Success at the European Council - we negotiated over PLN 750 billion from the EU budget and the European Instrument for Reconstruction
Poland will be able to benefit from approx. EUR 139 billion in grants and approx. EUR 34 billion in loans (in current prices) under the Multiannual Financial Framework and the European Instrument for Reconstruction. This money will help rebuild and strengthen the Polish economy after the coronavirus pandemic, as well as achieve EU goals in 2021-2027.
Extremely difficult and lengthy negotiations led to the adoption of the largest budget package in the history of the EU. This means a massive investment injection for the whole of Europe, essential for the rapid recovery of the economies after the crisis. Poland has won substantial resources from the Cohesion Policy, the Common Agricultural Policy and secured access to resources for a fair climate change.
Poland matters much more in the EU today than it did a few years ago. We do not only have a consultative voice, but also a decisive or co-decisive one pointed out Prime Minister Mateusz Morawiecki. As he added, today we are opening a new chapter in Poland's presence in the EU.
Thanks to the successful negotiations, over the next 7 years, Poland can catch up with countries that seemed out of reach emphasised the Prime Minister.
No arbitrary mechanism concerning the rule of law
In the last round of negotiations, Poland obtained additional funds of EUR 600 million for underdeveloped regions of Eastern Poland. These are the Lublin, Podkarpackie, Warmian-Masurian, Podlaskie and Świętokrzyskie Voivodeships. It was also possible to avoid the proposal to finance the EU budget through ETS revenues, which was unfavourable for Poland. Based on the common position of Poland and Hungary, no arbitrary and discretionary mechanism binding the budget to the rule of law was introduced.
There is no question of making European funds dependent on the rule of law. All procedures require unanimity in the European Council said the head of the government.
Thanks to the negotiations, Poland will not lose a single cent of the funds we have obtained for our development he added.
Negotiation success – approx. EUR 139 billion in subsidies and approx. EUR 34 billion in repayable aid for Poland (in current prices)
Thanks to the successful negotiations of the Polish government, we can benefit from over PLN 750 billion in support (in current prices). These funds will be available in the form of subsidies and very low-interest loans.
This result is higher than the result of the negotiations on the European Union budget for 2014-2020. Calculated in 2018 fixed prices, the support for Poland under the financial perspective for 2014-2020 amounted to approx. EUR 116.8 billion. As a result of the findings of the last summit, on the other hand, Poland will receive almost EUR 125 billion (in constant prices from 2018). This is over EUR 7 billion more in 2018 prices.
Better conditions and more EU funds for Poland
As a result of long negotiations, several key demands of Poland have been fulfilled:
- we have increased funds for Poland from the cohesion policy and the Common Agricultural Policy
- we have excluded the proposal to finance the EU budget from ETS (Emissions Trading Scheme) revenues, which is unfavourable for Poland
- we have reduced Poland's contribution from the so-called plastic contribution, i.e. non-recyclable plastic waste
- we have improved conditions for the implementation of cohesion policy (higher EU co-financing rates, longer spending period)
- we have corrected the provisions on the commitment to climate neutrality so that they are in line with the conclusions of the European Council of December 2019, i.e. not imposing obligations on individual Member States
- on the initiative of Poland and Hungary, the European Commission's proposal relating to the rule of law was not introduced. Instead, we will focus on protecting the EU's financial interests, ensuring the Council's control over the process.
The most important negotioations of the last years
From 17 to 21 July, Prime Minister Mateusz Morawiecki together with the other leaders of the EU Member States took part in an extraordinary European Council in Brussels. This was the first non-virtual meeting since the outbreak of the COVID-19 pandemic.
The summit discussions focused on negotiations on the EU's multiannual budget for 2021-2027 and the European Instrument for Reconstruction. Due to the global crisis caused by the coronavirus pandemic, these are among the most important EU negotiations of recent years. From the beginning, the Polish government stressed that the budget must be ambitious, but also adopted as soon as possible.
Polish government supports strong EU policies
The Multiannual Financial Framework, together with additional EU funds under the European Instrument for Reconstruction, will constitute a developmental stimulus for the European economy.
One of the main demands of the Polish government was to include a strong cohesion policy and the Common Agricultural Policy in the EU budget. The key importance of the common market and industrial development strategy in the EU in rebuilding the European economy after the pandemic crisis was also emphasised.
From the very beginning, Poland stressed that the European Instrument for Reconstruction should have fair mechanisms for the distribution of funds, taking into account in particular the differences in the level of wealth.
A stable and robust legal framework without discretionary mechanisms contrary to the spirit of the Treaties is essential for effective reconstruction and further development.