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    European Commission Greenlights Poland’s Amended Recovery Plan, Clearing Path for EUR 5 Billion Payout

    The European Commission (EC) has granted its approval for Poland’s revised National Recovery Plan (KPO), marking a significant step forward in accessing over EUR 5 billion from the European Union’s post-pandemic recovery fund, according to the Ministry of Funds.

    Poland is slated to receive a substantial financial injection of nearly EUR 60 billion in grants and loans from the EU’s pandemic relief fund through its KPO initiative. However, Brussels has stipulated that certain rule-of-law ‘milestones’ must be met by Poland before these funds can be disbursed. This includes the full adherence to an EU court ruling that mandates Poland to reform its procedures for disciplining judges.

    A protracted rule-of-law dispute between Warsaw and the EC has persisted due to the Law and Justice government’s resistance to rolling back judicial reforms, resulting in the freezing of KPO funds. The recent approval of an amendment to the KPO by Brussels signals a positive turn in this ongoing saga, as confirmed by the Ministry of Funds and Regional Policy.

    In a press release issued on Tuesday, the ministry stated, “The European Commission today issued a positive opinion on the amended KPO.” The approval encompasses additional loans amounting to EUR 23 billion, for which Poland submitted an application on March 31, and additional grants totaling EUR 2.76 billion from REPowerEU—an EC initiative aimed at ending dependence on Russian fossil fuels by 2030. These components were included in the amended KPO submitted to the EC on August 31. Poland is set to receive an advance of over EUR 5 billion, representing 20 percent of the total sum.

    With the recent budget revision, the KPO has expanded to EUR 59.82 billion (PLN 261.4 billion), comprising EUR 25.28 billion (PLN 110.4 billion) in grants and EUR 34.5 billion (PLN 151 billion) in preferential loans. Importantly, the disbursement of the more than EUR 5-billion advance is not contingent on Poland meeting any specific milestones, according to the ministry’s statement.

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