There is a green light from the European Commission. EUR 6.2 billion from the KPO for Poland

The European Commission announced on Wednesday that it had positively considered Poland's third application for payment from the National Reconstruction Plan (KPO). Poland will receive EUR 6.2 billion. According to the EC, this money is to be invested in particular in education, digital development, clean energy and transport.

This is PLN 26 billion, for which the Polish government submitted an application to the EC at the end of 2024.

– After assessing the payment application, the Commission concluded that Poland has satisfactorily achieved 30 milestones and 14 targets (related to the investment part of the KPO – PAP) – the EC said in a press release. In total, the Polish KPO includes 54 reforms (called milestones) and 54 investments. The condition for payment of money is progress in implementing the obligations specified in the KPO.

– Reforms and investments related to this payment application will drive positive changes for citizens and businesses in Poland, in particular in the areas of education, digital development, clean energy and transport – emphasized the EC.

Brussels will be able to transfer the money to Warsaw after the European Commission's committee composed of representatives of member states issues an opinion on the Polish application, and it has one month to do so.

As informed by the European Commission, EUR 6.2 billion is to be allocated, among others, to: for the modernization of heating systems in single-family and multi-family residential buildings. Poland also aims to facilitate the integration of renewable energy networks through regulations enabling cable splicing.

Due to the new tranche of money, mandatory low-emission zones in cities with a high degree of pollution are also to be established in Poland.

The aim will also be – as the EC informed – to “promote investments in offshore wind energy” and “support innovation in the field of hydrogen by creating favorable conditions for the development of the technology”.

Poland will be obliged to implement quality standards for child care and ensure long-term financing of services for children under three years of age.

As the EC emphasized, in connection with the third payment for Poland, regulations will be established to improve the implementation of 5G technology by eliminating regulatory and logistical barriers.

Further investment in the modernization of road infrastructure is also planned to increase safety and reduce the risk of road accidents.

Poland received PLN 67 billion from the previous three KPO payment applications: PLN 27 billion from the first one was received by Poland in April 2024, PLN 40 billion – in December 2024.

In order for the Polish government to submit the fourth application for payment from the KPO, the process of changes to the Polish plan, initiated by the government at the end of September this year, must be completed. Member countries can apply for payment twice a year.

The new Polish revision of the KPO provides for, among others: abolition of fees for the use of combustion cars and reduction of the loan pool by PLN 21.5 billion (EUR 5.1 billion).

The registration fee for private combustion cars and the cyclical environmental fee for entrepreneurs were supposed to come into force next year, but the government wants to remove them. In return, in talks with the EC, it proposes facilitations for the production of biomethane and biogas transmission, as well as cogeneration solutions and joining the EU systems creating a common energy balancing market.

Poland wants to reduce the pool of loans that could go unused by the end of the KPO in August 2026 and which could constitute a cost to the state due to the increase in its borrowing needs.

The Polish KPO has been changed three times so far. The first revision was accepted by the European Commission in November 2023, the second in July 2024, and the third in June this year. The latter assumed primarily the creation of the Security and Defense Fund, as well as the strengthening of the National Labor Inspectorate (instead of levying contributions on mandate contracts).

From Brussels Magdalena Cedro (PAP)

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