As Jacek Karnowski, Deputy Minister of Funds and Regional Policy, tells Business Insider Poland, “when it comes to the implementation of the National Reconstruction Plan, we are still experiencing a two-year delay caused by the blockade by the previous government.”
And he admits: – Certainly The obstacle to the implementation of the KPO is the long winter. This applies especially to those investments that are carried out externally. There may be slight delays there.
— Besides, not all programs were prepared very well by our predecessors. But thanks to officials, entrepreneurs, local government organizations, local governments, I am convinced that we will be able to use ninety-something percent. subsidy funds – emphasizes Jacek Karnowski. This would mean almost full realization of the original ambitions of the Ministry of Funds. He declared that the goal was to use the entire available pool for KPO subsidies.
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The Security and Defense Fund took over some of the money from the KPO
He also reminds that when it comes to the KPO loan pool, the government partially waived it in the fall, and part of it was also redirected to the Security and Defense Fund (FBiO), due to the current geopolitical situation.
FBiO amounts to a total of over PLN 22 billion, which is to be allocated to defence, Polish technologies in this area and dual-use infrastructure – i.e. civil and defense –.
Innovative technology companies from the defense sector and local governments are to benefit from the Fund.
Funding from the FBiO is to go to investments covering four priorities, including approximately PLN 9.65 billion for the construction of shelters, places of refuge, wells, water intakes and local wells, and telecommunications infrastructure related to crisis management.
Approximately PLN 6.26 billion is to be spent on the construction and modernization of dual-use infrastructure, i.e. the modernization of roads, bridges and tunnels belonging to local governments and railway infrastructure.
The next priority is to be investments in cybersecurity. This area is to be co-financed with approximately PLN 2.46 billion.
The Polish defense sector is to receive a total of approximately PLN 4.05 billion to increase production capacity, including the construction and modernization of production infrastructure, purchase of software and IT services; machines and devices useful in crisis situations; machines and devices necessary to conduct industrial research and development work.
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Cohesion funds delayed by KPO
Jacek Karnowski points out that the KPO also affects how Poland spends cohesion funds from the current EU financial perspective for 2021-2027.
— The fact that the beneficiaries applied for funds from the KPO in the first place resulted in delays in other programs such as FEnIKS (European Funds for Infrastructure, Climate, Environment) or FENG (European Funds for a Modern Economy) – says the Deputy Minister of Funds.
Despite this, he adds, the goals in the area of cohesion funds set for 2025 have been achieved.
Moreover, he adds, voivodeship marshals transferred some of the money from cohesion funds to dual-use projects, i.e. dual use – civil and defense. These include, among others, investments in civil protection infrastructure, including the modernization and construction of protective facilities and shelter elements, development of crisis response systems, as well as activities strengthening energy resilience and housing security.
Karnowski is optimistic about using the money available to Poland. — I rate the chances of using cohesion funds highly from the current financial perspective. And this is despite the fact that some municipalities are still struggling with financial problems caused by the Polish Order or the change of government after the local elections in 2024. There were situations when new authorities dismissed substantive employees responsible for obtaining EU funds, which has very bad consequences, he emphasizes.
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The National Reconstruction Plan means billions for Poland
So far, as part of five submitted payment applications, Poland has received almost PLN 100 billion under KPO. In December 2025, Warsaw submitted the sixth and seventh payment applications for a total amount of EUR 7.2 billion (over PLN 30 billion). The last two payment applications remain to be submitted in 2026 – the eighth and ninth.
In fact the subsidy part of the KPO for Poland amounts to EUR 25.2 billion (approximately PLN 106 billion)and the loan part – EUR 29.4 billion (approximately PLN 124 billion).
KPO implementation deadlines are very tight. Poland must prove to the European Commission that all KPO milestones have been met by August 31, 2026. However, in justified cases, as the Ministry of Funds informs us, project payments will be able to be made after this date.
The European Commission should transfer all funds under the KPO to Poland by December 31, 2026, provided that all milestones are fully implemented.
