Poland avoided punishment from the European Commission. Brussels adopted changes to the KPO
This decision not only protects the wallets of Polish drivers, but also opens the way to the payment of further billions of euros.
The final approval of the revision of the Polish plan was announced on Wednesday by the European Commission spokesman, Maciej Berestecki. These changes are the result of intensive negotiations, the successful conclusion of which was announced on May 13 by the Deputy Minister of Funds and Regional Policy, Jan Szyszko. For failure to implement the reform in its original form, a huge fine could be imposed on Poland, reaching up to EUR 4 billion.
According to the information provided by the Ministry of Funds, three fees that were included there by the previous government were successfully removed from the KPO. This concerns a tax on owning a vehicle with an internal combustion engine, a fee for registering such a car and an additional burden for companies with at least two cars in their fleet.
Green light for further payments from KPO
Brussels' decision is of fundamental importance for the financial liquidity of the entire program. Without formal approval of these changes, Warsaw would not be able to send another payment application to the Commission, a the government plans to apply for KPO funds at least once more this year.
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The current pace of implementation of the funds is very dynamic. So far, Polish companies and local governments have already received PLN 68 billion (EUR 16 billion). However, the Ministry of Funds and Regional Policy sets itself much more ambitious goals – the ministry announced that it intends to pay another PLN 140 billion (EUR 33 billion) to beneficiaries by the end of this year.
A race against time and billions on the table
It is worth recalling that at the end of April, the EC positively assessed Poland's 4th application for payment for the amount of EUR 7.2 billion (approximately PLN 30 billion). However, the payment of this money, expected at the turn of May and June, was conditional on, among others: the reform of the National Labor Inspectorate (PIP), extending its powers, which President Karol Nawrocki signed on April 2.
There is little time to use the gigantic budget, because the deadline for the implementation of the KPO expires this year. All Member States must meet outstanding targets by August and submit final payment claims by the end of September.
The entire National Recovery and Resilience Plan for Poland consists of 59 investments and 54 reforms. In total, our country is to receive as much as PLN 233 billion (EUR 54.71 billion), of which approximately PLN 107 billion are non-repayable subsidies and the remaining PLN 126 billion are preferential loans intended to strengthen the Polish economy.
