EC delays handouts as government fails to meet deadline

The government has failed to meet all its obligations on time, as required in order to receive EUR 12.45 billion backing from Brussels. On Thursday the Commission signed an agreement with Poland envisaging the projects, which are to be carried out in the first three years after the accession. Most of the money would finance construction of highways, railways and sewage treatment plants, as well as support for poor and rural regions. The Commission will allocate to Poland about EUR 3.5 billion in 2004, on the condition it is spent by the end of 2006. "Adjusting to the EU regulations is in the interest of accession countries. If, however, they fail to do it, then the money will stay in Brussels," said Michel Barnier, EU Regional Aid Commissioner. (Rzeczpospolita, pp. A1, B1) M.M.