EU warns Poland it could lose funding

EU Budget Commissioner Guenther Oettinger warned Poland that it could lose financially if it refuses to change its stance on the controversial judiciary reform. “Either the rule of law and the independence of courts would constitute a condition for claiming European budgetary resources. Or otherwise, the restoration of the rule of law could be seen as a possible way of getting more resources,” he said. So far, recently appointed PM Mateusz Morawiecki, who went to Brussels trying to smooth things out is not backing down. “I genuinely believe that with an added effort to explain our intentions we will be able to clarify misunderstandings. I believe dialogue will lead to de-escalation,” Morawiecki said. The EU is gearing up to work on the next financial framework for the 2021-27 period. A budget smaller than the previous one, mostly due to Brexit, will have to make concessions. Oettinger said that while cohesion spending remained vital for the EU, he could envision a cut of between 5-10 percent. He also hinted funds should target the poorest regions, which would exclude most of Poland. Warsaw is currently the biggest beneficiary of EU funds, receiving €7 billion in 2016. Back in December, the European Commission launched an unprecedented Article 7 procedures against Poland. On Wednesday, and asked other EU member states to declare that Poland’s judiciary overhaul constitutes “a clear risk of a serious breach of EU values.” However, the EU is unlikely to impose the ultimate sanction of suspending Poland’s voting rights because its ally Hungary has vowed to veto any such move.