Significant deterioration of the business climate due to Poland-EU relations
03:46
Poland's relations with the European Union have never been so tense. Brussels suspends approval of the National Reconstruction Plan and requests penalties for failure to comply with the CJEU judgment on the Disciplinary Chamber of the Supreme Court. The specter of penalties for failure to stop coal mining in the Turów mine also hangs over Poland. And Deputy Marshal Ryszard Terlecki pours oil on the fire, discussing "drastic solutions" in the context of Poland's presence in the EU. All this creates a terrible climate for businesses and investors.
The money from the KPO is to be allocated to many investments that are to help Poland overcome the crisis caused by the pandemic. The problem is that the plan has still not been approved by Brussels
For failure to comply with the CJEU's decision on the Disciplinary Chamber, we can expect a total fine of up to €60 million per year.
"The conflict with the European Union may result in, firstly, a reduction in the funds we receive from the EU, and secondly, it shows a significant deterioration in the business climate," Jeremi Mordasewicz, expert and advisor to the Lewiatan Confederation, believes.
In the case of money, it is about the Reconstruction Fund, which the Union decided to create in 2020. It is intended to support the economies of the Community countries after the crisis related to the pandemic. Poland is to receive about €57 billion from it – €23.9 billion in the form of grants and €34.2 billion in the form of loans.
The National Reconstruction Plan necessary to receive them, which specifies the areas of expenditure, was sent to the European Commission on May 4. And since then there has been silence. The European Commission has not approved the Polish KPO all the time, although 18 countries have already received the green light for their plans, and 10 of them have already received the money.
"If Polish entrepreneurs do not get these billions of euros, allocated directly to innovation, but also through public services, a good education system, good health protection system, infrastructure development, Poland will lose its competitiveness in relation to other countries," Mordasewicz added.
In his opinion, however, the matter of the rule of law and doubts as to the operation of the Polish judiciary is more important.
"The signals coming from the European Union that one cannot trust the Polish judicial system have a direct, negative impact on investors," Mordasewicz pointed out.
