European Commission President Ursula von der Leyen announced on Friday that the EU will start releasing up to €137 billion ($148 billion) in funds to Poland the following week.
This move is in recognition of Poland’s efforts to reinstate rule of law principles, particularly under the new leadership of Prime Minister Donald Tusk, who aims to mend ties with the EU and unlock billions in aid previously withheld due to concerns over democratic backsliding.
Von der Leyen praised Poland for its commitment to upholding the rule of law. This step is seen as a significant indication of Poland, a key EU eastern economy, moving away from the isolation it experienced under eight years of nationalist governance.
The funding, which represents about 22% of Poland’s annual GDP, includes post-pandemic aid and cohesion funds and is expected to spur investments in green initiatives and infrastructure, with disbursements spread over the coming years.
Some of the initial payments will support small food producers and farmers who have been protesting for regulation on the inflow of Ukrainian agricultural products and changes to EU climate policies.
The release of these funds marks a departure from the tensions between Brussels and Warsaw during the tenure of the Law & Justice party, which faced legal actions and substantial fines from the EU.
Financial markets have responded positively to Tusk’s election victory, anticipating access to EU funds, with noticeable gains in the Polish currency and stock market.
The EU’s readiness to approve Warsaw’s request for a €6.3 billion tranche from the aid package was reported, with formal approval by the European Commission and subsequent endorsement from EU member states still pending.
