The European Commission has formally requested explanations from the Polish government regarding reports of misuse of recovery funds. Allegations suggest that these funds, previously unblocked last year under Prime Minister Donald Tusk’s administration, have been improperly spent on luxury items such as yachts and sauna.
European Commission spokesman Maciej Berestecki stressed in an interview with Polish radio station RMF FM that “Poland has to take clarifying action” on the awarding of National Recovery Plan (NRP) grants”. Poland will now have to submit a payment request in November so that the European Commission can assess the projects’ compliance with the NRP criteria.
Zero tolerance, but…
According to the Commission’s press service, “…it is the duty of member states to take all appropriate measures to protect the financial interests of the Union.” The Commission has the possibility to intervene if the Polish authorities do not react appropriately, above all in situations of fraud. “If we see that this does not work, the European Public Prosecutor’s Office and OLAF (the Commission’s anti-fraud office) will step in,” the press service was quoted by European media as saying.
State prosecutors have launched probes into how the country handles the EU’s postpandemic recovery aid, even as Prime Minister Donald Tusk pledged “zero tolerance” for any abuse of the resources. Mr Tusk told reporters on Friday that “where spending lacks merit, I expect swift action, including the reclaiming of funds.”
The moves come after a government website showed the funds—mainly for investments to revive the economy—found its way to purchase items including yachts, tanning booths and specialized coffee machines. According to the Polish Onet server, a map showing companies that received subsidies from the fund appeared on the website.
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A virtual shooting range
Some EU funds reached unexpected destinations, such as a virtual shooting range as part of a program to “protect against the consequences of a potential crisis.” The information sparked outrage among the Polish public.
“The Ministry of Development Funds and Regional Policy has been aware of this for some time,” Mr Tusk said, adding that the Polish Agency for Enterprise Development, which is responsible for distributing EU subsidies, is currently under investigation. Its director lost his job without explanation at the end of July, when the government learned of the irregularities.
If we see that (investigation by Poland’s authorities) does not work, the European Public Prosecutor’s Office and OLAF will step in. — The European Commission press service
A total of €59.8bn is to go to Poland in the EU recovery plan, of which €25.3bn is in the form of grants, and €34.5bn in the form of preferential loans. By the end of 2024, the EU had paid out €15.8bn under the plan.
Extra piquancy
The scandal comes as the popularity of Tusk’s government is falling and an opposition-backed president Karol Nawrocki has just taken office. It plays into the hands of the opposition Law and Justice party (PiS), with extra piquancy added by the fact that it was the previous PiS government who lost billions of euros worth of EU money. This happened after EU courts ruled that Warsaw’s judicial overhauls gave politicians too much sway over judges, a breach of the bloc’s rule-of-law standards..
“Instead of an economic impulse, there’s a gigantic scandal,” said opposition de facto leader Jaroslaw Kaczynski. “These should have been funds for investments, for innovations, and for drug safety, but there is nothing.”
Mr Tusk is a former president of the European Council, who was successful in unlocking the funds after winning election in 2023 on a promise to restore Poland’s democratic order. This past spring, his ally narrowly lost a presidential election, a situation threatening a debilitating political gridlock. The new head of state only assumed office on 6 August.
