Wednesday, 05 May 2021 02:35

Polish parliament approves legislation needed for EU recovery fund

Poland’s lower house of parliament on Tuesday (4 May) approved legislation essential to the European Union’s €750 billion COVID-19 recovery fund, bringing the 27-nation bloc a step closer to implementing the plan.

EU governments approved the recovery fund last year to help member states bounce back from the economic damage caused by the coronavirus pandemic. But all countries must ratify a decision to raise the upper limit for national contributions to the EU budget in order for the plan to go ahead.

“We say a loud ‘yes’ to the development of Poland thanks to European Union funds – this is an opportunity to recover from the crisis after the pandemic,” Prime Minister Mateusz Morawiecki told lawmakers before the vote.

The legislation was passed by a 290-33 margin with 133 abstentions. It now goes to the Senate, or upper house, which is expected to vote later this month.

So far 19 EU member states have completed the ratification process for the coronavirus recovery fund.

Recovery fund faces new hurdles with first disbursements

The European Commission could find it difficult to transfer the first tranche of the recovery funds to all member states according to its calendar, as most plans are expected to be approved at the same time and there will be limited capacity to borrow from the markets.

United Poland, a junior partner in the governing coalition, voted against the bill, meaning the government had to rely on opposition votes for it to pass.

United Poland opposes the EU recovery plan, saying it could force predominantly conservative Catholic Poland to accept liberal policies like gay marriage and become saddled with debt.

Opposition parties were split on whether to give the divided ruling coalition the votes it needed to pass the legislation, with some insisting the issue should be used to bring about early elections.

However, on Tuesday the Left grouping voted in favour of the legislation after having agreed with the government last week on proposals for how the money should be spent.

Nearly all MPs from the largest opposition party, the liberal Civic Platform, abstained.

The government said on Friday it would send a draft of its National Recovery Plan describing how funds will be spent to Brussels, but there could be minor changes.

Germany, France, Italy, Spain push for implementation of recovery fund

Finance ministers of Germany, France, Italy, and Spain urged member states on Wednesday (28 April) to submit their recovery plans and pressed the European Commission to speed up the assessment of the investment and reform proposals.