Poland is set to receive up to 137 billion euros in funding

The head of the EU executive said on Friday that Poland will have access to up to 137 billion euros in EU money after the new Warsaw administration started putting measures into place that it claims will restore judicial independence in the nation.

The pro-European coalition government led by Prime Minister Donald Tusk pledged to unblock the money, and access to it will spur investment in an economy battered by the aftermath of the war in Ukraine and burdened by weakness in a major trading partner, Germany.

Poland is going to have access to almost 60 billion euros in funding intended to assist nations in recovering from the COVID-19 epidemic and making the switch away from fossil fuels.

Warsaw will also have access to cohesion funds worth about 76.5 billion euros, which are intended to assist improve living conditions in the poorest nations of the European Union.

"They will help finance this year's deficit, but the actual spending of the funds will take several months (we won't see an investment rebound until 2025)," ING economists posted on social networking site X.

A protracted dispute with the EU arose between the previous administration, led by the nationalist Law and Justice (PiS) party, and measures that some claimed gave the political party more control over the judiciary.

Due to the dispute, Brussels denied Warsaw access to the money, stating that Poland needed to reach certain goals regarding judicial independence before the funds could be unfrozen.

Poland has already received five billion euros that were not subject to restrictions on the rule of law.

(Sources: investing.com, reuters.com)