On Tuesday (September 27) the EU Commission deducted from Poland another – sixth – tranche of penalty money. Last year, in a scenario where firms only need certainties, the Court of Justice of the European Union imposed daily fines on Poland in relation to two cases: the functioning of the Turów coal mine and of the contested Disciplinary Chamber of the Supreme Court. The fines for Turów were being deducted from September 20, 2021, until February 3, 2022, and amounted to a total of 68.5 million euros. For not complying with the said ruling, the CJEU has imposed a fine on Poland of 1 million euros per day charged since November 3, 2021. It is being deducted by the European Commission from EU funds earmarked for the country. As a result of not complying with the CJEU ruling regarding the judiciary, Poland has already lost around 1.1 billion zlotys (approx. 230 million euros). This time, the Commission deducted 33 million euros, which is approximately 157 million zlotys.
Poland and the Commission have been stuck for months over unlocking €36 billion in grants and loans under the EU’s pandemic recovery program, which was originally supposed to be approved by July. Brussels isn’t willing to release the cash unless the government backtracks on changes to the court system that critics see as eroding judicial independence.
According to Politico, if the European Commission doesn’t approve Poland’s recovery fund plan by the end of the year, Warsaw could undermine key EU efforts like the Fit for 55 climate package, warned Waldemar Buda, Poland’s deputy funds and regional policy minister. If the plan isn’t approved by December, Poland won’t get a 13 percent prepayment that can be spent for any purpose. If there is a delay, the money won’t be lost but it will be folded into later tranches that have spending conditions attached and which won’t be disbursed before the middle of next year. If that happens, there is less time pressure on Poland, so it will be able to take a tougher position, Buda said. Too many ifs, in a moment when citizens and firms need certainties of business- and rule-of-law, at both national and European levels.