Poland’s recovery fund revision agreed, PLN 10 bln transfer expected in summer (interview)
Following the European Commission approval to the create a special defence fund within Poland's national recovery plan KPO, everything is now agreed within the revision of KPO, all that remains is its formal approval by the EU Council, deputy minister of development funds and regional policy Jan Szyszko told PAP Biznes. A transfer of about PLN 10 billion (EUR 2.4 bln) of EU funds under KPO is expected this summer.
Deputy minister Szyszko told PAP Biznes that negotiations with the European Commission have been concluded successfully, marking the first time the EU has agreed to such a broad defence and security support from its funds.
"We have concluded negotiations with the European Commission yesterday evening, which seals that the Commission agrees to such wide defence and security support from EU funds," he said.
Szyszko explained that the Defence and Security Fund (FBiO) will be financed by redirecting PLN 26 billion (EUR 6.1 bln) from the KPO’s green urban transformation budget.
The fund aims to strengthen Poland's defence capabilities, supporting infrastructure, the defence industry, and cybersecurity. Its launch is planned for the third quarter of 2025, pending Poland's adoption of legislation and investment strategy this autumn.
As Szyszko pointed out, only formal approval by the EU Council remains to be granted, expected at the ECOFIN meeting in June. Szyszko stressed that Poland has achieved its goals in the revision, avoiding financial penalties and redirecting over PLN 20 billion (EUR 4.7 bln) originally at risk of being returned to the EU, towards defence and security.
Regarding KPO payments, Szyszko expects a new tranche in July, likely smaller than the previous one but sufficient to maintain liquidity, estimated at PLN 10 billion (EUR 2.4 bln).
The deputy minister noted that 50 percent of grant agreements, worth about PLN 56-57 billion (EUR 13.2-13.4 bln), are already signed, ensuring funds will flow into the economy in the coming months, with all grant payments due by August 2026.
The Ministry of Development Funds and Regional Policy (MFiPR) reported that Poland has signed 758,000 agreements with beneficiaries under KPO, totalling over PLN 106 billion (EUR 24.9 bln), covering investments in rail infrastructure, energy transition, digitisation and healthcare.
The total KPO budget exceeds PLN 254 billion (EUR 59.7 bln), including grants and preferential loans, with PLN 67 billion (EUR 15.8 bln) already disbursed.
jz/ nl/ ao/