Poland in particular experienced numerous setbacks during the Covid-19 pandemic. The lower quality of health care compared to countries in Western Europe was reflected in the infection figures. In this year’s edition of Intrum’s European Consumer Payment Report, Poland ranked 21st on the indicator of financial well-being of EU countries, with a score of 5.98. The recovery plan presented by THE EU should pave the way out of the upcoming crisis.
The recovery plan for Poland
Poland is to be one of the biggest beneficiaries of the programme, along with Italy and Greece. The focus of this recovery programme is set on digitalization and environmental protection. In both areas, Poland is less developed than other European countries. In addition to the Next Generation EU (NGEU) recovery plan, entrepreneurs should also keep an eye on the new EU budget for 2021 until 2027. A total of 1.8 trillion € is to be retrieved, which corresponds to 13% of the EU’s GDP, of which 130 billion € are allocated for Poland.
| ┌ Recovery plan for Poland ┐ | |
| Next GenerationEU | Multiannual Financial Framework (MFF) |
NextGenerationEU will be used to decrease the direct corona-related damage to the economy and society. A total of over 750 billion € (of which: 390 billion € in grants, 360 billion € in loans and 5.6 billion € in provisions for guarantees) have been allocated for this purpose. Amongst others, in NextGenerationEU funding will be provided via the Recovery and Resilience Facility, REACT EU, the Just Transition Fund and the European Agricultural Fund for Rural Development.
► Recovery and Resilience Facility:
In the framework of the Recovery and Resilience Facility EU Member States can apply for the funds after the respective Recovery and Resilience Plan has been prepared. The economy and society should become more crisis-proof and sustainable. By the end of February, the Polish Recovery Plan (Krajowy Plan Odbudowy, KPO) will first be coordinated at national level. The application has to be submitted to the European Commission by the end of April. At least 37% is to be allocated to environmental protection and 20% to digitization.
| For 70 % of the amount available | For 30 % of the amount available (exact allocation to be decided in autumn 2022) |
Total | |
| Poland | 20.3 | 3.6 (estimation) | 23.9 |
| EU 27 | 234.5 | 103.5 | 338.0 |
Maximum grant allocations, in billion €
► REACT-EU: Recovery Assistance for Cohesion and the Territories of Europe
In 2021 until 2022, additional funding will be provided through the European Regional Development Fund (ERDF), the European Social Fund (ESF), and the European Fund for Aid to the Most Deprived (FEAD).
| 2018 prices | Current prices | |
| Poland | 1.556 | 1.651 |
| EU 27 | 37.500 | 39.795 |
Amounts in million €
| Under NextGeneration EU | Under MFF 2021-2027 | Total | Share | |
| Poland | 2.000 | 1.500 | 3.500 | 20,0% |
| EU 27 | 10.000 | 7.500 | 17.500 | 100,00% |
Amounts in million €
| 2021 | 2022 | Total | |
| Poland | 279.5 | 665.2 | 944.7 |
| Total | 2.387,7 | 5.682,8 | 8.070,5 |
Amounts in million €
| European Agricultural Guarantee Fund | European Agricultural Fund for Rural Development | Breakdown of Cohesion Policy (Total allocations) | |
| Poland | 21.682,1 | 9.532,1 | 75.034 |
In general, Poland will receive a total of 170 billion € in the years 2021 until 2027. The voivodeships of Śląskie, Dolnośląskie, Wielkopolskie, Małopolskie, Łódzkie and Lubelskie, i.e. the coal mining regions in Poland, will receive an additional 4.4 billion € in relation to the energy transition. The eastern part of Poland, Polska Wschodnia, will receive an additional 2.5 billion €. It is the first EU budget combined with a rule of law mechanism. Final beneficiaries are not to be disadvantaged in the event of EU funding cuts due to violations of EU values by their Member State.
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