The Permanent Representative of the Republic of Poland to the European Union has officially informed the General Secretariat of the Council about Poland’s ratification of the Special Resources Resolution.
“The Permanent Representative of the Republic of Poland to the European Union has officially announced that Poland has ratified the resolution on special resources. Poland will receive €170.7 billion in funds from the Multi-Year Financial Framework and the Next Generation Recovery Facility,” the Permanent Representative of Poland to the EU stated.
The document, addressed to the Council Secretariat and signed by the Permanent Representative of the Republic of Poland to the European Union, Andrzej Sadoch, was published on Twitter.
On Monday, President Andrzej Duda endorsed the decision of EU leaders to increase their own resources in the EU budget. This is the next step, after the signing of the ratification law, which allows the mobilization of funds from the EU budget and the Reconstruction Fund.
After the countries ratified the decision to increase special resources in the EU budget, the next steps for launching the Reconstruction Fund became along with the European Commission.
The European Commission has to approve each of the 27 national reconstruction plans. From the moment they are received, the commission has two months to issue an opinion. However, this period may be extended if necessary with the consent of both parties. During this period, the REC may request the state for clarification or additional information about the content of the plan.
Following the positive opinion of the European Commission, the Council has to give its final approval to accept each of the 27 documents. This will open the way for the first payment of funds from the fund. The money that will contribute to the fund will be borrowed by the European Commission in the financial markets.
“Once the certification process is complete, the Commission will determine the best time to start the loans, given market conditions,” European Commission spokesperson Palash Ogvari said recently. Our goal is to reach a wide range of investors and achieve optimal price conditions. He added that sufficient time is needed to achieve this goal.
The ratification of the Special Resources Resolution in all Member States and the adoption of the National Action Plan open the way for the Member State to receive an advance from the Fund. It is paid within two months of KPO approval.
Advance payments, set at 13 percent. Of the total amount allocated to Member States, it will be made available as soon as possible to ensure that funding from the Fund gets to where it is most needed as quickly as possible.
Reconstruction Fund funds must be available in the form of grants and loans. Eligible for funding are national recovery and resilience plans in key EU policy areas, i.e. green transformation (including biodiversity), digital transformation, economic cohesion and competitiveness, as well as social and regional cohesion.
Funding can also be obtained for projects that deal with institutional response to a crisis and provide support for crisis preparedness, and projects related to children and youth policy, including education and skills.
In every national plan, at least 37%. The budget is allocated to climate, at least 20 percent. for digitization activities. The plans must also have lasting social and economic impacts, include comprehensive reforms and robust investment packages, and must not significantly impede the achievement of environmental goals.
The 27 European Union countries reached an unprecedented agreement last year to jointly lend 750 billion euros to the Reconstruction Fund, a tool for recovery after the coronavirus crisis. However, in order to implement the plan, all 27 EU countries had to ratify the decision on the new special resources.