‘Brexit worse threat than EU conflict to Polish government’

Bloomberg

It’s Brexit, and not Warsaw’s escalating conflict with the European Union over democratic values, that presents a bigger threat to inflows of the bloc’s assistance to Poland, according to the government official in charge of funds absorption.
While the EU’s executive is set to move ahead this week with plans to slap unprecedented political sanctions on Poland, Deputy Development Minister Jerzy Kwiecinski expressed confidence that the bloc won’t interrupt the handouts through the end of this budget cycle. The uncertainty surrounding Brexit negotiations is a cause for concern, however, in terms of what will happen to the UK’s contribution to the bloc’s budget.
“The dispute with the European Union has so far had no impact on the current financing program, though I’d lie if I told you that tension helps the relationship,” he said in an interview. “Brexit can definitely have a negative impact, especially if it leads to a financial gap with no plan by member countries
to cover that.”
The conflict with the EU was set off by judicial changes implemented by Poland’s ruling Law & Justice party that the bloc and with human-rights groups say undermine the independence of courts and the rule of law. EU leaders have criticised Poland, the biggest net recipient of its funds, for taking about 10 billion euros ($11.8 billion) per year while failing to respect
the bloc’s values.
On Wednesday, the EU’s executive is likely to recommend activating a European Treaty article that would bring Poland a step closer to losing its voting rights, Budget Commissio-
ner Guenther Oettinger said. French President Emmanuel Macron and German Chancellor Angela Merkel said during an EU summit in Brussels last week that they would support the commission if it calls for application of sanctions.
The EU has pledged to deliver a total of 229 billion euros in aid to Poland through 2021. Adjusted for inflation, that’s more than the US-funded Marshall Plan that helped rebuild western Europe. The money has helped power the Polish economy, contributing as much as a percentage point of growth
in GDP each year.
Poland hasn’t budged on its plans to overhaul the judiciary in the face of the probe, rejecting calls from some EU leaders to limit future funding for countries that fail to show respect for the rule of law.
“The tensions do impact discussions on the funding in the next program,” Kwiecinski said. “But we’re opposing adding new preconditions to fund-
ing, including linking funds with rule of law as suggested by the commission.”