Blocking of funds – as Santander Bank Polska experts point out – it is related to the government’s non-compliance with one of the basic conditions for paymentthat is, to guarantee the right to an effective remedy and access to an impartial tribunal.
Blockade of EU funds – what does this mean for the economy?
“Poland can theoretically implement projects under approved programs, but the EC will not make any payments until the required conditions are met (…). This situation means a high risk for the implementation of public investments in 2023.– indicate the economists of Santander Bank Polska.
The loss of KPO and EU cohesion funds is like each poviat in Poland losing PLN 2 billion, or each municipality PLN 250 million, writes Dr Maciej Bukowski of think tank WiseEuropa on Twitter.
In his respect it can also mean a drop in the level of GDP of around 3%.which would have an indirect impact on local communities. This would be an additional loss of PLN 1 billion for each poviat and PLN 125 million for the municipality.
The zloty exchange rate is weakening. “Potentially very important consequences”
As Bukowski points out, this information can also have “potentially very significant consequences on the exchange rate” for the zloty.
Mateusz Urban, an economist at Oxford Economics, agrees. “Without EU funds, we will face a further decline in the zlotywith all its consequences (also inflationary) has the 2023 recession scenario becomes the benchmark (that is to say the most likely – editor’s note). We wanted Budapest in Warsaw and we will have it” – comments Urban.
As the economist puts it, “that would completely cut off Poland from EU funds catastrophic, in particular for public investments which would fall by around 25%.“.
“The recession is the least of the problems. The lack of funds from the EU will undermine the whole development model of the country, because it will make it impossible to maintain a good rhythm of consumption and a good rhythm of investment. public at the same time,” notes Ignacy Morawski, chief economist at Puls Biznesu.
The rest of the article below the video
See also: The risk of recession is huge. “Poland has a policy of weakening the zloty”
“The zloty depreciates in the morning. It is weighed down by news about the suspension of EU funds for Poland” – macroNEXT note. Against the major currencies on Monday morning, this is a loss of at least 0.2 PLN.
“Polish economy probably cannot cope without EU funds”
“Poland’s economy is likely unable to cope without EU funds at the momentwithout risking a crisis, and this will now become more evident with each passing week”, says Wojciech Stępień, Economist at BNP Paribas, and Mikołaj Raczyński of Noble Funds TFi note that “a two-speed Union awaits us, in which the 2 being phased out of many processes.
Rate the quality of our article:
Your feedback helps us create better content.
