RRP's revision approved by the European Commission
02.07.2024
On 1 July this year, the European Commission approved on Poland's proposal to revise the National Recovery and Resilience Plan (RRP), which our country submitted to the Commission on 30 April 2024.
The National Recovery and Resilience Plan (RRP) currently encompasses 57 investments and 54 reforms. Its goal is to strengthen the Polish economy and make it crisis-resilient. Under the National Recovery Programme, Poland will receive EUR 59.8 billion (PLN 257.1 billion), including EUR 25.27 billion (PLN 108.6 billion) in grants and EUR 34.54 billion (PLN 148.5 billion) in preferential loans. In line with EU targets, a significant share of the budget under the RRP will account to climate objectives (44.96%), digital transformation (21.28%).
The changes to the RRP were introduced due to a review of the state of play of reforms and investments under the Plan. The RRP's revision comprises 7 components. The revision includes 18 reforms (12 reforms from the grant part and 6 from the loan part) and 39 investments (26 from the grant part and 13 from the loan part of the RRP).
The key changes concern:
- Healthcare – regarding the modernisation of the infrastructure of medical treatment facilities, the changes are intended to launch contests in phases for entities in various areas (oncology, cardiology and general support for hospitals).
- Agricultural sector – increased allocation in this area and thus increased number of farmers and fishermen implementing projects to modernise infrastructure and equipment and support for technologies in agriculture 4.0; increased number of storage and distribution centres built or modernised and wholesale markets modernised and new indicator on education in agriculture 4.0 added.
- Support for local authorities by transferring, from the loan part to the grant part, funding for long-term and geriatric care centres in district hospitals.
- Abolishing the internal combustion vehicle tax to replace it with a system of subsidies for the purchase, rental and leasing of electric cars by natural persons.
- The Electromobility Fund with a budget of EUR 1.1 billion (approx. PLN 4.7 billion) will be implemented under the loan part of the RRP.
The funds released from the grant part will be used for:
- EUR 600 million (roughly PLN 2.6 billion) - Food Security and Agriculture 4.0 – including funds for additional 86 distribution and storage centres and wholesale markets, additional support for 30 SMEs in the agrifood sector, modernisation of infrastructure and equipment for over 30,000 farmers and fishermen and to support technology in the field of agriculture 4.0, 50 projects in the field of education on agriculture 4.0.
- EUR 140 million (approx. PLN 602 million) – energy renovation of multi-dwelling buildings,
- EUR 373.75 million (approx. PLN 1.6 billion) – subsidies to purchase/lease/rent electric cars,
- EUR 150 million (approx. PLN 645 million) – modernisation of district hospitals’ infrastructure,
- EUR 40 million (approx. PLN 172 million) – to purchase new laptops for teachers, and also browser-based laptops and tablets for pupils,
- EUR 127 million (approx. PLN 547 million) – new IT systems: expansion of the EZD (electronic document management) public IT system and the addition of e-services as part of Tax Office 2.0 and the implementation of the National e-Invoice System.
Work on the revision of the RRP
In January and February 2024, the Ministry of Developments Funds and Regional Policy and the ministries responsible for implementing the RRP assessed the status of its implementation.
The public consultation on the draft revision of the RRP was held from 15 March to 15 April 2024 and was attended by representatives of the local government, NGOs as well as social and economic partners. In total, more than 1,100 comments were submitted from more than 100 stakeholders during the consultation activities. The public consultation report was published on the MDFRP website.
The public consultation was summarised during the third meeting of the RRP Monitoring Committee, held on 18 April this year. Committee members were given the opportunity to discuss and present their views on the revision of the RRP.
On 30 April this year, the Council of Ministers adopted a resolution to amend the National Recovery and Resilience Plan, submitted by the Minister of Development Funds and Regional Policy.
The revision was then sent to the European Commission. The Commission had two months to formally assess it. On 1 July this year, the EC approved the revision.
A revised implementing decision is scheduled to be adopted by the Economic and Financial Affairs Council (ECOFIN) on 16 July. The decision will be adopted and published one to three days later, which will bring the revision procedure to an end.
In late August/early September, the Ministry of Development Funds and Regional Policy will submit the second and third payment request under the RRP, with reimbursement expected by the end of 2024.