EU deducts unpaid fines from payment to Poland

The Polish Finance Ministry confirmed on Thursday that the European Commission (EC) has paid Poland EUR 30 million less in EU funding over the country’s failure to pay European Court of Justice (ECJ) fines, in an unprecedented move.

The ECJ has so far levied EUR 200 million in penalties against Poland in connection with two rulings: one for refusing to close its coal mine in Turow and another for establishing a disciplinary chamber for judges, Polish media reported on Wednesday.

Penalties for the chamber currently total EUR 150 million, with a further EUR 1 million being levied daily, while the EC is also withholding billions in COVID-19 recovery funds. The Polish Finance Ministry said the state budget will make up for the shortfall in funding.

Poland ignored the court’s imposition of a daily fine of EUR 500,000 for not closing Turow, which is close to Poland’s border with Czechia.

When Poland and Czechia agreed in February that Turow could stay open, after which Prague withdrew the complaint it had filed with Europe’s top court, the EC announced that it would withhold at least EUR 15 million due to Poland.

Source: Notes from Poland