Poland has hit the brakes on payments from a EU-funded program designed to support hotels, restaurants, and cultural venues in the wake of a startling revelation. The country’s funds ministry, led by Minister Katarzyna Pełczyńska-Nałęcz, has suspended further disbursements under the multimillion-euro scheme after unsettling discoveries were made.
A transparency initiative brought to light grants allocated to unconventional recipients such as yachts, vodka bars, and even a business linked to a sex club registered at the same address. Around 2,400 grants, totaling a substantial 1.2 billion złoty (€282.3 million), are now subject to individual audits before any additional funds are released.
Minister Pełczyńska-Nałęcz emphasized the importance of scrutinizing every złoty to uphold public trust in EU funds and ensure they are genuinely benefiting the intended recipients. Only a fraction of the budget, about 110 million złoty (€25.8 million), has been distributed so far, leaving the majority of the program’s funds in limbo.
The HoReCa initiative, a key component of Poland’s delayed EU Covid recovery plan, aimed to assist small tourism and hospitality businesses in adapting post-pandemic. This move followed years of tension between Brussels and the prior Law and Justice (PiS) government over rule-of-law issues, culminating in the recent release of the €59.8 billion recovery fund for Poland after Prime Minister Donald Tusk’s election victory in 2023.
However, the publication of an interactive map showcasing grant recipients last week sparked controversy as social media buzzed with reports of questionable purchases like boats, luxury furnishings, and a grant tied to a swingers’ club address. The PiS party swiftly capitalized on the situation, accusing Tusk’s administration of favoritism and mismanagement, thereby exposing rifts within the ruling coalition.
Responding to the accusations, PiS spokesperson Rafał Bochenek criticized Tusk’s government for failing to deliver on promises of post-pandemic reconstruction and job creation. In contrast, Tusk defended his administration by pointing fingers at the previous PiS regime for obstructing fund allocations over the years, leaving little time for a proper and deliberate distribution process.
Despite the controversies, the European Commission has stressed that the responsibility for managing these funds lies squarely with Warsaw. While closely monitoring the unfolding situation, the EU executive maintains that the onus is on the Polish government to rectify the mismanagement and ensure the funds serve their intended purpose effectively.
