The Polish government of Donald Tusk immediately froze the disbursement of European Union funds intended for the post-COVID recovery of the hospitality, tourism, and culture sectors after possible irregularities were detected in their use. The decision, announced by the Minister for Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, means that no contract will receive further money until it has passed a full audit.
The suspension affects 256 million zloty—part of the €60 billion allocated by the EU to Poland—aimed at companies particularly hard-hit by the lockdowns. According to the minister, only 10% of the 1.2 billion zloty earmarked for these sectors has been paid out. The irregularities appear in a minority of contracts. Still, the government has launched two audits: one internal and another within the Polish Agency for Enterprise Development (PARP), the body managing the grants. Pełczyńska-Nałęcz dismissed its director in July, citing the “high probability of a systemic problem.”
The case became public after internet users uncovered spending on luxury goods—such as yachts and saunas—and controversial projects, including a platform to teach bridge and a “glamping with alpacas” business. And this appears to be only the tip of the iceberg.
The scandal has triggered a direct political clash. Prime Minister Donald Tusk blames the previous Law and Justice (PiS) government for designing the program and delaying access to the funds due to its disputes with Brussels over the rule of law. According to Tusk, his cabinet had to spend quickly to avoid losing the money, although he admitted that this does not justify “inaction or negligence by those responsible.” Here, Tusk omits the other side of the story: Brussels refused to release these funds to Poland while PiS was in power, precisely as is happening today with Hungary’s funds, which remain partially frozen.
As soon as Tusk won the election—merely by presenting a program of reforms after the vote—Ursula von der Leyen deemed it sufficient to unblock the funds. This suggests that the freeze on the conservatives was driven more by political than legal motives.
PiS, now the main opposition force, accuses the current government of “squandering public funds” and favoring business owners close to the ruling coalition. It has launched a travelling campaign with graphic examples of alleged misuse of the money, accusing the government of a “gigantic abuse and misappropriation of funds.”
The Polish prosecutor’s office has referred the investigation to the European Public Prosecutor’s Office, which will examine the aid’s destination. The case is a blow to Tusk, who came to power as Brussels’ trusted figure and the architect of the fund’s unfreezing but now faces his first major management scandal.
