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Poland Continues Chase After EU Funds Amid Disputes In Ruling Coalition

POLAND
  • Poland's efforts to secure EU recovery funds are gaining more traction, according to local press reports this morning. An official from the ruling Law and Justice Party told Rzeczpospolita that unblocking the funds is the "highest priority" and Prime Minister Morawiecki will be looking to pass necessary legislation with the help of opposition lawmakers and bypassing defiant junior coalition partner. Separately, a DGP piece suggests that Poland and the European Commission are looking for mutual guarantees which could help break the deadlock in their talks as early as this month. An Onet reporter tweeted this morning that the Commission has signed off on the "operational agreements" for Poland's National Recovery Plan, which is a necessary step towards unblocking the funds.
  • With tensions between Law and Justice (PiS) and its coalition partner Solidarna Polska still heightened, Superexpress reports that PiS has prepared a plan for severing ties with its uneasy ally. A PiS official told the newspaper that party leader Kaczynski considers allowing Prime Minister Morawiecki to remove Solidarna Polska from the government and lead a minority administration into next year's election, once the 2023 budget bill is approved.
  • Members of the hawkish camp in the central bank's MPC gave interviews last Friday. Speaking after hours, Joanna Tyrowicz told Biznes24 that "there's absolutely no room for discussions about cutting interest rates."
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