European Commission approves 7.9 billion euro KPO payment to Poland, funds expected in October

European Commission approves payment

On Monday, 10 August, the European Commission issued a positive assessment of Poland's payment request under the National Recovery Plan (KPO), worth 7.9 billion euro (approximately 33 billion zł). Poland submitted the request on 19 June. Deputy Minister of Funds Jan Szyszko announced that the money should physically reach Poland at the beginning of October. Sources disagree on which payment request this represents: portalsamorzadowy.pl describes it as the eighth request and the second-to-last disbursement, while most other outlets call it the fifth request.

Following the positive opinion, the European Commission must, per procedure, request an evaluation from member state representatives, who have one month to respond. The final assessment will be issued by the Economic and Financial Committee, an advisory EU body responsible for coordinating economic and financial policies, in which experts from member states sit. The approved payment will raise total KPO funds disbursed to Poland to 42 billion euro, or 76.85% of the overall allocation. The Commission stated that Poland has fulfilled nearly 72% of all milestones and targets defined in the plan.

Conditions and investments fulfilled

One prerequisite for the payment was the distribution of laptop vouchers to teachers under the "Laptop for Teacher" program. Over 500,000 Polish teachers, more than 65% of the teaching staff nationwide, received vouchers worth 2,500 zł each for the purchase of portable computers. Additionally, 16,500 primary and secondary schools were equipped with laptops and tablets for educational purposes, intended to strengthen school resilience against disruptions such as the Covid-19 pandemic, during which classes were conducted remotely.

The payment request also accounted for the purchase of 88 trams for Kraków, Poznań, and Wrocław. Poland adopted a space activity law promoting the use of satellite data, and amended the Energy Law to introduce uniform rules for connecting to the power grid across the entire country. The amendment requires publication of available connection capacity data and enables electronic submission of connection applications. Support was also directed toward smart electricity transmission infrastructure, including a data center for the electricity market.

KPO totals and utilization

Poland's total KPO allocation stands at 54.72 billion euro, comprising 25.28 billion euro in non-repayable grants and 29.44 billion euro in preferential loans.

According to the Ministry of Funds and Regional Policy, over 1.1 million contracts with beneficiaries have been signed. The reported value differs slightly between sources: 231.9 billion zł (96.3% of the budget) per one source, or 232.4 billion zł (96.5%) per another. The ministry estimates that approximately 100 billion zł will flow into the Polish economy over the coming months. KPO-funded achievements include over 26,000 new places in nurseries and children's clubs, and broadband internet delivered to approximately 261,500 households.

The European Commission also approved the final revision of Poland's plan, shifting some funds toward investments with better prospects for timely completion, including rail fleet modernization, expansion of power grids, and digitalization of enterprises. Physical implementation of KPO-funded investments must be completed by 31 August 2026. One final payment request is scheduled for submission in September 2026, with further payments expected in 2027.

HoReCa spending controversy

The payment comes against the backdrop of a scandal that emerged last year over KPO spending by businesses in the HoReCa sector (hotel, restaurant, and catering). Funded projects included a pizza restaurant expansion adding a solarium, mobile coffee espresso machines, and a houseboat for business meetings. One company received 300,000 zł for introducing "new ice cream products" to its offering. A government website showing a map of funded projects allows users to review individual grants, with some entries drawing surprise.