WORLD / EUROPE
EU to cut funds for Poland over unpaid fine
Warsaw vows to appeal against move using ‘all possible legal means’
Published: Feb 09, 2022 05:38 PM
European Commission President Ursula Von der Leyen speaks during a press conference ahead of the G20 Summit and the UN Climate Change Conference (COP26) at the EU headquarters in Brussels on October 28, 2021.

European Commission President Ursula Von der Leyen speaks during a press conference ahead of the G20 Summit and the UN Climate Change Conference (COP26) at the EU headquarters in Brussels on October 28, 2021. "We need leadership for credible commitments for decarbonization to reach the goal of net-zero mid-century. But we also need sufficient commitments to really cut the emissions this decade," von der Leyen told reporters in Brussels. Photo: AFP

The European Commission said Tuesday it would take the unprecedented step of tapping into EU funding earmarked for Poland to collect a fine imposed on Warsaw for refusing to close a coal mine, one of several points of friction between Brussels and the eastern European nation.

EU Commission spokesman Balazs Ujvari said the EU had informed Poland of its decision, which will be carried out next week.

Polish government spokesman Piotr Muller said Warsaw would use "all possible legal means to appeal against this," Poland's PAP news agency reported.

The cut will amount to nearly 15 million euros ($17 million) for the period between September 20 and October 19 in 2021. The total unpaid fine amounts to around 70 million euros including interest, according to an AFP calculation. 

The row is the latest to afflict relations between Brussels and one of the EU's biggest members, already on a knife edge over controversial judicial reforms enacted by Poland's conservative government.

The Court of Justice of the European Union (CJEU) hit Poland with the 500,000 euro a day fine in September 2021 for refusing to comply with an order to close its Turow mine producing lignite, or brown coal.

Poland's neighbors, the Czech Republic and Germany, had complained of environmental damage from the mine, including groundwater pollution as well as dust and noise.

Last week, Poland signed a deal with the Czech Republic to end the dispute over the mine, which was confirmed by the court on Tuesday.

But that did not erase the fine, which Warsaw has insisted it will not pay.

Poland argues that decisions taken by the EU court violate the country's right to ensure its energy supply.

But the EU justice commissioner, Didier Reynders, insisted that the European Commission - the guardian of the EU treaties - must be seen to uphold the decisions of the EU court.

"If the member state does not pay, it is obvious that we must organize, as we have said from the start, the withholding of funds," he told AFP.

Ujvari said the levied amount covering the period September 20 to October 19 would be recovered from Poland's EU funding. That comes to 14.5 million euros plus interest, which takes it close to a total of 15 million euros.

Poland has been hit with another CJEU fine, of 1 million euros per day, for refusing to suspend a national Supreme Court chamber contested by Brussels.

The EU accuses Warsaw of undermining judicial independence and rolling back democratic norms.

There, too, the commission has warned it will recover the fine amount - currently over 100 million euros - from Poland's EU funding if it goes unpaid.

AFP