Council of theEuropean Union
Brussels, 14 June 2022
(OR. en)9728/22
Interinstitutional File:2022/0181 (NLE)ECOFIN 534
CADREFIN 95
UEM 139
FIN 594LEGISLATIVE ACTS AND OTHER INSTRUMENTS
Subject:

COUNCIL IMPLEMENTING DECISION on the approval of the assessmentof the recovery and resilience plan for Poland

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COUNCIL IMPLEMENTING DECISIONof …

on the approval of the assessment of the recovery and resilience plan for Poland

THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12
February 2021 establishing the Recovery and Resilience Facility1, and in particular Article 20
thereof,
Having regard to the proposal from the European Commission,

1

OJ L 57, 18.2.2021, p. 17.

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Whereas:(1)

The crisis caused by the COVID-19 pandemic has had a disruptive impact on the economy
of Poland. In 2019, the gross domestic product (GDP) per capita of Poland was 44,3 % of
the Union average. The real GDP of Poland declined by 2,2 % in 2020 and increased by
3,6 % cumulatively in 2020 and 2021. Long-standing aspects with an impact on mediumterm economic performance include low levels of private investment and innovation,
significant labour and skill shortages in the economy, and an unpredictable andburdensome regulatory environment.

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(2)

On 9 July 2019 and 20 July 2020, the Council addressed recommendations to Poland in thecontext of the European Semester. In particular, the Council recommended that Polandtake all necessary measures to: effectively address the economic impact of the COVID-19
pandemic, while safeguarding medium-term fiscal sustainability; improve the efficiency of
public spending; and improve the resilience, accessibility and effectiveness of the healthsystem. The Council also recommended that Poland take action to: ensure the adequacy of
future pension benefits and the sustainability of the pension system; increase labour market
participation by improving access to childcare and long-term care; remove remaining
obstacles to more permanent types of employment while enhancing flexible and short-timeworking arrangements; better target social benefits; foster quality education and skills,
especially through adult learning; improve digital skills; and further promote the digitaltransformation. Moreover, the Council recommended that Poland take action to strengthen
the innovative capacity of the economy, and to focus investment on the green and digitaltransition, in particular on digital infrastructure, clean and efficient production and use ofenergy, and sustainable transport, contributing to a progressive decarbonisation of theeconomy, taking into account regional disparities. In addition, the Council recommended
that Poland take action to secure access to finance and liquidity for companies and to foster
the economic recovery by front-loading mature public investment projects and promoting
private investment. Finally, the Council recommended that Poland take action to improve
the regulatory environment, in particular by strengthening the role of consultations ofsocial partners and public consultations in the legislative process, as well as to enhance theinvestment climate by safeguarding judicial independence. Having assessed progress in theimplementation of those country-specific recommendations at the time of Poland's
submission of its recovery and resilience plan (RRP), the Commission finds that therecommendations on effectively addressing the economic impact of the COVID-19
pandemic have been fully implemented.

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(3)

On 3 May 2021, Poland submitted its national RRP to the Commission, in accordance with
Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation
process, conducted in accordance with the national legal framework, involving local andregional authorities, social partners, civil society organisations, youth organisations andother relevant stakeholders. National ownership of the Member States’ RRPs underpins
their successful implementation and lasting impact at national level and credibility at
European level. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission has
assessed the relevance, effectiveness, efficiency and coherence of Poland's RRP, in
accordance with the assessment guidelines set out in Annex V to that Regulation.

(4)

The Members States’ RRPs should pursue the general objectives of the Recovery and
Resilience Facility established by Regulation (EU) 2021/241 (the 'Facility') and of theEuropean Union Recovery Instrument set up by Council Regulation (EU) 2020/20941 inorder to support the recovery in the aftermath of the COVID-19 crisis. They should
promote the Union’s economic, social and territorial cohesion by contributing to the six
pillars referred to in Article 3 of Regulation (EU) 2021/241.

(5)

The implementation of the Member States’ RRPs will constitute a coordinated effort
involving reforms and investments across the Union. Through their coordinated andsimultaneous implementation, and the implementation of cross-border and multi-country
projects, such reforms and investments will mutually reinforce each other and generate
positive spillovers across the Union. Approximately one third of the impact of the Facility
on Member States' growth and job creation will come from spillovers from other Member
States.

1

Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union
Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L
433 I , 22.12.2020, p. 23).

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Balanced response contributing to the six pillars(6)

In accordance with Article 19(3), point (a), of and Annex V, criterion 2.1, to Regulation(EU) 2021/241, Poland's RRP represents to a large extent (Rating A) a comprehensive andadequately balanced response to the economic and social situation, thereby contributing
appropriately to all six pillars referred to in Article 3 of that Regulation, taking into
account the specific challenges faced by, and the financial allocation for, Poland.

(7)

Poland's RRP envisages a balanced set of reforms and investments addressing both theimpact of the COVID-19 pandemic and the key structural challenges faced by Poland. It
presents a strategy for promoting a more competitive and resilient economy, supporting
economic growth in line with the Union’s climate and digital priorities and increasing thequality of life in Poland, in particular through investments in renewable energy sources andenergy efficiency, sustainable mobility, healthcare, digital technologies, and research andinnovation. Poland's RRP focuses on six key policy areas: green transition, digitalisation,
health, competitiveness and innovation, sustainable transport, and the quality of
institutions.

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(8)

The green transition and digital transformation of the economy are at the core of Poland’s
policy response. The envisaged green reforms and investments aim to increase renewableenergy production, including onshore, photovoltaics and offshore energy, smart grids andrenewable and low-carbon hydrogen, and energy efficiency, improving air quality anddeveloping sustainable transport. The digital reforms and investments focus on broadband
infrastructure, in particular in rural areas, developing e-services, including in the healthcare system, enhancing e-competences in education and training, and strengthening
national cybersecurity.

(9)

Poland's RRP includes a number of relevant measures to improve the business environment
and investment climate in Poland. The envisaged reforms aim to reduce the administrativeand regulatory burden on businesses and to improve public finance management, as well as
to enhance the role of public consultations in the law-making process, which is expected to
improve regulatory quality and stability. Poland's RRP also aims to raise the standard ofcertain aspects of judicial protection, thereby contributing to improving the investment
climate. Smart and sustainable growth is expected to be achieved also through various
measures in the area of research and innovation, and by improving the dissemination of
innovative solutions through education and training.

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(10)

Poland's RRP contributes to addressing a number of challenges in order to enhance
territorial and social cohesion, mainly through efforts to modernise and increase access to
hospital care, by addressing labour market challenges through improvements in vocational
education and training and lifelong learning, and finally through investments in transport.
Poland's RRP also includes various measures that are expected to enhance the resilience ofthe health and social system, for instance through hospital reforms, efforts to addresslabour market segmentation and long-term care, and investments in social housing. Finally,a significant part of Poland's RRP is dedicated to policies for the next generation, inparticular as regards digitalising education and training systems and improving the labour
market relevance of skills.

Addressing all or a significant subset of challenges identified in country-specific recommendations(11)

In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation(EU) 2021/241, Poland's RRP is expected to contribute to effectively addressing all or asignificant subset of challenges (Rating A) identified in the relevant country-specificrecommendations addressed to Poland, including fiscal aspects thereof, or challenges
identified in other relevant documents officially adopted by the Commission in the context
of the European Semester.

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(12)

The recommendations related to the immediate fiscal policy response to the COVID-19
pandemic and the recommendation to achieve the medium-term budgetary objective in2020 can be considered to fall outside the scope of Poland’s RRP as the corresponding
budgetary period has ended, but Poland has generally responded adequately andsufficiently to the immediate need to support the economy through fiscal means in 2020
and 2021, in line with the general escape clause of the Stability and Growth Pact.

(13)

Poland's RRP includes an extensive set of mutually reinforcing reforms and investmentsthat contribute to effectively addressing all or a significant subset of the economic andsocial challenges outlined in the country-specific recommendations addressed to Poland by
the Council in the European Semester in 2019 and 2020, in particular concerninginvestment needs in digitalisation and the green transition, as well as increasing labour
market participation and labour market relevance of education and training.

(14)

Significant reforms and investments in the energy sector are expected to support the
production and use of renewable energy and alternative fuels, improve energy efficiency
and adapt the economy to climate change. The measures contained in Poland's RRP are
also expected to contribute to improving the innovative capacity of the Polish economy,
moving it up the value chain, and accelerating the green and digital transitions bysupporting increased automation, the development and diffusion of environmental
technologies and enhanced cooperation between science and industry.

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(15)

Measures also respond to the impact and risks from the COVID-19 pandemic in the area of
healthcare as well as the pre-existing challenges faced by the Polish healthcare system, inparticular by a reform of public hospitals ensuring improvements in accessibility,
effectiveness and efficiency of healthcare and long-term care, development of digital
health services, and support to the pharmaceutical sector and for specialised medical
science research and analysis. Such a reform is likely to strengthen the resilience of thehealth system, in particular in view of the lessons learnt from the pandemic and theimportance of access to supply of medicines.

(16)

Poland's RRP presents a balanced response to recommendations to improve digital skills
and promote the digital transformation of companies and public administration, as well asof schools and vocational education. The RRP promotes digital skills for various
population groups and aims to establish the governance of digital skills development in
Poland. As for the digital transformation of public administration, a series of projects andlegislative changes are expected to promote the digitalisation of administrative processes,
which in turn is expected to boost the digitalisation of companies. Substantial investments
in better integration of Information and Communications Technologies in schools are set toenhance teaching and learning, as well as to support resilience and digital inclusion in
education. Poland's RRP also contributes to addressing important challenges to improve
the labour market relevance of skills and increase adult learning with targeted measures, inparticular through the creation of sectoral skills centres, in close cooperation witheconomic sectors and accompanied by reforms to embed them in the vocational educationand training system. With a focus on digital and green skills, those efforts are expected tocontribute to the better matching of education and training with the needs of the modern
economy.

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(17)

Poland's RRP includes actions that aim to address the challenges of sustainability oftransport, with specific measures to improve road safety, decarbonisation of road transport
including through the promotion of electromobility and hydrogen-powered transport,sustainable urban mobility, the modal shift towards railways, and intermodal transport. A
road safety reform and an investment linked to it aim to promote the enforcement of safety
rules and the protection of vulnerable people, thereby improving progress towards Poland’s
2030 target of reducing the number of deaths and serious injuries from road accidents by
50 %1. The decarbonisation of road transport is expected to be promoted by incentives forzero-emission vehicles and fiscal or financial measures in line with the "polluter pays"
principle, and by investments in clean public transport with a focus on sustainable urban
mobility. The reforms and investments in railways are focused on TEN-T sections andzero-emission rolling stock equipped with the European Rail Traffic Management System,
as well as the promotion of single e-ticketing.

(18)

Poland's RRP also includes measures that aim to address the challenges related to theadequacy of pension benefits and the sustainability of the pension system, as well as
challenges linked to labour market participation and segmentation. They are to beaddressed by increasing the quality and availability of childcare, by a review andsubsequent reform to improve long-term care policies, by tax incentives to prolong careersand increase the effective retirement age, and by a reform to increase social protection
under various work contracts.

1

Council conclusions of 8th June 2017 on road safety - endorsing the Valletta Declaration ofMarch 2017.

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(19)

Finally, Poland's RRP is expected to contribute to addressing challenges related to theinvestment climate, in particular with regard to the Polish judicial system and to decisionmaking and law-making processes. Reforms aim to improve the legislative process, mainly
by enhancing the use of public consultations and impact assessments in the law-making
process to ensure more structural involvement of stakeholders and experts in law-making.
Furthermore, the RRP aims to strengthen the independence and impartiality of courts. It
also aims to remedy the situation of judges affected by the decisions of the Disciplinary
Chamber of the Polish Supreme Court in disciplinary cases and judicial immunity cases,
with a view to their reinstatement following positive review proceedings by the new
Chamber, to be conducted without delay.

Contribution to growth potential, job creation and economic, social and institutional resilience(20)

In accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation(EU) 2021/241, Poland's RRP is expected to have a high impact (Rating A) on
strengthening the growth potential, job creation, and economic, social and institutional
resilience of Poland, contributing to the implementation of the European Pillar of Social
Rights, including through the promotion of policies for children and youth, and on the
mitigation of the economic and social impact of the COVID-19 crisis, thereby enhancing
the economic, social and territorial cohesion and convergence within the Union.

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(21)

Simulations by the Commission services show that Poland's RRP, together with the othermeasures under the European Union Recovery Instrument, has the potential to increase theGDP of Poland by 1,1 % to 1,8 % by 2026, not including the possible positive impact ofstructural reforms, which can be substantial. Public investments are expected to provide aboost to aggregate demand in the short to medium term, improving the cyclical position of
the Polish economy, and thereby contributing to a swift recovery. The focus of investmentson digitalisation, sustainable infrastructure and renewable energy projects is particularly
beneficial in this respect, supporting the green and digital transition and the long-termsustainability of the economy.

(22)

In the medium to long term, public investments, together with the planned reforms, may be
expected to help address the current potential growth challenges and develop the
economy’s capacity to innovate. That is expected to help Polish companies to move up in
global value chains. The implementation of Poland's RRP is therefore expected to raise thequality of potential output and to have a lasting impact on the economic performance of
Poland. Most of that long-term effect stems from measures increasing the competitivenessof the Polish economy, enhancing the development and diffusion of innovation, improving
the quality of regulation, and supporting businesses, in particular SMEs.

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(23)

Poland's RRP includes measures that aim to improve the resilience of the labour market, byimproving the quality and adequacy of the functioning of labour market institutions,reaching out to and activating older workers or people from disadvantaged groups throughupskilling and reskilling programmes, promoting flexible forms of employment,
contributing to improving the labour market participation of women through more flexible
forms of employment, including remote work, and increasing access to and quality of earlychildhood education and care. Poland's RRP also envisages incentives for workers toremain active in the labour market after reaching the statutory retirement age. Those
actions are in line with the principles of the European Pillar of Social Rights to support
inclusive growth. Efforts to improve the labour market relevance of education and training
are expected to be carried out through measures boosting human capital development andimproving the matching of skills and qualifications required by the labour market,
including in the context of new technologies. The digitalisation policy for education is
expected to contribute to preparing children and youth for the information society.
Dedicated measures relate to strengthening vocational education and training, lifelong
learning and supporting schools to prepare for the digital and green transformation, andcoordinating regional education and training policies to ensure that all parts of the country
adapt to modern labour market needs.

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(24)

Poland's RRP includes various interventions to contribute to the implementation of theEuropean Pillar of Social Rights through policies for children and youth. Reforms andinvestments are expected to improve access to quality childcare for children below the ageof three, and to promote the development of vocational education and training, higher
education and lifelong learning via the establishment of sectoral skills centres and a better
coordination of skills policies. In addition, the RRP focuses on the modernisation ofschools, including by setting up science, technology, engineering and mathematics(STEM) laboratories, which is expected to ensure the continuous adaptation to current
learning challenges, in particular digitalisation.

(25)

Measures to foster the green and digital transitions are expected to make the Polisheconomy more innovative and sustainable and be conducive to social resilience bybridging the divide between urban and rural areas. In particular, investments in thedevelopment of network infrastructure are expected to cover gaps ('white spots’) in
broadband access and the development of 5G technology in rural areas. Investments insustainable urban transport are expected to accelerate the green transition of cities byimplementing sustainable urban mobility plans and developing zero-emission public
transport in cities and at regional level. Investments in low and zero-emission rolling stockfor bus connections in areas with poor transport accessibility are expected to help connect
remote regions to centres of economic activity.

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Do no significant harm
(26)

In accordance with Article 19(3), point (d), of and Annex V, criterion 2.4, to Regulation(EU) 2021/241, Poland's RRP is expected to ensure that no measure for the implementationof reforms and investment projects included in that RRP does significant harm toenvironmental objectives (Rating A) within the meaning of Article 17 of Regulation (EU)2020/852 of the European Parliament and of the Council1 (the principle of ‘do no
significant harm’).

1

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020
on the establishment of a framework to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

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(27)

Poland has conducted an assessment of the measures set out in its RRP in accordance
withthe technical guidance provided in the Commission Notice entitled 'Technicalguidance on the application of "do no significant harm" under the Recovery and Resilience
Facility Regulation'1. Any potential harmful environmental impact of such relevantmeasures is expected to be addressed through relevant milestones and targets, ensuring thatthe applicable environmental criteria are met. Investments in gas-fired cogeneration andheat source replacement are expected to meet the greenhouse gas intensity thresholds
specified in that technical guidance. Investments in hydrogen technologies are expected tocomply with the greenhouse gas emission threshold set out in Commission DelegatedRegulation (EU) 2021/21392. Support for the installation of gas-fired boilers is expected to
be deployed as part of wider renovation programmes. Road and rail rolling stock is
expected to be subject to strict fuel efficiency requirements. Those requirements arereflected in milestones and targets for the respective measures.

1
2

OJ C 58, 18.2.2021, p. 1.
Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing
Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing
the technical screening criteria for determining the conditions under which an economic
activity qualifies as contributing substantially to climate change mitigation or climatechange adaptation and for determining whether that economic activity causes no significant
harm to any of the other environmental objectives ( OJ L 442, 9.12.2021, p. 1.).

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(28)

Particular attention has been paid to measures whose impact on environmental objectives
warrants close scrutiny. For measures that involve the support for water management
measures in rural areas, Poland is expected to favour climate-change resilient and naturebased solutions. Poland is expected to further ensure that no significant harm to theenvironment is done by excluding from such support any investment having a significant
impact on the status of water bodies or negative effects on nature. This aims in particular to
avoid any significant impact on the relevant water bodies that would jeopardise or delay
the objective of reaching a good status. It also aims to ensure that protected habitats andspecies are not negatively impacted by the measures.

Contribution to the green transition, including biodiversity(29)

In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation(EU) 2021/241, Poland's RRP contains measures that contribute to a large extent (RatingA) to the green transition, including biodiversity, or to addressing the challenges resulting
therefrom. The measures supporting climate objectives account for an amount which
represents 42,7 % of the RRP's total allocation calculated in accordance with themethodology set out in Annex VI to Regulation (EU) 2021/241. In accordance with Article
17 of that Regulation, the RRP is consistent with the information included in the National
Energy and Climate Plan 2021-2030.

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(30)

Reforms and investments in renewable energy sources, with the aim in particular ofsignificantly increasing the capacity of onshore wind and photovoltaics, the removal of
regulatory barriers to the development of new onshore wind capacity, and the development
of offshore wind capacity, hydrogen technologies and alternative fuels are expected to help
Poland achieve its 2030 climate and energy objectives in view of its long-term transition toa climate-neutral economy. The energy efficiency measures in Poland's RRP, including an
ambitious programme of building renovations, combined with the phasing-out of public
support for individual coal heaters, as well as an industry decarbonisation scheme, are also
expected to significantly help Poland achieve its climate and energy targets. A
comprehensive package of reforms and investments in transport is expected to support
electro-mobility, clean public transport of passengers, a modal shift towards zero-emission
railways, the intermodal transport of goods and road safety.

(31)

Reforms and investments related to sustainable water management in rural areas are
expected to help address the challenges Poland faces with respect to climate adaptation andto the low water retention and water shortages, including drinking water shortages. Suchreforms and investments are expected to contribute to increasing biodiversity and theadaptation capacity of rural areas to the effects of climate change, in particular drought.
The measures for climate mitigation may also be beneficial to the preservation of
biodiversity, as they are expected to rely on solutions restoring biodiversity.

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Contribution to the digital transition(32)

In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to Regulation(EU) 2021/241, Poland's RRP contains measures that contribute to a large extent (RatingA) to the digital transition or to addressing the challenges resulting from it. The measures
supporting digital objectives account for an amount which represents 21,3 % of the RRP's
total allocation, calculated in accordance with the methodology set out in Annex VII toRegulation (EU) 2021/241.

(33)

Reforms and investments in the public administration, the economy and society envisagedin Poland's RRP are expected to contribute to Poland's digital transformation. Those
include improving connectivity, updating laws and infrastructures of the public
administration systems, introducing electronic structured invoices and significantly
improving the cybersecurity systems in the government and the crucial economic sectors.
The digital transformation of the public administration is expected to incentivise theprivate sector to propel the digital transformation of companies.

(34)

Reforms and investments foreseen in the area of general and vocational education andtraining, skills and lifelong learning are expected to promote skills relevant for the labour
market and facilitate the digital and green transitions, while narrowing the digital divide
with more equal access to digital infrastructure, equipment and skills in schools and among
the population. They are also expected to contribute to a broader digitalisation of theeducation system and the development of digital skills of teachers, civil servants, citizens
with insufficient digital literacy and disadvantaged groups or people at risk of social
exclusion.

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Lasting impact(35)

In accordance with Article 19(3), point (g), of and Annex V, criterion 2.7, to Regulation(EU) 2021/241, Poland’s RRP is expected to have a lasting impact on that country to alarge extent (Rating A).

(36)

Poland’s RRP is expected to have a lasting impact in many policy areas as well as on
public administration and institutions. In particular, an ambitious reform to reduce
administrative and regulatory burden, a spatial planning reform, and reforms to improve
the quality of law-making by increasing the role of impact assessments and by ensuring
better involvement of stakeholders in the policy and law-making process are expected tohave a lasting impact on the quality of public administration. Furthermore, reforms that
aim to create a regulatory framework for the development of renewable energy sources, inparticular onshore and offshore wind farms, are expected to have a lasting impact on the
decarbonisation of the Polish economy. Reforms in health care are expected to enhance theeffectiveness and efficiency of the health care system and improve access to healthservices. Reforms on the labour market are expected to increase labour market
participation, increase social protection and reduce segmentation. Reforms to improvecoordination in the areas of vocational education and training, higher education andlifelong learning are set to have a lasting effect on the labour market relevance of skills andon providing opportunities for workers to adjust to labour market transitions.

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(37)

Various investments are set to support and enhance the impact of reforms in Poland’s RRP.
Sizeable investments in renewable energy, in particular off-shore wind farms withaccompanying infrastructure, and in sustainable transport (such as investments in zeroemissions mobility, sustainable urban mobility and railways to promote modal shift) are
expected to contribute to the decarbonisation of the Polish economy. Investments in largescale thermal modernisation and renovation are expected to help improve air quality andalleviate energy poverty, contributing to just transition and ensuring higher living
standards. Improving access to broadband internet in rural areas and investments incybersecurity and digital skills are expected to contribute to the digital transformation. An
ambitious anti-smog programme and investments in sustainable transport are expected toallow for achieving better air quality, with a lasting impact on lowering emissions andimproving quality of life. Healthcare reforms are supported by investments in hospitals andother care facilities. Investments in sectoral skills centres have the potential to achieve a
lasting impact on the labour market relevance of skills provision.

(38)

The lasting impact of Poland's RRP can also be enhanced through synergies between the
RRP and other programmes, including those financed by the cohesion policy funds, inparticular by addressing in a substantive manner territorial challenges and promoting abalanced development.

Monitoring and implementation(39)

In accordance with Article 19(3), point (h), of and Annex V, criterion 2.8, to Regulation(EU) 2021/241, the arrangements proposed in Poland's RRP are adequate (Rating A) toensure effective monitoring and implementation of the RRP, including the envisaged
timetable, milestones and targets, and the related indicators.

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(40)

Poland's RRP includes milestones and targets linked to reforms and investments associatedwith the request for non-repayable support, and to the additional reforms and investments
associated with the request for loans. The milestones and targets are clear and realistic, andthe proposed indicators are relevant, acceptable and robust. Milestones and targets are also
relevant for measures already completed which are eligible under Article 17(2) ofRegulation (EU) 2021/241. The satisfactory fulfilment of those milestones and targets overtime is required to justify a disbursement request. Poland has a comprehensive
implementation system. The Ministry of Funds and Regional Policy, as the central
coordinating body for the RRP and its implementation, is responsible for overall
coordination, monitoring and reporting and is the single point of contact for theCommission. That body is also responsible for producing the relevant payment requests,
management declarations and audit summaries. Audits will be carried out by the National
Revenue Administration, and in particular by the Department of Public Funds Audit at the
Ministry of Finance and 16 tax administration chambers (regional offices) within Poland.
Individual ministries, central government authorities and other entities mandated by thecompetent ministries will be responsible for the implementation of reforms andinvestments under the RRP. Poland will use a repository system for the monitoring andcontrol of the RRP and also for collecting, storing and ensuring access to data inaccordance with Article 22(2), point (d), of Regulation (EU) 2021/241.

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(41)

Member States should ensure that financial support under the Facility is communicated andacknowledged in line with Article 34 of Regulation (EU) 2021/241. Technical support may
be requested under the Technical Support Instrument established by Regulation (EU)2021/240 of the European Parliament and of the Council1 to assist Member States in theimplementation of their RRPs.

Costing(42)

In accordance with Article 19(3), point (i), of and Annex V, criterion 2.9, to Regulation(EU) 2021/241, the justification provided in Poland's RRP on the amount of the estimatedtotal costs of the RRP is to a medium extent (Rating B) reasonable and plausible, is in linewith the principle of cost efficiency and is commensurate to the expected national
economic and social impact.

(43)

Poland has provided cost estimates for all types of measures underits RRP that entail acost. Overall, the methodology and the assumptions used to reach the cost estimates areclear and understandable, very often based on previous projects financed by the cohesion
policy funds. In some cases, details on the methodology and assumptions used to make thecost estimates are limited, hindering a full positive assessment of the cost estimates. Poland
has also provided detailed supporting documentation for most types of interventions tounderpin the justification and the evidence of the cost estimates. Poland has provided
sufficient information and assurance to ensure that the costs of its RRP are not covered byother Union financing. Finally, the estimated total cost of the RRP is in line with theprinciple of cost-efficiency and is commensurate to the expected national economic andsocial impact.

1

Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February
2021 establishing a Technical Support Instrument (OJ L 57, 18.2.2021, p. 1).

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Protection of the financial interests of the Union(44)

In accordance with Article 19(3), point (j), of and Annex V, criterion 2.10, to Regulation(EU) 2021/241, the arrangements proposed in Poland's RRP and the additional measurescontained in this Decision are adequate (Rating A) to prevent, detect and correct
corruption, fraud and conflicts of interest when using the funds provided under that
Regulation, and the arrangements are expected to effectively avoid double funding underthat Regulation and other Union programmes. This is without prejudice to the applicationof other instruments and tools to promote and enforce compliance with Union law,
including for preventing, detecting and correcting corruption, fraud and conflicts ofinterest, and for protecting the Union budget in line with Regulation (EU, Euratom)
2020/2092 of the European Parliament and of the Council1.

1Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16
December 2020 on a general regime of conditionality for the protection of the Union budget(OJ L 433 I, 22.12.2020, p. 1).

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(45)

In accordance with Article 20(5), point (e), of Regulation (EU) 2021/241, milestones
linked to the protection of the financial interests of the Union should be set out in order toensure compliance with Article 22 of that Regulation. The satisfactory fulfilment of thosemilestones is expected to guarantee the adequacy of the internal control system, in
accordance with Article 19(3), point (j), of Regulation (EU) 2021/241. Taking into accountthat effective judicial protection is a prerequisite for the functioning of an internal control
system, milestones are set out for a reform strengthening the independence and impartialityof courts, a reform to remedy the situation of judges affected by the decisions of theDisciplinary Chamber of the Supreme Court in disciplinary cases and judicial immunity
cases, with a view to their reinstatement following positive review proceedings by the new
Chamber, to be conducted without delay, and a reform ensuring an effective audit andcontrol of Poland's RRP, including protection of the financial interests of the Union.
Taking into account that those milestones should be established also on the basis of Article
20(5), point (e), of Regulation (EU) 2021/241 to ensure the protection of the financial
interests of the Union and the establishment of an adequate control system before any
payment under the Facility is authorised by the Commission, Poland should fulfil thosemilestones before the submission of the first payment request and no payment under the
Facility may be made before their fulfilment. That requirement is without prejudice to
Poland's obligation to comply at all times with its obligations under Union law, inparticular Article 19(1) of the Treaty on the European Union (TEU), as interpreted by the
Court of Justice of the European Union, which constitutes a key component of the Union
acquis.

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(46)

To strengthen the independence and impartiality of courts and judges established by law inaccordance with Article 19 TEU, all disciplinary cases relating to judges should betransferred from the current Disciplinary Chamber of the Polish Supreme Court to anotherchamber of the same Court meeting the requirements of independence, impartiality andbeing established by law, as set out in Article 19(1) TEU. This means, inter alia, that thepersonal composition of the new chamber should be significantly different from thecomposition of the Disciplinary Chamber.

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(47)

To ensure that courts and judges are impartial and independent and established by law, in
accordance with Article 19 TEU, any judge, on the request of a party to a case or on his or
her own motion, should be able to initiate a verification of whether a court meets therequirements of independence, impartiality and being established by law, and such averification should not be classified as a disciplinary offence. Therefore, when raising suchan issue in a concrete case, a judge should neither be submitted to a disciplinary procedure
nor have his or her immunity lifted for having assessed compliance with thoserequirements, including by taking into consideration the circumstances in which theappointment of another judge took place. No provisions of national law should underminethat principle.

(48)

To the same end, the discretionary designation of competent disciplinary courts for cases
concerning judges should be circumscribed, based on objective criteria.

(49)

The assessment of the reform of the judiciary is based solely on the description of themeasure in Poland's RRP and does not rely on any legislative proposals that are subject tolegislative procedures in Poland. Therefore, the satisfactory fulfilment of the milestones ofthis Decision should be assessed based on the law in force at the time of the submission of
the first payment request.

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(50)

This Decision, approving the positive assessment of Poland's RRP by the Commission, inparticular on the corresponding milestones on the reform of the judiciary, is without
prejudice to any ongoing and future infringement proceedings and, more generally, to the
obligation of Poland to comply with Union law, in particular the rulings of the Court ofJustice of the European Union.

(51)

Poland has indicated that the information system for the European Structural andInvestment Funds will be used also for the purposes of the Facility. A specific milestone
should ensure that the information system for monitoring the implementation of the RRP is
put in place and operational by the time of the first payment request. In accordance with
Article 20(5), point (e), of Regulation (EU) 2021/241, Poland should implement thatmeasure in order to comply with Article 22 of that Regulation and confirm the status of its
implementation with the first payment request by means of a dedicated audit report. The
system should ensure, as a minimum, the following functionalities: (a) the collection ofdata and the monitoring of the achievement of milestones and targets; and (b) thecollection of, storage of and access to the data required by Article 22(2), point (d)(i) to(iii), of Regulation (EU) 2021/241, pursuant to its Article 22(2), point (e). Moreover, thesystem should provide all the necessary data for the use of the risk scoring and the data
mining tool, Arachne, by the Polish authorities for the audits and controls of the RRP.

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(52)

The system for the implementation of the RRP in Poland is described in an appropriate
way. It is coherently designed and based on robust processes and structures, so that roles
and responsibilities of the actors for controls and audits are clear, relevant control functions
are appropriately segregated and the independence of actors performing audits is ensured.
The central coordinating body for the implementation of Poland's RRP should be the
Ministry of Funds and Regional Policy. Individual ministries, central government
authorities and other entities mandated by the competent ministries will be responsible forthe implementation of reforms and investments under the RRP and audits should be carriedout by the national audit body. Management verifications are carried out by the institution
responsible for the implementation of each measure.

(53)

Specific measures should be implemented to check compliance with the rules relating to
public procurement, and to protect the financial interests of the Union. The National
Revenue Administration should carry out audits on an annual basis. However, frequency ofaudits relies on the frequency of the payment requests, in accordance with the audit
strategy. The audits should cover the system established for the reporting on milestones
and targets, the information system for monitoring the implementation of the RRP and
audits of operations, including the conditions for sound financial management.

Coherence of the RRP(54)

In accordance with Article 19(3), point (k), of and Annex V, criterion 2.11, to Regulation(EU) 2021/241, Poland's RRP includes to a high extent (Rating A) measures for the
implementation of reforms and public investment projects that represent coherent actions.

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(55)

Reforms and investments have been linked to the priority areas identified in Poland's RRP
and, on this basis, they have been structured in six complementary components of the RRP.
The overarching aim of the RRP is to increase the productivity of the Polish economy due
to a higher level of investment, an improved business environment, digital transformation,energy transition and clean smart mobility, and increased labour supply and social capital
based on the quality of education and skills. The RRP responds comprehensively to theconsequences of the COVID-19 crisis, as well as to a number of structural weaknesses of
the Polish economy. In particular, in the area of clean energy production, sustainabletransport and digitalisation, reforms and investments show a high degree of synergies andcomplementarity, for instance through reforms supporting the development of onshore andoffshore wind farms and the development of low-carbon hydrogen technologies as well as
promoting sustainable urban mobility and road safety. The same applies, to a certain
degree, to reforms and investments in labour market and education, which are expected toincrease labour market participation and modernise education and training. Some reforms
are expected to have a cross-cutting impact on the quality and effectiveness of legislationin all areas, such as reforms in the law-making process. Complementarities with support
under the cohesion policy funds are presented in the components of the RRP andsummarised within it.

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Equality(56)

Poland’s RRP describes the impact of the COVID-19 crisis and the challenges related togender equality and equal opportunities for all, in particular as regards labour market
needs. The RRP contains specific measures to address those challenges, such as measuresthat aim to increase the quality and availability of childcare facilities to facilitate the labour
market participation of women. Poland notes that a pre-screening of different projects wasmade on the basis of equality criteria and that certain projects that did not meet
accessibility criteria for persons with disabilities or that were otherwise not compliant withequality principles were not included in the RRP. Poland also notes that it is expected to beensured that the principles of gender equality and equal opportunities for all are to be taken
into account at every stage of the management and implementation of the RRP. Finally, themonitoring committee tasked with monitoring the effective implementation of the RRP
will in particular include representatives of bodies representing civil society and promoting
fundamental rights and non-discrimination.

Security self-assessment(57)

A security self-assessment has not been provided as it has not been considered appropriate
by Poland, in accordance with Article 18(4), point (g), of Regulation (EU) 2021/241.

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Cross-border and multi-country projects(58)

Poland plans a cross-border or multi-country project in the area of digitalisation.
Specifically, under the framework of the Important Projects of Common European Interest,
it intends to support investments through the Next Generation Cloud Infrastructure andServices project.

Consultation process(59)

Poland carried out stakeholder consultations through different platforms before thesubmission of its RRP. The public consultation of the RRP was launched on 26 February
2021 and lasted until 2 April 2021. In total, 5 275 contributions were made using a
dedicated form on the government website. In addition, comments were voiced inter alia
during three debates organised by the government and five public hearings led by social
partners. The RRP was also discussed by the Joint Government and Local Government
Commission (Komisja Wspólna Rządu i Samorządu Terytorialnego) and the Social
Dialogue Council. As a result of the consultations, changes were made to all componentsof the RRP.

(60)

To ensure ownership by the relevant actors, it is crucial to involve all local authorities andstakeholders concerned, including social partners, throughout the implementation of theinvestments and reforms included in the RRP. Poland commits in a milestone to creating amonitoring committee tasked with supervising the implementation of the measures under
the RRP, composed of social partners and other relevant stakeholders.

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Positive assessment(61)

Following the positive assessment of the Commission concerning Poland’s RRP with thefinding that the RRP satisfactorily complies with the criteria for assessment set out inRegulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that
Regulation, this Decision should set out the reforms and investment projects necessary forthe implementation of the RRP, the relevant milestones, targets and indicators, and theamount made available from the Union for the implementation of the RRP in the form of
non-repayable financial and loan support.

Financial contribution(62)

The estimated total cost of Poland'sRRP is PLN 160 967 579 300, which equals EUR 35
363 500 000 on the basis of the EUR PLN ECB reference rate of 3 May 2021. As the RRP
satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241
and, furthermore, as the amount of the estimated total costs of the RRP is higher than the
maximum financial contribution available for Poland, the financial contribution allocatedfor Poland’s RRP should be equal to the total amount of the financial contribution
available for Poland.

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(63)

In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the
maximum financial contribution for Poland is to be updated by 30 June 2022. As such, in
accordance with Article 23(1) of that Regulation, an amount for Poland not exceeding the
maximum financial contribution referred to in Article 11(1), point (a), of that Regulation
should be made available for a legal commitment by 31 December 2022. Where necessary
following the update of the maximum financial contribution, the Council, on a proposal
from the Commission, should amend this Decision to include the updated maximum
financial contribution, calculated in accordance with Article 11(2) of that Regulation,
without undue delay.

(64)

Furthermore, in order to support additional reforms and investments, Poland has requested
loan support. The maximum volume of the loan requested by Poland is less than 6,8 % of
its 2019 gross national income in current prices. The amount of the estimated total costs of
the RRP is higher than the combined financial contribution available for Poland and therequested loan support.

(65)

The support to be provided is to be financed from the borrowing by the Commission on
behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom)
2020/20531. The support should be paid in instalments once Poland has satisfactorily
fulfilled the relevant milestones and targets identified in relation to the implementation of
its RRP.

1

Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own
resources of the European Union and repealing Decision 2014/335/EU, Euratom (OJ L 424,
15.12.2020, p. 1).

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(66)

This Decision should be without prejudice to the outcome of any procedures relating to theaward of Union funds under any Union programme other than the Facility or to procedures
relating to distortions of the operation of the internal market that may be undertaken, inparticular under Articles 107 and 108 of the Treaty on the Functioning of the European
Union. It does not override the requirement for Member States to notify instances ofpotential State aid to the Commission under Article 108 of that Treaty,

HAS ADOPTED THIS DECISION:

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Article 1
Approval of the assessment of the RRP
The assessment of the RRP of Poland on the basis of the criteria provided for in Article 19(3) ofRegulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, thearrangements and timetable for the monitoring and implementation of the RRP, including therelevant milestones and targets and the additional milestones and targets related to the payment of
the loan, the relevant indicators relating to the fulfilment of the envisaged milestones and targets,and the arrangements for providing full access by the Commission to the underlying relevant data
are set out in the Annex to this Decision.

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Article 2
Financial contribution
1.

The Union shall make available to Poland a financial contribution in the form of nonrepayable support amounting to EUR 23 851 681 9241. An amount of EUR 20 270 784 381
shall be available to be legally committed by 31 December 2022. If the update provided forin Article 11(2) of Regulation (EU) 2021/241 results in an updated maximum financial
contribution for Poland that is equal to or more than EUR 23 851 681 924, a further
amount of EUR 3 580 897 543 shall be available to be legally committed from 1 January2023 until 31 December 2023. If the update provided for in Article 11(2) of Regulation(EU) 2021/241 results in an updated maximum financial contribution for Poland that is lessthan EUR 23 851 681 924, the difference between the updated maximum financial
contribution and the amount of EUR 20 270 784 381 shall be available to be legallycommitted in accordance with the procedure set out in Article 20(8) of Regulation (EU)2021/241 from 1 January 2023 until 31 December 2023.

1

This amount corresponds to the financial allocation after deduction of Poland’s proportional
share of the expenses referred to in Article 6(2) of Regulation (EU) 2021/241, calculated inaccordance with the methodology set out in Article 11 of that Regulation.

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2.

The Union financial contribution shall be made available by the Commission to Poland ininstalments in accordance with the Annex to this Decision. The instalments may be
disbursed by the Commission in one or several tranches. The size of the tranches shall be
subject to the availability of funding.

3.

The release of instalments in accordance with the agreement provided for in Article 23(1)of Regulation (EU) 2021/241 shall be conditional on available funding and a decision by
the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that
Poland has satisfactorily fulfilled the relevant milestones and targets identified in relation
to the implementation of the RRP. In order to be eligible for payment, Poland shallcomplete the milestones and targets no later than 31 August 2026, subject to the entry into
force of the legal commitments referred to in paragraph 1.

Article 3
Loan support
1.

The Union shall make available to Poland a loan amounting to a maximum of
EUR 11 506 500 000.

2.

The loan support shall be made available by the Commission to Poland in instalments inaccordance with the Annex to this Decision. The instalments may be disbursed by theCommission in one or several tranches. The size of the tranches shall be subject to theavailability of funding.

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3.

The release of instalments in accordance with the loan agreement provided for in Article
15(2) of Regulation (EU) 2021/241 shall be conditional on available funding and adecision by the Commission, taken in accordance with Article 24 of Regulation (EU)2021/241, that Poland has satisfactorily fulfilled the additional milestones and targets
covered by the loan and identified in relation to the implementation of the RRP. In order tobe eligible for payment, Poland shall complete the additional milestones and targets nolater than 31 August 2026.

Article 4
Addressee
This Decision is addressed to the Republic of Poland.
Done at Brussels,

For the Council
The President

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