This Decision is addressed to the Republic of Poland.

3.The release of instalments in accordance with the Loan Agreement 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 additional milestones and targets covered by the loan and identified in relation to the implementation of the RRP. In order to be eligible for payment, Poland shall complete the additional milestones and targets no later than 31 August 2026.

2.The loan support shall be made available by the Commission to Poland in instalments 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.

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

3.The release of instalments in accordance with the financing agreement 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 shall complete 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.

2.The Union financial contribution shall be made available by the Commission to Poland in instalments 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.

1.The Union shall make available to Poland a financial contribution in the form of non-repayable support amounting to EUR 23 851 681 924. An amount of EUR 20 270 784 381 shall be available to be legally committed by 31 December 2022. 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 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 January 2023 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 less than 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 legally committed in accordance with the procedure set out in Article 20(8) of Regulation (EU) 2021/241 from 1 January 2023 until 31 December 2023.

The assessment of the RRP of Poland on the basis of the criteria provided for in Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, including the relevant 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.

(65)This Decision should be without prejudice to the outcome of any procedures relating to the award 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, in particular 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 of potential State aid to the Commission under Article 108 of that Treaty,

(64)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) 2020/2053. The support should be paid in instalments once Poland has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the RRP.

(63)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 the requested loan support.

(62)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 now 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.

(61)The estimated total cost of the recovery and resilience plan of Poland 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 allocated for Poland’s RRP should be equal to the total amount of the financial contribution available for Poland.

(60)Following the positive assessment of the Commission concerning Poland’s RRP with the finding that the RRP satisfactorily complies with the criteria for assessment set out in Regulation (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 for the implementation of the RRP, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the RRP in the form of non-repayable financial and loan support.

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

(58)Poland carried out stakeholder consultations through different platforms before the submission 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 in 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 components of the RRP.

(57)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 (IPCEI), it intends to support investments through the Next Generation Cloud Infrastructure and Services project.

(56)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.

(55)Poland’s RRP describes the impacts of the COVID-19 crisis and challenges related to gender equality and equal opportunities for all, in particular as regards labour market needs. The RRP contains specific measures to address those challenges, such as measures aiming 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 was made on the basis of equality criteria and that certain projects that did not meet accessibility criteria for persons with disabilities or were otherwise not compliant with equality principles were not included in the RRP. Poland also notes that it is expected to be ensured 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, the monitoring committee tasked with monitoring the effective implementation of the RRP will notably include representatives of bodies representing the civil society and promoting fundamental rights and non-discrimination.

(54)Reforms and investments have been linked to the priority areas identified in the 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 plan responds comprehensively to the consequences 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, sustainable transport and digitalisation, reforms and investments show a high degree of synergies and complementarity, for instance through reforms supporting the development of onshore and offshore 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 to increase labour market participation and modernise education and training. Some reforms are expected to have a cross-cutting impact on the quality and effectiveness of legislation in 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 and summarised at the level of the plan.

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

(52)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 of audits 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 RRF and audits of operations, including the conditions for sound financial management.

(51)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 the 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 for the implementation of reforms and investments under the RRP and audits should be carried out by the national audit body. Management verifications are carried out by the institution responsible for the implementation of each measure.

(50)Poland has indicated that the information system for the European Structural and Investment Funds will be used also for the purposes of the RRF. A specific milestone should ensure that the information system for monitoring the implementation of the RRF 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 this measure 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 include, as a minimum, the following functionalities: (a) ensure the collection of data and the monitoring of the achievement of milestones and targets; and (b) collect, store and ensure access to the data required by Article 22(2)(d)(i) to (iii) of Regulation (EU) 2021/241, pursuant to its Article 22(2)(e). Moreover, the system 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.

(49)This Decision, approving the positive assessment of the RRP by the Commission, in particular 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 and, in particular, the rulings of the Court of Justice.

(48)The assessment of the reform of the judiciary is based solely on the description of the measure in the plan and does not rely on any legislative proposals that are subject to legislative procedures in Poland. Therefore, the satisfactory fulfilment of the milestones of this Decision should be assessed based on the law in force at the time of the submission of the first payment request.

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

(46)To ensure that courts and judges are impartial and independent and established by law, in accordance with Article 19 TEU, any judge, on request of a party to the case or on their own motion, should be able to initiate the verification whether a court meets the requirements of being independent, impartial and ‘being established by law’, and this verification is expected not to be classified as a disciplinary offence. This entails that, when raising such an issue in a concrete case, any judge should neither be submitted to a disciplinary procedure nor have their immunity lifted for having assessed compliance with these requirements, including by taking into consideration the circumstances in which the appointment of another judge took place. No provisions of national law are expected to undermine this principle.

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

(44)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 to ensure compliance with Article 22 of that Regulation. The satisfactory fulfilment of those milestones 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 account that 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 impartiality of courts, a reform to remedy the situation of judges affected by the decisions of the Disciplinary 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 and control of the 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 those milestones before the submission of the first payment request and no payment under the Facility may be made before their fulfilment. This requirement is without prejudice to the obligation of Poland to comply at any time with its obligations under Union law, in particular 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 EU acquis.

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

Protection of the financial interests of the Union

(42)Poland has provided cost estimates for all types of measures of the RRP, which entail a cost. Overall, the methodology and the assumptions used to reach the cost estimates are clear 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 the cost estimates are limited, hindering a full positive assessment of the cost estimates. Poland has also provided detailed supporting documentation for most types of interventions to underpin the justification and the evidence of the cost estimates. Poland has provided sufficient information and assurance to ensure that the costs of the RRP are not covered by other Union financing. Finally, the estimated total cost of the RRP is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

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

(40)Member States should ensure that financial support under the Facility is communicated and acknowledged 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 Council to assist Member States in the implementation of their RRPs.

(39)The plan includes milestones and targets linked to reforms and investments associated request for non-repayable support, and to the additional reforms and investments associated request for loans. The milestones and targets are clear and realistic, and the proposed indicators are relevant, acceptable and robust. Milestones and targets are also relevant for measures already completed which are eligible under Article 17(2) of Regulation (EU) 2021/241. The satisfactory fulfilment of these milestones and targets over time 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 the Commission. This body is also responsible for drawing-up of the payment requests, management declarations and summary of audits. Audits will be carried out by the National Revenue Administration, in particular by the Department of Public Funds Audit at the Ministry of Finance and 16 tax administration chambers (regional offices) in the country. Individual ministries, central government authorities and other entities mandated by the competent ministries will be responsible for the implementation of reforms and investments under the RRP. Poland will use a repository system for the monitoring and control of the RRP and also for collecting, storing and ensuring access to data in accordance with Article 22(2)(d) of Regulation (EU) 2021/241.

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

(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 with accompanying infrastructure, and in sustainable transport (such as investments in zero-emissions mobility, sustainable urban mobility and railways to promote modal shift) are expected to contribute to the decarbonisation of the Polish economy. Investments in large-scale thermal modernisation and renovation are expected to help improve air quality and alleviate energy poverty, contributing to just transition and ensuring higher living standards. Improving access to internet in rural areas and investments in cybersecurity and digital skills are expected to contribute to the digital transformation. An ambitious anti-smog programme and investments in sustainable transport are expected to allow for achieving better air quality, with a lasting impact on lowering emissions and improving quality of life. Healthcare reforms are supported by investments in hospitals and other care facilities. Investments in sectoral skills centres have the potential to achieve a lasting impact on the labour market relevance of skills provision. The lasting impact of the RRP can also be enhanced through synergies between the RRP and other programmes, including those financed by the cohesion policy funds, in particular by addressing in a substantive manner territorial challenges and promoting a balanced development.

(36)Poland’s RRP is expected to have a lasting impact in many policy areas as well as on public administration and institutions. Notably, 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 to have a lasting impact on the quality of public administration. Furthermore, reforms aimed to create a regulatory framework for the development of renewable energy sources, in particular 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 the effectiveness and efficiency of the health care system and improve access to health services. Reforms on the labour market are expected to increase labour market participation, increase social protection and reduce segmentation. Reforms to in the areas of vocational education and training, higher education and lifelong learning are set to have a lasting effect on the labour market relevance of skills and on providing opportunities for workers to adjust to labour market transitions.

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

(34)Reforms and investments foreseen in the area of general and vocational education and training, 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 the education 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.

(33)Reforms and investments in the public administration, the economy and society envisaged in the RRP are expected to contribute to the digital transformation of the country. These 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 the private sector to propel the digital transformation of companies.

(32)In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) 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 to that Regulation.

(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 and to the low water retention and water shortages, including drinking water shortages. They are expected to contribute to increasing biodiversity and the adaptation 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.

(30)Reforms and investments in renewable energy sources, aimed notably at significantly increasing the capacity of onshore wind and photovoltaics, removing regulatory barriers to the development of new onshore wind capacity, developing 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 to a climate-neutral economy. The energy efficiency measures in the plan, including an ambitious programme of building renovations, combined with a phase-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, modal shift towards zero-emission railways, intermodal transport of goods, as well as road safety.

(29)In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) 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 the methodology set out in Annex VI to that Regulation. 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.

(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 nature-based solutions. Poland is expected to further ensure that no significant harm to the environment is done by excluding from the 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 and species are not negatively impacted by the measures.

(27)Poland has conducted an assessment of the measures of the RRP in accordance with the methodology set out in the Commission’s Technical guidance on the application of ‘do no significant harm’ under the Recovery and Resilience Facility Regulation (2021/C 58/01). The potential harmful environmental impact of all relevant measures is expected to be addressed through relevant milestones and targets, ensuring that the applicable environmental criteria are met. Investments in gas-fired cogeneration and heat source replacement are expected to meet the greenhouse gas intensity thresholds specified in the Commission’s Technical guidance. Investments in hydrogen technologies are expected to comply with the greenhouse gas emission threshold set out in the Commission Delegated Regulation to Regulation (EU) 2020/852 of the European Parliament and of the Council. Support to 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 are reflected in milestones and targets for the respective measures.

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

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

(24)The RRP includes various interventions to contribute to the implementation of the European Pillar of Social Rights through policies for children and the youth. Reforms and investments are expected to improve access to quality childcare for children below the age of three, and promoting 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 of schools, 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.

(23)The RRP include measures that aim at improving the resilience of the labour market, by improving the quality and adequacy of the functioning of labour market institutions, reaching out to and activating older workers or people from disadvantaged groups through upskilling 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 early childhood education and care. The RRP also envisages incentives to remain 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 and improving the matching of skills and qualifications required by the labour market, also 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, and coordinating regional education and training policies to ensure that all parts of the country adapt to modern labour market needs.

(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. This is expected to help the Polish companies to move up in global value chains. The implementation of the RRP is therefore expected to raise the quality of potential output and to have a lasting impact on the economic performance of Poland. Most of this long-term effect stems from measures increasing the competitiveness of the Polish economy, enhancing the development and diffusion of innovation, improving the quality of regulation, and supporting businesses, in particular SMEs.

(21)Simulations by the Commission services show that the RRP, together with the rest of measures of the European Union Recovery Instrument, has the potential to increase the GDP of Poland by between 1,1% and 1,8% by 2026, not including the possible positive impact of structural reforms, which can be substantial. Public investments are expected to provide a boost 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 investments on digitalisation, sustainable infrastructure, and renewable energy projects is particularly beneficial in this respect, supporting the green and digital transition and the long-term sustainability of the economy.

(20)In accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation (EU) 2021/241, the 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 mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(19)Finally, the RRP is expected to contribute to addressing challenges related to the investment climate, notably with regard to the Polish judicial system as well as decision- 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.

(18)The RRP also includes measures aimed at addressing the challenges related to the adequacy of pension benefits and the sustainability of the pension system, as well as challenges linked to labour market participation and segmentation. They are to be addressed by increasing the quality and availability of childcare, with a review and subsequent reform to improve long-term care policies, with tax incentives to prolong careers and increase the effective retirement age as well as via a reform to increase social protection under various work contracts.

(17)The RRP includes actions that aim at addressing the challenges of sustainability of transport, 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 at promoting the enforcement of safety rules and the protection of vulnerable people, thereby progressing towards Poland’s 2030 target of reducing the number of deaths and serious injuries from road accidents by 50%. The decarbonisation of road transport is expected to be promoted by incentives for zero-emission vehicles and fiscal or financial measures in line with the polluter pays principle, and investments in clean public transport with focus on sustainable urban mobility. The reforms and investments in railways are focused on TEN-T sections and zero-emission rolling stock equipped with the European Rail Traffic Management System (ERTMS), as well as the promotion of single e-ticketing.

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

(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, notably by a reform of public hospitals ensuring improvements in accessibility, effectiveness and efficiency of healthcare and long-term care, development of digital health services, support to the pharmaceutical sector and for specialised medical science research and analysis. This is likely to strengthen the resilience of the health system, especially in view of the lessons learnt from the pandemic and the importance of access to supply of medicines.

(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 the RRP are also expected to contribute to improving the innovative capacity of the Polish economy, moving it up in the value chain, and accelerating the green and digital transitions by supporting increased automation, the development and diffusion of environmental technologies and enhanced cooperation between science and industry.

(13)The RRP includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Poland by the Council in the European Semester in 2019 and in 2020, notably concerning investment needs in digitalisation and the green transition, as well as increasing labour market participation and labour market relevance of education and training.

(12)The recommendations related to the immediate fiscal policy response to the pandemic and the recommendation to achieve the medium-term budgetary objective in 2020 can be considered to fall outside the scope of Poland’s RRP due to the lapsing of the corresponding budgetary period, but Poland has generally responded adequately and sufficiently 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.

(11)In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation (EU) 2021/241, the RRP is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations 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.

(10)The RRP contributes to addressing a number of challenges 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. The RRP also includes various measures that are expected to enhance the resilience of the health and social system, for instance through hospital reforms, efforts to address labour market segmentation and long-term care, and investments in social housing. Finally, a significant part of the RRP is dedicated to policies for the next generation, in particular by digitalising education and training systems and improving the labour market relevance of skills.

(9)The RRP includes a number of relevant measures to improve the business environment and investment climate in Poland. The envisaged reforms aim to reduce the administrative and regulatory burden to businesses, 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. The plan also aims to raise the standard on certain 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.

(8)The green transition and digital transformation of the economy are at the core of the RRP’s policy response. The envisaged green reforms and investments aim at increasing renewable energy production, including onshore, photovoltaics and offshore energy, smart grids and renewable and low-carbon hydrogen, and energy efficiency, improving air quality and developing sustainable transport. The digital reforms and investments focus on broadband infrastructure, in particular in rural areas, developing e-services, including in the health care system, enhancing e-competences in education and training and strengthening national cybersecurity.

(7)The RRP envisages a balanced set of reforms and investments addressing both the impact of the COVID-19 pandemic and the key structural challenges that Poland faces. It presents a strategy for promoting a more competitive and resilient economy, supporting economic growth in line with EU’s climate and digital priorities and increasing the quality of life in Poland, notably through investments in renewable energy sources and energy efficiency, sustainable mobility, healthcare, digital technologies, and research and innovation. The RRP focuses on six key policy areas: green transition, digitalisation, health, competitiveness and innovation, sustainable transport, and the quality of institutions.

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

(5)The implementation of the Member States’ RRPs will constitute a coordinated effort involving reforms and investments across the Union. Through coordinated and simultaneous 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. Therefore, about one third of the impact of the Facility on Member States' growth and job creation will come from spillovers from Member States.

(4)The RRPs should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 (the 'Facility') and of the European Union Recovery Instrument set up by Council Regulation (EU) 2020/2094 in order 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.

(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 and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. National ownership of the 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 the RRP, in accordance with the assessment guidelines set out in Annex V to that Regulation.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Poland in the context of the European Semester. In particular, the Council recommended Poland to take all necessary measures to effectively address the economic impact of the pandemic, while safeguarding medium-term fiscal sustainability; to improve the efficiency of public spending; and to improve the resilience, accessibility and effectiveness of the health system. The Council also recommended Poland to ensure the adequacy of future pension benefits and the sustainability of the pension system; to increase labour market participation by improving access to childcare and long-term care; to remove remaining obstacles to more permanent types of employment while enhancing flexible and short-time working arrangements; to better target social benefits; to foster quality education and skills, especially through adult learning; to improve digital skills and further promote the digital transformation. Moreover, the Council recommended to strengthen the innovative capacity of the economy; and to focus investment on the green and digital transition, in particular on digital infrastructure, clean and efficient production and use of energy, and sustainable transport, contributing to a progressive decarbonisation of the economy, taking into account regional disparities. In addition, the Council recommended 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 to improve the regulatory environment, in particular by strengthening the role of consultations of social partners and public consultations in the legislative process, as well as to enhance the investment climate by safeguarding judicial independence. Having assessed progress in the implementation of these country-specific recommendations at the time of submission of the recovery and resilience plan ('RRP'), the Commission finds that the recommendations on effectively addressing the economic impact of the pandemic have been fully implemented.

(1)The COVID-19 outbreak 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 medium-term economic performance include low levels of private investment and innovation; significant labour and skill shortages in the economy; and an unpredictable and burdensome regulatory environment.

Having regard to the proposal from the European Commission,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility and in particular Article 20 thereof,

Having regard to the Treaty on the Functioning of the European Union,

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

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

EUROPEAN COMMISSION Brussels, 1.6.2022 COM(2022) 268 final ANNEXES

to the Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Poland {SWD(2022) 161 final}



ANNEX SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN 1. Description of Reforms and Investments A. COMPONENT A: ‘RESILIENCE AND COMPETITIVENESS OF THE ECONOMY’ This component of the Polish Recovery and Resilience plan contributes to addressing several challenges related to the resilience and competitiveness of the Polish economy. The first overarching challenge is linked to the investment climate and business environment, which have been hindered in recent years by regulatory deficiencies, burdensome administrative requirements and procedures, and frequent changes to key laws. Second, Poland has yet to increase its innovation capacity to upgrade its growth model from cost-competitiveness towards sustainability and higher value-added activities. Total Research and Development (R&D) expenditure remains low at 1,4% of GDP vs. 2,3% in the EU in 2020. Although business expenditure on R&D has more than quadrupled in the past ten years, it remains below the EU average. Third, the digital transformation and other economic transitions require efforts to improve the labour market relevance of skills and modernisation of vocational education and training. Fourth, women, older people, persons with disabilities, and those with lower qualifications participate in the labour market much less than in many other EU countries. This results from several factors, including a limited access to childcare and long-term care, as well as a low statutory and effective retirement age. Moreover, labour market flexibility is limited by special pension regimes and a lack of flexibility in working-time arrangements. Finally, the share of temporary employment contracts remains high, even though it has been consistently declining. The main objective of the component is to boost investment, increase productivity, and enhance the competitiveness and resilience of the Polish economy. To that end, the component aims at the following: i) strengthen the sustainability and adequacy of the fiscal framework; ii) reduce regulatory and administrative burden to businesses and entrepreneurs; iii) support the digital and green transition and the resilience of key sectors of the economy, including the agri-food sector; iv) improve the innovation ecosystem; v) foster the labour market relevance of skills and improve lifelong learning; vi) increase labour market participation and increase the effective retirement age; vii) improve access to and the quality of childcare for children below the age of 3 and viii) increase the effectiveness of public employment services. The component addresses the following Country-Specific Recommendations issued for Poland in the framework of the European Semester in 2019 and 2020, notably: Country Specific Recommendations 3, 2019 and 4, 2020 related to improving the investment climate and regulatory environment, in particular by strengthening the role of public consultations in the legislative process. The component further addresses: Country-Specific Recommendations 1, 2019 and 1, 2020 regarding improving the efficiency of public spending and the budgetary process as well as supporting through public measures the economic recovery; Country-Specific Recommendation 2, 2019 related to the adequacy of future pension benefits and the sustainability of the pension system, in particular by taking measures to increase the effective retirement age, as well as to take steps to increase labour market participation, including by improving access to childcare and long-term care, and remove remaining obstacles to more permanent types of employment, and finally through measures to increase the labour market relevance of skills and improve lifelong learning; Country-Specific Recommendation 3, 2019 by strengthening the innovative capacity of the economy, including by supporting research institutions and their closer collaboration with business. It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C 58/01). A.1. Description of the reforms and investments for non-repayable financial support Sub-component A1 – Reducing the impact of COVID-19 on businesses A1.1 Reform of the fiscal framework The overarching objective of the reform is to increase the transparency and efficiency of public spending. To that end, the reform aims at: (i) enabling a more efficient management of public funds; (ii) enhancing the accountability in the management of public funds; (iii) increasing the sustainability of public finances and preventing an unsustainable increase of expenditure. The reform shall consist of the implementation of two legislative measures. First, the Act on Public Finances shall be amended by including a new classification system, a new model of budget management and a redefined medium-term budgetary framework. A new budgetary system shall be established as a result of the amendment. Secondly, the Act on Public Finances shall be amended by extending the scope of the Stabilising Expenditure Rule to more units of general government, specifically special-purpose funds. The implementation of the reform shall be completed by 31 March 2025.

A1.2 Reduce regulatory and administrative burden The overarching objective of the reform is to reduce the administrative and regulatory burden affecting businesses in Poland, as well as to foster private investment, particularly in SMEs. To that end, the reform aims at (i) simplifying administrative and legal procedures, (ii) minimising legal requirements for businesses and entrepreneurs, (iii) speeding up decision-making, (iv) providing the right conditions for businesses to invest, especially in less developed regions; and (v) facilitating the communication between citizens and businesses with public authorities. The reform shall consist of two legislative packages. The first one (‘Legal shield’: Tarcza prawna) shall introduce the following legal provisions: (i) make electronic procedures the dominant channel for dealing with at least eight administrative and legal procedures, including submissions of declarations by tourist operators and entrepreneurs to the Insurance Guarantee Fund; (ii) simplify administrative procedures, in particular related to the seafarer’s professions and trade and commerce of alcoholic beverages; (iii) reduce the use of the two-instance procedure in at least ten procedures related in particular to geological resources; (iv) limit the number of documents and formalities required in administrative procedures in, for example, spatial planning and construction processes; and (v) prolong the deadlines for certain administrative procedures, for instance, for registering a car bought in another Member State. The second legislative package shall amend the ‘Investment Zone Act’ (‘Polska Strefa Inwestycji’) to increase the number of areas defined as ‘special economic zones’ in Poland and create a new model for granting financial support to businesses undertaking activities in special economic zones, mainly in the form of tax breaks and subsidies for the purchasing of investment land. The implementation of the reform shall be completed by 31 December 2023. A1.2.1 Investments for enterprises in products, services and competences of employees and staff related to the diversification of activities The overarching objective of this investment is to support the resilience of SMEs and micro-enterprises in the sectors most affected by the COVID-19 pandemic in Poland, namely in the sectors of HoReCa, tourism and culture. To that end, the investments shall aim to encourage the upscaling and diversification of the activities carried out by SMEs and micro-enterprises in these sectors. The investment shall consist of the implementation of the following three types of activities: -Investments in the design and production of their goods and services, such as: (i) purchase of machinery and equipment necessary to launch new products / services; (ii) construction works, including the construction of new production lines; (iii) investments related to the green transition, particularly to encourage waste prevention by design, recycling/reuse of waste and to implement renewable energy solutions; -Consulting services for the implementation of projects; -Upskilling/reskilling employees by providing training in the field of new IT solutions, new technologies, customer needs analysis, information / data management, as well as risk-management. The measure shall ensure a balanced implementation of all the types of projects described, considering both the specific needs of beneficiaries and the objectives of the RRF Regulation. The implementation of the investment shall be completed by 30 June 2026. A1.2.2 Support for the preparation of investment sites for investments of key importance for the economy The overarching objective of this investment is to expand the number of investment sites in Poland, i.e. areas zoned and built for the purpose of industrial and business development. To that end, the investment shall build at least 4200 hectares of investment areas. The investments shall consist of (i) land consolidation and – in exceptional cases – land acquisition, (ii) the construction of necessary infrastructure, including the construction of facilities for businesses to carry out their activities, (iii) the construction of utilities infrastructure, namely water, gas and energy connections, (iv) as well as the provision of technical support to regional and local authorities. The investment shall largely take place in medium-sized cities lagging behind in terms of economic development. It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C 58/01). This includes, inter alia, that:

-at least 70% (by weight) of the non-hazardous construction and demolition generated on the construction site shall be prepared for re-use, recycling and other material recovery, including backfilling operations using waste to substitute other materials, in accordance with the waste hierarchy and the EU Construction and Demolition Waste Management Protocol. -The construction of transmission and distribution infrastructure of gaseous fuels shall, at the time of construction, enable the transport of renewable and low-carbon gases. -The construction of new buildings shall be in compliance with the Near Zero-Energy Buildings, as set out in the Energy Performance of Buildings Directive (Directive 2018/844/EU). -The eligibility criteria for projects to be part of the investment sites shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use, (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation may be selected. -Finally, the investment sites shall ensure that adequate safeguards are in place to avoid harm to the biodiversity objective. In particular, the establishment of the investment sites shall be carried out in full compliance with the EIA Directive (Directive 2014/52/EU), the Habitats Directive (Directive 92/43/EEC), and the Birds Directive (Directive 2009/147/EC). The implementation of the investment shall be completed by 31 December 2025. A1.3 Land-use planning reform The overarching objective of the reform is to create a stable and predictable investment climate for the construction sector, as well as fight the uncontrolled spread of buildings into peri-urban areas, especially in the largest cities. To that end, the aim of the reform is to (i) streamline existing legislation and improve the legal framework for land-use planning at municipal level; (ii) create transparent and clear rules for land development at municipal level, in particular by providing access to clear, digital and reliable information on the development of land in municipalities; (iii) enhance the participation of stakeholders and social partners in the drafting of municipal general plans. The reform shall consist of the adoption of a new law on spatial planning. Among others, the law shall: (i) introduce a requirement for all municipalities to prepare and adopt a long-term strategy related to land development in the municipality; (ii) introduce a requirement for all municipalities to prepare and adopt general spatial development plans, to be converted into local legislation, which shall lay down the general rules for building in the municipal area and be based on the municipality's long-term strategy related to land-development; (iii) introduce a requirement that obliges investors to carry out additional projects for the benefit of the municipality when building new development projects, with a view to, inter alia, reduce the development of housing without a sufficient provision of services; (iv) define the process in which stakeholders may participate in the drafting of strategies and general plans in municipalities. The implementation of the reform shall be completed by 31 March 2023. A1.3.1 Implementation of the land-use planning reform The investment shall aim to support the implementation of the new spatial planning reform set out in reform A.1.3 of Component A. The investment aims to provide support to municipalities for the preparation of development strategies and general development plans with the objective that all municipalities in Poland adopt new general spatial development plans. The investment shall consist of three types of actions: (i) provision of technical support for the preparation of development plans; (ii) provision of educational material to municipalities (such as webinars and handbooks); (iii) provision of targeted training for planners involved in the development of general plans in municipalities, with a view to train at least 1700 staff. The implementation of the investment shall be completed by 30 June 2026. A1.4 Reform to improve the competitiveness and protection of producers/consumers in the agricultural sector The overarching objective of the reform is to strengthen the position of consumers and producers in the agri-food supply chain with a view to enhance the investment and resilience of all actors in the agri-food sector, particularly SMEs and small producers. To that end, the reform aims at: (i) creating a set of principles and good practices in vertical relations in the agri-food supply-chain; (ii) improving the system of enforcement of contracts in the agri-food sector to prevent the exploitation of contractual advantages; and (iii) enhancing market transparency. The reform shall consist of a new law to combat the unfair use of contractual advantages in the agri-food sector, which shall go beyond the Unfair Trading Practices Directive 2019/633. The reform shall consist of: I.In addition to the list of Unfair Trading Practices set out in the Directive 2019/633, the reform shall introduce an open definition of unfair trading practices. In particular, such additional trading practices shall be identified as unfair by the Office of Competition and Consumer Protection (UOKiK) if (i) they are contrary to the requirements of good commercial conduct; (ii) and they materially distort or are likely to materially distort the interests of the other contract parties.

II.The reform shall protect all trading operators, including buyers of agricultural and food products. The reform shall also include the drafting of a mid-term review of the new law, which shall include an assessment of whether the objectives have been achieved and identify avenues for action to tackle potential problems of implementation. The implementation of the reform shall be completed by 30 June 2025. A1.4.1 Investments to diversify and shorten the agricultural and food supply chain and build resilience of actors in the chain The overarching objective of this investment is to enhance the competitiveness and resilience of the agri-food and fisheries sector in Poland. To that end, the investment aims to (i) support the green and digital transition in the agri-food and fisheries sector; (ii) shorten and build resilience on the agri-food and fishery and aquaculture supply chain, in particular by supporting local SMEs, small producers and fishermen; (iii) avoid food waste and address white spots and technical barriers related to food redistribution. The investment shall consist of the following initiatives: -Construction and modernisation of local storage and distribution centres, wholesale markets, local food markets and cooperatives, including the modernisation of logistics and ICT infrastructure. -Support to SMEs and micro enterprises in agri-food processing, including in the fishery and aquaculture sector, which shall entail the purchase of machinery and equipment, including transport equipment, as well as the expansion and modernisation of plant infrastructure. -Support to farmers and fishermen for the processing and marketing of agricultural and food products, including the construction and modernisation of infrastructure, and the purchase of new machinery and equipment for the processing, transport and storage of products. The support shall also include the organization of agri-food product sales on the internet along with the organization of deliveries. -Support to charitable organisations in the agri-food sector for the modernisation of buildings, infrastructure, and equipment, including transport equipment. The support shall include the development of IT systems and digital applications. -Support for agricultural producers to implement Agriculture 4.0 solutions. This includes the purchase of sensors, tables and digital equipment, as well as the purchase and maintenance of digital solutions, such as applications and software. -Support to agricultural and fishery and aquaculture producers related to the green transition. This shall include the renovation of producers’ infrastructure, including the replacement of roofs that contain materials harmful to health or the environment, the thermal modernisation of buildings, the replacement of electrical and ventilation systems with energy-efficient ones, as well as the replacement of pole carriers impregnated with creosote in hop plantations. It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C 58/01). This includes that: -Trucks and other heavy-duty vehicles purchased shall only be zero-emission, low-emission, or LNG/CNG trucks running on biogas/biomethane. Special purpose vehicles shall comply with the same rules set out above. For those vehicles using biofuels, bioliquids and biomass fuels, the following conditions shall be met: (i) meets the sustainability and greenhouse gas emission savings criteria set out in Articles 29-31 and the rules on food and feed based biofuels set out in Article 26 of the Renewable Energy Directive (Directive 2018/2001/EU (REDII)), and related implementing and delegated acts; and (ii) provides assurance that exclusively REDII compliant biofuels, bioliquids and biomass fuels are used by the vehicles purchased under a scheme support by the RRF; and (iii) is complemented by ‘flanking measures’ that substantiate that the biofuels, bioliquids and biomass fuels share of the national mix is increased over time. -All building renovations shall be done in compliance with the Energy Performance of Buildings Directive (Directive 2018/844/EU) -Biogas energy production facilities shall meet the sustainability and greenhouse gas emission savings criteria set out in Articles 29-31 and the rules on food and feed-based biofuels set out in Article 26 of the Renewable Energy Directive (Directive 2018/2001/EU(REDII)), as well as related implementing and delegated acts. The implementation of the investment shall be completed by 31 December 2025.

Sub-component A2 – Development of the National Innovation System: strengthening coordination, stimulating innovation capacity and cooperation between businesses and research organisations, including in environmental technologies A2.1 Accelerating robotisation and digitalisation and innovation processes The reform aims to strengthen demand for knowledge and innovation and their effective deployment in businesses, in the digital economy. The reform shall consist of the introduction of tax system preferences for companies carrying out the digitisation process through investments in robotisation and digitalisation. The tax relief shall take the form of an extra tax cost deduction to support the purchase of robots. The implementation of the reform shall be completed by 30 June 2022. A2.1.1 Investments supporting robotisation and digitalisation in enterprises The objective of this investment shall be to support projects involving the introduction of innovative solutions aimed at the digital transformation. The investment shall consist of the digitalisation of business processes, supporting the transition towards Industry 4.0 with a particular focus on robotisation and operational technologies. The investment shall support the use of cloud technologies and artificial intelligence in the integration and management of manufacturing and business processes; implementation of smart production lines, construction of smart factories; the deployment of modern digital technologies that support the transition towards reducing environmental emissions (in particular greenhouse gases) and reducing the use of natural resources and environmental impact of manufacturing and business processes. The implementation of the investment shall be completed by 30 June 2026. A2.2 Creating the conditions for the transition to a circular economy model The objective of the reform shall be to create an appropriate legal framework for the functioning of trade in secondary raw materials. The reform shall introduce end-of-waste regulations for key industrial waste (with the greatest economic potential), and the implementation of a definition of secondary raw material, which would facilitate the circulation and use of waste as secondary raw materials. The reform shall consist of a framework for the development of the secondary raw materials market to facilitate the management of these materials, which shall result in a reduction of the exploitation of natural resources deposits, replacing natural materials and products. The reform shall lead to a reduction of waste storage on waste heaps. The implementation of the reform shall be completed by 30 June 2024. A2.2.1 Investments in the deployment of environmental technologies and innovation, including those related to circular economy The objective of this investment shall be to support the use of secondary raw materials, including by funding, inter alia, research & development (R&D) infrastructure to develop technologies for the use of waste as secondary raw materials, with the aim of creating a more efficient economy.

The investment shall consist of two actions. The first action shall support projects awarded to SMEs to develop and implement green technologies related to the circular economy, resulting in improved material management, increased energy efficiency and a shift in philosophy of companies towards zero waste. The implementation of the action shall be completed by 31 March 2025. Under the second action, projects supporting the development of technologies contributing to the creation of a market for secondary raw materials shall be financed. The implementation of the action shall be completed by 30 September 2025. The selection of beneficiaries shall be undertaken in line with specified selection criteria following the principles of non-discrimination and transparency. Projects shall concern to the development and implementation or application of green industry solutions that are expected to result in an increase in energy efficiency in production and operational processes or reduction of waste from production and operational processes or re-using or recycling of waste or reduction of GHG emissions from production and operational processes. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C 58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. A2.3 Providing the institutional and legal basis for the development of the unmanned aerial vehicles (UAVs) The objective of the reform shall be to set up an entity to support the testing and implementation of new UAV-based solutions, in particular in urbanised areas. The reform shall grant the Polish Air Navigation Services Agency the right to own equity in commercial companies and shall authorise it or its subsidiaries to conduct pilot projects supporting the implementation of business models and services based on UAVs. The Polish Air Navigation Services Agency shall also act as a provider of specialized services for UAVs within the planned network of competence centres. The implementation of this reform shall be completed by 30 June 2023. A2.3.1 Development and equipment of competence centres (specialist training centres, implementation support centres, observatories) and unmanned vehicle industry management infrastructure, as an ecosystem of innovation The objective of this investment is to establish an integrated system of competence centres and pilot projects and infrastructure for unmanned vehicles. The investment shall consist of the implementation of local centres and infrastructure for unmanned vehicles. Local centres and/or infrastructures shall be implemented in ten locations. The key elements of the supported project shall be terrestrial infrastructure, local data and traffic management centres along with digital services and producers implemented. The second element of the investment shall consist of testing and implementing unmanned vehicle services in pilot projects carried out in individual competence centres. Pilot projects shall be implemented as part of specialised programmes in the areas of autonomous traffic coordination, key infrastructure facilities (ports and energy infrastructure), public order services (security and civil protection) and urban mobility. The implementation of the investment shall be completed by 30 June 2026. A2.4 Strengthening cooperation mechanisms between science and industry The reform shall consist of two actions. The objective of the first action is to allow universities and research institutes to become shareholders in companies. This is expected to lead to greater interdisciplinary and flexibility of technology transfer. The first action under this reform shall consist of broadening the categories of entities with which universities shall be able to establish special purpose vehicles. These shall be research institutes, institutes of the Polish Academy of Sciences and institutes of the Łukasiewicz Research Network. The reform shall allow for creation of special purpose vehicles designed specifically for commercialization of R&D results.

The implementation of this reform was to be completed by 31 March 2022. The second action under this reform shall establish, for the research institutes and subordinated units under the supervision of the Ministry of Agriculture and Rural Development, rules for the use of laboratories, research infrastructure and knowledge transfer within science-science and science-business cooperation. The rules for granting aid shall follow the principles of non-discrimination and transparency. The implementation of this reform was to be completed by 31 March 2022. A2.4.1 Investment in the development of research capacities The objective of this investment is to ensure closer cooperation among research and innovation institutions as well as between scientific institutions and the business sector. It shall contribute to increasing high-quality R&D results with high commercialisation potential. This investment shall consist of the funding of research infrastructure within the Łukasiewicz Research Network, the Polish Roadmap for Research Infrastructure and within the agri-food institutes and subordinated units under the supervision of the Ministry of Agriculture and Rural Development. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C 58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The following R&D&I actions under this investment shall be considered compliant with the ‘Do no significant harm’ Technical Guidance (2021/C 58/01): (i) those R&D&I actions under this investment resulting in technologically neutral outcomes at the level of their application; (ii) those R&D&I actions under this investment supporting alternatives with low environmental impacts for which these exist; or (iii) those R&D&I actions under this investment that are primarily focused on developing alternatives with the lowest possible environmental impacts in the sector for those activities for which no technologically and economically feasible low-impact alternative exists. The implementation of the investment shall be completed by 31 December 2025. Sub-component A3 – Education for the modern economy A3.1 Workforce for the modern economy: improving the matching of skills and qualifications with labour market requirements due to the introduction of new technologies in the economy and the green and digital transformation The main aim of the reform is to prepare the workforce for the modern economy and to improve the matching of skills and qualifications with labour market requirements, linked to the introduction of new technologies in the economy and the green and digital transformation. This reform shall aim at establishing Sectoral Skills Centres and amending relevant legislation to provide targeted upskilling and reskilling services. The objective of the reform shall include supporting the cooperation of employers with vocational education providers, contributing to the dissemination of innovative solutions, and supporting innovation in vocational training. Inclusion of persons with disabilities shall also be addressed. As such, the Skills Centres shall complement the existing offer of secondary and higher vocational education and training and lifelong learning. The reform shall include an amendment of the Education Law and the Teachers Charter. This shall follow a review process in close cooperation with social partners, regional authorities, sectors and other stakeholders. The amendment of the Education Law shall foresee a development plan for the Skills Centres’ Network, determine the place and role of Skills Centres in the education and training system, determine the conditions for the employment of staff in the Skills Centres, establish provisions for cyclical reviews to ensure supervision over their management and the sustainability after 2026, and adjust an existing governance system with tailored provisions on the governance of Skills Centres, including employers (including representatives of SMEs), social partners and other relevant stakeholders including regional and local authorities. It shall also include the establishment of financing arrangements (including after EU support ceases), training conditions, provisions for career guidance, and curricula, and it shall identify the types of training provided, the target groups, the types of qualifications and standards, quality assurance and verification mechanisms, and how the sectors shall be linked to the Skills Centres. The amendment to the Teachers’ Charter shall allow for the provision of continuous professional training by the Skills Centres to current vocational education teachers. The reform shall also aim to adapt the coordination of vocational education and training, higher education and lifelong learning in the regions, with a view to creating sustainable and effective methods of cooperation and interaction between different stakeholders in the area of skills development that are part of the different governance structures (such as educational institutions, labour market institutions, enterprises and employers’ organisations, and local authorities). This shall be achieved through the entry into force of amendments to several legislative acts, after a review process of existing coordination mechanisms, and in close cooperation with local and regional authorities. The reform shall identify rights and responsibilities of regions in the coordination of skills policies and influence the upskilling offers of lifelong learning institutions based on operationalised implementation programmes for the (national) Integrated Skills Strategy 2030 at regional level. These amendments shall include the legal establishment of Regional Coordination Teams (one in each Polish 'voivodeship’) coordinating vocational education and training policy, higher education and lifelong learning; a governance structure that incorporates responsibilities for regions and social partners; an obligation for adopting operationalised implementation programmes for the national Integrated Skills Strategy 2030 at regional level (one in each 'voivodeship’), and to update a programme every five years, and to ensure that the learning offer shall be adapted to the diagnosed skills needs. The amendments shall include provisions for the functioning of the Coordination Office (providing services for the Regional Coordination Teams), and an implementation plan for monitoring and evaluation. The implementation of the reform shall be completed by 31 March 2025.

A3.1.1 Investments in modern vocational training, higher education and lifelong learning The investment, linked to reform A3.1, shall aim at the actual creation and full functioning of the network of Sectoral Skills Centres to support the development of modern vocational training, higher education and lifelong learning. This shall include the creation of the Skills Centres and provision of vocational training courses and curricula, including for adults, students, young people, vocational education and training teachers, and employees. The investment shall not include the purchase of land. For the provision of up- and re-skilling and training curricula in the Skills Centres, including certification of learning outcomes, 24 000 learners shall receive training in all Centres. Of these learners, at least 60% shall be adults (at least 25 years old – not including vocational education and training teachers); at least 20% of learners shall be young people (between 14 and 24 years old); at least 10% of learners shall be current vocational education and training teachers, who shall participate in the training in the first two years of operation of the Skills Centres (following the reform of the Teachers Act). Finally, each upskilling programme shall include at least a digital dimension and a green dimension, based on the best available knowledge and science. At least 90 sectoral organisations shall be included in the Skills Centres (for whom training shall be provided). The investment shall also set up at least 14 functioning Regional Coordination Teams, with an overall objective to reach 16 Regional Coordination Teams (one for each ‘voivodeship’). These Teams shall coordinate policy in vocational education and training and lifelong learning. The investment shall include support and development of coordination mechanisms at central and regional level, as well as support for activities of the regional teams to perform their tasks. In addition, with an overall objective to develop 16 operationalised implementation programmes at regional level (one for each 'voivodeship’), at least 14 operationalised implementation programmes at regional level shall be developed by the established Regional Coordination Teams for vocational education and training and lifelong learning. These shall be implementation programmes for the national Integrated Skills Strategy 2030 at regional level. The implementation of the investment shall be completed by 30 June 2026. Sub-component A4 – Increasing structural matching, efficiency and crisis resilience of the labour market A4.1 Effective institutions for the labour market The overarching objective of the reform is to increase the labour market participation with a view to contributing to higher productivity, crisis resilience and global competitiveness of the Polish economy. Another objective is to bring new flexibility and security in the Polish labour market. To that end, the reform aims at: (i) redesigning the way the public employment services operate and enhancing active labour market policies; (ii) easing the hiring process of foreign workers; (iii) easing recruitment procedures by implementing new provisions on electronic contracts; and (iv) exploring ways for enhancing the use of collective agreements and of a single labour contract. The reform shall consist of new legislation on public employment services, on the employment of third country nationals, and on the electronic conclusion of certain job contracts. Moreover, the reform shall consist of an adoption of a new standards and performance framework on the functioning and coordination of the public employment services. A consultation process of social partners on the potential for collective agreements and a comprehensive study on the potential role of a single labour contract shall be conducted. Relevant legal changes, as identified in the consultation and in the study, shall be implemented. The implementation of the reform shall be completed by 30 September 2024. A4.1.1 Investment in support of labour market institution reform The overarching objective of this investment is to increase the capacity of the public employment services to support the functioning of the labour market. To that end, the investment shall aim to digitise services and tools used by the public employment services, to train the staff of the public employment services, and to carry out an information campaign on the new services offered by the public employment services, also to their first-time future users. The investments shall consist of (i) digitalisation of public employment services’ processes and (ii) training courses for the public employment services’ staff, (iii) developing new standards. The implementation of the investment shall be completed by 30 June 2025.

A4.2 Reform to improve the labour market situation of parents by increasing access to high-quality childcare for children up to the age of three The overarching objective of the reform is to ease the access to childcare facilities for children up to the age of three and to ensure high education and quality standards for childcare services. To that end, the aim of the reform is to (i) streamline the management of domestic and external funds for creation and functioning of the childcare facilities; (ii) implement a stable long-term domestic financing of the childcare services for children up to the age of three; as well as (iii) implement a set of binding minimum education and quality standards for childcare facilities. The reform shall consist of the adoption of an amendment to the law on the care of children up to three years of age and of setting up a dedicated multi-annual programme for the creation and functioning of the childcare facilities. Among others, the amendment shall bring together the management of three distinct financing sources for the creation and functioning of childcare facilities: domestic financing, European Social Fund+ and the Recovery and Resilience Facility. The reform shall also consist of designing a relevant scheme and ensuring sufficient funds to set up a stable long-term domestic financing of childcare services for children up to the age of three. Finally, the reform shall consist of carrying out a strategic review of existing care and educational standards for children under three years of age, developing relevant educational guidance and supports for childcare facilities, and implementing relevant legal changes based on this review with a view to setting up a set of binding minimum education and quality standards for childcare facilities to ensure the high quality of education and care from an early age. The implementation of the reform shall be completed by 30 June 2024. A4.2.1 Support for childcare facilities for children up to three years of age (nurseries, children’s clubs) under Maluch+ The overarching objective of this investment is to increase the availability of childcare facilities up to the age of three by subsidising the costs of construction of childcare facilities and setting up a financing management system of childcare facilities for children up to the age of three. To that end, the investment shall aim to (i) implement an IT system to manage the financing and creation of childcare facilities for children up to the age of three, and to (ii) create new places in childcare facilities (nurseries, children’s clubs) for children up to three years of age. The investment shall consist of a development and a rollout of an IT system to manage the financing and creation of childcare facilities for children up to the age of three. The system shall combine different sources of financing childcare (European funds, national financing from the central budget, local governments financing). The investment shall also consist of the creation of 47500 new places in nurseries and children’s clubs through the construction of new facilities and the refurbishment (renovations and adaptations) of existing ones. Exceptionally, if needed, this may include the purchase of real estate and infrastructure (the purchase of land or premises). A clear delineation between the funding from the Recovery and Resilience Facility and other European funding shall be respected. The implementation of the investment shall be completed by 30 June 2026. A4.3 Implementation of the legal framework for the development of the social economy The overarching objective of the reform is to increase the professional activity rate of people at risk of social exclusion and to support the deinstitutionalisation of social services. To that end, the aim of the reform is to define in the legislation a framework for the functioning of social economy actors. The reform shall consist of an adoption of a law on the social economy. The law shall define the basic rules related to this sector, including in particular the principles of functioning and supporting a social enterprise, new modes of cooperation between social economy entities and the local government in the implementation of social services, as well as the principles of policy coordination in the field of social economy development. The implementation of the reform shall be completed by 30 June 2022. A4.3.1 Investment support programmes making it possible, in particular, to develop activities, increase participation in the provision of social services, improve the quality of reintegration into social economy entities The overarching objective of this investment is to maximise the impact of social economy entities in terms of social and professional reintegration of people at risk of social exclusion and to support the deinstitutionalisation of social services. To that end, the investment shall aim to help entities to obtain a social enterprise status and to maintain jobs in social economy entities. The investment shall consist of the preparation and implementation of programmes providing grants to eligible entities. The targets to measure the achievement of the investment shall be (i) to grant the social enterprise status to 1400 entities and (ii) to provide financial support to at least 1000 social entities.

The selection of beneficiaries shall be undertaken in line with specified selection criteria that shall respect the principles of non-discrimination and transparency. The implementation of the investment shall be completed by 31 December 2025. A4.4 Making forms of employment more flexible and introducing remote work The overarching objective of the reform is to make it easier to reconcile family and professional responsibilities and help people from groups with lower labour participation rates to find regular employment. To that end, remote work and flexible forms of organisation of working time shall be enshrined in the Labour Code. The reform shall consist of the adoption of an amendment to the Labour Code. The amendment shall allow remote work anytime, and not only in extraordinary circumstances, and implement flexible forms of working time arrangements. The amendment shall also define several operational arrangements of remote and flexible work, including: (i) the possibility to work remotely outside the place of employment, based on arrangements between the worker and the employer, (ii) a definition of rules on the work tools to be provided by the employer, and (iii) the creation of a framework for health and safety principles applicable to the remote work. The implementation of the reform shall be completed by 30 September 2022. A4.4.1 Investments related to equipping workers/companies to work remotely The overarching objective of this investment is to increase the productivity of micro, small and medium enterprises. To that end, the investment shall aim to equip companies and to train their employees for remote work. The investment shall consist of the implementation of programmes providing advice and grants to eligible entities to better equip them for remote working practices. The target to measure the achievement of the investment shall be the provision of advice on digitalisation to at least 3000 companies and, if found necessary as an outcome of such advice, with the purchase of software / licenses and digital upskilling for staff. If the beneficiary had previously performed the above analysis, the grant may be used for the purchase of software / licenses and digital upskilling of staff. The selection of beneficiaries shall be done under specified selection criteria following the principles of non-discrimination and transparency. The implementation of the investment shall be completed by 30 June 2025. A4.5 Extend careers and promote working beyond the statutory retirement age The overarching objective of the reform is to increase workers’ a