Poland Suspends Distribution of EU Funds
(MENAFN) Poland has put a halt to the allocation of European Union funds intended for post-Covid recovery in the hospitality, tourism, and culture sectors due to allegations of improper use of the money.
Reports revealed that some of the funds were spent on luxury items like yachts and high-end furniture, and even on a grant registered to the address of a swingers' club, as reported by a news agency.
The controversy began when Polish authorities published interactive online maps showcasing the distribution of the recovery funds, aiming to demonstrate transparency.
However, the maps exposed details that raised suspicions, including funds spent on yachts, a pizzeria that installed tanning beds, and, in one widely circulated example, a business in southern Poland sharing an address with a sex club.
Finance Minister Katarzyna Pelczynska-Nalecz stated on Tuesday that no further funds would be distributed until a thorough review is conducted for each of the approximately 2,400 grants, which together total around 1.2 billion zlotys (€282.3 million/$330 million).
The HoReCa program, part of Poland’s delayed EU Covid recovery initiative, was designed to aid small businesses in the tourism and hospitality sectors that were heavily impacted by pandemic restrictions.
Poland was eligible to receive nearly €60 billion from the EU’s Recovery Fund, but access was initially blocked under the former government due to a dispute over the rule of law.
Following the 2023 election, the new government resolved the issue and unlocked the funds.
The conservative PiS, which lost its parliamentary majority two years ago, has seized on the scandal to criticize the current government.
PiS MEP Tobiasz Bochenski even staged a protest on Saturday, unveiling a mock plaque for the fictional "Ministry of Herring and Vodka" outside the office of Polish Prime Minister Donald Tusk.
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