Polish MPs push for strategic EU fund to bolster eastern borders
Polish Members of the European Parliament are mobilizing in Brussels to advocate for the creation of a new EU fund that could benefit provinces on the eastern border. The aim is to secure additional funds for investments in border regions, supporting Poland and other neighbours of Russia.
The EU budget for 2025 is projected to include funds to strengthen the eastern border. The challenge is that the proposed amount falls short of the needs reported by frontline states. Additionally, this funding will need to be shared with other countries, and it is primarily earmarked for the physical strengthening of the border. However, in border regions, the issue also encompasses economic consequences stemming from the challenging neighbourhood.
For these reasons, among others, Polish MEPs have begun building a cross-party coalition in the European Parliament aimed at pressuring the incoming European Commission to create a new Protection and Development Fund. Its main beneficiaries would be countries like Poland, Romania, and the Baltic States.
The scale of this fund is something the initiators are not ready to disclose at this stage. "Ultimately, we are talking about several to multiple billion euros," one of the MEPs suggests. The fund would have two main pillars. The first would address economic issues, focusing on financing aid programs for enterprises, especially micro and small companies in regions economically affected by the war.
"Unemployment reaches 16 percent"
Post-war, funds from this pool could help tighten Poland's border, among others. "If we don't strengthen the border now, we will struggle to manage the influx from Ukraine that could flood the European market," one of the MEPs emphasizes.
Border regions, such as the Lublin, Subcarpathian, and Podlaskie regions, along with others in countries bordering Russia, Belarus, and Ukraine, have borne the brunt of Russian aggression and hybrid warfare. In Poland, unemployment in border counties reaches 15-16 percent, and there is a noticeable exodus of investors. Therefore, a special assistance and support fund for these regions is needed, argues KO MEP Marta Wcisło.
The second pillar of the fund would focus on security issues, such as strengthening border infrastructure, in a much broader scope than what the EU currently offers.
Will a digital tax help?
The question is whether there will be funds for the new initiative or if new sources of EU income will be necessary, especially since none of the member states wants to increase their contributions. Consequently, the European Parliament is considering introducing a digital tax without waiting for any move from Donald Trump towards Europe.
The President-elect has announced that his first economic decisions after the January inauguration will involve raising tariffs on products from China, Canada, and Mexico. The question remains on his approach towards the relationship between the EU and big tech companies. However, it can be assumed that he is likely to favour the latter due to his close cooperation with billionaire Elon Musk.
Another potential source of funding might be budget surpluses that tend to appear in the EU budget, which, as experience shows, are often slightly higher in monetary terms than initially forecasted.
A letter was sent. Dozens of signatures
A letter concerning the establishment of a Protection and Development Fund has already been forwarded to the European Commission. It has been signed by about 40 MEPs from various factions, including the European Conservatives and Reformists, which includes PiS.
However, reportedly, no PiS MEPs have responded to support the letter. Intense lobbying is also underway directly with prospective commissioners. As we understand it, the initiative is said to be supported by Piotr Serafin, the future Polish commissioner responsible for the EU budget. Additionally, support is expected from Raffaele Fitto, the future vice president of the EC, who is responsible for cohesion policy and regional development.
MEP Andrzej Halicki from KO believes there is a chance of creating a new fund, which could initially serve as a pilot project.
Unused funds exist in the EU budget, and certain reallocations can be made. There are settlements, and currency rates fluctuate over time. There is typically a bit more in the budget than originally planned - states Halicki.
In his view, during the pilot stage, tens or hundreds of millions of euros could be allocated to such a fund, with the potential for amounts exceeding a billion euros in the future. This money would be utilized to establish investment programs in these areas, benefiting local businesses. KO MEPs hope to persuade the commission to implement such an instrument eventually.
Negotiations are ongoing alongside the process of adopting the EU budget for 2025, which amounts to approximately $284 billion CAD. Within this framework is the Solidarity Fund, aimed at supporting member states affected by natural disasters. Poland is applying for funds from this source to overcome the effects of floods. MEPs also hope it will provide money to reinforce the border infrastructure and alleviate pressure on the border with Belarus.
