On Tuesday, Poland’s finance ministry suspended all further disbursements from a multi-million euro EU-funded program designed to support hotels, restaurants, and cultural venues. The decision came after a transparency review revealed that some grants were used for unexpected expenses such as yachts, vodka bars, and even a business linked to a swingers’ club.
Funds Minister Katarzyna Pełczyńska-Nałęcz announced that no more payments will be made until each of the approximately 2,400 grants—totalling around 1.2 billion złoty (€282.3 million)—undergoes a thorough audit. “Every złoty will be scrutinised,” she said, attributing the current issues to rules established by the previous government. The goal is to maintain public confidence in EU funding and ensure the money reaches its intended recipients.
So far, about 110 million złoty (€25.8 million) has been distributed, while the remainder of the program’s budget remains frozen.
This support scheme, part of Poland’s delayed EU Covid recovery effort, was meant to help small tourism and hospitality businesses recover and diversify post-pandemic.
The broader EU recovery funds, worth €59.8 billion for Poland, were held up for years due to political disputes under the former administration. Their release marked a significant achievement for Prime Minister Donald Tusk following his 2023 election win.
However, an interactive map released last week showing recipients sparked public outrage by highlighting questionable purchases, including luxury boats, furniture, and a grant linked to a swingers’ club’s address.
The opposition has used this controversy to criticise the current government, accusing it of favouritism and financial mismanagement, and exposing divisions within the ruling coalition.
“These funds were supposed to rebuild Poland and create jobs,” said an opposition spokesperson. “Instead, what we see is a huge mess and debt that will burden everyone.”
In response, Prime Minister Tusk defended his administration, blaming the previous government for delaying the funds and forcing a hurried distribution process.
“The full responsibility for this prolonged issue lies with our predecessors who blocked the funds for years, leaving us little time to allocate them properly to Polish businesses,” he said. “To get the money out quickly, the ministry relaxed rules, which unfortunately allowed some misuse.”
A spokesperson from the European Commission confirmed that the situation is being monitored closely but emphasised that managing the funds is Warsaw’s responsibility.
