Poland halts payouts from EU Covid grants
(MENAFN) Poland has frozen payouts from an EU post-pandemic recovery program after revelations that some of the money was misused on luxury purchases and questionable projects. According to Politico, recipients of the hospitality and tourism support fund used grants to buy yachts, high-end furniture, and even registered one at the address of a swingers’ club.
The controversy began when authorities published online maps of beneficiaries to promote transparency. Instead, the data revealed eyebrow-raising cases, including a pizzeria that added tanning beds and businesses with no clear link to tourism or culture.
Finance Minister Katarzyna Pelczynska-Nalecz announced that no further disbursements will be made until each of the roughly 2,400 grants—worth about 1.2 billion zlotys (€282 million)—is individually reviewed.
The HoReCa scheme, designed to help small businesses in tourism and hospitality recover from Covid lockdowns, is part of Poland’s broader EU Recovery Fund package worth nearly €60 billion. The country only gained access to the money in 2023 after the new government addressed Brussels’ rule-of-law concerns, which had blocked payouts under the previous PiS administration.
The opposition PiS party has seized on the scandal to attack Prime Minister Donald Tusk’s government. PiS MEP Tobiasz Bochenski mocked the situation by placing a fake “Ministry of Herring and Vodka” plaque outside Tusk’s office.
In response, Tusk blamed PiS for delaying the funds for years, forcing the current government to rush distribution. He admitted looser oversight allowed abuses but insisted the priority was to get money flowing quickly to struggling businesses.
The European Commission said it is monitoring developments but emphasized that oversight of the funds is Poland’s responsibility.
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