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Poland freezes EU recovery funds for hospitality sector amid misuse concerns: gov't minister

13.08.2025 12:00
Poland's government has halted payments from the EU’s post-pandemic recovery plan to the hospitality and restaurant sector until each contract is reviewed, Regional Policy Minister Katarzyna Pełczyńska-Nałęcz has said.
Katarzyna Pełeczyńska-Nałęcz
Katarzyna Pełeczyńska-NałęczPiotr Podlewski/Polskie Radio

Speaking at a news conference on Tuesday, Pełczyńska-Nałęcz warned that funds already paid may have to be returned if any irregularities are found.

The decision follows media reports that some firms in the HoReCa sector—hotels, restaurants, and catering businesses—received funds for questionable purchases such as company yachts, saunas and virtual shooting ranges.

The support program, worth PLN 1.24 billion (about EUR 290 million, USD 340 million), is part of Poland’s National Recovery Plan, which is funded by the EU.

So far, only PLN 110 million has been paid out, according to officials.

“Every contract will be checked, and if a grant is not in line with the rules, it will not be paid," Pełczyńska-Nałęcz told reporters on Tuesday. "Properly awarded grants will be released."

She added that if irregularities are found in grants already disbursed, the government could demand repayment.

Pełczyńska-Nałęcz said that one audit had already been carried out at the Regional Development Agency in the southeastern city of Rzeszów, one of five operators distributing the funds, and two more inspections were under way.

She said possible irregularities are rare—"30 to 100" out of more than 824,000 contracts under the KPO—but even a single case demands “respect and proper government action.”

Prime Minister Donald Tusk said last week he would not accept any misuse of recovery funds and would consider personnel changes if needed.

The public prosecutor’s office in Warsaw has also opened an inquiry, and the opposition Law and Justice party (PiS) has announced it will refer the matter to the Central Anti-Corruption Bureau (CBA).

The HoReCa program was designed to help micro, small, and medium-sized firms in tourism, hospitality, food-service and cultural services that suffered during the pandemic.

Grants ranged from PLN 50,000 to PLN 540,000, covering up to 90 percent of eligible costs, and could be used for investment, training or consultancy.

Pełczyńska-Nałęcz said the program was approved under the previous PiS government and later modified.

After the change of government, her ministry introduced a one-year restriction preventing the sale of assets bought with EU recovery funds, "to ensure investments are used as intended," she told reporters.

The Polish Agency for Enterprise Development (PARP), which administers the spending, will carry out additional checks.

Acting PARP head Krzysztof Gulda said preliminary audit results should be ready by the end of September, and that contracts can be terminated and funds reclaimed if misuse is confirmed.

(rt/gs)

Source: PAP