EU Cohesion policy: €310.5 million for Poland to tackle the social and economic impact of the coronavirus crisis

The Commission has approved the modification of the European Regional and Development Fund ‘Smart Growth’ Operational Programme (OP) in Poland under REACT-EU to increase by €310.5 million the funding available to help tackle the effects of the coronavirus pandemic and prepare the recovery. Commissioner for Cohesion and Reforms, Elisa Ferreira, commented: “I am glad to approve Poland’s first OP amendment under REACT-EU. Cohesion policy is providing support to European citizens when they need it most, allowing them to recover their lives stronger than before. I encourage all Member States to make full use of the advantages that REACT-EU offers.” €273.6 million will reinvigorate the ‘Loan Fund’, which will provide advantageous loans for small and medium-sized enterprises. The loans may be used to cover current financing needs, such as payment of employees’ salaries, repayment of short-term liabilities, as well as optional investment expenditure. Furthermore, €25 million will be dedicated to vouchers for new solutions in the area of digitalisation in companies with the aim to help accelerate the digital transformation of the economy. Finally, €11.9 million will be dedicated to a new REACT-EU technical assistance priority axis to ensure the fullest possible range of assistance to entrepreneurs. REACT-EU is part of NextGenerationEU and provides €50.6 billion additional funding (in current prices) over the course of 2021 and 2022 to Cohesion policy programmes. Measures focus on supporting labour market resilience, jobs, SMEs and low-income families, as well as setting future-proof foundations for the green and digital transitions and a sustainable socio-economic recovery