EconomyPolish MEPs push for new EU border protection fund

Polish MEPs push for new EU border protection fund

Polish Members of the European Parliament are mobilizing in Brussels to advocate for establishing a new EU fund that could benefit provinces along the eastern border. This initiative aims to secure additional funds for investments in border regions, supporting Poland and other neighbors of Russia.

President of the European Commission Ursula von der Leyen and Prime Minister Donald Tusk
President of the European Commission Ursula von der Leyen and Prime Minister Donald Tusk
Images source: © Getty Images | Omar Marques
Grzegorz Osiecki

The EU budget 2025 includes funds to bolster the eastern border. However, the projected amount is insufficient to meet the needs of frontline states. Additionally, this funding must be shared with other countries, primarily intended for physical border strengthening. Meanwhile, due to the challenging neighborhood, economic consequences in these border regions must also be addressed.

For these and other reasons, Polish MEPs have started building a cross-party coalition in the European Parliament to press the new composition of the European Commission to create a new Protection and Development Fund. This fund's main beneficiaries would be countries like Poland, Romania, and the Baltic States.

Details such as the size of the fund remain undisclosed at this stage. "Ultimately, we are talking about several billion euros," one of the MEPs suggested. The fund would have two main components. The first would focus on economic issues—financing aid programs for enterprises, especially micro and small companies in regions affected economically by the war.

"Unemployment reaches 16 percent"

Following the war, funds from this pool could help strengthen Poland's border. "If we do not reinforce the border now, we will struggle with the influx of everything coming from Ukraine that might flood the European market," one MEP pointed out.

Border regions, such as Lublin, Subcarpathian, and Podlaskie, as well as other areas in countries neighboring Russia, Belarus, and Ukraine, have borne the brunt of Russian aggression and hybrid warfare. In Poland, unemployment in border counties is 15-16 percent, accompanied by a noticeable exodus of investors. Therefore, a special assistance and support fund for these regions is necessary, argues KO MEP Marta Wcisło.

The second component of the fund would address security issues, focusing on enhancing border infrastructure more comprehensively than current EU offerings.

Will a digital tax help?

Whether funds will be available for this new initiative or if new EU income sources must be sought. Given that no member state wants to increase contributions, some voices in the European Parliament suggest introducing a digital tax, independent of any actions by Donald Trump towards Europe.

After the January inauguration, the President-elect announced plans to raise tariffs on products from China, Canada, and Mexico. How he will handle EU relations with big tech companies remains uncertain. However, due to his close ties with billionaire Elon Musk, it's assumed he may favor Musk's interests.

Another potential funding source could be the budget surpluses that often exceed initial forecasts in nominal terms by the time of budget adoption.

A letter was sent. Dozens of signatures

A letter suggesting the creation of a Protection and Development Fund has already been submitted to the European Commission. It was signed by approximately 40 MEPs from various factions, including the European Conservatives and Reformists, aligned with PiS.

However, no PiS MEPs responded to the invitation to support the letter. Intense lobbying continues directly with prospective commissioners. Reports suggest that Piotr Serafin, the future Polish commissioner responsible for the EU budget, and Raffaele Fitto, the future EC vice president responsible for cohesion policy and regional development, support the initiative.

MEP Andrzej Halicki from KO believes there is potential for creating a new fund, which could initially be a pilot project.

Unused funds in the EU budget, currency rate shifts, and settlements provide opportunities. There is often slightly more in the budget than initially planned, says Halicki.

According to him, the pilot project could initially channel tens or hundreds of millions of euros, eventually exceeding a billion euros. This funding would develop investment programs benefiting local businesses in these areas. KO MEPs are hopeful they can convince the Commission to implement such a tool.

Negotiations are occurring alongside the EU budget adoption process for 2025, totaling approximately $211.4 billion. The Solidarity Fund within this budget aims to assist member states affected by natural disasters. Poland seeks support from this fund to address the effects of floods. MEPs hope it will also finance improvements to border infrastructure, reducing pressure on the Belarus border.

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