font_preload
PL / EN
Polish Briefing 29 June, 2017 9:00 am   
Editorial staff

Polish Briefing: Germans want to take away EU funds. Lidl as an energy supplier

What goes in Poland on 29th of June.

Germans want to take away EU funds

The European Commission will consider Germany’s proposition to make the payout of EU funds dependant on a Member State’s adherence to the rule of law. The introduction of such a mechanism may impact Poland.

The EC President, Jean-Claude Juncker initially said that the idea “would be poison for the Continent.” Berlin wants to use the structural funds whose objective is to reduce the differences in wealth across the EU, as a sanction mechanism against Member States. If the German idea is introduced, it will give the EC the power to reduce funds for a country, which, in the Commission’s opinion, does not respect the rule of law.

Günther Oettinger, the Commissioner responsible for the EU budget, is also rather skeptical. “I am saying this neutrally – this is a minefield,” he stated during a recent forum on the future of EU funds in Brussels. However, he also pointed that it wasn’t in the EC’s scope to reject the idea.

According to the President of the City of Gdańsk, Paweł Adamowicz, “the reduction of funds would cause a lot of damage,” because even though Poland did develop economically since it has joined the EU in 2004, it still needs support to catch up to Western Europe. The 2014-2020 EU budget included EUR 77.6 billion for Poland.

Rail Baltica important for the Three Seas Initiative

Transport infrastructure is essential for the Three Seas Initiative. Rail Baltica is a significant element of that infrastructure. What is currently happening with this important initiative? Jerzy Polaczek, PhD, MP, Vice-Chairman of the Sejm’s Infrastructure Commission and former minister of transport, talks to BiznesAlert.pl about the project.

“Rail Baltica is a sister route to the key express road artery Via Baltica. One of the two foundations of the region’s transport infrastructure. It will connect Poland’s railway system with the Baltic States.”

“Both investments are very important for the north-south axis,” said the politician. The railway is important for safety because it will reduce congestion on the Via Baltica road, which will be used also by international freight trucks, including fuel transportation. Currently, road accident statistics on the old, overcrowded road are tragic. Rail Baltica and Via Baltica will provide a much improved level of safety. To ensure safe travel, the government included the routes’ synergy in the Polish transport policy.”

High speed rail

Minister of Infrastructure and Construction, Andrzej Adamczyk announced that it was necessary to analyze whether Poland needs high speed rail. The minister pointed to the fact that such an investment requires the construction of completely new tracks. “This needs to be researched by experts,” said Adamczyk in an interview with the Polish Radio. He explained that one of the things that needed to be investigated is the economic rationality of such an investment.

“The political decision will be made once experts, within the next two or three years, prepare an answer on whether Poland needs high speed rail, or whether it is enough to have trains that arrive on time and ride at a decent speed between 150 and 180 kilometers per hour,” explained the minister.

He also added that the current government “did not have any complexes about it.” He said that he was convinced that Poland deserves the same investments as Europe and the rest of the world. “Still, it is necessary to assess the rationality of the project,” said the minister.

Lidl as an energy supplier

The German retailer, Lidl announced it would offer green electricity to its clients. The new service called “Lidl-Strom” will be available as of 3 July. The chain started cooperation with E.on.

The retailer advertises that “Lidl-Strom” will ensure “a significant price advantage” in comparison to the majority of local suppliers and as of 31 January 2019 will offer a guaranteed price.

Lidl says that the program will help it to stabilize its position as a responsible retailer. Green electricity supplied by E.on is produced in wind and sun farms and hydroelectric power plants, as well as plants certified by Tüv.

“Together with E.on we are offering our clients green electricity at a reasonable price,” said Jan Bock, Director of the Purchasing Department at Lidl Germany.