Poland receives green light from the EC – KPO extended until November 2026

Poland has reached an crucial breakthrough in negotiations with the European Union. The European Commission expressed preliminary approval to extend the settlement deadline of the National Recovery Plan (KPO) until November 2026, and approved the establishment of an EU-funded safety and Defence Fund (FBIO).

This decision is crucial for the implementation of hundreds of projects that have been threatened by deficiency of time and political blockade so far. Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, reported it on her X profile:

"It wasn't easy, but it is! We have a preliminary agreement with the Commission to extend by at least 3 months, until November 2026, the clearing of investments in KPO. Final confirmation – in the first days of June. This decision can save hundreds of investments that due to the 2-year blockade of KPO race against time today.”

— Katarzyna Pełczyńska (@Kpelczynska) May 27, 2025

What is the National Reconstruction Plan?

National opposition Recovery and Enhancement Plan (KPO) is simply a government programme implemented under the mechanics NextGenerationEU. It consists of 57 investments and 54 reforms, whose aim is to support the transformation of the digital and climatic economy, and to increase Poland's resilience to future crises.

This programme provided Poland with a immense support package of over PLN 254 billion (EUR 59.8 billion). This amount includes both grants (PLN 107.3 billion)and preferential loans (PLN (146.8 billion).

As required by the EU:

• 44.96% of measures intended for climate purposes,
• 21.28% – for digital transformation.

Extension of the settlement deadline – rescue for investment

The problem to date has been the hard political situation in the last period of the erstwhile government's word of office, which led to almost 2 years' blockade of KPO-related activities. This caused delays in the implementation of many projects to be completed by August 2026.

The extension of this deadline by a minimum of 3 months now gives an additional chance to implement the planned actions and prevents the failure of EU funds. The decision will be officially announced in early June 2025.

New safety and Defence Fund – PLN 26 billion from KPO

In parallel to the extension of KPO, Poland received the European Commission's approval to make a fresh financial tool – Security and Defence Fund (FBIO). It will be intended for this intent PLN 26 billion from KPO funds.

Deputy Minister for Funds and Regional Policy, Jan Szyszkoexplained the scope of the Fund:

"No more negotiations with the European Commission! We have approval to establish a safety and Defence Fund with the KPO. PLN 26 billion will go to:

• construction of civilian protection infrastructure – shelters, wells, water and communication connections
• the expansion of Polish steelworks and industry, i.e. fresh places of good work in smaller cities
• construction and renovation of dual-use infrastructure, i.e. roads, tracks, landing sites and airports
• investments in cybersecurity, e.g. radars, protection of Polish data and safe retention in Poland.

Two months ago, we promised the FBI, present we deliver this promise!”

This fund is not only intended to strengthen national safety but besides to foster occupation creation and modernisation of strategical infrastructure for state defence.

Legal context and judicial caselaw

Although there is no detailed description of legal aspects in the origin text, it is worth noting that the implementation of the KPO takes place within the framework of EU rules and requires strict application of audit procedures and reporting. In the event of irregularities, the intervention of the EU Court of Auditors and the European Anti-Fraud Office (OLAF) is possible.

In the past, in akin cases, e.g. in assessing the implementation of the Structural Funds, the ultimate Court and the EU Court of Justice have issued judgments on the request to meet formal and targeted conditions utilizing EU funds. specified precedents are crucial in the control process and may influence subsequent decisions of the European Commission towards Poland.

Summary

Poland has achieved crucial successes in negotiations with the European Commission:

• extension of the settlement date of KPO until November 2026 save hundreds of investments,
• Establishment of the safety and Defence Fund (FBIO) with the amount of PLN 26 billion gives fresh opportunities to make the defence sector and critical infrastructure.

These decisions show the determination of the current government to implement global commitments while at the same time demonstrating an effective policy of liable management of EU funds.