BRUSSELS — On Wednesday, a ruling from the EU’s high court determined that Poland will not be reimbursed after the country faced a substantial penalty from the European Union due to its failure to comply with a judicial order aimed at reversing controversial changes to its legal system.
The court found that the European Commission acted appropriately by withholding 320 million euros (approximately $332 million) from Poland’s payments. This action was prompted by Poland’s refusal to eliminate a judicial disciplinary chamber that has been criticized for targeting judges who oppose the ruling Law and Justice party.
The General Court, based in Luxembourg, stated, “In recovering the amounts payable, the commission did not infringe on EU law.”
In 2023, Poland elected a new government led by Prime Minister Donald Tusk, known for its pro-rule of law stance and enhanced cooperation with the EU Commission. However, the challenge against the fine was still making its way through the judicial system at the time of the ruling.
Currently, relations between the EU and Poland are particularly close, especially as Poland assumes the rotating six-month presidency of the EU.
The European Commission initiated infringement procedures against Poland in 2019, marking the beginning of an ongoing conflict concerning democratic norms and the rule of law, particularly involving the nationalist administrations in both Poland and Hungary.
In 2021, tensions escalated, resulting in a daily fine of $1.2 million imposed on Poland, amid concerns regarding judicial independence and the supremacy of EU law. This ruling came after Poland’s constitutional court declared that national laws take precedence over EU regulations in conflicting areas.
Following these developments, Polish President Andrzej Duda reversed course in 2022 when faced with the suspension of significant pandemic relief funds by Brussels, which amounted to billions of euros.
Research coordinator Jakub Jaraczewski from Democracy Reporting International emphasized that this situation illustrates the European Commission’s capability to enforce fines by withholding payments.
At present, the 320 million euros fine stands as the largest imposed by the court; meanwhile, Hungary is facing its own 200 million euros (around $216 million) penalty for ongoing violations of EU asylum regulations, also despite a prior European Court of Justice ruling.
As both Hungary and Poland are significant recipients of EU funds, their dependency offers Brussels considerable leverage in ensuring compliance with financial obligations.
Both the European Commission and the Polish government are allowed two months to contest the recent decision.
