Financial Mirror (Cyprus)

The possibilit­y of Polexit

- By Slawomir Sierakowsk­i Slawomir Sierakowsk­i, founder of the Krytyka Polityczna movement, is Director of the Institute for Advanced Study in Warsaw and Senior Fellow at the German Council on Foreign Relations.

After the Soviet Union collapsed, Poland’s greatest dream was to join the European Union and NATO. Scarred by Nazism and then communism, Poles longed for a fresh start, and membership in NATO and the EU became a goal that transcende­d politics.

EU membership was considered so important that Polish liberals pointedly refrained from taking up divisive issues concerning Polish history or the Catholic Church. Even Pope John Paul II (a Pole) got involved, pushing the slogan “from the Union of Lublin to the European Union,” in reference to the 1569 pact that finalized the unificatio­n of Poland and the Grand Duchy of Lithuania (under which today’s Poland, Belarus, and Ukraine comprised a single, democratic­ally governed state). In 2003, more than three-quarters of Poles voted in favor of EU membership.

Eighteen years later, Polish support for EU membership stands near 90%. The EU thus enjoys a democratic mandate stronger than any achieved by a Polish government since 1989, owing primarily to two factors: national security and the economy. The EU is widely seen as the guarantor of Polish independen­ce, which has for centuries been threatened by Russian imperialis­t ambitions. When Poles see Ukraine being tormented by Russia, they see their own fate were it not for the EU and NATO.

Similarly, Poles rely heavily on the EU for economic developmen­t. In 1989, Ukraine had a higher per capita GDP than Poland. Today, Ukraine’s per capita GDP (based on purchasing power parity) is $13,060, whereas Poland’s is $34,265. If Poland had followed the Ukrainian path, its economy would currently be performing at the same level as in 2001.

Miroslaw Gronicki and Ludwik Kotecki of the European Financial Congress (and previously of Poland’s Ministry of Finance) calculate that from EU accession in May 2004 through July 2021, Poland received more than EUR 206.8 billion ($240 billion) in cohesion funds. That is more than twice the country’s entire 2021 budget. And with the Law and Justice (PiS) government having negotiated EUR 160 billion for Poland over the next seven years, the country will likely remain the largest beneficiar­y of EU funds within the bloc.

In typical fashion, the government has already plastered the country with billboards proclaimin­g the astronomic­al sum of ZL 770 billion in new funds, without mentioning that the money would be coming from the EU. Yet while the billboards have already been paid for, the EU funds have not been secured, because the European Commission has since suspended its approval of Poland’s National Reconstruc­tion Plan.

EU Commission­er for the Economy Paolo Gentiloni has said that the European Commission is suspending the approval of the Polish National Reconstruc­tion Plan, owing to the steady erosion of the rule of law in Poland. A recent decision by the Constituti­onal Tribunal, which denied the supremacy of EU law – the basis of EU membership itself – was the last straw. Having already agreed to support the debt mutualizat­ion through which the National Reconstruc­tion Plan will be financed, Poland now stands to bear the costs of the EU recovery fund without sharing in the benefits.

The EU has every reason to worry about the illiberal and anti-democratic reforms that Poland’s PiS government has implemente­d during the past six years. The government’s politiciza­tion of Polish courts, for example, has implicatio­ns extending far beyond Poland, because judgments in one EU member state are expected to be recognized and enforced in all others. Moreover, Poland has signaled that it does not want to implement EU court rulings intended to protect judicial independen­ce.

By design, numerous PiS politician­s sit on the Constituti­onal Tribunal, including the authors of the government’s judicial reforms, Stanislaw Piotrowicz and Krystyna Paw∏owicz, who once called the EU flag “a rag.? Leaked emails from the chief of the chanceller­y, Prime Minister Mateusz Morawiecki’s right-hand man, provide strong evidence that PiS directly controls Julia Przyl´bska, the head of the Tribunal. In the leaked messages, PiS politician­s report on their meetings with Przylbska, during which they discuss judicial appointmen­ts and other decisions. One therefore must assume that PiS leaders dictated the Tribunal’s decision rejecting the primacy of EU law.

The European Commission has made clear that Poland must back down in order to receive EU funds. But the PiS government has doubled down. According to Adam Glapiƒski, the president of the National Bank of Poland, “We will manage very well without EU funds.”

But why would the government gamble with its reconstruc­tion plan? One factor is the recent decision by a group of MPs led by Jaroslaw Gowin to quit the ruling coalition. The government thus has become even more dependent on a group of MPs led by Minister of Justice Zbigniew Ziobro, who staunchly opposes any agreement with the EU in which funding would be made conditiona­l on Poland’s compliance with the rule of law. Because Ziobro is competing against Morawiecki for the mantle of aging PiS leader Jaroslaw Kaczyƒski, he stands to benefit politicall­y from the failure of the current government’s signature economic initiative, the “Polish Deal” – which was to be financed by the National Reconstruc­tion Plan.

On the other side is the opposition with its new leader, Donald Tusk, a former Polish prime minister and former president of the European Council. Tusk’s strategy is to publicize the fact that PiS is steering the country toward a “Polexit.” His message appears to be sinking in. On October 10, immediatel­y after the Constituti­onal Tribunal’s ruling, as many as 100,000 protesters turned out in Warsaw, and similar demonstrat­ions were held in 120 other cities.

It is hard to say what the government will do now. It has painted itself into a corner with the Constituti­onal Tribunal’s ruling, depriving itself of the money it needs to shore up its chances in the 2023 elections. It is becoming increasing­ly possible that PiS is willing to sacrifice not only EU funds but even Poland’s EU membership, just to cling to power. © Project Syndicate, 2021. www.project-syndicate.org

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