EU Warns Poland of Sanctions "May Restrict Subsidies and Voting Rights"

Dispute Intensifies Over EU Law... Poland's Backlash
EU Economic Dependence Grows, Polexit Seems Unlikely

On the 19th (local time), Ursula von der Leyen, President of the European Commission, attending the European Parliament held in Strasbourg, France.
[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Ursula von der Leyen, President of the European Commission, recently warned Poland, which is currently in dispute over EU law issues, that legal action and sanctions could be imposed. Possible sanctions that the EU could impose on Poland include withholding the disbursement of EU economic recovery funds and restricting voting rights within the EU. Although the Polish government has opposed the EU's threats and vowed not to yield, the prevailing analysis is that if Poland's exit from the EU, known as 'Polexit,' becomes a reality, the risk of an intensified economic crisis will increase, making withdrawal difficult.

On the 19th (local time), President von der Leyen attended the plenary session of the European Parliament held in Strasbourg, France, and warned that penalties could be imposed on Poland regarding the dispute over the status of EU law. She stated, "The European Commission can initiate legal action and sanctions through penalty procedures against Poland's violations of EU law," adding, "The Commission can bring the Polish government before the Court of Justice of the European Union (ECJ), the highest court of the EU, and may choose from three major responses: withholding support for Poland's economic recovery funds, restricting voting rights as an EU member state, among others."

The European Commission's warning came after the Polish Constitutional Tribunal ruled on the 7th that the Polish constitution takes precedence over EU law. This ruling was interpreted as a declaration of Poland's de facto withdrawal from the EU, sparking controversy. EU member states place EU law above national law according to the EU accession treaties.

The reason the Polish Constitutional Tribunal issued this ruling was that in March, the ECJ ruled that Poland's National Council of the Judiciary violated EU law, which Poland interpreted as interference in its domestic affairs. The National Council of the Judiciary is an organization with the authority to appoint and discipline judges, and its members are elected by the parliament. The ruling Law and Justice Party (PiS) has been criticized for using this body as a tool to seize judicial power. The European Commission has also demanded the dissolution of the National Council of the Judiciary, stating that it violates the principle of separation of powers.

On the 19th (local time), Mateusz Morawiecki, Prime Minister of Poland, attending the European Parliament held in Strasbourg, France
[Image source=Yonhap News]

At the European meeting, Polish Prime Minister Mateusz Morawiecki strongly opposed President von der Leyen's remarks. He said, "It is unacceptable to say that Poland will suffer financial disadvantages, and we will not allow the EU to threaten Poland," adding, "As the EU becomes increasingly centralized, it is dangerous to hinder the union of free nations."

Despite Poland's opposition, the European Commission's firm stance is analyzed as stemming from concerns that if the status of EU law, which is based on legal integration among member states, collapses, the disintegration of the EU itself could accelerate. President von der Leyen also emphasized, "The rule of law is the glue that binds the EU together."

Some express concerns that Poland's exit from the EU could lead to other Eastern European countries following suit, but the actual likelihood of Poland leaving the EU is expected to be very low. This is because Poland, already facing economic difficulties exacerbated by COVID-19, would suffer significant economic damage if EU economic support funds were cut off.

According to CNBC, the COVID-19 economic recovery funds allocated to Poland this year amount to 30 billion euros (approximately 41 trillion won). In a recent survey conducted by the polling firm Kantar, 87% of Polish citizens responded that Poland should remain an EU member state, considering economic issues.