City Council opposes the government’s proposal. It concerns PLN 6 billion from the European Union

The appeal reads as follows:

Bolesławiec City Council expresses its deep concern and opposition to the proposal of the Ministry of Finance, Funds and Regional Policy concerning the distribution of European Union funds for Lower Silesia under the Regional Operational Programme for 2021–27. The proposed EU budget for Lower Silesia under the ROP for 2021–2027, submitted for consultation, provides for approximately PLN 4 billion (i.e. EUR 870 million). Under the ROP for Lower Silesia for 2014–2020, PLN 10 billion (approximately EUR 2.2 billion) was available. This means that in the new allocation of EU funds for 2021–2027, Lower Silesia would receive PLN 6 billion less.

Lower Silesia has one of the country’s greatest levels of internal, subregional development disparities. It should be stressed that both Sudeten subregions, inhabited by more than 1.2 million people, record the lowest GDP per capita development indicators in relation to the EU average (2017 data: Jelenia Góra Subregion 54%, Wałbrzych Subregion 51%), comparable to those of the regions of eastern Poland.

From the perspective of recognising the whole of Lower Silesia as a transition region, the threshold of 75% of GDP per capita is met by only 38% of the population living on just 19% of its area. The significant internal disparities in Lower Silesia are confirmed by the dispersion indicator in the individual subregions. In 2016, it stood at 31%, meaning that GDP in the individual subregions, weighted by population, differed from the regional average by 31%. This is a level of disparity higher than the national average of 21%. It should be noted that in 2004 the disparity indicator for our region was 27%, which demonstrates the deepening internal development differences in Lower Silesia. Lower Silesia has a high urbanisation rate, amounting to 68.6% of the total population in 2018. Of the 122 Polish cities losing their social and economic functions, as many as 15 are located in the two Sudeten subregions with the lowest GDP per capita indicator, including Bolesławiec. It is difficult to accept that, with such a slight exceedance—by 2 percentage points—of the development level for transition areas (77% of GDP per capita in 2017), Lower Silesia is to receive such a significantly lower allocation for the Lower Silesian ROP 2021–2027, which may contribute to developmental regression. Lower Silesia is the country’s fifth-largest region by population, one of the most important indicators, because EU funds are intended to improve the living standards of all EU residents.

Meanwhile, Lower Silesia has the lowest level of allocated funds per resident—approximately EUR 300. It must be clearly stated that, compared with the current programming period, this represents a huge decrease (in 2014–2020, the indicator exceeded EUR 700 per resident). The regions of eastern Poland, additionally covered by the National Operational Programme Eastern Poland and having GDP per capita comparable to that of the two Sudeten subregions, will receive a higher allocation per resident!

Bolesławiec City Council does not accept such drastic differences in the allocation of funds—more than three times less per resident than in the regions of eastern Poland and Mazovia, and 2.5 times less per resident than in the neighbouring Lubusz and Opole regions. Such action is in flagrant contradiction with one of the key objectives of the Strategy for Responsible Development, namely increasing Poland’s territorial cohesion.

Bolesławiec City Council wishes to stress firmly that it is illegitimate to combine compensatory funds from the Just Transition Fund (JTF), intended to mitigate the effects of the unfinished economic transformation of coal regions (under the Regulation of the European Parliament and of the Council establishing the JTF, the Wałbrzych Subregion is covered by this fund), with structural funds allocated to the whole of Lower Silesia.

The allocation of EUR 870 million proposed for Lower Silesia—or the EUR 140 million increase recently signalled in the media—does not provide an opportunity to implement further development projects in the Sudeten subregions, which have fewer investment resources and, in the current programming period, are burdened with a higher level of project co-financing requiring a 30% own contribution. Smaller Lower Silesian cities losing their social and economic functions, and municipalities identified in the report by the Polish Academy of Sciences team led by Professor Przemysław Śleszyński as marginalised areas, already face enormous difficulties in applying for funds with a 15% own contribution under the current perspective. Without additional support, they will be deprived of the possibility of implementing further investment projects, because they will not be able to afford an own contribution twice as large. Unfortunately, these forecasts are further confirmed by the current epidemiological situation, which is exceptionally severely affecting the Sudeten subregions, whose economies are strongly dependent on tourism and health-resort services. The vast majority of Sudeten municipalities and their residents are closely connected with tourism. Meanwhile, the lockdown continuing uninterrupted for almost a year—with a break during the holiday period—is already causing negative consequences: declining revenues, the collapse of the economy and, consequently, the labour market, which will lead to a reduction in the living standards of the area’s residents. The recovery of the Sudeten subregions, which were already less developed, from the socio-economic collapse caused by the COVID-19 pandemic will require considerably greater funds for their development—something that such a low allocation under the ROP for Lower Silesia in no way guarantees.

In view of the above, Bolesławiec City Council calls for an increase in the total allocation under the Lower Silesian ROP, taking into account not only statistical indicators and the region’s transition status, but above all the socio-economic challenges and the actual development needs of the residents of both Sudeten subregions. Bolesławiec City Council does not accept the drastic reduction in the allocation for Lower Silesia in the current 2021–2027 programming period—by as much as 61.4% compared with the previous period. We call for the application of a mechanism for transferring funds between the different categories of regions in Europe under Article 105 of the Common Provisions Regulation, thereby increasing the allocation for transition regions.

Municipal officials:

The justification for adopting the resolution is that addressing the Prime Minister and the Minister of Finance, Funds and Regional Policy with an appeal concerning the need to increase the allocation from the EU budget for Lower Silesia under the Regional Operational Programme for 2021–27 is necessary because the funds proposed for Lower Silesia during the consultation process are drastically lower.

They add:

Earlier submissions by the Lower Silesian Regional Assembly, the signatories of the SUDETY 2030 agreement, the convention of commune heads, mayors, city presidents and county heads of the Jelenia Góra region and part of the Legnica region, as well as parliamentary interpellations on this matter, are based on the unacceptable level of allocation and the excessively drastic reduction of the Regional Operational Programme for Lower Silesia for 2021–27. The Council of Ministers has the possibility of compensating for this shortfall from the reserve.

What do you think?