Polish Government appears to renege on deal with European Union

There is clearly something wrong with relationships when a former President of the European Council decides to effectively renege on a financial deal done between Poland and the European Union.

Poland decides that it will not honour EU deal to scrap ‘junk contracts’ agreed by previous Government

The previous Polish Government (PiS) agreed in December of last year that it would overhaul what are known in Poland as ‘junk contracts’ similar in many ways to the outdated but still existing British Zero-hours or casual contracts.

In Poland they are considered a method to allow employers to reduce labour costs as there is no employment or wage protection, rights to holidays and payment of social insurance contributions.

The December agreement unlocked EU funds for Poland

All of this was agreed in December last with a commitment to make social insurance contributions by the employer mandatory as well as the introduction of proper contracts.

This was part of a deal which released EU Recovery Funds, so the sudden decision by the Donald Tusk Government raises the question of whether the deal itself becomes null and void, meaning that funds received (if any) may have to be returned to the EU.

Polish ministers have confirmed that the financial burden, which they estimate as being between 5 and 7 billion zloty (€1.15 to €1.6 billion) appears simply to much of a burden on employers.

Whist some ‘junk contracts’ appear valid as they are short term (such as musicians engaged for specific performances) there are still numerous workers who need the financial security which this previously approved plan would have given them.

Time will tell whether there is any change of heart on the Tusk side and whether other member states such as neighbour Germany will have any influence in the matter.