The EU Funds Paradox: Who Really Benefits from Poland’s €245 Billion?

Since joining the European Union in 2004, Poland has received approximately €245 billion in EU funds while contributing around €77 billion—making it the largest net beneficiary in the bloc’s history. This massive financial transfer is often cited as evidence of European solidarity and Poland’s successful integration. However, a closer examination reveals a more complex picture: a significant portion of these funds may have effectively circulated back to Western European economies, raising questions about who ultimately benefits from EU cohesion policy.
The Numbers Tell Part of the Story
The scale of EU transfers to Poland is unprecedented. Between May 2004 and the end of 2023, Poland received a gross amount of €245.5 billion from the EU budget, with almost two-thirds (€161 billion) allocated to cohesion policy projects and less than one-third (€76 billion) to agricultural support (Gazeta SGH) . These funds have financed thousands of infrastructure projects, from highways and railways to renewable energy installations and digital networks.
The official narrative emphasizes Poland’s development success. According to European reports, 82% of Polish citizens are informed of EU cohesion policy, making Poland the most aware EU country (Europa) . Infrastructure has visibly improved, with new roads, modernized railways, and upgraded utilities transforming the landscape.
The Return Flow: Following the Money Back West
Yet the story becomes more complicated when examining where the money actually goes. EU-funded infrastructure projects in Poland frequently involve contracts awarded to Western European corporations, particularly from Germany, France, and the Netherlands. Major construction firms like Strabag (Austria), Bouygues (France), Vinci (France), and numerous German contractors have captured substantial portions of Poland’s infrastructure spending.
In renewable energy, a sector heavily supported by EU funds, international firms such as Germany’s RWE Renewables, Portugal’s EDP Renewables, and French companies Mirova Anemoska and Qair are all actively contributing to Poland’s wind generation industry (European Council on Foreign Relations) . While Polish companies like PGE and Polenergia participate, foreign firms hold significant market share.
France ranks second after Germany in terms of foreign capital invested in Poland, with French companies’ cumulative investments in 2022 amounting to about PLN 108 billion, representing over 9% of total FDI in Poland (Trade.gov.pl) . These investments create jobs and transfer technology, but they also generate profit streams that flow back to parent companies in Western Europe.
The Mechanisms of Return
Several channels facilitate the return of EU funds to Western economies:
1. Contracts and Procurement
Infrastructure projects funded by EU money often require specialized expertise, equipment, and materials that Polish companies cannot always provide at scale. This creates opportunities for Western European contractors who have the technical capacity and financial resources to bid on large projects.
2. Technology and Equipment Imports
When Poland builds new infrastructure, much of the advanced technology, machinery, and equipment comes from Western European manufacturers. Germany alone is Poland’s largest trading partner, and Polish imports from Germany significantly exceed imports from many other countries (Trade.gov.pl) .
3. Consulting and Professional Services
EU-funded projects require extensive planning, environmental assessments, legal compliance, and technical consulting—services frequently provided by Western European firms with EU project experience.
4. Profit Repatriation
French companies operating in Poland showed an increasing tendency to reinvest their profits, with the reinvestment rate rising from around 25% in the early 2010s to almost half of annual profits in 2019-2022 (Trade.gov.pl) . This still means roughly half of profits leave Poland, and similar patterns exist for German, Dutch, and other Western European investors.
Poland’s Contribution Beyond Cash
Poland provides substantial value to Western European economies beyond just being a market for goods and services:
Skilled, Cost-Effective Labor
Labour costs in CEE are around 50% cheaper than in developed Europe, but the workforce is equally if not better qualified (BNP Paribas CIB) . This attracts Western European companies seeking to reduce costs while maintaining quality—a form of subsidy through wage differentials.
Large Consumer Market
Poland’s 38 million people represent a significant market for Western European products and services, with EU funds helping to increase purchasing power.
Manufacturing Hub
Poland has become deeply integrated into Western European supply chains, particularly for the German automotive industry, providing components and assembly services that support jobs in Western Europe.
A More Nuanced Reality
The truth lies between the extremes. It’s an oversimplification to say Poland "received" €245 billion as if it were free money deposited in national accounts. It’s equally misleading to claim all funds simply returned to Western Europe.
Research comparing EU transfers with foreign direct investment notes that FDI to Poland accounted for approximately 3.4% of GDP between 2003-2020, making net annual EU budget inflows about 70% of average annual FDI (Gazeta SGH) . Importantly, the analysis recognizes that FDI would not have been so large if Poland was not an EU Member State, and if European funds did not improve its infrastructure, legal stability, and other conditions for business activity (Gazeta SGH) .
The EU funds created a foundation that enabled broader economic development. Poland’s GDP has grown dramatically since EU accession, unemployment has fallen, and living standards have risen substantially. Many infrastructure improvements—from sewage systems to digital networks—provide genuine public benefits regardless of who built them.
The Broader Question: Development or Dependency?
This pattern isn’t unique to Poland. Central and eastern European countries, Greece and Portugal receive EU funds equivalent to between 25-40% of their 2021 economic output (Scope Ratings) . Similar dynamics of contract capture and profit repatriation exist across the region.
The key question isn’t whether funds "return" to Western Europe—market economies naturally involve cross-border flows. Rather, it’s whether EU cohesion policy achieves genuine convergence or creates a more sophisticated form of economic dependency where peripheral economies remain structurally subordinate to core economies.
Poland is gradually becoming less eligible for EU support as its GDP per capita approaches EU averages, and may soon become a net contributor to the EU budget (Gazeta SGH) . This transition will test whether EU funds successfully built sustainable development or created infrastructure that still depends on Western European technology, expertise, and capital to function.
Conclusion: Following the Full Circle
Describing EU funds to Poland as "basically a lie" goes too far—the infrastructure is real, the jobs created are real, and the economic development is measurable. But describing it as pure generosity from wealthy to poor regions misses crucial dynamics.
A more accurate description might be: EU cohesion funds are an investment mechanism that simultaneously develops peripheral economies while creating markets, supply chains, and profit opportunities for core economy corporations. Poland benefits from improved infrastructure and economic growth. Western European companies benefit from contracts, markets, and returns on investment. The EU as a whole benefits from greater integration and reduced regional disparities.
Whether this constitutes a fair exchange or an asymmetric relationship depends on one’s perspective and time horizon. What’s clear is that the simple headline figure—"Poland received €245 billion"—tells only a fraction of a much more complex economic story