EU Court Upholds Penalties Against Poland for Turow Mine Operations

EU Court Ruling on Turow Mine

WARSAW, Jan 22 (Reuters) - The European Court of Justice has dismissed Poland's appeal against penalties imposed on Warsaw for failing to halt operations at the Turow lignite mine, which has been the subject of a long-running legal battle.

Background of the Case

The EU's top court in 2021 imposed a daily fine of 500,000 euros ($584,400) on Poland for not closing its Turow lignite mine and power plant, situated on the border with the Czech Republic. This followed a complaint from Prague that Turow operations were endangering water sources of residents across the border.

Poland's previous nationalist government had refused to comply with the court ruling and the European Commission withheld 68.5 million euros from funds the EU had been due to pay Warsaw as part of regular transfers from the bloc.

Settlement with the Czech Republic

In 2022, Warsaw and Prague reached a settlement, under which Poland paid the Czech Republic compensation for infrastructure upgrades in return for the mine being allowed to continue operating.

Implications of the Ruling

In 2024, the EU General Court ruled that the EU executive had the right to withhold cash from funds assigned to Warsaw to cover the fines. Poland's new centrist government has asked the court to annul the ruling and the fines.

"The actions of the parties to the dispute, including the conclusion of a settlement agreement, cannot have the effect of retroactively varying, annulling or setting aside an order imposing such a periodic penalty payment," the EU top court said.

"By ensuring that EU law is complied with, it also retains a preventive, rather than punitive, character, contrary to what Poland claimed."

($1 = 0.8556 euros)

(Reporting by Marek StrzeleckiEditing by Alexandra Hudson)