The decision by the European Commission to trigger an Article 7 procedure against Poland is unlikely to have a major impact on the economy in the short-term. Poland’s structural fund inflows can’t be removed as part of the Article 7 procedure and the most extreme sanction that could result – a removal of voting rights – is unlikely to be imposed. But Poland’s constant run-ins with the EU do risk souring the country’s image among foreign investors, which could weigh on economic growth in the medium-term.
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