The European Investment Bank is questioning plans to subsidize electric bicycles. This type of program was established by the Polish authorities.
Plans to create a subsidy program for the purchase of electric bicycles appeared in July this year. The National Fund for Environmental Protection and Water Management (NFOŚiGW) has announced that it plans to release PLN 300 million from Modernization Fund resources for this purpose.
“The proposed program provides subsidies for the purchase of new electric bicycles, including cargo bikes and strollers. The planned subsidy amounts to a maximum of 50 percent and not more than PLN 5,000 in the case of electric bicycles and not more than PLN 9,000 in the case of electric bicycles and strollers. The grant will be available to individuals, local authorities and entrepreneurs as specified in the draft programme. After public consultations, the process of approving the principles of the priority program will begin,” the National Fund for Environmental Protection and Water Management argued.
‘No’ to subsidies for electric bicycles
The Polish institution’s plans were opposed by the European Investment Bank. The EIB ruled that the arguments in the application for project financing were insufficient.
As experts note, a negative EIB decision could spell serious trouble for electric bicycle sellers. In anticipation of the introduction of the subsidy program, they purchased large numbers of vehicles, based on demand. Now they may have trouble selling bikes because customers will most likely wait to buy until the government support program starts.
The National Fund for Environmental Protection and Water Management, established in 1989, provides loans, grants and other forms of financing for projects implemented, among others: by local governments, companies, public bodies, civil society organizations and individuals. In the public financial sector, the National Fund is also the largest partner of international financial institutions in Poland in dealing with foreign funds intended for environmental protection.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
