Poland approves development plan, decentralised modernisation budget

The Polish government on Tuesday approved a national development plan that calls for 140 billion euros (184 billion dollars) allocated to modernising the country to be shared among the country's 16 regions.

Between 61 and 73 billion euros of the development funds will come from the European Union and another 30 billion euros from private donors. The development plan covers the years 2007 to 2013.

Precisely how the funds are used will be left to the regions and local governments, based on what projects have been put in place on the ground, Economy Minister Jerzy Hausner told a press conference.

"To effectively absorb this money, far-reaching structural reform will be necessary. We must decentralise, we must extract ourselves from the straitjacket of the ministries," Hausner added.

The development plan will be put to "a broad debate" that will include the government, opposition parties, workers' groups and unions.

"This plan is not this government's private property. Other governments and parliaments will turn it into a reality," Prime Minister Marek Belka said Tuesday at a separate press conference.

Poland is due to hold legislative elections and a presidential election this year.