EU unfreezes Polish road subsidies

(WARSAW) - The European Union on Wednesday released subsidies for new Polish motorways, months after freezing them over suspicions of price fixing, Polish officials said.

The European Commission suspended the payment of 957 million euros ($1.2 billion) in January after Polish prosecutors pressed charges against 11 people for alleged price fixing in tenders for road works co-funded by the EU.

"The European Commission accepted our explanations and released the funds," the ministry for regional development said in a statement Wednesday.

"It's excellent news. We've been waiting for it for a while. From the very beginning we've said our funds for road building are not at risk," Transport Minister Slawomir Nowak added.

The total sum frozen by the Commission was part of a larger four-billion-euro package destined to upgrade the country's often derelict communist-era road infrastructure.

The decision to freeze the funds had sparked furore in Warsaw, which suggested it discouraged authorities from pursuing corruption investigations.