Poland will receive 500 million euros as part of an EU plan to fight the finance crisis, it was agreed, Thursday, at the spring summit currently on in Brussels.

During the two-day EU summit member states have agreed to spend five billion euros to stimulate economies in the wake of the economic crisis.

Czech Prime Minister Mirek Topolánek, currently head of the rotating six month EU presidency, said last night that, “We have agreement in principle on the allocation of this infrastructure recovery plan.”

But what the money will be spent on has proved divisive within the 27 nation bloc.

“The point is that financing should actually stimulate economies,” said president of the European Commission, Jose Barroso,

The planned Nabucco pipeline – taking gas from the Caspian sea via Turkey to western Europe  - is proving particularly divisive. Poland supports the project, while Germany is against. Chancellor Merkel insists that all projects to receive EU money must be underway within two years.

"Otherwise, it wouldn't really be a recovery plan for the current economic crisis,” said Merkel.

Berlin is also keen to drive ahead with a rival gas pipeline project – Nordstream – which was greed between Germany and Russia and would take gas to western Europe but bypass Poland.

But EU leaders agreed last night that funds will go to the Nabucco project if it gets underway in the next two years.

Other projects on the list, which will be agreed formally by leaders Friday, are some 180 million euros assigned for power plants in Belchatow, central Poland and 80 million euros for the construction of the gas terminal in Swinoujscie, northern Poland.  

The EU will also give funds for the development of broadband Internet in rural areas of Poland. 

A condition was made by Germany: all the funds need to be spent by 2010, otherwise they will go to waste. (pg/jm)