1 8 - 12 September 2014 | SPECIAL REPORT | POLAND: AMBITIOUS ACHIEVERS | EurActiv SPECIAL REPORT | 8 - 12 September 2014 With the support of POLAND: AMBITIOUS ACHIEVERS http://www.euractiv.com/sections/poland-ambitious-achievers Contents Poland ‘can offer economic recipe’ to the EU ...................................................p.1 Poland’s stake in the Ukraine crisis: hawkish or insightful? ........................p.9 Analysts: Weimar Triangle key for Poland’s new role in EU ..........................p.3 Sikorski: If Poland is hawkish on Ukraine, is Russia a dove? ..................... p.11 Poland hopes Tusk will create an EU Energy Union ........................................p.6 Shale gas in Poland - from exploration to exploitation .............................. p.12 Buzek: Energy independence is the best sanction against Russia .............p.7 Poland ‘can offer economic recipe’ to the EU Poland has proven it is possible to sustain economic growth without relaxing fiscal discipline, MEP Jacek Saryusz-Wolski told EurActiv. 2014 is a special year for Poland, as the country marks 10 years of EU accession, Polish, EU and NATO flags. Poland, May 2007. [Pawel Kabanski/Flickr] 15 years of NATO membership and 25 years since the fall of communism (see background). 16th century, Poland had already been “a The Polish economy has also grown In honor of the occasion, EurActiv great country in Europe”. faster than that of the EU, by 49% since asked Polish commentators to describe the “It was Polish commonwealth in which 2003, while the average figure for the rest country’s economic and social renaissance . today’s Lithuania, Ukraine and Belarus of the Union is only 11%. The slow growth Asked if Poland, a country with many were a kind of pioneer of federal Europe. It in the rest of the EU was due, among other low points in its history was at its peak was a multinational community based on things, to the economic crisis – which today, Saryusz-Wolski, who is also Vice the will of being together, on tolerance and Poland has successfully managed to avoid. President of the centre-right European democracy,” he said. But even when compared with the Peoples’ Party (EPP), said that his country other nine countries that joined the Union had rather returned where its place should Good practices in 2004 (the Czech Republic, Slovakia, normally be. Hungary, Slovenia, Estonia, Latvia, “Poland’s position in Europe and in the EU membership has benefited Poland, Lithuania, Malta and Cyprus), Poland wider transatlantic world is consolidating, and even before the country’s accession, was still outperforming the EU – their but I wouldn’t call that a novelty or an there was a steady flow of economic economies grew on average by 27%, twice extraordinary situation, because we are just support from Brussels – not only in terms as good as the EU as a whole, but twice as coming back to the situation which would of money transfers, but also investment little as Poland. be the reality without the tragic decisions and, last but not least, good practices and According to Saryusz-Wolski, there from Yalta,” said Saryusz-Wolski, refering regulatory requirements. are two explanations to Poland’s economic to the conference in Crimea of February According to official data, Polish miracle, which account for the fact that the 1945 where Stalin obtained a free hand in GDP in 2013 was almost twice as big as country didn’t experience recession during Poland from Roosevelt and Churchill. it was in 2003, at €390 and €201 billion, The Polish MEP stated that in the respectively. Continued on Page 2 2 8 - 12 September 2014 | SPECIAL REPORT | POLAND: AMBITIOUS ACHIEVERS | EurActiv Continued from Page 1 1989 was 75.5 years for women and 66.7 Regional improvements the Eurozone crisis. years for men, while in 2013 it is 81.1 years First, he said that this was thanks to for women, and 73.1% for men. Reality speaks stronger than statistics. the “very healthy fundamentals of the Asked if the reasons of this rise in life By walking around any city, town, or even a economy”. expectancy was due to the fact that Poles small village in Poland, one will encounter “We owe it to the very radical and today drink less vodka, preferring wine or something funded, at least partially, with extremely painful ‘shock therapy’ of Leszek beer, Saryusz-Wolski joked that “possibly EU funds: be it a new water treatment Balcerowicz’s economic transformation they will drink more cider” now, referring plant, a new road or a renovated historical program in the 1990s. This is something we to the apple surplus following the self- monument. paid a high price for, but it pays off now,” imposed Russian ban of imported foods These improvements are part of the he said. At that time, Balcerowicz was from the West. excellent record Poland has in efficient Deputy Prime Minister in the government Since EU accession, between 2003 use of the EU resources. And it will have of Tadeusz Mazoviecki. and 2013, unemployment in Poland an opportunity to prove it once more. The second reason, Saryusz-Wolski almost halved, from 20% to 13.4%. Not Poland has managed to secure €82 billion argued, was the principle of fiscal health, all of that decrease was an effect of the EU in the EU budget for the years 2014- of fiscal balance, which in his words was membership. But the Polish Ministry of 2020, a quarter of all the funds the EU has observed, to various degrees, by successive Regional Development in 2010 attributed earmarked for the convergence policy. Polish governments over the last two a 1.5-3.5% rise in employment to funds Orłowski pointed out the many decades. from the EU. Overall, 800,000 more changes brought by the EU. “Legal “Those two factors made it possible to people are being employed after 10 years harmonisation with the EU has allowed reconcile the two major postulates of the in the Union. Poland to become more attractive for the Eurozone recipe against the crisis: how to Infrastructure investments are also investors” is one of the examples quoted by have both growth and fiscal consolidation. helping improving the quality of life him. Indeed, while in 2003 foreign direct Without being tempted toward fiscal in Poland. New water treatment plants investment (FDI) barely reached €50 relaxation, and without overplaying fiscal (almost 700 were built, expanded or billion, it has grown steadily ever since, rigour that kills growth. That’s probably modernised) allow the water in Polish reaching €152 billion in 2013. what we can try to offer to the EU, as an rivers be cleaner. Poles can now drink tap But, as Orłowski emphasised, “there example. How to combine growth and jobs, water in places where it was inadvisable 10 were many cases of synergy between aspects versus fiscal rigour, is one of the possible years earlier. of the EU membership. For example, contributions of Poland to the economic Despite such investment, there improvements in infrastructure have made philosophy of the Union,” he said. are claims that Polish economy lacks Poland more attractive to the investors”. innovative capacity. Asked what is the And that, in turn, has resulted in even Communist refrigerator biggest economic challenge that Poland higher investment. will have to face in the near future, The wealth gap between Polish citizens Professor Witold Orłowski, the director The negatives and the EU average is closing. While in of Warsaw Technical University’s School 2003, GDP in Poland was less than a half of Business, acknowledged that if Poland Yet despite all these positive changes, the EU average (48.8%, to be exact), 10 wants to catch up with the West, it should Poland still has a lot of catching-up to years later it was more than two-thirds also invest in knowledge-based growth. do. Certain regions in Poland are among (68%). “Low innovation is actually the poorest in the EU, with only parts of Saryusz-Wolski admits that the understandable in a country that still has a Bulgaria and Romania scoring lower. benefits of EU integration are visible for lot of room to grow thanks to the ‘standard’ Furthermore, not all changes brought Polish citizens, but, inequalities have risen, methods: investments, technology by EU membership are necessarily positive and the rise of poverty is also a fact. imports, better organisation of labour, for the Polish economy. The last year has “Poland had the same level of wealth more efficiency on the world markets. But witnessed a significant campaign in the at the end of WW II as Spain. Now the in the long term, if Poland wants to catch Polish media criticizing the new Tobacco distance is at least double, so we have up with the West and not just shorten the Directive. Its introduction threatens the a lot of catching up to do. This is the distance, it has to focus on three aspects: strong tobacco industry in Poland – a sector price for having been in the communist cooperation, entrepreneurial skills in the that employs 50,000 people, and contributes refrigerator,” he said. population, and the knowledge-based billions of euros to the state budget. One of the measurements of improved growth. The ‘standard’ reserves will not be living condition is life expectancy, which in enough,” Orłowski argued. Continued on Page 3 EurActiv | POLAND: AMBITIOUS ACHIEVERS | SPECIAL REPORT | 8 - 12 september 2014 3 Continued from Page 2 reflected in very practical work. “If you think Even more controversial are Analysts: about the Polish EU Presidency [second half regulations regarding energy and of 2011], there were many joint projects with environment. Coal is – and will be for the Weimar Germany, which were also then realised,” foreseeable future – the primary source mentioning among them the debt ceiling of energy in Poland.