Poland - Europe’s Economic Success in 2015
In your opinion, will the current economic upturn last, and if so, what challenges must Poland overcome? Looking at fundamentals, the Polish economy is in a very good situation. Strong growth of GDP, low budget deficit, stable prices and the predictable political environment in combination with 38.5 million consumers must make an impression on investors. Many of them have taken the advantage of business expansion in Poland and now they are – in most cases – very pleased with that. To maintain rapid growth in the future the Polish authorities must, first of all, create conditions reducing bureaucracy in the public sector and encouraging entrepreneurs to be more active. An example of how to facilitate business activity is our special economic zones (SEZ). Currently in Poland we have 14 SEZ, operating in many locations, in different parts of the country. Companies willing to invest in SEZ are able to benefit from: tax exemption, a plot of land fully prepared for the investment at a competitive price, free-of-charge assistance in fulfilment of formalities and real estate tax exemption (applies to some municipalities). In total, almost €25bn has been invested in SEZ up till now. One of the latest examples – VW – is now building its new car assembly plant within the Wałbrzych Special Economic Zone. The whole investment amounts to €800m. It will start operating in 2016. Which sectors have seen the most activity and has this changed compared to the previous years? Where do the greatest opportunities for investors lie? A wide range of industries have very favourable circumstances for development. The automotive and renewable energy industries are especially worth mentioning. In recent years Poland has become a huge production facility for the automotive industry. This could be hard to believe, when only looking at car assembly plants, but when one focuses on the production of components, it is apparent, that the Polish automotive industry is fast growing and has a very strong position in Europe. This success was possible due to wide access to a qualified and motivated labour force managed by very good engineers. When describing the renewable energy industry, one must point out, that the Polish energy industry is currently strongly based on coal. According to the environmental policy, firmly supported by the EU, this will not be tenable in the future. Green energy is an obvious resource to replace fossil fuel in part. Currently available technologies enable it to be produced quite cheaply and safely.
Acquisition International - February 2015 97