ten years in the eu: what has changed in poland

TEN YEARS IN THE EU: WHAT HAS CHANGED IN POLAND

PIOTR ARAK Senior Analyst for Social AffairsANDRZEJ BOBIŃSKI Senior Buisness AnalystADAM CZERNIAK Chief EconomistIGNACY NIEMCZYCKI Senior Analyst for European AffairsROBERT TOMASZEWSKI Buisness AnalystMAREK WĄSIŃSKI European Affairs AnalystPIOTR ŻAKOWIECKI Analyst for Social Affairs

May 2014

DOSSIER

TEN YEARS IN THE EU: WHAT HAS CHANGED IN POLAND 2

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What have the funds becomeThanks to EU funds, Poland has better roads, as well as more sewage treatment plants, modern buses and trams. The Ministry of Infrastructure claims that, thanks to competent investment of EU funds, Poland’s GDP grew by an extra one percentage point annually. Poland, however, still ranks low for innovation – this year’s report of the European Commission puts it in fourth to last place. For this reason, money from the EU 2014-2020 budget should, to a greater extent, be spent on raising Poland’s competitiveness than on infrastructure.

Which motorways have been built by the EU

Largest EU projects*

How much Poland did and will receive from the EU

Advance in civilisation

SOURCE: MINISTRY OF INFRASTRUCTURE AND DEVELOPMENT

*except road and rail projects

673 km of motorways and 808 km of dual carriageways have been built since 2004.


How Poland’s GDP has grownPolish EU accession boosted economic growth, while company outputs rose by 50 per cent. The GDP growth’s driving force was primarily fast-gro-wing exports coupled with substantial foreign investment and the inflowing EU funding. Growth, however, has not been even; the wealthiest regions whose economies had earlier been linked with the West benefited the most. Consequently, although people arebet-ter off in all parts of Poland, income disparities have grown.

How average income of Poles grew

How fast was GDP growth

Items more common in Polish households

How per capita GDP changedin voivodeships

How FDI in Poland grew (EUR billion)

Largest foreign investors (EUR billion)

DATA

: GUS


Poles travel around Europe

Where most Poles went after 2004 (in thousands)

Poles temporarily living outside Poland in 2012(new and ‘old’ – before 2004 – emigration combined)

Freedom of movement in the EU has caused over a million Poles leave the country to look for work in the West. But this emigration is completely unlike waves from many years ago, when emigrating meant shutting the door on a future return, possibly for the better. A part of that group leaves Poland for several months or a year, regu-larly visiting the home country; others leave Poland only for a single stay abroad, in order to raise the necessary capital to start their own business or build a house in Poland. The young are on the move as they wish to see the world and earn some money. Only a portion of the new emigration settle abroad for good.

In what sectors Poles in the UK work

How much the emigrants send back to Poland(in billion PLN)

DANE: GUS

DATA

: NBP

DATA: POLITYKA INSIGHT BASED ON ONS

DATA

: GUS


How we have changedAs a society, we’ve become happier since EU accession. The percentage of Poles living in poverty has diminished, although the poverty boundary is shifting as income increases. We get sick less often and live longer, but these two statstics are not the consequence of healthier lifestyles – we don’t exercise much and most of us are overweight. The number of children born in Poland is falling and society is aging visibly. We tend to be more hard-working compared to the pre-accession period, while also are more socially liberal and tolerant. We are also slowly but surely becoming a more secular society.

Statistical Pole

Percentage of Poles living in poverty 2000-2012

Are you happy?

Is it OK for people to live together without being married?

What are your political views?

How many people are regular churchgoers?

Fewer children, more pensioners

DATA

: CBO

S, SO

CIAL

DIA

GNOS

IS 2

003,

201

4, G

US


Poland’s exports boom

Selected Polish export hits (value in 2013)

How Polish export grewAdvancement In The EU Exporters’ League

Poland’s EU accession opened the European market for Polish companies: after three years of membership, Polish exports doubled and, in 2013, they were more than three times higher. In this period, Poland leaped from the 12th to 8th position among major exporters - no other EU country can boast such an advancement. At the same time, the dependence of Polish companies on the EU business climate has incre-ased: this was evident in the 2009 crisis, when – due to recession in Europe – Polish exports dropped temporarily, by as much as 25 per cent.

DATA

:EUR

OSTA

T


What has changed in educationPercentage of children in kindergartens (3-6 years of age)

PISA test scores of Polish fifteen year olds

Poles at foreign universities

Investment in Polish universities (PLN)

DATA

: GUS

DATA

: EUR

OSTA

T AND

ERAS

MUS

DATA

: EUR

OSTA

T, D

EKLA

RATI

ONS

DATA

: GUS

DATA

: OEC

D

Percentage of Europeans competent in at leastone foreign language

The greatest change in education are the kindergartens built with EU money.Polish pupils are achieving better results, although this is chiefly due to national education reform. The EU has, however, changed Polish univer-sities; the division into first and second degree courses has increased mobility between both faculties and universities. More than 100,000 young Poles have found it easier to study at universities all across Europe. The eagerness of the young to study has not, however, spread to adults – Poles are lagging behind most Europeans when it comes to post-graduateeducation.


Farmers making ends meet

Where farmers get money

Change in number of farms since 2004While farmers’ income grew, the share of agriculture in GDP decreased

Where farm subsidies (euro per hectare) are highest in the EU26New tractors sold in Poland

DATA

: EC

DATA

: CEP

IKDA

NE: G

US DATA

: GUS

DATA: MF

DATA: IERIGZ

In the last decade, about PLN 120 billion has been channelled into Polish rural areas. Farms are larger and larger and farmers’ incomes have more than doubled. Export of farm produce and food have grown five times, reaching 20 billion euro last year. Despite all this, farmers’ earnings are still below the national average (85 per cent today compared with 71 per cent ten years ago). The dependence of the rural population on farming is decreasing - only one third live from agriculture. The share of agriculture in GDP is falling too; from 5.1 per cent in 2004 to 3.8 per cent last year.


How many Poles are in Brussels?

2,679

Council of the European Union 110 Poles(3.87 per cent of all the Council’s personnel) 1 director general4 heads of departments1 member of Herman Van Rompuy – European Council President’s cabinet104 in the General Secretariat

European Parliament 395 Poles(6.58 per cent of all EurParl personnel) 2 directors198 permanent officials39 contract agents49 temporary agents 106 accredited assistants

European External Action Service 90 Poles (3.93 per cent of all EEAS personnel) 4 heads of EU delegations and offices 1 deputy secretary general 1 special envoy for non-proliferation and disarmament 2 heads of departments 37 Poles in administrative positions

Jerzy BuzekMember of European Parliament in 2004-2014. He was the President of the European Parliament until 2012 – the highest position ever held by a Pole in the EU.

Jan Tombiński- EU ambassador to Ukraine, Polish ambas-sador to the EU in 2007-2012. He represents the High Representative of the Union for Foreign Affairs and is in charge of implementing the provi-sions of EU-Ukraine agreements.

Jarosław Pietras- director general for envi-ronment, energy, trans-port and education at the General Secretariat of the Council since 2008. In preparing Council meetings, he coopera-tes with EurCom and European capitals.

European Commission 1,421 Poles(4.9 per cent of all EurCom personnel) 1 budget commissioner2 directors general – for education and culture and for agriculture8 directors 33 heads of departments22 persons in commissioners’ cabinets 1,160 officials and assistants

Janusz Lewandowski - Polish budget commis-sioner since 2009. He is credited with the prepa-ration of the 2014-2020 budget, which is consi-dered favourable for Poland.

Jerzy Plewa- formerly a member of the Polish acces-sion negotiating team. In 2006, he became deputy director general at EurCom DG for agricul-ture, to become its head in March 2013.

Jan Truszczyński- deputy director at DG for enlargement from 2006, appointed director general of DG for educa-tion and culture in 2009.

Maciej Popowski- the most important Pole in EU diplomacy – deputy secretary-general since 2010. He is a member of EEAS Corporate Board, with responsibilities for inter-institutional affairs.

Poles work in EU insti-tutions*

DATA

: KE

*including support personnel

In the last decade, about PLN 120 billion has been channelled into Polish rural areas. Farms are larger and larger and farmers’ incomes have more than doubled. Export of farm produce and food have grown five times, reaching 20 billion euro last year. Despite all this, farmers’ earnings are still below the national average (85 per cent today compared with 71 per cent ten years ago). The dependence of the rural popu-lation on farming is decreasing - only one third live from agriculture. The share of agriculture in GDP is falling too; from 5.1 per cent in 2004 to 3.8 per cent last year.


Poland’s position getting stronger

Visegrad Group

EU accessionPoland entered the EU along with se-ven other countries from Central Eu-rope, as well as Cyprus and Malta. During the first years of membership, it did not create EU policies and ra-ther concentrated on defending its own interests. It was perceived as a country which was not prepared for membership, similarly to the Czech Republic and Hungary and, above all, as a pro-American state.

Lisbon Treaty negotiationsPoland managed to delay adoption of the new voting system in the Co-uncil of the EU, which was unfavourable for it. President Lech Kaczyński threatened to veto it. One year later, Warsaw made a constructive proposal – the Eastern Partnership.

Presidency of the Council of the EUIn 2009, the perception of the Po-lish economy in Europe changed – from a backward country it beca-me a “green island” of economic growth. Jerzy Buzek became head of the European Parliament. Two years later, thanks to the efficient Presidency of the EU, Poland star-ted being perceived as a new po-wer in the East.

The group was founded in 1991 and its aim was to coordinate the entrance of the Central European states to NATO and the EU. Since the enlargement, the group lost its importance, but during the budget nego-tiations, it regained some of it as the place where the beneficiary states met. Since 2013, the group’s Prime Ministers have met before each EU summit and they have submitted joint amendments for consideration. Poland is an informal leader of the V4.

The initial aim of the group was to bring Poland closer to the EU and NATO – currently, it is used for ceremonial meetings of the French and Polish Presidents and the German Chancellor. Recently, the Weimar Triangle has been revived thanks to France, which wants to counterbalance the rappro-chement between Poland and Germany. Poland uses the group as a communica-tion channel with the two biggest states in the EU.

Cooperation in this group is prestigious, but so far, it has not brought Poland any significant profits. In recent years, the Big Six has not led EU policy. Spain and Italy have been concentrated on national issues and the British government has focused on the repatriation of powers from Brussels – its activities have rather been driven by the political sympathies of its own electo-rate than concerns for the EU’s future.

Weimar Triangle Big Six

How Poland has advanced in the EU league (according to European diplomats)

What groups Poland belongs to

During the last decade, from a novice in the European Union (EU), Warsaw has become one of the leading political capitals – behind Berlin, Paris and London, and ahead of Rome and Madrid. Poland leads the Visegrad Group, Germany and France perceive it as a natural Central Europe’s representative and the Polish Prime Minister and President are considered as candidates for the most important posts in the EU. However, without adopting the euro, Poland will not be able to fully exploit its position – currently, it is the euro zone which is the economic and political heart of Europe.

Budget negotiationsAt the final stage of the negotia-tions, Warsaw, along with Berlin and Paris, worked out a plan to reach a budget compromise. The budget ne-gotiations enabled Poland to enter the top league of the EU. When, at the end of 2013, the crisis in Ukra-ine broke out, it was Poland which led the EU’s activities in the East.


Large Polish companiesSince joining the European Union, the ten largest companies in the country have increased their revenue from PLN 133 billion to over PLN 332 billion. Seven of them are still state treasury-controlled – one less than before joining the EU. The Płock-based PKN Orlen consistently tops the list. Over the last ten years, Jeronimo Martins (owner of Biedronka), energy companies Tauron and PGE, as well as Eurocash (a network of food wholesalers) have joined the list. Kompania Węglowa, Telekomunikacja Polska (now Orange), Polskie Sieci Energetyczne and Polskie Huty Stali (now ArcelorMittal) have dropped off the list. What’s interesting, among ten largest Polish exporters, six are foreign companies.

Poland’s largest companies by revenue (in PLN)

Largest exporters (in billions PLN)

Net sales revenue of domestic companies (in billions PLN)

Poland’s largest employers

Companies with the largest share of innovation spending in relation to revenue

DATA

: GUS

DATA: COMPANIES

DATA: COMPANIES

DATA: “2000” RANKING, RZECZPOSPOLITA

*2003: 15.5 billion

**2003: 4.23 billion

DATA: “2000” RANKING, RZECZPOSPOLITA 2012

Andrzej BobińskiSenior Buisness Analyst tel. (+48 22) 436 73 [email protected]

Piotr ArakSenior Analyst for Social Affairs tel. (+48 22) 436 73 [email protected]

Ignacy NiemczyckiSenior Analyst for European Affairs tel. (+48 22) 436 73 [email protected]

Adam CzerniakChief Economisttel. (+48 22) 436 73 [email protected]

Piotr ŻakowieckiAnalyst for Social Affairs tel. (+48 22) 436 73 [email protected]

Marek WąsińskiEuropean Affairs Analyst tel. (+48 22) 436 73 [email protected]

Robert TomaszewskiBuisness Analyst tel. (+48 22) 436 73 [email protected]

Authors

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ten years in the eu: what has changed in poland

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