Warsaw, 23^rd August 2018

The development of innovative enterprises possible thanks to the implementation of the 5G network

Polish economy can benefit greatly from the development of wireless communication and 5G technology. The revolution in this field will be possible thanks to the harmonisation of power density limits in Poland with the standards accepted as safe by the World Health Organization and the International Commission on Non-Ionizing Radiation Protection (ICNIRP), as well as thanks to th execution of new investments and infrastructure modernisation.

On August 22^nd, the daily paper “Gazeta Polska Codziennie” organised a debate to which representatives of government administration and business environment were invited. They talked about the need to create an ecosystem necessary for technological development in Poland, as well as what should be done to make telecommunications investments take place faster while at the same time, state control is maintained over them.

The guests who discussed the role of modern technologies in the execution of “Plan Morawieckiego” (an economic framework created by Prime Minister Mateusz Morawiecki) were Jadwiga Emilewicz – Minister of Entrepreneurship and Technology, Jerzy Kwieciński – Minister of Investment and Development, Marek Zagórski – Minister of Digital Affairs, Cezary Kaźmierczak – President of the Union of Entrepreneurs and Employers, and Mirosław Godlewski of Boston Consulting Group Poland.

Mirosław Godlewski, Senior Advisor at BCG Poland, pointed out that one of the key barriers affecting the technological revolution, understood as the development of the 5G network, are currently the lowest and most restrictive in Europe PDLs (power density limits). The expert pointed to the constantly growing demand for data transmission. In his opinion, the surplus of demand over supply in this respect will amount to over 30% in two years.

“Without raising and harmonising the power density limits in Poland to the standards in force in other European Union countries, we will not be able to develop the 5G network,” said Mirosław Godlewski.

According to the BCG Report “The impact of PDL (Power Density Limits) on wireless connectivity: is there a threat of delays in 5G development in Poland?”, already today, restrictive power density limits have a negative impact on the mobile Internet service in Poland. None of the largest European countries, such as Germany, the United Kingdom or France, imposes such stringent restrictions on their mobile Internet sector.

Do we want to benefit from transformation?

“4G technology led to digitisation. 5G can lead to smartisation, both in the public and private sectors,” claims the Minister of Entrepreneurship and Technology Jadwiga Emilewicz. “Many analyses indicate that the implementation of new communication technologies, such as 5G, will significantly translate into dynamic economic development of a given country and, consequently, will positively affect the situation on the labour market.”

The Minister pointed out that the creation of a basic infrastructure for the development of the 5G network is crucial for the development of smart cities, telemedicine, transportation and other sectors, such as the financial services sector. “By 2020, we should have several urban centres Poland that stimulate the development of 5G networks,” she added.

“5G technology is one of the most ground-breaking that have appeared in recent years. We see many branches of the economy in which its use will be crucial: transportation, telemedicine, industry,” said Jerzy Kwieciński, head of the Ministry of Investment and Development. “Europe is lagging behind the rest of the world, especially Asia and the United States, in term of 5G networks’ development. One of the developmental barriers is the legal environment. The already mentioned most restrictive power density limits are another. Baltic countries also have a bandwidth problem. Even half of Poland is covered by ‘interferences from the East’.”

The Minister stressed that the Strategy for Responsible Development assumes financing for the development of the 5G network and this is one of the high priority tasks. “We have to systematically introduce changes in the legal environment, but also have to make the requirements related to the investment process more business-friendly, while taking into account social conditions,” he summarised his opinion.

The Minister of Digital Affairs Marek Zagórski, who also took part in the debate, discussed the importance of modern technology which translates into the improvement of people’s quality of life, as well as the infrastructure necessary for its development.

“5G technology consists of several elements: base stations, investments by telecommunications operators, construction of a fibre-optic network. Currently, at the Ministry we are working on a IT system that will support the expansion of a 5G network. Another issue is related to the development of the implementation program in terms of simplifying and shortening the investment process. It is also necessary to reduce local fees introduced by local governments, which make it difficult, for example, to build fibre-optic networks,” said Marek Zagórski.

Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers, pointed out that Europe is losing to Asia and America through numerous and complicated regulations: “Unless we get rid of the shackles of bureaucracy, not only in this field but also in others, our domestic business will be far behind our competitors from abroad. I appeal to the government for prudence in implementing new regulations.”

What needs to be done first in order for the 5G network to be implemented in Poland?

“Good infrastructure, broadband network covering, if possible, the entire territory of Poland, shortening the construction and modernisation period for broadband stations, full implementation of the European Electronic Communication Code and implementation of the pilot program for 5G network development are challenges that we have to face,” summarised Minister Jadwiga Emilewicz.

Minister Jerzy Kwieciński assured that when it comes to economic experts, the conviction about the importance of this technology seems to be a fact. He also mentioned the need to create a friendly legal environment for the implementation of investments in this area and to convince the public that 5G technology is really safe.

“Finance is the subject concerning the development of 5G networks most often addressed at the Ministry of Investment and Development. It seems that this will not be a big problem – a good legal framework will translate into the fact that business will want to invest in this type of undertakings. 5G technology will be an additional drive for the development of the entire economy,” assured Minister Kwieciński.

Marek Zagórski from the Ministry of Digital Affairs pointed out that quick administrative decisions will have a significant impact on the construction of the network. He also said that the changes would primarily benefit business. In his opinion, it is of key importance to educate this group about the benefits of developing a 5G network.

Cezary Kaźmierczak representing the Union of Entrepreneurs and Employers highlighted the fact that the most important aspects of implementing such changes are political leadership, courage, and determination.


Photo: ZPP

22^nd August 2018

Employers’ organisations and NGOs that support foreigners living in Poland jointly appeal to Elżbieta Rafalska (Minister of Labour and Social Policy) and Jadwiga Emilewicz (Minister of Entrepreneurship and Technology) to introduce systemic changes that will improve the process of legalising foreigners’ stay and employment in Poland. Not assigning employees to specific employers, informatisation of the system of legalising the work of foreigners, changing the competences of Chief Labour Inspectorate PIP are but a few of their postulates.

Employers’ associations and social organisations speak with one voice regarding the amendments to the Act on the Labour Market proposed by the Ministry of Labour and Social Policy. The amendment concerns the employment of foreigners in Poland.

“Work on a new regulation is a good moment to re-engineer the assumptions of the employment process for foreigners in Poland, and not only to introduce minor adjustments to existing solutions”, we read in a letter signed by professor Witold Klaus, President of the Association for Legal Intervention.

The letter to the ministry was signed by the following organisations: Business Centre Club, Polish Chamber of Commerce, Union of Entrepreneurs and Employers, Centre for Migration Research Foundation, Polish Migration Forum Foundation, Helsinki Foundation for Human Rights, Bread and Salt Initiative, Institute of Public Affairs, Homo Faber, Association for Legal Intervention, Association for Multicultural Society Integration. What do they demand?

1. More freedom for employees

The current regulations stiffen the labour market and lead to strengthening the already privileged position of the employer towards foreigners who find it harder to assert their rights in case of being abused or falling victim to an abuse of rights. This is due to the fact that the legalisation of work is closely related to the legalisation of stay, and the loss of employment leads in principle to the loss of the legality to stay.

A new form of a work permit could therefore be issued to a foreigner for a specified period of time, but to provide services to any employer. In the minimum variant, it would be possible to introduce restrictions on working only in a specific profession or only in a specific area (e.g. one voivodship).

2. Legal employment upon submission of documents

It would also be appropriate to introduce a principle that the work of a foreigner is considered legal from the moment of submitting a formally valid application, containing all the required documents regarding the legalisation of work. In that case, delays resulting from a prolonged wait for a document to be issued by the appropriate office would not unnecessarily burden enterprises or foreign employees. Thus, obtaining a work permit or a declaration of entrusting work to a foreigner would only confirm the legality of their employment.

3. Permission to work as a “reward” for legal work

Another important systemic change would be to show greater confidence in foreigners who have so far acted legally, i.e. they worked legally. After a certain period (e.g. 3 years) of such work, foreigners would receive a general permit for a legal stay and work in Poland for a period of, for instance, 5 years.

4. Permission-free employment for graduates

All high school or university alumni who completed their education in Poland should receive the opportunity to work without a work permit as well as obtain a residence permit for this purpose for 3 years, and then having documented employment in the above-mentioned period, a permanent residence permit. The challenges facing the Polish labour market also require extending rather than narrowing the current regulations.

5. Automation and informatisation of the foreigners’ employment legalising system

Procedures related to employing foreigners should take place online without the need for employers to appear in offices. All submitted documents could be confirmed by an electronic signature (or analogous systems, e.g. a trusted profile on the e-PUAP platform). This way, employers would fill out an online application, attach scans of relevant documents to it and could generate a relevant permit / statement after the verification of the application by a clerk appriximately 2-3 days after the application submission date.

6. Operational changes of the Chief Labour Inspectorate’s prerogatives to transform it into an institution offering only help and assistance

The Chief Labour Inspectorate should be deprived of investigative functions, checking the legality of foreigners’ employment and punishing them for working without proper permits. The Inspectorate – as it takes place in case of Polish employees – should be an institution only providing support and assistance that can be contacted without fear of negative consequences associated with this action.

The full contents of the letter with comments on the proposed changes can be found here.

Recommendations on improving the process of legalisation both employment and stay of foreigners in Poland can also be found in the report of the Association for Legal Intervention and the Konrad Adenauer Foundation titled “Employers and employment of foreigners.” The publication is available on the Association’s website www.interwencjaprawna.pl in the Publications tab.

Warsaw, August 13^th, 2018

 

The Russian embargo does not work –we have alternative consumer markets.
Food exports are on the rise

 

The Polish trade balance after the introduction of the Russian embargo is systematically improving. The structure of exports has not changed; however, the volume of food products exported has increased. Poles were, therefore, successful in effectively finding alternative consumer markets.

The basic conclusion from the document published by the Union of Entrepreneurs and Employers ZPP is as follows: Polish exporters are doing very well and in spite of the embargo, they are gradually increasing the volume of exports, seeking new markets. What is important, the export of food products was not particularly affected by the embargo. It seems, however, that the main victims of the whole situation are primarily the Russians.

“Immediately after the embargo was introduced, we were being scared how terrible the consequences would be for Polish producers, in particular farmers were to await a catastrophe,” says ZPP President Cezary Kaźmierczak. “Meanwhile, it turned out that Russia is not an indispensable market for our exporters, and the embargo hits the Russians themselves, who now have to pay much more for food than before 2014.”

The fact that the embargo had no significant negative impact on the volume of Polish exports is best evidenced by hard data – in 2013, we exported goods worth approximately PLN 648 billion. In 2016, two years after the embargo was introduced, the value of exports increased to PLN 803 billion, that is circa 32% more compared to 2013. At the same time, the structure of exports did not significantly change, which means that the volume of sales abroad of Polish food products also increased.

“This clearly shows that the embargo did not lead to the collapse of Polish food exports. It also turns out that Russia is not at all a key market for Polish exporters, already in 2013 we were selling more to our small neighbour – the Czech Republic – than we were to Russia,” says Jakub Bińkowski, Secretary of the Department of Law and Legislation of the Union of Entrepreneurs and Employers ZPP.

Despite the fact that Poles managed to cope with the constraint introduced in 2014, or the fact that Russians complain about rising food prices, Vladimir Putin claims that he will keep the embargo in force for as long as possible. It seems that there are no rational premises for this – even the condition of the Russian food sector, which could theoretically be improved if the embargo were abolished, does not justify maintaining the embargo because of its increased share in satisfying internal food demand. A significant improvement can only be noted in the poultry and pork sector.

Finally, it seems that Russia, due to the instability of its economic situation, largely dependent on prices on the raw materials market, as well as the relative poverty of the majority of the population (especially in the oblasts far from Moscow), is not a very attractive market, therefore possible maintaining of the embargo should not pose any serious threat to Polish producers. Henceforth, the argument that the embargo was an exceptionally severe repercussion resulting from political and economic sanctions imposed by Russia, that should be eased – according to some – must be regarded as false.

***

Business Papers is a new format of documents prepared by the Union of Entrepreneurs and Employers ZPP – it consists in a synthetic presentation of the most important facts and data concerning the issue discussed, in a graphically attractive form. Thus, the readers can quickly learn key figures, statistics, and news on the subject of their interest.

13^th August 2018 Russian embargo vs. Polish exports (in Polish) 


fot. Tim Mossholder / Unsplash

August 2^nd. 2018

 

A new employers’ union hass formed – the Union of Agricultural Entrepreneurs. On August 1^st this year in Biała Podlaska, several dozen large Polish agricultural entrepreneurs met and elected their Organisational Committee comprising of 12 members. The Committee will deal with the Union’s registration. During the meeting, apart from organisational issues, legal problems in the field of development of agricultural enterprises and agricultural production, issues of international competition and changes taking place in the Polish countryside were discussed.

This is a fragment of a speech by Cezary Kaźmierczak, the President of the Union of Entrepreneurs and Employers at the founders’ meeting:

“There are great challenges ahead of Polish agriculture. We are dealing with a series of events and processes for which we must prepare to adequately respond. The most important challenges facing Polish agriculture are problems with farm succession and growing competition from Ukraine. We are just at the threshold of these two phenomena. They will intensify and unless we react properly, they will threaten Polish agriculture.

Poland owes a lot to small family farms. During the communist period, these were oases of tradition, work culture, entrepreneurship and common sense. To a large extent thanks to those values that survived in the countryside, it was possible for Polish entrepreneurship to explode after the collapse of communism. The time of these farms as a model of farming is slowly passing. Both due to lack of succession and powerful competition.

This competition comes mainly from Ukraine, where giant agricultural enterprises (“agrozavods”) are created, covering up to tens of thousands of hectares, based on oligarchic money, western technologies, cheap labour and excellent soil. Small Polish farms are not and will not be able to compete with the Ukrainian “agrozavods”.

I remind you that the way of Ukrainian agricultural products to the European Union is open.

However, we have not yet lost. We only need to create competitive Polish “agrozavods”, that is Polish agricultural enterprises, as a response to Ukrainian ”agrozavods”. We have many competitive advantages, including broader experience, greater work culture, a better understanding of sales markets, we are more entrepreneurial. All that is needed is a political decision to change the model of Polish agriculture – we must leave the preference for small family farms that are in decline and invest in Polish agricultural entrepreneurs.

To achieve this, we need a whole system of support, from a favourable legal system for a new order in the countryside, to loans guaranteed by the government for the development of agricultural enterprises.

The second area where we can compete is unprocessed and processed high-quality and highest-quality food. We have a decisive advantage here and we should take action to strengthen it.

I repeat – without strong support for the production of high-quality food or without a systemic support for shaping a new order in the countryside, based on efficient, private agricultural enterprises – Polish agriculture may not survive.” – in these words, Cezary Kaźmierczak ended his speech.