Warsaw, 25 April, 2024

Polish micro-entrepreneurs – passionate individuals with a sense of mission. They are satisfied with their jobs, although the earnings are not too high. They save money, take short holidays and do not take sick leave. They value independence

 

The Union of Entrepreneurs and Employers presented the results of the original and one of a kind Polish survey entitled “Material situation, private income and assets of Polish entrepreneurs”, portraying the owners of Polish micro-businesses. The main objective of the project was to draw a portrait of the socio-demographic and material situation of small Polish entrepreneurs and to find out their attitudes and opinions on the conditions and prospects for doing business in Poland. The survey was commissioned by the the Union of Entrepreneurs and Employers to the research company Maison & Partners. The survey – as emphasised by experts during the presentation of the report – is unique in the country and shows a profile of the Polish micro-entrepreneur that differs from many prevailing stereotypes.

Passionate individuals with a sense of mission and a need for independence…

For the majority of Polish micro-entrepreneurs, the most frequently mentioned motive for setting up a business was the need for independence (37%) and the desire to pursue one’s passion (31%). The need for independence as a motive for setting up own business dominated among sole proprietors (43%). Among company owners, the more frequently indicated motive for setting up a company was reluctance to work full-time for someone else, as well as economic necessity. In turn, individuals combining a full-time job with running a business were more likely to explain their decision to start a business by coincidence.

Confident in their decision to set up a business

The majority of entrepreneurs (75%) positively assessed their decision to set up a business and would continue to run it if faced with a choice between this and other forms of employment (in this case, there were also more entrepreneurs who were not simultaneously working full-time and were mainly running a business). However, some entrepreneurs, mainly less educated and younger people, would be more willing to work full-time for someone else.

Highly educated

Polish micro-entrepreneurs are mainly educated individuals – there are more people with higher education in this group (69%) than in the population as a whole, and fewer with primary and vocational education (6%). In addition, there are also fewer residents of rural areas among entrepreneurs (19%) than among Poles in general (38%).

Parents of children in state schools and kindergartens

The majority of entrepreneurs have children (68%), 60% of whom have more than one child. The majority of children of small entrepreneurs benefit from public education (88%), attending state nurseries and kindergartens, state schools and universities. Polish entrepreneurs do not spend high amounts on their children – 39% do not spend more than PLN 1,000 per child per month.

No spectacular earnings

Around a third of Polish micro-entrepreneurs, after paying the necessary levies, earn no more than the national average. Only 10% of the respondents declared earnings of more than PLN 15,000 per month, while only 4% – above PLN 30,000. Larger monthly earnings were observed in the case entrepreneurs running larger companies, with higher turnover and number of employees.

No spectacular property or luxurious cars

The majority of Polish micro-entrepreneurs own their own flat or year-round house (86%) and private car (83%). This also means that 14% of respondents do not own their home and 17% do not own a private car. In addition, around a third of them own a house or flat for rent (30%), while fewer own a holiday cottage or apartment (27%).

The dominant car makes owned by the entrepreneurs included Audi (10%, with significantly more cars of this make among this group than among Poles in general), as well as Opel, Skoda and Toyota – makes also popular among Poles who are not entrepreneurs. Only 14% of the respondents declared the value of their car to be over PLN 100,000

But with savings

Most micro-entrepreneurs are frugal. Polish entrepreneurs have more savings than the average Pole. However, it must be stressed that these savings are not always used for private purposes – as many as 47% of micro-entrepreneurs had to finance the operations of their business with private money at some point; quite obviously, this applies more often to sole proprietors than to companies. At the same time, the opposite also happens – small entrepreneurs borrow money from the company for private purposes.

Content with life despite difficulties

Interestingly, despite their material situation that is not much different from from that of Poles in general, it is entrepreneurs who seem more satisfied with their situation (56% of entrepreneurs vs. 36% of Poles in general). Of course, there are also people in financial difficulties among entrepreneurs who do not have enough money for their basic needs. Most of them come from the Łódzkie and Podlaskie provinces, have been in business for less than a year and mainly do physical work.

On average, Polish micro-entrepreneurs show a similar level of satisfaction with their lives as the general Polish population. Interestingly, satisfaction with life is not really related to the type of business run, but to universal demographic characteristics (i.e. similar to other Poles) – entrepreneurs who are better educated, have children and are older tend to be more satisfied with life. This may show that family, education and experience acquired with age constitute assets that translate into a better life.

Expert comments

Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers

The Union of Entrepreneurs and Employers is the only employers’ organisation dealing with the micro- and small-business segment. Poles are an exceptionally entrepreneurial nation and this spirit of entrepreneurship and courage to take matters into one’s own hands is one of the very important factors driving Poland’s development. Keeping the micro and small business segment in good shape ensures the stabilisation of the middle class and the development of small towns. It is often the case that 100 companies employing 10 people each contribute more to the stable development of a region than one company with 1,000 employees. We should take care of their development because, as our survey shows, micro-entrepreneurs are extremely hard-working, thrifty people who do not succumb to conspicuous consumption and who do not want to live off state benefits.

Prof. Dominika Maison, Maison & Partners.

Our survey has shown that the typical Polish micro-entrepreneur is not a rogue who just wants to make as much money as possible. Many micro-entrepreneurs are highly-educated people who set up their own business in order to be independent and pursue their passions. They work more than the average full-time employee, do not take sick leave and do not complain that they are not earning a fortune.

Mariusz Filipek – Plenipotentiary of the Minister for Deregulation and Economic Dialogue, Ministry of Development and Technology

The Union of Entrepreneurs and Employers has prepared a very valuable report for the economy and the business sector. It contains a range of data showing the largest segment of companies in Poland. From the perspective of the Ministry of Development, the key part was information on the development prospects of micro-enterprises. Taking into account the expectations of entrepreneurs, we are preparing a deregulation law to make it easier to do business in Poland.

Ignacy Morawski, Chief Economist, Puls Biznesu

Entrepreneurs play a very important role in the economy, creating companies and jobs, and at the same time providing the economy with flexibility to adapt to technological changes. Small companies tend to be quick to adopt new technologies, trends and products, playing a huge role in the growth of economy and productivity. At the same time, we must take into account that they are less efficient than large organisations. What surprised me most about the report of Union of Entrepreneurs and Employers was that almost half of those surveyed would be willing to change their current business for a full-time job, which shows how hard it is to run a business.

About the survey

The survey was conducted using the CAWI (Computer Assisted Web Interviews) method based on online surveys on the Ariadna survey panel. The persons invited to take part in the survey were representatives of the micro sector (companies with up to nine employees, regardless of employment form) and sole proprietors. The total sample size was N=658 respondents. The survey was conducted from 8-14 February 2024.

Lifestyle and related expenses

• Restaurants. Half of the entrepreneurs do not eat in restaurants at all, eat there rarely (21%) or once every few months (29%). The other half eat in restaurants at least once a month. Only 3% go to restaurants at least once a week.
• Takeaway food delivery. Ordering takeaway food with home delivery is slightly less popular, with 31% of entrepreneurs not using this type of service at all. However, those who regularly order takeaway food (at least once a week) are slightly more numerous than those who frequently eat in restaurants (5%).
• Eating-out expenses. Among those eating in restaurants and ordering takeaway food with home delivery, half spend on these services less than PLN 200 monthly.
• Cultural events. 41% of the entrepreneurs surveyed declared that they participate in cultural events at least once a month. Half of them declared an average expenditure of up to PLN 200 per month for that purpose.
• The dominant pattern of private travel is relatively frequent but short (2-3 days) domestic trips, which 78% of respondents declared in 2023. The most popular international destinations among Polish micro-entrepreneurs were Italy, Spain and Greece.

Assessment of the material situation

• Enough to survive. The vast majority of entrepreneurs surveyed described their material situation as sufficient to survive, but insufficient to afford additional major expenses (42%). 11% described their situation as bad to the point of not having enough to live, of which 8% had to significantly cut back on the spendings to “make ends meet”, while 3% did not have enough for even their immediate needs.
• No changes. Two-thirds (63%) of the micro-entrepreneurs surveyed declared that there had been no change in their material situation over the past year. One in five respondents (20%) declared their material situation got worse, while 16% replied that it improved. Interestingly, the perception of a change in one’s situation compared to the previous year was less negative among entrepreneurs than among Poles in general.
• Who was worse off and why? Deterioration of one’s material situation was declared more frequently by respondents from the Podlaskie, Łódzkie, Dolnośląskie and Kujawsko-Pomorskie provinces, by entrepreneurs performing both physical and white-collar work, not employing people, over 45 years of age. The most important reasons for the deterioration of one’s material situation were: inflation (25%), price increases / higher costs (25%), reduced income / turnover (17%), fewer customers (12%), government policies (8%), employment costs, social security contributions (6%) and the general economic situation in the country and around the world.
• Who was better off and why? The improvement in one’s situation was more often felt by entrepreneurs from the Mazowieckie and Podlaskie provinces and by people with higher (post-secondary and tertiary) education. This was due to: an increase in own or partner’s earnings (35%), an increase in the number of orders/customers (19%), change of own or partner’s job (6%).
• Satisfaction with life. Regardless of the assessment of one’s own material situation, the vast majority of entrepreneurs are satisfied with their lives and that level of satisfaction is not substantially different from that of Poles in general. As with Poles in general, also among entrepreneurs, those who are more satisfied with life tend to be older (over 55), better educated and have children.

Reasons for setting up own company and retrospective assessment of this decision

• Independence, passion and challenges. A very strong motive for starting own business was the desire to be independent and to have a sense of freedom (37% of answers to the open question), as well as reluctance to work full-time for someone else (22%). For 59% of the entrepreneurs surveyed, these were two key factors that had influenced their decision to set up own business. The desire to pursue one’s passions was mentioned as a motivating factor for setting up own business by 31% of the respondents. 16% decided to set up their own business because they had discovered a niche in the market, while 7% wanted to implement an interesting project they had come up with. For 12%, setting up own business was a form of investment or a way to raise money.
• Coercion or coincidence. 19% of the respondents set up their own business due to economic necessity or unemployment, while 11% did so at the suggestion of their former employer. It is interesting to note that 22% of the respondents declared that they had set up their own business as a result of a coincidence. Probably this factor, as well as the sense of compulsion to open own business felt by some contributed to some extent to the fact that a significant proportion of respondents, in retrospect, viewed their decision to start their own business negatively (12%), while a very high proportion (47%) of them would be more willing to work for someone else if they had the choice. What is particularly interesting is that one-third of young and uneducated respondents, working physically in production, would be more willing to work for a multinational corporation, possibly a private company, than to continue running their own businesses. This suggests that the group in question fares worst at running their own business.
• Assessment of the decision to set up own business. In retrospect, 75% of those surveyed assessed their decision to set up own business positively and, given a choice, just over half (53%) would continue to run it. Particularly for those aged 55 and over (70%), with more than 10 years of experience in the market (59%), operating in the service sector (57%), combining manual and white-collar work (59%), not hiring employees (57%), with a university or post-secondary education (56%), continuing running own business remains the best option.

Obstacles and desire to continue running own business – summary

• Labour costs and taxes. Entrepreneurs identified a great deal of barriers to running own business. These were linked to high costs, both due to rising fixed overheads (51%), high taxes (49%) or high labour costs (43%).
• Law and bureaucracy. The second group of barriers was linked to the legal system and bureaucracy. Entrepreneurs frequently mentioned instability of the legal system (29%) and intricacies of the business law (20%), as well as excessive bureaucratic requirements (26%) and EU-imposed restrictions on the activity/development of companies and industries (13%).
• The future of business. When thinking about the coming 12 months, only one-third of the respondents did not consider ending or suspending their business. The majority of the entrepreneurs surveyed (60%) did not think about the issue, while 11% admitted that it was likely that they would terminate or suspend their business. This proportion is significantly higher among entrepreneurs from medium-sized cities (20-99,000 inhabitants), those who have been on the market for 6-10 years and those with primary and basic education (it is worth noting that the latter are the group generally least satisfied with running their own business).
• Reasons for continuing own business. The most frequently mentioned reason for continuing own business was its good condition. However, there were also less optimistic reasons, including lack of other alternatives (6%) or long-term commitments (4%). These answers indicate a certain bitterness about the situation, and may indicate that although running own business may not fulfil the expectations or aspirations of the entrepreneurs, at the moment some of them are bound by their choices and act in a sense ‘out of habit’, struggling to stay in the market.
• Reasons for closing down business. Among the reasons forcing entrepreneurs to close or suspend their business the most frequently mentioned ones included the excessive cost of running a business, the amount of contributions and taxes paid (26%), as well as insufficient revenue to continue operations (13%). Other reasons mentioned included age (6%), lack of orders, customers (6%) and growth opportunities (4%).

 

See more: 11.04.2024 Financial situation, private income, and assets of Polish entrepreneurs

Brussels, 11 April 2024

EU Competitiveness in a Global Arena: Charting the Path Forward – Debate Summary

 

On Wednesday, 10 April 2024, the European Enterprise Alliance and Union of Entrepreneurs and Employers held a working lunch titled “EU Competitiveness in a Global Arena: Charting the Path Forward” in partnership with SME Connect at Sofitel Europe in Brussels. The opening remarks were delivered by Dr Horst Heitz, Chair of the Steering Committee of SME Connect followed by the keynote presentations given by Agata Boutanos, Director of the Representation to the European Union, Union of Entrepreneurs and Employers & Seyide Direk, Policy Analyst at the European Enterprise Alliance. The panel discussion showcased Dr. Laurent Maurin, Head of the Economic Studies Division at the European Investment Bank, followed by Dr. Tudor Petru Fabian, Policy Advisor to Iuliu Winkler MEP; Coordinator of the Working Group on Trade with SME Europe of the EPP, Dr. Daniel Wennick, Policy Director at Orgalim, Harald Past, Head of International Trade & Taxation at EuroCommerce, Michael Jäger, President of the European Taxpayers Association, Ralph Kamphöner, Head of Brussels Office at textil+mode; moderated by Dr. Horst Heitz, Chair of the Steering Committee of SME Connect.

Agata Boutanos, Director of the Representation to the European Union for the Union of Entrepreneurs and Employers, presented the ZPP report on “EU Competitiveness in a Global Perspective.” She emphasized the need for direct regulation over directives to ensure faster and more effective implementation, citing discrepancies in implementation across EU member states. Boutanos highlighted the importance of clarity in regulatory environments, particularly for the tech industry, to foster innovation and the development of future solutions. To enhance competitiveness, Boutanos advocated for equal and free market access for all EU members and the simplification of regulations to promote fair competition. She stressed the need to empower smaller states, including those in Central and Eastern Europe, and called for coherence in regulations across the EU. Boutanos suggested measures such as introducing e-declarations and standardizing procedures to facilitate compliance for small businesses. Moreover, she underscored the significance of strengthening transatlantic ties and cooperation in the tech sector to learn from other regions and develop together. Boutanos emphasized the importance of regulatory alignment and collaboration to ensure that the EU remains competitive and able to keep pace with global technological advancements.

Seyide Direk, Policy Analyst at the European Enterprise Alliance, presented the report titled “Underrepresentation of Central and Eastern European (CEE) Region in EU Institutions.” Direk emphasized the significance of ensuring that the voices of these regions are heard in the institutions. Equal representation is not only a matter of fairness and inclusivity but also essential for effectively tackling the multifaceted challenges encountered by the EU. The report highlighted concerning trends in leadership positions, with Western and Southern Europe dominating appointments while the Central and Eastern European region is marginalized. For example, Poland’s overall representation percentage in EU institutions remains low despite notable appointments. Several factors contribute to this underrepresentation, including political dynamics, population demographics, and economic disparities. In conclusion, Direk provided recommendations for creating a more inclusive environment to ensure equal representation in policymaking within the EU institutions.

“Europe leads in green technology, boosting its economy and future competitiveness. As renewable energy dominates, electricity costs drop, driving manufacturing power. With strong democratic and social policies, Europe offers ample support and subsidies.” — Laurent Maurin, Head of Economic Studies Division, European Investment Bank

Dr. Laurent Maurin, Head of the Economic Studies Division at the European Investment Bank, emphasized the need to take a positive outlook on economic developments, considering the unexpected strength of the recovery despite challenges such as high energy costs and monetary policy tightening. Maurin then shifted to discuss the long-term trends in European growth, expressing concerns about demographic changes, lack of innovation, and the retention of innovators within Europe. He stressed the importance of implementing new policies to address these challenges and ensure Europe can maintain pace with the U.S. economy. Maurin highlighted strategic challenges such as securing European supply chains and enhancing territorial defense capabilities, suggesting these issues should be on the agenda of the new European Commission. Drawing from corporate surveys conducted by the European Investment Bank, Maurin noted that companies in the EU are more concerned about regulatory issues and skills shortages than financial conditions. Despite these challenges, Maurin highlighted Europe’s strengths in green technology and social policies, suggesting they could contribute to future competitiveness. He concluded by emphasizing the importance of raising the potential growth of the European Union through coordinated policy efforts.

“Companies face heightened exposure while implementing regulations, blurring lines between business and politics globally. Increased investment in ongoing geopolitical risk assessments is imperative for both European and American companies.” – Dr. Tudor Petru Fabian, Policy Advisor to Iuliu Winkler MEP; Coordinator of the Working Group on Trade with SME Europe of the EPP.

Dr. Tudor Petru Fabian, Policy Advisor to Iuliu Winkler MEP and Coordinator of the Working Group on Trade with SME Europe of the EPP, discussed EU competitiveness in the global arena, reflecting on insights from a Responsible Business Conference in the U.S. He highlighted companies’ proactive initiatives in sustainability and supply chain mapping, driven by the EU’s value-based policy push. Fabian noted companies’ concerns about regulatory coherence across the EU, U.S., and globally, particularly regarding compliance and the pace of regulatory changes. He emphasized the impact of China-related regulations on global supply chains and the need for greater investment in geopolitical risk assessments. Fabian stressed the interdependence of business and politics, calling for increased cooperation between public and private sectors. He highlighted trust disparities between government and companies and advocated for strategic alignment and cumulative impact assessments to ensure the feasibility of regulatory frameworks. In navigating the green and digital transitions, Fabian underscored the importance of aligning legal and statistical frameworks with the practical needs of businesses. He cautioned against both excessive speed and insufficient assessment of regulatory impacts, emphasizing the need for a balanced approach to policymaking.

Dr. Daniel Wennick, Policy Director at Orgalim, emphasized the competitiveness of the EU, highlighting challenges in competition against the US and China. He pointed out the impact of factors such as regulations, innovation, and high energy prices on competitiveness. Wennick underscored the need for a market-driven framework to achieve climate goals, stable policies, and equitable taxation. He called for new legislation to ensure market conformity assessment processes and addressed geopolitical challenges regarding international and European standards. Wennick also stressed the importance of reducing trade barriers and strengthening partnerships with countries like the US, Switzerland, Australia, and the UK. In the long term, he advocated for funding support for sectors and enhancing public-private partnerships.

Ralf Kampöner, Head of the Brussels office at the Confederation of the German Textile and Fashion Industry, highlighted the complexity of the textile sector and its role in innovation. He emphasized the sector’s reliance on small to medium-sized companies and the need for a conducive policy environment for competitiveness. Kampöner discussed the importance of global value chains and cautioned against protectionist measures, advocating for collaboration instead. He underscored the challenges of navigating international trade agreements and the risks of regulatory complexity, particularly for small businesses. Kampöner stressed the importance of considering the entrepreneurial perspective in policymaking to avoid unintended consequences and fragmentation of the internal market. Kampöner urged policymakers to prioritize the creation of a level playing field across the EU to avoid further fragmentation. He emphasized the need for coordinated efforts to strengthen Europe’s economic position globally.

Harald Past, Head of International Trade & Taxation, at EuroCommerce, highlighted the challenges facing the retail and hotel sector in Europe, particularly emphasizing the digital, green, and skills transformations. He stressed the need for significant investment, estimating up to 600 billion euros by 2030, to address these challenges effectively. Past also pointed out the neglect of global competitiveness in the EU’s agenda, citing the disproportionate impact of certain measures on SMEs. He called for a more workable framework for small companies to succeed globally, emphasizing the importance of trade relations and urging the EU to take a more proactive approach in tackling global challenges like the green transition. Additionally, Past expressed concerns about potential barriers for smaller companies, particularly in customs reforms, and advocated for measures that would facilitate their ability to compete on the global stage.

Michael Jäger, President of the European Taxpayers, highlighted concerns regarding EU competitiveness, particularly in the context of the green transition. He expressed reservations about the centralized approach to addressing challenges and emphasized the need for market-driven solutions and innovation. Jäger called for deeper engagement with entrepreneurs and stakeholders to ensure sustainable growth and advocated for a stronger voice for entrepreneurs in policymaking. He stressed the importance of effective communication and dialogue to address collective challenges and promote EU competitiveness.

Pauline Weil, Economist, Bruegel presented research into the macroeconomic situation two years into the Russian aggression against Ukraine. She emphasized the significant role of the UK and Russia in the globally traded food supply, highlighting challenges in both production and logistics arising from the aggression. Weil expressed global concern over historically high food prices, noting the potential for heightened food insecurity, reminiscent of events like the Arab Spring. However, she mentioned that prices have eased since April 2022 due to strong harvests, declining shipping costs, and more affordable energy and fertilizer prices. Weil discussed the impact felt at local levels in the UK, EU, and Ukraine, particularly the disruptions in grain exports from Ukraine through the Black Sea. She highlighted the EU’s financial support package and measures to address import restrictions, emphasizing the enduring local impacts and the need to address competition distortions amid trade liberalization in the food sector.

Brussels, 14 February 2024

European Food Security & Impact of Ukraine – Lunch Debate Summary

 

On Tuesday, 13 February 2024, the Union of Entrepreneurs and Employers (ZPP) held a working lunch titled “European Food Security and Impact of Ukraine” in partnership with SME Europe of the European People’s Party (EPP) at the European Parliament. ZPP partnered also with the European Enterprise Alliance.  The opening remarks were delivered by Ivan Štefanec, MEP and President of SME Europe followed by the keynote address given by Janusz Wojciechowski, the European Commissioner for Agriculture. Taras Kachka, Deputy Minister of the Economy of Ukraine, and Trade Representative of Ukraine provided an intervention about the importance of the topic to set up the floor for the panel. The panel discussion featured Marcin Nowacki, Vice President of Union of Entrepreneurs and Employers, along with Michaela Šojdrová, MEP, Nazar Bobitski, Director of the EU office, Ukrainian Agribusiness Club Association (UCAB) and Pauline Weil, Economist at Bruegel; moderated by Dr. Horst Heitz, Executive Director of SME Europe.

Ivan Stefanec, MEP, IMCO, ITRE Committees, President of SME Europe, In his welcome speech, as the host of the event, extended his gratitude to the distinguished guests, including Commissioner Janusz Wojciechowski for their valuable presence. He emphasized the critical importance of European food security, particularly amidst the challenges posed by Russia’s unjust military aggression against Ukraine as well as the significance of the EU’s Common Agricultural Policy (CAP) in ensuring food availability and supporting European farmers. Regarding Ukraine, Stefanec highlighted its pivotal role as the “breadbasket of Europe” and a major supplier of essential commodities to the EU. Despite disruptions caused by Russia’s invasion, Ukraine remains a reliable partner in ensuring global food security. The EU’s adoption of trade liberalization measures, including Autonomous Trade Measures (ATMs), underscores its commitment to supporting Ukraine in this challenging time. Crucially, Stefanec acknowledged the concerns raised by European farmers regarding the impact of unlimited imports from Ukraine, which have led to a sharp decline in the value of cereals production in the EU. MEPs’ calls for a comprehensive EU food security plan and the importance of the Strategic Dialogue on the Future of EU Agriculture in shaping the EU’s farming and food system carry a strategic development. Policymakers need to ensure that they implement policies to strengthen European food security while addressing the challenges faced by the agricultural sector. 

“Europe is safe; there is no need for future concerns regarding food security as the EU, the biggest food exporter in the world, boasts surplus agricultural products.’’ — Janusz Wojciechowski, European Commissioner for Agriculture.

Janusz Wojciechowski, European Commissioner for Agriculture, addressed several critical points regarding the EU’s agricultural landscape and its relations with Ukraine, highlighting the significant surplus of agricultural products within the EU, boasting a surplus of over 20 million tonnes, and emphasizing the region’s robust food security measures. Regarding Ukraine, Wojciechowski noted a substantial increase in Ukraine’s exports to the EU post-2020, reaching a value of over €12 billion. Despite this increase, he expressed concerns about the negative balance of trade between the EU and Ukraine, which stood at approximately €10 billion in recent years, underscoring the challenges posed by Russia’s influence in pushing Ukraine out of certain markets and stressing the need to support Ukraine’s transport infrastructure, particularly focusing on Baltic ports and Germany. Additionally, he discussed the need for harmonized standards between Ukraine and other trading partners like Morocco to ensure fair competition for EU farmers, addressing legislative procedures affecting agricultural markets. Emphasizing the importance of European cooperation, Wojciechowski also highlighted the need to diversify export markets beyond neighbouring countries, shedding light on the complex dynamics of EU-Ukraine agricultural relations and the challenges ahead in ensuring fair trade practices and food security.

Taras Kachka, Deputy Minister of Economy of Ukraine – Trade Representative of Ukraine, discussed various challenges impacting Ukraine’s agriculture, including security concerns and disruptions in global trade patterns. He highlighted logistical issues faced by traders, particularly regarding port blockades, which led to market turbulence and increased reliance on Romanian ports. Kachka emphasized the importance of security support from the EU and emphasized positive relations with Romania. He also noted the evolving dynamics in the Black Sea region and the ongoing efforts to align with EU standards. There is a necessity of support in adapting to EU policies and caution against speculative practices. Furthermore, he underscored the significance of strategic partnerships for ensuring food security and maintaining a balanced trade approach, especially amidst invitations to join the EU. Overall, Kachka shed light on the intricate challenges within Ukraine’s agricultural sector, advocating for informed decision-making to sustainably navigate trade dynamics and ensure long-term stability.

“Failing to address the economic and social challenges jeopardizes Ukraine’s integration momentum and risks losing crucial social support. Monitoring and mediating activities along the Ukraine border, especially regarding agriculture and carriers, are vital for maintaining stability.” — Marcin Nowacki, Vice President of Union of Entrepreneurs and Employers.

Marcin Nowacki, Vice President of Union of Entrepreneurs and Employers, highlighted crucial aspects of the EU’s policy toward Ukraine. He emphasized the need for transparent and predictable trade policies between Ukraine and the EU, urging against sudden trade blockades and recommending revisions to the embargo on Ukrainian agri-food products. In addressing EU food security, he advocated for a shift away from restrictive climate policies, stricter mechanisms to combat animal diseases, and mandatory compliance with EU production standards for imported food. Nowacki also stressed the necessity of a careful review of EU trade agreements and support for organized forms of farming to bolster small farms’ market position. Additionally, he highlighted the importance of developing transport infrastructure on the eastern flank of the EU, emphasizing increased state border capacities and investment in warehousing, storage, rail, and port infrastructure in Poland to facilitate goods redistribution from Ukraine, backed by EU financial support.

Michaela Šojdrová, MEP, CULT, AGRI Committees, echoed the urgent concerns of farmers grappling with the repercussions of climate change and the European Green Deal’s stringent regulations on fertilizer usage. She deliberated extensively on Ukraine’s internal agricultural policies, particularly its ongoing accreditation process, highlighting the need for swift interventions to mitigate unfair competition and uphold EU standards. Notably, there was also an emphasis on the imperative of proactive measures to safeguard the livelihoods of farmers amidst the influx of imports from Ukraine. A collective call for a thorough examination of the Commission’s proposed strategies to address these challenges effectively is a necessity. Moreover, It is significant to engage in constructive dialogues to foster collaboration and ensure equitable conditions for all farmers. The exchange of insights and perspectives paved the way for innovative solutions and actionable steps to protect the interests of European agriculture while promoting sustainable practices. As the discussions progressed, Mep Šojdrová articulated the expectations from the Commission, urging it to take decisive actions that align with the best interests of farmers and uphold the integrity of the agricultural sector. 

Nazar Bobitski, Director of the EU office, of the Ukrainian Agribusiness Club​ Association (UCAB) presented significant points regarding Ukraine’s macroeconomic outlook for 2024. He highlighted the country’s grim economic situation, citing a record-high NBU currency reserves at the beginning of the year but a concerning balance of payments deficit reaching the worst levels since the 2008 financial crisis. He also raised concerns about the 2024 national budget deficit and the potential consequences of inadequate financial support, including significant currency devaluation and economic shocks. Moreover, Bobitski underscored the importance of preserving access for Ukrainian agri-food products to the EU market, highlighting their critical role in Ukraine’s trade balance and economic stability. He also discussed the challenges posed by Russian aggression, including production losses and environmental damage. Looking ahead, a need for Ukraine to align with EU agricultural policies while ensuring a level playing field for Ukrainian agroproducers and promoting sustainability principles.

Pauline Weil, Economist, Bruegel, presented research into the macroeconomic situation two years into the Russian aggression against Ukraine. She emphasized the significant role of the UK and Russia in the globally traded food supply, highlighting challenges in both production and logistics arising from the aggression. Weil expressed global concern over historically high food prices, noting the potential for heightened food insecurity, reminiscent of events like the Arab Spring. However, she mentioned that prices have eased since April 2022 due to strong harvests, declining shipping costs, and more affordable energy and fertilizer prices. Weil discussed the impact felt at local levels in the UK, EU, and Ukraine, particularly the disruptions in grain exports from Ukraine through the Black Sea. She highlighted the EU’s financial support package and measures to address import restrictions, emphasizing the enduring local impacts and the need to address competition distortions amid trade liberalization in the food sector.