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    Poland at the forefront of digital transformation in the EU. Priorities for the Polish presidency of the Council of the European Union

    Posted on by Malgosia

    Warsaw, 1 August 2024

    Poland at the forefront of digital transformation in the EU. Priorities for the Polish presidency of the Council of the European Union

     

    • In view of the great geopolitical uncertainty and the upcoming presidency of the Council of the European Union in 2025, the Polish government faces the important task of building new pillars to strengthen the competitiveness of the European economy.
    • The European economic model is made up of many factors, but it is the new technology sector that is becoming one of the most important drivers of economic growth. In 2021 alone, the ICT sector accounted for 5.5 per cent of EU GDP.
    • Unfortunately, our potential remains unrealised in this area. In the list of the world’s 20 largest technology companies, there is not a single one headquartered in Europe, and only 11 per cent of global unicorns come from the Old Continent. By not creating our own innovations, we are also becoming increasingly dependent on external suppliers of new technologies.
    • Additionally, Europe has become a champion of digital regulation in recent years. The EU’s regulatory requirements for the technology sector are among the most extensive in the world. Although they affect different areas or categories of players, they occur extremely frequently, leading to an increasing level of complexity in the regulation of the digital market and raising the entry threshold for new players.
    • Europe still has a chance to achieve a leadership position, but this will only be possible through an appropriate regulatory environment, investment in local technology implementation, support for digital education, closer links between industry and academia in research and development, and an increased role for transatlantic cooperation.
    • Artificial intelligence, the Internet of Things, the cloud or blockchain often referred to as future technologies have the potential to provide a breakthrough in productivity in Europe. Therefore, the Polish presidency should focus on supporting the competitiveness of the new technology sector and creating an appropriate regulatory environment to unlock the potential of digital innovation.
    • The Union of Entrepreneurs and Employers has prepared a list of digital priority areas that should set the tone for the upcoming presidency.

     

    Regulation monitoring

    The European Union’s regulatory requirements for the technology sector are among the most extensive in the world. Digital Services Act, Data Act, Digital Markets Act, GDPR, AI Act, ePrivacy, Terrorist Content Online regulation, Data Governance Act, NIS2 – the EU adopts thousands of regulations, directives and decisions every year, many of which hinder economic development. In 2023, for example, a total of 2228 legal instruments were adopted or amended. In 2022, the figure was 2445, and in 2021 it was 2380. While some of these have had a positive impact on digital sector regulation trends, global leaders in new technologies do not always follow Europe’s lead. China and the United States, with their flexible regulatory frameworks, better access to databases and therefore easier access to capital, are developing the artificial intelligence ecosystem, which is the most important technology of the future, faster and more efficiently. There are now three times as many AI creative hubs in the US as there are in Europe, and China leads the world in terms of the number of publications in AI journals, conferences and repositories, publishing around 135,000 AI articles in 2021.

    Europe, on the other hand, introduced the AI Act and, before that, GDPR, which significantly limits the possibilities of developing artificial intelligence in Europe. AI is heavily dependent on the quality of Big Data analytics, and such analytics requires access to relevant data. This data is in short supply in Europe – according to a report by Polityka Insight, in 2017 only 4 per cent of data available globally was stored within the EU. This number is growing slowly, and the Data Protection Regulation 2016/679 (GDPR) is a factor that limits it significantly. While the GDPR certainly provides extensive protection for the privacy rights of individuals, it undoubtedly reduces Europe’s competitiveness when it comes to researching and implementing solutions based on big data processing, such as artificial intelligence. The main criticism of the GDPR stems from the restrictions on access to data, which is crucial for artificial intelligence developers in the EU to train machine learning models. The Regulation introduces stringent requirements for the collection, storage and use of personal data, which complicates the use of such data in the development of advanced technologies without breaching the regulations.

    Another regulation, already mentioned above, is the AI Act Regulation, which in the Polish translation version has 458 pages. The new multi-page regulation effectively gives officials the unprecedented privilege of determining the direction of this technology before the market and inventors have even demonstrated their capabilities. Although Thierry Breton, EU Commissioner for the Internal Market and Services, insists that not only will the AI Act not delay the development of new technologies in the EU, but it will actually be a starting point for ‘European start-ups and researchers to become leaders in the global AI race’ the mood among entrepreneurs contradicts this. Companies taking steps to introduce artificial intelligence surveyed by EY Poland indicated that legal barriers ranked as the fifth reason delaying the implementation of AI in their organisation. For entrepreneurs, the AI Act means entirely new requirements and further barriers to overcome before bringing a product or system to market.

    Therefore, instead of initiating further regulations, the Polish presidency should focus on creating innovative regulatory methods. It is certainly necessary to limit the introduction of successive regulations which, instead of stimulating innovation, block entrepreneurs from the start with the need for constant updates and adjustment to requirements that are repeated in many acts. The more frequent introduction of regulatory sandboxes, which allow experiments to take place in an environment subject to regulatory control and oversight, should be considered.

    An equally important task will be to assess the impact of the acts adopted during the last term of the European Commission, whose ambition was to regulate virtually every dimension of the new technology sector. In 2025, we will be able to formulate the first proposals for the implementation of the new Internet Constitution, i.e. the DSA (Digital Service Act) and the DMA (Digital Market Act), and this should be our priority.

    Development of cybersecurity

    Confidence in new technologies is closely linked to the level of cybersecurity. Since the outbreak of the war in Ukraine, EU countries have become a target for cybercriminals from Russia, and as Deputy Prime Minister and Minister of Digitalisation Krzysztof Gawkowski says ‘I don’t know if we are in a state of cyber war, but we can say we have a cyber cold war’. Following the failure of the cyber war against Ukraine, Russia is intensifying attacks on its allies, according to a report by French technology company Thales. At the outset of the conflict itself, the majority of incidents were primarily related to Ukraine (50.4 per cent compared to 28.6 per cent in Q3 2022), but over the past six months there has been a sharp increase in conflict-related incidents in European Union countries (9.8 per cent compared to 46.5 per cent of global attacks). This summer, there were almost as many conflict-related incidents in EU countries as in Ukraine, and by the first quarter of 2023, the overwhelming majority of incidents, 80.9 per cent, had already occurred within the European Union. Public administration, the financial sector, the transport sector, telecommunications and the energy sector are most frequently attacked. Although the conflict has previously been relatively low-impact, the European healthcare sector, governments, industry, IT services and the aviation sector are increasingly being targeted by attacks designed to put pressure on Western societies. According to Microsoft research, in the first six weeks of 2023, Russia initiated cyberattacks in at least 17 European countries and these were mainly targeting government institutions for espionage purposes.

    As can be seen, a damaging cyber campaign is currently targeting democratic institutions, government entities and critical infrastructure providers across the European Union and beyond. This is a continuing pattern of irresponsible Russian behaviour in cyberspace. As part of Russia’s information warfare strategy, pro-Russian hackers not only spread disinformation, but also launch attacks on servers and other elements of the IT infrastructure. Their actions aim to disrupt both public and private institutions.

    It is encouraging to see that the European Union is making cybersecurity a priority, especially in the context of a globalised digital world. In response to these challenges, the EU has introduced a number of legal requirements to protect personal data and digital infrastructure and prevent cyberattacks. The CER Directive (2022) replaced previous legislation, increasing digital protection obligations for operators and digital service providers and strengthening cooperation between Member States. The NIS2 Directive continues this work by expanding the scope of regulations and introducing stricter safety requirements. It aims to better protect the EU’s digital infrastructure and make it more resilient to cyberthreats. The NIS2 Directive applies to medium and large companies and institutions in a wide range of sectors, including energy, transport, banking, financial market infrastructure, health, drinking water, waste water, digital infrastructure, public administration, space and food, as well as the companies in their supply chains.

    Subsequent directives, such as the Directive on Attacks against Information Systems and the Civil Protection Directive, focus on combating cybercrime and crisis management in the context of attacks against critical infrastructure. This legislation aims to increase the security of citizens, companies and institutions in the EU.

    In the area of cybersecurity, it will be essential to take measures to ensure that any vulnerabilities in the system are eliminated. To this end, the activities of the Polish presidency of the EU Council should be focused on cooperation with industry, which plays a key role in promoting cybersecurity and ensuring secure infrastructure. Representatives of companies developing security systems should be actively involved in the development and implementation of regulations and strategies to combat cyberthreats. Leaders from the EU, governments and industry can work together to strengthen cybersecurity by sharing information, best practices and developing common strategies for secure infrastructure.

    Another priority action is to develop international partnerships with democratic countries and in the spirit of transatlantic and NATO cooperation. Particularly on the side of the NATO alliance and the European Union Member States, there is a growing need to further develop capabilities for joint offensive operations in cyberspace. Cybersecurity is a new area of activity for the North Atlantic Alliance to which NATO is attaching increasing importance. The example of the intensification of disinformation campaigns against the West in connection with Russia’s attack on Ukraine proves that NATO and the EU should devote even more attention to the issue of hybrid threats, and that the Polish presidency, by introducing new initiatives aimed at expanding cooperation, can effectively strengthen the alliance.

    Strengthening the role of the Digital Single Market

    According to experts, by 2025, 24.3 per cent of global economic activity will take place in the digital sector and the value of the digital economy will grow to USD 23 trillion. The dynamic development of new technologies and, consequently, of e-commerce and new business models, has put the unification of the digital dimension of the European economy at the top of the European Union’s agenda. As a result, 22 years after the official launch of the single market, the Digital Single Market Strategy for Europe was announced in May 2015.

    The Digital Single Market Strategy enables better access to online goods and services for consumers and businesses across Europe, by removing barriers to cross-border online activity, creating the right conditions for the development of digital networks and services and maximising the economic growth generated by Europe’s digital economy, or at least that was its intention. Looking through a purely economic lens, the potential of the Digital Single Market is certainly not yet fully realised.

    Although we have succeeded in simplification with VAT or the abolition of roaming charges within the EU, the idea of a Digital Single Market is being hit by barriers to cross-border trade, digital over-regulation and a lack of a strong vision for the EU economy. According to the latest data, while nearly 20 per cent of companies in the EU sell services and goods online within their own country, only 8.1 per cent offer them in other EU Member States. The fact that the strategy adopted has not translated to any significant extent into the way businesses operate, and in particular their digitalisation, is also evidenced by an analysis of the data provided by Eurostat. In 2015, 16.2 per cent of companies in the European Union were accepting online orders, rising to 19.7 per cent in 2022. In the seven-year period separating the figures quoted, we have experienced rapid growth in the e-commerce sector and the COVID-19 pandemic, which has resulted in an even more intense increase in the share of online shopping in consumers’ shopping baskets. In light of these developments, an increase of just 3.5 percentage points is disappointing.

    Moreover, due to the specificity and dynamics of the EU legislative process, as well as the Commission’s growing ambitions, the regulatory landscape for the digital economy in the EU is becoming increasingly unclear, as we wrote above. As a result, companies are finding it increasingly difficult to navigate the legal reality. The problem is particularly relevant for smaller entities without professional assistance.

    There is a lot of work ahead, but the overall contribution of the Digital Single Market to the EU economy is undeniable and measurable. It is estimated to generate almost EUR 177 billion in additional growth each year. Therefore, when setting the direction of digital policy, the Polish presidency should focus on conducting initiatives that integrate the digital economies of EU Member States. In a dynamic world where technology is an integral part of our lives, the Digital Single Market is the basis for the future of the European economy. One of the main barriers to its development remains the inconsistent implementation of common rules. As we take over the presidency of the Council of the EU, we should aim to improve the functioning of the European Semester – which is part of the EU’s economic governance framework – and introduce an assessment of how Member States are achieving their single market objectives, which will certainly serve to harmonise the implementation of EU legislation.

    Small and medium-sized entrepreneurs, who, despite having such a significant impact on the economic development of Europe and Poland, bear the relatively highest costs of export activity, must also be at the centre of discussions on the vision of the Digital Single Market. An active policy to support their international expansion should therefore not only be an ambition of our government, but also a Polish contribution to the debate on the challenges that the European institutions should face in the near future.

    Research and development cooperation

    The digital economy is the knowledge economy. According to the concept of a knowledge-based economy (GOW), one of the most important factors determining the pace and level of economic development of a region is the innovation, transfer and use of knowledge. The ability to create it and transform it into new technologies and innovative products and services provides a competitive advantage for entrepreneurs. To make this possible, the activities of research and development institutions, which are the centre of innovation, are extremely important.

    From the outset, the European Union’s research and technological development (RTD) policy has played an important role in European legislation. In the 1980s, with the introduction of the European Framework Programme for Research, the scope was further expanded. In 2014, the majority of EU research funding was grouped under Horizon 2020, which ran from 2014 to 2020 and aimed at ensuring the EU’s global competitiveness. Its successor, ‘Horizon Europe’, which is the European Union’s current research and innovation programme, was launched in 2021 and will run until 2027.

    The Polish presidency should focus on shaping a more ambitious EU research and development policy and aim to significantly increase overall research spending in Member States in order to maintain and strengthen the Union’s international competitiveness. To this end, cooperation should be intensified with non-EU partners, and in particular with the United States, which has for years defended its status as the leading development-spending country. Analysts from the Polish Economic Institute presented the results of a report prepared by the European Union in Tygodnik Gospodarczy No. 6/2023, which examined the 2,500 companies with the largest research and development expenditure in the world in 2021. Of the 2,500 companies, as many as 822 are from the USA, 678 from China, 361 from the European Union and 233 from Japan. The remaining 406 companies come from 22 countries around the world. The number of EU companies in the list decreased by as many as 41 compared to 2020. At the same time, the number of US companies increased by 43 and Chinese companies by as many as 81. Not a single company from Poland was included in the list.

    There is no doubt that those countries that invest the most in research and development activities are winning the technological power race. In this context, the approach of the European Union and individual Member States to funding, supporting and promoting R&D activities plays a decisive role in shaping the future of the Old Continent. It is not only about enterprise restructuring, research, development and innovation, but above all about supporting small and medium-sized enterprises, which are the foundation of the European economy. If we want to join this technological race, we have to bet on a close integration of the activities carried out under the European funds and strengthen cooperation with business. Therefore, during the presidency of the EU Council, we should intensively support all initiatives concerning R&D cooperation in EU countries.

    Supporting the development of digital competences

    Digital transformation processes are leading to profound changes in the operating model of businesses, the economy and society. In the new model, one of the determinants of the competitiveness of economies becomes the level of digital competence of the population, the workforce and the number of skilled ICT professionals.

    Strengthening the digital skills of the EU’s current and future workforce is key to the long-term competitiveness of the European technology sector. Investment in education and training programmes in STEM (Science, Technology, Engineering, Mathematics) and computer science, with an emphasis on supporting underrepresented minorities and women, is essential. It is equally important that the EU’s immigration policy enables businesses to access the global talent pool to meet the growing demand for highly skilled digital professionals in the single market. EU immigration policy should support companies to recruit professionals from outside Europe so that our market can compete effectively with other global innovation centres. Small and medium-sized enterprises (SMEs) play a special role in the context of global competition. Digitalisation offers them the opportunity to increase efficiency and expand their markets, but it also comes with risks, such as cyberattacks and the need to constantly adapt to new technologies. Strengthening the digital skills of SME employees is a key factor in being able to compete successfully in the global marketplace.

    Strengthening digital skills is an investment in the future of the European technology sector. The Polish presidency should promote investment in education programmes, openness to global talents and support for SMEs, which will allow Europe to maintain and increase its competitiveness in the age of digital transformation. Particular emphasis should be placed on achieving the objectives of the policy programme ‘Path to the Digital Decade’ by 2030. The document sets out the directions for the development of the digital transformation of the European Union. It focuses on four main areas: digital skills, digital infrastructure, digitalisation of businesses and digitalisation of public services. Within the skills area, the ambitious targets have been set of increasing the number of ICT professionals to more than 20 million, a better gender balance in the profession and a minimum of 80 per cent of the EU population achieving basic digital skills.

    To strengthen digital capabilities, Member States can engage in large-scale international projects, pooling resources and increasing cooperation. The Commission, for its part, has pledged to help define and develop such projects. The prepared programme also establishes an annual cycle of cooperation in pursuit of common goals. The mechanism for cooperation with the Commission and Member States includes, among other things, a joint monitoring system based on the Digital Economy and  Society Index (DESI), an annual report assessing the progress of individual countries as well as recommendations and strategic action plans of EU Member States for the digital decade. Poland will take over the presidency of the EU Council five years before the set deadline for achieving the above goals, so it is worth verifying whether the adopted mechanisms effectively support the development of digital competences of EU citizens and introduce additional measures to support the Digital Decade programme.

    See more: Poland at the forefront of digital transformation in the EU. Priorities for the Polish presidency of the Council of the European Union

    Future of the Single Market for Services in the EU: Lunch Debate Summary

    Posted on by Malgosia

    Press Release

    25 September 2024

    Brussels

    Future of the Single Market for Services in the EU: Lunch Debate Summary

     

    On 25 September 2024, the Union of Entrepreneurs and Employers Brussels Office, in collaboration with the European Enterprise Alliance organized the event titled “The Future of the Single Market for Services in the EU” with Kosma Zlotowski that hosted the event in the parliament, Michał Kobosko, Member of the European Parliament took the floor speaking and a keynote was delivered by Ignacy Niemczycki, Undersecretary of State in the Ministry of Economic Development and Technology of Poland.

    “To unlock the potential of the services sector, we need streamlined actions and cooperation across Member States. The future of Europe’s economy depends on it.”

     — Ignacy Niemczycki, Undersecretary of State in the Ministry of Economic   Development and Technology of Poland

    Kosma Zlotowski, Member of the European Parliament as the host of the event welcomed and underscored the importance of removing barriers within the single market, particularly those affecting Polish businesses. Zlotowski reflected on his past work, noting the success of his earlier report, which highlighted the detrimental impact of over-regulation on businesses, especially SMEs. He emphasized the need for collaboration among Polish MEPs across political groups to advocate for Polish businesses in Brussels.

    Michał Kobosko, Member of the European Parliament, followed Zlotowski, focusing on the broader challenges facing the single market for services. He highlighted the increasing complexity of cross-border service provision and urged legislators to take a bold approach. He welcomed the European Commission’s intention to introduce a Single Market Barriers Prevention Act but expressed concern that the current proposals might not go far enough to address the deeper issues. Kobosko stressed the need for a concrete action plan and called for services to be placed at the heart of the EU’s economic strategy.

    Ignacy Niemczycki, Undersecretary of State in the Ministry of Economic Development and Technology of Poland, delivered a keynote speech. Niemczycki presented data  showing that intra-EU trade in services remains at the same level as trade between the EU and the rest of the world, pointing to a lack of political will as one of the primary reasons for this underperformance. He identified three main factors behind the stagnation: lack of political will, absence of a concrete action plan, and reliance on voluntary and fragmented initiatives. He introduced Poland’s “Black Book” on barriers in the internal market, which highlights the difficulty of cross-border service provision, particularly for posted workers. The third edition of this publication is planned for the upcoming Polish Presidency in the EU Council. Niemczycki concluded by calling for more ambitious political leadership to remove the 60% of barriers in the services sector that have persisted for two decades.

    Jakub Bińkowski, Director of the Department of Law and Legislation at ZPP, provided a comprehensive presentation on regulatory challenges in sectors such as transport, telecommunications, and financial services. Bińkowski cited striking statistics, noting that only 6% of intra-EU trade in services occurs between member states, a figure that has not significantly improved in two decades. Bińkowski called for urgent action to reduce the number of regulated professions and align national standards across the EU, which would facilitate the free movement of workers and services.

    Aleksei Trofimov, Policy Coordinator at the European Commission’s DG GROW (Industrial Policy and Single Market), spoke about the Commission’s three-pronged approach to removing barriers: implementation, enforcement, and ongoing dialogue with member states. He emphasized that the Commission remains committed to addressing fragmentation and ensuring that existing regulations are properly enforced, but highlighted the political challenges of achieving more widespread reform.

    Marcin Nowacki, EESC Member and President of the European Enterprise Alliance provided an industry perspective, emphasizing the real-world impact of regulatory fragmentation. Nowacki highlighted the difficulty faced by SMEs in providing cross-border services, pointing to sectors like real estate and medical services as examples where national regulations create unnecessary barriers. He also raised the issue of the mobility package and the posting of workers, which he argued have become overly complex and restrictive.

    Tomasz Bęben, President of the Association of Distributors and Manufacturers of Automotive Parts, discussed the difficulties facing the automotive industry in transitioning towards sustainability while remaining competitive. He highlighted the imbalance between EU regulations and the realities faced by European manufacturers, who must compete against companies in China and the US with fewer regulatory constraints. He welcomed further discussions during the Polish Presidency and expressed optimism that the EU could adopt a more balanced approach.

    Niclas Poitiers, Research Fellow at Bruegel, provided a macroeconomic overview, focusing on how the fragmented services market is weakening Europe’s overall competitiveness. He stressed that although manufacturing tends to dominate discussions about European competitiveness, services represent a critical component of the EU’s economic success.

    Lusyne Kesziszjan, Public Affairs Manager at the European Enterprise Alliance, focused on the challenges and opportunities in advancing the Single Market for services, which continues to lag behind the progress made in the goods.

    See more: Future of the Single Market for Services in the EU: Lunch Debate Summary

    Signed a Memorandum of Understanding, initiating cooperation on the future of trade between the European Union and Ukraine

    Posted on by Maja Jankowicz

    Kyiv, 12 September 2024

     

    Two leading employers’ organizations from Poland and Ukraine signed a historic cooperation agreement during the „Europe-Poland-Ukraine: Cooperate Together” conference in Kyiv on September 12th. The Federation of Employers of Ukraine (FEU) and the Union of Entrepreneurs and Employers of Poland (ZPP) signed a Memorandum of Understanding, initiating cooperation on the future of trade between the European Union and Ukraine.

     

    Ruslan Illichov, General Director of the Federation of Employers of Ukraine, and Marcin Nowacki, Vice President of Poland’s Union of Entrepreneurs and Employers, have signed a document formalizing the organizations’ cooperation in the coming years. The parties publicly announced their intention to join efforts in supporting Ukraine’s accession negotiations with the European Union, especially regarding trade, and business practices and regulations harmonization.

    The European Union has formally opened long-awaited accession negotiations with Ukraine in June 2024. The end of the Autonomous Trade Measures system overlaps with the end of Poland’s upcoming presidency of the Council of the European Union. As Ukrainian and Polish businessowners and employers, we are acutely aware not only of common interests, but also of the difficulty in finding middle ground in contentious issues, the parties state in the opening remarks of the document.

    The two organizations have worked together in the past. At the end of 2023, they organized and mediated unprecedented negotiations between Polish and Ukrainian hauliers during the protest of Polish hauliers at the Ukrainian border.

    The upcoming time will be crucial for relations between Poland and Ukraine, as well as between Ukraine and the European Union. We expect the coming year to be challenging. Thanks to our organizations’ cooperation, FEU and ZPP already have experience meeting such challenges head-on. Signing the agreement cements our will to cooperate and support each other in providing the best outcome for all parties involved – said Ruslan Illichov, General Director of the Federation of Employers of Ukraine.

    Cezary Kaźmierczak, President of Poland’s Union of Entrepreneurs and Employers, remarked: Cooperation between Poland and Ukraine has the potential to change the balance of power and the shape of Europe. While our governments build the framework, businesses in both countries need to tighten their cooperation. If we communicate, cooperate, and constantly improve, we can create a peaceful and prosperous future for our people.

    The parties set out to organize a series of consultations with representatives of employers, entrepreneurs, and social partners in Poland, Ukraine, and Brussels to produce a joint White Paper before the end of 2024 defining and advocating for the common interests of Polish and Ukrainian businesses.

    The newly formalized partnership has reached out to the officials responsible for the economic development of their respective countries to offer their capabilities and experiences in any and all initiatives relating to the future of trade between the European Union and Ukraine. The copies of the Memorandum were sent to the First Vice Prime Minister of Ukraine and the Minister of Economic Development and Trade, Yulia Svyrydenko, and the Minister of Development and Technology of Poland, Krzysztof Paszyk.

     

    „Europe-Poland-Ukraine: Cooperate Together”  Conference

    Objective: to deepen Polish-Ukrainian economic cooperation in the areas of transport and logistics, trade, and infrastructure cooperation. Also, to outline Poland’s role during its presidency of the EU Council.

    The conference brings together high-ranking representatives of government, business, and the expert community from both countries to discuss the prospects for the development and consolidation of Ukraine’s and Poland’s economies. It provides an opportunity to establish B2B contacts between Polish and Ukrainian businesses.

    The event focuses on the following key topics:

    • Current state and prospects of Polish-Ukrainian cooperation: discussion of economic relations between Ukraine and the EU, as well as opportunities to deepen cooperation between Ukraine and Poland in the context of European integration.
    • Scaling up trade cooperation: consideration of opportunities for consolidating the economies of the two countries and developing trade between Ukraine and Poland, including prospects for entering new markets.
    • Infrastructure cooperation: the importance of developing transport infrastructure and transshipment terminals, which will further strengthen ties between the two countries and ensure efficient logistics.

    Organizers: Union of Entrepreneurs and Employers of Poland (ZPP)

    Co-organizers: Totalizator Sportowy Foundation, Business for Ukraine Center

     

    Poland’s Union of Entrepreneurs and Employers

    Union of Entrepreneurs and Employers (ZPP) is the fastest-growing employer organization in Poland. The organization brings together 18 regional organizations and 22 trade organizations. They gather 21,089 companies (as of 31st December 2023) with a total of 772,272 employees. As a member of the Social Dialogue Council in Poland, ZPP uses its influence to promote free market, fair competition, legal stability, and economic transparency. ZPP is represented in Brussels through its Representative Office, European Enterprise Alliance membership, and SME Connect membership. The union has two representatives in the European Economic and Social Committee.

    https://zpp.net.pl/

     

    Federation of Employers of Ukraine

    The Federation of Employers of Ukraine (FEU) is the most influential association of Ukrainian businesses. Founded in 2002, the Federation has successfully represented and protected the interests of businesses in Ukraine and internationally for 20 years.

    At present, the FEU unites more than 140 sectoral and regional organizations of employers representing the most critical sectors of the economy of Ukraine, such as machine building, metallurgy, automotive, aerospace and defense industries, agriculture, chemical industry, IT, media industry, energy, medical and microbiological industry, construction, transport and infrastructure, retail and logistics, light and food industries, tourism, utilities, services sector.

    The Federation represents over 8,000 enterprises, collectively employing nearly 3 million people and generating about 70 % of the national GDP.

    https://fru.ua/ua/

    12.09.2024_Press_release_Kyiv

    Commentary on the Cooperation Agreement Between the EESC and EP

    Posted on by Malgosia

    Brussels, 4 September 2024

    Commentary on the Cooperation Agreement Between the EESC and EP

    Recently, the transformation of collaboration between the European Economic and Social Committee (EESC) and the European Parliament (EP) has reached an unprecedented new level through the signing of the “Cooperation Agreement between the European Parliament and the European Economic and Social Committee”. This accord marks a major innovation in terms of EESC rapporteurs being able to directly engage with the EP committee work, thus bolstering the transnational structures of influence between an EU executive and legislature. Several important elements of this agreement need to be emphasized in terms of the role of EESC rapporteurs, the overall dynamics between the EESC and the EP, and the impact on national employers’ organizations.

    See more details: Commentary on the Cooperation Agreement Between the EESC and EP

    Unlocking Growth: Overcoming Barriers to the Single Market for Services in the EU

    Posted on by Malgosia

    Brussels, 19 August 2024

    Unlocking Growth: Overcoming Barriers to the Single Market for Services in the EU

     

    Union of Entrepreneurs and Employers (ZPP) & European Enterprise Alliance, present our position regarding the limitations on the EU Single Market’s for services. The progress of services liberalization within the EU has lagged. Unlike the well-developed Single Market for goods, the services sector remains underdeveloped, resulting in slower economic growth, lower employment rates, and diminished competitiveness. The 2023 Annual Single Market Report highlights that trade integration in services was just 3% in 1993, increasing to only 6% by 2021, illustrating a stagnation in market integration. The Union of Entrepreneurs and Employers (ZPP) & the European Enterprise Alliance, reaffirms our commitment to fostering economic cooperation within the EU. As we navigate current challenges, we strongly advocate for addressing the significant limitations on the freedom of services

    Read more: Unlocking Growth: Overcoming Barriers to the Single Market for Services in the EU

    Brief on Committee Changes in the New EP Term

    Posted on by Malgosia

    Brussels, 25.07.2024

    Brief on Committee Changes in the New EP Term 

    1. Introduction 

    The European Parliament has confirmed the list and size of its committees and delegations for the first half of the 10th legislative term. This brief outlines the key changes in committee composition, with a particular focus on the Industry, Research, and Energy (ITRE) and Environment, Public Health, and Food Safety (ENVI) committees, as well as the newly established Public Health (SANT) sub-committee. 

    1. General Changes in Committees 

    The European Parliament has 20 committees and four sub-committees. The number of members in several committees has been adjusted to reflect current priorities and demands. Notable changes include the increase in the size of the ITRE and ENVI committees, both of which now have 90 members. 

    1. Focus on Key Committees 

    A) Industry, Research, and Energy (ITRE) 

    The ITRE committee has seen a significant expansion, increasing its membership by 12 seats to a total of 90 members. This change underscores the Parliament’s commitment to leveraging decarbonization as an opportunity to boost Europe’s industrial competitiveness. 

    Key members and their roles include: 

    • Borys Budka (EPP), the newly elected chair, known for his work on restructuring Polish state enterprises. 
    • Ville Niinistö (Greens), who retains his seat but relinquishes his position on ENVI. ● Other notable members include Niels Fuglsang, Jens Geier, Nicolas Gonzalez Casares (S&D), Christophe Grudler, Bart Groothuis (Renew), and Michael Bloss (Greens). 

    B) Environment, Public Health, and Food Safety (ENVI) 

    The ENVI committee also expanded, now comprising 90 members, reflecting the high demand and importance placed on environmental and public health issues. 

    Key members and their roles include: 

    • Alessandra Moretti (S&D), anticipated to chair the committee, bringing her extensive experience since 2019. 
    • Peter Liese (EPP), known for his work on emissions trading systems. 
    • Other prominent members include Cesar Luena, Mohammed Chahim (S&D), Pascal Canfin, Gerben-Jan Gerbrandy, Emma Wiesner (Renew), Jutta Paulus, and Tilly Metz (Greens). 

    C) Public Health (SANT) 

    The new Public Health sub-committee (SANT) has been established with 30 members. This committee will focus on addressing pressing public health challenges, particularly in the wake of recent global health crises. 

    1. Allocation and Distribution of Seats 

    The composition of committees and sub-committees is designed to reflect the overall makeup of the Parliament. Seats are allocated among political groups in a manner that ensures fair representation. For instance, the socialists (S&D), liberals (Renew), and greens have strategically placed their key members in influential committees. 

    1. Key Positions 
    • ITRE: Borys Budka (EPP) is set to chair the committee. 
    • ENVI: Alessandra Moretti (S&D) is the leading candidate for the chair position. 

    Notable substitutes include Bas Eickhout (Greens) and Marie Toussaint (French Greens) for ENVI and ITRE, respectively, who, despite their substitute status, are expected to play significant roles. 

    1. Current Status 

    The names of the MEPs appointed to each committee have been announced, with the election of committee chairs and vice-chairs taking place during their constitutive meetings on July 23, 2024. The committees are poised to be pivotal in shaping legislative proposals, holding debates, and conducting hearings with external experts. 

    1. Conclusion 

    The changes in committee compositions reflect the European Parliament’s strategic priorities for the new term. With increased focus and expanded membership in key committees like ITRE, ENVI & SANT, the Parliament is poised to tackle critical issues related to industrial competitiveness, environmental protection, and public health. 

    See more details: Brief on Committee Changes in the New EP Term 

    First edition of Ukrainian Tech Meeting Conference held in Google Campus Warsaw

    Posted on by Maja Jankowicz

    Warsaw, 26.06.2024

    First edition of Ukrainian Tech Meeting Conference held in Google Campus Warsaw

     

    On June 18, 2024, the Ukrainian Tech Meeting conference took place at the Google for Startups Campus in Warsaw, a hub dedicated to fostering innovation and supporting startups. This event aimed to showcase the remarkable potential of the Ukrainian tech sector, which, despite the ongoing war since 2022, has not only survived but also thrived amidst the turmoil caused by Russian military aggression.

    “Currently, we see that the global market is becoming more accessible… Before the full-scale Russian invasion, Ukrainian companies mainly focused on the local market. Now everyone understands that due to the current situation, we need to scale our operations more broadly,” stated Andrii Sukhov from Checkbox.

    The conference provided a comprehensive overview of the Ukrainian tech sector’s evolution more than two years after the war’s outbreak. Experts shared their insights on crisis management, business relocation, and new export opportunities. Additionally, the potential for collaboration in the defense-tech sector was highlighted.

    “The Totalizator Sportowy Foundation consistently implements actions for the Polish-Ukrainian community. The ongoing Ukrainian Tech Meeting event shows both us—Polish citizens, Polish entrepreneurs, and Ukrainian ones—that such initiatives are justified and underscore the importance of international cooperation,” emphasized Izabela Wyżga, President of the Foundation.

    Attendees had the opportunity to listen to keynote speeches and panel discussions featuring industry experts, tech leaders, and government representatives. These sessions provided valuable perspectives on development and investment opportunities within the tech sector.

    “Since the war escalated in February 2022, we launched the Google for Startups Ukraine Support Fund, which supported 50 startups with up to $100,000 in equity financing. We received nearly seven hundred applications. The great interest in the program led us to continue the Fund initiative and support Ukrainian startups further,” explained Michał Kramarz, Head of Google for Startups.

    Among the distinguished experts participating in the conference were:

    Alex Bornyakov, Deputy Minister of Digital Transformation of Ukraine

    Michał Kramarz, Head of Google for Startups, Central and Eastern Europe

    Przemysław Kania, General Manager of Cisco Poland

    Andriy Kolodyuk, Chairman of the Board of the Ukrainian Venture Capital and Private Equity Association (UVCA)

    Denys Gurak, Co-Founder of MITS Capital

    Oleh Piskozub, Country Director of Intellias Poland

    Denys Sychkov, Director at Horizon Capital

    During the event, it was noted that many Ukrainian IT companies have a long history of working with clients across the globe. The war introduced numerous challenges, such as the availability of infrastructure, a lack of new projects in Ukraine, and specialists being mobilized. Observing the 2022-2024 period, it is clear that these operational and communication challenges were successfully addressed by the majority of Ukrainian IT players.

    However, the global market turbulence, cost savings, and changes in the structure of demand represent more complex issues and negatively impact revenue. Adaptability, innovation, and a creative approach to marketing and sales have started to play a key role in the ability of Ukrainian IT companies to expand their business. Unfortunately, not many companies were able to cope with these challenges properly, and future business prospects are not so bright at the moment.

    One of the event’s outcomes is that partnering and cooperating for Polish and Ukrainian companies is important with for gaining further business growth.” – Oleksandr Pluzhnikov, Head of Cyber Security Office at ELEKS.

    The conference was part of the Business for Ukraine Center project, a collaboration between the Union of Entrepreneurs and Employers and the Totalizator Sportowy Foundation.

    Event partners included: Polish-Ukrainian Startup Bridge, Ukraine Invest, IT Ukraine Association, and the Coalition for Polish Innovations.

    Content partners: Google for Startups, FundingBox.

    Media partners: BiznesAlert, CyberDefence24, Diia Business Warsaw.

    The event was held under the honorary patronage of the Ministry of Development and Technology and the Mayor of Warsaw.

    More: 26.06.2024_Press_Release_UTM

     

    Opinion of ZPP Chief Economist Piotr Koryś on the factors driving development in post-World War II Europe

    Posted on by Weronika Marzec

    Warsaw, 24 April 2024


    Opinion of ZPP Chief Economist Piotr Koryś on the factors driving development in post-World War II Europe


    Determinants of European economic development from the end of the Second World War to the present day

    The 20th century saw a continuation of the development of Western Europe, interrupted by world wars, the crises of the interwar period and the oil crisis. After the Second World War, there were several waves of dynamic growth in the countries of the European Community and later the EU. Throughout the period, European countries have retained a high capacity to produce human capital. In addition, due to the level of technological advancement of European economies, at least some of EU member states can be counted among the technological leaders. However, in recent decades, development problems have been intensifying due to a number of factors, including demographics and the model of European social policy affecting labour costs. Another growing and serious challenge is the EU’s industrial policy oriented towards the creation of development niches that cannot be exploited. Since the end of the Second World War, European countries have also been benefiting from globalisation as one of the main global manufacturers and suppliers of advanced high-cost services.

    The period after the Second World War brought a wave of rapid growth sometimes referred to as economic miracles. This was the case for Germany, France and Italy – key EEC economies. There were several factors behind the first wave of growth. First of all, the economies that had been destroyed by the war and were returning to civilian production had considerable untapped potential in terms of human capital, labour, and in part also material capital and infrastructure (although not always fit for use). Secondly, the American programme for the reconstruction of Europe created suitable conditions for these resources to be used – the inflow of capital, as well as currency that allowed to rebuild trade between European countries, became key drivers of development. Thus, it can be said that the years immediately following the war were a period of a return to past upward development trajectories and a relatively efficient use of production factors.

    In addition, American policy at the time was oriented towards creating conditions conducive to economic integration, both at the level of individual companies (co-operation) and states. In the face of mutual lack of trust in war-ravaged Europe and efforts to rebuild national economies, problems related to currency convertibility were an important factor inhibiting these processes, although these were partly solved through bilateral trade agreements. For several years, the partial dollarisation of the European economy facilitated international trade. The Marshall Plan also brought an influx of American technology, new methods of organising production, and direct investment. The commercialisation of US technology in Europe, the growing use of military technologies for civilian applications, US development aid and the restoration of pre-war economic potential with macroeconomic stabilisation led to a rapid increase in the wealth of Western European societies. This resulted in an increase in demand for consumer goods. It should be pointed out that European economies were highly competitive at the time (due to relatively low labour costs, high productivity, favourable demographics and social cohesion).

    These were the primary sources of the post-war economic miracles – a period of rapid economic growth, both in absolute terms and in comparison with the USA. The potential for this growth has been exhausted with increasing tensions in the global economy. The collapse of the Bretton Woods system, the decolonisation processes and, finally, the period of stagflation associated with the oil crisis contributed to the slowing down of this dynamic. In the meantime, recognised European brands expanded globally (in such categories as white goods, consumer electronics, the automotive industry as well as specialised capital goods and products in the modernised light industrial sectors, where Italian and French companies were gaining a competitive advantage despite rising production costs).
    Several factors were behind the growth at the time, including the closing of the technological gap to the point where European industry took the lead in certain industries and the transformation of European societies into urban societies characterised by mass consumption. This process had already started before the First World War, but was slowed down by years of war and crisis. It was later resumed by the start of the economic integration process.

    This third factor was especially important given that,  the Treaties of Rome gave major impetus to the rapid integration of the major economies of continental Western Europe(after a dozen years or so, the United Kingdom also joined this group of countries). The rapid broadening and deepening of the market opened up new prospects for European companies, which were able to grow in size as the European market was becoming a ‘vestibule’ to global markets. Germany soon became one of the world’s largest exporters, with France and Italy also generating significant international turnover.

    This period of rapid global expansion allowed many European companies established before the Second World War to rebuild their position and was conducive to the development of new ones, as well. The increase in labour costs served to stimulate the R&D sector and promoted productivity gains. In turn, the falling cost of capital encouraged investment in new industries. The regulatory role of the European institutions was quite limited at the time, and national regulations tended to focus on protecting the interests of workers rather than creating new economic sectors. Environmental regulations began to significantly improve the quality of life for Europeans, while competing labour costs had not yet become a challenge for the most developed economies.

    The oil crisis of the mid-1970s brought a slowdown in growth. The internal migration within Europe underway since the 1960s as well as the economic slowdown halted the labour cost dynamics in the countries of the European core (especially Germany, the UK and France). This was due to waves of immigrants both from southern Europe and from behind the Iron Curtain, which kept the European economies competitive.

    The subsequent wave of rapid growth was further driven by the enlargement of the European Economic Community in the 1970s and later in the 1980s (what proved crucial was the accession to the European Community of less-developed countries, including Ireland, Greece, Portugal and Spain). This created suitable conditions for the relocation of parts of the manufacturing sector, especially to southern Europe (through direct and capital investment). At the same time, starting in the 1970s, after a decade of stagnation, the integration processes, especially in terms of monetary integration, accelerated. The result was the creation of the European Monetary System, which brought significant benefits to businesses, especially those active on European markets.

    An important growth factor for the enlarged Community was the convergence process of the newly incorporated economies. The complementary flows of capital and labour added considerable potential to the European economy.

    During this period, the key growth factors were:

    • closer economic integration;
    • broadening the integration grouping;
    • efficient allocation of capital, labour and human capital resources within the integration grouping.

    The end of the Cold War, the collapse of the USSR and the subsequent enlargement of the EU contributed to another wave of economic growth in Europe. It was driven by the expansion of the market as a result of two successive waves of expansion of the Community after the end of the Cold War (which included the neutral countries Sweden, Austria and Finland, and later a large group of countries from behind the Iron Curtain). Once again, this made it possible to benefit from the efficient allocation of human and physical capital as well as labour resources (including migration of workers to the countries of the European core from Central and Eastern Europe and investments made in the countries of the region). The need to rebuild and modify the transport infrastructure (such as roads, railways, but also urban spaces) in the newly acceded countries, made possible by EU funds and carried out with the significant participation of experienced companies from the European core, also become a catalyst for growth.

    At the same time, the processes of deepening integration accelerated, as reflected by the single political formula of the European Union, a common currency, and the expansion of the Schengen area. This was beneficial for European companies. During this time, however, global competition revolving around labour costs began to intensify. The competition from Southeast Asian countries was, over time, becoming a problem.

    At the beginning of the 20th century, and in particular with the advent of the Great Financial Crisis (2008–10), European industry and the competitiveness of European companies started to decline. The positive effects of the subsequent phase of European integration were felt relatively briefly in the European core, although the new form of the Union (with 25–28 members) brought another wave of growth – although driven mainly by processes of convergence and the relocation of industry to the new member states.
    Industrial and development policies served as political tools to stimulate development, specifically economic evolution.

    Europe’s economic development in recent decades has been linked to new concepts of economic policies designed to foster the development of businesses and especially that of industry. In historical terms, the first wave of post-war industrial policies was linked to the Marshall Plan. The period of economic miracles – the golden age of European economic development – brought in turn a wave of national policies supporting the specialisation of the countries of the European Community. These were based on identifying winners – companies and sectors that were to succeed with state support. At the dawn of the European integration process, the European Coal and Steel Community was established, oriented towards sectoral industrial policy at Community level.

    From the 1970s onwards, this strategy was replaced with the idea of liberalisation and moving away from state interventionism towards building a market environment conducive to development. In particular, this meant deregulation and a drive to reduce companies’ operating cost. Industrial policy took on a horizontal approach. At the level of the European Community, it was becoming increasingly clear that the lack of coordination of national development policies (including industrial policies) was a barrier to faster development. This resulted in the introduction of regulations at European level to ensure a favourable market environment, while at the same time fostering national and supranational development strategies, especially those oriented towards research and development in key sectors.

    This way of thinking prevailed in the 1990s and 2000s, as reflected in the Lisbon Strategy of 2000, the aim of which was to create a framework for the development of citizens, companies and economies that would make the EU a leading global economic force, both in terms of productive capacity, innovation and the quality of life.
    The financial crisis of the end of the first decade of the 21st century brought another change in the approach to development and industrial policies. The involvement of the state in building and restoring domestic industrial capacity and modernising manufacturing processes was a fairly widespread and global, not just European, response to this crisis. The return to industrial policy gained a new dimension when its aim became to create a framework for economic development adapted to increasingly boldly formulated climate policies.

    Since then, industrial policy has become a tool integrating both the previous experience of vertical, sectoral industrial policies and horizontal regulatory policies. This type of industrial policy has had a significant impact on shaping the market environment in which European companies operate. Despite their active participation in shaping many of these policies, it has proven to be extraordinarily challenging to confront the challenges of global competitiveness and adapt to regulatory frameworks at the same time.

    European industrial policy today

    In many areas, the European Union seeks to be a regulatory reference point, a leader of positive change and a model for shaping the regulatory environment for the whole world. The same is true of EU development and industrial policy. In this case, the aim has become to identify or find niches for the green economy and, through regulatory measures, to create suitable conditions for European companies to succeed in them as global pioneers. In other words, regulatory barriers are supposed to shape the economic playing field in such a way as to foster innovation in desirable sectors and ensure their successful commercialisation.

    To understand the difficulties involved in making policy, it is worth taking a look back at the experience of a few key sectors in the European economy. In the case of sectors that are key for green transformation, where global competition is taking place, the niches created have been taken over by external competitors. What is meant here is wind power and photovoltaics, where the EU share in global production has fallen dramatically in favour of China despite the efforts of the European Commission.
    The results of attempts to build a strong position in the BEV sector through regulations banning the production of combustion cars have been worrying so far. The position of European car companies, one of the key sectors of European industry, has been unusually weak. This could have an impact on the European labour market due to the high level of employment in this sector.

    Climate regulations are also affecting, albeit to a lesser extent, the competitive position of an increasing number of sectors due to the fact that they are not as strictly enforced in many regions competing with Europe. This means that, in addition to high labour costs, European companies are facing another challenge driving up production costs. This raises concerns that the new concept of industrial policy in support of the green transition could, in its current formulation, become a development challenge for the European manufacturing sector. Regulatory pressure is often intended as a response to the misidentified (including by the companies themselves) needs of large corporations, including those in the automotive sector. In turn, support measures provided at EU and national level often limit the possibility for new industries to develop spontaneously from the start-up level. In the US and China, successful automotive start-ups such as Tesla are trying to challenge unprepared and insufficiently agile large European car companies. This, in turn, begs the question whether the model of fostering innovation and shaping the development of the manufacturing sector through regulatory barriers that raise operating costs should be pursued in the current model. The objectives defined in the Green Deal should be pursued, but the way in which they are achieved should be reconsidered so as not to compromise the situation of European businesses. Otherwise, there is a serious risk, at both the political and economic level, of preventing the achievement of these objectives.


    See more: 24.04.2024 Opinion of ZPP Chief Economist Piotr Koryś on the factors driving development in post-World War II Europe

    ZPP’s commentary: The future of Europe according to Macron

    Posted on by Weronika Marzec

    Warsaw, 10 May 2024

     

    ZPP’s commentary: The future of Europe according to Macron

     

    • French President Emmanuel Macron presented at the Sorbonne his vision for changing the priorities of the European Union by strengthening its global competitiveness in key and emerging economic areas, strengthening the protection of the EU’s external borders and building an EU military force.
    • The French President accurately defines the problem that the EU is currently facing, namely the growing disparity in economic potential between Europe and other economic powers.
    • The French policy for the coming years is relevant from the perspective of the Polish Presidency of the Council of the European Union, which is to commence in the first half of 2025.

    Ahead of the upcoming Elections for the European Parliament that will take place in June, French President Emmanuel Macron, presented at the Sorbonne on 25 April his vision for strengthening the European Union under French leadership by strengthening cooperation between member states, particularly in such areas as defence  and monetary and investment policies.

    It was not a coincidence that Macron’s speech focused on international affairs, avoiding the issues of France’s numerous internal policy problems, which was reminiscent of the rhetoric of strengthening Europe and France’s role that he adopted in 2017 presidential campaign.

    According to Macron, the European Union needs to strengthen its technological, energy and industrial independence as well as equip its external borders with better protection. The means to achieve these goals is to double the EU budget. The French President referred to the need to bridge the gap between the EU and China and the US in terms of competitiveness, proposing the creation of a capital markets union as a platform for new investors in the European economy. Other proposals included a change in the policy of the European Central Bank, which, in addition to its inflation target, should also focus on economic growth and climate protection.

    In his speech, Macron returned to his vision of building a European defence system, while emphasising the important role of NATO and France’s nuclear capability as a guarantor of security in the region. According to Macron, security in Europe will not be a priority in US foreign policy in the coming years. Therefore, in order to be able to respond to the growing threats from the east, he proposed the creation of a European Military Academy to train future military and civilian cadres and, in the future, a rapid reaction force that would be a de facto EU army.

    It is definitely worth keeping a close eye on the comments made by the leader of one of the strongest countries in the European Union. A constructive note in the speech was the acknowledgement of the gap between the EU from the rest of the global powers, and the commitment to bridge it. Without a proper diagnosis we will not find appropriate solutions, so the fact that the leader of one of the leading powers in the EU recognises the crisis that the EU is facing – both in economic and political terms – is encouraging. On the other hand, the solutions proposed by President Macron did not address the need to restore the competitiveness of the European economy or to reduce the administrative and fiscal burden on companies in the EU. Far from it, the proposal to double the EU budget rather involves further levies to boost the EU’s own resources. The recurring topic of the need to develop European ‘sovereignty’ in various areas seems like a platitude. As far as the self-sufficiency of the EU in the sectors mentioned is concerned, nowhere (neither in the speech in question nor anywhere else) is it indicated exactly what such sovereignty would mean and how Europe should pursue it. If this is understood as creating an environment conducive to the growth and development of its own entities with global potential – it is difficult to disagree with this recommendation. In practice, however, it often boils down to driving players from other continents out of the European market.

    President Macron’s speech, in terms of diagnosis, partly coincides with the conclusions that led to the launch of the Focus on Europe project. Just 15 years ago, the EU and US economies were of comparable size; today, EU GDP is half that of the US. This is not the result of dynamic growth in the USA, but of a slowdown in the EU economies. For years, the ZPP has highlighted the problem of over-regulation of many sectors and, even worse, the practice of gold-plating by Member States, whereby the original intentions of EU directives are extended when being transposed into the national laws. Poland, taking advantage of its EU presidency starting in Q1 2025, has an excellent opportunity to slow down this trend, which is particularly in the interests of the economies still developing within the Union. This could be a step on the path to rebuilding European power – and President Macron’s speech quite clearly resounded with evocations of this goal.

    See more: 10.05.2024 ZPP’s commentary: The future of Europe according to Macron

    Leaders of the TSL sector at the ZPP conference ‘Poland in Motion’

    Posted on by Weronika Marzec

    Warsaw, 18 April 2024


    Leaders of the TSL sector at the ZPP conference ‘Poland in Motion’


    The TSL (transport, shipping and logistics) sector is one of the champions of the Polish economy. In the more than 30 years since the political transformation, the sector has established a strong position on the European market. Today, the market faces a great opportunity for further growth, but at the same time companies have to deal with a number of challenges.

    After a difficult period of global crises, the market looks to the future with optimism, seeing the potential for growth, but also the need to adapt to new political and economic conditions. This and other topics were all discussed by the guests of the ‘Poland in Motion’ Conference organised by the Union of Entrepreneurs and Employers on 18 April in the Listing Room of the Warsaw Stock Exchange. Infrastructure Logistics Transport, which announced new strategies and solutions for the effective management of the sector.

    The Vice President of the ZPP Marcin Nowacki, delivering an opening speech, recognised the importance of the development of the national transport infrastructure for the development of the TSL sector in Poland.

    ‘The Union of Entrepreneurs and Employers is actively involved in the development of the TSL segment in Poland. Our involvement has visibly intensified in the context of EU regulations and the difficult situation on the Polish-Ukrainian border. We have advocated and continue to advocate for extensive measures to increase the capacity of border crossings, warehousing space, the expansion of domestic seaports, the development of the road and rail network, as well as the construction of the Solidarity Transport Hub. Our location on the map of Europe gives us the opportunity to become the largest transport and logistics hub in this part of the world’, said the ZPP Vice President.

    The event commenced with a panel discussion: ‘Poland on the European Map of the TSL Market’. Speakers drew particular attention to the challenges posed by the lack of investments driving rail and combined infrastructure development. Poland is a transit country between Western and Eastern as well as Northern and Southern Europe. For this reason, according to the speakers, investments should be made in rail transport corridors for road transport, as well as the development of intermodal transport.

    Panel II, ‘The TSL Sector in the Face of Contemporary Challenges’, addressed the most pressing challenges that the logistics and transport industry is facing.

    MEP Mirosław Suchoń, chairman of the parliamentary Infrastructure Committee, emphasised that one of the key issues in the context of the sector’s development is the proper shaping of the legislative and institutional environment.

    ‘This major challenge faced by the transport industry can be divided into two areas. The first concerns internal, national regulations. We need to organise the whole regulatory area so that companies can finally get on with running their business rather than focusing on bureaucratic obligations. On the other hand, however, we need to have a serious talk with our partners in the EU, as the majority of regulations are adopted in Brussels’, said Mirosław Suchoń.

    The TSL industry is particularly sensitive to changes in climate policy regulations, especially in the context of European Union initiatives, including the Green Deal and Fit for 55. The legislation introduced to reduce CO2 emissions and incentivise the use of greener solutions, such as low-emission transport or electrification of the vehicle fleet, will require companies to invest in new technologies and adapt to new standards.

    ‘In my view, there are two key areas that need to be addressed. One of these are regulations concerning carbon footprint reduction. The second challenge Poland has been facing for years is the shortage of labour. This applies to both drivers as well as warehouse workers’, emphasised Adam Galek, Member of the Management Board, Rohlig Suus Logistics.

    During the panel ‘Infrastructural Must-Haves – Essential Investments in Infrastructure’, speakers addressed topics related to the most important infrastructure investments for Poland.

    ‘Poland needs investments in road, rail and port infrastructure. This has been clearly vividly demonstrated by the events of recent months related to Ukrainian grain that should be handled quickly and efficiently at Polish ports and then transported further to other countries around the world. There are similar problems with other agri-food products, which need to be exported from Poland as quickly as possible. This is why the funds under the National Recovery and Resilience Plan are crucial to ensure that these investments are implemented in order to continuously improve Poland’s infrastructure’, stressed Stefan Krajewski, Secretary of State at the Ministry of Agriculture and Rural Development.

    In turn, Rafał Zahorski, Board Representative for Port Development, Zarząd Morskich Portów Szczecin i Świnoujście, paid particular attention to the link between port and rail infrastructure:

    ‘Poland’s maritime economy has been on the upward growth trajectory. Polish ports are developing. All ports allocate significant amounts to investment. At the moment, we are waiting for a very strong development impulse for the railway infrastructure, because this is the first condition for the ports to be able to absorb a much higher volume of cargo’, he stressed.

    In the concluding panel of the conference  ‘Can Poland Become a European Transport and Logistics Hub?’, discussions revolved around the accession of Ukraine to the EU. Today, it is certain that Poland will be one of the most important  links connecting Ukraine with the West. This requires strengthening and modernising existing routes and delivery models, but also creating new ones based on domestic infrastructure. However, transports from other parts of the world also pass through Poland. Our country has everything it takes to become the most important transport and logistics hub in this part of the continent.

    During the panel, Katarzyna Ostojska, Marketing Manager at Raben Logistics Polska, emphasised the importance of the conference in developing new strategies and technological solutions to effectively manage the TSL sector:

    ‘Conferences on transport, or transport solutions, and the logistics industry in general, are very important. They provide a platform for sharing experience, exchanging views and perhaps finding new ways to build a positive image of companies’, she emphasised.

    To solidify our position but also to provide the business with conditions for constant growth, the industry now needs strong investment impulses and a predictable, transparent law. These and a number of other issues were discussed during the ZPP Conference ‘Poland in Motion – Infrastructure, Logistics, Transport’ by experts, journalists, and representatives of government and business. The conference brought together representatives from the maritime, road, and rail transport industries but also from the agricultural sector and a number of other cooperating segments of the business community.

    The Minister of Economic Development and Technology assumed honorary patronage of the conference. The event was partnered by the Warsaw Stock Exchange. Honorary partners of the event were: The General Inspectorate of Road Transport, the Civil Aviation Authority, the Road and Bridge Research Institute and the Poznan School of Logistics. The media patrons were Obserwator Logistyczny and Polska Press.

     

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