Warsaw, 29^th May 2023

 

Press conference:
Marcin Nowacki elected the EU’s head of the EU-Ukraine Civil Society Platform

 

On 29^th May 2023 at 1 pm, at the Polish seat of the European Parliament and the European Commission, a press conference was held during which Marcin Nowacki, Vice-President of the Union of Entrepreneurs and Employers, was elected head of EU-Ukraine Civil Society Platform (EU-Ukraine CSP) representing the European Union. The platform operates within the framework of the European Economic and Social Committee (EESC) in Brussels, which is an EU advisory body.

At the conference, Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers, pointed out during his opening address that the European Economic and Social Committee is a platform for dialogue between employers, trade unions, NGOs, and politicians: “We are truly happy that a Pole has become the plenipotentiary for Ukrainian affairs, even more so a member of our organisation. Marcin Nowacki took on his new duties already at the beginning of the month.”

“The EU-Ukraine Civil Society Platform is the foundation of institutional cooperation between social partners from EU member states and Ukraine. I have been elected for a term of 2.5 years, and I hope that we will soon begin the accession negotiation process. This is what will motivate me the most in the months to come. After the negotiations start, the Civil Society Platform will become the EU-Ukraine Joint Consultative Committee,” – said Marcin Nowacki, the Union’s VP.

The EU-Ukraine CSP integrates social partners from the EU and Ukraine. The body aims to supervise the process of Ukraine’s integration with the EU and to integrate the business community and employees between the parties. As part of the undertaken activities, reviews of the process of adapting Ukraine to EU requirements and support in the field of Ukrainian business entering the EU market are held.

The EESC is an EU advisory body with a specific role in the EU’s decision-making process. Before being processed by the European Parliament, each regulation is subject to an opinion process at the EESC. It consists of 329 representatives of employers’ organisations, trade unions, and NGOs from all Member States.

Warsaw, 13 June 2023 

 

In order to ensure the development of SMR technology in Poland and Europe, we need fleet-oriented investments of regional coverage

 

That’s the conclusion of a discussion among industry experts, technology providers, investors and researchers who attended the “SMR – Modular Nuclear Energy for Business” conference on Monday, June 12, held in Warsaw by the Energy and Climate Forum of the Union of Entrepreneurs and Employers. PKN ORLEN was the Main Partner of the event, EDF was a Partner, and Honorary Patrons included three ministries – the Ministry of Climate and Environment, the Ministry of Development and Technology and the Ministry of State Assets, as well as the National Atomic Energy Agency, the National Center for Nuclear Research and the National Fund for Environmental Protection and Water Management.

The event brought together both nuclear lawmakers, the regulator, several US and European SMR manufacturers, recipients declaring interest in small reactors of various capacities and nuclear experts, who sought to take prepare an inventory of the state of the art of modular nuclear reactors to date and outline the outlook for the development of such investments in our country and region.

In the opinion of Adam Guibourgé-Czetwertyński, Undersecretary of State at the Ministry of Climate and Environment, the Polish nuclear special-purpose act and nuclear law are sufficient for SMR investments to be developed on their basis, with technology neutrality and a desire to streamline the processes involved in obtaining the necessary permits at the core of the national legislation. Nonetheless, seeing the growing interest in small nuclear reactors, work is currently underway at the ministry to detail regulations for smaller modular nuclear reactors. The minister also encouraged a concerted international effort to bring nuclear technologies from a background player to the front lines of energy transition efforts – as complementary solutions to RES and hydrogen investments.

According to Kamila Król, Undersecretary of State at the Ministry of Development and Technology, small nuclear reactors have the potential to become a lever of the Polish economy in the coming decades. SMRs can be a remedy for the rising cost of CO₂ allowances and ensure Poland has the right composition of the low-carbon energy mix on the one hand, and guarantee a stable and secure energy supply on the other.

As noted by Jarosław Dybowski, Executive Director of Energy PKN ORLEN and Vice Chairman of the Board of ORLEN Synthos Green Energy: “We cannot think of nuclear reactors today as classically understood power plants, which in the past were only meant to provide electricity. The use of SMRs in domestic conditions is naturally the replacement of depleted coal-fired units, but the modular reactors will also work in the combined heat and power economy and find application in numerous industrial processes.” District heating and energy-intensive industries are identified as the main beneficiaries of SMR technologies, and the number of entities declaring interest in these solutions is growing.

The main challenge appears to be not so much the technology of light-water nuclear reactors themselves, of which there are about 150 in operation worldwide and only their power and size need to be scaled up; it is the cost that may be a barrier. Experts agree that two aspects can help investors in this regard. On the one hand, suitable government guarantees and a refined financial model, so that involvement in SMRs for banks entails acceptable risks. On the other, the economies of scale brought about by a fleet-oriented investment campaign of regional range, which will reduce unit costs and build locally the competence, service facilities and structures necessary for the new sector.

“After listening to the participants of the discussion, several recommendations come to mind, such as the involvement of Polish regulators in work on harmonizing nuclear regulations and standardizing certification of SMRs in Europe, the need to consider establishing a TSO (Technical Support Organization) within the structures of the National Center for Nuclear Research and, finally, opening a debate on the future of the nuclear energy in the EU taxonomy, which assumes support for nuclear investments only until 2045, at the European forum.” – concluded Jakub Bińkowski, Board Member of the Union of Entrepreneurs and Employers.

The conference also touched upon many other aspects of SMR projects, such as safety considerations and the important role of the PPA, which will evaluate small nuclear on the same basis as full-scale nuclear investments. According to experts – despite the already clear support for nuclear in Poland – an extremely important aspect determining the success of SMR investments will be properly conducted communication due to the particular public perception of risk from nuclear facilities. As experts point out, there is no shortage of ideas for small nuclear reactors in the world today, as there are already about 80 projects at the “early design” stage, including also high-temperature reactors using other types of fuel and cooled by gas, HTRs (including a Polish one!) or nuclear batteries that can operate for 20 years without human intervention and the need for fuel supply. Another thread raised by the participants in the discussion was the possibility of involving Polish companies in the development of the European SMR sector, in which experts see significant potential given the pace of development of SMR projects in our country.

The event was attended by over 150 participants. The Union of Entrepreneurs and Employers will soon make a full recording of the conference available on its YouTube channel.

Link to the event page: https://zpp.net.pl/en/events/event/conference-smr-small-reactors-for-business-is-poland-the-smr-technology-incubator-in-europe/

 

Warsaw, 5^th April 2023

We need a strategy to restore Poland’s importance on the international arena!

On 4^th April at 3 pm, a conference inaugurating the Agenda Poland 2030 project was held in the Freedom Lounge. During the meeting, issues that are essential from the perspective of Poland were discussed, including national security, as well as how to respond to future challenges.

The dynamics of events that transpired in recent years are but a historical opportunity that is opening up for Poland. Not only our prosperity and security, but also the political order of the whole of Europe and its relations with what will emerge from Russia in the future may depend on how we make use of Poland’s growing significance in Europe today. The strategic goal of Polish policy should be to create a permanent Berlin-Warsaw-Paris axis within which decisions would be made on the most important aspects of European foreign and economic policies, as well as concerning the model of EU cooperation. To achieve this, Poland must be wealthy and strong. We want to help build it; therefore, we updated the programme of the Polish Agenda regarding the critical areas of the functioning of the state.

The first Agenda Poland was published 4 years ago. You can find it on our website: agendapolska.wei.org.pl. A number of our postulates resulting from that analysis of the political and economic situation were taken into consideration, while others over time have become even more urgent and are still waiting for their implementation. The experience of the first Agenda Poland gave us not only a wealth of knowledge, but also faith that even the most ambitious and seemingly abstract goals can be achieved. The project, to which we invite not only our experts, but all those who see the uniqueness of the moment and the opportunities ahead of Poland, will be widely consulted and will not be limited to pure theory, but also practical ideas for its implementation.

The following are our key postulates:

1. The most urgent task for the state is to restore the authority and dignity of the judiciary. Things have gone so far that the only option available is the Zero Option, which includes, among other things, the liquidation of the Constitutional Tribunal and the State Tribunal, and a transfer of their powers to the Supreme Court; the appointment of a new National Justice Board whose members would be appointed in equal numbers of 5 persons by the judiciary itself, the President of the Republic of Poland and the academic community, and 3 persons by the government of the Republic of Poland, the parliamentary opposition, and civic society (Social Dialogue Council, Commissioner for Human Rights). The National Justice Board should deal with disciplinary matters and carry out the decommunisation of the judiciary.
2. EDUCATION AND HIGHER EDUCATION. Radical reforms are necessary that will encourage the creativity, entrepreneurship, and inventiveness of Poles. We postulate, among others, for the introduction of an Education Voucher and changes to the role of the state in education – the state should not organise, but finance education, while schools ought to be transferred (excluding real estate) to parents, teachers, private companies, associations, local governments, foundations etc. by way of tenders.
3. The role of the state in healthcare ought to be changed from running hospitals, clinics, and medical facilities to financing healthcare for citizens. Furthermore, universal health insurance should be introduced, which the state would purchase for each citizen in the insurance company of their choosing. Insurers must organise themselves into a Reinsurance Fund in the event of bankruptcy of one of them.
4. If we are to quickly catch up with wealthy Western economies in terms of development and have the necessary funds for national defence, it is necessary to radically deregulate the economy according to the EU+0 formula, and to make the labour market more flexible. It is also necessary to introduce fundamental stability of the legal system. New economic regulations should only enter into force once a year, after a vacatio legis of at least twelve months.
5. SOCIAL POLICY. We are changing the model of social policy to a fully automated one. Both the available IT tools and data collected by the National Revenue Administration and the Social Insurance Institution are sufficient for this purpose. We eliminate the human factor in the social benefits’ process. Mechanisms for benefits valorisation should also be automated. We exclude affluent people from the support system, and at the same time we introduce the “one zloty for one zloty” rule so that exceeding the income threshold per family member is not tantamount to the loss of the entire benefit, but only its reduction in proportion to exceeding said threshold.
6. A key security objective is Poland’s ability to defend itself. At the same time, we draw attention to the necessity of the greatest possible involvement of the Polish defence industry. The potential of the Polish economy and science should be used to the maximum extent in defence of Poland. Purchases from foreign “shelves” should be limited to the absolute minimum.

We encourage you to have a look at the full contents of our Agenda, which can be found HERE.

Until now, these were Germany and France who decided the fate of Europe. Paradoxically, the geopolitical turmoil we are witnessing today means that Poland will be able to join these two countries, provided it introduces appropriate internal reforms. The outline of such reforms was presented by the Warsaw Enterprise Institute, the WEI Centre for Strategic Studies, the Union of Entrepreneurs and Employers, and the Consumers Forum on 4^th April 2023 at 3:00 p.m. at the Liberty Lounge.

During the conference, Adam Eberhadt, Director of the Centre for Strategic Studies, pointed out that the European Union is not about establishing dogmas, but pursuing a flexible form of cooperation. Poland’s strength lies in its initiative-taking policy and ability to build coalitions with the strongest European countries. This was the case recently with Internal combustion engine vehicles. As a country, we will become a valuable partner for Berlin and Paris, but only if we cooperate with them and stand together against them.

Cezary Kaźmierczak – President of the Union of Entrepreneurs and Employers said that when it comes to the economy, we are successfully catching up with wealthy Western countries. However, we are hindered in this race by a tragic tax system, bad economic law, and legal instability. These obstacles must be removed so that we can start acting faster, because it gives us a position in conversations with the Germans or the French. If we have a solid economy and an army, it will be possible to achieve the goal.

Tomasz Wróblewski – President of the Warsaw Enterprise Institute, in turn, stated that the goal is to create an agenda that everyone can make use of, which will determine our prospects and directions of action. Differences in society will always be there, but maybe when we engage in a strategy that deals with matters and not people, there will be less hatred.

Agnieszka Plencler – President of the Consumers’ Forum Foundation took up the topic of consumer choices vs. civic choices. Consumers, expecting social leadership in business, want to know the values and missions of brands, but in demanding situations, the price becomes the most important criterion for them. The citizen, on the other hand, choose the opposite, turning off rational thinking in a crisis situation and following emotions. This is how elections are held, people do not consider the politicians’ postulates of, and give in to empty promises. Consumers learn that when they pay, they demand, and the citizen pays, but does not account for efficiency.

Warsaw, 5^th April 2023

A new health platform – the Health Forum of the Union of Entrepreneurs and Employers

Healthcare has always been a challenge for experts, representatives of government and local government institutions, medical specialists, representatives of patients’ organisations, but also entrepreneurs and employers themselves. Health is and should be treated as the foundation of all values. But it also is an important branch of the economy. In response to the enormous needs of all stakeholders on the medical market and the challenges it faces, the Union of Entrepreneurs and Employers brought to life the Health Forum.

Daily problems of Polish healthcare are issues that concern us all and further deepen the need dialogue within the sector. These problems include, among others, the lack of reimbursement for treatment of given patients, employers’ costs related to employees on sick leave, queues to specialists, staff shortages, digitisation, and finally the effects of various pandemics, wars and their impact on medicine supply chain safety are.

“There is much to be done in healthcare. This is a particularly sensitive area that requires careful consideration of the views of all parties involved. Therefore, the Health Forum of the Union of Entrepreneurs and Employers, being a completely new health platform is an optimal place to exchange experiences, to present the postulates of various entities, to advocate ideas, and develop the best solutions with the possibility of their implementation in health policy,” says Aleksandra Sienkiewicz, Director of the Health Forum.

The goal behind establishing the Forum is to promote the postulates of rational systemic reforms and an attractive regulatory and institutional environment for companies from the universally understood health sector, which will ultimately translate into change that will benefit everyone. The Union’s Health Forum focuses on the organisation of an expert discussions on a broad spectrum of issues related to healthcare, from prevention to treatment, taking into account the financial and regulatory environment. As part of the Forum, we will publish commentaries, positions, and reports that help draw attention to current problems and find the best approach to difficulties in each area of healthcare in Poland.

Brussels, 27^th March, 2023

 

Working Lunch “Offshore Wind International Cooperation in the Baltic Sea”

 

It is important to accelerate the development of offshore wind across the European Union, while ensuring enhanced manufacturing potential of EU-based components. Overcoming the current supply crunch linked to ambitious climate targets, as well as the skills and permitting hurdles, will be crucial for upcoming wind farm investments – was the conclusion of the Working Lunch titled “Offshore Wind International Cooperation in the Baltic Sea”, that took place on March 27^th in Brussels.

The event co-hosted by Permanent Representation of the Republic of Poland to the European Union, the Mission of Canada to the European Union, and Union of Entrepreneurs and Employers event was supported by Baltic Power – which is developing one of Poland’s first offshore wind projects. The 1.2 GW project, to be operational by 2026, is a joint venture established by the Polish company PKN Orlen and the Canadian Northland Power.

The discussion was moderated by Matthew James, editor-in-chief of Energy Post, and featured a group of speakers that included the Ambassador of Canada to the European Union, Ailish Campbell; Arkadiusz Plucinski, Deputy Permament Representative of the Republic of Poland to the European Union; Mechthild Wörsdörfer, Deputy Director General at the European Commission’s DG Energy; Jarosław Broda, Board Member of Baltic Power; Malgosia Bartosik, Deputy Chief Executive Officer of Wind Europe; and Wadia Fruergaard, Head of Offshore & Supply Chain Policy at Vestas.

The event began with opening remarks from Ambassador Campbell who highlighted the Canadian government’s support for Europe’s energy transition and the role of Canadian industry in providing technology and expertise to the green energy transition in the European Union. She highlighted Northland Power’s capabilities in developing wind power projects in Europe and Canada, and emphasized the need to eliminate the energy dependence on Russia following its invasion of Ukraine, as well as the potential to expand secure and trusted renewable energy supply chains between the EU and Canada in manufacturing and operating green technologies.

Then, the Polish Ambassador, Mr. Arkadiusz Pluciński, took the floor highlighting the need to enhance Europe’s energy security in the midst of the ongoing war in Ukraine. And offshore wind development, particularly in the Polish part of the Baltic Sea area, is an important instrument to achieve this objective, as the natural conditions for its development are particularly favorable in Poland. Mr. Ambassador underlined that the timing to push for more offshore wind projects is now crucial as the EU Council is finishing negotiations of the revised Renewables Directive and is starting its work to form a position on the Electricity Market Design reform.

Mr. Jarosław Broda, the Board Member of Baltic Power, focused on the main challenges from the offshore wind farm developer’s perspective, highlighting the need to reflect the current economic situation – supply crunch and growing prices of components, and high inflation – in the levels of support for new offshore wind projects. He also stressed the need to speed up the permitting process and scaling up the volume of projects to come online by 2030 in order to meet the EU’s 2030 offshore wind energy objectives. Over 30 GW of new capacity is needed in only 7 years to achieve the targets. A particular challenge will be to maintain the EU-based supply chain with growing demand for projects and much lower prices of non-EU suppliers. Mr. Broda underlined that the project of Baltic Power will provide high local content, with Vestas announcing the construction of a turbine factory in Poland (in Szczecin). The factory will employ up to 700 people. Mr. Broda informed that the first phase of procurement for the Baltic Power project is finalized, with all key project components already secured. Moreover, the investment has recently obtained a positive notification decision from the European Commission with regard to its support via the contract for difference.

Mechthild Wörsdörfer, Deputy Director-General of DG Energy at the European Commission, discussed the Commission’s renewables objectives and underlined its support for the Baltic Power project as a contributor to the EU’s energy transition. Ms. Wörsdörfer focused on the importance of offshore wind development, as well as the Baltic Sea’s crucial role in it. She highlighted the role of faster permitting recently addressed by EU policy makers, as well as the push to enhance EU manufacturing capacity via the Net-Zero Industry Act announced by the Commission a few weeks ago. She also underlined the importance of the supply chain and skills as a priority for the European Commission. The Deputy Director-General emphasized the important contribution that Poland will make to developing offshore wind with its 6 GW of new projects coming online by 2030, and underlined that the Commission will be encouraging this process.

Wadia Fruergaard from Vestas addressed the current supply chain concerns and challenges, from the perspective of Baltic Power’s future wind turbine supplier. Project visibility remains the most important factor for the supply chain, as is the case for the Baltic region where the potential and volume have allowed Vestas to take initial investment decisions on local manufacturing. However, the supply chain in general is fundamentally challenged by offshore wind auctions. In her opinion, the so-called “race to the bottom” in tender systems that allow bids at 0 EUR/MWh or even at negative prices, should become a thing of the past. The entire supply chain becomes squeezed as a result, needing to either develop new technologies, or to significantly ‘cost out’ – neither option supports the real priority: scaling the industry to meet ambitions.

Małgosia Bartosik from WindEurope provided the EU perspective of the offshore wind sector, flagging the ambitious targets for 2030 and current supply chain issues. Mrs. Bartosik underlined that 2022 was the worst year for offshore wind in terms of investment decisions,  largely due to national market interventions and emergency market design changes implemented by different Member States – such as electricity price caps for renewables. She stressed the need for Members States and the EP to support the recently tabled European Commission’s Market Design proposal, in order to restore investor’s confidence and make Europe an attractive place to invest again. The Net-Zero Industrial Act proposed recently by the Commission in her opinion falls short of what is needed, as Europe only has 3 years to build new factories and scale up production to meet the 2030 targets with the European supply chain. Today, Europe can make 7 GW per year of offshore wind turbines. Government targets require the industry to be making 20 GW per year from 2026/27. She agreed that it is a pure volume, and not an innovation challenge for the EU wind industry. More concrete solutions and support measures for domestic investors, such as the ones introduced in the recent American Inflation Reduction Act, should be implemented in Europe.

The discussion then moved to follow-up questions on a range of priorities, including expanding on the Contract for Difference and faster permitting timelines, as well as discussing grid investment, supply chain problems, and opportunities for employees regarding skills and job creation.

The panelists also discussed the Marienborg Declaration, which was signed on August 30th, 2022, by eight Baltic Sea EU Member States: Denmark, Estonia, Germany, Finland, Latvia, Lithuania, Poland, and Sweden. The declaration committed these countries to achieving around 20 GW of installed capacity in offshore wind energy by 2030. To achieve this target, there is an urgent need to speed up the development of new offshore wind projects, as currently, the total offshore wind capacity on the Baltic Sea is only around 2.8 GW.

 

Baltic Power – Contribution of the 1.2 GW offshore wind project in Poland to EU’s energy transformation

Warsaw, 13^th March 2023

 

Barriers to running a business in Poland – a constant, unchanging problem

 

High taxes, legal instability, and high labour costs have been the “TOP 3” barriers to doing business according to Polish entrepreneurs since 2019. Legal instability has since then become a much more severe barrier (36% of respondents in 2019, and 51% in 2023), and entrepreneurs in Poland similarly perceive barriers to the development of business activity. Ambiguous, overcomplicated, and unfavourable provisions of the law as well as extensive administrative procedures certainly make the “TOP 3”.

“The instability of the law as a whole is a major problem, but what is even more important is the complexity of economic and tax law. For seven out of ten entrepreneurs from the trade sector, this constitutes a serious barrier to running a business,” said Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers.

According to Polish entrepreneurs, the chief reason SMEs do not employ more people is the excessive cost associated with it. Since 2019, more than 60% of Polish entrepreneurs regardless of their sector have been of this opinion. Whereas when it comes to the main obstacles to investing capital by SMEs, Polish entrepreneurs claim the following: insufficient profits – 46% of respondents, fear of capital loss – 45%, and declining demand for services and/or products provided by the company – 41%.

“These results are confirmed by the findings of our latest Busometr survey for 1Q23. The vast majority of entrepreneurs said they were reluctant to invest and found employment costs problematic,” continued Kaźmierczak.

As many as 51% of Polish entrepreneurs said the largest barrier to starting a business in Poland was the lack of free funds to begin with, 46% of them were reluctant to take responsibility for the possible failure of their company (38% in 2019), and 36% had no vision for their business operations (46% in 2020).

According to 55% of respondents, non-refundable financial aid would be one of the best incentives to start one’s own business offered by the state along with an extended period of preferential social security (54%). Entrepreneurs also answered “lowering social security contributions or other taxes” to the question about “other” driving forces that would encourage them to start their own business.

“This proves Polish entrepreneurs support our actions and demands related to, for instance, the memorandum on the package for small businesses, which included an extended period of preferential social security or reduced disability pension contribution paid by micro-enterprises. What I find most pessimistic in this study is that basically nothing has changed in years,” he concluded.

 

METHODOLOGY

In January 2023, the Union of Entrepreneurs and Employers together with Maison Research House conducted a survey entitled “Barriers to running a business in Poland”. It is a cyclical survey conducted since 2019, using the CAWI technique with a sample of 534 companies from the SME sector.

 

See more: 13.03.2023 Barriers of performing business activity in Poland

Warsaw, 9 February 2023 

 

SLIGHTLY BETTER BUSINESS SENTIMENT
 The Busometer ZPP for the first half of 2023

 

Business sentiment for the next six months has improved slightly; however, it remains significantly pessimistic. The overall value of the BUSOMETER sentiment index in companies was 36.4, while the index was 32.4 in the previous research period.

As Cezary Kaźmierczak, the President of the Union of Entrepreneurs and Employers, noticed: “Entrepreneurs are reacting cautiously to the signals coming from the market.” So far, the gloomy scenarios forecasted last year have not materialised; however, there are still no clear signs of recovery.  The result is a more optimistic mood, compared to that from the last few readings; however, it is still far from enthusiasm.”

As it was the case in the second quarter of 2022,  entrepreneurs positively assess the situation on the labour market (currently 53.1 compared to the previous 51.6).

“This confirms that the labour market in Poland is in a stable and good condition at the moment – there is low unemployment and employers are unlikely to consider downsizing” – noticed Cezary Kaźmierczak commenting on the results of the study.

The value of the sentiment index in the context of the economic situation increased quite significantly (from 27.9 to 35.1). The index can still be described as a “crisis”; however, its increase shows that some entities see prospects of an economic rebound on the horizon in the perspective of the next six months. However, the fact that as many as 58% of entrepreneurs believe that the economic situation will deteriorate further in the coming months cannot be ignored.

The only component of the index that has not increased from the previous study is the investor sentiment index (it is 24.1, as it was six months ago).

As the ZPP President clearly noticed: “There is a certain risk that we will be stuck in persistent and long-term inflation, which will prolong the period of slowdown, and the lack of prospects for recovery from that phase will block investment attempts in the corporate sector.”

METHODOLOGY AND DESCRIPTION OF THE STUDY

The Busometer ZPP – the SME Economic Sentiment Index, is an indicator showing the degree of optimism of small and medium-sized enterprises and their planned activities in the perspective of the next six months. The Busometer has been published by the Union of Entrepreneurs and Employers in cooperation with Maison Research House every six mothn since 2011.

The Busometer Index value is influenced by three components:

• the economic situation,
• the labour market (remuneration and employment),
• investment. 

The value of each component ranges from 0 to 100.  The Busometer scores below 50  indicate pessimistic business sentiment, while scores above 50 indicate optimism.

See: 9.02.2023 Busometr: Prognosis for the first half of 2023

 

Warsaw, 12 January 2023

 

Inauguration of the new project of ZPP and Totalizator Sportowy Foundation –
“Business for Ukraine Center”

 “Business for Ukraine Center” is a project of the Union of Entrepreneurs and Employers (ZPP) and the Totalizator Sportowy Foundation, which aims to support the development of Polish-Ukrainian economic relations in the difficult conditions of war and continued attacks by the Russian army on infrastructure and industrial facilities in Ukraine. The center is expected to help several hundred entrepreneurs and companies from Ukraine.

The capital’s Freedom Lounge presented an offer of a new program of the Union of Entrepreneurs and Employers (ZPP) and the Totalizator Sportowy Foundation on support for Ukrainian companies in launching investment activities in Poland and the European Union. As part of the assistance that will be provided to companies that relocate to Poland during the war and plan to expand into the European market looking for new partners, the “Business for Ukraine Center” will provide, among others, business and localization advice, assistance in finding Polish contractors or investors. The center will also provide its clients with free coworking space. In addition, there will be educational webinars on the conditions for doing business in Poland, current regulations or funding opportunities. Companies will be able to benefit from assistance in finding a location for their business. At the same time, the Center has the opportunity to provide free production space in Warsaw.

The Thursday inauguration of the Center was attended by Minister of Development and Technology of the Republic of Poland Waldemar Buda, President of the Board of Totalizator Sportowy Olgierd Cieślik, President of the Board of the Totalizator Sportowy Foundation Izabela Wyżga, President of the Board of the Union of Entrepreneurs and Employers Cezary Kaźmierczak and Bogusława Rudecka, Director of the Business for Ukraine Center at ZPP.

The “Business for Ukraine Center” program will also provide assistance and advice to Polish companies that are looking for business partners from Ukraine or are interested in participating in the reconstruction of post-war Ukraine.

“Given the large influx of companies from Ukraine – our data says that some 17,900 Ukrainian companies have been established in Poland – the program opening today fits in very well with this trend, and our first task should be to identify the problems of Ukrainian companies. As a government entity, we always pledge our support for such initiatives” , Minister Waldemar Buda said at the event.

Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers (ZPP): “I am convinced that this next project of ours will benefit both the Ukrainian and Polish entities. For obvious reasons, we are seeing a rapid increase in the interest and activity of Ukrainian companies in the Polish market. In 2022 alone, Ukrainian citizens opened some 20,000 businesses in Poland. We are currently seeing high demand for this project. These days, Ukrainian businesses are looking to Poland for what is most important – security. It is also necessary to take advantage of geographic location, similarity of mentality, proximity of cultures and the natural desire to help one’s neighbor”.

Olgierd Cieślik, President of the Board of Totalizator Sportowy: “Totalizator Sportowy has always focused on being active – not only in terms of sports or culture, but also social and business activity. I am pleased that the Totalizator Sportowy Foundation, which we have established, supports such a valuable initiative as the Business for Ukraine Center. I am convinced that thanks to the center, entrepreneurs from Ukraine will gain valuable advice and support, and companies established in Poland will allow to build lasting business relationships to the benefit of both sides.”.

In turn, Ms. Izabela Wyżga, President of the Totalizator Sportowy Foundation, the founder of the program, referred to the aspect of uniqueness of the offer: “Through the Business for Ukraine Center program, we aim to provide Ukrainian citizens with comprehensive assistance for their business in the Republic of Poland and Europe. The program is gaining uniqueness and timeliness, as it offers systemic and comprehensive organizational, administrative, legal, as well as consulting and advisory support to Ukrainian entrepreneurs. First and foremost, this initiative makes it possible to provide custom support to companies that are interested in doing business in our country. Moreover, we firmly believe that our original program will contribute to the development of business relations between Ukrainian and Polish companies, and of international dialogue between Poland and Ukraine to build a Polish-Ukrainian community based on mutual trust, cooperation and openness.”

Program Director, Bogusława Rudecka said, “Our offer is aimed at companies with an appetite for growth. In our opinion, the time has come for further development of cooperation with Ukraine and more direct and precise assistance measures tailored to the needs of specific companies. It’s quite a challenge, but we are full of energy to work and to serve Ukrainian companies who, in the face of war, do not give up and try at all costs to find a way out of the difficult situation in which they find themselves”.

The Business for Ukraine Center was established at the initiative of the Union of Entrepreneurs and Employers and the Totalizator Sportowy Foundation.

The program is financed by the Totalizator Sportowy Foundation, and operated by the Union of Entrepreneurs and Employers. The project will be implemented in January-December 2023.

The inauguration of the Business for Ukraine Center was held under the honorary patronage of the Ministry of Development and Technology.

Warsaw, 7 October 2022 

 

Cooperation with Poland and Polish business is a significant opportunity for post-war Ukraine – conclusions of the conference “Europe-Poland-Ukraine. Rebuild Together”

More than 900 people – including entrepreneurs from Poland and Ukraine, local government representatives, experts, parliamentarians and politicians, led by Prime Minister Mateusz Morawiecki – took part in the international conference “Europe-Poland-Ukraine. Rebuild Together” organised by the ZPP and WEI.

Stakeholders met at the Hilton Warsaw City hotel in the capital to discuss the opportunities for business cooperation between Poland and Ukraine, the conditions necessary for its development and the challenges the community of the two countries face.

This lively meeting has shown that one thing is clear – it is the cooperation of Poland and Ukraine that will be crucial to the process of rebuilding Kyiv. Ukrainian entrepreneurs need Polish experience in the process of economic and social transformation. Polish business, on the other hand, expects social and legal solutions in order to be truly involved in the upliftment of the neighbouring country after the war.

Poland and Ukraine – mutually beneficial cooperation

“«We, and you together, are sitting on the same branch of Moscow’s misery», said Hetman Ivan Vyhovsky at the Hadiach council in 1658. It is high time to learn from this”, said Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers, opening the conference.

“Over the centuries, through lack of communication, we have done all sorts of stupid things. Moscow benefited from this, skilfully fuelling all sorts of conflicts between us and securing an advantage over us. I hope that this period is now left behind. (…) The Poland-Ukraine alliance and cooperation, if we put our minds to it, can change the balance of power and the shape of Europe. This will give our region greater political and economic significance” – he stressed.

Prime Minister Mateusz Morawiecki also spoke about the need to cooperate for the benefit of both countries and business. “We are witnessing a geopolitical turn, a huge change. We need to build a new security architecture, the foundation on which this change is to be based”, he said.

Among the necessary elements, the head of government listed: the reconstruction of Ukraine, its accession to the EU, drawing in more countries with aspirations to join the Community, proper arming of the Polish army, as well as strengthening the defence system within NATO and bringing about «a great reorientation of energy policy»”.

Mateusz Morawiecki indicated that Poland is in favour of confiscating Russian capital and allocating it to the reconstruction of Ukraine. In turn, a new energy policy must, in his view, “consist of moving away from Russian hydrocarbons (…) through a process of sanctions, but also reducing dependence on hydrocarbons in general”.

“The Kremlin, Moscow, Russia and Putin behave like a drug dealer who gives the first doses for free in order to addict the future victim. This is exactly how Russia behaved towards Germany and Western Europe – giving them cheap gas”, he said.

Following the introductory speeches, the conference included three plenary discussions and four panel discussions on specific industries. The first part of the event discussed Poland’s role in the reconstruction of Ukraine, the importance of European cooperation and how to support the cooperation between Poland and Ukraine.

Panel “Reconstruction of Ukraine: what role Poland will play”.

The discussion on Poland’s mission in the process of rebuilding Kyiv was attended by Minister in the Chancellery of the President of the Republic of Poland Jakub Kumoch, Deputy Foreign Minister Marcin Przydacz, MP Michał Dworczyk, MP of the Verkhovna Rada of Ukraine Yelyzaveta Yasko and the President of Bank Gospodarstwa Krajowego Beata Daszyńska-Muzyczka.

The topic of their discussion was the character of Poland’s assistance to Ukraine – bilateral, direct. Poland, as the interlocutors emphasised, is an ally of Ukraine on the international stage. It is thanks to the efforts of Polish diplomacy that international aid to the struggling country has been increased. However, it was emphasised that in order for Polish business to be more active on the Ukrainian market and involved in the rebuilding of Ukraine, the administrations of both countries must create friendly and transparent rules.

Minister in the Chancellery of the President of the Republic of Poland Jakub Kumoch stressed that it is business that will rebuild Ukraine, and the role of the state is only to create optimal conditions for this and to support Ukraine on the path to military victory. “Ukraine must be rebuilt with Russian money, which is in the West, and it should be used for this very purpose,” he said.

As the minister pointed out, it is not the case that reconstruction begins only after the war. For this one is already happening during the conflict – after all, the people of the country influenced by it have to live. “Kyiv is coming back to life, as well as Kharkiv. Right now, this main process is starting”, Kumoch noted.

Ukrainian MP Yelyzaveta Yasko acknowledged that Ukraine needs Poland’s experience concerning the transition, but also help with building new infrastructure (including communications and energy) and overcoming logistical problems.

“Businesses will be involved in rebuilding Ukraine, but it is the politicians who need to create the legal framework to safely boost business in Ukraine. (…) It is a huge challenge of what to do to develop business relations between the two countries and how to overcome a number of stereotypes and problems that entrepreneurs realistically have to face,” admitted member of the Council of Ministers Michał Dworczyk.

The President of the BGK Beata Daszyńska-Muzyczka drew attention to financial issues: “there are voices about a second Marshall plan, but there is no public money, nobody wants to give grants, there are only loans, and this is how Ukraine will most likely be rebuilt”.

Ukraine’s needs and European cooperation

Ukraine’s bid to join the European Union means that the country will have to carry out system reforms and face its current issues: the oligarchy of the economy and corruption – these were the main topic discussed during the second panel.

Participants included MP Marek Rutka, President of the Employers’ Group at the European Economic and Social Committee Stefano Mallia, Director-General of the Directorate General for Neighbourhood and Enlargement Negotiations (DG NEAR) Maciej Popowski, UkraineInvest CEO Sergiy Tsivkach, Nova Post Director Inna Khomych and the Executive Director of the Ukrainian Association of Direct Sales Nadiya Bedrychuk.

The debaters discussed together, among other things, how to finance the reconstruction of Ukraine.

“It is necessary to find a new formula for guarantees and long-term loans, a mix of grants and loans,” said Marcin Popowski. The expert recalled that at least EUR 350 billion is needed for the reconstruction of Ukraine – so far the EU has allocated 19 billion. In his opinion, the process of rebuilding Ukraine runs in parallel with the announcement of changes resulting from the EU accession process. These reforms will improve the judiciary, including the fight against corruption.

“Ukraine is changing”, asserted UkraineInvest CEO Sergiy Tsivkach. “At the beginning of the war, about 80 % of Ukrainian companies stopped operating, now about 90 % are operating. And the administration supports business even during the war”, he said.

“When a country is attacked, we protect not only our borders, but also our business”, he said. Tsivkach mentioned that among the problems facing Ukraine were the relocation of businesses and the promotion of new investments – among those coming from Russia.

“I encourage Polish and global investors to consider Ukraine, because the opportunities are huge. Nowhere will you get such a return on investment as you currently do here. What do we need? Cooperation with foreign partners and especially – technology”, he added.

Reconstruction of Ukraine: how to support Polish-Ukrainian business cooperation

The last panel focused on how to improve the interaction of entrepreneurs from neighbouring countries. The Minister of Economic Development and Technology Waldemar Buda, Member of the Ukrainian Parliament Halyna Yanchenko, Executive Director of the Union of Ukrainian Entrepreneurs (SUP) Kateryna Glazkova, President of the Polish Development Fund Paweł Borys, PGNiG’s advisor for cooperation with Ukraine Ireneusz Derek, President of the Ukrainian Chamber of Commerce and Industry Gennadiy Chyzhykov and Member of the PKN ORLEN S.A. Management Board Jan Szewczak discussed what activities and processes could intensify business activity between Poland and Ukraine.

According to the discussion, Polish companies are interested in doing business in Ukraine. At the moment, 1,200 Polish entrepreneurs have already reported their readiness to rebuild Ukraine to the Polish Investment and Trade Agency. However, representatives of these entities are concerned about the protracted procedures in Ukraine and the corruption still present in Kyiv. Therefore, it is important that Ukraine now identifies not only its needs, but also the development model that is most beneficial to it. Foreign investors and other countries can help Ukraine, but the country itself needs to consistently solve the problems that can be obstacles to the investment climate.

Minister Waldemar Buda said that although it is not yet clear in which formula Ukraine will be rebuilt, due to its geographical proximity, but also good relations between the countries, Poland will be its serious ally in this process. “Ukraine faces a great opportunity because foreign financial capital will demand standards […]. This is a kind of catalyst for change from the point of view of public procurement, transparency, accessibility to public information, clarity of processes that take place in the economy”, said the head of the ministry.

According to Paweł Borys, President of the Polish Development Fund, Ukraine’s aspirations to join the EU will also naturally force reforms that will increase its economic credibility and make it a friendlier market for Polish entrepreneurs. “It is extremely important to deoligarchise the economy and fight corruption. It is also necessary to create good conditions for the development of entrepreneurship, especially for companies in the SME sector”, Borys said.

In turn, Ireneusz Derek stressed that PGNiG hopes to drill the first gas wells in western Ukraine later this year. He recalled that the entity had bought a Ukrainian company for this purpose, together with the relevant licence.

Entrepreneurs present on the Ukrainian market also drew attention to problems concerning border crossings. In their opinion, it is necessary to shorten border check times, and it might be worth returning to the solution adopted for the European Football Championship years ago – i.e. a joint Polish-Ukrainian check instead of two separate ones.

Industry discussions

The second part of the conference was devoted to discussions on specific industries. Five sectors were discussed – agriculture and food, defence and arms, transport and logistics, IT and new technologies, and urban and regional reconstruction. You will find separate coverage of these soon on our website and social media – we encourage you to follow them.

The conference concluded with closing speeches. The event’s closing banquet, which was a more relaxed occasion for networking and business, was attended by President of the Warsaw Enterprise Institute Tomasz Wróblewski, Vice President of the Union of Entrepreneurs and Employers Marcin Nowacki, and President of the Employers’ Group at the European Economic and Social Committee Stefano Mallia.

The evening featured a performance by this year’s Eurovision winner, the Kalush Orchestra. It was an energetic, sincere and enthusiastically received conclusion of the entire conference. Their music, based on Ukrainian tradition and drawing on Kyiv folklore, got the crowd dancing. The business community, after listening to many hours of expert discussions on the future of Ukraine and Polish-Ukrainian cooperation, got up from their tables and, by singing and having a great time, showed that it is cooperation and ordinary neighbourly friendliness that are the guarantors of future success.

The conference is one of the elements of the ZPP programme, which aims to establish and strengthen relations between European, Polish and Ukrainian entrepreneurs and to prepare a framework for cooperation in the future reconstruction of the Ukrainian state and economy.

 

Organisers: Union of Entrepreneurs and Employers and Warsaw Enterprise Institute Foundation

Honorary Patronage: Chancellery of the Prime Minister, Ministry of State Assets

Main Partner: PKN ORLEN

Partners: Agencja Rozwoju Przemysłu S.A., Bank Gospodarstwa Krajowego, Polish Development Fund, Totalizator Sportowy

This project is co-financed by the state budget as part of a public task.

Brussels, 26 October 2022 

 

ZPP GRANTS AWARDS TO MEPs ON THE OCCASION OF 5TH ANNIVERSARY OF
ITS ACTIVITY IN BRUSSELS

 

In September 2017, the Union of Entrepreneurs and Employers (ZPP) established a representative office in Brussels. Thanks to its presence, the Union can effectively represent the interests of Polish companies and maintain relations with the most important institutions of the European Union.

The beginning of the regulatory activity of the ZPP office in Brussels was the posting of workers in road transport. Over the next years, the ZPP was involved in regulatory works on platforms, copyrights, digital single market, digitisation and energy policy in the Central European Region, as well as the circular economy. The ZPP has also organised 23 events at the European Parliament. During the Covid-19 pandemic, the Union worked with other organisations on support programmes for small and medium-sized enterprises, conducted debates on e-commerce and launched on-line meetings with Members of the European Parliament.  The ZPP has been represented in the European Economic and Social Committee for 2 years.

During 5 years of its operation, the ZPP has become a recognisable partner for the EU institutions, building professional relations with European partners. The office has also established cooperation with major European organisations and think tanks. It regularly publishes commentaries, positions and opinions, which can be found in the fortnightly European newsletter.

On Wednesday, 26 October 2022, during the 5th anniversary celebrations, the ZPP granted award to the Members of the European Parliament for their ongoing support in Brussels and promoting the demands of Polish entrepreneurs.

The ZPP special awards went to:

PROF. ZDZISŁAW KRASNODĘBSKI, VICE-CHAIRMAN OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY, MEMBER OF THE EUROPEAN PARLIAMENT – for the continuous support of the ZPP from the beginning of its journey in Brussels and for promoting the demands of Polish entrepreneurs, from the posting of workers in road transport through the involvement in key climate and energy issues.

IVAN ŠTEFANEC, MEMBER OF THE EUROPEAN PARLIAMENT – for supporting micro, small and medium-sized enterprises, their opportunities and challenges, for helping the beating heart of Europe continue to work for the economy in all Member States.

KOSMA ZŁOTOWSKI, MEMBER OF THE EUROPEAN PARLIAMENT – for supporting Polish entrepreneurs at every step of their way and on most of the key dossiers, from posting employees in road transport, supporting Polish pharmaceutical manufacturers, to working on the prospects of entrepreneurs in the Digital Services Act, as well as the use of Artificial Intelligence.

HENNA VIRKKUNEN, MEMBER OF THE EUROPEAN PARLIAMENT – for ongoing support for micro, small and medium-sized enterprises, reaching out to them at every stage of the decision-making process to ensure their good representation, from posting workers in road transport to the involvement in digital policy.