Brussels, 19 March 2025

     

 Future of EU Health Policies: Balancing Demands, Resources and Innovation: Roundtable Summary 

 

ZPP – Union of Entrepreneurs and Employers together with European Enterprise Alliance & SME Connect co-organized an event on Future of EU Health Policies: Balancing Demands, Resources and Innovation, 19 March 2025, hosted by MEP Adam Jarubas, Chair of the Sant Committee, in the European Parliament in Brussels under the patronage of the Polish Presidency. Experts and Brussels politicians discussed how the evidence-based approach could improve access to medicines in Europe and reduce the burden related to key health challenges, including processed food and tobacco policies. 

With healthcare systems across Europe under increasing pressure, this event brought together policymakers, healthcare professionals, researchers, and industry leaders to shape forward-thinking, evidence-based strategies. The panel featured distinguished experts including Milka Sokolović, Director General at European Public Health Alliance (EPHA); Dominik Dziurda, President of Formedis HTA; Grzegorz Rychwalski, Vice President of Medicines For Poland, Vice-Chair of Business at OECD Health Committee, Advisor to the EESC, Member of the Critical Medicines Alliance DG HERA; Marcin Nowacki, Vice President of Union of Entrepreneurs and Employers (ZPP), EESC Member, Employers’ Group; Seyide Direk, Policy Analyst at the European Enterprise Alliance, and Horst Heitz, Chair of the Steering Committee of SME Connect. The discussion was moderated by Agata Boutanos, Director of the Representation to the European Union of the Union of Entrepreneurs and Employers (ZPP). The event focused on developing adaptable regulatory frameworks that promote sustainability and resilience while driving competitiveness and innovation in the healthcare sector.

ADAM JARUBAS MEP, Member of the European Parliament (EPP, Poland) and Vice-Chair of the ENVI Committee, actively engaged in shaping EU health and pharmaceutical policies, highlighted the increasing pressures on healthcare infrastructure, citing factors such as an aging population, the rise in chronic diseases, and the escalating costs of medical innovation. He stressed the need for a forward-looking strategy that ensures a balance between public health priorities, economic sustainability, and technological progress. Mr. Jarubas acknowledged the commitments made by the European Commission in the early stages of the new legislative term, expressing optimism that health policy would be a priority. He pointed out that, in response to these challenges, the European Parliament had established a new permanent legislative committee dedicated to public health. He outlined key discussion points, including ensuring equitable access to quality healthcare across Europe, enhancing cross-border collaboration in research and crisis preparedness, fostering innovation and digital transformation while maintaining a patient-centered regulatory framework, and exploring sustainable funding models through public-private partnerships. Mr. Jarubas reaffirmed the European Parliament’s commitment to advancing policies that prioritize patients while supporting a competitive and sustainable healthcare sector. However, he emphasized that addressing these challenges required collaboration among policymakers, industry leaders, healthcare professionals, and researchers.

“The European Parliament has established a new permanent legislative committee dedicated to public health, reflecting our commitment to equitable access to high-quality healthcare, strengthened cross-border collaboration, and sustainable funding models. Advancing patient-centered policies while fostering innovation and competitiveness requires collaboration — not just among policymakers, but also with industry leaders, healthcare professionals, and researchers. Only together can we shape a stronger, healthier Europe.” — ADAM JARUBAS MEP

MILKA SOKOLOVIĆ, Director General of the European Public Health Alliance (EPHA), public health advocate and expert on health promotion, prevention, and sustainable health systems, noted that while many COVID-19 pandemic lessons have been forgotten, it is crucial to integrate them into current policy actions to avoid relearning them at a high cost. She highlighted antimicrobial resistance (AMR) as a major yet underrepresented threat to healthcare systems, urging MEPs to prioritize AMR action. She encouraged policymakers to join the AMR Interest Group to help combat this challenge. On balancing healthcare demands with limited resources, Ms. Sokolović emphasized prevention as the most cost-effective solution, calling for greater investment in health promotion and disease prevention to reduce long-term healthcare burdens. Regarding obesity and public health, she stressed the need for health-promoting environments where the healthiest options are the easiest and cheapest. She urged stronger regulation against vested interests in the food industry and reminded policymakers of their responsibility to put public health above commercial interests. For early cancer detection, she highlighted the importance of universal screening programs, especially for marginalized populations, and called for better outreach strategies to ensure access to early diagnosis and treatment. Addressing public health policies, she warned against blaming individuals for “lifestyle-related diseases” and stressed the need for health considerations across all policy areas, particularly in agriculture and food policies. On health system sustainability, she underscored the impact of climate change on public health and the need for resilient healthcare systems to handle extreme weather events. She also stressed the importance of securing medicine supply chains through ongoing EU initiatives like the Critical Medicines Act. Lastly, she pointed to the healthcare workforce crisis, emphasizing that beyond wages, working conditions, professional recognition, and dignity must be improved to make the sector more attractive. She called for a renewed commitment to healthcare workers, acknowledging their sacrifices during the pandemic. She concluded by urging policymakers to act on these pressing health issues to build a stronger, more resilient EU healthcare system.

DOMINIK DZIURDA, health care expert in the field of pharmacoeconomics, reimbursement and health technology assessment (HTA), president of FORMEDIS HTA, co-author of the report “A systematic review of the safety profile of selected recreational nicotine delivery method” which analyses available research on the risk profile of new nicotine products, giving the first wide systematic approach to be used by decision makers during the revision of the tobacco directive, emphasized that health policies must be based on facts, undergo thorough assessments, and include comprehensive stakeholder consultations. He stressed that policies should not be imposed but shaped through broad engagement, citing the Pharmaceutical Strategy for Europe as an example of successful collaboration. He highlighted the importance of evidence-based policymaking, warning that without the right tools, discussions risk turning into power struggles rather than constructive exchanges. Drawing from his experience in Poland’s national health reforms, he pointed to systematic literature reviews and simulation modeling as two essential tools for effective policy development. Mr. Dziurda explained that systematic reviews help filter reliable evidence from misinformation, ensuring policies are grounded in research. However, as traditional studies often focus on short-term outcomes, he argued that simulation modeling is essential for protecting long-term impacts. As an example, he used the tobacco policies, which are part of the European Beating Cancer Plan, arguing that long-term statistical trends that are already available can provide simulation models to look at different policy options to reduce the burden related to tobacco.  Hence, during the meeting, ZPP also provided a summary of his report. Concluding, Mr. Dziurda strongly encouraged a wider application of evidence-based tools, emphasizing that policies built on data rather than assumptions lead to smarter, more effective, and life-saving healthcare solutions.

“Health policies must be based on facts, not assumptions, and undergo thorough assessment to anticipate potential consequences. While this may seem obvious, it remains a fundamental principle. Grounding input data in systematic reviews and utilizing simulation modeling to test the consequences of implementation can transform policy development into a truly evidence-driven process. Equally essential is comprehensive stakeholder consultation—because health policies impact patients, professionals, and industry alike, they must be shaped with their input to ensure balanced and effective solutions.”

— DOMINIK DZIURDA 

GRZEGORZ RYCHWALSKI, Vice President of the Polish Union of Employers in the Pharmaceutical Industry (PZPPF), actively engaged in European-level pharmaceutical policy debates with a focus on industrial resilience and critical medicines, highlighted the Critical Medicines Act (CMA) as a key topic in pharmaceutical policy discussions, not only within the European Union but also globally, as countries strive to build resilient and independent medicine manufacturing ecosystems. He noted that while the Pharmaceutical Strategy for Europe had been in development for many years, the European Commission’s recent presentation of the CMA marked a major turning point in discussions. He acknowledged concerns about the lack of dedicated funding for pharmaceutical manufacturing but welcomed the subcommittee’s support for including pharmaceutical manufacturing in the next Multiannual Financial Framework (MFF). This, he argued, was a positive sign that the issue would remain central in legislative discussions within the Council and the European Parliament.
Mr. Rychwalski referenced previous discussions with health ministers and MEP Adam Jarubas, emphasizing that data should guide political interventions. He pointed to the European Parliament Research Service report, which detailed Europe’s dependency on active pharmaceutical ingredients (APIs) and critical medicines, as well as the European Economic and Social Committee’s (EESC) opinion, both of which underscored the urgent need for action. He warned that low-margin essential medicines, such as statins, were increasingly being produced outside Europe due to cost pressures, regulatory burdens, and environmental policies. While EU policies aim to ensure competitiveness and innovation, he argued that initiatives such as the Green Deal were creating additional obstacles for European pharmaceutical manufacturing. He pointed out contradictions in EU policymaking, where the European Commission encourages local medicine production while simultaneously imposing costly environmental regulations, such as those related to the Urban Wastewater Treatment Directive. He called for a balanced approach, ensuring both pharmaceutical independence and environmental responsibility. Concluding, Mr. Rychwalski urged MEPs to reassess regulatory frameworks to support European medicine production while maintaining sustainability goals. He stressed the importance of data-driven policymaking and called for a coordinated approach to safeguard access to critical medicines for European patients.

TOMISLAV SOKOL MEP, Member of the European Parliament (EPP, Croatia), Rapporteur on the European Health Data Space regulation and active contributor to EU health legislative reforms, emphasized that health policy remains primarily a national competence, but the EU has a crucial role in regulating medicines and addressing challenges that individual Member States cannot solve alone, such as dependency on third countries for generic medicines and critical pharmaceutical ingredients. He welcomed the Critical Medicines Act (CMA) as a step in the right direction, particularly its provisions on common procurement, which would allow voluntary joint purchasing of medicines, giving the EU a stronger bargaining position and ensuring better prices and security of supply. Mr. Sokol also highlighted the importance of state aid in supporting pharmaceutical manufacturing within Europe, arguing that legal frameworks should be more flexible to encourage investment. He stressed the need for one-stop shops to simplify bureaucratic procedures for strategic healthcare projects. However, he noted that stockpiling measures were insufficient in the current CMA proposal and called for stronger European coordination on reserves to prevent shortages during health crises. Discussing pharmaceutical legislation, he outlined the ongoing negotiations, emphasizing the challenge of balancing innovation, market exclusivity, and patient access. He pointed out significant disparities in the availability of medicines across EU countries, particularly affecting Eastern European Member States, and argued for reforms to ensure faster access to generic and innovative medicines. He supported mechanisms such as the Bolar exemption, which allows the development of generic medicines before exclusivity periods expire, ensuring they are ready for the market immediately. Mr. Sokol also addressed the European Health Data Space regulation, which had been formally adopted but required a phased implementation over four to six years. He stressed the need for investment in digital infrastructure, training of healthcare professionals, and patient awareness to ensure a smooth transition. Finally, he emphasized the urgent need to defend and expand the EU health budget, arguing that a dedicated health program must be preserved to prevent healthcare funding from being diluted into broader EU programs. He urged both the European Parliament and national governments to fight for this funding, as the budget decisions would ultimately be made jointly by Parliament and the Council. Sokol concluded by calling for stronger EU coordination and investment to enhance medicine production, digital infrastructure, and healthcare access, ensuring that Europe remains competitive while prioritizing patient needs and public health security.

MARCIN NOWACKI, Vice President of the Union of Entrepreneurs and Employers (ZPP), expert in digital health, representing business perspectives in regulatory discussions at EU level, acknowledged that regulation in the healthcare sector is essential for patient safety, product quality, and market stability, but warned that excessive complexity can slow innovation, increase costs, and limit patient access to life-saving treatments. He stressed the importance of striking a balance between a stable legal framework and fostering innovation among market players. He pointed to long approval processes for new medicines and medical devices— often exceeding 10 years and costing over €1 billion—as a major barrier, particularly for smaller European companies. To address this, he advocated for a risk-based, data-driven regulatory approach, differentiating between high-risk and low-risk innovations to accelerate approvals while maintaining patient safety. Mr. Nowacki also highlighted fragmentation across EU Member States as a significant challenge, particularly in health data sharing. Reflecting on his experience in radiology and teleradiology, he noted that despite advancements, cross-border telemedicine remains nearly nonexistent due to medical data restrictions. He stressed that harmonizing data access across Europe could improve healthcare quality, allowing specialists to provide high-quality diagnoses regardless of location. He further emphasized that health data access issues exist not only at the EU level but also within Member States, affecting both public and private sector cooperation. Without better infrastructure for data sharing, telemedicine and digital health solutions would remain underdeveloped. Lastly, Mr. Nowacki called for a greater focus on health education and the promotion of healthy habits. He cautioned against demonizing specific food products and instead advocated for educational campaigns on balanced diets and healthy lifestyles. He suggested that self-regulation across industries, based on data-driven insights, could help address public health concerns without relying solely on restrictive regulations. Concluding, he urged policymakers to foster innovation-friendly regulations, improve data accessibility for healthcare providers, and promote health education, ensuring a more efficient and effective healthcare system across Europe.

“For smaller companies, the high threshold to enter the market creates limitations on growth and innovation, even for large regional European firms. To address this, we must shift towards risk-based and data-driven regulation—differentiating between high-risk and low-risk innovations to make market entry quicker and more cost-effective while ensuring patient safety.” — MARCIN NOWACKI

SEYIDE DIREK, Policy Analyst at the European Enterprise Alliance and expert on EU health policy, with a background in economics, law & global studies. The author of the white paper “What is Next for EU Health Policy”, which explores the future of European healthcare, focusing on regulatory reform, innovation, and resilience. She summarized the key systemic challenges in EU healthcare, highlighting demographic shifts, rising diseases, regulatory burdens, and supply chain vulnerabilities. She noted that over 20% of EU citizens are now over 65, a figure expected to grow significantly, increasing pressure on healthcare capacity and public budgets. The prevalence of chronic diseases, including diabetes, further strains healthcare systems and social security. She emphasized the need for balanced regulation, acknowledging the EU’s role in ensuring patient safety and recognizing concerns about administrative burdens in pharmaceuticals and medical devices. She stressed the importance of maintaining EU competitiveness while safeguarding healthcare access. Ms. Direk also pointed out Europe’s heavy reliance on China and India for 80% of active pharmaceutical ingredients (APIs), making supply chain resilience a top priority. She conveyed that MEPs had voiced the need for better preparedness for future health crises, advocating for greater self-sufficiency and coordination across Member States. Another major issue she addressed was healthcare workforce shortages, exacerbated by an aging workforce. She called for greater investment in medical education, staff retention strategies, and cross-border recognition of healthcare qualifications to ensure sustainability. She also discussed the importance of fostering a competitive EU health industry and supporting pharmaceutical R&D and biotech innovation through a favorable regulatory environment. Additionally, mental health and the impact of social media were highlighted as growing concerns, particularly among young people. Ms. Direk cited research indicating that one in six Europeans experiences high levels of anxiety or depression, with social media being linked to increased psychological distress. She called for stronger digital well-being policies to address these risks.

In conclusion, Ms. Direk outlined key recommendations, including stronger evidence-based policymaking, comprehensive impact assessments, and healthcare resilience improvements, particularly reducing dependence on non-EU suppliers.

 

Press release: Future of EU Health Policies: Balancing Demands, Resources and Innovation: Roundtable Summary

Warsaw, 9 December 2024 

Joint white paper on the future of trade relations between the European Union and Ukraine

 

On December 4^th the Union of Entrepreneurs and Employers (ZPP) of Poland and the Federation of Employers of Ukraine (FEU) have released a joint white paper on the future of trade relations between the European Union and Ukraine.

The white paper outlines a strategic vision of the role of Polish-Ukrainian economic relations, as well as key trade issues between Ukraine and the European Union.

In particular, it focuses on Autonomous Trade Measures (ATMs) and their likely expiration in 2025. The authors have emphasized that negotiations around ATMs extension and Deep and Comprehensive Free Trade Area (DCFTA) amendments, should begin immediately and expressed hope for an active role of Poland and Denmark during their presidencies of the Council of the EU.

As the EU approaches a pivotal decision regarding ATMs and the DCFTA, the white paper offers actionable recommendations to ensure sustained growth and stability in trade relations. We have identified two potential paths: the extension of ATMs with enhanced safeguards; and a selective expiration of ATMs coupled with strategic DCFTA amendments to support critical Ukrainian exports, the authors outline in the white paper.

In the first scenario the white paper advocates for an extension of ATMs with Enhanced Safeguards. The safeguards introduced in June 2024 ATMs extension have largely proven effective at regulating trade flows and minimizing disruption to EU producers. The possible effects on price stability and resilience of EU producers are further discussed in the white paper.

The second scenario includes a selective ATMs expiration, combined with DCFTA amendments. The authors warn that a sudden elimination of ATMs without a transitional framework could increase expenses and reduce profit margins (…), while restricted access to the European market could deter foreign investment in Ukraine. Should the ATMs not be renewed, the white paper deems the DCFTA amendments vital to ensure continued European support for Ukraine and highlights important sectoral particularities regarding the amendments.

Lastly, the authors suggest increasing investment in Transport and Rail Infrastructure for Strategic Expansion, implementing a Real-Time Trade Monitoring and Adjustment System, strengthening Agricultural Collaboration and Technology transfer. The ZPP and FUE also proposed engaging Leading Ukrainian and Polish Social partners in trade discussions, emphasized the importance of mediation by business associations, and offered their services to the governments of Ukraine and Poland. The initiatives would provide further support for Ukraine and increase regional competitiveness and resilience.

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/

 

See more: White Paper: The Future of EU-Ukraine Trade Relations

18.11.2024, Warsaw

BelTech Going Global 2.0

The #BelTechGlobal, the largest offline conference for Belarusian technology companies abroad, was held on Saturday, November 16, at the Cambridge Innovation Center in Warsaw, Poland. The event brought together more than 300 Belarusians becoming a key platform for the revival of the Belarusian technology ecosystem, which has been fragmented due to mass migration.

The conference was held entirely in English, with one presentation in Belarusian.

The event was opened by Dmitry Danilchuk – head of ZPP Belarus Business Center and Kuba Binkowski – Board member and director of the Law and Legislation Department of the Union of Entrepreneurs and Employers.

The conference included the following panels and discussions:

1. Foster Revival and Growth: Promote the revival, formation, and establishment of a new Belarusian technological and innovation ecosystem.
2. Strengthen Business Partnerships: Recreate and strengthen business partnerships among representatives of Belarusian tech businesses
3. Facilitate International Integration: Support the integration of Belarusian companies into global ecosystems, helping them establish sustainable international connections.
4. Panel discussion: IT outsourcing: transformation in times of global disruptions
5. Panel discussion: Hardware companies: supplier management and the arrival of the AI era
6. Panel discussion: B2B companies: navigating shaped needs of Global Belarusian IT firms
7. Keynote speech: Building a unicorn: What successful founders do differently
8. Keynote speech: How to sell a company with Belarusian roots: real-life cases
9. Panel discussion: Investments during venture winter: surviving or thriving
10. Pitch session: 7 raising Belarusian startups
11. Panel discussion: CSR and impact tech – this discussion was attended by Agata Boutanos. Director Brussels Office Union of Entrepreneurs and Employers
12. Speech: Belarus as a forge of high-tech businesses: Does the national high-tech sector have a future?
13. Speech: Top – 10 Belarusian startups in 2024

General partners of the event were SMAR Global, Melnichek Investments, FBA (Freedom Business Area), EXANTE, Partners, ALMA Agency and a partner of the event was ALMA Agency.

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ZPP | Belarus Business Center is a premier initiative launched by the Polish Union of Entrepreneurs and Employers (ZPP). Our project delivers comprehensive informational support, expert consultations, and legal advisory services to Belarusian companies expanding or relocating to Poland. The mission of the Business Center is to empower the Belarusian business community in Poland, throughout Europe, and on the global stage.

14/11/2024, Brussels

From Potential to Progress: Strengthening the CEE Region’s Digital Economy

 

On Thursday, 14 November 2024, the Union of Entrepreneurs and Employers (ZPP) in partnership with SME Connect held a working breakfast titled “From Potential to Progress: Strengthening the CEE Region’s Digital Economy” at the European Parliament in Brussels, Belgium. The welcome was delivered by Agata Boutanos, Director of the Representation to the European Union of ZPP, followed by opening remarks from the host of the event, Ľubica Karvašová, Member of the European Parliament and Vice-Chair of the Committee on Regional Development. The overview of findings from the report, “EU Digital Single Market: A Catalyst for the Development of Companies in the CEE Region,” was presented by Lusyne Kesziszjan, Public Affairs Manager at the European Enterprise Alliance. The keynote was given by Dariusz Standerski, Minister of Digitalisation of Poland. The panel discussion featured Kamila Gasiuk-Pihowicz, MEP and Vice-Chair of the Committee on the Internal Market and Consumer Protection; Rafal Kaminski, Advisor to MEP Kosma Złotowski; Jakub Bińkowski, Board Member at ZPP; and Anna Mazur, EU Regulatory Affairs Manager at Allegro. The discussion was moderated by Dr. Horst Heitz, Chair of the Steering Committee of SME Connect.

 

Agata Boutanos, Director of the Representation to the European Union of ZPP, welcomed participants and introduced the event’s focus on advancing the digital economy in the CEE region. She emphasized the importance of collaboration within the Digital Single Market (DSM) framework to unlock the region’s full potential and drive sustainable growth in the digital sector.

Lusyne Kesziszjan presented findings from the report, “EU Digital Single Market: A Catalyst for CEE Region Companies’ Growth,” which highlighted the benefits of digital integration for CEE SMEs. With e-commerce projected to reach significant retail shares in Poland and the Czech Republic by 2026, she emphasized that despite high cross-border delivery costs and competition from subsidized platforms, the DSM offers critical expansion pathways for regional businesses.

Ľubica Karvašová, Member of the European Parliament & Vice-Chair of the Committee on Regional Development, provided context for the meeting, connecting recent Commission hearings with aspirations for strategic initiatives in the incoming agenda. She highlighted the Digital Single Market’s (DSM) role in the EU’s digital transformation, noting advancements within Central and Eastern Europe (CEE) yet emphasizing the need for stricter regulatory enforcement by Member States. Karvašová’s recommendations focused on bolstering educational tools and infrastructure as essential foundations for sustained DSM progress.

Dariusz Standerski, Secretary of State, Ministry of Digital Affairs in Poland,linked DSM developments with the priorities of the upcoming Polish Presidency of the EU Council. He emphasized the focus on enhancing digital security and accessibility across the DSM, aiming to lay the groundwork for a resilient and inclusive digital Europe by embracing technologies like artificial intelligence and strengthening cybersecurity. Standerski highlighted the role of AI in driving innovation and efficiency within the DSM, alongside an agenda centered on digitalization and cybersecurity. He also underscored ongoing efforts to engage citizens and SMEs with practical digital tools, building a solid foundation for DSM growth while safeguarding the digital ecosystem against external threats.

Kamila Gasiuk-Pihowicz, MEP and Vice-Chair of the Committee on the Internal Market and Consumer Protection, projected DSM’s impact on the EU economy by 2026, stressing the need for robust, inclusive legislation. She spotlighted Poland’s e-commerce growth, particularly Allegro’s success, as a testament to DSM’s value. Gasiuk-Pihowicz advocated for sustained investment in digital education and tools to support SMEs and ensure a competitive DSM landscape.

Rafal Kaminski, Advisor to MEP Kosma Złotowski, emphasized the need for effective implementation of the Digital Single Market (DSM) rather than adding new regulations. Highlighting the challenges SMEs face in keeping up with complex digital rules, he advocated for consistent regulation across the EU and increased funding for SME training, stressing that SMEs are vital to the economy and must be prioritized in the DSM’s future.

Jakub Bińkowski, Board Member and the Director of the Law and Legislation Department, Union of Entrepreneurs and Employers, advocated for a cohesive regulatory approach across the EU to reduce compliance costs for businesses operating in multiple countries. He called for a level playing field, particularly with the rise of subsidized Chinese platforms in the market, emphasizing ethical concerns, cybersecurity, and the need for transparent data management. Bińkowski urged organizations to carefully consider partnerships, stressing ZPP’s responsibility to preserve European standards and security.

Anna Mazur, EU Regulatory Affairs Manager at Allegro, addressed Allegro’s leading role in Poland’s e-commerce sector, emphasizing the importance of developing DSM while protecting regional players from unfair competition. She stressed the necessity of implementing existing regulations across Member States to prevent exclusion due to subsidized non-EU competition.

See more: From Potential to Progress: Strengthening the CEE Region’s Digital Economy

 

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

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

 

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.

 

Warsaw, 23 April 2024

Conference ‘European Parliament Elections 2024: Challenges for Digital Democracy in the CEE Region’

On 22 April, the SGH Warsaw School of Economics hosted the conference ‘European Parliament Elections 2024: Challenges for Digital Democracy in the CEE Region’, partnered by the Union of Entrepreneurs and Employers (ZPP).

Present as a guest of honour was Secretary of State at the Ministry of Digital Affairs, Dariusz Standerski. The meeting was opened by the co-host of the event Piotr Wachowiak, PhD, lecturer and rector of the SGH Warsaw School of Economics. In a discussion moderated by Zosia Wanat, Senior CEE Correspondent from Sifted, the ZPP was represented by Paulina Szkoła, Director of the ZPP Digital Forum; other members of the panel were:

– Jan Jęcz, digital economy analyst, Polityka Insight;

– Mateusz Łabuz, Technische Universität Chemnitz; and

– Aleksandra Wójtowicz, Senior Analyst, NASK.

During the meeting, the report ‘Things to Watch For in European Parliament Elections in 2024’was presented, which you are warmly encouraged to read!

The event was organised by the CEE Digital Democracy Watch.

Warsaw, 25 April, 2024

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

 

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

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

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

Confident in their decision to set up a business

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

Highly educated

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

Parents of children in state schools and kindergartens

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

No spectacular earnings

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

No spectacular property or luxurious cars

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

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

But with savings

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

Content with life despite difficulties

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

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

Expert comments

Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers

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

Prof. Dominika Maison, Maison & Partners.

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

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

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

Ignacy Morawski, Chief Economist, Puls Biznesu

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

About the survey

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

Lifestyle and related expenses

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

Assessment of the material situation

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

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

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

Obstacles and desire to continue running own business – summary

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

 

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

Brussels, 11 April 2024

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

 

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

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

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

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

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

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

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

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

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

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

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

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