Growing interest

Michał Pakulniewicz: What is the overall state of the economic relations between Finland and Poland?

Markku Kuismin: Trade between the two countries has been stable in its growth for the last three years. However, this year the growth rate has increased by about 15 percent on both sides. Last year Finnish exports to Poland came to around EUR 900 [zł.3,515] million, while Polish exports to Finland amounted to approximately EUR 550 [zł.2,148] million. This year I expect our exports to reach EUR 1 [zł.3.9] billion and Polish exports to grow to about EUR 600 [zł.2,343] million.

What has been responsible for this growth?

The accession to the EU had some effect on the increase in bilateral trade, but the main reason for this growth is the investment of Patria [Finland's state-controlled defense group], which got a big deal to sell armored vehicles to Poland. This year the deal came into effect and 30 vehicles were bought by Poland. The Patria offset deal benefited Polish companies as well, who were able to export their products to Finland. But Poland's entrance to the EU really boosted the export of Polish food and food processed product to Finland. This replaced the coal imports, which were the traditional imports from Poland, but which has been losing importance in recent years.

What about Finnish investments in Poland?

Another effect of Poland's accession to the EU is the growing interest of Finnish small and medium-sized companies in investing in Poland. We see several companies developing software products here, some in the environmental sectors as well as consulting firms. It is worth mentioning that Finnish companies investing in Poland are small and therefore they are not listed in many official statistics and rankings, for example in the PAIiIZ ranking. Finnish companies invest mainly in the financial intermediation sector, food and food processing, paper and packaging as well as mining sectors.

Lately there have been rumors that the Finnish might lift restrictions on labor from the new EU member states. Is there a chance that these restrictions will be lifted soon?

Yes, this now seems to be the government's policy. Everybody seems to understand that labor from the new member states is not a threat. Even now contract workers, mainly welders, skilled metal and construction workers, are allowed to work in Finland. I know of four Finnish  companies operating in Poland who recruit workers to go to Finland. There are some restrictions and limitations though. For example, you cannot work for more than six months on one project. Labor unions, which were the main opposition to the opening of the market, are now realizing the shortage of skilled craftsmen in Finland, and they see that they are not able to control the contract workers. That's why Finland is considering opening the market, when the transition period expires in spring of 2006.

Interviewed by

Michał Pakulniewicz