The state of the Union
Last spring, the doomsayers were out in biblical proportions. Euro-skeptics warned the whole Polish nation that after making a deal with the EU, a plague of subsidized European food would flood the market, Polish land would be bought out, prices would rise to the heavens and, at the end of the day, Polish citizens would be the ones losing out.
This campaign dredged up memories of the communist era, and people started buying up basic food goods to prepare themselves for the coming storm. In April, supermarkets' turnover jumped by 30 percent on the previous year.
Now that the storm has passed, and left little or no destruction in its wake, accession fever has subsided, and the reality can be contrasted with the speculation.
Public opinion
Although two thirds of Poles declare that nothing in their lives has changed since accession, and one fifth say their living standard has dropped, overall 51 percent of the country is happy that Poland is a part of the EU. Even if personally they did not feel things had changed for the better, many strongly believe that they will in the future. According to the survey, conducted by the Institute of Economic Development at the Warsaw School of Economics, the amount of "farming families looking fearfully at the future" dropped from 19 percent in July 2003 to 13 percent in July this year. Simultaneously, the number of families looking hopefully to the future increased from 14 to 21.5 percent. Farmers are also starting to invest in new machinery and general household modernization and enlargement. Agriculture, after seven years of decline, is becoming a 'well-oiled wheel' in the Polish economy.
Economy
In May 2004, the price of certain goods increased more than experts anticipated, bringing inflation to 4.6 percent, and the media out in a rash. There was a six percent increase in bread prices, an 8.9 percent jump in pork and a 7.3 percent hike in cigarette prices. Energy costs, connected to the international situation rather than the EU, also rose, increasing the overall Consumer Price Index (CPI).
Inflation was therefore a result of a more multifaceted situation, namely: the increased dynamics of the Polish economy (due to a rise in demand for Polish food in the EU, and increased household consumption); a change in Polish VAT, excise and tariff regulations to stay in line with EU rates; and a decrease in the value of the złoty, which took place in spring. The trend later reversed and the złoty strengthened considerably. The Monetary Policy Council (RPP) has reacted by increasing interest rates three times since then, which has kept inflation at the same level for the last few months.
A double-digit price increase on the previous year mirrored an increasing demand in the EU for agricultural products, such as milk, pork and cattle (with increases of 30.5, 31 and 57 percent respectively). This, together with expected surcharges (worth a total of zł.8 billion), considerably improved the profitability of production. "The countryside has not seen such an amount of money in years," said Prime Minister Marek Belka.
The last word
Polish GDP per capita is one of the lowest in Europe, amounting to just 46 percent of the EU average. The level of unemployment dropped slightly after May, but stagnated at 18.7 percent in October and November. Although Polish firms improved their productivity, effectiveness and product quality to be more competitive on the EU market, there is still a lack of enthusiasm to invest. Farmers, who finally feel more confident and have been reimbursed, are the only sector willing to risk investment.
Exports have been increasing for the last few years, with the EU being Poland's main customer. This year, for the first time, Poland had a trade surplus with Germany (it's main EU trading partner), due to a 25 percent increase in exports to Germany in the last eight months.
So far, the EU-Polish relationship has had surprisingly positive effects. However, the experiences of other countries show that the EU is an even more attractive and lucrative partner in the long term.
The changes in Poland after eight months in the EU
Marek Goliszewski, president of the Business Center Club (BCC)
"Politically, things became even worse. Economically, the investment climate, stimulated by entrepreneurs, definitely improved. We became more reliable in the eyes of the foreign investor. Polish entrepreneurs are now competing in a 456-million-consumer market. Unfortunately, many unprepared small and medium businesses will soon be expelled from the market. Socially, the mood improved after farmers received their first grants. To sum up, the general Polish attitude to the EU improved after we became a part of it. Our land wasn't bought out and we were not flooded by foreign food-goods. The EU is slowly earning their trust."
This campaign dredged up memories of the communist era, and people started buying up basic food goods to prepare themselves for the coming storm. In April, supermarkets' turnover jumped by 30 percent on the previous year.
Now that the storm has passed, and left little or no destruction in its wake, accession fever has subsided, and the reality can be contrasted with the speculation.
Public opinion
Although two thirds of Poles declare that nothing in their lives has changed since accession, and one fifth say their living standard has dropped, overall 51 percent of the country is happy that Poland is a part of the EU. Even if personally they did not feel things had changed for the better, many strongly believe that they will in the future. According to the survey, conducted by the Institute of Economic Development at the Warsaw School of Economics, the amount of "farming families looking fearfully at the future" dropped from 19 percent in July 2003 to 13 percent in July this year. Simultaneously, the number of families looking hopefully to the future increased from 14 to 21.5 percent. Farmers are also starting to invest in new machinery and general household modernization and enlargement. Agriculture, after seven years of decline, is becoming a 'well-oiled wheel' in the Polish economy.
Economy
In May 2004, the price of certain goods increased more than experts anticipated, bringing inflation to 4.6 percent, and the media out in a rash. There was a six percent increase in bread prices, an 8.9 percent jump in pork and a 7.3 percent hike in cigarette prices. Energy costs, connected to the international situation rather than the EU, also rose, increasing the overall Consumer Price Index (CPI).
Inflation was therefore a result of a more multifaceted situation, namely: the increased dynamics of the Polish economy (due to a rise in demand for Polish food in the EU, and increased household consumption); a change in Polish VAT, excise and tariff regulations to stay in line with EU rates; and a decrease in the value of the złoty, which took place in spring. The trend later reversed and the złoty strengthened considerably. The Monetary Policy Council (RPP) has reacted by increasing interest rates three times since then, which has kept inflation at the same level for the last few months.
A double-digit price increase on the previous year mirrored an increasing demand in the EU for agricultural products, such as milk, pork and cattle (with increases of 30.5, 31 and 57 percent respectively). This, together with expected surcharges (worth a total of zł.8 billion), considerably improved the profitability of production. "The countryside has not seen such an amount of money in years," said Prime Minister Marek Belka.
The last word
Polish GDP per capita is one of the lowest in Europe, amounting to just 46 percent of the EU average. The level of unemployment dropped slightly after May, but stagnated at 18.7 percent in October and November. Although Polish firms improved their productivity, effectiveness and product quality to be more competitive on the EU market, there is still a lack of enthusiasm to invest. Farmers, who finally feel more confident and have been reimbursed, are the only sector willing to risk investment.
Exports have been increasing for the last few years, with the EU being Poland's main customer. This year, for the first time, Poland had a trade surplus with Germany (it's main EU trading partner), due to a 25 percent increase in exports to Germany in the last eight months.
So far, the EU-Polish relationship has had surprisingly positive effects. However, the experiences of other countries show that the EU is an even more attractive and lucrative partner in the long term.
The changes in Poland after eight months in the EU
Marek Goliszewski, president of the Business Center Club (BCC)
"Politically, things became even worse. Economically, the investment climate, stimulated by entrepreneurs, definitely improved. We became more reliable in the eyes of the foreign investor. Polish entrepreneurs are now competing in a 456-million-consumer market. Unfortunately, many unprepared small and medium businesses will soon be expelled from the market. Socially, the mood improved after farmers received their first grants. To sum up, the general Polish attitude to the EU improved after we became a part of it. Our land wasn't bought out and we were not flooded by foreign food-goods. The EU is slowly earning their trust."
