EU membership
The effects of Poland’s accession to the EU are diversified in terms of their range, nature and area. In particular, the majority of EU enlargement effects can be seen in the field of business cooperation with EU countries, a result of the fact that Poland began to follow uniform principles applicable in the EU internal market. Similarly, numerous significant changes have been noticed in agriculture due to intense advancement in the process of European integration as part of the Common Agricultural Policy.
• Poland took advantage of its chance for economic development created by EU membership, simultaneously building its economy based on sound fundamentals and a wise macroeconomic policy. EU membership turned out to be excellent protection against turbulence in the world economy. Being a part of the EU internal market, Poland is to a great extent protected against protectionist tendencies connected with the global financial and economic crisis. A protective role in Poland is also played by structural funds, EU Cohesion Fund and the Common Agricultural Policy (CAP) which shall significantly support economic growth in the future.
• An important factor in Poland’s economic growth in 2004-2009 and its prospects for the future have been the transfers from the EU budget. Within the period from 1 May 2004 to 31 December 2008 the transfers amounted to EUR 26.5 billion. At the same time Poland paid EUR 12.5 billion to the EU budget. Thus, after five years of EU membership the positive balance of financial flows from the EU was EUR 14 billion.
• Due to its EU membership Poland has the chance to take advantage of the cohesion policy funds (structural funds and the Cohesion Fund). In 2004-2006 this fund amounted to around EUR 12 billion, and in 2007-2013 Poland will be granted around EUR 68 billion. The cohesion policy funds have been allocated for projects in the field of transport infrastructure, environmental protection, and promotion of small and medium enterprises and employment support programs for the unemployed.
• One of the indirect effects of Poland’s accession to the EU has been the increase in foreign direct investment (FDI). This is connected with the increase in Poland’s credibility, macroeconomic stability and investment attractiveness. In 2007 the FDI inflow to Poland reached its record level of EUR 16.6 billion, exceeding the threshold of 5% of GDP. Consequently, FDI has become an important factor supporting Poland’s growth and has contributed to the increase in the Polish economy’s competitiveness.
• Poland’s accession to the European Union has caused dynamic changes in agriculture. The instruments of the Common Agricultural Policy have had a positive influence on the profitability of agricultural production and improved the financial condition of farmers. In 2008, in Poland, the average income of a person employed in agriculture was higher by 90% than the level reached in 2000. Implementation of the rural area development policy has accelerated the modernization process of agriculture sector and diversification of sources of income in agriculture.
• Removal of trade barriers between Poland and the EU has allowed high price competitiveness of domestic agricultural and food products. Since the accession the balance of export trade in these goods has been positive. In 2003-2007 goods exported increased by 250% and of goods imported by around 125%. The importance of other EU countries as Poland's business partners has increased. In 2003 nearly two thirds of all the agricultural and food products were sent to the current EU-27. Four years later this share was more than 80%.
• Due to the EU financial support Poland has recorded a dynamic development of road transport. Numerous important motorway investments have been implemented, e.g. Konin-Stryków section of the A2 motorway, Kleszczów-Sośnica and Legnica-Wrocław sections of the A4 motorway and Klucz-Kijewo section of the A6 motorway. The EU supported also the construction and modernization of expressways, e.g. Bielsko-Biała-Cieszyn section of the S1 expressway, Białobrzegi-Jedlińsk section of the S7 expressway, Elbląg-Grzechotki section of the S22 expressway, and a number of ring roads, including that of Grójec, Hrebenne, Mszczonów, Otmuchów, Puławy (together with the bridge over the Vistula River), Wyszków, Żagań and Żary. Moreover, EU funds were used for implementation of numerous road projects of regional and local nature. EU funds were also taken advantage of by the rail transport. For example, part of the railroad between Warsaw and Łódź, and Rzepin-state border and Mińsk Mazowiecki-Siedlce sections of the E20 railroad were modernized. EU funds were also used for the construction of the last section of the first line of the Warsaw underground.
• Implementation of acquis communautaire in the energy sector resulted in far-reaching ownership changes and transformation of the Polish natural gas market. Changes aimed at establishing market conditions which would facilitate free competition were introduced. Energy security of Poland in the fuel sector has increased due to the introduction of a system of compulsory stocks of liquid fuels and gaining access to an effective EU aid mechanism which has made it possible to overcome negative effects of breaks in oil supply.
• In connection with the necessity to comply with the EU standards in 2004-2009 positive tendencies in the field of environmental improvement were recorded. Air, water and soil cleanliness gradually improved, which did not have any negative influence on the simultaneous economic development. Prior to its accession to the EU Poland was granted as many as 20 transition periods, which made it possible to favourably spread the most cost-consuming activities over time. The scale of expenses incurred so far for compliance with the EU requirements in the area of environment can be proved by the fact that only in 2003-2005 over PLN 7.5 billion was spent on construction or modernization of sewage treatment plants and sewerage networks, and as much as PLN 6 billion was spent on air protection (in the cement production sector only) in 1990-2008. In general, the amount of investment expenditure to be incurred within 15-20 years following the accession is estimated at PLN 120-140 billion.
• Poland has become an active participant in the process of shaping EU policy towards Ukraine. Starting with its involvement in the EU and the Orange Revolution in 2004, Poland has been attempting to stimulate political dialogue and economic cooperation with Ukraine as an important partner and EU neighbour country. Another area of Poland’s activity was greater EU involvement in relations with Belarus. Nevertheless, in general, the Polish priorities (common for a number of new Member States) in the area of more intense integration of the Eastern European countries and the EU structures were confronted with the restrained attitude of some of the EU-15 countries. From the perspective of five-year EU membership, the greatest success of Poland has undoubtedly been the Eastern Partnership initiative launched together with Sweden in 2008 and addressed to six countries of the Eastern Europe and Southern Caucasus. Its acceptance by all the Member States gives hope for significant progress in involvement of those regions in cooperation with the EU. This objective shall be achieved with the help of EUR 600 million allocated from the EU budget for implementation of the Eastern Partnership program, which was the decision of the European Council made in March 2009. The key moment in discussions on the possible EU enlargement to the East is still to come, but the existing close relations shall be a strong argument in favour of continuation of the enlargement policy.
• Poland’s membership in the EU has also influenced regional cooperation. In the last five years Poland has been an active participant in, e.g. the Visegrad Group, Central European Initiative and the Council of the Baltic Sea States. Due to the EU accession of all the members of the Visegrad Group (Poland, the Czech Republic, Slovakia and Hungary) cooperation as part of this group has turned out to be of particular significance. Initially, the Visegrad Group played a role of a consultation forum for European issues and support for integration aspirations of the countries situated in the Eastern Europe and Western Balkans. Over time it has become an important forum for interest coordination, alliance establishment and realization of regional interests as part of the EU, and participation in its meetings was extended on the Baltic States and, after 2007, on Bulgaria and Romania.
• The enlargement in 2004 contributed to strengthening of Poland’s position in the world, the establishment of good relations with EU member states and other countries, including the neighbouring ones, and participation in regional cooperation and international organizations. Simultaneously, Poland’s membership in the EU was an impulse for reassessment of Poland’s foreign policy, its priorities and goals, as well as directions of involvement. Upon its accession to the European Union Poland got an opportunity to actively contribute to the EU global policy. Due to the enlargement the directions of interest of the Polish foreign policy have extended. Moreover, the enlargement strengthened the need for dynamic development of EU foreign policy. Consequently, the period which started in 2004 has been an important step in the process of further strengthening of the EU identity as the key partner on the international stage on a global scale.
• In the post-accession period a revival of business relations with third countries was recorded, both in the field of investments and trade. Poland’s image in the economic and political environment of non-European countries has evidently improved. Interest in economic cooperation with Poland as a partner who offers high (‘EU’) quality products and services for a relatively low price has increased. Upon the accession to the EU and improvement of the economic situation, Poland recorded a gradual but apparent increase in pressure of migration from other countries to Poland, which began to be a more frequent target country for migrants.
The major priorities of Poland’s policy in the EU referred to maximization of chances resulting from EU membership, efficient adaptation to functioning in the EU and gaining the position of an influential Member State with ambitions proportional to its size and economic and social potential. One of the most significant advantages of our accession to the European Union has been the opportunity to contribute to the process of reforming the EU and adapting it to the requirements of the European reality.
Information compiled based on the report ‘5 lat Polski w Unii Europejskiej’, edited by Małgorzta Kałużyńska, Katarzyna Smyk, Ph.D., Jakub Wiśniewski, Ph.D., the Committee for European Integration, Warsaw 2009. More information is available on www.polskawue.gov.pl.