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The Common Agricultural Policy is essential. It is key for profitability and determines how much Polish farmers and agri-food companies earn,” argues Henryk Wroniewski, President of the Management Board, Krajowa Spółka Cukrowa. Work is currently under way to formulate the Common Agricultural Policy beyond 2020. For Poland, the priority is to ensure equal direct subsidies. This is the only way to make sure that Polish farmers can stay competitive on the European market. In some cases, the current subsidies are three times lower than in Western Europe. This is significant as over the last decade direct subsidies made up almost half of what farmers earned.

Almost 80 percent of Polish agri-food products are exported to the European Union. Exports are negatively affected by the growing phenomenon of protectionism, which covers such measures as numerous sanitary inspections, negative media campaigns and additional certification requirements. More or less 30 percent of goods exported to countries which create barriers are discriminated against. As shown by the report developed within the Single Europe Varied Food programme, the European Commission is able to combat protectionism more effectively thanks to changes in procedures.

Besides development capital, start-ups, through cooperation with investors, usually receive support in the form of expert knowledge and know-how which are normally not accessible to them. Reaching up to several hundred percent, the return on investment (ROI) is in this case much higher than with traditional investments. Nearly every fifth start-up in Poland records a growth in excess of 50% a month.

Poland has been the European leader in window exports for three years. DOVISTA Polska, which belongs to the same capital group as the roof window producer VELUX, has just finished an expansion project, which is going to boost its position as a producer and exporter. The company invested PLN 22 m in the new 11,000 sq. m distribution centre. This project will help the company increase its production by 10-15 percent this year and create 100 new jobs. The factory in Wędkowy is the largest facility manufacturing wooden windows in Poland and one of the biggest employers in Pomerania.

Polish people consider their knowledge of finances to be considerable, and the areas in which they feel they have the largest gaps are cybersecurity and the tax system, a study by the Warsaw Institute of Banking entitled “Financial Education among Polish People 2018” finds. The most favourable assessments of their knowledge were given by young, high-earning people who lived in large cities. Critical opinions were expressed on the formal education regarding finances.

“Labour shortages might hinder entrepreneurship in Poland. The Government is planning to reach out to young people and to unlock the potential of 50+ citizens, while also relying heavily on immigrants from the East,” reveals Jerzy Kwieciński, Minister of Investment and Economic Development. Today, 40 percent of companies are employing Ukrainians, and 10 percent Belarusians. However, it is necessary to create good working conditions and ensure decent wages and salaries. Without these, after obtaining the necessary qualifications, foreign nationals will move to Western European countries.

More than 2.5 m Poles experience difficulties in the timely repayment of their liabilities. Unpaid debts is a major problem for the economy as a whole and for the enterprise sector, with businesses spending 5-6 percent of the total costs on dealing with the issue. In statistical terms, the percentage of recovered debt is low. For instance, bailiffs get back around 20 percent of debts. The experts of the Conference of Financial Companies (KPF) emphasise that the suggested changes in the regulations referring to the expiry of claims, with a more protective approach towards debtors, might make these statistics even worse.

Most parents do not include their children in money-related discussions and home budget planning, and only one in three children get pocket money. Meanwhile, giving children even low amounts on a regular basis can become a good lesson for them on how to manage their own money. When it comes to older children, as highlighted by a specialist from Goodwill Consulting, it is worth replacing the piggy bank with a simple bank account to show the child in practice what saving is all about and how the accumulated capital is increased by interest.

Neither the Monetary Policy Council nor the European Central Bank is in a hurry to tighten the monetary policy. Still, inflation is soon going to become the most important subject in the Polish economy. It is the sustainability of public finances when faced with an economic downturn that will matter in the long term. This is not likely in near future as economists agree that economic growth is going to remain at over 4 percent both this year and next year.

“Poles have been exceptionally quick to embrace new financial and payment technologies. Among other factors, this has made Poland’s retail banking, payment system and credit products some of the most unique globally,” observed Paweł Borys, President of the Polish Development Fund. This has opened up a vast space for fintechs – innovative financial start-ups which are starting to challenge banks. Blockchain, the technology behind cryptocurrency, will be one of the leading technologies to change the financial services sector in the years to come.

Over 90% of Polish communes have benefited from EU funds, as a result of which a vast majority of Polish people act as beneficiaries of EU resources. For this reason over 80% of of Poles assess the outcomes of the EU funds use in a positive way, as revealed by SW Research in its surveys conducted for the European Commission. Two-thirds of the survey participants have stressed that investment projects improving the road and infrastructure condition have the biggest impact on the development of their immediate surroundings. Under the current financial perspective, Poland has been the main beneficiary of EU resources.

According to the latest National Bank of Poland inflation report, this year prices in Poland will grow at an average rate of 2.1 percent. This is less than expected in November, when inflation was predicted at 2.3 percent. At 3.3 percent, food prices are expected to increase the most. However, the projected GDP growth has been revised upwards.