On June 13th we invite you to the Telewizja Republika channel for our ‘Entrepreneur Time’ event, which will air at 12.15pm.n June 13th we invite you to the Telewizja Republika channel for our ‘Entrepreneur Time’ event, which will air at 12.15pm.
Enterpreneur TIme live on TV Republika!
Polish economy grew 4.7% in the first quarter of 2019 and growth continues
The Polish economy grew 4.7 per cent in the first quarter of this year, the country’s Central Statistical Office (GUS) said, presenting its final estimate. And the prospects for continued growth remain good.
This figure is 0.1 per centage points above the 4.6 per cent flash estimate which the statistical office released earlier this month. Polish GDP grew by 4.9 per cent in the final quarter of last year and grew by 5.1 per cent in 2018 as a whole according to GUS.
The Organisation for Economic Cooperation and Development (OECD) earlier this month upgraded its forecast for Poland’s GDP growth to 4.2 per cent, from a previous projection of 4 per cent.
The European Commission also raised its forecasts in May, announcing that it expected the Polish economy to expand by 4.2 per cent in 2019 as a whole, rather than by the 3.5 per cent it had predicted in February. It also raised its 2020 GDP growth forecast for Poland to 3.6 per cent from 3.2 per cent.
If the latest forecasts prove accurate, Poland will be the second fastest-growing economy in the EU this year, outpaced only by Malta, the state news agency PAP reported. “Private consumption is set to remain the key growth driver in 2019 and 2020 supported by a robust increase in wages,” the Commission said in its Spring 2019 Economic Forecast. It added: “An increase in social transfers will act as additional stimulus until around mid-2020.”
The report also noted that the growth in Polish GDP of 5.1 per cent in 2018 was the fastest in more than a decade. Indeed, Poland achieved the third fastest growth in the European Union in 2018, with only Ireland and Malta performing better out of the 28 member states, according to the European Commission’s report in February.
This continued good news for the economy is yet another reason why the governing Law and Justice party, fresh from success in last week’s elections to the European parliament, may look forward to the Polish parliamentary elections this autumn with confidence.
Strong retail sales and construction output outperform expectations.
Retail sales in Poland rose 13.6 per cent in April compared with the same month a year earlier, the Central Statistical Office (GUS) said on Thursday. Construction output also increased.
Sales of food, beverages and tobacco products increased by 21.5 per cent in year-on-year terms, while sales of furniture, consumer electronics and household appliances were up by 20.3 per cent. Sales of fuels rose 10 per cent and those of motor vehicles and automotive parts increased by 9.1 per cent. In real terms, retail sales last month were 11.9 per cent higher than in April 2018, GUS reported.
Spending during the Easter holidays was stronger than a year ago. And retail sales in these sectors are expected to remain strong in these categories in the next few months, given the introduction of fiscal programmes including a lump sum pay out to pensioners this in May and an extension of child benefits in July. Overall, private consumption is forecast by ING to accelerate from approximately 4.2 per cent in the first quarter to 4.4 per cent in the current quarter and exceed 5 per cent year on year in the third quarter.
Construction output also remained good, increasing from 10.8 per cent to 17.4 per cent on a year on year basis. The strong increase was related to spending on infrastructure projects with growth in this category expanding by 32.7 per cent year on year. However, the construction of buildings was less dramatic at 3.9 per cent year on year, likely due to a slowdown in housing activity.
According to initial GUS data, investment outlays in big companies (employing 50+ workers) rose by 21.7 per cent year on year, mainly due to expenditure on vehicles and building construction. A moderation of infrastructure spending is expected in the coming months and still soft growth in the construction of dwellings. Therefore, investment is projected to decelerate from approximately 7% in the first half of 2019 to 5% in the second half.
Overall, the data points to strong GDP growth in the second quarter, with ING increasing its forecast for GDP growth in the second quarter from 4.3 per cent to 4.4 to 4.5 per cent, slightly below quarter one’s 4.6 per cent.
EU judges say Poland's retail tax is not state aid
The Court of Justice of European Union (“ECJ”) has ruled that Poland may tax larger retailers more heavily than smaller ones. This overturns a decision from state aid regulators and raises the possibility that the tax regime for larger retailers which is currently suspended could be reinstated.
The ECJ decided that “the Polish progressive tax on the retail sector was incorrectly classified as state aid by the EU Commission,” the press service of the ECJ wrote on Twitter. This tax policy was one of the governing Law and Justice party’s main election promises during the 2015 election and came into force in September 2016. It was part of a series of measures designed to fund social spending pledges, which in the end the government managed to finance without the implementation of the retail tax.
Under the scheme, retailers with monthly revenue of over 170 million zlotys ($44 million) were to be taxed more heavily than their smaller shops, many of which had come under pressure from larger chains that were able to benefit from economies of scale to offer lower prices.
However, in 2017 the European Commission ruled that the measures constituted state aid and were thus illegal under EU law. The EU ordered the Polish government to suspend the tax and Poland appealed to the ECJ in Luxembourg. “It is not possible to exclude tax rates from the substance of a system of taxation as the Commission did,” the ECJ said in a statement.
Polish Finance Ministry spokesman Pawel Jurek said on Twitter that as the judgment is not legally binding and could be appealed against, the tax would remain suspended until the end of 2019. “The Commission will carefully study the judgment and based on that may take any potential next steps,” said a spokesman for the EU executive at its daily briefing.
President signs into law extension of 500+ programme to benefit all children
Poland’s president, Andrzej Duda, has signed into law the plan by the country’s governing Law and Justice Party to offer benefits to all families with children.
The bill was signed into law at a special ceremony at the presidential palace in Warsaw after it had been passed earlier in May by an 82 to 0 vote, with two abstentions, in the Senate, the upper house of the Polish parliament. It had been earlier overwhelmingly approved by the Sejm, the lower house of Poland’s parliament.
Last month the Polish government decided to expand its flagship child benefit programme to include all families with children under 18, regardless of family income. The prime minister, Mateusz Morawiecki, told reporters at the time that the “Family 500+” programme, which was launched on 1st April 2016, had opened up new prospects for Polish families and encouraged them to have more children.
In a statement in March, Morawiecki had said that the programme, introduced by the Law and Justice government three years ago, was an investment in the nation’s future. Elżbieta Rafalska, the social policy minister, had told reporters then that the “Family 500+” initiative was benefiting more than 3.6 million children nationwide. In mid-April she said that the Polish government’s family support system would cover 6.8 million children after it was expanded in July.
It has been the policy of the Law and Justice government, which came to power in October 2015, to seek to ease the burdens of bringing up children by giving families with two or more children a payment of PLN 500 (EUR 116, USD 130) per month per child. Poorer families receive the allowance even if they have just one child.
Under new law, the “Family 500+” programme will be expanded to include all single-child families regardless of income. The new rules will come into effect on July 1. Poland currently spends 2.7 percent of its GDP on state benefits for families and children—one of the highest figures in the European Union.
11th European Economic Congress Begins in Katowice
The 11th European Economic Congress began in Katowice on Monday. It is one of the most significant economic and business events to be held in central Europe, and will this year see more than 150 debates take place discussing the future of Europe’s economies, businesses, and more.
Amidst a turbulent Brexit and an expected rise of populist parties in the upcoming European elections the EEC is expected to focus on how European economies might work together in the future, potential trade deals and business with a newly-independent United Kingdom, and other international matters.
Polish energy policy will be another major issue discussed, with the Ministry of Energy discussing plans leading up to 2040.
Founder of the EEC and President of the PTWP (Polish Society for Entrepreneurship Support) Wojciech Kuśpik announced the event, saying:
“It’s the eleventh time that we’re meeting with opinion leaders in international circles at the European Economic Congress in Katowice. On 13-15 May 2019 we’ll be sharing experiences and knowledge, discussing the key issues for the European economy, matters of importance for the development of Poland as well as problems and challenges in business from the point of view of the “average entrepreneur”.
The topic of the future of the European Union is no doubt set to be an uncomfortable one.
Poland's PM: Poland will not pay damages – we should receive them
“We will often find compensation if we think more of what life has given us and less about what life has taken away.” The words of Scots theologian William Barclay which, while no doubt a wise philosophical approach, cut little ice in the modern mercenary milieu, especially if there are grievances to be assuaged. Thus, the Polish foreign ministry has announced the cancellation of a planned visit by Israeli officials because it seemed Israel wished the talks to focus on the restitution of property that once belonged to Jews.
The foreign ministry wrote in a statement on its website: “Poland decided to cancel the visit of Israeli officials after the Israeli side made last minute changes in the composition of the delegation suggesting that the talks would primarily focus on issues related to property restitution.” This announcement came as the Polish government is working on legislation to protect the country against any claims for compensation arising out of the Second World War.
The leader of Poland’s governing Law and Justice party, Jarosław Kaczyński, said earlier this month that Poland had no financial obligations arising from the wartime years “in terms of the law” and “elementary morality.” Rather, he said, over EUR 1 trillion in war reparations could be owed to Poland, which suffered massive damage at the hands of Nazi Germany in the Second World War.
The issue has become sensitive since United States President Donald Trump signed a year ago the Justice for Uncompensated Survivors Today (JUST) Act, by which the US State Department is expected to report to Congress on what steps countries in Europe have taken to compensate Holocaust survivors and their heirs for property seized under Nazi German occupation and communism.
Speaking in an interview at the time, Poland’s foreign minister, Jacek Czaputowicz, said that the JUST Act did “not offer any legal instruments” and was “not just” because it divided Polish citizens into “Jews and non-Jews.” “There can be no discrimination against non-Jews, and the majority of those to whom restitution applies are people of Polish nationality,” he said.
Michał Dworczyk, head of the Polish prime minister’s office, told public broadcaster Polish Radio earlier this month that the US law had no legal force in Poland and that “it is regrettable that some people are trying to use for political ends the fact that such a document has been adopted in the United States.” The US Special Representative to monitor and combat anti-semitism, Elan Carr, gave an assurance that the United States has no intention of dictating anything in the matter of the Holocaust victims and that the JUST Act does not oblige Poland to do anything in respect of the property lost by the victims.
Most of Poland’s large Jewish population – some thee million people or ten per cent of the country’s population at the time – was murdered by the occupying Nazi forces during the Second World War. After the war, the communist government confiscated large amounts of property and nationalised it. Most of the owners of the nationalised property were non-Jewish Poles.
Be that as it may, the issue requires some decisive action if it is not to fester ad infinitum. Unlike many other European countries, Poland has not enacted specific legislation to deal with restitution or compensation claims, although it has been possible to make claims on the basis of the facts in individual cases. However, that process is far from straight forward. This, and the passage of time, as we saw in Restitution, also increases the scope for skulduggery by those so minded.
Successive Polish governments have said they cannot afford to compensate the victims. A restitution scheme was being prepared by the Polish government, but this was suspended in 2011 in the economic downturn in the wake of the financial crisis, and, although Poland’s economic position is stronger now, no new legislation has been forthcoming.
Indeed, in the face of a rally in Warsaw on Saturday by nationalist groups rejecting any calls for Poland to pay compensation on the grounds that Poles themselves were the primary victims on Nazi atrocities, prime minister Mateusz Morawiecki told state-run PAP news at an election rally: “We will not allow any damages to be paid to anyone because it is us who should get damages”.
If progress is to be made, both sides will have to be realistic. While simply saying that loss should lie where it fell is no answer, nor is using the issue as stick to beat successive Polish governments, without acknowledging the particular circumstances of Poland.
Poland's PM: Poland will not pay damages – we should receive them
“We will often find compensation if we think more of what life has given us and less about what life has taken away.” The words of Scots theologian William Barclay which, while no doubt a wise philosophical approach, cut little ice in the modern mercenary milieu, especially if there are grievances to be assuaged. Thus, the Polish foreign ministry has announced the cancellation of a planned visit by Israeli officials because it seemed Israel wished the talks to focus on the restitution of property that once belonged to Jews.
The foreign ministry wrote in a statement on its website: “Poland decided to cancel the visit of Israeli officials after the Israeli side made last minute changes in the composition of the delegation suggesting that the talks would primarily focus on issues related to property restitution.” This announcement came as the Polish government is working on legislation to protect the country against any claims for compensation arising out of the Second World War.
The leader of Poland’s governing Law and Justice party, Jarosław Kaczyński, said earlier this month that Poland had no financial obligations arising from the wartime years “in terms of the law” and “elementary morality.” Rather, he said, over EUR 1 trillion in war reparations could be owed to Poland, which suffered massive damage at the hands of Nazi Germany in the Second World War.
The issue has become sensitive since United States President Donald Trump signed a year ago the Justice for Uncompensated Survivors Today (JUST) Act, by which the US State Department is expected to report to Congress on what steps countries in Europe have taken to compensate Holocaust survivors and their heirs for property seized under Nazi German occupation and communism.
Speaking in an interview at the time, Poland’s foreign minister, Jacek Czaputowicz, said that the JUST Act did “not offer any legal instruments” and was “not just” because it divided Polish citizens into “Jews and non-Jews.” “There can be no discrimination against non-Jews, and the majority of those to whom restitution applies are people of Polish nationality,” he said.
Michał Dworczyk, head of the Polish prime minister’s office, told public broadcaster Polish Radio earlier this month that the US law had no legal force in Poland and that “it is regrettable that some people are trying to use for political ends the fact that such a document has been adopted in the United States.” The US Special Representative to monitor and combat anti-semitism, Elan Carr, gave an assurance that the United States has no intention of dictating anything in the matter of the Holocaust victims and that the JUST Act does not oblige Poland to do anything in respect of the property lost by the victims.
Most of Poland’s large Jewish population – some thee million people or ten per cent of the country’s population at the time – was murdered by the occupying Nazi forces during the Second World War. After the war, the communist government confiscated large amounts of property and nationalised it. Most of the owners of the nationalised property were non-Jewish Poles.
Be that as it may, the issue requires some decisive action if it is not to fester ad infinitum. Unlike many other European countries, Poland has not enacted specific legislation to deal with restitution or compensation claims, although it has been possible to make claims on the basis of the facts in individual cases. However, that process is far from straight forward. This, and the passage of time, as we saw in Restitution, also increases the scope for skulduggery by those so minded.
Successive Polish governments have said they cannot afford to compensate the victims. A restitution scheme was being prepared by the Polish government, but this was suspended in 2011 in the economic downturn in the wake of the financial crisis, and, although Poland’s economic position is stronger now, no new legislation has been forthcoming.
Indeed, in the face of a rally in Warsaw on Saturday by nationalist groups rejecting any calls for Poland to pay compensation on the grounds that Poles themselves were the primary victims on Nazi atrocities, prime minister Mateusz Morawiecki told state-run PAP news at an election rally: “We will not allow any damages to be paid to anyone because it is us who should get damages”.
If progress is to be made, both sides will have to be realistic. While simply saying that loss should lie where it fell is no answer, nor is using the issue as stick to beat successive Polish governments, without acknowledging the particular circumstances of Poland.
Telewizja Republika Awards for 2018!
2018 Telewizja Republika Awards were handed out to Artur Soboń, deputy Minister of Investment and Economic Development , Zbigniew Jagiełło, PKO Bp chairman and Leszek Sosnowski, presidednt of the Biały Kruk Publishing House, were the first laureates of Telewizja Republika Awards, presented at the gala on the occasion of the 6th anniversary of the station’s establishment.
The award granted in the “Culture” category was handed out by the editor Katarzyna Gójska.
“The real challenge for the white crow (Biały Kruk) is to survive in a world of black. The winners of our award chose not only its name, but also the same difficult path.We live in the world when we have to fight for our own identity and tradition.” Wydawnictwo Biały Kruk or White Crow Publishing House participates in building community, documenting and describing our identity, achievements, tradition, they show the Polish vision of Europe and the world “ – she said.
The prize was awarded to the Biały Kruk Publishing House. President Leszek Sosnowski presented himself on the stage.
“I actually experience a good change: the fact that the chapter was noticed by someone in Krakow is an important thing, you know the authors, without these authors we would not have the achievements we have.” “Congratulations to Republika, six years is a pre-school age, and you still have primary school, a reformed secondary school to go through, the Polish media will not thrive without the help of the state, and the Polish nationals, that are willing to defend our identity “
– he said in his speech.
Biały Kruk Publishing House was founded in 1996 by Leszek Sosnowski who specializes in publications on diverse Catholic, cultural, historical and patriotic topics. It published the work and teachings of Saint. Pope John Paul II, with over 90 publications on the White Raven. Other items from this publication concerned, among others, Poland and its regions, church life or pilgrimages around the world. These articles and publication can be found in many languages.
Later on an award was given to Artur Soboń, deputy Minister of Investment and Development. He was awarded for the establishment of (Strefa Gospodarcza Wolnego Słowa) Economic Zone for a Free World, presented by Piotr Hofman.
“As the saying goes: there are no nestlings, it is also the role of those in power that these nests are to be available.”
“Housing conditions has always been an indicator for increasing prosperity and improving demographics. Our laureate involved himself in the development of one of the flagship programs, the Mieszkanie Plus or Appartment Plus Ownership, to establish housing as one of the fundamental human rights, we would not be able feel free without it, it was also our laureate who contributed to the change in this area, to the liquidation of the relic, which was perpetual usufruct, he restored our property, which is very important for the sense of freedom and thanks to this change, we felt even more capable of shaking things up, thank you for the sympathy and supportive words addressed to small and medium-sized entrepreneurs, it is the pillar of the Polish economy, the base, the foundation, what we have the best “
– Hofman said while handing the award.
Minister Soboń thanked especially two people.
“Thank you very much for this distinction, thank you, Prime Minister Jarosław Kaczyński and Mateusz Morawiecki, for their trust and opportunity to perform public service.” I treat this award as an obligation to expand this zone of economic freedom and Polish property. “That was the goal of our government of Law and Justice.” – He said.
In the “Business” category, Zbigniew Jagiełło, the president of PKO Bank Polski, received the Republika award. In the times of the Polish People’s Republic he was an activist of Fighting Solidarity, the author of publications in independent publishing houses and a co-editor of the issue of the biweekly Solidarnosc Walcząca. From September 14, 2009, he is the president of the board of PKO Bank of Poland. In 2007 he was awarded by the president of the late Lech Kaczyński with the Officer’s Cross of the Order of Polonia Restituta. Maks Kraczkowski received the prize on his behalf.
“On behalf of the bank’s employees, including members of the management board, thank you for the award, I assure you that as the largest Polish bank we will continue to build everything related to the innovation of banking systems in Poland, we will be even better for you every day” – he stressed.
Scores of people took part in the gala of the 6th anniversary of Telewizja Republika in Galeria Porczyński in Warsaw, including Sejm Speaker Marek Kuchciński, PiS spokeswoman Beata Mazurek, head of the Prime Minister’s political cabinet Marek Suski, former national defense minister Antoni Macierewicz, head of the Prime Minister’s Chancellery Michał Dworczyk, deputies, senators or representatives of embassies.
Poland’s Civic Platform Leader Calls for Euro Adoption Debate
The leader of the opposition party Civic Platform, Grzegorz Schetyna, has called for a national debate on the adoption of the Euro currency. Speaking to Reuters, Schetyna explained that Poland needs time to “conduct an open debate on the Euro”.
He went on to explain that if his party was to have a parliamentary majority to adopt the Euro, following the national elections later this year, then “simultaneously there has to be a debate, we need to convince people”.
Note the use of the terms simultaneously and convince. Call me a cynic, but it sounds like Schetyna intends to introduce the Euro and tell the voters what he’s doing is the right thing to do, rather than engage in constructive discussion about it. Opinion polls currently show almost 60% of the Polish public would rather keep the zloty currency, but a win for the Civic Platform later this year could see attempts made to slash that majority and convince the people that the single currency will be a good idea for Poland.
But Poland is doing just fine without the single currency. In fact, Poland’s thriving. The European Bank for Reconstruction and development has raised the growth forecast for Poland’s GDP for 2019 to 4.1%, up from 3.6%. A further growth of 3.5% is expected for 2020.
Attempting to convince the Polish people that the single currency is a good idea will be an uphill struggle. The Eurozone has not been a universal success, and deprives nations of the ability to adapt to their own internal market situations. During the 2008 crash, Spanish lawmakers were unable to make the Euro cheaper to counteract the effect of the debt crisis and failure of the property market. Unemployment rose and peaked at 26.3% in 2013. Today, it’s 13.9%. In Poland, it’s just 3.5%.
Schetyna’s ideas will be put to the test in just a couple of weeks, when voters go to the polls to decide a fresh new intake of Members of European Parliament. The Civic Platform and European Alliance will be looking to take seats from the ruling party.