Political Economy of Poland and the European Union

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Table of Contents

Introduction
Policy concerning the economic position of Poland in the Eurozone
The pursuance of foreign policy by Poland in the EU
Impacts of Poland Membership in the EU
Country specific features and investment in Poland
Conclusion
Works Cited

Introduction

According to Miszczynski (p. 6), Poland is a significant player in economy of the European Union. It is one of the largest states in the Central Europe with a population of about 39 million. The country is still adjusting itself to a liberal market system after abandoning the communist market system.

This was one of the pre-qualifications for joining the European Union. The country was included into the European Union in the year 2004. From the beginning of the 20th century, the economy of Poland has been growing steadily. Before the emergence of the global financial crisis, the GDP of Poland grew at an average of 5 percent each year (Kozun-Cieslak 87).

Poland is a transitional economy, a factor that makes it susceptible to financial turmoil in the European Union. However, the economy of Poland has not been severely affected by the economic crisis in the Euro zone. The country still faces many economic challenges most of which emanate from the lack of efficient political structures.

Most of the economic problems that the economy has are structural in nature (Kozun-Cieslak 88). The paper discusses the political economy of Poland in the context of the European Union; it also looks into significant economic policies that are pursued by the country in relation to its membership in the EU.

Policy concerning the economic position of Poland in the Eurozone

With one of the strongest economies in Central Europe, the country is becoming a leading player in the policies of the European Union. The economy of Poland is in the spotlight on the world arena today. It has managed to withstand financial pressures from the financial crisis in Europe.

The Polish economy has not shown signs of recession in the last two years, a period in which the crisis was at its peak (Rosenberg 475). The main problem of Poland, which affects its economic influence in the larger European Union economy, is the lack of voting power. This is one of the policy areas that is being pursued by the country. This issue puts the country at loggerheads with the European Union (Gebert, para. 3).

Poland has come out as one of the leading economies in the entire Euro zone amidst the problematic business climate witnessed in the last four years. Poland continues to push for a strong position at the high table of the union. Its efforts are hampered by many factors among them the influence of the dominant economies in the region. The county aspires to join the Euro zone remaining an observer in the affairs of the Euro zone.

The economic growth prospect of Poland has continued to exceed projections. This denotes the strength of the country amongst the countries that form the economic block. However, the country still experiences isolation in regards to investments. Research shows that foreign investors still shun from investing in the Polish economy. Investors from other European states, especially those in Western Europe, still associate the economy of Poland with other economies of Central Europe.

The economy of Poland is bound to be affected by economic activities in the European Union as the country trades with other European states. Many economists argue that Poland should be given a room to advance ideas and voice opinions in the Euro zone. The economy of Poland is gaining strong foundations in Europe and any negative forces of the economy are bound to cause negative impacts on other trading partners in Europe (Gebert, para. 4-5).

The pursuance of foreign policy by Poland in the EU

As an adapting member of the European Union, much of the foreign policy of Poland is centered around the regional economic relations. In order to strengthen its relations with the main economic power of the European Union, the country is working on a structure of detaching from the affairs of Central Europe countries. However, this is not a straightforward issue as the affairs of these countries have a direct impact on its economy.

The country has economic issues to solve as it is concerned with the securing of its borders and the settlement of frictions with its neighboring states. Its neighborhood with Eastern Europe forms the present policy agenda. Poland remains a key player in the political and economic development of the region. As it seeks to enhance market liberalism, the country is putting on pace in policy areas in the union.

The country continues to pursue foreign policy areas that focus on economic enhancement with other countries of the European Union. Most of the policy discussions center on the development of balance fiscal policies which have to favor all the members of the European Union (Gebert, para. 6).

Impacts of Poland Membership in the EU

The main priorities of the policy of Poland in the European Union have majored on building relations with members of the union. The country seeks to become an influential member of the union for it to enlarge its economic size and potential in the region (President PL Website, para. 6). By virtue of being a member of the European Union, Poland has derived benefits and losses. Most of the positive factors are derived from the economic benefits that are accrued from integration.

The country is expected to keep benefiting from the expanded market through trading with other countries in the union (Organization for Economic Cooperation and Development 89). Increased trade relations with other countries are resulting in the improvement of the social conditions of the population of the country. The country is also improving in the area of political security.

This is an essential component of economic and social development (Skotnicka-Illasiewicz 9). Poland is reaping the benefits of an open and liberalized market economy. It is worth to mention that the decision of the country to join the European Union has brought about friction between the country and its neighbors. The frictions are ongoing and have affected the participation of the country in trade (Szczerbia 1939).

Country specific features and investment in Poland

Poland presents a favorable climate for investment in the European Union. Poland is a fast growing economy. The GDP of the country has been expanding at an accelerating pace (Kozun-Cieslak 86). When this is translated into economic terms, it means that the volume of trade is widening meaning the industry is also widening.

The country has a relatively large population of approximately 39 million people presenting a potential market for the country. The majority of the Polish are well educated and make quality employees being an opportunity for foreign investors who can hire employees hence cutting on the cost of expatriating employees (Wach, para.2).

The act of joining the European Union adds to the economic potential of the country. A substantial number of opportunities are presented. Among these opportunities is the expansion of the market for the industry of the country. Investors in the country are being guaranteed an expansive market for products and services (Miszczynski 6).

Since it joined the European Union, the country has kept up the pace of economic expansion through infrastructure development. Its membership in the European Union also presents economic disadvantages to the country. The economic environment of the country has become competitive due to the opening of the country to goods and services from other European economies. External investors have to be aware of the growing competitiveness of the economy (Kozun-Cieslak 86).

The country still suffers from institutional weaknesses, a factor that exposes it to economic setbacks. The foundation of economic freedom has not gained strong roots in the country. It is caused by the prevalence of unethical standards like corruption and a judiciary system that is not independent.

The judiciary of the country is often subjected to political interference and manipulation. This climate is threatening and has to be considered by potential investors. The government of the country has been active in eliminating these vices. However, the pace at which changes are taking place is still low (Poland: Economic Freedom Score 1).

Conclusion

Poland presents one of the upcoming economies in the European Union. The country has provided an example of strong economy in the recent times having managed to withstand the recent financial crisis in Europe. The country continues to pursue policies most of which are aimed at improving its position in the European Union. The economic indicators also portray the country as an economy that is presenting many opportunities for investment in Europe.

Works Cited

Gebert, K. Reinventing Europe: Poland and the euro crisis. Web.

Kozun-Cieslak, G. Foreign Direct Investments in Poland Report for the End of 2004 and New Facts. Folia Oeconomica Stetinensia. 7.1 (2008): 63-86. Print.

Miszczynski, M. Knowledge-economy as a utopia. The case of Poland. Studia Universitatis Babes-Bolya. Studia Europaea. 57. 2 (2012): 5-28. Print.

Organization for Economic Co-operation and Development. Oecd Economic Surveys: Poland Volume 2006 Issue 11. Paris: Organization for Economic Co-operation and Development, 2006. Print.

Poland: Economic Freedom Score. PDF file. 2012. Web.

President PL Website. EU membership. 2012. Web.

Rosenberg, Jerry. The Concise Encyclopedia of the Great Recession 2007-2012. Lanham Md: Scarecrow Press. 2012. Print.

Skotnicka-Illasiewicz, E. 5 Years of Polands Membership of the European Union in the Social Context. PDF file. 2012. Web.

Szczerbiak, A. Poland Within the European Union: New Awkward Partner or New Heart of Europe? New York: Routledge Publishing. 2011. Print.

Wach, K. Doing Business in Poland (Socio-Cultural Aspects). PDF file. 2012. Web.

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