If you read the headlines on any given day, it seems like the United States is headed for a fall, as rivals China and Russia push their weight around. It falls short of its stated goal — to incentivize young couples to have more children — and encourages women to withdraw from the labor market. I take it that by 'strongest' you meant the largest, high performing economy. Compounding the problem is the government’s campaign of nationalization and restricting economic freedom. A historically strong recovery. We've had the rule of law, so you don't have to worry too much about a dictator seizing your company. Without the EU, Poland would revert back to the dark periods of its history. Once it joined the EU in 2004, Poland benefited from a flood of EU structural funds, in some sense the equivalent of the post-war reconstruction money it had missed out on because of the onset of the Cold War. By logging in, you confirm acceptance of our POLITICO Privacy Policy. To turn things around, Poland must restore the rule of law, privatize the enlarged state sector and undo government monopolies, improve the climate for foreign direct investments, and engage in fiscal reforms, including — most crucially — raising the retirement age. Deciphering Putin’s Russia: Why the Strains with the West? Poland’s working-age population is set to shrink by 0.8 percent annually between 2014 and 2040 — 0.3 percent of which is a direct result of the Law and Justice Party’s decision to lower the retirement age. In-depth reporting, data and actionable intelligence for policy professionals – all in one place. Rather than building on the successes of the previous government and preparing the country for a downturn, it is pursuing short-sighted policies it can’t afford and will hamper long-term growth. ... Eurozone avoids recession after strong German growth. Daily online magazine on the global economy, politics and culture. Under measures put forward by the previous government, women’s retirement age was due to increase from 60 in 2013 to 67 in 2040, while men’s retirement age would go from 65 to 67. In May, Law and Justice extended it to all children, raising the cost to 1.7 percent of GDP in 2020. In the near term, Polan… In addition, deserving countries have been afforded partnership status in the North American Free Trade Agreement (NAFTA). And what must Poland do to continue its progress in the coming decades?To get a sense of the historic achievement, it is worth recalling that, for most of more than a thousand years of its history, Poland (along with the rest of Central and Eastern Europe) was a perennial economic underachiever. The Japanese economy today is arguably healthier than it has been in over a decade, with annual GDP growth averaging 1.3% since 2012, again according to … The key risk to Poland’s future is the weakening of the European Union. As the Continent experiences a serious slowdown, Poland won’t be immune to its effects. As the Polish economy emerged from decades of state control, industries were privatized and market-based competition was introduced, followed by painful reforms. Campaigning, lobbying and political influence in the U.K. Latest news, analysis and comment from POLITICO’s editors and guest writers in Europe. The country was essentially stranded on the periphery of the … We have highly successful economic relations, particularly when we look at the Swiss economic footprint in the U.S. Our investment rivals that of other major foreign investors with much larger populations and economies. Do they offer lessons for its neighbors? Poland’s good fortunes are in large part the result of external factors. If Poland’s ruling party doesn’t push through serious reforms, the next downturn could seriously damage the country’s future. Key elements of the Polish success story resemble that of the German post-war economic story, especially social and economic inclusiveness as a key driver of economic success. Contact Us. The government’s flagship project, known as 500+, is a case in point. 6. Latest news, analysis and comment on migration in Europe and beyond. This is a major risk to the stability and growth of the economy, as these banks will be susceptible to political pressure and could accumulate a large backlog of bad loans as a result. The sunny job numbers and steady growth hide the fact that most people think the economy works only for people in … News, analysis and comment from POLITICO ’ s move to reverse an increase in revenues, employment... A number of factors have driven the us economy to the recent prognosis of the European Commission Poland’s growth. Inefficient and a waste of resources if so, it is very improbable, even before,... 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