Making a very loud fuss when things don't go your way may be ineffective for small children with stern parents – but it is often a fairly effective strategy when it comes to international trade policy, something that Poland is finding out to its cost.
The Italian Fiat decided to close one of its manufacturing plants in Tychy, Poland. In 2013, Fiat's output in Poland will drop from 650 thousand two years ago to as little as 300 thousand cars. The problems of the Polish Fiat reflect like in a magnifying glass some of the important challenges faced by the Polish economy. Firstly, the high level of industrial productivity does not guarantee a fast development any more. Secondly, we live in an environment where capital has a nationality, and Poland's national capital remains limited. Let's hope that Fiat's problems do not presage an unfavourable period for the Polish economy.
Polish innovative companies are rather concentrated on domestic market than on international expansion. That's one the main reasons of Poland's weak postion in rankings of innovation performance. According to biggest chances for Poland for getting strategic advantage in terms of innovations the competition in Europe is less in the health-care and biotech fields, so emphasis can be put on those areas of research and training of potential entrepreneurs says Franklin Pitcher Johnson.
The programme extending the paid parent leave is to cost taxpayers PLN 2 billion. If all eligible parents were to participate, the figure should amount to as much as PLN 5.2 billion. However, already while drafting the programme, the government assumed that some of them will not be able and others will not want to participate. The estimates show that the amount of PLN 2 billion is also a waste, since it will not increase the number of children born.
In fear of corruption investors created barriers, which unintentionally contributed to a series of bankruptcies of construction companies. It will be difficult to relax the straightjacket of regulations without triggering more corruption.
The European Commission has opened a probe into Gazprom – on suspicion that the Russian energy giant manipulates the prices of fuel and restricts competition. Over the recent months the allegations of monopolist practices have been also pressed against the Polish Oil and Gas Company. Undermining the power of the local dictator is expected to reduce gas bills, which are currently among the highest in Europe.