EU funds boost Polish economy

According to a new study released by professor Janusz Zaleski from the Wroclaw Agency of Regional Development, EU funds are substantially enhancing Poland's GDP growth.

"Without EU funds, GDP growth in Poland would have been even 1.7 percentage point lower than the 6.5 percent estimated by the central statistical office", said professor Zaleski.

EU subsidies encourage companies to invest more. Entrepreneurs have conducted 14,500 subsidized projects worth PLN 16.6bn (EUR 4.7bn) since 2004. "That's why the investment level in 2007 was 13.6 % higher. This in turn influenced other businesses. Labor productivity grew by nearly 1 % while employment grew by 316,000 people", professor Zaleski added.

The situation should be even better in the future. "The highest GDP growth dynamics will take place in the years 2010-14. GDP growth will be 2.34 % higher provided that Poland manages to use 95 percent of the EUR 67.3 billion of funds available in the years 2008-13", the economist said.

Investments will be the highest in 2013 when thanks to EU subsidies companies will implement 28.1 percent more projects. The labor productivity will be 5.4 percent higher while the number of employees - by 613,000. "In the next two years, the influence of EU funds on the economy will gradually decrease but it still will be visible", Janusz Zaleski expected.

If these forecasts come true, funds from Brussels will make Poland resistant to downward trends in the world economy and financial markets.

"Even if the world slows down, Poland will have a relatively high investment level. As long as companies can count on EU subsidies, investments will be profitable. And this supports stabile GDP growth, which in turn will increase the quality of life", said Maciej Reluga, BZ WBK chief economist.