Foreign Affairs Forum

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What are economic and political issues facing Poland

Introduction

Poland indeed faces several significant challenges in 2024

Political Tensions

The new government, led by Donald Tusk’s Civic Coalition, is encountering strong opposition from the previous ruling party, Law and Justice (PiS). This has resulted in:

Large protests by PiS supporters against changes in public media and the detention of former PiS politicians

Potential obstruction of the government’s agenda by President Andrzej Duda, who is aligned with PiS

Challenges in implementing reforms due to PiS-appointed judges in the Constitutional Tribunal

Economic Challenges

Poland’s economy is facing several pressures:

High inflation, recorded at 6.1% by the end of 2023

Weak economic growth, with only 0.4% annual growth in 2023

An expected rise in the budget deficit from 2.5% to 4.5% of GDP

Diminishing cost-competitiveness affecting the export-driven growth model

Social and Human Rights Issues

Several social and human rights concerns persist:

Ongoing discrimination against LGBT people and attacks on women’s rights, particularly reproductive rights

Limited access to abortion, even in life-threatening situations

Arbitrary detention of refugees and migrants in closed centers

Concerns over judicial independence and the rule of law

Environmental and Energy Transition

Poland faces challenges in transitioning away from fossil fuels:

Costly dependence on coal affecting competitiveness

Need for significant progress on climate mitigation to align with EU climate goals

Requirement for strong measures to meet new decarbonization targets while safeguarding competitiveness and social cohesion

Demographic Challenges

Poland is grappling with demographic issues that could impact its future growth:

Population aging, which poses a substantial drag on the future size of the workforce

Need for policies to support higher labor participation, especially for women

Conclusion

These multifaceted challenges indicate that Poland is indeed facing significant problems across political, economic, social, and environmental domains as it moves through 2024.