A short overview for foreign investors looking at Poland as a potential location, by Marta Zawilska-Florczuk, regulatory affairs manager, and Michael Dembinski, chief advisor, BPCC.
Half a year after last year’s parliamentary elections in Poland, the new government is focused on adjusting existing legislation in key areas such as rule of law. Much of its work to date has revolved around removing party-political persons installed by the previous government into leadership positions in state institutions, state-controlled enterprises, public media and regulatory authorities. Unblocking the EU’s Recovery and Resilience Facility funds earmarked for Poland has also been a top priority for the new government. These funds, worth around €61 billion, had been blocked by the European Commission because of rule-of-law issues with the previous government.
Whilst the government (in effect a coalition of three coalitions spanning a range of views from centre-right to centre-left) has a working majority in parliament and senate, the president still sides with the opposition PiS party that formed the previous government from 2015 to 2023. As such, the president can veto legislation passed by both houses. Presidential elections must take place by 18 May 2025; incumbent President Andrzej Duda will not be standing again because of constitutional term limits.
The government is currently at the discussion stage about a wide range of issues concerning the business environment. Its composition, covering a very broad spectrum of political views, is proving a challenge in fulfilling its electoral promises, and prolonging the decision-making process. It is far more open to the views of business than the previous PiS-led government, and is committed to producing quality legislation subject to proper regulatory impact assessment.
New legislation that is likely to appear on the statute books before too long may include deregulation of the legislative process, implementation of numerous EU Directives (most notably on climate and environmental policy), a migration policy, and reform of labour-market institutions.
This is a good time for businesses to step forward and let legislators know how the overall business environment in Poland could be improved, whether through simplification of the tax code, improvements to labour law that would reduce skills shortages, or streamlining the commercial code to make it easier to do business in Poland.
Keep following the regulatory affairs work of the BPCC for updates as to government initiatives that will affect the way business is done in Poland.
