Various support programs for companies have been introduced in Poland. In addition, measures to stimulate the economy are underway.

Low-interest loans and non-repayable liquidity assistance are available to companies in Poland, depending on their size. In addition, subsidies for employees’ salaries can be applied for. However, these are only partially comparable with the short-time allowance. For one thing, companies still have to pay a large proportion of wages. For another, the amount of the subsidies is not based on the salaries of the respective employees, but on the minimum wage or the general average wage in the country.

Aid for particularly affected sectors

Many aid measures are particularly targeted at small and medium-sized enterprises. While the first aid measures in the spring were available to all companies, the later measures focus on particularly affected sectors of the economy. For example, the assistance introduced in December 2020 is targeted at 38 industries.

The same applies to the second version of the financial shield, which was launched in January 2021 and is intended to secure the liquidity of companies affected by the crisis. It is aimed at small and medium-sized enterprises in 54 industries. The current support measures are currently being repeatedly extended by three months with minor changes.

According to the International Monetary Fund, the support measures introduced and announced by the Polish government until the end of 2020 reach about 15 percent of domestic gross domestic product (GDP).

Measures for economic revitalization

The basis for the loans, liquidity assistance and salary subsidies is the so-called anti-crisis shield. In addition to measures to deal directly with the crisis, it also includes programs to support the economy in Poland. The shield has a total volume of around 47 billion euros.

The money is divided among the following five pillars:

1. Protection of jobs (6.6 billion euros)
2. Financing of companies (16.3 billion euros)
3. Health care (1.6 billion euros)
4. Strengthening the financial system (15.5 billion euros)
5. Public investment (6.6 billion euros)

The money for public investment is to be used to expand spending on infrastructure, including construction projects and in the areas of energy, digitization and environmental protection.

Poland’s Ministry for Funds and Regional Policy (Ministerstwo Funduszy i Polityki Regionalnej) is currently preparing a so-called National Reconstruction Plan (Krajowy Plan Odbudowy; KPO). The plan is a prerequisite for receiving funds from the European reconstruction instrument Next Generation EU. The funding priorities are to include the energy transition, digitization, infrastructure and the competitiveness of Polish companies. The final draft of the KPO is to be submitted to the European Commission in the first quarter of 2021.

Companies’ and municipalities’ willingness to invest to be stimulated

The government has also set up a fund for local investments (Rządowy Fundusz Inwestycji Lokalnych): Around 1.2 billion euros is available for municipalities. A sum of around 200 million euros has been earmarked for counties. The funds were distributed among the municipalities and counties on the basis of criteria such as the number of inhabitants and the unemployment rate.

In addition, a further 1.4 billion euros will be made available. The municipalities and counties must apply for these funds. As Poland’s Prime Minister Matuesz Morawiecki announced at the beginning of December 2020, the fund is to be continued in the coming years.

Poland’s central bank has already cut its key interest rate three times since the start of the Corona crisis. On March 17, 2020, the institution cut the rate from 1.5 percent to 1 percent. This was followed by another cut in the key rate to 0.5 percent on April 8, 2020, and to 0.1 percent on May 28, 2020.

Infrastructure projects and tax reform to boost economy

Details of the planned additional spending on public infrastructure are not yet known. Independent of the Corona crisis, however, comprehensive infrastructure programs are underway in Poland with the support of European funding. In June 2020, the government had allocated an additional €5 billion to the national road program.

The government has made it clear that it sees infrastructure investment as a crucial building block for getting out of the crisis. For example, infrastructure investments are to be accelerated as part of the planned central airport so that they can help revive Poland’s economy. In addition, an amendment to the construction law came into force on September 19, 2020, which is intended to simplify and accelerate construction projects.

In addition, the government presented a package of support measures for small and medium-sized enterprises at the beginning of October. These are also intended to stimulate companies’ willingness to invest. One component is the corporate tax reform based on the Estonian model, which has now been adopted. Under certain conditions, corporations will not have to pay tax from 2021 if their sales are below EUR 22 million and profits are reinvested.

Public debt grows

Before the outbreak of the Corona crisis, Poland’s government budget was in a comparatively good position. Consolidated gross debt stood at 46 percent of GDP in 2019, the eleventh lowest level within the European Union. Before the crisis, the government had envisaged a balanced budget for 2020. However, experts had described this as an unrealistic election campaign maneuver. In the meantime, the government expects a deficit of 12 percent of GDP for 2020. According to the draft budget of August 2020, the deficit will be 6 percent of GDP in 2021.

This year, the volume of tenders is still significantly lower than in 2019, with the estimated funding volume being the equivalent of 6.4 billion euros. A large part of this is likely to be allocated to photovoltaic and wind power plants with more than one megawatt.

The tenders for renewable energies in Poland are re-scheduled every year. While last year a volume of 185 terawatt hours was tendered and only 91 terawatt hours were awarded, the tenders for 2020 are now only estimated at a maximum of 75.3 terawatt hours. The subsidy for this volume amounts to 27.4 billion zloty, which is equivalent to around 6.4 billion euros. The subsidy will be paid in Poland for 15 years.

With regard to the procedure of the eight rounds of bidding in total, this year, due to the corona pandemic, bids can only be submitted via an internet auction platform. This was announced by the Polish regulator Urzad Regulacji Energetyki (URE). Last year there were twelve rounds of bidding. Eleven of them were decided.

The first round is scheduled for 3 November and will cover biogas from agriculture. Plants in this category must have already been completed and must have a capacity of over one megawatt. The remaining seven rounds of tendering are aimed at new plants from the various renewable energy sectors, including biogas, hydropower, geothermal energy and offshore wind power.

The bidding rounds, which begin at the end of November, are eagerly awaited. On 26 November, there will be a direct competition for awards between the new onshore wind power and photovoltaic plants with a capacity of more than one megawatt. This will be followed by a no less interesting decision in the field of smaller plants with a capacity of less than one megawatt that have not yet been completed.

The last two rounds will probably account for a large part of this year’s funding. This was also the case in 2019. At that time, the funding concentrated on the tendering round for wind and photovoltaic systems with a capacity of over one megawatt. Thus 46.3 terawatt hours of energy from these plants were subsidised with the equivalent of around 3.5 billion euros.

The Polish regulatory authority URE estimates that as a result of the auction, up to 1000 megawatts of new wind power installations and almost 800 megawatts of photovoltaic capacity could be created in 2020.

The Polish Ministry of Climate has already announced extremely ambitious targets for next year’s tenders. According to these targets, 1.7 gigawatts of capacity of photovoltaic systems are to be added in Poland next year in the course of the auctions. According to the Ministry of Climate, Poland could then gain 2.2 gigawatts of capacity for all renewable energy sources after 2021 if the tendering process can continue as planned for the current year. Tenders for 53.235 terawatt hours are planned for 2021. The maximum funding volume is then to be the equivalent of 4.6 billion euros.

The construction industry is set to accelerate economic growth. Less bureaucracy, simpler approval procedures and increased digitization are giving the industry a boost.

The European Commission expects Poland’s gross domestic product (GDP) to grow by 4.3 percent in real terms in 2021, following a decline of 4.6 percent in 2020. The construction industry is important for the economic revival in Poland. In order to simplify and accelerate the implementation of construction projects and increase their number, new legal regulations will come into force on September 19, 2020. The basis for this is an amendment to the Construction Law and some other laws of February 13, 2020, published in the Polish Law Gazette (Dziennik Ustaw) of 2020, item 471.

New regulations to reduce bureaucracy

Permit requirements are eliminated for some construction measures. Some projects only require notification, while others require neither notification nor approval. In order to obtain a building permit, less extensive documentation and detailed designs will in future have to be submitted to the responsible local administrative bodies for architecture and construction or the building inspectorate. Construction solutions in detail can be designed after permission has been granted.

The key innovation is the division of a construction project into three parts. Only the first two parts, concerning the management of the land plot and the general architectural and construction design, are subject to approval. Only before the start of construction does the investor have to certify that he has a detailed technical design. This saves time and money. Missing or unclear development plans of municipalities can hinder projects less.

Accordingly, as of September 19, there will also be a time limit on retroactively declaring legally binding, positive decisions on building permits invalid. Until now, this has been possible indefinitely under certain circumstances, for example if it turns out that they contradict local development plans. Now, a time limit of five years from the date on which the positive decision for a building project was issued will be introduced for this purpose. For constructions without a valid permit, such a permit can be obtained even after the construction work has been completed. The possibility of waiving technical building regulations is opened.

Applications will be submitted digitally in the future

The digitization of building formalities is also intended to further facilitate and accelerate construction from December 2020. The Main Office for Construction Supervision (Główny Urząd Nadzoru Budowlanego; GUNB) has already been offering the e-budownictwo service since August 2020. There, in a pilot phase, the first forms for announcements and applications in the construction process are offered electronically.

According to the Vice Minister for Development, Robert Nowicki, these can be filled out on the screen. They still have to be printed out, signed by hand and sent by mail to the relevant building inspection office. Starting in the fall, it will also be possible to sign the forms using an electronic signature and send them via the e-budownictwo portal. Alternatively, all formalities can still be completed by mail.

Plans also call for an investor account at e-budownictwo and a digital central register of persons holding building permits. In addition, the Ministry of Development plans to issue an electronic information sheet for the construction industry on a regular basis.

So far, the construction industry has been able to hold its own well in the Corona crisis, mainly thanks to continued investment in transport infrastructure. In building construction, projects that have been started are being completed.

On time, even before Poland’s accession to the EU on 1 May 2004, we founded our consulting firm in Poland.

Initially, also thanks to our on-site presence, we were able to help our clients overcome hurdles and implement plans. Meanwhile, we are market analysts and consulting experts for many industries.

Over the years we have not only supported dozens of companies in individual projects but also advised on the implementation of market development.
With us, they were able to analyse their market potential, formulate the market entry strategy, open their own branch office, start or increase sales to Poland, or set up new cooperations in sourcing.

Our project team is very technology affine and we often deal with innovative technologies, niche products and niche services.

Our company Poland Consulting Services Sp.z o.o. is a team of market analysts and consulting experts for Poland and also for Germany over the last years, helping and advising companies in their market entry in, export to and the business development in Poland and Germany.

We invite you to cooperate and support you in future also in pre-sales activities for finding new leads and customers and for getting (sales) appointments (face-to-face or video) with qualified leads and with existing accounts.

With Poland (7th) and the Czech Republic (10th), two Central Eastern European countries are among the top ten German trading partners which further record solid growth rates. “Fifteen years after the eastward enlargement of the European Union, our eastern neighboring countries are deeply integrated into the value chains of #GermanIndustry“ said Mr. Büchele, the chairman of the Ost-Ausschuss – Osteuropaverein (OAOEV).

The trade with Poland only, by far the largest German trading partner in Eastern Europe, rose by 7.5 percent to 118 billion euros in 2018. With exports of 63.1 billion euros (+6.4 percent), Germany continued to realize a clear trade surplus (8 billion euros).

In the ranking of German foreign trade partners Poland is now almost equal to Great Britain in terms of turnover.
In the next three years Poland could succeed in the leap into the TOP 5 of the most important German trading partners.

German imports from Central and Eastern Europe also rose again noticeably. “Numerous new investment projects such as the factories of Mercedes in Poland will further consolidate the role of this region,” said Mr. Büchele.

Our company Poland Consulting Services Sp.z o.o. is a team of market analysts and consulting experts for Poland, helping and advising companies in their market entry in, export to and the business development in Poland.

The major players in the market offer electrodes for cardiac monitoring, diagnostic, neonatal, and pediatric cardiac monitoring, and diagnosis.

These diverse range of medical electrodes facilitate a physician to monitor and diagnose patients with wide range of cardiac issues among all major age groups.
Both reusable and disposable electrodes are used for the diagnosis and monitoring cardiac diseases.
However, disposable electrodes are the widely adopted in the field of cardiology in Poland.

The leading Polish manufacturers of disposable ECG electrodes are Sorimex sp. z o.o. sp. k., Esvico Sp. z o.o. and Farum S.A.

The major end users for cardiology electrodes include hospitals, alternate care settings, research laboratories for determining resting and diagnostic ECG, exercise test, stress test, and holter monitoring, in cath lab, in telemetry equipment and even in acute care conditions.

Hospitals in Poland are obliged to purchase medical equipment via tenders. This concerns all hospitals which have a contract with the state-owned National Health Fund (NFZ).
Only private clinics and privetly operating practices that do not settle their services via NFZ can buy the equipment where they want.

Please contact us for more detailed information and key figures on the Polish ECG electrodes market that we have analyzed in various aspects in a market study !

The area of blueberry cultivation in Poland increases year by year.

The current production of highbush blueberries in the country is conducted on the area from approx. 5.5 to approx. 7 thousand hectares, and the harvest oscillates between 15 and 19 thousand tonnes.
In 2017, as a result of growing area of cultivation in Poland, the production of blueberries was higher than in the
previous year by 9%, and in comparison with the average from 2013-2015 by 27%.

Up to 80% of the blueberry production is intended for export to the main buying countries that are UK, Germany and Scandinavia. New sales markets for Polish blueberries include Malaysia, Japan, Singapore and Hong Kong.

There are some big producers on the market cultivating more than 400 ha of land and equipped with the latest cooling and sorting technology as well as technologies to prevent damages caused by animals and severe weather events.
Beside fresh fruits some producers also offer dried and frozen blueberries.

Regarding wholsale and export prices for blueberries there are regional and seasonal differences.

Please contact us for more detailed information and key figures on the Polish blueberry market that we have analyzed in various aspects in a market study !

The Poles spent nearly PLN 1.5 billion (appr. EUR 350 million) for grape wines in 2015 and thus 7.2% more than in the year before. Referred to the total category of wine, spending increased by 5% and totaled PLN 2.2 billion (appr. EUR 520 million).

Every Pole drinks about 6 liters of wine per year. This is in terms of quantity far below the per capita consumption of French and Italians and the Czechs and Slovaks. However, the quantity gap between the Poles and these nations is reducing constantly.
Regarding taste preferences and preferred residual sugar content in wines the Poles most often buy semi-dry wines, which supersede more and more the sweet wines.

In 2015, the total sales volume of grape wines was divided into 56% red wine, 33% white wine and 11% rosé wine. The highest increase over the previous year was recorded by the white wines.
The largest sales share currently amounts to wines from the US, especially the Carlo Rossi brand from California.

When analyzing the points of sale then it appears that consumers buy most wine (in terms of value) in discounters. The discounters generate 39% of the total value of all grape wines sold in the country. This high share of discounters on sales of wines is one of the highest in Europe.
In contrast, the large hypermarkets lose shares and reach 24%.
The supermarkets have recorded the third largest sales share (17%). Compared with the hypermarkets the supermarkets were able to increase their sales shares from year to year.

In the longer term, the wine consumption in Poland is expected to grow by 7% annually and the demand will continue to develop towards wines of higher quality.

Please contact us for more detailed information and key figures on the Polish wine market that we have analyzed in various aspects in a market study !

The toy market in Poland is one of the most rapidly developing worldwide. In 2015 it grew by 10%, which is comparable to the market growth in Mexico. Only Russia has a higher growth rate.

According to expectations of the Polish government, the sales of toys are to receive an additional boost by the lately increased child benefit, which is paid to families since April 2016. Before this new law families with low income were granted a monthly child benefit between 77 and 115 PLN.
Since April this year Polish families can get 500 PLN (appr. 120 EUR) per month for the second and for each additional child up to age 18. In addition, families with low income already receive this benefit for their first child. According to estimates of the Polish Family Ministry, around 2.7 million families are eligible for the new child benefit.

The toys offered in stores are mostly imported products. Imports will continue to rise, with China followed by the Czech Republic and Germany as the most important countries of origin.

Polish exports of toys reached record numbers last year. Its value amounted to PLN 4.6 billion (appr. EUR 1.1 billion) and was thus higher than ever before. In 2014, the export value was at around PLN 3 billion (appr. EUR 710 million).

The rising export figures also result from the positively developing producer situation in the country around the big, internationally operating TOP 5 “Cobi” (product focus: building blocks made of plastic), “Granna” (product focus: board and table games), “Wader” (product focus: plastic toys such as vehicles, building blocks) “Canpol” (product focus: baby accessories and toys for babies) and “Trefl” (product focus: puzzles, board and table games, playing cards). In Poland, there are approximately 250 major toy manufacturers.

In terms of trade the six major retailers Smyk, Empik, Toys”R”Us, Carrefour, Tesco and Makro reached total sales of around PLN 1 billion (appr. EUR 240 million).

Originality and individualism
Customers attach much more attention to a very distinct identity and brand building. They emphasize mainly on originality and individuality. The huge competition forced the investors in recent years to put attention to every detail in shop equipment.

Sensory marketing with interesting lighting and pleasant odour in the shops.

Ecology and energy efficiency
Ecology in the retail industry is a new trend that is likely to remain on the market for longer, not only because of the environmental protection and energy efficiency, but also for reasons of visual impact, which will undoubtedly affect the perception of the brand.
The most popular materials representing this trend include plywood and light wood. Equally often appear linen, cotton, wicker, bamboo or stone.
There are used colors referring to the color of the earth, such as beiges, browns, greens. Such materials convey freshness and rejuvenate the brand image. They are often used in order to convince the company’s existing customer base or younger people to live a healthy, eco-friendly lifestyle.

Modular furniture
Modular furniture plays a significant role in large supermarkets, but also in medium and small stores of different sectors.

New technologies
New technologies enter more boldly shops and boutiques. The latest collections of the brand are displayed on screens, and the availability of interesting products can be checked on the smartphone or tablet.