I read Martin Sandbu’s reaction to Mario Draghi’s recent speech with interest (“A Copernican revolution in EU economic thinking?”, Free Lunch, FT.com, December 19). What I would like to add to his comments is my constant surprise that Draghi still consistently fails to notice that there are places in the EU that have experienced unprecedented economic growth in the last two decades. Poland is one such country.
Polish success rests primarily on exceptional productivity growth. For example, from 2010 to 2019, labour productivity grew three times faster in Poland than the average across OECD countries. At the same time, domestic consumption consistently outpaced eurozone levels. This was supported by prudent yet growth-oriented fiscal policy that maintained stable public finances while fostering economic expansion. As a result, Poland has come closer to the core of the west in terms of GDP per capita than ever before.
However, Poland now faces a critical juncture. Like a runner reaching the final stretch, the country must navigate significant hurdles: a severe demographic challenge with one of Europe’s lowest fertility rates; innovation that lags behind EU averages; a relatively small financial sector and intensifying political divisions that could undermine institutional stability.
While Poland’s trajectory benefited from unique circumstances, particularly the transformative impact of EU accession in 2004 and substantial structural funds, dismissing its experience would be a mistake. Any serious discussion about revitalising growth in western Europe must examine how Poland, together with its many partners from big-bang EU expansion, achieved such sustained productivity gains while maintaining social cohesion.
The “old union” might not be able to replicate Poland’s exact path, but understanding its success offers valuable insights for broader European economic renewal.
Łukasz Hardt
Professor of Economics, University of Warsaw
Deputy President of the Polish Economic Society, Warsaw, Poland