Poland has much to learn from Ireland's experience of catch-up economic growth, according to its finance minister and deputy prime minister, Prof Grzegorz Kolodko. But it will be entering the EU next year at 40 per cent of the EU average living standard compared with Ireland's 58 per cent when we joined the EEC in 1973, writes Paul Gillespie.
In addition, Poland will have much less support from EU transfers than Ireland has had.
Prof Kolodko met the Minister for Finance, Mr McCreevy, the Tánaiste, Ms Harney, and Governor of the Central Bank Mr O'Connell yesterday before giving a lecture to the Institute of European Affairs and meeting business representatives.
He told a press briefing all the central and eastern European states due to join the EU next year "had expected much better terms from the accession negotiations" but have had to reconcile themselves to a less-attractive deal in a period of slower European growth.
Nonetheless, Poland has already "incurred most of the costs, and most of the gains are to come". This will be a prominent argument in the referendum due on June 8th, which he expects to be carried with a two-thirds majority.
Prof Kolodko aims to restore Polish growth rates to over twice the EU average in coming years. That will have to be sustained for many years if it is to catch up. This can be achieved mainly on an export-led performance involving a mix of pharmaceuticals, cars, steel, ships, furniture and food, all of which have been doing well.
Agriculture will be the main beneficiary from EU transfer policies. The sector includes 23 per cent of the Polish labour force but produces less than 6 per cent of its GDP. With employment at a high 18 per cent, especially in provincial towns, Poland faces a major problem of transition which will last at least a generation.
He expects to find common interests with Ireland and France on agricultural reform. He supports more fiscal integration in the longer term (including on corporate taxation), but not until greater political convergence has been achieved within the EU.
