- Poland's number of coronavirus-related deaths surpassed 100,000; the number of deaths per 1 mln inhabitants is among the world’s highest.
- As of Jan.1, Poland took over the OSCE Chair for 2022, striving to make progress towards a peaceful resolution of conflicts in the OSCE area.
- Senate appointed a special committee, without PiS senators, to investigate the use of the Pegasus spyware in the 2019 elections and to develop a reform of the Polish secret services.
For Your Situational Awareness
This week’s analysis of the French Presidency is delivered by Thomas Tindemans, Chairman of H+K Strategies Brussels.
The French Council presidency coincides with the French presidential election campaign and then election in April, and the parliamentary elections in June. French and EU media will scrutinize any success or failure of the French Council presidency with enhanced attention in light of the looming ballots, which will for sure add extra spice to EU discussions.
The Czechs take over the Council presidency in the second half of 2022, essentially focusing on the same priorities. The dynamics in the Council could well look different than what we have become used to. For one, observers are fascinated by the new German government. After 16 years of Angela Merkel and her CDU-CSU in power in Germany and dominant in the EU, the new coalition of SPD, Greens and FDP will no doubt put a different emphasis on various issues – especially when it comes to climate policy, the defense of democracy and fundamental rights in the EU and abroad. Whether the direct line of communication between fellow Christian-democrats Merkel and von der Leyen, bolstering the central role of Germany on EU policy making, will be replaced by new preferences with social democrat chancellor Olaf Scholz in charge, remains to be seen. No doubt the German Greens will increase their influence on EU policies, with foreign minister Annalena Baerbock in the driving seat. It is noteworthy that while there is no Commissioner from a Green party, the Greens are coalition partners in seven member-state governments. We can therefore expect a more critical attitude from the Council and Germany in particular when assessing Commission proposals.
Parliamentary elections are due in Hungary in April 2022. Whether the recalcitrant prime minister Victor Orban prolongs his tenure and tendency to challenge EU proposals, or a new a wind more favorable to EU policy making blows from Budapest to Brussels, will greatly influence the Council’s capacity to reach agreement on many sensitive files in hand.
Why it matters
Even the understanding of a key term to the French presidency – sovereignty – is antipodal between the two administrations. While the French would aim for collective European sovereignty, the current Polish government perceives it in a traditional, nation-state way and as virtue that should be defended, also from overly ambitious EU politicians.
There are, however, two aspects of Macron’s sovereignty where the Polish government and the French presidency might see eye to eye. First is the external border control, or defense - as the Polish government would put it. Both countries see the issue as pressing, Poland - because now it concerns its backyard, France - as a broader benchmark of EU’s capabilities.
Second is the energy policy. France leads charge to label nuclear power as “green” and make it eligible for preferential financing and lower tax rates. Poland, which has yet to build its first energy-producing nuclear facility, firmly supports this stance as it aims to make nuclear energy one of the pillars of its energy sector’s overdue transformation.
Although the chances for a fundamental realignment are meager, the individual cases where French and Polish interests overlap might produce a mutually beneficial mosaic, provided that preexisting differences don’t dwarf those particular truces.
If you are interested in a more comprehensive paper outlining the 2022 priorities in the EU from a public affairs perspective, please reach out to us.
ENERGY | TECHNOLOGY |
PKN Orlen, the largest Polish fuel company announced how it plans to meet the European Commission’s conditions of approval for the acquisition of the second largest fuel company in Poland - the Lotos Group. Saudi Aramco from Dhahran will acquire 30% of the Lotos Gdańsk Refinery and the Hungarian MOL - 80% of Lotos gas stations. The EC assumes that this will allow to preserve a competetive fuel market in Poland, despite the largest merger in this sector in Poland’s history. What does it mean? The merger will lead to creating a corporation focused on energy transformation and investments supporting the Green Deal. The new group will invest even more in SMRs, hydrogen technologies, offshore wind energy and new gas power plants, but projects related to energy storage and electromobility will be remain to be important. This year PKN Orlen also plans to take over PGNiG, the largest Polish gas company, PGNiG. The consolidation will greatly impact the gas, oil and fuel markets, threatening interests of Gazprom and Rosneft in Poland. | Acording to the report published by PIE, the Polish Economic Institute, the data of Google and Facebook users in Poland was worth over PLN 6 billion in 2020. This estimation is based on the revenues, which both platforms have generated from the data of Poles, and the value that users themselves attribute to their data and online privacy. The incomes estimated by PIE significantly exceed those reported by tech companies for statistics and tax authorities in Poland. The report also indicates that the average Polish user expects monetary compensation for platforms’ access to all his or her data and the personalized advertisement display. 84% of respondents also believe that the activities of big tech companies should be subject to greater scrutiny. What does it mean? The report will provide Polish authorities with new points for criticism of the digital platforms, some of which are already under fire and subject to various planned national and international regulations. |
for more information: Aleksandra.Felczak@hkstrategies.com | for more information: Julia.Rozenbaum@hkstrategies.com |
DEFENSE | FINANCE |
During the last seating of the National Defense Committee, Defense Minister Mariusz Błaszczak was to answer questions about the military-related content leaked in the e-mails of Michał Dworczyk, Chief of PM’s Chancellery. Deputy Minister Wojciech Skurkiewicz, who came to represent Błaszczak, refused to respond to the questions of the opposition, saying “the MOD does not comment on information from Russian portals”. Chairman Jach unexpectedly and swiftly ended the Committee’s session, leaving MPs from the Civic Platform outraged. They accused the chairman of broking the bylaws of the Defense Committee's. What does it mean? The government has consistently refused to comment on the information disclosed in Dworczyk's e-mails, but important right-wing politicians, including Minister Jacek Sasin and MEP Patryk Jaki, have already admitted that their e-mails were real. Sadly, the seating showed that any meaningful discussion between the two sides seems impossible at the moment. | The average Polish investor has become more mature and experienced - data from the annual National Investor Survey show. The value of our investment portfolios has notably increased. In the past year nearly 40% of those surveyed declared assets exceeding 100,000 PLN. Poles increasingly invest in shares of foreign companies, ETFs or cryptocurrencies. Our investment horizon has also become longer - saving for retirement has become the main motivation point for a quarter of the respondents. What does it mean? The results of the National Investor Survey indicate the growing investment awareness of Poles and their openness to new assets. More investors has diversified their capital. A higher level of education and the further maturing Polish market should lead to greater popularity of alternative investments, such as digital assets or crowdfunding. This also means that financial institutions operating on the Polish market will feel more pressure to expand and modernize their offerings – including the WSE itself. |
for more information: Jaroslaw.Sutarzewicz@hkstrategies.com | for more information: Bartosz.Worsztynowicz@hkstrategies.com |
HEALTHCARE | RETAIL |
The Sejm Health Committee approved the draft law on the COVID verification system. Now the bill will be discussed at the plenary session of the Parliament. Its key point includes an authorization for employers to require their employees to show either a vaccination certificate, a negative test result, or their infection history. At the same time, government officials in the Prime Minister's office have met with the anti-vaxxers from the Law and Justice (PiS) parliamentary club. The MPs oppose the draft’s provisions, calling it ‘sanitary segregation’. Ryszard Terlecki, head of the PiS club, said after the meeting that both sides have stayed with their opinions but the conversation was ‘useful’. What does it mean? Such political activity can only be interpreted as legitimizing the anti-vaccination movement. Although the government declares its full support for vaccination, discussions with groups of MPs who deny the benefits of science and evidence-based medicine are concerning and incriminating for PiS. | Shops and ecommerce have summarized the Christmas season. In December online stores recorded huge sales increases – the number of transactions increased by 40%. December 13th turned out to be the best day in terms of sales. Even if customers did have to pay higher prices for many goods. ‘Rzeczpospolita’ daily reports that the cost of basic products to prepare a Christmas dinner for four people was 12.4% higher than a year ago. This is the highest jump since 2008. Higher prices were observed mainly in the product group of vegetables, but also with regard to flour, fish or vegetable oils. What does it mean? The rise in food prices has become clearly visible during the 2021 holiday shopping season. Prices grew faster for almost all food products. The cost of gas, electricity and raw materials needed for the production of cardboard and plastic packaging also went up. This has a direct impact on production costs and, consequently, on price calculations of many products, which may cause delays in deliveries of products to stores. |
for more information: Marta.Kubik@hkstrategies.com | for more information: Agnieszka.Kos@hkstrategies.com |
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