It was the largest enlargement in the history of the EU. It made it possible to make up for the economic delay of the States of Central Europe falling behind the West. On May 1, 2004, ten states joined the single market. Since then, Poland has undoubtedly become the leader of this transformation.
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The 2004 enlargement saw Estonia, Hungary, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Slovenia as well as Cyprus and Malta join the single market. This accession brought about an unprecedented transformation of these states from Central Europe and the Baltic countries. And Poland ticks all the boxes.
Poland’s real GDP has doubled in twenty years
If in 2004, the wealth produced per capita in Poland represented only 49% of the average of European states, today it has reached 82%. And the country’s real GDP, that is to say calculated without taking into account inflation, has even doubled during this time. Only Lithuania was as dynamic. “ The delay taken by the states of Central Europe compared to Western Europe has been enormous. Filling it was the most important thing », specifies Marek Wąsiński, economist at thePolish Economic Institute (PIE) which publishes a rcontribution on the occasion of this 20th anniversary. “ A scenario was imagined according to which Poland would not have entered the EU. His wealth would in fact be reduced by 40% without this membership », notes the expert. Notable progress: the risk of poverty has been reduced by almost a third in the country.
The world’s second largest battery producer
The Polish regions that have benefited the most from the transformation are the capital Warsaw, the Masovian Voivodeship, located in the heart of the country, as well as Lower Silesia in the southwest with its main city Wroclaw. The sectors that are on the rise are: automotive, agri-food and the production of goods. Poland is the world’s second largest battery producer for electric cars after China, thanks to its South Korean partners, notably LG Energy Solution.
The country of 38 million inhabitants has been able to take advantage of European supply chains and has made the single market its leading export market. Result: Warsaw has the 6th GDP in the EU behind the Netherlands and ahead of Sweden and Belgium. Poland attracts foreign direct investment. In 2023, they reached the sum of 133 billion zlotys (equivalent to 30.9 billion euros), according to data from NBP, the country’s central bank. The benefits are economic, but also social, such as the improvement of living conditions, the reduction of poverty or unemployment, particularly in rural areas.
Read alsoThe 2004 enlargement, a model to follow for the European Union?
Warsaw could do better
On the other hand, the PIE economist deplores: “ The delay taken by the Poles in terms of high technology. Polish manufacturing of goods including these technologies would produce added value to our exports “. According to him, the Polish government should significantly increase spending on research and development. With this, the country’s energy transition is lagging behind. Coal still contributes 80% of Polish electricity production.
The EU strengthened against the United States and China
The benefits of this enlargement go both ways. Western states have found new markets in this part of the Old Continent. Thanks to dynamic growth in these countries, the return on investment is faster than in the rest of the EU. The eight states of Central Europe, including Poland, today contribute 8.5% to European GDP. “ Thanks to them, Europe is economically more powerful » against the United States and China, concludes Marek Wąsiński of the Polish institute.
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