Conclusions for Europe

CONCLUSIONS FOR EUROPE S U M M A R Y O F T H E 5 T H E U R O P E A N E C O N O M I C C O N G R E S S 2 0 13

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Dear Ladies and Gentlemen,

SUMMARY OF THE 5TH EUROPEAN E C O N O M I C C O N G R E S S 2 0 13

CONCLUSIONS FOR EUROPE IMPRINT

Publication by PTWP SA Group – organiser of the European Economic Congress Written by the editorial teams of the Nowy Przemysł economic monthly, the wnp.pl economic portal and other websites of PTWP Group.

Edited by Oskar Filipowicz.

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The fifth edition of the European Economic Congress is now behind us. During over one hundred thematic sessions and debates, we were looking, together with our Partners and Guests, for an answer to the essential European dilemma of the time of stagnation: How to step onto the path of economic growth again?

Due to the diversified circle of Participants, the complex and difficult situation of the European economy, as well as the open nature of our debate, we were unable to provide a unanimous answer to the question formulated in that way. However, the message flowing from this year’s Congress is clear enough: Europe needs a second wind – the regulations that encumber initiative and activity need to be removed and Europe needs to open up to the regions of the world that evolve dynamically and thus create natural space for the European knowledge, competence and technology.

The recent experience of the European countries has convinced us that economies enjoying a powerful manufacturing segment are the first to break out from the doldrums of crisis. A healthy and sustainable economy cannot be premised solely upon services.

Indeed, the European industry will have to be environmentallyfriendly and it should be innovative, but first it has to be given a chance in the form of easily accessible and relatively cheap energy.

In order to make that happen, we need to revise the European climate protection policy. Making it more flexible and incorporating such criteria as energy price and competitiveness into its doctrine, as well as balancing the environmental goals and the new pro-industrial policy – all these issues form the second group of key postulates of this year’s Congress.

Developing the conclusions from the Congress in the form of a report has become a good practice appreciated by the Participants of the subsequent editions of the Congress. It is of particular importance to us, the Organizers, that the main directions in thought on the future of Europe – pointed out during the debates – are kept alive and noticed in the public space after the event has ended, as well.

We achieve that goal through the publication which we offer to you now, as well as through the periodicals and services published

by PTWP Group. We are also supported by our partner media in this respect. We believe that our activity will help to solve the problems articulated during the 5th European Economic Congress and also to face the subsequent ones as part of the preparations for the sixth edition, which we would like to invite you to take part in today.

Cha i rma n of t he B oa rd, P T W P G ro u p, I ni t i ator of t he Eu rop e a n Economi c Con gre s s

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Freedom and equilibrium The opening of Europe to the world, an appeal for more economic freedom and for balancing the climate protection policy with the industrial policy, as well as a demand for development based on knowledge, cooperation and integration. These are the most expressive and explicitly formulated demands that emerged during the fifth European Economic Congress.

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he still difficult economic situation in Europe, along with its severe social consequences and its influence on politics, impels people to polarize their stances.

During this year’s edition of the European Economic Congress, as usual, we observed clashing views, for instan-

ce by reason of a wide and diversified circle of debaters. Some issues tended to appear in a particularly expressive manner. Then they were repeated in many alternative versions and counted among the most frequently quoted and discussed ones – it was these issues that determined the nature of the Congress.

An undoubted event of the day during this year’s edition was an informal, but interesting economic summit attended by the Ministers of Economy of the Visegrád Group countries. That circle was complemented by the Minister of Economy of Romania, who emphasized the aspirations of his country to become a member of the Group.

fo to : a nd r ze j wawo k . co m , Pi o t r Wan i o re k , Pawe ł Pawł ows k i , S z y mo n Ja nk ows k i / Że l a z n a St u di o, mate r i a ł y p ra s owe, fo to l i a

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EEC 2013 – numbers and facts

100

700 panellists

sessions, meetings and accompanying events

in 11 locations

6000 participants

Where to search for some new catalysts for economic growth in Europe effectively? What can be the factors for shaping the competitiveness of the European economy?

Is the European post-crisis “rebound” favoured by wider economic cooperation within Central Europe, as well as by the active role of C ONCLUSIONS FOR EUROPE

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newspapers and electronic media that provide coverage of the Congress

the Visegrád Group states in the European Union?

These questions were posed by both the organizers and the participants of the sessions that took place on the first day of the Congress. As usual, it was these debates that delineated the area of discussion for the subsequent days of the Congress.

More liberty!

Freeing the European economy from the excess of regulations that encumber initiative, creating an appropriate climate for entrepreneurship (both at the level of the European Union and at the national level), the new pro-industrial policy, and cooperation and solidarity in coping with the

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challenges of the time of economic stagnation – these were the basic demands made by the Ministers of Economy of the Visegrád Group. During the briefing, they confirmed their willingness to cooperate according to the slogan “Together, we will do more.”

It will be difficult for Europe to cope with stagnation, having currently focused on its own problems and being hindered by a burden of limitations and bans, by the policy that further burdens its economy and by a defective free market, as well.

It turns out, however, that stagnation might be even more dangerous than a severe crisis because it makes us get down to the preparation of indispensable reforms too slowly. Thus, an atmosphere of passivity and torpor becomes established.

The dimension of a new rivalry and competitiveness – both within Europe and on a global scale – will form based on the ability to cooperate at various levels. The point is that the countries that follow a similar path of development, similar conditions for it and concurrent ambitions (e.g. countries of Central Europe) should both ensure the cooperation between science and industry and face common challenges (in the fields of infrastructure and politics).

In order to take advantage of its potential, Europe needs deregulation and an opening to the new markets – that was the conclusion from the meeting of the Ministers of Economy of the Visegrád Group, which took place on the first day of the Congress.

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Quite paradoxically, the crisis might be a good time for releasing the brakes of the over-regulated European economy. It is so at the moment because when governments, communities and enterprises search for a recipe for economic growth, one could count on the acceptance of the withdrawal from bothersome limitations, even when more liberty would mean a withdrawal from certain privileges due solely to the European structures and systems.

Among the particular solutions proposed by the panellists of the Congress in order to limit the European “regulation omnipotence,” the UE+0 rule is worth mentioning. According to that rule, each provision should be analysed against being required by the European Union or not and if so, it should be further determined whether the said provision had been “enriched” by the officials of a given EU Member State.

The rule accompanying the development of any new legal solution should be the question of the effect that this new solution would have on the economy.

During the debates, many examples of regulations that hinder economic development concerned energy – a sector of the utmost importance to the whole European economy, burdened with legal requirements and restrictions that had accrued for many years, as well as with an unstable system of grants, preferences, limitations and other factors that disturb the free market.

We were warned that the over-regulated economies of Europe will not withstand the competitive clash with other economic systems that are business-friendly and the growth of which is supported by relatively cheap energy (e.g. the USA). A demand was made to restore the rule that used to be well-known and alive in the European countries which have undergone the free market political transformation in the past quarter of a century – “In the re-

alm of the market, all that has not been prohibited is allowed.” We were reminded that politics should serve the people and the best way to achieve that goal is to serve the economy.

Let’s open the window!

Freedom requires space – also in the sense related to the investment expansion and the creation of new global economic projects, at least outside Europe. Meanwhile, the inwards-oriented Europe stricken with the syndrome of infecting subsequent countries with the virus of crisis, has to search for new markets, in order to open the window and let some fresh air into the economy.

– Go Global! – this is the slogan of the Congress that refers to the necessity of a political and economic opening of Europe to the global markets marked by the fastest pace of growth – first of all, the African countries. Such an opening is urgently needed in the time of slowdown and stagnation.

The intense interest expressed in the events of the first Africa – Central Europe Economic Cooperation Forum is a good omen. During the sessions of the Forum, some important statements were made about the following issues: the necessity for partnership, the breaking of barriers and stereotypes through knowledge and relations, the areas of possible cooperation and Africa’s potential for development.

In a world afflicted with economic slowdown, the most dynamically evolving region is Africa. Prospects for the forthcoming decades for this part of the world indicate economic growth at a level that would exceed 7 per cent a year. The demand for African raw materials, the improving conditions for investors and increasing management standards are deciding factors for this unusually fast growth rate.

Both coasts of the Mediterranean Sea share the need for the creation of new jobs and Africa is a promising

market due to its population and demographic issues (over 50 per cent of the inhabitants of Africa are under 30).

The African middle class evolves and as a result, there are growing needs and the consumption of more technologically advanced and quality goods or services also increases.

The potential and growth rate do not mean that there are no problems in Africa. The growth is still limited to few groups only. Many members of the societies live in extreme poverty and there is lack of prospects for the young inhabitants. However, the African continent witnesses an increasing political stability that favours solving problems.

Europe discovers Africa anew, but – as some people warned us – it occurs too slowly and too late. Europe, which perceives Africa as both a chance and a challenge, has to make up for lost time and organize itself. Economies and politicians of the countries of Western Europe also have to overcome the limitations and prejudices related to the colonial past. Admittedly, the countries of Central and Eastern Europe are free from these associations, but they have less potential and “bargaining power” of capital at their disposal.

We were warned, however, that Africa cannot be treated as an output market or an area for expansion. We need a new partnership that would aim at the development of African countries and societies, simultaneously creating new possibilities for the European industry. An economic cooperation that would be profitable to both parties needs to be separated from the operations related to humanitarian aid.

By contrast, the next edition of the economic forum on the cooperation between China, Europe and Poland was of a different nature. The debates revolved around both the overriding strategies and particular undertakings, as well as around the role of politics in the creation of economic cooperation.

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The immediate period will be crucial for defining the relations between Europe and China. The participants of the session described China as a dynamic country that begins to promote sustainable growth instead of fast economic growth; China ceases to be perceived solely as a large manufacturer – the world begins to perceive it as a gigantic market, as well. The emerging Chinese middle class that counts around 350-400 million people can become a target group for the European consumer goods manufacturers.

Expressing their interest in the global subject area, the guests of the Congress emphasized the highly representative nature of the participants of both forums. Indeed, the group of panellists included the representatives of economic organizations, institutions and governments of the most dynamically developing countries of the African continent, as well as Chinese decision-makers responsible for multi-million investments.

The Eurozone anew The debate on the new catalysts for economic growth in Europe also encompassed the threads related to the transformations of the Eurozone, as well as a vision of the target shape of the EU political system (a vision, to which such a topic inevitably leads).

For the last few years, the arguments for and against entering the Eurozone have not changed in substance. The weight of arguments is similar. The sup-

Europe discovers Africa anew, but it occurs too slowly and too late.

Europe, which perceives Africa as both a chance and a challenge, has to make up for lost time and organize itself.

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port for the Euroland remains high – in spite of the crisis and the high unemployment rate. The Eurozone turns out to be particularly favourable to small and open economies that heavily depend on the economy of the European Union, e.g. Baltic countries and – what has been proven in recent years – Slovakia, as well.

However, the future of the Eurozone will depend mainly on the determination of its members, as well as their willingness to accept changes and make compromises. The components of the new political system of the Eurozone have already begun to emerge. They favour stabilization and development – the European mechanism of economic stabilization, bank union and fiscal union.

The bank union is a logical response of the EU to the crisis. For the time being, it has been agreed to constitute the European banking supervision; the subsequent stages of the bank union still need to be discussed – the point is that there should be a common bank failures mechanism and a pan-European deposit guarantee system. What is important – we were warned during the Congress – is not to over-regulate the financial sector while implementing these actions and thus not to adversely affect the economic growth of the EU. In the course of these actions, an underlying dilemma emerges. The Eurozone must choose between the model of the centralized United States of Europe, which also means creating a fiscal union, and a weak central institution equipped, however, with tools that force particular behaviour of the Member States – e.g. public accountability for debt or the introduction of reforms. The most profitable option would be a compromise between these extremities.

A climate for investments The future of the climate and energy policy and the perspective of the

emergence of a common free European energy and energy carriers market, as well as the chances of creating a new industrial policy of the EU formed an important and extensive thematic block of the Congress, absorbing several dozen panellists in several debates in total.

The political decisions made at the level of the European Union translate into enterprise strategies, thus rendering the investment decision-making in energy an extremely difficult process. Investment stagnation or administrative favouring of specific energy sources threaten us with a future defined not only by energy shortage, but also by deep changes in the structure of European energy, which have already disturbed the operation of electrical power systems in some regions of Europe. The lack of investments in new energy powers is another factor that perpetuates stagnation.

The energy sector expects the politicians from Brussels to ensure predictability and permanence of political decisions or regulations. It is so because modifying them too often creates unfavourable conditions for the planning and stability of investment.

From the perspective of large investors

– it was emphasized during the EEC – the individual countries of the European Union are relatively small markets. Therefore, the point is to create not only the European energy market, but also the European energy investments market.

During the Congress, we were repeatedly asked to search for balance between energy security and environmental protection. The economic crisis has contributed to an increase in awareness of how important energy prices are for the future of economy and how vital is the selection of means that the European Union may use in order to become the world leader in the struggle with climate change.

However, the crisis of climate and energy policy that becomes depicted in the light of criticism originating from industrial circles, among others, does not mean the end of it, but rather the necessity to redefine and revise its costs and its influence on the economy, in order to make it more realistic The need for reaching a new agreement on the energy and climate policy of the EU was articulated from various stands – such a revision was discussed not only by the representatives of industries burdened with the costs of CO2 C ONCLUSIONS FOR EUROPE

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emissions, but also by the politicians engaged in environmental protection.

The question of how to form the necessary compromise between the restrictive CO2 emissions standards and the threat of shutting down conventional power stations or – in broader terms – the deindustrialization of our continent, still remains open. The debate on the shape of the European energy market and the climate and energy security of the content has not withered yet.

The ostensible or actual crisis of the climate and energy policy does not mean the end of it. Instead, it rather means the necessity to redefine and revise its costs and influence on the economy, in order to make it more realistic.

The new elements in this debate are price and competitiveness. The rooms of the Congress have produced an appeal to make the ambitions related to the climate protection policy correspond with the possibilities of individual countries, the specific character of their economies and the structure of the energy sector, in order not to bring the threat of going out of the international economic competition on the European economy.

Energy and competition The common energy market of the European Union may provide Europe with several benefits at the same time: security and stability of energy supply, the possibility of achieving the goals related to environmental protection at a relatively low cost and energy prices that would not limit economic activity.

However, the development of the energy and energy carriers market depends on common initiatives, such as the construction of cross-border gas, oil and electrical power connections, the introduction of a consistent European legislation or the harmonization of RES support systems. Creating the energy market of the European Union is not an easy task, of which we are re-

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minded by such phenomena as delays in the creation of regional markets that are intended to consolidate into a single mechanism in the future.

What are other basic goals of the energy policy of the European Union?

Investments stimulation (particularly in the case of transmission networks), affordable energy prices and supply diversification.

Undoubtedly, the awareness of the necessity of formulating a common EU policy with regard to the issues of oil or gas supply security and diversification grows, as well. However, there are still many divergent national interests to overcome – which is conspicuous, for instance, in the case of cross-border pipelines and the role of Russia in the pool of supply to Europe.

Europe still depends heavily on the import of fuels and resources. It is important to decrease this dependence, using less water, energy and resources.

However, such a self-limiting demand does not have to mean and even should not mean a regress – quite the contrary, it is because of that demand that the competitiveness of the economy is expected to increase, which would allow us to stop the modern industry and manufacturing in Europe.

The competitiveness of the economy and the security of energy and energy carriers supply need to be perceived in

The energy sector expects the politicians from Brussels to ensure predictability and permanence of political decisions or regulations.

Modifying them too often creates unfavourable conditions for the planning and stability of investment.

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a new, global context. The shale gas price for the industry in the USA is three times smaller than the price in the European Union and the cheap gas from overseas has already begun to change the global energy market. The planned alignment of the economies of the USA and the European Union makes the importance of these issues grow.

Europe also has rich unconventional gas deposits. Time is pressing, but the European Union – as a result of the divergence of attitudes of its Member States (environmentalism still remains the major background for the dispute) – did not establish a unequivocal strategy for the extraction of shale gas that would encourage investors to become more active.

However, Europe perceives coal as the most controversial among all energy sources. In the past 20 years, the global production of coal increased by 68 per cent, whereas in the European Union it decreased by 22 per cent.

During the Congress, the need was signalled for some pan-European solutions that would aim at equalizing the chances of coal from the EU and the chances of the non-EU coal: an appeal was made to define the climate policy as anti-emissions instead of anti-coal.

This year’s Congress was not the first edition, during which the idea of a cleaner and environmentally-friendly use of coal was strongly articulated.

Moving the branches of traditional industry (such as metallurgy) beyond the borders of the EU threatens to result in a loss of numerous jobs, making Europe dependent on foreign suppliers at the same or even higher level of global CO2 emissions. What clearly follows from the debates of the Congress, the European Union has already noticed that trap. There is increasing talk of the necessity of establishing a wise consensus on the competitiveness of the European economy, its innovativeness, environmentalism and the level of employment – in the context of the reindustrialization of Europe, which

has already been discussed in public before. The revision of the climate protection policy should be accompanied by a new industrial policy.

Growth, knowledge, cooperation Transport, local authorities and metropolises, metallurgy and the steel market, commercial property sector, finance and management – in all these fields the panellists of the Congress identified some anti-growth barriers in search of new chances for development.

It is no accident that the main points of the “Europe 2020” strategy, serving to propel economic advancement and the development of civilization in the EU, included smart growth, that is growth based on knowledge and innovations. According to the estimates recalled during the Congress, the implementation of pro-innovation programs and the annual expenditure of 3 per cent of the GDP of the European Union to research and development will result in creating up to 3.7 million jobs until 2025 and the GDP is to increase by almost 800 billion EUR a year.

The efforts of the European Union aim at regaining the position of the glo-

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bal leader in scientific research and innovativeness. Priority is given to the cooperation between science and industry, the commercialization of scientific research and the new technologies, such as photonics, information and communication technologies, micro- and nanotechnology and biotechnology, as well as advanced manufacturing systems.

The EU also attaches great importance to bringing social innovations into effect – they concern health, the consequences of demographic changes, social and food security, sustainable agriculture, marine research, green economy, intelligent transport or efficient energy management.

Development understood in such a manner emphasizes the role of the

civil society and requires increasing the pool of tasks, as well as the importance of local authorities. In the next few years, it will be of particular importance for local authorities to spend the EU funds responsibly within the new budget framework, in order to serve innovations funding and create new jobs in a closer connection with external funds (bank credits and private funds). The creation of effective regional undertakings, where the competition between local authorities would be replaced by synergy and cooperation, is also an issue.

An intensive and well-thought-out development of transport infrastructure is also to serve the growth and integration of the European Union.

In the next few years, the institutions of the EU will put particular emphasis on the role of the railway. The development of routes outlined in the transport policy of the EU during the implementation of its environmental goals requires efficient planning on the European level and integrating national plans into a system that would be profitable to the whole continent, as well as contributing capital to the most important investments from the EU budget.

The European Economic Congress means people in the first place – from EU Commissioners to Ministers and global business creators to the representatives of science, the structures of local authorities and innovative entrepreneurs. They all contribute to an atmosphere in which it is possible to formulate thoughts, draw conclusions and determine the trends that are to define the future of both Europe and the European economy.

On the subsequent pages you will find a selection of the most interesting utterances that illustrate the message of the 5th European Economic Congress.

Wn i o s k i d l a E u r o p y

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Jerzy Buzek – Member of the European Parliament,

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Martin Kuba – Minister of Industry

former President of the European Parliament

and Trade of the Czech Republic

– It has turned out recently that sometimes stagnation might be

– The current EU policy is anti-industrial. Energy has been

more dangerous than crisis. In stagnation, one tends to get down

deprived of market development conditions. Without a return

too slowly to the preparation of reforms that are indispensable.

to the industry, Europe will begin to lose its importance.

It is of particular importance to us to keep the point of contact

Having our own manufacturing base at our disposal, we are

between politics and business clearly defined and transparent, as

able to better care for jobs. It is also easier to get through

well as intense at the same time. The aim is to prevent occasional

the crisis. A return to the pro-industrial policy would be very

incidents from making us stop contacting each other. We are

reasonable, but it requires a very serious debate on energy

glad that all entrepreneurs are present during the European

and environmental protection, as well as technical education

Economic Congress. I speak here of those who represent both

and the use of EU funds. Without it, all will end at the stage of

the largest companies and smaller enterprises. Together, we are

theses – with no implementation. The decisions concerning

all to create the essentials of a well-functioning Silesian, Polish

the environment need to be looked at from the perspective

and European economy.

of the national economy, as well as from the perspective

The point is that we aim at competitiveness and growth. There

of maintaining attractive jobs and creating a competitive

can be no growth without competitiveness. We need structural

product. (...)

reforms and the stabilization of public finance. Manufacturing

If Europe does not return to the spirit of entrepreneurship and

should be given priority over services. It is equally important to

does not abandon the faith in the omnipotence of regulations,

provide cooperation at the national level between individual

we will still be treading water. The European potential resides

divisions of the economy and the cooperation within the

in entrepreneurship and not in the regulatory activity of the

European Union.

EU officials. Let’s leave some space for economy!

Tomáš Malatinský – Minister of Economy of Slovakia

Janusz Piechociński – Deputy Prime Minister

– It is important for Europe not to take precipitate actions and

of the Republic of Poland, Minister of Economy

our ambitions have to correspond with our capabilities, so that

– During our talks, we have also summarized the Polish

we do not bring the threat of going out of the international

presidency in the Visegrád Group. During the last half-

economic competition on us. That is why it is so important to

year, we managed to agree on some important issues.

assess our abilities. When we save up public funds, there are

Owing to a closer cooperation, we can also benefit from

some outcries about the pace that we impose being too fast. The

competitiveness. What is important, among other things, is

same reservation refers to other processes being implemented

the cooperation along the North-South axis.

in Europe and concerning finance deficit or the environmental

I would like the forthcoming election to the European

policy. The truth is that we cannot allow ourselves to lose control.

Parliament not only to be an election of particular persons,

Just as with safe driving, we have to match the speed and the

but also an election of good scenarios for our economies and

external conditions, as well as our capabilities as drivers.

societies, in the first place. Indeed, together we can do more!

fo to : a nd r ze j wawo k . co m , Pi o t r Wan i o re k , Pawe ł Pawł ows k i , S z y mo n Ja nk ows k i / Że l a z n a St u di o, mate r i a ł y p ra s owe, fo to l i a

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Mihaly Varga – Minister of National Economy of Hungary

Varujan Vosganian – Minister of Economy of Romania

– We do not have one, simple cure-all for the European

– I hope that Romania will be taking part in the meetings of the Visegrád

problems. We rather see the need for complex actions – just

Group in the future. The Visegrád Group states plus Romania should develop

as it occurs in our country. In 2010, the economic situation

a common stance concerning the economic policy and present it then in

of Hungary was difficult. The government decided to focus

Brussels. We have to closely cooperate with one another, in order to create

on the reduction of debt and the improvement of the of the

a brotherhood for the protection of our industry and our employees.

GDP growth rate. We strived to invert the unfavourable trends.

Financial data prove that discipline has already borne fruit in the form of balancing the situation and Hungary manages increasingly well in terms of economy. We strive to make better use of the EU transfers, in order to stimulate growth.

We focused on facilitations in employment, including the reform of the tax system that was implemented in order to decrease the tax burden imposed on entrepreneurs, as well as to increase the competitiveness of manufacturing. Together with the Central

Janusz Lewandowski – EU Commissioner

Bank, we developed a programme aimed at creating more

for Financial Programming and the Budget

business-friendly conditions for granting credits. Living in Central

– The calls for European funds can be heard everywhere. There is shortage

Europe, we know that commercial banks that operate in our

of this type of money in Europe, both at the regional level and at the

regional market, having their headquarters in Western Europe,

national level. That is because the European elites have to pass the exam

tend to solve their own problems in the first place.

and provide us with the expected investment predictability for the subsequent years.

Prof. Jerzy Osiatyński – Advisor to the President of the Republic of Poland

Małgorzata Kołakowska – Chairman of the Board, ING Bank Śląski SA

– The assumptions accepted before, now have become

– Although much is being said about the new energy projects, not many

disproved. For instance, the assumption that the cost of

of them are being implemented. Such a situation results from the lack of

lending money will be smaller – it is no longer true. Apart

a unequivocal energy policy and regulatory stability or the variability of

from that, a high value of economic growth would have been

concepts concerning the energy mix. One of the graphic examples here

expected after entering the Eurozone. That proved false, as

is Germany which focused on wind energy and withdrew from nuclear

well, for our economy developed better outside the Eurozone

energy. Now, we can speak of a certain renascence of energy based on

than the economy of the Euroland did. In respect of that, we

traditional coal sources. To put it in broader terms – one should not make

have to find answers to several questions before we can make

any generalizations with regard to the crediting policy of the banks. If

our decision. Why did the countries of the Eurozone develop

a project proposed by a given enterprise is well-prepared, consistent and

slower than the countries outside it? What do we need to do

conforms to its strategy, then financing is still available. Of course, we have

before entering the Eurozone? And finally: What should we

to take into account the conditions in which we operate. Allowedly, some

do after accepting a common currency, in order not to find

industries are more risky than others. Such a situation is also related to the

ourselves in the same situation as Greece or Portugal?

availability of credits.

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Maciej Witucki – Chairman of the Board,

Horst Köhler – former President of the Federal Republic of Germany

Orange Polska

– Something has changed in the economy of that continent. At present,

– The Euro has proven well. It has contributed both to

Africa is the leader of growth. Moreover, the continent has the potential

the development of the German economy and to the

of becoming the new pole of global economic growth in the subsequent

strengthening of its export, as well as to the rescue of the

decades. The African Union is there and the concept of its operation is

economies of Greece or Cyprus. Would Italy incur smaller

based on democracy, the rule of law and cooperation. What we need is

debt if it was in ITL instead of EUR? No, it is just that the

a new partnership for the development of Africa.

problems of the Eurozone overlapped with the unsolved issues of structural reforms in individual countries.

Considering the dynamic development of Asian and African countries, the debate on whether to accept the Euro makes no sense. The chances of development of smaller economies with a weaker but own currency are gone; therefore, Poland needs a long-term project of entering the Eurozone. We need to continue our integration with the EU and regain social trust in the

Andris Piebalgs – EU Commissioner for Development

project of the Euro, as well as in the project of the

– Africa is a continent marked by the highest potential for growth. The

European Union. Politics poses a major threat to the

question is how to convince our investors to become involved in African

Eurozone. The path has been opened for populists of

projects. We see that our political stability increases and our economy

various types, who can, however, seize the power in the

develops. We have limited the risks in Mali and the problems in Somalia.

forthcoming election and effect a breakdown, not only of

The situation is improving.

the common currency, but of the whole EU.

Europe discovers Africa anew. We have to look forward instead of looking back into the past. This is a historic chance. Both coasts of the Mediterranean Sea share the need for the creation of new jobs. Africa is a promising market due to its population. The middle class also evolves and wants to consume. Africa can also offer much to Europe.

Matti Vanhanen – Prime Minister of Finland between 2003-2010, Managing Director of the Finnish Family Firms Association – If we had various currencies in such a large club as the European Union, we would not be able to help weaker

Jan Kulczyk – Chairman of the Supervisory Board,

countries, e.g. Greece. The creation of a common currency

Kulczyk Investments

was truly sensible. Since we have a common market, we

– We, Europeans and Americans, have lost the right to educate the world

should also have a common currency. How would the

on how it should look like. We have brought the crisis to the world. Many

economies of the United States or China look like today

facts also indicate that we have overlooked the boom in Africa. However,

if they had various currencies there? As a representative

it does not mean that we should not become well-known there.

of the Finnish Family Firms Association, I can say with

It saddens me that the debate concerning the European economic

full conviction that one common currency is better for

involvement in Africa takes place 10 years too late. Today, it is Europe that

conducting business activity than 27 separate currencies.

needs Africa, not the other way round.

IDE AS

Elham Mahmood Ahmed Ibrahim – Commissioner

Christophe Joseph Marie Dabire – Commissioner

for Infrastructure and Energy of the African Union

of the West African Economic and Monetary Union

– The aim is not to expect Europe to do something for us, but to do

– African countries will tend to associate to form larger

something together. There is a huge potential for cooperation and

organizations, so as to be able to compete with others in the global

the four major areas of cooperation are: industry, mining, renewable

markets. We have already created an organization of eight countries

energy sources and agriculture, as well as the issue of food supply

connected with one another by a common currency and customs

protection related to the latter. We need 37 thousand kilometres of

union. I think there will be more such organizations in Africa. It is

modern roadways and a similar number of kilometres of railways. Some so because we want to count in the competition on the markets new hydroelectric plants should also be built. Both the chances for

worldwide and we know that by ourselves we would never mean

cooperation and the needs for investments are huge.

as much as we do by acting together. Our Union implements programs that are similar to the ones known in the European Union. We have a common agricultural and energy policy. We also implement large infrastructural programs together within the scope of roadways and railways construction.

El Hadji Malick Gakou, Minister of Commerce and Industry of the Republic of Senegal between 2012-13 – The African economy grows at an average rate of 6 per cent a year. On the other hand, however, as much as 30 per cent of this growth is fuelled by the extraction and export of raw materials. That is why the crisis in the

Janez Potočnik – EU Commissioner for the Environment

raw materials markets causes considerable economic troubles. Africa needs

– The present goals of the European Union, which predict

a broadly defined development of other fields of economy, as well.

a 20-per cent reduction of CO2 emissions by 2020, as well as an increase in energy efficiency by 20 per cent and a 20-per cent share of energy coming from renewable energy sources, absolutely do not mean the end of challenges. It is just the first step to achieve our goal, that is low-carbon economy.

During the lifespan of just one generation, the population of the world increased by around 2 billion people. It is more than the number of people who inhabited the whole planet Earth 200 years ago. We have to manage our planet and our resources

Gao Xiqing – President, China Investment Corporation

in a different way than we used to until now. Not only do we

– Everyone speaks of stagnation and crisis, whereas Poland is a star

have to limit emissions, but also we have to care for safety and

that shines in the slightly paler European background. There are certain

the protection of biodiversity. The prices for resources increase

regulations in your country, which are important for investors and which

regularly. 57 per cent of the European enterprises predict that

other countries lack. Today, all people strive to defend their own backyard

this trend will hold for the next five years. Europe still depends

and they are not particularly fond of unfamiliar persons, whereas Poland

heavily on the import of fuels and resources. Therefore, it is

welcomes them with open arms. We are investors who represent a state

important to decrease that dependence. We have to use less

fund. Since the very first day, we have assumed a rule that we will invest

water, less energy and less resources, in order to increase

small amounts in everything, however not exceeding 10 per cent of funds

competitiveness in this way, which will help to keep the industry

in general in each industry.

and manufacturing in Europe.

C ONCLUSIONS FOR EUROPE

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EUROPEAN ECONOMIC CONGRESS

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Pierre Buhler – Ambassador of France in Poland

Jarosław Zagórowski – Chairman of the Board, JSW Group

– Taking into account the number of states that keep going to

– The European Union palpably rejects coal. It is worth considering

the European Union cap in hand, it seems that such a model

whether the notion of decarbonization means eliminating coal or

is steel deemed very attractive. At present, these are eight

carbon dioxide from the economy. Polish energy does not want coal and

states. While conducting negotiations with the potential new

it can be easily observed.

members, the emphasis is put on reforms and openness. The

I do not know of any documents that would support Polish coal. What is

European Commission has to stay alert before it allows for the

being supported is RES and gas. Except that our gas in the installations

accession of these states; the pace the EU expansion cannot

for industrial plants remains unsupported and the gas coming from the

outstrip the merits.

Russian pipe enjoys full support. Therefore, the government, as well as some local authorities, do not want coal. That is why it seems there are no prospects for the development of mining in Poland. However, the question remains: Will we be able to maintain our holdings in mining in Poland, considering the import?

Herbert Wirth – Chairman of the Board, KGHM Polska Miedź – The acquisition of the Canadian “Quadra” mining company has been the largest foreign transaction ever conducted by a Polish company. By achieving that, we wanted to increase the value

Aleksander Kwaśniewski

of our company, simultaneously expanding its raw material

– former President of the Republic of Poland

resources and decreasing the probability of a hostile takeover.

– We need a broader view. We should diversify it in economic terms,

Considering the goals formulated in such a way, conducting

however it does not mean that we will abandon our cooperation within

such an operation in Poland would be impossible. In order to do

the European framework. Instead, we should change our attitude and

so, one would need a potential, that is raw materials which are

free ourselves from the stereotypical perception of Africa. The priority

unavailable neither in Poland nor in Europe.

of the Polish policy should be the opening to the new economic and political centres, including Africa.

Marcin Korolec – Minister of the Environment of the Republic of Poland

Paweł Olechnowicz – President, Lotos Group

– The climate and energy policy will be redefined and made

– We should pursue one common policy in Europe, but the stronger

more realistic, as well as more business-friendly, but it will also

companies pursue their own policies and do not support the weaker

have to be considerably cheaper. It would be worth it if Poland’s

part of the EU. In my opinion, it would lead to the breakdown of the

presence was felt more clearly at this moment of change.

European Union instead of the development of one common organism.

IDE AS

Pavel Šolc – Deputy Minister of Industry

Krzysztof Kilian – Chairman of the Board,

and Trade of the Czech Republic

PGE Polska Grupa Energetyczna

– Inasmuch as the debate on the climate and energy policy of the

– The climate and energy policy accepted in 2009 requires

European Union has centred around the problem of climate change

a thorough debate because its priorities have not changed in

and the protection against its results in recent years, at present

substance, but the issue of how we perceive them today is also

there is increasing talk of the issue of competitiveness. Markets

important. Perhaps we need to specify the basic goals once

become more and more integrated, the wholesale prices plummet

again, in order to ensure the energy security at a minimum cost

and simultaneously the energy prices for end-users increase. That

for the economy.

undermines competitiveness. Therefore, we have to set our goals that we plan to achieve after 2020 very carefully

Pavel Cyrani – Strategic Director, ČEZ Group – The Asian market is marked by high energy prices and low Petra Lundström – Vice-President Corporate R&D, Fortum

labour costs. In the USA, we have high labour costs and low

– The energy sector will keep changing, thus pursuing the goal of

energy prices, in turn. By contrast, in Europe there are both

replacing fossil fuels with energy coming from renewable energy

high labour costs and high energy prices. In a medium term,

sources. Many countries outside Europe invest in RES on a large scale.

we will not be competitive, unless that situation changes.

It occurs in such countries as the Unites States, in spite of the ongoing revolution initiated there by the industrial utilization of shale gas, and Australia, which has copious resources of coal at its disposal, after all. There is no contradiction between the competitiveness of the economy and the modern technologies in the field of energy. Their prices will keep plummeting.

Filip Thon – Chief Executive Officer, RWE Polska; Member of the Board, RWE East – Energy needs a balance between the security of supplies, the competitiveness of energy sources and environmental protection. I also think that this triangle has already transformed into a rectangle because social and political Dariusz Lubera – Chairman of the Board,

acceptance becomes the most important factor. Let us take

Tauron Polska Energia SA

the acceptance of nuclear energy in Germany as an example.

– At present, there is no predictability longer than a dozen years in the

It is at this point that I think the balance gets slightly out of

electrical power sector. That is the basic issue which should be solved

our control.

both in the EU and in Poland. Apart from that, Europe should separate the energy security policy from the sole climate and energy package.

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EUROPEAN ECONOMIC CONGRESS

2013

6000 participants

200

newspapers and electronic media that provide coverage of the Congress

Debates and meetings There is more to the European Economic Congress than just debates.

The value of the Congress is also due to the unscheduled lobby meetings and individual relations established during numerous accompanying events, banquets and briefings.

100

sessions, meetings and accompanying events

in 11 locations

700 panellists

Each year, the Congress arouses the interest of the media – the coverage of the events is provided by teams of reporters from several hundred editorial offices. That is why some meetings take place in the spotlight, whereas some are of a private nature; some of them remain social events, but there are also some meetings that bear fruit in the form of real business actions.

The Organizers always allow the Participants some latitude in the tight programme of the Congress and the Guests, who highly appraise the atmosphere of the Congress, are able to make the most of that extra time.

Wn i o s k i d l a E u r o p y

2013

www.eecpoland.eu