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The change of power in Poland is also associated with hope for German companies. But the eastern neighbor is already an important economic factor – for example as a trading partner or export market.
The change of government in Poland with Prime Minister Donald Tusk sworn in today is raising hopes in German business for a more Europe-friendly policy in Warsaw. However, the neighboring country has already developed into one of the most important trading partners over the past five years. Hundreds of thousands of jobs depend on the relationships – on both sides of the Oder.
Fifth largest partner in trading
Poland is Germany’s fifth largest trading partner, ahead of traditional Western industrial nations such as Italy or Great Britain. In 2022, goods worth almost 170 billion euros were traded between the two countries. Germany exports primarily chemical products, machines, vehicles and electrical engineering – total deliveries totaled almost 91 billion euros.
Electrical engineering, motor vehicles and vehicle parts, machinery and food are particularly imported from the neighboring country. The total value of imports from Poland last year was more than 77 billion euros.
According to the German Chamber of Commerce and Industry (DIHK), the value of German direct investments in Poland is currently more than 41 billion euros. In return, Polish direct investments in the Federal Republic are estimated at over 2.3 billion euros.
Attractive as a location
In addition, according to the Foreign Chamber of Commerce, around 5,500 German companies are active in Poland. Most recently, they achieved a combined annual turnover of almost 100 billion euros (2021). At the same time, around 1,500 Polish companies are active in Germany – most recently generating annual sales of almost seven billion euros.
According to the Eastern Committee of the German Economy, Poland has been a highly attractive location for decades, especially for German industry, due to its EU membership, geographical proximity, well-trained and motivated workforce and dynamic economic development. This creates a lot of jobs: German companies employ around 450,000 people in Poland.
With a good 21 percent, Germany is both the largest supplier country for Poland, ahead of China, and the most important buyer country (28.6 percent). “Around 1.2 million jobs in Poland depend on German end consumption,” explained the chairwoman of the Eastern Committee, Cathrina Claas-Mühlhäuser. The Polish companies active in Germany employed around 10,000 people.
Business hopes for a “pacemaker for Europe”
The Eastern Committee with its around 350 member companies is now hoping for fresh impetus for business with Poland after the change of power. “With the arrival of the new Tusk government, we hope for a new upswing in bilateral economic relations,” said Claas-Mühlhäuser. The political tension of the past few years has led to uncertainty among companies. Now “the German-Polish economic engine” can “become the pacesetter for Europe” again.
Poland is an attractive investment location that guarantees short and safe delivery routes. Through a constructive dialogue between Prime Minister Donald Tusk’s new government in Warsaw with Berlin and Brussels, these strengths would once again come into their own economically. “We are already sensing increased interest from German companies in Poland,” emphasized the chairwoman.
With the swearing in of former EU Council President Tusk as Prime Minister, there is once again a pro-European government after eight years with the national conservative Law and Justice (PiS) party. For example, the year-long dispute between the EU and Poland over the controversial judicial reform and the allocation of frozen EU funds could end in billions.