So far, Poland has been one of the last in the European Union in terms of the number of directives that have not been implemented on time. However, it has fared better in the statistic relating to the delay with which EU countries implement directives, averaging 11.5 months for Poland, compared to the European average of 12.6 months. This was revealed in an analysis by PwC Legal, based on data provided by the European Commission. Lawyers recommend that the new government as soon as possible adopt laws implementing the so-called whistleblowing directive and the European Electronic Communications Code, the implementation of which has been delayed for many months. In addition, they recommend that the new government start legislative work on three directives, which could significantly impact the value building for Polish business.
What does the harmonization of the Polish legal system with EU regulations mean for the economy? What was the implementation schedule of directives in Poland? What were the effects on domestic business, employees, and Polish consumers? And finally, how does Poland fare in this matter compared to other EU member states and what should be done on this subject in the near future? Despite this PwC Legal study containing a subjective selection of directives that we believe the new coalition government could take on first, the scale and scope of recommendations, in our understanding, should give the greatest and quickest benefit for businesses.
“We have focused on directives that regulate issues important for all entrepreneurs (regardless of industry), as well as important from the perspective of employees and consumers. In recent years, Poland has been obliged to implement directives into domestic law granting new rights to workers, introducing mechanisms to ensure more transparent and predictable working conditions and proposing solutions aimed at protecting consumers against unfair market practices. Poland, among the 27 EU countries surveyed, can significantly improve its position” – says Cezary Żelaźnicki, Managing Partner at PwC Legal and leader of business solutions in legal matters at PwC in the EMEA region.
The implementation of EU directives within the timeframe indicated is a challenge in all EU member states, and Poland is no exception. In Poland’s case, there is room for improvement particularly in terms of the number of directives that have not been implemented on time – as of 10th December 2022, Poland ranked 25th among the 27 EU member countries. However, Poland fared better in the statistic concerning the delay with which EU countries implement directives – the delay for Poland averaged 11.5 months, compared to the European average of 12.6 months. In most cases, the directives were not implemented on time, with identified delays in their implementation ranging from 1 month to almost 3 years, although Poland does not significantly stand out in this respect compared to other member states.
“Delays in the implementation of directives impact the organisation of all economic activity. On the entrepreneurs side, they often cause additional costs associated with preparing for the implementation of regulations and often short implementation deadlines, as well as the need to comply with different standards in relations with entities from various EU countries” – adds Aleksandra Bańkowska, Partner at PwC Legal.
Delays can also impact the attractiveness of investing in Poland for foreign entities.
“From the cases we analysed, it can be pointed out that on the one hand, legislative work should start well in advance, while on the other, it is worth noting that broad consultations with interested parties, which would then be reflected in the proposed regulations, would yield good results” – said Wojciech Trzciński, Partner at PwC Legal.
PwC Poland lawyers recommend that the new government as soon as possible adopt laws implementing the so-called whistleblowing directive and the European Electronic Communications Code. Their implementation has been delayed for many months, and the European Commission has complained about Poland to the Court of Justice of the European Union for this reason.
In addition, PwC Poland lawyers recommend that the new government commence legislative work on the following directives as soon as possible:
Directive on strengthening the application of the principle of equal pay for men and women for equal work or work of equal value – This act is a collection of regulations concerning equal pay issues for men and women for the same work or work of equal value, issues of prohibition of indirect and direct wage discrimination based on gender, transparency of wages, and more effective means of enforcing the right to equal pay.
DAC7 Directive, on administrative cooperation in the field of taxation – This would align reporting obligations of trading platform operators, helping to minimise the so-called “grey area” online.
Directive on copyright and related rights in the Digital Single Market and amendments to Directives 96/9/EC and 2001/29/EC (“DSM”) – The Directive aims to harmonise copyright in EU member states and regulate the rules for the use of works in the digital environment. The main beneficiaries of the reform are to be creators and publishers.
