Poland Is Catching Up with the EU: Membership Has Accelerated Development by a Decade

ECONOMYPoland Is Catching Up with the EU: Membership Has Accelerated Development by a Decade

Opinions are increasingly appearing in public debate that Poland’s membership of the European Union costs too much. Most economic studies, however, show a strong positive impact of European integration on the Polish economy. Without EU membership, the country’s level of development would be significantly lower. This is not only about access to EU funds.

Over 22 years of Poland’s presence in the European Union, the country’s economy has undergone a major transformation. In 2004, when Poland joined the EU, Polish GDP per capita, measured in purchasing power parity, amounted to around 50% of the EU average. Today, it is approaching 80%. Poland has therefore significantly narrowed its development gap with the EU average in a relatively short period of time.

One of the factors driving the Polish economy has been EU funding. According to data from the Ministry of Finance, from 1 May 2004 to the end of 2025, transfers from the EU budget to Poland exceeded €268.5 billion. Over the same period, Poland paid more than €100.5 billion into the common budget. As a result, the net balance of benefits amounted to around €168 billion.

European cohesion policy funds have been particularly important, accounting for around 63% of the money flowing from the EU to Poland. They strengthen public investment by financing projects that develop infrastructure, including the expansion of motorways, roads and railways. Cohesion policy funds are also used to provide direct support to the manufacturing sector, stimulate innovation and develop human capital.

According to analyses by the Ministry of Funds and Regional Policy, in 2004–2023 around 5.5% of Poland’s average annual GDP growth resulted from projects co-financed by these funds. During that period, Polish GDP grew at an average annual rate of around 3.9%. Without European cohesion policy funds, this growth would have been around 0.2 percentage points lower, at approximately 3.7%.

The impact of cohesion policy funds on the pace of economic growth is limited. This is because the average annual share of funds flowing to Poland from EU sources accounts for less than 3% of GDP. Contrary to popular belief, money from the EU budget is not Poland’s greatest benefit from EU membership. The key role is played by something else: economic integration and access to the single market.

It is free trade and the absence of customs barriers that have allowed the Polish economy to develop dynamically. According to estimates by the Civic Development Forum, Poland’s benefits from access to the single market are at least five times greater than the benefits from access to net EU funds.

The effects are visible in the data. In 2025, Poland recorded a trade deficit of €7.7 billion, but at the same time generated a surplus in trade with EU countries of €78.3 billion. Last year, exports to European Union countries amounted to €274.1 billion and accounted for nearly 75% of the total value of Polish exports. The European market is therefore the main source of demand for Polish products and services, offsetting deficits in trade with other regions of the world.

At the same time, over 22 years, exports of goods and services to EU countries increased almost sixfold in nominal terms. After taking inflation into account, this means an approximately threefold increase in real terms. Today, the value of exports is equivalent to around 50% of Polish GDP. The Polish economy is therefore strongly linked to foreign markets, and especially to the European market.

Economic integration also entails costs and compromises. EU membership means that part of the profits generated in Poland by major European companies is transferred abroad. Stronger competition from companies based in other EU countries puts pressure on less productive enterprises, sometimes leading to their marginalisation or collapse. Membership of the single market also requires compliance with common regulations, which, although they support stability and transparency, may generate additional costs for some sectors.

These are the arguments most often raised by opponents of further economic integration. The question therefore arises: do the costs outweigh the benefits?

We do not know exactly what Poland’s alternative development path outside the EU would have looked like. However, it can be modelled. Using the synthetic control econometric method, the Polish Economic Institute estimates that, thanks to EU membership, Polish GDP per capita is now 42% higher. Without Poland’s membership of the EU, GDP per capita would currently be 30% lower and would be at the level recorded in 2015. In other words, EU membership has accelerated Poland’s economic development by a decade.

Brexit provides an interesting example of the reversal of integration. It clearly shows what happens when integration is drastically limited. The results of a 2025 study by an international team of economists showed that, as a result of Brexit, UK GDP per capita is 6–8% lower than it would have been under a scenario in which the United Kingdom had remained in the EU. In addition, investment in the UK fell by 12–18%, employment declined by 3–4%, and economic productivity decreased by 3–4%. Limiting economic integration can therefore lead to measurable losses in economic growth, investment and efficiency.

Although it is impossible to measure with absolute precision how much European Union membership changed Poland’s development trajectory, different analyses lead to a similar conclusion: European integration has been one of the key drivers of the country’s economic growth. Without the European Union, Poland would be significantly poorer today, and that would be felt in everyone’s wallet.

Author: Paweł Janukowicz is a doctor of social sciences in the discipline of economics and finance and a member of the Polish Economic Society.

Sources:
Bloom N. et al. (2025), The Economic Impact of Brexit, National Bureau of Economic Research.
Michnik M. (2024), Twenty Years of Poland’s Membership in the European Union – Benefiting Everyone!, Civic Development Forum.
PIE (2026), Economic Weekly No. 13/2026.

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