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BUSINESSPoland's Economic Freedom Ranks Last in EU

Companies operating in Poland should have the best possible conditions to operate – just like companies in Slovakia, Estonia, or Ireland. It’s impossible to do this without changing one of the worst tax systems among OECD countries, which currently ranks 36th out of 37 countries. These are the data even before the implementation of the so-called Polish Order – a system that is blocking and thwarting Polish entrepreneurship. This is the minimum change that the government should introduce to unleash the economy. The most important change should be the restoration of economic freedom. As part of the recent Fraser Institute rankings, in which the Adam Smith Centre collaborates in creating the Economic Freedom Index worldwide, Poland ranked last in the European Union in terms of economic freedom.

“The most important thing now is to change the quality of the conditions for conducting business in Poland. The government should adopt several fundamental principles – first, the law is constant and does not deteriorate for a minimum of 10 years, because this is how long various types of investments and their settlements last,” said Andrzej Sadowski, President of the Adam Smith Centre, to eNewsroom.pl website. “Therefore, without ensuring the stability of law over time, or at least its not worsening – because the law can improve – it’s hard to imagine private investments kicking off in Poland. Meanwhile, it is these private investments that should shape the future – not public spending, which as we can see can be unprofitable. For example, as with the Ostrołęka Power Plant – billions can be spent with no benefit, it’s an evident loss for the Polish taxpayer. Secondly, it’s essential to finally eliminate discrimination against Polish companies in Poland and equalize them in rights with international corporations. The time has come to stop the practice of economic apartheid, which favours international corporations while harming Polish firms. The government should adhere to the principle of economic patriotism, which is undoubtedly right,” emphasizes Sadowski.

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