Key Challenges
The new government led by Donald Tusk faces significant challenges arising from the profound systemic changes implemented in Poland in the post-2015 period. Key priorities include restoring the rule of law, returning to a functioning democratic institutional system, enhancing governance quality both horizontally and vertically, ensuring transparency, and accelerating reforms. However, many key institutions will remain unchanged due to ongoing terms of office. A strained cohabitation with President Andrzej Duda until mid-2025 may complicate reform efforts.
The unity of the ruling coalition will be crucial. The government, composed of parties united by fundamental democratic principles, may have divergent views on specific issues such as abortion. Intense competition within the ruling camp could surface as the next presidential elections approach, with each party possibly fielding its candidate. In early 2024, Szymon Hołownia from Polska 2050 had already announced his candidacy, planning to step down as speaker of the Sejm after two years in favor of a left-wing representative. Leadership within PiS remains uncertain, with Jarosław Kaczyński potentially retaining control, or else being succeeded by younger leaders such as Zbigniew Ziobro, Mateusz Morawiecki or Andrzej Duda.
Economically, one primary challenge lies in the need to maintain budgetary discipline and control the state deficit, which is expected to exceed the EU-mandated 3% of GDP. Nonetheless, the government has decided to retain all social benefits, including the 800+ program, additional pensions and public sector salary increases of up to 20%, or even more in the education sector (30%). These expenditures, combined with the rise in the minimum wage, may strain employers and expand the job market, but could also increase inflationary pressure, with the inflation target likely to be achieved only by 2026. While macroeconomic forecasts, including economic growth rates, appear favorable for Poland, the government must be more proactive in fostering investments.
In the social sector, public services must be improved. Teachers, parents and students have highlighted the urgent need for reforms in the education system. Family policies should shift focus from social transfers to the creation of high-quality services and incentives for parents. The healthcare system also demands significant attention. Successful reforms in these areas will depend on effective cooperation with local authorities via consultation and inclusion, especially with the upcoming local elections in April 2024.
Domestic policy will largely hinge on international dynamics, particularly with respect to rebuilding ties with the EU. This includes active engagement in the flow of EU funds and constructive participation in decision-making processes. Poland is set to receive €59.8 billion, with substantial allocations for climate goals (46.60%) and digital transformation (21.36%) (European Commission 2024). EU funding should primarily be used to support green transformation, addressing the urgent need to shift to renewable energy and a circular economy. Digital transformation and addressing AI-related challenges will also require government focus.
The new government will also have to address the complex issue of migration, anticipating increased illegal crossings at the Polish-Belarusian border. Controversial topics such as “pushbacks” and the EU’s mandatory solidarity mechanisms will likely be points of contention. The European Parliament elections in June 2024 may further reflect Polish public opinion, known for its strong commitment to European integration over the past two decades.
The ongoing war in Ukraine poses the most significant challenge to national security. Poland’s resilience will be tested as a front-line country, with a continued role in logistical deliveries of equipment and humanitarian aid. However, reestablishing political closeness with the Ukrainian government – which the previous administration disrupted – will be essential.
Lastly, deep societal polarization presents a critical challenge. Political divisions have revealed substantial differences in values and priorities among Poles. The formation of the new government has raised high expectations among its supporters, but fostering broader social trust will be crucial for the nation’s cohesion.
Citations:
European Commission. 2024. “Poland’s Recovery and Resilience Plan.” https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility/country-pages/polands-recovery-and-resilience-plan_en