Government shifts economic strategy toward national interests ahead of elections

Prime Minister Donald Tusk has recently presented a shift in Poland’s economic direction, emphasizing a greater focus on national interests and the role of the state. Describing the current phase as the end of “naive globalization,” the Prime Minister called for the reconstruction of the national economy and increased reliance on domestic capital. In this context, Tusk promoted the idea of “repolonization” of markets, asserting that capital and the economy carry national identity.

A key element of the Prime Minister’s statements included tighter oversight of investments made by state-owned enterprises. He advocated for prioritizing Polish capital and businesses in public tenders and strategic projects. The energy sector has become a particular focus, with the Prime Minister urging energy firms to lower electricity prices, suggesting that these companies have responsibilities that go beyond financial performance.

These remarks were followed by a decline in the share prices of major listed companies, reflecting concerns from investors about possible government interference in corporate operations and broader market implications. The emphasis on state-driven projects, such as the construction of a nuclear power plant with exclusive involvement from Polish companies, marks a notable departure from Tusk’s previously more market-oriented approach.

Observers have noted that the timing of these announcements, ahead of the upcoming presidential election, may be linked to political considerations. Support for the ruling party’s candidate has reportedly been falling, and the new economic narrative may be aimed at strengthening domestic political appeal.

While the government presents this strategy as a realistic response to global uncertainty, critics argue that it may signal a move toward economic nationalism and protectionism. The delayed announcement of a long-promised deregulation package further raises questions about the balance between market liberalization and increased state control.

Economic analysts warn that increased political involvement in corporate decision-making and shifting signals to the business community could weaken investor confidence. The current direction suggests a departure from Poland’s previously liberal economic model, with the state taking on multiple roles as regulator, market participant, and owner. The full implications of this approach will likely depend on how it is implemented in practice and how the private sector responds in the months ahead.

Author: Łukasz Wojdyga, Director of the Center for Strategic Studies, Warsaw Enterprise Institute (WEI)