Labor costs stifle Polish firms; Merz's economic plan under fire

Polish entrepreneurs are grappling with escalating labor costs, which have become the most significant barrier to their businesses. A recent Grant Thornton study, surveying 34 major global economies, found that Poland is among the countries where operating a business is particularly challenging.

Over 66% of surveyed entrepreneurs in Poland identified labor costs as their primary concern. Other major obstacles include economic and regulatory uncertainty, as well as high energy prices. Experts note that employment costs in Poland are rising much faster than the EU average, with productivity growth failing to keep pace with wage increases.

In related economic news, German Chancellor Friedrich Merz's 500 billion euro economic stimulus plan is facing criticism. Economists point to slow implementation, complex administrative procedures, and a lack of preparedness among responsible institutions as key issues. Furthermore, a significant portion of the funds has reportedly been allocated to projects initiated before the fund's creation, raising questions about the plan's effectiveness.

Additionally, the report touches on a partial rollback of U.S. President Donald Trump's tariff policy, with reductions on certain steel, aluminum, and copper products, as well as agricultural and industrial machinery. The move aims to stimulate business investment and industrial capacity, signaling a recognition of the negative impact aggressive tariff policies can have on domestic businesses and investment.

Finally, the real estate sector in Poland continues to offer high remuneration, with nearly 50 executives and board members of development companies earning over one million Polish zloty in 2025. Boaz Haimiz, CEO of Ronson Development, topped the list with over 6.5 million zloty.