Poland's state firms are national assets in chaotic times

State-owned enterprises are not burdens but vital tools for Poland's global competitiveness, particularly in an era of declining globalization and increasing geopolitical instability. Recent events, including the war in Ukraine, the pandemic, and tensions in the Strait of Hormuz, underscore the critical role of state control in ensuring national security and safeguarding the Polish economy.

Historically, Poland debated the necessity of state ownership in certain companies. However, current global dynamics reveal these entities as essential instruments for security and market defense. The state must proactively make decisions that might be questioned in a purely free-market system but are justified by the broader interests of the nation and its citizens.

Even countries synonymous with free-market principles, like the United States, are increasingly seeing the state influence economic policy, with private companies following suit. This shift blurs the lines between political intervention and free markets, favoring the former. The past assumption of continuous economic growth through optimized supply chains and cheap resources has proven vulnerable, as seen in Europe's diminished industrial competitiveness and over-reliance on Asian suppliers, particularly China.

This geopolitical jolt has left nations exposed. It may be the last chance to consciously shape the European market, not just for geopolitical reasons but also for internal security. Poland, like Europe, has lost competencies in various sectors, perhaps overly embracing green economy goals without securing essential domestic production of fertilizers, active pharmaceutical ingredients, or maintaining heavy industry capabilities. The priority must be energy security and industrial rebuilding, even before fully realizing climate objectives.