* * EBRD leading renewable energy revolution >> New 4 Energia plant in Latvia >> New projects agreed by WGBC and EBRD >> Poland hosts EBRD meeting >> Armenia to benefit from EBRD loan >> EBRD provides loan to Kobuleti >> New sewage systems brought to parts of Slovenia >> Businesswomen receive welcome boost in Croatia >> Big boost for Lithuanian e-communications market >> Regional Energy Market should be established in Baltic Region >> Czech government announces new efficiency programme >> Renewable energy hits Croatia >> EBRD investment ensures green future >> €11 million loan to provide clean water to Bosnia and Herzegovina >> Romania set for daily fines of €38,000 >> CIMC opens production plant in Poland >> Slovenia aim to reduce building’s energy usage by 30% by 2030 >> Mapei announces HUF 1bn (€3.2m) investment in Hungary >> Mátrai Erőmű opens HUF 6.5 bln. solar power plant >> Elektroprivreda Srbije (EPS) receives €200 million loan from EBRD >> Mátrai Erőmű opens HUF 6.5 bln. solar power plant >> Hungarian government, Grundfos signs strategic partnership agreement >> GVH greenlights Veolia’s purchase of GDF Suez’s plant >>Bulgaria opens new gas transmission pipeline >> EU gives Romania a due date to close and/or restore 109 landfills > Bulgaria Expects to Choose Builder of Gas Link to Romania > EIB extends backing to SME and mid-top undertakings through BS in Slovenia >WOOD-TEC 2015: 14th International Fair for Wood and Furniture Industry in Brno > Laesti raises more capital for Sauga sawmill in Pärnu, Estonia > Poland’s BZ WBK Lease gets loan of €50 million for sustainable energy projects >Bosch invests HUF 9.3 billion in plant expansion > EBRD increases backing for sustainable energy in the Slovak Republic > EBRD targets increased energy savings in Ukraine >> EBRD and EU aim to and develop the water and wastewater services in Romania’s Ilfov County >> Enea to purchase an additional wind farm in CEE >> UPB Energy to build a EUR 30 biomass energy plant in Latvia >> REC celebrates 25 years, embarks on route for the foreseeable future >> Low-carbon city forum focuses on green development >> WIL has many years of expertise in the tyre recycling business >>EBRD and EU look to improve Kazakhstan’s long term source of water >> REC celebrates 25 years, embarks on route for the foreseeable future >> WIL has many years of expertise in the tyre recycling business > RWE to expand wind power portfolio in Poland > Environment : EU Commission brings POLAND and SLOVENIA to The court for e-waste failings >EUR 35 mln will be invested in a Romanian eco-residential complex >> Brodosplit Shipyard in the Adriatic port of Split >> EBRD Transition Report 2013: Emerging economies can break through reform stagnation >> Finish company Fiskars thanks MOL for 350% increase in sales >> Ikea largest store in Poland is completed in Wrocław >> EBRD extends extra €15 million to Raiffeisenbank (Bulgaria) for energy efficiency projects >> Growth returns to Central Europe as eurozone exits recession >> EBRD considers financing first major wind farm in Kazakhstan >> Immochan plans to build shopping centers in CEE >> Swiss electric giant LEM opened a new high-tech factory in Bulgaria >>EBRD lends Rb 1.7 billion to UniCredit Leasing Russia for energy efficiency >> Water supply and wastewater treatment in mid-sized municipalities in Serbia funded >> EBRD strengthens drive for energy efficiency >> Agreements with close Kazakhstan , Agreements with Taiwan developing >> Taiwan working closer with the EBRD on investments in Central Eastern Europe to help find Partners >> EBRD and Ministry support small business in Russian Far East >> Germany building a lead in Ukraine >> Enel Green Power builds a new interconnected PV plant in Romania >> Joint IFI Action Plan for Growth prepares emerging Europe for “competitive and prosperous future” >> China and Poland now connected by new Cargo Train links >> Poland the best economic performer in Europe during the last 20 years >> Poland:luxury goods sales increasing in Poland >> IFIs on track to deliver on investments for growth in Central and South Eastern Europe >> EBRD hails success of St. Petersburg clean river project >> EBRD channels €15.5 million to support major biomass project in Ukraine >> E-Commerce giant investing in Poland >> EBRD co-finances expansion of PEPSA wind farms in Poland >> Is Emerging Europe becoming a “new safe haven”? >> Eastern Partnership transport ministers meet at EIB >> EIB continues to support the upgrading of Sofia’s municipal infrastructure >> EIB supports more efficient power generation and emissions reductions in Russia >>EBRD backs Russian oil-field services company’s Eurobond >> EBRD supports renewable energy project in southern Ukraine >> EBRD President seeks more Asian investment in EBRD region >>New Trade and Banking deals between China and Hungary >> Taiwan Taipei China and the EBRD >> China Invests more into Bulgaria >> EBRD steps up support for energy efficiency investments in Belarus >> Clean water for Romania’s Bihor county >> EBRD issues US$ 250 million “Green Bond” >> Water and wastewater modernisation in Dolj >> EBRD supports bottled water producer in Azerbaijan >> Report: The Waste Water Industry of Poland >> Hyundai looking to invest in Waste Treatment in Serbia >> EBRD invests in Russian IT outsourcing provider MAYKOR >> Joint investment with the Russian Direct Investment Fund and CapMan Russia II Fund >> €10 million loan for Albania’s Credins Bank >> Garbage Management Is a Problem in Russia >> Eastern Europe countries must invest in the economic upturn-GfK >> EBRD supports energy efficiency lending and trade >> Serbia’s economy reindustrialization strategy includes the development of IT >> Rompetrol wins US$1.1bn contract to modernise Kazakh refinery >> EBRD helps Ecoprod generate power from biogas >> The largest oil and gas mine in Poland launched >> Ukraine government approves Energy Strategy until 2030 >> Romania aims to raise €600m from Romgaz IPO in November 2013 >> Non-residents’ direct investment in Romania estimated at EUR 666 million >> EBRD helps Ecoprod generate power from biogas Ukrainian agribusiness firm turns waste into electricity >> US-based AECOM and South Korea’s Hyundai Engineering & Construction are interested in developing major Romanian infrastructure projects >> Energy efficiency investments to boost Podravka’s competitiveness >> Alstom was awarded a €100 million contract to supply 6 Francis turbine-generator units and auxiliaries in Albania >>> €190 million in loans for wood processor Kronospan Funding for facilities in Belarus and Russia to develop forestry sector >> EBRD boosts COSMOTE in Romania’s 4G race €225 million loan for better infrastructure in telecoms sector >> Improving the sustainability of SPAR Slovenija EBRD to provide to €40 million loan to support retailer’s development >> Germany will provide EUR 35 million in support for two energy projects of FYR Macedonian Power Plants >> New EBRD loan encourages Romanian SMEs to invest in energy efficiency €10 million to UniCredit Tiriac Bank to help the private sector cut energy bills >> EBRD finances water supply improvements in Yerevan €5.4 million to rehabilitate water supply infrastructure operated by Yerevan Djur CJSC >> EBRD 10-year loan for main city on Sakhalin island First major investment in decades for district heating system EBRD is driving energy efficiency in Moldovan households >> Romania passes law backing Nabucco gas pipeline project >> Hungary, Austria, Romania and Bulgaria back Nabucco West over TAP rival >> EDF plans €300m investment in Rybnik plant modernisation (Poland) >> Romania approves cut in green certificates and renewable incentives >> EBRD President Sir Suma Chakrabarti says corruption is deterring investment >> FYR Macedonia investment opportunities presented in Malaysia >> GE is Helping Europe to Improve Grid Efficiency, Enable Optimum Asset Management and Enhance Active Network Control >> 6 million Euro Albanian gas power plant will export 70 % of the plants production >> Serbia, Czech Republic start environmental protection cooperation >> An integrated biorefinery for processing crustacean shell waste into specialty and fine chemicals underway > Gasmet: Advanced Gas Detection Technology Supports Arctic Greenhouse Gas Research >> EBRD steps up support for Romanian SMEs >> EBRD supports Montenegro’s power grid upgrade, link to Italy >> EBRD energy efficiency funding for Russian homes >> Financing sustainable energy investments for Bulgarian business EBRD supporting energy efficiency in Slovak Republic >>> €10.3 million extra for Shymkent wastewater modernisation in Kazakhstan >>> Warsaw and Vienna exchanges discuss merging to create CEE share trading hub >>> Donor funding for environmental investments in Belarus >> EU-funded project will reduce electromagnetic field exposure by 50% >>Serbia's industrial production increases by 13% >> A snapshot of ICT in Serbia >> In the starting blocks >> Poland listed as one of Europe's windiest locations >>> AIR POLLUTION Warsaw Entry forbidden >>> Donor funding for environmental investments in Belarus >>> Chinese engage companies from Bosnia Herzegovina for Stanari power plant >>> EIB may lend $1.2 bln for Romanian projects in 2013 >>> EBRD contributes to safety of Ukraine’s nuclear power stations >>> EMS takes on eastern European auto supply busines >>> Taiwan, EBRD ink green investments pact >>> EIB supports modernisation of air traffic management infrastructure in Ukraine >>> EIB and EBRD to support completion of TES-Thermal Power Plant Sostanj project >>> EIB and BCR continue to support SMEs, midcaps and municipalities in Romania >>> EBRD President Chakrabarti visits Taipei >>> EBRD and partners explore next-generation biofuels >>> EBRD strengthens capital base of Siauliu bank >>> Bulgaria’s Biomashin attracts EBRD support 3 New Wind Farms For Romania >>> EBRD invests in Lithuanian port’s future as major hub >>> Biggest ever EIB loan in Slovenia: EUR 500 million for co-financing with EU Funds >>> EBRD adopts new Russia strategy for 2013-2015 >>> EBRD lends to Ukraine’s Coal Energy >>> EBRD boosts support for Belarus banking partner >>> EBRD channels safer drinking water to more of Tajikistan >>> Head of the EU Delegation: Serbia and EU to commence accession talks soon >>> New Joint IFI Action Plan for Growth in Central and South Eastern Europe >>> Poland to get new 53 MW wind farm in Kukinia: EBRD finances a new wind farm and supports the existing one in Tychowo EIB reinforces its support for upgrading Poland’s energy distribution network >>> EIB supports SMEs in Romania with EUR 45 million >>> Hungary: EIB continues to support smaller private companies with EUR 100 million >>> Leasings up in CEE >>> Romania has 750MW of wind farms in testing stage >>> Serbia's Energy Minister announced new incentive tariffs for the production of electricity from renewable energy sources Major new gas plant in Lithuania to replace lost nuclear power >>> EBRD funds Continental’s Russian tyre plant >>> The EU agreement on climate Polish law AAU emission units defended >>> STRABAG to build Europe’s most modern waste treatment plant in Ljubljana >>> EU greenhouse gases in 2011: more countries on track to meet Kyoto targets, emissions fall 2.5 % >>> Protected areas have increased to cover one fifth of Europe’s land >>> EBRD: world’s major waste - flaring gas - could be turned into profit >>> Valcea, Romania, to upgrade water and wastewater services with EBRD loan >>> EBRD directors visit Poland >>> EBRD to finance its first solar power project >>> EBRD unleashes energy efficiency potential of Ukraine’s district heating sector >>> New EBRD financing facility for residential energy efficiency projects in Moldova >>> Giving old tyres a new life >>> Serbia - RWE and EPS (Serbia) sign collaboration agreements >>> Two new hydropower plants in Albania >>> Poland - RAG (Austria) signs deal with GazSystem for gas storage in Poland >>> Poland - Enea signs EPC contract for 1,075 MW supercritical plant (Poland) >>> Ukraine - Ukraine starts construction of 750 kV transmission line >>> Ukraine - Ukraine receives €200m loan for 22 hydropower projects (980 MW) >>> Bosnia - RWE will develop 210 MW of run-of-river capacity in Bosnia >>> ... Slovakia spends 33 mln eur on car-scrapping subsidy ... EBRD helps boost green energy use in Poland >>> ... EBRD reiterates Poland's 2011 GDP growth forecast at 3.8% >>> Geomorphological Secrets Yana River Basin Revealed >>> Imtech: strong further growth in Poland, broad palette of new orders >>> WÄRTSILÄ INTERIM REPORT JANUARY-JUNE 2011 >>> Outotec >>> Hungary 'should focus on CO2 cuts outside ETS' >>> We cannot afford to waste energy and raw materials – the informal meeting of the EU Competitiveness Council with Minister Andrzej Kraszewski. >>> Smart meter producers report huge increase for shipments in CEE region
Jazyk
Vyhľadávanie A-Z
ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ0-9
Vyhľadávanie spoločnosti:
Menu

EBRD President on Poland's growing role in Europe
2012-03-28 00:00:00
Speech by the EBRD President Thomas Mirow to the University of Warsaw, Poland, 19 March 2012

Ladies and Gentlemen,
Dear students,

It is a great pleasure to stand today at the prestigious University of Warsaw, before this audience which represents Poland’s best intellectual traditions.
I am delighted to be back visiting Poland. I have already had the opportunity today to exchange views with senior members of the government. I am sure this lecture will give rise to yet another fruitful exchange following my intervention – which I will try to keep short.
Let me start with a simple statement: the importance of Poland is undoubtedly growing in Europe. On a political level, your government’s presidency of the Council of the European Union last year has attracted a lot of attention, both within and outside the Union. But what attracted even more attention is, I think, Poland’s recent economic success. Poland was among the very few countries in Europe (if not the only one) which managed to sustain growth throughout the deep recession in 2009, and has shown a very respectable expansion since then. This is, of course, in stark contrast to diminishing investor confidence and uncertainty over the medium term outlook elsewhere in the continent.
Yet, this success cannot be taken for granted, and Poland, like other countries, is facing significant challenges. The European economic environment is posing clear risks and should stimulate fresh thinking about a model of resilient and sustained growth for Poland. In my remarks today, I would like to try and sketch some elements of such a model.

A few words on the EBRD
Please allow me first a few words on the institution that I have the privilege to lead, the European Bank for Reconstruction and Development. The Bank was created in 1991, shortly after the fall of the Iron Curtain, to accompany the countries of the former Soviet block on their thorny path towards democracy and market economics. Our goal is to promote private initiative and entrepreneurship in 29 countries, from the Baltics to Turkey and from Poland to Mongolia. We invest today around EUR 9bn annually in both debt and equity, and engage in policy dialogue with governments on a wide range of policy issues.
And now, against the background of the Arab Spring, the international community has asked us last year to expand our mandate to the countries of the southern and eastern Mediterranean, where the challenges bear some similarities to those of central Europe twenty years ago. This process is ongoing, but we should be able to start investing in Morocco, Tunisia, Egypt and Jordan in the course of this year – technical cooperation projects have started already.
We have been closely engaged in Poland since the early days of the country's economic and political transformation, and Poland is still one of our largest countries of operations. Last year, we invested EUR 900 million in Poland, bringing our cumulative investments in the country to close to EUR 6 billion. The Bank’s annual business volume in Poland was on a descending path in the years preceding 2008, as its finance was less additional to what Poland could secure on international markets and Poland’s transition was at an advanced stage. However, the global financial crisis revealed some weaknesses and created renewed demand for our finance, mostly to support banks and to move the energy sector towards greater energy efficiency and clean energy use.
Poland, along with other new EU member states, is expected to graduate from the Bank in the medium term – this means in our jargon that the transition process will be well advanced and EBRD would no longer be additional to other potential sources of finance available on the market. In the meantime, we expect still several more years of close involvement, not just through our investments, but also through policy dialogue and technical assistance. After graduation we will continue to work with Polish firms as sponsors of EBRD projects in other countries of operations, as contractors and consultants on EBRD projects and as a source of transition know-how that can be shared with less advanced transition countries in our existing and new region of operations.

Poland’s growth within a troubled EU economy
But let me come to the substance of my intervention today.
The Polish economy, like the rest of the region, faces a challenging external environment, in terms of both prospects for exports and external funding.
The impact of the slowdown in global and European trade on the Polish economy has been fairly limited, because Poland is much more reliant on its domestic market than its peers in the region, and that has helped in sustaining growth in the crisis.
The most significant risk for Poland comes from a possible withdrawal of foreign capital or liquidity from its financial sector.  In December, we saw the initial signs of a new ‘credit crunch’ within the eurozone, with growth in credit falling to new lows and bank funding being withdrawn from the central Europe region. To its credit, the European Central Bank reacted swiftly and boldly through its two refinancing operations which totalled more than EUR 1,000 billion. This has helped to avert a liquidity crisis, but we don't know yet how much of this amount will trickle down to finance credit from the subsidiaries of foreign banks in central Europe.
There are also some fears that the higher bank capital requirements set by EU leaders will hurt central Europe, as banks unwind their foreign assets before reducing those in their home bases. Such an unbalanced ‘deleveraging’ is without doubt a risk, but there is little evidence thus far that large bank groups are doing so excessively – banks are seeking to improve their balance sheets primarily by increasing their capital.
Looking forward, we are reasonably optimistic for the eurozone.  The ECB’s funding injections have bought Europe some time and the orderly restructuring of the Greek debt – at least a first part of it – has now been successfully pulled together. Concerns over sovereign solvency may come back on the agenda. But, if a stronger fiscal governance framework is indeed implemented within the euro zone, we believe that further deterioration in the crisis can be avoided this year.
Nevertheless, structural reforms will not boost growth in the short term, and it is clear that the EU’s public and private debt problems will take many years to work out.

Elements of a new growth strategy for Poland
Against this background of scarce capital and slow growth in the eurozone, it is of the utmost importance that Poland progresses further with its long term structural reform agenda and lays down the foundation of its future growth. Let me touch upon a few ongoing and important areas for further reform.

· The programme of outstanding structural reforms
Like most observers, we were encouraged by the structural reform programme that Prime Minister Tusk announced early on in his second tenure. The implementation of the announced fiscal consolidation strategy is vital to sustaining investor confidence amid broader concerns over sovereign exposures. Realigning social expenditures and pension rights under this year’s budget might be painful, but events elsewhere in Europe last year underline how much more draconian adjustments can be when forced by market pressure. This is not just a fiscal imperative but should also give greater incentives to re-enter the labour market, raising Poland’s unusually low labour participation ratio.
But there are broader challenges in the business environment that may hold back growth. Poland’s rankings in internationally comparable ‘business environment’ indicators remain relatively low. The government’s commitment to introduce time limits for the approval of public and private investment projects, to give just one example, is very welcome.
Over the medium term, reducing the direct involvement of the state in the economy remains a priority. The privatisation programme has made very good progress but key companies in the energy, mining, and heavy industry sectors remain in state hands. In the infrastructure sector, giving more space to the private sector is essential. Poland has a very good record in utilising the EU’s structural funds but, ultimately, private commercial funding needs to emerge – indeed this is something the EU itself will increasingly encourage.

· Encouraging the knowledge economy
But as a relatively advanced transition economy, Poland will also need to adopt new strategies to sustain productivity growth. This can be done through attracting foreign direct investment, where Poland has sustained inflows better than many others over the past years. But it also needs to be fostered through home-grown innovation.
Already in 2010, the government adopted reforms for the university education system. Now is a good time to press on with its plans to incentivize private sector research and development. With its relatively young and well-educated workforce – of which you, students at the University of Warsaw, are clear evidence – and with a significant stock of foreign investment in manufacturing and other research-intensive sectors, Poland has substantial potential in the so-called knowledge economy.
This is an area in which the EBRD has also stepped up its efforts, in particular in central Europe which now needs to embrace its next growth phase. Provision of risk capital is a particular constraint and we stand ready to support the Polish SMEs and innovators through improving access to private equity funds, which are increasingly directed at young or innovative companies.

· Supporting a new model for sustainable banking
Finally, and I will dwell on this vital point, there is a need to develop the regulatory and market underpinnings of a more sustainable banking model.
As you know, after a series of local banking crises following the fall of the Berlin Wall, central Europe opened itself up very rapidly to foreign banks through privatisations, which in several countries placed 70-90 per cent of bank assets under the control of foreign-owned bank subsidiaries. Foreign capital flows into the region increased swiftly, mainly from European parent banks to their newly acquired subsidiaries. Rapid credit growth fuelled GDP growth, which in turn attracted more funding.
We continue to believe that this has not only supported the remarkable growth and convergence of incomes with the EU average that we have seen in central Europe – in part by allowing to import skills and technology into underdeveloped financial sectors – but that it has also displayed a degree of stability during the financial crisis of 2008-09.
But today, financial integration in Europe is such that national policies in one country affect negatively financial systems in other countries, through cross border banks that operate across many countries. The decision of the home country of a big bank group can affect the operations of the bank's subsidiaries in other countries. There can also be incentives to ring-fence national banking systems that drive up capital and liquidity needs, and lead to a further tightening of credit conditions. This can possibly undermine the very foundations of Europe’s single market in financial services.
In our view, this calls for closer regulatory coordination to safeguard the benefits of financial integration. Host countries should have a closer involvement in the supervision of the bank groups whose subsidiaries may well be small, but could be of systemic importance within the host country. This cooperation should also extend to up-front coordination on a potential bank resolution scenario. The trust thereby established would underpin supportive regulation during normal times.
These are some of the ideas that have encouraged us to launch a second phase of the so-called Vienna Initiative, the 'Vienna 2.0', which got underway last week, and is supported by numerous bank groups and regulators from across Europe – including from Poland. We trust that, given its importance in the region and rather positive experience, Poland will be able to play a prominent role under Vienna 2.0. 
At the same time the new reality of European funding conditions also calls for adjustments in the management of banks themselves. A stronger reliance on a local funding base could address many of the vulnerabilities exposed during the crisis. In this regard, Poland is at the forefront of developing local bond markets for private issuers, and EBRD has lent some support and advice to this effort. Local savings pools and institutional investors are growing and will give this market crucial liquidity. Poland has expended significant effort in building private pension funds – indeed it was one of the first countries in emerging Europe to do so – and these funds could now be an important support to the development of local capital markets, while providing a well diversified capital base for retirement income.

Concluding remarks – Poland’s role in Europe’s single market and beyond
But it is now time for me to conclude. Within Europe the focus will now hopefully turn from the imperative of stabilising public finances and calming financial markets to putting in place elements for renewed medium and long term growth.
On these reforms, Poland can speak with some weight. I would expect that in the coming years the completion of Europe’s internal market will once again return to the political agenda. The liberalisation of services and the recognition of national professional qualifications are policies integral to Europe’s freedoms and Poland stands to benefit, as has already been the case with free movement of labour.
Poland has done much to put the interests of the new member states on the agenda in Brussels. It has spoken up for the countries in Europe’s neighbourhood, who must continue to find open and supportive markets for their goods and services within the EU.
Market integration and sustained reform policies have propelled Poland’s transition over the past twenty years. This is a record you should be proud of. I wish you well in your studies, and I am sure you will find roles in which you can take this growth forward.

Thank you for your attention.