Published by Global Banking & Finance Review®
Posted on June 18, 2025
3 min readLast updated: January 23, 2026
Add as preferred source on GooglePolitical feuding in Poland threatens its investment appeal and EU funding prospects, warns Lewiatan leader, amid immigration challenges.
By Karol Badohal
WARSAW (Reuters) - Poland's appeal to foreign investors could suffer if a power struggle between its liberal government and newly elected conservative president deepens in the next years, the leader of a leading employers' group, Lewiatan, told Reuters.
Eurosceptic historian Karol Nawrocki, backed by right-wing opposition parties, defeated government candidate Rafal Trzaskowski in a June 1 presidential vote, dealing a blow to Prime Minister Donald Tusk's plan to consolidate power and steer Poland fully back onto a European Union-oriented course.
Nawrocki's veto powers could stymie any reform drive by Tusk, whose popularity has already eroded, partly due to his failure to deliver on key electoral pledges such as judicial reform or big tax cuts, since taking power in 2023.
The threat of continued political infighting would create "a climate of uncertainty" for investors, Lewiatan head Maciej Witucki said, adding to worries over geopolitics, the looming threat of tariffs and Poland's deteriorating public finances.
"Today, there is a lot of capital in the world, but this capital is looking for safe places. And places where the authorities fight among themselves are not safe," Witucki said in an interview.
Poland's stock of inward foreign direct investment had risen tenfold from 2000 till 2023 to $335.54 billion, based on UNCTAD data, though the pace of inflows slowed in 2023, reflecting wider trends elsewhere in central Europe.
Credit rating agencies have said lowering the EU's second-highest budget deficit could face challenges following Nawrocki's election triumph, as it will likely curb the government's appetite for budget cuts.
IMMIGRATION
Witucki said the stalemate could also complicate efforts to import more foreign workers, with most of Poland's main parties during the election campaign opposing or showing caution about immigration from outside the EU.
Poland is hoping to modernise its economy with billions in EU funding, but Witucki said this could prove difficult without "selective and smart" immigration.
Poland's jobless rate is already among the lowest in the EU, while its birth rate also ranks among the worst in the bloc.
"We will not build highways, we will not build nuclear power plants without external workers," Witucki said.
"We also do not have enough bricklayers, welders and other experts to carry out all these projects on our own."
Alluding to the nearly one million Ukrainians who have settled in Poland since Russia's 2022 invasion, Witucki added: "We cannot count on Ukrainians because they, I hope, will be rebuilding Ukraine."
(Reporting by Karol Badohal; Editing by Gergely Szakacs and Gareth Jones)
Political infighting could create a climate of uncertainty for investors, as they seek safe places for their capital. This uncertainty may deter foreign investment in the country.
The election of Eurosceptic historian Karol Nawrocki as president could challenge the government's reform agenda, particularly in areas like judicial reform and budget management.
Poland's political stalemate may complicate efforts to import foreign workers, which are essential for modernizing the economy and completing infrastructure projects.
Poland's foreign direct investment stock has increased tenfold from 2000 to 2023, reaching $335.54 billion, although the pace of inflows has slowed in 2023.
Poland has one of the lowest jobless rates in the EU, but it also faces a declining birth rate, which could impact its labor market in the future.
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