Polish Conundrum: Poland on its way to Greece

The Polish GDP is strongly influenced by a stream of financial transfers from the European Union, in 2010 the net income from the EU budget was about 8 billion euro. Were it not for the transfers from the Union, the change of the Polish GDP in relation to 2009 would have been lower by at least 6 percentage points and we would be facing the drop of the GDP. The Polish annual GDP is about 350 billion euro and thus the amount of net income of 8 billion euro from the Union’s budget is directly equivalent to 2.3 % of the GDP. However, in a short-term life cycle assessment, it can be estimated that expenses resulting from a subsidy that Poland receives have a multiplier effect of 3-4 times. Companies and employees completing projects financed by the Union spend monies earned on other goods and services so that other producers also purchase others goods etc. Already in a short period concerns the projects implementation it is possible to consider that the amount of 8 billion euro of annual income from the Union increases the Polish GDP by at least 20 billion euro or by about 6 percentage points.

Polish Conundrum Poland on its way to Greece - eTurboNews.com