The 6th European Economic Congress brought together thousands of guests to discuss key issues facing Europe. Main conclusions included the need for a common European energy security strategy instead of individual country approaches, balancing climate policies with industrial competitiveness, and increasing global partnerships. Completing the EU single market and Transatlantic Trade and Investment Partnership were seen as opportunities for economic growth but also challenges in harmonizing regulations. Energy policies were debated in the context of climate change goals, domestic fuel sources, and increasing security of supply through regional cooperation and infrastructure links.

1. Lessons
for EuropeAn official public ation of the 6th European Economic Congress
Security
Competitiveness
AFreshStart

3. L e s s o n s f o r E u r o p e 2 0 1 4
3
It is now the sixth time that several thousand invited guests
have met in Katowice, at the heart of the most industrialised
region of Poland, for the European Economic Congress.
Every year the Congress hosts EU Commissioners and other
European politicians, representatives of Central European
governments, investors, managers of the largest European
companies, academics and experts, who participate in over
a hundred debates, meetings and accompanying events, all
attracting a lot of media attention.
This year’s edition of the Congress has been exceptional in
many ways: on one hand, in May this year we celebrated the 10th
anniversary of the largest EU expansion to date, and on the other,
the recent events in the east of Europe added intensity to the
debate on European energy security.
The majority of our participants come from the central part
of Europe and it is their voice that is heard in the concluding
message of the Congress. We, as the Congress organisers, very
much wish for the conclusions and recommendations of each
Congress to become part of the public debate about the future of
the European Union. This objective is also realised through the
preparation of the publication that we now provide to you.
We believe that this kind of activity will help in solving the key
European problems defined during the May debates in Katowice,
and also in facing up to the new dilemmas within the
preparations for the 7th European Economic Congress to be held
in 2015. We very much hope to see you again in Katowice next
year!
Yours sincerely, Wojciech Kuśpik
Initiator of the European Economic Congress President of the PTWP Group
LadiesandGentlemen,
A n o f f i c i a l p u b l i c at i o n o f t h e 6 t h
E u r o p e a n E c o n o m i c C o n g r e s s
Lessons
for Europe
FROM THE EDITOR
IMPRINT
Publication by PTWP SA Group
– organiser of the European Economic Congress
Written by the editorial teams
of the Nowy Przemysł economic monthly,
the wnp.pl economic portal and other websites
of PTWP Group. Edited by Oskar Filipowicz.

4. 4 EUROPEAN ECONOMIC CONGRESS 2014
Europe–secure,
competitive,open
E
urope is in need of a fresh
start: in the world, in the
marketplace, and on issues
of integration. It has to stand
up to populism and Euro-scepticism
through the effectiveness of its work,
which will prove that there is still a fu-
ture for the European Union in spite of
all its problems. Competitiveness, use of
knowledge and competences, efficient
spending of common funds, aimed at
creating conditions for the economic
growth – these are the signposts for the
difficult times for the idea of the Euro-
pean community.
A decade ago saw the largest expan-
sionoftheEuropeanUnionwiththeac-
cession of 10 countries, including Cen-
tral European and Baltic states. These
brought in a hunger for success and
are now models for other developing
economies, for example, in Africa and
Asia. This is one of the most important
This year’s Congress was officially
opened by Poland’s Prime Minister Mr
Donald Tusk and co-hosted by Prof.
Jerzy Buzek, former President and
a current Member of the European
Parliament, and Chairman of the EEC
Patronage Council.
contexts for the 6th European Econo-
mic Congress, and one that has been
frequently stressed, from the opening
ceremony onwards.
However, the overall message of the
Congress – like every year – involves
a broad spectrum of topics embracing
politics, economic cooperation, com-
petitiveness, the economic situation,
trade and free markets, fuel use strate-
gies, investments in industry, transport
and infrastructure, regional policy, as
well as the social aspects of changes in
the economy (labour markets and mi-
gration, health protection, the develop-
ment of regions and cities, and business
responsibility).
Europe and the World
In the ten years since the largest
EU expansion to date, the “new co-
untries” have obviously had specific
experiences, most notably relating to
the economic crisis, with which they

5. L e s s o n s f o r E u r o p e 2 0 1 4L e s s o n s f o r E u r o p e 2 0 1 4
MAIN TRENDS
have coped better than the West, and
in particular the South of Europe. The
new members of the European Union
made huge efforts to join the EU and
to catch up with the more highly de-
veloped Western European countries.
Despite widespread fears, the presen-
ce of the “new countries” has demon-
strated that diversity and, in a global
context, partnership are the real streng-
ths of Europe.
Today, Europe is in need of new mo-
dels of cooperation with others – this
is one of the areas into which Central
European countries can bring their own
experience and energy. In fact, none of
the European countries, with perhaps
the exception of Germany, has a chance
of independently competing on global
markets. Together, the economies of Po-
land and the Central European region,
which are not burdened by a colonial
past, might become an important ele-
ment of international competition, offe-
ring their transformation-related expe-
rience to African and Asian countries.
A common European energy security strategy, instead
of ruthlessly promoted doctrine; reconciling climate protection
policies with the renewal of European industry; and the necessity
for global partnership and cooperation – these are the main
conclusions of the 6th European Economic Congress (EEC).
ging its economic model with a focus
on building up its internal market, so
that in the coming years it will susta-
in its position as a driving force in the
global economy and as the “factory of
the world”, while at the same becoming
a receptive market.
The European Union’s global aspi-
rations mean both economic entities
compete with one another on global
markets, but rivalry does not rule out
cooperation, which is still developing,
although its current scope remains
unsatisfactory to both parties.
The value of trade between the Eu-
ropean Union and China amounts to
approximately Euro 1 billion daily. We
were, however, reminded at the 3rd Eu-
ropean Union-China Economic Co-
operation Forum that we are still at the
beginning of this journey.
Both partners can be involved in a
successful economic cooperation but
they have to get to know each other
better, and review some of the ideas
they have about the form of this co-
operation. The time has come to leave
political declarations behind and deal
with hard facts.
Western European countries can also
draw on these achievements and com-
petences to develop their own economic
cooperation with more distant markets.
We should – as was noted by partici-
pants in the 2nd Africa-Central Europe
Economic Cooperation Forum, organi-
sed within the 6th European Economic
Congress – develop partnerships based
on trust, so that we can feel that inve-
stors from Europe come here to gain,
but also for Africa to profit from such
cooperation.
It has been observed that simple re-
lations of the “I have goods, you have
money” type are increasingly absent
from the world. In the chain of econo-
mic cooperation every country wishes
for some of the generated value to re-
main at source, to produce profit, jobs
and new chances for development.
China remains an important direc-
tion for European cooperation and fo-
reign expansion. However, before the
two parties have fully explored their co-
operation potential, reality has changed
again. China is in the process of chan-

6. EUROPEAN ECONOMIC CONGRESS 20146
A question was asked at the debate
concerning the opening of Europe to
the world; namely, whether Europeans
could share wisely, respecting their
partners and whether they could take
advantage of the economic situation
together and, based on it, build a com-
mon trust as a natural response to ri-
sks arising from unpredictable political
events in many regions of the world.
In concluding the debate on Europe’s
relationship with the world it was dec-
lared that this is not the time to build
cooperation within the closed compa-
ny of a few states. In fact, the time has
come to build a common position and
create new values on more remote and
less stable markets.
The most Important Alliance
The currently negotiated Transatlan-
tic Trade and Investment Partnership
(TTIP) on free trade will be the lar-
gest treaty of this type of global signi-
ficance, provided the negotiations are
successful.
The revival of trade and larger inve-
stments will certainly give a new in-
centive for economic development on
both sides of the Atlantic, but there
will also be problems stemming from
the fact that not all of the countries
(economies, companies) will be able
to take advantage of the opportunities
generated by the pact equally quickly.
One of the aims of the negotiations
is to make sure that entrepreneurs on
both sides of the Atlantic are sheltered
from the difficulties of the transition
period, during which the situation wo-
uld have to get initially worse, only to
improve after a while. Representatives
of both negotiating parties agreed that
these issues need to be treated as chal-
lenges rather than obstacles.
The European Union and the US al-
ready apply the principles of free tra-
de and competition, so it would seem
that negotiating the pact should not be
complicated at all. However, in prac-
tice the negotiations have proven this
assumption to be wrong.
Even a small change in EU-US re-
lations can translate into measurable
economic effects. These minor chan-
ges, to be more precise, there are hun-
dreds and thousands of them, are cur-
rently subject to intense negotiations.
“We would like both economies to
truly benefit economically from the
first day of the treaty” – declared the
negotiators on both sides, without try-
ing to marginalise the difficulties that
still have to be overcome. Both sides
of the partnership are developed eco-
nomies that are also ring-fenced by
extensive regulations, aimed at pro-
tecting various areas of life, be it the
natural environment, consumers or
employees.
This means that that one needs to be
very careful when introducing chan-
ges to regulations. In the realm of the
emerging EU-US compromise, there is
no place for lowering of environmen-
tal standards or worsening business
conditions at any point.
However, free transatlantic trade is
an enormous chance for Europe’s eco-
nomic growth, though with common-
ly accepted employment and environ-
mental protection standards. One can-
not compete with an entity that fails to
bear its environmental costs. In some
industries, these amount to 30% or
more of costs. Resistance by the US to
CO2
reductions may become a crucial
obstacle in finalising the negotiations
on free trade agreement.
Issues relating to energy and its cost
are an essential element of transatlantic
cooperation and an important element
of competitiveness. Companies in Eu-
rope pay almost three times more for
electric power and four times more for
gas than US companies. In this case the
US can have a real impact on energy
prices in the world, including Europe,
probably not directly through the, so
far problematic, import of liquefied
natural gas (LNG) but through chan-
ges on the global energy raw materials
market resulting from the American
shale gas boom.
Energy, Climate, Security
Almost every discussion on the future
of industry and security of energy sup-
plies in the European Union is at some
point transformed into a political de-
bate on climate, which only confirms
its enormous impact on economic life.
The EU climate and energy policy is
in the process of seeking a new iden-
tity. Climate objectives are yielding in
significance in favour of competitive-
ness and energy security. The European
Commission (EC) abandoned targets
with regard to the share of renewable
sources of energy and energy efficien-
cy, but set a new one of a 40% reduction
in CO2
emissions by 2030. This plan is
too ambitious and for many Member
States very difficult to achieve.
Intensive work on the shape of the
EU’s short- and long-term energy and
climate policy is well underway. New
concepts have arisen in the discussion,
such as costs, competitiveness and se-
curity of supplies. Poland is among the
countries that use these to build its own
negotiating position. An argument fin-
ding an increasing number of suppor-
ters is to link new objectives of EU cli-
mate policy with global negotiations.
Climate protection is, after all, a glo-
bal not a local problem. One of the
effects of introducing the EU climate
and energy package will, in the short-
-term, be the allocation of some in-
dustry sectors and lowered economic
competitiveness, particularly in the
Polish economy, which is why clima-
te policy and competitiveness on the
market should become a stimulus for
seeking solutions that will lower costs
related to producing energy from re-
newable sources.
Consistent building of competitive
European electricity and gas markets
would produce high synergy effects,
whereas introducing a very ambitio-
us climate and energy package without
foto:PiotrWaniorek,SzymonJankowski/ŻelaznaStudio

7. L e s s o n s f o r E u r o p e 2 0 1 4
considering the consequences, as well
as a lack of global consensus at climate
summits, imposes exceptionally large
costs on Europe and will not produce
the intended effects.
After all, the EU still consists of 28
national energy policies and only abo-
ut 5% of electric power is traded in-
ternationally. Congress participants
maintained that there has to be one
European energy system, which will
lead to reduced energy prices and in-
creased energy security.
Had the member states fully endor-
sed the EU directives and regulations,
Europe would be in a better situation
today. The conflict between Russia and
Ukraine is a warning that tells us that
the introduction of these regulations
to the energy market needs to be bro-
ught forward.
In the discussion on climate policy’s
reduction objectives, an important ar-
gument concerns the role of indigeno-
us fossil fuels and the guaranteed right
to their use. The argument is one of
the pillars of the energy union, pro-
posed by Poland’s Prime Minister Mr
Donald Tusk. Polish coal can and sho-
uld play a stabilising role in the EU’s
energy security.
Another security factor in the ener-
gy system at a regional and European
level should be shale gas. The Polish
government has clearly emphasised
that it will not allow the EC to block or
hinder possibilities for exploiting shale
gas, which is why Poland suggests that
the energy union be based on six pil-
lars: development of energy infrastruc-
ture linking EU countries and their
neighbours; solidarity mechanisms in
the event of any supply crisis; the use
of EU bidding power in negotiations
with suppliers; the use of indigenous
energy sources; diversification of ener-
gy supplies (e.g. gas from the US) and
reinforcement of energy security with
EU neighbours. The European Com-
mission is working on its first recom-
mendations regarding enhancement
of energy security in the EU.
Common Energy Market
The EU should make sure that EU
energy companies are treated outside
the European Union in the same way
as external companies are treated in
the EU market.
A homogenous power market will
evolve towards a two-product market:
electricity and power. The European
electricity market will still be strongly
regulated. The current geopolitical si-
tuation will cause the introduction of
even deeper regulations, although per-
haps different from the current ones.
So far, priority has been given to su-
stainable balance with climate issues
leading the way, but now energy se-
curity will become more prominent
than regulation.
There should be a remodelling of the
way the energy sector operates, with
energy security being its main priori-
ty. One of the symptoms of this chan-
ge will be the creation of power mar-
kets. But because interventionism in
the energy sector in Europe is already
rather high, it will be hard to introduce
new regulations without further con-
sequences to the present shape of the
market. Among political decisions that
will have a considerable effect on deve-
lopment of the energy industry should
be those regarding what is broadly un-
derstood as public aid, i.e., what is and
what is not allowed as far as state inte-
rvention in the market is concerned.
The next 3-4 years will be revolutio-
nary for building energy markets in
general, and in particular the electri-
city market. Two main trends can be
now observed in Europe. The first is
the rationalisation of support systems
for renewable sources of energy, which
is clearly visible but differs throughout
Europe. The second is building power
markets in response to the deep con-
The future of the free trade
agreement between the US
and the EU was discussed by its
architects, Mr Ignacio Garcia
Bercero, Chief Negotiator for
the EU and his US counterpart,
Mr Dan Mullaney.

8. EUROPEAN ECONOMIC CONGRESS 20148
sequences of introducing renewable
sources of energy supported by pu-
blic money.
New Industry in Europe
The EU has its own vision for respec-
ting climate, so it is time to create a
vision for respecting industry. The re-
cent crisis has been less hard to bear for
countries with a greater proportion of
industry. In economies with a relative-
ly high industry index (over 20%) the
impact of the crisis has been milder,
with Poland alone in not experiencing
a drop in GDP.
Europe must implement its reindu-
strialisation objectives, i.e., increase
the share of the industry in creating
GDP; not with old style industry but
with new, modern sectors, based on
knowledge and well-managed inno-
vation; the areas of industry that drive
export figures, production that is effec-
tive and yet environmentally friendly.
Reindustrialisation, which is a re-
turn to the right state of industriali-
sation, will not happen without help,
but only if industry is willing to invest
in Europe. In recent years many sec-
tors were allocated to countries with
lower production costs, and this is still
continuing. Without access to cheap,
secure and stable energy supplies, the
EU will find it hard to face the global
competition.
And so reindustrialisation in Euro-
pe must be accompanied by a rational
approach to all the price-making ele-
ments of electric energy. If the EU is to
be competitive, it must lower the costs
of raw materials and energy, because
these are much higher than in the US.
This situation is to a large extent a re-
sult of high taxes, tariffs and subsidies.
Challenges and Growth Drivers
The European Community is expe-
riencing difficulties. It is still fighting
the effects of the crisis, as future un-
certainty has replaced optimism, while
politicians are not ready to undertake
reform. Yet, there is still a future ahe-
ad of Europe.
The European Union is in need of
structural reforms enhancing compe-
titiveness. It is also important to im-
prove how the common market ope-
rates. New, more effective regulations,
which will not become burdensome to
business, are necessary. Centralisation
of the EU is a noticeable trend – more
and more competences are moved to
the European Commission, while de-
cision-making circles are moved to the
Eurozone countries. We might soon be
facing the origins of a separate budget
for the Eurozone.
In the scenario of having to fight the
crisis and with growing competition
linked to globalisation of the econo-
my, the European Union needs new
drivers of growth. Poland and other
Central European countries must look
for their chance for permanent, dyna-
mic growth within the EU, as otherwi-
se there is a real threat of stagnation at
a relatively low level.
The migration issue, as a result of
opening up the labour market in Eu-
rope, and due to the asymmetries in
standards of living among the Member
States, is one of the most contentious
topics in contemporary Europe. It at-
tracts conflict because it is often seen
as both an opportunity and a threat.
Migration in the modern world, as
was argued at the Congress, can be a
chance for individual economies to
develop. It should not be regarded as
a problem in terms of convincing in-
MrJanKulczykandMrZdenekBakala,twoofEurope’s
largestinvestors,andMrLechWałęsa,former
PresidentofPolandandNobelPrizewinnerdebated
theeconomicandsocialimpactofmigrationinEurope
andtheworld.
25%of global GDP is produced
in Europe, which also accounts for
60%of the world’s
social expenditure.

9. L e s s o n s f o r E u r o p e 2 0 1 4
vestors and representatives of the lar-
gest European companies. In fact, the
problem lies in social policy. If Euro-
pe wants to catch up with the world, it
has to think how to transform its so-
cial policy, which is in some aspects
anachronistic and ineffective due to
high costs.
Collectively, Europe represents 25%
of global GDP and 60% of all social
spending – even though its population
comprises only 7% of the global total.
When it comes to migration, in the
European mentality social policy and
economic factors still play a far gre-
ater role than non-economic factors.
In order for migration to become an
opportunity for the economy, we must
adapt our countries for the arrival of
immigrants. National social policies
should focus on those arriving who
create new value on the labour market.
Regulations for the European ban-
king sector, as introduced by the ban-
king union, might not bring about the
expected results, as we were warned
during the debates on finance and fi-
nancing investments.
New regulations, instituted as a secu-
rity measure to prevent a recurrence
of the crisis, must refer to the financial
sector in general, rather than the ban-
king sector only. They won’t protect us
from the effects of future upheavals in
the financial sector, nor will they solve
all Europe’s problems. Economic cri-
ses were, are and will be an important
issue, and the banking sector must be-
gin financing the real economy. How
should this be done? It is complicated,
but not impossible.
The costs of regulation will be high
and it will influence the cost of lending
for the real economy. In any case, the
European banking sector must also re-
build the trust that was impaired du-
ring the crisis.
In the areas of transport and logi-
stics, the European Union is starting
to implement its main plan for the
development of spatial and functio-
nal cohesion within the EU, i.e., bet-
ter management of the flow of goods
between Member States. Among the
many projects, the most important is
the construction of the Trans-Euro-
pean Transport Networks (TEN-T)
by 2030. This will streamline the main
communication routes, linking them
between the Member States; currently
many national networks end at coun-
try borders. It will also connect with
an auxiliary network that is supposed
to be ready by 2050. Development of
the TEN-T corridors will consolidate
existing logistical centres and enable
the opening of the new ones.
This is a great opportunity to redu-
ce transport costs, creating new ro-
utes and eliminating traffic bottlenecks
and, in consequence, will give serio-
us impetus to the EU internal market
and enhance the competitiveness of
the entire EU economy in the global
marketplace.
This calls for a campaign to promote
the new opportunities created through
the TEN-T network. One of its impor-
tant elements should be to demonstra-
te the tangible economic benefits pro-
duced by future investments, compri-
sing solutions pro-
grammed into the
EU transport poli-
cy, to promote bu-
siness through the
idea of the European corridors and
not only administration.
When carrying out infrastructural in-
vestments in countries that are other-
wise still trying to catch up with the
European leaders, more attention is
paid to utilising the largest amount
of funds and resources available. Ho-
wever, frequently more questions are
asked about the cost of infrastructure
maintenance, thus implying whether
this will actually produce economic
benefits, and if so, of what kind.
Technologies and innovation are also
among the drivers of economic growth
that is so much needed in a Europe
still threatened by economic stagna-
tion; which is why a lot of money is
allocated in the new EU financial per-
spective for a revival of cooperation
between science and industry, and the
commercialisation of research results.
In Europe, and particularly in coun-
tries that are below average in terms
of innovation, it must be remembered
that innovation means that knowled-
ge has to be translated into specific
technologies, products, or services.
Innovation is a process that requires
cooperation and support given to the
integration of business and academic
circles for conducting specific research
and development programmes.
The European Community
is experiencing difficulties.
It is still fighting the effects of
the crisis, as future uncertainty
has replaced all optimism,
while politicians are not ready
to undertake reform. Yet, there
is still a future ahead of Europe.

10. 10
Jerzy Buzek, Member of the European Parliament and President of
the European Parliament in 2009-2012, Chairman of the Patronage
Council of the European Economic Congress.
“Europe outlined its industrialisation programme in 2010 while develop-
ing the Europe 2020 strategy. As compared to the‘obsolete Lisbon strat-
egy which was no success’, the Europe 2020 strategy is primarily focused
on innovation. We are looking for equilibrium in the sphere of climate
policy. We have over-regulated the EU; everybody knows that (…). We
have managed to make climate policy less sharp, but not enough. We are
facing a great challenge in that respect.
It is necessary to balance economic and ecological aspects. We cannot
fight industry in the EU using an ideological slogan of climate protection.
Our objective is to have less CO2
emissions rather than less coal in the
power industry.”
Donald Tusk, Chairman of the Council of Ministers
of the Republic of Poland
“The conflict in Eastern Europe has shown the importance of energy
security for security as such. Discussion about the conflict has turned
into a fundamental debate on Poland’s security and that of the Western
community.
(...) The Polish government will continue to do whatever it takes in the
European and national forum so that a need to rehabilitate coal and
a need to develop energy independence is reflected in decisions that
must also rely on the use of state, financial and organisational tools. Not
because of pressure from one or another professional group or because
we are forced to do so by some doctrine, but because each politician re-
sponsible today for the Community must take practical steps to support
energy security. (...)
Obviously, the Polish power industry must be competitive; it cannot be
significantly more expensive than energy that is now primarily coming
from the East. However, we cannot be disillusioned that, just like military
security, energy security must also entail certain costs. The Polish mining
and power industries must again become a fundamental part of energy
security that requires state intervention.”
Ignacio Garcia Bercero, chief EU negotiator of the Transatlantic
Trade and Investment Partnership (TTIP)
“These could be the most important negotiations that the EU is involved
in. Why did we decide to start them? First, we are convinced that a
negotiated agreement will generate growth both in the EU and in the
US. Our estimates show that as a result of the agreement GDP may grow
by 3 percent. We have to become focused so that the agreement brings
tangible economic benefits from day one.
This is a historic opportunity for the EU and the US. Both systems can
work better jointly. However, it will be no easy task to reconcile their
interests. But collaboration may generate a better quality of legislation.
When the agreement is signed, the US and the EU will exert a joint global
impact on the development of standards and legal regulations. All of
which is important when the sense of a global economic deal is taken
into account. The opportunity for mutual impact will also be material in
view of the economic interests of the US and the EU.”
Dan Mullaney, chief US negotiator of the Transatlantic Trade
and Investment Partnership (TTIP)
“Both the US and the European Union are already closely collaborat-
ing economic organisms. So why do we then talk so much of a need to
tighten such collaboration? That it will bring benefits to both parties. The
question is about jobs, more jobs and higher wages.
We will be trying to do away with certain tariffs or taxes that adversely
affect trade. When speaking about commercial collaboration, we do not
only mean the exchange of goods. Services are also important. In this
area, it is necessary to pursue a more active policy. For instance, certifica-
tion is a very important issue. It seems that despite very restrictive US
laws, our products will have to be re-certified in the EU. The problem
also applies to European products in the US. If we manage to solve those
issues in the negotiations, the regulatory system will be better and that
will generate specific benefits.”
EUROPEAN ECONOMIC CONGRESS 2014

11. OPINIONS
Howard Chase, Director of Government Affairs, Dow Europe
“We are very much interested in the outcome of the EU-US negotiations.
Although customs tariffs are not high, nevertheless with large sales
volumes they become an important cost element. It is also important
that double certification be avoided. The savings can be applied for more
productive activities.”
Josh Rice, Chief Technology Officer,
WW Public Sector at Microsoft
“Harmonisation of rules in trade exchange between the EU and the US
would be a tangible benefit. Microsoft is being transformed into a service
company and that is why we follow particularly closely the provisions
relating to services.”
Ian Brzezinski, Atlantic Council, Poland
“One of the effects of the Crimean crisis will be new levels of collabora-
tion in energy. I think that Donald Tusk’s proposal in that respect (energy
union – editor’s addition) is very important. This may be the beginning
of a discussion in Europe on how we can best coordinate energy policies
and how the European Commission as the European government may
play a more important role in developing and implementing a common
energy policy. (...)
In the United States a consensus exists that we should abandon restric-
tions on LNG exports. A discussion has been under way whether to
export gas, but on the terms and conditions of such exports. I hope that
soon Congress will consent to gas exports by the United States.”
Janusz Piechociński, Poland’s Deputy Prime Minister
and Minister of Economy
“In the economy, we fully understand the old Polish proverb:“A good
housewife keeps her eggs in several baskets”. This is why such countries
as Togo, Ethiopia and Pakistan are important to us, and not just existing
great partners like Japan, Korea, or China.
Today, no market may be underestimated. Small ones can be entered
even with relatively little capital. They are worth it! Even more so as col-
laboration with countries that are more distant from Poland may bring
higher value added due to higher margins. However, those countries
should be treated like partners.”
Kamel Bennaceur, Tunisia’s Minister of Industry,
Energy and Mining
“Over recent years collaboration between Tunisia and Central Europe
has much improved. Tunisia is able to export various products and offer
tourist services, but it also looks for investors in such sectors as the power
industry or mining.”
Essossimna Legzim-Balouki, Togo’s Minister of Trade
and Private Sector Promotion
“We offer great investment opportunities, e.g. in mining, agriculture,
but also in transportation. Today, in Togo a foreign investor can set up a
company within 24 hours and we offer full security measures for such
businesses.”
L e s s o n s f o r E u r o p e 2 0 1 4

12. EUROPEAN ECONOMIC CONGRESS 201412
Katarzyna Kacperczyk, Deputy Minister
of Foreign Affairs, Poland
The Go Africa Programme has mobilised not only government circles.
Last year saw a growing interest in African countries among Polish
enterprises in terms of trade and investments. There was also visible
interest among African countries in collaboration with Polish compa-
nies. I trust we will seize the opportunity to rebuild our relationships
with African countries. Old friends like Libya come back, and new ones
arrive, like Togo.”
Xinagyang Tang, CEO of Xinhua Topsky Consulting
“Chinese businessmen do not perceive economic relations as a strictly
economic matter. Very often they represent state-owned companies and
for them political decisions by the Chinese authorities are very important.
State-owned companies look at the energy sector and transport since
those are long-term investments, albeit with a limited rate of return. Ad-
ditionally, private funds may be interested in the tourist sector, logistics
and the food industry. The structure of Chinese exports is gradually
changing from being predominantly focused on raw materials and
energy towards a larger share of agricultural produce. We may invest in
farms in East Asia or in Ukraine.”
Zdenek Bakala, Deputy CEO of NWR, co-founder
of the BXR Group
“Migration is an opportunity for me. As a result, as an investor,
I have a more diversified talent portfolio.”
Danuta Huebner,
Member of the European Parliament, EU Commissioner
for Regional Policy
“Europe is also a matter of moods and emotions.The crisis has contributed
a lot to negative thinking about Europe, and these intensified negative feel-
ings have been compounded with another of the Community’s weaknesses:
the European Union is ineffective in its communication with people.”
Pierre Bruhler, French Ambassador to Poland
“We were in the vanguard of drafting the European Constitution, but it
was the electorate that opened our eyes when they rejected the proposal
in the referendum. The Treaty of Lisbon now in force is not ideal, but
continues to provide room for operation for European politicians. These
regulations have not yet been fully implemented. Perhaps, instead of
starting a debate on a new treaty, we should first draw on what is avail-
able in the present one?”
Hongjian Cui, Director of the China International
Studies Institute
“China is a country that in the near future will largely invest abroad,
since capital management is a major challenge for our country. Chinese
foreign investments and their structure will be gradually changing. At
present, entering the European market is a major challenge for China. We
lack understanding of mutual expectations (...) The Chinese government
understands the existing hurdles for business but more reforms are nec-
essary to remove them. Hope is being generated by structural changes in
the Chinese economy. We need only a little time.”

13. Jan Kulczyk, Chairman of the Supervisory Board of Kulczyk
Investments
“The EU has exhausted its ideas for the future. We have forgotten that the
EU was set up to improve the operating conditions of the economy in
the EU. Perhaps the situation in the East will make us aware that the EU
should become a competitive part of the world economy.
Energy policy means development of a power infrastructure. In the EU
there are 28 infrastructures that are poorly interconnected. In the EU, we
have to create one common energy system that will result in reduced
energy prices and improved energy security.”
László Andor, EU Commissioner for Employment,
Social Affairs and Inclusion
“The situation in the European labour market has been slowly improv-
ing. We are looking forward to better news in the second half of the year.
Positive symptoms are related to the deferred effects of the rehabilitation
efforts in the Eurozone. The European Central Bank interventions of 2012
were transferred to the real economy last year and now we can see the
first effects in the labour market.”
Lech Wałęsa, President of Poland 1990-95,
Nobel Peace Prize Winner
“If we want to develop larger structures, and we do have to develop
them, we should ask the question, which are the most important issues
that require such expanded structures and which do not? Which should
be subject to continental structures and which to global ones? If we can
identify these issues and obtain the primary consent of the stakeholders,
it will be easier to think how to implement such plans.”
Maciej Grabowski, Poland’s Minister of the Environment
“Intensive work has been going on with reference to the EU’s energy and
climatic policies over the medium- and long-term. The discussion centres
on new issues like costs, competition and security of supplies. These as-
pects have not previously been discussed. We are building a negotiating
position on these aspects that will be realistic, constructive, and will take
Polish interests into account. (…)
Climate policy is a sign of the times. Today’s crisis redefines policy and
aligns political objectives with technological potential and economic
principles. Recent events have shifted objectives to other emphases
and instruments; the EU, however, will retain its climate policy. Poland
will actively participate in searching for a new way. The issue is about
development of Poland’s industry and also about the environment. These
aspects have to be better aligned.
We want our industry to be protected against unfair competition from
countries that are not affected by the climate policy.”
Jaroslav Neverovič, Lithuania’s Minister of Energy
“Climate policy is obviously extremely important and we should continue
what we have been doing; however, not at the expense of competition,
not at the expense of not doing enough to secure energy supplies. (…)
We should focus on work so that we move from talking to doing, so that
we really begin to build a common energy market in the EU. We should
complete implementation of the Third Energy Package, identify transmis-
sion operators so that all companies have equal access to the market,
and we should harmonise the operating rules of these markets, improve
energy effectiveness and use the natural resources we have in Europe.”
L e s s o n s f o r E u r o p e 2 0 1 4
OPINIONS

14. 14
Zoltán Cséfalvay, Minister of State in Hungary’s
Ministry for National Economy
“I share the position of Poland’s government that each EU Member State
should develop its own energy mix, subject to internal conditions. Cen-
tral European countries have a strong industrial base. In order to develop
industry and maintain jobs, it is of crucial importance that access to
inexpensive energy is assured. If we want to be competitive as a region
and in the EU, we have to resolve the issue of acquiring inexpensive
energy sources.”
Mari Kiviniemi, Finland’s Prime Minister in 2010-2011
“If EU Member States had fully implemented European directives and
regulations, Europe would be in a better situation today. The conflict
between Russia and Ukraine is a warning that we should accelerate
implementation of these regulations in the energy market. (...)
In order to achieve energy security in the EU, all Member States should,
inter alia, improve their energy efficiency and energy savings – this is to
be done by the Member States. Also, RES should be promoted, as well as
research into new technologies in the field.”
Surojit Ghosh, Country Manager ArcelorMittal Poland
“Industry requires cheap and competitive energy – this is what we are
missing in Europe right now. Inexpensive energy is the only way out of
the current difficult economic situation in the EU.”
Zdzisław Gawlik, Poland’s Deputy Minister of Treasury
“Energy security is key to each country’s economic development.
We can proudly speak of an investment boom in Poland’s power industry
that is driving the entire economy. By 2020 companies held by the State
Treasury will invest about PLN 30 billion in the power sector and PLN
60 billion in what is more broadly understood as the power generation
industry.”
Maciej Bando, President of the Energy
Regulatory Office, Poland
“We see that energy has become a core issue in meetings of various po-
litical bodies as energy security has become important; additionally, this
is combined with a relatively complex situation in Poland in that we are
about to end a certain period of market regulation. The old tariff rules for
distribution of electrical energy are ending and we are entering a period
when we will be building a gas market – in a determined and fast way.”
Shigehiko Morimae, Managing Director at Chugoku
Electric Power
“Among the major weaknesses, both in the United States and in Europe
where the energy market has been liberalised, is who will build new
energy generation units that will ensure energy supplies at peak hours.”
Paweł Olechnowicz, President of the Management Board of Lotos Group
“We have to speak about diversified supplies not because there is some-
one we do not like, but because this is healthy. A free market in general –
and a free energy market in particular – is the basis for further operation.”
EUROPEAN ECONOMIC CONGRESS 2014

15. Dariusz Lubera, President of the Management Board
of Tauron Polska Energia
“The recent economic crisis has demonstrated that those economies in
which the share of industry in GDP has been higher were less affected.
If so, I trust that the new European Commission will treat reindustrialisa-
tion as an objective. However, proposed CO2 emissions reductions of
40 percent by 2030 are completely opposite to reindustrialisation, and
this brings us to energy prices. From the viewpoint of the energy sector,
investments that have already been started in Poland are nothing but
reindustrialisation. But can they be continued? If the climate objectives
remain unrevised, it will not be easy. I hope that the new European Com-
mission will find reindustrialisation in Europe as an objective of its own.
Christoph Sikora, Dow’s General Director for Central Europe
“As a chemical company, we are highly dependent on energy prices and
the availability of raw materials. If we are to remain competitive, we often
have to decide to invest in those places where we have better access to
raw materials or cheaper energy. If the European Union does not focus
on implementing more competitive energy policies, we are afraid this
trend will intensify.”
Prof. Adam Gierek, Member of the European Parliament
“Until recently, Members of the European Parliament were barely interest-
ed in the economic effects of the EU’s climate policy. Now, this is chang-
ing and increasingly realism is taking the upper hand over idealism.”
Janusz Steinhoff, former Deputy Prime Minister
and Minister of Economy, Poland
“I am afraid that the ambitious goals with respect to CO2 emissions in
Europe will affect individual economies in different ways; in particular,
Poland will be paying the highest price as it has CO2 emissions some 50
percent higher than the EU average, which is due to the structure of the
energy sources employed in power generation. On the other hand, that
will result in emission allocation or allocation of a portion of the industry
outside the EU borders.”
Pavel Cyrani, Member of the Management Board of ČEZ
“We are in a situation of major regulatory pressure. Basically, there is no
new investment in the sector. Investments in Europe are not growing
and we now have a situation of under-investment. As we can already see,
supplies in certain regions are insufficient. There is no common European
approach to the issue.”
Jarosław Zagórowski, President of the Management Board
of Jastrzębska Spółka Węglowa, Poland
“Mining today has to face the situation of falling prices for thermal
and coking coal. Coal will remain in Poland’s energy mix; however, the
question arises: will this come from Polish mines? At current output
levels, Poland has no impact on coal prices in international markets. We
have to improve efficiency and support the competitive advantages of
Polish coal.”
L e s s o n s f o r E u r o p e 2 0 1 4
OPINIONS

16. 16
Friedbert Pflüger, Director of the European Centre for Energy
and Resource Security (EUCERS)
“Having experienced a crisis related to gas deliveries via Ukraine, the EU
has started to think more seriously about its energy security. Evidence of
the importance EU attaches to energy issues is the appointment of an EU
Commissioner for Energy”
Johannes Hahn, EU Commissioner for Regional Policy
“The objective of the Community is to eradicate differences in the levels
of European transport infrastructure resulting from the political division
of the continent after World War II. In the last seven years, EU has co-
financed investments in transport infrastructure of 82 billion Euros, of
which one half is related to materially improving the quality and safety
of the TEN-T network. The objective for the current EU budget is the
completion of missing road links. However, infrastructure by itself will
not bring economic growth in Europe. Investments in innovation and
enterprise development are equally important.”
William Lacy Swing, Director General of the International
Organisation for Migration (IOM)
“Over the next few decades there will be a shortfall in the labour force
of millions of people. From that perspective, I would say that migration
is a problem to be solved, but it is also an opportunity to solve other
economic problems. However, we need to get countries ready to accept
immigrants. Migrants may help in the development of societies. We
should not be concerned about those that leave, but instead focus on
those who come to us.”
Marek Woszczyk, President of the Management Board
of PGE Polska Grupa Energetyczna
“Reindustrialisation is great news for the energy business since this
means an increased demand for the energy that power companies
produce. Reindustrialisation, which means a return to previous levels
of industrialisation, will not happen by itself. It will come when industry
is willing to invest in Europe. The average EU company pays 20 percent
more for electrical energy than in China, 65 percent more than in India,
and double the price in the US. Is it then possible for industry to invest
here in such conditions? Will production in the industrial sector be able
to generate sufficient margins to reinvest its earnings and attract indus-
try to Europe? (...)
All those issues lead us to the question of climate policy. A climate policy
proposing a“one size fits all”solution is inadequate as it will not identify
the strengths of individual EU countries and thus will miss the opportu-
nity to capitalise on the achievements of these strengths.
Economics knows no boundaries. The inefficiencies of individual
Member States’economies are immediately internalised in the costs of
the winning economies and as a result no one wins. The rationalisation
of climate policy should take into account the strengths of individual
economies and build from there.”
Elżbieta Bieńkowska, Deputy Prime Minister,
Minister of Infrastructure and Development, Poland
“Lots of work has been done to upgrade Poland’s infrastructure to West-
ern standards. By 2020 Poland has to have a complete network of express
roads; particularly as the EU budget for 2014-2020 will be the last such
large injection of funds for us from the EU.
Large infrastructural investments drive the labour market and have an
anti-crisis impact on the economy.Within the Operational Programme
Infrastructure and Environment budget of 27.5 billion Euros, 18.5 billion
Euros is to be allocated to the trans-European transportation network
(TEN-T). This is of particular importance in the context of development of
cross-border road and railway connections, primarily with Slovakia and
the Czech Republic. Such an opportunity is presented by the Connecting
Europe Facility (CEF).
EUROPEAN ECONOMIC CONGRESS 2014

17. L e s s o n s f o r E u r o p e 2 0 1 4
Paweł Olechnowicz, President of the Management Board
of Lotos Group
“We have to speak about diversified supplies not because there is some-
one we do not like, but because this is healthy. A free market in general –
and a free energy market in particular – is the basis for further operation.”
Herbert Wirth, President of KGHM Polska Miedź
“The reasoning behind our foreign investments was foremost the need
for product diversification. We make money on copper and silver and
we also want to move into raw materials such as platinum, palladium or
nickel that are not available in Poland. The other reason to go outside of
Poland was to differentiate our revenue sources . We have had to develop
assets that are much more liquid than those in Poland. Furthermore, the
costs generated by KGHM outside of Poland are much lower.”
Rafał Trzaskowski, Minister of Administration and
Digitization, Poland
“Ten years ago when we were joining the European Union, only 5 percent
of Poland’s population were making purchases over the Internet; now it
is 30 percent. In the last decade, the number of Poles with Internet access
in their homes has almost tripled. Trade over the Internet is a very inter-
esting reflection of what is going on in the economy and, for example, is
correlated with inflation – the higher the inflation, the faster the growth
of trade in the Internet.”
Khurram Dastgir Khan, Minister of Trade, Pakistan
“Since 2013 we have had a government in Pakistan elected by the people
that is focused on liberalising trade, the economy and power industry
policies. We are trying to reach various countries and establish contacts
based on trade and not assistance. The European Union and Central
and East European countries have become the area of focus. We want to
learn from Central European countries that used to have problems with
their neighbours on how to trade with all partners. We want to draw on
the experience of how to shift from a centrally planned economy to a
free market one. Economic collaboration is not just about trade, but also
investments (and the need to protect them) and communication – both
individual and in the sense of connecting bank systems or stability of
supply chains between collaborating companies from various countries.”
Jakub Karnowski, President of PKP Polish State Railways
“Before Poland joined the EU, funds assigned to the maintenance of
railway lines were at most one half of the amount required to prevent
the infrastructure from degrading. Now, Poland is implementing its own
“Marshall plan”. In 2013, PKP PLK spent a record high of PLN 5 billion
on investments. In 2014, it will be PLN 8 billion. The work in progress is
onerous for the carriers and passengers, and this year will be the most
difficult. However, we have to go through this process in order to feel an
improvement afterwards.”
OPINIONS

18. 18
Dialogue,
scale and
prestige
The European Economic Congress is
primarily about people and dialogue
– the direct, live debates between
Congress participants contribute as much
to its exceptional value as the official
programme does.
The debates and speeches don’t cover all
the themes discussed over the three days
of the Congress. After all, many of the
meetings take place out of the spotlight
and away from the microphones. Some
are social, but there are also those that
result in very specific business initiatives.
Thanks to all the media attention, the
message of the Congress is widely
discussed long after the debates are
finished and our guests have departed.
In fact, it becomes part of a broader public
debate on the future of Europe.
sessions, debates and
accompanying events
Speakers and Guests
from around the world
100
EUROPEAN ECONOMIC CONGRESS 2014

19. news and media titles
covering the Congress
Distinguished guests
from Europe
– politicians,
businessmen and
influential figures
200

20. www.eecpoland.eu