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The Warsaw Voice » Business » July 1, 2009
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Tips From Brits
July 1, 2009 By L.¯.    
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The British-Polish Chamber of Commerce has compiled a document with suggestions for changes in a number of key areas in the Polish economy. The chamber plans to hand in the document to Polish government officials and members of the Polish-British Parliamentary Group.

The document, which the Chamber of Commerce calls a White Paper, urges more flexible employment regulations based on replacing traditional work contracts with assignment contracts for employees expected to perform specific tasks or projects.

According to the British-Polish Chamber of Commerce, extra costs unrelated to salaries are too high in Poland, which hits the competitiveness of Polish companies compared with their counterparts in Western Europe. The Social Insurance Institution (ZUS) and the Agricultural Social Insurance Fund (KRUS) are both in need of reform, the chamber says.

The Polish tax system is far less efficient than its counterparts in other EU member states, the document says. The system's maintenance costs the government zl.2.30 for every zl.100 collected from taxpayers, whereas in Ireland the figure is only 0.90 euros per every 100 euros collected.

Another problem is that decision-making processes in Poland are too long, which discourages investors, the chamber says. Obstacles to obtaining EU funds for the development of infrastructure should be "identified and minimized." Administrative procedures need to be simplified.

According to the British-Polish Chamber of Commerce, Poland's labor market can be "optimized" through the use of EU funds for human capital development. The document also calls for the creation of new jobs through self-employment. This would help reduce labor market barriers, especially for university graduates, the chamber says.

Moreover, the document proposes a strategy for boosting income from tourism. According to the chamber, the tourism sector, which accounts for a large part of GDP in many European countries, could play a major role in creating new jobs and considerably increasing government revenue in Poland.

Finally, the document calls for measures to take better advantage of the potential offered by the arts sector. In Britain, this sector, including the film and music industry, visual arts and design, accounts for 15 percent of GDP. In Poland, the figure stands at a mere 2-4 percent, the chamber says.
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