WI DAILY NEWS
Date: 21 July 2020
EU budget and Recovery Fund | US investments in Poland
EU leaders agreed on budget and Recovery Fund
The Recovery Fund will consist of EUR 390 bn in grants and EUR 360 bn in loans. It will be attached to a Multiannual Financial Framework, the budget of the Union for 2021-2027, worth a total amount of EUR 1.074 trillion. The leaders of 27 countries agreed to it unanimously at around 5:30am CEST on Tuesday.
Polish Prime Minister, Mateusz Morawiecki stated that the agreement gives Poland more than EUR 124 bn in direct grants and, along with privileged loans this is a total amount of EUR 160 bn in current prices for the country. Poland also negotiated an additional EUR 600 mln for regions that need funds for developing the most.
US investments in Poland totaled USD 62.7 billion
US investments in Poland have already reached USD 62.7 billion, including over 50 percent or USD 38.3 billion, which have been underestimated.
Aside from the value of these investments, it is crucial to note their assets which are worth over PLN 200 billion (USD 51.3 billion). US companies employ in excess of 300,000 in Poland.
According to a report by the KPMG audit-advisory company, US investments in Poland account for 11 percent of all foreign investments in the country while the invested capital is estimated at USD 24.4 billion. But their undervalued capital could even be worth USD 38.3 billion. KPMG added that many US companies operating in Poland represent the technological and IT sectors, like, for example, Google, Microsoft, Cisco, Dell, Intel, Motorola, or IBM, and that they open R&D centres in this country.
Polish Development Ministry underlined that Polish-US cooperation has been developing, and that in 2019, the US was Poland’s eighth biggest economic partner with regard to imports and exports. In 2019, Poland’s exports to the US grew by 4.3 percent year on year to nearly USD 7.6 billion, and imports went up by 10.7 percent to USD 8.5 billion.
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