Polish workers “always responded whenever I asked,” Mr. Marchionne said at the Paris Motor Show in October. “I feel an exceptional responsibility to the people there.”
So when Fiat said recently that it would lay off a third of the work force in Tychy, or about 1,500 people, it was a harsh reminder: Even with the healthiest big economy in Europe, Poland cannot escape the Continent’s economic downturn.
Polish growth is expected to slow to as little as 1.5 percent next year, according to World Bank estimates, from 2.1 percent this year. That still compares favorably with the neighboring euro zone, where most countries are either in recession or just barely growing. With a gross domestic product of €369.7 billion in 2011, according to the European data agency Eurostat, Poland ranked ninth among the 27 E.U. countries, just below Belgium and a rung above Austria.
During much of the region’s debt crisis so far, Poland has counted itself fortunate that the troubles began before the country had joined the euro currency union. By being part of the E.U.’s common market, but not bound by euro strictures, Poland has been one of the Continent’s rare economic good-news stories. But the deceleration in Polish growth, which has prompted the central bank to begin a series of interest rate cuts to stimulate the economy, has underscored the country’s exposure to slumping euro zone consumer markets.
The country’s long border with Germany, and its own skilled, low-cost labor force, make Poland an attractive place to make heavy consumer goods like cars and home appliances. General Motors’ Opel unit, suffering from many of the same maladies as Fiat, has a plant in Gliwice, though it has not announced job cuts there. Bosch, Whirlpool and Electrolux all make household appliances in Poland for the European market.
The country’s slowing growth is likely to put pressure on Polish leaders to address some underlying problems, notably an overbearing government bureaucracy.
“Luckily, we are doing quite well so far,” said Jan Krzysztof Bielecki, a former prime minister who now advises the current prime minister, Donald Tusk, on economic issues. Speaking at a recent conference co-convened by the International Herald Tribune in Warsaw, Mr. Bielecki added, “We still have some space for improvement.”
Yet, despite the economy’s slowing velocity, Warsaw remains a fount of optimism, with ambitions to be a regional financial center. The city somehow manages to seem cheerful, even with its legacy of drab Soviet-era architecture.
In downtown Warsaw recently, as a light snow fell, skaters pirouetted at a temporary ice rink set up in the shadow of the Palace of Culture and Science, a monstrous high-rise building built by order of Josef Stalin in the 1950s.
“I really believe Warsaw is becoming the capital of Central and Eastern Europe,” said Hanna Gronkiewicz-Waltz, mayor of the city. “In these difficult times Warsaw offers not only dynamics but stability.”
Although Vienna emerged as the gateway to Eastern Europe after the end of the Cold War, Warsaw has since surpassed it by some measures — like trading volume at the stock exchange.
And economic success has translated into political prestige. When European leaders accepted the Nobel Peace Prize on Dec. 10, Mr. Tusk, the prime minister, sat next to Chancellor Angela Merkel of Germany, the most powerful leader in Europe.
Poland remains a source of profit for companies in Western Europe that badly need them. “For us it’s really a bright spot in the European market,” said Anna Wiosna, manager of strategy development for the Polish unit of Hochtief, a German construction company that has upgraded Warsaw Chopin Airport, among other large projects.
Article source: http://www.nytimes.com/2012/12/18/business/global/poland-finds-its-not-immune-to-euro-crisis.html?partner=rss&emc=rss