What subsidies does Poland receive from the EU? “The subsidies are over”: why Poland is quarreling with the EU

20.06.2019 Cell phones

The word “velvet” brings to mind jewelry laid out on soft decorative pillows, carriages, dresses with corsets, ancient portraits, golden thrones and heavy canopies over beds. This word is associated with luxury, beauty and bliss: the Velvet season, velvet skin. The concept has a huge impact on human consciousness: the velvet tree (in botany), the velvet revolution (bloodless, peaceful), black velvet (a way to test the quality of safety razor blades).

Velvet is used to make luxury goods, clothing, home textiles, and furniture upholstery. This is a soft, delicate, noble material that has not lost its attractiveness and high status over the centuries. We will tell you what kind of fabric velvet is, its natural or synthetic composition and what properties this material has.

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Girl in a velvet dress

Most likely, the word came into Russian from the German expression barchent. In French, velvet was called velours, and in English - velvet. It is worth noting that they are considered independent fabrics with a velvety surface and should not be confused - the characteristics will be different.

In 1247, the velvet weavers' guild officially settled in Venice, the famous Italian merchant city. In the 16th century, the material subjugated all the royal courts to its charm, and Europe started talking about velvet. Only in the 17th century did they begin to independently produce this noble fabric in Russia.

Expensive dyes, gold and silver threads were used for production. Robes, cloaks, dresses were sewn from velvet, and hats and shoes were made. Finished items were decorated precious stones and embroidery.

Queen Elizabeth in velvet

In 1543, they tried to ban velvet in France, because even the richest nobles went broke buying this material. For some time this fabric was the privilege of royal families. Queen Elizabeth I, Napoleon Bonaparte, Charles VII and many other historical figures are depicted in exquisite velvet clothes.

Currently, velvet is made both from natural threads and with the addition of synthetics. The material is dyed in various colors and, despite the relatively high cost, velvet items can be afforded not only by monarchs who have survived the cycle of centuries.

Manufacturing

The most valuable varieties of velvet are made from natural silk, the same fabrics supplied to European rulers centuries ago. More affordable options contain cotton, viscose, wool, and synthetic fibers. The manufacturer must indicate the detailed composition on the label.

There are two methods for making velvet (as well as other pile fabrics).

  • Split - two independent fabrics of twill or plain weave are connected to each other with a thread, and then the connecting fibers are cut. The result is a material that is smooth on the inside and has a fleecy, “shaggy” front side.
  • Looped - loops are pulled out of a knitted fabric, which are also cut.

The result is a dense, soft fabric with exquisite shine and shimmer. Velvet fabric is decorated, embellished and dyed in the following ways:

  • print the design (printed velvet);
  • embossing is performed (the pile is laid in the form of a pattern and design, secured with a hot press);
  • embroider (in industry they use computerized embroidery machines).

Sometimes velvet is confused with a number of fleecy fabrics, but they are all different from each other:

  • velor is an artificial analogue of leather material with pile on front side;
  • – an artificial analogue of specially treated leather, velvety on both sides;
  • plush – material with high pile;
  • – striped cotton fabric with ribbed pile.

Characteristic

The long history of velvet speaks not only of the unique type of fabric, but also of its high practical characteristics. Advantages of the material:

  • does not cause allergies (if made from natural fibers);
  • aesthetic, attractive and expensive appearance;
  • dense, soft and comfortable to the touch;
  • absorbs moisture well, allows air to pass through and does not become electrified;
  • retains positive qualities for a long time and does not deteriorate;
  • holds its shape well, does not shrink or deform.

Flaws:

  • collects dust and absorbs dirt;
  • fades in the sun;
  • takes a long time to dry;
  • products require lining fabric to increase strength;
  • difficulty in processing (sewing at home requires certain skills and experience).

To ensure that shortcomings do not interfere with the convenient use of velvet in everyday life and in the wardrobe, you should carefully care for the products. Then the material will serve faithfully for many years.

Application

Velvet is a symbol of prosperity, wealth, exquisite sophistication and high status of the owner. Products made from this fabric are always elegant and devoid of even the slightest hint of everyday life.

Velvet is made from:

  • gloves and hats;
  • shoes and bags;
  • (armchairs, chairs, poufs, sofas);
  • curtains, canopies, drapes, tablecloths;
  • decorative pillows;
  • jewelry (brooches, velvets);
  • scenery and theatrical costumes;
  • vests, jackets, jackets, skirts, blouses, trousers;
  • a variety of elegant dresses (evening, cocktail, wedding).

Velvet in a Baroque style interior

It is believed that the abundance of velvet in the wardrobe and in the interior is a sign of bad taste, like an excessive passion for jewelry. That is why velvet items should be a bright accent surrounded by neutral details.

Care

Velvet is considered a “capricious” fabric, an aristocrat among textiles. They try to wash the material by hand, without using a washing machine. Harsh powders, bleaches and conditioners should be avoided. During washing, the velvet is not twisted or rubbed with hard brushes.

To speed up the drying of things, after washing the velvet is blotted with a towel and dried on a horizontal surface, spread out or on hangers. Smooth the fabric with steam, on the weight, so as not to touch it with a hot iron.

Items of clothing are stored on hangers. If it is necessary to fold the fabric (for transportation, for example), then fold the items by turning them inside out.

Velvet is a noble fabric that has been considered an attribute of luxury and prestige for more than seven hundred years. The material has a number of advantages, but requires careful and skillful care. Products made from velvet look elegant, decorate the figure, create a festive atmosphere, and make the interior refined and elite.


President of the European Council Donald Tusk said that Poland may leave the European Union. According to the European leader, the current leadership of the country is kept in the EU only by financial subsidies. At the same time, Tusk accused the Polish authorities of “hidden support Russian exchange rate to undermine liberal democratic and Western values.” RT found out for what purpose the politician started talking about Poland’s exit from the EU and whether Warsaw’s Euroscepticism contributes to the normalization of relations with Moscow.

Former Polish Prime Minister Donald Tusk, who has headed the EU's supreme body, the European Council, since 2014, said in an interview with the Polish publication Tygodnik Powszechny that Warsaw may raise the question of leaving the EU if the country turns from a recipient of European subsidies into a donor.

“I can easily imagine a situation where Poland is among the net donors, then the Polish government may decide that it is time to ask the Poles whether they want Poland to continue to remain in the EU,” the politician said.

According to him, the current leadership of Poland “at least does not perceive with enthusiasm” the country’s membership in the European Union.

Poland annually receives subsidies from European funds in the amount of up to €10 billion, but after the UK leaves the EU, which is planned for 2019, everything may change. After the EU loses one of the most powerful economies in Europe, all contributions to European funds that the United Kingdom previously made will fall on the shoulders of other EU member countries, including Poland. In addition, the EU plans to reduce spending between 2020 and 2027. This means that Poland will pay more to the EU budget than it receives from it.

“For Law and Justice (PiS, the ruling party in Poland - RT), the benefits of EU membership come down only to the balance of payments,” says Tusk. “They completely ignore other benefits, such as the single market, rule of law, security guarantees and the like. Until we become a pure donor, the game is worth the candle for them.”

He noted that the conflict between him and the leader of the Law and Justice party, Jaroslaw Kaczynski, is a question of the foundations Polish politics and “the debate is not about what Europe should be, but about whether Poland should be part of it.”

Exit prospects

“There are some real reasons behind this statement, because the current Polish people are largely disappointed European Union and how the control system is structured in it. The issue of values ​​is especially important for Polish society. Current liberal European values ​​do not suit Polish society and cause quite strong rejection,” Oleg Nemensky, a leading researcher at RISI, noted in a conversation with RT.

The post-communist country has become a real investment paradise.

Poland has become a leader among Eastern European countries in attracting foreign direct investment into the economy. Foreign capital was interested in stable economic growth and ease of doing business.

According to the World Investment Report 2015, prepared by the United Nations Conference on Trade and Development (UNCTAD), Poland is among the twenty largest recipients of foreign direct investment in the world. In 2014, their total inflow into this country amounted to almost $14 billion. Poland's strongest advantages are: stable economic growth, large sales market, numerous tax incentives and convenient geographical position, writes the website “Belarusians and the Market”.

In the World Bank's Doing Business 2017 ranking, Poland was ranked 24th among 190 countries, and in the report by FDI Intelligence (a division of the Financial Times Ltd.) it was ranked first in Europe and third in the world (after China and the USA) in terms of attractiveness of investment in manufacturing.

Stable economic growth

The Polish economy is one of the fastest growing among European countries. It is perhaps the only one on the continent that has managed to successfully resist the global economic crisis. Poland's state budget is in much better shape than the budgets of other EU countries.

According to the forecast of the European Commission, in 2017 Poland's GDP will increase by 3.7%, while the EU average growth will not exceed 1.9%. Main driving forces economic growth are investments, private consumption, including through significant government subsidies in the form of child benefits, and exports, which demonstrate a faster pace than imports.

The labor market is also performing well. Unemployment is expected to drop to 6.3% this year.

Large sales market

Poland's domestic market is one of the largest in Europe, as the country is home to almost 40 million people. In terms of population, this state ranks sixth in the EU and first in Eastern Europe.

Poland is a member of the European Union and has a favorable geographical location. As a result, investors have the opportunity to supply goods and services to the market of a united Europe, which includes 500 million potential consumers. Poland's main European trading partners include Germany, France, Italy, the Czech Republic, Spain, Ukraine, and the UK.

Ease of doing business

Behind last years Poland has significantly improved its position in the Doing Business ranking. If in 2008 the country occupied 72nd place in it, now it is 24th among 190 countries of the world.

The Polish government and parliament regularly adopt programs aimed at revitalizing the business environment. As an example, we can name the Constitution for business, which has become a consolidated normative legal act regulating economic activities. The document is intended to significantly facilitate the work of companies, including through the elimination or reduction of legal barriers, to protect against changes in the interpretation of legislation and excessive control by government agencies, limit the obligations of employers to employees, simplify the calculation of taxes and social contributions.

In addition, the Polish legislator is developing the rules of the game for a fundamentally new organizational and legal form of a legal entity, thanks to which it will be able to attract financing using modern tools, including crowdfunding.

Qualified and competitive workforce

According to the Organization for Economic Co-operation and Development (OECD), there are more than 430 higher education institutions in Poland, where about 1.4 million students study, including over 60 thousand foreigners from about 150 countries.

Almost 30% of residents aged 25-64 have higher education. According to the Program for International Student Assessment (PISA), Poland ranks 22nd among 72 countries in the global classification for the level of students and one of the highest positions in the EU.

Qualified Polish specialists (economists, programmers, engineers) and scientists are actively hired by European IT companies, research centers and scientific and technical institutes. Investment companies, especially those specializing in high-tech investments, are also major employers.

Subsidies from European Union funds

From 2014 to 2020, Poland will receive a total of more than 120 billion euros in EU subsidies from Brussels: over 82 billion euros will be transferred under the so-called cohesion policy, and another 32 billion will come through agricultural policy. In 2007-2013, the country has already received more than 100 billion euros from the EU, including 68 billion as part of the cohesion policy.

The funds are intended for areas that make the greatest contribution to economic development, employment growth and economic modernization, and will, among other things, be invested in Scientific research, construction of roads and railways, public transport, energy, business support, development of broadband Internet infrastructure and professional retraining of the unemployed. Foreign investors will also be able to use these funds to do business in Poland.

Well developed infrastructure

Among the significant advantages of Poland are its constantly developing infrastructure: roads and railways, air and sea transport, a wide network of cargo warehouses and terminals. Several busy international transport routes with a total length of 5 thousand km pass through Poland (Berlin - Lviv, Berlin - Moscow, Bialystok - Prague, Gdansk - Cieszyn, Gdansk - Lviv).

It is planned that by 2020, 21 transfer and transshipment nodes will be located on the Polish section of the Trans-European Transport Network TEN-T. In 2014-2020, total spending on road infrastructure will exceed 140 billion zlotys (about $40 billion). By 2023, 1,800 km of national roads and expressways will be built.

From 2016 to 2023, it is planned to increase to 31 million zlotys (of which 22 million are EU funds) costs for the development and modernization of railway transport infrastructure. From 2014 to 2020, the total investment in maritime transport should exceed 6.5 billion zlotys, and the turnover of goods flow in Polish ports should exceed 80 million tons per year.

There are 15 airports in Poland. About 35 million passengers use them annually, and this figure is constantly growing. It is expected that until 2019 the Polish air transport sector will grow by an average of 3.7% per year.

The country ranks eighth in Europe in terms of total warehouse area. Moreover, in Poland prices for warehousing services are lower than in most EU member states.

Special economic zones

Poland offers foreign investors a number of advantages, including the opportunity to implement projects in special economic zones (SEZs). There are currently 14 such zones in the country: Kamennaya, Katowice, Kostrzynski-Slubicka, Krakow, Legnicka, Lodz, Mielecka, Pomerania, Słupskaya, Starochowice, Suwalska, Tarnobrzeg, Walbrzych and Warmia-Masuria.

FEZ investors can use state support in the form of exemption from income tax, deduction from the income tax base of investment expenses and expenses associated with the creation of new jobs. Enterprises of some SEZs are exempt from real estate taxes.

FEZ residents can also count on other preferences, such as rent or purchase at a competitive price land plot fully prepared to carry out entrepreneurial activities. The arsenal of support includes free assistance in completing the procedures necessary to start a business, covering the costs of training interns, providing additional funding when creating new jobs.

According to economists, every second an average of 215 zlotys, or about $60, are invested in Polish SEZs. Among the leading investors of the FEZ are the following companies: General Motors, Volkswagen, Toyota, Opel, Michelin, Shell, UBS, Ericsson, Fujitsu, Indesit, IBM, IKEA, Electrolux, Gillette, LG.

The European Union will soon have to negotiate with the UK on the procedure for the country, which is one of the main donors to the EU economy, to leave the union. Brexit will affect not only the lives of the British themselves, but also the situation in the European Union, which is already not in the best shape.

Izvestia looked into how the EU subsidy scheme is currently structured, which countries are the largest donors and which are the main recipients of subsidies, and whether “dependent” countries really do not contribute to the overall EU economy.

Brexit and centralization

In November 2016, while the British government and the High Court of London were discussing the legitimacy of the Brexit procedure in the Supreme Court of London, in Italy, at a referendum on constitutional reform, residents indirectly spoke in favor of the country leaving the union; previously, a possible exit from the union was also announced in Greece. Recently, French politicians have also been increasingly talking about the possibility of leaving the EU, or at least the euro zone.

Against this background, in February 2017, the European Parliament prepared a package of reforms aimed at stabilizing the economic situation and restoring citizens’ trust in the EU format itself. It is expected that the new measures will contribute to the centralization of the association. They include the implementation of a common economic policy for all participating countries, the introduction of the post of Minister of Finance and the exclusion of the possibility of blocking important legislative initiatives when discussed in the European Parliament. In addition, it is possible that by 2020 the European Union will completely abandon the cohesion policy, which involves subsidizing countries with weaker economies.

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What is cohesion

One of the main principles of the functioning of the European Union was the cohesion policy, which implies that the richest EU countries financially support countries with weaker economies. The redistribution of funds occurs through the EU treasury, to which each country contributes funds depending on the volume of GDP. Later, these funds, in particular, go to finance targeted EU programs (and often the effect of these programs extends to a lesser extent specifically to donor countries) and to support participants with smaller GDP volumes. Thus, the strong help the weak.

One of the main principles of the European Union is the principle of solidarity, the mechanism of which works smoothly. This principle provides for a greater contribution from those countries that have higher GDP, competitiveness, and labor productivity. Among them are Germany, France and other leading countries. The recipients of their subsidies are those countries in which the economy is weaker, primarily the former socialist countries, including the Baltic states, Vladislav Belov, deputy director of the Institute of Europe of the Russian Academy of Sciences, explained to Izvestia.



"Donors" and "dependents"

The distribution of “donors” and recipients of subsidies has remained relatively stable over many years and can be fairly easily divided according to regional and chronological criteria. The economies of the countries of Northern and Western Europe are among the most developed; they are also the oldest members of the association. Countries in Southern and Eastern Europe receive the most subsidies, while most Eastern European countries are new members of the EU (this includes, for example, Poland and the Baltic countries, which account for most of allocated financial support).

Thus, according to the research institute Stratfor from October 2016, in 2015, the number of “donors”, that is, countries that contributed more money to the EU treasury than they received, included 10 of the 28 EU countries. The main “donors” remained Germany (17 billion euros per year), Great Britain (13.9 billion euros per year) and France (6.1 billion euros per year). The list of “donors”, but with a noticeable gap from the leaders, also included Italy, Sweden, Denmark, Austria, Finland and Cyprus.

The most a big difference between contributions and funds received (in favor of the latter) was Poland (received 9 billion euros more than it contributed to the treasury), the Czech Republic (5 billion euros), Romania (5 billion euros) and Greece (4.8 billion Euro).

However, if we recalculate contributions per capita of the country’s population, it turns out that residents of the Netherlands (331 euros per person), Sweden (262 euros per person) and Great Britain, who intend to leave, contributed the most “out of pocket” to the EU treasury in 2015. association (215 euros per person). Germany is in fourth place on this list - each of its residents “paid” 211 euros to the EU treasury. In turn, the residents of Luxembourg (the difference was 2 thousand euros), Slovakia (560 euros) and the Czech Republic (523 euros) “received” the most money from the EU treasury (compared to the contributions made).


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What is the problem

The EU budget is approved for a period of seven years (the last one was agreed in 2014 and will be valid until 2020), and each time the approval procedure is accompanied by disputes about the method of distribution of funds. However, the two crises that rocked the euro area in 2008-2009 and 2014, as well as the difficult situation in Greece and a number of economies in southern countries EU, led to escalating mutual accusations. First of all, from the residents of the countries of “New Europe” and citizens of “donor” countries.

The latter accused the new members of the association of actually living off subsidies allocated by countries with more developed economies - that is, at the expense of the citizens of these countries. In addition, discontent was caused by the flow of cheap labor pouring from Eastern European countries. The result of such sentiments in the UK, in particular, was Brexit.

However, it turned out that the so-called “dependent” countries also had something to answer to the economic leaders. Thus, residents of Greece accused the European Union that the economic policy of the union led to the collapse of the country’s economy, and the refusal to reduce the debt did not allow the situation to stabilize. On the other hand, it was the subsidy policy of the European Union that led to the fact that in the countries of Eastern Europe, which only a few decades ago emerged from the influence of the socialist zone, sufficient foundations were not laid for independent economic development.

In addition, an important factor contributing, among other things, to the development of the economies of “Old Europe” is access to the markets of other countries on “preferential” terms of the European Economic Area. It is the potential losses from sharply increasing customs duties when trading with other EU member countries that have become one of the main counter-arguments from opponents of Brexit in the UK.

There are also benefits from so-called “dependent” countries. This is a single market, freedom of movement of goods, capital and labor. All countries are interested in this. For example, Germany, which is the largest taxpayer, was one of the initiators for the expansion of the EU. Berlin understood that the inclusion of new countries in the union is an advantage for the German economy and companies that are actively developing the markets of other countries, noted Vladislav Belov.

Experts from the Rubaltic portal spoke about the fact that the Baltic states are needed by the EU primarily as a sales market and a source of relatively inexpensive labor back in 2013, the year of the tenth anniversary of Latvia’s accession to the European Union.

Thus, a system of interdependence is emerging in the European Union, where there is a balance of interests and there are no losers,” summed up Vladislav Belov.

If the EC's decision is approved, Poland may be deprived of its voting rights in the European Council. The Polish Foreign Ministry has already sharply criticized this decision. Gazeta.Ru found out why it deliberately comes into conflict with Brussels.

But first, the EU member states must consider the European Commission’s recommendation to apply Article 7 of the Lisbon Agreement. To launch the sanctions mechanism, the votes of at least 22 of the 27 EU member states are required.

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It all depends on whether so many EU members will support the activation of the article - according to Sergei Utkin, head of the strategic assessment sector at IMEMO RAS, this may not happen. “It is likely that, despite a certain concern with which a number of EU countries are observing the transformations of Polish politics, a formal condemnation of Poland with the subsequent application of sanctions against it simply will not gain the required number of votes,” the expert believes.

Polish political scientist Jakub Koreyba, in a conversation with Gazeta.Ru, emphasized that the prime minister had already publicly promised Kaczynski (the head of the ruling Law and Justice party - PiS) that he would veto the entry into force of Article 7: “So this is a PR campaign, - the political scientist is sure, - the Commission is trying to create a precedent and take over more powers, and they are traditionally testing the limits of their informal influence.”

Associate Professor of the Department of Political History at MGIMO Kirill Koktysh admits that the EU will still apply sanctions against Warsaw, but emphasizes that this will not cause significant damage to the interests of Poland. “The Council of Europe is not a body that makes decisions, it is a platform for discussions - deprivation of the right to vote in the Council of Europe will not cause any particular damage to Poland, and besides this, nothing threatens Poland yet,” he recalled.

In a sense, these sanctions are even beneficial for Warsaw, since they justify its right not to pay European obligations and not to follow orders from Brussels that are inconvenient for it, Koktysh believes.

“The use of sanctions will be politically offensive, but ineffective. For Brussels, this is a situation where the carrots are over and the stick is missing,” the expert concluded.

Why should Warsaw quarrel with Brussels?

Warsaw is escalating the situation because it understands that this will add popularity to the authorities, says Jakub Koreyba. “Instead of a city on a hill, the EU has become a black man: in the eyes of the Polish people it has become a source of threats, not hopes, and the government positions itself as a protector ordinary people from a transnational oligarchy,” the expert emphasizes.

“Law and Justice” relies on a Eurosceptic voter who generally supports the government’s intention not to follow Brussels’ lead. That is, from the point of view of the voter, the country’s sovereignty is strengthened, and from the point of view of the ruling group, its own positions are strengthened.

Warsaw’s desire to “quarrel” with Brussels may also be due to the fact that starting next year the European Union will significantly reduce subsidies for all countries of Eastern Europe, including Poland.

The country will find itself in a situation where privileges end, but responsibilities remain. “Therefore, Poland quite consciously went into confrontation with Brussels,” says Kirill Koktysh from MGIMO.

In light of Warsaw’s disagreements with the EU, the question of the prospects for the development of Poland’s relations with the EU is especially interesting. Director of the Institute for Strategic Assessments Sergei Oznobishchev believes that the processes observed in Poland give hope for improving their relations with Russia against the backdrop of disappointment in the “purely Western” path. “One can hope that Russia will take advantage of this to improve relations with Warsaw - something similar has already happened with Hungary and, apparently, now Poland is next,” the expert said in an interview with Gazeta.Ru.

However, Kirill Koktysh warns that the process of rapprochement between Poland and Russia will not be quick. “A rapprochement with Russia for Poland will be speculative in order to scare people with it,” he explained.