Speaking on Wednesday at the Open Eyes Economy Summit, an international economic conference in Kraków, southern Poland, Domański said recent data showed that the Polish economy "is doing very well" and that he was "optimistic about 2026."
He pointed to third-quarter gross domestic product growth of 3.7 percent and said European Commission forecasts suggested that Poland would be the bloc's fastest-growing economy this year and next.
Domański argued that Poland’s strength lies in a "diversified economic structure."
He said the country had “many engines of growth” rather than a single dominant sector, which he described as an advantage in a time of global uncertainty.
Poland is already counted among the five or six largest economies in the European Union, depending on the method used to measure economic output, state news agency PAP reported.
The minister said that, in his view, the war in Ukraine had had a “relatively limited” impact on Poland’s economy. He attributed this to long-running efforts to cut dependence on Russian gas and oil, which he said had reduced the risk from energy shocks.
He added that Poland could become a “major beneficiary” once a “just peace” is achieved in Ukraine, arguing that reconstruction and investment in the region would create new opportunities for Polish companies.
Domański also addressed what he called a “trade war,” a reference to rising tariffs and trade tensions worldwide.
He said customs duties harm the global economy and “above all” damage the economy that imposes them.
He warned that a loss of trust caused by tariff battles would take decades to repair.
“Our European response should not be based on retaliation,” he said. Instead, he argued that the European Union should concentrate on building its own engines of growth, including by investing in infrastructure, innovation and capital markets.
Energy prices are one of the main concerns, according to Domański. He noted that energy costs in Europe are several times higher than in the United States, which he said hurts the competitiveness of European industry.
He added that Poland was “very active” in trying to bring energy prices down, including by investing in cheaper sources of power and upgrading the electricity grid, with the aim of helping Polish firms compete more effectively.
The minister also criticised what he sees as excessive regulation in the EU. He described the United States as the technological leader and China as the industrial leader, and said the EU had become “the regulatory leader.”
In his view, this balance needs to change, with European policymakers putting greater emphasis on economic growth, innovation and investment.
Domański welcomed the European Commission’s Omnibus simplification package, a proposed bundle of deregulatory measures aimed at cutting red tape for businesses, but called it insufficient.
He said Europe needed a “whole flotilla” of similar deregulatory packages. He added that Poland’s own deregulatory agenda, developed in consultation with the business community, was increasingly cited in Brussels as a model for cooperation between the public and private sectors.
Turning to financial markets, Domański said there were no signs of panic. He argued that yields on Polish government bonds had been falling, which usually indicates investor confidence, while stock market indices in Warsaw had risen by almost 40 percent since the start of the year.
He added that major Western European markets were also performing well and that key currencies remained relatively stable.
The minister also said that Poland was the EU leader in defence spending, allocating about PLN 200 billion (EUR 47.3 billion, USD 54.4 billion) to defence in the national budget.
He argued that such large investments in the defence industry could serve as an additional driver of economic growth, provided that a growing share of this money flows to Polish and European defence companies.
"Ukraine has shown that building the entire industrial base behind a military effort is just as important as the number of tanks a country has,” he said.
He added that Poland “cannot change geography” and that the threat from Russia would remain even after peace is reached, which is why, in his view, the country needs a strong and diversified defence industry.
Looking ahead, Domański said the government’s priorities include higher investment, a rapid increase in spending on the energy transition, and a stronger capital market.
He argued that these elements will be essential if Poland is to maintain its position among the EU’s leading economies and continue to grow faster than most of its European partners.
(rt/gs)
Source: PAP, IAR