During the Polish-Lithuanian inter-governmental negotiations held on Thursday in Vilnius, the Prime Ministers of both countries - Mateusz Morawiecki and Saulius Skvernelis signed a declaration on strategic partnership and regarding Belarus. Both countries wish to promote dialogue and cooperation in the area of security, business, economy, national minorities, culture, education and youth exchange.

Deputy Prime Minister Jadwiga Emilewicz stressed the importance of improving the energy security of both countries.

Reconstruction of the railway between Mažeikiai and Renge was an important step for the improvement of energy security in Baltic States and to improve the economic viability of the Orlen Lietuva investment. We appreciate that symbol of a strong Polish-Lithuanian cooperation

– she stated during the discussion with the Lithuanian Minister of Development and Innovation.

The Minister of Economic Development stressed:

Poland is undergoing changes with regards to the regulations regarding onshore wind energy. They will give the local authorities the possibility to enable the construction of wind turbines if they are permitted by land management plan.

The Deputy Prime Minister said:

We happily accept the Lithuanian initiative of establishing a transnational, European digital innovation hub Smart Energy Baltic. We have particularly strong interest in facilitating and supporting initiatives regarding digital transformation of the energy system, providing increased energy efficiency, promoting the development of renewable energy and reducing emissions.

Minister of Economic Development also stressed the new socio-economic reality:

Today we know very well that economic growth cannot be measured solely by GDP, but that it must also be sustainable. It means reconciling economic, social and environmental objectives. Ensuring a safe future and sustainable development for future generations requires maintaining balance between these three components. The European Green Deal also follows this line of thought and becomes a new growth strategy - said the Minister.

The inter-governmental consultations were also an opportunity for the President of PKP Cargo Czesław Warsewicz and the President of LTG Cargo Egidijus Lazauskas to sign a joint venture agreement and for servicing intermodal trains of both companies. In addition, a letter of intent was signed between UAB LTG Link and PKP Intercity S.A. for commencing a railway connection between Vilnius-Kaunas-Białystok-Warsaw.

Trade exchange between Poland and Lithuania

The Polish-Lithuanian trade in 2019 amounted to EUR 5.5 billion (an increase by 6.5% in relation to the preceding year). Poland is the sixth largest investor in Lithuania. Our direct investments in this country have amounted to EUR 968 million and they make up approximately 4.5% of Polish capital invested abroad.

Lithuanian investments in Poland have reached EUR 386 million. Out of them, the last key investment includes the acquisition of the Stokrotka supermarket chain by Maxima Groupe.

Polish-Lithuanian cooperation in the energy sector

Lotos Geonafta - Polish company active in Lithuania expresses interest in utilising the hydrocarbon deposits on the Lithuanian shelf.

In turn - Lithuanian energy companies - Ignitis, Sun Investment Group and the national corporation Lietuvos Energija are considering making investments in renewable energy sources in Poland.

The matters related to financing the construction of cogeneration power plants in Vilnius by Budimex and Rafako were also discussed during the meeting.

The situation in Belarus and its impact on the Polish and Lithuanian economy

Worsening of the economic situation in Belarus may have further economic consequences for the neighbouring EU countries. Any potential restrictions in the flow of goods and limits on the import of goods from Poland and Lithuania would have negative consequences for the situation of entrepreneurs in our countries.

Poland intends to make investments in Technology Parks and Special Economic Zones in the near future in order to establish dedicated cooperation offers for IT specialists and Belarusian entrepreneurs.

The Polish Agency for Enterprise Development (PAED) plans to initiate the second edition of the Poland Prize programme. It is an acceleration programme for micro and small entrepreneurs where we intend to invite Belarusian companies.

Perspectives for the Polish economy during the COVID-19 pandemic

Polish economy proved to be more resilient to the global recession caused by the coronavirus pandemic than previously estimated. The initial, conservative estimates showed a GDP decrease by 4.6%, however the most recent data by the Ministry of Finance shows that it will amount to approximately 3%. Such positive forecasts are mainly due to strong export, consumption and the planned public investments.

During the initial months of the pandemic, the crisis influenced mainly the tertiary sectors, based on national and international flow of persons. That relates mainly to tourism, gastronomy, retail and transport.

Polish-Lithuanian cooperation in tourism

Poland is interested in intensifying the cooperation with Lithuania with regards to tourism, both in bilateral as well as the multilateral dimension. We offer cultural, medical, active, specialised, as well as business tourism. Poland ensures the highest safety standards for passengers. They apply in hotels, restaurants and amusement parks.