MINISTRY OF REGIONAL DEVELOPMENT P O L A N D

1. MINISTRY OF REGIONAL DEVELOPMENTP O L A N D Poland prospects for development – contribution of structural funds Jerzy KwiecińskiUndersecretary of State Warsaw, May 29, 2007

2. Poland – assets and weaknesses Labor market Innovativeness Economy needs both: growth in B&R expednitures and strengthening of cooperation between science and industry Unemployment rate is systematically falling.In February it stood at 14.4%.

3. Poland – assets and weaknesses Environment and natural resources Economic development

4. Poland – assets and weaknesses Human capital and entreprenurship Investment attractiveness According to the A.T. Kearney Agency Poland ranks among of the 5 best world investment locations Almost half of the population is below 35 years old

5. POLAND IN THE EUROPEAN UNION Poland – 7.8% of the EU – 27 population; sixth country in terms of population

6. Rate of GDP growth in the selectedEU countries in the period 2003-2006 Source: Eurostat. Database – General Economic Background/Real GDP growth rate

7. Gross Domestic Product1989=100

8. Regional Development and Raising of Territorial Cohesion GDPPer capita in Voivodships (at purchasing power parity) 2004 EU-27 = 100 Poland on average 50.7 Source: Eurostat. 2007

9. LONG - TERM EFFECTS OF EU MEMBERSHIP FOR POLAND Improved positionof Polandon the global scene (political and financial credibility) Accelerationand strengthening of the reform process Influence of the Single European Market on the economy (GDP growth, productivity) Impact of the EU funds Improved national security and higher level and quality of life

10. IMMEDIATE EFFECTS OF EU MEMBERSHIP FOR POLAND Growth in exports of foodstuffs and agricultural products Reduction of duties on 35% of the volume of imports Changes in the level of prices (in both directions) Improved consumer protection standards Widening of educational opportunities Poland’s eastern border became the EU external frontier Gradual opening of the EU labor market Participation in the EU decision-making process

11. Strategic Programming System in Poland International treaties and agreements. other financial and legal instruments National DevelopmentStrategy Voivodship’sdevelopment strategies sectoral strategies NSRF (executive plan) Local development strategies Other financial & legal instruments National Operational Programmes and RegionalOperational Programmes RegionalOperational Programmes Operational Programmes Executiveplans Executive plans Executiveplans

12. Poland as the beneficiary of the EU Cohesion Policy For the 2004-2006 financial perspective Poland is receiving within the framework of structural assistance 12. 8 billions Euro (6% of the total EU assistance in that period). In the period 2007-2013 Poland will have at its disposal 67.3 billion Euro for the cohesion policy, that is almost 1/5 of the total EU cohesion policy financing. Financing of other fields will exceed 18 billion Euro. Co-financing is estimated at over 22 billion Euro. Altogether, the above-mentioned funds will reach about 108 billion Euro.

13. Country’s Development Directions 2007 - 2015 National Development Strategy 2007-2015 (NDS) - principal strategic document which delineates objectives and priorities of the development policy in the period 2007-2015 Main goal of the NDS Raise the level and the quality of life of Poland’s residents: individual citizens and families • Priorities: • 1. Growth of competitiveness and innovativeness of the economy • 2. Improvement of the condition of the technical and social infrastructure • 3. Growth of employment and raising of its quality • 4. Building an integrated social community and its safety • 5. Development of rural areas • 6. Regional development and improvement of the territorial cohesion

14. Distribution of the UE resources among operational programmes NSRF/NCS 2007-2013 (in Euro) NSRF = 67.3 mld EUR, Including national reserve For implementation (2% of the value of allocation)

15. Financing of transport investments EU resources 28.2 billion euro from the EU for expenditures on the transport sector until 2013 Programming instruments • Continuation of expenditures 2004 - 2006 • Cohesion Fund 1.7 billion euro • European Regional Development Fund 1,2 billion euro • New Financial Perspective 2007 - 2013 • OP Infrastructure and Environment 20 billion euro • Regional Operational Programmes 4.2 billion euro • OP Development of Eastern Poland 1.1 billion euro

16. Regional Operational Programmes Priorities

17. Operational Program Development of Eastern Poland Priorities

18. Operational Program Human Capital Priorities 13% of funds for development of human capital

19. OP Human Capital Financial allocation within OP Human Capital

20. Impact of the NSRF on the rate of growth Difference between GDP rates of growth in the NSRF scenario and base scenario (without NSRF) expressed in percentage points

21. Impact of the NSRF on unemployment rate Difference between unemployment rate in the NSRF - based scenario and base scenario (without NSRF) expressed in percentage points

22. Impact of the NSRF on the rate of GPD growth in the period 2006-2020

23. Scenarios of Poland’s attainment of the EU economic development level*)

24. Thank you for attention

25. MINISTRY OF REGIONAL DEVELOPMENTP O L A N D Ministry of Regional Developmentul. Wspólna 2/4www.mrr.gov.plstrategia@mrr.gov.pl