Key Challenges

Although inflation appears to have been controlled, and at least moderate economic growth has resumed, Poland faces important macroeconomic challenges in ensuring fiscal sustainability and aligning fiscal and monetary policy with the requirements for adoption of the euro. Its labour market performance is the worst in the OECD, with both low participation and high unemployment. Aspects of social and labour market policy and a poor business environment, including pervasive public ownership and weak framework conditions for entrepreneurship and innovation, seem to be behind this sub-standard performance. Although the education system has seen important progress over the last 15 years, there remain a number of areas where pursuing further reform in human capital development could contribute to improved labour market outcomes, faster productivity growth and greater equity.