Marking the first anniversary of his (third) coalition government, Polish Prime Minister Donald Tusk is taking domestic and international credit for restoring and strengthening his country’s ties with the European Union, as well as for securing Poland’s post-pandemic EU recovery funds. Unlocking the recovery funds will greatly benefit Poland’s energy, digital, transport and healthcare sectors and has been met with optimism from the business community. However, their relatively late release and the limited time left for utilizing these funds could lead to uncertainty around their distribution.

More than a year after Poland’s parliamentary elections, in which three electoral coalitions scored a combined victory over the national-conservative Law and Justice party (PiS), the first year of the third Tusk Cabinet has been overshadowed by its efforts to reverse PiS-era policies over alleged democratic backsliding. This continues to create protracted political battles between the government and the opposition, with critics arguing that policy work has taken a back seat. The senior ruling Civic Coalition (KO) is also yet to follow up on most of its pre-election promises. Furthermore, the central part of Tusk’s proposed judicial reform remains blocked by Poland’s PiSallied President Andrzej Duda, along with several other policy initiatives.

At the same time, the Tusk Government has rolled out considerable policy initiatives and secured notable achievements in several business-relevant policy areas, including digital and tech, healthcare, agriculture, finance, energy, infrastructure and national security. These policy stances will provide several opportunities for international investors, especially as Poland continues to focus on utilizing its EU recovery funds.

Heading towards 2025, the government’s attention will increasingly focus on Russia’s war against Ukraine, Donald Trump’s return to the White House, the country’s Presidency in the Council of the EU in the first half of next year and the upcoming presidential elections, expected to be held in mid2025. While the multi-party coalition behind Tusk’s government remains stable, these key developments will have a great impact on the country’s politics, with implications for domestic businesses and international investors.