Poland and Germany have pledged to deepen trade and investment links and work together to strengthen Europe's industrial competitiveness, at the fourth Polish-German Economic Forum in Warsaw on Monday 26 October.

German Economy Minister Katherina Reiche told the forum that the two countries face shared pressures: on energy costs, economic distress and the continuing fallout from Russia's attacks on Ukraine, and that a joint response was needed to restore growth.

Bilateral trade has grown sharply over recent decades, reaching 180.4 billion euros, up from 25 billion euros in 2000. Investment now flows in both directions: around 1,000 Polish companies have invested in Germany, while about 1,600 German companies have invested in Poland, across sectors including automotive, chemicals, optics and electronics.

Deregulation and lower energy bills

Reiche said the path back to competitiveness runs through more deregulation and a lower overall energy bill, alongside renewed growth in technology sectors such as energy, space and physical artificial intelligence. The message was aimed as much at Brussels as at Warsaw and Berlin: European industry, she argued, cannot compete while carrying higher costs than its rivals.

The forum itself underlines how central the relationship has become. Germany is Poland's largest trading partner, and Poland is a major production base for German firms. Closer coordination on energy, supply chains and industrial policy therefore matters beyond the two capitals.

No single deal was announced from the forum. Its significance lies in the joint framing: two of Europe's largest economies presenting competitiveness, rather than subsidy competition, as the shared priority for the period ahead.

Source: Reuters