Spain is presently 12th in terms of Polish exports and 12th in Polish imports. Poland’s trade with Spain in 2008 approached EUR 6 bln. The 2005-2007 balance of trade was positive for Poland and only underwent change in 2008 when the economic crisis made itself felt in Spain, when consumer demand was restricted and supplies for the automobile and metal industries in Spain slumped.

But automobile industry products, components and car engines continued to dominate Poland’s exports to Spain as well as electronics and animal-origin products. Major imported items are vehicles, airplanes, parts and components, machines and mechanical devices, electric equipment, vegetable-origin products, base metals and chemical industry products.

Principal exporters to Spain are international consortiums with Poland-based production plants to mention but Philips Consumer Electronics, Isuzu Motors Polska, Ficosa, Fiat Auto Poland, Stomil Olsztyn (Michelin) and Thomson Multimedia.

Among CEE countries Poland is one of the most important recipients of Spanish FDIs. The steadily mounting interest in the Polish market has been additionally enhanced by Poland and Ukraine being entrusted with the right to stage the Euro 2012 football championship. Spanish investors are displaying no small interest in participating in the construction and extension of infrastructure.

According to National Bank of Poland data, the value of Spanish investments at the end of 2007 amounted to EUR 3.5 bln, ranking Spain 11th among countries which have expressed greatest interest in Poland’s construction projects (Grupa Ferrovial, Acciona, Fadesa, Realia and Grupo Sando) and energy sectors (particularly renewable energy – mainly Endesa Polska, Iberdrola, Gamesa, Grupo Sniace) attract the greatest interest of Spanish investors. Many investments have also been made in the banking, insurance and foodstuff sectors. Spanish companies also play a large part in the real estate developer market, particularly in Warsaw and also are present in many tenders in road construction, building infrastructure facilities and those related to the organisation of the Euro 2012 European football championships.

Spanish companies are said to have invested more than EUR 1.4 bln between 2000 and 2008, which reaches as much as EUR 4 bln when real estate investments are taken into account (e.g. purchases of investment sites).

Polish FDIs in Spain are still insignificant, amounting to less than EUR 60 mln between 2000 and 2008. Polish business activity is evident, first and foremost, in the construction, property, training and transport services sectors and also in agency operations and commercial consultancy.

Many Polish provinces have opened cooperation with Spanish regions in recent years, pursued on various planes, from official contacts between local governments, up to and including economic, cultural and scientific ventures.

The elimination on 1 May 2006 of restrictions in the flow of Polish workers to Spain means that no significant barriers exist as regards access to the Spanish labour market. The number of Poles residing in Spain has been steadily rising since 2004 when the Polish-Spanish intergovernmental agreement on the principles and conditions for mutual flow of labour became valid, and particularly since 2006 when Poles could legally undertake employment in Spain. The number of Polish citizens in Spain increased by 85 pct since 2006 till the end of 2008.).

As a country which in 2007-2013 will receive almost 20 pct of all EU funds for cohesion policy, Poland is an important partner for Spain and particularly for its economic units for cooperation when implementing a series of projects, not only those connected with the transport, hotel and housing infrastructure but also concerning renewable energy and scientific and research projects. On Poland’s part, Spain’s experience in making practical use of EU funds is useful, including the possibilities which Spanish investors have acquired, especially their experience in implementing large infrastructure projects in industries which are fundamental for Poland, appropriate management personnel and an imperative production machine stock.

Trade and Investment Promotion Section
Embassy of the Republic of Poland in Madrid

Economic Office of the Polish Embassy in Madrid
Madrid, May 2009