Finance

Re_Open UK – A new opening for Polish business

Polish businesses are to be helped in their struggle against the negative effects of Brexit with more than 500 million złotys from the EU’s Brexit Adjustment Reserve.

Data from the UK’s Office of National Statistics shows that in the year after Britain had left the single European market, Polish exports of goods to the country fell by 6.6%.

Brexit has slowed and weakened Polish-UK trade relations. Polish SMEs have been adversely affected in many areas of their business. Since Britain's exit from the EU, the British market has lost importance in the context of Polish exports, falling from second place to fourth, behind Germany and now Czechia and France.

Despite the fact that Polish exporters were supported by the government and prepared for the effects of Brexit, some industries (including logistics, food, cosmetics and furniture) reported multi-million losses on trade with the UK.

One of the companies negatively affected by Brexit is the cosmetics company Delia Cosmetics. “The biggest problem for us was to cope with the formalities related to the change of labels on products, registration in relevant databases, incurring the costs of setting up a branch office in the UK, which is a major burden for our business. Permission to trade goods and additional certificates expose our company to costs," said a company representative. [Do we not have a name?]

Also facing the effects of Brexit is Polcar Logistics. “My company struggles every day with the effects of Brexit. Increased transport fees, prolonged customs clearance, and trucks returning empty make me – as a small carrier – lose every day to Brexit,” says Patryk Kędroń, the company owner. The transport sector has been particularly hard hit by Brexit. “Additional fees and formalities and lengthy border stops are reducing demand for cross-border transport. Complicated customs clearance disrupts the fluidity of deliveries and thus companies incur losses,” says Bartłomiej Dobosz, partner at Cordis Logistics Ltd.

The Re_Open UK Programme is a response to the concerns of Polish entrepreneurs who have been directly affected by the UK's exit from the EU. Another call for applications for the Re_Open UK Programme, aimed at companies located all over Poland that have been negatively impacted by Brexit, is now being launched. The Łodz Special Economic Zone is responsible for its implementation. Of the 500 million złotys in the pool, 70% will go to micro-, small- and medium-sized companies. The rest will go to large businesses.

Marek Michalik, president of the Lodz SEZ, points out that the Re_Open UK Programme is an opportunity for firms to reverse the negative effects of Brexit. The programme will help many Polish firms return to the UK market, export more goods or find alternative markets.

“The Re_Open UK programme is a response to the needs signalled by representatives of Polish companies. Thanks to the reserve of more than half a billion złotys, firms will be able to strengthen their presence on foreign markets, invest in promotion at international exhibition events, implement a new strategy or business model offsetting the losses related to Brexit,” says Agnieszka Sygitowicz, the vice-president of Łodz SEZ.

The Re_Open UK programme has nationwide coverage and is aimed at companies registered and operating in the UK that have suffered losses or additional costs due to Brexit. More than €115 million has been allocated to compensate for losses related to the UK's exit from the EU.

Funding received as part of the programme is non-refundable and paid in euros, particularly important with fluctuating exchange rates and for planning investments to open up new markets. Calls for applications are conducted on a competitive basis; applications submitted for funding are assessed by a panel of experts. What distinguishes the programme from other available funds is the co-financing of up to 100% of costs for firms in the SME sector.

Only firms which had been doing business with the UK in 2018 or 2019 can apply for funding if they have experienced a decline in trade with the UK after 2020, or have incurred additional Brexit-related costs.

The programme consists of four project types:

New export destinations

Financing costs related to the participation in international fairs, exhibitions and trade missions such as transport, travel, accommodation, rental, construction and operation of a stand at a fair, per diems and meetings with business partners.

Investment Re_start

Projects aimed at financing investment to support new developments in the firm, with possible expenses such as fixed assets, works and construction materials as well as licences, patents.

Action Adaptation to Change

Adapting businesses to new market conditions resulting from Brexit such as purchase of fixed assets, consultancy services, training for employees

Brexit no-loss

Allows for reimbursement of costs already incurred from 1 January 2020 from the catalogue of expenses above.

The first three types of projects can be combined, giving a broad spectrum of support for businesses – from trade fairs to investments in fixed and intangible assets, as well as the creation of a strategy and a new business model. All activities aim to support businesses in adapting to new market conditions.

In 2022, nearly €62m is to be distributed, of which 70% (around €43m) will go to SMEs. In 2023, the amount of funding for businesses affected by Brexit will be more than €52m.

To ensure that as many businesses as possible can benefit from the programme, an information campaign is being run across the country, including face-to-face meetings and webinars. Thanks to this initiative, anyone interested can get acquainted with the idea behind the programme and its rules, and get answers to key questions.

Programme website: //reopen.biz/
Programme: //reopen.biz/wp-content/uploads/2022/06/Pogram-Re_Open-UK-1.pdf
Łódzka Specjalna Strefa Ekonomiczna S.A. (managing authority of the programme)
Ulica Ks. Biskupa Wincentego Tymienieckiego,
90-349 Łódź

Contact with LSEZ experts:

info@reopen.biz

00 44 42 275 50 89

00 44 887 043 358

00 44 887 043 373

00 44 887 043 370

Back to home page

MiCA - European regulation of cryptoassets

By Maciej Kuranc, associate, Kochański & Partners

The pandemic and the war in Ukraine have had a significant impact on the global economy, demonstrating that the geopolitical situation significantly affects all asset classes, including currencies. Faced with falling exchange rates, many have begun to look for alternative security for their assets with some deciding to place their savings in cryptocurrencies. One example of this is given by the Ukrainian government, which, at the beginning of the armed conflict, placed the equivalent of $100 million in cryptocurrencies, which was used to initially support the armed forces. In crisis situations, it turns out that cryptocurrencies can be much more stable than ‘traditional’ currencies, and shows how relevant cryptocurrencies can be on a global scale.

From manual to automation: the story of one team located across Poland and UK

By Magdalena Korgól and Jacob Kendall, Hargreaves Lansdown

One aspiring product-led software development team located across two European countries, Poland and the UK, supporting complicated business processes and managing large dependencies on legacy architecture… could it be possible that these conditions can be the foundations of a successful story? From challenging beginnings grew full cooperation bound by trust and a single-team mindset. Can the location of individuals becomes irrelevant, while, the purpose to whom they offer value remains paramount? Here’s how a fully manual business process within a financial service – heavily constrained by regulatory compliance – can become an automated and scalable journey, one that can be frequently iterated and improved.

Thirty years auditing in Poland – reform and transformation

By Marzena Richter ACA, Staniszewski & Richter, Polish registered auditor

In the spring of 1990, I read an article in the member’s magazine of the Institute of Chartered Accountants in England & Wales (ICAEW) while working in my training firm’s offices in the Channel Islands. Entitled ‘Poland needs auditors’, it was written by my fellow compatriot and ICAEW member Andrzej Kinast. Little did I realise this article was sowing the seeds of my future career!

The Green Mission of bonds and loans

By Roksana Kałużna-Bałazy, advocate, White & Case

“If you think the economy is more important than the environment, try holding your breath while counting your money.” (Prof. Guy R. McPherson)

For years, we were taught that it is acceptable to sacrifice the environment for the greater good – the economy. That thinking has changed, however. We now know that the environment and the economy are two sides of the same coin. Humans are taking serious action, setting targets and making a number of ambitious commitments. According to the EU Strategy for Financing the Transition to a Sustainable Economy, Europe will need €350 billion in additional investment per year over this decade to meet its 2030 emissions-reduction target in energy systems alone, along with the €130 billion it will need for other environmental goals. The appetite for financing is huge and public funds are insufficient. Creating a green economy requires the alignment of all sources of finance, both public and private. In this regard, bonds and loans are the most renowned tools for transferring capital.