Growing pressure to strengthen Europe’s technological and digital sovereignty requires appropriate adjustments to national and EU policies. In the report “Reforming the Digital Decade – how to incorporate technological sovereignty into the EU’s key digital strategy?”, the Polish Economic Institute (PIE) presents a set of recommendations aimed at adapting the EU’s digital transformation programme to 2030, “The Path to the Digital Decade”, to evolving challenges in this area. Key priorities include integrating the objectives and indicators of the Digital Decade with the goals of EU industrial policy, focusing on reducing dependencies in critical areas, developing detailed solutions for public services—especially in healthcare—and fostering digital skills that support supplier diversification.

Representatives of business and NGOs note that although the state continues to play an important role in the digitization process, the responsibility for formulating digital policies and designing technologies is increasingly shifting beyond its structures. International technology corporations are not only providers of technology but are also increasingly actively shaping the future directions of state digitization by formulating their own visions of the digital future. Polish non-governmental organizations are likewise actively participating in consultations, producing expert analyses, and influencing digital policies by offering alternative visions of national development — distinct from those of the state and corporations. At the same time, both NGOs and the business sector view the actions of public administration in the field of digitization positively, particularly its openness to dialogue. However, they also point out several serious issues, including a lack of coordination in digital policy-making, low institutional stability, and the absence of a long-term strategy. These are the main conclusions of a report by the Polish Economic Institute titled “Alternative Visions of Poland’s Technological Development”.

State aid for companies in the European Union is granted unevenly, especially in sectors considered key at the EU level, such as the energy transition. France and Germany accounted for 47% of all state aid granted in the EU in 2023, and as much as 52% in 2022. In 2023, there was particularly strong concentration of spending in the category “Environmental protection and energy saving” – it was almost three times higher than in the EU economy as a whole. The new mechanism, the Clean Industrial State Aid Framework (CISAF), adopted by the European Commission on June 25, 2025, does not radically change the rules for granting state aid in the EU, but focuses on the transition toward a low-emission economy. Nevertheless, its introduction may deepen the imbalance in the distribution of state aid in the EU. The solution proposed by Enrico Letta, introducing fees for excessive state aid, would make it possible to finance initiatives important for the single market in regions where less support has been provided. These are the main conclusions of the PIE report “Imbalance of State Aid in the European Union.”

In most Polish families with young children (63%), mothers perform more household duties than fathers. Only 27% of women say that responsibilities are shared equally in their households, while in just one in ten homes, men do the majority of housework. Over three times as many women as men are dissatisfied with the current division of responsibilities (36% vs. 11%). Fathers are more likely than mothers to believe that an unequal division in their favor is justified. While 69% of women want an equal split of duties, only 56% of men share this view. At the same time, satisfaction with the division of household and caregiving responsibilities influences decisions about expanding the family—parents who are very satisfied are 16 percentage points more likely to consider having another child. These are the main findings of the Polish Economic Institute’s report “Division of Household Responsibilities and Its Consequences for Fertility.”

Ukraine’s accession to the European Union could bring economic benefits not only to Ukraine itself but also to the countries of Central Europe (CE). In the most optimistic scenario, accession could lead to a 26% increase in Ukraine’s GDP. Central European countries would also benefit from the EU’s enlargement. Poland – currently Ukraine’s second-largest trading partner after China – could see its GDP increase by approximately 0.17%. The next biggest beneficiaries in the region would be Lithuania and Hungary. EU accession could lead to increased exports from EU countries to Ukraine across all goods and services, particularly in those sectors where trade is currently limited by the DCFTA agreement between the EU and Ukraine. Imports would increase mainly in Ukraine, with minimal expected growth in imports in the rest of the EU. Sectors of Ukraine’s economy that would benefit the most include textiles and apparel, construction, wholesale and retail trade, and sectors currently subject to quotas. These are the findings of the Polish Economic Institute’s report titled “Win-win for Ukraine and Central Europe: The Economic Implications of Ukraine's Accession to the EU”

The tariff policy announced by Donald Trump will impact the Polish economy, although the effects will be moderate. While the United States is only Poland’s 8th largest trading partner, it is the second-largest recipient of Polish value added after Germany—57% of the $23 billion of Polish value added consumed in the U.S. reaches the country indirectly through other nations. Overall, 2.6% of Poland’s GDP is generated thanks to U.S. demand for Polish value added. If the U.S. imposes 25% tariffs on imports from the EU, Poland’s GDP could fall by 0.38–0.43%. These are the findings of a report by the Polish Economic Institute titled “Potential consequences of changes in U.S. trade policy for the Polish economy.”

Countries’ experiences in shaping their development and raising the technological level of their economies are highly unique. Close coordination and collaboration in implementing innovation strategies is of key importance. Increasing investment in R&D is also essential. At the same time, it is difficult to define a single, unequivocal strategy that guarantees success, as there are many diverse development paths. These depend not only on the initial economic situation of a country but also on geopolitical, socioeconomic, and structural factors within society. These are the main conclusions of the PEI report "Development Pathways: How Have Countries Raised the Level of Technological Advancement", which analyzes the development trajectories of selected countries—Germany, South Korea, China, Finland, Malaysia, and Estonia—that have successfully increased their economies’ technological advancement. These countries represent three groups at different stages of development. The report aims to identify key success factors in R&D, support for start-ups and SMEs, human capital development, and the creation of effective innovation ecosystems.

The increasing use of cyber technologies requires simultaneous efforts to strengthen cybersecurity. Both the EU and individual Member States have been increasing investments in this area over the past few years. The current Multiannual Financial Framework (2021–2027) allocates approximately EUR 2,9 billion for cybersecurity from EU funds, marking a nearly 200% increase compared to the previous framework (2014–2020). A comparison between the USA and the EU illustrates the scale of the challenge: not only does the US spend more on cybersecurity (approximately 13 bn USD by civilian agencies, not including military spending), but also North American companies spend more than twice as much on cybersecurity as their European counterparts. Hence it is imperative to reconsider the amount of funds for cybersecurity and its allocation within the European Union, particularly those distributed through EU funding mechanisms. These are the conclusions of the PEI policy paper “Methods of Systemic Funding for Cybersecurity Investments in the EU.”

The European "dark doldrum" (Dunkelflaute) from November 4-14, 2024, when heavy cloud cover and a lack of wind occurred simultaneously, necessitated covering energy system losses using dispatchable sources. This phenomenon, regularly observed in many EU countries, highlights one of the challenges in estimating energy production costs. The world's most widely used metric, LCOE (Levelized Cost of Electricity), only describes the cost of generating electricity from a given source. However, LCOE does not account for all costs associated with integrating a generation unit into the power system to ensure stable electricity supply. In cases of "dark doldrum," which forces renewable energy-based infrastructure to rely on dispatchable sources, relying solely on LCOE significantly underestimates real costs. According to PEI’s analysis, LCOE-based calculations should be supplemented with additional indicators such as VALCOE or LCOLC. This combination would provide a more comprehensive picture of the costs associated with different energy sources in the power system, as detailed in the PEI report "Exceeding LCOE: Calculating Energy Costs in Energy Policy Formation."

Reforming the telecommunications market will be one of the key challenges for the new European Commission. The goal is to strengthen European companies by facilitating the creation of large, pan-European operators, as outlined in EC documents and highlighted in reports by Draghi and Letta. The market value of European companies in this sector dropped by 41% between 2015 and 2023, while the market value of American telecoms grew by 20% and tech companies soared by 357% in the same period. Risks associated with the emergence of a few large operators—particularly in cases of consolidation within domestic markets—include potential price increases and reduced investments in peripheral areas. For telecommunications companies to strengthen their competitive position, they need to shift their business models and expand their scale of operations to go beyond narrowly defined telecom activities and engage in deeper collaboration, including with industry. These findings come from the report by the Polish Economic Institute, "The European Telecommunications Market: Challenges of the Transformation Era."