Transformative changes are sweeping across Poland's legal and political landscape after the 2023 parliamentary elections, according to KWKR Partner Lukasz Wieczorek, while the jury is still out on the new government's efforts to address longstanding issues in sectors like green energy, technology, and the burgeoning field of ESG initiatives.
"The late 2023 parliamentary elections marked a significant turning point for Poland, leading to the establishment of a new government that has been auditing and addressing political matters left by its predecessors," Wieczorek begins. "This transition has been positively received by the EU, given the disputes over democracy and the judicial system in Poland in recent years. The new legislative actions aimed at resolving these issues have led to the EU's positive stance towards granting Poland funds from the national recovery and resilience plan, a move that promises a substantial economic inflow and legal work, especially in the green energy and technology sectors," he explains.
The implementation of a national e-invoicing system has been delayed until 2025, Wieczorek reports. "This has been a relief for Polish businesses struggling to adapt to the new IT requirements. This move is significant, as it allows more time for companies to prepare for a more transparent invoicing system that aims to streamline operations with the government's IT systems," he says. "It's a complex transition, but the postponement is a welcome reprieve that has a direct impact on the legal advisory and tax planning services provided by lawyers."
Wieczorek then highlights that ESG is becoming a focal point for both businesses and lawyers in Poland, "though it's still in its infancy. The challenge now is to translate global ESG trends into actionable strategies for Polish companies, big and small." He stresses that "it's an exciting time as we navigate these new waters, with the potential for significant legal and business transformations on the horizon."
Perhaps surprisingly, the M&A market in Poland remained robust despite geopolitical tensions: "It's interesting to note the resilience of the M&A sector in Poland, particularly in the TMT space. Despite the challenges posed by the geopolitical landscape, Poland's strong IT sector and growing sophistication in deep technology and IP rights are attracting foreign investments and fostering a vibrant environment for M&A activity," Wieczorek stresses, adding that this dynamic is creating numerous opportunities for legal professionals in the country.
Additionally, the upcoming EU regulations on AI and cybersecurity are poised to buffet the market, Wieczorek notes. "The forthcoming DORA regulation and NIS2 directive highlight the increasing importance of cybersecurity at the EU level, a response to the threats posed by the situation to the east of Poland," he says. These regulations will significantly impact how businesses operate, particularly in terms of preparing for and mitigating cybersecurity risks. "The AI Act represents a major shift for IT businesses, requiring thorough preparation and guidance from legal professionals to navigate these new regulations effectively."
Finally, Wieczorek says that the future of law firms in Poland will likely be shaped by legal tech, "with AI tools and solutions offering promising enhancements to the efficiency and effectiveness of legal services. While larger firms, especially those with international ties, are leading the charge in adopting these technologies, there's vast potential across the board," he says. "The legal profession in Poland is on the cusp of a tech-driven transformation, with legal tech poised to become an indispensable tool in the years ahead."
