In Poland, Law and Justice Comes at a Cost

Since joining the European Union in 2004, Poland has introduced market-friendly reforms and enjoyed notable rates of economic growth. In fact, Poland was the only EU member to avoid recession during the European economic crisis. But recent political developments in the country have Western governments and investors nervous about the future of the largest economy in the former communist bloc. After sweeping parliamentary elections in late 2015, Poland's nationalist Law and Justice party assumed political control in Warsaw. Within its first few months in power, the new administration clashed with EU officials over the rule of law in Poland, introduced new welfare benefits, announced taxes on banks and retailers, and criticized foreign investment. It appears as though Western concerns are well founded....