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Poland has steadfastly pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Poland's agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled. Reforms in health care, education, the pension system, and state administration have resulted in larger than expected fiscal pressures. Further progress in public finance depends mainly on privatization of Poland's remaining state sector, the reduction of state employment, and an overhaul of the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. The government's determination to enter the EU has shaped most aspects of its economic policy and new legislation; in a nationwide referendum in November 2003, 77% of the voters voted in favor of Poland's EU accession, now scheduled for May 2004. Improving Poland's export competitiveness and containing the internal budget deficit are top priorities. Due to political uncertainty, the zloty has recently depreciated in relation to the euro, while currencies of the other euro-zone aspirants have been appreciating. GDP per capita equals that of the three Baltic states.
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