Construction: The end of the Polish exception

The construction sector was boosted from 2004 by investments in infrastructure and housing partially financed by European Union funds and public spending.

Poland's economic catch-up with its European neighbors then ran into the economic downturn, a drying up of loans and a fiscal deficit that forced a change of economic policy.

The contraction in international demand, budgetary restrictions and the shrinking of European Union funds caused the financial situation of construction companies to deteriorate, resulting in a surge in insolvencies.