From energy transition to capital markets, Minister of State Assets Wojciech Balczun is responsible for companies central to Poland’s strategic agenda. Here, he explains how state enterprises are engines of investment.

Q: What are the main duties of the ministry?

We have a very specific structure of responsibility in our government, because the Ministry of State Assets is responsible for government supervision and controls the main strategic state-owned enterprises, like energy companies such as PGE and Tauron, and the biggest banks controlled by the government, like PKO BP and Pekao. The biggest insurance company in this region, PZU, is also controlled by us. PGZ, in the defence sector, is also controlled by us.

Q: How do you manage such different companies across the portfolio?

Every company is a separate story and requires a different leadership profile. In heavy industry, we need sector specialists capable of executing deep restructuring. In financial services, we need internationally experienced managers who understand capital markets and can plan complex transactions, including mergers and acquisitions.

If you look at our portfolio, you are looking at the largest and most strategic companies in the Polish economy – entities in energy, oil, financial services and defence. They are, in effect, the engines of the economy as a whole. Our objective is to make those engines as efficient as possible, to sustain GDP growth and to position Poland as one of the leading economies not only in Europe, but globally.

Poland is now the sixth-largest economy in the European Union and a formal member of the G20. There are countries that still think of Poland as it was 20 or 30 years ago. The reality is that we have achieved spectacular results, and we intend to build on them.

Q: What explains the portfolio’s market performance?

I think that the State Treasury portfolio plays a key role in ensuring strategic independence and resilience. The whole market believes that our strategy is professional and is not deeply politically connected. The trust is higher in the boards, management and managers whom we appointed two years ago. And the financial results of all these companies are increasing very quickly.

Q: How do state firms support national development?

We are talking about the biggest companies in Poland, the biggest state-owned enterprises, and they have a very serious influence on the whole economy. We are talking about absolutely crucial investments in the energy sector, financial sector and defence sector.

We are going to spend more than 800 billion złoty over 10 years for the transformation of mining, renewable energy, nuclear power and modernisation of power plants. This is an absolutely huge booster for the whole economy.

Because of that, we are thinking about local content as our strategic priority. And our local content means that we want to have the companies, especially medium-sized and small-sized companies, in these processes as real beneficiaries of the investments.

Q: What does success mean for state enterprises?

It is a combination of things. Financial performance matters enormously. Dividends from our portfolio flow into a dedicated ministerial fund and provide direct support to the national budget. Profitability is not optional.

At the same time, each company must have a clear long-term strategy that goes beyond quarterly results. We hold supervisory boards accountable through explicit KPIs that reflect both financial and broader strategic objectives. Social responsibility is also part of the framework – the stability of employment, the quality of working conditions and the communities in which these companies operate.

Q: How are you approaching the energy transition?

Energy transition is absolutely central to Poland’s security and long-term competitiveness. Each energy company under our oversight is planning investments of around 100 billion złoty over the coming years. This is not incremental improvement; it is structural transformation.

The financial backbone to support this exists. We have strong balance sheets across our energy holdings, and we are able to structure and confirm financing for these investments. The strategy is clear and the government is committed to it.

Q: Why does coking coal remain strategic?

Coking coal is a strategic commodity. It is essential to the European steel industry, and the war in Ukraine has made clear that Europe cannot afford to rely on single sources of supply for critical inputs.

JSW, the coking-coal producer, is an important part of the European industrial security chain. My focus is on creating the right environment for its restructuring to succeed.

Q: What is the ambition for PGZ and the defence sector?

The ambition is significant. PGZ, as the main holding, has the potential to become one of the leading players in international defence markets. We have excellent products – armoured systems that have demonstrated their effectiveness under real combat conditions in Ukraine. The price point is competitive. The operational effectiveness has been proven.

Q: How are international partnerships changing?

This is continuous, active work. At any given moment, we have negotiations underway with partners across Europe, Asia and beyond. Right now, for instance, we are in sensitive discussions with South Korean partners on a transaction that is critical for one of our major holdings. These are the kinds of deal-level engagements that define whether a country is seen as a serious partner in global markets.

Poland’s standing has changed. We are the sixth-largest economy in the EU. Our Warsaw Stock Exchange index has reached 47,000 points – growth that compares favourably with some of the largest exchanges in the world. Investors are noticing.

Q: How has your background shaped your leadership?

Music has been a central part of my life. I have recorded five albums, made videos, toured internationally and performed as a support act alongside bands including Red Hot Chili Peppers, Metallica and Guns N’ Roses. Those experiences taught me a great deal about creativity, performance under pressure and the discipline required to do something well in front of a large audience.

I believe creative intelligence and business leadership reinforce each other. Music trains the brain to be more flexible, more creative and more efficient.