Poland and Hungary, facing pressure from nationalist rivals, are imposing curbs on foreign labor. The move is expected to impact businesses and economic growth in both countries.

Background

Polish Prime Minister Donald Tusk and Hungarian Prime Minister Peter Magyar have been accused of being soft on immigration. In response, Tusk’s government has slashed work permits for non-EU citizens by 22%, while Magyar’s government has stopped issuing worker visas to employees from certain countries.

Economists warn that these restrictions may hurt the countries’ growth prospects. Marcin Tomaszewski, lead economist for the EU region at the European Bank for Reconstruction and Development, noted that Poland and Hungary face steeper challenges than Western Europe due to their aging populations.

Impact on Businesses

Businesses in both countries are expressing concerns about the new restrictions. In Hungary, a poultry producer has threatened to halt a factory expansion due to the lack of available labor. In Poland, businesses are complaining about long processing times for work permits and residence permits.

Rahul Jha, a restaurant owner in Poland, lost a chef who got tired of waiting for a temporary residence permit and moved to Denmark instead. "Denmark gave him a five-year visa… like immediately, a skilled visa. So he just moved out from here," Jha said.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.