[mamonster]

>How does Poland manage to be industrially active and growing?

Because in a single market new capacity will grow where costs are cheaper. If (Cost of Good X in PL) + (Transport Cost PL->FR) < ( Cost of Good X in FR) then it is clear where the growth will be.

With France it's pretty clear, in a single market with low cost Eastern Europe it can only be competitive in very high tech industries given how prohibitive its welfare/retirement system is from the business point of view.

[inglor_cz]

"given how prohibitive its welfare/retirement system is from the business point of view."

True, the French government redistributes the most money in the entire OECD (close to 60 per cent of GDP) and this is mostly driven by heavy welfare and old-age rent spending. They are pushing the ceiling to see what is still possible.

One interesting question is: if this French model spreads across the rest of the EU, will the EU as a whole become more or less competitive on the global stage? I would guess "less".

[mamonster]

0 chance it can spread. PAYGO systems in general were set up when expanding demographics were not in question. Nobody is stupid enough now to switch to a system that requires an ever growing labor pool in perpetuity.

The problem is that there is no "democratic" way to get rid of them because in most WEU countries retirees/close to retired already make up enough of the population to block any such measure at the ballot box. See for example France.