From periphery to power hub: How Rzeszów moved to the center of Europe’s eastern shift

“I am convinced that, because of its location, the time of prosperity for eastern Poland is finally approaching. In the past, this geography meant the periphery of the European Union and did little to support economic development. Today, those very same features have acquired great value and can deliver enormous returns. Eastern Poland is moving to the center of an important process that will clearly enhance our attractiveness,” says Konrad Fijołek, mayor of Rzeszów, in an interview with XYZ.

He discusses the challenges and benefits for a city that has become a pivotal hub of cooperation between the Western world and a fighting Ukraine.

Katarzyna Mokrzycka, XYZ: Rzeszów has been named among the cities that could co-host the Olympic Games in Poland. Aren’t you concerned about committing public funds to such a project? Even if the infrastructure were financed today by someone else – for example, the Ministry of Sport – after a few days of competition the city is left with facilities that are costly to maintain.

Konrad Fijołek, Mayor of Rzeszów: Rzeszów is somewhat more astute, because we do not need to spend money specifically for the Olympics. We already have the infrastructure in place, and we are already delivering concrete investments.

We are building one of the most modern athletics stadiums in Poland. The University of Rzeszów has an indoor athletics hall with a full scientific and research support base. We have also recently built a diving pool, which hosted competitions immediately after its opening as part of the European Games held in Kraków. We welcomed 20 European national teams. Once again, we can serve as a competition venue or as a training base for the Polish Olympic team or for other national squads.

From an economic perspective, Rzeszów stands to gain a great deal from such an international event. But all of these facilities are already in use – and will continue to generate returns long after the event has ended.

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Sport means a workforce that stays active longer

Where did this idea of investing so heavily in sport in Rzeszów come from? Podkarpacie is not usually associated with this kind of approach.

It is not really about sport as such. In our philosophy of how the city functions, we treat sport as a gateway to health. That is why we want all the facilities I mentioned to serve residents first and foremost. Quality of life is one of the region’s smart specializations. We take care of air quality, healthy food, cleanliness in the city, and the natural environment. And one of the pillars of a high quality of life is good health.

Sport, movement, and physical activity mean healthier residents—also healthier employees who remain active in the labor market for longer, and, in the future, seniors who will be enjoying the benefits of the silver economy instead of standing in line at doctors’ offices.

If we want to reach that point in 30 or 40 years, we have to act today by supporting physical activity among children and young people and trying to pull them away from their smartphones. That is why we are also investing in sports fields and school-based sports halls.

Do you perhaps have ambitions to build a new Olympic team in Rzeszów?

Indeed, we want to create a regional system for training in athletics – but without excluding ordinary residents. We are building a kind of pyramid. At the base is society at large: people who simply want to move more and live more actively. In the middle are sports clubs – more committed amateur athletes. And at the top are the very best: Olympic gold medalists. But they will not emerge unless each level of the pyramid develops properly. It is only from a large pool of active young people that you can identify and train those with the greatest potential.

So how much have you invested overall in residents’ health and in future Olympic medals by building these facilities?

These are not small sums, it must be said. The stadium alone costs around PLN 200 million (about EUR 47 million). The swimming and diving pool cost PLN 50 million (around EUR 12 million). On top of that, there is a series of football pitches – both artificial and grass – each costing PLN 4–5 million (roughly EUR 0.9–1.2 million). Another major expense is school-based sports halls. We recently opened three such facilities, each costing between PLN 15 million and PLN 20 million (approximately EUR 3.5–4.7 million).

These are not funds coming solely from the city budget. We draw on a range of financing sources: European Union funds, grants from the Ministry of Sport, support from the regional government, and municipal funds, supplemented by loans and bond issues.

A budget deficit worth having

Has Rzeszów taken on long-term debt?

For us, the longer the debt horizon, the better. Over time, the investments will have a chance to pay for themselves. Infrastructure repays itself when it is alive – when residents actually use it. That is how we look at it. Depending on the financing source, we are talking about maturities of 15, 20, even 25 years, which are increasingly being discussed for municipal bond issues.

Does your budget balance?

With difficulty.

For 2026, are you forecasting a deficit or a balanced budget?

A deficit – but the notion of a deficit has two sides. First, there is the balance between current expenditures and current revenues. Here, we will post a modest surplus – around PLN 14 million (about EUR 3.3 million) – for the first time in quite a while, and that is a positive sign. Of course, there will be an overall deficit, but it results from spending on development investments. We are not consuming funds on day-to-day expenses.

I often compare Rzeszów to Gdynia in the 1920s. Today, we are a strategic port, just as Gdynia once was – except that we are a “port” not to seas and oceans, but to Ukraine. That is why our investment needs are greater. It would be excellent if the state could support us in this, because the entire country will benefit from it in the future.

Strategic decisions in Russia’s shadow

What is the most important issue you are currently working on in Rzeszów?

There are two. First and foremost, completing the road network. We are a strategic city and we need specific transport, mobility, and logistics solutions – primarily to build resilience and ensure the security of the city and the region. We are filling in gaps in the infrastructure to safeguard the functioning of the city center and to make it possible to move around the city safely and conveniently. In the event of threats, we also want our strategic infrastructure to be properly protected.

Does the city consult experts – such as the military or the Ministry of National Defense – on these investments?

We discuss and consult various aspects related to national security with the Ministry of Infrastructure and the Ministry of National Defense. For us, the safety of residents is also a key concern, which is why we are investing in civilian protective infrastructure as well. I will likely be the first mayor in Poland to break ground on the construction of a new shelter. We are building it beneath public infrastructure, under a school. The regulation and guidelines on this matter entered into force just a few days ago, and we are already essentially ready to begin construction. We will start later this year.

Life in an emerging metropolis

The second area where we are focusing our investments is filling in the elements needed for a good quality of life in what we describe as an emerging metropolis. We need leisure-time services, and we are steadily expanding that offering. Just a few days ago, together with the regional authorities, we concluded a competition for the architectural design of a new library. In a few weeks, we plan to begin construction of one of the most modern aquaparks in Europe.

We are also investing in civilian protective infrastructure. I will likely be the first mayor in Poland to break ground on the construction of a new shelter.

Is leisure time more important than investment and attracting capital?

On the contrary – we invest in these services precisely with investors in mind. Rzeszów and the Podkarpacie region are a center for the development of Poland’s aviation industry. We attract talent from across the region, from elsewhere in the country, and from abroad. We want these engineers and their families to have access to public services – cultural and recreational – at the highest level. That is always an additional argument for choosing to work here and to pay taxes here.

The mayor of Kraków is focused on building a metro. The mayor of Katowice wants to transform his city from a coal mine into a technology mine. What goal have you set for Rzeszów?

In our case, we do not really need to invent anything new for Rzeszów. We are already a capital of high-technology industries, with aviation at the forefront. This business here is not limited to routine, low-value contracts; it also invests heavily in research.

Technology pulls in all the skilled talent

It is here that research and development centers of the world’s largest aerospace corporations – such as Boeing, Safran, and MTU – are being established. These are no longer assembly plants or parts sales offices, but advanced R&D centers, with engineers working on cutting-edge technologies. Their projects also attract investment from local private companies.

The inflow of highly qualified talent is a permanent process. That is why, as I mentioned earlier, we are investing in projects that ensure a high quality of life. We want newcomers to put down roots here. With foreign specialists in mind, from the next school year we will open a school in Rzeszów offering an international education system.

Rzeszów has a strong technical university, renowned for its aerospace program. Are those graduates still insufficient, or do Western companies simply prefer to bring in their own engineers?

They are genuinely no longer sufficient. Every engineer from the university – I can say this confidently – is immediately absorbed by local industry and technology centers. We have already expanded our electronics technical school to train more students, as a way to increase the pipeline of future talent who can later enroll at the university.

The university itself is also broadening its specializations. It will build a hydrogen research center and is exploring drone technologies.

We are a capital of high-technology industries, with aviation at the forefront. This business here is not limited to routine contracts; it also invests in research. The inflow of highly qualified talent is a continuous process, which is why we are investing in projects that ensure a high quality of life.

A major problem for cities in Poland is the lack of investment land within their boundaries, and cooperation with surrounding municipalities does not always run smoothly. This often limits the potential of larger towns. Is Rzeszów facing the same bottleneck?

It is true that large plots for investment are also running out in Rzeszów, and the construction boom continues – something new seems to appear every other week.

We are in the process of adopting new spatial development plans for the coming years. We will still have around 200 hectares available for new facilities. However, I am aware that we are approaching the natural, physical limit of such land within the city itself. If someone wanted to build a gigafactory today, they would have to invest within the wider metropolitan area, not in the city proper.

A tangible example of successful inter-municipal cooperation: Rzeszów is about to begin construction of a new road. Investors in the neighboring Dworzysko will benefit from it. For instance, Panattoni will soon start building a large industrial hall there. Thanks to the road financed by Rzeszów, the investment will be located in the municipality of Dworzysko, but Rzeszów will benefit as well, because it will create jobs – including for residents of Rzeszów.

“I show investors a portfolio of sites across the region”

Fortunately, I have very good cooperation with the surrounding municipalities. There are still plenty of investment sites in nearby communes - including plots large enough for facilities that require, for example, 400 hectares. When I host investors, I can show them a portfolio of sites across the region. My fellow mayors and commune leaders provide me with this data. I have no problem offering an investor a plot not in Rzeszów itself, but nearby. It benefits both sides.

Rzeszów is about to begin construction of a new major road that will pass through, among other areas, the Dworzysko Investment Zone. We are spending almost PLN 400 million (around EUR 94 million) on it. Investors in Dworzysko will benefit from the road. For instance, Panattoni will soon begin building a large industrial hall there.

Thanks to the road financed by Rzeszów, the investment will be located in the municipality of Dworzysko, but the city will also gain, as it will create jobs for residents of Rzeszów and the wider metropolitan area. This is a tangible example of successful inter-municipal cooperation.

You used the phrase, “something new pops up every other week” – are these mostly industrial and service investments, or residential developments?

Rzeszów has indeed experienced a housing construction boom in recent years. At one point, the number of developers per thousand residents was the highest in Poland. Of course, that market has cooled somewhat nationwide – and here as well. Today, I would say about one-third of new projects are residential, a little more than one-third are production-related facilities, and there are also new office spaces. Three new office buildings are either already under construction or just starting their development.

War – a development stimulus for Rzeszów

Our entire region has become highly attractive today, thanks to the intersection of the A4 motorway (east–west) and the S19 road (north–south), plus the airport. These are two major European transport corridors right on the border with Ukraine.

Rzeszów - a frontline city. During the war in Ukraine, you became a key hub for the transit of people and goods to the East. Mr. Mayor, it is difficult to talk about benefits in the context of a war next door, but we cannot avoid the topic. Jasionka Airport became a major logistical hub for military equipment. Thousands of people involved in aid for Ukraine passed through Rzeszów. Hotels, restaurants, and other services were full. Residents, meanwhile, complained about rising prices and overcrowding. Was this plunge into the eye of the storm a stimulus for Rzeszów or an obstacle that left a mess to clean up?

It is definitely a stimulus. Without a doubt. You described the phenomenon correctly - it is hard to speak directly of “benefits,” but I cannot say there were none, because there were, and there still are. It sounds cruel, I know, but unfortunately, that is human history: wars can have a positive effect on certain aspects of the economy. The city of Rzeszów, located at the border of both the European Union and Poland, suddenly found itself at the center of global events. As a result, it has also become a very international city. On balance, there are far more positives than negatives.

It sounds cruel, I know, but unfortunately, that is human history: wars can have a positive effect on certain aspects of the economy. The city of Rzeszów, located at the border of both the European Union and Poland, suddenly found itself at the center of global events

Of course, some drawbacks include restaurant prices and rising housing and rental costs. These have jumped significantly, it’s true. But it is not only prices that have risen—salaries have increased as well.

The ratio of average purchasing power per resident to the average apartment price places Rzeszów third in Poland. This means residents can afford much more. Wages have risen partly due to inflation, but also because we are a hub for high-tech industry, where employers no longer pay just the national minimum wage.

Yes, the price of a beer or a lunch can match Warsaw levels, but the market is full of people. The city vibrates with life.

Or is it the life of foreigners that makes it vibrant?

Not only that. Even when the number of NATO troops decreased significantly, the market remained full. Our city center is expanding, more streets are filling up with restaurants, and there is something for everyone. The economic impact is far broader than just the presence of newcomers – it is clear that residents themselves have also felt the positive stimulus.

Eastern Poland could revive thanks to Ukraine’s reconstruction

What role do you see for Rzeszów in the process of rebuilding Ukraine?

We want to be a base for Ukraine’s reconstruction and integration, as well as for the economic processes that will take place there. Our strategic location, appropriate infrastructure, and logistical support are all assets we can offer to Polish and foreign investors operating in Ukraine. We are continuously preparing for this.

First, as a logistics hub. We are investing in road infrastructure to prepare new areas, because we already know that large plots will be needed.

Second, as a site for high-tech, strategic elements across various production and supply chains. Some companies will likely choose to locate certain strategic components here and “radiate” them either to Ukraine, to the European Union, or both. This is our advantage.

Is this advantage unique to Rzeszów, or does it extend to eastern Poland in general?

The S19 express road offers major opportunities to all municipalities along the border. Our additional advantage is that a route to the West also runs through our region. But I believe it is not too late for investments that can further enhance the attractiveness of other areas.

I am convinced that, because of its location, the time of prosperity for eastern Poland is finally approaching. In the past, this geography meant the periphery of the European Union, which was not conducive to economic development. Today, those same features have acquired great value and can deliver enormous returns. Eastern Poland is moving to the center of an important process that will clearly enhance our attractiveness. This is our historic and civilizational opportunity.

We still have significant investment needs in expanding infrastructure and preparing logistical support, but each of these investments will pay off. They will open access to entirely new investment areas and stimulate economic growth. The impact will be positive not only for the region but also for the overall economic development of the country.

Key Takeaways

1. Mayor Konrad Fijołek emphasizes that Rzeszów is not building infrastructure specifically for potential Olympic Games. Facilities such as the modern athletics stadium, diving pool, and school sports halls have already been completed or are under construction and primarily serve residents. For the city, sport is a tool to improve public health.
2. Rzeszów benefits significantly from its role as a “port” to Ukraine. The intersection of major transport routes, the airport, and proximity to the border attract high-tech aerospace industry and investors interested in operations in Ukraine. The war in Ukraine has provided an economic stimulus for the city. The mayor envisions Rzeszów as a future logistics and high-tech hub supporting Ukraine’s reconstruction - a potential shared by other regions in eastern Poland.
3. The city is implementing major infrastructure and public projects. These include large-scale road works, a school-based shelter, a new aquapark, and a modern library. Cooperation with surrounding municipalities allows the city to offer investors land across the metropolitan area. Investment spending means the city anticipates a budget deficit, but - as the mayor stresses - these are not funds “spent away” but strategically invested in growth.