During yesterday’s commemoration of the fall of the Berlin Wall as well as the fall communism throughout the Eastern bloc, Poland’s role and impact was prominently displayed.

The last two decades have resulted in sweeping political and economic transformations, culminating in NATO and EU membership. However, once the euphoria and self-congratulatory back-patting subside, what will be the next chapter in Poland’s modern history? How will Poland’s geopolitical role evolve over the coming decades? What are the key challenges facing Poland, both domestically and within a maturing European Union?

According to many leading experts, Poland is in its best geopolitical position in 300 or even 400 years, but simply does not know how to take advantage of it. Three key issues will test Poland in the near-term: energy security, economic sustainability and relations with its eastern neighbors. How it chooses to address these challenges will determine whether Poland lives up to its potential as an emerging mid-size European power or instead follows the path of some older and stagnant EU members.

Regarding energy security, Poland needs to maintain diversity of energy options, both in its sources and suppliers. It also needs to ensure that its energy sector maintains fair competition as well as free and open markets. By encouraging the EU to develop a southern energy corridor (beyond Nabucco), Poland and the rest of Central Europe will be able to simultaneously address fallout from the global economic crisis and impeding climate change.

Economically, Poland’s greatest hindrance is its low labor participation, due to high levels of early retirement. This will not only threaten future competitiveness, but will create enormous strains on the social welfare system. Poland needs to build off of the legacy of Solidarity and the success of previous market reforms by reinvesting in building a viable civil society and strong social (entrepreneurial) capital. This will not only deepen economic convergence within the EU, but create a set of best practices for other aspiring EU accession countries.

Finally, Poland’s relations with its eastern frontier (Belarus, Georgia, Ukraine, etc.) will play an increasingly critical role in Europe’s future common foreign and security policy. While the Eastern Partnership (EP), is neither a substitute for nor a guarantee of EU membership, the EU, and especially Poland, should play a bigger role in encouraging EP countries to speed up the pace of reform and meet EU laws and standards. By acting as a bridge between the Western EU members and the EP, Poland can not only share its own accession best practices, but enable EP countries to fortify their domestic security through greater political and economic cooperation with Europe.