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  Gustav
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Wednesday, September 28, 2005

A fiscally responsible Poland?

Reuters:
Poland's conservative candidate for prime minister Kazimierz Marcinkiewcz said on Wednesday he wanted a quick compromise with a pro-business ally over tax reform which would rejuvenate the country's economy.

The conservative Law and Justice and ally Civic Platform crushed the ruling left in Sunday' general election and are set to launch coalition talks later on Wednesday.

"We all agree that labour costs must be lowered and taxes are a part of this," Marcinkiewicz told public radio.

"That is why I personally will oversee talks on economic issues, here we have the biggest controversies and must quickly make joint decisions and come to a compromise."

The two centre-right parties have pledged to cut taxes and curb unemployment -- at 18 percent the highest in the European Union -- but deciding on a joint economic programme will be tough, economists say.

The conservatives see a bigger role for the state in the economy that the Platform and have vowed to strengthen the EU newcomer's welfare protection.

They have ruled out adopting the Platform's 15 percent flat tax scheme, which they attacked in the campaign as a "liberal experiment" that would benefit the rich. Instead, they want tax breaks for families and companies creating new jobs.

Marcinkiewicz reiterated he would seek to change the 2006 budget draft left by the outgoing cabinet, saying the changes would probably be presented to parliament late in November or early December.

He confirmed he that he planned to lower the 2006 budget deficit by 2.5 billion zlotys ($774 million) to 30 billion -- or slightly above 3 percent of gross domestic product.

According to daily Rzeczpospolita, the conservatives aim to bring down the deficit mainly through cuts in administration costs and elimination of several state agencies.

Law and Justice is also considering limiting the responsibilities of the finance minister by bringing some budget issues directly under control of the prime minister.

"We want to agree with Law and Justice what remains in the finance minister's hands and what is given to the premier," senior Civic Platform official Zbigniew Chlebowski told Reuters.

"Once this is known and the programme is set, then we can calmly decide...if there is any point in having the finance minister from another party than the prime minister," he added.

9 Comments:



Blogger Gustav said...

Radio Polonia's speculations about where PiS will cut (as opposed to "mainly through cuts in administration costs and elimination of several state agencies") is scary, but possible:

Experts fear that the budget deficit envisaged for 2006 may be exceeded due to higher expenditures on family bonuses postulated by the conservative Law and Justice which won the general election. Earlier today the outgoing government set the 2006 budget deficit at 8 billion euro. There are fears too that the new government will try to reduce spending on infrastructure and science at the expense of its own planned reforms . According to the budget, which will be sent to the lower house on Friday, GDP should grow by 4.3%, while unemployment is hoped to drop to 16.9% from 17.8 at present.

Poland should not sacrifice greater innovation or better infrastructure in order to maintain the welfare state.

9/28/2005 04:55:00 PM  


Blogger Rythin said...

If they want to save all that money by cutting administration costs and eliminating several state agencies -- God bless them. Especially, if one of those 'several state agencies' will be KRRiT :)

http://dhost.info/arsud/wordpress/?p=10 ;)

9/28/2005 06:13:00 PM  


Blogger Gustav said...

You hit the nail on the head with the KRRiT.

There's a Finance Ministry and a Treasury Ministry. In the States (for example) their jobs are handled by one department.

Then there's the Health Ministry, which works in conjunction with, but does not control, the Health Fund, which holds the purse strings and can effectively hamstring the Health Ministry by denying it money.

What a mess.

But money for infrastructure, as well as investment in innovation, is vital for Poland. PiS must keep its hands out of that jar.

9/28/2005 10:12:00 PM  


Blogger Rythin said...

So true.

Nevertheless, KRRiT is a one to be out as well. There are many departmens which could take over it's responsibilities.

For those of you who mastered Polish language, I suggest reading http://www.likwidacja.rox.pl/

9/28/2005 11:17:00 PM  


Blogger Rythin said...

Have no idea whether you gonna check my blog anymore, so I thought I will drop you a note. Replied at dhost.info/arsud/wordpress/?p=73

Uh, I need domain. And I need it now :)

9/28/2005 11:32:00 PM  


Blogger Gustav said...

I'll keep checking your blog - I'm always interested to see if somebody responded to my comments, and you're always on my goodside as long as you've got a link to me on your page!

Is that a wordpress thing? They don't give you one or something?

Kinkypron.com sounds good. Or maybe rythin.com?

Where do those names come from anyways?

9/28/2005 11:37:00 PM  


Blogger Rythin said...

Yes, it is wordpress. I have worked with many content managers and it's best by far (and definately better than blogger). It is highly customizeable and has tons of interesting features, like categories or plugin support.

Kinky pr0n, well... Every blog has a name, like 'All About Latvia', or 'Warsaw Station'. I needed one as well. And I found 'Kinky pr0n' rather amusing :)

9/29/2005 07:26:00 AM  


Blogger Gustav said...

I've seen blogs with categories - seems like I would just waste more time categorizing things on my blog. I can usually find what I need by surfing my archives.

Anyways, wordpress can't be that good if it won't give you a proper url!

I really like typepress blogs. The comment feature right at the bottom of each post - rather than the click, wait, and then comment method - is especially conducive to comments.

Kinky PrOn is amusing (is that a capital "O" or a zero?

Where does rythin come from?

9/29/2005 03:44:00 PM  


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