Poland’s deficit depends on early retirement – Morawiecki

Deputy PM Mateusz Morawiecki said Polish deficit will be lower than planned PLN 59.4 billion, however its size will depend on how many people will take advantage of a lower retirement age. In the first four months, the deficit reached 1.5 percent of the yearly plan, compared to 20.5 percent last year. “Such a low deficit is not sustainable in coming months, as there are a number of expenditures in the pipeline,” he said during the Reuters Investment Summit.

“There is one big uncertainty. New pension bill cutting the retirement age comes into life in October and because of that 330,000 people will get the right to retire,” Morawiecki explained that this will affect the deficit greatly. “Every 10 percent will cost the state PLN 1 billion,” he said, adding that he expects that figure to reach 80 percent.

 

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