Blurred vision
Leszek Miller displayed his true colors last week when he childishly whined on local radio about foreign banks' "anti-Polish behavior." Pardon us here at the Business Journal, but who do banks work for, their shareholders or the prime minister of Poland?
How Miller could demonstrate such a lack of understanding of economics is nothing short of astounding, even given the man's communist underpinnings. It was bad enough that his revenue-starved government thought it wise this month to squeeze $1 billion from the hard-earned savings of Poles by rushing through a 20% tax on income earned from deposit accounts. But then to shake his finger at foreign-owned banks for introducing long-term accounts to sidestep the tax - a tax that threatens to eat into their profits?
That lack of foresight - that Poles would do whatever it takes to protect their modest earnings and that banks would respond to meet the demands of the market - is staggering.
On the other hand, assuming Miller was only pulling the public's leg and realized that Poles and banks would naturally look out for themselves rather than roll over before another state levy, he could have at least wiped the egg off his face before publicly expressing his anger over the botched plan. It would have been less embarrassing to himself and his government now that the $1 billion in revenue they had been counting on may wind up being a watered-down trickle of income at best.
The truth is, Miller wants credit for trying to come up with a 2002 budget after inheriting a shambolic set of books from the previous government. With next year's budget gap of zł. 40 million ($9.75 billion) expected to hit 5% of gross domestic product (GDP) and with Poland's economy teetering on the brink of recession, he does have his hands full trying to scare up revenue. Of course, he could cut more deeply from Poland's generous social outlays but that wouldn't bode well for his re-election chances.
It isn't the banks or foreigners or even the combination of the two - the foreign banker - who are to blame for the mismanagement that has led to the present mess. It's the government, as always. No doubt Miller knows this on one level as did his predecessors, Solidarity Election Action (AWS), whom he blames at every turn for the austere financial measures he is now being forced to impose.
Despite what he's up against, Miller's performance last week was woeful if not telling: the former communist turned free-marketeer sounds dangerously like an unreconstructed communist. What next, stifling dissent and accusing critics of being involved in anti-Polish activities? Clearly much of what Miller learned as a communist party apparatchik still blurs his vision as a statesman.
