OECD: Poland needs investment in infrastructure and skills

Polish economic growth remains solid and unemployment is decreasing, but further investments in infrastructure and skills will be essential to sustain a continuing improvement in living standards, environmental quality and well-being, according to the latest OECD Economic Survey of Poland. To help finance the new government’s policy priorities, including a new child benefit scheme, which involves higher spending. the Survey proposes options for wide-ranging tax reform, including the withdrawal of reduced VAT rates and exemptions, increased use of property and green taxes and strengthening tax administration. The ongoing reform that raises the statutory pension age in stages is needed to strengthen employment of seniors and avoid old-age poverty. Envisaged possibilities for early retirement should be equal for men and women and should not involve financial incentives for take-up. Boosting skills will lead to higher productivity and employment growth, according to the Survey. Continuing the expansion of access to early childhood education, strengthening support for weaker students and better integrating workplace training into vocational education will be key. To improve infrastructure investment, Poland should improve integration of environmental and health criteria to the project selection and evaluation process, ensure stable financing for public transport infrastructure investment and maintenance, and improve framework conditions for investment in renewable energy. Providing support to local governments running infrastructure projects and strengthening local governance capacities would improve infrastructure delivery.