One hundred days of solitude

Reviewing the first 100 days of Prime Minister Kazimierz Marcinkiewicz's government, the president of the Polish Confederation of Private Employers (PKPP) Lewiatan, Henryka Bochniarz, says the government's 'honeymoon' period was a wasted opportunity: "The government didn't use this time to introduce bold, but needed reforms, although it could have done it, because the first months are like a honeymoon and it wouldn't affect its popularity."

Reform is needed if Poland wants to catch up, not only with the Western EU members, but also the rapidly developing new European neighbors. "Lithuanian GDP grew by 7.6 percent in 2005 and unemployment is seven percent. This shows that the distance between us and the leaders of the new members of the EU is growing," she said.

PKPP blamed the government's policy of increased spending for the poor performance. According to its estimates the 'baby bonus' could cost the economy up to zł.500 million annually, without any guarantee of achieving its goal. "A systematic approach is needed to deal with demographic and family issues," says Małgorzata Krzysztoszek, director of PKPP's expert department.

The budget didn't get many positive comments either. "The expected increase in income is unfounded," Krzysztoszek says, adding that expenditure was maintained at the same high level. Government subsidies for fuel for farmers also earned PKPP's ire, and this particular outgoing could cost the taxpayer zł.450 million annually.

PKPP also criticized the government for its failure to improve relations with Russia. Despite the assurances that it wants to improve relations, the embargo on Polish food products is still intact and the threat of decreased gas supplies from Russia and Russian pressure on increasing gas prices haven't gone away. "This may lead to higher costs in Polish companies and therefore reduce their competitiveness," Krzysztoszek said.

The government received credit for simplifying the procedures for applying for structural funds, improving the movement of information in this field and easing the implementation of these funds. Nevertheless, according to the confederation, this remains the only field of the economy where the government is behaving rationally. PKPP says the government's current policy is "an economic own goal."

"The first 100 days did not help stabilize the economy ... This government is not one that helps make entrepreneurial activity more predictable," Bochniarz added.