Public finance reform again seen as key aim for Poland

On Wednesday, participants in a conference organized by the Polish Confederation of Private Employees (PKPP) and the Businessman Magazine, said that in order to attract investors and create new jobs, Poland has to reform its public finances and lower taxes. They also believe that many difficult decisions have been avoided and, due to this, Poland has lost out to the Czech Republic, Hungary and Slovakia. "Poland needs to offer foreign investors a transparent and friendly business environment and maintain high GDP growth. However, long-term economic growth will not be sustained without reforming state finances," said Leszek Balcerowicz, chairman of the NBP. He identified Lithuania as an example for Poland; it has cut state expenditure to 31% of GDP, resulting in a 6%-7% GDP growth rate. In the meantime, the share of state expenditure as a proportion of GDP in Poland is about 44.6%. Michał Boni, an expert at the Centre for Social and Economic Research, pointed out that Poland also needed to change its approach to the labor market, by reducing the role of the state in creating new jobs. (Rzeczpospolita, p. B3) M.M.