Staszic Institute recommends accepting next New Deal
15:00
The Polish independent think-tank Staszic Institute in its latest position recommends adopting solutions comparable with the New Deal by Franklin Delano Roosevelt in order to stimulate demand and counteract the increase in unemployment and the decline in investment opportunities of private enterprises.
The twenties, as in the previous century, will be associated with the epidemic and economic crisis, which is why we should reach for solutions that have already worked in history. One of the elements of Roosevelt's policy were large-scale infrastructure investments - in this case Poland's backwardness in this field can be an advantage.
An important issue during large-scale state investments is their proper financing, e.g. through the National Toll Collection System (KSPO). The system has not been expanded for over three years despite the growing road network that can be covered by tolls, which has significantly reduced your revenues. It seems that the act subordinating the KSPO to the National Treasury Administration, currently proceeding in the parliament, results from the understanding of the government, how important the source of infrastructure financing is the existing System and how it should be effectively developed. The state neglected to lose capital, which should be collected mainly from transit drivers - Poland's favorable location and system possibilities were not fully utilized.
The Staszic Institute indicates that we cannot count on EU funds as the main driver of infrastructure development. Better economic indicators and the state budget than other EU countries may lead to a decrease in EU funds directed to Poland. The details of EU plans to overcome the crisis are also unknown. That is why the Staszic Institute recommends internal financing of New Deal. In addition to the above mentioned KSPO, the government should use the banking system and, in order not to wait for financing private initiatives, offer the exchange of deposits for treasury bonds. Another element is the reconstruction of the pension system and allowing funds for more diverse and effective investments under PPK.
