The PM's vision of Poland
The Prime Minister painted a glorious picture of Poland as an investment destination during a meeting with EU entrepreneurs last week. He called it a "dream location" and projected GDP growth in 2007 and 2008 of 5.5 percent, while in 2009 it will grow at six percent, with inflation staying below 2.5 percent.
He pointed out that in May the rate of unemployment was 16.5 percent, down 0.7 percent since April. "The decrease in unemployment recorded in May 2006 has been the most significant in the course of three years," he said, while also underling that inflation is below one percent.
Talking about the government's plans, Marcinkiewicz said that the introduction of two tax rates, 18 and 32 percent, in 2009, rising tax thresholds in 2007 and 2008, and a reduction in social-security premiums will cut labor costs in the next three years. The PM argues that the larger number of people employed on the basis of task contracts rather than permanent contracts is resulting in a relatively low inflow of premiums to the social funds' accounts. "This is why in the tax projects there is an attempt to seal the system through a reduction of some allowances connected with deducting the costs of labor. Sealing the system is the basis for making public finances efficient."
Among the most burning issues for entrepreneurs are infrastructure, energy security, Sunday trading, Poland's joining the eurozone, and EU funds absorption. Marcinkiewicz said that in the next seven years Poland will spend zł.100 billion on the construction of 1,700km of motorways and 1,700km of express roads. By the end of this year zł.9 billion will be spent to add 200km of roads to the infrastructure.
As to energy, the PM said that the government is now creating several energy groups, the largest of which will be Polish Energy Holding. "We want to use the opportunities of close cooperation with one of our bigger neighbors. We are running negotiations and by the end of this year we will take decisions on this issue," he said.
As to the euro, Marcinkiewicz said that a final decision will be taken in 2009, when Poland will fulfill all the Maastricht treaty conditions: "There are examples of European countries in which joining the eurozone was badly prepared and caused unnecessary economic losses. Rich countries can afford such losses, Poland cannot."
