The European Central Bank counteracts country-specific risk premia in eurozone, that hinders proper allocation of capital and incurs the risk of building up a new credit bubble. Meanwhile the eurozone is already waiting to cover huge write-off losses – said professor Hans Werner Sinn, president of Ifo Institute in Munich. Therefore, in the Polish debate about the entry into the eurozone he suggests – wait and see.
28 May 2014 is a historic date for Polish labour offices and, hopefully, for Polish unemployed too. It is the first time in over 10 years that the government has amended the operational rules for jobcentres. The range of available tools is increasing, however there is still a lot that depends on plain human involvement.
A distinction must be made between the privatization of previously state-owned enterprises and the privatization of the market, for instance, through the creation of new, private, companies. This latter process has been a success with positive consequences for entire economy – says prof. Leszek Balcerowicz, author of the 1989 reforms.
Poland has created the organizations, procedures and processes of a modern state. By doing so it has bound itself permanently to the Western world. No great reforms will be needed in the future, only the ability to manage necessary changes, says former PM Jan Krzysztof Bielecki.
According to the latest NBP inflation report, economic growth will gradually accelerate without the risk of rising prices. This will allow interest rates to remain stable. The Ukrainian crisis will not impact negatively on the Polish economy, but invites thinking about a more solid anchoring in Europe – says Marek Belka, Governor of the Poland's central bank Narodowy Bank Polski.
GDP growth of 3.6 per cent this year and similar results in subsequent years, with low inflation and an improvement in the labor market – this is the scenario predicted in March 2014 by the NBP’s Economic Institute. We are also not in danger of seeing large capital outflows. However, a worsening of the crisis in the East may have repercussions.
The number of children and youth is for the first time the same as the number of pensioners in Poland. Both groups were 7 million strong in December 2013, according the preliminary reports of Poland’s Central Statistics Agency. This was also the first year in which the Polish government withdrew more from the its Demographic Reserve Fund (FRD), created as a reserve in case of problems with future pension payments, than it paid into the fund from gains from privatization. The fund is dwindling.
The European Union’s new member states from Central and Eastern Europe are required to join the eurozone as part of their accession agreements. But deciding when to adopt the euro is a matter of heated debate. It is not just an economic calculation, but a judgment on the outlook of the single currency itself. For many, the benefits of membership have diminished since the financial crisis, and prospective members, especially Poland, can derive maximum advantage from joining only if they are also clear on what economic conditions must first prevail in their own countries.
Roads, railways and drilling for shale gas are almost certain infrastructure investments for the coming years. Although yesterday the government adopted a nuclear power program, large investments in the power industry, in particular in a nuclear power plant, are uncertain.