It will be 25 years on 23 December since the Act on Economic Activity, popularly called Wilczek’s bill, was passed. It introduced into the stubborn reality the rule that what is not prohibited is permitted. State regulation was reduced. This act is commonly considered to be the “Sevres standard” for free-market economic reforms. Is this a deserved opinion?
The reform of the pension system will only decrease the cost of debt servicing and the cost of refunding contributions – a total of PLN 9 billion. The government will not spend any more, as it pursues fiscal consolidation within the excessive deficit procedure - says Dariusz Rosati, Chairman of the Public Finance Committee of the Sejm.
In 2012, the EU decreased its total carbon dioxide emissions by 2.3 per cent. Even though Poland has been given bad press in this matter, it managed to decrease them by 3 per cent. In the U.S., emissions were reduced by 4 per cent, while in China they continue to rise, albeit at a slower pace. The EU has launched a crusade against global warming, but other countries have a more pragmatic approach to the issue, which is why the climate summit in Warsaw may end in failure.
According to data published by Eurostat and the European Commission Poles are raising labour efficiency while the wage share in Poland’s GDP is among the lowest in the EU and continues to deteriorate. Yet, employers are reluctant to increase wages. For workers to feel wage growth similar to their productivity growth, there must be a stable tax system and more investment.
A long standing Fed President, William McChesney Martin, kept saying that the central bank is like a good chaperone at a party: one that cares that the guests always have enough punch in their glasses. When the atmosphere gets too hot, the punch bowl must be taken away. If spirits are low and the guests are floating about sluggishly, punch must be topped up.
Until recently Poland, the Czech Republic and Slovakia were seen as the countries with the best governing standards, the most solid banking systems, the most open to foreign investors and with generally predictable politics. There used to be a pretty easy split between the good and bad halves of central Europe but today it is becoming increasingly difficult to tell them apart.
In his report, World Bank analyst Marcin Piątkowski predicts Poland’s new golden age. Relative to Western European countries, Poland’s GDP is the highest in 500 years. In 10 years, Warsaw is expected to be a better place to live in than London. It will be appreciated by immigrants from the East, whom we should start attracting now.
Adequate input for R&D is indispensable: without investment there is no innovation – says Peter Dröll, Head of Innovation Unit in the European Commission. It is equally important to have a maximum output. It is hard to define what output of innovation policy there should be.