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.
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.
We are adept at assembling and tightening screws, but by doing so, Poland falls into the trap of low technology and medium income. We need to change our approach to the economy, and then consistently implement a new plan - says Professor Jerzy Hausner, the chief author of the report on the competitiveness of the Polish economy.
Today, at a meeting convened by the Polish President, Professor Jerzy Hausner shall present a report entitled “How to make headway in the world league?” According to its authors, the Polish economy is now at a turning point. We can either change the economy and stimulate its highly innovative sectors, or lose the competitive advantage of our low cost labour, and thus sacrifice the country’s economic growth.
In the latest World Bank’s Doing Business 2013 ranking, Poland came 55 among 185 countries ranked. A way behind, but we moved up the fastest among all countries – 7 spots, which was thanks to the work of the Ministry of Justice. In many other areas, we are still a way behind, among the 200ths.
LOT, the Polish national air carrier, wishes to apply for a considerable public aid amounting to PLN 400 million (about EUR 98 million), but needs as much as PLN 1 billion. Meanwhile, the prospect of the company's bankruptcy continues to loom large. What would its consequences be? Probably similar to those triggered by the collapse of the Belgian Sabena and the Hungarian Malev: loss of several thousand jobs, a poorer network of air connections, a drop in airports' revenues, serious problems of companies linked to LOT and possibly even more expensive airline tickets. But this is not the end of the world.
The fast pace of technological change means that we are beginning to conceive of computers as capable of doing almost anything, from answering quiz questions to driving a car. Firms need to adapt their business models in order to fully exploit innovation. A natural question arises: what skill set will be required of the workers of the future?