Biznes Fakty
Marek Belka comments on the economic proposals of the new president Karol Nawrocki: it is an attempt at sabotage
„We must not be evasive; it is essential to assert that this represents an effort to undermine not just the political landscape but also the Polish economy,” stated Professor Marek Belka, the former Prime Minister and previous head of the National Bank of Poland, during the program „One on One,” commenting on Karol Nawrocki’s announcements. As reported by „Rzeczpospolita” on Friday, these announcements are projected to incur costs of up to PLN 125 billion.
In a discussion on TVN24, Marek Belka condemned the new president’s economic populism, indicating that the strategy of „moving forward,” which involves competing with PiS and Konfederacja on populist pledges, is not effective.
– This approach won’t persuade anyone, and you’ve already alienated part of the electorate in these parliamentary elections – he remarked.
Nawrocki’s economic proposals directed at the government
Instead, Marek Belka advocates for decisive measures and transparent communication – Whatever actions we can take, we do them – but more swiftly and with greater determination, which will be highly appreciated by segments of the electorate – he added.
Professor Belka expressed his expectation that Donald Tusk’s administration will dismiss populist proposals akin to those of Karol Nawrocki, which, according to „Rzeczpospolita,” could cost as much as 125 billion złoty each year. „We must be straightforward, not overanalyze, but firmly declare that this is an attempt to disrupt and undermine not only the political environment but also the Polish economy,” he asserted.
READ ALSO: Nawrocki’s pledges, not 21, but 71. And the deadlines have already been postponed.
„We offer something, but at the expense of others”
In response to the opposition’s claims that Tusk „is unwilling to provide” families with relief such as zero VAT or an increased tax-free threshold, Belka observed that Poles have become desensitized to such messages.
„I believe a significant portion of the population in Poland has grown immune to arguments that suggest there is no lack of funds. After all, that’s inflation. We need to clarify the implications of inflation. The consequences of inflation are exceedingly high interest rates, which hinder young individuals from obtaining mortgages and new homes. This needs to be communicated clearly. We’re giving something, but at someone else’s expense,” he emphasized.
Inflation in Poland is easing
Belka expressed a favorable view of the NBP interest rate reductions, highlighting that „inflation is clearly diminishing.”
He believes it is vital to be truthful about the condition of the state’s finances. „There is no alternative,” he remarked, cautioning against the potential for an economic crisis. „The public debt snowball has already begun,” he remarked.
He pointed out that the cost of servicing public debt in Poland is exceedingly high, partly due to the existence of its own currency. „Instead of 2 percent interest rates, we face rates nearing 6 percent. Thus, the expense of managing this debt today is comparable to having a public debt of 150 percent of GDP, rather than 60 percent,” he evaluated.
When asked if Poland could manage tax cuts, he affirmed that it is currently unfeasible. „Absolutely not. We also can’t afford to increase expenditures. Therefore, if anyone discusses tax reductions today, they are simply undermining it. The existing economic climate does not permit such actions,” he clarified.
Risky cadastral tax
Belka approached the issue of the cadastral tax with caution, stressing that it is a precarious decision. „An apartment generates income when it’s either rented, which is taxable, or sold, which also incurs tax. However, the real question arises as to whether this is the best way to invest our money in Poland,” he noted.
„I only recognize that attempting to address this is extremely risky, both politically and substantively. It could lead to significant problems. However, I’m neither against nor in favor. I think this is a very challenging matter,” he added.
Criticism of the euro is „harmful and inappropriate”
In response to a question about a tax on excessive bank profits, Belka indicated that such a tax is already in place, albeit „poorly designed”.
Belka also denounced Karol Nawrocki’s remarks regarding the euro, labeling them as „harmful and inappropriate.” „I find this to be detrimental and unsuitable for the president. It is not his place to comment on this issue,” he concluded.
What is the cost of Nawrocki’s proposals?
The overall costs associated with implementing the new president’s proposals could range from PLN 54 billion to as high
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