News

The draft of the national budget for 2012 is economically correct and possible to execute provided that some optimistic assumptions are fulfilled. However, it does not include implementation of some essential structural changes and international financial markets may recognize it not to be too ambitious when they take into consideration the scale of savings - thinks PKPP Lewiatan.

The government proceeds with the one thousand small steps tactics it initiated in 2010 with most of the steps being actions which have been proposed and supported by Polish economists and business circles for some time now. They include: adopting the expenditure rule (unfortunately limited to few categories of expenditures, including pro-growth ones), freezing tax thresholds, abolishing some tax reliefs. Actions undertaken to raise taxes (mainly VAT), which are reluctantly accepted by the society and treated as the "necessary evil" by business circles, are aimed at the same goal. What does not match with this philosophy is the increase in the minimum wage (by as much as 8.2%) proposed by the government which would bring about increase in costs connected a number of social security benefits and increased costs of conducting own business activity.
Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan)