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Home >> Business
UPDATED: 10:21, February 16, 2007
Polish PM announces economic priorities
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Polish Prime Minister Jaroslaw Kaczynski said on Thursday that sustained economic growth, state sector reform and more efficient spending of EU funds are the nation's three main economic policy priorities.

Kaczynski told reporters at a press conference that bills on reforming the public finance sector would be presented in March.

This will be "a great reform" resulting in a "much wider scope of public spending than is the case now," he said.

He hoped that opposition parties would support the bills when they reach parliament.

The tax wedge will be further reduced this year, said Kaczynski. "This will be dealt with starting in July but the scope of the reduction is not yet determined," he said, quoted by the Polish news agency PAP.

According to earlier reports, the government also plans to cut the old-age pension contribution from 13 percent to 10 percent of a worker's gross wage. Eventually, the contribution will fall to 7 percent.

The government plans to "slowly, quietly and without provoking social unrest reduce the share of public spending in the GDP," Kaczynski said. The initial move will come in the 2008 budget, he said.

Moreover, the government will try to remove existing obstacles to economic activity. A package of decisions is almost ready and will be presented to the public soon, Kaczynski said.

Source: Xinhua


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