Balcerowicz on Reforming Public Finances and State Ownership

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The so‑called economic mentor of the liberal opposition—noting recent disillusionment with the Civic Platform’s plan—was Balcerowicz. In an interview published by Rzeczpospolita, he argued that the state should not run the economy.

Reforming the “social” layer

In his view, budget trouble does not stem from financing traditional state duties such as defense, but from the rapid growth of social security expenditures.

Balcerowicz, who has served as deputy prime minister, finance minister, and president of the National Bank of Poland, and who has recently drawn fire from Donald Tusk for proposing what critics call “gifts” to the country, offered a concrete remedy when asked about reforming this social sector. His answer came in the form of raising the retirement age.

He proposed going back to the previous retirement framework. Restoring retirement at 60 for men and 65 for women would, in his calculation, spare the budget several billion each year.

Balcerowicz described the hike in the retirement age as one of the constructive measures undertaken by the Civic Platform, and he noted his satisfaction that the party has not pledged to preserve the reduced retirement age.

State ownership at nearly zero

The discussion then turned to the economic programs of other political figures. When asked whether the plans of Szymon Hołownia and Władysław Kosiniak-Kamysz resonated with him, Balcerowicz said that the Civic Development Foundation was preparing a study of each party’s platform.

He argued that the economic plan should aim to shrink state ownership in the economy to almost zero.

What, he wondered, is the real justification for politicians to own parts of the economy? He posed the question aloud and pressed for a clearer answer.

Responding to journalists from Rzeczpospolita who pointed out that the state manages strategic sectors of the economy, he offered a pointed critique: if “strategic” means essential, many areas were strategic during socialism too. Why should the state control the economy? What is the advantage of Western systems over socialist ones if private property is sidelined?

He concluded that there is no material justification for any portion of the economy to be state-owned. Balcerowicz also called for a strong move toward depoliticizing the economy and suggested supplementing that with a higher retirement age and a removal of broad social divides to stabilize public finances.

Would Balcerowicz favor a return that echoes the 1990s? The discussion lingered on whether the wounds and lessons of that era should guide future reforms, rather than simply revisiting past models.

aja/Rp.pl

Source: wPolityce

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