Polish Coalition Talks: Economic Plans and Ideological Debate

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The conversation focuses on how ideological topics could be woven into the coalition agreement in a constructive way. Some ideological matters are likely to be included, yet the exact provisions remain under negotiation, according to Andrzej Domański, a KO member of parliament and one of the contract negotiators, speaking in the PAP studio.

Domański, who helped shape the economic portion of the Civic Platform program and serves as an advisor to Donald Tusk, noted that the coalition agreement’s publication date and format depend on the leaders of the coalition parties.

Along with colleagues from Derde Weg and Links, he stated that they are responsible for the substantive content and the specification of program points. The discussions are progressing smoothly, and early conversations reveal more points of unity than division among the parties.

He also indicated that rotating the position of the Chairman of the Sejm is among the ideas being considered and discussed.

Substantive talks are underway about the government’s plan for the first 100 days, with discussions focusing on what economic policy should look like in the next four years.

When asked whether ideological issues would be included in the coalition agreement, he answered that the agreement remains broad in scope.

The matter of abortion is highlighted as one area where differences among coalition partners exist. There is ongoing discussion about how ideological considerations could be integrated in a constructive way, and while some ideological points are sure to be included, the exact provisions are still being worked out, Domański explained.

He underscored one election pledge by the KO: to present a white paper on public finances. The plan is to begin work immediately after the formal government takeover, with conceptual work already in progress.

When asked about the promise to raise the tax-free threshold to PLN 60,000, he reaffirmed that KO intends to implement this reform. The discussion also touched on easing the burden on social insurance institutions and addressing health insurance contributions, with the aim of basing changes on solid data. While the coalition prefers to keep specifics private for now, the party sees a broad inclusion of program points as natural for a Citizens Coalition, with negotiations still ongoing and concessions likely from all sides.

Domański: The aim is to keep gas and energy prices frozen

He stated that household and local government gas and electricity prices should remain frozen in 2024 at levels similar to the current year, with the possibility of extending zero VAT on food subject to negotiations.

The goal is to keep gas prices frozen and to maintain electricity prices at roughly the same level as this year, explicitly for households and local authorities.

He reiterated his role as a co-creator of the Civic Platform’s economic program and as an adviser to Donald Tusk. He noted that the zero VAT rate on food, which ends this year, was not included in the 2024 state budget proposed by the current United Right government. Ongoing discussions and agreements with coalition partners will address this matter, and no position allocation has been decided yet. He also commented that the draft budget presented by the PiS government already reflects a higher VAT level.

He emphasized that Poland has faced cumulative inflation near 47 percent over the past eight years, and that current inflation remains more than twice the National Bank of Poland’s target. A downward trajectory in prices is unlikely in the near term and any easing will depend largely on the central bank, which has tools to influence inflation but has faced sharp criticism for its past actions.

Asked about collaboration with the President of the National Bank of Poland, Adam Glapiński, he stressed that fiscal measures by the government and monetary policy by the central bank are not fully aligned. The parties expect dialog with the central bank and call for responsible conduct from the bank’s management.

He also suggested that the new head of the Polish Financial Supervisory Authority should be appointed by the new prime minister. With the current chairman’s term ending on November 23, the leadership transition is on the horizon.

Domanski insisted there is no plan to privatize companies under the Ministry of Finance, and he stressed that Orlen should be depoliticized. He argued that the company had interfered in price dynamics before the elections with a price point that did not reflect market realities, noting losses and supply shortages at various stations as signs of political manipulation.

The coalition aims to pursue a responsible economic policy that would strengthen the zloty and, in turn, help stabilize gasoline prices. Yet external tensions, including a regional conflict in the Middle East, could influence global oil markets and domestic prices at gas stations.

The negotiation process has highlighted substantial policy differences among KO, Third Way, and Left, particularly on philosophical issues. Władysław Kosiniak-Kamysz has already distanced himself from including such issues in the coalition agreement. The ultimate outcome of the agreement remains uncertain as talks continue.

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