• Finance minister presents ideas to offset global crisis impact
  • Audio3.73 MB
  • 19.02.2009

Following yesterday's decision of the government to exchange a large sum of euros from EU funds, the Polish currency, which had been falling dangerously, went up a little bit. The stock market reacted positively and the major index has risen. Today at the parliament, Polish finance minister Jacek Rostowski said that at some point the government may decide to repeat the operation.

Poland must not allow to increase its budget deficit, added finance minister Jacek Rostowski. The limit for this year is 18 billion 200 million zloty. Poland's strength in the times of the crisis is a healthy banking system. It is high public debt that is the major problem. According to the finance minister, Poland should enter the euro zone as soon as possible. But above all, fear should not influence any decisions at this difficult time, the minister emphasized. Janusz Grobicki, finance expert at the Adam Smith Research Center agrees that panic is not a good way to approach the issue.

In a debate following the minister's speech, major opposition Law and Justice party MP Aleksandra Natalii-Świat accused the government of delaying necessary actions to offset the crisis. MP Natalii-Świat criticized the government's idea of quick introduction of euro in Poland. The reasons behind this idea are political, not economic she said. Euro zone has not saved German or French economies. According to major opposition Law and Justice party, the government should increase public funds for investments and increase the deficit limit by 7 billion zloty.

Minor opposition Polish Left club leader Wojciech Olejniczak said that the government should rise taxes to 40% for the most wealthy, as well as increase export to China, Russia and Belarus. Olejniczak also joined the critique of the government for delaying actions to offset the crisis.

Click on the audio icon to listen to the report by Joanna Najfeld.