cms neuf
4 Jan 2019
Life / Poland A, Poland B [75]
That's fine if you are sitting on top of oil like Pemex or Aramco but in Poland there is only one such company - KGHM, who have cut their dividends drastically but increase the salaries to the PiS functionaries on the board.
In other businesses then the Polish consumer does pay if PiS uses these as Bankomats to fund their giveaways - a prime example is the banking tax. It has cut bank profits in half but the banks are now recouping it by passing a lot of extra charges on to customers and especially to small businesses - for example my own bank charges for a modest spare time consulting business are over 500 zloty this month. PZU are increasing premia and the power and oil companies also increasing their charges.
I am not totally against a portion of strategic companies being state owned so long as they don't interfere too much in the mgmt. or the free market.
That's fine if you are sitting on top of oil like Pemex or Aramco but in Poland there is only one such company - KGHM, who have cut their dividends drastically but increase the salaries to the PiS functionaries on the board.
In other businesses then the Polish consumer does pay if PiS uses these as Bankomats to fund their giveaways - a prime example is the banking tax. It has cut bank profits in half but the banks are now recouping it by passing a lot of extra charges on to customers and especially to small businesses - for example my own bank charges for a modest spare time consulting business are over 500 zloty this month. PZU are increasing premia and the power and oil companies also increasing their charges.
I am not totally against a portion of strategic companies being state owned so long as they don't interfere too much in the mgmt. or the free market.