delphiandomine
25 Feb 2016
News / Poland's post-election political scene [4080]
Why did Szydło say that these were her priorities for the first 100 days if they had no intention of fulfilling them?
As an aside, Morawiecki seems to be a real thorn in the side of the government. He's now made it crystal clear that the situation with the ZUS deficit is severe and that drastic action will have to be taken.
For readers that are unaware - Poland's social security system is in a huge mess.
wyborcza.biz/biznes/1,147880,19669459,zatrwazajace-dane-zus-na-emerytury-moze-zabraknac-nawet-400.html
The problem is partially caused by unreasonable transfers. Miners for example have many special privileges when it comes to retirement, which results in the State having to subsidise the pensions of retired miners to the tune of 6 billion złoty a year. The situation is bad, and to make matters worse for the government, these numbers are based on the retirement age of 67 for men and women.
However, that's not all. Even if we take the optimistic ZUS forecast - a deficit of 50 billion złoty a year that needs to be covered by the budget - Poland also has to transfer 16 billion złoty a year to the farmer's social insurance fund (farmers pay a very special, privileged, tiny rate of social insurance) as well as 13 billion złoty to people that served in the uniformed services. (mundurówki - Polonius?)
That means that in the best case scenario, Poland has to pay 79 billion złoty a year from the budget just to cover the shortfall. To give an idea how serious this is - the Polish budget for 2016 predicts revenues of 313 billion. As the article says, the authors of the new pension system in 1999 envisioned that there would be a single pension rate for all retired people without any special privileges for farmers, miners and other special groups. Unfortunately, no government since then has dared to introduce such a reform because of the usual hysterical overreaction by those special interest groups.
Needless to say, cutting the retirement age was a promise that simply can't be kept.
Have you ever heard of any poltical party anywhere that fulfilled all their campaign pledge in 100 days?
Why did Szydło say that these were her priorities for the first 100 days if they had no intention of fulfilling them?
As an aside, Morawiecki seems to be a real thorn in the side of the government. He's now made it crystal clear that the situation with the ZUS deficit is severe and that drastic action will have to be taken.
For readers that are unaware - Poland's social security system is in a huge mess.
ZUS has calculated that over five years will be a deficit of 250 billion złoty for pensions, and the pessimistic version - 400 billion. The hole will be greater if PiS lower the retirement age. "We risk disaster" - warns Deputy Prime Minister Mateusz Morawiecki
wyborcza.biz/biznes/1,147880,19669459,zatrwazajace-dane-zus-na-emerytury-moze-zabraknac-nawet-400.html
The problem is partially caused by unreasonable transfers. Miners for example have many special privileges when it comes to retirement, which results in the State having to subsidise the pensions of retired miners to the tune of 6 billion złoty a year. The situation is bad, and to make matters worse for the government, these numbers are based on the retirement age of 67 for men and women.
However, that's not all. Even if we take the optimistic ZUS forecast - a deficit of 50 billion złoty a year that needs to be covered by the budget - Poland also has to transfer 16 billion złoty a year to the farmer's social insurance fund (farmers pay a very special, privileged, tiny rate of social insurance) as well as 13 billion złoty to people that served in the uniformed services. (mundurówki - Polonius?)
That means that in the best case scenario, Poland has to pay 79 billion złoty a year from the budget just to cover the shortfall. To give an idea how serious this is - the Polish budget for 2016 predicts revenues of 313 billion. As the article says, the authors of the new pension system in 1999 envisioned that there would be a single pension rate for all retired people without any special privileges for farmers, miners and other special groups. Unfortunately, no government since then has dared to introduce such a reform because of the usual hysterical overreaction by those special interest groups.
Needless to say, cutting the retirement age was a promise that simply can't be kept.