Poland must expand economic reforms to best weather EU crisis - President Komorowski
September 5, 2012
Polish President Bronislaw Komorowski has a five-point plan for economic reforms to help Poland better endure the European crisis as Poland must still fight to improve its own competitiveness within the EU while relying on deeper integration to aid the EU as a whole.
"Deeper integration, also in economic policy, is what we all sense is a condition for beating the crisis on the European scale," Komorowski said during a policy speech at the economic summit in the southern Polish resort town of Krynica.
"But beating the crisis in the European Union will be possible, or at least more likely, if we are able within our own nations . . . to seek solutions that will allow our economies to be more competitive and attractive."
In Poland, Komorowski would further tighten public finances to reduce reliance on financial markets, increase the security of the financial system with additional regulatory frameworks, enact "significant" reform of the labor market, keep the domestic market buoyant and diversify export markets.
Increased safety of public finance tops the Polish president’s policy list. An eventual "reduction in dependence on financial markets" should come when the nation's firms are capable of sustaining a recovery.
The financial market needs further bolstering, predominantly through construction of mechanisms for deep restructuring and even orderly liquidation of defunct financial institutions.
"Significant" reforms of the labor market tied at least in part to SME support and new labor codes allowing firms to go through the cycle without cutting jobs will be crucial to maintaining the strength of the domestic market, Komorowski said.
Exports must be reshaped to overcome a dependence that has been developed through Poland's EU membership.
"In recent years there has been a concentration by geography of Polish exports," Komorowski said of the overwhelming share of Polish exports heading to western Europe. "Today this type of trade is revealed as a kind of threat. We need to adjust our vectors of interest."