Government spending may have to be cut back in a number of areas amid the current energy crisis and soaring inflation, which has necessitated pumping billions of zloty into shielding households and businesses, admits deputy prime minister Jacek Sasin.
However, a government spokesman has denied media reports that plans to build a new “mega-airport” in central Poland will be axed as part of the cost-cutting measures.
“It is necessary to review spending…[and] some spending may have to be suspended for a certain period,” said Sasin, quoted by news outlet Interia. “There were times of prosperity, [while] today is a time of crisis.”
He added that two priority areas for the government, which were likely to be spared from cuts, are defence spending (which was recently increased to 3% of GDP) and helping the less well off.
“We are proud of [our social policies] and will defend [them] until the end,” said Sasin. He added that defence spending “is key to our security” amid Russia’s war in neighbouring Ukraine.
“All other areas will have to be reviewed for very good money management – spending [only] as much as is necessary,” explained Sasin, who also serves as minister for state assets.
Sasin’s remarks follow confirmation from the prime minister, Mateusz Morawiecki, yesterday that the government will withdraw some of its measures designed to soften the impact of inflation, in particular its cuts to VAT.
Morawiecki said that the decision had been made due to “threats from the EU” because Poland had cut VAT more than permitted. He pledged that the measures would be replaced with others to continue supporting households.
However, the newspaper that originally reported the news wrote that privately the government was pleased to be able to cut back on expensive policies while blaming Brussels for the decision.
The news comes amid continued uncertainty over Poland’s European funds, with the EU blocking billions of euros in post-pandemic recovery grants and loans as well as further billions in cohesion funds over rule-of-law concerns.
The PM has confirmed Poland will withdraw some anti-inflation measures due to "threats from the EU" against the lowering of VAT
But the newspaper that first reported the news says the government may welcome ending expensive measures while blaming Brussels https://t.co/EAPrfjdc9a
— Notes from Poland 🇵🇱 (@notesfrompoland) November 7, 2022
Meanwhile, the Wprost weekly reported yesterday, citing an unnamed source close to ruling party leader Jarosław Kaczyński, that among the projects which could be scrapped amid cost cutting is the government’s flagship plan to build a new mega-airport and transport hub in central Poland.
However, government spokesman Piotr Müller told broadcaster Polsat News that the Solidarity Transport Hub (CPK), as the project is known, was not under threat.
“We are not withdrawing from this project. We consider it one of our strategic investments,” said Müller. “We will invest in the CPK to the extent necessary.”
In July, the company responsible for the construction of the CPK signed an agreement for design work totalling 7 billion zloty (€1.5 billion).
Main image credit: Ministerstwo Aktywów Państwowych (under CC BY-NC-ND 3.0 PL)
Peter Kononczuk is senior editor at Notes from Poland. He was previously a journalist for Agence France-Presse (AFP) in London and Warsaw.
