Celowa Spółka Inwestycyjna (CSI), a special purpose company, is a provisional name of the company which is being created for the implementation of the government’s Polish Investments programme. Together with Bank Gospodarstwa Krajowego (BGK), it shall provide financial support when either the first or the last zloty is needed in the process of implementing major infrastructure projects - says Paweł Tamborski, Deputy Minister of the Treasury in an interview for Financial Observer.
The finance minister believes that next year the European Union will decide to abrogate the excessive deficit procedure against Poland. This would give the government a free hand to implement reforms stimulating the economy. But Poland is at a distant position among 10 countries currently covered by the procedure and waiting for its abrogation.
When adopting last year the act reducing the level of the contribution transferred to Open Pension Funds (OFEs), the government promised another amendment. It was designed to force an increase in competition between the funds, improve their efficiency and reduce management costs. The government failed to keep its promise. This may prove that OFEs are already treated as a temporary solution.
The announcement of Prime Minister Donald Tusk’s keynote address has spurred the Polish opposition into action. In early September, all opposition parties presented their ideas for the economy. They can hardly be called programmes, as they have the form of more or less haphazard proposals. Their common feature is a disregard for the economic situation in the region and for the declining power of the budget.
At the end of September at the latest, a draft budget for 2013 will be submitted to the Sejm. Due to the economic slowdown, it may be difficult to implement it, but this does not have to be so. The budget has many safes with funds. We have asked Elżbieta Suchocka-Roguska and Halina Wasilewska–Trenkner, authors of many budget drafts, whether it is possible to reach for such funds.
When Wayne D. Angell, who passed for the one of the Fed’s most vigorous inflation fighters, left the Fed in 1994, one of the American newspapers commented on his resignation – Angell leaves, the demon of inflation arrives. However, concerns that inflation would rise were not confirmed. In Poland, it may also be difficult to tell who is a true “hawk” and who is a “dove”.
The collapse of Amber Gold has generated a number of calls for liquidating parabanks or bringing them, on a mandatory basis, within the scope of oversight. However, identifying financial institutions that are not subject to supervision exercised by the Polish Financial Supervision Authority (KNF) with pyramid schemes is a major simplification.