Szczurek trumpets Poland's low debt

"In the last seven years, until 2014, the increase in public debt in Poland was not only one of the lowest, after taking account [the inclusion of] Open Pension Funds (so-called ‘OFE’), but also was the fifth lowest [in the EU] without taking into account any changes in the pension system. If someone does not believe this let them consult the main indicator of the costs of servicing the public debt, i.e. government bond yields, which have never been so low as today,” Szczurek said.

The yield on Poland’s 10-year bonds was 3.3 percent in mid-June, having risen in recent months, against a decline on other European debt markets. The yield had been 1.9 percent in January, although still historically low, having been over six percent in late 2010.

The philosophy of the government has always been to approach fiscal policy in a way that best serves the economy, Szczurek told MPs debating execution of last year’s budget.

"We have limited public spending, whenever possible, and done so in such a way that it does not hurt economic growth," Szczurek said.

The minister added that economic growth had accelerated and that the private sector had recovered, adding that this was the ideal moment “to reduce the deficit and reduce public debt.”

He also referred to allegations made by the opposition that the government had had to delve into moneys accumulated in the OFE to cover public debt.

Szczurek stressed that Poland is no longer a net recipient of capital. "No, Poland is now investing more abroad than is being invested in Poland. We have a surplus on the trade balance, we export more than we import. Taking into account net cash flows from the European Union, Poland invests its savings in other countries. This is a measure of the stability of our economy," he concluded. (jh)