Balcerowicz - government must make urgent reforms

Leszek Balcerowicz is among the economic liberals who criticise the government for its alleged timidity on fiscal reforms. He argues that there is an urgent need to raise the retirement age, cut social spending programmes and step up privatisation efforts.

Asked about the challenges facing Poland in the context of the problems encountered by Greece, Spain and Portugal, Leszek Balcerowicz told reporter Michal Kubicki that "you have to be very careful about spending. Do not believe in various Santa Clauses who promise you more and more spending because you would pay the price."

"After the years of excessive booms, you have bust, so it’s better to increase spending at a more moderate rate to avoid crisis," Balcerowicz says, adding that "you [also] have to improve the economy, make a much better environment for business and improve the investment climate. These truths have to be transmitted for the political system. This is the main challenge." (jb)