Poland unveils public finance consolidation plan

Polish Prime Minister Donald Tusk on Friday presented a "Plan of Development and Consolidation of Public Finances in 2010-2011."

Tusk envisaged the introduction of a cap on discretionary spending growth at 1 percent in real terms as well as the possibility of introduction of an additional element lowering public spending to GDP ratio to below 40 percent.

The plan foresees the acceleration of the privatization process to make the economy more efficient and limit the growth of the level of public debt.

Tusk said that this year, his government will prepare draft laws which are to start the process of achieving a universal pension system, to cover members of the uniformed services, and the unification of the disability payment standards from the social insurance fund.

The government will also try to convince parliamentary partners to the idea of raising the present retirement age for both the men and women.

The plan provides for steps cutting red tape. According to the PM, the government achieved certain progress in this field but there is still much to be done to cut red tape in investment and economic processes.

<i>Source:Xinhua</i>