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Poland's new government's likely actions

Tuesday, October 27, 2015 5:20 AM UTC

The new government in Poland will probably focus on the low income families and credit growth in the SMEs and infrastructure investment. It may impact GDP growth. However the total impact of quasi fiscal stimulus on demand side could be limited in 2016.

PiS will start from introduction of a monthly allowance of PLN500 per child (estimated cost: PLN22bn), increase the standardised personal income tax deduction to PLN8,000 (estimated cost: PLN7bn).

"They may also reverse the retirement age reform, reinstating the age of 65 for men and 60 for women (estimated cost: PLN40bn, including PLN30bn for the budget in years 2016-2019), lower the tax rate for small enterprises to 15% from 19%, raising the national minimum wage to at least 12PLN an hour. The rest of costly measures will be implemented step-by-step", says Societe Generale.

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Poland's new government's likely actions

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