2006 OECD Economic Surveys: Poland 2006

image of OECD Economic Surveys: Poland 2006

This edition of OECD's periodic review of Poland's economy finds that growth has strengthened again in Poland, but that higher rates of investment, further structural change, and improved labour and education policies are required to sustain this growth. After analysing the key economic challenges Poland faces, this Survey assesses monetary and exchange rate policies, examines what is needed to achieve fiscal sustainability, and looks at how Poland can boost and adapt human capital through improved education. It closes with at chapter on structural adjustment covering sectoral reallocation, entrepreneurship and innovation, and labour market reform.

English Polish, French


Achieving Fiscal Sustainability

Although Poland’s fiscal position has improved in recent years, public expenditure is not well controlled. Moreover, despite an important earlier reform of the pension scheme, significant population ageing will generate upward pressure on spending. Expenditure on social transfers is particularly high, and the taxes required to finance them create a tax wedge that is one of the highest among OECD countries. Since EU accession, transfers to Poland have increased; this is an opportunity for the country but also a challenge for the budget. This chapter discusses: i) how to improve the fiscal framework in order to achieve fiscal sustainability; ii) means of reducing public expenditures so as to lower the tax wedge; iii) ways to efficiently absorb transfers from the EU.

English French

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