Official English translation of Polish PM Mr Tusk’s speech offering a list of austerity measures, reforms and other changes:
(On 10th of October Prime Minister Donald Tusk has become the first Polish leader to be re-elected since the end of communism. He seems to have been rewarded for presiding over 4 years of strong economic growth, since winning a snap election in 2007. Poland has been the only EU member state to avoid recession, and this year its economy is forecast to grow by about 4%, the highest rate among the EU’s seven largest economies.)
Mr. President! Dear Madam Speaker of the Sejm! Members of the Parliament, Ladies and Gentlemen! Highly Distinguished Guests!
I am highly honoured to be able to speak in the Upper House shortly after the new government, whose works I shall head, has been sworn by the President of the Republic of Poland. It is both honour and great responsibility bestowed upon us by the Poles.
It is natural and very pleasant duty for me to start this speech by extending thanks. I would like to thank everyone in Poland, all citizens, with no exception, regardless of whether they have casted their voice on this team, which shall lead the works of state administration for the next term, or those who have shared a different view on this issue. For my thanks not only are warm words for the very act of voting; first and foremost, it is the highest recognition for the entire Polish nation, the Poles, for this great effort, exceptional courage, composure, and determination they have demonstrated during the past four years.
It was not easy a task, since the times in which we live, have proven to be by far more complex, more unpredictable than anyone could have anticipated just a few years ago. The fact that, throughout those four years, Poland has managed to survive in good health the global crisis, which threatened European and the global economies of developed countries in a manner hitherto unknown in recent history.
The fact that this storm of financial crisis, raging around us, threatens the security of the most developed countries. The fact that all around us, in Europe and worldwide, millions of people accustomed to peace, prosperity, and security, are now facing the spectre of poverty and destabilisation. This all makes us first of all bow down before the efforts of millions of Poles, whose work, effort, patience, and responsibility allowed us all to come off well and safely in these difficult times.
I would like to say that today’s exposé must be perceived as a simple, clear message that responds to the challenges of a present day. I want to ask you for your understanding for the expediency. A number of national strategies, including the Polish international strategy, the main trends in Polish foreign policy – i.e. the elements of every classic exposé – most fortunately have not changed in Poland for years. Therefore, if you allow me, also the guests representing the diplomatic corps, the details of the continuation of this policy shall be presented in Minister of foreign affairs’ traditional speech. Today, I want to openly, very honestly, focus on these difficult challenges, which determine the future of not only Poland, but in every European country, politicians and citizens live in the conviction that it is exactly now the future of their countries and the future of Europe is being decided.
First of all, it is the future of ordinary people. For none of us here has no doubt that all the efforts of our government, the Upper House, both in past and in future, must be focused primarily on the safety and well-being of each and every man, nation, state, but each of each man individually, and each individual Pole in particular.
Therefore, allow me to skip these threads that had appeared both in the previous expose, and – first and foremost – in the public debate, which we were participants to during the previous election campaigns. A great number of words have been spoken and conclusions drawn, and they are still in our citizens’ vivid memory.
Today, I want to emphasize that the starting point at the beginning of this term, the starting point for Poland and the Poles, is both promising and challenging at the same time. The reason I have begun my speech with extending thanks to all the Poles, is that our experience (also described in numbers) shows how well, even better than others, the Poles were able to effectively act counter to the crisis.
Today it is time when we can, in a short sentence, present the most important statistics data that sum up the past four years. Not months, not one year, but the past 4 years. And they might have best described the efforts of the Poles throughout the term that has recently ended.
In 2008 – 2011, the GDP growth in Poland – the cumulated one – accounts for more than 15 percent, i.e. 15.4 percent. The following country in the European Union has achieved 8 percent growth over these four years. The second country – is Slovakia. EU average for those four years is minus 0.4 percent. I want to emphasize this fact not because I seek everyone’s recognition for the government that has stepped down or for those ministers who shall continue their work.
I want to emphasize that this result demonstrates that, as never before in the history, we had managed effectively to catch up with the most developed countries in Europe and in the world. That this result is possible primarily thanks to the efforts, patience, and determination of the Poles. And this is the case.
Therefore, today I want to firmly declare that the more so, we can approach each other seriously in Poland. If we go through this crisis so bravely and wisely, it means that we have to respect and take each other very seriously in public debate, both today and in the future. And this is what I also ask the Upper House for.
These changes, dramatic for some European countries, the changes marked by the financial crisis, also make up for a dramatic, alarming political landscape, the new political landscape in Europe. Europe is changing right before our eyes, and the direction of this change is far from being certain. We are talking here not only about the financial and economic changes, but also about the grand vision of united Europe. The vision that in many places today is being challenged. The vision that might call for a in-depth correction, and so it shall bestow us, the Poles with a duty of being intelligent, courageous, and flexible in our actions. I want to emphasize that in the present European debate on the future of the European Union, in my opinion, there is no place for a political dilemma, whether to be in the centre of Europe or to be cast away at its periphery.
This is the dilemma of political illiterates. The actual dilemma for Poland is how to remain in the very heart of Europe, how to be a real, major player on the European forum, and not how to – due to the crisis – be marginalised, pushed to the periphery or outside the European Union. I am convinced that this great debate on how to build a strong Poland in the centre of the European Union, shall become a debate involving all clubs, perhaps also the communities outside the parliament, outside the world of politics. But I want to firmly emphasize here that the intention of my government shall be working for the strongest possible Poland’s position in the very heart of the European Union.
Today this position, also the political position within the EU, is determined by the State’s finances in particular, the wealth of its citizens but also the condition, financial stability of the State. Therefore, to begin with, let me say a few words on what awaits us in the coming days, and I mean here the budget for 2012. For the year, which might be the most critical year in terms of turbulences in the world and in Europe.
Every day, sometimes even every hour, we are witnessing changes and these are usually negative changes in the reputation, rankings, in the assessments of until recently very rich and stable economies. So, today we have to say very resolutely and honestly that the year 2012 shall require us, the Poles, to demonstrate the ability to make sometimes sudden swings, to approach flexibly the routine – we can not afford to move in a rut. Since thanks to this type of actions, thanks to this kind of philosophy, we have managed to go through these four years really safe.
In the budget for 2012, some data – similarly to the entire world and Europe, a number of data shall be highly uncertain since they shall result from the situation in Poland’s neighbours. Today, no one knows whether Europe as a whole shall fall into recession, whether it is going to be just an unpleasant experience for some countries; but we do know for sure that in a globalizing world, if recessionary phenomena emerge around our borders, they can also directly affect Polish economy and Polish finances. That is why I have obliged the Minister of finances to develop these flexible options.
Surely enough, the Sejm shall be debating one proposal, but we want to ensure the Poles and High House that we shall have in place the mechanisms, procedures, and concepts should during 2012 any phenomena occur that are not predictable today. Hence the need to create, I would say, such smart and flexible options, solutions, so that to be prepared for every circumstances without unnecessary distress. These circumstances shall be born in different places in the world, and least of all in Poland.
Anyhow, our goal in 2012 is to get out of the excessive deficit procedure, which means not only the establishing of this plan, but also constructing the budget in these variants in such a way as to achieve the assumed limit of circa 3 percent of general government deficit at the end of 2012. As far as the government debt is concerned, we assume (and this is the main reference for our works) that it shall fall in 2012 to 52 percent and shall systematically decrease to 47 percent at the end of 2015.
This shall be the result of actions which should also lead to a reduction in the deficit at the end of this term, to circa one percent of GDP. This plan is difficult, yet quite feasible. It is a challenge that not only the government, but we all, shall have to face. So does the Upper House. I present the data on debt according to our national definitions of debt. In order to go safely through the year 2012, to establish the prerequisites for sustainable improvement of financial security, financial discipline also for the years and decades to come, we shall have to take action, including unpopular measures. Including actions that shall call for sacrifice and understanding of everyone without exception. I would like to say that I will present several of these key proposals in quite detail, but this is actually the first step.
This Sejm will also give birth to projects which should enhance this good trend, good – because it strengthens the Polish State. First, we would like to markedly increase and upgrade the levy, which currently is collected insufficiently, on the extracted natural resources, primarily copper and silver. It’s worth noting that – according to international sources – deposits of these two minerals, that are very important for Poland, are among the largest globally and the largest in Europe. We would like that taxation of these reserves, these two metals, as well as other minerals, was a stable source, a stable stream supporting the development of Polish economy. This also applies to the extraction and benefits from extraction of shale gas. Detailed provisions have already been prepared, to replace the previous routine concerning these minerals, so that our dreams of underground riches with regard to shale gas, became tangible, very clear reality. Second, we’ll be proposing decisions on tax reliefs, the new-born baby allowance, tax reliefs enjoyed by some professional groups and a single, universal relief.
First, the demographical challenge is not only the issue of this national anxiety not to diminish in number. We’ve been coping with this demographical challenge for many years, looking for different ways, sometimes to good effect. That’s why I’d like to dispel fears of some people: we’ll use financial instruments to strengthen the Polish population. We want to increase by 50 percent the pro-family tax relief for the third child and subsequent children. The relief for the two initial children in a family remains unchanged, but here we’ll also propose another solution, which is an example – and there will be more of these examples later – that we want, in this and other support systems, to resolutely use the method and principles of social fairness and solidarity of those more affluent with those less privileged. That’s why in families, in which income does not exceed 85,000 zlotys a year. What’s involved here is therefore the second tax threshold – the benefit will be allocated, this pro-family relief will be in a situation where there are at least two children. To put it simply, affluent Poles who have only one child will not receive that benefit. However, when they decide to have the second child or more children, they will enjoy this relief in full scale. We’d like to propose such principle for the new-born allowance also. We maintain the new-born allowance, but it will only apply to families whose income does not exceed 85,000 zlotys annually. We’d like to propose the same principle in limiting the tax privilege for what is called “authorship contracts”. The 50-percent deduction of income will be only possible when that income, from this activity, does not exceed 85,000 zlotys a year. Above this threshold, from the amount above this threshold, those concerned will pay a normal tax, as everybody else. This also applies to this more affluent group. As far as this single universal relief is concerned, there is the Internet relief. Its social importance today wanes due to dynamic development of Internet services and universal use of the Internet. That’s why we propose, being aware that Internet services have become relatively cheaper, to eliminate the Internet relief. This should bring, within these four years, savings of slightly more than one and a half billion zlotys. I didn’t mention specific amounts in these previously discusses cases, because we assume that the increase of the benefit for the third child and subsequent children by 50 percent will be likely, in this time period in which this can be reasonably assessed, to be neutral for the budget. Which means that by changing some rules for the benefit of those less affluent, and at the cost of those more affluent, we don’t want, as a Government, to make money on pro-family policy. We want to maintain the same support stream, but with different emphasis. New regulations have already been prepared, and this is the next issue I’d like to address, to remove the possibility of circumventing the capital gains tax on bank deposits. What’s involved are so-called overnight deposits in the context of the Belka’s tax – I’m using these colloquialisms in order that all those who are well familiar with this practice know what I’m talking about. Which means that the preparation of these decisions is only an interlude to other decisions to allow decisive and prompt reaction to any other attempts at tax circumvention. It’s necessary, when we propose such savings, to continue the process which was ailing in recent years, also when I was prime minister during the last four years – what I’m talking about right now is making public administration leaner and more friendly and subsidiary. Consequently, ministers, regardless of what department they represent, will have to accurately plan for and report on the deregulatory effect in every key project they deal with. What I mean is that this time we’ll be more effective in establishing regulations, because – as you remember – the intention of the last Government and of the past Governments as well, and the intention of all, or almost all, deputies, is similar – for instance when we are talking about building permits. We all want to shorten that period, and then it turns out that we are unable to effectively establish regulations so that this actually happens. We’ll again address this issue so that the building permit, the issuance of the building permit, takes no longer than 100 days for large projects and 60 days for small projects, with simplified procedures.
We want, and this will be the main task, or rather one of the main tasks, of the new Minister of Justice, to streamline the work of courts, which should result, during the term of this Government, in shortening the duration of proceedings by one-third on average. We want to free at least a half of today’s registered professions from any regulation which makes them typical professions with regulated access. We believe that these targets can be achieved, but we ask everyone to collaborate in this regard, because previous attempts brought unsatisfactory results. We’ll build-in in the work of the Office of the Prime Minister, and also count on similar measures at the Sejm, such mechanism that will preclude an excessive production of laws. Only a clearly positive assessment of all consequences of any given draft law will allow to release it from the Government to the Parliament. We’ll also work on new draft laws so that to achieve at least this minimum which is the balance between new regulations and the removal of old regulations. In some countries with well-established deregulation tradition, there are precisely described mechanisms in place which require that, in introducing a new law, regulations have to be removed at least matching in number the newly introduced laws. We’ll work to introduce such mechanism to our legislative practice. The Ministry of Digitization, which is being established within the framework of the management of public administration, will deal with streamlining the administrative activities, using the latest IT technologies, and the progress of digitization. The main goal is not to make the citizens happy in this regard, for they are doing perfectly well without State assistance. What’s important is that the administration, public services, public agencies, have to – much better than now – use modern IT technologies, for the convenience of citizens. This will be the main assignment of the Minister in this field. We would like to assure you that this deregulation effort, exactly because I have here also some grounds for satisfaction so far, will be imperative for all ministers and the whole government, with no exceptions. And I would like to ask all parliamentary groups for concerted support, because this for sure, such as many other matters, but this one certainly – can become a part of this political community we should establish in at least some areas.
When we talk about financial discipline and savings, we have to touch upon the pension system. First of all, I want to say a thing which today becomes more and more evident, namely that the optimistic, even too optimistic decision to reduce the disability pension contribution has resulted in today’s a deficit which considerably exceeds 2o billion zlotys. A solution which could be justified by the optimism caused by an extraordinary economic boom all over the world, as well as in Europe and in Poland, becomes an unfounded and reckless course of action, especially now when we all look for a way to strengthen the financial discipline. And this is why we have to partially revert that previous decision, while understanding circumstances and intentions of our predecessors. Therefore, we shall propose an increase of the contribution to be paid by employers by 2 percentage points. I say this with a heavy heart, but when we have several tools to choose from in order to strengthen discipline of the public finance, we acknowledge that in times of a crisis that can reach Poland too, we have to first of all take care of the security of our citizens, a financial, elementary security of the citizens. It also seems, and I will say a few words about it when I will discuss next point, that increasing the contribution to be paid by employers by 2 percentage points today, at least for the crisis time, since I do not know what my successors will decide, and that is why we are talking about this term of office only, about the next four years, so it seems that increasing the contribution in question for this period of time may close the flow of money which could be brought to market as today, and this is our understanding confirmed by quite unambiguous statistics in this respect, undertakings, enterprises, are not willing to spend money because of the threat posed by the crisis.
Therefore, it is quite probable that an essential part of the funds which the state budget will receive thanks to increasing the contribution by two percentage points, will be the money which would otherwise be rather deposited in bank accounts than work in the economy. We are talking about the times of crisis. This change will allow us to reduce, and only to reduce, deficit of the Social Insurance Fund by approximately 13 billion zlotys per year. Once more I want to emphasise that today it exceeds 20 billion zlotys.
I would also like to propose, taking into consideration the same aspects, as before, namely financial security of rather low-earning citizens, changes to the system of indexation of retirement and disability pensions. We will maintain indexation on the current level because I cannot envisage taking money from the pensioners in such a difficult time. However, taking into account a growing gap between the highest and the lowest pensions, we propose that each year the Parliament could decide, and this is what we will suggest for the year 2012, that indexation of retirement and disability pensions be for some time expressed as quotas and not as percentage. We do not want to turn this solution into a permanent option since there are also reasons for which a number of experts warn against establishing it as a lasting rule. It seems, however, and this is also my intention, that within the next four years we should each year propose and implement the quota indexation so that the gap can be reduced. We also want to apply this rule with respect to the indexation of retirement pensions paid to former members of uniformed services, where the gap is also very worrying and not entirely fair. This is my deep conviction.
I assume that a difficult acceptance and understanding, although without enthusiasm, of the number of measures in question will only be possible if we honestly say that there will be no “sacred cows”, that all who today enjoy privileges, more or less justified, that all of them, without revolutionary and drastic methods, will accept these self-limitations for the benefit of the weakest ones. For the benefit of those who also carry the heaviest burdens.
In this context, I would also like to come back to the decision adopted by the Constitutional Tribunal with respect to the health insurance contribution paid by the farmers. Starting from February 2012, we will propose, in line with the above mentioned decision, but also in a spirit of the social justice, change of the system with respect to the farmers. If our proposal is accepted, the state will continue, as it does right now, to pay the contribution for the farmers having lowest income, that is in the case of farms below 6 hectares. Farmers having 6 to 15 hectares will pay half of the contribution which is today paid by self-employed persons operating outside agriculture. Farmers having more than 15 hectares will pay the full contribution. We are talking about this part of the contribution which falls outside the income tax, that is 36 zlotys for the wealthiest farmers and 18 zlotys in the future in the case of farmers having from 6 to 15 hectares. The next step will be payment of the contribution in accordance with the same principles as those applicable in the common system, including the possibility to deducts its part from the tax.
Now I would like to move to the next step. Since agriculture, despite its specific nature, which we do respect, is a form of economic activity, starting from 2013 we will impose the obligation to keep accounting books by farmers and then taxation of their income in accordance with the general principles. We will start with the largest farms and then gradually and evolutionarily extend these rules to smaller ones. I also want to emphasise that the European Union is finalising works on legal regulations which, one way or another, will impose on all those who receive subventions the obligation to keep accounting books. It means that our solution is consistent with rules which will be probably binding all farmers in the European Union. A am talking about introduction of the obligation to keep accounting books. And introduction of this obligation is the first measure necessary in order to systematically and gradually introduce the income tax.
I would like to point out that regulation of the issue of agricultural accounting will make it possible to build a modern social insurance system for the farmers, which, in effect, will make it possible to depart from the Agricultural Social Insurance Fund. But without this preliminary process it will only be an empty slogan. That is why we have to start in 2013 with these preparatory processes.
I would like to emphasise that this revolutionary implementation of income tax for homesteads will make it possible to reduce other encumbrances, in particular, the agricultural tax. It just cannot be that the Polish countryside, modernised also in this aspect, should be encumbered with additional burdens. They must be balanced, meaning that implementation of new rules must also mean lifting the burdens of the previous system.
I also would like to point out that the argument which we sometimes hear in suggestions that dozens of billions of zlotys can be found in the pockets of Polish farmers, that the Polish farmer has so much money hidden under the pillow that if we reached for that money, we would be able to stabilise public finances, is false. This is not true! The Agricultural Social Insurance Fund is not a gold mine for Polish farmers. On this occasion I would like to remind everyone who sometimes points to the Agricultural Social Insurance Fund as the cause of mishaps that the benefits being paid by the Agricultural Social Insurance Fund are not worth being jealous of. And that is why these new rules, which we will start implementing in 2013, are not a retortion, it is introduction of Polish farmers, Polish countryside to common systems. We believe that this is more fair, and for many farmers this does not have to be detrimental, it can only be beneficial, just to mention that it will be possible to make write-offs in income tax towards allowances. I am talking about pro-family allowances, which I mentioned before.
The old age pension system is, above all, the most important dilemma. We propose to solve it. To continue reforming the old age pension system. Previous measures have already aroused emotions, what I mean are the bridging pensions and Open Pension Funds. But this continuation is absolutely necessary if we seriously want the Polish public finances to be really safe. I would like to say that if we think, and we must think also in the perspective of not the next budget and not this term of office, but of the old age security of today’s young people. But maybe, above all, also the financial stability which will allow us to steadily pay pensions to today’s and future pensioners. Because this is conditioned by survival, and not all countries, as can be clearly seen, will survive this crisis in the financial sense.
In order to achieve this it is necessary to extend the retirement age, to extend the working time to raise the retirement threshold.
I am aware that this will not be an easy decision especially for those whose work is very strenuous, who know the burden of physical work. And it must be accompanied by efforts to make the work of elderly people, as well as the forms of care for elderly people who will be working more effective and more generous than up to now. But we will not keep this old age pension system, we will not keep Poland above the water during this storm if we do not decide to take this very difficult step.
We propose, starting in 2013, which means practically immediately, to gradually equalise and increase the retirement age of women and men. Ultimately until the age of 67. We will propose to achieve this in the softest manner possible, which does not mean painless, of which I am aware. In connection with this we propose the following system: every 4 months we will shift the retirement age by another month, which means that each year we will work 3 months more. Which will mean that we will reach this level of 67 years in 2020 as regards men and in 2040 as regards women.
Thanks to these changes the state will stop going into excessive debt, which will make it possible to pay old age pensions to everyone today and in the future. As regards 2020, then in this perspective, thanks to the introduction of that change, this debt, which, in relation to the GDP, will drop to 44 per cent, in 2030 – to 40 per cent, and by 2040 – to 35 per cent of the GDP.
We are not talking about dry statistics. These are steps, these are measures which may guarantee us lasting security of public finances not just for a year or even 5 years. In simple terms this means financial security of those who will depend on the old age pension system. If I were not fully convinced that the security of the Polish pensioners of today and in the future depends on this step, I would not propose it.
And I must also admit that the aim of this is to stabilise the financial condition of Poland. This will bring about a positive effect as regards Poland’s reputation, and, in consequence, the security of our debt securities, not only when we reach that age but also today. Because only those countries, few in Europe, only those countries which started implementing a similar reform in the old age pension system, have an opinion – and this opinion is very precious today – of countries which will steadily go through those most difficult years.
I also would like to point out – so that there is no shadow of hypocrisy here – that this is the main objective of that reform. But there is a side-effect to that reform. The side-effect is that pensions will be significantly higher. We will retire later but the pensions will be higher. For a woman who is about fifty today this means that she must work 3 years more but her pension will be approximately 20 per cent higher. For a woman who is 39 today this means that she will have to work 7 years more but her pension will be approximately 80 per cent higher. This is not insignificant, although it will surely not balance out the hardness of that decision today, especially among Polish women.
We are also proposing a review and decisions regarding the groups that benefit from privileged pensions as at present. This refers to uniformed services, miners, prosecutors and judges, as well as priests. I mean those who join the uniformed services now, starting from 2012. Therefore, these changes in accordance with our public obligations, in the spirit of decisions issued by the Constitution Tribunal, the changes which we propose, will not affect those who are already in the service today or those who have left the service and are collecting the pension today. I would like to stress this again, the changes will apply and may apply only to those who join the service as from the beginning of 2012. We propose these changes on the following level: the pensionable age should be set at 55 years, and the term of service at 25 years. This is all with regard to the uniformed services.
As far as privileged retirement conditions for miners are concerned, we will propose maintaining those privileges only for those who are employed directly in extraction at all types of mines, solely those who are involved directly in the actual extraction. Today, they benefit from a specific privilege that is dedicated precisely to them. And those privileges should be maintained. However, there are some people who benefit from certain special rights to mining pensions of one type or other, who are not involved directly in extraction, and they will be able to take advantage of a transitional pension so that they can join the general system as soon as possible.
In mid year, we will also propose the changes that refer to those special rights of prosecutors and judges that result from them retiring from active service.
I would like to stress that all of the changes which we will propose are also aimed at persuading the citizens that the burdens and hardships related to protecting Poland against crisis must be distributed as evenly as it is possible. This means that at this time we must primarily protect those weakest ones. Hence, the proposals address mainly the special rights and privileges.
Therefore, a discussion is also needed with regard to the retirement protection for the religious ministers. Here, I mean the part financed by the State via the Church Fund. We believe that similarly as in the case of the Property Commission which has ceased to function, the premises have ceased to apply for the very reason that the property discussed all those years ago has been restored to the churches. The premises for today’s solution have ceased to exist and the religious ministers should participate in the general social insurance system. If it requires any changes to the Concordat Agreement, and it is not a must, but if it does, we are ready to make them.
This is the first stage. This stage will allow to protect the Poles’ pockets against any radical cuts that threaten the societies all around us. Also in the neighbour states.
We have been in charge of Poland’s affairs for 4 years, with a good result, and this is how it has been evaluated by Polish citizens, while striving to maintain those two big potential Polish possibilities, opportunities and use those two Polish opportunities. First of all, we propose this intelligent system for reacting to crisis threats without the restrains of the routine, without any excessively hard and difficult to change regulations, so that the Polish state is as ready as possible also to change, so that it can swiftly react whenever necessary. We were taking the decisions and the decisions now remain the same. Primarily, to maintain the main source of Polish economic success of the recent years, namely not to expose the Poles and the Polish economy to any overly radical budget cuts. Extending the pensionable age is a very serious burden, I am aware of that. But it means not reaching into the pockets of every Pole now or in the future. Nor is it a budget cut that will result in decreased amount of funds in the Polish economy. If some of the suspicions are right, that the internal market and thus the capacity of the Poles to spend, earn and spend money, that it is one of the main sources of the Polish success, then we must absolutely maintain it.
Secondly, if we truly want to start repairing the public finance system, we cannot just start anywhere and cut blindly as has happened in some countries. This would bring about some very negative social and economic consequences. We must administer cuts with precision, first of all where there are privileges, special rights enjoyed, and in other cases also where there is any system abuse or simply someone playing a wise guy. This is where we must act with particular determination so as to protect the hard working Poles, protect them from the cuts the way that governments failed to protect their citizens in our neighbour states in almost all of Europe. I am positive that these decisions will enable us to protect the Poles in this way.
I also want to stress that the same way as in these four years, when almost everywhere in Europe and in the world the decisions were made to introduce big cuts when it comes to the army and other public services which determine the strength and safety of the state, we have maintained the ratio in those last four years. And we want to maintain it, the so called NATO ratio.
Today’s times show very clearly that only strong players will survive this crisis. If we want to play the role in Europe, that is adequate to both our aspirations and capacity, we must be above all strong. One often hears today about the hard to accept concert of powers in Europe. Today, at this European table, as one funny politician has remarked, at this political dinner you are either at the table or on the menu. Poland must be and will be at the table. Thus, the Polish army, the Polish military and police forces will be under special protection, also in terms of finance.
While reviewing the pension system which in some aspects is perceived by the Poles as grossly unjust, we should at the same time remember what is also my clear knowledge that the gross majority of policemen and soldiers earn too little. That the funding which we will inject into the police and the military forces must be aimed with much more efficiency and intelligence and dedicated to the actual defence and police tasks, namely the safety and protection of Poles. Hence, we propose for the start a raise at the police and army in the amount of ca. PLN 300 for each policeman and solider. We would like to introduce that raise in mid year, as of 1 July. Conditions allowing, we would like to repeat this raise at a similar or perhaps a slightly lower level, at the end of the Government’s term in office.
What is of key importance to leading Poland through these times is not just a belief in our possibilities and our strengths. It is also a seamless cooperation between the main public institutions responsible for the state. I want to say that this cordial, very demanding and high goals setting support of Mr President, good cooperation between the President, the Government, Madame Speaker of the Seym, Mr Speaker of the Senate, the Governor of the National Bank of Poland, the heads of other institutions in charge of safety and order in public finance, they are all a prerequisite for Poland to go through this crisis safely. I would like to thank all the partners in what has been perhaps the largest in the recent years fight for safe Poland, for their readiness to cooperate, as I believe that this is one – hard to statistically measure – but we all feel that this is one of the main sources of Poland’s success at present and in the future – good cooperation with regard to issues which beyond any doubt are fundamental to Poland’s future and future of the Poles.
I would like to say big thank you to the Polish Peasants’ Party for creating with us, once again, a safe coalition for Poland. We are building today in Poland a big political centre safe for the Poles. Not for political ambitions or aspirations.
I deeply believe that the Polish Peasants’ Party and the Civic Platform make up the government with room for different types of approach. From Minister Gowin through to Minister Arłukowicz. From a conservative approach to the moderately left-wing approach. From the Polish Peasants Party to the Civic Platform. Do you know why it is so important to establish such a wide centre? Because we guarantee responsible, safe, not risky but whenever necessary brave, modern activities of the Polish state during these special times.
What I want to say is that this political centre, built by us together, may also protect Poland against any radical movements from both the right-wing and the left-wing. The radical movements that have been demonstrated in such a harsh way for the Poland, on the streets of Warsaw on 11 November.
I am aware that in recent years, as has been shown clearly in the recent election campaign, big financial and economic challenges were also accompanied by new challenges related to civilization, social norms, culture. It is important to understand those changes but our coalition, the Polish Government, public institutions, Polish state are not here to conduct a revolution in morals. The purpose of Polish state is to ensure to the Poles a safe and possibly affluent life in these difficult times.
I also want to mention the understanding of the civilisation and social changes. Because we may not close our eyes particularly to those changes that are positive, related to e.g. equal status of women and men, improved safety of children in our families, etc., but we may not also pretend that the evil is good when the rushing of such changes takes shapes or is expressed in an unacceptable way. I want to say that the main task during the crisis, and in the times of the global tensions, in the times so uncertain, globally, that have not been witnessed for a long time in the history, it is the national unity that is so important and we should build it together, regardless of our disputes and differences. And that national bond needs shared signs, shared symbols, a shared tradition, and respect for that tradition. We do not need to share the same system of values in one hundred percent. No one will be forced to do so. And also we should not force anyone into Christianisation, but also no one should be forced into secularisation. May no political attempt to desecrate the signs and symbols that are so important and sacred for most Poles. The cross should not be used for beating the political adversary, like with a club, but the cross should not be the evidence of another political war here in the Seym or outside this building.
If we are to be a great and strong nation in these difficult times, we must skilfully and wisely lean on such common tradition. We must not cause conflicts between the challenges of the tradition and the contemporary times. We will be truly modern only when we are able to jointly respect our foundations. Whether it is the cross or the memory of John Paul II, our national symbols, our white and red flag, or 11 November celebrations, or the Eagle.
I want to say that on the streets of Warsaw on 11 November, it was the radical right-wing and left-wing, using bandits and hooligans or German anarchists that attacked our national holiday. Let it not serve as a symbol that the Poles cannot live in the state of national harmony. I am certain that we can do it. From this side of the room to the other.
Our centre, our coalition wants to be helpful also with regard to this issue. We must believe that each one of us, here in this room, is needed by Poland. We must believe that Poland based on tradition and Poland that believes in its future, its modernity, is possible. That in these times of crisis, as in the past 4 years, for the next 4 years and thereafter, we will prove that in more than one way Poland can be the best in Europe. That it can be the leader where so far we have not even imagined being one. We must understand that the opportunity is unique, it will not repeat itself, but this unity, this elementary unity, founded on tradition and modern challenges, must become a fact also here, in this room. I ask you to try to take care of some most important issues for Poland together. Believe in the future of Poland. We believe, Thank you.
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