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Alphabet (Google), Intel. Investments in Poland. Andrzej Domański, Minister of Finance, comments

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The Ministry of Finance is talking to Alphabet, the owner of Google, about its potential investments in Poland, said Andrzej Domański, Minister of Finance. The head of the Ministry of Finance also met with Intel representatives regarding the planned factory. Domański also announced that on Tuesday the government would discuss the Multiannual State Financial Plan for 2024-2027.

The Minister of Finance emphasized that “private investments are very important” to him, which is why talks are being held with investors in the country and abroad. – I saw Intel in the USA – this investment will be implemented in my opinion. We are also talking to Alphabet about its potential investments in Poland, said Andrzej Domański in a conversation with journalists.

Intel announced last year that it wanted to invest USD 4.6 billion in the construction of a semiconductor integration and testing plant in the Miękinia commune (Środa County in the Lower Silesian Voivodeship) near Wrocław. Ministry of Digitization on February 9 this year. reported that sent a pre-notification to the Office of Competition and Consumer Protection regarding the intention to provide public aid to Intel in connection with the planned investment. Pre-notification is a procedure in matters relating to state aid.

This matter also requires the consent of the European Commission.

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The Ministry of Digital Affairs indicated that in the case of aid for Intel, the pre-notification procedure will be conducted between Poland, the European Commission and Intel. “Analysis is currently being carried out at the European Commission. During a recent visit to Brussels, Deputy Prime Minister Krzysztof Gawkowski talked to Commissioner (Margrethe) Vestager about a fast track for considering the pre-notification application,” we could read in the MC's announcement published at the beginning of April.

Multiannual financial plan and forecasts for Poland

Moreover, Finance Minister Andrzej Domański announced that the government will discuss the Multiannual State Financial Plan for 2024-2027 on Tuesday.

As he explained, due to changes in EU regulations, the Update of the Convergence Program, which the government previously sent every year to the European Commission, will no longer be prepared. Some of the data that previously appeared in the APK – e.g. macroeconomic forecasts – will be included in the multi-year plan.

The Minister of Finance said that he expects that in 2024 economic growth will amount to 3.1 percent and in 2025 it will accelerate to 3.7 percent. – I have seen bank forecasts according to which GDP growth may amount to up to 4 percent in 2025, this means that we will be one of the fastest growing economies in the EU in 2025 – said Domański.

He explained that in the first half of the year, consumption will be the driving force of growth, and in the second half the impact of KPO funds will become visible.

The head of the Ministry of Finance also said that the Multiannual Financial Plan will present assumptions regarding the functioning of an independent Fiscal Council, and the draft law will be presented within “a few weeks”.

– I want the council to be independent and have the power to give opinions on budget forecasts and to be able to give opinions on the entire act. I want members to be elected by various organizations and institutions representing a wide spectrum of economic views, Domański explained.

The minister also announced that from April 30, Bank Gospodarstwa Krajowego will start publishing data on the use of funds it manages on a quarterly basis. – This is an important element in increasing the transparency of public finances – said Domański. He admitted that the mere publication of data would not increase parliament's control over the budget, but explained that in order to maintain the GDP growth rate, all changes should be made gradually.

– I would like to see some funds merged within BGK, we will discuss it together with the Chancellery of the Prime Minister and Bank Gospodarstwa Krajowego – announced the Minister of Finance.

High debt servicing costs

Andrzej Domański also drew attention to the high costs of servicing public debt in Poland. They amount to 2.1 percent. GDP, which means that in terms of this indicator, Poland ranks 6th in the EU. The head of the Ministry of Finance estimated that these costs would increase.

– Poland is one of the countries with the highest debt servicing costs in the EU and this will be a challenge for us. We spend more on debt servicing than on 800 plus. This is a problem that will get even worse in the coming years – the costs of debt servicing in relation to GDP will increase, although fortunately only slightly – emphasized Domański.

Main photo source: PAP/Radek Pietruszka

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