Both fiscal and monetary policy in Poland should be calibrated in such a way as to prevent the consolidation of elevated inflation in Poland, the Organization for Economic Cooperation and Development (OECD) assessed in a report. She recommended introducing changes for Poland, including the retirement age.
“Macroeconomic policy should find a happy medium. Both fiscal and monetary policy should ensure that inflation will not persist at an elevated level,” the cyclical report on Poland said. It was further added that “The central bank should continue to ensure that elevated inflation expectations will not persist and be ready to further interest rate increases if necessary”.
According to the organization credit holidays should not be continued in our country after 2023. In the opinion of the OECD, a better option would be to use the Borrower Support Fund.
According to the OECD, temporary fiscal relief measures related to the energy crisis should be continued if needed. At the same time, the organization sees room for more targeted assistance in the future, to avoid increasing inflationary pressures.
The OECD proposes changes to the retirement age
According to the OECD, improving the income base and spending efficiency would help to balance public finances in Poland.
“Reduced VAT rates and tax exemptions can be further revised, and so can property taxation” – it was written.
Strengthening the fiscal framework in Poland by reviewing the fiscal rules in the context of EU reforms in the area of governance and establishing a fiscal council would, according to the OECD, help maintain Poland’s fiscal credibility and support better and more transparent management of public finances.
OECD postulates extending the retirement age in Poland and making it equal for both sexes.
Main photo source: Adam Warżawa/PAP