Poland delays lowering of retirement age to 2017

By bne IntelliNews February 26, 2016

The Polish government will not lower the country's retirement age until 2017, Prime Minister Beata Szydlo said on February 26.

Szydlo’s Law and Justice party (PiS) won the election in October with flagship policy pledges to increase social spending and unravel the previous government’s pension reforms this year. While the main promise of increased child benefit is being implemented already, the delay to the retirement measures suggests the government is struggling to make the budget numbers work.

PiS promised to scrap the only meaningful reform of the Civic Platform government's 8 years in power. The business-friendly party increased the age of retirement to 67 in 2012, despite protests. PiS said it will return to the old system in which men retire at 65 and women at 60.

Critics have panned the idea, noting huge costs and negative effects on the pensions system and labour market. PiS had estimated the cost of the reform at PLN2.7bn for 2016, but according to Szydlo it now needs to be delayed until 2017, although she failed to specify the reasons for the postponement.

The programme of child benefit, which will kick in from April, is estimated to cost PLN17bn in 2016 and PLN20bn next year. To cover the cost, the government has introduced a bank tax and is working on a tax on retail turnover. However, analysts still suggest concern over the budget.

 

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Protests against judiciary reform continue to rock Poland

Polish protests against the government's judiciary reforms continued for a sixth day on July 23, as crowds sought to add to pressure on President Andrzej Duda to veto the controversial bills that ... more

Czech judiciary denounces Poland's move to end separation of powers

Senior Czech judges on July 21 denounced Poland's judicial overhaul as an attack on the rule of law. With big street protests in the Czech Republic's neighbour seemingly gathering momentum – 120 ... more

Strongly profitable Czech petrochemical maker Unipetrol puts cracker explosion behind it

Unipetrol looks to have finally got over the August 2015 fire and explosion that wrecked its steam cracker, an indispensable installation in the production of ethylene feedstock needed to manufacture ... more

Most Read

  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    9 hours ago
  2. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    18 hours ago
  3. EU allows Gazprom to use an additional 40% of OPAL gas pipeline's capacity
    1 day ago
  4. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    5 days ago
  5. Bosnia’s ruling coalition collapses
    3 days ago
  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    9 hours ago
  2. CHINA RISING: When sleeping giants meet
    14 days ago
  3. Belarus’ retail king Euroopt goes on the road
    20 days ago
  4. STOLYPIN: Russia’s cyber-challenge cuts both ways
    22 days ago
  5. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    18 hours ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss