Poland ought to not reduce retirement age: EU’s Dombrovskis

WARSAW Poland ought to not reduce its retirement age as this would negatively influence the pension technique and the labor industry, European Commission Vice President Valdis Dombrovskis was quoted as saying on Friday.

Poland’s new government, the socially conservative and economically populist Law and Justice party (PiS), wants to reduced the retirement age to 60 for girls and 65 for guys. The prior economically liberal government had decided in 2012 to progressively raise it to 67 for both men and females.

“We will insist that the government does not backtrack from a earlier choice to improve it (the retirement age),” Dombrovskis told Rzeczpospolita newspaper.

“If it does, this will negatively impact the stability of the pension technique, the level of pensions and the supply of labor on the market place,” he stated.

Poland has 1 of the lowest fertility prices in the 28-nation European Union, which signifies that, barring a modify in the quantity of youngsters being born, it will face a sharp decline in population and escalating costs to look right after the elderly.

Dombrovskis also mentioned Poland was amongst the EU nations with the highest number of allowances and decreased rates of worth added tax, so it should consider lowering them in order to boost tax collection, a single of the government’s targets.

Poland must take action to lessen the share of temporary employment contracts, which now account for about a third of all job contracts, the highest share in the EU, Dombrovskis mentioned.

Earlier this month Dombrovskis urged Poland to stick to a accountable fiscal policy and hold its deficit below an EU ceiling of 3 percent of national output despite Warsaw’s strategy to exceed it.

(Reporting by Marcin Goettig Editing by Gareth Jones)

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