Komorowski: Pension reforms 'essential'

Bronislaw Komorowski. Photo: prezydent.pl

A draft bill prepared by the government this month would allow for a portion of the private Open Pension Funds (OFE) invested in Treasury bonds to be channelled back into the country's social security system.

“We cannot pretend that this is a desirable solution,” Komorowski acknowledged in an interview with RMF FM.

However, he argued that “these changes to the Open Pension Funds are essential as far as the budget is concerned, and so they are also essential for Poland's financial security.”

Proponents of the draft bill, variants of which have been debated in recent months, argue that the reform will reduce public debt.

Former Finance Minister Jacek Rostowski, who lost his post this month in a far-reaching cabinet reshuffle, had championed the reforms, amid criticism from noted economists such as Leszek Balcerowicz. (nh)