Parts of pension reform act sent to Constitutional Tribunal

photo - PR

President Komorowski is thought to be particularly concerned about parts of the act seeking to ban investments of the private pension companies in Poland's sovereign bonds.

Under the new law, private investment companies that are part of the country's pension system will be forced to hand over about half of their assets to the state in order to reduce public debt.

Krzysztof Łaszkiewicz, an adviser to the President, has said that the president considered various stances: the issues of a balanced budget on the one hand and the widely discussed constitutional values on the other.

"The discussion showed that the opinions are divided," he said.

Critics of the new legislation, which include former finance minister and central bank governor Leszek Balcerowicz, said that the new pension regulations amount to nationalization. President Komorowski himself expressed serious reservations, saying that the bill posed greater risks for future pensioners.

He admitted, however, that the overhaul was necessary to keep Poland's public finances on a stable footing.

The 2014 Budget Bill, approved by the Parliament this month, assumed that the pension reform would come into force at the beginning of 2014.

Prime Minister Donald Tusk welcomed the President’s decision. He said that his cabinet is confident that the legislation is compatible with the Constitution and therefore has not prepared any contingency plan, should the Constitutional Tribunal adopt a different stand.

According to political analyst Norbert Maliszewski, by signing the legislation and sending it to the Constitutional Tribunal, President Komorowski dissociated himself from the government policies and demonstrated his unwillingness to get involved in an open conflict.

With an re-election in mind, Maliszewski told Polish Radio, Mr Komorowski wants to show himself as both a critic of the government and someone who is responsible for the state. (mk)