Under the pretence of war, PiS wants to drive Poland into a crisis
Russia's criminal invasion on independent Ukraine is now in its ninth month. Invasion’s tragic consequences reached also the territory of Poland, which may turn out to be even more detrimental if PiS passes a change in the constitution. The amendment is about excluding defense spending from public debt. The ruling coalition is blind to arguments that security is not only about tanks and cannons.
The assessment by the parliament’s Public Finance and National Defense committees of the draft amendments to the Constitution proposed by PiS MPs, scheduled for late Tuesday evening, was postponed to Friday. The fundamental change for the Polish economy would concern Art. 216 sec. 5 of the Polish Constitution. It formulates a clear and absolute ban on incurring debt or granting financial guarantees and securities, which would result in the state public debt exceeding 3/5 of the value of the annual gross domestic product.
Meanwhile, PiS MPs want to weaken this ban by excluding defense spending from public debt, which will expose Poland to even greater danger. The authors of the proposed amendment do not take into account that the security of the state - apart from the military and humanitarian aspects - also has an economic side, which directly affects the situation of Polish companies and families.
Ensuring Poland's economic security is a key to mitigate the crisis caused by Russia's attack on Ukraine. A country with a stable economy is able to increase its military potential more easily and respond better to the effects of an invasion on its territory. That is why, from the Polish perspective, it is crucial to maintain stable and transparent public finances, respect the rule of law and build a strong position in NATO and the European Union. The benefits of EU are not limited to transfers under the Reconstruction Fund and Structural Funds, but result primarily from the four freedoms - movement of goods, services, capital and people.
After almost 300 days of attack on Ukraine's independence, leaders should finally notice that Poland's security is not only about tanks and cannons.
Contact to author:
Sławomir Dudek PhD, President & Chief Economist
[email protected]
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