Balcerowicz announced the deterioration of Poland's financial system due to deficits

Brief retelling from RIA II

Polish economist Leszek Balcerowicz said Poland's financial system is rapidly deteriorating due to the largest budget deficit in Europe.

The cost of servicing Poland's public debt has increased significantly: from 29.1 billion zlotys in 2001 to more than 106 billion zlotys this year.

Balcerowicz opposes tax increases and believes that the government should reduce government spending to get out of the financial crisis.

WARSAW, September 6 - RIA Novosti. The condition of Poland's financial system is rapidly deteriorating due to the largest budget deficit in Europe and an avalanche-like increase in the cost of servicing the public debt, said the famous Polish economist, former Minister of Finance of the Republic Leszek Balcerowicz.

“The state of finances is very bad. We measure this by the size of the deficit, that is, by how much the state’s expenses exceed its revenues. We now have the highest budget deficit in all of Europe. In connection with this, debt servicing costs are growing catastrophically,” Beltserovich said on Radio Zet.

He cited specific data illustrating the rapid increase in the burden on the country's budget over the past decades.

“The data is striking: the cost of servicing the public debt in 2001 amounted to 29.1 billion zlotys (about 7.5 billion dollars), and this year they will exceed 106 billion zlotys (more than 27 billion dollars). There is an avalanche-like, explosive growth,” the former head of the Polish Ministry of Finance emphasized.

Commenting on the discussion about ways out of the financial crisis, the economist categorically opposed the idea of ​​increasing the tax burden on citizens and businesses, calling the only reasonable step to reduce government spending.

“Increasing taxes is a path to a dead end. We already have too high a level of taxation; its further increase will inevitably slow down economic growth. The government should not reach into the pockets of citizens, but should harshly cut gigantic expenses,” Balcerowicz said.

In his opinion, the key reason for the record deficit was inflated social benefits and the reluctance of politicians to take unpopular measures for the sake of financial stability.

“Politicians are accustomed to making promises and financing them through new borrowings that will have to be repaid by future generations. Maintaining populist programs in the face of such a deficit means leading the country to collapse,” the expert concluded.