Poland’s social spending beneath EU common and never effectively focused, says European Fee

Poland devotes proportionally much less cash to social programmes than the European Union common and what it does spend “isn’t at all times correctly focused”, leaving probably the most susceptible in danger, says the European Fee in a brand new report.

Nonetheless, the fee additionally notes that the proportion of individuals prone to poverty and social exclusion has been declining in Poland over current years and is among the many lowest within the EU.

Since coming to energy in 2015, Poland’s national-conservative ruling celebration, Legislation and Justice (PiS), has launched quite a lot of new social advantages, aimed particularly at households and pensioners.

However a big portion of those payouts are “common and directed at everybody, independently of the revenue”, relatively than being focused at those that want them most, writes the European Fee. It additionally notes that, since being launched in 2016, baby profit funds have remained on the identical stage regardless of speedy inflation.

In the meantime, total “Poland spends much less on social advantages than different EU international locations”, with its outlay as a proportion of GDP usually being 4 share factors beneath the EU common in recent times.

Nonetheless, the fee notes that Poland “scores effectively on indicators associated to the share of individuals prone to poverty and social exclusion, which have been reducing steadily and stay amongst the bottom within the EU”.

However it warns “trying ahead, dangers are build up” for sure teams, particularly for pensioners – whose numbers are set to double by 2060 – and particularly for girls, who face having decrease pensions after PiS lowered their retirement age to 60 whereas it stands at 65 for males.

“Quick inhabitants ageing, mixed with the low statutory and efficient retirement age, will seemingly lower pension advantages, elevating issues on pension adequacy, particularly for girls,” writes the fee.

The newest launch of information this week from final yr’s nationwide census confirms the extent to which Polish society is shrinking and ageing, with the proportion of the inhabitants over the retirement age rising by greater than 5 share factors in a decade.

Final yr, a report by the European Anti-Poverty Community famous that the proportion of individuals residing in excessive poverty in Poland rose from 4.2% to five% in 2020 amid the pandemic, with specific will increase for youngsters and the aged. Nonetheless, excessive poverty nonetheless stays considerably beneath its peak of seven.4% in 2013 and 2014.

The European Fee additionally raises concern that staff working below some civil legislation contracts don’t have entry to social programmes, resembling unemployment, maternity and invalidity advantages. In-work poverty in Poland stays above the EU common.

The Dziennik Gazeta Prawna each day reported in the present day that one of many so-called “milestones” Poland has agreed with the European Fee as a situation for paying out Covid restoration funds is growing social protections for individuals working below civil legislation contracts.

In its new report, the European Fee additionally notes that the inflow to Poland of individuals fleeing Ukraine will generate “social and healthcare challenges” for Poland, however may also “present a lift to labour provide”.

 

Fundamental picture credit score: Krystian Maj / KPRM (below public area)