ZPP Newsletter
Warsaw, 23rd December2020
The Union of Entrepreneurs and Employers demands the economy to be unlocked
The Union of Entrepreneurs and Employers is critical of the introduction of the next stage of shutting down the economy. The Union calls for actions aimed at the unlocking of all closed sectors, the implementation of educational activities aimed at citizens and entrepreneurs, as well as the enforcement of the sanitary regime in the DDM standard and epidemic guidelines for all industries.
We have observed that the solutions to be introduced [by means of the Regulation of the Council of Ministers on the establishment of certain restrictions, orders and bans in connection with the epidemic, draft act of 21st December 2020 (RD275)] constitute the next stage of a creeping lockdown of the economy.
The fourth quarter of the epidemic has begun. There is no indication that the number of new cases as well as the burden on the healthcare system will be reduced on a weekly basis as a result of vaccination. We must adapt our actions to the situation in which the coronavirus will be a significant phenomenon from the point of view of state management in the months to come. Unfortunately, the answer to this problem must not be to close subsequent sectors of the economy with relative passivity in the remaining scope. The lockdown of the economy must not be the main instrument in the fight against the coronavirus. We must not at this point refer to the practices of the so-called West, where the capital generated over the past decades is and will be the “safety cushion” for developed economies. We must have the courage to face the facts. After a year of empirical experience on a global scale, there is no clear evidence that lockdowns are an effective instrument to fight the epidemic. They usually impact the state of affairs, but that impact is not a decisive factor. Essential in this case are the following: models of social interaction and behaviour, compliance with sanitary standards (distance, disinfection, mask), a society’s demographic structure, and cohesive communication from those responsible for crisis management.
The Union of Entrepreneurs and Employers draws attention to the inconsistency of government actions in the field of communication, transparency, and predictability of decisions. While we have full understanding of the dynamically changing epidemic situation and preventive actions, we are extremely critical of the inconsistency of the decisions made with planned decisions presented earlier. The government announced on 4th November 2020 that when the average of seven days of illness exceeded 27,000 new cases on a national scale, a national quarantine would be implemented, including restrictions on movement. There is also a graphic showing clearly the thresholds of the safety regulations. We assessed positively the presented “road map”, recognising that it generated the basic predictability of decisions to be taken. However, a few weeks later, the so-called national quarantine was in fact introduced, while the level of cases over that last 7 days prior to the announcement suggested rather lifting the restrictions in line with the previously communicated strategy. We are concerned that the inconsistency between decisions taken and those communicated may diminish the government’s credibility in terms of anti-epidemic activities. This is particularly important in the period when one of the key short-term policy goals should be, amongst other, to persuade as many people as possible to get vaccinated.
Regardless of the above, we negatively evaluate the introduction of lockdowns in subsequent industries. The closure of shopping malls, swimming pools, aquaparks, gyms, clubs and fitness centres, entertainment and recreational activities or ski slopes will have a measurable impact on the economic and social situation of thousands of Poles, and consequently the economic recession in the coming quarters. Furthermore, the total lockdown of hotels will not only affect this industry itself, but also hamper operations of all industries that require business travel – the production sector in particular. While we understand the concerns related to a possible third wave of the epidemic, as well as those regarding the reports of new mutations of the virus, we consistently point to the lack of proper, evidence-based justifications for introducing restrictions in other industries. Therefore, it is difficult to understand both the sectoral scope of the proposed restrictions and their details (for example, the key to selecting the types of shops that can be open in shopping centres remains a mystery; or the shutdown of “retail islands” in shopping centres located in open spaces such as passageways). The procedure for announcing the latest regulation also deserves criticism – although it appeared in advance, it was not decided to subject its content to consultation with representative organisations.
We would like to draw your attention once again to the critical situation in the food catering industry, which was significantly affected by the lockdown in the spring. Currently, it has been closed for months, with no prospects of a change in their situation. The government also has not presented any future aid plan not only for this industry, but also for other closed ones after the lifting of the restrictions. We consistently call for the introduction of a uniform VAT rate of 5% for the entire food catering industry and for the introduction of similar discounts for other sectors whose operations are now limited. Such solutions would be a real help at the stage of unlocking the economy and would constitute a beneficial solution that the government could introduce for businesses after the epidemic.
At the same time, the Union of Entrepreneurs and Employers once again calls for the introduction of solutions in the field of e-commerce to compensate for the lack or limitation of sales in traditional channels. This would enable consumers to purchase certain products without having to physically go to stores, which is of considerable importance taking into account the epidemic. In this context, it would be reasonable, for example, to allow remote sales of those categories of goods which at the moment cannot legally be sold this way. In particular, it concerns low-percentage alcohol (wine, beer, ciders), prescription drugs or tobacco products, as well as novelty and electronic cigarettes. These solutions seem to be justified in the context of the introduced restrictions in movement, as well as the goal of limiting the mobility of citizens, assumed by the government. So far, however, only restrictive solutions have been set to achieve this goal.
To sum up, in our appeals to date, the Union of Entrepreneurs and Employers has emphasised the lack of predictability in the actions undertaken by the legislators and regulatory uncertainty. They are particularly pronounced during the ongoing crisis, and the actions announced in recent days are a clear example of this. This will result in limiting the risk of making business decisions (including investments). A 12-month-long moratorium on any new burdens for workers and entrepreneurs is necessary. We also call for a direction to be determined in terms of comprehensive law simplification and deregulation. These and other necessary actions were presented by the Union of Entrepreneurs and Employers in the Union’s postulate as part of the planned social pact on 17th November 2020.
The introduction of further restrictions will be less and less effective. The law must not be on a collision course with economic practices, reality, and society’s expectations. Such a strategy of fighting the epidemic already causes growing resistance amongst citizens and entrepreneurs. Presently, Poles are learning anew, just like under the socialist regime, how to circumvent laws that are too rigorous and do not correspond to reality.
See: 23.12.2020 The Union of Entrepreneurs and Employers demands the economy to be unlocked
Fot. Corona Borealis / Adobe Stock
