During today’s press conference, the Union of Entrepreneurs and Employers assessed the idea of abolishing the 30-fold limit on Social Insurance Institution contributions unequivocally negatively. The Union’s experts also gave examples of alternative actions ensuring the fulfilment of the assumption of finding an additional PLN 5 billion in budget revenues.

The draft budget act for the year 2020 is definitely a historical project. For the first time after 1989, the government proposed a balanced budget, i.e. one in which the sum of revenues is equal to the sum of expenses. The lack of a planned budget deficit is an unprecedented phenomenon that should be assessed definitely positively. Thus far, a deficit amounting to tens of billions of zlotys was an almost certain element of every subsequent state budget. It is admirable, therefore, that with such extensive social policy, the government managed to balance revenues and expenses. This is also important because in the last few years, which were a period of excellent economic situation, subsequent budgets were characterised by relatively small, albeit still deficits.

The last four years were a time of unprecedented development for the Polish economy – largely due to the fantastic economic situation in Europe, but one cannot deny the government certain successes of their own. We positively evaluate the actions undertaken by the Law and Justice government in terms of the economy – these are the basic conclusions from the report of the Union of Entrepreneurs and Employers published today.

The Union of Entrepreneurs and Employers together with Maison & Partners asked Polish entrepreneurs what their evaluation of the government’s individual actions is and how these actions affect their businesses. Entrepreneurs declare that it is the increase in the minimum wage what will among other things impact their businesses the most. At the same time, the government’s actions in this area are among the worst rated. Most importantly, the study was conducted before the ruling party, Law and Justice, made its plans regarding the increase public.

Out of all the postulates that were announced at the party convention of Law and Justice (Prawo i Sprawiedliwość) last Saturday, the announcement to make the amount of social security contributions for entrepreneurs depend on their income raised the biggest concern. This would entail a surge in burdens for an enormous number of entrepreneurs in Poland, including relatively well-paid freelancers and other representatives of the still weak middle class.

The index measuring entrepreneurs’ mood “Busometr” for the second half of 2019 amounted to 48.8 points (a decrease from 55.6 points in the previous half-year), which means that Polish entrepreneurs’ mood is deteriorating. There is still optimistic sentiment in the labour market segment of the index (57.1 points), but we have a complete decline in investments – 35.4. This is the lowest ever result in the history of the survey (since 2011) carried out by the Union of Entrepreneurs and Employers among entrepreneurs from the small and medium-sized enterprises sector.