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IN THE SPOTLIGHT: JAN ROKITA
Warsaw Business Journal ^ | 7th March 2005

Posted on 03/08/2005 2:32:35 AM PST by twinself

The chairman of the most popular party, Civic Platform (PO), and best guess for Poland's next Prime Minister, Jan Rokita has begun to paint a picture of what a government under his leadership would look like-and what he's saying has caught the ear of the business community.

Until recently, Rokita was known as the man who coined the unfortunate "Nice or death" slogan, which embodied his controversial hard-line approach to EU negotiations. At the same time, PO has been accused of abandoning its stated pro-market economy values and drifting leftwards.

Last week, the potential PM answered that criticism by setting out his business agenda, revealing that some 100 specialists are designing a plan describing "how PO sees the economy." While markets were pleased with his plans to make long-awaited fiscal reforms, deregulation and privatization the core goals of his administration, analysts criticized his "euroization" plan for the z³oty, which would peg the currency to the euro even before Poland joins ERM2-the last step before joining the eurozone. They believe that there are no economic reasons for this move, which the EU would, in any case, likely reject.

A prime example of the opposition to communism found in Kraków's intellectual circles, Jan Rokita has been described as Poland's only politician in both calling and profession. Though his style has rankled some in his own party, many hope that under his strict leadership the government will become more disciplined, coherent and effective. B.K.


TOPICS: Foreign Affairs; Government; News/Current Events; Politics/Elections
KEYWORDS: civicplatform; government; po; poland; polish; reforms; rokita

1 posted on 03/08/2005 2:32:36 AM PST by twinself
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To: Lukasz; lizol; Grzegorz 246; franksolich; Atlantic Bridge; Spirited; lawgirl; ms_68

Most probable new Polish PM on his way. Ping guys.


2 posted on 03/08/2005 2:37:54 AM PST by twinself
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To: twinself
"..."euroization" plan for the z³oty, which would peg the currency to the euro even before Poland joins ERM2-the last step before joining the eurozone."

It's rather not a good idea.
3 posted on 03/08/2005 2:43:09 AM PST by Grzegorz 246
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To: Grzegorz 246

Yeah, right - I don't think linking zloty with euro would be a good idea. Not before all the reforms we'll have to go through anyway. Look what happened in Argentine... Pressure on prices increase would most likely appear, too. All in all, I would say NO to euro in any form just now.


4 posted on 03/08/2005 2:52:12 AM PST by twinself
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To: twinself

It probably isn't firmly decided yet, but speculatively, when is Poland supposed to join the "euro" zone.

Bad idea, because while the "eruo" is up, well.....check with me in two years, five years, to look for it.


5 posted on 03/08/2005 3:02:54 AM PST by franksolich (ask me for the links to ALL of the famous P.J.'s DUmmie FUnnies)
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To: franksolich

"Official" target date given by the government is 2009.

To secure our internal interest we have to be VERY careful on this issue. Credits in Poland are relatively expensive while debt households factor is low when compared to EU average. In result there's a pressure of foreign owned bank sector on our Central Bank to either decrease interest rates or to introduce other mechanism allowing bigger credit action in the years to come. So here is one example of it. In my opinion first solution plus necessary reforms in administration, social security and health sector would solve the problem better.


6 posted on 03/08/2005 3:14:45 AM PST by twinself
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To: twinself

So I take it the Poles don't borrow so much money--which might be because of (a) the Poles don't like to live on borrowed money or (b) the "cost" of money (interest rates) is too high.

And so perhaps the old men in Paris, Brussels, and Berlin sitting at the table of bankers, wish interest rates in Poland to be lower, so the Poles would be pulled into the crippling habit of living on borrowed money--money from Paris, Brussels, and Berlin?

In America, this is called the "bait and switch," where something is advertised at a low price, but then when one shows up to purchase it, he is told no, we're all out of it, but how about this.....and then shown something much more expensive, and not worth the additional money.

I suspect the old men in Paris, Brussels, and Berlin wish to offer Poles, for example, 4% interest (or whatever low number), and once the Poles get addicted to living on credit, the old men in Paris, Brussels, and Berlin will raise the interest-rate to 12% or 18% or something?

We have a lot of "experience" with this in America, and it is a "drag" on the American economy. Yeah, sure, the American economy is okay and everything at the moment, but it could be better.


7 posted on 03/08/2005 3:21:10 AM PST by franksolich (ask me for the links to ALL of the famous P.J.'s DUmmie FUnnies)
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To: franksolich
Yeah, that's exactly it.

Living on borrowed money doesn't have to be dangerous as long as you are able to repay it quickly. You are able to repay quickly if you are efficiency competitive, cheap and of excellent quality in other words you are able to sell everything what you produce. And if your economy is weak or you cannot sell cheap enough (like now in Poland because of expensive zloty) you simply cannot make it and fall into the trap Argentine fell into. It was not buisness for them to export anything anymore - dollar was so cheap they could buy it from any place! Import goods and credit servicing cost just drowned their economy.

Recent zloty's appreciation is a play of Euro speculative capital against Polish exports.
8 posted on 03/08/2005 3:40:41 AM PST by twinself
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To: twinself

Thank you, sir; apparently I get it.

I wish Americans would be as discreet about living on borrowed money, as the Poles.

Despite the yimmerings and yammerings of the bankers, the credit card industry, and the retailers, no, our living on unlimited credit does not "boost" the American economy, and ruins millions of individual Americans.


9 posted on 03/08/2005 4:01:54 AM PST by franksolich (ask me for the links to ALL of the famous P.J.'s DUmmie FUnnies)
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To: franksolich
There are differences though. Huge American internal market makes it, thanks to which your economy is more or less independent of any other. Banking sector is mostly American companies owned too (or at least we would like to believe that Japanese or Saudis didn't manage to buy it yet). Not to mention distinctive American's society's features like: mobility, self-dependence, competitiveness that decades of communism almost killed in Poland.

I don't if there are economies and societies so much different as American and Polish ones are. Your economy has been thriving for years while ours had been ruined for years. Our best people - freedom fighters, businessmen, private owners and scientists were either pushed into shadow or physically exterminated for the most of past century. For one whole century back Poland was not existing. The only thing you Americans and we Poles have in common is our inbred love for freedom (independence of the state) and a proud history that reminds us that greatness is our destiny. One against all...that's how it always been.

As far as credits are concerned... It's all about how you deal with money. As we all know various things can be done with it. It can be eaten, lost, saved, spent (turned into goods or services) or ...invested. You could pay your college with it and then sell your skills to repay it or you could with certain abilities make even more money by investing it in your own business or someone elses businesses. Credit is not necessarily a bad thing. Consumer credit is a bad thing. It is a temporary pleasure that costs you a helluva money in the future. Unfortunately there are things in this world that don't come cheap - pleasure is one of them.
10 posted on 03/08/2005 5:18:44 AM PST by twinself
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