In this installment of the TransferGo Blog’s regular Polish updates we look at a new status, the continuing judicial reform controversy and a protest by doctors.
Poland reaches new financial status
For some time the strength of Poland’s economy has been a major contributor to the influx of workers and businesses. Last week FTSE Russell upgraded Poland from an “emerging” market to a “developed” market. The designation takes effect in September 2018.
Poland is the first Central and Eastern European economy to receive such upgrade from FTSE Russell. The upgrade means that Poland joins Germany, the US, France, Australia, Japan and others as one of the “25 most developed economies in the world.”
In a prepared statement, Warsaw Stock Exchange CEO Marek Dietl said that the upgrade “represents an acknowledgement of the progress of the Polish economy” as well as the strength of the country’s capital market.
In what can be interpreted as another sign of the strength of the Polish economy, remittances by foreigner workers based in Poland to their home countries increase by 62% from a year ago to a total of €4.3 billion.
Doctors stage hunger strikes over wages
Young doctors are staging a protest over their wages, stating that it is difficult to make ends meet on their current salaries. The doctors are also protesting supposedly inadequate health care funding, medical staff shortages and working conditions.
At a press conference Health Minister Konstanty Radziwiłł called the doctor’s expectations “unrealistic”.
He went on to add that “it is important to say this clearly: expectations of double the average national wage for young doctors are simply unrealistic.”
New retirement ages go into effect
The minimum retirement age for Polish workers has been reduced from 67 to 60 for women and 65 for men. The new law went into effect on the 1st of October.
According to a just completed study, 54% of Polish people plan to continue working after reaching retirement age, with many stating that the ability to earn more money was the main reason for continuing to work.
The Social Insurance Institution (ZUS) says they predict 311,000 workers may retire by year’s end.
Judicial reform process continues
The saga that is judicial reform in Poland continues to unfold and develop.
In July three bills were passed dealing with judicial reform. President Duda vetoed two of the bills but approved of the third, which gave the government the right to name the heads of lower courts. The bill was met by street protests and drew objection from the European Council, which has threatened various sanctions unless changes are made.
Last week the President announced a constitutional amendment, which would allow top judges to be appointed by parliament and the president, but which gave the president the final say. Hours later after meeting with MPs from various parties (all critical of the proposal) President Duda withdrew the proposal noting it would not pass.
The TransferGo Polish update articles are just one of a number of regular features found in our blog. These include regular Brexit and India updates and our Living Abroad and Doing Business With Series. TransferGo not only seeks to provide our personal and business clients with low-cost, fixed-rate money transfers but to also provide information that includes fun activities, how-to documents as well as other resources.