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Political Risk / Poland

The Complexity Of Social Spending Reform

June 2004 | Political Risk Analysis

The process of fiscal reform in the budgetary domain of social spending in Poland is rendered problematic by the structure of the labour market and unfavourable demographic trends. BMI View: At the core of the problem is the limited number of Poles actively engaged in economic activity, which implies high levels of official transfers for social security purposes and a limited taxation base from which to finance these commitments.

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