PiS wants to distribute Poles’ savings. PLN 3.6 trillion for new technologies

The new report was prepared by the Work Team for Poland of Law and Justice, according to Mateusz Morawiecki, “the most substantive opposition party”. The report: “Powered by Poland. Strategy for a modern economy” is a proposal that is intended to help fight growing competition, technological race, high energy costs that weaken the industry, too slow administrative procedures and the public procurement system that often strengthens foreign concerns instead of Polish companies.

The first pillar of the proposal, perhaps the most controversial, is the mobilization of enormous Polish capital. According to the former Prime Minister, Poles have over PLN 3.6 trillion in private savings, but too little of these funds is used in the economy. The strategy assumes strong tax and investment incentives to direct private capital to technology, exports, robotization and industrial development.

The document lists the following legal instruments:

• Box+ – 4% CIT/PIT for 5 years for new technologies, AI, patents and solutions developed and registered in Poland. Intellectual property is to stay in the country.
• 200% super-relief for robotization, automation and AI – double deduction of implementation costs, hardware, software and training.
• Extended R&D relief also covering prototypes, pilots and industrial implementations.
• Reimbursement for startups (up to 40% of R&D costs quarterly) – improving the liquidity of young technology companies.
• Discounts for hiring technological talents and incentives for returning specialists.
• Repayable investment reliefs related to the effects: increase in exports, new jobs, increase in Polish added value.
• State guarantee system for high-risk projects in strategic sectors.

Public procurement is to be used to build Polish companies, energy is to be obtained from nuclear power and energy reform, administrative decisions are to be accelerated according to the principle of “tacit consent” and digitization of processes, the state is to support AI, military, material and semiconductor projects, and defense as such is to be the driving force of technological development. Although the report’s argument is to use PLN 3.6 trillion in savings, the authors argue that this will not be a handout.

We are not lawyers to fully analyze Mateusz Morawiecki’s ideas, but it is noteworthy that the strategy assumes simultaneous, massive cuts in tax revenues for the state budget, such as the introduction of IP Box+ at the level of 4%, 200% super-relief for AI implementation, or reducing distribution costs and VAT on energy. On the other hand, the program demands the generation of astronomical expenses: maintaining 5% of GDP for armaments, guaranteeing energy prices by the state at PLN 250-300/MWh and paying non-refundable cash grants to investors.

The document ignores the fact that under the conditions of the EU excessive deficit procedure (EDP), the implementation of such an expansionary policy in both directions at once may strongly destabilize Polish public finances.