Financial Security in a New Geopolitical Reality. Key Elements Are: Trust, Education, and Investments

“I understand the system of state finances in two ways: as the banking system, for one, but also as revenues, public spending from the state budget or local governments and a suitable level of public debt. In 2013, public debt was at 58 percent of GDP; in 2020, it reached 41-42 percent. A lot has changed in eight years. Since 2015, the government I represent has been very firmly putting the state’s finances in order, including by closing tax gaps such as the VAT gap. Our unemployment rate is among the lowest in Europe. A safe level of debt allows for bond sales. Bonds based on inflation indicators increase the sense of security of consumers. Consequently, citizens are financially secure, benefiting from solutions such as the Asset Guarantee Fund (Majątkowy Fundusz Gwarancyjny), among others”.

What are the most important threats to the stability of the financial system at this time, and how can they be prevented?

Leszek Skiba, CEO of Bank Pekao SA:

“The threat is the risk of losing financial security, of which public finances are a pillar. For the time being, this threat is not present, but there are questions about the global recession, inflation, energy prices, a potential war in Asia or the impact of war in the East. A German economic recession affects Polish exports. The only threats we see are those from abroad. Financial security for Poland today is to have its own currency. The State Treasury’s share in ownership of the banking sector is also a pillar of security”.

Economic and monetary sovereignty is a prerequisite for financial security. Does this also apply to technology?

Maciej Brzozowski, Vice-President of PKO Bank Polski:

“Yes. The financial system is a set of interconnected elements. Financial security is reinforced by technological development based on our input, solutions, and knowledge. PKO Bank Polski intensively participates in and supports solutions from public administrations. We were the first to implement the mObywatel application (mCitizen)”.

Do we have a chance to become the financial centre of Central and Eastern Europe and convince individual investors that the capital market and stock market are safe alternatives for savings?

Marek Dietl, CEO of Warsaw Stock Exchange:

“We are a financial centre for the region in terms of the capital market. There is a need to move beyond technology suppliers (Germany, USA). We have spent a total of 8 percent of GDP on aid to Ukraine and armaments, shifting into war economy mode. At the same time, in order not to lose the economic growth momentum, we need to focus on industrial development, increase spending on innovation and popularise various forms of defence, e.g. forming citizen armies. One global phenomenon related to convincing people about this safety is passive investing, such as ETFs. If you look at historical data, these capital markets are growing faster than inflation and economic growth”.

Will sticking to the zloty affect Poland’s financial security?

Prof. Stanisław Mazur, Rector of Cracow University of Economics:

“The advantages of the eurozone are obvious, but it strips the NBP of its sovereignty in guiding economic policy. If we are to meet the convergence criteria, we should start preparing to join the eurozone”.

How can it be explained to Poles that stable state finances guarantee their security?

Henryk Kowalczyk, former Deputy Prime Minister, minister, and Member of the Council of Ministers:

“Macrofinance has a huge impact on people’s sense of financial security. In times of pandemics and war, there was a great need for cash – and money was available in ATMs. We know what inflation is and we don’t want our money to lose value, hence the popularity of Treasury bonds. Last year, individual consumers invested approximately PLN 57 billion in bonds. For the consumers, financial stability also means stable income, low unemployment, and social benefits. The key factor is confidence in the banking system, which is very high in Poland”.