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The European Union at 50<br />

Graph 7.1: unemployment <strong>in</strong> Poland - total outflows and outflows to work, 1990-<br />

1995<br />

(v) youth unemployment rema<strong>in</strong>s very high and is <strong>in</strong> fact over 30%<br />

(vi) 280000 persons are totally discouraged from look<strong>in</strong>g for any k<strong>in</strong>d of work, a<br />

trend which is exacerbated by <strong>the</strong> ever more str<strong>in</strong>gent requirements to receive<br />

unemployment benefits<br />

(vii) hidden unemployment on <strong>the</strong> farms also amounts to a large number of<br />

affected people, <strong>in</strong> all 450000 to 690000 persons<br />

(viii) both <strong>the</strong> Solidarity era and <strong>the</strong> post-communist governments are<br />

characterized by <strong>the</strong> 'equally marked absence' of a 'determ<strong>in</strong>ed political will to<br />

reconstruct <strong>the</strong> social security system' (UNDP, 1996) social <strong>in</strong>surance benefits<br />

paid from <strong>the</strong> national budget consume now 1/6 of <strong>the</strong> total GDP. All three<br />

reform attempts - <strong>the</strong> one by <strong>the</strong> Senate <strong>in</strong> 1992 and 1993, <strong>the</strong> one by <strong>the</strong><br />

M<strong>in</strong>istry of Labor between 1992 and 1993, and <strong>the</strong> M<strong>in</strong>istry of F<strong>in</strong>ance Reform<br />

Project 1995 as yet did not become law, while <strong>the</strong> f<strong>in</strong>ancial pressure on <strong>the</strong> state<br />

will <strong>in</strong>crease with <strong>the</strong> upcom<strong>in</strong>g changes <strong>in</strong> <strong>the</strong> age structure. With average<br />

pensions amount<strong>in</strong>g to 75% of <strong>the</strong> average wage, <strong>the</strong> proposal of <strong>the</strong> M<strong>in</strong>istry of<br />

Labor to negotiate pension rises at <strong>the</strong> level <strong>in</strong> between pay rises (maximum)<br />

and price <strong>in</strong>creases (m<strong>in</strong>imum) does not sound conv<strong>in</strong>c<strong>in</strong>g; ra<strong>the</strong>r, f<strong>in</strong>ance<br />

M<strong>in</strong>ister Kolodko's proposal oriented on price <strong>in</strong>creases sounded more logical.<br />

Accord<strong>in</strong>g to <strong>the</strong>ir own experts, <strong>the</strong> M<strong>in</strong>istry of Labor estimates that by 2000, <strong>in</strong><br />

order to avoid a f<strong>in</strong>ancial breakdown, <strong>the</strong> social security contribution level (paid<br />

<strong>in</strong> Poland exclusively by employers) should amount to 62.5% of gross wages, if<br />

Entelequia. Revista Interdiscipl<strong>in</strong>ar · CAEI Arno Tausch / 111

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