POLAND ADOPTS FAMILY ALLOWANCE TO BOOST BIRTH RATE

Poland on Thursday adopted a family allowance designed by the new right-wing government to boost a birth-rate that is among the lowest in the world, but critics insist the new measure will bloat public spending.

The move gives families with at least two children a monthly allowance of 500 zloty (€115, $130) per child. It passed easily through parliament, which is dominated by the governing Law and Justice (PiS) party.

Low-income families with just one child will also be eligible for the allowance, so long as they earn under 800 zloty per month. Payments are due to begin in April.

The measure was part of a string of generous campaign promises which propelled the PiS to win an unprecedented majority in October’s general election.

Around three million Polish families are eligible for the programme, which is estimated to cost 23 billion zloty per year.

It is hoped the measure will boost the birth-rate which stands at just 1.3 children per woman of child-bearing age.

PiS plans to lower the retirement age, tax banks and big-box foreign supermarkets have drawn sharp criticism both at home and abroad with global ratings agencies warning the measures could destabilise public finances and the banking sector and curb growth.

As central Europe’s largest economy, Poland has seen growth each year since it shed communism a quarter century ago.

The economy of 38 million consumers expanded by 3.6 per cent last year and is forecast to grow by 3.8 per cent in 2016.

PUNCH