Poland's President wants no tax increases; PM focuses on investments and secure budget (wrap)

President Karol Nawrocki, opening Wednesday's Cabinet Council meeting at the Presidential Palace, asked Prime Minister Donald Tusk and ministers to update their election programmes in order to create a joint roadmap of legislative priorities. He emphasised the need to eliminate the impression of chaos in cooperation.

"I believe that we will be able to build a kind of roadmap of solutions for things that are important to us, directions for action on the most important issues," said Nawrocki, asking Prime Minister Tusk and government ministers to update their commitments and action programmes for the coming years.

The President also stressed that it is necessary to eliminate the impression of chaos in cooperation between the President and the government. He recalled that since February 2025, including during the election campaign, all circles in Poland have supported solutions providing for the transfer of the 800+ benefit exclusively to working Ukrainians. He expressed his conviction that this was not only his programme as president, but also a proposal supported by Prime Minister Donald Tusk and his political circle.

Poland's President upheld his earlier announcements, indicating that he would not agree to tax increases.

"I am concerned about what I see in this year's budget data. When we know that we have a PLN 150 billion deficit, it is a clear warning sign that something is wrong," Nawrocki said.

"I hear about the government's proposals to increase six taxes. I consistently believe that raising taxes is something I will not accept as President of Poland. I believe that more effort is needed on the part of the government to tighten up the tax system and take care of public finances," he added.

President Karol Nawrocki also expressed concern about the pace of strategic investments.

"The Central Communication Port [Poland's central transportation hub CPK - MI ed.] project is a year and a half behind schedule, even though its scope has been significantly reduced (...)," he pointed out.

"The delays associated with the construction of the nuclear power plant are even longer. If this is not the case, then I certainly hope that it will be raised during the meeting," he added.

During the meeting, Nawrocki indicated that he would encourage the Prime Minister and ministers to jointly build a blocking minority in the Council of the European Union to stop the agreement between the EU and the Southern Common Market (Mercosur). The President called this agreement "the end of the Polish poultry, beef and grain production market".

"I would like to encourage the Prime Minister and all ministers, and declare that I am ready to build a blocking minority in the Council of the European Union to stop the agreement between the European Union and the Mercosur countries," the President said.

During the part of the Cabinet meeting at the Presidential Palace that was open to the media, Prime Minister Donald Tusk also took the floor, emphasising the strength of the Polish economy and low inflation.

"Today, we have one of the lowest inflation rates, currently at 3 percent, and we have reasons to remain optimistic that inflation will continue to fall. This is something that people feel every day, in every Polish family's wallet," said Tusk.

The Prime Minister also pointed to solid economic growth and low unemployment.

He continued that, despite budgetary constraints, the government is committed to ambitious development projects.

Donald Tusk also announced that next year the government will spend almost PLN 200 billion (EUR 46.9 bln) on security and defence. He stressed that the government is careful not to exceed the risk, for example, in terms of the budget deficit.

"I do not need to inform you, Mr President, about this colossal difference in spending on national defence, security, including the security of citizens in the country, and the security of the Polish border compared to our predecessors," Tusk said, addressing President Nawrocki.

"Next year, we will spend almost PLN 200 billion on security and defence. Almost PLN 200 billion," he added.

Referring to the Mercosur agreement, Prime Minister Donald Tusk said that work is underway to introduce a mechanism for partial blocking or adjustment if the agreement poses a threat to European markets. The Prime Minister pointed out that France is the only partner willing to try to adjust the Mercosur arrangements.

"We are also working on introducing a mechanism – as was the case with the risks associated with opening up to Ukraine in terms of the single market – (...) which should enable partial blocking or adjustment when threats to European markets arise," he added.

Tusk pointed out that if there had been a willingness to build a political blockade, i.e. a sufficient group of countries ready to block Mercosur, it would have been done long ago.

Referring to investments, Prime Minister Tusk said, among other things, that the Ministry of Infrastructure's investment expenditure had increased by 100 percent in two years – from less than PLN 50 billion (EUR 11.7 bln) to approximately PLN 100 billion (EUR 23.4 bln) in 2026.

The head of Poland's government also criticised the presidential draft of Poland's central transportation hub CPK project for limiting the speed of high-speed trains to 250 km/h, pointing out that the government's draft envisages 350 km/h, which would make Polish railways the fastest in Europe.

Tusk also referred to the president's announcement that he would not agree to tax increases.

"I can understand the political advantage of such slogans, that the president will not allow any social group to be burdened with additional levies. This is also close to my heart. However, I never expected that the president's social sensitivity and compassion would extend to banks, which are making record profits," said Tusk, referring to the government's plans to tax the financial sector.

"It would be worth sharing some of this money. Precisely for the people, for Poles. I hope that the President will reconsider and withdraw his veto," he added.

Prime Minister Donald Tusk also announced that despite the President's veto of the amendment to the law on investments in wind farms, the government will radically increase the capacity of onshore wind farms.

"We will increase the capacity of onshore wind farms anyway, and radically so. Not because we are fans of wind turbines, but because it is currently the cheapest and fastest source of electricity to implement," he stressed.

"Wind farms will be built, and we will find, we have found ways to intensify our activities here by means of a regulation, so a veto may not be very effective here," he added.

Poland's Prime Minister also referred to the president's veto of the bill on extending the aid to Ukrainian citizens.

"As for Ukrainians, 800 plus for workers or taxpayers, you know very well, Mr President, that the draft law on this issue is practically ready. And that the law you vetoed will have various unpleasant consequences. We will not argue, because we have no intention of arguing, because we ourselves proposed changes regarding the payment of 800 plus. And the elimination of abuses that arose thanks to the careless policies of our predecessors," said Tusk.

"We introduced real control, and we proposed the real enforcement of Polish interests in relation to migrants, including our guests from Ukraine. But vetoing a bill that regulated many more issues could, of course, be devastating for Polish companies, for example. I propose that we cooperate as quickly as possible, Mr President, to minimise the negative effects of your veto on this issue and to ensure that they do not affect the Polish economy and Polish companies," he added.

The Cabinet Council meeting is being held at the Presidential Palace with the participation of Prime Minister Donald Tusk and his government ministers.

The topics of discussion will include the state of public finances, development investments, including the construction of Poland's central transportation hub CPK and nuclear power plants, as well as the protection of Polish agriculture.

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