Prime Minister Donald Tusk of Poland wants to nationalize the people’s private pension funds. Can he be prevented from taking this dreadful step?
In 1999 Poland, like Hungary and other central European countries, moved from a traditional pay-as-you-go (PAYGO) defined-benefit pension system to a defined-contribution system combined with a mandatory retirement-savings plan operated by private pension funds. Unfortunately, Tusk now wants to repeat the mistake Hungary made in 2010, when Prime Minister Victor Orban, nationalized the private funds’ assets. Poland should reject Orban’s flawed vision of economic salvation through government control.