The State of Public Finances, Defense Spending, and the Role of Transparency – Key Topics for the Institute of Public Finance at the 2025 Economic Forum
The condition of public finances, defense spending, and the role of transparency were the key themes brought to Karpacz by the Institute of Public Finance. The 2025 Economic Forum was not only an opportunity for us to join the debate, but also to show that it is possible to talk about the budget clearly, boldly, and with a forward-looking perspective.
The Institute of Public Finance’s participation in this year’s Economic Forum in Karpacz began with a strong message. The Business Stage was opened with a speech by Dr. Sławomir Dudek, President of the Institute and Chief Economist at SGH Warsaw School of Economics, titled: “Swedish Spending with a Course Toward Irish Taxes? A Model That Cannot Be Sustained.”
In his address, Dr. Dudek directly pointed to growing fiscal risks. He emphasized that Poland is no longer a “small player” – we are now among the EU leaders in terms of public spending, and long-term forecasts show that without fiscal reforms, we will also rank among the most indebted countries in the EU.
“Poland is no longer a small country – we are a spending powerhouse,” he said. He warned of the “matchstick effect” in social policy – once programs are launched, they are very hard to reverse, and their scale grows faster than the budget’s revenue. He stressed that without clearly identified sources of funding for programs like the 800+ child benefit, maintaining the balance of public finances becomes increasingly unrealistic. He called for an honest conversation about the state’s priorities and the sacrifices that may lie ahead.
Public Finances in the Shadow of War – The Voice of a New Generation
The discussion on public finances continued during the panel “Budget in the Shadow of War – Fiscal Policy in CEE Countries,” moderated by Wojciech Decewicz – junior analyst affiliated with the Institute and winner of the first edition of the IFP’s competition for best thesis.
The panel also featured Dr. Sławomir Dudek and Marcin Zieliński from the Civil Development Forum (FOR). Participants analyzed the impact of increasing defense spending on national budgets in the region and the challenges related to financing them. The panel emphasized the importance of long-term strategies that can combine security with economic development.
Award for Michałowice – A Practical Example of Transparency
During the local government gala, one of the awards was given to Małgorzata Pachecka, mayor of the Michałowice commune. This was a particularly significant moment for us – Michałowice is one of the few municipalities in Poland that maintains an open contract register.
In the context of the ongoing debate about the Central Register of Contracts – which some institutions would like to restrict – this local example shows that full transparency is not only possible, but can function as an everyday standard. Transparency in local government doesn’t have to be a challenge – it can be the norm.
Cooperation with SGH – Education and Analysis Go Hand in Hand
An important part of the Forum was also the presence of the SGH Warsaw School of Economics – a partner of the Institute of Public Finance. In the SGH Zone, discussions focused on topics such as the economic outlook in Central and Eastern Europe and the relationship between politics and business. The panel was led by Dr. Konrad Walczyk – Deputy Director of the SGH Institute of Economic Development and scientific project leader at IFP.
Cooperation with experts is a permanent part of the Institute’s activity – and this was clearly evident in Karpacz. Joint initiatives with universities and civic organizations are not just an investment in the future, but a concrete response to today’s challenges.
Public Finances Need Truth, Not Illusions
The 2025 Economic Forum confirmed that, in economic matters, we now need more courage, honest analysis, and collaboration. The mission of the Institute of Public Finance is not only to diagnose but also to create space for substantive dialogue. And that space – in Karpacz – was certainly there.
