LEAD: Tusk: Poland to make "unpopular reforms" to bolster EU position

Nov 18, 2011, 13:03 GMT

Warsaw - Poland wants a strong position in the European Union and will take 'unpopular' steps like raising the retirement age to protect itself from the eurozone crisis, Prime Minister Donald Tusk told parliament Friday after a swearing-in ceremony for his new cabinet.

'Poland's real dilemma is how to be ... a main player on the European scene,' Tusk told parliament, 'and not how to be on the margins because of the crisis.'

Tusk said 'unpopular actions' were needed that would require 'sacrifices' from everyone to get Poland safely through 2012 and to guarantee stable growth and economic security.

Poland would raise its retirement age to 67 years, from the current 65 years for men and 60 years for women, Tusk said. Starting from 2013, retirement age would be raised every four months by one month for both men and women, Tusk said.

'Well-off' families with one child who earn more than 85,000 zloty a year (25,900 dollars) would no longer get child benefits, Tusk said. Benefits would be raised for everyone by 50 per cent, however, for every third child onwards.

Tusk's government faces challenges as it eyes the painful reforms to reduce its public debt. The country's public debt, which stood at 52.8 per cent of gross domestic product (GDP) last year, must stay below 55 per cent to avoid mandatory austerity measures.

Tusk said that debt would fall to 52 per cent at the end of next year, and to 47 per cent at the end of 2015.

'We promise all our countrymen to work very hard, make courageous decisions and be ready to take on the biggest challenges that stand before us,' Tusk said. The next four years would be ones of the 'highest test.'

Tusk also laid out plans to cut bureaucracy and regulations that he said hindered business. Government would shorten the waiting time for building permits for big investments, and speed up litigation in the court system.

President Bronislaw Komorowski had earlier named Tusk as prime minister and handed him a token gift - a 'Polska' scarf in the red and white colors of the national flag.

Tusk's speech in parliament came after a ceremony in which 19 ministers were sworn in.

Eleven ministers are new to their jobs, while eight were carried over from the previous administration. Holdovers include Foreign Minister Radoslaw Sikorski and Finance Minister Jacek Rostowski.

Politicians in Poland and the EU have praised Rostowski for helping Poland avoid recession in 2009.

Tusk's speech was to be followed by a six-hour debate in parliament, and then questions to the premier from lawmakers. The session was expected to end around midnight.

Tusk would answer questions from lawmakers on Saturday, and then ask for a vote of confidence in parliament.

Tusk's centre-right Civic Platform won last month's parliamentary elections, and was to continue its coalition with the agrarian Polish People's Party.