Poland to extend 'anti-inflation shield' says PM

"We are at a historic moment, to put up resistance against this brutal force, which destroys the sovereignty of states not only with its politics, with its propaganda," Morawiecki told a press conference at the build-out of a Gas Compression station of the Baltic Pipe gas pipeline project in Goleniów, north-western Poland. Jerzy Muszyński/PAP

The Polish government's 'anti-inflation shield,' which is binding until the end of July, will be extended, the prime minister said on Saturday.

Mateusz Morawiecki said the measures designed to curb the impact of high inflation would be extended because the war against Russian President Vladimir Putin has its costs, felt in higher fuel and gas prices as well as raised prices of other commodities impacting other prices, such as food. "The higher price of grains means higher food prices," he said.

Under the so-called 'anti-inflation shield 2.0,' which came into force in February, VAT was reduced on energy - to zero on gas (changed in January 1 from 23 percent to 8 percent, and from February 1 from 8 percent to 0 percent), to 5 percent on electricity (extending the reduction from 'shield 1.0' from 23 percent to 5 percent), to 5 percent on heat (from January 1, changed from 23 percent to 8 percent and from February 1 from 8 to 5 percent). The shield also provides for a VAT reduction on fertilizers from 8 percent to zero.

Morawiecki said the government was currently working on an "anti-Putin" shield, which according to earlier announcements, will affect those spheres of economic life that are suffering as a result of Russia's invasion of Ukraine.

He went on to say that since Russia's aggression towards Ukraine, the European Union was united and that no one had any illusions any longer as to the criminal nature of Putin's system.

"We are at a historic moment, to put up resistance against this brutal force, which destroys the sovereignty of states not only with its politics, with its propaganda," Morawiecki told a press conference at the build-out of a Gas Compression station of the Baltic Pipe gas pipeline project in Goleniów, north-western Poland. "Today we are seeing in Ukraine that it murders innocent people leading to a massacre of slaughter, bombarding maternity hospitals, murdering children."