Chapter 4: Election results, Transition to mixed economy and fiscal crisis (12th of May 1960 - 1st of January 1965)
Part one, 12th of May 1960 - 28th of October 1960
Please ignore description of the event. It's old one brought by simsulla from different mod and he haven't changed it yet.
Newly liberated Poland got renoval of nationalistic sentiments. Following common demand, at 12th of May PZPR government decided to restore claim to pre-war Polish territories of Western Ukraine, Western Belarus and Vilnius region. It was just a claim, but angering population in middle of the first elections wasn't definetely party's goal.
The party's political attidute changed slightly, with introducing concept of secularized state instead of atheist one and allowing for so-called State Capitalism - or Etatism, as it's also known - meaning that while the economy would be still state-controlled, the private initiatives would be encouraged to open private enterprices in Poland. This new "socialism with Polish characteristics" became new official direction of PZPR party. The party also decided to expand social childcare program for young Poles.
Apologies for lack of screenshot about that, as it wasn't properly memorized by the Steam.
Soon after, the new worker's comittee which was legally opened in state-run labour union demanded from government to make one day in year free from work. It wasn't very popular among foreign capitalists and local enterprice owners, but the government approved it easily due to low real cost.
There was an ongoing debate about state of national military. Having only military reserve, small staff and no regular forces, the military representatives demanded from government to invest in military much more than current level. The PZPR however decided to follow balanced approach rather than jingoistic one.
Yet, the pacifist movement wasn't very happy about that.
In June however nationalistic sentiments grew to dangerous level. The war with Albania, although being ignored by the PZPR, became major topic of first Polish elections and noone in party and electorate was really sure what to do about it.
Free trade concept became also important in Polish elections. The party decided to slightly promote it, despite being protectionist one, due to avoiding anger of overly Free-Trade oriented society.
Severe economic crisis caused by abandonment of Russian sphere aswell as being flooded by foreign exporters meant new economic debate to be opened. Country was in fiscal deficit since begining of the elections and Party proclaimed, that while economic plan is finished and economy will transit into state capitalist one, new economy modernization plans will be introduced when country's economy stabilize. This also meant small cut in taxation with maintaining subsidy system.
Political campaign was in middle of it's state. The PZPR decided to not influence outcome of elections directly, but let people decide themselves instead.
There was also problem with foreign imports which caused problems within polish economy. The capitalist and enterprice owners class started political campaign about introducing more protectionist way of politics. The PZPR, having option between angering one percent of population by supporting free-trade and angering whole rest decided to support free-trade movenement once again.
Poland was still in fiscal crisis and the party, seeing the lack of proper tax system working for polish economy, decided to cut military spending to 10% and introduce state tariffs at 75% aswell. It allowed to temporary stabilize the budget.
At 23rd of October the party officially proclaimed the end of People's Republic. Instead in the polish constitution new state was officially called a democratic one.
By the 28th of October elections finally finished. New political coalition of PZPR-SDRP formed, maintaining now legal rule of the communist party in the country.
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Side note: please ignore issues support calculation caused by Victoria's engine. The system is very basic and it can cause bugs like 105% support for economic policies at all. It's old game afterall.