Brussels commends Poland on deficit reduction

2012-01-12



Poland has taken adequate steps to correct its excessive deficit and bring it below the European Union’s limit of 3% of GDP this year, the European Commission announced on 11 January.
The assessment means Brussels does not see the need for further steps in the excessive deficit procedure for Poland, "though it will continue to monitor budgetary developments closely", the Commission’s statement says. A similar conclusion was reached with respect to Belgium, Cyprus and Malta, whereas Hungary has failed to make sufficient progress, according to the Commission.
The report marks the first time that Brussels has applied the new rules of the strengthened Stability and Growth Pact (SGP), as part of the so-called "six-pack" on economic governance that entered into force on 13 December 2011.
On 10 November 2011 the Commission warned that Poland was at risk of failure to meet its obligations to reduce the deficit, an assessment that has now been official dropped.
The Polish government assumes that the general government deficit will fall to 2.97% of GDP in 2012, from an estimated 5.6% in 2011 (in 2010 the deficit amounted to 7.8% of GDP). Some economists reckon that last year's deficit was lower than forecast, at about 5% of GDP.