Poland seeks excessive deficit procedure exit

Poland’s Ministry of Finance will apply to the European Commission for removing the excessive deficit procedure (EDP) in 2015, Puls Biznesu daily reported on Friday citing anonymous source from the chancellery of the Prime Minister. Minister Mateusz Szczurek confirmed the news later in the afternoon.

The excessive deficit procedure is imposed on every member state whose deficit exceeds 3 percent of its GDP or the public debt is bigger than 60 percent of GDP. Poland has been stuck in the EDP since 2007.

According to data by GUS, Poland’s general gov’t deficit stood at 3.2 percent of the GDP and the public debt amounted to 50.1% of GDP in 2014. Ministry estimates that the Polish general government deficit will amount to 2.7 percent of GDP, minister Szczurek informed on Friday in Washington. Hence, the government decided to apply to the EC for removing the procedure.

“Chances that the procedure will be removed are very high,” the source said.

Exiting the EDP may result in lowering the VAT in a shorter perspective or improving Poland’s ratings, the daily pointed out.

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