Poland’s deficit could exceed EU limit

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Poland’s deficit, which is set to reach nearly PLN 20 billion next year, could exceed the 3 percent limit imposed by the European Commission, Puls Biznesu stated. The EU is skeptical that Poland will be able to keep its public sector deficit under its 3 percent threshold, indicating in its report that it expects Poland’s deficit to be 3.1 percent next year. Łukasz Kozłowski, of the Employers of Poland, said in the report that “the government did not include the effects of implementing their (election campaign) priorities.” The report implied that counting solely on more effective tax collection as a means to finance the increased spending was unrealistic.

The government disagreed with the information. According to Deputy Prime Minister Mateusz Morawiecki, there is no risk of Poland’s deficit being excessive. The government expects the deficit to remain at 2.9 percent of GDP. Breaching the limit would threaten the flow of €82.5 billion in development funds that Poland is set to receive through 2020.

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