The European Commission (EC) has proposed that the Council of the European Union subject Poland and six other countries to the excessive deficit procedure (EDP). This is because Poland's deficit exceeded the Treaty on the Functioning of the European Union (TFEU) limits, which the EC deemed neither exceptional nor temporary, with the deficit expected to rise further in 2024.
In a June report, the EC justified the procedure for seven countries, including Poland, and notified Polish authorities. Poland's public sector deficit was 5.1% of GDP in 2023, with public debt at 49.6%. The EC projects the deficit to stay above 3% through 2025, driven by increased defense spending, new social benefits, and public sector wage hikes. Future recommendations and budget plan reviews will follow under TFEU Article 126.