20:05 19 June 2024
EU launches excessive deficit procedure against Poland
The European Commission announced its intention to recommend the opening of the excessive deficit procedure (EDP) against Poland to the EU Council in July. This decision stems from Poland's deficit exceeding 3% of GDP, as assessed under Article 126 (3) of the EU Treaty.
The Commission's report identified seven Member States, including Poland, where the EDP is deemed justified. This procedure obliges countries to outline corrective measures and timelines to reduce deficits. Despite the deficit reaching 5.1% of GDP in 2023 due to increased defense spending and energy price supports, Finance
Minister Andrzej Domański expects lenient recommendations from the EU.
Poland previously underwent the EDP from 2004 to 2008. The current deficit projections for 2024 foresee continued fiscal challenges, including a public debt target of 54.2% of GDP.
Source: bankier.pl
