The European Commission (EC) is set to apply a more lenient Excessive Deficit Procedure (EDP) for Poland, acknowledging the country’s unique economic circumstances. Poland's Finance Ministry confirmed ongoing dialogue with the EC, discussing the country’s fiscal challenges and plans to restore budgetary balance.
Due to increased spending on social programs, defense, and energy subsidies, Poland's budget deficit has surpassed the EU's 3 percent GDP limit. However, the EC recognizes these expenses as necessary, especially amidst geopolitical tensions and rising inflation.
The softer EDP allows Poland more flexibility in its financial planning while maintaining a commitment to gradually reducing the deficit.