19:30 27 May 2020
Poland can pay a lot to recover EU economy
Two independent calculations have been prepared by the Bloomberg agency and the European Center for Economic Research in Mannheim (ZEW). They show that Poland may become one of the main net payers of the plan to rebuild the EU economy, presented on May 18, 2020, by German Chancellor Angela Merkel and French President Emmanuel Macron.
According to the scenario of the German institution, Poland would be in a group of countries that would pay the most among EU member states in relation to GDP.
The criteria for distributing funds are still unknown. The European Commission has not yet presented them, but if the costs were determined by the recent economic forecast of the EU's executive or the size of the recession in individual member countries, Poland would be among the net payers of the Reconstruction Fund.
The program of reconstruction of the European economy, presented by the German chancellor and the French president, amounting to the sum of half a billion euros would become a flywheel for the EU economy fighting the effects of the coronavirus pandemic.
The European Commission would obtain this money under loans taken on financial markets and pay it back in the next years from the EU budget. The head of the Commission Ursula von der Leyen welcomed this plan.
The analysis prepared by the Bloomberg agency shows that the most to the EU Fund for Reconstruction in the Franco-German vision in relation to GDP would be subsidized by Central and Eastern European countries, including Poland, and the Nordic countries.
Bloomberg claims that in the perspective of several years Poland could subsidize between €2.3-4.5 billion (0.4 to 0.8 percent of net GDP). The agency used the recent economic forecast of the European Commission as the basis for calculations. It shows that our country's GDP will shrink by 4.3 percent in 2020, while next year it will increase by 4.1 percent. This is one of the best results among EU Member States. Definitely better than the forecasts for the countries of Southern Europe, whose economies will be hit hardest by the economic effects of the coronavirus pandemic.
(EURACTIV)
