Poland needs improved financial discipline and better business environment

Representatives of the European Bank of Reconstruction and Development (EBRD) yesterday presented a report concerning European integration and regional cooperation. The report stated that the countries of Central and Eastern Europe face challenges in keeping budget discipline, reforming public finances and accelerating the privatization process. "However, in the context of Poland, the most important issues seem to be fiscal discipline, improving the business environment and reforming public finances. Expenditure should be lowered," said EBRD economist Samuel Frankhauser. He also added that the budget deficit could be substantially lowered by putting more emphasis on privatization, which would provide more fiscal revenues over the long-term and in turn increase productivity. The EBRD estimates that GDP growth in Poland will amount to 3% in 2003 and will increase to 4% in 2004. Frankhauser believes that Poland will have to delay introducing the Euro, as "Larger countries, such as Poland, will have to wait much longer due to the necessity of reforming public finances." (www.onet.pl) M.M.