8:30 4 June 2025
Poland’s credibility under strain
Poland’s economic credibility continues to decline, ranking third-worst among eight countries in a new Open Eyes Economy study. The biggest factors undermining trust are a ballooning parallel budget, the EU’s second-highest deficit, and a highly complex tax system—ranked worst in the region.
According to report co-author Sławomir Dudek, 20% of Poland’s debt lies outside parliamentary control in off-budget accounts. Poland is also the only country in the group without a fiscal council or long-term budget plan.
Despite improvement in financial system stability, with indicators at their strongest since 2018, experts warn of mounting risks. Banks now hold over 20% of assets in government bonds—above IMF caution levels—making public debt a systemic threat.
Economists also flag political pressure on the central bank and rising inflation expectations as future risks. With fast-growing expenditures and stagnant revenues, Poland faces mounting fiscal instability.
