According to the forecasts of the European Commission, the total public debt in the EU-27 concerning GDP will amount to around 95 percent at the end of 2021. This is significantly more than the 60 percent threshold required by the Member States in the Treaty on the Functioning of the European Union.

Politicians are usually well aware of the dangers of rapidly growing debt, but having a governance perspective of several years at most, they find ways to subordinate fiscal policy to short-term political goals. What this can have in the long term, warn the authors of the report ‘The Threats of Excessive Public Debt: Sławomir Dudek, Ludwik Kotecki, and Paweł Wojciechowski.

"Today, cheap indebtedness is a natural temptation. The whole world is indebted, driven by low-interest rates and the increasing use of unconventional monetary policies, including central bank purchases of state assets. As usual, the first victims may be the so-called emerging markets, which include Poland," the authors of the report wrote.

The rapidly growing debt in Poland is also indicated by the International Monetary Fund, which in the latest report estimates that Poland's debt will increase by as much as 43.1 percent in 2019-2022 in PLN (and by 40.9 percent in USD), i.e. at a much faster pace than the global average (33.8 percent) and will increase by as much as PLN 451 billion in 2022.

So how do you react? Lower expectations for public expenditure, the public deficit, and the public debt itself, increase the transparency and openness of public finances, and the risk will be significantly reduced.

(Business Insider)