The price of success
The EU has outlined a new version of its 2005 budget, in which Poland's contribution rises by EUR 268 million (zł.1.1 billion), or just over 12 percent, to EUR 2.37 (zł.9.62) billion, due to the strengthening of the złoty against the euro, and the consequent upward revision of Poland's Gross National Income (GNI).
During the revision of the EU budget, the złoty-denominated GNI figures were converted into euro at zł.4.08 - the rate at which the złoty traded on December 31, 2004. The first GNI estimate used to calculate Poland's contributions for this year was made in April last year, when the złoty was trading at of zł.4.74 to the euro.
"The earlier estimate puts Poland's GNI at some EUR 193 [zł.784] billion and the new puts it at EUR 225 [zł.914] billion due to the zloty's strengthening. In a way Poland is a victim of its own success," Deputy Finance Minister Wiesław Szczuka said.
"The contribution is still smaller than the zł.10.2 billion earmarked in this year's budget, so the difference of some zł.550 million could be used to lower the deficit," he added.
The Finance Ministry forecasts the 2005 budget deficit to equal about zł.33 billion, below the planned zł.35 billion.
Poland has so far made zł.4.3 billion in EU payments this year. The remainder - zł.5.4 billion - will be paid in monthly installments of around zł.900 million.
The złoty was the CEE's top performing currency last year. (Reuters)
During the revision of the EU budget, the złoty-denominated GNI figures were converted into euro at zł.4.08 - the rate at which the złoty traded on December 31, 2004. The first GNI estimate used to calculate Poland's contributions for this year was made in April last year, when the złoty was trading at of zł.4.74 to the euro.
"The earlier estimate puts Poland's GNI at some EUR 193 [zł.784] billion and the new puts it at EUR 225 [zł.914] billion due to the zloty's strengthening. In a way Poland is a victim of its own success," Deputy Finance Minister Wiesław Szczuka said.
"The contribution is still smaller than the zł.10.2 billion earmarked in this year's budget, so the difference of some zł.550 million could be used to lower the deficit," he added.
The Finance Ministry forecasts the 2005 budget deficit to equal about zł.33 billion, below the planned zł.35 billion.
Poland has so far made zł.4.3 billion in EU payments this year. The remainder - zł.5.4 billion - will be paid in monthly installments of around zł.900 million.
The złoty was the CEE's top performing currency last year. (Reuters)
