EC assesses Poland takes effective action to correct excessive deficit.

By bne IntelliNews January 12, 2012
Belgium, Cyprus, Malta and Poland - the countries that were at risk of not meeting their deadlines of 2011 or 2012 to correct their excessive deficit - have taken effective action to correct their deficits, unlike Hungary, according to a statement by the European Commission. Therefore, the Commission considers that no further steps in the excessive deficit procedure are necessary for these four countries, though it will continue to monitor budgetary developments closely. This is the first time EC makes a ruling on the basis of the recently passed six-pack. However, as daily Rzeczpospolita noted, this package makes it possible to declare the end of the excessive deficit procedure when the given country is "close to" rather than below the 3% deficit limit, provided that it has implemented a pension reform in the past. FinMin Jacek Rostowski said in a letter recently sent to Rehn, that the Polish authorities intend to eliminate the excessive deficit procedure in 2012, i.e. as required by EC. Poland's general government deficit is to fall to 2.97% of GDP in 2012 (i.e. below the 3% EU limit) from 5.6% estimated for 2011. In November, however, EC forecasted Poland's general government deficit at 4.0% of GDP for 2012 and 3.1% for 2013. Rzeczpospolita says EC now estimates the 2012 deficit at 3.3% of GDP.
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