EC: Poland to manage to bring general government deficit to 3% of GDP in 2012.

By bne IntelliNews February 4, 2010
Poland will likely manage to bring its general government deficit to the EU0-required limit of up to 3% of GDP in 2012 from around 7.2% estimates by the Polish government for 2009, though it will require an intensification of the fiscal effort in 2011 and 2012, the European Commission announced in its report. It added that the success of the authorities' strategy therefore would require a very rigorous implementation of the budget in 2010 - to ensure strict respect of expenditure targets and that any windfall revenue is allocated to deficit reduction - and consolidation efforts in the 2011 and 2012 budgets which went well beyond those currently planned. On Tuesday, PM Donald Tusk announced that the convergence programme would stipulate for bringing the country's general government deficit to 3.0% of GDP in 2012 or in 2013, if the economic growth proves lower than currently forecasted. Meanwhile, earlier on Wednesday, TV channel TVN CNBC Biznes reported, quoting unofficial government sources, that the programme, whose update should be ready shortly, would stipulate for GDP growth of 3.4% in 2010 vs. last year's 1.7%. In 2011, the Polish economy is expected to expand by 4.5% and in 2012, by 4.2%. The 2010 central budget law stipulates for GDP growth of 1.2% this year but the government's representatives repeatedly admitted that it would be much higher - deputy PM and economy minister Waldemar Pawlak even said that it could exceed 3.0%. The Premier pledged that the convergence programme's update would be passed on Wednesday (which has not materialised) or by next Tuesday, when the cabinet's next regular is scheduled. He explained that the cabinet had discussed the scheme during its Tuesday sitting, but failed to be passed due to concerns voiced by deputy PM and economy minister Waldemar Pawlak, who wanted the update to follow the government's approval of the public finances consolidation scheme, presented by the Premier last Friday. ISB, tom

Related Articles

EC refers Poland to court for delay on renewable energy rules.

The European Commission is referring Poland (and Cyprus) to the Court of Justice of the European Union for failing to fully transpose EU's Renewable Energy Directive, according to the ... more

ZEW Economic Sentiment Indicator for Poland surges to 42.9pts in February.

The ZEW-Erste Group Bank Economic Sentiment Indicator for Poland (economic expectations) surged by 22.3pts m/m to 42.9pts in February, according to a report by the Center for European Economic ... more

FinMin: Poland to inject EUR 5.5bn of FX reserves to ECB upon euro-zone entry.

When Poland joins the euro-zone, it will have to transfer EUR 5.47bn of its foreign-currency reserves to the European Central Bank, according to a statement by the ministry of finance. The ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss