EU suspends Poland's excessive deficit procedure, closes it for 6 other countries

By bne IntelliNews June 23, 2014

The Council of the European Union has decided to suspend the excessive deficit procedure in the case of Poland (which was launched five years ago). At the same time, the Council closed excessive deficit procedures for Belgium, the Czech Republic, Denmark, the Netherlands, Austria and Slovakia, confirming that these countries have reduced their deficits below 3% of GDP, the EU's reference value for government deficits.

It also said that the macroeconomic scenario underpinning Poland's budgetary projections in the Convergence Programme is plausible for 2014 and optimistic for 2015 with a higher rate of real GDP growth of 3.8% compared to 3.4% in the European Commission's 2014 spring forecast. Based on its assessment of the Convergence Programme and the Commission forecast, the Council is of the opinion that while Poland is expected to stay within the ceiling of the headline deficit recommended by the Council for 2014, there are risks to a sustainable correction of the excessive deficit in 2015 and, thereafter, to the appropriate adjustment path towards the medium-term objective.

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