Poland agrees to participate in EU's new 'fiscal compact,' may contribute to IM.

By bne IntelliNews December 12, 2011
The European Union's summit in Brussels, finished early this weekend, has ended with 26 out of the EU27 member-states, including Poland (but excluding Britain), agreeing to sign a new "fiscal" compact," a pact aimed at streamlining fiscal austerity within the organization. Under the agreement, the rules governing the excessive deficit procedure will be reinforced: as soon as a member state is recognized to be in breach of the deficit ceiling of 3% of GDP by the European Commission, there will be automatic consequences unless a qualified majority of euro area member states is opposed. The new pact is to be signed by early March at the latest and ratified - by the middle of 2012. The summit also agreed upon an EUR 200bn injection to the International Monetary Fund (IMF), which should be redistributed among the most debt-laden economies (of this amount EUR 150bn would be contributed by euro-zone member states, while EUR 50bn - by other EU member states). Head of the Premier's Economic Council Jan K. Bielecki said that part of Poland's contribution will probably be included in the 2012 state budget. According to daily Rzeczpospolita, Poland might have to provide up to EUR 10bn from its EUR 74bn FX reserve assets.

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