2024-10-08 21:46 update: 2024-10-08, 21:47
Photo PAP/Tomasz Gzell
The Polish Ministry of Finance has outlined plans to reduce the country's deficit and come out of the EU's Excessive Deficit Procedure (EDP).
The ministry announced on Tuesday that the government adopted the medium-term budget and structural plan for 2025-2028.
"The plan aims to reduce the nominal deficit to below 3 percent of GDP by 2028, thereby exiting the EDP and putting debt on a path of gradual reduction (ultimately below 60 percent of GDP)," the statement said.
The ministry stated that the plan will utilise the EU's flexibility to spread deficit reduction over time. It added that the deficit forecast for 2024-2025, as presented in the plan, aligns with the 2025 draft budget.
According to the statement, "a significant challenge will be the need to meet high defence spending while simultaneously reducing the excessive deficit" and ensuring continued economic growth and public investment.
The plan will now be sent to the European Commission (EC) and the EU Council. The EC has a six-week timeframe to review the plan and suggest a spending route. In early 2025, the Ecofin Council will adopt both the proposed spending path and specific recommendations aimed at rectifying Poland's excessive deficit.
In July, the EU Council launched the EDP against Poland and six other EU members after the countries exceeded the EU deficit limit of 3 percent. In Poland, the 2024 deficit reached 5.7 percent of GDP. Under the procedure, the government is obliged to reduce its spending and get back into the required deficit band. (PAP)
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