The Polish government will continue talks in the coming weeks to ensure that Poland is not drawn into the excessive deficit procedure, Finance Minister Andrzej Domański announced.
– When it comes to the excessive deficit procedure, this is of course something we take into account. The decision on a possible EDP, i.e. an excessive deficit procedure, will be available after the 2023 results, i.e. in April. One of them is the procedure, and the other is the recommendations that accompany this procedure. And here we work very hard to ensure that factors arising from the ongoing war and high energy prices are taken into account when making decisions. They have a significant impact on the level of the budget deficit in Poland, Domański said during the budget debate in the Senate.
The minister said he had a conversation with Trade Commissioner Valdis Dombrovskis last week. – In the coming days and weeks we will hold further discussions to ensure that Poland is not subject to the excessive deficit procedure, he added.
What next with the shortage?
This year’s draft budget law assumes that the public finance deficit (according to the EU methodology) will reach 5.1% in 2024. GDP in 2024. It is also stated that the sector deficit could be lower than 5.6% this year. GDP is included in the budget notification preparation phase in the autumn.
Speaking to ISBnews in November, Monetary Policy Council (MPC) member Ludwik Kotecki said that in his view we would start the excessive deficit procedure, although there are voices that say we will not start that. As the former Deputy Minister of Finance explained: If our deficit is well above 3% of GDP in 2023 and there are no extraordinary, special reasons to justify this situation, the European Commission will impose an excessive deficit procedure and it will be imposed to Poland based on hard data for 2023. Excluding military expenditure from the deficit will not be so easy and may only help a little in the future, but not at the decision-making stage on the excessive deficit procedure itself. He estimated that the public sector deficit could reach around 6% of GDP in 2023.
Source: Do Rzeczy
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