Military expenditure will not be included in the public finance deficit. This is good news for Poland, as emphasized by Finance Minister Andrzej Domański.
“We have an agreement with the European Parliament on the EU’s new budgetary architecture. Increased investment in defense will not be taken into account in the excessive deficit procedure. Budget adjustments may take longer,” Domański wrote on the X platform on Saturday. .
Domański satisfied with the agreement in the EU. “Fantastic work”
The Polish minister also congratulated the Belgian Minister of Finance, Vincent Van Peteghem, on the “fantastic work of the Belgian Presidency of the Council”. He added that “Europe is getting stronger.”
This year, the Polish government plans to spend as much as 4.1 percent on defense. Gross domestic product (GDP) will significantly increase budget debt. Domański therefore appealed to EU leaders for European solidarity in these expenditures.
Under the new rules, which still need to be formally approved by the EP and the EU Council, the European Commission will present a ‘reference trajectory’ to member states with a national debt of more than 60%. gross domestic product or where the government deficit is greater than 3%. GDP.
The ‘reference path’ is a set of recommendations on how a country can ensure that public debt is likely to decline by the end of the four-year fiscal adjustment period or remain at reasonable levels over the medium term. Countries with a deficit above 3%. will have to take action to reduce this by 0.5 percentage points. on a yearly basis. For countries with higher deficits, the requirements will be higher.
In Poland, the predicted financial sector deficit according to the EU methodology will be 5.1% in 2024. GDP. So we will certainly exceed 3%. established by the EU.
President Andrzej Duda decided to sign the 2024 budget law at the end of January, but at the same time referred it to the Constitutional Court under the so-called follow-up inspection.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
