Arianna Podesta, the spokeswoman of the European Commission (EC), will express her opinion on the Polish budget on Tuesday. Poland's plan envisages that it will be possible to get out of the excessive deficit within four years.
On Tuesday, Brussels will present its views on the budget plans of the countries presented in October. Only two countries submitted their plans on time, which passed on September 20. Poland submitted the document in October, and several countries received permission from the European Union to submit it even later (including Belgium and Romania, which, along with Poland, have excessive deficit procedures).
In the so-called EU countries, they propose financial goals, priority reforms and investments in their medium-term plans. Countries facing excessive deficit procedures, including Poland, will additionally show how they plan to balance the budget. They can do this within four or seven years.
The European Commission will evaluate the Polish budget
Poland's plan states that the goal is to reduce debt by 60%. GDP, limiting the deficit of the public finance sector to less than 3%. GDP, and as a result, within four years, we will get out of the excessive deficit.
One of the main topics of the dialogue between the Polish government and the European Commission, which has been going on since June, is the disagreements about the scope and speed of consolidation. Brussels believes that the deficit should be reduced to 0.82 percent. GDP per year, taking into account that the state finances will be balanced within four years.
In the end, the improvement of Poland's goal resulted from the initial structure of 0.82%. GDP per year is in line with the EC's recommendation, but unlike the linear path proposed by the plan, the plan assumes an uneven distribution of deficit reduction.
Next year – according to the 2025 budget bill – the deficit should be reduced by 0.25%. GDP. This means more efforts in the next three years of the plan – on average, a little more than 1 percent. GDP in 2026-28.
Meanwhile, the regulation on excessive deficit procedures states that the minimum budget deficit reduction should be at least 0.5%. GDP. Poland's plan for 2025 envisages a smaller deficit improvement than what follows from EU regulations. However, the Polish government explained this by increasing defense investment.
On Wednesday, the European Commission will present a statement on the budget plans that must be submitted by all member states, including those outside the euro zone, as a result of the reform of financial rules. It will also publish conclusions on the budget laws of the euro area countries for 2025. In the next step, the ideas and plans must be approved by the Council of the European Union, which the finance ministers will probably do in December.
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