Poland might have its excessive deficit procedure lifted - Rehn
February 25, 2013
European Commission may lift excessive deficit procedure on Poland after the spring set of forecasts from the European Commission but some uncertainty still exists, European Commissioner for Economic and Monetary Affairs Olli Rehn said on Friday commenting on the winter forecasts.
"A possible abrogation can be envisaged only after the spring forecasts, as fiscal projections had not been confirmed by Eurostat," Rehn said.
Poland is among six countries considered for the lifting of excessive deficit procedure after the spring forecasts but, along with Lithuania, it is not a clear-cut case, Rehn said.
"Forecasts [of deficit] for Lithuania and Poland are above but still close to 3% of GDP," he said. "Since both countries' debts are below 60% of GDP, they could be eligible for a special rule that takes into account the effects of pension reform, including the creation of the mandatory private pension savings system."
Poland should be able to reduce its general government deficit to 3.4% of GDP this year and to 3.3% in 2014, the European Commission said in its winter forecast out on Friday.