Poland gets green light from Ecofin to delay fiscal deficit reduction to 2015
December 11, 2013
Minister Mateusz Szczurek at the Ecofin council meeting in Brussels, Belgium
The Polish government was given an extra year to bring down its general deficit below 3% of GDP and is now expected to achieve that goal in 2015, Finance Minister Mateusz Szczurek told reporters of the Economic and Financial Affairs Council's decision approving a November recommendation from the European Commission.
" Ecofin has just decided to move the deadline for the adjustment of Poland's budget deficit," Szczurek said. "We have been given an extra year, which Poland should be very happy about."
The extra time will enable Poland to conduct "such a fiscal consolidation policy" that will be "less damaging to economic growth and more rational," he added.
Poland is now required to reduce its deficit to 2.8% of GDP in 2015, from 4.8% in 2013 and 3.9% in 2014 (excluding the impact of pension system reform), according to Ecofin's Tuesday decision.
Poland got an extension to 2014 in May 2013 but in November the European Commission issued a new recommendation, moving that deadline to 2015.
In its November 15 report the European Commission issued a report saying that Poland needs to take extra steps in order to secure abrogation of the excessive deficit procedure by 2015 on top of "rigorous implementation" of measures already announced and adopted.