European Commission for lifting excessive deficit procedure on Poland
June 3, 2014
Poland needs to take "no further steps" in the excessive deficit procedure at present and has green light for suspension of the procedure, although risks to a durable correction of excessive deficit exist, the European Commission wrote in an assessment of Poland's actions taken in response to the Council recommendation from December 2013.
"Given that Poland has met the recommended headline balance as well as the recommended change in the structural balance in 2014, the Commission considers that the procedure is to be held in abeyance," the European Commission wrote.
At the same time, the commission sees risks to a durable correction of the excessive deficit, "as the fiscal effort measured by both the corrected change in the structural balance and the bottom-up assessment are well below the recommended level."
"In particular, for 2015, and prior to the presentation of the 2015 budget, the Commission services forecast the headline deficit to decline to 3.1% of GDP (excluding the transfer of pension assets) and the structural improvement to reach 0.4% of GDP, thus below the targets recommended by the Council," the document reads.
"Therefore, the 2015 budget needs to include structural adjustment measures to ensure compliance with the Council recommendation."
Poland is obliged to reduce its public finance sector deficit to below 3% of GDP by 2015.