The European Commssion has warned Poland of consequences arising from a predicted continuation of a budget deficit rise.
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The European Commission has warned Poland that a continuation of this year's budget deficit running in excess of 3 percent of the GDP into the next year would trigger a standard procedure envisaged for EU members violating this crucial element of maintaining proper economic development. According to official Central Statistical Office and Eurostat figures Poland's budget deficit last year amounted to 3.9 percent of its GDP. Brussels is waiting with the decision till May 4th when spring economic prognostics shall be made available.
Should the findings prove to Poland's disadvantage, an adjustment period will be assigned for rectifying the situation. Such measures have been applied by the EC a few months ago with regard to France, Greece, Holland and Spain.
An important issue now is to what extent can the growing budget deficit affect Poland's preparations for eurozone entry? Most analysts are of the opinion that the sitauation may cause some delay to the government forecast of 2012, but will not develop into any major threat.