| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2013) 907 final (15.11.13) |
| Publication Date | 15/11/2013 |
| Content Type | Policy-making |
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According to Article 126 of the Treaty on the Functioning of the European Union (TFEU) Member States shall avoid excessive government deficits. The Stability and Growth Pact (SGP) is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation. On 7 July 2009 the Council decided that an excessive deficit existed in Poland and issued a recommendation to correct the excessive deficit by 2012 at the latest. On the basis of its 2011 autumn forecast, the Commission considered that Poland was not on track and asked for additional measures, which Poland adopted. On 11 January 2012 the Commission confirmed the Polish authorities had taken effective action towards a timely and sustainable correction of the excessive deficit and no further steps in the excessive deficit procedure of Poland were needed at the time. On 21 June 2013, the Council concluded that Poland had taken effective action but adverse economic events with major implications on public finances had occurred, and issued revised recommendations. Thus, Poland fulfilled the conditions for the extension of the deadline for correcting the excessive general government deficit as laid down in Article 3(5) of Regulation (EC) No 1467/97. The Council recommended that Poland should put an end to the excessive deficit situation by 2014. The Council established the deadline of 1 October 2013 for Poland to take effective action and to report in detail the consolidation strategy that is envisaged to achieve the targets. On 2 October 2013, Poland submitted a report on effective action. The macroeconomic scenario underpinning the report is similar to the one used for the Convergence Programme 2013. Since, according to the Commission's 2013 autumn forecast, the general government deficit in 2013 is projected to reach 4.8% of GDP, Poland is set to miss the headline deficit target of 3.6% of GDP recommended by the Council. Also the annual adjusted structural effort in 2013 is well below the recommended annual fiscal effort. The bottom-up analysis of new discretionary measures, complemented by an assessment of expenditure developments, shows an overall fiscal effort of 0.2% of GDP. This falls short of the required additional measures of 0.4% of GDP underlying the fiscal effort set in the Council Recommendation and confirms that Poland has not implemented the fiscal effort in 2013 as recommended by the Council. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2013:907:FIN |
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| Countries / Regions | Poland |
