| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2013) 906 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. On 10 December 2013, the Council established that Poland had not taken effective action in response to the Council recommendation of 21 June 2013. In order to correct the excessive deficit by the 2014 deadline and ensure its sustainability, the required additional structural effort for 2014 would amount to at least 1.6% of GDP, on top of the measures already included in the Commission 2013 autumn forecast. Since such an annual effort (higher than requested in the Council Recommendation of 7 July 2009 and higher than the 1.3% of GDP requested in the Council Recommendation of 21 June 2013) would result in a significant output loss at a time when the output gap is still negative, it is appropriate to set the deadline of 2015. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2013:906:FIN |
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| Countries / Regions | Poland |
