Commission recommends closing the excessive deficit procedure … – Onet.pl

 
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  The EC recommends closing the excessive deficit procedure against the Polish
 
 
 

Commission when making decisions took into account transfers to open pension funds (OFE), which last year still much strain on government spending. Without them our country’s budget deficit in 2014. Would have fallen below 3 per cent. GDP. The fact that the Commission took account of the fact that it became possible to recommending photos excessive deficit procedure.

European Commissioner for. Economic and Financial Pierre Moscovici said at a press conference in Brussels that the Polish deficit in 2014. was 3.2 percent. GDP, but the EU statistical office Eurostat confirmed that it would fall below 3 per cent. GDP, if there were additional costs associated with the pension reform of 1999. (Then introduced OFE).

– In connection with that forecast projects that the deficit will be lower than 3 percent. GDP this year, the conditions to close the procedure. Of course we will keep track of what is happening in Poland – said Moscovici.

Poland was covered by the excessive deficit procedure since 2009., which meant that we had to follow the recommendations of the Council of the EU, which is among the EU finance ministers. Her image opens the way for a reduction in VAT rates by the government and wage growth in budżetówce, as well as allocating higher amounts, eg. For research and development.

Moscovici rejected suggestions that the decision to recommendations photos with Polish procedures could affect the electoral cycle in our country, stressing that the EC was based solely on data. – We had to take into account the statistical data, resulting deficit (budget) fell below the threshold of 3 percent. Of GDP in 2014., So it will be also in this and probably next year. Therefore zarekomendowaliśmy the abolition of the procedure – he argued.

– in 2014. Were still felt the effects of pension reform 1999., although the Act of December 2013. reform has been withdrawn. Taking into account the net cost of the 1999 reform. Deficit in 2014. It amounted to less than 3 percent. GDP (2.7 per cent. In 2015.). Therefore, the Commission concluded that Poland fulfills the deficit criterion set out in the Stability and Growth Pact “- highlighted in the Commission communication.

European Commission officials, however, will continue to look at public spending in our country. European Commission on Wednesday issued recommendations recommends Poland further improvement in the public finances on a scale of 0.5 per cent. of GDP in 2015 and 2016. Given the current size our economy, public finance deficit should decrease by approx. 8.5 billion zł per year.

– We will continue to monitor fiscal and budgetary situation in Poland to ensure that the necessary margins are maintained and there is sustained reduction in the deficit – emphasized the Commissioner.

European Commission also recommended the establishment of an “independent fiscal council”, limiting the use of reduced VAT rates as well as begin the process of equalization of pension arrangements for farmers and miners with those of other employees. The Commission wants the government to set a timetable in this area and has taken measures to limit the use of temporary contracts and civil law in the labor market. The recommendations were also indication by the government to remove obstacles to investment in projects on the rail.

European Commission its assessment of Poland passed a group of 10 EU countries that do not contain macroeconomic imbalances. Next to us in this group included, among others Denmark, Estonia, Austria, Luxembourg, Slovakia and Lithuania.

(ks)