WARSAW: The EU’s executive body has called on the Polish government to drive down expenditures. Brussels warns that the country’s deficit could otherwise exceed 3 percent of the GDP. “We forecast that if the current tendencies and discussions are to materialise, the budget deficit may actually start increasing next year once again,” the EC’s deputy head, Valdis Dombrovskis said at the European Economic Congress in Katowice on Friday. “Our forecast is a 2.6-percent deficit for this year and 3.1 for next year.”
Dombrovskis also pointed to the ruling government’s drive to reverse retirement reforms introduced by the previous Civic Platform cabinet. The EC believes that lowering the retirement age from 67 for both sexes back to 65 for men and 60 for women could affect the future of Poland’s economic growth.
“It is not only a budgetary issue, it is also a matter of the future of economic development, so it would be very important to stay on course as regards the pension reform,” Dombrovskis said. According to the European Commission’s forecasts, Poland’s economy is set to grow to up to 3.7 percent by 2017.
