Poland aims to meet EU budget rules despite higher spending

WARSAW, Poland — Poland's finance minister said Monday she is aiming to keep the country's budget deficit within European Union rules even after a series of pre-election spending pledges to help families, young people and pensioners.

Teresa Czerwinska said she is hopeful that Poland's budget deficit will be below 3 percent of the country's annual GDP, as required by EU law. She rejected speculation that she offered her resignation over the increased spending.

But many economists found the increase in spending concerning, a sign that the government is willing to worsen public finances to win elections. By contrast, the 2018 deficit was only 0.5 percent of annual GDP.

The leader of the right-wing ruling party, Jaroslaw Kaczynski, announced new benefits last month in a campaign speech ahead of May elections to the European Parliament and a general election in the fall. The Law and Justice party ranks highest in opinion polls after ramping up spending on social policy.

The cost of the benefits is estimated at some 20 billion zlotys ($5.2 billion) this year.

At the same time, the government says it has no money to grant teachers' demand for a 1,000 zlotys ($262) monthly raise. Talks were being held Monday to avert a nationwide strike planned by teachers' unions next month, though hopes for a deal were low.

Related News

Clinton offers plan to prevent 'excessive' drug price hikes

Sep 2, 2016

Hillary Clinton is pledging to better protect patients from steep increases in the cost of drugs

Put it on my card...or not

Sep 4, 2016

What to consider before paying for college tuition with a credit card

ITT Tech shutters all campuses after federal aid sanctions

Sep 6, 2016

The for-profit college chain ITT Educational Services is shutting down its campuses days after the U.S. Department of Education banned it from enrolling new students who use federal financial aid


Profit and Cost is the personal business & financial assistance for individuals considering to improve their profits and lowering the cost in their everyday life.

Contact us: sales@profitandcost.com