In July, Poland was included in the so-called excessive deficit procedure. It is triggered when the deficit exceeds 3 percent of the national budget's GDP or when the public debt is higher than 60 percent. GDP. In such a situation, the government of a given country is obliged to present a plan to reduce the deficit.
Poland achieved its goal. The European Commission will take into account our defense spending
In such a budget plan presented in October In Brussels Poland planned to exit the excessive deficit procedure through an uneven reduction: by 0.82% on average. GDP per year. However, Poland wanted the plan to include defense spending, which is expected to increase from 4.1 to 4.7 percent of GDP next year. Therefore, in relation to GDP, they will be the largest in the entire European Union and NATOwhich will also benefit the Community countries.
Our government's claims were not detached from Brussels' legal obligations. It is obliged to do so by the EU regulation on clarifying and accelerating the excessive deficit procedure. It indicates, among other things, that the European Commission, when conducting the excessive deficit procedure, should take into account “an increase in public investment in defence, where appropriate also taking into account time registration of expenditure on military equipment.
“Additional defense investments may justify less fiscal effort.” Important decision of the EC
The European Commission's spokeswoman for economic and financial affairs, Veerle Nuyts, said in a statement to PAP, quoted by TVP confirmed that “the Commission, in its June report, took into account a number of important factors” and “the increase in government investment in defense was clearly recognized as one of such important factors also in the case of Poland”.
“Defense spending can be part of a broader set of reforms and investments that underpin an extended and more gradual fiscal adjustment path, with a medium-term plan lasting up to seven rather than four years. Poland has chosen to present a four-year medium-term plan. At the same time, additional defense investments may justify lower fiscal effort in a given year and modulation of the time profile of fiscal correction over the period of the multi-annual deficit correction path,” we read in the statement.
The government is looking for money to meet its ambitious defense plans. There are leaks
Poland is also considering issuing defense bonds. This was announced by Finance Minister Andrzej Domański in an interview with Reuters. He revealed it on the sidelines of the summit Bank World Conference in Washington that Poland would like the European Union to contribute to our country's defense spending, but added that “it is not an easy process”