Brussels, 06/02/2007 (Agence Europe) - Following assessment of the first series of Stability and Convergence Programmes (EUROPE 9350), the European Commission will be looking on Wednesday at the budget performance of six further Member States (Finland, Hungary, Ireland, Luxembourg, Malta and Poland). A fortnight ago, EU Economic and Monetary Affairs Commissioner Joaquin Almunia said that given the recent period of good growth and the current budget adjustment trajectories, Member States should clearly focus on meeting their medium-term objectives. This is required, he added, under the Stability and Growth Pact but is also needed to tackle the ageing population.
When examining Poland's Convergence Programme, the Commission will issue a recommendation giving Poland a deadline for reducing its excess budget deficit to below 3% GDP as required by the Stability and Growth Pact (SGP). At the end of November 2006 EU finance ministers saw that Poland would not be able to correct the deficit in 2007 as has been forecast in July 2004 when endorsing the Polish authorities' proposed timeline (see EUROPE 9316). Under Article 104, paragraph 7, of the EC Treaty, Poland will be given a new deadline. Poland's current deficit is technically within the SGP upper limit, but fails to take into account the entry of new statistical requirements which, from April 2007 onwards, will no longer authorise the combining for accounting purposes of pension contributions under the second pillar with reserves like the administration's income. This new rule will mean Poland's deficit will be 2% greater than at present, reaching 4% of GDP in 2007 according to the Commission's autumn predictions (3.7% of GDP according to the Polish government's budget figures). (ab)