Brussels, 10/06/2008 (Agence Europe) - Although Polish public finance is on the right track, the budgetary situation of the United Kingdom has grown worse. On Wednesday 11 June, the Commission will therefore decide to close excessive deficit procedure against Warsaw and open another new one, against London.
As indicated during the presentation of the spring economic forecasts, Poland brought its deficit down from 3.8% in 2006 to 2% in 2007 (EUROPE 9652). According to the Commission, this correction should allow the country to remain below 3% in a more sustainable manner, despite a worsening in the figures for the years to come (2.5% in 2008 and 2.6% in 2009 if policies remain as they are). It will suggest that the Ecofin Council repeal excessive deficit procedure initiated in May 2004. We recall, moreover, that the Commission will, at the same time, approve Poland's new updated convergence programme (as well as Belgium's stability programme).
Hardly out of the previous procedure opened against it (closed in October 2007), the United Kingdom will again find itself coming under Article 104 of the Treaty. Notification by London of figures for the past budgetary year and that to come will not change anything - the British deficit will be well and truly past 3% in 2008. At the end of April, the Commission estimated that the British public deficit would be 3.3% of GDP in 2008 (while the United Kingdom's financial year is from April 2008 to May 2009). Given the drift foreseen (the deficit should remain the same in 2009), the Council will be invited to reopen excessive budgetary deficit against it in July. (A.B./transl.jl)