Poland should increase investment while ensuring debt sustainability: EC

Poland should pursue a fiscal policy ensuring debt sustainability, while increasing investment, according to proposals setting out economic recommendations for the EU member states presented on Wednesday by the European Commission (EC).

The proposals focus on the most urgent challenges lying ahead of member countries amid the pandemic and will now be presented to the EU Council for approval.

The EC also suggests Poland improves the effectiveness of its healthcare system by, among other methods, providing it with adequate resources and accelerating the implementation of e-health services. The recommendations also concern the need to alleviate the impact of the COVID-19 crisis on the labour market, in particular by improving the situation of people in flexible and short-term forms of employment.

Furthermore, the EC advises Poland to continue its efforts to provide enterprises with access to finance and liquidity. In its opinion, investments should be focused on "green and digital transformation".

EU officials also see the need to "improve the investment climate, in particular by protecting the independence of the courts”. In its recommendations, the EC also draws attention to issues related to the rule of law in Poland, which have recently raised “further concerns, threatening the functioning of the legal order of Poland and the EU”.

In the case of Poland, the EC stressed that the outbreak of the COVID-19 pandemic put the country into a completely new situation, as for the first time in over 30 years it may face recession. However, according to data presented by the Polish government, thanks to, among other issues, precautionary measures such as social distancing and quarantine, the impact of the epidemic on people’s health has been relatively marginal.

The EU officials recalled the latest forecasts, which show that the Covid-19 pandemic will contribute to a 4.3 per cent decline in Polish GDP in 2020, and then to an increase of 4.1 percent in 2021.