EU Urges Poland to Tackle Rising Deficit, Pension, and Energy Price Issues
Translated from Polish, summarized and contextualized by DistantNews.
At a glance
- The European Commission has issued recommendations to Poland regarding its public finances, pensions, and energy prices.
- Poland's deficit has risen significantly, with experts noting it is among the highest in the EU.
- Recommendations include targeted energy support, improving public spending efficiency, and ensuring adequate pensions, though skepticism remains about the effectiveness of these recurring suggestions.
The European Commission has presented Poland with a set of recommendations as part of its annual European Semester review, urging the country to address key economic challenges. While Poland has been recognized as one of the EU's fastest-growing economies, the Commission's advice focuses on persistent issues, particularly concerning public finances.
A primary concern highlighted by Commission experts is Poland's rising public deficit, which increased from 6.4% of GDP in 2024 to an estimated 7.3% in 2025, placing it second only to Romania within the EU. Experts stress the urgent need to stabilize public finances.
Other significant recommendations include addressing high electricity prices, the doubling of housing costs over the past decade, low living standards in eastern Poland, and the country's overall economic competitiveness. The Commission suggests targeted support for the energy market, enhancing the efficiency of public spending, particularly for defense funding, and increasing government revenue.
Furthermore, the Commission advises ensuring adequate pensions, which may involve practical measures to raise the effective retirement age. However, there is considerable skepticism regarding the impact of these recommendations, as they often repeat previous years' suggestions without significant government action. Experts point to Poland's failure to meet deficit reduction targets as evidence of "simulated actions" by the government, despite commitments to bring the deficit below 3% by 2028.
Wzrรณsล on z 6,4 proc. PKB w 2024 r. do 7,3 proc. w 2025 r. Gorzej jest tylko w Rumunii
Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.