Recommendation for a Council Decision abrogating Decision 2005/183/EC on the existence of an excessive deficit in Poland
Date: 2008-06-11
Institutions: European Commission
Subjects: Poland, budget deficit, public debt, public finance, stability pact

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 11.6.2008 
SEC(2008) 2011 final 

Recommendation for a  

COUNCIL DECISION 

abrogating Decision 2005/183/EC on the existence of an excessive deficit in Poland 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

BACKGROUND 

Article 104 of the Treaty establishes that Member States should avoid excessive deficits and 
lays down a procedure for their identification and correction. The excessive deficit procedure 
(EDP)  is  further  specified  in  Council  Regulation  (EC)  No  1467/97  on  “speeding  up  and 
clarifying  the  implementation  of  the  excessive  deficit  procedure”1,  which  is  part  of  the 
Stability and Growth Pact. According to Article 104(2) of the Treaty, the Commission has to 
monitor  compliance  with  budgetary  discipline  on  the  basis  of  two  criteria,  namely:  (a) 
whether the planned or actual government deficit exceeds the reference value of 3% of GDP 
(unless either the deficit ratio has declined substantially and continuously and reached a level 
that comes close to the reference value; or, alternatively, the excess over the reference value is 
only  exceptional  and  temporary  and  the  ratio  remains  close  to  the  reference  value);  and  (b) 
whether government debt exceeds the reference value of 60% of GDP (unless the debt ratio is 
sufficiently diminishing and approaching the reference value at a satisfactory pace). 

In accordance with the Protocol on the excessive deficit procedure annexed to the Treaty, the 
Commission provides the data for the implementation of the EDP. As part of the application 
of this Protocol, Member States have to notify data on government deficits and debt and other 
associated variables twice a year, namely before 1 April and before 1 October, in accordance 
with  Article  4  of  Council  Regulation  (EC)  No  3605/932,3.  As  explained  in  the  box  below, 
Poland  was  among  the  countries  which  benefited  from  a  transition  period  for  implementing 
the Eurostat decision of 2 March 2004 on the classification of funded pension schemes and as 
a  result  notified  deficit  and  debt  figures  without  the  net  cost  of  the  1999  pension  reform 
(currently  amounting  to  around  2%  of  GDP  annually)  until  March  2007.  Since  then,  deficit 
and  debt  figures  have  been  notified  in  accordance  with  the  Eurostat  decision.  Unless 
mentioned explicitly, all figures quoted in this document are in accordance with the Eurostat 
decision. 

Box: The classification of pension schemes 

There  are  typically  different  pillars  within  a  country’s  pension  system,  such  as  pay-as-you-go  or 
unfunded  systems  and  funded  systems;  furthermore,  pension  schemes  can  be  of  the  defined-benefit 
(DB) or defined-contribution (DC) variety. 

If a pension scheme is classified in the government sector, contributions collected and benefits paid by 
the  scheme  are  government  revenue  and  expenditure  and  contribute  to  the  government  balance.  If  a 
pension scheme is classified in a sector other than government, its contributions and benefits do not 
contribute  to  the  government  balance.  The  ESA95  accounting  rules  state  that  pension  schemes 
classified within government are those which are “imposed, controlled and financed by government”. 

On  2  March  2004,  Eurostat  clarified  that  funded  DC  pension  schemes  do  not  fulfil  these  criteria 
because pensions paid by such schemes (i) depend primarily on financial markets performance (i.e. not 
under  government  control)  and  (ii)  are  financed  by  reserves  that  are  not  economically  owned  by 

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OJ  L  209,  2.8.1997,  p.  6.  Regulation  as  amended  by  Regulation  (EC)  No  1056/2005  (OJ  L  174, 
7.7.2005, p. 5). 
OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 
22.12.2005, p. 1). 
The most recent notification of Poland can be found at: 
http://epp.eurostat.ec.europa.eu/portal/page?_pageid=2373,58110711&_dad=portal&_schema=portal. 

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government. Even if they are mandatory or if they are managed by government (for example, managed 
by the same government agency in charge of the pay-as-you-go pillar) or if there is some government 
guarantee of a minimum pension, funded DC schemes should not be classified within government (*). 

A transition period, expiring in spring 2007 (first notification of 2007), was granted to implement this 
decision (**). 

(*) Eurostat News Release No 30/2004 of 2 March 2004. 
(**) Eurostat News Release No 117/2004 of 23 September 2004. 

On 12 May 2004, the Commission initiated the EDP for Poland with the adoption of a report 
under  Article  104(3),  based  on  a  general  government  deficit  of  4.1%  of  GDP  (excluding 
pension  reform  cost)  in  20034.  On  5  July  2004,  the  Council  decided,  on  a  recommendation 
from the Commission, that Poland was in excessive deficit according to Article 104(6)5. The 
Council decision stated that the deficit and the debt figures would have to be adjusted upward 
if the funded pension schemes were excluded from the general government sector following 
the  Eurostat  decision  on  the  classification  of  the  funded  pension  schemes  (see  box).  At  the 
same  time,  and  also  based  on  a  Commission  recommendation,  the  Council  addressed 
recommendations under Article 104(7) to Poland with a view to bringing the situation of an 
excessive  government  deficit  to  an  end,  by  2007  at  the  latest6.  On  28  November  2006,  the 
Council  decided  under  Article  104(8),  on  a  recommendation  from  the  Commission,  that 
action taken until then by the Polish authorities was inadequate7.  On  27  February  2007,  the 
Council  issued  new  recommendations  under  Article  104(7)  based  on  a  recommendation  by 
the Commission. 

In its second recommendation under Article 104(7), the Council recommended that the Polish 
authorities put an end to the excessive deficit situation by the original deadline of 2007 and 
reduce  the  general  government  deficit  in  a  credible  and  sustainable  manner  and  to  this  end 
ensure  an  improvement  of  the  structural  balance  (i.e.  the  cyclically-adjusted  balance  net  of 
one-off  and  other  temporary  measures)  by  at  least  0.5  percentage  points  of  GDP  between 
2006  and  2007.  The  Council  established  the  deadline  of  27  August  2007  for  the  Polish 
authorities  to  take  effective  action.  In  addition,  the  Council  invited  Poland  to  ensure  that 
budgetary  consolidation  towards  its  medium-term  objective  of  a  structural  deficit  of  1%  of 
GDP was sustained after the excessive deficit would have been corrected. 

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SEC(2004) 826. 
OJ L 62, 9.3.2005, p. 18. 
All EDP-related documents for Poland can be found at the following website: 
http://ec.europa.eu/economy_finance/sg_pact_fiscal_policy/excessive_deficit9109_en.htm. 
OJ L 414, 30.12.2006, p. 81. 

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Table 1: Adjustment endorsed by the Council on 27 February 2007 

% of GDP, unless indicated otherwise 

General government balance 

change in structural balance 

p.m.: Real GDP growth (%) 

2006 

−3.9 

5.4 

2007 
deficit close to 38 

at least +0.5 

5.1 

Note: Structural balance = cyclically-adjusted balance excluding one-off and other temporary measures. 

Source:  Council  recommendation  under  Article  104(7)  and,  for  real  GDP  growth,  Council  opinion  on  the 
November 2006 update of the convergence programme, both adopted on 27 February 2007. 

On 20 November 2007, i.e. after the expiry of the deadline for taking action set in the Council 
recommendation, the Commission adopted a communication to the Council, which concluded 
that  the  action  taken  by  Poland  in  response  to  the  Council  recommendation  was  consistent 
with  the recommendation.  While the Commission expressed concern about the durability of 
the correction of the excessive deficit in 2008 and 2009, no further steps under the EDP were 
recommended at that stage9. In its meeting of 4 December 2007, the Council concurred with 
this assessment. Both the Commission and the Council invited the Polish authorities to submit 
as  soon  as  possible  an  updated  convergence  programme  describing  their  medium-term 
strategy for the whole legislature, consistent with a durable correction of the excessive deficit 
and further progress towards the medium-term objective. A new programme was submitted at 
the  end  of  March  2008.  The  Commission  is  recommending  a  Council  opinion  on  this 
programme together with this recommendation for a Council decision. 

According to Article 104(12), a Council decision on the existence of an excessive deficit is to 
be  abrogated,  on  the  basis  of  a  Commission  recommendation,  when  the  excessive  deficit  in 
the Member State concerned has, in the view of the Council, been corrected. 

2. 

RECENT DEFICIT DEVELOPMENTS 

Since peaking at 6.3% of GDP in 2003, the general government deficit declined by more than 
1  percentage  point  annually  on  average  to  reach  2%  of  GDP  in  2007,  based  on  the  data 
provided  by  the  Commission  (Eurostat)  following  the  reporting  by  Poland  before  April 
200810, 11,12.  The  outturns  were  generally  better  than  targeted  thanks  to  positive  growth 

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In  its  recommendation,  the  Council  referred  to  the  November  2006  update  of  the  convergence 
programme, which targeted a deficit of 3.4% of GDP in 2007 and which “assumes that, for the purpose 
of  abrogating  the  decision  on  the  existence  of  an  excessive  deficit  under  Article  104(12),  the 
Commission and the Council could, as foreseen in Article 2(7) of Regulation (EC) No 1467/97, consider 
the cost to the budget of the 1999 pension reform [estimated at around 2% of GDP in 2007] according 
to a linear degressive scale amounting to 60 % in 2007. The Council recalls that for Poland to benefit 
from this provision, the deficit should have declined substantially and continuously and have reached a 
level that comes close to the reference value. As the deficit has declined substantially and continuously 
over the period 2004-2006, the outcome for the 2007 deficit and the outlook thereafter will determine 
whether this provision can be applied to Poland”. 
SEC(2007) 1543. 
Eurostat News Release No 54 of 18 April 2008. 
Deficit ratios are usually revised – upwards or downwards – after the publication of the first outcome in 
the spring notification. For the EU Member States as a whole, the revisions are usually relatively small 
and  on  average  insignificantly  different  from  zero.  In  view  of  the  distance  between  the  currently 

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surprises  resulting  in  windfall  revenues  as  well  as  the  incomplete  execution  of  expenditure 
plans. 

The 2007 general government deficit outturn was 2.0% of GDP, compared to 3.4% projected 
in the November 2006 convergence programme. Much higher real and nominal GDP growth 
than assumed in November 2006 was the main reason, but also expenditure was restrained. In 
particular,  high  profitability  of  companies  allowed  for  growth  in  subsidies  to  be  contained, 
while  the  rapid  fall  in  unemployment  and  the  lack  of  indexation  imposed  by  the  Hausner 
plan13  curtailed  growth  in  social  transfers.  In  addition,  compensation  of  public  sector 
employees was lower than planned. Finally, government investment was lower than projected 
because  of  a  slower  absorption  of  EU  funds  than  planned.  Overall,  the  expenditure-to-GDP 
ratio was 1.5 percentage point lower than projected in November 2006. On the revenue side, 
revenue  from  indirect  taxes  and  social  contributions  turned  out  better  than  envisaged  in 
November  2006,  mainly  thanks  to  a  much  higher  employment  and  wage  growth.  These 
positive surprises were offset by a lower performance of other revenue items (direct taxes due 
to an increase in tax brackets). Overall, this led to a revenue ratio slightly below the planned 
one. 

3. 

DEFICIT PROJECTIONS FOR 2008-2009 AND BEYOND 

For 2008, the Commission services’ spring 2008 forecast projects that the general government 
deficit will increase to 2.5% of GDP, in line with the target in the March 2008 convergence 
programme. GDP is expected to grow by 5.3% and 5% in 2008 and 2009, respectively. The 
Commission services foresee that private consumption accelerates in 2008 to 5.6% supported 
by  the  social  contributions  cuts  and  decelerates  to  4.7%  in  2009  because  of  a  deteriorating 
external environment weighing on consumers’ confidence. 

The increasing general government deficit results from the Polish 2008 budget, which targets 
a  worsening  of  the  central  state  balance  (non  ESA95)  by  about  0.8%  of  GDP  in  2008 
compared  to  the  2007  outturn  because  of  a  number  of  deficit-increasing  measures  adopted 
before  the  parliamentary  elections  of  October  2007.  Most  of  them  will  reduce  government 
revenues: a second cut in social contributions and personal income tax relief for families. On 
the  expenditure  side,  the  2008  budget  envisages  higher  public  investment  and  restores  the 
generous (inflation plus wage growth) annual indexation of pensions and disability benefits. 
The  deficit-increasing  measures  will  be  partly  offset  by  improved  tax  compliance,  higher 
taxable income, and excise duty hikes related to the EU tax harmonisation. 

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reported deficit for 2007 and the deficit reference value, there is a very low probability that potential 
future revisions in government accounts would raise the 2007 deficit ratio in excess of 3% of GDP. 
In accordance with Article 2(7) of Regulation (EC) No 1467/97, a decision to abrogate a decision on the 
existence of an excessive deficit should take into account the net cost of a pension reform introducing a 
multi-pillar system that includes a mandatory, fully funded pillar if the deficit has declined substantially 
and continuously and has reached a level that comes close to the reference value. Since the 2007 general 
government deficit was below the 3%-reference value there is no need to consider the application of this 
Article. 
The most comprehensive and specific attempt at expenditure reform so far, proposed in 2003 and aimed 
at reducing public expenditure on social protection, public administration and state aids. Among other 
things,  the  Hausner  plan  replaced  annual  indexation  with  an  indexation  after  cumulated  inflation 
exceeds 5% or every three years (whatever comes first). 

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In 2009, the general government deficit ratio is expected to rise marginally to 2.6% of GDP 
according  to  the  spring  2008  Commission  forecast,  which  is  based  on  the  no-policy-change 
assumption. The March 2008 convergence programme, which assumes the implementation of 
some deficit-decreasing measures that remain to be specified, envisages a general government 
deficit of 2.0% of GDP. 

The  spring  forecast  projects  the  structural  deficit  to  widen  by  approximately  ¼  percentage 
point of GDP in 2008 but to narrow by about ⅓ percentage point in 2009, resulting from the 
improvement in the labour market stimulated by the cuts in the tax wedge14. 

The  main  goal  of  the  budgetary  strategy  presented  in  the  March  2008  convergence 
programme  is  to  reach  the  MTO,  a  structural  deficit  of  1%  of  GDP,  by  2011,  i.e.  one  year 
after  the  end  of  the  programme  period.  The  budgetary  adjustment  is  expenditure-based  and 
back-loaded to 2009 and 2010. 

4. 

DEBT DEVELOPMENTS AND PROJECTIONS 

After  having  reached  its  peak  of  47.6%  of  GDP  in  2006,  the  debt  ratio  appears  to  be  on  a 
declining path. Significant debt reduction was achieved in 2007, when the ratio decreased by 
almost 2½ percentage points to 45.2% of GDP mainly thanks to high nominal GDP growth 
but also to the appreciation of the złoty. Gross debt is projected to fall more slowly this year 
and next to about 44% of GDP in 2009, according to the spring 2008 forecast under the no-
policy-change assumption. 

5. 

CONCLUSIONS 

The general government deficit decreased from 6.3% of GDP in 2003 to 2.0% in 2007, below 
the  3%  of  GDP  reference  value.  The  deficit  reduction  in  2007  mainly  reflected  higher 
economic  growth,  which  together  with  expenditure  restraint  (partly  due  to  an  incomplete 
execution of investment plans) reduced the expenditure ratio compared to budget plans. The 
revenue  ratio  came  in  close  to  target,  with  windfall  revenues  from  favourable  economic 
conditions  offset  by  direct  tax  cuts  and  underperformance  in  other  revenue  categories.  The 
structural  balance,  i.e.  the  cyclically-adjusted  balance  net  of  one-off  and  other  temporary 
measures, improved by about 1½ percentage point of GDP, well above the fiscal effort of at 
least  0.5  percentage  point  recommended  by  the  Council.  According  to  the  Commission 
services’ spring 2008 forecast, the headline deficit is expected to increase to 2.5% of GDP in 
2008  and,  on  a  no-policy  change  basis,  to  2.6%  in  2009.  This  indicates  that  the  deficit  has 
been brought below the 3% of GDP ceiling in a credible and sustainable manner. 

General  government  gross  debt  declined  from  47.6%  of  GDP  in  2006  to  45.4%  in  2007, 
below the 60% of GDP reference value. According to the Commission services’ spring 2008 

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There seems to be a particularly high potential for reducing the shadow economy and stimulating labour 
activity in Poland, as suggested by the significant difference between the registered unemployment rate 
and  the  unemployment  rate  from  labour  force  surveys  (about  3 percentage  points  in  the  beginning of 
2008). Furthermore, Poland has one of the lowest activity rates in the EU (63½% compared to almost 
71% in the EU in the second half of 2007), especially for those aged 55+. Moreover, the steep increase 
in corporate-income and small-business personal-income tax revenues in the recent years in Poland may 
be partly explained with a better compliance following a reduction of initially high tax rates. 

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forecast, the debt ratio is expected to fall further to around 44% of GDP by 2009 (on a no-
policy change basis). 

From an overall assessment, it follows that the excessive deficit situation in Poland has been 
corrected. Accordingly, the Commission recommends to the Council to abrogate its decision 
on the existence of an excessive deficit in Poland. 

Table 2: Budgetary developments, 2003-2009 
% of GDP, unless indicated 
otherwise 

2004 

2003 

2005 

2006  2007 

2008 

2009 

COM CP(2)  COM(3)  CP(2) 

General government balance 

−6.3 

−5.7 

−4.3 

−3.8 

−2.0 

−2.5 

−2.5 

−2.6 

−2.0 

Total revenues 

38.4 

36.9 

39.0 

40.0 

40.4 

40.1 

40.0 

39.7 

39.2 

Total expenditure 

44.6 

42.6 

43.3 

43.8 

42.4 

42.6 

42.5 

42.3 

41.2 

Of which:  − interest expenditure 

3.0 

2.8 

2.8 

2.7 

2.6 

2.7 

2.3 

– gross fixed capital formation 

3.3 

3.4 

3.4 

3.9 

4.1 

4.5 

5.2 

Primary balance 

−3.3 

−2.9 

−1.5 

−1.1 

0.6 

0.2 

−0.2 

One-off and temporary measures 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

2.7 

4.8 

0.1 

0.0 

2.3 

5.0 

0.3 

0.0 

Structural balance(1) 

−5.9 

−5.9 

−4.2 

−4.0 

−2.5 

−2.7 

−2.8 

−2.3 

−1.9 

Structural primary balance(1) 

−2.9 

−3.1 

−1.4 

−1.3 

0.1 

0.0 

−0.5 

Pm 

Real GDP growth (%) 

3.9 

5.3 

3.6 

6.2 

6.5 

5.3 

5.5 

0.3 

5.0 

0.4 

5.0 

Pm 

Output gap 

−1.0 

0.4  −0.4 

0.6 

1.2 

0.5 

0.7 

−0.7 

−0.2 

(1) 
(2) 

Cyclically-adjusted (primary) balance excluding one-off and temporary measures. 
Cyclically-adjusted and structural balances and output gaps according to the programme as calculated 
by Commission services on the basis of the information in the programme. 
No-policy change assumption. 

(3) 
Sources:  Commission  services’  spring  2008  forecast  (COM)  and  March  2008  update  of  the  convergence 

programme (CP). 

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Recommendation for a  

COUNCIL DECISION 

abrogating Decision 2005/183/EC on the existence of an excessive deficit in Poland 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 104(12) thereof, 

Having regard to the recommendation from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

By  Council  Decision  2005/183/EC  of  5  July  200415,  following  a  recommendation 
from the Commission in accordance with Article 104(6) of the Treaty, it was decided 
that  an  excessive  deficit  existed  in  Poland.  The  Council  noted  that  the  general 
government deficit was 4.1% of GDP in 2003, above the 3% of GDP Treaty reference 
value, while general government gross debt stood at 45.4% of GDP, below the 60 % of 
GDP Treaty reference value. The Council decision stated that the deficit and the debt 
figures  would  have  to  be  adjusted  upward  if  the  funded  pension  schemes  were 
excluded  from  the  general  government  sector  following  the  Eurostat  decision  on  the 
classification of the funded pension schemes16. 

On  5  July  2004,  in  accordance  with  Article 104(7)  of  the  Treaty  and  Article  3(4)  of 
Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the 
implementation  of  the  excessive  deficit  procedure17,  the  Council  made,  based  on  a 
recommendation from the Commission, a recommendation addressed to Poland with a 
view  to  bringing  the  excessive  deficit  situation  to  an  end  by  2007  at  the  latest.  The 
recommendation was made public. 

On  28  November  2006, 
the  Council  decided  under  Article  104(8),  on  a 
recommendation  from  the  Commission,  that  action  taken  until  then  by  the  Polish 
authorities  was  inadequate18.  On  27  February  2007,  the  Council  issued  a  new 
recommendation  under  Article  104(7),  on  a  recommendation  from  the  Commission, 
confirming  the  2007  deadline  for  the  correction.  The  recommendation  was  made 
public. 

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18 

OJ L 62, 9.3.2005, p. 18. 
Eurostat News Releases No 30/2004 of 2 March 2004 and No 117/2004 of 23 September 2004. 
OJ  L  209,  2.8.1997,  p.  6.  Regulation  as  amended  by  Regulation  (EC)  No  1056/2005  (OJ  L  174, 
7.7.2005, p. 5). 
OJ L 414, 30.12.2006, p. 81. 

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(4) 

(5) 

In accordance with Article 104(12) of the Treaty, a Council Decision on the existence 
of  an  excessive  deficit  is  to  be  abrogated  when  the  excessive  deficit  in  the  Member 
State concerned has, in the view of the Council, been corrected. 

In  accordance  with  the  Protocol  on  the  excessive  deficit  procedure  annexed  to  the 
Treaty, the Commission provides the data for the implementation of the procedure. As 
part  of  the  application  of  this  Protocol,  Member  States  are  to  notify  data  on 
government  deficits  and  debt  and  other  associated  variables  twice  a  year,  namely 
before  1  April  and  before  1  October,  in  accordance  with  Article  4  of  Council 
Regulation (EC) No 3605/93 of 22 November 1993 on the application of the Protocol 
on  the  excessive  deficit  procedure  annexed  to  the  Treaty  establishing  the  European 
Community19. 

(6) 

Based  on  data  provided  by  the  Commission  (Eurostat)  in  accordance  with  Article 
8g(1)  of  Regulation  (EC)  No  3605/93  following  the  notification  by  Poland  before  1 
April  2008  and  on  the  Commission  services’  spring  2008  forecast,  the  following 
conclusions are warranted: 

– 

– 

– 

the  general  government  deficit  was  reduced  from  3.8%  of  GDP  in  2006  to 
2.0% of GDP in 2007, which is below the 3% of GDP deficit reference value. 
This compares with a target of 3.4% of GDP set in the November 2006 update 
of the convergence programme, 

the much better 2007 deficit outturn compared to the target was supported by 
much  higher  real  GDP  growth  than  assumed  in  the  November  2006 
convergence  programme.  In  addition,  relative  to  GDP,  the  government  spent 
less  on  social  transfers  (due  to  lack  of  indexation  in  2007),  subsidies, 
investment and compensation of employees. Overall, total expenditure was by 
1.5  percentage  point  lower  than  planned  in  the  November  2006  convergence 
programme.  The  improvement  in  the  structural  balance  (i.e.  the  cyclically-
adjusted balance net of one-off and other temporary measures) is estimated at 
1½ percentage point of GDP in 2007, 

with  lower  GDP  growth  than  in  2007,  the  spring  2008  forecast  projects  the 
deficit  to  increase  in  2008  to  2.5%  of  GDP,  but  remain  below  the  reference 
value, driven mainly by cuts in social contributions, personal income tax relief 
and an increase of social transfers together with higher investment. This is the 
same  as  the  official  deficit  target  set  in  the  March  2008  update  of  the 
convergence  programme.  For  2009,  the  spring  forecast  projects  the  deficit  to 
broadly stabilise on a no-policy change basis. This indicates that the deficit has 
been  brought  below  the  3%  of  GDP  reference  value  in  a  credible  and 
sustainable manner, 

– 

nonetheless,  the  structural  balance  is  projected  to  deteriorate  slightly  by  ¼ 
percentage point of GDP in 2008 and, on a no-policy change basis, improve by 
about ⅓ percentage point in 2009. This has to be seen against the need to make 

19 

OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 
22.12.2005, p. 1). 

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progress towards the medium-term objective (MTO) for the budgetary position, 
which for Poland is a structural deficit of 1% of GDP, 

– 

government  debt  declined  from  47.6%  of  GDP  in  2006  to  45.2%  in  2007. 
According to the spring 2008 forecast, the debt ratio is projected to remain well 
below the 60% of GDP threshold and fall further to around 44% by end-2009. 

(7) 

In  the  view  of  the  Council,  the  excessive  deficit  in  Poland  has  been  corrected  and 
Decision 2005/183/EC should therefore be abrogated. 

HAS ADOPTED THIS DECISION: 

From an overall assessment it follows that the excessive deficit situation in Poland has been 
corrected. 

Article 1 

Decision 2005/183/EC is hereby abrogated. 

Article 2 

Article 3 

This Decision is addressed to the Republic of Poland. 

Done at Brussels, 

For the Council 
The President 

EN 

10 

   EN