peterweg
13 Oct 2012
News / Poland's Economy Is Booming! The EU's Success Story? [711]
blogs.ft.com/beyond-brics/2012/10/12/poland-bye-bye-austerity/
Poland: bye bye austerity
Donald Tusk addressed the Polish parliament on Friday morning, promising not blood, sweat and belt-tightening but massive new spending programmes aimed at boosting growth.
While stressing that he did not want to derail progress on reducing the deficit and public debt, Tusk promised that spending on new highways, rail modernisation, power plants, a natural gas terminal and new pipelines would be ramped up starting in 2013. The total spending for the next few years comes to about 220bn zlotys ($70bn), although much of what Tusk detailed has already been committed under previous spending plans.
Stressing growth over fiscal tightening seems to be having very little negative impact on markets. Poland remains one of the fastest growing EU countries, and one of the few where public debt ratios are falling. Earlier this week, yields on Polish five-year bonds hit a record low and the cost of insuring Polish debt fell below that of France, says Jacek Rostowski, the finance minister.
Donald Tusk addressed the Polish parliament on Friday morning, promising not blood, sweat and belt-tightening but massive new spending programmes aimed at boosting growth.
While stressing that he did not want to derail progress on reducing the deficit and public debt, Tusk promised that spending on new highways, rail modernisation, power plants, a natural gas terminal and new pipelines would be ramped up starting in 2013. The total spending for the next few years comes to about 220bn zlotys ($70bn), although much of what Tusk detailed has already been committed under previous spending plans.
Stressing growth over fiscal tightening seems to be having very little negative impact on markets. Poland remains one of the fastest growing EU countries, and one of the few where public debt ratios are falling. Earlier this week, yields on Polish five-year bonds hit a record low and the cost of insuring Polish debt fell below that of France, says Jacek Rostowski, the finance minister.
blogs.ft.com/beyond-brics/2012/10/12/poland-bye-bye-austerity/