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Governor Says NBP Is Ready To Cooperate With Gov't In Difficult Budget Situation

NBP

Governor Glapinski says that Poland's budget situation is difficult as deficit will be above 5% of GDP, with the country facing EU excessive deficit procedure (EDP), which would constrain fiscal space. He says that the NBP is ready to cooperate with the government in all possible ways in this difficult situation.

  • The Governor flags geopolitical risks, noting that "different things may happen in the summer" - the frontline in Ukraine may get closer to Poland quite quickly, which could force Warsaw to increase defence spending above the current ~4% of GDP. This would further complicate the budget situation.

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