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Central Europe
March 1, 2019 www.intellinews.com I Page 15
“The money for all these pledges is already earmarked in this year’s budget,” Michal Dworczyk, the head of the PM’s office, told the PiS convention during which the party made the announcements.
“Proposed solutions constitute a strong fiscal impulse of around 2% of GDP. They will increase consumption, which will boost economic growth in the second half of the year and in 2020,” Bank Millennium wrote.
“However, the proposed spending plans will deteriorate public finances and expose Poland to the relaunching of the EU’s Excessive Deficit Procedure,” the bank added.
Pro-inflationary spending stimulus is also expected to increase the likelihood of an interest rate increase although the dominating scenario remains that of stable monetary policy until the end of 2020 at least.