EC: No significant concern over Poland’s economy

The European Commission (EC) has decided that there is no need to investigate further into macroeconomic imbalances in the Polish economy, in contrast to 18 other EU countries which will be looked at in more detail.

The Alert Mechanism Report 2016 used a scoreboard of selected indicators to screen EU countries for potential economic imbalances, with countries found to have potential imbalances then analysed by a further In-Depth Review.

“Overall, the economic reading points to some issues related to the external position but with contained risks. Therefore, the Commission will at this stage not carry out further in-depth analysis,” the EC wrote regarding Poland.

Poland is one of eight EU states that will not receive further surveillance or an In-Depth Review, though the possibility of macroeconomic imbalances arising in the near future has not been ruled out.

The report noted that Poland has stable private sector debt, falling unemployment, an acceptable level of public debt, and an improvement in the current account balance partially due to stronger merchandise export.

“The [Polish] banking sector remains well capitalised, liquid and profitable, despite a sizable stock of loans denominated in foreign-currency,” the report added.

The European Commissioner for Economic and Financial Affairs, Pierre Moscovici, stated in a press conference that the EC will be monitoring Bulgaria, France, Croatia, Italy and Portugal for serious macroeconomic imbalances.

Moscovici announced that another 13 other EU countries will also be investigated, though these are thought to have less serious imbalances.

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