Recession in Poland one of shallowest in Europe - MinFin

2021-01-12 12:44 update: 2021-01-15, 11:07
Factory Fot. PAP/Andrzej Grygiel
Factory Fot. PAP/Andrzej Grygiel
The Polish economy will have one of the “shallowest” recessions in Europe, the finance minister has claimed.

In an interview for PAP, Tadeusz Koscinski said that the relative strength of the public exchequer has helped the economy, and that Poland will soon get access to new EU funding.

"Despite significant support for the economy, public finances are in relatively good shape, and our recession will be one of the shallowest in Europe," said the minister.

According to the European Commission, the economies of the EU members will shrink, on average, by -7.4 percent, which is almost twice as much as in Poland, where it is expected to fall by -3.6 percent. 

The Polish government has so far allocated over PLN 212 billion (EUR 44.76 billion) for the protection of jobs and the economy, and a further PLN 100 billion (EUR 22.06 billion) has been added to a “financial shield” designed to protect firms from the worst of the recession, said Koscinski.

He added that the Polish plan for combatting the crisis "is positively assessed" by leading foreign institutions, including the Organisation for Economic Cooperation and Development, the World Bank and the International Monetary Fund.

Poland is also due to receive funding from the new EU budget and a special pandemic recovery fund. Koscinski said Poland is working on a partnership agreement in which "we will present how we intend to divide EU funds up within the cohesion policy and how we will spend them. We are speaking here about a sum reaching over EUR 66 billion." 

According to Koscinski, the Ministry of Funds and Regional Policy is drafting a national recovery plan, "which will allow us to use funds from the EU Recovery and Resilience Facility. Here, in turn, we will have EUR 57 billion in grants and loan."

These funds will go into entrepreneurship, infrastructure, environmental protection, digitalisation, energy, science, education and social affairs, said Koscinski, adding that Poland hopes that the first funding will reach the economy this year.

Poland is to start consultations with Brussels on the spending of EU funds this month. (PAP)