Sunday 17 February 2013

EU budget deal positive for Poland’s rating – Moody’s

Poland can consider the outcome of the EU budget summit to be a credit positive factor, rating agency Moody's wrote in a statement.

On Feb.8, the European Council agreed on a budget for 2014-20 that reduces the European Union’s (EU) spending by €35.2 billion, or 3.4% in real terms, compared with the current 2007-13 multiannual budget.

Despite the cuts, Poland (A2 stable) will collect more funding from Brussels in the coming years, receiving a total of €105.8 billion (26.6% of 2013 GDP), up from €101.5 billion in 2007-13, even as other EU member states will be allocated fewer funds.

The increase in EU financing is credit positive because it will support the Polish government’s efforts to expand infrastructure investment in order to stimulate a slowing economy and boost long-term economic growth.

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