Poland might increase the issuance of bonds in the primary market amid the protracted lack of agreement among European Union member states on the next seven-year budget, Polish Prime Minister Mateusz Morawiecki said on Friday
WARSAW (Pakistan Point News / Sputnik - 04th December, 2020) Poland might increase the issuance of bonds in the Primary market amid the protracted lack of agreement among European Union member states on the next seven-year budget, Polish Prime Minister Mateusz Morawiecki said on Friday.
"The government is bracing for such a situation. We take this into consideration," Morawiecki said during a visit to the Polmet Display company, a Polish producer of metal shelves for retail stores and offices, when asked about the possibility of issuing more bonds if EU member states fail to agree on a new budget.
The prime minister claimed that Poland was capable of finding ways to support its investments without external European funds. Morawiecki referenced a local investments program that the Polish government launched in the spring, earmarking billions of zlotys from national reserves for various kinds of social infrastructure investments, such as renovation of schools and gas pipelines.
"We are preparing a program that will be both an investment program and a program for the implementation of projects already underway. We keep in mind such a possibility [issuing more bonds] so that these projects do not stop," the prime minister said.
EU member states have still not reached a consensus on the bloc's next long-term budget, expected to become its largest ever, incorporating shared funds for COVID-19 economic recovery.
Poland, as well as Hungary, vetoed the package due to the fact that it makes the access to funds conditional upon respecting "the rule of law." Warsaw and Budapest believe this pertains to immigration and other issues they and Brussels normally take different stances on. Hungarian Prime Minister Viktor Orban has described the budget's conditions a "blackmail" of member states opposed to migration.
In late November, European Commission President Ursula von der Leyen called on countries opposed to the budget's mechanism to seek clarifications from the European Court of Justice and not delay the important financial facility.
