It is reported that the transfers from the Union made it possible for the Polish government to minimize effects of the crisis of 2008-2010. They also caused a complete lack of any public finance reforms in Poland. The increase in the Polish debt in the last 3 years from PLN 529 billion in the end of 2007 to PLN 778 billion in the end of 2010 is a reflection of policy crash of the Polish government.

The Polish deficit was one of the highest in Europe in 2010, it was higher than in Iceland and just a bit lower than the deficit of Greece. Apart from it, Poland is one of the EU member states with the highest budget deficits (higher than 6 percent in 2010), which increased their deficit between 2009 and 2010. While in 2010 Greece decreased its deficit from more than 15% in 2009 to about 8% of GDP, Poland increased its deficit from 7.1% to almost 8% of GDP.

It is obvious that budget expenditures influence the GDP, however it is a short term dependency, in the long term the results are just the opposite, the means that have been spent by the state would have been much better allocated by the market, although they would not translate so fast in the demand effect. For the ineffective increase in the GDP in the last three years, Poland will pay all the costs concern the debt increased by PLN 250 billion.

(Sourced from www.changevalue.biz)