On 29 April 2025, the Council of Ministers adopted the first Annual Progress Report on the implementation of the "Medium-Term Fiscal-Structural Plan for 2025-2028".

The Member States of the European Union are obliged to submit an annual progress report on the implementation of their medium-term fiscal-structural plans, by 30 April of each year. In accordance with the guidelines of the European Commission, the latest Annual Progress Report presents the situation in the current year and in previous years covered by the "Medium-Term Fiscal-Structural Plan for 2025-2028", which was adopted by the Council of Ministers on October 8, 2024.

The expenditure path, which is a key element of the Plan, has been positively assessed by the European Commission¹. The Ecofin Council endorsed this trajectory on 21 January 2025 and indicated that in order to eliminate the excessive deficit it is necessary to adhere to the expenditure growth rate set out in the Plan².

The primary purpose of the Report is to provide information that will enable the Commission to assess the implementation of the Council recommendations. The European Commission assessment concerns only compliance with the expenditure path recommended by the EU Council and is made on the basis of the outturn data for the previous year.

The budget part of the Report (Chapter I) contains an estimate of the expenditure growth rate together with current information on measures supporting the reduction of the excessive deficit, in particular those included in the Budget Act and the Plan. 

The structural part (Chapter II), prepared by the Ministry of Economic Development and Technology in cooperation with the ministries, primarily presents the progress in the implementation of the reforms and investments presented in the Plan to implement the common priorities of the EU and the recommendations of the EU Council for Poland issued during the European Semester.

On 8 October 2024, the Council of Ministers adopted The Medium-Term Fiscal-Structural Plan for the years 2025-2028 (Plan).

In line with the EU legislation, which entered into force in April 2024, every 4 years Member States should submit the medium-term fiscal-structural plans to the Council of the European Union and the European Commission and publish it³. The Plan has been drawn up on the basis of the EU legislation and the European Commission’s guidelines⁴. It uses the draft budget act for 2025 and the information available until 30 September. 

The Plan presents the expenditure path, which provides for a gradual and growth-friendly reduction of the nominal general government deficit within 4 years. As a result, it should be possible to reduce the deficit to below 3% of GDP in 2028, thus exit the excessive deficit procedure (EDP) in 2029 and bring the general government debt below 60 % of GDP in the medium term.

In contrast to the budget act, the Plan is multi-year. If the Plan’s expenditure path is positively assessed by the European Commission, it will be recommended to Poland by the EU Council. Implementation of the Plan will be provided through annual progress reports (in April) and subsequent budget acts until 2028.

¹ Council Recommendation on the approval of the national medium-term fiscal-structural plan of Poland
² Council Recommendation with a view to bringing an end to the situation of an excessive deficit in Poland

³ Regulation (EU) 2024/1263 of the European Parliament and of the Council on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97
⁴ The European Commission’s guidelines of 21 June on information requirements for medium-term fiscal-structural plans