Overview

• Poland's Finance Minister Andrzej Domanski stated that the €5 billion aid from the EU might not be sufficient to cover the extensive flood damages.
• The recent floods are the worst to hit Central Europe in at least two decades, causing significant infrastructure damage estimated at $10 billion in Poland and the Czech Republic.
• Poland's budget deficit is forecasted to be 5.7% of GDP in 2024 and 5.5% in 2025, with efforts to reduce it to the EU's 3% limit facing challenges.
• The region's economies are under additional strain from past events, including the COVID-19 pandemic, inflation, and increased defense spending due to Russia's invasion of Ukraine.
• The Czech Republic and Poland have announced immediate emergency fiscal support, but long-term financial stability remains uncertain.