EU Pledges €5 Billion for Poland's Flood Recovery Amid Fiscal Strains

Polish Finance Minister warns the aid may not cover all losses as the region grapples with economic pressures from extreme weather and past crises.

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.