Poland Expects Public Debt to Top Threshold Triggering Austerity

Poland's public debt is projected to exceed a critical threshold in 2028, which would mandate the implementation of austerity measures. This development poses challenges for the government's plans to increase defense spending without implementing unpopular cuts to welfare programs. The article notes that the surge in defense spending, driven by Poland's response to the Russian invasion of Ukraine, has put a strain on the country's fiscal resources. As a result, the government must navigate the delicate balance between boosting military capabilities and maintaining social welfare programs. The impending breach of the public debt threshold could force the government to implement austerity measures, which could include spending cuts or tax increases. This could be politically unpopular and could potentially impact the government's ability to maintain its current level of social welfare support. Overall, the article highlights the difficult choices facing the Polish government as it seeks to balance its defense and social welfare priorities in the face of rising public debt.