Poland 2009 public deficit higher than expected

(WARSAW) - Poland's public deficit rose to 7.2 percent of gross domestic product (GDP) in 2009, well above a previous government estimate pegging it at 6.3 percent, the finance ministry said Monday.

"According to the most recent calculations, the 2009 public deficit stands at 7.2 percent of GDP," finance ministry spokeswoman Maria Hiz told AFP.

A public deficit not exceeding 3.0 percent of GDP is a key criteria for entry into the eurozone, a move Poland committed itself to as part of its 2004 EU accession agreement.

Last year, however, the country of 38.5 million people was forced to drop its 2012 target for adoption of the euro after it became clear the public deficit would significantly exceed the 3.0 percent ceiling.

Officials said in January that they expected the shortfall to be about 6.3 percent for 2009, rising to 7.0 percent this year as the government continues to spend money to keep the economy on track.

Prime Minister Donald Tusk vowed on Friday that Poland would meet the 3.0 percent target by the end of 2012 so as to make joining the eurozone possible by 2015.

Poland's economy growth slowed to 1.7 percent in 2009, official data showed last week, but the ex-communist country was the only member in the 27-state EU to have remained in expansion mode despite the severe global slump.