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EU's Barroso urges Poland to continue spending cuts, reforms

European Commission President Jose Barroso urged the Polish government to open up the country's markets and continue to cut spending.

„We have to consolidate the fundamental reforms already under way,” Barroso said in the text of a speech he delivered in Warsaw, Poland yesterday. „Poland, which is today demonstrating vibrant economic dynamism, with a growth rate of 5.8%, must not relax its efforts to correct its budget deficit on a lasting basis.” The European Union on February 7 refused to extend a deadline for Poland to narrow its budget deficit within the EU limit of 3% of GDP, rejecting Polish calls to be given another two years. Poland, the largest of the EU's 10 eastern European members, has exceeded the limit since its accession in 2004. It is expected to stay above the ceiling through 2008, according to EU forecasts. „Action taken to correct the excessive deficit does not appear adequate,” the European Commission, the EU's executive arm, said in a report. Narrowing the deficit is one of the conditions for adopting Europe's common currency. According to the commission, Poland should use current strong economic growth to cut state spending and undertake fiscal reform. (Bloomberg)