Fri Sep 20 08:43:03 UTC 2024: ## EU’s 5 Billion Euro Flood Aid May Not Be Enough for Poland: Finance Minister

**WARSAW** – Polish Finance Minister Andrzej Domanski has acknowledged that the 5 billion euro ($5.6 billion) pledge from the European Union to help Poland recover from devastating floods may not be enough to cover the country’s losses. The floods, the worst to hit central Europe in recent memory, have caused widespread damage in Poland, the region’s main economy. Some analysts estimate the final cost could rival or even exceed the damage caused by the devastating floods of 1997.

While expressing gratitude for the EU’s support, Domanski highlighted the immense scale of the disaster. “We know that the losses are very large, very high, although we do not know the exact number yet,” he said. “So I think that this amount, these 5 billion euros for Poland, is an adequate amount. It does not mean at all that it is an amount sufficient to cover all the losses.”

The minister declined to specify what proportion of the total damage the EU funds would cover, stating that damage assessments are ongoing.

In 1997, massive flooding in southwestern Poland resulted in approximately 12 billion zlotys in damages, which translates to 34 billion zlotys in today’s prices. Economist Slawomir Dudek has pointed out on social media that infrastructure development over the past three decades has amplified the scale of damage in the affected areas. He further suggested that Poland might need to revise its 2024 budget once the final cost of the floods is determined.

Poland’s budget has been strained in recent years due to increased defense spending following Russia’s invasion of Ukraine, the COVID-19 pandemic, and energy price shocks. Warsaw has been tasked by Brussels with reducing its budget deficit to the bloc’s 3% limit in the coming years. Domanski has previously expressed his preference for a four-year deficit reduction plan. “I will fight for this path of fiscal adjustment, that is limiting the deficit in the coming years, to be as gentle as possible, adapted to the exceptional situation in which Poland finds itself,” he stated.

Read More