On January 13, 2025, the Journal of Laws announced the publication of the Act on the Fiscal Council, a significant legislative development aimed at strengthening the oversight of public finances in Poland. This act will establish an independent institution, the Fiscal Council, designed to enhance the transparency and accountability of the nation’s fiscal policies.
A Response to EU Regulations
The creation of the Fiscal Council is driven by compliance with European Union regulations that require member states to establish independent fiscal institutions. Notably, Poland stands as the sole EU country lacking such an oversight body, making this initiative a crucial step towards aligning with EU standards.
Operational Timeline and Structure
The Fiscal Council, which will begin its operations in 2026, serves as an advisory and expert body. It will hold its first opinion on the draft state budget for 2027. To prepare for this, the Council Office will be established in 2025, with members being appointed shortly thereafter.
Key Responsibilities of the Fiscal Council:
The Council will focus on several core functions, including:
- Evaluating macroeconomic forecasts that inform the development of the draft budget act and medium-term structural plans.
- Analyzing the Budget Act’s compliance with both national and EU fiscal regulations.
- Assessing the coherence and effectiveness of the overall budgetary framework.
The Fiscal Council will be tasked with issuing its opinions within a strict timeframe of 14 days following the submission of budget drafts. Importantly, the Minister of Finance will be mandated to adhere to the Council’s recommendations or provide a detailed explanation should non-compliance occur within a two-month period.
Compositions and Qualifications
Comprising seven independent experts, the Fiscal Council will include nominees from various sectors, including:
- The President of the Republic of Poland
- The President of the Supreme Audit Office (NIK)
- The Minister of Finance
- Representatives from the Social Dialogue Council, among others.
Candidates for Council membership will face stringent criteria for independence and expertise, including:
- A master’s degree and extensive experience in fields such as public finance or macroeconomics.
- A clean slate, with no recent managerial state roles or lobbying activities within the past four years.
The Chairperson role will require even higher qualifications. The selection process will mandate public recruitment efforts by each proposing institution, followed by a thorough vetting system where a shortlist of qualified candidates will undergo public hearings. The final appointments will occur through a joint agreement by the Sejm and the Senate.
The establishment of the Fiscal Council heralds a new era of enhanced scrutiny over public finances in Poland, aligning the country more closely with EU standards while promoting fiscal responsibility and transparency.
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