Page last updated at 10:33 GMT, Monday, 1 December 2008

Poland launches stimulus package

Donald Tusk
Donald Tusk says Poland is determined to adopt the euro.

Poland's government has adopted a stimulus plan worth 91.3bn zlotys ($31.4bn; $20.6bn) to kick-start the economy amid the global slowdown.

It also reduced its growth forecast for 2009 to 3.7%, down 1.1% from the previous outlook.

"The consequences of the global crisis for Poland are not so grave", said Polish prime minister Donald Tusk.

Some of the money will be used for bank guarantees, business loans and developing renewable energy sources.

"It is a stabilisation and development programme, because Poland is a country that is still developing," Donald Tusk said.

He added that Poland was still determined to join the eurozone, saying that having a common currency would have helped in time of crisis.

The plan needs approval from parliament.

Slowdown

Poland's economy has been booming since the country joined the European Union in 2004, with average rates of growth of over 5% per year.

However analysts have expressed fears that central and eastern European states with large current account deficits, such as Poland, could be particularly vulnerable during the credit crisis.

Other European Union countries unveiled similar plans in an effort to reduce the impact of the global economic slowdown.

Italy approved an 80bn euro ($102bn) emergency package, while Spain launched an 11bn euro plan aimed at creating 300,000 jobs.

The European Commission asked that EU countries spend around 1.2% of their GDP to encourage investment and reduce unemployment.



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