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Poland delays deficit cut, eyes VAT hike

Poland does not need “radical” measures to bring its public finances back under control, Prime Minister Donald Tusk said on Friday, but he confirmed plans for a temporary hike in value-added tax and a cap on state spending.

Under a long-term financing programme due to be approved next Tuesday, his centre-right government will delay cutting its budget gap to the European Union’s 3 percent of GDP ceiling by a year to 2013 but borrowing needs are seen falling thanks to a planned $18 billion sell-off of state assets.

“We have decided that we need to buy time and that Poland does not need any radical steps,” Tusk told a news conference after a cabinet meeting on Friday called to discuss the plan.

Read more: http://www.forexyard.com/en/news/Poland-delays-deficit-cut-eyes-VAT-hike-selloffs-2010-07-30T143342Z-UPDATE-3