Fiscal Council – international solutions and case of Poland

We have observed persistent political uncertainties in Poland. Part of this uncertainty stems from fiscal policy. Implementing international institutional solutions like the independent Fiscal Council (FC) may lower uncertainty and improve fiscal credibility. The creation of the FC would be also in line with recommendations from international institutions and changes to EU law. We have outlined below some solutions based on academic research and looking at how other countries have tackled this problem. Poland’s authorities would have to decide what kind of competencies and solutions are the most serviceable for Poland’s fiscal policy. The introduction of independent institution in the form of a FC in Poland can be part of the solution to increasing the fiscal discipline and credibility of fiscal policy and to improving its transparency. It may also improve the quality of public debate on fiscal policy and could be positively perceived by investors and rating agencies.