Floods Devastate Central Europe, Spark Budget Changes

Devastating floods in Poland and central Europe are prompting possible changes to the 2024 budget. Finance Minister Andrzej Domanski suggests decisions could be made within weeks. The costs may exceed those of the 1997 floods, with the EU pledging billions for recovery.

Devastating floods in Poland have increased the probability of changes to the 2024 budget, with government decisions expected within two weeks, Finance Minister Andrzej Domanski said on Monday.

The worst floods to hit central Europe in at least two decades have left a trail of destruction from Romania to Poland. Analysts suggest the final cost for the region's biggest economy could match or exceed that of the 1997 floods. "In flood areas, they have deferred tax payments, and a number of factors make the probability of a budget amendment increase," Domanski said to broadcaster Radio Zet.

"We are talking about tens of billions of zlotys. It would not be responsible for me to give exact amounts, but it will be tens of billions of zlotys," Domanski noted regarding the expected damage costs. Last week, European Commission President Ursula von der Leyen announced billions of euros would be made available to help central Europe recover from severe floods.

On Friday, Domanski remarked that the pledge of 5 billion euros ($5.58 billion) from the EU might not be sufficient to cover Poland's losses. (Exchange rate: $1 = 0.8961 euros)

(With inputs from agencies.)