Poland’s tax proposals, climate disruptions persist

Poland's latest income and corporate tax proposals reduce the risk of a further widening of the budget deficit next year, but the government is still avoiding the tougher task of tackling a structurally weak fiscal position, leaving medium-term fiscal risks unresolved. Elsewhere, extreme heat and record low water levels in the Danube continue to disrupt electricity generation and damage agricultural yields across Central and Eastern Europe. This is likely to pull the region out of its recent period of food deflation over the coming year.