Euro 2012 takes toll on city finances

President of Ireland Michael Daniel Higgins (C) is welcomed to Poznan, Euro 2012 host city: photo - PAP/Marek Zakrzewski

According to a survey carried out by the Rzeczpospolita daily covering debts for the year 2011, 165 of Poland's 2479 administrative communes (gminy) exceeded the level of 60 percent in relation to income.

Of the four Euro 2012 host cities, Poznan's rate is the worst, reaching the level of 72 percent against that of its income for 2011.

Next in line was the Baltic city of Gdansk at 64 percent, followed by Wroclaw in Lower Silesia at 63 percent.

Warsaw's communes appear to have balanced their books somewhat better, and have not gone beyond the 60 percent mark.

Nevertheless, such levels are considerably less alarming than the most indebted commune in the country. At Przemkow in Lower Silesia, debts have risen to the level of 130 percent compared to the income of the commune.

Meanwhile, local authorities have stressed that such debts have been incurred so as to take advantage of EU investment programmes.

Poland has spent over 46.3 billion euro (200 billion zloty) of EU funding over the last five years. Projects are often set in motion before full funding has been transferred. (nh)