Bauc to remain in post of finance minister
Finance Minister Jaroslaw Bauc has no plans to resign, his spokeswoman Aleksandra Gieros said Friday, responding to financial market rumors that he may quit after his 2002 budget draft was rejected by the cabinet.
"There are no such plans," Gieros told Reuters. "Minister Bauc is patiently waiting until Saturday (Aug. 18) to consult with other ministers, and we are continuing to work on the 2002 budget outline."
Worries over a possible resignation by Bauc rocked the foreign exchange market late on Thursday, but the zloty recovered most of its losses by Friday morning.
Speculation that Bauc might quit surfaced after ministers rejected his 2002 budget draft, which called for sharp spending cuts and tax increases next year in order to stem the budget deficit that could balloon to more than 11% of gross domestic product (GDP).
Cabinet ministers said Bauc's plan was based on overly pessimistic assumptions and not palatable for voters just five weeks before a general election, which the ruling right-wing is set to lose to the popular leftist opposition.
The Finance Ministry is expected to produce another budget proposal after consulting with other ministries.
