Budget draft debates enter final round in Sejm as year-on-year inflation slides

Debates this week on the 2001 budget draft in the lower house of Parliament are expected to result in passage, since the Freedom Union (UW) is expected to provide enough support for a ruling bloc victory. The second round of debates begins today, with a vote on Sunday expected to send the measure to the Senate. There it will be re-worked throughout February, then passed back to the lower house for final approval of any changes. The President cannot veto this final bill. These last few rounds of Parliamentary debate begin amidst somewhat upbeat news on the economy. Inflation is expected to drop to 7% year-on-year in March from December's 8.5%, according to a government statement released yesterday. It also predicted that average year-on-year inflation would amount to roughly 7.5% in the first quarter of 2001, while warning of "very negative side-effects," such as reduced growth and investment, as a result of Poland's high interest rates. Despite recent plummeting inflation, the National Bank of Poland (PNB) has resisted lowering interest rates in the past few months. (Reuters)