Direction of economic policy uncertain
"It will be very difficult for the government to secure a majority for any kind of a budget for 2005," said Jeremi Mordasewicz, an expert at the Polish Confederation of Polish Employers (PKPP). His words are echoed by many executives who worry that in the existing political situation it may prove impossible to guarantee the sort of stability that is essential to buttress the economic recovery under way.
Little is yet known of the economic plans that the government may have in store, though commentators tend to find some personnel decisions a little reassuring. The prime minister himself was the first finance minister and deputy prime minister in charge of economic policy in Leszek Miller's cabinet, and he enjoyed largely good relations with business. Furthermore, he has also named several ministers who are well regarded among business circles.
Belka is thought to have made the retention of Jerzy Hausner as economy and labour minister and deputy prime minister a condition for his taking the job, and he has appointed Jacek Socha, chairman of the Securities and Exchange Commission (KPWiG), to the hot seat of state treasury minister.
Socha's appointment in particular was welcomed, as the new minister has long been a vocal proponent of accelerating privatization through stock exchange listings. Wiesław Rozłucki, president of the Warsaw Stock Exchange, suggested that the appointment should help speed up the privatization process.
"What I expect is focus on the professional side of privatization, rather than on its political aspects," Rozłucki says. The minister himself seemed to be sending mixed signals about his intentions, saying that "maximizing revenues should not be the guiding light of privatization," but also that this year's zł.8.8 billion target was "extremely high," although it was "essential to meet it due to budgetary constraints."
What also worried some commentators was a government spokesman's remark that the government's priority would be "to improve the quality of the management of state-owned companies." Privatization failed to make the list of priorities announced after the government's first meeting. The PKPP's Mordasewicz said he "disagreed strongly with such a wording," although adding that "he hoped that this was a slip of the tongue."
Analysts also welcomed the government's commitment to cutting next year's budget, though saying that its ability to do so was in doubt. Rafał Antczak, an analyst at the CASE Foundation think tank, said, "It is eminently doable, through raising taxes. There are indications that this might be the element of the Hausner plan that survives." If so, there is little that business will have to cheer about in the first cabinet led by an economist since 1989.
Little is yet known of the economic plans that the government may have in store, though commentators tend to find some personnel decisions a little reassuring. The prime minister himself was the first finance minister and deputy prime minister in charge of economic policy in Leszek Miller's cabinet, and he enjoyed largely good relations with business. Furthermore, he has also named several ministers who are well regarded among business circles.
Belka is thought to have made the retention of Jerzy Hausner as economy and labour minister and deputy prime minister a condition for his taking the job, and he has appointed Jacek Socha, chairman of the Securities and Exchange Commission (KPWiG), to the hot seat of state treasury minister.
Socha's appointment in particular was welcomed, as the new minister has long been a vocal proponent of accelerating privatization through stock exchange listings. Wiesław Rozłucki, president of the Warsaw Stock Exchange, suggested that the appointment should help speed up the privatization process.
"What I expect is focus on the professional side of privatization, rather than on its political aspects," Rozłucki says. The minister himself seemed to be sending mixed signals about his intentions, saying that "maximizing revenues should not be the guiding light of privatization," but also that this year's zł.8.8 billion target was "extremely high," although it was "essential to meet it due to budgetary constraints."
What also worried some commentators was a government spokesman's remark that the government's priority would be "to improve the quality of the management of state-owned companies." Privatization failed to make the list of priorities announced after the government's first meeting. The PKPP's Mordasewicz said he "disagreed strongly with such a wording," although adding that "he hoped that this was a slip of the tongue."
Analysts also welcomed the government's commitment to cutting next year's budget, though saying that its ability to do so was in doubt. Rafał Antczak, an analyst at the CASE Foundation think tank, said, "It is eminently doable, through raising taxes. There are indications that this might be the element of the Hausner plan that survives." If so, there is little that business will have to cheer about in the first cabinet led by an economist since 1989.
