Finance Minister candidate Belka pledges major spending cuts, no import tax

Marek Belka, the leading candidate to become the next Finance Minister should the Democratic Left Alliance (SLD) as expected win the forthcoming elections, has said that he will keep next year's budget deficit at below zl.40 billion, primarily by enacting tough spending cuts. Belka also expects some tax increases to be introduced, but they would account for only a quarter of the zl.50 billion the government needs to keep the deficit under control. The remainder would be saved through spending cuts. Belka promised that the controversial import tax would not be introduced. He went on to call for reform of the rigid labor code, to be carried out in cooperation with the trade unions, in order to stimulate employment in small and medium-sized firms. Belka insisted that the SLD leadership fully understands the need to make deep reforms and not "ad-hoc budget cuts". He added, however, that party leader Leszek Miller still had to convince backbenchers of the need to tackle unpopular changes, which will be felt by many Poles. Belka said he believes that these moves, together with the lower interest rates expected to result from better cooperation between the government and the Monetary Policy Council (RPP), should allow Poland to return to 4% to 4.5% GDP growth in 2003. (Rzeczpospolita, Sept. 15-16, p. B1; Reuters) T.J.