Gov't growth target in jeopardy without reforms, says Kolodko

Finance Minister Grzegorz Kolodko piled pressure on the government yesterday to overhaul its fiscal policies, saying the country's 3.5% growth target in 2003 could be threatened without bold reforms. Kolodko reiterated that cuts in the Central Bank's interest rates were also crucial for reviving the economy. "If on the one hand, monetary policy does not change and, on the other, an overhaul of public finances is not launched with full steam, the growth target of 3.5% could be under threat," national news agency PAP quoted Kolodko as saying. Kolodko's statement could signal his determination to push ahead with politically difficult spending cuts, which could face stiff opposition from many politicians in the ruling SLD coalition. The package will include an overhaul of taxation which, Kolodko has already said, would scrap most tax breaks and possibly cut tax rates. "And it has been kept a secret, also within the ministry," one source close to the Finance Ministry said. (Reuters) M.M.