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Lower house re-elections?

Poland's outgoing president, Aleksander Kwaœniewski, said last week that a minority government looked very likely after coalition talks between two center-right parties broke off this week. All signs point "to a Law and Justice government, so a minority cabinet," Kwaœniewski told reporters.

Asked about the impact of the rocky cabinet-building on financial markets, Kwaœniewski said: "There are no reasons for panic. The Polish economy is in good shape and we will soon have a new government."

However Kwaœniewski was quoted as saying last Thursday that the failure of center-right parties to form a ruling coalition may lead to early elections.

The conservative Law and Justice (PiS) and pro-business Civic Platform (PO) emerged the winners of last month's general election but broke off their coalition talks last Wednesday due to disagreements over economic policy and top posts.

"Early elections are bad for Poland but in this situation they are a real option," Kwaœniewski was quoted as saying.

Kwaœniewski is charged with calling new elections if no party manages to form a government for a prolonged time. The President, who will stay in office until December 23, said he could call such elections for January 15 next year. Conservative Prime Minister-designate Kazimierz Marcinkiewicz has three chances to win a parliamentary confidence vote. His first chance expires on November 2.

Marcinkiewicz said he still hoped to reach a deal with PO but would not rule out a minority government. Such a government would have to be supported by populist parties to win a confidence vote in parliament. (Reuters)

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