Miners benefit from the last-chance saloon
The bill attracting the most ire extends miners' rights to early retirement and delays reforms for early retirement for other workers, which could cost taxpayers zł.18 billion by 2010. Among those urging President Kwaśniewski to veto the bill was Prime Minister Marek Belka.
In a statement, Kwaśniewski's office said: "The President decided that miners are a professional group who perform work in most extreme conditions. As a group miners deserve preferential treatment and the conditions for retirement set in the law, in the president's view ... do not violate the constitutional principle of equal treatment."
Miners had earlier marched en masse in Warsaw and gone on a rampage close to the Sejm during which 37 police officers were injured and 69 protestors arrested. The opposition has accused the President of caving in to their demands.
Bond yields rose three basis points and the złoty initially dipped 0.1 percent against the euro before returning to earlier levels in response to the news.
"This law means higher burdens for the budget, so it will be harder to meet the Maastricht criteria and could mean a delay in the adoption of the euro. It's a negative factor for the złoty," said Wojciech Trzepizur at BRE Bank. Prime Minister Belka claimed that the legislation would blow a hole in public finances and undermine recent reforms of the system. Last week also saw Kwaśniewski sign another pension law amendment that replaces pension increases linked to inflation with negotiations between government, employees and employers, which will probably add zł.100-300 million to annual pension expenditure.
The next government is facing the tough task of cutting the budget deficit from 3.7 percent of GDP to below three percent. Critics say these latest moves are just another handout by a government on its way out the door. (Reuters)
In a statement, Kwaśniewski's office said: "The President decided that miners are a professional group who perform work in most extreme conditions. As a group miners deserve preferential treatment and the conditions for retirement set in the law, in the president's view ... do not violate the constitutional principle of equal treatment."
Miners had earlier marched en masse in Warsaw and gone on a rampage close to the Sejm during which 37 police officers were injured and 69 protestors arrested. The opposition has accused the President of caving in to their demands.
Bond yields rose three basis points and the złoty initially dipped 0.1 percent against the euro before returning to earlier levels in response to the news.
"This law means higher burdens for the budget, so it will be harder to meet the Maastricht criteria and could mean a delay in the adoption of the euro. It's a negative factor for the złoty," said Wojciech Trzepizur at BRE Bank. Prime Minister Belka claimed that the legislation would blow a hole in public finances and undermine recent reforms of the system. Last week also saw Kwaśniewski sign another pension law amendment that replaces pension increases linked to inflation with negotiations between government, employees and employers, which will probably add zł.100-300 million to annual pension expenditure.
The next government is facing the tough task of cutting the budget deficit from 3.7 percent of GDP to below three percent. Critics say these latest moves are just another handout by a government on its way out the door. (Reuters)
