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New rift in government looms as Finance Minster to make policy statement

After ten days of silence, the new Finance Minister Grzegorz Kolodko will finally unveil his economic policies to the Cabinet. However, today's meeting could be a stormy one as Economy Minister Jacek Piechota has threatened to resign if Kolodko proposals were unrealistic. Piechota was immediately warned by the Prime Minister not to talk about resigning, as it might be quickly accepted. Piechota's declaration are probably related to Leszek Miller's Sunday interview on Radio Zet, when he said that the Finance Minister had been told to prepare a plan to help decrease the debts of state-owned companies facing bankruptcy. Later today the public should find out whether Kolodko will propose the devaluation of the zloty, suggest a currency board against the euro, or propose to raise import duties. Economists are speculating that Kolodko might choose this last option if he plans higher budget expenditures without increasing the deficit. However, Labor Minister Jerzy Hausner admitted that the budget deficit might be decreased for 2003, but he excluded the possibility of introducing new import duties. (Gazeta Wyborcza, pp. 1, 2, 18; Rzeczpospolita, pp. A1, B2) M.M.

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