Polish government’s dispute with the EU can cost investors a lot
12:42
So far, the ruling of the Constitutional Tribunal, confrontational against the EU, has only moderately translated into the weakening of the zloty and treasury bonds, however, according to some experts, the aggravation of the conflict may deepen the sell-off not only on this market but also on the WSE.
Funds from the Reconstruction Fund are currently frozen. While investors do not believe they will lose them, experts are divided as to whether such a threat is real. And further aggravation of the conflict between Poland and the EU threatens to deepen the depreciation of the zloty and Polish treasury bonds. Such a scenario would hit the stocks listed on the WSE, where there has been a boom so far.
The reactions to the ruling of the Constitutional Tribunal and the MPC's rate hike overlapped with the change in the situation on global financial markets. The economic situation in the main stock markets is deteriorating with the arrival of forecasts of weakening the post-pandemic recovery, and increases in gas, coal, and CO2 emission allowances in the EU are threatening the outbreak of an energy crisis.
