Power deal exposes minority weakness

The government has suspended the privatization of the Dolna Odra power plant, just days after signing a draft deal to sell it.

The League of Polish Families (LPR) threatened to withdraw its support for the government if the deal went ahead, and trade unions at the plant also threatened strikes.

Before he called off the deal, Treasury Minister Andrzej Mikosz said the value of the 85-percent stake in Dolna Odra, which has been offered to Spanish firm Endesa, was "much above zł.1 billion." 

LPR was instrumental in scuppering the deal. It reacted to the power-plant negotiations by calling for the immediate dismissal of Minister Mikosz, and LPR leader Roman Giertych said he would "suspend" co-operation on economic issues if the deal went ahead.

The dispute highlights how difficult it will be for the minority government, formed in late October, to implement economic policy when it is forced to rely on fringe groups in parliament. (Reuters)