Riders on the storm

Since the beginning of March the WIG, the main index on the Warsaw Stock Exchange (WSE), has decreased by three percent, the euro-złoty exchange rate rose and is still going up, as is the US dollar against the złoty. And significantly, foreign investors have started paying close attention to the political situation.

"Foreign players are waiting to see what will happen," explains Piotr Kuczyński, Head of Analysis at WGI Dom Maklerski. "It's not even a matter of Balcerowicz staying or leaving anymore. Of course, he's an icon, but it's this idea of setting up an investigative commission for the banks which is far more dangerous and threatening. Until last week indexes were falling slowly because of the global economy. American bonds became very interesting so investors turned their heads west. However, since then it has also been due to political events. Investors have been getting more and more uncomfortable because the government is doing things it is totally ignorant of."

Many analysts agree that for a long time investors have almost completely ignored politics. "They have been investing in countries far further from democracy than Poland, and as long as their existence is safe, all they care about are profits. However, the situation here in Poland is becoming unsafe," said an analyst who wished to remain anonymous.

However, Piotr Szeliga, deputy CEO of the Warsaw Stock Exchange, is less concerned. "You should remember that the market here reacts to facts, not insinuations, and no one knows what is going to happen yet," he says. "Yes, it is true that some investors have left. But it is also true that others have not and some new ones have come. I believe that the bourse will be alright."