SLD unveils economic strategy reversing current belt-tightening plans

The Democratic Left Alliance (SLD), the ex-communists likely to win parliamentary elections in September, presented a broad economic plan on Wednesday, aimed at reviving flagging growth by dropping the present Cabinet's belt-tightening plans. SLD blames the Monetary Policy Council (RPP) for choking growth with high interest rates. According to senior SLD official and former Finance Minister Marek Borowski, the current policy is harming the economy. "The budget deficit has to be reduced, but gradually and over a long horizon," Borowski said. "Inflation also needs to be lowered, but the process of doing so cannot be treated like a race," he added. The tough monetary policy has capped economic growth, which fell to an estimated 2% in the first quarter of 2001 year-on-year, from 6% last year. (Reuters)