Electoral Considerations To Slow Reform

The July 4 election of Bronislaw Komorowski was a positive development for Poland's political and economic outlook. Indeed, while late-president Lech Kaczynski often proved a roadblock to the legislative agenda of the Civic Platform (PO) led coalition government, the presidency of Komorowski, who hails from the PO, provides an opportunity for Prime Minister Donald Tusk to deliver on his privatisation and budget consolidation plans. That said, we expect the government to move cautiously on the implementation of reforms, as it will seek to maintain electoral support in the run-up to this year's local elections and the November 2011 parliamentary elections.

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