8/11/2006

A Polish NGO has decided to set up an office in Britain to provide help to those Poles who have not been able to find work and lodgings there. In resp

Leftist party Self-Defence on Wednesday renewed a pledge to back a 30 billion zloty ($9.95 billion) cap for the 2007 budget deficit, but said the fruits of Poland’s economic upturn must go to society’s worst-off. Launching a push for more focus on welfare in upcoming budget deliberations, party leader Andrzej Lepper revived much of the rhetoric which unsettled markets when Self-Defence joined the ruling conservatives as a junior coalition partner in May. But he made no new demands for spending, and said that the party would honour its commitment to back the ruling conservatives’ policy to keep the deficit limit.

“There is no reason why the deficit should be above 30 billion,” Lepper told a joint news conference with the party’s Labour Minister Anna Kalata. “(But) higher economic growth means that we can have more funds for the health service, for welfare aid. We maintain that with time we will return to a discussion of a guaranteed welfare minimum. The minimum wage must also be higher.”

The economy is expected to grow by around 5% this year, faster than 4.3% assumed in this year’s budget bill, and analysts expect growth next year will also top the 4.6% in the 2007 budget plan. While all but abandoning welfare reforms needed to ensure lasting health of public finances, the ruling right has stuck to its promise to keep the deficit figure steady in coming years. Lepper last month threatened to quit the coalition and trigger early elections unless more social spending was added to the 2007 budget plan, which the cabinet must submit to parliament by the end of September.

But analysts say Self-Defence is also keen to use a first stint in government to promote the party as a mainstream force. “Lepper wants to build an image as a statesman,” said Jacek Raciborski, sociology professor at Warsaw University. “But he is also walking a tightrope because his electorate is at heart suspicious of the political elite.” Lepper came to fame by staging sometimes violent anti-EU, anti-reform protests in the 1990s but moderated his image after last September’s general elections to become an acceptable partner for the conservative Law and Justice party. With one eye on local elections later this year, he has demanded a 500 million zloty subsidy in next year’s budget for farmers’ crop insurance. On Wednesday he said his party would continue to fight for its electoral programme, listing ideas including a turnover tax on businesses as well as generally higher benefits. Reuters

“We may have a fiery discussion on the budget,” said Grzegorz Maliszewski, economist with Bank Millennium in Warsaw. “But although Lepper may make some disturbing noises, the 30 billion cap looks secure. The key is that Law and Justice stick to their guns on capping the deficit.” Reuters

Source:.financialexpress.com



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