Poland's PM dogged by party's populist image

POLAND: It is a tough first week in office for Poland's new prime minister, facing the demands of allies and adversaries and financial markets that doubt his commitment to reforming the economy.

But prime minister Kazimierz Marcinkiewicz insists his minority government is capable of both reducing Poland's 18 per cent unemployment rate and quelling fears his Law and Justice (PiS) party is too populist and profligate to be trusted with power.

He pointed to non-PiS appointees such as foreign minister Stefan Meller, finance minister Teresa Lubinska and health minister Zbigniew Religa in appealing for support for his cabinet, which faces a vote of confidence in parliament on November 10th.

"We need a team of outstanding experts . . . to implement the programme of mending the state and its individual elements," Mr Marcinkiewicz declared.

His first move was to disband the Military Intelligence Service, which conservatives say is dominated by former communists.

But many liberals and financial experts have deep reservations about PiS, after its leaders professed support for the death penalty and a ban on homosexual schoolteachers, and then fell out with the pro-business Civic Platform party.

Most analysts hoped Civic Platform (PO), which came a close second to PiS in last month's election, would join a majority coalition to push through its own plans for welfare reform, adoption of the euro and strict fiscal policy.

But that hope foundered when PiS sought the support of the populist left-wing party Self Defence, which came third in the election, by nominating its controversial leader, Andrzej Lepper, to be a deputy speaker of parliament.

"You can't co-operate with the Civic Platform and Andrzej Lepper at the same time," said PO leader Donald Tusk. Lepper is a former pig farmer who opposed Poland's EU membership, staged violent anti-reform protests and was convicted of slander.

Mr Tusk called on PiS to drop Mr Lepper, and said his party would decide by tomorrow whether to abandon all hope of a coalition with PiS.

Such a move would send a shiver though financial markets after the collapse of coalition talks last week prompted a 3 per cent fall in the value of the zloty against the euro and dragged down shares on the Warsaw stock market.

"The liberals of Civic Platform could have launched far-reaching economic reforms in Poland. They have in their ranks experts on the economy which the conservative-Catholic Law and Justice doesn't have," said analyst Stanislaw Mocek.

Mr Lepper has already demanded the new government win more EU funding for farmers, spend more on welfare and curb central bank independence.

The EU and US are monitoring the first days in power of the pugnacious Kaczynski twins: Lech, who is Poland's new president, and Jaroslaw, who leads PiS and is seen as the real power behind Mr Marcinkiewicz.