PiS wins vote of confidence with reform pledge

POLAND: Poland's conservative minority government won a vital vote of confidence in parliament last night, after making concessions to its allies and vowing to crush poverty and corruption.

Prime Minister Kazimierz Marcinkiewicz began a long day of speeches and debate by telling parliament that a government led by his Law and Justice party (PiS) could revitalise the economy and restore the nation's faith in its politicians.

"Again, hopes for change have emerged and we cannot disappoint them," he said, ahead of a vote which his cabinet won by 272 votes to 187.

"We want to take the state away from parasite networks and informal lobby groups and return it to its rightful owners - the Polish people."

PiS won a general election and presidential poll last month, routing socialists, whose rule became associated with sleaze, corruption and unemployment of 18 per cent, the highest in the EU.

But celebrations were tempered when coalition talks between PiS and the pro-business Civic Platform collapsed in acrimony over the division of cabinet posts and the priorities for the government, with the parties at odds over the pace and depth of reform.

While Civic Platform wanted to liberalise markets, cut state spending and introduce a flat tax rate to encourage investment, PiS promised to cut taxes, boost welfare payments and state intervention in the economy, and made disapproving noises about plans to adopt the euro.

That spooked the financial markets, causing a fall in both Warsaw's stock market and the value of the zloty against major currencies.

With an angry Civic Platform vowing to form a strong opposition to the new, minority government, PiS's enforced choice of allies did not calm markets.

The election-winners sought the backing of Self-Defence, a populist left-wing party led by firebrand former pig-farmer Andrzej Lepper, who became notorious for leading occasionally violent protests against reform and EU membership.

PiS also courted the League of Polish Families (LPR), a nationalist party that, like Self-Defence, is popular among rural Poland's poor.

LPR wants to see more money spent on social projects, and is suspicious of liberal reforms espoused by many economists.

Deputies from LPR and Self-Defence helped PiS fend off the Civic Platform and the beleaguered socialists in the parliamentary vote, but both parties made it clear they would abandon the minority government if its policies displeased them.

Perhaps keen to avoid alienating his allies before the confidence vote, Mr Marcinkiewicz was vague when outlining his government's plans yesterday.

Jan Rokita, deputy head of the Civic Platform, said the PiS would struggle to push through changes while keeping Self-Defence and LPR on side.

"This government has good intentions," he said.

"But the question is whether it will be strong enough to carry through its programme because it is, by definition, a weak government."