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Is Poland In A Downward Spiral?

Warsaw, Poland 10 March, 2006 - Poland remains embroiled in high profile political bickering that shows no sign of abating. The Stabilization Pact is as unstable as ever with the signatory parties, PIS, LPR and Samoobrona, apparently unable to agree on much so the country may be headed to new elections. According to the latest threat by the ruling party leader, Jaroslaw Kaczynski, elections could be held this spring.

The Polish government has announced its plans to investigate the independence of the media over the last 16 years. The Polish government wants to determine if the media is really free or if, and to what extent, financial and political interests control it.

At the same time the Polish government is questioning freedom of the media it is attacking one private news service for not showing one sound bite on television that the ruling political party released during its election campaign. The sound bite in question was part of the vicious attack against opposition party (PO) leader Donald Tusk. The media sees this attack as part of the continuing efforts to control the media.

The Polish President, Lech Kaczynski, spent time in Germany this week and did not get flattering reviews of his activities by Polish commentators. He was soundly criticized for his undiplomatic discussion of World War II wounds and controversies. The heckling by gay activists at a speech in Berlin’s Humboldt University at which the police intervened to restore order received high profile media coverage.

Polish unemployment in February remained at 18%. The steady figure is said to reflect the decline in construction jobs that has resulted from the cold weather that has gripped the country.

Solving the unemployment problem is one of the priorities of the PIS government. The Prime Minister, Kazimierz Marcinkiewicz, may have made a significant step in solving the problem by reportedly getting Spain to open its labor market to Polish workers in May. If this comes to pass, Poland will have another sink into which it can pour its disaffected, unemployed and some of its best brains. The Ministry of Labor and Social Policy says that brain drain isn’t a serious threat yet, but the problem has to be considered as the scale of Polish labor migration is likely to increase.

Poland remains embattled with the EU over a bank merger. And then the head of the National Bank of Poland, Leszek Balcerowicz, because he decided to remove Deputy Finance Minister Cezary Mech from a meeting, may possibly be referred, on the demand of the political parties LPR and Samoobrona, to the State Tribunal.

And while the politicians bicker, the financial market votes. On Wednesday the Polish currency lost over one percent of its value and on Tuesday over 1.5% to the Euro.

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