A fiscally responsible Poland?

Reuters:

Poland's conservative candidate for prime minister Kazimierz Marcinkiewcz said on Wednesday he wanted a quick compromise with a pro-business ally over tax reform which would rejuvenate the country's economy.

The conservative Law and Justice and ally Civic Platform crushed the ruling left in Sunday' general election and are set to launch coalition talks later on Wednesday.

"We all agree that labour costs must be lowered and taxes are a part of this," Marcinkiewicz told public radio.

"That is why I personally will oversee talks on economic issues, here we have the biggest controversies and must quickly make joint decisions and come to a compromise."

The two centre-right parties have pledged to cut taxes and curb unemployment -- at 18 percent the highest in the European Union -- but deciding on a joint economic programme will be tough, economists say.

The conservatives see a bigger role for the state in the economy that the Platform and have vowed to strengthen the EU newcomer's welfare protection.

They have ruled out adopting the Platform's 15 percent flat tax scheme, which they attacked in the campaign as a "liberal experiment" that would benefit the rich. Instead, they want tax breaks for families and companies creating new jobs.

Marcinkiewicz reiterated he would seek to change the 2006 budget draft left by the outgoing cabinet, saying the changes would probably be presented to parliament late in November or early December.

He confirmed he that he planned to lower the 2006 budget deficit by 2.5 billion zlotys ($774 million) to 30 billion -- or slightly above 3 percent of gross domestic product.

According to daily Rzeczpospolita, the conservatives aim to bring down the deficit mainly through cuts in administration costs and elimination of several state agencies.

Law and Justice is also considering limiting the responsibilities of the finance minister by bringing some budget issues directly under control of the prime minister.

"We want to agree with Law and Justice what remains in the finance minister's hands and what is given to the premier," senior Civic Platform official Zbigniew Chlebowski told Reuters.

"Once this is known and the programme is set, then we can calmly decide...if there is any point in having the finance minister from another party than the prime minister," he added.