Polish Premier Mulls Dismissing Finance Minister, RMF Reports

Poland’s Prime Minister Donald Tusk is considering dismissing Deputy Premier and Finance Minister Jacek Rostowski, RMF FM radio reported today without saying where it got the information. The zloty weakened on the news.

The dismissal would be “a done deal” if Tusk had a good candidate to replace Rostowski, the radio said on its website, citing a politician it didn’t name from the ruling Civic Platform party. The government “doesn’t comment on press speculation,” Konrad Niklewicz, a spokesman for Tusk, said by phone from Warsaw.

Tusk’s party has fallen behind the opposition Law and Justice in opinion polls as the government struggles to revive the economy, which is set to growth at the slowest pace since the 1990s this year. Rostowski last month announced plans to widen this year’s budget deficit and suspend rules limiting fiscal stimulus to aid recovery. The cabinet is also working to overhaul the country’s privately-managed pension funds to reduce public debt.

“We are in a middle of budget revision and the decision about the shape of the pension reform,” Piotr Kalisz, chief economist for Poland at Citigroup Inc., said by phone from Warsaw today. “It’s hard to imagine a change of the Finance Minister at this moment. I wouldn’t expect that.”

The zloty pared gains, trading less than 0.1 percent stronger on the day at 4.1913 against the euro at 2:54 p.m. in Warsaw. The yields on the government’s two-year bonds rose two basis points, or 0.02 percentage point, to 2.95 percent, rising for a sixth day. Warsaw’s WIG stock index was little changed.

“It would be a serious shock to investors if Rostowski went,” Peter Attard Montalto, an emerging-market economist at Nomura International Plc, said by email today. “He connects with investors very well.”

To contact the reporters on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net; Konrad Krasuski in Warsaw at kkrasuski@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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