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Government’s Recovery Plan Already Facing Difficulties

POLAND
  • A busy day for the Polish government ahead, as the PM, infrastructure minister and agriculture minister present various parts of the government’s strategic investment plan. PM Morawiecki will likely be the highlight, who speaks at 10am local time (0900BST / 0400ET).
  • Despite today’s presentations, DGP Daily is already flagging issues with the government’s recovery plans. They write that Poland may face further problems with its recovery plan KPO even if the European Commission approves the scheme, as a number of ministries as well as the PM chancellery are suffering delays in implementing milestones. Additionally, Poland has not fully prepared a system for implementation, which could slow progress.
  • Poland’s climate minister has said introducing a windfall tax on excess profits is not necessary at this stage, according to an interview with Biznesalert.pl. Moskwa added that Poland has contingency plans for all scenarios concerning a further reduction in gas imports. Poland is also now in discussions with the Czech Republic and Slovakia on LNG infrastructure investment.
  • Following Morawiecki’s presentation, the PM then re-joins the EU summit aimed at finding a unanimous resolution on further Russian energy sanctions. So far, EU nations have failed to reach unanimity in their approach to Russian sanctions, with Hungary refusing to back a compromised deal, according to sources. Diplomats are set to meet again today, with the source adding that a deal remains possible over the next few days.
  • No major data releases due Monday, with focus turning to tomorrow’s GDP and CPI figures.
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