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Parliament Set To Resume Work On Court Bill, Inflation Expectations Remain Elevated

POLAND
  • Parliament is set to resume work on a court bill that represents a key "milestone" for securing access to EU recovery funds. DGP reports this morning that the ruling Law and Justice party is not counting on support from its eurosceptic junior coalition partner Solidarna Polska anymore, but appears to have made progress in talks with President Andrzej Duda, albeit some sticking points remain. A government source told the newspaper that the ruling party will reach out to opposition lawmakers and try to persuade them to back the legislation.
  • The opposition has so far refrained from pledging unconditional support to the government's proposals and intends to table amendments before deciding whether to back the new court law. Law and Justice has repeatedly called on opposition lawmakers to approve the bill in its current form, arguing that it has been greenlighted by the European Commission.
  • Almost half of respondents in a DGP/RMF FM survey said that they expect inflation to accelerate this year, while just 20% said price growth would likely slow. The survey also revealed that people's estimates of current inflation are way higher than the official numbers, suggesting that elevated inflation has become embedded in consumer psychology. NBP's Ludwik Kotecki told DGP that lowering inflation expectations is a necessary condition for a sustainable moderation in actual inflation.
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