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Parliament To Discuss Key Bills, Plethora Of Data Inbound

POLAND
  • Polish politics this week is headlined by a three-day meeting of the Sejm. On Tuesday afternoon, a parliamentary committee is set to discuss legislation lowering the quorum for legal cases which must be heard by the full bench of the Constitutional Tribunal. The law would help break the deadlock in Poland's top court caused by a boycott announced by several judges, potentially allowing to make progress on processing judicial reforms needed to unlock EU funding. The Sejm might discuss the legislation at plenary session as soon as this week. In addition, the lower house is also expected to discuss some of the ruling party's election pledges (toll-free motorways, pension hike) and two constitutional amendments. The latter would allow the government to expropriate assets used to support the Russian invasion against Ukraine and to exempt national defence spending from the constitutional fiscal ceiling (60% of GDP).
  • Gazeta Wyborcza reported that the ruling Law and Justice party's next election declaration will involve boosting the indexation of pensions. This comes after Law and Justice vowed to increase payments from its flagship child benefit programme, expand the free prescription scheme, and make all motorways tool-free.
  • Poland's tightly packed economic docket will draw attention this week. Today we will get April PPI, industrial output, wages and employment, due for release at the top of the hour. Retail sales are due tomorrow, with the unemployment rate coming up Thursday.
  • NBP's Joanna Tyrowicz told TVN24 that Poland's inflation momentum has not eased and the central bank "doesn't have comfort to ease monetary policy." Tyrowicz is probably the most hawkish member of the MPC and has been consistently calling for higher interest rates.
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