Polish coalition talks continue

WARSAW - Poland's prime minister-designate Kazimierz Marcinkiewicz said yesterday he would present a minority government to be sworn in on Monday local time, while forging ahead with talks to build a majority coalition.

Financial markets have been rattled by the prospect of minority rule by Marcinkiewicz's conservative law and Justice party, which would diminish hope for economic reforms.

Analysts say the zloty currency and bonds could be buoyed by continued prospects of a coalition with the pro-business Civic Platform.

"I am convinced that further talks will bring us closer together and will eventually result in success," Marcinkiewicz said on live television.

"As I promised, tomorrow I will present a minority government."

Lukasz Tarnawa, chief economist at Poland's largest bank PKO BP, said continued hope for a deal could bolster the zloty, which last week fell roughly 3 per cent, to 4.00 to the euro as hopes of a quick coalition deal faded.

"It's not that important if a minority government is proposed for the first (Wednesday) deadline for forming a government -- the work of building a coalition can go on," Tarnawa said.

- REUTERS