Biznes Fakty
Karol Nawrocki. Moody's Agency Comments on Election Results
Karol Nawrocki’s triumph in the presidential election signifies a persistence of institutional stalemate in Poland. The governing coalition might increasingly resort to fiscal measures to sustain support, potentially delaying the consolidation of public finances until 2026, according to Moody’s rating agency.
„Nawrocki’s win indicates that the ongoing impasse between the government and the president will persist, complicating the KO-led government’s ability to govern efficiently and execute justice reforms. Polish laws can be affected by a presidential veto. Consequently, Poland is likely to endure an extended period of institutional deadlock,” Moody’s stated in a report released to PAP Biznes.
„The president’s veto can only be overridden (in the Sejm – ed.) by a 3/5 majority vote, which the current KO-led government lacks. This empowers the president to halt progress on bills that do not receive backing from PiS. This suggests that obstacles in accessing additional funds from the KPO may continue, as essential reforms tied to key phases of the KPO might remain obstructed,” it continued.
Will the government invest in maintaining support?
According to Moody’s, in the absence of a legislative agreement between the government and the president, the ruling coalition spearheaded by KO may increasingly implement fiscal strategies to uphold public backing.
„This comes alongside a substantial rise in defense expenditures and escalating demands on health and social program funding. As a result, the fiscal tightening anticipated by the Ministry of Finance for 2026 might be postponed,” it noted.
Among the three largest rating agencies, Poland’s creditworthiness is viewed most favorably by Moody’s – with a rating of „A2”. In contrast, Poland’s ratings from Fitch and S&P are „A-„, one tier lower than Moody’s. The outlook for all ratings is stable.
