Does Ukraine have the worst political crisis since Maidan revolution?
And possible political turmoil in Bulgaria
IMF praises Hungarian economy
Mateusz Morawiecki, Development Minister and the Deputy Prime Minister of Poland announced his economic roadmap for the country. The plan will cost approx. PLN1 trillion over coming years. It will be financed from the EU funds and country’s own sources, namely bank deposits of Polish companies in the private sector and state-owned firms. The development program, called the “Morawiecki plan” has five pillars.
A 25 years plan
Strengthening Polish capital, growth of innovativeness of Polish companies through a gradual development over the next two and a half decades.
The investments should reach PLN1 trillion. “We want to prepare some 20 large projects in infrastructure and industry which would be easy to commercialize,” Morawiecki informed.
Improving Polish competitiveness on the international market by supporting innovation around the country.
A digital revolution
Increasing Poland’s participation in the digital revolution. “Poland missed the first revolution – steam engines – because was partitioned by the end of the eighteenth century. The second revolution – electricity –also was missed because Poland was fighting for independence. The third, the technology revolution also bypassed us, because [Poland] was then a communist country. Today, we are experiencing the fourth industrial revolution, often referred to as the digital one. We want to be in the eye of the storm of the digital revolution,” Morawiecki said.
Better paid jobs
Increasing jobs by strengthening Polish exports and increasing the value of companies.
All eyes (of European leaders, private lenders and the International Monetary Fund officials) on Ukraine. On February 16th Prime Minister Arseniy Yatseniuk reported his cabinet’s work in 2015 before the Verkhovna Rada. The parliament (Rada) didn’t approved his annual report (247 deputies out of 450 were against, 194 deputies voted in favour). But Yatsenyuk managed to save his office. Just minutes after voting on the annual report, Verkhovna Rada failed to pass no confidence motion – 194 deputies backed up the idea (ousting the cabinet requires 226 votes).
Hours before the vote President Poroshenko called Mr. Yatsenyuk to step off his office. “Obviously, society and government are not satisfied with the pace of change. Obviously, we need to accelerate the positive transformation to get a second wind for reform,” he said.
But Yatsenyuk didn’t want to resign. So far there is no threat of earlier election in Ukraine, but The Guardian points out that there is more and more tensions in Ukrainian politics. “The vote reflected political tensions amid economic problems that have eroded public support for the cabinet of PM Arseniy Yatesnyuk. The failure to pass the parliamentary motion reflected MP’s fears that it could cause the collapse of the ruling coalition and lead to early election” Financial Times calls the political crisis “the country’s worst political crisis since 2013-2014 Maidan revolution”.
The reasons why the deputies from Petro Poroshenko Bloc, Batkivshchyna Party, the Opposition Bloc, the People’s Will party and some independent lawmakers wanted to force Mr. Yatsenyuk (and his cabinet) to resign, are in simple:
- Lack of will to fight corruption;
- The unsatisfactory pace of reforming the country.
“Lawmakers in Bulgaria are set to hold a debate on the first motion of no confidence against the coalition government of Prime Minister Boyko Borisov on February 17th,” Novinite.com reports.
The bill was submitted last week and signed by 69 lawmakers including the biggest two opposition parties – the Bulgarian Socialist Party (BSP), the liberal Movement for Rights and Freedoms (DPS), and two independent MPs.
The major reason for discontent is the healthcare policy of the cabinet. “The opposition says it hopes the motion will improve healthcare policies after debates have taken place, even if a majority of lawmakers do not support it with their vote later this week,” the Bulgarian portal informs.
121 votes are needed to pass the motion, the opposition so far is able to gather 98 votes.
“The Hungarian economy is performing very well and its vulnerability to shocks has declined substantially, although debt levels and financing needs remain high,” writes IMF in its report based on preliminary findings of IMF’s regular consultation with Hungarian authorities.
“According to the IMF, solid growth and a sharp reduction in unemployment are largely due to supportive macroeconomic policies, a favorable external environment, and high utilization of EU funds. Output growth is projected to moderate slightly this year owing to the expected deceleration in the uptake of EU funds,” Daily News Hungary reports.
The IMF points out the inflation is in Hungary is expected to remain low and slowly reaches the 3 percent target, as food and energy prices recover and the labor market tightens. The current account has been in record surplus, while external debt — especially FX-denominated — and gross public debt have continued their downward path. According to the IMF Hungary is now “less vulnerable to external shocks”. Nevertheless the institution warns that “financing needs to remain high and an abrupt sharp deterioration in global or emerging market risk perception could lead to capital outflows”.
What’s up in indexes?
SAX of Bratislava grew by 2.29 per cent d/d and it’s the best result on Tuesday, February 16th.
BUX (of Budapest) lost 0.23 per cent – decreasing from 23065.93 index points Monday, February 15th to 23013.88 index points Tuesday, February 16th. From year-end it dropped by 3.79 per cent.
BET (of Bucharest Stock Exchange) lost 0.36 per cent Tuesday, February 16th, closing at 6113.90 index points. The previous close (Monday’s) was 6136.00 index points. From year-end it lost 12.71 per cent.
PX (of Prague) dropped by 1.65 per cent decreasing from 875.81 index points Monday, February 15th to 861.37 index points Tuesday, February 16th. From year-end it dropped by 9.93 per cent.
WIG20 (of Warsaw) decreased from 1787.98 index points Monday, February 15th to 1783.93 index points Tuesday, February 16th. From year-end it dropped by 4.05 per cent.
OMXT (of Tallinn) increased from 888.82 index points Monday, February 15th to 890.47 index points Tuesday, February 16th. It’s up 0.19 per cent d/d. From year-end the index dropped by 0.95 per cent.
OMXR (of Riga) dropped by 0.19 per cent – decreasing from 610.21 index points Monday, February 15th to 609.03 index points Tuesday, February 16th. So it dropped by 0.19 per cent d/d. From year-end the index grew by 2.47 per cent.
No trading at OMXV (of Vilnius) Tuesday, February 16th. On Monday it was 0.14 per cent d/d, ending with 483.21 index points. From year-end it dropped by 0.57 per cent.
SAX (of Bratislava) was up 2.29 per cent d/d and 6.89 per cent from year-end. It increased from 305.47 index points Monday, February 15th to 312.48 index points Tuesday, February 16th.
SOFIX (of Sofia) was up 0.94 per cent Tuesday, February 16th. It climbed from 444.31 index points (Monday) to 448.50 index points. From year-end it dropped by 2.69 per cent.
UX (of Kyiv) lost 1.02 per cent d/d and 9.71 per cent from year-end. Tuesday, February 16th the index closed at 619.25 index points. The previous close was 625.62 index points.
CROBEX (of Zagreb Stock Exchange) was up 0.72 per cent closing at 1609.97 index points Tuesday, February 16th. The day before it closed at 1598.41 index points. From year-end it dropped by 4.71 per cent.