Tax row delays new coalition in Poland

Poland: Poland's prospective coalition partners have entered the final round of negotiations, with disagreements over a proposed…

Poland:Poland's prospective coalition partners have entered the final round of negotiations, with disagreements over a proposed flat tax delaying a deal.

The tax proposal from the liberal, pro-business Civic Platform (PO), winners of the recent general election, is rejected by the smaller Peasants Party (PSL).

A compromise on the issue will not be easy: the PO made a flat tax an election promise and will control the finance ministry, while PSL is to take over the economics ministry.

Another conflict is looming with conservative president Lech Kaczynski over the EU Charter of Fundamental Rights.

READ MORE

He has expressed concern that the new government wants to discard the opt-out agreed days before the election by his ousted prime minister brother Jaroslaw. President Kaczynski said the charter poses a "threat" to Polish "national identity".

The outgoing government worried the charter would force Poland to legislate for same-sex partnerships, or ease strict abortion regulations, highly controversial issues in Poland.

The Kaczynski brothers' Law and Justice (PiS) party also suggested the charter might influence an ongoing dispute between Warsaw and a small number of Germans seeking compensation for land seized in today's western Poland. European officials have dismissed the concern, saying that EU law does not cover land ownership issues.

PO leader Donald Tusk said he would meet with Mr Kacyznski to discuss the issue as soon as he becomes prime minister. The new parliament is meeting for the first time on Monday, with Mr Tusk's nomination expected in the subsequent days.

"I believe it is rather in Poland's interest to sign up to the charter, but I cannot ignore signals opposing it, coming also from the head of state," said Mr Tusk on Polish television.

The noises comes from the presidential palace suggest that Mr Tusk could be in for a difficult co-habitation with Mr Kaczynski.

The Polish president is no mere figurehead: under the 1997 constitution he has great influence on foreign policy, security and defence matters and is supreme commander of Poland's armed forces.

Unlike the president, Mr Tusk has said he favours pulling Polish soldiers out of Iraq as soon as possible.

Mr Tusk has questioned too the wisdom of the proposed US- built missile defence shield in Poland and the Czech Republic, a plan supported by President Kaczynski. "We must know the answer to the question whether this increases or decreases Poland's safety," said Mr Tusk yesterday.

Derek Scally

Derek Scally

Derek Scally is an Irish Times journalist based in Berlin