New Polish Deputy Prime Minister Vows Strict Economic Policies

But economy minister Janusz Steinhoff, who will now become deputy prime minister in charge of economic policies, also said his right-wing government of the Solidarity bloc (AWS) envisaged more state intervention in the economy. The AWS has led the minority cabinet since Tuesday when the smaller Freedom Union party (UW) left the ruling coalition, saying Prime Minister Jerzy Buzek and his AWS lacked determination to push ahead with necessary free market reforms. Balcerowicz, formerly also the deputy prime minister, made clear the AWS had resisted his plans to radically cut state spending next year, but Steinhoff said the budget deficit will continue to be lowered. Steinhoff, declining to give any figures, said he counted on good cooperation with new Finance Minister Jaroslaw Bauc to implement policies that would keep Poland's economic growth at more than five percent annually. The government is to decide by mid-July on the 2001 national budget draft and send the bill to parliament for approval by the end of September.