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Saturday, October 13, 2012

Poland's government survives confidence vote

October 12, 2012

WARSAW, Poland (AP) — Poland's pro-market government survived its first confidence vote in parliament on Friday that it called in hope of boosting support that is dwindling under economic reforms and a slowing economy.

In a policy speech prior to the vote, Prime Minister Donald Tusk pledged to invest €200 billion ($258 billion) to create jobs and boost growth to brace the nation for 2013, which, he said, will be "difficult."

Tusk said he was seeking to restore confidence in his government. The lower house, or Sejm, voted 233-219 with no abstentions in support of the coalition government, which was re-elected last year for a second four-year term. It is composed of Tusk's center-liberal Civic Platform and farmer-based Poland's People's Party.

Tusk subjected his Cabinet to the vote in order to measure and consolidate the support he needs to get through plans aimed at maintaining economic growth amid a downturn. Poland has seen unemployment rise — hitting 12.4 percent in August — as economic growth slows. After registering 4.3 percent GDP expansion in 2011, growth is forecast to slow to less than 3 percent this year and lower still in 2013.

Tusk said he aims to boost the economy and create jobs with planned investments of up to 800 billion zlotys (€200 billion) in infrastructure, energy, shale gas, defense projects, education and research up to 2020. The funds cited are a combination of government, EU and private investments.

Poland's longest serving premier needs to rekindle public enthusiasm because his popularity suffered recently under reform measures such as raising the pension age to 67 and criticism of his ministers.

The justice system was revealed to have failed to act decisively against a shady investment plan that collapsed, costing investors millions. Investigators and forensic experts have been criticized for mistakes in identifying the victims of a 2010 plane crash that killed President Lech Kaczynski and 95 others.

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