Moody's evaluates Nawrocki's victory: This is a further institutional deadlock

The victory of K. Nawrocki in the presidential election means a continuation of the institutional deadlock in Poland, and the ruling coalition can increasingly use cash to maintain support, which may delay the consolidation of public finances in 2026 – assesses the Moody's rating agency.

“Nawrocki's victory means that the existing deadlock between the government and the president will be continued, hindering the government directed by the effective governance and implementation of the judicial reforms. Polish legislation is susceptible to the presidential veto. As a result, Poland will probably become in the face of the constant period of institutional impasse” – wrote in the Moody's Report, the PAP was made in the report.

“The president's veto can be overthrown (in the Sejm – PAP) by only 3/5 votes, which the current government managed by the KO does not have. This allows the president to suspend work on laws that are not supported by PiS. This means that difficulties in access to further funds from KPO may persist, because the necessary reforms related to the key stages of the KPO may still be blocked” – added.

In the opinion of Moody's without an agreement in legislative matters between the government and the president, the ruling coalition under the leadership of the KO may, in increasingly use fiscal measures to maintain social support.

“This is accompanied by a significant increase in defense expenditure and growing pressure on expenses for health and social programs. As a result, fiscal strengthening planned by the Ministry of Finance planned for 2026 may be delayed” – added.

Of the three largest rating agencies, Poland's creditworthiness is assessed by Moody's – at “A2”. Polish rating according to Fitch and S&P is “A-“, one level lower than Moody's. The prospects of all grades are stable. (PAP Biznes)

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