Economist on the action around the Constitutional Tribunal: further polarization of the political scene, the economy will suffer

The situation surrounding the Constitutional Tribunal affects the valuation of Polish government bonds, indicating further political polarization. Economists predict minimal market reaction due to long-standing distrust since 2015. Upcoming ratings from agencies like S&P may impact fiscal trends, especially after Moody's downgraded Poland's rating. Despite high borrowing needs, recent bond auctions showed strong demand, although debt servicing costs are rising significantly. The political climate since 2015 has deterred foreign investors, leading to a widening credit spread and a lower perceived rating for Polish debt.