Report
Inna Mufteeva

Poland’s presidential election runoff: consequences of an extended “cohabitation” regime

L ast Sunday , Poland held the second round of its presidential election. In a closely contested race , nationalist Eurosceptic candidate Karol Nawrocki , nominated by the hard - right opposition party Law and Justice (PiS) , narrowly defeated his opponent Rafał Trzaskowski from the center-right , pro-EU Civic C oalition . What does this outcome mean for Europe and Polish domestic affairs ? In brief , it represents a setback for pro- European reformists in Poland and a shift toward s isolationism and a pro-Trump populist agenda . T he constitutional veto power of the PiS -backed president would enable him to block the reformist agenda of the current pro-EU government , further weakening its position ahead of the 2027 legislative election s . Prime Minister Donald Tusk's government has already lost popularity due to the disenchantment of its supporters ( including younger population s and women) amid the lack of progress o n promised reform s , particularly those in judiciary and i n the social sphere . Moreover , weakened domestically , Tusk would struggle to realize his ambition of enhancing Poland’s stan ding within the EU. Conversely , Poland now seems set to join the camp of European isolationists - such as Hungary and Slovakia - in the medium term , likely after the next legislative election s scheduled for 2027 . If the immediate market reaction has been muted, the economic consequences of the unconstrained PiS rule c ould be negative , with further deterioration in public finances , frozen EU funds , and rising inflation due to the anti-immigration polic ies .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Inna Mufteeva

Other Reports from Natixis

ResearchPool Subscriptions

Get the most out of your insights

Get in touch