POLAND: Nawrocki Vetoes Energy Bill, Gov't Works On Tax Increases
Aug-22 07:04
- The government unveiled plans to raise various taxes amid efforts to beef up fiscal discipline. The Finance Ministry is working on increasing the alcohol excise tax and sugar tax from next year. In addition, it is planning to raise the corporate-income tax for banks from 19% to 30% next year, and then lower it to 26% in 2027 and eventually to 23%. Furthermore, Gazeta Wyborcza reported that the government is working on measures to tighten tax collection on cryptocurrency investments.
- President Karol Nawrocki refused to sign the government's energy bill, which would reduce the distance of newly constructed wind turbines from nearest human dwellings, in line with EU recommendations, and push back the expiry date of the existing household electricity price cap. His aides said that the President will soon unveil a draft bill lowering electricity prices by 33%.
- Money.pl reported that the government considers options including a legislative confrontation with the Presidential Palace (tabling another version of the original bill or amending the future presidential project), an attempt to reconcile the two projects, and (least likely) shelving the matter until the end of Nawrocki's term.
- mBank observe that another bill freezing electricity prices can only be voted into law after the next MPC meeting, which creates room for renewed speculation about a potential energy-driven rebound in inflation. In their view, considering wholesale market dynamics, the tariffs for 4Q25 (to be announced soon) could be just 5-10% higher than the current price cap (PLN500/MWh), which would boost inflation by 0.2pp. The tariffs for 2026 could be even lower, around PLN480/MWh.
- Deputy Interior Minister Czesław Mroczek said that the Russian military drone that crashed in Poland was 'probably not a decoy drone' as it was carrying explosive material but the details are still being confirmed. He admitted that there are 'certain shortcomings in radiolocation at low altitudes.'
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EURJPY TECHS: Trend Needle Points North
Jul-23 07:00
- RES 4: 175.43 High Jul 11 ‘24 and a key medium-term resistance
- RES 3: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
- RES 2: 173.43 High Jul 12 ‘24
- RES 1: 173.24 High Jul 15
- PRICE: 172.44 @ 07:58 BST Jul 23
- SUP 1: 171.37 Low Jul 22
- SUP 2: 170.97 20-day EMA
- SUP 3: 169.32 Low Jul 3
- SUP 4: 168.24 50-day EMA
The trend set-up in EURJPY remains bullish. Recent fresh cycle highs reinforce current conditions. A price sequence of higher highs and higher lows highlights a dominant uptrend and note that moving average studies are in a bull-mode position. Sights are on 173.43, the Jul 12 ‘24 high. Support to watch lies at 170.97, the 20-day EMA. A move below this average would signal scope for a corrective pullback.
GILTS: Futures Called Lower
Jul-23 06:58
Gilt futures called 91.85-95 by desks given the headwinds posed by the Japanese inputs outlined earlier, netting just below there at present.
EQUITIES: Futures Point To Rallies At The European Open
Jul-23 06:56
The risk-on impulses stemming from the U.S.-Japan trade deal leave European equity index futures pointing to positive cash opens.
- Euro Stoxx 50 futures: +1.23%
- DAX futures: +1.16%
- CAC 40 futures: +1.21%
- FTSE MIB futures: +1.04%
- FTSE 100 futures: +0.43%
- SMI futures: +0.95%
