Polish Parliament Rejects Plan for Privatization of Large Firms

Parliament rejected a privatization plan Thursday, dealing the coalition government its worst defeat and leaving Poland without a framework for the mass privatization of large state enterprises.

Prime Minister Hanna Suchocka exchanged a shocked look with her Cabinet members when Parliament rejected the measure 203-181, with nine deputies abstaining. Defections and absences by about 25 coalition deputies sank it.

“This is a serious sign that there is a possibility of turning back from the path of reform,” the prime minister told reporters.

Suchocka’s government considered the long-delayed mass privatization program as a benchmark of its plan for economic reform.

The program, first announced two years ago, envisioned handing control of up to 600 companies to more than a dozen Western consultants who would manage, restructure and prepare them for sale or flotation on the Warsaw Stock Exchange.

The vote highlighted the weakness of Suchocka’s seven-party coalition. The 9-month-old government has no majority in the lower house of Parliament, or Sejm. It relies on support from independent deputies and the Solidarity union.

The defeat could call into question the future of the government itself. The pro-reform Liberals demanded an emergency meeting of coalition members to decide whether to continue their shaky partnership.

Privatization Minister Janusz Lewandowski, father of the program, offered to resign, but Suchocka asked him to continue in office, PAP news agency said.

Cabinet director Jan Maria Rokita said the government could still try to get a revised bill passed.

Much of Poland’s economy, including small businesses, has already been privatized.

The government’s plan involved the largest state enterprises, and opinion polls indicated general public support. But deputies criticized the plan, saying it would take 600 companies worth $10 billion out of government hands.