More volatility on the bond and FX markets can be expected later this week, as the vote on the dissolution of the Sejm slowly comes into focus. However, we believe that the vote would be rejected, as Civic Platform party refused to support it. Instead, we see growing probability that populist Samoobrona with Andrzej Lepper will enter the government. Until recently, the Finance Minister Mrs. Gilowska indicated that she would leave Marcinkiewicz’s cabinet if she were to work with Lepper. Meanwhile the Samoobrona leader himself, under attack from media, has become slightly less radical and seems more and more desperate to become the deputy PM. It’s worth stressing that even if this happens, the populist’s position within the government will remain weak, hence their ability to obstruct next years budget should be limited. Especially since we believe, that even though in the long run it would be hard for the FinMin to cope with Lepper as deputy PM, Gilowska will remain in the government in order to guard fiscal integrity at least until work on the 2007 budget act is completed.