Belka confirmed as Polish PM

Marek Belka has been confirmed as Poland's prime minister on Thursday after a parliamentary vote of confidence ended months of political uncertainty.

Belka's successful attempt to gain the Polish parliament's support averts the prospect of a snap general election in August and the possible defeat of the unpopular ruling Democratic Left Alliance.

The Polish parliament voted 236 in favour, 215 against, with one abstention.

The former finance minister took over from his predecessor Leszek Miller after he was forced to resign amid sleaze scandals the day after Poland joined the EU.

Belka then lost a first confidence vote at the end of May, limiting him to a caretaker role.

In his policy speech, the premier pledged greater spending on social policies for the poor to soften the blow of planned fiscal cutbacks.

"We must combine attempts to rationalise public finances and take into account the needs and hopes of those who require the most help," Belka said.

The prime minister said budget plans for 2005 would hinge on the implementation of reforms - and the need for Poland to absorb billions of euros of EU aid.

Support for the SLD party has recently plummeted from 41 percent at the last parliamentary elections in 2001 to nine percent at the EU polls.

Belka's victory averts snap elections in August and gives the deeply unpopular ex-communists a chance to regroup and gain supporters before parliamentary polls, now envisaged in early 2005.

Belka, a former finance minister respected by financial markets, lost a first confidence vote in May, limiting him mainly to a caretaker role and halting work on fiscal reforms.

"Now there will be more calm, a bit of respite, some time for important legislative proposals (and) economic reforms," Belka told Reuters in a brief interview after the vote.

Belka wants general elections to take place in early 2005, as does President Aleksander Kwasniewki. "If this government is to be effective...it would be natural to hold general elections in the spring of 2005," Kwasniewski told reporters.

Financial markets had already priced in Belka's victory, with the zloty a shade stronger on Thursday on hopes of stable rule, although few analysts expect much headway in reforms.

Knowing that failure in the vote would trigger snap elections, which the minority ruling Democratic Left Alliance (SLD) would most probably lose, Belka rallied smaller leftist groups and independents around his ex-communists.

As a concession to win the support of a key leftist party, which like the SLD performed poorly in this month's EU elections, Belka vowed to call another confidence vote in October to ensure he still has a mandate.

If he fails then, elections may take place late this year.

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