Justice system overhaul could hit investments: report

Moody’s said that planned reforms threatened the independence of the courts and separation of powers and could see a rise in corruption, which could affect investor confidence.

The agency said it did not expect the European Union to enforce sanctions against Poland but said Brussels’ stepped up rule-of-law procedures could hit investments.

Sanctions would require unanimous backing by EU countries, but Hungary has said it supports Poland.

Polish President Andrzej Duda recently vetoed two of three government-backed bills to give elected officials significant powers to appoint - and dismiss - court justices.

He announced he would draw up his own alternatives to the two vetoed bills.

But Moody’s said they were likely to be similar to the government’s proposed changes because Duda is close to the ruling conservatives who are eager to overhaul the justice system.

Poland's governing Law and Justice (PiS) party has said that sweeping changes are needed to reform an inefficient and sometimes corrupt judicial system, accusing judges of being an elite, self-serving clique often out of touch with the problems of ordinary citizens.

A vetoed Supreme Court reform would have forced the court's existing justices into retirement while giving the president powers to choose who to reinstate, while vetoed changes to a powerful judges' ethics council would have seen 15 of its members who are judges selected by parliament – rather than by other judges as up to now.

A third bill which was signed into law changes the way the heads of district and appeals courts are appointed and dismissed, giving more power to the justice minister, and making the allocation of cases to judges random.

Thousands of people took to the streets across Poland to protest at the government’s planned changes, calling them a “coup” and an attack on democracy.

The European Parliament, European Commission and several European leaders criticised the planned reforms. (vb)

Source: PAP