Oct 16, 2023 - Economy

Markets cheer Poland's return to democracy

Data: FactSet; Chart: Axios Visuals
Data: FactSet; Chart: Axios Visuals

Poland's right-wing authoritarian leader looks like he's been voted out; the pro-European democrat is in. And the market loves it.

Why it matters: The European Union was always conceived of as a union of liberal democracies. In recent years, however, it has struggled with that conception as Poland and Hungary elected anti-democratic leaders.

  • Now that former European Council president Donald Tusk looks set to be Poland's next prime minister, markets are hopeful that fights between the EU and Poland over judicial independence will be over and that EU funding to the country will be restored.

By the numbers: The Polish stock market rose by 4.3% on Monday, while its currency, the zloty, strengthened by 1.8% against the euro.

The bottom line: Sometimes, in the markets, good news is good news.

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