Poland's governing Law and Justice party broadened support for its minority government by signing a deal on Thursday with a smaller Euro-skeptic party and rebel lawmakers from another group, but it failed to secure a majority in parliament.
The deal with Self-Defense and seven breakaway lawmakers from the ultra-Catholic League of Polish Families would strengthen the government's support in parliament, but still leaves it 13 seats short of a majority.
Together, the alliance holds 218 seats in the 460-seat lower house.
``I'm convinced this will allow us to slowly build a majority in parliament and allow backing for the government until 2009,'' said Law and Justice chairman Jaroslaw Kaczynski, whose conservative party has led a weak administration since winning fall elections.
But the deal with Self-Defense and members of the League of Polish Families, two populist groups that oppose adopting the euro currency, threatens to raise concerns within the EU and alarm investors about Poland's future fiscal policies.
Earlier this week, Standard & Poor's downgraded its economic outlook for Poland to stable from positive, citing political instability and "unclear prospects for structural reform" and the party's reliance on "populist fringe parties" -- Self-Defense and the League of Polish Families.
The ratings agency warned that these factors could put the brakes on pro-market reforms that would lower the country's debt.
Self-Defense leader Andrzej Lepper is a controversial figure who has frequently insulted other lawmakers and led sometimes violent protests in the 1990s against Poland's impending EU entry.
Lepper said Thursday that Poland "needs to be fixed" and that his party was ready to "take responsibility" for the country.
"Our main goal is the economy and the correction of people's situations," Lepper said. "You can do these simultaneously, one does not hurt the other."
The future division of posts in the government was not immediately clear, but Leppersaid that his party would head the agriculture, labor and newly created maritime economy ministries.
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