In one of the most dramatic upsets in a major Central European election in recent years, Komorowski, who was backed by the ruling Civic Platform (PO) party which has ruled Poland for the last eight years, squandered an early 50-percentage-point lead in the polls over the opposition Law and Justice (PiS) candidate. His failure was due to growing disillusionment with the scandal-plagued PO and Duda's appeal among poorer sections of Polish society, particularly in the country's less-developed eastern half. Duda's surprise victory raises the stakes in the more important parliamentary elections in October, with PiS now in a stronger position to win that contest.
Poland is the latest European country in which mainstream political parties will face a stiff challenge from anti-establishment movements.
Investor sentiment towards Central Europe will remain favourable because of its sound fundamentals and relatively brisk growth rates.
The zloty and local bonds will remain vulnerable owing to market depth, liquidity and sensitivity to price action in global debt markets.
