Growth is still very strong. Once you focus beyond the politics in Poland, you're actually quite pleased with what you see.

Something in Hungary has to change this year. It will either be forced by the financial markets or the government will do it voluntarily as a preemptive step.

The economy will continue to do pretty well, after the very strong figures we saw in the fourth quarter. That gives the currency a chance to strengthen.

The market will now worry about what concessions Law & Justice has had to make. There are also concerns about the change to central bank law.

The problem that Sharon's exit could cause is that it raises questions about the prospects for peace across the Middle East.

All the setbacks in the zloty have been politically driven and now we can ignore the politics and focus on fundamentals. All that speculation about rate cuts is also proving very bullish for the zloty.