Polish PM sees even chance of early elections

WARSAW, July 13 (Reuters) Poland's conservative Prime Minister Jaroslaw Kaczynski said today he saw an equal chance that the country would need to hold early elections or that the current coalition would hold together.

The fragile ruling alliance in the ex-communist EU member won something of a reprieve yesterday when a junior partner said it would not leave immediately despite the sacking of its leader by Kaczynski this week over corruption allegations.

But the leftist Self-Defence party's leader, Andrzej Lepper, has maintained a threat to withdraw unless he is presented with evidence of corruption. If the coalition comes apart, it would probably force elections before they are due in 2009.

Asked whether he thought he could keep governing with Self-Defence or would need early elections, Kaczynski told public radio: ''It happens that I do not know... I believe there is still sense in co-governing but if there will be no such will from this party, we will go for early elections.'' ''We are open for both scenarios equally,'' he added.

Kaczynski added that if elections were held early, they would take place before the end of the year.

Lepper's deputy Janusz Maksymiuk told Reuters Self-Defence would announce next week whether the party would stay in the coalition.

Financial markets have been largely unaffected by the latest political crisis in central Europe's biggest economy.

Poland's economy has boomed under prime minister and his twin brother President Lech Kaczynski, but political infighting has shown no sign of abating. The Eurosceptic Kaczynskis have also clashed repeatedly with EU partners.

REUTERS SW PM1310