Fiscal support coming in Israel, Tusk’s election win

There remains significant uncertainty over how the Israel-Hamas war will evolve, but developments this week confirm that fiscal policy will be loosened as policymakers provide support to the military and attempt to limit any adverse impact on the economy. That said, we don't expect interest rates to be cut at the central bank's meeting next week. Elsewhere, the final vote count from Poland's election confirmed a victory for the main opposition parties, which has helped to sustain some of the optimism in the country's financial markets. Big hurdles lie ahead for the opposition, though, and unlocking EU funds is likely to prove difficult in practice.