It’s the economy, stupid

– but it seems on the evidence so far that 2006 is going to surpass this amounta consolidation of the retail sector: in Poland, the top  Mind the gap6 pct and the cost of borrowing at 3.6 pct and likely to climb further in the wake of a series of increases in US interest rates, economists are predicting further small upward adjustments in eurozone rates this year – and it is these that are important as major acquisitions and leasing deals in Poland are always made out in euros or else are euro-linked. Taking into consideration the fact that acquisitions are generally 70-80 pct financed from loans, the reduction in the premium between yields and interest rates will have a significant impact on what investors are willing to pay. a whole percentage point higher, at 7 pct compared to 6 pct in the capital. But for the really high yields, the risk-loving type of investor may start looking outside Poland, to soon-to-be EU countries such as Bulgaria and Romania (due to join the EU