Miller on His First Year as PM
Warsaw, Sept. 22: Reversing the course for disaster that Poland was on when my cabinet took over power almost 12 months ago is the most important achievement of that year - PM Leszek Miller said addressing public television. Almost exactly one year after the parliamentary elections my cabinet adopted a draft 2003 budget that provides for growth and is a harbinger of hope. The next year will be better than this one and every following year will be better than the preceding one. This is the result of favourable changes implemented in the first year of rule of the SLD-PSL-UP coalition cabinet and the fruit of a consistent implementation of the coalition programme. He listed such important signs of progress as better efficiency of enterprises and a gradual economic recovery, the unblocking of accession talks with the EU, the strengthening of Poland's international position, the adoption of major programmes to serve people and the economy, and doing away with blunders committed by the former cabinet

Kwasniewski Welcomes Bush's Proposal on Plane Sale
Warsaw, Sept. 20: President Aleksander Kwasniewski said that a possible decision of the U.S. Congress to grant a government credit to Poland for the purchase of multitask planes would make the American offer very attractive. I think this is an important decision and I am happy that such decision was made by President Bush. The Americans have well understood that in this case, regarding the financing of the tender, they simply must propose something serious and far reaching. Defence Minister Jerzy Szmajdzinski said that reports from the U.S. on a possible credit are very interesting but stressed that the final offers is what counts.

Cabinet Approved Draft 2003 Budget
Warsaw, Sept. 20: The cabinet approved the 2003 draft budget. The state budget deficit is to reach 38.7 billion zlotys (9.4 billion USD). The government will give its final approval for the draft following consultations with the Trilateral Commission. Economic growth in 2003 is to reach 3.5 percent, inflation - 2.3 percent. Wages in the public sector are to increase by 4.0 percent. Budget income is to exceed 154 billion zlotys, expenditures - 193 billion zlotys.

Foreign Trade Gap Falls to 8.3 bn USD after July
Warsaw, Sept. 20: Poland's foreign trade deficit fell to 8 bn and 335.4 million USD after the first seven months of the year from 8 bn and 407.4 m USD after the same period of 2001, the Central Statistical Office said. The euro-denominated foreign trade deficit fell to 9 bn 161.5 m euros from 9bn and 406.4 m euros after July 2001. Exports in the January-July period totalled 21 bn and 915.9 m USD vs. 20 bn and 578.6 m USD after July 2001, and was up 6.5 pct. Exports in euros rose to 24 bn and 165.8 m euros from 22 bn and 956.6 m euros after July 2001, or it rose 5.3 percent. Imports in the seven-month period totalled 30 bn and 251.3 m USD against 28 bn and 986 m USD in the first seven months of 2001, a 4.4 percent rise. Imports in euros in the surveyed period grew by 3.0 percent to 33 bn and 327.3 m euros from 32 bn and 363 m euros after July 2001.

Gov't revises upward GDP rise forecast to 3.5 pct from 3.1 pct
Klarysew, Sept. 9: The government revised upward to 3.5 percent from 3.1 percent its GDP growth forecast for 2003, Finance Minister Grzegorz Kolodko said after an informal cabinet meeting in Klarysew on the same day. The government revised upward to 3.5 percent from 3.1 percent next year's GDP rise forecast. This is the budget of stabilisation and development.

Fischler: Last Phase of Talks in November Cracow, Sept. 13:EU commissioner for agriculture Franz Fischler said that all final compromises have to be reached by November when Polish and EU negotiators will open the last phase of negotiations. Asked about equal competition between Polish and EU farmers, Fischler said that this problem is much broader than just direct subsidies so much discussed in Poland recently. If we are speaking about competition, than this means we have to speak at the same time about costs and prices, as they are the most important elements of competition and decide about the success of a product. Speaking on prices, Fischler said Polish farmers will operate in similar price conditions as remaining farmers from the first day of Poland's EU membership. As for costs, Polish producers, according to Fischler will have an upper hand, in such areas as costs of land, production means and labour. There is no guarantee that 100 percent subsidies would reach in their entirety to farmers. Only in a small degree do farmers set prices for agri products.

Privatization of G-8 Delayed by Six MonthsLublin, Sept. 18: The finalization of the privatization of power plants from the G-8 group will be delayed by six months, this means it will take place in 2003 - Treasury Minister Wieslaw Kaczmarek announced. The company will be revalued, while investors who have been on the short list will be able to send-in their new offers. The minister also announced that at the turn of September the government will deal with the amendment of a programme of the restructuring and privatization of the oil sector.

Unemployment to Go Up to 18.6-18.8 Percent at Year's End
Cracow, Sept. 18: The unemployment rate will go up to 18.6-18.8 percent at the end of the year from 17.4 percent forecasted after August - deputy labour minister Andrzej Zdebski said. The unemployment rate will go up in September and October due to the inflow of school leavers to the market.

Government Adopted Anti-corruption PackageWarsaw, Sept. 17: Policemen and border guards will be allowed to have only a definite sum of private money while at work - reads one of the regulations included in an anti-corruption package passed by the government. While presenting the anti-corruption strategy at a press conference Interior Minister Krzysztof Janik said it was a set of anti-corruption recommendations for particular ministries which are to work out and implement detailed programmes in the coming months. The anti-corruption strategy which can be considered a part of "Safe Poland" programme provides for actions designed to combat corruption and work out appropriate behaviour standards. Janik explained that the strategy envisages, among other things, amendments to the laws on public orders and subsidies. Planned are also changes in civil service recruitment regulations.

Wave of Bankruptcies Possible after Poland Joins EU -Sadowski
Warsaw, Sep. 16: Poland may be threatened by a wave of company busts after it joins the EU, warns Zdzislaw Sadowski, chairman of the Polish Economic Society PTE. Government aid to firms is therefore a necessity. Before EU funds start bringing effects, we may suffer transitional hardships. The Polish industry is threatened even now, it must compete with imports very hard, and after accession the situation will be even more difficult. While capital assistance should be scaled down,
the state should offer something in the field of taxes and exchange rate policy as well as provide support to companies in the form of credit guarantees.

Higher exports, industrial output signal Q3 economic pick-up
Krynica, Sept. 8: A rise of exports and industrial production signal a possible economic pick-up in the third quarter of the year, Finance Minister Grzegorz Kolodko told newsmen during an Economic Forum Poland-East in Krynica. July's current account deficit was at a record-low level of 97 million USD, compared with June's 376 million USD. July's exports were
3 billion and 175 million USD, 24.2 percent more than in July 2001. Economists expect the GDP to be higher in the coming quarters than Q1's 0.5 percent, and the GDP for the whole 2002 may be above 1 percent. We estimate that the GDP was above 0.6 percent in the 2nd quarter of the year, and we expect the economy to accelerate to above 1 percent in the 3rd and 4th quarters of the year, which will translate into around one percent in the whole 2002, Adam Czyzewski, central bank's macroeconomic and structural analyses department director said. June's industrial production rose 3.2 percent from May and 2.1 percent year-on-year.
In July it grew by 2.9 percent from June and 6.0 percent from July 2001.

NBP head: Poland's EMU entry strategy in October
Krynica, Sept. 6: The strategy of Poland's entry to the euro zone, now under preparation, will probably be unveiled in October, National Bank of Poland president Leszek Balcerowicz has said. I hope that we will know more details in October. He reported that a NBP and finance ministry team which prepares Poland's entry strategy to the euro zone wants Poland to join the EMU two years after its joining the EU. Balcerowicz stressed the necessity of low inflation and lower budget deficit for the plans to succeed. It is very important that finance minister's assurances to cut budget deficit against what was originally planned should materialise. I think it is possible.

Every Third Pole to Use Mobile Phone by Year End
Warsaw, Sept. 4: By the end of the year one in three Poles (34 percent) will be using mobile phones (25.7 pct at the end of 2001), UBS Warburg analysts said in a report on the Polska Telefonia Cyfrowa mobile operator.

At Lowered Inflation Gov't Approves Higher Wage Indexation
Warsaw. Sept. 3: At the average annual inflation forecast in 2003 lowered to 2.3 percent from the originally forecasted 3.0 percent the government raised the real level of wages and social security benefits next year, the Labour Minister said. Jerzy Hausner said after the cabinet meeting that the council of ministers have approved for 2003 the wage indexation rate in the budget-financed sector by 4 percent, or 1.7 percent above inflation, while the originally planned inflation forecast included a one percent pay rise, in real terms. He added that the government has also approved a 3.7 percent nominal social security benefit indexation rate. The Labour Minister said that the government has no plans to widen the budget deficit in connection with a higher-than-planned real increase of wages and social security benefits in 2003, which will boost spending by 2.25 billion zlotys. The total additional wages will be higher by 1.25 bn zlotys, and pension benefits by one billion zlotys, Jerzy Hausner said.

Gov't Ok's Anti-Corruption Drafts
Warsaw, Sept. 3: The government passed several anti-corruption drafts, among other things obliging criminal suspects to account for their property and introducing safeguards against political bribery. The new laws, originally proposed by justice minister Grzegorz Kurczuk as part of the government's Safe Poland scheme, also foresee leniency for persons who admit to bribery of their own accord.

Humanitarian Aid - information material from Central Board of Customs

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Aid for Ukrainian Cement Plants

Employees of the Gorazdze Cement Plant SA, part of the Heidelberger Zement concern will take part in technical restructuring of the Ukrainian cement plant Dneprotsement. Heidelberger Zement wants to spread its activity to the East and is interested in investment projects in the central part of the Ukraine. A team of specialists for cooperation with the Ukraine has been established in the Polish plant.

Fewer Employees in Banking Sector

Information published by the Rzeczpospolita daily indicates that in 2000, commercial banks opened about 700 new outlets in Poland. Meanwhile, employment in the sector dwindled by about 2,000 persons. Rzeczpospolita informs that during the past three years the number of bank institutions in Poland went up 50 percent with the nearly steady employment in the sector. In 2000, PKO BP bank, which anyway has the best-developed banking network, opened most new outlets - 105 - thanks to which it now has 1214 departments and branches in the country. Last year, the bank started to open new outlets after several years of only a symbolic development of its network. Also in 2001, it will be a leader in this respect with 90 branches planned to be opened. PKO BP's biggest competitor, which has 400 outposts less, is Pekao SA but in 2000, it opened nearly the same number of new branches and this year is planning to open even more (more than 100). Next on the list is Kredyt Bank (69) followed by Invest-Bank, BIG Bank and Bank Handlowy. Each of the three latter opened more than 50 branches last year.

Light Industry: Good Results

Under-secretary of State in Ministry of Economy Henryk Ogryczak said on January 10, that net financial result for light industry was positive and amounted to PLN 21 million. In the previous year, the result was negative - minus PLN 108 million. 1145 enterprises employing a staff of about 230,000 functioned in the first half of 2000.

Foreign Ministry Protests EU Experts Decision

Warsaw, April 6: The Foreign Ministry officially protested against the planned decision of EU experts to include Poland in the group of countries of high BSE risk. Deputy Foreign Minister Stefan Meller “invited for talks” EC mission head to Warsaw Bruno Dethomas to hand him the aide-mémoire on the matter. Poland does not agree with the opinion of the EU Steering Committee for Science according to which Poland should be included in the III group of countries of higher and high probability of BSE cases occurrence. During the meeting Meller, who replaces Minister Wladyslaw Bartoszewski during the latter’s visit to Washington, expressed “deep concern” of the Polish authorities about the possibility of the decision which would be concordant with such an opinion of EC experts. “The Polish veterinary authorities believe that such a decision would be totally groundless and made heedless of arguments and information conveyed earlier to the EC”, reads a foreign ministry communiqué. According to the ministry, the decision to include Poland in the group of countries threatened with BSE would be discriminatory, would produce “considerable difficulties” for Polish exports and could negatively affect our country’s image not only within the EU. On behalf of the Polish government Meller asked the EC to re-analyse arguments of the Polish side and adopt an opinion corresponding to the real situation in our country. Agriculture Minister Artur Balazs and Poland’s chief veterinarian Andrzej Komorowski assured that Poland was a BSE-free country and Polish farmers did not feed cattle with meat-and-bone meal.

Poland Gives up Demands for Six Transition Periods in Environment

Warsaw, April 6: Poland has liberalised its demands regarding transition periods in harmonising its environment with EU norms, Poland’s chief negotiator with the EU Jan Kulakowski said. Kulakowski presented changes regarding transition periods, approved by the Cabinet on March 29. Poland gave up plans to seek six transition periods. It partly withdrew demands for transition periods in relation to three EU acts and specified its position on four EU directives, Kulakowski said. Deputy environment minister Janusz Radziejowski said that the most important changes included resignation from lengthy 10-year transition periods with regard to municipal and hazardous waste disposal. The government documents envision that Poland will have adjusted to EU standards relating to sewage treatment plants by 1 January 2016.

Sejm Adjusts Regulations to EU Legislation

Warsaw, March 30: The Sejm passed a package of laws to adjust them to European Union (EU) legislation. The Sejm voted 201-51, with 145 abstentions, to pass the laws on the restructuring of banks and companies, on the commercialisation and privatisation of state-run companies and on national investment funds (NFI) and their privatisation. The Sejm scrapped one of the regulations under which shares of one-man Treasury-owned joint stock companies can be bought for receivables after Poland joins the EU. The law bans state aid, which may disrupt competition by offering preferential treatment to selected projects or production of some goods. In the NFI law the law-makers eliminated restrictions in the area of the freedom of economic activity by citizens of one of EU member-states on the territory of another EU country. The change would also effect restrictions in free capital flows. Commercialisation through conversion of receivables as a privatisation method was eliminated from the law on commercialisation and privatisation of state-run companies. Under the law, foreigners will also be entitled to buy by instalments shares and stocks in Treasury-owned companies.

A new opportunity for facilitating a favourable business environment

for SMEs by improving access to relevant information has been established by the Council of Baltic Sea States (CBSS). Small and medium sized enterprises (SMEs) seeking business expansion and collaboration in the Baltic Sea Region have now a new tool to their disposal. On 13 March, the German Minister of Foreign Affairs, Mr. Joschka Fischer, opened the portal www.balticmarket.org. The event took place at the conference “Fostering Economic Cooperation in the Baltic Region” in Berlin. Through the portal, the SMEs will find information in English on the conditions for doing business as well as identifying investment opportunities in the region. www.balticmarket.org provides a one-stop entry point to information on business legislation, regulatory conditions and incentives for SMEs in the eleven member countries of the CBSS: Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Sweden and Russia. National information is maintained and updated by partners in the individual countries. The establishment of the portal followed an initiative of the trade ministers in the region and was supervised by the CBSS. The development of the project was managed by VINN, Norway. The portal is operated and maintained by VINN. Issues such as reduction of barriers to trade and investments and facilitating a favourable business environment for Small and Medium Enterprises (SMEs), are of particular importance for the further economic development of the region. We believe access to information on trade and business start-ups in the different member countries of the CBSS will become easier by using www.balticmarket.org, say Mr. Joschka Fischer, German Minister of Foreign Affairs.