A-Z of EU membership harmonization: B for banks and budget

Poland A.M. will run a series of articles on the A to Z of how EU membership will affect Poland and what the country still has to do in order for these sectors to be in harmony with EU standards. Banks and pension funds have already largely adapted to EU standards. Since October 1, 2002, the public has the right to open bank accounts in all EU countries and engage into short-term bank investments. Cooperative banks now have until 2008 to adapt EU's standard of required own capital, and brokerage houses will be obliged to return clients' money, (up to euro20,000), should the house go bankrupt. Soon pension funds will be free to invest in any EU country. BUDGET: Poland is obliged to pay its entire contribution to the EU budget. This is equal to around 1.1% of national income, which means that it will have to pay euro2.4 billion. During 2004-2006, transfers and subsidies from the EU will surpass contributions by euro6.4 billion. However, the funds are earmarked for both local budgets and to finance agriculture. The national budget is supposed to receive funds amounting to around euro1 billion within the first three years after accession. (Rzeczpospolita, Dec. 14-15, p. A3) K.Z.