Editor's note: The government won't show their privates

Those who would be eager to face the privatization problems that have been mounting ever since Law and Justice won last year's elections are few and far between. For a couple of months the Polish government has been the target of many financial institutions who complain that the Treasury has caused them injury. They say they have been treated unfairly and that, to put it openly, their businesses are incurring losses because they have decided to invest in Poland and take part in the privatization process. One of those companies has recently announced that it will be fighting for its rights in court and demanding damages because doing business with the Polish government caused it to lose money. 

The privatization mess is being observed with astonishment by companies remaining in direct conflict with the Polish government, as well as the European Commission.

The latter wants to know the reasons and motives behind the Polish government's decision to block the BPH-Pekao SA tie-up, which would produced Poland's largest bank, outstripping the current state-controlled leader in the market.

And that's where all the complications start, because the government hasn't clearly stated its view on the privatization of the entities they control. And there are many questions that remain unanswered: Does PiS treat privatization as a means of increasing incomes to the budget, enlarging capital on the market or changing the structure of economy? Does it want to be an active player on the market or just create mechanisms stimulating its development? And last but not least: Which sectors of the economy should be controlled by the state and to what extent?

Regardless of which privatization strategy the government is going to adopt, foreign investors should be familiar with it. Although it doesn't sound too optimistic - it's better for them to give up their investments in Poland than feel swindled later, and complain to the world about Poland being an unprofitable investment target.

Eliza Durka

Editor-in-chief