European Commission demands the axe for Special Economic Zones by 2006

On Monday the Economy Ministry presented representatives of a dozen foreign investors operating in Special Economic Zones (SEZ) a demand from the European Commission (EC) to decrease state assistance for companies op erating in these zones. The change will affect at least 70 companies, including Philips, FIAT and SCG, which entered the Zones in 2000. Now they would only receive a subsidy amounting to half of the value of the inv estment, which was some time ago lowered to 75% and moreover even this would have to end by 2006. Deputy Economy Minister Ewa Freyberg, asked the c ompanies to lobby the EC, saying that they have more influence in Brussels than the government does on this issue and stressed that the deadline for them to act is October 16. It is on this date that Poland wants to close the competition chapter and complete negotiations about SEZ's. The investors are disappointed and claim that the government has stopped fighting for their rights. Moreover, the companies say they are shocked and feel cheated. The more vociferous ones are talking about suing the government, or pulling the plug on their investments. (Puls Biznesu, pp. 1, 6) M.M.