Flocking in

Marcin Kaszuba, deputy chief of Poland's agency for foreign investors (PAIiIZ) said early last week that foreign direct investment (FDI) inflows were likely to reach $10 (zł.33) billion for 2005. The large sum can mainly be put down to Poland attracting big projects from companies such as Michelin and LG Philips electronics.

In 2004, Poland attracted $8 (zł.26.5) billion in investments, still short of the year 2000 when FDI peaked at a record $10.6 (zł.35.2) billion. The figure for 2005 is just shy of that mark.

The high figures are something of an anomaly, as Poland's investment climate is considered far from ideal at the moment. According to Kaszuba: "Investors ask about euro prospects as a matter of priority, but so far the fact that we [Poland] don't have a euro entry target date has not stopped investment inflows. A domino effect is visible. Since FDI inflows began to pick up, there is psychology at play. Potential investors see others flocking in, which serves to attract them as well."

Concern about the investment climate in Poland grew when the new government - voted into office after elections in September - stated that it had no intention of preparing Poland for eurozone entry during its four-year term.

When asked about Slovakia's recent surprise early entry to the pre-euro exchange-rate mechanism, Kaszuba played down its impact for now, saying: "In the longer term this could have a negative impact on Poland's image, particularly if other central European peers followed Slovakia's example. But for now Poland seems to be on a roll." (Reuters)