Let the courts decide

   Like a banshee that keeps coming back to witness its grisly past deeds, the ongoing spat between the Treasury Ministry and Netherlands' based insurer group Eureko over Powszechny Zaklad Ubezpieczen (PZU) took what appeared to be a turn for the worse last week – at least in Polish eyes.

   This time Brussels played host to the controversy as European Union (EU) bureaucrats took a look inside the pandora's box that Treasury Minister Andrzej Chronowski has unwittingly opened.

   Prime Minister Jerzy Buzek flew to Brussels to talk ostensibly about energy and environmental issues and questions about Poland's accession to the European Union.

   Meanwhile, Eureko has been lobbying for the EU's governing body, the European Commission (EC), to take a firm hand over the Eureko/PZU controversy. Some commentators even said the company wanted the affair to directly affect Poland's early accession to the EU.

   This probably forced the hand of EC commissioner Romano Prodi who was reported to have had a quiet word with Buzek about the issue on Eureko's behalf.

   But while some European bureaucrats close to the accession shook their heads and warned of serious consequences for Poland, others were quick to play down the wrangling.

   Above all, taking the affair to Brussels has highlighted the limitations of the EC when it comes to dealing with Poland's internal affairs. Even Prodi himself was reported to have said the EU could only help Eureko to a degree. And ultimately, Eureko's complaints will not affect Poland's standing in the eyes of many European politicians who are eager for the country to join the union.

   To be blunt, Eureko can't expect to gather a great deal of support while negotiations are going on. Moreover, if it pushes its claim too far, things could backfire. Many analysts are now saying that only the courts in Poland should be dealing with this, and only then can the issue be dealt with properly.

   Last week, the Supreme Board of Inspection (NIK) issued a report saying much of the confusion stemmed from an improperly signed privatization agreement and ambiguous activity on the part of former Treasury Minister Emil Wasacz. In its report on PZU, NIK sided with Eureko and BIG Bank Gdanski (BIG BG) as investors of the insurer, but didn't approve of the division of power on the PZU board.

   Above all, many politicians in Europe want, and indeed need, Poland to become part of the EU sooner rather than later. Eureko is an investor not a politician and should stay out of politics to win its case. By lobbying EU bureaucrats to take action, the company could be making a rod for its own back.