Piechota admits special economic zone incentives may have to be scrapped

Poland is considering the payment of compensation to investors operating in the country's special economic zones, should compliance with European Union (EU) demands mean breaking agreements signed with them. Economy Minister Jacek Piechota said yesterday in Brussels, "This problem must be resolved if we want to close the negotiating chapter on competition." Businesses i nvesting in Poland's special economic zones on the basis of regulations dating back to 1994 have enjoyed certain rights, including exemption from corporate tax. However the EU does not recognize such concessions. Piechota said he hopes Poland can close the competition chapter with the EU by June this year. Piechota is the first Polish official to admit publicly that the government will probably be forced by the EU to abandon some incentives for investors in the zones. (Prawo i Gospodarka, p. 1, 12; Reuters) P.W.