Poland awaits EC decision on transition periods in public finances

negotiations The next two weeks will decide if Poland will be able to close the negotiations concerning public finances auditing during the Portuguese presidency of the European Union (EU), which ends in June. Before negotiations Poland promised to hold the line on public spending and prepare exact services, which ought to audit the public and community spending. Poland also agreed that EU specialists would audit the use of community money spent in Poland. Poland applied for four transition periods and an additional, special regulation in EU rules and is awaiting an agreement with the EU for lowered value-added-tax (VAT) on food services, zero tax for some books and minimal excise-tax for tobacco. The European Commission (EC) did not say no, however it has very serious doubts about the suggestions arguing for example that transition-periods are special tools and should be accompanied by harmonizing with EU standards. (Parkiet, page 10) M.M.