Poland earmarks next year's privatization revenue for social security reform

Treasury Minister Andrzej Chronowski told delegates to an economic seminar in Warsaw that the government envisages attracting up to zl.18 billion in privatization revenues next year. About zl. 11 billion of this revenue would be injected into reform of the social security system. Among the companies to be privatized next year are the steel mills Huta Katowice and Huta Sendzimira, as well as the energy sector, the defense industry, and the petroleum sector. The privatization of Telekomunikacja Polska S.A (TPSA), LOT Polish Airlines (LOT) and the insurer Powszechny Zaklad Ubezpieczen (PZU) will continue. The Treasury also hopes to jump-start the privatization of the largest retail bank, PKO BP SA, and the Polish State Railways (PKP). As of this year, the target goal zl. 20.1 billion from privatization should be achieved, with zl. 12 billion expected to be used for reforming the pension system. In the last 10 years, Poland has privatized 5,119 of its 8,500 state-owned companies, earning $649 billion. Today private companies in Poland account for 60% of the GDP and employ 65% of the workforce. (Rzeczpospolita, p. B1).