Special extensions

As the 10th anniversary of their foundation approaches, special economic zones are growing in size and could win a stay of execution, extending the possibility of public aid for enterprises until 2025. At present, Poland's SEZs are set to expire in 2017, after 20 years of activity in Poland.

An amendment to the law on SEZs which will remove size limitations has already been drafted and is expected to enter the legislative process soon.

"We are currently waiting for approval from Waldemar Pawlak, the new Minister of Economy," explained Teresa Korycińska, Deputy Director of the Regional Development Department in the Ministry of Economy.

After the amendment is signed, it will enter Parliament. According to Tomasz Olkiewicz, SEZ specialist at MDDP Michalik Dłuska Dziedzic & Partners Tax Advisors, the whole process will take six to nine months.

In addition, SEZ authorities believe that it will be possible to postpone the termination of the zones by improving their performance.

"Special economic zones are the only instruments which have successfully increased the direct investment rate in Poland," explained Olkiewicz. "Companies say they would not have invested without the advantages of SEZs. If we want to continue to develop as fast as we are now, we need to expand the area and the timeframe of SEZs' activity," he added.

At the time of their inception, Poland's total SEZ area was limited to 8,000 ha, but this limit was expanded in 2006. "At the moment we are already reaching the limit of 12,000 ha," noted Korycińska.

Although debate continues, any decision on the future of SEZs will be a domestic matter. "Contrary to popular belief, the timing and the extent of the expansion do not depend on EU decisions. Poland does not have any restrictions on this issue in our accession treaty," explained Korycińska.