This week's events covered in Poland AM
ECONOMICS
The Business Center Club has slammed the government's draft of a VAT Bill claiming it was hastily prepared, full of mistakes, and will prove disastrous for both the state and the competitiveness of Polish companies in Europe.
Businesses began to feel the economic revival last year, as over 100 listed companies, which have already published their 2003 annual reports, jointly recorded a 5.5 percent increase in sales, and a rise in annual profits of almost 35 percent. The weak złoty and the benefits of restructuring are cited as the main factors behind the improvements.
The media was full of rumors last week that the government was yet again dragging its heels over key privatizations. Since no contracts were signed in January, the State Treasury had to issue securities worth zł.565.2 million.
The złoty last week continued its downward slide against the euro to reach a new low. This was partially spurred on by the announcement that Leszek Miller will resign as head of the SLD but still remain as prime minister.
IT sector analysts believe that there will be no major change in the value of the IT market, which is worth an annual zł.16 billion. Furthermore, experts say that some large projects will be delayed until 2005 or even beyond, which will mean only moderate growth is possible, being driven by the public sector striving to meet new EU standards.
The Institute for Market Economy Research (IBnGR), an independent economic think-tank, foresees at least three years of robust economic growth. IBnGR has predicted that GDP growth rates for 2004-2006 will be 4.5, 4.9, and 5.1 percent respectively.
President Aleksander Kwaśniewski has appointed Andrzej Wojtyna, Andrzej Sławiński and Dariusz Filar to the Monetary Policy Council. Wojtyna is an economic aide to Kwaśniewski, Sławiński is a professor at the Warsaw School of Economics and serves as an adviser to the National Bank of Poland, while Filar is the chief economist at Bank Pekao.
The currency reached a new low of zł.4.89 to the euro after news that the privatization of PKO BP could be delayed until next year. The market's reaction to the news puts a further strain on the budget, as a weaker złoty adds to debt servicing costs.
Manufacturing output growth in January beat expectations by nearly five percent. The increase of 14.3 percent on an annual basis took economists by surprise. "That's the best data we've had since 1999," said Piotr Bielski, an economist at BZ WBK.
Parliament has approved legislation extending the Securities and Exchange Commission's powers to prevent and investigate stock exchange fraud.
POLITICS
The center-right Civic Platform (PO) is now the clear favorite to win June's elections to the European Parliament. According to a Rzeczpospolita poll, the party would secure 19 out of Poland's 54 seats in Strasbourg, while the ruling leftist coalition would grab only nine or ten seats.
The State Treasury has drafted guidelines on the restitution of property illegally seized during or after World War II. According to the draft, former owners of property, or their descendants, would receive vouchers which they could exchange for property set aside for this purpose, or sell them back to the state.
Krzysztof Janik continues to be the darling of the Democratic Left Alliance (SLD). Having hardly had time to get used to being the leader of the SLD Parliamentary Club, rumors are spreading fast that he is tipped to take over as party leader in the wake of Miller's resignation.
Following the decision made by Prime Minister Leszek Miller to step down as the head of the SLD, party members are now questioning how long Miller should remain as prime minister. Many see him as a major liability in the approaching European Parliamentary elections, and therefore believe he should be ditched as soon as possible.
Deputy Finance Minister Robert Kwaśniak has been sacked following allegations of a conflict of interests. The minister, who was in charge of customs and excise, was dismissed at the instigation of Minister Andrzej Raczko. The Finance Ministry's spokesman, Wiktor Krzyżanowski, was also dismissed.
INTERNATIONAL
Of all the countries set to join the EU in May, Poland has made the least progress in terms of making use of ISPA funds, though it does have until 2007 to use up the total of zł.6.8 billion (€1.4 billion) from that source. Over the past three years, the government has managed to use only zł.1.83 billion (€376 million), or 26 percent of the total amount allocated.
Jean-Charles Leygues, the European Commission's regional aid director, said that Poland can begin to use EU structural funds as the Commission has already accepted six out of seven operational programs put forward by the government.
The Swedish Construction Workers' Union launched a campaign with posters depicting cheap laborers and tawdry prostitutes from Poland and the Baltic States working for Swedish employers. This is due to the upcoming expansion of the EU and is supposed to attract the public's attention to the importance of illegal work in the construction sector. According to a recent poll, 57 percent of Swedes are in favor of placing restrictions on the employment of residents from the future EU member states.
Twelve Polish soldiers were hospitalized after an attack on the Camp Charlie army base in Iraq last week. Two vehicles laden with explosives smashed down the camp's gates injuring 26 Polish soldiers and killing at least eleven Iraqi civilians.
During a seminar in Katowice on coal mining, Polish delegates were no doubt pleased to hear that the European Commission fears that, since many countries are closing down their mines, an energy deficit could appear in around 2015. As a result, the EC ruled that it is legal for a state to subsidize mining activities.
DOMESTIC
In an interesting twist in the investigation into why Bumar lost an Iraqi arms contract, military intelligence officials have said that they received strong signals from Washington that the conflict around the tender should be calmed in order for Polish companies to avoid losing out on future contracts in the Middle East.
Gazeta Wyborcza in Ciechanów recently discovered that old meat was being repackaged and new 'best before' stickers added before the meat was resold as fresh. The incident occurred in a warehouse owned by one of the largest meat producers, Sokołów, a company certified to provide food products for NATO.
Following the success of the anti-corruption unit in the Silesian police force, a decision has been taken to create similar units in all regional police departments.
Children in the Poznań Boys' Choir are now being counseled and given medical support following a revelation that the choir's former conductor, Wojciech K., has not only been accused of pedophilia, but has also tested HIV positive.
The Supervisory Board of public television (TVP) has appointed four new members to the management board. Stanisław Wójcik, currently the head of the Department of Analyses and Planning will supervise finances, Piotr Gaweł advertising, and Marek Hołyński new technology.
In an unexpected twist in the trial of former PZU Życie CEO Grzegorz Wieczerzak, who is accused of fraud and mismanagement, an expert told the court that her calculations of the state-owned company's losses incurred through the defendant's mismanagement were partially incorrect. If the court rules that the losses are impossible to calculate, all charges will be dropped against the defendant.
The Law and Justice (PiS)/Civic Platform (PO) coalition which was ruling the Warsaw City Council, has collapsed. PiS voted with the Polish Families' League to dismiss the PO council leader, which prompted them to pull out of the coalition. During the process, many bitter words were exchanged.
The Business Center Club has slammed the government's draft of a VAT Bill claiming it was hastily prepared, full of mistakes, and will prove disastrous for both the state and the competitiveness of Polish companies in Europe.
Businesses began to feel the economic revival last year, as over 100 listed companies, which have already published their 2003 annual reports, jointly recorded a 5.5 percent increase in sales, and a rise in annual profits of almost 35 percent. The weak złoty and the benefits of restructuring are cited as the main factors behind the improvements.
The media was full of rumors last week that the government was yet again dragging its heels over key privatizations. Since no contracts were signed in January, the State Treasury had to issue securities worth zł.565.2 million.
The złoty last week continued its downward slide against the euro to reach a new low. This was partially spurred on by the announcement that Leszek Miller will resign as head of the SLD but still remain as prime minister.
IT sector analysts believe that there will be no major change in the value of the IT market, which is worth an annual zł.16 billion. Furthermore, experts say that some large projects will be delayed until 2005 or even beyond, which will mean only moderate growth is possible, being driven by the public sector striving to meet new EU standards.
The Institute for Market Economy Research (IBnGR), an independent economic think-tank, foresees at least three years of robust economic growth. IBnGR has predicted that GDP growth rates for 2004-2006 will be 4.5, 4.9, and 5.1 percent respectively.
President Aleksander Kwaśniewski has appointed Andrzej Wojtyna, Andrzej Sławiński and Dariusz Filar to the Monetary Policy Council. Wojtyna is an economic aide to Kwaśniewski, Sławiński is a professor at the Warsaw School of Economics and serves as an adviser to the National Bank of Poland, while Filar is the chief economist at Bank Pekao.
The currency reached a new low of zł.4.89 to the euro after news that the privatization of PKO BP could be delayed until next year. The market's reaction to the news puts a further strain on the budget, as a weaker złoty adds to debt servicing costs.
Manufacturing output growth in January beat expectations by nearly five percent. The increase of 14.3 percent on an annual basis took economists by surprise. "That's the best data we've had since 1999," said Piotr Bielski, an economist at BZ WBK.
Parliament has approved legislation extending the Securities and Exchange Commission's powers to prevent and investigate stock exchange fraud.
POLITICS
The center-right Civic Platform (PO) is now the clear favorite to win June's elections to the European Parliament. According to a Rzeczpospolita poll, the party would secure 19 out of Poland's 54 seats in Strasbourg, while the ruling leftist coalition would grab only nine or ten seats.
The State Treasury has drafted guidelines on the restitution of property illegally seized during or after World War II. According to the draft, former owners of property, or their descendants, would receive vouchers which they could exchange for property set aside for this purpose, or sell them back to the state.
Krzysztof Janik continues to be the darling of the Democratic Left Alliance (SLD). Having hardly had time to get used to being the leader of the SLD Parliamentary Club, rumors are spreading fast that he is tipped to take over as party leader in the wake of Miller's resignation.
Following the decision made by Prime Minister Leszek Miller to step down as the head of the SLD, party members are now questioning how long Miller should remain as prime minister. Many see him as a major liability in the approaching European Parliamentary elections, and therefore believe he should be ditched as soon as possible.
Deputy Finance Minister Robert Kwaśniak has been sacked following allegations of a conflict of interests. The minister, who was in charge of customs and excise, was dismissed at the instigation of Minister Andrzej Raczko. The Finance Ministry's spokesman, Wiktor Krzyżanowski, was also dismissed.
INTERNATIONAL
Of all the countries set to join the EU in May, Poland has made the least progress in terms of making use of ISPA funds, though it does have until 2007 to use up the total of zł.6.8 billion (€1.4 billion) from that source. Over the past three years, the government has managed to use only zł.1.83 billion (€376 million), or 26 percent of the total amount allocated.
Jean-Charles Leygues, the European Commission's regional aid director, said that Poland can begin to use EU structural funds as the Commission has already accepted six out of seven operational programs put forward by the government.
The Swedish Construction Workers' Union launched a campaign with posters depicting cheap laborers and tawdry prostitutes from Poland and the Baltic States working for Swedish employers. This is due to the upcoming expansion of the EU and is supposed to attract the public's attention to the importance of illegal work in the construction sector. According to a recent poll, 57 percent of Swedes are in favor of placing restrictions on the employment of residents from the future EU member states.
Twelve Polish soldiers were hospitalized after an attack on the Camp Charlie army base in Iraq last week. Two vehicles laden with explosives smashed down the camp's gates injuring 26 Polish soldiers and killing at least eleven Iraqi civilians.
During a seminar in Katowice on coal mining, Polish delegates were no doubt pleased to hear that the European Commission fears that, since many countries are closing down their mines, an energy deficit could appear in around 2015. As a result, the EC ruled that it is legal for a state to subsidize mining activities.
DOMESTIC
In an interesting twist in the investigation into why Bumar lost an Iraqi arms contract, military intelligence officials have said that they received strong signals from Washington that the conflict around the tender should be calmed in order for Polish companies to avoid losing out on future contracts in the Middle East.
Gazeta Wyborcza in Ciechanów recently discovered that old meat was being repackaged and new 'best before' stickers added before the meat was resold as fresh. The incident occurred in a warehouse owned by one of the largest meat producers, Sokołów, a company certified to provide food products for NATO.
Following the success of the anti-corruption unit in the Silesian police force, a decision has been taken to create similar units in all regional police departments.
Children in the Poznań Boys' Choir are now being counseled and given medical support following a revelation that the choir's former conductor, Wojciech K., has not only been accused of pedophilia, but has also tested HIV positive.
The Supervisory Board of public television (TVP) has appointed four new members to the management board. Stanisław Wójcik, currently the head of the Department of Analyses and Planning will supervise finances, Piotr Gaweł advertising, and Marek Hołyński new technology.
In an unexpected twist in the trial of former PZU Życie CEO Grzegorz Wieczerzak, who is accused of fraud and mismanagement, an expert told the court that her calculations of the state-owned company's losses incurred through the defendant's mismanagement were partially incorrect. If the court rules that the losses are impossible to calculate, all charges will be dropped against the defendant.
The Law and Justice (PiS)/Civic Platform (PO) coalition which was ruling the Warsaw City Council, has collapsed. PiS voted with the Polish Families' League to dismiss the PO council leader, which prompted them to pull out of the coalition. During the process, many bitter words were exchanged.
