Two steps closer to the EU

Ah, spring: The season of optimism. But if the promise of warmer weather is not enough to convince you that things could soon be looking a bit brighter Poland-wide, consider that the government last week crossed off two more chapters in its bid to join the European Union, bringing this country closer to EU accession. Good news. There's a hitch, though: The Dutch are threatening to withhold their support for Poland's membership unless it receives assurances that the Democratic Left Alliance (SLD) will protect the interests of foreign investors, namely pan-European insurer Eureko. The Dutch are right to link the Eureko issue with Poland's desire to enter the European political and economic bloc. Unless the SLD agrees to honor the deal signed with the previous government under which Eureko would take a controlling stake in No. 1 insurer Powszechny Zakład Ubezpieczeń (PZU), Poland's reputation as a trustworthy business partner will be destroyed and tough to restore. That prospect would spell disaster for this country's efforts to build a dynamic, competitive economy and ramp up Polish living standards in line with Western European norms. Poland badly needs foreign and domestic investment and it should make every effort to right wrongs and encourage potential suitors.

But whether and when SLD will understand that it can't have it both ways - ignoring investor rights while expecting equal treatment in EU membership talks - remains to be seen. Fortunately, there are indications that not all SLD ministers subscribe to the same policy of insensitivity toward investment and foreigner investors. At last week's WBJ business breakfast, Economy Minister Jacek Piechota apologized for the recent "simplified statements of 'some' politicians," saying that these were "not the norm in Poland." He also criticized a fellow parliamentarian who had ridiculed an investment in one of Poland's special economic zones because it had created only 5,000 jobs, instead of 15,000. The economy minister also fueled hope last month that the Eureko deal would go through when he said the government would honor its agreement with the Dutch investor, countering the statements coming out of the Treasury Ministry. Despite the mess with Eureko, steady progress in EU negotiations since taking office is positive for Poland and a triumph for the coalition government. Peasants Party (PSL) leader Jarosław Kalinowki, a junior partner in the coalition, pushed hard for a 12-year transition period on foreign purchases of Polish farmland. Poland's successful holdout for a dozen years while Hungary and the Czech Republic seemed content last year to accept seven has the latter two now scrambling for arguments to reopen negotiations. In retrospect, Poland looks like a pretty shrewd dealmaker. The government would look even better if it could negotiate its way out of the PZU fiasco.