Verheugen claims Eureko dispute may undermine Poland's EU credibility

European Union (EU) Enlargement Commissioner Guenter Verheugen has warned that Poland's failure to honor a deal allowing pan-European group Eureko to take control of the country's leading insurer PZU could bring into question Poland's credibility as a partner in negotiations. While stressing that the European Commission (EC) was not directly involved in the dispute, Verheugen said, "The view of EU member states concerned is that the agreement must be kept." The EU has already said the dispute could scare off potential investors at a time when Poland badly needs to boost flagging economic growth. Treasury Minister Wieslaw Kaczmarek postponed the sale of PZU until 2003 at the earliest, and Eureko is threatening to take the case to international arbitration unless it is allowed to gain control of the company. (Prawo i Gospodarka, p. 8; Reuters) M.T.