Warsaw Business Journal OnlineTuesday, March 30th, 2004 Tuesday, March 30th, 2004 29th March 2004 The week's events covered in Poland AM From Warsaw Business Journal Following recent economic data which showed a record rise in exports, analysts now believe that Q1 economic growth will rise to as much as 5.8 percent. Economics Following recent economic data which showed a record rise in exports, analysts now believe that Q1 economic growth will rise to as much as 5.8 percent. However, the boom may not last as rising sales have been attributed to public and corporate fears of tax changes after the nation joins the EU on May 1. Analysts believe that the new VAT bill should not be signed by the president, but should first be examined by the Constitutional Tribunal. Lawyers have found clauses in the bill that were either very vague or that violated the principle of equality. Law and Justice (PiS) announced that it has started working on amendments that should be ready within the next two weeks. Only a small percentage of the zl.14 billion net profits posted by domestic industrial companies in 2003 will be earmarked for job creation. Instead, the bulk will be spent on regaining economic stability, the covering of losses caused by stagnation, the accelerated modernization of firms and the purchasing of competitors in a bid to increase market share. The contributions paid by entrepreneurs to the Social Security Office (ZUS) will rise sharply next year, it has been reported. According to the draft social security bill to be discussed by the government this week, entrepreneurs may have to pay up to twice as much in contributions as previously. Politics The ruling Democratic Left Alliance's (SLD) roller coaster ride in office took a decided nose dive as tension publicly erupted following the announcement that a group of SLD deputies centered around Sejm Speaker Marek Borowski was on the verge of leaving the SLD in order to set up its own party. In an attempt to counter the initiative of Marek Borowski to form a new party, Krzysztof Janik, the head of the SLD, is to move the meeting of the SLD National Council forward from March 30 to March 27 and hopes to persuade Prime Minister Leszek Miller to resign. Borowski plans to officially announce the formation of a new political party on March 28. The chances of anyone healing the rift within the ruling SLD seem somewhat slim at present, given that its 192 deputies have now aligned themselves into a number of rival camps led by Marek Borowski, Sylwia Pusz, Aldona Michalak and Krzysztof Janik. However, they do all agree that Leszek Miller must stand down as prime minister. Miller, meanwhile, stubbornly refuses to budge from office, even though the government's poor ratings in the polls are also magnifying tensions within the SLD's coalition partner, the Labor Union. Sources close to the government have revealed that Prime Minister Leszek Miller will announce his resignation on Saturday, May 4, after the country joins the EU. According to senior SLD figures, the three most likely candidates to replace him are Józef Oleksy, Marek Belka and Wlodzimierz Cimoszewicz. International President Aleksander Kwasniewski and the defense minister paid a visit to the Middle East last week. While the minister paid a flying visit to his troops in Iraq, President Kwasniewski in Saudi Arabia declared that Poland will continue to stand by the Americans right to end. The Civic Platform held a stormy meeting to hammer out its stance on the EU Constitution. While it declared that some form of compromise was possible, the party said that, whatever happens, the government must ensure that Poland maintains its power to block unfavorable budget decisions, as well as those related to security and international policy. The EU has declared that subsidies for the production of butter and powdered milk will be introduced for the new member states, including Poland, but only gradually. The Polish Dairy Farmers Union claims that this is a clear case of discrimination which will greatly weaken their competitiveness and are therefore protesting against the decision. Last week's talks between Prime Minister Leszek Miller and German Chancellor Gerhard Schroder have been seen as greatly advancing negotiations over the EU constitution. Indeed, within the coming weeks, the country is likely to come to a compromise with its Western neighbor over the EU constitution, but only if the new system being discussed will ensure that Poland is guaranteed a strong position within the EU's structures. Following talks in Madrid with Jose Luis Rodrigez Zapatero, the future prime minister of Spain, Prime Minister Leszek Miller announced that, "Poland and Spain want to keep an alliance with regard to the EU constitution. If they change their position on the matter of counting the votes in the European Council, they will do it together." It seems that Spain will ultimately change its stance on the Nice Treaty, although Miller still hopes a solution that is satisfactory to both countries will be possible. The government has changed its stance on the Nice voting system, with Foreign Affairs Minister Wlodzimierz Cimoszewicz admitting at the EU leaders' summit in Brussels last week that he "does not exclude the possibility of accepting a compromise based on a double majority voting system." However, he did add that a lot still depends on the details. The summit's agenda also included talks on the wording of the EU constitution's preamble and the solidarity provision on fighting terrorism, which obliges EU member states to give military aid to any EU country that suffers a terrorist attack. Domestic One of the nation's most distinguished essayists and translators, Zbigniew Kubiak, died last week aged 73. He translated writers such as Virgil, St. Augustine and Byron, but is best known as the author of the Mitologia Greków i Rzymian trilogy, which became an outstanding bestseller. Leading TV and newspaper journalists and editors borrowed a cage from Warsaw ZOO and placed it outside the Sejm before taking 30-minute shifts to sit in it. They started a three-day protest against a court sentence served on a local newspaper editor who allegedly slandered a local government official. The law based on which the sentence was handed down dates back to the darkest days of the communist period. Last week, Lew Rywin tried to explain in court why he was involved in the biggest corruption scandal of the decade, officially stating that he was Wanda Rapaczynska's messenger. In order to become the president of Polsat, he had to fulfill a special mission, claiming he was sent by Rapaczynska to Adam Michnik to let him know that the sale of Polsat may require an 'extraordinary cost.' Rapaczynska and Michnik immediately refuted his claims. A zl.2 million bail was set for Grzegorz Wieczerzak, the former president of life insurer PZU Zycie SA, who has been languishing in custody since July 2001. The former PZU Zycie president, accused of having acted against the company's interests and thus causing the firm to incur losses of zl.173.5 million, has until May 15 to raise the bail. Bailiffs have confiscated property belonging to the curia of the archbishop of Gdansk worth several hundred thousand zlotys. However, this figure is but a mere fraction of the total debts amassed by the church's publishing house, Stella Maris, which could amount to anywhere up to zl.40 million. If the debts, which were run up by its former manager, Father Zbigniew B., who currently stands accused of money laundering, are not settled soon, the bailiffs may have to auction off items from the curia's vast array of antique possessions, including a table on which it is alleged that the Peace Treaty of Oliwa was signed in 1660. Advertisement Real estate About us | Staff list | Feedback | Advertise | Privacy Policy | FAQ | Help | Contact Š 1995 - 2003 New World Publishing Polska. All rights reserved. Republication or re-dissemination of the contents of this screen are expressly prohibited without the prior written consent of New World Publishing Polska Sp. z o.o. 29th March 2004 The week's events covered in Poland AM From Warsaw Business Journal Following recent economic data which showed a record rise in exports, analysts now believe that Q1 economic growth will rise to as much as 5.8 percent. Economics Following recent economic data which showed a record rise in exports, analysts now believe that Q1 economic growth will rise to as much as 5.8 percent. However, the boom may not last as rising sales have been attributed to public and corporate fears of tax changes after the nation joins the EU on May 1. Analysts believe that the new VAT bill should not be signed by the president, but should first be examined by the Constitutional Tribunal. Lawyers have found clauses in the bill that were either very vague or that violated the principle of equality. Law and Justice (PiS) announced that it has started working on amendments that should be ready within the next two weeks. Only a small percentage of the zł.14 billion net profits posted by domestic industrial companies in 2003 will be earmarked for job creation. Instead, the bulk will be spent on regaining economic stability, the covering of losses caused by stagnation, the accelerated modernization of firms and the purchasing of competitors in a bid to increase market share. The contributions paid by entrepreneurs to the Social Security Office (ZUS) will rise sharply next year, it has been reported. According to the draft social security bill to be discussed by the government this week, entrepreneurs may have to pay up to twice as much in contributions as previously. Politics The ruling Democratic Left Alliance's (SLD) roller coaster ride in office took a decided nose dive as tension publicly erupted following the announcement that a group of SLD deputies centered around Sejm Speaker Marek Borowski was on the verge of leaving the SLD in order to set up its own party. In an attempt to counter the initiative of Marek Borowski to form a new party, Krzysztof Janik, the head of the SLD, is to move the meeting of the SLD National Council forward from March 30 to March 27 and hopes to persuade Prime Minister Leszek Miller to resign. Borowski plans to officially announce the formation of a new political party on March 28. The chances of anyone healing the rift within the ruling SLD seem somewhat slim at present, given that its 192 deputies have now aligned themselves into a number of rival camps led by Marek Borowski, Sylwia Pusz, Aldona Michalak and Krzysztof Janik. However, they do all agree that Leszek Miller must stand down as prime minister. Miller, meanwhile, stubbornly refuses to budge from office, even though the government's poor ratings in the polls are also magnifying tensions within the SLD's coalition partner, the Labor Union. Sources close to the government have revealed that Prime Minister Leszek Miller will announce his resignation on Saturday, May 4, after the country joins the EU. According to senior SLD figures, the three most likely candidates to replace him are Józef Oleksy, Marek Belka and Włodzimierz Cimoszewicz. International President Aleksander Kwaśniewski and the defense minister paid a visit to the Middle East last week. While the minister paid a flying visit to his troops in Iraq, President Kwaśniewski in Saudi Arabia declared that Poland will continue to stand by the Americans right to end. The Civic Platform held a stormy meeting to hammer out its stance on the EU Constitution. While it declared that some form of compromise was possible, the party said that, whatever happens, the government must ensure that Poland maintains its power to block unfavorable budget decisions, as well as those related to security and international policy. The EU has declared that subsidies for the production of butter and powdered milk will be introduced for the new member states, including Poland, but only gradually. The Polish Dairy Farmers Union claims that this is a clear case of discrimination which will greatly weaken their competitiveness and are therefore protesting against the decision. Last week's talks between Prime Minister Leszek Miller and German Chancellor Gerhard Schroder have been seen as greatly advancing negotiations over the EU constitution. Indeed, within the coming weeks, the country is likely to come to a compromise with its Western neighbor over the EU constitution, but only if the new system being discussed will ensure that Poland is guaranteed a strong position within the EU's structures. Following talks in Madrid with Jose Luis Rodrigez Zapatero, the future prime minister of Spain, Prime Minister Leszek Miller announced that, "Poland and Spain want to keep an alliance with regard to the EU constitution. If they change their position on the matter of counting the votes in the European Council, they will do it together." It seems that Spain will ultimately change its stance on the Nice Treaty, although Miller still hopes a solution that is satisfactory to both countries will be possible. The government has changed its stance on the Nice voting system, with Foreign Affairs Minister Wlodzimierz Cimoszewicz admitting at the EU leaders' summit in Brussels last week that he "does not exclude the possibility of accepting a compromise based on a double majority voting system." However, he did add that a lot still depends on the details. The summit's agenda also included talks on the wording of the EU constitution's preamble and the solidarity provision on fighting terrorism, which obliges EU member states to give military aid to any EU country that suffers a terrorist attack. Domestic One of the nation's most distinguished essayists and translators, Zbigniew Kubiak, died last week aged 73. He translated writers such as Virgil, St. Augustine and Byron, but is best known as the author of the Mitologia Greków i Rzymian trilogy, which became an outstanding bestseller. Leading TV and newspaper journalists and editors borrowed a cage from Warsaw ZOO and placed it outside the Sejm before taking 30-minute shifts to sit in it. They started a three-day protest against a court sentence served on a local newspaper editor who allegedly slandered a local government official. The law based on which the sentence was handed down dates back to the darkest days of the communist period. Last week, Lew Rywin tried to explain in court why he was involved in the biggest corruption scandal of the decade, officially stating that he was Wanda Rapaczyńska's messenger. In order to become the president of Polsat, he had to fulfill a special mission, claiming he was sent by Rapaczyńska to Adam Michnik to let him know that the sale of Polsat may require an 'extraordinary cost.' Rapaczyńska and Michnik immediately refuted his claims. A zł.2 million bail was set for Grzegorz Wieczerzak, the former president of life insurer PZU Życie SA, who has been languishing in custody since July 2001. The former PZU Życie president, accused of having acted against the company's interests and thus causing the firm to incur losses of zł.173.5 million, has until May 15 to raise the bail. Bailiffs have confiscated property belonging to the curia of the archbishop of Gdańsk worth several hundred thousand zlotys. However, this figure is but a mere fraction of the total debts amassed by the church's publishing house, Stella Maris, which could amount to anywhere up to zł.40 million. If the debts, which were run up by its former manager, Father Zbigniew B., who currently stands accused of money laundering, are not settled soon, the bailiffs may have to auction off items from the curia's vast array of antique possessions, including a table on which it is alleged that the Peace Treaty of Oliwa was signed in 1660. Advertisement Real estate About us | Staff list | Feedback | Advertise | Privacy Policy | FAQ | Help | Contact © 1995 - 2003 New World Publishing Polska. All rights reserved. Republication or re-dissemination of the contents of this screen are expressly prohibited without the prior written consent of New World Publishing Polska Sp. z o.o.