Poland not to adopt euro before 2010

Poland not to adopt euro before 2010

Poland does not plan to adopt the euro before 2010, Polish Finance Minister Zyta Gilowska said in an interview published on Friday.

"Poland cannot enter the eurozone before 2010. As an economist, I have always felt that 2011 is an achievable deadline," she said in the interview with daily Rzeczpospolita.

"But as finance minister I have to be wary of putting forward adate because that would mean a commitment on the part of the Polish government. And as things stand today, we cannot make a commitment. However, we intend to fulfill all the convergence criteria by 2009," Gilowska added.

Poland is the only new EU member that has yet to set a date forjoining the euro.

Ukraine and Poland returned to considering Odesa - Brody oil pipeline construction

Ukraine and Poland returned to considering Odesa - Brody oil pipeline construction to Polish cities of Plock and Gdansk.

Ukrainian Prime Minister Yuriy Yekhanurov said this, following a meeting with President Lech Kaczynski of Poland.

"We've discussed several issues, and first of all the Odesa - Brody oil pipeline. We also vetted the state of trade-economic cooperation between the two states and discussed an agenda for the Polish President's visit to Kyiv", the Ukrainian Prime Minister said.

Rosti Opens another Plastics Manufacturing Plant in Poland

Rosti Opens another Plastics Manufacturing Plant in Poland

The Rosti Group’s Technical Plastics Division has opened a new manufacturing facility in Poland. The 8,000 m2 area is located in Bialystok, the largest industrial city in North East Poland, where Rosti established the first Polish manufacturing site “Rosti (Polska) Sp.z.o.o.” in 1999.

Rosti’s increasing business success within the Domestic Appliances segment, and the transfer of production for a large international customer from Western Europe made the expansion possible.

The new site “Poland 2” was inaugurated in the third quarter of 2005. In total, Rosti’s operations in Poland now employ 750 people and has more than 70 moulding machines, including a new 1300t providing flexible capacities to the operations.

Since the opening of “Poland 2”, Rosti (Polska) Sp.z.o.o. has been able to utilise the added assembly capacity to contract with new large international customers, ascertaining the Rosti Group’s presence as an attractive international partner.

Poland wants to sell 3.97% stake in TPSA

Poland wants to sell 3.97% stake in TPSA

Poland wants to reopen talks with France Telecom (FTE) on selling its remaining 3.97% state-owned stake in Telekomunikacja Polska SA (TPS.WA), Deputy Treasury Minister Piotr Rozwadowski said Thursday.

France Telecom now owns a 47.5% stake in TPSA, which dominates Poland's fixed-line market and controls the country's number-two wireless operator Centertel.

Poland's left-wing government engaged in protracted and ultimately fruitless negotiations with France Telecom in 2004-2005 about disposing of the stake.

"We'd like to reopen these talks soon," Rozwadowski told a joint session of parliament's infrastructure and treasury committees.

"But selling our stake would give France Telecom more than a 50% stake in the operator, which means we would expect them to pay a premium for control," Rozwadowski said.

At current market valuation, 3.97% of TPSA would be worth 1.25 billion zlotys ($392.8 million).

At 1455 GMT, TPSA shares were trading down PLN0.80, or 3.4%, at PLN22.40 on the Warsaw Stock Exchange.

Ceremonies in Bombardier Transportation Poland

Ceremonies in Bombardier Transportation Poland

n March 2005 Bombardier Trabsportation Poland celebrated manufacturing the 500th locomotive body (type TRAXX) and the beginning of a new generation locomotive production. The anniversary took place in the firm's factory in Wrocław. Locomotive bodies manufactured in Wrocław are sent to Bombardier Transportation assemble plant in Kassel, Germany. Bodies from Wrocław are also delivered to many private and national railways from Europe and USA.

In November 2005 Bombardier Transportation Poland Ltd., which continues traditions of a factory Pafawag from Wrocław, celebrated a jubilee of the 60th anniversary.

"Since 1945 almost 100% of electric locomotives and nearly 70% of all EMUs on the Polish railway market were delivered by the factory from Wrocław. We are the partner of Polish railways for 60 years now and with pride we continue the Pafawag tradition." said Mirosław Szeleziński, the Chairman of board in Bombardier Transportation Poland Ltd.

"The factory in Wrocław became one of Bombardier's most important plants. I am really proud of the fact that in the international family of Bombardier, Wrocław occupies such a strong position. The factory is involved in many priority BT projects (...)" claimed Wolfgang Toelsner, Chief Operating Officer in Bombardier Transportation.

Except the factory in Wrocław, Bombardier Polish branch has production plants in Katowice, Łódź and Warsaw. Generally, Bombardier Transportation Poland Ltd employs over 1000 workers.

Bombardier Transportation Poland Ltd belongs to a world-leader of rolling stock and railway equipment manufacturing and service Bombardier Inc.

Poland last in line to euro introduction

Poland last in line to euro introduction

While several new member states are planning to adopt the euro in the next few years, Poland could join the euro-zone as late as in 2012. Negotiations regarding the matter are to begin in 2009 at the earliest. Poland may be the last country to introduce the EU currency. Slovenia, Estonia and Lithuania, which are planning to replace their national currency with the euro in 2007, will be followed by Latvia in 2008. The Czech Republic is determined to join the euro-zone in early 2010.

Belarus: Poland leading non-CIS partner

Belarus: Poland leading non-CIS partner

Poland is Belarus' third-largest non-CIS trade partner, last year's turnover between both countries rising 18.5 percent to 1.4 billion USD, Andrei Papou from the Belarussian Foreign Ministry said Thursday in Minsk.

Summing up Polish-Belarussian economic ties, Papou pointed to a marked rise in trade over 2005, especially a 16.3-percent rise in Belarussian exports to Poland.

Papou also noted Belarus' positive trade balance with Poland to the tune of 268 million USD.

Poland's imports from Belarus mainly embrace petroleum products, LPG, potassium fertilizers, kazeine, wood, electricity and steel products.

Poland Jan CPI grows 0.2 pct mth-on-mth, 0.7 pct yr-on-yr

Poland Jan CPI grows 0.2 pct mth-on-mth, 0.7 pct yr-on-yr - Forbes.com

Poland's consumer price index grew 0.2 pct in January from December and 0.7 pct year-on-year, the Puls Biznesu news service reported, adding that some economists now expect the Monetary Policy Council to cut interest rates.

Economists had predicted annual growth of 0.9 pct, it said.

'This is a very good news, partly due to strong zloty, partly due to the fact that growing oil prices did not cause increases for goods and services,' Maciej Reluga, Bank Zachodni WBK's chief economist, commented.

According to preliminary data published by the central statistics office GUS, transport prices fell 1.7 pct, while fuel prices decreased 'substantially'. Food prices rose 0.4 pct month-on-month.

Employment rose 2.6 pct and remuneration by 3.6 pct year-on-year, which some economists believe may lead to growing consumption.

'I believe that the MPC will lower interest rates by 25 base points in February,' a BZ WBK economist said.

Jacek Wisniewski, Raiffeisen Bank chief economist, did not agree.

'It is too early for a cut,' he said. 'I believe the MPC will withhold with its decision until the February data is published. Then, we will see how strong the changes in the labour market were.'

He added that the chances of an interest rate cut in March were growing, however.

For Poland Mittal is white knight

For Poland Mittal is white knight

Three years after greeting the Mittal group, owned by Indian billionaire Lakshmi Mittal, with suspicion and fear when it bought up Poland's four biggest steelworks, polish trade unions have been won over by the company and hail it as their industry's white knight.

"Mittal is not what we feared, even if relations were difficult at first," said Wladyslaw Kielian, President of the Solidarity Trade Union at Mittal's steelworks in the southern polish city of Krakow. "We heard that Mittal was going to make people redundant and do everything to get rid of the biggest number of employees possible," Kielian said.

But rather than realise those fears, Mittal has pumped huge amounts of cash into the polish venture, said Kielian. "Before privatisation, the polish steelworks stood on the edge of a financial precipice. Without a strategic investor, they were headed straight for bankruptcy." in 2004, Mittal bought Poland's four biggest steelworks, which produce 70.0 per cent of the nation's steel, from the state.

Mittal recapitalised the polish steelworks, took on their debts, and promised to plough more than 600 million euros into them by 2009. ND after several months of negotiations with unions, Mittal promised not to make a single worker redundant against his will until 2009.

At the same time the company announced pay rises and a "privatisation bonus" of up to 3,000 zlotys (790 Euros) per person.

Poland expects North Sea gas in 3-4 years

Poland expects North Sea gas in 3-4 years

Poland expects the delivery of North Sea gas to begin in three to four years, the Deputy Economy Minister Piotr Naimski said Tuesday.

Naimski said the Polish Oil and Gas Exploration Co. had invited tenders for a feasibility study of the undertaking, Polish Radio 1 reported.

Other options are also being considered. Naimski said talks about oil supply were also ongoing, including discussions on the extension of the Odessa-Brody oil pipeline to Plock, Poland.

Poland is paying serious attention to energy supplies in Europe. Earlier this week, its prime minister, Kazimierz Marcinkiewicz., wrote in the Financial Times of a need for a treaty among NATO and European Union members on energy security.

"The shortages provided tangible evidence of institutional weakness in European energy security structures," he wrote.

Poland Names Jasinski Treasury Minister

Poland Names Jasinski Treasury Minister

Polish Prime Minister Kazimierz Marcinkiewicz on Wednesday named a new treasury minister who is expected to harden Warsaw's position in a battle with the European Union over a bank merger.

Wojciech Jasinski, 57, fills a post which has been vacant since his predecessor quit six weeks ago. He is a member of the governing Law and Justice party.

President Lech Kaczynski formally appointed Jasinski in a ceremony later Wednesday.

Jasinski is expected to toughen Poland's attempt to block plans by Italian bank Unicredito SpA to acquire the nation's third-largest bank, BPH, as part of its takeover of Germany's HVB Group, which owns BPH.

Poland filed an appeal this month against the European Commission's approval of the takeover, arguing that it would violate a 1999 privatization agreement the Italian bank signed when it bought a stake in Polish bank Pekao.

Jasinski is not expected to speed up or broaden privatization. He has said publicly that Poland should keep a tight control on strategic sectors such as oil, gas and electricity.

He has long been a close associate of Law and Justice leader Jaroslaw Kaczynski and his twin brother, the president.

The previous treasury minister, Andrzej Mikosz, stepped down Jan. 3 amid suspicions of wrongdoing.

He was the first minister to leave Marcinkiewicz's new government, which took office in late October promising to fight corruption.

Polish minister seeks to simplify tax code - Marketplace by Bloomberg - International Herald Tribune

Polish minister seeks to simplify tax code - Marketplace by Bloomberg - International Herald Tribune

Poland's three-month-old government plans to simplify the tax code and lower obligatory pension contributions to bolster economic growth, said the finance minister, Zyta Gilowska.

"Labor costs have to be lowered, and tax code changes should encourage companies that care about investments and employees," Gilowska said at a news conference here on Saturday.

The governing Law and Justice Party, which won elections in September on a pledge to lower taxes and cut the budget deficit, wants to push economic growth beyond the 4.3 percent projected for 2006. Prime Minister Kazimierz Marcinkiewicz reiterated last week that growth may be 5 percent.

The Law and Justice Party campaigned on promises to introduce a personal income tax of 18 percent and 32 percent, versus the current brackets of 19 percent, 30 percent and 40 percent. It aims to cut the corporate tax benlow the current 19 percent.

But at her news conference, Gilowska said such changes may not be possible in the coming years because of the budget shortfall.

Poland is obliged to trim its budget deficit to 3 percent of gross domestic product from 4.4 percent now to adopt the euro. The plan presented Saturday by the Finance Ministry might cost the budget 11 billion zlotys, or $3.5 billion, a year.

"It has been our great concern how we will cover it, but we will find a way to do it," Gilowska said.

Poland: Nawrot adds organic produce

Poland: Nawrot adds organic produce

or the third time Nawrot Company, a leading exporter of mushrooms, fruit and vegetables from Poland, has participated in international Fruit Logistica in Berlin, from the 2nd till the 4 th of February. The stand was well located in the corner of hall 6.2 near the passage to hall 5.2 and the restaurant. The exhibition of mushrooms and our new offer of organic produce met great interest of visitors, including both casual ones and professionals.


A great number of business conversation was held, regarding many serious possibilities for new cooperation as well as extending existing ones. They were run in nearly all major international languages: English, German, Russian, some Italian, Spanish and Greek were also exercised. The people interested in cooperation came from Germany, UK, Denmark, Holland, Sweden, France, Greece, Israel, Russia, Lithuania, Turkey, Italy and Spain .


Nawrot keeps developing all the time. Last two years were spent on adjusting and extending the company to all modern requirements of present European market. The area of some 2000 square meters was used to build a logistic base standing up to the requirements of quality systems ISO, HACCP, BRC and IFS (last phase of introduction). It includes network of cool rooms, packing rooms, warehouses, loading ramps, as well as the sales department and some social areas. The company developed its transport base of 10 modern refrigerated Volvo trucks, which covers both – domestic and abroad deliveries.


Nawrot’s top mushroom sales reached 180T a week and have good chances to further develop. The company keeps extending the range of vegetables and fruit, among them strawberries in punnets, blueberries, capsicums and very lately an offer of Polish organic fresh produce. It’s been certified in January for food industry and trade as one meeting the requirements of the Article 5 EU Regulation No.2092/91 (EWG). As Polish organic farming develops lately very intensely, the company may have chances to promote it successfully abroad.

Hungary's forint, bonds ease on renewed political jitters in Poland

Hungary's forint, bonds ease on renewed political jitters in Poland

Hungary's forint and government securities eased on Monday as the negative market impact of rekindled political woes in Poland spilt over to Hungarian markets. At 16:37 local time the HUF traded at 251.70/252.00, weaker than its Friday finish at 250.70/251.25.

Local reports have suggested that Polish President Lech Kaczynski is close to calling early elections, despite the fact that the ruling PiS party of his twin brother Jaroslaw signed recently a stabilisation pact with the small populist Samoobrona and LPR. Today we know it would not happen.

The 14-day period within which the head of state can dissolve parliament after it failed to meet the constitutional deadline for approving the 2006 Budget runs out on 14 February.
If the president decides to exercise this right, he will then have to at the same time call early elections for a date no later then 45 days from the announcement, with 26 March the last such possible date.
Government securities yield rose about 5 basis points in the morning and another 5-7 points in the afternoon.

The next domestic market-moving events will be Thursday's release of January inflation data and two bond auctions, HUF 35 bn worth of 10-year and HUF 45 bn worth of 5-year instruments.

Onion, red beets and apple prices grew drastically in Poland - Fruits & Vegetables from Ukraine (Agricultural Marketing Project)

Onion, red beets and apple prices grew drastically in Poland - Fruits & Vegetables from Ukraine (Agricultural Marketing Project)

According to the information provided by Rzeczpospolita newspaper, vegetables grew expensive past week. The price growth was especially extreme for such products as onion (+22%) and red beets (+25%). In the whole Polish consumers have to pay much more for vegetables this year compared to 2005. For example, even wholesale carrot and cabbage prices exceeded the past year level more than twice. The analysts explain such a rapid price increase by reduced production, simultaneously the volumes of processed vegetables grew due to the extended export possibilities at Polish processing enterprises.

We should also mention that the apple prices continue increasing; despite of the banned supplies on Russian market, this product is still much more expensive than a year ago. In average, the wholesalers have to pay 43% more for apples this year compared to 2005. During the past week apple prices increased 9%; the most rapid price growth was observed for Idared apple variety.

At the same time the analysts of "Agrooglyad: Vegetables and Fruits" journal inform that apple stock in Polish producers', cooperatives' and wholesalers' storages is still exceeding the past year volumes of stored apples.