By Marat Terterov, Jonathan Reuvid
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Additional resources for Doing Business with Poland
The gas monopoly, state lottery, power-grid company and mining giant KGHM Polska Miedz and Poland’s largest insurer Powszechny Zaklade Ubezpieczen (PZU) had all undergone changes of chairmen to appointees of the new government by mid February 2002. The government maintains that such house-cleaning is essential at state companies in advance of privatization and that world market conditions are not conducive to quick asset sales. In the case of PZU, state treasury minister Wieslaw Kaczmarek raised the temperature of a long-running dispute with Dutch-based finance group Eureko by rescinding the government’s agreement to sell it control of Poland’s largest insurer, instead leaving Eureko and Poland’s BBG with a 30 per cent interest apiece.
In addition to the commercial aspect, the Europe Agreement also contained provisions concerning the movement of workers, the supply of services and the establishment of companies, as well as the transfer of capital. With regard to the movement of workers, the Europe Agreement has provided for a very limited opening-up of markets—to 16 Doing Business with Poland self-employed people and key personnel. With regard to the supply of services and the establishment of companies, it has been decided that private individuals can establish companies in the European Union, which implicates their right to run their own business on the basis of the selfemployment rule.
New government Leszek Miller’s government, formed following parliamentary elections on 23 September 2001, took office with the key goals in mind of accelerating Polish accession to the European Union, stimulating the economy and bringing down unemployment. Miller’s government was formed by a coalition of the Left Democratic Alliance (SLD), the Union of Labour (UP) and the Polish Popular Front (PSL). This coalition achieved a crushing victory over the parties remaining in the previous, Solidarity-led government.