News July 2004

Lisbon, July 1: President Aleksander Kwasniewski said after meeting his Portuguese counterpart Jorge Fernando Branco de Sampaio that he promoted EU commissioner Danuta Huebner as deputy president of the European Commission. "We spoke about Ms Huebner and her assets. (...) I believe that skills and the person of Ms Huebner are convincing and that she is a serious candidate," Kwasniewski said. Poland has been striving for a nomination for Huebner ever since Portuguese PM Jose Manuel Durao Barroso was officially elected EC president. Barroso is expected to make related decision after July 22, that means after a vote of confidence in him taken by the European parliament. Sampaio declined to elaborate though admitted that Huebner's candidacy had been discussed. The presidents highly assessed bilateral relations. Kwasniewski underlined growing trade exchange and Portuguese investments in Poland. He also thanked Portugal for support offered to Poland before the country joined the NATO and EU. The two discussed the future of the EU and the outcome of a recent NATO summit. Earlier in the day the presidential couple laid wreath at the grave of Portuguese national hero and poet Luis Vaza de Camoes. President Kwasniewski, on an official visit to Portugal, will meet President of the National Assembly Joao Bosco Soares Mota Amaral and Lisbon Mayor Pedro Lopes. On Friday Kwasniewski PM Barroso.

Warsaw, July 1: PM Marek Belka congratulated Croatian Foreign Minister Miomir Zuzul on his country gaining the status of a candidate to the EU during the latter's short visit to Warsaw. The Polish PM also stressed that Poland supported Croatia's euro-atlantic drive and efforts to gain NATO membership. The two politicians also discussed bilateral relations. The PM declared willingness to share with Croatian partners Poland's experience from the period of preparation to become EU member. Referring to bilateral cooperation Belka pointed out to the need for working out and strengthening of a formula of contacts after Poland's integration with the EU. Minister Zuzul, on behalf of Croatian PM Ivo Sanader, invited Belka to pay an official visit to his country. The guest also gave a lecture to students of the Foreign ministry's academy of diplomacy about Croatia's plans to conclude negotiations with the EU in 2007.

Warsaw, July 1: The presence of Polish troops in Iraq is now at a clear request from the Iraqi authorities and it will depend on them how long we will stay there, Defence Minister Jerzy Szmajdzinski told the Sejm. The Chamber was debating on a government report on the presence and the status of Polish troops in Iraq. "We believe that the development of the situation in Iraq will enable to significantly reduce the number of Polish troops stationing in that country as of 2005," Szmajdzinski stressed. He said the reduction of Poland's military presence in Iraq should take place by the end of January 2005, providing that the building of Iraqi security forces will run on schedule. Szmajdzinski informed that this year's costs of the Polish presence in Iraq is to reach 308 million zlotys (80 million USD) or 2.5 per cent of the ministry's budget. He added that costs of stay, logistics and transport are covered by the U.S.

Berlin, July 1: Polish historian and chairman of the Cultural Community "Borussia" Robert Traba, and German FPD politician, former Mayor of Bremen Hans Koschnick are the laureates of the Polish-German Prize for 2003, awarded to them in recognition for their outstanding services to development of relations between the two countries. The prize was presented by Polish and German Foreign Ministers, Wlodzimierz Cimoszewicz and Joschka Fischer in Berlin. Fischer stressed during the ceremony that the two laureates contributed to the fact that Germany and Poland as good neighbours can together shape their future in the EU. Koschnick initiated and co-created the partnership of Gdansk and Bremen in early 1970s, and was also chairman of the Polish Institute in Darmstadt. Robert Traba co-founded Cultural Community "Borussia" in Olsztyn, Poland, in 1990, with the view to carrying out international and inter-regional social dialogue, opposing stereotypes and building Polish-German inter-human ties. During his visit to Berlin Cimoszewicz opened an exhibition on Polish tourist attractions: "The message is: we should come to know better each other, now that Poland and Germany are jointly responsible for the future of the whole Europe".

Warsaw, July 1: Agriculture Minister Wojciech Olejniczak told the Sejm food plants should agree on Russian veterinary inspections if they want to continue exports. On June 1 Russia halted meat imports from EU states demanding a single veterinary certificate from all producers. A few days later the country postponed the enactment of the decision until October 1 provided plants undergo Russian-led veterinary inspections. So far a list of 400 Polish plants that are willing to undergo inspection has been presented to the Russian side. The minister was addressing MPs' doubts related to the cost of stay of Russian inspectors that are to be covered by Polish plants. Russians will inspect plants in all EU countries and benefits from exports there are thousand times bigger than costs stemming from covering inspectors' stay. In 2003 agri-food produce dominated 23.8 percent of Polish exports to Russia against 21 percent in 2002. Meat exports rose by 187 percent from 2002 to reach the value of 85 million USD.

Warsaw, July 1: Tunisian Minister for Tourism and Crafts Abderrahim Zouari and a delegation paid a visit to the Polish Senate. Senate deputy Speaker Ryszard Jarzembowski stressed that cooperation between the two countries developed very well. "Poles know Tunisia because many of them spend holidays there," he said. Poland's EU membership opens new areas for mutual cooperation. Good political relations should favour development of economic ties, and there are considerable possibilities in this respect, Jarzembowski said. Minister Zouari expressed satisfaction that Polish-Tunisian contacts have intensified at all levels recently. About 50-60 thousand Polish tourists visit Tunisia annually, and the Tunisian authorities strive to attract at least twice as many Poles. Each year Tunisia is visited by 5 million persons, which is as many as Tunisian population. Annual revenues from tourism are estimated at 2 to 3 billion USD and the tourist industry gives jobs to about 350,000 people. In the first months of 2004 tourists' interest in Tunisia grew by 20 percent.

Warsaw, July 1: Halina Wasilewska-Trenkner of the Monetary Policy Council said that more weight should be attached to economic growth than to other indicators, including inflation. She said that Poland's economy will grow at least 5.5 pct in 2004. "Economic growth should be valued higher than other indicators, such as inflation," Wasilewska-Trenkner admitted. On Wednesday the Monetary Policy Council cut all interest rates by 50 bps. The 14-day intervention rate will now be 5.75 percent. National Bank of Poland governor Leszek Balcerowicz suggested more interest rate rises to lower inflation. May's inflation rose to 3.4 pct from 2.2 pct in April. "Even assuming the weakening of the growth in the months to come, we certainly have 5.5 pct (in the whole year), the finance ministry says it will be 5.7 pct and analysts close to 6 pct," she added.

Warsaw, July 1: Gross privatisation revenues were 1.935 bn zlotys on June 29, or at 21.91 pct of the 2004 plan, state treasury ministry informed. The government planned privatisation revenues to be 8.8 bn zlotys in 2004. Meeting the plan is one of the conditions for keeping the public debt to GDP ratio within its constitutional limit. According to a medium-range public finances strategy the debt is to be slightly over the second constitutional level of 55.1 pct of the GDP this year.

Brussels, July 1: Despite the lowest level of direct taxes among all EU countries, the overall tax burden in Poland in 2002 was at EU's average level, according to a report published by the E Commission. The overall burden (total amount of taxes and social security contributions) reached 39.1 per cent of the GDP in Poland compared to EU-25 average of 40.4 pct. While preparing the report, the EC did not take into account the cutting of CIT to 19 per cent in Poland, still EU experts assessed that the level of direct taxes in Poland in the reviewed period was low in comparison to other EU countries. However, the report stress Poland has one of the highest social contributions paid by employers and employees. The constituted 40.9 per cent of the overall tax burden compared to the EU-25 average of 32.1 per cent. The low level of direct taxes in Poland are also compensated by rather high level of indirect taxes (VAT, excise tax). Their share in the overall tax burden reached 40.4 per cent in 2002 compared to the EU-25 average of 34.8 per cent.

Warsaw, July 1: Poland's national carrier LOT and Air Canada have started to share flight connections between Poland and Canada. LOT will now be able to offer to its customers connection with more than 10 Canadian cities, including Edmonton, Halifax, Winnipeg or Calgary. Air Canada is the next airline of the Star Alliance with which LOT signed an agreement on sharing flight connections.

Kwasniewski, Barroso highly evaluate bilateral relations

Lisbon, July 2: President Aleksander Kwasniewski assured Portuguese PM Jose Manuel Durao Barroso, the recently elected European Commission president, that he may count on Poland's support. Contrary to expectations, the two did not discuss Danuta Huebner's chances for the post of EC deputy president, which has been promoted by the Polish government. Kwasniewski and Barroso made short speeches in which they highly evaluated bilateral relations as well as political and military cooperation. Barroso assured participants in the meeting that as a new EC head he would work for improving Poland's relations with remaining EU countries. He stressed that Europe needed Poland. The meeting was the last item on the agenda of Kwasniewski's visit to Portugal.

Weapon of mass destruction in Iraq found by Polish troops

Warsaw, July 2: Warheads containing sarin and mustard gas, found by Poles in Iraq have been sought for by local terrorists, who offered for them 5,000 USD a peace, head of the Military Information Service General Marek Dukaczewski said. Polish intelligence having got the information where the chemical weapons can be purchased bought all available (17) missiles. He did not want to disclose the site where the weapons had been stored saying only it was in the Polish-run central southern zone of Iraq. "I can say with satisfaction that many months after the Polish military contingent had been entrusted with the task of seeking weapons of mass destruction we have scored a success. Our predictions and reports that Saddam Hussein has failed to account for weapons of mass destruction proved to be true," Defence Minister Jerzy Szmajdzinski said. Asked why the information was presented by the U.S. authorities he said: We did not want to speak about this finding until the Americans could surely say that this was a deadly nerve agent. on. Dukaczewski added that some of the seized missiles were corroded and unsuitable for shooting but suitable for a terrorist attack. A group of international experts including Poles has been working on establishing the weapon production date and its efficiency. Szamjdzinski didn't want to disclose the date of a final report. Chances were that the missiles were produced in the 1980-ties but the warheads were filled with gas later. Szmajdzinski and Dukaczewski said they had no signals of terrorists taking hold of WMD but such a possibility cannot be ruled out. Szmajdzinski added he counted on increased security alert among Iraqi people including those who believed in Hussein. Poles detected the missile storage but the purchase was made from international funds. Money came from funds at the disposal of the Polish contingent.

Weapons found by Poles might be evidence in Hussein's trial

Warsaw, July 2: The warheads found by Polish troops might be used as evidence during a trial of Saddam Hussein, general Mieczyslaw Bieniek, the commander of the multi-national force in Iraq, said. He did not rule out that there might be more such warheads.

Military intelligence denies AP, DPA reports

Warsaw, Camp Babylon, July 4: Spokeswoman for the Military Intelligence Services (WSI) has stated that to WSI knowledge no U.S. commanding staff has ever said that warheads found by Poles "would be of little impact if used by insurgents," as it had been reported by AP and DPA. The initial examination of two 122 mm rockets by three different labs have shown that the warheads tested positive for sarin, a lethal nerve agent. It is also true that rockets' rounds were in poor condition and unsuitable being used in combat but they contained different amount of noxious gases. The remaining rockets have been shipped to the U.S. forces for further examination. Spokesman of the central-south multinational division in Iraq said the Polish command maintained its previous opinion that the rockets were dangerous.

Colin Powell expresses gratitude to Polish diplomats

Warsaw, July 2: U.S. Secretary of State Colin Powell in a letter to Foreign Minister Wlodzimierz Cimoszewicz thanked Polish diplomats for the 13 years during which they represented U.S. interests in Iraq. The letter was read by U.S. Ambassador to Poland Christopher Hill who is concluding his diplomatic mission. The U.S.-led coalition transferred sovereignty to an interim Iraqi government on June 28. On the same day the U.S restored diplomatic relations with Iraq. Diplomatic relations between Washington and Baghdad were broken off during the 1991 Gulf crisis. The Section of U.S. interests in the Polish Embassy in Iraq was officially closed. Speaking on behalf of the American people and my own I would like to express my gratitude for Poland's extraordinary assistance in protecting U.S. interests in Iraq for the last 13 years. Working in the section of U.S. interests in Baghdad Polish diplomats were providing in difficult conditions very significant services for U.S citizens in Iraq (...), Powell wrote. He stressed the U.S highly held the contribution of Polish diplomats to creating a free and democratic Iraq (...) Their dedication and sacrifice helped change hope into facts, he said. Deputy Foreign Minister Adam Rotfeld expressed satisfaction that the U.S had chosen Poland to represent its interests in Iraq. He added that the work of the section could be described as a success of the Polish diplomacy.

Valionis: Lithuania to consider support for Huebner

Warsaw, July 2: Lithuania will consider support for Danuta Huebner as deputy president of the European Commission, Lithuania Foreign Minister Antanas Valionis said after a meeting with his Polish counterpart Wlodzimierz Cimoszewicz. He added that so far the Polish side had not applied for such a support. Polish PM Marek Belka and President Aleksander Kwasniewski have strongly promoted Huebner's candidacy for the post ever since such an opportunity surfaced. Both ministers also discussed EU contacts with its eastern neighbours. Cimoszewicz announced that the issue will be consulted by both countries foreign ministries on a regular basis. Poland and Lithuania also plan to participate in EU-Russia energy dialogue on power generating and transmitting. Cimoszewicz underlined a growth of Polish-Lithuanian trade exchange with turnover exceeding one billion USD, up 40 percent. The ministers declared that both countries will undertake joint actions aimed at acquiring EU funds. Lithuania would like to use the Polish power grid to join the EU electricity system. Cimoszewicz admitted that there were still unsolved problems in Polish-Lithuania relations related to both countries' minorities.

Jewish Culture Festival as part of Polish Season in France

Paris, July 5: The Jewish Culture Festival organized in cooperation with authors of a renowned festival in Cracow ended in Paris. The event was meant as another presentation of Polish culture within the ongoing "Nova Polska" Polish Season in France. The "Nova Polska" started on May 1 when Poland entered the EU. Its program, to be held in several dozen French cities until January 2005, consists of concerts, exhibitions, theatre performances, film reviews and seminars. The project has been organised by the Ministries of Culture and Foreign Affairs of Poland and France, Poland's Adam Mickiewicz Institute and its French partner Association Francaise d'Action Artistique, in cooperation with the Polish Institute in Paris and the French Institute in Warsaw. The program of the Season provides for around 800 events in 180 French towns and cities. So far 160 cultural events have been held.

Polish documentary wins silver medal of Monte Carlo TV Festival

Monte Carlo, July 4: A Polish documentary "Zycie Michala" (Michael's Life) won the silver medal of the 44th Monte Carlo Television Festival. The by film Beata Januchta portrays an alcoholic who tries to re-build his life and find a son he hasn't seen for 20 years. The Festival was created in 1961 by Prince Rainier III of Monaco who wished "to encourage a new art form, in the service of peace and understanding between men".

Poll: Poles pessimistic about country's situation

Warsaw, July 2: Improvement in Poles' moods reported in May turned out to be a short-lived one. In June assessment of the general country development got worse marks while the evaluation of selected aspects of political and economic live did not substantially altered, indicates a recent CBOS poll. The country's political situation was positively assessed by 27 percent compared to 32 pct in May. The number of people expressing negative opinions rose from 51 pct to 62 pct. 68 pct of Poles believe the political situation is bad, 22 pct assessed it as good. 31 pct assessed the country's economic situation as average. 54 pct expressed critical opinions and 11 pct expressed satisfaction. In May positive opinions were expressed by 56 pct and negative by 9 pct.

Warsaw, July 6: President of Lebanon Emil Lahud met with Senate Speaker Longin Pastusiak to discuss cooperation of Poland and Lebanon with their countrymen living abroad. Pastusiak said that Lebanon has a charter of an emigrant granted to those persons who are citizens of other countries but are of Lebanese origin. A similar charter is planned to be introduced in Poland. The Senate is under pressure of Polish organizations in other countries, especially in the former Soviet republics, to pass a charter which would make contacts of Poles living abroad with Poland much easier. The meeting with Pastusiak was the last item on the agenda of President Lahud's official visit to Poland.

Warsaw, July 6: Poland may meet the criterion to reduce its budget deficit to below 3 pct of GDP provided that the public finances reform plan is implemented, Deputy PM Jerzy Hausner said. The EU urged Poland to start implementing Hausner plan-related measures to bring the deficit of public finances to below 3 percent of GDP in 2007. Under the budget deficit reduction timetable presented by the Polish government, the council of 25 finance ministers approved 2004-2007 deficits at: 5.7 pct in 2004, 4.2 pct in 2005, 3.3 pct in 2006 and 1.5 pct in 2007. The implementation of the recommendations will allow Poland to join the euro zone in 2009. "It is realistic but requires the implementation of the public finances reform plan. We cannot do without it", Hausner said when asked whether it is realistic to reduce the gap to the recommended levels. In 2003, the government approved the austerity plan whose full implementation was designed to reduce Poland's borrowing needs by over 50 bn zlotys. But there are market concerns that ahead of the forthcoming elections politicians will be tempted to dilute the plan, especially its social package. PM Marek Belka said in his expose that the government will have to abandon part of the plan and soften it.

Warsaw, July 6: Polish monetary authorities should closely monitor inflationary processes and when necessary, react to CPI growth with interest rate hikes, OECD experts said in a report on Poland. Given Poland's relaxed fiscal policy and a high economic growth, country's monetary policy should bot be further relaxed, OECD analysts said. In the short-term it will be critical to re-establish an appropriate balance between fiscal and monetary policy. "Currently, fiscal policy is too relaxed, requiring higher than desirable real interest rates, with adverse consequences for investment, activity and potential output", OECD said. OECD urges immediate budget spending cuts. OECD experts that the Hausner-authored austerity plans is the step in the right direction. Because most of the savings will not come on line until 2005, there is a real risk that the planned reform will not prevent the 60 percent debt level barrier from being broken", the OECD economists said. OECD forecasts Poland's 2004 GDP growth at at least 4.5 percent but also claims that the economy may be overheated.

Warsaw, July 6: The Polish Agency of Information and Foreign Investment (PAIIZ) is working on over 80 investment projects that might help pour into Poland USD 3 billion and create 30,000 new jobs, PAIIZ informed. But whether these projects are implemented depends on investors' decisions. In 2004, Sanden, Whirlpool, Gillette and Daicel have announced the launch of projects in Poland, valued at over USD 310 mn and creating 2,500 jobs. "We have over 20 major projects, including in the automotive industry, and service centres. They are at various phases of negotiations. I think that first final decisions will be taken in September and October", PAIIZ head Andrzej Zdebski said. 2003's FDI in Poland rose to USD 6.42 bn from USD 6.06 bn in 2002. FDI in Poland in the June 1989-December 2003 period totalled USD 72 bn.

Warsaw, July 6: Deputy PM and Economy Minister Jerzy Hausner does not see a direct link between Poland's power safety and problems of Russian oil giant Yukos. Hausner has taken over supervision on the power-generating sector from the infrastructure ministry. "I will soon meet with Russian officials responsible for power sector. I think that together with my colleagues we will be able to work out a stand that would well protect our interests and would be acceptable for the Russian side. Because in this field we need cooperation with Russia," Hausner said. On Monday banks-creditors asked Yukos to pay back 1 billion USD worth of a loan after the Russian authorities had ordered it to pay 6.8 billion USD of overdue taxes. Yukos representatives warned they may stop extracting crude oil. Yukos financial director Bruce Misamore said the group of creditor banks had not demanded immediate repayment of the loan.

Moscow, July 6: National Remembrance INstitute (IPN) head Professor Leon Kieres called on the Russian main military prosecutors to conclude as soon as possible the 13-years long investigation into the Katyn mass murder. "I would like to appeal to my Russian colleagues to conclude and close once and forever the case that poisons Polish-Russian relations," Kieres said in an interview for the Moskovskiye Novosti weekly. The IPN head clearly blamed the Russian judiciary for sluggish work aimed to uncover the circumstances of the death over 20,000 Poles murdered on Stalin's order. The investigation into the Katyn murder has been carried out by the Main Military Prosecutors' Office of Russia since early 1990s. Poland resigned from its own investigation and after 13 years we still do not know at what stage the investigation is, Kieres said. He will consider the investigation closed when all 22,000 individual cases of the victims of the crime will be wrapped up. In his opinion there is no proof that the evidence concerning the murder was destroyed. Over 20,000 Polish officers, policemen, doctors, professors and clergy taken POWs after the Soviet aggression on Poland in September 1939 were executed by Stalin's order on March 5, 1940.

Warsaw, July 6: Five students from Stanislaw Staszic secondary school in Warsaw won this year International Young Physicist Tournament (IYPT, a competition for teams of high school students that encourages scientific research and improved international communication in physics) in Brisbane, Australia. A total of 26 teams from all over the world took part in the tournament. Prior to the event, each team had to carry out 17 experiments in their countries and the results of five of those had to be presented to the jury. The team from Warsaw won analysing characteristic sounds made by didgeridoo, the instrument of aborigene population. IYPT is based on problems requiring extensive research, presentation in English and highly developed debating and communicating skills. It commenced in 1979 and was developed at the Physics Faculty of Moscow State University for students from Moscow and its vicinity. The competition became international in 1988.

Warsaw, July 6: President Aleksander Kwasniewski still tops popularity ratings with 58 percent of Poles having a good opinion about his work and 32 pct expressing the opposite opinion, indicates a recent CBOS poll. The Sejm was positively assessed only by 9 pct of the polled and negatively by 81 pct. 16 pct voiced good opinions about the Senate and 63 pct criticized the upper chamber of parliament. Local government was positively assessed by 51 pct of Poles and negatively by 36 pc. 54 pct of Poles were satisfied with the police and 34 pct were dissatisfied. 17 pct were satisfied with the work of courts and 61 pct voiced the opposite opinion. The evaluation of prosectutor offices remained unchanged at 20 pct in favour but the number of negative assessments went up to 53 pct. The National Bank of Poland gained 44 pct of good opinions and 22 pct of negative ones.

Warsaw, July 6: 55 percent of Poles are satisfied with Poland's integration with the EU, 27 pct are dissatisfied chiefly owing to fears related to the expected price hikes, a Ipsos poll has shown. Prices of food, flats and new cars have gone up after integration. As regards other products, their prices remained flat or fell. The most favourable changes were reported in the telecommunications sector.

Warsaw, July 15: German President Horst Koehler started his first foreign visit after he assumed his duties on July 1. The Polish and German presidents started a face-to-face meeting to discuss. Polish-German cooperation in the EU, with particular emphasis of preparations for the ratification of the EU Constitution draft, and controversy surrounding the center against expulsions. Poland and Germany are together in NATO and the EU - and we want to follow this road but we will not forget the past. But this past should not divide Poles and Germans, President Aleksander Kwasniewski said after a meeting. He thanked Koehler that he has paid his first foreign visit to Poland. We are considering this a very significant and friendly gesture testifying both to good Polish-German relations and the conviction that in future we can build much together, that we can create a partnership and true Polish-German reconciliation, Kwasniewski said. Koehler said he fully supported the declaration made by Kwasniewski and former German President Rau in autumn 2003 in which both politicians called for European dialogue concerning expulsions and resettlements of civilians in the 20th century. Koehler stressed that neither the German government nor the opposition and any political force in Germany would take up the subject of property compensations. We have an agreement in Germany that we are not changing the history and this is also a foundation of good relations with Poland, he said. Both presidents pledged to support any initiatives serving direct contacts between Poles and Germans. They also broached the Iraqi question and stressed the need on the part of the entire international community to spare no efforts in stabilising the situation in Iraq and help develop its economic growth. In the afternoon the German president left for Gdansk to lay a wreath at the Westerplatte monument and meet with former president Lech Walesa. On Friday President Koehler left for France.

The Hague, July 15: Foreign Minister Wlodzimierz Cimoszewicz discussed priorities of the Dutch presidency of the EU Council and EU financial prospects for the years 2007-2013 during his visit to the Hague. The minister met with his Dutch counterpart Bernard Bot. Holland proposed to destine most of the EU reduced budget for the needs of the new member state, Cimoszewicz said. "Holland as one of those countries which are firmly in favour of smaller EU budget, declares unequivocally that funds from this reduced budget, especially structural funds should be concentrated on new member states because their needs should be satisfied with the European support, Cimoszewicz admitted and added that after careful calculation Poland might support this proposal. Holland, Germany, France, Great Britain, Austria and Sweden want to limit expenditures for the EU to under one percent of GDP. The EC will present new proposals concerning the Union financing in the years 2007 to 2013 in the weeks to come. Both ministers also discussed EU-Russia relations as Poland wants to actively participate in shaping the eastern dimension of the EU policy and take part in the EU-Russia dialogue concerning energy. I think the Dutch presidency may be deeply interested in Polish experience in this respect, Cimoszewicz added. The ministers discussed accession of Bulgaria and Romania to the EU and commencement of accession negotiations with Turkey. Cimoszewicz also met with Minister for Development Cooperation Agnes van Ardenne and former PM Wim Kok. The latter now chairs the EU High-level Group on the Lisbon Strategy whose aim is to reduce economic disproportions between the EU market and that of the USA.

Warsaw, July 15: The Sejm Foreign Affairs Committee started the debate on the draft resolution calling on the government not to sign the EU Constitutional Treaty and decided to postpone the debate till September 9. The resolution was drafted by the Catholic National Movement (RKN.) The Committee now needs to receive experts' opinions on the constitutionality of the Treaty. RKN leader Antoni Macierewicz claimed at the Committee's sitting that the Treaty violates the constitution and poses threat to the sovereignty of the Polish state. Deputy Foreign Minister Jan Truszczynski stated that the government was sure that the Treaty conforms to the Polish Constitution, and law experts confirmed this opinion.

Warsaw, July 15: Inflation in July and August will be at 4.2 percent and in September it will fall to 4.0 percent, according to estimates of the Finance Ministry.

Warsaw, July 15: Candidate for the finance minister Miroslaw Gronicki said Poland had no chance for development without the implementation of economic austerity plan. PM Marek Belka announced that Finance Minister Andrzej Raczko will step down on July 21 to be replaced by Gronicki, at present Millennium bank chief economist whop said that "Poland has no chance for development without tightening its fiscal policy. However, the size of cuts is a political choice,". Gronicki holds a degree in economy from the Gdansk University. Between 1987 and 1993 he worked for foreign scientific institutes.

Olsztyn, July 15: Michelin concern, owner of 99 percent of shares in Stomil Olsztyn tyre plant, is in talks with Olsztyn city authorities on plans to increase the plant's production capacity and create 1,200 new jobs. The project's value is estimated at 600 million euros. Olsztyn city council have unanimously passed a resolution creating favourable legal solutions facilitating the implementation of the investment project. Negotiations have been going on for the past two months. The French concern will either invest in Olsztyn or in Hungary. City council head said that if Michelin decides to invest in Olsztyn, tyres from this plant would be exported to Lithuania and Ukraine. Currently Stomil Olsztyn employs 3,300 people.

Bialystok, July 15: The start of the modernization of the first stretch of the future Via Baltica highway will start next year regardless of protests by ecological organizations, Tadeusz Topczewski, director of the local branch of the GDKiA national road management company said. He argued that the present state of the future Polish stretch of the Via Baltica is in so bad condition that road works must be started next year. The Via Baltica, a road corridor to link Warsaw with Helsinki through the Baltic republics sparked numerous protests on the part of ecological organizations concerned about the possible impact of developing the highway on a number of sites of importance for the conservation of birds, other animals, plants and habitats, including the Biebrza and Narew Marshes and the Augustow and Knyszyn Forests.

Warsaw, July 15: 60 percent of Poles believe that Polish politicians are less honest than the rest of the nation, 46 pct think they are worse in this respect than other EU politicians. For 80 pct politics is not a profession for honest people, according to a recent TNS OBOP poll. Only 1 pct of the polled believe that Polish politicians are more honest than other Poles. 10 pct believe that politics is for honest people. In the opinion of 69 pct, people who want to become politicians are guided mainly by their own interest and their friends'. 3 pct believe they are interested in Poland's interest.

Camp Babylon, July 18: PM Marek Belka has said that the fourth shift of the Polish military contingent in Iraq should be smaller and after 2005, when a U.N. mandate for international forces expires, the nature of the contingent will have to be changed. Prime Minister expressed hope that after 2005 there may not be a need for international forces in Iraq and said that he counted on strengthening of the Iraq's own security forces. the PM and Defence Minister Jerzy Szmajdzinski attended a ceremony at Camp Babilon in Iraq of taking over the command on the multinational division by General Andrzej Ekiert. Belka said that Polish forces' participation in the Iraqi mission had substantially changed Poland's position in the world and that Polish military units with their Iraqi experience may measured up to the standards of the best European armies. Belka said he was glad that the coalition forces had the mandate of the U.N. Security Council. "This dispels any doubts as to the nature of our mission. Though for us it has always been clear that we are here to stabilise, diminish losses and ease suffering," he explained. Belka is the first PM of the coalition state that paid a visit to Iraq after the country taken over power from the U.S. on June 28. During the visit, he met with the PM Iyad Alavi.

Warsaw, July 19: Prime Minister Marek Belka and Defence Minister Jerzy Szmajdzinski paid a visit to Afghanistan on Monday. the Polish PM met with Afghan President Hamid Karzai. Belka was quoted by AP as saying that Poland could send troops to Afghanistan as part of a planned pullback from Iraq. At present there is a 120-strong Polish contingent in Afghanistan. It is a part of the Enduring Freedom operation and operations conducted by the International Security Assistance Force (ISAF). NATO has now around 6,500 soldiers in Afghanistan from 33 countries. It plans to expand its force by some 2,200 before first-ever direct presidential elections, planned for October 9.

Warsaw, July 16: PM Marek Belka believes that cooperation between the government and members of the European Parliament (MEPs) should go smoothly irrespective of political affiliation. He added he would like contacts between the government and MEPs to become a traditional form of consultations. The best solution would be if Polish MEPs would keep the government posted as to the course of law making procedures by the European Parliament. Belka also expressed hope that Polish MEPs would promote knowledge about the EU in Poland that will in future attract more voters to polls in European elections.

Warsaw, July 16: The Polish government is against tax rates harmonisation with those binding in other EU countries, said Finance Minister Andrzej Raczko while presenting a government report on tax law harmonisation. However Polish businessmen would benefit if the government harmonise tax regulations. Raczko explained that businessmen willing to start a company in other EU countries would spend a lot on tax consulting if law regulations differ.

Warsaw, July 18: Polish politicians are concerned over a proposal to include in the European legislation an entry that would make structural assistance dependant on CIT adjustment to the European average, as it had been suggested by EU commissioner for enlargement Guenter Verheugen. The Rzeczpospolita daily wrote that Verheugen initiative was rejected because of the firm position of Polish EU Commissioner Danuta Huebner. Huebner appeases moods claiming it had been only a start of a discussion and the proposal itself should not be linked with any name.

Washington, July 16: The House of Representatives of the U.S. Congress has approved a foreign aid bill enlarging, among others, aid for Poland in 2005 by some 46 million USD. According to the AP, the annual sum will grow to 66 million USD. The bill must now be approved by the Senate and President Bush must sign it before it becomes law.

Brussels, July 16: Poland will have to reply to the EC by September why it had failed to impose a 22 percent VAT on access to the Internet, deputy Finance Minister Igor Chalupiec said commenting on a recent EC letter to this effect. The EC monitors EU law observation in all countries and Poland had not negotiated the right to a lower rate on the Internet.

London, July 18: Development pace of the Polish economy is the fastest since 1997 and the annual average GDP dynamics may reach even 6 percent, wrote The Economist. The weekly underlines that Poland has structural problems related to labour market and public finances. As to the labour market, the weekly shares the OECD opinion that gave Poland the worst mark among its 30 member-states. The Economist also shares another OECD opinion that a program retraining farmers could bring another 30 percent to the Polish GDP.

Cracow, July 16: A part of bike route leading from Malopolska, southern Poland via Moravia in the Czech Republic to the Austrian capital of Vienna has been inaugurated in Regulice near the small town of Alwernia. The 700-kilometer-route leads through a very interesting territory from the point of view of geology and nature called Ecomuseum, according to an idea that has come from France. Plans are for the route to become the longest one in Europe with a well-developed infrastructure of hotels and restaurants.

Warsaw, July 22: The Sejm passed a government report on the harmonisation of tax laws in the EU. The report assured that the government was against tax rates harmonisation with those binding in other EU countries but stressed that Polish businessmen would benefit if the government harmonised tax regulations. While presenting the report, former finance minister Andrzej Raczko said that if tax regulations differed in EU countries, businessmen starting a company abroad would have to spend a lot on tax advisory services.

Warsaw, July 22: "Excessive restrictiveness of the fiscal policy may slow down economic growth. We have certain limitations. On the one hand the monetary policy will strive to limit inflation, on the other, we will aim to limit the deficit, this mixture may lead to the slowing down of economic growth", new finance minister Miroslaw Gronicki said. However, he did not reveal whether the ministry plans to verify the hitherto growth forecasts. The FinMin's latest estimates say that the economy should grow by 5.5-5.7 per cent of the GDP to slow down to 5 pct next year. The market forecasts that the Polish economy will end this year with the result of 5.8 per cent of the GDP."The growth may be lower than expected by economists until this moment", Gronicki admitted.

Warsaw, July 22: Miroslaw Gronicki, The new finance minister declared will to cut next year's budget deficit despite expected limitations. According to him one of the most urgent economic tasks is the limitation of public spending in a scope written down in the Hausner program, however the minister is open for new ideas contributing to the implementation of finance reform. Gronicki said that it would be possible to cut the 2005 budget deficit below 38.8 billion zlotys. "I want to have next year's budget deficit at lowest possible level. Those 38.8 billion zlotys is the upper level set by a strategy. But I will strive to lower it", he said. Deputy PM Hausner said there is a chance to lower the deficit, while the new finance minister should review it. However, further cutting of next year's budget deficit will be difficult due to a more rapid than predicted inflation growth. This may limit consumption demand and in result lower state revenues. "We might have a situation in which I will be able to limit 2005 budget deficit, although the situation around the budget revenues is tight. We have a considerable inflation surprise, mostly about food prices. This consumes households' real incomes. This will lower consumption demand in the second half of the year", Gronicki added. The minister said that among his priorities is the continuation of the Hausner program, although he did not exclude new ideas aimed at straightening out state expenditures.

Warsaw, July 23: The state budget deficit after June 2004 amounted to 19 bn 876.1 million zlotys, or 43.9 percent of the plan envisaged in the 2004 budget law, the Central Statistical Office (GUS) reported on Friday. Budget incomes still exceeded budget outlays, GUS added.

Brussels, July 22: Poland's trade turnover deficit with EU states was at 4.4 billion euros in May and placed the country fourth at the list of EU states with the highest trade deficit. According to Eurostat, in the first four months of 2004 Polish exports to euro, common currency countries totalled 10.3 billion euros, up 21 percent compared to last year. Imports was estimated at 12.5 billion euros, up 16 pct. Overall the Polish exports grew by 23 pct (from 14.8 to 18.2 billion euros) and imports by 19 pct (from 19.0 to 22.6 billion euros). Trade deficit grew by 0.2 points.

Strasbourg, July 22: Janusz Lewandowski of the Citizens' Platform (PO) was elected Thursday chairman of the Committee on Budgets of the European Parliament. Lewandowski, presented by the European Peoples' Party was the only candidate for the post.

Warsaw, July 23: June's jobless rate fell to 19.5 pc from May's 19.6 percent, Central Statistical Office said. There were 3,071,200 people out of work in June, down 2.0 pc y/y.

Warsaw, July 23: The U.S. Senate has passed unanimously a resolution commemorating the 60th anniversary of the Warsaw Uprising. The resolution will be soon voted by the House of Representatives. The resolution described the uprising as one of the most heroic battles during WW2 and stressed that the spirit of the Polish resistance are an inspiration to all peoples in their pursuit of liberty and democracy and are evident today in Polish contributions to the global war against terrorism. The Senate recognized the 60th anniversary of the Uprising which will forever serve as a symbol of heroism in the face of great adversity and the pursuit of freedom.

Warsaw, July 22: The Simon Wiesenthal centre has launched inquiries against ten Poles suspected of participation in killings of Jews during WW2. The investigations are based on information won by means of an infoline opened by the Centre in Warsaw in June. Callers with information about Jew-persecuting Poles are offered a 10,000-euro award, an idea which evoked controversies in Poland. Ephraim Zuroff from the Centre's Jerusalem office said around 50 Poles have called the infoline to date. Similar lines in Lithuania and Latvia attracted more callers.

Gierloz, July 22: Descendants of the conspirators to assassinate Adolf Hitler on July 22, 1944, toured the former Hitler's bunkers, The Wolfschanze Lair, near Ketrzyn, north-east Poland, on the 60th anniversary of the failed attempt at the fuehrer's life. Among the guests from Germany were son of Col. Claus von Stauffenberg, Berthold, and Peter von Kaehne, Stauffenberg's nephew, as well as members of the July 22 Association affiliating relatives of the plotters and persons wishing to commemorate anti-Hitler resistance. A commemorative plaque was unveiled at the bunker with an inscription reading "In memory of resistance against national socialism".

Warsaw, July 22: In the first half of 2004 more than 17 million visitors from the EU countries arrived in Poland pushing the number up by close to 30 percent from the comparable period of last year. Between January and May 2004 Poland was visited by more than 12 million tourists from former 15 EU countries and more than 5.4 million from EU new members.

Warsaw, July 22: The International Federation of Phonographic Industry IFPI has decided to cross Poland out of a list of ten countries pointed as target states in piracy fighting. In a report published in London, IFPI positively valued changes recently introduced in Poland including amendments to the copyright law and related laws that include a separate entry regulating the control of optical carriers which took effect on May 1, 2004. The regulation, first of the type in EU countries will be presented as a model one to old and new EU member-states.

Warsaw, July 23: The Sejm moved for Poland's ratification of several EU treaties on extradition under which Polish criminal offenders seized in another EU state would be able to choose between a regular or fast extradition to Poland. Under the fast procedure wanted persons are extradited to their native country without prior application to the extraditing country. It can be applied only upon consent by the extraditing country and extraditee. Another treaty obliges all EU states to extradite persons sought for involvement in organized crime. Tird convention foresees cooperation between EU judiciaries in counteracting corruption among EU officials.

Warsaw, July 23: The EC has assigned 13 billion euros from structural funds to be used by Poland between 2004-2006, EU commissioner for regional policy Jacques Barrot said in Warsaw. He hoped the country would actively use these means to fill the gap in the development of regions of the "old" and "new" EU states. Barrot believes that to achieve the goal Poland should strengthen administration so that it could effectively manage EU programs. However, using the funds from the EU, the country should observe EU principles and regulations on public orders as well as take good care of natural environment. The commissioner, on his first visit to Poland said he had arrived with a 240 million euros of downpayment. Head of the Office of the Committee for European Integration Jaroslaw Pietras explained that the money will go for launching first projects. He assured that the number of local government ready to successfully pass all EU procedures had grown. Poland has more good projects ready for implementation than funds for implementing them, Pietras said.

Warsaw, July 23: Some 120 delegates from 40 countries will attend a world congress of Pax Romana that started in Warsaw on July 24, President of the Catholic Intelligentsia Club (KIK) Piotr Cywinski said. The congress, to be held in Poland for the first time will focus on poverty and injustice as challenges for ethics and cultures. KIK has been PAX Romana member since 1971. Pax Romana President Patrico Rode stressed the topic of the conference has to help understand structural causes of poverty and injustice and find a new approach to solving the problem since the technological revolution drastically increased a hiatus between the rich and the poor. Deputy President for Europe Josef Maria Carbonell underlined that poverty and injustice may also be viewed as cultural or inter-cultural phenomena. In this context ethics and culture should be the basic criteria applied to evaluate these problems. Cywinski believes that participants in the congress will try to find out what do the Gospel and Catholic teaching offer to solve problems of contemporary world such as globalisation, poverty, injustice consumerism, migration and terrorism.

Strasbourg, July 23: Marcin Libicki (Law and Justice) was appointed head of the European Parliament committee on petitions, and Janusz Wojciechowski (Polish Peasant Party) a deputy head of the EP committee on agriculture and rural development. Libicki said the committee on petitions was the only such a body in the EP to which everybody can turn with every issue. His candidacy was forwarded by the Union for Europe of Nations (UEN) and Wojciechowski was submitted by EP's biggest grouping, that is the European People's Party-European Democrats (EPP-ED). With these nominations Poles have so far assumed nine posts in the EP including two posts of vice-president of the assembly (Jacek Saryusz-Wolski of the Citizens' Platform and Janusz Onyszkiewicz (of the Freedom Union) and five questors. They chair two committees and are vice chairmen of five committees. Poles account for 54 MEP in the European Parliament of this term that has 732 members from 25 states.

Warsaw, July 26: Polish-U.S. talks aimed at drafting a visa waiver agreement are underway, the foreign ministry reported. In a statement the ministry wrote that a possible visa waiver agreement had also become a permanent element on the agenda of European Commission - U.S. talks at the initiative of Poland and other newly admitted EU members. As a related decision depends on the U.S. Congress, the ministry has been in touch with representatives of U.S Polonia community lobbying for the cause. Representatives of respective Polish and U.S. authorities have so far met six times in Warsaw and Washington to work out principles of a passengers' initial inspection. The initial clearance is necessary as both sides' experts have decided that full immigration clearance according to U.S. standard procedure is impossible in Poland at present due to limited infrastructure of Okecie airport in Warsaw.

Lublin, Bielsko-Biala, July 23: Former prisoners of Nazi concentration camp in Majdanek and young people jointly appealed for peace and respect to human dignity during a ceremony marking the 60th anniversary of the camp's liberation. Apart from war veterans and local gov't representatives the ceremony was attended by officials from embassies of the State of Israel, Germany, Czech Republic and Ukraine. Wreaths were laid at the foot of the monument to the Struggle and Martyrdom. Some 250,000 people from 52 countries were murdered by the Nazis in Majdanek between 1941 and 1944. Another appeal for peace to the world leaders was issued by children from Bulgaria, Romania, Turkey, Poland, Sri Lanka and Taiwan in the ruins of a former crematorium at Birkenau, another Nazi death camp.

Warsaw, July 23: Polish hydrologists are winding up a research program launched under the US-Poland Technology Transfer Project sponsored by the U.S. National Center for Computational Hydroscience and Engineering and the geophysics institute of the Polish Academy of Sciences. A meeting summing up the 12-month program will take place at the end of September in Warsaw. The program is co-financed by the USAID. Eight projects concerned hydrological testing in the Vistula and Narew estuaries, water flow tests in the Skawa river, sedimentation, and river bed erosion.

Warsaw, July 29: The Polish government has seen issues pertaining to former German landed property in the Polish western and northern territories as conclusively closed and settled, and has considered all legal claims in that field to be completely groundless and illegal, deputy foreign minister Jan Truszczynski said in the Sejm Thursday. The government stand is in full compliance with the position voiced by Sejm deputies in their resolution passed last March, he added. The properties had been taken over by Poland as war reparations for immense losses suffered during the 2nd world war and could not be handed back. The minister noted that the German government did not officially support actions by its citizens who were trying to regain property in Poland. He cited statements by president Horst Koehler and chancellor Gerhard Schroeder to support this claim. However, Truszczynski did admit that the German government, while not supporting claims by its citizens, "has not declared an outright resignation on behalf of its citizens from raising the damages claims." The German government was motivated by fear of multimillion claims against the treasury that could be levelled by German individuals, he explained and agreed that the German government could not prevent its citizens from lodging claims with foreign courts, while the Polish government could not deny access to Polish courts to citizens of any foreign country. Moreover, it could not be ruled out that German citizens would file claims with the European Tribunal of Human Rights or with the Tribunal of Justice. The minister emphasized that such claims would not be successful.

Warsaw, July 29: Members of the Citizens Platform (PO) parliamentary caucus picketed the Belarussian embassy in Warsaw in protest against repressions of politicial oppositionists in Belarus. Among the crowd were PO leaders Donald Tusk, Jan Rokita and Zyta Gilowska. (In a statement read by Tusk PO protested against "president Aleksandr Lukashenka's undemocratic practices" and pledged support for Belarussian freedom. We are preoccupied with our Polish affairs but we mustn't forget others in need. Especially friends across the eastern border, Tusk said, stressing that the Belarussian government has been trying to delegalize Belarus' democratic opposition.

Warsaw, July 29: Piotr Cywinski, President of the Catholic Intelligentsia Club (KIK) in Warsaw was elected President of the Pax Romana International Movement of Catholic Intellectuals in Europe during the two-day World General Assembly which ended in Cracow. Cracow event was preceded by Pax Romana World Congress held in Warsaw for three days. Piotr Cywinski, 32, is secretary of the International Auschwitz Council and chief editor of the Polish-Jewish information service "Diapozytyw.pl". Pax Romana is a movement affiliating Catholic academic and students organisations, including Warsaw-based KIK. It is an open forum for thoughts and dialogue between various cultures, generations and communities.

Warsaw, July 29: The Senate ok'd a bill partially granting homosexual couples the same rights as heterosexual marriages. The bill compiled by a gay-lesbian team under Maria Szyszkowska (Democratic Left Alliance, SLD) and signed by 36 senators, foresees registrations of homosexual unions on similar principles as regular marriages. Partners in such unions will have property, inheritance and other economic rights ensuing from their relationships. The bill does not permit adoption by homosexual couples but allows them to care for their own children.