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The newspaper Rzeczpospolita writes, that this year the privatisation of 316 firms is to begin. The priority is to be the Warsaw Stock Exchange. The State Treasury wants to dispose of 47% of its 98% share; a larger portion of app. 30% should reach institutional investors and 10-15% being sold by public flotation.

In 2008 the State Treasury intends to sell off its shares in the following banks: Bank Gospodarki Żywnościowej, the BPH Bank, Bank Handlowy and BZ WBK. It will also be seeking investors that are keen to take over its shares in the BPS Bank and in Pekao SA. - By the end of 2009 the State Treasury will only keep shares in PKO BP - Mr Michał Chyczewski, the deputy minister of the State Treasury forecasts.

As the newspaper writes, in the energy sector an increase in capital investments is to be expected, together with the public flotation of two groups: the Polska Grupa Energetyczna (PGE) and Enea. The Nitrogen Works in Tarnów and Kędzierzyn will also be submitted for privatisation.

Lublin’s Bogdanka mine, Wałbrzych’s Victoria Coke Works and the Jadwiga Cokery in Zabrze will also be put onto the stock exchange. The Treasury also expects to sell off its remaining shares in Ruch and 17% of the shares in LOT.

The plans to create new national companies have also been abandoned. The state will also dispose of the two remaining nationalised Cefarm firms (pharmaceuticals), four Polmos’ (alcohol), five health resorts and two telecommunications firms (Telefony Opalenickie and Telefony Podlaskie).

Minister Grad predicts the further privatisation of companies that are not to be found on the list: PZU, KGHM, Lotos, Orlen and PGNiG.

- We will provide information regarding our plans in terms of these firms in February, when the council of ministers will concern itself with preparing a specific schedule for privatisation over the coming four years - Mr Grad stated. - The list for 2008 is particularly long, because we want to completely eliminate the state’s ownership from certain sectors, which it should have ceased years ago.

Source: Rzeczpospolita

The Deputy Premier said that the priority for the Ministry of the Economy was laws regarding “better regulation”, i.e. regulations easing the running of businesses. After passing the most urgent laws for the deregulation of the economy, in six months time the ministry is to begin preparing more “all embracing” statutes.

In the Minister’s opinion, under the obligatory regulations there should be a move away from the pay limits imposed on the companies of the national treasury (regulating the pay of management personnel). If we hope to have professional managers in these businesses we must pay them well - he said.

On the question of whether this government will be more pro-American than the previous one, Mr Pawlak said, that the government intends to use its American experiences for introducing modern technology, or to link scientific research to the economy. (PAP)

As Ms Ostrowska stressed, the ministry will also analyse unemployment payments made and the effectiveness of methods for activating employment.

One of the concepts considered by the ministry is the introduction of numbered cards by which the unemployed will gain access to job offers from all of Poland, using a special internet website.

The deputy minister said that there would also be special activation programmes for people under 25 years of age and also for the “50+” group (people over 50). She also drew attention to the role of continual education and of convincing through public opinion of the need for it in a free market. Ms Ostrowska, underlined that the situation on the labour market is constantly improving - the unemployment rate could fall to 9.9% by the end of the year.

Dr Wojciech Nagle, an expert from Business Centre Club, stressed that the government should form a policy for a harmonising pay and retirement pensions for all professional groups, in order to avoid social conflicts.

As Ms Ostrowska emphasised, the government will implement a policy of social unification. One of its targets is to reduce unemployment, which in turn will lead to the reduction in poverty and social exclusion.

INVESTMENTS IN POLAND

- The reason for this decision is the greater competitiveness of the Dolny Śląsk plant. Our competitors have already moved most of their factories to countries with smaller production costs, which has greatly increased the emphasis on reducing prices - explained Mr Magnus Yngen, the director of Electrolux Major Appliances in Europe.

- Electolux predicts the employment in Świdnica of at least 400 people and an investment of 40 million EUR. The corporation’s current decision hastens this intention - said Mr Waldemar Skórski, the vice-president in Świdnica. - Electrolux together with Colgate-Palmolive is for us a strategic investor. In a word it’s the generator that will attract other Investors to Świdnica. What’s more the Swedish company has at its disposal a 300 ha site, so space for the investor’s development won’t be lacking.

The Świdnica factory was opened in 2006; the corporation intends to invest over 40 million EUR here, as a result of which the targeted production will reach 600 thousand cookers per year. At the moment the firm produces almost 150 thousand free-standing cookers annually, of which 90% will be sent to foreign markets; 200 workers are employed there.

The Labour Market: The unemployment rate in December increased to 11.4% from 11.2% in November - the deputy minister for labour Ms Czesława Ostrowska stated. - At the end of December according to the estimates of the Ministry for Labour and Social Policy, the unemployment rate was 11.4%, this is a seasonal increase. I think that if the winter season is short there will shortly be an outflow of seasonal workers - Ostrowska said. The highest unemployment was noted in the voivodships of: Warmińsko- Mazury - 19%, Zachodniopomorskie - 16%, Kujawy-Pomorze - 15.1%, together with the lowest in Wielkopolska - 8% and Małopolska - 8.8%.
Inflation: The growth in the indicator of the prices of goods and consumer services in December was 0.3%, which converts to an annual inflation indicator of 4.0%, as against 3.6% noted in November, the Ministry of Finance stated in January. - If the growth in the prices of food slows down, then inflation will reach its peak of around 4% in the I quarter of 2008, and by the end of the year will fall to 2.5% - the deputy finance minister Ms Katarzyna Zajdel - Kurowska, stated. The Ministry forecasts a several point increase in the strength of the PLN in 2008.
The motor trade: Almost 294 thousand new passenger cars and a million used cars were imported from abroad last year. The sales of new cars rose by 23% (55 thousand cars) - Rzeczpospolita stated. Equally the interest in used cars imported from Europe rose by 22%. Over the year 994 thousand of them were imported, more than half were over ten years old and only one in four was less than four years old. As Rzeczpospolita asserts, the unofficial figures relating to the amount of sales in car showrooms, also confirm the increase in expenditure by Poles on cars throughout the year. The largest suppliers of passenger cars, Toyota, sold almost 34 thousand vehicles, gaining a 11.5% share of the market. Just following was the previous leader Skoda, with a figure of 900 fewer cars sold, their market share falling from 12% to 11.2%. Third place was taken by FIAT, selling almost 28 thousand vehicles. This was a thousand above Opel who dropped to fourth place.
FDI inflow in Poland in 2000-2007:
GDP growth in years 2000-2008:
Exchange rates (as of 10.01.2008):

Buy

Sell

USD

2.4274

2.4764

EUR

3.5722

3.6444

Source: www.nbp.pl

The last year for K-S SEZ passed with particular intensity. During this period 12 companies began trading, while the zone’s area was increased by the inclusion of the two new sub-zones of Lubin and Rzepin (198 ha jointly). The zone’s management company spent 13 million PLN on infrastructure investments.

Currently the company negotiates with 9 firms, including companies from the sector of bio-fuels, electronics and energy. The initial declarations of investments of 40 million EUR could create ca 650 jobs. The Zone anticipates the granting of at least 15 new permits for businesses over the year.

The K-S SEZ’s plans for the future are to embrace the establishment of the Western Business Park in Gorzów, a paper cluster in Kostrzyn on the Odra River, together with a petrol station, workshops area and hotel within the Kostrzyn Sub-zone.

As the Central Statistical Office (GUS) stated, in November 2007 the rapid rate of increase average employment in the business sector was maintained. The level of unemployment was steadily reduced, whereas in the structure of unemployment there was a significant fall in the ratio of young people (up the age of 25).

The falling unemployment was accompanied by an increasing demand for labour. At the end of the III quarter, the greatest numbers of jobs created was for industrial workers and tradesmen, their numbers were increased the most in fields of unskilled and semi skilled work (an almost threefold increase on an annual scale).

According to GUS at the end of the III quarter 2007, a high recorded growth was recorded in the widely defined sector of services, trade and repairs, in hotels and catering, financial services, property services, industrial processing and also in building and construction.

A drop in average employment was noted however, as in the previous year, in mining, agriculture, forestry and in education. The unemployment rate at the end of September 2007 was 11.6% of the people that were professionally active (a year earlier 15.2%). Compared to September of the previous year, unemployment fell in all the voivodships, the highest rates of unemployment remained in the Warmińsko-Mazury and the Zachodniopomorskie voivodships.

The average gross rates of pay in the national economy of the period of the three quarters of 2007 formed at 2,685 PLN, i.e. 8.5% higher than the analogous period in 2006. In the public sector it was 2,964 PLN (an increase of 7.7%) and in the private sector 2,527 PLN (an increase of 9.6%).

In comparison with the 9 month period of the previous year, through all sectors there was an increase in pay, the highest was in the sectors of: the health service and social assistance, building and construction and in financial services.

The greatest pay increases (of over 10%) were noted in the Pomorskie, Podlaskie and the Wielkopolskie voivodships. Higher than average salary increases were noted in the Mazowieckie, Pomorskie and Śląskie voivodships.