Warsaw Insight #2 - key policy developments in Poland

Warsaw Insight #2 - key policy developments in Poland

• 2.
  Welcome to thesecond edition of MSLGROUP’s Warsaw Insight. We present this to you with the idea that the knowledge and insights about the legislative, regulatory, and leadership changes in the Polish government and European Union are worth knowing. This newsletter is not meant to be exhaustive. Instead, it seeks to provide summary and updates affecting the market and thus, your business. We generate this information via our daily work at MSLGROUP and feel that such infor- mation has a value to our clients and the market overall. For MSLGROUP, understanding the markets within which we operate is a guiding principle. There- fore, we believe that our Warsaw Insight will de- liver you a valuable source of knowledge, infor- mation, and news. We present to you the Warsaw Insight with hope that it meets your expectations. If you need additional information regarding our services, we would be more than happy to talk to you. MSLGROUP Poland, Public Affairs Team The ongoing election campaign is the hot topic in politics, but Poles do not seem to be interested in it. It is expected that only about 20% of voters will take part in elections. According to current polls (Homo Homini, April 23rd), the two leading parties have almost equal support: Civic Platform (PO, 31%) and Law and Justice (PiS, 30%) - each would receive 17 seats in the European Parliament. The third most pop- ular party, Left (SLD, 13%) would take 7 seats, and the current coalition party of PSL (with 7% would take 4 seats). A coalition of Janusz Palikot and former president Aleksander Kwasniewski is 5th (3 seats with 6%), and the last – the pop- ulist liberals of Janusz Korwin-Mikke (3 places with 5% of support). Neither of the two small conservative parties - Zbigniew Ziobro’s Solidar- na Polska and Polska Razem of Jarosław Gowin, nor the nationalistic Ruch Narodowy (1%) are ex- pected to garner enough votes to earn a seat at the European Parliament. The main political topic not associated with the election is the energy security of Poland, especial- ly within the context of Central and Eastern Eu- ropean countries’ dependence on Russia. Poland is attempting to create a pan-European, energy coalition that would force Russia to treat all EU partners equally regarding gas and oil purchases. Additionally, due to ongoing discussions on mov- ing to a greater proportion of green energy, PM Donald Tusk continually confirms the importance of coal in our industry and focuses on supporting the mining industry that is currently having prob- lems with the non-competitive prices of Polish coal. The increase of Poland’s role at an inter- national level clearly strengthens support for the ruling Civic Platform, that - after many months of losing polling numbers to Law and Justice, is once again back on top. April was also the first month when Poles had the chance to decide whether to stay in the state-sup- ported pension system (ZUS) or to partially go back to private pension funds (OFEs). Of the 14 million people in the system, less than 60,000 so far have decided to sign a contract with OFEs. This is a great success for the government as they managed, without major protests from the pub- lic, to revert pension system reforms introduced 15 years ago. Lukasz Jachowicz, Head of Public Affairs MSLGROUP Poland [email protected] @ljachowicz
• 3.
  ul. Domaniewska 42 02-672Warszawa T: +48 22 278 38 00 F: +48 22 278 38 74 Governmental representative, Hanna Tro- janowska, has completed her work as the Pol- ish Government’s Plenipotentiary for Nuclear Energy. For the last five years, Ms. Trojanows- ka was responsible for the overall development and implementation of nuclear energy in Po- land. As part of her duties, she prepared and submitted Polish Nuclear Power Program (PPEJ) to the Council of Ministers. The document was adopted by the government on January 28. April 11 The Minister of Education removed Piotr Dmo- chowski-Lipski from the position of Director of the Centre for the Development of Education (ORE) in Warsaw. The duties of the Director of the Cen- tre for the Development of Education in Warsaw have been entrusted to Aleksandra Zawłocka since May 8. In June, the terms of the current Warsaw Stock Ex- change authorities will end and the next CEO will be indicated by the Minister of Treasury. Possible candidates are: Adam Maciejewski (current CEO of WSE), Paweł Tamborski (Undersecretary of the Ministry of Treasury), Wiesław Rozłucki (co-found- er of Warsaw Stock Exchange and its first presi- dent in 1991-2006). The Supervisory Board of PGNiG appointed Walde- mar Wójcik as a member of the Board following his election by the employees of the company. Wójcik is a graduate of the Academy of Mining and Metallurgy in Krakow. He has been associated with PGNiG since 1981, and from 1994-1996 he was elected as a member of the works council of the company. From January 2009 to August 2010, he served as Vice President of the Management Board of PGNiG for oil mining. In September 2010, he was a member of the board of Polish Oil and Gas Company Libya. April 10 Jakub Jaworowski has been nominated for the po- sition of Secretary of State in the Chancellery of the Prime Minister and the Secretary of the Eco- nomic Council. Jaworowski is a Warsaw School of Economics graduate and also studied finance at the Johannes Gutenberg University of Mainz as part of the Polish-German Academics’ Forum. He holds a Master’s degree in history from the Uni- versity of Warsaw. Jaworowski was the macro- economic correspondent for Reuters in Warsaw (2006-2011), an economist at BPH Bank (2011) and starting from 2012, was Counsellor at the Office of the Economic Council to the Prime Minister and at Department of Strategic Analyses. He is also a candidate in the Chartered Financial Analyst (CFA) program. March 25
• 4.
  Parliament adopted thedraft law on oil and liq- uid fuels reserves. It assumes a partial takeover of entrepreneurs’ obligations to create and main- tain reserves of oil and fuel with the public entity (Agency for Material Reserves). This will allow do- mestic enterprises in the oil sector to significantly reduce operating costs. April 24 The Council of Ministers adopted a resolution on the adoption of the strategy, “Energy Security and the Environment - the perspective of 2020.” The strategy for Energy Security and Environment (BEIŚ) includes two important areas: energy and the environment, and identifies the key reforms and necessary steps that should be taken by 2020 to meet the main objectives of the Energy Securi- ty Strategy and the Environment. The goal of this resolution is to provide a high quality of life for present and future generations, taking into ac- count environmental protection and the creation of conditions for sustainable development of a modern energy sector so that it is able to provide for Poland’s energy security and a competitive and efficient economy. April 15 The creation of a new support system based on an auction system, the simplifying of licensing pro- cedures, the introduction of “Prosument” energy production, as well as the possibility of produc- ing energy from renewable sources for users own needs are the main objectives of the Act on Re- newable Energy Sources (RES). The document was adopted by the Council of Ministers on April 8. The Prime Minister presented a plan to reduce the European Union’s energy dependency. It concerns: joint negotiation of new contracts with external suppliers, strengthening solidarity between the Members in the event of supply disruption, en- ergy infrastructure, including cross-border con- nections, interconnectors and storage and is to be financed from the EU to an acceptable level - 70%. It also includes: the full use of available European sources of fossil fuels, while respecting the environment, imports of oil and gas to the EU from other partners, especially the United States, ensuring the energy security of the EU neighbors, and strengthening the energy community includ- ing the Balkan countries, Ukraine and Moldova. April 1 The freedom of speech, privacy, and the availabil- ity of networks - these are some of the global In- ternet governance principles adopted in the final document known as NetMundial Multistakeholder Statement. Rafał Trzaskowski was present during NetMundial, a two-day meeting in Brazil. April 25 In connection with the EU legislative process of the draft regulation on the European single digital market, the Ministry of Administration and Digiti- zation offered a consultative meeting on April 17. The theme was on net neutrality and professional services. An important context of the meeting was the position of the European Parliament which was adopted on April 3. April 25 The Parliamentary Committee on European Union Affairs was briefed by the Minister of Administra- tion and Digitization Rafał Trzaskowski on the Eu- ropean Commission communication on the func- tioning of the safe transfer of personal data to the United States (“Safe Harbour”). In July 2013, the European Commission concluded that the Safe Harbour may constitute a breach of EU rules on personal data protection, especially in the con- text of spyware such as PRISM. The most serious ul. Domaniewska 42 02-672 Warszawa T: +48 22 278 38 00 F: +48 22 278 38 74
• 5.
  The construction ofKormoran II, the Polish mine destroyer, has begun. Ships of this type will be used by the Navy in the Baltic and North Seas. The contract was concluded in Gdynia, Poland on Sep- tember 23, 2013 in the presence of the Minister of Defense and Prime Minister Donald Tusk. Construc- tion of the first unit is to be completed in 2016, and the Navy will receive next models respective- ly in 2019 and 2022. Fulfilling the PLN 1.2 billion contract is a consortium under the leadership of the Grupa Remontowa. It consists of the Stocznia Marynarki Wojennej, Centrum Techniki Morskiej and Centrum Techniki Okrętowej. April 28 President of Poland Bronisław Komorowski signed a decision on the use of Polish military contingents in the European Union military operation in the Central African Republic. The mission will take place from 1 May to 31 October. The provision re- lates to the involvement of around 50 soldiers and military employees. April 24 On Friday at the headquarters of the General Command of the Armed Forces, President of Po- land Bronislaw Komorowski signed a decision on the use of a Polish military contingent - composed of allied forces from the North Atlantic Treaty Organization – for a military surveillance mission over the airspace of the Republics of Estonia, Lith- uania, and Latvia. April 10 The Subcommittee on Emergency chaired by Ms. Renata Butryn ended work on the official draft of the Offset Act on Thursday, April 3. The new offset law transfers the responsibility for entering into similar agreements from the Ministry of Economy to the Ministry of Defence and simplifies proce- dures. It also increases the responsibility of the foreign supplier in respect of non-compliance. Minister of Defense Tomasz Siemoniak visited United States, where he met with secretary of de- fense, Chuck Hagel. After the meeting, Mr Siemo- niak underlined that Poland is finalizing the issues regarding defense export licenses for acquiring Lockheed Martin’s JASSM missile. Furthermore, Mr Hagel agreed for the Solidarity & Partnership program that will be a basis for wide PL-USA mili- tary cooperation and a major military presence of USA in Poland. The Committee of the Council of Ministers accept- ed the draft law on reverse mortgages, submitted by the Minister of Finance. It will be a special type of credit, allowing banks to provide funds which will be repaid only after the death of the borrow- er in exchange for protection laid down by him on the property, to which he has referred to his rights (ownership, co-ownership, cooperative ownership right to the premises, and the right of perpetual usufruct land). April 29. In connection with the issuance of new recom- mendations by the ECOFIN in December 2013, as- suming the elimination of the excessive deficit in 2015 and the need to inform the European Com- mission and the ECOFIN at least every six months on progress in the implementation of the recom- mendations, the Ministry of Finance has prepared Information on the actions taken by Poland to implement the recommendations of the Council objection is that the Federal Trade Commission does not enforce compliance with the rules of the program. April 11 The final cancelation of roaming charges for calls, text messages and retail data transfer by the end of 2015. This is the most important message for consumers coming from the European Parliament in Poland and throughout Europe. MEPs adopted the position of the Telecommunication package. April 3 The President signed the law on public collections via the internet. Now citizens themselves will de- cide the purpose for which donations are collect- ed. April 1 The Ministry of Administration and Digitization conducted a meeting with representatives from copyright holders, the IT sector and NGOs on the implementation of the e-services directive (esp. the notice & takedown procedure). The minister asked for a compromise between all interested parties before works on amending the current leg- islation continue.
• 6.
  tivity, submitted bythe Minister of Economy. En- trepreneurs from EU providing goods to the Polish market will not have to post the address of Pol- ish distributor on the package. This solution will save entrepreneurs who do not have to change the labeling of the product (or its packaging) about PLN 70 million per year. With lower costs of bring- ing goods to the Polish market, it enriches their offers to the domestic market. The new regula- tion is to apply from 1 January 2015. April 15. within the framework of the excessive deficit pro- cedureforPolish.InformationwassentonApril15to the European Commission and the ECOFIN. April 16 Improving tax compliance and effectiveness of tax administration and fiscal control are the most important areas for action in the field of taxation, which presented the Minis- ter of Finance Mateusz Szczurek April 15 during a press conference at the Ministry of Finance. The Council of Ministers adopted a draft law amending the Law on Freedom of Economic Ac- The next session of Senate will be held on the 21st and 22nd of May. European Parliament elections will take place on May 25th, 2014. Presidential elections in Ukraine will take place on May 25th, 2014. The next session of Sejm (Lower House of Parliament) will be held on the 28th, 29th, and 30th of May, 2014. On May 31 Switzerland will no longer be authorized to limit the number of immi- grants from certain European countries. Countries whose nationals will no longer be subjected to limits in accordance with the principles of free movement of people are among others: Poland, Estonia, Hungary, Latvia, Lithuania, the Czech Republic, and Slovakia.
• 7.
  MSLGROUP is oneof the oldest public relations agencies on the Polish market. Every day, our team provides companies, organizations and institutions with advice regarding their rep- utation and image. We are close to business and we perfectly know present communication challenges. Our rich output and highest quality of services won us Impactor 2010 and 2011 awards for the Agency of the Year. We are part of the Publicis Groupe – third largest global marketing communication network offering services in the fields of public relations, public affairs, Internet and social media communication, corporate communication and event marketing. MSLGROUP has offices in over 80 countries, including partner agencies. It works on the territory of America, Central and Eastern Europe, Africa and Asia. MSLGROUP consists of market leading corporate and fi- nancial communications agencies including Kekst & Company, JKL, QORVIS, CNC and Publicis Consultants, as well as digital marketing experts and design agency, SAS. We perceive public affairs activities as a complex communication challenge. We know that nowadays decisions are made not only in the privacy of ministerial offices, and their final shape is largely shaped by, for example, grassroots civil initiatives or social media. For each client we develop a comprehensive tailored strategy, adapted to his needs, expec- tations and capacities. Among others, our activities include lobbing, media relations and activities in electronic media. Their purpose is to shape public opinion, attract attention to a specific issue, promote certain law regulations, build reputation and solve crisis situations. High ethical standards underlie all our activities. We are entered as a professional body en- gaged in lobbying activities in the register of the Ministry of Interior and Administration. We act accordingly to the Code of Good Practices of the Polish Public Relations Consultancies Association (ZFPRR). In the frame of the Public Affairs we offer the following services: • Analysis of the environment in which our clients operate, • Identification of stakeholders and creation of a map of influence, • Polish and EU legislative process monitoring, Copyright (c) by MSLGROUP Poland Sp. z o.o. 2014 Permission to use, copy, or distribute this report is hereby granted without fee, provided that the copyright notice appears in all copies. The report is originally distributed by MSLGROUP Poland - to be added to the distribution list, please send a request to [email protected]. CONTACT: CEO Corporate & Financial Communications Paweł Tomczuk Tel. +48 600 489 609 e: [email protected] Head of Public Affairs Łukasz Jachowicz Tel. +48 601 416 560 e: [email protected] Governmental Affairs Practice Leader Małgorzata Dworzynska Tel. +48 605 296 457 e: [email protected] Associate Public Affairs Jakub Olek Tel. +48 606 319 500 e: [email protected]