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BALTICS
Lithuanian economy shrank 14.3 pct last quarter, prolonging decline
27.10.2009, 11:42
Lithuania’s economy contracted an annual 14.3 percent last quarter, extending the European
Union’s deepest recession, after austerity measures undermined demand and business
investment in the Baltic economy, Bloomberg reports.
The pace of contraction slowed from a revised 19.5 percent contraction in the second quarter,
the Vilnius-based statistics office said in an e-mailed statement today, citing preliminary data.
The median estimate of six economists in a Bloomberg survey was for a 19.5 percent drop.
From the second quarter, output grew 6 percent after slumping 7.7 percent in the three
months through June, the office said.
The former Soviet states of Estonia, Latvia and Lithuania are suffering Europe’s severest
economic decline after the credit crisis choked lending and brought to a halt the period of
prosperity that had followed the countries’ 2004 EU accession. The Baltic region is now
enduring the “hard landing” that economists, rating agencies and international institutions had
warned of since at least 2007.
The increase in quarterly output ended a technical recession that had lasted five quarters,
according to the statistics office. Latvia and Estonia have yet to report third- quarter GDP
data.
Finance Minister Ingrida Simonyte said on Oct. 16 that the country may start an export-led
recovery in the second half of next year. Even so, the finance ministry estimates output will
shrink a further 4.3 percent in 2010.
“Somewhat smaller drops were registered in the industrial sector, which will help keep the
GDP figure out from the 20 percent zone,” Jekaterina Rojaka, a Vilnius-based economist
with DnB Nord Bankas, said before the data was released today. “Without the industries’
impact, GDP would have passed the 20 percent line substantially.”
Industrial output, which accounts for about 20 percent of the economy, shrank an annual 14.6
percent in third quarter, improving from a 20.4 percent drop in the previous quarter. Industry
output has faltered in Lithuania, which pegs the litas to the euro, as exports sag more than in
other parts of eastern Europe. That’s forced employers, struggling to adjust to tighter credit
conditions, to push through wage cuts to stay competitive. edit.
Stockholm-based Swedbank AB and SEB AB, the two biggest lenders in the region, both
reported soaring credit losses in the third quarter stemming from the region’s economic crisis.
Government officials in all three countries have said they won’t devalue their currencies and
instead use wages cuts and deflation to bolster competitiveness, as they try to keep budgets in
line with EU rules.
The government, which is paring spending and raising taxes after the recession eroded state
coffers, has cut the budget by about 8 percent of GDP this year. Prime Minister Andrius
Kubilius said on Oct. 16 that his Cabinet plans a further fiscal consolidation of 5 percent of
GDP in next year’s budget.
Lithuania has also resisted following neighboring Latvia in requesting a loan from
international lenders such as the International Monetary Fund. Latvia turned to the European
Commission and the IMF for a 7.5 billion-euro loan last year after it took over its secondbiggest bank
http://live.balticbusinessnews.com//?PublicationId=8e140709-a30d-418b-8fcdd40d067263e1
Lithuanian economy rebounds in Q3
By: The Associated Press | 27 Oct 2009 | 07:33 AM ET
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VILNIUS, Lithuania - Lithuania's economy rebounded in the the third quarter, technically
lifting it out of recession, although activity remains well below year-ago levels, official data
showed Tuesday.
Statistics Lithuania's preliminary estimate for a 6 percent increase against the second quarter
beat most analysts' expectations.
"This is a better result than anyone expected and could be a sign of economy stabilization.
Market expectations now are slightly better, and we also see exports are getting back on the
track," said Vilija Tauraite, a financial analyst at SEB, a Swedish-owned bank, in Vilnius.
Third quarter activity was robust due to gains in the agricultural sector, Statistics Lithuania
said.
However, the Baltic state is still suffering the consequences of its exposure to the financial
crisis. Gross domestic product was down 14.3 percent on the year due to a drop in the energy,
construction and transportation sectors, Statistics Lithuania said
Lithuania had one of the poorest performing economies in the 27-member European Union in
the second quarter, with GDP collapsing 19.5 percent on an annual basis. Only neighbor
Latvia, whose economy contracted 19.6 percent, was worse.
Estonia, the third Baltic state, posted a fall in GDP of 16.6 percent in the second quarter.
Estonia and Latvia have yet to release third quarter statistics.
Together, the three Baltic countries have the most troubled economies in the EU after being
among the most dynamic when they joined the bloc in 2004.
Lithuania's GDP is expected to decrease by some 20 percent this year.
http://www.cnbc.com/id/33490315
CZECH REPUBLIC
Czech senators mount Lisbon legal challenge
Tuesday, 27, Oct 2009 12:00
A group of Czech senators are taking their fight against the Lisbon treaty to the country's
constitutional court today, in one of the last remaining obstacles to its complete ratification.
Of the EU's 27 member states, only the Czech Republic has not yet ratified the treaty, which
needs unanimous ratification to come into effect.
If the Czech constitutional court rules the treaty is unconstitutional because it infringes
national sovereignty, president Vaclav Klaus' opposition to Lisbon could derail the process.
That would give Tory leader David Cameron the time to instigate a referendum on the subject
if he wins the next election, potentially bringing the entire European project to a standstill.
Mr Cameron has promised a referendum only if the treaty has not yet been fully ratified
across the EU.
But if it throws the case out, pressure from other European nations will make it much harder
to continue to hold out.
Mr Klaus, a natural eurosceptic, said last week his reluctance to sign the treaty because of
concerns it could open up Czech citizens from property claims by Germans ousted after the
second world war had been addressed.
Sweden, which currently holds the rotating presidency of the EU, has agreed the Czech
Republic could agree an opt-out to the Charter of Fundamental Rights contained in the
Lisbon treaty.
An immediate ruling appears unlikely, Czech prime minister Jan Fischer said yesterday.
http://www.politics.co.uk/news/foreign-policy/czech-senators-mount-lisbon-legal-challenge$1336974.htm
Greens propose bill under which Czech PM ratifies Lisbon
12:31 - 27.10.2009
Prague - The Green Party (SZ) will submit an amendment to the Czech Constitution based on
which the prime minister may sign the Lisbon treaty instead of the president on behalf of the
country, Greens head Ondrej Liska told journalists.
Under the proposal, the president may decide to ask the prime minister to sign an
international treaty instead of him.
The Czech Republic has been the last EU country that has not yet signed the Lisbon treaty.
President Vaclav Klaus, who has opposed the treaty since the beginning, presented an
additional demand for an exemption from the EU charter of rights for Czechs.
Klaus said he fears that the charter, if applied to Czechs, may trigger property claims by
ethnic Germans who were transferred from Czechoslovakia after World War Two.
The Greens repeatedly criticised Klaus for the opt-out he demands. They believe the
president is not authorised to present additional demands in this stage of the ratification
process.
Liska said a constitutional complaint might resolve the issue but this would probably cause
further protractions.
Representatives of EU member countries will discuss Klaus's demand at a meeting opening
on Thursday.
The Constitutional Court today assesses whether the treaty is in line with the Czech
constitution because of a complaint, which Klaus also supported.
Liska said the proposal is to resolve situations where the president is against the ratification
of the document but does not want to act against the will of the parliament that passed it.
"We have found a way of stopping the damage that President Klaus causes to the Czech
Republic in Europe," Greens MP Martin Bursik said.
The proposal also introduces a deadline for the presidential signature under the international
agreements. If the president did not sign a treaty by a set date, the power would go to the
prime minister.
Such deadlines are set for the signing of Czech bills into laws by the president.
The Greens will try to gain support of other parties in parliament for their proposal, Liska
said.
http://www.ctk.cz/sluzby/slovni_zpravodajstvi/zpravodajstvi_v_anglictine/index_view.php?i
d=404787
Czech Republic interested in TAL pipeline
Tue, October 27, 2009
The Czech Republic may raise the possibility of acquiring a small stake in the Transalpine (TAL)
pipeline with the US Vice President Joe Biden, according to Czech Industry and Trade Minister
Tomas Huener.
The 465 km TAL pipeline runs from Trieste, Italy to Karlsruhe, Germany and the Czech
Government is pursuing a small stake in order to get a privileged access to the pipeline capacity
from Trieste, which links up with the Ingolstadt-Kralupy-Litvínov (IKL) pipeline that leads into
the Czech Republic.
The TAL pipeline is owned by a consortium of eight companies comprising OMV, Royal Dutch
Shell, Ruhr Oel, Eni, BP, ConocoPhillips , Total S.A. and US-based ExxonMobil.
http://pipelinesinternational.com/news/czech_republic_interested_in_tal_pipeline/008547/
Czech utility CEZ bids for 21.3 pct stake at Enso
Tue Oct 27, 2009 4:53am EDT
WARSAW, Oct 27 (Reuters) - Czech utility CEZ (CEZPsp.PR) filed a bid for a 21.3 percent
stake at German utility Enso held by Sweden's Vattenfall [VATN.UL], CEZ said in a
statement filed to the Warsaw bourse.
On Friday CEZ bid for a 100 percent stake at another German utility Geso, which controls
over 50 percent of Enso.
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSWAR011034200910
27?rpc=401
Czech Industry in Recession as Car Schemes End, Citigroup Says
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By Agnes Lovasz
Oct. 27 (Bloomberg) -- Czech industry has sunk back into a recession as Germany, the
biggest market for its exports, ended car-scrapping incentives, Citigroup said.
An index of industrial confidence worsened to minus 17.3 in October, from minus 14.3 in
September, and held below minus 10.3 in October 2008, the Prague-based statistics office
said yesterday.
“The business-cycle watch suggests industry has re-entered recession after seven months of
upswing,” Jaromir Sindel, Prague-based economist at Citi wrote in an e-mailed note.
“Worsening expectations for industry likely reflect the end of the car-scrappage subsidies
scheme in Germany, which lifted output in the car industry. We expect the recovery in
industry to be W-shaped, but any worsening to be limited by better prospects for euro area
GDP growth.”
Eastern Europe’s most open economy will contract 4.3 percent this year, the Finance
Ministry predicted in July, as the financial crisis shrinks global trade. German Chancellor
Angela Merkel has spent about 85 billion euros ($126 billion) to restart growth in Europe’s
largest economy.
The measures included a 2,500-euro payment to people who scrap an old car and buy a new
one. The 5 billion-euro “cash- for-clunkers” program, the world’s largest, ended this month,
removing support that shoppers have depended upon.
The Czech central bank will probably remain recovery “dovish” this year as output is likely
to dip again, and will increase rates beginning in the second quarter of next year as the
recovery stabilizes, Sindel said. Policy makers will raise rates by three-quarters of a
percentage point to 2 percent by the end of next year, he forecast.
To contact the reporters on this story: Agnes Lovasz in London at [email protected];
Last Updated: October 27, 2009 06:26 EDT
http://www.bloomberg.com/apps/news?pid=20601095&sid=az0qmXPXtTWA
HUNGARY
Hungary Doesn't Accept Modifications To Lisbon Treaty-Ministry
10-27-090737ET
BUDAPEST -(Dow Jones)- Hungary doesn't agree with any proposals that involve the
modification of the Lisbon Treaty, Hungarian Foreign Ministry spokeswoman Zsuzsanna
Matrai told Dow Jones Newswires Tuesday.
"We are working to find a solution which doesn't involve amendments to the treaty, doesn't
make the ratification process start again and doesn't involve referring to national legislation,"
Matrai said in a telephone call from Luxembourg.
The spokeswoman was referring to a Czech proposal for an "addendum" to the treaty to
protect Czechs against potential land claims from ethnic Germans and Hungarians who were
expelled from the then Czechoslovakia after World War II.
"We respect the Czech anxiety on the Lisbon Treaty, and we are working to find a solution
that is suitable for all 27 member states," Matrai said.
All European Union member states except the Czech Republic have ratified the treaty, and if
proposals sought by Czech President Vaclav Klaus are approved, he will sign the document
and it will become law.
Hungary has been looking forward to the conclusion of the treaty since it ratified it in
December 2007, Matrai said.
http://www.nasdaq.com/aspx/stock-market-newsstory.aspx?storyid=200910270737dowjonesdjonline000211&title=hungary-doesnt-acceptmodifications-to-lisbon-treaty-ministry
Hungary to Be World’s Fiscal Leader, BofA Says (Update1)
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By Tasneem Brogger and Agnes Lovasz
Oct. 27 (Bloomberg) -- Hungary is poised to emerge from the global recession as a leader in
fiscal health as years of economic pain brought on by government austerity measures pay off,
according to Bank of America Merrill Lynch.
“Hungary’s massive fiscal tightening contributed to its economic decline,” said Radoslaw
Bodys, central and eastern Europe economist at BofA Merrill Lynch Global Research, in an
interview. “This is why Hungary is going to be the world’s fiscal leader next year.”
The nation that joined the European Union in 2004 has relied on a 20 billion-euro ($30
billion) International Monetary Fund-led loan since its debt-reliant economy succumbed to
the credit crisis, forcing it to curb spending and levy more taxes to comply with the fiscal
terms of the bailout. The efficiency of budget cuts will leave Hungary with a 1.3 percent
surplus next year, adjusted for cyclical swings, Bodys estimates.
“In 2011, Hungary will probably be one of the only major countries in the world likely to be
easing fiscal policy when the whole world is tightening,” Bodys said, referring to the 40
economies that BoA tracks worldwide. “That’s what makes Hungary in the longer term
perspective quite an interesting and potentially a very strong outperforming country.” He
expects the economy to grow as much as 5 percent in 2011.
The country’s fiscal outlook also means it’s one of the best placed in the region to adopt the
euro, Bodys said.
“Honestly, I think Hungary can do it any time,” Bodys said. “I can imagine a scenario in
which they enter the exchange rate mechanism even next year, and definitely before Poland.”
Reverse Measures
The country’s bond market reflects investor anticipation of a fiscal recovery.
The yield on the three-year 6.75 percent note has shed 1.7 percentage points in the past three
months to 6.95 percent on Oct. 26, according to Bloomberg prices. That’s lower than the
benchmark two-week deposit rate, which the central bank cut to 7 percent on Oct. 19. The
yield on Poland’s comparable three-year note is up 4 basis points in the same period at 5.43
percent.
Hungary’s borrowing requirement will fall 24.8 percent next year, compared with a 24.4
percent increase for Poland, Bank of America Merrill Lynch estimates.
The budget deficit will improve to 3.8 percent of gross domestic product in 2010 from 3.9
percent this year, the government of Prime Minister Gordon Bajnai estimates.
The economy will contract 6.7 percent this year and 0.9 percent in 2010, the government
predicts, before returning to growth in 2011.
‘Very Simple’
Hungary is preparing for a fifth year of spending cuts to meet the terms of the bailout. The
government has also raised taxes and trimmed subsidies since 2006 to narrow the deficit, the
widest in the EU at the time, after burgeoning expenditures led to the nation missing its
targets for the shortfall every year between 2001 and 2006.
Growth will pick up as years of fiscal prudence allow authorities to ease policy as other
countries are forced to reverse stimulative measures deployed through the crisis, according to
Bodys.
“Growth is going to recover while inflation and the fiscal deficit will remain very low,” he
said. “That will allow them to grow even faster in 2011 because they will be able to cut taxes
in that year. The growth outlook looks good and the appreciation pressure on the currency
will be strong. Being positive on the Hungarian fixed income market is very simple.”
Currency Play
Hungary’s potential to be central Europe’s top performer marks a reversal of the status quo,
which ranked Poland the “strongest and Hungary the weakest,” Bodys said. “I think this is
going to remain the case next year, when we expect Poland to grow 3.5 percent and Hungary
to grow 0.2 percent. I think this may reverse from 2011.”
While buying Hungarian bonds over Polish debt based on “purely fundamental aspects”
makes good sense, according to Bodys, Poland may reward investors who only buy the
currency.
“Poland’s not a clear fixed income play; I would say it’s a clear foreign currency play,”
Bodys said. “I’m very bullish on the Polish economy over the next year, which means the
pressure on the currency will be clearly towards an appreciation.”
Poland is the only member of the European Union to have avoided a recession since the
credit crisis started. Output grew 1.1 percent in the second quarter, and will probably expand
0.9 percent this year, the Finance Ministry estimates. The economy will grow 1.2 percent in
2010, according to the government.
“From the purely fundamental macroeconomic perspective the appreciation outlook of the
zloty currently is the strongest since early 2004,” Bodys said. “This is mainly a function of
growth and trade balance dynamics. What it means is that the currency is going to appreciate
and you don’t want to miss that.”
To contact the reporter on this story: Tasneem Brogger in London at
[email protected]
Last Updated: October 27, 2009 02:41 EDT
http://www.bloomberg.com/apps/news?pid=20601085&sid=amwUWw6T7rX0
Hungary MOF Defends 2011, 2012 Budget Gap Targets
Publié le 27 octobre 2009
BUDAPEST -(Dow Jones)- The Hungarian Finance Ministry said Monday its budget deficit
forecasts for the coming years are achievable, in response to comments from the Fiscal
Council that questioned the targets.
"Based on the government macroeconomic path, the ministry considers its forecast for 2011
and 2012 well-grounded on both the budget deficit and external factors," the ministry said in
a release late Monday.
Hungary's Fiscal Council, an independent fiscal policy monitoring body, said earlier Monday
that Hungary risks overshooting its budget deficit targets for 2011 and 2012 by up to 0.7% of
gross domestic product in each year.
The Finance Ministry, though, said the council's calculations are based on a more pessimistic
outlook for the economy in 2011 and 2012 than its own forecasts.
"The ministry calculated risk factors that are currently foreseeable throughout the process of
budgetary planning," it said, adding that the forecasts become more precise as the target
period approaches, when planning for several years ahead.
The government is targeting a deficit of 2.8% of GDP in 2011 and of 2.5% of GDP in 2012,
according to state news agency MTI.
The Fiscal Council said risks to the government's two deficit targets include higher-thanforecast expenditure related to the central bank's losses, and lower-than-expected revenue
from consumption and personal income tax.
Hungary was hit hard by the global financial crisis because of its loose fiscal policies and
high external debt. In October last year, it became the first European Union country to secure
aid from the International Monetary Fund. In November, it set up the independent Fiscal
Council to help maintain a credible fiscal policy and, if necessary, call attention to possible
fiscal risks in the current or future budget.
http://www.easybourse.com/bourse/actualite/hungary-mof-defends-2011-2012-budget-gaptargets-751011
Railway strike brought passenger service to stand-still
Tuesday 12:11, October 27th, 2009
A two-hour strike started at 10am by railway unions brought passenger service to a practical
stand-still on Tuesday morning. One or two trains have moved, but probably only to the next
station.
Train service is expected to be reliable in and around Budapest by afternoon. Long-distance
and InterCity trains will not be back on schedule until the evening.
Railway workers trade unions have called a two-hour strike from 10am on Tuesday, chairman
of one of the five unions, Dezső Simon told MTI on Monday.
Simon said there would be no further work stoppage this week, in view of the approaching
holidays of All Saints' Day.
The strike is in protest of the closure of some secondary railway lines in the country, the
unions said.
National railways MÁV and the unions could not reach agreement even on the minimum
level of services that should be provided during a strike, Simon said. He added that though
talks with the government on a brand new long-term concept for transport policy, including
concrete plans on line closures and layoffs, failed to bear fruit, unions plan to resume talks
next Monday.
Chairman-CEO of MÁV Miklós Andrási said they would have plans for employment policy
ready for discussion by next Monday. However, the closure of 33 railway lines will be a
government decision, he added.
Railway trade union VDSZSZ held a strike from the start of service hours on October 19,
which they suspended at 9am on the same day.
http://bbjonline.hu/?id=50580
Vandals deface memorial to martyred rabbi
By: MTI
2009-10-27 10:57
Unidentified vandals smashed a stone plaque commemorating Holocaust martyr Armin
Kecskemeti, chief rabbi of south Hungary's Mako, local police told MTI on Monday.
The perpetrators knocked the tablet off the wall of a building in the street named after the
martyred rabbi, and spray-painted "What 6 million? Liars!!!" where the plaque had been,
MTI's on-site correspondent reported.
Broken pieces of the plaque were found a few hundred metres away, local police spokesman
Szabolcs Szenti said.
Kecskemeti was born in 1874, and served as Mako's chief rabbi for over 40 years. He is also
known as a historian and university professor. He died in a Nazi concentration camp.
http://www.caboodle.hu/nc/news/news_archive/single_page/?tx_ttnews[tt_news]=7125
POLAND
PiS to send Lisbon Treaty to Constitutional Tribunal?
27.10.2009 08:08
The Law and Justice Party is expected to file a request with the Constitutional Tribunal to
check the Lisbon Treaty today, despite the fact that President Lech Kaczynski has already
ratified the document.
Law and Justice MP Antoni Macierewicz claims that the party seeks verification on two
issues: that the Treaty does not allow for European Union law to undermine the Constitution
of the Republic of Poland and to receive recommendations for parliament as to which areas
of Polish law still have to be streamlined with EU law.
Mainly, Law and Justice (PiS) politicians are concerned that EU law will trump national law
and seek to determine where the Lisbon Treaty could overrule Polish law.
President Lech Kaczynski signed the Lisbon Treaty on 10 October, after promising to do so
following a 'Yes' vote in Ireland's second referendum. While the majority of the 27 EU
member states have signed the document, the Czech President, Vlaclav Klaus, still has not.
http://polskieradio.pl/thenews/national/artykul118718_pis_to_send_lisbon_treaty_to_constitu
tional_tribunal.html
Defense Ministry to spend 60 bln on modernization
27.10.2009 09:49
The Ministry of Defense plans to spend about 60 billion zloty (12.3 billion euro) by the year
2018 to modernize Poland's armed forces.
Minister of Defense Bogdan Klich announced a plan Monday to modernize the army within
14 programs: air defense systems, combat and cargo helicopters, naval modernization,
espionage and unmanned aircraft, training simulators and equipment for soldiers are just
some of the areas in which the Ministry plans to improve.
“In addition to quality and price, an essential condition for purchases of foreign equipment
will be it's 'Polonisation' and an increase in domestic arms production,” stated Minister Klich.
Klich announced plans to buy new LIFT combat training aircraft, Langust missile launchers,
Krab self-propelled howitzers, Homar rocket launchers, as well as several more Rosomak
tanks and 30 billion zloty will be spent on army modernization alone.
The Defense Minister announced that the program is intended to be innovative and will avoid
“purchasing whatever is sitting on the shelf,” with the main goal of achieving a cutting-edge
modern army by 2018.
The announcement for the extensive modernization project comes on the heels of confusion
regarding Polish troops in Afghanistan. On Friday, media outlets announced that Poland
would be increasing it's 2,000-strong force in Afghanistan by 600 soldiers, a move Klich
denied Monday. The Minister did add, however, that 200 soldiers will be deployed to the
region to be held in strategic reserve in case of emergency. Poland is participating in the
ISAF mission in Afghanistan and controls a base in the Ghazni province.
http://polskieradio.pl/thenews/national/artykul118723_defense_ministry_to_spend_60_bln_o
n_modernization.html
Budget deficit under control
Zofia Bolkowska, Marek Misiak
2009-10-27
In the eight months to the end of August 2009 budget revenue amounted to PLN183.4 billion,
compared with the PLN272.9 billion planned under the amended 2009 budget law and
PLN303.0 billion planned initially.
Indirect taxes accounted for 55.5% of the revenue, corporate income tax (CIT) accounted for
8.6%, personal income tax (PIT) accounted for 12.3% and receipts from EU funds and other
non-refundable sources accounted for 14.4%. Receipts from indirect taxes were by 2.6%
lower than a year before. Receipts from CIT were lower by 13.6% and receipts from PIT
were lower by 5.8%.
In the eight months to the end of August budget expenditure amounted to PLN199 billion,
compared with the PLN300.1 billion planned under the amended budget law and PLN321.2
billion planned initially. The implementation of the budget law’s expenditure plan was by
10.2% more advanced that a year before. Spending on domestic and foreign debt service
accounted for 10.2% of the total expenditure. After the eight months the budget deficit
reached PLN15.6 billion, or 57.5% of the total deficit planned for 2009.
http://www.polishmarket.com.pl/document/:21445,Budget+deficit+under+control.en.html?la
ng=PL
Enea privatisation tender to be repeated in December
2009-10-27
As no binding offers have been made in a tender for the acquisition of a controlling stake in
Poland's vertically-integrated energy group Enea, the Polish Treasury is going to call another
tender regarding Enea's privatisation in December 2009, Esmerk reports.
The state insists that the price for Enea's controlling stake is not excessive and that it is not
going to be reduced in the December tender. The price was the main reason why the German
RWE, which carried out a due diligence into Enea, decided to withdraw from the transaction.
(Vattenfall)
http://www.polishmarket.com.pl/document/:21437,Enea+privatisation+tender+to+be+repeate
d+in+December.en.html
Gazprom and PGNiG to squeeze Gudzowaty out of EuRoPol
27th October 2009
According to unofficial information, the directors of Gazprom and Polish Oil and Gas
(PGNiG) agreed that these two companies will be the only shareholders of EuRoPol Gaz,
which is responsible for the Polish section of the Yamal pipeline transporting Russian gas to
Germany.
This means that they will try to purchase a 4 percent stake from Gas Trading in EuRoPol
Gaz. This is bad news for Aleksander Gudzowaty who opposes this concept as his company,
Bartimpex, co-owns Gas Trading.
If, as announced earlier, Mr Gudzowaty tries to block the transaction, the whole issue might
end up in court.
The meeting between PGNiG and Gazprom directors – which might conclude negotiations
which began in the spring – is scheduled for Wednesday in Moscow.
The deputy president of Gazprom, Aleksandr Miedwiediew, and PGNiG president, Maciej
Szubski, assure shareholders that it is possible the companies reach a compromise.
If talks are successful, there should be no problems with gas supplies to Poland in the winters
of 2009 and 2010.
At present both parties have agreed that the contract should be a long-term one
http://www.wbj.pl/article-47260-gazprom-and-pgnig-to-squeeze-gudzowaty-out-ofeuropol.html?type=
SLOVAKIA
Slovakia’s central bank cautions about state budget proposal
27 Oct 2009 Flash News
In light of this year's unfavourable economic developments and the subsequent drop in the
output of companies, next year's state revenues may be even lower than estimated – with
risks lying on the expenditure side of the budget as well, reads an analysis by Slovakia's
central bank, the NBS, published in the bank's magazine Biatec, reported the TASR
newswire.
“In addition to lower tax revenues, the economic results of public administration both this
and next year will also be affected by lower revenues from social contributions,” the article
said.
Risks associated with the budget expenditures concern mainly the fact that 2010 is an election
year in Slovakia. Uncertainty is also related to the use of EU funds and the subsequent need
for co-financing from the state budget.
“Given the expected boost to the domestic economy and the planned dynamic growth in the
public debt, it would be advisable to consolidate the public-finance deficit more quickly,”
says the analysis.
http://www.spectator.sk/articles/view/36940/10/slovakias_central_bank_cautions_about_state
_budget_proposal.html
Vietnam, Slovakia boost trade, investment
Last updated: 16:14 - October 27, 2009
Businessmen of Vietnam and Slovakia have met in Hanoi to discuss how to increase mutual
understanding as well as trade and economic co-operation between the two countries.
Although trade and investment between the two business communities has seen significant
growth in recent years, bilateral trade has not matched the two countries’ potential and
demands, Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and
Industry (VCCI) said at the Vietnam-Slovakia business get-together on October 26.
Economic structures of both countries could complement each other, Khuong said.
With flexible economic mechanism, Vietnam is a gateway for Slovakian goods to enter into
markets of other ASEAN countries and Asian nations as well. Meanwhile, Slovakia would be
an important partner and a gateway for Vietnamese commodities to penetrate in the European
Union, Khuong added.
Slovakian Ambassador to Vietnam Peter Svitek stressed great prospects for economic cooperation between the two countries. Direct contacts and negotiations are the best way for
boosting bilateral co-operation, he said.
Ambassador Peter Svitek expressed his hope that Slovakian firms would seek their partners
in Vietnam .
Two-way trade between Vietnam and Slovakia reached more than US$114.2 million in 2008.
Vietnam exported mainly electronic products and accessories, footwear, garment and textiles
worth US$109.8 million while importing cattle feed, material plastics and machines and spare
parts worth US$4.4 million.
http://www.nhandan.com.vn/english/business/271009/business_dkt.htm