Warsaw Insight #4 - key policy developments in Poland - July 2014

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Monthly summary of key policy developments in Poland (for June/July 2014)

The "tape scandal" resulted in no changes in the government (yet), but the support for Donald Tusk's government dropped. The main opposition party, Jaroslaw Kaczynski's PiS (Law and Justice) leads polls with 35% of support. PO (ruling Civic Platform) has only 23%. SLD (the Left) has 8% and New Right - 5%. The second coalition party, PSL, has only 4% of support - therefore wouldn't make it to the parliament if that is the result of elections.
The second result of the "tape scandal" is a consolidation of the right part of the political scene; Law and Justice finally signed the agreement with Zbigniew Ziobro's Solidarna Polska and Jaroslaw Gowin's Polska Razem. While not changing anything in polls, this move prevents the division of votes in the November local election between very similar parties. Zbigniew Ziobro was in past the very popular right-wing politician, who left PiS few years ago. Jaroslaw Gowin is the conservative liberal, former member of Civic Platform and former minister of justice in Donald Tusk's government. His economical views are completely different to those presented by Law and Justice.

The last session of parliament before summer holidays begins today. Therefore the next issue of Warsaw Insight will be published in two months. In case of important events in between, we will distribute the "alert" with a summary and analysis of the change.

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Warsaw Insight #4 - key policy developments in Poland - July 2014

  1. 1. Welcome to the newest edition of MSLGROUP’s Warsaw Insight. We present this to you via the con- cept that additional knowledge and insight about the legislative, regulatory, and leadership changes in the Polish government and European Union is worth having. 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. For MSLGROUP, understanding the markets within which we operate is a guiding principle. There- fore, we believe that our Warsaw Insight will pro- vide you with a valuable source of knowledge, information, and news. We present the Warsaw Insight to you with hope that it meets your expec- tations. Due to parliamentary vacations, the next edition of Warsaw Insight will be released in Autumn. If you would like additional information regarding our services, we would be more than happy to talk to you. MSLGROUP Poland, Public Affairs Team The “tape-recording scandal” (the weekly, Wprost, published secretly recorded, private con- versations between several top politicians and influencers connected to the ruling party) is still one of main political topics in Poland. Since the release of the first recordings, the government successfully passed a non-confidence vote in par- liament and several attempts to dismiss the min- isters featured in the recordings. The main opposition party (Kaczynski’s Law and Justice - PiS) attempted to introduce a “tech- nical government,” but decided not to form a coalition with other opposition parties, losing the vote completely. PiS also tried to unite the right wing of Polish political scene and con- ducted series of meetings with other parties’ leaders, but the final “Right Unity Congress” was not a success. None of right wing parties’ leaders were present. In attendance were only Jacek Kurski, a previously influential member of PiS who decided to leave the party several years ago and now seems to be returning, and former MP of the ruling Civic Platform, Andrzej Smirnow, who left his party few weeks ago. Additionally, Piotr Duda, the leader of Solidarity trade union, was also present, confirming his informal alliance with Law and Justice. The other two small right-wing parties (Solidarna Polska and Polska Razem) united in parliament, creating the small parliamentary club “Just Po- land”. They do not want to formally join Law and Justice or enter the formal coalition yet, as in past this has led to the disappearance our ab- sorption of smaller coalition parties. After the summer holidays, we can expect con- stant debates on the form and source rather than the content of the recordings and, possibly, the change of the position of minister of interior. The last session of parliament is planned for 22-25 of July. Lukasz Jachowicz, head of Public Affairs, MSL- GROUP Poland lukasz.jachowicz@mslgroup.com @ljachowicz
  2. 2. ul. Domaniewska 42 02-672 Warszawa T: +48 22 278 38 00 F: +48 22 278 38 74 Former Deputy Treasury Minister Paweł Tambor- ski was appointed by the General Meeting of the Stock Exchange to the position of CEO. As of today, Tamborski’s candidacy has yet to be con- firmed by the Financial Supervision Commission. Votes of the Stock Exchange shareholders: 32.2 million voted in favor, 3.3 million were against and 0.64 million abstained. From November 2010 to January 2012, Tamborski served as the head of investment banking at Wood & Compa- ny. From 2008-2010, he worked as a managing director at Unicredit CAIB Securities in London. Tamborski had been undersecretary of state treasury since January, 2012. June 27 President Bronislaw Komorowski nominated Małgorzata Omilanowska to the position of Min- ister of Culture and National Heritage. June 17 “Energy and low carbon economy, what to do to be profitable.” The meeting was held on 26 June 2014 at the Ministry of Economy. June 26 “The development of renewable energy sources can be one of the components of the energy security of the European Union” - said Deputy Minister Jerzy Pietrewicz at the opening of the conference entitled. “Biogas: A Polish opportu- nity for agriculture, the environment and the economy.” The meeting was held on 18 June 2014 at the Ministry of Economy. June 18 The aims and objectives of the Polish Energy Policy until 2050 were the main topics of the meeting of the Committee on Strategic Economic Thought. The meeting opened by Deputy Prime Minister Ja- nusz Piechociński took place on 3 July 2014, the Ministry of Economy. July 4 “Climate policy objectives cannot be in conflict with the objectives of other EU policies, including energy, industrial and commercial policies” - said Deputy Minister Jerzy Pietrewicz during the tenth edition of the International Conference NEUF 2014 Dariusz Bogdan, who recently resigned from the post of Undersecretary of State in the Ministry of Economy will receive a position in Gaz-System. Well-informed sources claim that Arkadiusz Bąk, former director of Minister Piechociński’s politi- cal cabinet, will be Bogdan’s successor. July 7
  3. 3. ul. Domaniewska 42 02-672 Warszawa T: +48 22 278 38 00 F: +48 22 278 38 74 At the moment, the EU continues to work on new legislation regarding roaming charges. The essence of the regulation is to bring even greater benefits to users by introducing and consolidating the mod- el of offers that provide roam-like-at-home i.e. a model in which roaming calls are the same price as domestic calls). June 26 Minister Trzaskowski inaugurated the working of the Council for Digitization. The Minister of Ad- ministration and Digitization invited to participate in the Council: a lawyer and expert on the devel- opment of the Internet, an activist for freedom and human rights, recognized experts in the fields of computerization, media and new technologies, network security, privacy, and telecommunica- tions law. June 17 Regulation of the Minister of Administration and Digitization on the rules for submission and consid- eration of complaints on telecommunications ser- vices entered into force on 8 of June. The amend- ments concerns the choice of form of contact with the telephone company and decreasing the time frame for e-mail based replies. June 8 “Opening of this new factory enables the devel- opment and production of weapons with superior design parameters and quality, it also enables us to increase the range of products and services” - said Beata Oczkowicz Undersecretary of State in the Ministry of Defense, during the grand open- ing of the new headquarters of Weapons Factory “Łucznik” in Radom. July 1 During Tuesday’s meeting, the Council of Ministers adopted guidelines for the draft law amending the Aviation Law, submitted by the Minister of National Defence. The proposed change allows civil trans- port aircraft, both Polish and foreign, to land at Polish military airports for the purpose of carrying out tasks of the armed forces of Poland. June 17 Polish - Estonian security consultations with rep- resentatives of the ministries of defense and for- eign ministers of the two countries were held at the Estonian Air Base Ämari. June 16 Poland has passed a new law related to public pro- curement and offset. The main point of this law is the shift in focus of the reciprocal investments known as offset. Rather than “benefiting the economy of Poland” as it was previously define, offset should “contribute to the national security of Poland.” Such a shift is part of a broader mod- ernization of Poland’s military and brings Polish law more in line with the European Union. July 7th Finance Minister Mateusz Szczurek took part in the meeting of the ECOFIN Council, which took place on July 8th, in Brussels. It was the first meeting of finance ministers of the EU Member States since the start of Italy’s EU presidency. During the meet- ing, the Italian Minister of Finance presented the key issues that the Council will deal with through the second half of the year. Topics presented in- cluded: a stronger banking union, a fiscal strategy focused on growth and social stability and struc- tural reforms conducive to growth and innovation. July 8 Since July this year significant reductions in the cost of accepting cards by retail and service points can be expected. This is related to amendment to the Act of 19 August 2011 on payment services, which significantly reduces the amount of one of the main charges incurred by retail and service points from accepting payment cards (interchange fee). This has been achieved through the involve- ment of Polish entrepreneurs gathered around the Foundation for the Development of non-cash Pay- ments (Fundacja Rozwoju Obrotu Bezgotówkow- ego) and appreciation of the importance of the problem by the legislature. As a result, Poland is a role model for developing robust anti-trust prac- tices in local markets from which derive other EU countries such as Spain. July 1
  4. 4. “Ensuring the competitiveness of the EU, support- ing growth and employment and addressing the growing backlog of reimbursement of expenses” - are, according to European Commissioner for Fi- nancial Programming and Budget Janusz Lewand- owski, the key elements of the draft EU budget for next year. EU finance ministers took note of information from the European Commission on the draft EU budget for 2015, at the ECOFIN Council meeting June 20 in Luxembourg. June 26 The next session of Sejm (Lower House of Parliament) will be held on the 24th & 25th of July, 2014. The next session of Senate will be held on the 23rd 24th of July. August is the month of parliamentary vacations in Poland. 24 23 THU WED
  5. 5. MSLGROUP is one of 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 lukasz.jachowicz@mslgroup.com. CONTACT: CEO Corporate & Financial Communications Paweł Tomczuk Tel. +48 600 489 609 e: pawel.tomczuk@mslgroup.com Head of Public Affairs Łukasz Jachowicz Tel. +48 601 416 560 e: lukasz.jachowicz@mslgroup.com Governmental Affairs Practice Leader Małgorzata Dworzynska Tel. +48 605 296 457 e: malgorzata.dworzynska@mslgroup.com Associate Public Affairs Jakub Olek Tel. +48 606 319 500 e: jakub.olek@mslgroup.com

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