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EU Challenges Government in Eureko-PZU Conflict

The European Commission has ruled that part of Polish insurance law, which states that the purchase of shares in insurance companies in Poland can threaten the nation's defense and security of the state, or public security, violates EU directives.

This law gave the government the right to block Eureko's investment in PZU. According to unofficial information, the government passed this law to specifically block Eureko's investment.

The Dutch company signed a privatization agreement four years ago, which stated that the Treasury would sell an additional 21% in PZU to Eureko by the end of 2001. All Treasury Ministers since then have failed to treat this agreement as binding.

The Insurance and Pension Funds Supervisory Commission (UKNUiFE) has turned to the Defense Ministry and the Internal Security Agency (ABW) to hear their opinions on the motion submitted by Eureko to increase its engagement in PZU to over 50%.

(WBJ 13.iv.04)

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