What goes in Poland on 8th of June.
Nord Stream 2 under EU jurisdiction
The Nord Stream 2 project will have to be subject to the EU law – this is a position the European Commission adopted today. The Polish government has stated numerous times that the project is against Poland and against the Baltic States.
„We cannot let this project be completed. Germany will receive additional dozens of bcm of gas via Nord Stream 2. This means they will have in total about 110 bcm of gas. Thus, we will have to deal with a real monopoly, which will be bad for Poland as well as our neighbors,” said Łukasz Kroplewski, PGNiG’s Vice-President of the Management Board responsible for Development.
Denmark and Sweden also support blocking the project. Germany stands to win the most out of Nord Stream 2. Germany and Russia hit Poland similarly with the OPAL gas pipeline and the EC helped them do it.
„In this case Russians dominated the booking and reserving of gas. Actually, it is a paradox that in the end Gazprom Export became an intervening party supporting the EC,” pointed Kroplewski.
Last year, the EC allowed to increase OPAL transmission capacity. After Poland intervened, the EU Court of Justice suspended the decision, but did not repeal it. EU officials are making Europe addicted to Russian gas. „Nord Stream, OPAL and now Nord Stream 2 – this kind of leverage of the Russian concern is also a price leverage,” explains Remigiusz Nowakowski, energy market expert. In response to Russia’s actions, Polish and Danish gas transmission system operators started the open season procedure for the Baltic Pipe project, which will connect Poland, Denmark and Norway.
Baltic Pipie is getting hotter
„The project that will connect Poland with gas deposits in the Norwegian shelf is getting hotter,” promised Michał Kurtyka, Energy Vice-Minister.
On Tuesday the Polish and Danish gas transmission system operators – Gaz-Sytem and Energinet, started the open season procedure for the Baltic Pipe – announced Energinet on its portal.
Thus, the operators have invited interested parties to inform them about the expected demand for the gas pipeline’s capacity. The pipe will connect three states – Poland, Norway and Denmark.
Moments after the information was released, the Vice-President of the Management Board responsible for Trade at the Polish state-owned gas company PGNiG, Maciej Woźniak announced the company was planning to take part in the open season procedure and apply for capacity in the pipeline.
Sunday shopping a matter of compromise
Vice-Prime Minister Mateusz Morawiecki stated on Wednesday that he liked the fact that businessmen and trade union members are in talks and are looking for a compromise on Sunday shopping. In his opinion it would be better to limit the opening time of the stores on Sunday, rather than close them altogether.
„I like it that both parties sat at the table and are trying to come up with a compromise solution, which would be, e.g. limiting the working time on Sunday until 1-2 pm,” said the Vice-Prime Minister. „This is a very interesting proposition,” he added.
A bill authored by the Committee of Legislative Initiative, which includes, among others, the „Solidarność” trade union; social, catholic, employee and employer organizations, proposed a ban on Sunday trade in the majority of retail establishments, with some exceptions. Those would apply to Sundays before holidays, as well as shops owned by individual businessmen (except for franchisers and agents), petrol stations (with some limits), souvenir shops, and bakeries located near factories that sell their own products until 1 pm.
Improved forecast
The OECD increased Poland’s GDP growth forecast in 2017 from 3.2%, which was included in a November prognosis, to 3.6%. At the same time, the OECD stated that in 2018 the growth will be at 3.1%. „A moderate increase in domestic demand should support export growth and retain the deficit of the current accounts at the existing level. Unemployment should drop and, thus inflation will increase (…) At the beginning of 2018 the National Bank of Poland should gradually start to increase interest rates, because the inflation will reach its peak, and the economic downturn will slow down,” said the memo.
According to OECD, the general government sector deficit in Poland will reach 3% in 2018.