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With local elections all over Poland scheduled for October 2002, newly elected mayors will find themselves facing difficult decisions in this area—legislation on water supply is not yet fully compliant with EU requirements and the privatization of water supply and treatment is often regarded suspiciously by consumers. In addition, local authorities often own considerable assets in the form of district heating companies or property for development, often in desirable central locations. Many assets owned by the State are managed for the State Treasury or other central agencies at voivodship (regional/ state province) level.

Poland may apply to nationals from EU member states measures equivalent to the measures applied by those countries with regard to Poland. Together with the negotiations, Poland’s progress in the fulfilment of the Copenhagen criteria has been constantly examined by the European Commission. The results are published in annual Regular Reports. Poland has always been perceived in these reports as a democratic country, respecting human rights and minorities. The state of the Polish economy has also been positively evaluated.

69 per cent at end July 2002), strict control of public borrowing and reductions in government spending including an overhaul of the much abused fund for disability pay. Payroll tax cuts to stimulate recruitment and further structural reform through accelerated privatization are also advocated in the report. Before evaluating the recent ‘anti-crisis package’ and the economic outlook, it is helpful to a better understanding of the Polish economy’s current difficulties to look back to the impressive progress made in the 1990s since the beginning of the transition process.