POLAND - Dutch insurer Eureko and the Polish treasury will form a working group to solve the  long-running and often bitter dispute dispute over the privatisation of PZU.

Yesterday's meeting was "constructive", a spokeswoman for the Dutch insurer confirmed to IPE. Eureko has been waiting for the privatisation of the Polish insurance giant promised in 1999.

"Both sides agreed that a compromise would be the best way forward," she said.

Representatives from Eureko and the Polish treasury will now form a working group to discuss the next steps, with a meeting to be held in two to three weeks, the spokeswoman said.

A date has not been fixed yet as the lawyers are currently compiling an agenda for the working group.

Eureko sued Poland over the broken privatisation promise and won several cases in the courts. Nevertheless the previous government, which lost the last elections in October, completely scrapped plans to sell its 51% held in the insurance giant PZU.
(see earlier IPE article: Outgoing gov't pulls PZU privatization)

The coalition between the pro-business Civic Platform and the centrist Polish People's Party under prime minister Donald Tusk now in government, had said since taking office it wanted to find a solution for the problem.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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