Emerging Europe and CIS Round-up

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Emerging Europe and CIS Round-up

Real estate in Poland; Russia, America and the WTO; an agenda for Hungary

Foreigners purchased over 3,000 apartments in Poland last year, three times more than the previous year . House prices rose between 5 and 30% in 2005, depending on location. Real-estate experts expect the boom, which began with Poland´s entry to the European Union, to continue, citing evidence that Spanish and Irish house prices were increasing 30% a year for several years after those countries joined the EU.

Russian economy minister German Gref said that only five or six issues are outstanding between Russia and the USA , concerning Russia´s entry to the WTO. Gref said that agriculture is the biggest problem, followed by tariffs; regulation of financial services, especially countering money laundering; and trade in the state-owned sector. Gref said that some of the issues are being discussed via video conferences and that most should be resolved by May this year. US Secretary of State Condoleeza Rice said that Washington is not officially not opposed to Russia entering WTO, and that remaining issues would be resolved shortly.

Centre-right Hungarian opposition party Fidesz outlined six measures that it will take immediately if it wins this month´s general election. The party´s nominee for economy minister, Gyorgy Matolcsy, set out the plan in an inteterview with business daily Vilaggazdasa:

First, to set up a committee to evaluate the budget.

Second, an independent fiscal council would be established.

Third, to prioritise the National Development Plan, the framework document for allocating the EU Structural and Cohesion Funds.

Fourth, to amend the country’s convergence programme in line with European Community requirements.

The last two steps are Fidesz´s key promises: to reduce employers’ social security contributions by 10% to 19%, and a legal amendment aimed to introduce qualified majority voting for important pieces of legislation

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