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IP: 168.103.126.* 10.01.03, 18:32
Marek Belka: "Russia will Never Enter into the European Union"

The former Polish Deputy Prime Minister and Minister of Finance, exclusive
for PRAVDA.Ru


His detractors and some sources in the Polish diplomatic world say he cannot
freely walk down Warsaw streets. Marek Belka introduced in the 1990's the
free market drastic reforms in the former communist Poland, which drove
unemployment up to 18%. After leaving public affairs in 2002, this
controversial man joined JP Morgan as Senior Advisor for Central and Eastern
Europe. PRAVDA.Ru could dialogue with him at the Polish Embassy in Buenos
Aires and he expressed his opinions about relations between Russia and the
European Union.

PRAVDA.Ru: Mr. Belka, Could you please tell us your opinion about a possible
integration of Russia into the EU? Do you foresee a short-term process or
should we expect a long time road?

M.Belka: "I don't think Russia will ever enter into the European Union. It's
too big for Europe. But I can imagine very easily special relations between
the EU and Russia and between both and NAFTA. But of course, the crucial
issue will be, again, agriculture. Russia and Ukraine may flood Europe with
food, as their production is very much cheaper than EU members are. Russia
will have special trade agreements with both EU and NAFTA, which will be more
convenient for Russian people."

PRAVDA.Ru: What's your opinion about the relation between Russia and
Multilateral Credit Agencies?

M.Belka: "Well, Russia fell into a trap with the IMF. They ask everybody to
privatize, privatize, liberalize and Russia did it. But I don't blame Russia
on mass privatization because there was no other way in which Russia could
ever privatize their state assets. I mean, they had to replace their
communist economy by oligarchy. I am sorry to say, but they prefer Lukoil's
tycoon to Brezhnev. No matter how you dislike the robbery of 5 million
dollars in a few years, it is better than having this total waste of
resources. I blame on Russians that they completely liberalize the financial
market without any consideration of institutions to control. There was no
serious bank supervision in Russia in the first years of transition. Well,
this is a clue to understand what the people at the IMF want. We (Poland)
never fell into a trap with them. We never mass-privatized; we did a gradual
building up of institutions."

Mr. Belka also referred to globalization: "It is a very dangerous game. It is
like a highway: you have to observe certain rules as you drive at great
speed. If you don't, then you are dead. In the financial world is the same:
you have to follow Anglo-American rules for doing businesses; if not, you are
out."

At the end, he expressed his satisfaction about the negotiations of Polish
authorities to become full member of the European Union by May 2004. "This is
a take it or leave it negotiation and it is not little thing. Eventually, EU
aims to political union. It's a mixture of political, economical and cultural
association, but we need a special treatment during the transition process."
For the former Deputy Prime Minister of Poland, this country may join the
Euro area by 2007: "This is the earliest date we can consider realistically",
he said.

Belka left Leszek Miller's center-left Government due to controversies over
2003 year's budget affecting the image of Poland's financial stability. He is
going to stay in Latin America with his family on holidays and will come back
to Warsaw by February to keep on monitoring the Central and Eastern European
finances for JP Morgan investments.

Hernan Etchaleco
PRAVDA.Ru
Argentina
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