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DECEMBER 13-DECEMBER 19, 2007<br />

Schengen creates panic<br />

among visa-less Americans<br />

cc:sa:Diliff<br />

B U S I N E S S The <strong>Krakow</strong> <strong>Post</strong> 7<br />

European<br />

Commission says<br />

Polish steelmaker<br />

misused state aid<br />

agence france-presse<br />

The European Commission said early this<br />

week that Polish steel maker Huta Warszawa<br />

misused state aid for restructuring in 2003,<br />

before it was bought by Arcelor.<br />

Under a restructuring <strong>of</strong> the Polish steel<br />

industry, the company received around 50<br />

million euros ($73.5 mln) <strong>of</strong> state aid, mostly<br />

in the form <strong>of</strong> a guarantee for a loan to<br />

fund investments in 2003 and 2004.<br />

However, the Commission found that<br />

around 30 mln euro ($44 mln) <strong>of</strong> the loan<br />

was used in 2004 to pay <strong>of</strong>f several old<br />

debts, which was not part <strong>of</strong> the restructuring<br />

plan.<br />

The Commission calculated that the loan<br />

guarantee gave the company an interest subsidy<br />

worth two million euro, which it has<br />

agreed to pay back.<br />

The company was taken over in 2005 by<br />

steel group Arcelor, which itself has since<br />

been bought by Mittal Steel to form the<br />

world’s biggest steelmaker.<br />

Huta Warszawa is one <strong>of</strong> the bigger producers<br />

<strong>of</strong> steel in Poland and has the capacity<br />

to churn out nearly one million tons per<br />

annum.<br />

Czech<br />

gov’t<br />

cancels<br />

tank<br />

contract<br />

after<br />

series <strong>of</strong><br />

problems<br />

Downtown Prague.<br />

agence france-presse<br />

More European borders come down this<br />

month and there is panic among Prague’s<br />

large U.S. community with a last minute<br />

rush to get visas in order or quit the country.<br />

Eric Snow, a 32-year-old from San Diego,<br />

California, went through a six-month<br />

bureaucratic nightmare when he decided to<br />

upgrade his visa. Corry O’Brien, a 53-year<br />

old retired government worker, who came<br />

to Prague with thoughts <strong>of</strong> a long stay is<br />

cutting it short rather than risk becoming an<br />

illegal alien.<br />

Traditionally, U.S. citizens with a 90-day<br />

tourist visa took a three hour train ride from<br />

Prague to the Czech Consulate in Dresden,<br />

Germany, to get an extension there. Many<br />

used the system to live and work undeclared<br />

as permanent tourists.<br />

The EU’s so-called Schengen zone has<br />

<strong>change</strong>d all that.<br />

The zone, where passports are not<br />

checked once a traveler is inside, will be<br />

extended on Dec. 21 to the Czech Republic,<br />

Estonia, Hungary, Latvia, Lithuania, Malta,<br />

Poland, Slovakia, and Slovenia.<br />

But it means that Americans and other<br />

expats in Prague will have to go outside the<br />

zone to get a new visa, and that means going<br />

to the Ukraine, Switzerland or Romania<br />

as some <strong>of</strong> the nearest destinations.<br />

And tourist visas now only allow residence<br />

within Schengen countries for three<br />

months in any six-month period.<br />

Snow feared he would have to endure a<br />

90-day exile outside the Czech Republic<br />

“somewhere in the East” as he wrestled<br />

with getting his new visa.<br />

“I was afraid I might have to leave the<br />

country, or at least go away for a time. I<br />

did not want that, I have made a life here,”<br />

exclaimed the English language teacher.<br />

“This Schengen thing came out <strong>of</strong> the<br />

blue,” exclaimed O’Brien. “I thought I<br />

could go somewhere for the visa extension<br />

but I did not know I could not come back<br />

for 90 days,” added the grey-haired collecter<br />

<strong>of</strong> “cultural experience” whose family is<br />

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<strong>of</strong> Czech-Irish descent.<br />

“I did not realize you would have to go<br />

to Switzerland or some non-EU country. I<br />

can hardly afford to stay here because the<br />

dollar has dropped so much,” she added,<br />

referring to the halving in the dollar-koruna<br />

ex<strong>change</strong> rate since 2000.<br />

“To me its a shame I feel I have to go, but<br />

I will not break the rules,” she concluded.<br />

Snow feared he would <strong>face</strong> the Schengen<br />

sanctions if he did not get his new visa before<br />

the old one expired.<br />

At one stage in his personal paper chase<br />

and trial, Snow witnessed a Czech consulate<br />

and the foreign police squabbling over<br />

who should deal with his papers.<br />

That followed a trip to the Dresden consulate<br />

that he later found he did not need<br />

to make. Like most other foreigners trying<br />

to unscramble Schengen, Snow tried at first<br />

to work out himself what to do by searching<br />

an expats’ web site. “It was completely<br />

wrong,” Snow mused.<br />

He brought his mediocre knowledge <strong>of</strong><br />

the Czech language to bear on <strong>of</strong>ficial information<br />

sources, but found them lacking and<br />

eventually hired an “agent” to circumvent<br />

the administrative maze. His first agent got<br />

him nowhere but a second one got him to<br />

his grail, albeit around 5,000 koruna (190<br />

euro/$279) poorer. “I would never try to do<br />

this on my own. Get an agent is all I can<br />

say,” he concluded.<br />

The U.S. Embassy in Prague estimates<br />

there are 5,000 Americans in the Czech<br />

capital but an unknown number <strong>of</strong> the<br />

400,000-500,000 U.S. tourists each year<br />

stay behind. According to Snow many<br />

Americans are taking their children out <strong>of</strong><br />

Prague’s English language schools because<br />

<strong>of</strong> Schengen.<br />

But visa-enabling agents are enjoying a<br />

boom.<br />

“We have got about half again as much<br />

interest as we did at this time last year,”<br />

said Nora Vinduskova in her small central<br />

Prague <strong>of</strong>fice, adding that Australians,<br />

Canadians, Japanese and Thais as well as<br />

Americans are her main clients.<br />

agence france-presse<br />

The European Court <strong>of</strong> Justice late last<br />

week upheld the right <strong>of</strong> EU companies to<br />

shift activities to another member state, dealing<br />

a blow to trade unions seeking to prevent<br />

so-called social dumping.<br />

However in the same ruling, regarding<br />

a Finnish shipping company’s move to sail<br />

under the Estonian flag, the court also ruled<br />

that unions were allowed to take collective<br />

action to persuade a company not to decamp<br />

to a cheaper location and workforce.<br />

That right, the court in Luxembourg<br />

ruled, only applies where jobs or employment<br />

conditions are “jeopardised or under<br />

serious threat.”<br />

The general ruling resulted from a particular<br />

case involving the London-based International<br />

Transport Workers Federation (ITF)<br />

and the Finnish shipping company.<br />

The federation was unhappy that the Finnish<br />

shipping company, Viking, in a cost-cutting<br />

move, sought in October 2003 to staff<br />

one <strong>of</strong> its passenger ferries,<br />

the loss-making Rosella,<br />

with a cheaper Estonian crew<br />

and sail it under the Estonian<br />

HOTEL EDEN<br />

announces our annual festive<br />

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NEW YEAR’S PARTIES.<br />

We also provide EXCEPTIONAL<br />

CATERING SERVICES for your<br />

own holiday parties or functions<br />

throughout the year.<br />

EU court<br />

defends right<br />

for firms to<br />

move abroad<br />

to save costs<br />

flag for its Tallinn-Helsinki trips.<br />

The ITF sent a circular to all its affiliates<br />

asking them not to deal with the Viking Line,<br />

with the threat <strong>of</strong> sanctions attached.<br />

This had the effect <strong>of</strong> preventing Estonian<br />

trade unions from entering into negotiations<br />

with Viking. After Estonia joined the EU in<br />

2004, Viking brought the case to the British<br />

courts seeking to force the ITF to withdraw<br />

its circular and asking the court to order the<br />

Finnish Seamen’s Union, an ITF affiliate, to<br />

honour its right to reflag the ferry.<br />

Britain’s Court <strong>of</strong> Appeal referred the<br />

case to the European Court <strong>of</strong> Justice which<br />

ruled Tuesday that the union action amounted<br />

to “restrictions on the freedom <strong>of</strong> establishment<br />

... (which) cannot be objectively<br />

justified.<br />

“Such a restriction can be accepted only<br />

if it pursues a legitimate aim such as the protection<br />

<strong>of</strong> workers,” the court said, throwing<br />

it back to the British courts to decide whether<br />

the collective action went “beyond what<br />

was necessary.”<br />

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2007<br />

agence france-presse<br />

The Czech government said late last<br />

week it had canceled a 798-mln-euro<br />

($1.17-bln) light tank contract with<br />

Austria’s Steyr-Daimler-Puch.<br />

“The contract has not been properly<br />

fulfilled and within the timeframe<br />

agreed” and accordingly it was cancelled<br />

on Monday, Defense Minister<br />

Vlasta Parkanova told a news conference.<br />

The contract, one <strong>of</strong> the largest<br />

ever in Czech military history, was<br />

for the supply <strong>of</strong> 199 Panur tanks.<br />

The tanks already built had not<br />

passed control tests and “there were a<br />

whole series <strong>of</strong> problems,” Parkanova<br />

said, without giving further details.<br />

“The terms <strong>of</strong> the contract are<br />

confidential,” she said, while adding<br />

that the delivery <strong>of</strong> the first 17 tanks<br />

in November as agreed had not happened.<br />

“Our decision <strong>may</strong> seem radical at<br />

first but we are convinced it is right.<br />

Any concession [on the terms] on our<br />

part would have only led to others,”<br />

the minister said.<br />

The local <strong>of</strong>fice <strong>of</strong> Steyr-Daimler-<br />

Puch declined to comment, wanting<br />

first to study the statement.

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