Well, dabbling in international politics is certainly thought-provoking and fun. However, the impact of the signing of the US-Poland missile shield agreement on my business has been minimal. So far, a client and my Mom have called to ask whether this agreement puts me in personal danger. Thanks for caring, but I’m not particularly worried.

In fact to show how blasé I am, I’m daring to talk about something else: the far more mundane, but relevant issue of doing business in Poland.

Starting September 20, 2008, Polish companies will be able to suspend operations. Yes, it may be hard to believe, but all this time Polish companies either were supposed to be industriously doing business (and filing all necessary reports and paying any necessary withholding or other taxes) or be in the process of liquidation.

Under the new change to the Law on Freedom of Economic Activity, a company that does not have any employees may suspend its operations for as little as one month or as much as 2 years. During suspension, a company may not actively conduct business (such as accepting new orders), but take necessary actions to protect its business base. The Law enumerates several of these, including settling up debts, sale of fixed assets, and responding to administrative audits.

The paperwork for suspension is simple. You would need to file with the business register your basic corporate information, the time period of the suspension, and a confirmation that you do not have any employees.

--Judi

Last week Poland and the United States reached agreement to place 10 interceptor missiles in Poland following nearly two years of negotiations. The timing of the agreement, following fast on the heals of the Russian incursion into Georgia, has many analysts questioning the underlying purpose of the missile shield.

The US administration has always maintained that the interceptors are defensive in nature, intended to block a potential attack from Iran and other “rogue” nations. And until last week so too had the Polish government, but recent pronouncements by President Kaczyński call into question these earlier claims. According to the Polish President, the missile defense treaty strengthens the US obligation to defend Poland in the event of an attack from presumably anywhere, not only based upon NATO membership, but also now in order to defend the missile interceptors themselves. 

The Russians have in turn charged that the missile defense shield is in fact intended to diminish its own nuclear deterrent. And most troubling have threatened to reposition some of their nuclear warheads to target Poland. 

Despite claims to the contrary, it would appear that at least for the Poles the Russian incursion into Georgia provided the missing motivation to conclude the drawn out negotiations with the US administration and sign the missile defense treaty. 

Only time will tell what will be the long term political impact of the missile defense shield on relations between Poland and Russia, not to mention between Russia and the EU as a whole. If the rhetoric on all sides doesn’t begin to tone down, we could very well find ourselves in a new arms race.

-- Paul B. Fogo