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NEWS
www.wbj.pl
MAY 9-15, 2011
Labor
Government forced to act over rising hooliganism
Germany opens labor market to Poles amid workers’ fears
Things got ugly at a recent Legia-Lech match in Bydgoszcz, leading officials to close stadiums to fans
German politicians have attempted to quell worries by promising vigilant checks on employers
Hooliganism is back on the agenda following a recent incident involving rampaging Polish soccer fans. Officials, including Prime Minister Donald Tusk himself, have called for stricter measures to be implemented ahead of Euro 2012. Last Tuesday’s Polish Cup Final match between Legia Warszawa and Lech Poznaƒ in Bydgoszcz ended in a riot, with police fighting hooligans who had ripped out seats, invaded the pitch and thrown metal objects and fire crackers. Police resorted to using water cannons to control the crowd, with the whole incident causing about z∏.40,000 in damages. However, it cost an estimated z∏.1 million to police the event. Officials from European soccer’s governing body, UEFA, were present at the match in Bydgoszcz and a statement was later released saying they were “aware of the incidents and will continue to work together with the various entities involved in security matters to develop and put in place all necessary measures.”
Violence marred the May Day marches in Germany, as workers’ fears that an influx of migrant labor from the east would lead to wage dumping and job losses spilled over into scuffles with police. Germany, along with Austria, was obliged by the European Union to open its labor market to the eight countries, including Poland, which joined the EU in 2004. German trade unions fear that up to 800,000 workers could flood the job market over the next two years, leading to wage levels being undercut and the welfare system swamped. Two prominent German politicians have attempted to ease workers’ worries by promising to shield the labor force from the impact of the changes. Labor Minister Ursula von der Leyen told the widely circulated Bild newspaper that sectors such as catering and heavy industry, where unions are particularly fearful of wage dumping, would be monitored closely. Checks, she said, would ensure the minimum wage was enforced and incomes were registered. The Finance Ministry, meanwhile, will employ an extra 150 workers this year to
PM Tusk weighs in In response to the riots, Prime Minister Donald Tusk has
SHUTTERSTOCK
Hooliganism
The latest incident caused z∏.40,000 in damage and cost z∏.1 million to police announced that police forces and organizers of mass events should increase cooperation, while hooligans banned from soccer matches should also be banned from other large-scale events. Mr Tusk said Poland had “many strict regulations” on stadium security and called on the authorities and match organizers to strictly adhere to them. “They should follow police guidance and close stadiums to fans if security cannot be assured during matches,” Mr Tusk said. In a bizarre twist, it was
revealed that the head of the police team responsible for fighting stadium hooliganism has been suspended for personally writing to Poland’s soccer authorities, asking them to issue a ticket for the cup final to a hooligan leader. The Legia Warszawa supporter, nicknamed “Staruch,” is currently subject to a stadium ban after he assaulted his team’s captain during a match. Nevertheless, after Legia won the game, players handed him the trophy to hold up in front of the crowds. Following Mr Tusk’s words,
it did not take long for authorities to act. On Thursday, officials from the Wielkopolskie (where Poznaƒ is located) and Mazowieckie (Warsaw) voivodships decided to close the stadiums of Lech and Legia to fans for their next league matches, which were set to take place last Friday. They justified the decision saying that police had informed them the two clubs couldn’t guarantee safety in their stadiums. Both Legia Warszawa and Lech Poznaƒ have said they will protest the decision. Remi Adekoya
help find illegal workers, Finance Minister Wolfgang Schaeuble told the newspaper. Ms von der Leyen also attempted to assuage fears that workers from the east would over-burden Germany’s welfare state system. “The vast majority will be young, educated and mobile workers,” she said. “They will contribute to boosting our country economically and fill part of the skilled labor shortage.” Other German politicians have also emphasized the benefits of migration from the east to the country’s economy. “Germany suffers from a shortage of skilled labor,” German Liberal Nadja Hirsch said, noting that by 2025 Germany’s active population will decrease 6.5 million to 38.1 million. “This shortage cannot be compensated by better education or training, the improved integration of women or the prolongation of working life alone. We do need employees from other countries as well and should have opened our labor market even earlier,” she added. The latest job-market figures to come out of Germany have provided a boost to those who say Germany’s export-led economy can handle the expected surge of labor. For the first time since 1992, seasonally adjusted unemployment in Germany fell below three million in April. Gareth Price
Criminal activity
Crime up in Poland and EU, as economic crisis bites Accountants, printers and lawyers are increasingly finding employment in criminal organizations Organized crime in Europe is thriving as a direct result of the global economic crisis. Difficult economic times and a lack of legitimate employment opportunities mean increasing numbers of people have become more likely to engage in criminal activity. Society, meanwhile, has become more tolerant towards criminal activity. These are among the main findings of the European Police Office’s (Europol) most recent report on organized crime in the European Union. “Organized crime is a multibillion euro business in Europe and it is growing in scale,” Rob Wainwright, director of
Europol, said in a statement. “The further expansion of internet and mobile technologies, the proliferation of illicit trafficking routes and methods as well as opportunities offered by the global economic crisis, have all contributed to the development of a more potent threat from organized crime.” The increase in criminal activity has resulted in part because criminal entrepreneurs can offer alternative employment opportunities to specialists in the shipping, printing, pharmaceutical, legal and financial sectors. Specific examples provided in the report include cases of previously legitimate printing firms involved in euro counterfeiting (which has increased by 31 percent in 2010-2011 compared to 2007-2008). The report says that increased crime, coupled with
greater social tolerance towards counterfeiting and labor exploitation, may lead to illicit activity accounting for a greater share of GDP in Europe.
Impact on GDP A 2010 analysis by economist Friedrich Schneider and global consulting firm A.T. Kearney estimated that Europe’s shadow economy was worth about €2.1 trillion. Its value varied from around 10 percent of GDP in some Western European countries to around 30 percent in Eastern Europe. The value of Poland’s shadow economy was estimated at 26 percent of national GDP. While not a major hub for organized crime in Europe, and despite the fact that it has weathered the global crisis relatively well, Poland was also found by Europol to be home to increased criminal activity.
In its report, the organization pointed to two large-scale criminal ventures common in Poland: the production of synthetic drugs and the counterfeiting of cigarettes. Cigarette smuggling is estimated to cost EU national budgets around €10 billion annually. Designer drugs (dopalacze) were also a hot issue in Poland last autumn, when selling points were subjected to a government crack-down, while tougher legislation regarding their use was also brought in. Europol’s report also helps shed light on what might be the result of a farwider movement in the international drug trade. Increased production of synthetic drugs created to bypass existing drug laws seem to be linked to higher prices for cocaine and heroin, as well as to a significant reduction in
ecstasy production. Organized criminals in Poland were also found to be active in beverage counterfeiting and “hit-and-run” property offenses in other
EU countries, while Vietnamese groups in Poland were found to be responsible for the large-scale domestic cultivation of cannabis. Alice Trudelle
Murky zones Shadow economy compared to official GDP, selected European countries, 2009 Country
GDP
Value of shadow economy
Austria
€274 billion
€23 billion
% of GDP 8%
Czech Republic
€137 billion
€23 billion
17%
Estonia
€14 billion
€4 billion
30%
France
€1.91 trillon
€221 billion
12%
Germany
€2.41 trillon
€352 billion
15%
Greece
€237 billion
€59 billion
25%
Italy
€1.52 trillion
€335 billion
22%
Latvia
€19 billion
€5 billion
27
Lithuania
€27 billion
€8 billion
30%
Poland
€310 billion
€80 billion
26%
Portugal
€168 billion
€33 billion
20%
Romania
€116 billion
€34 billion
29%
Spain
€1.05 trillion
€205 billion
20%
Switzerland
€355 billion
€29 billion
8%
UK
€1.56 trillion
€170 billion
11%
Source: Friedrich Schneider and A.T. Kearney, “The shadow economy in Europe, 2010”