29 March 2006 - Poland's plans to privatize its energy assets appear to have taken a back seat as the country's government vowed to implement its new energy strategy immediately.

Plans approved earlier this week have focussed the government's main interest on consolidating several power generation companies into one that would trade under the name Polska Grupa Energetyczna (Polish Energy Group). Parts of the country's national electricity grid are also to be included under the new setup.

The country's Prime Minister said that the move was designed to create a strong entity that would be able to compete effectively within Central and Eastern Europe.

Although privatization of power assets is still believed to be on the government's agenda, there is now uncertainty over the time frame it will proceed with any asset sell-off programme.

The EU's leading economic official, the monetary affairs commissioner, Joaquin Almunia, criticized Poland along with France, Italy and Spain recently for putting Europe's economy at risk through their market protectionism.