Press cuttings - A Question of Balance
06.03.2001
Finding the right balance between the fiscal requirements of civil society and those of the state is a challenge throughout the New Europe. Recently this was dramatically illustrated by a significant court ruling in Poland that has tipped the scales of justice against the country's foundations and civil society organisations, who now have to grapple with the consequences and formulate an effective response. The ruling is an important development in a major country of Central and Eastern Europe (CEE), a country that for over a decade has been at the forefront of transformation, a model for the region, and a key candidate for European Union (EU) accession.
Three articles in this issue of SEAL deal with the Polish court decision, which directly concerns the Polish Science Foundation, an EFC member, but has wider implications as it affects the financial sustainability of many organisations. The first article provides an overview of the case as well as the likely consequences and possible responses; the second looks at the broader political, legal, and social context of the ruling; and the third discusses a working group formed in response to the decision.
The Polish case clearly points to the need for greater dialogue and partnership between the foundation community and governments at all levels and for greater understanding of the unique role of foundations in building civil society - which lies in their financial independence and continuity. The need for better understanding is apparent not just in CEE but also in advanced EU states, as we see in a report on Sweden that echoes the Polish situation in some respects.
In addition to the Polish and Swedish cases, this issue of SEAL has a range of interesting reports on various topics, including: a regional approach to Third Sector development in the Baltics, strategies for change in Belarus, and taxation of cross-border activities. On the legal reform front we have reports on a new law in Bulgaria, a draft law in Ukraine, and a proposed model law in Yugoslavia. Also, it should be noted that Russia features prominently in this edition of SEAL - in October 2000 the first national NGO conference was held in Russia, a crucial event for that nation's Third Sector. As 2001 is the International Year of Volunteers, SEAL marks the start of the year with an article on volunteering in Russia.
A major legal reform effort has been launched in Poland to clarify or amend the tax laws pertaining to investments. Polish EFC members will be playing a leading role in this campaign. The EFC is taking a strong interest in the Polish situation given its importance for the independent donor community. SEAL will be monitoring the progress of the reform initiative as well as further developments in the case of the Polish Science Foundation. The court ruling should serve as a warning signal and prompt heightened awareness of ambiguities and deficiencies in tax laws affecting foundations across Europe.
In his Last Temptation of Christ, Kazantzakis writes that time is not measured in cubits, but in heartbeats. The hearts of independent donors in Europe should certainly be beating faster following the Nice European Council Summit agreement on 8 December 2000 concerning the European Company Statute. The agreement removes the key political block to creating the European Association Statute. Led by the European Union Committee and its Legal Task Force, Members are currently taking a fresh look at the implication of the Council agreement and plan to develop a draft position paper for discussion by the wider membership at the Annual General Assembly and Conference on 20-23 May 2001 in Stockholm, Sweden. The SEAL team promises to keep you updated on this work and invites input from Members.
Maciej W. Grabski
President, Foundation for Polish Science