Row over taxes hits Euro 2012 preparations

May 3 – A new row that could threaten Euro 2012 has erupted after Poland’s Ministry of Finance said that it wants to renegotiate its agreement with UEFA exempting them from taxes during the tournament.

UEFA has responded by warning Poland that it could move the event to another venue, possibly Germany, if the guarantee is not honoured.

Poland’s Government had made the promise to absorb the tax during its successful bid to host the tournament jointly with Ukraine.

UEFA has already threatened both Poland and Ukraine with being replaced as hosts because of fears over the slow pace of constructing stadiums and infrastructure.

Poland’s Sports Minister Adam Giersz has claimed that as a compromise UEFA should help pay for the costs of setting-up fan zones around the country during Euro 2012.

The two parties are due to hold talks this Thursday (May 6) over the issue.

Giersz said: ”We will negotiate with UEFA, not only the matter of taxes, but also the marketing guidelines, including who will fund the fan parks – the cities or UEFA.”

But he admitted that there position is weak because Ukraine has already promised to underwrite the costs.

Giersz said: ”The Ukrainian cities have agreed to pay for everything, which puts us in a difficult position during the negotiations.”

A spokesman for the Ministry of Finance claimed the negotiations will not affect the staging of Euro 2012.

He said: ”The Ministry of Finance confirms and sustains readiness to meet in full the guarantee, granted by the Polish Government in connection with the organisation of Euro 2012.

“The talks on the implementation of the Government guarantee is the next step resulting from the timing of preparation and does not pose a risk to the organisation of Euro 2012 in Poland.”