There were delays in the transposition of legislation on technical standards, product safety and competition rules. Although Poland was continuing with the privatisation of industry, some sectors, in particular the steel industry, were experiencing a number of difficulties. The results for SMEs, however, were generally satisfactory and Poland had achieved a good level of conformity between its legislation and the Community acquis . The November 2000 Report indicates that Poland has achieved much in the way of creating an appropriate legal environment in which businesses can operate. This has been reflected in the flow of foreign direct investment and by the rapid development of the private sector.
Policies are usually well defined, but their implementation has been limited.
Polish industry is still not very competitive. Further efforts are required in terms of innovation and privatisation, and in adjusting Poland's regulatory environment to that of the Community. Privatisation of State-owned enterprises has played a very important role in the Polish economy by speeding up the restructuring process. Its aim is to speed up adjustment to structural change, encouraging an environment favourable to initiative, to the development of undertakings throughout the Community and to industrial cooperation, and to foster better exploitation of the industrial potential of innovation, research and technological development policies. In order to cope with competitive pressure and market forces within the Union, the industry of applicant countries needs to have achieved a certain level of competitiveness by the time of accession.