communist and poorer states which joined in 2004. It also showed how hard it can be to get unananimous decisions in the enlarged bloc. Austria's finance ministry said in a statement it was "very worried and irritated because the proposal has no negative effects on Poland whatsoever. On the contrary, it would have opened opportunities for Poland and for ... other states." Gilowska said Poland saw the plan too late and it ignored Warsaw's wishes, but stressed Warsaw did not plan to cause harm. "We do not plan, to the slightest degree, to block a compromise, or harm the interests of EU citizens, or block the operations of the companies that until now have benefited from (lower VAT rates)," Gilowska said. "We simply raise the question of the need to take into account our reservations. We cannot agree to a compromise in which our interests and comments are not taken into account in the slightest," she said. Austrian Chancellor Wolfgang Schuessel said he believed a compromise was possible but he needed more time before the Commission decides to act against the nine EU members that would be in breach of EU law on Wednesday if there is no deal. Commission spokeswoman for Maria Assimakopoulou said Tax Commissioner Laszlo Kovacs was ready to explain the compromise to Poland and would make it clear to the Commission if talks were advancing when he presents the case on Wednesday. Austrian Finance Minister Karl-Heinz Grasser said the 25-member bloc was in a "very serious situation" but softened his initial "take it or leave it" stance to say he would keep the talks going until a solution for all 25 members was found. Czech Deputy Finance Minister Tomas Prouza said that if a deal could not be found at the level of finance ministers the issue could be put before an EU leaders summit in mid-March. Gilowska said Poland wanted formal assurances from the EU executive that it would be explicitly allowed to keep low VAT rates on housing if it signs the deal. It also wants low VAT on building services which would have to rise from 2008. She said she did not expect a breakthrough before Wednesday. Asked if there would be more talks tonight, Gilowska said: "I don't think so, one should talk during daytime, not at night."
