Polish Market No.3 (282)/2019

PU B LISHED SIncE 199 6 No. 3 (282) /2019 :: www.polishmarket.com.pl

........................

promoting regions

........................

new solidarity transport Hub

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20 years in naTO

........................

“tHe future begins

today…

Lubuskie wants to be a green land of modern technologies.”

elżbieta anna polak Marshal, lubuskie Province

Lubuskie - tHe region of tHe future

ONTENT

6 FROM THE PRESIDENT’S PRESS OFFICE 7 FROM THE GOVERNMENT INFORMATION CENTRE

POLAND - THE CENTENARY OF REGAINING INDEPENDENCE

8 ART AND AIR TRAVEL – MACIEJ PROLIŃSKI 9 A JAZZ TAKE ON MONIUSZKO 10 WARTIME RESISTANCE COURIER DEFENCE SECTOR

12 CELEBRATING THE 20TH ANNIVERSARY OF NATO ENTRY

14 20 YEARS OF POLAND IN NATO -

MAREK ZIÓŁKOWSKI, PERMANENT REPRESENTATIVE OF POLAND TO THE NORTH ATLANTIC COUNCIL

16 SPECIALISTS WORTH MILLIONS OF

DOLLARS - LT COL KRZYSZTOF PRZEPIÓRKA, ONE OF THE FOUNDERS OF THE GROM UNIT

18 THE ARMY SHOULD BE OUR

AMBASSADOR - MAREK GROCHOWSKI, THE PRESIDENT, ZAKŁADY MECHANICZNE BUMAR-ŁABĘDY S.A.

20 RAMBO'S SOUL - PROF. KRZYSZTOF KWIATKOWSKI, AN ORTHOPAEDIST

CLEAN ENERGY

22 ECOLOGY, NOT SELFISH INTERESTS -

HENRYK KOWALCZYK, MINISTER OF THE ENVIRONMENT

24 THE ENVIRONMENT COMES FIRST -

ARTUR MICHALSKI, DEPUTY PRESIDENT, THE NATIONAL FUND FOR ENVIRONMENTAL PROTECTION AND WATER MANAGEMENT (NFOŚIGW)

26 POLLUTANT EMISSIONS FROM THE POWER SECTOR AND ITS CLEAN AIR MEASURES REPORT 2018

29 ARE WE IN FOR AN OVERHAUL? 30 ENERGA’S ENERGY MIX – JAN DEMPC 32 TO BE GREEN - TOMASZ BUJAK, VICE PRESIDENT, THE G-ENERGY BOARD

INDUSTRY

34 BUSINESS GRASPS HOW CRUCIAL HEALTH AND SAFETY IS

36 KGHM MINERS ARE SAFER REGIONS

41 KRAKÓW - MAGICAL PLACE - JACEK MAJCHROWSKI, MAYOR OF KRAKÓW

42 AIM HIGHER - ELŻBIETA ANNA POLAK, MARSHAL OF THE LUBUSKIE PROVINCE

44 LUBUSKIE WORTH YOUR WHILE 46 MAZOVIA TOWARD SUSTAINABLE

DEVELOPMENT - ZDZISŁAW SIPIERA, MAZOWIECKIE PROVINCE GOVERNOR

48 MAZOVIA IS NOT JUST WARSAW 50 A GREAT PLACE TO GIVE BIRTH -

KRZYSZTOF RYMUZA, PRUSZKÓW COUNTY HEAD

52 WORLD HEARING CENTER A SHOWCASE FOR POLAND IN THE WORLD

54 A PARTNER, NOT AN ENEMY - GRZEGORZ BENEDYKCIŃSKI, MAYOR OF THE TOWN OF GRODZISK MAZOWIECKI

56 UNIEJÓW IDEAL CONFERENCE AND

TRAINING VENUE IN CENTRAL POLAND

EDITORIAL

F

or economic and business magazines, it is back to run-of-the-mill reporting, following the usual excitement that surrounds end-ofthe-year rankings and forecasts for the new year. Now is the time to analyse incoming news and see whether any patterns emerge that are worth writing about.

So far, there have been few surprises. US-China trade relations, which to many are a source of major concern, do not seem to have reached the stage of an all-out war. Following an initial exchange of blows by raising tariffs, both sides seem to have taken a step back to negotiate and seek solutions. Donald Trump’s assurances that progress has been made in bilateral talks appear to have calmed down world markets, which are doubly reassured by reports of a moderate rate of US economic slowdown. US manufacturing and services sectors keep growing, which makes recession a more distant prospect. In China, too, in the face of the lowest GDP growth rate in 28 years, the authorities have decided to stimulate consumption growth and inject more funding into infrastructure projects, which is expected to do the trick. So are doomsayers correct in believing that Europe may be heading for the worst slowdown? The European Central Bank has lowered the Eurozone growth rate forecast for end-2019 from 1.7 to 1.1%. It has rated the risk of recession as very low. It thus decided to keep interest rates unchanged and to maintain favourable rates for loans for consumers and SMEs. The German government has lowered its GDP growth projection from 1.8 to 1%, while the German PMI investor sentiment index dropped to the lowest point in three years. But is that the whole picture? Europe’s largest economy and the world’s number one exporter keeps breaking new records. In 2018, German exports amounted to EUR 1.318 trillion, and the country’s foreign trade surplus stood at nearly EUR 250 billion. Other European markets have not been doing too badly, either.

Are there any grounds for concern, you may ask. Well, investors appear cautious, fearing the consequences of the worsening relations between the US and China on the one hand, and the US and EU on the other (e.g. vis a vis Iran). Brexit, too, does nothing to allay fears. So far there has not been too much of a fallout, which spells less trouble for the Polish economy than originally expected. Analysts feared that Poland was bound to suffer from a European slowdown because of its close links with the rest of the single market.

But in reality, things seem pretty stable, and instability could creep in from outside Europe, rather from within. The Polish economy has been suffering the most from fluctuating oil prices and growing trade deficits with Russia and China.

This is not to say, though, that Poland is forced to drift along, unable to resist world trends. Last year’s COP-24 climate change conference in Katowice, and the need for state intervention in mechanisms which set unacceptably high electricity price levels, have convinced sceptics of the urgent need to overhaul Poland’s energy policy. It is clear that it must look far ahead into the future and go beyond the narrowly conceived security of energy supplies. It must also take in all the environmental considerations in line with the Paris agreement which Poland signed. It seems like a tall order because, in many cases, contradictory public interests must be reconciled. It is even trickier, considering that elections to the European Parliament and the Polish Parliament are scheduled later this year, which means that the Polish political scene is likely to be livelier than ever. “Polish Market” largely owes its publishing success to its neutrality, which has allowed it to work with different political groupings on an equal footing in the past two decades or so. This has enabled “Polish Market” to be present at some key events, such as the 20th anniversary of NATO accession on March 12. Hopefully, the magazine will still have a chance to chronicle other crucial developments in years to come.

Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

3/2019 polish market

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57 MIĘDZYCHÓD-A PEARL IN THE LAND OF 100 LAKES 60 POLAND WORTH DISCOVERING – MACIEJ PROLIŃSKI 62 WARMIA AND MAZURY A REGION WORTH LIVING IN – GUSTAW MAREK BRZEZIN, MARSHAL OF WARMIŃSKOMAZURSKIE PROVINCE

63 OLSZTYN-MAZURY AIRPORT – IN THE HEART OF WARMIA AND MAZURY

64 THE POMERANIAN ZONE SUPPORTS INNOVATION-

PRZEMYSŁAW SZTANDERA, PRESIDENT, THE POMERANIAN SPECIAL ECONOMIC ZONE

ECONOMY

75 LESS RED TAPE? 76 ECONOMIC OPENING OF THE YEAR 78 BEYOND GDP 80 JUBILEE GOLDEN ENGINEER GALA – JERZY BOJANOWICZ CULTURE

83 ATTENTION – AUCTION OUR INVITATION TO AUCTIONS OF WORKS OF ART –MACIEJ PROLIŃSKI

84 CULTURAL MONITOR

TRANSPORT

66 NEW TRANSPORT HUB MAKES ECONOMIC SENSE MIKOŁAJ WILD, SECRETARY OF STATE, GOVERNMENT PLENIPOTENTIARY FOR THE SOLIDARITY TRANSPORT HUB POLAND

68 LUCRATIVE INVESTMENT PROJECT 70 IN TRANSIT – JERZY BOJANOWICZ 72 RECORD CAR SALES – WOJCIECH DRZEWIECKI, PRESIDENT,

FOOD INDUSTRY

86 THE LAND OF HONEY 88 POLISH FOOD HAS POTENTIAL 89 JAN MAZUREK, MICHAEL STRÖM ECONOMIC MONITOR

THE SAMAR AUTOMOTIVE MARKET RESEARCH INSTITUTE

74 POCZTA POLSKA DEVELOPS LOGISTICS IN EUROPE

3 (282)/2019

PUBLISHER: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

(RYNEK POLSKI Publishers Co. Ltd.)

Polish Market :: 3 (282) /2019

PRESIDENT: Krystyna Woźniak-Trzosek

........................

promoting regions

........................

new solidarity transport Hub

........................

20 years in naTO

........................

“tHe

future begins today…

Lubuskie wants to be a green land of modern technologies.”

elżbieta anna polak Marshal, lubuskie Province

Lubuskie - tHe region of tHe future

Cover: Elżbieta Anna Polak, Marshal, Lubuskie Province Photo source: www.shutterstock.com, www.commons.wikimedia.org unless otherwise stated

CONTRIBUTORS: Agnieszka Turakiewicz

VICE - PRESIDENTS: Błażej Grabowski, Grażyna Jaskuła

GRAPHIC DESIGN: Agnieszka Charuba, Joanna Wiktoria Grabowska

ADDRESS: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl

SALES: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Magdalena Koprowicz m.koprowicz@polishmarket.com.pl

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Jerzy Mosoń j.moson@polishmarket.com.pl ENGLISH EDITOR: Rafał Kiepuszewski

Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

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WRITERS/EDITORS: Jan Sosna, Maciej Proliński, Jerzy Bojanowicz, Jan Mazurek, Andrzej Kazimierski, Janusz Turakiewicz, Janusz Korzeń

Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unsolicited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility whatsoever for the content of advertising material.

Reproduction of any material from this magazine requires prior written permission from the Publisher.

PU B LISHED SIncE 199 6 No. 3 (282) /2019 :: www.polishmarket.com.pl

TRANSLATION: Sylwia Wesołowska-Betkier, Agit

PRESIDENT

BALANCED SECURITY

“

It is not in our interest to create any European competition for NATO, it is important that activities at EU level are complementary with NATO activities,” Polish President Andrzej Duda said in Warsaw on March 7. He pointed out the role of the North Atlantic Alliance in building security in Europe and transatlantic relations. In his view, even strained relations between the US and some European countries will not disturb this security. The President also declared Poland's readiness to participate in European defence projects, which he said should be complementary, and not competing with NATO. He stressed that what happens within the EU regarding military security should be simultaneously pursued in relations with NATO.

INVITATIONS TO CLOSEST ALLIES

FOREIGN POLICY PRIORITIES

(Sources: polskieradio24.pl, president.pl, PAP)

P

resident Andrzej Duda has outlined the priorities of Poland’s foreign policy. “If we look at the North Atlantic Alliance, which celebrates its 70th anniversary this year, with Poland marking 20 years of its NATO membership, what comes to the fore is the establishment of the so-called advanced forward presence of the Allied forces on NATO's eastern flank. This was indeed a breakthrough decision. Allied units, including in particular American troops, began stationing in Poland, in the Baltic States and Romania. Our soldiers are in Romania today, as well as in Latvia. Poland is also currently carrying out the Baltic Air Policing mission. As part of our allied commitments, we are present in Afghanistan, where we are increasing the number of our troops. We are also present in the Balkans and Africa,” the President noted.

“Today we are a member of the United Nations’ Security Council, we have been there full year in 2018 and we will be there for the whole of this year. This affords an opportunity to act among the countries that have the

6 polish 6 polish market market

most to say in the UN. We are present there under the motto 'Peace through law',” Andrzej Duda said.

“There is also the question of our local and regional cooperation within the framework of the European Union. We are also cooperating in the format of the Three Seas’ Initiative in Central and Eastern Europe, which continues to be active, we hold regular meetings. If we look at our regional cooperation from other angles, too, we must not forget about the one, which is a narrower format, that is within the Visegrad Four, which is doing very well. We have in store elections to the European Parliament. A new European Commission will be formed and, in future, the new European Parliament. All this will be arranged anew. We want to play the biggest possible role here. We are very ambitious,” he underscored.

President Andrzej Duda also said Poland wants to be involved in the work of the G20 group. “We are one of the fastest growing economies in Europe and one of the best economies in the world,” he emphasised.

P

resident Andrzej Duda has issued invitations to leaders of the EU, NATO and Eastern Partnership countries, and the UN secretary general, to attend the 80th anniversary of the outbreak of World War II on September 1. Presidential aide Krzysztof Szczerski said: “They have been sent to our closest allies, all countries within NATO, the European Union and the Eastern Partnership (Armenia, Azerbaijan, Moldova, Ukraine, Georgia and Belarus), and to UN Secretary General Antonio Guterres."There are plans for separate Polish-German commemorations, mainly devoted to remembering civilian casualties of the war, as well as international ceremonies that will likely take place in Warsaw."

PRIME MINISTER

CARING SOCIETY

T

he introduction of a new programme of family benefits for each child, abolition of income tax for workers under 26 and a one-off bonus for old age pensioners, were some of the new measures outlined by Prime Minister Mateusz Morawiecki at a presentation in March. The package of new welfare solutions had been originally announced

by Jarosław Kaczyński, leader of the ruling Law and Justice Party. “When we look at the new items on our agenda, we can see that there is a certain strategy, an idea and a plan behind them. This is our leap into the future which we want to make and which we offer to all Poles. It is meant to make all this possible, and our credibility hinges on its implementation,” said the Prime Minister. He added that “the way towards the implementation of subsequent great objectives geared toward society’s development has been set”.

Mateusz Morawiecki said that the new proposals “provide continuity and constitute a certain strategy, while the concepts presented in them answer the needs of Polish citizens at various stages of their lives.” The new welfare package is to cost around PLN 40 billion. The Prime Minister said the necessary resources to carry out all the major social, development, civilization and economic projects are available. The funding is to come from extra VAT and CIT revenue. “There must be funds, determination, will and finally credibility in achieving the objectives one pursues.

This cabinet meets these five main conditions.

I believe that with the programme we will build the Poland of our dreams,” Prime Minister Mateusz Morawiecki concluded.

BEST FRIENDS “Friendship between Poland and Hungary has lasted for over a thousand years,” Prime Minister Mateusz Morawiecki said during a ceremony in Budapest on March 15, marking an anniversary of the Hungarian Revolution of 1848. He was invited to attend the event by his opposite number Viktor Orbán.

Mateusz Morawiecki said that the desire for freedom permeates the history of the two nations. “May Hungarians and Poles stand united in their faith in a better world for the ordinary people, not just for the wealthy and the elite,” said the Polish Prime Minister. He laid a wreath under the monument

“

WHEN WE LOOK AT THE NEW ITEMS ON OUR AGENDA, WE CAN SEE THAT THERE IS A CERTAIN STRATEGY, AN IDEA AND A PLAN BEHIND THEM.”

to general Józef Bem, the Polish hero of the Hungarian war of independence. The motto for the revolution was the manifesto “What do the people of Hungary want?” proclaimed by circles surrounding the famous Hungarian poet Sándor Petőfi. The uprising was suppressed by intervening Russian troops. The Polish Legion, commanded by General Józef Wysocki, took part in the fighting on the side of Hungary. General Henryk Dembiński and General Józef Bem, who was considered to be the most eminent military leader of the campaign, served as commanders-in-chief of the Hungarian army.

TIGHTENING ENERGY COOPERATION WITH US

A

strategic dialogue on energy under a memorandum signed by Poland and the US, was inaugurated by US Secretary of Energy Rick Perry and Piotr Naimski, Secretary of State at the Polish Prime Minister’s Office at a meeting in Houston, Texas on March 11. As agreed in the memorandum, joint projects in the areas of cyber security, nuclear energy, fossil energy and energy infrastructure, were discussed. In particular,

the agenda focused on nuclear energy for civilian use, cyber security and fossil fuels.

Both sides welcomed the results of bilateral cooperation in the LNG market, as evidenced by contracts concluded between Polish and US companies for the supply of natural gas.

EXTREME MASTERS

“

E-sport are a wonderful source of creativity. This is precisely what the Polish economy needs,” Prime Minister Mateusz Morawiecki told the finalists of the e-sports tournament in the city of Katowice on March 3. Intel Extreme Masters is the oldest active electronic sports league in the world. Since 2014, the final event of the gaming World Championship has been held in Katowice, where about 500 of the world’s best players gather each year. The Prime Minister met with the organisers and participants of the tournament finals. He was keen to find out more about Poland’s leading game developers. He stressed that this industry creates completely new services and products.

“In this sector, not only are we noticeable on the world’s map, but we are among the best,” Mateusz Morawiecki said.

3/2019 polish market

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POLAND THE CENTENARY OF REGAINING INDEPENDENCE

ART

AND AIR TRAVEL Passengers at Warsaw’s Chopin Airport can visit an exhibition entitled "Polish Family Album" until the end of August. It is meant to promote Polish art in unusual surroundings with the use of new technologies. The exhibition was put together to mark the 100th anniversary of regaining of independence by Poland last year. It features large-format reproductions of portraits, landscapes and other important paintings - a total of over 200 reproductions of works by outstanding Polish painters, including Olga Boznańska, Stanisław Wyspiański, Julian Fałat, Leon Wyczółkowski, Jacek Malczewski, Stanisław Witkiewicz, Maksymilian Gierymski and Aleksander Gierymski.

Maciej Proliński

8 polish market

M

ost of the 200 works on show at Warsaw’s international airport are portraits. There are also 45 landscapes and forty other works. All are reproductions of paintings from the National Museum in Warsaw. The largest piece is 243 square meters large. If you placed all the paintings on the ground next to each other, they would fill over seven volleyball courts.

Reproductions have been placed throughout the airport - in the departure and arrival halls, along the entire length of the main pier, and in the VIP area.

Professor Piotr Gliński, deputy prime minister and minister of culture and national heritage, believes that this exhibition introduces Polish culture to the general public in a very successful way. "It allows visitors to enjoy art works of the highest calibre. It's a great idea to put on show over 200 large format reproductions of the best Polish paintings by the most famous Polish artists," says Piotr Gliński. "Passengers are bound to enjoy it. At the same time, it has an educational value because we can learn new things while being immersed in high culture," he adds.

"Passengers using Chopin airport are greeted with an exhibition which testifies to the strength, diversity and resilience of Polish culture at a time when Poland was

absent from the world map. Culture has always carried values and national identity. Today, we can be proud of it and show the best of Polish culture to foreign visitors.

Since the entire airport has been transformed into an art gallery, we have a chance to reach millions of people, including those who visit Poland for a short time, " says Jan Kowalski, director of The Office of The "Niepodległa" Programme. He adds that a large part of the exhibition features portraits of Polish men and women. In their faces and gestures, Polish visitors can see themselves, their relatives and neighbours.

At this first-of-a-kind airport exhibition in Poland, the achievements of Polish artists are presented with the use of new technologies. Traditional descriptions of individual paintings are accompanied by an interactive mobile app based on the augmented reality technology. It allows you to find out more about the works you watch. The exhibition is complete with a 360 ° virtual reality video depicting the richness of Polish history, culture and nature.

The organisers of the project are The Office of The "Niepodległa" Programme and the Państwowe Porty Lotnicze (PPL) airport authority. The exhibition is sponsored by PKN Orlen. The National Museum in Warsaw is • the show’s partner.

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

A JAZZ TAKE ON

M O N I U S Z KO

Włodek Pawlik is an internationally acclaimed pianist and composer, the one and only Polish Grammy award winner in the jazz category (Grammy 2014 for the album "Night in Calisia.") Jolanta Pszczółkowska-Pawlik is both the director of the Pawlik Relations Concert Agency, a producer of Włodek's records, and a classical concert pianist who focuses on a song repertoire. Both artists are winners of “Polish Market’s” Honorary Pearl award in the Culture category. To mark the currently celebrated Stanisław Moniuszko Year, they have prepared a set of recordings devoted to the great Polish composer. The CDs are released by Pawlik Relations in partnership with “Polish Market.”

Maciej Proliński MONIUSZKO IMPROVISED. PAWLIK / MONIUSZKO: POLISH JAZZ WŁODEK PAWLIK TRIO

Włodek Pawlik, a great ambassador of Polish art in the world, continues to ride the crest of the wave of popularity. His latest project is inspired by works by Stanisław Moniuszko (18191872,) the founder of the Polish national opera who also wrote numerous songs. On the album you can listen to some of his most famous arias and songs, including "Know ye the land" "Fir trees sigh on the mountain top," "The Spinstress" and "This old clock," in a completely new, trail-blazing jazz trio version. Pawlik is accompanied by drummer Adam Zagórski and double bass player Paweł Pańta. Włodek Pawlik approaches Moniuszko's music with great fondness for the original. It will be easy for listeners familiar with Moniuszko to recognise the melodies. But sometimes, the pianist goes off in his own direction. The result is a fresh, personal take on Moniuszko, saturated with jazz and improvisation.

In Poland, Włodek Pawlik is a household name. He is described as an institution of Polish culture. His latest project brings some truly amazing music. His masterly performances are passionate, but frugal, eclipsing many a pianist.

Even for his fans, this is a journey full of surprises. It is also bound to be of interest to those who are not normally into jazz, for example, those who mainly admire Moniuszko’s works in philharmonic and opera halls. The beauty of this album does not just lie in the fact that the two worlds of classical music and jazz collide.

In fact, these two seemingly distant worlds resonate here in unison, creating a natural blend.

"As far as I go, I was first gripped by music in a very natural, intuitive way, through my sensitivity, and not through pseudo-intellectual speculations. Jazz is a noble and very emotional music, requiring a knowledge of music and virtuoso skills, derived from the melodic, harmonic and rhythm heritage of the masters of this genre," Pawlik said in an interview for “Polish Market” last year. It is great that this finds reflection in his own music and in his variations on the music of other masters. And that's what this album is all about.

MONIUSZKO DISCOVERED ... MONIUSZKO: SONGS. VOLUME 3. JOLANTA PSZCZÓŁKOWSKA-PAWLIK, KAROLINA RÓŻA KOWALCZYK, KATARZYNA SZYMKOWIAK

The album is the third in the series "Moniuszko: Songs." It features Jolanta

Pszczółkowska-Pawlik, an outstanding pianist and record producer. For several years, the artist's work has focused on recordings of a set of songs by Stanisław Moniuszko. The first CD in this series, with a selection of songs for mezzo-soprano Elwira Janasik, was released in 2014. On the second album, released at the end of 2016, we can listen to songs for the bass (Michał Dembiński). Both albums won rave reviews from critics and proved popular with record buyers. On the latest one, "Moniuszko: Songs. Volume 3," you can find 24 songs performed by the talented young soprano Karolina Róża Kowalczyk accompanied by mezzo Katarzyna Szymkowiak in four duets. The songs collected here are about love, innocence, youth, and longing. There are also songs praising the beauty of nature. In the artists’ classic, impeccable performance, you can hear the essence of Moniuszko's music. The songs collected on the CD, which are captivating both harmonically and in terms of texture, are simple, yet lyrical, each of them tells a story. You listen to these interpretations with utmost pleasure. They take you back to a lively, colourful, dreamy and nostalgic world of old Poland. The album is complete with a booklet featuring Polish lyrics translated into three languages (English, Japanese and Russian). All those who have worked on the release wanted to help Moniuszko’s outstanding romantic songs reach music lovers around the world. "Moniuszko is not a forgotten composer, but he is a neglected composer. Moniuszko's output is simply narrowed down to two operas and something like 10 songs, while Moniuszko wrote about 300 songs. I intend to take care of this legacy. I’m very happy that along the way I keep meeting interesting young musicians, our performers, and I can suggest that they sing songs that are virtually unknown, even in connoisseurs' circles," Jolanta Pszczółkowska-Pawlik said. • 3/2019 polish market

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POLAND THE CENTENARY OF REGAINING INDEPENDENCE

WARTIME

RESISTANCE COURIER

A new Polish WWII spy drama, "The Messenger," directed by Władysław Pasikowski, hit cinemas in March.

Inspired by a secret mission to Nazi-occupied Poland by the resistance courier Jan Nowak-Jeziorański who carried messages to Polish fighters back home from London, it is much more than a thriller. The plot is set shortly before the outbreak of the Warsaw Rising of 1944, when the underground Home Army command weighed pros and cons, trying to decide whether to launch an uprising against the Nazis in the Polish capital.

With a captivating central character, the film raises questions about the meaning of the abortive rising.

Maciej Proliński

“

10 polish market

The Messenger” is not a biographical film about Nowak-Jeziorański (1914-2005.) whose life story would be enough to fill a multi-episode series. Jan Nowak-Jeziorański is, in fact, one of the most important, if slightly forgotten, figures of 20th century Polish history. Beginning in 1943, he shuttled between Warsaw and the Polish government-in-exile in London as a courier of the Commander-in-Chief of the Resistance Home Army. He took part in the Warsaw Rising. After its fall, he managed to escape to London. When the war was over, he worked for the BBC Polish Section, and then went on to set up the Polish Service of Radio Free Europe, which broadcast to communist Poland from Munich in Germany.

He remained its head until 1975. Then he went on to live in the US, where together with Prof. Zbigniew Brzezinski, President Jimmy Carter’s foreign policy adviser, he continued to bring Poland to the attention of leaders of the free world. During the term of Ronald Reagan, he was a consultant to the US National Security Council. At that time, he was involved in helping the Polish democratic opposition and Eastern Europe’s first anti-communist movement Solidarity, which was founded in Poland in 1980.

Nowak-Jeziorański was also one of the architects of Poland's NATO accession. As of 1991 he lobbied for the cause in Washington. He did not return to Poland until 2002, to become actively involved in the country’s political life. He commented on current events and promoted the idea of Poland's integration with the EU. "Poland's greatest ambassador since the time of (early 20th century independence leader Ed.) Ignacy Paderewski, comes back home.

In the United States he worked for the Polish cause," said former dissident Prof. Władysław Bartoszewski in August 1989, when he greeted Nowak-Jeziorański at the Warsaw airport on his first visit to Poland since the end of WWII. “The Messenger” has been directed by one of the most popular and critically acclaimed Polish filmmakers, Władysław Pasikowski. Together with co-screenwriter Sylwia Wilkos, he takes up one of the turning points in Polish history with the aim of attracting younger audiences, for whom the artist believes, the country’s past is something quite abstract and remote.

The plot begins several days before the outbreak of the Warsaw Rising when Polish officer, Jan Nowak-Jeziorański, is picked in London for the secret mission. He is flown

POLAND THE CENTENARY OF REGAINING INDEPENDENCE home via the Allied base in Brindisi in Italy. His mission is to pass secret information from the government-in-exile and Winston Churchill himself to General Tadeusz “Bór” Komorowski, the commander-in-chief of the Home Army.

Nowak-Jeziorański is played by Philippe Tłokiński, a Polish actor born in France and raised in Switzerland who is considered one of the most promising up-and-coming actors. Thousands of lives depend on the success of the courier’s mission. If he were to fall into enemy hands, he would be doomed. Not everything goes according to plan, the first problems occur in London. The Allies appear not to be in a rush to fulfil their promises of military assistance to Poland which would have given the rising a chance of succeeding. Nowak-Jeziorański also receives somewhat contradictory signals from the Polish side. Some tell him to prevent the outbreak of the rising. Others are ready to spill blood to get rid of the Germans, to liberate Warsaw ahead of the Soviet army’s advance from the east. The courier's activities are closely followed by Nazi spies in London. And so, NowakJeziorański starts out on his thrilling and terrifying war odyssey. He travels by plane, train and horse-drawn-cart, but the closer he gets to his destination, the more doubts he has.

Pasikowski’s action movie promises to be a hit. His intention is to reach both history fans and those who find the intricacies of Polish history boring, a tall order indeed. "The Messenger" is a truly professional venture. Its clear asset is Philippe Tłokiński, who perfectly fits the part of an ordinary soldier who becomes a key actor in one of the most dramatic episodes of Polish history. His partners are highly convincing, though not yet widely known actresses. Polish-born actress and singer Patricia Volny was brought up in Germany and Australia. Julie Engelbrecht is a FrancoGerman actress, graduate of the College of Music and Theatre in Hamburg. The international trio of "The Messenger" stars is complemented by the cream of Polish actors who play smaller parts, which are yet very important for the story.

Grzegorz Małecki plays General Tadeusz "Bór" Komorowski (Commander-in-Chief of the Home Army.) There is Jan Frycz as General Kazimierz Sosnkowski (Chief of the Polish Armed Forces in exile in 1943-1944,) and Rafał Królikowski as General Stanisław Tatar, who was against the courier’s mission. Mirosław Baka plays general Tadeusz Pełczyński (deputy commander of the Home Army from September 1943 to October 1944). Zbigniew Zamachowski stars as colonel Antoni Chruściel "Monter" (Warsaw District Commander of the Union of Armed Struggle resistance organisation), Adam Woronowicz as colonel Kazimierz IranekOsmecki (head of Home Army intelligence) and Sławomir Orzechowski as Stanisław Mikołajczyk (Prime Minister of the government-in-exile 1943-1944.) The courier is given a few minutes of time to talk to Winston Churchill himself (played by Michael Terry). Nazi officers attempting to thwart Nowak's mission are Martin Butzke and Nico Rogner, and resistance fighters and citizens supporting the Home Army are played by Tomasz Schuchardt, Wojciech Zieliński and Cezary Pazura.

The work of cinematographer Magdalena Górka is truly captivating. She has huge Hollywood experience, and has been working with Pasikowski for several years now.

This gives the work particularly strong colours. Górka admits that during preparations for “The Messenger,” materials which were handed over to her by the Warsaw Rising

Museum, were extremely helpful. "Jan Ołdakowski and Dariusz Gawin showed me at one of the meetings a map of the capital as it was before the Rising, as well as photos taken from German planes before and after it. It was shocking to me because I had a completely different idea of what the city looked like before August 1944,” Górka admits. "They gave me an album of photographs by Eugeniusz Lokajski which inspired me to be brave in building the world of 'The Messenger', not just in terms of the choice of lenses. I was previously convinced that everything was photographed with wide lenses at the time, but I also saw a lot of great portraits of Home Army soldiers and civilians. Everybody was happy,” the cinematographer says.

From the very beginning, the music sounds very moving. The score is by Jan Duszyński, a graduate of New York’s Juilliard School of Music. He devotes much of his work to incidental music for the film and theatre. He works with a number of Warsaw theatre companies. The artist’s music features a remarkable range of stylistic versatility.

The movie was co-produced by the Warsaw Rising Museum and Scorpio Studio, a company which specialises in productions which tell stories of once famous Poles who have been neglected by today's mass culture. "The Messenger" asks whether the decision to start the rising was justified, since a third of Warsaw’s population perished in it, but it does not give simple answers. It leaves it to the au• diences to make up their mind.

Photo: Shots from the film "The Messenger" - Kino Świat

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DEFENCE SECTOR

CELEBRATING THE 20TH ANNIVERSARY OF NATO ENTRY The North Atlantic Alliance is the largest and strongest military bloc in the world, formed on the basis of the Washington Treaty of April 1949. Poland became its signatory 20 years ago, having embarked on a drive to be included in western military structures, right after it regained independence in 1989. run of bad luck in Poland’s history. " Together with President Aleksander Kwaśniewski, Poland was represented by Prime Minister Jerzy Buzek. “Polish Market” was present at the Washington Summit. We reported on this event because we were aware of how crucial it was. “Polish Market” editor-inchief Krystyna Woźniak-Trzosek personally experienced the cordiality, friendly feelings and attention to Polish affairs of US Senator Edward Kennedy, who during the meeting told her about the history of his family and country. He was also very keen to find out how ordinary Polish citizens felt about NATO and what their expectations of cooperation within NATO were. NATO accession was followed by Poland's accession to the European Union. Over the past two decades, the Polish economy has been developing by leaps and bounds.

S

Polish President Andrzej Duda and NATO Secretary General Jens Stoltenberg

hortly after the elections lost by the communists in 1989, and even before the fall of the Berlin Wall and the dissolution of the Warsaw Pact, Poland was the first among Central and Eastern European countries to approach NATO. It was the first to accept an invitation to start accession negotiations, agree on a list of conditions and fulfil them. "Entrance exams" lasted nine years, and the vacatio legis, the time between the promulgation of the relevant law by the Polish Parliament and the moment it took legal effect, lasted only twelve days. Since then, Poland has been protected not only by the strength of its own armed forces, but also by the combined power of the Member States, including the US as a superpower.

A key element which guarantees the security of NATO member states is Article Five of the Washington Treaty, under which any attack on a member of the North Atlantic Treaty Organisation is deemed by other Member States as an attack on them, too.

It is no exaggeration to say that Poland can be considered a model member state of the Alliance. It fulfils all treaty obligations, participates in the most important missions, it is

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active in the field of political and military cooperation. This testifies to how seriously Poland views NATO as a foundation of its security. The Warsaw NATO summit of 2016, which ensured genuine military security to the organisation’s eastern flank, was an important stage in the political debate at the highest level.

LOOKING BACK

Twenty years ago, Poland officially joined the North Atlantic Treaty, when on March 12, 1999, Polish Foreign Minister Prof. Bronisław Geremek handed the accession documents to US Secretary of State, Madeleine Albright at the Harry S. Truman Library & Museum in the American city of Independence. That was when Poland became a full member of the Alliance.

All those who witnessed the ceremony were aware of how momentous it was. A month later, another great moment came during the 50th NATO summit in Washington, which took place on 23-25 April 1999. It was Poland’s first summit within NATO structures. Polish President Aleksander Kwaśniewski told the summit: "On NATO’s 50th anniversary we became a member of the organisation. This fact is a symbol of the final end to a nearly 300 year

THREE CHEERS

Poland celebrated the anniversary of NATO accession with much pomp and circumstance.

There were good reasons for this. Polish President Andrzej Duda met with NATO Secretary General Jens Stoltenberg at the Belvedere Palace in Warsaw. According to media reports, the visit by the head of NATO and the joint celebration of the 20th anniversary of Poland in NATO "strongly emphasised" the fact of Poland's membership in the Alliance.

President Andrzej Duda said: “We have assured the Secretary General that we are fulfilling our commitments. I stressed that Poland is boosting its presence in Afghanistan and that we are aware of other areas of the Alliance's operation, not just in this part of Europe. (...)

I also assured the Secretary General that we meet our obligations when it comes to defence spending. (...) We strengthen the potential of the Polish armed forces. By 2030, we will have increased defence spending to 2.5% of GDP." The head of NATO told a news conference: “It's great that I can be in Poland again. (...) In 2019, we celebrate the 70th anniversary of the establishment of NATO, but also the 20 years of Poland’s presence in NATO. Over the past 20 years, Poland has shown its commitment to our Alliance. (...) We are extremely grateful

DEFENCE SECTOR for the contribution that Poland brings in every day. NATO also increases its presence in Poland. (...) I would like to thank Poland in particular for what it does when it comes to defence spending. Poland sets an example in this matter. (...) We know that in an uncertain world we need to invest more in defence.”

President Andrzej Duda also took part in ceremonies marking the anniversary of NATO enlargement at the Hradčany Castle in the Czech capital Prague. He was joined there by Czech President Miloš Zeman, Slovak President Andrej Kiska and Hungarian President János Áder. Twenty years ago, the Alliance was joined

by Poland, the Czech Republic and Hungary, followed by Slovakia in 2004. Andrzej Duda said: “We are proud that we can be a member of the North Atlantic Alliance. We believe in the Alliance, which is the largest military alliance in the world and is an alliance in which brotherhood means brotherhood and support means support; and Article Five means Article Five, not so-called help, which I do not need

“

President Andrzej Duda visited the Orzysz training grounds

A KEY ELEMENT WHICH GUARANTEES THE SECURITY OF NATO MEMBER STATES IS ARTICLE FIVE OF THE WASHINGTON TREATY, UNDER WHICH ANY ATTACK ON A MEMBER OF THE NORTH ATLANTIC TREATY ORGANISATION WOULD BE DEEMED BY OTHER MEMBER STATES AS AN ATTACK ON THEM, TOO. ”

to mention here in Prague ... I assure you that we draw conclusions from history and treat our allied commitments extremely seriously,” he added. “Unfortunately - threats that enslaved us for over 40 years, are coming back, in a slightly different form, but are undoubtedly coming back,” said Andrzej Duda during the Presidents’ debate. “Is our readiness needed when we are already part of a truly free world, not only mentally - which I believe we always have been - but also politically and geopolitically? Should we respond (to these threats, Ed.)?

Yes, we should," said President Andrzej Duda.

Celebrations of the 20th anniversary of Poland's NATO accession, called NATO Week, did not just include the visit of NATO Secretary General Jens Stoltenberg to Poland, or the ceremony in Prague, where the four presidents marked the anniversary. President Andrzej Duda also visited the Żagań and Orzysz training grounds. He met with Polish and US soldiers and other Allied troops stationed in Poland as part of military cooperation with the United States under which the presence of NATO forces has been strengthened in the eastern flank.

For the first time Andrzej Duda also joined the annual managerial briefing of the executive of the defence ministry and armed forces commanders. Minister of National Defence Mariusz Błaszczak told the meeting: “In 2018, we took six steps towards a more modern and more effective Polish Armed Forces. We provided adequate financial resources, created an effective command system, increased the size of the army, boosted the modernisation of the Armed Forces. We took care to combat threats in cyberspace and maintain good relations with key allies. We will continue this march also this year.” Looking back on 2018, Minister Blaszczak underlined: “It was a year of catching up by the Polish Army after many years (of neglect Ed.) by our predecessors (...) With all firmness I can say that we have achieved all the goals we set for ourselves.

We have set defence spending at 2% of GDP. In 2018, at my request, we obtained an additional sum of PLN 1.6 billion for modernisation from the state budget. Last week, I signed the most comprehensive ever technical modernisation plan in terms of planned expenditures. We

will spend about PLN 185 billion on modernisation. For this money, we will buy, among others, 32 modern and multi-purpose 5th generation fighters.” Speaking about the modernisation process, Minister Blaszczak mentioned a series of contracts meant to increase the potential of the Polish armed forces: “I mean, of course, the American Patriot air defence system as part of the Wisła programme, and the Himars rocket artillery division as part of the Homar programme. I have signed a contract for the supply of Black Hawk helicopters to special forces, we are finalising a tender for the supply of additional helicopters, this time for the navy. We also have money for helicopters under the Kruk programme.” Concerning the ministry’s priorities for 2019, Mariusz Błaszczak said that apart from increasing the size of the army and strengthening the eastern flank, security in cyberspace is an important point. “We have great cyber specialists, so we form cyberspace defence forces and develop appropriate tools and structures to ensure proper conditions for Polish soldiers to serve • in,” the minister noted.

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DEFENCE SECTOR

20 YEARS OF POLAND IN

NATO

MAREK ZIÓŁKOWSKI,

Permanent Representative of Poland to the North Atlantic Council

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DEFENCE SECTOR

F

ollowing the collapse of the communist regime in 1989, Poland established a foreign policy based on good relations with neighbouring countries, fulfilling its Euro-Atlantic aspirations and a strong partnership with the United States.

Two decades of Poland’s membership in NATO marked a Copernican shift in Poland’s national security policy.

After the dissolution of the Warsaw Pact, a newly-democratic Poland, with other friends from Central Europe, made a strategic choice to pursue NATO membership. The members of the most successful collective defence alliance in history have the obligation to defend each other in case of an attack. This provision of the Washington Treaty became the most substantial part of the national interest of each Ally.

NATO accession has moved Poland out of its strategic doldrums. Our country no longer walks alone.

Since entering NATO in 1999, Poland had to adapt quickly to NATO membership while, at the same time, the Alliance itself has been adapting to a changing security environment. We entered NATO on the cusp of its intervention in Kosovo. This crisis was managed and the Alliance delivered once again.

However, history came back with a vengeance. The first challenge has been terrorism. Poland, together with all Allies invoked Article 5 and a long NATO engagement in Afghanistan – in fact still going on - ensued. Poland has been there lock, stock and barrel. In fact, as part of the International Security Assistance Force, Poland’s 2600 personnel took responsibility for an entire Afghan province - Ghazni.

We brought not only heavy lift, but also tons of humanitarian aid and 200 assistance projects. At the same time, Poles trained 11,000 Afghan uniformed personnel. Our contribution to Afghanistan continues to be appreciated by the Afghan people and Allies.

Then, Russia’s aggression on Ukraine and its illegal and illegitimate annexation of Crimea, showed that war did not cease to be a threat to Europe’s security. NATO again had to field a strong response.

This time Poland would have a strong say in making NATO fit for purpose. The key decisions triggering NATO’s current response to Russia’s aggressive policy were made at the Warsaw NATO Summit in 2016: strengthening NATO deterrence and defence posture. The challenge faced by the Alliance is so serious that NATO decided to deploy four defensive, but combat ready battlegroups in Poland, Lithuania, Latvia and Estonia. They became a catalyst for even more NATO interoperability. Encompassing troops from 20 allied nations, they showcase the strong commitment to the Euro-Atlantic security by the members of the Alliance.

The 2016 Warsaw Summit, bringing together 39 heads of state and government from 54 Allied and partner states, summed up Poland’s rapid evolution in NATO – from a newcomer to one of the decision-shapers. Since entering the Alliance, Poland has built up a strong position at NATO as a confident, active Ally that contributes to setting the strategic direction for the Alliance.

“

WE BROUGHT NOT ONLY HEAVY LIFT, BUT ALSO TONS OF HUMANITARIAN AID AND 200 ASSISTANCE PROJECTS. AT THE SAME TIME, POLES TRAINED 11,000 AFGHAN UNIFORMED PERSONNEL. OUR CONTRIBUTION TO AFGHANISTAN CONTINUES TO BE APPRECIATED BY THE AFGHAN PEOPLE AND ALLIES."

NATO has changed us, while, in turn, we have changed NATO amid shocks in the security environment. NATO is taking root in Polish soil. NATO’s Security Investment Programme, for instance, has channelled EUR 715 million worth of investments to boost our country’s defences. There are over 4000 Allied troops in Poland – either as part of 1200-strong enhanced Forward Presence battlegroup; working at one of the multinational centres of excellence or command headquarters; or training together to hone Allied skills and sharpen interoperability.

Marshall Pilsudski, the father of Poland’s independence, the centenary of which we celebrated last year, said that weakness manifests itself in „grand words in the absence of substance”. Poland’s actions speak louder than our words.

Take our responsibility for defence spending. Poland spends more than 2% of GDP on defence – that’s a higher threshold than agreed at the 2014 Wales NATO Summit. Moreover, we have committed to increase this spending to 2.5% by 2030.

We put money where our mouth is. Today, our F-16 fighter jets are guarding the skies over the Baltic States and our soldiers are contributing to NATO forward presence in Latvia and Romania. Poland remains at the forefront of NATO partnership activities. We are co-leading a NATO Trust Fund to modernize the logistics of the Ukrainian military.

We kick-started NATO’s assistance to Ukraine to fight hybrid threats. Further South, we have been trail-blazing as leaders in training Iraqi army personnel to maintain Soviet-made military equipment.

Poland knows that “there is no such thing as a free lunch”.

We deliver– whether in troops deployed to NATO missions or through high level of defence spending. A strong Polish defence equals strong NATO. Ultimately, peace is safeguarded by a strong defence posture. Poland does not take security for granted. And NATO Allies know they can always count • on us.

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DEFENCE SECTOR

SPECIALISTS WORTH

MILLIONS

OF DOLLARS

Special forces are the only type of Polish armed forces that Lt Col KRZYSZTOF PRZEPIÓRKA, one of the founders of the legendary GROM unit, is not worried about. He tells Jerzy Mosoń about the genesis of the internationally admired unit and assesses the 20 years of Poland’s presence in NATO. Twenty years ago we joined NATO and finally felt secure. Were we right to feel so?

Yes, we were. I think every Polish soldier and citizen supported Poland’s entry to the North Atlantic Alliance.

It was a milestone on the road towards regaining security, just like our entry to European structures was. These two developments combined gave us a sense of community, too.

PM

But some experts point out that this lulled us into inaction and that the development of the armed forces was focused too much on units sent on military missions rather than territorial defence units.

Our problem is a lack of continuity in carrying out our plans, like for example the programme for the modernisation of the armed forces. Meanwhile, if we have signed some document it represents an obligation not only towards our soldiers and the defence industry. It is also a document presented to our allies. We want to be credible, which means that our weapons, training system and PM

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procedures have to be compatible with those of our partners. Our credibility also requires participation in military missions. We cannot expect support and at the same time say that our allies’ war is not our problem. Meanwhile, some signatories of the Pact have this attitude.

In this situation, is NATO’s Article 5 still a sufficient security guarantee for Poland?

It’s true that the further you go to the west in Europe, the weaker commitment there is to the Eastern flank’s problems. However, one should remember that NATO is still the biggest military alliance. Neither China nor Russia have such a big potential as the Alliance. One could see its strength during Operation Desert Storm when NATO’s air force needed only 100 hours to crush the world’s fourth largest army. It should also be remembered that a country’s security always has both a military and economic dimension. For me membership of the European Union is of paramount importance when it comes to economy PM

DEFENCE SECTOR

as well as security. The problem of defence spending is difficult because it is the biggest component of national budget expenditure.

Is the 2% of the Polish budget enough to modernise the armed forces?

It is little and will always be too little because threats are mounting and development requires constant changes. This concerns investment in all types of forces, except for special forces because in their case we are among the top countries. But I am sceptical when it comes to the future of operational forces. We lack technically advanced military equipment, in particular new navy equipment.

We should not give up on offset – we cannot afford buying off the shelf. We need more than 100 helicopters. Modern armed forces do not exist without an air force even if they include the GROM. PM

“

IT SEEMED TO ME THAT I WAS AN EXCELLENT SHOOTER. BUT HAVING SEEN WHAT THE AMERICANS SHOWED US BY PLACING TARGETS AT AN ABSURD DISTANCE OF A MERE 5 METRES I UNDERSTOOD I WAS WRONG."

Diplomatic Posts was thus established. At the same time, the Americans started to signal that it would be good if such a special unit came into being. After the Polish intelligence rescued from Iraq six American agents in Operation Samum these signals became stronger. In 1991, we turned up in the United States for training, still as members of the Armed Forces of the Polish People’s Republic (LWP). The Americans’ confidence in us was quite low, but there is no denying their commitment. After returning to Poland we already had a completely different knowledge.

Using my own example to describe this change, I can say that before joining the GROM I was an excellent shooter. In the United States they put us in a field with targets placed 5 metres in front of us. I thought it was absurd because in the LWP I had been taught how to shoot accurately from a distance of 25-100 metres with one hand. After the training presented by the American specialists I understood I couldn’t really shoot.

The tactics we learned in the LWP was based on knowledge from the time of the Second World War. Some changes were made after the war in Afghanistan where the Russians got a beating. But still it was all archaic. Our training in the United States was more real-life and modern, they showed us how to shoot accurately at targets placed just in front of us. We learned fast, so fast that it was surprising even to the Americans. We, Poles, can improvise and we are flexible. These traits were useful during our training.

Is it true that it costs USD1 million to train a single GROM soldier?

It costs more, but the exact figure is difficult to calculate because the soldiers train throughout their service. This is necessary because technology develops and the skills of terrorists are increasingly high as they learn from films, for instance.

PM

Which GROM operations would you single out since the inception of the unit?

First of all, the operation in Haiti in 1994 because Polish people learned then that there are Polish soldiers able to help them if the need arises. This got the idea of doing away with the GROM out of the heads of some politicians who had argued that the unit was expensive and unnecessary. We also conducted operations in Slovenia, Afghanistan and Iraq, but I cannot disclose any details.

PM

PM

Before establishing the GROM we had units of similar character. What did the transformation of the special forces consist in?

In the late 1980s and early 1990s, Poland got quite strongly involved in the repatriation of Russian Jews to Israel. The Lebanese terrorist organisation Hezbollah learned about it and attacked our embassy in Beirut. The task of examining the matter was delegated to Colonel Sławomir Petelicki, who was responsible for the protection of our diplomatic missions. His report on their security was withering. Something had to be done about it.

It was necessary to set up a unit that would tighten the system. The Centre for Training Specialists in Protecting PM

So you won’t confirm that Bin Laden’s capture was to a large extent a Polish success?

I neither confirm nor deny it.

What happens to GROM soldiers after they end their service?

We still lack systemic solutions with regard to the future of soldiers whose training cost millions. This means that the national budget does not fully recoup the money invested in special forces. The banking sector and public institutions, including schools, are now the best at using the skills of former commandos. However, it is first of all people who are aware that the question of terrorism is not whether it will come to Poland, but when.

• PM

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DEFENCE SECTOR

THE ARMY SHOULD BE

OUR AMBASSADOR

The leading Polish armaments company has been implementing the Leopard tank modernisation project for the Polish army for the past few years. But it’s still too little to restore the Polish arms industry to its former glory, the President of Zakłady Mechaniczne Bumar-Łabędy S.A. MAREK GROCHOWSKI says in an interview with Jerzy Mosoń. More resources are needed to upgrade existing equipment, and the Polish army should be the ambassador of the domestic arms industry in foreign countries so that it can count on more orders, the Bumar-Łabędy President explains.

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DEFENCE SECTOR What are the challenges facing BumarŁabędy in 2019?

In addition to the key tasks that we are facing when it comes to the Leopard 2A4 tank modernisation programme, to be upgraded to the Leopard 2PL version - a project in which our company is the main contractor - we will try to secure new projects. These will allow us to use the company's potential and capabilities, thus rebuilding our position. Another challenge is the need to step up work on the modernisation of the production facilities, thermal modernisation of production floors and office buildings, in order to improve the working conditions for the staff and optimise costs. As part of ongoing contracts, as well as looking ahead to future projects, we are actively recruiting new employees for manufacturing departments, hoping for long-term ventures.

PM

Does the company have a chance for a new long-term contract?

We are the contractor of the largest modernisation project currently being carried out for the Polish armed forces. Initially, there were plans to upgrade 128 tanks, but last year our plant acquired 14 additional vehicles to expand the scope of their functionality. Our company will ultimately upgrade 142 Leopard 2A4 tanks to the Leopard 2PL version. Our strategic partner Rheinmetall Landsysteme GmbH has formally completed the production process of six vehicles - a prototype and a test batch. Currently, work is underway on testing and final approvals of vehicles before their transfer. Having completed this complex process, Zakłady Mechaniczne Bumar-Łabędy S.A. will enter the production phase of modernised Leopards. We also have the necessary know-how and experience in operating and servicing Leopard 2A4 tanks. As part of inspection work, technical inspections are carried out down to the F6 level of the chassis, as well as of the turret and weapons.

Nevertheless, we are constantly working on acquiring a new long-term contract. In the last few years, there has been a visible increase in demand for repair services, in which Zakłady Mechaniczne Bumar-Łabędy S.A. has won a strong position based on human resources, technical resources and documentation rights.

We offer modernisation packages and repair services which correspond to clients’ individual needs. This holds true about virtually all types of armoured vehicles which have been manufactured in our plants, in particular PT91 tanks, WZT-2 and WZT-3 armoured recovery vehicles and T-72 tanks.

Our offer also includes the accompanying wheeled transported bridge, twenty and forty meters in length, soon to be joined by accompanying tracked tank bridge. We pursue these projects in cooperation with OBRUM, which PM

“

AT THE SAME TIME, WE WANT TO BE A NATURAL, IMPORTANT ELEMENT OF THIS COUNTRY’S DEFENCE STRATEGY."

is a natural design and technology partner for Bumar-Łabędy. The majority of armoured vehicles now in service in the Polish armed forces is the result of close cooperation between the two plants. It is for a good reason that the Silesia region is called the Polish Armoured Vehicle Valley, because in our immediate vicinity there is a former military plant in Siemianowice, currently Rosomak S.A. Our activities within the armaments industry are largely determined by external factors and government decisions. The ambition of our company's management is to develop and modernise the plant so that it can meet the requirements of a competitive market and be able to implement advanced projects. At the same time, we want to be a natural, important element of this country’s defence strategy.

Is there a chance to improve T-72 tanks soon?

Our company has repeatedly presented its potential in the field of repairs and modernisation of T-72 tanks. During the (arms industry’s Ed.) MSPO fair in Kielce in the past two years, we presented two process lines for the modernisation of tanks based on the T-72 tank. Also, a presentation of the modern PT-17 tank at MSPO 2017 highlighted the possibility of establishing cooperation in the design and assembly solutions which could be attractive to western clients. The application of weaponry enabling the use of NATO logistical facilities allows the inclusion of units equipped with such vehicles in multinational missions and brigades. Another proposal for the modernisation of the T-72 tank is a cost-effective approach such as the M2 modernisation package. It is addressed to all users of armoured equipment based on the T-72 solution. It assumes the maximisation of technical parameters with limited work on the body of the tank. The proposed components enable their further use in newly manufactured vehicles. While the PT-17 tank served to demonstrate a technology, the PT-91M2 in the A1 (PT-91M2 A1) or A2 (PT-91M2 A2) versions, is a fully functional prototype. However, when we think about potential clients, we don’t restrict ourselves solely to the domestic market.

With the support of PGZ S.A. we also hold talks with foreign clients to present possible configuration proposals.

Last year, technical negotiations were conducted on the modernisation of T-72 tanks. I’m convinced that the project will remain on the agenda. Zakłady Mechaniczne Bumar-Łabędy PM

S.A. has the qualified staff and knowhow to modernise such vehicles. We proved this in previous years, by executing a contract for Malaysia, on top of an upgrade of Polish T-72 tanks to the PT-91 Twardy version. According to industry insiders, a modernisation of T-72 tanks which are in service in the Polish army is on the cards. Work on this project will be carried out within the PGZ Group of companies, and the leading integrator will be Zakłady Mechaniczne Bumar-Łabędy S.A. For my part, I’d like to declare the company's full commitment and readiness to carry out the work in line with the requirements and expectations of the commissioning party.

There are those in Poland who are worried about the suspension of development projects, such as the Gepard Close Support Vehicle Programme. What does Poland stand to lose if it doesn’t meet this kind of challenges?

As armaments companies, we feel obliged to present new solutions and indicate potential opportunities to modernise military equipment.

We must realise that throughout the world, the funding needed for this type of work runs into billions of US dollars, and yet this kind of money is spent. To keep pace with rivals, we must be aware that it is impossible to achieve without an initial outlay. Know-how and a highly qualified crew are our strengths. This allows us to compete with foreign companies, for instance in the case of simulators. But without continued implementation work, it is difficult to keep up with the best. Armaments companies have often fought for survival from one month to another, so there was no question of development.

Now it seems that there is a chance for Poland to return to the group of countries with their own strong defence industries which offer modern solutions. We would like our army to be an ambassador of domestically manufactured equipment, like western armies are, because this is the key to the possible sales of our products and modern solutions. We must be aware that building a brand involves a number of activities and undertakings. Our companies provide jobs not just to their crews, but also to thousands of firms which cooperate in production processes. Strong armaments companies provide support both for the country’s armed forces and the entire economy. That is why I strongly believe that the coming years will bring us growth opportunities.

• PM

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DEFENCE SECTOR

RAMBO'S

SOUL

Being a member of NATO means that Polish medical personnel takes part in military missions, which very competently represented Poland in both Afghanistan and Iraq. Colonel, PROF. KRZYSZTOF KWIATKOWSKI, an orthopaedist, explains in an interview with Jerzy Mosoń, what the medical background of military missions is, who is the most keen to take part in them and what help can be provided in combat operations.

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What does a Polish military hospital look like on a mission?

It is a building made of containers, specially built and equipped for medical needs.

The hospital is disguised under tents. The modules wait to be assembled in the city of Bydgoszcz. That’s where teams of doctors and other medical staff are trained. The teams are meant to provide treatment to those who are at risk of losing their lives. This was the case both in Iraq and in Afghanistan. In cases of uncomplicated injuries, such as closed fractures and injuries to the spine when the patient was not paralysed, dressings were placed and patients were evacuated to a specialist American hospital with the highest referential level in these wars.

PM

Hang on, the Americans ran a specialist hospital, and the patient whose life was in danger was sent to the Polish one?

Yes. To a large extent, the success of treatment depends on the assignment of patients to the most appropriate place, which depends on the nature of injuries. I can remember a patient who suffered a traumatic dislocation of the thoracic spine. Tremendous pressure must have been applied to cause such damage. This PM

DEFENCE SECTOR soldier did not qualify as a priority case, because he did not suffer from lower limb paralysis associated with a broken spinal cord. The operation could not be performed at the Polish hospital. He was transferred to an American hospital with the highest referential level and was then flown to a US military hospital in Germany. Fortunately, one of the doctors who resided there at the time was a specialist in spinal surgery. He performed a complex operation to adjust the dislocation and stabilise the spine with special implants. The patient was then directed to the Traumatology Clinic of the Military Medical Institute in Warsaw. He suffered from minor neurological deficits which did not prevent him from moving about on his own. Injured or wounded patients whose circulatory and respiratory systems are stabilised, could be transported for final medical help in Germany. It also happened that a soldier was first flown to the US military base in Ramstein, and after it was established that there were no further counter indications, to a military hospital in Poland. The medical route the patient had to travel depended on how severe the injuries were.

In what circumstances did Polish soldiers usually suffer injuries?

Most often, soldiers were wounded when a military vehicle drove over an improvised bomb. This was the most common cause of extensive bodily injuries and deaths. Often there were also less extensive injuries. The victims were later evacuated to the American base in Ramstein or to the Military Medical Institute in Warsaw. The nature of injuries suffered by individual servicemen was recorded in detail.

After the end of the hostilities, most of the soldiers who took part in the mission in Afghanistan, were again checked up for late physical and mental disorders. It should be noted that quite a significant group of Poles who fought in the missions suffered injuries, the effects of which are still felt today.

PM

Poland’s principal ally in NATO has established the American Veterans Administration, which implements the "anywhere to anywhere VA health care” programme. Can a Polish soldier count on a similar support programme?

We are still lagging far behind. But yes, the Polish soldier does receive support. It results from an act of Parliament, under which the categories of veteran and injured veteran are distinguished. They can receive priority medical assistance and buy medicine at reduced rates. They have the opportunity to benefit from further treatment at the Veteran's Hospital in the Lądek Zdrój health resort. Significant support is provided by the Veteran's PM

“

JOINING A MISSION IS A TOUGH CHOICE AND IS OFTEN CAUSED

BY MATERIAL CONSIDERATIONS. THOSE WHO LEAVE, OFTEN LEAD COMPLICATED PERSONAL LIVES. TAKING PART IN A MISSION IS A WAY FOR THEM TO ESCAPE FROM THEIR FAMILY OR RELATIONSHIPS."

House in Warsaw. Many of the wounded soldiers, have returned to active service, despite their disability. Maybe they no longer serve exactly where they did before, but the army has not abandoned them.

How many Polish soldiers have been affected by war trauma? Has anyone ever counted and monitored the health of Polish veterans?

All soldiers are examined by psychiatrists and psychologists. However, I am not aware of any specific data concerning the number of people with post-traumatic stress disorder. But it is a large group.

PM

How has the level of treatment and hospital equipment changed on the Polish side since it joined NATO? Is it currently comparable to US standards?

In 1974, I took part in a UN mission whose aim was to separate the Egyptians and Israelis. The Polish mission supplied all the outposts on the Sinai Peninsula. At the same time, the Poles had a military hospital in Ismailia. When I compare the present equipment of the Polish medical mission and the equipment available at the time, it’s like night and day. We currently have something like a small county hospital, but the Americans have a proper general hospital. Differences are still visible.

PM

What is the contribution of Polish medicine to the armed forces?

Once, military hospitals in Poland were mainly intended for servicemen, but the army numbered half a million at the time, and now it's down to about 100,000. So now, soldiers only form a small group among all hospitalized patients. Before the armed forces became professional, there used to be over 200 orthopaedists in uniform, now there are about 30.

At the Military Medical Faculty in Łódź, where army doctors are trained, students are men PM

and women, about half and half. No female graduate of the faculty has volunteered to be trained by me in orthopaedics, because it requires not only specific knowledge but also good physical condition. There is no female army-trained orthopaedist on my team. By contrast, I have been approached by women who wish to practice orthopaedics, but are not graduates of the military faculty.

For an orthopaedist, is a medical mission a good opportunity to test their skills?

The range of wounds and injuries suffered by servicemen and those who are injured in traffic accidents, is similar. The basic difference is multiple injuries of the spine and muscles, open fractures containing metal fragments and foreign bodies which may cause the limb to be amputated. The experience of wars we are talking about, indicates that medical teams on duty in military bases face an additional threat of direct attack and missile attack.

These dangers are the reason why orthopaedists are not too keen to join military missions.

PM

So you must get marching orders?

You cannot order anyone to join a mission. It was planned, but it failed. Doctors build their careers, sometimes holding several jobs at a time. They also have families. Joining a mission is a tough choice and is often caused by material considerations. Those who leave, often lead complicated personal lives. Taking part in a mission is a way for them to escape from their family or relationships.

Of course, there are also those who have Rambo’s soul and are simply eager for adventure, but they are a minority. A military mission is a testing ground not only for Polish soldiers, but also for medical personnel. As Hippocrates put it: "You want to learn how to be a surgeon, go to war." But it would be better if we never had to use the science of war • and gain experience in combat.

PM

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ECOLOGY , NOT SELFISH INTERESTS

HENRYK KOWALCZYK, Minister of the Environment, talks to “Polish Market” about what environmental protection, air pollution and the energy industry, have in common.

Three months have elapsed since the end of COP 24, which was held in Katowice. In what way does Poland intend to comply with the provisions of the Climate Summit?

COP24 was a success. Negotiators from 196 countries and the European Union worked for two weeks on the Katowice package, which marks the implementation of the Paris Agreement. A whole range of issues was discussed, both fundamental ones and very detailed and technical matters, which make up a complex and challenging document. Among these are finances, transparency PM

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and adaptation. The final summit document, the Katowice Rulebook, was unanimously adopted by all the parties to the United Nations Convention on Climate Change.

I hope that thanks to this unprecedented event, Katowice will become a historic place in global climate policy, just like Kyoto and Paris have. From now on, the whole world is bound by the common rules of the game in the field of climate protection.

Specific objectives of climate policy need to be defined by the parties themselves, because the targets individual states set for themselves in this respect are their

CLEAN ENERGY

sovereign decision. COP24 has proved that it is possible to build a bridge between international solidarity and national interests. Sustainable economic development should be based on solutions which help to reconcile social, economic and environmental ambitions. Poland’s goals will primarily depend on the European Union's climate policy in this area. When it comes to energy, heating, transport and green technologies, there are numerous examples of modern solutions which enable the reduction of emissions and effective use of available resources. Many of these solutions have been developed by Polish engineers.

Polish companies have come up with a number of competitive environmental technologies which can be successfully implemented both in Poland and in other countries of the world. This country is also introducing a series of programmes aimed at reducing greenhouse gas emissions into the atmosphere, namely Clean Air and Energy Plus.

These programmes contribute to the reduction of low-level emissions through replacing old heating sources and building insulation. Poland has the potential to become a country which exports green technologies. We now need to use this potential in a skilful manner.

The Polish Electricity Association (PKEE) has published a report entitled "The Power Sector Loves Clean Air," according to which the energy sector has been overhauled and has taken numerous measures to prevent emissions. Is that really so?

In recent years, air pollution has attracted considerable attention from scientists and researchers from around the world. The reason is mainly that particulate matter in the air is accompanied by negative environmental, ecological and health effects. In recent years, the energy sector has undertaken a number of activities to reduce the environmental impact, in particular to cut the emissions of greenhouse gases and other substances into the air. This was caused in particular by the need to adapt to the stringent requirements of European Union legislation regarding harmful emissions. Two directives specify how to operate power stations: large facilities whose power is rated at over 50MW and medium-sized stations from 1 to 50 MW, to limit their impact on the environment. These facilities must meet best available techniques (BAT) requirements. These directives have already been introduced into Polish legislation. Under these directives, an integrated permit or a permit for energy facilities to release certain amounts of pollutants into the atmosphere, are required. Local government bodies and the Environmental Protection Inspectorate, which issue these permits, have full control over the activities of these facilities and can shape their impact on the environment. In order to meet the stringent emission standards, the energy sector has had to undertake the modernisation of heat-andpower generating stations. One must bear it in mind that PM

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POLAND HAS THE POTENTIAL TO BECOME A COUNTRY WHICH EXPORTS GREEN TECHNOLOGIES. WE NOW NEED TO USE THIS POTENTIAL IN A SKILFUL MANNER."

the transformation of the energy sector must be considered, and pursued, in the wider context of development objectives, taking into account synergies between the various United Nations conventions on sustainable development. Poland's involvement in the global climate policy reflects such activities.

The National Fund for Environmental Protection and Water Management implements programmes such as Energia Plus and District Heating. Can they help us to keep the air clean? Does Ministry of the Environment data show that the main cause of poor air quality are emissions caused by home heating?

One of the government's priorities is to improve air quality. Last September saw the launch of the Clean Air programme, which is aimed at individual households. The inadequate air quality in Poland is caused by low stack emissions from home heating and road transport. Thus, in addition to activities undertaken in the energy sector, it has been necessary to launch programmes to support the replacement of obsolete heating sources, and thermal improvements to 4,000,000 single-family houses in Poland. That’s what the Clean Air programme is all about.

This priority programme will not only help to protect the environment, but will also be beneficial for the national budget, thanks to savings made through effective energy management. In addition, I believe that it is also necessary to support the construction of central heating plants in individual estates and to connect buildings to municipal heating networks wherever possible. Programmes launched by the National Fund for Environmental Protection and Water Management are meant to play a sup• porting role.

PM

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THE ENVIRONMENT COMES FIRST ARTUR MICHALSKI, Deputy President of the National Fund for Environmental Protection and Water Management (NFOŚiGW), talks to Ewelina Janczylik-Foryś about the Fund’s activities geared toward protecting the environment.

This year the Fund celebrates its 30th anniversary. Are you tempted to take stock of the Fund’s activities in the field of environmental protection and water management over the past three decades?

The National Fund for Environmental Protection and Water Management (NFOŚiGW) is 30 years old, which means that the system of financing ecology-oriented projects has been in operation for three decades now. A few years after the fund was set up, it was joined by regional funds for environmental protection and water management and Bank Ochrony Środowiska (BOŚ). 30 years of the Fund’s operation means that a number of key projects have been implemented valued at over PLN 150 billion. Together with regional funds and BOŚ, it amounts to several hundred billion zlotys. A good example is the National Municipal Sewage Treatment Programme, which is 90% complete, under which 1,600 sewage treatment plants have been built or modernised along with 83,000 kilometres of sewerage. Polish power stations have also been modernised, including the Łagisza and Pątnów-Adamów-Konin plants. Now one of the priorities for the government is to improve air quality.

PM

Is the "Clean Air" programme, which is the brainchild of Minister of the Environment Henryk Kowalczyk, very popular?

Public interest is considerable. I believe that more and more applications will be submitted. Currently, households plan thermal improvements to builgings in a way that does not interfere with PM

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other projects, and is the most beneficial for the property owner. There is plenty of time left to implement this programme within the next decade, and the pool of funds is over PLN 100 billion, including tax breaks. It is true that the "Clean Air" programme was drafted thanks to the personal commitment and determination of the Minister of the Environment Henryk Kowalczyk. The "Clean Air" programme provides for a comprehensive modernisation of residential buildings, including in-house installations. It is meant for individual home owners and is to be implemented by 2029. Co-financing is available through subsidies, lowinterest loans or both, at the same time tax breaks are also available.

The anniversary is a festive occasion for the National Fund for Environmental Protection and Water Management. The "Clean Air" programme is your flagship undertaking and two new programmes "District Heating" and "Energy Plus" are being inaugurated as well. Could you tell us some more about these programmes?

The "Energy Plus" programme, which marks the consolidation of all existing energy and energy efficiency programmes, includes the full spectrum of financing options. The beneficiaries of the programme are entrepreneurs who want to reduce or eliminate harmful emissions into the atmosphere, reduce the consumption of primary raw materials and improve energy efficiency. In a nutshell, it encompasses measures meant to reduce the negative impact on the environment.

PM

CLEAN ENERGY Does this programme cover all entrepreneurs, no matter what activities they pursue, also energy companies?

Yes. It is a comprehensive programme for entrepreneurs. The idea is to adapt to environmental requirements, but also to improve the functioning of process lines and technologies to reduce the consumption of energy, heat and other resources, such as water.

PM

Where does the funding come from?

The budget is PLN 4 billion. Preferential 15-20 year loans from PLN 1 to 300 million are available (10% of the loan is refundable,) as well as standard commercial loans. Applications can be submitted by December 20.

PM

When will applications be considered?

As they come in. The pool of funding is large.

I don’t think that we fall short of expectations.

We want to do as much as possible to meet stricter emission standards. The spring and summer are good seasons for modernisation. Within this programme, we also take care of inefficient systems. Even if emissions are reduced by half thanks to modernisation, it will also be a significant success.

PM

What about the "District Heating" programme?

It is a pilot programme whose aim is to reduce harmful emissions into the atmosphere. It is addressed to companies which generate heat for central heating in municipal facilities and housing, in which local government bodies hold at least a 70% majority stake. At the same time, the total heat-generating capacity of a single installation should not exceed 50 MW. In this case, subsidies up to 30% of the target modernisation cost, and 20 year preferential loans from PLN 1 to 300 million, are available to applicants. 10% of the credit is refundable. Commercial loans on market terms are also available.

PM

You have mentioned inefficient systems. Can you explain what efficient and inefficient systems are?

In an efficient heating (or cooling) system, at least 50% of energy comes from renewable sources, or 50% of heat is waste heat, or 75% of heat comes from cogeneration, or 50% of heat comes from an energy mix. The issue of system efficiency is important because the central heating sector satisfies as much as 42% of demand for heating in Poland. The snag is, nearly 90% of district central heating systems are inefficient. Unfortunately, this is the case especially in smaller towns.

PM

PM

So that’s where the name “District Heating” comes from, the problem of inefficient systems concerns smaller communities. Small

towns cannot cope with central heating in the way that large cities can.

That’s right. In large cities with over 500,000 residents, heating is provided by 100% efficient systems. A lot of money has gone into it, including funding from the National Fund for Environmental Protection and Water Management.

Smaller communities seem to have been neglected. In small towns with under 20,000 inhabitants, efficient systems only cover 14% of the needs, and in 86% of cases the systems need to be modernised.

Do local authorities in smaller towns understand this problem at all? Are they ready to talk about it?

I hope that we will manage to explain how important and necessary the changes are, and that you should simply take advantage of this programme. In fact, heating modernisation involves technological and capital challenges.

That’s why the programme is subsidised, up to 30% of the overall cost. Besides, modernisation and expansion of the system could push up the prices of services, which would be passed on to the customer. We don’t want it to happen. We have estimated that there are about 130 heat generating companies in Poland. The loan is granted for a period of 20 years with a minimum interest rate. Taking into account the forms of financing - subsidies, loans and a 10% refund – it is realistic to expect that up to 40% of the entire cost will be refunded as part of the programme.

PM

And how do you assess the place of renewable energy sources in Poland’s energy policy?

Interest in renewable energy sources (RES) has increased significantly. A lot of applications have been received for EU funding. The total value of the submitted projects is PLN 3.5 billion. Regrettably, we don’t have enough funding available because we didn’t expect so much interest. The applicants are mainly entrepreneurs.

Most of these applications concern photovoltaics. It is a clear signal that by introducing a set of new measures, the Ministry of Energy has encouraged more entities to use renewable energy sources. The prospects are bright.

PM

The use of low-quality fuel is one thing, transport, which also causes pollution, is another. What about the development of electromobility?

The National Fund for Environmental Protection and Water Management as the operator of the Low-Emission Transport Fund, supports the development of electromobility. It is part of the Fund's activities as one of the ecology-oriented projects. We started the promotion of electromobility a few years ago by introducing it in public transport. The government "E-bus" programme is being implemented, as part of which PM

a factory of Polish electric buses is planned. The Fund has already declared its willingness to help in financing electric buses. A dozen or so of them already roll down the streets of Warsaw, but the needs are much greater. In addition to public transport, we cannot forget about personal electric cars. The challenge is to improve the infrastructure. Once a set of measures proposed by Minister of Energy Krzysztof Tchórzewski has been introduced, you will be able to drive an electric car all over Poland.

Thus we need to promote the need to introduce more charging stations. This will allow electric transport to become popular. Electric transport means virtually zero emissions and is therefore the most beneficial for the environment, especially when electricity comes from renewable energy sources.

You have mentioned quite a few programmes. As they say, when there’s a will, there’s a way.

We are able to finance almost all projects related to environmental protection, especially those concerning phenomena which negatively affect the environment. The Fund is an institution which is open to proposals concerning activities that are important for environmental protection. We are known for our desire to adapt to current needs and to meet public expectations.

PM

What to do to encourage entrepreneurs to pay more attention to harmful emissions? Can low emissions become the rule in industry?

Environmental protection is a must in present day realities. Taking care of the air we breathe, the water we drink, we manage waste, and pursue other ecology-oriented activities which stem from the need to observe legal regulations and meet standards and directives.

It is increasingly becoming part of our daily lives, both for ordinary citizens, and big and small businesses.

PM

Is smog only caused by large plants or do ordinary citizens who heat their homes add to the problem? Who is primarily responsible for air quality?

The issue of air quality has been discussed for a very long time. Many ventures related to air protection, have already been implemented, especially in large industries. More and more stringent standards mean that further measures need to be introduced. The number one target right now is to minimise pollution coming from individual homes, especially in smaller towns. That’s why the "Clean Air" programme is one of the most important large-scale projects being implemented in Poland.

• PM

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CLEAN ENERGY

POLLUTANT EMISSIONS FROM THE POWER SECTOR AND ITS CLEAN AIR MEASURES REPORT 2018

L

ast year, the Polish Electricity Association (PKEE), an organisation of the electrical power industry, published the report “The Power Sector Loves Clean Air.” The problem of air quality is very serious.

Most of the blame for poor air quality is put on the power sector, which in recent years has spent a huge amount of money to bring emissions down to a minimum. The PKEE published the report being aware of the need to strengthen information and education activities with respect to the problem of air quality and smog. The report is designed to change the public’s mentality, shape the right civic attitudes and increase the awareness of people living in Poland of matters concerning energy and environmental protection. It is not the power sector, but the burning of low-quality solid fuels for the purpose of household heating that contributes the most to the poor air quality in Poland.

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CLEAN ENERGY Emissions standard (mg/m3)

POLLUTANT EMISSIONS FROM THE POWER SECTOR AND ITS CLEAN AIR MEASURES Power sector emissions result from the combustion of solid, liquid and gaseous fuels in thermal power stations. In the case of thermal power stations, which are the main type of generating plants in the national power grid, pollutant emissions are strictly controlled and flue gases released to the atmosphere have to be clean enough to meet rigorous emissions standards required by law. The standards, called emissions limit values, define the maximum mass of such pollutants as sulphur dioxide, nitrogen dioxide and particulate matter per cubic metre of flue gas. It is worth stressing that the standards are tightened every several years in response to the scientific and technological progress in emissions controls. Over the past 15 years the power sector has made enormous progress in cutting emissions. Changes to the particulate emissions standard for coal-fired power stations can be illustrated by a chart.

As shown in the chart, in the 2005-2021 period particulate emissions from such a power station will decrease 30 times and by now they have already dropped 18 times. The situation is similar for other pollutants. In the case of sulphur dioxide, the limit value was 2,350 mg/m3 in 2005 while now it is just 200 mg/m3, which represents a nearly twelve-fold decrease. The changes to emissions standards have resulted from the need to harmonise the national legal framework with EU directives.

One of the directives most important for the power sector was the Large Combustion Plants Directive (LCP, in force as of 2008). It was superseded by the Industrial Emissions Directive (IED, in force as of 2016). It is the IED that imposes the obligation to regularly review emissions standards to adjust them to the Best Available Techniques (BAT) at least every eight years.

The result is the latest limit values for pollutant emissions to enter into force in 2021.

This significant reduction in emissions in the power sector is possible thanks to the thorough modernisation of generating units and investment in primary and secondary emissions reduction methods.

The primary methods include all modifications to the combustion chamber that ensure correct combustion process parameters, like for example temperature

and air quantity, and feeding substances reacting with the pollutants to the combustion chamber. The use of secondary methods, including deep flue gas cleaning processes in such equipment as highly efficient electrostatic precipitators, wet flue gas desulphurisation and catalytic NOx reduction, make it possible to achieve the emissions levels required by the regulations. At present, each power station in Poland is provided with such highly efficient flue gas cleaning installations.

The anti-smog tariffs are one of the elements in the wide range of measures taken by Polish power companies to fight smog.

350

300

250

200

150

100

50 The sector of industrial power stations actively supports initiatives aimed at improving air quality in Poland. Apart from investment in modernising existing generating units and retrofitting them with flue gas cleaning technologies, one should mention a growing share of energy from renewable sources, like wind farms, solar power stations, and biomass and biogas power plants. Unfortunately, all these measures do not contribute too much to air quality improvement because it is low stack emissions that are the main source of bad air. The limit values for particulate matter are exceeded primarily in winter and the main reason is the burning of poor quality fuels in inefficient household heating sources.

Anti-smog tariffs, offering access to “cheap electricity� to consumers who discontinue burning low quality fuels in their stoves and switch to electric heating, are one of the instruments to counteract low stack emissions. The tariffs have the symbol G12as. They offer very low rates for electricity and its distribution between 10 pm and 6 am. This enables the use of electric storage heaters, which consume electricity at night when the rates are low, accumulate thermal energy and release heat when needed. Calculations made by the Ministry of Energy for annual costs of household heating using various heat sources indicate that

0 2005

2008 (LPC)

2016 (IED)

2021 (BAT)

Changes in limit values for particulate emissions from a coalfired thermal power station with a rated thermal input of 400MWt in 2005-2021

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thanks to the introduction of the anti-smog tariffs electric heating is cheaper than heating with the use of heating oil and may be competitive to gas and coal heating.

An important advantage of electric heating is that it is practically maintenance-free and safe compared to heat sources with a combustion chamber (no risk of explosion or carbon monoxide poisoning). Preferential rates for electric heating are an attractive alternative to environment unfriendly forms of heating. It is an effective tool in fighting air pollution. For instance, a substandard manually fed coal-fired stove emits around 404 grams of particulate matter per one GJ of heat used in the household. In the case of a woodfired fireplace, the value is 672 g/GJ. Average heat consumption by residential premises is around 0.5 GJ annually per square metre. In reports on the implementation of air quality protection programmes, the PM10 emissions levels for electric heating and district heating are 0. However, taking into account the volume of electricity generated in industrial power stations and PM10 emissions from these sources, it can be estimated that PM10 emissions per unit of thermal energy are at 45g/GJ. The new solution also fits in with the electromobility development programme. It offers users of electric vehicles an opportunity to charge their vehicles at a lower price between 10 pm and 6 am.

The new tariff is designed to encourage households to replace their outdated stoves, heat their homes at night with the use of electricity and drive electric cars. The offering is targeted at: • residents of small towns, villages and suburbs of large cities who use various types of stove heating, in many cases in ways harmful to the environment and human health; • consumers using electricity to charge their electric vehicles.

The anti-smog tariffs are one of the elements in the wide range of measures taken by Polish power companies to fight smog. The goal of these efforts is to support the national programme for improving the condition of the natural environment. The programme includes conducting information and education activities, developing a rich offering of environment-friendly heating systems, supporting persons who have decided to replace their outdated stoves, and cooperating with local governments. The Polish power sector bets on developing diverse offerings so that every consumer can have a heating system • tailored to their needs and wallets.

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What transformation has the power sector undergone in terms of air pollution. Does the power sector really “love” clean air?

JANUSZ ZYŚK, Dsc. Eng, Faculty of Energy and Fuels, Department of Sustainable Energy Development, AGH University of Science and Technology

P

oland has been struggling with the problem of poor air quality for years. Exceedances of limit values are particularly high in the case of particulate matter and benzo(a)pyrene. The main source of this pollution is the inefficient combustion of poor-quality solid fuels in high-emission household stoves. The household sector contributes around 40% to the total amount of particulate emissions in Poland. In contrast, the power sector – power stations, thermoelectric power stations and heat generating plants - now generates less than 10% of the total particulate emissions, thanks to consistent measures taken over many years to reduce emission levels. Due to a relatively small amount of particulate matter it emits and high chimneys, the influence of the power sector on ambient air quality is small. It is worth noting that since 1990 emissions of the main air pollutants from this sector have been cut by over 80% for sulphur dioxide, total particulate matter by 95%, and PM10 and PM2.5 by over 70%, including polycyclic aromatic hydrocarbons, of which the most dangerous is carcinogenic benzo(a)pyrene. Emissions of heavy metals, like lead and cadmium, have also decreased. The power sector is the leader when it comes to emissions reductions. In the same period, particulate emissions from the household sector decreased by around 20% while emissions from road transport rose by one third.

This sharp reduction in emissions was possible because the sector was able to meet emissions standards, which were tightened every several years. It is worth noting that in 2005-2016 particulate emissions standards for medium-size coal-fired generating units were tightened as many as 17 times. The new emission standards which are to become effective in 2021 in line with the BAT conclusion have lowered the limit values even further for new generating units: to as little as 5mg/m3 of flue gas. This level is 20 times lower than the present limit value set by the EU for the most modern solid fuel-fired household boilers. As a result, measures aimed at redirecting solid fuel combustion, including coal combustion, from individual household boilers to heat generating and heat and power generating plants through the development of district heating are very important from the point of view of air quality and human health. Let us remember that the combustion and emission processes in large generating sources are strictly controlled. In highly efficient combined heat and power plants carbon dioxide emissions are also significantly reduced.

CLEAN ENERGY

ARE WE IN FOR AN OVERHAUL? The National Energy Summit (OSE Gdańsk) is to be held in the city for the seventh time at the beginning of April. It has already become a fixture in the calendars of company managers from the broadly conceived energy sector, as well as industry watchers.

T

he central theme of the conference "Energy for Economy - Economy For Energy", should appeal to all participants. It clearly states that there is no prosperous economy without a strong energy sector. One is strongly linked with the other. During a plenary session to be attended by representatives of key institutions responsible for Poland’s energy and economic security, politicians, economists and representatives of business and science, will take up the subject of the country’s energy policy until 2040. Panellists will compare priorities set by the EU with the strategic goals of the Polish energy industry. Economic and energy independence, reliability of raw materials supplies and the stability of international relations, are the main topics which will be discussed by individual panels. When it comes to energy, one cannot forget about new technologies and new market trends. Representatives of energy groups must also deal with such issues.

Why has such a broad range of issues been included in the programme of the conference?

The planned debates are to be devoted to both energy in the traditional sense, and renewable energy and central heating. “Polish Market” has asked Krzysztof Karas, President of the European Business Centre, for a comment.

“The National Energy Summit OSE Gdańsk provides an opportunity for a broad discussion on all areas of energy, including traditional sources such as coal, but also district heating, renewable energy, fuel and the gas market. Only against this background can you assess the development potential of the sector, follow the changes that have taken place in recent years and discuss development directions, upstream and downstream

policies. The summit is also an opportunity for discussions between producers, energy customers, local government bodies, industries which supply the sector with raw materials and the academic community. The organisers’ intention is to create a platform where you can exchange opinions, present innovative solutions and confront different ideas regarding the future of the Polish energy sector. The participation of foreign guests offers a chance to analyse Poland's position compared to neighbouring countries and learn about solutions that allow these countries to pursue sustainable energy policies.”

More and more emphasis is being placed on activities geared toward the reduction of harmful pollutants. Energy groups are required to meet specific standards. It seems that successive programmes introduced by the National Fund for Environmental Protection and Water Management, addressed to entrepreneurs like Energia Plus and District Heating, meet EU requirements.

What is the current situation of the energy sector and what are the challenges it faces? How does district heating fit into Poland’s energy policy? “Polish Market” puts these questions to a representative of the business world, Jarosław Głowacki, President of PGNiG Termika SA. “The most important goal of Poland's energy policy is to ensure energy security, while maintaining the competitiveness of the economy and reducing the impact of energy production on the environment. PGNiG Termika SA, which is part of the PGNiG Group, places particular emphasis on responsible business practices, both vis a vis residents and the natural environment. The great challenge and investment effort for the entire district heating

sector is to meet strict environmental protection standards and to modernise and replace obsolete installations. In this matter we use advanced environment-friendly technologies, we look for fuels which are less harmful for the environment, and we focus on the development of cogeneration as the most effective method. Not forgetting about renewable energy sources. Only sustainable development of all these elements will allow us to build modern and high-quality district heating systems. PGNiG Termika and its subsidiaries,- whose mission is the development of cities and which have the ambition to become leaders in district heating sector transformations - actively participate in the process of transforming and developing district heating in Poland. The company is looking for projects in the energy sector which involve the development of district heating systems, their modernisation and support for local communities. We are currently implementing an ambitious project to build a modern gas and steam unit at the Elektrociepłownia Żerań heat and electricity generating station in Warsaw. We have an exciting future ahead of us and we will definitely contribute to the development of the district heating and energy sector in Poland.”

At the National Energy Summit OSE Gdańsk you can find out more about the state of the Polish energy industry and the direction it is likely to take in view of decisions made by politicians and energy companies.

Sustainable development, innovation and modern technologies will be discussed at great length. Ways of building a competitive advantage not just in the energy industry, but also in other branches of the econo• my, will also be explored.

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CLEAN ENERGY

ENERGA’S

Energa's Bystra Wind Farm

ENERGY MIX

Clean energy is a challenge not just for the energy industry. What investment projects should be pursued to produce electricity from available resources safely, reliably, and regardless of weather conditions?

Jan Dempc

"

Clean Energy" is a programme implemented in various areas of the energy industry. It encompasses a more efficient use of fossil fuels, more ecofriendly high-efficiency conventional power units, as well as alternative, renewable energy sources. What is needed is an energy mix, with a sufficient share of renewable energy, as well as favourable conditions for the development of prosumer energy, the creation of energy clusters and an ambitious programme for the development of electromobility. The Energa Group plays an active part in this energy development programme.

Through the activities of the Group's companies, important goals of the Polish power industry are implemented - safety and reliability of electricity supplies, network stabilisation, protection against blackouts, as well as care for the natural environment.

Energa is implementing an innovation strategy for the 2017-2020 period with an eye toward 2025+. The Group’s companies and R&D units provide back-up for the development of innovative solutions and technologies that build the competitive advantage of firms and translate into an increase in their value.

Energa Group R&D spending is to grow steadily, to reach 2.5% of EBITDA by 2025. On average, Energa earmarks a sum of PLN 40 million

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for this purpose a year. Under the EU climate and energy policy, by 2020 the average share of energy coming from renewable sources (RES) is to reach 20%. Poland is expected to produce 15% of its energy from RES, subject to a set of conditions. The share of renewable energy in the domestic energy mix is growing. 30% of electricity produced by the Energa Group comes from RES, the highest among Polish energy groups, compared to the entire volume of generated energy.

HOW TO DEAL WITH ENERGY SHORTAGES AND SURPLUSES?

Demand for electricity is growing. What to do to prevent blackouts? How to balance power generation capacity against demand? Currently, about 40% of power generation in Poland takes place within the electricity distribution system, four times more than 20 years ago, thanks to the growing use of RES, mainly wind and solar energy. However, the amount of electricity produced by photovoltaic panels and wind farms fluctuates, so you need to manage surplus energy whenever its production exceeds current demand.

In northern Poland, where thanks to favourable conditions, wind farms have been developed to the largest extent, Energa introduces innovative solutions aimed at

improving the flexibility of the distribution system. A pilot scheme has been implemented in the Puck region involving energy storage, connected to the medium voltage network. Poland’s first hybrid electricity storage facility is being built at the Bystra Wind Farm near Pruszcz Gdański, as part of the NEDO project carried out by the Energa Group, Hitachi and PSE. This project is part of a prototype system that optimises the operation of power grids, partly through improved management of wind power generation. The use of the SPS (Special Protection Scheme) automation system is to enable the testing of various storage technologies. It is necessary to develop modern energy storage facilities to increase the share of RES in energy production and adjust its scale to the current needs of the economy.

What to do when demand for electricity is too high at peak time? In such cases, new technologies such as DSR play a significant role to reduce power consumption at the operator's request. Enspirion, an Energa group company, is the DSR leader in Poland. It currently manages approximately 700 MW of energy. Working with industrial plants which can shift part of their electricity consumption to other times of day, it is able to help in balancing the national energy system.

CLEAN ENERGY FOR THE BENEFIT OF RES

To continue to develop renewable energy, a stable energy base is needed, relying on conventional energy sources. Investing in coalfired units does not mean moving away from renewable energy. A new conventional power station in Ostrołęka, along with several others which have recently been built, will form the foundation of the energy system, which will enable the future development of power generation based on RES. A similar path was successfully adopted in Germany, where a stable base using coal and gas was built, and where the renewable energy sector is developing. This strategy, which on the one hand ensures energy security, and on the other enables the introduction of modern technologies involving the use of available RES, is pursued by the Energa Group. Highly efficient generating units are already replacing obsolete units which generate harmful emissions. The steam-powered conventional power station in Ostrołęka, designed for supercritical parameters, with a capacity of approx. 1000 MWe, will achieve the highest net efficiency in Poland at 46%, compared with 33% in other plants. This guarantees 2530% lower CO2 emissions for each 1 MWh of electricity. The Ostrołęka C power station will feature maximum unit flexibility, short startup time, and will manage high and low loads.

These are very important parameters in view of the planned development of renewable energy. The growing use of renewable energy means that you also need to invest in flexible conventional power units which are able to react quickly when the flow of energy coming from RES is interrupted. The Ostrołęka

C plant is necessary to secure sufficient system reserves by 2025. Significantly, such investment projects enable the development of RES.

CARING FOR THE ENVIRONMENT

The Energa Group strengthens its leading position in terms of the share of RES in the overall energy mix. The currently installed power generation capacity in the Energa Group's power stations, is about 1.34 GWe. Within the structure of energy production in individual stations, the level of green energy is very high.

The development of RES is one of the foundations of Energa's strong position in the Polish energy sector. It is also an example of a skilful blend of business goals with care for the environment. In its energy mix, Energa uses a full range of RES such as water, wind and solar energy. It also makes use of resources independent of weather conditions such as biomass and hard coal coming from Polish mines. The Energa Group's strategy assumes further development of renewable energy, including wind and water. In line with the adopted strategy, the Energa Group intends to build a hydroelectric power station at the planned Siarzewo dam on the Vistula River. A new wind farm is to be built in the Przykona commune, Wielkopolskie province. The Energa Invest company has started the implementation phase. The farm is one of the projects thanks to which the Energa Group intends to implement its long-term investment strategy. By 2020, installed capacity involving RES is to grow by at least 50 MWe. Energa is also considering a photovoltaic power plant together with an energy storage facility in the area. Photovoltaic power stations

are to be implemented as part of the strategy for the development of innovative environment-friendly technologies. Energa now operates two solar farms, including one of the largest installations of this type in Poland, the PV Czernikowo power station near Toruń, with a capacity of 3.77 MWp. A 1 MWp photovoltaic installation at the Ostrołęka power station is also being considered. An innovative pilot project is being implemented by Energa Wytwarzanie. It involves the installation of floating photovoltaic panels at the Łapino hydroelectric power station. These installations are designed to explore the possibilities of improving their efficiency and increasing the level of generated energy. This is the first solution of its kind in Poland. Preparations are underway to build a gas and steam unit in Grudziądz with a capacity of 450-750 MWe. The implementation of this investment project will significantly increase the power generating potential of the Energa Group. It will complement energy production from RES, and reduce the impact of energy production on the natural environment. *** It is vital to increase the use of renewable energy both to ensure better air quality and to diversify energy sources. However, energy coming from RES is difficult to manage, in the absence of cheap and efficient energy storage methods. Thus a compromise should be sought, whereby high-efficiency conventional units should be developed in parallel, which will allow a further increase in the share of renewable energy.

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Energa's water power station in Borowo

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CLEAN ENERGY

TO BE

GREEN TOMASZ BUJAK, Vice President of the G-Energy Board, talks to Ewelina Janczylik-Foryś.

The company was founded in 2011 and its operations are based, among others, on the sector of renewable energy obtained from natural sources. How is your company coping in what, some argue, are tough times for renewable energy?

I have to admit, it is not easy. As a private business, we must take profit into account.

It is true that I can now notice more interest in RES than in recent years. I think it is influenced by the price of electricity, as well as the growing price of green certificates.

PM

What exactly do you specialise in? Wind power, solar energy or biomass?

At the end of 2013, the company stopped wind power production by selling existing windmills and postponing the decision to purchase new ones. It was too risky to conduct activities in this area, which was confirmed in the next few years. We were proved right when the price of green certificates decreased by 92% as of 2011 to reach the level of roughly PLN 22. Currently, we are mainly interested in solar energy. We are looking for energy sources which will allow us to make profit without subsidies and a feed-in-tariff.

PM

In line with EU law, by 2020 renewable energy in Poland must account for 15% of total energy consumption. Is this goal realistic?

Only if we manipulate data to fulfil the green energy criterion. In fact, we are unable to reach the 15% level of clean energy.

PM

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How do you assess recent amendments to the Renewable Energy Act? Do you think that the fixed purchase price in FIT / FIP systems is 90% of the reference price?

It is good that something is happening in the area of renewable energy sources. Prosumers and owners of small installations stand to gain. But the question of price is not the only solution to existing problems, not quite what entrepreneurs have expected.

PM

What are their expectations?

Above all, security of financing. Most financial institutions are withdrawing from financing RES due to current instability, i.e. changes in regulations and considerable price fluctuations. What is crucial is comprehensive and long-term support for investment financing.

PM

How can you solve this problem?

The government, acting via BGK bank, may offer better guarantees for such investments as well as the broadest possible implementation of the RED II directive.

PM

What’s the golden means?

It is a matter of guaranteeing the stability of the law, regardless of who’s in power.

It is important that support should be provided for renewable energy. Having said that, I can notice a favourable change in public attitudes toward RES. There is now talk not only about photovoltaics, but also about green energy in general and the need PM

to introduce it. Just a few years ago it wasn’t so obvious.

Solar installations are of interest not only to institutions, but also to home owners.

It is even possible to obtain subsidies from various programmes. What else is needed besides financing?

Ordinary citizens must become aware of the benefits. The example of photovoltaics shows that even given targeted programmes to partly subsidise this type of investment, not everyone was interested in it. But this is changing the promotion of solar energy, PM

“

CLEAN ENERGY

WE GET MORE AND MORE SUNSHINE, ENOUGH TO PRODUCE ELECTRICITY. IN ADDITION, A SOLAR PANEL DOES NOT NEED DIRECT SUNLIGHT TO PRODUCE ENERGY, BUT GENERALLY LIGHT OF SUFFICIENT INTENSITY. "

combined with current prices, has made investing in photovoltaic systems an interesting proposition. Solar energy is energy coming from sunlight, clean energy.

It is wrong to identify photovoltaics with direct sunlight. There is a stereotype in Poland that we are not a Mediterranean country, where the sun shines almost all year long, so investing in solar energy is not profitable.

We get more and more sunshine, enough to produce electricity. In addition, a solar panel does not need direct sunlight to produce energy, but generally light of sufficient intensity. We have plenty of sunny and slightly overcast days in Poland, for at least ten months of the year, so we can not only consume electricity but also make money from it, too. A good example is the UK, which is normally associated with rain and fog. It has become a solar energy market in recent years, with a significant share of solar energy in the national energy mix. Imagine that each year, 1-2 GW installations are built there, recently also without government support. According to Bloomberg, by 2021, the capacity of photovoltaic power plants will increase there to around 16 GW. In Poland, it was less than 149 MW at the end of 2018.

Do you look beyond green energy?

We have decided to venture into natural gas, which is also treated as clean energy.

Gas is a major addition to the energy mix. It is set to play an important role in the energy PM

transition in the coming decades. It can certainly contribute toward the zero carbon dioxide emission goal. Many Polish households are waiting for gas. A number of towns are not yet connected to the gas network, and this energy source has a strong impact on the country's energy security.

Does it?

The problems are huge and the numbers are staggering. About 50% of Poland is not connected to gas. It takes about 5-6 years to build a pipeline. That’s the problem for an average Pole. That's why G-Energy has given up windmills and started designing and building pipelines, gas networks and connection points. Residents are also concerned about climate change and the elimination of smog which is harmful. Awareness of this problem is growing, not just in cities.

PM

What is the reason behind it? No financing?

There has been growing neglect for years.

Of late, there has been more talk about gasification. It is a colossal undertaking. In some regions there are no installations, and those that are there, often have limited transmission capabilities. Incidentally, natural gas is a renewable fuel which renews itself every 150-200 years.

PM

What are your plans for the near future?

We want to support the observance of the waste management law. We have come up PM

with a technology which enables you to dry sewage sludge in what are known as subcritical conditions. We have been conducting research on this topic for several years.

In Poland, we have enormous amounts of unused sewage sludge, which we do not know what to do with. Since 2016, the EU waste management law has been in force, various kinds of waste now have a label. The recipient must dispose of waste in an appropriate manner, taking care of the environment. Our technology provides secondary fuel, which is, despite the lack of classification, a biofuel. We know that we are going in the right direction, as evidenced by the signed letters of intent with two cement plants which are interested in our product.

This fuel already exists, but in reality, the technology will be commercialised within two years. I believe that this project is more important than green energy. Poland can deal with RES. And in the case of waste and sewage sludge, we are facing a huge problem. We tend to notice it only when waste, which is illegally imported into Poland, is set ablaze.

I can see that you have ecology at heart.

Each of these projects is guided by environmental concerns.

You can build a business doing something cool and socially responsible. It does not matter how much money you make, but how you earn it.

• PM

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INDUSTRY

BUSINESS GRASPS HOW CRUCIAL HEALTH AND SAFETY IS Until recently, Polish employers did not seem to cope very well with having to provide workers with a couple of litres of water a day. In many industries, protective clothing and safety standards used to be treated as a necessary evil at best, both by many employers and employees themselves. That is luckily in the past. Companies from the SME sector, which found it the most difficult to adapt to European standards, have followed the example of the giants of Polish industry which are setting very high standards.

N

umerous training sessions, publications, growing legal awareness, and also experience gained by Polish economic migrants abroad, make Poland a more friendly place to work in.

The improvement of working conditions in Polish plants is also influenced by a low unemployment level which oscillates around 6%. Employers realise that they cannot retain an employee through pay rises and bonuses alone. So they improve working conditions by offering not only statutory minimum safety, but also above-standard comfort. However, safety is the number one challenge, and leading companies are outperforming each other in creating the most ingenious forms of training and assistance.

POLISH GIANTS SET AN EXAMPLE

Since it operates in a sensitive industry from the safety point of view, KGHM S.A., one of the largest Polish companies, pays particular attention to health and safety issues. In the Rudna Mine, for example, a regular Safety Week is conducted. Last year, workers received a compact leaflet on health and safety during the Safety Week. The leaflet, which was designed in the form of a concertina and printed on hard, varnished paper, revolved around two issues: first aid information and an ABC of how to behave once an incident has occurred at the bottom of the mine. “Our employees are familiar with first aid, because we conduct regular training in this area, but we have noticed that in stressful situations, a person acts completely differently. They forget

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many things,” says Łukasz Buczkowski, health and safety inspector at the Rudna Mine.

ANTONI PIETKIEWICZ, PRESIDENT, SEFAKO POWER BOILER MANUFACTURER

Under existing legal regulations, as well as in line with the philosophy of socially responsible business, the employer is obliged to steadily increase the level of safety and improve working conditions, and thus to earmark often considerable funds for this purpose. There are also other reasons why it is in the interest of a well-managed enterprise to continuously improve labour conditions to raise the level of employee safety. Companies operate in a competitive environment, which is why they need to constantly improve their job offer. In 2018, when the labour market turned into an employee's market, in order to pursue employment policies, companies needed to come up with an attractive job offer to effectively shape the structure of human resources

INDUSTRY adapted to the needs of production processes. An important component of an attractive job offer, in addition to attractive wages and a rich social package, are comfortable and safe working conditions. An analysis carried out at Sefako shows a very strong correlation between improved technical quality and timely performance with improved working conditions and safety. In particular, in 2018 the accident rate dropped by 50% as compared to 2017, noise emissions decreased and lighting in production halls was improved, which contributed to an increase in efficiency from 90% in 2017 to 104% in 2018. The number of complaints went down accordingly. The conclusion is obvious: investment in safety and the improvement of working conditions is the employer's duty and it lies in his interest.

FEWER ACCIDENTS

Market data show that accidents cannot always be avoided.

Initial Statistics Poland information regarding the accident level in 2018, testifies to improved safety, but the increase seems fairly insignificant. It also confirms that there are still considerable reserves on the Polish market in this respect.

So what is the health and safety situation like in a nutshell?

In the period from January to September 2018, the number of injured parties reported in work accidents totalled 55,288 and was 1.5% lower than in the corresponding period of 2017.

The number of those injured per 1,000 workers (the accident rate) also decreased from 4.37 in the first three quarters of 2017 to 4.18 in the corresponding period of 2018. According to the Statistics Poland "Working Conditions in 2017” study, the number of people working in hazardous conditions per 1,000 workers, is constantly decreasing. Does this mean that work in Poland, regardless of the industry, is safe, or at least it does not put lives in danger?

FATAL CASUALTIES

Regrettably, it is not the case. In 2018, fatalities accounted for 0.2% of all accident victims. This means a decrease by as much as 9.5% in the number of victims as compared to the corresponding period of 2017. The number of cases involving serious injuries accounted for 0.6% (7.7% less), and less serious injuries for 99.2% (1.5 % less). One needs to wait for data concerning the entire year, but the first conclusion can already be drawn: there are only slightly fewer accidents, but the number of those with the worst injuries has decreased here the improvement is quite significant.

“

MORE WORK MEANS THAT MORE ACCIDENTS MAY POTENTIALLY OCCUR. THUS, IF YEAR-ON-YEAR STATISTICS CONFIRM THE DOWNWARD TREND IN THE NUMBER OF ACCIDENTS WHICH OCCURRED BETWEEN JANUARY AND SEPTEMBER 2018, IT WILL BE POSSIBLE TO TALK ABOUT SUCCESS."

JULIUSZ BOLEK, CHAIRMAN, COUNCIL OF DIRECTORS, BUSINESS INSTITUTE

In general, it is difficult for me to imagine an entrepreneur who would ignore health and safety rules at work. Of course, some difficulties and cost are involved. However, if you fail to observe the rules, the result is similar cases to failure to comply with traffic code rules. However, the consequences are more serious for the entrepreneur. Apart from direct losses related to the consequences of non-compliance with health and safety rules, it may also negatively affect relations with employees and the general atmosphere at the workplace. This, in turn, may lead to even more serious consequences, such as lowered motivation, increased staff turnover, and hence additional costs associated with the recruitment and training of newly hired employees. Failure to comply with health and safety rules also leads to a serious loss of image, which can cause an outflow of customers. In extreme cases, when incidents occur resulting in damage to health or loss of life, this may lead to significant penalties and the need to pay compensation. Sometimes a company can go bankrupt when it neglects health and safety rules. At the beginning I mentioned that the consequences may be more serious than in the case of breaking traffic code rules, but in fact, they may be more like a tsunami, which is impossible to predict. Observing health and safety rules and taking care that all processes proceed according to the book is common sense.

RAPID GROWTH

Taking into account Poland’s rapid economic development, with last year’s GDP growth amounting to as much as 5.1%, the reduction of the overall incident rate by 1.5% has an additional dimension. More work means that more accidents may potentially occur. Thus, if year-on-year statistics confirm the downward trend in the number of accidents which occurred between January and September 2018, it will be possible to talk about success. Data from the last quarter of 2018 are important because in November 2018, production in particularly accident-prone industry was 4.7% up on the corresponding period of 2017, and construction and assembly production grew by 17.1%. Most accidents occur in this particular industry.

SAFEST SPOTS

According to Statistics Poland data, between January and September 2018, the highest accident rates were recorded in the following provinces: Dolnośląskie (5.25), Opolskie (5.10), Warmińsko-Mazurskie (5.08) and Wielkopolskie (4.94). Work safety was the highest in the following provinces: Mazowieckie (2.83), Małopolskie (3.19) and Podkarpackie (3.89). It is clear that there are fewer accidents in places where business most willingly invests in modern • technologies and a creative economy.

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INDUSTRY

KGHM MINERS ARE SAFER In 2017, KGHM Polska Miedź noted a drop from 370 to 300 in the total number of work accidents, calculated on a year-on-year basis. The number of mine accidents decreased the most.

T

he number of those injured in work accidents in KGHM Polska Miedź mines, reached the level of 235 in 2017, compared to 318 in 2016 (-83).

The majority of accidents (about 98%) involved minor injuries, and their main causes were: loss of balance by workers, contact with moving / stationary objects, rock falls and injuries associated with the use of work tools.

60% IMPROVEMENT

In 2017, the number of work accidents resulting from a high threat from the rock mass decreased significantly. Compared to 2016, the number of those affected was down by 60.4%.

In 2017, the LTIFRKGHM performance index (Lost Time Injury Frequency Rate KGHM) i.e. the total number of work accidents * in relation to 1,000,000 million work hours by employees of the KGHM Polska Miedź technological chain, decreased by approx. 18% as compared to 2016. It stood at 10.4 (2016 = 12.7) and at the same time it was 44% lower than in 2010.

WORK SAFETY MANAGEMENT SYSTEM

The life and health of employees, as well as broadly conceived security, ranks first in the value hierarchy of the KGHM Polska Miedź Group, according to the company's top management. The company has set high standards in the area of occupational health and safety

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that apply to both company employees and entities which provide services within the area of KGHM operations. Each of the company's branches has implemented a work safety management system in compliance with binding rules and regulations.

HAZARD IDENTIFICATION

Potential hazards have been identified for all jobs. The company has assessed the occupational risk and updates it on an ongoing basis. Constant monitoring of the work environment is carried out and periodic reviews and assessments of possible hazards, equipment and technical inspections, as well as required technical tests and approvals, are carried out.

Employees undergo regular training and constantly improve their qualifications.

HEALTH AND SAFETY IMPROVEMENT PROGRAMME

For many years, KGHM has been taking actions aimed at steady improvement in the area of health and safety, ongoing identification of potential hazards and constant search for improvement opportunities. In previous years, these concerned technical culture and systemic solutions in particular, i.e. the implementation of occupational safety management systems, which are currently being improved.

Since 2014, KGHM has been implementing a long-term Health and Safety Improvement Programme, enriching it with new initiatives. •

WAYS TO LIMIT EMPLOYEE PARTICIPATION IN A HAZARDOUS PART OF THE PRODUCTION PROCESS 1. Expanding the use of automation for the crushing of oversized excavated material with the use of the URB / ZS-3 device in underground excavations of copper ore; 2. Implementation of new solutions in the automation of anchoring mining excavations and protecting operators from injuries caused by falling rocks; 3. Development of a warning system to inform machinery operators about the possibility of collision with other machines and / or people; and of a solution enabling the location of workers in excavation zones, in particular in critical situations.

4. Development and implementation of an innovative, comprehensive training system for self-propelled mining machinery operators to ensure their safe and effective work in underground excavations in copper mines.

INDUSTRY

The company intends to carry on the implementation of a longterm programme "Zero accidents for personal and technical reasons, zero occupational diseases among our employees and contractors.” “Man and the Environment” is one of the priority areas in the new KGHM strategy for 2019 - 2023. Under its ambitious provisions, the following indicators are to be improved by 20% over the next five years: LTIFR (national assets) and TRIR (foreign assets) * 1LTIFR (Lost Time Injury Frequency Rate) total number of work accidents in relation to 1,000,000 hours of work by employees involved in the KGHM Polska Miedź technological chain. (Work accident as defined in the Act on work accident and occupational disease insurance of October 30, 2002 – Journal of Laws 2002, No. 199, item 1673 with amendments)

FOUR KEY AREAS OF KGHM OPERATIONS Initiatives are grouped in four key areas - attitudes, education, work environment and health. They are successively implemented and supplemented with new forms of activities aimed at improving the safety culture in KGHM Polska Miedź.

Among the most important activities recently carried out in the areas of attitudes, education and health, one should mention the following: - The implementation of a uniform standard of professional adaptation of new employees in the company's mines; - Extending the scope of corporate communication in the health and safety area through staging reconstructions of works accidents, and producing video guides devoted to critical technical operations; - The identification of basic problems in the area of safety culture and drafting of proposals for corrective actions; - Pilot implementation of the Safety Passport in the Polkowice – Sieroszowice mine; - The consistent implementation of measures aimed at preventing work under the influence of alcohol or intoxicants (about 190,000 inspections in the first quarter of the year.) In 41 cases employees were prevented from jeopardising the safety of other employees. In 2017 this concerned a total number of 256 cases; - The implementation of internal audits at the company's branches carried out

by Health and Safety services;

- Informing workers in an accessible way about hazards in the work environment, their relationship to human behaviour and methods of dealing with these problems, through numerous articles, infographics and information materials on industrial hygiene and safe behaviour at work; - Completion of the first edition of the "Efficient worker in a difficult work environment" programme for all mines regarding fitness, agility and obesity. The programme was launched last December; - The implementation of Operating Procedures regarding assistance to those injured in work accidents, in partnership with key medical institutions which specialise in the treatment of mining injuries; - The implementation of comprehensive psychological care for company employees; - Completion of research carried out by the KGHM Cuprum Department of Applied Psychology and Preventive Health in the area of what is known as age management for employees of KGHM smelters; - Testing new health prevention solutions, including respiratory masks and hearing protection equipment for KGHM employees.

In addition to a number of investment and modernisation projects aimed at the elimination or curbing of workers’ exposure to hazardous, harmful and onerous factors in the work environment, KGHM Polska Miedź implements a whole range of research and development activities aimed at reducing worker participation in production processes conducted in adverse and hazardous work conditions, and oriented toward increasing the safety of production processes.

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REGIONS

KRAKÓW

MAGICAL PLACE JACEK MAJCHROWSKI, Mayor of Kraków, talks to ”Polish Market.”

How do you think Kraków attracts investment for regional development?

Kraków attracts investors with its size, reputation and business infrastructure. Another valid point is availability of office space of class A and B+ in our city. In 2018 alone lease agreements were signed for over 200,000 square metres of space. Another element that impacts investor decisions when choosing Kraków for company development is staff educated at Kraków colleges and universities. It is clear that the level of higher education in Kraków competes with the best foreign universities both in Europe and around the world.

PM

Do you think Kraków remains a business friendly city?

What is the reason for this?

Kraków is unquestionably a business friendly place, which finds its confirmation in the fact that Kraków was awarded the title of Business Friendly City of 2017 by the Institute of European Business during the 11th edition of the competition named Business Friendly Local Government. 321 cities participated in the latest edition of this competition. Kraków was among the top cities, with Warsaw and Wrocław just behind it.

Additionally, Kraków was among the top cities and received 12 awards in this year’s edition of Polish Cities of the Future 2019/2020 ranking. In the ranking of Top 10 Polish Cities of the Future 2019/2020 Kraków turned out to be the best place for business among regional cities. At the same time, in the ranking of Top 5 Big Polish Cities of the Future 2019/2020 Kraków took the second place in 4 categories, and the fifth place in the category of cost effectiveness. This means that while the capital of Lesser Poland offers a high quality of life and urban infrastructure it also competes with quality rather than a low price, being the best location in Europe for SSC businesses. The abovementioned awards only prove our high position on the business map of Poland and Europe.

We have been continually working on resolving this issue. It’s not easy though. We are trying to balance the interests of residents and tourists. Both Kraków residents and tourists want to benefit from being here in the city which attracts crowds every year. According to the report “Tourist Traffic in Kraków in 2018”, 13.5 million people visited Kraków last year, which is a growth of 600,000 when compared to 2017. In terms of the tourist industry there were 9.6 million visitors, i.e. over half a million more than a year before. Out of those almost 3 million were foreign tourists (compared to 200,000 less the year before). In 2018 Kraków airport handled almost 6.8 million passengers.

PM

PM

How do you think we should develop the tourist industry in the historic city of Kraków while reconciling this development with the needs of its residents?

Do you think Kraków is a city that focuses on electromobility in public transport?

Kraków is the first city in Poland which has launched a bus line operated only by electric buses. Currently there are 26 of them in the city. By 2020 MPK SA (Municipal Transport Company) is planning to purchase another 25 electric buses. At the same time Kraków is developing the project of carsharing which presupposes the designation of 50 to 70 urban charging stations for electric vehicles.

PM

Do you think Kraków remains a good place for development in the sector of new technologies?

Companies, such as Cisco, IBM, EY, ABB, Ericsson, Capgemini or Comarch have their offices in Kraków. This shows that Kraków is a perfect destination that facilitates development of business and new technologies. Multinationals are increasingly eager to include Kraków in their development plans while creating high-performing business as well as research and development centres here. It opens up a wide range of potential not only for the city but first of all for those who seek their professional and personal lives in Kraków. It is for them that the solutions applied worldwide are created in Kraków. These solutions, new technologies or development of international business in our city would never have been possible if it hadn’t been for the excellent colleges and universities whose graduates become highly qualified employees.

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AIM HIGHER

In an interview with “Polish Market,” ELŻBIETA ANNA POLAK, Marshal of the Lubuskie Province, discusses the region’s present-day attainments and plans for the future.

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“

WE HAVE A VISION OF THE REGION. WE WANT IT TO BE A GREEN LAND OF MODERN TECHNOLOGIES. STEP BY STEP, WE PURSUE THIS GOAL CONSISTENTLY AND WITHOUT COMPLEXES. "

Does the Lubuskie Province have a plan for the future?

Of course we do. We have a vision of the region. We want it to be a green land of modern technologies. Step by step, we pursue this goal consistently and without complexes. We have set priorities and directions for development. We know where our strengths lie and we are aware of our potential. We have built an R&D infrastructure, we have improved transport, IT and telecommunications infrastructure. We have decided to support entrepreneurs and it has paid off because they are now the driving force of our economy.

We have invested heavily in health care. We now have the least indebted hospitals in Poland. We also improve the quality of treatment. However, we are not complacent and we are aware of our shortcomings. University education leaves a lot to be desired, society is aging and the innovation level is low. The potential development areas and the shortcomings we have identified determine the directions of future development. We have planned specific actions to deal with existing problems.

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preventive health care. For a region which cares for social issues is a region of satisfied residents who value their health and quality of life the most. That is why we will continue to invest a lot in health care. We are building the Mother and Child Health Centre, we develop cancer treatment facilities, we have built a Radiotherapy Centre, we modernise hospitals and provide modern equipment, and we also implement preventive care programmes. We take care of medical professionals, which is why we support medical studies and finance scholarships for future doctors. However, apart from a healthy body, you also need a healthy spirit. That is why we focus on the development of culture. In this respect, we have planned a real investment boom. We have plans to modernise theatres, the Lubuskie Land Museum, the Bogdaniec and Dobiegniew Museum. We will build an extension of the philharmonic hall and an institute of design and creativity. Lubuskie is also meant to be a well-connected region, which is why we will continue to develop transport, IT and telecom infrastructure.

You have mentioned that the region’s priorities are in line with EU policies. What is the future of the regions within the European community?

I have recently attended the European Summit of Cities and Regions in Bucharest, where we discussed this topic. A declaration was adopted which clearly sets out the role of regions in Europe. The European Union needs regions and cities as much as they need the EU. The Bucharest declaration indicates the need to strengthen local democracy and local government. For strong regions mean a strong Europe - a civic Europe, which is open and economically strong. Europe needs sustainable development and its regions are its guarantee. Regions need stability, decentralisation and independence. You need to improve the law and pass as many responsibilities down as possible. I always quote Professor Regulski, who said that the state should take care of what it has to. The citizen should take care of what the state doesn’t. The best proof of this is the implementation of the European cohesion policy. Lubuskie and other regions have shown a number of times that they are coping very well, that they are effective. It is worth focusing on regions, because they are the basis for the development of the European community.

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The future begins today ...

That’s true. All decisions which we now take, and the goals which we intend to carry out, will have an impact on the future of our children and grandchildren. This applies especially to local government officials, because they have a real impact on reality. We are the closest to ordinary citizens, and we need to be in touch with their needs and respond to them, in order to live better lives.

As we take up fresh challenges, we must be aware that we also do it for future generations. So it is important to be diligent and consistent. We are like that in the Lubuskie region, and that is why we have scored many successes. You have to face problems and solve them, not sweep them under the carpet. You have to consistently pursue your goals. But to achieve this, you need to know how to do it. That is why strategic planning is very important. It sets the direction, the path we need to move along to reach the goal. We also need to believe in success. To quote Krzysztof Wielicki, the legend of Polish Himalayan mountain climbing, if you really want to, you can reach the top. You always have to aim higher. You have to reach for the stars, set ambitious goals and consistently strive to achieve them.

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So what will be Lubuskie’s future?

We want to be a smart region. We are building a Space Technology Park, which is to serve as a centre for the development of modern technologies. It is also time to make full use of the infrastructure of science and technology parks, to keep young people here, to focus on the intellectual potential, to finance the transfer of innovation to business. We also want to build a regional network of innovative start-ups. As I have already mentioned, Lubuskie is a green land of modern technologies. A more environmentally-friendly region is one where there is no smog, which is why we finance the replacement of obsolete heating installations. It is also a region protected against flooding, a region which produces and uses clean energy. These two of our main goals are perfectly aligned with the direction of the European Union's development policy.

The European Commission has decided to allocate as much as 65% of the funding to these two priorities. But that’s not all. People are the number one potential of our region and its future. That is why we focus very much on social inclusion. We have dedicated programmes: the young On-life, as well as rural and senior citizen initiatives and PM

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Nowa Sól Economic Zone

Nowy Kisielin Economic Zone

Gorzów Wielkopolski Economic Zone

LUBUSKIE

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T

he Lubuskie Province is the youngest region in Poland. It focuses mainly on dynamic and sustainable development. It is managed in a strategic and stable manner. The region's authorities have set a clear goal - Lubuskie is to be a green land of modern technologies. This bold vision is being implemented under the Development Strategy of the Lubuskie Province, where the most important priorities are set out: a competitive and innovative regional economy, high transport, IT and telecom accessibility, social and territorial cohesion, and efficient management. Their consistent implementation is bringing expected results.

The effective use of EU funding has had a major impact on the development of the region. The past decade has marked a true leap forward for Lubuskie. Thanks to the S3 expressway, A2 and A18 motorways and the proximity of the A4 motorway, Lubuskie is now one of the best connected regions in Poland. 500 km of roads and 165 km of railway lines have been built and modernised within the past ten years.

The region also has a developing Zielona Gรณra Babimost airport, which has served international flights for the past two years. Lubuskie has invested a lot in modern technologies. 1,500 km of fibre optic cables have been laid. Now in its final stages, the project will bring fast internet to local residents. But it is not just about transport, IT and telecom links. Lubuskie focuses on innovation and modern technologies as well as dynamic economic development. Thanks to consistent regional policies, the local economy is performing better and better. The GDP has doubled, manufacturing output has increased almost four times, unemployment has dropped to 6%, and the average wage is twice of what it used to be. For many years, the Lubuskie region has enjoyed an export surplus. It exports products to 140 countries, and imports them from 114 countries. The region is good at attracting investors. It creates a favourable environment for businesses. With this in mind, infrastructure and media have been developed in I-zoned areas which total 3,000 hectares. The location of the Lubuskie Province on the border with Germany favours foreign investments, mainly from Western Europe and Scandinavian countries, which are also natural import partners for Lubuskie entrepreneurs. Production for the needs of the automotive industry leads the way in the region. Traditional sectors which are doing well are wood processing, paper and furniture production and food production. Between them, these four industries account for a total of 48% of the total industrial output of the region. Other industries which are active in Lubuskie are metalworking, machine engineering (including electrical engineering) as well as the rubber, plastics and chemical industries. Demand for IT products, as well as fintech and e-commerce services, is growing dynamically, while transport and logistics have traditionally been strong. The most important trade partner of the Lubuskie Province is the Federal Republic of Germany. Almost 50% of goods and services exported by Lubuskie companies are bound for the German market. This is followed by Italy, the Netherlands and Denmark. In terms of imports, Germany has an over 50% share. Among other partners, Italy, Denmark and the Czech Republic top the list. Lubuskie also attracts investment from global companies based in Germany, Sweden, Denmark, Italy, Switzerland, Japan and India.

Promising sectors and existing investors are the showpiece

Seco/Warwick is a technology leader in innovative solutions for the thermal treatment of metals

Nowa Sรณl Economic Zone

of the region. Regional authorities strongly support entrepreneurs in their effort to reach fresh markets, and one of the tools are business missions organised by local government. Lubuskie also takes active steps to attract investors.

A potential investor has a number of business-related institutions at his disposal which can help in starting operations in the region, including the Investor and Exporter Service Centre and the Investor Service Centre. Similar centres can be found in individual towns and communes.

The region offers investors numerous incentives tailored to their needs. These include preferential terms offered

by Special Economic Zones. Lubuskie is a perfect place for companies to develop. It is truly a region which is worth โ ข your while.

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MAZOVIA TOWARD SUSTAINABLE

DEVELOPMENT

ZDZISŁAW SIPIERA, Mazowieckie Province Governor

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hen you think about the Mazowieckie Province (Mazovia), you first think of Warsaw. There is no doubt that it is the undisputed leader and investment hub not only in the Mazowieckie Province, but also in the whole of Poland. But as the governor of Mazovia, my view is quite different. Mazovia is the largest province in Poland, and each of its parts has great potential. And it's true not just about the other large towns and cities of the province - Radom, Siedlce, Ostrołęka, Płock and Ciechanów, but also about many smaller towns that attract entrepreneurs. For several years, thanks to intensive investments, the development of the region has been progressing at a rapid pace and in a more equitable manner.

ROADS ARE THE FOUNDATION OF ECONOMIC DEVELOPMENT

In order to enable investors to operate, it is necessary to constantly strengthen transport networks in a uniform way. Over the past few years, the scale of these investments has allowed us to say that we are moving towards sustainable development, without which it is difficult to achieve steady economic growth. Development means looking for new areas and opportunities, gaining new markets. Thus, it has been necessary to take measures to facilitate access to places which are attractive for investors and tourists. This doesn’t just hold true about the eastern part, which used to be neglected for many years. It is naturally a process which must go on, but I can’t hide my satisfaction with the fact that so much has already been done.

As the governor of Mazovia, I issue permits for major road projects – motorways and expressways. The efficient construction of the S8 expressway has enabled good access to the city of Białystok (located in the Podlaskie Province.) The S7 has shortened travel time to Radom. Intensive construction work is underway on Warsaw’s southern ring road, and the S17 to Lublin (Lubelskie Province). Another priority is also the extension of the A2 motorway in the eastern direction (Warsaw to Kukuryki.) The intensive development of local roads is no less important. In the past three years, 411 km of municipal and district roads have been built or modernised, to the tune of PLN 226 million.

This year, the Local Government Road Fund has started its activities. It has earmarked a sum of PLN 497 million for road development in the Mazowieckie Province. It is an amount which will be of historical significance for the development of local communities.

It is also necessary to create transport hubs. Preparations are under way for the construction of the Solidarity Transport Hub Poland in the Baranów commune. A series of contracts for the expansion of the airport in Radom have already been signed. Investments in energy security are also progressing – the construction of a new generating unit at the Ostrołęka power station, and a 400 kV high voltage line to link Greater Warsaw and Siedlce, has begun. All these undertakings will boost development and will also serve residents and investors.

MAZOVIA - MANY PLACES TO DISCOVER

Road infrastructure investment projects make it easy to discover captivating corners of the region. You can now reach exciting places much faster than before. Mazovia is bound to impress you with its diversity. Both architecture enthusiasts and nature lovers will find inspiration here.

The existing section of the A2 motorway east of Warsaw puts Węgrów, the Baroque pearl of Mazovia, within easy reach. The town is known for its fine churches. Węgrów is part of the historical route known as the Grand Lithuanian Trail, which once connected Warsaw with Vilnius.

Currently, it is a tourist trail that showcases the attractions of Eastern Masovia and Podlasie. Those into industrial architecture will find many attractions west of Warsaw – in Żyrardów, where a 19th-century industrial settlement has been preserved. Fans of military facilities can visit one of the best-preserved fortresses in Poland and Europe – the Modlin Fortress, which is located in a scenic area - at the place where the Vistula and Narew rivers meet. There are also many picturesque castles in Mazovia, for instance Czersk, Iłża, and Liw. Knight's tournaments are becoming more and more popular. A unique tourist trail leads from Czerwińsk on the Vistula to its surroundings. The Basilica of the Annunciation of the Virgin Mary is one of Poland’s few Romanesque buildings. Inside it, the country’s largest paintings from this period have survived.

The city of Płock on the Vistula river bank is a one-of-itskind pearl of architecture. It is little known that Mazovia also has lakes. In the Gostynin area there are about sixty of them, dotted around a scenic landscape.

MAZOVIA - FRIENDLY TO RESIDENTS

Mazovia offers better and better opportunities to suport the needs of families, which translates into better quality of life for its residents. Thanks to the government programme Maluch +, the availability of nurseries has increased significantly in Mazovia - we are a leader in newly set up nurseries on a national scale. The needs are still considerable, but the most important thing is that we are witnessing a clear trend toward improving availability. It is also a growth factor. Good nursery care allows parents to be professionally active. Over the past four years, the number of day-care centres, (Senior + homes and clubs,) in which senior citizens can spend time, has increased.

SYNERGY

Steady development is impossible to achieve without equal opportunities for all regions and various social groups. We can achieve this by pursuing cohesive policies on many levels, including the social, infrastructure, environment and health care level. The combination of these elements should create a system which makes it easier for citizens to undertake not only economic but also public activities.

As a representative of the government in the Mazowieckie Province, I take care to ensure this cohesion.

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MAZOVIA

IS NOT JUST WARSAW

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azowieckie province (Mazovia) occupies an area of 35.5 thousand sq.km., 11.4% of Poland's territory. It has a population of over 5 million. It is the most competitive province in Poland and easily attracts foreign investors. The region has been recognised as the fastest growing EU region in recent years.

When it comes to investment, the region attracts the biggest players in the global market. This should come as no surprise, considering the economic potential of Mazovia, its high rate of development, R & D spending, as well as highly qualified workforce. An additional asset is infrastructure, although there is always room for improvement. The region has a developed transport hub, access to a motorway, expressways and two airports (Warsaw and Modlin.)

Warsaw is the largest and most important centre of science, culture, politics and business. It is the largest Polish city in terms of population and area. Warsaw is also an administrative centre, the seat of the most important state offices.

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The Mazowieckie Province is mainly associated with the country’s capital. But this is a mistake because there are many other places in the region that are worth visiting, whose local authorities encourage entrepreneurs to invest there by demonstrating how open they are and how much goes on in their communities.

OSTRÓW MAZOWIECKA

One of the undeniable advantages of the town of Ostrów Mazowiecka is its location at the meeting point of important international, national and regional transport routes. These are the S8 Warsaw-Białystok expressway and the Via Baltica international route now being built, one of whose junctions will soon be commissioned in the Ostrów Mazowiecka area.

Ostrów Mazowiecka is a town which is dynamically developing. It steadily improves the quality of life of its residents.

Thanks to EU funding, historic buildings –Jatki (previously a meat market) and Old Power Station have been revitalised for use as culture centres. Recently, local

authoritieshave set up the Museum of the Pilecki Family. This new facility is run jointly with the Ministry of Culture and National Heritage.

One of the town’s advantages is its location close to the Puszcza Biała forest and not far from the Bug river valley, which are both part of the European network Natura 2000. The town is keen to introduce innovative solutions, such as an electric scooter rental project launched in conjunction with neighbouring communes.

PRUSZKÓW

The largest town among Warsaw’s western suburbs, it has good links with the capital and a favourable location – close to international and national routes, the airport, a railway container terminal and the eastwest highway. These are the factors that boost the city's development and encourage the creation of new domestic and foreign firms. In the "Polish towns of the future 2019/20" ranking compiled by the opinion-forming "fDi Magazine," part of the Financial Times Group, Pruszków has taken

REGIONS the 9th position. In terms of accessibility – transport links, it has ranked second.

The most important cultural events which have become permanent fixtures in the local calendar are: Concerts at the Orangery in Museum of Ancient Mazovian Metallurgy, Spring Concerts of organ and chamber music in Pruszków churches, the C. K. Norwid Polish National Poetry Competition, Night of Museums, Pruszków Days, Farewell to Summer, Rally "In the Footsteps of Our History," July Midnight Concert and Summer Cinema.

OTWOCK

The town of Otwock features a unique blend of microclimate, location and natural assets.

Otwock is more than 100 years old. Commonly known as Pine Town, it first won acclaim as a summer holiday resort and health resort. The town has many historic buildings, in particular unique wooden villas in the Świdermajer style. The proximity of Warsaw, good road and rail transport, a unique location among the forests of the Masovian forest park, as well as the scenic banks of the meandering Świder river, create favourable prospects for the town’s development as a tourist destination. Otwock is an attractive area for investors. It places considerable emphasis on the development of infrastructure. It pursues an active investment policy and has its own well-developed utility infrastructure. It has many attractively situated plots of land ready for housing development, industry and recreation.

Business, retail trade and construction are dynamically developing in Otwock. The town keeps up its tradition as a spa and health centre. The scenic surroundings, care for the development of infrastructure and the dynamic residents are the reasons why the town develops at an impressive rate.

CZERWIŃSK ON THE VISTULA

This area has a considerable tourist and economic potential which is still largely untapped. Czerwińsk nad Wisłą is a town located north-west of Warsaw on the bank of the Vistula river, between the towns of Wyszogród and Nowy Dwór Mazowiecki.

It is also the seat of the Czerwińsk commune. The place is included among the historical treasures of Mazovia. It is slowly being revitalised and is regaining its somewhat forgotten identity. Czerwińsk’s tourist attractions include the Annunciation of the Virgin Mary basilica from the first half of the 12th century. It is one of the region’s few Romanesque monuments. Inside, fragments of Romanesque paintings

(the largest in Poland) can be found. Valuable Gothic frescoes have also survived. Numerous films and TV series have been shot here, which allows cinema lovers and TV enthusiasts to picture their favourite scenes in local settings.

GOSTYNIN

The town is located in central Poland, 120 km west of Warsaw in the GostynińskoWłocławski Area of Outstanding Natural Beauty, often called the "Green Lungs of Mazovia". There are established three nature reserves of Osetnica, Dybanka, and Drzewce within the Gostynin area. A large part of the Gostynin county is occupied by the Gostynin Lake District with about 60 lakes.

The town is constantly developing and is friendly to investors. Companies from different sectors of the economy are present here, notably retail trade and construction firms. One of the major investment projects was the reconstruction of the Gostynin Castle, which currently serves as a hotel and restaurant with a cafeteria and a museum. Gostynin county has a well developed network of roads. Gostynin lies in an area abundant in geothermal waters, which can be found in its northern part, on the right bank of the Skrwa River. Local mineralised geothermal waters have healing properties.

IŁŻA

A town in the southern part of the Mazowieckie Province, it is situated amidst lush greenery on the Iłżanka river flats.

Iłża has a rich past. In the market area, a historic urban layout of the oldest part of the town is preserved. The biggest tourist attraction are the ruins of the Gothic-Renaissance Iłża Castle once owned by Krakow bishops. Historical events such as knights' tournaments regularly take place in the castle.

WINNICA

The Winnica commune has a well-documented cultural heritage - religious monuments, a town layout and man-made landscape features preserved since the Middle Ages. Inside the local church, some of the major attractions include the main altar and two side altars, dating back to the 18th century, chasubles and chalices from the same period, and an iron sacristy door, believed to date back to the 16th century. The church and its individual features and artefacts is considered a historical landmark and has been entered in the Polish register of historical buildings.

ZAKRZEW

Is a local leader in securing EU funding.

An important place in the commune is the Historical Park in Taczów, which encompasses the Chivalry Museum, Powała forge, outdoor sculptures "A meeting at Powała," a set of erratic boulders called Witnesses of History and Chapel of the Mother of God, a diorama of the painting "Battle of Grunwald," a "Prussian Homage" stone relief and a fairyland alley leading to a children’s playground. Since 2009, the Knight’s Festival has been held here. In the commune you can also find a fire brigade museum in Dąbrówka Podłężna, where you can see vintage fire trucks as well as rescue and firefighting equipment.

WĘGRÓW

The town’s economy relies on agriculture and industry. Most local firms are privately owned. Local industry is dominated by food processing and the production of building materials, furniture and machine parts. Węgrów is called a Baroque Pearl. It is famous for its religious architecture, for instance the St. Peter of Alcantara and St. Anthony of Padua Roman Catholic parish complex. It was entered in the register of historical buildings in 1962 as a valuable example of a Baroque monastery from the first half of the 18th century. In the monastery there are numerous works of art, including the last dome fresco by Michelangelo Palloni, an outstanding painter of the Baroque period, and a splendid depiction of the crucifixion scene by Andreas Schluter in the main altarpiece.

LEGIONOWO DISTRICT

It is located just 25 km north-west of central Warsaw. The County is well connected with the city by public transport, a commuter railway and the modernised Modlińska street. Its location makes it a great place to live and invest in. Natural advantages make the Legionowo Countya businessand tourist-friendly area. Within the Legionowo County lies Lake Zegrzyńskie - the largest reservoir in Mazovia. It is the region’s main attraction and a popular holiday destination for both inhabitantsof the county and outside visitors (especially Warsaw residents). It has well-developed accommodation, conference and catering facilities as well as an extensive sports and recreational infrastructure, which makes it possible to spend leisure time in an active and attractive way. Water sports are available all year round. Local facilities are also perfect for business meetings.

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A GREAT PLACE TO GIVE BIRTH Pruszków county is undergoing a profound makeover. It has evolved from a Warsaw suburb into an industrial and business centre. It is also a place which young women prefer to choose to give birth safely. Pruszków County Head KRZYSZTOF RYMUZA talks about these and other achievements in an interview for "Polish Market."

What changes can the inhabitants of the region expect from the periodic assessment of the Pruszków County Development Strategy for 2015-2025?

We are commencing a project which consists in planning all road investments until the end of the term. We meet with representatives of the county’s six local government bodies in Brwinów, Raszyn, Nadarzyn, Michałowice, Piastów and Pruszków, to find out about their priorities in terms of road modernisation and construction. Until now, decisions were usually made at the county level. Now, the County Council receives recommendations from the Board, so that everyone knows what to expect. In this way, investment projects can be carried out in a more cohesive manner.

I would like to emphasise that joint undertakings form the basis of the county’s activities. At the same time, it is difficult to encourage local councils to participate in the financing of, say, the construction of schools, because each commune has one. Things look different when it comes to the hospital, which is shared by all.

It is different still in the case of county roads.

Here joint undertakings prove the old saying that local government is an opportunity, not an option. In line with this philosophy, we are implementing several investment projects in which up to four local government bodies are involved at a time, e.g. the Grunwaldzka street flyover at the point where Piastów and Pruszków meet, or the building of Dworcowa Street.

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So what’s the scope of road investment projects?

There are over 160 km of roads in our area.

Since the opening of the A2 motorway, the modernisation of the S8 expressway and the commissioning of access roads leading up to these, the county road network is facing fresh opportunities. Once county roads were meant to link community centres and railway stations with the county’s administrative centre, as a result of which the local road network was developed. Now, county roads allow drivers to reach the motorway and expressway much faster than before.

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In what way has the new road map changed the county’s perception among investors, including those who want to invest in housing construction?

Let me give you an example. TNT, which used to have a trans-shipment depot in Warsaw's Żerań district, has moved to Sokołów in the Pruszków county, because it is much better accessible. In fact, this county is famous for its logistics and transport centres. We are also increasingly moving toward industrial development, which is certainly transforming some of our communes, which were previously perceived as idyllic garden suburbs. Well, we do not want to stand in the way of progress. We already have plenty to boast about. The wellknown company Blachy Pruszyński is based in the county. The Pruszków county is home to PM

the Siltec computer company which offers IT solutions with increased security. There is also the St. Majewski company with longstanding tradition, which is known for Bambino crayons.

Moreover, Professor Henryk Skarżyński runs the famous World Hearing Centre of the Institute of Physiology and Pathology of Hearing in our Nadarzyn commune. It's our pride and joy.

What are the investment priorities for the county beside roads?

First of all, we invest in education. In the previous term, a new building for the Tomasz Zan high school was erected in Pruszków. This year, we are launching the construction of a school and educational centre for children with special needs at Wapienna Street in Pruszków. It is a place with a fine history, because Father Jan Twardowski, now the patron of the institution, used to teach there. The centre has adopted an individual approach to the needs of the young. In some classes, children’s therapy is conducted one-on-one, which allows children to be trained for auxiliary professions in an optimum way. The construction of a new building for the Tadeusz Kościuszko high school in Pruszków, is in the pipeline. The existing building no longer meets present-day requirments.

A 25 metre pool at the High School and Sports School Complex in Gomulińskiego Street in Pruszków, is also planned. Future sports champions will be trained there. We are also thinking about recreation. Cycling paths are being PM

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THE QUALITY OF OBSTETRICS CARE IN PRUSZKÓW HAS IMPROVED SO MUCH THAT THE NUMBER OF BIRTHS AT THE LOCAL HOSPITAL HAS GONE UP 10-15% YEAR-ONYEAR, WHICH MEANS UP TO 1,300 BIRTHS ARE EXPECTED THERE THIS YEAR."

built along railway tracks. Now the paths are 15 kilometres long, but we also want to extend the network to allow cyclists to reach local beauty spots. Cycling paths will be built along rivers. The county boasts a number of parks.

A place worth visiting is the Dulag 121 Museum in Pruszków, which documents the history of a German transit camp were Warsaw residents were held in during and after the abortive 1944 rising against the Nazi occupation.

Where did the idea to focus on education come from, including sports education?

We have a dozen or so very talented swimmers and pentathlon athletes. The young backstroke champion Julia Koluch comes from the Pruszków county. The trouble is that young athletes have nowhere to train and study at the same time. Our swimmer, who showed great talent at the age of 12-13, had to train for several years at the Olympic centre in Drzonków, which was a long way away, and this largely excluded her from family life.

That’s why we have decided to invest in a project which would combine standard education with sports training near the young athletes’ place of residence.

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But for those in less than perfect health, is there a chance for better hospital care than in previous years? After all, health care must be very important to you as a medical doctor.

We are beginning the construction of a new hospital ward which is intended to meet current stringent health and safety regulations. It’s a surgical unit. During the last term, over PLN 12 million was spent on the County Hospital in Pruszków. The new investment project will cost another PLN 16 million. One of our flagship health programmes is a parenting school.

It was launched three years ago, in conjunction with two hospitals which have the best maternity wards in the Greater Warsaw area: the Żelazna and Madalińskiego Street clinics in Warsaw. To make the County Hospital in Pruszków the best place to give birth in, we have invited leading specialists from the two Warsaw clinics to work with us. The quality of obstetrics care in Pruszków has improved so much that the number of births at the local unit has gone up 10-15 % year-on-year, which means up to 1,300 births are expected there this year.

It is worth noting that the birth school for our residents is free. Patients from Warsaw come here, too. This, of course, produces a tangible financial result.

But family-oriented policies also involve the need to deal with other challenges, including social pathologies. How does the county manage to deal with difficult social problems?

I would like a sobering-up centre to be set up in the county. Counties are usually reluctant to do so, because it is commonly thought PM

that a place like this only provides support for alcoholics. It is expensive to maintain because those who are treated there only pay up to 30% of the cost of their stay. But we have decided that a sobering-up centre could also provide vital support for families of alcoholics, which is why we will strive to achieve this goal.

How is the centre supposed to function in practice?

For example, in a crisis situation, when an alcoholic is aggressive toward family members, the wife and children are usually given refuge at a crisis intervention centre. In the absence of a sobering centre nearby, the violent alcoholic is left to his own devices, has a flat to himself, and he can sell family possessions to pay for alcohol or invite friends round. We have decided to reverse this situation: to take the alcoholic first to the sobering up-centre, followed by a detox unit at the local psychiatric hospital. According to psychiatrists and psychologists, an alcoholic on a bender needs medical and psychological support. Those who are willing to accept it, will be able to receive it from professionals on the spot. However, we must convince the community to come round to our way of thinking, because this investment project is very expensive. It requires a consortium to be set up to finance the venture. The county • will not be able to afford it on its own.

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WORLD HEARING CENTER A SHOWCASE FOR

POLAND IN THE WORLD

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he World Hearing Center in Kajetany near Warsaw is a unique facility on a global scale. It is the main unit of the Institute of Physiology and Pathology of Hearing a research center (category A + and A), and also a highly specialized hospital that provides comprehensive care to people with hearing, voice, speech, respiration and balance impairment. The originator, founder and director of the institution is Professor Henryk Skarżyński, M.D., Ph.D., dr. h.c. multi, otosurgeon and specialist in otorhinolaryngology, audiology, phoniatrics and pediatric otolaryngology.

The patients of the World Hearing Center have access to the latest medical technologies as the first or one of the first in the world. This is the result of over 25 years of Prof. Henryk Skarżyński’s work, who on July 16, 1992, for the first time in Poland, performed an implantation of a cochlear implant in a deaf person.

Since that time, a huge progress in the treatment of hearing impairments in our country has begun and pioneering operations have taken place on a global scale. Under the direction of Prof. Skarżyński, new medical procedures were developed and implemented, thanks to which it was possible to identify and treat further groups of patients with various hearing disorders. Original therapeutic and surgical procedures of Prof. Henryk Skarżyński cover over 150 innovative solutions.

The results of Prof. Henryk Skarżyński’s team work for people with hearing impairments were closely watched not only by eminent scientists from Poland and around the world, but also by representatives of other

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communities including artists, athletes and politicians. The World Hearing Center - as a unique center on a global scale - has been visited by representatives of the country's top authorities, Speakers of the Sejm and Senate, ministers and parliamentarians as well as numerous foreign delegations and the First Ladies of the Republic of Poland with their guests from around the world. Currently, both the World Hearing Center and the "Polish otosurgical school," created by Prof. Skarżyński are a recognizable brand in the world and a showcase for Polish science and medicine on all continents.

Professor Henryk Skarżyński: "In Kajetany for 16 years we have performed the largest number of hearing improvement operations in the world."

Specialists from the Center are pioneers in implanting various types of auditory implants in new patients and implementing innovative technological solutions supporting the everyday process of interpersonal communication. It was Kajetany where the world’s first National Teleaudiology Network was launched and developed, and innovative telemedicine tools are developed to study human senses.

There is also the world’s best and largest place to practice surgical techniques in Kajetany. It is an Educational Center with a unique studio equipped with 30 positions for oto- and rhinosurgery, modern equipment for anatomical preparations and computer simulators, where international workshops on otosurgery – WAW Window Approach Workshop - take place. These workshops are addressed to otosurgeons who wish to learn the latest surgical techniques, indications and applications

of auditory implants. A special benefit of these courses is the possibility of studying the use of implants in the treatment of partial deafness under the supervision of Prof. H. Skarżyński, the precursor and creator of the partial deafness treatment program, who performed the first operations in the world in 2002, and so far operated the largest group of such patients on an international scale. The implementation of preventive and screening tests is a part of the Center’s mission from the very beginning. One of the priority activities of the specialists from the Center is a hearing screening program for children of all ages.

Professor Henryk Skarżyński: "Thanks to our activity, hearing screening tests have been performed in over 1 million children starting education in Poland and in over 20 countries on four continents." Screening tests are an excellent example of broadly understood thinking about the early prevention and detection of various diseases that affect human development and its everyday communication. The “Equal Opportunities for Children with Communication Disorders in European Countries” program, initiated and coordinated by Prof. Skarżyński, was an important activity for Polish science and medicine. This issue was the priority of the Polish presidency in the EU in 2011.

Professor Henryk Skarżyński: "I was the main initiator for signing two scientific European consensus statements on hearing screening tests in pre-school and school-age children, and on screening tests for hearing, vision and speech in pre-school and school-age children under the name 'European Consensus Statement on Hearing, Vision and Speech Screening

REGIONS in Pre-School and School-Age Children'." As a result of these activities, in December 2011 the European Parliament adopted a conclusion of the Council of the European Union on “Early Detection and Treatment of Communication Disorders in Children, Including the Use of e-Health Tools and Innovative Solutions”.

On behalf of Polish science and medicine, Prof. Skarżyński with his team has arranged screening tests in over 20 countries in Asia, Europe and South America, coordinating clinical and scientific projects with more than 100 centers on all continents.

The most recent program that influences dissemination of screening tests and prohealth attitudes in Polish society is the Multispecialist Program of Preventing Civilization Diseases and Aiding the Health of Poles "Health First". The program, implemented with numerous experts from various medical areas as well as Polish Television and Polish Radio, is the world’s longest diagnostic and preventive project.

Professor Henryk Skarżyński is also the originator and initiator of the global Hearing Network, which was established in cooperation with four other centers - from Vienna, Innsbruck, Würzburg and Antwerp. The network operates under the slogan "Best Clinics the Best Comprehensive Care for Patients" and unites leading centers in the field of hearing implants and scientific research in the world.

The summary of these excellent achievements are awards granted by medical, scientific, economics and management experts, as well as the Church, politicians and the media. Over the past years, Prof. Henryk Skarżyński received almost 400 awards, medals, diplomas, honorary titles: from the President of the Republic of Poland, President of Georgia, President of Ukraine, King of the Belgians and Pope Francis ("Pro Ecclesia et Pontifice"). The Professor was also awarded the ECCE HOMO medal, the Order of the Smile, the Medal of Nicolaus Copernicus awarded by the Presidium of the Polish Academy of Sciences, the medal of the Archdiocese of Warsaw and the medal from the Primate of Poland. He was awarded with medals by Warsaw University of Technology, Gdańsk University of Technology, Maria Curie-Skłodowska University in Lublin, Fryderyk Chopin University of Music in Warsaw, Medical University of Warsaw, Cardinal Stefan Wyszyński University, Faculty of Management at the University of Warsaw and Warsaw University of Life Sciences. He also received the title of "A Prominent Pole" awarded by the Teraz Polska chapter, the Personality of the Year 2012 title, Special Honorary Pearl, Economic Award of the President of the Republic of Poland and the International Gold Medal and the Prix Galien Special Prize, comparable with the

Nobel Prize. In 2015 and 2016, in the “List of One Hundred” ranking published by the editors of “Puls Medycyny”, Professor Skarżyński was recognized as No.1 – the most influential person in Polish medicine. During the 16 years of the competition he was always in the top one hundred and eight times in the top ten.

Over the past 25 years, members of the management and several hundred employees of the Institute have been honored with national and departmental medals. For the past 25 years, Prof. Henryk Skarżyński and his colleagues have help patients with hearing and speech disorders.

Professor Henryk Skarżyński: "We have provided over 4 million services and performed nearly 500,000 surgical procedures. No centre in the world has ever come close to such achievements in this field of medicine. I am proud that these achievements have become a showcase for Poland in science and medicine on the 100th anniversary of its independence."

their musical and vocal skills. It was the result of EU activities supporting scientific researches. On November 27 Prof. Skarżyński and his patients adressed a special session of the European Parliament.

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GLOBAL PROJECTS, IMPLEMENTATIONS, ACHIEVEMENTS HEARING NETWORK – it is a network established by Prof. Henryk Skarżyński in cooperation with four other centers - from Vienna, Innsbruck, Würzburg and Antwerp. It unites leading centers in the field of hearing implants in the world.

The world’s first NATONAL NETWORK OF TELEAUDIOLOGY – a system initiated in 2007 by Prof. Henryk Skarżyński, which enables telerehabilitation and telefitting – remote setting of speech processors.

EUROPEAN SCIENTIFIC CONSENSUS on hearing screening tests in pre-school and schoolage children, and on screening tests for hearing, vision and speech in pre-school and school-age children – launched and signed by Prof. Henryk Skarżyński in 2011.

44 editions of WINDOW APPROACH WORKSHOP (WAW) – implemented by Prof. Henryk Skarżyński - surgical and scientific workshops with live demonstrations for otosurgeons from around the world, specialists, chairmen, clinic managers specializing in the treatment of deafness with the use of auditory implants.

5th edition on the International Music Festival for Children, Youths and Adults with Hearing Disorders “BEATS OF COCHLEA” originated

by Prof. Henryk Skarżyński.

Promotion of Polish science and medicine in the EUROPEAN PARLIAMENT – at the initiative of Prof. Henryk Skarżyński, in 2007, the exhibition “I hear – I see – I speak – the basis for communication and integration of Europe’s younger generation” was held. In 2018, the selected laureates of previous editions of “BEATS OF COCHLEA”, at the invitation of the President of the European Parliament, presented

PROFESSOR HENRYK SKARŻYŃSKI, M.D., Ph.D., world-renowned otosurgeon, specialist in otorhinolaryngology, audiology, phoniatrics and pediatric otolaryngology. National Consultant for Otorhinolaryngology. The first one in Poland who implanted cochlear, brainstem and middle ear implant. In 2002 he developed the world’s first partial deafness treatment program in adults, and in 2004 - in children. This method, called the "Skarżyński’s method", has been implemented in several world centers. Initiator, organizer and director of Institute of Physiology and Pathology of Hearing and the World Hearing Center. For 16 years, Professor has been performing most of the world’s hearing improvement operations. Initiator of European scientific consensuses and screening tests in Asia, Europe, Africa and South America. Author and coauthor of over 1,000 publications and over 3,000 international congress reports. A member of dozens of the most important national and foreign scientific societies. Winner of over 150 awards - Polish and foreign - medical, church, economic and cultural distinctions. Professor Skarżyński won the general plebiscite "Man of Freedom" in the category of science in 2014. Doctor honoris causa of three national universities and honorary professor of three foreign universities. In 2018 the Professor received the medal and the diploma "100th Anniversary of Independence" awarded by the Prime Minister, and in 2019 – the Medal of the Centenary of Independence - awarded by the President of the Republic of Poland Andrzej Duda.

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A PARTNER, NOT AN ENEMY GRZEGORZ BENEDYKCIŃSKI, Mayor of the town of Grodzisk Mazowiecki talks to Jerzy Mosoń about the town’s advantages.

In the fDi Financial Times ranking of 2017, Grodzisk was awarded the title of the "Polish Town of the Future" in the category of towns with a population up to 100,000.

Grodzisk took the prestigious seventh place in that ranking. How did you manage to stand out on the country’s map?

Thanks to its location, well-developed infrastructure and industrial zones, Grodzisk Mazowiecki attracts companies which are ready to invest here. In addition, local government cares about business, we simply support good investments. We are a partner, not an enemy. We are looking for good, innovative foreign investments, which translates into a very low unemployment level, just over 2%. Every year, more and more families settle in Grodzisk Mazowiecki, and well-known companies establish their headquarters here.

Our potential has been spotted beyond Polish borders, which is confirmed by the results of the ranking you have quoted.

PM

Why are you mainly looking for innovative companies which bring in modern technologies?

Because the future is theirs. We are aware of it and our intention is to make our telecommunications solutions and optical fibres laid PM

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in the commune, a clear investment incentive. We introduce modern solutions which allow companies to take full advantage of the achievements of digitisation and modern technologies without which any company cannot function.

In the 2019 budget, public expenditure is planned at the level of over PLN 312.5 million, out of which road building, construction and modernisation of educational institutions, account for PLN 85 million, nearly 30% of the total.

Road investment projects are very important to us. Grodzisk Mazowiecki is growing rapidly because it lies between the Warsaw to Katowice expressway and the A2 motorway, as well as between the PKP mainline and WKD suburban railway lines. The construction of the Grodzisk bypass is to commence soon. Not forgetting that, thanks to the A2, Warsaw’s Chopin Airport is within easy reach, and at the same time it lies far enough from our town not to become a nuisance. This location has a positive impact on the number of inhabitants and the number of enterprises.

PM

Have you earmarked funds to promote the town and attract new investors?

Yes. We are constantly trying to attract new investors. Nevertheless, we are mainly interested in companies which will introduce the spirit of innovation to the municipality.

High-tech companies are looking for highly qualified staff - and there is no shortage of such manpower in Grodzisk. In turn, employees expect a sense of stability and good wages. We are not interested in low-tech investments, such as warehouses. That is not to say that we do not have them, though. We have set up a dedicated Investor Assistance Department. Entrepreneurs who are starting a business or are interested in the development of their company, can count on our support. We offer, among others, free access to specialists in the field of setting up and running a business, internet marketing, European funds, social media and insurance. Regular courses and workshops take place, we organise meetings with representatives of the Inland Revenue and other institutions which support business, we help businesses secure EU funding. There are a lot of highly educated people living in the commune, and it is with them in mind that we are attracting modern, prosperous and developing companies. We are lucky that we do not need to go out of our way to attract new investors. At

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THERE ARE A LOT OF HIGHLY EDUCATED PEOPLE LIVING IN THE COMMUNE, AND IT IS WITH THEM IN MIND THAT WE ARE ATTRACTING MODERN, PROSPEROUS AND DEVELOPING COMPANIES."

present, a company based in Dubai is to start operations in Grodzisk. It will make tobacco for water pipes and will employ over 100 people. I hope that this will mark the beginning of cooperation with other companies from that region.

The number of new jobs is constantly growing in Grodzisk. Each year, more and more well-known companies locate their headquarters here. In what ways does the local government support SMEs? The mission of Enterprising Grodzisk is to support and promote local entrepreneurs.

We organise Business breakfasts, which are primarily addressed to entrepreneurs from the SME sector who represent various industries and whose businesses are based in the Grodzisk Mazowiecki commune. I recently took part in the opening of Domowa Apteczka. The owner said he picked Grodzisk thanks to the local government. It was music to our ears. We are doing our best to help investors succeed. Small businesses are very important to us, because the sum of small companies gives us a lot of economic potential and PM

intellectual capital in the form of entrepreneurs who run these businesses. Small firms also employ people who have innovative ideas.

sustainable development. We care about culture, sports and recreation. We want to create optimum living conditions for ours residents.

Can you give an example of a local company which has gone global? Can local entrepreneurs be competitive on global markets?

Budokrusz is a Polish private company, which has operated in the construction sector since 1990 and which has worked on the construction of the National Stadium, the Łazienkowska expressway flyover and the Polish History Museum in Warsaw. Currently, it operates in many places in Poland. From a small family company, Budokrusz has grown into a giant which employs a crew of 900.

We talk a lot about business, but Grodzisk is not just that. How to show that it is attractive both in economic and cultural terms? How to promote it and encourage visitors to come to Grodzisk Mazowiecki?

You cannot get bored in Grodzisk Mazowiecki. The offer of spending your leisure time is very rich - everyone will find something to their taste. Without a doubt, local parks are what sets us apart from other towns.

They are a great attraction, also for residents of neighbouring communes. For the benefit of local residents, cultural and entertainment events are organised by the Community Centre, Mediateka, Villa Radogoszcz, Poczekalnia PKP, and the newly revitalised villa Niespodzianka, which houses the Grodzisk Mazowiecki Cultural Centre. Several hundred events of all kinds are organised each year.

A huge attraction are the Walczewskie Ponds, where you can rent a bike, go boating and fishing.

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PM

Is being close to a large city like Warsaw a problem or an opportunity for a smaller town?

It is a great opportunity for us. It is thanks to Warsaw that we are developing so fast. As I have already mentioned, we are in a very good location. We can reach Warsaw within about 25 minutes. We care about ecology and PM

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UNIEJÓW IDEAL CONFERENCE AND TRAINING VENUE IN CENTRAL POLAND

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hanks to its advantageous location, close to the A2 motorway which connects Berlin with Warsaw, Uniejów will soon be known not just as a prime health resort, but also as a perfect place to organise business meetings, conferences, training sessions and team building events. All thanks to the Termy Uniejów Aparthotel right in the heart of the resort next to thermal pools.

“The Uniejów hotel base keeps improving year by year. Until now, the resort lacked a large hotel which could accommodate up to 400 guests in one place,” says Marcin Pamfil, President of Termy Uniejów. “It was a hurdle for large groups hoping to come to Uniejów. Now it is about to change. A four-star hotel, complete with a conference centre with an area of 745 sq.m., is being built in the best location in the resort over an area of 1.5 hectares,” he adds.

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Aparthotel Termy Uniejów will open its doors in August. It already accepts bookings from individual clients, as well as organised groups at www.aparthotel-termyuniejow.pl.

The complex consists of two five-storey buildings. In the first one there will be an atmospheric restaurant seating 200 and four modern and fully equipped conference rooms which can accommodate up to 400 people. In the second building you will find 172 suites and a recreation area with a swimming pool, a relaxing Spa zone with a sauna and fitness rooms, as well as a free and secure car park. All this will make the facility a perfect place for important business events, business meetings, parties and team building events.

Uniejów is a unique place situated on the Warta River in the heart of Poland. Thanks to the discovery of geothermal waters and the use of their potential, the youngest Polish health resort and the first thermal spa in

the country, were built here. There is a thermal pool complex situated at the foot of a 14thcentury castle, surrounded by a 19th century park, which is currently undergoing another expansion. Upon completion, the baths will gain another multi-purpose outdoor recreational pool. It will be equipped with sunbeds, air massage benches and neck and air suction massage facilities. It will also feature geysers, slides for children, a climbing net, floating attractions, water cascade and water jet guns.

The total surface of the water park will be almost 800 sq. m., just as much as in the rest of the Uniejów resort.

Next to indoor and outdoor brine pools, including a children’s pool featuring a pirate ship, and a concentrated brine pool, Uniejów thermal baths also offer a sauna zone, as well as a varied fitness and wellness programme.

Termy Uniejów guests will be able to use the • new facilities beginning in June.

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MIĘDZYCHÓD A PEARL IN THE LAND OF 100 LAKES

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iędzychód is a charming town in western Poland, located close to the western border of Wielkopolskie province on the Warta river and in the vicinity of Puszcza Notecka Forest. The town is inhabited by almost 11,000 people while the whole administrative district (commune) has a population of 18,000.

A true asset of the Międzychód district is its unpolluted natural environment and picturesque landscapes. More than 50% of its total area is covered by Puszcza Notecka, an old forest rich in ground-cover plants and game. The forest provides fresh air permeated with the smell of coniferous trees. The area’s great attraction are its numerous clean lakes abounding in fish. There are 52 of them in the whole Międzychód district and as many as 35 within a radius of several kilometres from the city centre. The area contains part of the Pszczew Landscape Park and unspoiled nature reserves, such as Kamionka Valley and the Kolno Międzychodzkie reserve with old oak trees by Koleńskie Lake. There are also numerous natural monuments.

The town has a unique layout. From the Old Market square, which is one of the most picturesque in the province, you can see both the Warta river and Miejskie Lake. The areas adjacent to the lake – the promenade around the lake and Tietz Park – have recently been beautifully landscaped and are an excellent place for recreation and relaxation. In the evening, people walking along the lakeside promenade

can enjoy extraordinary shows of “dancing” fountains with colourful lighting. Water is a very important part of the town’s character.

A special attraction and symbol of the town is the famous Laufpompa, an artesian well with an over 100-year-old decorative pump. Its water, with medicinal properties and a characteristic smell, is drawn from a depth of around 150 metres. The town’s interesting pieces of cultural heritage include a 17th-century church dedicated to the Martyrdom of John the Baptist and a 17th-century tombstone of Krzysztof Unruh in the Immaculate Heart of Mary church in Lipowiec.

Among noteworthy historic buildings in the Międzychód district there are also the Gothic church in Kamionna dated to 1499 and the Neoclassical palace in Gorzyń. The ferry crossing over the Warta river in Zatom Stary is a great attraction. A modern high-standard campsite with river pier has been built in Międzychód’s Old Port as a stop on the water trail called Wielka Pętla Wielkopolski. Tourists staying in the town can rent there kayaks or bicycles ready for mind-soothing cycling trips. One of the biggest tourist attractions in the region is the Centre for Education about the Region and Nature in Mniszki. It offers vanishing-occupations workshops and a wide range of educational activities for children.

Pieces of equipment used by local craftsmen in the 19th and early 20th century have been gathered in the Centre and every visitor has an opportunity to try their hand at operating them. Międzychód has been increasingly

exploiting its natural and landscape assets for tourist purposes. It is a holiday centre well known in the region and offers a wide selection of tourist farms and hotels. Every tourist can find here accommodation meeting their requirements, be it a hotel, guest-house, campsite or rural farm.

Międzychód offers a range of possible leisure-time activities, like walking, bathing, cycling, horse-riding, playing tennis, beach volleyball and water sports. The Międzychód district is crisscrossed by a network of tourist trails and paths, like for example the “Beaver’s Corner” path in the heart of Puszcza Notecka Forest and the path “In the Footsteps of Famous Międzychód Residents” in the town.

The most attractive local cycling paths are the Radusz, Wanda Mine, 100 Lakes and National Risings trails.

“Międzychód, Just Here” is the town’s promotional slogan. It is designed to convey the message that the town is the best place to live, work, invest and relax.

“We are a land of over 100 lakes, and Puszcza Notecka Forest covers 50% of our area.

We offer many diverse attractions for people visiting us. We have excellent sites for tourism and investment,” says Międzychód Mayor Krzysztof Wolny.

REMEMBERING ABOUT HISTORY Międzychód is steeped in centuries of history, which is an asset of this land and the pride of its residents. The town is situated between 3/2019 polish market

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Miejskie Lake and the Warta River. Its name, which dates back to the Mediaeval times, is associated with this location. The town has retained its Mediaeval layout, with two old churches. The church in Lipowiec is worth visiting to see the 17th-century tombstone of Krzysztof Unruh, a former owner of the town, and tombstones of outstanding burghers.

As Poland celebrates 100 years of its regained independence, it is worth remembering that Międzychód, as a border town, was inhabited for centuries by three ethnic groups - Polish, German and Jewish people - and three religions coexisted here peacefully. Oskar Tietz, a pioneer of modern trade and founder of one of the first chains of department stores, Hertie, was born in the town. To this day local residents still use the sports hall funded by Oskar Tietz in his home town.

FOR RESIDENTS AND INVESTORS Thanks to the work of the local authorities, Międzychód is again becoming a wellknown business and tourist centre. The balanced development of these two spheres makes Międzychód and the surrounding district a comfortable place to live and an excellent place for investors and tourists. Workers are tempted by attractive jobs created in modern plants built by foreign-owned companies while the local authorities offer many pro-family initiatives, like free kindergartens, free swimming courses for pre-school kids and children in forms from one to three. The construction

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of Poland’s first kindergarten with an artificial ski slope is nearing completion. Międzychód has as many as seven kindergartens and the local authorities take care to give each of them a special character. There is also a municipal crèche and two private kindergartens and crèches. The municipality spends more than PLN1 million annually to subsidise the activity of various associations and clubs.

By offering many new jobs in newly established manufacturing plants, Międzychód encourages new people to settle in this peaceful place, which has numerous attractions and great prospects. People moving out from large cities and looking for a place to live in more quiet and family-friendly areas with traditional values is a well visible trend these days.

This is what Międzychód is like. At the same time, the place is so well connected that it is very easy to get from here to larger cities using the A2 motorway, national road 24 and the S3 expressway. And the town is not far from Poland’s western border.

The municipal authorities have tried actively and successfully to attract new investors, with around 600 new jobs created in the past three years. The construction of another plant is in the pipeline. A subzone of the Kostrzyn-Słubice Special Economic Zone has been set up in the town and it offers numerous reliefs and preferential treatment for new investors and existing businesses which want to expand their activity.

Międzychód is a county town and has a good network of secondary schools educating

students in occupations for which there is demand. The town also has a very modern hospital with a new maternity and surgical ward.

“To ensure jobs we have prepared a brochure for investors offering around 150 hectares of industrial and commercial development land complete with infrastructure,” says the mayor describing the activity of the municipal authorities. “Another 1,000 jobs will be created in Międzychód soon,” he adds.

Many of the municipal, private and stateowned plots offered for business development are located in the vicinity of the large village of Łowyń. The Swedish company Balco and the US-owned company Marmite built here their new plants in 2018 and 2019. Among the companies which operate successfully in Łowyń is also Domat, a German plant manufacturing wooden homes for the Western market.

A strong argument for investors to locate here their further investment projects is the welldeveloped transport infrastructure and land provided with all utilities.

ACTIVE MAYOR AND POSITIVE ATMOSPHERE A mayor’s work was once largely limited to signing documents. Today, their duties include managerial activity and looking for investors and contacts in Poland and abroad. “We want to create a positive image,” says Mayor Krzysztof Wolny. “We are a commune of great opportunities and welcome visitors and those who would like to settle here.”

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WE HAVE EXCELLENT SITES FOR TOURISM AND

INVESTMENT

The local market is based on the construction industry, plastics processing and food industry. Trade and services are well developed as well. Potential investors are provided with considerable formal and legal assistance, and we declare our interest in the implementation of investment projects on a partnership basis. The commune has prepared attractive land supplied with services and utilities for residential, industrial, tourist and holiday construction. Sewage and waste treatment plants are situated in our commune. These plants comply with the European Union regulations concerning environmental protection.

The town and commune are almost fully serviced by a water supply system, a sewage system and a gas system.

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POLAND WORTH DISCOVERING On March 15-17, selected hotels, restaurants, sports clubs, museums and other institutions throughout Poland offered their services at 50% of their regular prices in the sixth edition of the campaign “Poland. See More – Weekend for Half the Price” run by the Ministry of Sport and Tourism and the Polish Tourism Organisation (POT). The objective of the campaign is to present Poland’s rich tourist offering and encourage more and more tourists to travel around the country outside the popular summer and winter seasons. It is about increasing tourist activity in low seasons. The campaign is held twice a year: in autumn and spring.

Maciej Proliński

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very year the campaign becomes more and more popular among tourists and partners. The pilot offering was in 2016, with 60,000 people using the services. The one in autumn 2018 attracted as many as 165,000 tourists. The initiative has already become a fixture in the weekend plans of many Polish people. Special offers are available from the website www.polskazobaczwiecej.pl and sell very quickly.

In the autumn edition of the campaign, as many as 757 partners had special offers for tourists, meaning that the record was beaten for the fifth time. Traditionally, the biggest number of tourist offers was in the province of Małopolskie (130), followed

by Mazowieckie and Pomorskie (96 each).

A big change could be seen in Opolskie where the number of partners increased by 200% - from 10 to 30 – compared to the previous edition. Tourists had an opportunity to use proposals offered by many restaurants, museums, health resorts as well as other tourist attractions.

According to Minister of Sport and Tourism Witold Bańka, Poland’s tourist facilities are developing very rapidly while campaigns of this kind are designed to encourage Poles to visit new places and indeed more and more Polish people go on tourist trips in Poland.

“We want to discover Poland and this is inspiring. It is no secret that we offer high quality services at affordable prices, which is reflected for example in the awards that we

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receive,” said Minister Witold Bańka. “Every year we see a rise in the number of domestic tourist travels. The campaign ‘Poland. See More – Weekend for Half the Price’ encourages our compatriots to use tourist attractions and services outside the main holiday seasons as well. It contributes to strengthening this trend. We work together to extend the tourist season in Poland. This year, 894 partners joined the campaign, offering accommodation from hotels to rural farms, transport, food and sight-seeing services for half the standard price. When we started in 2016 we had less than 400 partners. This shows that this campaign was an excellent move.

Poland is beautiful and safe. In order to realise this we have to show the country as it is and encourage our compatriots to holiday here and discover what they have not discovered before.”

“With this campaign, we want to encourage Poles to go sight-seeing not only in high holiday seasons,” said President of the Polish Tourism Organisation (POT) Robert Andrzejczak before the spring edition of the campaign. “I wish to thank all those who have joined another edition of the campaign ‘Poland. See More – Weekend for Half the Price’.

Thanks to you, Polish people have an opportunity again to experience a dream weekend with prices reduced by 50% and become even more convinced that it is worthwhile to go sight-seeing in our country in spring as well.

The growing number of partners means that the tourist packages can become even more

attractive. Together with the whole tourist sector we would like to encourage Poles to book the offers.”

According to the POT president, thanks to the campaign it is also possible to plan a weekend trip and pay half of the regular price. All sectors associated with tourism take part in the campaign. You can plan a weekend starting with the choice of accommodation, which usually is the most expensive part of a trip’s cost, then you can choose attractions convenient to you, clubs, museums and complement all this with food services. Carriers also take part in the campaign so you can reach a selected destination at a 50% discount.

“Poland has a huge tourist potential. There are still some undiscovered places. I encourage you to visit these places. The 50% discount may help you take the decision,” added the POT president. “We are glad that the campaign is growing in popularity not only among tourists, but also among partners. The businesses have noticed that they can gain more together than single-handedly. The campaign changes tourist habits of Polish people and encourages them to travel outside typical holiday periods. The surveys that we conduct after the campaigns show that nine in 10 tourists want to use the offerings again after the end of the price promotions. The findings are very promising. I want to encourage all organisations from the tourist, food services and culture sectors to take part. Everyone simply benefits from this campaign. Both the tourists and the whole tourist sector.”

REGIONS It is worth noting that the campaign ‘Poland. See More – Weekend for Half the Price’ will be advertised outside Poland as well since its next edition in autumn. It will be promoted in all countries neighbouring on Poland, mainly through the Internet and with the help of POT foreign offices – in Russia, Ukraine and Germany.

Participants in a panel discussion held in Warsaw on February 28, who represented the main sectors of the Polish tourist economy, stressed the benefits of the campaign conducted by the Ministry of Sport and Tourism and the Polish Tourism Organisation.

“As an ambassador for Poland in the world, we are opening ourselves to those who want to get to know our country,” said Rafał Milczarski, President of the Polish Airlines LOT, Poland’s national carrier. As part of the spring campaign, LOT offered plane tickets at prices reduced by 50%.

The promotional prices were for all domestic connections between March 15 and 17. “During the March weekend the Polish Airlines LOT again offers tickets at attractive prices reduced by 50%. The airlines has consistently developed its network of connections. Three years ago the national air carrier offered 49 regular connections, now there are 110 of them. In 2015, 4.3 million passengers used LOT services. This year, their number will be twice as big,” Rafał Milczarski said citing statistics. He expected that LOT’s participation in the nationwide campaign run by the Ministry of Sport and Tourism and the Polish Tourism Organisation would strengthen the passengers’ loyalty to the LOT brand.

The hotel sector also appreciates the marketing value of the campaign. “This applies to hotels where occupancy rates stay at a high level irrespective of the time of the year,” said Gheorghe Marian Cristescu, President of Polski Holding Hotelowy. He also expressed his conviction that the campaign would become more efficient when it gets expanded to include foreign markets.

“Sport and tourism are inseparable. This connection does really exist,” added Tomasz Zahorski, who represented the Legia Warszawa football club. “Football matches, but also athletic events, can be the basis of tourist products and definitely their important components. Large sporting events organised in Poland are not limited to the facilities where the contestants compete. The task of tour operators and holiday organisers is to fill the tourist products with specific proposals designed to add variety to the client’s stay in the city, encourage them to extend their stay and to come again for another match or tournament, or exclusively for tourist purposes.”

Seasonality and even bad weather have a great impact on the food services sector. Artur Zymerman, President and CEO of the Belvedere – Café Łazienki Królewskie company, which operates the Belvedere Restaurant in Warsaw’s Royal Łazienki Park, cited the example of this restaurant.

“The revenue earned by this prestigious restaurant in January accounts for one third of its June revenue. The campaign ‘Poland. See More – Weekend for Half the Price’ may change this trend, suggesting some ideas to creators of culinary tourism attractions. For example, a large group of travellers are gourmets who follow the trail of Michelinstarred restaurants and other recommendations provided

by Michelin inspectors in the ‘Main Cities of Europe’ guide.

And many Polish restaurants can pride themselves on having received them,” he said.

•

From left Minister of Sport and Tourism Witold Bańka, President of the Polish Tourism Organisation (POT) Robert Andrzejczak, Secretary of State in the Ministry of Sport and Tourism Anna Krupka and Dariusz Rogowski, Director General at the Ministry of Sport and Tourism

Participants in a panel discussion on tourism, Warsaw, February 28

From left Paweł Królikowski (actor), President of the Polish Tourism Organisation (POT) Robert Andrzejczak, Ewa Pawlak-Lewandowska, Ministry of Sport and Tourism and Małgorzata OstrowskaKrólikowska (actress)

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REGIONS

WARMIA AND MAZURY

A REGION WORTH LIVING IN

GUSTAW MAREK BRZEZIN, Marshal of Warmińsko-Mazurskie Province

“

Warmia and Mazury – a region worth living in” is the motto of the strategy for the socio-economic development of Warmińsko-Mazurskie Province until 2025. As local government members and the region’s administrators, we often quote this phrase in our addresses, publications and conversations with residents of the province. This is why people are at the centre of all activities carried out by the province government. It is our goal to take measures conducive to economic growth, innovation, and cooperation with investors, local governments and the scientific community, and to do so with respect for nature. Thanks to this approach, we have gained influence on the directions of the province’s development, we are a partner for business and jointly create the image of the province as a region attractive not only for tourists, but also businesses and investors.

It is worthwhile to remember about it and about the message which accompanies us in our daily work for the residents of the province and numerous visitors. We stress that social life – from the level of communes to provincial level – is organised on the basis of local governments. It is co-created by people known well in their communities and trusted. In Poland there are few areas of life which still do not function on the basis of local government rules and institutions. People have a partner in the form of local authorities at commune, county and province level in many spheres of activity: from healthcare to education, public transport, environmental protection, social and economic development, tourism, cultural heritage and so on.

The changes which are taking place before our very eyes indicate clearly that this is a continuous process. People come and go, but the tasks, goals and challenges remain the same.

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The development strategy, which we worked out many years ago and which we have updated on a regular basis, gave us development visions while EU funding provided us with instruments necessary to turn them into reality. Consequently, we acquired real influence on the region’s sustainable development and the quality of life of its residents.

The region is changing thanks to EU funding. We are catching up with other EU regions and gradually raising our contribution to the EU’s average per-capita GDP. Our position in the investment attractiveness league table is moving up and our labour productivity growth is faster than the average figure for Poland. The number of businesses operating in the province has been on the rise in recent years. What is more, we have noted growing interest in investment in development.

Warmińsko-Mazurskie Province has its smart specialisation fields. We have chosen specialisation sectors – already well-established in the province and associated with its landscape assets - which are expected to stimulate the development of the region. The specialisation areas were selected following multi-stage consultations with academics, local government members, business people and working teams set up for this purpose.

Apart from long traditions in the chosen sectors and rich natural assets, we took into account access to specialists and the presence of a network of schools educating staff needed by all these sectors.

The idea of specialisation is simple: develop what is already our strength. When starting from scratch, you have to bear huge costs and wait a long time for results. In contrast, when you continue to develop an already well-developed sector you set off a domino effect where one sector drives the development of others. This is a much more effective

undertaking. For example, boat-building yards drive the development of businesses involved in the manufacture of sails, masts, rigging, auxiliary components, upholstery, electronics and engines. Consequently, there are jobs for designers, boat-builders, mechanics, fitters, carpenters, salespeople, and transport and charter firms.

One of the most important tasks of the province government is to ensure sustainable economic development for the region, based on manufacturing, food-processing and services. Water Economy, Wood and Furniture, and High Quality Food are the three fields of smart specialisation where we successfully compete with other regions. But this list of smart specialisation areas is open-ended.

As a province, we have to continue looking for more of our strengths. This is expected to bring about economic growth, development and, consequently, a rise in employment and wages - decent pay for a decent work. This is what employees want. And this is what local governments care about.

We increasingly have to do with a situation where everything we need is in one place. We work here and we relax here. It is just minutes for us to reach places where we can relax after work in the way other people can only experience when on holiday. In Warmia and Mazury you can easily fulfil your cultural needs.

We have theatres, a philharmonic hall and a wide range of educational opportunities. Our region offers everything you need for a good life. Access to the province from other areas of Poland and Europe has improved significantly thanks to the numerous transport infrastructure projects we have carried out and the opening of the Olsztyn-Mazury Airport.

All this shows that we have chosen the right strategy. Its results will be increasingly clear • in coming years.

REGIONS

OLSZTYN-MAZURY AIRPORT

IN THE HEART OF WARMIA AND MAZURY

T

he Olsztyn-Mazury Airport is a modern international airport located in the heart of Warmia and Mazury, the Land of a Thousand Lakes. It lies to the west of Szymany, 8 km from Szczytno and 55 km from the capital of the province, Olsztyn. Olsztyn-Mazury Airport is the only international airport in northeastern Poland, significantly improving access to this region.

To get to and from the airport, travellers can take a railbus for a 50 minute ride from Olsztyn Główny station to the Szymany airport. The railway station is right next to the terminal, and the timetable is coordinated with arrival and departure times. Another form of transport are coach services provided by operators from the Warmia and Mazury and Podlasie regions. In front of the terminal you will also find a taxi stand. For passengers travelling by car, the airport provides over 350 parking spaces at a monitored car park next to the terminal, for short- and long-term parking. On arrival, passengers can also take advantage of services offered by several car rental companies.

The calming architectural design of the Olsztyn-Mazury Airport passenger terminal refers to the regional styles of Warmia and

Mazury. All the travellers have access to restaurant and waiting areas as well as an observation deck. Apart from the café and restaurant, passengers can also enjoy duty free shopping and relax in a business lounge. All travellers have access to a free Wi-Fi network to surf the web.

The Olsztyn-Mazury Airport, which opened in 2016, is a 4C airport, which means it serves aircraft with a wingspan of up to 36 metres, such as Boeing 737-800 and Airbus A321 liners. Airport infrastructure and certificates also allow larger craft to land and take off under certain conditions. The main part of the infrastructure is a tarmac runway with a length of 2,500 meters and a width of 45 meters. Runway 01 is fully equipped for operations in conditions of limited visibility, i.e. category I (CAT I) operations. This means a precision instrument approach and landing with a decision height not lower than 200 feet (60 metres) and with either a visibility of not less than 800 metres or an RVR of not less than 550 metres. In addition, the runway is equipped with a number of modern sensors and devices, which provide meteorological and technical information to airport services. The Olsztyn-Mazury Airport has an apron area of 27,000 square metres.

It offers AVGAS 100LL and JET A-1 aviation fuels and a full range of ground services for passenger aircraft. For emergencies there is an Airport Rescue and Fire Service, providing 5 categories of fire protection (ICAO), which can be upgraded to category 7 on request. At the airport, there are also air traffic control services, meteorological services, customs services and border guard controls.

Currently, three airlines operate out of the airport - Wizzair, Ryanair and LOT Polish Airlines. The network of connections is constantly evolving and expanding. Since the launch of the first passenger flights to Berlin in 2016, other destinations were added, including Kraków, Wrocław, Munich, Warsaw, London Luton, London Stansted and Oslo. In 2018 more flights were launched: on March 27 to Lviv, on May 14 to Dortmund and on June 19 to Burgas. The Burgas flight, from June 9 to September 15, is the first charter flight available from Olsztyn-Mazury airport. It is operated by Neckermann Polska. In the summer schedule, a direct flight to Krakow is back. It will be a LOT service beginning from April 25. Check out the current flight schedule on the Olsztyn-Mazury Airport site • www.mazuryairport.pl 3/2019 polish market

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REGIONS

THE POMERANIAN ZONE SUPPORTS

INNOVATION

PRZEMYSŁAW SZTANDERA, President of the Pomeranian Special Economic Zone talks to ”Polish Market.”

An act on support for new investment projects has been in force since mid2018. It does away with earlier boundaries between zones, creating a single Polish Investment Zone. Do you think that the law marks a step in the right direction? How are economic zones going to function, considering that until now they have competed with one other?

Under the new regulation, a single Polish Investment Zone has been formed. It is managed by 14 regional entities responsible for comprehensive support for foreign and domestic investors who are interested in benefitting from corporate tax relief for new investment projects. Currently, the Pomeranian Special Economic Zone manages an area of 226 communes in the KujawskoPomorskie Province and the eastern part of the Pomorskie province. The act has changed investment rules. The period of time needed for a decision to be passed regarding support for a particular investment project, has been significantly cut. As former territorial restrictions have been lifted, investors no longer need to move to areas previously covered by the zones and can invest in any location of their choice. They can simply invest where it is most profitable for them. In order to receive public aid in the form of corporate tax reliefs, the investor must meet investment value criteria, which depend on the specific location as well as quality criteria. The new rules have been designed to allow Polish businesses, small and mediumsized enterprises, to benefit to the greatest extent. It offers them a better chance to develop, which in turn will have a positive impact on the entire economy. Our Zone has already issued 12 decisions to support investment projects in line with the new rules. Six PM

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of them have been issued to large enterprises, and another six, to micro, small and medium-sized firms, which goes to show that the new system of investment support was needed and was expected by entrepreneurs.

In a nutshell, the adoption of the new law is a very good step which supports the development of the Polish economy.

training classes, internships and projects which involve the use of modern technologies. Our very good relations and close cooperation with local government bodies and other business support institutions, are an additional advantage much appreciated by investors.

Putting a start-up in touch with big business seems like a splendid idea. Where does this idea come from?

One of the main pillars of our activities is supporting the development of innovative solutions for industry. One way of achieving it is through accelerator programmes, in which we put start-ups in touch with large companies. Business is always on the lookout for innovative products, and startups look for companies which will believe in their ideas. The result is specific solutions designed and implemented by over 20 start-ups for 11 large companies, including PZU Lab, Lotos, Orange Polska, seaports, International Paper Kwidzyn and Celsa Huta Ostrowiec. For example, the Port of Gdansk needed sensors to measure the level of noise, particulate matter and toxic gases.

The young firm Seadata responded to the demand and came up with the YetiBox system.

Our goal is to match small ventures with large businesses, and the result is innovative projects tailored to specific needs. We create conditions and a space for two business worlds to meet - large, experienced companies and young, dynamic start-ups with plenty of potential. The start-up accelerator site is part of the Gdańsk Science and Technology Park, which belongs to the Zone and which also provides facilities and support to companies at every stage of their develop• ment.

PM

What are the Zone’s most attractive features for investors: developed logistics, a well-educated workforce or maybe good relations with local administration within the Zone at the level of municipalities, towns and cities?

A company which will invest in the area managed by our Zone, will benefit not just from corporate tax reliefs. It will also receive support at every stage of the investment project and after its completion. One of our key tasks is to help entrepreneurs implement their projects. In conjunction with local authorities, we often prepare selected areas for specific investor needs, which does away with administrative hurdles. We also provide consultancy and advisory assistance regarding the choice of location and the job market. We put investors in touch with vocational education institutions. We provide a comprehensive service. We designate a coordinator for the investment project, we offer post-investment support, promotion on the Polish and foreign markets, support in finding qualified staff, assistance in establishing cooperation with companies, local government and universities. We initiate agreements between schools, entrepreneurs, local governments and other relevant institutions to best adapt educational profiles to the needs of investors. We support entrepreneurs in setting up vocational PM

INTIMATE HOLIDAY RESORT ON THE KRUTYNIA RIVER TRAIL IN A SCENIC MASURIAN WOODLAND SETTING

www.perlakrutyni.pl Holiday-tourist centre ”PERŁA KRUTYNI” in Nowy Most phone/fax + 48 87 423 60 45 mobile: +48 605 046 605 e-mail: info@perlakrutyni.pl

TRANSPORT

NEW TRANSPORT

HUB MAKES ECONOMIC SENSE

MIKOŁAJ WILD, Secretary of State, Government Commissioner for the Solidarity Transport Hub Poland

T

he Solidarity Transport Hub Poland will transform Poland's transport infrastructure. The new airport is something Poland badly needs, and according to estimates, this investment project promises to be profitable. Countries with longterm development visions have large airport hubs integrated into their rail and road network.

Last year, Polish airports served over 46 million passengers, five times more than 15 years ago. Forecasts by the Civil Aviation Office and other public institutions,

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confirm that the upward trend is likely to continue in the future. The situation on the Polish market reflects the IATA-forecast boom, whereby the number of airline passengers worldwide is to double within the next two decades. When it comes to Europe, its CEE region features the fastest growth. This is clearly because, following decades of isolation and underdevelopment behind the Iron Curtain, the region is catching up with the West. In the 19 countries which lie between the Baltic, the Adriatic and the Black Sea, an area which has a total population of 180 million, there

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is no "airport-carrier" combo other than Warsaw and LOT Polish Airlines which would justify the construction of a large international transport hub. As a result, 90% of longhaul air traffic to and from Central and Eastern Europe takes place via hubs located outside the area, thus depriving the region of benefits that might stem from it.

It so happens that Warsaw’s Chopin Airport, the largest airport in Poland - with an almost 40% share in the local market in terms of the number of passengers - is bursting at the seams. It has reached the maximum daily limit of flight operations. Carriers who want to develop further, encounter the problem of lack of take-off and landing slots.

The Chopin Airport is no longer able to significantly increase its number of operations for environmental and infrastructural reasons. It lies within a restricted zone not far from major housing estates. Two expressways recently built around its perimeter leave no room for a third runway. To top it all, night flights over Warsaw are no longer possible.

An expansion of the Chopin Airport planned by PPL Porty Lotnicze may improve its capacity, but it cannot fully support expected air traffic levels in central Poland. Additional capacity could be provided by planned investment projects at two existing airports situated outside Warsaw, namely Modlin and Radom airports. These two expansion projects are in line with the strategy of building the Solidarity Transport Hub Poland, because the latter is meant to significantly boost transfer capacity. For this purpose, key international flights are to be transferred to the new airport.

WHY IS THE SOLIDARITY TRANSPORT HUB POLAND A GOOD IDEA?

Examples from various parts of the world show that a large airport provides a powerful impulse for the economy. According to our estimates, the launch of the Solidarity Transport Hub Poland should add at least PLN 2.4 billion to the budget revenue a year. Another PLN 4.7 billion will be added thanks to an increase in GDP. In addition, some 150,000 jobs will be created directly at the Solidarity Transport Hub Poland and in related industries. A soundly planned transfer hub is a project that pays off. This year's Private Investor Test conducted for the Solidarity Transport Hub Poland has shown that the return-on-investment rate for the airport part promises to be nearly 10%.

The idea of the hub & spoke model provides for flights to as many destinations as possible from the carrier’s central hub. Short- and medium-haul flights carry passengers from local airports to the central hub, where they can conveniently change to other short- and medium-haul flights, as well as long-haul flights which use wide-body aircraft. The national carrier LOT is in great shape, which bodes well for the construction of the Solidarity Transport Hub Poland. It has more than doubled the number of passengers over the past three years. It has increased the number of connections from 40 to 110 and doubled its turnover, while earning a hefty profit. Without a new airport, LOT will not be able to dynamically develop any further.

How do we know that passengers will want to fly from the hub and change there? Firstly, half of LOT passengers use the Chopin Airport as a hub, which means that they do

“

THE IDEA OF THE HUB & SPOKE MODEL PROVIDES FOR FLIGHTS TO AS MANY DESTINATIONS AS POSSIBLE FROM THE CARRIER’S CENTRAL HUB. ”

not travel to or from Warsaw, but just change here. Secondly, a Polish passenger travels by plane three times less frequently than west European passengers, which means a big market potential. The willingness to use air travel by CEE residents is bound to grow as their economic situation improves. The correlation between per capita GDP growth and the volume of air travel has been proved scientifically and will certainly translate into bigger demand for air travel.

When assessing the viability of the airport’s construction, one should bear it mind that it will be accompanied by investments in other infrastructure, especially railway infrastructure. According estimates by the CPK company, PKP Polskie Linie Kolejowe and the Ministry of Infrastructure, some 1,600 kilometres of track will be laid as part of the project. Stage zero will include, among others, a new railway line connecting Warsaw and the city of Łódź with the Solidarity airport. It will be the first section of a new national Y high-speed rail network, named after its Y-shape on the map of Poland. Its hub is planned in the Baranów area, part of which will be links between the Solidarity airport and existing railway lines.

The railway part of the Solidarity Transport Hub Poland Programme is a network of new lines which will lead from the airport in ten directions. As a result, it will be possible to reach the central airport within two hours from 15 of Poland’s 16 largest cities, apart from Szczecin, where it will take longer due to its distance away from the airport. Fast and convenient transport links will also be available to the border areas of the Czech Republic, Slovakia, Ukraine, Belarus, Lithuania and Russia’s Kaliningrad region.

In a nutshell, the construction of the Solidarity airport will provide an impulse for the development of the region, it will lead to a gradual increase in the passenger and cargo potential, and will place Poland on the map of the main passenger and freight transport routes. I would like to strongly emphasise that the idea of the Solidarity Transport Hub Poland will not become the subject of a political dispute.

Quite to the contrary, the hub is a development opportunity for Poland. Its implementation will enable us to make a leap forward. The choice is simple: if in the next few years we fail to build the Solidarity hub, others stand to gain from the passenger aviation boom in this region.

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TRANSPORT

LUCRATIVE

INVESTMENT

PROJECT

W

hat is known as a private investor test for the Solidarity Transport Hub Poland (known in Poland under the acronym CPK) has shown that the rate of return on investment for the airport part of the project promises to reach nearly 10%.

The Private Investor Test (TPI) determines, among other things, basic investment parameters and assesses the economic viability of the project. A TPI was conducted for the Hub by a prestigious independent consultant from a group of the largest consulting companies in Poland. The results indicate that the Hub’s construction will be profitable from the point of view of a potential private investor.

“The Hub project has a profound economic justification. Thanks to its size and strategic character, the project has attracted interest both among financial and industrial investors. We are considering private investment for the project, which means that financing may come not just from the public sector,” says Michał Wrona, Vice President for financial affairs of the Solidarity Transport Hub Poland.

“A detailed and professionally prepared planning and design stage is necessary to implement the project. The Hub has been included in Poland’s new Transport Development Strategy. A long-term government plan will also be adopted this year to define what

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specific investment projects will be implemented, when and what financing will be needed,” says Deputy Minister of Infrastructure Mikołaj Wild, Government Commissioner for the Solidarity Transport Hub Poland.

In this way, the Hub will obtain a status similar to the National Road Construction Programme and the National Railway Programme.

The CPK company has outlined the initial scope of work necessary for the implementation of the new airport. It covers over 60 elements of airport infrastructure. On the railway side of the project, the first investment tasks have been divided between two companies: CPK and PKP Polskie Linie Kolejowe regarding the construction of individual rail links serving the Solidarity Airport (details of the document are currently being worked out).

A strategic advisor will be selected this year, an international entity with investment experience in the design and construction of very large airports. The adviser will support the CPK company with knowledge and experience in the field of planning, design and construction, as well as the rules of airport management and operation. The advisor will also participate in the drafting of the master plan.

This key conceptual document will include, among others, long-term forecasts for the development of the airport for the next two decades. It will also specify the detailed location

of the terminal and runways, as well as providing a cost estimate of the project, along with a list of accompanying infrastructural investment projects.

Since 2003, successive cabinets have commissioned development studies for the central airport, both for external companies and ministerial teams, whose purpose was to determine whether the airport's construction is justified and what impact it is going to have on the economy. Below are some facts and figures which show why the Solidarity Transport Hub Poland is a promising project.

AIR TRANSPORT, GDP AND THE LABOUR MARKET

• According to statistics, a 10% increase in society’s mobility translates into 0.5% GDP growth and an additional long-term increase in labour productivity by 0.07% a year. (source: InterVISTAS, 2015, "Economic Impact of European Airports. A Critical Catalyst to Economic Growth", PWC)

• A 10% rise in airline seat availability can account for up to 1% GDP growth. In the case of the United Kingdom, a 4% increase in tourist traffic has been reported as well, while imports grew by 1.7% and exports by 3.3%.

(Source: PWC data for the UK Airports Commission)

• The experience of other countries indicates that large airports have a significant share in generating GDP:

Paris’ De Gaulle Airport (CDG) provides 195,000 jobs and adds EUR 17 billion to France's GDP (72 million passengers in 2018).

Madrid’s Barajas Airport (MAD) provides 300,000 jobs and contributes to Spain's GDP to the tune of EUR 15.2 billion (58 million passengers in 2018). (source: EY "Impact of Solidarity Transport Hub on the Polish economy" of July 11, 2017)

• For 10 jobs created in the aviation industry, 26 more jobs are generated in the supply chain. (source: Oxford Economics)

• Each job created in aviation creates 3 new jobs in other branches of the economy.

In turn, each EUR 1 generated by the aviation sector generates EUR 3 in other sectors of the economy. (source: European Commission, Aviation Strategy for Europe).

• In the Concept of the Solidarity Transport Hub Poland of November 7, 2017, transport is described as one of the key components of the European economy. It accounts for about 7% of GDP and 5% of employment in the EU.

SOLIDARITY AIRPORT AND POLISH GDP AND JOBS

• According to the Ministry of Infrastructure, the establishment of the Hub should ensure an increase in budget revenue by at

least PLN 2.4 billion annually and a further PLN 4.7 billion due to an increase in GDP. • According to the Hub concept adopted by the cabinet, as a result of the construction of the Solidarity Transport Hub Poland, a total of 150,000 jobs will be created, including some 40,000 in the immediate vicinity of the hub and approximately 110,000 in related sectors of the economy, e.g. logistics, tourism, hotel industry, construction, retail and services sectors.

AVIATION MARKET GROWTH

• The aviation market is growing at a rapid pace. In 2017, for the first time in history, the number of air passengers exceeded 4 billion worldwide. According to estimated IATA data, by 2036 this number is expected to double to 8 billion.

• According to PWC data, in 2015, Polish airports served over 30 million passengers in total, in 2016 over 34 million, and in 2017, 40 million. The upward trend is maintained.

In 2018 almost 46 million passengers passed through Polish airports (a 15% increase yearon-year).

• Warsaw’s Chopin Airport is approaching the limits of its capacity. In 2017, it served 15.75 million passengers, up by 23% on 2016.

In 2018, the number of passengers at Poland’s largest airport exceeded 17.75 million, an increase of nearly 13%.

• The runway capacity of Chopin airport has been exhausted. There are from 38 to 40 take-offs and landings there a day. Up to 42 operations per hour are performed in peak hours. In the summer season, what is known as the environmental capacity of 600 takeoffs and landings a day has been approached.

The development of the airport is limited by a restricted use zone and the fact that night flights are not allowed.

The Solidarity Transport Hub Poland is to be situated between Warsaw and the city of Łódź, which will integrate air, rail and road transport. As part of this project, the Solidarity airport will be built over an area of approximately 3,000 hectares at a distance of 37 km west of Warsaw. In the initial stage, it will be able to serve up to 45 million passengers annually. The Hub will also include rail investment projects: a railway station in the immediate vicinity of the airport with links to other parts of the country. It will now be possible to reach the largest Polish cities from Warsaw within 2.5 hours or less. The investment project should enable the creation of over 150,000 new jobs. In the Solidarity Transport Hub area, an Airport City project will be implemented, featuring congress, conference and office facilities. CPK is wholly owned by the Treasury as a company which is strategic from the point of view of national interests.

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Source: CPK

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IN TRANSIT A well-developed road infrastructure is indispensable for a country's economic development. The need to modernise it was, in fact, one of the reasons why Poland was so keen to join the European Union. Before accession talks got underway, Poland just had a couple of short sections of motorways.

E

ven ahead of accession day on May 1, 2004, Poland had become the beneficiary of ISPA (Instrument of Structural Policies for Pre-Accession). Along with Phare and SAPARD, it was one of the instruments of pre-accession EU assistance for the ten candidate states. The programme was meant to support economic and social cohesion by providing a share of funding for large environmental and transport investment projects. Poland also benefited from the Cohesion Fund, which made it possible to complete projects which had not been finalised under ISPA. In 2007, the Centre for EU Transport Projects was established, to assist entities in their applications for co-financing from European Funds (2007-2013 and 2014-2020) and the EU financial instrument "Connecting Europe" (CEF).

As Poland celebrates the 15th anniversary of EU membership, it is worth taking stock of what has been achieved with the use of European funding. In the years 2007-2013, 12,005 km of motorways, expressways, national, regional, district and municipal roads were built, along with long stretches of modernised, and new, railway lines. By end-2020, an additional 830 km of national, regional and local roads are to be completed and reinstated, as well as 483 km of motorways and expressways.

The maintenance of national road and motorway infrastructure and its development is the responsibility of the General Directorate of National Roads and Motorways.

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The network encompasses 98 national roads, including 1638.5 km of motorways and 2101.2 km of expressways.

Add to this thousands of kilometres of roads which are the responsibility of local government bodies which also receive EU funding for road construction and repairs.

NEW ROADS

At the end of December, the Centre for EU Transport Projects signed eleven contracts for the financing of projects under the Operational Programme Infrastructure and Environment 2014-2020. A sum of nearly PLN 4.5 billion will be spent on the modernisation and construction of 59 railway stations and railway lines in Poland, dredging access waterways to the Port of Gdynia and the construction of the Warsaw – Grójec S7 expressway section.

Poland is a transit country, which means it can apply for funding from the new European Union financial instrument, Connecting Europe Facility (CEF), which has replaced the TEN-T programme (Trans-European Transport Networks). It supports road, rail, air, sea and inland shipping links of special importance for the development of the European Union, as well as individual infrastructure projects: sea, air, inland shipping and road-rail terminals. In the years 2014-2020, a separate pool of EU funding (over EUR 30 billion) is available for investment projects involving the construction and modernisation of infrastructure in the field of transport (EUR 24 billion,) energy and telecommunications.

TRANSPORT

In Europe, the TEN-T network is to include nine transport corridors. Two of them lead across Poland. One is to link the Baltic with the North Sea (from Helsinki via Tallinn, the Baltic states, Poland, Germany, Belgium to the Netherlands). The other one is to link the Baltic Sea with the Adriatic (from Polish seaports to the Adriatic via the Czech Republic, Slovakia, Austria, Slovenia and Italy).

Roads connecting the Baltic states with the Black Sea and the Mediterranean via Poland have been named the Via Carpatia, and a 1000 km long section of the international road E67 from Poland via Lithuania and Latvia to Estonia is known as the Via Baltica. In October 2018, a contract for its last Polish section was signed. The entire route, from the town of Ostrów Mazowiecka north-east of Warsaw to Budzisko on the Lithuanian border, should be ready before the end of 2021, Minister of Infrastructure Andrzej Adamczyk has announced. In 2022 you will be able to drive down the S19 from Lublin to Rzeszów, and in 2025 down to Barwinek on the Slovak border. In 2024, the A2 motorway should take you to Terespol on the Belarusian border.

The joint infrastructure projects (Rail Baltica, Via Baltica and Via Carpatia,) as well as the Mobility Package and the new EU financial plan 2021-2027, were discussed in Tallinn on 10 December 2018 by the ministers of transport from Lithuania, Latvia, Estonia, Finland and Poland, which was invited to participate in this forum for the first time.

STRATEGIC DOCUMENT

The most important directions of transport development in Poland are outlined in the Transport Development Strategy until 2020 (with an outlook until 2030). It applies to road, rail, air, sea transport, inland shipping, urban and intermodal transport. It takes into account the priorities of various European Union policies: transport, regional development, innovation and environmental protection.

It was adopted by the Polish government in 2013, and was modified last year. According to the Strategy, the main objective of the national transport policy is to cut travel time, improve road conditions and safety by creating an integrated, sustainable, innovative and user-friendly transport system in the local, national, European and global dimensions. By 2030, Poland is to build a fully integrated transport system which is to benefit society and the economy, while reducing negative side-effects for the environment. By 2020, 2,800 km of expressways are to be completed, along with 350 km of railway lines, which will allow passenger train traffic at a speed of over 160 km / h.

The updated strategy is expected to be adopted by the cabinet in the first quarter of the year.

INTERMODAL TRANSPORT

With each newly commissioned road, there is bound to be more traffic. More massive lorries will roll down Polish roads, including international trailer trucks 18.75 m in length, with a total weight of up to 40 tonnes. Back in 1996,

the first campaign was organised under the slogan "Truck to rail," during which operators were urged to combine different types of transport to form a single system: intermodal transport. At its core lies the transhipment terminal where cargo is transferred from one means of transport to another. In 2017 Poland had 30 terminals (five more than the year before), six of which handled sea-rail and sea-road transhipments and 24 handled rail-road transhipments. Their combined annual capacity was 8.8 million TEU (Twenty-foot Equivalent Unit), 6.1 million at seaport terminals and 2.7 million at inland terminals. A total of 60.8 million tonnes of containerised cargo were transhipped there, including 37.8 million tonnes transported by sea (38.0% of all cargo transhipped at sea and land terminals), 11.9 million tonnes (34.0%) were carried by road and 11.0 million tonnes (28.0%), by rail. Mixed cargo prevailed (14%). 11.2 million tonnes of cargo - 98% of domestic cargo – were carried in containers with the use of the intermodal system.

Last October, the Centre for EU Transport Projects published a list of 31 projects which received funding under measure 3.2 Development of maritime transport, inland waterways and multimodal connections, group C intermodal transport. The vast majority of projects (with a total value of EU funding of PLN 1.133 billion) concerns the purchase of rolling stock. But two largest-scale operations which received EU funding involve the purchase by PKP Cargo of flatcars for intermodal transport (EU funding of PLN 183.4 million) and multi-system locomotives and cars intended for intermodal transport (EU funding of PLN 92.4 million).

Last December EU funding to the tune of PLN 682 million became available for eight investment projects designed to improve road safety, increase the amount of cargo transported by rail and ensure efficient inland shipping down the Odra river. These include, among others, the purchase by Rail Capital Partners of twelve new electric locomotives, equipped with Diesel modules for non-electrified track sections, to be used in intermodal transport in the ROSCO formula; the purchase of modern intermodal rolling stock (locomotives and flatcars) by LOTOS Kolej and a project involving the modernisation and extension of the Intermodal Terminal in Małaszewicze on the Belarusian border, together with the purchase of equipment.

In January, the Centre signed a contract under which Erontrans will receive EU funding from the Operational Programme Infrastructure and Environment 2014-2020 for the development of intermodal transport through the purchase of semi-trailers for vertical transhipment.

In a poll commissioned by the Institute of Citizens' Affairs, 87% of the respondents supported the idea of "truck to rail." But can these investment projects convince those who believe that trucks are bad for the surface of roads (according to 91% of respondents) and disturb other drivers • (76%)?

Jerzy Bojanowicz

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TRANSPORT

RECORD CAR SALES Is the Polish car market in good shape?

The new car market in Poland is developing, though not quite the way we would like it to. The numbers are impressive. Last year, over 530,000 new passenger cars were registered. Adding to that delivery vehicles, the number was 600,000. If we also take into account used cars, over 1,600,000 vehicles were sold, which was the best result in history. However, we are not fully satisfied with the sales structure.

Under normal conditions, the share of corporate clients does not exceed 50%, and in Poland’s case, companies account for over 70% of clients. If we realise that some buyers are self-employed persons who pursue business activities, then the share of businesses may turn out to be up to 90%.

PM

The number of cars registered in Poland last year was the biggest in history, WOJCIECH DRZEWIECKI, President of the Samar Automotive Market Research Institute, tells Jerzy Mosoń. In an interview for “Polish Market,” he talks about new trends in car sales, explains what sets the Polish market apart, and introduces a new catalogue which promises to revolutionise the car sales system in Poland.

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What does it mean?

This means that Poles are still trying to make purchases as pragmatically as possible. Of course, this is bound to change as wages in Poland grow and tax deductions are lowered for vehicles to be used as company cars. Secondly, financial tools are going to play a much bigger role in gaining mobility.

PM

TRANSPORT

“

FINANCIAL TOOLS ARE GOING TO PLAY A MUCH BIGGER ROLE IN GAINING MOBILITY. CAR SHARING, FOR EXAMPLE, IS BOUND TO BECOME MORE POPULAR, AND MANUFACTURERS WILL NEED TO ADAPT TO THIS TREND."

I have deliberately used this particular term, instead of "purchase," because customers’ needs change. Car sharing, for example, is bound to become more popular, and manufacturers will need to adapt to this trend.

But for now, the desire to own a car prevails. It may be poky, but it’s better than nothing. Though it might be better to say "used", instead of "poky." In Poland, the used car market is dominated by imported vehicles. It’s different than in other countries, where imported cars usually are just an addition to domestically manufactured cars, and do not constitute the basis for market development.

Since Poland's accession to the European Union in 2004, its market has opened its gates very wide. Suffice it to say that in 2003, 33,000 imported used cars were registered here. Right after EU accession, in May 2004, their number amounted to some 100,000. In the whole of 2004, it was almost 800,000, and a year later it exceeded one million. On average, cars imported to Poland were 16-17 years old. Now the average age of cars has gone down by several years and the average age of all vehicles on the road is approximately 13-14 years. This means that the Polish car fleet is gradually getting younger.

present-day realities. The website can be accessed from your smartphone. Ultimately, it will include not just configuration options and advanced visualisation, but also various forms of financing options tailored to the client's capabilities. Yes, it promises to be a revolution.

Given such statistics, it should come as no surprise that Poland is merely an assembly plant for motor vehicles and a black hole when it comes to manufacturing its own brands. Is this likely to change?

Just two years ago, there were very few controls over car imports. Poles imported anything they wished, regardless of what shape it was in. Crafty Polish car mechanics then transformed used motors into gleaming showroom cars. However, not always what you saw was what you got.

Not everything could be verified. The market for imported used cars developed very dynamically as a result. Its share is probably likely to decrease, but I wouldn’t count on the reactivation of old Polish brands. It would involve too large financial outlays. That is not to say that there is no automotive production in Poland at all. This country is one of the top manufacturers of car parts in Europe.

Over 600,000 registered new cars in Poland means that more Poles can afford one and we hope things are going to get better and better with each coming year.

So how do you make money using that system?

Well, the cost of preparatory work has been considerable. The data entry team alone numbers eight people. On top of that is an IT team and a professional photo studio which needs to photograph each car. We hope that in the future, we will be able to enter the sales process, which will allow us to commercialise our service.

PM

Is the new Samar Institute catalogue going to revolutionise new car sales in Poland?

Our experience with cataloguing cars dates back to 1998. The latest version of the catalogue reflects PM

What sets the new Samar catalogue apart from others?

There are many catalogues which provide information about cars, including prices. But there are few that feature all available options of models offered on the market, because it is very difficult to show what they have in common. The biggest challenges are associated with premium brands. If the client chooses a given option, it is rarely available as such. It is sold in a more advanced version, something is added or is impossible to order. This makes the whole system complicated. In Europe, companies that offer professional configurations of cars are few and far between, and their services are very expensive. They are aimed at manufacturers rather than individual customers. However, we have created a system which features all the necessary elements and, most importantly, it is free.

PM

PM

I was under the impression that many people still buy a car largely guided by emotions, while a detailed system like this seems very rational.

Car sales trends are changing. The bodies of cars become similar. Even some of the components used by competing brands are the same. The differences between the premium segment and class C vehicles are not as significant as they used to be. In view of these changes, the client has become more pragmatic. Our system is capable of not only showing differences, but also similarities between cars, thanks to which, in some cases, the client will only need to choose a brand, because products themselves will be similar. And that’s where emotions come in, the desire to stand out thanks to a prestigious car brand, or maybe to tone it down. Our catalogue will allow customers • to make more informed choices.

PM

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ECONOMY

POCZTA POLSKA DEVELOPS LOGISTICS IN EUROPE “

I

nternational pallet shipment is a new service provided by Poczta Polska (Polish Post) in Europe. The service can be used to send goods and commodities from Poland to selected European countries, from Europe to Poland and between selected European countries, without the need to transport goods across Poland.

International pallet shipment is another complementary service in the portfolio of postal logistics products. The Poczta Polska strategy provides for the optimum use of its relations with clients, especially in the area of e-Commerce as well as experience and knowhow in the area of logistics. Opportunities offered by the service give clients a chance to take advantage of competition on European postal markets.

The service consists in transporting goods which may be packed, placed on a pallet and not palletised, from the collection point to the point of delivery, using several means of transport. The service is distinguished by a reduction of transport costs through the use of a rented part of the cargo area, regular deliveries across Europe, deliveries to central warehouses, retail chains, clients with dispersed infrastructure, and the ability to track individual consignments.

The introduction of the service stems from the Poczta Polska strategy which is currently being implemented. Expanding the range of logistical services to include international pallet shipments will allow the company to

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compete more effectively for clients, thanks to the possibility of offering them comprehensive solutions in the field of transport logistics. Poczta Polska wants to offer its clients logistical services from A to Z - starting from delivery of a single shipment, to general cargo logistics (e.g. international pallet shipments) to comprehensive logistical customer service.

By providing customers with comprehensive services, and thus improving their business processes, Poczta Polska gets an edge on the competitive market of logistical services, while securing an additional source of revenue. This is especially important in the era of growing service digitalisation, and of clients moving away from traditional services and the growing use of e-products.

A number of clients who already use Poczta Polska’s domestic services, expected it to expand its activities in this direction.

The new service will enable many existing clients who trade in and outside Poland, to order transport services in one place, thus simplifying their logistical processes. It will translate into long-term and profitable relations with clients and a broader scope of cooperation. It will consequently enable Poczta Polska to reach its sales goals.

Before the launch of the new service, Poczta Polska conducted a thorough market research. The process of partner selection posed the biggest challenge. Poczta Polska decided to work with foreign partners to minimise cost, without the need to build its own costly

THE POCZTA POLSKA STRATEGY PROVIDES FOR THE OPTIMUM USE OF ITS RELATIONS WITH CLIENTS, ESPECIALLY IN THE AREA OF e-COMMERCE AS WELL AS EXPERIENCE AND KNOWHOW IN THE AREA OF LOGISTICS." network across Europe. Partner selection was made from among a set of 56 European distribution systems. Three systems submitted a tender. Market research and preparations for the procurement process required a lot of effort in defining the details of cooperation schemes, discussions with partners, system comparative analysis, and finally negotiations.

Currently, Poczta Polska focuses on building up a volume of cargo among existing and new clients to launch shipments to and from Poland. The next step will be to organise direct connections bypassing the partner's warehouse in Germany.

The introduction of further competitive products brings Poczta Polska closer toward achieving its strategic goal of a five-fold increase in revenue from logistical services. •

ECONOMY

LESS RED TAPE? L

ast year, just 14,600 pages of legal documents were created in Poland. That's 46% less than the year before, according to a report by auditing and consulting company Grant Thornton. The report was presented at a conference at the Q22 office tower at 22 Jana Pawła II Street in Warsaw. The snag is that more changes were introduced to legal regulations than before, experts warn.

An analysis of data contained in the "Barometre of the legal environment in the Polish economy," confirms that the number of pages of executive regulations to individual pieces of legislation, has decreased. However, the number of pages of the latter has gone up.

Tax law has changed the most, which can be a real headache for entrepreneurs.

TWO HOURS A DAY

For investors, stability of the law is one of the main factors in deciding whether to take the plunge or not. That is why, the fact that the volume of new legal regulations has decreased, is good news for the Polish economy. But it’s not all plain sailing.

If an ordinary citizen wished to read all new legal regulations adopted in 2018, it would take one hour and 57 minutes a day. It may be significantly less than a year earlier, but it still seems far too much, especially for an entrepreneur, to feel at ease with Polish law. “With this amount of legislation, it is physically impossible to become familiar with it, and if that is the case, it is very difficult to adhere to it,” said Tomasz Wróblewski, Managing Partner at Grant Thornton Poland.

AN OPPORTUNITY FOR LAWYERS

Such a large amount of time needed to find out about new regulations, means that seeking legal assistance is essential, including subscription services. This may spell good news for legal advisers and partners of law firms, but to entrepreneurs it means higher cost of running a business, and consequently, less competitive edge compared to foreign companies. Things get even more serious if you take a closer look at the report. Although the volume of new legislation dropped in 2018, the amount of tax legislation increased, and this is the area which matters the most

THE NUMBER OF PAGES OF LEGAL ACTS PUBLISHED IN THE DZIENNIK USTAW OFFICIAL GAZETTE (ACTS AND EXECUTIVE REGULATIONS)

Source: Grant Thornton calculations based on www.dziennikustaw.gov.pl

— Acts — Executive regulations for business. Nevertheless, Minister of Entrepreneurship and Technology Jadwiga Emilewicz believes that the entrepreneurs are confronted with less red tape. “In lawmaking, we are trying to introduce the one in-one out principle, for the number of new regulations to match the number of market novelties,” said the minister during a press conference devoted to conclusions stemming from the report.

“

IN 2018, PARLIAMENT ADOPTED A TOTAL OF 362 PAGES OF TAX LAWS, THE HIGHEST NUMBER SINCE 2004."

RECORD CHANGES IN TAX LAW

Based on the Grant Thornton report, in 2018 Parliament adopted a total of 362 pages of tax laws, the highest number since 2004 when the new VAT Act came into force. At the beginning of the year, the five main pieces of tax laws numbered 1,330 pages, but by the end of 2018, amendments to these laws fit into just 314 pages. Compared to the laws themselves, the volume of amendments amounted to 23.8%.

FEWER REGULATIONS

The decline in the overall number of pages of new legal regulations stems from fewer executive regulations to particular acts. In 2018, their number went down to 11,300,

the lowest since 2012. In 2017, new executive regulations numbered 24,500 pages. But in practice, the total number of pages of legal acts went up. In 2017 they filled 2,615 pages, while as many as 3,357 were created last year. Does it mean that the number of executive regulations to adopted laws is going to increase this year?

According to Grant Thornton experts, last year more detailed regulations were shifted to legal acts themselves, and not to lower-level executive regulations. If that is the case, it is unlikely that ordinary citizens will be flooded with thousands of pages of new executive regulations.

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ECONOMY

ECONOMIC

OPENING OF THE YEAR

The 8th edition of the Economic Opening of the Year was held in Warsaw on February 20. The main topic of the conference was Industry 4.0. Other topics included the New Silk Road and Chinese investments in Poland. The need to increase the competitiveness of Polish companies was raised. The financing of small and medium-sized firms and access to EU funding were also examined. Experts discussed the digitisation of transport and the implementation of the Smart Factory concept. Nearly 300 participants gathered at the conference to talk about forecasts, threats and opportunities facing Poland, Europe and the world in 2019.

The possible impact of Brexit for Polish entrepreneurs featured prominently in almost every presentation.

T

he conference was opened by President of the Polish Chamber of Commerce (KIG) Andrzej Arendarski who emphasised that the Polish economy was very stable. He added that, while this year the nation was likely to focus on domestic issues such as parliamentary elections coming up in the autumn, Poland should not lose sight of the European and global economic context.

“Important events await us. In Europe, there are elections to the European Parliament and a new EU financial plan, which we don’t know what it will look like. A trade war is on between the US and China,” said the President of the Polish Chamber of Commerce. He also noted that it was important to improve the competitiveness of the Polish economy, especially in terms of Industry 4.0, which not only concerns globalisation processes, but also problems reported by small enterprises.

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Minister of Investment and Development Jerzy Kwieciński and Marcin Ociepa, Undersecretary of State at the Ministry of Entrepreneurship and Technology, also addressed the conference. Jerzy Kwieciński described 2018 as a very good year for the Polish economy.

“We achieved a 5.1% GDP growth, the highest in 11 years. It is one of the highest growth rates in Europe,” said Minister Kwieciński, adding that it was three times higher than the average growth rate in the euro zone. The Minister of Investment and Development also said that Poland had achieved very good results in foreign trade, increasing exports to its main trade partners. “In Poland, we can see better and better quality of investment. We are attracting investments to Poland with an innovative economy, we are attracting technologies and solutions which complement the Polish economy. Poland has been included in the group of developed countries, we have

carried out a rapid economic transformation.

Poland is regarded as an example of how European funds can be used in an effective way.

We are held up as a model,” he said. Minister Kwieciński also underlined the decline in unemployment, which is the EU’s third lowest now. “67% of the population positively assess the financial situation. This is a very important issue for us,” emphasised Minister Kwieciński. According him, 2019 is a year full of economic challenges, and one of the most important of them will be Brexit.

He said that the Polish government was busy working on the implementation of large-scale programmes meant to put the economy in an even higher gear, for example Accessibility Plus, Housing Plus and the National Road Construction Programme. Other goals include the development of local communities as part of the local road development project and the Bridges for Regions project.

ECONOMY

"What has happened in Poland is a kind of miracle: the economy is balanced, and at the same time we have high GDP growth."

President of Narodowy Bank Polski (Poland's central bank) Adam Glapiński

"2019 promises to give analysts food for thought, not just when it comes to political processes, but also the economy. An economic slowdown has hit the EU and the rest of the world. Last year Poland proved immune to it.

In Q4 Poland's growth was four times higher than in the EU as a whole and eight times higher than in Germany. Poland’s growth rate has been driven by demand. Our goal is to maintain growth at 3.8%, but we are aiming for up to 4% or slightly more," said Jerzy Kwieciński.

Marcin Ociepa, Undersecretary of State at the Ministry of Entrepreneurship and Technology noted that 2019 is an election year, and supporting entrepreneurship should become the subject of a positive debate, in the sense of proposing solutions to create a climate conducive to business. He emphasised, however, that the vast majority of the electorate sees its priorities elsewhere. That is why it is so important to highlight the role of business and entrepreneurship, to introduce the entrepreneurial spirit to schools and local government.

Looking ahead to the next few months, minister Ociepa focused on the need to find Solutions to Brexit, a new challenge which is facing all of Europe. “Despite a number of support instruments which have already been introduced for Polish entrepreneurs, there is still a lot of work to be done,” he underlined.

“Many entrepreneurs think that if they do not cooperate directly with British partners, Brexit will not affect their operations. It is not so easy to explain why it is not the case. We are part of the European community and some Brexit fallout seems inevitable.” Minister Ociepa also announced that, on the initiative of

the Warsaw Stock Exchange, a lobby centre for Polish business, to be called Business Poland House, is to be set up in Brussels soon.

“A stronger presence of Polish business in Brussels is needed. We want to celebrate the 15th anniversary of Poland's presence in Brussels in this way. We want this institution to be set up before the new term of the European Parliament,” he said.

The special guest of this year's edition of the event was President of Narodowy Bank Polski (Poland's central bank) Adam Glapiński. His speech began quite optimistically. “Last year was very good with rapid economic growth.

This year is going to be a bit worse, but it will still be good, compared to the rest of Europe.

What has happened in Poland is a kind of miracle: the economy is balanced, and at the same time we have high GDP growth. According to preliminary estimates by Statistics Poland, last year it amounted to 5.1%. No monetary policy instruments need to be introduced,” President Glapiński pointed out. He stressed that if Poland continued to grow at a rate of 3.6 – 4% this year, "the miracle will continue, because the growth rate will be high in the absence of inflation."

The biggest challenge for the Polish economy in 2019 will be to maintain economic growth in the face of the global downturn.

Adam Glapiński added that the European economy had entered a phase of chronic decline.

Referring to interest rates, he said: “We have relatively high interest rates, we can lower them, but there is no need to. (...) All the instruments at the disposal of the ECB, also in legal and technical terms, are available to us with the slight difference that we do not have such a large securities market. (...) These are tools prepared in the event of an emergency a downturn. Just as in the EU, this happened when economic growth went down to almost zero or below zero, and at the same time interest rates also went down to zero and there was no way out other than quantitative easing.”

The President of the National Bank of Poland said he believed that by the end of his term of office, i.e. 2022, there would be no need to use non-standard instruments unless an "economic collapse" occurs.

A debate that followed was devoted to Chinese investments in Poland and economic

relations between the two countries. The participants were Katarzyna Golik of the Institute of Political Studies at the Polish Academy of Sciences, Bank of China Director of Corporate Relations Bartosz Komasa, Dariusz Kurdas, Vice President of Liugong Dressta Machinery, Dominik Mierzejewski of the Asian Affairs Centre at the University of Łódź and Austin Zhang, Huawei Communications Director for Central and Eastern Europe.

Another debate was entitled “Why is it high time to increase the competitiveness of Polish companies?" It was devoted to the condition of the Polish economy in the international context. Piotr Soroczyński, Chief Economist at the Polish Chamber of Commerce, and Aleksander Szalecki, Stratego Managing Partner, spoke about the future of EU funding. The importance of logistics and transport in industry was highlighted by Maciej Starzyk, manager of the transport and logistics team at PwC. Ignacy Morawski of SpotData presented a report on the competitiveness of Polish companies on the European market, emphasising Poland’s growing position on the economic map of Europe. The Smart Factory concept and its effects on industry were presented by Siemens Marketing Director Cezary Mychlewicz. Włodzimierz Kuc, Director of the R & D Investment Department at the National Centre for Research and Development (NCBR), presented financial instruments offered to venture funds. Presentations were also made of startups - beneficiaries of NCBR programmes: Eko-HUB S.A., Smart Soft Solutions sp. z o.o. and Altlight.

Adam Jasser, former government minister and President of the Office of Competition and Consumer Protection, spoke about opportunities and threats posed by Brexit. The closing debate concerned public sources of financing in the sector of small and medium-sized enterprises and startups. It was attended by Prof. Aleksander Nawrat, Deputy Director of NCBR, Maciej Ćwikiewicz, President of PFR Ventures, Arkadiusz Lewicki, Director of KPK IF PUE, Krzysztof Melnarowicz of the Polish Agency for Enterprise Development and Marcin Seniuk, the Agency’s Acting Director of the Startup Development Department.

• (Sources: Polish Market, KIG)

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ECONOMY

BEYOND GDP Ewelina Janczylik-Foryś

A

fter five quarters of GDP growth above 5%, in the past few months the Polish economy appears to have slowed down a bit.

This trend is likely to continue this year, although it is unclear to what extent this might happen. Roman Przasnyski, Chief Analyst at Gerda Broker, points out that Statistics Poland has confirmed its earlier projection for the fourth quarter of last year, according to which GDP growth amounted to 4.9%. Economic growth has been mainly fuelled by domestic demand, which was 4.8% higher than in the previous year. Total consumption, just like a quarter earlier, increased by 4.3%, but the pace of growth in household consumption expenditure slowed from 4.5 to 4.3%. It is still high, and in the second half of this year, consumption growth may be affected by a newly announced package of welfare benefits. Investment growth in the fourth quarter of 2018 amounted to 6.7%, significantly down from the 9.9% growth recorded a quarter earlier.

An encouraging, though small (0.2%), impact on GDP growth rate of the export surplus comes as a pleasant surprise. In the third quarter, rising imports had slowed economic growth. As the Gerda Broker analyst adds, unfavourable phenomena in Poland’s environment, especially in the eurozone and in Germany, are bound to negatively affect the Polish economy. The slowdown in GDP growth in the fourth quarter of 2018 was slight, mainly due to high consumer confidence. This year, Poland is bound to face some negative external factors, which may be offset by strong fiscal incentives at home that should help in maintaining growth. For now, the result of these opposing trends is difficult to predict, but it seems quite possible that GDP growth in excess of 4% may be achieved.

The publication of the latest Statistics Poland data on GDP growth and the Polish economy coincided with a proposal by the Polish Economic Institute to introduce an alternative development index for individual

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economies, such as the Responsible Development Index. The Institute’s director outlined the historical background behind the GDP concept at a conference where the “Responsible Development Index ... GDP is not enough " report was presented. “Until the 1930s, the concept of GDP had not existed. It was introduced after the Great Depression in the US, whose administration wanted to know what was happening in the American economy,” says Piotr Arak, director of the Polish Economic Institute. During WWII, industry played a key role due to armaments, the manufacture of tanks, guns, etc. In 1934, the GDP Index was proposed by Simon Kuznets, an economist born on Polish territories at the turn of the 20th century. He emigrated to the US in 1922. Years later, in 1971, he received the Nobel Prize for his research. Although the GDP concept is widely used, it has been criticised because it fails to reflect society’s prosperity levels and does not take non-productive factors into account. In the 1960s, what are known as social indicators, gained popularity as an alternative to GDP. Since 1990, the Human Development Index (HDI) developed by the Pakistani economist Mahbub ul Haq has been used in UN reports.

According to Piotr Arak, GDP is likely to remain an important index, in fact it may be irreplaceable in national accounts. Nevertheless, the Polish Economic Institute has come up with its own Responsible Development Index.

"Tools developed in recent years have usually had drawbacks. They only cover a specific group of countries and are based on too many indicators," explains Piotr Arak.

WHAT ARE OTHER INDICES FOR?

According to Marek Lachowicz, head of the Macroeconomics Team at the Polish Economic Institute, the problem with GDP stems from its definition. GDP takes into account production and not social inequalities or non-productive factors that affect

production, such as public health and weather conditions. GDP may not be perfect, but it is the only commonly used index, and likely to remain so for a long time to come. So what is the point of creating new indices, you might well ask.

Marek Lachowicz says that the Institute has developed the new index to introduce a Polish voice into the debate on how to measure society’s prosperity. Creating sustainable growth indices offers a chance to discuss the path of development. A number of bodies and organisations, including the European Commission and OECD, focus on the topic of inclusive development. "We would like to join in this debate, but our contribution cannot solely be based on the assessment of existing research instruments.

Our Responsible Development Index proposal is also an invitation to further discussions among scientists," he says.

Many researchers have tried to develop their own sustainable growth indices. The Institute’s team believes that they are all flawed. They are limited to a certain group of countries, e.g. EU member states. Some are based on too many factors, while other indices are based on surveys, the results of which can be subjective. Despite the same objective conditions, each respondent in a given country may view the situation differently, there are so many different points of view. For example, respondents in countries A and B may assess the quality of education in their own country as very different from the other’s, although objectively it is identical (assuming that there is a completely objective way to measure the quality of education). This natural phenomenon can affect the final results.

POLAND IS THE WORLD’S 29TH ECONOMY, ACCORDING TO THE RESPONSIBLE DEVELOPMENT INDEX

The list is topped by Switzerland, Norway and Sweden, while Poland takes the 29th

ECONOMY

“

DURING THE DISCUSSION, THE FACT THAT DIGITAL TRANSFORMATION IS NOT INCLUDED IN THE GDP WAS ALSO MENTIONED, WHILE THIS TRANSFORMATION NOT ONLY AFFECTS THE DEVELOPMENT OF SOCIETY, BUT ALSO OF THE ENTIRE ECONOMY.” From left: Piotr Arak, Małgorzata Starczewska-Krzysztoszek, Ph.D., Paweł Borys, Marek Dietl, Katarzyna Śledziewska, Ph.D., and Prof. Krzysztof Marczewski

place, up two points since 2015. The low level of social inequality and the high life expectancy level are behind the good result scored by Poland.

The Responsible Development Index is based on three pillars that measure current prosperity, the ability to reach prosperity in the future and the sense of well-being stemming from non-wage factors. It is based on a set of eight indicators, which are objective statistics derived from the World Bank and the World Health Organisation. The index is calculated for 162 countries and territories. The average per capita GDP in the top 30 countries is approximately USD 45,000, while only in four countries it is below USD 25,000. Switzerland tops the list, followed

by Norway and Sweden. Poland has overtaken such countries as Portugal and China.

There are fewer inequalities in Poland than in countries from the very top of the list, e.g. Germany and Japan, which may have been influenced by the development of the welfare benefits system. Life expectancy is one more reason to cheer. Unfortunately, in terms of per capita spending on research and development, the number of doctoral students and trademarks registered per capita, Poland has scored very poorly. Unfortunately, these are the barriers affecting Polish innovation, but it should be noted that measures have been taken to improve this situation. Although Poland has not yet reached the level of top-ranking countries, within the Visegrad Group (Poland, the Czech Republic, Slovakia and Hungary) it ranks only slightly below the Czech Republic. Compared to other Central European countries, Poland fares relatively well.

The Visegrad countries are in many respects similar to Poland, not only due to economic factors, but also geographical and cultural factors. Poland occupies the 29th place in the Index, the Czech Republic is 23rd, Slovakia 27th, and Hungary 37th.

Piotr Arak points out that Poland's main strength lies in non-wage factors: it is a safe country and its life expectancy is high.

In this respect, Poland has overtaken even some Top 10 countries, such as Finland and Belgium. In the pillars that measure current prosperity and the country's ability to build it in the future, Poland ranks in the late thirties and in early sixties respectively, while in both it is moving upwards (2.3% in the second pillar and 0.7% in the third pillar as compared to 2015,) the director of the Polish Economic Institute notes.

IS GDP NOT ENOUGH?

Work on the new index provided a good opportunity to look at the legitimacy of GDP, its advantages and disadvantages, but also to take up the subject of what can be changed in the most common index. During the debate, Marek Dietl, President of the Warsaw Stock Exchange, praised the initiative of the Polish Economic Institute. He also highlighted the position of Central European countries.

“A report by the Polish Economic Institute which presents the concept of a new index, is a valuable initiative because each additional piece of information allows us to better describe the reality around us. The document emphasises the position of Central European countries, whose economic performance is very similar. From the point of view of the capital market, these countries

appear similar to each other in a number of ways, which points to the need for continued cooperation between them,” he said.

Paweł Borys, President of the Polish Development Fund (PFR,) said that other indices were needed, but GDP is the key. He stressed that the new index does not measure sustainable development. As he put it, the key is the ability to meet current needs in such a way that future generations can satisfy their needs, too. Paweł Borys pointed to certain simplifications, for example the choice of just one factor that determines environmental pollution – the annual concentration of particulate matter of an under-2.5 micron diameter (PM2.5.) He added that Poland aspired to enter the Top 20.

During the discussion, the fact that digital transformation is not included in the GDP was also mentioned, while this transformation not only affects the development of society, but also of the entire economy.

Katarzyna Śledziewska, D.Sc., Managing Director of DELab UW, said that GDP does not include digital transformation. “We are not able to measure technologies, in addition, we find it hard to estimate the prices of services which use technology. Using technology, we become prosumers, i.e., we ourselves produce certain services. We look for a flat without approaching a real estate agent, we use free internet calls and videoconferences, which we earlier had to pay bills for. We have access to lots of shareware, on the basis of which innovative solutions can be built.

GDP does not take all this into account. According to Katarzyna Śledziewska, it is estimated that the use of new technologies adds about 30% to the value of GDP. • 3/2019 polish market

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ECONOMY

JUBILEE

GOLDEN

ENGINEER GALA

“

There is no modern state without R&D, no modern industry, no modern production, no innovation,” Polish President Andrzej Duda told the winners of the Golden Engineer title at the 25th Golden Engineer 2018 award ceremony, which was held at the Presidential Palace in Warsaw on February 27. He pointed out that the prize was awarded for the engineers' activities in an exceptional year: the 100th anniversary of Poland’s return to the map of Europe. “We want Poland to become a modern state - part of modern Europe, and modern world. We don’t just want to be an assembly plant. We want to have our own inventions.

Polish universities of technology are at a very high level.

I hope that in the future our engineers will work in Poland, at our universities, in our institutes, our companies, various R&D centres,” said Andrzej Duda.

The title of Diamond Engineer went to Józef Siwiec, President of ZM Ropczyce. From left: Polish President Andrzej Duda,Ewa Mańkiewicz-Cudny, editor-in-chief of "Przegląd Techniczny," and Józef Siwiec

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Ewa Mańkiewicz-Cudny, editor-in-chief of "Przegląd Techniczny," noted that Polish engineers made a significant contribution both to the fight for independence and to the building of the reborn state. “A whole array of Polish engineers built the port of Gdynia, the Central Industrial District, the aviation industry. Polish inventors made this country famous, including Jan Czochralski - the inventor of silicon electronics, and Mieczysław Wolfke, who contributed to the invention of holography and television. It is also worth remembering about the contribution of Polish engineers to the victory of the Allies over the Third Reich during WWII. After the war, engineers took up the task of rebuilding the country, which in the political circumstances of the day, was not easy. Those who remained in exile also made Poland’s name famous,” she said.

The ceremony was attended by, among others: Andrzej Dera, secretary of state at the President’s Office, Małgorzata Oleszczuk, President of the Polish Agency for Enterprise Development, Janusz Samuła, director of the Department of Innovation and Development of the Office of Technical Inspection, Tomasz Schweitzer, President of the Polish Committee for Standardisation, Sebastian Skuza, Undersecretary of State at the Ministry of Science and Higher Education, and Grzegorz Tobiszowski, Secretary of State, Government Commissioner for the Restructuring of Coal Mining.

But the most important participants of the Gala were 25 winners – engineers who received the Young, Distinguished, Silver and Gold, Honorary and Diamond distinctions. Three Golden Engineer awards were also presented.

The idea of the plebiscite was born when "Przegląd Techniczny" journalists noticed that technology was being relegated to the side-lines, while young people in the 1990s much preferred to take up marketing and management.

Now, interest in technical studies has picked up again.

The title of Diamond Engineer went to Józef Siwiec, President of ZM Ropczyce, and statuettes of the Golden Engineer of the quarter of the century were awarded to Prof. Michał Kleiber, Zbigniew Śmieszek, D.Sc., and Andrzej Sajnaga.

ECONOMY

Honorary Golden Engineer awards went to Minister of Investment and Development Jerzy Kwieciński, graduate of the Faculty of Materials Science at the Warsaw University of Technology, and Prof. Grzegorz Pawlicki, graduate of the Medical University and founder of biomedical engineering studies at the Warsaw University of Technology. The gala ended with a performance by soloist of the Polish Royal Opera Leszek Świdziński a winner of the Honorary Golden Engineer 2017 title and founder of the European Foundation for the Promotion of Vocal Art. After the Jubilee Gala at the Presidential Palace, another event was held at the Engineers House built in 1903-1905 out of donations from the research community. Ewa Mańkiewicz-Cudny presented this year's laureates with the Golden Engineer Club distinction. She noted that the 26th Congress of Polish Engineers and the 4th World Congress of Polish Engineers, will take place on June 13-15 in Krakow. The “Przegląd Techniczny” editor-in-chief welcomed Prof. Piotr Moncarz of Stanford University, Lucjan Sobkowiak, President of the Association of Polish Engineers and Technicians in France, and Janusz Zastocki, honorary president of the Polonia Technica Association of Polish Engineers and Technicians in the United States.

The 153-year-old “Przegląd Techniczny” magazine thus once again celebrated the successes of Polish engineers during the anniversary year, which gave the award gala a special splendour.

•

From left: Andrzej Duda, Ewa Mańkiewicz-Cudny, Minister of Investment and Development Jerzy Kwieciński, Prof. Grzegorz Pawlicki, Prof. Michał Kleiber and Zbigniew Śmieszek

Victoria Jankowska Foundation it gives us pleasure to inform you that since January 1, 2019 the Victoria Jankowska Foundation has been a public benefit organisation. our mission is supporting musicians in all their artistic initiatives and organising master’s harp courses. For any information about our to-date activity see the Foundation’s website: www.victorii-jankowskiej.pl and our Facebook fanpage: https://www.facebook.com/Fundacjaim.VictoriiJankowskiej/ we will be grateful if you offer us 1% of your personal income tax, indicating the intention in your Pit declaration for 2018 with the reference “for the statutory purposes of the Foundation.”

The Management Board and council of the Victoria Jankowska Foundation krs 0000583149

CULTURE

ATTENTION – AUCTION OUR INVITATION TO AUCTIONS OF WORKS OF ART

From the March issue of “Polish Market” we run a regular column devoted to auctions of works of art on the Polish market. In this issue we invite you to Warsaw to Desa Unicum Auction House, the largest and one of the oldest firms operating on the Polish art market. Every year Desa Unicum holds a few dozen auctions featuring old masters, contemporary and latest art, decorative art, photography and even comic books. The auction house is preparing two interesting auctions to be held in April.

Maciej Proliński COLLECTIBLE PHOTOGRAPHY AUCTION – APRIL 4, 7 P.M., 1A PIĘKNA STREET, WARSAW

The coming auction of collectible photographs will feature works of Polish classics and artists of the younger generation who have already won recognition in the community.

The auction offers an opportunity for collectors to bid for exceptionally valuable photographs from Stanisław Ignacy Witkiewicz’s “Improvised Scenes.” Since his childhood Witkiewicz - one of the most outstanding Polish artists of the 20th century, author of novels and theatre plays, philosopher and theorist of art, painter and draughtsman – was an enthusiast of photography. He not only took photographs himself but also collected them. Among the works offered at the auction will also be photos by Zbigniew Dłubak, a leading Polish avant-garde photographer, taken in the late 1950s and early 1960s, neo-avant-garde pictures by Zdzisław Sosnowski and conceptual photographs by Eustachy Kossakowski from his series “The Lights of Chartres.”

There will also be works by younger Polish artists, like for example Paweł Bownik. In 2014, his photographs from the series “Disassembly” won the title of Photographic Publication of the Year. The feminine element will be represented by works of Natalia LL, a pioneer of feminist art in Poland. Born in Żywiec in 1937, the artist deals with painting, drawing, performance art, video art and photography. In her artistic practice, she has used the iconography of popular culture and mass media. In 2018, the artist won one of the most important artistic awards in Germany: Rosa Schapire Art Prize.

CONTEMPORARY ART AUCTION. WORKS ON PAPER – APRIL 25, 7 P.M., 1A PIĘKNA STREET, WARSAW

This auction is an opportunity to acquire top works of mainly Polish artists. It will feature pieces by Edward Dwurnik (1943-2018), Stasys Eidrigevicius (1949, Medinskaiai, Lithuania), Eugeniusz Markowski (1912-2007) and

other well-known artists. A highlight at the auction will definitely be Dwurnik’s work “Without Title” from his “Paris” series. It is one of the 35 sketches, ink drawings and drawings coloured in tempera which the artist made in 1967 during his stay in Paris when he was still a student.

Although made at the start of Dwurnik’s artistic career, the works show traits that later became so characteristic of his art. Over the nearly 50 years of his artistic activity Dwurnik made nearly 5,000 paintings, around 14,000 works on paper and almost 3,500 prints. The artist developed his own distinct and clear language of art, winning favour with institutions and recognition from viewers and collectors. He depicted Polish realities from the period of People’s Poland to the present time with great humour and irony.

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One of the “Improvised Scenes” by Stanisław Ignacy Witkiewicz.

Courtesy of the organiser

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CULTURAL MONITOR

MARCH 2019 SOME EXCITING CONCERTS, A WELL-KNOWN MUSIC FESTIVAL AND NEW PUBLICATIONS BY THE FRYDERYK CHOPIN INSTITUTE ARE RECOMMENDED FOR CULTURE VULTURES BY MACIEJ PROLIŃSKI

MONIUSZKO LOUNGE One of the halls in Teatr Wielki - Polish National Opera in Warsaw has been dedicated to the 200th anniversary of the birth of Stanisław Moniuszko, known as the father of Polish opera. The idea behind the project is to create a public space which would serve as a mini-museum and a place for meetings with artists which would be bustling with artistic activity. Thus, the programme of the Moniuszko lounge includes a series of meetings with artists, as well as workshops and educational performances for children and adults. Promotions of publications on Moniuszko’s life and work are also held there. Entrance to the hall is by the booking office in the theatre’s left wing. The lounge is open Monday to Friday 9.00-18.00 and from Saturday to Sunday 11.00-17.00, as well as an hour before each performance. Admission is free.

MENUHIN REVISITED One of the most famous violinists of the 20th century, Yehudi Menuhin, visited Poland for the first time 35 years ago this month. His visit inspired the creation of Sinfonia Varsovia, now considered one of the country’s best orchestras. Celebrating the anniversary, the orchestra is to hold a commemorative concert at Teatr Wielki - Polish National Opera on March 23. There will be three conductors, and the programme will include works referring to the company’s rich history. The concert will start with the “Sinfonietta per archi” by Krzysztof Penderecki, the artistic director of Sinfonia Varsovia. Then, the overture to the opera "Italian in Algiers" by Rossini will be performed, which the musicians repeatedly performed and recorded under Menuhin. Conductor and harpsichordist, Hervé Niquet, will be among the conductors to direct "The Sorcerer's Apprentice" by Doukas. The young American conductor Roderick Cox will perform American classics "2nd Essay for Orchestra op. 17" by Samuel Barber and "Symphonic Dances" from the musical "West Side Story" by Leonard Bernstein. One of the works very often performed by the Sinfonia Varsovia, Symphony No. 1 in D maestro Marzena Diakun will also be on the bill.

LOST, BUT NOT FORGOTTEN An exhibition entitled "Lost Works” is on at the Independence Museum (Brama Bielańska Gallery) until March 31. On show are copies of thirteen paintings lost during World War II which never returned to their collections.

The copies have been made on the initiative of the Polish Cultural Heritage Foundation of famous paintings by Aleksander Gierymski, Maurycy Gottlieb, Marcello Bacciarelli and Józef Chełmoński. Contemporary artists Sylwia Janowska, Aleksandra Pędzisz, Arkadiusz Siarkowski, Tomasz Jaxa-Kwiatkowski, Łukasz Piotr Towpik, Ewa Jasek and Mariusz Zdybał have taken part in the project. Sylwia Janowska, who painted three copies for the Foundation, admits that the project has given her a completely new perspective on painting. “We needed to learn the artist's workshop, spend long hours in museums looking at colours, details, brush strokes. You have to delve into the artist’s life story, read their biography, it requires a lot of time, attention and dedication.

What we see at the exhibition at Brama Bielańska Gallery allows us to enter a world that was taken away from us, plundered and forgotten. It used to be our property, it was beautiful and special,” Janowska says.

IN SEARCH OF DREAMS An unusual duet, pop artist Natalia Kukulska and jazz guitarist Marek Napiórkowski, will appear at the Roma Musical Theatre in Warsaw on March 26 with the concert "In search of dreams." Natalia Kukulska is one of the best known Polish singers with plenty of prestigious awards to her credit. Producer, composer and songwriter Marek Napiórkowski is a leading Polish jazz artist. From the beginning of his career, he has appeared at the top of Polish rankings. Since 2012, Jazz Forum readers have regularly voted him Jazz Guitarist of the Year. The enchanting songs written by Napiórkowski and performed by Kukulska are bound to appeal to both younger and adult audiences. They will be taken on a sentimental journey by the two artists companied by Michał Dąbrówka on drums, Paweł Pańta on double bass and Marcin Górny on keyboards. The show will be complete with colourful choreography by dancer Ilona Bekier.

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CULTURAL MONITOR

TOP EASTER FESTIVAL The 23rd edition of the Ludwig van Beethoven Easter Festival will take place at the National Philharmonic, Royal Castle and Teatr Wielki - Polish National Opera in Warsaw on April 7-19. The event, which was first held in 1997, quickly became a permanent fixture on the Polish and Europe festival circuit. The programme of each edition is different, showing the best in European music. It allows you to find out where Beethoven drew his inspiration from, how his music influenced composers in later centuries and what place his work occupies in the world of contemporary European art. "Our festival gives music lovers the opportunity to listen to great concerts, performed by recognised artists from around the world. From year to year, we get new audiences who divide their time between Luzern and Salzburg, where two festivals of a similar Easter profile take place," says festival organiser Elżbieta Penderecka, President of the Ludwig van Beethoven Society. This year's festival is entitled "Beethoven and romantic song." Among the performers will be the Korean Broadcasting System Symphony Orchestra, Helsinki Philharmonic Orchestra, Dresdner Philharmonie, Tonhalle-Orchester Zürich, Polish National Radio Symphony Orchestra in Katowice, Poznań Philharmonic Orchestra and Shanghai Quartet. Soloists will include baritone Matthias Goerne and pianist Markus Hinterhäuser. Among pieces to be performed are “Symphony No. 1” by Shostakovich, Mahler's “Symphony No. 1,” Songs and “Rebirth” symphony by Karłowicz, Stanisław Moniuszko's last opera "Paria," "War Requiem" by Britten, Schubert's "Die Winterreise" and Beethoven's string quartets.

NEW ALBUMS FROM THE FRYDERYK CHOPIN INSTITUTE Last year’s centenary of the regaining of independence by Poland and this year’s 200th anniversary of the birth of Stanisław Moniuszko (1819-1872,) a composer of songs and operas, including the most famous Polish operas "Halka" and "The Haunted Manor," have prompted the Institute to focus on this key figure in Polish cultural heritage. The Fryderyk Chopin Institute has issued a number of albums featuring Moniuszko's works and more are in the pipeline.

One of the most important releases is the "Dąbrowski Mazurka Anthology" named after the Polish national anthem. Excerpts from the anthem have been quoted and inspired some of the greatest European composers who thus expressed their solidarity with Polish people and support for their struggle for an independent Polish state. Between 1795 and 1918, Poland was absent from the map of Europe, carved up as it was between neighbouring powers Russia, Austria and Prussia.

The series consists of seven CDs featuring recordings made at the renowned Chopin and His Europe Festival, as well as other live and studio recordings. Some outstanding soloists appear in the collection under top conductors and accompanied by well-known symphony and chamber orchestras.

The Liszt and Noskowski album contains the "Salve Polonia" orchestral interlude from the oratorio "Saint Stanislaus" by Liszt and the work "From the life of a nation,” variations on Chopin's Prelude in A major by Zygmunt Noskowski. The Sinfonia Varsovia Orchestra is conducted by Jacek Kaspszyk and Grzegorz Nowak. “Hymns of Europe” features a recording of one of the festival concerts devoted to the Polish anthem and other national anthems. Among the works are a Chopin piece inspired by the Dąbrowski Mazurka and an overture to the opera "Der Pole und Sein Kind" by Albert Lortzing. You can also hear Bach’s variations on the theme "God, Save the King" and Ries’ take on “Rule Britannia.” These works are performed with grace and gusto by Tobias Koch (who plays an Erard of 1838) and the Concerto Köln directed

by Gianluca Capuano. Music by Tansman and Rathaus, two Polish composers of Jewish descent, is also included on the release. Both artists managed to avoid the tragic fate that befell most European Jews during the Holocaust. In the “Polish Rhapsody,” which is dedicated to the defenders of Warsaw, Aleksander Tansman quotes the “Dąbrowski Mazurka,” which sounds particularly strongly in this particular work.

A piano concerto by Karol Rathaus is his dramatic reaction to the outbreak of World War II. Both pieces are performed by the accomplished Israeli pianist Yaara Tal who is accompanied by the National Philharmonic Orchestra under Jacek Kaspszyk. Works by Wagner, Elgar and Paderewski, dedicated to Poland and the Polish nation, include two Polonaises by Wagner and Elgar. The Royal Philharmonic Orchestra is conducted by Grzegorz Nowak. Then comes one of the most popular and most frequently performed works by Ignacy Jan Paderewski "Polish Fantasy," this time in an interpretation by the winner of the Chopin Piano Competition Dmitry Shishkin and the Russian National Orchestra under Mikhail Pletnev. Meanwhile, Elena Baeva and the Royal Philharmonic Orchestra prove that Karłowicz’s violin concerto fully deserves its reputation as one of the finest orchestral works ever written by a Polish composer. The album also features a version of his symphony "Revival," directed by Grzegorz Nowak. Another album included in the collection is the only studio recordings of the cycle. Artists Paweł Wakarecy, Łukasz Długosz, Jakub Jakowicz, Anna Maria Staśkiewicz, Katarzyna Budnik, Andrzej Bauer and Marcin Zdunik present chamber music at its best. There is Mozart's “Symphony in G minor” in a transcription by Johann Nepomuk Hummel, and a little-known string “Quintet in F major” by 19th century Polish composer Ignacy Feliks Dobrzyński, with variations on the subject of the Dąbrowski Mazurka. The collection is complete with Paderewski’s “Polonia Symphony in B minor, Op. 24” performed by the Royal Philharmonic Orchestra under Grzegorz Nowak. It is considered to be one of the most important works in the composer’s output, capturing his profound commitment to the cause of struggle for the revival of the Polish state.

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FOOD INDUSTRY

THE LAND OF

HONEY

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FOOD INDUSTRY

W

e do not seem to fully appreciate the role of bees, which are so important for the pollination process of edible plants. After all, to a large extent pollination determines how bountiful grain harvests and fruit crops are. But the role of bees is perfectly understood at the new Pszczelandia Educational Farm, part of the Pasieka Pucer apiary in the Barciany commune, in the northern Warmińsko-Mazurskie Province. The commune lies in what used to be called Barcja, literally a land of beehives.

Owners of the 62-year-old apiary, Małgorzata and Dariusz Pucer, have set up an educational centre where visitors can learn not only about the health and nutritional values of honey, but also about the role of bees in food production and biodiversity. The apiary lies just off the Green Velo Eastern Cycling Route. Tourists are beginning to flock to the land of beehives.

Visitors to the apiary find out a lot about ecology. Pasieka Pucer is a member of the Polish Ecology Association. In addition to 800 hives, there is an organic farm and an orchard where organic methods of food production are demonstrated in practice. Małgorzata Pucer says that the apiary has decided to organise workshops on the role of bees in nature and organic food with a focus on apiary products and naturally grown food. “This is how the idea for Pszczelandia was born - a place friendly to schools, families and seniors, where we combine the tradition of beekeeping with multimedia and can safely take a glimpse at what goes on inside a beehive. We can find out where honey comes from and how to find the queen inside the hive. We have gained support from EU funding. A modern facility with traditional features is being built. It will be launched in the autumn."

Eight years ago Pasieka Pucer opened a new chapter. It introduced a set of honeys and entered the market with its own brand and logo. It is now a brand of recognised value. The apiary started to export its products to Germany, Switzerland and the UK. Among Polish customers it has gained recognition for an innovative approach to honey packaging as a corporate gift decorated with a company logo or a ribbon.

Małgorzata Pucer’s creativity also manifests itself in products such as raspberries, cherries and wild strawberries bathed in honey. Of course, the fruit is freeze-dried. In 2014, this innovative approach won Małgorzata Pucer the title of Ambassador of Women’s Entrepreneurship. Each year of the apiary’s operation has proved that she really deserved to be honoured with this certificate.

Significant for the quality of honey products is the location of the firm’s three apiaries in the Natura 2000 area. Dariusz Pucer is a third generation beekeeper with extensive experience. "Our apiaries lie among forests and meadows within a protected Natura 2000 area where the use of chemicals is not allowed. In the forests there are old trees, mainly lindens, which create a microclimate. Our linden honey contains 60% of linden pollen, compared to under 20% in other parts of Poland,” he says. These

“

IN THE PAST, BEEKEEPERS DID NOT NEED TO TAKE AN OATH BEFORE THE COURT, THEIR INTEGRITY WAS TAKEN FOR GRANTED. AT PRESENT THEY TAKE ON ONE MORE ROLE: EDUCATION ON BIODIVERSITY AND THE NEED TO CURB THE EXCESSIVE USE OF CHEMICALS IN FARMING."

qualities have been appreciated by many institutions, which have showered awards on this honey, including a Gold Medal of the Natura Food & beECO 2015 Fair in the category of certified Polish products, and a Cup of the Minister of Agriculture and Rural Development for the best organic product at the same edition of the fair.

The first prize was won in the Żagle Warmii i Mazur 2016 competition for the best local product, along with the Discover Good Food and KUKBUK Recommends 2018 certificates.

In the past, beekeepers did not need to take an oath before the court, their integrity was taken for granted.

At present they take on one more role: education on biodiversity and the need to curb the excessive use of chemicals in farming. Chemicals are not just harmful to bees (even up to a third of swarms have been wiped out) but also to consumers. Researchers are sounding the alarm.

When we pick industrially processed food, they say, we put 10 kilos of chemicals inside our bodies, even though the Polish Supreme Audit Office tries to reassure us that it is not more than 2 kilos (Report on the use of food additives.)

You should thus carefully read labels. Some of the latest statistics gives plenty of food for thought. In 2017, honey production in Poland amounted to over 15 thousand tonnes. Roughly the same amount was imported to Poland, mainly from other European Union countries. It would be interesting to find out how much of that is pure honey and how much contains artificial honey. There are so many blended products around. We have to explain to the younger generation that the ECO sector of the food economy should serve as a touchstone and the last stronghold able to protect us against aggressive chemicals.

The emerging Pszczelandia educational farm promises to play such an educational role.

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FOOD INDUSTRY

POLISH FOOD HAS POTENTIAL MIECZYSŁAW TWARÓG, President of the Polish Exporters’ Association

Maciej Proliński

T

he 7th Congress of Agri-Food Exporters took place at the Ministry of Agriculture and Rural Development in Warsaw on March 14. The current favourable level of food exports was underscored, but challenges facing the sector were also highlighted. To further develop the export potential of the agri-food industry, the need for more support for from government and local government bodies was stressed.

Participants in the meeting were agreed that food exports are the driving force behind the development of the agri-food industry. Poland has high quality, organic food products and stands a good chance to increase their exports. Low labour cost and consistently high quality of products are the country’s competitive advantages. According to data released by the National Centre for Agricultural Support (KOWR), the value of agri-food exports in 2018 reached an unprecedented level of EUR 29.3 billion, 5.5% up on 2017. Livestock, meat and meat products top the list of Polish agri-food exports. In 2018 they accounted for 21% of the value of Polish agri-food exports, to the tune of EUR 6.3 billion, 6% more than the year before.

The Polish Exporters’ Association, which organised the congress, believes that under a newly concluded Agreement on Agriculture, support for Polish agri-food exports can be significantly increased. The Agreement conference is meant as a platform for dialogue between the authorities, agricultural organisations, scientists and trade representatives. Its aim is to seek new solutions for this sector of the economy. The first Agreement on Agriculture meeting was held in Warsaw on February 20. The Polish Exporters’ Association believes it is necessary to improve the operation of agri-food companies which export their products and to make it easier for them to seek EU funding. According

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to the Association, the Agreement on Agriculture should cover a comprehensive range of “field to table" activities to boost the development of agriculture. Farmers should be encouraged to form modern structures which will ensure their greater participation in the production, processing and retail chain. They should pool their resources to improve the conditions of agricultural production, logistics and trade. Measures should be introduced to increase the participation of farmers in foreign trade fairs, trade missions and promotion of Polish food brands. Last but not least, strong brands should be built to give agri-food exports an edge. For this purpose, Poland should bet on the production of high quality food and the introduction of new technologies enabling the strengthening of brands.

During the 7th Congress of Agri-Food Exporters, the need to strengthen the activities of economic diplomacy to boost Polish food exports was emphasised. Promotional activities should be stepped up on Asian, African and South American markets, it was pointed out. Those addressing the event noted that these activities would help to maintain the upward trend in agri-food exports. On its part, the Polish Exporters’ Association pledged to work in partnership with banks, entrepreneurs, institutions, government and local government bodies to support innovative, export-oriented activities. A number of Polish food exporters are worried about how Brexit might affect them. The UK ranks among Poland's top 10 trade partners.

It is the third largest market for Polish goods exports, and the second largest market for agri-food products. It is unclear when and under what terms the United Kingdom is going to leave the EU. A hard Brexit would mean the return of customs tariffs. This would hit meat and dairy producers the hardest. Tariffs on agri-food exports to the UK could exceed the level of 28%.

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Economic Monitor Economy

economic Monitor March 2019

Jan Mazurek, Michael Ström / Brokerage House

General economic data Last year saw a rapid pace of economic growth and falling unemployment. But the situation may deteriorate this year.

Poland’s macroeconomic indicators confirm that the economic situation is favourable. GDP growth was high in each quarter of last year. In the fourth quarter, the main driver of growth was domestic demand. In

Source: Statistics Poland (GUS) and National Bank of Poland (NBP)

the industrial, construction, transport and financial and insurance sectors the growth rate was higher than the average figure for the economy. This year the economy is expected to slow down, but the growth rate will continue to be strong.

In January 2019, industrial output growth was satisfactory, but there was only a slight increase in construction and assembly output. Poland recorded a goods trade deficit.

Germany continued to be Poland’s biggest trading partner.

In February, business sentiment in industry and construction improved. In contrast, consumers’ assessments of Poland’s current and future economic situation deteriorated.

In the first two months of 2019, the unemployment rate went up due to seasonal factors. A rise in employment is expected in coming months.

As regards the execution of the national budget, there was a surplus of revenue over expenditure in January. However, it will be difficult to keep the budget deficit planned for this year in check because of the government’s new welfare plans.

Price rise expectations among consumers and managers of manufacturing companies eased as the government abandoned

its plans to implement electricity price increases and because of increasingly strong signals of deteriorating economic conditions in Europe, causing worries about foreign demand.

In February, inflation was below the lower limit of the inflation target band. In March, the Monetary Policy Council kept interest rates on hold, with the key rate at 1.5%.

GdP Growth According to the latest data released at the end of February 2019 by Statistics Poland (GUS), in the fourth quarter of 2018 the non-seasonally adjusted GDP in average annual prices of the previous year grew by 4.9% in real terms year on year. In the fourth quarter, Poland’s GDP was worth PLN597.5 billion, which was the highest ever figure. The seasonally adjusted GDP in constant prices, with 2010 as the reference year, grew by 0.5% in real terms quarter on quarter and 4.6% year on year.

The main driving force behind the economy in the fourth quarter of 2018 was do3/2019 12/2018 : Polish polishMarket market ::89I

Economy Monitor Economic

Source: Statistics Poland (GUS)

mestic demand. It increased by 4.8% year on year, but was lower than in the previous quarter. The reason was that gross capital formation was much weaker: 6.2% against 14.6% in the third quarter.

In the last quarter of 2018, the pace of growth in total consumption was the same as in the previous quarter: 4.2%. Household consumption grew 4.3% compared to 4.5% in the third quarter. Gross fixed capital formation grew 6.7%. As a result, domestic demand contributed +4.7 pct. points to the economic growth rate against +6.0 pct. points in the third quarter. Total consumption contributed respectively +3.0 pct. points against +3.3 pct. points in the third

Source: Statistics Poland (GUS)

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quarter while the contribution of investment demand was at +1.7 pct. points, the same as in the third quarter. The increase of inventories was neutral. Consequently, the contribution of gross capital formation to GDP growth was positive at +1.7 pct. points against +2.7 pct. points in the third quarter. In the fourth quarter, the contribution of net exports to economic growth was positive at +0.2 pct. points against a negative contribution of -0.9 pct. points in the third quarter.

According to GUS data released on February 28, in the fourth quarter of 2018 the seasonally adjusted GDP grew by 0.5% in real terms quarter on quarter. In the fourth

quarter, the gross value added (GVA) rose 1.0% in real terms, in the industrial sector 0.8%, in construction 2.4%, in trade and repairs 0.9%, and in the financial and insurance sector 2.7%. In the transport sector GVA decreased 0.2%. GVA rose 0.1% in public administration, defence, obligatory social insurance, education, healthcare and social assistance sectors combined.

In the fourth quarter of 2018, domestic demand increased 0.6% in real terms. Total consumption rose 1.2% in real terms, with a 1.3% increase in household consumption.

Capital formation decreased in real terms by 1.7% and gross fixed capital formation expanded by 0.6%.

national budGet Under the budget law for 2019, the budget deficit is set at PLN28.5 billion.

Budget execution in January 2019 (estimates) - Revenue: PLN38.7 billion, or 10% of the figure planned under the budget law; - Expenditure: PLN32.1 billion, or 7.7% of the planned figure.

Consequently, a PLN6.6 billion surplus of revenue over expenditure was recorded.

In January 2019, budget revenue was PLN3.5 billion higher than a year earlier.

Tax revenue was higher by PLN2.6 billion, or 7.9%.

Compared to January 2018: - VAT revenue rose 12.6% year on year (or by around PLN2.3 billion); - Revenue from excise tax and gambling tax dropped 10.3% year on year (or by around PLN0.6 billion); - PIT revenue rose 15.4% year on year (or by around PLN0.9 billion); - CIT revenue rose 2.8% year on year (or by around PLN0.1 billion); - Revenue from tax on some financial institutions rose 4.7% year on year.

Non-tax revenue increased 55.7%, or PLN0.9 billion year on year, to PLN2.5 billion.

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industrial

and construction outPut

The start of the year was good when it comes to industrial output, but the performance of the construction and assembly sector was weaker.

Industrial output According to flash estimates, in January 2019 industrial output in constant prices generated by businesses providing employment to 10 or more persons was 6.1% higher than a year earlier and 7.4% higher than a month earlier. After seasonal adjustments, industrial output was 6.1% higher than a year earlier and 1.7% higher than in the previous month.

Compared to January 2018, output rose in 26, out of 34, industrial sectors, including the production of electrical equipment (up 17.3%); beverages (17.2%); electricity, gas, steam and hot water supply (15.1%); “other” transport equipment (13.3%); computers, electronic and optical products (10.9%); chemicals and chemical products (10.0%); metal products (8.0%); and textile products (7.4%). Industrial output dropped year on year in eight sectors, the most in the production of coke and petroleum products (down 9.5%); metals (8.6%); and clothes (7.9%).

In January 2019, producer prices were 0.2% higher than in December and 2.2% higher than in January 2018. The biggest year-on-year increase in prices was noted in the production of leather and leather products (up 7.9%).

Construction and assembly output In January 2019, construction and assembly output in constant prices generated in Poland by construction firms employing more than nine people, was 3.2% higher than a year earlier, when it had grown by 34.7%, and 61.2% lower than in December 2018, when it had dropped by 57.8%.

Compared to January 2018, construction

Source: Statistics Poland (GUS)

and assembly output rose in the segment involved mainly in infrastructure building (up 15.3%) and the construction of buildings (2.3%). Businesses dealing with specialised construction work recorded a drop in output – by 6.2%.

Compared to December 2018, output dropped in all segments of the market, the most in that involved mainly in infrastructure building (down 75.2%). Businesses

whose main activity is specialised construction work recorded a 51.2% drop in output and those dealing mainly with the construction of buildings recorded a drop of 46.7%.

In January 2019, new work output was worth 1.9% less than a year earlier while repair work output was worth 12.6% more.

In January 2019, construction output in constant prices with 2015 as the reference year (2015=100) grew 68.7%. After season-

Source: Statistics Poland (GUS)

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Source: Statistics Poland (GUS)

al adjustments, construction and assembly output was 3.2% higher year on year and 0.3% lower month on month.

Construction and assembly output prices were 0.2% higher compared to December 2018 and 3.7% higher than a year earlier.

Prices In February 2019, the consumer price index (CPI) stayed below the lower limit of the inflation target band.

In February 2019, prices of consumer goods and services grew 0.4% month on month, with a rise of 0.6% in prices of services and 0.2% in prices of goods.

Compared to January 2019, the biggest positive contribution to CPI inflation came from prices of food, which increased 0.9%, and home-related prices (0.4%). Prices of clothes and footwear dropped 1.7%.

Compared to February 2018, consumer prices rose 1.2%, with prices of services going up 2.3% and goods 0.9%. This shows that inflation stays at a relatively low level, but has started to pick up after a sevenmonth break.

In the 12 months to the end of February, prices of vegetables increased by 2.2% on average, transport-related prices by 2.5% 92 IV ::polish Polish market Market: 3/2019

and home-related prices by 0.6%. Prices of clothes and footwear decreased by 3.2% and communications prices by 2.4%.

The change to the January inflation estimate results from the annual change to GUS’s methodology for measuring inflation. The February inflation was estimated on the basis of a new consumer basket, with a slightly higher contribution of food, and a much higher contribution of the transport, home furnishings, and restaurants and hotels categories.

The data revision slightly changed expectations for inflation in 2019. Assuming that secondary legislation on electricity prices comes into force in April and that the Energy Regulatory Office (URE) and businesses make adjustments to it by the beginning of May, inflation may increase to 2.0% in the middle of the year, then ease, and again accelerate to 2.2% in the fourth quarter.

labour market In February 2019, the number of unemployed decreased a bit. January and February are the most difficult months on the labour market.

According to data from the Ministry of Family, Labour and Social Policy, the number of unemployed registered with employment agencies at the end of February 2019 stood at 1,018,000 and was lower by 108,800, or 9.7%, than a year earlier and by 5,100, or 0.5%, than a month earlier.

The biggest drops in the number of unemployed in February were recorded in the provinces of Świętokrzyskie (up 1.9%); Opolskie (1.8%); and Podlaskie (1.8%).

In February the unemployment rate amounted to 6.1% and was the same as in the previous month and 0.7 pct. points lower than a year earlier. It was the lowest unemployment figure for February since 1991.

In February, employers submitted to employment agencies 120,000 job offers and back-to-work placements. The figure was by 11,500 lower than in the previous month.

Drops were recorded in 10 provinces, ranging from 6.6% in Kujawsko-Pomorskie and 26.3% in Śląskie.

ForeiGn trade In January, Poland had a negative balance of goods trade. Germany’s share in Polish exports decreased compared to a year earlier.

In January 2019, Poland’s overall exports in current prices were worth PLN77.6 billion while imports were worth PLN77.8 billion.

Compared to January 2018, the value of exports was higher by 4.6% and of imports by 2.0%. As a result, the trade balance was negative at PLN0.2 billion.

In US dollar terms, exports were worth USD20.6 billion, down 1.4% year on year.

Imports were worth USD20.7 billion, down 3.9%. The trade balance was negative at USD0.1 billion. In euro terms, exports were worth EUR18.1 billion, up 2.5%, and imports EUR18.2 billion, down 0.1%. The deficit was at EUR0.1 billion.

Developed countries had the largest share in Poland’s overall exports (88.2%), with the EU’s share at 81.6%. The countries had a 64.9% share in Poland’s overall imports, with the EU’s share at 57.7%. Central and

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Eastern European countries had the lowest share in Poland’s exports and imports: respectively 5.2% and 8.7%. The figures remained largely unchanged compared to a year earlier.

In January 2019, Poland had a deficit of PLN15.3 billion (USD4.1 billion, or EUR3.6 billion) in its trade with developing countries and a deficit of PLN2.8 billion (USD0.7 billion, or EUR0.7 billion) in its trade with Central and Eastern European countries. Poland had a surplus of PLN17.9 billion (USD4.8 billion, or EUR4.2 billion) in its trade with developed countries.

The surplus with the EU countries was worth PLN18.4 billion (USD4.9 billion, or EUR4.3 billion).

Poland’s 10 biggest trade partners had a 67.8% share in its overall exports and a 64.2% share in its overall imports, with no significant changes recorded compared to a year earlier. Germany’s share in Polish exports decreased year on year by 0.5 pct. points to 28.0%. Germany’s share in Polish imports dropped by 0.4 pct. points to 22.4%. Poland had a surplus of PLN4.3 billion (USD1.2 billion, or EUR1.0 billion) in its trade with Germany. The surplus was by PLN0.5 billion (USD0.1 billion, or EUR0.1 billion) higher than in January 2018.

Source: Statistics Poland (GUS)

the previous month. Manufacturers considered their stocks of finished products to be satisfactory. They planned to raise employment and expected that prices of manufac-

tured products would continue to grow but at a slower pace than they had predicted in January.

The general business climate indicator in

economic climate The business climate indicators in the Polish manufacturing and construction sector improved in February 2019.

The general business climate indicator in the manufacturing sector was positive at +7.3 in February versus +6.4 a month earlier. 17.4% of the surveyed businesses reported an improvement and 10.1% a deterioration in business conditions. The remainder said their situation had not changed. Assessments of order books were negative while assessments concerning production were positive. Manufacturers’ were pessimistic when it comes to assessments of their financial situation, but their projections in this regard were optimistic.

Delays in payment for their products grew at a slower pace than had been signalled in

Source: Statistics Poland (GUS)

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Source: Statistics Poland (GUS)

the construction sector stood in February at +4.9 versus +2.7 in the previous month.

15.9% of the surveyed businesses indicated an improvement and 11.1% a deterioration in business conditions. The remainder said their situation had not changed. Assessments concerning current order books, construction and assembly output, and the builders’ financial situation were more favourable than in January. Projections for order books and output were optimistic.

Delays in payment for construction and assembly services continued to grow. Construction managers expected a rise in employment in the next three months and a rise in prices of construction and assembly services. 36% of the surveyed builders planned to conduct construction and assembly work abroad.

In the wholesale sector, the reading of the general business climate indicator was at +5.9 in February against +5.0 in the previous month. 16.2% of those surveyed reported an improvement and 10.3% a deterioration in business conditions. The remaining wholesalers said their situation had not changed. Assessments of sales were less optimistic than in January, but sales projections were favourable. Wholesalers still considered their stocks of finished products as excessive and were pessimistic about their current financial situation. They planned to raise orders for products and to slightly in94 VI ::polish Polish market Market: 3/2019

crease employment. They expected product prices to grow at the pace predicted a month earlier.

In the retail sector, the reading of the general business climate indicator was at +3.0 in February against +1.8 in the previous month. 15.4% of the surveyed retailers signalled an improvement and 12.4% a deterioration in business conditions. The remaining retailers said their situation had not changed. In February, assessments of sales and financial situation in the retail sector were more pessimistic than in January.

Sales projections were slightly optimistic.

Projections for retailers’ financial situation were less favourable than a month earlier.

Stocks of merchandise were still considered to be excessive. Retailers planned to reduce their orders for merchandise, but to a smaller extent than they had signalled in January. They did not plan to change the level of employment. Retailers expected product prices to grow, but at a slower pace than signalled in January.

The general business climate indicator in the transport and warehousing sector stood at +3.7 in February against +5.1 in January. 14.8% of those surveyed signalled an improvement and 11.2% a deterioration in business conditions. The remaining businesses said their situation had not changed.

Demand and sales projections were positive and more optimistic than in January.

Projections for financial situation were less pessimistic than in January. There were growing delays in payment for services.

The surveyed businesses planned to raise employment and expected a rise in prices in the next three months.

In the accommodation and food services sector, the general business climate indicator was at +5.3 in February versus +5.4 a month earlier. 17.0% of the surveyed businesses reported an improvement and 11.7% a deterioration in business conditions. The remaining businesses said their situation had not changed. Assessments of current demand and sales were more unfavourable than in January, but the assessment of current financial situation was less pessimistic.

Although sales projections were slightly negative and deteriorated compared to January, demand projections were more positive. Projections for financial situation deteriorated. Those surveyed signalled growing delays in payment for their services. They planned to raise employment and prices in the next three months.

In the information and communication sector, the general business climate indicator was at +18.0 in February versus +20.0 in January. 23.9% of the surveyed businesses reported an improvement and 6.0% a deterioration in business conditions.

The remainder said their situation had not changed. Assessments of current sales continued to be positive, but assessments of current demand and financial situation were less positive than in January. Demand and sales projections were more optimistic.

Expectations for financial situation were similar to the optimistic expectations reported in January. Delays in payment for provided services were growing. The surveyed managers planned to employ more staff and expected a rise in prices in the next three months.

In the financial and insurance sector, the general business climate indicator stood at +26.8 in February versus +28.4 a month earlier. 30.4% of the surveyed businesses reported an improvement and 3.6% a deterioration in business conditions. The remainder reported no change. Assessments of current demand and sales were less favourable in February than in January.

The assessment and projections for finan-

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index, assessments of households’ future financial situation and Poland’s future economic situation improved by 4.1 and 1.2 pct. points respectively. The assessment of the future potential to save deteriorated.

reserve assets The value of Poland’s reserve assets dropped this year, but the value of gold reserves increased.

Source: National Bank of Poland (NBP)

cial situation continued to be positive. The surveyed businesses signalled a slight decrease in delays in payment for their services. They planned to raise employment and expected a slight drop in prices in the next three month.

consumer sentiment According to Statistics Poland (GUS), consumer sentiment slightly improved in Poland in the second month of the year.

Current Confidence Index In February 2019, the composite Current Confidence Index, which describes current trends in individual consumption, was higher by 0.1 pct. points compared to the previous month and stood at 5.5 points. But compared to a year earlier it was lower by 0.7 pct. points.

The readings of individual components of the index with respect to assessments of households’ future financial situation and Poland’s future economic situation increased by 4.1 pct. points and 1.2 pct. points, respectively. The readings of two components decreased: assessment of households’ current potential to buy (down 3.0 pct. points) and Poland’s present eco-

nomic situation (down 1.6 pct. points).

Leading Confidence Index In February, the Leading Confidence Index, which describes trends in individual consumption expected in the next months, went up by 1.0 pct. point compared to the previous month and stood at 3.2 points.

Compared to a year earlier, the reading of the index was 1.0 pct. point lower.

As regards individual components of the

According to the National Bank of Poland (NBP), at the end of February 2019 Poland’s reserve assets were worth PLN425.8 billion (an equivalent of USD112.5 billion, or EUR98.7 billion). Compared to the end of December 2018, the value of the reserve assets was 3.2% lower in zloty terms, 3.8% lower in dollar terms and 3.4% lower in euro terms.

Poland’s reserves are made up of foreign currency deposits, SDRs, claims and the reserve position in the IMF. At the end of February 2019, they accounted for 95.1% of the total reserves. Monetary gold, worth around PLN20.7 billion, accounted for 4.9% of the reserves.

Source: National Bank of Poland (NBP)

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Economy Monitor Economic

money suPPly

Change in WSE indices in January-February 2019, %

The M3 money supply contracted in January 2019. Household deposits increased while deposits of non-financial businesses dropped.

According to preliminary data published by the National Bank of Poland (NBP), the M3 money supply shrank in January 2019 compared to December by PLN20.7 billion, or 1.4%, to PLN1,425.4 billion.

In January 2019, cash money in circulation outside the banking system was worth PLN201.4 billion. The figure was lower by 0.9% than in the previous month.

Deposits and other obligations stood at the end of January at PLN1,209.4 billion and their value was 1.3% lower than a month earlier. Household deposits were worth PLN810.3 billion, 0.5% more than in December. Deposits of non-financial businesses were worth PLN272.5 billion, 5.1% less than a month earlier. Deposits of non-commercial institutions operating for households were worth PLN26.5 billion, 1.7% more than a month earlier. Deposits of local government institutions were worth PLN32.1 billion, 0.6% less than a month earlier. Deposits of social insurance funds fell by 25.3% month on month to PLN12.0 billion. The remaining M3 components were worth PLN14.6 billion, down 18.1% compared to a month earlier.

Net domestic assets were worth PLN1,133.6 billion and were by 1.9% lower than a month earlier. Net foreign assets stood at PLN291.8 billion, an equivalent of EUR68.2 billion. They increased by 1.0% month on month.

At the end of January, the value of household debt was higher by 0.1% than a month earlier and stood at PLN724.0 billion. Debt of non-financial businesses rose 0.5% month on month to PLN386.1 billion. Debt of local government institutions decreased by 0.2% month on month to PLN56.0 billion. Net debt of central government institutions was worth PLN261.2 96 VIII  polish :: Polish market  Market: 3/2019

Source: Warsaw Stock Exchange

billion and was lower by 5.3% than a month earlier. The balance of other net items was negative at PLN393.5 billion against minus PLN384.4 billion at the end of last year.

caPital market February 2019 saw a drop in stock prices on the Warsaw Stock Exchange.

At the end of February, 413 Polish companies with a combined capitalization of nearly PLN602.9 billion and 51 foreign companies with a capitalization of PLN597.1 billion were listed on the main market of the Warsaw Stock Exchange (WSE). The value of equities traded on the market in February was 5.7% lower than a year earlier and amounted to PLN15.3 billion.

After increases in stock prices in the first month of the year, stock market indices dropped in February, with the WIG20 blue-chip index losing 2.0% and the WIG

broad-market index 0.8%. However, since the beginning of the year the two indices gained respectively 2.4% and 3.8%. Thirteen of the 14 sectoral indices rose in value in the two months to the end of February.

WIG-Chemical gained the most (35.7%).

WIG-Oil&Gas lost 1.9%.