Techeye looks at the best (and notso-best) gadgets from the 2011 Consumer Electronics Show
Warsaw is tops for business, but what city is best for quality of life? You may be surprised 7
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VOLUME 17, NUMBER 2 • JANUARY 17-23, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
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Heavy burden?
REAL ESTATE
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Lokale Immobilia
• Water park market • Vector moves forward • Orbis hotel project 15-18
Strategy from the left WBJ takes a look at the left with Democratic Left Alliance MP Tadeusz Iwiƒski 8-9
Catering companies
VAT rises and inflation could result in hefty price hikes. Will there be repercussions? 12-13
20-21
News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .5-6 Business Environment . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion . . . . . . . . . . . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Entertainment . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23
¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK
In this issue
A mockery of Poland?
Calling all suitors
Russia’s report on the Smolensk plane crash has met with anger and disbelief 2, 3, 11
Mobile telecom Polkomtel is now officially courting buyers
A GUIDE TO POLISH EXPORT will hit shelves in March 2011! For advertising and promotion opportunities contact: Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226
5
NEWS
www.wbj.pl
More NATO-EU cooperation? Poland wants to increase military coordination between the EU and NATO in the second half of 2011, when it will hold the bloc’s rotating presidency. The initiative aims to save money, Polish Defense Minister Bogdan Klich said in an interview with Reuters. Poland will actively support the “pooling and sharing” policy, in which EU members focus on specific military strengths rather than develop their capabilities across the board.
Portuguese, Spanish and Italian bonds sold Investors breathed a sigh of relief as bonds issued by Portugal, Spain and Italy found investors last week. This provided the highly indebted countries the funds necessary to maintain solvency without seeking help from the EU. Markets all across Europe, including Poland, were waiting for the outcome of these auctions, as they were expected to indicate the economic mood for the year. Portugal came through first, having sold 10-year bonds worth €599 million and threeyear bonds for €650 million. On Thursday, the Spanish sold their bonds for €3 billion and the Italians followed suit with 15-year bonds at a value of €6 billion.
60%
was the annual rise of job off ers for C-level employees on popular site www.pracuj.pl in 2010
79% is the percentage of Poles who think their nation should provide assistance to poorer countries, according to an OBOP poll
z∏.35 billion is the estimated value of annual production in the Polish meat sector
8.5 meters/second was the descent rate of the Tu-154 which crashed last April, according to the Russian report on the matter. That’s twice the maximum speed for a safe landing
The Interstate A viation Committee (MAK), an executive body which oversees the use and management of civil aviation in the Commonwealth of Independent States, has earned much ire in P oland. MAK is charged with investigating plane crashes which occur within the territories of CIS member countries and, as such, has handled the inquest into the April 10 Smolensk air crash, in which P olish P resident L ech Kaczyƒski and 95 other were killed. The committee’s report on the causes of the crash, published last week (see story, p.3), has led to accusations of a lack of objectivity. Some politicians and media in P oland have questioned MAK’s independence, claiming that the report’s findings are influenced
by politics. It is not the first time that the Moscow-based body has come under criticism for its operations and the credibility of its crash investigations. According to some critics, MAK tends, sometimes erroneously, to ascribe the causes of accidents to pilot error rather than the technical conditions of the airplanes or the airports where they were attempting to land. Others have pointed out that an obvious conflict of interests exists. While MAK is charged with examining the causes of air traffic-related accidents, it also certifies and issues permits for the use of all airports, airplanes and other aviation equipment. In effect, its air crash investigations amount to critiques of
its own work. MAK was founded in December 1991. Since its inception, the organization has been headed by Tatiana Anodina, a Russian design engineer and civil aviation general. Ms Anodina is regarded as one of the most influential women in Russia. She used to work for the Soviet A viation Ministry and was married to Soviet Communications Minister Pyotr Pleshakov. In the late 1980s and early 1990s, Ms Anodina reputedly had a relationship with Yevgeny Primakov, a deputy chairman of the KGB in the 1991-1996 period and Russian prime minister from 1998-1999. She is a minority shareholder in T ransaero, one of Russia’s largest airlines, which was founded by her son in 1990. Adam Zdrodowski
Quote of the Week
“If I had been prime minister, the [Smolensk] catastrophe would not have happened” Jaros∏aw Kaczyƒski, leader of the main opposition party and twin of the late president, talks of what might have been
Figures in focus In need of work Seasonally adjusted unemployment rates (in %) in selected EU countries, November 2010
25 20 15 EU 27
10 5
On WBJ.pl Doing business in style How important are style and elegance for men when it comes to doing good busines s? V ery, ac cording t o s tyle c oach Micha∏ Leopolt-Kuropatwiƒski, who has provided fashion and etiquette advice t o thousands of busines smen and author s the bl og www.businessinstyle.pl. Log on t o WB J.pl t o get his tips on increasing business efficiency through fashion and style.
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Spain
Slovakia
Ireland
Hungary
France
Poland
DATELINE
January/February
Company index Agencja Cateringowa Party ......20 GOÂCINIEC OYCOWIZNA ..........21 PricewaterhouseCoopers ......7, 13 Agencja HeWo Henryk åwik∏a ..20 Goodman ....................................18 PSE Operator ..............................9 AIG/Lincoln Polska ....................17 Henpol ........................................15 Restauracja Dom Polski............20 APA Markowski Architekci ........15 Hochtief Development Poland ..16 Restauracje ..........................99 21 Aquapark Fala............................17 Hotel Mazurkas & MCC Arch-Deco ..................................15 Mazurkas Conference Centre ..20
25-26 ONLINE TRAVEL INDUSTRY CONFERENCE Event:
Event:
Event:
International Green Week Berlin. The world’s biggest fair for food, agriculture and horticulture. Poland is the official partner country in 2011
w Andrychowie ..........................17 Biuro Organizacji Imprez Belvedere ..................................21 Specjalnych ................................21
Blackstone ..................................5 Jerónimo Martins ........................5
KPMG’s 1st Taxation & Accounting Congress
21-30 INTERNATIONAL FOOD AND AGRICULTURE FAIR
IMPRESSA EVENT PARTNER
BlackRock ....................................5 IVG Development........................15
TAX CONGRESS – a unique event wholly devoted to changes in taxation and accounting in force since January 1, 2011. The congress has been designed for CFOs, chief accountants, heads of financial reporting and controlling, and participants from other managerial positions. Participation in the congress is free of charge. For more information, visit kpmg.pl
Basen Kàpielowy
BioWorks Pl ................................6 Intel ............................................23
20
e-Travel Forum 2011 – an annual, international conference dedicated to the issues of online sales of travel products. www.e-travelforum.pl/en
JAN 31 – FEB 1 INVESTMENT CONFERENCE Event:
CEE Investment and PPP. Developing Sustainable Relationships. Location: InterContinental Warszawa. www.easteurolink.co.uk/CEE-Investmentand-PPP
FEBRUARY 3 SHOPPING CENTER FORUM Event:
Shopping Center Forum & Awards 2011, Hilton Warsaw Hotel & Convention Centre. Organizer: BROG Media Biznesu. www.shoppingcenter.pl
Sweden Germany Netherlands Source: Eurostat
Art’Impression Catering ............20 Impel Catering ..........................20
Exatel sale canceled Poland’s largest utility, PGE, canceled the sale of its telecom unit, Exatel, last week due to lack of interest, Reuters reported. PGE said it would announce new plans in Q2. Exatel is worth about z∏.400 million, according to PGE. ●
Numbers in the News
The Interstate Aviation Committee
Fewer trains, but on time As of March 1, there will be fewer train connections, but they will all be on time, deputy Minister of Infrastructure Andrzej Massel averred last week. March 1 is the date when the new, “profoundly corrected” train schedule comes into effect.
JANUARY 17-23, 2011
IN THE SPOTLIGHT
EAST NEWS
2
Rittal ..........................................18 RSVP Kalinowski, WysockiKalinowski ..................................20 RTV Euro AGD ............................17 Samsung ....................................23 Santa Fe Partners......................21 Scania Polska ..............................6 Sedlak&Sedlak ..........................12
Bon Appetit Catering ................20 Jones Lang LaSalle ..................16 Shell ............................................6 British Gas ..................................6 Kancelaria Brochocki ................16 Sheraton Catering Services ......21 British Telecom............................5 Karimpol Group ........................16 Siekierka Catering ....................20 Budlex Pestalozziego ................16 KGHM ..........................................5 Skalski........................................18 CASA ITALIA ..............................21 KPMG ..........................................2 Sodexo Polska............................20 CBRE ..........................................18 Kr´gliccy Restauracje i Catering..21 Solid Security ............................16 CCC ............................................17 L. Zapart Catering ....................20 So∏tysiƒski, Kawecki & Szl´zak ..16 CEE Investment ..........................2 La Boheme ................................21 Stora Enso....................................5 Cereplast ......................................6 Le Meridien Bristol ....................21 Talisman Energy ..........................6 Cinema City ................................17 Lenmar Capital ..........................18 TeliaSonera ..................................5 Citi Handlowy ..............................7 LG ..............................................23 Termy Maltaƒskie ......................17 Colliers International ................16 Mercer ..........................................7 Tesco ..........................................15 Dalekovod ....................................7 Molala ........................................21 The Orbis ....................................18 Deloitte ........................................9 Nordea Bank ..............................12 Unibail-Rodamco ......................18 DM BZ WBK SA ..........................19 O5................................................21 UniCredit Group ..........................5 DTZ ............................................16 Orlen ............................................5 Villa Catering Prominentis ........21 Echo Investment ........................15 Park Wodny w Krakowie ............17 Vodafone ......................................5 Electricite de France ..................4 Party Serwis Catering Melon ....20 Enea..............................................4 PGE ......................................2, 4, 5 WBWK Architekci ......................17 Energa ..........................................4 PGNiG ..........................................6 Wierzbowski Eversheds ..........4, 9 ENI................................................6 PKN ..............................................5 Wroc∏awski Park Wodny ............17 Eurest Poland ............................20 PKO Bank Polski........................15 W´glokoks ....................................5 Eurodruk-Kraków ......................18 PKP ......................................15, 16 X-Trade Brokers Gemini Holdings ........................17 Polkomtel ....................................5 Dom Maklerski SA ....................19 General Motors ..........................23 POLOMarket ..............................17 Yareal Polska..............................15
NEWS
JANUARY 17-23, 2011
www.wbj.pl
Smolensk crash
Beatification date for JP II
A one-sided report?
What led to the deaths of President L ech Kaczyƒski, First Lady Maria Kaczyƒska and scores of others in the April 10 plane crash in Smolensk, Russia? According to the official report issued by the Interstate Aviation Committee (MAK), it was mainly pilot error. The MAK report lists the pilots’ decision not to land at an alternative airport despite receiving information about the inclement conditions in Smolensk as one reason for the crash. That they also descended without being able to see the ground clearly and failed to react to repeated alarms from their on-board warning system also contributed, the report states. Tatiana Anodina, the head of the committee, told the press that the presence of high-ranking personnel in the cockpit – the Foreign Ministry’s director of protocol, Mariusz Kazana, and chief of air staff, General Andrzej B∏asik – had influenced the pilots’ fatal decision to try and land the plane. She said that, in the opinion of psychologists consulted
The Vatican last week announced the beatification of the late Pope John Paul II would take place in Rome on May 1. Pope Benedict XVI set the date and place of the event having previously approved a decree of the Congregation for the Causes of Saints which had recognized a miracle worked the intercession of his Polish predecessor. The beatification process of John Paul II will have been one of the shortest in modern history
on the matter, the presence of the “main passenger [P resident L ech Kaczyƒski]” had also likely influenced the fatal decision. “In the event of landing in an alternative airport, the pilot could expect a negative reaction from the main passenger,” Ms Anodina suggested. She also stated that General B∏asik, who was in the cockpit at the time of the crash according to the Russians, had been under the influence of alcohol.
On Polish shoulders The P olish response to the report was less than enthusiastic. “We have a report which blames the P olish pilots and Poland completely one-sidedly and without any evidence. ... Some psychologists are saying there was pressure on the pilots when there is no evidence of that in the black box recordings,” said Jaros∏aw Kaczyƒski, leader of the opposition L aw and Justice party and twin brother of the late president. “The report makes a mockery of Poland,” he added. Prime Minister Donald Tusk offered a more measured response but expressed dissatisfaction with the findings. He
EdF meets with Enea execs
COURTESY OF WIKIMEDIA COMMONS
The official report on the Smolensk crash has met with dissatisfaction and anger in Poland
PM Tusk expressed disappointment with the MAK report
called the report “incomplete,” saying he wanted talks with the Russians on creating a “joint version” of the document. “Good relations and reconciliation can only be built on the truth … The only alternative to the truth is lies and you can’t build mutual understanding and cooperation on lies,” said the PM, adding that the Smolensk tragedy didn’t “have
to be a blow” to P olish-Russian relations. But if no agreement could be reached, he said, P oland could turn to international aviation organizations. Russian F oreign Minister Sergey L avrov, responding to harsh comments in the P olish media, stated, “I understand Poles’ feelings. W e will not allow a worsening of our relations, which have been normal-
izing.” Mr L avrov added, however, that MAK was not a government institution but an independent organization created by R ussia and the Commonwealth of Independent States. “If our colleagues in Poland are calling it a Russian investigation, well that is not the case,” he said. Remi Adekoya
Government deficit
Rostowski sets Poland’s deficit goals
COURTESY OF WIKIMEDIA COMMONS
Pension reform is key to narrowing the deficit to EC requirements Warsaw aims to slash the general government deficit to below three percent of gross domestic product by 2012, putting it in line with European Commission requirements, Finance Minister Jacek Rostowski told a news conference last week. The deficit for 2010 will nevertheless stand at nearly double the official EU limit, preliminary data suggest. A report in daily Rzeczpospolita, which quoted an unnamed official from the prime minister’s office, even suggested that the deficit could be as high as 8.5 percent, although Mr Rostowski was quick to deny the report. “We are still forecasting the 2010 deficit at 7.9 percent of GDP, and this [preliminary] data would seem to confirm that forecast,” Mr Rostowski said. According to the daily’s source, the government’s 7.9 percent forecast – first revealed in October – underestimates the level of debt incurred by local authorities, who have borrowed heavily in order to invest in infrastructure.
Mr Rostowski is confident Poland can slash its deficit by 2013 Despite Poland’s relatively strong recent economic growth, its 2010 deficit is forecast by the EC to be the seventh-largest in the EU. P oland’s headline deficit stood at 3.7 percent in 2008 before rising to 7.3 percent the following year. “Further deterioration [in the 2010 figure] can be explained mainly by lower rev-
enues from corporate income tax, higher consumption and investment expenditure by local government entities and higher interest expenditure,” the EC wrote in its European Economic Forecast report.
Plan of action Mr Rostowski said at a press conference last week that
3
faster economic growth and a slower increase in government spending would help reverse the trend seen over the last two years. Combined with reduced transfers to private pension funds, these factors should help cut the deficit by “almost one-third” in 2011 and by “almost half ” in 2012 compared to the 2010 level.
“I’m talking about action we’re working on already and there will be further action we will present at an appropriate time in order to have a deficit of three percent of GDP in 2012,” he said. Prime Minister Donald Tusk said late last year that transfers to private pension funds will be slashed from 7.3 percent of gross wages to 2.3 percent. The difference will be channeled into the state-run pension fund (ZUS), thereby reducing the amount of budget money needed to cover that institution’s shortfalls. The government wants to keep public debt below 55 percent of GDP in order to avoid the austerity measures that come into play once that threshold has been breached. The central government deficit, which doesn’t take into account expenditure by local governments and state agencies, is expected to come in at just under z∏.45 billion for the full year 2010. This is less than the z∏.48.3 billion the Finance Ministry had predicted in September and much lower than the z∏.52.2 billion written into the 2010 budget. Gareth Price
Executives at stateowned Polish energy firm Enea met with representatives from French power concern Electricite de France last Tuesday, writes daily Parkiet. “The meeting had to do with EdF probing our financial condition in anticipation of a potential investment,” said Enea spokesperson Grzegorz Adamski.
Police bust garlic smugglers The Polish police helped European countries to make €180,000 in customs duties by helping to unmask a 48-ton shipment of Chinese garlic fraudulently labeled as onions. Garlic incurs a high duty if imported in quantities above a certain quota. Thus labeling it as onions saves importers a lot of money.
Cleaning lady writes bestseller The much-ballyhooed Teutonic reputation for organization and order has been dealt a blow in a new tell-all book written by a 32-year-old Polish cleaning woman. The book exposes her German employers as mean, filthy homeowners who don’t pay up and set devious traps to check that her work is done. The book has become a best-seller in Germany. The author is one of the estimated 500,000 Polish cleaning women who have emigrated to Germany since the end of communism. ●
4
NEWS
www.wbj.pl
JANUARY 17-23, 2011
Public debt
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A (mostly) symbolic issue?
The specter of public debt growing beyond 55 percent of GDP haunts the government, but would it really be so bad? Some think not The Finance Ministry has been at pains recently to reassure voters and investors that public debt has not and will not reach the dreaded 55 percent of GDP threshold. A ccording to the ministry’s latest figures, Poland’s public debt stood at around z∏.766 billion last year, equating to approximately 53.5 percent of GDP. The 55 percent threshold marks the point at which the government would be legally bound to implement what are widely termed as “austerity measures.” But, some experts argue, the legal provisions that would be triggered might not be so bad. “It is hard to talk about austerity measures when the government would only be forced by law not to increase the debt and to take some savings steps,
without actually having to cut salaries or retirement and pension benefits,” said Marek Czarny, a partner and finance specialist at law firm Wierzbowski Eversheds. Economist R yszard P etru recently argued in the pages of Dziennik Gazeta Prawna that a situation where the government would be legally bound to balance the budget would be both good for Poland and relatively risk-free for politicians. Finding the estimated z∏.3040 billion needed to avoid a further debt increase would likely involve far less drastic cuts than, for example, those imposed on Greece or self-imposed in the United Kingdom. Besides, goes the argument, the government is already implementing the majority of measures dictated by Polish financial law in case debt should reach 55 percent of GDP, such as freezing public sector wages and pensions. “This is a virtual problem,” commented Janusz Grobicki, an expert at the A dam Smith Center, a Warsaw-based think tank. In his opinion, being
forced by the law to make budget cuts would actually allow the government more room to maneuver in fiscal policy.
It’s all about image Why then, one might ask, has the government made such a fuss, allegedly manipulating the currency and pushing forward a controversial plan to reform the pension system? According to Maciej Golubiewski, an expert in politics at the Sobieski Institute, it is mostly a matter of image. “The government is trying to maintain the reputation of Poland as a green island that avoided the whole financial crisis in the eyes of the EC and the EU,” he said. Particularly keen on image, especially vis-à-vis Brussels, the government appears willing to go to great lengths to avoid reaching this symbolic threshold, thus preserving its hardwon reputation for fiscal probity. Finance Minister Jacek Rostowski recently stated that in 2011 the public debt to GDP
ratio would stop rising and probably begin falling. There’s also a general consensus among experts that the chances of debt reaching 55 percent of GDP this year are relatively low. However, important currency fluctuations still constitute a real risk, warned Aleksander ¸aszek of the Civil Development F orum F oundation (FOR), an NGO campaigning for awareness of rising debt and deficit levels. “Forced to find savings on the spot, I am afraid that the government would choose the easiest cuts, for example in roads and infrastructure, rather than look for savings where we have real problems, for example in social expenditure,” said Mr ¸aszek. Whether the passing of the 55 percent public debt to GDP threshold would really be a blow to the economy or just a PR failure, it’s clear that the government doesn’t want to find out. Expect it to remain vigilant against this particular b^ ete noire. Alice Trudelle
Energy privatization
Regulator blocks PGE-Energa tie-up UOKiK says the deal would hinder competition; PGE plans to appeal The head of P oland’s antimonopoly watchdog has defied the government by blocking state-owned utility PGE’s z∏.7.53 billion takeover of smaller rival Energa. PGE inked a preliminary deal in September 2010 to buy an 84 percent stake in Energa, which is also state-controlled. Revenues from the sale were to be used to help the government narrow the deficit. The deal had been stalled pending approval from the head of the Office of Competition and Consumer Protection
(UOKiK), Ma∏gorzata Krasnod´bska-Tomkiel. UOKiK’s boss has opposed the tie-up since it was first mooted, arguing that it could significantly restrict competition in Poland’s electricity sector. The resulting company would control about 40 percent of the market. And the government hasn’t been able to sway her in the meantime, though not for lack of trying. PM Donald Tusk has met with her on the issue and has spoken publicly in favor of it. “I am not sure if the [UOKiK] president knows all of my arguments in favor of the joint undertaking of PGE and Energa. They go far beyond the question of com-
petition,” Mr T usk said in December. The government argues that UOKiK should look at the tie-up’s impact not only on the Polish market but also on the Central European market, where PGE-Energa would still be a small player. Additionally it wants to use the deal to create a firm large enough to build P oland’s first nuclear plant. In a statement released last Friday, Ms Krasnod´bskaTomkiel issued her decision: “I have decided to prohibit the takeover of Energa by PGE.” She explained that if PGE were to take over Energa, “the new company would be able to act independently of competitors and contracting parties,
imposing sales conditions and determining prices of electric energy.” In response, PGE said that it will lodge an appeal with the Court of Competition and Consumer Protection. UOKiK’s decision has elicited a mixed response from industry experts. “F or PGE shareholders, this decision is quite positive,” said BRE Bank analyst Kamil Kliszcz, who explained that there would have been few positive cost synergies for PGE under the formula agreed for the tie-up. Other analysts have said, however, that the deal could help safeguard PGE against European competition in the long term. Gareth Price
Children’s charity looking to set record The Great Orchestra of Christmas Charity (WOÂP), perhaps the most celebrated charity drive in P oland, raised over z∏.37 million for children suffering from kidney and urinary tract diseases during its annual event held earlier this month. Its total takings could yet prove record-breaking as many donated items will be auctioned off in the near future. WOÂP’s annual “Fina∏” event involved around 800 concerts organized across the
country and over 100,000 volunteers walking the streets with collection boxes and red heart stickers. Pledges were received from far and wide, including from soldiers serving in Afghanistan and researchers in Antarctica. The event ended with firework displays in many cities. As of the next day, WOÂP had received pledges worth z∏.1 million more than it had at the same stage in 2010, Rzeczpospolita reported. L ast year
the charity drive went on to raise a record total of almost z∏.43 million. This year the charity hopes to break that record. It has already auctioned off golden hearts as well as items such as ex-MP Janusz Palikot’s parliamentary ID card and a shawl worn by the Dalai L ama. Other items still available on auction site Allegro.pl include a dinner with entertainer Patrycja Kazadi, a collection of Christmas ornaments signed
by the prime minister and the council of ministers, and a ceremonial dagger offered up by Defense Minister Klich. In P oland, only the Catholic charity Caritas collects more money each year than the Great Orchestra of Christmas Charity. Over the latter’s 19-year history it has purchased more than 20,000 pieces of medical equipment, worth around $10 million, for children’s wards and hospitals. Alexander Hayes
INDUSTRY NEWS
JANUARY 17-23, 2011
www.wbj.pl
Telecommunications
Containerboard production
Speculation begins as to who will pick up Polkomtel
Finnish paper maker to invest €285 million in Poland mill
mobile operator T eliaSonera and also Polish billionaire Zygmunt Solorz-˚ak. According to P rzemys∏aw Sawala-Uryasz, an analyst for UniCredit Group, Mr Solorz˚ak is the only serious potential P olish buyer and he has already begun to arrange the financing. Mr Solorz-˚ak reportedly has ambitions to build a 4G network in Poland. However, Mr SawalaUryasz said that it would be extremely difficult to upgrade Polkomtel’s infrastructure to 4G-capability in the near future, and that the tycoon
MATEUSZ GO¸ÑB/WBJ
Polkomtel owns the Plus mobile phone network
could sooner offer 4G services through infrastructure he already controls. Nevertheless, access to P olkomtel’s existing client base will give Mr Solorz˚ak the more immediate opportunity to bundle internet, television and other services. The business mogul told PAP in December, “R egardless of whether P olkomtel comes up for sale, cooperation between us would, in my opinion, be beneficial both for Polkomtel and for the telecommunication projects that I am involved in.” Alexander Hayes
According to preliminary sales figures, Poland’s largest supermarket chain, Biedronka, saw its sales reach €4.8 billion in 2010, up from €3.7 billion in 2009. Due to currency fluctuations, a significant difference is observable in year-on-year sales growth in euro (up 29.1 percent) and in z∏oty (up 19.5 percent). But regardless of currency issues, Biedronka was by far the best performer within the Portuguese Jerónimo Martins group in 2010. Consolidated sales for the whole group grew by 18.7 percent y/y (13.9 percent at a constant exchange rate) to €8.7 billion. In a statement, the company described Biedronka’s sales performance as “exceptional” and attributed the group’s good results in part to “Biedronka’s remarkable ability to execute its expansion
COURTESY OF BIEDRONKA
Biedronka posts huge sales increase in 2010 to €4.8 billion
Biedronka added 197 new stores last year program, having opened 197 new locations in 2010.” Last year the chain also closed 14 stores and ended 2010 with 1,649 locations throughout the country. Extreme weather conditions in May were reflected in Q2
sales, which experienced the lowest growth (15.3 percent y/y). The highest sales were recorded in Q4, with an annual growth of 21.4 percent year-on-year. Full year results for 2010 are expected in February. Alice Trudelle
Finnish paper, packaging and wood product producer Stora Enso will invest €285 million to build a new containerboard machine at its Ostro∏´ka Mill in northeastern P oland. The investment is scheduled for completion in the first quarter of 2013. The machine will increase the company’s capacity for manufacturing containerboard, which is a material used to produce corrugated packaging. The move, the company wrote in a statement, will allow Stora Enso to reinforce its “leading position” in the CEE corrugated packaging market. The firm also hopes to reduce costs by making use of recycled fiber to build lightweight containerboard using the new machine. “Recycled fiber is the dominant raw material for corrugated packaging and continues to win share from virgin fibers. The markets for transport packaging in CEE have grown
COURTESY OF STORA ENSO
Stora Enso wants to tighten its hold on the CEE corrugated packaging market’s top spot
Teasers have been sent out and the guessing game has begun Polkomtel, operator of the Plus mobile phone network, Poland’s biggest, has now officially started to court potential buyers. All of its shareholders, which include such diverse companies as oil refiner PKN Orlen, copper producer KGHM, British telecoms operator V odafone, utility PGE and coal producer W´glokoks, agreed in June 2010 to sell 100 percent of the firm’s stock. Now, preliminary sales documents – so-called “teasers” – have been sent to potential buyers. S∏awomir J´drzejczyk, Orlen’s chief financial officer, confirmed that the process had started but declined to reveal who had been contacted. P olkomtel is valued at around z∏.16 billion. Unofficial sources quoted by daily Puls Biznesu said that 50 companies have picked up the teasers, which simply contain preliminary information. Interested firms must now fill out confidential documents, which would allow them to pick up an official informational memo relating to the operator. Dziennik Gazeta Prawna has speculated that potential buyers might include the investment funds BlackR ock and Blackstone, Scandinavian
5
The CEE transport packaging market is growing
and will continue to grow by over five percent per year,” Mats Nordlander, executive vice president of the firm’s packaging business area, said. Mr Nordlander added that the investment would increase Stora Enso’s self-sufficiency in containerboard production from 35 percent to 60 percent. Asked about the investment’s likely impact on Poland’s economy, Jerzy Janowicz, president of the
management board of Stora Enso Poland, said that, “during the building of the new PM5 [machine], there will be increased tax revenues for the government, because of the great amount of jobs, service provision, and equipment assembly.” After the investment has been completed, however, the level of recruitment will be the same as it is today, he Gareth Price added.
6
INDUSTRY NEWS
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Shale gas
Heavy vehicles
The race to find shale gas beneath the surface of Poland has re-started in earnest this year, with a number of bigname foreign players looking to join in the hunt. Gas monopolist PGNiG is reportedly in talks with several subsidiaries and affiliates of energy heavyweights including Shell, British Gas and Italy’s
ENI. PGNiG has been granted 13 concessions to search for the lucrative gas, which experts say is located in large quantities in rocks deep beneath the surface of Poland. As none of the foreign companies with which PGNiG is speaking have licenses to search for shale in Poland, PGNiG wants to exchange shares in some of its own licenses for concessions abroad. These concessions may concern sites located on the Norwegian shelf, as well as in Egypt, Algeria and T unisia, company vice president
Commercial vehicles back on road to profit
Rados∏aw Dudziƒski told daily Parkiet last week. In other shale gas news, Canada’s Talisman Energy will drill its first shale gas well in northern Poland in August. “We’re planning to finalize negotiations on the drilling contract in mid-February, and drill one well on each of our three licenses,” the company’s country manager Tomasz Maj told Bloomberg. “Drilling on the first well would start A ugust 1 and the last one would be completed around the end of January 2012,” he added. Shale gas is a natural gas contained in shale rock, which lies deep beneath the Earth’s surface. It is extracted by sending high-pressure liquids through the rock, releasing the gas, in a controversial process known as hydraulic fracturing, or “fracking.” Some geologists have said that P oland’s shale and tight gas reserves could amount to three trillion cubic meters. If such quantities were extracted on a large scale P oland could become a net exporter of gas, thereby ending its reliance on Russian supplies. Gareth Pr ice
legal news New classification of goods and services subject to the decreased VAT rate
for greenhouse gases, as well as changes concerning fiscal cash registers.
Entrepreneurs should remember that amendments to VAT regulations which became binding at the beginning of 2011 do not consist exclusively of temporary increases in the tax rate. Moreover, as of January 1, 2011, a new wording of addendum no. 3 to the act on goods and services is in force. The addendum defines goods and services subject to the decreased V AT rate of seven (now temporarily eight) percent. The amendment to the addendum means that it is necessary to adjust the statistical symbols that are used by entrepreneurs to the Polish Classification of Goods and Services (PKWiU) of 2008. Previously entrepreneurs used symbols from the PKWiU of 1997 for accountancy purposes, to which addendum no. 3 to the act was applicable.
Officials will pay for wrong decisions
Changes to VAT are not over Parliament is working on further changes to the act on VAT tax. Most of the these changes are supposed to come into force on February 1, 2011. According to the amendments, clothes for babies and shoes for children will be subject to the highest tax rate, 23 percent. At the moment it is still possible to use the decreased rate of eight percent. The draft also introduces corrections with regard to trading in scrap and emissions rights
The Sejm has passed an act according to which civil servants will be financially liable for gross breaches of the law during the execution of their public powers. Any civil servant may be prosecuted if his/her action is culpable and a gross breach of the law has been established through a proper judgment or administrative decision. Civil servants will also be financially liable if, pursuant to a judgment or a settlement, the liable entity (e.g. the office employing the civil servant) has already paid compensation for the damage caused during the execution of public powers involving a gross breach of the law. The level of compensation will amount to 12 times his/her monthly remuneration. The bill will now be introduced into the Senate.
ZUS premiums on employees’ trainings Employers must pay ZUS [Social Insurance Institution] premiums as well as advance payments for income tax on employee training during which the employees also enjoyed benefits other than those for developing their professional qualifications. This interpretation has been confirmed by ZUS’s central headquarters. ●
Compiled by Peter Nielsen & Partners Law Office Contact: Miros∏aw Stefanik, ms@pnplaw.pl
SHUTTERSTOCK
PGNiG wants to trade some of its exploration rights; Talisman Energy starts drilling in August
SHUTTERSTOCK
Shale gas search gains momentum
Talisman Energy will begin drilling in August
JANUARY 17-23, 2011
Sales of heavy commercial vehicles rose 37 percent year-on-year in 2010
The latest results of the commercial vehicle sector indicate a robust revival of the industry and offer further proof of Poland’s economic rebound Indications are that the commercial vehicle sector is back on track after the 2009 economic crisis, which saw sales plummet. In December of 2010, sales of vehicles weighing over 3.5 metric tons exceeded 1,800, an increase greater than 75 percent y/y, according to the Polish Automotive Industry Association (PZPM). This also represented an 18 percent increase compared to November 2010 sales. Vehicles weighing over 16 metric tons were particularly popular in December. Some 1,300 of them found buyers, an almost 100 percent increase y/y and a 16 percent jump when compared to the previ-
ous month. The recovery seems stable, as the industry registered a significant improvement during the entire second half of last year. From July to the end of December, 8,200 commercial vehicles were sold, representing a 60 percent increase compared to H2 of 2009. In the whole of 2010, 13,800 heavy commercial vehicles were sold, a 37 percent increase y/y. “We saw good growth in H2 of last year and we are still seeing strong demand from long-haulage transport firms as well as from the construction industry, which seemed practically dead at the begin-
ning of 2010. W e expect the first two quarters of this year to be even better than the last two quarters of last year,” said Pawe∏ Scieszko, sales manager at Scania Polska. “What will happen in H2 of 2011 is harder to predict, because most probably producers will raise prices as they see sales go up. It’s a question of whether demand will still be strong enough for the market to absorb those increases. We shall see,” he added. In the first 11 months of 2010, The Central Statistical Office recorded a total of 116.9 million metric tons of transported goods, representing a 12.9 percent y/y increase. This is further evidence that trade and in effect, the Polish economy, is well on its way to getting back into full swing. Remi Adekoya
US and Polish bioplastics firms join forces in multi-million dollar deal California-based manufacturer Cereplast has announced an agreement worth several million dollars with BioWorks Pl to supply bioplastic resins to the Polish market. “In 2011, P oland has the potential to become a multimillion dollar bioplastics market and this partnership enables us to capture substantial marketshare,” F rederic Scheer, founder, chairman and CEO of Cereplast, said in a statement. Bioplastic resins are used to produce bio-based plastic, an increasingly popular alternative to traditional petroleum-based plastic among European industries and consumers.
According to the European Bioplastics association, annual growth of the bioplastics sector is considerably higher than 20 percent and could potentially comprise between five to 10 percent of the total European plastics market. Poland is seen an important partner in helping to meet this demand. “The W estern European market for bioplastics continues to grow at a strong pace and Poland plays a critical role in this growth,” agreed Norbert Zimnik, chairman of BioWorks Pl. But the P olish market might not be ready to deal with bioplastics products on a
large scale yet. According to Hanna ˚akowska, head of packaging R&D at the Polish Packaging Research and Development Center (COBRO), the absence of a national collection system for bio-waste constitutes a major obstacle. Higher costs than regular plastics also constitute a major drawback that prevents Polish producers from switching en masse to greener packaging. “The Polish bioplastics market is still very small, but in a few years when collecting biowaste becomes easier, there will be better possibilities,” commented Ms ˚akowska. Alice Trudelle
BUSINESS ENVIRONMENT
JANUARY 17-23, 2011
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Development capital
Ranking big Polish cities
New research offers some common wisdom and surprising insight on major Polish cities Warsaw is top among large Polish cities when it comes to overall development potential, according to new research by PricewaterhouseCoopers. That’s not surprising given its status as the financial and administrative capital of the nation, but the research does draw some unexpected conclusions, such as the idea that a provincial capital in the eastern part of the country offers the highest quality of life. PwC’s “R eport on L arge Polish Cities” measures the development potential of 11 major cities. Seven categories are considered: democratic institutions; infrastructure; quality of life; human capital; image perception; investment attractiveness; and the city’s ability to raise finance. Warsaw topped the list in four out of seven categories, with Bydgoszcz and Lublin consistently underperforming the average.
Where to invest... When it comes to investment attractiveness, Warsaw is the clear leader, scoring 202.5 points against an average of about 100 points. W roc∏aw came second (118.3), while Kraków was third (113.7). Among a number of criteria used to calculate invest-
ment attractiveness were the number of firms investing there in the past three years, volume of investment per inhabitant, salary levels and zoning plans. W arsaw lags according to the latter criterion – only about 20 percent of the capital is zoned – but it was the clear leader in the rest of the categories. Wroc∏aw, meanwhile, has the highest number of foreign investors per inhabitant in Poland. One of the city’s biggest advantages is its almost 30,000 technical university grads. Investment conditions in W roc∏aw are also considered by investors to be one of the best in Poland. Thirty-eight percent of the city is covered by zoning plans and it gets high ratings for its quality hotel and educational services. For its part, Kraków is also praised for its technical university graduates, having even more than Wroc∏aw. Another advantage is the number of high-standard hotels and language schools. The city lacks
tute, a think tank. “Also, Wroc∏aw is simply a better-run city than W arsaw or Kraków thanks to its mayor, Rafa∏ Dutkiewicz,” he added.
sufficient international schools, however, which could be a disincentive for foreign businesspeople. Another negative is also that only 14 percent of the city is zoned, the lowest among the 11 cities surveyed. “I am not so surprised that Wroc∏aw does better than Warsaw and Kraków when it comes to zoning plans. W e have to remember that Wroc∏aw became a Polish city
...and where to live
“Wroc∏aw is simply a better-run city than Warsaw or Kraków thanks to its mayor” after World War II, and thus there are no pre-war owners or descendants of owners that the city has to reckon with. Such is not the case in W arsaw or Kraków,” said P iotr Libicki, an expert on urban planning at the Sobieski Insti-
In the quality of life ranking, Bia∏ystok – capital of the northeastern P odlaskie voivodship, scored the highest, mainly thanks to its clean air and focus on environmental protection. It also has the lowest crime rate of the 11 cities, relatively cheap apartments of decent standard and a short waiting time to see doctors. “I was positively surprised at Bia∏ystok’s performance in this ranking and happy to see that factors like the state of the environment were taken into consideration. Usually when people think of quality of life, they are thinking about the level of salaries and other material aspects,” said P iotr Tryjanowski, a professor at Adam Mickiewicz University
in Poznaƒ. Warsaw placed second in the category. It has the highest salaries and the best educational institutions, but is also the most expensive and the most polluted. “When it comes to cities like Warsaw which have a lot of immigrants, one has to take psychological factors into consideration. Usually when one has made a decision to emigrate from city A to city B, the person has the tendency to talk favorably of city B as being a good place to live in order to justify his prior decision,” commented Mr T ryjanowski. Szczecin came third in this category. The city spends the most on environmental protection, has an efficient health service and some of the best-performing government offices and institutions. But it has a limited number of educated inhabitants and low-rated institutions of tertiary education. Remi Adekoya
Metropolitan matters Development capital ranking, top five Polish cities Infrastructure
Human and social capital
Culture and image
Democratic institutions
Ability to raise financing
Kraków (120.8)
1.
Warsaw (128.5)
1.
Kraków (169.4)
1.
Warsaw (120.4)
1.
Warsaw (139.8)
2.
Warsaw (118.3)
2.
Poznaƒ (115)
2.
Warsaw (159.1)
2.
Poznaƒ (112.8)
2.
Szczecin (118.8)
3.
Wroc∏aw (110.7)
3.
Wroc∏aw (107)
3.
Katowice (119.1)
3.
Tri-city (103.5)
3.
Poznaƒ (113.7)
4.
Poznaƒ (106.7)
4.
Katowice (104.6)
4.
Wroc∏aw (111.6)
4.
Lublin (101.8)
4.
Bia∏ystok (107.1)
5.
Katowice (103.2)
5.
Kraków (104.6)
5.
Tri-city (110.7)
5.
Kraków/Katowice (100.8)
5.
Katowice (102.7)
1.
Source: PricewaterhouseCoopers' "Report on Large Polish Cities"
Polish exports leap 10.7 percent World Bank calls on Poland to aid others In the first 11 months of 2010, Poland exported some z∏.432 billion worth of goods and imported nearly z∏.480 billion, Central Statistical Office (GUS) data shows. Compared to the same period in 2009, the total value of exports jumped 10.7 percent, while imports gained 12.5 percent. “The trade deficit will continue to grow this year,” said Piotr Kalisz, chief economist at Citi Handlowy. “Poland’s economic growth is driven by domestic demand which requires a large amount of imports,” he explained. Exports, he said, are still likely to continue growing this year but at a slower pace than in 2010 because of the expected slowdown in the euro zone. Germany purchased 26.1 percent of all Polish exports in the first 11 months of 2010, which represents a decrease of 0.3 percentage points on the previous year. Germany also
shipped less to Poland, but its wares still accounted for 21.9 percent of all imports. Polish exports increased to Slovakia, R ussia, Sweden, Hungary, the Czech Republic, France, the Netherlands and the UK. Since Poland’s accession to the European Union in 2004, Germany’s role as its main trading partner has been grad-
ually diminishing. “This is a structural change and is likely to continue,” said Mr Kalisz, adding that it will nevertheless be many years before other countries even get close to Germany. France, P oland’s secondlargest export partner, accounted for 6.9 percent of all exports last year. Gareth Price
Trading places Poland's top 10 export partners (in % share) for the first 11 months of 2010
30 25 20 15 10 5 % Germany France
UK
Italy
Czech Russia Netherlands Sweden Hungary Slovakia Republic Source: Central Statistical Office
In a testament to P oland’s growing maturity as a world economy, Ngozi OkonjoIweala, the managing director of the W orld Bank, has called on it to aid less wealthy countries. Speaking last week during a visit to Warsaw, Ms OkonjoIweala described P oland as a “high-income country” which needed to share its experience and success with nations that are currently less wealthy and developed. The World Bank classifies countries whose gross national incomes are at least $12,196 per capita. According to its figures, Poland’s GNI per capita amounted to $12,260 in 2009. Ms Okonjo-Iweala and Andrzej Raczko, the vice president of the National Bank of Poland, both stressed that Polish aid should not be viewed as charity. “Aid is not charity, it is an investment. An investment in
emerging markets which are growing fast and which richer countries can do business with,” said Ms Okonji-Iweala. Developing countries have accounted for about half of the increase in global import demand since 2000. The World Bank points to the fact that advanced economies need these extra sources of demand to support their economic recoveries and to create jobs. Developing countries, meanwhile, need better access to overseas markets and often offer key mineral resources. Mr Raczko further emphasized the pragmatic advantage of supporting less developed countries. “If we support developing countries in building their infrastructure ... it makes it easier for our firms to conduct business more efficiently in those countries,” he said. Remi Adekoya
7
Few firms offering retirement programs The latest moves by the government in the context of open retirement funds (OFE) and the general discussion around it may prompt more companies to develop employee retirement programs. To date, about 27% of companies offer such programs, these being mostly “international” enterprises, according to a study made by Mercer. Experts predict that these numbers will grow quickly. However, Poland is regretfully one of the very few countries that do not offer tax breaks for saving in a retirement program.
Rolls-Royce rolls into Poland After Bentley, Maybach, Ferrari and Aston Martin, yet another automobile legend is entering the Polish market. The famous Rolls-Royce brand will be inaugurating its first service center in Warsaw next week. The British brand has chosen Auto Fus as its dealer. Auto Fus’ owners were not available for comment, but company co-owner Tomasz Fus, in an interview for Puls Biznesu over a year ago, declared that he would be happy if he could sell three such vehicles annually. The most affordable Rolls, the Ghost, comes with a price tag of approximately z∏.1 million.
Croatia takes aim at WSE The WSE is becoming well known outside of Poland, Parkiet reports. The latest region to take notice of the Polish bourse is the Balkans, with the first Croatian firms already setting their sights on WSE debuts. First up is Dalekovod, a Croatian construction firm, which is currently analyzing the procedures for entering a foreign stock market, reports Parkiet. A decision is expected in February. Dalekovod is already listed on the Zagreb market, where it’s worth some z∏.345 million. ●
8
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INTERVIEW
JANUARY 17-23, 2011
A social agenda Politics
Tadeusz Iwiƒski, a Democratic Left Alliance MP and vice chairman of the Sejm F oreign Affairs Committee, talks about politics, the left’s expectations for the autumn elections and the Polish presidency of the EU Ewa Boniecka: The Democratic Left Alliance [SLD] is selling its long-time headquarters on ul. Rozbrat in Warsaw and moving to a modern building. Some observers see this as a symbolic gesture – upgrading the party’s image before this year’s parliamentary elections. Is this the case? Tadeusz Iwiƒski: As a member of parliament for 20 uninterrupted years, I have witnessed many changes in our political scene, including those on the left. SLD parting with the old headquarters evokes in me sentimental feelings, yet there are financial and other demands which make it necessary to move our headquarters to smaller and more modern facilities. It is only a change of address, not a symbolic gesture. We are the same social democratic party. [The buyer for SLD’s HQ building pulled out of the deal last week, but a spokesperson for the party said that the sale process would continue – ed.] Social democratic parties are facing crises across Europe. How do you assess SLD’s situation in this election year? I agree that Europe’s social democratic parties are facing crises and they have lost their leading roles in many countries. A decade ago – in 2001 – social democratic parties were in power in 12 of the 15 EU member states, and today they are generally in the opposition. The political tide has flowed against the left and so far the conservative-liberal trend is dominant in European politics. Yet I think that leftist parties have the political potential to revive their strength and are now making new efforts to win the support of voters. W e present a broad spectrum of progressive social, economic and ethical proposals which could make our societies more just, caring ... and open to change in ethical matters. Yet it is a time of financial crises in Europe. People are afraid of change and are often attracted to populist solutions proposed by various radical groups, so the
left has a difficult task ahead of it. Additionally, the decline of leftist parties results from reasons specific to each country. The crisis of SLD – putting aside our own errors – also has roots in internal splits and divisions on the left. This was demonstrated [in 2004] when the then-Speaker of the Sejm and long-time SLD member Marek Borowski led 33 MP s from our parliamentary club and established his own party. It very quickly became marginalized, but the divisions confused voters and lowered our support in consecutive elections. What is the main challenge for SLD now? In my opinion SLD has not been able to prevent the dissociation of the social left from the political left. The social left has to concentrate on the principles of social justice, respond properly to the needs of the poorer sections of society, fight for equality in education, health, housing and com-
“SLD has not been able to prevent the dissociation of the social left from the political left” munity life, while the political left should build broad connections with trade unions, NGOs and members of other groups who share the general ideas of the left. I think that one cause of SLD’s weakness in the last decade was that the social left, the underprivileged groups of society, lost a lot of confidence in the political left, in SLD itself. If we rebuild the confidence of the voters is our party, work out a program of compromise between the role of the state and the automatic rules of the market and put the rights of the human being at the fore, we could obtain at least 20 percent support in a parliamentary election.
Yet recently it seems like SLD has been focused on ethical and moral proposals like in vitro, abortion, the secularity of the state, all the while pushing aside social problems… I do not see it that way – that’s a superficial impression. Our party is aware that social and economic problems are of prime importance for people in Poland. I see in my constituency in the W armia and Mazury region, which has the highest unemployment rate in our country, how social inequalities are growing. For so many families there are no chances to escape from poverty. It is fundamental for a leftist party to respond to those problems, so SLD’s ethical proposals should not overshadow our social and economic program. I emphasize that there should be a strong link between the social and political aspects of SLD’s program. Matters such as the protection of human rights, respect for the rights of women and different minorities, the secularity of the state – these are ingredients of all leftist party programs, so naturally they are for SLD. Do you expect that the “Polish-Polish war” will continue in 2011, an election year? I [dislike] the phrase “P olishPolish war,” because it is only a heated conflict between two parties of the right – PiS [Law and Justice] and PO [Civic Platform] – in which SLD and PSL [the Polish People’s Party] are not taking part. It is a war between colleagues from the same political backyard. When they were in opposition they were united in attacking the left and had similar slogans during the elections in 2005. What divided them was the problem of power – when one of them gained it, they became mortal enemies. I think that during the upcoming election campaign we will see the last chapter of that “war” and it will be influenced by two elements: the crises in the P olish economy and the PO government’s means of dealing with it; and second, what the final conclusions of investigations into the Smolensk catastrophe are and how they will be politically exploited. Yet I think that ... Civic
INTERVIEW
JANUARY 17-23, 2011
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9
MP Palikot resigns Political maverick Janusz Palikot officially resigned from his position as an MP last Monday, after handing in his resignation papers to Grzegorz Schetyna, the Speaker of the Sejm. Mr Palikot left the ruling Civic Platform party in October 2010 to form his own political grouping, called the Movement in Support of Palikot, and soon afterwards promised that he would resign as an MP.
Platform will be mainly judged by people for what they have done in government. And due to the lack of financial and other reforms, that verdict could be harsh, so I do not believe that PO will win an absolute parliamentary majority. And while Law and Justice is weakened by its leader’s political behavior, it will not disappear. It will keep its iron electorate of 20 percent. So after the election I expect a new political game to be opened, where the old enemies, PO and P iS, will eye each other, but they might have less ammunition.
Polish analysts are excited at reports that Germany’s gross domestic product jumped 3.6% in 2010, driven by a rise in consumption and growing exports. This is also good news for Polish firms, many of which do regular business with Germany and are now looking forward to more orders from the western neighbor.
PolandLithuania energy link EAST NEWS
What if PO needs to look for a coalition partner, PSL doesn’t make it into parliament and SLD has a good result? Can you envisage your party entering into a government coalition with PO? It will all depend on the election results, but there is a possibility of that or even of establishing a coalition between PO, PSL and SLD, because a two-thirds majority is needed in parliament to change the constitution. In the difficult economic and political situation, there are examples in Europe of alliances between conservatives, liberals and social democrats. And if I had to point to some common ground for such cooperation in Poland, it would be the modernization of the country and conducting a stable and reasonable foreign policy in the European Union, towards R ussia, other neighbors and the US.
German economy pleases exporters
Tadeusz Iwiƒski says SLD would be willing to enter a c oalition with PO
One of SLD’s demands is the withdrawal of Polish troops from Afghanistan, but President Komorowski has set the pull-out date for 2014. So is this conflict a thing of the past? We have to consult with our partners in NATO, but SLD is for starting to withdraw Polish soldiers in 2011 or not later than 2012, like some other allies are doing, including the Canadians. We do not have to stay longer and [a pull-out] would be understood, because Poland has already used up its human and military resources to fight terrorists in Afghanistan.
American military presence here? We have to look at it in the broader context of our security. The US, as the strongest country in NA TO, is an important guarantor of our security. Yet from the beginning I have considered the fact that PiS and PO are chasing American installations in Poland to be embarrassing and shortsighted. In fact we are not a strategic partner for the US, because their priorities are global, so for Washington relations with R ussia are most important and we have to take that into account. W e should of course have very close relations with the US, should care for our security above all by maintaining a strong role in NATO and should make all efforts to build a meaningful position in the European Union. And in that context we should develop better relations with R ussia, based on partnership. That is the essence of the foreign and security policy which SLD supports.
What’s your take on the problems Poland has in getting an
Poland will hold the presidency of the EU while parliamen-
tary election campaigns are taking place and there is concern that it could hurt our performance. What do you think about the proposal to establish a special parliamentary committee for the presidency which would include both governing and opposition parties, cooperating to fulfill the presidency’s duties? I regard that proposal as a curious one, because we
“The government has set too many priorities for the Polish presidency” already have committees for European Union and foreign affairs in both the Sejm and the Senate, and these include members of all party factions. Therefore I don’t see any need to establish an additional body to deal with the problems of running the presidency. The main challenge is, on the one hand, to avoid the misuse of the the EU presidency for electoral purposes by the government, and, on the other
hand, to be able to establish a mechanism to cooperate with opposing parties, involving regular debates and perhaps create a formal agreement. Yet so far the government has not made good use of the existing committees or even the Sejm as a whole as a forum for presenting and discussing, at the proper level, those matters connected with the preparations for the presidency. And it is necessary for all parties to discuss the priorities and draw conclusions from the good and bad experiences of previous national presidencies. In my opinion, the government has set too many priorities for the Polish presidency – six key priorities and 11 additional ones. This doesn’t take into account the fact that, under the Lisbon T reaty, the role of the country running the rotating presidency in the framework of three participating countries – our partners will be Denmark and Cyprus – is limited. So Poland has first of all to continue the general EU agenda, to follow up the Hungarian presidency, deal with the new EU budget perspective start-
ing in 2014, yet not having a decisive voice here. And in my opinion we need to concentrate on energy policy and the Eastern Partnership. And, given the caustic political atmosphere in Poland, do you believe that it will be possible to establish such cooperation during an election campaign? I want to believe that such cooperation will be possible during the presidency, but I am not certain it will materialize. I think that much depends on Prime Minister’s Tusk position on this and his efforts to exclude the presidency from the electoral campaign. Yet it requires statesmanship on his part and we will see if he shows it. W e have to remember how the Czech presidency was damaged when their government collapsed and what a bad image it gave the Central Europe region. Certainly my party will try to help by showing our political maturity. The success of the P olish presidency is in our national interest. So politicians and parties who would ignore it should pay a political price during the election. ●
The EU has announced it will provide public money to help build an energy link between Poland and Lithuania, reports Parkiet. The project will be led by PSE Operator and will get some z∏.683 million in EU funding. The money will go toward strengthening energy infrastructure at the borders of the two countries and also towards the construction of an energy bridge that is expected to come online by 2015.
AmCham gets new head Joseph Wancer was elected last week as the new chairman of the American Chamber of Commece in Poland. Mr Wancer is an advisor to the board of directors at consultancy firm Deloitte and has over 40 years of experience in the banking sector. Judith Gliniecki and Richard Lada will continue serving on the board of directors as vice chairs. Mr Lada is vice chairman at Telesto and Gliniecki is a partner at Wierzbowski Eversheds. ●
10
OPINION
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JANUARY 17-23, 2011
Eurofit or diet of pain? “T
he operation was a success, but the patient died,” goes the old joke. I’ve been reminded of it lately as I read the many – and wildly diverse – economic forecasts for 2011. It often seems that analysts, just like doctors, place too much confidence in instruments and diagnostic charts. And this year, even more so than in 2009, the struggle with the disease known as economic crisis will depend on the patients’ condition and their willingness to undergo surgery.
This might hurt a little Economists can see a light in the darkness. Europe, drowning in debt last year, grasped at the only means of escape and prepared a life raft to save its finances and its economy. But the test of its effectiveness has only just begun. It is this very
year that Europeans must learn to live frugally, put up with tax hikes and agree to later retirement. Much clenching of teeth will be heard. The effects of the cure should really be felt in early spring, when we see if (and by how much) consumption is hit by lower incomes, price hikes and higher taxes. We will also learn whether public sentiment has been damaged by the fear of unemployment. Pessimism and frustration are sociological forces which could put a strong brake on growth. According to Gallup’s latest opinion poll, conducted in December, the British and the French have already been overwhelmed by negative feelings as their governments cut back sharply on social spending. Extreme pessimism was noted in Spain, where some 91 percent of citizens consider the state of the nation to be bad or very bad.
The Greeks are threatening more protests for 2011 and the Irish are still reeling from the shock caused by their government cutting expenditures by €4.5 billion and raising another €1.5 billion from tax hikes.
“Pessimism and frustration are sociological forces which could put a strong brake on growth” A community on the edge An economic crisis is always followed by a crisis of confidence in a nation’s politicians. Affluent societies never perceive a government
which introduces drastic austerity plans as being just. This is especially true when these societies are unaccustomed to sacrifice, fiscal discipline, and regard their privileges, financial security and consumption habits as deserved. However, it is astonishing to see along what line the current crisis has split Europe in two. The most crisisresistant and optimistic societies are those of the Scandinavian nations, Germany and … P oland. That’s right, P oland the pessimist has joined the ranks of those countries whose governments implemented strong savings plans in the first half of 2010. “To a certain degree social moods are self-fulfilling economic forecasts since it significantly depends on them whether people will consume more and take loans and entrepreneurs will invest.
Joanna Wóycicka
However, peoples’ moods do not just reflect the objective condition of the economy but also many other factors, above all cultural ones,” maintains Daniel Cohen, a professor at the P aris School of Economics. It is precisely this social, rather than strictly financial, dimension which will have a decisive influence on Europe’s future. The resilience of individual societies will decide if the EU emerges from its drastic diet in the same basic form, or whether it finally splits into a “multi-speed Europe.” ● Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com
Sanctions on Belarus insufficient for Poland
G
erman Chancellor Angela Merkel said on January 12 that she would be in favor of the European Union renewing its travel and visa sanctions against Belarusian leadership figures, a matter which will be decided upon at a January 31 EU summit. The statement came after the EU ambassadors in Minsk issued a report recommending 14 measures against Minsk. The recommendations included potentially reviewing all active EU programs of which Belarus is a beneficiary (Belarus received approximately $13 million from such programs in 2010) and opposing any future International Monetary Fund (IMF) loans to Minsk (Belarus completed a $3.46 billion IMF loan package in April 2010 when it received the last $670 million tranche).
Leading the charge Germany’s support for renewed sanctions against Belarus comes as Poland is leading a charge against Minsk’s leadership because of its crackdown against opposition leaders during the presidential election on December 19. While Poland will certainly welcome an EU-wide consensus on renewing sanctions against Belarus’ leadership, and perhaps other measures against Minsk, Warsaw would prefer a more active approach to Belarus: direct support of opposition leadership through funding and training. The Polish government announced on January 7 that it would host an international conference called “Solidarity with Belarus’ Donors” in War-
saw on February 2 in an attempt to aid and fund Belarus’ political opposition. The conference was announced two days after Poland’s ambassador to the United States, Robert Kupiecki, called on Washington to help fund dissidents in Belarus. Aid for the Belarusian political opposition has come via two lines: one from Poland and one – much smaller line – from Lithuania. The more established line of assistance from Poland has had a monopoly on organizing the funding from a variety of Western sources – including the usual
“The recent crackdown on the opposition in Belarus incensed the Polish leadership” US organizations concerned with democratization – and funneling it to various Belarusian political movements. Much of the funding also went to student groups and towards the education of many Belarusian students in Poland. Warsaw also tried funding a Belarusian satellite television station, Belsat, but the project was deemed too costly to become successful. Right before the latest presidential election, Poland decided to try a far more direct and personalized appeal to Belarus’ leadership. Sensing that a possible opening existed in the Belarusian-Russian alliance due to the spat between Belarusian President
Aleksander Lukashenko and the Kremlin, Poland decided to negotiate with Lukashenko directly. The German and Polish foreign ministers traveled to Minsk on November 2, 2010, and asked Lukashenko to hold free and fair elections and allow all eligible candidates to register for elections. In exchange, Poland would change the dynamic within the European Union toward Belarus, offering diplomatic recognition and greater access to funds.
Bargaining chip Lukashenko, however, used the diplomatic opening with the West as a bargaining chip with Moscow, getting a deal with Russia on oil tariffs the following month. In the deal, Russia agreed to scrap its oil export tariffs – a $4 billion value to Minsk – and to maintain current natural gas prices for 2011. Lukashenko then signed all 17 documents needed to create the Unified Economic Space, or customs union, with Russia and Kazakhstan, which is what Russia wanted. In the long term, the deal is more beneficial for Russia, as it enhances its already near-complete economic control over Belarus via the customs union. But in the short term, Lukashenko gets much needed economic relief. The specifics of the deal are not yet settled, however, and Russian oil has stopped flowing to Belarus until the terms of the deal are settled – although Minsk has enough oil to run its refineries until January 20. The recent crackdown on the opposition in Belarus
incensed the Polish leadership, which thought its diplomatic strategy with Minsk was working and that Lukashenko was warming to the idea of greater collaboration through the EU’s Eastern Partnership program. Poland hoped it would be able to show the EU heavyweights – France and Germany, in particular – that it had the clout and strategy to control Lukashenko and entreat him to improve relations with the West. This would be a big move for Warsaw, as it would show that it is an influential geopolitical player in Europe, capable of eroding Russian influence on its periphery. The subsequent crackdown has left Warsaw looking like it not only lacks influence, but also that it lacked the foresight to see that it was being used by Minsk in its negotiations with the Kremlin.
Upping the ante Poland now wants to up the ante and concentrate more on funding dissidents and political opposition. However, this approach has thus far been largely ineffective, as the recent elections in Belarus showed. Opposition groups within Belarus have become dependent on international funding and are becoming “survival-oriented.” They are far more interested in continuing the stream of funding than in creating change. The opposition did not unite to field one candidate for the presidential election – a classic shortcoming of any attempt at effective regime change. There has also been no effective grassroots movement that transcends party politics. Poland’s support for opposition movements in Belarus shows no signs of being effective in the future. It especially
will not be effective if Poland lacks support from other Western powers, which is why US and German support is central. Germany’s call for a renewal of travel sanctions against Belarusian leadership – which would simply be a renewal of the 2006 visa restrictions, suspended in 2008, on Lukashenko and senior officials – is not the active approach that Poland wants. The threat of future EU vetoes on IMF loans might get Lukashenko’s attention, but the travel sanctions will not. Furthermore, if Warsaw is going to create effective opposition to Lukashenko inside Belarus, it will need far more than the same old strategies. ● “Sanctions on Belarus Insufficient for Poland” is republished with permission of STRATFOR
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OPINION
JANUARY 17-23, 2011
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11
Dealing with “the Smolensk lie”
T
he R ussian report on the events surrounding last year’s Smolensk plane crash which killed President Lech Kaczyƒski and 95 others (see story, p.3) was bound to stir controversy and emotions in Poland. After all, mistrust of Russia is ingrained in Poles after centuries of antagonism. Conspiracy theories – most suggesting Russian involvement in the crash – were circulating the internet within hours of the event. The report released last week is problematic in that it does nothing to starve the flames of mistrust. Its author, the Interstate Aviation Committee (MAK), lays the blame squarely on the Polish side, with scant reference made to the R ussian air-traffic controllers or the infrastructure of the Smolensk Airport itself, which can be described as rudimentary at best. Also inflammatory from the P olish side’s perspective is the finding that General Andrzej B∏asik, then head of Poland’s air force, was in the cockpit when the plane crashed and, moreover, was under the influence of alcohol. But it is the one-sidedness of the report’s findings which seem most frustrating for Poland. “We know it’s 80 percent our fault, but why can’t the Russians even acknowledge the 20 percent that is their fault,” is a refrain heard recently in the media. In other segments of society, the phrase “the Smolensk lie” is becoming all too common.
Only the truth Prime Minister Donald Tusk is now in a tight spot. Since the beginning of
In
the investigation, L aw and Justice, the opposition party headed by Jaros∏aw Kaczyƒski, the late president’s twin, has accused the PM of having played naively into the R ussians’ hands. Instead, they say, he should have fought for greater Polish influence in the investigation in the
the MAK report, the PM called it “incomplete,” though he tempered this by saying he did not question the basic themes of the report. The PM also stated that Poland’s report would be ready soon and that the country would invite the Russians to discuss the MAK report’s findings,
December. Mr Tusk stated after the report was released that the Smolensk tragedy didn’t “have to be a blow” to good Polish-Russian relations. This was the tack to take, as it would be a shame to spoil the progress made over the last year between the two
critical first days after the accident. In those moments, when the whole world was watching, the R ussians would have found it politically difficult to refuse a P olish request, goes the argument. With his opponents now redoubling their criticism, any action taken by the prime minister will be closely scrutinized. In his initial response to
noting the option that P oland could turn to international aviation organizations if no agreement could be reached.
countries; a return to the acrimony and recriminations characteristic of relations under the previous government would benefit no one. For now, the ball is in the R ussian’s court, regardless of sputtering to the contrary. Russian Foreign Minister Sergey L avrov’s initial reply to Polish concerns was that MAK’s investigation had been conducted by
Russian to conclusions? This is the first real test of the Polish-Russian reset, which looked very promising after the visit of President Medvedev in Warsaw last
an international committee completely independent of the R ussian government, but this rings hollow. The committee is headquartered in Moscow and its bailiwick comprises former Soviet republics. It has been headed by the same R ussian woman for nearly two decades and its investigative team is composed mainly of – that’s right – Russians. To suggest that it operates independently of the Kremlin smacks of the absurd. Donald Tusk cannot afford to lose face and the Russians are undoubtedly aware of this. The safest course of action would be to arrange a prompt meeting with Polish officials, hear out the Polish concerns and identify the sticking points. Then it’s a matter of working out a compromise on the final wording of a revised document, one that at least acknowledges the possibility that the airport and airtraffic controllers could have played a role in the crash. This would not satisfy all P oles – certainly not the conspiracy theorists – but it would certainly be more palatable to the mainstream of society. Is Russia capable of such a compromise? Yes. The steps it’s taken towards acknowledging crimes of the past, as evidenced by its recent rapprochement with P oland over the 1940 Katyƒ massacre, are proof of this. The Kremlin is much tetchier when it comes to admitting culpability with regards to recent events, but surely it must be aware of the alternative – that the weight of “the Smolensk lie” will be too much for P olishRussian relations to bear. ●
Legally imposed tightening – Poland’s only hope for fiscal responsibility?
response to all the hullabaloo over the government’s tweaking of the pension system to avoid breaching the 55 percent debt-to-GDP ratio, a number of economists have come out and said that cross-
ing the threshold – which would legally bind the government to certain fiscal limits – might not be so bad. As these experts argue (see story, p. 4), the law requires measures that would do the Polish economy good –
limiting debt, freezing publicsector wages, and so forth. The media (this newspaper included) has often termed these “austerity measures,” but they hardly seem austere, experts argue, compared to what some countries in
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Europe are being forced to do. By that rationale, rather than bending over backwards to gerrymander its finances, the government could easily allow the threshold to be breached, thereby implementing much-needed savings measures. In this way the public finance law would provide a convenient excuse. That’s one way to look at it, anyway. But the argument ignores the political risk inherent in breaching the threshold. This government made its economic credentials a big part of Bronis∏aw Komorowski’s spring election campaign, arguing that it had skillfully navigated P oland through the global economic crisis and that putting its man in the P residential P alace would allow it to continue to competently guide the country’s finances through the rough waters ahead. It would take some tricky politicking indeed for Civic Platform to brandish its economic credentials in this
year’s parliamentary elections if it had headed the first government to breach legally mandated limits on profligacy. Crossing the threshold would also get plenty of play in the media, putting the spotlight on the fact that Poland’s debt and deficit are higher now than during the reign of Civic Platform’s “incompetent” and “unprofessional” predecessors. That, along with its natural aversion to risk, is likely why the government has chosen to fiddle with the numbers (and people’s pensions) instead. Despite the controversy over its plan, Civic Platform’s approval ratings have risen four percent over last month, according to pollster TNS OBOP, suggesting that pensions are no “third rail” in Polish politics. Civic Platform may not be as fiscally conservative as many would like, but it is definitely savvy. Of course there’s a third option. Rather than playing at creative accountancy or quiet-
ly allowing the debt to breach 55 percent of GDP in order to implement austerity measures, the government could simply cut social spending. It has already slashed some overly generous public pensions and has passed a bill that would cut public administration by 10 percent (though President Komorowski has deferred this bill to the Constitutional Tribunal). Assuming that bill eventually gets passed into law it would be a good start. But the government also needs to cut other unnecessary handouts, perhaps by reforming the Agricultural Social Insurance Fund (KRUS) and the Social Insurance Institution (ZUS), and by further slashing bureaucracy. Alas, that’s too much to ask of politicians facing an election year. So maybe the experts are right – if we want more fiscal responsibility from the government in the long term, perhaps we should hope for less in the short term. ●
12
COVER STORY
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Value-added tax
Directors’ wages grow the most
Anthony Casey
The (rising) cost of living in Poland
The highest ranking employees saw the highest wage increases in 2010, Rzeczpospolita reports. Directors made on average 8% more in 2010 than in 2009 (to reach z∏.10,800), whilst managers supervising teams of at least 11 workers made 7% more (i.e. z∏.5,900) than in 2009. People working in other positions did not enjoy noticeable increases in compensation, according to the National Salary Study, conducted by consulting firm Sedlak&Sedlak.
The January 1 VAT hike isn’t expected to break the bank, but could it influence this year’s elections? One percentage point. Taken out of context, it’s hardly a menacing figure. And in many cases, one extra percentage point of value-added tax (VAT) – the general tax increase implemented as of January 1 – is unlikely to make a serious dent in anyone’s wallet. This is an election year though, and so any inroad into the public’s pockets could have a huge political impact. So for P rime Minister T usk and the governing Civic Platform party, the VAT hike represents a gamble. If everything goes to plan and the government takes in the predicted extra z∏.5-6 billion in tax revenues without damaging consumption or living standards, it will be a coup for the party. The alternative would mean a loss of political capital and little time to bolster its popularity before the autumn parliamentary elections.
Polish consumer prices rise Consumer prices in Poland rose 0.4% m/m in December, dragging inflation up to 3.1% y/y. Core inflation, which excludes food and energy prices, rose by 0.3 percentage points on the month previous to stand at 1.5%. The data increases the likelihood that interest rates will be hiked before the end of this month, analysts say. “Following [head of the central bank] Marek Belka’s new signals earlier this year, we now expect the first interest rate hike 19 January,” Nordea Bank stated.
Justifying the cost The government’s rationale for the increase is that it will help prevent public sector debt in Poland from passing 55 per-
Polish market not so free
cent of GDP . Crossing this threshold would trigger legislatively mandated austerity measures, a scenario which the government is exceptionally keen to avoid. The Finance Ministry’s most recent estimate put the 2010 public debtto-GDP ratio at “below 53.5 percent.” Accordingly, the government hopes the one percentage point increase in VAT will help rein in public debt this year as well. Minister without portfolio Micha∏ Boni believes this, alongside an expected, managed increase in inflation, will raise enough to keep debt under control. Inflation stood at 3.1 percent at the end of December, according to a Finance Ministry estimate, and is expected to rise this year to 3.5 percent. The worry, however, is that increases in both V AT and inflation will compound each other, hitting voters squarely in the household budget. Moreover, discussion of the seemingly innocuous one percentage point figure is deceptive – top-level VAT is increasing from 22 to 23 percent, yes, but in some industries affected by lower level VAT, the hikes have been more significant. For example, V AT on unprocessed foods such as meat, milk, fruit and vegetables has risen from three to five percent (this is offset
somewhat by a reduction from seven to five percent of V AT on processed foods such as bread and juice). Books and specialist magazines are now subject to V AT for the first time, at a rate of five percent. Homebuyers seeking larger houses or apartments must now pay the 23 percent rate on any square meterage exceeding 150 sqm (for an apartment) or 300 sqm (for a house) instead of the eight percent rate applied on space below that threshold. And the
VAT. A rise in clothing and electricity prices (ranging between 10 and 30 percent, according to Dziennik Gazeta Prawna), has been blamed on rising costs of raw materials, production and distribution. So far though, aside from a few scattered but vocal demonstrations in W arsaw after the initial V AT-hike announcement, there is no sign that the cost of living will be squeezed to the point of sparking mass unrest. And according to Michael Dembinski, head of policy at the British Polish Chamber of Commerce, the one percentage point increase in V AT is unlikely to prove a great deterrent to shoppers. “Polish consumer spending was growing robustly in the second half of last year – 11.8 percent up in the year to November 2010. The V AT increase will take some wind out of the sales, but not enough to seriously affect the economy,” Mr Dembinski said. Miros∏aw Barszcz, a public finance expert at the Sobieski Institute, a think tank, noted that a comparison of V AT increases seen in various nations showed that P oles could have it worse. In the UK, for example, V AT increased from 17.5 percent to 20 percent. Greece’s standard rate rose from 11 to 13 percent, while P ortugal’s grew
“[The VAT increase] dampens consumption at a time when consumer spending is crucial” one percentage point hike on medicine (to eight percent) will have an effect on the elderly and infirm. According to an analysis by financial website Money.pl, the new V AT increases will mean the average family pays the government z∏.730 more this year than in 2010.
No great deterrent? There have also been some significant price hikes this January which have nothing to do with
from 21 to 23 percent. Mr Barszcz added that the Polish VAT increase is unlikely to be the direct cause of any significant price increase of everyday goods. And, he said, such price hikes were not in retailers’ interests. “Many companies have already declared no increases of prices. In many cases, prices are set on the ‘marketing level’ and a one percent increase would ruin the marketing effect.” But Mr Barszcz pointed out that further increases were possible if Poland’s public sector debt continues to rise. If that happens, VAT could rise to 24 percent in July 2012. A year later, if the problem isnot resolved, it would increase again, to 25 percent. In this scenario the rate would drop back to 23 percent by January 1, 2016.
Concern for the future The specter of a continually rising VAT rate could become a very real bugbear, according to P awe∏ Sionko, a senior economist at market intelligence firm PMR. In a report published by PMR last year, Mr Sionko emphasized that P oland’s basic VAT rate is already one of the highest in Europe. He said, “A rise in V AT is the simplest way of raising extra revenues for the budget. Although such a move is in
Rating the neighbors International VAT rates on various goods and services in selected EU countries (%)
Source: VATax Reclaim Ltd (www.vatax.net)
According to the Wall Street Journal’s 2011 Index of Economic Freedom, just six of the world’s countries can be described as “free” economies. These six include Hong Kong, Singapore, Australia and New Zealand, as well as Switzerland and Canada. Poland is doing slightly better than it was last year, but remains a dismal 68th out of the list of 179 countries, well behind Oman (34), Armenia (36) and Botswana (40). ●
JANUARY 17-23, 2011
Hotel
Meals
Car rental
Fuel
Taxis
Public transport
Professional fees
Conferences/trade shows
Training/Seminars
Austria
10
10
20
20
10
10
20
20
20
Bulgaria
–
–
–
20
–
–
–
20
–
Czech Republic
10
–
20
20
20/10
20/10
20
20
20
Denmark
25
25
–
25
25/0
25/0
25
25
25
France
5.5
5.5
–
19.6
–
–
19.6
19.6
19.6
Germany
7
19
19
19
19/7
19/7
19
19
19
Hungary
18
–
25
25
–
25
25
25
25
Italy
10
–
20
–
–
–
20
20
20
Lithuania
21
–
–
21
–
21
21
21
21
Netherlands
6
–
19
19
6
6
19
19
19
Poland
–
–
23
–
8
8
23
23
23
Romania
–
–
–
24
–
–
–
24
24
Slovakia
–
–
–
–
–
–
20
20
20
United Kingdom
20
20
20
20
–
–
20
20
20x
COVER STORY
JANUARY 17-23, 2011
line with current European trends, it is not a growth-stimulating measure. It dampens consumption at a time when consumer spending is crucial to putting the Polish economy back on a path of rapid growth. It also hurts business competitiveness.” This is a short-term solution with little chance of achieving its ultimate goal, the report suggested. “Unless the economy accelerates sharply in the following years, the government will be forced to exercise the option of further V AT increases while being unable to avoid spending cuts as well,” Mr Sionko wrote.
Optimistic, for now If the potential downside is that great, why has the government moved ahead with the VAT hike in the first place? Research from P ricewaterhouseCoopers sheds some light on the matter. The report’s authors, Thijs Antenis and Michaela Merz, wrote, “The popularity of the VAT increases can be explained by the fact that it can solve budget squeezes with a minimal amount of political pain. A rise of only one percent can lead to substantial additional tax revenue.” But they too warned that there were dangers inherent in such a “quick fix,” citing a 7.14 percent rise in Romania’s annual inflation after the implementation of a new VAT rate in July 2010. Moreover, they point to the UK’s Office for National Statistics, which admitted that the rise of VAT to 17.5 percent (from 15 percent) at the beginning of 2010 had a major impact on UK inflation. However, neither the BPCC’s Michael Dembinski
nor the Sobieski Institute’s Miros∏aw Barszcz predicted bank-breaking changes as a result of the Polish VAT hike, for either families or firms. “[BPCC] members have not been expressing any great concerns about the rate rise. If
there have been grumbles, they have concerned the procedural adjustments to companies’ invoicing and accounting systems that had to be implemented in time for the New Year,” Mr Dembinski said. “Firms with large numbers of consumer sub-
scribers, such as mobile phone, cable TV operators etc, have had to prepare new contracts incorporating the new VAT rate.” In fact, companies of all sizes have been hit with procedural, rather than financial, headaches. Many have had to update their cash register software, and in some cases simply purchased new devices ahead of the VAT increase. For his part, Mr Barszcz was confident that inflation won’t get out of hand. “[It] is under control. Clearly the VAT increase will adversely influence consumption, but the effects will be barely visible.” In his opinion, this year and next will be good for the Polish economy. “Consumption will continue to grow stably, and we should see a significant increase in investment – both domestic and FDI,” he predicted, adding that the z∏oty will probably appreciate but not to the levels seen in 2006-2007. “This will help exports grow.” According to P oland’s Monetary Policy Council, the national bank’s rate-setting body, the VAT rise is simply a case of doing what’s necessary. It argues that the alternative – debt exceeding 55 percent of GDP, triggering public spending cuts – is far less attractive. The governing party is naturally making the same claims, while the opposition has cried foul, predicting doom and gloom for the poorest members of society. Which group will be vindicated? It’s too soon to say, but there’s plenty of time before the autumn elections for voters to decide whether their pricier food, books and medicine should cost the prime minister his job. ●
Why all the fuss? For every tax ever invented, there’s been someone to argue that it’s unfair, and VAT is no exception. It’s not linked to earnings, so proportionately it is a much heavier burden on the poor than it is on the wealthy, critics point out. VAT is also a largely invisible tax – the pre-tax cost of goods and services aren’t usually listed. Even if the numbers involved are, in the majority of cases, very small, they can quickly add up. And then there’s the threat of further V AT hikes this year or next. In times of economic uncertainty, it is expected that governments take steps to promote stability. Even if these steps are
usually unpopular, they may be palatable if the populace is convinced that there is no alternative. Problems arise when people not only feel that they are footing the bill, but when they believe that others are getting breaks at the same time. Hence the December sit-ins at Marks and Spencer in L ondon, when protesters claimed the company was avoiding (albeit legally) paying millions in taxes when public sector jobs were being slashed in A ugust. Campaigners said big companies paying full tax could save jobs; M&S denied any wrongdoing.
Likewise, last year Greece saw rioting in the streets in response to the government’s austerity measures there. Everyone who makes any purchase in Poland is helping to keep the national debt manageable. Raising revenue is the point of VAT after all, and if it comes to raising taxes a little or cutting services a lot, most governments will choose the former. But the average taxpayer isn’t likely to look at the big picture this way if he or she is struggling to feed, clothe and provide shelter for a family. The government should keep this in mind should the time come to debate future VAT hikes. ●
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Legal Eye
E-invoicing Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl Although I wasn’t too fond of 2010, the new year did not start well. In fact, 2011 bore ill tidings for taxpayers. VAT rates mostly went up and possibilities for deductions went down. Being an optimist, I was determined to find some good news in the packet of changes to corporate income tax and VAT rules that came into effect on January 1. I went to Karolina Stawowska, the head of our tax practice, to ask whether there were any changes that were beneficial to taxpayers. In response, she uttered one word: “e-invoicing.”
Form In what appears to be a lastminute Christmas present to taxpayers, the Finance Ministry issued an ordinance to update the rules on electronic invoicing. Changes introduced by this ordinance have been discussed for a long time, ever since the Finance Ministry’s first (and rather unsuccessful) attempt to permit e-invoicing. You might be surprised to learn that the first ordinance allowing electronic invoicing dates back to 2005. Not using e-invoices in your business? You’re not alone. One of the major changes introduced by the 2010 ordinance is a relaxing of the rigorous authentication rules. In general, for an einvoice to be valid, you must be able to ensure the authenticity of the origin of the invoice (who issued it) and the integrity of its content (no changes to the information on the invoice can occur). To do this, formerly you had to use an advanced digital signature or electronic data interchange protocols. Due to the cost of these methods, they typically only made sense for a large businesses, if at all, and usually were only used for intra-group reconciliations.
The new ordinance refers to both of these methods, but only as examples. Over the course of this year, it will be interesting to watch whether the tax authorities choose to recognize PDF files as being sufficiently secure. If they do, we are likely to see a boom in e-invoicing.
Record-keeping Another major step forward introduced by the ordinance is mixed record-keeping. To date, according to the tax authorities, all those einvoices needed to be printed and stored in paper files. The new ordinance allows a business to keep both e-invoices in an electronic system, on servers in Poland or abroad, and paper invoices in regular paper files. Whether you store einvoices electronically or on paper, you must make sure that your systems maintain their authenticity, integrity and legibility, that they are easy to find, and that they can be made promptly accessible to the tax authorities on demand.
The hitch After hearing all this good news, the more cynical lawyer in me could not refrain from asking “what’s the hitch?” After all, tax authorities generally are not known for pro-taxpayer initiatives. Indeed, there is also something in the new ordinance for the tax authorities. It requires that invoices sent and stored electronically be made available to the tax authorities in a way that allows prompt access and data processing. In other words, if the tax authorities come calling, they will likely expect immediate access to your electronic invoices. The author gratefully acknowledges the assistance of Karolina Stawowska, the head of our tax practice, in preparing this article. ●
Investing in Poland 2011 is available now!
presents
13
We have also launched a new website for investors! For investment news and analysis, visit: www.investinginpoland.wbj.pl
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Water park projects are springing up all over the place
Orbis is moving ahead with a two-hotel project in Warsaw
17
18
LOKALE IMMOBILIA
W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n r e a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t
Sieradz mall under way Construction is entering a new phase on a new shopping center in Sieradz, a town of about 44,000 in ¸ódzkie voivodship. The mall, known simply as Galeria Handlowa in Sieradz, is expected to open for business in Q4. Galeria Handlowa in Sieradz will be the largest retail center in that city, with 10,000 sqm of GLA within a total of 20,000 sqm. A Tesco hypermarket will serve as the anchor tenant and there will be space for around 50 other shops, restaurants and service points. ●
In this issue Vector project permit . . . . . . . .15 Yareal gets funding . . . . . . . . . .15 Budlex’s new project . . . . . . . .16 Land investment . . . . . . . . . . . .16 Equator II’s first tenant . . . . . .16 Property-related stocks . . . . . .16 Water park development . . . . .17 Orbis’ Warsaw project . . . . . . .18 CEE investment in 2010 . . . . . .18
Vector finally gets go-ahead After years of wrangling, IVG Development can build its office project Warsaw City Hall has issued a building permit to IVG Development, giving the German developer a green light to get to work on its V ector office building in the Wola district. “Construction is planned to start in spring 2011 and conclude in the fourth quarter of 2012,” a spokesperson for IVG told Gazeta Wyborcza last week. The issuance of the building permit marks the end of a a difficult saga for IVG, which has been trying to develop Vector for several years now. The firm announced the project back in 2008 and applied for a building permit, but national rail operator P olish State Railways (PKP) lodged a protest. PKP ’s concerns
The Vector building is scheduled for completion in Q4 2012
stemmed from the close proximity of its train tracks to IVG’s plot, located at the
intersection of ul. Obozowa and Al. Prymasa Tysiàclecia. The two firms reached an
agreement last summer, but then the developer ran into difficulties with City Hall,
which had recently completed a new zoning plan for the area in question. According to this zoning plan, construction in the area should be limited to a maximum of 23 meters in height. Vector, meanwhile, is designed to stand 55 meters tall. IVG thus challenged the zoning plan on the grounds that it had only purchased the land after receiving permission to build its project on the site. A new zoning plan, adopted last November, ultimately allowed the German firm to move ahead with its original design. The two-tiered V ector building will deliver approximately 13,000 sqm of leasable office space when completed. Around 500 sqm of service space will be included on the ground floor; tenants from the banking and food-service industries are expected to take EBB, AZ up residence.
Residential
PKO BP to finance Rezydencja Bia∏a
Yareal has secured funding for an underway project in Warsaw Yareal P olska has signed a contract with PKO Bank Polski for the financing of its Rezydencja Bia∏a project in Warsaw. “The signing of the agreement to finance the Rezydencja Bia∏a constitutes a guarantee that the project will be realized according to schedule and clients’ money will be safeguarded. The reliability offered by a Y areal investment is key for our firm,” said Eric Dapoigny, president of Yareal P olska. “T o provide comfort for our clients, we employ financial solutions which ensure their peace of mind while waiting to pick up
the keys to their apartments.” The financial agreement concluded with PK O BP involves a separate dedicated account for the investment. Clients’ money is held on the account for the duration of the project and the bank transfers the money in tranches as construction progresses. According to Y areal, this offers a guarantee which makes it easier for clients to obtain mortgages. Once completed, the sixstorey Rezydencja Bia∏a building will comprise 77 units ranging from 30 to 120 sqm in size. It was designed by the APA Markowski Architekci studio. Completion of the project is scheduled for Q4 2012. Henpol, a construction
Offices to let
COURTESY OF MEDIADEM COMMUNICATION
WSE-listed developer Echo Investment has signed HSBC Bank Poland for its Oxygen office building in Szczecin. The tenant has leased almost 200 sqm of space in the 14,000 sqm project. Located at the intersection of ul. Malczewskiego and Al. Wyzwolenia in the Szczecin downtown, Oxygen was designed by the Gdynia-based Arch-Deco studio. Construction on the building started in September 2008 and last July the facility obtained an occupancy permit.
JANUARY 17-23, 2011, LI 16/02
Office space
COURTESY OF IVG DEVELOPMENT
HSBC in Szczecin’s Oxygen
•
Rezydencja Bia∏a will deliver 77 units firm based in Lublin, is discharging general contractor duties. The firm has been active in the market for more
than 20 years and has realized a number of high-profile projects, such as Nowy Wilanów (itself part of the
Miasteczko W ilanów metainvestment) and Derby Estate in Bia∏o∏´ka. E Blake Berry
LOKALE IMMOBILIA – REAL ESTATE
Dom DevelopmentHochtief deal CB Richard Ellis Polska and DTZ recently represented Warsaw Stock Exchange-listed developer Dom Development in the sale of two plots totaling 3,751 sqm, as well as a historical building located at the intersection of ul. Mazowiecka and ul. Traugutta in central Warsaw, to Hochtief Development Poland. The net value of the transaction amounted to over z∏.95 million.
Brochocki deals in Wroc∏aw
Investment in land to rebound this year Increased activity in the market for plots of land is expected this year, according to a recent report by Colliers International. That expectation is partly founded on the fact that investors were already showing increased activity in the second half of 2010. Moreover, many firms have increased the scope of their interest as far as the type of real estate investments are concerned, looking into new sectors. Joint-ventures have become a more attractive form of investment and new players, including investment funds, have entered the market too,
the research said. Some banks have already started to offer financing on conditions which investors find acceptable. In the residential market, apartment buyers’ creditworthiness has slightly increased, which should lead to further land purchases in the sector. Colliers analysts point out that new office investments can be expected in the W arsaw, Wroc∏aw, Kraków, P oznaƒ and T ri-city markets. Investors are also looking for attractive locations for retail projects in virtually all cities with populations larger than 30,000.
“All seems to indicate that 2011 will be a hot year in terms of new land transactions and launching new residential, office, retail and warehouse projects,” Daniel Puchalski, director of the investment land department at Colliers International, said in a statement. The market is expected to favor buyers over the next few years. Prices in big cities and particular sectors have stabilized and should remain largely unchanged with just small corrections possible, the report posits. Adam Zdrodowski
Selected major land transactions in 2010 City
Area (ha)
Investment potential (sqm)
Type of space
Price (z∏. millions)
Kraków
4.85
70,000
residential-office
83
Warsaw
4.4
60,000
residential-office
70
Gdaƒsk
2.7
45,000
residential
31
Warsaw
1.8
45,000
office
24
Gdynia
1.44 + 2.25
30,000
office-industrial
17
Toruƒ
3.0
10,000
industrial
10 Source: Colliers International
Property-related stocks Security
Closing price on Jan 13
08OCTAVA
2.07
2.99
ATLASEST
3.28
BUDIMEX DOMDEV ECHO
Equator II signs first tenant agreement
Big land deals
Real estate services firm Kancelaria Brochocki recently brokered a number of deals in Wroc∏aw – the total square meterage amounted to 1,650. The largest of the deals was with Solid Security, which leased 1,100 sqm on the city’s ul. ˚migrodzka. In Wroc∏aw’s historical Old Market building, Law firm So∏tysiƒski, Kawecki & Szl´zak took up 200 sqm. ●
% change 52-week (week) low
52-week high
% change (year)
Total shares
Market value (z∏.mln)
1.85
2.50
-17.53
125,843,667
260.50
0.31
2.60
4.83
-0.61
50,322,014
165.06
103.70
1.17
72.00
106.10
32.95
25,530,098
2,647.47
45.50
9.66
38.52
61.00
4.24
24,560,222
1,117.49
4.70
-5.05
3.71
5.40
11.37
420,000,000
1,974.00
ELBUDOWA
169.00
0.00
155.00
188.40
-3.65
4,747,608
802.35
ENERGOPN
14.17
0.00
13.52
17.10
1.94
23,827,044
337.63
ERBUD
57.00
0.88
47.00
61.00
21.28
12,602,711
718.35
GANT
17.10
3.32
15.69
26.00
-19.72
20,499,953
350.55
GTC
24.50
0.62
20.25
25.19
-2.23
219,372,990
5,374.64
HBPOLSKA
3.00
-1.32
2.98
4.06
-18.92
210,558,445
631.68
JWCONSTR
15.08
-2.71
11.06
18.69
23.71
54,073,280
815.43
LCCORP
1.50
1.35
1.37
1.73
-2.60
447,558,311
671.34
MARVIPOL
10.18
-1.64
10.16
22.31
-36.38
36,923,400
375.88
MOSTALWAR
58.35
-1.60
58.35
77.00
-7.16
20,000,000
1,167.00
MOSTALZAB
2.88
-3.03
2.79
4.84
-34.55
149,130,538
429.50
NAFTA
23.17
0.00
22.22
31.79
0.74
5,903,203
136.78
ORCOGROUP
28.16
1.51
19.00
33.50
-2.39
14,053,866
395.76
PANOVA
32.40
4.89
24.10
37.69
40.02
8,000,000
259.20
PBG
209.50
0.72
192.00
252.00
-1.13
14,295,000
2,994.80
PLAZACNTR
4.41
-9.63
4.41
6.67
-34.18
292,647,720
1,290.58
POLAQUA
17.75
0.51
14.94
22.50
-1.39
27,500,100
488.13
POLIMEXMS
3.90
-2.74
3.90
5.29
-6.92
520,918,203
2,031.58
POLNORD
32.45
0.78
30.10
44.00
-4.56
22,218,386
720.99
PROCHEM
25.80
0.19
19.90
26.50
15.38
3,895,000
100.49
RONSON
1.45
-1.36
1.36
2.10
-15.20
272,360,000
394.92
TRAKCJA
3.99
-1.48
3.84
4.97
-2.68
160,105,480
638.82
ULMA
80.20
-0.62
70.00
87.95
-8.81
5,255,632
421.50
UNIBEP
10.00
0.00
5.72
10.30
81.82
33,927,184
339.27
WARIMPEX
9.65
-2.03
7.64
10.30
9.29
54,000,000
521.10
JANUARY 17-23, 2011
Equator II is scheduled for completion in October Karimpol Group, developer of the Equator office complex in Warsaw, has signed its first pre-lease agreement for the Equator II building. The real estate group launched construction on the building in 2010 without any leases signed. “This unusual step on the Warsaw and wider CEE market represented our growing level of confidence in market conditions into 2011 and beyond,” Martin P rokes, a representative of Karimpol Group, said in a statement. “Currently we have signed a pre-lease agreement for 6,000 sqm, which proves that our predictions regarding the office market environment have been accurate.”
The name of the new tenant has not been revealed. The Equator II building will bring 21,000 sqm of classA office space to the market upon completion, which is scheduled for October of this year. Equator II is located on Al. Jerozolimskie in the capital. In addition to office space, it will comprise retail space on the ground floor and a fourlevel underground parking facility. Zenith R eal, a subsidiary of Karimpol Group, is directly responsible for the development. PORR is serving as general contractor while Jones Lang LaSalle is the exclusive leasing agent for the project. E Blake Berry
Budlex prepares for large residential project Budlex, a wholly owned subsidiary of construction group Erbud, is launching a new large-scale housing development in Bydgoszcz, KujawskoPomorskie voivodship. The company plans to bring 25,000 sqm of residential space, or approximately 500 apartments, to the market. The still-unnamed investment has been valued at z∏.130 million. A special purpose vehicle called Budlex P estalozziego will be directly responsible for the project. It is currently in
the process of purchasing perpetual usufruct rights to a number of plots located along ul. Pestalozziego in Bydgoszcz. The size of the first of these plots amounts to 7,300 sqm and Budlex Pestalozziego has agreed to purchase the rights to it for z∏.4.4 million. The deal will be finalized on February 8, provided that Bydgoszcz City Hall does not exercise its right of pre-emption. At the same time, the firm has signed an initial agreement for the acquisition of perpetual usufruct rights to a
Few buyers for PKP properties last year Polskie Koleje P aƒstwowe (PKP), the main railway operator in Poland, was keen to sell some z∏.477 million worth of real estate last year, but that level of demand just wasn’t there. According to Rzeczpospolita, the company was only able to sell some z∏.94 million worth of properties and deals worth another z∏.27 million are
COURTESY OF PKP
www.wbj.pl
COURTESY OF JONES LANG LASALLE
16
still waiting to be signed. Analysts say that makes 2010 one of the worst years for the company in terms of real estate sales. The company plans to sell more vacant lots and subsidiary firms this year, the total value of which is estimated at z∏.280.5 million. The proceeds from the sales are expected to go towards paying off debts. ●
number of neighboring plots, the total area of which amounts to 18,800 sqm. This contract is valued at z∏.10.9 million. Should City Hall choose to purchase the 7,300 sqm property, Budlex Pestalozziego has reserved the right to exit this second contract. Details remain limited, but the company expects to see its first revenues from this investment at the turn of 2012/2013. Completion is currently scheduled for 2017. E Blake Berry
JANUARY 17-23, 2011
LOKALE IMMOBILIA – REAL ESTATE
Water parks
An increasingly liquid market
Entertainment facilities featuring pools and water slides are making a big splash in Poland A veritable wave of investment is rising in a niche market in Poland – water park projects. As the P olish market has matured and purchasing power has risen (albeit slowly), Poles have demonstrated an increasing will to splash out on the kind of entertainment offered by such facilities. Over the next few years a total of more than z∏.1 billion is expected to be spent developing water parks. Most of these will be realized by local authorities, which generally perceive the schemes as reliable sources of stable income as well as a way to keep their citizens cool in the summer heat. Large water park projects located just across the border in Germany (Tropical Islands Resort near Berlin) and in Lithuania (Vandens Parkas in Druskininkai) have proven highly popular with P olish swimming fans. And ventures competing with these foreign giants have begun emerging inside Poland too. The largest existing water park developments in P oland now include P ark W odny w Krakowie in Kraków (with pools spread across 3,500 sqm), Aquapark Fala in ¸ódê (2,450 sqm), Basen Kàpielowy w Andrychowie in Andrychów (2,400 sqm), Ma∏opolskie voivodship and W roc∏awski Park Wodny in Wroc∏aw (2,365 sqm). According to data from
Wroc∏awski P ark W odny, which opened in F ebruary 2008 and cost more than z∏.139 million to develop, the facility is visited each month by an average 87,500 people and brings in average monthly revenues of z∏.2 million. While total revenues for 2008 amounted to z∏.15 million, by the end of 2009 they had already increased to z∏.21 million. “These days, in times of a still ongoing crisis, many people give up on holiday travels and treat water parks as a substitute of kinds – herein lie the chances for the growth of water parks as well as broadly understood amusement parks,” said Bart∏omiej Andrusiewicz, president of W roc∏awski P ark Wodny, which is owned by the City of Wroc∏aw.
Whetting appetites for profit Others hope to replicate that success. New water park projects opened last year in Zielona Góra and R adom, Lubuskie and Mazowieckie voivodships, respectively. In the latter case, the park is part of a larger private investment, the multi-functional Centrum S∏oneczne project which AIG/Lincoln Polska is realizing in the city. Construction is now underway or is scheduled to begin on new water parks in cities such as Poznaƒ, Kalisz, Bydgoszcz, Ruda Âlàska, Gostynin, S∏upsk, Lidzbark W arminski and Elblàg. The z∏.300 million Termy Maltaƒskie scheme in Poznaƒ, for example, is expected to become one of the largest projects of its kind in Poland. It
COURTESY OF MG NETWORK
Adam Zdrodowski
Wroc∏awski Park Wodny turned on the taps in 2008 is scheduled to open this summer. “Access to modern sports and recreation facilities, as well as their diversity and high standard, have recently become an indicator of the quality of life.
“Many people give up on holiday travels and treat water parks as a substitute of kinds” We believe that the comprehensive and complementary [services offered by] T ermy Maltaƒskie, combined with an exquisite location, are the key to appealing to a broad public,” said Magdalena Weso∏owska, president of the scheme’s management board.
Continuous stream of investment According to Mr Andrusiewicz of W roc∏awski P ark W odny, water park construction has become fashionable and many cities, large and small alike, will soon see new projects of this kind. Those with the greatest chances of success, he stressed, will have facilities featuring the most modern infrastructure and located in city centers. “Only those parks which systematically introduce new attractions and thus avoid ‘burnout syndrome’ have a chance of success. T oday’s water and amusement parks are modern computerized undertakings managed by professionals and using 21 stcentury technology which have nothing to do with the swimming pools and Luna
Parks [fun fairs] of bygone days,” Mr Andrusiewicz said. His own facility, which touts itself as “the best water park in P oland,” recently opened a new “multi-media water slide” involving lights, sounds, curtains of water and transparent sections. Other projects in W roc∏awski P ark Wodny’s pipeline include a complex of saunas as well as a 200-bed hotel with a conference center. The former project is scheduled for completion by the end of the year while the latter is currently in the preparation phase. New water park investments are on the way and existing facilities are expanding ambitiously, but demand is also strong. By the looks of it, the market won’t reach saturation point for some time to come. ●
www.wbj.pl
17
Gemini Bielsko-Bia∏a expanding Kraków-based developer Gemini Holdings has decided to expand its Gemini Park Bielsko-Bia∏a shopping and entertainment center. The company is currently in the process of preparing an investment which would add an additional 16,500 sqm of GLA to the scheme. Construction could begin in the second half of 2011. Gemini Park Bielsko-Bia∏a, which opened in May 2009, currently totals 32,000 sqm and hosts more than 80 stores and points of service. Tenants include Cinema City, H&M, C&A, New Yorker, S. Oliver, Reserved, House, Mohito, Solar and Ry∏ko.
New tenant in Blue Center RTV Euro AGD, a retail chain specializing in white goods and electronics, has become the latest tenant in ˚yrardów’s Blue Center shopping mall. The firm will take up 490 sqm. Blue Center comprises a total of around 5,500 sqm of space. It hosts around 25 shops, restaurants and points of service. Other tenants in the center include POLOMarket, CCC and Tabak. WBWK Architekci designed the shopping center with modern architectural concepts in mind and modern finishing materials were employed in finishing work. ●
18
www.wbj.pl
Goodman secures Kraków client Industrial and business space developer Goodman Group has signed Eurodruk-Kraków for its Kraków Airport Logistics Centre project in Ma∏opolskie voivodship. The latter company has leased 3,500 sqm of warehouse and 366 sqm of office space in the scheme, respectively. Construction work on Kraków Airport Logistics Centre commenced last May with Skalski as the general contractor for the project.
Rittal in Tulipan Park Power distribution systems, cooling solutions and IT infrastructure provider Rittal has leased nearly 3,300 sqm of space in Segro’s Tulipan Park Stryków logistics complex in central Poland. The agreement has been signed for a five-year period. Tulipan Park Stryków is Segro’s largest project in Central Europe. ●
LOKALE IMMOBILIA – REAL ESTATE Regional investment
JANUARY 17-23, 2011
Hotels
CEE investment rises sharply Orbis relaunches Investment in the Warsaw project region rose by 90 percent last year
Real estate investment turnover in the Central and Eastern Europe region amounted to €5 billion last year, according to figures from CB Richard Ellis. That’s up 90 percent, compared to the total seen in 2009. Investment volume in Poland alone amounted to €1.79 billion. “[The year 2010] marked the return of interest in portfolios and large single assets in the CEE real estate market. Around 45 percent of all property investment in the region related to €100 million-plus deals,” P atrick O’Gorman, capital markets director CEE at CBRE, said in a statement. Poland and R ussia dominated investment activity throughout the year, accounting for a whopping 74 percent of total turnover. UnibailRodamco’s over €400-million acquisition of the Arkadia and W ileƒska shopping centers in Warsaw was the single largest retail transaction in the region last year. Of the two markets,
Poland saw an overall higher volume until the fourth quarter, when L enmar Capital spent €690 to purchase a portfolio of five office buildings in Moscow, totaling around 190,000 sqm of space. Around 46 percent of total volume last year involved office-sector deals, the highest percentage seen in five years, according to CBRE. The firm attributed this to a squeeze of top-grade supply. Notable trends in 2010 included limited activity by German open-ended funds and prime yield compression in most markets in the region,
“across all major commercial sectors.” Notably, a prime yield gap of 50 basis points is seen between the Warsaw and Prague markets, reflecting the former’s greater liquidity. “The past year offered proof of the increasingly stable situation in P oland and the region,” Mr O’Gorman commented. And what trends can we expect for this year? According to CBRE’s capital markets director CEE, “In 2011 we expect that the largest investment funds will decide about further investments in our region.” EBB
A new leaf turned over CEE real estate investment turnover, 2009-2010
2009
2010
2,000 1,600 1,200 800 400 € mln Russia
Poland
Czech Republic
Romania
Hungary
Other CEE
Source: CB Richard Ellis
Building in Kraków, however, will remain frozen for the time being
The Orbis hotel group announced last week that it will resume construction on its Ibis and Etap hotel project in Warsaw. “Orbis is planning to build a two-hotel project of Ibis and Etap with more than 300 rooms. This project had been frozen in the starting phase back in 2009,” said Orbis vice president, Ireneusz W´g∏owski. He said that construction will now be relaunched in January or F ebruary 2011 and that the hotels will be opened by mid-2012, in time for the Euro 2012 soccer championships. “This two-hotel [Warsaw] project shows Orbis’ commitment to focus on the development of the economy segment hotels. Currently, there are 10 Ibises and eight Etaps which constitute 30 percent of Orbis Hotel Group’s portfolio in Poland,” said Orbis CEO L aurent Picheral.
The company hopes one day to add to this tally by resuming construction on its Ibis and Etap hotels in Kraków. These investments were halted at an advanced stage and each needs only half a year to be completed, but the Kraków market is still proving relatively sluggish. “There is as yet no decision on re-launching the frozen two-hotel project of Ibis and Etap in Kraków. ... Kraków’s hospitality market is slowly improving, but not with the pace of W arsaw,” Mr W´g∏owski said. “If Orbis analyses show a solid base for growth in Kraków, then this project is going to be restarted,” he added. The hotel group is currently reorganizing the structure of its assets and is planning to sell a number of vacant buildings. It recently sold the P olan Hotel building in Zielona Góra and the surrounding land. The value of the transaction has not been disclosed. Gareth Price
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MARKETS
JANUARY 17-23, 2011
www.wbj.pl
world stock indices DJIA
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11,717.25 (Jan 13 close) 0.23% (for the week)
Stocks report
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FTSE100
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DAX
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A split market
NIKKEI225 7,068.02 (Jan 13 close)
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(year to Jan 13)
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(year to Jan 13)
(year to Jan 13)
(year to Jan 13)
(year to Jan 13)
52-week high: 11,814.50
52-week high: 2,742.43
52-week high: 1,286.87
52-week high: 6,090.50
52-week high: 7,087.84
52-week high: 11,408.20
52-week low: 9,596.04
52-week low: 2,061.14
52-week low: 1,010.91
52-week low: 4,790.00
52-week low: 5,433.02
52-week low: 8,807.41
Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks finished in positive territory last week, but I have mixed feelings about the state of the market. Some companies rose nearly vertically, but many companies set new 52 week lows. Chemicals stocks were true darlings of investors and the WIG-Chemia index skyrocketed by more than 15 percent on the week. It’s hard to see proper reasons, but chemical stocks were definitely the best performing sector on the WSE – the WIG-Chemia gained 61 percent in 2010. Both the WIG and WIG20 indices rose just shy of 0.9 percent last week, and commodities stocks were top picks among blue chips. KGHM surged by nearly eight percent, and the company set a new all-time high at z∏.181.70. Its shares were
Major indices WIG
47,447.03 (January 13 closure)
WIG20
2,725.48 (January 13 closure)
13.01
12.01
11.01
10.01
07.01
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
13.01
12.01
11.01
10.01
07.01
05.01
04.01
03.01
31.12
2,600
30.12
46,000
29.12
2,640 28.12
46,600 27.12
2,680
23.12
47,200
22.12
2,720
21.12
47,800
20.12
2,760
17.11
48,400
16.12
2,800
15.12
49,000
23.12
52-week low: 2,173.25
22.12
Change year to January 13: -1.06%
21.12
52-week low: 37,322.52
20.12
52-week high: 2,787.09
Change year to January 13: -0.42%
17.11
Change for the week: 0.74%
16.12
52-week high: 48,004.74
15.12
Change for the week: 0.79%
Top 5 IRENA MEDIATEL VISTULA CORMAY POLICE
Closing 1.08 10.55 2.44 7.86 9.80
% change (week) 52-week high 40.26 5.35 22.82 14.70 20.79 3.23 18.55 7.95 17.93 9.80
52-week low 0.65 7.80 2.00 3.69 4.60
Top 5 KGHM PKNORLEN LOTOS GETIN CEZ
Closing 180.00 47.64 37.65 11.85 131.40
% change (week) 8.11 5.42 3.46 3.04 2.82
52-week high 181.70 49.00 37.85 11.85 148.80
52-week low 85.60 31.05 25.52 8.75 118.70
Bottom 5 ORZEL TECHMEX CELTIC HELIO PLAZACNTR
Closing 0.05 0.38 21.48 20.98 4.41
% change (week) -66.67 -17.39 -10.43 -10.15 -9.63
52-week low 0.05 0.27 20.61 10.60 4.41
Bottom 5 PEKAO CYFRPOLSAT TPSA PZU PGNIG
Closing 170.40 15.40 16.28 341.00 3.48
% change (week) -4.27 -4.05 -2.86 -2.85 -2.79
52-week high 196.50 15.78 18.65 417.50 3.91
52-week low 148.30 10.61 14.10 326.00 3.16
52-week high 2.47 2.30 72.00 26.60 6.64
2,841.68 (January 13 closure)
sWIG80
Rate hike speculation
12,430.48 (January 13 closure)
NewConnect
61.41 (January 13 closure)
WIG-Banki
6,673.95 (January 13 closure)
SOURCE: WSE
13.01
12.01
11.01
10.01
07.01
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
13.01
12.01
11.01
10.01
07.01
05.01
04.01
03.01
31.12
30.12
6,600
29.12
61.0
28.12
6,720
27.12
61.8
23.12
6,840
22.12
62.6
21.12
6,960
20.12
63.4
17.11
7,080
16.12
64.2
15.12
7,200
23.12
52-week low: 5,440.90
22.12
Change year to January 13: -4.14%
21.12
52-week low: 52.17
20.12
52-week high: 7,262.73
Change year to January 13: -3.15%
17.11
Change for the week: -1.67%
16.12
52-week high: 64.07
15.12
Change for the week: -1.99%
65.0
Adam Narczewski, X-Trade Brokers Dom Maklerski SA
13.01
12.01
11.01
10.01
07.01
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
13.01
12.01
11.01
10.01
07.01
05.01
04.01
03.01
31.12
11,900
30.12
2,700
29.12
12,020 28.12
2,740
27.12
12,140
23.12
2,780
22.12
12,260
21.12
2,820
20.12
12,380
17.11
2,860
16.12
12,500
15.12
2,900
23.12
52-week low: 10,980.45
22.12
Change year to January 13: 1.48%
21.12
52-week low: 2,213.51
20.12
52-week high: 12,627.87
Change year to January 13: 1.21%
17.11
Change for the week: 1.60%
16.12
52-week high: 2,844.64
15.12
Change for the week: 0.86%
upgraded to buy at z∏.202 with a 12 month target set by one broker. Oil companies were also strong and L otos was top pick among them, rising to a multi-month high at z∏.38.34. On the other hand, telecom TP plunged by nearly 6.5 percent following more legal troubles with former business partner DPTG. TP said the matter wouldn’t impact on its dividend policy, but investors preferred to sell. Financial stocks were also under some selling pressure, probably because of anticipation of a rate hike announcement next week. For sure it was a fantastic week for chemical stocks shareholders and those of a few other stocks, such as Eurocash or Cormay, but not all segments of the market looked good. ●
Currency report
Other indices mWIG40
19
The second week of January brought with it further increases on US stock markets and a rebound for the EUR/USD. The main currency pair recovered from a three-month low of $1.28 and climbed to reach $1.33 due to successful bond auctions in Portugal, Spain and Italy. The euro zone’s problems have not been resolved yet, but investors aren’t expecting a full-blown crisis any time soon. The z∏oty’s recent movements can be linked to emanations from within P oland. While the strengthening euro has certainly helped the Polish currency, recent gains have mainly resulted from hawkish statements made by members of Poland’s rate setting Monetary Policy Council and others. Last week the head of the
National Bank of P oland declared that a stronger z∏oty is needed. International institutions also expect the z∏oty to appreciate, indicating the potential of the local economy. Moreover, December inflation was in line with expectations, at 3.1 percent, proving that P oland is on a path of growth. Taking into account all the facts, the Monetary P olicy Council will likely not wait with its decision to hike interest rates and we can expect a decision (involving a 25-50 basis point increase) during their next meeting this month. Over the course of last week, the EUR/PLN declined from z∏.3.90 to z∏.3.87 (with its weekly low at z∏.3.82), while the USD/PLN tumbled all the way to z∏.2.90 from last Monday’s weekly high of z∏.3.03. ●
currency rates 3.5370
3.5065
13.01
14.01
SOURCE: NBP
3.5478
11.01
12.01
3.6379
3.6155
10.01
14.01
13.01
12.01
11.01
10.01
3.5
07.01
3.5704
0.0968
0.0975
0.0971
0.0981
0.0962 07.01
0.08
PLN-100JPY
4.0
3.0158 14.01
3.0159
0.0971
PLN-RUB
0.10
13.01
3.0319 12.01
3.0981 11.01
10.01
3.0948 07.01
4.6215
4.6005 14.01
3.0
3.1348
PLN-CHF
3.5
13.01
4.6130 12.01
4.6687 11.01
10.01
4.6082 07.01
2.9353
14.01 2.9048
4
4.6934
PLN-GBP
5
13.01
2.9466 12.01
3.0065 11.01
10.01
2.5
07.01
2.9818
3.8833 14.01
3.8613
3.0
3.0268
PLN-USD
3.5
13.01
3.8403 12.01
3.8858 11.01
10.01
3.8730 07.01
3.5
3.9082
PLN-EUR
4.0
20
THE LIST
www.wbj.pl
Book of Lists
JANUARY 17-23, 2011
Book of Lists is a comprehensive, detailed and constantly updated guide to more than 2,000 companies operating in the Polish market. Key enterprises are divided by sector into more than 65 ranking lists that include information such as the names of top managers , major clients, activities, the number of employees, completed projects and full contact details . This week’s edition examines catering companies. For more information about Book of Lists contact Joanna Raszka, tel. 22 639–8567 ext. 119; jraszka@valkea.com
Catering Companies Ranked by revenue from catering in 2009
Banquets with wait staff / Mass events
Buffet / Bar / Smorgasbord
Type of cuisine
Total number of catering employees / Full-time employees/ Year founded
Chef
Sodexo Polska Sp. z o.o. Al. Jerozolimskie 172, 02-486 Warsaw 1 22 338-9600/22 338-9601 info.fms.pl@sodexo.com www.sodexo.pl
WND 77.1 88.2 82.0
WND 188.2 180.7 161.0
Valeo (Christmas Eve, New Year Meeting): 700, 900; ITM (Prestige Filters of tomorrow”): 450; Ustra, Philips, Makro (Christmas Eve): 500, 1,500, 200
✓ ✓ ✓
✓ ✓
✓ ✓ ✓
All types of cuisine
Full-service: employee restaurants; business banquets and conference organization; meals to go; lunch delivery; vending; patients’ nutrition
877 877 1993
WND
Yann Gontard
Eurest Poland Sp. z o.o. (1) ul. Jana Olbrachta 94, 01-102 Warsaw 2 22 463-4400/22 463-4444 eurest.poland@eurest.pl www.eurest.pl
38.0 76.0 73.0 60.0
38.0 76.0 73.0 60.0
Shell Polska, Sharp Manufacturing, JTI Polska (Christmas Eve): 1,000, 100, 400
✓ ✓ ✓
✓ ✓
✓ ✓
Polish; regional; International; theme
Facility management
934 835 1993
WND
Robert Modzelewski
3 71 780-9450/71 780-9511
WND 45.0 45.7 54.3
WND WND WND WND
Wy˝sza Szko∏a Bankowa in Wroc∏aw (catering service for trainings): 4,732; Symposion (congress): WND; West Chamber of Commerce (business gala): 400; Prowokator advertising agency (catering service): 300
✓ ✓ ✓
✓ ✓
✓ ✓ ✓
WND
Buffet service; party organization; preparation and delivery of food baskets for special occasions
460 460 2000
WND
Marek Ho∏ówko
Hotel Mazurkas & MCC Mazurkas Conference Centre ul. Poznaƒska 177, 4 05-850 O˝arów Mazowiecki 22 721-4747/22 721-4751 kontakt@mazurkashotel.pl www.mazurkashotel.pl
8.5 15.0 15.0 13.0
WND WND WND WND
EAACI (allergists’ congress): 6,000; EuroSpine Congress: 3,000; CISCO: 1,100; Vatenfall: 1,390; PSEW (wind energy congress): 650
✓ ✓ -
✓ ✓
✓ ✓ ✓
Polish; Mediterranean; French
Sound; lighting attractions
95 80 2001
Bart∏omiej Czerwiƒski
Andrzej Bartkowski
Bon Appetit Catering Sp. z o.o. ul. Gra˝yny 13, 02-548 Warsaw 5 22 762-4230/22 762-4229 biuro@catering-bonappetit.com.pl www.catering-bonappetit.com.pl
5.0 8.0 7.0 6.0
5.0 8.0 7.0 6.0
Medical conference: 400; Coca-Cola HBC (Christmas Eve): 628; Family picnic: 350; Forbes and Newsweek conference: 300; POL-MOT Auto banquet: 350
✓ ✓ ✓
✓ ✓
✓ ✓
Polish; Asian; Mediterranean; Balkan; regional
Receptions
101 84 1992
Adam Kamiƒski
Jacek Goszczyƒski
Party Serwis Catering Melon Sp. j. ul. Mineralna 20, 02-274 Warsaw 6 22 644-2811/22 644-7025 biuro@partyserwis.pl www.partyserwis.pl
2.8 4.5 4.2 3.9
WND WND WND WND
Paszporty Polityki: 2,000; Warsaw University of Technology (congress): 4,000; AVON (congress): 2,800; SMG/KRC 20 th anniversary: 1,000; Trade Trans 20th anniversary: 1,500
✓ ✓ ✓
✓ ✓
✓ ✓ ✓
International; European
Tents; art direction; photography
150 30 1992
Dariusz Oleszczuk
Jan Melon
Art’Impression Catering Sp. z o.o. ul. Karczunkowska 170, 02-871 Warsaw 7 22 736-2711/22 736-2712 events@ai-catering.pl www.ai-catering.pl
2.5 4.0 3.6 2.7
WND WND WND WND
Special Olimpics: 3,000; Polkomtel (picnic): 1,000; Medical University of Warsaw (ball): 900; Warsaw University of Technology Karnavauli (ball): 800; Medical University of Warsaw (conference): 700
✓ ✓ ✓
✓ ✓
✓ ✓ ✓
Polish; European; International
Arrangements; equipment; technical service; photography
80 40 2004
Barbara St´piƒska
Wies∏aw Spodarzewski
Agencja Cateringowa Party Sp. z o.o. ul. Rakowiecka 36, 02-532 Warsaw 8 22 849-8597/22 849-8597 party@party.com.pl www.party.com.pl
1.1 2.5 2.9 2.3
1.1 2.5 2.9 2.3
The Senate of the Republic of Poland (20th anniversary): 600; Boeing International Corporation (international strategic meeting): 350; Building Research Institute (picnic): 350; international meeting for diplomatic corps and expats living in Poland: 300; STRABAG (opening of new office): 200
✓ -
✓ ✓
✓ ✓ ✓
Polish; French; Italian; Finnish; fusion; other upon request
Organization and service of: banquets; cocktail parties; conferences; events; anniversaries; unconventional weddings; picnics; children parties
81 18 1992
Robert Kaêmierczak
Ludwika Makowiec; El˝bieta Zielonka
0.8 2.3 4.5 WND
0.8 2.3 4.5 WND
Konfederacja Pracodawców Polskich: 1,700; Ernst & Young (Expo XXI): 350; Sigma International: 200; Gaz-System (Christmas Eve): 330; Sotano Dance Club: 150
✓ ✓ -
✓ ✓
✓ ✓ ✓
International
Interior design; leasing of gastronomic equipment; waiter services
WND 12 1991
Bogdan Niemiec
Lucyna Zapart
RSVP Kalinowski, Wysocki-Kalinowski Sp. j. ul. Laskowa 18, 05-420 Józefów 10 22 773-7253/22 207-2087 info@rsvpcatering.pl www.rsvpcatering.pl
1.0 1.2 1.2 1.0
1.0 1.2 1.2 1.0
PTO-EXPO (congress):1,800; XVII Locomotive Parade: 500; Warsaw University (graduation): 700; the biggest parachute party in Europe: 250; Suzuki (open days): 1,800
✓ ✓
✓ ✓
✓ ✓ ✓
Polish with international accents; upon request
Leasing of equipement; photography; site arrangement; parties coordination; wedding agency
22 5 2002
Artur Pràtnicki
Tomasz WysockiKalinowski; Jacek Kalinowski
Restauracja Dom Polski ul. Francuska 11, 03-906 Warsaw 11 22 616-2432/22 616-2488 restauracjadompolski@wp.pl www.restauracjadompolski.pl
WND 0.2 0.2 0.4
WND WND WND WND
Saska K´pa festival: WND
✓ ✓ WND
✓ ✓
✓ ✓ ✓
Polish and upon request
WND
25 35 1998
Katarzyna Wasilewska
Miros∏aw Wasilewski
Agencja HeWo Henryk åwik∏a ul. Powstaƒców Wielkopolskich 6, 62-002 Suchy Las near Poznaƒ 11 61 812-5071/61 812-5071 hewo@hewo.pl www.hewo.pl
0.1 0.2 0.2 0.2
WND WND WND WND
MPK Poznaƒ (130th anniversary): 500
✓ WND WND
✓ ✓
✓ ✓ ✓
European with worldwide elements
Full-service; artistic arrangement; scene; lighting; sound; tents; survival; script; media
30 5 1989
Robert Buchwald
Henryk åwik∏a
WND WND WND WND
WND WND WND WND
EuroBasket (European basketball championship): 5,500; Poland-Czech Republic match (European Rugby championship): 5,500; Government Protection Bureau (shooting competition): 1,000; Deutsche Bank-ProAmTour (golf tournament): 600; Teatr 6 pi´tro (opening): 600
✓ WND WND
✓ ✓
✓ ✓ ✓
International
Complex organization of events; gastronomic equipment; tents; technical service; artistic setting; waiter and chef service
WND WND 2000
Grzegorz Dudek
Bartosz Siekierka
Rank
Company activity: Catering / Restaurant / Canteen operator
Types of events served: Company name Address Tel./Fax E-mail Web page
Revenue from catering (z∏. mln)
Total revenue (z∏. mln)
Largest events catered (2009-2010): Number of participants
Other services offered
1st half of 2010 / 2009 / 2008 / 2007
Impel Catering Sp. z o.o. ul. Âl´˝na 118, 53-111 Wroc∏aw impelcatering@impel.pl www.impelcatering.pl
L. Zapart Catering S. C. Ludwika Zapart, Piotr Jurek-Krzy˝ewski ul. Krasiƒskiego 10, 01-615 Warsaw 9 22 839-8795/22 839-8795 biuro@zapart.pl www.zapart.pl
Siekierka Catering Bartosz Siekierka Al. Stanów Zjednoczonych 63, 04-028 Warsaw NR 22 435-9494/22 435-9495 biuro@siekierka.pl www.siekierkacatering.pl
Top local executive / Title
Managing Director
Managing Director
President
WND
President
WND
President
Board Members
WND
WND
WND
Owner
WND
THE LIST
JANUARY 17-23, 2011
www.wbj.pl
21
around 100 WND 1991
Micha∏ Tkaczyk
Michael Goerdt
38 18 2010
Piotr Mielcarz
Emanuele Dalnodar; Roberto Guastalla
Type of cuisine
Le Meridien Bristol Sp. z o.o. Krakowskie PrzedmieÊcie 42/44, 00-325 Warsaw NR 22 551-1000/22 625-2577 bristol@lemeridien.com www.lemeridien.pl
WND WND 7.4 WND
WND WND WND WND
Boom, Citibank, Cushman and Wakefield: WND
✓ ✓ WND
✓ -
✓ ✓ ✓
International; Polish
CASA ITALIA Sp. z o.o. ul. Âwi´tojerska 5/7, 00-236 Warsaw NR 22 860-0255/22 860-0255 info@de-signed.pl www.de-signed.pl
WND NA NA NA
WND NA NA NA
Warsaw Business Journal (Business Casual Night): 120; Instytut Wzornictwa Przemys∏owego (“Dwie klawiatury” finals): 200; UseLab: 150
✓ ✓ -
✓ ✓
✓ ✓ ✓
Belvedere – Café ¸azienki Królewskie Sp. z o.o. ul. Agrykoli 1, 00-460 Warsaw NR 22 558-6700/22 558-6777 catering@belvedere.com.pl www.belvedere.com.pl
WND WND WND 12.0
WND WND WND 12.0
Debutants’ Ball: 600; Arabian Horse Days: 1,500; MT Polska (congress): 2,500
✓ ✓ -
✓ ✓
✓ ✓ ✓
Polish; International; Oriental; fusion upon request
New design; own catering equipment; complex service
85 25 1991
Dariusz Muçko
Artur Zymerman
GOÂCINIEC OYCOWIZNA ul. S∏oneczna 241, 05-506 Leszno Wola/Magdalenka NR 22 713-8992/22 713-8992 kontakt@oycowizna.pl www.oycowizna.pl
WND WND WND NA
WND WND WND NA
Business Centre Club (Summer Gala): 4,000; Twój Styl (Doskonoa∏oÊç Mody”): 600; DNT Printing House (60th anniversary): 200; Mans Day: 8,000; PKP (internal event): 300 “
✓ ✓ -
✓ ✓
✓ ✓ ✓
Polish and Mediterranean; other upon request (Greek, Italian, Hungarian, Russian, vegetarian cuisine)
Restaurant; sales of own products from the oven and smokehouse; cooking school; weddings; events; conferences; children’s events; hotel
72 32 2008
Lech Bodzon
Jacek Gralik
IMPRESSA EVENT PARTNER Biuro Organizacji Imprez Specjalnych ul. Ogrodowa 21F, NR 05-509 Józefos∏aw, Piaseczno 22 626-8920/22 626-8920 impressa@impressa.com.pl www.impressa.com.pl
WND WND WND WND
WND WND WND WND
Citroen Polska, LOT, Velux, IGEOÂ, Socopol: WND
✓ WND WND
✓ ✓
✓ ✓ ✓
WND
All types of parties: conferences, trainings, fairs; art direction; technical service; DJ; tents
WND WND 1995
WND
Katarzyna NowocinKowalczyk
Kr´gliccy Restauracje i Catering ul. Foksal 17, 00-099 Warsaw NR 22 826-0109/22 826-0109 restauracje@kregliccy.pl www.kregliccy.pl
WND WND WND WND
WND WND WND WND
European Parliament (congress): 1,200; Platforma Obywatelska (congress): 1,000; President Bronis∏aw Komorowski (election evening): 1,500; RP Honorary Consuls (first congress): 400; Pricewaterhouse Coopers: 350; Toyota, Lexus: 600; Mercedes: 400
✓ ✓ -
✓ ✓
✓ ✓ ✓
All types of cuisine
WND
200 120 1988
WND
WND
La Boheme Sp. z o.o. Pl. Teatralny 3, 02-382 Warsaw NR 22 692-0681/22 828-0769 m.hernik@laboheme-catering.pl www.laboheme.com.pl
WND WND WND WND
WND WND WND WND
Carlsberg (dinner): 1,200; TVP (banquet): 300; Netia (congress): 1,200; Office of the president of RP (banquet): 1,000; Office of the president of RP (gala, 90 th anniversary of Independence): 850
✓ ✓ WND
✓ ✓
✓ ✓ ✓
International
-
20 20 2008
Marcin Kopec; Pawe∏ Gajownik
Grzegorz Biskupski
O5 Sp. z o.o. ul. Wybrze˝e Gdyƒskie 4, 01-531 Warsaw NR 22 560-3733/22 637-1502 ask@moonsfera.pl www.moonsfera.pl
WND WND WND WND
WND WND WND WND
Polski Komitet Olimpijski, Colgate-Palmolive, Ekstraklasa, Roche, Pl 2012: WND
✓ ✓ -
✓ ✓
✓ ✓ ✓
International and improvisational
Event organization; culinary shows and workshops
15 7 2005
Norbert Go∏´biowski
Jaros∏aw UÊciƒski
Restauracje 99 Sp. z o.o. al. Jana Paw∏a II 23, 00-854 Warsaw NR 22 620-1999/22 620-1998 restaurant99@restaurant99.com www.restaurant99.com
WND WND WND WND
WND WND WND WND
Edipresse Polska, L’Oreal Polska, PSI Pharma, WBJ, BOIG, Eurobuild, PZU ˚ycie, Moet Hennessy, Axa, Avon, Ernst & Young: WND
✓ ✓ -
✓ ✓
✓ ✓ ✓
Equipment and furniture leasing; International; fusion; live music; lightning; Italian; American; Polish; decorations; culinary shows; culinary lessons; French realization of unconventional orders
30 20 1997
Ernest Jagodziƒski Karolina Then-Paszkowska President
NR 22 851-2323/22 851-2321
Santa Fe Partners Sp. z o.o. ul. Zajàczkowska 11, 00-785 Warsaw
WND WND WND WND
WND WND WND WND
MT Targi: 500; Rajd Barbórki (after party): 600; Nordea Bank: 300; Good Point Agency: 1,200; Multikino (New Year’s Eve): 600; Gettin Noble Bank: 6x200; Accenture: 600
✓ ✓ -
✓ ✓
✓ ✓ ✓
Southwestern; others upon request
Full-service event organization (including art direction, sound, artists’ suggestions); theme parties; conference organization
50 20 1996
Ryszard Majewski
Piotr Grajewski
Sheraton Catering Services ul. B. Prusa 2, 00-493 Warsaw NR 22 450-6100/22 450-6901 maja.kurowska@sheraton.com www.sheraton.pl/catering
WND WND WND WND
WND WND WND WND
Warsaw School of Technology: 1,000; Microsoft Technology Summit (conference for programmers and IT specialist): 2,500; European Association for Osseointegration (international congress): 2,500; European Wind Energy Association (international fair party): 300
✓ ✓ -
✓ ✓
✓ ✓ ✓
Oriental; Mediterranean; European; Asian; Greek; Chinese; Thai; Italian; French; German; Indian; Latino and others
-
WND WND 1997
Artur Grajber
Thomas Schoen
Villa Catering Prominentis Sp. z o.o. ul. Marsza∏kowska 55/73, 00-676 Warsaw NR 22 827-8716/22 826-5337 info@restauracjavillafoksal.pl www.restauracjavillafoksal.pl
WND WND WND WND
WND WND WND WND
Polsat Warsaw Open (players’ party): 400; Palmolive (promotion, Ewa Minge’ s show): 500; Worldwide Telecom Day: 350; German Historic Institute: 250; Medical University of Warsaw (anniversary): 250
✓ ✓ -
✓ ✓
✓ ✓ ✓
International with Polish and Italian accents
Lighting; sound; art direction
40 40 1992
Grzegorz Wawrzyniak
Pawe∏ Chmielewski
Molala Sp. z o.o. ul. Ch∏odna 48, 00-872 Warsaw NR 22 251-9151 info@molala.pl www.molala.pl
WND WND WND WND
WND WND WND WND
WND
✓ ✓ -
✓ -
✓ ✓ ✓
Japanese; fusion; Mediterranean; Californian
Sushi classes; motivation meetings; trainings; conferences
WND WND 2009
Pawe∏ Lisowski
WND
Rank
Buffet / Bar / Smorgasbord
Top local executive / Title
Banquets with wait staff / Mass events
Chef
Company activity: Catering / Restaurant / Canteen operator
Total number of catering employees / Full-time employees/ Year founded
Types of events served: Company name Address Tel./Fax E-mail Web page
Revenue from catering (z∏. mln)
Total revenue (z∏. mln)
Largest events catered (2009-2010): Number of participants
Other services offered
WND
1st half of 2010 / 2009 / 2008 / 2007
ania@bluecactus.pl www.bluecactus.pl
Notes: NA = Not Applicable, NR = Not Rank ed, WND = Would Not Disclose. Research for The List was done in September 2010. Number of employees and ownership structure are as of August 2010. All information pertains to the companies’ activities in P oland. Companies not responding to our survey are not listed. Footnote: (1) Financial Year October 1 - September 30
catering; wine-tasting; Traditional Italian; Polish Full-service conferences; decoration; meal and fusion upon request delivery; wine shop
General Manager
Owners
General Manager
Owner
Director
President
WND
President
General Director
WND
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omi ssions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e -mail to wbjbol@wbj.pl. Copyright 2010, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher . Reprints are available.
ENTERTAINMENT
www.wbj.pl
The Australian Pink Floyd Show in town
Just another laser on the wall? The Australian Pink Floyd Show will be in W arsaw on January 27. T ickets range EBB from z∏.140-400.
For info on other Polish shows and ticketing, log on to www.ticketpro.pl
Here be Chinese dragons Anyone looking in Poland for a cultural or culinary experience of China is going to be hard-pressed to find one. Most of the country’s sizable ethnic Chinese minority originates from V ietnam, a distinction which, for example, strongly informs the local take on Chinese food. Nevertheless, Sinophiles hoping for a less V ietnam-
Polish cinema
Classics of the silver screen “Polish Films in English” Kino Alchemia ul. Jezuicka 4
COURTESY OF TAPFS
The music of Pink Floyd with lots of smoke and lasers. And some A ussie accents. That pretty much sums up the Australian Pink Floyd Show, a big-budget Pink Floyd tribute band which has made a name for itself by touring internationally. The group is in P oland this month, playing a grueling seven shows over eight nights in order to bring their psychedelic performance art to as large an audience as possible. If you’re old enough to fancy a flashback to the ‘60s and ‘70s or young enough to just fancy lasers, this might be a good night out on the town.
JANUARY 17-23, 2011
influenced cultural fix need not despair – the State Ethnographic Museum in Warsaw is running a new exhibition of landscape paintings by Chinese artist Liao Ci Fu. “In the land of dragons, mountains, clouds and waterfalls ... landscape according to Liao Ci Fu,” which opened last week, presents a series of
atmospheric paintings of the “Shan shui” (“mountainwater”) school. This is Liao Ci F u’s first exhibition in Europe. The exhibition offers a welcome respite from the less than idyllic grey of winter Warsaw, but non-P olish speakers shouldn’t expect a vast amount of explication in EBB English.
Poland has a long, rich tradition of cinema, but the language and cultural barriers can prove impenetrable. Many foreigners, discouraged by these formidable obstacles, choose to simply avoid or tune out Polish films. More’s the pity, because the culture and language in Poland – as in most countries – is strongly influenced by the domestic cinematic tradition. Anyone unfortunate enough to have experienced first-hand the recent chaos plaguing the nation’s trains might well have heard frozen-footed passengers muttering “jest zima, to musi byç zimno” (“it’s winter, it’s supposed to be cold”) with dark irony. And when Infrastructure Minister Cezary Grabarczyk earlier this month survived a no-confidence vote over his ministry’s handling of the transport muddle, one opposition politician quipped that the day should be commemorated as a new holiday, “Dzieƒ P ieszego P asa˝era” (“the Day of the P edestrian Passenger”). Both quotes, now part of the popular vernacular, are from the 1981 absurdist comedy “MiÊ.” For those interested in seeing films which have informed P olish culture, Kino Alchemia’s “P olish Films in English” cycle is a
COURTESY OF PERSPEKTYWA
22
“MiÊ” lays bare many absurdities of the communist era good way to get acquainted. The cinema, located on ul. Jezuicka 4 in W arsaw’s Old Town, is showing important films with English subtitles roughly twice a month, with a firm schedule of showings taking place between now and June. Many of these are masterworks by some of the most respected names in international cinema: directors like W ajda, P olaƒski, KieÊlowski and Bareja. The next film in the cycle, playing on January 31, is Krzysztof KieÊlowski’s “Przypadek” (“Blind Chance”), which explores the life of the
main character, W itek (portrayed by Bogus∏aw Linda). As the plot progresses, a pivotal moment takes place in Witek’s life as he rushes to catch a train and the film depicts three possible outcomes of the event. Upcoming showings include “Seksmisja” (“Sexmission”) on February 2; “P oszukiwany, poszukiwana” (“Man – Woman Wanted”) on February 21; and “MiÊ” (“T eddy Bear”) on March 3. E Blake Berry For the full schedule and ticket info, log on to http://filmowawarszawa.org
Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl
Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl
Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl
LAST WORD
JANUARY 17-23, 2011
www.wbj.pl
23
Tech Eye
The useful ... One of our favorite discoveries at the show was Samsung’s Sliding PC 7 Series, a new line of net-
CO UR TE SY OF SA MS UN G
Think back to the worst hangover you’ve ever had. Now multiply that feeling by π and add the flavor of regurgitated mammal. Then imagine opening your swollen, throbbing eyes to find muscled lads (clad in a hint of spandex and trowel-fulls of make-up) hovering over you. That, dear reader, is how Techeye returned to consciousness last Monday. The chisled transvestites turned out to be concerned Cirque du Soleil performers who had discovered our seemingly lifeless carcass beneath some of their
book-cumtablet computers. Under its 10.1-inch multi-touch display, the computer has a slide-out keyboard to accommodate
OF
TA SE R
IN TE RN AT IO NA L
u s old-fogeys who still like to type on regular QWER TY keys. The Sliding PC 7 Series runs W indows 7, is powered by Intel’s Atom processor and features a solid-state drive. It weighs over two pounds, not quite as svelte as the ladies might like, and it is scheduled hit the market this spring at a relatively girthy $699 (z∏.2,071). Still, it has multiCO UR TE SY
trapeze equipment. The source of the flavor dominating our cesspool of a mouth remains blessedly unknown. What happened? The Consumer Electronics Show 2011 happened, that’s what. As Techeye wrote last week, we flew at the last minute to Las Vegas to catch the start of CES, an event also known as the Lodestar of the Technological Universe. Much insanity ensued, and, from what we’ve since gleaned from CCTV footage, it seems we attempted to reenact the plot of 2009’s “The Hangover” as a one-man show. It looks like we may not be invited back to CES – or, indeed, to the United States – until a certain statute of limitations expires, so it’s probably a good thing we got to check out so many awesome new gadgets this year. Here are some highlights:
touched our heart, so we’ll probably pick one up. Another interesting item at CES was LG’s new four-door, F renchdoor refrigerator, which, the firm boldly claims, has “ t h e m o s t refrigerator shelf available.” “Pshaw,” you might scoff, having seen some rather capacious fridges in your time. But LG has even preempted your disdain, noting that its product has “even more [shelf space] than refrigerators with a larger claimed capacity.” Apparently you can squish 47 gallons of milk in there. While Techeye loves the idea of cramming massive quantities of dairy into an appliance, what’s more intriguing is the connectivity LG has worked into the fridge. Using its “Thinq” technology, the firm can “count and display the frequency at which homeowners open the refrigerator door,” allow them to “set their refrigerator temperature while they’re at the gym” and “easily identify what is in the refrigerator.” This last feature sounds a little banal, but if you could see the deformed substances inhabiting Techeye’s current fridge, you’d definitely appreciate it. Anyway, LG’s new appliance should be available this year at a starting price of $3,299 (z∏.9,760).
cles fit two people – snugly, it must be said – and they’re considerably smaller than Smart cars. They’re smarter too, with advanced networking and intervehicle communication functions as well as sensor technology that can automatically brake when there’s a pedestrian in front of you (not that pedestrians have much to fear from the EN-V’s 50 km/hour max speed). The EN-V is still a concept, so there’s no telling when or if it will hit showroom floors. If it does though, let’s hope the bald guy isn’t part of the package. Finally, one of the gadgets Techeye was least fond of at CES: Taser International’s girlfriendly Taser C2 ECD. It’s not that the product is pink and dangerous (a winning combination) or that it costs up to $449.99 (z∏.1,331). No, it seems that our reenactment of “The Hangover” was painfully faithful. There was a used Taser C2 ECD
COURTESY OF LG
Memories (and scars) of CES 2011
nearby when we woke up, and our nether region has been sore ever since. Best CES ever? Oh yes. ●
... and the less useful One of the quirkier products displayed at CES was General Motors’ Electric Networked Vehicle (EN-V), a line of concept cars developed by the American car maker. The vehi-
ORS AL MOT GENER SY OF COURTE
Ever purchased a car with a bald man in it? Let us know: techeye@wbj.pl sare_268x81.ai
22-03-10
13:25:37