WBJ #48 2012

Poland’s economy is growing at an even slower rate than analysts had expected

1.4%

Climate conundrum The Doha climate change talks seem doomed to fail. Poland will likely host the next meeting anyway

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VOLUME 18, NUMBER 48 • DECEMBER 3-9, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

One man’s trash ... COURTESY OF CISZEWSKI MSL

REAL ESTATE

Poland puts too much of its garbage in landfills, but some Poles are coming up with innovative solutions 12-13 to the problem

• Atrium Felicity • Warsaw offices • HB Reavis: train station

Plus • Poles still poor • E-commerce growth • MacBook Air review • Greece aid agreement • Winter Olympics in Poland? • Unemployment rises slightly

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-5 Business . . . . . . . . . . . . . . . . . . . . . .6 Finance & Economics . . . . . . . . .8-9 Data in Focus . . . . . . . . . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Law . . . . . . . . . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . . . . .18 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Money changers

Against the grain

The government has re-jigged the system by which it calculates its foreign-currency debt

Poland’s justice minister has given a harsh verdict about his party’s plans to bring a former PM to trial 4

NEWS

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Numbers in the News

Poland opposes UN internet regulations

of CEOs in Poland are pessimistic about the future, according to a survey by Grant Thornton.

12.5% was Poland’s unemployment rate in October, in line with forecasts.

€44 billion

is the value of the latest aid deal for Greece.

Quote of the Week “Basically, this means that future economic growth is entirely at the mercy of foreign demand.”

SHUTTERSTOCK

Figures in focus State protection

Jacek Ciesnowski

40 30 20 10

**Lowest in EU27

nc e* Fra

an y De nm ar k

Ge rm

EU 27

*Highest in EU27 Source: Eurostat

Company index Allegro ..........................6 Ernst & Young ..............5 OC&C.............................. Alstom ..........................6 Eurocash ......................6 Peter Nielsen & Apple ..........................23 Fiat..............................13 Partners ....................14

On WBJ.pl Europe’s dysfunctional growth compact

WSE bankruptcy record A record 20 companies listed on the Warsaw Stock Exchange (WSE) or NewConnect have filed for bankruptcy this year. Entering bankruptcy proceedings does not mean that investors shy away from the given company’s stocks. On the contrary, they try to make money on speculating. In Q3 alone a total of 200 companies (listed and unlisted) in Poland filed for bankruptcy. ●

Social protection expenditure, 2010, selected EU27 countries, by % of GDP spent

UK Gr ee ce

ITU’s treaty. The European Parliament, in a statement issued in November, warned that “the ITU, or any other single, centralized international institution, is not the appropriate body to assert regulatory authority over either internet governance or internet traffic flows.” According to Gazeta Wyborcza, the Polish government has begun negotiations with other countries to build a coalition opposing the new treaty. According to the UN, the proposed changes to the treaty must be unanimous before they would come into force.

Po lan Cz d ec hR ep ub lic

Controversially, the proposal also sets out fees for sites that receive visitors from abroad. The idea is based on regulations regarding international phone calls, and would require companies to pay local networks for each visitor accessing their sites from overseas. If companies decide that international visitors are too expensive to serve, they could cut off access, leaving people living abroad unable to log on to their websites. Poland opposes the new regulations, in large part due to the proposed fees. Companies like Google have started online petitions against the

Representatives of 193 UN International Telecommunication Union (ITU) countries will meet in Dubai this month. There, behind closed doors, they’ll vote on a proposed new treaty on internet regulations, which many say would censor the web. The Polish government has said it will not support the changes. The proposal would hand over rights to assign IP addresses and domain names to an international body, controlled by the UN and its members. It could allow some regimes to control internet traffic in their country and block content deemed unsuitable for its citizens.

tvi a

When it comes to competitiveness in the production sector, only Germany is better than Poland among European countries in the Global Manufacturing Competitiveness Index, a survey conducted by Deloitte and the US Council on Competitiveness, Puls Biznesu reported. Besides Germany, Poland is outdone in the ranking by 12 other countries.

Tomasz Kaczor, chief economist at Bank Gospodarstwa Krajowego in Warsaw, as quoted by Bloomberg, commenting on the Q3 economic growth figures and the fact that domestic demand has all but dried up.

ia*

Competitive manufacturing

is by how much Poland’s economy grew year-on-year in the third quarter of 2012, coming in well below expectations.

86%

Popular president A significant majority, 66%, of Poles think highly of President Bronis∏aw Komorowski, praising him as the head of state, while 21% are critical of his actions in office, a November survey by CBOS shows. While support for Mr Komorowski has dropped by 2 percentage points since October, the number of his critics has remained unchanged.

1.4%

Another poll from TNS Polska and another huge surprise. Last Wednesday the pollster published its most recent survey which shows that both parties are tied at 28% support. Poll numbers have swung dramatically over the past few months due to a number of highly publicized incidents. “We have this Bruno K. [attempted bombing] case, EU budget negotiations, the motion to bring Kaczyƒski and Ziobro before the State Tribunal – and it’s all happening at the same time. Perhaps some time has to pass before any stable trends show up in these polls,” said sociologist Jaros∏aw Flis.

IN THE SPOTLIGHT

PO and PiS tied

DECEMBER 3-9, 2012

Ro m

Log on to WBJ.pl to read about some of the steps that can be taken to prevent political deadlock in EU budget negotiations, while increasing the budget’s flexibility so that it can be used to stimulate growth.

ARCAD........................15 Google ..........................2 PKP Intercity ................6 Atrium European Real Grant Thornton ........2, 9 Plac Katedralny ........15 Estate ........................17 GRI..............................16 Poczta Polska ..............4 Atrium Poland Real Grupa Waryƒski ........17 Polish Hotel Estate Management ..17 HB Reavis ..................15 Company ....................17 Bank Gospodarstwa Holding Tacit Krajowego ....................2 Development ..............15 Polish State Bank Zachodni WBK..10 Home Broker ............17 Railways ....................15 Biedecki Biedecki i

HSBC ..........................10 Polnord ......................17

Partnerzy....................14 Ideal Idea....................17 PwC ............................15 Bloomberg ..............3, 4 IKEA..............................6 Raben Group ................5

Calendar

December 6

WORKS ON PAPER AUCTION

INTERNATIONAL CHRISTMAS MIXER IN KRAKÓW

Event:

An auction of work by well-known Polish artists is to be held. Many pieces have starting prices of under z∏.1,000.

Event:

Location:

DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw

BPCC’s international Christmas mixer takes place in Kraków this year, involving a number of other international chambers of commerce. Sheraton Hotel, Kraków, ul. PowiÊle 7 bpcc.org.pl

Web:

desa.pl

Location: Web:

Bogdanka ....................6 InterContinental

RED Real Estate

Buddha Machine........23 Hotels Group ..............17 Development ..............17 BZ WBK ........................9 Jasnier........................15 Rossman ......................6 Colliers JSW ..............................6 RTV Euro AGD ............17 International ..............15 KGHM ........................20 Saturn ........................17 Cushman Leroy Merlin ..............17 & Wakefield................17 Lion’s House ..............17 Tacit Development ....15 Dantex ........................17 Mo-BRUK ..................12 Tieto Poland ..............15 Deloitte ..................2, 12 Morgan Stanley ............9 Ventia..........................17 Echo Investment ........15 Mostostal Warszawa..12 WSE ....................2, 6, 20 Empik ..........................6 Nikon ..........................23 X-Trade BrokersDM ..20

NEWS

DECEMBER 3-9, 2012

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Budget

Euro zone crisis

Poland aims to ease pressure on debt ceiling

Greece reaches deal for aid funds

Poland’s government has approved changes to the law that will allow it to use the average annual exchange rate to calculate public debt denominated in foreign currencies, thus limiting the impact of exchange-rate fluctuations on the size of the debt. Currently the z∏oty rate from the last day of December is used to value Poland’s foreign debt, making the currency prone to high volatility late in the year. At the end of 2011 Poland intervened in the currency market to stem the weakening of the z∏oty, which, if left to continue, would have made paying off the country’s debts in foreign currencies more expensive, increasing the threat of breaching the 55 percent debt-to-GDP threshold. Exceeding this limit would

COURTESY OF KPRM

The government will now use the average annual exchange rate to calculate foreigndenominated public debt

Prime Minister Tusk believes the government has found a solution to deal with the threat the volatile z∏oty poses to the national debt trigger legally mandated budget cuts and tax hikes. “We’ve been thinking for quite some time on how to avoid the impact of the z∏oty on the level of public debt,” Prime Minister Donald Tusk said at a news conference last week. “I believe we’ve reached

our goal.” According to Bloomberg data, 31 percent of Poland’s debt is denominated in foreign currencies. At the end of last year, the country’s debt came in at 53.5 percent of gross domestic product, according to the Finance Ministry.

The government’s decision still awaits the approval of parliament, where it is due to be debated. Deputy Finance Minister Wojciech Kowalczyk said in September that the government wants the new rules to come into force this year. Gareth Price

EU leaders say the agreement will strengthen confidence in Europe’s economy Greece has reached a deal with the euro zone finance ministers and the International Monetary Fund to reduce its debt and receive the latest installment of much-needed bailout funding. Mario Draghi, president of the European Central Bank, said the deal would “reduce the uncertainty and strengthen confidence” in Europe’s economy. After the deal was announced on Tuesday, European markets including the FTSE, the DAX and the CAC40 saw gains. According to the agreement, Greece will receive roughly €44 billion in financial aid through March 2013. Out of the €44 billion, €24 billion will go to troubled Greek banks while some €11 billion will go into the country’s budget. The other €9 billion will be granted in the first quarter of next year, if Greece meets certain conditions. Under the terms of the deal, Greece must reduce its public debt from about 150 percent

now to 124 percent of GDP by 2020 and below 110 percent by 2022, although this would likely be impossible without some debt forgiveness from Greece’s creditors. That may be in the cards, though. German Finance Minister Wolfgang Schäuble hinted that countries would consider forgiving some of Greece’s debt if the country met its other targets. The deal also calls for delays to loan maturities made by other countries and the euro zone’s bailout fund, the European Financial Stability Facility, by 15 years. Interest payments on loans by the EFSF will be delayed by 10 years. Greek Prime Minister Antonis Samaras called the latest deal a “great victory.” “Greeks fought together and tomorrow will be the beginning of a new era for us,” he added. Up until now, The troika group, which includes the European Commission, the European Central Bank and the IMF, have agreed on two rescue packages to the tune of €240 billion for Greece, of which the country has received €150 bilRemi Adekoya lion.

NEWS

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Poland’s railway trade unions could go on strike before Christmas and New Year’s Eve, according to Minister of Transport, Construction and Maritime Economy S∏awomir Nowak. “Railway unionists will try to paralyze the country,” he said. The cause of the protest is the announced reduction, by the Transport Ministry, of the number of pensioners who would be eligible for concessionary rail fares in 2013. Unions want the minister to keep the concessionary system for pensioners unchanged.

Managers’ earnings double Those holding managerial positions in Poland have no reasons to complain about their salaries. An average managerial salary in Poland comes to $136,500 annually, twice as much as in 2001, indicates a study by consulting firm Hay Group, which surveyed 14 million workers in 20,000 companies all over the world. The largest increase, of close to 250%, was recorded in China, followed by South Africa (241%), with the lowest increase in Mexico (25%) and the US (38%).

Politics

Justice minister blasts Kaczyƒski petition, snubs own party Jaros∏aw Gowin has criticized his own party’s decision to put a former prime minister and a former justice minister before the State Tribunal Justice Minister Jaros∏aw Gowin has said he sees “no basis” for bringing Law and Justice party leader Jaros∏aw Kaczyƒski, a former prime minister, and Solidarna Polska leader Zbigniew Ziobro, a former justice minister, before the State Tribunal. The statements are a direct criticism of recent moves by his party, Civic Platform (PO), to do just that. Critics say the politicians breached the constitution when Mr Kaczyƒski, who was prime minister from 2006 to 2007, gave Mr Ziobro, then justice minister, powers that made him a “superminister” over other ministers. Last week PO introduced a petition in parliament which, if passed, would bring the two politicians before the State Tribunal for

cal activities of Jaros∏aw Kaczyƒski’s government and I am very critical of what Minister Ziobro did, but they will be judged by history,” said Mr Gowin. “If they broke the law, that is what the prosecutor is for, but I do not see any basis for putting them before the State Tribunal.” Mr Gowin added that it was “bad political culture” to initiate such action almost six years after Mr Kaczyƒski’s party had lost power.

Enough support?

Mr Gowin is one of the more outspoken ministers in the PO government their actions. Poland’s State Tribunal is the judicial body that rules on the constitutional liability of people holding the highest public offices. It examines cases concerning the infringement of the constitution by senior officials.

Blida (of SLD), who committed suicide when secret service agents came to arrest her on corruption charges. Mr Kaczyƒski’s government made cracking down on corruption its biggest priority, but critics saw a witch hunt. “I am critical of the politi-

Remi Adekoya

Climate summit

Deadlock at Doha Climate Change Conference Poland to host UN climate summit

SHUTTERSTOCK

Poczta Polska to remain a monopoly? January 1, 2013 was supposed to mark the end of the monopoly (for letters under 50 grams) of Poczta Polska, the state-run postal office network. Meanwhile, the country’s postal law, which was hurriedly amended, will now likely guarantee Poczta Polska the position of monopolist for the next 12 years. The changes in the postal law were required by the EU and were to be aimed at liberalizing the postal market and lowering prices. However, the government managed to push through clauses that give Poczta Polska exclusive rights to deliver pension payments, among other privileges. ●

The petition is backed by opposition parties Palikot’s Movement and the Democratic Left Alliance. The petition’s supporters accuse Mr Kaczyƒski and Mr Ziobro of having indirectly caused the death of former Transport Minister Barbara

For PO’s petition to pass, its coalition partner, the Polish People’s Party (PSL), will have to support it. However, it is far from clear how PSL will vote on the issue. Many in the Polish media have speculated that Prime Minister Tusk, leader of PO, is himself not happy with the petition, which may have been put forward without his approval. Earlier this year, Mr Tusk had said he wouldn’t favor bringing the two politicians before the Tribunal.

Poland relies on coal for most of its energy. Here, the highly polluting Belchatów power plant

Many countries, including Poland, are opposed to stricter CO2 emissions targets This year’s United Nations Climate Change Conference, which started last Monday in Doha, is particularly significant for Poland, whose economy appears far from ready for stricter CO2 emissions targets. The Kyoto Protocol expires on December 31, leaving the world without any provisions to control greenhouse gas emissions. Last year’s summit resulted in a plan to sign the Global

Climate Change Agreement in 2015, but many observers have noted difficulties that stand in the way of the deal being implemented. “There are very few optimists who actually count on reaching any serious international agreement. There is the EU, Australia, New Zealand, Switzerland, maybe Norway, who may vote for it, being in total responsible for only about 15 percent of the world’s CO2 emissions,” Jerzy Buzek, a Polish MEP and former president of the European Parliament, told the AIN news agency. Indeed, China last week

Poland is expected to host the United Nations climate summit next year. The official decision will be made on December 7, but no other country submitted an offer to host the talks, which makes Poland’s selection almost certain, Reuters reported. Poland formally submitted its offer for Warsaw to host the talks last Wednesday at this year’s Climate Change Conference in Doha. Some 20,000 guests from all over the world are expected to arrive to Warsaw to take part in the summit and other accompanying events. The main talks will be held at the National Stadium and at the Palace of Culture and Science. “Poland is a good place to go. What this conference does is bring the world’s attention to the host country and encourage that country to actually step up to the plate and do ruled out the idea of restricting growth in fossil-fuel emissions from developing nations before 2020, Bloomberg reported. EU Climate Commissioner Connie Hedegaard meanwhile declined to give details about how the European Unions plans to meet commitments for increasing aid for poorer countries trying to cut emissions. Being bound by EU guidelines to apply the Kyoto Protocol, Poland reduced its CO2 emissions by the required 6

COURTESY OF WIKIMEDIA COMMONS

Railway unions to ‘paralyze’ Poland?

DECEMBER 3-9, 2012

COURTESY OF EAST NEWS

Christiana Figureres more,” the head of the UN Climate Change Secretariat, Christiana Figueres, told Reuters. ●

percent – compared to the 1988 level – over the 20082012 period. Warsaw is, however, not in favor of further provisions limiting emissions, and has already twice blocked EU regulations on the matter. The Polish government fears that stricter environmental requirements would force the country to shutter its coal power stations, resulting in increased unemployment and a need for more energy imports. The country relies

heavily on highly polluting coal for its energy production. “The proposed regulations are a threat not only to Poland, but to the competitiveness of the European Union market as a whole. The matter requires a deep and serious discussion,” said Mr Buzek. The United Nations Climate Change Conference comes to an end on Friday, December 7. KR, GP

NEWS

DECEMBER 3-9, 2012

Winter Olympics

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Poland bans the ritual slaughter of animals

Kraków wants to bid for 2022 Winter Olympics

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In December the Polish government will decide whether to support a planned bid by the city of Kraków to host the 2022 Winter Olympics. Kraków would host the games in cooperation with the mountain resort town of Zakopane, also in southern Poland, and Chopok in neighboring Slovakia. “I’ll back up this initiative, but the final world will belong to Minister of Finance Jacek Rostowski,” Mr Tusk said. According to preliminary calculations the games would cost up to $1.8 billion. This would include a conference center and a multi-purpose venue that could host ice skating events, both of which are already being built. Regional authorities expect to receive some of the funds from the European Union, which could be used to renovate other venues and build much-needed transport infrastructure. Proponents of the idea suggest that most of the infrastructure needed to host the event is already built or will be finished within the next few years. The only missing facilities are a luge/bobsleigh track and a place to host speed skating events. The biggest obstacle to overcome, however, would be building new routes between Poland and Slovakia and new roads in southern Poland.

SHUTTERSTOCK

Prime Minister Donald Tusk has backed the bid

Zakopane would host ski-jumping competitions Kraków, the second largest city in Poland, would host ice skating events (figure skating, hockey, speed skating) and possibly luge and bobsleigh. Ski jumping, crosscountry and biathlon events would be held in Zakopane. Chopok in Slovakia would host alpine skiing and snowboarding events. Poland has hosted various winter sports events in recent years. Zakopane is a regular stop on the Ski Jumping World Cup tour, while a

Cross-Country World Cup event took place in Szklarska Por´ba in February 2012. A bid by Kraków would also not be Poland’s first attempt to host a Winter Olympics. In 1999, Zakopane lost to Turin in the race to host the 2006 event. So far, the other candidates lining up to host the event are Barcelona, Oslo, St. Moritz, Nice and Lvov. The decision on who will win the race will be made in 2015. Jacek Ciesnowski

Poland’s Constitutional Tribunal has banned the ritual slaughter of animals, affecting Muslim and Jewish communities who carry out the practice as part of their religious observances. The ruling, which outlaws cutting an animal’s throat and allowing it to bleed to death without stunning it beforehand, comes just weeks before the EU is due to allow ritual slaughter on religious grounds. It is not certain if the EU law will supersede the new ruling, although Poland’s Agriculture Minister Stanis∏aw Kalemba said the EU law took precedence, the BBC reported. Mr Kalem-

ba’s ministry has awarded licenses to at least 17 slaughterhouses to carry out ritual killing of animals. The court considered the case following a petition by Polish animal welfare groups, who believe EU law allows individual countries to set their own rules. The judges reached the verdict that a 2004 amendment allowing ritual slaughter on religious grounds was unconstitutional because it contravened animal rights legislation from 1997, which says slaughter should only “follow the loss of consciousness” after a farm animal is stunned. Gareth Price

World Entrepreneur of the Year Ewald Raben, CEO of Raben group, is the winner of the latest Polish edition of the World Entrepreneur of the Year Competition, organized by Ernst & Young. Gazeta Wyborcza reported that the 44year-old Dutch businessman manages his transport and logistics company from its headquarters in Gàdki near Poznaƒ, where he started after moving to Poland from the Netherlands in 1991. Mr Raben will represent Poland in the world final of the competition.

Consumer confidence rises The mood of Polish consumers improved in November for the first time in a while, according to the Consumer Confidence Index (CCI), prepared by the research group Ipsos. The CCI has increased by 6 points compared to the October reading, and now stands at 78.20. ●

> Establishment of companies > Accounting services > Payroll and human resources > Law and notary offices > Payment recovery and debt recovery > Permits for foreigners > Seat for the company

Demographic issues

Opolskie voivodship establishes ‘Special Demographic Zone’ Poland is trying to fight against population loss One region in Poland is looking to tackle its demographic problems head-on – by creating a “Special Demographic Zone,” something like the special economic zones that regions use to attract investors. The difference is that the incentives in the Opolskie voivodship, in southwestern Poland, where the program is being launched, will encourage families to have more children. The launch of the program was marked last Monday with a conference on the issue that was attended by Prime Minister Donald Tusk. “We have to do everything so that by the year 2035, Poles have more

children,” he said, referring to the year at which experts expect the number of children being born in Poland to reach a particularly low level. By that year, the Opolskie voivodship’s population is expected to decrease by a whopping 12 percent – as much as if the entire city of Opole (population 120,000), the voivodship’s capital, were to empty. The special incentives that the region is planning to implement include longer maternity leave, greater employment guarantees for mothers, and special tax breaks for families with large numbers of children. For example, the city of Kluczbork is initiating a program whereby families will only have to pay 50 percent of

the cost of sending their third child to preschool. Every child the family has thereafter would get to go to preschool for free. Poland as a whole is facing some difficult economic challenges: experts say that the country is set to lose 6 million of its 38 million population within the next 40 years. Poland’s fertility rate, at 1.3 percent, is among the lowest in Europe and emigration has remained high following EU accession in 2004. The national government in Warsaw is working on new legislation that will extend both maternity and paternity leave and has set aside some z∏.370 million for building preschools and kinderEmma Williamson gartens.

www.bilans.eu BILANS Accounting and Consulting Company Ltd., 02-729 Warszawa, 195 Rolna st., tel. (+ 48) 22 212 86 27-29, mobile: (+48) 502 057 107 e-mail: Jacek@bilans.eu

BUSINESS

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Eurocash expected to join WIG20 Eurocash might soon join the WIG20 index, which lists the largest 20 companies on the WSE, reported Parkiet. Eurocash, as one of the leaders in the Polish distribution and retail market, has been posting some exceptionally strong results recently. No wonder, then, that many analysts are almost sure it will become the WSE’s next blue-chip, with many expecting it to join the WIG20 in March, 2013.

Generous coal dividends? During nine months of this year, coal companies registered net profits of z∏.1.67 billion (z∏.0.12 billion less than last year). However, Tomasz Tomczykiewicz, deputy minister responsible for mining, says it’s not impossible coal miner JSW’s dividend will be higher than last year’s in terms of percentage. Bogdanka’s dividend strategy will be published in a strategy document. ●

Rail transport

EC ponders financing for PKP Intercity Pendolinos

PKP Intercity, a semi-independent division of Polish State Railways (PKP), has signed a contract to buy highspeed Pendolino trains from French firm Alstom. The deal, worth €665 million, also includes the cost of maintenance for 17 years. PKP Intercity is hoping to meet half of the cost from a government-guaranteed European Investment Bank loan and the other half from the EU’s Operational Programme Infrastructure & Environment. However, The European Commission is hesitating about whether to give the money, because it is afraid PKP Intercity might already have an unfair advantage in the Polish interregional market. The Polish government signed a contract in February 2011 allowing PKP Intercity to provide inter-regional services, giving it z∏.240 million in

DECEMBER 3-9, 2012

Auction portal Allegro ‘best’ retailer in Poland Allegro, an on-line auction portal, is the best retailer in Poland, according to a consumer survey carried out by OC&C, a management consultancy firm. Allegro was followed by IKEA, Rossman, Empik and Biedronka in the survey’s ranking, which took into account factors such as price, quality and range of products, service, trust, and physical or

The EU’s Operational Programme might cover half the cost of buying Pendolino-type trains for PKP Intercity

online retail outlets. Respondents put Allegro at the top of seven out of the 11 categories analyzed. OC&C analysts emphasized that Allegro has demonstrated that “competing online is not only the preserve of the giant players, but also for those with a creative and dynamic offering and ambitious plans.” RÂ

Bogdanka gets new management board head

COURTESY OF ALSTOM

A new Alstom Pendolino funding for this purpose last year. Brussels is looking into whether this can be considered impermissible public aid, Forsal.pl reported. “We’re headed for a final settlement. Both parties are set on reaching an agreement,” said Janusz Malinowski, the president of PKP, Money.pl reported. He also stated that a compromise deal can be expected within weeks. Meanwhile, payments to

Alstom are being made by PKP Intercity. The Pendolino trains, which are able to travel up to 250 km/h, are to service the Gdaƒsk-Warsaw-KatowiceKraków route. PKP Intercity will have to renovate the route’s infrastructure and is planning to do so by the end of 2014. A new rail traffic management system is to be introduced by the end of 2015. Magdalena Sakowska

Zbigniew Stopa has become the new president of the management board at Bogdanka, a major Polish mining company listed on the Warsaw Stock Exchange’s blue-chip WIG20. The previous CEO, Miros∏aw Taras, said goodbye in early October following a surprising and somewhat controversial decision by the company’s supervisory board to remove him. A not-insignificant number of managers wanted to take the helm of the coal miner, but Mr Stopa was said to be the favorite from the outset, Parki-

et reported. He knows the company inside out, having worked for Bogdanka for 28 years. In other news, rumors that Polish state-controlled coal miner JSW is considering buying Bogdanka have continued to circulate. Treasury Minister Miko∏aj Budzanowski last Wednesday commented on the rumors, Parkiet reported. “I do not approve of the idea of JSW’s acquisition of Bogdanka. This company has been sold by the Treasury so nationalizing it again just doesn’t make sense to me,” the minisGP ter said.

FINANCE & ECONOMICS

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Online shopping

DECEMBER 3-9, 2012

Most entrepreneurial cities

Poland is fastest-growing e-commerce market in Europe

SHUTTERSTOCK

Warsaw, Poznaƒ and Wroc∏aw are the most entrepreneurial cities in Poland, according to figures from the Central Statistical Office as analyzed by Dziennik Gazeta Prawna. The least entrepreneurial cities include Bia∏ystok, Bydgoszcz and Toruƒ. The ranking was compiled by calculating the number of established firms per capita in the country’s major cities. In Poland’s political and financial capital, Warsaw, 1 in 5 inhabitants has their own company. The city has one of the lowest unemployment rates in the country, at just over 4 percent. Poznaƒ, which is the capital of the Wielkopolskie voivodship, and whose citizens are stereotypically seen as being particularly commercial-minded, came in second. Wroclaw, the capital of Lower Silesia and a city with a large number of

COURTESY OF WIKIMEDIA COMMONS

Poznaƒ was second in the ranking academic institutions, placed third. Meanwhile Bia∏ystosk, one of the poorest large cities in Poland, took last place with only 1 in 10 inhabitants running their own business. The unemployment rate in Bia∏ystok is

12.7 percent, just above the national average. Bydgoszcz and Toruƒ, the co-capitals of the KujawskoPomorskie voivodship in Poland’s north, came in secondto-last and third-to-last respecRA tively.

E-shopping forms a tiny percentage of Poland’s total retail sales, but it’s growing fast

Poles could spend as much as z∏.21 billion on internet shopping this year The value of e-commerce in Poland will increase by 24 percent, putting Poland in the lead in terms of growth in Europe, according to a new report by Forrester Research.

Poles spent z∏.17.5 billion on purchases made over the internet last year. This year, that amount could reach as much as z∏.21 billion, Gazeta Wyborcza reported. E-commerce in Poland is undergoing a significant surge in growth, even though internet purchases still amount to only 3.1 percent of all sales in Polish

stores. Online grocery stores are experiencing the most dynamic growth. Currently, there are 300 such stores on the Polish e-commerce market. According to a Euromonitor International report, Poles will spend z∏.450 million in online grocery stores this year. Remi Adekoya

Poland a top FDI destination In the first half of 2012 the number of foreign direct investment projects initiated globally dropped by 23 percent. Poland however was an exception to the trend, seeing FDI grow, attracting 155 projects worth a total of $823 million and creating 5,100 jobs, according to a

report prepared by fDi Intelligence for the Financial Times Group. “The number of foreign projects grew in H1 2012 by 3 percent compared to H1 in 2011,” said the report, as cited by Puls Biznesu. According to fDi data,

through the end of September 219 FDI projects worth close to $1.5 billion had created 8,300 jobs in Poland. That is more jobs created than in the whole of 2011, but far fewer than the 39,000 jobs created by FDI projects in 2005, GP a record year.

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FINANCE & ECONOMICS

DECEMBER 3-9, 2012

GDP per capita

Poles still among the poorest in Europe Despite steady economic growth, Poland’s GDP per capita will still be one of the lowest in the EU next year In 2013, Poland’s GDP per capita will stand at $13,490, lower than any other country in the European Union bar Latvia, Romania and Bulgaria, according to a ranking prepared by The Economist magazine. Poland was beaten out by countries such as Croatia, Lithuania, Russia and even Hungary, which has seen significant economic upheaval in recent years. When the ranking takes into consideration purchasing power parity, Poland just manages to slightly edge out the abovementioned countries. But it remains significantly poorer than its Western European counterparts, of whom the richest are the Norwegians, the Swiss and the Danes. To compare, Poland’s nominal GDP per capita is seven times lower than that of Norway. “I am not surprised by this ranking, you have to remember that we started from a very low

base after communism, probably on the same level as Bulgaria,” said Piotr Bielski, an economist at BZ WBK. “In fact, we have made progress in recent years narrowing that gap, not because of tremendous economic growth but because others have been shrinking while we have at least been growing,” he added, saying Poland had a chance to catch up to the rest of Europe “in 10 or 20 years.” Mr Bielski also said he expected Poland to continue making progress on this front in the coming years due to steady economic growth. But The Economist forecasts

a 2.1 percent GDP expansion for Poland in 2013 – hardly the pace needed for Poland to make real advances in closing the gap. Other institutions are even more pessimistic, expecting Poland’s economy to grow by around 1.5 percent next year. “As economic growth fades and foreign markets wilt, the [Polish] government will concentrate on shoring up support from creditors. It will be at pains to demonstrate careful budget management – the more so since a $29.5 billion IMF credit line lapses early in the year,” the newspaper wrote in a forecast of trends for 2013. Remi Adekoya

The haves and have-nots Selected 2013 forecasts by The Economist Country

Nominal GDP per capita

GDP per capita at PPP

Norway

$100,340

$63,690

Germany

$41,600

$41,550

Greece

$21,750

$25,030

Czech Republic

$19,050

$26,760

Hungary

$13,760

$20,400

Poland

$13,490

$21,970

Bulgaria

$7,150

$13,930

Ukraine

$4,010

$8,010 Source: The Economist

Interest rates

RPP member: December rate cut a done deal Poland’s benchmark rate currently stands at 4.50 percent The Monetary Policy Council (RPP) will cut Poland’s benchmark interest rate by 25 basis points at its meeting this week – the second time it will have done so in two months, according to Adam Glapiƒski, a member of the council. The RPP cut interest rates in early November by 25 basis points to 4.50 percent. His remarks come as the

country’s economy continues to show visible signs of a slowdown. “A quarter-point rate cut next week has already been decided,” Mr Glapiƒski told Bloomberg in an interview last week. The Monetary Policy Council is due to hold its rate meeting on December 4-5. He added that a “third rate cut or fourth rate cut won’t be so obvious, though.” On November 30, Poland’s Central Statistical Office announced that GDP growth in

the Q3 was just 1.4 percent. Forecasts for Poland’s GDP growth in 2012 and 2013 have been slashed several times by financial institutions in recent months. The OECD now expects 2.5 percent GDP growth for Poland in 2012 and 1.6 percent next year, down from a May forecast of 2.9 percent for both years. Meanwhile, Morgan Stanley’s latest forecast is for 2.4 percent GDP growth for Poland this year and 1.5 percent Remi Adekoya next year.

Polish CEOs most pessimistic in years A whopping 86 percent of CEOs in Poland are now pessimistic about the future of the Polish economy, as well as of their companies. This is the highest figure since the global financial crisis started, according to a survey by Grant

Thornton. However, half of the surveyed CEOs said that despite their worries about the future, they would give their employees pay rises. These will, however, be largely symbolic. Only 10 percent of CEOs plan to give

their workers a raise above the rate of inflation. According to Grant Thornton, the survey results indicate that company bosses will not make drastic moves such as slashing their payrolls or limitRA ing production.

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DATA IN FOCUS

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Economic growth

Surprisingly low GDP growth in third quarter next week’s Monetary Policy Council meeting,” they said in an e-mailed statement. “Although we stick to our expectation that the NBP will deliver a 25 bp rate cut next week, the chance that it will deliver a larger (50 bp) cut is now 50/50. We actually think that a more aggressive rate cut would be appropriate given the sharp slowdown of the economy.” Prime Minister Donald Tusk weighed in on the figures as well, telling the press, “We predicted this not-very-optimistic scenario would occur at the end of the year, and that’s why we took action to prevent a recession from entering the gates of our country.” (For more on Poland’s GDP and interest rates, see p. 9) MM, AK

Poland's GDP growth rate, Q3 2009-Q3 2012

Poland’s unemployment rate inched up to 12.5 percent in October from 12.4 percent in September, according to data from the country’s Central Statistical Office. The data were in line with analysts’ forecasts. The increase was expected due to seasonal factors – as the weather gets colder, construction jobs dry up. Nevertheless, the economic downturn and the uncertainty in Europe have clearly hit the employment market. In October 2011, unemploy-

ment was at 11.8 percent. In October 2010, it was 11.5 percent. This year, unemployment hovered above 12.5 percent until June, when it fell to 12.4 percent. The October data showed some huge regional differences. The Wielkopolskie voivodship, home to the city of Poznaƒ, recorded an unemployment rate of just 9.2 percent, while the WarmiƒskoMazurskie voivodship, where Olsztyn is located, posted a whopping 19.8 percent unem-

ployment rate. Overall in Poland, the number of people without a job increased to 1.995 million. “The data did not change our baseline scenario of the macroeconomic situation,” said economists from Bank Zachodni WBK, who added that they expect unemployment to reach as high as 13.5 percent by year-end. Poland’s Ministry of Labor and Social policy predicts end-of-year unemployment will come in at 13 percent. AK

Inching upwards, again Poland's unemployment rate, October 2010-October 2012 14

5 11 Oc

t. ' 10 v. ' 10 De c. '10 Jan . '1 1 Feb . '1 1 Ma r. ' 11 Ap r. ' 11 Ma y '1 1 Jun . '1 1 Jul . '1 1 Au g. '11 Se p. '11 Oc t. ' 11 No v. ' 11 De c. '11 Jan . '1 2 Feb . '1 2 Ma r. ' 12 Ap r. ' 12 Ma y '1 2 Jun . '1 2 Jul . '1 2 Au g. '12 Se p. '12 Oc t. ' 12

4 3

Source: Central Statistical Office

Cigarettes, grains and coffee dominate Polish exports

20 1 Q2 0 20 1 Q3 0 20 1 Q4 0 20 10 Q1 20 1 Q2 1 20 1 Q3 1 20 1 Q4 1 20 1 Q1 1 20 1 Q2 2 20 1 Q3 2 20 12

00 9 20 09

Source: Central Statistical Office

Poland's top 10 leading exports by percentage growth between 2004 and 2011 1,500 1,200 900 600 300

ice s Sp

vis io

Tea

Tel e

Eg gs et ele arm p h ace on es uti cal pro du cts Tur bin es

Lan dlin

Gra in Co ffe e

roasts, refines and packages them for export. Since joining the EU, Polish exports have grown by 128 percent, from €60 to €137 bilGP lion.

Export kings

tte

that sales will continue to show greater weakness over the next several months. Between December 2010 and May this year, retail sales growth never dropped below 8 percent. June brought a significant slowdown though, to just 5.5 percent growth. September marked the first time it had dropped below 5 percent in 22 months. Poland’s dynamic domestic consumption is widely credited as being one of the most important factors to have kept it out of recession during the global economic crisis.

Poland became an EU member Coffee exports, meanwhile, increased by 722 percent during the same period. Poland imports coffee beans from Brazil and Vietnam, then

are

very positive in October (+2 working days y/y, which added about 1.6 percentage points to the sales reading) and it masks the weakness of demand,” said Rafa∏ Benecki, chief economist for Poland at ING, in an e-mailed statement. “Calendar effects should still ensure a positive nominal figure in November, but December should be much worse as the calendar effect (-2 working days y/y) will amplify the negative underlying trend in incomes, so we may see the slide of sales in y/y nominal terms,” he added. Most other analysts agree

Between 2004, when Poland acceded to the European Union, and 2011, Polish cigarette exports have increased by 1,201 percent, according to recently released data. Poland’s statistical agency said the country has exported €1.2 billion worth of cigarettes to 72 countries over the period. The majority of these exports head to Japan, Indonesia and Mauritius. Poland is the second-largest cigarette producer in the EU. Food has also been a major Polish export hit in recent years. Of the 20 fastest-growing Polish export products over the last seven years, 11 are foodstuffs. The leader is grain – mainly wheat – whose sale was around 803 percent higher at the end of 2011 than when

Cig

Retail sales growth holds steady Retail sales in Poland grew by 3.3 percent in October, slightly faster than the 3.1 percent growth in September but lower than the 3.7 percent market consensus prediction. Helping to push the sales figures up was a significant increase in car sales, as well as increases in sales in grocery stores and non-specific retailers. Weakness was seen in sales of clothing and shoes, and especially in gasoline – though this latter factor was mostly the result of lower prices on the market. “The calendar effect was

Unemployment rises slightly in October

Steep downward slope

Poland’s gross domestic product grew by 1.4 percent yearon-year, the country’s Central Statistical Office announced on Friday. The growth was much slower than the 1.8 percent consensus market forecast, and showed a significant slowdown compared with economic growth of 2.4 percent y/y in the second quarter. The figure marks Poland’s slowest rate of growth since the second quarter of 2009. The biggest drag on growth was weaker-than-expected private consumption – growing at its slowest rate since 2003 at just 0.1 percent, compared with 1.2 percent in the second quarter. Shrinking domestic demand (-0.7 percent) and investments (-1.5 percent) also played their part. Commenting on the weak GDP growth figures Agata Urbaƒska, an economist for Eastern Europe at HSBC, said, “This is a second consecutive big downside surprise from GDP data. In the second quarter that was mostly on the back of inventories but now, more importantly, it is driven by a strong slowdown of pri-

vate consumption.” “These data call for a downward revision of forecasts for the upcoming quarters,” said Maciej Reluga, chief economist of Bank Zachodni WBK. “They also provide strong arguments for further monetary policy easing (especially when there is no room for accommodative fiscal policy).” He added that the data release caused the z∏oty to weaken and and the debt market to strengthen, amplifying market expectations for upcoming interest rate cuts. Analysts at Danske Bank echoed the expectation for more rate cuts. “Today’s worsethan-expected GDP reading increases the chances that the [National Bank of Poland] will take more aggressive steps at

Q3 2

Poland’s economy grew by 1.4 percent in the third quarter, much slower than expected

DECEMBER 3-9, 2012

Source: Central Statistical Office

THE NEXT EDITION OF MADE IN POLAND IS AVAILABLE NOW W WARSAW BUSINESS JOURNAL’S A ANNUAL PUBLICATION ON POLISH EXPORTS P

OPINION & ANALYSIS

DECEMBER 3-9, 2012

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The Christ of nations and Poland’s entitlement mentality

oland’s politicians and media have spent much of their time recently speculating as to whether or not Poland will receive the z∏.300 billion in EU cohesion funds that Prime Minister Donald Tusk promised he would obtain in negotiations on the 2014-2020 EU budget. From the tone of the discussion you could be forgiven for thinking that a few billion z∏oty less would mean a humiliating defeat for the prime minister and a slap in the face of Poland, which after all “deserves” the money for its decades of suffering under communism and other historical injustices. Jaros∏aw Kaczyƒski, a former prime minister and the current leader of Poland’s largest opposition party, Law and Justice (PiS), was blunt: “We deserve , without anybody doing us any special favors, about z∏.70 billion more [than we received in the 2007-2013 budget].” That would come to about z∏.344 billion, at today’s exchange rates.

The Christ of nations Mr Kaczyƒski represents those Poles who believe that Poland is the Jesus

than most. But none of that means that leaders like UK Prime Minister David Cameron or German Chancellor Angela Merkel are somehow trying to betray Poland. Instead, they are simply trying to make sure their countries pay a bit less into the EU’s coffers, an understandable stance during an economic crisis. What is really surprising is that they are not demanding even deeper cuts. While the Polish government should certainly fight to get the most it can out of the next budget, it is time Poles stopped acting as if they had granted the EU a loan it needs to pay back.

Christ of nations – a theme that has long been part of Polish national philosophy and culture. When it comes to recent history, the thinking goes like this: Poland, a country that suffered like no other at the hands of the Nazis, was betrayed at the post-World War II Yalta conference when the victorious allies essentially condemned it to Soviet domination, and thus deserves plenty of compensation from Western Europe. But what is disheartening is not just that Mr Kaczyƒski’s nationalist supporters share this view. The chorus of “we deserve it” is present in the language of politicians and journalists across the ideological divide. This smacks of immaturity, and results in the conclusion that those Western European leaders hoping to cut the EU budget are somehow out to cheat Poland out of what it rightly should receive. Yes, Poland was essentially betrayed after World War II. Yes, it was in Poland that the Solidarity movement, which was instrumental in causing the collapse of the communist system, originated. Yes, Poland uses those EU funds more efficiently

Join the queue The list of countries that have been cheated or betrayed in the past is a long one. And not many of them are now receiving tens of billions of euros in free money. Poland was given €67 billion in EU cohesion funds for the years 2007-2013. This time it will probably be given some €70 billion. Which other country has received that much in the last two decades? It’s time to start appreciating that funding, rather than acting like a

SHUTTERSTOCK

Remi Adekoya

spoiled child who thinks two chocolate bars instead of three is a punishment. It would be smarter to use the economic argument, namely that a richer Poland will mean a better market for European products, rather than playing the victim. On no other continent would a 27nation economic and political bloc have been possible and on no other continent would the idea of intercountry cash transfers have been taken seriously.

It is true that Poland has suffered much throughout history. But paradoxically enough, its recent suffering has resulted in it being showered with billions of euros. Poland may or may not be the Christ of nations – but it’s time to stop treating its Western European allies like Pontius Pilate. ● Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Private wealth and European solidarity Peter Jungen

little-discussed but crucial factor in the debate over wealth transfers from Europe’s more economically sound north to its troubled south is the relationship between public debt, GDP, and pri-

“Before seeking or accepting help from the rest of Europe, countries should employ all available domestic resources” vate wealth (households’ financial and non-financial assets, minus their financial liabilities) – in particular, the ratio of private wealth to GDP in the euro zone countries. While the European Central Bank’s bond-purchasing scheme has calmed financial markets to a considerable extent, some European economies – including Italy, Spain,

Greece, and Portugal – are still at risk, because they are not growing fast enough to narrow their deficits and stem the growth of their national debts. The grim irony here is that the ratio of private wealth to GDP in some of the countries that are in need of support from the ECB and northern euro zone members is equal to or higher than that in more solvent countries. Consider Italy, which has the highest ratio of private wealth to public debt of any G-7 country, and is some 30 percent to 40 percent higher than in Germany. Likewise, Italy and France share a private wealth/GDP ratio of five to one, while Spain’s – at least before the crisis hit the country in full – was six to one. By contrast, the ratio in Germany, Europe’s largest creditor, is only 3.5 to one. This discrepancy is at the heart of the question with which European policymakers are now grappling: Should taxpayers in debtor countries expect “solidarity” – or, more bluntly,

money – from taxpayers in creditor countries? Why should taxpayers in creditor countries have to take responsibility for financing the euro crisis, especially given that high private wealth/GDP ratios may result from low tax revenues over time, while lower ratios may reflect higher tax revenues?

Home front Before seeking or accepting help from the rest of Europe, countries should employ all available domestic resources. Debtor governments should call upon their own taxpayers to fund some of the national debt in order to avoid higher interest rates in credit markets. They could, for example, offer an incentive in the form of a 3-4 percent interest rate on bonds, and even make them tax-free eventually. This would allow Italy, Spain, and even Greece to finance their national debts at a more reasonable, sustainable cost. Citizens’ voluntary financing of their countries’ national debt would

be the most effective means of reducing strain on Europe’s financial resources, while simultaneously serving as a powerful symbol of solidarity. By contrast, turning creditor-country citizens’ tax payments into forced subsidies of other countries’ debts would undermine European cohesion. Nordic countries, for example, cannot be expected to fund other countries’ debts in the long term – especially if those countries have not made full use of their own resources. In fact, while concerns over the euro zone’s survival tend to focus on its indebted members, Europe’s monetary union is at risk of losing one of the few members that still enjoys a triple-A credit rating: Finland. Given Finland’s difficult domestic political situation, its citizens may look to Denmark and Sweden – which boast rapid growth and low national debt, and do not pay into the European Financial Stability Facility or the European Stability Mechanism – and decide that euro zone membership

costs too much and is no longer worthwhile. Italy and Spain have enough resources to rescue themselves, and to secure the time needed to restructure their economies. Indeed, even after taking on the entire national debt, their private wealth/GDP ratios would still be higher than they are in some northern European countries. Escaping the euro crisis is less a matter of economics than of political will. By calling upon citizens to finance their own countries’ national debts, southern Europe’s leaders can fix their own economies and strengthen the European principles of solidarity and subsidiarity. ● Peter Jungen, an entrepreneur and angel investor who has co-founded and invested in many start-up companies, is a member of the Governing Board of the Institute for New Economic Thinking. Copyright: Project Syndicate, 2012. project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

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Mostostal Warszawa woes Troubled construction company Mostostal Warszawa will record a larger net loss in Q4 2012 than in the period of January-September, according to CEO Marek Józefiak. In the first three quarters of the year, the company had z∏.2.45 billion in revenue and a z∏.33.1 million net loss. In 2011 the group ended the year with close to z∏.3.4 billion in turnover and a z∏.124.5 million net loss. Mr Józefiak said that 2013 will be particularly difficult for the construction sector, with a 20-30% drop in the value of the market expected.

Chopin Airport investments Warsaw’s Chopin Airport is planning to invest more than z∏.500 million in 2013. The funds will be used to renovate the long runway and, in particular, to reinforce its surface. The money will also be used to rebuild taxiways, to enlarge the airport’s de-icing platforms and to construct new ramps. ●

DECEMBER 3-9, 2012

Energy solutions

Waste is power

Piotr Âlusarski

Transforming what ends up in rubbish dumps into energy has the potential to turn a problem into a solution Kostrzyca, a small village in southwestern Poland, is home to an innovative installation that in a few months is set to begin transforming waste into high-energy liquid fuel. The product is targeted at petrol stations as a biocomponent added to traditionally produced diesel oil. Rubber and car tires, all kinds of plastic and PVC, as well as trash from households will be turned into fuel there. The site will accept any material of organic and mineral origin containing hydrocarbons, in order to make synthetic diesel, kerosene and benzene. A prototype technology that facilitates this process is known as catalytic pressureless depolymerization. So far only four such installations have been built in the world – in Germany, where the technolo-

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Turning refuse into power could help Poland meet EU regulations on waste gy comes from, Spain, Canada and Mexico. Each one of them is able to manufacture 1,000 liters of fuel from three and a half metric tons of straw.

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The investor, Alphakat Diesel, estimates that one liter of such fuel will cost z∏.3, including excise. And the product’s purity is up to 2.5 percent higher than what cars are usually refueled with. Mo-BRUK, one of the first Polish companies producing alternative, refuse-derived fuels (RDF) has just expanded its facility in Karsy, Âwi´tokrzyskie voivodship, making it the largest one in the country. It can process up to 350 metric tons of trash a day, a quantity generated yearly by a village of 1,000 inhabitants. The pellettype fuel this trash creates is burned as a tenfold-cheaper coal equivalent in the furnaces of cement mills in the south of Poland. With financial aid from the EU Innovative Economy program, the site also generates electricity for internal use from types of waste that otherwise would have been completely destroyed.

Recover and convert “The amount of waste created in the EU is rising constantly, creating harmful effects on human health and considerable problems for the environment,” reads a recent statement by the European Commission, expressing concern at the three billion tons of trash Europe generates each year. For this reason all members of the EU are now being urged to put more emphasis on swift and planet-friendly waste management. Poland, being one of the EU’s larger members, might find its panacea in treating heaps of unsortable garbage as a powerful, sustainable resource.

Nearly a decade ago, while ratifying its EU accession treaty, Poland made a pledge to limit the quantity of waste going to landfills by half by mid-2013. Over the following seven years, this amount should be reduced to 35 percent. Moreover, the waste must be subject to segregation so that only the biodegradable material is disposed of, while the other materials – glass, paper, plastics or metals – is retrieved and continually utilized. What is left from that should undergo biological or thermal processing. But Poland isn’t even close to fulfilling those goals. In April this year the European Commission asked the EU Court of Justice to impose

of Justice is expected to dismiss the the European Commission’s request to fine Poland. The Ministry of Environment has remained calm. “We are confident [that we will be able] to remove the reason for the breach so there will be no financial penalties imposed on Poland,” ministry spokesperson Magdalena Sikorska said in a statement.

Cleaning up the mess Poland’s plan is to build 11 refuse incinerators, one for every city whose population exceeds 300,000. They’ll have a total processing capacity of 2.4 million tons per year. However, according to business consultancy Deloitte, the implementation of the Frame-

“The amount of waste created in the EU is rising constantly, creating harmful effects on human health and considerable problems for the environment” financial penalties on Poland amounting to z∏.275,175 per day for the delayed implementation of the EU Waste Framework Directive into domestic law. Further non-compliance may lead to larger fines. In spring of 2012, the Waste Act was passed by the Polish parliament, adjusting Polish regulations to those applicable in the EU. The document will work as a “mother act,” meaning it will thoroughly regulate the matter of waste management and adapt the relevant EU regulations to Polish legislation. If everything goes as Poland hopes, the EU Court

work Directive in Poland will next year require that the country dispose of 4.7 million tons of unwanted material in a manner other than landfilling. In the opinion of Micha∏ Dàbrowski of the Polish Chamber of Waste Management (PIGO), incinerators alone will not do the job, since they do not apply to the requirement of retrieving and recycling 50 percent of plastics, metals, paper and glass, which the EU obliges Poland to meet. In this context, the Karsy plants, where liquid and solid RDF fuels are made, may be of critical value for Poland.

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Andrzej Bartoszkiewicz, an engineer from Nowa Sól, in the Lubuskie voivodship, believes he too has a solution. His original system of waste collection and recycling, called Eko AB, works by building special pavilions to replace bin shelters on Polish housing estates. Employees at these pavilions would segregate the trash, and the refuse would then be sold to recycling companies and compost producers, while the rest – 20-35 percent – goes to a landfill or is incinerated. The system creates jobs thanks to the money stream generated by sales and waste transportation fees, which become smaller the more “commodity” gets collected and sold. “Through segregation, Eko AB lets you obtain raw materi-

als for the production of renewable energy in an amount several times bigger than by bulk incineration,” said Mr Bartoszkiewicz. “Just 8,000 [pavilions] avert the threat of fines,” he said. One such building costs z∏.100,000 and processes up to 25 tons per day. An incinerator with a yearly capacity of between 100,000-200,000 tons costs z∏.250-700 million. “Eko AB has been successfully tested over the course of five years in P∏ock and Bytom Odrzaƒski,” said the inventor. Other local governments are waiting and are considering various options. But there is no time to lose. “Only strong and very consistent actions could prevent Poland from paying penalties,” said Janusz Miku∏a, an environmental specialist and former deputy

Final destination Where Poland's 12 million tons of municipal waste ends up

1% 7% Landfill 14% Recycled

Biologically treated 78% Incineration Source: Eurostat

www.wbj.pl

minister of regional development.

Fiat production on hold

From scraps to watts

The Fiat factory in Tychy, in Poland’s Silesia voivodship, stayed completely silent throughout the whole of last week, reported Rzeczpospolita. The company had decided to stop all the production lines at the plant until November 30. The reason for the break was the drastic decrease in the number of orders. In October, sales of new passenger cars in Italy – the most important market for the plant in Tychy – were some 20% lower than in the corresponding period of the previous year.

“Municipal waste is by far the largest and most environmentally problematic type,” explained Dariusz Brodowicz of Ecoon, a waste-to-energy technology distributor. Mr Brodowicz points out that in Poland 40 percent of municipal waste is comprised of peelings, rotten fruit and vegetables, the remains of other food or wet paper and cardboard. All of these can be transformed into an organic pulp, which could become a basis for the production of biogas and resulting electricity or heat. Another 60 percent of what we throw out, added Mr Brodowicz, contains materials such as plastics, textiles, wood or non-ferrous metals. This material can be incinerated to obtain electrical or thermal energy – or used in facilities like cement mills, thermalelectric power stations and brickyards in the form of highquality alternative fuel. Such fuel is made only from waste that for technical or economic reasons cannot be recycled but is still too precious to be disposed of. “A classic example is imported second-hand clothing unfit to be sold, which, however, is an excellent raw material for manufacturing refuse-derived fuel,” states

SHUTTERSTOCK

DECEMBER 3-9, 2012

Poland plans to build 11 refuse incinerators Ârodowisko (Environment), a magazine. A recent report on waste management in Poland by Deloitte highlights that the average energy value of municipal waste is similar to the energy value of lignite available in Poland (8 to 14 MJ/kg) and that just one plastic bag allows for the recovery of enough energy to power a 60-watt bulb for 10 minutes. A forecast by the company says that if one-third of such waste generated annually is thermally treated in a typical incineration plant with a processing capacity of 250,000

tons a year, then it is possible to retrieve more than two terrawat hours (TWh) of electric current and about 6 TWh of heat. The said one-third, argues Deloitte, has an energy value comparable to 1.3 billion cubic meters of natural gas, which accounts for about 13 percent of the annual import of this resource to Poland. “Municipal waste is a valuable local fuel which may be used for environmentally friendly and energy efficient combined generation of electricity and heat,” reads the report. ●

Polish firms in South America Representatives of more than 50 Polish companies took part last week in an economic forum in Sao Paulo, Brazil, organized on the occasion of an official visit by Poland’s Foreign Minister Rados∏aw Sikorski. During his visit, Mr Sikorski signed cultural, economic and legal agreements with Brazil. ●

LAW

www.wbj.pl

DECEMBER 3-9, 2012

Legal Forum

Timeshares get a new lease on life Jaros∏aw Szewczyk Associate at Biedecki Biedecki i Partnerzy Just imagine yourself relaxing in the lawns of a stunning villa, savoring the best Spanish or Bulgarian wines, basking in the sun and relishing the finest holiday ever. Then envisage yourself as an owner (actually a part-owner) of this breathtaking condo, or at least a permanent tenant. What would you say if you could use this serene location every year for, say, the next 20 years? But what if you’re not keen on taking vacations abroad? You can always decide to explore Polish nature in the same manner. Thanks to timeshares it is now easier than ever to do this. Everyone can find themselves a wonderful place to take a vacation without having to worry each spring about what to do during the summer and how much it will set you back. What if you easily get bored of the same location and you want to explore other enchanting places as well? You can always exchange

your location with other timesharers, either independently or through a timeshare exchange agency. What if you are an avid traveler and you need more flexibility? You want to take part in various activities, travel to different places and take advantage of a vast number of vacation opportunities? You can always enroll in a benefits system or enter into a long-term holiday product.

The new EC directive Since the timeshare concept has evolved in recent years and completely new holiday products similar to it have appeared on the market, the European Commission decided to initiate works on a new directive on timeshares. As a result a new directive was enacted, called the 2008/122/EC Directive of January 14, 2009 on the protection of consumers in respect of certain aspects of timeshares, long-term holidays, prod-

ucts, and resale and exchange contracts.

Look before you leap The new legislation was needed for several reasons: First of all, after more than a decade from the passage of the first directive on timeshares (Directive 94/47/EC) it was obvious that certain aspects needed to be updated and clarified, not just for preventing the development of products aimed at circumventing the Directive but also to foster the growth of timeshares and ancillary products. Secondly, due to its being the kind of business where plenty of solicitation takes place, salespeople rush customers or even scam them, meaning it was necessary to implement certain safeguards to protect consumers from predatory or plainly unfair marketing practices. Thirdly, existing regulatory gaps

and loopholes impeded the development of this form of holiday planning. Vast differences between member states made it extremely difficult to combine timeshare exchange programs established in different EU countries. Fourthly, the new Directive was aimed at ensuring that consumers are fully aware of all the consequences of the contracts they enter into. The contracts covered by the Directive must be written in plain and intelligible language, they cannot purport to present a holiday product as an investment product, they must apprise consumers of all costs, and include the right to withdraw from an agreement, and disclose length periods.

Revision of the timeshare law In order to implement the 2008/122/EC Directive, Poland enacted in September 2011 a new act on timeshares, which replaced

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market. The content is created in consultation with Warsaw Business Journal's editorial staff.

Legal News Contact: Dorota Zab∏ocka dz@pnplaw.pl

Changes to the Civil Procedure Code The government has adopted assumptions related to draft changes to the act governing the Civil Procedure Code. The aim of the proposed changes is to speed up court proceedings. Moreover, civil proceedings are to be computerized to a greater extent, as stipulated in the draft. It is assumed that each verdict will be saved in an ICT system and signed with a safe digital signature. Moreover, an electronic procedure for submitting procedural writs is to be introduced, not only in cases initiated electronically, but also when it comes to traditional civil proceedings. Court proceedings will be sped up as a result of regulations that make it possible to prepare justifications of judgements in electronic form. Upon the motion of a creditor it will be possible to conduct an enforcement sale of moveable property through a special ITC system where public auction notices will be published. Additionally, provisions allowing the electronic seizure of bank accounts are to be introduced, which will lower costs and speed up seizure procedures. Banks will be obliged to create and

launch a system for conducting seizures of claims from accounts.

Foreign exchange draft act The minister of finance has presented draft legislation to change the act on public finance and the act on VAT. The proposed changes are designed to limit the influence of foreign exchange fluctuations on the size of the public debt, and to finance the state budget. The draft change stipulates the conversion of foreign-denominated public debt into z∏oty using average rates of foreign currencies published by the National Bank of Poland. This is to replace the use of exchange rates taken on the last day of the year, which increases the volatility of the z∏oty. In case the calculation shows that the proportion of public debt to GDP is lower than 50 percent or 55 percent, spending limitations and VAT tax increases stipulated in the act on public finance will not come in to force. The above amendments mean that the Ministry of Finance will also be obliged to publish all of the above mentioned data in the Journal of the Republic of Poland (“Monitor Polski”) at the end of each budget year. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

the previous legislation and took effect on April 28, 2012.

Basic consumer rights Within 14 days after entering into an agreement, each consumer has the right to withdraw from the timeshare contract, long-term holiday product, or resale and exchange program, without having to justify the withdrawal and without bearing any cost. Consumers do not have to pay any advance payments to traders or to any third party before the end of the withdrawal period. For resale contracts, any payment may be due and payable only after the actual sale or the resale has taken place. If a consumer withdraws from a contract where the price is covered by a consumer loan, the credit agreement gets simultaneously terminated at no cost to the consumer (the same applies to all ancillary contracts). ●

Warsaw continues to attract by far the most office investment in CEE

Atrium Felicity in Lublin will have the largest Auchan hypermarket in the region

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 re 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

Colliers with new Warsaw department Colliers International has launched a facility management department at its Warsaw office. The department is headed by building consultancy director Jonathan Cohen and will work alongside the project management and green buildings certification departments. The facility management department is the third new department established by Colliers in Poland this year. It provides technical support, on-site maintenance, statutory periodic inspections and fire monitoring of buildings. ●

In this issue West Station in Warsaw . . . . . .15 West Gate in Wrocław . . . . . . .15 CEE office investment . . . . . . .16 Property-related stocks . . . . . .16 Grupa Waryński plans . . . . . . . .17 Ideal Idea III . . . . . . . . . . . . . . . . .17 Atrium Felicity mall . . . . . . . . . .17 Residential investors . . . . . . . .17

HB Reavis and PKP reveal details of railway station-office project in Warsaw The scheme will be developed in three phases by the first quarter of 2018 Developer HB Reavis and Polish State Railways (PKP) have revealed the details of a joint mixed-use investment which will involve the delivery of a new Warsaw West railway station and a major office complex in the Polish capital within the next few years. The new Warsaw West railway station building will be located on Warsaw’s Al. Jerozolimskie, slightly south of the existing facility, which, PKP admits, is today far behind the other Warsaw railway stations in terms of both aesthetics and functionality. “Cooperation with private investors is giving us a chance for a radical change and the successful undertakings in Poznaƒ and Katowice are allowing us to hope that a modern Warsaw West will also

The complex will deliver 64,000 sqm of leasable space welcome passengers in 2015,” said Piotr Ci˝kowicz, a member of Grupa PKP’s management board. He pointed out that the company owns hundreds of

Next to the new Warsaw West railway station a new office complex called West Station and comprising two buildings offering a total of 64,000 sqm of leasable space

thousands of hectares of land, often in key locations in major Polish cities and agglomerations, and wants private investors to help it use their potential.

and underground parking spaces for approximately 1,300 cars will be developed. “The new Warsaw West station and the West Station office complex are for us one of the key projects in Poland. We have put much effort [into ensuring] the designed facilities [are] friendly and functional and meet the highest standards,” said HB Reavis Poland CEO Stanislav Frnka. He added that the complex will be conveniently located close to one of the largest junctions in Warsaw and also not far from the capital’s downtown. The offices are expected to be BREEAM-certified. The whole investment is set to be developed in three phases, with the new railway station scheduled to be completed a year after the building permit is granted (that’s expected in Q1 2014). The first office building should be finished by Q1 2016 and the second by Q1 2018. Adam Zdrodowski

Office

Echo launches West Gate in Wroc∏aw The scheme will deliver 16,000 sqm of new class-A office space to the city Warsaw Stock Exchange-listed developer Echo Investment has launched construction on its West Gate office project in Wroc∏aw, Lower Silesia. The class-A scheme will comprise 16,000 sqm of leasable space. The West Gate development is located at the intersection of the city’s ul. Lotnicza, ul. Na Ostatnim Groszu, ul. Legnicka and ul. Milenijna, an area which, according to Echo Investment, ensures easy access to Wroc∏aw’s center, as well as its airport and the A8 motorway.

The design of the building, prepared by the Kielce-based ARCAD studio, calls for the delivery of an L-shaped sixfloor structure with an underground parking lot whose facade will be dominated by large glazed areas. “In accordance with Echo Investment’s policy regarding green construction, the project will soon obtain a BREEAM certificate,” Rafa∏ Mazurczak, director of the commercialization and marketing team in the office and hotel department of Echo Investment, said in a statement. Meanwhile, Echo Investment has just obtained an occupancy permit for the first phase of its Aquarius Business

House office project in downtown Wroc∏aw. The scheme will comprise two seven-storey buildings offering a combined 25,000 sqm of office space when completed. The second phase of the development is scheduled for delivery in October next year. Already secured tenants of the complex include Tieto Poland and PwC, with the investment expected to also feature a number of non-office functions. The project has recently obtained a BREEAM Interim certificate of energy efficiency and environmental performance. The company is yet to secure a final BREEAM evaluation in the future. Echo Investment has to

COURTESY OF ECHO INVESTMENT

A new capital group called Holding Tacit Development and comprising Tacit Development, Plac Katedralny and Jasnier has recently been established. Micha∏ Borowski, president of the former company, has become head of the new entity. The value of Holding Tacit Development’s own capital is now estimated at z∏.117 million. The group is expected to hold assets worth more than z∏.1 billion in 2014/2015, Tacit Development said in a statement. The largest investments of the holding include the Cosmopolitan Twarda 2/4 residential tower in Warsaw.

Mixed-use investments

COURTESY OF CISZEWSKI MSL

Holding Tacit Development formed

DECEMBER 3-9, 2012, LI 17/48

The scheme is set to be BREEAM-certified date completed more than 90 real estate projects across Poland which total approximately 800,000 sqm of space.

The company is also active in the Hungarian, Romanian and Ukrainian markets. Adam Zdrodowski

Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

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DECEMBER 3-9, 2012

Office investment

A lack of prime assets prevents investors from venturing outside the Polish capital Warsaw is attracting by far the most attention from investors looking for office buildings in Central and Eastern Europe, with many of the other major locations in the region suffering from the lack of the right products. “CEE seems to have shrunk to one city, Warsaw,” said a participant in last week’s New Europe GRI 2012 real estate event in Warsaw, whose name and company affiliation we cannot cite due to the Chatham House Rule formula of the meeting. Representatives of real estate investors active in Poland who took part in the “Offices in CEE – Does the desert start outside Warsaw?” discussion of the GRI event pointed out that the lack of prime office assets is limiting investment activity outside the Polish capital. Most office transactions have recently been taking place in Warsaw where the number of good assets is highest. It is also Warsaw that

boasts the largest number of planned office projects in the whole region. Many developers have announced high-rise office projects in the Polish capital in recent months which, if developed, would deliver hundreds of thousands of square meters of new office space in the city in the upcoming years. There were some worries voiced during the discussion about whether the Warsaw market will be able to absorb such a large amount of new stock. The worries were, however, countered with the argument that not all of the planned structures will actually be built. Some of the companies behind the schemes lack the necessary experience and, even more importantly, funds. However, there were signals that some investment funds are now considering helping in the creation of new assets by taking more risk and investing in developer projects.

Regional desert Other CEE capitals have seen less activity of late, not to mention the Polish regional cities where office investment transactions have become very rare. This is not the result of low

investor interest, but rather the lack of adequate products. Buyers looking at regional cities are only interested in prime assets, and finding them is often a major problem. The transactions that are expected to happen outside Warsaw in the near future will concern property whose owners fear their assets are getting old but have no funds to upgrade them. Of course, there are developers active in the major regional cities, but the growth of these markets is somewhat limited due their unclear demand prospects. Some of those markets rely heavily on BPO sector tenants and questions remains about how sustainable the demand from that sector will be. Meanwhile, the limited number of investors in regional cities means that there is almost no activity there at all. Even though some major investors would like to be present in such markets, they have worries about issues including exit strategies. A representative of a large investment fund conceded that for the sake of diversification his company would gladly invest in a regional city. He added, however, that the fund

SHUTTERSTOCK

Warsaw still dominant in the CEE region

New office towers are set to join the Warsaw skyline in the upcoming years has a conservative approach and is not going to be a first mover. He also noted that opportunity buyers usually plan to keep an asset for two to three years. In the case of the regional markets, they are

faced with the question of whether there will be someone to sell the asset to after that period. The lack of benchmarks is a problem, too. The situation could be helped by the emergence of local buyers, which will proba-

bly take some time. Pension fund investment in Poland, for one, is still nascent and the people involved in it often do not have an adequate knowledge of the real estate market, a participant at the meeting Adam Zdrodowski noted.

Property-related stocks Security

Closing price on Nov 29

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

62.50

4.52

45.85

88.35

-11.97

25,530,098

1,595.63

CELTIC

3.74

-1.58

3.80

19.38

-79.67

34,231,466

128.03

DOMDEV

32.19

7.34

23.51

42.80

0.91

24,715,272

795.58

ECHO

5.20

6.12

3.05

5.20

56.63

420,000,000

2,184.00

ELBUDOWA

114.80

-1.37

87.00

120.00

18.35

4,747,608

545.03

ENERGOPLD

0.31

-8.82

0.17

2.30

-85.97

70,972,001

22.00

ERBUD

17.00

6.58

11.33

23.20

-1.11

12,677,956

215.53

GANT

3.08

7.69

2.68

9.85

-48.49

20,120,000

61.97

GTC

8.52

3.15

5.20

11.40

-5.23

319,372,990

2,721.06

HBPOLSKA

0.02

0.00

0.01

1.43

-97.62

210,558,445

4.21

JWCONSTR

4.17

19.83

3.26

8.40

-13.66

54,073,280

225.49

LCCORP

1.12

2.75

0.85

1.48

23.08

447,558,311

501.27

MARVIPOL

8.68

-1.92

6.20

11.00

-1.92

36,923,400

320.50

MIRBUD

1.26

9.57

0.98

2.68

-42.73

75,000,000

94.50

MOSTALWAR

11.95

-0.83

11.30

22.21

-41.42

20,000,000

239.00

MOSTALZAB

1.15

-2.54

0.81

1.80

-7.26

149,130,538

171.50

ORCOGROUP

10.50

-10.64

6.36

19.55

-26.68

107,840,962

1,132.33

PBG

6.08

40.42

3.36

83.90

-91.44

14,295,000

86.91

PLAZACNTR

1.62

-16.92

1.62

2.94

-16.92

297,181,703

481.43

POLAQUA

3.50

-14.22

3.30

8.18

-49.28

27,500,100

96.25

POLIMEXMS

0.60

-10.45

0.48

2.04

-56.20

521,154,076

312.69

POLNORD

10.60

-4.42

10.00

19.85

-33.29

25,633,027

271.71

RANKPROGR

11.67

3.27

7.10

16.97

32.61

37,183,550

433.93

ROBYG

1.46

-10.98

1.08

1.75

21.67

257,935,500

376.59

RONSON

0.81

-4.71

0.61

1.15

-8.99

272,360,000

220.61

TRAKCJA

0.64

-5.88

0.64

1.44

-48.80

232,105,480

148.55

ULMA

42.00

3.96

37.20

74.80

-31.15

5,255,632

220.74

UNIBEP

4.88

-6.15

3.60

6.28

-6.87

34,021,684

166.03

WARIMPEX

3.61

-2.43

2.64

4.62

-17.01

54,000,000

194.94

ZUE

5.80

7.41

5.07

8.50

-23.18

22,000,000

127.60

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DECEMBER 3-9, 2012

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First Holiday Inn Express in Warsaw

Mixed-use investments

Construction on Ideal Grupa Waryƒski selects partners Idea III in Warsaw for large-scale Warsaw scheme gets underway The project will comprise residential and office space

land that is fully owned by Grupa Waryƒski. The development will comprise around 100,000 sqm of usable space, approximately 20-30 percent of which will house offices. Grupa Waryƒski intends to carry out the investment through two separate joint ventures with the selected partners. The formula is meant to optimize profits and ensure a sufficient level of security for the whole undertaking, the company said in a statement. The choice of the partners was largely influenced by their

Grupa Waryƒski has selected developers Polnord and Dantex as business partners with whom it wants to develop a major residential-office project in Warsaw within the next few years. Investment agreements with the companies are expected to be signed by the end of 2012. The planned scheme will be located on ul. Jana Kazimierza in the capital’s Wola district, on over 70,000 sqm of

ample experience in the Warsaw market, stated Jaros∏aw Jankowski, president of the group’s management board. “We hope that the selected partners will support us in an efficient development of our land,” Mr Jankowski said. Formerly a construction machinery producer, Grupa Waryƒski wants to become increasingly active in the property market in the upcoming years. The company plans to deliver on its own a 9,000-sqm office building in Warsaw’s Wola district in the first half of Adam Zdrodowski 2015.

Atrium European Real Estate, the investor behind the underconstruction Atrium Felicity shopping center project in Lublin in southeastern Poland, has announced that the mall will be anchored by an Auchan hypermarket. The retailer’s store will occupy 20,000 sqm of space in Atrium Felicity. “This will be the largest facility of this kind in the region,” Katarzyna Cyz, CEO of Atrium Poland Real Estate Management, said in a statement. The Atrium Felicity development is currently almost 80 percent commercialized. Major tenants of the investment will include DIY retailer Leroy Merlin, consumer electronics retailer Saturn and consumer electronics and home appliances retailer RTV Euro AGD. With its 75,000 sqm of

COURTESY OF MEDIADEM CONSULTING

Atrium secures Auchan hypermarket for Lublin mall

Polish small-business-unit warehouse and office space developer Ideal Idea has launched construction on the first phase of its Ideal Idea III logistics and

office project in Wa r s a w ’ s W∏ochy district. The scheme is located near ul. Dzia∏kowa, close to the A2 motorway and Warsaw’s international airport, where the company previously delivered the Ideal Idea and Ideal Idea II warehouse and business developments. Ideal Idea has recently purchased an additional four hectares of land in the neighborhood for the new investment. Ideal Idea III will consist of four buildings comprising a combined 18,000 sqm of warehouse and office space. The first to be developed will be two buildings offering a total of 11,000 sqm of space, including 8,000 sqm of warehouse modules connected with 3,000 sqm of class-A office

areas. This phase of the project is scheduled to be completed in the second quarter of 2013. “After the success of the first two schemes, Ideal Idea continues to invest in the W∏ochy

district,” Tom Listowski, partner and head of industrial in Poland and corporate relations in CEE at Cushman & Wakefield, which brokered the land purchase negotiations, said in a statement. “We believe this scheme will again prove to be successful and generate interest from a number of different occupiers from various sectors,” he added. Ideal Idea III is currently being commercialized and has already got its first tenant, Ventia, which has leased 1,600 sqm of warehouse space. Adam Zdrodowski

Investors more active in the residential market

The mall will be the largest in Lublin leasable space housing 135 stores and points of service, Atrium Felicity will be the largest shopping center in Lublin. The mall is scheduled to open for business towards the end of 2013. Atrium European Real

Estate owns 21 operating shopping centers in Poland. The company’s portfolio in the country includes the Atrium Reduta, Promenada and Atrium Targówek malls in Warsaw. Adam Zdrodowski

Falling apartment prices and only a slight downward correction of apartment rent rates are now making the profitability of apartment renting higher than last year, according to a recent report by Home Broker and Lion’s House. The study said that this

has already been reflected in the growing activeness of investors in the Polish residential market. According to Home Broker and Lion’s House, 7.3 percent of people who have bought an apartment this year did so for investment purposes. AZ

The Polish Hotel Company has officially opened the Holiday Inn Express Warsaw Airport hospitality facility in the Polish capital. The newly delivered investment comprises 124 rooms. The Holiday Inn Express Warsaw Airport hotel is the first facility of the brand in Warsaw and the first out of a planned 17 hotels which the company intends to develop in Poland in cooperation with the InterContinental Hotels Group. The facility is located on ul. Poleczki in Warsaw’s Ursynów district, within the underconstruction Poleczki Business Park office complex.

Construction to launch on Poznaƒ mall Developer RED Real Estate Development is finishing preparatory work on its Galeria D´biec retail project in Poznaƒ in western Poland. Construction on the scheme is set to launch soon and finish in the first quarter of 2014. The two-floor Galeria D´biec development will be located on Poznaƒ’s ul. 28 Czerwca 1956 and will deliver 9,770 sqm of retail and service space housing approximately 50 stores. According to the developer, talks with the anchor tenants of the investment are now being finalized. ●

THE LIST

www.wbj.pl

DECEMBER 3-9, 2012

Corporate Services

Catering Companies Company name Address Tel./Fax E-mail Website

Revenue of revenue Number from catering Total events (z∏. mln) (z∏. mln) served

Largest events catered in 2011: Number of participants

Type of events served Company activity: Banquets Buffet Canteen with wait Drink-bar / operator / staff / SmorgasCatering / bord Restaurant Mass events

www.bookoflists.pl

Other services offered

Type of cuisine

2011 / 2010 / 2009

Sodexo Polska Sp. z o.o. (1) Al. Jerozolimskie 172, 02-486 Warsaw 1 22 338-9600/22 338-9601 info.fms.pl@sodexo.com www.sodexo.pl

Comprehensive food services: onsite canteens, catering, business banquets and conferences, meals to All types of cuisine go, lunch delivery, patient nutrition, food service for schools

Total number of catering employees / Total number of employees / Year founded in Poland

Rank

Ranked by revenue from catering in 2011

Head chef

Top local executive Title

844 2,074 1993

WND

Yann Gontard

80.0 81.8 77.1

217.6 205.2 188.2

50 WND WND

EURO 2012: 15,000; Madonna’s concert: 3,000; Google conference: 500

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

75.8 69.2 76.0

80.0 72.9 76.0

100 WND WND

Picnic: 1,000; holiday events: 20-500

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Facility management

Polish; regional; international; themed

930 930 1993

WND

Robert Modzelewski

Impel Catering Sp. z o.o. ul. Âl´˝na 118, 53-111 Wroc∏aw 3 71 780-9450/71 780-9511 cc.info@impel.pl www.impelcatering.pl

45.4 38.4 45

WND WND WND

Credit Suisse 5th Anniversary: 800; 31st Congress of Polish Gynecological Association (coffee breaks, lunch, VIP room): 1,600; banquet: 1,400

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Buffet service; event organization; gift basket preparation and delivery

Traditional Polish cuisine; regional; international; themed

575 575 2000

WND

Marek Ho∏ówko

P. Dussmann Sp. z o.o. ul. Kurpiƒskiego 55A, 02-733 Warsaw 4 22 827-2290/22 827-2298 dussmann@dussmann.pl www.dussmann.pl

21.6 20 18

50.0 48.0 43.2

22 60 25

Military unit’s festival: 550; Hospital of Pomeranian Medical University in Szczecin (holiday celebration): 280; Medisystem (holiday celebration for 5 centers): 400

✓ ✓ -

✓ ✓

Catering for children; catering for welfare centers; banquets; outdoor events; employee cantines

WND

550 1,200 1993

WND

Pawe∏ Skwarczowski

MCC Mazurkas Conference Centre & Hotel Sp. z o.o. ul. Poznaƒska 177, 5 05-850 O˝arów Mazowiecki 22 721-4747/22 721-4751 kontakt@mazurkashotel.pl www.mazurkashotel.pl

17.3 16.3 15

25.9 WND WND

884 WND WND

Polish Presidency of the EU - catering for one month in Kraków and one month in Poznaƒ: 20,000; event for Jeronimo Martins: 1,000; IBE - Congress of Polish Education EXPO XXI: 4,600; Sony Ericsson banquet: 600

✓ ✓

✓ ✓ ✓

Sound; lighting; attractions

Polish; Mediterranean; French

305 105 2001

Bart∏omiej Czerwiƒski

Andrzej Bartkowski

Kr´gliccy Restauracje i Catering ul. Foksal 17, 00-099 Warsaw 6 22 826-0109/22 826-0109 restauracje@kregliccy.pl www.kregliccy.pl

6.7 WND WND

3.3 WND WND

560 WND WND

Do & Co EURO 2012: 10,000; Gaz System: 500; Colgate Palmolive: 300; Ministry of Culture: 200; Ministry of Interior and Administration: 150; Ministry of Foreign Affairs: 200; Chancellery of Sejm: 150; Ministry of Sport and Tourism: 200; the Senate of the Republic of Poland: 150; Cabinet of Poland: 150; TVP: 500; Edipresse: 500

✓ ✓

✓ ✓ ✓

WND

All types of cuisines

300 500 1988

WND

5.4 5.3 4.0

5.4 WND WND

700 WND WND

Warsaw University of Technology (conference): 500; LOT (Christmas Eve): 500; Mathematics Congress in PKiN: 400; GazSystem (Easter party): 350; prom: 310; Medical University of Warsaw (conference): 250

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Arrangements; equipment; technical service; photography service

Polish; European; international

80 80 2004

Andrzej Kiko∏a

Wies∏aw Spodarzewski

5.0 WND WND

54 WND WND

Kisiel Awards - University of Warsaw Library: 700; Komputronik 15th Anniversary: 200; the Bright Night - event for Pernod Ricard Polska: 300; Projekt Pokolenie 1st Anniversary: 600; Language Gala in Warsaw University of Technology: 300; 6 events for Polish Radio Channel 3: 900

✓ ✓

✓ ✓ ✓

Event organization

Mediterranean; French; Polish

20 20 2003

Jakub Pa∏aszewski

Agencja Cateringowa Party Sp. z o.o. ul. Rakowiecka 36, 02-532 Warsaw 9 22 849-8597/22 849-8597 marketing@party.com.pl www.party.com.pl

3 2.3 2.5

3.1 2.4 2.5

900 1877 1990

Oscar Night 2011 (cocktail): 450; Central Agricultural Library/Arkady Kubickiego (conference): 900; Evmaco (conference): 1,500; Mazdy CX5 Promotion (banquet): 550; Metro Group Promotion (conference): 1,200

✓ -

✓ ✓

✓ ✓ ✓

Organization of conferences and events; tents; arrangements; equipment; entertainment; sound

Polish; European; international; themed

73 73 1992

Ludwika Makowiec; Robert El˝bieta Zielonka Kaêmierczak Board Members

Party Serwis Catering Melon Sp.j. ul. Mineralna 20, 02-274 Warsaw 9 22 644-2811/22 644-7025 biuro@partyserwis.pl www.partyserwis.pl

3.0 4.9 4.5

3.0 WND WND

700 920 680

Paszporty Polityki 2011: 1,600; AVON banquet (Torwar) 4,500; Warsaw Uprising Anniversary: 3,000; Forum Orange (Torwar): 1,000; the Polish Bank Association 20th Anniversary (Warsaw Philharmonic): 950

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Tents; art direction; photography service

International; European; sushi

160 160 1992

Dariusz Oleszczuk

Emilia Melon, Tomasz Melon

Lunch Service D. Cyran, P. Sobczak ul. 11 Listopada 28 B, 05-816 Micha∏owice 10 22 578-0880/22 213-3010 catering@lunchservice.com.pl www.lunchservice.com.pl

2.0 2.2 2.2

30 190 180

RBS: 750; Orange Polska: 460; Polskie Radio: 380; Bank Handlowy: 230; Kredyt Bank: 190

✓ -

✓ ✓

✓ ✓ ✓

Comprehensive service: floral decorations, banquet chairs and tables, tents, waiter services

Modern and traditional Polish; international

20 20 1995

Dariusz Cyran

Dariusz Cyran; Piotr Sobczak

0.2 WND WND

10.4 WND WND

480 WND WND

Blue Cactus and Iguana Lounge: 600; catering: 2,000

✓ ✓

✓ -

✓ ✓ ✓

Comprehensive event organization (including art direction, sound, artist suggestions); themed parties; conference organization; cocktails

Southwestern cuisine; custom

30 70 1996

Jacek Pietryka

Piotr Grajewski

0.1 0.4 0.2

3.5 WND WND

87 WND WND

WND

✓ ✓

✓ -

✓ ✓ ✓

WND

Polish and custom

30 30 1998

Katarzyna Wasilewska

Miros∏aw Wasilewski

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

2000 WND WND

Ministry of Foreign Affairs - events during Polish Presidency of the EU: 8,000; Economic Forum in Krynica: 7,000; Journalists Charity Ball: 600; Ceramika Parady˝: 450

✓ ✓

✓ ✓ ✓

international; Modern-design catering equipment; Polish; oriental; fusion; comprehensive service original; custom

104 104 1991

Dariusz Muçko

Artur Zymerman

Restauracje 99 Sp. z o.o. Al. Jana Paw∏a II 23, 00-854 Warsaw NR 22 620-1999/22 620-1998 karolina.drabik@restaurant99.com www.restaurant99.com

WND WND WND

Events for: Boig, Brog Marketing, PwC, T-Mobile, Tchibo, Mazurkas Travel, Wyborowa, Ernst & Young, Nike, Toyota, K&L Gates, PZU, Enea.

✓ ✓

✓ ✓ ✓

15 25 1997

Ernest Jagodziƒski

Karolina ThenPaszkowska

Same Smaki Catering Sp. z o.o. ul. Konstruktorska 6/102, 02-676 Warsaw NR 797-894-117 catering@samesmaki.eu www.samesmaki.eu

WND WND WND

WND

✓ ✓

✓ ✓ ✓

Eurest Poland Sp. z o.o.(2) ul. Jana Olbrachta 94, 01-102 Warsaw 2 22 463-4400/22 463-4444

eurest.poland@eurest.pl www.eurest.pl

Art’Impression Catering Sp. z o.o. ul. Karczunkowska 170, 02-871 Warsaw 7 22 736-2711/22 736-2712 events@ai-cateringWarsaw.pl www.ai-cateringWarsaw.pl Grand Catering ul. Koszykowa 1, 00-564 Warsaw 8 698-822-188/22 621-4258 kalina.tarasiuk@grandcatering.pl www.grandcatering.pl

Santa Fe Partners Sp. z o.o. ul. Zajàczkowska 11, 00-785 Warsaw 11 22 851-2323/22 851-2321 kontakt@bluecactus.pl www.bluecactus.pl Restauracja Dom Polski ul. Francuska 11, 03-906 Warsaw 12 22 616-2432/22 616-2488 restauracjadompolski@wp.pl www.restauracjadompolski.pl

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the list was conducted in November 2012. Number of employees is as of November 2012. All information petains to the companies’ activities in Poland. Companies not responding to our survey are not listed. Footnotes: (1) Financial year: September 1 - August 31; (2) Financial year: October 1 - September 30.

Equipment and furniture leasing; decorations; live music; lightning; culinary shows; culinary lessons; accepts unconvencional orders

Polish with international influences

Flair shows; tents; screens; lighting; Polish; international sound

33 33 2009

General Director

Managing Director

President

Krzysztof Kostro

Owners

President

General Manager

President

Dominik Tolak; Micha∏ Bogus∏awski Andrzej President Mikityn

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, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2012, 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.

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MARKETS

www.wbj.pl

DECEMBER 3-9, 2012

Stocks report

world stock indices DJIA

NASDAQ

13,021.82 (Nov 29 close)

S&P500

3,012.03 (Nov 29 close)

1.44% (for the week)

FTSE100

1,415.95 (Nov 29 close)

2.92% (for the week)

DAX

5,870.30 (Nov 29 close)

1.79% (for the week)

1.37% (for the week)

Stocks higher despite negative data

NIKKEI225 7,400.96 (Nov 29 close)

9,400.88 (Nov 29 close)

2.15% (for the week)

0.36% (for the week)

CHANGE: 5.04%

CHANGE: 13.72%

CHANGE: 10.88%

CHANGE: 2.99%

CHANGE: 21.82%

CHANGE: 9.82%

(year to Nov 29)

52-week high: 13,661.90

52-week high: 3,196.93

52-week high: 1,474.51

52-week high: 5,989.10

52-week high: 7,478.53

52-week high: 10,255.20

52-week low: 11,735.20

52-week low: 2,518.01

52-week low: 1,202.37

52-week low: 5,229.80

52-week low: 5,366.50

52-week low: 8,238.96

Monday’s trading on the WSE saw some of the biggest gains in Europe. The session was dominated by unofficial information coming from the summit of euro zone finance ministers and the IMF, namely that another tranche of financial aid would be given to Greece. The blue-chip WIG20 ended the day 0.31 percent higher while the WIG made gains of 0.37 percent. KGHM’s shares gained 1.6 percent while Lotos was up 2 percent. Tuesday was worse, with KGHM leading the losses. The firm’s shares fell up to 3.5 percent during the session. At the end of the day, the WIG20 was down 0.05 percent. On Wednesday, Lotos and PKN Orlen led gains, rising 3.4 percent and 2.2 percent respectively. Data

Major indices WIG

44,787.84 (November 29 close)

WIG20

2,410.79 (November 29 close)

29.11

28.11

27.11

26.11

23.11

22.11

21.11

20.11

19.11

16.11

15.11

14.11

13.11

29.11

28.11

27.11

26.11

23.11

22.11

21.11

20.11

19.11

2,200 16.11

40,000

15.11

2,260

14.11

41,000

13.11

2,320

12.11

42,000

09.11

2,380

08.11

43,000

07.11

2,440

06.11

44,000

05.11

2,500

02.11

45,000

12.11

52-week low: 2,035.80

09.11

Change year to November 29: 9.88%

08.11

52-week low: 36,653.28

07.11

52-week high: 2,417.32

Change year to November 29: 16.88%

06.11

Change for the week: 1.54%

05.11

52-week high: 44,787.84

02.11

Change for the week: 1.51%

Top 5 PBG REGNON TRITON DREWEX JWCONSTR

Closing 6.08 0.04 1.65 0.24 4.17

% change (week) 52-week high 40.42 85.80 33.33 0.22 29.92 3.94 20.00 0.84 19.83 8.56

52-week low 3.25 0.03 1.02 0.16 3.22

Top 5 KERNEL LOTOS PGE BHW PKNORLEN

Closing 68.20 37.75 17.85 96.40 47.69

% change (week) 6.65 5.80 5.62 4.78 3.67

52-week high 76.00 37.79 21.78 96.90 47.75

52-week low 51.00 21.30 16.72 64.15 31.44

Bottom 5 EUROMARK ADVADIS WESTAISIC PETROLINV ALTERCO

Closing 0.10 0.03 0.79 1.47 3.15

% change (week) -28.57 -25.00 -21.00 -19.23 -18.60

52-week low 0.10 0.03 0.42 0.95 0.66

Bottom 5 BOGDANKA PZU SYNTHOS KGHM JSW

Closing 130.80 385.10 5.53 176.50 85.10

% change (week) -2.53 -1.36 -1.07 -0.84 0.24

52-week high 137.00 396.70 6.78 184.70 112.50

52-week low 103.80 290.10 3.93 102.40 82.15

52-week high 2.39 0.11 4.50 3.30 47.98

sWIG80

Negative outlook

9,956.34 (November 29 close)

NewConnect

33.18 (November 29 close)

WIG-Banki

6,291.35 (November 29 close)

SOURCE: WSE

29.11

28.11

27.11

26.11

23.11

22.11

21.11

20.11

19.11

16.11

15.11

14.11

13.11

29.11

28.11

27.11

26.11

23.11

22.11

21.11

20.11

19.11

16.11

5,900

15.11

33.0

14.11

6,020

13.11

33.6

12.11

6,140

09.11

34.2

08.11

6,260

07.11

34.8

06.11

6,380

05.11

35.4

02.11

6,500

12.11

52-week low: 5,163.30

09.11

Change year to November 29: 13.50%

08.11

52-week low: 33.36

07.11

52-week high: 6,495.06

Change year to November 29: -20.03%

06.11

Change for the week: 2.21%

05.11

52-week high: 43.83

02.11

Change for the week: -1.28%

36.0

Adam Narczewski X-Trade Brokers DM SA

29.11

28.11

27.11

26.11

23.11

22.11

21.11

20.11

52-week low: 8,218.71

19.11

14.11

13.11

52-week high: 10,536.29

12.11

09.11

29.11

28.11

27.11

26.11

23.11

22.11

21.11

20.11

19.11

9,200

16.11

2,200

15.11

9,400

14.11

2,260

13.11

9,600

12.11

2,320

09.11

9,800

08.11

2,380

07.11

10,000

06.11

2,440

05.11

10,200

02.11

2,500

08.11

Change year to November 29: 15.71%

07.11

52-week low: 2,076.52

06.11

Change year to November 29: 13.70%

05.11

Change for the week: 1.49%

02.11

52-week high: 2,561.94

16.11

2,490.33 (November 29 close)

15.11

mWIG40

Remi Adekoya

Currency report

Other indices Change for the week: 1.57%

on US housing was worse than expected and the WIG20 ended the day 0.4 percent down. Thursday saw optimism return. This was largely due to a good session in the US the previous day after investors believed there would soon be a deal on the “fiscal cliff.” The WIG20 ended 0.39 percent up. On Friday, investors had to deal with the bad news that the Polish economy grew only 1.4 percent y/y in Q3. However, investors interpreted this data as something that would force the Monetary Policy Council to cut Poland’s benchmark interest rate by at least 50 basis points in December. In the end, the WIG20 finished the day 0.45 percent up while the overall WIG was 0.51 percent higher.

The closer the end of the year approaches, the more interesting events are becoming. The Eurogroup finally agreed on a deal for Greece, which is in reality mostly creative accounting (deferring interest on debt by 10 years, a securities buyback on a lower than nominal value). Markets received the news positively, helping the EUR/USD reach a monthly high of $1.3025. Published macroeconomic data from the US and China was also a factor contributing to improved investor sentiment. On the z∏oty market, there was rather low volatility. Decreased risk aversion and the flow of capital to the Polish market helped the local currency. Bond yields remain at historic lows despite the worsening outlook for the

Polish economy. The unemployment rate increased to 12.5 percent but the worst news came on Friday, showing that third-quarter GDP increased by only 1.4 percent y/y (the market expected 1.8 percent). Taking all this into account, it would seem strange indeed if the Monetary Policy Council did not cut interest rates during its next meeting. The z∏oty already discounted one cut, but with a negative economic outlook we should expect interest rates to be lowered even more in Q1 2013. The EUR/PLN, which declined during the first part of the week, turned around on Friday to finish at zl.4.10. The USD/PLN, after reaching monthly lows at zl.3.14, bounced back to finish the week at zl.3.16. ●

currency rates 3.8213 30.11

SOURCE: NBP

3.8412 29.11

3.8518

3.8837 28.11

27.11

26.11

3.8828 23.11

0.1019

0.1022 30.11

3.8

3.8671

PLN-100JPY

3.9

29.11

0.1022 28.11

0.1020 27.11

26.11

0.1025 23.11

3.4025

3.4088 30.11

0.10

0.1023

PLN-RUB

0.12

29.11

3.4151 28.11

3.4044 27.11

26.11

3.4208 23.11

5.0565

5.0621 30.11

3.3

3.4173

PLN-CHF

3.5

29.11

5.0928

5.0906 28.11

5.0718 27.11

26.11

23.11

3.1556

3.1585 30.11

5.05

5.0815

PLN-GBP

5.10

29.11

3.1799 28.11

3.1634 27.11

3.1744

3.1945 3.1

23.11

4.1064 30.11

4.0968 29.11

4.1099 28.11

4.1008 27.11

4.1160 26.11

4.1229 23.11

4.0

PLN-USD

3.3

26.11

PLN-EUR

4.2

SPORTS

DECEMBER 3-9, 2012

www.wbj.pl

Cross-country skiing

Soccer

Poor start to season for Justyna Kowalczyk

Perquis drops Tomaszewski lawsuit

The Polish skier could be in for a tough season if her form doesn’t improve quickly

COURTESY OF WIKIMEDIA COMMONS

Justyna Kowalczyk finished the inaugural cross-country skiing event of the winter in 27th place. The 10km race in Gällivare was won by last year’s overall World Cup winner, Norway’s Marit Bjøergen. Poland’s top skier often starts the season slowly, with seventh place her highest-ever opening day finish, but on the eve of the race Ms Kowalczyk had seemed positive, saying in an interview with fiscrosscountry.com, “I hope that this will be a really good season.” However, following the race, which saw her finish in 23 minutes and 55 seconds, almost a minute and a half behind Ms Bjøergen, the Polish skier’s coach, Aleksander Wierietielny, told sports newspaper Przeglàd Sportowy, that the only positive he could take from her result was that it couldn’t possibly be any worse in the future.

The former Polish goalkeeper called Polish player Damien Perquis “French trash”

Justyna Kowalczyk (front) “It will be better, but we’ll see, as we approach the start in Finland, about the intensity with which we train in the coming days,” he added.

Ms Kowalczyk is one of the most successful cross country skiers of all time. As well as winning Olympic Gold at the 2010 Vancouver

games, the Pole also has two World Championship golds and three overall World Cup titles. David Ingham

Poland international soccer player Damien Perquis has dropped legal action against ex-Poland goalkeeper Jan Tomaszewski, who previously referred to the Real Betis defender as “French trash” who was not fit to wear the Poland shirt. Mr Tomaszewski, who is now a politician for Polish opposition party Law and Justice (PiS), appeared in ¸ódê District Court last week only to be told that Mr Perquis had written to the court withdrawing the lawsuit and as a result the case was being dropped. The former Poland international, who gained fame for his amazing display of goalkeeping in a match against England in 1973, accepted the decision saying that his statement was never addressed directly to the player, and was

only a metaphor for the situation of the Polish national team. “If Perquis understands that these words are uttered against him, I’m sorry,” he said. Mr Tomaszewski has often been seen as a controversial figure, well known for his outspoken views about both soccer and politics. In September this year he was sued by former Poland coach Franciszek Smuda after Polish media reported him calling the coach “uncouth.” The former ¸KS ¸ódê man was found guilty and ordered to pay z∏.50,000 in damages to Mr Smuda. He was a long-time critic of Poland’s former manager, when the latter was at the helm of the national team, saying prior to Euro 2012, “I do not identify with the team of Smuda. Even if he wins the European Championship I will not be cheering for him. I’ll be rooting for Germany, who have a very promising team.” David Ingham

LIFESTYLE

www.wbj.pl

DECEMBER 3-9, 2012

Film festival

Christmas market

Human stories

Festive cheer

Paradise Lost 3: Purgatory 12th WATCH DOCS festival December 7-16 Kino Iluzjon and other venues Warsaw One of the oldest festivals of its kind in Europe, Watch Docs aims to highlight human rights issues from across the globe. This year’s event opens with a screening of one part of acclaimed director Werner Herzog’s film “On Death Row.” The film focuses on Linda Carty, who was convicted of kidnapping and killing a

Publication partners:

25-year-old woman. The event will also feature a retrospective of Iranian director Jafar Panahi, who originally gained fame through his debut feature “The White Balloon” which won the Prix de la Camera d’Or at the 1995 Cannes Film Festival. Among the other must-see screenings is “Paradise Lost 3: Purgatory,” the final part in the Paradise Lost trilogy, which details the arrest, murder, trial, 18-year imprisonment, and eventual release of

Damien Echols, Jason Baldwin, and Jessie Misskelley, otherwise known as the West Memphis Three. Along with providing the opportunity for viewers to see real-life events on film, Watch Docs also involves discussions with filmmakers, NGO activists, experts, journalists and politicians. David Ingham

For more information, log on to watchdocs.pl

The capital’s much-loved Christmas market will once again provide those in Warsaw with the opportunity to drink, eat, and be merry, in a historic location this festive season. With over 70 wooden stalls, food outlets and bars to choose from, and produce provided by sellers from Austria, Croatia, Germany, Lithuania, Slovakia, as well as Poland, a Yuletide visit to the market is certainly recommended. Hot bowls of bigos, bratwurst, fried potatoes, smalec and various cured meats and sausages are among the delicacies available. Hot mulled wine and regional beers are also on offer, with an indoor bar with long wooden tables protecting patrons from the cold weather outside. There will also be carol concerts and nativity scenes, as well as the annual Warsaw Christmas tree outside the castle, just a few minutes’ walk away. And if you’re still unsure what to buy relatives for

Conference partners:

SHUTTERSTOCK

COURTESY OF WATCHDOC.PL

Christmas Market Until January 6 Old Town Square Warsaw

Shop for Christmas goodies at over 70 wooden stalls Christmas, then there are numerous gift ideas including hand-crafted decorations, nut crackers, Russian dolls, and folk art work, which should

Media patronage:

w w w. b i l a n s . e u

appeal to family members back home. The market is open from 12 pm to 8 pm daily. David Ingham

Strategic partner for Spanish & Chinese editions:

LAST WORD

DECEMBER 3-9, 2012

www.wbj.pl

Tech Eye

Presents that (probably) won’t infuriate females ket, and there are a few bells and whistles but nothing exceptional. Picture quality is adequate, but the flash is weak and some customers have complained the camera is slow to autofocus and shoot. Also, at $179.95, it’s not the cheapest mini-camera out there. But it just might be the most adorable. Last among Techeye’s ideas for the Y-chromosome challenged is the Buddha Machine III. According to its maker, China-based musicians FM3, the Buddha Machine is “a small plastic box that plays mediCOURTESY OF NIKON

core Intel Core i5 processor and 64/128 GB of flash storage ($999/$1,099). Its larger sibling has a 1.8 GHz version of the same processor and 128/256 GB of storage ($1,199/$1,499). Battery life is best-in-class, but on the downside Apple hasn’t gotten around to equipping the MacBook Air with a RetiThe CoolPix S01 na display. What makes this a good girl pres- competing products, yes, but its ent? Well, it’s light (just 1.08 or 1.34 svelteness comes at a cost, and that kg, depending on the model) and it’s cost includes ease of repairability and about as lithe as a laptop can get. The recyclability. Nikon’s Coolpix S01 is another combination of attractive design and strong technical performance doesn’t fine gadget for the fairer sex. It’s cute hurt either. A word of caution, and wee, almost toy-like in large though: the MacBook Air might not hands (transvestites take note), and please an environmentally minded has a 2.5-inch touchscreen that suits lady. It uses less power than some well-manicured fingers. Moreover, it’s cheerfully colorful and would fit neatly in even a small purse, not that The MacBook Air women ever carry small purses. OK fine, it looks nice, but you’re probably wondering if it’s a good camera. And the answer is: kind of. The Coolpix S01 has a 10.1 MP sensor, which is considerably less impressive than other mid-price (albeit larger) cameras on the mar-

tative music.” To be precise, it plays four different loops of Chinese classical music through a little speaker. It’s not a complicated device, and that’s the point. The Buddha Machine III, like its two predecessors, is meant to be simple and straightforward, the very antithesis of most gadgets these days. Its ambient music is an alternative to silence, a soothing aural experience that doesn’t demand active listening. You can find Buddha Machines on Amazon for $26.99. They come in several colors, are useful for tuning out noisy men and children, and, crucially, they aren’t sharp enough to stab with.

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COURTESY OF BUDDHA MACHINE

COURTESY OF APPLE

In Techeye’s experience, it’s harder to find good presents for ladies than it is for menfolk or kids. Rarely do our gifts please them, and we’ve tried almost everything, including laser depilators, monkey-shaped nail dryers, heated mittens, techno-aprons, electronic spatulas and even the “Shewee Extreme” (the less said about that, the better). So this year, even with Christmas still a ways off, Techeye has been giving serious thought to presents for our favorite females. First up: Apple’s latest MacBook Air. Yes, this is a generic, mainstream sort of gift. But the lady who finds one of these under the tree is unlikely to react by scratching out the gift-giver’s eyes. Two MacBook Air models are available, with 11- and 13-inch displays, respectively. The 11-inch model comes equipped with a 1.7 GHz, dual-

The Buddha Machine III

Ever enraged a lady with a poorly chosen present? Let us know: techeye.wbj@gmail.com

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

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

Fibak Gallery ul. Krakowskie PrzedmieÊcie 5 www.galeriafibak.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art. Galeria 022, DAP, Lufcik pl ul. Mazowiecka 11a www.owzpap.pl Le Guern Gallery ul. Widok 8, Galeria 65 www.leguern.pl ul. Bema 65 www.galeria65.com Museum of Galeria Appendix 2 Independence ul. Bia∏ostocka 9 Aleja SolidarnoÊci 62 www.appendix2.com www.muzeumniepodleglo sci.art.pl Galeria Asymetria ul. Nowogrodzka 18a National Museum in www.asymetria.eu Warsaw Al. Jerozolimskie 3 Galeria Foksal ul. Foksal 1-4 www.mnw.art.pl www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A 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

Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.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 Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

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