WBJ #12 2013

WSE’s new platform The Warsaw Stock Exchange will implement its new trading system this month

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WWW.WBJ.PL

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A complex relationship Alexander Alekseev, Russia’s ambassador to Poland, sat down with WBJ to assess the current state of the two countries’ often difficult relations

VOLUME 19, NUMBER 12 • APRIL 2-7, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

European project COURTESY OF BALMORAL

REAL ESTATE

In an exclusive interview for WBJ, former President Aleksander KwaÊniewski discusses his new Europe Plus initiative, Polish and EU affairs, and suggests how elections for a European president could be conducted

• Browar Lubicz • Pa∏ac Szuchów • Park Avenue 14-17

A new business model for Cyprus Javier Solana sees light on the horizon for the troubled island nation 11

Get radical A business lobby group warns that Poland needs “radical” economic reform right away 7

12-13

In this issue

EAST NEWS

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . .14-17 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Euro U-turn

Roads open

Prime Minister Donald Tusk has announced he now supports a referendum on euro zone entry 3

The European Commission has released some z∏.3.5 billion in road funding for Poland 4

NEWS

www.wbj.pl

IN THE SPOTLIGHT

Numbers in the News

The 2022 Winter Olympics

25% is the average share of household income that Poles spend on food.

Natural gas distributor PGNiG had to increase supplies from Russia’s Gazprom as a result of exceptionally cold weather. PGNiG’s customers’ demand for gas has increased to about 52-55 million cubic meters daily, 10 million cubic meters more than the average observed over the past five years. The company turned to Gazprom and the Russian firm increased natural gas supplies after March 20.

Tax burdens increase in Poland Tax burdens in Poland, the Netherlands and Slovakia have increased the most among member states, the OECD said.

According to a recent report, burdens have been increasing since 2010 in 26 of its member countries and falling only in seven. The average tax and social security burden on employment incomes increased by 0.1 percentage points to 35.6 percent in 2012. In Poland, the burden increased by 1.2 percentage points in 2012 to 35.5%. ●

63.5% is the share the five largest banks in Poland have of the total number of personal bank accounts in the country.

Quote of the Week

Figures in focus Who will be the next Cyprus?

Selected euro zone countries’ bank assets as a share of GDP (in %, as of December 2012) 25 20 15 10 5

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On WBJ.pl

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Jacek Ciesnowski

Former Polish president Lech Wa∏´sa on TVN24, referring to the fact that while he has had two scheduled lectures in the US called off due to his recent anti-gay statements, he has received four new offers for speaking engagements.

Cy

pionships, and Slovakia hosted the Ice Hockey World Championships in 2011.

When it comes to the costs of organizing the events, officials don’t want to mention any figures yet. However, preliminary estimates by Ma∏opolska voivodship authorities claim it would cost z∏.5 billion.

In comparison, officials from Oslo, another city that wants to host the 2022 Olympics, claim it would cost them €5 billion.

The official application process starts in May and ends in November of 2013. The host will be chosen in 2015.

lan

Kraków would be the main host of the games, holding the opening and closing ceremonies as well as various ice-skating events, bobsleigh and luge. The southern city of Zakopane would host skijumping, biathlon, snowboarding and cross-country skiing events. Slovakia meanwhile, would be organizing most of the ice-hockey games and all of the alpine skiing events.

Both PMs claim that the strength of their bid comes from their recent experience in hosting big sporting events.

Poland was a co-host of the 2012 European soccer cham-

lta

Poland and Slovakia’s Prime Ministers met last week to discuss details of a joint bid to organize the Winter Olympics in 2022.

“This is the best time to submit our bid, and there won’t be a better one in the future. Poland and Slovakia are both viewed by others as stable countries with good economies,” said Polish Prime Minister Donald Tusk. “I believe this will be a financially viable project. We shouldn’t drop our ambitions just because there is a crisis in the euro zone,” added his Slovakian counterpart Robert Fico.

“Who knows? Maybe I'll even make some money on this thing.”

Ire

Private individuals expect inflation to be 1.6% within a year’s time, the National Bank of Poland said. The NBP calculated the data based on a survey carried out by pollster IPSOS in March. Expected inflation has fallen significantly since the previous survey – in February the figure was 2.2.%. At the moment when the poll was carried out, year-on-year CPI inflation was 1.7%, the NBP said.

is the value of a bond issue Bank Gospodarki ˚ywnoÊciowej is due to hold soon.

urg

Inflation expectations at 1.6%

z∏.3.5 billion

mb o

Polish food exports are expected to continue growing in 2013.

According to a recent projection by the Institute of Agricultural and Food Economics (IERiG˚), their value is expected to reach €18.2 billion this year, compared to €17.5 billion in 2012. The 4% growth rate will be nonetheless lower than the one recorded in 2012, when food exports increased by almost 15% year-on-year.

is how much the National Bank of Poland will transfer to the state budget from its 2012 profit.

COURTESY OF WIKIMEDIA COMMONS

Food exports to rise

z∏.5.3 billion

Ma

PGNiG buys more gas due to cold weather

APRIL 2-7, 2013

Lux e

2

Sources: Eurostat, ECB

Paths to sustainable power What is the path to sustainable energy policies for the entire world? Renowned economist Jeffery Sachs gives his take on the matter. Log on to WBJ.pl to read more.

Calendar

April 4-5

APPETITE FOR OUTSOURCING CONFERENCE

Event:

Web:

This conference, organized by Bluevine Consulting with the help of the City of Kielce and Deloitte, will focus on development prospects for BPO centers in Kielce and other cities of Eastern Poland.

Kieleckie Centrum Biznesu Al. SolidarnoÊci 34 Kielce www.prospectsinpoland.com

9-10

OFFICEDAYS

Event:

This fair is designed for four main groups of attendees: office managers and persons responsible for ordering equipment and office services; developers, owners and managers of office buildings; architects and interior designers; and IT specialists responsible for company hardware.

WARSAW EXPO XXI Centre,

Location:

Location:

ul. Pràdzyƒskiego 12/14, Warsaw Web:

www.officedays.pl

10

MADE IN POLAND CONFERENCE

Event:

Journalists, entrepreneurs and officials will discuss Polish exports – their successes, challenges and impact on the Polish economy.

Location:

National Stadium, Al. Poniatowskiego 1, Warsaw

17-21 FASHIONPHILOSOPHY FASHION WEEK POLAND Event:

Location:

Spring edition of the biggest fashion event in Central and Eastern Europe. This time designers from the region will present their ideas for their Autumn/Winter collections. ¸ódê Special Economic Zone, ul. Tymienieckiego 22/24, ¸ódê

Company index 3BAYS ..............................................23 APA Wojciechowski ........................14 Awbud SA ........................................16 Balmoral Properties ......................14 Bank Gospodarki ˚ywnoÊciowej ..2, 9 Bank Handlowy ................................9 Bank Millennium ..............................5 Bank of Cyprus ................................3 Bank Pekao ..................................8, 9 Bank Polskiej Spó∏dzielczoÊci ........16 Biuro Informacji Kredytowej ............9 BRE Bank ..........................................9 BRE Bank Hipoteczny ....................14 Business Centre Club ......................7 Carlsberg ........................................14 Deca International ..........................23 E&L Architects ................................15 Echo Investment ............................14 Elsoria Polska I ..............................14 Ford....................................................5 Gazprom ............................................2 Globe Trade Centre ..................14, 16 Goodman ........................................17 Griffin Group....................................17 Grupa 5 Architekci ..........................16 GTC ..................................................20 HB Reavis ........................................15 Hilton ..............................................15 Homo Homini ................................3, 8 ING Bank Âlàski ................................9 IPSOS ................................................2 Jones Lang LaSalle ..................16, 17 JSK Architekci ................................15

Laiki Bank ........................................3 London & Cambridge Properties Ltd ................................14 Morgan Stanley ................................7 Moshe Tzur......................................14 NYSE Euronext ..................................6 Okocim ............................................14 Panattoni ........................................17 Park Projects ..................................15 PGE ..................................................20 PGNiG ................................................2 PKN Orlen ......................................20 PKO BP..........................................6, 8 PORR Polska ..................................14 Rabobank ..........................................9 Rank Progress ................................14 Savills ..............................................14 Sensoglove ......................................23 SMZ Architekci ................................16 Sud Architectes ..............................16 TJX ..................................................17 Unibail-Rodamco ............................16 Unibep ............................................16 Unidevelopment ..............................16 Visa Europe ......................................6 Visa Incorporated ..............................6 Warsaw Chopin Airport ..................14 Warsaw Stock Exchange ......6, 14, 16 X-Trade Brokers..............................20

NEWS

APRIL 2-7, 2013

www.wbj.pl

3

Euro adoption

Tusk makes U-turn on euro referendum

Prime Minister Donald Tusk has had a change of heart regarding the necessity of a referendum in Poland on euro zone accession, announcing he now supports the idea. “I am fully in favor of us looking for agreement in parliament to change the constitution so as to add an amendment that the final decision on Poland’s entry into the euro zone can be decided through a referendum,” said Mr Tusk at a press conference last week.

“I have nothing against that for obvious reasons: you need fewer people [to win a referendum] on entering the euro zone than the number of voters necessary to give you the two-thirds parliamentary majority you

euro zone is going bankrupt.”

In Law and Justice’s view, Poland should only join the euro zone when its “economic level is equal to that of Germany’s.”

need to change the constitution,” added the prime minister.

This marks a significant shift for Mr Tusk who just last December said, “We already have behind us a referendum on joining the euro zone because the [2003] referendum we held on European Union accession was also an acceptance of euro adoption.”

No walk in the park COURTESY OF THE PRIME MINISTER’S CHANCELLERY

The prime minister now says Polish citizens should choose whether their country will adopt the common currency

Parliamentary arithmetic unfavorable Donald Tusk’s latest stance is likely inspired by political reality on the ground. The conservative and euroskeptic opposition Law and Justice party has enough MPs to deny the PM the two-thirds majority he needs to change the constitution, which explicitly states that Poland’s official currency is the z∏oty.

Going by current opinion polls and Law and Justice’s past performance in elections, it is likely to still have enough MPs

Prime Minister Tusk says that he is “fully in favor” of a referendum on euro adoption to block such a constitutional change, even after a scheduled 2015 parliamentary vote.

Hence Mr Tusk’s latest gambit.

Although Law and Justice’s spokesperson Mariusz B∏aszczak responded saying “we do not accept any such transactions,” he did add that “we

The euro zone crisis

tions that we are now being faced with. Today Mr Tusk is not ruling out a referendum.”

Mr B∏aszcak also confirmed his party’s opposition to Poland adopting the common currency, saying, it “doesn’t make any sense, especially in the situation we have today whereby the

believe that if Mr Tusk’s government wants to take our country into the euro zone, there should be a referendum.”

Mr B∏aszczak commented on the PM’s change of heart on the issue. “Before, they tried to convince us that by joining the EU, we had accepted the condi-

Convincing Poles to support adopting the euro, which Mr Tusk favors, will not be easy. A March poll by Homo Homini showed 62 percent of respondents against Poland entering the euro zone, with only 32 percent in support.

Mr Tusk’s government has maintained that by 2015, Poland will fulfill all the criteria required to join the euro zone.

But Stanis∏aw Gomu∏ka, a former deputy finance minister in Mr Tusk’s government, told WBJ that 2019 is a “realistic” date for euro adoption considering the fact that Poland would still have to spend two years in the Exchange Rate Mechanism (ERM II).

Remi Adekoya

CIA black sites

Despite facing big losses in the less-thandesirable bailout plan, Cypriots refrain from storming banks

Rescue underway The island nation’s banks had remained closed since March 16, when they froze between 6.75 and 9.9 percent of all deposits while lawmakers debated a one-off levy in an attempt to raise €5.8 billion, the sum demanded by the EU and the IMF as a prerequisite for the €10 billion bailout for

SHUTTERSTOCK

Last Thursday, after almost two weeks of being closed, Cyprus’ banks reopened, with crowds awaiting the start of business in front of banks in Nicosia.

Police, reinforced with private security firms, guarded ATMs in Cyprus’ capital, but no problems with crowd control were reported.

President Nicos Anastasiades thanked Cypriots for the “maturity and spirit of responsibility they have shown at a critical time for the stability of the Cypriot economy,” in a statement published by his office.

Still, some capital controls remain, including a daily cash withdrawal limit of €300 per person and a limit on payments effected abroad to €5,000.

Cypriot banks can accept

checks as deposits but they may not cash them. Limits on cash have also been imposed, with €1,000 the maximum sum a Cypriot or a visitor can take with them when leaving the island.

These limits have been initially imposed for seven days and are being reviewed daily.

They may be fully lifted in a month, according to Cypriot Foreign Minister Loannis Kasoulides.

Mr Kasoulides said he believed in Cypriots’ loyalty and self-control and that “there will be no bank run.”

After being closed for nearly two weeks, Cyprus’ banks reopened last Thursday

Cyprus. As soon as the Cyprus parliament rejected the tax, a frantic search for cash started.

When Cyprus’ biggest investor, Russia, refused to throw it a rope, Cyprus’ survival was once again placed in the hands of euro zone finance ministers, who, after negotiations that lasted from March 22-25, finally agreed to a rescue package.

The deal will see the island nation’s banking sector significantly reduced, with Laiki Bank, one of the country’s largest lenders, set to be wound down. Shareholders and senior bondholders would take losses.

The Bank of Cyprus will be significantly restructured.

While the plan does not include the previously proposed across-the-board tax on all banking deposits, those with over €100,000 will take a heavy hit, though the size of the losses still needs to be determined.

The depositors will take “forced losses” rather than a tax.

Laiki Bank’s good assets will be absorbed by the Bank of Cyprus. The short-term financing that Laiki had been receiving from the IMF will likely continue – and will be taken on by the Bank of Cyprus.

Cyprus is due to receive the first payment of the bailout package, worth some €10 billion, in early May. Beata Socha, Andrew Kureth

A man who allegedly revealed valuable information about 9-11 mastermind Khalid Sheikh Mohamed is suing Poland in a European court Saudi citizen Abu Zubaydah has filed a lawsuit against Poland with the European Court of Human Rights in Strasbourg. His lawyers claim that he was held at a CIA “black site” in Poland between 2002 and 2003 and that Warsaw is withholding crucial evidence needed to investigate his case.

Mr Zubaydah has been detained by US authorities for more than a decade without being charged and is now being held in the Guantanamo Bay US detention camp in Cuba.

His lawyers claim he was repeatedly waterboarded by US interrogators, and lost one of his eyes as a result of the torture he endured.

The same court is already hearing the case of another man, a Saudi national Abd alRahim al-Nashiri, who alleges he was held in a CIA jail in Poland.

Polish officials deny accusations that the CIA operated prisons on Polish soil and claim that they are conducting a full and fair investigation into the allegations. However, they say they can’t release all of the necessary documents because

COURTESY OF THE COUNCIL OF EUROPE

Cypriots keep their cool Guantanamo detainee as banks reopen sues Poland

Abu Zubaydah has filed a lawsuit against Poland in the European Court of Human Rights many of them are top secret.

Nevertheless, in October 2011, Thomas Hammarberg, the Council of Europe’s Commissioner for Human Rights said it was “clear” that Poland had hosted secret CIA prisons between December 2002 and September 2003.

“We know who was held there and what interrogation methods were used. They can be described as torture,” he said.

Victim status Back in February, the European Court of Human Rights decided to declassify documents pertaining to the complaint by Mr al-Nashiri.

Poland’s Ministry of Foreign Affairs expressed disappointment and surprise at the decision.

Poland’s investigation into the existence of the alleged CIA prisons in Europe is the

only one currently in progress. Lithuania discontinued its own investigation and Romania decided not to start one. Poland’s investigation was launched five years ago, but deadlines for progress have been repeatedly pushed back.

Both Mr al-Nashiri and Mr Zubaydah have been given victim status in the Polish investigation, which gives their legal representatives the right to be briefed on certain aspects of the case. The application to the court in Strasbourg said that a Polish lawyer for Mr Zubaydah has been denied access to files he needs to properly represent his client. He’s only allowed to see a small part of the files in the prosecutor’s office and can’t make any notes or legal submissions based on what he has read in them.

Jacek Ciesnowski

4

NEWS

www.wbj.pl

APRIL 2-7, 2013

Infrastructure

Labor

EC unfreezes z∏.3.5 billion in funds for Polish roads

Thousands go on strike in Silesia, more threatened

The Polish government was found to provide sufficient supervision over EU co-founded projects

The funding will allow Poland to get back to building much-needed highways including large international ones, and one former director of Poland’s General Directorate for National Roads and Motorways.

The allegations, revealed in February, accuse those involved of bribes, price-fixing and undermining qualitycontrol inspections.

One of the prosecutors in this case, Zbigniew Jaskólski, explained in an interview with TVN24 how the cartel operated. “A group of employees of construction firms had access to confidential data from one

of the GDDKiA directors.

They knew exactly how much the agency could spend on every project, and they divided them between themselves.”

In documents submitted to the court, prosecutors allege that one executive bribed the GDDKiA official with a goldembossed limited-edition fountain pen, which was worth $3,800 and came in a glass case shaped like the ancient Lighthouse at Alexandria.

Jacek Ciesnowski

Thousands of workers went on strike for a few hours in Silesia, Poland’s southern industrial region last Tuesday. The protesters, led by the Solidarity trade union, demanded more job security, higher pensions and better protection from the economic downturn.

Due to the protests, local transport was delayed for a few hours and some schools canceled classes. Various industrial facilities, power plants and hospitals took part in the strike as well.

Solidarity representatives invited Prime Minister Donald Tusk and his ministers for talks on solving the social and economic issues they were protesting against. Prime Minister Tusk responded by saying that the forum for discussing such issues is the trilateral commission, with representatives from the government, trade unions and employers.

Solidarity members missed four out of five meetings of the commission in 2013.

COURTESY OF NSZZ SOLIDARNOÂÅ

COURTESY OF WIKIMEDIA COMMONS

The European Commission announced that it has released z∏.3.5 billion in funding for Polish roads that it suspended back in December of last year.

The funds were used for projects managed by Poland’s General Directorate of National Roads and Motorways.

After the suspicion that an alleged cartel fixed the tenders for road-building projects cofunded by the EU’s operational program “Infrastructure and Environment,” the EC decided to freeze the funds and audit the investments.

When the audit was completed, the EC found that the Polish government provides sufficient supervision over EU co-funded projects and the funds are again available to Polish government organizations.

During the investigation 11 people were charged. Among them are 10 executives who worked for construction firms,

Nearly 100,000 workers protested for four hours demanding more benefits

Striking in Silesia Mr Tusk added that no protests should be ignored, but Solidarity’s demands are potentially dangerous for employees and could backfire.

“Their claims are good for trade unions and those currently employed, but can be harmful for people looking for work and those that fear losing their jobs,” he said at the press conference.

The PM’s views were echoed by Deputy PM and Economy Minister Janusz Piechociƒski. Mr Piechociƒski, the leader of the Polish People’s Party, the junior coalition

member, said that some of the demands would push the labor market “some 30 years back,” referring to the privileges many workers, especially in the mining sector, enjoyed during the communist era. Mr Piechociƒski added that the demands were “unacceptable,” and would burden the already tight budget.

The protesters announced that if the government doesn’t take their demands into account, they would take “further steps,” including a nationwide general strike.

Jacek Ciesnowski

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BUSINESS

APRIL 2-7, 2013

Trade

EU, Japan to start talks on free trade zone

Talks on creating a free trade zone between the EU and Japan were scheduled to start last Monday, but the Cyprus crisis pushed them back to April. Nevertheless, the parties are determined to go ahead with the negotiations.

Combined, Japan and the EU represent an economic area of approximately 30 percent of the global economy and 40 percent of global trade.

“The agreement that we have in mind is a comprehensive one, tackling barriers and non-tariff barriers, public procurements and intellectual property rights,” said EU Trade Commissioner Karel De Gucht.

Still, the negotiations are expected to be long and difficult; both sides have their own demands. Japanese authorities want to eliminate EU tariffs on electronics (14 percent) and cars (10 percent), which put them at a disadvantage compared with their South Korean rivals. South Korea has a free-trade agreement with the EU. The EU on the other hand wants Japan to remove some of the bureaucratic obstacles

Balance -29,616

2008

48,105

75,009

-26,904

2009

42,412

51,851

-9,439

2010

50,217

65,740

-15,523

2011

57,854

68,930

-11,076

that prevent many European companies from entering and competing on Japanese soil.

For example, the Japanese approval process for drugs and medical equipment is stricter than international standards.

European car makers also criticize Japan for unfairly restricting their access to the Japanese market. The country uses its own safety and environmental standards, not the international ones adopted by the EU. As a result, European car manufacturers doubt that the agreement will change their position in Japan. “We’re more than deeply skeptical. There’s not a single foreign [car] manufacturer in Japan, so there’s really no possibility to enter the market,” Stephen Biegun, Ford’s vice president of international governmental affairs, told Reuters.

Source: European Commission

After launching talks Land of the rising trade Japan’s trade with the EU (in € millions) with the US, the EU wants to create another Period Import Export free trade zone, this 2007 47,472 77,088 time with Japan

Poland not a big player in Japan The trade-flow between Japan and Poland is strictly one-way.

According to the Polish Information and Foreign Investment Agency there isn’t a single Polish investment in Japan, while Japanese companies had a total of $1.5 billion invested in Poland at the end of 2010, according to National Bank of Poland data. There are 264 Japanese companies present in Poland (mostly in the automotive and electronic sector), while JETRO (the Japan External Trade Organization) lists only four Polish companies operating in Japan.

The agreement could help Poland lower its trade deficit with Japan. As of 2010 it was valued at some €2.2 billion.

Right now Poland exports mostly car parts, beef, jet engines and razor blades to Jacek Ciesnowski Japan.

Pension funds propose ‘shocking’ reform of system The Polish Pension Funds Managers Chamber (IGTE) has put forward a number of proposed changes to Poland’s pension system. The main suggested change included paying pensions for a limited number of years, instead of till the end of life, in monthly installments.

The IGTE has also suggested that a capital security

fund should be created to safeguard fund members’ money before they retire. The fund managers also proposed a new fee system that would include a performance fee.

The proposal met with strong opposition from the government. Deputy Prime Minister and Finance Minister Jacek Rostowski described the idea to provide pension

money for a limited time as “deeply shocking.”

“Our government does not agree to this,” Mr Rostowski said. “I was sure that by paying monthly installments to pension funds, I’d be guaranteed pensions for life, now they are trying to take that away from us,” Mr Rostowski added.

KW

Millennium bcp to postpone selling its Polish unit Portuguese banking group Millennium bcp is not selling its stake in Polish Bank Millennium, according to sources quoted by Reuters. The Portuguese group will keep the stake until at least the end of next year and look for other ways to pay off state aid, the sources said. Bcp has until 2017 to pay back €3 billion it received from the Portuguese government.

Earlier this year, Rzecz-

pospolita had reported that Bank Millennium would be sold. Millennium bcp denied it, but investors continued to speculate on the sale.

Millennium bcp’s 66 percent stake in Bank Millennium is worth an estimated $1.2 billion. The bank was to be sold in 2011 but a buyer was not found at the time.

Shares in Bank Millennium have gained 3 percent this year, outperforming Warsaw’s

banking index, which shed 5 percent.

Millennium bcp shares surged 31 percent in the same time frame on hopes of a euro zone recovery. “From what I understand, people at bcp have given themselves until the end of 2014 to see whether they will be able to find the funds to pay off the state aid it received,” one of the sources said.

KW

www.wbj.pl

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BUSINESS

www.wbj.pl

APRIL 2-7, 2013

Visa Europe sale could bring Polish banks millions

WSE’s new trading platform to begin operation this month

European banks reportedly want to sell the entity to its US counterpart

The bourse hopes that the new system will attract new investors, but some financial institutions aren’t ready

The European banks that own Visa Europe are considering selling it to US-based Visa Incorporated, The Wall Street Journal reported last week, citing sources close to the case.

Both companies are separate entities, with Visa Europe being a minority shareholder in Visa Inc. While the US company has an option to buy shares in the European organization, Visa Europe has the right to sell them to Visa Inc. The value of the transaction could reach $3 billion, WSJ’s sources claim, although some analysts claim it could be worth as much as $11 billion. Visa Europe has 3,000 members in 36 countries, including a few Polish banks. Poland’s largest lender, PKO BP, even has a representative on Visa Europe’s board of directors.

The transaction, if it were to go through, could drastically change the landscape in the card-payments sector in Europe. In the last fiscal year alone (ending on September 30, 2012) Visa Europe’s fee rev-

The deal could radically change the landscape of the card-payments market in Europe enue was €1.11 billion.

Although Visa Inc. will have to spend a sizable amount if the deal is made, the company’s gain in terms of international market share will more than make up for the expenditure: Visa Europe is the largest card network in the EU. Moreover, the purchase would expand the company’s presence in rapidly growing markets such as Poland and Turkey.

Visa Europe’s owners say that if they manage to sell their shares, they would want to start a new payment system in its place, according to the report. “[Starting a new system] won’t be easy, but definitely possible,” explained Robert ¸aniewski, president of the Foundation for the Develop-

ment of Non-cash Payments (Fundacja Rozwoju Obrotu Bezgotówkowego). “The market is still not completely saturated. Every new system working on a European or a national level could change the market completely and make it more competitive.”

For the moment, neither side wants to comment on the potential transaction, but Visa Europe has a board of directors meeting scheduled for April, where the sale is reportedly set to be discussed. The European entity claims that its cooperation with Visa Inc. is complicated because of the different financial regulations in Europe and the US, and they would be better off with their own system.

Jacek Ciesnowski

The Warsaw Stock Exchange has set April 15 as the launch date for its new Universal Trading Platform (UTP) which will replace the WARSET system that has been in use since 2000.

The bourse claims that the UTP is faster, more secure and can handle more operations than the one currently in use (20,000 orders per second as compared to 850 that the current system can handle).

Its biggest advantage, though, might be that it’s compatible with the systems used on stock exchanges owned by NYSE Euronext, including those in New York and London. It will also allow for more algorithmic trading (that is, the use of electronic platforms with pre-programmed trading instructions that don’t require human intervention) in Poland. The bourse’s management believes that the new system’s speed and compatibility

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Stock exchange

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M&A

The WSE hopes to see trade go up after it implements the new platform with world markets will attract new investors to WSE. Not everyone is happy with the planned changes, though.

Out of 57 financial institutions and brokers that are official members of the WSE, only 41 have said they are ready to switch to the UTP. Even though 200 tests have been run and the system has been available to all WSE members for over a year now, some claim

they’re still not ready and need more time.

WSE officials claim they will not budge and the change will be executed as planned.

“We shouldn’t delay the implementation of the system any further, but rather complete it in a manner that is safe for the market,” said Adam Maciejewski, CEO and president of the Warsaw Stock Exchange. Jacek Ciesnowski

Media patronage

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Is democracy working for Europeans? How can politicians regain the people’s trust?

Top European politicians and businesspeople searched for an answer to the question of the kind of leadership style needed in Europe today at a conference hosted by former Polish President Aleksander KwaÊniewski in late March.

During a panel discussion, Giuliano Amato, former prime minister of Italy, said that Europeans today had little sympathy for politicians and believed that being a politician involves “privileges without any sacrifices.”

“This is of course not true because being in politics involves a lot of sacrifice, but most people don’t see it that way,” Mr Amato said, adding that the real question was how to change that perception in order for the voter-politician relationship to be seen by both sides in a more realistic light.

Credibility gap

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

Meanwhile José Maria Aznar, former head of Spain’s government, said politicians today “lacked

COURTESY OF THE EUROPEAN EXECUTIVE FORUM

Leadership for Europe in the 21st century

credibility in the eyes of voters” and had to find a way to change the situation before people are ready to follow them.

The former Spanish PM bristled, however, at Mr KwaÊniewski’s suggestion that due to the current economic turmoil in Spain, democracy itself could be under threat in that country.

“We don’t have a problem with democracy in Spain.

What we could have is a problem with populists who will use the democratic system to get into power and then abuse that system after having gotten that power,” said Mr Aznar.

Mr KwaÊniewski also provocatively wondered

aloud whether the Chinese growth model, one not involving democracy, could appear increasingly attractive to Europeans, fed up with constant news of crises and inertia in their political and economic system. Here, Mr Amato, Mr Aznar and Jan Krzysztof Bieliecki, a former Polish prime minister, all agreed that democracy is the only system acceptable in Europe today.

Consensus was also reached on the fact that the kind of leadership needed in Europe currently is not one of Napoleonic, authoritarian fashion, but rather a conciliatory and partnership-oriented style of leadership.

Remi Adekoya

FINANCE & ECONOMICS

APRIL 2-7, 2013

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Budget deficit at z∏.21.68 bln in February

Entitlements

BCC: Poland needs ‘radical’ economic reform Without radical decisions, Poland could be in trouble soon, says a prominent business advocacy group Poland will face serious problems in a couple of years if it does not introduce economic reforms and changes to uniformed services’ pensions, as well as if it doesn’t curb miners’ benefits, said Marek Goliszewski, head of the Business Centre Club (BCC), Poland’s largest

assessment of Prime Minister Donald Tusk should be made in both political and economic contexts. “As a politician, I can give him a high score of 6 out of 10, but as an organizer of the economy – he will only get two points,” Mr Goliszewski said, explaining his critical assessment came as a result of growing public debt, a high deficit and a lack of social insurance reforms.

According to BCC chief economist Stanis∏aw Gomu∏ka, Poland’s main problem is that

organization of private employers.

“The economy needs radical decisions. Unfortunately, it is unlikely that the government will curb miners’ privileges or reform the uniformed services’ pension system. This will backfire. We will all have to pay for it,” Mr Goliszewski said.

At a special meeting on Monday, experts from the BCC Shadow Cabinet reviewed the activities of the government and particular ministries.

Mr Goliszewski said that an

the government and the finance minister are passive in their approach to reforming public finances. In his opinion, keeping the deficit at the level of 3.5 percent at the end of year will be extremely difficult in view of the economic downturn and rising unemployment. However, he praised Poland’s successful negotiation of the new EU multi-annual budget for 20142020 and the return to the discussion on euro zone entrance.

The BCC experts were also approving of the government’s

activities related to utilizing EU funds and defense policy, while they were most critical of the ministers’ activities in infrastructure, social insurance and the State Treasury.

The shadow cabinet of the Business Center Club, Poland’s largest alliance of private employers, was created in April 2012 to support reforms, monitor the work of ministries that are crucial for business and recommend changes facilitating Poland’s economic growth.

Aleksandra S∏abisz

Morgan Stanley: Poland’s interest rates to rise in 2014 According to Morgan Stanley, Poland’s next move in interest rates will be an increase, probably by 0.5 percentage points.

This is likely to happen in the second half of next year, the bank said.

“Recent data showing weak industrial output and retail sales will not persuade policy

makers to cut the benchmark rate from a record-low 3.25 percent,” Pasquale Diana, an emerging-markets economist at Morgan Stanley in London, said in a report.

“The Monetary Policy Council is set to wait and see for some months, and we think there are no further cuts from

limits consumer spending and reduces inflows to state coffers. The budget deficit reached 61 percent of this year’s target at the end of February as the tax take declined.

AS

Poland’s unemployment to fall in April?

Owing to the unfavorable and harsh weather conditions that delayed seasonal work, one should not expect unemployment to fall in March, but the jobless rate will start declining in April, deputy Labor Minister Jacek M´cina said last Tuesday.

The unemployment rate hit 14.4 percent in February 2013, up 0.2 percentage

points from January 2013, Poland’s statistics office GUS reported earlier in March.

The number of Poles without work at the end of February amounted to 2,336,700. There were 82,800 new jobs on the market, up from 64,000 in January and up from 60,800 in February 2012.

AS

Unemployment lines Poland’s unemployment rate (in %), February 2011-February 2013 15

here,” Mr Diana wrote.

The RPP made an unexpected move on March 6, when it cut interest rates by 50 basis points. Still, Marek Belka, head of the National Bank of Poland, said the council could make further cuts if growth turned out below their estimates.

AS

14 13 12 11 10

Source: Central Statistical Office

Prime Minister Donald Tusk

sioner for Economic and Monetary Affairs Olli Rehn said earlier this month that Poland qualified for lifting the procedure.

Poland’s economy is facing its steepest slowdown in 12 years, as rising unemployment

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COURTESY OF KPRM

Tusk: 23% VAT rate unlikely to be reduced in 2014 Poland is “unlikely” to cut its value-added taxes as planned from the current 23 percent to 22 percent next year because the economic slowdown is squeezing tax revenue, Prime Minister Donald Tusk said on Tuesday.

“We would have to see a radical improvement in the second half of the year to be able to reduce VAT. It looks unlikely to me,” he said.

The government planned to reduce the standard VAT rate back to 22 percent in 2014 after raising it to 23 percent in 2011. The reduction of VAT was to be contingent upon the EU lifting the excessive debt procedure against Poland in 2013. The chances for the latter are good. European Commis-

7

Poland's budget deficit was at z∏.21.68 billion at the end of February, the Ministry of Finance announced. Earlier estimates from the ministry had put the deficit at z∏.21.65 billion.

The February figure is 61% of the plan for 2013.

Poles saved z∏.79.1 billion on taxes in 2011 The money saved by taxpayers on all kinds of tax write-offs and exemptions in Poland in 2011 amounted to z∏.79.1 billion, the Ministry of Finance said in a recently published report. This amount stands at 5.2% of GDP. In 2010, the value was z∏.73.8 billion. The rise of z∏.5.3 billion came despite an increase in the highest VAT tax rate to 23% and the canceling of a number of tax writeoffs.

Shale gas production may cost z∏.250 bln Companies exploring for shale gas in Poland may have to spend up to z∏.250 billion by the time the exploratory stage is complete, industry representatives estimate. “A portion of the sum may come from abroad, but the solutions proposed so far have not been satisfactory for investors,” said Marcin Zi´ba, the CEO of the Polish Exploration and Production Industry Organization. He explained that current regulations could discourage investors. ●

8

INTERVIEW

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Poles don’t want the euro A recent poll by Homo Homini shows that a majority of Poles are against adopting the euro. As many as 62 percent of the respondents said that they were against entering the euro zone, while 32 percent approved of adopting the common currency and 6 percent were unsure. The survey was carried out on March 22, when the Cyprus crisis remained unresolved.

Five banks dominate market The five largest Polish banks have a combined 63.5 percent share in the total number of personal bank accounts in the country. What’s more, they accounted for 550,000 of the 1.56 million new accounts registered in 2012. The two largest banks secured their leading positions. PKO BP has 6.22 million accounts and saw 74,000 new ones registered last year, while Bank Pekao has 3.41 million and opened 52,600 new ones in 2012. ●

APRIL 2-7, 2013

Polish-Russian relations

Less than perfect WBJ sat down with Alexander Alekseev, Russia’s ambassador to Poland, to talk about Polish-Russian relations in the contexts of politics, economics and culture Ewa Boniecka: How do you assess the current state of relations between Russia and Poland?

Alexander Alekseev: The state of relations between Russia and Poland is ambiguous. We have a lot of contact and there are some aspects of our relationship which are positive.

An example is our progress in realizing an agreement on local border traffic in the area of Kaliningrad and regions close to it in Poland. The agreement has been signed and has been functioning since July 2012.

I would very much like more such progress and concrete ventures in our relations to continue. But our mutual understanding is less than perfect and we have a lot to improve on when it comes to the atmosphere of our relations.

What solution do you envisage regarding the thorny issue of the wreckage of the

TU-154 plane, which crashed in Smolensk, Russia in 2010 resulting in the death of President Lech Kaczyƒski and 95 others? The wreckage still hasn’t been returned, much to Poland’s displeasure.

I do not see it as a problem at all. Of course, the wreckage has to stay in Russia till the end of our investigation. I am surprised at the amount of rumors here, because we have been passing on the information about the investigation to our Polish colleges. It is not a political issue, but a legal one.

Maybe you want to keep the wreckage for good?

Not at all. That would be impossible. The plane wreckage belongs to Poland. We will give it back to Poland after concluding all the necessary legal procedures. And I would like to stress again that it is not a political issue, but a legal one. It is not a political obstacle to our relations, because

this issue is regulated by a legal framework. All Polish investigators have direct access to the wreckage, so it is not a problem for your investigation to proceed.

What role does history play in Poles’ and Russians’ attitudes towards each other?

The perception of history in Poland and Russia is very dif-

Poland and perhaps this is the line to follow.

In Poland’s relations with Russia, history is used as a tool in many political campaigns. In fact, it is not a question of history but an argument against Russia. We know that there have been some historical problems in RussianPolish relations, but our attention is focused on actions in

“I don’t know any other country where Russian investors encounter so many difficult problems.” ferent. In Poland, it is the subject of an anti-Russian campaign. And it is a huge problem in making the relations between our countries move forward.

I try to explain to my Polish friends that in Russia we have also had many problems with our history. If our Polish friends would like to present a list of their requirements regarding historical issues – then we are ready to present our list of requirements to

our bilateral relations and especially towards future cooperation.

Is history as important to the average Russian as it is to the average Pole?

History is important to the average Russian, but not in the way it is to a Pole. Historical considerations are put in the context of today’s challenges. And we do not want to place our relations with European countries in the frame-

work of historical considerations.

What impact has the global financial crisis had on Russia’s economy and on PolishRussian economic relations?

This crisis is continuing and it has had an impact on the Russian economy, mostly in the energy and industrial sectors. Now the situation is much better and in 2012 we had 3.7 percent GDP growth.

But the crisis has influenced Polish-Russian economic relations. In the years 2008-2009, we had a roughly 30 percent decrease in our bilateral trade. Now, the situation is much improved and I am happy to tell you that Polish exports to Russia have been increasing.

Poland has a deficit in its trade with Russia, as the value of our exports to Poland is much larger than that of our imports from Poland. According to Russian statistics, last year, the value of our bilateral trade stood at $28 billion.

Meanwhile, Russian exports to Poland amounted to $20.5 billion.

INTERVIEW

APRIL 2-7, 2013

fit of the Polish society, so it is necessary to prevent Russian investors from interfering in your market.

I don’t know any other country where Russian investors encounter so many difficulties. So our society is losing interest in investing in Poland. This is not an economic problem but a political one.

EAST NEWS

How is the development of ties between Russia and the European Union influencing our bilateral relations?

It is natural that we have different relations with particular members of the EU. Each country has its own interests and our relations with them have to be taken into account.

It is not a political decision; it is a natural reaction to the differing national realities.

Since some nations are very interested in having close relations with us, we do not have to look so far to develop relations with other countries.

Developing relations has to be mutual.

Alexander Alekseev, Russian ambassador to Poland Poland is one of our key partners and its share of Russia’s foreign trade turnover stands at 3.3 percent. Our country is number-two when it comes to Poland’s foreign trade. We are the secondbiggest importer of Polish products (after Germany) whereas our products are in fifth place when it comes to goods imported by Poland.

Poland imports a huge amount of gas and oil from Russia and we pay higher prices for them than some other European countries.

Why is that?

First of all, the supply of gas and oil as with other articles is a matter of negotiations and price is a part of those negotiations. Secondly, you have to take into account not only the commercial aspect of our agreement, but also general circumstances. Sometimes, Russian society is involved in

the process and the distribution system is taken into account as well. So it is natural that oil and gas prices are shaped differently for various countries.

As I understand, you are justifying a situation whereby Poland pays more for gas and oil than other countries by pointing to circumstances other than commercial ones – is that correct?

I am not justifying the situation, only explaining it is a matter of circumstances. It has to be viewed in context of the whole economic relationship between our countries.

And I take it our economic relations are not going as smoothly as those, for instance, between Russia and Italy or Germany?

There are many countries in the European Union that have been more successful in

economic relations with Poland than Russia. I have to point to two different aspects of Polish-Russian economic relations: commercial exchanges are going on, but more modern forms of cooperation like investment are in weak shape.

There is no Russian investment in Poland, while Polish investments in Russia are welcome. The problem of Russian investment in Poland is the issue of access to the Polish market for our capital.

We have an open market. So what is the problem for Russian investors in Poland?

Yes, your market is open, but a lot of problems occur if a Russian shows the the will to invest in Poland. There are political obstacles at both government and local levels. A member of the Polish government stresses that the privatization process is for the bene-

There are changes going on in political structures around the world with the growing role of China, India and Brazil. How does this shape the global policy of your country and your attitude towards Europe?

We have several priorities in our foreign policy. One of our top priorities is Europe. We are part of the same civilization; it is impossible for Russia not to be involved in European affairs. We are paying a lot of attention to the European Union as it is. The European Union is one of our privileged partners.

During this interview I have pointed to the different Russian attitudes towards relations with some members of the EU, but I would like to underline that Russia has very strong and very sophisticated tools in relations with the European Union as a whole.

We have special relations with Brazil, China and India.

With China we have a strategic partnership and our strategic goals are very similar to one another’s. We are also working on our economic relations especially with China.

We have close relations with India. Ever since the country has been independent, we have had perfect relations with India. We are sharing our experience and knowledge with our Indian friends and we are cooperating with

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India, as much as with China, in military matters. And as for Brazil, we have very good relations in the framework of the BRICS group (Brazil, Russia, India, China, and South Africa). We appreciate this forum very much with its political and economic ties.

In view of the continuation of “reset” in Russian-American relations, why does Moscow still hold a negative approach towards the installation of an anti-missile system and a small American base in Poland?

There are no small bases; what we are talking about is a network of bases around the Russian territory. We have strong evidence that these bases, which would be installed in Poland and some other countries, could pose a threat to our nuclear capacity.

This is absolutely unacceptable for Russia.

How does this Russian stance relate to developing your relations with the US? It is a part of our relations with the United States as well as our relations with NATO. It is a huge obstacle and we will continue talks with the US to seek the final solution and compromise on this issue.

We have to be sure that the American capacity is not in a position to threaten our nuclear security. We have good relations with the US, but we have to talk about the issue of bases and confirm that it is not a move directed against us. These talks should be sufficient to resolve the matter.

How do you assess the longerterm impact of the much increased Polish-Russian cultural ties, the presence of modern Russian plays in our theaters and Polish artists’ exhibitions in the Pushkin Museum in Moscow and other famous galleries?

Culture is a crucial part of our relations. Russian culture is rich and in great demand in Poland. Also, Polish culture has awoken great interest in Russia. Polish cinema and music are present all over Russia. We can already talk about a boom in our cultural relations. I had the pleasure to deliver a Russian award to Polish theater director Kristian Lupa. And this revival of cultural ties between our countries should help contribute to better mutual understanding. ●

9

BG˚ in huge bond issue Bank Gospodarki ˚ywnoÊciowej (BG˚), the Polish unit of Dutch Rabobank, has signed agreements on the issue of debt securities worth z∏.3.5 billion. The issue proceeds will be spent on financing new loans granted by the bank. The bank plans to issue deposit certificates and corporate bonds with a nominal value of up to z∏.2.5 billion. The issue underwriters are Bank Handlowy, Bank Pekao, BRE Bank and ING Bank Âlàski.

Fewer Poles get mortgages The number of mortgage loans granted in Poland fell by 12.5% in 2012, credit information unit Biuro Informacji Kredytowej (BIK) said.

Banks granted 217,000 such loans last year, which is 31,000 fewer than in 2011. Only 9% of the loans were granted in foreign currencies.

Fewer tourists this year The number of foreign tourists visiting Poland is expected to decline in 2013, as is the value of their money spent in the country. The Institute of Tourism forecasts that 14.7 million foreigners will visit Poland in 2013, compared to 14.8 million in 2012. The number is then expected to rise to 15 million in 2014 and to 15.4 million in 2015.

Poland lags behind in innovation Poland is one of the least innovative countries in the European Union, according to a report prepared by the European Commission.

The only countries that ranked lower are Bulgaria, Romania and Latvia. Poland’s growth in spite of the crisis did not translate into a more innovative economy. ●

10

OPINION & ANALYSIS

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APRIL 2-7, 2013

Commodities on the rise T

he commodity super-cycle – in which commodity prices reach ever-higher highs, and fall only to higher lows – is not over. Despite the euphoria around shale gas – indeed, despite weak global growth – commodity prices have risen by as much as 150 percent in the aftermath of the financial crisis. In the medium term, this trend will continue to pose an inflation risk and undermine living standards worldwide.

For starters, there is the convergence argument. As China grows, its increasing size, wealth, and urbanization will continue to stoke demand for energy, grains, minerals, and other resources.

For example, the US consumes more than nine times as much oil as China on a per capita basis. As more of China’s population converges to Western standards of consumption, demand for commodities – and thus their prices – will remain on an upward trajectory.

Not created equal

Reserve price There is also the issue of the socalled reserve price (the highest price a buyer is willing to pay for a good or service). The reserve price places a cap on how high commodity prices will go, as it is the price at which demand destruction occurs (consumers are no longer willing or able to purchase the good or service).

For many commodities, such as oil, the reserve price is higher in emerging countries than in developed economies. One explanation for the difference is accelerating wage growth across developing regions, which is raising commodity demand, whereas stagnating wages in developed markets are causing the reserve price to decline. By implication, if nothing else, global energy, food, and mineral prices will continue to be buoyed by seemingly insatiable emerging-market demand, which commands much higher reserve prices.

Ultimately, emerging

economies’ absolute size and rate of growth both matter in charting commodity demand and the future trajectory of global commodity prices, with per capita income clearly linked to consumers’ wealth. If people feel rich and enjoy growing wages and appreciating assets, they

is a stark reminder that such tendencies are not limited to emerging-market politicians.)

Such price increases can prove particularly inflationary in countries that import commodities. And they can be disastrous to exporting economies, which risk rapid cur-

“Oil prices are more likely to hover near $120 per barrel over the next decade, rather than $50; and we are unlikely to see a $20 barrel of oil ever again.” are less inclined to cannibalize other spending when commodity consumption becomes more expensive. They just pay more and carry on.

Supply-side challenges Of course, upward pressure on commodity prices also stems from supply-side challenges. It is not just that global supplies of resources are increasingly scarce, but also that supplies are increasingly falling into inefficient hands.

Around the world, governments are taking greater control of resources and imposing policies that hamper global production and ultimately force prices higher. (Following the recent fracas surrounding Argentina’s nationalization of Yacimientos Petrolíferos Fiscales [YPF], Australia’s 2012 mining tax on iron and coal companies

rency appreciation and thus a loss of competitiveness.

Of course, technological advances, like hydraulic fracturing (“fracking”) in the shale-gas industry, could increase supply and therefore lower prices. But mounting environmental challenges, and the limited availability of commodity substitutes, suggest that a reprieve on commodity prices is not near.

Short-term focus There is a perennial temptation to focus on – even to overemphasize – the short-term, tactical drivers of commodity-price movements, at the expense of giving longer-term, structural factors their due. While short-term factors – for example, political instability, weather-related disruptions, and speculative activity – are important determinants of prices, they tell only part of the story.

The economic fundamentals of supply and demand remain the key factors in driving the direction of commodity prices and determining whether the commodity super-cycle will persist. In practical terms, this means that oil prices, for example, are more likely to hover near $120 per barrel over the next decade, rather than $50; and we are unlikely to see a $20 barrel of oil ever again. ● Dambisa Moyo is the author, most recently, of “Winner Take All: China’s Race for Resources and What it Means for the World.”

Copyright: Project Syndicate, 2013.

Project-syndicate.org

SHUTTERSTOCK

Of course, not all commodities are equal. For example, although the case for copper seems straightforward, given that it is a key input for wiring, electronics, and indoor plumbing, a strong bid for iron is not as obvious, given the Chinese infrastructure boom that already has occurred in the last two decades.

Worst-case estimates have China’s real GDP growing at around 7 percent per year over the next decade. Meanwhile, the supply of most commodities is forecast to grow by no more than 2 percent annually in real terms. All else being equal, unless China’s commodity intensity, defined as the amount of a commodity consumed to generate a unit of output, falls dramatically, its demand for commodities will be greater this year than it was last year.

As long as China’s commodity demand grows at a higher rate than global supply, prices will rise.

And the rapid

economic growth that China’s leaders must sustain in order to lift enormous numbers of people out of poverty – and thus prevent a crisis of legitimacy – places a floor under global food, energy, and mineral prices.

To be sure, intensity of use has fallen for some commodities, like gold and nuclear energy; but for others, such as aluminum and coal, it has risen since 2000 or, as is the case for copper and oil, declines have slowed markedly or stalled at high levels. As the composition of China’s economy continues to shift from investment to consumption, demand for commodity-intensive consumer durables – cars, mobile phones, indoor plumbing, computers, and televisions – will rise.

Dambisa Moyo

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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11

A new business model for Cyprus

Javier Solana

cubic meters of recoverable natural gas and 1.7 billion barrels of oil. Given their geographic location, however, these incredible reserves can be uncapped, extracted, and exported only on the basis of inter-state cooperation.

SHUTTERSTOCK

O

nce again, Europe has peered into the abyss. But the tentative agreement between Cyprus and the troika (the European Commission, the International Monetary Fund, and the European Central Bank) probably means that the worst has been avoided. Big losses for large depositors in Cypriot banks will now be imposed, and the country’s second-largest bank will be shuttered. Looking ahead, however, Cyprus has the means not only to recover, but even to heal its longstanding division with the Turkishbacked statelet in the north of the island.

Cyprus, of course, is just the latest country to be hit by the economic crisis surging through the Mediterranean. For years, Cyprus had an immense banking bubble, with the sector’s assets estimated at roughly seven times the country’s GDP, as foreign money poured into a tax haven within the euro zone’s secure environment.

The end of a moneylaundering paradise The design of the bailout has been shaped both by domestic pressures faced by euro zone leaders and by the exceptional nature of the Cypriot banking bubble: many European leaders suspect that the island had become a money-laundering center for Russian individuals and entities, which pumped an estimated €68 billion into the country’s banks.

Regardless of the details of the ultimate deal, the risk is that the ghost of Russia’s bailout of Cyprus in 2011 could provoke severe side effects across Southern Europe, both for governments’ borrowing costs and for small savers.

Nevertheless, it is imperative not to lose sight of some very valuable assets that Cyprus holds – assets that could mean the country’s economic salvation.

Cyprus has natural wealth In 2011, the American energy company Noble discovered some 200 billion cubic meters of gas in the Eastern Mediterranean – the value of this block, known as the Aphrodite gas field, has been estimated at some €80 billion. Work has already begun on extraction, with production expected to commence in 2018. Experts say that the reserves could provide some 100 years of energy for Cyprus – and an alternative supply source for energy-hungry Europe. In fact, in the search for an acceptable bailout package, the future revenues from these assets were at one point considered as possible guarantees.

The United States Geological Survey has estimated that the Levant Basin, which extends across the Israeli, Cypriot, and Lebanese seabed, contains some 3.45 trillion

As with all marine gas and oil deposits, the rights to the waters and the riches below are critical. And, given such riches, competition might appear lucrative at first sight. But cooperation stands to enlarge the pie.

Moreover, economic agreements may promote closer cooperation in other realms. Energy matters have

agenda. Naturally, much will depend on how he fares politically in the current turmoil surrounding the bailout package. Mr Anastasiades, a member of the pro-European Dimokratikós Sinayermós (Democratic Rally) party, won 57 percent of

“Beyond today’s tempest, there is light on the horizon.” already led to an unprecedented warming in relations between countries such as Israel and Cyprus in recent years, with an agreement signed in 2010 formally delimiting these states’ respective exclusive economic zones. It is not unimaginable that this type of cooperation could be extended to include other neighbors around the Levant.

The good news The good news is that Cyprus’s newly elected president, Nicos Anastasiades, may be open to such an

the popular vote on a platform that emphasized economic recovery, and this will naturally be his top priority.

Nevertheless, a cautious look beyond the current turbulence – and into Anastasiades’s history – provides grounds for optimism.

In 2004, Anastasiades and his party supported the Annan Plan, developed by former United Nations Secretary-General Kofi Annan and supported by the European Union.

Mr Annan’s reunification proposal provided the blueprint for a “United Republic of Cyprus” comprising a

federation of two states.

When put to a referendum, roughly two-thirds of the island’s 250,000 Turkish Cypriots in the north supported the Annan Plan, but 76 percent of the 860,000 Greek Cypriots in the south rejected it. It is not inconceivable, however, that Mr Anastasiades’s victory could provide impetus for reopening the dialogue between the island’s north and south – that is, once the current crisis has passed.

Such an outcome would be a major breakthrough for Cyprus and the region. Resolving the island’s longstanding division would nest Cyprus more comfortably in the EU, and the economic effects would be manifold, extending throughout the eastern Mediterranean.

welcome budget relief.

And the Kurdish rebel leader Abdullah Öcalan’s recent call for a ceasefire is an encouraging sign that Turkey, too, stands to benefit from a peace dividend.

Greek Prime Minister Antonis Samaras’s visit to Istanbul in March was a heartening sign that tensions between Greece and Turkey are already beginning to ease. A deepening of cooperation in the eastern Mediterranean would provide myriad economic opportunities, not least the many related to developing the region’s cross-border maritime gas reserves.

Mr Anastasiades has endured a perfect economic storm during his first month in office, and the current crisis is certain to continue to dominate his agenda. But, beyond today’s tempest, there is light on the horizon. Cyprus, and its neighbors, must now pull together to reach it. ●

Greek-Turkish relations For example, both Turkey and Greece could reduce their military spending (though naturally to varying degrees, given their respective geopolitical environments). Greece is the second-largest defense spender, relative to GDP, in the EU. Clearly, in today’s economic climate, savings here could provide hugely

Javier Solana was EU High Representative for Foreign and Security Policy, Secretary-General of NATO, and Foreign Minister of Spain. He is currently president of the ESADE Center for Global Economy.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

12

COVER STORY

www.wbj.pl

Exclusive interview

LithuanianPolishUkrainian battalion

Remi Adekoya

Debate and persuade

An agreement on the formation of a LithuanianPolish-Ukrainian battalion could be signed by the governments of the three countries in the second quarter of this year, Poland’s Defense Minister Tomasz Siemoniak announced. “We expect that the training of brigades may begin in fall,” Mr Siemoniak said.

WBJ sat down with former Polish president, co-creator of the Democratic Left Alliance and current leader of a new center-left initiative Europe Plus, Aleksander KwaÊniewski, to discuss the way forward for the EU, how Europe could elect a president, Poland’s foreign policy and his political plans for the future

Pole discovers new planet A 33-year-old Polish IT professional made news as the discoverer of planet PH2b, outside the solar system. The amateur astronomer, Rafa∏ Herszkowicz, was the first person to notice and mark the planet using web service Odkrywcyplanet.pl, the Polish version of the international project Planet Hunters, which provides users with data from the NASA Kepler space mission.

COURTESY OF THE WORLD ECONOMIC FORUM

Foreign debt at €276.1 billion in Q4 2012 The National Bank of Poland said that Poland’s total foreign debt rose to €276.1 billion in the fourth quarter of 2012. In the third quarter, it amounted to €273.045 billion. Longterm debt increased to €223.1 billion from €217.075 billion in Q3 2012, while short-term debt fell to €52.948 billion from €55.970 billion. ●

APRIL 2-7, 2013

Remi Adekoya: Last week, Poland’s Foreign Minister Rados∏aw Sikorski laid out the country’s foreign policy priorities. Did the speech signal any big changes?

Aleksander KwaÊniewski: I didn’t notice any big changes.

There were no surprises, turnabouts or resets. However, I think what is important is that the speech did indicate a change in emphasis.

When I was president [from 1995-2005], our foreign policy priority was to focus on transatlantic relations because we wanted to ensure Poland’s security and its entry into NATO. Relations with the United States were therefore crucial to us. Our second priority was the European Union.

Today, the most important aim of our foreign policy is to strengthen the EU as an organization and strengthen Poland’s position within that organization. If Poland wants to play a role in the new global framework, it can only do so as an active and significant member of the EU. Alone, we won’t get very far. Of course, we are a member of NATO today and strengthening relations with the US remains important, but our direct relationship with Washington is now being viewed in its proper perspective.

Historical friendship is important and good, but Poland is never going to be a significant strategic partner for America. It is the EU that can be such a partner. So we should be trying to ensure that the EU has a cohesive, sensible vision of its future and its ties with the US.

COVER STORY

Mr Sikorski suggested in his speech that Poland has the chance to access the inner circle of EU decision-makers. Is that a realistic assertion?

Yes, very realistic. What’s more, I feel that the current government [of Prime Minister Donald Tusk] is not using its opportunities very well.

Right now, Europe is under reconstruction and needs new engines.

The two main engines, France and Germany, are doing fine and that’s great. But some of the other centers of gravity, such as Italy and Spain, have problems. Conse-

it heralded the beginning of a Polish doctrine, proof that our ideas are shaping Europe.

But things have been quiet since then and today we focus on the technicalities of EU membership such as how much money we receive from its budget. That is important of course, but right now Poland is not showing any real vision. We support the open-door policy for would-be EU members but why don’t we speak up about this? I know there is a crisis and that is limiting, but the government has wrongly adopted a wait-and-see attitude.

If Poland were to campaign

Europe closer to a federation?

We have to debate and persuade. Firstly, we must persuade our own citizens. The fact that one minister has a federalist concept does not mean that concept is shared by a majority of Poles.

We need discussion about Europe here in Poland. I am hoping for such a discussion in the debate we are going to have on whether or not to join the euro zone. First, we have to decide the matter here in Poland and then on the European scene where in my opinion, the issue of federalism must be resolved once and for all.

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13

COURTESY OF EUROPEAN UNIVERSITY INSTITUTE

APRIL 2-7, 2013

Aleksander KwaÊniewski was Poland’s president for a decade

“We want more European initiatives that bring people together, because all we have right now is the Eurovision song contest.” quentially, there is a need for new European powerhouses. I see two countries that could step in to play that role, Poland and Sweden.

Why those two?

They are relatively big countries. They both look good economically, the crisis is affecting them less than others. Both have yet to join the euro zone and I believe that their accessing it would strengthen the currency union.

Both countries are predisposed towards playing a role in building a common European foreign policy. They have already started. In fact, it is because of Poland and Sweden’s support for the Eastern Partnership program that it has become official EU policy towards countries in Poland’s eastern neighborhood, such as Ukraine and Georgia.

Again, I think the government is not using all its opportunities to press forward Poland’s case. Mr Sikorski’s Berlin speech last year calling for a European federation was very interesting and I thought

loudly for an open-door policy, that could thrust us into that decision-making circle. We have the competence, historical experience and we are trusted in Europe.

These advantages could make us a country that keeps close relations with other nations in the neighborhood and leads them into the European fold. We need to show we have ideas for Ukraine, for Belarus, show we cooperate with Moldova and are open to the EU aspirations of the Baltic nations.

That would make us a regional center, which other countries feel they can depend on. It would make us a country through which others could appeal to the EU for greater consideration towards them.

So you support Mr Sikorski’s calls for a European federation?

Yes, I do. And I regret that the topic was brought up once and then neglected.

What do you think Poland can do, realistically, to bring

Could the recent crisis in Cyprus have far-reaching consequences in the future?

I don’t think there will be farreaching consequences. The Cyprus situation was an element of the crisis we have been experiencing for some five years now. We created a currency union but we didn’t adhere to the rules we set up.

And I need not remind you that it’s not only the Greek government that broke the rules of the Maastricht Treaty.

So did Germany …

And France. In 2004, my two good friends, Gerhard Schröder and Jacques Chirac, did not hesitate to break the rules of the Maastricht Treaty. So if the strongest don’t bother with the criteria, what can you expect from the weaker ones?

We didn’t implement institutional guarantees to make sure the market functions properly and we are now paying a big price for that. For a long time, Cyprus exploited the fact that an incredible amount of cash, mostly from Russians but also from Ukrainians and others, was lodged in their banks.

But after the good years come the lean ones. Today, the Cypriot system can’t survive without outside help. Howev-

COURTESY OF KWASNIEWSKIALEKSANDER.PL

Aleksander KwaÊniewski Aleksander KwaÊniewski was born in 1954 in Bia∏ogard, northwestern Poland. He joined the Communist Party in 1977 and was an active member, eventually rising to the position of Sports Minister at the age of 31.

After the fall of communism, Mr KwaÊniewski co-created the Democratic Left Alliance, which was largely made up of former Communist Party members. In 1995, he ran for president, going up against incumbent Lech Wa∏´sa, the legendary Solidarity leader and anti-communist activist.

Mr KwaÊniewski won that confrontation, becoming the second democratically elected president in post-communist Poland. He won re-election in 2000 and left office five years later with approval ratings at 60 percent.

In February this year, Mr KwaÊniewski announced he would be co-creating Europe Plus, a center-left political initiative that would nominate its own candidates for the European Parliament elections scheduled in 2014. ●

er, I did not like the idea of implementing an impromptu tax on deposits there. That is reminiscent of Bolshevik tactics, confiscating people’s money overnight.

I really don’t understand that move. It weakens trust in the banking system and citizens’ rights. What’s worse, the whole operation was a mess.

The European Commission acted like an amateur here.

Once you decide on such a difficult move, you have to execute it in a manner that guarantees 100 percent success.

But I don’t think that even a prolonged crisis in Cyprus could affect the wider European economy. They are simply too small.

Do you support electing a European president?

Yes, I do.

Technically, how could that be handled?

If we want to integrate further and give institutions great powers, then those institutions need to have democratic legitimacy. Citizens can’t believe decisions are made solely in the corridors of power.

There are a couple of steps we could take to involve Europe’s 500 million citizens in the process of EU governance.

Firstly, during elections for the European Parliament, the main parties could apportion a part of their electoral lists to candidates of other European nationalities. Poles would be able to vote for a Frenchman, a German or someone from Luxembourg. We’d get to know who’s who in Europe.

That would be a first step.

The second step would be to hold the elections over the course of two or three days and not a whole week. Right now, EP elections are everywhere and nowhere, but if they were held over two to three days, there would be more media interest, more suspense and people would get more involved.

When it comes to choosing a European president, we could select one day for such a vote. Each country would be able to present a candidate

who would have to garner say, one million signatures of support in at least five EU countries. Only then could he stand for election.

There would be a campaign and candidates would have to travel all over Europe. Finally, we would arrive at a list of five or 10 names, which would be alphabetically presented on a voting list and then we would choose. If no candidate crosses the 50 percent threshold, there would be two rounds of voting.

In effect, we would have someone with a mandate. It would be easier to overcome our national egos and bureaucratic limitations. The whole decision-making process would be smoother because the president would be able to force things through, if necessary. It is really not difficult to imagine. The main obstacle is our egoism.

Are you referring to nationalistic sentiments?

Yes, we still hold on to all that. But I am hopeful because a new generation is emerging. Take language for example. This is a barrier to communication for many Europeans of my generation.

But for the younger generations, that barrier is virtually non-existent. Basic English is understood practically everywhere in Europe among the young and so running a presidential campaign, for example, should not be a problem.

But of course, we should not exaggerate with our ambitions by thinking we can implement such changes very quickly. The EU has 50 years of evolutionary growth and if we try to do things in a more revolutionary fashion, some people could feel excluded and angry. However, if federalist reforms are impossible today, then in 20 years, when people of my generation are in their 80s and [members of the younger] generation in their 50s, it will not be such a big deal. By then it will seem obvious.

Is 20 years a long time?

Considering that we are in a crisis and need fast solutions, it is a long time. But if we look at the EU from a histor-

ical perspective, 20 years is not such a tragedy.

Will politicians who become MEPs on the platform of your latest political initiative, Europe Plus, try to push federalism?

Yes, we are decided supporters of further European integration and expansion. We want more European initiatives that bring people together, because all we have right now is the Eurovision song contest.

I am not comparing the election of a European president to the Eurovision contest, what I am trying to say is we need events that will help build a European identity and European public opinion. Such events remind us that we share more than a common market and free borders. People need to feel they have a say in how they are ruled.

Do you believe the Polish left will unite before the next elections or will the party you created, Democratic Left Alliance, and Europe Plus, which you lead now, have separate electoral lists?

We have more than a year to discuss and negotiate.

According to opinion polls, each of these factions has roughly 10 percent support or a little more. That means if they were to stand for election together, a result of 20 percent or more is very realistic.

So my offer of cooperation to politicians from the Democratic Left Alliance is still open. I have a good memory but I don’t keep grudges so I can put aside all the silly things some of them have said about me recently.

The stakes are too high for that, we need to bring balance to the political scene.

We can’t continue to be squeezed between two rightwing parties.

Jaros∏aw Kaczyƒski’s Law and Justice is very right-wing and Donald Tusk’s Civic Platform is less so, but still conservative. This is not a normal situation for a modern state in the middle of Europe. ●

Warsaw's new office complex Park Avenue scheduled for 2015

Another 5,000 sqm of GLA will be added to Galeria Mokotów in April 15

16

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

Runway work at Chopin Airport Beginning April 2, Warsaw Chopin Airport’s runway 3 was set to close for six months for major repair work. The need for the overhaul stems from natural wear and tear, as the last major work on runway 3 took place nearly 30 years ago. The work on the runway will move the landing threshold 600 meters.

Echo sells three malls Echo Investment has signed preliminary contracts concerning the sale of Echo shopping centers in Radom, Tarnów and Piotrków Trybunalski.

The new owner of the facilities will be London & Cambridge Properties Ltd. The total value of the three contracts is €67 million. ●

In this issue Historic brewery . . . . . . . . . . . .14 Galeria Wilanów delayed . . . . .14 Park Avenue . . . . . . . . . . . . . . . .15 Gdański Business Center . . . . .15 Galeria Mokotów extension . .16 Grzybowska 81 sold . . . . . . . . .16 Wrocław warehouse . . . . . . . . .17 Pałac Szuchów . . . . . . . . . . . . . .17

Historic brewery to be revitalized BRE Bank Hipoteczny will finance the first phase of the Browar Lubicz mixed-use revitalization project in Kraków

scheme.

The first phase of the investment is scheduled for completion at the end of this year and will comprise 137 apartments, ranging from 31.70 sqm to 121.73 sqm, along with 4,600 sqm of retail space and 1,900 sqm of office space. It will cost a total of z∏.100 million and the whole development will cost z∏.200 million.

Originally known as “John’s Brewery,” Browar Lubicz was founded in 1840 by the Jenny family. It was the largest brewery in Kraków at the time. It was acquired by baron Jan Goetz-Okocimski in 1903 and managed to survive both world wars. Nationalized in 1961, it was managed by the Board of Fermentation Industry in Zabrze.

After the brewery was taken over by Okocim in 1968 it was equipped with one of the first block malt-works and a bottling line from the Ger-

Real estate investor Balmoral Properties has secured bank financing for the first phase of its Browar Lubicz revitalization project in Kraków, Ma∏opolskie voivodship, from BRE Bank Hipoteczny. The value of the loan is z∏.70 million.

The mixed-use project is located in a 19th-century brewery near Kraków’s main railway station, only 800 meters from the city’s Main Square (Rynek G∏ówny). The revitalization of the estate and the construction of new buildings nearby, is expected to deliver a total of over 30,000 sqm of residential, office and service space. PORR Polska is the general contractor for the

man Democratic Republic.

For many years the brewery was the biggest manufacturer in the city. When Carlsberg acquired Okocim in 2001, a decision was made to stop production at the brewery.

One of 16 landmarks collectively recognized as the Industrial Heritage Route, the site comprises several buildings protected due to their historic value, including the

Goetz Palace, an administrative building, a former malt house, a staircase tower, a cooling engine room, and a boiler room with a chimney.

Traces of the original layout remain, including passages joining the owner’s residential premises directly with the production plant and a restaurant hall.

Browar Lubicz could be one of the most prestigious

residential estates in Kraków when completed. The company has already sold 51 apartments in the investment.

Balmoral has been active in Poland since 2008. Its portfolio in Poland includes three hectares of land located near Warsaw’s Arkadia mall, where it plans to build some 100,000 sqm of housing and office space.

Karolina Kowalska

COURTESY OF BALMORAL

Real estate developer Rank Progress signed a preliminary agreement to sell shopping mall Galeria Âwidnicka for €25 million.

The buyer is Elsoria Polska I. Rank Progress may still withdraw from the preliminary agreement if it finds another buyer, but no later than September 15. Galeria Âwidnikca is located in Âwidnica in southwestern Poland. It has a total area of 24,000 sqm.

Residential

The first phase of the revitalization of the historic Browar Lubicz brewery will include 137 apartments

Retail

Galeria Wilanów construction pushed back again The development of a mall in one of the capital’s fastestgrowing districts has hit a snag that could delay it for several years WSE-listed developer Globe Trade Centre (GTC) announced that the construction of its Galeria Wilanów commercial center in Warsaw’s Wilanów district won’t be launched in Q1 this year as was expected. The investor hasn’t obtained a building permit yet.

GTC claims it will probably launch construction in Q3 or Q4 of 2013 but the city officials are less optimistic.

According to them, the construction of such a big scheme

is not in line with the local zoning plans. This, they say could delay the opening of the mall by as many as several years. The officials claim that to allow for the construction of Galeria Wilanów, its plans would have to be redesigned and that it would probably take two to three more years.

There are two schemes within the center, designed by

the APA Wojciechowski architectural studio and the Israeli Moshe Tzur design studio.

One is 250 meters long and will offer 60,000 sqm of retail space. The other one, smaller in size, will comprise 16,000 sqm of retail space. Both are set to be built at the intersection of ul. Przyczó∏kowa and ul. Branickiego. The first building’s construction cost is

estimated at €160 million.

The sole developer of the planned Galeria Wilanów, GTC, acquired the remaining 50 percent stake in the investment previously held by Polnord.

GTC has also failed to secure another building permit for the construction of an as-yet unnamed shopping center in Warsaw’s Bia∏o∏´ka dis-

trict, planned on a fivehectare plot at the intersection of ul. Âwiatowida and ul.

Modliƒska.

Founded in 1994 in Warsaw, GTC is active in Central and Eastern Europe as well as in Southeastern Europe. The company has so far delivered a total of some 647,000 sqm of leasable space.

Karolina Kowalska

COURTESY OF GTC

Rank Progress sells mall for €25 million

APRIL 2-7, 2013, 2 LI 18/12

Galeria Wilanów may have to be redesigned – and it may also be delayed by years

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

LOKALE IMMOBILIA – REAL ESTATE

APRIL 2-7, 2013

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15

Office

New office building in downtown Warsaw

HB Reavis lays cornerstone for Gdaƒski Business Center

The Park Avenue project will deliver 13,500 sqm of GLA in the summer of 2015

The development, near Gdaƒski Railway Station, will deliver a total of 95,000 sqm when completed in Q4 2014

Park Avenue’s facade will be covered with glass and sandstone on the ground floor.

Park Avenue’s glass facade on ul. Wspólna will be partly decorated with sandstone, while the tower portion will be mostly covered with steel. The development is scheduled for completion in the summer of 2015. Park Projects is currently in the process of selecting a general contractor for the scheme.

The plot was supposed to be developed in the early

1990s. Ten years later Park Projects was preparing to build an apartment building on the site but later changed its plans.

Park Projects Group is part of an international organization that has been operating on the Polish market since 1999. Among other developments, Park Projects has also delivered the Park Towers project on ul. Pory in Warsaw.

Karolina Kowalska

Developer HB Reavis Poland has laid the cornerstone for its Gdaƒski Business Center office building on ul. Inflancka in Warsaw’s ÂródmieÊcie district, on land that the company acquired from Spanish firm Lubasa last year.

The office project is the investor’s second in Warsaw, after the Konstruktorska BC office building in the

Mokotów district.

Designed by the Warsawbased E&L Architects studio, the 95,000-sqm Gdaƒski Business Center will be developed in two phases. The first phase will comprise a 17storey building A with almost 32,000 sqm and a nine-storey building B comprising 17,000 sqm. There will be a restaurant, a café and an ATM machine in the buildings.

Both schemes are scheduled to be completed in the second quarter of 2014. The date of the start of construction on phase two has not been disclosed, as it will depend on the pace of com-

COURTESY OF HB REAVIS

Developer Park Projects will launch construction on a 14storey office building called Park Avenue in Warsaw this summer. The investment will be adjacent to the 17-storey Hampton by Hilton hotel, currently under construction at the intersection of ul.

Wspólna and ul. Cha∏ubiƒskiego.

Planned as an L-shaped office scheme with a spacious main lobby and parking situated underground, the building will comprise a lower section with seven floors and a higher section with 15 floors.

Both sections will boast terraces overlooking St Barbara’s Church and a nearby park.

The development, designed by the JSK Architekci studio, will consist of 13,500 sqm of leasable space with each of the lower floors occupying approximately 1,300 sqm and the top seven floors comprising 480 sqm each, accompanied by retail space

COURTESY OF PARK PROJECTS

Office

Gdaƒski Business Center is scheduled to be completed in the second quarter of 2014

mercialization of the first phase of the development.

“Gdaƒski Business Center is the best choice for tenants who would like to set their office on the outskirts of the city center, keeping the location’s prestige while saving on costs,” Stanislav Frnka, country CEO, HB Reavis Poland, said in a statement. He added that the project is conveniently situated in the vicinity of the railway station, the Dworzec Gdaƒski subway station, as well as tram and bus stops. It is a five-minute walk from the Old Town and the Arkadia commercial center.

The investment is currently undergoing BREEAM certification for energy efficiency and environmental performance.

Active in five European countries, HB Reavis has to date developed a total of more than 600,000 sqm of office, retail and logistics space. In Warsaw, the company’s plans include the delivery of an office complex near the Warsaw West railway station.

Karolina Kowalska

16

LOKALE IMMOBILIA – REAL ESTATE

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Retail

Grzybowska 81 sold to BPS

Extension of Galeria Mokotów to be finished next month

COURTESY OF ADVANCED PUBLIC RELATIONS

COURTESY OF MADE IN PR

Nearly 5,000 sqm of GLA will be added to Galeria Mokotów after its redevelopment in April Unibail-Rodamco, the owner of the Galeria Mokotów shopping center in Warsaw, has announced it will complete an almost z∏.60 million extension project at the end of April.

The redevelopment, which will add nearly 5,000 sqm of space to the 62,300-sqm mall, began last summer.

The expansion might not be the end to increasing the mall’s space though, as Unibail-Rodamco has applied to the city for a permit to build another wing of the gallery in place of an existing guarded parking lot on ul. Rodziny Hiszpaƒskich.

The extension scheme, which was designed by the Sud Architectes and SMZ Architekci studios, will add a new L-shaped structure with 3,500 sqm of space to the existing building, located on ul.

Wo∏oska in the capital’s Mokotów district.

In addition, the restaurant

APRIL 2-7, 2013

The scheme comprises nearly 10,000 sqm of usable

The extension project cost nearly z∏.60 million area located on the second level of Galeria Mokotów will grow by 1,500 sqm, as new restaurants and recreation areas will be added. The whole investment is meant to deliver more space for restaurant facilities within the mall.

Already-existing shops, such as Peek & Cloppenburg and Zara, will be remodeled and will gain more floor space.

Currently, the shopping center comprises 260 stores and over 2,400 parking spaces.

The mall’s second-floor reconstruction was designed by the Sud Architects Polska

studio, and the expansion project was prepared by SMZ Architekci. The general contractor is Awbud SA. Developed by Globe Trade Centre and opened for business in 2000, Galeria Mokotów has already seen three expansions, one in 2002 and two in 2006. The mall was fully acquired by Unibail-Rodamco in the summer of 2011.

According to a report issued at the end of last year by Jones Lang LaSalle, most Polish shopping malls are undergoing modernization and extension work to meet the

requirements of clients and tenants in times of increasing competition between shopping centers. Older facilities need to be upgraded in order to maintain or improve their market position in relation to newer rivals.

The report finds that by the end of 2014, at least 20 more shopping centers, in addition to the 74 already modernized, are planned for refurbishing.

Currently, Sadyba Best Mall in the capital’s Mokotów district is also undergoing extension work.

Karolina Kowalska

On March 27 developer Unibep sold the perpetual usufruct to its Grzybowska 81 office project in Warsaw to Bank Polskiej Spó∏dzielczoÊci (BPS).

The seven-floor scheme is situated on ul. Grzybowska 81 in Warsaw’s Wola district, near the city’s Warsaw Rising Museum. It comprises almost 10,000 sqm of usable space and a three-level underground parking lot with spaces for 130 cars. The facility was designed by the Grupa 5 Architekci studio.

A preliminary sales agreement was signed back in June 2012, while the investment was still under construction. The agreed gross sales price was z∏.122.549 million, while z∏.69.132 million of the sum

will be used to pay off bank loans Unibep needed to finance the development.

Unibep purchased the 2,248 sqm plot on which the scheme was erected from Pekaes, a transport, forwarding and logistics group, back in December 2010.

This is not the only office scheme in the capital the WSE-listed Unibep is involved in. Together with its subsidiary, Unidevelopment, the company has been working on another office project, named Wola House, since November 2012.

The 11-storey development, scheduled for completion in May 2014, is located on Al. Prymasa Tysiàclecia in Warsaw’s Wola district and will offer approximately 22,500 KEK sqm of office space.

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LOKALE IMMOBILIA – REAL ESTATE

APRIL 2-7, 2013

Logistics

www.wbj.pl

17

Office

Wroc∏aw’s warehouse market growing bigger Griffin to redevelop former Gestapo With the development of a road network, the residence demand for warehouse space is increasing in the capital of Lower Silesia

COURTESY OF JONES LANG LASALLE

Wroc∏aw has strengthened its position as one of the main warehousing markets in Poland, a recent report by Jones Lang LaSalle finds.

According to the study, new roads are driving logistics demand to the city, which is a convenient location for distributors running cross-border operations in Central Europe.

The A4 motorway connects the region to the European highway network and the large Polish urban areas of Katowice and Kraków.

Another key element boosting demand in the region is a sizable and relatively affluent local market, with 2.9 million inhabitants in the region and 0.77 million in the Wroc∏aw urban area alone.

Three nearby special economic zones with numerous investors from the FMCG, automotive, aviation and manufacturing industries also play an important part.

Alongside Central Poland, Wroc∏aw was one of the two

Pa∏ac Szuchów in Warsaw’s downtown will be expanded into an office building

Panattoni Park Wroc∏aw II regions in Poland to register a surge in take-up volumes as compared to 2011. Over 153,000 sqm was leased in 2012 (versus 130,000 sqm in 2011), which was the thirdlargest volume in the country.

The majority of this net demand was generated by logistic operators (33 percent) and automotive companies (32 percent). Lease renewals encompassed 58,000 sqm and accounted for 28 percent of the gross demand (212,000 sqm in 2012).

The immediately available space decreased, with 58,000 sqm remaining vacant at the end of Q4 2012, which translated to vacancy rate of 8.7 percent. Rental levels for warehouse space in Wroc∏aw remained stable during 2012.

At the end of the year, owners of prime assets charged monthly rents of between €3 and €3.8 per sqm. Effective rents, which include additional incentives and exemptions, are lower and span between €2.7 and €3.3 per sqm per month.

At the end of 2012, warehouse stock in Lower Silesia totaled 663,000 sqm, making it the fifth-largest market in the country. Supply increased by 56,000 sqm in 2012, against 40,000 sqm in 2011. The largest projects completed in 2012 include: the built-to-suit building for TJX in Wroc∏aw East Logistics Centre by Goodman (28,000 sqm) and two buildings (10,000 sqm each) completed within Panattoni Park Wroc∏aw II. Karolina Kowalska

Real estate investor and developer Griffin Group has announced it will redevelop the historic Pa∏ac Szuchów on Al. Szucha 6 near Plac Unii Lubelskiej in the capital’s ÂródmieÊcie district.

A new seven-storey boutique-office building, comprising 4,400 sqm of space, will be developed behind the existing property, while its facade will extend to that of the edifice, giving the impression that the two buildings are a single unit.

Construction on the scheme will be launched in the summer of 2014 and will last a year and a half.

Griffin CEO Przemys∏aw Krych said that the planned building has already begun attracting future tenants: there have been offers from three embassies and several law firms.

While the new building is being constructed, the 900-sqm Neo-Renaissance Pa∏ac Szuchów will be refitted to make it fully accessible to the disabled.

The development was designed by renowned pre-war architect Jan Bagieƒski and built in 1912-1913. It was acquired by Griffin Group in 2011 from the bank that bought it from the owners, the Gawroƒski family, and underwent extensive revitalization.

The new owners have restored the palace in accordance with the requirements set

by Warsaw’s curator of historical buildings at a cost of several hundred thousand z∏oty. Renovators found over 30 kilometers of wires in the walls, as the palace served as the residence of the head of the Gestapo in Poland during the Nazi occupation.

According to legend, the building then served as the Warsaw offices of SMERSH, an umbrella organization comprising three independent counterintelligence agencies in the Red Army.

The building was later used as the location of Polish counterintelligence forces in the communist era and the Embassy of Federal Republic of Germany before 1990.

Karolina Kowalska

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THE LIST

APRIL 2-7, 2013

www.wbj.pl

19

Motor industry and freight

Car Fleet Management Firms Ranked by size of car fleet (as of March 2013)

Rank

A guide to Polish business and industry

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Company name Address Tel./Fax E-mail Website

Size of car fleet (number of cars)

Revenue from fleet management (z∏. mln)

Total revenue (z∏. mln)

Nuber of new contracts signed

Total number of employees / Year founded in Poland

Ownership: Polish / Foreign

Top local executive / Title

17 (Warsaw; Gdaƒsk; Bia∏ystok; Bydgoszcz; Szczecin; Olsztyn; Netia; Philip Morris Wroc∏aw; Katowice; Long-term leasing; fleet management; TP; Polska; Nordea Bank Koszalin; Zielona Góra; leasing Polska; Grupa Siemens Lublin; Poznaƒ; Rzeszów; Toruƒ; Kraków; Opole; Toruƒ; Kielce)

170 1995

None Arbis Capital Partners 100%

Jerzy Kobyliƒski

Full-service operational leasing; car fleet management including: registration, insurance, accident Skanska; Metro claims management, substitute cars, Properties; technical checkups and repairs, tire Piwowarska;Kompania Coca Cola replacement and storage, fuel HBC Polska; Alior Bank management, car sales, car fleet policy and user safety advisory, reporting

WND 2001

None LeasePlan Corporation 100%

S∏awomir Wontrucki

WND 1999

WND

67 2001

None BMW Osterreich Holding - 100%

Leszek Pomorski

Number of branch offices (locations)

Services offered

Selected clients

2012/ 2011/ 2010/ 2009

Masterlease Polska (Prime Car Management SA, Futura Leasing SA, Masterlease Sp. z o.o.) ul. Polanki 4, 80-308 Gdaƒsk 1 58 340-4400/58 340-4499 centrala@masterlease.pl www.masterlease.pl

22,739

WND WND WND WND

546.6 540.0 457.0 431.6

6,436 7,540 6,998 5,976

LeasePlan Fleet Management Polska Sp. z o.o. ul. Domaniewska 52, 02-672 Warsaw 2 22 335-1666/22 335-1661 info@leaseplan.pl www.leaseplan.pl

20,244

328.0 332.3 281.0 243.7

451.8 437.8 363.7 322.9

140 163 148 125

1 (Warsaw)

Arval Service Lease Polska Sp. z o.o. ul. Domaniewska 49, 02-672 Warsaw 3 22 454-5500/22 454-5510 arval@arval.pl www.arval.pl

16,056

WND WND WND WND

WND WND WND WND

WND WND WND WND

4 (Katowice; Kraków; Poznaƒ; Wroc∏aw)

Full-service leasing; short-term rentals; fleet management; financing and reporting; training of drivers; telematics services

Alphabet Polska Fleet Management Sp. z o.o. ul. Wo∏oska 22A, 02-675 Warsaw 4 22 820-5555/22 820-5560 kontakt@alphabet.pl www.alphabet.pl

11,226

WND WND 24.0 19.0

WND WND 24.0 19.0

WND WND WND WND

2 (Katowice; Warsaw)

Long-term leasing; full-service leasing; TP; PGNiG; Eiffage repairs and service; 24h assistance; Budownictwo Mitex; insurance; replacement cars; winter Deloitte Advisory; ING tires; fuel cards Bank Âlàski

Carefleet SA Pl. Orlàt Lwowskich 1, 53-605 Wroc∏aw 5 71 377-7634/71 377-7636 info@carefleet.com.pl www.carefleet.com.pl

8,712

WND 144.9 110.8 83.6

WND 144.9 110.8 83.6

WND WND WND WND

5 (Wroc∏aw; Warsaw; Katowice; Gdaƒsk; Poznaƒ)

Long-term lease of vehicles along with full technical service; financing and consulting for car fleet restructuring

WND

74 2004

Europejski Fundusz Leasingowy - 100% None

Frédéric Lustig

Athlon Car Lease Polska Sp. z o.o. ul. Bielaƒska 12, 00-085 Warsaw 6 22 279-4646/22 279-4600 info@athloncarlease.pl www.athloncarlease.pl

4,895

WND WND WND WND

70.6 43.6 24.5 13

1,271 978 WND WND

2 (Warsaw; Poznaƒ)

Long-term leasing

Bank BG˚; Perfetti van Melle; Fujifilm; UPS; Bacardi Martini

30 2007

None Athlon Beheer International - 100%

Eric van Vliet

Express Sp. z o.o., Sp.k. ul. RzemieÊlnicza 26, 30-403 Kraków 7 12 300-0300/12 300-0309 express@express.pl www.express.pl

3,961

103.9 92.4 72.5 WND

169.9 143.0 115.9 WND

WND WND WND WND

14 (Gdaƒsk; Katowice; Kraków; Lublin; ∏ódê; Poznaƒ; Szczecin; Warsaw; Wroc∏aw)

Long-term car leasing; mid-term car leasing; car fleet management

Eurovia Polska; Dragados; Cisco Systems Poland; Energia dla Firm; Still Polska

101 1989

Adam Pietkiewicz; Jacek Drogosz None

Hubert Laszczyk

Volkswagen Leasing Polska Sp. z o.o.

Rondo ONZ 1, 00-124 Warsaw 8 22 538-7000/22 538-7575 info@vwleasing.pl www.vwleasing.pl

2,654

WND WND WND WND

144.5 143.5 WND 163.8

11,524 7,579 6,227 6,850

WND

Leasing of cars by the Volkswagen Group (VW, Audi, Skoda, Seat, Porshe)

WND

WND 1997

None Volkswagen Financial Services - 100%

Joanna WujcikLasocka; Artur Zalewski

Nivette Fleet Management Sp. z o.o. ul. Lotnicza 3/5, 04-192 Warsaw 9 22 517-9300/22 717-9330 info@nfm.com.pl www.nfm.com.pl

2,570

WND WND WND WND

WND WND WND WND

225 WND WND WND

Carolina Fleet Management Sp. z o.o.

Al. Prymasa Tysiàclecia 54, 01-242 Warsaw 10 22 492-5678/22 492-5673 info@cfm.pl www.cfm.pl

1,142

WND WND WND WND

WND WND WND WND

WND WND WND WND

Notes: WND = Would Not Disclose. Research for The List was conducted in March 2013. Number of employees and ownership structure are as of March 2013. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

WND

President

Managing Director

Janusz Kowalik President

President

President

President

President

Board Members

Short-, mid-, and long-term leasing; 8 (Warsaw; Poznaƒ; car fleet management; leaseback; Wroc∏aw; Katowice; replacement cars; fuel cards; tire Kraków; Szczecin; Sopot; changing; 24h assitance; consulting; Bydgoszcz) reporting; used cars sale

WND

55 2002

WND

Marcin Nivette

Long-term car leasing; car purchase financing; insurance; maintanance; fuel cards; replacement cars; GPS monitoring; assistance; short-term leasing

WND

14 2001

WND

Maciej Olesiƒski

1 (Warsaw)

President

President

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 22 257-7500, or via e-mail to wbjbol@wbj.pl. Copyright 2013, 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.

20

MARKETS

www.wbj.pl

APRIL 2-7, 2013

Stocks report

world stock indices DJIA

NASDAQ

14,578.54 (Mar 28 close)

S&P500

3,267.52 (Mar 28 close)

1.09% (for the week)

FTSE100

1,569.19 (Mar 28 close)

1.39% (for the week)

DAX

6,411.74 (Mar 28 close)

1.51% (for the week)

0.36% (for the week)

Little change

NIKKEI 7,795.31 (Mar 28 close)

12,335.96 (Mar 28 close)

-1.73% (for the week)

-2.37% (for the week)

CHANGE: 8.69% (year to Mar 28)

CHANGE: 4.99% (year to Mar 28)

CHANGE: 7.30% (year to Mar 28)

CHANGE: 6.38% (year to Mar 28)

CHANGE: 0.21% (year to Mar 28)

CHANGE: 15.42% (year to Mar 28)

52-week high: 14,585.10

52-week high: 3,270.30

52-week high: 1,570.28

52-week high: 6,534.00

52-week high: 8,074.47

52-week high: 12,462.86

52-week low: 12,035.09

52-week low: 2,726.68

52-week low: 1,266.74

52-week low: 5,299.80

52-week low: 5,914.43

52-week low: 10,016.98

Andrew Nawrocki WBJ market analyst Cyprus continued to dominate headlines last week, with investors nervously reacting to any news from the small island nation-state. European equity markets retreated on Monday after a senior euro zone official stated that the Cyprus bailout could be used to shape other regional banking problems by shifting more risk to depositors. Poland’s WIG and WIG20 closed lower for the day, falling 1.07 percent and 1.29 percent, respectively.

Better-than-expected housing and manufacturing data from the US helped pull up equity markets on Tuesday, offsetting concerns about the Cyprus bailout. Polish equities saw a mini-rally late in the day, gaining back some losses from Monday. Poland’s bluechip index saw a 0.60 percent rise, while the broader WIG

Major indices WIG

45,147.57 (March 28 close)

WIG20

2,370.07 (March 28 close)

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

15.03

14.03

13.03

12.03

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

2,300

15.03

44,000

14.03

2,340

13.03

44,800

12.03

2,380

11.03

45,600

08.03

2,420

07.03

46,400

06.03

2,460

05.03

47,200

04.03

2,500

01.03

48,000

11.03

52-week low: 2,035.80

08.03

Change year to March 28: -9.75%

07.03

52-week low: 36,653.28

06.03

52-week high: 2,628.36

Change year to March 28: -6.15%

05.03

Change for the week: -1.07%

04.03

52-week high: 48,222.72

01.03

Change for the week: -0.95%

Top 5 IDEON PCCEXOL PELION YAWAL FARMACOL

Closing 0.09 5.31 55.20 6.70 47.70

% change (week) 52-week high 80.00 0.20 29.51 5.45 28.37 55.40 22.94 7.21 19.55 49.00

52-week low 0.04 1.29 23.01 3.90 19.50

Top 5 KERNEL PKOBP PGE ASSECOPOL PEKAO

Closing 59.10 34.55 16.74 42.00 157.00

% change (week) 8.44 1.02 0.30 0.00 0.00

52-week high 76.00 38.50 19.54 50.90 173.10

52-week low 51.00 28.93 15.11 38.80 123.29

Bottom 5 CALATRAVA INTAKUS POLJADLO ABMSOLID PBG

Closing 0.11 0.01 0.04 0.33 3.75

% change (week) -65.62 -50.00 -42.86 -42.11 -37.50

52-week low 0.11 0.01 0.03 0.10 3.03

Bottom 5 BORYSZEW PGNIG GTC TAURONPE BOGDANKA

Closing 0.44 5.53 7.65 4.28 119.40

% change (week) -8.33 -5.63 -5.09 -4.04 -3.71

52-week high 0.81 6.10 10.25 5.11 143.00

52-week low 0.42 3.63 5.13 3.84 114.00

52-week high 0.53 0.02 0.63 4.75 41.49

Currency report

A calm week

Other indices sWIG80

10,938.55 (March 28 close)

NewConnect

32.70 (March 28 close)

52-week high: 11,245.80

WIG-Banki

52-week high: 42.57

Change for the week: 0.18%

52-week high: 6,723.16

Change year to March 28: -1.57%

52-week low: 32.08

Change year to March 28: -5.27%

52-week low: 5,163.30

6,600

33.6

6,520

33.2

6,440

32.8

6,360

32.4

SOURCE: WSE

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

15.03

14.03

13.03

12.03

11.03

08.03

07.03

06.03

05.03

04.03

01.03

6,200

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

15.03

14.03

13.03

12.03

11.03

08.03

07.03

06.03

05.03

04.03

6,280 01.03

32.0

The last week of March did not bring any surprising events that could have moved markets. Cyprus will get funds from the IMF, but still the situation is hard for its citizens.

Macroeconomic data from the US was rather disappointing, but it has not helped the EUR/USD to recover. The main currency pair continued its downward movement, reaching a weekly low of $1.2750, its lowest since November of last year. If this week’s US labor market report shows another strong increase in employment, the EUR/USD will head toward even lower levels.

On the local market, it was a calm week. The lack of crucial macroeconomic data from the Polish economy had traders focusing on external factors, and those have not given the z∏oty

6,369.16 (March 28 close)

Change for the week: 0.28%

34.0

Adam Narczewski X-Trade Brokers DM SA

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

15.03

52-week low: 8,984.43

12.03

11.03

08.03

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

10,800 15.03

2,500

14.03

10,900

13.03

2,560

12.03

11,000

11.03

2,620

08.03

11,100

07.03

2,680

06.03

11,200

05.03

2,740

04.03

11,300

01.03

2,800

07.03

Change year to March 28: 3.87%

06.03

52-week low: 2,147.52

05.03

Change year to March 28: 2.19%

04.03

Change for the week: -1.18%

01.03

52-week high: 2,718.31

14.03

2,624.74 (March 28 close)

Change for the week: -0.41%

13.03

mWIG40

gained 0.31 percent. The largest gainers were PGE and GTC, gaining 2 percent and 2.2 percent, respectively.

Despite a disappointing Italian bond auction as well as bleak euro zone economic data, Polish equities saw impressive gains on Wednesday. Both the WIG and WIG20 gained more than 1 percent for the day, with shares of PKN Orlen leading the way with a 5.29 percent gain.

Shares reversed direction on Thursday. Despite gains throughout the old continent, Polish shares returned to normality, after posting unusually large gains the day before. The WIG fell by 0.22 percent, while the WIG20 saw a 0.64 percent slide.

On Friday, markets were closed as the Easter holiday drew near. ●

power to appreciate. Taking into account euro zone’s economic and political risks (Cyprus, Italy) it is hard to expect the local currency will regain value anytime soon.

On the other hand, only dramatic external events could harm the z∏oty in such a way that its depreciation could be a high risk for the economy.

This past week the PLN currency pairs rebounded and their downward larger corrective movements were denied.

The EUR/PLN advanced from z∏.4.16 to z∏.4.18 (a weekly high of z∏.4.19) while the more volatile USD/PLN climbed to z∏.3.25 from its weekly lows of z∏.3.20 (weekly highs at z∏.3.28).

As traders are back from Easter and important macroeconomic data will be published this week, volatility should be higher. ●

currency rates 3.4646 29.03

SOURCE: NBP

3.4878

3.4518 27.03

28.03

3.4432 26.03

3.3726

3.4275 3.3

22.03

0.1050 29.03

0.1055 28.03

0.1055 27.03

26.03

0.1050

0.1040 0.1047 25.03

22.03

3.4349

3.4323 29.03

0.10

PLN-100JPY

3.5

25.03

PLN-RUB

0.11

28.03

3.4304 27.03

3.4184 26.03

25.03

3.4257 22.03

4.9707

4.9528 29.03

3.3

3.4019

PLN-CHF

3.5

28.03

4.9355 27.03

4.9213 26.03

25.03

4.9224 22.03

3.2773

3.2590 29.03

4.8

4.8599

PLN-GBP

5.0

28.03

27.03

26.03

3.2427

3.1950 25.03

22.03

3.2361

4.1774 29.03

28.03

3.0

3.2635

PLN-USD

3.5

4.1866

4.1779 27.03

26.03

25.03

4.1586

4.1860 22.03

4.1

4.1723

PLN-EUR

4.2

SPORTS

APRIL 2-7, 2013

Soccer

www.wbj.pl

21

American football

Poland back to winning ways Warsaw Eagles beat Koz∏y Poznaƒ The Eagles kicked off the 2013 season with a 39-0 win

guessed the right way. But though he managed to get a firm hand on the ball, it still crept over the line to take Mr Lewandowski’s international tally to 17 goals in 53 appearances. ¸ukasz Teodorczyk and Jakub Kosecki completed the rout with goals in the 61st and 92nd minutes, respectively, to leave Poland in third place in World Cup qualifying Group H with eight points. Next up for the White Eagles is a friendly with Liechtenstein on June 4 in Kraków, before they face Group H strugglers Moldova away in Chisinau on June 7.

David Ingham

SHUTTERSTOCK

Poland defeated European minnows San Marino 5-0 in Warsaw last week. And while anything other than victory would have been a disaster for the White Eagles, the win still restored some much-needed pride following their 3-1 home defeat to Ukraine four days earlier.

The German Bundesliga’s leading scorer, Robert Lewandowski, was named captain for the night and his two penalty-kick goals, which ended

a nine-game international scoring drought, helped propel his side to a comfortable win over a team with only one win in their history. The Borussia Dortmund striker opened the scoring from the spot on 21 minutes. His Dortmund teammate ¸ukasz Piszczek doubled the advantage just seven minutes later after he reacted first to Adrian Mierzejewski’s low cross to fire the ball past San Marino keeper Aldo Simoncini.

After the break Mr Lewandowski once again scored from the penalty spot, although this time he was somewhat fortunate as Mr Simoncini

Robert Lewandowski (with ball)

The Warsaw Eagles started off the 2013 Topliga season with a bang, taking apart Koz∏y (Goats) Poznaƒ 39-0. Wide receiver Clarence Douglas Anderson scored three touchdowns for the Eagles, who have never lost to the Koz∏y in eight encounters.

Though the bright sun at kickoff could have been mistaken for a midsummer scene, the ring of snow piled up around the field and the chill in the air told otherwise, as temperatures plunged well below the freezing mark for one of the coldest PLFA regular season games in memory.

Following a Koz∏y turnover on the opening drive, Mr Anderson scored on Warsaw’s second offensive play, taking the ball in from the 27-yard line. The game settled down quickly after that score, and Warsaw began to wear down the Poznaƒ defense with a methodical running game that would eventually light up the scoreboard five times in the contest.

Warsaw led 20-0 at halftime on the strength of secondquarter touchdown runs by Mr

COURTESY OF MARCIN FIJA¸KOWSKI/WARSAW EAGLES

Robert Lewandowski scored twice in a 5-0 victory

The Eagles’ Dominik Koniusz runs with the ball in Warsaw’s 39-0 win over Poznaƒ.

Anderson and Piotr Osuchowski, who scored twice.

Koz∏y tried getting the offense going with two different quarterbacks, Patryk Barczak and Krzysztof Cymbrowski, but neither was able to crack a stout Warsaw defense.

Mr Osuchowski and Dawid Wi´ckowski both scored in the third quarter, and the Eagles wrapped up the scoring in the fourth when Shane Gimzo threw his first touchdown pass of the season, a 43-yarder to Mr Anderson.

In their Topliga debut the capital’s other team, the Warsaw Spartans, were given the unenviable task of playing

Poland’s defending champions, Seahawks Gdynia. The final scoreline of 48-0 in favor of the visiting Seahawks did not quite do justice to how well the Spartans played, but highlights that a lot of work needs to be done if this year is to be a successful one for the Spartans.

Elsewhere, the Wroc∏aw Giants beat the AZS Silesia Rebels 61-0, with running back Jamal Schulters scoring four touchdowns. The weekend’s other game,Wroclaw Devils vs Zag∏´bia Steelers, was called off with the field unplayable due to the wintry conditions.

Alex Zarganis

22

LIFESTYLE

www.wbj.pl

APRIL 2-7, 2013

Exhibition

Concert

China in your hand

Another world

Dancing beauty with swallow, Mianzhu, 1930-1932

is the largest of its kind in Poland and offers a fascinating opportunity to gain insight into the past lives of the elite in China’s society, as well as the country’s beliefs, symbols and customs.

The museum’s collection of oriental art was partially destroyed during World War II, but has been largely rebuilt thanks to donations from private collections. The first important post-war donation was in 1951, a bequest of the acclaimed pianist and politician Ignacy Jan Paderewski, who accumulated a wide collection of Chinese art and artifacts during his life. In 1962, a group of several hundred woodcuts and rubbings, collected by Sinology professor Witold Jab∏oƒski, were also donated by his widow. Some of the most valuable pieces come from the collection of activist in exile Roman Kuty∏owski, who purchased them during his time spent living in New York during the inter-war period.

Most of the exhibits are from the Ming (1368-1644) and Qing (1644-1911) dynasties, with some pieces also dating from the beginning of the 20th century.

David Ingham

A Hawk and a Hacksaw

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This recently opened exhibition presents the most interesting exhibits from the National Museum’s oriental art collection. The collection, which contains over 5,000 pieces, including sculptures, paintings, calligraphy, furniture and ceramics,

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Beyond the Great Wall.

Chinese art from the collection of MNW Ongoing until May 12 National Museum Al. Jerozolimskie 3 Warsaw

A Hawk and a Hacksaw April 14 Pardon To Tu Pl. Grzybowski 12 / 16 Warsaw A Hawk and a Hacksaw, a duo hailing from Albuquerque, New Mexico, will visit Poland once again in mid-April. The band, which consists of Jeremy Bates on accordion/vocals and Heather Trost on violin, produce mainly instrumental music that’s influenced by Eastern European, Balkan and Turkish traditional folk sounds.

Their name name is a reference to the line from “Don

Quixote.” The original quote was changed from “Handsaw” to “Hacksaw” and is a reference to the Aksak meter that is prevalent in Balkan and Turkish music.

Their self-titled debut album, which was released in 2002, first brought them to wider attention when it was used as the soundtrack for the documentary “Zizek!” The duo’s sixth studio album “You have Already Gone to the Other World” was released on April 2.

Lauded by traditional music fans as well as newcom-

ers to the genre, Michael Gira, lead singer of fellow US band Swans, said of the band recently that, “their instruments and their voices are ecstatic swords, swooping with blithe abandon through the soft flesh of the world, killing and then discarding the ordinary and the mundane with an unbridled commitment to joy and mesmeric, gleeful self-immolation.”

Tickets for the event are priced from z∏.25.

David Ingham

For more information log on to pardontotu.blogspot.com

LAST WORD

APRIL 2-7, 2013

www.wbj.pl

23

Tech Eye

Gadgets to add some more slice to your par holes

The 3BaysGSA Putt Wait ... Is it golf season? Of course it is. Right?

Argh, our dark secret is revealed at last: Techeye is a golf neophyte.

Shocking, isn’t it? With our noble mien, patrician heart and widely envied collection of world leaders’ used handkerchiefs (the crusties of the upper crust, if you will), everyone

And one last thing – you can turn off the annoying voice. But why should you?

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just assumes we’re an avid golfer.

Alas, it’s not true. We know a wedge from a wedgie, but that’s it.

So we’re not sure if it’s golf season or not, but no matter. We’re looking at golf gadgets this week and that’s that. They’ll eventually be relevant, at least for golfers that suck enough to need gadgets. Like Techeye.

First up is the 3BaysGSA Putt from Hong Kong-based golf gurus 3Bays (3bayslife.com). The pointy gizmo snugly plugs into the butt end of a putter and measures everything about your swing that you could want it to measure, including attack angle, tempo, down- and back-swing times and impact speed. All of this data is viewable via an iPhone app that also lets you analyze performance and consistency. You can also zoom in, compare swing arcs and do other nerdy golf stuff.

Worry not, at just 9.8g the 3BaysGSA Putt shouldn’t handicap your putt (though maybe a handicapped putt is a good thing, who knows). And if you already own a set of golf clubs, the device’s $199.99 price tag probably won’t affect your wallet (the app is free). Do yourself a favor, though, and don’t watch the ultra-awkward golf-pro testimonial

The GolfBuddy Voice videos 3Bays has on its site. They might affect your sense of emotional well-being.

Then there’s the GolfBuddy Voice, a subscription-free GPS device that figures out which course you’re playing and alerts you, in a kind of annoying voice, how far you are from the next hole (Golfbuddyglobal.com). It has a capacious-sounding 40,000course capacity, too.

But wait, there’s more. The GolfBuddy Voice has five buttons! A mono LCD screen! It clips on hats!

And only weighs 28g!

You get all that for just $149.99.

Irritating opponents to distraction is a great tactic, one that Techeye employs on a daily basis.

But we digress. Let’s turn now to the SensoGlove (Sensoglove.com), a newfangled golf glove that’s designed, quite obviously, to senso. In broader terms, it is “the first and only golf glove with a built-in computer that constantly reads your grip pressure.”

That’s important, because it helps avoid “death grip,” a sinister technique that is much admired among Shaolin monks but is bad for golfers.

So the SensoGlove keeps track of your grip and helps you develop “increased club head awareness.”

How grand.

The SensoGlove costs $89 and replacement gloves can be had for $22.48. Why you’d need replacement gloves is unclear, though we speculate that it has something to do with sensooverload.

Anyway, with gadgets like these, Techeye’s days of shame may be over.

We’ll keep our much-whacked balls on the fairway and maybe we’ll even get some new high scores. Fifty over par, here we come! ●

The SensoGlove

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COURTESY OF 3BAYS

Yay, it’s golf season. Time to slip into argyle socks, snazzy plaid shorts and a pastel sweater vest. Time to sip umbrella drinks with our pals, Muffy, Buddy, Aggie and Skip. Time to hit the links and smack around more balls than a crazed urologist wielding a reflex hammer.

Ever suffered the attentions of a crazed urologist? 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.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

Wilanów Palace Pracownia Galeria ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.wilanow-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

To advertise in WBJ’s classifieds section, contact Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl

Ingredients of culinary excellence We invite you to taste the delicious dishes of modern Polish cuisine with a distinct touch of the most sophisticated culinary trends.

Pałac Sobańskich, Al. Ujazdowskie 13, 00-567 Warsaw Booking: (+ 48) 22 523 66 64 www.amberroom.pl

Michelin Guide Recommendation