WBJ #25-26 2012

Opinion: Poland’s Euro 2012 victory

The head of the National Security Bureau talks NATO, Afghanistan and missile defense 8-9

WWW.WBJ.PL

Interview: Gen. Stanis∏aw Koziej

VOLUME 18, NUMBER 25-26 • JUNE 25 – JULY 8, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Dream vacation

REAL ESTATE

COURTESY IF MVRDV

WBJ suggests five beautiful Polish destinations for soccer fans to come back and visit

• Ba∏tyk Tower • Kraków offices • Luxury residences

12-13 COURTESY OF PIOTR DRABIK / WIKIMEDIA COMMONS

Endless Lato

The head of Poland’s soccer association backtracks on stepping down 5

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-5 Business . . . . . . . . . . . . . . . . . . . .6-7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Finance & Economics . . . . . . . . . .10 Tourism in Focus . . . . . . . . . . . . . .11 Cover story . . . . . . . . . . . . . . . .12-13 Opinion & Analysis . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Death of a general

Goodbye, Exxon

The death of the founder of an elite Polish military unit appears to be a suicide. Some politicians aren’t so sure

ExxonMobil is exiting Poland’s shale gas sector. But plenty of other companies still have high hopes 5

NEWS

www.wbj.pl

Weeklies’ sales increase Total sales of 11 prominent Polish sociopolitical weeklies increased by 4.2% y/y to 1.02 million copies in April, reported Rzeczpospolita, citing data from industry body Zwiàzek Kontroli Dystrybucji Prasy. Compared to the same period of last year, Newsweek Polska saw the largest surge in readership, selling 152,700 copies, a yearly increase of about 44%. ●

30% of companies recorded 5% net turnover profitability in Q1. The average was 4.1%.

12.4 billion kg is how much milk will be produced in Poland this year, according to the Institute of Agricultural and Food Economics

4.6% was the increase in industrial production in Poland in May, significantly higher than anticipated.

“The euro is here to stay and we all mean it.” Italian Prime Minister Mario Monti, after a meeting with the leaders of Germany, France and Spain, saying how determined they were to keep the euro zone intact.

Figures in focus Saints and sinners Share of renewable energy in % of gross final energy consumption, selected EU countries, 2010 50 40 **Highest in EU27 *Lowest in EU27

30 20 10

On WBJ.pl

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Remi Adekoya

Quote of the Week

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“Markets need to know that the euro is here to stay, and we all mean it,” Italian Prime Minister Mario Monti said after the meeting. In a Prague summit which started on June 22, Prime Minister Donald Tusk met with the leaders of Slovakia, Hungary and the Czech Republic under the auspices of the Visegrad Group to work out a common stance for the countries during the June summit. They sent a letter to the heads of the European Commission, the European Parliament and the European Council saying they fully support actions to promote “economic growth, employment and the competitive edge of EU economies.”

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channeled directly from the euro zone’s rescue fund into the coffers of the country’s lenders, rather than through the government. At a pre-summit meeting in Rome between the leaders of Germany, France, Italy and Spain, a decision was made to sign off on a €130 billion package aimed at generating growth in Europe’s beleaguered economies. The agreement was pushed by Italy, France and Spain, whose leaders have been trying for the past few months to convince German Chancellor Angela Merkel that along with the austerity measures countries are being required to implement, a concerted EU plan is needed to boost growth in the continent.

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After a disappointing G20 conference in mid-June, EU leaders were set to meet on June 28-29 for yet another “last chance” summit. With the Greek political ship now sailing in calmer waters, the attention has once again shifted to Spain, while some also mention Italy as another disaster in the making that could lead to a collapse of the euro zone. The lukewarm market reaction to the euro zone’s promise to pump as much as €100 billion into Spanish banks served to increase anxiety in mid-June, with the country’s bond yields approaching dangerous territory. Spanish Prime Minister Mariano Rajoy subsequently started pressing EU decision makers to allow money to be

As WBJ went to press, from the beginning of Euro 2012 Polish courts had examined a total of 157 incidents of alleged lawbreaking, involving 215 fans, 34 of whom were foreigners, according to the Justice Ministry. The majority of cases were handled by courts in Warsaw and 124 people had been found guilty and sentenced. The Justice Ministry said 181 of those involved in the cases were Polish citizens.

was the total value of foreign investments in Poland in 2011.

Lat

Euro 2012 sees 157 crimes

€10.3 billion

The number of Polish families facing extreme poverty grew for the first time in six years in 2011, reported Dziennik Gazeta Prawna. Some 2.6 million Poles, or 6.7% of the country’s population, were living in extreme poverty last year, a rise of one percentage point on 2010. “This is partly the effect of low wage growth observed for at least two years and high and growing unemployment,” said Waldemar Urbaniak, a sociology professor at the Szczecin School of Humanities.

Europe’s future

Poverty on the rise

Numbers in the News

Sw ed

Although their team didn’t make it past the group stages of Euro 2012, Poles are still happy about the event and the fact that their country is co-hosting the tournament with Ukraine. Some 87% of respondents polled by Homo Homini in mid-June said co-organizing the tournament with Ukraine was an excellent idea.

IN THE SPOTLIGHT

Source: Eurostat

Company index COURTESY OF WIKIMEDIA COMMONS

Poles happy with co-hosting Euro 2012

JUNE 25 – JULY 8, 2012

COURTESY OF FLIKR / THE EUROPEAN COMMIS-

Delights of the east A Renaissance pearl nestled in the east of Poland, ZamoÊç is often overlooked by tourists. With its colorful burgher houses and pristine red-brick bastions, the town is featured on the UNESCO World Heritage List. WBJ’s sister publication, Warsaw Insider, takes you for a weekend trip to this truly unique place.

DATELINE

RENDEZ-VOUS WITH FRANCE

Web:

A new way of celebrating July 14. On that day supporters of France, inhabitants of the capital and tourists will come to Saska K´pa. It should be a great opportunity to promote the French presence in Poland and to strengthen the image of French companies Saska K´pa ccifp.pl

NAC VII SUPERFINAŁ

Event:

The championship of the top league of Poland’s American football association, known as the NAC 7th Superfinal, will pit the country’s two best teams from this up-andcoming sport against each other – and in the National Stadium in Warsaw no less. There

Event:

Location:

Hyundai-Kia Group ..................................7

3Legs Resources......................................5

ING Bank ............................................7, 10

Akron Group ..........................................15 Akron Investment CEE II........................15 AXA..........................................................15

Location: Web:

will be several activities during the day leading up to the final, and is set to be a family friendly affair, with plenty for the kids to do. National Stadium, Warsaw superfinal.pl

AUGUST 10-14 ARABIAN HORSE DAYS Event:

Location: Web:

Arabian Horse Days are an annual event dedicated to Polish Purebred Arabian Horses organized by the Polish State Studs in Janów Podlaski, Micha∏ów and Bia∏ka to honour the Polish Arabian Horse breeding program. Janów Podlaski prideofpoland.pl

ING Bank Âlàski ......................................7 Jones Lang LaSalle..........................15, 17

Banco Santander ....................................7

Lion’s House ..........................................16

Bank of America ......................................7

Louvre Hotels Group ..............................15

BBI Development NFI ............................15

McDonald’s ..............................................7

BG˚ ..........................................................7

Morgan Stanley ........................................7

Blizzard Entertainment..........................23

MVRDV ....................................................15

BNP Paribas ............................................7 Boeing ......................................................7

July/August JULY 14

3J ..............................................................7

Nordea Bank ..........................................10

BZ WBK ..............................................7, 10

Orco Property Group ..............................16

Capgemini ..............................................10

OTIS ........................................................15

Carrier ....................................................15

PGNiG ..................................................5, 7

Chevron ....................................................5 Citigroup ..................................................7 Coca-Cola ................................................7 Colliers International ............................17

PZL Mielec................................................7 Rabobank..................................................7 RBC Wealth Management ....................10

Credit Agricole SA ....................................7

RWE ..........................................................7

Credit Suisse ............................................7

RynekPierwotny.com..............................16

Danske Bank ............................................7

Sharp ........................................................7

Deutsche Bank ........................................7

Sikorsky Aircraft ......................................7

DI BRE ......................................................6 E.ON..........................................................7

Sophia ....................................................15

Eizo ........................................................23

Synthos ....................................................6

Ernst & Young ........................................10

Tacit Development Polska ....................16

ExxonMobil ..............................................5

TVP............................................................7

Garvest....................................................15

Ultra Architects ......................................15

Gazprom ..................................................7 GE-Hitachi ................................................7 Google ......................................................6

Vox Group................................................15 Westinghouse Electric Company ............7

Grupa ˚ywiec............................................7

X-Trade Brokers ....................................20

HB Reavis ..............................................15

ZA Pu∏awy ................................................6

NEWS

www.wbj.pl

PO gains support on Euro 2012 Euro 2012 seems to be boosting support for the ruling Civic Platform (PO) party. In a survey conducted by pollster CBOS between June 1420, 32% of the 1,013 individuals polled said they supported PO, a 5 percentage point increase on a month earlier. “The success of the organization of Euro 2012 apparently contributed to the improvement,” noted CBOS. Meanwhile 20% said they would vote for main opposition party Law and Justice and 9% for the Democratic Left Alliance.

Shakira records in Gdaƒsk While supporting her boyfriend, Spanish footballer Gerard Pique, Colombian superstar Shakira worked on recording songs in Gdaƒsk, AFP reported. The singer recorded the tracks from June 13 to 20 at the Radio Gdaƒsk recording studio, Radio Gdaƒsk president Lech Parell told AFP. ●

JUNE 25 – JULY 8, 2012

Euro 2012 fans

The military

Poles mourn Irish soccer fan’s death

Founder of special forces unit discovered dead

Hundreds of locals paid their respects at the river where the body of 21-year-old student James Nolan was discovered The body of 21-year-old Irish student James Nolan was found in a river that runs through Bydgoszcz in midJune. The discovery followed an intensive three-day search by police and local emergency services. Mr Nolan, who was from Blessington in County Wicklow, had come to Poland with a group of friends for the Euro 2012 championships. Traveling in a camper van from Gdaƒsk to Poznaƒ, they had stopped off in Bydgoszcz where they went out to the pub to watch the Italy-Ireland match. The student, who later became separated from his friends, was last seen in the city center in the early hours of Sunday, June 17. As WBJ went to press, an investigation into his death

was underway, with six of Mr Nolan’s friends having visited a local police station to give statements, DNA samples and review CCTV footage. An autopsy of the body suggested that Mr Nolan had drowned in an apparent accident. “There is no other hypothesis than an accident,” prosecutor W∏odzimierz Marsza∏kowski told the Associated Press. “There are no doubts, no circumstances to suggest otherwise.” The tragedy touched the people of Bydgoszcz, hundreds of whom gathered along the river where Mr Nolan died to pay their respects. Irish Deputy Prime Minister Eamon Gilmore also thanked the Polish authorities and emergency services and the people of Bydgoszcz for their efforts in finding the young student. “The solidarity and support we have received since James was reported missing, has been extraordinary and I am deeply grateful.” Gareth Price

Initial indications suggest suicide was the cause of death, but others say sinister forces could have been behind Gen. Petelicki’s passing Retired Brigadier General S∏awomir Petelicki, the founder of the Polish special forces unit GROM, was found dead in mid-June from a gunshot wound to the head. The body of the 65-year-old general was discovered by his wife in a garage within the apartment building where they lived. A gun, but no suicide note, was found at the site. The Prosecutor’s Office in Warsaw told the Polish Press Agency that the results of an initial autopsy suggest the death did not involve “the participation of a third party.” No other injuries were found on Mr Petelicki’s body and security cameras did not record the presence of anyone else in the garage at the time of his death, indicating that Mr Petelicki had in fact killed himself. Some politicians and com-

mentators believe, however, that General Petelicki – who had criticized the government and spoken out against corruption in the military – may have been murdered. “A few weeks before the event, a person – commonly known – [put] Petelicki on a shortlist of people who speak a lot and are therefore at risk,” Jaros∏aw Kaczyƒski, leader of Poland’s main opposition party, Law and Justice, told journalists. “He was listed among the endangered and

the already dead,” he added. Former Defense Minister Romuald Szeremietiew, believing he might be in danger, sent a statement to the media clarifying that he was not considering suicide. Mr Szeremietiew said that the news of Mr Petelicki’s death had forced him to speak. “I am healthy, I have no problems of a personal or financial nature and I do not intend to commit suicide,” the statement reads, according to GP news portal TVN24.

EAST NEWS

Gen. Petelicki founded GROM in 1990

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NEWS

JUNE 25 – JULY 8, 2012

www.wbj.pl

Shale gas

ExxonMobil pulls out of Poland Despite being the first big company to abandon its search for shale gas in the country, ExxonMobil’s decision does not appear to have worried other players

and plans. The decision of one company should not be seen as an indicator for the view of the whole industry in Poland, especially since [ExxonMobil’s] concessions are situated only in

Affairs, noted that although ExxonMobil is a major global oil and gas producer, the firm has fairly limited experience with unconventional deposits of hydrocarbons, and shale gas

Eastern Poland and they only drilled two vertical wells,” said Kasia Terej, a spokesperson for 3Legs Resources. “Unlike ExxonMobil, which drilled two wells and came up empty, other firms have made greater headway in exploration, and in many cases, found encouraging signs. If every company pulled up their stakes after two poor wells, there wouldn’t be an energy business,” said Peter B. Doran, senior policy analyst at the Center for European Policy Analysis. “On its own, ExxonMobil’s decision is unlikely to push other companies to the exits.” Also playing down the significance of the news, Bartosz WiÊniewski, analyst at the Polish Institute of International

is not an important pillar in its activities. “In order to decide whether a given field is commercially viable, the best North American companies need tens of wells, and at least five years,” he said. “ExxonMobil seems to have come to a conclusion that smaller operators that are more experienced with shale gas have the necessary know how to [make such decisions]. So this is not a make-or-break moment for Polish shale gas,” he said.

The Russia factor Comments from Deputy Prime Minister Waldemar Pawlak to the effect that ExxonMobil’s decision was linked to its developing business in Russia also

Soccer

COURTESY OF 3LEGS RESOURCES

“If every company pulled up their stakes after two poor wells, there wouldn’t be an energy business.”

When the news that ExxonMobil had decided to end shale gas prospecting in Poland broke in mid-June, it led to a wave of speculation in local and international media regarding the future of the shale gas industry in the country. The firm cited lack of sustained commercial gas flow at two wells in eastern Poland. But neither major players nor experts contacted by WBJ seemed to think ExxonMobil’s move represented a significant setback for the industry. Chevron, 3Legs Resources and PGNiG, which together hold over a third of the 110 prospecting concessions issued so far by Poland’s Environment Ministry, all confirmed that their plans were unchanged. “Each company makes independent decisions based on the assessment of achieved results and its own objectives

Exxon’s decision is not an indicator for the whole industry, says 3Legs Resources fueled the media machine. “[ExxonMobil] is developing its business in Russia and it would be strange if it stretched so much to engage in shale gas effort here [in Poland],” Mr Pawlak told reporters after the decision was announced. On June 15, ExxonMobil announced that it had signed a long-term agreement with Russia’s Rosneft to develop tight oil reserves in western Siberia. But Adam KopyÊç, public and government affairs advisor

for ExxonMobil in Poland, said that “the agreement between ExxonMobil and Rosneft has no impact on our operations in Poland.” Without necessarily conflicting with projects in Poland on other matters than the allocation of capital and resources, the joint venture entails longterm cooperation and massive investments, explained ¸ukasz Cioch, head of the Centre for Energy Studies at the Tischner European University. “We are

talking about a contract stretching across three decades, possibly a milestone in collaborative exploration and investment risk-sharing between the US and Russia. To see it as a business priority for ExxonMobil seems hardly exaggerated,” he said. The next step for ExxonMobil, meanwhile, will be to decide on the future of their six concessions in Poland. No decision had been made as WBJ went to press. Alice Trudelle

US visas

Lato refuses to step down US congressman speaks out

The president of the Polish Football Association (PZPN), Grzegorz Lato has said he will not resign and may even stand for reelection when members meet to chose their next president in October. The announcement comes despite the fact the former Polish international previously said he would relinquish his position if Poland failed to make it out of the groups stages during Euro 2012. As Poland finished at the bottom of Group A, many expected Mr Lato to honor his promise. But he now says he sees no reason to resign. “I will announce by July 5 if I will be a candidate. Many of you will like my decision, many will not,” he said. Mr Lato added that he felt PZPN had done everything it could to ensure Poland had the best chance of being successful at Euro 2012. “We as the federation did everything in our power so

against expanding visa program Could eliminating US visas for Poles pose a terrorist threat? COURTESY OF PIOTR DRABIK / WIKIMEDIA COMMONS

Poland’s soccer association president previously said he would leave his post if Poland failed to qualify for the Euro 2012 knockout stages

Mr Lato said he sees no reason to resign that the national team could prepare well for the tournament,” he said. “None of our national teams in the past have enjoyed the fantastic conditions that we arranged for them. I see no reason to resign because Poland was knocked out,” Mr Lato added. Mr Lato has come in for sustained criticism in recent years for alleged corruption within the organization and a perceived lack of accountability or modernization. Poland’s captain and star player Jakub B∏aszczykowski also leveled criticism at the organization for failing to provide the players with an ade-

quate amount of free tickets for their families, something he suggested took their minds off preparations before their Euro 2012 matches. Poland’s Minister of Sport and Tourism Joanna Mucha has also said a change needs to be made within PZPN, but that she does not have the power to facilitate it. “Of course we all know that the Polish Football Association is not well managed. However, the minister of sport’s [powers in this area] are very limited and we can only appeal to the chairman to keep his word,” she told broadcaster TVP. David Ingham

US Republican Congressman Lamar Smith believes expanding the US’s Visa Waiver Program (VWP) to include Poland would lead to an increased risk of terrorists reaching American shores. In a letter to the editor of US political newspaper Roll Call, Representative Smith, the chairman of the US House of Representatives’ Judiciary committee, said that the VWP is a “loophole for entry by those who may wish to do us harm.” “We know that terrorists have used the VWP to their benefit. Sept. 11 conspirator Zacarias Moussaoui, ‘shoebomber’ Richard Reid and 1993 World Trade Center conspirator Ahmed Ajaj all entered or attempted to enter the U.S. through this program,” he added. Rep. Smith also said that the US Government Accountability Office had issued a report finding that half of the countries currently in the Visa Waiver Program have not met

security requirements mandated by the US Congress. Rep. Smith was responding to an opinion piece published in Roll Call, a version of which also appeared in the June 18 edition of WBJ. In it, Tad Taube, honorary consul for the Republic of Poland in the San Francisco Bay Area, wrote in favor of opening up the VWP to Poles. In his response to Mr Taube’s piece, Mr Smith never pointed to Poland as a specific danger, but instead spoke against the expansion of the VWP in general as a threat to US security. That Poles are still required to obtain visas in order to enter the US is a sore spot in diplomatic relations between the two countries. Despite being one of the most proAmerican countries in Europe – participating militarily in both the Iraq and Afghanistan wars, as well as agreeing to host elements of the US missile shield – Poland remains one of only four EU countries outside the VWP (the others are Bulgaria, Cyprus and Romania). When reached for comment by WBJ, Mr Taube

emphasized that he felt Rep. Smith’s opinion was not “driven against Poland,” but also pointed out that Rep. Smith was “a pivotal person in this process” of getting Poland into the program, in his position as chairman of the judiciary committee. Specifically regarding any threat to US security that would come with expanding the VWP to include Poland, Mr Taube said, “That’s not an issue with Poland. In fact, it’s much more of an issue with the Western European countries already part of the program,” referring to the absence of Muslim extremism in Poland. Poland’s eastern border is at the edge of the European Union, and Polish border guards oversee entry into the EU’s border-free Schengen Area. The headquarters of the EU’s border security agency, Frontex, is located in Warsaw. Both Poland’s Foreign Ministry and Congressman Lamar Smith’s office were contacted with requests for comment on this story. Neither replied before press time. Andrew Kureth

BUSINESS

www.wbj.pl

Chemicals sector

JUNE 25 – JULY 8, 2012

Censorship

Synthos makes z∏.1.96 bln Government agency asks Google to remove links offer for ZA Pu∏awy The agency requested that the search engine operator remove links to sites critical of it, but Google refused

Polish synthetic rubber producer Synthos made an offer in mid-June of z∏.1.96 billion for a 100 percent stake in Polish fertilizer maker Zak∏ady Azotowe Pu∏awy, marking the second major bid for a Polish state-controlled chemical firm in as many months. Synthos has offered z∏.102.5 per share in the first 12 days of the bid starting on July 9, after which the offer falls to z∏.98.77. The Treasury, which controls 51 percent of Pu∏awy, has said it would examine the bid. “Because [Pu∏awy] is listed, the sale of shares by the Treasury Ministry can also take place by answering a tender,” it said in a statement. The Treasury hopes to raise z∏.15 billion from privatizations before the end of 2013, with chemical groups comprising some of the largest assets up for sale. Economy Minister Waldemar Pawlak called Synthos’ bid “a very interesting proposition.” Some analysts say that the price offered is attractive, since the company’s mediumterm outlook depends on grain prices, which are forecast

Google has released information regarding requests that governments around the world made between July and December 2011 to remove blog posts or videos. In Google’s transparency report, the Polish Agency for Enterprise Development (PARP) was named as one such governmental institution that requested the removal of content. “We noticed that government agencies from different countries would sometimes ask us to remove political content that our users had posted on our services. We hoped this was an aberration. But now we know it’s not,” Google’s wrote on its official blog.

COURTESY OF SYNTHOS

Tycoon Micha∏ So∏owow is eying the creation of Poland’s largest chemicals group

The tie-up would create Poland’s largest chemical firm to fall and therefore reduce farms’ funds for spending on fertilizer. “We have a negative outlook on this issue, since the supply of corn and wheat will be higher in the upcoming harvest, which will put pressure on prices,” said Kamil Kliszcz, an analyst at brokerage DI BRE. Margins on chemical product caprolactam are also expected to fall due to slowing demand in China, which is one of Pu∏awy’s main markets. “This gives a negative view on fertilizer companies. … In this scenario, there is now a chance for [Pu∏awy] shareholders to realize profits,” he added. Tycoon Micha∏ So∏owow, Synthos’ majority shareholder,

told Rzeczpospolita that in his opinion the price is reasonable since the company needs restructuring. “We are interested in taking over Pu∏awy, but not at any price,” he said. If the deal goes through it will lead to the creation of Poland’s largest chemical group, and one of the largest in Europe. The bid for Pu∏awy comes shortly after Russia-based Acron’s z∏.1.5 billion offer for Polish chemicals firm Azoty Tarnów, which the Treasury opposes on the grounds that it could harm the company’s strategy and reduce the value of other Polish state-controlled chemical companies. Gareth Price

Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl

Energy labeling for products On June 12, the Polish government adopted draft legislation concerning the obligation for producers to provide customers with information about products that consume energy. Most energy-consuming products will have to be labeled, whereas now the obligation applies only to household appliances. New products to be labeled will include TV sets. Energy labeling includes information on the energy efficiency class and basic information about a product, including the amount of energy it consumes and the level of noise it emits. The draft legislation imposes on suppliers of energyconsuming products the obligation to label such products and to enclose a product data sheet in Polish. The legislation prohibits the introduction to the market of products which have not been labeled, which are not accompanied with a product data sheet and for which technical documentation has not been made available. Moreover, it stipu-

lates the requirements for advertising an energy-producing product. If an advertisement shows a product’s price or level of energy consumption, it also has to inform viewers about the product’s energy efficiency class. Depending on the type of provision breached, fines will range from five times to 20 times the average monthly salary (currently about z∏.3,700).

Shareholder registration may require share-sale agreement Pursuant to a recent resolution of the Supreme Court (June 6, 2012, court ref. no. III CZP 22/12), in proceedings for entering the data of limited liability company shareholders into the National Court Register, the court of registration may request to see the relevant share-sale agreement. This concerns shareholders holding solely, or jointly with other shareholders, at least 10 percent of the firm’s initial capital. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

“We received a request from the Polish Agency for Enterprise Development to remove a search result that criticized the agency as well as eight more that linked to it. We did not comply with this request,” the blog post continued. PARP’s request concerned links on the website Bioinfo.pl to articles critical of the agency. When asked about its request, PARP spokesperson Mi∏osz Marczuk told WBJ that the agency felt that links to critical articles on Bioinfo.pl appeared on Google searches more often than should have been the case. He added that PARP did not want the critical articles to be removed. “The intention of PARP’s activity in the whole matter was not to close any web pages, but only to draw attention to improper positioning of search results,” Mr Maczuk said.

“PARP has its own page on Facebook and online forums where readers can enter any comments about our activities. We are an institution open to criticism. … We have no reason to be afraid of criticism, nor to seek to shut down web pages that contain critical remarks about us,” he added. In total, only two requests were made by Polish government agencies, the second of which was a YouTube video that was said to cause religious offense. Neither of these requests were accepted by Google. “Just like every other time before, we’ve been asked to take down political speech. … It’s alarming not only because free expression is at risk, but because some of these requests come from countries you might not suspect – Western democracies not typically associated with censorDI ship,” Google wrote.

City tourism

Warsaw aims to become a Central European hub The capital is pushing to streamline its promotional efforts by grouping together public and private partners to work towards a common strategy Hoping to make the Polish capital the “first choice in Central Europe” for tourists, 17 of Warsaw’s public and private tourism-focused institutions have launched the Warsaw Tourism Organization (WOT). WOT, whose members include Warsaw’s City Council, the board of the Palace of Culture and Science, several museums, the Warsaw metro and the city’s main international hotel chains, plans to create the capital’s first integrated tourist offer, under the brand “One Warsaw.” “I strongly believe that the concept of ‘One Warsaw’ will help us connect and attract other institutions to become members of the WOT. This will be for the benefit of Warsaw and all parties who care for Warsaw’s image and the city’s business tourism development” WOT president Katarzyna Ratajczyk said in a statement.

Conference city Taking inspiration from cities

such as Berlin, London and Vienna, which all have similar platforms in place, WOT is actively looking to recruit more members. One target in particular is the city’s new National Stadium, whose participation could help Warsaw attract more international conferences and congresses, the organization said. “Warsaw deserves to be the leader from this part of Europe in bidding for conferences and congresses. We can make this happen,” said Alex Kloszewski, president of the Warsaw Destination Alliance (WDA), which groups together several international hotel brands such as the Hyatt Regency Warsaw and the InterContinental Warszawa. The group also intends to generate funds to boost inter-

national marketing efforts, including from the introduction of a 1 percent occupancy levy for hotel guests. Common in the United States, so-called “bed taxes” are gaining in popularity in Europe as well, with Berlin planning to introduce a 5 percent tax on all hotel bills in January 2013. Kraków introduced a similar tax in 2004, which amounts to z∏.1.60 per person per day regardless of the cost of accommodation. “We believe that realistically the tax could be launched in 2013. We are currently leading a number of discussions with the Ministry of Sports and Tourism, [Polish Tourist Organization] POT and the city authorities to reach that target,” said Mr Kloszewski. Anthony Adams

Here for business Main purpose of visit as a percentage of total inbound tourism to Poland, 2011 Business 14 26 11

Leisure VFR* Transit

7 23

Shopping

19 Other purposes * Visiting friends and / or relatives Source: Polish Institute of Tourism

BUSINESS

JUNE 25 – JULY 8, 2012

www.wbj.pl

US-Polish business summit

Agreements signed between Polish and American firms

Top US and Polish businesspeople and political leaders vowed to increase ties between the two countries at a summit held in Warsaw in June. The summit witnessed the signing of a $350 million dollar contract between Sikorsky Aircraft and Polish aircraft manufacturer PZL Mielec for the production of parts for the Black Hawk helicopter. The Sikorsky Aircraft-PZL Mielec contract, which will span five years and is dependent on Sikorsky Aircraft orders, was the biggest agreement inked on the day. Polish Deputy PM and Economy Minister Waldemar Pawlak and Acting US Commerce Secretary Rebecca Blank were there for the signing. Ms Blank said in her speech that US-Poland ties had “never been stronger.” From the years 2003 to 2011, Polish exports to the US tripled

PIOTR GAMDZYK/WBJ

The deals were accompanied by a political commitment to increase business ties between the US and Poland

Deputy Prime Minister Waldemar Pawlak said there had been “huge progress” in bilateral ties to $3.7 billion. Imports, meanwhile, increased from $1.8 billion to $4.8 billion, conference organizers said in a report issued at the conference. However, despite acknowledging there had been “huge progress” in bilateral ties, Deputy Prime Minister Pawlak did voice some discontent. “From the American perspective Europe is Germany

and Russia, while Poland is a country you fly over,” said Mr Pawlak. He pointed out that the Central and Eastern Europe (CEE) region boasts a higher population than Russia’s. “Poland has a fourth of the CEE’s population and a third of its GDP, and that is our bargaining point,” added Mr Pawlak. “Today’s meeting between Polish and American partners is

a good impulse for the deepening of mutual business cooperation between our countries,” he said.

Cooperation agreements Mr Pawlak pointed to several sectors in which cooperation could ramp up, including energy. During the summit, American Westinghouse Electric Company signed an agreement

with the National Centre for Nuclear Research (NCBJ). The agreement provides for access to US technologies and student exchange programs involving the Warsaw University of Technology. This is another step (after some similar previous agreements, including with France’s Atomic Energy and Alternative Energies Commission and with GE-Hitachi) towards strengthening the competences of Polish experts and gaining know-how for Poland’s nuclear power program. In addition, Boeing announced that it would open a research unit in Poland, which will work on Air Traffic Management, ATM) and the development of new technology. Moreover, the Ohio State University signed an agreement with the University of Warsaw for cultural and know-how exchanges between their students. The summit was first mooted by US President Barack Obama, who during his visit to Poland in May 2011 promised to initiate a meeting between top US and Polish business Remi Adekoya leaders.

Gas

Banks

Cheaper gas for Poland?

Polish banks hit as part of downgrade wave

PGNiG looks set to secure cheaper gas import rates from Russian giant Gazprom

COURTESY OF GAZPROM

Russia’s Gazprom plans to finalize talks regarding price cuts on natural gas imports for Polish state-owned gas company PGNiG. The Polish company had filed a lawsuit in February this year at an arbitration court in Stockholm seeking to lower the gas-import prices that Gazprom charges. Gazprom’s deputy chief executive Alexander Medvedev announced in June that the company now wishes to resolve ongoing price-related conflicts with three of its customers: German firms E.ON and RWE, as well as PGNiG. “I’m sure we’re nearing the end of negotiations and that the price will be corrected lower,” the Rzeczpospolita daily quoted Mr Medvedev as saying at a press conference in Moscow. “We instructed the experts together to complete the negotiation process before the end of the European soccer championship,” Mr Medvedev added. Mr Medvedev went on to

The KNF bristled at BZ WBK’s downgrade, but the effects to Poland’s banking system are expected to be limited

Gazprom deputy chief executive Alexander Medvedev expects a deal to be reached say that he was confident a compromise between the two firms would be reached. As WBJ went to press, no agreement had yet been announced. PGNiG spokesperson Joanna Zakrzewska did not respond to a WBJ request for comment on the issue. During the past year, the price of natural gas that Gazprom sold to PGNiG jumped nearly 20 percent, reaching an average of $416.70 per 1,000 cubic meters, according to daily Parkiet. This is one of the highest rates charged to

a European customer. PGNiG pays around 20 percent more for its gas from Gazprom than other consumers in Western Europe, but it could save as much as $500 million per year if it secures a favorable deal from Gazprom, analysts told WBJ. Gazprom last year sold 150 billion cubic meters of gas to the EU, Reuters reported. Poland currently imports about two thirds of the gas it uses, and 90 percent of those imports come from Russia. David Ingham

In mid-June, three Polish banks saw their credit ratings slashed after their parent companies were downgraded. Moody’s downgraded both BG˚ and ING Bank Âlàski, and Fitch did the same with Bank Zachodni WBK. Fitch lowered BZ WBK’s rating to BBB from A-, while BG˚’s long-term credit rating was cut from Baa1 to Baa2 with a stable outlook, and ING Bank Âlàski’s long-term deposit ratings were lowered to Baa1 from A2 with a negative outlook. They are the Polish units, respectively, of Spanish Banco Santander and Netherlandsbased Rabobank and ING Bank. On June 21 Moody’s then downgraded 15 of the world’s biggest banks by one to three notches, with the worst hit including Bank of America, Citigroup and Morgan Stanley. Citigroup, as well as other institutions that were also down-

graded such as BNP Paribas, Credit Agricole SA (CASA), Credit Suisse and Deutsche Bank, are present on the Polish market. As WBJ went to press, the Polish Financial Supervision Authority (KNF) had reacted to only one of these downgrades, that of BZ WBK. “This justification is incomprehensible, given the fact that BZ WBK … is a well-capitalized stock-listed firm, which is not involved in risky euro-zone markets [and] whose operations are not dependent on financing and support from Santander,” the KNF said in a press statement. While he declined to comment on the decision to downgrade specific banks or to react to the KNF’s statement, Lars Christensen, head of emerging markets at Danske Bank, said he did not expect the news to have a big impact on the Polish banking system. “There is no good news in these downgrades, but Poland is not better or worse for it. I do not share other economists’ hate for ratings, but they are a confirmation of the current situation rather than a forecast,” Alice Trudelle he said.

Euro 2012 airport boom By June 19, traffic at Polish airports had increased by up to 80% during Euro 2012, Rzeczpospolita reported, citing data from the Polish Air Navigation Services (PA˚P). The most crowded are regional airports: in Gdaƒsk, traffic increased by 80% between June 8 and 19, in Poznaƒ by 60% and in Wroc∏aw by 50%. Warsaw’s Chopin Airport however serviced only 17% more planes than in the same period of last year.

TVP earns z∏.83 mln on Euro 2012 ads By June 18, Polish public television broadcaster TVP had aired 3,000 commercials during the Euro 2012 championships, with advertisers paying a total of z∏.83 million to promote their products on the network’s channels, reported Dziennik Gazeta Prawna. The top payers were Coca-Cola (z∏.9 million), McDonald’s (z∏.8.3 million), Hyundai-Kia Group (z∏.5.25 million), Sharp (z∏.5.18 million) and Grupa ˚ywiec (z∏.4.2 million).

Construction firm goes bankrupt Polish construction company 3J, which in the last 10 years has spent over z∏.1 billion on modernizing and constructing 70 hospitals in Poland, has become yet another constructionsector firm to have fallen on hard times. A district court in Warsaw is liquidating the company at 3J’s own request, reported Puls Biznesu , which says the company had no chance of reaching an agreement with creditors.

Clinical market to grow moderately Poland’s clinical trials market is set to grow at a moderate pace until 2014, by approximately 5% a year, to reach z∏.860 million, according to a recent report by firm PMR. Over the next three years Poland will remain one of the most attractive countries in CEE due to a large number of patients willing to participate in clinical research. ●

INTERVIEW

www.wbj.pl

JUNE 25 – JULY 8, 2012

NATO

A new strategy for a changing world Retired General Stanis∏aw Koziej, current head of the National Security Bureau, talks about NATO after the Chicago summit and the importance of a missile defense system for Poland’s security post-Cold War model put an emphasis on engaging NATO in operations outside of its members’ territories at a cost of limiting its ability to defend its members directly. Lately, however, and especially since the 2010 Lisbon summit, there have been visible signs that NATO is changing strategy, and this was finalized in Chicago. Now we can talk about a new NATO strategy, which I would summarize thusly: “If we want to be effective outside, we must first ensure our security at home.” This means realizing many practical steps for strengthening NATO’s defense capabilities, such as conducting joint military exercises and training, preparing concrete contingency plans and developing a missile de-fense system. Many experts describe NATO as being weak at present. How would you respond to these criticisms?

“Afghanistan turned out to be a strategic trap for NATO” COURTESY OF BBN

Ewa Boniecka: What do you consider to be the most important and lasting outcomes of the recent NATO summit in Chicago? Stanis∏aw Koziej: The most important is the view expressed by all NATO members that the priority of the Alliance should be the collective defense of its members and their territories according to Article 5 of the Washington Treaty, which was a fundamental founding principle of the North Atlantic Treaty Organization. This confirmation is of crucial importance to Poland and we consider the outcome of the Chicago summit to be a success. It is a significant and lasting fact that the summit confirmed NATO’s transition from its most recent model, which it adopted after the end of the Cold War, to a new model which will introduce important changes to the way NATO functions. The first

It is true that experts and even officials from NATO member countries have expressed very critical opinions about NATO. Thus, the road to recovery will take time and will be costly, but I believe that there is now a strong will to make changes. Yet the global security envi-

ronment is changing so quickly that international structures and organizations find it difficult to respond. So whatever can be said critically about NATO, I am convinced that it is an organization which adapts relatively well to change, better than other international structures like the UN or even the European Union. There is no danger that NATO will collapse or be dismantled. One of the biggest challenges now is to end the NATO mission in Afghanistan and withdraw troops by 2014. What logistical, financial and political problems does this entail? The approval for the decision made in Lisbon to withdraw NATO troops from Afghanistan in 2014 represents the fulfillment of one of Poland’s postulates, with which President [Bronis∏aw] Komorowski went to the Chicago summit. The decision is much-needed, because the operation in Afghanistan turned out to be a strategic trap for NATO, so ending the operation in 2014 is a logical step for preventing the Alliance’s defeat. I do not want to evaluate all the political circumstances of our entering there, but in my opinion the longer NATO stays in Afghanistan, the longer it is postponing the fulfillment of its basic functions at home. Yet the withdrawal operation will be very complicated logistically and costly. How was the decision by French President Francois Hollande to withdraw French troops from Afghanistan in 2013 received in Chicago and how could it influence the whole withdrawal operation? The decision was met in

Chicago with confusion among [France’s] allies, but Mr Hollande is determined to do this and let’s remember that the operation in Afghanistan is not being carried out on the basis of Article 5, so it is not obligatory and every member of NATO has the right to make its own decisions. The French decided that they will end combat operations in 2013 and evacuate troops, but that they will leave some troops to help train the Afghan army. So their decision will not affect the whole architecture of the NATO withdrawal. And it could be said that due to France’s decision, there was an even stronger determination in Chicago that after 2014 NATO will not conduct combat operations in Afghanistan. This was not so clear before. What steps is NATO taking to prepare for the withdrawal of all combat troops? Political talks have to be conducted with countries whose territories would be involved

in the withdrawal, so this could involve Pakistan, Uzbekistan, Kazakhstan or Russia – depending on the chosen withdrawal routes. There are many technical problems involved and the costs of the evacuation need to be shared, but generally each country has to pay for the evacuation of its own troops. There is also the basic problem of how to help stabilize the situation in Afghanistan after 2014 and provide it with a certain amount of security, so [NATO needs to] conduct the training of the Afghan army and offer some financial help. Yet an American proposal for its allies to pay a certain amount of money for that purpose did not meet with common acceptance in Chicago. Poland did not declare any money for this purpose, while at the same time agreeing with the Americans that without some external help it would not be possible to maintain security in Afghanistan. So we could be ready to get involved in some reconstruction, train-

Stanis∏aw Koziej Stanis∏aw Koziej heads Poland’s National Security Bureau. He is an expert in defense, the army and international security, having served in the Polish armed forces and as deputy defense minister. He has also worked as a scholar of military affairs. He was co-originator of the Polish Defense Doctrine during the 1990s and the main author of “The Plan of Defending the Republic of Poland.” Mr Koziej is also the lead author of the “Defense

Strategy of the Republic of Poland within the conditions of NATO membership and Political and Strategic Defenses Doctrine.” He has written several textbooks and studies, including “Between hell and heaven. Grey security at the beginning of the 21st century” (2006), “Strategic problems concerning global and Euro Atlantic security” (2005) and “Theory of the Art of War” (1993). Stanis∏aw Koziej was born in 1943 in Glinnik, near Lublin. ●

INTERVIEW

JUNE 25 – JULY 8, 2012

ing, and advisory activities, but without spending extra money. We think that Poland has paid enough money for its participation in the NATO operation in Afghanistan. How do you envisage the process of withdrawing Polish troops? The General Staff of the Polish Armed Forces and the Ministry of Defense have already conducted conceptual work concerning the evacuation of our troops, but the details cannot be discussed publicly. I can say that we entered into that operation via a number of stages, and we want to do the same when withdrawing. … There is also the matter of bringing home military equipment. Maybe part of it would not be worth evacuating because the cost would be greater that its value. The best thing would be to sell [these items] to the Afghans, but of course the most valuable military equipment, like for instance our Rosomak [armored personnel carrier] vehicles and helicopters, would be brought back. And we hope that within the framework of an eventual Polish-American bilateral agreement some of the transport costs are covered by the Americans, yet it is too early to evaluate and we could only tell you what the results of the talks are a year from now. How do you assess the arrangements at the Chicago summit concerning the construction of NATO’s missile defense shield in Europe, and how could Russian opposition influence NATO policy in this matter? It is very optimistic that during the Chicago summit – in spite of the strong and manymonths-long Russian opposition – all NATO members decided on the necessity of building a missile defense system in Europe. A report was accepted concerning the readiness of the first stage of construction, which allows for the defense of a part of European territory against a shortrange missile attack by placing ships in the Mediterranean Sea with AEGIS anti-missile systems. An early-warning radar would also be located in Turkey. [The second stage] would end in 2015 and it would include the first ground-based missiles – SM3s – located in Romania. The third part of the system is expected to be finished in 2018 and until that time a base would be prepared in Poland to house the modernized SM3 rockets. The last stage of the NATO missile defense system will be completed after 2020, and located in Poland, the new version of the SM3 rocket would be able to destroy intercontinental missiles. This is how the situation looks now, but how it looks

once the whole system is in place – despite doubts raised by France about details, costs and the principle of using European firms in construction – only time will tell. On a political level future developments in relations between the US and Russia should be taken into consideration, as should the US stance after the presidential election in that country, because the American [contribution] is the most important in the NATO anti-missile system. Washington and Berlin have declared their wish to involve Russia in some kind of cooperation with the Western missile defense system. How do you see this situation? The whole of NATO is talking about cooperation with Russia, but while we support the best possible type of cooperation, there exist two totally contradictory approaches to missile defense. Moscow has declared its wish for the construction of one common European security system and is dead set against the NATO missile defense system. The Russian position is totally unrealistic and members of NATO answer that Russia can build its own anti-missile system and that the two systems – of NATO and Russia – could cooperate, share some information and even establish a joint center for exchanging information. Maybe at some point Russia would see the need to cooperate on missile defense, because the missile defense system is needed strategically by all of us. This is because it secures us against unpredictable nuclear threats, not only from some countries, like Iran, but also from attacks delivered by non-state actors, including groups of terrorists or international criminals. And experts say that it is only a matter of time before terrorist organizations get hold of nuclear weapons. Why is Poland so keen on having a missile defense shield on its territory? We are a border country of NATO and we need a system of missile defense. Nowadays the territory of each state is threatened first of all from the air, and Poland is no exception. And today we do not have a missile defense system and our air defense is very weak. So whether we want to or not, whether the Americans place these rockets in Poland or whether NATO builds the missile defense shield, we have to build a national system of air defense, including a missile defense system. And President Bronis∏aw Komorowski has stated that in the next 10 years the building of such a national system of missile defense should be a priority. We care deeply about

linking our system with the systems of our allies, because this will strengthen our defense capacity, and we are vitally interested in NATO building its missile defense system and locating some parts of it on our territory. And I want to point out that the NATO missile system is based on national components. The biggest and most advanced part is American, while there are also various European parts – including from France and Poland. It is our common venture in the field of missile defense which will protect Europe and, in its final stage, also the American continent. So nobody is doing us any favors in building the part of the system that will be located in Poland – it is in our common interest to do it. Yet securing financing for NATO’s defense systems is becoming increasingly difficult because European members are reducing their military budgets and America is demanding that its European allies do more. How might this dilemma be resolved? Poland sets aside a steady 1.95 percent of its budget expenditures for defense, while other countries are reducing their military expenditures. And now, during the financial crisis I do not see a possibility for changing this. So the minimum task now is to ensure that these expenditures are not reduced any further. Yet in a situation when the US is giving public signals that it will focus its strategic attentions, and therefore military expenditures, towards Asia and the Pacific region, European members have to think more about their own security. One recipe to help this process is to spend money better – here NATO’s Smart Defense concept can help. Poland is still catching up with older and richer members of the Alliance. Do you think that Poland is secure? The answer depends on what we mean by secure. Are we talking about our safety right now or about strategic security in a longer-term perspective? I think that right now as we speak, drinking a cup of coffee, we feel very secure, but we do not know what could happen in the years ahead. I think that viewed from a short-term perspective Poland is a secure country and that there are no threats on the horizon to our direct strategic environment. However, there is no assurance that in 10 or 20 years Poland’s political situation would not have changed radically. Because security is not given once and does not last forever, it is a process about which we need to think all the time and prepare ourselves for the future. And we are doing this. ●

www.wbj.pl

FINANCE & ECONOMICS

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World Bank lends Poland €750 mln The World Bank on June 19 approved the transfer of €750 million to Poland. This is the first of two loans to strengthen the country’s public finances. “This program of support to Poland is central to the World Bank’s engagement in the country in the area of public finance reform,” wrote Peter Harrold, World Bank country director for Central Europe and the Baltic Countries.

Employment continues to stagnate Employment in the Polish private sector grew 0.3% y/y in May, while wages jumped 3.8% over the same period, according to Central Statistical Office data. For the second month in a row the number of jobs remained effectively at a standstill. Compared to April, employment even dropped slightly. “The data confirmed that the Polish labor market is still weak, wage demands are moderate and the risk of second-round effects is minimal,” Bank Zachodni WBK analysts wrote in a market report.

Polish 10-yr bond yields drop Yields on 10-year Polish bonds dropped to about 5.33% on June 19, one of the lowest levels this year. This is most likely a sign of the return of foreign investors to the local market, Dziennik Gazeta Prawna reported. Polish bonds are resistant to tension in the euro area, unlike Spanish 10-year bonds, whose yield was 6.72 percent on June 19.

JUNE 25 – JULY 8, 2012

Foreign investment

Poland a favorite for investors Poland’s globally recognized macroeconomic stability has bolstered its investment attractiveness Poland ranked high in two major investment-attractiveness surveys released in June. In the first, compiled by Ernst & Young, Poland was ranked as the second-best investment destination in Europe, behind Germany. The ranking was based on responses from 840 key decision-makers in leading multinational corporations. With 10 percent of respondents choosing Poland as their top investment destination, the country outdid economic powerhouses the UK and Russia, which were chosen by 8 percent and 7 percent of respondents respectively. According to Ernst & Young, Poland’s investment

Germans on top Most attractive European countries for foreign direct investment over the next three years

beginning to see how diverse … CEE is,” said Duleep Aluwihare, managing partner at Ernst & Young Polska.

35%

Germany

Attractive for Germans Poland

10%

United Kingdom

Russia

France

Czech Republic

Romania

Turkey 0

Source: Ernst & Young

confidence has been bolstered by its inclusion into the IMF’s Flexible Credit Line, an initiative designed for economic crisis mitigation between countries demonstrating a strong

track record in economic performance. “Poland is ceasing to be one of the countries in Central and Eastern Europe. The market and investors are finally

In another report, Poland also ranked second – behind only the Czech Republic – as a top country to invest in for German investors operating in Central and Eastern Europe. Although Poland lost out to the Czech Republic in terms of investment attractiveness, 95 percent of respondents said they would invest in Poland again, while 85 percent said the same for the Czech Republic. The survey, conducted by 16 bilateral German chambers of commerce in the region, is based on responses from 1,300 German investors from 16 countries taken during February and March this year. Those surveyed were asked to evaluate 22 different factors ranging from labor productivity and

corruption to the efficiency of the taxation systems. Most investors in Poland complained about the number of taxes and their inefficient administration, rather than corruption and legal instability that seemed to plague investors in other countries of the region. The general outlook for Poland is positive. The country has retained its position among German investors since 2010 and, in contrast to the other countries in the survey, a full 48 percent of investors in Poland have said that their business prospects in the country are better than they were in 2011. According to Polish Information and Foreign Investment Agency (PAlilZ) president S∏awomir Majman, “Poland emerged unscathed from the crisis and offers a niche product today – economic stability.” Anthony Adams

US monetary policy

Bernanke continues Twist, analysts unimpressed The Fed will continue buying long-term bonds and selling short-term ones. No QE3 yet In the days leading up to the US Federal Reserve’s Federal Open Market Committee meeting in late June markets were rising on hopes that the Fed would announce a third round of quantitative easing (QE3). However, those hopes faded as the meeting approached. Instead, investors

settled on expectations that Fed chairman Ben Bernanke would extend “Operation Twist,” in which the Fed bought long-term bonds and sold short-term ones in the hopes of pushing down longterm interest rates. And an extension of Twist was exactly what investors got. Markets showed little reaction, and analysts were unimpressed. “Allowing the Twist to expire, even if you believed it was essentially a useless policy (we did), was akin to a monetary tightening, albeit a tiny

one,” ING Bank analysts wrote in a comment to investors. “So it is no big surprise to see the Fed do exactly that, i.e, extend the Twist program by $267 billion over the rest of the year,” they added. The committee left interest rates unchanged at 0.25 percent, and in the statement released following the meeting, the Fed retained its phrasing that “exceptionally low levels for the Federal funds rate at least through late 2014” would be needed. AK, RG

Production

The numbers belie Poland’s downwardtrending economy, analysts say

Poland’s top independent state audit body praised the performance of the state budget in 2011. The Supreme Audit Office (NIK) “positively assessed the implementation of the 2011 state budget,” NIK wrote in a statement. State budget revenues in 2011 grew by 1.6% more than predicted in the budget. Expenses were lower than the statutory limit of 3.4%, the NIK report read. ●

Industrial output in Poland rose by 4.6 percent year-onyear in May, according to Central Statistical Office data. The result was well above the market consensus expectation of 2.5 percent. The annual pace of growth accelerated compared to the two previous months, but analysts attribute this to the distribution of holidays and weekends this year and in 2011. “The medium-term trend is still downward-sloped,” BZ WBK analysts wrote in a

research note. This is reflected in the figure showing output growth adjusted for seasonal factors, which came in at 3.1 percent y/y in May – the slowest rate of growth since October 2009. Analysts saw the data as no justification for further interest rate hikes. “Though the output numbers for May are better than expected, they are not strong enough to become a vital argument for the central bank’s hawks,” wrote Piotr Bujak, Nordea Bank’s chief economist for Poland. “Waning activity in the Polish industrial sector is mainly due to contracting foreign orders, resulting from the

Markets widely expected Fed chairman Ben Bernanke to continue “Operation Twist”

Poland’s millionaire population ‘hit hard’

Polish industrial output rises faster than forecast in May

Audit body praises 2011 budget

SHUTTERSTOCK

deepening crisis in the euro zone. One should not expect an improvement of the situation in the domestic industry in the near term, as economic activity in the euro zone is collapsing,” BZ WBK wrote. Construction and assembly output increased in May by 6.2 percent year-on-year, the slowest growth since August 2010. “In this sector we also see a clear deceleration of growth. We expect this tendency to become even more visible in coming months amid reduced infrastructure investments and projects related to Euro 2012,” BZ WBK wrote. GP, AK

The number of Polish millionaires shrank by 7.3 percent in 2011 due to the effects of the euro-zone crisis, according to Capgemini and RBC Wealth Management’s latest World Wealth Report. A drop-off in levels of foreign direct investment and equity-market capitalization had a particularly negative effect on the number of Polish millionaires, the study found. The report defined those with $1 million or more at their disposal for investing as being high net worth individuals (HNWIs). It described the number of Polish HNWIs as being “hit hard” last year, although India and Hong Kong fared the worst. The number of million-

aires in those two countries fell by 18 percent and 17.4 percent respectively. Europe as a whole saw wealth held by HNWIs fall – by 1.1 percent in 2011 at US$10.1 trillion. For the first time in the report’s 16-year history, the number of millionaires in Asia overtook the number in North America, as wealth continues to shift across the globe due to the economic downturn. Nevertheless, North America still accounts for the highest regional share of wealth, with millionaires there holding a combined $11.4 trillion. The majority of the world’s HNWI population (53.3 percent) remains concentrated in the US, Japan, and Germany. Gareth Price

TOURISM IN FOCUS

JUNE 25 – JULY 8, 2012

www.wbj.pl

Country branding

In the eye of the beholder Many in Poland saw Euro 2012 as a way of improving the country’s standing. WBJ spoke with tourism and branding experts to find out where the country stands on the international stage Poland has transformed itself over the last 20 years, but perceptions, it seems, take longer to change than the time it takes to create a market economy, build roads and enter the EU. Riding the wave of a strong economic performance during the global crisis and boosted by an active foreign policy, Poland is now striving to achieve an international status to match its economic and demographic weight. Since it was decided in 2007 that Poland would co-host the

Stockholm-based place-branding consultancy, there are still some negative perceptions connected to Poland’s recent history. “There is a time lapse between national and international perceptions, especially for countries that are changing rapidly, such as those in Central and Eastern Europe” he said. Poland’s six-month presidency of the EU Council last year is generally viewed as very positive, as is the country’s image on the European and international scene, partly thanks to its hands-on foreign minister, experts said. “I think Poland has made a lot of effort; it is one of the leading brands of the region,” said Gyorgy Szondi, senior lecturer in public relations at Leeds Business School in the UK and author of several articles about nation branding in Eastern Europe. “Poland did a much better job during its EU presidency than Hungary. It was much more conscientiously prepared, and Poland’s approach was to use the presidency to promote the country abroad, not to gain points at the national level.” According to Mr Szondi, while Poland has generally done a good job at promoting itself to boost exports and attract tourists and investment, it has been much weaker in attracting talent, including students. “For instance, in the UK university fees are

Euro 2012 soccer championships, the tournament has been an important focus of this rebranding effort. The Polish national team might not have made it out of the group stage, but hundreds of millions of soccer fans around the world still have their eyes on the country. What will they see?

Mirror, mirror According to Marcus Andersson, partner and head of research and international markets at Tendensor AB, a

Eastern inflow Tourists arrivals to Poland, Q1 2012, (in thousands), and y/y change (in %) Origin

Arrivals

change

Total

2,960

European Union

1,915

Germany

960

100

Italy

France

Sweden

Czech Republic

Lithuania

170

Latvia

Ukraine

390

Belarus

300

Russia

140

United States

Australia, Canada, Japan, Korea

Rest of the world

135

35 Source: Polish Institute of Tourism

about to triple. Germans have picked up on this, but Poland hasn’t.” Numbers tend to support this view. Through Erasmus, the EU’s flagship student exchange program, Poland sent nearly 90,000 students abroad between 2000 and 2011 but attracted only 28,422. During the same period, Austria welcomed 36,100 students, and the Czech Republic 23,677. Larger countries such

“Poland lacks a strong national brand, it has no insurance against negative press” as France, Germany, Italy, Spain and the UK welcomed between 130,000 and 260,000 students during that time. In the same vein, Mr Andersson said Poland tends to put more emphasis on promoting history and culture than innovation, youth and creativity. “You have to strike a balance between the two, and not only hold onto a distant past,” he said.

Soccer issues When it comes to promotion efforts directed specifically at Euro 2012, Poland gets mixed reviews from experts. Roman Tkaczenko, junior consultant at Kohl & Partner

in Vienna, an international consulting company specialized in the field of hotel and tourism development, said Poland has used Euro 2012 well in terms of designing and promoting its stands at international exhibitions during the past year. Speaking from experience, since Austria – along with Switzerland – was the last country to co-host the tournament four years ago, Mr Tkaczenko confirmed that the tournament had had an important positive effect on tourism. “The Euro is a great opportunity to promote a country. You can’t pay for this kind of media coverage.” The view from Austria, he added, is that Poland is mainly a business destination. “I think the Euro increases the perception that Poland is a safe and professional destination.” Mr Tkaczenko also noted that Poland is seeing a rapid increase in the amount of tourists coming from the east. Although official numbers are not yet available, visitors from neighboring Belarus, Russia and Ukraine are expected to have formed a significant proportion of the total number of Euro 2012 visitors. Experts all agreed that individual Polish cities had not taken full advantage of the chance to promote themselves.

Fighting fires The Polish government how-

ever, got good reviews for its quick reaction in dealing with negative incidents, such as accusations of racism and instances of hooliganism. Referring to a BBC documentary which focused on soccer violence and racism in Poland and Ukraine, Mr Szondi said Prime Minister Donald Tusk’s swift reaction to calmly dispel its message had been the right one. “Spinning such issues and creating something positive from them rather than being defensive, which is more common in the region, is a strength of Poland.” He recalled how after Poland’s EU accession the Polish tourism organization in France turned around French concerns about a massive inflow of Polish workers with a humorous campaign inviting people to travel there and meet the famous “Polish plumber.” But this approach might not be enough to prevent bad publicity if repeated incidents occur during the tournament, warned Mr Andersson. “Poland lacks a strong national brand, and this means it has no insurance against negative events like the BBC program or hooliganism. It risks confirming stereotypes if it happens again.” But, he added, Poland has a lot going for it, and it should only be a matter of time before it is reflected in the country’s image. Alice Trudelle

Euro 2012 tourism

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Olsztyn and Zakopane are hoping the hectic atmosphere associated with Euro 2012 will drive tourists away from host cities and towards their neck of the woods

Olsztyn’s old town

Poland’s four Euro 2012 host cities – Gdaƒsk, Poznaƒ, Warsaw and Wroc∏aw – may be getting all the attention from soccer fans, but they won’t be getting all the tourists. At least that’s what a number of smaller towns in Poland are hoping. Olsztyn in the WarmiƒskoMazurskie voivodship and Zakopane in the Tatra Mountains have both launched “soccer-free” promotional campaigns, in the hope that holidaymakers weary of the commotion around the tournament will turn to them to find some peace and quiet away from fans. The two cities are renowned Polish holiday retreats. While Zakopane is Poland’s largest winter sports hub and a haven for hikers during the summer, Olsztyn is

a popular summer destination due its location in the Masurian Lake District north of Warsaw. Both towns see the tournament as an opportunity to increase tourist numbers. “We are targeting people who want to run out of the city to avoid traffic jams and noisy people,” said Marek Ciesielski, Olsztyn’s director of promotion, culture and tourism. “Can we be a football center? No, we don’t have any local football clubs, nor any stadium like the one in Warsaw, we therefore must attract tourists in alternative ways.” Olsztyn was the first to launch its campaign in September 2011, with the campaign having been mentioned over 200 times in the Polish press since then, according to numbers from

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Cities bet on ‘soccer-free’ slogan to attract tourists

Morskie Oko, near Zakopane the Institute of Media Monitoring. The media interest from which Olsztyn’s campaign benefited convinced Zakopane to launch a similar promotional scheme. Shortly before the tournament kicked off, however, Olsztyn redefined its offer, calling itself “football friendly” and setting up a small fan zone. According to Mr Ciesiel-

ski, about 20 percent of events in Olsztyn are currently soccer-related, while 80 percent are soccer-free. For its part, Zakopane has chosen to maintain its hard line against using soccer as a promotional tool. It remains to be seen if these efforts translate into actual increases in visitor numbers. Anthony Adams

COVER STORY

www.wbj.pl

JUNE 25 – JULY 8, 2012

Tourism

Undiscovered Poland Beaches and history: The Baltic coast and Pomorskie

Poland’s Tatra Mountains offer gorgeous hiking trails Malbork Castle is a must. A UNESCO World Heritage site, the 13th-century fortified monastery is the biggest Gothic fortress in Europe. The most important monument left by the Teutonic Knights, the brick castle is cited by UNESCO as the major material manifestation of the Crusades in Eastern Europe.

Bory Tucholskie, also provide great sights, including the country’s largest shifting sand dunes. In wintertime, the slopes of the Kashubian Uplands are a good location for snowboarding and sledding. The hilly area is also home to the Kashubian ethnic group, which has its own language and customs and is famous for its pottery. For history lovers, a visit to

Renaissance chic: Lublin and ZamoÊç

Canoe to your heart’s content in Mazury

Wild country Some 32 percent of the territory of Poland is protected, mostly on grounds of natural or scenic importance. These areas include: 23 national parks, 120 scenic landscape parks, 418 protected landscape areas, 1,441 nature reserves, 6,798 ecological sites and 35,833 natural monuments. Poland also participates in the European Union’s Natura 2000 environmental network program, which aims to protect natural habitats and species of importance at a European level. Some 19.8 percent of Poland’s territory is covered by Natura 2000.

Lacking a big touristic hub such as Gdaƒsk or Kraków, the Lubelskie voivodship is little-known among international tourists. But Lublin, the region’s biggest city, has an old town that can rival Kraków’s for beauty. Nearby, the small Renaissance town of ZamoÊç is worth a detour. The region’s location on Poland’s eastern frontier has, over the centuries, contributed to great cultural and religious diversity. Polish, Russian, Roman Catholic, Eastern Orthodox, and Jewish influences are evident in the architecture as well as in the cuisine. Travelers with a special interest in Jewish heritage will want to take a closer look at Lublin, the center of a bustling Jewish population before World War II. The small but well-preserved old town offers an attractive mix of Gothic, Renaissance and Baroque architecture. Today Lublin is also an important academic center, which gives a lively feel to this small city. About two hours’ drive from Lublin, ZamoÊç, a 16thcentury town, was placed on the UNESCO World Heritage list as a unique example of a

Renaissance town in Central Europe. Built between 1582 and 1591, the town was the personal creation of Jan Zamoyski, who called on Italian architect Bernardo Morando to build it from the ground up with Padua as a model.

Poland’s lake district: Mazury Deemed one of Poland’s most beautiful areas, the Mazury region is best known as the country’s lake district. Although less busy than the seaside in the summer, Mazury’s rivers, canals, wetlands, swamps and lakes make it a perfect destination for nature lovers. With the region’s capital Olsztyn just a little over two hours’ drive away from Warsaw, it is a great location for a weekend of peace, quiet and amazing views. Poles have long caught on to this. But even if harbor towns can be packed at the

season’s peak, getting away from the crowds on majestic lakes and through the vast interconnected waterways is easy. The region is dotted with resort towns and agri-tourism farms. With thousands of bike and hiking routes, as well as canoeing, fishing, kayaking, sailing, windsurfing and, of course, swimming on offer, active vacationers also have a wide choice. Covered with forests, lakes and rivers, Mazury is home to many bird, fish, animal and plant species, making it a top spot for wildlife enthusiasts as well. The region is also the best place to spot Poland’s emblematic stork. They occupy their giant nests, perched on all available surfaces, from May to September. Reporter and explorer Jacek Pa∏kiewicz led the campaign for Mazury’s candidacy as one of the Natural Wonders of the 7 New Wonders of the

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Gdaƒsk may have been the center of excitement on the Baltic during Euro 2012, but there is plenty more to see on the coast and in the region. Although local authorities may be a bit overenthusiastic in dubbing it the “Polish Saint Tropez, only with a slightly longer coastline,” Poland’s Baltic coast is a paradise for those into water sports, sunbathing and hiking. Coastal resort towns such as Gdynia, Krynica Morska, Ko∏obrzeg and Mi´dzyzdroje offer picturesque boardwalks, white sandy beaches and lively nightlife. Sopot in particular is famous for its 516-meter-long wooden pier, which is the longest in Europe. ¸eba, one of Poland’s most popular vacation spots, is a relaxing town surrounded by water on three sides: the Baltic sea and the ¸ebsko and Sarbsko lakes. The Bay of Puck (Zatoka Pucka), separated from the Baltic sea by the picturesque Hel peninsula, provides ideal conditions for water sports, from para-surfing to wind sailing. Eastern Pomorskie’s two national parks, S∏owiƒski and

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Whether in the flesh or on screen, soccer fans all over the world are by now familiar with at least four Polish cities. The 150 million viewers UEFA estimates watch each game of the Euro 2012 championship will have noticed the shiny stadiums and new infrastructure of host cities Gdaƒsk, Poznaƒ, Warsaw and Wroc∏aw. Kraków, already well established on the tourist trail, also got its time in the spotlight, since many teams chose to base themselves in the city during the tournament. But there is much more to Poland than these five cities. A large country by European standards, Poland offers a wide variety of stunning landscapes, from beaches in the north to primeval woodlands in the east and mountains in the south. The persistence of traditional ways of life has preserved many picturesque regions, and the government is also doing its share, with over a third of Poland’s territory being protected. Despite being well-known among Poles, some of Poland’s most beautiful

regions remain a well-kept secret from international visitors. WBJ has prepared a selection of the most amazing spots across the country.

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You came and you saw Poland’s main cities for Euro 2012. Here are five reasons why you should come back for an extended vacation

European Bison roam free in Bia∏owie˝a

COVER STORY

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JUNE 25 – JULY 8, 2012

ZamoÊç boasts historic architecture World project in 2001-2007. Although it did not win, Mr Pa∏kiewicz still deems the region as “one of those unknown areas which surely belongs on the list of the most beautiful and enchanting places on earth.”

Where the wild things are: Podlaskie Perhaps Poland’s most quintessential wildlife spot is located on the country’s border with Belarus, in the Podlaskie voivodship. It is home to the Bia∏owie˝a Primeval Forest, the largest area of original lowland forest left in Europe. Dating back to 8000 BC, the forest was once the property of Polish kings, and has survived in an almost unaltered form. The only natural wonder in Poland that features on UNESCO’s World Heritage List, it is described as “without doubt the most valuable natural area in the European lowlands.” About one-tenth of the forest is protected in Poland’s Bia∏owie˝a National Park, where some remarkable animal life can be observed, including rare mammals such as lynxes, otters, wolves and the rare European bison. Nature and outdoor lovers will also enjoy the Biebrza and Narew national parks. The

first is Poland’s largest and encompasses almost the entire basin of the Biebrza river, making it Central Europe’s largest area of natural bog. Although the myriad ecological wonders are the region’s top attractions, it doesn’t lack cultural appeal, as it offers a fascinating mix of Western and Eastern traditions. With its close proximity to Lithuania and Belarus, the region’s largest city, Bia∏ystok, has a long history of being at the crossroads of different cultures. German, Jewish and Russian populations have left a cultural and linguistic footprint on the region that can be seen in the strong presence of the Eastern Orthodox Church, as well as in the language and cuisine.

The ‘Polish Alps’: Carpathian mountains The Carpathian mountains that stretch along the southern border of Poland with Slovakia and Ukraine comprise some of the most beautiful scenery in Poland. Two of its mountain ranges are particularly worth visiting: the high Tatras, popular for skiing, and the lower Bieszczady, aptly described as a hiker’s paradise. Two hours away from Kraków, the Tatra mountain

range rightly deserves its reputation as the Polish Alps, combining alpine scenery with a web of lakes and forests. The region is perhaps best known for Zakopane, Poland’s highest town and winter sports capital, which features a wide network of ski slopes. In the summer, hikers can climb endless trails that lead to breathtaking sights like Morskie Oko (‘Eye of the Sea’). Zakopane is also an important center for Polish highland culture, with its original architecture, costumes, craft, music and food. This beautiful region was one of Pope John Paul II’s favorite retreats. On Poland’s southeastern edge, nestled between Slovakia and Ukraine, the gentler slopes of the Bieszczady mountains offer an altogether different atmosphere. This sparsely populated and largely unspoilt region is a top offthe-beaten-track destination, and one of the best places in Poland for cycling and hiking. It is also a prime spot to see Poland’s famous wooden churches, some dating back to the 17th century. Anthony Adams, Izabela Depczyk, Natalia Kopytnik and Alice Trudelle contributed to this report

Polish sites on UNESCO’s World Heritage List Cultural/Historic

• Wooden Churches of Southern Ma∏opolska

• Auschwitz-Birkenau, German Nazi Concentration and Extermination Camp

Natural

• Castle of the Teutonic Order in Malbork

• Bia∏owie˝a Forest

• Centennial Hall in Wroc∏aw

Sites submitted

• Churches of Peace in Jawor and Âwidnica

• Gdaƒsk - Town of Memory and Freedom

• Kraków's historic center

• Bia∏owie˝a National Park extension, modification

• Warsaw's historic center

• The Augustów Canal

• Kalwaria Zebrzydowska: a mannerist architectural and park landscape complex and pilgrimage park

• The Dunajec River Gorge in the Pieniny Mountains

• Medieval Town of Toruƒ • Park Mu˝akowski • Old Town of ZamoÊç • Wieliczka Salt Mine

• Royal Salt Mines in Wieliczka and Bochnia (extension to the Wieliczka Salt Mine) • Wooden Tserkvas of the Carpathian region in Poland and Ukraine Source: UNESCO

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OPINION & ANALYSIS

www.wbj.pl

JUNE 25 – JULY 8, 2012

Euro 2012: Poland’s victory Remi Adekoya

hen UEFA announced in 2007 that the world’s thirdlargest sporting event, the European Football Championship, would be co-hosted by Poland and Ukraine, many scratched their heads in wonder. Both countries had been functioning under a backward communist system less than two decades earlier, their infrastructure was much less developed than that of their WesternEuropean peers and there were serious doubts that they would be up to the job of hosting such an event. Many in Poland shared these doubts. However, as we approach the end of Europe’s football fiesta, its clear the results have been positive. Poland, and it seems Ukraine, appear to have been well prepared for Euro 2012 in terms of organization. Admittedly, there were a few hitches. But one would be pressed to find an event of such magnitude that went off without any, regardless of where it was held. This has been duly noted by most of the foreign

journalists in Poland covering the event.

Not all smooth sailing Of course, there have been some critical voices. An article in The Independent complained about the problems of getting to and from games within Poland and from Poland to Ukraine, calling Euro 2012 “the most illogical tournament ever hosted in Europe.” But such sentiments are decidedly in the minority. Most visiting fans seem quite taken with Poland, especially the much-praised and admired Irish supporters, who held up signs saying “Thank you, Poland” before following their defeated team home. Unfortunately, there was the incident before the Poland-Russia game when Polish hooligans attacked Russian fans, resulting in up to 140 people requiring medical treatment. Over 150 Poles were arrested as a result, along with some 20 Russians. Polish authorities have understandably tried to downplay these incidents, but Warsaw Mayor Hanna

Gronkiewicz-Waltz did the right thing by publicly apologizing. This wasn’t the first instance of violence at a soccer tournament. At the last European Championship, in Austria and Switzerland in 2008, Klagenfurt and Vienna saw clashes on a similar scale to those that recently occurred in Warsaw. During the 2006 World Cup in Germany there were even larger, more brutal incidents in Dortmund, Stuttgart and Cologne.

Perception trumps reality And here we have clear proof of the power of perception and how difficult it is to fight stereotypes. Germany, Austria and Switzerland are widely considered highlycivilized, well-organized countries. So news of these clashes was immediately shrugged off by most at the time as simply a matter of a few idiots who had nothing better to do than to try to bash each other’s brains out. The incidents were in no way perceived as a reflection of Austrian or German society as a whole.

But when such violence occurs in Poland, it has the potential to immediately play into the stereotypes of this part of Europe as the continent’s “wild east.” This is unfair but understandable. Luckily though, the incidents in Warsaw didn’t capture the headlines for too long. Attention quickly turned back to the soccer.

The most important game Importantly, a full week after the tournament started, the Polish Foreign Ministry quoted Marcel Bruelhart, UEFA’s point-man in charge of organizing Euro 2008 in Switzerland, as saying that “so far Poland has fulfilled its obligations and at national level, cooperation between various institutions is better than in 2008 in Switzerland … as are the stadiums and the comfort they offer fans.” He added that Poland’s organization of Euro 2012 is “on a very high level, measured by international standards.” And so Poles can and should be proud of the job their country has

done. Unfortunately, the Polish national team wasn’t able to surprise the world by making it out of the group stages. But the Polish team’s performance was never going to be the most important thing in this whole affair.

“Poland has gone a long way towards winning the most important game of all: the one against negative perceptions” What is important is that Poland has gone a long way towards winning the most important game of all: the one against the negative perceptions that many on the outside still hold of it. ● Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Leaving the financial crisis to history Stratfor

he leaders of the G20 met in Mexico on June 18. The purpose of the meeting was not altogether clear. The primary focus was on Europe and there was general agreement that the Europeans need to do something. What they

“Keeping the Europeans in a state of long-term unease is acceptable to the United States” should do was harder to say. There seemed to be sentiment in favor of stimulating Europe’s economy. This seemed a good idea, particularly for the non-Europeans who would profit from the stimulus without having to pay for it or live with its potential consequences.

China and Russia’s role Two countries with a vital interest in Europe’s good health are China

and Russia. Europe is China’s largest customer, but if it slides into recession Europeans will be buying fewer Chinese goods. At a time when China’s economy is already under pressure, the country wants a healthy European appetite for its products. That, of course, is an argument against stimulus that puts more money in the hands of consumers. Instead of buying European products and stimulating the economy, they might buy Chinese and other imports. That would make the stimulus a large economic transfer to the Chinese. The Russians are also interested in a healthy Europe. The foundation of the Russian economy is raw materials, and Russia exports its key raw material – natural gas – to Europe. The Continent appears to be sliding into recession. If that slide continues, European industries will require less natural gas, which will significantly impact the Russian economy. But Russia has a deeper view of events in Europe. Russians remember the Europe that existed before war was officially abolished on the Continent. They remember when one of the consequences of Euro-

pean nationalism was the invasion of Russia. Russians are not of the school that believes that this can never happen again – particularly since it happened more than once. They have a pessimistic view of history. They perceived Europe to be an ideal neighbor – a continent that is united economically, obsessed with prosperity and indifferent or hostile to defense expenditures. If the European Union crumbles, Russia cannot be certain of what will follow. Certainly the Russians will reach out to the Germans, and the Germans might reciprocate. But a Europe divided once again into a crowded mass of nation-states pursuing their own interests – with Germany as Russia’s primary ally – will cause anxiety. So the Russians have many reasons to want the Europeans to resolve their problems and return to a successful obsession with prosperity.

The American position The American position is even more complex. Whether American leaders admitted or even confronted this, the United States was not happy with the emergence of a uni-

fied, transnational state with an economy larger than that of the United States – and eventually an equally powerful military as well. The latter will likely not happen at this point, so the fear American leaders never faced becomes irrelevant. At the same time, the United States does not want a European meltdown; a financial crisis in Europe would significantly impact the United States. But there are certain advantages to be found in a global economic crisis before it becomes critical. Large amounts of European money seeking safe haven are joining Chinese money that has long been flowing into American markets, buying stocks, bonds, real estate and anything else that is available. To some extent this has stabilized American financial markets. The money flowed in because – on a relative basis – the United States is safer than Europe or China at the moment. Despite having a number of reasons to want the EU to break up, Washington does not want such a result because a European meltdown could destabilize the United States. Therefore, keeping the

Europeans in a state of long-term unease is acceptable to the United States. It places the Chinese and the Russians in a more difficult position and generates inflows of money from frightened investors. Of course, the truth behind summits of national leaders is that what those leaders want matters little. What they will get will be based on hard realities not subject to individual wishes. There is little room for solving the European crisis. If it could have been solved it would have been solved already. This isn’t a case of the right position paper having yet to be written. The European financial crisis is a matter of profound divergences of interests. No matter how many side meetings there are, or what the final communique says, there is the will of the 20 most powerful leaders in the world to consider. The one thing those leaders do know is that nothing said at this meeting – or most of the others – matters. History takes its own course on important issues. ● This edited version of “Leaving the financial crisis to history” is reprinted with permission of Stratfor. Stratfor.com

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.

PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL) SPORTS & LIFESTYLE EDITOR

CO-MANAGING EDITOR

ALICE TRUDELLE (ATRUDELLE@WBJ.PL) POLITICS EDITOR

REMI ADEKOYA (RADEKOYA@WBJ.PL)

DAVID INGHAM (DINGHAM@WBJ.PL)

COLUMNISTS

ADAM NARCZEWSKI ANDREW NAWROCKI

CONTRIBUTORS

E. BLAKE BERRY EWA BONIECKA ALEX ZARGANIS

EWA BROGOSZ-KORYCKA (EBROGOSZ-KORYCKA@WBJ.PL)

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KAROL KOSIOREK (KKOSIOREK@WBJ.PL)

MARKETING &SALES DIRECTOR

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MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

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MANAGING DIRECTOR MONIKA STAWICKA

MARKETING &SALES

INTERNS

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IZABELA DEPCZYK

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(ABREJWO@WBJ.PL)

PR & MARKETING SPECIALIST

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Coming up:

July 9

July 23

August 6

August 23

Developers in focus

Holiday residences

The legal perspective

Design & innovation

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

AXA extends lease at WTT Two Polish affiliates of insurance company AXA Group have signed a lease extension agreement with Akron Investment CEE II concerning over 7,000 sqm of office space that they occupy at the Warsaw Trade Tower (WTT) skyscraper in the Polish capital. According to Jones Lang LaSalle, which represented the landlord in the transaction, the agreement is the thirdlargest deal in the Polish office market so far this year. The transaction proves that the WTT remains a desirable and well-run property, said Stefan Ausch, a partner at Akron Group. ●

In this issue Nowy Sezam green-lit . . . . . . .15 Bałtyk Tower . . . . . . . . . . . . . . . .15 KBC topped out . . . . . . . . . . . . .15 Luxury homes . . . . . . . . . . . . . . .16 Property-related stocks . . . . . .16 Kraków market . . . . . . . . . . . . .17 Investment land . . . . . . . . . . . . .17

Nowy Sezam gets green light The developer has secured a final planning decision for the office-retail scheme

The project, which BBI Development NFI will realize in cooperation with the “Spo∏em” ÂródmieÊcie cooperative, will deliver usable office and retail space. “We will apply for a building permit once all the elements of the architectural design have been refined in accordance with the planning decision,” said Micha∏ Skotnicki, president of the management board of BBI Development NFI. He added that the company plans to start demolition of the existing structure and construction on the new building in the third quarter of 2013. By that time, BBI Development NFI hopes to secure debt financing for the scheme. “There are already a number of banks which are interested in granting a loan for the realization of the investment so we do not expect any problems in this regard,” Mr Skotnicki said. Even though the leasing process has not started yet, there is ample tenant interest

Warsaw Stock Exchange-listed developer BBI Development NFI can now apply for a building permit for its planned Nowy Sezam mixed-use project in the Polish capital, having secured a final planning decision for the 12,500- to 13,000sqm scheme. A local appeals court in Warsaw has issued its decision on the matter, having considered a complaint regarding the original planning decision for Nowy Sezam granted by Warsaw City Hall. According to BBI Development NFI, the final decision is in line with its vision for the investment. The Nowy Sezam development will be built at the intersection of central Warsaw’s ul. Marsza∏kowska and ul. Âwi´tokrzyska, on a site that currently houses the capital’s Sezam retail facility.

COURTESY OF BBI DEVELOPMENT NFI

Hospitality market company Louvre Hotels Group has opened its Campanile and Premiere Classe hotel complex in Wroc∏aw, Lower Silesia voivodship. The facility is located near the city’s main railway station and comprises 152 and 136 Campanile and Premiere Classe rooms, respectively. The Campanile in Wroc∏aw is the ninth hotel of the brand in Poland. Louvre Hotels Group plans to further develop the brand in the near future. Construction is soon to launch on Campanile Bydgoszcz, with the brand also being developed in Lithuania and Ukraine.

Commercial property

Construction on the investment is scheduled to launch in Q3 2013 in the Nowy Sezam project, he stressed. Mr Skotnicki pointed to the attractive location of the scheme which will be developed near the inter-

Konstruktorska Business Center topped out On June 21 developer HB Reavis held a topping-out ceremony at the construction site of its Konstruktorska Business Center project in Warsaw, the company’s first office investment in the Polish market. Construction on the sixstorey scheme has been underway since April 2011 and is scheduled to finish in the first quarter of next year. The classA facility, which is now in the process of being BREEAM pre-certified, will deliver more than 48,000 sqm of leasable space. HB Reavis has already secured OTIS and Carrier as tenants for the development. AZ

COURTESY OF HB REAVIS

New Wroc∏aw hotels open

JUNE 25 – JULY 8, 2012, LI 17/25-26

The scheme will deliver over 48,000 sqm of GLA

section of Warsaw’s two subway lines, one of which is still under construction. BBI Development NFI is currently also involved in

projects in Warsaw including the under-construction Plac Unii mixed-use high-rise building. Adam Zdrodowski

Ba∏tyk Tower project announced in Poznaƒ Investment company Sophia is planning to build a new 25,000-sqm office building in Poznaƒ, in the Wielkopolskie voivodship. Called Ba∏tyk Tower, the project will be located at the city’s Rondo Kaponiera and is scheduled to be completed in 2014. The design of the high-rise scheme was furnished by the Dutch MVRDV architectural studio, for which Ba∏tyk Tower is a debut in the Polish market, and the local Poznaƒ-based Ultra Architects office. It calls for a structure with 12,000 sqm of office space, 1,350 sqm of retail area, a 750sqm panorama restaurant and a hotel. Three levels of under-

ground parking will also be part of the investment. The architectural form of Ba∏tyk Tower will be characterized by irregularity. The maximum volume and height requirements of the site will lead to “a shape resulting in a totally different contour when approached from different sides,” MVRDV said on its website. Sophia is a joint venture formed by Garvest and Vox Group. The former entity is an investment fund that is currently also involved in a planned office project on ul. Post´pu in Warsaw’s Mokotów district. Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

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JUNE 25 – JULY 8, 2012

Luxury residential market

Holding their own Luxury residential property often proves resilient to negative economic trends, and in Poland this has largely been the case in recent years. Though the prices of the most expensive homes have slumped since 2008, there are still a lot of new offers for potential investors to choose from.

Developer optimism Representatives of developers Orco Property Group and Tacit Development Polska, the companies behind two of the largest ongoing luxury residential projects in Warsaw – Z∏ota 44 and Cosmopolitan Twarda 2/4, respectively – maintain that client interest in the investments is strong.

pointed out that in the case of luxury homes, sales usually start growing once the first display apartments, or the whole development, have been delivered. For his part, Micha∏ Borowski, president of the management board of Tacit Development Polska, said that the company had already secured reservations for approximately 20 percent of the 252 apartments in Cosmopolitan Twarda 2/4. “We will start signing the first developer contracts towards the end of the summer holidays,” Mr Borowski said. The apartments in his company’s skyscraper are priced from z∏.22,000 to more than z∏.26,000 per sqm. Mr Borowski added that apart from Poles, Cosmopolitan Twarda 2/4 has met with the interest of buyers from countries including the UK, Italy, Norway and the US. Clients include business executives working in office buildings located close to the tower, he said.

COURTESY OF ORCO PROPERTY GROUP & ADP ARCH LTD.

Poland’s most expensive homes have been doing relatively well in the face of the general slowdown in the residential market

Warsaw’s most expensive flat costs nearly z∏.20 million Alicja KoÊciesza, director of sales and marketing at Orco Property Group, said that over 30 percent of apartments in the Z∏ota 44 skyscraper had already been sold. The figure pertains to signed purchase agreements and does not include reservations, she explained. The prices of apartments in Z∏ota 44 start at z∏.18,000 per

sqm, but the average price amounts to z∏.32,000 per sqm. Ms KoÊciesza stressed there is ample interest in even the largest penthouses in the tower, including a three-level apartment sized 374 sqm and priced just below z∏.20 million. She views the sales results so far as very good considering that the project is still several months from completion. She

Lower prices

Property-related stocks Closing price on June 21

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

63.30

-1.56

63.30

92.00

-24.46

25,530,098

1,616.06

CELTIC

12.80

-5.19

12.76

22.70

-37.56

34,068,252

436.07

DOMDEV

29.15

5.50

23.50

50.10

-41.87

24,670,397

719.14

ECHO

3.68

-2.65

3.05

5.38

-30.83

420,000,000

1,545.60

ELBUDOWA

98.80

9.78

87.00

165.00

-36.13

4,747,608

469.06

ENERGOPLD

0.61

-32.97

0.61

3.90

-84.16

70,972,001

43.29

ERBUD

14.95

1.01

13.71

30.50

-43.58

12,644,169

189.03

GANT

6.14

-1.76

5.85

12.15

-51.19

20,499,953

125.87

GTC

6.36

0.95

5.20

18.75

-66.47

219,372,990

1,395.21

HBPOLSKA

0.18

-18.18

0.15

2.31

-92.14

210,558,445

37.90

JWCONSTR

4.09

-4.66

3.86

15.20

-72.73

54,073,280

221.16

LCCORP

1.30

0.00

0.85

1.48

-6.47

447,558,311

581.83

MARVIPOL

9.97

17.29

6.20

9.97

9.08

36,923,400

368.13

MIRBUD

1.04

4.00

0.99

3.97

-73.33

75,000,000

78.00

MOSTALWAR

13.90

2.21

11.30

31.54

-55.16

20,000,000

278.00

MOSTALZAB

1.06

3.92

1.00

2.67

-60.15

149,130,538

158.08

ORCOGROUP

11.01

-4.26

9.68

32.50

-67.11

35,415,406

389.92

PBG

5.70

-18.69

5.30

151.90

-96.14

14,295,000

81.48

PLAZACNTR

2.28

1.33

1.80

4.17

-47.59

297,174,515

677.56

POLAQUA

5.85

21.62

4.53

18.80

-68.88

27,500,100

160.88

POLIMEXMS

0.85

-19.81

0.78

3.53

-73.27

521,154,076

442.98

POLNORD

13.40

1.59

10.49

27.23

-50.06

23,798,439

318.90

RANKPROGR

9.59

-3.81

7.85

16.97

-25.08

37,145,050

356.22

ROBYG

1.10

-9.84

1.04

1.95

-42.11

257,935,500

283.73

RONSON

0.97

5.43

0.77

1.45

-33.10

272,360,000

264.19

TRAKCJA

0.96

4.35

0.65

3.13

-64.58

232,105,480

222.82

ULMA

40.85

5.04

38.88

83.00

-50.33

5,255,632

214.69

UNIBEP

5.00

3.95

4.47

6.66

-24.70

34,021,684

170.11

WARIMPEX

3.23

-1.52

2.95

8.55

-62.87

54,000,000

174.42

ZUE

6.70

-2.90

5.07

11.27

-38.81

22,000,000

147.40

Projects such as Z∏ota 44 and Cosmopolitan Twarda 2/4 are arguably unique, even as luxury homes go, in that they are both high-rise buildings and are thus difficult to compare with most of the other schemes in the segment. But how have other luxury developments been faring of late? Rafa∏ Gójski, an advisor at Lion’s House, a luxury real estate broker, said that while it is generally true that the segment is more resilient to economic fluctuations than its mid-market peer, the global downturn has taken its toll on luxury residences as well. At the beginning of the global economic crisis in 2008, the luxury market was indeed holding on. “However, for more than a year now we have

Dominant Warsaw Defining what exactly makes for a luxury property is always difficult, but in monetary terms luxury residential products are those which are priced from z∏.10,000 per sqm, said Jaros∏aw J´drzyƒski, an analyst at RynekPierwotny.com. Adopting this as the criterion, his industry website monitoring the primary residential

market lists approximately 3,000 luxury homes in more than 80 investments across Poland, which accounts for less than six percent of the whole market. Not surprisingly, most of the luxury offers are available in Warsaw – slightly over 2,000 in around 40 projects, which accounts for almost 10 percent of the capital’s market, Mr J´drzyƒski said. Approximately 220 offers in 16 investments can be found in Kraków, while Wroc∏aw, Tri-city and Poznaƒ respectively feature almost 200 offers in 11 investments, around 300 offers in 13 investments and more than 200 offers in eight investments, he added. According to Lion’s House data, the average price of the 15 most expensive luxury apartments and houses currently available in the primary residential market in Warsaw amounts to z∏.5.9 million. Those include, apart from the above-mentioned Z∏ota 44 penthouse, a 524-sqm home in Villa Roma in Mokotów and a 304-sqm unit in Kameralne Rezydencje Parkowe in the same district, which are respectively priced at z∏.9 million and over z∏.6.8 million. What is the quality of the most prestigious and most expensive homes in the Polish residential market, compared to their equivalents in Western Europe and the US? According to Mr J´drzyƒski, the country’s norms in this regard generally do not differ much from those in the West. He said that while Poland’s top homes may not fully compare with the most refined apartments in the world’s most expensive locations, such as London and New York, they are still able to meet the requirements of even the most demanding investors.●

COURTESY OF LION'S HOUSE

Security

been seeing a downward trend, especially when it comes to luxury real estate built by developers,” Mr Gójski said. He added that the number of new luxury developer investments is very similar to that in the boom years, but that the prices are decisively lower than four years ago. This results from factors including lower prices of land, as well as lower construction costs. When it comes to buyer preferences, potential clients have become much more selective and their expectations regarding what passes as a premium-class property have clearly risen, Mr Gójski said. According to Lion’s House data, one of the most luxurious types of residential real estate – residences located in large city villas, mostly in the secondary market – has generally bucked the wider trends. A recent study by the company found that interest in such property has been on the rise in recent years, with welloff clients increasingly choosing luxury detached houses over luxury apartments partly because the former tend to be quieter and cosier. However, having analyzed the situation in the 10 largest residential markets in Poland, Lion’s House concluded in the study that the supply of large houses sized at least 500 sqm in good city locations is actually quite limited.

Adam Zdrodowski

Large city villas have become increasingly popular with affluent buyers of late

LOKALE IMMOBILIA – REAL ESTATE

JUNE 25 – JULY 8, 2012

www.wbj.pl

Office space

Investment land

Kraków office market going strong

Growing demand for investment plots in Poland

Kraków’s reputation as a prime, quality market for office space is on the rise, according to participants of a recent meeting coorganized by Jones Lang LaSalle and the British-Polish Chamber of Commerce. Some 50 participants involved in real estate attended the meeting, where they evaluated the condition of the Kraków market in light of its sustainability, risk of obsolescence and wider socio-demographic tendencies within a global and domestic context. Kraków’s real estate market benefits greatly from Poland’s strong investment attractiveness within Europe as well as the country’s positive efforts at increasing transparency, experts said. Indeed, demand is high, with the vacancy rate having fallen from 12.1 percent in Q1 2011 to 8.9 percent in Q1 this year, according to Jones Lang LaSalle data.

SHUTTERSTOCK

Offices in the cultural capital continue to benefit from Poland’s investment attractiveness

BPO firms are key drivers of demand in the market Rafa∏ Oprocha, associate director at Jones Lang LaSalle Kraków, said, “I am glad that the perception of Kraków as a safe, stable and … increasingly transparent location for business is growing.” Since many new offices have been developed in the city over the last two decades, there is no threat of Kraków’s office space becoming technologically or functionally obsolete any time soon, unlike in many Western European cities. Indeed, more than 44 percent of office space in Brussels is considered obsolete, compared to just 2 percent in Kraków, according to Jones Lang LaSalle data. The threshold for obsolescence is 15 years. Business process outsourc-

ing firms, occupying 41 percent of Kraków’s office space, have been key drivers of demand in the market and have also served to advance Kraków’s reputation as a knowledgebased services hub. By contrast, BPO firms account for only 3 percent of office space occupancy in Warsaw. “A number of global and European trends in space planning and working culture are already pronounced in Kraków, for example a trend towards greater mobility of staff, increased use of high technology, [desk sharing] and finally the greater focus on teamwork and collaboration as opposed to individual work,” said Mr Anthony Adams Oprocha.

Investors have mostly focused on office and residential sites in recent months The number of transactions in Poland’s investment land market is growing with the total value of this year’s deals likely to exceed the 2011 level of more than z∏.1 billion, according to estimates by experts from the land agency of Colliers International. Daniel Puchalski, associate director at the Colliers land agency said investors have continued to be active so far this year, with 2012’s level set to be similar to that achieved by some of the major Polish regional markets back in the boom years. Investment plots worth approximately z∏.800 million have already been transacted in Poland since the beginning of 2012. However detailed data is difficult to come by as many deals in this market are not revealed. “Around 70 percent of transactions are kept confidential,” Mr Puchalski confirmed. By June this year, Col-

liers had brokered land transactions valued at a total of some z∏.320 million. The company is now working on a number of new deals and expects the figure to reach approximately z∏.500 million by the end of 2012. The largest transaction the company closed this year concerned the z∏.150 million sale of 13,500 sqm of office land, on which around 65,000 sqm of GLA can be developed. The location and the buyer of the plot have not yet been revealed. Office and residential sites in Warsaw have accounted for the bulk of the total transaction volume so far this year. Mr Puchalski pointed out that new plots have been

appearing on the market due to banks increasingly putting pressure on their debt-laden clients to sell land. The prices of office and residential sites have decreased compared to 2011. As far as the former are concerned, the differences range from six percent in Poznaƒ and eight percent in Warsaw to as much as 26 percent in Wroc∏aw and 27 percent in Katowice. According to Colliers International, there will continue to be significant interest in office plots in cities including Warsaw and Wroc∏aw in the coming months. Residential sites in the largest cities, particularly Warsaw, will also AZ be in demand.

Price plunge Average prices of office sites in major Polish cities/regions (€ per sqm of GLA) in the first five months of 2012 City/region

Average price

Change from 2011

Warsaw

540

-8%

Kraków

235

-11%

¸ódê

135

-10%

Poznaƒ

225

-6%

117.5

-27%

Tri-city

200

-17%

Wroc∏aw

225

Katowice

-26% Source: Colliers International

THE LIST

www.wbj.pl

JUNE 25 – JULY 8, 2012

Travel & Leisure

Five-Star Hotels in Poland Listed alphabetically

Number of conference rooms / Total number of seats in all conference rooms / Number of seats in largest conference room / Maximum exhibition area (sqm)

Internet Access: LAN / WiFi

Other

20 1 3

4 80 60 -

€85-130 €120-155 €165-280

2 WND

✓ -

✓

✓ ✓

✓ -

✓ ✓

Hairdresser; terrace with jacuzzi; limousine rental; transport to/from the airport; car rental; cigar room; safe; luggage storage; daycare; shoe cleaning; laundry services; concierge

City Park Hotel & Residence ul. Wyspiaƒskiego 26A, 60-751 Poznaƒ 61 221-8400/61 221-8402 kontakt@cityparkresidence.pl www.cityparkresidence.pl

WND WND 88

4 250 100 300

From €84 From €95 From €84

2 WND

✓ -

✓ ✓

✓

✓ ✓

Wellness & Fitness Centre; jacuzzi; gym; cardio room

50 2008

Magdalena Strój

Crown Piast Hotel & Park ul. Radzikowskiego 109, 31-342 Kraków 12 683-2600/12 683-2665 recepcja@hotelpiast.pl www.hotelpiast.pl

179 2 15

9 780 300 100

€50-160 €60-180 WND

3 WND

✓ -

✓ ✓

✓ -

✓ ✓

WND

50 1991

Aneta Konopczyƒska

Grand Hotel Kraków ul. S∏awkowska 5/7, 31-014 Kraków 12 424-0800/12 421-8360 hotel@grand.pl www.grand.pl

55 1 9

9 365 130 574

WND WND WND

4 1

✓ -

✓ ✓

✓ -

✓ ✓

WiFi in the conference rooms, restaurants, cafe and at reception

WND 1887

Robert Mrzyg∏ód

Holiday Inn Kraków City Center ul. Wielopole 4, 31-072 Kraków 12 619-0000/12 619-0005 BC@hik.krakow.pl www.hik.krakow.pl

154 2 30

5 210 50 206

WND WND WND

1 1

✓ ✓

✓ -

✓ ✓

Free access to MiniGym

WND 2001

Shmariahu Yossef Wircer

Hotel Dwór Oliwski ul. Bytowska 4, 80-328 Gdaƒsk 58 554-7000/58 554-7010 hotel@dworoliwski.pl www.dworoliwski.pl

57 2 13

2 240 140 145

z∏.349-619 z∏.409-679 z∏.849-1,059

1 1

✓ -

✓

✓ ✓

✓ -

WND ✓

Wine store; “s∏oneczna pla˝a”; jacuzzi; fitness room; steam; garden

70 2002

Izabela Wilczyƒska

Hotel Rezydent in Sopot Pl. Konstytucji 3 Maja 3, 81-704 Sopot 58 555-5800/58 555-5801 rezerwacja@hotelrezydent.com.pl www.hotelrezydent.com.pl

64 1 3

2 80 80 WND

WND WND WND

1 2

✓

✓ ✓

✓ -

✓ ✓

WND

WND 2001

Maciej Miazek

Hotel Rialto ul. Wilcza 73, 00-670 Warsaw 22 584-8700/22 584-8701 info@rialto.pl www.rialto.pl

33 1 11

2 50 40 -

€90-260 €110-295 €547

1 WND

✓ -

✓ ✓

✓ -

✓

Exercise equipment; CD/DVD players and library

WND 2003

Jacek Szcz´sny

Hotel SPA Dr Irena Eris Wzgórza Dylewskie ul. Wysoka WieÊ 22, 14-100 Ostróda 89 647-1111/89 647-1000 wzgorza@hotelspa.pl www.drirenaerisspa.com

90 1 7

5 230 100 300

€143 €157 €340

2 2

✓ ✓

✓ -

✓ ✓

WND

WND 2006

Krzysztof Kaczmarek

Hotel Stary ul. Szczepaƒska 5, 31-011 Kraków 12 384-0808/12 384-0809 stary@hotel.com.pl www.stary.hotel.com.pl

46 1 7

2 190 160 180

€130-200 €150-225 €260-570

2 WND

✓ -

✓ ✓

✓ -

✓

Free access to Wellness & SPA center; massages; international newspapers

WND 2006

Danuta Barcik

Hyatt Regency Warsaw ul. Belwederska 23, 00-761 Warsaw 22 558-1234/22 558-1235 warsaw.regency@hyatt.com www.warsaw.regency.hyatt.com

229 3 19

13 697 352 120

WND WND WND

2 1

✓ -

✓

✓ ✓

Hairdresser; florist

WND 2002

Heddo Siebs

InterContinental Warszawa ul. Emilii Plater 49, 00-125 Warsaw 22 328-8888/22 328-8889 warsaw@ihg.com www.warsaw.intercontinental.com

308 5 21

13 784 414 1,100

€85-130 €95-140 €160-220

2 2

✓ -

✓ ✓

✓ WND

✓ ✓

WND

250 2003

Christian Henkemeier

Le Meridien Bristol ul. Krakowskie PrzedmieÊcie 42/44, 00-325 Warsaw 22 551-1000/22 625-2577 bristol@lemeridien.com www.lemeridien.pl/warsaw

174 2 31

10 620 180 WND

NA z∏.1,460-1,760 z∏.1,960-7,500

1 2

✓ -

✓ ✓

✓ -

✓ ✓

WND

187 1991

Michael Goerdt

Bohema Hotel & SPA ul. Konarskiego 9, 85-066 Bydgoszcz 52 560-0602/52 581-0088 rezerwacja@hotelbohema.pl www.hotelbohema.pl

Guarded parking / Underground parking

Non-smoking rooms / Air conditioning

Newsstand/Souvenirs / Beauty parlor

Business center / Currency exchange

Sauna / Tanning facilities

Rates including breakfast: Single / Double / Suite

Amenities Indoor swimming pool / Outdoor swimming pool

Company name Address Tel./Fax E-mail Web page

Number of restaurants / Number of bars, cafeterias and pubs

Total number of rooms / Wheelchair-accessible rooms / Number of suites

www.bookoflists.pl

Number of employees / Year founded

Manager

WND 2008

J. J. Franczak

THE LIST

www.wbj.pl

Sauna / Tanning facilities

Business center / Currency exchange

Newsstand/Souvenirs / Beauty parlor

Non-smoking rooms / Air conditioning

Guarded parking / Underground parking

Internet Access: LAN / WiFi

Other

Litwor ul. Krupówki 40, 34-500 Zakopane 18 202-4200/18 202-4205 rezerwacja@litwor.pl www.litwor.pl

48 1 5

2 80 60 -

WND WND WND

1 WND

✓ -

✓ ✓

WND

WND 1999

Szymon Kukulski

Mamaison Hotel Le Regina Warsaw ul. KoÊcielna 12, 00-218 Warsaw 22 531-6000/22 531-6001 reception.leregina@mamaison.com www.mamaison.com/leregina

58 2 3

2 140 100 150

€240-294 €265-319 €521-1,493

1 1

✓ -

✓

✓ ✓

Free internet access

WND 2004

Marzanna Rutkowska

Monopol ul. Dworcowa 5, 40-012 Katowice 32 782-8282/32 782-8283 monopol@hotel.com.pl www.lhr.com.pl

105 5 3

3 220 120 214

z∏.490-560 z∏.580-680 z∏.960-1,200

2 WND

✓ -

✓ ✓

✓

✓ ✓

✓

Heated floors in bathrooms; restaurant discounts for guests; 10% discount on purchases in Vinoteka

WND 2003

Roman Dembek

Radisson Blu Centrum Hotel ul. Grzybowska 24, 00-132 Warsaw 22 321-8888/22 321-8889 info.warsaw@radissonblu.com www.radissonblu.com/hotel-warsaw

284 4 27

8 580 400 588

WND WND WND

2 2

✓ -

✓ ✓

✓ -

✓ ✓

✓

✓ ✓

Free access to First Fitness Centre

WND 2002

Olof Karlsson

Radisson Blu Hotel Gdaƒsk ul. D∏ugi Targ 19/ Powroênicza, 80-828 Gdaƒsk 58 325-4444/58 325-4455 info.gdansk@radissonblu.com www.radissonblu.com/hotel-gdansk

125 4 9

6 280 220 165

z∏.320-450 z∏.360-490 z∏.750-900

1 1

✓ -

✓ ✓

✓

✓ ✓

✓

Fitness Center

60 2009

Maciej Miazek

Radisson Blu Hotel Kraków ul. Straszewskiego 17, 31-101 Kraków 12 618-8888/12 618-8889 info.krakow@radissonblu.com www.radissonblu.com/hotel-krakow

196 5 19

8 313 150 134

€110-220 €110-220 €220-320

2 1

✓ -

✓ ✓

✓

✓ ✓

Free internet access; hotel taxi; two-level underground parking; public transport stops near the hotel; Park Planty near the hotel; view of Wawel Castle and the Old City; Surf&Turf buffet; breakfast Grab&Run; Super Breakfast; bicycles available for guests

80 2003

Nino Rosenlund

Radisson Blu Hotel Wroc∏aw ul. Purkiniego 10, 50-156 Wroc∏aw 71 375-0000/71 375-0010 reservations.wroclaw@radissonblu.com www.radissonblu.com/hotel-wroclaw

157 2 5

9 410 140 126

€65-145 €70-160 €170-265

1 WND

✓ -

✓ ✓

✓ -

✓ ✓

Free internet access

85 2002

Martin Mante

Sheraton Kraków Hotel ul. PowiÊle 7, 31-101 Kraków 12 662-1000/12 662-1100 krakow@sheraton.com www.sheraton.com/krakow

224 3 8

8 422 300 310

WND WND WND

1 2

✓ -

✓ ✓

✓

✓ ✓

Link@Sheraton; club floor; concierge

WND 2004

Stijn Oyen

Sheraton Poznaƒ Hotel ul. Bukowska 3/9, 60-809 Poznaƒ 61 655-2000/61 655-2001 gss.poznan@sheraton.com www.sheraton.pl/poznan

167 3 13

6 292 200 416

From z∏.360 From z∏.360 From z∏.610

2 3

✓ -

✓ ✓

Safe in each room; cable TV; coffee and tea set; ironing board; openable windows; Sheraton Fitness free access; laundry services; luggage storage; club floor

WND 2006

Marco Foelske

Sheraton Sopot Hotel, Conference Center & SPA ul. Powstaƒców Warszawy 10, 81-718 Sopot 58 767-1000/58 767-1001 sopot@sheraton.com www.sheraton.pl/sopot

189 2 7

10 1,209 650 1,000

z∏.950 z∏.990 WND

2 WND

✓ -

✓

✓ ✓

Safe in each room; cable TV

WND 2008

Iva Trifonow

Sheraton Warsaw Hotel ul. B. Prusa 2, 00-493 Warsaw 22 450-6100/22 450-6200 warsaw@sheraton.pl www.sheraton.pl

326 WND 24

12 WND 650 1,163

WND WND WND

4 2

✓ -

✓ ✓

✓

✓ -

Safe in each room; cable TV; ATM

WND 1996

Thomas Schoen

Sofitel Grand Sopot ul. Powstaƒców Warszawy 12/14, 81-718 Sopot 58 520-6000/58 520-6099 H3419-AM@sofitel.com www.sofitel-grand-sopot.com

125 2 2

5 440 240 450

€136-336 €158-358 €345-495

1 1

✓ -

✓ ✓

✓ -

Casino; safe in each room; free access to Centrum Wellness (swimming pool, sauna, gym); MyBed Concept; SPA; ATM; private beach

WND 1927

Patrick Carabin

Sofitel Warsaw Victoria ul. Królewska 11, 00-065 Warsaw 22 657-8011/22 657-8057 H3378@sofitel.com www.sofitel-victoria-warsaw.com

290 3 53

15 1,170 700 800

From €90 From €110 From €127

1 1

✓ -

✓

✓ ✓

WEB Radio; florist; free wireless internet access

200 1976

Jean-Michel Lathuilliere

The Westin Warsaw Al. Jana Paw∏a II 21, 00-854 Warsaw 22 450-8000/22 450-8111 warsaw@westin.com www.westin.com

357 WND 4

11 WND 560 1,294

WND WND WND

1 1

✓ -

✓ ✓

✓

✓ -

Safe in each room; cable TV

WND 2003

Stephan Sieberg

Warsaw Marriott Hotel Al. Jerozolimskie 65/79, 00-697 Warsaw 22 630-6306/22 830-0311 mail@marriott.com.pl www.marriotthotels.com/wawpl

518 -

11 1,652 700 -

z∏.285 z∏.369 z∏.525

4 3

✓ -

✓ ✓

330 1989

Albert Helms

Company name Address Tel./Fax E-mail Web page

Total number of rooms / Wheelchair-accessible rooms / Number of suites

Indoor swimming pool / Outdoor swimming pool

Amenities Number of restaurants / Number of mbars, cafeterias and pubs

Number of conference rooms / Total number of seats in all conference rooms / Number of seats in largest conference room / Maximum exhibition area (sqm)

JUNE 25 – JULY 8, 2012

Rates including breakfast: Single / Double / Suite

Notes: NA = Not Applicable, WND = Would Not Disclose. Research for The List was conducted in January 2012. Number of employees is as of December 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Number of employees / Year founded

Manager

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. Katarzyna Hernik, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, 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.

MARKETS

www.wbj.pl

JUNE 25 – JULY 8, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,573.57 (June 21 close)

S&P500

2,859.09 (June 21 close)

-0.62% (for the week)

FTSE100

1,325.51 (June 21 close)

0.80% (for the week)

DAX

5,566.40 (June 21 close)

-0.27% (for the week)

1.82% (for the week)

Fed worries markets

NIKKEI225 6,343.13 (June 21 close)

8,824.07 (June 21 close)

3.33% (for the week)

-0.16% (for the week)

CHANGE: 2.05%

CHANGE: 7.08%

CHANGE: 4.07%

CHANGE: -4.09%

CHANGE: 1.04%

CHANGE: 0.10%

(year to June 21)

52-week high: 13,359.60

52-week high: 3,134.17

52-week high: 1,422.38

52-week high: 6,084.10

52-week high: 7,523.53

52-week high: 10,255.20

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,135.79

The outcome of the Greek parliamentary elections, in which the winners were proEurope parties, was the news that influenced stock markets the most on Monday, June 18. In Warsaw, however, gains recorded in the morning did not last long and by the end of the day the overall WIG and the blue-chip WIG20 had closed 0.04 percent and 0.22 percent down, respectively. Investor sentiment improved on Tuesday on some positive news from the US, including an increase in the number of issued home building permits. The WIG20 rose by 1.91 percent, with KGHM, Lotos and PKN Orlen some of the best performers. Smalland medium-cap stocks gained as well – in total over 55 percent of the firms on the WSE increased their value on the day. On Wednesday, investors waited to hear the outcome of

Major indices WIG

40,207.61 (June 21 close)

WIG20

2,245.58 (June 21 close)

21.06

20.06

19.06

18.06

15.06

14.06

13.06

12.06

11.06

08.06

06.06

05.06

04.06

21.06

20.06

19.06

18.06

15.06

14.06

13.06

12.06

11.06

2,000

08.06

36,000

06.06

2,060

05.06

37,200

04.06

2,120

01.06

38,400

31.05

2,180

30.05

39,600

29.05

2,240

28.05

40,800

25.05

2,300

24.05

42,000

01.06

52-week low: 2,035.80

31.05

Change year to June 21: 2.35%

30.05

52-week low: 36,549.47

29.05

52-week high: 2,895.87

Change year to June 21: 4.93%

28.05

Change for the week: 1.71%

25.05

52-week high: 49,747.78

24.05

Change for the week: 2.34%

Top 5 POLLENAE POLAQUA MOSTALPC WIELTON EUCO

Closing 9.90 5.85 16.95 3.15 9.91

% change (week) 52-week high 23.44 10.80 21.62 18.80 20.38 38.00 18.42 3.80 17.98 17.50

52-week low 7.19 4.37 10.35 1.61 6.46

Top 5 TVN LOTOS PGNIG PKNORLEN PKOBP

Closing 8.57 27.49 4.20 36.72 33.68

% change (week) 7.80 6.67 6.06 4.35 4.18

52-week high 17.29 46.43 4.65 53.10 42.66

52-week low 7.38 21.30 3.25 30.33 27.95

Bottom 5 GETINOBLE ENERGOPLD IFCAPITAL POLIMEXMS PBG

Closing 1.42 0.61 3.90 0.85 5.70

% change (week) -60.00 -32.97 -23.08 -19.81 -18.69

52-week low 1.32 0.59 0.45 0.77 5.21

Bottom 5 POLIMEXMS PBG TPSA BZWBK CEZ

Closing 0.85 5.70 15.99 228.00 121.40

% change (week) -19.81 -18.69 -5.55 -1.72 -1.62

52-week high 3.55 151.90 18.56 240.00 148.50

52-week low 0.77 5.21 14.30 190.10 116.10

52-week high 2.15 3.93 14.97 3.55 151.90

sWIG80

Armageddon postponed

9,505.95 (June 21 close)

52-week high: 2,922.89

Change for the week: 2.29%

Change year to June 21: 3.00%

52-week low: 2,076.52

Change year to June 21: 10.48% 0

06.06

08.06

0 05.06

21.06

0 04.06

0 01.06

20.06

3 31.05

19.06

3 30.05

18.06

2 29.05

15.06

2 28.05

14.06

2 25.05

WIG-Banki

13.06

2 24.05

21.06

20.06

19.06

18.06

36.68 (June 21 close)

52-week low: 8,218.71

5,766.43 (June 21 close)

21.06

20.06

19.06

18.06

15.06

14.06

13.06

12.06

11.06

08.06

06.06

05.06

04.06

21.06

20.06

19.06

18.06

15.06

14.06

13.06

12.06

11.06

08.06

5,100

06.06

05.06

5,280 04.06

01.06

5,460

31.05

30.05

5,640

29.05

5,820

28.05

25.05

6,000

24.05

01.06

52-week low: 4,944.19

31.05

Change year to June 21: 0.42%

30.05

52-week low: 36.59

29.05

52-week high: 7,071.91

Change year to June 21: -11.59%

28.05

Change for the week: 3.59%

25.05

52-week high: 56.98

24.05

Change for the week: -0.16%

SOURCE: WSE

NewConnect

15.06

14.06

13.06

12.06

11.06

08.06

8,000

06.06

2,000

05.06

8,400 04.06

2,100

01.06

8,800

31.05

9,200

2,200

30.05

2,300

29.05

9,600

28.05

2,400

25.05

10,000

24.05

2,500

Adam Narczewski X-Trade Brokers DM SA

52-week high: 12,593.39

12.06

2,256.00 (June 21 close)

11.06

mWIG40

RA, AZ

Currency report

Other indices Change for the week: 0.97%

the US Federal Reserve’s conference. Even better-thanexpected data from the Polish economy passed without notice on the WSE. Polish industrial production rose by 4.6 percent y/y in May compared to 2.9 percent in April. Still, the WIG20 ended the day down 0.45 percent. Thursday’s session was spent under the shadow of the Fed’s announcement. Its decision to continue with Operation Twist was what the market had expected. But its decision to lower growth expectations for the US economy for 2012 caused concern. The WIG20 ended down 0.7 percent. Friday’s session was the third in a row in which the main indices of the WSE ended in the red, but only just. The WIG20 ended the day 0.15 percent down, while the WIG was down 0.05 percent.

Armageddon has been postponed, as the Greek government was able to create a proEuropean coalition and will keep EU and IMF-mandated austerity programs. Of course, that does not mean a possible “Grexit” is out of the picture. Greece is still in a difficult situation but the main worries right now are about Spain. Instead of watching a rally of the EUR/USD and z∏oty, we observed the market fluctuating. The EUR/USD opened the week at its monthly high of $1.2745 but retreated to $1.2530 throughout the week. Investors were hoping that the Fed would give a positive impulse to the markets, but the US central bank “only” extended its Operation Twist (selling short-term and buying long-term bonds) program. Market participants were hoping for another round of quantitative eas-

ing and more money injected into the economy. From the local market we learned that core CPI inflation declined to 2.3 percent on a yearly basis, while industrial production grew by 4.6 percent. The z∏oty remained affected mainly by external factors. The EUR/PLN exchange rallied to its weekly high of z∏.4.30 after concerns about Spain emerged, but the local currency regained ground to finish the week at z∏.4.25. The USD/PLN was unable to break the z∏.3.32 support level and the increased risk aversion sent it to z∏.3.39. The situation on the markets is still volatile and investors will just have to get used to it. The problems in Europe are far from being solved, but news about them will be determining the movements of the z∏oty over the coming weeks. ●

currency rates 4.2348 22.06

SOURCE: NBP

4.2165 21.06

4.2980 19.06

4.2399

4.2665 18.06

20.06

4.3039 4.0

15.06

0.1020 22.06

0.1025

0.1030

PLN-100JPY

4.8

21.06

20.06

0.1035 19.06

18.06

0.1046 15.06

3.5459

3.5564 22.06

0.1

0.1047

PLN-RUB

0.11

21.06

3.5397 20.06

3.5586 19.06

18.06

3.5740 15.06

5.2789

5.3158 22.06

3.5

3.5536

PLN-CHF

3.7

21.06

5.2642 20.06

5.2772

5.3032 19.06

18.06

5.20

15.06

3.4025 22.06

3.3617

5.45

5.2930

PLN-GBP

5.70

21.06

3.3471 20.06

3.3971

3.3916 19.06

18.06

3.2

15.06

4.2710 22.06

4.2585

3.5

3.3741

PLN-USD

3.8

21.06

4.2503 20.06

4.2925

4.2733 19.06

18.06

4.20

15.06

4.35

4.2680

PLN-EUR

4.50

SPORTS

JUNE 25 – JULY 8, 2012

www.wbj.pl

Polish soccer

Euro 2012

Smuda set to leave Poland job

Platini praises Poland and Ukraine

Poland’s national soccer coach Franciszek Smuda will leave his position following the completion of his contract, the president of the country’s soccer association (PZPN), Grzegorz Lato, confirmed in June. Mr Smuda, whose time in charge ultimately ended in failure following Poland’s inability to qualify for the

Euro 2012 knockout stages after defeat to the Czech Republic, will not have his contract renewed when it comes to an end in August. “I met Franciszek Smuda and spoke about the future,” Mr Lato told journalists. “We agreed that he will not continue his work with Poland.” Mr Lato went on to confirm that PZPN had already received numerous applications for the role that has been held by Mr Smuda since he took over from Leo Beenhakker in October 2009. The former Lech Poznaƒ and Widzew ¸ódê coach’s

time in charge will ultimately be judged a failure, but he did oversee something of a revival for the national team, which could so easily have seen Poland escape the group stage but for some poor finishing in the games against Greece and the Czech Republic. The new manager is set to be announced in time for a friendly match against Estonia on August 15. In their qualifying group for the 2014 FIFA World Cup Poland will play England, Moldova, Montenegro, San Marino and fellow Euro 2012 co-hosts Ukraine.

The UEFA president said the two nations had “already won the Euros” in terms of the long-term legacy the tournament will leave UEFA president Michel Platini said that despite the fact that both Euro 2012 co-host nations had been knocked out in the group stage, they should still be very proud of what they have achieved in terms of organizing the tournament. “It’s not been perfect but I’m very, very happy,” said Mr Platini. “Poland and Ukraine have delivered. People [of Poland and Ukraine] are saying thanks that you had confidence and trust in us. They have already won the Euros. The Championship can bring lots of very important things for the development of these countries.” “The atmosphere in the stadiums has been 99.9 percent fantastic,” he said, before specifically highlighting the Poland-Russia and UkraineSweden games as the most extraordinary in terms of atmosphere.

David Ingham

American football

Mr Platini said he was “very, very happy” with Euro 2012 He also said that the number of goals and standard of play have been a major plus. “It’s difficult to do better than we have done. But doing better would mean perfection,” Mr Platini added. And it seems the fans who have traveled from all over Europe to come to the games agree with the UEFA president’s sentiments. At the Group C match between Spain and Croatia the whole stadium spontaneously erupted into Pol-

COURTESY OF MARCIN WARPECHOWSKI

Eagles thump Rebels, will play Devils in semis

COURTESY OF WIKIMEDIA COMMONS

Poland’s head coach will not have his contract renewed when it runs out in August

Despite being the Topliga regular season’s final fixture, the game between the Warsaw Eagles and the AZS Silesia Rebels had an anticlimactic feel to it. With both teams already locked into their playoff seeds and the semifinal match-ups set, neither team wanted to risk much in what turned out to be a 38-0 victory for the team from the capital. All the scoring came in the first half of the contest as both teams emptied the benches after the break. The Eagles got off to a great start with a 54yard kickoff return by Norman Seignious, which was followed two plays later by a 14-yard Grzegorz Janiak touchdown reception. Micha∏ Kozdrój, playing against his old team, scored shortly thereafter to

make it 14-0 to Warsaw, and Kevin Lynch threw his second touchdown of the first period just before the teams changed sides to make it 21-0. Lynch would finish the game with three touchdown passes, giving him 26 for the season. He finished the year ranked second in that category, trailing only Kyle McMahon of the Gdynia Seahawks. Lynch connected with Tomasz Balcer in the second quarter for his final touchdown pass of the game. The Eagles allowed the Rebels only three first downs in taking their fourth straight win in the series. Both teams will now turn their attention towards the postseason. The Rebels, who finished the regular season with a record of 3-7 (including a record of 0-6 against the other three playoff-bound teams), will be on the road to take on the top-seeded Gdynia Seahawks in the first semifinal, on June 30. The Rebels lost both

meetings with the Seahawks this season, by a combined score of 110-19. The Eagles will face an old rival in their quest to reach NAC SuperFinal VII, welcoming the Wroc∏aw Devils to Warsaw on July 1 for the second semifinal. The Eagles, who have lost to the Devils in the semifinal round in each of the last two seasons, finished the regular season a game ahead of Wroc∏aw with a record of 8-2. The teams split their two matchups this year, with each team winning at home. Elsewhere, the Gdynia Seahawks traveled to Poznaƒ to put the finishing touches on their best regular season ever, thumping the Koz∏y 41-0 for their eighth-straight victory. The Koz∏y were eliminated from playoff contention with the defeat, giving the AZS Silesia Rebels the fourth and final post-season berth. Alex Zarganis

Topliga semifinals schedule Saturday, June 30, 5 pm: #4 AZS Silesia Rebels (3-7) @ #1 Gdynia Seahawks (9-1) Sunday, July 1, 2 pm: #3 Wroc∏aw Devils @ (7-3) #2 Warsaw Eagles (8-2)

The Eagles were too strong for the Rebels

Warsaw beat Silesia 38-0, but the Rebels still managed to eek into the playoffs

ish fans’ traditional chant of “Polska bia∏o czerwoni” (“Poland white and red”) to show their feelings for the country, with the Spanish fans being the ones to begin the chant. Despite the pre-tournament pessimism in some quarters that Euro 2012 would be a disaster, it seems that although both hosts failed to make it to the quarterfinals, they’re still winners in most people’s eyes. David Ingham

LIFESTYLE

www.wbj.pl

JUNE 25 – JULY 8, 2012

Opera

Warsawfication

The last of Mozart?

Red Hot Chili Peppers Impact Festival July 27 Bemowo Airport Warsaw Legendary American rock band the Red Hot Chili Peppers will be making an appearance at the Impact Festival in Warsaw, where they will promote their latest album and wow fans with their greatest hits. The Impact Festival will allow Bemowo Airport, which

has already played host to a number of world-famous artists on tour in Warsaw, including Madonna in 2009 and Michael Jackson in 1996, to add yet another famous footprint on its runway. The band will be on tour in Central and Eastern Europe between July 20 and August 1, visiting Russia, Ukraine, Estonia and Lithuania, along with Warsaw, to promote their new album, “I’m with You.”

The band has won seven Grammy Awards and sold over 65 million records worldwide. They were inducted into the Rock and Roll Hall of Fame earlier this year. Others famous bands set to perform at the festival include Kasabian, Public Image Ltd, The Charlatans and the VacAnthony Adams cines. Tickets start from z∏.209 and are available from eventim.pl

COURTESY OF ELLEN VON UNWERTH/RED HOT CHILI PEPPERS

The 22nd Mozart Festival Through July 26 Various locations around Warsaw The annual Mozart Festival which began on June 15 may be taking place in Warsaw for the last time. The Warsaw Chamber Opera, which is under severe financial distress, is hosting the 22nd annual edition through July 26. “I invite you most eagerly to the productions and concerts, as it is highly likely that this festival – and the Warsaw Chamber Opera as you have known it for the last 50 years – will soon be no more,” said Stefan Sutkowski, the opera’s managing and artistic director. “I must add that this has occurred despite modest financial rewards, which in recent years have been further reduced,” he added. The highlights of the festival

COURTESY OF JAROS¸AW/CHAMBER OPERA

Concerts

include a symphonic concert at the Royal Castle in Warsaw at 7 pm on June 27, as well as the performance of famous pieces including “Don Giovanni,” “Zaide,” “Cosi fan tutte” and “Mitridate, re di Ponto.” In addition to the Royal Castle, the locations for the various events include the Warsaw Chamber Opera, the Royal ¸azienki Chamber Theater and the Wilanów Palace. Admission is free of charge. The Mozart Festival has been a Warsaw summer tradi-

tion since 1991, when the Warsaw Chamber Opera performed 26 of Mozart’s stage works on its own – a previously unseen achievement for a single opera theater – in commemoration of the 200th anniversary of the composer’s death. It is nothing short of an unmissable event if you are a connoisseur of classical music. This may well be your last chance. Anthony Adams

For more information, log on to perakameralna.pl

Opera

A broken home “The Fall of the House of Usher” June 27 and 29 National Opera Plac Teatralny 1, Warsaw Edgar Allan Poe’s famous angst-ridden short story “The Fall of the House of Usher” has come to Warsaw’s National Opera, where its macabre plot is given a modern-day setting.

Conducted by Wojciech Michniewski, this chamber opera production will reinvent Philip Glass’ 1988 production by replacing the traditional Gothic setting with an “ordinary” modern-day home. The opera evokes the fear, anxiety and guilt generally associated with Poe’s work by capitalizing on its portrayal of

neurosis and supplementing the monotonous rhythm of the story with the composer’s trance music. Published in 1839, the short story is often considered Poe’s best-known work of prose. Tickets start from z∏.40. Anthony Adams

For more information, log on to teatrwielki.pl

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.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

Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl

Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

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

LAST WORD

JUNE 25 – JULY 8, 2012

www.wbj.pl

Tech Eye

Euro 2012 and a better kind of violence

COURTESY OF BLIZZARD ENTERTAINMENT

terone-crazy about a sport in which “fall down and cry like a baby” is a legitimate tactic. Or is it just an excuse to go caveman for an afternoon? Techeye has witnessed several gruesome examples of devolution particularly on public transport which has been thronged with yapping, scarcely bipedal creatures in war paint. One time we watched a bleary-eyed humanoid engage in fisticuffs with a ticket machine. He lost. It’s sad to see such mindless violence in Warsaw. That’s why, in protest of Euro 2012 and its pageant of goonery, we’re devoting this column to a quieter, more civilized kind of mindless violence called Diablo III (Diablo3.com). You may have heard of it. The PC/Mac-only game launched on May 15 and within 24 hours had already sold 3.5 million copies at around $60 each. Diablo III is, in gaming parlance, a hack-and-slash dungeon crawler (i.e., you spend much time hacking and slashing through dungeons). As the third game in the Diablo series, the plot is well-worn: Your character is yet again the world's only hope against the dark forces of Hell.

There are five character classes: the leapy barbarian, the quick-fisted monk, the zombie-lurvin’ witch doctor, the sparkle-fairy wizard and the demon hunter, who manages the inexplicable (but awesome) feat of dual-wielding crossbows. As you play, your character gains levels and new abilities, some of which are useful. Somewhat oddly, given the urgent nature of your quest, much time is spent digging through piles of shiny equipment, looking for new hats or necklaces to make your character even more heroic by adding, say, another 0.2 percent to your chance to inflict double damage upon the minions of Hell. This does nothing for suspension of disbelief. On the other hand, it feels pretty good when you find an Extremely Splendid Balaclava of Arse-Whuppage. Is Diablo III a good game? Well, saving the world does get old after a while and the weak plot becomes an annoyance when you play through on

multiple difficulty levels. But at its core, Diablo III is all about perpetrating massive, guilt-free carnage on demons and the undead, and that’s pretty cool. There are achievements,

Though you’ll need a good computer and monitor to enjoy high-end performance from the game engine. Japan’s Eizo Nanao Corporation (eizo.com) can help you with the latter. The firm recently unveiled the terribly named FORIS FS2333, a 23-inch full HD monitor designed for gaming and graphics-intensive activities. The FORIS FS2333 boasts a triumvirate of imaging technologies called Smart Insight, Smart Resolution and Smart Detection which automatically (and intelligently) enhance shadowy images, correct for blur and sharpen definition, respectively. The monitor will be available from midJuly; no pricing details are available yet. Presumably you could watch football on the FORIS FS2333, but we’d advise against it. This is a gorgeous screen – why watch a bunch of dainty princesses falling all over themselves to fake injury when you could be smiting evil in full HD glory? ● COURTESY OF EIZO

Techeye has had quite enough of Euro 2012, thank you very much. We’re tired of the insanely bland marketing campaigns and exhausted by “Oh, the match was [adjective]!” conversations taking place in every office, shopping center and public toilet we’ve visited recently. Our main complaint has to do with the “fans,” though. What is it about football – or soccer, if you’re dimwitted American – that transforms apparently normal people into hooting, froth-jawed simpletons? Is it really love of the game? It’s hard to believe people can get so testos-

online co-op play and all manner of nice design touches, such as pop-ups bearing messages like “New Record! Massacre: 168 monsters killed!” Warms the cockles, that does. Here’s another thing Diablo III has going for it: top-notch graphics.

Ever lost a skirmish with a ticket machine? Let us know: techeye.wbj@gmail.com

Food & drink

Taste your favourite coffee in coffeeheaven C

offeeheaven is much more than just a coffee – for the customers it has become a synonym of the best-quality products, the best people and the best ambient atmosphere. For 12 years, as an unquestionable Polish market leader, it has been a haven for all those seeking premium coffee and food. Havens of relaxation, recharge and revitalisation, coffeeheaven stores are conveniently located in shopping malls, high streets, railway stations and airports.

It’s an ideal place for those on the move as well as for those who wish to relax and enjoy their coffee and snacks. Come and visit the unforgettable coffee stores of coffeeheaven. Locations: • BUW, ul. Dobra 55/56 • Nowy Âwiat, ul. Nowy Âwiat 46 • Porty Lotnicze / Airport, ul. ˚wirki i Wigury 1 • Forum, Al. Jerozolimskie 33 • Plac Trzech Krzy˝y / Three Crosses Square,

ul. ˚urawia 1A • Plac Teatralny / Theatre Square, ul. Senatorska 18 • Plac Bankowy / Bank Square, Pl. Bankowy 2

Brought to you by coffeheaven

• Dworzec Centralny PKP / Warsaw Central railway station, Al. Jerozolimskie 54 Find our location, www.coffeeheaven.pl

RISTORANTE SAN LORENZO

AL. JANA PAWﾅ、 II 36

TEL. 22 652 1616 WWW.SANLORENZO.PL