WBJ #13, 2013

Pass the gas

A new center-left

Confusion erupts after Vladimir Putin orders Gazprom to build a gas pipeline through Poland

WBJ sat down with Marek Siwiec, co-leader of Europe Plus, a new center-left political initiative, to discuss its plans for the future 10-11

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2, 4

VOLUME 19, NUMBER 13 • APRIL 8-14, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Will Germany lead?

In an exclusive interview, Germany’s former foreign minister, Joschka Fischer, explains why his country has not provided the leadership needed to heal the EU’s woes 12-13

COURTESY OF GRIFFIN

REAL ESTATE

• Griffin in Powsin • Qualia’s skyscraper • Retail in small cities 15-17

Made in Poland 2013 The latest edition of WBJ ’s annual analysis of Poland’s export markets launches this week 8

In this issue

Pension grab?

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Exports in Focus . . . . . . . . . . . . . . .8 Interview . . . . . . . . . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . .12-13 Opinion & Analysis . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

The government is reviewing Poland’s pension system, and is considering nationalizing the assets of some private funds 5

EAST NEWS

Endless winter Poland’s wintry spring weather has taken its toll on businesses and infrastructure, and could mean floods in the near future

4

NEWS

www.wbj.pl

450% is by how much trade on the natural gas market of the Polish Power Exchange increased in March, compared to February.

211 were the number of bankruptcies of Polish companies in the first quarter of 2013, the highest number since the first quarter of 2005, according to data from Coface.

5:05 pm

Poland’s largest utility PGE has decided to withdraw from its plan to build new units at its Opole power plant. The company said that changes in the energy market and macroeconomic conditions have limited the profitability of the project and that continuing it would not create value for PGE’s shareholders. The contract was worth z∏.9.4 billion. ●

“We should just say: ‘We’re not entering ERM II. If you want us in, invite us without that requirement.’ Is that chutzpah? You bet it is.”

National Bank of Poland head Marek Belka, during a debate last week on the terms of Poland’s eventual entry into the euro zone.

Figures in focus Land of milk and honey How much a hectare of agricultural land costs in selected EU states (in €) 150,000 120,000 90,000 * Highest in EU ** Lowest in EU

Sources: Eurostat, ARiMR

Company index Air France ..........................5 Grupa Capital Park ..........16 Norges ..............................15 Albright Stonebridge Group..13 GTC....................................17

Calendar

April 9-10

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MADE IN POLAND CONFERENCE

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

National Stadium, Al. Poniatowskiego 1, Warsaw

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Parrot ................................23

Allianz ..............................15 H&M ..................................17 Asseco ................................8 Hannover Real Estate ......15 PGE ..........................2, 6, 20 Automatic Labs ................23 Hines ................................15 PKO BP ........................6, 15 B+R Studio ..........................8 HSBC ..............................7, 8 Polpharma ..........................8 Bank Millennium ................6 IBM......................................8 Bank Pekao ......................16 Imtech Polska ..................16 PRC Architekci..................16 BBI Development..............15 Inglot ..................................8

Prologis ............................15

Biedronka..........................16 Invesco ..............................15 Blackstone ........................15 Johnson & Johnson ..........2 PZL Mielec ..........................8 British Airways ..................5 Jones Lang LaSalle..........15 PZL-Âwidnik ......................8 Castorama ........................16 JSW ..................................20 PZU ..................................15 CCC ....................................4 KGHM..................................6 CEPD Management ..........16 Kulczyk Silverstein

APRIL 30-MAY 2 ANNUAL INVESTMENT MEETING Event:

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Russia’s Vladimir Putin has proposed building a new natural gas pipeline through Poland. How could this affect Poland’s relationship with Russia and what would be the geopolitical consequences of such a project, if the Polish government agrees to come on board? Long on to WBJ.pl to read geopolitical analysis firm Stratfor’s take on the issue.

0 ite

The politics of gas

30,000

Un

On WBJ.pl

ce

Remi Adekoya

Quote of the Week

Sw

and the fact that he is running off with his tail between his legs is typical.”

However, Mr Tusk is expected to lay a wreath at the monument to the Smolensk plane crash victims in Warsaw’s Powàzki cemetery early in the morning on April 10, just before his flight. Meanwhile Law and Justice plans to hold demonstrations and prayer meetings, as well as attend special commemorative masses on April 10.

Government ministers and MPs from all parties will be attending some of those masses. Asked who had decided on April 10 for his visit to Nigeria, Mr Tusk said it had been the Nigerian side, adding that the date was “unfortunate.”

60,000

Czech veterinary inspectors confirmed that they found traces of a horse painkiller in Polish horse meat sold in the country. The drug, phenylbutazone, which may be harmful to humans, was found in meat which came from the Polish supplier.

PGE withdraws from Opole project

ident Vladimir Putin.

A Polish investigative commission found the causes of the crash to have been pilot error and negligence on the part of the Russian air-controllers in Smolensk.

This year’s commemorations are set to provide further evidence of the rift the Smolensk catastrophe has created in Poland.

When Donald Tusk announced that he would be making an official trip to Nigeria on April 10, many Law and Justice politicians reacted angrily, accusing the prime minister of everything from cowardice to malice. Joachim Brudziƒski, an MP from the conservative opposition party, said Donald Tusk, “most probably has a guilty conscience

Fra n

April 10, 2013 will mark the third anniversary of the catastrophic plane crash in Smolensk, Russia which claimed the lives of President Lech Kaczyƒski and 95 others, including Poland’s military chiefs and many top politicians. But after briefly uniting the nation in grief, the disaster has since turned into one of the most significant wedge issues in Polish politics.

Jaros∏aw Kaczyƒski, twin brother of the late president and leader of Poland’s biggest opposition party, Law and Justice, has accused Prime Minister Donald Tusk of complicity in Lech Kaczyƒski’s death, openly suggesting that there had been a conspiracy to assassinate his brother involving Mr Tusk and Russia’s pres-

will be the new time for the close of trade on the Warsaw Stock Exchange, starting April 15. Currently, trade closes at 5:35 pm.

lta *

Horse painkiller found in meat from Poland

48.0 was the value of Poland’s manufacturing PMI index in March 2013, its lowest level in five months.

rla

Polish-born Barbara Piasecka-Johnson, one of the world’s richest women, died on April 1.

She was 76. Ms Piasecka-Johnson was the third wife of John Seward Johnson, the son of the founder of Johnson & Johnson, and inherited a large part of his fortune after his death. Her assets were recently valued by Forbes at $3.6 billion.

The third anniversary of the Smolensk disaster

Ma

Billionaire Barbara PiaseckaJohnson dies

Numbers in the News

the

Transport Minister S∏awomir Nowak survived a vote of no confidence last Friday. A motion suggesting his dismissal had been filed by opposition party Solidarna Polska, and supported by Palikot’s Movement and the Democratic Left Alliance, who argued that he is responsible for the poor condition of roads and railways.

IN THE SPOTLIGHT

Ne

Transport Minister survives vote of no-confidence

APRIL 8-14, 2013

SHUTTERSTOCK

2

Colliers........................16, 17 Properties ........................15

Qualia Development ........15 Qumak ..............................16

Comarch ............................8 Kury∏owicz & Associates..15 Cushman & Wakefield......15 Lidl ....................................16 Randstad Polska ..............16 Cyfra+..................................6 LOT ......................................5 Skanska ............................15 Cyfrowy Polsat ....................6 Lufthansa............................5 Tauron ................................6 Elektrim ............................15 Macro Cash & Carry ........16 Enea ....................................6 Marriott ............................15 Tebodin..............................16 Eurolot ................................5 Media Expert ....................16

The Hines Global Reit ......15

EuRoPol Gaz ......................4 Microsoft ............................8 Gaz-System ........................4 “n” ......................................6 Transport Consultants Gazprom..............................4 NAC ..................................21 Group TOR ..........................5 GLL....................................15 nc+ ......................................6 Warsaw Stock Exchange 2, 20 Google ................................8 NEPI ..................................15 Griffin Group ....................16 Nordea Bank ......................6 X-Trade Brokers ..............20

4

NEWS

www.wbj.pl

APRIL 8-14, 2013

Weather

Could April snow showers bring May floods?

The threat of floods in the first weeks of May is looming over southeastern Poland.

Flood warnings have already been issued in towns and villages along the Bug River.

The southeastern voivodships Podkarpackie, Âwi´tokrzyskie and Lubelskie may experience some flooding in the near future, when the snow begins to melt. And thaw is indeed coming, with weather forecasts putting this week’s temperatures in the vicinity of 10 degrees Celsius.

Experts say, however, that there is no reason for worry.

“The winter is indeed snowy, but not frosty. This means there is not much ice on rivers making it difficult for the water to flow,” Artur Magnuszewski, a hydrology professor at the University of Warsaw told TVN24. Mr Magnuszewski also said that neither a sudden warming or intense rainfall are expected

in the coming weeks, which are the biggest threats when it comes to floods.

Transport and infrastructure snowed under The unseasonable weather is also taking its toll on Poland’s infrastructure. During the Easter weekend, the exceptionally wet, heavy snow left some 100,000 Poles without power, when tree branches snapped under the weight and broke several power lines in central Poland.

Hundreds of flights have been canceled or delayed due to poor weather conditions.

Despite deploying 1,100 snowplows, driving conditions in Poland remained difficult. During the Easter weekend, accidents claimed the lives of 16 people and left 232 injured. Local authorities are worried about the

strain the continuing efforts to clear roads is putting on their budgets.

Winter is a dangerous season in Poland, and not only for drivers. According to the Ministry of Internal Affairs, 29 people froze to death in March alone. Since the beginning of the winter season 180 have died of hypothermia and 88 of carbon monoxide poisoning caused by faulty heating installations.

Heavy snow, heavy losses The financial repercussions of the snowy spring go beyond costly road maintenance, though. Clothes and footwear manufacturers are struggling as a result of the long-lasting winter weather.

At a time when they usually earn more on new spring collections, they now have lower turnover and lower margins.

Piotr Nowjalis, deputy CEO at shoe retailer CCC, told business daily Parkiet that this year’s March sales value was 20 percent lower than

SHUTTERSTOCK

The unusually long and snowy winter has already wreaked havoc, causing power outages, road collisions and incurring heavy losses for the Polish economy

The wintry conditions made holiday driving especially treacherous last year’s.

The entire economy is experiencing a protracted slowdown due to the unfavorable and harsh weather conditions. With seasonal work delayed, one should not expect unemployment to fall in March, as it usually does.

The jobless rate is expected to start declining in April, though, deputy Labor Minister Jacek M´cina said.

The unseasonably wintry weather in the beginning of April is highly unusual, but nevertheless has frustrated Poles who are anxious for

spring to begin.

“Our climate and our weather are very varied,” Mr Magnuszewski told TVN24, adding that there is no reason to expect that this kind of weather will become commonplace in the future.

Beata Socha

Pipelines

International

Russia moots new gas line through Poland

Idle threats of an idle dictator?

Confusion arose last Wednesday after media reported that Russian President Vladimir Putin had ordered stateowned gas distributor Gazprom to consider building another section of the Yamal natural gas pipeline that would go through Polish territory, bypassing Ukraine. Gazprom’s CEO Alexei Miller said that the new part of the pipeline could be in operation by as early as 2018.

The Polish government seemed taken aback by the news.

Treasury Minister Miko∏aj Budzanowski criticized the proposal, and stressed that any decision on whether a new pipeline would go through Poland was solely the purview of the Polish government.

“No one, except for the Polish company and the Polish government, is entitled to make decisions about transit via Polish territory,” he said.

However, Deputy Prime Minister and Economy Minis-

ter Janusz Piechociƒski told Polish Radio on Thursday that Poland could benefit from such a deal.

Then on Friday, before the government could articulate a coherent position, Mr Miller and the Polish CEO of Russian-Polish pipeline operator EuRoPol Gaz, Miros∏aw Dobrut, signed a memorandum stating that the two parties would jointly asses whether a new gas line running through Poland’s territory was technically and economically feasible.

Polish politicians were unwilling to make any public statements until the situation had been clarified, with even Prime Minister Tusk refusing to address the issue. It took government representatives the better part of Friday to get their story straight.

Polish Treasury Minister Miko∏aj Budzanowski said at a long-awaited press conference that no formal agreement had been entered into and added that the memorandum between EuRoPol Gaz and Gazprom “is clearly technical in nature and only pertains to a transfer of information.”

Just a pawn?

The announcement of the new pipeline came only two days after Ukrainian Energy and Coal Industry Ministry stated that Ukraine had not broken any laws by progressively decreasing its gas purchases from Russia while increasing them from Hungary. That issue is only one of several bones of contention in a lengthy Russian-Ukrainian dispute over gas quotas and payments. Analysts believe that Mr Putin’s proposal was a veiled threat to Kiev that Moscow could still deliver gas to customers while cutting off the taps in Ukraine.

But the Polish government was reluctant to cooperate with Russia’s apparent strongarm tactics. “Poland will not participate in such political games, for us gas is not a political instrument and we really want, as per EU regulations, to keep gas issues free from politicking,” Polish Prime Minister Donald Tusk said Friday afternoon.

Beata Socha, Kamila Wajszczuk

Last week’s news was dominated by reports of North Korean saber-rattling and the country’s preparations to go to war with its southern neighbor. And while the US continues to send troops and equipment to the Korean peninsula, experts agree that Pyongyang’s moves are little more than propaganda.

Nevertheless, the rising tensions have sparked fears of a war on the Korean peninsula, or an even wider conflict.

And the rhetoric coming out of North Korea is at its most bellicose in years.

A statement posted on the website of the North Korean embassy in Poland reads, “Kim Jong-un has made a decision to declare a life-anddeath battle that will ensure an epoch-making opportunity to put an end to an ongoing clash with the US, and to start a new era. This is the final warning to the US and South Korea.”

When asked by a reporter

SHUTTERSTOCK

The Polish government says it won’t play Russia’s “political games”

As Pyongyang rattles its sabers, Poland encourages North Korea to “abstain from provocative moves”

The increasingly bellicose rhetoric coming out of North Korea has the world on edge from TVN24 to comment on the statement, one of the employees of the embassy said that Pyongyang was only responding to “aggressive attacks” from the “other side.”

“We haven’t declared war, our actions are merely preemptive,” the unnamed source form the embassy said. The source concluded the statement, however, with the ominous: “We’re ready to counterattack.”

Polish diplomats to stay in Pyongyang, for now The Polish Ministry of Foreign Affairs claims there is no need to evacuate Poland’s embassy in North Korea. The ministry’s

press officer, Marcin Bosacki, said that evacuation may be considered if the situation gets worse, though.

Mr Bosacki also confirmed that there are currently no Polish citizens in North Korea apart from the embassy staff.

Only one other Pole lives in the country, but he is currently staying in Poland, Mr Bosacki explained.

Mr Bosacki also added that “the Ministry of Foreign Affairs appeals to Pyongyang to abstain from drastic and provocative moves. We ask [North Korea] to return to peace talks and comply with binding UN resolutions.”

Jacek Ciesnowski

BUSINESS

APRIL 8-14, 2013

Airlines

www.wbj.pl

5

Pension funds

Treasury prepares to sell LOT Government considering

pension-fund asset-grab

One expert says British Airways could be the frontrunner to acquire the troubled Polish airline

COURTESY OF LOT

Poland’s government has adopted a draft law that is meant to pave the way for the privatization of the country’s national air carrier, LOT Polish Airlines. The new regulation will enable the State Treasury to sell a majority stake, while under current legislation it is obliged to keep a 51 percent share in the airline.

LOT’s privatization is part of a deep restructuring process in the company, Treasury Minister Miko∏aj Budzanowski said last week. Offering a majority stake will give the Treasury the option of selling LOT to a stable, strategic investor, he added.

Polish law is not the only obstacle to selling the national air carrier. According to EU law, at least 50 percent of any European airline must be owned by an EU member state, or a citizen thereof.

That, however, likely won’t be a problem. “I expect that one of the big three European airlines (British Airways, Lufthansa and Air France) will

The government is reviewing a revamp of Poland’s pension system that could eventually see private pension funds nationalized

Soon to be sold? buy LOT. This would make more sense from an economic standpoint,” Adrian Furgalski, from Transport Consultants Group TOR, told WBJ. He added that in his view, British Airways is the frontrunner. “They were already considering buying LOT two years ago, and now finally they will have a legal framework in place to do so.”

First the sale, and then what?

The sale will be possible after a drastic rescue plan for LOT is implemented, cutting hundreds of jobs and offloading some of the airline’s planes.

“Only when the company is in better shape will there be any potential buyer interested in the acquisition,” explained Mr Furgalski.

“But even when we do sell, we have to realize that the Treasury won’t be able to get too much money from the sale. We really should be happy that the brand LOT will continue to exist after the sale,” Mr Furgalski continued.

If another airline buys LOT, experts assume it will incorporate international routes operated by LOT into its own flight network, while domestic flights will still be carried out by a smaller Polish carrier, Eurolot, owned by LOT and the Treasury.

The Treasury wants to buy out LOT’s stake in Eurolot, which would help secure the necessary funds to keep LOT afloat, and then sell it in a package deal along with LOT. Jacek Ciesnowski

Media reports suggesting that the government is considering shifting roughly z∏.125 billion in treasury bonds held by private pension funds (OFEs) to the state budget has sparked an outcry and speculation that the government may be considering getting rid of OFEs altogether. Poland’s pension system combines a state-controlled pay-as-you-go component with state-guaranteed OFEs that receive part of employees’ pension contributions each month.

The government has taken aim at OFEs to shore up the budget before. In 2011, it cut the share of employees’ contributions to OFEs to 2.3 percent of gross wages from 7.3 percent. This year, the transfers rose to 2.8 percent of wages, but this is still less than half the previ-

ous share.

Diverting the treasurybond holdings into the budget would reduce public debt and lower Poland’s annual debt-servicing costs. Finance Minister Jacek Rostowski has pledged that by 2015 Poland will bring down its public debt to 50 percent of GDP. After the third quarter of 2012, that figure stood at 55.9 percent, according to Eurostat.

No doctrine Daily Gazeta Wyborcza, quoting an anonymous government official, said Prime Minister Donald Tusk’s government is currently considering further cutting the share of salaries transferred to OFEs. Moreover, in the future, OFEs might be restricted to investing their funds solely in stocks, according to the reports. In response, the prime minister acknowledged that the pension system is being “reviewed” at the moment.

“We will analyze the conclusions drawn from that review, as well as the proposals of experts and politicians

regarding the future of OFEs,” said Mr Tusk. “We have no doctrine. There is no secret plan to liquidate OFEs, nor is there a doctrine that says OFEs must remain at all costs,” he added.

The PM said that the government would present its proposals on the future of Poland’s pension system in May.

A misunderstanding Commenting on the issue, Deputy PM and Finance Minister Jacek Rostowski insisted the government does not have plans to do away with private pension funds. However, he also responded angrily to a recent proposal from OFE representatives suggesting the pension-payment period be reduced to 10 years, instead of for the remainder of a pensioner’s lifetime, as is the case currently.

“Life-long pensions will be paid from the funds that OFEs have accumulated in their accounts over the last 15 years,” said Mr Rostowski, calling the proposal a “misunderstanding.”

Remi Adekoya

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BUSINESS

www.wbj.pl

APRIL 8-14, 2013

Nuclear energy

The wait continues on Poland’s nuclear power program Another deadline – this one for agreeing on terms for a consortium to fund construction – has passed with no progress Over six months have passed since the state-run energy firms PGE, Tauron and Enea, as well as state-owned mining giant KGHM, signed a letter of intent to buy into PGE EJ 1, a company established for the purpose of building a nuclear facility in Poland. The date for the signing of an agreement –

the second after the first deadline was missed – passed again in March, with no deal. As of press time, no new deadline had been set.

While it is known that PGE, Poland’s largest electricity producer, will hold the majority share, how much each of the other state-owned giants will own is still unknown.

Poland’s nuclear powerplant project has faced difficulties from its outset. Originally planned to come online fully in 2020, the date that has now been officially set for the first of two plants to begin

operations is 2023. That plant is set to come fully online in 2025, with a generation capacity of 3,000 megawatts. A second plant of roughly the same capacity is planned to come online by 2029.

The biggest issue holding up the program is its cost. Last year PGE chief executive Krzysztof Kilian said publicly that Poland would have to choose between investing in nuclear power or in shale gas.

In February, Treasury Minister Miko∏aj Budzanowski said that constructing a nuclear plant might be too costly for Poland, especially in view of

Support for nuclear?

It’s unclear how much support the project has among the Polish populace. While Poles certainly favor nuclear power more than some of their Western European counterparts, an April 2011 poll (just after Japan’s Fukushima disaster) found 53 percent of Poles were opposed. However, in December last year, a government-funded poll during a nuclear power promotion campaign found that 56 percent of Poles were in favor.

The residents of Mielno, which is located close to the Baltic coast town of Gàski, one of the proposed sites for the first nuclear power

plant, held a referendum on the subject.

Ninety-four percent of residents voted against hosting the plant. ˚arnowiec and Choczewo, also on the Baltic Sea, are the other two shortlisted locations. Support for construction is said to be higher in these towns, especially in ˚arnowiec, where another nuclear power plant was due to be built under the communist regime. Those plans were discarded after the Chernobyl disaster.

A decision on where the plant will be built could take as long as two years. ●

the economic slowdown.

Thereafter, Prime Minister Tusk held a meeting with Mr Kilian to discuss the future of the program. “Poland is by no means abandoning plans to build a nuclear power plant,” said Mr Tusk after the meeting, rebutting rumors that the program might be suspended.

“We expect government agencies and PGE to come up with a responsible solution that will allow Poland to take advantage of the safest and most cutting-edge nuclear technology,” he added.

But precisely how much the program will cost is an open question. Estimates for the first plant vary between z∏.35 billion and z∏.60 billion (about €9 billion-€15 billion).

PGE was due to hold a tender for the construction and delivery of the plant by the end of March as well. That was a deadline that had also been pushed back, originally from the first quarter of 2012. It is not known when PGE will hold the tender, but it will likely have to sign the consortium agreement with the other state-owned firms first.

Jacek Ciesnowski

PKO BP eyes takeovers in Central Europe

COURTESY OF PKO BP

6

PKO BP headquarters in Warsaw Poland’s largest bank PKO BP is looking for takeovers, if not in Poland then within the region, the bank’s CEO, Zbigniew Jagie∏∏o, said at a press conference last week.

“There are several foreign entities that will be interested in exiting, or will be forced to exit, the market,” he said.

The bank listed acquisitions as one of the goals of its development strategy for 2013-2015. It plans to reserve capital and monitor the market for potential targets. PKO is interested in buying small

and medium-sized banks, and has reportedly been in the running to buy Nordea Bank’s Polish arm, and Bank Millennium, the Polish outfit of Portuguese bank Millennium bcp.

Much of the lender’s strategy is also focused on organic growth and improving customer service. The lender wants its assets to grow by 4-5 percent annually. PKO also said its targeted return-onequity is above 15 percent and cost-to-income ratio below 45 percent.

KW, AK

Media

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A merger of two satellite TV operators was supposed to bring viewers the best programming from both. Instead, it sparked an outcry from subscribers When the merger of satellite platforms Cyfra+ and “n” was announced back in November 2011, officials hailed the expanded offer of sports and movies that the new platform would provide.

Eighteen months later, after waiting for regulators to approve the deal and discussions on how it would operate, the new platform – dubbed “nc+” – was launched.

But the claims of “the best sport and cinema on Polish market,” haven’t convinced a large number of subscribers from both platforms. Many were unimpressed, and even angry, at the new channel offer and pricing policy. In both the Cyfra+ and “n” platforms, viewers were able to buy special packages with premium channels for z∏.20-

40 per month. But in nc+, a comparable package costs more than double that. The “CANAL+ Silver” package, for example, comes to a total of z∏.109 monthly.

The vociferous protests forced nc+ officials into damage-control mode, but it was too little too late. A Facebook page protesting the changes (“Anty NC+”) quickly gathered nearly 70,000 likes. The president of nc+, Julien Verley, invited the creator of the page, Dawid Zieliƒski, to discuss the issues protesters have with the new platform. Mr Zieliƒski declined the offer, but sent a long list of questions, demands and suggestions.

A few top nc+ executives even lost their jobs over the furor. Some of these apparently left of their own volition, in protest against the company’s “aggressive approach” towards existing customers, several Polish media reported unnamed sources inside the company as saying.

This “aggressive approach” got the attention of Poland’s consumer and com-

COURTESY OF FACEBOOK.COM/ANTYNCPLUS

New satellite platform earns ire of subscribers

The “Anty NC+” page on Facebook quickly gathered 70,000 likes petition regulator, UOKIK, which has said it will investigate the matter.

“After preliminary analysis we are concerned with actions to change existing agreements in a one-sided fashion, and automatically replacing existing Cyfra+ and ‘n’ contracts with new ones,” the regulator said in a statement. If found in violation of consumer protection laws, the company could be fined as much as 10 percent of last year’s revenue.

Cyfra+ and “n” together have 2.5 million subscribers.

Market leader Cyfrowy Polsat has over 3.5 million subscribers.

Jacek Ciesnowski

FINANCE & ECONOMICS

APRIL 8-14, 2013

www.wbj.pl

7

Euro zone

The NBP president said Poland needs the “chutzpah” to demand it be allowed in without the criterion President of the National Bank of Poland Marek Belka said last week that Poland should try to convince EU leaders to allow it to join the euro zone without the

PMI lowest in five months The Purchasing Managers’ Index (PMI) for Poland’s manufacturing sector fell to 48 points from 48.9 points in February, reaching its lowest level in five months, HSBC said in a statement on Tuesday.

The decline in PMI is an indication of a prolonged downturn in the Polish industry.

HSBC economist Agata Urbaƒska said that the result was disappointing and “highlights that the bottoming out of the 2012 slowdown continues to be questionable not mentioning that it undermines chances for a firm recovery through 2013.”

“The number of new orders received by Polish manufacturers fell for the fourteenth consecutive month in March. ... The pace of decline in new export orders was the fastest since November,” HSBC said in the report.

The volume of production slid for the 11th month in a row and at the fastest pace since November amid reduced orders, with the pace of price reduction accelerating to a historic high.

Production costs fell for the seventh time in the last nine months, at the fastest pace since June 2009, the report authors added.

“The level of employment in the production sector contracted for the seventh month in a row in March, making it the longest decline period in over three years. Producers reduced the purchases capital goods at the fastest pace since September 2012,” HSBC said.

A PMI reading above 50 indicates expansion in the sector, while one below 50 signals contraction.

AS, KW

required two-year membership in the ERM II. “I think we should publicly speak about this being a very serious barrier that could prevent a country such as Poland from joining the euro zone,” he said.

Poland has a large currency market, he explained, so it should be able to say it does not want to join the exchangerate mechanism.

“We have a big currency market and we should just say: ‘We’re not entering ERM II. If you want us in, invite us without that requirement.’ Is that chutzpah? You bet it is.”

Mr Belka said.

Mr Belka added that the ERM II is unfavorable for Poland, since it paves the way for currency “speculation.”

He said that he understands that the criteria are part of a

treaty but that he believes there could be some flexibility.

The ERM II is known as the euro’s “waiting room.” It is a mechanism by which a country’s currency is monitored for two years during which it is not allowed to break certain thresholds, with the aim of ensuring a stable exchange rate.

KW

COURTESY OF THE NBP

Belka suggests Poland should adopt euro without ERM II

Mr Belka said that the ERM II could invite “speculation”

8

EXPORTS IN FOCUS

www.wbj.pl

APRIL 8-14, 2013

Trade

Polish exports broke another record in 2012. What makes the country’s products so successful abroad?

Though painful and costly, the global economic crisis may have been a blessing in disguise for Polish exporters. In the period between 2008-2012, the value of Polish exports increased by 22 percent, or €25.7 billion. Last year alone Poland exported nearly €142 billion worth of products, according to preliminary data compiled by Poland’s statistics office, a record high and an increase of 6.9 percent y/y.

Poland’s most popular export sectors include: food (exports of which rose by 14.8 percent y/y), ceramics (12.4 percent), minerals (5.4 percent) and chemicals (4.9 percent), although when it comes to value, the electrical machinery sector is by far the leader, with some €55 billion worth of products exported in 2012.

That leaves chemicals (€19.8 billion), foodstuffs (€17.5 billion) and metallurgy (€16.6 billion) far behind.

Looking in a different direction The euro zone crisis has forced Polish exporters to find alternative markets. The value of goods sold to the EU has

decreased by 0.9 percent, although it’s still by far the biggest export destination with €107.5 billion worth of products being sold there in 2012.

Nevertheless, Polish exporters are hoping new markets can help make up the difference.

Exports to developing and less-developed countries, while still small compared to exports to developed markets, rose by 19 percent and reached €25.5 billion. Russia is the driving force among these countries, with €8 billion worth of Polish goods exported there.

Additionally, Poland’s Ministry of Economy has selected five potential destination markets for Polish products: Canada, Brazil, Algeria, Kazakhstan and Turkey.

“Right now, these countries account for 2 percent of Polish exports, and with their big potential, macroeconomic stability and huge markets, they can become major destinations for Polish export,” the ministry wrote in a statement.

According to forecasts by HSBC and Oxford Economics, Asia will see an increase in Polish products. In 2013-2015 exports to India, Vietnam and South Korea should increase annually by 21, 18 and 17 percent respectively, and will continue to grow even further in later years.

SHUTTERSTOCK

Poland driven by exports

Polish food is becoming increasingly popular abroad But despite all the change in economies worldwide, and in the EU in particular, Germany remains the country that imports the most from Poland – €35.7 billion of goods was exported there (the same value as the year before), while the United Kingdom (€9.6 billion) overtook the Czech Republic (€ 8.9 billion) for second place on the list.

Price to quality ratio What’s behind the success of Polish exports? Buyers take two factors into account when making a purchase: price and quality. And Polish products

can boast excellent value for money, thus winning a sizable chunk of global demand.

Undercutting competition with lower prices is a doubleedged sword, though. Polish exporters have a clear competitive advantage in the form of lower labor costs (an hour of labor in Poland costs on average €7.20, while the EU average is €23.20, according to the EU’s statistics agency Eurostat), and can offer lower prices, thus selling a far greater volume of products.

But this does not translate into an equal increase in the total value of exports.

The furniture sector is a good example here. In terms of volume, Poland is the second-largest exporter in the

world, selling 2.7 million metric tons of its furniture abroad (China is the undisputed leader with nearly 15 million tons), but in terms of value, it falls behind Germany and Italy.

The reason is simple: for every 100 kilograms of furniture exported, German and Italian companies receive €500-600 while Polish exporters only receive half that, according to estimates prepared by market research firm B+R Studio.

The Ministry of Economy projects that in 2013, the value of Polish exports will rise by 2 percent (to €144.8 billion), although other experts are more optimistic in their forecasts. HSBC predicts a 5.8 percent increase, while the Export Credit Insurance Corporation expects an 8 percent spike.

Jacek Ciesnowski

Big five customers Poland’s top five export destinations, by value of exported goods (in € billions) Country

2012

Change y/y

1. Germany

35.7

0%

2. United Kingdom

9.6

8.5%

3. Czech Republic

8.9

4.4%

4. France

8.3

-1.2%

5. Russia

7.7

25.2% Source: Central Statistical Office

Exports

Made in Poland focuses on innovative exporters Poland’s exporters are growing in both strength and sophistication The phrases “hi-tech,” “innovative” and “state-of-the-art” weren’t often mentioned in the same breath as “Polish economy” until recently. But that is changing, and rapidly.

For years now Poland has had a strong stable of young, world-leading programmers and computer specialists, but it was understood that they were being hired off by the likes of huge global tech companies that were investing in Poland, such as Google, Microsoft or IBM. Perhaps some went to large Polish IT firms like Asseco or Comarch.

They were something to be proud of, but few predicted that they would become the foundation for an entrepreneurial explosion.

To be fair, Poland still places low in innovation rankings. the European Commission has just released a report putting Poland fourth-lowest

in the European Union in terms of innovativeness.

But that belies a small but growing group of hi-tech firms that Poles are starting up.

Poland’s growing strength in this field was on full display at CeBIT 2013 in Germany, where Poland was the “Partner Country.” From ERP software

to video games to cloud computing, Polish firms made – and are making – their mark.

The trend is spilling over into Poland’s export sectors as well, which is why in our third annual edition of Made in Poland, which launches at a special conference dedicated to exports this week, we have a special report on research and development in Poland.

Poles have come up with some innovations that will have global applications – and money being spent on R&D is on the rise too, a welcome development.

Poland’s export sectors are leaders in R&D – from developments in cosmetics to mining machinery to pharmaceuticals to aviation, Polish firms are producing state-of-the-art products at lower prices than

their Western counterparts, putting them in prime position to find new markets and increase market share in those in which they are already present.

Take cosmetics producer Inglot, for example. The home-grown firm recently developed a type of nail polish that “breathes,” allowing water underneath while maintaining its color. While some might not find that particularly remarkable, it was a boon to Muslim women, who are required to wash their arms and hands – including their nails – before daily prayers.

Muslim scholars have since endorsed Inglot’s nail polish as permissible.

Then there is Polpharma, which recently won the award for “Most Innovative Product” from the Polish Academy of Sciences for its innovative technologies used in producing osteoporosis drugs. Not only do the innovations make the drugs cheaper to produce and safer for the patient, they also allow for significantly

more environmentally friendly production.

In Aviation, PZL-Âwidnik and PZL Mielec produce cutting-edge helicopters that serve the most demanding civilian and military customers. The list goes on, but you can read more about how Polish exports are becoming more hi-tech and sophisticated in the sector analyses found in the pages of Made in Poland.

For foreign firms considering importing Polish products or cooperating with Polish firms, Made in Poland provides some other resources: a list of Poland’s largest exporters and contact details to government agencies that aid importers and foreign businesses.

There’s also a bevy of analysis from our partners at Poland’s various chambers of commerce and institutions that work with exporters, including patent attorneys offices and development agencies. We hope that these serve foreign firms well in their search for a Polish business partner.

As part of its mission, the Warsaw Business Journal Group – which comprises Made in Poland, the flagship weekly Warsaw Business Journal and several other publications – supports Polish exports.

For that reason, we continue to publish Made in Poland, which has been welcomed in the market to no little success.

Exporters and government agencies alike have found the publication useful in their promotion activities. We also continue to hold a conference each year dedicated to exploring the issues facing Polish exporters.

Bigger, stronger, but also more sophisticated and research-oriented – Polish exporters continue to prove their value to the Polish economy.

Pick up your own copy of Made in Poland, or visit WBJ.pl to download the PDF; we’re sure it will prove their value to your business as well.

Andrew Kureth Editor-in-Chief Warsaw Business Journal

10

INTERVIEW

www.wbj.pl

APRIL 8-14, 2013

Politics

Building a new center-left Ewa Boniecka: What made Aleksander KwaÊniewski return to active politics and announce he will be establishing Europe Plus with you and Janusz Palikot?

Marek Siwiec: Our political scene is rigid. The ruling Civic

“People’s expectations for a center-left formation are bigger than we had anticipated.”

Platform is totally focused on itself and on its confrontation with the opposition Law and Justice. So Aleksander KwaÊniewski decided it was high time to build a strong center-left formation in Poland as the alternative to the governing parliamentary majority and the domination of right-wing parties.

We both strongly believe that there is room for a modern, center-left party in Poland but until now that potential has not been exploited. The first step in building cooperation between existing leftist parties, leftist political groups and feminist organizations is preparing a common electoral list of leftist candidates for elections to the European Parliament in 2014.

But Democratic Left Alliance leader Leszek Miller has rejected the invitation to such cooperation because of Janusz Palikot’s involvement. What’s your next move?

Poland should send a strong representation of people to the EP – people who can have a say in decisions made there – and we would like to invite such people to join our electoral list. The fact is that when Leszek Miller rejected our proposal to build one leftist voting list, it created an obsta-

COURTESY OF FACEBOOK/MAREK SIWIEC

WBJ sat down to discuss politics with Marek Siwiec, an MEP who is currently building a new center-left political initiative, Europe Plus, under the leadership of Aleksander KwaÊniewski, former president of Poland

Marek Siwiec believes Poland’s political scene is “too rigid” cle to our plans.

But I think that some members of his party would like to see that decision changed. It was an unwise one, because it is evident that one leftist electoral list would gain more support from voters than separate lists.

The Democratic Left Alliance can join Europe Plus at any time and I think that discussions within that party about joining us will go on, so the matter is not closed yet.

The party hasn’t enjoyed much support in recent years, while

Palikot’s Movement entered the Sejm with over 40 MPs. Some 1.5 million people voted for Mr Palikot’s party.

It seems that building Europe Plus may prove very difficult considering the current war

within the left. Besides, Mr KwaÊniewski hasn’t declared yet that he will be running for the European Parliament himself...

I wouldn’t say we have a war on the left. It is in my view a heated confrontation with

INTERVIEW

COURTESY OF MAREK SIWIEC

APRIL 8-14, 2013

Mr Siwiec says the new grouping could eventually become a domestic political party Leszek Miller’s party, but I agree that it makes our efforts more difficult. And the thing that is most troubling is that Mr Miller does not understand that the left needs some fresh air and credibility to attract voters and that by joining our project, the Democratic Left Alliance will open up to new people with leftist and liberal views and that together we can offer a real alternative to right-wing parties. Otherwise, his party will remain stagnant.

expectations of minorities.

The same challenges face Poland’s leftist politicians.

Europe Plus is our response to those challenges, through supporting deeper integration within the EU, promoting more solidarity in fighting with crises and by making EU mechanisms function more democratically. If we send a strong and numerous leftist representation to the European Parliament, it will increase Poland’s role in shaping European policies.

A prominent feminist organization, The Congress of Women, has taken offense with Mr Palikot for his treatment of women. They are not supporting you as of now, so how do you bring key players like that around?

We’ve guaranteed women 50 percent of the places on our electoral list and I am certain that those female activists looking for a better future in Poland and Europe will support our initiative, in due time.

Let’s look at leftist parties in the West. They are changing, they are looking for new ideas and proposals, especially in a time of crisis and changes in the EU architecture. They have to redefine some of their approaches to economic, financial and social matters in order to deal with unemployment, frustration among EU citizens and also meet the

But the average Pole is probably more interested in domestic problems than in Europe.

So what can you offer them, other than the voting list?

I have had many meetings with people all over Poland and I am very often asked about our position on domestic issues. People’s expectations for a center-left formation are bigger than we had anticipated.

So we have thought about creating a new political party, a “Poland Plus” if you will, akin to Europe Plus and what it stands for. When the first step of building a center-left list is successful, we will work on establishing a party with an equally comprehensive program, far from populism.

We are sensitive towards social needs, but in order to provide state support to those who need it and to run an

Marek Siwiec Marek Siwiec was born in 1955 in the Silesia voivodship. He joined the communist party in 1977 and was a member until communism’s collapse in Poland. From 1997 to 2004, he served as head of the Polish National Security Bureau under thenPresident Aleksander KwaÊniewski, also a former communist party member.

Mr Siwiec was elected an MEP in 2004 and kept his

seat after the 2009 European parliamentary elections. From 2011 to 2012, he was deputy leader of the Democratic Left Alliance, but has since left the party to join Europe Plus, a new center-left political initiative that he is leading in partnership with Mr KwaÊniewski and Janusz Palikot, the leader of the anti-clerical Palikot’s Movement party. ●

effective social policy, the economy has to be effective.

Leftist parties acknowledge that economic results are also based on providing favorable conditions for SMEs and not only for big corporations.

It is still an open question whether Aleksander KwaÊniewski will lead such a party officially, isn’t it?

It is for President KwaÊniewski to decide about his final political involvement, but it is he who will shape the list of candidates for the European Parliament. In a couple of weeks we will know more about his own plans.

Now it is too early to talk about names on the list or his decision concerning his personal involvement in the elections or in building the center-left party.

If Europe Plus is established, would Mr Palikot give up his party’s name – Palikot’s Movement – and make it part of Europe Plus?

Palikot’s Movement is an independent party that has significant representation in parliament and it will be Mr Palikot who will have to answer that question in due time. The name of his party and its brand are important, but it has to be treated realistically when it comes to political changes and new circumstances. Parties in Poland and in Europe have sometimes changed their names as the political scene changed. And certainly when Europe Plus is transformed into a center-left party, it will mean significant changes on our present political scene.

Do you envisage a situation whereby Europe Plus could enter into a coalition with the ruling Civic Platform?

If, after the 2015 parliamentary elections, our party has significant political capital, maybe it could be taken into consideration. For now all we can do is speculate. ●

www.wbj.pl

11

12

COVER STORY

www.wbj.pl

APRIL 8-14, 2013

Exclusive interview

Fischer: Germany ‘doesn’t know how’ to lead Europe Remi Adekoya: What is your opinion on the current situation in Cyprus in view of the German role leading up to the whole mess? What could be the consequences of the Cyprus case for Europe as a whole?

Joschka Fischer: For me, it seemed there was and is a lot of German, Austrian and Finnish domestic politics involved in the Cyprus issue. With its huge financial system made up of largely Russian money and all those rumors about moneylaundering, Cyprus is not all that popular in those countries I mentioned. It’s extremely unpopular in the parties of Ms Merkel and her center-right coalition partner. I think the current Cyprus agreement is driven by all these factors.

I am concerned there might be negative consequences of this affair in the whole euro zone, not only in the crisis-hit countries. Investors and regular folks with savings could lose trust in the banking and financial system and the consequences of such a loss of trust could be very unpleasant in the medium- to long-term future.

I understand the frustration of many in Europe regarding Cyprus, but the issue at stake here is the future of the euro zone. Trust is essential to calm the situation and anything that could lead to a re-emergence of the crisis should be avoided. I was shocked that the European financial leadership and the president of the World Bank had failed to foresee the negative reactions of Cypriots to the idea of seizing their bank deposits. That smacked of amateurism.

There are two levels of trust at issue here: one is investors’ trust in governments and the other is citizens’ trust in eurocrats. Which are you referring to?

But finance ministers are not eurocrats, they are members of national governments. That should not be forgotten.

True, but nowadays they are about as popular as the eurocrats who are regularly bashed for their perceived excessive bureaucracy and big-spending

ways, aren’t they?

That’s true, but that perception about a big-spending European bureaucracy is completely false.

EU bureaucracy is smaller than the bureaucracy in Munich.

But how can we change the perception of fat-cat eurocrats spending taxpayers’ money?

I think in Europe, as in the United States, it will always be part of the reality that people blame the center for everything that goes wrong. In the US, people blame Washington and the Beltway for all the problems America has.

As Europe becomes more politically integrated, the blame will increasingly be placed on Brussels for all that is wrong.

“Vote for me and I will clean up the mess in Brussels,” is already a common political pitch. These sentiments will not go away.

On the other hand, the construct of the present euro zone is an element which should be reconsidered. Take for example, the relationship between nation states and the EU. There is a federalist element in the construct but it is not welldesigned. Member-state governments are very powerful and possess veto rights, but national parliaments have less of a say.

This increases the conviction of EU citizens that Europe is governed by a technocracy, because governments play the blame game. They are the real power in the EU but at home they say “Oh, look at crazy Europe.” The Polish government is guilty of this as well. I know they want to avoid the anger and blame of their people so they act powerless against Europe at home and then flex their veto power in Brussels.

This a dangerous game.

So what kind of changes do you propose to Europe’s construct?

Today, the European Parliament plays an important role, but does not have the key powers needed to control the crisis.

This remains in the hands of national governments. It would be helpful to give national parliaments, in the context of their role within Europe, an institutional role. I am strongly in favor of considering a Euro

Chamber with representatives of national parliaments. It would have a majority and a minority likewise and could be very helpful with thorny issues such as those regarding budgets.

I think it would be helpful if the creditors and debtors negotiated directly and then prepared decisions. This would also get national media outlets and people more interested.

People criticize their elected national politicians a lot, but those same politicians still have more legitimacy in citizens’ eyes than bureaucrats in Brussels, for instance. More trust is needed in Europe today.

In November 2011 Foreign Minister Rados∏aw Sikorski made a speech in Berlin where he suggested a European federation under German leadership. What is your take on that as a German?

No, that won’t work. I agree with Mr Sikorski that Germany should be more in the lead but I doubt that will happen.

Why not?

Because we don’t know how to do it.

Don’t know or are afraid people will start making WWII analogies?

That is also an element, but it’s even deeper than that. The German psyche is really structured by the past. We not only burned our fingers but we almost burned ourselves not to mention all the innocent victims in other countries.

This is deeply rooted in the

SHUTTERSTOCK

WBJ sat down with former vice chancellor and foreign minister of Germany, Joschka Fischer, to discuss the German point of view on the crisis in Europe, the lack of democratic legitimacy EU institutions are suffering from today and what Europe’s biggest economy needs to do to keep the European dream alive

Former German Foreign Minister Joschka Fischer worries that events in Cyprus could undermine trust in financial institutions across the EU realistic self-perception that we are not the best at doing that.

Henry Kissinger, I was told, said recently that if the French had the economic power of the Germans, the euro zone crisis would have been fixed. And I add to this that if the Brits were in the euro zone, they would have handled the issues maybe

“Europe is the most important factor for the well-being of a democratic Germany.”

German psyche, be it on the left or on the right. It’s there whether you like it or not. I myself am happy it’s not been forgotten and is defining our identity even amongst the new generation. The memory is not disappearing, that’s good. I say that as a German because it’s very important for us but it’s also very important for Europe and I think the excellent relations that we have, for instance, with Poland today are proof of the positive elements of keeping that memory alive. But in a nutshell, we are reluctant to engage.

And to lead?

And to lead because there is a

even better than the French.

In our collective psyche, we Germans are not designed for such a role. The Germans are as old as the Poles as a nation, more or less 1,000 years old now. But politically, we are a pretty young state. It all started in 1871, before which there was no one united Germany but 10 different Germanys. So it started in 1871 and ended in 1945 in unbelievable disaster. So politically, it’s not an old country.

France and Poland were united much earlier and played a much stronger role in earlier European history. The old Polish state was a European power.

But even smaller states like

Sweden, Denmark or the Netherlands have older political traditions and identities than we do.

Are you saying that even if Angela Merkel was to arrive at the conclusion that without German leadership, Europe cannot move forward, she still wouldn’t be able to effect that leadership?

No, that’s a different scenario. I was in the government and we had to make very tough decisions such as getting the consent of the majority to send troops to Kosovo. You had to make the case and you had to create a majority, which we did.

It’s doable, not easy but doable.

I am not telling you that it’s impossible to convince the Germans and make the move in that direction, but Angela Merkel doesn’t have the courage. She is obviously a great tactician but I don’t believe she’s a great strategist. You need a certain vision that you believe in, a direction in which you want to lead. Direction is the most important element.

Angela Merkel said Germany would do everything to defend the euro but since then she’s not been consistent.

Always, she’s half or a quarter of an hour late and these late solutions are expensive. She is risking a very severe crisis of trust and legitimacy.

Because as long as the solutions are delayed, the more you have to rely on the European Central Bank and other back doors. Rather, she should say to the German people: “This is the direction we will go now and I will fight for this. My destiny as a Chancellor depends on whether I succeed in this or not.”

That’s the stuff people want to hear in a democracy and then they start scratching their heads and discussing with each other and you have the opportunity to convince them.

If Ms Merkel lacks vision, why then is she so popular with German voters?

Because Germany is economically strong. It’s very simple, it is not the chancellor who is strong, but the country which is strong. There is no crisis in Germany today and that helps when you are in power. Poland too is doing well today.

Yes, but the Polish prime minister of six years now, Donald

COVER STORY

SHUTTERSTOCK

APRIL 8-14, 2013

Despite differences in their approach to Russia, both Germany and Poland realize that the independence of Ukraine is the “cornerstone for the new post-Soviet order in Europe,” says Mr Fischer Tusk, is nowhere near as popular as Angela Merkel. His approval rating is in the mid 30s, not in the mid 60s.

As you surely know, Poles are usually very skeptical of the powerful and of their leaders.

So that’s probably not a surprise.

Returning to Chancellor Merkel, you have said that mutualizing the euro zone’s debt is the only solution to the problem. But is there a German leader who could get away with agreeing to that or would it be the end of that person’s career?

It wouldn’t be the end of that person’s career. I’ll give you an example. I’ve had a lot of discussions with very conservative groups of German businesspeople who run small and mediumsized enterprises. At first, when I end my speech with calling for mutualization, they say, “Are you crazy? We should pay for Berlusconi, for the Cypriots, the Greeks? Never, we will never do that, it would be complete madness.”

Then I start explaining and we start discussing. After roughly an hour and a half, the mood is very different. Nobody is happy. My interlocutors are now scratching their heads, asking “so you really think we have to do that or the EU will eventually collapse?” “Certainly,” I respond.

“Oh well so we have to think about how to go about it in that case then,” they say.

There is an emotional

understanding among Germans that if things get serious, Europe needs to be helped.

Europe is the most important factor for the well-being of a democratic Germany. Our history, as you know, is not always one to be proud of, but we can be proud about the unification of Germany and its integration with Europe. This is deeply ingrained, so I am not pessimistic. A courageous leader could convince the German people to make the move but the longer we wait, the bigger the mess and the deficit of trust, which we spoke about earlier.

There’s been some talk recently of a British exit from the EU. What consequences would there be if that happened, or if the UK radically limited its participation in the Union?

I don’t see how they can limit their participation in the EU any more than they already have. They are paying a price for this limitation. For example, it was a big mistake to withdraw the Tories from the European Peoples’ Party. Cameron has lost influence in the European Parliament and so has the UK. If the debate over a Brixit gets real, then the majority of Brits will start to seriously consider what it would mean. If they left, it would be a severe blow for the EU but a disaster for the UK. London’s City is the financial center for the euro and it depends on the future of the euro more than on the future of the pound. The pound has a great history but not a

great future. The UK is too small to have its own currency that could play an important role in the 21st century. But we should be patient with our British friends. The EU is stronger with Britain and I think Britain belongs in the EU. Foreign Minister Rados∏aw Sikorski has said he thinks Poland has a chance to access the inner circle of EU decisionmakers in the near future. Do you agree?

I am not saying this because I want to please your readers, but yes, I agree. The economic development of Poland has been impressive and so has the rise of a new Poland, built by the young generation. Also, Poland is one of the big-six in the EU – that shouldn’t be forgotten. So my answer is yes, definitely.

According to the World Economic Forum’s 2012 ranking, six of the 10 most competitive economies in the world are European. However, there is a widespread perception, which probably has some truth to it, that Europe needs to improve its competitiveness. How do you see it?

I don’t buy into all the doomsday prophesies screaming that Europe is not competitive. Germany used to be called the sick man of Europe. We knew the reasons for that. Unification was an unexpected miracle but also one which, in economic and social terms, was a huge challenge.

We needed more than a decade and millions of euros as well as Deutschmarks to get us through that. One of the reasons for the recovery of competitiveness by Germany is that we did it together. Eighty to 85 percent of unification is behind us now. Of course there are still strong disparities because you can’t expect differences created over five decades to evaporate overnight.

Germany regained competitiveness and I am sure France will do the same. It’s not easy.

It’s painful, but you have to adjust to the new realities.

Globalization is not a Wall Street conspiracy or an AngloAmerican conspiracy, it is real.

The competition the French car industry has from South Korea and Japan today, and probably China tomorrow, is real.

The crisis must be addressed in a balanced manner. We have to bring down public debt. The question is when, by how much and in what time frame. We have to increase our competitiveness everywhere in Europe, in some places more, in others less.

But we also have to develop a growth strategy because if we don’t, the other two elements won’t work. They will lead us

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have to develop their own economic strengths. But we also have to think of a transfer mechanism in the EU. Look at the United States, Greece is better off than West Virginia if you look at public debt. There are strong disparities in the US too, but somehow things are worked out. We also have to think about a transfer mechanism here in Europe.

You know the role Russia has played in Poland’s history. The view here in Warsaw of Moscow is pretty bleak. How do Germany’s elites view Russia?

Differently from Poland’s for sure. What we have in common is the understanding of the importance of Russia for Europe, for the good or for the bad. Therefore, I think both countries understand the importance of the independence of Ukraine for the new post-Soviet order in Europe.

Ukraine is the cornerstone of that and if that cornerstone were broken, we would be in a completely different geopolitical reality via-a-vis Russia.

Poland, the Scandinavians and some others understand that, some others might not. We both benefit from economic growth in Russia if you look at

“The pound has a great history but not a great future. The UK is too small to have its own currency that could play an important role in the 21st century.” into a depression. The process has to be balanced, but I am not pessimistic about it. Of course, there is also the issue of division of labor. Northern Europe is more industrialized, Southern Europe is less so. And the South won’t be as industrialized as Northern and Central Europe, we won’t change that.

So the answer must be that they

German and Polish trade. We have an interest in Russia being modernized but unfortunately, I don’t think the Putin era now will usher in much modernization. However, there are fascinating developments going on.

Yes, Russia is a “guided democracy” – whatever that means – but there are also very impressive developments in the

13

young generation. Freedom of information is a reality in Russia because of the internet.

Young Russians are looking towards the West. Lots of middle and upper-class Russians come to the West. In Germany, we have a very strong middle and upper-middle class Russian minority and they have good ties with native Germans.

It’s in our common interest to have a realistic picture, to see the positives and negatives because Russia is very important for all of Europe.

On a personal note, Mr Fischer, the world knew you in the past as a contestant of the established order, but in recent years you have become less of that ...

You are too kind! (Laughs.) I am part of the establishment now. I am also a 65-year-old grandfather today.

So what are the thought processes that take a man from where you were before to where you are now?

Life is long and not everything you believed in your youth was the truth. A lot of illusions belong to that period. Getting older means thinking more deeply. For 10 years, I believed in revolution and that was a big mistake.

So now you believe in evolution?

Yes. There was a debate in my party, the Greens, on whether we were betraying our principles by joining the government.

I asked them, “Where are the Greens more dangerous for the nuclear industry, protesting in front of a power plant or in the government making the laws that govern that power plant?”

The answer was, of course, the latter. But being in the government and making the laws means you cannot be antiestablishment anymore. So you have to make a choice. ●

Joschka Fischer Joschka Fischer was born in Baden-Württemberg, southwestern Germany, in 1948.

The third child of a butcher, he never completed secondary school nor attended university. However, by 1967, he had become active in German student and leftist movements, joining the militant group, Revolutionärer Kampf (Revolutionary Struggle).

Mr Fischer was a leader in several street battles against police officers. But after a spate of leftist terror attacks in 1977, he renounced violence as a means for political change and became involved in the Green Party.

In 1998, the Greens formed a coalition government with Gerhard Schröder’s Social Democratic Party and Joschka Fischer became vice chancellor and foreign minister of Germany. As foreign minister, he apologized for the violence of his activist days.

Mr Fischer left office in 2005 as the second longest-serving foreign minister in German postwar history. Since 2008, he has been employed with the Albright Stonebridge Group, a consulting firm led by former US Secretary of State Madeleine Albright and former US National Security Advisor Samuel Berger. ●

14

OPINION & ANALYSIS

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APRIL 8-14, 2013

Europe’s political stress tests Jan-Werner Mueller

I

proudly celebrates the legacy of former dictator Ioannis Metaxas.

Although Golden Dawn has existed for roughly two decades, only in the last year did it gain enough support to enter parliament. Moreover, its poll numbers continue to climb.

Golden Dawn’s success does not reflect a deep-seated desire among Greeks to return to authoritarianism.

The party has simply stepped in where the Greek state – long plagued by inefficiency and corruption – has retreated, providing basic welfare and other services to desperate citizens, while engaging in unprecedented violence against people who are or look like immigrants. One way that Golden Dawn attempts to embody the state is by having party members out on the streets as vigilantes.

Austerity has similarly sharpened a long-standing crisis of statehood and political legitimacy in Italy, reflected in the rise

tion’s failure to produce a clear winner. The sense of revulsion is acute: Many of the Five Star Movement’s supporters hope to transfer control of Italy’s government to citizen-representatives, whose every move would be digitally monitored to preclude corruption.

Some countries’ electorates initially backed austerity, but none has re-

hikes and spending cuts, since coming to power in 2011. But new measures introduced last month have driven an increasingly frustrated population – which, until recently, had endured painful austerity with little of the public outcry seen elsewhere in southern Europe – to the streets to demand a general election two years ahead of schedule.

“At its core, the euro crisis is a political crisis.

Rather than focus on quick policy fixes, Europe’s leaders need to pursue long-term solutions.” authorized it. In Spain, for example, voters understood the implications of supporting the ruling Popular Party, making it one of the only southern states where the government had some kind of mandate to implement

Lessons to learn Political and social turmoil across southern Europe holds several lessons for

austerity’s proponents – especially for Germany. First and foremost, the dogma that solid public finances – and, more broadly, a functioning state – can be achieved only through painful austerity is an illusion.

When forced to choose between their societies and their clientele, politicians may well decide that allowing social tensions to rise – even to dangerous levels – is better than sacrificing their own power bases.

In fact, when Germany embarked a decade ago on a reform program featuring major cuts to the welfare state and a more flexible labor market, SHUTTERSTOCK

n recent years, the European Union – or, more accurately, the powerful countries of northern Europe – has been subjecting its weaker members to social and political “stress tests” in the name of fiscal rectitude. As a result, southern Europe and parts of Eastern Europe have become a kind of political laboratory, with experiments producing strikingly varied – and increasingly unpredictable – outcomes in different countries. At the last EU summit, Luxembourg’s prime minister, Jean-Claude Juncker, even suggested that the risk of a “social revolution” should not be excluded.

While that outcome remains unlikely, it is increasingly clear that many European countries – and the EU as a whole – need to renegotiate their basic social contracts. But European elites, preoccupied with shortterm fixes, have not considered the long-term need for such revisions – to their own detriment.

Indeed, despite significant variations by country, one trend is becoming increasingly apparent across the EU: voters, regardless of their political orientation, are ejecting at the first

opportunity leaders who implement austerity. But, beyond this overwhelming opposition to austerity, countries’ experiences vary widely.

Country-by-country Greece has seen the rise of an overtly fascist party, Golden Dawn, which

of a new anti-establishment party, the Five Star Movement, which claims to transcend the traditional left-right political spectrum. Indeed, the movement lacks clear policy objectives, instead capitalizing on popular disgust with Italy’s political elites – a sentiment that led directly to the last elec-

tough austerity.

But the mutually reinforcing recession and debt crisis that Spain now faces have reinvigorated Catalonia’s long-standing secessionist movement; austerity has transformed a chronic, though manageable, problem into an acute existential question.

Similarly, Portugal’s center-right Social Democratic Party has pushed a tough pro-austerity line, including tax

it broke the rules of the euro zone’s Stability and Growth Pact. Public spending had to rise before it could fall, in order to provide some slack while renegotiating parts of the social contract.

The second lesson from southern Europe is that muddling through is unlikely to work. Building the needed support for a new social contract will require an appeal to fairness, not just to fiscal rectitude. And a mechanism to authorize the new deal – such as a grand coalition actually empowered by elections (not just reluctant support by major parties for technocratic leaders like Italy’s Mario Monti) – is essential.

Alternatively, citizens could try to lead efforts to re-negotiate their countries’ constitutional arrangements.

Iceland, for example, has embarked on an unprecedented experiment in crafting a bottom-up, “crowd-sourced” constitution. Similarly, albeit less radically, ordinary citizens comprise twothirds of Ireland’s Constitutional Convention.

If southern euro zone countries followed the route of forging a new social deal, they would have to ensure that it ultimately intersects with the paths of the northern European members. While all euro zone countries do not have to converge on a single model, their interdependence means that a pan-European social and economic settlement is needed.

European leaders must move beyond the increasingly implausible mantra of “belt-tightening today; full bellies tomorrow,” and recognize that, at its core, the euro crisis is a political crisis. Rather than focus on quick policy fixes, Europe’s leaders need to pursue long-term solutions. And that includes new social contracts. ● Jan-Werner Mueller is professor of politics at Princeton University. He is also a member of the School of Historical Studies at the Institute for Advanced Studies. His most recent book is “Contesting Democracy: Political Ideas in Twentieth-Century Europe.”

Copyright: Project Syndicate, 2013.

Project-syndicate.org

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Griffin estate in Powsin

Retail centers in small cities

Single and semi-detached houses, as well as apartments, will be built on a 37-ha plot in Powsin 16

The retail potential of small cities is still very high, as their inhabitants are starving for shopping malls 16, 17

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

New City changes hands The Hines Global Reit investment fund has acquired the New City office complex in Warsaw’s Mokotów district from Europejskie Centrum Przemys∏owe. The complex is situated on ul. Marynarska 15, in the Mokotów district. It comprises an 11-storey, 40,000-sqm building, completed in 2010 and a recently finished, fourstorey scheme comprising 4,000 sqm.

The two-building complex is fully leased to 51 tenants. The value of the deal was not revealed. ●

In this issue Qualia’s skyscraper . . . . . . . . . .15 Regional investment . . . . . . . . .15 Malls in small cities . . . . . . . . . .16 Eurocentrum construction . . .16 Griffin in Powsin . . . . . . . . . . . .16 Colliers interview . . . . . . . . . . .17

New skyscraper in Warsaw’s downtown Qualia’s new office building will pave the way for more high-rise towers on ul. Nowogrodzka in the heart of the Polish capital

storey underground garage with 200 parking spaces. Its lowest floor will be located 18 meters below ground level, 1.5 meters deeper than the neighboring subway tunnel.

The new development will consist of two parts – a sevenstorey wing with a spacious atrium at the front and a 106meter, 26-storey wing behind it.

A new branch of PKO BP is planned on the underground floors, as well as some shops and restaurants.

The construction work will start no sooner than in 2015, since Qualia will need at least a year to obtain all the necessary permits. The demolition of the existing structure and construction of the new one could take up to three years.

Qualia Development, the real estate subsidiary of Poland’s largest lender PKO BP, plans to build a 106-meter office building at the intersection of ul.

Nowogrodzka and ul. Marsza∏kowska, in the very heart of Warsaw. It will replace the existing seven-storey scheme built in the 1960s, which belongs to PKO BP. The company has already applied for a demolition permit.

The new building, designed

by Kury∏owicz & Associates architectural studio, will stand adjacent to the neighboring 11storey Wolf Marsza∏kowska building. It will comprise 27,000 sqm of office space and a five-

A new wave of high-rise buildings Qualia’s new skyscraper will be one of two planned developments of this magnitude in this

part of Warsaw’s downtown, alongside BBI Development’s planned 180-meter investment at the intersection of ul. Emilii Plater and ul. Nowogrodzka.

A few city blocks further, another addition to the new Nowogrodzka skyline will appear, when the existing 140meter Oxford Tower, also called the Elektrim building or “the twin tower of Marriott,” situated at the intersection of ul. Nowogrodzka and ul.

Cha∏ubiƒskiego, is raised by 35 meters to a height of 175 meters.

Other skyscrapers will be erected on the neighboring plots on ul. Emilii Plater, between ul. Nowogrodzka and ul. Wspólna, currently occupied by high school and a junior high school. The city plans to move the schools and sell the land where two buildings measuring up to 200 meters could be built.

Karolina Kowalska

COURTESY OF QUALIA

More than 54,000 sqm of shopping-center space was completed during Q1 in Poland divided over three new projects, according to a new Jones Lang LaSalle report. The level of competition is on the rise, with 644,000 sqm expected this year – the highest volume since 2009. JLL’s experts predict that the large influx of the new volume scheduled for this year may cause some downward pressure on rents in underperforming assets.

Office

The new PKO BP building was designed by Kury∏owicz & Associates

Economy

Investors back in Central Europe €958 million was invested in the Central European market in Q1 2013 Investment activity in the key Central European markets of Poland, the Czech Republic, Slovakia, Hungary and Romania was maintained in the first quarter of 2013 with €958 million invested, 6 percent more than the five-year average, according to a report by Cushman & Wakefield.

Despite value declining from the previous quarter’s €1.826 billion figure, C&W experts are optimistic. Positive investor sentiment and underlying activity suggests investment volumes for the year should match those posted in 2012, they say.

“Investor activity has increased marginally. Some

Cushman & Wakefield.

The Polish market saw volumes decline in Q1 2013, with €465 million invested compared to €818 million in Q1 2012 and €618 million a year before that. The Czech market recovered in Q1 with six transactions closed and volumes up at €237 million, compared with just €20 million for the same period in 2012. Similarly, Hungary attracted €159 million in Q1 2013, significantly up on the same period in 2012.

COURTESY OF SKANSKA

Over 50,000 sqm of mall space finished in Q1

APRIL 8-14, 2013, LI 18/13

PZU’s purchase of Skanska’s Green Towers in Wroc∏aw was one of the biggest deals in the office sector in Q1 2013 investors are considering taking more risk and reviewing the more developed and relatively mature parts of CE and finding not just a yield advan-

tage and better relative economic growth than in the west, but also an improving level of liquidity,” said Charles Taylor, partner at

Offices and industrial up, retail down Investors continued to favor the office sector, with some €646 million invested. The most significant transactions included the purchase of New City in Warsaw by Hines, PZU’s purchase of Skanska’s Green Towers in Wroc∏aw and

the purchase of Andel Park B in Prague by GLL. Allianz, Invesco, NEPI, Kulczyk Silverstein Properties and Hannover Real Estate also made investments into the office sector in this quarter.

The industrial sector saw a significant increase in investment volumes, mainly due to one transaction – Norges’ joint venture with Prologis, investing €258 million in highquality distribution facilities.

The investment accounts for 50 percent of the total investment in the industrial sector across Central Europe during 2012, the report found.

By contrast, retail investment activity was at its lowest since 2009, with the only notable transaction being Blackstone’s acquisition of Galeria Leszno in western Poland.

Karolina Kowalska

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Retail

APRIL 8-14, 2013

Office

Malls popular in small towns Eurocentrum building Small cities can be an rising on schedule attractive location for

Contrary to popular belief, smaller cities are not too far behind the major ones in terms of spending. The purchasing power index for retail trade in small cities (20,00050,000 inhabitants) is 105.5 (with the national average of 100). Admittedly, Warsaw (149) and Wroc∏aw (119) are ahead of the game in terms of

Karolina Kowalska

Biedronka mushrooms in small cities Main FMCG retail chains in cities with a population of 30,00050,000 (number of stores) 200 150 100 50

e rch ma er Int

t

rot ka ok

Ma ur ref o Ca r

St

rke

co Te s

nd Ka u

fla

l Lid

ka

0

Source: Colliers

Eurocentrum Office Complex in downtown Warsaw, scheduled for completion in June 2014, is already five storeys tall Work is progressing on the construction site of the 15storey Eurocentrum Office Complex on Al. Jerozolimskie, situated at the border of the capital’s ÂródmieÊcie and Ochota districts. Five storeys of the development have been erected so far.

Featuring LEED CS Gold certification of energy efficiency and environmental performance, the class-A scheme will deliver 65,800 sqm of leasable space and is expected to be the largest environmentally friendly office building in Poland. It will comprise an underground parking lot for 274 vehicles, a reception hall, and a conference room.

The building is being erected with high-quality materials such as red African granite, glass, and metal used for the building’s body.

“The first phase of the investment will be completed in June 2014 and 36 percent of the building’s space has

COURTESY OF CAPITAL PARK

spending power, but other major cities in Poland, such as Lublin and Bydgoszcz have purchasing power similar to that of smaller cities, with 103 and 106 respectively.

What some developers might find discouraging is the frequency with which dwellers of smaller urban centers visit shopping centers. As many as 43 percent people living in cities between 20,000 and 50,000 go to shopping centers less frequently than once a month, which is significantly more than Poland’s average of 35 percent. Moreover, 38 percent from the same group of cities do not go to shopping centers at all, as compared to 33 percent nationwide.

Small towns, big shopping

dr on

The most popular locations for planned retail schemes in cities between 30,000 and 100,000 inhabitants are Kutno, Nysa, Sochaczew and Cieszyn, according to the recent “Poland, Retail Gaps – Small Cities Review” report by Colliers.

According to Colliers experts, smaller cities with fewer than 50,000 inhabitants show the most promise among the locations they analyzed.

Such centers attract both local developers as well as investors operating nationwide.

Since late 2011, 12 schemes with more than 137,000 sqm of retail space have been delivered to these markets. The biggest ones were Alfa Centrum in Grudziàdz and Odrzaƒskie Ogrody in K´dzierzyn Koêle.

The majority of retail chains operate in the FMCG sector. Among the 59 small cities analyzed, 52 have DIY stores. The main retail chains in cities with the population below 50,000 are Biedronka (181 stores) and Lidl (52) in the FMCG segment, Media

Bie

modern shopping centers, a new report finds

Expert (66) in electronics and PEPCO (48) representing the fashion industry.

There are some unusual situations with stores that are typically found in large cities opening up in small towns, such as grocery chain Alma in Nowy Targ.

Eurocentrum features LEED CS Gold certification and will deliver 65,800 sqm of leasable space already been leased out, with Imtech Polska, Tebodin, Qumak, CEPD Management and Randstad Polska among the tenants,” said Sylwia Filewicz, head of development and construction at Grupa Capital Park.

The construction on the building was launched last summer. Grupa Capital Park secured z∏.324 million in financing from Bank Pekao.

The building’s location is also convenient transportwise, with a railway station as well as tram and bus stops

nearby. There are three other office developments in the area: the Jerozolimskie Business Park, Ochota Office Park, and Kopernik Office Building.

It is also located within a short bus ride to modern shopping centers Reduta, Blue City, Macro Cash & Carry and Castorama.

Erbud is the general contractor of the development. It was designed by PRC Architekci and the office space is being commercialized by Cushman & Wakefield.

Karolina Kowalska

Residential

Griffin Group will launch a high-end residential scheme in the Powsin area of Warsaw Investor Griffin Group plans to build as many as 380 luxury housing units – including detached and semi-detached houses, as well as apartments – on a 37-ha plot in the Powsin neighborhood of Warsaw’s Wilanów district.

Griffin bought the land last year from a bankruptcy trustee at “a bargain price,” the firm’s CEO Przemys∏aw Krych said.

The estate, which will be bordered by ul. Gàski, ul. Przyczó∏kowa, ul. Nowokabacka and Park Natoliƒski, will provide the same standard of luxury as the well-known Osiedle Konstancja, in the nearby posh suburb of Konstancin, but will be marketed at lower prices, according to Griffin.

Future residents of the estate will be able to choose from single houses ranging from 300 to 500 sqm, units in semi-detached houses or spacious apartments. The estate will comprise large recreational areas with ponds. The developer is also planning to build tennis courts and bicycle routes within the estate, which will also have 24-hour security monitoring.

One of the major draw-

backs of the location are high underground water levels. The plot on which the estate will be constructed did have some underground streams, but the company says they have dried up. Griffin representatives assure that there is no longer any threat of the area flooding.

“The construction should launch no sooner than in two years,” said Przemys∏aw Krych. “We would like to wait until the economic situation

COURTESY OF GRIFFIN GROUP

New luxury estate to be built in Powsin

The development will comprise as many as 380 units [in Poland] stabilizes.”

The new and as-yet unnamed estate will provide easy access to roads, rail and

public transport. It will be situated within a 15-minute walk to the Kabaty subway station.

Karolina Kowalska

APRIL 8-14, 2013

LOKALE IMMOBILIA – REAL ESTATE

Interview

COURTESY OF COLLIERS

More than just shopping

Lokale Immobilia sits down with Sean Briggs, managing director of retail agency at Colliers International to talk about the condition and the future of malls in Poland and in the CEE region Karolina Kowalska: Despite the crisis, shopping centers are expanding in Poland.

Seven malls exceeding 50,000 sqm are currently being built.

Is demand really that high?

Sean Briggs: You need to consider each city and project on its own merits. Warsaw seems to be full of shopping centers but when you look at the detail, there are still a few opportunities. I have always been cautious about macro indicators and simply dividing X by Y and saying one is at a saturation point. Most big cities still have opportunities for some types of retail development.

In Warsaw there are already a lot of shopping centers but developers seem insatiable.

They are planning to build Galeria Wilanów in Miasteczko Wilanów, just five kilometers away from Sadyba Best Mall, and relatively close to Galeria Mokotów as well.

Do we really need Galeria Wilanów?

The number of people living in this area has increased over the recent years and the catchment area has been further improved with the Siekierkowski bridge. One needs to look at the demographics and the catchment area, so I wouldn’t like to pass judgment on Galeria Wilanów without looking at their research. Sadyba Best Mall is close to Galeria Mokotów and both trade well.

An analogy might be made for the proximity of Z∏ote Tarasy and Arkadia and the clothing outlets on ul. Marsza∏kowska, for example. They are all relatively close to one another. However, H&M

managers said that their customer base for each of the H&M stores in these locations is really quite different. GTC is a successful and experienced developer. They wouldn’t be building something if they hadn’t done their research. I am sure the project will be a success.

What about the expansion of the existing centers in Warsaw, such as Galeria Mokotów?

Galeria Mokotów has already been extended a few times and if there is an opportunity for further expansion then there would be good demand for the additional space. Many retailers prefer extensions, as they can already judge the center on its previous track record. It is usually safer to extend the existing shopping centers than build a new one. If a shopping center is successful and retailers there are trading well, and you, as the owner, are being approached by a number of retailers, you have a reason to extend it.

There are also opportunities for the remodeling and refurbishing of some of the older shopping centers to improve their performance. It might be adjusting the layout to improve customer flow, updating the interior finishes or changing the tenant and merchandise mix. We are working on such a case in Gdaƒsk, the Morena shopping center.

How does the situation look in smaller cities, though?

In smaller cities I believe there are more opportunities for smaller local convenience-type shopping centers. Such con-

venience centers may be best suited for city suburbs or smaller cities.

You can of course build a shopping center of over 50,000 sqm in any place, but you will need to have a pretty significant catchment area. Probably there aren’t that many opportunities left for bigger shopping centers. But if you look at the footfall numbers nationwide, the number of people shopping there is still increasing.

What about other countries in the CEE region? Is Poland the biggest market in terms of building shopping centers and expanding them or are there any countries better at it?

The largest market is by far Russia. There are already quite a lot of shopping centers in Russia’s two main cities, that is Moscow and Saint Petersburg, as well as the major regional cities. But given its size, Russia still has a long way to go and there are a lot of opportunities there.

How about smaller cities or any other region? Do you think they need shopping centers?

There are many places where the inhabitants would like a shopping center. For example Malbork has a population of around 40,000 people and benefits from a significant number of tourists who visit the Malbork castle. At the moment, the people from the town have to drive all the way to Gdaƒsk or Gdynia for their shopping experience.

How is the crisis affecting shopping centers?

In Poland the official retail sales figures are still pretty healthy and growing. However, retailers are saying trading is difficult. This might be explained by the heavy discounting that maintains turnover but reduces margins.

I suspect the reality is probably somewhere in the middle. In the major cities the best shopping centers are doing well and some have a waiting list of retailers wishing to open.

There is an owner of shopping centers in southern Poland, Rafa∏ Sonik, who puts youth intervention centers in shopping malls. Do you think such an initiative makes sense?

I think that anything that establishes a connection with the community is good. In many shopping centers there are areas that are difficult to commercialize, so a creative use like this is a good idea.

Certainly children wandering around shopping centers causing trouble instead of being at school creates a problem. Anything that tries to prevent such behavior is great.

Are shopping centers in other European countries trying to become more than just a place to shop as well?

Exactly, the best shopping centers offer more than just shopping. Visiting a shopping center should be a leisure experience so depending on the size and location of a center there can be a variety of other uses.

This could range from the traditional cinema and restaurants to children’s play areas, kindergartens, language schools, exhibition areas and so on.

How do you see the future of shopping centers in Poland?

I am optimistic. The climate here favors enclosed environments and even with the increase in internet sales, many retailers are finding that internet shopping goes hand in hand with regular shops. People like to see, try and touch before buying, which is best done in a shop, even if the purchase is ultimately done through the internet. ●

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17

THE LIST

APRIL 8-14, 2013

www.wbj.pl

19

Corporate Services

IT Consulting Companies

Rank

Ranked by total number of consultants

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

Number of consultants: Total / Polish / Foreign

revenue Total revenue Revenue from IT Totalconsulting in Poland consulting (z∏. mln) from(z∏. mln) (z∏. mln)

www.bookoflists.pl

Main activities

Selected clients

Total number of employees / Year founded in Poland

Top local executive / Title

1st half of 2011 / 2010 / 2009 / 2008

1

PwC(1) Al. Armii Ludowej 14, 00-638 Warsaw 22 523-4000/22 523-4040 pwcpoland@pl.pwc.com www.pwc.pl

433 421 12

WND WND WND WND

WND 188.8 146.9 146.7

WND 453.7 389.1 399.7

Financial advice; strategic advice for public and private sector: business plan; investment consultancy; development management and strategy; transaction and crisis consulting; sustainable development consulting; economic inquiry and expertise; legal, tax and audit consulting

TP; PKN Orlen; PZU; PKO BP; PGNiG

1,765 1990

Olga Grygier-Siddons

2

Ernst & Young(1) Rondo ONZ 1, 00-124 Warsaw 22 557-7000/22 557-7001 ernst.young@pl.ey.com www.ey.com/pl

394 WND WND

WND 32.0 23.0 22.0

WND 176.0 133.7 120.8

WND 497.0 406.1 444.0

Business consulting; IT consulting

PKO BP; BOÂ; PGE; Energa; Orlen; Lotos; Poczta Polska; Agora; Cyfrowy Polsat

1,585 1990

Duleep Aluwihare; Piotr Piela; Aleksander Poniewierski

3

Deloitte Al. Jana Paw∏a II 19, 00-854 Warsaw 22 511-0811/22 511-0813 dpoland@deloittece.com www.deloitte.com/pl

305 305 -

WND WND WND WND

211.0 341.0 335.6 363.7

216.2 344.6 340.3 371.8

Business, tax, financial consulting; audits

PZU; Frontex; Tauron; PKP Cargo; Pekao

1,119 1990

Marek Metrycki; Dariusz Kraszewski

4

Capgemini Polska Sp. z o.o. ul. Pi´kna 18, 00-541 Warsaw 22 464-7000/22 464-7100 office.pl@capgemini.com www.pl.capgemini.com

265 WND WND

WND WND WND WND

WND WND WND WND

WND 471.5 392.3 333.2

Strategies and business transformation; IT technology consulting; supply chain management; customer relationship management; finance, business process and efficiency management; IT project management

WND

4,200 1996

WND

5

KPMG ul. Ch∏odna 51, 00-867 Warsaw 22 528-1100/22 528-1009 kpmg@kpmg.pl www.kpmg.pl

189 184 5

10.3 21.0 13.6 16.5(2)

41.8 66.5 70.7 72.3(2)

230.0 407.0 455.0 440.3(2)

Cost and efficiency management; IT risk management; company efficiency improvement; IT system selection, implementation and maintenance; IT system and process requirement inspection; general business advisory; corporate finance; transaction services; restructuring

WND

1,289 1990

Andrzej Âcis∏owski

6

SII Sp. z o.o.

Al. Niepodleg∏oÊci 69, 01-214 Warsaw 22 486-3737/22 486-3734 informacja@pl.sii.eu www.pl.sii.eu

90 90 -

10.0 12.0 9.2 6.5

WND WND WND WND

38.4 44.0 30.5 21.8

Software design and implementation; IT systems integration and Volvo; Polkomtel; maintenance; infrastructure development and maintenance; consulting Citi Handlowy; Gemalto; Pekao and analysis; testing

700 2006

Gregoire Nitot

7

Infovide-Matrix SA ul. Gottlieba Daimlera 2, 02-460 Warsaw 22 440-2500/22 440-2501 infovidematrix@ivmx.pl www.infovidematrix.pl

60 60 -

64.7 151.2 155.2 165.2

64.7 151.2 155.2 165.2

66.1 186.8 209.2 213.7

Consulting services and IT solutions

Deutsche Bank; Raiffeisen Bank; Ministry of the Interior and Administration; Generali; PGNiG

587 1991

Jan Maciejewicz

8

Carrywater Group SA Al. Jerozolimskie 65/79, 00-697 Warsaw 22 630-6655/22 630-6656 biuro@carrywater.com www.carrywater.com

52 52 -

WND WND WND WND

WND WND WND WND

5.5 10.0 8.7 8.6

Business consulting; IT consulting; project management

Grupa TP; Enea Operator; Liberty Direct; RWE; Polska Telefonia Cyfrowa

63 1996

Pawe∏ Biarda

9

APAX Consulting Sp. z o.o. ul. Chmielna 19, 00-021 Warsaw 22 244-2050/22 244buiro@apax.pl www.apax.pl

38 28 10

WND WND WND WND

WND WND WND WND

WND WND WND WND

Strategic advice; restructuring; operational advice; financial advice; IT consulting; interim management

Grupa PKP Cargo; Impel; Miasteczko Multimedialne; Polskie Porty Lotnicze; Agencja Rozwoju Przemys∏u

40 2007

Dariusz Brzeziƒski

MDDP Business Consulting (MDDP Sp. z o.o. Finanse i Ksi´gowoÊç Sp.k.) ul. Mokotowska 49, 00-542 Warsaw 10 22 322-6888/22 322-6889 biuro@mddp.pl www.mddp.pl

17 17 -

1.2 WND WND WND

5.3 6.0 5.7 4.9

5.3 6.0 5.7 4.9

Strategy definition and implementation; cost management; risk management; project management; performance and productivity management; IT systems implementation management; due diligence; Bumar; Pfizer; TVN; Polpharma; NFI EMF advice on SOX; internal audit; restructuring; corporate advisory

22 2006

W∏odzimierz Makowski

HardGamma Consulting ul. Ho˝a 51, 00-681 Warsaw 11 22 423-7060/22 211-1607 info@hardgamma.com www.hardgamma.com

6 5 1

WND WND WND WND

WND WND WND WND

WND WND WND 0.5

Development strategy; business strategy; definition and execution for TMT companies and technology start-ups; innovation management; internet/social media advisory; VC advisory

Microsoft Poland; TVN; Groupon; Loyalty Partners; Allegro

7 2006

Krzysztof Kowalczyk

Accenture Sp. z o.o. ul. Sienna 39, 00-121 Warsaw NR 22 464-0000/22 464-0001 pl.office@accenture.com www.accenture.com/pl-pl

WND WND WND

225.7 172.1 215.8 257.2

320.1 244.1 306.1 364.8

322.2 245.9 308.9 367.0

WND

WND

WND 1993

WND

getsix Sp. z o.o. ul. Szwedzka 5, 55-040 Bielany Wroc∏awskie NR 71 388-1300/71 388-1310 office@getsix.pl www.getsix.pl

WND WND WND

WND WND WND WND

WND WND WND WND

WND WND WND WND

Virtual office services; start-up support; business planning and modeling; accounting services; payroll and HR; IT services; legal and tax advisory

WND

45 2006

Monika Martynkiewicz-Frank; Claus Frank; Roy Heynlein

WND WND WND

WND WND WND WND

WND WND WND WND

WND WND WND WND

Services for companies in banking, insurance, energy and telecom sectors

WND

WND 1997

Franciszek Hutten-Czapski

The Boston Consulting Group Sp. z o.o. ul. Mokotowska 1, 00-640 Warsaw NR 22 820-3600/22 820-3636

kontakt@bcg.com www.bcg.com

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

Footnotes: (1) Financial year: July 1 - June 30; (2) Financial year: July 1, 2008 - June 30, 2009.

President

Managing Partners

Managing Partners

Senior Partner

President

President

President

Managing Partner

Partner

President

Partners

Partner

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to +48 22 257-7500, or via e-mail to wbjbol@wbj.pl. Copyright 2013, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

20

MARKETS

www.wbj.pl

APRIL 8-14, 2013

Stocks report

world stock indices DJIA

NASDAQ

S&P500

FTSE100

DAX

A slow week

NIKKEI

14,606.11 (April 04 close)

3,224.98 (April 04 close)

1,559.98 (April 04 close)

6,344.12 (April 04 close)

7,817.39 (April 04 close)

12,634.54 (April 04 close)

0.19% (for the week)

-1.30% (for the week)

-0.59% (for the week)

-1.05% (for the week)

0.28% (for the week)

2.42% (for the week)

CHANGE: 8.90% (year to April 04)

CHANGE: 3.62% (year to April 04)

CHANGE: 6.67% (year to April 04)

CHANGE: 5.25% (year to April 04)

CHANGE: 0.50% (year to April 04)

CHANGE: 18.21% (year to April 04)

52-week high: 14,684.49

52-week high: 3,270.30

52-week high: 1,573.66

52-week high: 6,533.99

52-week high: 8,074.47

52-week high: 12,650.26

52-week low: 12,035.09

52-week low: 2,726.68

52-week low: 1,266.74

52-week low: 5,229.76

52-week low: 5,914.43

52-week low: 8,238.96

Last week, already shortened as the result of the Easter Monday holiday, started slowly on the Warsaw Stock Exchange. On Tuesday, March manufacturing PMI figures were released.

Poland’s score fell to 48 points, the worst performance in five months. That caused WSE share values to grow by a much smaller margin than other European markets. The main indices in Frankfurt and Paris gained 1.3 percent and 1.8 percent respectively, while the main WIG index and the blue-chip WIG20 index gained just 0.35 percent and 0.24 percent respectively.

Wednesday was much worse. Due to worse-thanexpected macroeconomic data from the US, most of the European bourses saw falls, and the WSE was no exception. The WIG sank by 1.55 percent, while the WIG20 lost 1.65 percent.

The leader that day was

Major indices WIG

44,623.89 (April 04 close)

WIG20

2,342.64 (April 04 close)

04.04

02.04

03.04

28.03

27.03

25.03

26.03

22.03

21.03

20.03

19.03

18.03

14.03

04.04

02.04

03.04

28.03

27.03

25.03

26.03

22.03

21.03

2,300

20.03

44,000

19.03

2,340

18.03

44,800

14.03

2,380

15.03

45,600

12.03

2,420

13.03

46,400

08.03

2,460

11.03

47,200

07.03

2,500

06.03

48,000

15.03

52-week low: 2,035.80

12.03

Change year to April 04: -10.80%

13.03

52-week low: 36,653.28

08.03

52-week high: 2,628.36

Change year to April 04: -7.24%

11.03

Change for the week: -1.16%

07.03

52-week high: 48,222.72

06.03

Change for the week: -1.16%

Top 5 ABMSOLID PAMAPOL POLAQUA FASTFIN ZREMB

Closing 0.40 2.30 4.95 0.44 0.50

% change (week) 52-week high 21.21 3.15 19.79 2.99 16.47 6.25 15.79 0.49 13.64 0.55

52-week low 0.10 1.70 3.20 0.30 0.21

Top 5 BOGDANKA KGHM HANDLOWY BRE KERNEL

Closing 123.80 160.00 91.70 343.60 59.30

% change (week) 3.69 1.39 0.77 0.47 0.34

52-week high 143.00 194.80 102.10 356.90 76.00

52-week low 114.00 92.14 64.20 255.70 51.00

Bottom 5 REGNON ADVADIS CALATRAVA IDEON EUROMARK

Closing 0.01 0.01 0.07 0.06 0.03

% change (week) -50.00 -50.00 -36.36 -33.33 -25.00

52-week low 0.01 0.01 0.06 0.04 0.03

Bottom 5 EUROCASH JSW PKNORLEN PGNIG SYNTHOS

Closing 50.70 89.20 49.81 5.36 6.12

% change (week) -4.61 -4.50 -3.09 -3.07 -2.86

52-week high 56.25 101.00 57.40 6.10 6.88

52-week low 34.17 81.86 31.44 3.63 4.92

52-week high 0.10 0.08 0.53 0.20 2.09

sWIG80

Central banks move markets

10,817.23 (April 04 close)

Change year to April 04: 1.02%

52-week low: 2,147.52

Change year to April 04: 2.72%

NewConnect

32.30 (April 04 close)

52-week high: 11,245.80

WIG-Banki

0

6,306.27 (April 04 close)

Change for the week: -1.22%

52-week high: 42.49

Change for the week: -0.99%

52-week high: 6,723.16

Change year to April 04: -2.77%

52-week low: 32.08

Change year to April 04: -6.20%

52-week low: 5,163.30

33.00

Adam Narczewski X-Trade Brokers DM SA

04.04

0 03.04

0 02.04

2

2 28.03

27.03

26.03

2

2 25.03

2 22.03

2 21.03

20.03

19.03

14.03

12.03

13.03

11.03

2

52-week low: 8,984.43

0 08.03

07.03

06.03

04.04

03.04

02.04

28.03

27.03

26.03

25.03

22.03

21.03

10,800

20.03

2,500 19.03

10,900

18.03

2,560

14.03

11,000

15.03

2,620

12.03

11,100

13.03

2,680

11.03

11,200

08.03

2,740

07.03

11,300

06.03

2,800

0

Change for the week: -1.11%

0

52-week high: 2,718.31

18.03

2,594.74 (April 04 close)

15.03

mWIG40

6,600 6,520

32.75

6,440

32.50

6,360 32.25

SOURCE: WSE

04.04

03.04

02.04

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

15.03

14.03

13.03

12.03

11.03

08.03

07.03

06.03

6,200

04.04

02.04

03.04

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.03

15.03

14.03

12.03

13.03

08.03

11.03

07.03

06.03

6,280 32.00

Jacek Ciesnowski

Currency report

Other indices Change for the week: -1.14%

PGE, whose shares gained 1.3 percent after news emerged it could withdraw from a multi-billion-z∏oty investment in Opole.

At the other end was coal miner JSW, which saw its shares plummet by 4.6 percent.

On Thursday, investors were waiting for Mario Draghi’s decision on the ECB’s benchmark interest rate. When it was announced that it wouldn’t be reduced, trading in Warsaw held steady at the previous day’s levels. The WIG and WIG20 both saw slight gains of 0.04 percent and 0.26 percent respectively.

Friday started with an upward swing but disappointing news out of the US job market soured moods.

While the WIG20 closed the day with a 0.16 percent gain, the WIG fell slightly by 0.06 percent.

The week after Easter was more volatile than previous weeks, as investors focused on central banks’ monetary policy decisions.

The Bank of Japan announced it would immediately begin an asset-repurchase program worth €75 billion, with no limits regarding the maturity of the purchased assets. This statement caused a massive depreciation of the yen, which reached the level of ¥97 against the US dollar.

Those are levels unseen since August of 2009.

The European Central Bank kept interest rates unchanged, but Mario Draghi said that economic growth in the euro zone is still in danger.

The EUR/USD market dived at first, but was denied further downward movement at $1.2750.

The main currency pair rebounded strongly and reached $1.30 after the US announced that non-farm payrolls added just 88,000 jobs (against a forecast of about 200,000).

On the z∏oty market, local traders focused on external events. The EUR/PLN attacked the z∏.4.20 level (its highest since February of this year) but the end of the week brought a corrective movement, which brought the market down to z∏.4.17.

The USD/PLN was unable to break the crucial resistance of z∏.3.28 and headed down to z∏.3.21. Since the global situation is far from stable (now including political risks coming from North Korea), I still believe we will see higher levels of the PLN currency pairs in the upcoming weeks. ●

currency rates 3.3613

3.4951 03.04

05.04

3.4968 02.04

SOURCE: NBP

3.4646 29.03

04.04

3.4878 28.03

0.1024 05.04

0.1032 04.04

3.3

3.4310

PLN-100JPY

3.6

0.1039 03.04

0.1045 02.04

29.03

0.1055 28.03

3.4457

3.4389 05.04

0.102

0.1050

PLN-RUB

0.106

04.04

3.4416 03.04

02.04

3.4323 29.03

3.4349 28.03

4.9356

4.9264 05.04

3.4

3.4422

PLN-CHF

3.5

04.04

4.9399 03.04

4.9512 02.04

29.03

4.9707 28.03

3.2750

3.2358 05.04

4.9

4.9528

PLN-GBP

5.0

04.04

3.2693 03.04

3.2552 02.04

29.03

3.2773 28.03

4.1898

4.1820 05.04

3.2

3.2590

PLN-USD

3.3

04.04

4.1898 03.04

4.1813 02.04

29.03

4.1866 28.03

4.15

4.1774

PLN-EUR

4.20

SPORTS

APRIL 8-14, 2013

Skiing

www.wbj.pl

21

American football

Dobrowolski breaks Snow way to play Polish skiing record the Speed Master event, with a speed of 248.174 km/h.

David Ingham

SHUTTERSTOCK

Polish speed skier J´drzej Dobrowolski broke the Polish speed skiing record at the Speed Master event in Vars, southeastern France, last week.

Mr Dobrowolski held the previous record of 230.19 km per hour, but he went more than 4 km/h faster as he reached a fastest speed of 234.933 km/h. The Pole achieved the feat on the Chabriéres slope from a height of 2,750 meters, and a gradient of 98 percent.

After breaking his own record Mr Dobrowolski told journalists “I’m really happy I managed to improve my record. From the morning the weather was beautiful and there were perfect skiing conditions. I felt the power and knew that I could get a good result.”

However he still has a long way to go to beat the current world record, which is held by Italian skier Simone Origone

at 251.40 km/h.

As WBJ went to press Mr Origone was in first place in

Two stadiums were empty over the weekend as the result of canceled American football games

COURTESY OF JEDRZEJDOBROWOLSKI.PL/WOJCIECH KAMI¡SKI

The Polish skier broke his own speed record after reaching 234.933 km/h

J´drzej Dobrowolski

The bad weather caused a raft of postponements in the PLFA Topliga The Topliga game between the Warsaw Eagles and the Wroc∏aw Devils was postponed last week due to bad weather, with the match now due to be played on June 22.

The postponement was the second in as many games for the Devils, who have yet to set foot on the field during the

2013 season. The Eagles’ home season at Polonia Stadium will now begin on April 20, when they are scheduled to take on the Gdynia Seahawks in a rematch of NAC SuperFina∏ VII. The Devils are now set to play their first game on April 13, at home against the Warsaw Spartans.

Stadium management decided that the combination of already difficult weather conditions and an unfavorable forecast for the next few days

would cause the turf to become unplayable, forcing the postponement.

The game between the Wroc∏aw Giants and Koz∏y Poznaƒ was also postponed.

No make-up date has been announced, although the game will be played later this season.

The Giants, who won their season opener on the road, will now play their first home game of the year on April 20.

Alex Zarganis

22

www.wbj.pl

LIFESTYLE

Concert

APRIL 8-14, 2013

Patricia Kaas

Halcyon days

Concert

COURTESY OF ELLIEGOULDING.COM

British singersongwriter Ellie Goulding comes to Poland this April on the back of the release of her second album “Halcyon.” The 26-yearold first came to prominence in 2010 when she won the BBC’s annual “Sound of...” poll, an achievement that has previously been matched by such artists as Adele, Keane and Ellie Goulding 50 Cent. The same year she released her debut studio album “Lights,” which sold in the charts. “Halcyon” is more than 1.6 million copies carrying on where her first worldwide, and included the album left off, reaching numhit singles “Under the Sheets” ber two in the UK top 40 and number nine in the Billboard and “Starry Eyed.”

Teaming good looks with 200.

While professionally evgenuine talent and song-writing ability, Ms Goulding erything seems to be going looks like she has what it right for Ms Goulding, it has takes to become a mainstay not all been smooth sailing,

COURTESY OF PATRICIAKAAS.NET

Ellie Goulding April 20 Klub Stodo∏a ul. Batorego 10 Warsaw

as she recently split from love interest and renowned producer/electronic musician Skrillex. The pair had looked to become modern music’s power couple until their split. But for Ms Goulding the future still looks very bright.

David Ingham

French history Kaas Sings Piaf April 23 Sala Kongresowa Pl. Defilad 1 Warsaw This year marks the 50th anniversary of the death of French singer Edith Piaf. Ms Piaf is regarded as one of the greatest French singers of all time due to her distinctive voice which deftly interpreted the emotional lyrics of many of her best-known songs. One of those, “Hymne à l’amour,”

was written for world boxing champion Marcel Cerdan, with whom she had an 18month affair before he died in a plane crash in 1949.

To mark the anniversary, fellow French singer Patricia Kaas has produced an album of Ms Piaf’s greatest hits, with the songs featured on this record forming the repertoire for this Warsaw concert. Since releasing her debut album “Mademoiselle chante...” back in 1988, Ms Kaas has sold over 16 million records worldwide. She

also represented France in the 2009 Eurovision Song Contest, eventually finishing eighth.

As well as performing in the Polish capital, Ms Kaas will appear in some of the world’s most famous venues during her current tour, including the Royal Albert Hall in London, New York’s Carnegie Hall, Olympia in Paris, and the Operetta Theatre in Moscow.

David Ingham

For more information log on to kongresowa.pl

LAST WORD

APRIL 8-14, 2013

www.wbj.pl

23

Tech Eye

COURTESY OF AUTOMATIC INSIGHTS

The cars you see today are mighty different from the ones Techeye grew up with. Back when we were little, the average car was as long as a Uboat and as wide as a Sherman tank.

If you ran over a pedestrian at 60 mph, you could count to seven before feeling a slight bump in the rear shocks.

The Automatic Link

In those days, cars were made of steel and wrought iron, upholstered with asbestos and powered by unrefined dinosaur juice. They broke down every 20 miles and were deadly heavy to push. Not that the menfolk ever pushed, being designated drivers and all, so every woman in town had the leg muscles of an East German gymnast. And you never really “repaired” a car so much as beat it into submission and cursed it back into motion.

Some things have changed for the better since then, some for the worse. Car repair, for example, no longer resembles an act of domestic violence. At the same time, DIY maintenance is more difficult, what with all the fancy algorithms, the onboard computers and the specialized tools. It’s taken some of the greasy, profanity-laced romance out of car ownership.

Would-be grease monkeys do have some options though, like the Automatic Link, a forthcoming gadget from Automatic Labs (Automatic.com). The physical component of the Automatic Link, a microcontroller, plugs into a car’s OBD-II port; it then communicates with a companion smartphone app, via

Bluetooth.

(OBD-II ports are present in most cars sold in the US since 1996.

Europe, unique snowflake that it is, uses the EOBD standard instead.)

Among other things, the Automatic Link lets you diagnose the cause of an emergency light, reminds you where your car is parked and helps reduce petrol-wasting driving behavior. It even makes an automatic emergency call in the event of a crash, which habitual hit-and-run drivers ought to keep in mind.

The Automatic Link is currently available for pre-order for $69.95; it’s expected to ship this summer, with apps for both iOS and Android. The device is US-only for launch, but support for other countries is planned.

For those looking for something available in the here and now, there’s Torque Pro, a z∏.15 vehicle performance / diagnostics tool for Android.

As with the Automatic Link, you need a bit of hardware to communicate with the car; unlike that product, you can get one that fits an EOBD slot. The ELM327 programmed microcontroller is one popular and reasonably priced option.

Anyway, Torque Pro does many of the same things as the Automatic

COURTESY OF PARROT

Tech to keep modern cars in the fast lane

The Parrot Asteroid Smart Link, though the app seems to have a wider variety of features. These include CO2 emissions readouts, sending GPS-tagged tweets, horsepower and torque monitoring, and performance logs.

Last up this week is the Parrot Asteroid Smart, which sounds like the title of a terrible prog-rock album but is in fact a “very complete connected multimedia car head unit” that’s also an “apps + navigation + music hands-free system.” It won’t help maintain your car, but is definitely an improvement over the old days, when in-car entertainment consisted of counting telephone poles and naviga-

tion was usually accomplished despite the “assistance” of a map-illiterate navigator.

The Parrot Asteroid Smart has a 6.2-inch color multi-touch screen and can be hooked up to a rear camera, if you have one. There are just 12 apps on the Parrot Asteroid Market right now, but they’re all free and include popular music-streaming service Spotify. If the device tickles your fancy, you can pick one up for $600.

Incidentally, that’s exactly how much Techeye paid for our first car.

It was a monstrous, unreliable machine, so we called it “Helga.”

Just like Mom. ●

Ever arrived somewhere despite your navigator’s best efforts? Let us know: techeye.wbj@gmail.com

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

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

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

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.

Galeria 022, DAP, Lufcik pl ul. Mazowiecka 11a www.owzpap.pl Le Guern Gallery ul. Widok 8 Galeria 65 www.leguern.pl ul. Bema 65 www.galeria65.com Museum of Galeria Appendix 2 Independence ul. Bia∏ostocka 9 Aleja SolidarnoÊci 62 www.appendix2.com www.muzeumniepodleglo sci.art.pl Galeria Asymetria ul. Nowogrodzka 18a National Museum in www.asymetria.eu Warsaw Al. Jerozolimskie 3 Galeria Foksal ul. Foksal 1-4 www.mnw.art.pl www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

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

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

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