WBJ #4 2013

EXCLUSIVE

Historic candidacy

WBJ ’s interview with new Deputy PM and Economy Minister Janusz Piechociƒski 8-9

WWW.WBJ.PL

Anna Grodzka could become the world’s first transsexual deputy parliamentary speaker

VOLUME 19, NUMBER 04 • FEBRUARY 4-10, 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

Spotlight on exports

REAL ESTATE

COURTESY OF PHN

Polish products are gaining traction abroad, but promotion efforts leave much to be desired

• Convent apartments • Intraco demolition • Passive houses

12-13

15-18

In this issue

More coverage of Polish exports

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Transport & Logistics in Focus . .10-11 Cover Story . . . . . . . . . . . . . . .12-13 Opinion & Analysis . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . .15-18 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK

www.martela.pl

4, 5

A Platform divided

Focus on transport

Conservative members of the ruling party are defying the Prime Minister 3

A special report on issues affecting transport and logistics in Poland 10-11

NEWS

www.wbj.pl

IN THE SPOTLIGHT

Numbers in the News

The EU budget summit

2% was Poland’s GDP growth rate in 2012, according to preliminary estimates from the Central Statistical Office.

Some 43.7% of Polish companies are in bad or very bad financial condition, compared to 38.7% last year, according to a report by Bisnode Polska. The financial difficulties are mostly due to companies not receiving payments on time. Bisnode said that large companies (those which employ over 250 people) are generally in better shape while clothiers, building material producers and distributors and furniture producers are in the worst condition.

z∏.35.5 billion is the projected budget deficit in Poland for this year, according to the 2013 budget passed by Poland’s parliament.

Quote of the Week

EU leaders are meeting on February 7-8 in another attempt to reach agreement on a long-term budget after a failed summit in November, 2012. A proposal made then by European Council president Herman Van Rompuy included expenditures totaling €972 billion over the next seven years (2014-2020). That figure, which is roughly the same amount as the expenditures projected for the current 2007-2013 budget period (€975 billion), was deemed by some EU net payers as too high. The strongest

LOT to ask Boeing for planes? Marek K∏uciƒski, spokesperson for Poland’s national airline LOT, said the company is considering asking Boeing for replacement planes as compensation for the currently grounded 787 Dreamliner aircraft. He added, however, that the airline is working on various solutions and did not disclose any details as to whether it would demand compensation from the aircraft producer. ●

Janusz Lewandowski, the EU’s budget commissioner, said, “It’s a responsibility issue. Nobody will understand if Europe disagrees on sums amounting to 0.1 percent of the EU’s GDP. As a Nobel Peace Prize winner, it should be able to guarantee itself financial stability for the next seven years.” Poland itself is satisfied with the Van Rompuy proposal. It would award Poland €72.4 billion over the next seven years, compared to the roughly €68 billion it received in the current EU budget.

“Compromise is like sharing a cake. You have to make sure everybody thinks they got the biggest slice.” Former justice minister and current Civic Platform MP Krzysztof Kwiatkowski, commenting on legislative efforts to sanction civil unions in Poland.

Figures in focus Looking for work Seasonally adjusted unemployment rates in December 2012 (in %) 30 25 20

*Highest in the EU **Lowest in the EU

Jacek Ciesnowski 10 5

As the CEE real estate market grew in 2012, companies sought new employees and increased salaries for the first time since 2007. Will they continue to do so? Mark Twomey from Tara HRC describes the sector’s HR perspective.

Calendar

February 7

POLAND-UAE BUSINESS FORUM

Event:

This business forum will explore potential business ties between Poland and the United Arab Emirates, and will coincide with a visit by the UAE’s economy minister. Polish Economy Minister Jacek Piechociƒski, and the UAE’s ambassador in Poland will attend, as will representatives of the business community of both countries. Companies from the banking, construction, trade, health care, logistics, transport and energy sectors are invited to participate. Requests to attend should be addressed to rafal.pawlak@paiz.gov.pl. Hyatt Hotel, ul. Belwederska 23, Warsaw paiz.gov.pl/en

Location: Web:

INTLLECTUAL PROPERTY RIGHTS MANAGEMENT

Event:

This seminar will address issues of intellectual property rights such as: developments in cloud computing and their legal conse-

Web:

quences, risks of cross-border contracts and resolving disputes. TGC Corporate Lawyers, Crown Tower, 11th floor, Terraces Conference Center, ul. Hrubieszowska 2, Warsaw bpcc.org.pl

BRITISH POLISH HEALTHCARE FORUM

Location:

Event: Subtitled Creating Opportunities in the Polish Health System – Effective Management and Finance, this forum aims to promote UK best practice in health care facility and hospital management to key stakeholders in Polish hospitals, with a focus on secondary and tertiary care. This event will be in the form of an up-to-date briefing on opportunities in the health sector in Poland, and will deliver concrete business-development opportunities for companies attending, as well as longterm follow-up prospects. Location: British Embassy, ul. Kawalerii 12, Warsaw Web: bpcc.org.pl

-27 Po Un l ite and dK ing do Cz m ech Re pu blic Ge rm an y Au str ia* *

nia ua

vak

Gre ece

More jobs in real estate?

0 *

On WBJ.pl

Lith

Fewer people taking mortgages The Polish Bank Association estimates that the value of new mortgage loans may fall by 12% to z∏.37 billion in 2013. Even though the average interest rates on mortgages are falling, the market is shrinking due to higher unemployment and a weakening economy.

opponents of the current proposal are the United Kingdom and Germany, who want to cut expenditures by €30 billion in the next budget. According to AFP, which cites unnamed sources close to the negotiation process, the next summit will begin with Mr Van Rompuy’s November budget proposal. But the European Council president is open to cuts. The Irish Minister of State for European Affairs, Lucinda Creighton, said in an interview that she believes the EU will agree to cuts within the €15-20 billion range.

ain

The government’s approval rating in January was the lowest since Donald Tusk first became prime minister in 2007, according to TNS Polska. Compared with December 2012, support for the government fell by 6 percentage points to 17%. At the same time, 76% of respondents expressed a negative view of the government. The prime minister himself has an approval rating of 22% in January, 7 percentage points less than in December.

z∏.3.5 billion is how much the European Commission is withholding in funds for road construction in Poland due to suspicions of price fixing amongst Polish firms.

SHUTTERSTOCK

Government with recordlow support

3.7% was Poland’s CPI in Q4 2012 (0.8 percentage points higher than in the corresponding period of 2011).

Slo

Nearly half of Polish firms in trouble

FEBRUARY 4-10, 2013

Source: Eurostat

Company index ABP ............................................................................4 Accreo ......................................................................15 Amber Foods............................................................13 Angel Poland Group ................................................18 ArcelorMittal ..............................................................6 Balticon ....................................................................11 Bank Gospodarstwa Krajowego................................6 Bank Ochrony Ârodowiska ......................................16 Bank Pekao........................................................13, 20 Bank Polskiej Spó∏dzielczoÊci ................................16 Bank Zachodni WBK............................................7, 16 BASF ..........................................................................6 Bisnode Polska..........................................................2 Boeing ........................................................................2 BRE Bank ................................................................18 Buildgreen ..............................................................16 Burger King ..............................................................4 Byggnadsproduktion AB..........................................15 CBRE ........................................................................16 Ciech ..........................................................................6 Comarch ..................................................................13 Constantia Industries ..............................................13 CTA Digital ..............................................................23 Dawtona ..................................................................12 Dax Cosmetics ........................................................13 Deloitte ......................................................................5 Deutsche Bank ........................................................16 DnB Nord ................................................................13 Dr. Irena Eris Cosmetic Laboratories ....................13 DSH ..........................................................................11 Energa ......................................................................12 Erbud........................................................................11 Ferro ........................................................................13 Fort Development ....................................................15 Galicki Sypniewski Architekci ................................15 Getin Bank ..............................................................16 Getin Noble Bank ....................................................13 Ghelamco ................................................................18 Impress Group ........................................................13 Inglot ........................................................................13 Intraco SA ................................................................15 Ipopema Group ..................................................13,15 IVG ............................................................................15 Jones Lang LaSalle Hotels & Hospitality Group....15 Jutrzenka ................................................................12 Kermas Group ..........................................................6

Kompania W´glowa ................................................13 KPMG ........................................................................6 Lajkonik....................................................................12 Laude.pl ..................................................................11 LOT ......................................................................2, 13 Magellan Pro ..........................................................13 Magnolia ....................................................................4 MEDICALgorithmics ................................................13 Modern Work Environment Labs ............................23 Modlin Airport..........................................................11 Nordea Bank............................................................16 Oceanic ....................................................................13 Oktawave..................................................................13 Orbis Group..............................................................15 Peter Nielsen & Partners ........................................6 PGNiG ......................................................................20 PKN Orlen ................................................................13 PKO BP ......................................................................6 PKP ..........................................................................11 Polski Holding NieruchomoÊci ..............................15 Poppy Coffins ..........................................................23 Ryanair ....................................................................11 Schoenherr ..............................................................15 Sedlak & Sedlak ........................................................7 Selena ......................................................................13 SGB-Bank ................................................................16 Silvercrest ..................................................................4 Skoda........................................................................13 Stewart Title ............................................................15 Tara HRC....................................................................2 Tesco ................................................................4, 5, 12 Tymbark ..................................................................12 UniCredit ............................................................13, 20 Warimpex ................................................................15 Warsaw Stock Exchange ..........................................6 Warsaw Chopin Airport ..........................................11 Winiary ....................................................................12 Wizz Air ....................................................................11 X-Trade Brokers ......................................................20 Zachem ......................................................................6 Zak∏ady Chemiczne Alwernia....................................6 Ziaja..........................................................................13

NEWS

FEBRUARY 4-10, 2013

www.wbj.pl

Party politics

The justice minister’s open defiance of Donald Tusk raises concern over Civic Platform’s unity For the second time in four months, a group of conservative MPs from ruling party Civic Platform have very publicly opposed Prime Minister Donald Tusk on a social issue. Civic Platform-sponsored legislation on civil unions that would have granted people in same-sex partnerships some marriage-similar rights, was defeated in parliament in late January. Dozens of Civic Platform members voted against the measures. During the parliamentary debate the conservative faction’s leader, Justice Minister Jaros∏aw Gowin, said that since the Polish constitution describes marriage as the union of a man and woman,

the government’s proposal was unconstitutional. Prime Minister Tusk, who supported the measures, responded that Mr Gowin was not expressing the government’s official position. The proposal was voted down. Forty-six Civic Platform MPs voted against the legislation, which only managed to garner 211 votes in the 460member Sejm.

Loyalty the most important? The vote sparked speculation on how long Mr Gowin would remain in Prime Minister Tusk’s government. This is not the first time he has locked horns with the prime minister. In October 2012, he abstained during voting on measures that would have made Poland’s abortion laws radically stricter. The party line had been to

reject the proposals outright. In the end 40 Civic Platform MPs voted for the legislation, embarrassing the prime minister, who aims to present his party as centrist and moderate. After the civil partnership

“The government is a kind of civil partnership, in which loyalty is essential.” debate, the prime minister reportedly severely admonished Mr Gowin. At a press conference, he only said, “The government is a kind of civil partnership, in which loyalty is essential.” Meanwhile, Civic Platform deputy leader Grzegorz Schetyna told radio station TOK FM that there should be consequences for Mr Gowin’s

insubordination. “I do not accept disloyalty in the party,” said Mr Schetyna. “When people are in a parliamentary caucus they should know that loyalty is very important, if not most important.” The third-largest party in parliament, the left-wing Palikot’s Movement, has announced that it will call a vote of no-confidence against Mr Gowin. The internal differences within Civic Platform likely contributed to a decrease in support. A poll carried out by Homo Homini found that if parliamentary elections had been held in late January, opposition party Law and Justice would have won, with 30 percent of the vote. Civic Platform would have come in second with 29 percent. Nevertheless, Mr Tusk may have come out the winner

COURTESY OF JAROS¸AW GOWIN

Gowin seizes spotlight as conservatives snub PM

Jaros∏aw Gowin is considered the leader of the conservative faction in Civic Platform within his own party. Local media reported on Friday that the justice minister apologized to the prime minister for his behavior. In a statement for press agency PAP, Mr Gowin said that Civic Platform would

now discuss the issue of rights for informal couples to ensure that the views of both conservatives and liberals in the party are voiced. Remi Adekoya, Kamila Wajszczuk

Parliament

Poland to get transgender deputy speaker?

Despite the rejection of the legislative proposal on samesex civil unions (see opinion p. 14), the issue of LGBT rights isn’t going away. Last week Civic Platform announced that it would make amendments to its civil partnership legislation and present it to parliament for another vote in the near future.

COURTESY OF FLICKR/R-A-D-E-K

Anna Grodzka, Poland’s first transgender MP, could become deputy speaker of the Sejm

Ms Grodzka is no stranger to controversy Perhaps sooner, another controversial gender-related

issue might take center stage. Last week, Anna Grodzka’s

party, Palikot’s Movement, announced it was offering her the position of Sejm deputy speaker. The party had withdrawn its support for its previous deputy speaker, Wanda Nowicka, after she accepted a controversial bonus for her work in parliament last month. Traditionally, each party gets one such position, but Ms Grodzka will have to win a majority in parliament before she can take up the post. That will be no small feat. Poland’s largest opposition party, Law and Justice, has already

announced it will oppose her nomination. But Ms Grodzka said she is not afraid of controversy. “That is an element of the work in parliament,” she said. Indeed, Poland’s first transgender MP is accustomed to evoking strong emotions. During the debate on civil partnerships, PiS MP Krystyna Paw∏owicz repeatedly referred to her as “Mr.” “When I see a guy beside me how can I say ‘excuse me Ms?’ You can’t just stuff hormones into yourself and become a woman,” she said.

“The phenomenon of same-sex relationships is against the laws of nature. It is harmful, unjust, and it breaches the rules of equality,” Ms Paw∏owicz added. Anna Grodzka’s party colleagues have since announced that they will take the case to prosecutors because Ms Paw∏owicz had employed “hate speech” and “incited violence.” But when asked if she was sorry for her comments, Ms Paw∏owicz replied that she has “nothing to apologize for.” Remi Adekoya

EC suspects price-fixing, withholds billions for Polish roads A group of Polish construction firms allegedly tried to create a cartel for road contracts The European Commission confirmed last week that it had suspended the payment of z∏.3.5 billion in EU funds for co-financing road construction in Poland. The EC suspects that 10 firms attempted to fix prices for the cost of work on sections of an expressway in Je˝ewo-Bia∏ystok, parts of the

Number 8 expressway in Piotrków Trybunalski-Rawa Mazowiecka and parts of the A4 highway in Radymno-Korczowa. All three projects were being co-financed with EU funding. The EC said it had received “information” that companies involved had attempted to fix the prices, and it had therefore decided to suspend the funds. “In line with this information, confirmed by Polish authorities, the prosecutor has charged 11 people with trying to

create a cartel,” the EC said in a statement. The suspects include 10 former and current managers of large construction firms, and one director in the General Directorate for National Roads and Motorways, Poland’s national roads authority. “If the accusations are found to be true it would be a breach of the directives on public tenders in the EU and would prove a potentially serious weakness in the management and control system,” the communique read. The EC also confirmed that it had

nitially informed the Polish government of its decision on December 21, 2012. But El˝bieta Bieƒkowska, regional development minister, told public radio that the EC’s decision was “completely not understandable.” “Poland’s system of choosing projects and contractors works perfectly well and Poland is the injured party here, because Polish authorities had already discovered that there may have been attempts to create a cartel in two or three cases,” she added.

COURTESY OF WIKIMEDIA COMMONS

EU funding

Poland needs many more kilometers of good roads and highways Deputy Regional Development Minister Adam Zdzieb∏o confirmed that the Polish government had informed the EC in 2010 that suspected firms were trying to create a cartel and had started investigating the matter.

After holding discussions with EC officials, Deputy Transport Minister Patrycja Woliƒska-Bartkiewicz said that the EU executive could lift the suspension of the funds in midMarch. Remi Adekoya

NEWS

www.wbj.pl

FEBRUARY 4-10, 2013

International affairs

Corruption

Poland to send soldiers to Mali on training mission

Getting better, slowly

The Polish government has petitioned President Bronis∏aw Komorowski to send 20 soldiers to Mali to take part in an EU training mission in the country. After the president gives his approval, as expected, the Polish soldiers would be involved in the mission from February 16 until the end of this year. The soldiers would be tasked with helping to improve the skills of the Malian army so that it can effectively battle Islamist rebels who last year succeeded in taking over large swathes of territory in the country’s north – an area the size of France. After having secured the northern territories, the fundamentalists then attempted a takeover of the entire country, including the capital, Bamako, prompting a military response from France. The French government currently has 2,500 soldiers in Mali and its intervention has gone well so far. Its troops are now in full control of the central

AFP/EAST NEWS

Poland will participate in a training mission to aid the country’s military in its battle against Islamist rebels

French soldiers patrol Timbuktu, Mali, on January 31 part of the country and have captured the ancient historic town of Timbuktu from the Islamists, who have so far retreated without a fight. The main worry will now be keeping them from returning. In mid-January, the EU training mission was launched and last Monday, Prime Minister Donald Tusk met with French President Francois Hollande to discuss the matter. After the meeting, Mr Tusk said there was no need for Polish soldiers to join the fighting themselves, but they would serve as instructors to the Malian army.

The EU’s mission is scheduled to last for 15 months. Five hundred European troops are planned to take part, including 200 instructors, 70 commanding officers and a 200-strong security force. International donors have so far pledged up to $455 million to help oust the Islamists permanently. Meanwhile, West African countries have pledged 5,700 soldiers to aid, and then take over from, the French soldiers currently bearing the brunt of the battle. The cost of the Polish mission is estimated at z∏.5.8 million. Remi Adekoya

Poles give fewer bribes, but bigger ones In 2012, police started 5,512 corruption cases, 140 less than in 2011, according to a Rzeczpospolita report. The number of actual corruption crimes detected also fell (by 11.4 percent). The overall value of the bribes was, however, twice as big as in 2011. Last year crooked officials received z∏.15.63 million in bribes, compared to z∏.6.39 million the year before. With numerous anti-corruption campaigns and decreasing social acceptance of bribery, the number of corruption cases has fallen. The detection rate is higher as well, as more people report to authorities when they know of illegal activities, even anonymously. Unfortunately nothing has changed in the matter of who is receiving the bribes, with doctors and public officials still at the top of the list. The Council of Europe’s Group of States against Corruption (GRECO) in a recent report, issued 16 provisions that should be implemented regarding fighting corruption among judges, prosecutors and members of parliament. They mostly deal with ethical issues and conflicts of interest,

which the report states are “not understood by some officials.” The organization says its recommendations would make ethical rules transparent and would implement a series of ongoing training sessions on conflicts of interest, rules concerning gifts, prohibition or restriction of certain activities and declaration of assets and private interests. Poland’s difficult labor market has also pushed job seekers to bribe people that could provide them with employment. In 2012, some z∏.8.2 million was spent on bribing potential

importers (compared to z∏.4.5 million in 2011). It’s important to note that these numbers pertain only to the cases that have been investigated by the authorities. In the 2012 edition of Transparency International’s annual Corruption Perceptions Index report, Poland placed 41st, the same as the previous year. Despite its stagnation in the ranking, Poland managed to overtake Greece and Italy, as well as improve its score to 58 points, from 55 points in 2011. Jacek Ciesnowski

Corruption scores Selected countries’ scores from Transparency International’s 2012 Corruption Perceptions Index

Rank

Country

Score

Denmark

Finland

New Zealand

32.

Estonia

37.

Slovenia

41.

Poland

46.

Hungary

48.

Lithuania

54.

Czech Republic

133.

Russia

28 Source: Transparency International

Exports

Scandals rock Polish food exports

Karpielówka Restaurant Our name comes from an area in Zakopane, and in our restaurant you can feel the air and the atmosphere of the Tatra Mountains. With our original highlander décor and the climate of an outlaw’s cottage, it’s the perfect place to dine on traditional dishes including our specials: dumplings, knuckle baked with onion, dishes with oscypek cheese and much more. We can organize wedding dinners, conferences and banquets, as well as picnics with BBQ and bonfire. Check our lunch menu, our delivery service and catering options. ul. Indiry Gandhi 11, tel. 22 644 85 10 | Imielin Metro Station, close to Multikino; City Hall Ursynów; 5 minute walk towards St. Thomas the Apostle Church Open 12:00-last guest. | Reservations: +48 22-644-85-10 or karpielowka@home.pl www.karpielowka.com.pl | Check our Facebook page

A scandal has erupted after traces of horse DNA were found in frozen beef burgers sold in various retail chains across the UK and Ireland. Most of the samples showed just trace amounts of horse DNA, but one of the samples tested contained 29 percent equine meat. The supplier – Irish meat processing giant ABP, quickly closed one of its factories and began an investigation. It later emerged that the meat originated from Poland, but the Polish slaughterhouse owned by ABP issued a statement denying the allegations. How the hamburgers became contaminated with horse DNA is still unknown. A Polish veterinary supervisor, Jaros∏aw Naze, told The Guardian that none of the country’s slaughterhouses are licensed to kill horses. Samples from Polish slaughterhouses that supplied the ABP plants showed no traces of horse DNA. Mr Naze followed several lines of inquiry, including the possibility that horse meat was brought into slaughterhouses illegally, or that the meat entered the supply chain

during the mincing process. As a result of the scandal, British supermarket chain Tesco has canceled its contract with Silvercrest of Ireland (owned by ABP), one of the biggest burger producers in Europe, for “breach of trust” saying it had failed to source, as demanded, all ingredients from the UK and Ireland. Tesco is also introducing its own DNA testing. Burger King, whose products were made on separate lines at Silvercrest, stopped using the plant last week. Traces of horse DNA were found in hamburgers in Spain as well. As of press time, the source had not been

discovered.

Spoiled milk To make matters worse, traces of rat poison have been found in powdered milk used in wafers and other sweets made by the Polish company Magnolia. Their products are exported to Slovakia and even though further tests showed that the amounts were so low they were harmless to humans, tons of Magnolia’s products have been withdrawn from stores and Slovakian officials have called the European Commission to intervene in the matter. Jacek Ciesnowski

SHUTTERSTOCK

Horse DNA in hamburgers and milk laced with rat poison

Polish food exporters must be cringing at the latest reports

BUSINESS

FEBRUARY 4-10, 2013

Intellectual property

www.wbj.pl

Exports

Poland takes wait-and-see Polish food exports see boom Vietnam, it’s Polish approach on unitary patent Insalmon, in the UK it’s After flip-flopping on the issue, Polish officials have decided not to back new EU regulations

SHUTTERSTOCK

tion trials that would take place outside Poland and in a foreign language. It could also mean an influx of foreign patents being registered in Poland. On the other hand, Poland’s economy isn’t very innovative (23rd in the EU, according to a 2012 EC report) and doesn’t have many patents that would be eligible in other EU countries. According to a study performed by Deloitte for the Polish government, implementing the unitary patent would cost Polish companies z∏.76 billion over the next 30

years, while sticking to the current rules will cost only z∏.48 billion. The higher costs for implementing the unitary patent would stem from legal procedures as companies try to make sure they aren’t infringing on others’ intellectual property. The proposed unitary process would, in theory, simplify the patent legislation. A patent granted in one EU member state would apply in all others. Italian and Spanish officials have also come out opposing the new regulations. Jacek Ciesnowski

Polish food is so well-known that it has even exported vocabulary: “pierogi” and “kie∏basa” are household names in many parts of the world. And the actual pierogi and kie∏basa, among other Polish edibles, are becoming increasingly popular. In the Q1-Q3 period of 2012 Poland exported nearly €12.5 billion worth of foodstuffs, some €1 billion more than the same period of 2011, according to data provided by the Ministry of Agriculture and Rural Development. Various estimates for the whole of 2012 put Polish food exports at over €17 billion which, if confirmed, would constitute a record high. In 2011, the previous record year, Polish food exports were worth €15.3 billion. How fast have Polish food exports have grown? Ten years ago they were worth a quarter of the estimated 2012 figure.

What are the hits? Various Polish foodstuffs are popular in different markets. The French love Polish tobacco and tobacco-related products

COURTESY OF WIKIMEDIA COMMONS

On February 19, Poland and several other EU countries were due to sign new patent regulations introducing a unitary patent across the bloc. After initially declaring its support for the new legislation, Polish officials now say they will not sign it. The decision was announced after a meeting between government officials and Polish business representatives. “It doesn’t mean that Poland will never sign the unitary patent agreement,” Jacek Âwieca from the Business Centre Club told Gazeta Wyborcza. “We’ve decided that we will observe how it will work in other countries and after analysis, we’ll talk about further decisions on this matter.” Polish businesspeople and employers have been arguing for months that the unitary patent will have a negative effect on Poland’s economy. Their main concern is that businesses would be dragged into complicated patent litiga-

chocolate and in France it’s cigarettes

Britons seem to love Polish chocolate (which are included in Polish food export statistics). In the first three quarters of last year, France imported nearly €227 million worth of such products. Russians import Polish apples and pears (€164 million in Q1-Q3), Germans are keen on Polish fish (€218 million), while Britons enjoy Polish chocolates (€180 million). The biggest importer of Polish foodstuffs is Germany (accounting for 21 percent of Poland’s total food exports), followed by the UK (7.2 percent) and Russia (6.2 percent). But there are new, fastgrowing markets, where Polish food is becoming increasingly popular – exports to Libya grew by 648 percent last year. Other Middle Eastern coun-

tries followed – in Yemen, Syria, Saudi Arabia and the United Arab Emirates Polish exports grew by 267, 145, 124 and 118 percent respectively. One of the more important markets for export outside the EU is Vietnam. Poland exports mostly fish (salmon), milk and milk related products to the Southeast Asian country, and exports there grew by 72 percent in 2012. International retail chains have boosted Polish food exports. Last year they exported products worth nearly €1.2 billion, according to data provided by Polish Trade and Distribution Organization. The leader is Tesco, who exported (mostly to UK) nearly €400 million. Jacek Ciesnowski

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BUSINESS

www.wbj.pl

FEBRUARY 4-10, 2013

State spending

State investment vehicle to begin in Q2 holders will be private entrepreneurs, and Polish Investments will withdraw after a while, acting as a private equity fund.

Early phase Polish Investments, the special-purpose vehicle that Prime Minister Donald Tusk said would use state assets to finance investments and prop up the Polish economy, is due to take off in the second quarter of this year, the Treasury Ministry announced last week. The SPV will establish companies responsible for completing concrete projects, especially in infrastructure. It could, eventually, even be listed on the Warsaw Stock Exchange, said Deputy Treasury Minister Pawe∏ Tamborski. The firms’ main share-

By 2015, the government aims to provide z∏.40 billion to the vehicle, with the funds coming from the liquidation of state assets. The Treasury recently sold a stake in PKO BP, raising z∏.4.4 billion for the first phase of the program. “For now, the priority is to complete the organization process and work on a list of potential investments. Projects are to wait for the money from the sale of shares in state-owned companies, not the other way around,” Treasury Minister Miko∏aj Budzanowski told reporters last week.

A different kind of public spending? But Stanis∏aw Gomu∏ka, chief economist at the Business Centre Club, said the SPV is simply a way for the government to continue public investments under a different guise. “[The government] promised Brussels that public investments would decline from 5.8 percent of GDP in 2011 to 3.8 percent in 2015. That means down from z∏.88 billion to z∏.53 billion,” he said. Mr Gomu∏ka said the investments planned would be no help to Poland’s struggling SME sector. “The projects are for big companies, because Polish Investments will be involved in projects worth z∏.250 to z∏.600 million.” But he does think the sec-

ArcelorMittal suspends production at Warsaw plant sold in Poland may come from illegal sources. The production in the steel-

works will be suspended for nine days, and in the rolling KW mill for 11 days.

Treasury Minister Miko∏aj Budzanowski says the next task is to come up with a list of potential investments ond part of the program, organized through the stateowned Bank Gospodarstwa Krajowego (BGK), could be

more “useful.” The Treasury aims to recapitalize BGK with z∏.40 billion by 2015. The money is to be used to extend

guarantees to SMEs that have problems obtaining financing. Remi Adekoya

Ciech sells chemical plant Polish chemical group Ciech will sell 99.62 percent in its phosphorus and chromium compound producer Zak∏ady Chemiczne Alwernia to Kermas Group, one of the world’s

largest chrome compound producers, for $13.4 million. The companies have already signed a preliminary agreement, but the acquisition is still subject to regulatory approval.

The sale of subsidiaries is part of the Ciech capital group’s restructuring strategy. In 2012, it sold its TDI production unit Zachem to the German chemiKW cal giant BASF.

Media patronage

KPMG Tax and Accounting Congress

COURTESY OF ARCELORMITTAL

The Warsaw unit of international steel producer ArcelorMittal has decided to temporarily suspend production at its steelworks and rolling mill as a result of the sharply decreasing number of orders for reinforcement bars used in construction. The company said that the decline is mainly due to illegal practices in steel trading in Poland and VAT fraud on imported reinforcement bars. According to the Polish Association of Steel Stockholders, 40 percent of reinforcement bars

REPORTER

But the z∏.40 billion that the SPV plans to spend may be less helpful than the government hopes

Orders for steel products have dropped sharply

Legal News

Making prices visible on products – draft changes On January 29 the government adopted guidelines for the amendment to the legislation on displaying prices on products. According to the guidelines, producers will no longer be required to put price tags on every single item they have on offer. This should lead to decreased production and trade costs for businesses. At the same time, the amendments should not infringe upon a consumer’s right to clear and unbiased information on product prices. The government anticipates the amendments should become binding by June 30, 2013.

Changes to the act on public offerings are getting closer On January 25 the Sejm adopted draft amendments to legislation on public offerings and on the regulations for introducing financial instruments to the organized trad-

ing system. Now the draft will be reviewed by the Senate. The amendments are to limit the scope of information that securities issuers are required to release. The new regulations should make it possible to increase the efficiency of the supervisory system over IPOs and to strengthen the security, transparency and public trust to the capital market as well as to better protect the interests of its participants, particularly of investors.

Exemption of court costs in bankruptcy proceedings On January 25 the Sejm adopted draft amendments to the bankruptcy and reorganization law. These will broaden the scope of entities exempt from the costs of court proceedings to all debtors eligible to file for bankruptcy. The draft of amendments has now been submitted for review to the Senate. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

VOURTESY OF KPMG

Contact: Miros∏aw Stefanik ms@pnplaw.pl

On January 15, KPMG successfully hosted the third edition of the Tax and Accounting Congress, which attracted CFOs, chief accountants, heads of financial reporting and controlling of the biggest Polish and foreign companies. Over 600 participants listened to lectures on the amendments to tax and accounting regulations and on the intricacies of the new rules. This year’s meeting was divided into two sections: tax and accounting. All the lectures were delivered by highly experienced tax advisors, legal advisors, and certified auditors who are partners and directors at KPMG. Additionally, the speakers presented the principles of testing asset impairment, the practi-

cal aspects of mergers and acquisitions, and accounting. They also reviewed the challenges a CFO must face both in good and in bad economy. In order to allow an even wider audience to participate in the event, the congress was broadcast online. The program of the congress also included expert consultations, which gave the participants an opportunity to ask KPMG representatives questions and discuss their individual tax and accounting-related problems. The consultations were very popular and mostly revolved around one of the subjects of the congress – the application of the new rules. ●

FINANCE & ECONOMICS

FEBRUARY 4-10, 2013

Macroeconomics

www.wbj.pl

Employment

GDP growth slows Over 100,000 hit by mass layoffs in 2012 to 2% in 2012 year, but analysts said the preliminary annual figure likely meant that the Polish economy grew by about 1 percent in Q4. In Q1, Poland’s GDP grew by 3.6 percent, in the next quarter it decelerated to 2.3 percent, and in Q3 it fell again to 1.4 percent. The last time GDP growth was lower than that was in the second quarter of 2009, when economic growth reached just 1 percent. A worrying trend for economists is Poland’s rapidly dropping consumer spending, which was widely seen as one of the main engines driving the country’s economy as it rode out the 2009 financial crisis as the only EU country not to go into recession. “Even though investments contracted in Q4 less considerably than we had feared (by

Poland’s economy grew at a rate of 2.0 percent in 2012, according to preliminary estimates released by the Central Statistical Office (GUS) last week. The figure represents a significant slowdown on 2011, when Poland’s gross domestic product grew by 4.3 percent. GUS said that the biggest reason behind the growth was an increase in net exports, while domestic demand and investments were not as strong as in previous years. GUS hasn’t yet released official GDP growth figures for the fourth quarter of last

only 0.4 percent y/y), the decline of consumer demand at the end of the year (-1 percent y/y) is a major disappointment and may herald a lower consumption path in the upcoming quarters,” economists at Bank Zachodni WBK said in an e-mailed statement. The economists said that they expect the economic cycle to bottom out in the first quarter of this year, followed by a gradual recovery with no threat of high inflation. “Although the GDP data were better than we expected, their general message is dovish due to really weak consumption,” they added. The data justify two further interest rate cuts in February and March by the National Bank of Poland’s Monetary Policy Council, they said. Andrew Kureth

Steep slide 5

4 *estimate 3

20 1

12 Q4

20 Q3

2 01 Q2 2

01 Q1 2

01 1

20 1 Q4

1 01

Q3 2

11 20

Q2 2

0 Q1

10 20

20 1 Q4

10 Q3

0 Q2

Q1 20 1

Q4 20 0

09 20 Q3

9 20 0 Q1

Q2 20 09

Source: Central Statistical Office, BZ WBK

RPP was unanimous in cutting rates in January meeting at which the RPP has cut interest rates by 25 points. The next meeting of the RPP is scheduled for February 5-6. Analysts expect the council to continue to cut Poland’s benchmark interest rate, which now stands at 4 percent. There is some uncertainty, however, since after the last meeting NBP president and

RPP chairman Marek Belka said that “this round of cuts is drawing to an end.” Nevertheless, analysts say recently released macroeconomic data (especially Poland’s GDP growth rate for 2012 at 2 percent) should convince the RPP to cut rates at least one more time before KW, JC pausing.

Inflation higher than wage increases in 2012 Last year inflation was 0.3 percentage points higher than the average increase in pay at Polish companies. “This is the first time in our history that this has happened,” Krzysztof Sedlak, director of Sedlak & Sedlak, a human resources consultancy, told Rzeczpospolita.

The sectors that were hit hardest by the decrease in wages were: construction, where salaries fell by 4.1 percent, IT and communications (3 percent), and pharmacy (2.6 percent). Those working in the transportation sector (excluding automotive) were luckier – their wages rose by 3.8 per-

cent. Analysts don’t expect the phenomenon to repeat this year. In 2013 the average increase in wages should outgrow average inflation. The Ministry of Finance predicts that in 2013 CPI could fall below 1.5 percent year-onJC year.

Poles are losing their jobs in droves worst year since 2003, when 123,000 employees lost their jobs in group layoffs. The Ministry of Labor is working on a proposal that

would see it co-finance workers’ wages for companies that have been hit by the economic slowdown. Jacek Ciesnowski

Polish budget for 2013 passed Poland’s budget law for 2013 was passed by parliament last week. The Sejm accepted amendments suggested by the Senate. These included increasing the credit limit for the Social Insurance Fund to

Poland’s GDP growth rate (%), Q1 2009-Q4 2012

The National Bank of Poland’s Monetary Policy Council (RPP) voted unanimously at its January meeting to cut interest rates by 25 basis points, according to the council’s official minutes, released last week. The council rejected motions to cut rates by 150 points and by 50 points. It was the third straight

According to figures through November 2012, 87,700 people lost their jobs as a result of mass layoffs last year, some 29,000 more than in 2011. Experts predict that because many companies continued to struggle in December, the final figure for the year will exceed 100,000. According to data provided by the Ministry of Labor, in October and November, 11,000 and 14,000 people lost their jobs respectively, as a result of their employers’ financial problems. If that trend continued in December (that data will be available in the beginning of February), 2012 would be the

SHUTTERSTOCK

The figure was widely in line with expectations, but worries remain over declining consumer demand

There have not been this many layoffs since 2003

z∏.12 billion and restoring the Church Fund, with z∏.94.3 million earmarked for it. By the end of the week, the budget law should be signed by the president. The budget law includes a

z∏.35.5 billion deficit, with expenditures not exceeding z∏.335 billion. GDP growth is set at 2.2 percent and average annual inflation is expected to reach 2.7 percent. KW, JC

INTERVIEW

www.wbj.pl

FEBRUARY 4-10, 2013

Politics

Janusz Piechociƒski, who late last year gained the posts of deputy prime minister, economy minister and leader of the government’s junior coalition partner, the Polish People’s Party (PSL), sits down with WBJ to talk about his vision for the party, differences between the coalition partners and why Poland opposes the adoption of a single European patent Ewa Boniecka: What are the roots of your desire to remodel PSL and build a centrist political entity in cooperation with small, conservative parties such as Poland Comes First and Solidarna Polska? Janusz Piechociƒski: I am disgusted with the sterility of Polish politics I have observed over the past months. Developments concerning the Smolensk disaster have been a real low point. Polish politics is in a deadlock and the wreckage of the Polish plane that crashed in Smolensk in 2010 is not just the wreckage of a machine but the wreckage of Polish politics. The dividing line currently existing on the Polish political scene between Civic Platform

and Law and Justice, leaving the rest out, should be, in my view, rejected in order to build a normal democracy and a better Poland. And such a debate should originate from the center of

darna Polska members, as well as other circles, is to establish a new political forum in the center of our political scene. Does that mean that you want to build a centrist political structure including the Polish People’s Party and those small opposition parties? I would like to underline that my initiatives are not proposals for political marriages between PSL and other parties. Our party has 117 years

“The dividing line in Poland’s political scene should be rejected in order to build a normal democracy and a better country.” the political scene, from all those people who wish to stress that what unites us is stronger than what divides us. I intend to initiate such a debate as the leader of the PSL. My proposal targeted at Poland Comes First and Soli-

of political experience, and our identity as a conservative and pragmatic party is wellestablished. But in my view the time is right to initiate the process of remodeling PSL, so that a national centrist party of Christian Social character,

like the CSU in Bavaria, may emerge. It is also the time to confront the ways of other parties functioning on the political scene, and to change the method of communication between politicians and society. My proposals aim to replace hostility with political rivalry. Rivalry which would not rule out cooperation in such areas as combating unemployment, supporting families, improving health care or defining Poland’s role in the European Union. There are many other serious problems in our country which need to be dealt with. And in my opinion, 2013 is a very good time for such fundamental debates, as no elections are planned for this year, while in 2014 the parties will focus on drawing up the lists of their candidates to the European Parliament. Do members and other leaders of PSL support your proposals for remodeling the party? The very fact that I have been elected leader of PSL and

ADAM KLICZEK/WIKIPEDIA

Piechociƒski sets his sights on changing his party, Poland’s economy, and its politics

Janusz Piechociƒski wants to change both his party and Polish politics

INTERVIEW

FEBRUARY 4-10, 2013

that I am the first party leader in 20 years to come from the academic community shows that my vision of transforming PSL from a mostly agrarian class-based party into a national Christian democratic party is perceived in the party as welcome and necessary. While promoting young members of the party, I apply transparent criteria of experience in public service, excellent educational background and high ethical standards. Our new leadership wants to transform our party into a national centrist party embracing both traditional values and the drive for modernizing the country. Polish rural areas are changing, their economic and cultural aspirations are growing, we have to win more urban voters, including entrepreneurs, academics and students. But in order to expand our voter base, we have to offer the broader political vision of a modern, conservative centrist formation. How does Civic Platform, your coalition partner, perceive your efforts to establish cooperation with conservative opposition parties? We are a reliable and honest coalition partner. Whatever is decided by the coalition, we implement. But in a democratic country, every politician can talk to and communicate with other politicians. Do I raise any objections when the Civic Platform leader and other party members meet and talk with other politicians? We are often prone to forget that democracy means basing politics on rational attitudes, on good human relations and on meaningful discussions about various problems. I want to stress that my relations with Prime Minister Donald Tusk are very good, and that I value the last two months of our cooperation in the coalition very highly. We are all aware that the coalition cannot be preoccupied with itself in the face of so many problems, and that we have to act effectively and rationally. I also wish to stress that we need to bring calm to the political scene instead of heightened tension. So, when Civic Platform’s parliamentary caucus came up with the proposal to try [Law and Justice leader] Jaros∏aw Kaczyƒski and [Solidarna Polska leader] Zbigniew Ziobro

before the State Tribunal, I stressed, on behalf of PSL, that I am distancing myself from such attitudes. PSL and Civic Platform differ in their approach not only to ethical issues, but also to some economic and social matters. How do you manage to reconcile those and work together? It is quite natural that we [PSL] approach certain ethical, social and economic issues in a different manner than Civic Platform does. At

“Poland also has to defend its economic interests, both at home and abroad.” the moment however, the government is focusing on dealing with economic difficulties, and in this field, our attitudes are aligned rather closely. While the Polish People’s Party has always promoted the idea of a social market economy and has favored imposing limits on privatization and market regulations, Civic Platform, just like some other liberal parties in Europe, is now beginning to increase the role of government in the economy – an approach adopted at a time when countries are fighting economic depression and unemployment. Now, when the world’s economy is at a crossroads and when many previously effective market regulations have ceased to work, we have to ask ourselves, in Europe, what economic patriotism is all about. We see that various governments defend the interests of their national economies, sometimes even in an aggressive manner, as evidenced by the Italian government’s pressure exerted on Fiat in order to force the carmaker to limit the production of cars in its factory in Tychy. Poland also has to defend its economic interests, both at home and abroad. So, I came up with the proposal to promote our economic patriotism. It has nothing to do with protectionism, which is harmful for all market players. My intention is to offer protection to our companies

Janusz Piechociƒski Janusz Piechociƒski was born in 1960 in Studzianki, about 75 km from Warsaw. He graduated from the Warsaw School of Economics and was first elected to parliament in 1991. On November 17, 2012, to the surprise of many, Mr Piechociƒski dethroned then-Economy Minister and Deputy Prime Minister Waldemar Pawlak as leader of the Polish People’s Party. On December 11, he officially took over Mr Pawlak’s position in the coalition government. ●

abroad, support the strategies of our entrepreneurs and businesses, but also to care for foreign investors within the framework of agreements. We need to support the growth and the wise internationalization of Polish entrepreneurship. We will be doing that within the framework of the Global Firm program – an initiative launched by the Ministry of Economy in January this year. We are not dealing with a recession in Poland yet, but the economic situation is very difficult. We are not satisfied, in economic or social terms, with an annual GDP growth rate of 1.5-2.2 percent. GDP growth below 3 percent means the majority of households will not experience any improvement in their situation. After a period of higher economic growth, the slowdown we are currently experiencing is even more painful. From the beginning you have opposed Poland’s acceptance of the European patent scheme. The government has recently decided not to sign the agreement. How do you feel about the decision? I am very glad that we are not signing the European patent agreement because its consequences would be harmful to our economy. Our firms are not ready to pay for such European patents – a solution that favors the most developed countries boasting a strong, scientific base. Poland has not been able to develop such a base and the level of our investment in scientific research and in translating its findings into economic outcomes is insufficient. Maybe in five or 10 years’ time our position concerning the European patent will be different, as we will have many successful scientists whose projects will be widely implemented in industry. A lot of time is required, however, to achieve such a position. For right now the number of Polish patents used by the industrial sector is very low. On the other hand, we have to be conscious that the Polish economy has to open to European patents in the long term, and we have to be properly prepared. I consider the link between science and industry to be of crucial significance. I am the first minister of economy who is appointing university chancellors as members of big coal corporations’ management boards – a move aimed at boosting the coordination between academia and industry. I also intend to speed up implementation of the Innovative Development program. Too many of our patents exist on paper, and too few specific projects are ready to be implemented throughout the economy. That trend has to be reversed. ●

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TRANSPORT & LOGISTICS IN FOCUS

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FEBRUARY 4-10, 2013

Infrastructure strategy

Poland will need billions to upgrade its road, highway and railway system By 2020, Poland will have 2,000 km of highways, 2,800 km of expressways and 350 km of modern railway track, enabling trains to move at speeds faster than to 160 km/h, according to the transportation development strategy adopted by the government last month. In comparison, at the end of 2010, there were 857 km of highways in Poland, 675 km of expressways and not a kilometer of high-speed railway track. The strategy states that in the upcoming years, the focus will be on completing infrastructure projects that have already been started, especially road building and investments in the railway system.

of the transport sector by creating a cohesive, balanced and passenger-friendly transport system, the document reads. “The challenges for Poland is to first of all make up for lost time in building, modernizing and renovating transport infrastructure,” the strategy announced. The document listed the second challenge as linking the road and railway networks of those cities driving Poland’s growth to cities that are poorer, and bringing them into the European transport system. “Only a cohesive network of highways, expressways and railways of a high standard, a developed airport network, sea ports and routes as well as a [well-developed] public transport system will help fully exploit the potential in Poland’s economy, education system, its science and culture,” the document reads.

Making up for lost time The main aim of Poland’s transport policy is to increase the accessibility of the country, to improve the safety of passengers and other travelers, and to improve the efficiency

Realistic goals? But can the government achieve the goals it has set for itself? “The highway and expressway goal is realistic but the rail-

SHUTTERSTOCK

Government lays out infrastructure priorities

The government’s strategy envisions building 350 km of high-speed railway by 2020 way target is not,” said Micha∏ Beim, sector analyst at the Sobieski Institute. “There is a lack of awareness about the need for sustainable transport in Poland. All the pressure on politicians regards roads, because Poles have bought cars and now want to drive on good roads with them,” Mr Beim said.

He pointed out that in 2011 the Polish government wanted to shift EU funding earmarked for railway development to road construction, but was rebuffed by Brussels. Mr Beim said that until now, Poland has used roughly 95 percent of the money it received in EU funds for road construction, whereas the figure stands

at “10-15 percent” when it comes to EU funds budgeted for Poland’s railway system. “They need to remember that the EU puts its focus on environmentally friendly transport systems,” said Mr Beim. He added that it was also important to wait and see how much infrastructure funding Poland would receive in the

2014-2020 EU budget. The strategy document also mentioned the need to direct more cargo from roads to railway tracks. Furthermore, it pointed out that Poland’s railway system had been neglected for years and that railway carriers offered a low level of service. Remi Adekoya

Traffic control

Warsaw has new speed cameras, putting drivers on edge The Warsaw city guard (stra˝ miejska) installed seven new multifunctional speed cameras on the streets of Warsaw in November 2012. The new installations sparked a public outcry among the Warsaw drivers and those from neighboring towns who commute to the capital. The new cameras, which cost over z∏.1.7 million in total, were placed on some of the capital’s most frequented streets: on ul. Pu∏awska near ul. Kuropatwy on the south end of the city, on Wis∏ostrada at the junction with ul. Karowa, at the RadzymiƒskaBystra intersection, on ul. Modliƒska past ul. Mehoffera in Bia∏o∏´ka, on ul. Powstaƒców Âlàskich near ul. Cz∏uchowska, on Al. Krakowska near Chopin Airport and on ul. Górczewska between ul. Konarskiego and the railway crossing. Within seconds of being taken, the photos from the cameras are sent via the inter-

net to traffic violations officers.

Location, location, location The guard’s spokesperson, Monika Ni˝niak told Gazeta Wyborcza that the sites chosen for the new cameras reflect statistics collected in previous years. “We analyzed data for the past three years collected by the Municipal Roads Authority, the police and our officers,” the guard’s spokeswoman said. The seven locations selected were approved by the Road Transport Authority. “In 2010-2011 there were three accidents [near the Wis∏ostrada-Karowa intersection], resulting in one death and five injuries. Apart from that there were 16 less-serious collisions,” Ms Ni˝niak said, adding, “We were surprised at how many speed violations were recorded at that site. As many as 667 were recorded within only seven days after the installation of the new camera. ... It only shows how badly needed this camera was.” There have already been several record-setting violations recorded by the cameras.

“The camera on ul. Radzymiƒska took a photo of a driver speeding at 160 kph, where the speed limit was 60,” Ms Ni˝niak said. In just one week the new speed cameras took 4,340 photos of drivers breaking the speed limit. On average this means each camera is taking an average of nearly 100 photos per day. The new speed cameras in Warsaw are part of a nationwide traffic control scheme implemented between August and December last year, which involved putting up 300 new cameras at the most accidentprone sites in Poland. The proceeds from the fines for speeding and other traffic violations are projected at z∏.1.5 billion annually. The money is to be spent on road infrastructure modernization and expansion.

Is it all about the money? Well-known Polish journalist Tomasz Lis began a public campaign against the new speed cameras, writing on his blog on news website Natemat.pl that

the installation of the new radars was a thinly veiled attempt at generating more revenue for state coffers, and had little to do with traffic safety. His criticism sparked a heated public debate between opponents and supporters of the new system. “Tomasz Lis drives too fast, just as he passes judgments and draws conclusions too quickly,” wrote Minister of Transport S∏awomir Nowak in an open letter. “That’s why his assessment is so superficial. I’d like to urge Mr Lis to slow down a bit.” Mr Lis’ debate with the minister continued on his talk show “Tomasz Lis na ˝ywo” on January 14 this year without any concessions from either side. On January 15 the Ministry of Transport released a new draft resolution on the location, signaling and gauging parameters of speed-recording equipment for public consultation. The new regulations would require that the placement of the cameras be evaluated every 40 months based on road-safety surveys. Beata Socha

SHUTTERSTOCK

More speed cameras down the road

The 300 new speed cameras installed between August and December last year could net some z∏.1.5 billion in fines annually

FEBRUARY 4-10, 2013

TRANSPORT & LOGISTICS IN FOCUS

www.wbj.pl

Airports

Modlin remains closed for larger planes Modlin Airport, which was opened just outside Warsaw last year after a rapid building process to accommodate tourists for the Euro 2012 soccer tournament, remains closed to most planes after Poland’s building inspectorate shut down parts of its runway in December. At the time, the inspectorate decided to close the thresholds at both ends of the runway, due to cracks and surface flaking. The thresholds are 500 meters each, meaning the total remaining runway length is only 1,500 meters. Larger planes used by the lowcost airlines that were flying into the airport, such as the Airbus A320 and the Boeing 737, need a longer runway. The airport’s management expects to reopen the facility for larger planes in April or May this year. In the meantime, it is investigating who is responsible for the runway’s faulty construction. It has announced that it will demand

compensation from the runway’s general contractor, Erbud, for the loss in revenue due to the closure.

‘Standards met’ But Erbud rejects accusations that it is at fault. A member of the firm’s management board, Józef Zubelewicz, said during a press conference in late January that “based on a preliminary analysis of the investment we have carried out, as well as an assessment of the quality of materials used, we rule out errors [on our part].” “That means the work was not done badly and cannot be the reason for the appearance of faults,” he added. Mr Zubelewicz said that samples of the runway’s surface taken after construction was finished indicated that all the necessary standards had been met. The company has now ordered its own analysis, expected to be completed within two or three weeks. He also raised the possibility that the cracks were due to the use of inappropriate chemicals to defrost the runway. “In the runway use permit it was clearly stated that it’s made of a blend of natural

COURTESY OF WIKIMEDIA COMMONS

Warsaw’s second airport continues to struggle with dangerous cracks in its runway

Modlin Airport aggregates and information about maintenance of the runway was provided,” he said.

‘You were informed’ Modlin’s management responded with a statement that said: “All of the substances used to maintain the runway are certified.” It also emphasized that on April 27, 2011 and May 4, 2011, the general contractor received

case, Erbud plans to shift all of the financial responsibility onto Czech subcontractor, DSH. Agnieszka G∏owacka, Erbud’s financial director, said that “all the costs of what has been done so far, including the cost of the thorough repair of the runway,” would be “transferred” to DSH. As the conflict drags on the main low-cost carriers

information about what kind of chemicals the airport planned to use for maintenance. The airport’s management has now demanded z∏.1 million in compensation from Erbud for loss of revenue. If the airport remains closed until the end of April, the claim could reach as high as z∏.20 million. If the airport wins its

who used the Modlin Airport – Wizz Air and Ryanair – are flying into Warsaw’s Chopin Airport instead. Due to costs incurred for compensating passengers for the inconvenience and for higher airport fees, Wizz Air announced that it would seek z∏.11 million in compensation from the management of Modlin Airport. Marta Mardosz

Logistics

SHUTTERSTOCK

Intermodal potential in Poland

For intermodal transport to work efficiently, a single container must be used throughout the entire process

Companies are capitalizing on the country’s underdeveloped combined-transport capabilities The flexible shipping system that allows logistics firms to use the most efficient combination of sea, road, rail or air currently accounts for about 10 percent of total freight val-

ues in the EU. In Poland, by comparison, this sector of the transport industry makes up a mere 2 percent. Why the staggering difference? It would seem that Poland’s geographic location is ideal for the wide development of intermodal transport with the country’s extensive, albeit still underinvested, railroad network and sea ports. But for the system to work properly, a single container

must be used throughout the whole process, meaning that appropriate logistics centers are needed along the way at train stations and sea ports to efficiently transfer the container from one mode of transport to another. This is the key area where Poland is still lacking.

Still too sparse The country’s needs have been identified and moves are

being made to resolve the issue, though. “You just need to take a good look and there is no doubt that a large and profitable market is waiting to be conquered,” said Janusz Górski, vice president of Laude.pl, which last year launched Centrum LHS ZamoÊç Boratycze, a logistics operation that accommodates intermodal transport. Laude.pl is expanding its services in mixed transport,

based on a combination of road, rail and sea channels. “With Poland’s crowded roads, rail is the optimal compliment in the country’s transportation chain,” Mr Górski said. Although still relatively small, the volume of intermodal transport has been steadily growing over the past two years. Tomasz Szmid, CEO of Balticon, a container and logistics company, has estimated that in 2011 the volume of goods shipped using combined transport increased by 30 percent over the previous year. The growth could have been even higher, he said, if it weren’t for years of neglect in developing new freight-rail connections. The current network of logistics terminals capable of supporting combined transport is too sparse and the available equipment insufficient. This makes rail transport, a key component in the intermodal cycle, too expensive and inefficient when compared to road transport.

What can be done? Mr Szmid wants the government to increase its role in

encouraging investment in new facilities and to take over control of railroad track-use fees, which are now set by national railway company PKP. He acknowledged that much is being done in terms of the modernization of rail infrastructure with the help of EU funds, but added that it would be helpful to coordinate such projects with businesses, to avoid work on a specific railroad line interrupting the flow of goods. Towards the end of 2012, Transport Minister S∏awomir Nowak presented the government’s plan for the modernization and revitalization of the country’s railroad infrastructure. According to the plan, the government will spend z∏.26.5 billion over the next three years on railroad modernization projects. An additional z∏.3.5 billion is slated for investments in rolling stock. Although much of the money will go towards the modernization of passenger-rail transport, the country’s freight network should also see improvements. It’s something logistics operators are counting on. Mark Ordon

COVER STORY

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Energa privatization to be halted? Poland’s Treasury is preparing the IPO of Energa, the country’s fourth-largest energy utility. However, the lack of legal regulations regarding renewable energy sources makes the company’s valuation difficult. The process of adopting renewable energy regulations in Poland has already been delayed for two years. Earlier in January, Energa’s CEO Miros∏aw Bieliƒski announced the IPO could take place by mid-2013.

Green certificates selling poorly Within the last year, the price of so called green certificates, which are designed to help increase the share of renewable energy in Poland, fell from z∏.283.51 to z∏.151.01 on the Power Exchange. The strongest fall was observed in the last few weeks. Market experts expect a further decline. ●

FEBRUARY 4-10, 2013

Exports

Polish brands need a push

Joanna Irzabek

Poland’s exports are growing, but promotion of the country and its products still leaves much to be desired Poland continues to increase its exports year after year, and the success is being led by Polish food products. Prince Polo wafers, Winiary mayonnaise, Jutrzenka candy, Dawtona cucumbers, Tymbark juices and Lajkonik breadsticks are flying off the shelves in the UK, the Polish Information and Foreign Investment Agency (PAIiIZ) boasts. Tesco’s “Taste of Poland” campaign put 75 new Polish food products on the British menu. Total Polish food exports to the UK reached €1 billion in November last year, a 19.3 percent rise year-on-year,

COURTESY OF INGLOT

Inglot’s nail polish is a hit in the Middle East according to data from Poland’s Economy Ministry. A quarter of Poland’s total produce goes abroad. That’s a

threefold increase since Poland joined the EU in 2004. But the results aren’t the effect of a particularly good

marketing strategy. Instead, the rising food exports to the UK are the effect of a weak z∏oty, a growing demand for

cheaper products, as well as an appetite for native tastes within the Polish community living there. But it’s clear that

COVER STORY

FEBRUARY 4-10, 2013

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COURTESY OF WIKIMEDIA COMMONS

UniCredit sells stake in Bank Pekao

Despite its problems, LOT is still one of the strongest Polish brands Polish foodstuffs are among the most internationally recognizable Polish brands (see story, p. 5).

Cosmetic success Other “made in Poland” products that have managed to gain ground abroad include furniture, chemical products, cosmetics, software, and even yachts. Exports of Polish cosmetics rose to z∏.7.6 billion last year, a 5 percent increase y/y, with Inglot leading the way. The PrzemyÊl-based cosmetics manufacturer’s rich assortment of blushes, nail polishes and lipsticks is available in over 300 stores in 46 countries on six continents, from Ukraine to Malaysia, Lebanon and Argentina. The company recently opened its first flagship store in New York. Geographically bold but stingy on marketing, Inglot’s expansion strategy relies solely on a franchise model with own-brand retail outlets in shopping malls. It seems to work: with 40 percent of its revenues coming from exports, Inglot is a record-setter among Polish companies selling abroad. Other cosmetics producers are following suit. Oceanic

exports its AA toiletries line to 25 countries, including Ukraine and the US. Dr. Irena Eris Cosmetic Laboratories, whose merchandise debuted on the US market in 1989, now sells hundreds of products in 30 countries (primarily Ukraine, Germany and Asia). Other companies that have already built strong brands at home, such as Ziaja and Dax Cosmetics, are planning further foreign expansion too.

Low-tech stigma Showcasing the “made in Poland” label may not always be a good marketing tactic, though, especially for Polish companies in hi-tech industries. “Having Polish roots might be an obstacle rather than advantage for innovative companies in the hi-tech or the medical sector,” said Piotr ˚ó∏kiewicz, vice president and CFO at MEDICALgorithmics, a mobile arrhythmia diagnostic technology provider. The company’s PocketECG device is used by several hundred medical centers in the US, where the firm earns more than 90 percent of its revenue. “Poland’s innovative tech-

nologies have yet to become universally recognized, so you have to work twice as hard to convince potential partners that you are better than your competitors,” said Mr ˚ó∏kiewicz. The Ministry of Economy recently carried out a survey on brand awareness and the perception of Poland’s products abroad as part of a new program for Polish brand promotion. The results were disheartening. Among the associations that German businesspeople, for example, came up with when asked about Poland were: dental services, cheap spas, vodka, sausages, amber, Polish car dealers and the Smolensk plane crash. With the exception of (troubled national airline) LOT and (vodka brand) ˚ubrówka, they were unable to name any Polish company or brand.

Continental drift Despite the obvious allure of developed economies, the geographical structure of Poland’s foreign trade has been slowly shifting away from Western Europe in favor of markets in Central and Eastern Europe, as well as more distant destinations.

Technological progress Even though the government’s survey found that Polish companies don’t exactly have a reputation for being cutting edge, Polish tech firms continue to aim high. Software solutions, as well as computer games, help promote Poland’s image abroad as the producer of luxury and hi-tech goods. “We are in the process of launching a data processing center in Germany. So far we’ve invested €12 million in the project,” said Janusz Filipiak, founder and chairman of the board at Comarch, a Kraków-based global IT business solutions provider. “This will allow us to improve our image in the German market.” Comarch invests heavily in innovation. Its

R&D expenditures amounted to z∏.103 million in 2011. “Developing your own technologies and patents is the only way to win foreign markets,” said Mr Filipiak. Other IT developers are also setting their sights on European and US markets. Oktawave, a new company dealing in hosting services and cloud computing, has noted a significant interest in their flagship product abroad. “Oktawave meets all the requirements for a professional cloud computing business, boasts faster response times and prices at roughly half of what our Western competitors charge,” said Dariusz Nawojczyk, the company’s marketing & PR director. ●

The shift might be a sign that Polish companies are searching for trade partners in markets with stronger growth than those in the crisis-stricken euro zone. “I often hear that the European market is very difficult. It’s a mature market with a long-established balance of power and key players. Surely, entering it is not easy,” said Krzysztof Przyby∏, president of the Teraz Polska foundation, which runs a competition for the most outstanding Polish products and services. “Economic patriotism” does not make things easier for Polish exporters either. “Purchasing decisions are often made based on emotional attachment to a native brand,” said Mr Przyby∏. Customers in countries such as Sweden or Norway often favor more expensive local products over cheaper imports. This makes non-European high-growth economies even more attractive, as a destination for Polish exports. But they too have certain barriers to entry.

Great wall China, Poland’s third-largest import market, seems to be completely in the dark about Poland’s export offer, the Economy Ministry’s productrecognition survey suggests. Some of the Chinese businesspeople surveyed didn’t even know that Poland has access to the sea. Others named Skoda cars as the only Polish brand that came to mind – though it’s actually Czech. In a publication due in a few days, the Poland-Asia Research Center (CSPA), in cooperation with PAIiIZ and as part of the governmentsponsored Go China pro-

gram, will highlight four Polish companies already present in the Chinese market: kitchen-fittings firm Ferro, building chemicals company Selena, food-products distributor Amber Foods and financial services firm Magellan Pro. “It’s a huge, competitive and demanding market that few Polish companies, other than the top 100, can even afford to enter,” said Rados∏aw Pyffel, CSPA’s head. “No government can change that,” he added. “A visit from the president, prime minister, or other minister can definitely go a long way in endorsing a product. But it cannot replace a good, innovative and price-competitive offer.”

Big players wanted So far Poland has been an attractive investment market, with its cheap and well-qualified labor among other strengths, but its export offer is still little known to the world. Experts say it lacks a tradition of successful economic policy as well as big players able to take on the big markets. The only Polish company on Fortune’s Global 500 is refiner PKN Orlen, ranked 297 on the list of the world’s largest corporations. Not a single Polish product made consultancy Brand Finance’s list of the world’s top brands. The outside world, however, seems interested in learning more about Poland and what it has to offer. Poland currently occupies 24th place on the list of Top 100 Most Valuable Nations and has managed to improve its reputation since joining the EU – even in the absence of a coordinated promotional strategy. ●

Italian banking group UniCredit announced that it sold a 9.1% stake in its Polish subsidiary Bank Pekao. But UniCredit retains a 50.1% stake, thus giving it control over its Polish subsidiary. UniCredit said it would not sell further stakes in Bank Pekao for at least a year. The bank confirmed that the shares were sold at a price of z∏.156 each, valuing the entire stake at z∏.3.7 billion. Bank Pekao regestered a net profit of z∏.798 million in the third quarter of 2012.

Kompania W´glowa to issue bonds Polish mining group Kompania W´glowa should receive the first proceeds from its planned bond issue in late February or early March, the company’s CEO Joanna Strzelec¸obodziƒska said. Kompania W´glowa will issue short-term bonds sometime in the next few weeks. The value of the issue will be anywhere from several hundred million z∏oty to over z∏.1 billion.

Ipopema buys German firm Ipopema, a Polish investment fund, has bought the Impress Group from German holding Constantia Industries. Impress is a producer of interior decoration materials. The company has eight locations worldwide. Its annual revenue amounts to about €255 million, generated mostly in emerging markets. Ipopema plans to make further acquisitions in the sector.

Getin-DnB Nord deal approved Financial regulators have approved Getin Noble Bank’s takeover of the retail section of DnB Nord. The transaction will be completed in the second quarter of 2013. DnB Nord’s retail business serves 35,000 clients, mostly in community housing and small and medium-sized enterprises. ●

OPINION & ANALYSIS

FEBRUARY 4-10, 2013

Tusk held hostage

Remi Adekoya

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rime Minister Donald Tusk has a problem on his hands. Last Friday, 46 MPs from his Civic Platform (PO) voted against their own party’s legislative proposal to legalize civil partnerships. This happened because a group of strongly conservative PO MPs, led by Justice Minister Jaros∏aw Gowin,

“Right now there is no visible leader of the liberal faction in PO and the conservatives are running riot.” consider the civil partnership institution a mere precursor to what they believe homosexuals are really after – legalized gay marriage. And this the conservatives are not ready to accept under any circumstances. Speaking in parliament, Mr Gowin, in the presence of the prime minister, said PO’s legislative proposal was unconstitutional since mar-

riage is legally defined as a relationship between a man and a woman. Prime Minister Tusk promptly reprimanded his minister, saying he was just expressing his opinion and not the government’s position. But the damage had been done. The public had heard the justice minister saying the government he served in was proposing unconstitutional legislation.

members who feel disaffected because the PM treats them as mere voting machines without giving them any say in party decisions. So it is speculated that if Mr Gowin were to leave PO, or be thrown out, he might take up to 40 MPs along with him. It is unlikely that many MPs would take such a risk. But even if, say, five of them did quit the party, the coalition would lose its parliamentary majority and be faced with snap elections. To avoid that, Donald Tusk would then be forced to co-opt the unpredictable Janusz Palikot and his party, Palikot’s Movement, into the coalition government. But Mr Palikot is highly volatile and a coalition with him would be one full of political land mines.

A pain in the neck It is now obvious to those who might not have noticed earlier that Jaros∏aw Gowin considers himself the safeguard of conservative principles in PO and is ready to stand up to the prime minister on the issues. And while in the past those who have dared question Mr Tusk’s leadership in PO have been swiftly marginalized, the PM is something of his justice minister’s hostage today. If he relieves the minister of his duties, Mr Gowin is likely to start making mischief among the party ranks. And there is a sizable number of strongly conservative MPs in PO, as well as a significant number of

A badly needed counterbalance Coincidentally, Janusz Palikot used to be a PO member and the leader of the liberal faction in that party before he decided to go it on his own. When Mr Palikot was in PO, he served as a counterbalance to Jaros∏aw Gowin,

keeping him and his conservative allies at bay. But right now there is no visible leader of the liberal faction in PO and the conservatives are running riot. What’s worse – from the point of view of PO’s liberal supporters – the conservatives are the face of the ruling party today. It should be noted that Mr Tusk himself is ideologically closer to the liberals than the conservatives in PO, but needs both groups to maintain the eclectic, all-inclusive image his party strives to create. It’s an image that got them roughly 40 percent of the vote in the last parliamentary elections. But there is also another player in the world of PO politics, a man who might have been forgotten by some but who could still play a major role in the ruling party’s internal machinations. Grzegorz Schetyna was once interior minister and parliamentary speaker before being sidelined in humiliating fashion by the prime minister last year. Today, he is lurking in the shadows, still deputy leader of PO, biding

his time and waiting for Donald Tusk to slip up. An eventual breakout of conservative MPs from PO (or the mere threat of it) would cause confusion and chaos in the party, and Mr Tusk could lose his leadership position were Mr Schetyna to team up with Mr Gowin to dethrone him. And so despite the fact that Jaros∏aw Gowin made him look bad in public, Mr Tusk has to play it cool and wait for the right moment to deal with the justice minister. He will, however, have to shut down Mr Gowin eventually if he does not want PO to be perceived as a strongly right-wing party, destined for 25 and not 40 percent support. But Donald Tusk has shown before that he is a patient and unforgiving man. Grzegorz Schetyna also looked invincible in the party just before the PM clipped his wings. Mr Gowin’s days are numbered, too. ● Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Chronic Europe E

urope’s great success in 2012 was to avoid becoming another of history’s failed monetary unions. European Central Bank President Mario Draghi’s actions prevented a market meltdown and bought European leaders time to deliver on political and institutional reform. But have political leaders again chosen to muddle through, rather than meld a resilient strategy? To be sure, few envisioned the degree of compromise and integration that was achieved during the acute phase of Europe’s financial crisis. Control mechanisms that theoretically infringe on sovereignty are now in place for national budgets and, soon, for the 150 or so largest European banks. Creation of the European Financial Stability Facility and its successor, the European Stability Mechanism (ESM), provide an important financial backstop for smaller countries that are destabilized by external shocks.

Twin bazookas But the real game-changer has been the ECB’s creativity in designing ways to prevent the sudden insolvency of banks and governments. While it might take military expertise to learn all of the

acronyms created in the last three years, the LTRO (long-term refinancing operation) and OMT (outright monetary transactions) will be remembered as the ECB’s twin bazookas. Nonetheless, while bazookas may win battles, they do not win wars. This is particularly true in finance, because markets, politicians, and citizens adapt to changing circumstances. The success of 2012 was to end the acute phase of the crisis; but its chronic features persist.

“One of Europe’s great strengths has been to bind together large and small, rich and poor.” Of course, capital markets have reopened to large corporations and many European banks. Europe “feels” better. But it is rarely wise to judge financial health by one’s borrowing costs, which can change abruptly. Together with other major central banks, the ECB has ensured that any doubts about solvency have been temporarily put to rest with a tsunami of liquidity.

A wobbly stool The European Council’s decisions in December defined the vision outlined by Mr Draghi last July. But European leaders rejected even limited fiscal risk-sharing in the form of temporary unemployment contracts. The banking union was left looking like a stool with one sturdy leg (common supervision), a toothpick (common resolution), and no third leg (common deposit insurance) whatsoever. The creditor countries, seeking to define legacy assets narrowly in order to minimize their losses, are emasculating the most important vehicle for breaking a vicious feedback loop between sovereigns and banks – direct bank recapitalizations with ESM funding. The most creditworthy European countries still believe that a monetary union can work only if every member is committed to responsible macroeconomic policies that avoid the accumulation of imbalances. There is a powerful logic to this argument, given that a union in which some states’ conservative taxpayers always pay for others’ profligate spending cannot endure politically.

The imbalance build-up Nonetheless, in a world of fast and

Gene Frieda

free capital flows, Europe’s leaders have failed to grasp that control mechanisms cannot prevent the build-up of imbalances. After all, one of Europe’s great strengths has been to bind together large and small, rich and poor, and labor-intensive and services-intensive countries. Despite their differences, all are subject to the same monetary policy and, at least according to the current vision, to very similar (and rigid) fiscal policies. That vision involves miniscule fiscal transfers to help buffer the asymmetric effects of common shocks. Instead, a group of regulators in Frankfurt and bureaucrats in Brussels will catch imbalances before they become severe. For Europe’s periphery, this minimalist vision of fiscal integration means one thing: government and private debt will need to fall to levels associated with the AAA-rated economies, because external financing for persistent imbalances cannot be assured. Even if monetary policy remains extremely accommodative (despite being inappropriately loose for some of the healthy economies), this implies decades of stagnation for the periphery and the transformation of high longterm unemployment into a lost generation of chronically jobless youth.

Clear prescription Acute crises rarely produce political movements demanding change. On the contrary, fear prevails and the status quo – in this case, European integration – wins, as it has since 2010 in Greece, Spain, Portugal, Ireland, and the Netherlands. Rather, it is the chronic phase of the crisis that will breed change, as fear gives way to anger and politics moves to extremes. The prescription is clear: fix the banks, share the burden of past mistakes between countries, and replace the OMT with an equivalent bazooka by turning the ESM into a rescue fund that can cope with problems large and small. The planned shift to a bail-in regime for private creditors and political acceptance of default for errant sovereigns will probably end fiscal profligacy. But Europe’s saga will not end there. Having escaped markets’ wrath, politicians will now face that of their voters. ●

Gene Frieda is a global strategist for Moore Europe Capital Management. Copyright: Project Syndicate, 2013. Project-syndicate.org

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The government will subsidize passive and energy-efficient houses and apartments

Angel Poland Group is revitalizing a former convent and making a penthouse out of a chapel

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

Skyscrapers

Schoenherr leases at Le Palais

The Intraco building will be gone by 2016, and a new skyscraper will go up in its place in 2019 Polski Holding NieruchomoÊci (PHN) is planning to demolish Warsaw’s Intraco building, one of the capital’s first skyscrapers and a landmark on the map of the city’s central ÂródmieÊcie district. In three years, the 138-meter, green, glass-layered scheme at the intersection of ul. Stawki and ul. Andersa will be destroyed. PHN, which is preparing to debut on the stock exchange within the next couple of weeks, will start the demolition process in 2016 and build a new 28,000sqm skyscraper on the site. The project will cost some z∏.270 million to construct, and will be developed in two phases. The first phase is due to finish

JLL to sell Sheraton Kraków

Hotel operator Orbis Group will add 10 hotels to its portfolio in 2013 and plans to manage a total of 90 hospitality facilities by 2015. Orbis Group has already signed contracts for franchise or management of five facilities. ●

In this issue Intraco to be demolished . . . .15 Poland’s greenest building . . .15 Passive house subsidies . . . . .16 Investment market . . . . . . . . . .16 Angel Wawel . . . . . . . . . . . . . . . .18 Warsaw Spire . . . . . . . . . . . . . .18

The Intraco building is one of the oldest skyscrapers in Warsaw Over the last few years the owner of the building – Intraco SA, a member of the PHN group – has renovated its interi-

ors, modernizing elevators and the main lobby. PHN was created in 2011 by pooling together 180 state-

owned real estate holdings. The intention was to increase consolidation in the sector. Karolina Kowalska

Residential development

Ultra eco-friendly building to be developed in ˚oliborz When it’s completed in 2014, the ul. Krasiƒskiego 41 development will already meet standards academics hope are in place by 2030

COURTESY OF FORT KRASI¡SKIEGO

Orbis Group to add 10 hotels

in 2015 and will consist of the construction of a six- to eightstorey office scheme, situated on the site of the current parking lot. It will comprise 10,200 sqm, with 8,800 sqm in leasable office space and 1,400 sqm in retail space. In the second phase, scheduled to start in H2 of 2016, the Intraco building will be demolished and construction on a new building will begin. The new development will comprise 28,000 sqm with 26,500 sqm of gross leasable area. It is scheduled for completion in Q1 2019. The 39-storey Intraco building is one of the oldest skyscrapers in Poland, built in 1975 by Swedish developer Byggnadsproduktion AB. It comprises 31,500 sqm and an underground parking lot with 200 spaces. The building underwent extensive renovation in 1998.

COURTESY OF PHN

Landmark Warsaw high-rise to be demolished

Law firm Schoenherr has leased over 700 sqm in the Le Palais office complex, situated on ul. Pró˝na in the heart of Warsaw’s pre-war Jewish quarter. Schoenherr will start leasing office space in the revitalized 19thcentury building in September. The pre-war tenement houses in ul. Pró˝na were recently renovated and refurbished by developer Warimpex.

Jones Lang LaSalle Hotels & Hospitality Group has been appointed exclusive agent to sell the freehold interests in the five-star, 232-guestroom Sheraton Kraków. JLL will also be the agent in the sale of the five-star 245guestroom Hilton Sofia. The Sheraton Kraków Hotel is located on the bank of the Vistula River, near Wawel Castle, 10 minutes from the Market Square and the Old Town.

FEBRUARY 4-10, 2013, LI 18/04

The four-storey building will offer 70 apartments from 33 to 103 sqm in size

Fort Krasiƒskiego, a special purpose vehicle belonging to developer Fort Development, recently launched construction on its ul. Krasiƒskiego 41 scheme in Warsaw. The developer is touting the project as Poland’s most eco-friendly. The investment, scheduled for completion in Q4 2014, is supposed to be a model “ecobuilding” of the future. Scientists from the Building Research Institute and the civil engineering department at the Silesian University of Technology have designated the ul. Krasiƒskiego development as a Multi-Dwelling Urban Building 2030 (MBJ

2030). The designation means that the development contains construction, materials and systems solutions that are energy-efficient, environmentally friendly and user-friendly. The standards were established by architects from Galicki Sypniewski Architekci studio, working closely with specialists in civil construction, acoustics, architecture, installation, renewable energy and engineering. The group hopes the standards will be universally accepted and applied in most new buildings by 2030. Situated in the southern part of Warsaw’s ˚oliborz district, the four-storey invest-

ment will offer 70 apartments comprising from 33 to 103 sqm, as well as six retail areas. It will provide easy access to the center of Warsaw and will be located just a short distance from the Arkadia shopping center and the Dworzec Gdaƒski subway station. Prices for apartments in the development range from z∏.7,000 to z∏.9,000 per sqm and a space in the parking lot will cost between z∏.35,000 and z∏.50,000. Among the projects Fort Development has completed is the Ostoja housing estate in Józefos∏aw, near Warsaw. Karolina Kowalska

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FEBRUARY 4-10, 2013

Residential investment

With the government subsidies for passive and energy-efficient houses and apartments, Poles may save up to z∏.50,000 A soon-to-be implemented government incentive program will grant subsidies of z∏.50,000 to those who build or buy “passive houses” which are more energy efficient than traditionally built homes. Subsidies of z∏.30,000 will be granted to those building or buying other types of energyefficient houses. The subsidies are to be granted by the National Fund for Environmental Protection and Water Management. Buyers of apartments in a passive or energy-efficient building will be entitled to z∏.16,000 and z∏.11,000 respectively. The program should be implemented later this year and aims to promote construction solutions that will eventually become enshrined in Polish law by 2020. The subsidies will be granted to investors, home buyers and landowners who take out a mortgage to purchase or finance the construction of such a residence. The fund is currently in

talks with seven banking institutions that are willing to offer the subsidized mortgage loans. Among them are Bank Ochrony Ârodowiska, Bank Polskiej Spó∏dzielczoÊci, Bank Zachodni WBK, Deutsche Bank, Getin Bank, Nordea Bank and SGB-Bank. The fund plans to spend z∏.300 million over the next three years. Engineers appointed by the Polish Bank Association will review building blueprints before the subsidy is granted. Beneficiaries can also expect inspections within three years after the project is completed, to verify if their building meets the requirements set forth by the fund. The government program precedes the implementation of EU guidelines for energy consumption, according to which all houses built after January 1, 2020 will have to comply with the new EU energy consumption standards. “We want to encourage Poles to build environmentally friendly houses, while at the same time educating them about energy-saving opportunities,” said Witold Maziarz, the fund’s spokesperson. “Poles aren’t particularly energy-conscious and a lot of peo-

ple don’t realize how much money can be saved on energy bills. We would like to show them that saving energy is not only good for the planet, but also for their wallets,” Mr Maziarz added.

What is ‘passive’? Passive houses get their name from passive energy gains due to highly efficient thermal insulation and heat recovery systems. Energy sources for passive houses include the sun, their occupants and household appliances. They have little need for an active heating system, as they consume less than 15 kWh per sqm of space, while other energy-efficient houses generally consume 40 kWh a year. All that adds up to energy savings of 60-80 percent compared to the average energy consumption in traditional buildings. With passive technology, the amount of heating power required is so small that a 20sqm room can be heated using 10 tea lights or the body heat of four people, even in harsh winters. Energy is also conserved by eliminating the so-called “thermal bridges” through which houses lose heat, such as bay

windows or balconies. Windows, responsible for more than 25 percent of heat loss in traditional homes, are located on the south side of the building while the north, east and west sides should be practically windowless. An ideal passive house is igloo-shaped, has no balconies, pillars or bay windows and its windows do not open, so as not to interrupt the mechanical ventilation system. Houses that are designated as merely “energy efficient” (as opposed to “passive”) allow architects more leeway in terms of building design or ventilation type.

Young, wealthy, and green The fund is very optimistic about its subsidy program. According to an opinion poll it ordered, most of landowners and building contractors said they would decide to build energy-efficient and passive houses when the subsidies kick in. The fund has secured enough money to help construct 12,000 houses and is ready to further increase the financing. Architect Tomasz Mielczyƒski, co-owner and founder

COURTESY OF BUILDGREEN

New government subsidy program could bring boom in eco-friendly homes

Passive houses can achieve up to 80 percent energy savings compared to traditional houses of the Buildgreen design studio, which specializes in energy-efficient houses, claims the program will be a success. “All the developers I talked to ... were interested in building passive and energy-efficient houses, given the government subsidy program,” said Mr Mielczyƒski, whose Poznaƒbased studio has already completed 18 eco-friendly houses, six of them passive houses. He said that by making his projects as varied as possible, he is trying to show that passive houses don’t have to be ugly or

mundane. His clients are mostly young, affluent people between 30 and 40, who pay a lot of attention to maintenance expenditures. “They are aware of the money-saving capacity of such buildings and are even more eager to build passive houses when they realize that the cost of heating a 160-sqm space may be as low as z∏.650 a year, while a traditional house can consume z∏.1,000 worth of energy per month,” said Mr Mielczyƒski. Karolina Kowalska

Economy

Polish investment market to remain active in 2013 It could see a strong recovery in 2014 as well A gradual recovery in economic performance and business confidence this year will set the European real estate market up for a stronger recovery in 2014, CBRE experts predict in their latest report. They add that Poland was among the strongest perform-

ers in terms of economic growth in Europe in 2012, which reflects positively on the performance and prospects of the Polish property market. “Improving sentiment and better fiscal stability within the euro zone is having a quiet but positive knock-on effect in Poland, a country that in itself is one of the brighter spots on Europe’s economic map,”

said Colin Waddell, managing director at CBRE for Poland. “It may not be overly visible in 2013 but we anticipate economic confidence to steadily build as we draw closer to 2014 and beyond. The current healthy levels of occupier activity in the industrial and office sectors are likely to remain and consequently investor interest in Poland will continue.”

While office take-up across Europe was around 7 percent down in 2012 compared with the previous year, in Poland it rose by 9 percent, due to occupier activity both in the Warsaw as well as in the regional agglomerations, mostly Kraków, Wroc∏aw and the Tri-city. In the retail sector, global players continue their expansion, with 20 percent of them looking to open more than 30

stores in 2013. Poland comes in fifth among the markets named as their key targets for expansion in Europe, and with a total of approximately 140 stores planned to open around the country in 2013, Poland scores third after Germany and Spain in terms of the overall expansion potential. In Poland, as well as in Europe, the theme of polar-

ization is a prominent feature of the retail market, with retailer demand heavily focused on the best quality prime space in the largest cities. With a limited supply of new space in the most desired projects, in 2013 retailers will continue to find it difficult to secure the right type of space in their target locations. Karolina Kowalska

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LOKALE IMMOBILIA – REAL ESTATE

FEBRUARY 4-10, 2013

Residential

The Angel Wawel development will see a 16th-century nunnery turned into residences

COURTESY OF ANGEL WAWEL

Real estate investor Angel Poland Group will soon launch construction and refurbishing on a luxury residential estate called Angel Wawel, located within an old monastery in the heart of Kraków, near the city’s historic Wawel Castle. The development will comprise 235 apartments, ranging from 20 to 253 sqm. Thirty-nine of these will be located in the 16th-century Koletki Sisters convent, which the company plans to

revitalize. The other 196 will be located in the new building adjacent to the monastery. The new building will match the height of the refurbished convent, at six storeys. The scheme, located between ul. Koletek and ul. Dietla, the latter of which leads to Kraków’s historic Kazimierz Jewish district, is scheduled for completion in Q4 2015 and is being touted as one of the most luxurious estates in Kraków. The average price per sqm is z∏.15,000, although the apartments in the historical buildings will likely sell at a higher price. All the apartments will

The 600-sqm penthouse in a former chapel could cost as much as z∏.20 million

have underfloor heating, as well as air-conditioning and ventilation systems. The most prestigious unit, in the former chapel of the monastery, could go for as much as z∏.20 million after the refurbishing is completed. The chapel comprises 600 sqm and is built in the shape of an equilateral octagon. Its walls and wooden dome are covered with polychrome decorations. The paintings, by Jan Bukowski, the famous creator of the Mariacki Church polychromes, date to before World War II. The images in the upper parts of the walls depict a heart with a crown of thorns and symbols of the seven deadly sins. The chapel penthouse, which is to be furnished and maintained in accordance with requirements set by the city’s historical curator, will be one of the most unique living spaces in Poland. The renovation of the Angel Wawel residential estate, estimated at approximately z∏.200 million, will be financed by BRE Bank. It took the developer nine years to obtain all the necessary permits for the investment. The investor is now selecting a general contractor. The Angel Poland Group was established in 2003. To date it has completed a number of high-class projects: OVO Apartments and Angel Wings in Wroc∏aw, Wilanów One in Warsaw and Angel City and Angel Plaza in Kraków. Karolina Kowalska

COURTESY OF GHELAMCO

Kraków to get luxury apartments in former convent near Wawel

Warsaw Spire will eventually offer some 100,000 sqm of modern office space

Skyscrapers

Ghelamco steps up work on Warsaw Spire With excavation work completed, construction on the signature building’s foundations is now underway Construction on one of the largest skyscrapers to eventually grace the capital’s skyline is progressing apace, with the first stages of the construction on the foundations of Warsaw Spire being completed toward the end of January. Excavation was completed in December – some 230,000 cubic meters of earth was dug up to make space for the building’s underground floors. “We should complete the construction of the first underground wing in May and the rest of the [underground] wings should be completed in late summer,”

said Krzysztof Owczarczyk, the construction site’s supervisor. Belgian developer Ghelamco’s flagship commercial investment in the Polish market will consist of a 220meter, 49-storey skyscraper and two lower buildings, reaching 55 meters each. The lower structures are scheduled for completion in the fall of 2014 and the tower will be delivered a year later. The scheme, located between Warsaw’s ul. Grzybowska, ul. ¸ucka, ul. Towarowa and ul. Wronia, has been designed in line with BREEAM certification requirements. The three buildings will comprise approximately 100,000 sqm of modern office space that is already attracting tenants. EU border guard agency Frontex signed a leasing contract for

approximately 14,600 sqm of space in Warsaw Spire. Ghelamco is in talks with another five potential tenants that could take up as much as 50,000 sqm. Over the last 20 years Ghelamco Poland has delivered 375,000 sqm of office and warehouse space to the Polish market. Ghelamco’s Senator office building, near the capital’s Plac Bankowy square on ul. Bielaƒska and comprising over 400,000 sqm of office and warehouse space, was recently put up for sale and Ghelamco is negotiating with a potential buyer. The developer is also proceeding with the construction of its Marynarska 12 and ¸opuszaƒska Business Park investments in Warsaw. Both are scheduled to be delivered this year. Karolina Kowalska

THE LIST

FEBRUARY 4-10, 2013

www.wbj.pl

Construction & Real Estate

Warehouse Space Developers Ranked by investments completed in 2012 A guide to Polish business and industry

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Rank

Investments completed (sqm) Company name Address Tel./Fax E-mail Website

Warehouses: 2012 / 2011 / 2010 / 2009

Warehouses: Overall

Largest investments recently completed (name, location, completion year, usable area - sqm)

Warehouse construction: For lease / For sale

Total number of employees / Year founded in Poland

Top local executive / Title

Gas heating systems; skylights and smoke vents; ESFR sprinkler systems; light intensity in Warehouse space leasing and accordance with the law; clear selling; facility management; asset height of 10 m; concrete management; free development structures; column grid - 12 m / transactions; build-to-suit; 22.5 m; jointless floors; 5 t/sqm buildings commercialization load floors; mechanical ventilation; steel roof structure

✓ ✓

60 2005

Robert Dobrzycki

Warehouses; production facilities; class-A warehouses with freezer areas

Warehouses and production facilities rental; turnkey projects; full logistics parks service

✓ ✓

WND 1999

Michael Shapiro

Built-to-suit facility for Decathlon (SEGRO Business Park Gliwice, 2012, 32,000); modern cross-dock Spaces for lease in logistic and terminal (SEGRO Business Park industrial parks including modern ¸ódê, 2012, 7,600); specialist high storage, cooler units and BTS warehouse for ˚abka Polska specialist production facilities (SEGRO Industrial Park Tychy, 2012, 18,900)

Construction of high-class warehouses and production facilities; property management

✓ ✓

27 2006

Business Unit Director Central Europe

✓ ✓

57 1997

Managing Director CEE

Type of warehouses constructed

Services offered

Panattoni Europe (Panattoni Poland Sp. z o.o.) ul. Emilii Plater 53, 00-113 Warsaw 1 22 540-7171/22 540-7170 plinfo@panattoni.com www.panattoni.pl

250,000 165,000 230,000 100,000

1,635,000

Panattoni Pilkington BTS (Tarnobrzeg, 2012, 35,000)

MLP Group ul. 3 Maja 8, 05-800 Pruszków 2 22 738-3010/22 738-3019 marketing@mlp.pl www.mlp.pl

76,300 82,000 68,000 WND

WND

SEGRO Poland Sp. z o.o. Pl. Andersa 5, 61-894 Poznaƒ 3 61 850-5300/61 850-5301 poland@segro.com www.segro.pl

70,500 52,000 124,000

Prologis ul. Z∏ota 59, 00-120 Warsaw 4 22 218-3600/22 218-3601 info-pl@prologis.com www.prologiscee.com

18,665 19,110 WND 364,840

WND

Prologis Park Janki DC3 (Soko∏ów, 2012, 18,665)

AIG/Lincoln Polska Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw NR 22 564-5000/22 564-5085 office.warsaw@aiglincoln.com.pl www.aiglincoln.com.pl

WND WND WND WND

WND

✓ ✓

WND 1997

Brian Patterson

CA IMMO Real Estate Asset Management Poland Sp. z o.o. ul. Emilii Plater 53, 00-113 Warsaw NR 22 540-6540/22 540-6541 warsaw@caimmo.com www.caimmo.com

39,000 32,000

WND

Logistic parks; class-A warehouses with freezer areas; high storage

Warehouses leasing; build-to-suit

✓ ✓

45 2002

Andrzej Miko∏ajczyk

Platan Group Sp. z o.o. ul. Poleczki 23, 02-822 Warsaw NR 22 545-0245/22 545-0246 pg@platangroup.com.pl www.platangroup.com.pl

WND

High storage

Project management; accounting and financial services; marketing; technical management; operational management

✓ -

49 1995

Karolina Kaim

PPMB Promont ul. Metalowa 3, 43-100 Tychy NR 32 720-5300/32 217-0567 promont@promont.eu www.promont.eu

WND

72,700

Logistic parks; freezer areas; high storage

Logistics

✓ -

100 1996

Sylwester Baradziej

Problem Sp. z o.o. ul. Przasnyska 6B, 01-756 Warsaw NR 22 866-4444/22 866-4440 info@problem.com.pl www.problem.com.pl

8,000

WND

Magazyn nr 4 (Pruszków, 2009, 9,000)

WND

✓ ✓

19 1988

Andrzej Pazera

Torus Sp. z o.o. Sp.k. ul. Arkoƒska 6/A4, 80-387 Gdaƒsk NR 58 764-6376/58 764-6311 torus@torus.gda.pl www.torus.gda.pl

523 -

WND

Arkoƒska Business Park A5 (Gdaƒsk, 2010, 7,450)

WND

Build-to-suit

✓ ✓

40 2002

S∏awomir Gajewski

552,300

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in January 2013. Number of employees is as of January 2013. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

BTS building; class-A warehouses; light industry space; high storage; Land selection and acquisition; 5 t/sqm floors; ESFR sprinkler build-to-suit; facility management systems; ground floor loading docks; 35m deep maneuverable areas

Managing Partner CEE

President

Magdalena Szulc

Ben Bannatyne

Managing Partner

Managing Director

President

Director

President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2012, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

MARKETS

www.wbj.pl

FEBRUARY 4-10, 2013

Stocks report

world stock indices DJIA

NASDAQ

13,860.58 (Jan 31 close)

S&P500

3,142.13 (Jan 31 close)

0.25% (for the week)

FTSE100

1,498.11 (Jan 31 close)

0.38% (for the week)

DAX

6,276.90 (Jan 31 close)

0.22% (for the week)

0.19% (for the week)

Continued uneasiness

NIKKEI 7,776.05 (Jan 31 close)

11,138.66 (Jan 31 close)

0.36% (for the week)

4.88% (for the week)

CHANGE: 3.34% (year to Jan 31)

CHANGE: -1.71% (year to Jan 31)

CHANGE: 2.44% (year to Jan 31)

CHANGE: 4.14% (year to Jan 31)

CHANGE: -0.04% (year to Jan 31)

CHANGE: 4.22% (year to Jan 31)

52-week high: 13,970.00

52-week high: 3,196.93

52-week high: 1,509.94

52-week high: 6,354.50

52-week high: 7,871.79

52-week high: 11,145.40

52-week low: 12,035.10

52-week low: 2,726.68

52-week low: 1,266.74

52-week low: 5,229.80

52-week low: 5,914.43

52-week low: 8,238.96

Andrew Nawrocki WBJ market analyst It has been a poor start of the year for Polish blue chips, with the WIG20 down nearly 5 percent as we enter February. More so than their Western peers, Polish equities are being weighed down as investors remain cautious in the face of global unease. Investors hoped for a rise last Monday after a previously poor week, to little avail. The loss of appetite was felt in the Polish bond markets as well, with Polish treasuries experiencing a sluggish day. The WIG20 was one of the worst performers in Europe, down 0.82 percent, while the overall WIG lost 0.61 percent. The mood mildly improved on Tuesday, with the WIG20 gaining only slightly, up 0.11 for the day, out-performing a laggard WIG which closed flat, and a

Major indices WIG

46,840.15 (January 31 close)

WIG20

2,492.76 (January 31 close)

31.01

30.01

29.01

28.01

25.01

24.01

23.01

22.01

21.01

18.01

17.01

16.01

15.01

31.01

30.01

29.01

28.01

25.01

24.01

23.01

22.01

21.01

18.01

2,400

17.01

46,000

16.01

2,460 15.01

46,400

14.01

2,520

11.01

46,800

10.01

2,580

09.01

2,640

47,200

08.01

47,600

07.01

2,700

04.01

48,000

14.01

52-week low: 2,035.80

11.01

Change year to January 31: -5.08%

10.01

52-week low: 36,653.28

09.01

52-week high: 2,628.36

Change year to January 31: -2.64%

08.01

Change for the week: -2.95%

07.01

52-week high: 48,222.72

04.01

Change for the week: -2.30%

Top 5 REMAK KCI ENAP LUBAWA WARIMPEX

Closing 26.00 0.63 1.32 0.83 6.05

% change (week) 52-week high 29.94 35.00 26.00 0.90 25.71 1.35 22.06 0.94 21.24 6.17

52-week low 14.20 0.41 0.71 0.60 2.62

Top 5 KERNEL ASSECOPOL SYNTHOS JSW PZU

Closing 69.70 45.00 5.25 94.00 407.50

% change (week) 5.61 0.58 0.57 0.16 -0.34

52-week high 76.00 55.45 6.78 112.50 422.00

52-week low 51.00 38.80 5.02 82.15 290.10

Bottom 5 POLJADLO BNPPL REGNON BBIZENNFI CAMMEDIA

Closing 0.11 75.00 0.03 0.20 2.84

% change (week) -42.11 -35.34 -25.00 -16.67 -15.22

52-week low 0.10 44.00 0.03 0.13 2.84

Bottom 5 PEKAO PGE PKNORLEN GTC PGNIG

Closing 152.20 17.06 49.00 8.61 5.50

% change (week) -9.13 -8.77 -5.95 -5.49 -3.68

52-week high 155.60 21.08 53.70 11.47 5.86

52-week low 153.00 16.72 31.44 5.13 3.61

52-week high 0.71 150.00 0.18 0.69 4.71

Currency report

Currency war ahead?

Other indices sWIG80

11,245.80 (January 31 close)

NewConnect

33.73 (January 31 close)

52-week high: 11,245.80

WIG-Banki

6,346.89 (January 31 close)

SOURCE: WSE

31.01

30.01

29.01

28.01

25.01

24.01

23.01

22.01

21.01

18.01

17.01

16.01

15.01

31.01

30.01

29.01

28.01

25.01

24.01

23.01

22.01

21.01

18.01

17.01

6,300

16.01

32.0

15.01

6,380 14.01

6,460

32.4

11.01

32.8

10.01

6,540

09.01

33.2

08.01

6,620

07.01

33.6

04.01

6,700

14.01

52-week low: 5,163.30

11.01

Change year to January 31: -5.60%

10.01

52-week low: 32.53

09.01

52-week high: 6,723.16

Change year to January 31: 1.54%

08.01

Change for the week: -3.95%

07.01

52-week high: 43.83

04.01

Change for the week: 0.30%

34.0

Adam Narczewski X-Trade Brokers DM SA

31.01

30.01

29.01

28.01

25.01

24.01

23.01

22.01

21.01

18.01

52-week low: 8,984.43

15.01

14.01

11.01

31.01

30.01

29.01

28.01

25.01

24.01

23.01

22.01

21.01

10,300

18.01

2,500

17.01

10,500

16.01

2,540

15.01

10,700

14.01

2,580

11.01

10,900

10.01

2,620

09.01

11,100

08.01

2,660

07.01

11,300

04.01

2,700

10.01

Change year to January 31: 6.78%

09.01

52-week low: 2,147.52

08.01

Change year to January 31: 1.13%

07.01

Change for the week: 1.24%

04.01

52-week high: 2,646.20

17.01

2,597.73 (January 31 close)

16.01

mWIG40 Change for the week: -1.83%

dismal day for mid-cap stocks. Stocks slumped again on Wednesday, largely driven down by news that UniCredit was planning to sell a 9.1 percent stake in its Polish unit, Bank Pekao. Shares of Pekao plummeted, closing nearly 7 percent lower, with most other financials following suit. The WIG20 ended 1.1 percent lower. Thursday was a busy day, with over z∏.1.6 billion in trade. Shares of Pekao continued to slide, losing another 2.3 percent, with the WIG20 down 0.14 percent. On Friday, moods improved somewhat, with the WIG and WIG20 both finishing up (by 0.23 percent and 0.26 percent respectively) after better-than-expected macroeconomic data for the United States was released. ●

Currency markets are in an interesting phase right now. Some traders are even predicting a currency war, which actually may have already begun. After the US Fed increased its quantitative easing program last year, the Bank of Japan recently signaled an unlimited asset buyback starting in 2014. More aggressive moves are expected from the Bank of England by mid-year, when the bank’s new governor takes over. Those countries’ currencies are depreciating, so traders are buying the last of the majors – the euro. The EUR/USD continued climbing as the European Central Bank held its tongue on the strong euro. The main currency pair reached $1.3670, its highest level since November 2011. Due to the lack of important macroeconomic news

from Poland, the z∏oty market was affected by external factors. The strong euro caused the EUR/PLN pair to again test the level of z∏.4.20, but after a better-than-expected US non-farm payrolls publication on Friday, the z∏oty regained ground and it finished the week at z∏.4.17. The situation in the USD/PLN market is completely different. The weakening US dollar caused the USD/PLN to tumble from its weekly highs of z∏.3.13, all the way to z∏.3.06 by the end of the week. This week the spotlight will be on the Monetary Policy Council’s decision on interest rates. Markets expect the council to cut another 25 basis points off the National Bank of Poland’s reference rate, which currently stands at 4 percent. ●

currency rates 3.3344 01.02

SOURCE: NBP

3.3934 31.01

29.01

3.3870

3.4456

28.01

30.01

3.4352

3.4243

3.3

25.01

0.1027 01.02

0.1027

0.1031

PLN-100JPY

3.5

31.01

30.01

0.1036 29.01

28.01

0.1040 25.01

3.3890

3.3991 01.02

0.10

0.1033

PLN-RUB

0.11

31.01

3.3629 30.01

3.3763 29.01

28.01

3.3680 25.01

4.8885

4.8629 01.02

3.3

3.3531

PLN-CHF

3.5

31.01

4.8732 30.01

4.9055 29.01

4.8923

PLN-GBP

28.01

4.8

25.01

01.02 3.0744

3.0874

4.9205

5.0

31.01

3.0938 30.01

3.1229 29.01

28.01

3.1186 25.01

4.1870

4.2028 01.02

3.0

3.1074

PLN-USD

3.2

31.01

4.1858 30.01

4.1969 29.01

4.1903 25.01

4.1

28.01 4.1805

PLN-EUR

4.3

SPORTS

FEBRUARY 4-10, 2013

Soccer

www.wbj.pl

Funding

Polish players on the move Sports minister announces funding overhaul Rafa∏ Wolski joins Italian side Fiorentina

Ludovic Obraniak playing for both Juventus and Roma and was given the nickname “bello di notte” (beauty of the night) by former Juventus president Gianni Agnelli, due to his inspirational performances in night matches. Polish international midfielder, French-born Ludovic Obraniak, was also surrounded by transfer speculation as

deadline day approached last week. The Bordeux player was reportedly the subject of a €10 million bid from Zenit St. Petersburg, which would have made him the most expensive Polish player in history. However, the deal did not go through before the midnight deadline on January 31. David Ingham

Poland’s Sports Minister Joanna Mucha announced changes to the way state funding is allocated to national sports associations last week. The ministry has divided sports into several groups by their chance of success at the international level. The “gold” group (with the highest chance of success) comprises canoeing, cycling, rowing, sailing, skiing, swimming, track and field, weight lifting and wrestling. They’ll receive 56 percent of state funds for high-level sports. Most of the sports associations will receive less money from the ministry. Some of the non-Olympic disciplines, such as fishing and snooker, are set to lose all government funding by 2014. Minister Mucha announced that future government subsidies will be based on results, and that sports that do not have a plan for developing youth talent will see their funding slashed.

COURTESY OF WIKIMEDIA COMMONS

The move came as a result of Poland’s poor performance at last summer’s London Olympics

SHUTTERSTOCK

Polish midfielder Rafa∏ Wolski signed for Italian club Fiorentina at the end of January in a deal claimed to be worth €2.8 million. The 20year-old only broke into Legia Warszawa’s first team last season, but after a number of inspiring performances in the Europa League, he has now been snapped up by the Seria A side. Mr Wolski made his debut for the Polish national team in May 2012 in a match against Latvia and has since gone on to earn two more international caps. In signing for “La Viola” he now joins a select list of Polish players to have made the move to the Italian league. Southampton goalkeeper and former Legia man Artur Boruc played 62 times for Fiorentina over two seasons before moving to the Premier League in September 2012. But arguably Poland’s greatest-ever export to Italy was current Polish Football Association chief Zbigniew Boniek, who played in a Juventus midfield that included Michel Platini in the 1980s. Mr Boniek spent six seasons in Seria A,

Sports MinisterJoanna Mucha A statement on the sports ministry’s website reads, “After summarizing the Olympic Games in London, it turned out that the Polish team had one of the weakest teams in terms of medal achievements. ... Once again, a large part of the Polish team was eliminated [in the first rounds] of a sport.” Ms Mucha went on to say, “Polish taxpayers should not fund sports associations that do not train young people, that do not have a team in any of the junior categories, have no promising young players, or do not prepare a credible plan for training.”

The move looks to be long overdue as Poland had a miserable 2012 in terms of sporting achievements. Euro 2012 proved a roaring success, but this was in spite of the Polish team’s poor showing on the pitch, as they failed to get past the group stage. Meanwhile, Poland’s Olympic team managed to get just two gold medals in London, and won a mere 10 medals total, leaving it in 30th place in the final medal standings. In 2013 the ministry of sport will spend z∏.175 million on high-level sports. David Ingham

LIFESTYLE

www.wbj.pl

FEBRUARY 4-10, 2013

Concert

Love and Fear

Guitar legend

Ballet

Tainted love Love and Fear February 8-10 Teatr Wielki, Pl. Teatralny 1 Warsaw This evening of entertainment consists of four ballet revivals in one evening. The performances begin with a piece inspired by the music of German composer Kurt Weill. Entitled the “Weill Suite” it looks at the changing fate of an artist, while presenting

views on the symptoms of intolerance and the eternal yearning for love. This performance will be followed by Robert Bondara’s ballet “When You End and I Begin...” which touches on the impermanence of close human ties. “Afternoon of a Faun” which was originally choreographed by famed Russian dancer Vaslav Nijinsky, deals

with the awakening of youthful eroticism. The final ballet is the only all-male performance of the evening. Entitled “The Green,” it uses the music of Jan Sebastian Bach to illustrate the insignificance of human-kind in comparison to the power of music. David Ingham

For more information, log on to teatrwielki.pl

British-born guitar legend Slash comes to Poland as part of a major European tour this month. The former Guns N’ Roses axeman made his name when his trademark guitar solos along with Axl Rose’s lyrics and unique singing style combined to make Guns N’ Roses the biggest group in the world in the late 1980s. The band’s debut album “Appetite for Destruction” has sold more 35 million copies since its 1987 release and in total the group has sold more than 115 million albums worldwide. Since leaving Guns N’ Roses, Slash has continued to carve out a successful career, first alongside former Stone Temple Pilots singer Scott Weiland in Velvet Revolver, then more recently as a solo artist, with his latest album “Apocalyptic Love” released in 2012. It followed on in the same hard-rock vein as his self-titled debut, which featured the standout track “Crucify the Dead,” written with Black Sabbath’s Ozzy Osbourne.

COURTESY OF WIKIMEDIA COMMONS

COURTESY OF TEATR WIELKI/EWA KRASUCKA

Slash February 13 Spodek, Al. Wojciecha Korfantego 35 Katowice

For his current tour he’s joined on stage by singersongwriter Myles Kennedy. Slash promised that on this tour, he’ll blast through his whole back-catalogue, including his Guns N’ Roses hits and

Slash

Velvet Revolver tracks. Tickets for the event are priced from z∏.150. David Ingham

For more information, log on to spodek.eu

LAST WORD

FEBRUARY 4-10, 2013

www.wbj.pl

Tech Eye

Serving the market, from game on to Game Over

from fast food to home furnishings to cars to mobile phones, and beyond. For good reason – maximizing customer lifetime value tends to make stockholders happy. The video game industry is no exception. Indeed, it’s taking this mantra pretty seriously these days, serving the market “from rugrat to rigor mortis.” And it’s not just games, either – there are accessories and gadgets and lifehacking apps, to list just a few examples. There’s even an astonishing variety of gaming furniture for all ages. Take, for example, the iPotty from

CTA Digital (Ctadigital.com). This is ostensibly a toilet-training accessory designed to encourage kids to get on the pot. But let’s be honest – it’s basically a ploy to hook kids when they’re young. To get them to associate the call of nature with Call of Duty (which should be known thenceforth as the Call of Doodie). There’s not much to say about the iPotty itself. It’s a plastic potty with a slot for an iPad, and that’s fine. Simple is good when it comes to potty training. Techeye can’t fully recommend the iPotty, despite our unabashed love of

The Emperor 1510

COURTESY OF MODERN WORK ENVIRONMENT LABS

COURTESY OF CTA DIGITAL

“Catch ‘em young, keep ‘em for life” is one of those quietly popular mantras in business. You see it in many industries,

gaming. There’s something weird about teaching a child to associate gaming with pooping, à la Pavlov. But we’re not going to judge. Interested parties can get an iPotty from CTA Digital for around $40, starting this March. Just don’t blame us if your kid ends up needing a toilet every time he or she sees an iPad. Gaming furniture for grown-ups, meanwhile, involves lamentably few toilets. But it can still be pretty cool. Modern Work Environment Lab (MWELab.com) is one company that is serving the market admirably, in our opinion. Based in Canada, it sells

a product called the ple of how to address this market. COURTE Maybe it’s not the finest example, Emperor 1510 SY OF PO PPY CO FFINS being kind of ugly and which now sits all, but it’s betatop Techeye’s ter than list of things we’d nothing. be willing to trade a Maybe. kidney for. We ’ r e The Emperor 1510 is not going described as “a stylish and effito list feacient computer work environt u r e s , ment,” but that’s like calling a Ferrari because there “a velocity optimizing four-wheeled aren’t any. And vehicle.” This thing is for fun. The chair has three monitors that can be we’re not sure what materials are raised or lowered, creating a “quasi involved, but the Invaders from total immersion” experience. There’s Space Coffin resembles something also an integrated audio system, LED we once bought at IKEA, so it’s lighting and the fact that it looks probably made of pressed sawdust and hard to assemble. It costs £480, swanky. Yes, it costs $5,950, but consider which includes UK delivery; orderthis – MWE Lab also has a chair ing from abroad will cost more. To be honest, even Techeye called the Emperor 200 that sells for an eye-watering $49,150. It’s probably wouldn’t buy a coffin like this, and made from unicorns. we’ve been informed on several Finally, we come to a product occasions that cadavers have more aimed at an underserved demograph- style than we do. But the Invaders ic – dead people. Despite their awful from Space Coffin is symbolic of reflexes, the dearly departed often what we may see in the future: mulhave money to spend and little to timedia coffins, designed to enterspend it on. tain you in the afterlife. The Invaders from Space Coffin Because even though it’s Game from Poppy Coffins Over, man, doesn’t mean it’s game (Poppycoffins.co.uk) is one exam- over. You know? ●

Ever yearned to purchase a multimedia coffin? Let us know: techeye.wbj@gmail.com

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

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

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

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art. Galeria 022, DAP, Lufcik pl ul. Mazowiecka 11a www.owzpap.pl Le Guern Gallery ul. Widok 8, Galeria 65 www.leguern.pl ul. Bema 65 www.galeria65.com Museum of Galeria Appendix 2 Independence ul. Bia∏ostocka 9 Aleja SolidarnoÊci 62 www.appendix2.com www.muzeumniepodleglo sci.art.pl Galeria Asymetria ul. Nowogrodzka 18a National Museum in www.asymetria.eu Warsaw Al. Jerozolimskie 3 Galeria Foksal ul. Foksal 1-4 www.mnw.art.pl www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

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

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

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

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