WBJ #49 2013

Poland Together

PKO BP mulls new payment card

Former Justice Minister Jaros∏aw Gowin launches a new party

Poland’s largest lender wants to create a domestic payment system

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VOLUME 19, NUMBER 49 • DECEMBER 16-22, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

COURTESY OF LC CORP

REAL ESTATE

• Sky Tower deal • Hotel Bristol sold • CA Immo acquisition 12-15

Adrenalinestarved Without another fiscal boost from leading economies, global growth figures will likely remain low 11

Plus: • Ad market up • New PGE CEO • Ukraine latest • PSL gains new MPs • Econ Min GDP forecast

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Cover Story . . . . . . . . . . . . . . . . . . .9 Opinion & Analysis . . . . . . . . .10-11 Lokale Immobilia . . . . . . . . . .12-15 Markets . . . . . . . . . . . . . . . . . . . . .16 The List . . . . . . . . . . . . . . . . . . . . . .17 Sports . . . . . . . . . . . . . . . . . . . . . . .18 Lifestyle . . . . . . . . . . . . . . . . . . . . .19

Budget in focus As Poland’s budget for 2014 is adopted by parliament, hopes are pinned on greater GDP growth to get the economy moving 9 again

Power outage The largest IPO on the Warsaw bourse this year turned out to be a disappointment

Flying higher Poland’s national carrier managed to cut its losses for 2013 but will likely still need financial aid 5

SHUTTERSTOCK

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

NEWS

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IN THE SPOTLIGHT

Numbers in the News

Lavrov in Warsaw for talks

Polish wine firms are doing increasingly well abroad, with exports of Polish wine in 2009 worth €10 million. However, the figure increased to €11 million just in the first half of 2013, according to data from FAMMU/FAPA. The companies are exporting their products to the United States, Lebanon, China and Nigeria. Fruitflavored and sparkling wines are the most profitable products abroad.

EP freezes CO2 permit auctions The European Parliament agreed to freeze the auctions of 900 million permits for CO2 emissions until 2015 in a vote last week. The measures have been taken with a view to raise auction prices and in turn encourage firms to invest in innovative methods of production, allowing for lower emissions of CO2. ●

Quote of the Week “Politics created without considering the people [it affects] is bad politics. We are here to change that.” Jaros∏aw Gowin speaking at the launch of his new party, Poland Together

Figures in focus Prosperity gap GDP per capita as percentage of the EU average in selected member states (EU28 = 100 percent, as of 2012) 300 250 200 *Highest in the EU **Lowest in the EU

150 100 50

Gr ee ce Po la nd Hu ng ar y Cr oa tia Bu lga ria **

do m

Cz ec h

ing dK

Un ite

str

an y

Source: Eurostat

Company index

Putin the Perónist

Atal................................................15

Millennium......................................6

Nina L. Khrushcheva, a professor in the graduate program of international affairs at the New School in New York compares Russian President Vladimir Putin with Argentinian dictator Juan Perón and his legendary wife, Evita. Log on to WBJ.pl to read all about the similarities between the two figures.

AXA Investment Managers

MLP Group......................................4

Deutschland ................................14

Noble Securities ..........................16

Boeing ............................................5

Peixin ..............................................4

BZ WBK ..........................................6

PGE ..........................................5, 16

CA Immobilien Anlagen AG ........14

PGNiG ............................................2

Capital Park..................................12

PKO BP ..........................................6

Chevron ..........................................2

PKP Cargo ......................................4

Deka-Immobilien Global..............14

Senatorska Investment ................15

Energa ..................................2, 4, 16

Skanska ........................................14

Getin Holding................................12

Starwood Hotels and Resorts......14

Globe Trade Centre ......................12

Tauron ..........................................16

ING ..................................................6

TriGranit ........................................12

Jones Lang LaSalle......................14

Visa..................................................6

LC Corp ........................................12

Warsaw Stock Exchange ....4, 12, 16

LOT ..................................................5

X-Trade Brokers ......................9, 16

MasterCard ....................................6

ZenithOptimedia Group..................6

DECEMBER 16-18 ENERGY FORUM Over 400 guests will discuss the region’s energy future, making it the largest sector conference in Poland. Everything from coal to renewables will be examined. Sheraton Hotel Sopot, Conference Center & Spa forum-ekonomiczne.pl/viii-forum-energetyczne-2013/

JANUARY 14 KPMG TAX AND ACCOUNTING CONGRESS Event:

is the Economy Ministry’s latest GDP growth forecast for Poland for this year.

mBank ............................................6

December/January

Web:

1.5%

Alior Bank ......................................6

Calendar

Location:

is Poland’s forecast trade surplus in the food sector this year, according to the Agriculture Ministry.

John Beauchamp

On WBJ.pl

Event:

€5.5 billion

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that the Tupolev wreckage – the remains of the Smolensk catastrophe which killed President Lech Kaczyƒski and 95 others in 2010 – finally be returned to Poland. Back in November, Mr Sikorski told the radio station that he raises the issue of the Tupolev wreckage “practically every time” he speaks with Mr Lavrov. Not to much effect, it seems. Nevertheless, “Poland and Russia have joint interests,” Mr Sikorski maintained, adding that the countries have better trade relations and managed to launch a local border traffic agree-

is Poland’s place out of 145 economies ranked in the latest Best Countries for Business ranking compiled by Forbes.

On December 19 Russian Foreign Minister Sergey Lavrov will visit Poland for a meeting of the Committee on PolishRussian Cooperation Strategy, Poland’s Foreign Ministry announced last week. The visit has been on the cards since last month, when Foreign Minister Rados∏aw Sikorski told Radio ZET that his Russian counterpart would be visiting Warsaw on his invitation, which came days after Poland’s Independence Day protests saw a nationalist attack on the Russian embassy in Warsaw. Matters will almost certainly turn to Poland’s demands

39th

Increase in Polish wine exports

Russian Foreign Minister Sergey Lavrov

is the drop in power utility Energa’s share price at its IPO last week.

bo urg

Poland’s gas giant PGNiG and the Polish unit of Chevron signed a memorandum on cooperation for shale gas exploration toward the end of last week. The companies are considering establishing a joint venture company if the exploration is successful. The sites that both companies will work on are PGNiG-owned concessions in Tomaszów Lubelski and WiszniówTarnoszyn, as well as the Chevron-run Zwierzyniec and Grabowiec.

SHUTTERSTOCK

PGNiG teams up with Chevron for shale gas exploration

ment in July this year. Since that November interview, however, a lot has changed in terms of regional geopolitics. After Ukraine rejected an EU free-trade agreement fearing that relations with Russia would sour, talks will almost certainly pivot on the ongoing situation in Kiev. Protesters have since filled Kiev’s Maidan – Independence Square – and have called for the resignation of President Viktor Yanukovych. Olena Babakova, a journalist working for the Ukrainian service of Polish Radio, told WBJ that the Ukrainian authorities have showed that they have no respect for Western codes of diplomacy. “What’s going on in Kiev is also the fault of the EU, whose jibber-jabber, lack of decision making and incompetent [leadership] has untied Yanukovych’s hands,” said Ms Babakova, going so far as to say that the EU should play a heavy hand with Ukraine by threatening sanctions on the country. Ms Babakova added that the situation in Kiev has opened the door for Poland to become a major player in EU foreign policy, but for the time being Warsaw is keeping its talk limited. Mr Sikorski and Mr Lavrov are unlikely to reach a breakthrough in their countries’ disagreement over Ukraine’s future, but the discussion may allow Warsaw to gauge how far it can go in helping to find a resolution.

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American president Barack Obama has been officially invited to Poland, the Ministry of Foreign Affairs said. Mr Obama was invited to take part in the 25th anniversary of Poland’s first partially free elections after communism, which took place on June 4, 1989. Polish President Bronis∏aw Komorowski previously held talks with Mr Obama regarding the matter at the United Nations General Assembly meeting in September.

5.4%

Re pu bli

Barack Obama to visit Poland in June?

DECEMBER 16-22, 2013

Top KPMG experts will discuss changes in

Location: Web:

the tax law which will be introduced on January 1 as well as new accounting standards. Hilton Hotel, Warsaw kpmg.com/pl/en

22-25 WORLD ECONOMIC FORUM IN DAVOS Event:

Location: Web:

World leaders, top economists and businesspeople will gather in the Swiss resort to discuss the current and future global economic landscape. This year’s summit agenda is: The Reshaping of the World: Consequences for Society, Politics and Business. Davos, Switzerland weforum.org

NEWS

DECEMBER 16-22, 2013

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Region

Domestic

Ukrainian deadlock continues

Gowin goes it alone, together

SHUTTERSTOCK

The politics

The largest protest involved some 500,000 people

The situation in Ukraine remains far from settled as rallies go on in Kiev and politicians do not seem to be able to find a solution Demonstrations continued in Ukraine throughout the past week despite harsh weather conditions and attempts from the authorities to stop them. They started out on November 21 in reaction to the Ukrainian government’s decision to suspend talks on signing a freetrade agreement with the European Union, but have since moved to demand dismissals of the country’s top officials. By the end of last week, Ukrainian officials made statements suggesting that the deal with the EU could still be signed. Having met EU Enlargement Commissioner Štefan Füle in Brussels, Ukrainian Deputy Prime Minister Serhiy Arbuzov said that an agreement may be reached after several “trade issues” are resolved. A similar statement was said to have been made by President Viktor Yanukovych, according to EU foreign policy chief Catherine Ashton, who spoke to the Ukrainian head of state several times last week. The opposition does not seem satisfied with these promises, however.

The demonstrations The protests in Ukraine,

dubbed the “Euromaidan,” are centered around Kiev’s main square Maidan Nezalezhnosti, which was also the main scene of the 2004 Orange Revolution. The largest of them, on December 8, involved about 400,000-500,000 protesters, but several thousand people are continuously present on the square. It was on December 8 that the crowd in the Ukrainian capital brought down the statue of Vladimir Lenin, making a symbolic statement. Last Tuesday, police forces tried to push activists off Maidan Nezalezhnosti, but did not succeed. However they destroyed barricades and stormed buildings occupied by the protesters. Though this attempt to thwart protests was not as violent as the first one back in November, it sparked criticism from the West. US Secretary of State John Kerry issued a statement expressing his country’s “disgust with the decision of Ukrainian authorities to meet the peaceful protest in Kiev’s Maidan Square with riot police, bulldozers, and batons, rather than with respect for democratic rights and human dignity.” The US Department of State went on to suggest it could take action against Ukrainian authorities. “All policy options, including sanctions, are on the table, in our view, but obviously that still is being evaluated,” spokesperson Jen Psaki said. Poland in turn offered to mediate. The Ukrainian Ambassador to Poland,

But the Ukrainian stalemate won’t be easy to resolve, as multiple interests are involved, both inside the country and in its international environment. The protesters may be seen as one group by observers from abroad, but they are indeed led by several political groups, the two most visible being Yulia Tymoshenko’s Batkivshchina and Vitali Klitschko’s UDAR. Ms Tymoshenko was initially seen as the face of the protest action. The former prime minister is in jail, sentenced for corruption and abuse of power. Her case was one of the main subjects of negotiations between Ukraine and the EU, as European officials demanded that she be allowed to get medical treatment abroad. However in the past few days it is Mr Klitschko, well known in the West as a former boxer, who got into the limelight. His stance is more radical, at first declining any dialog with present authorities and demanding snap elections, both presidential and parliamentary. He has since agreed to take part in talks, however. The government side of the conflict is also not unanimous and, perhaps more pertinently, is faced with more than just a political crisis. Ukraine’s economy is in a bad state and the country needs financial support. Media reports have suggested that Mr Yanukovych asked Russia for help, but no official statement was made about any loans to Ukraine from its largest neighbor. Russia nevertheless remains one of the key players in the game. The country’s president, Vladimir Putin, referred to Ukraine in his annual address last Thursday, saying that it may still join the customs union that now includes Russia, Belarus and Kazakhstan, if it wishes to do so. Kamila Wajszczuk

FLICKR.COM/PIOTR DRABIK

Markiyan Malsky, was summoned to the Ministry of Foreign Affairs last Wednesday and presented with such a proposal, which he said he would pass on to his country’s authorities. Earlier that day, the Polish ministry also issued an official statement condemning the use of violence.

Jaros∏aw Gowin announces the formation of the Poland Together party

After leaving the ruling Civic Platform (PO) party earlier this year, former Justice Minister Jaros∏aw Gowin has now established his own party At a much-anticipated convention in early December, Jaros∏aw Gowin announced the creation of a new party – Poland Together. The move comes after months of traveling across Poland to gauge public opinion through his “Godzina dla Polski” (“An hour for Poland”) campaign. “Politics created without considering the people [it affects] is bad politics. We are here to change that,” Mr Gowin said at the convention. Mr Gowin is joined by former Law and Justice (PiS) politicians Przemys∏aw Wipler, who set up the Republican Association, as well as Pawe∏

Kowal, an MEP who left PiS to set up Poland Comes First, which will now be dissolved as a result. Poland’s first black MP, John Godson, also joined Poland Together after falling out with PO’s social and fiscal policies and leaving the party this past summer. “I believe that this new initiative will

cent in a survey by Millward Brown at the beginning of last week. The figure would put the fledgling party in parliament – the threshold is five percent – but the question remains whether it will be able to maintain media and public interest until crucial elections in 2015. “I’m not satisfied with six

“This new initiative will bring ... some reinvigoration into the Polish political system.” bring ... some reinvigoration into the Polish political system,” Mr Godson told Polish Radio last week. The party holds a socially conservative line while being economically liberal, with the aim of wooing voters from both PO and PiS in local elections in 2014 as well as the general elections the year after. However, Poland Together only managed to poll six per-

percent,” Mr Godson told Polish Radio, adding that he is aiming for 20 percent by the time election fever hits Poland in 2015. Mr Gowin left the ruling Civic Platform earlier this year after having lost the party’s leadership election to Prime Minister Donald Tusk. He received 20 percent of the vote in the internal election. John Beauchamp

NEWS

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Stock exchange

DECEMBER 16-22, 2013

Politics

Energa fails to spark investor interest Coalition gets new MPs

After some promising IPOs this year, investors were hoping that Energa’s flotation would bring some quick profits as well. In the last few months there have been several companies whose stock gained around 20 percent during their first day of trade: Peixin, 26.9 percent; MLP Group, 23.2 percent; PKP Cargo, 19.3 percent. Comparatively, Energa’s IPO, the biggest on the Warsaw Stock Exchange this year, was a let-down. During its first day on the WSE, Energa’s share price dropped by 5.4 percent, leaving thousands of investors disappointed. Analysts were expecting these drops, however, as the current investment climate is not favorable. After the Polish parliament approved changes to the Polish pension systems, which forces privately-run pension funds to move 51.5 percent of their assets to the state-run social security system ZUS, the WSE has been on a losing streak, as the bulk of pension

The ruling coalition’s parliamentary majority has received a much-needed boost as four MPs join the Polish People’s Party

COURTESY OF ENERGA

The share price of Poland’s third-biggest utility dropped by over 5 percent on its first day of trade

Energa CEO Miros∏aw Bieliƒski (left) and Treasury Minister W∏odzimierz Karpiƒski (right) put on a brave face at the utility’s stock debut assets are on the stock exchange and investors are worried that without them, the bourse will have a hard time. The trade volume of Energa shares was z∏.576 million during its debut outing on the WSE, while trade on the entire blue-chip WIG20 index was z∏.568 million that day. The figures mean Energa employees were selling the

stock they owned. Since their shares were not restricted by any lock-up period, they decided to cash in on profits as quickly as possible. The lack of interest shown by institutional investors did not help matters. Energa CEO Miros∏aw Bieliƒski said that the company stock is tailored for longterm investors, not short-term ones, as the company has

already announced that it will pay z∏.400 million in dividends from this year’s profits and z∏.500 million from next year’s. Energa’s IPO was worth z∏.2.4 billion, making it the largest on the Warsaw bourse in two years and the biggest in the CEE region this year. The State Treasury sold a 34.18 percent stake in the company in the Jacek Ciesnowski offering.

MPs Halina Szymiec-Raczyƒska, Artur Bramora, Bart∏omiej Bodio and Dariusz Cezar Dziadzio have all joined the parliamentary caucus of the junior coalition partner, Polish People’s Party (PSL). The politicians have not yet decided to join the party itself. The MPs had earlier been members of Palikot’s Movement (now renamed Your Move), but left the party in June this year and later established their own parliamentary group called the Initiative for Dialog. According to PSL’s parliamentary caucus leader Jan Bury, talks with the four MPs started three months ago. The new members significantly strengthened the coalition before the important vote on the 2014 budget, which was held last Friday.

Coalition’s majority safe – for now Ever since three MPs – former Justice Minister Jaros∏aw

Gowin, Poland’s first black MP John Godson and Jacek ˚alek – quit the senior ruling party Civic Platform (PO) earlier this year, it had been speculated that the coalition could lose its majority in parliament prompting snap elections. Such talk will likely cease for now. PSL’s parliamentary caucus currently numbers 33 MPs. This will give the parliamentary majority of the Civic Platform-led coalition 236 seats in the 460-member Sejm. The PO-PSL coalition is the longest-lasting parliamentary majority in Poland’s postcommunist history. Although it was initially thought there could be serious ideological gulfs between a center-right, pro-Europe, big-city party like Civic Platform and the more traditional rural-based Polish People’s Party, the coalition has been remarkably stable and has remained in power since 2007. Current polling shows that even though PO may not win the scheduled 2015 parliamentary elections, together with PSL, both parties could perform well enough to once again be able to form a coalition and rule the country. Remi Adekoya

BUSINESS

DECEMBER 16-22, 2013

Airlines

LOT significantly improves its financial results

Instead of the previously projected z∏.142 million loss for 2013, Polish state-owned air carrier LOT now estimates that its net loss should be at z∏.20 million, CEO Sebastian Mikosz said while announcing the airline’s latest financial results last week. The troubled national carrier has been losing money for years now, and earlier in 2013 received some z∏.400 million in state aid to avoid bankruptcy. This financial help has been the subject of investigation by the European Commission over whether it was in line with EU competition laws. Mr Mikosz expects to have the decision announced within the next few months. In order to justify the state aid, the company had to make several concessions. It reduced its employment and the number of planes it uses, also slimming its route network significantly. Furthermore, starting from April 2014, LOT will fly internationally from Warsaw Chopin airport only. Such cuts have helped save the company money, despite fewer passengers – a drop of five percent – flying so far this year. In January-November 2013, LOT improved its net result on core operations by z∏.111 million compared to the plan. The third quarter was especially good, the firm said, as it had a net profit on core

COURTESY OF LOT

The Polish air carrier this year expects to lose some z∏.120 million less than previously expected

LOT will post a loss of “only” z∏.20 million this year operations of z∏.100.5 million compared to z∏.20 million in Q3 2012. Mr Mikosz added that the company hopes to become profitable next year and bring z∏.71 million in profits for 2014. The rescue plan is supposed to be in force until late 2015. Only after that date will LOT be able to expand its flight network.

Dreamliner compensation LOT and Boeing have also announced that they have reached a settlement on compensation for the grounding of the carrier’s 787 Dreamliner fleet. All of the latest Boeing planes were out of service between January and June, with the Polish air carrier estimating that it has lost some z∏.100 million due to the grounded planes. Both companies did not reveal the details of the agreement, with LOT CEO Sebastian Mikosz saying only that the deal is satisfactory for both parties. According

to various media reports, the Polish airline received about z∏.100 million in compensation, which is what it asked for initially. LOT currently has five Dreamliners, with the sixth scheduled to join the fleet in March. The plane will most likely have to be leased out as the reduction in routes means the Polish air carrier will have no use for it.

Still in need However, despite an improvement in financial results, the company will still need additional help from the treasury. Mr Mikosz said that the company is postponing such a decision so that the aid will be as small as possible, but with the worst months for air travel – January and February – fast approaching, it likely won’t be able to avoid it. According to its rescue plan, LOT was supposed to receive an additional z∏.380 million from the state, but Mr Mikosz maintains that it won’t need that much. Jacek Ciesnowski

State-owned firms

Who will head PGE? The next CEO of Poland’s largest utility could be the former head of the energy regulator The chief executive of Poland’s largest utility PGE, which is majority-owned by the state, should to be chosen before the end of December. That is what Treasury Minister W∏odzimierz Karpiƒski told reporters last week. However, a day earlier Polish Radio reported that the CEO had already been picked and that it’s Marek Woszczyk, who has headed the Energy Regulatory Office since 2011. Speculation heated up when Mr Woszczyk resigned from his post as the watch-

dog’s head a day after the reports about his future position appeared. Mr Karpiƒski said that he wasn’t sure if Mr Woszczyk was at all being considered for the post of PGE CEO, but called him a “professional.” “He knows the sector, he is pro-state oriented, but he also cares about the energy market,” the treasury minister said. When asked about a possible conflict of interest, Mr Karpiƒski remarked that he “doesn’t mind if professionals manage companies.” According to Dziennik Gazeta Prawna, other candidates in the competition for PGE’s CEO include Pawe∏ Skowroƒski, who was deputy CEO at the company until mid-2012, and an unnamed

management board member at one of PGE’s subsidiaries. The company’s previous chief executive, Krzysztof Kilian, resigned from his post in November. Reports suggest that the main reason behind his decision was that he did not want to follow through with the company’s Opole power plant extension project because he felt it would be unprofitable, while the government pushed for it to be carried out, since it views the initiative as crucial for the country’s energy security. In early December, PGE signed agreements with the contractors of the two 900 MW coal-fired units in Opole. Construction at the site is expected to start in KW February 2014.

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BUSINESS

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DECEMBER 16-22, 2013

Payment cards

Advertising

PKO BP mulling new card-payment system

Ad market expecting a rebound in 2014

The card would compete domestically with Visa and MasterCard

After years of decline, the advertising market should finally see growth, albeit modest, in 2014 The value of the Polish advertising market is expected to increase by 1.2 percent in 2014 to z∏.6.46 billion. In 2013 it will decline by 5.6 percent year-onyear overall and amount to z∏.6.37 billion net, according to a forecast published by ZenithOptimedia. That is still an improvement over the forecast from three months ago, which saw the market decline by 6 percent this year. “The market has been showing clear signs of recovery in recent months, said Monika Bronowska, CEO of ZenithOptimedia Group. “There are a number of factors pointing to a slow increase in the advertising market, with optimistic signals coming from gradual economic recovery as well as from advertisers themselves,” Ms Bronowska added.

COURTESY OF PKO BP

Poland’s largest lender PKO BP is working on introducing a new payment card to the Polish market, the bank revealed last week. The card is planned as a complementary element to a new online payment system which is expected to be launched by PKO BP together with five other banks. It would effectively become a competitor to Visa and MasterCard in the domestic market, and would allow the banks to cut out the fees those companies charge on card payments. “Over 90 percent of noncash transactions are carried out domestically,” PKO BP’s chief executive Zbigniew Jagie∏∏o told Dziennik Gazeta Prawna. “That is why we should have a domestic card payment system, which would translate into lower transaction fees and other benefits.” However, Mr Jagie∏∏o also

mentioned that such a domestic card scheme independent of foreign payment card systems was attempted, but dropped in the 1990s. After PKO BP, Millennium, ING, BZ WBK, mBank and Alior Bank create their mutual mobile payments system, their next step should be a card system, the CEO said. Such systems already exist in Western Europe, he explained. Customers use domestic systems locally and

Visa or MasterCard abroad. Robert ¸aniewski, president of the Foundation for Development of Cashless Transactions, told the paper that it such a card would have a chance to prosper, but “First and foremost it should be a system which is open to the extent that every bank operating on the Polish market should be able to issue the card.” Kamila Wajszczuk, John Beauchamp

Ups and downs In Poland, television and radio advertising will both see a rebound next year. After finishing this year with a drop of 5.1 and 4.4 percent respectively, they will see growth in 2014, by 1.1 and 1.3 percent respectively. Internet and cinema advertising will be the only market segments to see growth in 2013. The online ad market will increase by 7.3 percent this year and by another 12.2 percent next year, while cinema advertising will grow by 1.8 percent annually both in 2013 and 2014.

News is less optimistic for the press advertising segment, which will see a strong decline this year as well as next year. The value of the dailies segment will drop by 25.2 percent in 2013 and by 16.1 percent in 2014. In the magazines segment, the annual declines will be 21 and 14.9 percent. In the outdoor advertising segment, there is an 11.2 percent decline expected in 2013. However in 2014, the annual decline will amount to just 0.9 percent. Beata Socha

Winners and losers Advertising market segments in 2013 and 2014 (changes in %) 20 2013

2014

10 0 -10 -20 -30 Television Internet

Radio Magazines Outdoor

Dailies

Cinema

Source: ZenithOptimedia

On the occasion of the Belgian Days, we speak to Ambassador Raoul Delcorde as well as the head of the Belgian Business Chamber, Bruno Lambrecht How would you describe Polish-Belgian economic cooperation and trade exchange? Ambassador Raoul Delcorde: Poland is and will remain, I believe, a country of opportunities for a good number of Belgian companies. It really matters that Poland is a member of the EU and is able to implement largely all the EU recommendations, including those related to fiscal and monetary policies. Even though it might take some time before Poland joins the euro zone, Belgian companies feel more secure here than in other countries which are in the vicinity and are not members of the EU. They find here an open economy where all the general rules of a market economy are respected. Trade and investments are undoubtedly an indispensable element of bilateral relations. In that respect, Belgium and Poland are strong business partners. In 2012, the total figure for the bilateral trade (of goods) between our two countries amounted to €8.4 billion. Poland is the 11th-largest foreign client of Belgium. Belgian exports to Poland increased 11.8 percent between 2010 and 2011, but Poland’s exports to Belgium increased too, by 10.8 percent. In 2012, Belgium had a trade surplus with Poland of €2.4 billion. Belgium is exporting more to Poland than to Sweden, Turkey or Austria. When it comes to services, Poland has a trade surplus with Belgium, due to the construction sector.

Are there many Belgian companies operating in Poland or willing to enter the Polish market? Ambassador Raoul Delcorde: Since 2004, when Poland joined the European Union, there has been a large influx of Belgian companies and Belgian investments (about 500 Belgian companies have operations in Poland). This is a continuing trend. It is not true that they just come here to sell their products, though certainly this is what business is about, but quite a few came here and started operations to take advantage of the opportunities offered by Poland. Belgium contractors have been involved in development and urban projects in Poland for some time now. I am proud that Belgian companies specialized in construction and infrastructure continue to be chosen as partners who contribute with their know-how and experience to the modernization of cities and the equipment of ports and industrial sites. I can mention Ghelamco (which is currently building the Warsaw Spire, which will become the second-tallest building in Poland), but also CFE Polska, Sea-Invest (building a jetty in the port of Gdaƒsk), Immobel in Poznaƒ, etc. Do you know that the beautiful lighting of the Presidential Palace in Warsaw or of Warsaw Chopin Airport is a production of Schréder Polska, the Polish branch of Schréder, a world leader in urban lightning? What are the barriers Belgian firms encounter in Poland? Ambassador Raoul Delcorde: The fact that Poland is not a member of the euro zone creates a little insecurity because of the varia-

COURTESY OF THE BELGIAN BUSINESS CHAMBER

Promising prospects

COURTESY OF THE BELGIAN BUSINESS CHAMBER

Media patronage

General Manager of the Belgian Business Chamber Bruno Lambrecht

Belgian Ambassador to Poland Raoul Delcorde

tions of currency exchange rates. Belgian companies might sometimes face difficulties in participating in some tenders or finding a suitable local partner to start operations. But this is not a major problem. Belgian companies producing premium products tended to consider the Polish market as unattractive. But they see now that there is in Poland a segment of the population with increasing purchasing power. Internationally renowned Belgian fashion designers as well as “gourmet” Belgian products are now welcome in Poland and I hope that they will be seen more often in Polish malls. Not to forget, of course, Belgian diamonds!

and providing them with all the necessary information. Moreover, we organize various events such as business mixers, conferences and B2B meetings. The BBC is a great platform, which brings businessmen together and helps to establish business relations.

How does your chamber assist Belgian investors? Bruno Lambrecht: The Belgian Business Chamber is building a bridge between Belgium and Poland. We are often the first point of access for business people and Belgian investors in Poland. We can support these companies by redirecting them to the proper government institutions or other companies and consultants. We are a platform for bringing people together, leading them to the right place

Do you think there will be more Belgian capital in Poland in the future? Bruno Lambrecht: Yes, I’m sure of that. The Belgian Business Chamber is regularly approached by Belgian investors who consider doing business in Poland. There is still a lot of room where Belgian companies can develop, particularly in the field of new technologies, infrastructure and environmental protection. The consumer market also still has a lot to offer. People want to improve their living standards and there is a demand for many products that are scarcely present on the market. There is also scope for cooperation in the medical, bio-engineering, housing and financial sectors. In a nutshell – the prospects for Belgian investments in Poland look very promising and we will be glad to help all interested companies to enter into the Polish market. ●

FINANCE & ECONOMICS

DECEMBER 16-22, 2013

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Economy Ministry Poland to have lower Rates may stay flat budget deficit? beyond 2014, say maintains GDP central bankers growth forecast

Slowest growth in a decade Poland’s annual GDP growth (%) 8 7 6 *Economy Ministry forecast 5

Poland 39th in Best Countries for Business Poland was ranked 39th out of 145 economies in the latest edition of the Best Countries for Business ranking compiled by Forbes. The country’s position is lower than that of most western European countries, but also than those of Estonia (23), Lithuania (25) and Latvia (35). Poland did score well in some of the categories in the

index. In personal freedom it was ranked 1st and 10th in trade freedom. It was categories such as innovation (62nd), tax burden (87th) and red tape (95th) that brought the country’s overall score down the most. The top places in the Forbes ranking this year went to Ireland, New Zealand and Hong KW, AK Kong.

El˝bieta Chojna-Duch Monetary Policy Council (RPP) Members El˝bieta Chojna-Duch and Anna ZieliƒskaG∏´bocka both said that the National Bank of Poland’s ref-

erence interest rate may stay at its record low beyond mid-2014. The RPP has maintained a neutral stance since July 2013. “It should be possible to keep rates unchanged even until the end of next year,” Ms Chojna-Duch told Bloomberg in an interview. “Short-term forecasts suggest inflation could be lower than our projection of 1.7 percent and there isn’t going to be any wage or price pressure with the economy growing at its current pace.” Ms Zieliƒska-G∏´bocka also said rates could stay low past July next year. Even if inflation rises alongside higher GDP growth, the central banker would “prefer to enjoy the stronger economy rather than worry about price KW growth,” she said.

How does Poland compare? Poland took 39th place in the ranking. Here is how some other countries placed Western Europe Country

3 2

Country

Rank

Denmark

Slovenia

Sweden

Estonia

Lithuania

Bulgaria

Finland Netherlands

France 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013*

Source: Central Statistical Office, Economy Ministry

Gazeta Finansowa

English-speaking countries

Central & Eastern Europe Rank

Country

Former Soviet Union Rank

Country

Ireland

Armenia

New Zealand

Azerbaijan

Canada

Kazakhstan

Australia

Moldova

Rank

Czech Republic

Germany

Hungary

United Kingdom

Russia

Spain

Romania

United States

Ukraine

Source: Forbes

the end of 2013. Monthly reports on the budget published by the ministry have already shown that revenues are higher than expected. At the same time, spending has declined. The ministry’s analysts expect the positive KW trend to continue.

COURTESY OF NATIONAL BANK OF POLAND

Donald Tusk has recently said he expects 1.4 percent growth and the National Bank of Poland’s projection sees 2013 GDP growth at 1.3 percent. Economy Ministry analysts had earlier said that they expect Q4 2013 GDP growth to come in at 2.3 percent. In late November, Poland’s statistics office GUS confirmed Q3 2013 economic growth at 1.9 perKW cent.

Poland’s Economy Ministry has said that it would maintain its forecast for the country’s economic growth this year at 1.5 percent. The announcement comes after a series of macroeconomic data was published in recent weeks. The projection is in line with the 1.5 percent year-onyear growth forecast that is part of Poland’s state budget for this year. However, Prime Minister

Poland’s Ministry of Finance estimates that this year’s budget deficit may be up to z∏.9 billion lower than expected, according to Finance Ministry Chief Economist Ludwik Kotecki. This means that the deficit is likely to be z∏.42.5 billion instead of z∏.51.5 billion at

COVER STORY

DECEMBER 16-22, 2013

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Economy

Budget 2014 ‘not easy’ Poland’s budget for 2014 assumes GDP growth of 2.5 percent, an inflation rate of 2.4 percent and a modest rise in wages and private consumption. The budget deficit is supposed to come in at z∏.47.7 billion or no bigger than z∏.55 billion, according to the Ministry of Finance. Commenting on next year’s budget, which parliament accepted last week, Finance Minister Mateusz Szczurek said, “The budget for 2014 is

Budget breakdown Assumptions in the recently approved 2014 budget Income – z∏.276.5 billion Expenditures – z∏.324.5 billion Average inflation – 2.4 percent Unemployment rate – 13.8 percent Income from privatization – z∏.3.7 billion Source: The Ministry of Finance

not easy … I myself hope that real GDP growth will be bigger although for taxpayers, for citizens, the presumptions regarding inflation might seem too pessimistic.” “The inflation projection is quite high … this means that budget income might suffer if inflation turns out to be lower,” added Mr Szczurek. The minister described the 2014 budget as “safer” than the 2013 budget (which had to be amended) as the general economic situation was now more stable – though far from rosy. “We do not expect to return to full normalcy in the sense that unemployment will fall to a level satisfactory for the government. But at the same time the risk of recession is behind us,” said Mr Szczurek. “It is a cautious budget,” Prime Minister Donald Tusk told journalists after the parliamentary decision, adding that although it is an austerity budget, “it gives chances for development.” A total of 448 MPs voted on the budget bill, with 235 votes for, 213 against and no abstentions. Only five out of

177 proposed changes to the bill were taken into account by parliamentarians. In 2014, the government plans to receive z∏.248 billion in taxes, z∏.9 billion more than in 2013. This year was a tough one for the Polish economy and the state budget, as growth slowed down to 0.5 percent in the first quarter and stayed at a low 0.8 percent in the second quarter. However, Q3 data offered more optimism as the Polish economy grew by 1.9 percent, fueling hopes that 2014 will be a much better year for the economy.

Realistic? So are the government’s assumptions for next year realistic? This year the 2013 budget had to be amended after it emerged that due to a deeper economic slowdown than the government had predicted, tax receipts came in much lower than expected in the first half of the year. Prime Minister Donald Tusk’s government was thus forced to increase Poland’s budget deficit by z∏.16 billion in September, bringing the total to z∏.51.6 billion.

COURTESY OF SEJM/KRZYSZTOF BIA∏OSKÓRSKI

The Polish economy is expected to do better next year than in 2013. Still, it will be no cakewalk

Remi Adekoya

235 MPs voted in favor of approving the budget for 2014 “The market consensus for GDP growth next year is close to 3 percent and under 2 percent for inflation so the government is certainly not out of line here,” said Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers. Mr Kwiecieƒ said the key component necessary to ensure that growth next year picks up is increased private consumption, which the gov-

ernment hopes will rise by 4.6 percent. “Consumption won’t surge that much but it will certainly

contribute to growth more than it did this year,” Mr Kwiecieƒ said. Remi Adekoya

Mixed picture Key macroeconomic forecasts GDP growth

Unemployment rate

Budget deficit

2013

1.5%

13.8%

z∏.43.5 bln

2014

2.5%

13.8%

z∏.47-55 bln Source: The Ministry of Finance

OPINION & ANALYSIS

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DECEMBER 16-22, 2013

Who lost Ukraine? Ivan Krastev Revolution, reflected in the current wave of protest, is that people learned then that political leaders cannot be trusted, but that tens of thousands, gathered on Kiev’s Independence

ian West, and that any radical move could lead to the country’s break-up. Ukraine’s economy is dependent on both Russia and the EU; its labor migrants go both east and west, and

Square, can exercise effective veto power. The major difference between 2004 and today is that, virtually overnight, Ukraine has lost its privileged status of geopolitical ambiguity.

Making promises, avoiding commitments In the two post-Cold War decades, the country has been like an oversize suitcase without handles – you can neither take it with you nor leave it at the station. It was assumed that Ukraine was divided between a proRussian East and a mostly anti-Russ-

Russia, determined to reintegrate the post-Soviet countries in the Eurasian Economic Community (EurAsEC), nor the EU, humiliated by President Viktor Yanukovych’s refusal to sign the association agreement, can live with the status quo. The current crisis demonstrates that the EU underestimated the transformative power of its European Neighborhood Policy – a reminder of both the strength of the EU’s political appeal and the weakness of its diplomacy.

consensus in Ukrainian society. But Russian President Vladimir Putin correclty calculated that now, unlike nine years ago, Mr Yanukovych is ready to use force if this is the price he must pay to maintain his hold on power. Outsiders need to understand how high the stakes have recently become in the post-Soviet space, where two opposing integration projects are doomed to clash. There are only three options left for Ukraine: sign the agreement with the EU, as

Everybody’s wrong

SHUTTERSTOCK

arl Marx famously remarked that major historical events occur twice – the “first time as tragedy, then as farce.” In Ukraine, sadly, tragedy and farce are inseparable. That is why it would be a mistake to read the current wave of mass political protest, triggered by the government’s refusal to sign an association agreement with the European Union, as a second Orange Revolution. In 2004, inspired by the hope of joining the EU as soon as possible, Ukrainians poured into the streets to take back a stolen presidential election. Back then, the Union looked like a fantastic machine capable of making authoritarian states democratic and poor societies rich. What has brought Ukrainians into the streets this time is something different – the fear that their country’s European prospects could be foreclosed forever. They know that their country will not join the EU in the next decade, and they know that the EU itself is in crisis. But they are determined to insist on their right to a European future. Fear of losing that hope, it seems, is at the heart of the EU’s soft power when the prospect of enlargement is fading away. The real legacy of the Orange

its no-nonsense oligarchs keep their eggs in at least two baskets. Politically, Ukraine is also a world of its own – corrupt, messy, and inefficient, but also much more pluralistic and open than Russia or Belarus. So, while it was always difficult to know what Ukrainian leaders wanted, it was easy to predict how far they could go. Unsurprisingly, Ukrainian elites have spent the last two decades making promises and avoiding commitments. But all of this has changed, almost overnight. Ukraine is not a “kingdom in the middle” anymore. Neither

Ultimately, everybody got Ukraine wrong. European politicians made the Kremlin believe that Ukraine was not important enough for the EU; as a result, Russia wanted not only to block Ukraine’s turn to the EU, but to bring the country into its own integration project. European leaders also overlooked the cultural contempt that the Russian leadership has started to feel for “the same-sex marriage empire” that the EU has become in their eyes. Russia got Ukraine wrong, too. The scale of the protests in Kiev has taken the Kremlin by surprise, because Russia’s elite has never considered civil society an independent player in national politics and failed to notice the emergence of a European

“In Ukraine, sadly, tragedy and farce are inseparable.” the majority of Ukrainians want; join Mr Putin’s EurAsEC, as the endangered political elite prefers; or go bankrupt. ● Ivan Krastev is chairman of the Center for Liberal Strategies, Sofia, and permanent fellow at the Institute for Human Sciences (IWM) in Vienna. His latest book is “In Mistrust We Trust: Can Democracy Survive When We Don’t Trust Our Leaders?” Copyright: Project Syndicate, 2013. Project-syndicate.org

OPINION & ANALYSIS

DECEMBER 16-22, 2013

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The case for global stimulus Ashoka Mody

s 2013 comes to an end, it looks like the world economy will remain stuck in low gear. For those reading the tea leaves of global recovery, the third-quarter GDP numbers offered no solace. While the United States is ahead of the pack, some of its gains could soon be lost, as accumulating inventories begin eroding profits. Despite glimmers of hope, the euro zone and Japan are struggling to cross the 1 percent threshold for annual economic growth. And the major emerging economies are all slowing, with Russia practically at a standstill. Not surprisingly, a catchphrase in economic-policy debates nowadays is “secular stagnation,” the idea that excess savings chronically dampen demand. The economist Robert Gordon has also argued that the world is low on economically productive ideas. But before we despair, there is work to be done. The coordinated fiscal stimulus that saved the world from economic collapse in 2009 disappeared too quickly, with governments shifting their focus to domestic politics and priorities. As domestic policy options have been exhausted, economic prospects have dimmed. A renewed emphasis on stimulus must be augmented by global coordination on the timing and content of stimulus measures.

deflation, liquidity traps, and increasingly pessimistic expectations could take hold. Fortunately, world leaders listened, agreeing in April 2009 at the G-20 Summit in London to provide a total of $5 trillion in fiscal stimulus. The US and Germany added stimu-

– could have continued the necessary healing. Countries now seem to think that monetary-policy measures are their only option. But, whereas fiscal stimulus boosts growth at home and abroad, enabling mutual reinforcement through world trade, monetary

called quantitative easing, or QE) have led to an effective US policy rate of -1.6 percent. QE helped American exports by weakening the dollar relative to other currencies. Once the Japanese engineered their own QE, the yen promptly depreciated. That has kept the euro strong.

Now, despite unfavorable political circumstances, Mr Blanchard of the IMF should make an even bolder call. These are still not “normal” times, and the “vicious cycles” persist. Another global fiscal stimulus – focused on public investment in infrastructure and education – would

The weakest of the “big three” developed economies – the euro zone – has thus been left with the strongest currency. In the third quarter of 2013, Germany’s export growth slowed and French exports fell. After a spike earlier in the year, Japan’s exports have also contracted. Only US exports have maintained some traction, thanks to the weaker dollar. In the 1930s, after the gold standard broke down, world leaders could not agree on coordinated reflation of the global economy. In his book Golden Fetters, the economist Barry Eichengreen argued that the lack of coordinated action dragged out the global recovery process. Such delays are costly, and risk allowing pathologies to fester, prolonging the healing process further.

deliver the adrenaline shot needed for a robust recovery. More public investment is twice blessed. It can shake the world out of its stupor; and it can safeguard against “secular stagnation.” The US, Germany, the United Kingdom, France, and China should act together to provide that boost. Otherwise, a sustainable global recovery may remain elusive, in which case 2014 could end in low gear as well. ●

The crisis was and remains global. Trade data tell the story: after increasing by about 7 percent annually in the decade before 2008, world trade fell faster than global GDP in 2009 (and more sharply than during the Great Depression). Once the brief stimulus-fueled recovery faded, growth in world trade again slowed quickly, falling to 2 percent year-onyear over the past 18 months. Disappointing export performance is largely responsible for the recent weakening of economic-growth prospects. At the end of 2008, when the scale of the impending economic destruction was not yet apparent, Olivier Blanchard, the International Monetary Fund’s chief economist, boldly called for a global fiscal stimulus, stating that, in these “not normal times,” the IMF’s usual advice – fiscal retrenchment and public-debt reduction – did not apply. He warned that if the international community did not come together, “vicious cycles” of

SHUTTERSTOCK

Trade decline

lus amounting to about 2 percent of GDP. And China’s banks pumped massive amounts of credit into the country’s economy, enabling it to sustain import demand, which was critical to the global recovery. But hubris rapidly set in, and parochial interests took over. Before the wounds had fully healed, the treatment was terminated.

“Another global fiscal stimulus – focused on public investment in infrastructure and education – would deliver the adrenaline shot needed for a robust recovery.”

Shirking responsibility The worst offenders were the US and Germany, which shirked the responsibility to protect the global common good that accompanies their status as economic hegemons. The United Kingdom, with its contrived rationale for fiscal austerity, was not much better. Fiscal stimulus by these three countries – together with smaller contributions from France and China

policy is guided primarily by domestic goals, and, in the short term, one country’s gain can be another’s loss. America leads the world in monetary-policy ambition. The researchers Cynthia Wu and Fan Dora Xia estimate that the US Federal Reserve’s open-ended asset purchases (so-

Ashoka Mody, a former mission chief for Germany and Ireland at the International Monetary Fund, is currently visiting professor of international economic policy at the Woodrow Wilson School of Public and International Affairs, Princeton University. Copyright: Project Syndicate, 2013. Project-syndicate.org

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CA Immo consolidation

Hotel Bristol changes hands

The Austrian fund buys the remaining 49 percent in an office portfolio from AXA

Starwood Hotels and Resorts sells one of Poland’s oldest hospitality schemes

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

Capital Park sees weak WSE debut Capital Park’s share price fell sharply after its debut on the Warsaw Stock Exchange on Friday. The firm’s shares shed 2.3 percent of their IPO price of z∏.6.5 shortly after trading started and finished the day at z∏.5.57, a 14.3% decline. Capital Park is the 21st company to enter the Warsaw bourse this year. ●

In this issue Sky Tower sold . . . . . . . . . . . . . .12 B4B complex delivered . . . . . . .12 Hotel Bristol deal . . . . . . . . . . . .14 Skanska land search . . . . . . . . .14 CA Immo acquisition . . . . . . . . .14 Atal bond debut . . . . . . . . . . . . .15 Senatorska green light . . . . . . .15

LC Corp buys Sky Tower for z∏.259 million To make the scheme more profitable and bring down its high vacancy rate, the investor wants to create a complementary tenant mix with the nearby Arkady Wroc∏awskie

The building is Poland’s second-tallest

Developer LC Corp (LCC) has agreed to pay z∏.259 million for 100 percent of shares in Sky Tower, a company managing

the office and retail area of the Sky Tower mixed-use complex in Wroc∏aw, Lower Silesia. The amount is payable by 2019. LCC purchased 29,700 sqm of retail space and 18,700 sqm of office space in the complex. The scheme’s 212-meter tower is the second-tallest building in Poland. The seller is LC Corp BV, an investment vehicle owned by Leszek Czarnecki, who is also the main stockholder in financial firm Getin Holding. Mr Czarnecki holds over 51 percent in LCC, including a nearly 48 percent stake owned by LC Corp BV. “This transaction will strengthen the commercial real estate segment of the Group, making further revenue diversification possible, which will offset the risk of residential market fluctuations,” Dariusz NiedoÊpia∏, LCC’s CEO, said. LCC is predominantly a residential developer, with a 10 percent share of Wroc∏aw’s

apartment market. In 2014 the firm wants to expand its activity in Warsaw’s residential market, where it plans to launch five new projects. Back in October, the developer announced it was implementing a new commercialization strategy aimed at bringing down the high vacancy rate at Sky Tower, which currently stands at 20 percent. The company wants to use the nearby scheme Arkady Wroc∏awskie, also owned by LCC, and create a complementary tenant mix that could attract more shoppers. Arkady Wroc∏awskie houses 130 stores on 31,000 sqm of retail space. “Joint management of the two projects, Arkady Wroc∏awskie and Sky Tower, will allow us to use the synergy between the two schemes, situated close to one another, by fostering natural client migration,” said Ma∏gorzata Danek, LCC’s management board Beata Socha member.

TriGranit delivers fourth installment of B4B complex Hungarian developer TriGranit has completed construction on the last building within the first phase of its Bonarka for Business (B4B) office complex. The first stage of the complex, comprising buildings dubbed A, B, C and D, together delivered 32,000 sqm of office space to the Kraków market. The developer had earlier finished construction on buildings A, B and C. TriGranit has also announced it would move forward with the second phase of

COURTESY OF TRIGRANIT

Real estate developer Globe Trade Centre (GTC) hopes to finalize the sale of Kraków shopping mall Galeria Kazimierz this year and is considering various options for Galeria Jurajska in Cz´stochowa, the company’s CEO Jacek Wachowicz said last Thursday. GTC will make a decision regarding the Galeria Jurajska mall by the end of January, Mr Wachowicz said. Selling the property is only one of the available options.

Mixed-use

COURTESY OF LC CORP

GTC mulls Galeria Jurajska sale

DECEMBER 16-22, 2013, LI 18/49

The first stage of the B4B complex offers 32,000 sqm of GLA

the B4B complex, this time consisting of three buildings and featuring 30,000 sqm of GLA. The second phase is set to be completed in the first quarter of 2015. The B4B complex was launched in 2008 but was almost immediately halted due to the outbreak of the global financial crisis. After a year and a half of hiatus, construction work resumed and the first two of the four buildings were delivered in 2011. Building C was opened in early BKS 2013.

LOKALE IMMOBILIA – REAL ESTATE

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DECEMBER 16-22, 2013

Skanska looking to buy land for development

Hospitality

COURTESY OF STARWOOD HOTELS

Hotel Bristol sold

After completing sales of four office projects this year worth nearly €300 million combined, Skanska is gearing up to buy more land for developing office schemes. “In 2014 we aim to purchase four new plots of land for office projects, at least one in Warsaw and three in regional cities,” Waldemar Olbryk, CEO of Skanska said. This year the developer sold Green Towers for €64 million and Green Day for €43.4 million, both schemes

located in Wroc∏aw. It also found buyers for two Warsawbased projects: a two-building complex – Nordea House and Corner Green – for 94.6 million, as well as Atrium 1, which was purchased by German real estate fund Deka-Immobilien Global for €94 million. Skanska is currently constructing several office projects in major Polish cities: the 30,000-sqm Kapelanka 42 in Kraków, due in 2014; the 35,000-sqm Dominikaƒski in Wroc∏aw, slated for 2015; and

the over 40,000-sqm Silesia Business Park in Katowice, launched in May this year. It is also in the preparatory stages of an office development near the Rondo Daszyƒskiego roundabout in Warsaw. In early December the developer also signed an agreement to build an office building which will house a branch of Poland’s Office of Technical Inspection in northeastern city of Bia∏ystok. The construction work is scheduled to be finBKS ished in mid-2015.

Starwood Hotels and Resorts has sold its Hotel Bristol to an international consortium of private investors. The hotel is located on ul. Krakowskie PrzedmieÊcie, in the capital’s city center, close to the Presidential Palace and the Old Town. Hotel Bristol, which now houses 168 rooms and 38

suites, is one of the oldest hotels in Poland. It was first opened in 1901 by Ignacy Paderewski, a famous Polish composer and pianist, who later became prime minister. The hotel’s most prominent former guests include: Pablo Picasso, Queen Elisabeth II, John F. Kennedy and the Rolling Stones. Earlier this year, the building underwent a €13 million refurbishment and was included in Starwood Hotels’ Luxury Collection, which comprises the hotelier’s 80 best hotels in the world. After the renovations,

AUCTION OF REPOSSESSED LAND Location: Słubice/Frankfurt (Oder) Details: A plot of land measuring 46,151 sqm, designated for construction of service facilities, with a functioning gas station. Access to main city streets, connected to utilities including plumbing, water, gas and electricity. Auction date and time: January 21, 2014, 11 am Auction location: Regional Court in Słubice Repossession officer: Cezary Grzelewski (095) 758-08-77

Auction concerns property in the mortgage register under no.: GW1S00009447/3

the lobby was enlarged and moved to its original place. Advisory Jones Lang LaSalle brokered the deal. “This deal underlines the strong investor appetite we are currently seeing for hotels in Central and Eastern Europe,” said Christoph Härle, CEO Continental Europe at Jones Lang LaSalle Hotels & Hospitality Group. “We are confident that the transaction markets will continue to develop positively in the coming years in Poland, one of the most vibrant economies in Beata Socha Europe.”

Atrium 1 was purchased by German real estate fund Deka-Immobilien Global for nearly €100 million

Transactions

CA Immo acquires remaining 49% of €280-mln Warsaw office portfolio ‘P1’ The Austrian fund has decided to consolidate its presence in Poland by becoming the sole owner of five office schemes Austrian Investment fund CA Immobilien Anlagen AG (CA Immo) has reached an agreement with AXA Investment Managers Deutschland to acquire AXA’s 49 percent stake in the “P1” portfolio in Warsaw, thus becoming its sole owner. Previously CA Immo held a 51 percent stake in the joint venture, which it acquired through a takeover of real estate fund Europolis in 2011. The “P1” portfolio consists of five office schemes located in the Polish capital, three of which are situated in Warsaw’s CBD. The sum of the transaction was not revealed, but the assets are valued at some €280 million. “The investment will consolidate our presence in prime areas of Warsaw while significantly raising our cash flow from investment properties over the long term,” said Bruno Ettenauer, CEO of CA

Immo. “This transaction also enables us to acquire attractive core properties below present market values, which will have a suitably positive impact on the NAV of CA Immo,” Mr Ettenauer added. The biggest scheme in the portfolio, Warsaw Towers, was built in 1999 and offers 21,000 sqm of GLA. It houses tenants such as Accenture, Deloitte, Procter & Gamble and Linklaters & Alliance. The other two schemes located in Warsaw’s city center are Saski Crescent and Saski Point, completed in 2003 and 1999 respectively. Saski Crescent features 15,000 sqm of office space, while Saski Point offers 8,000 sqm of GLA. The remaining projects, Sienna Center and the Bitwy Warszawskiej Business Center, comprise nearly 20,000 sqm each. Sienna Center in Warsaw’s Wola district was first built in 1998 and refurbished in 2010. The Bitwy Warszawskiej Business Center, located in the Ochota district, was completed in 2001 and is occupied by companies such as Grupa ˚ywiec and Shell. Beata Socha

COURTESY OF CA IMMO

Warsaw’s luxury 206room hotel has been sold to an international consortium of private investors

COURTESY OF SKANSKA

The hotel was originally opened in 1901

Warsaw Towers offers 21,000 sqm in Warsaw’s CBD

LOKALE IMMOBILIA – REAL ESTATE

DECEMBER 16-22, 2013

Residential

Beata Socha

COURTESY OF GLAUBICZ GARWOLI¡SKA CONSULTANTS

predominantly on Warsaw, where it is currently constructing a 178-apartment estate, dubbed Marina, in the Bia∏o∏´ka district. The developer is also looking to launch its first international project, in Prague, Czech Republic, in 2014. Atal sold 1,195 apartments between January and November this year, 75 percent more than in the corresponding period of 2012.

The controversial scheme could deliver 1,640 sqm of service and 4,071 sqm of office space

COURTESY OF ATAL

Residential developer Atal has introduced bonds worth z∏.25.46 million to the Catalyst bond market. The company will use the proceeds from the issue for acquiring new land for residential development. The subscription for 7,860 two-year A-series bonds and 17,600 three-year B-series bonds was carried out in September. The entire issue was purchased by institutional investors. “We have decided to proceed with a small issue because we have sufficient funds at our disposal to launch the investments we have planned,” Zbigniew Juroszek, Atal’s CEO said. The firm’s CEO also announced that the company is planning its IPO on the Warsaw Stock Exchange in late 2014 or early 2015. “What is preventing us from entering the main market of the WSE right now is the fact that investors project the situation on WIGDeweloperzy index onto our

company. This brings the perceived value of our company below its real value,” Mr Juroszek explained. The company is looking at selling as much as 25 percent of its shares. The value of the offer could go as high as z∏.100 million, the firm’s CEO said. Mr Juroszek added that Atal wants to expand its portfolio in major residential markets: Warsaw, Wroc∏aw, Kraków, ¸ódê and Katowice. The developer wants to focus

Senatorska gets green light for Warsaw Old Town project

Atal debuts on bond market The developer has also revealed its IPO plans

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The Marina estate, in Warsaw’s Bia∏o∏´ka district, will deliver 178 units

The voivode of the Mazowieckie voivodship has overturned a decision by Warsaw City Hall to halt the construction of a previously approved office project on ul. Podwale, near the city’s historic Plac Zamkowy square, opposite the Royal Castle. As a result, Senatorska Investment can continue with construction on the project. On November 15, Warsaw Mayor Hanna GronkiewiczWaltz ordered the stoppage of construction of the office complex. The decision followed

suspicions of a conflict of interest, as the City Hall official who initially signed off on the construction permit was the mother of one of the architects. Senatorska Investment subsequently issued an appeal with the voivodship executive. The conflict of interest was not the only cause of controversy surrounding the development. As the project lies adjacent to the city’s historic Old Town, which is listed as a UNESCO World Heritage site, the World Heritage Centre in Paris should have been

contacted prior to the launch of construction. However, neither the investor, nor city authorities informed the World Heritage Centre about the project. Senatorska Investment is building a mixed-used scheme with a total space of 9,500 sqm. The services portion will take up 1,640 sqm while the office section will measure 4,071 sqm. Additionally, the project entails construction of a 27space double-level underground parking lot. AS, BKS

MARKETS

www.wbj.pl

DECEMBER 16-22, 2013

Stocks report

world stock indices DJIA

NASDAQ

15,739.43 (Dec 12 close)

S&P500

3,998.40 (Dec 12 close)

-0.52% (for the week)

FTSE100

1,775.50 (Dec 12 close)

-0.86% (for the week)

DAX

6,439.96 (Dec 13 close)

-0.53% (for the week)

-1.71% (for the week)

Weak local market

NIKKEI 9,006.46 (Dec 13 close)

15,400.06 (Dec 13 close)

-1.81% (for the week)

0.65% (for the week)

CHANGE: 17.35% (year to Dec 12)

CHANGE: 28.47% (year to Dec 12)

CHANGE: 21.41% (year to Dec 12)

CHANGE: 6.84% (year to Dec 13)

CHANGE: 15.78% (year to Dec 13)

CHANGE: 44.09% (year to Dec 13)

52-week high: 16,174.51

52-week high: 4,081.78

52-week high: 1,813.55

52-week high: 6,876.60

52-week high: 9,424.83

52-week high: 15,942.60

52-week low: 12,883.89

52-week low: 2,951.04

52-week low: 1,398.11

52-week low: 5,873.40

52-week low: 7,418.84

52-week low: 9,687.70

¸ukasz Wróbel, Noble Securities Just before the opening bell on Wall Street last Friday, Poland’s WIG20 blue-chip index was trading at about 6 percent below the level where it closed in November. The selloff on the Warsaw Stock Exchange during the first half of December was one of the most pronounced among equity markets across the globe. By comparison, the S&P500 lost less than 2 percent during the period. The weakness of the domestic Polish market has also manifested itself in a poor outcome of the biggest initial public offering of the year – Energa – which closed more than 5 percent below its issue price. Investors have recently been abandoning the energy sector at a spectacular pace, and both PGE and Tauron have lost more than 10 percent. It’s even more worrisome when tak-

Major indices WIG

51,761.82 (December 13 close)

WIG30

2,565.27 (December 13 close)

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

02.12

29.11

28.11

18.11

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

2,500

02.12

51,000

29.11

2,560

28.11

52,000

27.11

2,620

26.11

53,000

25.11

2,680

22.11

54,000

21.11

2,740

20.11

55,000

19.11

2,800

18.11

56,000

27.11

52-week low: 2,286.99

26.11

Change year to December 13: -2.25%

25.11

52-week low: 43,159.57

22.11

52-week high: 2,760.93

Change year to December 13: 7.60%

21.11

Change for the week: -2.02%

20.11

52-week high: 55,246.40

19.11

Change for the week: -1.83%

Top 5 IDMSA TRAVELPL MABION PCCINTER SKOK

Closing 0.10 4.18 39.47 1.81 2.88

% change (week) 52-week high 25.00 0.22 16.11 6.80 14.31 41.30 13.12 2.00 12.94 2.91

52-week low 0.05 1.69 14.50 0.98 2.30

Top 5 CYFRPLSAT KGHM ALIOR TVN LPP

Closing 19.80 114.95 77.99 14.80 8898.00

% change (week) 2.54 1.91 1.48 0.54 0.54

52-week high 24.70 179.15 100.50 16.00 9600.00

52-week low 15.41 106.90 59.50 8.05 4353.77

Bottom 5 CASHFLOW PBOANIOLA EXILLON REMAK EFH

Closing 0.98 1.35 10.69 10.60 0.70

% change (week) -30.00 -28.95 -28.01 -26.49 -21.35

52-week low 0.91 0.96 5.70 10.60 0.34

Bottom 5 KERNEL PGNIG ENEA INGBSK TPSA

Closing 36.85 5.21 14.70 110.65 9.59

% change (week) -7.88 -7.79 -6.96 -5.63 -5.52

52-week high 70.00 6.76 16.20 123.50 12.16

52-week low 36.50 4.72 11.70 83.20 5.83

52-week high 2.90 2.74 16.09 34.35 2.00

Currency report

A week of low volatility

Other indices WIG20

2,429.67 (December 13 close)

mWIG40

3,366.43 (December 13 close)

Change for the week: -2.00%

52-week high: 2,628.36

Change for the week: -1.70%

52-week high: 3,572.51

Change year to December 13: -7.48%

52-week low: 2,177.02

Change year to December 13: 31.06%

52-week low: 2,471.39

sWIG80

14,310.43 (December 13 close)

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

25.11

22.11

21.11

20.11

19.11

NewConnect

352.31 (December 13 close)

SOURCE: WSE

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

02.12

29.11

28.11

18.11

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

02.12

340

29.11

14,000 28.11

343

27.11

14,400

26.11

346

25.11

14,800

22.11

349

21.11

15,200

20.11

352

19.11

15,600

18.11

355

27.11

52-week low: 296.29

26.11

Change year to December 13: 6.05%

25.11

52-week low: 10,242.71

22.11

52-week high: 355.36

Change year to December 13: 35.89%

21.11

Change for the week: 0.43%

20.11

52-week high: 15,093.78

19.11

Change for the week: -1.21%

16,000

Adam Narczewski X-Trade Brokers DM SA

18.11

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

02.12

3,200

29.11

3,280

2,300 28.11

2,380

27.11

3,360

26.11

2,460

25.11

3,440

22.11

2,540

21.11

3,520

20.11

2,620

19.11

3,600

18.11

2,700

ing into consideration the fact that institutional investors can’t complain about a lack of funds, because the inflows of capital to the equity funds have been outweighing outflows for several months in a row. Fresh economic data from Poland confirms a lack of the inflationary pressure on the horizon (prices of consumer goods and services rose in November by 0.6 percent y/y) and that the structure of GDP growth is gradually switching from entirely export-driven towards a more balanced growth based on internal demand. This week markets will focus on the important US Federal Reserve decision regarding changes in the scale of its asset purchase program, as well as on the Eurogroup and ECOFIN meetings, which will be discussing reforms to the banking sector. ●

The lack of crucial macroeconomic data and decisions from central banks decreased volatility in the currencies markets. The EUR/USD, which is the driver for many financial instruments, was trading within a very narrow range of $1.3740-1.3800 over the past week. In Poland, next year’s budget issue and the government’s changes to the pension plan scheme are receiving significant media attention. Both topics are more or less being ignored by traders – the z∏oty market has been calm and volatility has been extremely low. The only fact worth mentioning is that yields on 10year government bonds have declined to around 4.50 percent (from 4.60 percent). This is understandable since the stock market is falling

(finally, since stock valuations have been exaggerated for some time) and funds are moved to the fixed-income markets. Against the euro, the z∏oty was trading around the z∏.4.18 level throughout the entire week, while the USD/PLN held close to z∏.3.03. This week should be more volatile and a depreciation of the z∏oty is probable. Much will depend on what the US Federal Reserve decides to do at its meeting on Tuesday and Wednesday. There is a slight chance that the QE3 program will be reduced, although most market participants expect such a move to happen in the first quarter of 2014. This week the z∏oty could test z∏.4.20 against the euro and z∏.3.06 against the US dollar. ●

currency rates 2.9397 13.12

12.12

11.12

10.12

SOURCE: NBP

2.9588

2.9661

2.9474 2.9623 09.12

0.0933

3.0021 2.90

06.12

13.12

12.12

11.12

10.12

09.12

06.12

13.12

12.12

11.12

10.12

09.12

0.092

06.12

100JPY/PLN

3.01

0.0932

0.0929

0.0932

0.0930

3.4228

3.4252

3.4221

3.4181

3.4238

4.9708 13.12

12.12

11.12

10.12

09.12

RUB/PLN

0.094

3.40

06.12

4.96

3.4211

CHF/PLN

3.43

4.9896

4.9849

4.9996

4.9995

5.0168

3.0432 13.12

12.12

11.12

10.12

09.12

3.03

06.12

GBP/PLN

5.09

3.0415

3.0386

3.0425

3.0534

3.0673

4.1844 13.12

12.12

11.12

10.12

09.12

4.18

06.12

USD/PLN

3.10

4.1878

4.1803

4.1822

4.1925

4.1883

EUR/PLN

4.21

THE LIST

DECEMBER 16-22, 2013

www.wbj.pl

Financial Services

Leasing Companies Ranked by revenue from leasing in 2012

Rank

A guide to Polish business and industry

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

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

Revenue from leasing (z∏. mln)

Total revenue (z∏. mln)

Net profit (z∏. mln)

Net value of Number of Leasing: leased leasing / assets contracts Operational Financial (z∏. mln) signed

Leased goods

Currency

Leasing contract duration

Additional services

Total number of employees / Year founded in Poland

Ownership: Polish / Foreign

Transport equipment; machinery and equipment; IT and office equipment; real estate; yachts and boats

PLN; EUR

Up to 72 months

Insurance; assistance with formalities

542 1998

Raiffeisen Bank Polska 50% Raiffeisen Leasing International - 50%

3-4 years

Car purchasing assistance; vehicle registration; insurance; damage claims management; traffic ticket management; environmental fee; RTV subscription payments; tire management; vehicle inspactions and repairs; fuel cards

120 2001

None LeasePlan Corporation 100%

Insurance; assistance; extended warranty; life insurance; asset policies; vehicle registration; drivers' legal protection; fuel cards

717 1991

Rados∏aw Woêniak; None Credit Agricole - 100% Jacques Fenwick

Top local executive / Title

2012 / 2011 / 2010 / 2009

Raiffeisen-Leasing Polska SA ul. Prosta 51, 00-838 Warsaw 1 22 326-3600/22 325-3601 leasing.klient@raiffeisen.pl www.rl.com.pl

487.8 405.1 375.4 408.7

85.3 46.2 35.7 37.5

2,215.0 2,686.7 2,377.5 1,528.4

16,899 20,906 20,046 14,182

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

451.8 437.8 363.7 311.2

573.5 438.7 373.9 322.9

22.9 15.2 14.6 10.6

376.0 355.7 288.9 230.4

7,851 7,718 4,715 3,758

✓ ✓

Vehicles up to 3.5 tons load capacity

PLN

Europejski Fundusz Leasingowy SA Pl. Orlàt Lwowskich 1, 53-605 Wroc∏aw 3 801-677-666 info@efl.com.pl www.efl.pl

436.8 435.0 434.1 468.0

538.1 525.7 556.4 610.0

9.2 63.0 92.6 121.0

2,480.5 2,991.3 3,095.6 2,619.8

29,809 34,527 37,191 34,521

✓ ✓

Road transport equipment; machinery and equipment; computer hardware and software; real estate

PLN; EUR; CHF

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

417.1 418.3 390.4 352.9

539.5 540.0 476.7 435.9

32.9 -2.9 -13.2 -30.9

394.0 447.6 425.4 371.2

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

✓ ✓

Vehicles up to 3.5 tons load capacity

PLN; EUR

2-5 years

Vehicle servicing; tires; insurance; reports; fuel cards; replacement cars; damage claims management; assistance

180 1995

None Fleet Holdings - 100%

Jerzy Kobyliƒski

BZ WBK Leasing SA ul. Chlebowa 4/8, 61-003 Poznaƒ 5 61 850-3525/61 850-3509 leasing24@bzwbk.pl www.leasing24.pl

304.6 284.9 259.0 272.0

397.6 376.4 346.0 340.0

50.4 31.1 11.0 33.0

1,707.0 1,536.0 1,321.7 1,319.2

11,573 11,520 11,199 10,751

✓ ✓

Vehicles; machinery and equipment; real estate; airplanes; boats

PLN; EUR

1-10 years

Insurance; fuel cards

300 1999

Grupa BZ WBK WND

Szymon Kamiƒski

VB Leasing Polska SA ul. Strzegomska 42B, 53-611 Wroc∏aw 6 71 334-4900/71 334-4901 biuro@vbleasing.pl www.vbleasing.pl

304.5 300.3 290.2 349.0

375.7 368.9 345.4 394.5

43.3 35.9 -43.8 14.8

943.1 1,116.9 1,068.6 1,093.2

9,500 10,600 10,700 11,500

✓ ✓

Movables

PLN; EUR

12-72 months

Assistance; lawyer; GAP; security package; truck assistance

300 2000

None Volksbank - 50%; VR Leasing - 50%

Marek Bauer; Krzysztof Famulski

Millennium Leasing Sp. z o.o. ul. ˚aryna 2A, 02-593 Warsaw 7 22 598-2700/22 598-2710 centrum@millennium-leasing.pl www.millennium-leasing.pl

255.1 242.8 225.1 245.7

290.4 277.5 260.7 263.1

46.1 48.9 26.5 8.9

1,740.6 1,914.0 1,683.6 1,310.0

8,547 9,557 9,782 6,439

✓ ✓

Transport equipment: rail, sea and air fleet; machinery and equipment; IT and office equipment; real estate

PLN; EUR; USD

1-10 years

Insurance: transport, property, from financial loss in the event of theft, life; assistance; legal protection

254 1991

Bank Millennium 100% None

Wojciech Rybak

BNP Paribas Lease Group Sp. z o.o. ul. Suwak 3, 02-676 Warsaw 8 22 566-9688/22 566-9659 contact.leasing.pl@bnpparibas.com www.leasingsolutions.bnpparibas.pl

152.6 158.5 136.2 159.8

166.5 177.4 166.7 192.5

38.2 39.7 -65.2 7.4

1,192.0 881.4 762.4 595.2

6,150 5,387 4,578 3,136

✓ ✓

Real estate; transport equipment; agricultural equipment; industrial machinery and equipment; computers and office equipment

PLN; EUR

WND

Equipment registration; asset insurance

WND 1998

WND BNP Paribas Lease Group

Stephane Halys

Deutsche Leasing Polska SA ul. Wybrze˝e Gdyƒskie 6A, 01-531 Warsaw 9 22 504-9000/22 504-9100 info@dlp.pl www.dlp.pl

108.2 97.7 105.6 127.9

WND WND WND WND

442.6 451.7 509.6 746.7

650 555 554 708

✓ ✓

Industrial machinery and equipment; production lines; road and rail transport equipment

PLN; EUR

12-72 months

Insurance

50 1997

None Krzysztof Brzeziƒski Deutsche Sparkassen Board Member Leasing - 100%

Athlon Car Lease Polska Sp. z o.o. ul. Bielaƒska 12, 00-085 Warsaw 10 22 279-4646/22 279-4600 info@athloncarlease.pl www.athloncarlease.pl

52.7 38.4 24.8 13.0

70.6 43.6 24.5 13.0

1.7 0.3 -1.9 -5.2

129.7 95.8 38.8 38.6

1271 978 WND WND

✓ -

Vehicles up to 3.5 tons load capacity

PLN

24-48 months

Insurance; damage claims management; technical maintenance; tires; Athlon Assistance; replacement cars; fuel cards; reports

30 2007

None Athlon Beheer International - 100%

NL-Leasing Polska Sp. z o.o. ul. Lubowidzka 33, 80-174 Gdaƒsk 11 58 300-0059/58 322-1795 office@nl-leasing.pl www.nl-leasing.pl

32.9 35.6 32.3 WND

38.2 42.4 39.7 WND

3.7 1.0 3.0 WND

46.1 49.3 48.9 354.0

342 389 431 WND

✓ -

Transport equipment

PLN; EUR

WND

Insurance

WND 2004

WND - 48% WND - 52%

Notes: WND = Would Not Disclose. Research for The List was conducted in March 2013. Number of employees and ownership structure are as of March 2013. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. Footnotes: (1) Planned net profit of mln z∏. 71.4 decreased by write-downs of deffered tax assets.

✓ ✓

WND

Arkadiusz Etryk President

S∏awomir Wontrucki Managing Director

Vice Presidents

President

Board Members

President

General Director

Eric van Vliet President

Arkadiusz Trojakowski President

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

SPORTS

www.wbj.pl

DECEMBER 16-22, 2013

Winter sports

Soccer

Poland a speed-skating powerhouse?

Legia avoids humiliation

Polish long-track speed skaters are having their best season ever

Polish speed skaters are so far having their best season in history – could they earn medals in Sochi this winter? This year Polish long-track speed skaters have regularly finished world cup events with spots on the podium, and have already beaten a number of national records. All this has led experts to call this season Poland’s best ever, with pundits hoping the success will translate into medals at the upcoming Sochi Winter Olympic Games in February.

When the Polish women’s long-track team took the bronze in the 2010 Olympics, it was a surprise. This time, if the same team comes back without any hardware it will be a disappointment. The team has been seeded second for the games. Right now, only the longtrack teams have clinched qualifying spots for the games (the men’s team will also race in Sochi, but won’t be seeded). For individual long-track skaters, however, the list of competitors has not yet been decided. Currently eight Polish skaters are placed high enough in the International Skating Union rankings to be

able to book their tickets to Sochi, and there’s still a good chance that other Polish skaters could join them. The string of great results this season are a surprise to many. Poland has only four ice rinks suitable for speed skaters, and all of them are outdoors, while the Olympic events are being held indoors. Even worse, these facilities operate just three months a year, as the people managing the rinks usually wait for temperatures to drop below zero so they can save on power bills, forcing the skaters to train abroad for most of the season. Jacek Ciesnowski

It was another terrible season for Polish soccer in European competitions. Only Legia Warszawa managed to advance to the group stage of the Europa League tournament, and that only after failing to get through to the group stage of the Champions League. Still, the Warsaw side’s international campaign was a disaster. Until the final game of the tournament the team had lost all of its games and had failed even to score a sin-

gle goal. Sure, they had their bad breaks: opponents stopping the ball centimeters from the goal line, poor calls by referees that turned legitimate goals into phantom offside penalties. Indeed, in most of their games the team competed toeto-toe with its opponents. But since this is soccer and not figure skating, there were no points for style. After five of six games Legia was left with the worst record in the history of the Europa League, with five losses, eight goals conceded and zero scored. With no chance to advance to the playoff stage, Legia still had an opportunity to make history, although not the kind that fans would have been proud of. If the Warsaw side

had lost its last game against Cyprus’ Apollon Limassol without scoring a goal, they would officially have become the worst team in the history of the competition. Luckily for their fans, Legia players managed to avoid that fate, comfortably beating their opponents 2-0 after goals by Tomasz Jod∏owiec and Tomasz Brzyski. The Warsaw side ended this season’s European campaign in last place in its group, with three points. Apollon, with four points, was third, while the first two places in the division, and promotion to the playoff phase, were won by Turkey’s Trabzonspor (14 points) and Italy’s Lazio (12 points). Jacek Ciesnowski

COURTESY OF T-MOBILE EKSTRAKLASA/X-NEWS.PL

SHUTTERSTOCK

Poland’s top club team won its last Europa League match, narrowly staving off a campaign without winning a game or scoring a goal

Tomasz Brzyski scored one of the only two Legia goals in the team’s Europa League campaign this year

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

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

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

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

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

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

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

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

LIFESTYLE

DECEMBER 16-22, 2013

Exhibition

www.wbj.pl

Opera

Queen of Versailles One night only A Night in Venice January 1 Congress Hall Warsaw

Maria Leszczyƒska was a daughter of the exiled Polish King Stanis∏aw Leszczyƒski. At the age of 22 she married 15year-old Louis XV, thus becoming the queen consort of France. Ms Leszczyƒska was chosen from 99 European princesses that were deemed eligible to marry the young king, and the couple went on to have 10 children. The queen was a grandmother to three French kings. The exhibition at the Warsaw Royal Castle showcases her life in Versailles, where she lived during her tenure. The exhibition shows the everyday life of Ms Leszczyƒska, her marriage, maternity, friends and family, as well as her passion for music and painting. The display is composed of carefully selected family portraits, original elements of decorations of the queen’s apartment, which include a painting series titled “Five Senses” by Jean-Baptiste Oudry. Other works of art include pictures which were painted with her participation,

Is an operetta a good cure for a hangover? You can find out on the first day of the new year at a one-night-only showing of Johann Strauss’s “A Night in Venice.” To prolong the festivities you’ll be transported to Venice and its magnificent carnival parties. This lighthearted, farcical story of mistaken identity follows the Duke of Urbino and

his quest to seduce Barbara, who is married to a local senator: 19th-century hilarity ensues. Sure, the lyrics may not be very sophisticated. For example, one of the protagonists calls his love interest “a girl as stupid as this oyster, and yet just as appetizing and just as worthy of catching!” But it’s the music of Mr Strauss which manages to captivate the audience and this is the operetta’s main attraction. Lavish costumes, beautiful music and humorous librettos are just what you might need for a perfect start to the new

year. And for a few hours, you can feel like you’re attending a huge ball in the thick of the Venice carnival. The operetta was earlier performed in Gliwice and thanks to its success it will be shown for one night only in Warsaw. The costumes were designed by Barbara Ptak, who worked on Polish movie classics such as Academy award nominees “Promised Land,” “Pharaoh” and Roman Polaƒski’s first feature film “Knife in the Water.” Jacek Ciesnowski

Tickets start at z∏.100

COURTESY OF WIKIMEDIA COMMONS

The Versailles of Maria Leszczyƒska Ongoing until January 5 Royal Castle in Warsaw

or commissioned by her, such as the splendid cabinet by the renowned ébéniste RobertAntoine Gaudreaus, ordered for one of her drawing rooms. Most of the exhibits come directly from Versailles, others were provided by various French and Polish cultural

institutions. Works from such artists as Jean-Baptiste Vanloo, Hyacinthe Rigaud, Alexander Roslin, Pierre Gobert, AlexisSimon Belle, François-Hubert Drouais and Joseph-Marie Vien are on display. Jacek Ciesnowski

COURTESY OF EVENT ORGANIZERS

Maria Leszczyƒska portrait by Jean-Marc Nattier

A Night in Venice

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