WBJ #14 2013

Poland remembers the Iron Lady

Still-smoldering Smolensk

Margaret Thatcher’s death was marked by glowing tributes from Poland’s political establishment

Three years on, the tragic plane crash inspires more division – and politicization – than ever 4

WWW.WBJ.PL

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VOLUME 19, NUMBER 14 • APRIL 15-21, 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

Justice for all?

COURTESY OF YAREAL POLSKA

REAL ESTATE

In an exclusive interview, Justice Minister Jaros∏aw Gowin discusses his plans for reforming Poland’s legal system, deregulation, and why he opposes civil unions for homosexuals

• Oxygen park • HB Reavis interview • Warsaw Spire troubles 15-17

Euro bonds or euro exit?

12-13

Business magnate George Soros says Germany has a choice to make – and it’s not an easy one 14

Iraq, 10 years on Saad Jawad Kindeel, Iraq’s ambassador to Poland, talks about where his country is today, 10 years after the US invasion 8-9

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Made in Poland . . . . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . . .12-13 Opinion & Analysis . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

REPORTER

In this issue

Friends like these Wrong pipe Leftist politicians are banding PM Donald Tusk wants to know why he together for a summer congress, wasn’t informed of a potential Russianbut can’t agree on who’s invited 3 sponsored pipeline through Poland

4

2

NEWS

www.wbj.pl

Poland closer to own missile defense

IN THE SPOTLIGHT

Numbers in the News

The Warsaw Ghetto Uprising

Polish natural gas pipeline operator GazSystem and its Czech peer Net4Gas are planning the construction of a new gas link between the two countries. The estimated cost of the 107.6kilometer pipeline is €214 million. It could transfer 6-10 billion cubic meters from the Czech Republic to Poland and 5 billion cubic meters in the opposite direction.

SHUTTERSTOCK

President Bronis∏aw Komorowski signed legislation last Friday that foresees the construction of an air defense system in Poland. According to the new law, construction of the system will start in 2014. About 4-5 percent of the defense ministry’s budget will be earmarked for the purpose. Poland’s system will be integrated into a larger system managed

by NATO.

New PolishCzech gas link to be built

APRIL 15-21, 2013

The Monument to the Heroes of the Ghetto, Warsaw This Thursday, April 19, will mark the 70th anniversary of the Warsaw Ghetto Uprising, a symbol of Jewish resistance against the Nazis during World War II. The monthlong revolt ended on May 16, 1943, and claimed 13,000 Jewish lives, while thousands of survivors were captured and sent to concentration

camps, where they were murdered.

The uprising erupted when reports of the mass-murder of Jews in concentration camps finally reached the citizens of the Warsaw Ghetto. They decided to revolt, though from the beginning they were significantly outnumbered. According to various estimates,

some 1,000 Jewish fighters took on more than 2,000 welltrained and well-equipped Nazis.

To this day, the uprising is a symbol of struggle against far greater power, and a refusal to give in to the Nazi-led Holocaust. After the fight was over, little remained of the area were the ghetto was located.

“The former Jewish quarter of Warsaw is no longer in existence. Apart from eight buildings (police barracks, hospital, and accommodations for housing workingparties) the former ghetto is completely destroyed. Only the dividing walls are left standing where no explosions were carried out,” wrote Jürgen Stroop, an SS commander who was in charge of quashing the revolt, in his report after the uprising.

The main ceremony to commemorate the anniversary will be held at Warsaw’s Monument to the Heroes of the Ghetto.

Participants will include President Bronis∏aw Komorowski, Mayor of Warsaw Hanna Gronkiewicz-Waltz, other highranking politicians, representatives of Jewish communities and former insurgents.

Jacek Ciesnowski

z∏.17.4 billion is how much money Poles living abroad transferred to Poland in 2012, according to the National Bank of Poland.

180,000 is how many Poles are employed by US-owned buisnesses in Poland.

14.3% was Poland’s unemployment rate in March, according to preliminary estimates from the Ministry of Labor.

z∏.1.1 billion is the value of loans state-owned Bank Gospodarstwa Krajowego has granted so far within the Polish Investments program.

Quote of the Week “Lady Thatcher, fearless champion of liberty, stood up for captive nations, helped free world win the Cold War. Deserves statue in Poland.”

Foreign Affairs Minister Rados∏aw Sikorski, on Twitter after hearing news of the death of former UK Prime Minister Margaret Thatcher.

Figures in focus Hard-earned euros?

Labor costs per hour in selected EU states (in €) 40 35 30

On WBJ.pl

Play operator said to be planning IPO

No WSE session on April 16 With the Warsaw Stock Exchange launching its new trading platform as planned on April 15, there will be no session on the following day. The WSE’s CEO Adam Maciejewski said that one day without a trading session will help minimize the risks from changing the trading platform, especially when it comes to clearing transactions in brokerage houses. ●

20

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Today, there are few world-class asset managers in CEE. But that trend is changing. What does it take to become a good asset manager?

Mark Twomey, founder of Tara HRC, explains.

Log on to WBJ.pl to read more.

15 10

ed

Managing your assets

Sw

P4, the operator of the Play mobile telephony network, is said to be preparing a stock exchange debut, Dziennik Gazeta Prawna reported.

According to market sources, an IPO may be the most profitable way for the company’s current owners to exit the investment. P4 has been co-owned by two investment funds, Greece-based Tollerton (50.3%) and Iceland’s Novator (49.7%) for seven years.

* Highest in EU ** Lowest in EU

25

Source: Eurostat

Company index

Calendar

April/May 17-21

FASHIONPHILOSOPHY FASHION WEEK POLAND

Event:

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

Location:

18

WORKS ON PAPER AUCTION

Event:

185 works will be auctioned, some of them by artists whose works are rarely sold in the Polish art market.

DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw www.desa.pl

Location:

Web:

18

PHOTOVOLTAICS – THE ENERGY OF TOMORROW

Event:

The conference will focus on forecasts for the Polish photovoltaics market development.

Among the speakers will be the author of the new Renewable Energy Law – former Deputy Prime Minister Waldemar Pawlak.

Admiral Markets ........................................7 Millennium Bank ........................................5

Web:

Radisson Blu Centrum Hotel, ul. Grzybowska 24, Warsaw www.energiajutra.eu

23

EVENT: JEWELRY AUCTION

Event:

Pieces of jewelry from art deco and other periods will go under the hammer. A lot of spring colors and flower themes.

DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw www.desa.pl

Location:

Location:

Web:

Apollo-Rida Poland ..................................15 Moody’s ........................................................5 Apple ..........................................................23 NCRE Investment Limited ........................16 AREA Property Partners ..........................15 Net4Gas ......................................................2 Atal Group..................................................15 Bank Gospodarstwa Krajowego ............2, 3 Nordea Bank ..........................................5, 7 BC Partners ................................................6 Novator ........................................................2 Blackmagic Design ..................................23 Opel..............................................................6 BMW ............................................................9 P4 ................................................................2 BridgePoint..................................................6 Patpol ..........................................................9 Bupa ............................................................6 Pekao ........................................................20 Canon ........................................................23 CBOS............................................................3 PGNiG ......................................................4, 6 CEE Stock Exchange Group........................6 PKN Orlen..................................................20 Central European

APRIL 30-MAY 2 ANNUAL INVESTMENT MEETING Event:

Location:

Web:

AIM is an emerging markets FDI-focused event that blends a trade fair with intellectual features aimed at enriching institutional, corporate and individual investors attending with a comprehensive set of guidelines for their future investment decisions in high-growth regions.

Dubai International Convention and Exhibition Center, Dubai, UAE www.aimcongress.com

Correction: In the April 2, 2013 edition of WBJ, in the story entitled “Wroc∏aw warehouse market growing bigger,” a caption misidentified the warehouse in the picture accompanying the story. The warehouse pictured was Prologis Park Wroc∏aw III, not Panattoni Park Wroc∏aw II. WBJ apologizes for the error.

Distribution Corporation ......................5, 20 CSOB............................................................5 Dom Development ....................................15 Echo Investment........................................17

PKO BP ........................................................5 PKP ............................................................17 Polnord ......................................................15 Polonus ......................................................17

Ernst & Young..............................................6 Polservice ....................................................9 EuRoPol Gaz................................................4 Robyg ..................................................15, 16 Fiat ..............................................................6 Rockspring ................................................16 Fineus ..........................................................9 Ronson ......................................................15 Gaz-System ................................................2 Russian Alcohol Group................................5 Gazprom ......................................................4 Ghelamco ..................................................15 Segro..........................................................15 HB Reavis ............................................15, 17 Sony ..........................................................23 Homo Homini ..............................................3 Soros Fund Management..........................14 JEMS Architekci ........................................16 Tara HRC ....................................................2 KBC ..............................................................5 KGHM ........................................................20 Lux Med ......................................................6

Tollerton ......................................................2 Volkswagen..................................................6

Microsoft......................................................9 Warsaw Stock Exchange ..2, 5, 6, 15, 16, 20 Mid Europa Partners ..................................6 Yareal Polska ......................................15, 16

NEWS

APRIL 15-21, 2013

www.wbj.pl

Politics

Civic Platform with 25% support

Left confused

According to a recent poll

by CBOS, the ruling Civic Platform has the support of 25% of voters, unchanged from a similar poll a month earlier.

Support for the main opposition party Law and Justice is at 23%, one percentage point higher than a month ago. The Democratic Left Alliance has support of 8%, and junior coalition partner Polish People’s Party would get 6% of the vote.

None of the other parties garnered more than the 5% that would be needed to enter parliament, if elections were held today.

Poland’s leftist parties seem unsure of whether to unite or bleed each other to death

Government passes draft energy law

COURTESY OF SLD

Top leftist politicians such as former president Aleksander KwaÊniewski, Democratic Left Alliance (SLD) leader and ex-PM Leszek Miller, as well as Palikot Movement’s (RP) leader Janusz Palikot threw Poland’s political scene into confusion last week over the issue of their possible cooperation in future elections.

In February this year, Aleksander KwaÊniewski, who co-founded SLD, announced he would create a joint centerleft electoral list for the 2014 European Parliamentary elections with Palikot’s Movement. He also invited all leftist parties, including SLD, to join the new initiative, called Europe Plus.

But Mr Miller strongly criticized Mr KwaÊniewski’s association with the flamboyant and controversial Janusz Palikot, saying the former president should cooperate on a voting list with SLD and dump Mr Palikot. SLD even expelled one of its best-known MPs, Ryszard Kalisz, for his cooperation with the Europe Plus movement, seen as direct

Leszek Miller invited all former presidents to his party congress in June competition to their party.

Who has the power?

Then last week, SLD announced that Mr KwaÊniewski would be a guest at their party congress in June, which is also expected to host Solidarity legend and former President Lech Wa∏´sa, as well as the last president during communist rule, Wojciech Jaruzelski.

In response, Palikot’s Movement announced that Mr KwaÊniewski had made his attendance conditional on

not building a real alternative to [conservative parties] Civic Platform and Law and Justice,” said Mr Palikot.

“I don’t have to be at the congress,” he added. “That same day we [Palikot’s Movement] are capable of organizing an event attended by 20,000 people. We’ll see who has the real power.”

Janusz Palikot also being invited to the event. Mr Miller refuted this claim, saying the former president had attached no conditions to his attendance at the congress.

Shortly thereafter, Mr Palikot held a press conference at which he insisted that Mr KwaÊniewski had informed him he would attend the congress only if Mr Palikot was also invited.

Mr Palikot blasted Mr Miller saying, “We are making a laughing stock of the left and

Uniting would be smart politics An April Homo Homini survey had the Democratic Left

Alliance with 13 percent support while Palikot’s Movement polled at 4 percent. Ever since Palikot’s Movement burst on the scene in the 2011 parliamentary elections, where it won 10 percent of the vote, competition between it and SLD has been heated.

In a March interview, Aleksander KwaÊniewski told WBJ that a leftist list with all the major players could garner “20 percent or more” at the next elections.

Remi Adekoya

Domestic

Smolensk more divisive than ever leader of the opposition Law and Justice, and twin brother of the late president, has since described the report as a “pack of lies” suggesting foul play was involved.

‘On our side is logic’ On the eve of a highly politicized third anniversary of the tragic April 10, 2010 plane crash in Smolensk, Russia, which killed President Lech Kaczyƒski, his wife and 95 others, a Homo Homini poll revealed that 32 percent of Poles now believe that the catastrophe was no accident but in fact an assassination.

Just under half – 49 percent – of Poles believe the findings of the Miller Report, which was the conclusion of the official government investigation into the catastrophe, led by former Interior Minister Jerzy Miller. The Miller Report blamed pilot error and the poor work of Russian controllers at the Smolensk airport for the catastrophe.

But Jaros∏aw Kaczyƒski,

In a speech on the day of the Smolensk anniversary, Mr Kaczyƒski said “April 10, 2013 showed with all clarity that the patriotic camp in Poland is able to defend our country from lies.”

Adam Hofman, spokesperson for Law and Justice, went further, saying that “all the available data indicates that the only theory which holds water is that the plane was attacked.”

“On our side is critical thinking, rationality, professors, data, lectures, while on the other side we have people who behave like members of a sect. People who believe in Miller’s report do so based solely on faith,” he said.

Official commemoration Meanwhile, early in the morn-

ing of April 10, Prime Minister Donald Tusk, who has been accused by Law and Justice MPs of having a hand in Lech Kaczyƒski’s death, laid a wreath at the Powàzki Cemetery in Warsaw, where a monument to the victims stands.

As the PM left to pay an official visit to Nigeria, a government delegation without him took part in further commemorations organized at Powàzki Cemetery, the Presidential Palace and at Kraków’s Wawel Castle, where the late Mr Kaczyƒski is buried. Several masses were also held to pray for the victims.

Meanwhile, supporters of Jaros∏aw Kaczyƒski organized their own commemoration and held a demonstration outside the Presidential Palace demanding a new investigation into the catastrophe. Law and Justice MP Antoni Macierewicz also presented his own report on the crash, stressing the alleged role of secret services.

Mr Macierewicz maintains

that three people survived the original plane crash but were transported away from the scene mysteriously and never heard from again. He says he

has “three independent sources” who confirm the report, but declined to give names.

Remi Adekoya

The Polish government has approved a draft law on renewable energy proposed by a group of MPs designed to comply with EU law. Prime Minister Donald Tusk said the the proposal would help Poland avoid European Commission fines.

z∏.1.1 billion in Polish Investment loans State-owned lender Bank Gospodarstwa Krajowego has already granted z∏.1.1 billion in loans within the statesponsored investment vehicle Polish Investments program, the bank’s deputy CEO Piotr Lasecki told PAP. “We are analyzing further projects,” he added.

Polish officials in international posts?

COURTESY OF WIKIMEDIA COMMONS

Three years after the plane crash, a third of Poles believe President Lech Kaczyƒski was murdered in Russia

3

Mr Hofman says “logic” is on his party’s side

The Ministry of Foreign Affairs has ordered Polish ambassadors to promote Marcin Korolec, the minister of the environment, for the position of director general of the United Nations Industrial Development Organisation (UNIDO), Rzeczpospolita reported.

The ministry also wants to promote Piotr Dmochowski-Lipski for the post of executive secretary of the European Telecommunications Satellite Organisation (EUTELSAT-IGO). ●

4

NEWS

www.wbj.pl

APRIL 15-21, 2013

Politics

Thatcher praised in Poland

PM orders investigation over pipeline mix-up After being caught flatfooted, the PM wants to know why he was left in the dark over a pipeline deal that was signed with Gazprom

Polish politicians spoke warmly of the achievements of Margaret Thatcher, who succumbed to a stroke at the age of 87 last Monday. The former prime minister of the United Kingdom between 1979 and 1990 will be remembered as one of the world leaders who spoke out decisively against communism in the 1980s.

Foreign Minister Rados∏aw Sikorski said Ms Thatcher “stood on the side of the angels in the Cold War and provided leadership for as long as the Soviet Union needed to be challenged.”

Mr Sikorski added that “until she entered the fray, it was assumed that capitalism was ultimately going to converge with communism – and that the role of the state was inevitably getting bigger, but she put an end to that.”

Lech Wa∏´sa, the legendary

SHUTTERSTOCK

Polish politicians expressed admiration and gratitude for Margaret Thatcher’s role in bringing the Cold War to an end

Margaret Thatcher is revered by many in Poland for her strong stance against communism Solidarity trade union leader and freedom fighter, who met with Ms Thatcher in the 1980s and 1990s, said she represented a “higher level of democracy.”

“She had a team of 3-5 people, who always discussed and agreed on everything earlier … in her democracy she had everything discussed and agreed upon and only then started to act. Other politicians took decisions and then nobody followed them, nobody implemented their

plans,” Mr Wa∏´sa said.

Mr Wa∏esa also said that although the former UK prime minister had been no fan of labor unions, she “admired me as an electrician and worker who had ideas. I told her that our labor union is different, it’s fighting for freedom.”

A book of condolences was opened at the British Embassy in Warsaw in tribute to Margaret Thatcher.

RA, KW

Prime Minister Donald Tusk wants to know why he wasn’t informed that Polish-pipeline operator EuRoPol Gaz and Gazprom were set to sign a memorandum on a feasibility study for building a gas pipeline through Poland, and has asked Interior Minister Bart∏omiej Sienkiewicz to investigate.

On April 3, Russian President Vladimir Putin instructed Gazprom CEO Alexey Miller to consider a plan for the Russian company to build “a second line for the Yamal pipeline,” in order to increase the transmission capacity to supply Russian gas to Poland, Slovakia and Hungary. A day later, the memorandum of understanding between Gazprom and EuRoPol Gaz was signed.

But Polish officials, including Deputy PM and Economy Minister Janusz Piechociƒski, as well as Treasury Minister Miko∏aj Budzanowski, said

nobody had briefed them on the issue.

Mr Tusk meanwhile looked confused when asked by the media for comment, saying, “I simply do not know [about a planned gas pipeline].”

But notes taken by Gra˝yna Piotrowska-Oliwa, president of PGNiG, that were released to the press suggest that Mr Piechociƒski did indeed know about the memorandum.

Embarrassing situation On April 3, Ms PiotrowskaOliwa wrote, “I informed the deputy prime minister of Gazprom’s proposal regarding Yamal 2 and our intention to sign a memorandum assessing the feasibility of a gas pipeline going through Belarus, Poland and in the direction of Slovakia.”

And so Mr Tusk has ordered an investigation into the matter. “The report is supposed to answer the question if a situation that was embarrassing for me personally, will really bring negative consequences. It should state if there were some bad intentions behind [the mix-up],” the prime minister said.

COURTESY OF THE EUROPEAN PARLIAMENT

International

Mr Tusk was surprised at news of the proposed gas pipeline Meanwhile, the Centre For Eastern Studies (OSW), a think-tank co-created by the current interior minister, Mr Sienkiewicz, has called Mr Putin’s proposal a “bluff.”

The think-tank concluded that the principal and immediate goal of the plan is to increase Russian pressure on Ukraine by making it easier for Russia to cut off the gas taps.

Moscow and Kiev are currently involved in some rather antagonistic negotiations regarding gas deliveries. The OSW predicts that after the “probable” takeover of Ukraine’s gas transit system by Gazprom, plans for a pipeline going through Poland will “cease to exist.”

Remi Adekoya

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BUSINESS

APRIL 15-21, 2013

www.wbj.pl

5

Alcohols

Aggressive moves into Russia left it with piles of debt, just as the global economic crisis hit and drinking habits began to change

million from the company’s debt. In turn, 100 percent of the company’s stock will be transferred to Roustam Tariko, who has been investing in the company since 2011.

About 99 percent of 2013 bondholders and 97 percent of 2016 bondholders have approved the plan, the company said.

The judge in charge of the bankruptcy proceedings has set the hearing for May 13, saying “this is a true pre-pack plan with overwhelming creditor support,” Bloomberg reported.

“This should be a quick, fully consensual pre-packed plan of reorganization,” said CEDC attorney Jay Goffman. The plan should be approved within 35 days to ensure that operations aren’t disrupted, he added.

Central European Distribution Corp (CEDC), one of the biggest producers and distributors of vodka in the region, filed for chapter 11 bankruptcy in a Delaware court at the beginning of April. The firm produces many popular brands, including ˚ubrówka, Bols and Parliament, and says it is the largest integrated spirits beverage business by volume in Central and Eastern Europe.

The company says the move applies to its US units, and that its subsidiaries in other countries (including Poland) will remain unaffected.

The firm has been on the brink of bankruptcy for months now, after it failed to repay millions of dollars worth of bonds.

Court filings showed that CEDC has liabilities of $1.73 billion. If the restructuring plan, which has the overwhelming support of the company’s creditors, is approved by the court, it will slash some $665

COURTESY OF CEDC

CEDC, regional vodka giant, files for bankruptcy

A worker in a CEDC-owned plant inserting bison grass into bottles of the famous ˚ubrówka vodka Market leader CEDC was founded in Poland by three American citizens in 1990 as a beer importer. In 1998 it debuted on the NASDAQ and in 2006 it entered Warsaw Stock Exchange, the first US company to do so.

In 2005, after a series of acquisitions, it became a vodka producer. With aggressive

expansion into other markets, and expensive acquisitions (in 2008, CEDC spent some $1.2 billion on Russian Alcohol Group, the largest vodka producer there), the company began experiencing financial difficulties.

All this happened at a time when both Russians and Poles began to drink less vodka.

M&A

PKO BP eyes potential takeovers PKO BP, the biggest bank in Poland, plans to continue its expansion and has a few potential targets in sight

But the list of lenders that could fall into PKO BP’s hands doesn’t end with Nordea. Mr Jagie∏∏o said that his bank doesn’t want to limit itself to the Polish market.

“We are thinking about the Czech market and in this context we are thinking about the possible sale of CSOB by KBC,” he said.

CSOB is the biggest bank in the Czech Republic. It has over three million customers and 253 outlets.

Moreover, PKO BP is still interested in buying Millennium Bank, the Polish arm of

Portuguese Millennium bcp.

PKO’s previous bid was rejected, but Mr Jagie∏∏o expects that the lenders will return to talks in the autumn.

The news of a potential takeover likely won’t please the Polish Financial Supervision Authority (KNF), whose chairman Andrzej Jakubiak said in an interview with Dziennik Gazeta Prawna that the level of consolidation in the Polish banking sector is currently at an optimal level. He added that the KNF would carefully examine any future takeover bids in the sector.

COURTESY OF NORDEA BANK

When daily newspaper Rzeczpospolita reported that Nordea Bank planned to withdraw from the Polish market, experts jumped to the conclusion that its Polish arm would be taken over by PKO BP. While both entities refused to comment on the matter, PKO BP CEO Zbigniew Jagie∏∏o said in an interview with TVN CNBC that the lender is “looking for a bank that has a well-developed affluent client base and a good presence in major cities.” He added, “There are a few such banks and Nordea is among them.”

Nordea Bank has 140 outlets and 720,000 customers.

When it comes to assets, it’s ranked 12th in the Polish market. According to analysts’ estimates, the transaction could be worth between z∏.2.8 billion and z∏.4.4 billion.

Tip of the iceberg

Nordea Bank has 140 outlets in Poland

Jacek Ciesnowski

Russian President Vladimir Putin introduced a series of laws intended to curb the country’s alcohol consumption, which resulted in a 17 percent decline in vodka consumption from 2008 to 2011. Poles, on the other hand, began developing a taste for other alcohols, spending less on vodka and more on beer, wine or whiskey.

Too much too fast As a result of these factors, the company reported a loss of $1.3 billion in 2011. “They did too many acquisitions at the same time,” Moody’s Investors Service analyst Paolo Leschiutta said in an interview with Bloomberg.

“There was increasing competition in Poland, which was

a distraction for the management because they focused more on Russia, and they didn’t realize that they were losing market share in Poland,” he added. The company, whose shares were worth over $75 apiece in 2008, saw its stock price plummet to $0.14 last week.

Jacek Ciesnowski

BUSINESS

www.wbj.pl

Pedal to the metal The competitiveness of car-making countries with respect to manufacturing costs (% of respondents that say the country is competitive or fairly competitive) 75.00 56.25 37.50 18.75

a

il

Ko re

Br az

uth

Tu rke y Ru ss ia

0.00

Source: Ernst & Young

break for investments, at the same time threatening the manufacturer with a 10 percent tariff on the VW Jetta model, a popular car in Turkey, if the company decides to go elsewhere.

A long road ahead Location works in Poland’s favor. It is an EU member and it already has a big and modern VW factory in Poznaƒ that is currently producing several different car models. And according to experts, even without tax breaks, Volkswagen’s investment in Poland could be economically feasible.

Poland ranked sixth in the world in terms of productioncost competitiveness in a recently published survey by Ernst & Young on how European car makers view different countries as potential investment destinations. As many as 56 percent of those surveyed said that they see Poland as a competitive market in terms of production costs. Still, some other CEE countries managed to outperform Poland. Hun-

SHUTTERSTOCK

Volkswagen is eying Poland as a possible production site for its new light commercial vehicle.

The news was revealed by Turkish Economy Minister Zafer Caglayan. Turkey is Poland’s main competitor in

securing the investment.

“Currently, they are trying to decide between Poland and Turkey. They remain undecided,” Mr Caglayan told daily newspaper Hurriyet and added that, “some groups in Europe are trying to block it, but it’s beyond dispute that we’re ahead of them. We expect the results in May.” Turkish officials are putting pressure on Volkswagen to invest in their country by promising them a 60 percent tax

So

British health care services group Bupa announced the completion of its takeover of Lux Med, Poland’s largest network of private hospitals and clinics, from private equity fund Mid Europa Partners.

The value of the deal was €400 million. Bupa, which operates mainly in the UK, Spain, Australia, New Zealand and the United States, competed with investment funds such as BC Partners and BridgePoint in the bid to take over Lux Med.●

Poland’s automotive industry might get a much-needed boost.

But it’s still a far cry from being a leader in the region

Ind i hR a ep ub lic Slo va kia Hu ng ar y Po lan d

Bupa completes Lux Med acquisition

Another car maker to manufacture in Poland?

Cz ec

Natural gas company PGNiG will carry out two drilling operations in Egypt this year. The first drilling has already started and the second one is to begin in May, Andrzej Maksym from the company’s gas deposits department told the Polish Press Agency. Mr Maksym said that PGNiG may spend roughly $12 million on exploration work in Egypt.

APRIL 15-21, 2013

Automotive

ina

PGNiG plans Egypt drilling in 2013

Ch

Volkswagen is thinking of producing a new light commercial vehicle in Poland gary (57 percent), Slovakia (61 percent) and the Czech Republic (62 percent) are all seen as better potential investment destinations where costs are concerned.

Investment attractiveness is not all about costs though.

Even though Poland is seen as having higher productivity (36 percent) than Hungary or Slovakia (31 and 32 percent respectively), it slides when it comes to innovation (20 percent) and production quality (26 percent). Still, Poland far

outpaced Turkey in every category in the survey.

If Volkswagen decided to start production of the new vehicle in Poland, it would be another piece of good news for the Polish automotive industry this year. In March, Gliwice, in Silesia voivodship, became the exclusive production site of Opel’s Cascade convertible, while Fiat is thinking about moving the production of its 500 model exclusively to another Silesian city, Tychy.

Jacek Ciesnowski

M&A

25 projects in the semi-final phase of the Zacznij.biz competition!

The second phase of the Zacznij.biz competition has been completed. The members of the Zacznij.biz jury selected 25 semi-finalists. zed d by

by PKPP PK K KPP PP Zacznij.biz – idea – business – success, is a business plan competition organized ed n of the Lewiatan and Lewiatan Business Angels. On December 1, 2012, the third edition he projects projecccts was Zacznij.biz competition was launched. The deadline for submitting the January 31, 2013. a to assistt en ent ttre epreThe purpose of the contests is to promote entrepreneurship, as well as entrepreus sin si tra investors – business tract bu ussiness u neurs in preparing plans for their business and to help them attract ot sufficien ufficient condition to receive rec funding – the ab bility to angels. A good idea is a necessaryy but no not sufficient ability tm tme ment (including (inccluding a financial financial commitment), com prro roperly execute, experience, commitment and a properly porrtance. business model are of key importance. s selecte ed 126 12 participants out of more than n 150 Lewiatan Business Angels representatives selected nvited nv to o take ta part in the Innovatorium I (Febr rruary, applications. Selected contestants were invited (February, p wass tto o deli d eliver ver the the knowledge of business an ngels n 14-15, 2013). The purpose of this workshop deliver angels a ark rketing rketi ting g aspects, aspects aspe c competitors competi etitor torss or o financial projecpro ojec o expectations regarding business models, marketing partic participants had time to improve their business busi sin tions and valuations. After Innovatorium I, participants mbers ers of the Zacznij.biz jury include: Szymon Szzym plans, which were then voted on by the jury. Mem Members ndrowicz ndrowicz, Aniela Hejnowska and Maciej Mac Kurzyca, Krzysztof Gawrysiak, Jacek Aleksandrowicz, he semi-final ssemi emi-final phase of the competition. com mp petiti Strzębicki. The jury chose 25 projects to take part in the 2013 2 20 013) 3) was to prepare the the participarti The purpose of Innovatorium II (which took place on April 4, 2013) all investors inve inv nvestors – business b busi usin nesss angels. n ange pants for the pitch, i.e. presentation of their ideas to the potential ront ont of Jury and a then the th The participants will pitch in the semi-finals on 24 and 25 April in front th t Final F l Gala on o most promising ideas will be then presented to the business angels att the May 23, 2013. ńska a-Kasprzak Members of Jury of Honour of the Zacznij.biz competition are: Bożena Lublińska-Kasprzak, arzz, President Presiden President of the Polish Agency for Enterprise Development; dr Henryka Bochniarz, ctor of the of the Confederation Lewiatan and Professor Krzysztof Jan Kurzydłowski, Director National Centre for Research and Development. www.zacznij.biz.pl

Warsaw Stock Exchange in talks with peer in Vienna Could the region’s two largest exchanges go from being rivals to partners?

The Warsaw Stock Exchange has held preliminary merger talks with Wiener Börse, the stock exchange in Vienna. The talks are at a very early stage and will not necessarily result in a deal.

The two exchanges will decide within a few months on whether to start advanced merger talks, Leszek Paw∏owicz, chairman of the WSE’s supervisory board, told Bloomberg.

Referring to a visit by Michael Buhl, CEO of the Vienna bourse’s parent company, CEE Stock Exchange Group, Mr Paw∏owicz said that “the talks are at an early stage and non-binding.”

“A merger plan hasn’t yet crystallized and it will be up to investment banks to consider various scenarios,” Mr Paw∏owicz said. He added that possible synergies would be considered. The WSE will also analyze whether the merger would benefit the Polish capital market and economy.

COURTESY OF THE WARSAW STOCK EXCHANGE, WIENER BÖRSE

6

The Warsaw and Vienna bourses might soon work together Beatrix Exinger, the spokesperson for Wiener Börse, said that the CEE group is interested in cooperating with the WSE, but declined to give any further comment.

When asked about a potential merger, Beata Jarosz, a board member at WSE, told the Financial Times “We are ready to cooperate with Vienna. We are open to consolidation. The challenge for us is to

choose the right model – a viable business for our shareholders.”

The Vienna exchange already holds majority stakes in the Prague, Budapest and Ljubljana stock exchanges.

Trading volume at the Vienna-led group amounted to €6 billion in January and February, compared with €8.9 billion in Warsaw.

Kamila Wajszczuk

FINANCE & ECONOMICS

APRIL 15-21, 2013

www.wbj.pl

Interest rates

On hold for now?

RPP leaves rates at record low

The National Bank of Poland's reference interest rate, April 2011-April 2013

Analysts don't expect any more cuts in the near future Poland’s Monetary Policy Council (RPP) did not surprise economists, for once, with its decision in April.

After a cut of 50 basis points in March that took the market off-guard, the RPP kept interest rates unchanged, as expected. The National Bank

of Poland’s reference rate remains at 3.25 percent.

All 25 economists surveyed by the Polish Press Agency had expected the RPP to keep the rates unchanged. Earlier statements made by RPP members had suggested that the rate-setters would switch to a wait-and-see mode after March.

It is unlikely that the RPP will make further cuts in inter-

est rates this year, Marcin Kiepas, an analyst from Admiral Markets, wrote in a comment. More cuts shouldn’t be expected, “especially as a decrease would be expected in the summer, after the newest inflation projection is published and we should observe a visible improvement in macroeconomic data at that time,” he wrote.

Piotr Bujak, chief econo-

mist in Nordea Bank Polska shared that view. “Our baseline is that the key policy rate in Poland will stay unchanged for a long time (well into 2014), but there is a risk that we will see further reduction in rates by 25-50 basis points, if domestic activity indicators in next months disappoint,” Mr Bujak wrote in a statement.

Poland’s Labor Ministry said that the registered unemployment rate was 14.3 percent in March, 0.1 percentage point less than in February. In March 2012, the unemployment rate was 13.4 percent, also 0.1 point lower than the previous month.

Labor Minister W∏adys∏aw Kosiniak-Kamysz stressed that the decrease was not a seasonal one, as Poland’s weather in March was not

favorable, but rather was the result of the ministry’s intervention in the labor market.

He said that the negative trend in unemployment has not begun to reverse yet.

“We may talk of a reversal of the trend at the beginning of the second half of the year,” he said. He added that he expected the unemployment rate to drop below 14 percent in April.

KW

Poland’s Ministry of Finance is considering a revision of its GDP forecast to 1.5 percent from the 2.2 percent currently set in Poland’s budget for the year, Deputy Finance Minister Wojciech Kowalczyk told the Polish Press Agency.

“That’s what the market consensus is shaping up to be and we are also inclined to this forecast,” he said.

Mr Kowalczyk said that the ministry expects an economic rebound in the second half of

5 4 3 2 1 0

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KW, JC

Unemployment Finance ministry may revise GDP estimated at 14.3% in March growth forecast

7

Source: National Bank of Poland

OECD still sees growth for Poland’s economy

the year. He added that the ministry is counting on an uptick in private consumption, caused by lower interest rates and a relaxation in lending regulations. “Inducing investments will be a more long-lasting process,” he added.

The minister also said that the Monetary Policy Council should make more interest rate cuts. “We hope that the rate-cutting cycle will continue,” he said.

KW

The Composite Leading Indicator (CLI) for Poland amounted to 100.46 points in February 2013, compared to 100.35 in January, the Organisation for Economic Co-operation and Development (OECD) announced. A continuing increase of the CLI above 100 points signals future economic expansion.

Compared to February 2012, the CLI for Poland was up by 0.24 points.

CLI is composed of a

variety of indicators, specifically selected for each country. Polish CLI takes into account the real effective exchange rate, WIBOR 3M interest rate, activity in the processing industry, the number of job offers and coal production dynamics.

The OECD aims to forecost turning points in business cycles six to nine months in advance with this indicator.

KW

8

INTERVIEW

www.wbj.pl

APRIL 15-21, 2013

International

Iraq’s ambassador to Poland, Dr Saad Jawad Kindeel, sits down with WBJ to talk about the situation in Iraq 10 years after the US and its allies’ intervention, the country’s political and economic relations with its neighbors and with Western countries, as well as Iraqi-Polish relations and his views on the future of his country.

Ewa Boniecka: You were active in the Iraqi opposition during Saddam Hussein’s rule, left Iraq as a young man and lived in exile in the United Kingdom, returning to your country after the collapse of the regime. How did the Iraqi opposition react to the American invasion?

Dr Saad Jawad Kindeel: Let me turn for a while to the prewar period. The Iraqi opposition had many parties and groups, most of them had been in exile during the dictatorship. After the uprising in 1991, we organized a conference in Beirut which for the first time brought together all the groups of the Iraqi opposition.

In 1992, at the second conference, held in Erbil, there was a call to organize the opposition in a more structured way, with the aim of pre-

senting our cause to international public opinion, to the US, France, the UK, Germany and Arab countries as a united group determined to topple the regime.

We believed that the Iraqi people can and must change the regime, but to achieve that goal we needed international support. We organized the Iraqi National Congress in exile and held meetings with high officials in the US, Britain and other countries.

Ten years later, at a conference in London, just before the war, something akin to a parliament was elected in exile, and I was also elected to it as well. We were prepared to run Iraq after the collapse of Hussein’s regime, because it was clear to us that it was coming to an end.

And you believed that you could bring down Saddam’s

regime by yourselves?

We did not believe in a military conflict, while I have to admit that different groups had different strategies. The main opposition group, the Islamic group, believed in creating an alliance between the people and the Iraqi army, in order to push Saddam from power. We wanted to avoid a war.

How did the opposition react to the American military intervention?

The opposition groups made it clear a few months before it took place that we were supporting the Americans in their aim of overthrowing Saddam.

However, our support was for this goal alone and we stressed that we were against bombing Iraqi territory, against air strikes and military operations in Iraq.

How do you look at the war 10 years after it ended, with Americans withdrawing from Iraq?

I think that this war was unnecessary, it could have been avoided by supporting the Iraqi opposition’s drive for overthrowing the regime, which was hated by the people

and totally isolated. We thought that with international political pressure and the opposition getting the right kind of help, we could achieve our goal and bring down Saddam Hussein, who was already losing support.

But the US administration decided to begin a full-scale military intervention and that war was mismanaged and did enormous collateral damage to our country. The Iraqi economy came to the complete standstill, the whole infrastructure was destroyed.

But to be fair, I have to say that the destruction was not only the result of the American military intervention, but also of two previous wars conducted by Saddam: one in 1991 with Kuwait and also in the [1980-1988] war with Iran.

And the same can be said for the casualties among the Iraqi people. They were also the result of these wars, as well as of the Saddam Hussein regime, which tortured and executed people, or burned them alive.

We have mass graves all over the country. There are no official figures about all the losses among the Iraqis, but our estimates show hundreds

COURTESY OF THE FOREIGN MINISTRY OF LATVIA/FLICKR

Iraq: the long road back

Ambassador Saad Jawad Kindeel believes his country can one day become an economic powerhouse of thousands of people being killed during Saddam’s reign alone.

The war ended, but we still hear about incidents and attacks by some terrorist groups killing civilians, like the one that happened recently in Baghdad. Is the country still under threat?

I would not describe the Iraqi environment as under threat – the peak of violence and terrorism was in 2006-2007. Now the number of incidents and casualties is about 15 percent of what was in those years. Up

to 2009 American troops were responsible for the country’s security and then gradually withdrew, leaving the task to Iraqi authorities.

From January 2012 the Iraqi government, as well as our military and police forces, have been fully in charge of maintaining security and we’ve managed to achieve significant improvement in providing a secure environment. There are still some incidents, but they happen everywhere – also in other countries – so I would not agree with presenting Iraq as a dangerous place, as it is

INTERVIEW

APRIL 15-21, 2013

often portrayed in foreign media.

Thirteen countries, including Poland, sent troops to Iraq.

What do you think of their performance now?

The troops brought together by the Americans had different tasks. The Americans and the British were most active in combat operations, they were engaged in war hostilities aimed at the overthrow of Saddam and his forces. When it was done, they called in troops from other countries, including Polish soldiers. Poles were responsible for securing order and peace in some areas, which was positive, because there was no administration or any security for our people.

Polish troops also protected important archeological sites, which otherwise would have been looted or destroyed.

So Iraqi people do not harbor any bad feelings towards Polish soldiers, even if sometimes incidents happened and people did the wrong thing.

And after the period of combat, we started cooperating with the Americans in maintaining peace and security in Iraq and our leadership began discussing with the Americans the transfer of power to us. My country still has a long way to go to achieve full stability, but we are doing it now on our own.

And how do you now see the development of Iraqi relations with the US, your neighbors and with Syria?

America is a very important partner to Iraq. We signed a strategic partnership and cooperation agreement with the US back in 2009. I consider it to be a great success of Iraq that we have finally replaced the American occupation with the establishment of close and positive relations, both political and economic, between us as two sovereign countries.

We are also trying to establish a new era in our relations with neighbors, based on peace and non-interference, as we’ve had enough of wars.

This is how we look at Iran, Syria and neighbors with whom we have had problems in the past. And at the same time we are developing relations with America, we also want to have good relations with Russia. We are trying to keep a balance between our relations with the West and the East.

Iraq has huge oil reserves, so as soon as the war ended, international companies began competing to gain access to exploit them. What is the situation now?

Our economy is 95 percent dependent on oil exports, but due to the destruction of infrastructure during the war, the collapse of industrial and agricultural sectors, our economy

is not in good shape. Our oil reserves are state-owned and the government is responsible for developing and running the oil sector. This is done by signing service contracts with international companies to recover the oil and export it.

Now the investment is just starting. There have been some investments by companies from South Korea, Japan, the UK, the US and China.

We are trying to interest some European countries to invest in Iraq and we signed a strategic cooperation treaty with the European Union three months ago. As far as trade goes, our number-one partner is Turkey, number two is Iran and number three is the United States.

Let’s talk about Iraqi-Polish relations now. You have stressed that Iraqi people had a positive attitude towards Polish soldiers and that our mutual political relations remain good, so what can Poland gain in economic terms?

During the 1970s, Poland had very good economic relations with Iraq. There were many Polish companies working on service contracts in Iraq and Poles were very active in the construction and agriculture sectors, while Polish architects and engineers were constructing buildings and roads in Baghdad. But the majority of economic cooperation between Iraq and Eastern European countries, among them with the Poles and Czechs, was in the field of selling weapons to Iraq.

Now Iraqi-Polish economic relations are non-existent, but I do not see any reason why they should not pick up again.

There are three ways of doing business with Iraq open to Poland. The first way and the main one is to bid on contracts advertised by the government.

Another way is to invest in our country, and since Iraq has a cooperation treaty signed with the European Union, of which Poland is a member, there wouldn’t be any obstacles.

And there is also another issue involved here. Iraq has a debt of about $900 million – nearly $1 billion – racked up by the import of Polish products during Saddam Hussein’s rule. Iraq signed an agreement with the Paris Club which states that 80 percent of that debt should be canceled, so only 20 percent of the debt to Poland should be paid back.

We suggest that this 20 percent be put in a fund to support Polish companies’ operations in Iraq. And the Polish side has accepted the idea, but every year Polish government postpones it to another year and nothing has been done.

Polish companies are not encouraged to work in Iraq as they are worried about the security in Iraq, but I wonder

why companies from other countries are not worried about it and send their representation to Iraq to look for economic opportunities.

Why do you think that is?

I believe that Polish companies need to be encouraged by the media to get involved in Iraq, and that the Polish government can play an important role in this. I have been lobbying the Polish government to send a delegation of your companies and some officials to visit Iraq and explore trade and investment possibilities there, but my efforts have not been successful yet.

Iraq and the Polish government are now working together to hold another session of the joint committee to discuss mutual economic cooperation, which is supposed to meet every year in either Warsaw or in Baghdad. The last meeting was scheduled for October last year in Baghdad, but the Polish delegation postponed it and prepared a draft agreement on economic cooperation to be signed before the meeting.

I’ve relayed it to my government, which is now looking into it, but it takes time, so we suggest that we move forward with the meeting in Baghdad. We are active in developing trade cooperation with Western countries – Germany, France, the United Kingdom, Italy and Spain, but we are also keen to revive economic relations with the countries of Eastern Europe.

We have signed a contract with the Czech Republic for weapons and we are very interested in signing a contract with Poland’s [defense firm] Bumar, but there are some problems to be solved first. Poland can win a contract worth $1 billion if these problems are solved. Saying all that, I still hope that our economic cooperation will be revived to our mutual benefit.

How do you see the future of Iraq?

Looking into the future I see Iraq as a huge economic power. It is not only that we are rich in oil, which is very important, but I see also the development of tourism in our country. Our potential in tourism can produce more resources than we gain from oil. What I have in mind is not only religious tourism, Muslim tourism, but also visits to our nature and historic and archeological sites.

We are open to all kinds of tourists and the pope is planning to visit Iraq, too. It was first suggested by John Paul II and the new pope is ready to discuss organizing such a visit. I see Iraq as a peaceful and secure country with bright prospects for economic and social development. ●

www.wbj.pl

9

10

MADE IN POLAND

www.wbj.pl

APRIL 15-21, 2013

Exports

Promote and innovate

The conference took place at the National Stadium’s plush Platinum Lounge

WBJ’s “Made in Poland” conference attracted experts and businesspeople to discuss the prospects for Polish exporters and the barriers holding back Polish innovation On April 10 Warsaw Business Journal held a conference marking the launch of the third edition of its annual Made in Poland publication, focused on Polish export promotion. The conference, entitled, “National brands on the global market: Tradition. Protection. Innovation.” hosted several presentations and three discussion panels focus-

ing on the competitiveness of Polish products abroad, both traditional ones and the most cutting-edge, as well as on state programs and legal measures supporting Polish export.

The conference was held in the Platinum Lounge of the National Stadium in Warsaw.

It gathered representatives from various industries inter-

ested in exporting their products as well as directors of national institutes, R&D centers and patent attorneys.

The event was officially kicked off by WBJ editor-inchief, Andrew Kureth, who, after welcoming the guests and audience, presented the publication and talked of its significance.

“We reach a global audience through our partners at chambers of commerce, embassies, commercial offices and, of course, over the internet, where our publication is

Piotr Marczuk from Microsoft easily accessible. That gives Made in Poland a wider reach than any other publication of its kind,” Mr Kureth said.

This year’s Made in Poland was published in three languages: English, Russian and Polish.

More money to SMEs Following the welcome speech, Micha∏ Polaƒski from the Polish Agency for Enterprise Development (PARP) discussed changes that are to be introduced in the agency’s flagship program “Passport for

exports” in order to provide more support for SMEs in their international endeavors.

According to Mr Polaƒski, director of the economic promotion department at PARP, the agency is planning on increasing financial support for SMEs this year to z∏.200,000-400,000 per project and covering up to 75 percent of a project’s costs. The range of undertakings supported by the program will also be expanded, Mr Polaƒski said.

PARP, a strategic partner of the Made in Poland project this year, is also responsible for organizing events promoting Polish companies abroad such as trade missions, fairs and exhibitions and is planning to hold as many as 30-40 trade missions this year.

Promoting vodka with history

Leaders of government agencies and hi-tech businesses talk innovation with WBJ ’s Remi Adekoya

The first discussion panel focused on Polish traditional foodstuffs and alcohol exports. Piotr Kondraciuk, director of the food promotion office at the Agriculture Market Agency, and Leszek Wiwa∏a, president of sector association the Polish Spirits Industry, debated on how the image of Polish traditional specialties could be improved abroad.

Both panelists agreed that Polish traditional export foodstuffs need support and promotion to reach international markets, particularly such as

India or China, which, though promising and offering huge market opportunities, can be extremely hard to penetrate, with import duties, such as those in India, that could reach as high as 400 percent.

Mr Wiwa∏a strongly advocated using Polish tradition, culture and history to promote Polish specialties, especially Polish vodka, abroad.

Mr Wiwa∏a compared Polish vodka to Scotch whisky and to French wine, pointing to Poles’ shortcomings in terms of an effective marketing strategy. “French people are ambassadors of their culture, national cuisine and economy,” he said, and added that Polish exporters should also use history and tradition to promote their traditional alcoholic beverages. “Poles invented vodka, even though we are still bickering about it with the Russians.”

Quality pays off Mr Kondraciuk said there are certain Polish specialties that Poles love, but will never be able to turn into international success: such as Polish “oscypek,” traditional Polish smoked cheese made from sheep’s milk. He believes, however, that Polish candy, cold cuts, blue cheeses and apples have the best export potential. He also stressed how vital quality is, even when selling something as unprocessed as fruit.

MADE IN POLAND

APRIL 15-21, 2013

www.wbj.pl

11

Lech Bury of Patpol, Alicja Adamczyk of the Polish Patent Office and Bartosz Krakowiak of Polservice discuss patent protection

The conference was packed

Both speakers agreed that Polish exporters must aim for high quality to increase sales abroad. “Packaging, stable quality and history that needs to be told,” was Mr Wiwa∏a’s recipe for the success of Polish vodka abroad.

Know your rights The second panel, which followed a presentation by Microsoft government relations officer Piotr Marczuk, on unfair global competition, concentrated on the legal protection Polish producers can count on when exporting their goods.

The panelists – the president of the Polish Patent Office and two patent attorneys – explained what types of legal instruments and proceOrganizer

dures Polish manufacturers can use to protect their innovations, trademarks and industrial design, and emphasized how important intellectual property protection is for business.

Experts agreed that Polish businesspeople still submit very few patent applications or rarely register their trademarks, and need to be educated on what kind of recourse they have when other producers infringe upon their rights.

They should also take precautions when selling their products abroad to minimize the risk of being taken to court by foreign companies.

Failure to communicate The third discussion comprised a panel of as many as Main Partner

A guide to Polish export

MADE IN POLAND 2013

six experts in the area of innovation: three representing government agencies and institutions and three from private companies in hi-tech industries such as IT and aviation. Even though the panelists agreed that Polish companies are in no short supply of innovativeness, they admitted that there is a lot of room for improvement.

Piotr Przewrocki, president of IT firm Fineus, blamed Poles’ low innovation rankings on poor, if not nonexistent, cooperation between business and science, which leads to inefficiencies in allocating resources. He explained that “business has no way of communicating with universities,” and thus very often the same projects are

carried out by R&D centers and university scientists separately, which incurs unnecessary costs.

Communication seems to be the biggest barrier for Polish businesspeople in the opinion of Leszek Grabarczyk, deputy director of the National Centre for Research and Development. He stressed the importance of developing a network of contacts all over the world, without which “you can send e-mails until the end of time” to no avail.

Innovative but anonymous Micha∏ Polaƒski from PARP emphasized that “the backbone of the Polish economy is made up of some 1,700,000 companies which were creat-

ALL PHOTOS BY ROXANA DAWID

The Polish Spirits Industry’s Leszek Wiwa∏a and Piotr Kondraciuk of ARR discuss traditional Polish food exports with WBJ ’s Jacek Ciesnowski

PARP’s Micha∏ Polaƒski ed by Poles from scratch,” but Poles have problems with branding their achievements and thus their contributions go unnoticed. “Out of some 15,000 BMW car parts, several hundred are manufactured in Poland,” Mr Polaƒski said.

According to Mr Przewrocki, the problem with Polish innovation is that brilliant and

well-educated Polish IT specialists prefer to work in international corporations rather that go it on their own. And the truth of the matter is that “a patent is always the property of the corporation paying for the research,” Witold WiÊniowski, director of the Institute of Aviation, pointed Beata Socha out.

WBJ WOULD LIKE TO THANK ITS PARTNERS:

12

COVER STORY

www.wbj.pl

APRIL 15-21, 2013

Exclusive interview

Transforming Poland’s justice system WBJ sat down with Justice Minister Jaros∏aw Gowin to discuss the deregulation reforms he plans to push this year, the changes he wants to introduce to Poland’s legal system, civil unions for homosexual couples, which Mr Gowin opposes, and whether homosexuals in Poland face discrimination

What exactly do you want to change in Poland’s Code of Criminal Procedure?

A bill I proposed, which has been in parliament for a few months now, will change Poland’s criminal procedure and transform it from an inquisitorial model, like what we have in continental Europe, to an adversarial system, such as the kind that Anglo-Saxons have.

Put simply, the difference between these two models is the role of the judge in a criminal case. In the inquisitorial model, the judge has a very big role in collecting, analyzing and interpreting evidence.

But the adversarial method

assumes that the judge simply assesses the credibility of evidence supplied by the differing parties. This would make cases move faster.

Do you think Poland’s justice system is ready for such a change?

Judges and prosecutors will definitely need time to adjust to the new realities. That’s why we are planning a year-long vacatio legis [the time between when changes become law and when they are actually implemented] so they can prepare adequately. It is also necessary to make prosecutors work more efficiently and I hope the new bill currently being prepared will help with that. The bill will clearly spell out the relationship between prosecutors and the government.

This is necessary because since we made prosecutors independent of political influences in 2010, we have noticed that there need to be some improvements to the system. I propose introducing parliamentary oversight of prosecutors. Right now, the yearly report of the Prosecutor General is known only to two people in the country: the prime minister and the justice minister.

Society has lost the capability to supervise its prosecutors.

I am also proposing changes to the division of work amongst

COURTESY OF THE CHANCELLERY OF THE PRIME MINISTER/FLICKR

Remi Adekoya: What are the Justice Ministry’s priorities for this year?

Jaros∏aw Gowin: The priorities I set for this year are aimed at ensuring Poles have easier access to the justice system and at shortening the period it takes for courts to make a ruling. A crucial element needed to achieve this goal is the adoption of a new Code of Criminal Procedure.

Deregulation is another priority of mine. I am counting on the parliament to pass all three deregulation bills this year.

These three bills, prepared by my ministry, will make access to almost 240 professions much easier.

“Poland’s bankruptcy laws today assume that a businessperson who loses financial liquidity is either a loser or a conman. I propose rejecting that philosophy.”

Mr Gowin believes businesses in financial trouble should first be given the chance to restructure before bankruptcy procedures are initiated prosecutors so they can adapt to the adversarial system.

Today, more than 90 percent of cases are being dealt with by regional prosecutors, the lowest level of prosecutors, who make up two-thirds of all prosecutors in Poland.

Meanwhile, a third of prosecutors at the highest level deal with maybe half a percent of all cases. They concentrate rather on administrative issues. This leads to inefficiency.

In March, the Constitutional Tribunal ruled that your reorganization of courts does not breach the constitution. But why are you so set on limiting the number of courts in Poland?

In previous years, the Constitutional Tribunal ruled that an element of judges’ independence is not being able to move them to another court without their agreement. This led to inefficiency and today judges in Warsaw and other big cities

sometimes have 10 times more cases than judges in small cities.

In such a structure, it’s no surprise that Poles have to wait years to resolve a case in court. Up till the end of 2012, 45 percent of judges either had no cases at all or very few cases. This was a Byzantine structure. Thanks to my reform, more judges will now be doing what they should be doing, actually judging cases.

But how do you explain to an ordinary Pole who feels that if courts in his small town are closed then it will be more difficult for him to access justice?

The fact of the matter is that no court has actually been closed. This was one of the insinuations – or even lies – spread by my opponents. All of the courts that functioned before January 1, 2013 are still functioning. The only difference is that the smallest courts, in an administrative sense I mean, are now treated as departments of bigger courts.

Thanks to that, judges who used to work in only one court and had much fewer cases than their peers now have to work in two or even three courts. So from the point of view of citizens, nothing has changed. The court building is still standing where it used to, judges still make rulings, all matters can still be settled in the same court house.

But the situation is changing from the point of view of judges. They have it more difficult now, they have more cases to handle. However, courts are not there to make judges comfortable but to serve citizens.

Today, hundreds of professions are strictly regulated in Poland. What is your plan to change this?

Two weeks ago, parliament held a second reading on the first tranche of deregulation I am proposing. It should be accepted by parliament in April and would increase access to more than 50 professions.

COVER STORY

APRIL 15-21, 2013

www.wbj.pl

COURTESY OF THE CHANCELLERY OF THE PRIME MINISTER/FLICKR

“Nobody can convince me that the grass is blue or that a relationship between two men is the same as that between a man and a woman.”

Mr Gowin is a strong opponent of civil unions for homosexual couples Such as?

Notaries, repossession agents, real estate brokers, tour guides or taxi drivers for example. We will soon send the second tranche to parliament. This would increase access to 89 professions in the construction and finance sectors. We are working hard on a third tranche that would affect 100 professions currently regulated.

Which of these professional groups is the most resistant to deregulation?

If I had to award a gold medal to the opponents of deregulation, then it would surely go to notaries. The silver would go to real estate brokers, while the bronze would go to tour guides. Each of these groups claims that increasing access to their professions would result in the 10 Plagues of Egypt coming over Poland.

In reality, wherever deregulation has been implemented, it has had four major consequences. First, it reduces unemployment. Jobs are created when it’s easier to access professions. Second, deregulation leads to a drop in prices of the deregulated service. When more people provide a service, it’s automatically cheaper.

Third, deregulation leads to an improvement in the services deregulated. It is not corporations and lobbies that guarantee quality, but open and honest competition. And this in turn leads to innovation. When you have to compete, new ideas and new services are created. So from my

point of view, there are only advantages to deregulation.

I know your party, Civic Platform, which is the senior coalition member, supports deregulation. But do you expect your junior coalition partner, the Polish People’s Party, to support the bill as well?

Their party’s representative in the deregulation commission proposed many amendments, the kind corporate lobbies would be happy with. These proposals were rather to limit deregulation. But I hope that since this is an official government bill, their MPs will support it when an actual up or down vote is called.

And I take it, in this particular case, you will readily accept the support of parties even vehemently opposed to Civic Platform?

I am really counting on the bill being supported by two radically different opposition parties, the conservative Law and Justice and the liberal Palikot’s Movement. Both parties have deregulation in their manifestos. And when it comes to Law and Justice, I must say that its MPs have proposed very sensible pro-deregulation amendments.

What changes would you like to apply to Poland’s bankruptcy laws?

I will talk about the philosophical shift we want to make because it’s too early for details now. Poland’s bankruptcy laws today assume that a busi-

nessperson who loses financial liquidity is either a loser or a conman. I propose rejecting that philosophy. Losing financial liquidity is a normal thing in a free market and businesspeople who face troubles should first be given a chance to restructure their business.

Only when that fails should we initiate bankruptcy proceedings. I may add that the changes we are implementing regarding deregulation, court proceedings and bankruptcy laws are very positively viewed by the World Bank. In 2012, Poland advanced in the annual Doing Business ranking, compared to the previous year. I hope we advance even further in the coming years.

Regarding the “Doing Business” ranking, what can the Justice Minister do to make Poland more business friendly?

This is my main concern. My slogan as Justice Minister is “justice for the economy.” My ministry will work on creating better conditions for businesses in Poland. The most important thing is to make the courts more efficient.

Businesspeople in Poland complain about three things: the construction law, the tax system – which is opaque – and courts. Right now, we are digitizing our court system on a wide scale. We have already reduced the number of procedures required to establish a firm.

So what could you do to simplify the tax code?

Unfortunately, in this case not

much, because the Finance Ministry is in charge of the tax code. But apart from being a minister, I am also a politician and an MP. I recently took part in a debate organized by President Bronis∏aw Komorowski who said the tax code is a serious barrier for SMEs in Poland. He said his chancellery will prepare proposals to change our tax code. I would very enthusiastically take part in such a process.

Indeed, you are also a politician. Changing lanes, why don’t I read you a quote and see whether you remember who made it. “Neither a Catholic nor a Pole, nor anyone else, should have more rights in the state than a human being.”

I would risk a guess that John Paul II said those words.

Actually, it was the late Father Józef Tischner, who I know used to be your spiritual and intellectual mentor. Do you not think that by refusing homosexuals the right to civil unions, you are saying in other words that Catholics should have more rights than homosexuals in the Polish state?

No, after all, there are many homosexual Catholics so one does not rule out the other.

But rights are one thing and privileges another. In Poland, homosexuals have the same rights as heterosexuals. The situation is different regarding homosexual relationships.

They don’t have the same rights here and in my opinion,

they shouldn’t have the rights available to married couples.

According to the Polish constitution, marriage is a union between a man and a woman. Marriage involves many privileges such as the possibility of filing joint tax returns. This results from the fact that marriage, in its essence, is focused on having and bringing up children.

And that is an important social mission because without children and the effort put into raising them, no society can survive. Since homosexuals are not fully-fledged families, they should not have such privileges.

You could also say the same to a 50-year-old heterosexual couple who want to get married. “It doesn’t make much sense for the society. After all, you know there will be no children from this union.”

That is true. But that argument is not the only one I have. There are more arguments. In my opinion, homosexual relationships go against the traditions of natural law. I am not speaking here of the laws of nature but of the philosophical tradition of natural law, which has its roots in stoicism, and has been continued

by Christianity and the enlightenment up until modern times. A natural union is one between a man and a woman, and not between two women or two men.

A third issue is the constitution. As Justice Minister, I am obliged to uphold the constitution and it clearly states that marriage is the union between a man and a woman.

Is it the case that you and those who think alike, are actually not against civil unions in of themselves, but simply fear that they would be a prelude to gay marriage?

And that is why you cannot accept them?

It depends how you understand civil unions. The civil union bills that were rejected by parliament in January aimed to create unions that would have amounted to a para-marriage. I don’t care what people do in their private lives. Once they are adults, they can live in informal relationships, threesomes or foursomes if they want. But I do think we should also apply some common sense.

Nobody can convince me that the grass is blue or that a relationship between two men is the same as that between a

13

man and a woman. I have also observed the “salami tactic” used by homosexual activists in the West.

First, civil unions, then marriage. When they have marriage, then they will want to adopt children. We have observed this in many European countries and we know that they are attempting to follow the same route here in Poland.

You are a conservative who does not insult or disparage his opponents publicly. But there are many other Polish conservatives who don’t argue in a civilized fashion but rather hurl insults at liberals, homosexuals or whomever else they don’t like. How do you get conservatives to present their point of view without insulting those they disagree with?

There is no other way than through persuasion, by pressing on supporters of conservative solutions as well as supporters of liberal solutions for a greater debate culture. Liberal circles have the same problems. You can enter any online forum where my stance on civil unions is being discussed and you will see an endless litany of vile attacks on me.

But that’s on forums, those are not words spoken by representatives of the liberal elite ...

Oh, I think I could easily find some examples such as words spoken about me by Professor Magdalena Âroda [a prominent sociologist and feminist] for instance.

Finally, what do you think about the fact that Lech Wa∏´sa has had lectures called off in the US due to his recent controversial comments on homosexuals?

I understood Lech Wa∏´sa’s words in two dimensions. On the one hand, there was the unfortunate joke about keeping homosexuals behind the walls of parliament, which evoked terrible associations. Former President Wa∏´sa has since stepped back from that.

But the second aspect of his statements, namely that homosexual activists are very aggressive, was a very sober and good diagnosis. Mr Wa∏´sa is now seeing that for himself, by the way. What is happening to him today is proof of the fact that what he said was right. ●

14

OPINION & ANALYSIS

www.wbj.pl

APRIL 15-21, 2013

George Soros

COURTESY OF THE WORLD ECONOMIC FORUM

Germany’s choice T

he euro crisis has already transformed the European Union from a voluntary association of equal states into a creditordebtor relationship from which there is no easy escape. The creditors stand to lose large sums should a member state exit the monetary union, yet debtors are subjected to policies that deepen their depression, aggravate their debt burden, and perpetuate their subordinate position. As a result, the crisis is now threatening to destroy the EU itself. That would be a tragedy of historic proportions, which only German leadership can prevent.

No panacea In accordance with the Fiscal Compact, member countries would be allowed to issue new euro bonds only to replace maturing ones; after five years, the debts outstanding would be gradually reduced to 60 percent of GDP. If a member country ran up additional debts, it could borrow only in its own name. Admittedly, the Fiscal Compact needs some modifications to ensure that the penalties for noncompliance are automatic, prompt, and not too severe to be credible. A tighter Fiscal Compact would practically eliminate the risk of default.

Thus, euro bonds would not ruin Germany’s credit rating. On the contrary, they would compare favorably with the bonds of the United States, the United Kingdom, and Japan.

To be sure, euro bonds are not a panacea. The boost derived from euro bonds may not be sufficient to ensure recovery; additional fiscal

Fatal flaw

and/or monetary stimulus may be needed. But having such a problem would be a luxury. More troubling, euro bonds would not eliminate divergences in competitiveness. Individual countries would still need to undertake structural reforms. The EU would also need a banking union to make credit available on equal terms in every country. (The Cyprus rescue made the need more acute by making the field even more uneven.)

But Germany’s acceptance of euro bonds would transform the atmosphere and facilitate the needed reforms.

Adamant opposition Unfortunately, Germany remains adamantly opposed to euro bonds.

Since Chancellor Angela Merkel vetoed the idea, it has not been given any consideration. The German public does not recognize that agreeing to euro bonds would be much less risky and costly than continuing to do only the minimum to preserve the euro.

Germany has the right to reject euro bonds. But it has no right to prevent the heavily indebted countries from escaping their misery by banding together and issuing them. If Germany is opposed to euro bonds, it should consider leaving the euro.

Surprisingly, euro bonds issued by a Germany-less euro zone would still compare favorably with those of the

US, UK, and Japanese bonds.

The reason is simple. Because all of the accumulated debt is denominated in euros, it makes all the difference which country leaves the euro. If Germany left, the euro would depreciate. The debtor countries would regain their competitiveness. Their debt would diminish in real terms and, if they issued euro bonds, the threat of default would disappear.

Their debt would suddenly become sustainable.

At the same time, most of the burden of adjustment would fall on the countries that left the euro. Their exports would become less competitive, and they would encounter heavy competition from the rump euro zone in their home markets. They would also incur losses on their claims and investments denominated in euros.

By contrast, if Italy left the euro zone, its euro-denominated debt burden would become unsustainable and would have to be restructured, plunging the global financial system into chaos. So, if anyone must leave, it should be Germany, not Italy.

Germany must choose There is a strong case for Germany to decide whether to accept euro bonds or leave the euro zone, but it is less obvious which of the two alternatives would be better for the country. Only the German electorate is qualified to decide.

If a referendum in Germany were held today, the supporters of a euro zone exit would win hands down. But more intensive consideration could change people’s minds.

They would discover that the cost to Germany of authorizing euro bonds has been greatly exaggerated, and the cost of leaving the euro understated.

The trouble is that Germany has not been forced to choose. It can continue to do no more than the minimum to preserve the euro. This is clearly Ms Merkel’s preferred choice, at least until after the next election.

Europe would be infinitely better off if Germany made a definitive choice between euro bonds and a euro zone exit, regardless of the outcome; indeed, Germany would be better off as well. The situation is deteriorating, and, in the longer term, it is bound to become unsustainable. A disorderly disintegration resulting in mutual recriminations and unsettled claims would leave Europe worse off than it was when it embarked on the bold experiment of unification. Surely that is not in Germany’s interest. ● George Soros is chairman of Soros Fund Management and of the Open Society Foundations.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

EURO ZONE EXIT

EURO BONDS

SHUTTERSTOCK

The causes of the crisis cannot be properly understood without recognizing the euro’s fatal flaw: By creating an independent central bank, member countries have become indebted in a currency that they do not control. At first, both the authorities and market participants treated all government bonds as if they were riskless, creating a perverse incentive for banks to load up on the weaker bonds. When the Greek crisis raised the specter of default, financial markets reacted with a vengeance, relegating all heavily indebted euro zone members to the status of a Third World country over-extended in a foreign currency. Subsequently, the heavily indebted member countries were treated as if they were solely responsible for their misfortunes, and the structural defect of the euro remained uncorrected.

Once this is understood, the solution practically suggests itself. It can be summed up in two words: euro bonds.

If countries that abide by the EU’s new Fiscal Compact were allowed to convert their entire stock of government debt into euro bonds, the positive impact would be little short of the miraculous. The danger of default would disappear, as would risk premiums. Banks’ balance sheets would receive an immediate boost, as

would the heavily indebted countries’ budgets.

Italy, for example, would save up to 4 percent of its GDP; its budget would move into surplus; and fiscal stimulus would replace austerity. As a result, its economy would grow, and its debt ratio would fall. Most of the seemingly intractable problems would vanish into thin air. It would be like waking from a nightmare.

George Soros

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Breathing space

On the right track

Developer Yareal Polska has delivered the first phase of Oxygen Park and launched construction on the second phase

Country CEO Stanislav Frnka tells Lokale why HB Reavis has taken on several projects involving railway stations

16

17

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t

Residential

Segero buys ˚eraƒ Park II

Sellers of apartments located in the most populous Polish cities have reduced their price demands significantly over the last year, according to data provided by real estate advertising service Szybko.pl. In Warsaw and Kraków, average offer prices per square meter were cut by z∏.500. In Wroc∏aw and Gdynia, the difference is z∏.600 and z∏.650 respectively. In Sopot, price demands declined by as much as z∏.1,000 per sqm. The decline was less noticeable in less popular cities and towns. ●

In this issue Residences selling . . . . . . . . . . .15 Warsaw Spire . . . . . . . . . . . . . . .15 Oxygen Park . . . . . . . . . . . . . . . .16 Robyg buys plot . . . . . . . . . . . . .16 Atrium to be demolished? . . . .16 HB Reavis interview . . . . . . . . .17

within the Saska, Derby, M∏yny Królewskie and Wilno projects. Another 27 units were sold in Wroc∏aw.

Robyg sold 303 apartments in the first quarter of 2013, including units located in Warsaw, where the French developer has six residential estates in the districts of ˚oliborz, Wilanów and Bemowo, as well as in Gdaƒsk, where it has three estates. The company expects to sell 1,000 units this year.

Polnord saw their sales increase each month this year.

Atal enjoys a surge in sales

Developers are selling plenty of apartments in under-construction developments

The first quarter of 2013 proved successful for residential developers Over 300 apartments were sold by each of Poland’s top two developers in Q1 2013:

Dom Development and Robyg. Other Warsaw Stock Exchange-listed developers Polnord and Ronson sold 200 and 132 housing units respectively. Atal Group, which is not WSE-listed, also did well, ranking among the five best-

Cieszyn-based developer Atal, which is preparing to debut on the WSE, secured a 72.5 percent sales increase in the first quarter of 2013. The developer sold 87 housing units in Kraków, where it is building its NadwiÊlaƒska 11, City Towers Czy˝yny, Nowy ˚abiniec, Lindego Park and

performing developers on the Polish market, with 207 apartments sold.

Dom Development, one of the two largest residential developers in Poland, sold 339 apartments this year. It said 312 units were sold in Warsaw,

Bronowice Residence III projects. It also sold 34 units in Wroc∏aw’s Agrestowa Aleja, Osiedle Mieszczaƒskie, Zielona Etiuda, Zielone Wojszyce and Ville Murano.

It sold 32 apartments in Nowe Polesie in ¸ódê and 31 apartments within its first Warsaw project, Atal Marina.

Located near ul.

Krzy˝ówki at the bank of the ˚eraƒski Canal in the Bia∏o∏´ka district of Warsaw, Atal Marina offers 178 apartments ranging from 31 to 54 sqm and 222 parking spaces.

According to the developers, despite the crisis and the conclusion of the “Family on its Own” subsidy program, Poles are still interested in buying new housing units.

The only thing that has changed is the increase in the number of cash transactions, as banks are less eager to grant mortgage loans.

Karolina Kowalska

Offices

Warsaw Spire construction ‘not in jeopardy’ Though the former owners have some rights to the land, Ghelamco vows that the construction of the tower will continue The construction of the 220meter Warsaw Spire, currently being built on the plot between ul. Towarowa, ul.

Grzybowska, ul. Wronia and ul. ¸ucka, will continue as planned, despite the Supreme Administrative Court’s ruling confirming that other persons have a claim to the land.

The investor behind the project, Ghelamco, has said that the investment will be carried out according to plan. In a press release the company stated that it legally acquired the right of perpetual usufruct

to the land in a tender.

“The company acquired the land in good faith and on the day of the acquisition there were no third-party claims disclosed in the land and mortgage register,” the company said, adding that, “the restitution claims of former owners will not affect the legal status of the property, to which Ghelamco holds perpetual usufruct. …

These restitution claims can be satisfied only by compensation from the State Treasury.”

Ten years ago, the land was the property of a state-owned printer Wojskowe Zak∏ady Graficzne. When the company was wound up, its assets were liquidated and Ghelamco (under the name Eastern Europe Bud Ltd at the time) bought the land in 2006 for z∏.85 million.

However, it turns out that before the war the land was owned by the Szymaƒski family and was taken from them after the war under the so-called Bierut Decree. The family tried to procure temporary ownership of the land, which was allowed under the Decree, but the authorities at the time rejected their claims. Two weeks ago the Supreme Administrative Court in Warsaw confirmed that the Szymaƒski family had a right to the land.

The building will consist of a 220-meter tower and two 55meter wings. It will offer up to 100,000 sqm of offices. The lower part of the building will be delivered in autumn 2014 and the tower will be ready a year later.

Marta Mardosz Karolina Kowalska

COURTESY OF GHELAMCO

Apartment prices fall in large cities

Apartments selling well in Q1 2013

SHUTTERSTOCK

Property manager Segro acquired ˚eran Park II in Warsaw for €43.2 million from AREA Property Partners and ApolloRida Poland. The acquired property comprises several warehouses used for urban distribution and a 49,900 sqm office building, about 10 kilometers from Warsaw city center. It is 85% leased and generates a revenue of about €3.3 million annually. Tenants at ˚eran Park II include Farutex, Leroy Merlin, Peak & Cloppenburg, Rothenberger, Schenck Process and UCB Pharma.

APRIL 15-21, 2013, LI 18/14

Warsaw Spire is scheduled for completion in 2015

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

16

LOKALE IMMOBILIA – REAL ESTATE

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APRIL 15-21, 2013

Office

Skyscraper to replace Atrium?

Atrium International Business Center could be demolished and replaced with a 55meter building and a 135-meter tower

of the current Atrium International Business Center. It is not yet known what the new building will look like, but the zoning plan allows for the construction of a 55meter building that will comprise a 135-meter tower. Polish media have reported that the owner of the existing structure, Rockspring, bought it in 2011 only to demolish it and build the new development.

Warsaw authorities have reworked the zoning plan for Al. Jana Paw∏a II, one of the city’s major thoroughfares.

The new plan allows for a high-rise scheme on the site

Rockspring’s officials have refused to confirm or deny the reports. They are also reluctant to admit they were the ones who applied to the city to change the zoning plan.

In a statement for Lokale they wrote, “We will continue to provide our tenants with well-managed, high quality space at competitive rental rates in this desirable, central location. … We support the

Residential

master plan, which will underpin the value of the Atrium’s location, thereby ensuring that our client’s future potential interests are protected in the event that taller, more modern buildings are developed elsewhere in the area.”

Completed in 1995, Atrium International Business Center is 25 meters tall and has seven storeys. It comprises 11,142 sqm of GLA, 1,938

sqm of retail space and a parking lot for 167 cars.

Located at the intersection of Al. Jana Paw∏a II and ul.

Grzybowska, it was one of the first modern, glass-layered buildings constructed in the second half of 1990s in Warsaw.

Today, some of the buildings that were modern at that time have been demolished, such as the Mercure hotel on the opposite side of Al. Jana

Paw∏a II. More will be torn down soon, including the Ilmet building at the intersection of Al. Jana Paw∏a II and ul. Prosta, at the Rondo ONZ roundabout.

Among the tenants of the Atrium building are Bank Zachodni WBK, Thomson Reuters, Restaurant 99, Geis Cargo International, Bank Pekao and Pramerica Financial.

Karolina Kowalska

Office

Robyg buys another First phase of Oxygen Park delivered plot in Wilanów

Robyg will deliver a total of 700 units within its Osiedle Królewskie estate before the end of June 2013.

“The purchase of the land in the vicinity of Osiedle Królewskie is great news for us,” Robyg CEO Zbigniew Wojciech Okoƒski said in a statement. “The agreement allows us to build another 90 apartments within the estate. … Our experience shows that Miasteczko Wilanów is still one of the most popular places to live, especially among young Warsaw citizens.

We are convinced that buying the land in this area has great potential.”

All of the plots that Robyg has bought near Al. Rzeczpospolitej total four hectares and are together valued at over z∏.30 million. Robyg is now involved in three projects in Wilanów – Nowa Rezydencja Królowej Marysieƒki, Osiedle Zdrowa and Osiedle Królewskie.

Karolina Kowalska

Yareal Polska recently delivered the first stage of its twobuilding office scheme located near the intersection of Al. Jerozolimskie and ul. Jutrzenki in Warsaw. The construction of the first phase began in July 2012 and has recently been granted an occupancy permit.

The developer has also launched construction of the second phase of the complex, which is due to be completed later this year. Together, the two six-floor structures will comprise approximately 18,300 sqm of GLA. Designed by the JEMS Architekci architectural studio, the Oxygen Park project will feature a number of green building solutions and is expected to obtain a BREEAM certificate of energy and environmental performance.

Each of the six floors of

Oxygen Park will offer approximately 1,500 sqm of leasable space and will be able to house up to four tenants.

An additional advantage of the scheme will be its low common-area ratio of about 3 percent, the firm says.

The first tenant in the scheme is Merck, which signed a pre-lease agreement while the construction was still ongoing. The company has already moved into the building and is currently completing the paperwork with the developer.

“I believe that Oxygen Park could not only become a

comfortable and attractive workplace but will also become a signature office building of this developing business part of the city,” said Katarzyna Oleksiƒska, head of the office project management department at Yareal Polska.

A subsidiary of Yareal International, Yareal Polska is present in the office and residential sectors of the Polish real estate market. The company’s residential projects include the Rezydencja Bia∏a and Ho˝a 55 housing schemes in the Polish capital.

Karolina Kowalska

COURTESY OF YAREAL POLSKA

Warsaw Stock Exchange-listed developer Robyg has purchased a 4,000-sqm plot in the capital’s Wilanów district for z∏.3.5 million. The plot is adjacent to the area the company bought in December 2012.

The latest purchase will allow Robyg to expand the Osiedle Królewskie estate that it is currently building on Al. Rzeczpospolitej by another 90 apartments, bringing the total number of housing units to nearly 700.

The developer has begun selling the first 110 apartments in the estate, 30 percent of which have already been contracted. Robyg has also secured financing for the investment by signing a letter of intent with NCRE Investment Limited.

With the deal, NCRE acquires a 49 percent stake in Osiedle Królewskie.

The project will be cofinanced with bank loans. The documents should be signed

Developer Yareal Polska has also launched construction on the second phase of the Warsaw office complex

COURTESY OF ROBYG

The new 4,000-sqm plot will allow it to expand Osiedle Królewskie by another 90 apartments

The two-building scheme will comprise some 18,300 sqm of GLA

APRIL 15-21, 2013

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

17

Interview

HB Reavis on track for railway redevelopment, office construction Lokale Immobilia sits down with Stanislav Frnka, country CEO of HB Reavis Poland, to talk about the company’s investments in close proximity to railway stations and the situation on the Polish office market

Was it hard to buy the plots in the vicinity of Warsaw Central railway station?

The Chmielna plot isn’t connected directly to the Warsaw Central and we didn’t buy it only with regards to its vicinity.

It is located in the heart of Warsaw and was the first plot that I noticed in Warsaw when I came here for the first time in 2007. It was a really ugly parking lot in one of the best locations imaginable and it needed to be developed. At that time there were still legal issues regarding the perpetual usufruct of this land and I was told not to touch the subject.

But when PKP announced the tender for it, we didn’t hesitate for a minute and went for it.

HB Reavis won a tender for the redevelopment of the Warsaw West railway station. This project was surely chosen for its proximity to the railway, wasn’t it?

That wasn’t the only factor.

The tender, which was announced in 2007, wasn’t only for the redevelopment of the station. It was supposed to be a deal comprising 48 hectares altogether, with the possibility of building something more on the other side of the tracks.

But then PKP changed its decision and narrowed this area to 1.7 ha, which is the plot where Warsaw West is located,

on the southern side of the tracks, next to Al. Jerozolimskie. The other side of the rail tracks is not the subject of the investment agreement. We are interested in extending the scope of our investment there, but it depends solely on PKP and how they proceed.

But the roads are changing rather slowly. Ul. Konstruktorska is still a mess. Are you planning on changing it?

We are going to reconstruct ul.

Konstruktorska together with Echo Investment and we are waiting for the building permit.

As the city said, it didn’t have a budget for it, so we decided to invest in it and redevelop it.

Is this why many developers are afraid of investing in plots belonging to state-owned companies?

Many developers are not capable of accepting and managing the level of risk involved in this kind of investment. State companies are regulated by more laws than private ones.

Our cooperation with PKP is very good. In both cases they were helpful and open to suggestions and a discussion. We are happy to cooperate with PKP, and we are open to future cooperation with them, as well.

What are you planning to develop on the Warsaw West railway station plot?

Warsaw West will consist of a 1,250-sqm railway station and office buildings with services on the ground floor, offering a total of 64,000 sqm of gross leasable area. The railway station should serve the public mainly for local trains.

The bus station, adjacent to Warsaw West from the side of Al. Prymasa Tysiàclecia, is the property of the bus company Polonus and has nothing to do with the railway station, contrary to what people might think.

PKP decided not to expand the station to such an extent as the stations in Poznaƒ or Katowice. You had bigger ambitions though, didn’t you?

When you look at the railway stations in Western Europe, they are completely different from what they were years ago.

Today they are mostly shopping malls connected with a railway station. PKP didn’t want to expand Warsaw West yet, as it was not meant to be the main station for Warsaw, as is the case for the Warsaw Central. It is rather considered a local train station, in which case you don’t need it to be expanded, since the commuters usually don’t spend three or four hours waiting for a train there. But if, in the future, PKP decides that Warsaw Central is too small to

Aren’t you worried about the oversupply in the office market?

We are not worried. When we look at Vienna, for example, there are 10 million sqm of offices there and the population of Austria is only 8.5 million. Poland, with its 40 million people, has a natural potential for expansion of its office market.

Of course it also depends on what direction the economy will take. A growing economy also means more offices in general. We are currently going through a rough period of stagnation but Poland is not in such bad shape as other countries and I think the office market here is undersupplied in the long-term perspective. We will still need new offices in Warsaw, in its downtown, as well as in Mokotów.

COURTESY OF HB REAVIS

Karolina Kowalska: HB Reavis seems to be particularly interested in the areas close to railway stations, as you are currently developing two such projects and planning a third one. Why is that?

Stanislav Frnka: We weren’t choosing plots in the vicinity of railway stations on purpose.

We were attracted mainly by the location and there is a general rule that in every country railway companies have plots in the city centers or close to the main arteries. Therefore they are really attractive from the developers’ point of view.

It is only natural that we look at the plots belonging to railway companies, not only in Poland but in the other countries where we are active. But at the same time such plots are hard to get. Somehow, their legal status is usually complicated and it is hard to get into a discussion with the railway companies about them.

S∏u˝ewiec Przemys∏owy, Post´pu 14. We believe this location is still attractive for tenants as it is a well-known office location in Warsaw. There is 1 million sqm of offices and if you want to go to a meeting and you have a partner close by, it is very convenient. Many tenants still want to have their headquarters there.

Stanislav Frnka handle all of its passengers, an expansion of Warsaw West would be a natural move. But these are just my thoughts about the future development of Warsaw.

of next year. Once we start, we usually finish the construction work within 20 months.

There is also another, third project of yours close to another railway station in

“Poland, with its 40 million people, has a natural potential for expansion of its office market.”

How is the work progressing on the site of Warsaw West?

We applied for the land development conditions and hope to get them in a few weeks. The next step will be applying for the building permit and we plan to start the construction of the first phase at the beginning

Warsaw. Will you tell us something about it?

We chose it not only due to its proximity to the railway station, but also its location near the Dworzec Gdaƒski subway station. We also saw that there is a lot of interest in this area but not many offices. We

decided to go for it, as it is an ideal place for an office project, with all the possible means of public transport: subway, trains, trams and buses in place and the Arkadia shopping center just 300 meters away.

You have recently completed Konstruktorska Business Center in Mokotów, your new headquarters. There are talks of oversupply in the office market in Warsaw. Was it easy to secure tenants for your project?

The 48,042 sqm Konstruktorska Business Center Warsaw had been attracting tenants long before its completion. The contracts are being signed, so we aren’t worried.

Furthermore, we are currently in the process of obtaining a building permit for another project of ours in

Are you profiting from the situation in Poland?

Generally, during a slowdown, everyone from the office sector active in the CEE region concentrates on Warsaw. Some 700,000 sqm is currently being built or planned to be built within the next two to three years. We are experiencing a crisis, and though Poland is in rather good condition compared to other countries, the increase of GDP is still below a healthy 4-5 percent so it is hard to expect a miracle.

In the short-term perspective the office market in Warsaw could be tough. It is a difficult market and even though leases accounted for 600,000 sqm last year, renegotiation took place in the majority of cases. Just 170,000 sqm of the new space was leased out. But I am optimistic about the future. ●

THE LIST

APRIL 15-21, 2013

www.wbj.pl

19

Exporters in Poland Ranked by revenue from exports in 2012

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Rank

A guide to Polish business and industry

Company name Address Tel./Fax E-mail Website

Revenue from (z∏. mln): 2012/ 2011/ 2010

Total revenue (z∏. mln): 2012/ 2011/ 2010

Export share in Net profit (z∏. mln): total revenue (%): 2012/ 2012/ 2011/ 2011/ 2010 2010

1

KGHM Polska Miedê SA ul. M. Sk∏odowskiej-Curie 48, 59-301 Lubin 76 748-0200/76 748-0500 komunikacja@kghm.pl www.kghm.pl

16,814.0 15,988.0 12,024.0

22,137.0 25,190.0 16,656.0

76.0 63.5 72.2

4,868.0 11,335.0 4,569

WND

WND

WND

WND

WND

2

Fiat Auto Poland SA ul. Gra˝yƒskiego 141, 43-300 Bielsko-Bia∏a 33 813-2443 czeslaw.swistak@fiat.com www.fiat.pl

12,643.0 15,035.2 14,814.5

14,172.6 16,594.7 16,520.8

89.2 90.6 89.7

106.8 83.9 -81.7

Production of passenger cars

Passenger cars (Fiat 500, Lancia Y, Ford Ka)

3,852 1992

Fiat Group Automobiles - 100% None

WND

3

Grupa Azoty ul. Kwiatkowskiego 8, 33-101 Tarnów 14 637-3737/14 633-0718 pr@grupaazoty.com www.grupaazoty.com

3,504.0 2,796.0 1,178.0

7,191.0 5,391.0 2,305.0

48.7 51.9 51.1

315.0 499.0 401.0

Chemicals

Nitrogen fertilizers; NPK fertilizers; NP fertilizers; construction materials and intermediates for the production of fertilizers; organic products

8,565 1927

WND

Jerzy Marciniak

4

Grupa Kapita∏owa GlaxoSmithKline Pharmaceuticals SA(1) ul. Grunwaldzka 189, 60-322 Poznaƒ 61 860-1200/61 867-5715 justyna.m.czarnoba@gsk.com www.gsk.com.pl

3,066.4 3,353.9 3,372.9

4,639.2 5,053.8 5,201.6

66.1 66.4 64.8

WND WND WND

Production of medicines and pharmaceutical products

Pharmaceuticals

1,508 1978

Glaxo Group None

Jerzy Toczyƒski

5

Ciech SA ul. Pu∏awska 182, 02-670 Warsaw 22 639-1000/22 639-1451 ciech@ciech.com www.ciech.com

2,851.0 2,627.0 2,276.0

4,378.0 4,175.0 3,960.0

65.1 62.9 57.5

-455.0 2.0 22.0

Chemicals

Soda ash; TDI; sulfur; resin; phosphorus compounds; plastics

292 1945

None Treasury - 37.9%; OFE PZU “Z∏ota Jesieƒ” - 6%; ING OFE - 7.6%

Dariusz Krawczyk

6

Tele-Fonika Kable Sp. z o.o., Sp.k.-a. ul. Wielicka 114, 30-663 Kraków 12 652-5000/12 652-5156 info@tfkable.pl www.tfkable.com

2,031.0 2,457.0 2,120.0

3,649.0 4,199.0 3,762.0

55.7 58.5 56.4

162.0 112.0 93.0

Cables; copper and aluminium wires; optical fiber

Cables; copper and aluminium wires; optical fiber

2,700 1992

None Bogus∏aw Cupia∏ - 100%

Barbara Lunberg

7

W´glokoks SA ul. Mickiewicza 29, 40-085 Katowice 32 258-2431/32 251-5453 info@weglokoks.com.pl www.weglokoks.com.pl

2,023.3 2,123.7 2,721.3

2,746.2 3,057.3 3,014.6

73.7 69.6 90.3

80.4 589.6 179.9

Coal trade

Coal

135 1951

None Ministry of Economy - 100%

Jerzy Podsiad∏o

8

Firma Oponiarska D´bica SA ul. 1 Maja 1, 39-200 D´bica 14 670-2831/14 670-0957 monika_gardula@goodyear.com www.debica.com.pl

1,897.0 1,762.0 1,357.0

2,133.0 2,322.0 1,793.0

88.9 75.9 75.7

95.0 91.0 82.0

Tires; automotive; chemicals

Tires

2,938 1,939

Goodyear - 76.4% OFE PZU “Z∏ota Jesieƒ” - 5.8%

Jacek Pryczek

9

Mondi Âwiecie SA ul. Bydgoska 1, 86-100 Âwiecie 52 332-1000/52 332-1922 info.swiecie@mondigroup.com www.mondigroup.pl

1,676.5 1,776.9 1,437.2

2,593.9 2,805.8 2,255.8

64.6 63.3 63.7

362.6 395.8 250.2

Paper industry

Paper bag and paper for cardboard production

1,100 1967

Framondi - 66%; Mondi International Holdings - 34% None

Maciej Kunda

10

Zak∏ady Azotowe w Tarnowie-MoÊcicach SA ul. Kwiatkowskiego 8, 33-101 Tarnów 14 637-3737/14 633-0718 pr@grupaazoty.com www.grupaazoty.com

1,228.0 1,292.0 1,013.0

2,167.0 1,949.0 1,571.0

56.7 66.3 64.5

251.0 208.0 61.0

Chemicals

Nitrogen fertilizers; construction materials and intermediates for the production of fertilizers

2,068 1927

WND

11

Ronal Polska Sp. z o.o. ul. Wroc∏awska 95, 58-306 Wa∏brzych 74 840-7010/74 840-7040 ronal@ronal.pl www.ronal.pl

909.4 964.5 742.0

984.2 1,060.7 845.3

92.4 90.9 87.8

65.8 69.5 34.2

Automotive

Alloy wheels

1,332 1996

Ronal - 100% None

12

KOPEX SA(2) ul. Grabowa 1, 40-172 Katowice 32 604-7000/32 604-7100 kopex@kopex.com.pl www.kopex.com.pl

765.4 679.1 698.5

2,022.2 1,983.5 2,134.2

37.9 34.2 32.7

54.7 147.7 23.7

Mining

Mining machinery and equipment

5,811 1962

WND Krzysztof J´drzejewski - 59.1%; ING OFE - 6.7%; Aviva OFE Aviva BZ WBK - 8.7%

13

Stalprodukt SA ul. Wygoda 69, 32-700 Bochnia 14 615-1000/14 615-1118 biuro@stalprodukt.pl www.stalprodukt.com.pl

754.0 841.0 764.0

1,657.0 1,799.0 1,560.0

45.5 46.4 49.3

68.0 122.0 145.0

Hardware trade

Electrical sheets; shapes cold formed; steel sheets; strips cold and hot rolled; road barriers

1,605 1991

WND ArcelorMittal Poland - 33.8%; STP Investment - 29.1%; Stalprodukt Profil - 9.4%

14

Faurecia Automotive Polska SA ul Spó∏dzielcza 4, 05-600 Grójec 48 665-0113/48 665-0303 fsc.grojec@faurecia.com www.faurecia.com

701.4 704.1 699.5

954.0 952.2 918.7

73.5 73.9 76.1

78.0 45.7 50.8

Automotive

Automotive interior components

WND 1996

Faurecia Investments - 100% None

15

Black Red White SA ul. Krzeszowska 63, 23-400 Bi∏goraj 84 685-0202/84 685-0290 brw@brw.com.pl www.brw.com.pl

671.0 754.0 568.0

1,612.0 1,750.0 1,786.0

41.6 44.8 31.8

WND WND WND

Timber industry and furniture

Furniture

7,883 1999

WND

16

FagorMastercook SA ul. ˚migrodzka 143, 51-130 Wroc∏aw 71 324-4555/71 324-4520 kontakt@fagormastercook.pl www.mastercook.pl

639.0 605.0 570.0

898.0 876.0 863.0

71.2 69.1 66.1

WND WND WND

Electronic home appliances

Electronic home appliances

1,335 1946

Fagor Electrodomésticos - 45%; Mondragon Inversiones - 30%; European Bank for Reconstruction and Development - 25% None

17

Exide Technologies SA ul. Gdyƒska 31/33, 61-016 Poznaƒ 61 878-6100/61 878-6430 marketing@exide.pl www.exide.pl

581.9 504.9 423.3

849.9 795.4 724.6

68.5 63.6 57.9

11.9 13.6 29.2

Electrochemical; automotive

Lead–acid batteries

481 1910

EXIDE Transportation Holding Europe 99.5% Employees - 0.5%

Janusz Mieloszyk

18

Faurecia Gorzów SA ul. Szczeciƒska 31, 66-400 Gorzów Wielkopolski 95 721-9300/95 721-9309 recepcja.gorzow@faurecia.pl www.faurecia.com

575.0 588.0 447.0

594.0 597.0 460.0

96.8 98.5 97.2

53.5 107.6 57.1

Automotive

Passenger cars components

1,275 2002

None Faurecia Automotive Polska - 100%

Krzysztof Muska∏a

19

Inter Groclin Auto SA ul. Jeziorna 3, Karpicko, 64-200 Wolsztyn 61 443-6100/61 443-6366 groclin@groclin.com.pl www.groclin.com.pl

95.0 100.0 84.0

174.0 181.0 142.0

54.6 55.6 59.2

4.0 3.0 2.0

Automotive

Car seat trims

955 1991

None Zbigniew Drzyma∏a - 26.8%; Maria Drzyma∏a - 26.8%

Zbigniew Drzyma∏a

20

Wytwórnia Sprz´tu Komunikacyjnego Poznaƒ Sp. z o.o. ul. Unii Lubelskiej 3, 61-249 Poznaƒ 61 878-3325/61 879-3301 export@wsk-poznan.com.pl www.wsk-poznan.com.pl

20.1 17.4 17.5

25.9 22.9 23.4

77.6 76.0 74.8

WND WND WND

Automotive; agriculture

Injection fuel pump for diesel engines

227 1918

None Agencja Rozwoju Przemys∏u - 100%

Tadeusz Paluch

21

Pakmar Sp. z .o.o ul. Zacisze 11, 08-410 Garwolin 25 682-0606/25 682-0600 pakmar@pakmar.com.pl www.pakmar.com.pl

1.7 1.9 2.2

18.7 20.3 20.1

9.0 9.2 11.2

WND WND WND

Packages

Food packaging films

41 1990

WND Marek Ros∏on - 28%; Jerzy Starak 37.6%; Monika Ros∏on - 17.2%

Marek Ros∏on

22

Alchemia SA ul. ¸ucka 7/9, 00-842 Warsaw 22 658-6452/22 658-6455 biuro@alchemiasa.pl www.alchemiasa.pl

0.6 0.6 0.4

1.2 1.2 0.7

50.9 55.2 55.1

0.3 0.2 0.01

Steel products

Seamless steel pipes; long steel; rings; hoops and other specific steel products

1,990 1990

None Roman Karkosik - 65.6%; Gra˝yna Karkosik - 9.4%; Unibax - 7%

Karina WÊciubiak-Hankó

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) Consolidated data of GlaxoSmithKline Pharmaceuticals SA, GSK Commercial Sp. z o.o. and GSK Services Sp. z o.o.; (2) Consolidated data of Kopex Capital Group.

Sectors in which company specializes

Exported goods

Total number of employees / Year founded in Poland

Ownership: Foreign / Polish

Top local executive / Title

President

President

Director

President

President

Jerzy Marciniak President

Krzysztof Brosig Director

Andrzej Jagiello President

Piotr Janeczek President

Krzysztof Muska∏a President

Tomasz Ostrowicki President

Ireneusz Bartnikowski

President

President

President

President

President

President

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

20

MARKETS

www.wbj.pl

APRIL 15-21, 2013

Stocks report

world stock indices DJIA

NASDAQ

14,865.14 (Apr 11 close)

S&P500

3,300.16 (Apr 11 close)

1.77% (for the week)

FTSE100

1,593.37 (Apr 11 close)

2.33% (for the week)

DAX

6,416.10 (Apr 11 close)

2.14% (for the week)

1.13% (for the week)

Stocks see mixed week

NIKKEI 7,871.63 (Apr 11 close)

13,549.16 (Apr 11 close)

0.69% (for the week)

7.24% (for the week)

CHANGE: 10.83% (year to Apr 11)

CHANGE: 6.04% (year to Apr 11)

CHANGE: 8.95% (year to Apr 11)

CHANGE: 6.45% (year to Apr 11)

CHANGE: 1.19% (year to Apr 11)

CHANGE: 26.77% (year to Apr 11)

52-week high: 14,887.51

52-week high: 3,306.68

52-week high: 1,597.35

52-week high: 6,533.99

52-week high: 8,074.47

52-week high: 13,549.16

52-week low: 12,035.09

52-week low: 2,726.68

52-week low: 1,266.74

52-week low: 5,229.76

52-week low: 5,914.43

52-week low: 8,238.96

Last week saw the Warsaw Stock Exchange rise in the middle of the week, only to be bookended by two days of losses.

Monday’s session saw WSE indices in the green for most of the day. However, enthusiasm waned towards the end of the day and the main-market WIG ended the session 0.01 percent down while the blue-chip WIG20 index was down 0.07 percent.

On Tuesday, the bulls had a slight advantage on most European bourses.

The CAC40, FTSE250 and IBEX35 all ended the day up. In the end, the WIG20 gained 0.1 percent on the day while the WIG rose 0.3 percent. Central European Distribution Corporation had a terrible day, after it was revealed it would enter bankruptcy proceedings,

Major indices WIG

45,688.48 (April 11 close)

WIG20

2,409.02 (April 11 close)

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

28.03

27.03

26.03

25.03

22.03

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

28.03

2,300

27.03

44,000

26.03

2,340

25.03

44,800

22.03

2,380

21.03

45,600

20.03

2,420

19.03

46,400

18.03

2,460

15.03

47,200

14.03

2,500

13.03

48,000

21.03

52-week low: 2,035.80

20.03

Change year to April 11: -8.27%

19.03

52-week low: 36,653.28

18.03

52-week high: 2,628.36

Change year to April 11: -5.03%

15.03

Change for the week: 2.83%

14.03

52-week high: 48,222.72

13.03

Change for the week: 2.39%

Top 5 REGNON EFH REINHOLD SELENAFM HAWE

Closing 0.02 0.55 0.35 12.77 3.12

% change (week) 52-week high 100.00 0.10 22.22 5.80 20.69 1.48 17.70 12.77 16.42 5.55

52-week low 0.01 0.40 0.24 5.12 2.62

Top 5 GTC BORYSZEW PZU PEKAO KGHM

Closing 8.00 0.46 419.50 161.50 166.90

% change (week) 7.38 6.98 5.46 4.53 4.31

52-week high 10.25 0.79 442.00 173.10 194.80

52-week low 5.13 0.41 272.07 123.29 92.14

Bottom 5 CEDC CELTIC TRAVELPL CALATRAVA SADOVAYA

Closing 0.31 3.20 3.63 0.05 1.13

% change (week) -67.71 -35.35 -32.15 -28.57 -28.48

52-week low 0.10 3.00 2.90 0.04 1.05

Bottom 5 SYNTHOS TPSA BOGDANKA JSW LOTOS

Closing 5.35 6.34 120.00 89.20 40.90

% change (week) -12.58 -3.50 -3.07 0.00 0.05

52-week high 6.00 17.34 143.00 101.00 45.45

52-week low 4.29 6.23 114.00 81.86 22.66

52-week high 16.55 14.18 7.96 0.53 6.40

Currency report

RPP stays on hold

Other indices sWIG80

10,908.65 (April 11 close)

WIG-Banki

6,458.09 (April 11 close)

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

28.03

27.03

26.03

25.03

22.03

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

28.03

27.03

26.03

6,200

25.03

31.0

22.03

6,280 21.03

31.4

20.03

6,360

19.03

31.8

18.03

6,440

15.03

6,520

32.2

14.03

32.6

13.03

6,600

21.03

52-week low: 5,163.30

20.03

Change year to April 11: -3.94%

19.03

52-week low: 31.71

18.03

52-week high: 6,723.16

Change year to April 11: -3.88%

15.03

Change for the week: 2.41%

14.03

52-week high: 41.90

13.03

Change for the week: -1.15%

33.0

Adam Narczewski X-Trade Brokers DM SA

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

28.03

27.03

52-week low: 8,984.43

26.03

21.03

20.03

11.04

10.04

09.04

08.04

05.04

31.93 (April 11 close)

52-week high: 11,245.80

SOURCE: WSE

NewConnect

04.04

03.04

02.04

28.03

10,800

27.03

2,400

26.03

10,900 25.03

2,480

22.03

11,000

21.03

2,560

20.03

11,100

19.03

2,640

18.03

11,200

15.03

2,720

14.03

11,300

13.03

2,800

19.03

Change year to April 11: 3.58%

18.03

52-week low: 2,147.52

15.03

Change year to April 11: 2.13%

14.03

Change for the week: 0.85%

13.03

52-week high: 2,718.31

25.03

2,623.22 (April 11 close)

22.03

mWIG40 Change for the week: 1.10%

with its share price plunging 27.9 percent.

Wednesday’s session was a good one for the WSE. The WIG20 ended the session up by 1 percent while the WIG gained 0.82 percent on the day. KGHM’s share price grew by 3.5 percent while Pekao’s rose 1.9 percent and PKN Orlen’s 2.1 percent.

On Thursday, unexpected good news from the US labor market helped European indices. By the end of the session, the WIG had gained 1.32 percent while the WIG rose 1.62 percent.

However, Friday’s session saw stocks hit hard. Weak macroeconomic data from the euro zone and the US dampened investors’ spirits.

The WIG was down 0.36 percent at the end of the day while the WIG20 slumped 0.5 Remi Adekoya percent.

The direction of currencies last week was mostly determined by decisions made by central banks the previous week, as well as the disappointing US non-farm payrolls report. The EUR/USD continued its upward move, reaching $1.3138, its highest level since the end of February. A further upward move was denied and the main currency pair gave up some of the gains to finish the week in the region of $1.3050. If the EUR/USD manages to break the high mentioned above, we can expect levels way above $1.32 in the upcoming week.

As for the local market, Poland’s Monetary Policy Council (RPP) kept interest rates unchanged at 3.25 percent on Wednesday. The market was expecting that

decision, since the RPP hinted in March it would stay on hold with interest rates.

Much more interesting were comments at a press conference following the decision by National Bank of Poland president and chairman of the RPP, Marek Belka. He said the central bank would be watching inflation closely in the upcoming months.

The reaction of the z∏oty was rather modest. The largest movements happened during the first part of the week. The EUR/PLN tumbled from z∏.4.16 all the way to z∏.4.09, to recover to z∏.4.10 by the end of the week.

The USD/PLN showed less volatility, declining from z∏.3.20 to z∏.3.15 throughout the course of the week. ●

currency rates 3.1821 12.04

3.1502 11.04

SOURCE: NBP

3.1600

3.2033 09.04

10.04

3.2243

3.3613 05.04

0.1017

0.1018 12.04

3.0

08.04

PLN-100JPY

3.5

11.04

0.1015 10.04

0.1016 09.04

08.04

0.1024 05.04

3.3691

3.3833 12.04

0.101

0.1014

PLN-RUB

0.103

11.04

3.3727 10.04

3.3863 09.04

08.04

3.4389 05.04

4.8230

4.8453 12.04

3.0

3.4137

PLN-CHF

3.5

11.04

4.8117 10.04

4.8517 09.04

08.04

4.9264 05.04

3.1382

3.1537 12.04

4

4.8849

PLN-GBP

5

11.04

3.1405 10.04

3.1696 09.04

08.04

3.2358 05.04

4.1061

4.1200 12.04

3.1

3.1893

PLN-USD

3.3

11.04

4.1135 10.04

09.04

08.04

4.1495

4.1820 05.04

4.1

4.1298

PLN-EUR

4.2

SPORTS

APRIL 15-21, 2013

www.wbj.pl

American football

Lewandowski scores in unbelievable win

National Stadium to host SuperFina∏ VIII

Dortmund scored two injury-time goals to beat Malaga

The season-ending game will take place on July 14 in Warsaw

But as the clock moved past the 90-minute mark, unbelievable scenes unfolded in Germany, as first Marco Reus slotted home form eight yards, then just over 60 seconds later Augusto Felipe Santan sent the home fans wild as he managed to stab the ball over the line after a goalmouth scramble.

Borussia will now face Real Madrid in the Champions League semifinal. Both sides squared off in the group stage of this year’s competition. Borussia won their home game 2-0 and drew in Madrid 2-2. The first game of the semifinal will be held on either April 23 or 24 in Dortmund.

David Ingham

COURTESY OF BVB.DE/FACEBOOK

Poland’s Robert Lewandowski continued his impressive goalscoring form this season as he found the net in Borussia Dortmund’s 3-2 victory over Malaga in last week’s Champions League quarterfinal. After a goalless first leg, Malaga’s Joaquin opened the scoring in the 25th minute with a low 20-yarder, a goal which meant that Dortmund needed to score two due to the away-goals rule.

Luckily for Borussia, they have the Budesliga’s top scorer in their ranks, and Mr Lewan-

dowski made no mistake when put through on goal in the 40th minute, rounding Malaga goalkeeper Willy Caballero before firing into an empty net.

Despite consistent Dortmund pressure in the second half, it was Malaga who looked to have won it when Brazilian substitute Eliseu beat the offside trap and placed the ball under the Dortmund goalkeeper Roman Weidenfeller at the 82-minute mark. The goal silenced the vast majority of 80,000 fans inside the Westerfallen Stadium, with the home supporters realizing they once again needed two more goals to make it through to the next stage.

Borussia Dortmund players celebrate their big win

Poland’s version of the Super Bowl will once again be played at the National Stadium in Warsaw this summer. The venue, arguably the most stateof-the-art stadium in Poland, boasts a capacity of just over 58,000. Last year’s match saw the Warsaw Eagles take on the Gdynia Seahawks, a game that ended 52-37 in favor of the team from Tri-city.

Speaking about the announcement of the venue for this year’s event, J´drzej St´szewski, president of the PLFA said, “SuperFina∏ VII ... was a milestone for American football in Poland. Thanks to this event, we gained publicity not only in Europe but also overseas.”

“We believe that this year’s SuperFina∏ will bring fans even more unique emotions,” he added.

In the most recent Topliga games it was bad news again for the capital’s other team, the Warsaw Spartans, who went down 28-0 to Zag∏´bie Steelers Interpromex. The win gave Zag∏´bie a measure of revenge

KAROL KOZLOWSKI/SHUTTERSTOCK.COM

Soccer

21

The National Stadium in Warsaw for their 17-0 loss to Warsaw in last year’s PLFA I (second-tier division) semifinals. The Spartans were shut out for the second consecutive game at home, dropping their record to 0-2.

“We made one mistake after another today,” said Spartans head coach Roman Picheta.

“Our receivers dropped a lot of good passes. It looks like we still have a lot to learn about playing in the Topliga.”

Elsewhere a strong crowd in Gdynia welcomed Poland’s champions for their first home game of the season, and they were rewarded with a 35-6 Seahawks victory over the visiting AZS Silesia Rebels. The game was the first of the season for the Rebels, who did not play during the first weekend of the campaign due to a postponement, while the Seahawks improved to 2-0 to begin the season.

Alex Zarganis

22

LIFESTYLE

www.wbj.pl

APRIL 15-21, 2013

Festival

COURTESY OF PUNKJEWS.COM COURTESY OF THEDEEPDARKWOODS.COM

Cultural awareness

The Deep Dark Woods

Concert

Punk Jews International Film Festival – Jewish Motifs April 23-28 Kino Muranów Warsaw The ninth edition of the Jewish Motifs festival takes place in Kino Muranów this month. The location for the event is symbolic as the Muranów neighborhood, where the cinema is located, was at the heart of the capital’s Jewish district prior to World War II and also part of the Jewish ghetto during the war years.

As one of more than 30 Jewish film festivals around the world it aims to increase awareness of and interest in Jewish culture through the medium of film.

As the organizers say on their website, “We want to awaken the audience’s interest in topics related to Jewish identity and experience.

Throughout history, the preservation of Jewish culture and tradition as a source of Judeo-Christian civilization has been achieved through the art of cinema. We want films on Jewish culture to reach the

young audience who are confronted with the complex problems of our times, such as terrorism, intolerance and hatred.”

Among the many films selected for this year’s event are “Punk Jews” a film about Hasidic punk rockers and street performers directed by Jesse Zook Mann, and “How to Re-Establish a Vodka Empire” about one man’s search for his Polish-Ukrainian heritage.

David Ingham

For more information log on to jewishmotifs.org.pl

Canadian country The Deep Dark Woods April 23 Hydrozagadka ul. 11 Listopada 22 Warsaw Canadian alternative country band The Deep Dark Woods come to the Polish capital this month as part of their current European tour. The band consists of singer and guitarist Ryan Boldt, bass guitarist Chris Mason, organist and pianist Geoff Hilhorst and drummer Lucas Goetz.

Boldt’s voice is reminiscent of Kings of Leon frontman Caleb Followill’s distinct southern American singing and works perfectly over the acoustic music of his band mates.

Their most recent release, the band’s fourth studio album, is entitled “The Place I left Behind” and contains the same stripped-down folk style music as its predecessors. The band members themselves say they are trying to achieve an “unflinching pursuit of steadiness between decadence and

minimalism” which is “guided at every turn by an intuitive ability to balance grit, clarity, drive and restraint with a sure focus on experimentation.”

Their dedication to songwriting has paid off in their native Canada, where they have won numerous awards after developing a loyal following of fans since their debut release back in 2006.

David Ingham

For more information log on to hydrozagadka.waw.pl

LAST WORD

APRIL 15-21, 2013

www.wbj.pl

23

Tech Eye

Cameras to capture sublime beauty

and Xena: Warrior Princess clap excitedly in the background. Add a horde of anthropomorphic jelly beans worshipping a double rainbow off to one side, and cap the whole scene off with the Eiffel Tower.

Picture that in your mind.

Sublime, isn’t it?

Techeye has been trying to capture that image for years. We’ve spent a fortune staging it with actors and elaborate props. It’s not easy – indeed, it’s quite challenging to convince pregnant women to dress like ninjas and stand in front of a charging bird. And something always goes wrong.

210g, which will undoubtedly please the weak-limbed. And there’s a popup flash, too.

Techeye has always loved pop-up flashes. They’re sparkly, exciting and much nicer than pop-up flashers.

Anyway, expect to pay $500 for the NEX-3N. Next is Canon’s PowerShot SX280 HS, a camera that’s not as technically impressive as the NEX-3N but one that creates a much less suspicious bulge in your pocket. Convenient for pop-up flashers, that.

The PowerShot SX280 HS has a 12MP sensor, a 7.5cm screen and 40x zoom capability (20x with extra wide-angle). It shoots 1080p HD films at 60 frames-per second (as does the NEX-3N, by the way). And its fast shutter speed has won praise from critics and customers alike.

There aren’t any major standouts among the features, but the PowerShot SX280 HS offers an abundance of little qualities that add up to a solid camera for its size class. Price: $330.

Blackmagic Design’s Pocket Cine-

ma Camera is the third camera Techeye plans to use to document our revolutionary vision. Chief among this just-announced device’s merits are its super 16mm-sized 1080HD sensor

CinemaDNG RAW and Apple ProRes formats. Coolest of all is the ability to mount a variety of professional lenses on the Pocket Cinema Camera via a “micro four thirds” lens

COURTESY OF BLACKMAGIC DESIGN

The NEX-3N

Then, last year, everything finally went right. There were neither too many nor too few anthropomorphic jelly beans. The light was amazing.

None of the philosophers tried to seduce the ostrich. Everything was perfect ... except our camera. It broke.

This year we’re taking no chances.

We’re going to purchase not one, not two, but three of the newest cameras on the market.

Our first choice is the NEX3N, which Sony calls “the world’s smallest, lightest interchangeable-lens camera with a large APS-C sized sensor*.” The asterisk leads to a dull caveat which renders the camera much less superlative, but it remains a respectable bit of kit that The PowerShot SX280 HS packs a 16.1MP sensor designed for extra noise reduction, a 7.5cm LCD screen that tilts 180 degrees and boasts 16-50mm powerzoom capability. It weighs a paltry

COURTESY OF CANON

COURTESY OF SONY

Imagine a plump man dressed like Donkey Kong riding an ostrich at full speed towards a group of pregnant ninjas, while Plato, Socrates, Aristotle

The Pocket Cinema Camera and its “super wide 13 stops of dynamic range.”

To be honest, our understanding of “stops of dynamic range” is limited, but they sound super. And wide. Also, according to Blackmagic, they lend photos taken by the Pocket Cinema Camera a strongly cinematic feel.

Anyway, the device also has a built-in SD card recorder and ensures high-quality lossless recording in

adapter. This means you can use giant, mega, humungous lenses that require heavy machinery or trained ostriches to move.

The Pocket Cinema Camera costs $995, bringing the cost of all three cameras needed for our majestic undertaking to a not-insignificant $1,825. On the other hand, how much would yet another failure cost? We shudder to think. ●

Ever worshipped a double rainbow? Let us know: techeye.wbj@gmail.com

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

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

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

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

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

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

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

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

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

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