WBJ #22 2011

The economy expanded by 4.4% in Q1, mainly on the back of domestic demand

Polish troops have been cleared of all charges in the Nangar Khel case

With its economy in dire straits, Belarus is asking for billions from the IMF 3

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WWW.WBJ.PL

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VOLUME 17, NUMBER 22 • JUNE 6-12, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

COURTESY OF WIKIMEDIA COMMONS

Lokale Immobilia

Since 1994 . Poland’s only business weekly in English

Left behind

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

Major Warehouse Developments in Poland 21

SHUTTERSTOCK

• National Stadium worries • JLL-King Sturge • Business Garden cornerstone 16-19

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-5 Industry News . . . . . . . . . . . . . . . . .6 Business Environment . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . . .12-14 Markets . . . . . . . . . . . . . . . . . . . . . .15 Lokale Immobilia . . . . . . . . . . .16-19 Business Community . . . . . . . . . .20 The List . . . . . . . . . . . . . . . . . . . . . .21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Poland's political left seems to have lost its way. Is it heading in the right direction to get back into government?

PLUS: Former PM Józef Oleksy tells WBJ, “The left does not have any alternative ideas” 14

12-14

‘Nein’ to nuclear

Aiding and abetting?

Donald Tusk thinks Polish coal exporters stand to gain from Germany's decision.

3, 10 Is he right?

Former Prime Minister Leszek Miller may be charged with helping the CIA to establish 4 “black sites” in Poland

A GUIDE TO POLISH EXPORT is AVAILABLE NOW! To order: Please contact us at +48 22 639 85 68 or kwilinski@valkea.com

NEWS

www.wbj.pl

z∏.2.86 billion is how much the Treasury has earned from privatization so far in 2011

50,000 Polish students will be without financial assistance come October, following Poland’s decision to eliminate some scholarships at Poland’s post-secondary institutions

Quote of the Week

Prime Minister Donald Tusk was asked by a female journalist if everything was organisationally “buttoned up” for Poland’s presidency of the Council of the European Union, which starts July 1.

Figures in focus Polish debt in perspective Government debt as a percentage of GDP in Q4 2010, selected countries 150

120

90

60

30

%

Gareth Price

On WBJ.pl

Source: Eurostat

Company index AB Foods ......................................2 Jastrz´bska Spó∏ka W´glowa......6 ProLogis Park B∏onie ................21 Al Farrow....................................23 Jones Lang LaSalle ..................16 ProLogis Park Chorzów ............21

Unhealthy habit Six months after Poland passed its smoking ban, Poles are still among the biggest smokers in the EU. The country’s own health minister has had trouble quitting. WBJ.pl asks what can be done so that Poles finally kick the habit in larger numbers.

Polish soldier dies in Afghanistan Corporal Jaros∏aw Maçkowiak was killed and two soldiers wounded last Thursday following a rebel ambush near the Polish base in Giro, in Afghanistan’s Ghazni province. This was Corporal Maçkowiak’s second tour of duty in Afghanistan. His death brings the number of Polish troops killed since Poland joined the NATOled operation to 27. ●

zation announced that 12 countries had so far notified it of E. coli cases.

“All these cases except two are in people who reside in or had recently visited northern Germany,” the organization wrote.

The source of the outbreak remained a mystery as WBJ went to press, but health officials have advised people against eating raw lettuce, tomatoes and cucumbers.

Russia, meanwhile, banned all fruit and vegetable imports from the EU. When the outbreak started, authorities in the German city of Hamburg claimed the source of the bacteria was cucumbers exported from Spain – an announcement which enraged the Spanish government and was later proven to be false.

ou rg Bu lga ria Est on ia

around 1,700 people had been infected with the bacteria and 18 people (17 in Germany and one in Sweden) had died, making this E. coli outbreak the deadliest in modern history.

Its virulence has been attributed to the fact that it is caused by a new form of the bacterium.

The World Health Organization announced the variant had “never been seen in an outbreak situation before.”

Meanwhile, the UK’s Health Protection Agency said in a statement that it could be a new variant of the rare strain O104. The organization says the strain could have acquired the ability to infect people in large numbers. The bacteria can lead to a lethal complication known as haemolytic-uraemic syndrome (HUS), which affects the blood and kidneys.

The World Health Organi-

UK

The mass outbreak of Escherichia coli bacterial infections which has afflicted Europe recently may have hit Poland at the end of last week.

As WBJ went to press, two Poles had been diagnosed with symptoms which could have been caused by the E. coli bacterium.

A 29-year-old woman who lives in Germany was the first Pole to report symptoms associated with E. coli poisoning.

Health Minister Ewa Kopacz told reporters last Thursday that a possible second case had been admitted to the same hospital – in Szczecin, located in Poland’s northwest, near the German border. The man in question lives in Poland and was diagnosed with diarrhea. As WBJ went to press he was being tested for E. coli bacteria.

As of the end of last Friday,

“I’m looking at the lady’s dress and buttoning up is not what comes to mind … I like summer”

Lux em b

The Council of Ministers has approved a bill to amend the law on safety of mass events, which will cover security at the Euro 2012 soccer championship. The regulation provides for electronic surveillance for convicted hooligans, as well as on-site trials.

21% of Poles between the ages of 25 and 64 have some type of higher education; the EU average is 30%

nd

Poland oks Euro 2012 security measures

11.3% is the unemployment rate that economists predict for the end of the year, compared to government predictions of about 10.9 %

Po la

UK tea producer Twinings will not receive a previously agreed-upon €12 million from EU structural funds to move production from its plant in northern England to Swarz´dz, in western Poland. Twinings’ owner AB Foods plans to open the new €30 million site in Poland later this year and cut a total of 360 jobs in the UK. The EC has said that the firm failed to prove the move was for regeneration rather than relocation. The EC does not provide funds for relocation.

The E. coli crisis

Ita ly Por tug al Be lgiu m Ire lan d Hu ng ary Ge rm an y EU -27

Twinings won’t get EU funds

Numbers in the News

ece

As expected, the American president’s visit to Warsaw on May 27-28 gave a boost to Polish-US relations. Among the few concretes that came out of the visit, Mr Obama officially gave his support to legislation which would change the criteria for admission to the US Visa Waiver Program (which Poland currently fails to meet). Regarding defense, Mr Obama also confirmed that progress was being made towards the establishment of a US Air Force Aviation Detachment of US F-16 or C-130 aircraft in Poland, beginning in 2013.

IN THE SPOTLIGHT

Gre

Obama in Poland

JUNE 6-12, 2011

COURTESY OF WIKIMEDIA COMMONS

2

Alpine ........................................16 KGHM ..........................................6 ProLogis Park Dàbrowa ............21 Anti ............................................15 King Sturge ................................16 ProLogis Park Poznaƒ II............21 AP Szczepaniak..........................17 Kuehne + Nagel ........................21 Apax..............................................6 Lotos ..........................................15

ProLogis Park Teresin ..............21 ProLogis Park Wroc∏aw ............21

Asseco Poland............................15 Mennica Polska..........................15 ProLogis Park Wroc∏aw III ........21 Asus............................................23 Mewa ..........................................15 Axi Immo ....................................19 Miller, Canfield, W. Babicki, Bain Capital..................................6 A. Chelchowski & Partners ......13 Bank Zachodni WBK....................7 Mispol ........................................15

Pronox Technology ....................15 PZU ............................................15 Rank Progress ..........................16

Best ............................................15 MLP Pruszków I ........................21 RTV EURO AGD ..........................17 Blue Microphones......................23 MLP Pruszków II........................21 Skalski Logistic Park ................21

DATELINE DR IRENA ERIS LADIES’ GOLF CUP

Event:

The fourth international golf tournament of Dr Irena Eris Ladies’ Golf Cup. Location: Naterki, Poland. www.drirenaerisgolf.pl

14-17 ITM POLSKA Event:

Trade fair of modern industrial technologies.

Location: Poznaƒ, Poland. www.technologie.mtp.pl

Carrefour....................................17 NFI Midas ..................................15 Telenor..........................................6 CEZ ............................................15 Nomi ..........................................17 TeliaSonera ..................................6

June 9

Budrem ......................................19 Neinver Group ............................18 SwedeCenter..............................18

CFE Polska ................................17 Panattoni Park Mys∏owice ........21 Tulipan Park Gliwice ..................21 Citigroup Global Markets ............7 Panattoni Park Poznaƒ I............21

17 Event:

ANNUAL OUTSOURCING FORUM & ABSL CONFERENCE

Continental Opony Polska ..........5 Panattoni Park ¸ódê East..........21

The Annual Outsourcing Forum & ABSL Conference will examine the position of Poland on the global map of business services.

Location: Westin Hotel, Warsaw. www.roadshowpolska.pl

Deichmann ................................17 Petrolinvest ................................15

Cyfrowy Polsat ..........................15 PBG ............................................15

Tulipan Park Poznaƒ..................21 Tulipan Park Stryków ................21 TVN ............................................15 Twinings ......................................2

Echo Investment ........................17 PGE ............................................12 Europoils Park B∏onie ..............21 PKN Orlen ....................................6 GfK Polonia ................................12 PKO Bank Polski..........................6 Hochtief Polska..........................18 PKP ............................................18

UniCredit ......................................6 Vantage Development ................17 Vousoka ......................................17

Hydrobudowa ............................16 Pointpark Mszczonów................21 Warsaw Stock Exchange ..........17 Impel ..........................................17 Pointpark Poznaƒ ......................21 Wistil ..........................................15 Inter IKEA ..................................18 Polimex-Mostostal ....................15 W´glokoks ....................................6 Internet Group............................15 Polkomtel ....................................6 X-Trade brokers ..........................7

NEWS

JUNE 6-12, 2011

www.wbj.pl

3

Energy

Germany’s nuclear shutdown: What will it mean for Poland?

Prime Minister Tusk thinks it will benefit the country’s coal industry, but experts aren’t so sure

SHUTTERSTOCK

Germany aims to shut down all of its nuclear plants by 2022 are not very popular in Germany and the country is quite proud that it managed to shut down most of its coal industry during the second half of the 20th century.”

The country is also under pressure from the European Union to meet green emissions targets.

Germany, which produced nearly 23 percent of its electrical energy from nuclear power

Gap in the market Sources of electricity production in Germany, 2010 4.5% Coal

13.6%

Nuclear

42.4% 16.9%

Renewable energy Natural gas Other

22.6%

Source: Germany's BDEW energy association

in Germany,” the Polish prime minister said. “And despite Nord Stream, there won’t be enough gas to build enough [gas-fired] power plants to replace nuclear ones.”

Experts also say Germany will, for geopolitical reasons, be loath to rely too heavily on Russian gas supplies. Poland, too, would not favor a situation

in 2010, now wants to slash its electricity use by 10 percent and increase its reliance on renewable energy sources from 17 percent last year to 35 percent by 2020.

Relying on Russia In the meantime, however, experts say the country will have to rely more heavily on natural gas sourced from Russia. German Economy Minister Philipp Roesler visited the country to discuss energy issues with officials the day after his country’s decision on nuclear energy. The Nord Stream underwater pipeline, which is due to begin pumping gas from Russia to Germany later this year, will now take on even greater significance.

Mr Tusk was not, however, convinced Germany’s transition plan would work out as it hoped.

“With all due respect, windmills will not replace the nuclear power plants that exist

in which its powerful Western neighbor was so dependent on Russian energy. Germany is now scrambling to diversify its fuel sources, but a number of experts have suggested that it is more likely to rely on nuclear power from neighboring countries such as France and the Czech Republic, than to drastically increase coal imports.

Berlin made the decision to close its nuclear plants following a wave of popular antinuclear sentiment which followed the Fukushima nuclear crisis in Japan. Switzerland’s cabinet, meanwhile, has recently recommended that the country’s five nuclear reactors be shut down, while Italy has abandoned plans to relaunch nuclear power production.

Nevertheless, despite signs of strong anti-nuclear feeling at the domestic level across Europe, experts say it is unlikely to translate into an EU policy plank.

“France is all about nuclear,” said Mr Nierada.

“Knowing the French lobby, I don’t see a huge movement away from nuclear at the EU level.”

Mr Tusk last week reiterated his support for the building of Poland’s first nuclear reactor.

“For many reasons, we believe nuclear power is a good alternative,” the PM said.

Prime Minister Tusk views Chancellor Merkel’s decision as good news for Poland

The Nangar Khel incident

The seven Polish soldiers accused of carrying out a 2007 massacre in an Afghan village were acquitted by a military court in Warsaw last Wednesday. The court justified its decision by saying there was a “lack of sufficient evidence” which would prove the soldiers were guilty.

“Doubts which cannot be removed can’t be interpreted to the detriment of the accused,” said Judge Miros∏aw Jaroszewski while reading aloud the justification for the decision.

Polish military vehicles

reportedly came under attack in the morning of August 16, 2007. Later that day, Polish soldiers from the 18th Airborne-Assault Battalion allegedly spotted insurgents in the same area, who fired at them. The Polish troops then reportedly returned fire, shooting at and mortaring the village of Nangar Khel in the process.

The attack, on what later proved to be a wedding party, resulted in the almost immediate deaths of six civilians, according to a US incident report posted on Wikileaks.

One man, four women and a baby died in the attack. Three other women were injured.

Prosecutors said the attack was premeditated, although not targeted at civilians, and they demanded prison sentences of between five and 12 years for the men. Last Wednesday’s decision can still be appealed.

Throughout the case, Defense Minister Bogdan Klich has stood by the accused soldiers, saying that they had performed a “fatal error” and should be found not guilty.

The trial, which began in 2009, is the first case in history in which Polish soldiers have been accused of breaking the Hague Convention and killing innocent civilians.

Remi Adekoya

COURTESY OF US ARMY PHOTO BY PVT. 1ST CLASS RICHARD W. JONES JR.RELEASED

Polish soldiers found not guilty There was “insufficient evidence” to convict the men

Gareth Price

COURTESY OF THE CHANCELLERY OF THE PRIME MINISTER

German Chancellor Angela Merkel’s decision to decommission her country’s 17 nuclear power plants by 2022 is good news for Poland’s coal mining sector, according to Prime Minister Donald Tusk.

“From Poland’s point of view, this is a good thing, not a bad one,” Mr Tusk told a press conference last week. “It means coal-based power will be back on the agenda.”

Poland produces the vast majority of its electrical energy from coal and hosts a large coal-mining industry, based mainly in Silesia.

Pawe∏ Nierada, an energy expert at the Sobieski Institute, a think tank, is less certain than Mr Tusk about how much of a boost Germany’s decision will provide for Poland’s coal miners.

“I would not overestimate the impact this will have on Polish coal exporters,” he said.

“Coal-fired power plants

Nuclear Europe

Polish troops reportedly returned fire during the Nangar Khel incident

4

NEWS

www.wbj.pl

JUNE 6-12, 2011

CIA interrogations

EU presidency

Polish officials may face charges over secret CIA prisons

Poland adopts final EU presidency priorities amidst global uncertainty

Questions regarding the prisons’ legality could now spell trouble for members of the former SLD government

GAWUC/REPORTER

Polish state prosecutors are considering charging members of the Democratic Left Alliance (SLD) for their alleged involvement in secret CIA prisons that may have been located on Polish soil. The prisons, often referred to as “black sites,” were allegedly locations where “enhanced interrogation techniques” were used on suspected terrorists from 2002-2005.

Officials from the leftist SLD government, including former Prime Minister Leszek Miller, may be charged with violating Poland’s constitution, helping to illegally imprison people and participating in crimes against humanity.

This is according to documents released by daily Gazeta Wyborcza, which show that former deputy prosecutor Jerzy Mierzewski wanted to press charges against former members of government who were in power between 2001 and 2005. Mr Mierzewski was

The program includes three main elements: economy, security and an “open” Europe

Mr Miller says discussing “black sites” is dangerous recently removed from the investigation and it is unknown if the charges he intended to bring will still stand.

The documents include a list of questions which prosecutors asked legal experts regarding the sites. The experts determined that there is no legal framework that would enable a foreign intelligence center to be located in Poland and not fall under the country’s jurisdiction.

In addition, they said the operation of such a center would be a breach of the Polish Constitution and that if prisoners were held in such prisons they could

qualify as victims of both war crimes and crimes against humanity.

In an interview with radio station TOK FM, Mr Miller called journalists investigating the allegations “useful idiots,” a term previously used by Lenin to describe Soviet sympathizers in Western countries.

Mr Miller claimed that openly discussing such prisons in the media endangered the country, saying, “Next year we will organize Euro 2012 and this is a great opportunity for alQaeda to remember about Thomas Kolasa Poland.”

One month ahead of its presidency of the EU Council on July 1, Poland has unveiled its final program. The five-page document outlines an ambitious agenda, but is also notably vaguer than its previous versions.

Bart∏omiej Nowak, executive director of Warsaw’s Center for International Relations, said Polish officials will openly admit that the situation in the EU is so unpredictable that it would be unwise to commit to specifics and later have to step back.

One telling example is the increasingly likely restructuring of Greece’s debt and the potential risk of a sovereign default in Spain, the EU’s fifth-largest economy. These would be dealt with primarily by euro zone members and would therefore all but ensure the top item on Poland’s agenda, economic policy, wouldn’t

gain any traction.

But barring financial catastrophe, Poland wants to start work on the next multi-annual EU budget, push to maintain the current, generous Cohesion Policy and work towards completing the Single Market Act. Security, the second element on the Polish agenda, has been notably downsized com-

tion of Croatia’s accession talks, as well as further progress in free-trade area negotiations with Ukraine.

At the same time, in North Africa, “Poland caught the moment, and is now trying to promote its own model of change. This is a very good step. Poland is not focused simply on the Eastern dimen-

“Poland caught the moment, and is now trying to promote its own model of change” pared to previous versions, and is “definitely not the priority today,” says Mr Nowak.

The third priority, “Europe benefiting from openness,” looks to strike a balance between bolstering ties with the EU’s eastern neighbors and devoting attention to the Arab Spring movements in North Africa.

Warsaw will host a highprofile Eastern Partnership Summit in September and hopes to witness the finaliza-

sion,” said Mr Nowak.

Conspicuous in its absence however, is any reference to climate change. Poland will be partly responsible for the December UN conference on climate change in Durban, South Africa. The country, which tends to view strict limits on CO2 emissions as a threat to its economy, might find it difficult to be an “honest broker” according to Mr Nowak.

Alice Trudelle

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NEWS

JUNE 6-12, 2011

www.wbj.pl

Market used to manage debt

International

Belarusian economy in crisis Last week, the Belarusian government requested a $3.58 billion loan from the International Monetary Fund (IMF). In the days leading up to the request, the country’s central bank had raised its key interest rate by two percentage points to 16 percent, the Belarusian rubble was devalued by 36 percent and prices were frozen on several food staples.

In order to rescue their savings, Belarusian citizens tried to stock up on increasingly rare non-perishable goods and foreign currency.

“In the present conditions, Belarus stands no chance of getting this loan from the IMF,” commented Kamil K∏ysiƒski, an expert at Warsaw’s Centre for Eastern Stud-

GENNADY SEMYONOV/EAST NEWS

Mounting economic difficulties have prompted the authoritarian regime to seek a loan from the IMF

Economic difficulties mean Mr Lukashenko will have to make concessions ies. “It is a desperate step.”

Belarus did not fulfill its 2009 loan agreement with the IMF and has completely ignored the organization’s advice on economic policy. The political situation is also a factor, explained Mr K∏ysiƒski.

“As long as there are still political prisoners in Belarus I think the US and the Eropean Union will be against this loan.”

Analysts at Citigroup Global Markets said they believed that the IMF might consider

Minority rights

Belarusian demands, but that the macroeconomic measures required may be “too costly for the Belarusian government to sustain.”

As WBJ went to press, it was not clear if Belarus would reach an agreement concerning a $3

billion emergency loan from the Eurasian Economic Community (EurAsEC), an organization comprising Russia and five postSoviet republics.

The Kremlin has said the loan would be conditional on the sale of state-owned companies worth a total of $7.5 billion, something Belarusian authorities are loath to agree to.

Time is running out and the options are few for a country whose president has alienated the West by cracking down on the opposition.

For Mr K∏ysiƒski, economic collapse by the end of the year is a possible scenario, as are major uprisings from Belarusian citizens.

“It is a very uncomfortable and dangerous situation for the Belarusian authorities. My forecast is that without any concessions towards Russia or the West, president Alexander Lukashenko will not be able to keep power,” he said. “It is only a question of time.”

Alice Trudelle

Military exercises

Senate moves to ban foster Russia and NATO to hold joint air exercise parent rights for gays The training will take The legislation looks unlikely to be passed however, while support for same-sex marriage rights is growing Poland’s Senate has passed an amendment to ban samesex couples from becoming foster parents, in a blow to rights for sexual minorities.

This is the first time that sexual orientation has been cited directly as a means of excluding people from enjoying certain rights in Poland.

According to Adam Bodnar, member of the board at the Helsinki Foundation for Human Rights in Warsaw, the new amendment would not pass the test of constitutionality and would be extremely difficult to enforce. Members of the ruling Civic Platform (PO) party have already indicated that this provision, which was not put forward by the governing party but direct-

ly introduced by senators, will be challenged when it is put to a vote in the Sejm.

On the other hand, PO has so far refused to throw its support behind a law recently proposed by the Democratic Left Alliance (SLD), which would regulate same-sex partnerships. The proposal would give same-sex couples the rights to inheritance and common accounting for tax purposes, as well as the right to seek information about their partner’s health from hospitals.

Marshal of the Sejm and PO member Grzegorz Schetyna has openly said that this law stands no chance of being passed, especially before this fall’s election. It is nevertheless cause for optimism, according to the Helsinki Foundation for Human Rights’ Adam Bodnar.

“I remember the days when any discussion concerning same-sex partnership laws was reserved to NGOs or the

LGBT community, and now one of the mainstream political parties is presenting this bill. In my opinion this is a breakthrough achievement in Polish politics,” Mr Bodnar said.

Poles seem to be increasingly in favor of giving samesex couples the right to form civil partnerships with the same economic rights as married couples. Between 2003 and 2010, that proportion increased from 34 to 45 percent of the population, figures from the Public Opinion Research Center (CBOS) indicate.

In 2010 an overwhelming majority of surveyed Poles remained against giving same-sex couples the right to marry (78 percent) and to adopt children (89 percent).

In a recent survey conducted by TNS OBOP for Gazeta Wyborcza, 54 percent of respondents were in favor of SLD’s proposal.

Alice Trudelle

place over Poland Russian and NATO fighter jets will appear in Polish skies this week as part of the first-ever joint air exercise to be held between the two former Cold War adversaries. The four-day exercise, called “Vigilant Skies 2011,” is set to begin on June 6.

The exercise is designed to train air forces so they are able to counter rogue planes, such as the two which were flown into the World Trade Center on September 11, 2001.

Plans for the exercise involve two Polish F-16s intercepting a “renegade” airplane after it breaks contact with ground control following takeoff from Kraków. The mission will then be handed over to two Russian Sukhoi jets, which will guide the rogue plane to Malbork, in northern Poland.

The next day, over the Black Sea, three Turkish F-16s and two Russian Sukhois will intercept a plane that has deviated from its flight plan

5

and lost communication with air traffic control.

The exercise will test the NATO-Russia Council Cooperative Airspace Initiative, which is designed to increase the sharing of information on movements which take place in both NATO and Russian airspace.

In a statement, NATO said the mission would “improve air safety for the thousands of passengers using international flights between NATO airspace and Russian airspace each day, and the millions of inhabitants on the ground.”

“In situations when an aircraft starts behaving erratically, the air traffic coordination system offers increased information sharing and communication to ensure rapid, joint responses to terrorist threats,” the alliance added.

The operation will have two main coordination centers in Warsaw and Moscow, with local coordination sites located elsewhere in Russia, and in Turkey and Norway.

David Ingham

Poland’s Finance Ministry revealed that Poland sold €1.25 billion at the end of last year to help finance borrowing needs. That the transaction took place was reported in the media at the end of last year, although the government hasn’t admitted it until now. The ministry added that it also conducted interestrate swaps (which are designed to protect against fluctuations in borrowing costs) with a nominal value of z∏.14 billion. Poland also entered into foreignexchange swaps worth €4.3 billion. The measures helped keep public debt below 55 percent of GDP. Had that level been breached, the government would have been forced to initiate tough austerity measures.

Winter tire shortages possible A huge increase in car sales around the world may soon prove detrimental to drivers.

Tire producers are already warning that by the end of this year they may not be able to support the growing demand for tires.

Factories are barely meeting demand, while they should already be preparing for winter-tire season. Grezgorz Jeziaka, CEO of Continental Opony Polska, told Dziennik Gazeta Prawna that consumers must take these limitations into consideration.

Enea buys Bia∏ystok power plant Utility Enea purchased 69.58% of all shares in Elektrociep∏ownia Bia∏ystok, a heat and power plant, from French energy company Société Nationale d’Électricité et de Thermique, Parkiet reported. The newspaper estimates the transaction value could have reached almost z∏.400 million. ●

INDUSTRY NEWS

www.wbj.pl

Petrochemicals

Coal sector

Orlen completes €1 billion petrochemical complex

JSW IPO launches

Following three years of work and €1 billion in investment, oil refiner PKN Orlen has completed what it describes as Europe’s most modern PX/PTA (paraxylene and terephthalic acid) petrochemical complex.

Both substances are necessary in the production of PET (polyethylene terephthalate), the basic raw material used in the production of plastic packaging and other plastic-based products.

One plant in P∏ock will produce paraxylene and a plant in

W∏oc∏awek will produce terephthalic acid.

Prime Minister Donald Tusk said at the opening of the W∏oc∏awek plant that the facility is the most modern in Europe. He also thanked those who participated in the project.

“I am speaking here about the Japanese partners Mitsubishi, and about the Americans and Italians. Everybody contributed a lot of thought and energy for the benefit of W∏oc∏awek, Orlen and the Polish economy,” Mr Tusk said.

Orlen’s new complex is the second-largest in Europe and will be able to produce 20 percent of the continent’s total output of PX/PTA, Orlen wrote in

a statement.

At its height, 2,000 workers participated in the project’s development.

“This is more evidence that investment in Poland has real momentum,” Mr Tusk said.

“Here are the places, here are the people, here are the ideas that make Poland first in Europe in terms of the number of new jobs.”

Orlen’s main rival, Lotos, has also ramped up infrastructure investments in recent years.

The Lotos oil refinery in Gdaƒsk, for example, has increased its processing capacity by 75 percent over the last three years.

Thomas Kolasa

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

Facilitated mergers and easier division of commercial companies Draft legislation proposed by the Ministry of Justice could change the Commercial Companies Code, regarding the procedures of mergers and divisions of commercial companies. The new law would allow companies to omit a report justifying a merger, provided that all shareholders give their consent. In addition, a merger plan will not have to be examined by an auditor. The new legislation also states that shareholders may agree that a merger plan or division of companies should be published on the website of the company instead of being published in the Court Journal.

Temporary contracts could be limited to a maximum of two years Social partners in a tripartite commission have launched negotiations regarding limiting the duration of temporary contracts.

It is proposed that employers be able to offer a contract for a maximum term of two years. Another proposal is that working-time settlement periods could be prolonged to a maximum of 12 months. Such

changes would limit the time for which contracts for a definite period are concluded and would make labor law provisions more flexible.

Product placement allowed On May 23, 2011 extensive new legislation to the Law on Radio and Television Broadcasting came into force. The most significant changes to the law refer to the question of advertising and other commercial broadcasting. Among the new provisions are those referring to so-called “product placement.” Product placement in films, TV series and light entertainment programs will be legal provided that, following the broadcast, information about the product placement is shown. The law also introduces an absolute ban on product placement in children’s programs.

Changes to the law are as a result of a growing market need for product placement. Until now entrepreneurs have been trying to circumvent the prohibition through signing sponsorship contracts.

The new legislation will probably considerably increase the popularity of product placement as a marketing tool and that, in consequence, should result in the development of the relevant market sector. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Poland’s Treasury Ministry reportedly launched the initial public offering of coking coal producer Jastrz´bska Spó∏ka W´glowa (JSW) last week.

As much as 33.1 percent of the state-controlled company will be floated on the Warsaw Stock Exchange, Reuters reported anonymous sources close to the transaction as saying. The company was due to list on June 6.

Another 16.8 percent of shares will be transferred to JSW employees, leaving the Treasury with a 51 percent stake in the company. The concession was necessary to appease unions nervous about the company’s privatization. The Ministry of Treasury declined to comment on the report.

The sale could raise up to z∏.7.1 billion, based on PKO Bank Polski and UniCredit valuations of JSW. The government would use the money to reduce the budget deficit and pare down debt.

The Polish state hopes to

SHUTTERSTOCK

A third of all shares in the miner will be floated on the WSE

COURTESY OF THE CHANCELLERY OF THE PRIME MINISTER

PM Tusk (third from left) with Orlen officials at the opening of the W∏oc∏awek facility

The facilities will produce acids needed in the production of various plastics

JUNE 6-12, 2011

Coal-miner JSW’s debut could raise as much as z∏.7.1 billion for the Polish state raise a total of z∏.15 billion from privatizations by the end of 2011.

In a statement announcing JSW’s plans to launch an IPO, Treasury Minister Aleksander Grad said he expected the deal to be one of the most significant privatization transactions in Poland this year.

“Given the expected significant value of the transaction,

we plan to offer JSW shares to a wide audience of institutional investors in Poland as well as to foreign investors worldwide,” he said.

JSW is Poland’s largest producer of coking coal. Its net profit amounted to z∏.619 million for the first quarter of 2011, a four-fold year-on-year increase.

Thomas Kolasa

Telecommunications

Polkomtel sale could fall through The sellers reportedly disagree with one another over the planned timetable.

They could lose z∏.18 billion Disagreement between four of the five companies looking to sell Polish telecom Polkomtel may result in the z∏.18 billion deal falling through.

The four companies in question are all connected to the Polish state and are, along with the respective investment banks they have hired as advisors, reported to have different approaches to the sale.

“There is a significant risk that the Polkomtel sale will end with nothing,” Reuters reported an unnamed source close to one of the sellers as saying.

“There are a number of state-owned shareholders, with nearly all of them having a different view on the transaction.”

One source said the disagreements were related to both the planned timetable for the sale and political concerns about the bid of Polish business mogul Zygmunt Solorz˚ak. Reports suggest the sale was due to be completed at some point during this month.

“The transaction is in serious danger,” Reuters reported

MATEUSZ GO¸ÑB/WBJ

6

Polkomtel operates the Plus network another anonymous source as saying.

“Investment banks are competing with each other, setting their own conditions. If they keep on doing that, the whole thing will derail.”

Sweden’s TeliaSonera, Mr Solorz-˚ak, private equity firm Apax and a joint venture comprising Telenor and Bain Capital have all been shortlisted to buy Polkomtel.

Polkomtel has been put up for sale by British Vodafone and a number of companies linked to the Polish state: utility PGE, refiner Orlen, miner KGHM and coal exporter W´glokoks.

If the sale comes to pass, Treasury Minister Aleksander Grad has suggested that the

state companies should pay a special dividend from their takings, which would help finance the budget deficit.

However, Jacek Krawiec, CEO of state-controlled oil refiner Orlen, said his company does not plan to pay out such a dividend.

“We have to watch out for our debt levels,” he told TVN CNBC. “We have very big needs and we will try to persuade the State Treasury not to use such a [dividend] policy in our case.”

Metals miner KGHM also said it didn’t intend to pay a state dividend. Only PGE has said that it would hand over 40-50 percent of its proceeds from the sale to the state.

Gareth Price

BUSINESS ENVIRONMENT

JUNE 6-12, 2011

Manufacturing

0

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Source: Central Statistical Office

1 01

11

y2 Ma

11

Ap

ril

20

11

20

20

rch

ry rua

Feb

Ma

11

0

20 ry

Jan

ua

r2

01

0 De

cem

be

10

01

20 No

vem

be

r2

10

er

20

tob

mb

er

20 st

gu Au

pte

Oc

0

10

40

Se

1

0

2

45

01

3

50

01

4

55

y2

Polish GDP growth over the last five quarters 5

Purchasing Managers Index for Poland, May 2010-May 2011 60

Jul

Leveling off?

Slower growth

0

Remi Adekoya

The Purchasing Managers Index for the Polish manufacturing sector came in at a below-forecast 52.6 points in May, as new orders fell. Prior to the release of the data, the market had not expected to see Poland’s score dropping below the 54 point level.

A PMI reading of 50 or above indicates expansion in the manufacturing sector, while anything below suggests contraction. A month earlier, Poland’s PMI score came in at 54.4 points.

The overall PMI for May was the lowest recorded since July 2010. A fall in the production sub-index and a contraction of new orders contributed most significantly to the drop, while the sub-index for new export orders recorded the strongest fall in the survey’s history. Only the employment index expanded significantly, growing at its fastest rate in three months.

Germany’s shrunk to 57.7 points from 62 points in April, while the euro zone as whole saw PMI fall to 54.6 points from 57.7 the month before.

Citibank wrote in a market comment that, “if the low readings continue, it could contribute to increasing concerns about the sustainability of the global economic recovGareth Price ery.”

“In general, the data were consistent with the scenario assumed by us, of a slowdown in production growth, a continuation of employment growth and a fall of exports’ importance in the creation of economic growth,” Bank Zachodni WBK wrote in a market commentary.

The drop in Poland’s PMI was accompanied by similar drops across Europe in May.

01

tions data will be additional arguments that are likely to tilt the scales towards a rate hike as soon as at the June 8 meeting,” Citigroup Global Markets analysts wrote in a report.

Przemys∏aw Kwiecien, chief economist at X-Trade brokers, believes there will be more interest rate hikes this year but says the only question is when.

“I think we will still have at least two interest rate hikes this year. However, if I were in

Employment was the only component index to see significant growth

e2

Poland’s gross domestic product grew by 4.4 percent yearon-year in the first quarter of 2011, according to the Central Statistical Office (GUS). The figure was in line with forecasts by analysts from Bank Zachodni WBK and Citigroup Global Markets, and only slightly lower than the 4.5 percent growth recorded in Q4 2010.

According to GUS, Polish economic growth in Q1 was mainly supported by domestic demand. Citigroup Global Markets analysts said that a recovery in investments and a rebound in construction output also supported growth during the period.

The National Bank of Poland released its latest inflation expectations survey on May 31, which revealed that Polish companies and households expect annual inflation of 4.3 percent within the next 12 months, up from the April figure of 4 percent.

“In our opinion the release of GDP and inflation expecta-

the Monetary Policy Council, I would vote for a hike in July, not June,” he said.

“One needs to take a measured approach to the issue, if you react too sharply, too fast, you might not see the effects of your actions. And you also tend to influence expectations, which is not always a good thing.”

Mr Kwiecien said there are clear signs of a deterioration in the economic climate in Western economies and that pressure to hike interest rates in these countries had abated significantly recently.

y2

Poland’s economy grew 4.4 percent in the first quarter of 2011, fueling further speculation that interest rate hikes would come sooner rather than later

May PMI data surprises on the downside

Jun

GDP powers forward at 4.4%, interest rate hikes expected soon

Ma

Economic growth

7

www.wbj.pl

* Indicates improvement on the previous month Source: Markit

8

INTERVIEW

www.wbj.pl

JUNE 6-12, 2011

Polish-Iranian relations

Warm past, uncertain future Poland and Iran have warm historical ties, but are on different sides of the issue of Israel, among others. WBJ sits down with Iran’s ambassador to Poland, Samad Ali Lakizadeh for a frank discussion Ewa Boniecka: As a member of the European Union (EU) and NATO, Poland is following the West’s policy on Iran and imposing sanctions against your country. How do you see the development of Polish-Iranian relations against such a backdrop?

Samad Ali Lakizadeh: We are aware of Poland’s commitments as a member of the EU and NATO. At the same time we believe that Poland, considering its weight and position in terms of geographical location and population, can exercise influence on others and can also be influenced by others.

We want to improve our friendly relations with Poland and the EU according to mutual respect and non-interference in the internal affairs of our respective countries.

Developing ties and increasing contacts would prevent misunderstandings and bad decisions from being made.

The United States of America has been imposing

sanctions on Iran for about 32 years now because of its independent policies. These sanctions have actually allowed us to discover our talents and capabilities and then develop them in order to reach self-sufficiency. But of course sanctions and embargoes are only used as political instruments for exerting pressure.

In recent years our business and foreign trade with the EU has fallen from 60 percent to 20 percent of total trade. The rest of the world has not waited and is replacing Europe in this regard. Moreover, the data show that our mutual trade with Europe last year grew 24 percent compared to the year before. In view of our historically friendly relationship with Poland, we hope that during Poland’s presidency of the EU Council we will see constructive and fruitful developments in bilateral relations between Iran, Poland and the EU. Iranian-Polish contacts have

been very good historically.

During World War II when the Polish Army under the command of General W∏adys∏aw Anders was evacuated from the Soviet Union, Iran offered generous hospitality to thousands of soldiers and civilians.

What significance does this historical background have for the relationship?

Positive historical ties are part of the identity of our two countries’ relations. This provides a great opportunity for

ered to be a difficult problem due to the development of its nuclear program and its refusal to acknowledge Israel’s right to exist. What is your take on the situation?

During the regime of the Shah of Iran, the United States offered a nuclear program to Iran. Then, with the democratic revolution in 1979, the Iranian people toppled the totalitarian regime along with the monarchy of the Shah of Iran, who was a puppet supported

“Positive historical ties are part of the identity of our two countries’ relations.” the present and the future of our nations and provides a basis upon which to maintain and improve our current ties.

There is a Persian saying that “everything fresh is good, but old friends are very good.”

New generations, managers and current or future policy makers considering present conditions should also be mindful of the past.

Let’s move to the present situation, in which Iran is consid-

by and under the command of the US. Since this time, America, deprived of its interests in Iran, has continuously tried to present a distorted and unreal picture of Iran and to make Europe follow suit.

The International Atomic Energy Agency (IAEA) is the only legal authority in respect to Iran’s peaceful nuclear program. Despite the IAEA’s total supervision and control, it could not prove any minor deviation in our peaceful

nuclear program. The US, as the country which armed Israel with nuclear weapons and made nuclear cooperation agreements with countries that are not members of the Nuclear Non-Proliferation Treaty [NPT], is the biggest violator of non-proliferation.

Unfortunately the EU lacks an independent foreign policy and just follows the US. Iran introduced the initiative of a Middle East free of weapons of mass destruction and nuclear arms 35 years ago and still preserve this idea, but the US is playing at hypocrisy.

Iran supports any decisions made by Palestinians regarding their destiny and their aspirations and ideals, because their total integrity and existence as an Islamic country which contains the original Qibla [the direction of prayer – ed.] of Muslims has been assaulted. We don’t recognize Israel because it was created on the basis of racial discrimination and terrorism and it exists illegally. Israeli leaders are sowing discord and causing divisions among Islamic countries and encouraging instability in the whole region and they don’t believe in humanitarian and moral principles.

How do you view the recent revolutionary developments in the countries of North Africa?

Do they have any effect on Iran?

These developments are the result of totalitarian regimes, supported by the US and the West, depriving and putting pressure on people over several decades. The nations of these countries are looking for the same thing that was achieved by the people of Iran three decades ago by changing the monarchy into the Islamic Republic of Iran. These developments not only have no effect on Iran, but also, according to the opinion of many people, are inspired by developments in Iran over the last three decades.

The West’s double standards are very tangible here.

The wishes and requests of the nations of both Libya and Bahrain are the same, but in Libya, for the sake of oil, the West supports the people against the administration and rulers, while in Bahrain, because of military bases, the West supports the Kingdom and its rulers against the nation, even though both nations are seeking the same outcome. The West is exercising double stan-

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INTERVIEW

JUNE 6-12, 2011

www.wbj.pl

COURTESY OF THE IRANIAN EMBASSY

last year. This is because Iranian businesspeople still connect Poland with its communist past.

As a result, Polish businesspeople should be more active in introducing themselves to the Iranian market.

Iran, with its population of 75 million, is a window to the markets of Central Asia and the Caucasus, and is a potential market of 400 million people if including peripheral countries. Compared to Iran’s major European commercial partners, it seems that Poland is more cautious than it needs to be. But in business, both sides always look after their own interests, which is natural.

Mr Lakizadeh feels Polish businesses should be more active in the Iranian market dards against its own values and treats them as a tool.

How would you describe the priorities of Iranian foreign policy?

The priority of our foreign policy is to maintain our interests and national security for the well-being and welfare of our people. We pursue this goal through [respecting] freedom, independence, friendly neighborhoods, mutual respect, rejecting unilateralism, opposing discrimination and bringing fairness and justice to international relations by correcting and reforming the structures of the United Nations, supporting peaceful coexistence and respect for diversity. The current structure of the UN Security Council was drawn up according to the circumstances present 70 years ago. Today, the world

has changed and this old and unfair structure is not able to maintain international peace and security anymore.

We are decisive in our aim to become the first economic power in the region by 2025, which is part of our 20-year economic development program. In accordance with our five-year economic plan, we are promoting free trade, privatization, abolishing tariffs, reviewing and resetting subsidies, improving infrastructure and communications, attracting foreign investments, increasing free trade zones and are planning to eventually join the World Trade Organization.

How do you view your relations with the US? The US, while it continues its militaristic policy, discriminating treatment, and intimidation and threatening behavior

towards Iran, cannot be considered a friend. We do not have any hostility and animosity towards the American people, but we believe that the American authorities should not waste taxes collected from its own nation for military aggression and the invasion of other countries.

The US considers itself as a claimant and defender of democracy, but in 1953 just for oil interests it prepared and masterminded a coup d’état against the democratic Iranian government. The US has supported Middle Eastern dictators for many years and still follows this policy. It is pursuing a policy of regime change in Iran and each day threatens us with the possibility of military action.

America should abandon this kind of behavior and respect our independence and

government in order to lay the foundations for a normalization of relations between our countries to be prepared.

How are Iranian economic relations with other countries, including Poland?

We view relations with all partners according to mutual benefits and free trade ... China, Japan, South Korea, Turkey and Venezuela are among Iran’s top trade partners.

Last year our trade balance with Europe was €24 billion.

Italy, the Netherlands, Germany, Spain and France are Iran’s biggest trade partners in Europe.

Anyway, business is business, and business always finds its own way. Our trade with Poland despite the huge potential and capacities on both sides, is relatively small.

It was less than $200 million

Polish-Iranian cultural ties were very strong in the past.

How are they now?

Cultural relations between our countries originate from the 15th and 16th centuries, and Polish people have always treated Iran’s rich culture and ancient civilization with respect. Iranology [Iranian studies – ed.] and the Persian language have been attributed great importance and are still taught in several Polish universities. Cultural, academic and scientific cooperation is already under way and we are looking forward to institutionalizing sport and tourist cooperation in the near future.

I personally feel good in Poland, because of the positive history and good memories regarding our relationship, and I have always been welcomed here. The joint and similar backgrounds and historical experiences of the two countries help us form a mutual understanding.

Finally, I would like to ask you about your opinion on the view expressed by some Western scholars regarding a “clash” of Christian and Islamic civilizations, and some descriptions of Islam as

9

a political tool for aggression towards the Christian world?

This claim is baseless and false. We do not believe in clashes among civilizations or between Islam and Christianity. We are against spreading racial and religious hatred, especially Islamaphobia in the West.

Today Islam, with around 1.5 billion believers and followers, is one of the biggest religions in the world. Islam is not just about praying, it is a way of life. The West should not consider rare violent and radical actions taken by some unaware and ignorant people as a rule of Islam. We initiated the idea of dialogue among civilizations and have played an important role in inter-faith dialogue. In Iran a minority of 200,000 Christians and Jews have four representatives in the Iranian parliament. Political elites, scholars, think tanks and artists should support peaceful coexistence, bilateral respect, mutual understanding, amity and kindness. In its history Europe has witnessed religious fights.

The Thirty Years’ and Hundred Years’ wars, as well as World War I and II, all took place in Europe and were started by Europeans, but we don’t consider that they stemmed from Christianity.

All divine faiths, especially Islam and Christianity, favor peace and friendship. The time of the Crusades has finished. Humanity in the postmodern era faces several problems and issues which only religions like Islam and Christianity are able to solve via cooperation and assistance from each other.

The [aforementioned] intellectuals and thinkers should avoid unilateralism and be in contact with Islamic researchers as much as possible in order to broaden their horizons. ●

10

OPINION & ANALYSIS

www.wbj.pl

JUNE 6-12, 2011

The future of German energy O

n May 30 the German government announced the seven nuclear power reactors that had been shut down in the aftermath of the Japanese earthquake and tsunami would never be reopened. In fact, they went on to announce the entire shuttering of the German nuclear fleet by 2022. Germany relies on nuclear power for roughly onethird of its electricity needs and at this point, the closure of the entire nuclear sector opens a four-way power game for the future of the German economy and German loyalties. Germany would like to replace the entirety of the nuclear industry with renewable power. Unfortunately for the Germans, this is not costpossible. Nuclear power costs less than one-third of wind power and is less than one-twentieth the cost of solar power. Replacing one-third of their total power generation within a decade is simply not feasible, much less possible. Which brings us to the other three options: the first is France.

France: nuclear power-up France’s entire post-World War II strategy has been about lashing itself to Germany so that Germany can never again threaten it. In the postCold War era, the strategy has been refined somewhat in order to make France as essential to German plans as possible. Unlike Germany, France’s population is remarkably

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

expensive nuclear power reactors which require several billion euro and five to 10 years to construct, you can put up a coal plant for as little as a few hundred million in a year or two.

Poland is, therefore, the country with an old, politically incorrect fuel source that actually has a chance of coming to Germany’s rescue in the shortest term for the lowest dollar amount.

Russia: gas game

pro-nuclear and so the French are going to be trying to build as many nuclear power reactors as possible so that they can export electricity to Germany to make up as much of the difference as possible. This has already been happening to a limited degree. In the aftermath of the Fukushima disasters in Japan, French power actors have been running up to the red line in order to supply power to replace those seven nuclear reactors that the Germans took off-line.

So the French already have a leg up in this competition.

Poland: cheap coal The second country is Poland.

Poland’s concerns are a little more complex. While the French are obviously concerned about what happens should Germany get too confident, the Poles are sandwiched between a resurgent Germany and a resurgent Russia. There is nowhere for them to turn; economically they can’t compete with either; demographically they can’t compete with either. They need a way to shape the relations of one or both of the states. The Polish advantage, somewhat ironically, is coal – a fuel that has been steadily phased out across Europe over the last 20 years.

Poland still gets 90 percent of its electricity from coal and unlike the

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The final player in the game is Russia. Russia has been attempting to secure a partnership with the Germans for decades and such a partnership would solve many of Russia’s long-term demographic, economic and military problems. A German-Russian partnership would neutralize Poland, and really, neutralize all of Europe. It would make it very difficult for the Americans to put forward any sort of anti-Russian policies in the European sphere of influence as there would simply be no one to carry them out. The United States needs Germany to at least be neutral in its relations with Russia, otherwise the Russians have a free hand in all the other theaters, and as powerful as the Americans are, so long as they are involved in the Islamic world they simply cannot counter Russia everywhere.

Economically, the Russians see Germany as their strongest trading partner and their largest source of foreign investment. They realize that if they can get their hook into the German soul, life simply gets easier.

Their plan is pretty simple. There is something called the Nord Stream gas pipeline, which bypasses all the transit states between the Russians and the Germans, that is in the process of final testing right now. It should come online at the end of this year and then slowly be ramped up to a full capacity of 55 billion cubic meters of natural gas per year. This 55 billion cubic meters of natural gas would be enough to replace half of the electricity that nuclear power has recently given Germany. All that has to be done is the construction of additional natural gas-burning power plants in Germany – the fuel is already there.

And so we have a four-part race: first, the Germans, who have a politically attractive plan that is economically unfeasible; second, the French, who have a politically attractive plan that is economically expensive; third, the Poles, who have a politically unattractive plan which is economically dirt cheap; and forth, the Russians, who already have the fuel source in place. ● This edited version of “The future of German energy” is reprinted with permission of STRATFOR

OPINION & ANALYSIS

JUNE 6-12, 2011

www.wbj.pl

11

Tolerance means not being ignored Greg Czarnecki

I

t’s been 22 years since the fall of communism, eight since “Let Them See Us” – the largest awareness campaign about gay and lesbian rights in Poland – seven years since Poland’s entrance into the EU, one year since the EuroPride event was held in Warsaw, and now Poland will take over the EU presidency in just weeks.

“Diversity itself is not a virtue, but a threat in the eyes of many Polish people” Surely it seems then that the situation for LGBT people in Poland has improved. Yet nothing is ever as simple as it seems. The history of tolerance and acceptance is far from linear in Poland, much as anywhere else.

Focusing on visibility It’s important to remember that homosexuality hasn’t been a criminal

offense in Poland since 1932. So while the LGBT movement in Western Europe had to deal with the legal ramifications of criminalization for the better part of the last century, our job as activists in Poland had to take on a much different dimension, focusing first and foremost on visibility and the social exclusion which homophobia and transphobia take in this country.

That is why our first campaign, “Let Them See Us,” showing tame, heteronormative pictures of same-sex couples, kicked up a huge public debate – and backlash – in 2003. This is also why mainstream politicians, such as current Deputy Speaker of the Sejm Stefan Niesiolowski, are quick to dismiss the LGBT community by claiming that “there is no legal discrimination, so there is no homophobia.”

Interestingly, despite Mr Niesio∏owski’s statement, Poland’s Senate was able to pass a bill just two weeks ago banning homosexual people, along with criminals, from becoming foster parents.

A fundamental barrier in overcoming this resistance amongst Pol-

ish society towards LGBT people remains the lack of diversity in general; and the fact that diversity itself is not a virtue, but a threat in the eyes of many Polish people.

An honest look If we were to honestly examine some of the sources of this attitude, we cannot overlook the role of the Catholic Church. Since Poland’s transition from communism, the Church has pounced on the opportunity to influence the public sphere. Most dangerous, in the long run, is the role it plays in schools. In so far as Polish youth are exposed to the LGBT community on TV, surfing the net, traveling abroad or by teenagers themselves coming out all around the country, they are ill-prepared – and sometimes completely misled – by schools that do not offer accurate and factual sex education.

This leads to a curious situation where, on one hand, the youth should be the most tolerant generation. But experience shows that a lack of a basic appreciation for individuality

and diversity, coupled with a lack of knowledge of human sexuality and Church-backed sexual repression, often means that “tolerance” is more like mild curiosity. (Read: “two girls are ok, gays can be funny on TV, but two guys kissing – no way!”)

No help from politicians Despite all of this however, it is clear that politicians are far from helping to improve the situation and are, in fact, hindering progress – not much of a surprise there. The fight to regulate same-sex partnerships is, as in many countries, the litmus test to see if Poland really is a “tolerant” country. A recent poll showed that over half of those surveyed are in favor of an SLD-proposed bill which would regulate both same- and different-sex partnerships.

Of course, the bill’s chances are currently slim to none, partly due to the strategy of the ruling Civic Platform (PO) party. While the Kaczyƒski twins were in power, all of Europe was focused on Poland as the EU’s homophobic sore spot. And it is true

that homophobic hate speech was rampant and basic civil liberties were threatened.

But “better the devil you know …” because as much as the current government refrains (sometimes) from overt homophobic speech, its strategy is clearly to avoid the topic at all costs, to sweep it under the rug and pretend to take on a live-and-letlive policy.

A truly liberal policy would look to promote civil rights, but PO’s version looks more like they are putting their fingers in their ears, pretending not to hear us.

That, in turn, leads many to wonder: “What are all these gays and lesbians talking about? As long as they don’t tell anyone they are homosexuals, there is no problem. Poland has a long history of tolerance!”

But you can’t be tolerant of something you pretend doesn’t exist, and so our struggle goes on. ● Greg Czarnecki is a board member of Kampania Przeciw Homofobii (the Campaign Against Homophobia)

Education reform adding value to Poland’s human capital Joanna Wóycicka

H

uman capital: you have to wait 10 to 20 years for a return on it. The costs of its creation are high, while its shares grow slowly in value and are never listed on the stock exchange. But it is precisely this kind of capital which will determine Poland’s future – political, social and economic.

The invisible ministry Poland’s Education Ministry rarely occupies the attention of foreign journalists, politicians and businesspeople. That’s a shame, because a real revolution has occurred in Polish education. Minister of Education Katarzyna Hall has, from the very start of her tenure, had a clear vision and strategy for change which she has gradually put into effect.

However, the unfortunate truth is that the effects of Minister Hall’s reforms will be seen in several years’ time at the earliest. Only then will people who have completed the new educational programs start to enter

the labor market.

Nevertheless, it can already be seen that young Poles are among the the best-educated in Europe, and their results are getting better all the time.

According to the latest report from the Programme for International Student Assessment, an initiative of the Organization for Economic Cooperation and Development (OECD), Polish children hold fourth place for reading and reading comprehension, as well as seventh place in natural sciences.

Young Poles took fourth place in a recent international IT competition, and fifth in a chemistry competition. Four Polish students returned with medals from the International Geography Olympiad in Taiwan, while five returned with medals from both the Physics and Math Olympiads.

Until recently, a huge problem in Poland has been a lack of places in nursery schools. However, great

progress has been made over the last three years – the number of places has increased by 20 percent. A real leap forward has taken place in Poland’s villages – there the number of nursery school places has doubled.

Vision and strategy The First Polish Education Congress was due to take place in Warsaw on June 5-6. It set itself the ambitious task of framing teaching plans in schools and drawing up a strategy for the next 20 years.

Prime Minister Donald Tusk’s government wants the educational system for children and teenagers to adapt to the developing needs of Poland and the world, and to take into account the latest technologies and demographic changes. The starting point for discussions was the Report on the State of Polish Education – the broadest treatment of the subject in the history of Poland, which was co-authored by leading Polish academics and teachers.

Not just cheap labor Until recently Poland was viewed as a source of cheap labor. However this image has radically changed in recent years. I am not thinking here solely of the Polish engineers and programmers who are highly sought after internationally.

The greatest advances are taking place right now in the training of much-needed tradespeople – electricians, mechanics and construction technology specialists.

In 2012, a wide-ranging reform of trade schools will come into effect.

Trade schools will be grouped into centers and their specializations will be adapted to the needs of the labor market in the particular region.

Above all, the reform will herald much closer cooperation between these schools and firms, as well as potential investors.

From an economic point of view, this is the most important element.

Investors and entrepreneurs will have well-educated workers available and

the system of trade education will be based on the assumption of rapid reaction to the changing needs of the market.

“The reform will herald much closer cooperation between these schools and firms, as well as potential investors” If this reform succeeds, then the whole of the Polish economy will see how important the development of a very special kind of capital – human capital – really is. ● Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com

Where no author is listed, the opinions are those of Warsaw Business Journal. Readers’ comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

WBJ would like to thank E. Blake Berry for the tremendous contribution he has made to this newspaper over the last five years. We wish him success in his future endeavors

PUBLISHER: VALKEA MEDIA SA DEPUTY EDITOR

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COVER STORY

www.wbj.pl

Poland wants PGE control Poland’s largest utility, PGE, wants to restrict the voting rights of its nonstate shareholders to 10% of the total share capital. If shareholders agree to the proposal, the Polish state would be able to reduce its stake in the company to below 51% and still retain control. Poland currently holds a 69.3% stake in PGE.

Poles love shopping malls Some 57% of Poles visit a shopping mall at least once a week, a recent study by market research agency GfK Polonia indicates. Among people in smaller towns, the percentage is even higher. For almost 70%, going on a shopping trip is a good way to relax, while only one in five consider it as an unpleasant chore. The research also shows that 54% of surveyed persons had visited three or more shopping centers in the last three months.

Shipyard to become business park Four office towers will emerge on a plot previously occupied by the Szczecin Shipyard.

The investment, called the Baltic Business Park, will be completed in Q1 of 2013, Puls Biznesu reported. However, access to the first buildings should be possible in July 2012. ●

JUNE 6-12, 2011

Politics

Leftovers Less than a decade after holding a monopoly on power, Poland's left just can't get it right This spring has not been particularly mild for the Democratic Left Alliance (SLD), Poland’s predominant leftist party. Just last month it saw two MPs defect to the ruling Civic Platform party (PO), including Bartosz Ar∏ukowicz, a rising star in politics. It also earned scorn for inviting a reality-show contestant (and former exotic dancer) to join one of its candidate lists in the autumn election.

Adding insult to injury, the media is taking bets on which MP will be the next to abandon the party.

It seems like SLD has suffered a run of hard luck lately, but in truth it hasn’t been particularly lucky since it lost power in 2005 after receiving a meager 11 percent of the vote.

This for a party which had previously, within the span of 15 years, produced four prime ministers, a two-term president and three parliamentary speakers. In the 2001 parliamentary election, the party won 41 percent of the vote.

The only good news SLD has received recently is that polls show it will probably be needed to form a majority after the October parliamentary elections. That means a return to the corridors of power looks likely, albeit as a junior coalition partner.

SHUTTERSTOCK

12

Grzegorz Napieralski has not been able to help his party regain its former popularity So how did a party which once dominated Poland’s political scene fall so low?

A poor role model According to Miros∏awa Grabowska, head of pollster CBOS, SLD’s woes are largely of its own making.

“I don’t think there has been a significant shift in Poles’ ideological orientation.

It is rather a problem with SLD, which hasn’t been able to recover since the scandalplagued era in which they ruled [2001 to 2005] and which they are identified with,” she said.

Another key issue, according to Ms Grabowska, is a lack of coherence in SLD’s political platform.

“I also don’t really see a

very coherent program coming from them. There is an element of gay and lesbian rights as well as criticism of the Church, but these are policies that are not very popular in Poland.”

In fact, SLD might have shifted a bit farther to the left than most Poles are comfortable with. When former Prime Minister Leszek Miller was in

Remi Adekoya charge of the party, SLD’s policy of “peace with the Church and very rational politics,” was both more coherent and more acceptable to Poles, Ms Grabowska said.

Indeed, rather than pursue a policy of peace with the Church, or at least neutrality, SLD’s current leader, 37-yearold Grzegorz Napieralski, has pointed to Spanish Prime Minister José Luis Zapatero as his political role model. Mr Zapatero is no doubt a political heavyweight who has successfully implemented far-reaching changes in Spanish society.

But in Poland he is considered by many to be a symbol of modern-day European anticlericalism. Declaring him an inspiration has not helped Mr Napieralski gain votes in a country which holds a special reverence for the Church due to its role in preserving Polish national identity during dark eras in its history.

“Napieralski was completely wrong in selecting Zapatero as a role model. The Spanish prime minister capitalized on Spain’s [negative] historical experience with the Church, which for many years supported Franco’s dictatorship, whereas in Poland the Church was one of the harshest critics of the communist totalitarian system,” said Sergiusz Trzeciak, a political analyst from Collegium Civitas.

“There is simply less fertile ground in Poland for attacks on the Church.”

Another problem for SLD and other European left-wing

COVER STORY

JUNE 6-12, 2011

Coalition speculation Despite SLD’s relative weakness, opinion polls seem to suggest that the party will stage a comeback of sorts after October’s parliamentary elections, probably as a junior coalition partner. But in whose government? It looks highly unlikely that the ruling PO party, even with current coalition partner the Polish Peoples’ Party (PSL), will have enough seats to form a majority after the votes have been counted.

No recent poll has shown the two parties will be able to claim the 50 percent-plus-one vote needed to pass a vote of confidence on a new government.

SLD might thus be invited to join a tri-party parliamentary coalition. But in recent weeks there has been a lot of talk in political circles to the effect that, rather than joining current Prime Minister Donald Tusk and PO, SLD might form a government with a party on the opposite side of the political spectrum, the conservative Law and Justice (PiS) party.

The rumor is that both PiS leader Jaros∏aw Kaczyƒski and SLD’s Mr Napieralski are so bent on dethroning Prime Minister Donald Tusk (whom both men are said to strongly dislike) that they are ready to forgo their ideological differences to achieve that goal. Mr Tusk and his party have been

13

Legal Eye

Another coalition government?

Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com Poland will hold new parliamentary elections this October for both the Sejm and Senate. The current coalition government comprising Civic Platform (PO) and the Polish People’s Party (PSL) has governed since winning snap elections held in 2007.

At this point in time no political party is expected to win a clear majority of seats in the Sejm, which means the next government will almost certainly be another coalition government. But just what is a coalition government?

SHUTTERSTOCK

parties is their inability to come up with a new “narrative,” to use a term favored by modern-day spin doctors.

After the global financial crisis in 2008 and 2009, many pronounced the death of capitalism, at least in its most laissez faire form. There appeared to be an opportunity for leftist parties to capitalize on the weaknesses of economic liberalism and come up with an alternative suggestion.

“The crisis was a disaster for neo-liberalism and what recipe did the left have? None.

The left didn’t have ideas for an alternative system, and it still doesn’t,” said Józef Oleksy, a member of SLD and former prime minister of Poland.

“Indeed, the left is generally weak in Europe now. When I was prime minister [19951996] 12 of the 15 EU members were run by leftist governments. Today the proportions have changed very much in favor of rightist parties,” he added.

www.wbj.pl

Coalition government The old and the new: former Prime Minister Leszek Miller with SLD leader Grzegorz Napieralski suggesting for weeks that PiS and SLD have already decided to rule together. But opinions on whether or not this is a realistic option seem to vary.

“Absolutely not. It would be suicide for SLD to form a coalition with PiS, which is hated by many SLD voters,”

possible in politics,” said Ms Grabowska.

Could PiS and SLD find common ground? Looking at the parties’ positions on issues like same-sex partnerships, it’s hard to imagine. But one area where the two parties have a similar stance is economics.

“It would be suicide for SLD to form a coalition with PiS” said Wawrzyniec Konarski, a political analyst from the Warsaw School of Social Sciences and Humanities.

Although stressing that nothing is impossible in politics, Mr Trzeciak said he thought it highly unlikely that the two parties could form a coalition as it would be very negatively viewed by both their supporters.

But Ms Grabowska was not so sure. “Although I would lean towards the opinion that such a coalition is impossible, I also would never have imagined that PiS could form a coalition with the [populist] Self-defense and [arch-conservative] League of Polish Families. But they did [in 2005] and since then I am much more cautious in predicting what is or is not

In Poland, social conservatism does not necessarily go hand-in-hand with far-reaching economic liberalism.

Unlike the conservative Republican Party in the US or the Tories in the UK, for instance, PiS holds economic views usually expressed by parties on the left. The parties share the belief that strategic firms should remain in state hands, for example, and that the state bears a responsibility to help the less-fortunate with increased social spending.

An autumn wedding Asked about hopes for the autumn election, former PM Józef Oleksy stated that SLD hopes to break the 20 percent barrier. However, he himself notes that the party has allowed

PiS to appropriate some of its leftist economic slogans as well as some of its electorate. Given SLD’s performance in the past few elections, 20 percent seems over-optimistic.

Mr Konarski was doubtful SLD could hit the mark. “PO will campaign as the only party capable of blocking PiS from taking power and many people will respond to this. Up until now SLD has been unable to find the right program and the right people. And when a star like Mr Ar∏ukowicz did emerge, the party leader didn’t know how to utilize him for the benefit of the party and he left,” Mr Konarski said.

“This tabloidization of the party, inviting a reality show contestant and all that, will lead nowhere because it will not impress people who are not hardcore supporters of the party but were considering voting for them,” Mr Konarski said, adding that Grzegorz Napieralski is not a “dynamic” leader.

It seems SLD has its work cut out if it wants to regain even a measure of its former popularity. Whatever the final result this October, odds are now that the party will end up in a marriage of convenience.

The question is, will its partner be PO or PiS? ●

In its simplest form, a coalition government is a cabinet of parliamentary government comprised of two or more political parties elected to parliament. The primary reason to form a coalition government is because no political party has won a majority of seats in parliament. A coalition government that commands a majority of the votes in parliament tends to be more stable and to have a longer life expectancy in comparison to a minority government or a minority coalition government. In recent years Poland has had two minority governments, one a coalition and one not.

Polish experience Poland has witnessed five majority coalition governments and two minority governments since the first free parliamentary elections were held in 1991. The first coalition government, between the Democratic Left Alliance (SLD) and PSL, formed following the 1993 elections, served out its entire term, but only after going through three different Prime Ministers.

Following the 2005 elections PiS formed a minority government, but quickly found it necessary to enter into a formal coalition government with Self-defense in 2006. But after this uneasy coalition collapsed, it, result-

ed in early elections in 2007, leading to the current POPSL coalition government.

Constitutional basis Here comes the surprising part: The Constitution does not regulate the creation of a coalition government. It does not even mention it. Nothing.

Zip. Not one word. The Constitution does, however, set forth the procedures to select a Prime Minister and his or her Council of Ministers, but gives no information about forming a coalition government in the event one political party does not win an absolute majority.

Instead, the Constitution merely requires that following the appointment of the Prime Minister by the President of Poland and nomination of the Council of Ministers by the newly appointed Prime Minister, the appointment of the new Prime Minister and Council of Ministers must survive a vote of confidence by the Sejm.

In other words, the new government must obtain an absolute majority of votes in the presence of at least half of the 460 member Sejm.

Alternatively, the Sejm may select the Prime Minister if it fails to support the person nominated by the President.

But again, any person nominated to be Prime Minister is subject to a vote of confidence by the entire Sejm.

If the person nominated Prime Minister is unable to garner the necessary votes to pass a vote of confidence by the Sejm, the President of Poland will dissolve the Sejm and call for new elections. At this point the entire process to form a new government will begin anew.

If recent polls are to be believed, though, the current Prime Minister would appear to have nothing to worry about in the upcoming election, with his party looking set to win a plurality, though not a majority, of seats. ●

Investing in Poland 2011 is available now!

presents

We have also launched a new website for investors!

For investment news and analysis, visit: www.investinginpoland.wbj.pl

To order a print copy or CD-ROM version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67 ext. 208

14

COVER STORY

www.wbj.pl

JUNE 6-12, 2011

Interview

Confusion on the left Remi Adekoya: Why has SLD, Poland’s biggest leftist party, not been able to get up to 20 percent of the vote in any election since 2005?

Józef Oleksy: Surveys show that the potential electorate for a leftist party in Poland is around 30 to 35 percent.

Unfortunately SLD has lost support in recent years and that is due to various reasons.

Let’s go back to when we became popular in the early 1990s. Thanks to our support, economic reforms were implemented, but the right did not pay attention to the negative social consequences of these reforms.

We saw what would happen and even though we supported the reforms we spoke out against the negative consequences. This worked for us. People believed that the left was different, that it was an alternative. From 1993, we systematically increased our support and won 41 percent of the vote in 2001, a huge success. But Leszek Miller’s [SLD] government made

Europe was shaped by Social Democratic parties but right now, the left is weak and growing weaker.

The left didn’t know how to capitalize on the crisis, which was a failure of neo-liberalism. The left today does not have any alternative systemic ideas.

Is that because it believes in the system or has at least been co-opted by it?

That’s true. The communists fought capitalism but the social democrats said they accept capitalism and that helped them keep their influence and power, especially after the collapse of communism. Today when the world is at a crossroads and there are more and more economic crises occurring, the left is confused. Traditionally leftist parties were always against the status quo. Conservatives were always for maintaining the status quo, adhering to nature’s laws etc.

Thanks to this conflict of ideas and ideals, new and

“The left didn’t know how to capitalize on the crisis, which was a failure of neo-liberalism” some mistakes. Financial scandals were reported by the media and slowly we started losing support and began to be branded as a party that abused power. There were also internal conflicts like the one between President Aleksander KwaÊniewski (who cofounded SLD) and Prime Minister Leszek Miller. This conflict was evident to the public and internal party conflicts don’t play well with Poles at all.

But that was then. In 2005 a young generation of politicians took over the party – and they haven’t achieved much so far.

That’s true, and the question is: Can they revive the left?

The aim of a party has to be to win power so it can singlehandedly shape the country according to its views. But for now, the objective seems to be participation in a coalition, and that is close. Why is there a problem? Here we come to issues of social philosophy.

improved systems of government and institutions emerged in democratic countries. When that conflict and intellectual ferment ceased, so did the new pool of ideas.

And in recent years, the left has demonstrated an inability to decipher reality and formulate a language which would be an alternative to what the conservatives were saying.

The left has become a mirror reflection of the right. In recent years, it has been saying more or less the same as the right, and only adding some social elements. An invasion of Iraq? Of course.

War in Afghanistan? No problem. There was no significant issue on which the left said “OK stop, that’s enough.

We are saying something different, we are saying let’s do it this way, not that way.” Today, the left doesn’t know how to mobilize people to be either for something or against something. And in today’s world, people react only to strong calls for action. Our

young leaders have not yet found such a language.

Traditionally the left appeals to the marginalized and frustrated. But today Law and Justice [PiS] seems to be doing a better job of appealing to those frustrations and pointing out the cause of people’s problems. In the case of the ruling Civic Platform [PO] party, it can use PiS as an enemy around which to rally its voters. But SLD has no enemy to help it gain support. Do the current leaders realize this?

No. Nowadays, people are demanding less and less of politicians, and so many politicians themselves are happy with repeating empty slogans and generalities for the cable news networks. We live in the soundbite era and our young leaders are making use of that. But it is not enough just to be on TV, you should also have something to say. The left has a big problem here. We cannot scream louder than PiS when attacking the government. They are simply better than us at that.

PO is currently ruling Poland and will be judged on this, but they are good at defending themselves. The left, meanwhile, has always had a problem because it has always tried to be politically correct, to be proper and not radical.

Our young leaders have simply not been able to translate their aspirations into the language of attack. They want power but don’t have the instruments with which to attain it. They are also faced with media organizations which don’t necessarily have a pro-social stance. So basically, they say what they think the news editors will put on air.

And again, we go back to that unbearable correctness. The problem is you don’t win the crowds with correctness.

Your party had a star and crowd-puller, Bartosz Ar∏ukowicz, but he decided to leave SLD and join PO. What are your thoughts on that?

Yes, and that was a big loss for the party even though I think it was a very opportunistic move on Mr Ar∏ukowicz’s part.

So what program will SLD be offering voters this autumn?

It will be a program advocating the protection of women’s rights, minorities rights, and tolerance for sexual minorities.

But will these slogans interest many Poles? Experience

would suggest that the average Pole today feels minority groups are not being actively discriminated against and that political correctness may have even gone too far.

That is a relevant observation.

Polish social democrats took over these slogans from European leftists and the European left has been the flagbearers of these slogans for many years. But we adopted that message in a different society from those in Western Europe. Those societies were very receptive towards these beliefs but you may be right that we might be misjudging what the Polish voter is interested in. On the other hand, no other party is advocating the same kind of message, somebody has to say these things.

Apart from minority rights, what else does SLD have to offer?

The party leadership must take a stance on pensions and the retirement age. It must speak sharply on the deficit but be able to propose something constructive. There is also the issue of health care and social services where there is vast room for improvement to say the least.

There is the issue of peoples’ jobs being at risk due to the economically turbulent times in which we are living. Then there is emigration. Where are the limits? As many as five million people may have emigrated from Poland in the last 10-15 years. You can’t expect to be taken seriously as a country if so many of your citizens emigrate each year.

What does SLD offer the business community?

Personally, I think taxes should be lowered. But that is my personal opinion and I know the left is usually for progressive taxes. But maybe it might be a good idea to lower taxes instead of buying more American planes. I have always been disturbed by the fact that every expense in the budget can be cut, but not military spending. After all, who is threatening us today?

We are a safe country.

Another issue I feel needs to be addressed is the public finance situation. We need to reduce our debt and deficit.

Maybe it’s time somebody told people we need to reduce our deficit to 3 percent. It will hurt for two or three years but it will leave us stronger in the long-term. However, only a very strong politician can make that type of decision

STAWI¡SKI/REPORTER

WBJ sits down with former Polish prime minister, parliamentary speaker and SLD leader Józef Oleksy to discuss the situation in his party and what the future holds for the left in Poland

Former Prime Minister Józef Oleksy won’t say “never” to a coalition with Law and Justice and convince people to accept it.

We need to promote innovation and entrepreneurship and eliminate bureaucratic procedures which limit economic freedom.

Poland is taking over the EU presidency this July. What are your expectations?

I dislike approaching this event as something almost holy. Some think the whole world will be observing us during this period. This is not true, but it will of course be a nice moment in Polish history. Honestly speaking I once proposed scrapping the institution known as the EU presidency. Of course in Poland I was accused of being a traitor, but I find it a bit ridiculous that every six months even a very small country can want to rule the EU. The Polish government had a concept for the presidency, it wanted the Eastern partnership to be pushed to the forefront. The problem is that the financial crisis and the situation in North Africa and the Middle East has shifted the EU’s attention towards those issues. Poland must find an answer to this and a way to respond to this situation.

There have been many reports in the media recently that SLD is planning a coalition with the conservative

PiS after the parliamentary elections, is there any truth to these rumors?

Some treat PiS like a party which has been ex-communicated. I call it doctrinal antiPiSism. I am against that because I remember when some people wanted to treat SLD in exactly this manner.

After all, PiS is supported by roughly thirty percent of Poles. I am against saying never with PiS. Having said that, I believe that if the two parties were to form a coalition, it could lead to a split in both parties. It would really be very difficult for each party to convince its electorate that it was the right move. Most probably though, PO, even with its current coalition partner PSL, will not have enough votes to form a majority. So no government will be possible without SLD. The question is should SLD join an eventual coalition with PO and PSL? I am not so sure it should do so at any cost. Such a situation would situate PiS as the only opposition party in parliament and it could calmly sit back and deliver blows to the government. I believe difficult times are coming, so PiS’s job will be quite easy.

Before you know it, four years will have gone by and then PiS will be in a position to win outright and rule Poland. ●

MARKETS

JUNE 6-12, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,258.20 (June 2 close)

S&P500

2,742.43 (June 2 close)

-1.10% (for the week)

FTSE100

1,314.53 (June 2 close)

-1.58% (for the week)

DAX

5,860.99 (June 2 close)

-0.88% (for the week)

-0.28% (for the week)

US data frightens investors

NIKKEI225 7,102.22 (June 2 close)

9,555.04 (June 2 close)

-0.13% (for the week)

-0.02% (for the week)

CHANGE: 5.88%

CHANGE: 2.46%

CHANGE: 4.53%

CHANGE: -0.66%

CHANGE: 1.85%

CHANGE: -7.70%

(year to June 2)

(year to June 2)

(year to June 2)

(year to June 2)

(year to June 2)

(year to June 2)

52-week high: 12,928.50

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 9,596.04

52-week low: 2,061.14

52-week low: 1,010.91

52-week low: 4,790.00

52-week low: 5,798.76

52-week low: 8,227.63

Andrew Nawrocki, market analyst & trader, gowebtrade.com

49,824.93 (June 2 closure)

WIG20

2,896.05 (June 2 closure)

Top 5 BEST MISPOL MEWA MIDAS ANTI

Closing 8.96 5.90 0.78 2.35 2.45

02.06

01.06

31.05

30.05

27.05

26.05

25.05

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23.05

20.05

19.05

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17.05

02.06

01.06

31.05

30.05

27.05

26.05

25.05

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23.05

20.05

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2,800

18.05

48,000

17.05

2,840 16.05

48,600

13.05

2,880

12.05

2,920

49,200

11.05

2,960

49,800

10.05

50,400

09.05

3,000

06.05

51,000

16.05

52-week low: 2,270.52

13.05

Change year to June 2: 5.13%

12.05

52-week low: 39,366.83

11.05

52-week high: 2,932.62

Change year to June 2: 4.57%

10.05

Change for the week: 1.41%

09.05

52-week high: 50,371.74

06.05

Change for the week: 1.24%

% change (week) 52-week high 32.35 21.00 29.1 7.79 20.00 0.82 18.09 6.22 16.67 3.80

52-week low 6.00 4.16 0.01 1.36 1.41

Top 5 ASSECOPOL TVN CEZ PKOBP LOTOS

Closing 52.70 17.32 152.80 44.00 46.50

% change (week) 6.25 3.96 3.03 2.33 1.91

52-week high 58.70 18.90 154.10 46.81 49.42

52-week low 46.99 15.95 118.70 36.15 28.35

% change (week) -89.93 -52.94 -28.84 -25.00 -12.8

52-week low 11.60 0.16 16.01 0.58 5.03

Bottom 5 CYFRPOLSAT POLIMEXMS PBG BZWBK PZU

Closing 16.90 3.06 139.20 227.00 391.00

% change (week) -2.59 -1.29 -1.28 -0.61 -0.43

52-week high 17.35 4.84 252.00 235.30 411.00

52-week low 13.36 2.91 134.70 179.00 337.50

Bottom 5 Closing MENNICA 11.60 IGROUP 0.16 WISTIL 16.01 PRONOX 0.87 PETROLINVEST 8.24

52-week high 137.00 0.95 30.90 2.32 14.00

Currency report

Storm clouds gather

Other indices 2,944.35 (June 2 closure)

sWIG80

12,675.91 (June 2 closure)

NewConnect

57.09 (June 2 closure)

WIG-Banki

7,109.33 (June 2 closure)

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

6,800

19.05

56.0

18.05

6,900 17.05

56.6

16.05

7,000

13.05

57.2

12.05

7,100

11.05

57.8

10.05

7,200

09.05

58.4

06.05

7,300

16.05

52-week low: 5,751.39

13.05

Change year to June 2: 2.12%

12.05

52-week low: 54.52

11.05

52-week high: 7,387.49

Change year to June 2: -9.97%

10.05

Change for the week: 1.80%

09.05

52-week high: 64.39

06.05

Change for the week: 0.48%

59.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

12,200

19.05

2,800

18.05

12,320 17.05

12,440

2,840

16.05

2,880

13.05

12,560

12.05

2,920

11.05

12,680

10.05

2,960

09.05

12,800

06.05

3,000

16.05

52-week low: 10,980.45

13.05

Change year to June 2: 3.48%

12.05

52-week low: 2,361.69

11.05

52-week high: 12,932.00

Change year to June 2: 4.87%

10.05

Change for the week: 2.18%

09.05

52-week high: 2,987.72

06.05

Change for the week: 0.76%

SOURCE: WSE

mWIG40

generally don’t lie.

Although most investors foresaw weak data, few expected such a low figure.

As of Friday at 5:00 pm, the WIG and WIG20 were about a quarter of a percent and half a percent lower, respectively.

The beginning of the week, though, was different.

On Monday the WIG gained 0.14 percent, while on Tuesday the WIG climbed 1.08 percent. On both Wednesday and Thursday, with poor macroeconomic data released in the US, the WIG closed both days nearly 0.20 percent lower. Throughout the week stocks from the telecoms sector did moderately well.

It is likely we will see continued declines this week on the back of last week’s poor data. ●

The old saying “sell in May, and go away” seems to have taken on a new meaning. At the end of last month, which finished Tuesday, the Polish stock market closed generally flat. The bears controlled the market at the start of May, while the last two weeks were largely determined by the bulls.

Upward movements – and last week was no different – have largely been the result of continued hope that both the US Federal Reserve and the “Troika” (a market term for officials at the IMF, ECB and EC) will come to the rescue and prevent a slowdown.

Unfortunately, hope can only take you so far, and numbers, such as Friday’s below-forecast US nonfarm payroll data (predicted: 160,000; actual: 54,000),

Major indices WIG

15

Macroeconomic data indicates the US economy’s recovery is slowing. The ISM Manufacturing Index declined by more than expected, while disturbing news came from the country’s labor market. The latest ADP Employment Report showed only 38,000 new jobs in the private sector against a 177,000 forecast. Friday’s non-farm payrolls, moreover, showed that only 54,000 jobs had been added, substantially below the 160,000 forecast. The data show that it will be hard for the US economy to recover quickly. The slowdown in the labor market will certainly make it difficult for the Federal Reserve to even talk about tightening monetary policy any time soon.

The dollar has been under

pressure recently, with the EUR/USD climbing from $1.43 to $1.45 last week.

Despite the bad news flowing from international markets, the z∏oty didn’t depreciate.

The weakness of the dollar caused the USD/PLN to drop from z∏.2.78 to z∏.2.72.

The EUR/PLN was more volatile, finishing the week at z∏.3.95, but moved in the 3.94-3.97 range throughout the week. Data showed the Polish economy grew by 4.4 percent y/y, in line with most expectations. If the dollar remains weak, the USD/PLN might reach z∏.2.62.

The summer is a time for lower volatility but if macro news keeps indicating the onset of a slowdown, and if problems at the euro zone’s troubled periphery don’t go away, the z∏oty might see further corrections. ●

currency rates 3.3913 03.06

SOURCE: NBP

3.4079 02.06

3.3793 01.06

3.4402 30.05

3.0

3.3709

3.4567 27.05

0.0980 03.06

02.06

01.06

31.05

30.05

0.09

27.05

03.06

02.06

01.06

31.05

30.05

27.05

3.0

31.05

PLN-100JPY

3.5

0.0985

0.0982

0.0982

0.0991

0.0994

3.2449

3.2666

3.2403

3.2254

3.2612

PLN-RUB

0.10

4.4617 03.06

4.5146 02.06

4.5084 01.06

4.5312 31.05

4.5828 30.05

4

27.05

4.5944

2.7315 03.06

02.06

01.06

31.05

30.05

27.05

PLN-CHF

3.5

3.2694

PLN-GBP

5

2.7578

2.7479

2.7468

2.8003

3.9598

2.5

03.06

3.9740

2.7810

PLN-USD

3.0

02.06

3.9595 01.06

3.9569 31.05

30.05

3.9785 27.05

3.8

3.9726

PLN-EUR

4.2

Echo Investment has sold an existing mall and started construction on two new ones

SwedeCenter is building a new office park in Warsaw’s W∏ochy district

17

18

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

Developer Rank Progress has announced it will complete 16 new shopping facilities by 2014. The money devoted to these investments will amount to around z∏.2.2 billion. In accordance with the firm’s strategy, the new retail investments will be realized in small and medium-sized cities.

Three of the shopping facilities, located in Kalisz, Krosno and Âwidnica, are already under construction.

Rank Progress has been active in the Polish market since 1997, earning z∏.34.61 million in Q1 2011.

Poleczki Park pre-certified Two under-construction buildings comprising the second phase of the Poleczki Business Park office complex in Warsaw have obtained LEED CS Gold pre-certificates, granted by the Green Building Certification Institute.

The certification process will finish once the structures have been completed and turned over for use.The two buildings, which are located in Warsaw’s Ursynów district, will deliver a combined 21,000 sqm of class-A office space. ●

In this issue National Stadium delay . . . . . .16 JLL-King Sturge merger . . . . . . .16 Echo Investment sells and builds . . . . . . . . . . . . . . . . . .17 Promenady cornerstone . . . . .17 Property-related stocks . . . . . .17 Business Garden project . . . . .18 Nowe Centrum Katowic . . . . .18 Nowa Wileńska scheme . . . . . .19 Retail Horizons Conference . . .19

JUNE 6-12, 2011, LI 16/22

Euro 2012

National Stadium builder faces heat over construction defects Representatives of the government say the contractor building Poland’s National Stadium in Warsaw must correct defects found in the construction. The contractor says it’s not to blame With the possibility of huge delays looming over the completion of Warsaw’s National Stadium, its operator, Narodowe Centrum Sportu (NCS), has delivered a strict ultimatum to the investment’s general contractor, a Polish-Austrian consortium Alpine- Hydrobudowa – PBG. The consortium has been given 14 days – starting from June 1 – to present a plan as to how it will correct faults found in the stadium’s construction.

NCS issued the ultimatum after PL.2012, the Ministry of Sport and Tourism’s special purpose vehicle supervising the work on infrastructure for Euro 2012 games, found that delays were creeping into the construction schedule.

Additionally, NCS found that the stairs leading to the upper-level stands had not been built to withstand the large number of soccer fans that the facility is expected to host during the championship.

“Currently, the most important thing for NCS is to obtain a corrective plan from

COURTESY OF NCS

Rank Progress investment plans

•

“The consortium could pay up to z∏.100 million per month in penalties” the consortium and to see the implementation of the new strategy by the contractor,” NCS said in a statement.

According to NCS spokes-

person Daria Kuliƒska, it is keeping all of its options open, including the possibility of dismissing the general contractor and announcing a ten-

der to appoint a new one.

When asked about the numerous subcontractors working on the stadium, she said that most of them would

be willing to continue the work and probably would not be dismissed.

In response, the consortium issued an official statement that reads, “Until the negotiations with the client [NCS] are over, we restrain ourselves from any comments concerning this issue.”

However, later in the statement, the consortium says, “We are concerned by suggestions and attempts to put the blame for the flagrant infringement of the agreement on the contractor.”

Enormous penalties are at stake. A spokesperson for the Ministry of Sport and Tourism who asked not to be named told Lokale Immobilia that the consortium could pay up to z∏.100 million per month in penalties.

“And this z∏.100 million a month is only the penalty for the delay that would be counted from July 1. If the consortium breaks the agreement, it will pay another penalty,” the spokesperson said.

Katarzyna Piasecka

Jones Lang LaSalle and King Sturge merge Global commercial real estate company Jones Lang LaSalle (JLL) merged with international property consultancy King Sturge on May 31. Under the terms of the transaction, JLL will pay £197 million to the partners of King Sturge, with £98 million paid in cash at closing and the balance paid in cash over five years.

All 43 of King Sturge’s offices across Europe will

become part of JLL and will operate under the company’s brand. The merged business will operate in 70 EMEA markets across 30 countries employing 5,300 people.

Both parties also anticipate the integration of business lines and teams, and the full rebranding of all business activities.

“We are tremendously excited to combine these

two outstanding firms. Each has a reputation for excellence based on teamwork and putting clients first. Our new leadership team is already in place, consisting of senior directors from both firms, and their immediate focus will be to begin to realize the extraordinary potential of the merger for our clients and colleagues,” Andrew Gould, UK chief executive of the merged

business, said in a statement.

“Merging brings us new and strengthened leadership positions in a number of markets, most notably in the UK and across CEE & SEE. However, both King Sturge and Jones Lang LaSalle strive for leadership by reputation in preference to any pursuit of scale,” John Duckworth, managing director of JLL’s Central &

Eastern Europe operations, said in a statement.

“Our continuing aim is to attract the best people who build the best teams which provide the best service.

That approach underpins our core goal which is always to work hard to exceed expectations. Right from the outset, that is our primary objective,” Mr Duckworth said.

Katarzyna Piasecka

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

LOKALE IMMOBILIA – REAL ESTATE

JUNE 6-12, 2011

www.wbj.pl

UPC stays in UBC II

secured a valid building permit for the investment. The scheme will offer more than 16,000 sqm of GLA and is scheduled for completion in autumn 2012.

Listed on the Warsaw Stock Exchange since 1996, to date Echo Investment has developed more than 80 projects in 28 Polish cities, totaling some 700,000 sqm. The company is also present in the real estate markets in Romania, Hungary and Ukraine.

the Echo Investment group remains the property’s facility manager.

In related news, Echo Investment announced the launch of construction on its Galeria Amber shopping and entertainment center in Kalisz, Wielkopolskie voivodship.

The scheme will deliver 33,500 sqm of GLA. In addition, in ¸om˝a, Podlaskie voivodship, the developer can now start construction on a new mall called Galeria Veneda, having

Adam Zdrodowski

COURTESY OF ECHO INVESTMENT

Echo Investment sells Be∏chatów mall, builds in Kalisz and ¸om˝a Developer Echo Investment has sold its Echo shopping center in Be∏chatów, ¸ódzkie voivodship, to a subsidiary of Nicosia, Cyprus-registered Vousoka. The company is now building a new retail facility called Galeria Olimpia in the same city.

The Echo mall was sold for z∏.44 million. It comprises 9,300 sqm of GLA which is currently taken up by tenants including Carrefour, Nomi, RTV EURO AGD and Deichmann. A company from

Galeria Veneda is scheduled for completion in autumn 2012

Cornerstone laid for Promenady Epsilon building in its Promenady Wroc∏awskie mixed-use project in Wroc∏aw.

COURTESY OF VANTAGE DEVELOPMENT

Vantage Development last week laid the cornerstone for Promenady Epsilon, the first

Promenady Wroc∏awskie will cover two hectares near the Oder River in Wroc∏aw

The 6,670 sqm building was designed by the AP Szczepaniak architectural studio, which also designed the Arkady Wroc∏awskie shopping center.

This part of the investment is planned to be commissioned into service at the end of Q2 2012.

Promenady Wroc∏awskie’s design calls for some 2,000 apartments and 80,000 sqm of office space, as well as retail, service, hotel, cultural and educational facilities. The development will cover some 20 ha in the vicinity of the Oder River and the city’s Municipal Canal.

17

The design process is being led by world-famous architect and urban planner Guy Perry, and is expected to be completed within eight to 10 years.

“The project of Promenady Wroc∏awskie has been made in consistency with the zoning plan for the area. The key ideas for the development of the investment were elaborated in partnership with Wroc∏aw City Hall. … The project is an answer for the progressing demand on Wroc∏aw’s real estate market. It is also an effect of observations of societies living in large agglomerations. We

Property-related stocks Security

Closing price on June 2

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

93.00

-7.46

84.55

109.20

-4.91

25,530,098

2,374.30

CELTIC

19.41

-4.15

17.00

60.55

N/A

34,068,252

661.26

DOMDEV

46.50

-1.38

38.52

49.90

-10.49

24,560,222

1,142.05

ECHO

5.30

-0.19

4.15

5.55

22.12

420,000,000

2,226.00

ELBUDOWA

156.30

-1.01

149.00

188.40

-8.06

4,747,608

742.05

ENERGOPLD

4.00

0.25

3.57

4.26

-7.19

70,972,001

283.89

ERBUD

26.05

-8.27

25.50

61.00

-51.31

12,602,711

328.30

GANT

12.35

-7.35

11.90

23.38

-44.37

20,499,953

253.17

GTC

19.55

1.56

17.58

24.98

-18.51

219,372,990

4,288.74

HBPOLSKA

2.10

2.94

2.02

3.90

-37.87

210,558,445

442.17

JWCONSTR

15.35

-0.26

13.50

18.69

-8.08

54,073,280

830.02

LCCORP

1.52

0.00

1.41

1.72

2.01

447,558,311

680.29

MARVIPOL

8.43

0.36

7.40

16.49

-48.91

36,923,400

311.26

MIRBUD

4.00

1.52

2.82

4.75

38.89

75,000,000

300.00

MOSTALWAR

32.60

0.31

32.50

72.55

-54.79

20,000,000

652.00

MOSTALZAB

2.85

7.55

2.54

4.14

-28.57

149,130,538

425.02

ORCOGROUP

34.56

-7.59

19.00

40.00

41.70

14,053,866

485.70

PBG

139.20

-1.28

134.70

252.00

-34.18

14,295,000

1,989.86

PLAZACNTR

4.55

-4.21

3.70

5.59

-12.50

292,647,720

1,331.55

POLAQUA

17.00

-9.57

16.00

20.60

-3.90

27,500,100

467.50

POLIMEXMS

3.06

-1.29

2.91

4.84

-32.15

521,154,076

1,594.73

POLNORD

27.85

-3.80

27.49

39.41

-25.34

23,798,439

662.79

RANKPROGR

13.28

4.48

9.59

13.60

N/A

37,145,050

493.29

ROBYG

2.04

9.09

1.70

2.13

N/A

257,390,000

525.08

RONSON

1.44

-0.69

1.36

1.81

-17.71

272,360,000

392.20

TRAKCJA

3.01

5.61

2.49

4.97

-28.67

232,105,480

698.64

ULMA

83.50

0.00

70.00

88.00

6.91

5,255,632

438.85

UNIBEP

6.82

-1.02

6.38

10.30

-14.75

33,927,184

231.38

WARIMPEX

9.30

-5.58

7.64

10.89

13.83

54,000,000

502.20

ZUE

11.29

0.89

10.80

15.14

N/A

22,000,000

248.38

want it to satisfy the needs of 21st century city-dwellers,” said Roman Meysner, member of board and business unit manager at Vantage Development.

CFE Polska will serve as general contractor for Promenady Wroc∏awskie. Vantage Development is based in Wroc∏aw and owns WSE-listed real estate company Impel. In addition to Promenady Wroc∏awskie, Vantage Development is currently working on four projects in the Wroc∏aw area and is planning to invest in two more.

Katarzyna Piasecka

Television, internet and telecoms services provider UPC Polska has prolonged its lease agreement for 1,100 sqm of office and technical space in the University Business Center II office building in Warsaw. Colliers International represented the tenant in the transaction.

Opened in 2000, UBC II is located in the capital’s Mokotów district.The property offers almost 20,000 sqm of usable space on 12 floors.

Tenants include Hewlett-Packard, SSL-Healthcare and Samsung Electronics Polska.

New tenants at Rondo 1 Warsaw’s Rondo 1 office high-rise has three new tenants. MGPA Europe Fund II, the owner of the property, has leased a total of more than 700 sqm of mixed-use space in the complex to the Malayka Beauty Center spa, Home Broker real estate brokerage and Uni-tur travel agency. ●

18

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

JUNE 6-12, 2011

Office parks

SwedeCenter’s latest Warsaw project will deliver seven buildings totaling 90,000 sqm A cornerstone-laying ceremony was held last week at the construction site of the Business Garden office park in Warsaw’s W∏ochy district. The investment, which is located at the intersection of the capital’s ul. ˚wirki i Wigury and ul. 1 Sierpnia, is being developed by SwedeCenter, a company from the Inter IKEA group.

The first stage of the Business Garden scheme is scheduled for delivery in Q3 2012,

managing business space with respect for the natural environment,” said Roger Andersson, chairman of SwedeCenter.

The Business Garden complex will comprise seven buildings, the total space of which will extend to some 90,000 sqm. Apart from office space, the complex will also house retail-services areas, hotels and conference halls.

In the first phase of the investment, two buildings will be erected. The first will offer 14,600 sqm of office and retail space and will include 200 hotel rooms and a conference

and the whole investment by around 2015. The Warsaw development, whose general contractor is Hochtief Polska, forms part of SwedeCenter’s broader investment plan, which will involve the construction of sibling business parks in Poznaƒ and Wroc∏aw.

“We are extremely proud of the project and the principles related to Business Garden. We hope that all parts of the overall project – the first part in Warsaw and the remaining investments in Wroc∏aw and Poznaƒ – will establish a new current not only in construction but also in

center. The second facility will comprise 17,500 sqm of office space.

In addition, the investment calls for the construction of an underground parking lot for 1,500 cars, as well as overground parking spaces.

The project is being carried out in accordance with the principles of LEED certification. By implementing environmentally friendly solutions in Business Garden, the investor will be able to apply for a LEED Gold certificate.

Active in the commercial property sector, SwedeCenter has been present in the Polish

COURTESY OF SWEDECENTER

Business Garden cornerstone laid

Business Garden will be located in Warsaw’s W∏ochy district market since the early 1990s.

The company’s completed projects in the country include

N21 in Warsaw and Cracovia Business Center in Kraków.

Katarzyna Piasecka

COURTESY OF NEINVER

Neinver and PKP lay Nowe Centrum Katowic cornerstone

The investment’s total value is estimated at €240 million

Spanish developer Neinver and Polish State Railways (PKP) last week laid a cornerstone at the construction site of their Nowe Centrum Katowic multi-function project in Katowice, Silesia voivodship.

The ceremony was attended by a number of high-ranking guests, including Neinver Group founder and president Jose Maria Losantos y del Campo, board member of PKP Pawe∏ Olczyk, Katowice

Mayor Piotr Uszok and Spanish ambassador Francisco Fernandez Fabregas.

“Katowice is a city of changes, to which our investment has also contributed. We appreciate the potential of Katowice and promote it around Europe,” said Barbara Topolska, the general manager of Neinver Poland.

The Nowe Centrum Katowic scheme will involve the construction of a new Katowice railway station and

an underground bus depot, as well as the erection of a classA office building and the Galeria Katowicka shopping mall.

The Katowice development is one of the largest projects currently carried out by PKP in cooperation with a private investor. The total value of the investment is estimated at approximately €240 million.

Active in the Polish market since 2000, Neinver is known for projects including the Fac-

tory outlet center in Warsaw’s Ursus district and the Galeria Malta shopping and entertainment center in Poznaƒ.

Polish State Railways owns approximately 2,600 railway stations in Poland, of which 77 are expected to see reconstruction and modernization before 2012. Construction on most of these projects has already reached an advanced stage.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

JUNE 6-12, 2011

www.wbj.pl

CH Kowale commercialization

preservation activists, Budrem demolished the facility before authorities for the preservation of historic buildings were able to grant the building sufficient legal protection.

The investment will comprise a residential building with 142 apartments and a retail facility offering some 1,300 sqm of space.

Apartments in the Nowa Wileƒska scheme, which is scheduled for completion in Q1 2013, will be sized from 25 to 83 sqm and priced at z∏.7,000-7,900 per sqm. Most of the units will qualify for the government’s Family on its Own preferential mortgage

COURTESY OF PRESTIGE PR

Budrem launches controversial Warsaw project Ostrów Wielkopolski-based developer Budrem, to date mostly known for the construction of industrial and warehouse facilities across Poland, has launched work on its Nowa Wileƒska housing and retail project in Warsaw’s Praga Pó∏noc district.

Located between the capital’s Al. SolidarnoÊci and ul.

Wileƒska, close to the Warszawa Wileƒska railway station-shopping center complex, the scheme is being built on a plot which until 2009 housed a 150-year-old engine house for storing locomotives.

Despite vocal protests of

19

Nowa Wileƒska is scheduled for completion in Q1 2013 program for first-time home buyers.

The developer touts the Nowa Wileƒska investment’s

proximity to both downtown Warsaw and the cultural attractions of the Praga Pó∏noc district. It also says that the

project’s architecture will correspond with that of the historic neighborhood.

Katarzyna Piasecka

Real estate advisory Axi Immo will commercialize the Centrum Handlowe Kowale retail project in Gdaƒsk. Located on the city’s ul. Staropolska and scheduled to open in December next year, the scheme will be a convenience shopping center type project, offering approximately 4,700 sqm of GLA. “The commercialization of CH Kowale is a very important project for us,” said Renata Osiecka, managing partner at Axi Immo. She added that the company expects the development of convenience shopping centers to become one of the main trends in the Polish retail market. ●

Media patronage

PRCH Retail Horizons: retail re-focus As Poland’s shopping center market matures, malls will have to concentrate on what they can offer the customer Poland’s shopping center sector has come a long way in the last decade and a half. Today, opportunities exist with the expansion of shopping centers into secondary and tertiary cities, but as competition heats up, malls will have to become more customer-focused and innovative.

That was the conclusion many came to at the PRCH Retail Horizons Conference 2011, held in Warsaw last week and organized by the Polish Council of Shopping Centers.

Stephen Pragnell, a retail industry guru whose more than 20 years in the shopping center business

included time as general director of Apsys Polska, stressed the pace at which Poland’s retail market has developed. Fifteen years ago there wasn’t a modern shopping center in the country, while today some 360 such facilities exist, he said. He added that Poland now has some of the best shopping center developments in Europe.

Change ahead New opportunities lie ahead, especially as far as refurbishment of existing schemes and shopping center development in secondary and tertiary cities are concerned.

However, as the market develops and becomes increasingly competitive, Mr Pragnell underlined, proper-

ty owners and managers will have to focus more on the customers.

“Shopping is not the cherry on the cake, it is the cake,” he said, commenting on the fact that some of the market’s players have focused on aspects such as the quality of their malls’ architecture, but have not paid enough attention to whether their projects appeal to the right groups of customers and provide the right kind of shopping experience.

Meanwhile, new trends in the market should force the sector to innovate, he added. Elderly people are an increasingly important group of customers that malls will have to take into account. And the development of new social media provides

new promotional and sales opportunities.

Shopping slump?

Making the most of those opportunities will be essential, especially in light of recent PRCH turnover index data, which shows that Poles have been doing less shopping in the country’s malls of late. Experts point out that some of the malls developed in the country in the last few years have not been as successful as had been originally hoped.

Although this may have largely been due to general macroeconomic factors, the trend should nevertheless provide some food for thought for property owners and make them think of ways in which

they can counter it, said Anna Staniszewska, regional director Central and Eastern Europe, consulting and research, at DTZ Polska.

Not all recent research has brought pessimistic results. According to Jones Lang LaSalle, the Polish market will likely see new brands enter the country and the existing ones expand in the near future.

Brand penetration in many of the country’s provincial urban centers is still relatively low, noted Anna Bartoszewicz-Wnuk, associate director and head of research and consultancy at the firm.

Warsaw Business Journal was a media partner of the PRCH Retail Horizons Conference 2011.

BUSINESS COMMUNITY

JUNE 6-12, 2011

Chambers of Commerce Corner News Canadian MBA students visit Poland

COURTESY OF AMCHAM

www.wbj.pl

AmCham’s visit could lead to investments worth $10 million AmCham mission to the United States The American Chamber of Commerce in Poland (AmCham) recently completed a mission to the US, where its delegates met with companies that are looking to expand in Europe, and into Poland in particular.

Meetings were held in Dallas, Texas and Denver, Colorado.

The delegation met with 10 companies from sectors including business process outsourcing, IT, cosmetics, aviation and automotive. Some of the firms are already active in Poland while others are in the process of choosing a country to invest in.

“The general feedback was very positive. Companies expressed a lot of interest in Poland,” AmCham vice chairman Richard Lada said in a press release.

The mission, AmCham wrote, could lead to at least $10 million being invested into Poland over the next three to five years. Up to 1,000 jobs could be created as a result.

“Trade and investment doesn’t just happen, you need to go out and start the process with education, contacts and showing that you are yourself a believer in the Polish market and its potential,” AmCham board member Tony Housh said.

The Polish Information and Foreign Investment Agency and the Polish Ministry of Economy co-organized the mission.

On May 16 and 17, a group of 17 Executive MBA students from Canada’s Concordia University visited Poland. The trip was part of their program to explore the dynamic of global business development through visits to other regions of the world.

This was the first stop in a tour comprising Poland, the Czech Republic and Turkey. “The students chose Central and Eastern Europe over Asia or South America because of the strong potential and opportunities that they see in the region,” said Eileen Gricuk, executive director of the Polish Canadian Chamber of Commerce.

On this occasion, the PCCC organized a conference where the students had the opportunity to hear and meet with local government officials and businesspeople. The conference focused on how to establish and operate a successful business in Poland, with a special focus placed on the energy and infrastructure sectors.

The students also visited Rzeszów, where they toured the facilities of Pratt & Whitney and MTU Aero Engines Polska in Aviation Valley.

Poland beats BRI, but not China Of Brazil, Russia, India and China (the BRICs countries), only the latter conducted more trade with the UK than Poland did in the first quarter of this year. That’s according to the UK Office for National Statistics’ Monthly Review of External Trade Statistics.

Total bilateral trade between Poland and the UK amounted to €3.24 billion.

Although dwarfed by the €9.66 billion of trade with China, it was still higher than the UK’s bilateral trade with all the other BRICs countries.

The UK’s trade with India was valued at €2.66 billion, making India the secondmost important BRICs country for the UK in terms of trade. ● From the British Polish Chamber of Commerce

Upcoming events Canada Day Picnic The Polish Canadian Chamber of Commerce will hold a picnic to celebrate Canada's national day. The event is open to members, guests and their families.

Date: Sunday June 26 Please contact Eileen Gricuk at e.gricuk@pccc.pl for more details

Outsourcing event The Association of Business Service Leaders in Poland (ABSL), a leading organization in the modern business-service sector, and Roadshow Polska, one of the leading organizers of business conferences, will hold a joint conference this month. It will be the biggest outsourcing event held in Poland, and aims to

COURTESY OF WIKIMEDIA COMMONS

20

University College London

improve the country’s investment attractiveness in the business-service sector.

Date and location: June 17, at the Westin Hotel, Warsaw

International conference A conference entitled “Research without Frontiers: inter-university cooperation in East European area studies,” will take place at University College London. The event, which is organized by the Center for East European Language-Based Area Studies, aims to showcase the organization’s research excellence, collaboration and innovation around key strategic themes.

Date and location: June 22-23, at UCL Christopher Ingold Auditorium, London

THE LIST

JUNE 6-12, 2011

www.wbj.pl

21

Construction and Real Estate

Major Warehouse Developments in Poland

Space rented

Included in price

Charged seperately

317,762 92,404 8,227 22,330

50.0%

Class-A warehouse

Depending on the customer’s wishes

5%

WND

www.mlp.pl

302,000 WND WND WND

3

ProLogis Park Chorzów ul. Niedêwiedziniec 10 Chorzów Batory www.prologis.com; www.prologiseurope.com

232,000 232,000 -

68%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

4

Skalski Logistic Park ul. Wroc∏awska 36 Wojtkowice /near Wroc∏aw, 55-200 ˚urawina www.skalski.com.pl

200,000 200,000 WND WND

>70%

192,461 59,845 WND 3,358

64%

Class-A warehouse

190,500 190,500 WND WND

90%

www.europolisparks.com

176,000 153,700 13,600 8,700

8

Panattoni Park Poznaƒ I ul. Magazynowa 3; 4; 5A , 62-023 Gàdki/ near Poznaƒ www.panattoni.com

9

www.bookoflists.pl

Amenities and equipment 24-hour security

Rank

Total rentable space (sqm) / Rentable space (sqm): Warehouse space / Refrigerated space / Warehouse offices

Ranked by total rentable space

Year completed

Maximum storage height (m)

✓

2008

10.0

On demand (airconditioning; cooling systems; special ventilate systems); built-to-suit

✓

2006-2008

10.5

WND

marketing@ml.pl; 22 738-3010

WND

24h security; facility management; utilities; ISDN

✓

2006-2009

11.0

ArchiDoc; FM Polska; Hellmann Worldwide Logistics; Moto-Profil; Danone; Kuehne&Nagel; ALDI; Raben

Micha∏ Czarnecki: mczarnecki@prologis.com; 601-447-966

ProLogis: info-pl@prologis.com; 22 218-3600; 22 218-3601

✓

2008

10.3

Piotr Roczniak; Azipiaran Polska; Igepa; Pantos Logistics Poland; M&M Militzer & Munch Polska; A-T-S piotr.roczniak@skalski.com.pl; 694-478-036

Depending on the customer’s wishes

✓

2009

10.0

Piotr Bzowski; Piotr Bzowski; ND Polska; Transpol Cl; PF Concept/ PF Logo piotr.bzowski@pointparkprope piotr.bzowski@pointparkprope Express rties.com; 664-413-308 rties.com; 664-413-308

Class-A buildings; column grid 12m x 25m; the floor load capacity - 5T/m2; ESFR sprinkler system; gas heating; light intensity; skylights and smoke flaps in accordance with Polish law and the requirements of the customer; door and unloading ramp with seals

WND

✓

2008/2009

10.0

PartnerTech; Rohlig; Coca-Cola HBC; Intermarche; Magneti Marelli; DPD; Manuli Hydraulics; CAT

Patrycja Polaƒska; ppolanska@panattoni.com; 32 609-0870

Panattoni Europe: plinfo@panattoni.com; 22 540-7171

WND

WND

WND

✓

1998 - 2010

10.0

WND

Europolis: Agata Wo∏os; a.wolos@europolis.com; 600-762-371

Europolis: Agata Wo∏os; a.wolos@europolis.com; 600-762-371

171,300 171,300 WND WND

95%

Class-A buildings; column grid 12m x 25m; the floor load capacity - 5T/m2; ESFR sprinkler system; gas heating; light intensity; skylights and smoke flaps in accordance with Polish law and the requirements of the customer; door and unloading ramp with seals

WND

✓

2008/2009

10.0

H&M; Piotr i Pawe∏; Gefco; Neuca; Dachser; NAVO; OST Sped; Hendi

Maciej Stacha; mstacha@panattoni.com; 667-900-226

Panattoni Europe; euinfo@panattoni.com; 22 540-7171

ProLogis Park Wroc∏aw ul. Magazynowa 1-8 Kobierzyce, Bielany Wroc∏awskie www.prologis.com; www.prologiseurope.com

167,850 167,850 -

95%

ESFR sprinkler system; parking lot; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

✓

2005-2007

10.0

Black Red White; Carlsberg; ET Eurotermina; Healthy Food Production; Hi-P; Kurier; Volvo; Wincanton

Ewa Zawadzka; ezawadzka@prologis.com; 692-436-714

ProLogis; info-pl@prologis.com; 22 218-3600

MLP Pruszków I

166,000 136,616 WND 15,793

93%

WND

On demand (airconditioning; cooling systems; special ventilate systems); built-to-suit

✓

2000-2009

10.5

WND

marketing@ml.pl; 22 738-3010

WND

165,000 130,000 30,500 -

95%

WND

WND

✓

2000

10.5

Warehouse name Address Web page

Pointpark Mszczonów 1 Mszczonów/ near Warsaw

www.poitnparkproperties.com MLP Pruszków II 2 ul. 3 Maja 8 Pruszków

Pointpark Poznaƒ 5 Gàdki/ near Poznaƒ

www.poitnparkproperties.com Panattoni Park Mys∏owice 6 ul. Kosztowska 21 Mys∏owice

www.panattonieurope.com Europoils Park B∏onie 7 Pass, 05-870 B∏onie

10 ul. 3 Maja 8 Pruszków

www.mlp.pl Kuehne + Nagel Sp. z o.o.

11 ul. Spedycyjna 1, 62-023 Gàdki

www.kuehne-nagel.pl

Docks; gates level 0; 5T.m2 floor; lighting; heating; Air-conditioning; crane; sprinkler system; smoke extraction; fire alarm system; racks; refrigerators; carport gas detection; mechanical ventilation; emergency square lighting

Selected clients

Contact person: Tel./Fax, e-mail

Owner

Piotr Bzowski; Piotr Bzowski; Fiege; Damco; Mondi Warszawa; JMD; FM piotr.bzowski@pointparkpropr piotr.bzowski@pointparkprope ties.com; 664-413-308 rties.com; 664-413-308

S∏awomir Be∏kiewicz; Unliever; Carrefour; Danone; R.Bosch; TEVA Kutno/PLIVA Kraków; Philips Morris; Fuji Film slawomir.belkiewicz@kuehnenagel.com; 694-481-254

SLP Wroc∏aw

Kuehne+Nagel

12

Tulipan Park Stryków ul. Warszawska - Smolice 1, 95-010 Stryków www.segro.com

163,313 151,360 11,953

92%

Depending on the customer’s wishes

Depending on the customer’s wishes

✓

2006-2008

10.0

WND

Anna ¸askarzewska; anna.laskarzewska@segro.com

Segro Poland

13

ProLogis Park Teresin Al. 20-Lecia 23A-E, 96-515 Teresin www.prologis.com; www.prologiseurope.com

159,108 159,108 -

75%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

✓

2000-2005

10.0

DHL; Rhenus Contract Logistics; Viva Manufacturing; International Automotive Comp; Schenker; TCL Operations

Wojciech Kosiór: wkosior@prologis.com; 602-650-300

ProLogis: info-pl@prologis.com; 22 218-3600; 22 218-3601

14

ProLogis Park B∏onie Kopytów 44A, 05-870 B∏onie www.prologis.com; www.prologiseurope.com

159,106 159,106 -

51%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

✓

1999-2008

10.0

Bertelsmann; Interchem; Iron Mountain; Mercedes-Benz; New Idea Mebel; PPG Deco; Tradis; Wincanton

Wojciech Kosiór: wkosior@prologis.com; 602-650-300

ProLogis: info-pl@prologis.com; 22 218-3600; 22 218-3601

Panattoni Park ¸ódê East

60%

Class-A buildings; column grid 12m x 25m; the floor load capacity - 5T/m2; ESFR sprinkler system; gas heating; light intensity; skylights and smoke flaps in accordance with Polish law and the requirements of the customer; door and unloading ramp with seals

WND

✓

2008/2010

10.0

www.panattonieurope.com

157,000 157,000 -

TVAB; Compal Electronics; RR Donnelley; Lekkerland; Schenker; DSV; Flextronics; Wincanton

Marek Dobrzycki; mdobrzycki@panattoni.com; 503-050-800

Panattoni Europe; plinfo@panattoni.com; 22 540-7171

16

ProLogis Park Dàbrowa ul. Roêdziejskiego 12, 41-303 Dàbrowa Górnicza www.prologis.com; www.prologiseurope.com

144,000 144,000 -

70%

ESFR sprinkler system; parking lot; corporate logo on the building; automatic door and loading ramps; maneuverable areas

24h security; facility management; utilities; ISDN

✓

2004-2007

10.0

Abra; DHL; Fiege; JAS FBG; Kamis; Magna Automotive; Sostmeier; Valeo Autosystemy; Rhenus Contract Logistics

Micha∏ Czarnecki: mczarnecki@prologis.com; 601-447-966

ProLogis: info-pl@prologis.com; 22 218-3600; 22 218-3601

17

ProLogis Park Wroc∏aw III ul. Graniczna 8A-8E Wroc∏aw, Muchobór area www.prologis.com; www.prologiseurope.com

129,917 129,917 -

100%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

✓

2005-2008

10.0

FagorMastercook

Ewa Zawadzka: ezawadzka@prologis.com; 692-436-714

ProLogis: info-pl@prologis.com; 22 218-3600; 22 218-3601

18

ProLogis Park Poznaƒ II ul. Za Motelem 2A-E, 62-080 Tarnowo Podgórne www.prologis.com; www.prologiseurope.com

120,700 120,700 -

96%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

✓

2005-2007

10.0

DHL; DVS Solutions; Flexlink; Green Integrated Dariusz Proniewicz: Logistics; IBP Group; Neuca; Univeg Logistics; dproniewicz@prologis.com; Wincanton 601-446-366

ProLogis: info-pl@prologis.com; 22 218-3600; 22 218-3601

19

Tulipan Park Gliwice Al. Jana Nowaka Jezioraƒskiego 39, 44-164 Gliwice; Kleszczów/ near Gliwice www.segro.com

115,853 115,133 3,625 6,842

96%

Depending on the customer’s wishes

Depending on the customer’s wishes

✓

2008-2009

10.0

WND

Joanna Janiszewska: joanna.janiszewska@segro.com

Segro Poland

20

Tulipan Park Poznaƒ ul. Szkolna 30; ul. Ks. Wawrzyniaka 2, 62-052 Plewiska/ near Poznaƒ; Komorniki/ near Poznaƒ; www.segro.com

112,531 99,300 2,700 10,531

94%

Depending on the customer’s wishes

Depending on the customer’s wishes

✓

2007-2009

10.0

WND

Anna ¸askarzewska; anna.laskarzewska@segro.com

Segro Poland

15 ul. Zak∏adowa 97/97B, 92-402 ¸ódê

Notes: Notes: WND = Would Not Disclose. Research for the List was done in November 2010.

Number of employees and ownership structure are as of October 2010 unless stated otherwise.

All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

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. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

ARTS & CULTURE

Exhibition

Concert

Mexico’s changing faces

Starr attraction

A photography exhibition focusing on the changing identity of Mexico and its people is taking place at the Cervantes Institute this month. The exhibition will present the work of 25 Mexican artists from different generations, with photos

Ringo Starr Sala Kongresowa, PKiN Pl. Defilad1 June 15, 7 pm

COURTESY OF CERVANTES INSTITUTE

Faces of Mexico.

25 modern day Mexican photographers Cervantes Institute, ul. Nowogrodzka 22 June 7-16

arranged around a diverse group of themes present in contemporary Mexican pho-

tography. ● For more information log on to www.varsovia.cervantes.es

the many faces of art design.

“Pop-up shops” will familiarize passers-by with current artistic trends in design and this will be accompanied by photographic displays, workshops, panel discussions, film

screenings and other events, with artists, scientists, journalists and visitors able to jointly discuss how this private reality is arranged. ● For more information, log on to www.sasiedzi20.com

Ballet premiere

Spring in their steps Le Sacre du Printemps Teatr Wielki-Opera Narodowa, Pl. Teatralny 1 June 11, 7 pm The Polish National Ballet and the Orchestra of the Polish National Opera will perform

born musician’s own solo albums. ● For more information log on to www.kongresowa.pl

Don’t worry in Warsaw

Art on the street As part of the Neighbours 2.0 Festival, ul. Mokotowska will be temporarily transformed into an exhibition illustrating

most famous rock ‘n’ roll group ever, Ringo and his All Starr Band will be playing the Beatle’s greatest hits along with songs from the Liverpool-

Concert

Exhibition Projektowanie w Dzia∏aniu ul. Mokotowska June 9-19

The man behind the Beatle’s beats, former Fab Four drummer Ringo Starr, will be performing in Poland this June.

One of only two surviving members from arguably the

JUNE 6-12, 2011

COURTESY OF MAKROCONCERT

www.wbj.pl

“The Rite of Spring” to music

by Igor Stravinsky, one of the 20th century’s greatest composers. In this new version, original choreography by the iconic Polish/Russian dancer Vaslav Nijinsky has been reinterpreted

by Millicent Hodson. The premiere will be held on the eve of the 100th anniversary of this landmark production. ● For more information, log on to www.teatrwielki.pl

Get an Insider’s glimpse at all that Warsaw has to offer with the Warsaw Insider!

Bobby McFerrin Sala Kongresowa, PKiN Pl. Defilad 1 June 16, 8 pm Bobby McFerrin, 10-time Grammy winner and writer of “Don’t Worry Be Happy,” will bring his unique talents to Warsaw this month. Famed for his improvisation, vocal invention, and four-octave voice, McFerrin’s concerts are also renowned for their positive atmosphere and audience par-

ticipation. The evening will showcase a variety of musical styles including classical, jazz

and world music. ● For more information log on to www.kongresowa.pl

COURTESY OF WIKIMEDIA COMMONS/SZANISZLO IVOR

22

Concert

Hollywood soundtrack The Great Concert of Film Music Sala Kongresowa, PKiN, Pl. Defilad 1 June 12, 7 pm The Polish Radio Orchestra will play Hollywood’s most famous classical tunes

including musical masterpieces from “Jaws,” “Star Wars” and “Jurassic Park” by famed composer John Williams. Iconic music from other movie blockbusters including “Forrest Gump”, “Superman” and “Titanic”

will also be performed under the direction of Maciej Sztor. Tickets for the event are priced from z∏.60 to z∏.180. ● For more information log on to www.kongresowa.pl

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu

Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t :

Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl

• top shopping reviews and listings • monthly calendar of parties, eventss and exhibitions • latest art, design, fashion and beauty trends • hotel, spa and fitness club reviews • up-to-the-minute resto, bar, cafe and club reviews

Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl

Subscribe to the Insider! Contact t t kwilinski@valkea.com k ili ki lk

Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

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

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

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

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

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

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

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

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

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

LAST WORD

JUNE 6-12, 2011

www.wbj.pl

23

Tech Eye

ized grills or newfangled fishing poles.

Not gonna happen. Instead, we present an entirely random collection of all-weather stuff, like Al Farrow’s “Bombed Mosque” sculpture (www.alfarrow.com).

OK, the “Bombed Mosque” probably deserves a bit of sober consideration. Like the other works in Mr Farrow’s Reliquary collection, this is one built mainly from munitions and other bits of armament – “guns, gun parts, bullets and steel” to be precise.

A few of his more macabre works incorporate fragments of skull.

Since Al Farrow is a genuine artiste, it’s hard to get a good estimate on what his pieces are selling for. But we’re guessing the “Bombed Mosque” will set you back more than an actual Kalashnikov would.

ball. Whatever you do with it, the Yeti Pro will cost you around $249 (www.bluemic.com).

Then there’s the Padfone from Asus (www.asus.com), which takes today’s biggest consumer electronics trends – smartphones and tablet computers – and smooshes them together into one product.

A good idea? Presumably somebody over at Asus thinks so, but Techeye’s not so sure. For one thing, the tablet half of the equation

seems to be little more than a glorified touchscreen monitor for the phone (Asus apparently intends for some tablet-specific functionality of some kind, but it’s all hush-hush for now). There’s also the question of how much weight the docked phone will add.

Asus currently plans to bring the Padfone out this Christmas. Techeye’s betting the design will be consigned to the dustbin of history by Christmas 2012. ●

Another gadget which doesn’t exactly scream “summer” is Blue Microphones’ Yeti Pro USB microphone (though it’s perfect if you just want to record yourself screaming). Among the Yeti Pro’s many merits, its maker lists 24 bit/192 kHz digital recording resolution, three custom condenser capsules (three more than Techeye would know what to do with) and four different pattern settings.

Best of all, it looks like the kind of thing a cynical journalist could use to deliver a damning report on fat people who like to wear superhero costumes (titled “Making Fun of the Handicapped” perhaps). That’s just one suggestion, of course; you could probably also use it to record the sound of poking yourself in the eyeEver wondered what a poke in the eye really sounds like? Let us know: techeye@wbj.pl

COURTESY OF AL FARROW

COURTESY OF BLUE MICROPHONES

With summer just around the corner, Techeye is as giddy as a schoolboy trapped in an elevator with a dominatrix in a panda costume. A pink panda costume, no less.

It’s going to be a good summer, you see. We’re going to take the family to the seaside, then we’ll leave the family at the seaside and spend a week at home alone, during which time we won’t change underwear even once and we’ll eat cheese and drink beer every night. Later, when our family returns home, there will be festive barbecues, much consumption of ice cream and the occasional leg waxing. Let the good times roll.

Given that love-drenched shoutout to summer, you’d probably expect the rest of this column to focus on warmweather gadgets like computer-

COURTESY OF ASUS

Summertech: sculptures, smartphones and microphones?

The amazing atmosphere, unusual flavors and unique location is what defines this restaurant !

Nowa La Boheme Restaurant at the National Theatre is an elegant place for business lunch, a prestigious gathering of friends or an intimate dinner for two.

For all further information regarding the brand New Fusion Spring/Summer menu as well as garden specials, please visit www.laboheme.pl or facebook www.facebook.com/nowalaboheme

Enjoy the mouthwatering tastes of the new exquisite menu at affordable prices !

NOWA LA BOHEME

Plac Teatralny 3, 00-077 Warszawa

Dział sprzedaży +48 (22) 8268275 / Restauracja +48 (22) 9620681

www.laboheme.com.pl

www.facebook.com/NowaLaBoheme