WBJ #5 2012

A US museum finds the first-ever recording of Chopin’s music

Exxon’s shale gas exploration results have disappointed

Original photos and analysis of the US Republican primaries

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WWW.WBJ.PL

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VOLUME 17, NUMBER 5 • FEBRUARY 6-12, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Defused?

COURTESY OF KOSTRZEWA PR

Lokale Immobilia

Poland compromised on the EU’s fiscal pact, even though it looks unlikely to avert a looming economic crisis

• Offices in Wola • Orco interview • Investment prospects 16-18

11, 12-13

COURTESY OF TADEUSZ MAZOWIECKI

Interview: Tadeusz Mazowiecki

Since 1994 . Poland’s only business weekly in English

The former Polish prime minister offers his “realistic” view of European integration 8-9

Deathly cold

In this issue

The recent freezing temperatures in Poland have turned lethal 3

¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 International . . . . . . . . . . . . . . . .8-9 Finance & Economics . . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Interview . . . . . . . . . . . . . . . . . .14-15 Lokale Immobilia . . . . . . . . . . .16-18 Markets . . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Apocalypse 2012?

A government agency believes catastrophe is “almost certain” to occur at Euro 2012 4

NEWS

www.wbj.pl

Crisis sparks Russian interest The worse the crisis in the euro zone becomes, the more Russian investors will be interested in spending money in Poland, according to the Centre for Business Cooperation “PolandRussia” (CWB). “[The Polish] market is the ideal starting point for further expansion in Europe,” Aleksandr ¸apszyn from CWB told Dziennik Gazeta Prawna. “Trouble for Western investors is the perfect time for the Russians to enter the Vistula [region],” he added. ●

Poland’s ratification of ACTA

Prime Minister Donald Tusk

Polish Prime Minister Donald Tusk announced last Friday that he had suspended the domestic ratification process for the Anti-Counterfeiting Trade Agreement (ACTA) treaty.

Supporters of the agreement argue that the adoption of ACTA will ensure an international standard for intellectual property rights. Opponents argue, however, that the treaty will pose a threat to the freedom of speech and expression,

particularly on the internet.

Mr Tusk said at a press conference that the ratification process was being suspended because a thorough analysis was needed before the ACTA agreement becomes part of Polish law. He admitted that the level of analysis conducted

by Poland so far had not been sufficient.

“Consultations about ACTA were incomplete. I am mad at my co-workers,” Mr Tusk said, adding that he him-

z∏.629 billion

self had put a lot of effort into ensuring that the question of freedom on the internet would be the subject of constant dialogue.

Mr Tusk stressed that he had studied the documents relating to ACTA very thoroughly, listened to the advice of Minister of Culture Bogdan Zdrojewski, as well as that of Minister of Administration and Digitization Micha∏ Boni, and ultimately said he shares the opinion of “those who from the start said that the consultations were incomplete.”

Though Mr Tusk said that he did not want Poland to ruin its reputation as a country that fights against intellectual property piracy, he said that if the result of future consultations show there is a risk to the privacy of internet users, then he would not rule out rejecting the ACTA agreement altogether.

ACTA has stirred up a significant amount of controversy in Poland. There have been several outdoor demonstrations throughout the country, together with the hacking of a number of government websites in protest against the Polish government’s decision to sign the agreement. Most other EU member states also signed the treaty.

Mr Tusk said the ratification process will not be renewed until the end of 2012.

is the forecast value of Polish exports in 2012, according to estimates from the Export Credit Insurance Corporation.

55.4% is the percentage of Poles who are active internet users. New data suggests the number of internet users is growing rapidly for all age groups apart from those over the age of 60.

z∏.105.1 billion is the amount of debt Poland will take on in 2012, according to the Ministry of Finance.

226,000 is how many Poles with university degrees were registered as unemployed at the end of December 2011, according to the latest data from the Ministry of Labor and Social Policy.

Quote of the Week “I am mad at my co-workers.”

Prime Minister Donald Tusk at a press conference expressing his anger at the way officials in his government handled the ACTA affair.

Figures in focus Heart of the matter Major causes of death in Poland for 65+ years, standardized death rate per 100,000 inhabitants, 2009 700 600

Izabela Depczyk

500 400

On WBJ.pl

300 200

Queen of poetry

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Wis∏awa Szymborska, Poland’s only female laureate of the Nobel Prize in literature, passed away last week. Described by family, friends and fans as a woman of great talent, modesty, and tolerance, WBJ.pl takes you through her life’s greatest achievements, and presents excerpts of her poetry.

rov a

According to the latest TNS OBOP survey, 63% of Poles had a negative opinion of the government’s performance in January. That’s up from a negative rating of 60% in December.

Meanwhile, 57% of respondents disapproved of Prime Minister Donald Tusk’s work, up from 51% a month earlier. While only 30% and 35% of people polled said they held a positive opinion on the government and Mr Tusk’s performance, respectively, 57% approved of President Bronis∏aw Komorowski’s performance.

Numbers in the News

Ce reb

Government ratings down in January

IN THE SPOTLIGHT

ha em ic h

Wis∏awa Szymborska, the Polish poet who won the 1996 Nobel Prize for Literature, died at her home in Kraków last Wednesday, at the age of 88. When awarding Ms Szymborska the literature prize, the Nobel award committee referred to her as the “Mozart of poetry,” a woman who mixed the elegance of language with “the fury of Beethoven” and tackled serious subjects with humor. In 2011, President Bronis∏aw Komorowski honored Ms Szymborska with Poland’s highest distinction, The Order of the White Eagle, in recognition of her contribution to her country’s culture.

FEBRUARY 6-12, 2012

Isc

Polish Nobel poet dies

COURTESY OF FLICKR/KANCELARIA PREMIERA

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Source: Eurostat

Company index

DATELINE

February 7

BRITISH-POLISH PPP FORUM

Event:

Entitled “Wroc∏aw for partnership – experience, plans and prospects for cooperation” this event will feature several discussion panels on public-private partnership in Poland and around the world. Hosted by economist Robert Gwiazdowski.

Hala Stulecia, Wroc∏aw ppp.gov.pl

Location: Web:

7 Event:

Location:

Web:

Location:

Web:

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SHOPPING CENTER BUSINESS FORUM

BNK Petroleum ........................................5

Nordea ....................................................16

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

Orco Property Group ..............................18

CASA Management

Orlen ..................................................5, 12

and Consulting ........................................9

Peter Nielsen & Partners........................6

Event:

An auction of works by young and wellknown artists including some “interesting debuts,” according to organizers.

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

More than 70 unique items from past eras, among them rings with diamonds and “timeless art deco jewelry,” say organizers.

DESA Unicum,

Ladoga ....................................................23

Banco Santander ....................................5

Web:

Event:

Kredyt Bank............................................16

ul. Marsza∏kowska 34-50, Warsaw desa.pl

Location:

JEWELRY AUCTION

KGHM........................................................5

AEGON ....................................................16 Apsys ......................................................17

YOUNG ART AUCTION

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A-Mea Informatik ....................................9

Now in its 14th edition, this event is an opportunity to meet tenants and developers of commercial real estate. The organizer provides access to web-based business appointments between participants.

Hilton Warsaw Hotel scbf2012.retailnet.pl

16

PRCH MIXER

Event:

Exchange business experiences and contacts with representatives of 190 companies of the Polish Council of Shopping Centres (retailers, investors, developers, operators, industry consultants, etc.). Registration is required.

Warsaw prch.org.pl

Location: Web:

Bank Millennium......................................5 Bank Zachodni WBK ................................5

CBRE ......................................................16 Citi Handlowy..........................................10 Citibank International ............................16 Colliers International ......................16, 17

Lot ............................................................5 Lotos ......................................................12

PGE ........................................................12 PGNiG ......................................................6 Pradera Europe ......................................17

Comarch ..................................................9

PwC ........................................................17

Cushman & Wakefield ..........................16

Ronson....................................................18

Econgas ....................................................6

Ryanair......................................................6

Export Credit Insurance Corporation......2

Sberbank ..................................................9

Exxon Mobil ..............................................5 Gazprom ..................................................6 GdF Suez ..................................................6

Singerie Italiane ......................................6 Skanska ..................................................16

GE Capital Real Estate ..........................17

SPP ..........................................................6

Goldman Sachs ........................................5

Warsaw Stock Exchange....................9, 18

Griffin Group ..........................................17

Warta Life ..............................................16

Inpro........................................................18

Wingas ......................................................6

Intergraph ..............................................16 IVG Development ....................................17 Jones Lang LaSalle................................17 JSW ........................................................13

Wizz Air ....................................................6 X-Trade Brokers Dom Maklerski ......................................19

NEWS

FEBRUARY 6-12, 2012

www.wbj.pl

Winter deep freeze

Cold snap strikes Poland, killing 43 As WBJ went to press, plummeting temperatures across Poland had lead to the deaths of a reported 43 people since the cold snap afflicting much of Eastern Europe struck in late January.

The Interior Ministry announced in a statement that many in Poland had also been poisoned by carbon monoxide due to old or faulty heaters, with several people dying as a result. Since November 2011, the cold has killed 75 people in total.

Temperatures dropped to below -30 Celsius in some parts of Poland last week, with many who were sleeping in the open suffering from hypothermia as a result.

Local authorities lit braziers in public places to provide warmth for those in the open, while the Interior Ministry asked people to contact the

emergency services if they saw others stuck in life-threatening situations. Emergency services can be reached at 112 or 997.

Officials have established indoor areas where the homeless can stay for the night and receive a hot meal.

The Interior Ministry also said that those with gas cook-

“Since November 2011, the cold has killed 75 people in Poland” ers or heaters should make sure the equipment is functioning properly and that it is used correctly, in order to avoid further deaths from carbon monoxide poisoning.

The cold snap currently affecting Poland is part of a continental weather front from Siberia that has affected most of Eastern Europe, reportedly claiming the lives of more than 250 people since it began.

Over 100 of those victims

The recent cold weather has so far claimed 250 lives in Eastern Europe conditions such as frostbite and hypothermia.

Demand for gas has also shot up across the region, with Poland’s state-owned natural-

died in Ukraine, with 64 found dead on the streets, local authorities reported. Hundreds more are in hospital being treated for cold-related

gas pipeline operator Gaz-System reporting record-high demand of 70.3 million cubic meters last Thursday.

Gareth Price

Murder

Polish general stabbed to death by own son General Henryk Szumski, a former chief of general staff of the Polish army, was stabbed to death last week by his own son, at his home in a suburb of Warsaw.

Krzysztof S., whose full name cannot be revealed in accordance with Polish law, has admitted murdering his father, and is currently being

told WBJ. Mr Romaniuk said that for now it seems that Krzysztof S. did not have a motive. “He is just very, very sick,” he added.

Krzysztof S., who is known to have a history of mental illness, is currently being assessed by doctors in a psychiatric hospital.

General Szumski was chief of general staff from 1997 to 2000 and oversaw Poland’s accession to NATO.

questioned by police as to the circumstances surrounding the tragedy. The deceased’s wife, who is also the mother of the suspect, was present during the incident.

“His parents have not seen him for a very long time, they had lost contact with him, and were certainly not expecting him that night, since he lived in France. He just walked in, stabbed his father, and then patiently, and indifferently, waited for the police to come,” Prosecutor Piotr Romaniuk

Izabela Depczyk, Remi Adekoya

Gen. Szumski oversaw Poland’s accession to NATO

Tragic revelations in baby Magda saga baby Magda, after the child’s mother admitted to leaving her body under a tree.

COURTESY OF THE KATOWICE POLICE

As WBJ went to press, Polish police were still searching for the remains of six-month-old

Baby Magda’s mother admitted to dropping her, and panicking when it became clear she wasn’t breathing

The recent strengthening of the z∏oty on the back of improved market sentiment is likely to “alleviate” concern about inflation this year, Marek Belka, the head of the National Bank of Poland, told Bloomberg during the World Economic Forum in Davos, Switzerland. Mr Belka also commented on the current strength of the z∏oty, which rose to z∏.4.23 against the euro since falling to z∏.4.56 in December. “The exchange rate of late 2011 was artificially weak, now it is coming back to where it belongs,” Mr Belka said.

Magda’s story had gripped the nation at the end of January and beginning of February, after it was originally reported that she had been kidnapped. Magda’s mother was found with wounds to her head and unconscious, along with an empty stroller, on a sidewalk on January 24. At that time she claimed that she had been attacked, and that her assailant had taken the baby.

A nationwide search was initiated, with police calling for potential witnesses to come forth with information.

However, on the evening of February 2, Magda’s mother admitted to a private detective that the baby had slipped

Finance Minister Jacek Rostowski has denied that Poland expects to adopt the common European currency in 2015. The comment followed a statement by European Parliament President Martin Schulz that Warsaw was planning to replace the z∏oty in three years’ time.

“We don’t have such plans,” Rostowski later told reporters.

US to lift visa requirements?

REPORTER

Prosecutors say there was no motive and that the suspect is “very, very sick”

Z∏oty strengthens

Poland won’t adopt euro in 2015

SHUTTERSTOCK

The victims were mainly homeless people who were not able to get to a shelter in time

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from her hands, and hit her head during the fall. When it became clear that Magda wasn’t breathing, the mother panicked, and disposed of the body in the woods.

Police searched the site where the mother admitted to leaving her, but were unable to find the body. They had called in sniffer dogs to aid in the search.

On Friday Magda’s mother was said to be in too distressed a state to be interrogated by police. It was believed that her husband, baby Magda’s father, knew nothing of the mother’s actions, and had honestly believed the baby had been kidnapped.

Andrew Kureth

US Senators Barbara Mikulski from Maryland and Mark Kirk from Illinois have submitted a proposal to Congress concerning Polish visas.

The proposal aims to speed up the current process for Poles wishing to travel to the US and, if passed, would also make it possible for Poland to finally achieve visa-free travel to the US. ●

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NEWS

www.wbj.pl

Euro 2012

FEBRUARY 6-12, 2012

Fryderyk Chopin

First Chopin music recording Poland weighs chances of catastrophe during Euro 2012 released by US museum An airplane disaster is more than 60 percent likely to occur during the championship, according to a government agency report

Digital technology has allowed several important historical recordings to be brought back to life

therlands – meaning a heavy fan presence is expected.

Acts of terrorism, chemical contamination, communication systems failures, construction disasters and radiation contamination are said to have a “50 to 60 percent chance” of occurring.

Crisis-response during the tournament will be managed by a chain of command headed by Minister of Sport Joanna Mucha and supported by other ministers.

The crisis-response system will comprise a total of three separate bodies which, according to experts at RCB, is likely to lead to chaos.

Experts are also worried about the expected retirement of many high-ranking police officers from the Warsaw city police before the tournament, voicing concerns that this could create a dearth of experience for dealing with rioting fans.

The Thomas Edison National Historical Park museum in the US has released what is thought to be the first-ever recording of music made by Polish-born composer Fryderyk Chopin.

In 1957, 17 wax cylinders containing a recording of Chopin’s Piano Concerto No. 2 in F minor, voice recordings of German Chancellor Otto von Bismarck, and recordings of other famous Europeans, were discovered in an unlabeled box in American engineer Thomas Edison’s laboratory in the US state of New Jersey.

The National Stadium will host Euro 2012’s first match on June 8

The recordings have now been fully restored using digital technology and were released recently by the Thomas Edison National Historical Park museum.

The Otto Von Bismarck Foundation in Germany had believed the recordings to be lost and described their release as “sensational.”

According to the Thomas Edison museum, in the summer of 1889, Thomas Edison sent a technician to present his new invention – the phonograph – at the Paris Exposition. Mr Wangemann then toured Europe to promote the device, using it to record the luminaries as he went.

On one occasion, the technician invited instrumentalists, vocalists and music lovers to a performance in Cologne featuring Otto Neitzel, who

played Chopin’s Piano Concerto No. 2 in F minor at the event. Edison’s technician recorded the piece, which is the one made audible by the Thomas Edison museum technicians.

In the 1870s, Otto Nitzel took lessons from Franz Liszt, who is thought to be a former pupil of Frederyk Chopin.

“For Chopinists trying to get closer to the style of Chopin, what is more important is not how old something is, but rather the environment in which the pianist grew up,” said Arkadiusz Roszkowski, assistant curator at the Warsaw’s Chopin Museum, referring to the information that could be gleaned from listening to someone who had learned from one of Chopin’s pupils.

Veronika Joy

Poland’s chief military prosecutor dismissed by president

Gareth Price

COURTESY OF WIKIMEDIA COMMONS

Last week’s inauguration of the National Stadium in Warsaw with a concert and fireworks display was a major organizational success, but in the same week that thousands flocked to the ground to celebrate, a government report was released showing how alarmingly high the probability of catastrophe is during the Euro 2012 soccer championship.

The opening match of the tournament will be held on June 8 at the 58,000-capacity National Stadium, which will also host several other games during the three-week event.

But while huge crowds celebrated at the ground’s official opening in freezing tempera-

tures, the Government Centre for Security’s (RCB) chilling report suggests that tragedy is likely to strike during Euro 2012 – with a high probability of crises such as riots, fires and floods occurring during the tournament.

The RCB, whose report was cited by Dziennik Gazeta Prawna, considers flooding 70 percent likely to happen during the event. Road accidents, fires, riots among fans and even airplane disasters are all thought to be between 60-70 percent likely to happen. Anything above the 60 percent mark, the report says, means the scenario in question is “almost certain” to occur.

Due to the number of fans who will be present there, riots are considered highly likely in Kraków and Warsaw, according to the report. The former city will not be hosting any games but will accommodate three national teams – England, Italy and the Ne-

Polish President Bronis∏aw Komorowski has decided to dismiss chief military prosecutor General Krzysztof Parulski, following the latter’s criticism of the civilian prosecutor’s office.

General Parulski was the immediate superior of Colonel Miko∏aj Przyby∏, the military official who, in an attempt to take his own life, shot himself through the cheek during a break in a press conference in early January.

General Parulski said the civilian prosecutor’s office had acted “unethically” dur-

ing its investigation into military prosecutors’ attempts to obtain journalists’ phone records. The pressure of the investigation into these attempts is believed to be one of the reasons behind Colonel Przyby∏’s suicide attempt.

President Komorowski’s decision to replace Mr Parulski nevertheless comes as a surprise, since he had previously said that changing the laws governing the military prosecutor’s office was more important than replacing the personnel within it. The president had also said that replacing Mr Parulski could lead to fur-

ther destabilization of the military prosecutor’s office.

The problems for the military prosecutor’s office began when three Polish journalists accused officials from the office of reading text messages sent to their phones.

The military prosecutors had been trying to ascertain who within the military was leaking information to the media about the investigation into the April 2010 Smolensk plane crash disaster.

Colonel Jerzy Artymiak will replace Mr Puralski as chief military prosecutor.

Izabela Depczyk

BUSINESS

FEBRUARY 6-12, 2012

www.wbj.pl

Shale gas

Analysts say more exploration is needed to assess the commercial viability of shale gas in Poland US oil and gas giant Exxon Mobil became the latest firm to encounter disappointing results from shale gas exploration, after it announced last week that two exploratory wells it had drilled in Poland were not commercially viable.

“While we did find gas [at the Siennica-1 and Krupe-1 wells], it did not flow in commercial quantities in either of those two wells,” said vice president of investor relations David Rosenthal while discussing the firm’s Q4 2011 results.

British firm 3Legs Resources’ well in ¸ebieƒ and American BNK Petroleum’s L´bork well, both drilled last year, also showed lower rates of shale gas than expected.

According to estimates from Polish oil giant Orlen, the cost of a single vertical borehole may range from $613 million. Experts contacted

by WBJ said that while recent setbacks experienced by larger firms such as Exxon might make it difficult for smaller companies to access loans for shale gas exploration in Poland, neither Poland nor investors should worry too much.

According to Bartosz WiÊniewski, an energy expert at the Polish Institute of International Affairs (PISM), it would be premature to conclude that Poland’s shale gas revolution is suddenly at a crossroads. “Let us not forget that it took the US 30 years to explore shale gas before being able to extract it on a commercial scale,” he said.

“It will be a setback for Exxon and they might show some disquiet, but we have to remember that these are still

SHUTTERSTOCK

Exxon reports disappointing shale gas findings

Gas did not flow in commercially viable quantities at two of Exxon’s exploratory wells the early days of shale gas exploration in Poland, and failures are a necessary part of the learning process.”

Pawe∏ Poprawa, a geologist at the Polish Geological Institute (PIG), was even more

upbeat. “On the positive side, there is shale gas. Now the problem is how to extract it,” he said. “Companies should treat this [setback] as a learning curve, a process which also inevitably includes failures,

and which will hopefully result in the companies changing the technology used for exploration and extraction at the remaining concessions,” he added.

Izabela Depczyk

Lot Polish Airlines could see a significant part of its long-distance fleet replaced with Boeing 787 Dreamliners this year.

Poland’s national carrier has ordered a total of eight Dreamliners to replace its aging fleet of Boeing 767s, but had originally expected to receive just two of them in 2012.

But last week, Dziennik Gazeta Prawna reported – citing unnamed sources – that Lot could receive the majority of the Dreamliners this year. As a result of quicker-than-expected production at Boeing’s Seattle plant, Lot is reportedly expecting to receive five of the planes by the end of 2012, with the first expected at the end of the third quarter.

The final three Dreamliners are expected to be delivered by February 2013, although DGP writes that there is a possibility all eight airplanes could be delivered this year.

Leszek Chorzewski, a spokesperson for Lot, declined to comment on the report except to say that Lot is due to receive its first 787 at the turn of the third and fourth quarters of this year.

The Dreamliners, which can seat between 210 and 290 passengers, will be used by Lot to service routes to North America and Asia. The plane is Boeing’s most fuel-efficient, consuming 20 percent less fuel than a 767 of comparable size.

Gareth Price

COURTESY OF WIKIMEDIA COMMONS

Lot could receive five new Dreamliners this year

Lot plans to replace its fleet of Boeing 767s

BZ WBK, Millennium record strong 2011 net profits

Polish lenders Bank Zachodni WBK and Bank Millennium both recorded robust annual net-profit growth for full-year 2011. BZ WBK, Poland’s third-largest bank by market value, recorded a net profit of z∏.1.18 billion last year, an annual increase of 21.6 percent. For the fourth quarter, however, the bank saw its net profit fall by 26 percent y/y to z∏.198.4 million, due to costs related to it being taken over by Banco Santander.

BZ WBK CEO Matthew Morawiecki said at a press conference last week that the lender does not expect a slowdown in demand for loans in 2012. He said that growth of mortgages and cash loans this year should be in the double digits.“I believe, I am even convinced, that the profit in 2012 will be higher than last year. I do not see serious risks that could push us from the path of growth,” said Mr Morawiecki. Bank Millennium’s net profit for 2011, meanwhile, grew by an annualized 43 percent to stand at z∏.466.5 million. The bank said this was the highest year-end profit in its history,

if one-off capital gains are not taken into account. The lender’s Q4 net profit came in at z∏.125 million, a level 12 percent higher than for the corresponding quarter one year ago, as it continued to reduce provisions on bad loans. “It was a good year for the bank, even though we worked in difficult conditions. The bank exceeded business objectives, particularly in regards to increasing retail customers. This gives us a good position to achieve good results this year,” Bank Millennium CEO Bogus∏aw Kott said at a press conference last week.

Veronika Joy

Bouncing back Net profit in z∏. billions, between 2007-2011 Millennium

BZ WBK

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0.0 2007

Euro-zone unemployment at record high According to December 2011 unemployment figures from Eurostat, the unemployment rate in the euro zone, at 10.4%, is the highest recorded since the euro was launched in 1999.

Unemployment among youth (under 25) reached 21.3% in the 17 euro-zone countries. Average figures for the 27 EU members stood at 9.9% for general unemployment and 22.1% for youth unemployment.

Poland did worse than both the euro zone and the EU average, with general unemployment at 10.8% and unemployment among youth at 27.7% for December 2011.

Mining tax postponed Deputy Minister of Finance Maciej Grabowski has announced that the planned copper and silver tax proposed by PM Donald Tusk in November of last year will not come into effect on March 1, as initially expected, reported Parkiet. The new date will be determined by the parliamentary schedule.

When introduced the new tax will mainly affect KGHM, Poland’s sole producer of copper and silver. The government estimates that the new tax will add about z∏.1.8 billion to the budget in 2012, and over z∏.2.2 billion in the future.

Goldman optimistic about Poland

Banking

The two Polish lenders are optimistic that this year will also be kind to them

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Source: BZ WBK, Millennium

According to Goldman Sachs, the second wave of the economic crisis may subside faster than initially anticipated. This, the bank says, would allow the Polish economy to begin growing faster as early as the end of 2012, Puls Biznesu reported.

Goldman Sachs says it revised its outlook mainly as a result of the EU’s recently adopted fiscal pact. Poland has already established itself as more stable than the majority of EU countries, and will therefore continue to attract more investors, especially those interested in expanding into emerging markets, the bank says. ●

BUSINESS

www.wbj.pl

FEBRUARY 6-12, 2012

Gas

As chill sets in, expensive Russian gas squeezes PGNiG The Polish gas monopoly is losing several million z∏oty a day

Low-cost air carrier Wizz Air plans to move its operations from Warsaw’s Chopin Airport to the currently underconstruction Modlin Airport, company vice president John Stephenson told journalists last week. The first Wizz Air flight from the new facility is due to depart on July 18, 2012.

The Hungarian carrier hopes the move to Modlin Airport, which is located 35 km northwest of the capital, will help it reduce operational costs by 15-20 percent. It says charges for taking off, landing

COURTESY OF GAZPROM

With temperatures in Poland holding well below zero since the end of January, Polish gas monopoly PGNiG has seen demand increase dramatically, from 45 million cubic meters a day at the beginning of the year to 70 million cubic meters a day at the beginning of February.

Though that should have been good news, it has actually meant severe losses for PGNiG, as the Polish firm is paying more for the gas it imports from Russia than the amount it is authorized to charge domestic customers.

As the Polish Energy Regulatory Office (URE) rejects PGNiG’s demands for a hike in gas tariffs from their August 2011 levels, Flawiusz Pawluk, an analysts at UniCredit CAIB Group, estimates the firm’s daily losses on sales of gas to domestic clients add up to z∏.15 million.

While he believes that the URE should raise gas tariffs, the real problem lies in PGNiG’s contract with Russia’s

Wizz Air to quit Warsaw Chopin Airport for Modlin and refueling at Modlin will be much cheaper than at Chopin Airport.

The carrier plans to service a total of 19 destinations from the facility, which is scheduled to open in June this year.

Competitor Ryanair, which is also due to start operating out of the new airport this summer, has even bigger plans. The carrier hopes to offer a total of 40 destinations and service 3.5 million passengers annually from the airport.

Gareth Price

PGNiG pays much more than its Western European counterparts for Russian gas Gazprom, which accounts for around 85 percent of the Polish firm’s imports, said Mr Pawluk.

The contract between Gazprom and PGNiG fixes the price of gas at the nine-month average of the price of crude oil, and is set in US dollars. Because oil prices rose in the second half of 2011, and since the z∏oty weakened against the dollar, Mr Pawluk estimates PGNiG pays $500 for every 1,000 cubic meters it imports. That’s much more than the average price on

the spot market in Western Europe. The average monthly price for Russian gas in Germany, for instance, stood at $435 per 1,000 cubic meters in December 2011.

Gazprom lowered its prices for several Western European firms in mid-January, including Germany’s Wingas, France’s GdF Suez, Austria’s Econgas, Italy’s Singerie Italiane and Slovakia’s SPP. But until Poland’s LNG terminal in ÂwinoujÊcie is completed in 2014, the coun-

try’s negotiation position is too weak to obtain such concessions, said Mr Pawluk.

PGNiG’s only other way out may be a favorable decision in its arbitration case with Gazprom, in which the Polish gas provider hopes to change the contract’s price-fixing mechanism, said Mr Pawluk.

The case is currently before an arbitration court is Stockholm and is not expected to be settled before 2013.

Alice Trudelle

SHUTTERSTOCK

6

Wizz Air is seeking cheaper charges than those it pays at Chopin Airport

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

Employee dismissal obligation Pursuant to a recent resolution of the Supreme Court (January 24, 2012), an employer is not released from the obligation of informing the relevant trade union of its intention to terminate an employment contract with an employee, even if the trade union has failed to give it information about employees who are protected by the union, despite being requested to do so. This is assuming that the failure to grant the information is justified by personal data protection regulations.

Rules on acknowledging Polish citizenship for foreigners On January 18, the Constitutional Tribunal recognized the motion of the president concerning rules on acknowledging Polish citizenship. The Constitutional Tribunal decided that Article 30 of the Act of April 2, 2009 on Polish Citizenship (the act is waiting to be signed by the president and is not a binding law yet) is compliant with Article 137 of the Constitution.

In accordance with the law in force, there are only two cases in which a voivode (the voivodship executive) may acknowledge a foreigner as a Polish citizen. Firstly, in case of a person who is not a citizen of any other country, if this person has lived in Poland for at least five

years on the basis of a permission to settle. Secondly, in case of a spouse of a Polish citizen, if the marriage has lasted for at least three years and if that foreigner has permission to settle in Poland.

The act will introduce a new, wider catalog of cases in which foreigners may be acknowledged as Polish citizens. It has to be underlined that “citizenship is acknowledged” by a voivode on the basis of the Act and by an administrative decision which is not of a discretionary nature and which is subject to court supervision. At the same time, the president has the right to “grant citizenship” on the basis of the constitution. That right is of a discretionary nature and it is not subject to court supervision.

Liquidation of public schools Pursuant to a proposed change to the Act on the Educational System, the liquidation of a public school will be possible only after a positive decision has been obtained from the school’s superintendent. Until now, local government authorities have been able to liquidate schools exclusively on the basis of economic criteria, even if it contradicted the school superintendent’s stance. According to the project’s authors, the changes should have a positive impact on the quality of teaching in Poland. ●

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US Republican Party primaries

Photo essay: After Florida, Republican race takes new shape Mitt Romney smiles as New Jersey Governor Chris Christie introduces him at an early morning rally in West Des Moines, Iowa on December 30, 2011. Despite frigid temperatures and persistent freezing rain, several hundred supporters braved the cold in a supermarket parking lot to witness the half-hour long event

Mitt Romney has solidified his position as front-runner, but there are many more battles to be fought A full month into voting, the 2012 contest for the United States Republican Party nomination has reflected the pulse of the country’s politics in a tumultuous year that has been punctuated with economic anxiety and fear in the face of perceived foreign threats.

fending off his most powerful opponent to date. Not one to admit the lowering of expectations, Mr Gingrich has pledged to remain in the race until the party nominating convention in August, while fellow candidates Ron Paul and Rick Santorum continue to coast along.

Mitt Romney Mitt Romney has long been waiting for a serious challenger against whom to test his overwhelmingly superior advertising weaponry. Until

After a rally in Des Moines on the morning of the Iowa caucus, Governor Mitt Romney autographs a copy of the May 21, 2007 issue of Time magazine that featured his portrait on the cover. January 3, 2012 With Florida’s affirmation of Mitt Romney by a margin of some 14 percent, the first American “megastate” has indicated that diverse populations, both wealthy and those most ravaged by the economic crisis, reluctantly prefer the candidate over his feisty opponent, Newt Gingrich, the speaker of the House of Representatives during the presidency of Bill Clinton.

South Carolina revealed an unwillingness to crown Governor Romney prematurely, and Mr Gingrich’s win there allowed him to go head-tohead with Mr Romney in Florida. But Mr Gingrich ultimately failed to live up to high expectations in nationally televised debates, and Mr Romney proved himself capable of

Newt Gingrich came roaring out of South Carolina, it seemed Mr Romney was bound to walk away with the nomination, but Mr Gingrich scored a 12.6 percentage-point

victory and thus became Mr Romney’s primary target.

Now that its effectiveness has been proven in Florida, Mr Romney’s organizational superiority is a major advantage for him down the road, and his deep base of financial donors cannot be overlooked.

Mr Gingrich, by comparison, has largely been financed by a single casino mogul whose $10 million worth of support has kept his candidacy alive against overwhelming odds.

Yet Mr Gingrich survives in the public’s imagination, buoyed by activist supporters who seem willing to stand by the self-proclaimed “Ronald Reagan Republican” instead of allowing Mitt Romney, the “Massachusetts Moderate,” to capture the party’s top position without a fight.

As his opponents divide their time between a wide array of states in the coming weeks, Mitt Romney has considerably more chips to spread around. Unless Mr Gingrich can find a way to convincingly overcome the growing list of troublesome labels Mitt Romney has thrown at him – unreliable, zany, grandiose – it is increasingly likely that his delegate deficit will increase, and the narrative of Mitt Romney’s inevitability will finally be written.

Ron Paul takes in an enthusiastic crowd gathered to cheer him on following his third-place finish in the 2012 Iowa caucus. Ankeny, Iowa. January 3, 2012

Newt Gingrich The prevailing political wisdom is that Newt Gingrich excels in the position of “insurgent,” nipping at the heels of his rivals and tenaciously claiming for himself the support of a sizable segment of the voting public at any given moment. Mr Gingrich’s resounding victory in South Carolina last month is proof of this ability, but the unintended consequence of his win was the sudden realization that he stood a chance of running away with the nomination.

Mitt Romney’s campaign, invigorated from a stinging defeat in South Carolina, set about deploying the candidate’s many surrogates to assault Gingrich’s candidacy on a number of fronts, and the result was a net gain. To simplify the complex narrative, Mr Romney was more negative in a more coordinated fashion, and consequently benefited.

Ron Paul While his opponents were jetting around Florida and courting votes in major metropolitan areas, Ron Paul’s campaign was operating according to a different strategy. In late January, Ron Paul visited the coastal New England state of Maine for two days of events that brought him to the campuses of local universities and snowy town squares.

Why Maine? The state holds a caucus voting system similar to that seen of Iowa, in which voters gather to vocally indicate their preference among the candidates instead of in the privacy of the voting booth.

Unlike in Florida, a winner-take-all state with five expensive media markets where Ron Paul’s campaign dollars would have scant effect, Maine is frequently overlooked, since it is lightly populated. The state’s propor-

Newt and Callista Gingrich greet a ballroom full of supporters following his 12.6 percentage-point victory in the South Carolina Primary on January 21, 2012 in Columbia, South Carolina tionally allocated delegates keep alive the possibility that Ron Paul could succeed in capturing at least a strong second-place finish for a relatively cheap investment.

Down the road, expect Paul to continue passing up the steep advertising costs of larg-

from a medical emergency, Rick Santorum interrupted his active campaign in Florida to return to his home in western Pennsylvania. During this time, the belated winner of the Iowa caucus decided that his time would be better spent in certain states down the sched-

Rick Santorum emerges from the Merrimack Valley Railroad Company facility after a campaign event in Northfield, New Hampshire on January 5, 2012 er, more demographically complex states while he takes his message to far-flung locales such as North Dakota, Colorado, Washington, Idaho, and Missouri in the hopes of symbolic victories.

Rick Santorum Sidelined by news that his young daughter was suffering

ule to which the nomination will soon shift.

Like Ron Paul, Mr Santorum will campaign in Missouri, Colorado, Minnesota, and Nevada to try and solidify a base of support before Mitt Romney and Newt Gingrich arrive with the national media in tow.

All text and photos: Luke Vargas

A stage sits empty after the conclusion of a press conference by Newt Gingrich at the Radisson Hotel in Manchester, New Hampshire on December 21, 2011

INTERNATIONAL

FEBRUARY 6-12, 2012

www.wbj.pl

Russian Sberbank may debut on WSE

Foreign aid

Setting a good example

Russia’s Sberbank has been trying to enter the Polish market by buying a bank, but the company is now considering listing on the Warsaw Stock Exchange, according to Dziennik Gazeta Prawna, quoting Russia’s Ria Novosti agency. “The WSE is showing strong signs of progress. If we see a potential demand for our shares, it is possible that such a decision could be taken,” said Sberbank’s CEO German Gref.

Timing Asked whether the current European crisis provided quite the right setting for Poland to make higher contributions to development aid, Mr Devictor said that for donors there was never a “good time” to increase

aid spending.

But, he admitted, “it’s very clear that 2012 is not going to be a year with huge pressure to increase foreign assistance.

Rather, we are talking about a continued gradual increase of Poland’s role. However, precisely because 2012 may be a year where it is difficult to do more, I think that puts even more emphasis on the need to do better,” Mr Devictor added.

Experience Mr Devictor described Poland as “the poster child of successful transformation.” As such, there are many lessons that Poles have learned that are of critical importance to developing countries, he said.

“Poland has successfully managed two transitions: one was a shift from an authoritarian system to a fully democratic society, and a transition from a centrally planned and relatively backwards economy to being one of the EU leaders in terms of economic growth.”

Mr Devictor argued that the lessons from these experiences are relevant for several developing countries, including those in the Eastern Partnership (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine), which are on the Polish foreign aid target-country list. Political difficulties and changes in some of these countries should not deter Polish efforts, he said.

“In the field of development we typically see one step back for two steps forward. Countries that show almost uninterrupted progress such as Poland or South Korea are really the exception. But I think this raises the question of how Poland can use its aid to be one of the elements that make things better in these countries, and help Poland get a bit more influence into what is happening.”

Poland’s transition experi-

COURTESY OF FLICKR/POLANDMFA

Poland, the “poster child of successful transformation,” has much to offer the developing world, but by doing more it could strengthen its global profile, says Xavier Devictor, World Bank country manager It wasn’t so long ago that Poland was on the receiving end of international development assistance, but today it doles out more than z∏.1 billion annually in aid to around 80 countries.

However, Poland is still not living up to its commitments and, according to several non-governmental organizations, the money it does spend could be used more efficiently.

When it joined the EU in 2004, Poland pledged to commit 0.33 percent of Gross National Income (GNI) to foreign aid by 2015. In 2010 it spent z∏.1.139 billion, which amounts to only 0.08 percent of GNI. According to the EU’s “Accountability Report 2011 on Financing for Development,” the risk of Poland not meeting the 2015 target is relatively high.

“Poland’s spending on foreign aid in 2010 was about half of Turkey’s and one-tenth of South Korea’s. From our perspective, a country that is becoming a strong voice in the EU could do more,” said Xavier Devictor, World Bank country manager for Poland and the Baltic countries. “To consolidate diplomatic strength Poland has deployed troops, used its diplomats, but it can also gain some influence by providing aid, especially if it’s well targeted,” he added.

The World Bank, he said, would like to encourage Poland to increase its contributions, to reflect upon the mix of programs it wants to finance, and to make sure it is getting the most out of the money it allocates to development aid.

9

Comarch buys Swiss IT firm

Polish aid project in South Africa ence is also relevant for Arab Spring countries such as Tunisia and Egypt, Mr Devictor said.

The fact that North Africa has not been a target of Polish foreign policy up to now might be an advantage, as it makes Poland one of the few big, developed EU countries that does not have an agenda or a legacy in this part of the world, he added.

Challenges In its latest annual Aid Watch report, the Zagranica group of 61 NGOs says Poland’s main challenge in foreign aid policy is its lack of a clear, long-term vision.

As an example they cite the regularly changing list of countries within Poland’s Official Development Assistance system, pointing out that money has been spent in countries that are not listed as a top priority.

For instance, in both 2010 and 2009 the largest recipient of Polish foreign aid was China – not a country listed as a priority for Polish aid. This assistance was provided mainly in the form of tied-aid loans, meaning the money had to be used for the import of Polish goods and services.

And Mr Devictor voiced his own doubts about the success of tied-aid loans. “From my perspective, tied aid doesn’t work very well because it’s not really in the interest of the receiving country but of the donor’s busi-

nesses. The receiving country ends up paying sometimes significantly more than they would have through an open bidding process,” he said.

Poland is arguably still in the process of defining its role as a donor country. A positive step in that direction is the Act on Development Cooperation, which entered into force on January 1, 2012 and provides the first legal framework for Poland’s development cooperation system.

According to Zagranica, as the government works on a

multi-annual plan for Polish aid between 2012 and 2016, it should pay attention to “fundamental changes needed in relation to transparency, systems of evaluation and setting priorities for Polish aid, so that even as a small and new donor [it can] be perceived as an effective one.”

Alice Trudelle

Increased and targeted funds from Brazil, Russia, India, China and others are changing the global development landscape. Log on to WBJ.pl this week for an expanded interview with Mr Devictor

Kraków-based IT company Comarch has spent z∏.7 million on purchasing Swiss A-Mea Informatik, despite the franc’s recordhigh value. “This is a big step in improving Comarch’s situation in the Swiss IT market,” Konrad Taraƒski, the firm’s vice president and financial director, told Puls Biznesu. All of A-Mea’s stock is now controlled by CASA Management and Consulting, a company controlled by Comarch. ●

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Where the money goes Top 10 recipient countries of Polish foreign aid in 2010 China

2.

Belarus

3.

Ukraine

4.

Afghanistan

5.

Georgia

9%

44% China

47%

6.

Vietnam

7.

Kazakhstan

8.

Angola

9.

Moldova

10.

Armenia

Target countries (Belarus, Ukraine, Georgia, Moldova, Afghanistan, Angola, Palestinian territories) Other countries

Total amount of aid: z∏.1.139 billion ($355 million, €271 million)

Source: Zagranica, “Polish Aid Watch report 2011”

1.

Division of Polish bilateral aid by countries, 2010

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

10

FINANCE & ECONOMICS

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Economic activity

Three economists, three views

Poland’s manufacturing sector bounces back in January z∏oty becoming stronger compared to November and December last year.

“In January the z∏oty strengthened, leading to a higher PMI reading. If the z∏oty remains strong then the outlook for Poland’s manufacturing industry will remain positive,” Mr Kalisz added.

In contrast with the Polish PMI reading, Hungarian and Czech PMI data for the manufacturing sector in January indicated a deterioration in business conditions, though in Hungary’s case the pace of this deterioration declined from a month earlier.

Izabela Depczyk

A good start for 2012 Poland's manufacturing PMI from January 2011 to January 2012 60 57 54 51 48

11 20 Ap 11 ril 20 1 Ma 1 y2 01 Jun 1 e2 01 1 Jul y2 0 11 Au gu st Se 20 pte 11 mb er Oc 2011 tob er No 2 vem 011 be De r 20 cem 11 be r Jan 2011 ua ry 20 12 rch

Ma

20 ry

rua

ua

ry

20

11

45

Jan

The purchasing managers’ index (PMI) reading for Poland’s manufacturing sector grew last month for the first time since October 2011 on the back of a rebound in new orders and a stronger z∏oty.

Poland’s seasonally adjusted PMI reading for January came in at 52.2, greatly exceeding predictions of a maximum of around 50.8. A figure above 50 indicates expansion in the manufacturing sector while anything below that suggests contraction.

The January figure is the third largest month-on-month increase for Poland in the history of the index and represents the strongest improvement in the past six months.

The figure was significantly better than the 48.8 recorded in December, signaling an improvement in the condition of the industrial sector.

“The survey saw a number of positive features, including a clear rise in production, a rebound in new orders

(including export orders), and a stabilization in the labor market,” Bank Zachodni WBK analysts wrote in a market report.

The bank added that the data comes as a positive surprise, since it shows the impact of the European debt crisis on the Polish economy may be much smaller than had been feared.

Piotr Kalisz, chief economist for Poland at Citi Handlowy, told WBJ that Poland’s score reflects what is going on in Germany and the euro zone.

He added that the higher reading is also a result of the

Feb

Future PMI readings are expected to stay positive if the z∏oty remains strong

FEBRUARY 6-12, 2012

Source: bankier.pl

At a recent American Chamber of Commerce meeting, three prominent economists shared their different outlooks for the Polish economy in 2012.

Republic it is more than 60 percent, so a decrease in foreign demand is reflected in this category to a limited extent. And finally, Poland uses [money] allocated to it under the EU funds.”

to achieve 3-4 percent growth in the medium term.”

The pessimist

The optimist The moderate

Monika Kurtek, chief economist at Bank Pocztowy, said she was optimistic about 2012.

“According to my projections, economic growth in Poland in 2012 will be 3.1 percent. The last three years have shown that the Polish economy is relatively immune to the turmoil in the global economy, in particular to other countries in the region affected by the problems in the euro zone.”

“I believe this because of these three reasons: first, we have a large internal market of 38 million people who buy goods and services. Second, the share of exports of goods and services in GDP in Poland is only about 40 percent, while in Hungary and the Czech

Janusz Jankowiak, chief economist at the Polish Business Roundtable, says his outlook is more middle-of-the-road.

“There’s a strong correlation between Poland and Germany. Poland achieved 4.3 percent GDP growth last year because Germany achieved 3 percent growth. This year we should stay on the level of 2.4 percent GDP, which is still impressive if you look at the euro zone as a whole.”

“In the medium term, the first thing that is needed is structural reforms that the government has tried to start, especially pension and tax reforms. If they can start these reforms, we’ll have the chance

Krzysztof Rybiƒski, professor and rector of the Vistula University in Warsaw, is more pessimistic, warning Poles do not to feel too comfortable.

“2012 is a transition year, between the good and the bad.

Over the last two years, Poland saw 4 percent growth. This year it will start to fall, and to 2 percent. Consumer spending will fall because of the higher living costs and taxes. Private investments will slow down because investors are afraid to invest ‘big time.’ Foreign investment will drop and public investments will go down because this is the last year of the massive EU spending.”

“The first half of the year will still be quite good and by the end of the year, there will be the first signs of an impending recession.”

Veronika Joy

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OPINION & ANALYSIS

FEBRUARY 6-12, 2012

www.wbj.pl

Poland right to sign fiscal treaty, despite conditions

P

rime Minister Donald Tusk has decided that Poland will join a European fiscal pact with 24 other EU countries, despite some of Poland’s main demands not being met at a summit in Brussels last Monday. “[The agreement] does not satisfy us 100 percent, but we have decided to sign the pact,” Mr Tusk announced after the meeting of EU leaders.

Poland went into the summit demanding that it be included in all euro-zone meetings, something which France in particular was opposed to.

The compromise agreement now states that there will be two types of euro summits. The first will concern coordination of economic policy in the euro zone, for example regarding bailout funds. These will be attended only by the euro 17.

But for summits on other matters such as the implementation of the fiscal pact itself or competition issues, non-euro members will be invited.

reporters that the document is “at best unnecessary and at worst damaging.”

“We are working on it because Berlin needs it in its domestic politics,” he said.

But all that is irrelevant from the point of view of Poland’s interests in the EU. Poland needs to exert as much influence on the European decision-making process as it possibly can from the position it holds. Those in Poland who rail against German domination and agreements being signed to please Berlin seem to forget who has been paying the bills recently.

The right choice Poland is right to join the fiscal union on these terms, but not because it is a great idea or because it will “save” Europe.

Indeed, the pact does not include a single fiscal restriction that does not already exist in current EU treaties.

German Chancellor Angela Merkel, faced with a public that often feels disdain at German taxpayer money being used to bail out Greece, simply needed to be able to flash a fresh document at home, showing that other countries will now have to be more careful about their spending habits.

Finnish Foreign Minister Erkki Tuomioja even went as far as to tell

It

A common course Understandably, there is a debate about how to achieve recovery. Advocates of austerity argue that debt has a negative impact on growth; proponents of further stimulus counter that it is low growth that generates public debt, not the other way around, and that austerity in times of recession only makes things worse.

But Europeans do not have to agree on everything to find a common course. We can disagree about the

long-term effects of liquidity injections, but we can all agree that it is not right to allow profitable companies to fail because credit markets are not working. We do not have to see eye to eye on fiscal policy to understand that it makes more sense to promote investment than to see our productive structure languish. And we all know that it is more cost-effective to invest in retraining the jobless than to allow long-term unemployment.

In any case, doubts about the negative impact of austerity are becoming impossible to ignore. History shows that in a deep recession it is far more dangerous to withdraw economic stimulus too early than too late.

An excessive cut in public spending in the current circumstances can lead to a contraction in growth, which is already happening: the International Monetary Fund now projects that the euro zone will see economic contraction of 0.5 percent in 2012. Structural reforms are important to guarantee future sustainable growth, but they do not generate growth in the short term, which is what Europe needs. Instead, in exchange for meager progress on debt reduction, Europe risks causing lasting damage to its growth potential.

Long-term costs Compared to a new recession, the long-term cost of stimulus policies is insignificant. In many countries, current budget deficits are the result not

Remi Adekoya

Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

receiver of EU funds and a lot of that money comes from the German taxpayer – making staying on the good side of Germany a key plank of Poland’s foreign policy. ●

He who pays the piper …

If Poland were contributing hundreds of billions of euro towards bailing out financially troubled European countries, then its needs and proposals would have serious traction as well.

But at present, Poland is still a net

Austerity vs Europe is now increasingly clear that what started in late 2008 is no ordinary economic slump.

Almost four years after the beginning of the crisis, developed economies have not managed a sustainable recovery, and even the better-off countries reveal signs of weakness. Faced with the certainty of a double-dip recession, Europe’s difficulties are daunting.

Not only is Europe running the risk of lasting economic damage; high longterm unemployment and popular discontent threaten to weaken permanently the cohesiveness of its social fabric. And, politically, there is a real danger that citizens will stop trusting both national and European institutions, and be tempted by populist appeals, as in the past.

Europe must avoid this scenario at all costs. Economic growth must be the priority, for only growth will put people back to work and repay Europe’s debts.

11

of reckless government overspending, but of temporary measures to deal with the crisis. With interest rates already low and the private sector deleveraging, there is little risk of expansionary policies causing inflation or crowding out private investment. By contrast, spending reductions could undermine economic activity and increase, not decrease, the public-debt burden.

Public debt, moreover, should not be demonized. It makes financial sense for states to share the cost of public investments, such as infrastructure projects or public services, with future generations, who will also benefit from them. Debt is the mechanism by which we institutionalize intergenerational solidarity. The problem is not debt, but ensuring that it finances productive investment, that it is kept within reasonable limits, and that it can be serviced with little difficulty.

History repeating Yet, ominously, the same arguments that turned the 1929 financial crisis into the Great Depression are being used today in favor of austerity at all costs. We cannot allow history to repeat itself. Political leaders must take the initiative to avert an economically driven social crisis. Two actions are urgently needed.

At a global level, more must be done to address macroeconomic imbalances and generate demand in

Javier Solana

surplus countries, including developed economies like Germany. Surplus emerging-market economies must understand that a prolonged contraction in the developed world creates a real danger of a global downturn at a time when they no longer retain the room for maneuver that they had four years ago.

Within the euro zone, structural reforms and more efficient public spending, which are essential to sustainable long-term growth and debt levels, must be combined with policies to support demand and recovery in the short term. The steps taken in this direction by German Chancellor Angela Merkel and French President Nicolas Sarkozy are welcome but insufficient. What is needed is a grand bargain, with countries that lack policy credibility undertaking structural reforms without delay, in exchange for more room within the EU for growthgenerating measures, even at the cost of higher short-term deficits.

Enlightened leadership The world is facing unprecedented challenges. Never before in recent history has a deep recession coincided with seismic geopolitical change. The temptation to favor misguided national priorities could lead to disaster for all.

Only enlightened political leadership can avert this outcome. European leaders must understand that adjustment programs have a social as well as

a financial side, and that they will be unsustainable if those affected face the prospect of years of sacrifices with no light at the end of the tunnel.

Austerity at all costs is a flawed strategy, and it will not work. We cannot allow a misconceived notion of “discipline” to cause lasting damage to our economies and inflict a terrible human toll on our societies. All of

“Ominously, the same arguments that turned the 1929 financial crisis into the Great Depression are being used today in favor of austerity” Europe must agree on a short-term growth strategy – and implement it quickly.

Javier Solana, former EU high representative for the common foreign and security policy, secretary-general of NATO, and minister of defense of Spain, is a distinguished senior fellow in foreign policy at the Brookings Institution and president of the ESADE Center for Global Economy and Geopolitics.

Copyright: Project Syndicate, 2012.project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. 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.

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REMI ADEKOYA (RADEKOYA@WBJ.PL)

INTERNS IZABELA DEPCZYK VERONIKA JOY

¸UKASZ MAZUREK COLUMNISTS

PAUL FOGO JUDITH GLINIECKI ADAM NARCZEWSKI ANDREW NAWROCKI

MARKETING &SALES

MARTA CZESZEJKO-SOCHACKA (MCZESZEJKO-SOCHACKAKA@WBJ.PL)

AGNIESZKA BREJWO

KAROL KOSIOREK (KKOSIOREK@WBJ.PL)

MARKETING &SALES DIRECTOR GRAPHIC DESIGNER

MANAGING DIRECTOR MONIKA STAWICKA

(ABREJWO@WBJ.PL)

PR & MARKETING SPECIALIST

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL) SUBSCRIPTIONS MANAGER

CARTOONS

PIOTR WYSKOK

AGNIESZKA KUCZY¡SKA (AKUCZYNSKA@WBJ.PL)

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

PRINT & DISTRIBUTION COORDINATOR

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

COVER STORY

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Poland’s poor regions see highest inflation The poorest regions in Poland are experiencing the fastest-growing price increases, according to the latest numbers from the country’s Central Statistical Office. In the Podkarpackie voivodship, inflation rose by 4.9% in 2011, while the Âwi´tokrzyskie voivodship also saw a high inflation rate, of 4.7%. In richer areas such as Mazowieckie voivodship and Silesia, inflation fell to 3.7%, 0.6 percentage points lower than the national average. Experts say the latest figures are evidence that differences between Polish regions are shrinking, with less affluent areas seeing greater price increases because previously they were significantly cheaper than Poland’s more welloff regions.

Lotos, PGE, Orlen prepare for downturn Major Polish oil and energy companies Lotos, Orlen and PGE are preparing for the expected global economic downturn. Lotos Group has designed a “program of optimal expansion.” As part of the plan, it will freeze some non-essential investments, while also reducing employment growth and administrative costs, reported Puls Biznesu. By 2014, the energy giant wants to have amassed savings of some z∏.900 million, and z∏.1.5 billion by 2016. ●

FABRUARY 6-12, 2012

Euro-zone crisis

Poland’s second-class ticket

Remi Adekoya

Poland has had to compromise in its agreement to sign a fiscal pact that few seem to believe will solve Europe’s debt problems

it,” Mr Tusk told journalists after the summit.

competition in the EU and the implementation of the fiscal treaty will be discussed in the group of 25 participating members.

However, meetings concerning the functioning of the euro zone and rescue funds for troubled members of the currency bloc will be discussed solely by the 17-member eurozone group. “The compromise we reached does not satisfy us 100 percent. However, it is satisfactory enough for us to sign

Not everyone shared the prime minister’s view though, and many see the fiscal treaty itself as being an inadequate solution to Europe’s problems.

“The train is moving in the right direction of economic and political integration. But we are traveling in second class, not first class. To get into first class we would have to buy a ticket to the euro zone,” Leszek Miller, leader of the Democratic Left Alliance, said on Polish Radio following the summit.

With the euro-zone crisis seeming to have no end in sight, 25 of the European Union’s 27 member states, including Poland, agreed on January 30 to sign a fiscal pact intended to enforce budget discipline and restore confidence in the European economy.

Only the UK and the Czech Republic decided not to join the new fiscal union.

Polish Prime Minister Donald Tusk and his government are insisting that Poland joining the new group will help prevent the creation of a “multi-speed Europe” and keep Poland in the continent’s political mainstream.

Before the January 30 Brussels summit, Mr Tusk declared that Poland would not join the pact if the terms of the deal included exclusive meetings of euro-zone countries, stressing that Poland must remain a participant in the decision-making process in the EU. This led to a standoff between Warsaw and Paris, since France strongly supported a euro-zone members-only caucus of countries that would meet and make the most important decisions relating to the currency bloc.

The conflict was resolved with the compromise that matters concerning issues such as

Second-class ticket

Opposition Law and Justice MEP Konrad Szymaƒski also found fault with Mr Tusk’s European policy, saying it was essentially “acceptance of what they [France and Germany] do.”

Jan Filip Stani∏ko, an expert at the Sobieski Institute, was also critical of Mr Tusk’s approach to the EU, saying the prime minister has made a mistake in becoming what he calls “a German proxy” at the expense of being a leader of the CEE region.

He pointed to the fact that Poland and other members of the Visegrad Group (compris-

COURTESY OF FLICKR/PLATFORMARP

12

Donald Tusk described the January 30 compromise as “satisfactory”

ing the Czech Republic, Hungary, Poland and Slovakia) together have more votes in the European Council than France and Germany combined, saying this is evidence that Mr Tusk isn’t playing the strongest hand he has at his disposal.

Mr Stani∏ko said there were four different strategies at play during the January EU summit: the German strategy of “increased prudence and fiscal responsibility,” the French strategy of “increased effectiveness and fiscal management,” the British strategy of “more free market” and the Polish strategy of “more solidarity within the EU.” “In the end there was a compromise between solidarity and effectiveness but I don’t think it will be a very efficient compromise,” Mr Stani∏ko said.

Polish Institute of International Affairs (PISM) expert Agata Gostyƒska took a more wait-and-see stance regarding the pact.

“It is vital that the noneuro-zone members, including Poland, participated in the negotiations and contributed to the final text by advocating a more ‘community method,’ but it is too early to say what the real impact of the fiscal compact on the EU integration process will be and whether it will lead to further differentiation of the integration levels,”

COVER STORY

FABRUARY 6-12, 2012

www.wbj.pl

JSW announces z∏.635 million power plant tender

Mr Gostyƒska said.

She added that the agreement’s ratification process and the insertion of a balancedbudget rule into national legal systems would be “the first test of the fiscal union’s significance.”

Regardless, Mr Tusk has chosen a clear path and is likely to stick to it. Poland’s strategy will be to stay in the mainstream and remain in Germany’s good graces, in hopes to broker influence. But where does that leave Europe as a whole?

COURTESY OF THE EUROPEAN COMMISSION

Fiscal union The fiscal union’s stated aim is the imposition of balancedbudget rules on member states.

But there is almost unanimous consensus in Europe that the agreement is less about real fiscal discipline and more about Germany’s Chancellor Angela Merkel bringing home a document that shows she is pressuring other European nations to be as financially prudent as Germany.

Many observers say she needs this to be able to address the growing discontent in her country at the fact that German taxpayer money is being used to bail out troubled euro-zone countries.

Finnish Foreign Minister Erkki Tuomioja even went as far as to tell reporters that the fiscal pact is “at best unnecessary and at worst damaging.”

“We are working on it because Berlin needs it in its domestic politics,” he said.

Mario Monti, Italy’s prime minister, described the docu-

13

The opposition has accused Prime Minister Tusk of kissing up to Angela Merkel ment as little more than “a decorative songbird.”

Indeed, some economists have voiced concern that at a time of widespread crisis too much fiscal discipline and austerity could increase the possibility of recession, which in turn would make it harder to balance budgets in the long run.

A stubborn headache Moreover, Greece, the main actor in the euro zone’s debt drama, has again taken center

stage. The battle drags on between Athens, its EU and IMF rescuers, and the holders of Greek bonds, over debts to private creditors.

The Greek economy has not improved since last year.

On the contrary, it’s doing much worse and the financial hole it is in is becoming ever deeper.

Ms Merkel appears to be in no mood to help create another rescue package and Greece’s government is being criticized

in Europe for having failed to even embark on important reforms and for relying on heavy taxation of its citizens to reduce its deficits. Holders of Greek bonds do not want to take further losses on their investments.

If no deal is in place by March 20, when Greece’s next big bond payment is due, the country is likely to be forced into an uncontrolled default and bankruptcy. This could lead to its exit

from the euro zone.

Most experts fear the chaos and contagion that would ensue from such a scenario could lead to a collapse of the single currency, especially as little progress has been made on building financial buffers around big economies that have major debt problems, like Italy and Spain.

In the event of such a catastrophe, last week’s fiscal pact is not likely to make much difference. ●

Spó∏ka Energetyczna Jastrz´bie, which belongs to coal miner JSW, has announced a tender for the construction of a unit generating around 75MW of power at the site of the Elektrociep∏ownia Zofiówka power station, Parkiet reported.

Construction is due to begin in the first half of 2013, and is expected to be completed by 2015.

The project, whose value is estimated at around z∏.635 million, is aimed at making JSW a selfsufficient producer of energy.

Protests in Moscow As WBJ went to press, a pro-democracy rally and pro-government counter-demonstrations were expected to bring several thousand of people to the streets in Moscow over the weekend. Russia has seen repeated protests over the last few weeks, but current Prime Minister Vladimir Putin is widely expected to win the upcoming presidential election, scheduled to take place on March 4. ●

Legal Eye

The European Stability Mechanism Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com Last week the 17 member countries of the euro zone signed the European Stability Mechanism (ESM), creating a new financial institution based in Luxembourg to act as a firewall against a worsening of the sovereign debt crisis in Europe. In the lead-up to adoption of the ESM by the euro-zone member states, EU member states (with the notable exception of the UK) called for adoption of the ESM.

What is it?

The ESM signed last week is in fact an amendment to the current European Stability Mechanism, adopted earlier in 2011. Following initial agreement in 2010 to bailout Greece, the euro-zone member states pledged €440 billion to fund the Financial Stability Facility to provide monetary assistance to member states experiencing a

budgetary crisis, the predecessor to the current ESM. The new ESM increases the capitalization of the Luxembourg financial institution to €700 billion, of which €500 billion will be available to euro-zone member states that need assistance.

Equally important to the increase in available funding, the ESM also provides for a wider range of financial assistance. Previously, financial assistance was limited to lending money to member states.

The new ESM expands the type of financial assistance available to member states to include not only loans, but also funding in the form of precautionary financial assistance and funding to recapitalize member states’ financial institutions.

Also, the ESM will for the first time enable EU funds to be used to purchase bonds issued by euro-zone member

states on both the primary and secondary markets, some having a maturity up to 30 years. Under the ESM, decisions to grant funding to an individual member state will now be made by a qualified majority vote (85 percent) as opposed to unanimous consent.

pay” by member states if additional cash is needed to fund future requests for help.

Funding will be provided by euro-zone members in exchange for shares in the Luxembourg financial entity established to administer the ESM.

Euro zone Who pays?

Poland and the other member states that are not in the euro zone are not required to contribute anything to the ESM. Conversely, neither is Poland able to seek help from the ESM. Germany, France and Italy will collectively fund nearly two-thirds of the ESM, with the balance being shared by the remaining 14 euro-zone member states. In reality, only €80 million will in fact be paid into the ESM stability fund, while the remaining €620 million will be the form of a “promise to

Euro-zone member states are required to cap their annual budget deficits at 3 percent of GDP and debt at no more than 60 percent. Historically, compliance has been based upon self reporting by each member state, which, to put it bluntly, has allowed member states to ignore the Maastricht requirements without fear of punishment.

Following the bailout of Greece, the German government proposed to put some teeth into the Maastricht Treaty by imposing penalties on member states that flout

the fiscal requirements, but to date no agreement has been reached to adopt the German proposal. Why would they? After all, at present at least 21 of the 27 EU member states do not satisfy the criteria for membership in the euro zone, including the majority of those countries already using the common currency.

Contrary to what some commentators have said, the ESM does not impose sanctions on euro-zone member states in breach of the eurozone requirements. The ESM does, however, impose stiffer requirements on those member states that seek funding from the stability fund.

What about Poland?

In comparison to Ireland and most other euro-zone states, Poland can head high. Even

Greece, of the member hold its though

Poland is not a member of the zone, at least not yet, in reality it comes closer to satisfying the criteria for membership than most of the 17 current euro-zone members.

Poland has a current budget deficit of approximately 7.9 percent, while many eurozone members have a budget deficit over 10 percent. With respect to government debt, the differences are even more striking. Poland has a government debt of approximately 55 percent, while Greece and Italy each have debt exceeding 100 percent of their GDP.

What next?

The ESM, although signed by each of he 17 euro-zone member states, must still be ratified by each government to take effect. Assuming the ESM is ratified by each government, funding under the program should become

14

INTERVIEW

www.wbj.pl

FEBRUARY 6-12, 2012

European Union

Tadeusz Mazowiecki, Poland’s first postcommunist prime minister and a current adviser to the president, talks to WBJ about the situation in Europe and Poland’s European policy Ewa Boniecka: As a former special United Nations envoy sent to observe the tragic conflicts in the Balkans in 19921995, how do you assess the fact that Croatia will now likely be joining the European Union in July 2013?

Tadeusz Mazowiecki: I am very satisfied that the majority of Croats expressed support for the country’s entry into the European Union. It is understood, taking into account the history and the current mood in the country, that Croatia sees its future in the European Union. This is a very positive sign because I am convinced that the future of all Balkan countries, and the healing of injures that happened during the dramatic conflicts there, can occur within the European Community.

I have great hopes that the other Balkan countries, first in the form of association, later through other means, move close to the European Union.

I’m thinking about Bosnia

especially here, since in a certain sense it is the crucial country for illustrating the problems of the region. There is a need for coexistence between the different nations and groups in order to establish proper relations between them. I think that giving all Balkan countries real prospects for close association with the European Union would help to speed up that region’s process of democratic stabilization and serve the interests of the EU as the whole.

Yet the EU, which is now beset with a deep internal crisis, is not very keen on thinking about further enlargement, with even the idea of establishing a strategic partnership with Ukraine – an aim Poland was hoping to achieve during its presidency – appearing to be fading. How do you view the outlook for building closer relations between the EU and Ukraine?

If the outlook for establishing a strategic partnership between the EU and Ukraine is fading, the reasons for this are in Ukraine, not in the European Union. This is because the European Union requires the acceptance of certain standards, not only economic ones, but also with respect to the rule of law, human rights and political freedoms. And it is here, unfortunately, that Ukraine has not made any progress lately. Indeed, on the contrary, it has even moved backwards.

I think that the most drastic example of this is the issue of putting former Prime Minister Yulia Tymoshenko in prison after her trial, which to a significant degree had the character of a political trial. So the further shape of relations between the European Union and Ukraine depends on the development of the situation in that country.

Do you think that the dream of European unity and Poles’ enthusiasm for the European Union are diminishing ?

I do not think that there has been a decisive reversal. If we put aside the exploitation of

the current crisis in the EU and our internal political battle, and if we take into consideration the feelings of ordinary people, I would say that there is now a certain changing of moods due to so much talk about crisis.

Certainly the people know that in many EU countries there has been a serious drop in economic development, that there is a financial crisis in the euro zone. This has had a psychological effect on Poles, but I do not think it has had a fundamental influence on our attitude towards the European Union, which remains positive. There is a deep-rooted social awareness that the future of Poland is linked with the European Union, and the young generation does not remember the time when we fought for our membership of the EU, and treats it as a natural thing.

How do you view the leading role of Germany and France in the EU and in creating the treaty for fiscal union in Europe?

I have always thought that the Franco-German-Polish line of cooperation is fundamental

COURTESY OF TADEUSZ MAZOWIECKI

A European ‘realist’

Former Prime Minister Tadeusz Mazowiecki says there needs to be a “balance” of leadership in the EU for Europe and the EU. So my view now is that this line has to be lengthened to include Poland in reality. The Weimar Triangle is in essence a forum of consultation in a triangle comprising France, Germany and Poland. But it has to be understood not as a decoration, but as an essential element of European policy.

Recently Prime Minister

Donald Tusk said that an agreement between Rome and Warsaw could supplement the Berlin-Paris line. I think that this was a very good diplomatic step because on one side it is an acknowledgment of the reality that Germany and France have crucial meaning in Europe, but on the other, it is a signal that they have not been given leadership of the EU for

INTERVIEW

FEBRUARY 6-12, 2012

ever and in all matters. The point is to keep a balance in the EU, which is very necessary.

How can Poland make the Weimar Triangle a key vehicle for shaping European policy and strengthening its influence in the EU? Let’s remember that when the European Union opened its doors to Poland and other countries in Central and Eastern Europe, there was a real change in the character of the Union, from being a Western European grouping to becoming a real European Union. So in the present EU of 27 members, there are also significant numbers from our region of Europe – in which Poland is the biggest country.

Our participation at the top of the EU therefore has essential meaning for shaping the development of the whole Union.

The EU has attacked Hungarian Prime Minister Viktor Orban’s policies, accusing him of violating the independence of the central bank, for example. Prime Minister Tusk, meanwhile, has said that Poland would support Hungary politically and has even remarked that some of the EU’s accusations are exaggerated. What is your view?

I share Prime Minister Tusk’s opinion that there is a certain exaggeration in the attacks on Hungary, but one needs to look at the exact meaning of the prime minister’s remarks and not read too much into them. All he said was that it is not necessary to use so many exaggerated accusations towards Hungary.

Let’s also remember that in the EU, when issues arise concerning a member’s internal situation, a very sensitive problem arises. On one hand, some EU members want to make sure there is not a precedent for the violation of EU principles – and they have the right to speak out against such behavior. On the other hand, it is important to preserve a certain moderation in the criticism and to not humiliate a partner, even in a situation where there may be reason for concern.

How should Poland conduct preparations for entering the euro zone, and do you think that Poles are ready to accept the single currency?

Poland is required to eventually adopt the euro by its accession treaty. And, in due course Poland should adopt the single currency, because it is in Poland’s interest. But I think a broad debate on adopting the

euro is needed, because society should be prepared to take such a step.

Do you think, as some are saying, that if the EU does not resolve its present crisis, it will break up and collapse?

I believe the alarmist voices expressing this possibility are exaggerated, not only because Europe has overcome many crises, but first and foremost because all Europeans know how valuable the EU is and what a terrible loss its breakup would be. In my view, Europeans do not want the collapse of the EU and a return to the “Concert of Powers” and the hostile rivalry between European countries.

Even those who present the vision of the Union’s collapse are aware of the value of the EU. I have to stress that I am not a supporter of simple descriptions of the European Union. I subscribe to the formula which was once

“Now, the EU needs more integration” expressed by Jacques Delors, who said the Union is a “sui generis” creation. And indeed it is a unique creation. Now, the EU needs more integration and if any new institutions are created inside the EU, they should not break the Union into two separate parts.

While looking now at the changes in the EU and the present crisis, are you still optimistic about the EU’s future?

I smile when I hear that question, because in matters relating to the European Union, I am always asked whether I am an optimist or pessimist. I always answer as I will answer you now: I am a realist. I think that the Union has to deal with its present difficulties and financial crisis, while it must also draw conclusions from these experiences. In my opinion these conclusions should not only apply to the fact that the governments must absolutely abide by measures of financial discipline, but also to the issue that forces that are beyond the control of democratic societies – namely the participants of financial markets – do not replace democratic order. A remedy has to be found to ensure that – this is not easy, but is worth being conscious of.

Poland’s foreign policy in general, and its European policy

in particular, have been criticized strongly by opposition parties PiS and Solidarity Poland, which have both accused the government of “selling Poland’s independence” and succumbing to the rule of the EU. What is your view on their opposition?

I see it as misleading public opinion, but then the opposition is the opposition.

Nonetheless, I would prefer that the opposition would not turn to such statements, which have no basis in reality. It is a bad play on emotions.

The US’s security strategy suggests strongly that it will concentrate on developing its relations with Asian countries, with European states relegated in importance as a result. How do you view the outlook for transatlantic relations?

Poland has many times underlined that along with the development of the European Union, it is important to develop transatlantic relations, and that, for Europe’s security, it is a crucial problem. Indeed, the alliance and the close cooperation between Europe and the US is essential for our security.

In the present time, with the growth of the United States’ interest towards other regions, and especially Asia, Europe has to think more about fulfilling its own obligations, about putting security matters on two legs: not only on the Atlantic one, but also on a European one.

The crucial organ of our common security is NATO and Europe has to be an effective ally for the US within this organization, not only count on the American umbrella for defense.

Yet many Europeans had doubts about American actions in Iraq and also about NATO operations in Afghanistan, and generally about the evolution of NATO that has seen it become increasingly willing to conduct operations beyond the borders of member countries. Will differences in attitudes between the US and Europe remain?

NATO has been evolving since the end of the Cold War and will probably evolve further, but the crucial thing is that the essence of the treaty is never questioned. There could be various different moments and moods in NATO, but the essence of the North Atlantic Treaty – the common defense of the members of the treaty – should remain unchanged.

Also, the close relations between Europe and the United States will never be questioned because they determine security and peace in that part of the world. ●

www.wbj.pl

15

Warsaw has come in third in a ranking of European cities with the best prospects for property investment 17

Orco’s deputy CEO Nicolas Tommasini speaks about Z∏ota 44 and other projects in Warsaw

18

LOKALE IMMOBILIA

Nordea in Skanska’s Green Corner Developer Skanska Property Poland has signed a lease agreement with Nordea Group for approximately 7,000 sqm of space in building A of its Green Corner office complex in Warsaw.

Colliers International brokered the transaction.

The Green Corner complex is being developed at the intersection of ul. Wronia and ul. Ch∏odna in Warsaw’s Wola district.

The seven-storey development will comprise two buildings with a total of 27,000 sqm of GLA. Construction launched in February 2011 and is scheduled to finish by the end of this year.

Citibank at UBP scheme in ¸ódê Citibank International PLC is the latest tenant in developer Globe Trade Centre’s University Business Park office project in ¸ódê. The company has taken up 2,000 sqm in the scheme, also securing an extension option. The first of a planned two buildings in the complex, which was completed in 2010, offers 18,500 sqm of office space and parking spaces for 300 cars. ●

In this issue Wola offices . . . . . . . . . . . . . . . .16 Investment prospects . . . . . . .17 Griffin in Warsaw . . . . . . . . . . . .17 Property-related stocks . . . . . .17 Orco interview . . . . . . . . . . . . . .18 Złota 44 topped out . . . . . . . . . .18

•

FEBRUARY 6-12, 2012, LI 17/05

Office locations

Wola becoming new office hot spot in Warsaw Existing stock in the district could double before the end of 2014 The Wola district of Warsaw has seen a growing number of new office projects launched in recent months, with real estate market analysts saying the area is quickly becoming one of the hottest business locations in the Polish capital.

Though Wola’s total existing office stock, at over 260,000 sqm according to data from Cushman & Wakefield, now amounts to just slightly more than 25 percent of that in Mokotów (over 950,000 sqm), that figure should double by the end of 2014 after the completion of several ongoing and planned schemes.

“In the future, thanks to the development of the second subway line, Wola, and in particular those parts of it which lie close to downtown, have a chance to become a second business center in Warsaw,” said Boles∏aw Ko∏odziejczyk from the valuation and advisory department of C&W. Admittedly, Wola has not yet caught up with the popular Mokotów district in terms of its attraction of new office investments. This is because there is still much more postindustrial land offered for sale in Mokotów, said Joanna Mroczek, director of research and consultancy at CBRE. She added that the success of the developers already present in Mokotów is drawing new investors to the district.

“Wola is mainly perceived as a residential area, and that kind of investment dominates there,” Ms Mroczek said.

However, the trend is changing, with the launch of construction on Warsaw’s second subway line having already resulted in a visible

COURTESY OF JONES LANG LASALLE

COURTESY OF SKANSKA PROPERTY POLAND

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

Wola Center is one of the largest office projects currently being built in Warsaw’s Wola district uptick in office development activity in the area around Wola’s Rondo Daszyƒskiego roundabout.

Projects galore “The [so-called] ‘near Wola’ is today, next to Mokotów and the areas along Al. Jerozolimskie, one of the most dynamically developing office markets in Warsaw,” Cushman & Wakefield’s Ko∏odziejczyk said.

He pointed out that just in the area lying between the district’s ul. Grzybowska, ul.

Przyokopowa, ul. Karolkowa and ul. Hrubieszowska, there

are currently four major office developments under construction.

The Wola Center, Karolkowa Business Park, Concept Tower and Grzybowska 81 investments will deliver a total of approximately 60,000 sqm of space. The usable space of the Warsaw Spire tower being built nearby will amount to almost 100,000 sqm.

A number of other skyscraper projects have already been announced in the same area.

Wola's office pipeline Selected under-construction and planned office projects located in Warsaw's Wola district Project

Planned completion date

Office area (sqm)

Wola Center

Q3 2013

27,572

Atrium I

Q4 2013

16,282

Karolkowa Business Park

Q2 2013

15,320

Vector

Q4 2012

12,390

Wolska Business Center

Q4 2013

11,752

Park West I

Q4 2013

11,350

Grzybowska 81

Q1 2013

9,800

Concept Tower

Q4 2012

Continued on p. 17 ➡

8,464 Source: Emmerson

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

FEBRUARY 6-12, 2012

LOKALE IMMOBILIA – REAL ESTATE

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Apsys-managed malls with BREEAM

Karolkowa Business Park will deliver 15,320 sqm of office space in Q2 2013 ➡ Continued from p. 16 Micha∏ Lis, senior consultant in the office department of Jones Lang LaSalle, noted that Wola attracts tenants’ attention due to its convenient transportation links and relatively low rents.

“In the ‘near Wola’ area monthly rent rates amount to €18-21 per sqm, which is up to 25 percent less than the rates which the office buildings located in the very center of Warsaw feature,” Mr Lis said.

Wola has already become a major banking center, with seven banks having their offices in the district. Cushman & Wakefield’s Ko∏odziejczyk noted that two more banks – Idea Bank and Bank Polskiej Spó∏dzielczoÊci – will

be among the tenants of the new Wola schemes.

Moving west If Wola’s development boom mostly affects its areas that lie closest to Warsaw’s Central Business District, developers are expected to gradually venture farther and farther west as construction on the capital’s second subway line advances.

According to a recent report by real estate company Emmerson, new office projects will likely be developed in the vicinity of the planned subway stations, on, among other streets, ul. Górczewska, which links Wola with the western Bemowo district.

“Thanks to the under-construction infrastructure projects, Wola is bound to be

attracting more and more tenants. The key issue will be the availability of plots offered at affordable prices,” CBRE’s Mroczek noted.

She added that there is considerable potential for business-park development along Wola’s Al. Prymasa Tysiàclecia and ul. Jana Kazimierza. Land that will gradually be sold by Polish State Railways and other stateowned firms also offer a great deal of potential, she said.

“If courageous investors appear, Wola will have a chance to become a fully developed district from the urban planning point of view, both in terms of residential and commercial space,” Ms Mroczek said.

Adam Zdrodowski

Warsaw third in Europe in terms of property investment prospects longer looking for markets that offer prospects for dynamic development, since that goal may not be achievable, but [are instead looking for] ones that are safe havens in uncertain times,” Kinga Barchoƒ, director of PwC’s real estate team, said in a statement.

In terms of investment in new projects and prospects for development activity, Warsaw came in sixth and fourth in the ranking, respectively. The most attractive type of investments in the city, the polled investors said, will in 2012 be office

schemes (42 percent of respondents), followed by retail spaces (37 percent).

“Investors anticipate the city’s increasing prominence as the financial center for the Eastern European region, boosting the city’s office sector. Its retail sector is also highly favored as the city has attracted international retailers. Extremely low retail vacancy rates and limited supply will keep this sector strong,” PwC and the Urban Land Institute said.

Adam Zdrodowski

COURTESY OF WIKIMEDIA COMMONS

Warsaw currently has the thirdbest prospects for investment in existing property in Europe, according to the recent “Emerging Trends in Real Estate Europe 2012” survey by PwC and the Urban Land Institute. The city, which ranked seven places higher than last year, decisively beat its CEE peers with Prague and Budapest coming in 14th and 24th place respectively, the study said.

“The economic crisis has changed the attitude towards investments – investors are no

Warsaw now has some of the most attractive existing investment properties in Europe

Three existing Polish shopping center projects – Dom Mody Drukarnia in Bydgoszcz, Centrum Handlowe Krokus in Kraków and Pasa˝ ¸ódzki in ¸ódê – last month obtained BREEAM In-Use certificates. The malls are owned by special purpose vehicles belonging to IVG Development, GE Capital Real Estate and Pradera Europe, respectively, and are all managed by Apsys Polska.

which it is developing a luxury estate of single-family houses.

In autumn last year, the firm acquired an additional seven plots on which a total of almost 150,000 sqm of residential and commercial space can be built.

“We are committed to building Griffin’s strong position in the Polish investment real estate market and the acquisition of Prima Court is yet another investment that we are planning to complete in the near future,” Griffin Group CEO Przemys∏aw Krych said in a statement.

“In 2012, we plan to invest large sums in properties located in major Polish cities,” Mr Krych added.

NoVa Park mall 80% leased out

Adam Zdrodowski

COURTESY OF COLLIERS INTERNATIONAL

COURTESY OF KOSTRZEWA PR

Griffin Group buys Prima Court office building in Warsaw Real estate investor Griffin Group has acquired the Prima Court class-A office building in Warsaw from RE Polish Property. The value of the transaction, in which the buyer and the seller were respectively advised

by Colliers International and Jones Lang LaSalle, has not been revealed.

The acquisition of the development, which is located on ul.

Nowogrodzka in the capital’s Central Business District, marks the continuation of Griffin Group’s strategy of building a diversified portfolio of properties located in major Polish cities.

In late 2010, Griffin Group bought 37 hectares of land in Warsaw’s Wilanów district on

17

The Prima Court acquisition is part of Griffin’s expansion plans

The under-construction NoVa Park shopping center project in the western Polish city of Gorzów Wielkopolski is now 80 percent commercialized. Home decoration chain Home&You is the latest tenant in the scheme, taking up over 250 sqm of space. NoVa Park is being developed by Irish firm Caelum Development and Hungarian Futureal. ●

Property-related stocks Security

Closing price on Feb 2

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

84.50

5.62

64.00

109.20

-13.69

25,530,098

2,157.29

CELTIC

17.30

10.19

15.55

24.89

-8.61

34,068,252

589.38

DOMDEV

33.95

7.44

23.50

50.80

-28.07

24,560,222

833.82

ECHO

3.99

3.64

3.05

5.55

-11.73

420,000,000

1,675.80

ELBUDOWA

100.00

-1.86

87.00

168.60

-40.41

4,747,608

474.76

ENERGOPLD

2.00

-0.50

1.81

4.10

-47.51

70,972,001

141.94

ERBUD

20.25

9.76

14.65

51.75

-60.33

12,644,169

256.04

GANT

8.43

2.06

5.85

16.60

-48.78

20,499,953

172.81

GTC

10.13

-0.20

7.91

21.79

-51.58

219,372,990

2,222.25

HBPOLSKA

1.07

15.05

0.70

2.79

-57.87

210,558,445

225.30

JWCONSTR

7.43

-2.88

4.36

15.50

-47.64

54,073,280

401.76

LCCORP

1.15

2.68

0.85

1.69

-23.33

447,558,311

514.69

MARVIPOL

9.73

2.96

7.22

9.95

10.19

36,923,400

359.26

MIRBUD

2.39

6.22

1.94

4.75

-45.06

75,000,000

179.25

MOSTALWAR

20.15

3.33

15.40

49.00

-57.72

20,000,000

403.00

MOSTALZAB

1.64

-0.61

1.07

3.00

-37.64

149,130,538

244.57

ORCOGROUP

18.04

16.39

14.00

40.00

-41.24

17,053,866

307.65

PBG

81.80

1.61

56.05

207.00

-60.27

14,295,000

1,169.33

PLAZACNTR

2.41

-4.74

1.80

5.15

-41.93

297,174,515

716.19

POLAQUA

6.93

26.00

4.53

20.60

-65.86

27,500,100

190.58

POLIMEXMS

1.86

7.51

1.23

3.76

-50.40

521,154,076

969.35

POLNORD

17.11

-0.12

11.03

33.55

-47.48

23,798,439

407.19

RANKPROGR

11.99

16.41

8.60

13.60

15.62

37,145,050

445.37

ROBYG

1.29

1.57

1.04

2.13

-28.33

257,390,000

332.03

RONSON

0.90

0.00

0.77

1.58

-39.19

272,360,000

245.12

TRAKCJA

1.25

2.46

0.65

3.87

-66.12

232,105,480

290.13

ULMA

57.25

-5.53

57.00

88.00

-26.60

5,255,632

300.88

UNIBEP

6.14

-1.92

4.47

9.94

-36.90

33,927,184

208.31

WARIMPEX

4.49

18.16

2.95

10.89

-54.42

54,000,000

242.46

ZUE

7.95

7.87

5.07

14.54

-44.01

22,000,000

174.90

18

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Ronson’s Naturalis III apartments on sale

Inpro finishes Trzy ˚agle Warsaw Stock Exchange-listed developer Inpro is turning over apartments in the last phase of its Trzy ˚agle residential project in Gdaƒsk. Twenty-two units – out of a total of 406 that have been built in the whole complex – remain on sale. Located on Gdaƒsk’s ul. Olsztyƒska, the Trzy ˚agle investment is composed of three 18-storey buildings comprising apartments sized from 31-105 sqm. ●

Skyscrapers

Turning a setback into a success Lokale Immobilia sits down with Nicolas Tommasini, deputy CEO and CFO of developer Orco Property Group, to talk about the company’s delayed Z∏ota 44 skyscraper project in Warsaw and the firm’s plans in the Polish market

COURTESY OF ORCO PROPERTY GROUP

Warsaw Stock Exchange-listed developer Ronson Development has launched sales of apartments in the third phase of its Naturalis multi-family residential project in ¸omianki near the Polish capital. The Naturalis III scheme, construction on which commenced in December last year, will comprise 60 units sized from 32-80 sqm and currently priced from z∏.5,500 per sqm.

FEBRUARY 6-12, 2012

Adam Zdrodowski: Z∏ota 44’s building permit has recently been upheld in court, putting an end to years of legal wrangling over the project. The decision has come rather late, though, considering the tower has just been topped out ...

Nicolas Tommasini: Still, this is very good news for us as it means the building will certainly be built. The decision has helped secure financing for the project and will be crucial for sales as it shows potential buyers that buying an apartment in Z∏ota 44 is a safe investment.

Have the problems that occurred during the development process of Z∏ota 44 changed your perception of the attractiveness of the Polish market?

They have not made us think that Warsaw does not have a friendly business environment.

The delay in construction was caused by neighborhood protests and administrative mistakes but I must stress that we got lots of support from the Warsaw City Hall throughout that time.

Of course, it all cost us time and money but we were able to benefit from the setbacks as well. While construction was on hold, we improved the project and signed a new general contractor agreement, managing to lower the construction cost of Z∏ota 44.

How many apartments in the skyscraper have you sold so far?

So far, we have sold almost 30 percent of the apartments.

Now that the structure is ready, financing is in place and the building permit has been confirmed, the sales process should accelerate. We expect that the considerable buyer interest which is there will soon translate into new transactions.

On the other hand, we are not under pressure to sell.

Z∏ota 44 apartments are a luxury product and we want to get the right price for them. We also want to sell them to the right people, who will form an elite local community; we won’t be interested in selling to investment funds.

Construction on another tower with luxury apartments, the Cosmopolitan Twarda 2/4, is now underway in central Warsaw. Do you view that project as a serious competitor for Z∏ota 44?

We do not see the Cosmopolitan Twarda 2/4 as a competitor. Their residential concept has not been disclosed. Construction on that tower is far less advanced and the building is actually a mixed-use scheme that will also feature hotel and office space. We believe that Z∏ota 44 will long remain the top residential building in Warsaw.

Orco has signaled before that it plans to build another skyscraper in the Polish capital. Can you reveal any new details of that investment?

All I can say is that we are working on another project in a prestigious location in downtown Warsaw.

We are considering a mixed-use investment that apart from apartments would also comprise commercial

space. These plans are not for the nearest future, though. For now, we are focusing most of our attention on the completion of Z∏ota 44.

It has been speculated that the second tower could be located on the site of Warsaw’s Holiday Inn hotel which neighbors the Z∏ota 44 plot ...

These are pure speculations and we have nothing to say about them. ●

Orco tops out Z∏ota 44 skyscraper in Warsaw Developer Orco Property Group last week topped out its Z∏ota 44 luxury residential high-rise project in Warsaw, the company’s flagship investment in the Polish market.

Construction on the 54th and final floor of the tower has been completed, bringing the building’s height to almost 190 meters. Structural work has come to an end with 80,000 metric tons of concrete and 6,600 tons of structural steel having been used in the process.

In the upcoming months,

work on the interiors, as well as on the skyscraper’s facade is set to continue, with most of the latter scheduled to be completed by the summer.

The first residents are expected to move into Z∏ota 44 in January 2013.

Construction on Z∏ota 44 resumed at the beginning of 2011 following a period of more than a year during which no work was carried out, due to neighborhood protests and the subsequent revocation of the project’s AZ building permit.

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MARKETS

FEBRUARY 6-12, 2012

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,705.41 (Feb 2 close)

S&P500

2,859.68 (Feb 2 close)

5.97% (for the week)

FTSE100

1,325.54 (Feb 2 close)

1.94% (for the week)

DAX

5,796.10 (Feb 2 close)

0.54% (for the week)

0.02% (for the week)

WIG holds its ground

NIKKEI225 6,655.63 (Feb 2 close)

8,876.82 (Feb 2 close)

1.77% (for the week)

0.31% (for the week)

CHANGE: 2.48%

CHANGE: 7.96%

CHANGE: 3.80%

CHANGE: 1.69%

CHANGE: 9.55%

CHANGE: 3.70%

(year to Feb 2 close)

(year to Feb 2)

(year to Feb 2)

(year to Feb 2)

(year to Feb 2)

(year to Feb 2 )

52-week high: 12,876.00

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: 10,404.49

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.01

52-week low: 4,965.80

52-week low: 8,227.63

Andrew Nawrocki, WBJ market analyst It was another strong week for the WIG and WIG20, with both indices closing higher each day. Despite poor sentiment surrounding Greek and Portuguese debt at the start of the week, on Monday, January 30 Polish indices were among five in Europe to close higher.

Leading in gains were shares of TVN (2.5 percent) and Tauron (2.1 percent).

Tuesday, January 31, saw European shares regain some losses from the previous day, after hopes for a Greek debt deal – yet again – resurfaced.

Stocks rose across the board for most of the day, though gains were thwarted in latetrading after poor economic data from the US was released. The WIG ultimately finished 0.8 percent stronger, while the WIG20 saw a 0.67 percent rise.

Shares of Getin and JSW saw the most action, both closing higher by 5 percent.

Major indices WIG

41,602.24 (February 2 close)

WIG20

2,371.09 (February 2 close)

02.02

01.02

31.01

30.01

27.01

26.01

25.01

24.01

23.01

20.01

19.01

18.01

17.01

02.02

01.02

31.01

30.01

27.01

26.01

25.01

24.01

23.01

2,100

20.01

37,000

19.01

2,160

18.01

38,000

17.01

2,220

16.01

39,000

13.01

2,280

12.01

40,000

11.01

2,340

10.01

41,000

09.01

2,400

05.01

42,000

16.01

52-week low: 2,089.84

13.01

Change year to February 2: 8.07%

12.01

52-week low: 36,549.47

11.01

52-week high: 2,932.62

Change year to February 2: 8.57%

10.01

Change for the week: 2.84%

09.01

52-week high: 50,371.74

05.01

Change for the week: 3.00%

Top 5 BIOTON NTTSYSTEM DSS CEDC ONE2ONE

Closing 0.11 0.89 8.45 17.29 3.26

% change (week) 52-week high 57.14 0.19 36.92 1.13 36.29 23.75 34.97 69.9 34.71 7.29

52-week low 0.06 0.41 5.22 9.27 2.04

Top 5 GETIN KGHM POLIMEXMS PKNORLEN TVN

Closing 2.51 143.10 1.86 38.88 11.22

% change (week) 13.06 8.49 7.51 5.08 4.37

52-week high 15.29 200.30 3.79 58.85 18.53

52-week low 2.01 102.40 1.19 30.33 8.90

Bottom 5 PRONOX INTAKUS DREWEX MONNARI SOBIESKI

Closing 0.09 0.84 0.21 1.13 283.10

% change (week) -10.00 -8.70 -8.70 -8.13 -8.08

52-week low 0.08 0.61 0.16 0.70 113.00

Bottom 5 TPSA PGE GTC ASSECOPOL BRE

Closing 17.19 20.15 10.13 47.71 295.50

% change (week) -2.83 -1.52 -0.20 -0.15 0.00

52-week high 19.19 25.07 21.79 54.55 357.90

52-week low 14.30 15.98 7.86 34.5 203.30

52-week high 1.54 1.53 1.87 4.59 368.50

sWIG80

9,561.70 (February 2 close)

Change for the week: 2.77%

52-week high: 2,987.72

Change for the week: 3.53%

Change year to February 2: 8.98%

52-week low: 2,076.52

Change year to February 2: 11.13%

WIG-Banki

02.02

01.02

31.01

30.01

27.01

26.01

25.01

24.01

23.01

20.01

19.01

17.01

16.01

13.01

12.01

11.01

10.01

09.01

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

05.01

02.02

01.02

31.01

30.01

27.01

26.01

41.63 (February 2 close)

52-week low: 8,218.71

6,093.46 (February 2 close)

02.02

01.02

31.01

30.01

27.01

26.01

25.01

24.01

23.01

20.01

19.01

18.01

05.01

02.02

01.02

31.01

30.01

27.01

26.01

25.01

24.01

23.01

5,200

20.01

40.0

19.01

5,400 18.01

40.4

17.01

5,600

16.01

40.8

13.01

5,800

12.01

41.2

11.01

6,000

10.01

41.6

09.01

6,200

05.01

42.0

17.01

52-week low: 4,944.19

16.01

Change year to February 2: 9.93%

13.01

52-week low: 40.23

12.01

52-week high: 7,387.49

Change year to February 2: 0.34%

11.01

Change for the week: 3.04%

10.01

52-week high: 60.03

09.01

Change for the week: 0.80%

SOURCE: WSE

NewConnect

25.01

24.01

23.01

8,500 20.01

2,100

19.01

8,720

18.01

2,160

17.01

8,940

16.01

2,220

13.01

9,160

12.01

2,280

11.01

9,380

10.01

2,340

09.01

9,600

05.01

2,400

Z∏oty a top performer

52-week high: 12,932.00

18.01

2,387.02 (February 2 close)

The first day of February started off well, with indices throughout Europe closing with gains. Driving shares higher were upbeat global manufacturing data from China and Germany, as well as optimistic words from Greece’s finance minister.

The WIG finished its strongest day of the week, gaining 1.25 percent.

On Thursday, February 2, shares continued their upward climb, with merger news in Europe between Glencore and Xstrata propping up markets. European shares got further support after US unemployment claimants fell more than expected. Both the WIG and WIG20 gained about 0.4 percent.

Friday, February 3 saw milder gains, with the WIG closing 0.31 percent up, boosted by better than expected non-farm payroll figures from the U.S. ●

Currency report

Other indices mWIG40

19

The z∏oty extended the run it had been on since the beginning of the year, appreciating at its fastest rate so far last week. Moreover, the market doesn’t seem to be giving any signals that a corrective movement is in store. Macroeconomic news from the US (ISM index and labor market data) and the euro zone (PMI reports) show improvement in the economy.

Lower risk aversion and climbing stock markets are helping the z∏oty. The Polish currency ended another week gaining against the majors, with the EUR/PLN falling to z∏.4.17 (a fivemonth low), USD/PLN to z∏.3.19 (a three-month low) and the CHF/PLN to z∏.3.46 (a four-month low). Howev-

er, the risk of a corrective movement increases as long as the euro-zone debt crisis remains unsolved. Also, a stronger z∏oty means that the chance for an interest-rate hike diminishes, and if members of Poland’s Monetary Policy Council continue to make rather hawkish statements, a corrective movement will become a certainty.

The z∏oty is one of the top-10 best performing currencies in the world so far this year, appreciating almost 8 percent against the US dollar. On top of the list is the Hungarian forint (up 9.5 percent against the US dollar), surprisingly climbing despite the negative atmosphere around the policies of the Hungarian government. ●

currency rates 4.1801

4.2278

4.1995

4.1935

4.2010

4.1792

27.01

30.01

31.01

01.02

02.02

03.02

0.1056

0.1054 03.02

4

SOURCE: NBP

PLN-100JPY

5

02.02

0.1064

0.1056 01.02

31.01

30.01

0.1060 27.01

3.4861

3.4784 03.02

0.10

0.1066

PLN-RUB

0.12

02.02

3.4824 01.02

3.5054 31.01

30.01

3.4966 3.0

27.01

5.0469 03.02

5.0590

3.5

3.5335

PLN-CHF

4.0

02.02

5.0285 01.02

5.0496 31.01

30.01

5.0551 27.01

3.1955

3.1848 03.02

4.5

5.0816

PLN-GBP

5.5

02.02

3.1913 01.02

3.2032 31.01

30.01

3.2163 27.01

4.1995

4.1932 03.02

3.0

3.2433

PLN-USD

3.5

02.02

4.1933 01.02

4.2270 31.01

30.01

4.2223 27.01

4

4.2589

PLN-EUR

5

20

THE LIST

www.wbj.pl

FEBRUARY 6-12, 2012

Motor Industry & Freight

Transport, Shipping and Logistics Ranked by revenue from main activity in 2010

Freight / Warehousing / Customs / Courier

Other

Transport: Road / Air / Rail / Sea

Mass transport / Oversize

Parcels / Customs parcel / Cargo

Selected clients

Freight insurance: TPL / Carrier / Cargo / ISO certificate

Number of branches / Total employees / Year founded

Grupa Raben ul. Poznaƒska 71, 62-023 Gàdki k. Poznania 1 61 898-8000/61 898-8801 marketing@raben-group.com www.raben-group.com

WND 1,255.0 1,108.0 1,062.0

WND WND WND WND

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ -

Contract logistics; comprehensive service for fresh products

✓ ✓ ✓

-

✓ ✓ ✓

WND

✓ ✓ ✓ ✓

44 4,736 1991

None Raben Group - 100%

Ewald Raben

Przedsi´biorstwo Spedycyjne Trade Trans Sp. z o.o. ul. Leszno 12, 01-192 Warsaw 2 22 534-0300/22 534-0400 pstt@tradetrans.pl www.tradetrans.pl

375.4 739.9 577.3 1,303.7

379.0 756.5 439.5 1,325.5

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ -

Reloading; distribution; packing; containers

✓ ✓ ✓ ✓

✓ ✓

✓ ✓

WND

✓ ✓ ✓ ✓

9 362 1990

PKP Cargo Trade Trans Invest

Zbigniew Janicki

DPD Polska Sp. z o.o. (1) ul. Mineralna 15, 02-274 Warsaw 3 22 577-5500/22 577-5550 dpd@dpd.com.pl www.dpd.com.pl

286.9 532.0 470.0 415.0

WND WND WND WND

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

WND

✓ ✓ ✓ ✓

✓

✓ ✓ ✓

TP; Netia; Orange; T-Mobile; LPP; Coty

✓ ✓ ✓ ✓

50 Over 5,200 1991

None GeoPost Group - 100%

Rafa∏ Naw∏oka

Grupa DSV Sp. z o.o. ul. Po∏udniowa 2, 05-850 O˝arów Mazowiecki 4 22 244-7601/22 203-6560 office@pl.dsv.com www.dsv.com/pl

239.0 459.0 404.0 383.0

239.0 459.0 404.0 383.0

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ -

WND

✓ ✓ ✓ ✓

✓ ✓

✓ ✓

WND

✓ ✓ ✓

28 Over 700 1994

None DSV - 100%

Piotr W. Krawiecki

PEKAES SA ul. Spedycyjna 1, 05-870 B∏onie 5 22 460-2626/22 460-2727 kontakt@pekaes.com.pl www.pekaes.com.pl

227.2 415.9 360.2 380.0

365.6 563.8 471.9 511.5

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

WND

✓ ✓ ✓ ✓

✓ ✓

✓ ✓ ✓

WND

✓ ✓ ✓ ✓

17 1,232 1958

KH Logistyka - 58.2%; ING OFE - 7.6%; Bank Gospodarstwa Krajowego - 5% None

GEFCO Polska Sp. z o.o.

Pl. Bankowy 2, 00-095 Warsaw 6 22 531-2177/22 531-2173 siedziba.waw@gefco.pl www.gefco.pl

WND 407.1 331.7 286.8

WND 407.1 331.7 286.8

WND 50,470 42,601 36,887

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ -

Packaging; co-packing

✓ ✓ ✓ ✓

-

✓ ✓ ✓

PSA; Ford; Nissan; IKEA; Whirlpool

✓ ✓ ✓ ✓

7 304 1999

None GEFCO - 100%

Olivier Large

Rohlig SUUS Logistics SA ul. Jana Paw∏a II 66, 05-500 Piaseczno 7 22 737-7575/22 737-7500 office@suus.pl www.suus.pl

WND 403.3 282.0 352.0

WND 403.3 282.0 352.0

WND 542,058 406,394 346,746

✓ ✓

✓ ✓

✓ ✓ -

Cargo projects; Business Process Outsourcing

✓ ✓ ✓ ✓

✓ ✓

✓ ✓ ✓

General Motors; Philip Morris; Masterfood; LG; Philips

✓ ✓ ✓

WND WND 1990

Tadeusz Chmielewski None

Tadeusz Chmielewski

FM Polska Sp. z o.o. (FM Logistic) ul. ¸ugowa 30, 96-320 Mszczonów 8 46 857-0001/46 857-0005 fmlogistics@fmlogistic.pl www.fmlogistic.com

WND 375.4 397.5 568.7

WND 640.3 600.0 575.2

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ -

Co-packing; comanufacturing; consignment warehouse

✓ -

-

-

IKEA; Auchan; Mars; Carrefour; GSK

✓ ✓ WND ✓

9 2,700 1995

None 100%

Piotr Sukiennik

JAS-FBG SA ul. Kolejowa 17, 40-706 Katowice 9 32 359-3593/32 359-3577 marketing@jasfbg.com.pl www.jasfbg.com.pl

192.1 347.1 278.8 275.2

192.1 347.1 278.8 275.2

258,641 486,160 369,482 356,098

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ -

International trade mediation; Intrastat; excise; vignette

✓ ✓ ✓ ✓

✓ ✓

✓ ✓

WND

✓ ✓ ✓ ✓

100 889 1991

100% None

Jaros∏aw Domin

Kuehne + Nagel Sp. z o.o. ul. Spedycyjna 1, 62-023 Gàdki 10 61 819-9100/61 817-0813 info.poznan@kuehne-nagel.com www.kuehne-nagel.pl

WND 342.4 282.2 383.3

WND 342.4 282.2 383.3

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ -

Packing; co-packing; project management; return logistics; Lead Logistics Solution

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Unilever; Danone; Bosch; OBI; Corning

✓ WND ✓ ✓

18 1,800 1991

None WND

Tobias Jerschke

Fresh Logistics Sp. z o.o. ul. Poznaƒska 71, 62-023 Gàdki k. Poznania 11 61 898-8400/61 898-8450 freshlogistics@raben-group.com www.freshlogistics.com.pl

WND 191.1 168.0 148.0

WND WND WND WND

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ -

Comprehensive logistics services in controlled temperatures of 2 to 6 degrees Celsius

✓ -

-

✓ ✓

WND

✓ ✓ ✓ ✓

6 592 2002

None Raben Group - 100%

Ewald Raben; Tomasz Olenderek

CAT LC Polska Sp. z o.o. ul. O˝arowska 40/42, 05-850 Duchnice 12 k. O˝arowa Mazowieckiego 22 721-7800/22 721-7802 handlowy@groupecat.com www.groupecat.pl

WND 171.0 160.0 141.5

WND 171.0 WND 141.5

WND WND WND WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

WND

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

WND

✓ ✓ ✓

9 216 1994

None Manuel Antelo

Business Unit Manager

Rank

Activities: Transport / Shipping / Logistics

Services

National services / International services

Services

www.bookoflists.pl

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

Revenue from main activity (z∏. mln)

Total revenue (z∏. mln)

Total number of dispatches

1st half of 2011 / 2010 / 2009 / 2008

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for the list was conducted in December 2011. Number of employees and ownership structure are as of November 2011 unless stated otherwise. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Footnotes: (1) Consolidated financial data for DPD Polska and ACP (Air Cargo Poland)

Ownership: Polish / Foreign

Top local executive / Title

CEO

President

President

President

Jacek Machocki

General Director

President

General Director

President

President

CEO; Managing Director

Rafa∏ Krajewski

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.

SPORTS

FEBRUARY 6-12, 2012

www.wbj.pl

21

Transfer window

The transfer window for European soccer clubs closed at midnight on January 31 and as always at this time of year there was a flurry of activity as mangers sought to utilize their final opportunity to bring in fresh blood before the end of the season.

Polish striker Pawe∏ Bro˝ek was one player looking to secure more first-team action and the 28-year-old should now have the opportunity after he signed a loan deal with Scottish Premier League giants Celtic until the end of the season. The Kielceborn attacker has enjoyed a less-than-illustrious stint at

COURTESY OF WIKIMEDIA COMMONS+

Several high-profile Polish soccer players have switched clubs

lengthy negotiations, Legia Warsaw defensive midfielder Ariel Borysiuk was purcashed

by German club FC Kaiserslautern for an undisclosed fee. Despite being only 20 years old, the highly-rated youngster, who signed a fourand-a-half-year deal, already has three full international caps and is considered a very strong prospect.

Another young player who could be on the move is Lechia Gdaƒsk’s promising goalkeeper Wojciech Paw∏owski, who has signed a preliminary contract with Italian Serie A club Udinese. The two clubs have yet to reach agreement over a fee but Lechia’s representatives are ready to negotiate and sell the player at the end of the

Pawe∏ Bro˝ek Turkish side Trabzonspor since signing from Wis∏a Kraków back in January 2011.

But the Polish international will now be hoping to follow in the footsteps of his interna-

tional teammate Artur Boruc, who enjoyed a trophy-filled five years at Celtic before moving on to Fiorentina in 2010.

Elsewhere, following

COURTESY OF WIKIMEDIA COMMONS

Polish players on the move

Euzebiusz Smolarek

2011/2012 season.

Finally, former Polish international star Euzebiusz “Ebi” Smolarek has signed for Dutch side ADO Den Haag following his release by

Qatari side Al-Khor Sports Club. The much-traveled striker returns to the Netherlands seven years after he left Dutch giants Feyenoord.

Marcin ¸ojewski

Kamil Stoch leads the way in 2012

Kowalczyk carrying injury

The Polish jumper is quickly moving up the standings

The Olympic Gold medal-winner leads the World Cup standings Polish cross-country skier Justyna Kowalczyk has admitted she is battling on two fronts in her bid to end the 2012 season as World Cup champion.

Not only is the 2010 Olympic Gold medal-winner competing with Norway’s Marit Bjoergen in what looks at this stage to be a two-horse race for the title, but she also revealed to journalists last week that she is having to ski through significant pain, as she has been carrying a knee injury since last June.

The 29-year-old said she should have had the problem operated on last summer but

Kamil Stoch

his home town event on January 20. He followed that up with two second-place finishes in Japan on January 28 and 29.

Although it is unlikely the Polish skier will emulate his

fellow countryman Adam Ma∏ysz and win the overall title this year, it seems Mr Stoch definitely has what it takes to be a champion in the future.

David Ingham

Europa League

Legia prepares for Europa League with Turkey camp

Legia Warsaw players are preparing for their upcoming Europa League match with Portuguese club Sporting Lisbon at a training camp in the seaside town of Antalya, in Turkey.

Legia, which is ranked second in Poland’s Ekstraklasa, is in Turkey because the Polish league is currently taking its annual winter break. On Tuesday, Legia lost 2-1 to Romanian side Steaua Bucharest in a friendly match, but manager Maciej Skor˝a said that despite the

result he was able to take many positives from the game, after Legia improved its performance in the second half.

On Thursday, Legia beat Slovakia’s Spartak Trnava 3:1 in its final match before returning to Poland.

Fellow Ekstraklasa side Wis∏a Kraków has also been in warmer climes, taking part in The Atlantic Cup 2012, in Portugal’s Algarve region.

The other teams involved in the friendly tournament are Croatia’s Dinamo Zagreb, Danish teams Odense BK and FC Midtjylland, Swedish

Legia’s Janusz Gol

side Helsingborg IF, and Austria’s Rapid Vienna.

Wis∏a, which is also through to the last 32 of the Europa League, will take on Belgian side Standard Liege on February 16.

DI

went to press Ms Kowalczyk was leading the World Cup standings, following her victory in Moscow.

DI

PLFA championship to be held at National Stadium COURTESY OF WIKIMEDIA COMMONS

Polish soccer teams are preparing for continental play in warmer climes

decided to delay the procedure until the end of this season in order to be able to mount a challenge for the World Cup title. As WBJ

Justyna Kowalczyk

This year’s season-ending championship game in the Polish American Football League (PFLA) will take place at Poland’s newly finished National Stadium on June 15, the PFLA has announced. Super Final VII will also be televised live, following on from last year’s championship game, which was the first PFLA game to be shown live on Polish TV. This year the PFLA has established a new six-team Ekstraklasa division which will comprise the Devils Wroc∏aw, Koz∏y Poznaƒ, Warsaw Eagles, Kraków Tigers, Gdynia Seahawks,

MARCIN FIJA¸KOWSKI

Based on results so far this year, Polish ski jumper Kamil Stoch is currently the best ski jumper in the world. The 24year-old from Zakopane has had a great start to the new year, having finished in the top 10 in each of the first nine events of 2012.

In the Ski Jumping World Cup, Mr Stoch currently stands in fifth place, but as WBJ went to press he was only 34 points behind fourthplaced Thomas Morgenstern of Austria. The Pole has already made four podiums this year, including victory in

COURTESY OF WIKIMEDIA COMMONS

Cross-country skiing

COURTESY OF FACEBOOK/KAMIL STOCH

Ski jumping

The Crew Wroc∏aw QB Justin Walz scores one of his two rushing touchdowns in last year's Super Final and AZS Silesia Rebels. The first round of matches takes

place on March 24.

DI

22

LIFESTYLE

www.wbj.pl

Concert

FEBRUARY 6-12, 2012

Festival

Indie Valentine alternative The power of love If you’re looking for an alternative to a romantic, candlelit dinner this Valentines Day, then Praga’s Hydrozagadka club could provide the perfect tonic, with a concert from UK indie rock band The Pigeon Detectives.

Formed in England back in 2004, the five-piece group has made three albums, with their last record “Up, Guards And At ‘Em!” released in April, 2011. The band has sold more than 500,000 albums in the UK and has already appeared at the

COURTESY OF WIKIMEDIA COMMONS

The Pigeon Detectives February 14, 8 pm Hydrozagadka ul. 11 Listopada 22 Warsaw

The Pigeon Detectives

Glastonbury Festival. They have also played with bands such as the Kaiser Chiefs and Dirty Pretty Things.

Although not exactly offering anything new to the musical landscape, for fans of catchy,

attitude-driven rock music, this gig is unlikely to disappoint.

Tickets for the event are priced from z∏.35.

DI

For more information log on to hydrozagadka.waw.pl

Hair February 9, 7 pm PKiN, Sala Kongresowa Pl. Defilad 1 Warsaw “Hair,” the world-famous rock musical about hippie counterculture in 1960s America, will be performed at Warsaw’s Sala Kongresowa for one night only, February 9. Since its con-

troversial opening on Broadway in 1968, the show has won numerous awards and has been performed thousands of times all over the world, with a successful movie adaptation also released in 1979.

The musical tells the story of a group of hippies caught up in the sexual revolution and anti-Vietnam War demonstra-

tions of 1960s America. The main character, Claude, is forced to choose whether to heed his parents’ wishes that he join the army and fight in Vietnam or to dodge the draft, as his friends have done. Tickets for the event are priced DI from z∏.35.

For more information log on to kongresowa.pl

D4D

Equal Right to Love Festival VI February 10-19 Various venues across Warsaw Now in its sixth year, the Equal

Right to Love Festival is a LGBT festival aimed at raising awareness of LGBT relationships.

This year’s events will include screenings of Andy

Warhol flicks, volleyball matches, a DragKings show, panel discussions and a concert

by Polish electronic group D4D. David Ingham

Business and pleasure WBJ’s restaurant review feature SomePlace Else ul. Boles∏awa Prusa 2 warszawa.someplaceelse.pl Not many restaurants in Warsaw provide a setting that is as comfortable for a business lunch as it is for after-hours fun, but at the recently renovated SomePlace Else, customers get the best of both worlds.

Located in the heart of the city on ul. Boles∏awa Prusa, just off Plac Trzech Krzy˝y, SomePlace Else offers a wide selection of high-quality dishes, made with fresh ingredients sourced from all over the world. Executive chef Artur Grajber based the menu around his love of Tex-Mex cuisine, with the emphasis on lively flavors developed around a more traditional template.

Standout dishes include the East Meets West Burger, which contains oriental chicken breast, prawns, citrus mayonnaise, ginger, coriander and kumquat chutney, the N-York Steak with an imported

Argentine entrecôte steak marinated in herbs, served with a baked potato and a cajun sauce, or the superb Louisiana Soup with shrimp and chicken.

For those seeking something healthier, Mr Grajber has also developed an alternative, light menu which is changed every two weeks. The light menu consists of a number of original sandwich creations, as well as fish, lean meats and freshly squeezed juices.

However, the new and improved version of SomePlace Else is not only likely to become a firm favorite on War-

COURTESY OF SOMEPLACE ELSE

Rock revolution

COURTESY OF EDYTA R¢BA¸A

Musical

saw’s culinary map, but also a great party destination as well.

In addition to the new, industrial decor and four-sided bar (which offers numerous unique cocktails such as the Warsaw Mudslide and The Alabama Hammer Slammer) there is also regular live music from established stars and upcoming bands.

And for those looking to wind down after a stressful day, then happy hour from 5:30 pm to 7 pm should provide the perfect opportunity, with selected beers, wine and cocktails available at two for the price of one.

David Ingham

SomePlace Else

LAST WORD

FEBRUARY 6-12, 2012

www.wbj.pl

23

Tech Eye

Five years of technological foofaraw five years ago this week.

Anyone? Ok, we’ll give you a hint – this event had nothing to do with David Hasselhoff.

Still no one? Ok, ok … fine, we’ll just give you the answer: we’re talking about the dawn of the modern era of Techeye.

We say “modern era” because there was a Techeye before us, you see. But he didn’t last too long. He also got beaten up by a Woody

COURTESY OF THE EUROPEAN COMMISSION

Any true student of history knows that this week is rather important, marking as it does the anniversary of an event that changed Poland’s history.

No, we’re not referring to the start of the Round Table Talks in 1989. There’s another key moment, woefully unrecognized by textbook publishers but instrumental in the shaping of Poland’s modern identity. It happened exactly

Allen impersonator once and often ate lunch in public toilets.

Five years. Let’s put that into perspective, shall we? Techeye hasn’t missed an issue in that time, so we’ve birthed around 218 “articles” comprising roughly 101,000 words. Amidst that jumble of wisdom and tech news are at least two limericks (one of which brilliantly rhymes “stolen” and “colon”), a couple of ribald haiku, bleedingedge usage of words like “arglebargle” and “foofaraw,” an article that wantonly split every infinitive it contÂained, and one reference to an “all-gay navy.” Oh, and don’t forget the promiscuous defamation of our employer, co-workers, readers, friends, family and Nature herself that has graced this newspaper for five years.

Take that, predecessor!

Given the special occasion, we planned to showcase a mind-boggling panoply of technological wonderment. But, on second thought, we decided to head to the pub, so what you see here today is what we could find on short notice.

First let’s look at the Hiriko (hiriko.com), an electric vehicle small enough to make a Smart

Fortwo look like a Hummer. Each tion” is about the only kind of of this two-seater’s wheels innovation left for Barcontains an in-built motor roso to brag about here. that turns 90 degrees, making parThen there’s the Imperial allel parking a snap (and simultaCollection vodka brand from neously depriving driving Russian firm Ladoga instructors of their (ladogaspb.ru). favorite tool of terStyled after the ror). The cars have legendary Faba 100-120 km ergé eggs, Larange and, interdoga’s creestingly, they ations are fold up when enamelparked to concoated and serve space. gilded with The consor24-carat tium backing gold. Each the Hiriko projcontains a ect has named a set of four per-unit price of shot glasses cut from Venet€12,500, but the ian glass and a idea is to sell them decanter filled to municipal authorwith premium ities or car-sharing vodka. Prices range firms for convenient COURTESY OF LAGODA from $4,000-8,600. inner-city use. EuroExpensive, no? No matter. With pean Commission President José Manuel Barroso recently what WBJ is paying us, Techeye can described Hiriko as “European splash out once in a while. Indeed, social innovation at its best.” we should be able to afford our Indeed, since the car was con- very own Imperial Collection egg ceived of by an Australian and by the time our 10th anniversary designed in the US, “social innova- rolls around. ● Ever supped in a public toilet? Let us know: techeye.wbj@gmail.com

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

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

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl

National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl

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

Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

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

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