WBJ #42 2011

Poland has dropped three places in the World Bank’s Doing Business ranking

Clothing retailer Gap has made its debut in the Polish market 7

9

WWW.WBJ.PL

3

NBP head Marek Belka has called for government action on state finances

VOLUME 17, NUMBER 42 • OCTOBER 24-30, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Sikorski on nurturing democracy

Since 1994 . Poland’s only business weekly in English

COURTESY OF MSZ

Fixing the left

Poland’s Foreign Minister explains his blueprint for effecting democratic change 10

REAL ESTATE

COURTESY OF S+B GRUPPE

Lokale Immobilia

SLD, Poland’s most important leftist party, is down and out. Three former prime ministers from the party’s past tell WBJ what must be done to ensure it has a future

• N21 office sold • Wola Center starts • Stary Browar sale 15-18

In this issue

11, 12-14 EAST NEWS

News . . . . . . . . . . . . . . . . . . . . . . .2-3 Poland News . . . . . . . . . . . . . . . . . .4 Europe News . . . . . . . . . . . . . . . . . .5 Business . . . . . . . . . . . . . . . . . . . .6-7 Finance & Economics . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . .12-14 Lokale Immobilia . . . . . . . . . .15-18 The List . . . . . . . . . . . . . . . . . . .20-21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Holy war

Eastern affront?

Palikot’s Movement wants a cross hanging in parliament to be removed. Conservatives are up in arms 4

Ukraine joins a free-trade zone with Russia in the same week its president is snubbed by the EU 5

NEWS

www.wbj.pl

Belka backs the euro The head of Poland’s central bank, Marek Belka, said last week that Poland still wants to adopt the euro. His comments come at a time when the viability of the single currency project is coming under intense scrutiny. “Poland remains strongly committed to joining the euro area,” Mr Belka said during a conference in Warsaw organized by the National Bank of Poland.

Polish bonds most popular Civic Platform’s (PO) victory in the recent parliamentary elections has boosted investor confidence. Polish 10year bonds had become the most popular securities in the world at the start of last week, Bloomberg reported.

Polish bonds were the world’s third-worst performers last quarter.

The election outcome completely changed the prevailing trend, as prior to PO’s win Polish bonds were heavily undervalued, analysts said.

OCTOBER 24-30, 2011

IN THE SPOTLIGHT

Numbers in the News

In the spotlight: The EFSF

SHUTTERSTOCK

2

Deep divisions between France and Germany over how to bolster the euro zone’s bailout fund mean a decision on implementing a wholesale rescue plan for the euro, which was due to be taken last Sunday, will now be made on Wednesday at the earliest.

France and Germany disagree on the best way to strengthen the European Financial Stability Facility (EFSF), a €440 billion fund for

bailing out deeply indebted euro-zone economies.

Worried about maintaining its triple-A credit rating, France wants to ensure that the method used to enhance the EFSF is in its interests. France and Germany said in a joint statement last week that no concrete decisions would be made for dealing with the financial crisis before a meeting due to be held this Wednesday.

European finance ministers

z∏.21.9 billion

were due to discuss a solution to the crisis at a meeting last weekend.

As part of a plan to limit financial contagion from stricken euro-zone countries, Europe’s leaders hope to reach agreement on a second bailout for Greece and on recapitalizing the bloc’s banks.

As WBJ went to press, a deal on recapitalizing the banks was expected to be agreed on Saturday. A requirement for euro zone countries’ parliaments to introduce rules limiting budget deficits and public debt was also expected to be announced over the weekend.

However, the Franco-German statement suggested an agreement on a bailout for Greece was a long way off.

Fears over Europe’s ability to put a lid on its debt crisis prompted US President Barack Obama to hold a video conference with German Chancellor Angela Merkel and French President Nicolas Sarkozy towards the end of last week, where he expressed hope that a solution would be ready for the November 3-4 summit of G20 leaders in France.

Gareth Price

On WBJ.pl

is the Polish budget deficit after nine months of 2011.

The amount came out z∏.15.8 billion less than planned.

7.7% was the increase in industrial production in September.

Analysts had expected a much lower figure.

48,000 is the number of unsold new apartments in a group of six large Polish municipalities, including Warsaw, Kraków, ¸ódê and Poznaƒ.

2.2% is the EBRD's forecast for Poland's GDP growth in 2012, a significant reduction from the previous prediction of 3.5 percent.

Quote of the Week “There is no reason why a symbol of [European culture] – the cross – should be eliminated because a group of people with crazy ideas wish to do so.”

PiS leader Jaros∏aw Kaczyƒski reacts to Janusz Palikot's proposal that a cross hanging in the lower house of Poland's parliament be removed.

Figures in focus Fertile lands Utilized agricultural area, percentage of EU27 total in 2010, selected countries 20

15

Digital TV revolution Technology changes are set to make it impossible to receive a television signal without the use of a decoder from as early as next November, Gazeta Wyborcza reported. But broadcasters fear customers are still illinformed about the planned switchover from the traditional analog TV format. In Poland the analog signal will remain available until July 13 2013. ●

10

5

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Ge rm

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bli c Hu ng ar y

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Re pu

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Apartments anyone?

That’s a question being asked by a group of six large Polish cities, including Warsaw, Kraków, ¸ódê and Poznaƒ, after the stock of unsold apartment buildings shattered records developers would rather not know about. Rzeczpospolita reported that more than 48,000 newly built apartments in Poland’s largest cities are still sitting unoccupied, awaiting eager buyers.

The fashion industry isn't only about models and catwalks – it's big business. The BlackBerry & Play Warsaw Fashion Weekend showcases Polish designers like no other event. To find out what the big names in Polish fashion have to offer, log onto WBJ.pl.

Sw

The business of fashion

Low demand for apartments

DATELINE October/ November OCTOBER 24

COMMERCIALIZATION OF INNOVATIVE SCIENCE

Event:

During this conference, participants will learn about the opportunities and methods for commercializing scientific achievements and innovations.

Location: Warsaw International Expocentre EXPO XXI. komercjalizacja-nauki.pl

25

INTERNATIONAL PPP FORUM

Event:

Public and Private Sector Cooperation – the Partnership Idea. This event will feature several discussion panels on PPP in Poland and around the world. Hosted by economist Robert Gwiazdowski.

Location: Plac Kolegiacki 17, Poznaƒ. bpcc.org.pl

26

RENEWABLE ENERGY FORUM

Event:

This event will feature explanations of Poland’s law on renewable energy sources and discussions on the role of environmental funds in financing renewable energy, as well as their effectiveness in support of the renewable energy sector.

Location: Warsaw International Expocentre EXPO XXI, Warsaw. zpfeo.org.pl/konferencje

27

OFFICE IN POLAND CONFERENCE

Event:

This conference, focused on Poland’s office real estate market, features more than 30 speakers representing the full spectrum of views and opinions, and nearly 200 participants actively operating in the Polish office market.

Location: Marriott Hotel, Warsaw. konferencje.nowyadres.pl

Source: Eurostat

Company index Allianz Real Estate Germany ....15 IKEA Group ................................16 PORR ..........................................17 Amica..........................................18 IVG Immobilien ..........................16 Project Syndicate ......................11 AON ............................................17 IVG Poland..................................16 Regus ........................................17 APA Wojciechowski ....................18 Jeronimo Martins ......................18 Apsys Polska ..............................17 Jones Lang LaSalle ............16, 17

Ryanair ........................................7 S+B Gruppe ................................15

ATAL............................................16 Jysk ............................................16 Salans ........................................16 Atrium European Real Estate ..15 Kamis ........................................18 Samsung Electronics ................15 Axi Immo ....................................17 Karimpol Group ........................17 Savills ........................................16 Bank Zachodni WBK....................8 Kulczyk Oil Ventures ....................5

27

POSTER AUCTION

Bharat Earth Movers Limited......6 Kury∏owicz & Associates ..........17

Event:

Among the nearly 100 posters that will be auctioned, there are hippie-style gems from the 70s, socialist realist posters and propaganda, and pre-war posters that are some of the most sought-after by collectors Location: Desa Unicum, Marsza∏kowska 34-50, Warsaw desa.pl

Biedecki........................................6 LC Corp ......................................17

NOVEMBER

Schenker ....................................18 Segro ..........................................17

BlackBerry ..................................2 Levi Strauss ..............................15 Starbucks ..................................16 Bloomberg....................................2 LG ..............................................23 STRATFOR ..................................10 Budimex ....................................17 LG Electronics............................18 SwedeCenter........................16, 18 Bumar ..........................................6 Marchi Mobile ............................23 Tacit Development Polska ........15 CB Richard Ellis ........................15 Medicover ..................................17 Union Investment ......................17 Colliers International ..........16, 18 Metsa Tissue ..............................18 DM IDM ........................................6 Moody’s ....................................5, 8

Union Investment Real Estate ..16 Warsaw Stock Exchange ..........17

Eldom ........................................16 Nagel ..........................................18 Wilson & Brown ........................18 Empik Media & Fashion Group ..7 Panasonic ..................................15

7-9 Event:

HR CONGRESS The 14th annual “Kongres Kadry” event will examine the prospects for development of HR in Poland. Participate in workshops, hear expert speakers, and learn from case studies.

Location: Hotel Marriott, Warsaw. kongreskadry.pl

World Bank ..................................3 Fortis ..........................................15 peter nielsen & partners ............7 WSiP ..........................................17 Gap ..............................................7 Peugeot ......................................15 Gazprom ..................................3, 5 PGNiG ......................................5, 6 Globe Trade Centre....................15 Piotr i Pawe∏ ..............................16

X-Trade Brokers ........................19 Yareal International....................16

gowebtrade.com ........................19 Platinum Properties Group ......17 Yareal Polska..............................16 Grupa Redan ..............................18 Play ..............................................2 Zenith Real ................................17 Hedan ........................................15 PMR ..............................................7 ˚abka..........................................18

NEWS

OCTOBER 24-30, 2011

www.wbj.pl

3

Libya

Poland hails Gaddafi’s death as a triumph for democracy and Libya

COURTESY OF WIKIMEDIA COMMONS

The former Libyan leader was shot dead last week in his hometown of Sirte

Muammar Gaddafi was Libya’s leader for more than 40 years

The news that Libyan dictator Muammar Gaddafi had died from bullet wounds on October 20 was greeted as a victory for democracy by Poland’s Foreign Ministry.

“We congratulate the Libyan people on bringing to an ultimate end the dictatorship of many years’ standing,” the ministry wrote in a statement.

“His fate should be a warning to other dictators in the region and in the world. We wish Colonel Gaddafi had been tried for his crimes before a court in Libya or in The Hague. We hope that his collaborators, wanted for crimes, will soon be brought

before the courts.”

Jerzy Buzek, a former prime minister of Poland and current European Parliament president, reiterated these sentiments, writing on Twitter that the “capture of Gaddafi … is a great day for Libya and democracy, and a bad one for dictators around the world.”

Referring to his planned trip to Libya, which was due to take place last weekend, Mr Buzek said, “ I am happy I will be visiting a country fully liberated from a dictator who has imposed his iron fist for more than 40 years. Now Libya can truly turn the page.”

Poland’s Foreign Ministry highlighted its own role in the ongoing process of bringing democracy to Libya, stating, “Since the outbreak of the revolution … Poland has been

supporting the ambitions of the Libyan people to live in freedom and democracy.”

The ministry went on to say that Polish Foreign Minister Rados∏aw Sikorski was the first Western foreign minister to visit the anti-Gaddafi transitional authority in Libya, when he went to Benghazi in May 2011.

In Brussels, European Council President Herman van Rompuy and European Commission President José Manuel Barroso issued a joint statement urging Libya’s “National Transitional Council to pursue a broadbased reconciliation process that reaches out to all Libyans and enables a democratic, peaceful and transparent transition.”

David Ingham

Ease of doing business

Poland drops in World Bank’s Doing Business ranking It only saw improvement in one sub-category: enforcing contracts Poland is ranked in 62nd place in the 2012 edition of the World Bank’s global Doing Business report, falling three places from its position in the 2011 ranking, but still up from the 70th place it achieved in the 2010 edition.

“The situation, this position, is not unsatisfactory because we’re standing on good ground. Our results are still improving compared to a lot of other European countries,” Henryk Szymaƒski, the general director of Poland’s Ministry of Economy, said last

Thursday at a World Bank conference in Warsaw.

The report ranks 183 economies in 10 areas related to business regulation, including trading across borders, resolving insolvency and starting a business.

Poland is among the mostimproved European Union countries in recent years, said Marcin Piàtkowski, senior economist at the World Bank, explaining that a series of improvements made to business regulations in 2005 have served to increase the ease of doing business.

Poland ranked eighth worldwide in the getting credit sub-category of the report, the same position it

held a year earlier.

Nevertheless, Poland saw annual drops or no change in all sub-categories except the enforcing contracts category, where it rose one place to 68th.

And although experts said the country has made trading across its borders more efficient by implementing a system which allows electronic preparation and submission of customs documents, it still fell 10 places to 46th in the trading across borders category.

Among Poland’s next steps should be a focus on streamlining and revising procedures for issuing construction permits, Marcin Piàtkowski said.

Doing business, without ease Poland's ranking by various criteria in the World Banks’ Doing Business 2012 report Criterion

2012 rank

2011 rank

Change

Starting a Business

126

115

-11

Dealing with Construction Permits

160

159

-1

Getting Electricity

64

64

no change

Registering Property

89

87

-2

Getting Credit

8

8

no change

Protecting Investors

46

44

-2

Paying Taxes

128

128

no change

Trading Across Borders

46

36

-10

Enforcing Contracts

68

69

1

Resolving Insolvency

87

74

-13 Source: Central Statistical Office

Veronika Joy

Military intelligence

The Polish army has been using the Russian satellites for the past four years Polish armed forces in Afghanistan should use satellite bandwidth offered by firms that serve other European Union or NATO countries, rather than bandwidth for satellites owned by Russian state-controlled gas giant Gazprom’s space equipment arm, Polish Minister of

Defense Tomasz Siemoniak told daily Rzeczpospolita.

The newspaper revealed in September that Polish forces in Afghanistan have been using Gazprom Space System’s Yamal-202 satellite to transfer classified information for the past four years.

Mr Siemoniak reportedly learned that the Polish army was using Gazprom’s Yamal202 satellite from Rzeczpospolita, when it broke the news. He immediately asked

for an explanation from Poland’s Military Counterintelligence Service (S∏u˝ba Kontrwywiadu Wojskowego – SKW), receiving a very “extensive” answer.

“I recommended to the chief of the general staff that in the new tender, which will take place in the coming weeks, [there should] be a condition which says firms offering satellites must be the companies that supply satellites to the European Union or

NATO,” Mr Siemoniak told the newspaper.

The Polish armed forces have reportedly saved around $20,000 a month by using Gazprom’s equipment instead of satellites owned by other firms.

Poland’s Ministry of Defense says that use of the Gazprom satellite does not pose a threat to national security and that transmissions are encrypted.

Gareth Price

SHUTTERSTOCK

Defense minister: army should not be using Gazprom’s satellites

The Polish army has reportedly saved $20,000 a month using Gazprom’s satellite

4

POLAND NEWS

www.wbj.pl

OCTOBER 24-30, 2011

Parliamentary cross stirs controversy

Kaczyƒski admits Merkel comments were a mistake

Janusz Palikot has wasted no time in making his political presence felt

But media support for Civic Platform also played a role in PiS’s election defeat, the opposition leader said

Fresh after a surprising result in Poland’s October 9 parliamentary elections that saw his party take the third-largest number of votes, outspoken politician Janusz Palikot is already using controversy to thrust himself into the spotlight.

Last week Mr Palikot announced that his party, Palikot’s Movement (RP), would work to remove a cross hanging in the Sejm, Poland’s lower house of parliament.

Its presence, Mr Palikot says, is a violation of the principles of the separation of church and state.

The party has already drafted a petition to Speaker of the Sejm Grzegorz Schetyna asking him to sign a directive ordering the removal of the cross.

The move has raised loud protests from conservative circles, with Law and Justice (PiS) leader Jaros∏aw Kaczyƒski promptly responding that his party would submit a resolution “aimed at making it a

What all the fuss is about contravention of the parliament’s regulations to remove the cross from the chamber, so that security guards would have to react to an attempt to remove the cross.”

Mr Kaczyƒski said the cross had been present in “all the parliaments of an independent Poland,” and that it was a symbol of “the foundation of European civilization.” “[European culture] is the most people-friendly culture in the world and there is no reason why a symbol of it – the cross – should be eliminated because a group of people with crazy ideas wish to do so.”

Meanwhile, Deputy Sejm Speaker Stefan Niesio∏owski of the ruling Civic Platform (PO) party said Mr Palikot’s resolution would be rejected and that the cross would remain in place. A survey on the issue revealed that 71 percent of Poles are in favor of the cross staying in the chamber.

The cross was placed in the Sejm under the cover of night in 1997 by a politician of Solidarity Election Union (AWS), a conservative party which is no longer a factor in Polish politics.

Remi Adekoya

Law and Justice (PiS) leader Jaros∏aw Kaczyƒski has admitted that the comments he made about German Chancellor Angela Merkel were an error that may have contributed to his party’s failure to regain power in Poland’s recent parliamentary elections.

“I must admit that it was my mistake,” Mr Kaczyƒski said in an interview with Rzeczpospolita, referring to statements he made in his book “The Poland of Our Dreams.” Those comments suggested Ms Merkel was attempting to rebuild German imperial power, and alluded that her assent to the position of chancellor did not happen “by chance alone.”

But Mr Kaczyƒski said that studies carried out by PiS suggested his comments were less damaging to the election outcome than other factors, such as the role of the Polish media. “[The ruling Civic Platform] had incredibly strong media

COURTESY OF THE EUROPEAN COMMISSION

Politics

EAST NEWS

Politics and religion

Mr Kaczyƒski criticized German chancellor Angela Merkel in his book “The Poland of Our Dreams” coverage. It is hard to expect that such a party could lose the election,” he said.

The PiS leader also continued his party’s attack on Janusz Palikot, and his political party – Palikot’s Movement (RP). Asked whether he was concerned that voters who were disappointed with Civic Platform could instead support Mr Palikot’s party, Mr Kaczyƒski said that RP could “radically reduce the level of our public [discourse], which is already set very low by Civic Platform.”

Referring to internal party polls that had suggested the result of the election would be much closer than the final outcome, which saw Civic Platform win by 9 percent over PiS, Mr Kaczyƒski said he had to concede that his party was expecting a better result.

“Somewhere in the week before the election, there was maybe even a tie,” he said, before adding that an error in his party’s research meant the predicted result was markedly different from reality.

David Ingham

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EUROPE NEWS

OCTOBER 24-30, 2011

www.wbj.pl

Ukraine and the EU

Poland’s ambitions to align Ukraine closer with the EU saw two setbacks last week In a move that casts doubt on whether Poland will be able to achieve its goal of bringing Ukraine closer to the EU, Ukrainian President Viktor Yanukovych signed an agreement with Russia and other former Soviet states last week establishing a free-trade zone that will end export and import tariffs on certain goods.

The free-trade zone has been described as an “anteroom” to a customs union currently composed of Russia, Belarus and Kazakhstan and

which Moscow has been pushing Ukraine to join.

For its part, Poland has been working hard to get a free-trade deal done between the EU and Ukraine while it holds the six-month rotating presidency of the EU. Though Ukraine’s move has drawn it closer to Moscow, Tadeusz Olszaƒski, an expert at the Centre for Eastern Studies in Warsaw, said the agreement didn’t preclude any free-trade deal between the EU and Ukraine.

Nevertheless, that agreement may still be in dire straits. On the same day Ukraine’s trade pact with Russia was signed, the EU postponed a summit between Mr

Yanukovych and EU leaders in Brussels that had been intended to help complete an association and free-trade agreement.

The EU’s decision was widely seen as a reaction to the sentencing earlier this month of former Ukrainian Prime Minister Yulia Tymoshenko to seven years in prison. In Europe, Ms Tymoshenko’s trial has widely been perceived as politically motivated.

European Council President Herman Van Rompuy said via Twitter that the meeting “has been postponed to a later date when the conditions will be more conducive to making progress on the bilateral relations.”

COURTESY OF THE EUROPEAN PARLIAMENT

Ukraine draws closer to Russia

Mr Yanukovych had been due to meet EU leaders in Brussels No alternative date has been set for the meeting.

Poland’s term as president of

the EU Council ends December 31.

Veronika Joy

Euro-zone crisis

Spain downgraded – could France be next?

European leaders were due to meet last weekend to talk debt-crisis solutions, but fears are beginning to grow that events are moving faster than the leaders are able to react.

World markets began last week on a rally ahead of the meeting, which was rumored to be a watershed event. But much of that came crashing down on Tuesday when ratings agency Moody’s downgraded Spain’s credit rating by two notches from Aa2 to A1.

Moody’s said that “no credible resolution of the current sovereign debt crisis has emerged” since Spain’s rating

SHUTTERSTOCK

No end in sight to Europe’s debt crisis as European leaders meet to find a solution

Could France’s credit rating be the next to fall? was put under review in July.

This was followed a day later

by Moody’s downgrading five Spanish lenders with long-term senior debt and deposit ratings for the banks cut one level and given a negative outlook.

On Wednesday afternoon French President Nicolas

Sarkozy flew to Frankfurt in the hope of reaching a resolution to the debt crisis ahead of the weekend’s meeting of European leaders, with France arguing that the most effective way of leveraging the European Financial Stability Facility (EFSF) is to turn it into a

bank which could then access funding from the ECB. But after the meeting Mr Sarkozy said talks for a resolution had stalled. French politician Charles de Courson said Mr Sarkozy had told a parliamentary meeting it was not just Angela Merkel who need-

ed convincing, as the whole German coalition is divided on this issue, Reuters reported.

European markets fell on Thursday morning following news that talks between Mr Sarkozy and Ms Merkel had hit a stalemate, while on Tuesday France saw borrowing costs rise sharply after Moody’s warned it could give the country’s triple-A rating a negative outlook within the next three months.

“The triple-A is not in danger because we will be even ahead of schedule on passing deficit reduction measures,” French Finance Minister François Baroin said on France 2 television, though he admitted that the country’s growth forecast of 1.75 percent for next year was too optimistic.

Andrew Kureth

5

KOV halts Syrian activity Kulczyk Oil Ventures (KOV), a company controlled by Polish billionaire Jan Kulczyk, has suspended its search for oil and natural gas in Syria, reported Parkiet.

The main reason for the decision is the difficulty of guaranteeing the safety of its employees, Jakub Korczak, KOV vice president, told the newspaper. “The country is practically in a state of civil war, and recent sanctions applied by the EU, US and Canada make it difficult to finance further activity,” he added.

Gazprom, PGNiG talking gas prices or not?

Gazprom vice president Alexander Medvedev has said that his company is not negotiating gas price reductions with Polish state-owned gas monopolist PGNiG, which imports most of its gas from Gazprom. Mr Medvedev claims that the ongoing talks between the two companies concern only a collaboration in the construction of a new gas power plant in Poland. PGNiG, for its part, says the two companies are indeed negotiating prices. A PGNiG representative even said that if the two companies are unable to reach an agreement by the end of October, the firm would take the issue to court. ●

6

BUSINESS

www.wbj.pl

OCTOBER 24-30, 2011

Export

Bumar close to $275 million deal with India’s BEML

Bumar, a leading supplier and exporter of armaments and military equipment, is close to securing a huge contract for the supply of 650 armored recovery and repair vehicles for the Indian military, Indian media reported last week.

The contract between Bumar and India’s public sector defense undertaking, Bharat Earth Movers Limited (BEML), could be worth $275

SHUTTERSTOCK

The deal for the supply of military vehicles has reportedly been approved by the Indian government

Poland’s Bumar looks set to supply India’s BEML with 650 armored recovery and repair vehicles

million, according to the Economic Times, an Indian daily financial newspaper. The newspaper wrote that the country’s cabinet committee on security, which was chaired

by Indian Prime Minister Manmohan Singh, had cleared the defense ministry’s proposal and approved the orders.

If successfully completed, the deal would be one of the largest export contracts in the arms sector in the past five years, and would almost double the predicted $300 million figure expected for Polish arms exports in 2011.

However, Bumar is still awaiting confirmation of the

agreement, and is reluctant to make a statement regarding the proposed transaction.

When contacted by WBJ, Bumar spokesperson Monika Koniecko said she was unable to comment on the deal. She was quoted by Rzeczpospolita as saying, “we are cautious about commenting on these revelations, because the defense business does not like publicity, and because of the effort we put into the preparation of this transaction.”

Bumar has been active in the Indian market since 2000, but some of the companies belonging to the Bumar Group have been supplying

defense equipment to the Indian Army for more than 30 years, in deals worth a total of around $6 billion, the company said in a statement In India the firm is present in three main areas: the “delivery and indianisation of equipment, cooperation in R&D projects, and investment and modernization of production lines,” the statement reads.

The Bumar Group, which consists of 23 manufacturing and trading defense-sector companies, is currently undergoing a restructuring and consolidation process, which was formalized in January 2011.

David Ingham

Refining

The gas behemoth says it would need a partner to share the costs Poland’s state-owned gas monopoly PGNiG is searching for a partner with whom it could invest in a new refinery that would employ state-of-theart technology not used anywhere else in Europe.

The refinery would produce synthetic diesel and aviation gasoline from natural gas in a process known as gas to liquids (GTL). The refinery may also

be used to process shale gas.

“It’s no secret that construction of the refinery is a gigantic investment that is beyond the financial capabilities of the company alone,” PGNiG deputy CEO Marek Karabu∏a told Dziennik Gazeta Prawna.

The investment would involve billions of dollars, Mr Karabu∏a added. A company spokesperson declined to say exactly how much the scheme could cost.

Mr Karabu∏a said the financial cost would be worth it because the refinery would be a

“great way” to process the shale gas the company hopes to find. “We are looking for a partner who will help us exploit the shale gas we will extract.”

“In addition, production of synthetic diesel and petrol is a chance to improve Poland’s energy security,” Mr Karabu∏a said.

PGNiG is unlikely to launch the investment any time soon, since it is in the process of buying a 99 percent stake in Vattenfall Heat for z∏.2.96 billion ($1.02 billion). “This will require the company to get into

debt, so it is unlikely to make any big investments in the near future,” said ¸ukasz Prokopiuk, an analyst at DM IDM. GTL fuel has been available in Shell gas stations in Poland for two years now. It is characterized by its chemical purity and properties that allow it to burn more efficiently than conventional fuel.

PGNiG has a total of 15 shale gas concessions in Poland, where experts expect large deposits to be discovered.

Gareth Price

COURTESY OF PGNIG

PGNiG looks to make huge shale-gas refinery investment

The new refinery would cost billions of dollars

Legal Forum

Perpetual usufruct to be replaced?

Rados∏aw Biedecki Partner

The new parliamentary term has not started yet but the issue of replacing or amending the bizarre perpetual usufruct right is still a topic for developers, bankers and, last but not least, individuals.

The simplest idea was to transform, free of charge, the right of perpetual usufruct into full ownership (freehold) but it was successfully blocked by certain municipalities. They raised the issue that such a transformation – free of charge – would affect their financing. A transformation under a cash consideration is not attractive for the perpetual usufructees (individuals or companies).

The right to construct The right to construct is an alterna-

tive solution that has been prepared with the aim of it being introduced into the Polish legal system. Its general idea is pretty close to the concept of the perpetual usufruct.

The right to construct would be established contractually (in the form of a notarial deed) for a period between 30 and 100 years, and would be entered into a land and mortgage register. Moreover, it would be possible to mortgage it.

The holder of the right to construct would own the buildings that are constructed. The holder of the right to construct would also be able to freely dispose of such buildings without the consent of the real estate owner. The agreement setting the right to construct

Treasury but also by private persons (including individuals and companies);

should precisely describe the building(s) that could be erected on the real estate. After the term of the right to construct, the real estate owner should pay to the holder an amount corresponding to the value of the erected building(s) as of the termination date. In case the value of the building(s) substantially exceeds the property value, then the real estate owner can request the holder to purchase, on the termination date, such a real estate or part thereof.

Here are some key elements that would differentiate the right to construct from perpetual usufruct:

(iii) there would be no claim for prolongation of the right to construct beyond the initial term. The latter would be the subject of negotiations between the real estate owner and holder of the right to construct.

(i) it would be established not only by municipalities and the state

The right to construct would allow not only a construction on

(ii) a simultaneous below-ground use of the property by the owner or another person aside from the holder of the right to construct would be possible;

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market.

The content is created in consultation with Warsaw Business Journal's editorial staff.

the surface of the ground but also under it. In practice, and combined with the above-mentioned split of the ground/surface use, you could have one owner of an underground garage or facility and another one of the building erected on the ground.

Skepticism has been expressed as to whether this draft regulation corresponds to the needs of the market. Private investors and financing institutions would definitely prefer a transformation of perpetual right into full ownership (freehold).

The proposed right to construct seems to be an interesting alternative for infrastructure projects in the fields of industry, traction and transportation. ●

BUSINESS

OCTOBER 24-30, 2011

www.wbj.pl

7

Retail

An expected drop in consumer spending might make things harder for the American giant American fashion retailer Gap has just opened its first franchise store in Poland, located in Warsaw’s Arkadia shopping center.

Despite its late entry into the Polish market, Gap’s status as a global brand gives it a good chance to become popular in Poland, said Katarzyna Twardzik, a retail analyst at research firm PMR. Empik Media & Fashion Group, which will develop the brand in Poland, plans on open-

ing “several stores a year” across the country from 2012, starting in Katowice, Poznaƒ and Wroc∏aw, said NFI EM&F CEO Maciej Szymaƒski.

Although the Polish economy has so far been protected relatively well from the growing pessimism in the euro zone, with August retail sales figures showing an above-forecast growth of 11.3 percent y/y, analysts believe retail sales will face considerable pressure later in the year.

Moreover, while some clothing and footwear companies operating in Poland have posted healthy financial results so far in 2011, notably clothes designer and distributor LPP, the situation on the market is

“not excellent,” said Ms Twardzik, adding that Poles seem to be reducing their expenditures in the segment. “I am a bit afraid if Gap has chosen the right time to enter the Polish market,” she said.

International expansion Gap’s foray in the Polish market is part of a much wider expansion plan, with franchise agreements for 2011 spanning 32 countries, including Chile, Egypt, Morocco, Vietnam, and especially China, where the firm sees its biggest potential for growth.

International expansion is just one side of a global strategy which will see Gap trying to boost sales outside of North

America and online to about a third of the group’s total sales by the end of 2013, while pulling back from the North American market. The firm intends to shut down more than a fifth of its Gap stores in North America over the next two years.

“This is not a condemnation of our home country, but we are making a prediction that it’s slow growth here,” Gap chief executive Glenn Murphy said upon presenting an update on the company’s growth strategy in mid-October.

While the company’s H1 2011 profit fell 21 percent y/y to $422 million, a performance which Mr Murphy said he was “not happy with,” Gap’s inter-

COURTESY OF WIKIMEDIA COMMONS

Gap makes late entry into Polish market

Gap’s first Polish store is located in Warsaw’s Arkadia mall national sales grew 16 percent in the first half of the year. In the same period, the franchise

business saw 48 percent revenue growth.

Alice Trudelle

Budget airlines

Ryanair finally puts Warsaw on its flight path The company plans to offer 40 regional connections from the future Modlin Airport, near the capital Low-cost airliner Ryanair is looking to establish a Polish base of operations at an airport currently under construction in Modlin, company representatives said at a press conference last week.

The airport, which is locat-

ed 35 km northwest of the capital, is scheduled to begin serving passengers in June 2012.

Within five years Ryanair hopes to have 10 of its planes at Modlin and offer 40 regional connections from the airport, while servicing 3.5 million passengers in the process.

The company estimates that 3,500 new jobs will be created if it launches operations at Modlin.

Ryanair has been present

in Poland since 2005. It currently offers flights from Bydgoszcz, Gdaƒsk, Katowice, Kraków, ¸ódê, Poznaƒ, Rzeszów, Szczecin and Wroc∏aw.

Although it has not yet signed an official agreement with the airport authorities, Ryanair says it is involved in talks. “We hope that we will agree with the owners of the airport before Christmas.

Then, at the start of next year

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

Neutral money transfer Resources obtained by a company and passed on to a contractor pursuant to a concluded contract on a joint project are taxneutral for such taxpayers. According to the interpretation of the director of the Tax Chamber in Katowice, such resources do not constitute costs and they do no qualify as revenue for the other party.

Only the part of financial resources received from the joint project which is due to a company pursuant to the concluded contract will be deemed as the company’s revenue. Thus, the authority allows for the possibility of employing an agent for the transfer of money to a contractor.

Longer maternity leave From January 1, 2012, additional maternity leave will be prolonged from two to four weeks (in the case where the mother has given birth to a single child) and from three to six weeks (in case of multiple births).

The right to an increase in additional maternity leave will be given to persons who on January 1, 2012 will at the time be on normal or additional maternity leave. Per-

sons who adopt children will also be able to take longer leave for child care. From January 1, 2012 the length of paternity leave will be increased from one to two weeks.

Installation of kitchen furniture subject to standard VAT rate?

There is no end to the controversy concerning the VAT rate on installation services with regard to recessed wall units, as well as the installation of kitchen furniture, built-in appliances, built-in wardrobes and other similar fittings in residential buildings. Different tax interpretations result in various opinions. In similar cases, some interpretations indicate the basic rate of 23 percent to be the correct one; others – the preferential rate of 8 percent.

The Director of the Tax Chamber in Poznaƒ issued another interpretation that is not beneficial for taxpayers. The authority decided that the 23 percent tax rate should be applied in this case, since the above-mentioned activities do not qualify as construction services, repair, or modernization of objects which constitute buildings covered by the social residential program. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

we can give a date for when we expect the base to be opened,” said Michael Cawley, deputy chief executive and chief operating officer at Ryanair.

He didn’t say where Ryanair would fly to from Modlin, but said destinations

including Berlin, Dublin, Frankfurt, Malaga, Oslo and Venice are all under consideration.

Construction on Modlin Airport began in October of last year and is set for completion in Q2 of 2012.

The entire facility will have over 12,000 sqm of usable space and will be able to handle about two million passengers per year. The investment is designed primarily for lowcost airlines and charter Gareth Price flights.

8

FINANCE & ECONOMICS

www.wbj.pl

OCTOBER 24-30, 2011

Credit ratings

Moody’s: ‘True test’ for Polish government yet to come But the outcome of the recent parliamentary elections is positive for Poland’s sovereign credit rating The re-election of the coalition government led by Prime Minister Donald Tusk’s Civic Platform (PO) party is positive for Poland’s sovereign credit, Moody’s Investors Services said in a report released last week.

While the agency said PO’s victory is a “market-friendly outcome,” it added that the “true test” of Poland’s economic strength will be discovered next year.

Poland’s A2 stable rating has been maintained for the time being, but Moody’s said the country will face greater challenges.

The firm wrote that Mr Tusk’s victory in the election signals a “solid mandate for

continued pursuit of existing policy, including further fiscal consolidation.”

However, it added that because of the general economic slowdown affecting countries throughout Europe, Poland’s ability to meet its fiscal goals may be hindered.

“With growth set to slow to less than 3 percent in 2012, the government’s ambitious goal of cutting the deficit to 2.9 percent of GDP next year might

Labor market

be out of reach. Poland is aiming to reduce the budget shortfall through a mix of higher value-added taxes and a cap on the growth of discretionary budget spending, which represents only around a quarter of the government’s budget,” Moody’s wrote.

One obstacle facing the government is that it will likely be limited in what it can do to provide fiscal stimulus for the economy, the agency said. “It

has less fiscal flexibility now to introduce stimulatory measures to safeguard Poland’s expansion. Debt to GDP is nearing the 55 percent threshold that, once reached, triggers automatic austerity measures under Poland’s Public Finance Law.” Nevertheless, Moody’s said the new government appears “aware” that a slowdown is likely, saying that Poland will have to work “twice as hard” as

it did in the previous four years to meet the challenges ahead.

Moody’s is critical of the gradual reforms PO enacted in its first term, saying the party failed to get to grips with some of the issues “that limit Poland’s potential growth.”

As a result, the Polish government may have more to deal with in the event of another, stronger crisis, the agency said.

Ella Pa∏ka

Industry

Jobs and wages figures Polish industrial output indicate slowdown ahead surprises on the upside Employers are preparing their businesses for when the economy starts to lose steam The latest employment and wages figures for Poland’s private sector indicate that the economy is starting to slow down, economists say.

Average growth in employment decelerated to 2.8 percent year-on-year from 3.1 percent the month before, the country’s statistical office revealed last week. The market had expected annualized growth of 2.9 percent.

Employment fell by 0.1 percentage point month-onmonth in September, the second month in a row the rate has dropped. The result partially reflects a fall in the number of seasonal employment opportunities.

The average gross wage also fell for a second consecutive month, dropping by 0.3

percent m/m to z∏.3,581.94. In annual terms, it grew by a slower-than-expected 5.2 percent.

“The data confirmed a worsening situation in the labor market, which is triggered by deteriorating activity in the world economy,” Bank Zachodni WBK analysts wrote in a research note.

They added that the employment figure “confirms that enterprises have started to limit their demand for workers, preparing for the

economic slowdown ahead.”

Poland’s rate-setting Monetary Policy Council (RPP) is expected to keep interest rates unchanged until the end of the year.

Earlier in the week RPP member Andrzej Bratkowski told Bloomberg that although he expects no change to the interest rate this year, hikes are more likely than cuts because of the present pace of inflation.

Gareth Price

Weakened wages Average gross wage in the private sector, September 2010September 2011 (in z∏.)

4,000

3,750

3,500 2010

2011

3,250 Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Source: Central Statistical Office

But economists say that there is still a slowdown on the cards Growth in Polish industrial output increased at a fasterthan-expected rate in September, providing evidence that runs counter to the widespread belief that the economy is starting to slow down.

Output grew by 7.7 percent year-on-year and by 13 percent on the month, compared to growth of 8.1 percent and 4.3 percent respectively in August.

The market had expected annualized growth of around 5 percent in September.

Construction and assembly output was the motor for the increased growth, increasing by 18.1 percent y/y versus 10.8 percent y/y in August.

Export-oriented sectors showed the fastest growth, with output of furniture, metals and automobiles all expanding strongly.

Nevertheless, Bank Zachodni WBK poured cold water on hopes that the economy is not starting to slow down, saying in a report that the output growth “is probably due to continuing realization of contracts agreed in the past.”

Moreover, production of

machinery and equipment showed a sizable drop of 10.9 percent.

“It should be expected that the inflow of new orders will be weaker and the momentum of industrial output will slow down in the upcoming months,” the report reads.

Gareth Price

Making a comeback Annualized growth in Polish industrial output, September 2010-September 2010 (in %) 12 10 8 6 4 2010

2011

2 0 Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Central Statistical Office

FINANCE & ECONOMICS

OCTOBER 24-30, 2011

State finances

COURTESY OF THE INTERNATIONAL MONETARY FUND

Belka: gov’t must act to fix public finances

Mr Belka says he supports the Prime Minister’s plan for a financial stability committee

The head of the NBP says the government needs to move toward reform without being “radical” The new government should focus on finding a way to eliminate ineffective tax breaks, reform uniformed services’ pension schemes and rationalize Agricultural Social Insurance Fund (KRUS) expenditures, National Bank of Poland president Marek Belka said last week.

Mr Belka, who made the statements in an article for Bloomberg Businessweek, said the government needs to take significant steps toward the

consolidation of public finances. However, he added that Poland didn’t need to enact radical reforms, saying these had already been carried out in the early 1990s.

“We need to combat inflation, but not overdo it,” Mr Belka said, adding that Poland “shouldn’t tighten the screws too far just to loosen them too much a short while later.”

Mr Belka said he supports Prime Minister Donald Tusk’s initiative to create a financial stability committee and a system risk council. He added that he would continue to support moves to bring the inflation rate down to 2.5 percent, the NBP’s mid-term target.

He said that the central

bank could intervene again in currency markets to stabilize fluctuation in the value of the z∏oty, and reiterated that policy makers would not target a particular z∏oty exchange rate.

But Mr Belka also said he hoped that the new head of the Financial Supervision Commission, Andrzej Jakubiak, would be assertive in dealing with banks, including the owners of foreign institutions operating in Poland.

“It is hard to accept that banks in Poland accumulate z∏.110 billion in accounts at the NBP and do not use these funds to buy perfectly liquid securities that have a higher interest rate,” he said.

David Ingham, Gareth Price

Economic growth

EBRD slashes forecast for Poland, CEE region Poland’s economy will grow by just 2.2 percent next year the bank says, still much better than other countries in the region The European Bank for Reconstruction and Development (EBRD) expects a sharper slowdown for Central Eastern Europe (CEE) than what it forecast earlier this year.

The EBRD has lowered its forecast for Poland’s GDP growth this year to 3.7 percent from 3.8 percent previously, and slashed its forecast for next year from 3.5 to 2.2 percent.

Other countries in CEE, and especially those with closer ties to Greece and “those

transition countries that are most strongly integrated with the euro zone,” will likely experience a stronger impact, read the report. For 2012, none of the countries in Central Europe, the Baltic States or in Southeastern Europe are expected to reach GDP growth higher than 3 percent.

The EBRD pointed out that the significant lowering of its forecasts points to the deteriorating circumstances stemming from the euro-zone crisis. If Spain or Italy were to default, the region could be further destabilized, the report added.

For Poland, the EBRD was more positive, pointing out the country’s domestic demand as the source of its resiliency. The bank said Poland’s “fiscal and financial sector vulnerabilities are con-

tained,” but added that “additional measures will need to be taken to meet the ambitious, though much-needed, target for deficit reduction.”

The government has set next year’s deficit-to-GDP ratio target at 2.9 percent.

The report said that “while the euro area is expected to grind to a near standstill, it is assumed to avoid a full recession.”

One potential fear is a decrease in lending in the euro zone’s peripheral regions.

“There is a risk that the ability of bank groups to pass on support to their subsidiaries in the transition region may be constrained by their national governments. This could result in a substantial reversal of bank debt flows and a large contraction of credit in the region.”

Ella Pa∏ka

www.wbj.pl

9

10

OPINION & ANALYSIS

www.wbj.pl

OCTOBER 24-30, 2011

Fostering Europe’s infant democracies

T

to have European and American friends who gave as a helping hand in difficult times, especially during the period of martial law.

The result was that Poland and other Central European states could re-unite themselves with the European family. But the most effective tool of the EU’s democratization policy – its own expansion – cannot be used indefinitely. The EU must therefore develop tools to promote democracy outside its current and potential future borders, especially in countries and regions that are unlikely to join the Union any time soon, if ever.

he Arab Spring has launched a new wave of democratic revolutions, proving that the struggle for freedom can be stronger than the chains of tyranny. But democracy building is a difficult and often unpredictable business. Supporting it is in our common interest, although if it is to proceed effectively the European Union needs to deploy instruments

“In a revolution, as in a novel, the most difficult part to invent is the end”

No easy task French political thinker Alexis de Tocqueville once said, “In a revolution, as in a novel, the most difficult part to invent is the end.” The democratic gains from the revolutions in Egypt and Tunisia are far from being consolidated, and the rest of the region continues to strive for freedom. It is no more than common sense that they should be aided by the EU while modeling their transitions on our experiences. And it is our moral duty to help.

But existing EU instruments are not always able to address the needs of would-be democracies adequately, not least because they have to operate within the rigid rules and remits of EU institutions. And as developments in North Africa and the Middle East have shown, much more remains to be done if the EU is to live up to its promise.

that are flexible, non-bureaucratic and able to respond quickly to both existing and emerging challenges.

Promoting democracy That is why I have proposed a new tool: the European Endowment for Democracy. The EED could be a hub for ideas on how to make democracy work – a tool to support political dialogue and democracy at the local level.

We all know that change must come from within, but we also know how crucial it is to gain support from outside. Europe’s own experience shows that external actors have a role to play in supporting change, and that at times they may be crucial.

We in Poland were lucky enough

COURTESY OF MINISTRY OF FOREIGN AFFAIR

Rados∏aw Sikorski

Foreign Minister Rados∏aw Sikorski Rapid response needed So it is clear the EU needs a lighter, less bureaucratic and more flexible instrument that is able to respond more rapidly, and in a manner tailored to the needs of recipient nations and their fledgling civil society institutions. We are already on the right track. Earlier this year, in a communication entitled “A New Response to a Changing Neighbourhood,” the Commission and the High Representative supported the idea of establishing a European Endowment for Democracy, and the concept was

endorsed by member governments in June.

Because flexibility and freedom of operation are of paramount importance, it is crucial that the EED should not become just another EU body. It has to be established as a light structure, perhaps under an international convention making it open not just to EU member states.

This original formula would enable the EED to complement existing EU instruments in three ways. First, the EED would have the freedom to support independent media, democratic

civic groups and non-registered NGOs. Second, the EED could provide faster support more easily, and not just in response to an existing crisis, but through proactive support for democracy by “drip-feeding” the chosen non-state actors.

Third, the EED could draw on non-EU resources, including those of member states and other contributing nations and foundations.

As a result, the EED would support the development of “deep democracy” – a pluralistic system rooted in freedom of speech, human rights, an independent judiciary and an inquisitive media, a thriving civil society and free trade unions. Its operations should span both authoritarian states and countries moving towards democracy.

It is the last piece of the puzzle – the promotion of strong civil societies – that we Europeans can and should help build.

The EU has itself succeeded in promoting democracy in Europe, and now the time has come to offer our support to those who are struggling for the values that have served us so well. Our neighbors’ gains will be ours too. ● Rados∏aw Sikorski is Poland’s Minister of Foreign Affairs and was previously Minister of Defense.

This is an edited version of an essay which appears in the autumn 2011 issue of Europe’s World. europesworld.org

European crisis boosts Moscow’s opportunity

E

West – and especially Europe – on the grounds of investment, modernization and trade. The economic lever has been one of the West’s strongest in attempting to prevent the former Soviet states from falling back under Moscow’s sway.

Door left open

COURTESY OF ALIVEGASPAR/WIKIMEDIA COMMONS

ight of the 11 countries that make up the Commonwealth of Independent States (CIS) signed a free-trade pact last Tuesday. The remaining states plan to either sign the pact, or consider signing it, by the end of the year.

The CIS was formed in 1991, after the fall of the Soviet Union. The commonwealth’s founding was part of an urgent effort to fit into a coherent, stable structure the grouping of newly independent countries that had spent seven decades united under Moscow.

Current CIS members include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. The CIS excluded the Baltic States, which were orienting themselves toward Europe, and in 2008 Georgia gave up its membership following the Russia-Georgia war.

The European financial crisis has given Moscow an opportunity to act as an economic heavyweight in the region

Strengthening alliances The CIS has essentially served as a talking shop, with symbolic military and economic components. The group’s past attempts to create freetrade pacts were never signed. Moreover, Ukraine, one of its founding members, never even signed all the membership agreements for the organization.

As the CIS struggled for the past two decades, Russia used other organizations to form close alliances with

many of its former states. These included the politically motivated Union State (between Belarus and Russia) and the military Collective Security Treaty Organization (CSTO).

In the past year, Russia has strengthened its alliances by introducing a customs union with Belarus and Kazakhstan, and expanding the parameters of the Union State and CSTO. Meanwhile, Moscow has been solidifying its direct influence in most of the former

Soviet states.

But former Soviet states are more attracted to the idea of joining a trade or economic alliance with the West than entering into a similar arrangement with Russia. Traditionally, former Soviet states have signed on to economic alliances with Russia for political or security reasons – as was the case when Minsk and Astana joined the Customs Union. Russia has not been able to compete with the

But the European financial crisis offers Russia a rare opportunity to emerge as a strengthened regional economic heavyweight. The ongoing crisis is forcing European countries – and the EU – to turn their focus away from projects outside the region, leaving them unable to fully dedicate themselves to countering Russia’s resurgence in the former Soviet states.

It was also announced last Tuesday that a key summit scheduled for last Thursday between Ukraine and the EU – intended to put finishing touches on an association agreement between the two – would be postponed. The political scandals in Kiev around the jailing of Ukrainian opposition leader Yulia Tymoshenko provided the official reason for the postponement; however, it is unclear whether the EU is capable of making any decisions that don’t concern its own financial situation.

This is not to say that Ukraine and the EU won’t reach trade agreements in the future – just not now. And this leaves the door open for Russia.

‘Eurasian Union’ Moscow has the cash, the stability and the drive to take advantage of the economic opportunities left open by Europe’s preoccupation with its financial crisis. But with Russia, an economic alliance is never limited to the economic sphere. Like the Customs Union or the CSTO, Moscow is adept at starting with a customs or military arrangement and extending its impact into other policy realms.

And Moscow is certainly aware of its present opportunity. As widely reported, Russian Prime Minister Vladimir Putin, who is likely to return next year to the presidency, has announced his intent to bring the former Soviet states into a “Eurasian Union” – a proposal that has caused some to say the Russian leader is pursuing an arrangement that resembles the Soviet Union. Mr Putin has denied that link, and certainly there are factors that limit the extent of any such reformation. Nonetheless, Mr Putin said that such a union would be built out of existing alliances and unions between the former Soviet states – such as the Customs Union and now, most likely, the reinforced CIS. ● This edited version of “European crisis boosts Moscow’s opportunity” is reprinted with permission of STRATFOR. stratfor.com

OPINION & ANALYSIS

OCTOBER 24-30, 2011

www.wbj.pl

11

Can SLD make a comeback?

Remi Adekoya

S

ince the dismal showing of Poland’s establishment leftist party, the Democratic Left Alliance (SLD), in the October 9 parliamentary election, questions have arisen as to whether it can remain a force in Polish politics.

A new message is obviously needed, since the current one has come up well short. In the last few years SLD has had serious problems weaving a political narrative that appeals to voters.

Two types of leftist voters

“SLD’s only option is to be strong in both the social and economic spheres, without being extreme in either” SLD, a party which a decade ago enjoyed the backing of over 40 percent of Poles, won just single-digit support in the election, and was even overtaken by newcomer “leftists” Palikot’s Movement (RP).

Calls for the head of SLD’s current leader Grzegorz Napieralski followed soon after. Mr Napieralski has now promised to hand over power at the next party congress, scheduled for January 2012.

It is unclear who will eventually take the party reigns, but the more pressing issue for those interested in SLD’s chances of surviving as a political force is whether it will be able to deliver a new message that resonates with voters.

This can be explained partly by what Miros∏awa Grabowska, head of polling institute CBOS, has referred to as the existence of two types of leftist voters in Poland.

The first group is made up of lessaffluent Poles who are receptive to leftist economic policies and the idea of a welfare state, but are usually poorly educated and very religious.

These people are often extremely conservative and are therefore unlikely to support gay rights and the liberalization of abortion laws.

That’s unlike those in the second category, for whom social issues such as separation of church and state and minority rights are important. They are usually well-educated, well-paid and more pro-business. They also tend not to be overly concerned with the problems of the less well-off and are wary of socialist messages.

In recent years, Law and Justice (PiS), which combines social conservatism with leftist economic philosophies, has succeeded in winning support among many of Poland’s less well-off. Meanwhile, Janusz Palikot,

the founder of Palikot’s Movement, has focused on the second group of voters.

So where does that leave SLD? Under Mr Napieralski’s leadership the party has not been able to create a strong identity for itself.

The party will not be able to outbid Mr Palikot in the race to prove who is more socially liberal, since there seems to be no limit to what Mr Palikot is willing to say to win votes.

Likewise, SLD will find it difficult to outbid PiS when it comes to socialist rhetoric and promises to take care of the poor.

The moderate left This leaves the party with only one option: to be strong in both leftist spheres without being extreme in either. This would involve a delicate balancing act with a carefully scripted political message and the discipline to stick to it.

SLD would need to portray Palikot’s Movement as a radical party which is more focused on controversy than solving the day-to-day problems of those they are supposed to represent.

The problem with being reasonable (read: moderate) today is that it risks being treated as boring – and not newsworthy – by the media, which thrives on controversy. If a party’s opinions are not present in the

media, then the public quickly forgets about it.

So SLD needs to be moderate while at the same time making sure its voice is heard loud and clear by the public. This can only be guaranteed by a leader who constantly provides clever quips for the media to feed on.

Leszek Miller is now the parliamentary club leader of SLD and despite the apprehensions of some who think the former PM’s best days are behind him, he is still likely to be a media favorite. Leszek Miller is a wily and seasoned political player with a gift for memorable one-liners.

He should be able to keep SLD’s postulates in the public discourse. It remains to be seen, though, whether he or someone else will end up as party leader.

The worse, the better If, as expected, the economic situation deteriorates in Poland and global resentment against big corporations and modern-day capitalism continues to grow, then slogans critical of “the system” and demanding of social justice are likely to gain traction.

Many voters in the center could then shift to the left.

If that were to happen, Janusz Palikot’s party, with its strongly probusiness outlook, would find it difficult to reinvent itself as a defender of the masses. But if SLD is viewed as a

center-left party, then it will be able to nimbly maneuver more to the left on economic issues and win support among those who are increasingly frustrated with the status-quo.

Many were shocked when SLD, a party comprised of former members of the communist party, won the parliamentary election in 1993, just four years after the complete collapse of communism. Back then many average Poles had been hit hard by the economic reforms of “Shock Therapy” and SLD was the only party to address their frustrations, hence its electoral success.

These are different times, no doubt. But while rich countries have tools at their disposal to soften the blow of another potential economic crisis on their populations, Poland would be left defenseless. Its citizens would quickly feel the pinch.

Add to that the rising resentment against the “system” in general, and it is far too early to rule out the possibility of a renaissance of leftist parties and leftist ideals. There won’t be any national elections in Poland until 2014, so time is on SLD’s side. Events on the ground and smart politicking could still help get the party back on the podium. ● Remi Adekoya is WBJ’s politics editor. Read his blog, “The business of politics” on WBJ.pl

The euro’s hard rain falls Leif Pagrotsky

T

he blame game is in fashion as crisis and desperation spread across Europe. News reporting, as well as political and economic debate, now focuses on identifying the culprits, with bankers and politicians emerging as the prime suspects.

Bankers are blamed because their irresponsible lending and speculation brought about the fall of economies like Ireland and Latvia, as well as deep trouble in countries like Spain and Portugal. Politicians are blamed because they did not tighten fiscal policies when needed in order to prevent property bubbles, rein in external deficits, and avert economic overheating. Now, after the bubbles have burst, and the property market’s inevitable collapse has been followed by that of banks, public finances, and labor markets, the villains must be punished.

Blame those who knew

But this popular exercise is beside the point. It is obvious that politicians and bankers made grave errors that contributed to the current crisis. But, regardless of how bad Europe’s political and financial leaders may seem, a sudden rise in the number of incompetent or immoral individuals throughout the euro zone’s periphery is not a credible explanation of this crisis. The people running Ireland and Latvia were praised as role models just a short time before they became scapegoats.

Instead, the blame should be shared by those who knew, or should have known, about the risks of giving up the ability to set interest rates in individual countries. We know that extremely low real interest rates produce massive expansion of credit. In countries with higher price growth than in Germany, but with the same borrowing costs, this cannot produce anything but overheating, higher infla-

tion, and even lower real interest rates.

To stem this flood of credit-induced demand with fiscal policy alone is impossible, and it is absurd to try. How do you tighten fiscal policy to make up for more than 100 percent of GDP in credit-induced spending power in only three years, as occurred in Ireland in 2004-2007, and in a democracy sporting a fiscal surplus, as Ireland is? To ask politicians in a democracy with big surpluses to raise taxes or cut benefits or public investment by the enormous magnitude needed to stave off disaster is to be out of touch with reality.

Inherent in the system Quite simply, the risks for small peripheral countries are inherent in the system created by the European Monetary Union. The main blame should therefore be put on the system’s founders, or those who saw the problems coming but chose not to raise a

word of warning. The dream of European unity evidently induced some to remain silent in an effort to preserve the euro project’s visionary goodwill.

Now we have awakened to an existential crisis for the common currency.

Neglecting the risks and exaggerating the benefits of the euro in order to promote short-term support for it inevitably became self-destructive.

Those who not only tolerated but actively encouraged the excesses of countries like Latvia – by making eventual euro adoption a precondition for European Union membership, and promising that it would produce only growth, prosperity, and discipline – are those who should be chased by the blame game.

Every economy needs someone who can ensure that the proverbial punch bowl is taken away when the party gets out of hand. This is what independent central bankers are for,

and that is why their independence from political interference has been enshrined in the European Treaty. But this insight is not reflected in monetary union’s design.

Smaller members of the euro zone, particularly those on its periphery and with weaker economic links to the heartland of the EMU, become vulnerable to overheating and inflation when their ability to raise interest rates is abolished. No provisions in the Treaty address this fundamental problem. Many are now suffering as a result. ● Leif Pagrotsky, a member of the Swedish parliament, is Vice Chairman of the General Council of the Riksbank, and a former Swedish Minister of Industry and Trade.

Copyright: Project Syndicate, 2011.project-syndicate.org

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COVER STORY

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OCTOBER 24-30, 2011

Józef Oleksy interview

COURTESY OF WIKIMEDIA COMMONS

The left and the ‘downfall of the West’

Józef Oleksy, a former prime minister, speaker of the Sejm and Democratic Left Alliance leader, talks with WBJ about Janusz Palikot and the decline of capitalism Remi Adekoya: Why did things go so wrong for the Democratic Left Alliance (SLD) in this month’s elections?

Józef Oleksy: There were many reasons for this. SLD made a mistake in the way it presented its program and its perspectives for the future. There was no clear message to contest the right-wing parties’ vision of Poland.

SLD said the right things but not in a way that would be clearly-heard and attractive.

The campaign was built around the leader as if it were a presidential election. The vanity of the leader, Grzegorz Napieralski, who believed too much in himself and his inex-

perienced aides was another factor.

I told Mr Napieralski once that to be a leader it’s not enough just to be elected as party chief. In order to be a leader you actually need to lead. His alliance with the Business Centre Club was also completely senseless.

What was he thinking?

Publicly flaunting his alliance with an extremely economically liberal organization like that.

Janusz Palikot also took votes away from SLD. Mr Palikot started as a troublemaker but later created for himself the image of a toughspeaking but electable leader.

Former president and SLD leader Aleksander KwaÊniewski has talked of cooperation between SLD and Janusz Palikot, who some say is the new hope of the left.

What is your opinion on this matter?

Mr KwaÊniewski speaking in the name of SLD? That is strange. After all he doesn’t represent SLD even though he remains a public figure. One of the great diseases of the left has been its leaders’ penchant for forcing their individual wills on all the rest.

We cannot start a reform of the left with Mr Palikot because he has not yet proven himself to be a leftist politician.

He hasn’t shown us his true face. I propose we watch and observe him for a while. Let’s see in what form and with what message he will want to make the news because I am sure he will want to be in the limelight, as he loves that.

Right now, he is no partner for the left. What do we need him for? He has votes in parliament but SLD doesn’t need votes right now since it is in opposition. It’s the government that might need his votes.

How might the party change under him?

Mr Kalisz is very liberal both in his social and economic outlook. He could possibly win over those voters who are quite liberal but not necessarily leftist, some who now vote Civic Platform – the so-called center-left.

Personally, though, I think the whole “center-left” tag is hogwash. You are either leftist, pro-community, support justice in society and the dignity

What about Palikot’s proposal to remove the cross from parliament?

That’s just pure political rabble-rousing.

How do you see Europe’s future?

The approaching downfall of the West is a much deeper issue than is realized today. It’s not just about financial derivatives, budget deficits and economic imbalances. It is a wearing out of capitalism, a degen-

Ryszard Kalisz is being touted by some as the best person to become the new SLD leader.

“The approaching downfall of the West is a much deeper issue than is realized today” of citizens, or not. The “center-left” tag is pure semantics, just to offset the threat of being associated with socialist ideals. I have seen so many make-overs of leftist politicians, changing their physical appearance, their views, everything just to get elected.

eration of the financial system and the impotence of those institutions which are supposed to maintain the equilibrium. Globalization is a dynamic process and this process is not regulated.

Only democratic procedures could usher in such regulation, but democracy is national, not global, so we have a global system which is unregulated and is making people increasingly anxious and scared about their future, especially in the developed world.

The G-20 is helpless, so is the G8. The World Bank and IMF are facing total reform as they were built to serve half the world when communism still existed. Right now, they are unable to grasp the processes going on in all the capitalist markets of the world. The dollar is in crisis, the euro is in crisis and there is no concept for a new world currency.

The real problem will start when the elites finally realize that the crisis cannot be ended by continuously printing money and stuffing it in banks.

What will be left for them to do then? They will have to drastically reduce consumption. This won’t affect developing countries much as consumption there is still on a low level. But it will hit the advanced countries hard and their societies will not accept this.

There will be increased popularity of radical movements, quasi-revolutionary mo-

vements, a loss of faith in the system and a lack of prospects for people. Societies will demand a new division of their nation’s wealth. Occupy Wall Street is just the beginning. It’s not a movement of those gloating over the mistakes of capitalism, it’s a movement of those who are afraid of the social consequences of the crisis in capitalism.

I see two tendencies coming from all this. One will be towards authoritarian democracy such as that practiced by the Russians and the Chinese.

People won’t resign from democracy itself because for now there is no alternative.

So we will be left with a democratic framework. But democracy is a system which ensures peace for the rich and where there is a fight for mere existence and for equality, democracy has no solutions.

If there is a revolt, the government will have to crush it or else it could spread and the whole system could go to hell, which would ruin everything. People will react by demanding a tough government.

The left must think of a new code of ethics for its activities because the code of ethics up until today has been geared towards the security of wealth and not of people.

Capitalism won’t disappear for sure but it won’t be able to function as it has up to this point. ●

Poland’s political left

Is SLD a spent force?

The poor showing of Poland’s main leftist party in October’s parliamentary elections has raised doubts about whether it can survive After exit polls on October 9 suggested the Democratic Left Alliance (SLD) had come in fifth in Poland’s parliamentary elections, with just over 8 percent of the vote, former Prime Minister Leszek Miller reacted by saying it seemed “like some kind of nightmare.”

For someone who led SLD to election victory in 2001, garnering 41 percent of the vote along the way, this result must indeed have felt like a bad dream. Never before has the party, established some 20 years ago, had so few MPs in parliament. Many are starting to say it could be a dying force

in Polish politics, so dramatically has the level of its support fallen.

The current leader of the party, the much-criticized Grzegorz Napieralski, has said he will not contest the leadership of SLD at the party’s next congress, which is expected to be held in January next year.

New competition At the same time, SLD now has competition from Palikot’s Movement (RP), the party led by the eccentric former Civic Platform (PO) politician Janusz Palikot. RP is positioning itself as a leftist party which supports the rights of sexual minorities, the separation of church and state, and the liberalization of abortion laws.

But RP’s economic program is far from left-wing. Mr Palikot’s party supports a flat tax, which is a anathema to tra-

ditional leftist voters. PO once propagated a flat tax but gave up on the idea. So there is a significant question as to how accurate it is to label Mr Palikot’s party “leftist.”

RP has nevertheless been credited with taking away a significant amount of support from SLD. But why was a party whose economic philosophy positions it so far away from the left able to do this, and how strong is its grip on former SLD supporters? Is SLD’s time as the dominant force on the left really over, or is support for RP just a fad which will fade away in the future, leading leftist voters to flock back to SLD?

Old left and new left “There are two main reasons for SLD’s poor showing. One is poor leadership and a poor campaign, the other, more important one is the weakness

and confusion of their program,” said Miros∏awa Grabowska, head of the polling institute CBOS. “SLD doesn’t know whether to serve those voters who are weaker economically or the various minority groups. In Poland it’s difficult to serve both at the same time,” she added.

There is no doubt that under Mr Napieralski SLD has seemed confused about which voters to focus on.

According to Ms Grabowska, the first group of potential leftist voters constitutes less affluent Poles, who are usually poorly educated, very religious, or at least conservative and traditional in their opinions.

These voters aren’t concerned about feminism or gay rights but are very receptive to leftist economic slogans and the idea of a welfare state.

The second category of would-be leftist voters, those

for whom social issues such as separation of church and state are important, are usually well-educated, well-paid and are more pro-business in outlook. They, on the other hand, tend not to be so concerned with the problems of the less well off, Ms Grabowska said.

In recent years, Law and Justice (PiS), which combines social conservatism with leftist economic philosophies, has succeeded in winning the support of many of Poland’s less well-off, leading some to deem it “the party of the frustrated.”

Meanwhile, Mr Palikot has focused on the second group of leftist voters.

“This is a problem for leftist parties not only in Poland,” said Ms Grabowska. “Even in Germany, there is the old left and the new left – by the new left I mean the Greens. SLD doesn’t know if it wants to be new left or old left,” she added.

Remi Adekoya However, when WBJ spoke with Leszek Miller, the new head of the party’s parliamentary caucus, the former prime minister seemed to be in favor of the “new left” option.

He stressed that SLD needed to focus on minority rights and the separation of church and state while pursuing an economic policy of “equal opportunities for all,” and not the old-school socialist philosophy of “equal stomachs for all,” which held that it was unfair for rich people to be able to eat more than poor people, though they had stomachs of the same size.

Although it is not yet clear who will become the new party leader, one of the favorites, Ryszard Kalisz, is likely to share Mr Miller’s viewpoint.

Mr Kalisz is known to have both socially and economically liberal views.

COVER STORY

OCTOBER 24-30, 2011

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13

Leszek Miller interview

Explaining SLD’s ‘nightmare’ announce any kind of cooperation with Mr Palikot.

REPORTER

People know what Law and Justice (PiS ) stands for, while many vote for Civic Platform (PO) because they see it as a buffer against PiS, whom they fear. What does SLD stand for?

Firstly, we should place emphasis on minority rights, the separation of church and state. Secondly, we should emphasize the need for equal opportunities for people and, thirdly, for an effective market economy – although we must remember that the market cannot be the answer for every single area of our society.

Leszek Miller, the current Democratic Left Alliance parliamentary caucus leader and former prime minister, talks with WBJ about SLD’s failings and Poland’s foreign policy

Why have these young leaders been unable to win the support of Poles, not just Grzegorz Napieralski, but also the former leader Wojciech Olejniczak?

Can SLD come back?

So what is the chance that SLD can recover?

“I see two possible scenarios for SLD. The first is that they will recover under a new leadership and slowly regain their position. The second is that Mr Palikot, who is very active, will continue bringing controversial social issues to the public agenda and will be very present in the media, which would be bad news for SLD,” said Sergiusz Trzeciak, a political analyst at Collegium Civitas.

“If things don’t start looking better for SLD, some frustrated members could leave the party and join PO or RP. I don’t think SLD will disappear, but things could still get worse for them,” he said.

Palikot’s future So does Mr Palikot’s party, which gained 10 percent sup-

Both of them lacked two qualities essential for a political leader: prestige and respect.

When Donald Tusk or Jaros∏aw Kaczyƒski are addressing an audience you can feel the crowd treats them with respect. It was very easy to attack Grzegorz Napieralski in the recent campaign because he never managed to build such a position for himself.

You said recently that Janusz Palikot is a colorful bird who has brought other colorful birds with him to parliament.

Do you foresee a situation in which SLD would cooperate with him?

I think it’s much too early to

Can SLD today outdo Palikot in the bid to be perceived as a genuinely socially-liberal party?

No, we probably won’t be able to do this. Mr Palikot can only be defeated with a longer-term strategy. After a year of being

port in the last election, have the potential to increase the size of its electorate?

“I think there is room for another two, three, maybe five percent. I don’t think their support could go beyond that unless SLD were to completely disappear from the scene,” said Mr Trzeciak.

He also said that he expected RP to try and entice some SLD MPs to cross over to his party, but suggested that Mr Palikot’s party could lose support if it were to do so, since luring veteran SLD politicians wouldn’t fit with its image as an anti-establishment force.

CBOS’s Miros∏awa Grabowska said Mr Palikot has been playing the role of a mature and responsible politician since the election, which could benefit his party.

“If he is able to maintain this delicate balance between radicalism and legalism, then he

“SLD cannot be a party that says “no” for the sake of saying no” From what position do you feel SLD should criticize the PO-led government?

SLD cannot be a party that says “no” for the sake of saying no. It should say “no” because we think a better idea would be X or Y. And in matters we agree on with the government, I see no reason why we should obstruct them.

But I would criticize PO from positions they would not expect: On their unwillingness to implement reforms, and on the fact that they lack the courage to make the changes Poland needs to move forward. Now is not the time for the government to be playing it safe; with all the necessary political institutions in its hands it is time for PO to present a reform package to deal with the public finance situa-

tion and also to bolster Poland’s economic growth.

If spending is reduced, for example, on institutions not essential to the state’s functioning, then the government should work towards making the business environment friendlier for investors and entrepreneurs in Poland.

I would also criticize them on the social issues which need to be advanced, such as [state subsidies for] in vitro fertilization, which should be treated as a fight for life and not a fight against life.

As prime minister you oversaw Poland’s accession to the EU. What do you think of the PO government’s foreign policy?

Compared to what went on when PiS was in power, there has been a definite improvement. But Poland can only have a strong position in the EU if it specializes in a certain sphere. So people say “Ah, Poland, Poland is the best in ...”

So what could that sphere be? In my mind it should be the EU’s eastern policy.

Poland should be an expert on eastern affairs, the country that knows how to get things done there and can help other EU members’ relations with those countries. But to do that, we need good relations with countries like Russia and Ukraine.

Meanwhile, some influential circles in Poland think that the worse our relations with Russia are, the better our posi-

tion in NATO and our relations with the US will be.

That’s completely false. Good relations with Russia are useful in our position in NATO and our relations with the US. On the Western front, key are relations with Germany.

That is the priority. We need less ideology and more pragmatism in our policies. For years, our geographical position between Germany and Russia, was considered a curse.

But today, I think we could turn that into a blessing.

You are well-informed of what the Russian political elite is thinking. In private conversation, what do they tell you about their intentions for relations with Poland?

I am a member of a certain club that meets once a year in Russia. There are usually people from the US and from many other countries in the world there, the Russian president and prime minister attend too. Honestly speaking, if I didn’t mention Poland in those meetings, then nobody would.

Poland doesn’t exist in the Russian political elites’ minds when talking of global geopolitics.

They are focused on the US, China and relations with the EU but not the EU as a whole, just Germany, France and Italy, at least for as long as Berlusconi is in charge there. We are not a priority for Russia. ●

SHUTTERSTOCK

Remi Adekoya: On election night you said the Democratic Left Alliance’s (SLD) election result was like a nightmare.

What caused that nightmare?

A million people who voted for SLD during the last elections either chose somebody else or stayed at home this time around. Even those who belonged to our core electorate stayed at home. We need to find out what signal from the party they expected but did not receive.

How is it that the conservative Law and Justice party has managed to woo many former leftist voters?

PiS has an offer based on the primitive premise that “everyone has an equal stomach [and therefore should have an equal amount to eat].” – oldschool socialism. Like I said, we believe in creating equal opportunities for people, not stating that everyone has an “equal stomach.” But for some in our society, that argument is music to their ears.

in parliament, we can ask people: Ok, Palikot said he would legalize marijuana; has he done it? Palikot promised he would remove the cross from parliament; has he done it?

Then we would ask people if they really want such a leader, somebody who talks a lot and promises the skies but is unable to deliver.

Grzegorz Napieralski tried to put on a brave face during election night could still gain more support,” she added.

Work cut out In the end a lot will depend on SLD’s new leadership and Mr Palikot’s behavior in parliament.

Much will also depend on

world events. If there is a drastic worsening the economic situation in Europe and, by extension, Poland, then the controversial social debates Mr Palikot has thrived on will certainly take a back seat to breadand-butter issues. Moreover,

his liberal economic philosophies might start to grate on frustrated voters, especially since they know that Mr Palikot is a millionaire himself.

SLD’s new leader will certainly have his or her work cut out. It will undoubtedly be an

uphill task to win back disappointed voters, but a party which has produced a two-term president, three prime ministers and three parliamentary speakers over the last two decades should not be written off just yet. ●

COVER STORY

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PiS prepares to rebrand The Law and Justice (PiS) party is currently preparing a new strategy, following its second-place finish in the recent parliamentary elections, reported Rzeczpospolita.

According to the daily, the party intends to rebuild its image as centristconservative. The party has said it wants to offer more support for Polish families, and to promote Christian and patriotic values, while avoiding language that would allow the ruling Civic Platform to brand it as radical.

Talks on new government Donald Tusk, the leader of Civic Platform (PO), and Waldemar Pawlak, the leader of the Polish People’s Party (PSL), met with President Komorowski last Wednesday to discuss the formation of a coalition government. Prior to the meeting, Mr Pawlak said PSL was aiming to maintain its current ministerial positions in the ministries of economy, labor and agriculture.

Warsaw wants z∏.4 billion loan Warsaw is applying for a z∏.4 billion loan from the European Investment Bank, Rzeczpospolita reported. The money is reportedly needed to cover construction costs of the A4 highway and S17 expressway. The Polish side has estimated total project costs at some z∏.8 billion and wants to borrow half from the European Union’s bank to help fund the infrastructure improvements.

Poland: more competitive, less innovative According to a report by the European Commission, Poland weathered the last financial storm reasonably well and is now strengthening its position as a stronghold of regional industrial production and business services. But there are traps on the road to continued growth: infrastructure shortcomings, a bloated administration and a lack of innovation at the country’s companies, the European Commission says. ●

OCTOBER 24-30, 2011

W∏odzimierz Cimoszewicz interview

What next for Poland, the left?

Independent Senator W∏odzimierz Cimoszewicz, a former prime minister and former member of the Democratic Left Alliance party, talks to WBJ about the political scene following Civic Platform’s election victory Ewa Boniecka: What do you expect from the newly elected government led by Civic Platform (PO)?

W∏odzimierz Cimoszewicz: The fact that this is the first time in over 20 years of an independent Poland that the same party will be in power for a second term means that the victorious Civic Platform and its leader Donald Tusk have gained an unusual chance. I deliberately use the word “unusual,” pointing to the time when I led the government. We began some important reforms but did not have the chance to implement them.

Donald Tusk and his party have won a chance to continue pursuing their goals and I look at Civic Platform’s success in winning a second term to be of value for our present political scene. We will have in power a predictable party, which avoids radicalism and international quarrels and is strongly proEuropean. It will also hopefuly draw on some of the lessons from its less fortunate experiences. At the same time such a decisive victory obliges Civic Platform to use its election capital effectively to deal with the country’s problems, and to do so with new energy and much more determination than it showed previously.

Donald Tusk will have a strong political position and time to work out a response to the European financial crisis, which is knocking on our door.

So, I hope that the new government will present a more innovative and ambitious policy at home and in Europe. But as to the question of whether such a hope will materialize – I have no answer at the present time.

Poland will soon complete its term as president of the European Union. How should it, and other EU members, act in this time of financial and political difficulty?

In my opinion Poland and other members of the European Union should act vigorously to strengthen the process of integration in the EU in all spheres: economic, financial and in terms of general policy.

The EU still represents significant economic potential – we account for around 20 percent of the world’s GDP, yet because we are not united [politically] we are not playing an accordingly big political role. There are emerging new economic and political powers – like China, India and Brazil –

and transatlantic relations are going through changes. The US is looking towards other big world players, towards the Pacific region, and while American leaders say many friendly things about Europe, the US cares less than it once did about its ties with our continent.

Given these new conditions, if Europe does not speed up its integration and strengthen its political identity, the European Union will lose its influence in all international bodies that make global decisions. And I have to say that while the Polish president and prime minister are saying all the right things, for example that we “need more Europe, not less,” I do not know whether our leaders will be ready to elaborate on more detailed proposals for pushing forward the process of EU integration. I am still waiting for this, because I am deeply convinced that the future of Poland is tightly linked with the future of a strong Europe.

The Democratic Left Alliance (SLD), after a disastrous election, will have a relatively small number of MPs in the Sejm. How do you see the future of that party following the announcement by leader Grzegorz Napieralski that he will be stepping down?

He should have resigned immediately after the election and the party should not delay

COURTESY OF MICHA¸ ROZBICKI

14

Mr Cimoszewicz thinks SLD, and the European left in general, needs to reinvent itself other leftist groups, such as social organizations, trade unions and civic societies.

It was a very large coalition, very pluralistic, rich in ideas, and SLD gathered many interesting people. We sometimes differed amongst ourselves, argued about problems, but we were for a long time a cooperative team, loyal towards each other, with the will and energy to act with people from all walks of life.

Now, due to its own choices, SLD has become a sort of sect, fighting with other leftist groups, and is afraid of people speaking their own minds and

“SLD should undertake serious political therapy and not even consider [what would be] grotesque cooperation with Palikot” the process of making complete changes on all structural levels and on conducting a deep analysis of the failures of its present policy.

In the last few years I had warned many times that SLD is mistaken in pursuing its dogmatic political line and its narrow way of functioning. [SLD] alienates itself from many groups in society, avoiding fresh thinking and pushing aside people who have their own ideas and incentives.

When we established SLD 20 years ago, together with Aleksander KwaÊniewski, the party was based on an entirely different concept than it is today.

We had ideas of unifying all types of people on the left and on building cooperation with

having their own authority.

Such a party cannot reach voters and its rhetoric and radical slogans fail to hide its political emptiness.

Are you going to be involved in the process of rebuilding SLD? It depends on what happens next. If the functionaries of SLD play for time, searching for reasons to excuse their own defeat and for arguments for the continuation of the present political line, I will not involve myself because I would be joining a road that leads to the end of the party.

If, on the other hand, there is a more serious debate about why the situation is so bad and ideas are put forward about

building an open, liberal, strongly pro-European, center-left political formation … that will allow the party to reach the people and attract young, ambitious Poles, then I will involve myself. I have many conclusions and ideas in that respect, so I think I could be helpful.

Do you think that SLD could profit by establishing some sort of cooperation with Palikot’s Movement?

I would strongly advise SLD against any cooperation with Palikot’s Movement. It is a very enigmatic formation, built by one man, taking his name at its banner, and it is not a coherent political body.

In my opinion Janusz Palikot is a politician with very little credibility, who changed from hard conservative to a radical leftist. Apart from various radical slogans, he has not presented any sort of political program. SLD should undertake serious political therapy and not even consider [what would be] grotesque cooperation with Palikot.

Is a division of politics in the left and right still meaningful when looking at the situation in Europe?

It still exists, but the left is now in retreat in Europe. In the spheres of economic and social policy ... many earlier leftist postulates were absorbed by mainstream parties.

The left, which speaks in the language of the 19th century, is rejected today because workers and employees now have different problems, like

paying mortgages, educating their children and adjusting their qualifications to changing markets. This means the left has to move towards the center of the electorate.

Nevertheless, there are many domains, like ethical values, the relationship between citizens, civil liberties, the position of minorities and the role of the church in public life, in which leftist and conservative parties have different stances.

I think that those issues will play a more and more important role in Poland because the young generations, who are better educated and know the world better, have a different perspective.

In my opinion, in Poland we now have a very unbalanced set-up between right and left, so there is a place for a leftist party in our country, but it must have the knowledge, imagination and ability to communicate with people and has to learn to respond to their changing expectations and needs.

And it is fair to say that the European left is still searching for adequate responses. I think that leftist parties should look into the distant future and search for paths to development that would provide people with good living conditions, as well as increased tolerance and respect for human rights. At stake is whether Europe will defend millions of its jobs and our right to live according to European democratic values and traditions … and play a significant economic and political role in the world. ●

IVG has acquired the N21 office building in Warsaw

LC Corp has launched construction on its Wola Center

16

17

LOKALE IMMOBILIA

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

•

OCTOBER 24-30, 2011 LI 16/42

Office

Cosmopolitan Twarda 2/4 cornerstone Developer Tacit Development Polska and contractor Hochtief Polska have laid the cornerstone at the construction site of the Cosmopolitan Twarda 2/4 residential skyscraper project in Warsaw. The scheme, which is located on ul. Twarda in the capital’s central district, has been under construction since May 2010 and is scheduled to be completed in mid-2013.

The Cosmopolitan Twarda 2/4 project will be comprised of a 160 meter tower with 250 apartments and an accompanying fivefloor structure housing office and service space. ●

In this issue GTC offloads Warsaw park . . .15 Stary Browar sale . . . . . . . . . . .15 Mokotowska Square opening 16 N21 building sold . . . . . . . . . . . .16 Lipiński Passage agent . . . . . . .16 Property-related stocks . . . . . .16 Wola Center construction . . . .17 Equator II open . . . . . . . . . . . . . .17 PPG in Poznań . . . . . . . . . . . . . . .17 Business Garden architects . .18 Warehouse leases . . . . . . . . . . .18

Allianz Real Estate Germany will be the new owner Warsaw Stock Exchange-listed developer Globe Trade Centre last week signed the terms of an agreement for the sale of its Platinium Business Park office complex in Warsaw. The property will be purchased by Allianz Real Estate Germany.

The development, which is located at the intersection of ul. Domaniewska and ul.

Wo∏oska in the capital’s Mokotów district, consists of four completed buildings with a total of approximately 44,000 sqm, one under construction building of 11,000 sqm and a plot with a building permit offering 13,800 sqm.

In a statement, GTC wrote that it “expects that upon the transaction approval and closing, the sale of Buildings 1-4 will generate free cash of approximately €40 million.”

The sale of the last two properties is dependent on Allianz Real Estate achieving

Platinium Business Park will consist of approximately 44,000 sqm be worth approximately €1013 million.

If all conditions are met, the closing of the first transac-

certain leasing and construction thresholds. If full occupancy is achieved for these properties, the sale of each will

tion is expected to take place in December 2011, the sale of building five by the third quarter of 2012, and the sale of the

plot of land during 2013.

Describing the development on its website, the firm says Platinium Business Park “combines the finest architecture with experience in creating flexible and perfectly equipped office space. The property is fully suited to the needs of the most demanding tenants seeking a modern office in the capital of Poland.”

Tenants currently leasing space at the development include Peugeot, CB Richard Ellis, Panasonic, and Levi Strauss.

GTC currently develops projects and manages completed properties in three key sectors of real estate: office buildings and parks, retail and entertainment centers, and the residential sector. The firm has developed approximately 900,000 sqm of net space and is currently the owner of completed commercial properties with a combined net area of about 544,000 sqm.

David Ingham

Atrium’s Hedan set to buy Stary Browar Poland’s competition regulator, UOKiK, has agreed to Atrium European Real Estate’s Hedan taking over the two companies that own and manage Stary Browar, a shopping, arts and business center located in the western Polish city of Poznaƒ.

Fortis, a development company owned by Gra˝yna Kulczyk, the ex-wife of Polish billionaire Jan Kulczyk, is selling the property. If the purchase is finalized, Hedan will own 100 percent of both subsidiaries. A final agreement of purchase and sale has reportedly not yet been signed.

Fortis’ management wants to sell the Poznaƒ-based facility because it is getting ready

to take over an international firm, the company said.

Stary Browar, which cost €130 million to develop, is located on Poznaƒ’s ul.

Pó∏wiejska 42 and has around 130,000 sqm of total area, housing 210 stores and restaurants. In 2008, it was awarded the title of Best Shopping Center in the World by the International Council of Shopping Centers.

In addition to being a retail property, Stary Browar has also functioned as an art center owing largely to the initiative of Ms Kulczyk. It is unknown yet whether her Art Stations Foundation in the building will continue under the new owner. Ella Pa∏ka

COURTESY OF WIKIMEDIA COMMONS

Samsung Electronics has leased over 1,500 sqm in the Zebra Tower office building in Warsaw.

Following the transaction, there are currently only around 1,600 sqm of available space in the property, which comprises 17,000 sqm of office and 800 sqm of retail space.

Zebra Tower was developed by Austrian developer S+B Gruppe; the facility obtained its occupancy permit in December 2010.

GTC agrees to Platinium sale

COURTESY OF GTC

COURTESY OF S+B GRUPPE

Samsung in Zebra Tower

Poznaƒ’s Stary Browar cost €130 million to develop

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

LOKALE IMMOBILIA – REAL ESTATE

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Developer ATAL has launched construction on its Zielone Wojszyce residential project in Wroc∏aw, Lower Silesia voivodship. Located on the city’s ul. GrotaRoweckiego, the z∏.45 million project will comprise two threestorey buildings offering a total of 135 housing units. Completion is scheduled for the last quarter of 2013. ATAL is currently building 10 schemes in cities including Kraków, Katowice, ¸ódê and Wroc∏aw.

Ferio Gaj gets manager Jones Lang LaSalle was appointed property manager for the Ferio Gaj shopping center, located on ul. Âwieradowska 5157 in Wroc∏aw, Lower Silesia voivodship. The retail facility, which opened in November 2005, comprises a total of 10,800 sqm of space. Its tenants include Piotr i Pawe∏, Eldom, and Jysk . ●

Office space

Yareal opens Mokotowska Square The project involved complete revitalization of the building Developer Yareal Polska last week officially opened its Mokotowska Square office project in downtown Warsaw.

Located on the capital’s ul.

Mokotowska, the investment was under construction for the past 18 months and involved a complete revitalization of the former Metalexport headquarters building.

“The revitalization of a building located at the very heart of Warsaw, in a densely developed area protected by heritage preservation authorities, was a huge challenge for the Yareal Polska team. We are proud that due to our efforts the former Metalexport office building is again teeming with

life,” Eric Dapoigny, president of Yareal Polska’s management board, said in a statement.

Mokotowska Square is a seven-storey building offering 8,645 sqm of class-A office space and 1,286 sqm of retail and service space. The facility is characterized by high-quality finishing materials and modern office solutions including suspended ceilings, raised floors and air-conditioning and access control systems. Yareal Polska is planning to obtain BREEAM certification for the property.

A subsidiary of Yareal International, Yareal Polska is present in the office and residential sectors of the Polish property market and is arguably best known in the country for its Renaissance office building in Warsaw’s central district. Ongoing proj-

COURTESY OF MEDIADEM COMMUNICATION

ATAL launches Wroc∏aw project

OCTOBER 24-30, 2011

The seven-storey Mokotowska square building is located in downtown Warsaw ects of the company include the Rezydencja Bia∏a and

Ho˝a 55 housing schemes in the Polish capital.

Adam Zdrodowski

IVG acquires Warsaw’s N21 from SwedeCenter IVG Warschau Fonds, an investment fund managed by IVG Immobilien’s IVG Institutional Funds, has acquired the N21 office building in Warsaw from SwedeCenter, the Polish property development business of the Inter IKEA Group. The value of the trans-

action, in which IVG was represented by Colliers International and Salans, amounted to approximately €15 million.

The N21 development is located on ul. Nowogrodzka in Warsaw’s central business district and was completed by SwedeCenter in 2008. The

Property-related stocks Security

Closing price on Oct 20

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

72.10

-2.57

64.00

109.20

-24.19

25,530,098

1,840.72

CELTIC

20.30

7.98

15.55

60.55

N/A

34,068,252

691.59

DOMDEV

28.70

14.80

23.50

50.80

-37.53

24,560,222

704.88

ECHO

3.50

-8.14

3.24

5.55

-30.69

420,000,000

1,470.00

ELBUDOWA

106.00

-1.30

98.00

180.00

-40.45

4,747,608

503.25

ENERGOPLD

2.49

-7.78

2.45

4.10

-34.13

70,972,001

176.72

ERBUD

20.00

5.54

14.70

61.00

-60.78

12,644,169

252.88

GANT

7.74

-7.86

7.30

19.70

-59.26

20,499,953

158.67

GTC

11.70

-4.49

9.33

24.98

-48.44

219,372,990

2,566.66

HBPOLSKA

0.79

-7.06

0.70

3.38

-76.20

210,558,445

166.34

JWCONSTR

7.34

-4.05

6.10

18.00

-56.82

54,073,280

396.90

LCCORP

1.07

-1.83

0.85

1.69

-33.95

447,558,311

478.89

MARVIPOL

8.63

11.07

7.22

12.81

-19.35

36,923,400

318.65

MIRBUD

2.50

-1.57

2.25

4.75

-36.87

75,000,000

187.50

MOSTALWAR

23.90

-4.40

19.70

68.00

-62.06

20,000,000

478.00

MOSTALZAB

1.26

-2.33

1.07

3.55

-62.83

149,130,538

187.90

ORCOGROUP

16.65

-5.24

15.70

40.00

-42.84

17,053,866

283.95

PBG

80.00

-3.03

56.05

226.00

-64.29

14,295,000

1,143.60

PLAZACNTR

2.05

5.13

1.80

5.15

-58.75

297,174,515

609.21

POLAQUA

7.50

-3.85

7.50

20.60

-56.37

27,500,100

206.25

POLIMEXMS

1.62

-4.71

1.23

4.30

-61.88

521,154,076

844.27

POLNORD

13.15

-6.00

11.03

37.38

-63.98

23,798,439

312.95

RANKPROGR

9.20

-1.92

8.64

13.60

-8.55

37,145,050

341.73

ROBYG

1.10

2.80

1.04

2.13

N/A

257,390,000

283.13

RONSON

0.99

4.21

0.94

1.66

-37.74

272,360,000

269.64

TRAKCJA

1.77

1.14

1.39

4.97

-61.85

232,105,480

410.83

ULMA

61.50

-0.65

57.00

88.00

-23.51

5,255,632

323.22

UNIBEP

6.05

-1.94

4.47

10.30

-27.46

33,927,184

205.26

WARIMPEX

5.10

-11.61

5.10

10.89

-42.70

54,000,000

275.40

ZUE

7.46

-9.14

7.46

15.14

N/A

22,000,000

164.12

nine-level facility offers boutique office areas to 19 tenants. All of its 3,500 sqm of class-A office space is currently leased out.

“We are pleased to add N21 to our growing Warsaw office portfolio and appreciate the property’s central location

and high quality specification.

N21 is the second building acquired for the recently launched IVG Warschau Fonds, which targets a total volume of €250-300 million,” Maciej Zajdel, managing director of IVG Poland, said in a statement.

The purchase of N21 marks the fourth office building acquisition in Warsaw by IVG for its various funds over the past 12 months. The company has purchased the Victoria Building, BTC and Ujazdowskie 10 schemes in the Adam Zdrodowski capital.

Savills appointed leasing agent for Lipiƒski Passage

COURTESY OF SAVILLS

16

The Lipiƒski Passage has leased out over 50 percent of its retail units Union Investment Real Estate, a Hamburg-based real estate investment company, has appointed Savills, a global real estate advisory and management firm, as the sole leasing agent for its Lipiƒski Passage mixed-use building in Warsaw’s Central Business District.

Built between 1897 and 1898, Lipiƒski Passage houses both retail and office space and is located in one of Warsaw’s prime locations – on the corner of Al. Jerozolimskie and ul.

Emilii Plater, near the Marriott

hotel and the Palace of Culture and Science.

Sebastian Âwistak, senior negotiator from Savills in Poland said, “thanks to the extensive experience of a strong team of specialists and a forward-thinking investor, Lipiƒski has been crafted into a stylish shopping passage and luxury office [building].”

The property obtained an occupancy permit last month.

Most recently, Starbucks opened a large two-storey cafe in Lipiƒski Passage, marking its

eighth location in Warsaw and 16th in Poland.

The building comprises 6,000 sqm of leasable space, 2,500 sqm of which is designated for retail and 3,500 sqm for office space. So far, over 50 percent of the retail units have been leased out.

Union Investment Real Estate is an investment firm with holdings in 26 countries. It manages five open-ended real estate funds with assets of around €19.2 billion.

Ella Pa∏ka

LOKALE IMMOBILIA – REAL ESTATE

OCTOBER 24-30, 2011

www.wbj.pl

Office

Construction starts on Wola Center Developer LC Corp has launched construction on a new office scheme on Warsaw’s ul. Przyokopowa, opposite the Warsaw Rising Museum. Called Wola Center, the development will bring approximately 31,000 sqm of leasable office space to the market.

It will consist of four interconnected buildings, each of which will have a separate reception area, and a covered patio section. The scheme will have its own management system, 16 high-speed elevators and a two-level underground parking area. All offices will

COURTESY OF JONES LANG LASALLE

The scheme will bring around 31,000 sqm of leasable office space to the Warsaw market

Wola Center is scheduled for completion in Q3 2013 have air-conditioning with heat recovery and suspended ceilings.

Completion of the development is scheduled for the third quarter of 2013, to coin-

cide with the end of work on Warsaw’s second subway line: A station on the line is due to

be built at the Rondo Daszyƒskiego roundabout, about 200 meters from the scheme.

“Wola Center is an office project located in Warsaw’s emerging financial center.

This part of the city has proved to be a popular address for many banks and financial institutions. With regard to its convenient public transport and the planned development of the second underground line, the location appears to be a natural extension of Warsaw’s city center,” Micha∏ Lis, senior office agency consultant at Jones Lang LaSalle, said in a statement.

Budimex is the project’s general contractor. The scheme was designed by the Kury∏owicz & Associates architectural studio.

Gareth Price

Equator II office building opens PPG to build 10,000-sqm “Today we are proud to announce that 76 percent of Equator II was let during the construction stage of the project and that there are still a number of potential tenants who are interested in leasing space in the building,” Ms Ka∏u˝na said in a statement.

The Equator II project com-

office building in Poznaƒ

prises 21,000 sqm of class-A office space on 13 floors, which will be occupied by tenants including WSiP, Regus and AON. The facility’s parking lot, located on four underground levels, offers spaces for over 250 cars. PORR was the general contractor of the development.

Adam Zdrodowski

COURTESY OF JONES LANG LASALLE

The Equator II office building in Warsaw obtained its occupancy permit and officially opened for business earlier this month. The facility, which was developed by Zenith Real, a subsidiary of the Karimpol Group, is the second phase of the Equator Offices complex located on Al. Jerozolimskie in the capital’s Ochota district.

“The Karimpol Group is very pleased that the building was completed on time and we were able to deliver the premises to first tenant to move in, namely Medicover,” Martin Prokes, a representative for the Karimpol Group, said in a statement.

Ewelina Ka∏u˝na, associate director at Jones Lang LaSalle, the leasing agent for Equator II, pointed out that the decision to construct the facility was made during difficult times and that many other projects scheduled to be delivered this year did not manage to obtain bank financing.

The Equator II office building is located in Warsaw’s Ochota district

NewConnect-listed developer Platinum Properties Group (PPG) has obtained a planning decision for an office building that the company wants to build in Poznaƒ, Wielkopolskie voivodship.

The planning decision means the developer is now able to apply for a building permit for the scheme.

The class-A facility, which will deliver some 10,000 sqm of office space, will be sitting on land on the city’s ul. Obornicka. PPG announced the acquisition of the plot for z∏.15.4 million in May this year.

“The commercial properties sectors is, apart from the residential sector, an important area of building the value of PPG. By obtaining the planning decision within a short period of time we have confirmed our efficiency and competence in the developer sec-

tor,” Gustaw Groth, vice president of PPG’s management board, said in a statement.

He added that according to the company’s analyses, Poznaƒ is a promising office market and a shortage of modern space is expected to soon be felt in the city. In terms of residential investments, PPG is now laying its hopes on the Moscow market which it sees as stable and having large development potential.

The developer, which wants to list on the Warsaw Stock Exchange’s main market next year, says it will build a major residential and commercial investment near Moscow in the near future. In Poland, the company is currently involved in projects including the Rezydencja Naruszewicza luxury apartment building in Warsaw’s Mokotów district.

Adam Zdrodowski

17

3 Stawy mall BREEAM certified Apsys Polska, the manager of the Centrum Handlowe 3 Stawy shopping center in Katowice, Silesia voivodship, has obtained a BREEAM In-Use certificate for the facility.

The investment is the first Polish project to have been granted the certificate, which is given to existing schemes that comply with a number of restrictive environmental performance requirements. Owned by Union Investment, the Centrum Handlowe 3 Stawy mall was developed in 1999 and has recently been modernized so that its operating costs are lowered.

First tenant at Segro’s SBU Power and automation technologies company ABB Polska has leased over 1,800 sqm of warehouse, office and social space at Segro’s small business unit (SBU) project within the company’s Tulipan Park ¸ódê, becoming the first tenant at the facility.

The transaction was brokered by real estate agency Axi Immo.

Segro’s SBU investment comprises 3,400 sqm of modern business space, with the smallest leasable modules available at the facility sized 750 sqm. “Since the very beginning of our operations in Poland we have been focused on delivering high-quality business space that meets the market’s current requirements,” Waldemar Witczak, regional director Segro CEE, said in a statement. ●

18

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

OCTOBER 24-30, 2011

The third quarter of 2011 was a record period in terms of the volume of lease transactions concluded in the Polish warehouse market. The more than 550,000 sqm of space taken up in Q3 marked a 9.5-, 38- and 45-percent increase on Q2 2011, Q1 2011 and Q3 2010, respectively, according to a recent report by Colliers International.

New agreements accounted for 67.6 percent of the total volume of lease deals in Q3 this year while expansions and renegotiations accounted for 7.3 percent and 25.1 percent,

respectively. Compared to the second quarter of 2011, the shares of new agreements and expansions increased by 17.5 percent and 7 percent, respectively, while that of renegotiations dropped by almost 20 percent.

Almost 255,000 sqm of modern warehouse space was delivered to the Polish market in the first three quarters of 2011, of which more than 112,000 sqm, in six projects, were completed in Q3. The vacancy rate decreased by three percent compared to the previous

quarter and amounted to 11.3 percent.

Currently, more than 330,000 sqm of warehouse space are under construction with approximately 40 percent of the volume being expected to be delivered this year. Some 66.5 percent of the under-construction space has already been leased and with the vacancy rate continuing to drop, one can expect a larger number of speculative projects to emerge, the Colliers International study said.

Adam Zdrodowski

Selected warehouse lease transactions in Q3 Tenant

Area (sqm)

Project

Amica

30,000

Poznaƒ Logistics Centre I

Metsa Tissue

27,000

BTS Krapkowice

Jeronimo Martins

20,300

Point Park Mszczonów

LG Electronics

18,000

Tengelmann Kàty Wroc∏awskie

˚abka

15,000

Segro Industrial Park Tychy

Nagel

11,200

Panattoni Park Âwi´cice II

Wilson & Brown

10,500

Manhattan Business & Distribution Center

Kamis

10,000

Prologis Park Nadarzyn

Textil Market (Grupa Redan)

10,000

Panattoni Park Mys∏owice

Schenker

7,500

Kraków Airport Logistics Centre Source: Colliers International

Green ideas at work!

Kinnarps Polska Sp. z o.o.

02-819 Warszawa, ul. Puławska 354/356, tel. (+48 22) 314 64 70-74 61-696 Poznaƒ, Al. SolidarnoÊci 46, tel. (+48 61) 657 93 55-57 40-500 Katowice, ul. Alpejska 3, tel. (+48 32) 205 10 02-03 30-415 Kraków, ul. Wadowicka 6D, tel. (+48 12) 295 08 90-92 ul. Szwedzka 5, Bielany Wrocławskie, 55-040 Kobierzyce tel. (+48 71) 38 00 200 81-537 Gdynia, ul. Łu˝ycka 6, tel. (+48 58) 622 26 31-32 91-848 Łódê, ul. Inflancka 71, tel. (+48 42) 659 71 91 info@kinnarps.pl www.kinnarps.pl

COURTESY OF SWEDECENTER

Record transaction volume for warehouse space in Q3

APA Wojciechowski to design Bausiness Garden Wroc∏aw The APA Wojciechowski architectural studio has been chosen to design the third and largest of SwedeCenter’s environmentally friendly Business Garden business parks.

Called Business Garden Wroc∏aw, the scheme will be located at the intersection of ul. Legnicka and ul. Dàbrówki, next to the Wroc∏aw Miko∏ajów Train Station. The scheme will be constructed on a sevenhectare plot and will comprise eight buildings providing a total of 120,000 sqm, mainly devoted to office space.

“Wroc∏aw is a strongly developing business center

which is attracting representatives of the IT and business process outsourcing sectors, resulting in a healthy and stable office market. The construction of the Business Garden creates a ... more tenant friendly office solution for leading local and international occupiers,” Roger Andersson, country manager for SwedeCenter, said in a statement.

Making the decision to appoint APA Wojciechowski, SwedeCenter took into account the holistic approach of the firm, its flexibility in arranging space and its experience in the application of

the concept of sustainable development design, SwedeCenter said.

SwedeCenter’s other two Business Garden projects are situated in Warsaw and Poznaƒ. Business Garden Warsaw, which will provide a total of 90,000 sqm of office, hotel, restaurant and conference space, is currently under construction with the first phase set for completion in September 2012. Space in the first phase of Business Garden Poznaƒ, which will provide 80,000 sqm, will become available from 2013.

David Ingham

MARKETS

OCTOBER 24-30, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

S&P500

FTSE100

DAX

No end in sight

NIKKEI225

11,541.78 (Oct 20 close)

2,598.62 (Oct 20 close)

1,215.39 (Oct 20 close)

5,384.70 (Oct 20 close)

5,766.48 (Oct 20 close)

8,682.15 (Oct 20 close)

0.55% (for the week)

-0.83% (for the week)

0.97% (for the week)

-0.35% (for the week)

-2.51% (for the week)

-1.60% (for the week)

CHANGE: -0.86%

CHANGE: -2.11%

CHANGE: -4.29%

CHANGE: -8.42%

CHANGE: -15.18%

CHANGE: -14.77%

(year to Oct 20)

(year to Oct 20)

(year to Oct 20)

(year to Oct 20)

(year to Oct 20)

(year to Oct 20)

52-week high: 12,928.50

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1.074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,227.63

Andrew Nawrocki, WBJ market analyst

38,835.92 (October 20 close)

WIG20

2,222.09 (October 20 close)

Top 5 JAGO IGROUP REINHOLD INTERBUD EUIMPLANT

Closing 0.30 0.63 2.18 9.60 0.32

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

2,000

07.10

36,000

06.10

2,080 05.10

37,000

04.10

2,160

03.10

38,000

30.09

2,240

29.09

39,000

28.09

2,320

27.09

40,000

26.09

2,400

23.09

41,000

03.10

52-week low: 2,089.84

30.09

Change year to October 20: -17.51%

29.09

52-week low: 36,549.47

28.09

52-week high: 2,932.62

Change year to October 20: -16.88%

27.09

Change for the week: -2.21%

26.09

52-week high: 50,371.74

23.09

Change for the week: -1.95%

% change (week) 52-week high 50.00 1.51 34.04 0.71 24.57 8.75 20.00 19.7 18.52 0.77

52-week low 0.15 0.16 1.59 7.20 0.18

Top 5 Closing BRE 258.90 PZU 315.50 TAURONPE 5.38 CYFROPOLSAT 15.15 TPSA 17.00

% change (week) 3.56 1.45 0.56 0.00 -0.35

52-week high 357.90 398.60 6.92 17.69 19.19

52-week low 203.30 283.10 4.65 11.60 14.30

% change (week) -30.00 -19.39 -16.13 -14.12 -13.97

52-week low 0.06 200.00 1.40 2.66 1.17

Bottom 5 KGHM PEKAO PGNIG POLIMEXMS GTC

% change (week) -5.96 -5.75 -5.34 -4.71 -4.49

52-week high 142.50 197.20 4.65 4.36 25.19

52-week low 135.50 115.10 3.25 1.19 9.12

Bottom 5 Closing ADVADIS 0.07 MOL 200.00 INTERSPPL 1.56 PETROLINVEST 2.98 ASBIS 1.17

52-week high 0.36 386.00 6.00 13.00 4.25

Closing 134.00 134.30 3.72 1.62 11.70

Currency report

Other indices mWIG40

2,220.15 (October 20 close)

sWIG80

Indecision hits markets

8,843.27 (October 20 close)

Change for the week: -1.21%

52-week high: 2,987.72

Change for the week: -1.39%

Change year to October 20: -19.96%

52-week low: 2,086.64

Change year to October 20: -26.79%

on October 23. The WIG closed half a percent lower, while the WIG20 dropped 0.64 percent. Stocks got a lift on both Tuesday and Wednesday, with news that France and Germany had reached a deal to enlarge the bailout fund. Taken together, the WIG closed 0.36 percent higher. Closing strongly higher on both days were shares of Handlowy (5.4 percent) and Lotos (4.7 percent).

Thursday, October 20, saw steep declines, with banking and mining shares leading the falls. Reports that Germany’s government could not rule out the possibility of postponing the upcoming meeting succeeded in pushing markets lower. The WIG closed sharply lower, shedding 2.84 percent. Friday saw markets rebound, with the WIG up 3.14 percent. ●

Global stock markets continued their roller-coaster ride last week, rising and falling on the words of European policymakers. Early in the week, investors finally began to believe that a deal to bolster the €440 billion European Financial Stabilization Facility (EFSF) was within reach. But their joy was short-lived, as plenty of controversial details still need hammering out. Major stock indices throughout Europe and the US closed lower.

The WIG closed the week 0.72 percent lower, while the WIG20 shed 0.76 percent.

The week of October 17 began poorly. Comments by Germany’s finance minister, Wolfgang Schäuble, sent markets into the red on Monday when he announced that a definitive solution would not be reached at the EU summit due to be held

Major indices WIG

19

52-week high: 12,932.00 52-week low: 8,483.22

NewConnect

42.46 (October 20 close)

WIG-Banki

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

30.09

29.09

28.09

27.09

26.09

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

07.10

8,400

06.10

2,000

05.10

8,540 04.10

8,680

2,080 03.10

2,160

30.09

8,820

29.09

2,240

28.09

8,960

27.09

2,320

26.09

9,100

23.09

2,400

23.09

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

5,554.02 (October 20 close)

SOURCE: WSE

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

4,900

07.10

41.0

06.10

5,100 05.10

41.6

04.10

5,300

03.10

42.2

30.09

5,500

29.09

42.8

28.09

5,700

27.09

43.4

26.09

5,900

23.09

44.0

03.10

52-week low: 4,944.19

30.09

Change year to October 20: -18.35%

29.09

52-week low: 42.62

28.09

52-week high: 7,387.49

Change year to October 20: -33.07%

27.09

Change for the week: -2.30%

26.09

52-week high: 64.23

23.09

Change for the week: 1.05%

make a stronger move. Mixed macro data from the US economy makes it difficult to believe in the possibility a rebound. And as more and more investors become pessimistic, this reflects on the z∏oty.

The local currency was affected by two mixed external factors this past week. On one hand, investment banks encouraged foreign investors to buy the z∏oty as a regional “safe heaven” currency, but on the other, Moody’s ratings agency warned about the possibility of giving Poland a negative rating outlook (due to budget deficit problems that might arise from the eurozone debt crisis). The z∏oty ended the week at z∏.4.38 against the euro, z∏.3.15 against the US dollar and z∏.3.57 against the Swiss franc. ●

Markets have been awaiting the EU summit with bated breath, but it seems none of the crucial decisions will be made just yet. It is likely that government leaders will decide on banking recapitalization, which will force banks to look for capital on the market, but the key decision on Greek debt reduction has been postponed until no earlier than Wednesday.

Since Europe’s politicians cannot decide what to do, with uncertainty about the expansion of the EFSF still remaining, investors have become more nervous and increased risk aversion can be observed on the currency market.

The EUR/USD remained in the wide $1.3650-1.3850 range for most of the week, waiting for an impulse to

currency rates 4.1694

4.1405 20.10

21.10

4.0821 19.10

SOURCE: NBP

4.1394

3.9701

18.10

17.10

3

4.0448

4

14.10

0.1020 21.10

0.1012

0.1012

PLN-100JPY

5

20.10

19.10

0.1018 18.10

17.10

0.1006 14.10

3.5197

3.5893 21.10

0.09

0.1003

PLN-RUB

0.11

20.10

3.4820 19.10

3.5246 18.10

3.0

3.4528

3.4704

3.5

14.10

5.0482 21.10

4.9958 20.10

4.9372 19.10

5.0016 18.10

4.8577 17.10

14.10

4.9040

3.1969 21.10

3.1779

5

4

PLN-CHF

4.0

17.10

PLN-GBP

6

20.10

3.1347 19.10

3.1788 18.10

17.10

3.1107 14.10

4.3628

4.3960 21.10

3.0

3.0759

PLN-USD

3.5

20.10

4.3334 19.10

4.3499 18.10

17.10

4.2925 14.10

4

4.2716

PLN-EUR

5

20

THE LIST

www.wbj.pl

OCTOBER 24-30, 2011

Corporate Services

Translation Companies

Rank

Ranked by revenue from translations in 2010

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

1

Lionbridge Poland Sp. z o.o. ul. Jutrzenki 183, 02-231 Warsaw 22 865-9900/22 865-9930 info.pl@lionbridge.com www.lionbridge.com

2

LIDEX Centrum T∏umaczeƒ i Obs∏ugi Konferencji ul. Sejmikowa 8, 04-602 Warsaw 22 512-4700/22 512-4711 company@lidex.com.pl www.lidex.com.pl

Revenue Total from translations revenue (mln z∏.) (mln z∏.)

www.bookoflists.pl

Translations: Languages

Sworn / Conference/ Books / Interpreting translations Documents Films

Technical / Legal / Medical

Other specialized

Other services

Selected clients

✓ ✓ ✓

WND

Software testing; software engineering; multimedia services; DTP; management of multilingual websites; technical assistance; call center

WND

1st half of 2011 / 2010 / 2009 / 2008

18.7 39.0 33.0 30.0

28.0 58.6 46.0 43.0

All languages

-

✓

✓

Technical and translation services for conferences and events; conference equipment rental; software translation; Prime Minister’s Chancellery; website and multimedia Ministry of Economy; translation; adaptation of Siemens; advertisements; dubbing if Bank PKO; movies; DTP services; logistics Senate’s Chancellery management for large translation projects; EU project services

Number of Total translators / employees / Sworn Year translators founded

Top local executive / Title

165 -

420 1990

Jacek Stryczyƒski

1,400 135

61 1989

Stanis∏aw Buczyƒski

910 100

83 1997

Ewa Gnyp President

President

7.9 16.8 14.7 16.9

7.9 16.8 14.7 16.9

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Economics; law; banking; finance and accounting; standards; patents; certificates; automotive; IT; telecom; pharmaceutical; environmental protection

Skrivanek Sp. z o.o. ul. Podlaska 12, 20-304 Lublin 58 337-1336/58 323-7720 marketing@skrivanek.pl www.skrivanek.pl

5.8 9.7 11.4 15.0

6.7 11.5 13.2 17.5

All European and Asian languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Cultural adaptation; DTP; text PBG; Chancellery Finance; pharmaceutical; correction; printing; conference KRKAof Polska; the President of the chemistry; industrial equipment rental; software and Republic of Poland; HSBC Bank engineering; entertainment game localization; conferences Polska; LPP organization

4

GET IT Sp. z o.o. ul. Krasiƒskiego 2A, 01-601 Warsaw 22 327-6565/22 327-6575 getit@getit.pl www.getit.pl

WND 6.6 6.3 7.3

WND 6.7 6.4 7.5

All languages

✓ ✓

✓ ✓

✓

✓ ✓ ✓

Automotive; IT; construction; EU; marketing

Lexical systems for companies; terminology management systems; TM database; localization

European Commission

650 150

35 1995

Pawe∏ Stachnik

5

KONTEKST Andrzej Wolski Sp.j. ul. Nowogrodzka 56A, 00-695 Warsaw 22 548-0700/22 548-0701 kontekst@kontekst.pl www.kontekst.pl

2.9 6.0 4.9 5.8

2.9 6.0 4.9 5.8

English; German; Russian; French and other European languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Finance and banking; pharmaceutical; investments and real estate

WND

European Commission; Goldman Sachs; Ministry of Foreign Affairs; Santander; PKO BP

1,000 100

25 2000

Andrzej Wolski

6

Berlineo Centrum Obs∏ugi J´zykowej Anna Komorska - Pastwa ul. Dolna Wilda 88B/X , 61-501 Poznaƒ 61 623-2555/61 623-2578 info@berlineo.pl www.berlineo.pl

3.0 5.5 1.5 0.5

3.0 5.5 1.5 0.5

All European and most popular Asian languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Software localization

DTP; rental of equipment to carry out simultaneous translations

WND

400 30

405 2006

Anna KomorskaPastwa

6

INTERTEXT Biuro T∏umaczeƒ ul. Marsza∏kowska 2/7, 00-581 Warsaw 22 621-9718/22 625-2281 intertext@intertext.com.pl www.intertext.com.pl

WND 5.5 5.5 5.0

WND 5.7 5.7 5.2

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Pharmaceutical; medical technology; finance and banking; accounting; insurance; marketing; HR; IT

Conference handling; editorial; DTP; websites and software Siemens; Ernst & Young; GSK localization; copywriting; Sanofi-Aventis; glossaries and terminological Commercial; PricewaterhouseCoopers bases; printing; language consultations

600 200

20 1989

Beata Kander

8

Agencja MAart Sp. z o.o. ul. Kopernika 3, 00-367 Warsaw 22 480-8800/22 330-5207 maart@maart.pl www.maart.com

2.9 4.6 4.6 5.4

3.0 4.7 4.7 5.5

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Chemistry; banking; pharmaceutical; finance; IT; aviation; EU

Localization and others translation related projects including terminology management, file formatting and DTP services

EU Parliament; European Commission; CdT; PKO BP

900 200

36 1991

Monika Popio∏ek

9

Lacrosse Language Consultancy Sp. z o.o., Sp.k. ul. Krucza 16/22, 00-526 Warsaw 22 581-3860/22 581-3867 info@lacrosse.pl www.lacrosse.pl

1.5 3.5 2.8 3.1

1.7 3.9 3.3 3.7

English; German; French and others on demand

✓ ✓

✓ ✓

-

✓ -

Finance and banking; capital Proofreading by native markets; investor relations; speakers; specialized language real estate; insurance; training telecom

WND

120 70

20 1997

Wawrzyniec Fahrenholz

BTInfo Biuro T∏umaczeƒ Informatycznych Przy∏uccy Sp.j. ul. Pu∏awska 405A, 02-801 Warsaw 10 801-011-652/22 544-0961 btinfo@btinfo.pl www.btinfo.pl

1.5 3.0 2.8 3.2

1.5 3.0 2.8 3.2

WND

✓ ✓

✓ ✓

✓ ✓

✓ ✓ -

Telecom; finance

WND

IBM; Hewlett-Packard; TP; Dom Maklerski BZ WBK; Oracle

150 30

12 1995

Krzysztof Przy∏ucki

WND 2.7 2.8 2.8

WND 2.7 2.8 2.8

All European languages; Chinese; Japanese; Korean; Kazakh; Georgian; Azeri; Uzbek; Arabic; Hebrew

✓ ✓

✓ ✓

-

✓ ✓ ✓

WND

DTP

WND

350 20

305 1998

Pawe∏ Pieczyƒski

1.8 2.6 2.0 2.0

1.8 2.6 2.0 2.0

All languages

✓ ✓

✓ ✓ ✓

IT; energy; banking; insurance; marketing; aviation; telecom; financial reports; tender documents and specifications; standards; certificates; legislation; manuals; website services

Secretarial services

Polimex Mostostal; Hitachi Power Europe; Foster Wheeler Energia Polska; Elektrownia Pó∏noc; Mitsubishi Heavy Industries

135 15

153 2001

Areta Kempiƒska; Joanna Woêniakowska

0.7 2.4 1.3 1.4

0.7 2.4 1.3 1.4

All languages

Publishing project management; DTP and graphic design; terminological Training and CAT system selling bases; localization; audio description; voiceover by the teacher

WND

9,000 700

10 2006

Adam Iglewski; Rados∏aw Pilarski

AGIT Centrum T∏umaczeƒ ul. 3-go Maja 16/ 7, 20-078 Lublin 14 81 532-7777/81 470-9599 agit@tlumacz.tv www.agit.tlumacz.tv

1.3 2.0 2.0 1.2

1.3 2.0 2.0 1.2

Europejskie Centrum T∏umaczeƒ Sp. z o.o.

Skwer Kardyna∏a Wyszyƒskiego 5, 01- 015 Warsaw 14 22 460-4930/22 460-0062 info@ect.waw.pl www.ect.waw.pl

0.8 2.0 2.3 2.3

1.2 2.5 2.5 2.8

3

Apolonica ul. Jaszowiecka 8/25, 02-934 Warsaw 11 22 885-0890/22 885-0889 apolonica@apolonica.pl www.apolonica.pl Bireta Professional Translations Kempiƒska & Woêniakowska Sp.c. ul. Augustówka 36, 02-981 Warsaw 12 22 587-3307/22 587-3308 bireta@bireta.pl www.bireta.pl

13

mLingua Sp. z o.o.

Stary Rynek 100, 61-773 Poznaƒ 61 858-3630/61 624-3293 info@mlingua.pl www.mlingua.pl

✓ ✓

✓ ✓

President

President

Director

Owner

General Director

President

Co-owner

Co-owner

Owner

WND

✓ -

✓

✓ ✓

✓ ✓ ✓

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

WND

Rental and maintenance of equipment for simultaneous translation

GUS; Ministry of Health; PAP; Marshall’s Office of Wielkopolskie Voivodship; CBOS

500 80

WND 1998

Agnieszka Rydz

WND

WND WND

WND WND

WND WND

WND WND WND

WND

WND

WND

WND WND

10 2001

Przemys∏aw Su∏kowski

Board Members

Owner

President

THE LIST

OCTOBER 24-30, 2011

www.wbj.pl

21

Rank

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

Revenue from translations (mln z∏.)

Total revenue (mln z∏.)

Languages

Sworn / Conference/ Interpreting translations Documents

Books / Films

Technical / Legal / Medical

Other specialization

Other services

EU; biotechnology; IT; pharmaceutical; chemistry; Technical and language agriculture; environmental conference support; Helpdesk UPS; TVN; L’Oreal; Samsung; protection; economics; line; Emergency line - orders Shell finance; banking; accounting; 24/7; DTP; organization of insurance; marketing; training; publishing services advertising

0.9 1.9 2.0 2.4

0.9 1.9 2.0 2.4

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

LN Sp.c./ LINGUA NOVA ul. Wspólna 41, 00-519 Warsaw 17 22 584-1035/22 584-1035 linguanova@linguanova.com.pl www.linguanova.com.pl

1.4 1.8 1.2 1.4

WND 7.0 6.0 7.0

WND

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Finance; accounting; EU; energy; IT; insurance; real estate; pharmaceutical

Language training and trips

1.0 1.8 1.2 0.6

5.5 14.5 10.3 50.0

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Marketing

100 Agencja T∏umaczeƒ Joanna Ma∏gorzata Baraniecka ul. Targowa 15/97, 03-727 Warsaw 19 22 670-4222/22 670-4489 poczta@100at.pl www.tlumaczenie.ws

0.9 1.2 1.5 1.4

0.9 1.2 1.5 1.4

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

WND

Biuro T∏umaczeƒ FATIX Mateusz Fatek ul. Sienkiewicza 42, 25-507 Kielce 20 801-011-389/41 241-2478 info@fatix.pl www.fatix.pl

0.8 0.9 0.7 0.5

0.8 0.9 0.7 0.5

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

WND

KMK Biuro T∏umaczeƒ ul. Powstaƒców Âlàskich 1/45, 01-381 Warsaw 20 22 633-8483/22 669-3968 biuro@tlumaczenia-kmk.pl www.tlumaczenia-kmk.pl

0.5 0.9 1.2 1.4

0.5 0.9 1.2 1.4

Most European languages

✓ -

✓

-

✓ ✓ ✓

WND

DTP; texts verification; localization

Verba-Text Sp. z o.o.

Al. Niepodleg∏oÊci 227/233, 02-087 Warsaw 20 22 621-1345/22 433-5005 biuro@verba-text.pl www.verba-text.pl

0.5 0.9 0.8 0.5

WND WND WND WND

WND

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

WND

L2 - Language Consulting Sp. z o.o. ul. Marsza∏kowska 8/17, 00-590 Warsaw 23 22 622-4772/22 622-3051 info@language.com.pl www.language.com.pl

0.3 0.6 0.7 0.9

3.0 6.0 6.0 7.8

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

10 Agencja Tekst Biuro T∏umaczeƒ ul. Stawki 3/13, 00-193 Warsaw 24 22 831-4701/22 635-9388 stawki@pro.onet.pl www.stawki.pl

0.2 0.5 0.5 0.5

0.2 0.5 0.5 0.5

English; German; French; Russian; Dutch; Ukrainian; Spanish; Italian

✓ ✓

✓ ✓

✓ -

0.2 0.5 WND WND

0.4 1.0 WND WND

English; German; French; Russian; Polish; Italian; Dutch; Spanish; Czech; Slovak; Hindi; Japanese; Chinese; Norwegian; Swedish

✓ ✓

✓ ✓

Eurobusiness-Haller ul. Obroki 133, 40-833 Katowice 26 32 355-3801/32 355-3800 euro@haller.pl www.haller.pl

0.2 0.3 0.2 0.3

0.4 1.0 0.9 1.0

English; German; French; Russian; Italian; Spanish; Czech; Slovak

✓ ✓

WORDLINK US¸UGI J¢ZYKOWE Sp.c. ul. ¸ucka 18/135, 00-845 Warsaw 27 728-466-042/22 627-0580 info@wordink.pl www.wordlink.pl

0.1 0.2 -

0.1 0.2 -

All European languages

Lang LTC Sp. z o.o. ul. S´dziowska 5, 02-081 Warsaw 28 22 825-1648/22 825-1648 lang@lang.com.pl www.lang.com.pl

WND 0.1 0.03 0.1

4.3 6.7 7.3 7.8

BALAJCZA Biuro T∏umaczeƒ Specjalistycznych Controlling Consulting Sp. z o.o.

29 ul. Kotylion 1, 02-860 Warsaw 22 643-4794/22 643-4793 balajcza@balajcza.p www.balajcza.p

0.2 0.4 0.1 0.2

WND WND WND WND

pwn.pl Sp. z o.o. ul. Grabiszyƒska 281, 53-234 Wroc∏aw 61 873-6259/61 873-6252 tc@pwn.pl www.translatica.pl

Multiciti ITAIO, Osoba fizyczna prowadzàca dzia∏alnoÊç ul. Grzegórzecka 69, 31-559 Kraków 24 12 378-9591/12 378-9672 office@itaio.pl www.itaio.pl

MIW Maciej Wróblewski ul. Brata Alberta 2B, 05-075 Warsaw NR 509-480-733 miw@tlumaczenia-miw.pl www.tlumaczenia-miw.pl

Number of Total translators / employees / Sworn Year translators founded

Top local executive / Title

1st half of 2011 / 2010 / 2009 / 2008

Quendi A. Hildebrandt ul. Bonifraterska 10C, 00-213 Warsaw 16 22 530-6480 biuro@quendi.pl www.quendi.pl

17

Selected clients

9 4

14 2004

Andrzej Hildebrandt

Sener; ERBE Polska; Jeronimo Martins Dystrybucja; BRE Leasing; Liberty Seguros Compania de Seguros y Reaseguros

140 72

8 1991

Bartosz Szyke; Gra˝yna Szyke

Websites localization

WND

6 -

350 1999

Marczello Georgiew

Graphic processing

PWPW; PKP PLK; the District Court for Warsaw Praga North; UOKiK

10 5

14 1986

W∏adys∏aw Kurowski

Conference oraganization; DTP; OST Gromada; ASTALDI; GATX language training; software Rail Poland; Veolia UdÂ; localization; studio recording Lafarge

240 140

248 2006

Mateusz Fatek

Institute of Fundamental Technological Research; Siemens; Danone; Peek & Cloppenburg; Nobipharm

219 32

9 1997

El˝bieta Plàskowska

Support for conferences, proofreading and editing of texts; desktop publishing

WND

200 45

4 1997

Tomasz Krawczyƒski

Marketing; IT; economics; finance; banking; tourism; patents; construction; chemistry

Business language training

Raiffeisen Capital Management; Embassy of the Republic of Austria; Empik; Triada; NG2

60 20

20 1999

Maria CzajaDysiewicz

✓ ✓ ✓

WND

WND

WND

20 12

WND 1994

Krzysztof K´dzielski

✓ ✓

✓ ✓ ✓

WND

WND

WND

120 30

130 2005

Micha∏ Poliƒski

✓ ✓

✓ -

✓ ✓ ✓

WND

Technical conference support

European Commission; GIG; IMBiGS; ITR; CIOP

55 30

61 1990

Edyta Wo∏czyk

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Audio description; subtitles for Karimpol; Nestle Waters deaf; translation using CAT Polska; Polish Properties; Real estate; IT; automotive thetools; language support for Dàbrowski Finance; Hoogwegt companies Poland

50 10

62 2010

Aleksandra K´dzierska

English; German; French; Russian; Italian; Spanish

✓ ✓

✓ ✓

-

✓ ✓ ✓

Technical; construction; IT

66 14

298 1991

Katarzyna Kieszkowska

0.1 0.1 WND WND

All languages

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

Centralny Dom Maklerski PEKAO; LUX MED; Accero Taxand; Dekra Industrial; Polsat

350 150

4 1997

Timea Balajcza

WND WND WND WND

WND

✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

MNiSW; District Court Pruszków; Afa Laval Poska; Honda Poland; Augustów City Hall

20 20

WND 2009

Maciej Wróblewski

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was done in September 2011. Number of employees and ownership structure are as of August 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Language training for companies; foreign trips; Cambridge ESOL exams

Finance; banking; technology; Organization of conferences; pharmaceutical; IT; correction and verification of marketing; EU texts

WND

WND

WND

Owner

Co-owners

President

Proxy

Owner

Owner

President

President

Owner

WND

Director

Director

Owner

Vice-President

WND

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.

22

LIFESTYLE

www.wbj.pl

OCTOBER 24-30, 2011

Concert

Concert

Jazz-hip hop fusion

Thursdays for the classics Thursday Music Evenings Every Thursday from 6 pm Warsaw Philharmonic ul. Jasna 5 Warsaw

COURTESY OF THE WARSAW PHILHARMONIC

Each week Warsaw Philharmonic will host concerts per-

DAFÔ perform Mozart’s “String Quartet in B flat Major,” among other compositions. Tickets for the concerts are priced from z∏.20-25. ● For more information log on to filharmonia.pl

formed by acclaimed orchestras and string quartets. Classical music lovers will be able to see performances of different classical compositions every Thursday, with October 27 set to see Polish string quartet

The Warsaw Philharmonic

COURTESY OF US3

Festival

Us3 is bringing its eclectic jazz and hip hop sounds to Warsaw, Bydgoszcz, Kraków and Wroc∏aw Founded in London in 1991, Us3 is an acid jazz/hip hop collaboration led by producer Geoff Wilkinson. This concert will see them promoting

18th International Meeting of Live Arts CROSSROADS 2011 Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 Warsaw

their latest album, “Lie, Cheat & Steal,” with New York-based Puerto Rican rapper Oveous Maximus, highly regarded UK rapper Akala, saxophonist Ed Jones, trumpeter Bryan Corbett and a dazzling array of London’s finest keyboard players and DJs, completing the lineup.

Featuring a mix of Latino, funk and afrobeat sounds, Us3 will be sure to provide an eclectic mix of musical influences during their Polish tour, which also includes visits to Bydgoszcz, Kraków and Wroc∏aw. ● For more information log on to stodola.pl

This year’s edition of the CROSSROADS festival, the 18th, will see highly acclaimed and innovative artists from both Poland and Italy performing shows involving visual art, theater and contemporary dance at this performance art festival.

The performances will revolve around two central themes: the psychic and mental processes taking place in society, and the perception of the image of the female body.

Among the artists taking part are Compagnia Virgilio Sieni, led by one of the leading

COURTESY OF CSW

Us3 October 24 Stodo∏a ul. Batorego 10 Warsaw

Cross-cultural collaboration

Tristi Tropici, choreographed by Virgilio Sieni es will be accompanied by numerous screenings, meetings with the artists and workshops.

figures in Italian contemporary dance, Vigilio Sieni, choreographer Paola Bianchi, Polish dancer Renata Piotrowska, and “mufmi” a dance company from Warsaw. The performanc-

● For more information log on to csw.art.pl

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

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

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

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

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

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl

Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Le Guern Gallery ul. Widok 8, www.leguern.pl

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

Museum of Independence Al. SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl

Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

LAST WORD

OCTOBER 24-30, 2011

www.wbj.pl

23

Tech Eye

And so this article was typed as fast as physically possible for a onehanded man whose nether region is being slow-roasted and shredded at irregular intervals by a furry blob of malevolence. If it seems a bit slapdash we’re sorry. But only a little bit.

The first of this week’s gadgets is LG’s just-announced DoublePlay

COURTESY OF LG

This week’s column was written at a friend’s house, where a psychotic cat took up residence on Techeye’s lap.

We didn’t know it had mental health issues until after the creature had curled up into a cunningly adorable ball, its paws strategically deployed in sensitive regions.

Any attempt to withdraw hand from fur was met with a terrible unsheathing of claws (which, by the way, sounded just like Wolverine’s in the comics – snickt!) and one feline eye would languidly open and stare upward for a moment as if to say, “Resistance is futile.” Almost too late did we understand that the coerced petting was a diversion. Its true intent?

Melting Techeye’s pelvis bone with its fiendishly hot fur, so we’d never be able to escape and thus would be forced to continue petting it. For ever and ever.

smartphone (www.lg.com), a quirky handset with a 3.5-inch main display and a slide-out QWERTY keyboard bisected by a second, 2-inch touch screen. It’s an Android OS (Gingerbread) phone with a 5-megapixel rear camera and a 1 GHz Qual-

comm Snapdragon processor. But that’s pretty much beside the point.

This is, at heart, a phone designed for the attention spanimpaired. LG uses slightly different rhetoric, of course, calling it “the ultimate multitasking tool.” But the firm tacitly acknowledged its target demographic by making the DoublePlay the key piece of equipment in the fifth annual US National Texting Championship, taking place this Wednesday. Presumably you’ve heard of this competition, where delinquents with ADHD showcase meaningful communication skills (“liek OMG, i totaly h8 her. Shes sucha trifilin skeeza!”) before an audience of equally fidgety teens.

But we digress. Suffice it to say that the DoublePlay is a textingfriendly handset with the potential for modest greatness, but we would not recommend it for owners (or slaves) of diabolical quadrupeds – you need both hands to make proper use of it. LG is releasing it only through T-Mobile and there are rumors of a European release, but all that’s confirmed for now is a November 2 debut in the US. Price: $150 (on a two-year contract).

Now for something a little more

COURTESY OF MARCHI MOBILE

Evil on the lap, mobility on the mind

upscale – the Luxury Camper Van from Marchi Mobile (www.marchimobile.com). What you see here is a rendering, yes, but Techeye can confirm this beast exists in the wild. The Luxury Camper Van has just recently gone on sale and, while pricing details have proven frustrating to locate, we figure it’s worth more than, say, the grand prize in a texting championship.

What’s so special? It looks badass, for one thing, like the mutant offspring of a cyclops which drunkenly wandered into a Texas trailer park one night. It’s got a “Sky Lounge” which opens up top and

its side can extend, increasing the interior space by 80 percent.

There’s also a couch that transforms into a bar lounge, lounge chairs with massaging functions and a multimedia system with more LCD panels than a Japanese toilet. And that’s a lot.

We could probably blather on about the Luxury Camper Van’s 510HP engine, its funky paint job and other salient features, but you know what we love most about it?

All the whirring, extending and revolving parts are enough to make a cat more nervous than a room full of rocking chairs. ●

Ever h8ted a trifilin skeeza? Let us know: techeye.wbj@gmail.com