WBJ #26-27 2013

‘No, Snowden’

The next global sport?

Poland was one of the many countries to which NSA leaker Edward Snowden applied for asylum, and was rebuffed

Ron “Jaws” Jaworski talks to WBJ about the future of American football in Poland and around the world

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WWW.WBJ.PL

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LOKALE IMMOBILIA REAL ESTATE

COURTESY OF JASI¡SKI KRUSZEWSKI ARCHITEKCI

VOLUME 19, NUMBER 26-27 • JULY 8-21, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

Healing the world Poland is establishing itself as one of the most popular destinations for medical tourism in Europe. WBJ looks at the reasons in a special 4-page 11-14 report

• Echo’s new tower • Office deals in Q2 • Dominikaƒska sold 15-17

Investing in Poland

Warsaw Business Journal Group launches its Investing in Poland project, including an all-new investment guide, conference, and awards 14

SHUTTERSTOCK

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .10 Medical Tourism . . . . . . . . . . .11-14 Lokale Immobilia . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . . . . .18 Markets . . . . . . . . . . . . . . . . . . . . .19 Sports . . . . . . . . . . . . . . . . . . . .20-21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Popular politics

Happy ending?

As pressure on the ruling party heats up and the opposition gains ground, both sides are becoming more populist in their promises 3

The Monetary Policy Council has cut interest rates once more, but made clear that the easing cycle has come to an end

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NEWS

www.wbj.pl

Poland to extend SEZs’ lifetime Deputy PM and Economy Minister Janusz Piechociƒski said that the government has decided to extend the lifespan of special economic zones (SEZs) until 2025. Polish SEZs were originally scheduled to function until 2020. Mr Piechociƒski said that ministries are now working on adopting changes to regulations on the activities of investors in the zones. ●

49.3 was Poland’s June PMI reading, according to HSBC and Markit. Anything below 50.0 indicates contraction, but the June figure was up by 1.3 points on the previous month.

Enthusiasts reenacting the battle of Grunwald The battle of Grunwald on July 15, 1410 is arguably the most famous battle Polish forces ever fought. It is an extremely important historical event for Poles themselves, who celebrate the anniversary with a reenactment each year.

The number of soldiers that fought at the field in northern Poland was one of largest of the Middle Ages. On the Teutonic side there were between 11,000 and 27,000 soldiers, while the combined force of the Polish and Lithuanian side was 16,00039,000 men strong. In comparison, the number of soldiers that took part in the battle of Poitiers (1356) was 17,000 combined.

The battle itself was a decisive point in the conflict between the Polish-Lithuanian union and the Teutonic

Knights, which had been present on Polish territory since 1230. The order came to Poland originally to fight pagan Prussian clans, but later shifted its attention to the pagan Grand Duchy of Lithuania. After Poland and Lithuania formed an alliance, Poland became involved, and as the Teutonic Knights became more aggressive and began to take over more and more land, the indigenous people incited local uprisings, which quickly spread into a mass conflict.

The victory of the prevailing Polish-Lithuanian army was resounding. About 8,000 Teutonic soldiers were killed, including the order’s Grand Master Ulrich von Jungingen.

An additional 14,000 were taken captive.

Despite that, the Polish-

Lithuanian union didn’t manage to expel the remaining knights outright. The siege of Malbork, the order’s headquarters, which followed the battle, was unsuccessful. Territorial disputes continued until the peace of Me∏no was concluded in 1422.

Nevertheless, the battle marked a turning point for both political entities. The Teutonic Knights never regained their power and influence, while reparations led to internal conflicts and economic downturn.

The Polish-Lithuanian union, however, became the dominant power in the region.

This paved the way for the Polish-Lithuanian Commonwealth, which at its height became the largest country in Europe.

2.9% is by how much retail trade rose in Poland in May year-on-year according to Eurostat. In April, it grew by 2.7% y/y.

Quote of the Week “The worst is over for Poland’s economy.”

Marek Belka, president of the National Bank of Poland and chairman of the Monetary Policy Council, after announcing that the council had ended its monetary easing cycle with an interest rate cut in July.

Figures in focus Hunger prices Prices of food in selected EU member states (100 = EU27 average) 150

143 124

*Highest in EU **Lowest in EU

120

120

106 96

93

90

84

81 68

61

60

Jacek Ciesnowski 30

Pension funds in focus Poland’s government has announced it is currently reviewing three possible proposals for “reforming” the privately run open pension funds (OFEs). Log on to WBJ.pl to read what leading Polish economists think about the issue.

Location: Web:

The 50+ Show is Britain’s biggest event targeted at active people in their 50s and above. The 4th Health Tourism Show will bring together some 11,000 people involved in health care, medical services and health resorts from around the world.

London, Olympia, Grand Hall 50plusshow.com

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FRANCE NATIONAL DAY (BASTILLE DAY)

Event:

The celebration of France’s national holiday in Warsaw will feature “French town” on ul.

Francuska with a French song festival and a culinary competition, as well as a “July 14 Ball” on ul. Foksal, which will bring together some 1,500 people involved in Polish-French business, politics and culture.

Warsaw ccifp.pl

Location: Web:

*

Apart ............................................................3 Mergermarket ............................................3 Asseco Poland ............................................5 MGPA ........................................................15 AstraZeneca ........................................12, 14 Monnari......................................................15 Atrium European Real Estate ..................15

Noble Securities SA ..................................19 Nordea Bank Polska ................................15

Bank Gospodarstwa Krajowego ................7 Onyx Consulting ..........................................5 Bank Pekao ..............................................14 Otto Family ................................................15 Boeing..........................................................5 PGNiG ....................................................6, 19 Bucharest Stock Exchange ........................2 Pittsburgh Glass Works ............................14

July/August Event:

d*

Company index

Azora Europe ............................................17

11-13 THE 50+ SHOW AND HEALTH TOURISM SHOW

Po lan

Source: Eurostat

Aviva Investors ..........................................17

Calendar

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Hu ng ary

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On WBJ.pl

en

Ludwik Sobolewski, the former chief executive of the Warsaw Stock Exchange, has been appointed CEO of the Bucharest Stock Exchange, the Romanian bourse announced in a statement. The previous head of the BSE was dismissed in March. Mr Sobolewski lost his job as WSE president earlier this year following a controversy involving the financing of a movie in which his girlfriend had landed a role.

455 is the number of Polish businesses that went bankrupt between January 1 and June 28, 2013. The figure was 7% higher than a year ago.

Au st

Pole to run Romanian bourse

25 basis points is by how much the Monetary Policy Council cut Poland’s benchmark interest rate in July, bringing it down to 2.50%, a new record low.

ed

The European Parliament has voted in favor of an intervention in the EU Emission Trading Scheme (ETS). The move, which was proposed by the European Commission, would mean suspending the auctions of 900 million CO2 emission permits in the years 2013-2015 in order to raise their price.

Poland’s energy sector is largely dependent on coal, and opposes the intervention.

The Battle of Grunwald

*

EP supports carbon dioxide backloading

Numbers in the News

Sw

Between January and April 2013, roughly 121,000 children were born in Poland, while 142,000 people died, according to data from statistics office GUS. In the same period last year, the number of births was higher by almost 6,000 and the number of deaths lower by 8,000. The current fertility rate in the country places Poland in 212th place out of 224 countries worldwide, according to the CIA Factbook.

IN THE SPOTLIGHT

De nm ark

Poland’s population shrinking fast

JULY 8-21, 2013

SHUTTERSTOCK

2

Buro Happold Polska ................................15

AUGUST 16-19 PRIDE OF POLAND 2013 AND ARABIAN HORSE DAYS Event:

Each summer Janów Podlaski Stud farm, established in 1817, hosts Arabian Horse Days. This year’s event will feature several horse shows, parades and two auctions: the Pride of Poland auction and Summer Arabian Horse Auction.

Location:

Janów Podlaski, Poland

Web:

www.janow.arabians.pl

24-25 AIR SHOW 2013

BZ WBK ......................................................7 CBRE..............................................14, 16, 17

PKP ..............................................................8 PwC........................................................8, 14

Citi................................................................7 R-Style Softlab ............................................5 Cushman & Wakefield ..............................15 Ryanair ........................................................5 Deutsche EuroShop AG ............................15 Servier..................................................12, 14 Echo Investment..................................15, 17 SMG/KRC ....................................................3 Estudio Lamela ........................................14 EuroMedic Poland ..............................12, 14 Euromedica ..............................................12

Société Générale ........................................3 Sony ..........................................................23

Gazprom ......................................................6 SwedeCenter ............................................15 Ghelamco ............................................16, 17 T-Mobile ....................................................22 Grupa Azoty ................................................6 TNS Polska ............................................3, 11 HSBC ......................................................2, 7 TomTom ....................................................23 Icon Real Estate ........................................16 ING Financial Markets ................................7 Itella ..........................................................14

Trawnik Producent ....................................21 Tristan Capital Partners............................17

Jasiƒski Kruszewski Architekci ................16 Union Investment ......................................16 Jones Lang LaSalle ............................16, 17 Voestalpine AG ..........................................10

The international air show will be held in Radom for the 13th time. It will celebrate 95 years of Polish aviation.

Koenigsegg..................................................3 Warsaw Chopin Airport ..............................5 Kury∏owicz & Associates ..........................15 Warsaw Stock Exchange ........................2, 8

Location:

Radom, Poland

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

Web:

airshow.sp.mil.pl

Event:

LeasePlan Fleet Management Polska ......6 London & Cambridge Properties ............16

Willa Krasicki II ........................................16 Wizz Air ........................................................5

Markit ......................................................2, 7 WSE............................................................15 Marriott......................................................15 X-Trade Brokers ....................................3, 19 MasterLease................................................6 ZETO ............................................................5

NEWS

JULY 8-21, 2013

www.wbj.pl

Economic policy

Poland’s two biggest parties had their party conventions in late June. What are their economic programs?

With Poland’s largest opposition grouping Law and Justice (PiS) currently ahead of the ruling Civic Platform (PO) in the opinion polls, both parties held their conventions on June 29 in Silesia where they laid out their vision for the country’s future.

Although the next parliamentary elections are scheduled for 2015, PO’s recent slump in popularity has prompted speculation as to whether the party’s leader Prime Minister Donald Tusk will be forced to call snap elections. Currently, a mere 23 percent of Poles approve of Mr Tusk’s work as PM, while 71 percent believe he is doing a bad job, according to a June TNS Polska survey.

Also, the prime minister is being challenged for his party’s leadership position by former Justice Minister Jaros∏aw Gowin, who accuses him of abandoning the party’s original center-right, pro-business ideals in order to be a “social democrat.” In a troubling development for the PM a July SMG/KRC survey revealed 36 percent of Poles believe Mr Gowin would be a better leader for the rulling party than Donald Tusk while 28 percent believe the PM to be the best possible leader for PO. There has been speculation that Mr Gowin could exit PO, taking

along with him several MPs, causing the ruling coalition to lose its parliamentary majority.

Apart from criticizing Mr Tusk for focusing all his efforts on “keeping control of the party” and for squandering the party’s support, Mr Gowin said that the PM is embarking on “counter-reforms,” pointing to PM Tusk’s recent suggestion the government could move pension assets currently held by private pension funds (OFEs) to the state-controlled Social Insurance Institution (ZUS).

‘Re-Polonization’ needed At the PiS convention, Mr Kaczyƒski lambasted the current government for what he sees as its poor handling of the economy. Poland’s economy grew by an unimpressive 0.5 percent in the first quarter of 2013, according to statistics office GUS. “It is not just the crisis ... that is the cause of the current situation, but terrible governing,” said Mr Kaczyƒski.

The PiS leader promised to “defend Polish ownership in strategic sectors of the economy,” and “re-Polonize banks in Poland within rational economic boundaries.” Currently, an estimated 72 percent of the banking system in Poland is under foreign ownership.

Mr Kaczyƒski also talked of rebuilding Polish industry, “which has been limited in a manner that was completely unjustified.” He also called for the minimum wage to be raised and for limits to the use of temporary contracts, which are

often used by firms to avoid taxes but which offer workers scant social protection.

Regarding private pension funds (OFEs), whose activities Mr Tusk’s government seems determined to limit, Mr Kaczyƒski said they are “lionlike firms in which one side, the private owners, have guaranteed benefits while the second party, the payees of compulsory pension premiums, take the risk but have unspecified rights.”

Mr Kaczyƒski thinks Poles should be able to choose whether they want to stay in OFEs or have their pension funds transferred to ZUS.

COURTESY OF THE PRIME MINISTER’S CHANCELLERY

Poles ‘in no mood’ for austerity

PM Donald Tusk said his party’s economic program can be summed up in one word: “jobs”

Jobs for all? ble, unemployment is quite high and people are not really spending money,” he added.

Mr Janecki voiced concern at the possible economic effect of PiS’s promise to impose a special tax on banks and large supermarkets. He added that Mr Tusk’s government was currently raising taxes “but in a way that is not so visible to the ordinary Joe, such as by freezing the rise of non-taxable income or eliminating the possibility of VAT write-offs on building materials by 2014.”

Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers, meanwhile, agreed the government was treading carefully not to give the impression it was raising taxes.

“They want to avoid increasing taxes at all costs.

When the PM laid out his plans for reforms six years ago, he thought the economy

Meanwhile, at the ruling party’s convention, Prime Minister Donald Tusk was short on specifics, saying his party’s economic program could be summed up in one word: “jobs.”

“Jobs for all Poles who want one,” said Mr Tusk. He added that his government also planned to effectively use the EU funds Poland had been allocated for the years 20142020.

Reforms anyone?

WBJ asked Jaros∏aw Janecki, chief economist at Société Générale, for his take on both parties’ economic programs.

“Part of the population is still waiting for reforms but the government is currently taking very small steps in this regard because the rest of the population opposes them,” he said.

“The labor market is unsta-

would be in good shape, but it is not. The public is in no mood for austerity today, thus his current rhetoric,” said Mr Kwiecieƒ.

“However, I do not expect the government to increase spending strongly in the runup to the parliamentary elections. What they will do rather is try to create a lot of buzz around spending measures that will actually be limited in scope,” Mr Kwiecieƒ said.

Regarding PiS’s economic program, Mr Kwiecieƒ said in his opinion Mr Kaczyƒski has an “indifferent” attitude towards economic issues. “He does not really care about economics but will do whatever his advisers tell him is a good idea at any given time, provided it does not clash with his core beliefs.”

Remi Adekoya

International

Edward Snowden denied asylum in Poland

Edward Snowden, an American former National Security Agency (NSA) contractor who leaked details of a secret US and British surveillance programs, has asked a number of countries, including Poland, for asylum.

“We have received an asylum application which does not fulfill the formal requirements. But even if it did, I would not give a positive recommendation,” Polish Foreign Minister Rados∏aw Sikorski wrote on Twitter. When asked by another Twitter user why he wouldn’t give a positive recommendation, Mr Sikorski replied, “Because the US and Poland are allies.”

Despite that, Mr Sikorski

said that “Poland will demand explanation from the US regarding the activity towards Poland and the EU.” When asked about the matter by reporters, Minister of Internal Affairs Bart∏omiej Sienkiewicz said, “If our secret service obtains conclusive evidence that Polish citizens or the Polish government have been under surveillance, it will surely have political consequences.”

Mr Snowden’s revelations that European institutions were under surveillance have strained ongoing negotiations between the US and the EU on a comprehensive free trade agreement.

“There can be no negotiations or transactions in any area until we have obtained guarantees,” that neither France nor the European Union were being spied upon, French President Francois Hollande said. European Jus-

tice Commissioner Viviane Reding added that the EU cannot negotiate “if there is any doubt that our partners are bugging the offices of European negotiators.”

Spy game As of press time, the US had not yet made official comment on the matter. Only US Secretary of State John Kerry ventured a comment: “I will say that every country in the world that is engaged in international affairs and national security undertakes lots of activities to protect its national security and all kinds of information contributes to that. All I know is that it is not unusual for lots of nations.”

Mr Snowden remained in legal limbo in the Moscow airport as WBJ went to press.

Most of his requests for asylum had been denied, with only Bolivia, China, Cuba, Ecuador, Iceland and

Jan Kulczyk still the richest Pole In the latest edition of the list of richest Poles complied by weekly Wprost, Jan Kulczyk was again ranked number one. His personal wealth has grown in the past year from z∏.9.7 billion to z∏.12.5 billion. This year, Mr Kulczyk was ranked together with his son, Sebastian Kulczyk, who will take over the management of the family assets within the next year. Zygmunt Solorz-˚ak is Poland's second-richest man, with assets worth z∏.10.5 billion. Third in line is Micha∏ So∏owow, with a fortune of z∏.7.45 billion.

M&A value down in Poland The value of mergers and acquisitions in the Polish market in the first half of 2013 amounted to just €1.7 billion, according to estimates from Mergermarket. The value was 50 percent lower than in H1 2012, although the actual number of deals decreased by just five.

Norwegian drives into crowd during auto show A total of 17 spectators were injured when a Norwegian man driving a Koenigsegg supercar lost control of his vehicle and crashed into people watching the Gran Turismo Polonia car show in Poznaƒ. As of press time, most of the injured fans had been released from hospital, with the condition of the remaining few improving. Polish prosecutors have charged the man with reckless driving, which carries a maximum prison sentence of five years.

Apart buys watchmaker Albert Riele

AFP/EAST NEWS

Still, officials say they are deeply concerned over revelations that the US may have spied on Poland

3

Edward Snowden has stirred controversy worldwide with the documents he leaked Nicaragua not yet responding. Mr Snowden’s request for asylum in Russia was withdrawn following President Vladimir Putin’s statements that he would allow Mr Snowden to remain in Russia as long as he stopped “his work aimed at harming our American partners, as

strange as that sounds coming from my lips.”

Mr Putin however added that he wouldn’t hand Mr Snowden over to the US, because that would be against Russian policy and law. Russia does not have an extradition agreement with the US. Jacek Ciesnowski

Polish jewelery chain Apart has acquired Swiss watch brand Albert Riele.

The firm, which first began producing watches in 1881, suspended production several years ago. The Polish company will relaunch the line this fall, Puls Biznesu reported. The value of the transaction was not disclosed. ●

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NEWS

www.wbj.pl

JULY 8-21, 2013

International

Security

Foreign ministry issues warning Investigation continues into to Poles vacationing in Egypt

June bomb scare

Tourists are advised not to venture out of holiday resorts

SHUTTERSTOCK

Following the Egyptian army’s removal of Mohamed Morsi from his position as president of Egypt and the subsequent instability, Poland’s foreign ministry has warned Polish tourists vacationing in the country not to leave their holiday resorts.

“It is important to differentiate between the situation in the holiday resorts on the Red Sea where it is safe and where the situation with petrol supplies has improved, and what is happening deep inland in Egypt, especially in big cities,” Polish foreign ministry spokesperson Marcin Bosacki told Radio Zet. “We are decidedly advising [Poles] not to go to the inland, in fact we are appealing to them not to leave the resorts,” he added.

After removing Mr Morsi from his position, the Egyptian army installed Adly Mansour, head of the Supreme Constitutional Court of Egypt, as interim president. It also suspended the constitution and ordered

One man has been arrested so far, but it may be difficult to bring charges against him

For the second time in three years, people power has dethroned a president in Egypt the arrest of hundreds of leaders and members of Mr Morsi’s political grouping, the Egyptian Muslim Brotherhood. Mr Morsi himself has been put under house arrest.

The events came after days of mass protests against the former president’s government.

Democracy ’temporarily frozen’ Regarding the current situa-

tion in the Arab world’s most populous country, Poland’s foreign ministry issued a statement saying, “It is with concern that we received news of the suspension of Egypt’s constitution and the removal of President Mohamed Morsi from power.”

“Such a solution must be treated as at least a temporary freeze of the democratic

process initiated by the Egyptian nation over two years ago,” it added.

The foreign ministry also said that “What is most important today is that the current Egyptian authorities – staying true to their promises – undertake the fastest possible steps to return full power to democratically elected representatives of society.”

Remi Adekoya

On June 24 e-mails containing bomb threats were sent to more than 20 institutions in Poland, including hospitals, prosecutors’ offices and shopping malls. Each had to be evacuated and searched, shutting down their operations, though police suspected from the outset that the threats were false. The evacuations often proved difficult, especially in the hospitals, where patients – some with pressing needs – had to be moved. Fortunately, the threats were indeed a hoax, and no one was harmed.

Within the next 24 hours two men were apprehended in connection with the case but were soon released because the evidence collected was not sufficient to press charges.

A third man – already a suspect in several internetbased fraud cases – was

detained on June 28 at an airport in Katowice, in southern Poland. According to investigators, the man sent the bomb threats from the United Kingdom, where he was residing.

He will remain in custody for three months while the police continue their investigation.

However, various Polish media have reported that prosecutors could have significant difficulties proving that the suspect was behind the bomb threats.

“The Central Bureau of Investigation was sure that these men would break under pressure and confess, giving the authorities all the evidence needed to convict them. That however did not happen,” daily Rzeczpospolita reported an unnamed source close to the case as saying.

The investigation is being complicated further by the international nature of the crime, and the fact that foreign authorities must also be consulted on the proceedings.

If found guilty, the suspect faces up to eight years in prison.

Jacek Ciesnowski

BUSINESS

JULY 8-21, 2013

www.wbj.pl

5

Pension funds

Major changes are coming to private pension funds, and they will likely mean a huge transfer of money to the publicrun system

more pressing.

Supporters of the proposals say that moving most pension contributions to the public-run system ensures a greater measure of security and that OFEs have focused more on profits for management than on maximizing potential pension payouts.

Finance Minister Jacek Rostowski said that the new revised system would “bring sizable benefits to the Polish economy, to its public finances, and most importantly to the pensioners themselves.”

But Krzysztof Rybiƒski, a former vice president of the National Bank Poland, commented on his blog, saying, “Regardless of the final option chosen, it is clear that these mechanisms have been designed in a way which will lead to Poles moving their pension contributions to ZUS en masse. And it will most likely come to that.”

Prime Minister Donald Tusk has announced that in September the government will choose one of three proposals for reforming Poland’s pension system, all of which would likely see a huge transfer of pension contributions from the privately operated open pension funds (OFEs) to the public-run Social Insurance Institution (ZUS).

The proposals were made in a recent report prepared by the ministry of finance and the ministry of labor. The changes would significantly shore up Poland’s public finances, but are controversial. Many have criticized the move as mere creative accounting, when lesspopular structural reforms are

Three solutions

The first option for the future of OFEs as presented by the government sees bonds held

by OFEs redeemed and their value recorded within each insured person’s individual account at ZUS. This step is meant to help the Treasury reduce public debt. Moreover, OFEs would no longer be able to invest in treasury debentures and be forced to invest solely in the stock market.

The second option is to allow people to choose whether they want to stay in the OFE system. The finance minister said that each insured citizen would be given the option to send a written declaration that they wanted to remain in the open pension funds system. This step would likely mean a massive transfer of OFE funds to the state-run system, as few are expected to go to the trouble of providing the written declaration.

The third option also offers Poles a choice: either their entire contribution

COURTESY OF KPRM

Government mulls pension reform options

Finance Minister Jacek Rostowski (19.52 percent of their earnings) goes to ZUS or, if they wish to remain in the OFE system, then ZUS would only receive 17.52 percent of their salaries, while the remainder would go to OFEs. However, the latter option would also

entail an additional transfer of 2 percent of a person’s income to OFEs, so that the entire contribution would amount to 21.52 percent.

The current pension system in Poland comprises three pillars: the pay-as-you-go system

run by ZUS, the mandatory contribution to the privately operated OFEs and citizens’ voluntary investment in other pension and retirement products. This third pillar is not widely used.

Beata Socha

Airlines

Ryanair beats out LOT as Dreamliner issues persist The Irish carrier is now Poland’s most popular airline, while LOT’s Dreamliner problems drag on

COURTESY OF RYANAIR

Ryanair overtook LOT Polish Airlines in terms of the number of passengers served in Polish airports in the first quarter of 2013 and is now Poland’s most popular airline, according to data published by the Civil Aviation Authority.

In Q1, Ryanair served 1.22 million passengers in Poland, which gave it a 28.11 percent market share and the top spot in the ranking. LOT served 1.215 million and held a 28 percent share. Third place is held by another budget airline, Wizz Air, which served over

Dreamliner nightmare

Ryanair is now the most popular airline in Poland 846,000 passengers and had a 19.51 percent market share.

Ryanair’s rise is mainly the result of its change of airport for

serving Warsaw. At the end of 2012 it began flying to and from Warsaw Chopin Airport. The airline had previously operated from

Modlin Airport, which was closed for repairs from December last year until the beginning of July this year, due to a faulty runway.

In the meantime, LOT is still coping with losses it endured when Boeing’s Dreamliner planes were grounded due to battery issues earlier this year. The new machines were supposed to be the carrier’s flagship aircraft and boost ticket sales for lucrative longhaul routes, especially for first class and business class seats.

Treasury Minister W∏odzimierz Karpiƒski said in midJune in an interview with Polish Radio that the cost LOT incurred as a result of not being able to use the planes exceeded z∏.100 million. He added, however, that the airline wouldn’t be asking Boeing for that particular amount in negotiations. “We’re waiting

for our partner’s proposal on this matter,” he said, referring to Boeing.

Boeing announced that it would present its proposal in July. LOT representatives explained that part of the compensation could come in the form of discounts on future plane purchases.

In early July LOT was forced to cancel or postpone two Dreamliner flights due to technical issues, though the company refused to say whether they were related to the previous battery problems.

LOT currently has four Dreamliner planes out of the eight it has ordered. The fifth is expected to be delivered by the end of this month.

Kamila Wajszczuk, Jacek Ciesnowski

M&A

Asseco acquires Russian software firm The Polish giant has purchased a majority stake in another major IT firm, this time a Russian one Poland’s largest IT services provider Asseco Poland acquired a majority stake in Russian market peer R-Style Softlab. Almost a year after signing a letter of intent with the Russian firm, Asseco final-

ized the transaction, paying $28 million for 70 percent of the company’s shares.

Asseco may become the sole owner of R-Style Softlab in the future, as it has been granted a call option for the remaining 30 percent in the Russian firm, which the Polish software solutions provider will be able to exercise within the last eight months of 2016.

R-Style Softlab is the Russian market leader in providing

software for the banking sector.

The move marks the latest international acquisition by the Polish firm, which in late June bought a 51 percent stake in Georgian firm Onyx Consulting for $1.5 million. The Georgian company will now change its name to Asseco Georgia. Onyx Consulting is one of Georgia’s largest IT consulting firms. It focuses on services for the banking and

insurance sector and for public administration units. The company offers both its own and other IT firms’ software.

But Russia and Georgia are not the only markets Asseco is looking to for acquisitions. Earlier this year the company’s CEO Adam Góral announced that the company had shortlisted four Ethiopian companies to start doing business with. The Polish IT giant wants Ethiopia to become a

hub for its projects all over Africa.

“Our plan is to help Ethiopia build its own software in the future. We want to share our experience and training with the people who will be maintaining our solutions,” Asseco’s CEO Adam Góral was quoted as saying by Capitalethiopia.com.

The project in Ethiopia is set to be launched by the end of Q3 2013.

International takeovers are apparently going much more smoothly for Asseco than its conquests on the domestic front. After acquiring two Polish mid-sized IT firms, ZETO ¸ódê and ZETO Bydgoszcz in 2012 and early 2013, Asseco lost momentum and two further transactions, with ZETO Poznaƒ and ZETO Bia∏ystok, did not go through.

Kamila Wajszczuk, Beata Socha

6

BUSINESS

www.wbj.pl

JULY 8-21, 2013

Chemicals

The acquisition could bring the firm as much as z∏.100 million in savings per year Zak∏ady Chemiczne Police, part of the Grupa Azoty chemical holding, is in talks to buy a majority stake in a company in Senegal that explores and extracts natural resources. The value of the acquisition could

reach $30 million, ZCh Police said in a market filing.

The Senegalese company holds a valid license in the country for the exploration of ilmenite sand and tricalcium phosphate resources. “The purchase of shares of the Senegalese firm by Grupa Azoty’s Police is aimed at diversifying supplies of key production materials, which will allow for a

significant reduction of production costs of basic products,” the filing stated.

ZCh Police said that talks are still at an early, non-binding stage.

The move is aimed at lowering the cost of the raw materials it uses in its production.

The Polish firm produces 1 million metric tons of phosphorous and mixed fertilizers annu-

ally. So far, it has been buying phosphorite from Morocco, Egypt, Algeria and sometimes from Togo, Syria and Tunisia.

If the transaction is completed, Senegalese phosphorous could cover some 50 percent of ZCh Police’s needs. Analysts say this could save the company as much as z∏.50-100 million a Kamila Wajszczuk, year.

Jacek Ciesnowski

Leasing

Growth in car fleet management sector The sector is growing much faster than the Polish economy While the economic downturn has caused corporate car rental companies worldwide to hit a speed bump, the Polish car fleet management (CFM) sector has seen steady growth and increasing interest among firms looking to cut costs.

According to research conducted by the Polish Leasing Association, over 100,000 cars were leased last year, with fullservice leasing rentals taking

some 80 percent of the Polish CFM market. “Over the last few years the sector has grown faster than the average rate of the Polish economy. In 2012 the sector grew by 9 percent,” said Jaros∏aw Oworuszko, financial director at LeasePlan Fleet Management Polska.

The impulse that triggered the growth was the global economic slowdown. Companies began to cut costs, wanted to improve liquidity, as well as implement better business structures.

Moreover, the prospects of

Polish companies’ tendency to lease car fleets is growing, although CFM still has room to grow and has been around for only a decade in Poland.

“Polish branches of international companies which used similar services in the past understand the benefits that come from this type of outsourcing and are the ones most interested in what we can provide,” said Artur Sulewski, sales director at LeasePlan Fleet Management Polska.

Another reason this sector is growing more rapidly than

others in the automotive and freight industry may be due to the fact that “CFM services are tailored to fit the needs of specific firms and take flexibility seriously.” said Konrad Karpowicz, sales director at MasterLease.

Full service leasing is a mix of classical vehicle financing by leasing and various additional services, which include winter tire replacements, technical check-ups and repairs or even the possibility of training drivers.

Katarzyna Rybnik

COURTESY OF ZCH POLICE

ZCh Police in talks to buy Senegalese phosphorite producer

ZCh Police uses 1 million tons of phosphorite a year

PGNiG appoints acting CEO The supervisory board of Poland’s largest natural gas company PGNiG has designated management board member Jerzy Kurella as acting chief executive. Mr Kurella will perform the CEO’s duties until a new person is appointed for the position.

The company announced that the competition for the new CEO didn’t provide sufficient candidates for the position “They were all great managers, but did not fit our requirements,” said Treasury Minister W∏odzimierz Karpiƒski in an interview with the RMF FM radio station.

“I think that the new CEO

should concentrate on organizing extraction areas, as well as other things, including restructuring the company,” said Mr Karpiƒski. PGNiG will start a new competition for the CEO post because it is required by law to do so.

PGNiG’s previous CEO, Gra˝yna Piotrowska-Oliwa, was dismissed in late April due to the board’s poor communication with the Treasury Ministry and the fact that the government had not been duly informed about a memorandum signed by pipeline operator EuRoPol Gaz, co-owned by PGNiG, and Russia’s KW, JC Gazprom.

FINANCE & ECONOMICS

JULY 8-21, 2013

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7

Monetary policy

The council was clear in its post-meeting statement: monetary loosening has ended for now The National Bank of Poland’s Monetary Policy Council (RPP) cut its main interest rate for the eighth time in nine months at its sitting in early July, bringing the benchmark rate down to 2.50 percent, a new record low. The move had been widely expected by economists, despite signs of a tenta-

tive recovery in Poland’s economy.

“The cut is market-neutral, as the Polish curve has been pricing a 25bp cut with a risk of a hike one year ahead from now,” said Mateusz Szczurek, chief economist for CEE at ING Financial Markets CEE in an e-mailed comment.

“There is no surprise in the council’s decision,” Tomasz Kaczor, chief economist for Bank Gospodarstwa Krajowego told the Polish Press Agency. “I think that two factors contributed to such a

move. The first one is the current inflation level, which is close to zero. ... The second one is of course the [NBP’s latest inflation] projection which probably shows forecasts which convinced the council to cut rates by 25 bps.”

Economists were eager to hear whether the RPP would definitively signal the end of the easing cycle or leave the door open for further cuts. In its post-meeting statement, the council offered a clear indication that the easing cycle had indeed ended.

The RPP wrote that “the significant reduction of NBP interest rates implemented since November 2012 supports economic recovery and limits the risk of inflation running below the NBP target in the medium term” and “the decision to lower NBP interest rates made at the current meeting ends the loosening cycle of monetary policy.”

RPP chairman Marek Belka echoed that sentiment. “Having cut interest rates by 225 basis points [since November], we are ending this monetary

COURTESY OF THE NBP

RPP cuts as expected, signals end of easing cycle

Mr Belka says “the worst is over” for the Polish economy policy easing cycle and we are turning to what you can call a neutral approach,” he said at a press conference after the

RPP sitting. “The worst is over for Poland’s economy,” he added.

Andrew Kureth

Production

Manufacturing sector still contracting, but shows signs of improvement sector for over two years,” the report read.

“The rise in new work did not generate an overall increase in production in June, partly reflecting ongoing destocking efforts at manufacturers. Final goods inventories declined for the fourth month running, and at the fastest rate since February 2011. The volume of output was broadly unchanged since May, and has not risen since April 2012.”

Commenting on the figures Agata Urbaƒska, economist for Central & Eastern Europe at HSBC, pointed out that the contraction of employment in the sector was slower than had been seen in several months.

“This allows hoping that this

Unemployment falls to 13.5% in May A long way back down Poland’s unemployment rate, May 2011-May 2013

15 14 13 12 11 Ma y Jun ’11 .

Jul ’11 .

Au ’11 g.

Se ’11 p.

Oc ’11 t.

No ’11 v.

De ’11 c.

Jan ’11 .

Feb ’12 .

Ma ’12 r.

Ap ’12 r.

Ma ’12 y Jun ’12 .

Jul ’12 .

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Oc ’12 t.

No ’12 v.

De ’12 c.

Jan ’12 .

Feb ’13 .

Ma ’13 r.

Ap ’13 r.

Ma ’13 y ’1 3

Poland’s registered unemployment rate fell to 13.5 percent in May, statistics office GUS said. The figure is in line with an estimate published by the Labor Ministry earlier this month. In April, the jobless rate was 14 percent. The market had expected the rate would be slightly higher, at 13.7 percent.

In an e-mailed comment, BZ WBK economists wrote that due to severe winter weather in April, increased hiring in seasonal jobs was postponed until May this year.

They also pointed to intervention from the Labor Ministry which sent some 50,000 workers to subsidized jobs and training courses.

The third factor was: “weak inflow of new jobless

Source: Central Statistical Office

claims – in May 176.2k new unemployed were registered, and this number posted a decline in annual terms for the first time since March 2012. The latter fact can be a

sign of improving labour market conditions, but we should observe if this tendency is confirmed in the upcoming months,” the economists KW wrote.

improvement will not fade as it did in the first months of 2013,” she said.

“On average Q2 was weaker than Q1 but a stronger finish in June indicates better results in Q3. The bigger picture is that growth in the manufacturing is still bordering on contraction but June PMI reading suggests it might swing into growth in Q3. We assume the economy has bottomed in H1 2013 and a gradual though slow recovery will follow.”

The figures come after a raft of economic data that seem to show a tentative recovery in Poland. Unemployment for May came in lower than expected, at 13.5 percent, while retail sales surprised with growth, when

Producing recovery?

Poland’s manufacturing PMI reading*, June 2011-June 2013

55 53 51 49 47 45 Jun .

Jul ’11 .

Au ’11 g.

Se ’11 p.

Oc ’11 t.

No ’11 v.

De ’11 c.

Jan ’11 .

Feb ’12 .

Ma ’12 r.

Ap ’12 r.

Ma ’12 y Jun ’12 .

Jul ’12 .

Au ’12 g.

Se ’12 p.

Oc ’12 t.

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Jan ’12 .

Fe ’13 b.

Ma ’13 r.

Ap ’13 r.

Ma ’13 y Jun ’13 . ’1 3

Poland’s manufacturing sector continues to contract, but is showing the best signs of life in a year, according to the June purchasing managers’ index (PMI) reading released Monday.

HSBC and Markit, who compile the figures, said that Poland’s June PMI reading was 49.3, below 50.0 and therefore indicating contraction, but up by 1.3 points on the previous month. It was the second month in a row of improvement and the highest reading since July of last year.

Nevertheless, the sector is not out of the woods yet. The reading was the 15th in a row that showed business conditions in the manufacturing sector were worsening.

The report released with the figures said that the reading was “indicative of only a marginal overall worsening in the business climate.”

“The volume of incoming new work increased for the first time since the start of 2012, leading to a broad stabilisation in the level of output,” it added.

“New order growth resumed in June, albeit at a marginal pace. Expansion was supported by higher new export orders – only the second increase registered in the

*A reading above 50 indicates expansion, below 50 indicates contraction

Source: Markit Economics, HSBC

many analysts had expected a contraction (see accompanying stories).

However, industrial output fell by 1.8 percent in May, in

line with expectations, and Poland’s inflation rate remains well below the central bank’s target, at 0.5 percent.

Andrew Kureth

Retail sales surprise on the upside Retail sales in Poland grew by Slow spending 0.5 percent year-on-year and Poland’s retail sales growth y/y (%), May 2011-May 2013 by 1.6 percent month-onmonth in May, statistics office 15.0 GUS said. Economists surveyed by the Polish Press 10.5 Agency had expected retail sales to drop by 0.1 percent y/y 6.0 and to fall by 0.4 percent m/m.

“The retail sales data was better than we had expected 1.5 but is generally consistent with our scenario of gradual eco- -3.0 nomic acceleration, partly driven by stronger private consumption,” Citi economists Source: Central Statistical Office wrote in an e-mailed comment.

In real terms, when adjust- analysts, this implies “a “We expect GDP growth to reach 1.5-2.0 percent y/y in H2 ed according to inflation, noticeable pick-up in con2013 after 0.5 percent growth retail sales increased by 1.2 sumer spending.”

KW percent y/y. According to Citi in Q1,” they wrote.

Ma y Ju ’11 n.

Ju ’11 l.

Au ’11 g Se . ’11 p Oc . ’11 t No . ’11 v De . ’11 c Ja . ’11 n Fe . ’12 b Ma . ’12 r Ap . ’12 r Ma . ’12 y Ju ’12 n.

Ju ’12 l.

Au ’12 g Se . ’12 p Oc . ’12 t No . ’12 v De . ’12 c Ja . ’12 n Fe . ’13 b Ma . ’13 r Ap . ’13 r Ma . ’13 y’ 13

The figures come after a raft of economic data that seem to show a tentative recovery

INTERVIEW

www.wbj.pl

WSE second in European IPOs There were 18 debuts on the Warsaw Stock Exchange in the second quarter of 2013, the second-highest number in Europe. The total value of the IPOs was €44 million, according to a PwC report. Out of those 18 debuts, only three were carried out on the main bourse of the WSE. The total value of these three was €42.4 million. The remaining 15 debuts were on the alternative NewConnect index.

PKP PLK gets €40 mln loan PKP PLK, a subsidiary of Poland’s state-owned railway group PKP, has received a €40 million loan from the European Investment Bank. The money has been earmarked for upgrading rail tracks and the firm’s signaling system in eastern Poland. PKP PLK will modernize tracks and platforms at the Siedlce, ¸uków and Mi´dzyrzec Podlaski stations, located between Warsaw and the border with Belarus, as well as the signaling system between Siedlce and Bia∏a Podlaska. ●

JULY 8-21, 2013

Migration policy

Immigration, demographics point to big challenges ahead for Poland WBJ sits down with Monika Prus, director of the migration policy department in the Interior Ministry to talk about the EU’s migration policy and challenges for Poland Ewa Boniecka: Migration policy has become a rather hot topic in the EU. Due to the continued economic slowdown, attitudes towards immigration seem to be changing in some member states. How do you see the situation?

Monika Prus: At the EU level, there are no changes to the generally accepted principles related to legal migration, including labor migration.

But there are extremist political parties active in some EU member states trying to exploit the presence of immigrants for their own political gains. How do you see the impact of these developments?

It’s important to remember that the scale of migration in particular EU countries is different, which requires these countries to specifically

However, irrespective of the scale of migration, each country needs integration programs, addressed to immigrants but also to the entire society, particularly to local communities.

Let’s look at the situation in Poland. In July 2012 the

“The [current] effect of foreigners on our economic and social life is hardly significant, at least on a national scale.” tailor their migration policies.

For instance, in Poland the number of immigrants does not exceed 0.5 percent of the total population, while in some EU countries it is up to several percent, and this explains why political parties may be interested in migration issues.

Council of Ministers accepted a document dealing with Poland’s migration policy in its strategic aspects. What are the practical implications of this document?

The report recommends a number of solutions, for example simplifying laws and procedures for granting resi-

COURTESY OF THE MINISTRY OF THE INTERIOR

8

Monika Prus says that the labor market is becoming the key factor determining Poland’s migration policy

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INTERVIEW

JULY 8-21, 2013

dence permits, changing the way migration authorities work and developing integration programs.

The report says it is necessary for Poland to work on integration policies for foreigners. However, this is a huge challenge, because it requires many institutions of public administration, local communities, non-governmental organizations and even media, to work together.

Currently a group of experts appointed by the inter-ministerial Committee for Migration is working on an action plan for Poland’s migration policy. Several recommendations have been discussed so far and most of these have already been fully or partially implemented.

What are the main challenges to Poland’s migration policy?

There are about 200 issues discussed in the government report. It’s difficult to say which conclusions and recommendations are the most important, because all of them should be regarded as part of a comprehensive system.

For instance, according to estimates by the Polish Central Statistical Office, Poland’s population will probably have decreased by 1.2 million by 2030. In a few years we will already see the first consequences of the changes in the age structure of society and of a marked decline in the size of the working population.

The labor market is becoming the key factor determining Poland’s migration policy. It requires legislative and institutional changes, as well as better monitoring of migration.

There have been several negative reports in Polish media regarding the treatment of unauthorized immigrants.

These people are reportedly kept in detention centers and the legal procedures required to grant them residence permits take too long. What is your view?

Two independent groups have reviewed these allegations, one from the the Ministry of the Interior and one from non-governmental organizations. After completing their inspections in these detention centers, both reports for the most part did not confirm the allegations raised by the media.

However, a number of proposals submitted by NGOs were taken into consideration. The Ministry of Interior organized a series of talks in January this year with NGO representatives. A number of valid points were raised in these talks which were later reflected in the new draft law on foreigners, which was adopted by the

government on June 18.

The most important changes include replacing detention with alternative measures, such as requiring unauthorized immigrants to make regular appearances before a competent authority, to surrender their passports or to stay in an indicated place. Minors under 15 years of age may no longer be placed in detention unaccompanied by adult guardians.

If detention is necessary, the time the person spends there should be as short as possible, no longer than three months, or in some specific cases it could be extended to a maximum of one year.

According to data from the Mazowieckie voivodship, almost 7,400 people applied to legalize their stay as part of a nationwide program conducted last year. The group included 2,032 Vietnamese citizens, which makes them the most numerous group.

and does Poland have financial support from the EU to manage the border?

In 2012, 37.5 million border crossings were recorded at the portion of Poland’s border which is also the external EU border. Out of that number, there were 25 million crossings by foreigners.

In the same year, border guards captured about 3,000 third-country nationals who were illegally attempting to cross the border. More than 32,000 decisions refusing entry into Polish territory were issued.

Poland receives funds specifically earmarked for border protection. It has already made use of more than €283 million for improving infrastructure at border crossings and purchasing modern equipment.

The funds came from Schengen Financial Instrument 50. Also, the EU allocates a lot of funds for provid-

“[Effectively integrating foreigners] is a huge challenge, because it requires many institutions to work together.”

About 70 percent of them have already received positive decisions and currently reside in Poland legally.

How many immigrants are currently living and working in Poland and what are the effects of immigration for Polish economic and social life?

According to the Office for Foreigners, at the end of 2012 there were nearly 112,000 foreigners in Poland who had residence permits, including 48,000 who had permission to settle in Poland, 54,500 with temporary residence permits, and 5,700 with long-term EU residence permits, and other permits for people who were granted international protection by Poland. The greatest number of permits were held by nationals of Ukraine, followed by those from the Russian Federation, Vietnam, Belarus and China.

Additionally in 2012, about 1.3 million foreigners were allowed to enter Poland on the basis of visas issued by Polish consulates.

All this data suggests that the effect of foreigners on our economic and social life is hardly significant, at least on a national scale. They may have some influence on a local level, but still of little importance.

Poland is a border country of the EU. How efficiently is our eastern border controlled

ing appropriate security standards at land, sea and air borders, as well as for ensuring the implementation of Schengen legislation.

Currently Poland is making use of the resources from the External Borders Fund. The EBF allocated over €70 million to Poland for the 20072013 period. The money is used to co-finance investment projects (border control equipment, vehicles, IT systems and equipment), improving infrastructure, as well as other projects (such as employee training).

Do you think that Poles will ever be able to accept the changes that come with a multicultural society, as can be seen in some Western European countries?

The Ministry of Labor and Social Policy is currently preparing a document on Poland’s integration policy.

The document will emphasize the role of integration policy and will propose activities aimed at improving the integration of foreigners in our society.

It is important that the government recognizes the significance of this issue. The report we discussed earlier examines the matter in some length and points out that school programs, multicultural education, better communication and information campaigns are factors that can improve social acceptance of foreigners in the future.●

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9

10

OPINION & ANALYSIS

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JULY 8-21, 2013

The transatlantic free-trade imperative Alfred Gusenbauer

T

he confirmation of Michael Froman as the US Trade Representative is a fitting moment to highlight the many opportunities that a free-trade agreement between the European Union and the United States would offer Europe, America, and the world.

Today’s three-tier global economy – 6 percent growth in emerging markets, 2 percent growth in the US, and no growth in Europe – shows ominous signs of paralysis and nationalistic unilateralism. Many see currency wars looming.

factor may be a basic difference in mentality: many Europeans tend to over-emphasize risk when assessing opportunities.

pean industries – including producers of glass, steel, chemicals, and pharmaceuticals – to invest heavily in the US. Often, they manufact u r e high-

Historical view

SHUTTERSTOCK

In such an economically insecure global environment, riddled with protectionist booby traps, a free-trade pact between the world’s two largest trading blocs, accounting for roughly 40 percent of global GDP, has never been more important.

Historically, free trade and

“Today’s global economy show ominous signs of paralysis.” economic growth have gone together, as have protectionism and stagnation, and deeper trade integration of the US and EU economies would strengthen growth on both sides of the Atlantic.

The US economy’s projected 2 percent growth this year, despite a 1.8 percent-of-GDP cut in government spending, implies real private-sector growth of 3.8 percent. Although both the Federal Reserve and the European Central Bank have actively intervened to boost economic recovery, the results could not be more different.

In the US, the banking crisis was tackled rapidly and in a sustainable manner, while Europe is still going from one bailout to the next. Moreover, America’s stimulus program obviously worked (notwithstanding criticism from the left for being too small, and attacks from the right for being too large). Another contributing

Bill Clinton, failed because of the EU’s rigid, antiquated agricultural policy. A new effort would help Europe to replace its agricultural policy with a research-and-development policy aimed at boosting industrial competitiveness.

Despite all the lip service paid at multilateral summits to policy coordination, imbalances within the global economy are fueling a rise in tensions. At a time when many are seeking salvation in nationalism, an EUUS free-trade zone would be a powerful symbol of cooperation in overcoming global challenges.

The increasing economic weight of Asia is also a geopolitical game-changer. China’s massive arms build-up shows that economic power without military power is only a temporary phenomenon. So the focus in world politics is shifting from the Atlantic to the Pacific.

Europe should know where it belongs. An EU-US freetrade zone would strengthen transatlantic political bonds and effectively refute the frequent lament that America has lost interest in Europe.

In his second inaugural address, President Barack Obama called an EU-US free-trade zone a core project of his second term. Secretary of State John Kerry repeated this during his visit to Germany this spring. Now it is up to export-oriented EU countries like Germany, the Netherlands, Sweden, and Austria to press for action on the American offer of negotiations.

In any case, America is the first country in the recession-stricken part of the global economy where public stimulus has led to enough private investment and growth that fiscal consolidation has become possible. The more America and the EU grow together, the more the EU will benefit from the US recovery.

Demand for European goods will increase, and the EU’s member states can – and should – align their economies with US growth. History suggests that the hope for a self-sustained recovery in Europe might well prove deceptive; almost always, the European economic cycle has followed and reinforced that of the US. Today, for example, a prolonged

recession in Europe is, alongside budget cuts, generally seen as posing the greatest risk to a sustained US recovery.

Winning recipe Labor costs in the US industrial sector are currently 25 percent lower than the European average. Even more significant, however, are the differences in energy costs, which are now up to 50 percent lower in the US – a gap that is likely to widen further as America’s shale-gas revolution continues.

This has led energy-intensive Euro-

quality upstream products, which are then processed further in Europe. The Austrian steel producer Voestalpine AG, for example, will start producing steel pellets in the southern US that will then be upgraded to high-quality alloys in Austria.

The combination of lower production costs in the US and Europe’s world-class finishing capabilities is a recipe for first-rate products at competitive prices. In this way, European investment is contributing to the reindustrialization of the US while simultaneously ensuring high-quality European jobs.

But Europe must do more to reinvigorate its own manufacturing sector. The last attempt to create an EUUS free-trade zone, under President

Enough navel-gazing Europe has engaged in navel-gazing for long enough. Its malaise has raised questions about whether its democratic capitalism will survive the economic challenge posed by authoritarian and quasi-authoritarian regimes.

I, for one, prefer making political decisions to wallowing in doubt and self-pity. A transatlantic trade pact would align both economies with the fundamental interests of the West. ● Alfred Gusenbauer was chancellor of Austria in 2007-2008.

Copyright: Project Syndicate, 2013.

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Patients without borders How will the new EU directive for cross-border health care, which allows patients to receive reimbursement for the cost of treatment in other EU countries, affect Polish hospitals? 13

Package deal Travel agencies are offering expanded packages combining treatment and 14 rehabilitation with sightseeing

MEDICAL TOURISM A

W a r s a w

B u s i n e s s

J o u r n a l

s p e c i a l

r e p o r t

JULY 8-21, 2013

Medical tourism in Poland

Poland a hotspot for medical tourism If you ask an average Pole about his views on his country’s health care system, you are likely to get an answer such as “bad” if not “terrible.” In a recent poll by TNS Polska, 75 percent of respondents described the condition of Polish health care as poor.

On the other hand, in 2011 alone, foreigners spent z∏.800 million in medical facilities in Poland, according to MediTour, a travel agency specializing in medical tourism. Analysts estimate that the sector is expanding at a double-digit growth rate each year.

Poles and foreigners view Polish health care so differently because those two groups of patients do not usually visit the same facilities. “In Poland we have a system of public health care which is grossly ineffective. But we also have a number of private clinics,” said Ada Kostrz-Kostecka from the European Center for Enter-

SHUTTERSTOCK

Lower prices, highly skilled staff and stateof-the-art equipment are attracting tourists to Polish clinics and spas

Poland is a popular destination for plastic surgery prise. “These clinics were established to make up for the ineffectiveness of public hospitals. They were sometimes established by doctors who were looking for better sources of income and possibilities for development.”

So, while Poles complain about state-supported hospitals, foreigners go to private health centers. Usually they

come for outpatient procedures, such as botox injections or dental implants.

Competitive advantage What lures them to Poland are usually lower prices. According to a price list compiled by polandmedicaltourism.com, a dental implant costs on average $700 in Poland, while in the US and the UK it can

exceed $4,000. Breast enlargement, another procedure popular with foreign patients, starts from $3,700 in Poland, compared to $10,000 in the US and $7,000 in the UK. But low prices are not enough to convince Europeans to start booking operating rooms for elective surgical procedures. They must also be convinced they’re putting their lives

and well-being in capable hands. Fortunately, Polish medical staff is considered well-educated and very efficient.

In fact, many hospitals in the EU have brought on highly qualified Polish medical personnel. Since Poland’s entry into the EU, thousands of doctors and dentists have been leaving the country every year to work in medical facilities in many European countries.

That number has decreased in recent years, with 1,711 doctors leaving Poland in 2005 compared to only 270 in 2012.

One of the reasons for the decrease is the fact that their salaries have finally caught up to Western European levels, so they’re not so keen to leave the country any more.

Naturally, Poland is not the only country that promotes its cheap but professional health care services to foreigners. In Europe alone it has encountered stiff competition, mostly from Hungary, the Czech Republic, Cyprus and Turkey.

Sometimes when it comes to choosing a destination for a medical procedure, the reasons might be simple. For example, Italians prefer going to Romania, because it’s much

closer. Belgians often choose Hungarian spas and hot springs only because many budget air carriers offer cheap flights between the two countries.

Spas and great views Even though Polish hot springs are not so popular abroad yet, the country has a long tradition in unconventional healing methods. Poles were drinking therapeutic mineral water back in the 17th century, long before the term “hydrotherapy” was even coined. There are over 40 health resorts in Poland, mostly in the Beskidy and Sudety mountain regions, as well as over 200 wellness and spa centers. They all use state-of-theart equipment and modern therapy methods, while making use of rich natural resources.

According to Ms KostrzKostecka, Polish spas and wellness centers attract mostly tourists from the former Eastern bloc countries, but also Scandinavians and Germans. “These are the countries with a long tradition of using natural resources for healing various medical condiContinued on p. 12 ➡

Interview

WBJ sat down with Ada Kostrz-Kostecka, coordinator of the Polish tourism promotion government program at the European Center for Enterprise, to talk about the opportunities and challenges for Polish hospitals, the new EU directive on cross-border health care as well as about new trends in medical tourism Beata Socha: How big is the medical tourism sector in Poland and how quickly is it developing?

Ada Kostrz-Kostecka: According to our estimates the sector records double-digit growth every year. However, it is difficult to compile precise data.

Currently, medical tourism consists mostly of individuals choosing Polish dentist surgeries or having cosmetic surgeries done in Poland. These patients are difficult to keep track of.

But Polish hospitals are already widely regarded as well-equipped, offering high quality procedures performed

by well-qualified specialists at very moderate prices. We are highly competitive, even compared to countries which have established themselves as destination countries for world medical tourism, including India or Thailand.

Why do Europeans choose Polish health centers instead of their own?

There are a variety of reasons why patients from other countries choose Polish clinics. The first and most obvious is the price-to-quality ratio. Cosmetic surgery and dental services are good examples here. Polish centers are considered safe

and at the same time they offer procedures at far lower prices than for example centers in Germany or Scandinavia. Sometimes patients have to wait a long time to receive treatment in their own country so they come to Poland if they can get it here more quickly.

There are also procedures which require very expensive equipment, such as very sophisticated cybernetic tools used in surgery. Bigger countries have a few of those, while smaller ones, like Denmark, don’t have any. In Poland this type of medical procedure is offered by the Institute of Cybernetic Surgery, located in Wieliszew, near Warsaw.

Are there any other types of services, apart from surgery and dentistry, that Poland can offer?

There is a big market for the spa industry as well. On the

COURTESY OF THE POLISH TOURIST ORGANIZATION

A nascent industry with plenty of potential

Kraków is Poland’s leader in the medical tourism sector one hand we have a large number of tourists from the former Eastern bloc countries, such as Ukraine or Russia, coming for a stay in Polish spas and wellness centers. On the other hand, we also have a number of tourists from Germany or Scandinavia, coming

for example to Polanica Zdrój or Ko∏obrzeg at the seaside.

These are the countries with a long tradition of using natural resources for healing various medical conditions.

Additionally, there is a growing number of Polish emigrants, for example people

In this supplement Medical tourism in focus . . . . .11, 12 Interview with Ada Kostrz-Kostecka . . . . . . . .11, 12 Interview with Dariusz Wojtak . . .13 EU cross-border directive . . . . . . . .13 Tourism packages . . . . . . . . . . . . . .14

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JULY 8-21, 2013

Poland a hotspot for medical tourism ➡ Continued from p. 11 tions,” Ms Kostrz-Kostecka explained.

To further encourage potential clients, clinics, spas and travel agencies are beginning to join forces to offer foreign patients entire medical packages that include not only medical treatment itself but also spa stays and trips to various cultural and historical sites. This way patients can undergo rhinoplasty, recuperate in luxury conditions and visit the salt mine in Wieliczka all in one stay.

Servier’s international clinical trial center, both located in Warsaw.

Some medical institutes set themselves apart by specializing in unique procedures that are not performed in other countries. “We’re one of very few facilities in the world which treats chronic cerebrospinal venous insufficiency (CCSVI) and we’ve already had over 1,500 patients from all over the world treated in our hospital for this ailment,” said Anna Brz´ska-Mikoda, CEO of Katowice-based clinic EuroMedic.

Unique procedures Promotional offensive A study prepared by the Polish Tourism Organization outlined potential countries where Poland could look for medical tourists. The report highlighted the United Kingdom, Russia, Germany, Scandinavia and the US as countries with the biggest interest in coming to Poland for various treatments.

The biggest obstacle is still insufficient infrastructure from local tourist agencies.

The medical packages busi-

SHUTTERSTOCK

Price competitiveness aside, Polish health care is also striving to be on the cutting edge of medical knowledge and research, and not without success. Its clinical trials sector is the largest in the CEE region, with a value estimated at z∏.1 billion. There are some 500 clinical trials conducted in Poland every year, with more medical research centers moving in every year. Some of the recent examples include AstraZeneca’s new pharmaceutical trials hub, and French

Foreigners can have their procedure done in Poland and then head to a tourist destination such as the Wieliczka salt mine near Kraków ness is still in its early stages and often patients have to do their own research and use their own contacts when visiting Polish health facilities.

Promotional campaigns are still relatively rare, and many entities are reaching out to

potential patients from abroad on their own, without one centralized framework targeted at foreign tourism operators. For example Wroc∏aw-based Euromedica is targeting UK residents as potential clients for its cosmetic procedures.

Sometimes, local authorities try to promote medical tourism in the area.

Warmiƒsko-Mazurskie voivodship, for example, is focusing its marketing activity on patients from Russia’s Kaliningrad Oblast, who are already fre-

quent clients in medical facilities there. In a single hospital in Olsztyn, Russian patients spent z∏.126,000 in 2012 alone.

Another example is Bydgoszcz, which is trying to attract Irish clients by sending their city officials and medical centers’ representatives to Irish trade shows. The city already managed to establish itself as touristfriendly during the 2012 European soccer championships co-hosted by Poland and Ukraine (many Irish fans stayed in Bydgoszcz during the tournament).

To integrate all these promotional activities, last year the Ministry of Economy introduced a program aimed at promoting medical tourism in Poland. It looks to promote Polish health services throughout the world, by offering competitive prices along with highly educated and professional staff. It’s earmarked for the 2013-2015 period and includes promoting Polish facilities on various international fairs. The program is co-financed by the EU (see interview on pp. 11-12 for more details).

➡ Continued from p. 11 who moved to the US or to Scandinavian countries years ago, and who come back to Poland to receive treatment in Polish spas.

Which cities in Poland are most frequently visited by tourists seeking medical services?

It depends on the reason patients have for coming to Poland. Those looking to get dental implants or a crown look for dentists in large Polish cities, mostly in Szczecin, Poznaƒ, as well as Kraków. Also many hospitals located near the borders attract tourists with their medical services.

However, an increasing number of clients expect a comprehensive service, not only the medical procedure but also various tourist attractions included in the trip. For some clients it is even a prerequisite for choosing a particular clinic.

This, of course, depends on the nature of the treatment they receive. Patients seeking more invasive surgical procedures often come with their family here and they look for tourist attractions for them.

The more comprehensive the service these centers can offer, the better their chances for success on the European market.

Are there many companies in

Poland which offer their clients such comprehensive services?

Most of the companies organizing such trips are tourist agencies which are looking to expand their business into new market niches. There are also firms which specialize only in medical tourism, but most of them are still relatively young.

There is still a lot of uncharted territory in these services.

However, more invasive medical procedures usually require comprehensive services, anyway. The agent organizing the trip has to take care of the logistics, like travel arrangements, bringing the patient to the hospital, organizing accommodation for the family, etc. An increasing number of hospitals and clinics cooperate very closely with agents who handle the logistics of such endeavors.

hotel stays, promotional materials etc., while 75 percent of these costs are paid for by EU funds.

Secondly, we promote the entire sector of medical tourism. We gather information from individual clinics about their equipment, staff as well as procedures they perform, and we put it together in promotional brochures we publish. We’ve prepared a film on medical tourism which we show at fairs. We also run a website for promoting medical tourism.

Finally, we offer clinics assistance with establishing business contacts, we organize meetings and business mixers at economic missions. We invite representatives of potential business partners, foreign reporters and show them the clinics we want to promote.

How does the European Center for Enterprise support Polish medical centers in attracting international patients?

Our organization helps Polish medical centers in a variety of ways. Firstly, we organize a number of fairs and economic missions. We participate in the EU Innovative Economy program, which covers the cost of organizing such events. Clinics only have to cover 25 percent of their participation expenses, such as

How do you select the clinics you promote?

This is an open program so any medical center can take part in it. But there are some entry costs involved, so not every clinic is suitable to participate. Note that these centers still have to cover 25 percent of their participation costs and that can be quite an endeavor.

Besides, medical tourism must be a part of the company’s strategy for the campaign to make sense. It can’t just be a

one-off promotional stunt.

We’ve had a case where a hospital withdrew after only the first presentation in front of reporters. The hospital’s representatives realized that the quality they could offer was far from competitive and that their facility was not ready to attract foreign patients.

The clinics we promote must be able to cater to their clients’ needs, their staff needs to have sufficient command of English, their call centers have to be prepared to give the necessary information efficiently.

Although we are running out of the EU funds for covering the 75 percent of the companies’ representation costs, there are still individual programs available and all medical centers interested in offering medical tourism services can benefit from the promotional campaigns of the sector that we keep organizing.

There is a new EU directive which will offer EU patients more flexibility when choosing their medical service providers. How will it work?

According to the new directive, patients will be able to receive reimbursement of the costs of medical procedures they get in other EU states.

Patients will still pay in the clinic where they receive treatment but then their own state will reimburse their expenses up to a sum for

COURTESY OF ADA KOSTRZ-KOSTECKA

A nascent industry with plenty of potential

Ada Kostrz-Kostecka from the European Center for Enterprise which the treatment is covered in their own country.

What is of the utmost importance now is providing patients with information. A patient who wants to get a tooth implant and would have to wait in a long line to get one at home must have easy access to reliable information on where he can get it sooner.

That would require a centralized database with all the available clinics and hospitals. Does Poland offers such service?

Not yet and this is the greatest

challenge Poland has yet to face. According to the new directive, each country has to prepare “national contact points” capable of providing patients with information on what medical procedures are available, in which cities, what the costs are etc.

Most countries are almost ready with such contact points.

But Poland is only just beginning to work on its information center. This lack of reliable and centralized information is the biggest barrier for Polish medical tourism right now. ●

MEDICAL TOURISM

JULY 8-21, 2013

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Interview

European Union

Border towns benefiting from medical tourism in Poland

New EU directive to boost Polish hospitals

Poland is attractive because it offers high-quality medical services at a price much lower than in Western European countries. We have modern equipment and specialist doctors on a very high European level. The same quality of treatment in Poland can cost several times less than in many European countries.

Are there any particular cities in Poland that are already attracting significant

And why would Poland be an attractive location Once Poland’s health care market becomes saturated with domesfor foreigners? tic patients, medical tourism will take off, according to Mr Wojtak

A new EU directive will make Polish hospitals more attractive, experts say Polish hospitals may benefit from the new EU directive for cross-border health care, which is set to go into effect on October 25, 2013. EU citizens will be able to receive reimbursement for the cost of treatment they get in other EU countries. According to the new law, treatment costs will be covered by the patient’s country of origin up to an amount provided for a comparable procedure performed in the country.

Medical tourism experts see this as an opportunity for Polish hospitals. “Since medical services are cheaper in Poland, foreign patients may receive as much as 100 percent of their expenses back,” said Ada Kostrz-Kostecka, coordinator of the Polish tourism promotion government program at the European Center for Enterprise.

The views on how important the legislative change will

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SHUTTERSTOCK

Remi Adekoya: How large is the medical tourism sector in Poland?

Dariusz Wojtak:Well today it is not a very big sector. Most of the clients who patronize this sector are from neighboring countries like Germany or Sweden, for example.

It is not big yet because since there are so many problems with Poland’s public health care sector, there is huge demand for private medical services from Poles themselves and so private health care providers are not yet fishing for clients abroad. They are making good money from domestic clients.

However, there will come a time when the Polish market is saturated and then providers will start looking for clients elsewhere.

numbers of foreign medical tourists?

As I mentioned earlier, currently it is mostly foreigners from neighboring countries who come to Poland for such services and so it is the Polish cities which are close to the borders that are getting the most business. However, the recent EU directive which will enable European patients more flexibility in choosing where they are treated should help. Due to this directive, patients all over Europe will now be able to basically choose where they would like to receive medical treatment and the costs will be reimbursed by their respective national health funds. ●

SHUTTERSTOCK

Dariusz Wojtak, vice president of the Polish Tourism Chamber (PIT), talks with WBJ about the medical tourism sector in Poland and how it is developing, its potential and prospects for the future

EU medical tourism market is estimated at some €10 billion a year be for the tourism industry are far from uniform, though.

Because people usually prefer to receive health care services at home, the European Commission estimates that crossborder business will represent only around 1 percent of public spending in the EU. Even though that is not a high percentage, it would amount to roughly €10 billion per year for the entire region.

“Although it’s hard to predict the exact effect the new EU law will have on the sector’s growth, it will no doubt

make Polish hospitals more attractive. We expect the new directive’s effects to be the strongest for cities near the borders,” Ms Kostrz-Kostecka told WBJ. The Polish medical tourism market was worth approximately z∏.800 million in 2011, according to Medi-Tour, a medical tourism provider specializing in the Polish market.

The Ministry of Economy estimates the number of medical tourists visiting Poland to be between 250,000 and 300,000 a Cathy Liu year.

REHABILITATION|SPA&WELLNESS|CARDIAC SURGERY|ORTHOPAEDICS|DENTISTRY|PLASTIC SURGERY COMPREHENSIVE DIAGNOSTIC | OPHTHALMOLOGY | CARDIOLOGY | VASCULAR SURGERY | CCSVI

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Medical tourism

Patients are increasingly interested in combining treatment with holidays, relaxation and sightseeing tours Poland has been gaining ground in recent years as a destination country for medical tourism, attracting not only European patients but also those from far-flung corners of the world.

“Orthopedic, vascular and cardiothorasic surgery are the most popular procedures among foreign patients but lately there has been a growing interest in dentistry, with clients from as far as Australia and Turkey contacting EuroMedic to set dates for treatments,” said Anna Brz´ska-Mikoda, CEO of

EuroMedic Poland.

She admitted that “the crisis has had a negative effect on interest among foreign patients, but regular clients, mostly form Germany, are the ones that clinics can count on.”

However, it is no longer only the treatment foreign patients are interested in but also the entire experience of

clients it is even a prerequisite for choosing a particular clinic,” said Ada Kostrz-Kostecka, coordinator of the Polish tourism promotion government program at the European Center for Enterprise.

Surgery, sightseeing and spa This new trend has opened a new market niche which

“Patients … don’t want to wade through the websites of medical facilities, often poorly adjusted to foreigners’ needs” the trip. “An increasing number of clients expect a comprehensive service, not only the medical procedure but also various tourist attractions included in the trip. For some

tourist agencies are trying to fill. “Patients are looking for a comprehensive medical and logistics offer, they don’t want to wade through the websites of medical facilities, often

poorly adjusted to foreigners’ needs, or try to verify the reliability of the information they find on their own,” said Ms Brz´ska-Mikoda.

A typical medical tourist package includes medical treatment, such as a dental procedure or surgery, but also travel arrangements, stays in hotels, additional wellness and spa treatments, and even sightseeing tours if the patient’s treatment plan allows for it.

“If a patient goes to a spa for a couple of weeks, they may want to do some sightseeing at the weekend, for example. Or if a patient is looking for dental services in, say, Kraków, then they might be interested in spending a few days in a spa in Wieliczka,” Ms Kostrz-Kostecka explained.

Katarzyna Rybnik, Beata Socha

COURTESY OF THE POLISH TOURIST ORGANIZATION

Polish tourist agencies looking to woo patients with medical holiday packages

Spa treatments are increasingly popular with patients coming to Poland for medical procedures

Investing in Poland

2014 Investing in Poland project launched This year will mark the fifth edition of the annual Investing in Poland publication and the second competition for Investment of the Year

PIOTR GAMDZYK/WBJ

The 2014 edition of Warsaw Business Journal Group’s Investing in Poland project has been launched.

The project involves an annual publication scheduled to be launched at a conference on September 17, as well as an Investment of the Year competition and a gala which will be held in October.

The project is organized by Warsaw Business Journal Group in cooperation with the Polish Information and Foreign Investment Agency (PAIiIZ), PwC, Bank Pekao

and CBRE as well as eight chambers of commerce: the British, German, Spanish, French, Belgian, Dutch, Chinese and Indian.

The main aim of the project is to distinguish the most important foreign investments in Poland as well as show Poland’s potential to investors.

It is a particularly important goal this year, while the Polish economy muddles through its most difficult year since 2009, with GDP forecast to come in around 1 percent.

Warsaw Business Journal Group will be awarding the best foreign investment in Poland for the second time this year but, instead of one Investment of the Year award, three statuettes will be given to top investors: for a small investment, which is one involving up to 10 new jobs being created, medium-sized

Patryk Mikucki (right) and Aldona Zygmunt (center) from AstraZeneca, last year’s Investor of the Year, with WBJ ’s editorin-chief Andrew Kureth (left)

investments, which resulted in 11-99 new workplaces and large investments, which are those creating 100 jobs or more.

Each chamber will select up to three top investments, one per category, carried out by companies from their countries. The investment projects must have been completed between September 2012 and August 2013. The nominees will be presented at the conference in September.

Regions, cities and trends The conference will feature the official launch of the Investing in Poland annual publication, as well as two panel discussions. The first will focus on investing in Poland, in particular on what cities and regions are doing to attract investors, and the other on outsourcing as an investment trend.

In the weeks following the conference WBJ will present the profiles of each nominee and finally the top investment in each category will be selected by a jury. The three top investments, assessed on the amount invested, number of jobs created, innovativeness and sustainability will be awarded at the October gala.

Last year’s Investment of the Year award went to AstraZeneca Pharma Poland for its Research & Development HUB. The center, which runs clinical trials of pharmaceuticals in Poland, was nominated by the British Polish Chamber of Commerce. The other nominees included Spanish Estudio Lamela’s design of the Lublin City Stadium,

Finnish Itella’s financial center in Toruƒ, American Pittsburgh Glass Works’ windshield production facility in Âroda Âlàska and French Servier’s manufacturing plant and clinical trial center in Warsaw.

Investing in Poland 2014 is the fifth edition of the publication. It presents all the regions of Poland as well as major Polish cities and their potential for investors. It also provides information on all the special economic zones in Poland. Since 2011 the publication has included a special Trendbook section portraying the most prominent and interesting trends in the Polish economy.

In addition to the English ver-

sion, the publication will be translated into Chinese and Spanish, two of the top three most-spoken languages in the world. Altogether, 18,000 copies of the printed publication and 6,000 on CDs will be distributed by Polish embassies and consulates all over the world, the Network of Investors and Exporters Service Centers (COIE), 24 Polish Institutes around the world, as well as at 76 business events, including MIPIM, MAPIC, Expo Real and AIM in Dubai. The PDF version of the publication will also be available for download on WBJ.pl and various other websites.

Beata Socha

Three large office schemes were sold last week, including Ghelamco’s Nova building

Poles prefer to shop in local stores rather than in large shopping centers

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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

Nordea anchor tenant at Gdynia Waterfront SwedeCenter has secured Nordea Bank Polska as an anchor tenant for its Gdynia Waterfront offices in Tri-city on the Baltic coast. The bank will occupy 11,500 sqm of the scheme. The project, located on ul. Nabrze˝e Prezydenta in Gdynia, will deliver a total of 90,000 sqm of office, commercial and residential space.

Monnari at Galeria S∏oneczna Women’s clothing retailer Monnari will occupy 146 sqm of commercial space of the shopping center in Radom, central Poland.

Galeria S∏oneczna, the only modern retail project in the area, is visited by about 700,000 people a month. ●

In this issue Echo Tower . . . . . . . . . . . . . . . . .15 Galeria Dominikańska . . . . . . .15 Investment volumes . . . . . . . . .16 Willa Krasicki . . . . . . . . . . . . . . .16 Piano House . . . . . . . . . . . . . . . .16 Shopping habits . . . . . . . . . . . . .16 Major office deals . . . . . . . . . . .17 Prime rents . . . . . . . . . . . . . . . . .17

Echo Investment to build new tower in downtown Warsaw The 155-meter scheme will deliver 55,000 sqm of office space in Q1 2016 WSE-listed developer Echo Investment has announced it will build a new office project in Warsaw called Q22. The scheme will be erected at the intersection of Al. Jana Paw∏a II and ul. Grzybowska, on the site of the former Mercure hotel, which was demolished earlier this year.

Construction on the 39storey building will launch in September. The investor is currently in the process of selecting a general contractor.

The scheme, designed by

developed by prof. Stefan Kury∏owicz,” said Piotr Gromniak, president of the board at Echo Investment.

the Kury∏owicz & Associates architectural studio in cooperation with Buro Happold Polska, is expected to offer tenants a wide range of amenities, including a restaurant, a fitness center and bicycle parking. The building will also include a five-storey garage.

When completed in the first quarter of 2016, the Q22 tower will be the tallest and the largest project from the Kielce-based developer. The cost of the investment is estimated at some z∏.500 million.

“It is a unique project, not only because of its excellent location but also thanks to an unusual architectural design

Recycled materials According to the firm, all the materials acquired during the demolition of the Mercure hotel were recycled. “1,500 tons of steel and 25,000 tons of concrete aggregate were obtained in this way,” the company said in a press release. A company representative told Lokale Immobilia that most of the recycled materials were used for the construction of roads outside Warsaw.

Karolina Kowalska

COURTESY OF ECHO INVESTMENT

Auditing, tax, business and transaction advisor EY (formerly Ernst & Young) has leased an additional 1,150 sqm of office space in the Rondo 1 office building in Warsaw’s downtown and will now be occupying 12,000 sqm of office space in the 40storey, 66,000-sqm classA development. Owned by MGPA, Rondo 1 is located at the Rondo ONZ roundabout.

Office

Construction is set to launch in September

Retail

Galeria Dominikaƒska bought for €151.7 mln The Wroc∏aw shopping mall was acquired by Atrium European Real Estate A joint venture comprising the Otto Family and Deutsche EuroShop AG has sold Galeria Dominikaƒska to shopping center investor, manager and developer Atrium European Real Estate.

Cushman & Wakefield represented the buyer in the transaction.

Galeria Dominikaƒska, located on Pl. Dominikaƒski 3 in the center of Wroc∏aw, southern Poland, next to the city’s historic old town, comprises 32,900 sqm of GLA spread over three levels and across 102 units, as well as a gym leased to AM Fitness Club and approximately 1,250

sqm of office space.

The center is 100-percent leased. Retailers include Zara, Bershka, Pull & Bear, Stradivarius, Carrefour, Media Markt, Van Graaf, C&A and Reserved. The center was delivered in 2001 and refurbished in 2011.

The transaction will be financed with the Group’s existing cash resources. The acquisition requires approval from regulators.

“Galeria Dominikaƒska is an important acquisition for us, being a large, well-established and dominant shopping center which is in a prime location in one of the major cities of Poland, our most important market,” said Rachel Lavine, CEO of Atrium European Real Estate.

“The transaction allows us to start putting the proceeds

COURTESY OF CUSHMAN & WAKEFIELD

EY leases more space in Rondo 1

JULY 8-21, 2013, LI 18/26-27

Galeria Dominikaƒska will offer 32,900 sqm of GLA of our recent Eurobond placement to effective use while increasing Atrium’s weighting

to Poland, the CEE’s largest economy, to over 50 percent, and taking its exposure to A-

rated or above countries to above 75 percent,” Ms Lavine KEK added.

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

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LOKALE IMMOBILIA – REAL ESTATE

JULY 8-21, 2013

Economy

Piano House Investment volume in Poland topped out

hits €970 million in H1

tral Eastern European market this year; Galeria Dominikaƒska (€151.7 million, Wroc∏aw); Charter Hall portfolio (€174.5 million) in the retail sector or Le Palais (Warsaw) in the office sector.

KEK COURTESY OF ICON REAL ESTATE

Total real estate investment volumes in Poland for the first half of 2013 amounted to approximately €970 million across all commercial real estate sectors in Poland, according to a new report by advisory Jones Lang LaSalle.

Transaction volumes in H1 reached €611 million in the office market, €161 million in retail, €184 million in the industrial sector, and €14 million in the hotel industry. Of 2013’s preliminary investment volumes so far, the vast majority came from foreign investments.

“Taking into account the major transactions that were announced but are expected to be completed in the coming months and other deals yet to follow, we envisage that overall 2013 on the Polish commercial real estate market will prove to be strong and total volumes are likely to exceed €2.5 billion,” commented Agata Seku∏a, head of retail investment in

of these deals, yet to be finalized in the coming months of 2013, equates to approximately €800 million and takes into account transactions such as Silesia City Center (€412 million, Katowice), which is the largest transaction on the Cen-

Central Europe at Jones Lang LaSalle. “We see that the market is more diversified and investors are becoming more interested not only in prime office assets in Warsaw or retail properties in major Polish cities,” Ms Seku∏a added.

Major transactions that were finalized in the second quarter of the year include Ghelamco’s €120 million sale of its Senator office building in Warsaw to Union Investment and London & Cambridge

The development will offer 60 luxury apartments

“Total volumes for 2013 are likely to exceed €2.5 billion.”

Properties acquisition of Echo’s retail portfolio in Tarnów, Radom and Piotrków Trybunalski for around €67 million. In the industrial sector Segro acquired ˚eraƒ Park II for €43 million.

These figures exclude a few major deals that were signed in Q2 but whose completions are expected in Q3. Total volume

COURTESY OF APOLLO-RIDA POLSKA

The office market dominated, with some €611 million transacted

The sale of ˚eraƒ Park II was one of the biggest transactions in Poland in Q2 2013

Residential

The topping out ceremony for the Piano House residential development was held in midJune. The scheme, designed by the Grupa 5 Architekci studio, is located at the intersection of ul. Topiel and ul. Zaj´cza, in the capital’s PowiÊle neighborhood. It will deliver approximately 60 luxury apartments ranging from 31 sqm to over 300 sqm. The prices begin from z∏.13,000 per sqm. To date, 23 percent of the apartments have been sold.

Developer Icon Real Estate touts the convenient location

of Piano House, which will be built close to two planned subway stations and the Copernicus Science Centre. It is also situated within a 10-minute walk from the city center.

Established in 2008, Icon Real Estate is currently also building the Na Sowiƒskiego residential project in Warsaw’s Wola district, and is revitalizing two tenement houses on the capital’s ul. Ordynacka and ul. Poznaƒska. Planned developments include Villa Icon in Warsaw’s Mokotów district.

KEK

Retail

Willa Krasicki completed Europe still shops the

old-fashioned way

COURTESY OF JASI¡SKI KRUSZEWSKI ARCHITEKCI

Europeans – and Poles specifically – prefer to shop in their local stores rather than big retail schemes, a new report finds

Each apartment has a terrace overlooking the garden or the street

Developer Willa Krasicki II has delivered an upmarket residential project in Warsaw’s Mokotów district Developer Willa Krasicki II has completed its threestorey Willa Krasicki apartment building located on ul.

Krasickiego 10 in the Mokotów district of the Polish capital.

The project is surrounded by pre-war houses and tene-

ment buildings. It comprises seven apartments and an underground garage with 14 parking spaces.

The apartments, ranging from 70 to 300 sqm, cost from z∏.17,000 to z∏.25,000 per sqm. The price includes two parking spaces in an underground garage and a storage unit. Each apartment also has as a terrace overlooking the garden or the street. The neighborhood was originally developed in the early 1900s and features pre-war villas and tenement houses.

The building was designed by Jasiƒski Kruszewski Architekci architectural studio. “We wanted the design to exist in harmony with other townhouses on ul. Krasickiego, which are all surrounded by lush greenery and hidden behind trees,” the architects from the studio said.

Willa Krasicki II specializes in luxury boutique projects such as its Villa Ursus residential estate in the Mokotów district.

Karolina Kowalska

Most Europeans still prefer to visit local shops and town centers rather than buy products online or shop at out-of-town retail schemes, according to a new report by CBRE. The firm surveyed over 10,000 shoppers across Europe for the report, which reveals that while online retailing continues to grow in appeal, consumers are not inclined to drastically change their shopping habits – and Poland is no exception.

“In Europe online shops compliment in-store retailing, with Poland still a long way down the list of the most avid online shoppers,” said Agata Czarnecka, senior consultant at CBRE in Poland. “Sixteen percent of [Poles] buy [their] clothes and shoes on the internet, while for example in the UK, Germany or Sweden 70 or more percent do so,” she added.

However, online shopping in Poland is set for growth. “[A] full 25 percent of those surveyed in Poland say that in the future they want to do more of their shopping online,” Ms Czarnecka said.

“When buying from internet stores, 64 percent of European consumers prefer home delivery (in Poland that’s over 80 percent), but to 85 percent of Europeans it is also important to have access to a physical store to view, touch and try on the garments before finally buying online.”

Bricks and mortar still preferred Two-thirds of consumers said that the most important factors when choosing where to go shopping in the “bricks and mortar” world were the price of goods, cleanliness, security and convenient access, including parking.

Despite competition from online and out-of-town shopping, shopping centers and high streets in the city continue to be the preferred option for European consumers. The physical store still plays a key role in the new world of multichannel retailing.

When shopping for clothes, 78 percent of Europeans usually visit local shops and shopping centers in the city – at least once a month on average. In Western Europe the proportion of people who buy fashion goods in such facilities is 90 percent. For out-of-town shopping centers the average visit frequency is every six weeks.

In Poland, consumers also do most of their fashion shopping in local stores, which they visit at least once a month.

The average visit frequency for shopping centers, both on the outskirts and in city centers, is every five weeks.

“While many retailers are adapting to technological advances, consumers are telling us that they do not intend to radically change their shopping habits in the immediate future,” commented Peter Gold, head of crossborder EMEA retail at CBRE. “Consumers are far less interested in mobile technology and QR codes than the retail industry itself, so perhaps investment is better spent elsewhere,” Mr Gold concluded.

KEK

LOKALE IMMOBILIA – REAL ESTATE

JULY 8-21, 2013

Office

Office schemes change hands Developer Ghelamco has sold its Nova office building in Warsaw for €121 million to the CCPIII fund managed by Tristan Capital Partners. This is one of three major office transactions in Poland that have been closed recently.

Two of the deals involved office buildings located in the Polish capital, while the third one involved a property in Wroc∏aw, southern Poland.

The volume of office-project deals amounted to €611 million euro in Poland in the first half of 2013 and accounted for 63 percent of the total volume of real estate transactions in Poland, which came in at €970 million, according to a recent report by Jones Lang LaSalle. The total transaction volume is expected to exceed €2.5 billion for the entire year 2013 (see story, p. 16).

Tristan Capital Partners’ managing director Daniel

COURTESY OF GHELAMCO

The Polish office market saw three major deals close in early July

Nova in Warsaw was sold for €121 million Harris commented on the Nova purchase in a statement saying, “Poland has been a favorite market for the fund and we are delighted to have acquired this asset at an attractive price in one of Europe’s most prestigious and largest business districts located outside a city center. This takes the CCPIII fund closer to being fully invested.”

The grade-A Nova com-

plex located in Warsaw’s Mokotów district was completed in January 2012. It comprises two buildings with a total of 43,744 sqm GLA and over 1,000 parking spaces. It is 90 percent leased. Its tenants include Gothaer, BMW Group and LG Electronics.

CBRE, Dentons and cmT advised on the transaction.

A few days earlier, Polish real estate developer Echo

Investment signed the final agreement to sell the first phase of its Aquarius Business House project in Wroc∏aw for €41.9 million. The transaction comprised a plot of land with an office scheme currently under construction. In total 98 percent of the building has already been pre-leased. The buyer of the property is Spanish real estate investment fund Azora Europe. The Spanish company now has 12 Polish office projects in its portfolio.

They are located in Warsaw, Kraków and Wroc∏aw.

Another major transaction in the office segment involved a five-storey office scheme at ul. Grójecka 127 in the capital’s Ochota district. The property was purchased by State Forests National Holding from Aviva Investors. The state agency is planning to relocate its headquarters to the 7,400-sqm scheme, completed in 2002. The value of the transaction has not been disclosed.

Kamila Wajszczuk, Beata Socha

Office

COURTESY OF CBRE

Warsaw rises in office-cost ranking

Monthly prime rents in Warsaw remain at €27 per sqm

The Polish capital placed 61st in a ranking of the world’s most expensive office markets Warsaw was ranked 61st in the world in terms of price for office space according to the semi-annual Prime Office Occupancy Costs survey by CBRE Global Research and Consulting. The Polish capital has moved up three places since the previous survey, which reflects growing interest in the Polish capital as an important business location on the global map.

“Although Warsaw has been recognized by both investors and occupiers as a key destination in Central and

Eastern Europe, we are still regarded as a growing market that cannot be compared to such giants as London, Paris, Moscow or top Asian cities,” said Konrad Heidinger, a consultant in the research and consultancy department at CBRE Poland.

Out of the top 50 most expensive office markets worldwide, 21 were located in the Asia Pacific region, 18 were in EMEA and 11 in the Americas.

Central Hong Kong remained the highest-priced market for the third consecutive time, while five other Asian cities ranked in the top 10. London’s West End ranked as the world’s secondmost expensive market, and other markets from outside

Asia in the list’s top 10 included Moscow, London City and New York’s Manhattan.

Struggling economic conditions and cost-containment initiatives led to lower demand for office space and restrained pricing across many southern European markets including Madrid, Milan, Rome, Athens and a number of smaller markets, such as Valencia and Oporto.

Warsaw holding steady Warsaw’s prime rents have not changed since the previous report published six months ago and stood at €27 per sqm per month. Occupancy costs also remained unchanged in the Polish capital. Globally, occupancy costs rose by a scant 1.4 percent on a year-on-

year basis as modest growth in the Americas and Asia Pacific was partly offset by a slight decrease in recessionary Europe.

“While the pace of occupancy cost growth globally has slowed, the limited supply of prime space in key core business centers has fueled continuous upward movement of occupancy costs,” said Dr Raymond Torto, CBRE’s global chief economist.

“The most expensive office markets often attract the regional headquarters of large multinational firms that require a prime location in a prestigious building with access to major global and regional transit routes,” Mr Torto explained.

KEK

www.wbj.pl

17

18

THE LIST

www.wbj.pl

JULY 8-21, 2013

Travel & Leisure

Passenger Airlines Serving Poland Listed alphabetically

www.bookoflists.pl

Number of destinations

Number of destinations served directly from Poland

Przewodnik po polskim biznesie i gospodarce

Number of countries served worldwide

A guide to Polish business and industry

Major destinations

Adria Airways ul. Marsza∏kowska 28, 00-576 Warsaw 22 696-4520/22 696-4524 adria@globair.pl www.globairgroup.com/poland

22 696-8520

Warsaw; Katowice; Kraków; Gdaƒsk

WND

25

WND

Ljubljana; Sarajevo; Podgorica; Pristina; Tirana; Ohrid; Skopje

WND

✓

✓ ✓

-

Boeing; Canadair

Star Alliance

2006

˚aneta Szpakowska

Aegean Airlines Marsza∏kowska 28, 00-576 Warsaw 22 696-8522/22 696-8524 aegean@globair.pl www.globairgroup.com/poland

22 696-8522

Warsaw; Katowice; Kraków; Gdaƒsk

WND

60

WND

Athens; Tessalonika; Larnaca; Tel Aviv; Chania

Blue bonus

✓

✓ ✓

-

A319; A320; A321

Star Alliance

2013

˚aneta Szpakowska

Air Canada ul. Marsza∏kowska 28, 00-576 Warsaw 22 696-4521/22 696-4524 aircanada@globair.pl www.globairgroup.com/poland

22 696-4520

Warsaw; Katowice; Kraków; Poznaƒ; Gdaƒsk; Wroc∏aw

40

53

WND

Toronto; Montreal; Vancouver; Calgary; Ottawa

WND

-

✓ ✓

-

Boeing; Airbus

Star Alliance

2003

˚aneta Szpakowska

Flying Blue

✓

✓ ✓

✓ ✓

A380; B747-400; B777-300; A340-300; A330-200; A321; A320; A319; A318; A747-400 ERF; Fokker100; E145; BAe146/Avro RJ85; ATR72; BombardierCRJ100; CRJ700; ATR72; E190

Sky Team

1954

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

Phone numbers Airports served for reservations in Poland

Reservation

Loyalty programs

Self Telephone check-in Online

Cars Hotel

Aircraft used (A-Airbus; B-Boeing, E-Embraer)

Alliance

Year founded Top local executive in Poland Title

Country Manager

Country Manager

Country Manager

Air France SA ul. Nowy Âwiat 64, 00-357 Warsaw 22 556-6400/22 556-6415 mail.cto.waw@airfrance.fr www.airfrance.pl

22 556-6400

Warsaw

103(1)

243(1)

1

Paris, New York; Fort de France; Rio de Janeiro; Mexico City; Cancun

Alitalia Compagnia Aerea Italiana SA Oddzia∏ w Polsce ul. Nowy Âwiat 64, 00-357 Warsaw 22 556-6800/22 692-8735 alitalia.warszawa@alitalia.it www.alitalia.pl

801-107-700

Warsaw; Kraków

39

101

2

Roma; Buenos Aires; Catania; Cagliari; Barcelona

MilleMiglia; BlueBiz

✓

✓ ✓

✓ ✓

B777/200ER; A330/200; A321; A320; A319; E190; E175

Sky Team

1964

George Athanasiou

Austrian Airlines Al. Jana Paw∏a II 29, 00-867 Warsaw 22 520-3420 office.poland@austrian.com www.austrian.com

22 520-3420

Warsaw; Kraków

67

199

2

Vienna; Tokyo; Beijing; Bangkok; New York; Chicago

Miles&More; Partner Plus Benefit

✓

✓ ✓

✓ ✓

A321; A320; A319; B777; B767; B737; Fokker 100/70; Bombardier Q400

Star Alliance; IATA

1958

Bart Buyse

British Airways ul. Marsza∏kowska 76, 00-517 Warsaw 22 529-9000/22 628-6341 www.ba.com

22 529-9000

Warsaw

148

600

1

London

Executive Club

✓

✓ ✓

✓ ✓

B747; B777; B767; B757; B737; A319/320/321

Oneworld Alliance; Iberia; American Airlines; Japan Airlines

1959

Peter Duchek

China Airlines ul. Marsza∏kowska 28, 00-576 Warsaw 22 696-8520/22 696-8521 china-airlines@globair.pl www.globairgroup.com/poland

22 696-8520

Warsaw; Katowice; Kraków; Gdansk; Poznaƒ; Wroc∏aw

27

84

WND

Taipei; Denpasar; Bangkok; Jakarta; Kuala Lumpur; Hanoi; Hong Kong; Manila; Sydney; Brisbane

WND

✓

✓ ✓

-

Airbus; Boeing

Dynasty Flyer

2006

˚aneta Szpakowska

Deutsche Lufthansa SA Oddzia∏ w Polsce Al. Jana Paw∏a II 29, 00-867 Warsaw 22 338-1300/22 338-1301 info@dlh.de www.lufthansa.com

22 338-1300

Warsaw; Katowice; Kraków; Wroc∏aw; Poznaƒ; Gdaƒsk; Rzeszów

79

194

7

and More; Los Angeles; Nowy York; Miles Partner Plus Pekin; Tokyo; Frankfurt Benefit

✓

✓ ✓

✓ ✓

A319-100; A320-200; A3210100; A330200; A330-300; A340-300; A340-600; A380-800; B737-300; B737-500; B747- Star Alliance; IATA 400; B737-800; B747-8

1971

Finnair SA Al. Niepodleg∏oÊci 69, 02-626 Warsaw 22 100-3224 finnair@finnair.pl www.finnair.com

22 100-3224

Warsaw; Kraków

31

68

1

Finnair Plus; Beijing; Shanghai; Hong Finnair Corporate Kong; Bangkok Programme

✓

✓ ✓

✓ ✓

A340; A330; A321; A320; A319; E170; E190

Oneworld

1973

KLM SA Poland - Oddzia∏ w Polsce ul. Nowy Âwiat 64, 00-357 Warsaw 22 556-6444/22 556-6415 mail.cto.waw@airfrance.fr www.klm.pl

22 556-6444

Warsaw

103(1)

243(1)

1

Amsterdam; New York; Hong Kong; Edinburgh; Cape Town; Mexico City; Bangkok; Paris

Flying Blue

✓

✓ ✓

✓ ✓

B747-400 PAX; B747-400 Combi; B747400 ER Freigter; B747-400 BC Freighter; B77-300 ER; B777-200; B767-300 ER; A330-200

Sky Team

1956

Polskie Linie Lotnicze LOT SA ul. 17 Stycznia 39, 00-906 Warsaw 22 606-7919 media@lot.pl www.lot.pl

801-703-703

Warsaw; Gdaƒsk; Szczecin; Poznaƒ; Wroc∏aw; Katowice; Rzeszów; Bydgoszcz

34

56

56

Chicago; New York; Toronto; Beijing; London; Amsterdam

Miles & More

✓

✓ ✓

✓ ✓

B787 Dreamliner; B737; E170, 175, 195; IATA; Star Alliance Dash Q400

1929

Sebastian Mikosz

Scandinavian Airlines System DenmarkNorway-Sweden Konsorcjum Oddzia∏ w Polsce Al. Jana Paw∏a II 29, 00-867 Warsaw 22 850-0500/22 850-0438 reservation.waw@sas.dk, www.flysas.pl

22 850-0500

Warsaw; Gdaƒsk; Poznaƒ; Wroc∏aw; ¸ódê

28

136

2

Copenhagen; Stockholm; Eurobonus; SAS Oslo; Goeteborg; Credits New York

✓

✓ ✓

-

A340-300; A330-300; A321-200; A319100; MD-81/82/87; B737-400; B737500; B737-600; B737-700; B737-800; CRJ900 NG

1956

Wanda Brociek

Swiss International Air Lines SA Oddzia∏ w Polsce Al. Jana Paw∏a II 29, 00-867 Warsaw 22 520-3456/22 520-3486 info.poland@swiss.com www.swiss.com

22 520-3456

Warsaw

WND

WND

WND

Zurich; New York; Bangkok; Dubai; Miami

Miles and More; Partner Plus Benefit

✓

✓ ✓

✓ ✓

2002

Bart Buyse

Turk Hava Yollari SA - Oddzia∏ w Polsce (Turkish Airlines) Al. Jerozolimskie 123A, 02-017 Warsaw 22 529-7700/22 529-7710 wawsales@thy.com www.turkishairlines.com

22 650-3512

Warsaw

100

228

1

Beijing; Bangkok; Dehli; Almaty; Johannesburg

Miles & Smiles

✓

✓ ✓

-

2000

Mete Akandere

Notes: WND = Would Not Disclose. Research for The List was conducted in May 2013. Companies not responding to our survey are not listed.

Footnotes: (1) AIR France KLM Group.

Star Alliance

Avro RJ100; A319/320/321; A330-300; Star Alliance; IATA A340-300

A340; A320; A310; B737

IATA; Star Alliance

David Garcia Head of Representation

Country Manager

Director

Director CEE

Country Manager

Bart Buyse General Director

Juhani Nuoramo CEE Sales Director

David Garcia Head of Representation

President

General Director

Director

Director

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

MARKETS

JULY 8-21, 2013

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

14,988.37 (Jul 3 close)

S&P500

3,443.67 (Jul 3 close)

0.52% (for the week)

FTSE100

1,615.41 (Jul 3 close)

2.00% (for the week)

DAX

6,375.52 (Jul 5 close)

0.76% (for the week)

2.57% (for the week)

Week of uncertainty

NIKKEI 7,806.00 (Jul 5 close)

14,309.97 (Jul 5 close)

-1.93% (for the week)

4.70% (for the week)

CHANGE: 11.75% (year to July 3)

CHANGE: 10.65% (year to July 3)

CHANGE: 10.46% (year to July 3)

CHANGE: 5.78% (year to July 5)

CHANGE: 0.35% (year to July 5)

CHANGE: 33.89% (year to July 5)

52-week high: 15,542.40

52-week high: 3,532.04

52-week high: 1,687.18

52-week high: 6,875.60

52-week high: 8,557.86

52-week high: 15,942.60

52-week low: 12,471.50

52-week low: 2,810.80

52-week low: 1,325.41

52-week low: 5,478.00

52-week low: 6,324.53

52-week low: 8,328.02

Omar Arnaout Noble Securities SA The first week of July was one full of uncertainty, which brought increases to the Warsaw Stock Exchange.

It was a significant week, with investors anticipating the ADP report on Wednesday and more importantly the non-farm employment report on Friday. Both macroeconomic readings brought results that were better than expected, thus bringing higher optimism to the market.

It also has to be mentioned that Poland’s Monetary Policy Council decreased interest rates by 25 basis points. However, the market failed to react strongly to this news, since it was anticipated by investors.

From a technical point of view the Warsaw Stock Exchange’s blue-chip WIG20 index has formed a

Major indices WIG

45,110.89 (July 5 close)

WIG20

2,253.49 (July 5 close)

05.07

04.07

03.07

02.07

01.07

28.06

27.06

26.06

25.06

24.06

21.06

20.06

19.06

05.07

04.07

03.07

02.07

01.07

28.06

27.06

26.06

25.06

2,100

24.06

43,000

21.06

2,200

20.06

44,200

19.06

2,300

18.06

45,400

17.06

2,400

14.06

46,600

13.06

2,500

12.06

47,800

11.06

2,600

10.06

49,000

18.06

52-week low: 2,101.10

17.06

Change year to July 5: -14.19%

14.06

52-week low: 38,982.82

13.06

52-week high: 2,628.36

Change year to July 5: -6.23%

12.06

Change for the week: 0.35%

11.06

52-week high: 48,495.01

10.06

Change for the week: 0.81%

Top 5 BIOTON BYTOM COGNOR PETROLINV KINOPOL

Closing 0.04 0.36 1.35 0.63 18.80

% change (week) 52-week high 33.33 0.10 20.00 0.55 19.47 3.60 18.87 2.58 17.50 19.97

52-week low 0.03 0.25 0.57 0.36 6.63

Top 5 PGNIG PZU BOGDANKA LOTOS KGHM

Closing 6.25 426.95 105.00 37.28 125.00

% change (week) 7.76 4.21 3.96 3.84 3.31

52-week high 6.50 460.00 143.00 45.45 194.80

52-week low 3.78 304.99 97.20 24.02 109.60

Bottom 5 ALTERCO CALATRAVA MEDIATEL NOKAUT TRITON

Closing 0.73 0.02 0.85 2.80 0.98

% change (week) -33.64 -33.33 -28.57 -26.70 -22.22

52-week low 0.66 0.02 0.80 2.80 0.57

Bottom 5 PEKAO HANDLOWY PKOBP GTC PKNORLEN

Closing 143.30 89.00 34.50 8.04 45.85

% change (week) -4.47 -4.30 -3.09 -1.95 -1.61

52-week high 164.44 97.45 38.50 10.25 57.40

52-week low 126.53 69.44 30.50 5.77 34.96

52-week high 7.68 0.53 1.98 8.79 2.35

sWIG80

Little hope for stronger z∏oty

11,822.63 (July 5 close)

WIG-Banki

6,438.37 (July 5 close)

05.07

04.07

03.07

02.07

01.07

28.06

27.06

26.06

25.06

24.06

21.06

20.06

19.06

05.07

04.07

03.07

02.07

01.07

28.06

27.06

26.06

25.06

24.06

6,400

21.06

297.0

20.06

6,520

19.06

299.2

18.06

6,640

17.06

301.4

14.06

6,760

13.06

303.6

12.06

6,880

11.06

305.8

10.06

7,000

18.06

52-week low: 5,479.94

17.06

Change year to July 5: -4.24%

14.06

52-week low: 297.90

13.06

52-week high: 6,987.45

Change year to July 5: -10.08%

12.06

Change for the week: -2.43%

11.06

52-week high: 359.60

10.06

Change for the week: -0.85%

308.0

Adam Narczewski X-Trade Brokers DM SA

05.07

04.07

03.07

02.07

01.07

28.06

27.06

26.06

25.06

24.06

21.06

52-week low: 9,242.22

20.06

18.06

17.06

05.07

04.07

03.07

02.07

298.73 (July 5 close)

52-week high: 12,044.12

SOURCE: WSE

NewConnect

01.07

28.06

27.06

26.06

25.06

11,600

24.06

2,700

21.06

11,700

20.06

2,760

19.06

11,800

18.06

2,820

17.06

11,900

14.06

2,880

13.06

12,000

12.06

2,940

11.06

12,100

10.06

3,000

14.06

Change year to July 5: 12.26%

13.06

52-week low: 2,211.09

12.06

Change year to July 5: 9.92%

11.06

Change for the week: 0.91%

10.06

52-week high: 2,979.55

19.06

2,823.50 (July 5 close)

Change for the week: 1.68%

zig-zag corrective movement which can be observed on the charts’ weekly interval, and is currently found between the support level of 2,066 and the resistance level of 2,245. A breakout from either of these levels will be a strong signal, showing investors the shortterm trend plans for the market.

During the week an interesting stock for investors was surely PGNiG, which has already covered over 70 percent of the drop that was initiated at the end of May, rising from the level of z∏.5.77 to as high as z∏.6.25.

On the other hand, investors were unhappy with the performance of Citi Handlowy (Citibank’s Polish unit), which reached as high as z∏.94.35, only to drop later to near z∏.88. ●

Currency report

Other indices mWIG40

19

The main driver of currency market movements during the last couple of weeks were central banks’ monetary policy decisions and statements.

Ben Bernanke’s words that the Fed will start reducing the quantitative easing (QE) program are helping the US dollar. Mario Draghi stated we should expect low interest rates for an “extended period of time.”

The euro, which was already under pressure, continued to depreciate, reaching $1.2880 by the end of the past week. The other major currency pair, the GBP/USD, collapsed to levels below $1.50.

In Poland, the Monetary Policy Council (RPP) cut interest rates as expected by 25 basis points to 2.50 percent, the lowest level in history. Marek Belka, chairman of

the RPP, signaled that the cut marked the end of the easing cycle, but I would not exclude one more in the upcoming months.

The EUR/PLN, which had traded in the z∏.4.30-4.34 range for the previous couple of weeks, reacted to what happened on the EUR/USD market. It broke through support levels, reaching z∏.4.28. Surprisingly, the more volatile and reactive USD/PLN pair remained in the z∏.3.30-z∏.3.34 range. In the upcoming weeks I expect better macroeconomic data from the US, which could confirm the Fed’s decision to reduce QE. If that happens, we would observe an outflow of capital from emerging markets and it will be extremely hard for the z∏oty to appreciate under such a scenario. ●

currency rates 3.3242 05.07

SOURCE: NBP

3.3358 04.07

3.3619

3.3301 02.07

03.07

3.3351 01.07

3.3527 3.2

28.06

05.07 0.1000

0.1002

0.1008 03.07

100JPY-PLN

3.4

04.07

0.1005 02.07

01.07

0.1013 28.06

3.5048

3.4682 05.07

0.1000

0.1010

RUB-PLN

0.1015

04.07

3.5288 03.07

3.5078

3.5027 02.07

01.07

3.4

28.06

4.9848 05.07

5.0699

3.5

3.5125

CHF-PLN

3.6

04.07

5.1081 03.07

5.0604

5.0493 02.07

01.07

4.90

28.06

3.3245 05.07

3.3246

5.05

5.0581

GBP-PLN

5.20

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20

SPORTS

www.wbj.pl

JULY 8-21, 2013

Interview

American football going global WBJ talks with former NFL quarterback Ron Jaworski about how he sees the progress Poland’s American football league has made, the level of play, and how to successfully turn American football into a business

Andrew Kureth: You’ve had plenty of experience running a football team as a business.

How would you market American football to a skeptical audience such as Poles, who know little about the sport?

Ron Jaworski: They have to see it. When there are 25,000 people in the stands and they see American football, people will fall in love with the game.

It’s physical, it’s fast, there’s plenty of scoring. It’s almost like when soccer was coming to the United States, people would say, “It’s too low-scoring, it’s too slow-paced.” And now it’s becoming more popular. It takes time.

I think when Poles see it, when they see the action, the fast-paced nature of the game, they will begin to enjoy it.

Now, it can be a little bit difficult to understand, but once people understand they all become experts (laughs).

Once people see it, they will really understand why people in America are so passionate about football. And football will become a global sport – maybe not in my lifetime, but somewhere down the road. [American] football, not “soccer football” will be the worldwide sport.

How do you think the league should go about improving the quality of play?

Number one, you have to have coaches. The coaches are teachers. And you need coaches to teach the game properly.

Whether it’s the NFL, college football, or lower levels, the teams that are normally the most successful are the ones where the coaches are great

teachers. So, if you apply that same philosophy to coming to Poland, you need good teachers – coaches are teachers.

Second, you have to develop feeder systems. The key to the NFL is the collegiate feeder system. The key to the collegiate feeder system are junior colleges and high schools, and for high schools it’s middle schools and little leagues. So there’s a continual feeder system that trains these athletes and teaches these athletes how to play football. That’s what has to be developed in Poland.

How do you see the progress of the league so far?

I think what has been done here has been a monumental improvement. I’ll give you an example of what I’m talking about. Two years ago, we had this wacky idea of doing football in India. They don’t know football rules, they couldn’t get down into a three-point stance, I mean literally these were guys who knew nothing about football. Nine months later we had scrimmages of 11on-11. You can go on the web now and have a look at it. It looks like a good state championship game in Illinois or Ohio. It’s good high school football.

We taught 12,000 players football in India. We sent over coaches like Doug Plank, a former NFL player with the Bears. Doug was the head coach for the Philadelphia Soul and he coached for the New York Jets and for Ohio State. You know, he spent six weeks teaching and training and coaching these players, so a short period of time – and it was amazing how fast they learned the game. So, that’s where the teaching comes in, the coach comes in. And all of a sudden the caliber of play elevates.

The Polish league is currently semi-professional, with most of the players just participating for fun, and a few players on each team, usually Americans, paid to play. Should the PLFA work towards becoming a wholly professional league?

Yes. Because what will happen is some teams will do well, from a business standpoint, and they’ll buy the best players and you lose the competitive edge to the game.

That is happening to a degree already, with the top four

COURTESY OF MARCIN FIJA¸KOWSKI, MAFFOTO.PL

The Polish American Football League (PLFA) holds its eighth championship, SuperFina∏ VIII, on July 14 at Warsaw’s National Stadium.

For the event last year former NFL quarterback Ron “Jaws” Jaworski, known in his playing days as “the Polish Rifle” due to his Polish heritage, attended as a special guest.

Jaws, currently an NFL analyst for American sports television network ESPN and one of the owners of indoor American football team the Philadelphia Soul, knows plenty about the sport. Here, he tells WBJ about what the league needs to do to grow, how to deal with safety issues and whether the sport can succeed globally.

is violence.

However, that being said, I also think that the technology now is so much better, the coaching is so much better, the training is so much better. I think you’ll see those things being managed. I had 32 concussions in my career, but medically, we’re light years ahead of where we were when I played. Each year there are incredible advances in sports technology, in sports training, in the medical field. Our doctors are better, training staffs are better and the rules are better. Guys don’t go back into the game until they’re checked by the doctor. It’s a rule.

Ron “Jaws” Jaworski teams able to attract the best talent.

The issue the league will have down the road is: How do you keep that competitive balance equal for all the teams? But clearly, if you want to attract the best players you have to compensate them. I think you’ll see guys wanting to come to Poland to play, guys that are playing the Arena football league or Canadian football league. The player pool is overflowing. For the Philadelphia Soul we do tryouts. Four hundred guys show up off the street to try out. I mean, players are not the problem, but finding good ones is another thing.

One of the major issues in any football league is health problems. How do you feel about the current state of health care for NFL players today and how has it changed since your playing days?

It’s an issue that continues to be debated every single day.

Football is a physical game.

When you go into the game you know there are going to be injuries. There’s a warrior mentality. It’s a badge of honor. There’s a toughness part of it and you don’t play unless you are tough, you’re competitive and you can withstand taking a beating.

It truly is a badge of honor

to play football. I don’t care if you’re 10 years old, it’s a tough game to play. Now, you are also well aware that there are potential injuries. You know, the NFL is being inundated with lawsuits about concussions and no one has the answers yet. The good thing is the technology in the medical fields are incredible. They are now finding answers.

Do you think that the league is doing enough?

I think they are now. I think [NFL commissioner] Roger Goodell has done a tremendous job of focusing on concussions and focusing on injuries, focusing on former players. And I think the league office gets a lot of the blame but also, I have to blame our players association.

I don’t think [the player’s association] has done enough.

I think because of the money in the NFL game more should be done to protect the players.

I think the equipment manufacturers are doing a great job: helmets are better, equipment is better, technology is better. Everything is better. But you are never going to get away from the human body. Knees only bend one way, hits to the head cause trauma. But it’s not only football. Watch soccer kids,

they’re getting head trauma.

Watch a hockey game. It’s not only a football problem. The good lord gave us each just one body. Joints only go one way. Head trauma? I don’t care if you walk into a door or you get hit by a tackler, there’s going to be a brain rattling inside your skull.

But it’s particularly a problem for American football. The US Consumer Product Safety Commission found that in terms of injuries per participant, football was the worst in terms of the injury-to-participation rate – 5 percent of players are injured, and head injuries were the number-one type of injury reported. So that is one of the obstacles for the sport here in Poland. Parents are afraid to let their kids get involved. Aren’t they right to be worried?

It’s absolutely troubling and every parent is worried about the health of their kids. That being said, you could be playing hockey, you could be in gymnastics, you could be playing field hockey, you could be playing lacrosse, there is always that chance of injury.

You are playing competitive sports with athletic people and injuries are going to be a part of it. And I’m not brushing aside the issue of football, because the basis of the game

A lot of players complain about the rule changes.

They’re idiots then, I’ll tell you that. And it always goes back to: “They’re ruining to the game, it’s violent, we all get it.”

But you know what? When you lead with the crown of your head and go paralyze yourself, that’s not the way to do it. People like the violence of the game, the gladiator approach to it, but I still think that what you have to understand is that these are human beings playing the game. You have to play by the rules and the rules need to be changed now that we have more knowledge of head trauma and all the injuries that have been caused.

The NFL holds games in London each year, and it has been a successful initiative – this year there will be two games held there. There has been some talk of establishing a team in Europe. What do you think the timeline could be for something like that?

It would be purely speculation, I have no inside information.

But I know a lot of people in the league office and I’ve talked to a lot of people and there is no question the NFL is now focused on global expansion. I think you’ll have teams in China or in Europe, so there can truly be a world Super Bowl.

There are incredibly talented athletes around the world.

The US doesn’t have a monopoly on talent. A lot of athletes around the world have not been introduced to the game as you’re seeing here, but there is no reason why there couldn’t be a team in Warsaw, Kraków, London, Barcelona, Beijing, or Sri Lanka. It’s a good business as well. Sometimes we tend to forget that for the league to flourish and be successful it has to be a good business as well – and the NFL model is clearly very successful. ●

SPORTS

JULY 8-21, 2013

Tennis

21

www.wbj.pl

American football

Poles make history Eagles, Giants to face off in PLFA championship at Wimbledon

Despite losing their semifinal games, Polish tennis players can be happy with their showing There were Poles in both the men’s and women’s semifinals at Wimbledon this year, but neither was able to move forward into the finals.

On July 4, Polish tennis star Agnieszka Radwaƒska’s hopes of winning Wimbledon this year after making it to the finals last year were dashed, as the fourth-seeded Pole lost in the semifinals to Germany’s Sabine Lisicki.

Their match was a thriller, with Ms Lisicki coming from 3-0

down in the last set to win the match 6-4, 2-6, 9-7. The German dominated the first set while the Pole took control in the second.

In the third set, Ms Lisicki came on strong after being down 3-0.

Still, Ms Radwaƒska had two chances later on to win, but couldn’t capitalize.

“It was unbelievable, the last few games were so exciting,” Ms Lisicki told BBC Sport. “Agnieszka played so well, it was a battle and I’m so happy to have won it.”

While few were surprised to see Ms Radwaƒska playing in the semifinal, the advance of 22-year-old Jerzy Janowicz to the semifinal phase took most tennis fans by surprise.

The Pole had his best

Grand Slam event ever, losing to the UK’s Andy Murray in the battle for the final (7-6, 46, 4-6, 3-6) on July 5. Though Mr Janowicz won the first set, Mr Murray proved too powerful. Still, the Pole will be happy with his performance, since no other male Pole tennis player had ever reached the semifinal stage in a Grand Slam tournament. Prior to this year’s Wimbledon, the best showing by a Pole came in 1980, when Wojciech Fibak played in three Grand Slam quarterfinals.

Pole ¸ukasz Kubot also advanced to this year’s Wimbledon quarterfinals, where he lost to Mr Janowicz.

Andrew Kureth, Jacek Ciesnowski

Soccer

YouTube sensation A young man landed himself a tryout at Wis∏a Kraków after showing the team a fake YouTube video Journalists covering soccer tend to love the transfer season, since the news and rumors of players changing teams fill the void left once the games end.

Fans enjoy it too – they get to speculate on who could play for their clubs in the upcoming season, and drool over the big names rumored to be joining their teams.

It’s a slightly different story for the clubs themselves, who receive dozens of offers from agents and players from all over the world each day. It becomes especially difficult when that club doesn’t have much money to spend on new players and has to look carefully to find an unknown player who won’t ask for much but will provide some quality in return.

This summer Wis∏a Kraków is a case in point. The club’s

budget is tiny, allowing the team to sign only the odd, unheralded free agent. Probably then, the team’s management was happy to receive a message from an agent with an offer that seemed too good to be true: a promising Romanian midfielder with a number of games in the country’s youth national teams. His name, Sorin Oproiescu, didn’t ring any bells, but with that resume and a few exciting YouTube videos showing him in action, Wis∏a’s managers thought they’d take a chance.

What they didn’t seem to realize was that the player in the videos sometimes appears short, other times tall; his jerseys change color frequently; and judging by the stadium banners, the games were taking place in Serbia, not Romania.

The Kraków side’s fans were more thorough in their research. They quickly realized that the videos don’t portray Mr Oproiescu at all, but rather sev-

eral different Serbian players.

The fans looked up Romanian soccer journalists and asked them about the player – but none had heard of the mysterious Mr Oproiescu before. Had Mr Oproiescu ever even played professionally?

Wis∏a team management didn’t budge, insisting that since an agent had recommended Mr Oproiescu, the team would test him despite all the evidence pointing to a hoax.

Wis∏a head coach Franciszek Smuda let Mr Oproiescu play in one of the pre-season games. He played for 40 minutes, and one of the spectators posted a compilation of the midfielder’s play so that everyone could finally see what the real Mr Oproiescu is capable of on the field. In the five-minute video, he can be seen running clumsily from one side of the pitch to the other without touching the ball a single time.

Immediately after the match, the player was sent home.

Jacek Ciesnowski

The top four teams in the Polish American Football League’s (PLFA) Topliga division met in semifinal match-ups at the end of June, and produced two exciting games. In the end, both visiting teams won, with the Warsaw Eagles beating Devils Wroc∏aw 21-6 and Giants Wroc∏aw beating last year’s champion Seahawks Gdynia 35-12. The Eagles and Giants will now face each other July 14 at the National Stadium in Warsaw in the Trawnik Producent PLFA SuperFina∏ VIII. In the Warsaw-Wroc∏aw semifinal, the Eagles defense had little problem bottling up the Devils offense, as Wroc∏aw

came in without its best running back, Xavier Glenn, as well as its two top receivers, Dawid Tarczyƒski and Grzegorz Mazur. Eagles quarterback Shane Gimzo played one of his best games of the season.

In the Wroc∏aw-Gdynia matchup, the Giants’ Jamal Schulters, who tore up the Topliga during the regular season with 26 rushing touchdowns, scored all five of Wroc∏aw’s touchdowns.

With the Seahawks out, fans won’t be treated to a rematch of last year’s SuperFina∏, but Warsaw will have an opportunity to make up for last year’s 52-37 loss to Gdynia. The Warsaw Eagles this year were 7-3 in the regular season, splitting their games with the Seahawks and losing once each to the Giants and Devils. The Giants were 8-2, splitting their games with the Devils and losing once to the

Seahawks. The game between the Giants and Eagles this year was a particularly close affair. The Giants came out winners 9-7.

The final will pit two of the league’s most electric players – Eagles kick returner and wide receiver Clarence Anderson and the Giants’ Schulters – against each other.

Warsaw advances to the title game for the fourth time in the eight-year history of the Polish American Football League.

The Giants, who played in the Czech league last year, are technically making their PLFA debut this year. However, the team is mainly composed of players from the now-defunct Crew Wroc∏aw, which had previously played in four PLFA championships. Both teams have won two PLFA titles, but have never before faced each other in the final game.

AK, AZ

COURTESY OF MARCIN FIJA¸KOWSKI/WARSAW EAGLES

Agnieszka Radwaƒska

SHUTTERSTOCK

Warsaw and Wroc∏aw won their respective semifinal games, and will meet in Warsaw’s National Stadium on July 14

Eagles quarterback Shane Gimzo scores a touchdown against Devils Wroc∏aw in their semifinal game

Women’s soccer

Poland wins U-17 European championship The Polish women beat Sweden 1-0 for their first European gold Poland’s under-17 women’s soccer team celebrated unexpected success in Nyon, Switzerland at the end of June when it won the UEFA European Women’s Under-17 Championship. In a four-team playoff, the Poles emerged victorious, having beat Belgium 31 in the semifinals and Sweden 1-0 in the final.

The heroine of the final game was Ewelina Kamczyk.

The striker scored the only goal of the match at the 15-minute mark. The Swedes spent the

rest of the match attempting to equalize, but Polish goalkeeper Anna Okulewicz came up big several times to help Poland maintain its lead.

The team’s biggest star, Ewa Pajor, was one of the best players of the tournament. In Poland Ms Pajor is known as “the female Lionel Messi,” and she showed off her skills during both of the games, dribbling around opposition defenders with ease and scoring one of the Polish team’s three goals against Belgium.

The European championship was the first for Poland’s ladies, and the first overall since 2001, when the country’s under-

18 men’s team won the gold.

But the tournament was not only historic for Poland. Three out of the four teams playing were participating in the tournament for the first time: Poland, Sweden and Belgium.

Spain, the last of the four teams, had played in the tournament previously.

The tournament was also the last to be held in Switzerland (all six editions so far have been held there) with the fourteam format. Next year, the championship will be held in England and the number of teams competing will increase to eight.

Jacek Ciesnowski

22

LIFESTYLE

www.wbj.pl

Music festival

JULY 8-21, 2013

Film festival

Blast from the past Broaden your horizons

The Jarocin festival has been synonymous with punk culture since the 1980s between youth and the police.

In 1994, after several riots, the event was suspended.

The festival’s new era started in 2005 when organizers first began inviting the biggest Polish acts, later on adding a few international bands to the bill. Jarocin eventually became a staple festival in Poland’s music landscape once again.

Now the event is in its fourth decade. This year, it will mix some of the bands who played at the site in the 1980s

(D˝em, Izrael, Moskwa) with some better-known foreign bands. Highlights include Brazilian/US thrashers Soulfy, legendary punk icons the Misfits and another iconic band, Suicidal Tendencies and their punk/metal hybrid sound.

These, among dozens of other acts, should bring joy to music fans, both old and young.

Jacek Ciesnowski

Tickets for a single day cost z∏.85. Three-day passes are z∏.130

Since its inception in 2001, the TMobile New Horizons film festival has become one of the biggest in Poland and is regarded as one of the most important film events in Central Europe. The festival presents original movies from Poland and all over the world that explore new horizons in storytelling, as well as in visual and artistic expression.

The New Horizons international competition consists of 14 original Polish premieres exhibiting the avant-garde nature of the festival. The winners of the Grand Prix, the Audience Award and the FIPRESCI Prize are guaranteed distribution throughout Poland. The highest prize, the Grand Prix, is worth €20,000 on top of the distribution COURTESY OF T-MOBILE NEW HORIZONS FESTIVAL

In the 1980s, the Jarocin festival was one of the few places that provided some freedom in the communist era. Young people could enjoy music that was not necessarily in line with the political views of the ruling party, and which couldn’t be heard anywhere else. Punk rock was king there, but many famous heavy metal, blues and reggae bands got their first exposure there as well. It was also the birthplace of the “Polish Coldwave.”

The officials tolerated the event, thinking that it was a good outlet for restless Polish youth, thus creating a so-called “safety outlet” for them, where they could have their fun, release all their anger, and then go home happy and exhausted. That didn’t stop the authorities from keeping a close eye on what was happening there, though. Recent findings show that both the musicians and the audience were under close surveillance.

After communism ended, the festival tried to survive but failed, mostly because it became a battleground

T-Mobile New Horizons 18-28 July Wroc∏aw

KRZYSZTOF KOSTRUBIEC / SHUTTERSTOCK.COM

Jarocin Festival July 19-21 Jarocin

deal. There will also be an international art competition, featuring documentaries mixing visual art and cinema, Polish and European shortfilm competitions and many more.

Besides the film competitions, the festival will also include a wide range of films awarded at international fes-

tivals, including documentary films and retrospectives.

This section of the festival consists of films from the French Neobaroque era, new Russian cinema, Swiss musical documentaries, along with a selection of post-modern sci-fi cinema. The audience will be treated to many award-winning movies, including titles that won prizes at the Cannes and Berlin film festivals. In total, over 300 movies will be shown in Wroc∏aw.

The film portion of the festival will be accompanied by a series of concerts, including some well-known names. Mike Patton of Faith No More fame will play with one of his many bands – Tomahawk, and Roni Size, one of the pioneers of the underground dance music, will have a set as well.

Cathy Liu

For more information log on to: nowehoryzonty.pl

LAST WORD

JULY 8-21, 2013

www.wbj.pl

23

Tech Eye

The SmartWatch 2 Not unless you’d suffered a serious, jazzercise-related childhood trauma.

But we digress. Let’s move along and look at a couple of the spiffy smart watches which are now appearing on the market.

The SmartWatch 2 from Sony is, as its name implies, the Japanese firm’s second-gen smartwatch product. Sony calls it “a multi-functional message notification device, Android app interface and music remote, all in a sleek and water-resistant design.”

Also, it’s a watch.

The SmartWatch 2 functions as a second screen for an Android smartphone when the two devices are connected, and otherwise as a standalone digital watch. It has a touchscreen and, according to Sony, a whole bunch of fun superlatives can be used to describe the device: the world’s first smartwatch with near-field communication (think simplified wi-fi), the most versatile smartwatch, the smartwatch with the most apps, and the smartwatch with the longest battery life.

Whether any of that will still be accurate this autumn (when the SmartWatch 2 is expected to hit the streets) is anyone’s guess. No pricing info is available as of yet.

Then there’s the Multi-Sport GPS Watch from car-navigation specialists TomTom. This device has a narrower (and probably skinnier) target demographic than Sony’s SmartWatch 2: people who are into sport. Particularly running.

Among the various features are: an indoor tracker, which measures pace and distance even on treadmills; “QuickGPSFix,” which uses special satellite technology to quickly find the wearer’s precise location; compatibility with popular

sites and platforms for analyzing and sharing running stats; a Bluetooth heart-rate monitor; and a built-in altimeter. Battery life (in GPS mode) will last 10 hours.

TomTom also makes the rather limp boast that its device offers “the industry’s first one-button control to make it easier for users to access the information needed to stay motivated and achieve their goals.”

Because a two-button control scheme would totally kill the motivation of those people self-disci-

plined enough to exercise regularly, right?

That bit of silliness aside, the Multi-Sport GPS Watch looks pretty solid. It will be released in the US this month at a $199.99 price point (international pricing and availability as yet unknown).

The only real concern Techeye has about this watch is that, with its fitness-focus, it might end up in the hands ... well, on the wrists ... of jazzercisers. This is definitely not a gadget we’ll be giving our folks. ●

M MTO F TO SY O RTE COU

One day, when Techeye was but a wee lad, we walked in on our parents doing something so shocking, so traumatizing that we peed on the rug and forgot our name for a week.

They were jazzercising. Monstrously.

If jazzercise doesn’t sound horrific to you, try this: go to YouTube and search for “Shape Up With Jazzercise.” Choose the first option, the twominute video with “Carnage” in the title, and watch it (at least until the “I just hear them squealing with delight” part).

Now imagine this same brand of be-spandexed atrocity being perpetrated in your own living room by two fleshy people who happen to share your genetic material. This is not an unpleasant image to be buried in one’s subconscious. It’s the familial equivalent of a train wreck, a childhood-ending event that necessitates years of spiritual and psychological counseling. A scene of jigglesome unholiness that cannot be unwatched.

Fortunately there are plenty of things in life that can be unwatched.

Like watches, after you beat them to death with a hammer. Then they’re un-watched. Get it? Cough. Anyway, you wouldn’t really do that, of course.

COURTESY OF SONY

That which is watched...

The Multi-Sport GPS Watch

Ever walked in on your parents committing a crime against nature? Let us know: techeye.wbj@gmail.com

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