Warsaw Business Journal Feb-Mar 2022 #69

WARSAW

WE STAND WITH UKRAINE

BUSINESS JOURNAL S i n c e 1 9 9 4 Po l a n d ’ s l e a d i n g

FEBRUARY /MARCH 2022 ~ No. 1 (69)

business magazine in English

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GROWING INVESTMENTS

PLN 30.00 (VAT 8% included) ISSN 2543-9529 INDEX-RUCH-332-127

Energy transformation challenges

John Gabrovic

of Inspire Real Estate talks about Poland’s thriving food halls

FEBRUARY/ MARCH

48

6 In Review News E-sports stats

22

24

15 Lokale Immobilia

News Globalworth’s buildings Office market figures INWI’s investments City Focus: Łódź Interview: John Gabrovic, Inspire Real Estate Interview: Robert Baj, CBR Events

30 Features

44

30

Energy transformation Impact of war on Poland Foreign investments Interview: Krzysztof Drynda, PAIH Interview: Monika Kurtek, Bank Pocztowy Poland-US export and import

48 Talking Points

Tomasz Grodzki, speaker, the upper house of the Polish parliament Evgenij Kirichenko, Gremi Personal

57 TECH

News HR solutions E-mobility AI-controlled weapons NFT communities Pegasus in politics

70 Events WBJ.PL

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“IT’S ONLY BEEN TWO MONTHS SINCE THE START OF THE YEAR, AND WHAT A YEAR IT HAS BEEN ALREADY!”

PUBLISHER'S NOTE I feel terribly sorry for all the people suffering unnecessarily at this time.

Having lived in Poland for over 20 years, I have experienced many things — from when it was the wild, wild east to a nation maturing and getting a bit obnoxious. But what I am currently experiencing in these sad and tragic days is a huge mass of Poles who stand together with Ukraine and want to help, support and welcome our neighbors from the east. It is a very moving and amazing observation, that confirms my belief: Poles are goodhearted and smart people.

But we are still at the starting line of a sprint. What if it metamorphoses into a marathon? Is there enough power and energy to continue the openness and support? Like most other commentators and experts, I simply don’t know what tomorrow will bring.

Positively overwhelming are also the united and speedy actions and solidarity that the western leaders, states and institutions have shown with the intention to combat unprovoked

invasion and war with strong sanctions and isolation.

It’s only been two months since the start of the year, and what a year it has been already! Stress and nervous atmosphere. Key factors: Covid (mainly Omicron), inflation, interest rate hikes, and now a war in Europe. How will this end?

As concluded earlier, we don’t know what tomorrow will exactly bring but we do know that there is a will and a historicallyproven survival instinct in Poland: in Polish people and businesses. A will to move forward.

My team and I have prepared for you in this issue of the WBJ stories and interviews and gathered information about trends, insights and present status of things that today and tomorrow will be influencing Poland as its business and economy move forward. Of course, current uncertainty still blurs our vision, but we have done our best to give you insights about Poland at the time of writing this note.

Let’s stay united and strong and hope for peace in Ukraine (and beyond) and a quick recovery.

MORTEN LINDHOLM

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CONTRIBUTORS Morten Lindholm Editor-in-Chief/Publisher mlindholm@valkea.com

Sankhyayan Datta Managing Editor sdatta@valkea.com

Krzysztof Maciejewski Business & Web Editor kmaciejewski@wbj.com

Kevin Demaria Art Director kdemaria@valkea.com

Nikodem Chinowski Nikodem is a journalist, PR officer, copywriter, published author — in one word — a scribe. An observer of contemporary geopolitics and geoeconomics, he has been writing for over a dozen years.

Anna Rzhevkina Dynamic and open-minded Anna worked for seven years as a Reuters reporter before switching to freelancing. She is an independent journalist based in Poland covering business and economy, mainly in CEE.

Contributors Ewa Boniecka Nikodem Chinowski Ben Esmael Jacek Krawczak Iwona Kubisiak Robert Mikulski Sergiusz Prokurat Eliza Przeździecka Aleksander Rajch Anna Rzhevkina Sales

Izabela Kaysiewicz ikaysiewicz@valkea.com Katarzyna Pomierna kpomierna@valkea.com Print & Distribution

Krzysztof Wiliński dystrybucja@valkea.com Event Director, Valkea Events

Magda Gajewska mgajewska@valkea.com

Contact: phone: +48 22 257 75 00 fax: +48 22 257 75 99 e-mail: wbj@wbj.pl

Eliza Przeździecka Eliza is a Warsaw School of Economics professor and chief economist, American Chamber of Commerce in Poland.

She has authored numerous publications on FDI, global value chains and international trade.

Sergiusz Prokurat With over 15 years of experience in Europe and Asia as a lead manager, entrepreneur, PhD lecturer, project expert and journalist, Sergiusz is an IT-savvy economist and published author.

WBJ.pl For subscriptions-related enquiries, please email us at wbj@wbj.pl WarsawBusinessJournal

@wbjpl

All photographs used in this issue are courtesy of partners and companies unless specified otherwise.

Copyright © 2020 by Valkea Media SA All rights reserved. This publication or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permissionof the publisher.

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IN REVIEW

Over 500,000 refugees have traveled to Poland from Ukraine since the invasion began on February 24. Various Polish businesses have come to the fore to aid our neighbors in crisis.

FOOD Biedronka has said it would hire family members of its 1,800 Ukrainian workers, who would each receive a PLN 1,000 grant. Biedronka has also promised $1.2 million to deliver basic food, hygiene and cleaning products to refugees.

ACCOMMODATION Arche Hotels, a Polish hotel group, has stated it has already accommodated 1,000 refugees and prepared to accept another 5,000, while its facilities in Lublin, near the PolishUkrainian border, has collected bedding, clothing, Polish language books and toys for children fleeing Ukraine.

TRAVEL PKP Intercity has said its trains would carry Ukrainian citizens for free from the border. Meanwhile, car rental agencies Panek Panek CarSharing and 4Mobility have said they would allocate parts of their fleet for transport to the border and invited volunteers to help.

NUMBERS AT THE BORDER 6

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SHUTTERSTOCK

LOGISTICS CEO of Polish parcel locker giant InPost has said it would use parts of its fleet and drivers to transport aid packages collected by Polish communities to Ukraine.

IN REVIEW

News

Board game discovered A team of Polish archaeologists has uncovered a 4000-year-old stone board game in the Gulf Arab state of Oman, news agencies have reported. The discovery was made by researchers from the Centre of Mediterranean Archaeology at the University of Warsaw. In a statement shared with news agency PAP, the center said the archaeologists had been excavating a Bronze Age and Iron Age settlement near the village of Ayn Bani Saidah in Oman. “In one of the rooms of a large building from the Umm an-Nar period [2,500-2,000 BC], we found a game board,” said Prof Piotr Bieliński, the head of the research team. He added that such finds were rare, with some similar boards previously discovered in the Indus Valley area and the historical region of Mesopotamia.

ART & CULTURE

Painting returns An oil painting lost during WWII and restored nearly 80 years later, owing to a huge collective effort by the museum's staff and the Polish Culture Ministry, has returned to the National Museum in Wrocław. "The Lamentation of Christ" by an artist from the School of Lucas Cranach the Elder was formally handed over to the museum recently. Lucas Cranach the Elder (1472-1553) was a leading German painter and engraver of the Renaissance period.

BUSINESS & ECONOMY

Polish deal: minister resigns Polish Finance Minister Tadeusz Kosciński has resigned, a spokesperson for the ruling Law and Justice (PiS) party recently said, after a dispute over the rollout of tax reforms. The Polish Deal, introduced in January, was a reform that was meant to benefit all Poles, barring the highest earners but sparked an outcry when some lower earners, like teachers, received pay cuts rather than raises. The new rules remain unclear, even to tax experts, critics said.

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SOCIETY

Ukrainian officials accused of racism

Since Russia invaded Ukraine on February 24, an outpouring of support for Ukrainians has been witnessed across much of Europe, Australia and the West in general. Tens of thousands of international students have been stuck in Ukraine since the war started.

African and Indian students stranded in Ukraine are accusing officials of discriminating against them and pushing them back from getting to the border. Viral videos posted on social media purportedly show black people being prevented from boarding a train and left stranded at a railway station in Lviv, as Ukrainians were allowed on. Others said they were turned back from a border and were being shot at. Indian students also claim Ukrainian guards on the Polish border, beat them up and did not allow them to cross.

BUSINESS & ECONOMY

BUSINESS & ECONOMY

Double-digit inflation ‘possible’

Aramco to buy stake in refinery

The government hopes that Poland's average annual inflation in 2022 will fall to 7% on average from a January peak of 9.2 percent, according to a government spokesperson. Prices of consumer goods and services (CPI) increased by 9.2 percent year on year, and by 1.9 percent month on month in January 2022, Statistics Poland (GUS) has reported. Asked whether it was possible that the CPI growth would exceed 10% in February, Piotr Mueller told a Radio Plus program on February 21 that such a possibility could not be ruled out.

Saudi Aramco, a Saudi Arabian oil company, will buy a stake in the refining subsidiary of Polish oil company Lotos, while the MOL Group, a Hungarian oil and gas company, is to purchase its 417 petrol stations, according to a report released by Polish fuel company PKN Orlen. In July 2020, the European Commission approved the acquisition of Lotos by Orlen under the condition that certain divestments are carried out.

Both, Lotos and Orlen, are controlled by the Polish state. Orlen has said, according to the preliminary agreement,

>>>

SHUTTERSTOCK

ARCHAEOLOGY

IN REVIEW

Trending Business: Esport Statistics

Poland: Europe's leader in the esports industry ESPORT IN POLAND IS DYNAMICALLY INCREASING IN VALUE, SUMMARIZES THE POLISH ESPORTS LEAGUE (PLE) IN ITS LATEST REPORT.

Most active advertising sectors

12.1% Retail

15.8%

Polish Esports League fans

FMCG

Value of the Polish esports market

$11.5 million in 2020 $15 million (estimated) in 2021

28%

aged 25-34

Value of the Polish esports sponsorship market

42%

PLN 32 million (estimated) in 2021

aged 18-24

Esports popularity

SHUTTERSTOCK

61%

of Poles aged 16-65 have come across the term “esports”

46%

of esports consumers first viewed esports content during the pandemic

26%

of Poles bought a product or esportsrelated service at least once

22% below 18

WBJ.PL

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IN REVIEW

News

Aramco is expected to pay around PLN 1.1 billion for its stake in the Lotos Asfalt company. Additionally, Orlen has signed a long-term contract with the Saudi Arabian company for oil supplies of between 200,000 and 337,000 barrels per day as well as an agreement on probing investment research in the petrochemical sector.

CLIMATE & ENVIRONMENT

Ambassador to Prague fired Polish President Andrzej Duda dismissed Poland’s ambassador to Prague Mirosław Jasiński. The move came after Jasiński criticized Poland for lack of willingness to solve the Czech-Polish dispute over the Turów mine in an interview with the newspaper, Deutsche Welle. “It was a lack of empathy, a lack of understanding and a lack of willingness to engage in dialogue — and this was primarily on the Polish side,” Jasiński said in the interview published recently. Moreover, Jasiński criticized the management of the mine — owned by the state company PGE — for being arrogant.

GEOPOLITICS

250 Abrams tanks to Poland The US State Department has approved the sale to Poland of 250 Abrams M1A2 SEPv3 tanks, the vehicle's latest version, Poland's defense minister announced recently. The tanks, which come with an estimated purchase price of $6 billion, are part of a modernization program of the Polish armed forces. "Very important news for Polish security … It's an extremely important strengthening of our defense capacity and one of the most important armament contracts in the history of Poland," Mariusz Błaszczak wrote on Twitter.

MEDICINE

Covid-19 med council resigns More than two-thirds of Poland’s Covid-19 medical advisory body resigned recently saying the government was not heeding their advice in its response to the pandemic. In a statement, 13 of the board’s 17 members said that with “growing frustration” they were experiencing a “lack of political possibilities to

introduce the optimal and globally tested methods of fighting the pandemic."

They also complained of a “growing tolerance” in the government for state officials playing down the threat of the pandemic or the need for vaccination.

RELIGION

Church in ‘devastating’ decline The once staunchly Catholic homeland of St John Paul II is in a "devastating" decline among young people largely because of clergy sexual abuse and only a continuous process of "purifying" itself can counter that regression, says the Primate of Poland. Wojciech Polak, Archbishop of Gniezno and Primate of Poland, was commenting on recent data since 1992 published by CBOS, Poland's state research agency, showing that less than 25% of young Poles currently practice their Catholic religion. In the early 1990s, that figure was almost 70%. "These are simply devastating numbers," said Polak.

RETAIL

Who was the best retailer to work for in 2021?

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Top 10 retailers 1. Rossmann 2. Allegro 3. Empik 4. Apart 5. Sephora 6. Lidl 7. Douglas 8. IKEA 9. Zara 10. W. Kruk

Curated from: aljazeera.com, apnews.com, cnn.com, theguardian.com, la-croix.com, pap.pl, reuters.com

SHUTTERSTOCK

YouGov, an international company dealing with market research and data analysis, together with Inquiry, checked which companies from the retail sector are the most attractive employers in Poland.

The employer's reputation assessment is based on two questions: “In which companies would you be proud to work? And in which companies would you be ashamed to work?.” The comparisons were made using the Net Reputation indicator, which is the difference between positive and negative indications.

The first place in the YouGov Reputation 2022 ranking in Poland is taken by Rossmann – the reputation index for this brand is over 31.3. However, this is 3.6 percentage points lower than in 2020. The drugstore chain is just ahead of Allegro with a result of 29.4 (an increase of 1.3 pp compared to 2020), while Empik was in third place (an increase of 0.8 pp).

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LOKALE IMMOBILIA

INDUSTRY SPOTLIGHT CEEQA is back!

JUNE 28, 2022

REAL ESTATE INDUSTRY NEWS (covering)

Hospitality Investment Market Logistics Mixed-use Office Residential Retail Find more daily at wbj.pl/real-estate

REAL ESTATE

The CEE Real Estate Oscars Are Back The sector’s most valued annual gathering and most trusted industry recognition, which was cast into hibernation in March 2020 as the covid pandemic took hold, is currently in consultations with commercial and delivery partners and making active preparations, for an awards entry kick-off after MIPIM in mid-March culminating in the CEEQA Gala on June 28 at Wyścigi in Warsaw. Full plans including the awards schedule and jury panel will be announced shortly.

The biggest news of the return of CEEQA is the announcement of a new face, Svetlana Fedosova. Following a successful five years with GRI Club (Global Real Estate Institute) leading its activities in the CEE sector, Svetlana has joined CEEQA as equity partner and CEO to work alongside its founder, Richard Hallward.

>>>

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LOKALE IMMOBILIA NEWS

OFFICE

“Further changes in the office market will be largely determined by the pace of adaptation of the hybrid work model in companies” Bartłomiej Zagrodnik, Managing Partner/CEO of Walter Herz, a commercial real estate agency in Warsaw

OFFICE

Postępu 14’s new tenant CA Immo has signed another lease agreement in the Warsaw office building Postępu 14. Packeta Poland has become a new tenant of the building, leasing 702 sqm of modern workspace on the first floor. The occupancy rate of Postępu 14, one of the most modern office buildings in the Mokotów district, offering nearly 34,500 sqm of commercial space, is 96%. Packeta is a global digital platform for e-commerce founded in 2010 in the Czech Republic.

OFFICE

New tenants in Grzybowska Park RESIDENTIAL

Pileckiego 59 investment apartments JW Construction started selling investment apartments on Pileckiego 59. The project includes 224 apartments ranging in size from 17-52 sqm. Functionally-designed apartments with an area of ​​25-52 sqm consist of a living room with a kitchenette and bathroom, and the larger ones have a separate bedroom. The three-room apartments have a separate kitchen and two bedrooms. They all have large balconies and are equipped with air conditioning.

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PRESS MATERIALS

New companies have decided to locate offices in Grzybowska Park, a recently refurbished office building with its own garden in the very heart of Warsaw. The landlord was advised on the transactions, which saw the entire second floor leased, by real estate advisory firm Savills. The first companies to move in are the subsidiaries of the GreenArt Group operating in the renewable energy industry and focusing on the construction of wind and photovoltaic farms and the management of operating assets. GreenArt will take occupancy of approximately 370 sqm of office space dedicated to its rapidly growing team. The second tenant to come to Grzybowska Park is a financial services company that will take around 350 sqm.

PARTNER HIGHLIGHTS

DOKI AND MONTOWNIA NEW LIFE FOR THE HISTORICAL PART OF GDAŃSK On the historic lands of Gdańsk, a multifunctional DOKI Project is being built by Euro Styl – a developer from Dom Development Group. It was honored with European Property Awards. Besides the residential DOKI LIVING zone, the integral part of the project will be the renovated building of MONTOWNIA where serviced apartments, a food hall and a conference center will be situated.

D

ocklands in London or HafenCity in Hamburg are examples of reclaimed post-shipyard lands in Europe. In Gdańsk, their counterpart will be Młode Miasto, encompassing, among others, the lands of the former Gdańsk Shipyard. In this very place, DOKI, recognized by the European Property Awards 20212022 as the Best Mixed-Use Project in Poland, is being built.

The project is situated in the very center of Gdańsk and it neighbors the former shipyard wharves and the European Solidarity Centre. Within only a 15-minute walk one can get to the main railway station, the Old Town with the Neptune fountain, the Museum of the Second World War and other tourist attractions.

APARTMENTS WITH MARVELOUS VIEWS AND SERVICED LOFTS WITH CHARACTER

DOKI consists of residential (DOKI Living), hotel (MONTOWNIA) and office (DOKI OFFICE) zones — the first two

by Euro Styl and the last by Torus. They perfectly match the concept of the 15-minute city. DOKI Living contains comfortable flats designed in line with the latest architectonic trends. The residents will be accompanied by the beautiful view of the water, historical port cranes or Gdańsk panorama. Every building will contain an inner patio available for residents only.

An integral part of the project is also the monumental building of MONTOWNIA which, in the EPA contest mentioned above, won in the category of Commercial Renovation/Redevelopment. The building will capacitate 114 completely equipped serviced apartments (lofts) the areas of which range from 37-51 sqm, with a kitchenette each. The way to the lofts will lead through the hotel lobby with a 24-hour open reception desk.

The administration of MONTOWNIA will be managed by a professional operator — a company belonging to the Euro Styl.

In MONTOWNIA, the area of 2,300 sqm will be dedicated to a conference center and a food hall with an attractive catering offer.

NEW LIFE FOR THE HISTORICAL PLACE

DOKI and MONTOWNIA are interesting proposals for those who would like to live in this unique place and those looking for the possibility to invest their capital in real estate. The synergy of possibilities created by modern flats, serviced apartments, conference space and the food hall adds prestige to this project.

The exceptional character of MONTOWNIA and all DOKI complex, as well as surroundings changing for the better, are the reasons why the attractiveness of this place will be growing in the coming years. It will become the other center of Gdańsk.

WBJ.PL

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LOKALE IMMOBILIA NEWS

RETAIL

Supersam in Katowice changing Supersam, a popular shopping destination for residents of Katowice, and at the same time one of the most modern office buildings in the center of Katowice, is undergoing a metamorphosis. It will feature top-class office space, as well as a new restaurant area. The Konior Studio team led by the well-known Silesian architect Tomasz Konior is responsible for the reconstruction project. The works are to be completed in the fourth quarter of 2022.

620,000 OFFICE

sqm

The total office resources in Poznań. 2021 was a successful year for the office market in the city in western Poland. As much as 37,500 sqm of new office space was commissioned for use, which is the third result among regional cities in the country.

WAREHOUSE & LOGISITICS

A furniture manufacturer is settling into the MLP Poznań West logistics center. MLP Group is to develop over 26,000 sqm for the tenant. The furniture manufacturer, which currently leases approximately 4,000 sqm of modern warehouse space, is set to significantly expand the space it occupies. Under the lease agreement, as part of the MLP Poznań West expansion project, MLP Group will deliver to the tenant over 26,200 sqm of additional space this year.

The space being developed will include approximately 300 sqm of modern office space, with the rest to be used primarily for warehousing purposes.

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PRESS MATERIALS

Furniture manufacturer at MLP Poznań West

BUSINESS SPOTLIGHT

LEADING INNOVATION Globalworth’s tenants will benefit from innovative manuals for their office buildings.

G

lobalworth, a leading office investor in CEE, has introduced an innovative solution for its tenants — online building manuals. They contain information about all amenities, as well as practical advice and guidance for tenants’ employees who are a part of the Globalworth community.

Thanks to the manuals, Globalworth’s tenants gain access to practical knowledge about the buildings they work in, to be able to navigate around them and use all the amenities they offer. Now the tenants are able to quickly meet the property management team and contact the right person, find out about the facilities located in the property and its location (e.g. where to find a parcel locker, bicycle parking or smoking area), and safety rules, including valid

Paweł Słupski, Senior PR and Marketing Manager at Globalworth Poland, adds: “Having an office in a modern building opens up a number of possibilities, giving tenants tangible benefits. After our talks with them, it turned out that not everyone was aware of the availability of useful services in the building, and not everyone was aware of the many functionalities offered by the landlord. We decided to collect all the tips and descriptions in one place and this is how the manual project was born. We made sure that information about them reached tenants through various channels, and that is why we have also prepared a creative campaign using funny graphics placed on mirrors in elevators and bathrooms.”

Covid-19 restrictions. The manuals help in planning moves or larger courier deliveries, and in using the technical service. They are also a source of information about additional attractions in the vicinity (such as restaurants, cafes, shops) and practical tips (access to the office building, food delivery, guest notification, etc.). All manuals are available online in two language versions: Polish and English.

“Online building manuals are a completely new experience and innovation that has never been seen on the Polish real estate market. We are the first landlord to implement such a wide solution for tenants. Globalworth’s office building users receive a complete guide to help them take full advantage of all the benefits of working in a modern office building. The manual will be very useful, among others, for new employees and those who after long-term work from home, perhaps for the first time after a pandemic, will have to find themselves in an office environment. We want to help them with this, and make work in our office buildings even more comfortable,” says Artur Apostoł, Managing Director – Real Estate Operations Poland, Globalworth.

Tenants of the two office buildings in Warsaw: Skylight and Lumen, are the first to use the manuals prepared by the Globalworth team. The next editions are in preparation, and soon the users of Quattro Business Park, Podium Park and Lubicz Park office complexes in Kraków, as well as the Warsaw Trade Tower and the Spektrum Tower in Warsaw, will receive their manuals.

Artur Apostoł Managing Director – Real Estate Operations Poland, Globalworth

Paweł Słupski Senior PR & Marketing Manager, Globalworth Poland

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LOKALE IMMOBILIA LATEST OFFICE MARKET FIGURES

6,038,800

sqm

— total modern office stock in Poland’s eight major regional markets at the end of Q4 2021

853,650 sqm

Tri-City 963,300

— vacant at the end of Q4 2021, resulting in a vacancy rate of 14.1%

Warsaw 6,150,900

594,500 sqm

Wrocław 1,253,100 sqm

— total volume of leasing activity in 2021, which is 2.1% more than the previous year

226,300 sqm

Kraków 1,617,600 sqm

— office space completed in 2021

49%

Total modern office stock in the largest cities in Poland at the end of Q4 2021 (SQM)

— the (highest) share in transaction volume attributed to new deals in the annual take-up

NOTE: Polish Chamber of Commercial Real Estate (PINK) recently published figures summarizing office market in eight major regional markets in Poland (Kraków, Wrocław, the TriCity, Katowice, Poznań, Łódź, Lublin, Szczecin) for Q4 2021.

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The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers, Cushman&Wakefield, JLL, Knight Frank, Newmark, Savills) and includes information on existing modern office stock, new completions, take-up volumes and vacancy rates.

BUSINESS SPOTLIGHT

GOOD TIMES FOR THE LAND MARKET The summary of 2021 shows further records for transaction values in the investment land market. The segment is resilient in the face of turbulence. What will 2022 bring?

Daniel Radkiewicz, CEO of INWI Development, answers this question.

WBJ: How does INWI see the

potential for further growth in 2022?

Daniel Radkiewicz: The solid analysis allows us to look for new opportunities. Our team constantly analyzes factors that have the greatest impact on land prices. Another important factor is the shrinking supply of available plots in large cities. The land banks available to developers have never before been emptied so quickly. The need for new projects is extremely strong, so the outlook for us in the process of acquiring new land is really good. INWI is a rapidly growing company, which employs (and is still searching for) experts with many years of experience, who excel in the field of investment land. Our knowledge, supported by numerous successes, allows us to analyze the real estate market in a wider context. As a result, in the last three years, we have finalized land purchases worth over PLN 250 million and further transactions are planned for this year.

We are seeing increased interest in land that is less obvious. Do you engage in the purchase of such land?

Absolutely! We consider each opportunity individually. We often take up a

challenge regardless of the difficulties or possible complications. The solutions we find are often unconventional. Owners of land and buildings sometimes do not realize how valuable their property is. Our price offers positively surprise them. INWI uncovers the potential of the land, finding the most optimal form of use for the location, which is the most advantageous legally and business-wise.

Landowners (companies, individuals) often reach for a mortgage, go into debt and do not realize that they have a huge capital hidden in their land. The options for landowners are many: selling an unused piece of land, expanding or demolishing a building complex. We are proactive, often finding a new location ourselves for the seller who can profitably dispose of the property and relocate their business. Many companies do not need a central location while relocation is financially advantageous.

What locations are most desirable then?

Basically, all of them. We focus on the centers and the suburbs of large cities, as well as well-connected areas located at major hubs of motorways.

Interestingly, there is still a lot of land in cities that have the potential to be converted from its current use, e.g. from services to residential use. It also happens that large companies operate only on part of the property, the facilities are outdated or part of the land remains unused. This type of land in the central districts of cities is nowadays worth its weight in gold.

Daniel Radkiewicz is the founder and president of INWI which invests in the land, residential, office, retail and logistics real estate sector.

He has 15 years of experience in the real estate market and gained valuable experience in project management in Warsaw and Paris.

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CITY SPOTLIGHT ŁÓDŹ

THE INVESTMENT HOTSPOT Łódź has grown into a modern business-friendly city that attracts investors from all over the world, thanks to its location in the heart of Europe, logistics infrastructure and an educated workforce.

Above: Łódź Fabryczna -Opened in December 25, 2016, Łódź's main train and bus station.

Right: Monopolis office - a former alcohol factory, today functions as a cultural and theater space. Blue inscription Łódź sculpture by Rafał Grzelewski.

By Anna Rzhevkina

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FEB/MAR 2022 WARSAW BUSINESS JOURNAL

International potential

The capital expenditures by companies operating in the zone amounted to about PLN 23 billion, according to the Polish Investment and Trade Agency. Łódź has diversified into industries other than manufacturing, such as IT, business services and R&D. Its key investors include Europe’s biggest home appliance maker Whirlpool, Swedish telecoms giant Ericsson and Japanese IT titan Fujitsu.

“Key industries which we try to attract to the region include light manufacturing with advanced technologies and modern services for business,” Agnieszka Sobieszek, deputy director at ŁSSE, told the Warsaw

Business Journal (WBJ).

Since early 2000, Łódź has been growing as a business services location. Nowadays, about 30,000 accountants, programmers, engineers and supply chain specialists work in the city for international companies, according to the City of Łódź Office.

Logistics

The Łódź zone stands out by its logistics infrastructure. There are two international airports nearby and an extensive cargo rail network, including the Poland-China railway connection. In addition, the zone is located at the intersection of trans-European highways, A1 and A2.

THIS SPREAD SHUTTTERSTOCK (3)

Łódź — the third-largest city in Poland by population — is known as a former center of the textile industry. The city’s rebirth started, when the Łódź Special Economic Zone (ŁSSE) was established in 1997. One of 14 SEZs in Poland, it attracts investors by business incentives, such as tax exemption and developed infrastructure. In 2020, ŁSSE was named the best in Europe and third in the world in a ranking by fDi Magazine from the Financial Times group.

Łódź railway stations offer direct connections with major Polish cities, including Warsaw (130 km), Kraków (252 km), Wrocław (217 km), and Tri-City (337 km). The city is now working on a project to link three main stations — Fabryczna, Kaliska and Widzew — with a cross-city tunnel.

In addition, the Polish government plans to build the Central Communication Port — a new transport hub between Łódź and Warsaw. The project includes the construction of a new airport that is expected to initially handle 45 million passengers a year.

Companies planning to develop operations in Łódź will also find here qualified engineers, IT specialists and financiers.

Mateusz Sipa, vice director in the Business Development and International Relations Bureau at the City of Łódź, points out the main features of the city:

- A green city: Łódź is one of the greenest cities in Poland.

Almost a fifth of the area of the city is covered by green spaces.

almost 1,800 ha inhabited by about 150,000 people or a fifth of the city’s population.

- An example of urban regeneration: the Area Regeneration Program covers the area of

- An unusual tourist destination: recommended by the National Geographic Traveler (one of the top destinations in the sustainable development category in 2022), the Guardian UK (one of the best holiday destinations in 2021) and the Lonely Planet (second-best destination to visit in 2019).

Zuzanna Krech, regional director central Poland at Cushman & Wakefield cited in “Investment Potential of Łódź” report by recruitment and consulting firm Antal.

Rental prices in Łódź are more affordable compared to the largest cities. Square meter on average costs €13.5/ month compared to €23.5 in Warsaw. A distinctive feature of Łódź office stock is its wide range of revitalized post-industrial projects.

For example, Łódź Monopolis — a complex combining office and cultural space — gave a second life to the historic plants of Monopol Wódczany.

In 2020, the complex won an award in global real estate competition MIPIM, beating

competitors from Singapore, Montreal and Bangkok.

The other well-known commercial spaces are Textorial Park, consisting of three office buildings in the Księży Młyn area that borders Źródliska Park and Fuzja project in the city center. New projects that offer a more boutique-style feel include Hi Piotrkowska, Łódź, Brama Miasta and Łódź Work.

Moreover, there are many coworking operators on the Łódź market, including Chillispaces. com, Business Zone, Business Link and New Work. There are also initiatives such as SkyHUB, offering free office space with a library for start-ups, Katarzyna Prus from the Łódź city office told the WBJ.

- A sustainable city: Łódź undertakes a number of CSR activities, such as the regeneration of urban green areas in cooperation with local companies.

Residential

The central point of the city’s revitalization plan is the New Centre of Łódź (NCŁ), which assumes the reconstruction of roughly 100 ha in the heart of the city. NCŁ features renovated Łódź Power Plant Complex (EC1) building, which used to be the first power station of the city.

It is now a space for art and culture. The EC1 complex is also the headquarters of institutions bringing together artists and filmmakers: Łódź Film Commission and the Centre for Comics and Interactive Narration.

The central station Fabryczna is now one of the most modern railway stations in Poland with the roof made of thousands of glass and metal panels, reflecting sunlight. Visitors, coming to Łódź, head from there to Piotrkowska Street — a symbol of the city and one of the longest promenades in Europe. The street pulsates with life thanks to dozens of restaurant yards, pubs and music clubs.

Office space

Łódź offers over 578,000 sqm of modern office space, with a further 88,600 sqm to be completed by the end of 2022.

In the last five years, the total stock of office space in Łódź has increased by over 60% and the city is now ranked seventh among the largest office markets in Poland, according to

The Manufaktura - an arts center, shopping mall, and leisure complex.

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LOKALE IMMOBILIA COVER STORY

Regarded as one of the premier authorities on Poland's food halls, John Gabrovic of Inspire Real Estate sits down to talk about the future of this thriving segment.

INTERVIEW BY MORTEN LINDHOLM

WBJ: Could you give us a

short background as to your life and work in Poland and how you ended up with Inspire Real Estate Advisory?

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Poland in 1992 as part of the MBA Enterprise Core, which paired newly minted US business school grads with young Polish entrepreneurs. It was a fascinating experience. And like many ex-pats currently in Poland, I came here for a 1-year experience and have now made Poland my home.

The motivation behind forming Inspire Real Estate Advisory has come from the confluence of my experience owning and operating food, beverage, and leisure businesses as well as working for 10 years in real estate. Pre-covid, it was obvious that the global trend toward online purchasing was going to affect how the consumer spends her time and money in Poland as well. Covid only accelerated these trends. At Inspire, we help landlords of retail and mixed-use projects “create community”. In effect, the landlords have the hardware and we pro-

vide the software to ensure that physical assets offer the food, beverage and leisure that today’s consumer wants. Consequently, we help to drive footfall, improve turnover and rents and thus asset value of the clients we serve.

You have been in the restaurant business for a long time… and still are. How do you see the future of the gastronomy segment in Poland? Who will win and who will lose?

Wow… If I only knew exactly how the consumer will behave postCovid. Nobody knows if or when office workers will get back into the offices. No one knows to what extent the habits of shopping online will remain after we all try to go back to ‘normal’ life. One thing we do know is that we humans are social creatures. We crave social interaction. It is not normal or healthy for us to be locked in our homes. So, we think the win-

PHOTOGRAPHS COURTESY OF INSPIRE REAL ESTATE

HALL'S WELL

John Gabrovic: I arrived in

Food Hall in Elektrownia Powiśle

You may not know that the average Pole spends the smallest percentage of their disposable income on dining and drinking outside of the home

ners in gastronomy (and the winners within the retail and mixeduse development for that matter) will be the ones who truly understand how to “create a community” within their spaces. We need to ask how we can introduce compelling and creative environments that will motivate the consumer to leave the home to dine, to shop or to play. We all need to be much better at giving the consumer the on-premise EXPERIENCE that they can’t get online.

Regarding the gastronomy industry specifically, we see that there will be a division of operators in the market. There will be those big players who will excel at the food delivery or to-go model. These operators will compete on ‘convenience’ and ‘price’.

These operators will also focus on foods that travel well (e.g. pizza or sushi). Then at the other end, we will have operators who do a really good job of the on-premise dining or drinking experience.

Finally, the younger Millennials, and now the Gen Z crowd, will wield greater influence on the on-premise dining experience. These generations are very comfortable with technology; they are very well-traveled and curious about world cuisines and they also demand a more exciting dining environment: one that is Instagrammable. And, while these generations go out often, they focus on value because they are not yet at the high-earning stage. For these reasons, we like to think food halls will continue to evolve to meet consumer tastes and desires.

Shopping centers used to limit their space for gastronomy – now many of them are re-building their food courts. How do you foresee the future in this regard?

I think that almost every owner of retail or mixed-use real estate expects to add more gastron-

omy to their projects. You may not know that the average Pole spends the smallest percentage of her disposable income on dining and drinking outside of the home… in all of Europe.

The average wage in Poland has increased from 53% of the average EU wage to 73% and the gap continues to narrow. It’s a simple fact that as people make more money, they tend to allocate more of their disposable income to experiences and thus this statistic in Poland will eventually reach European norms which means that the gastro market in Poland is primed for huge growth. If we overlay the fact that the Gen Z generation, which is all about the experience over material things, we predict that the growth in gastronomy is going to accelerate post-Covid. Therefore, smart real estate developers are getting ahead of the game by thinking about how and where to add gastronomy to their projects.

>>> WBJ.PL

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LOKALE IMMOBILIA COVER STORY

The Covid era has accelerated the delivery segment (not just of food, but also shopping and groceries). Is this an opportunity for the gastronomy industry or…?

I just posted a Linkedin article on this very subject. Food delivery is here to stay because there are times when we really want or need the convenience of receiving food without leaving our homes or offices. But, not all food travels well and we all seek social experiences. The small restaurant operator will have to decide who he/she wants to serve because I don’t think you can do both delivery and onpremise really well – the business models for success are just too divergent.

You have built a reputation of being a thought leader in the trending ‘Food Hall’ industry.

What do you expect the future holds for food halls?

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You see, I think the term ‘Food Hall’ should already be wiped from our minds as a targeted offer because it is too narrow

FEB/MAR 2022 WARSAW BUSINESS JOURNAL

That’s a very good question. It is pretty amazing to see that Warsaw now has FIVE food halls – and you can visit any one of them on the weekend and each will be full. Each attracts a slightly different consumer and I think this not only has contributed to the success of Warsaw’s food halls, but has clearly demonstrated that consumers love the variety, value, and social vibe offered by them.

Regarding the future? Well, the current version of the Food Hall has been around for about 10 years now. What is next? I often cite Amsterdam’s Foodhallen as the best model to copy. During my first visit to Amsterdam, I was totally blown away by how much they had got right. They got it right 10 years ago and I think the entire complex where Food Hallen operates, called De Hallen, still provides real estate executives a really good benchmark for suc-

cess. De Hallen includes a food hall, a hip cinema, a vintage bike shop, a garment factory that makes jeans, a cool bookstore & coffee shop and a vintage clothing store. It was designed as a public-private venture serving the community and they got that really right.

You see, I think the term “Food Hall” should already be wiped from our minds as a targeted offer because it is too narrow.

We think we should all strive to create “Community Hubs” where the food and drink play a big part of the overall offer, but only represents one part of what the nearby community desires. A Community Hub will consider what kinds of retail (food and non-food) and what kind of leisure or fun the surrounding community seeks. And this advice is as good as it is for a city-center project in Warsaw or an out-of-town project in, say, Slupsk. Yes, city centers

PHOTOGRAPHS COURTESY OF INSPIRE REAL ESTATE

Food Hall Browary

Hala Kosyzki

and capital cities offer higher income and higher density, but just because you are wealthy and live in a big city, that does not mean you have a monopoly on the desire to have fun with family and friends. The offer simply needs to be adapted to the desires and needs of the local community. Food halls have a great future ahead of them, but they will soon morph into Community Hubs.

You are also about to re-open a Warsaw legend – your Blue Cactus restaurant. Tell us more about the project?

I did the math and I think that we probably served over 1.2 million meals in Blue Cactus before we closed the restaurant in Mokotow. We were absolutely humbled by the immense and positive community response that we received when we announced we would re-open the legendary brand. We had

F ood Town at Norblin Factory

over 90,000 people react to our post announcing that we had secured leases in Elektrownia Powisle and Fabryka Norblin for the Cactus.

We are big believers in mixeduse developments and gastro hubs, and we think that White Star at Elektrownia and Capital Park at Norblin are two developers who really “get it.” We are proud to be a part of their projects. We will open both restaurants in April – May of this year.

Each restaurant is a bit different in terms of interior design, but guests will recognize that we have remained true to our Blue Cactus DNA of offering delicious Tex-Mex food drinks in a fun and casual environment.

The difference with the new offer will be that we will feature more healthy items – more fish, veggies and vegan items, but we will still feature our delicious BBQ ribs and fiery hot fajitas. We also are working hard

to ‘go local.’ We have a farmer in southern Warsaw who will provide us with our cilantro and other herbs, and a butcher in the Kartuzy region who will provide us some smoked meats. Inne Beczki, Warsaw’s biggest craft brewery, is working on a special Cactus beer for us featuring cactus, tequila, and lime. Both restaurants were supposed to open in the fall of 2021, so we can’t wait to open our doors. It will be tough to meet the consumer expectations from people that recall the original Cactus, but our team is ready for the challenge. Smacznego!

To view the current magazine about food halls in Warsaw, visit www.inspirerealestate.pl

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LOKALE IMMOBILIA INTERVIEW

from the neighborhood sharing a table and enjoying all of these attractions -it’s a place where you ‘come as you are’ and I think it’s this socially diverse atmosphere that really defines us.

Robert Baj, President of the Management Board, CBR Events, who operate Warsaw’s Hala Gwardii, talks with the WBJ about what makes Hala Gwardii loved by all.

INTERVIEW BY MORTEN LINDHOLM

WBJ: Could you tell us the

back story of Hala Gwardii and why do you think you’ve been so successful?

In September 2017, soon after the opening of Hala Koszyki, CBR Events opened Hala Gwardii four months after winning the tender against nine

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competitors and signing the lease with the City of Warsaw.

We successfully commercialized all of the available space within a short time, and that was the first sign our offer had emphatically met the needs of the market from the tenant side.

We rebuilt the electricity grid, toilets, water grid, fireproofing installations, heating, and ventilation in the space of only three months and, from the first day of launching we observed immediately that visitors enjoyed the space and already felt a sense of attachment.

We think we did a very good job of creating a wonderful environment for the community to visit us and to buy niche products from our farmers’ market, to dine with us at our spacious communal tables, or to have fun in the evenings whilst enjoying our program of events. Our offer is for EVERYONE and not limited to a particular consumer segment. On any given day, you will see young people, business people, tourists, and older folks

A lot has also been made of the way you have used the heritage of the hall to maximize its atmosphere?

That was something we worked closely with the architects with and they understood the goal clearly. For that, we particularly owe our thanks to Włodzimierz Mucha who believed in the dream as strongly as we did. We thought that it was important

ALL PHOTOGRAPHS PRESS MATERIAL

COME ONE, COME ALL

How did you set about creating Hala Gwardii?

From the outset when we prepared the tender we were working with the Bulanda Mucha architectural studio. We knew we’d have to collaborate with a top-class and renowned studio, so despite knowing that the original lease was only for three-years (and featured a possible 18-month cancellation option on the city’s side), CBR Events strongly believed we had something very unique that we could offer. As we were not the owners of the building we were somewhat constrained by what we could do with it, but we adapted the budget to match the contractual situation.

With that in mind, I think we have done a very a good job of listening to the community and providing the offers and the fun that they seek. Our offer is true to the communities’ needs.

We think the authenticity of our products and the vendors who sell these products can stand up to any other offer in the city. We also managed to integrate with and complement the pre-existing surroundings.

to keep the large scale of the hall intact, thereby allowing the natural light to illuminate the beauty and scale of the hall. You will see the history of the hall exposed on the large photos of the boxers who once fought here and won a gold medal in 1953 whilst competing under the watchful eye of their coach, the legendary Papa Stamm.

In your view, what are the biggest strengths of Hala Gwardii?

Quite simply, we cannot be directly compared to any other project in Warsaw. Everything we do, from A to Z, is focused on gastronomy. We have local vendors and even international ones putting their products and passion onto the floor every weekend. We are not connected to any shopping mall, office project or residential investment – for us, the market, gastronomic offer and cul-

On any given day, you will see young people, business people, tourists, and older folks from the neighborhood sharing a table and enjoying all of these attractions

tural activity represents the heart of our business model, and this is blended into the community and the neighboring area around the Hala Gwardii building and, importantly, to the amazing and legendary Hala Mirowska food market next door. Secondly, we offer a real and valid experience that’s strongly accented by our free and regular events. This is a place free of any pretense and that’s strongly reflected by our wide customer base. Whilst some food halls merely ‘liven up’ an office or residential project, for us F&B and events are the heart of our offer and this makes us really unique.

How important to your success has been the roster of events?

We are proud to have held over 150 events, all of which have been free of charge. As an example, I think our food festi-

vals have been totally unique though we’ve also hosted boxing galas, weekends dedicated to zero waste, art exhibitions and some truly special oneoff concerts. Our events are a regular and important part of who we are and in many cases they’ve created a sense of solidarity and establish a sense of community that is shared by our visitors, tenants and the management of the hall. Bearing in mind the unbelievable situation in Ukraine, we’re also preparing events and we will actively stand up to the plate to help as much as we possibly can.

We are a crossroads for people willing to share their experience within our walls. I think we have done a very good job of creating an authentic environment where real people want to meet: to talk, to discover, and of course, to enjoy great food and drink.

WBJ.PL

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SHUTTTERSTOCK

ENERGY TRANSFORMATION CHALLENGES

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Quantum dots, hydrogen or perovskites… Why alternative energy source technologies alone are not enough for Poland? BY ROBERT MIKULSKI

>>>

here are many great, innovative technologies in the renewable energy sector, such as the quantum dot patented by ML System from Rzeszów, which is a very small element consisting of a few atoms and mounted directly in glass panes. Thanks to its small size, the atomic attraction is much smaller and it is easier to obtain free electrons, which are later removed from the layers of quantum dots to the outer electrode.

This invention makes it possible to obtain free energy from seemingly ordinary glass panes, which are in any case constantly heated by the sun. An additional advantage of such glass panes is their increased thermal insulation properties. Installing such glass in both buildings and vehicles also solves the problem of space needed to place these sources, which, among other things, arises in the case of photovoltaic or wind farms.

Another noteworthy invention is flexible photovoltaic cells produced by Saule Technologies in Wrocław. Perovskites, as they are referred to, are minerals with a crystalline structure and properties to absorb sunlight, conductive, also obtained by synthesis. Their advantage over traditional silicon cells is both easier production process, lower weight and above all incredible flexibility. Perovskite cells are printed on PET films which gives a huge field of application and the possibility to cover practically any available surface.

T

can be implemented. Talking about technical possibilities only leads to the conclusion that there are plenty of technologies available in the world today and the above-mentioned solutions are a very narrow fragment of what mankind has already managed to produce in this time. However, producing it, commercializing and applying it in practice shows that there are years of work involved in it.

Let's also look at it from a different perspective. If we want to produce green hydrogen, we need to create an installation and infrastructure for this, and think about what we want to do with it: whether we want to charge cars or whether we want to use it in some other way, for example, in the household environment, or maybe in industries to power various types of energy sources. It's a bit like straits — you can't sail an infinite number of ships through a strait.

It is not art to produce something and push it out of the gate of the factory where it is produced. The world has been able to roughly handle all of that so far.

The trick is to do it in a circular economic way, in a subscription or rental method, which could deliver this type of asset to the market and allow it to be managed throughout the life cycle of this product. The option of renting a photovoltaic panel means that, firstly, this panel can be used a lot, and secondly, we know to whom it will return after the period of renting. Of course, at this stage of development, it does not determine whether it will be recycled or used in some other way, but we know that it will not end up in a dumpster. Instead, the panel may land in a company that deals with this professionally or that can reuse the raw materials that are sewn into the panel. And that too is an important issue of conscious and responsible use of Earth’s resources.

“Change is possible. It is a matter of modifying the approach and thinking, which is not being done in Poland”

A LOT OF POTENTIAL It is undeniable that all these technologies have the potential to transform the renewable energy sector. We have already had some success in this area, being at the forefront of EU countries and generating as much as 10% of Polish energy from renewable sources in June and 5% in July. However, the fact that we generate something is one thing, but the second issue is how quickly it

TECHNOLOGICAL LEAP Change is possible. It is a matter of modifying the approach and thinking, which is not being done in Poland. We focus mainly

on narrative, on talking about technologies while doing very little. And in a situation where there is neither a support system nor an understanding that actions speak louder than words, we really won't make that leap.

An interesting example of this is Toyota, which decided to make a technological leap and went into the production of hydrogen cars while completely excluding the introduction of electrics into their lineup.

Regulatory issues are far-reaching when it comes to our reality because we actually have an obligation to buy back what is produced from renewable sources. On the one hand, that obligation exists, but on the other hand, the system does not have the capacity to absorb that energy into its grid.

So it's easier to produce energy locally and consume it at the plant or at home than to produce it at this house or this plant and let that energy into the system, when the sun is shining, for example, because the system is already full. Photovoltaic panels on each roof should be functionally connected with energy storage.

MODERNIZATION FUNDS We have to find an effective way the European Union funds are spent. Poland received almost PLN 50 billion for energy modernization. Namely, the support system looks as if it only supports the purchase of equipment for generating alternative energy. But it doesn't talk about how to optimize from the system side what we need to use these available solutions. Maybe if someone is more aware he will buy some energy storage, integrate something or invest in an electric car. For example, the support for hydrogen technology is that the city has to buy hydrogen buses, while the city is only supposed to provide its inhabitants with mobility, which means getting around. Of course, this also creates jobs. But maybe this should work in such a way that the money is used to provide these assets, in some financial way, but not to buy them directly, because we don't really need these assets. We just need to use them over time and thus support and create leverage for the developmental leap forward with these funds.

What is currently in the regulations is defined in a rather strict way. The question may also arise whether the energy transformation will cost us another dispute after Turów. Is it still a path of evolution or maybe already a revolution? A change of mentality is already taking place and it is a revolution-

ary change. However, as far as Turów is concerned, it is a kind of game of interests and greater/lesser ability to understand which stakeholders are involved in it, what they are playing for, what should result from it and what can help to bring such issues to a solution. There may be more and more such situations, mainly because there are many issues that may create such conflicts, e.g. the issue of resources, access, electricity prices, gas prices, etc. Such situations arise from the following: we treat each other like two tribes, sitting on two sides of a forest.

And while one attacks the other for eating "their" berries, no one thinks about the fact that soon there will be neither forest nor berries. Therefore, thinking in terms of conflict rather than cooperation will lead us to such situations. Perhaps, our leaders will be confronted with such situations until they understand that the way to solve such situations is to seek agreement and cooperation and not to go into conflict.

Currently, the most important hindrances to energy transformation are: •m ental blockade •g ame of interests of entities who are market players • l ack of a holistic view of the energy sector, not only in the context of thinking about our security but thinking on a much broader scale Because we can continue to burn coal in our stoves and we can still mine coal, does not solve the problem in the perspective of a decade or two. Not to mention that it completely lacks thinking about our children.

New technologies can be developed when you have the comfort of the fact that they don't necessarily have to be profitable the first time they are used.

Family Business Initiative Association (IFR) is a Warsaw-based alliance that groups entrepreneurs who own family businesses, as well as experts and scientists who support this community.

Robert Mikulski, attorney at law, managing partner of BRILLAW and IFR expert, has been supporting the energy sector for almost 10 years.

INVESTING IN POLAND

FDI DOG EAT FDI DOG As Poland continues to be a preferred destination for foreign direct investments (FDI), its competitors seek to eat its investment lunch as the country isn't alone in this race.

BY BEN ESMAEL

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SHUTTERSTOCK

“Poland will continue to be a location of choice for businesses seeking nearshoring initiatives for services and manufacturing”

he global FDI showed a strong rebound in 2021 — up by 77% to an estimated $1.65 trillion from $929 billion in 2020 — surpassing their pre-Covid level, despite the uncertainty in the global economy caused by disrupted supply chains and high inflation. The uptick in 2021 seems to reflect the market's liquidity giving market players a reason for a positive outlook for 2022. Interestingly, developed economies saw the most significant rise, with foreign investments reaching an estimated $777 billion in 2021. In Europe, the increase is attributed to conduit economies, while the influx to the US more than doubled thanks to cross-border M&A. STILL OPTIMISTIC However, the recovery will continue to be highly uneven. FDI flows in developing economies increased by only 30%. The recovery of developing countries is encouraging. Still, the stagnation of new investment in the least developed countries in industries important for productive capacities and essential sustainable development in energy, food or health sectors is a significant cause for concern for local government and global institutions.

Investors are optimistic, placing confidence in the infrastructure sector supported by somewhat favorable (for now) long-term financing conditions, recovery stimulus packages and overseas investment, thanks to the uptick in consolidation and cross-border M&A. THE BIG PICTURE However, we must be mindful that last year's growth in FDI influx

is unrepeatable, totaling 2.8% of Poland's GDP in 2021 versus 1.8% forecasted for 2022. One can't forget that the market is undecided in terms of the GDP outlook, where investors' confidence in manufacturing and the global value chains remains weak. The market could rapidly swing to the low side once the liquidity dries up due to central banks tightening their monetary policies. We must also be reminded that major economies are heading to election season, infusing even more uncertainty in the market.

Poland will continue to benefit from its geographical location, leverage its multi-year infrastructure investments programs and expertise to expand its manufacturing capacity and play a leading role in helping Europe resolve the supplychain challenges. Poland will also continue to be a location of choice for businesses seeking nearshoring initiatives for services and manufacturing. Furthermore, expanding projects like the “Poland.Business Harbor” to Armenia, Azerbaijan, Georgia, Moldova, Russia and Ukraine will accelerate the migration of talents, attracting more foreign capital to invest in the pre-seed business.

However, the road ahead isn't easy or straight. Though Poland has been the preferred location for FDI for more than two decades, the country isn't alone in this race. A lot will depend on easing the administrative burden in launching a new business, stability in terms of policies, stable and lower taxation and continued investment in infrastructure and education system to keep the workforce relevant to market needs. It is also essential to consider the risk of a military escalation on the country’s eastern border, hindering investors' appetite for the Polish market.

WBJ.PL

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INVESTING IN POLAND

WBJ:

Last year, FDI in Poland, which benefited from government incentives, hit a record high of about €3.5 billion. Does all FDI go through PAIH? How do PAIH-generated investments compare against total FDI in Poland?

Krzysztof Drynda: As PAIH, we support projects of key importance for the Polish economy. Our goal is to increase the inflow of FDIs to our country. Of course, not all of them go through PAIH, but we are very active in this field, supporting the most important ones.

Last year, was a record year for us, foreign companies invested over €3.5 billion with the agency's support, which turned into the creation of nearly 18,000 jobs.

It is also worth noting that we do not fully supervise all projects. There are those in which we are involved from the beginning to the very end. Sometimes, however, we only participate in specific stages of the investment project, such as in the case of state aid or location consulting.

PAIH: BOOSTING POLAND’S ECONOMY Krzysztof Drynda, CEO, Polish Investment and Trade Agency (PAIH), highlights how the government agency aids the country’s economy.

INTEVIEW BY MORTEN LINDHOLM

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What is PAIH's main role?

The PAIH is an advisory institution operating in cooperation with the Polish Development Fund Group (PFR), under the leadership of the ministry of development and technology. We are the first point of contact for both exporters and investors. We operate in two ways, and our goal is to increase the inflow of foreign direct investments to the country and to increase the range and dynamics of the internationalization of Polish companies. We operate both in Poland and through a network of PAIH offices around the world. We promote the Polish economy: domestic products, services and technological solutions which are "made in Poland."

We offer quick access to comprehensive information on the economic and legal environment of the business projects. We also help in overcoming administrative procedures for specific projects, developing legal solutions, finding suitable locations as well as reliable partners and suppliers.

What countries or projects are key for PAIH? We do not focus on specific regions or sectors. We operate in two ways, promoting Poland as an investment region and Polish companies wishing to develop internationally. When it comes to investments, the largest number of projects that we are working on currently are from Belarus. This is undoubtedly due to our program called “Poland.Business Harbour,” which enables IT specialists, start-ups and small, medium and large companies from Belarus to relocate seamlessly to the territory of Poland. After the program's enormous success, we extended it last year to other countries: Armenia, Georgia, Moldova, Russia and Ukraine, and

recently, also to Azerbaijan. Investments in CEE are in line with Polish foreign policy. Thanks to them, Poland has a chance to lead the region, positively influencing its neighbors and supporting their economic development, especially in the field of new technologies.

Historically, most projects came from the US and Germany, but recently we have seen an increase in Asian investments, especially thanks to the development of Poland’s electromobility sector. In 2021, South Korea was the largest investor in terms of financial outlays, investing €1.9 billion in our country and creating 1,967 jobs. The next spots were taken by the US, with projects worth €363.91 million, and Germany, with an amount of €155 million. Most of the projects were in the BSS, R&D, electromobility, electronic automotive, construction materials and chemical sectors.

The same is true for exports. Every time, we carefully analyze the export potential of a given company, helping to choose its optimal expansion path abroad. We offer our support to all companies, regardless of the industry they operate in. However, it is natural, that we tend to focus on those sectors that are a particular Polish export specialty. For example, such sectors are BSS, automotive, gaming and aviation, wherein as many as five of the largest manufacturers of aircraft engines in the world have located their production in Poland.

What sectors are developing fastest in Poland?

Among the sectors currently characterized by the greatest potential are — apart from the service sector — industries related to energy, electromobility and automotive. For several years, we have been seeing an increase in the interest of foreign investors from these industries. We must not forget about the IT sector, which year to year continues to grow dynamically.

How does Poland compare to competing countries in terms of investments?

The development and promotion of investments, entrepreneurship and business are at the heart of PAIH's operations. In 2021 alone, we supported 98 investment projects worth over €3.5 billion, which contributed to the creation of nearly 18,000 jobs. This is in line with what was observed by UNCTAD, which reported that FDI flows increased by as much as 77% in 2021 after a disastrous 2020. Our goal, which we are consistently pursuing, is to increase the inflow of foreign investment.

We want Poland to become the investment center of our region and an example for other countries in CEE. I am all the more proud that last year was a record-breaking one in this respect. However, we are not slowing down and I hope that soon we will be able to announce further

INFO Investments in 2021 are up

€ 3.5 billion

compared to

€ 2.9 billion in 2019

&

€ 2.7 billion in 2020

Largest investors South Korea Germany USA Employing about

18,000 source: paih.gov.pl

successes, effectively supporting the development of the Polish economy.

What are your targets for 2022?

Despite the growing competition in terms of obtaining investments, we are optimistic about the future. I am convinced that at the end of the year we will be able to announce another record in terms of FDI. 2022 still carries the risk of uncertainty. Last year, supply chains that had not yet been rebuilt led to a crisis in the automotive industry. Therefore, our goal is to continue to actively promote Poland in the international arena. We want to present our country as the one taking over the role of the production center of Europe. We will also continue our efforts to attract high-quality investments from the most promising countries, such as South Korea, Japan and the US. What distinguishes us from other countries is our primarily young, well-educated people. We have outstanding specialists, which will certainly help us to attract investors from the industries of the future: electromobility, electronics and IT, which we will be focusing on in 2022.

Are there some specific areas in Poland — geographically and services — that you focus on?

Each region is equally important to us, both in terms of exports and investments. We do not focus on any of them, but there are differences in the interests of investors. In 2021, the greatest number of investment projects was attracted by the Mazowieckie region, where 27 projects are being implemented, Dolnośląskie with 15 initiatives, and Małopolskie and Śląskie — 10 projects each. When it comes to the value of investments, the Śląskie region is the undisputed leader, which is mainly due to, the high industrialization of the region. As for industries, as I have already mentioned, we primarily want to strengthen our presence in the sectors of the future.

Is PAIH also involved in helping Polish companies expand and invest abroad?

We are committed to promoting Poland and the Polish economy. We strive to increase the awareness of Polish brands on international markets. We promote domestic products and services. We help entrepreneurs choose their optimal path for foreign expansion and support them at every stage of entering a new market — from an in-depth analysis of export potential, through to the development of a detailed expansion strategy on selected markets and the development of lists of potential business partners, to support in contacts with the local administration and the organization of business missions.

WBJ.PL

37

ECONOMY INTERVIEW

38

FEB/MAR 2022 WARSAW BUSINESS JOURNAL

WAGE GROWTH MAY REACH

10%

IN 2022 Monika Kurtek, chief economist, Bank Pocztowy, spotlights expected inflation, pressure on wages and PLN performance in 2022.

INTERVIEW BY NIKODEM CHINOWSKI

WBJ:

Of all the macroeconomic indicators, the CPI, or inflation, attracts the most attention at present. What will the CPI path look like in 2022?

Monika Kurtek: Unfortunately, the path of inflation this year does not look optimistic, despite the two socalled “governmental anti-inflation shields” (in Polish: Tarcze antyinflacyjne). However, it is difficult to fully predict how inflation in Poland will develop due to the generally high uncertainty as to inflation processes in the world.

Perhaps, the highest reading of the CPI, exceeding 9.0% y/y, will be seen in January, as increases in energy and gas prices, excise taxes on alcohol and tobacco, or an increase in the minimum wage will be clearly noticeable.

In addition, we have a relatively low reference base from the corresponding period of 2020. But it is not sure what will happen with anti-inflation shields in second half of this year.

So in the second half of 2022 inflation will decrease?

The governmental shields that have been implemented are expected to function until the end of July, but we do not know what the political decisions will be later. Will energy and fuel taxes be fully restored from August? Will the tax rates return immediately to the levels they were in before the reductions? Or maybe the shields will be extended, and the tax recovery will be postponed and

>>>

WBJ.PL

39

ECONOMY INTERVIEW

gradual?

Depending on the answers to those questions, the inflation path in the second half of 2022 may look very different. In the scenario where everything is restored on August 1, we have a good chance of achieving a doubledigit CPI index, much higher than in January. If the shields tax reduction stays with us for longer, inflation should decline slowly, but with the emphasis on "slowly."

Of course, one should also remember about the already implemented interest rate increases by the Monetary Policy Council (MPC), and also take into account those increases that are expected to come. MPC decisions should also “keep inflation down,” and this effect should be the most visible in the second half of the year.

Summing up, the average annual CPI this year will most likely reach around 7.5% in the optimistic scenario, and in the pessimistic scenario, it may exceed even 9.0%.

To what extent will inflation be burdensome for Polish entrepreneurs? Is it not the case that it balances itself on the side of companies? In simple terms, I will buy more expensive, but also sell more expensive?

Undoubtedly, inflation affects the final recipients, i.e. consumers, the most. Indeed, entrepreneurs, in reaction to the rising prices of raw materials, energy, etc., increase the prices of their products and services. But at some point, the situation becomes very dangerous, because consumers are at the same time employees and go to their bosses with demands for salary increases. In this way, the so-called wage-price spiral appears which is very difficult to break and ultimately has negative consequences for both entrepreneurs and the economy as a whole. Unfortunately, it seems that this trend has just emerged in Poland. Therefore, the MPC will probably have to react stronger than previously expected.

If “stronger than previously expected,” how does Bank Pocztowy forecast the interest rate path in 2022?

The MPC raised interest rates three times in 2021, continued the increases in January and February this year, but it is definitely not the end yet. We are in the monetary policy tightening cycle and most likely another rate hike awaits us at the March MPC meeting. Depending on the inflation estimates for January and February, I expect an increase by 50-75bp, which means that the reference rate would then be at the level of 3.25% or 3.50%. Then we still have to expect increases in the third and possibly the fourth quarter. This means that at the end of 2022 the reference rate may be — according to my expectations — at the level of 4.00% to 4.50%.

To what extent will inflation put pressure on wages?

Already at the end of 2021, information appeared that workers here and there demanded wage increases due to inflation. At the beginning of 2022, this trend grew stronger and the employers themselves, for example, in the latest survey conducted for the National Bank of

40

FEB/MAR 2022 WARSAW BUSINESS JOURNAL

Poland (NBP), indicate that they are experiencing wage pressure that has not been seen for years. Moreover, they intend to raise salaries. Thus, wage pressure in the economy has been present for several months, but what is more worrying is that it is turning into wage and price pressure. For now, such conclusions can be drawn on the basis of the results of research among entrepreneurs.

We will have to wait a while for the data that will confirm this. However, it is extremely important to make decisions that will stop this trend as soon as possible.

“

The path of inflation this year does not look optimistic, despite the two so-called governmental anti-inflation shields”

What can employees' expectations be and will the wage growth in 2022 be similar to the inflation growth?

In the latest NBP survey on the economic situation, the share of companies forecasting an average wage increase in the next quarter increased to the highest recorded level. The majority of entrepreneurs (around 60%) assessed that the key factor in wage change is employee demands motivated by inflation.

The wage increases will probably not apply to all employees and will be different depending on the sector.

There are industries, such as the hotel, catering and transport, where employers have more and more problems finding employees. So, if they just want to retain their current staff, they will offer higher pay rises than in industries where such problems are much smaller or completely absent.

For the entire enterprise sector, I forecast the average annual nominal increase in average wages and salaries in 2022 by approximately 10.0%, i.e. more than in 2021 and above the forecasted inflation.

Main macroeconomic indicators 4Q 2020

1Q 2021

2Q 2021

3Q 2021

4Q 2021

GDP (y/y, %)

-2.5

-0.8

11.2

5.3

7.3

Inflation (e.o.p; y/y, %)

2.4

3.2

4.4

5.9

8.6

Unemployment (e.o.p; %)

6.3

6.4

6.0

5.6

5.4

Source: Central Statistical Office; www.stat.gov.pl

“

What other factors will be key in 2022 for the business environment operating in Poland?

There are a lot of these factors, both external and internal. The most important thing is the further development of the pandemic situation in the world, because it may have an impact on the economic situation of individual countries. On this, in turn, the availability of raw materials, components, goods and services will depend, and therefore, will continue to have an impact on price formation.

Funding conditions are likely to change, as several central banks in the world, including the NBP, started to tighten monetary policy last year, and this year will probably be joined by more central banks, including the US Fed and maybe the European Central Bank (ECB). For Polish entrepreneurs, it will certainly be important how the “Polski Ład” — a very large-scale tax reform — will continue to function and whether we will receive EU funds under the National Reconstruction Plan (in Polish: Krajowy Plan Odbudowy), which would allow the economy to start investments.

Finally, a question about the strength of the Polish currency, złoty (PLN). What factors, both internal and external, will have the main influence on the behavior of PLN? The internal ones will include, above all, decisions of the MPC regarding interest rates and problems between Warsaw and Brussels. External factors include the development of the pandemic situation in the world, the actions of the largest central banks — mainly the Fed and the ECB — and central banks of our region, like those of Hungary and the Czech Republic, and the threat of Russia's invasion of Ukraine.

What will the EUR/PLN and USD/PLN exchange rates be like in 2022?

PLN remained relatively weak in 2021, taking into account the foundations of the Polish economy and the commenced tightening of the monetary policy by the MPC. So PLN definitely has space to consolidate.

Thanks to, for example, the expected further increases in interest rates, the EUR/PLN exchange rate should run around 4.50 on average in 2022, and at the end of the year even around 4.40. A more marked strengthening of PLN will probably not be allowed

by Poland's conflicts with the EU, while the threat of an armed conflict in Ukraine is also a significant obstacle at the moment.

When talking about the USD/PLN exchange rate, the decisions of the Fed, which will strengthen the USD, will be very important. On the other hand, the ECB at the last meeting also signaled the possibility of rate hikes this year, which in turn should strengthen the EUR against the USD. In this situation, I expect average USD/PLN quotations of around 4.00 in 2022, and at the end of the year around 3.95.

The most important thing is the further development of the pandemic situation in the world, because it may have an impact on the economic situation of individual countries”

1Q 2022

2Q 2022

3Q 2022

4Q 2022

GDP (y/y, %)

4.4

4.1

3.7

3.9

Private Consumption

4.5

3.4

3.0

3.3

Investments

7.5

5.0

6.0

7.0

Inflation (e.o.p; y/y, %)

8.5

7.7

7.5

6.2

Unemployment (e.o.p; %)

5.3

4.7

4.6

4.7

Bank Pocztowy outlook on Polish economy for 2022 and 2023 1Q 2023

2Q 2023

3Q 2023

4Q 2023

GDP (y/y, %)

3.7

4.5

4.6

4.6

Private Consumption

3.1

3.1

3.2

3.3

8.0

7.0

5.0

4.5

Inflation (e.o.p; y/y, %)

6.8

7.2

6.2

6.0

Unemployment (e.o.p; %)

4.8

4.2

4.2

4.3

Investments

Source: Bank Pocztowy

WBJ.PL

41

ECONOMY OPINION

WHAT DOES WAR MEAN FOR POLAND? SANCTIONS AGAINST RUSSIA OVER THE WAR IN UKRAINE HAVE HIT ITS ECONOMY HARD, BUT THE CONSEQUENCES WILL EXTEND BEYOND THE TWO COUNTRIES.

BY ANNA RZHEVKINA

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FEB/MAR 2022 WARSAW BUSINESS JOURNAL

“

Grocery and fuel prices are rising.

In April, we will have inflation at around 10%

4% GDP dynamics this year seems to be very optimistic and unlikely at the moment,” they conclude.

‘WAR MEANS INFLATION’ Polish złoty (PLN) reacted relatively calmly in the first days of invasion but later recorded heavy losses against the world’s major currencies. In early March, it hit PLN 4.8 mark versus the euro/€, the highest in thirteen years. Frightened by uncertainty, investors seek to move from risker currencies to safehaven assets, such as the US dollar/$ and Swiss franc/CHF. "There is a serious risk-off in the markets," Bank Pekao economists wrote on Twitter.

Shortly after the PLN’s dramatic fall, the Polish central bank (NBP) had to intervene in the foreign exchange market. The NBP added that złoty’s depreciation was not coherent

SHUTTERSTOCK

P

oland faces the risk of GDP growth slowdown, further inflation, national currency weakening and outflow of international investors.

Poland’s economic growth rate in the fourth quarter increased by 7.3% year-on-year, according to its stats office (GUS) data. This is a figure that may be hard to repeat in the near future. ING Bank economists already cut their GDP growth forecast for 2022 by 1.3 percentage points to 3.2%. “We are dealing with an unprecedented increase in uncertainty and the prospects for economic growth in Poland and Europe have clearly worsened,” they said.

Among key risks, ING names the collapse of foreign trade with Russia and Ukraine, and gloomy consumer moods, resulting in weaker domestic demand. “The scenario of

Russia's share in Poland's foreign trade (%) with the situation in the Polish economy and assured of having adequate currency reserves to counteract the currency’s fluctuations.

Poland’s weak national currency accelerates inflation, which is already among the highest in Europe. “War means inflation.

Grocery and fuel prices are rising. In April, we will have inflation at around 10%,” Piotr Arak, director of the Polish Economic Institute (PIE), told private broadcaster RMF FM. The prices of wheat have already climbed to the highest level in over a decade as markets worry about supply chain disruptions.

Russia and Ukraine together supply almost a third of global wheat exports, and other exporters, such as the US, Argentina and Australia, face low inventories. The prices of bread in Poland may soon double, Monika Piątkowska, president of the Economic Chamber of Trades, Grain Processors & Feed Manufacturers, has warned.

ENERGY AND METAL PRICES JUMP High commodity prices are among the key concerns as Europe has been struggling with rising energy prices since last year.

Even though Poland has been readying itself to cut its dependence on relatively cheap fossil fuels from Russia, for now, it relies on Moscow for about two-thirds of its coal, 65% of its oil and 55% of its gas, according to Forum Energii think-tank.

In the first days of March, prices for oil have jumped to $100 per barrel. Polish consumers feel the consequences. At Orlen petrol stations in Warsaw, diesel prices have reached PLN 6 per liter. European gas prices hovered around €100 after hitting a €132 milestone on February 24, the first day of the war.

Prices for metals, such as gold, nickel and palladium also spiked after the European countries agreed to penalize Russia’s central bank and exclude some Russian banks from the international Swift messaging system.

Russia’s palladium producer Norilsk Nickel in 2021 accounted for about 40% of the global supply of the metal used for car parts and medical equipment.

Major Polish banks, such as Pekao, mBank and ING Bank Śląski, suspended transactions in Russian roubles (RUB).

13.9

15.0 9.6

10.0

7.1

5.0

3.9

0.0

4.4 4.3

8.6

9.7

8.5

4.6 5.2 3.7

11.9

10.1

10.1 7.1

5.4 5.3 4.2 4.5

4.2

5.7

6.2

7.0

2.9 2.8 3.0 3.0

6.0

4.4

5.8

3.0

2011

2012

2013

2014

2015

Export

2016

2017

2018

2.8

2019

Import

Source: GUS, Eurostat, Credit Agricole

DEMAND AND SUPPLY SHOCK In 2021, Russia was the seventh-largest recipient of goods exported from Poland and the third-biggest importer to Poland. The shares of Poland's trade with Russia in total exports and imports of goods amount to 2.8%

“

We are dealing with an unprecedented increase in uncertainty and the prospects for economic growth in Poland and Europe have clearly worsened

(€8.0 billion) and 5.8% (€16.7 billion) respectively. This is higher compared to Ukraine with 2.2% and 1.1%, respectively, according to a Credit Agricole report.

The war in Ukraine is an example of a simultaneous demand and supply shock.

On the one hand, there is a sharp decline in exports to Ukraine and Russia and a slowdown in investments. On the other hand, prices are rising and the economic activity is declining, Credit Agricole analysts explained.

The total cut of export from Russia and Ukraine would reduce Polish GDP by 2.5 percentage points, they estimated.

Higher prices of gas stimulate a further increase in fertilizer prices and this accelerates grain prices. Credit Agricole warned that food and non-alcoholic beverage prices can show double-digit growth in 2022.

The uncertainty weighs on Polish companies’ moods that have begun to limit expenses and suspend hiring, according to the Polish Union of Entrepreneurs and Employers (ZPP). Its recent survey showed that as many as 67% of Polish firms expect an economic downturn in the next six months.

At the same time, the NBP attempted to reassure investors, saying that despite the increased uncertainty and rising commodity prices, Polish economic growth would remain strong.

WBJ.PL

43

FEATURE IMPORT/EXPORT

POLISH-US TRADE STILL GOING STRONG

RAKING IN BILLIONS OF DOLLARS, THE BILATERAL TRADE HAS BEEN PROSPERING AGAINST ALL THE ODDS. BY ELIZA PRZEŹDZIECKA

44

FEB/MAR 2022 WARSAW BUSINESS JOURNAL

Pic. 1. Poland-US trade in goods in 2010-2021 ($ million) Export Millions USD

Import Millions USD

11% Average annual increage in exports

3694

3604

2873

2010

2011

5497

4996

4762

4430

2012

4842

2013

5387

4854

2014

10,500

8% Average annual increage in import

5153

4468

2015

5505

9000

7922 7284 7616 7318 7334 6140 6458

7904

4810

2016

2017

2018

2019

2020

2021

Source: based on UN Comtrade Statistics (2010-2020), Statistics Poland (2021).

SHUTTERSTOCK

P

olish-US trade in goods amounted to $19.5 billion in 2021 and was higher by a quarter than the previous year. Such a significant increase in the time of turbulence on the markets, rising transport costs, and problems with the availability of raw materials and semi-finished products seem particularly interesting since these markets are separated by over an ocean. Polish exporters, disregarding the distance and fierce competition on the US market, consistently develop their competitive advantages offering both components and consumer goods.

Since 2010 Polish exports to the US have grown by 10% annually, which is four points higher than the total Polish export growth rate in this period. In 2021, the value of Polish exports of goods to the US reached $9 billion and grew remarkably — by 24% compared to the previous year.

The US is now the ninth market for Polish exports and the first non-

European recipient of Polish manufactured goods. The growth rate of Polish-US trade observed for over a decade also confirms that although the current turbulence in the global economy has significantly limited bilateral trade relations worldwide, the American market represents opportunities for Polish exporters.

The latest report by the Polish Economic Institute (PIE) designates the US as the most prospective market for Polish exporters. The PIE has defined this market as one that may create above-average sales opportunities for Polish goods in the next five years. Thanks to its size and high growth dynamics, the American market took the top position.

The year 2022 has gotten off to an auspicious start for the US economy, with GDP rapidly recovering from the pandemic. Incomes and employment are still growing and the preliminary results show US GDP growth of 5.7% in 2021 would be the strongest in the last 37 years.

The statistics from last year are expected to be published within a few months, but we may see some interesting insights on the structure of Polish exports to the US based on existing data. The most important export goods to America have invariably been machinery and mechanical appliances, nuclear reactors, boilers, including parts, covering over one-third of Polish exports to the American market. Export of this category has increased fivefold since 2010 due to the specialization of Polish suppliers of intermediate goods in the aviation and automotive sector.

In the presented group of goods that constitute Polish export specialization to the American market, we have traditionally ranked first in parts of turbo-jet or turbopropellers engines, whose sales value in the US amounted to $778 million in 2020. Exports in this product category have increased over the last three years by 82% and the US market takes half of the total Polish exports of these products.

>>> WBJ.PL

45

FEATURE IMPORT/EXPORT

The list of Polish exports draws attention to the second position of the most popular products from Poland, i.e., units of automatic data processing machines. This group may include portable computers and processors and disks for computers. Poland is currently the most prominent European supplier of these goods to the US market — in 2020, the export value of these devices amounted to nearly $600 million, which was only a fifth less than

the sales of Chinese manufacturers in the United States.

Likely, the increased interest of the American consumer in Polish computers, processors and servers can be explained by the high duties on Chinese imports to the US market. In this group of goods, the import duty from China in the US is 40%. Products in this category originating from the EU (including Poland) are not subject to tariffs in the United States.

Pic. 2. Industrial products in Polish export to the United States – export specializations Share in total Polish export to the U.S., %

Parts of turbo-jet or turbo-propeller engines

10.6%

Digital process units*

7.8%

Hearing aids (excluding parts and accessories

Share of Polish suppliers in the U.S. import, %

Poland on the list of suppliers to the U.S. market

Annual growth in value between 2016-2020, %

#7

14%⇧

1.8%

#4

399%⇧

5.2%

24.5%

#1

106%⇧

Wooden furniture, other than for office, kitchen or bedroom use

2.1%

1.7%

#10

104%⇧

Silver in unwrought forms

1.9%

4.5%

#6

9%⇧

Source: based on UN Comtrade Statistics, International Trade Center (ITC) Trade Map.

Note: * Processing units for automatic data processing machines, whether or not containing in the same housing one or two of the following types of unit storage units, input units, output units (excl. those of heading 8471.41 or 8471.49 and excl. peripheral units).

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FEB/MAR 2022 WARSAW BUSINESS JOURNAL

IMPORT

Last year, US manufacturers delivered to Poland goods worth a total of $10.5 billion. This value corresponds to 3% of the total value of Polish imports and ranks the United States in 8th place on the list of importers.

The imports from the US to Poland grew slightly slower

than Polish exports to the American market during the analyzed period. The differences in export and import dynamics are also noticeable in the long-term perspective, resulting in a decreasing deficit in the Polish-US trade in goods.

The main commodity group imported to Poland from the US in 2020 is pharmaceutical products. The most important among them are immunological products, which currently hold the top position by import speciali-

zation — 9.6% of the total value of Polish imports. This value was reached due to the Covid-19 vaccines imports.

Turbo-jet engines and parts of turbo-jets and turbopropeller engines are second and third on the list of products import specialization. These two types of goods together account for 11.5% of Polish imports from the US. It also confirms our developing specialization in the aviation sector, which needs deliveries of components.

Pic. 3. Polish import of industrial products from the United States – import specializations

Immunological products, in measured doses Turbo-jet engines of a thrust >25kN

Parts of turbo-jet or turbo-propeller engines

Aeroplanes and other aircraft*

Commodities no specified according to kind

Share in total Polish import to the U.S., %

Share of U.S. suppliers in the Polish import, %

U.S on the list of suppliers to Poland

Annual growth in value between 2016-2020, %

9.6%

n/a

#6

14%⇧

6.3%

85.0%

#1

67%⇧

5.2%

46.3%

#1

4%⇧

3.5%

60.0%

#1

6%⇧

2.2%

7.5%

#4

86%⇧

Source: based on UN Comtrade Statistics, International Trade Center (ITC) Trade Map.

Note: * unladen weight exceeding 15,000 kg.

Polish exports to the US have been affected relatively little by the recent crisis so far. However, it is highly

probable that in the long run, the significant shortening of supply chains and focusing on near-distance suppliers, as well as the continuing US-China trade conflict will positively influence the development of Poland-US bilateral trade relations.

WBJ.PL

47

Talking Points

48

FEB/MAR 2022 WARSAW BUSINESS JOURNAL

‘A GUARANTOR OF DEMOCRACY’ The Senat – the upper house of the Polish parliament – is not an experiment, emphasizes Tomasz Grodzki, speaker (in Polish: marshal) of the house, adding that the parliamentary chamber is one of the key cornerstones of Poland’s democracy.

INTERVIEW BY EWA BONIECKA

SHUTTERSTOCK

WBJ: Is Senat’s existence

really necessary in the current Polish legal order? Or is it just an "experiment?"

Tomasz Grodzki: The upper chamber of the Polish parliament is not an experiment.

It is one of the foundations of the tripartite division of power in Poland and a guarantor of our democracy.

For over two years now, ever since the Senat has been in the hands of a democratic majority, it has also been a fuse of Polish democracy and the only institution fighting to uphold the rule of law, human rights and inherent dignity of the human being.

It is a place where we listen to citizens, where we work on laws in-depth and do not pass them through some kind of quick legislative process, as it happens in the Sejm, lower house of the Polish parliament.

The upper house is inscribed in Polish history

and tradition and only the communists had the courage to raise their hand against it in a falsified referendum. I am deeply convinced that if it were not for the Senat, much of the vile behavior of this compromised government would have never seen the light of day, as evidenced, for example, by the work of the special committee dealing with the Pegasus surveillance system.

The upper chamber does not have a decisive influence on politics in Poland today. Do you think that its prerogatives should be strengthened?

I fundamentally disagree with the opinion that we have no influence on politics.

Thanks to us, the illegal “postal elections” led by Jacek Sasin were stopped. It was the Senat that rejected the original five animal protection laws package

and as a consequence of our decision, this law did not enter into force in its original shape. It was thanks to us that the first media reform bill was rejected.

Finally, it was the Senat that exposed the true intentions of the ruling party, when we proposed to allocate PLN 2 billion for oncology rather than for the [alleged government mouthpiece] TVP. But the Sejm did not agree to this — it preferred to finance propaganda instead.

But if you ask about the prerogatives of the upper house, yes, I believe that they should be strengthened, if only in terms of the legislative initiative of the parliamentary chamber. In the current term, we have sent to the lower house several dozen bills, which were put on the back burner by Sejm speaker Elżbieta Witek for political reasons.

When a bill comes from the

>>>

WBJ.PL

49

Talking Points

50

house. There is no discussion on them in the lower house, they are often voted on as one block. The MPs don’t even have the time to analyze them — what counts are political considerations and not substantive ones.

The Sejm should treat the works of the Senat with the same seriousness as we treat the bills that come to us from the Sejm.

Is there any figure or person in the history of the upper parliamentary chamber who is an authority for you?

FEB/MAR 2022 WARSAW BUSINESS JOURNAL

It is an honor and pride for me to be able to head the upper house that in the past was led by such great figures as speaker Wojciech Trąmpczyński or Andrzej Stelmachowski — the first speaker of the Senat established in the aftermath of the free elections in 1989.

I treat their legacy as an obligation to work hard for the benefit of all senators.

The upper house works in a radically different way than the lower house. Although the temperature of disputes is sometimes high, it never

exceeds the limits of parliamentary culture. We argue, we discuss, we are open to arguments. Please note that many bills are passed in the Senat with 100 votes in favor [the upper chamber consists of 100 senators], so we are able to agree on many issues.

What are the competencies of the Senat chancellery?

The chancellery provides substantive, organizational and technical support for senators and performs its tasks very well. Many

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lower chamber to the upper chamber, we have 30 days to deal with it. There should be the same symmetry for our legislative initiatives. At present we have such a situation that when the government finds our draft law convenient — for example in the case of pensions for people born in 1953 — they take it, add to it something of their own and then treat it as their own success. This should not be the case.

The same is true in the case of amendments to bills submitted by the upper

The Senat is one of the foundations of the tripartite division of power in Poland and a guarantor of our democracy

people who work there created the office when the upper house was reborn after the elections in 1989 and they are very devoted and committed to it. Each office is made up of an excellent team of specialists, whether in legislation or international affairs. All are important to us. Senators are aware that with the support of such professionals, they can perform their mandate well.

Back in 1920, Poland became a member of the Inter-Parliamentary Union.

Within its framework, the then upper chamber inaugurated international contacts. How are these contacts being developed today?

In the current term, for the first time inter-senatorial cooperation groups were established: Polish-German and Polish-Czech, in addition to the already functioning inter-parliamentary groups involved in cooperation between Sejm deputies and senators. This proves how important relations with our neighbors and the upper houses of the parliaments of these countries are to us.

I am honored that I had the opportunity to talk to Roberta Metsola twice before she became president of the European Parliament.

Many presidents or prime ministers visiting Poland also visit the upper chamber to get a different view of the situation in our country than that of the ruling party. Despite the raging pandemic, we managed to organize several visits at the highest level of parliamentary presidents. And the Polish-Lithuanian-Ukrainian parliamentary assembly deliberated in the Senat.

I have good and regular contacts with many ambassadors accredited to Poland. We also try, which is very important for us, to keep in touch with the Polish expatriate community, as the Senat has been the guardian of the Polish diaspora since 1989. And although the government has taken money away from us for this purpose, we try to support Polonia in other, non-material ways. I was particularly moved by the recent visit of a Senat delegation to Kazakhstan, where we met with Poles exiled to that country and their descendants. This is a very important part of our work.

Do you think, “the father of Polish democracy,” Andrzej Frycz Modrzewski’s views — honesty of manners, conscious social and political attitudes — haven’t lost any of their relevance in

today’s Poland?

Thank you for invoking Modrzewski, whose thoughts and legacy are particularly important to me. In my first speech just after I was elected speaker, I recalled his motto that "the Senat is what inspires other authorities to noble actions, dissuades them from dishonest ones and cools their passions." Modrzewski was a visionary who was ahead of his time. His concern for the fate of the Republic should be a model for all, as love for one’s homeland is always the same, regardless of changing centuries, events and historical circumstances.

In 1921, after regaining independence, the March Constitution restored the upper chamber, and in 1922, the head of state, Józef Piłsudski, performed its ceremonial inauguration.

This year marks 100 years

since that event. We have a lot to be proud of. And yet, the National Bank of Poland (NBP) refused to mint a commemorative coin for that occasion. Will the Senat be able to celebrate this anniversary?

We have already begun celebrations of this special anniversary, inaugurating them with a scholarly conference devoted to the place and role of the upper chamber in the evolution of the functions of the parliament — from tradition to the present day.

We are working on the next elements of this important year for us. Unfortunately, we are limited by the pandemic, so many events will probably be different from what we have planned. For the Senat, however, this will certainly be an exceptional time, full of pride in our predecessors and a feeling of honor that after 100 years we are fulfilling the mandate of senators of the Republic of Poland.

Tomasz Grodzki is a Polish politician and has served as the speaker (in Polish: marshal) of the upper house (Senat) of the Polish parliament since November 2019. He belongs to the Civic Coalition (KO), Poland’s largest opposition alliance.

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Talking Points

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THE OUTFLOW OF UKRAINIAN WORKERS IS UNLIKELY Evgenij Kirichenko, Gremi Personal work agency founder and CEO, tells the WBJ how employees from Poland’s neighbor in the east assess the Polish labor market and what wage growth they expect in 2022.

INTERVIEW BY NIKODEM CHINOWSKI

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WBJ: Are workers from

Ukraine, Moldova and Georgia still looking at the Polish labor market with interest?

Evgenij Kirichenko: Yes, the Polish labor market is still attractive for workers from Ukraine. As a work agency, we have not had such a busy January since the pandemic’s beginning. Just in the first weeks of 2022, we have observed an approx.

40% increase in recruitment compared to the same period of the previous year.

It is difficult to say whether the threat from Russia is the decisive factor, but rather the important one.

We expect that in the coming months there may be

another wave of employees from Ukraine looking for employment in Poland. Considering how the situation in Ukraine might develop, we’re set to open two additional offices in Odessa and Kharkiv in early February. They are to support the recruitment process in the six eastern and southern regions of Ukraine.

And what about those who already work in Poland? Is there a risk that our economy will lose as they will move further to Germany or the Netherlands?

As for further labor migration, according to our own research, 54.1% of Ukrainians working in Poland are interested in the opportunity

to work in other EU countries. Especially in Germany (59.8%) and Scandinavia (42.5%). But on the other hand, what is most important, 43% of them are “just considering” such a possibility and only 4.2% are “already making some moves.”

This disparity between interest and concrete action takes place because the procedure for obtaining a German work visa requires considerable effort and time. In addition, German employers often seek employees with knowledge of the German language, which is also an obstacle for many Ukrainians who have the opportunity to get a job in Poland without much effort.

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Talking Points In which countries are you most interest in working, other than in Poland?

59.8% 42.5% 26.2% 24.5% 20.2% 17.8% 17.6% 12.7% 7.5% 3.8% 2.2% 5.6%

Germany Scandinavian countries Czech Rep. Canada USA Italy The United Kingdom Spain Portugal Other Russian Federation Hard to say/Don't know

The main advantage of working in Poland 80.6% 27.9% 25.4% 23.8% 21.8% 21.7% 17.2% 14.2% 13.2% 10.5% 5.5% 5.2% 0.9% 0.6% 1.5%

Higher wages than in Ukraine Stable economic situation in Poland Possibility of obtaining permanent resident permit Terriorial proximity Easier to get a job than in any other EU countries Lack of language barrier Better personal and professional prospects Cultutal proximity Members of my family are in Poland Stat political situatino Easier to get a job with professional experience in Poland Prospect of starting higher education None of the above Other Hard to say/Don't know

Source: Gremi Personal

So in my opinion, it is now unlikely to expect a large outflow of Ukrainian workers to Germany or further. But if any other country of their interest offers loyal conditions for access to its own labor market, Poland could significantly lose Ukrainian labor, which is currently an important component of the Polish economy. And this remains a key challenge for the country.

Do the migrant workers expect higher wages in 2022?

It’s very difficult to forecast

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exactly how the situation will develop. It depends on many economical and political factors, not only in Poland. Both employers and employees feel the effects of current inflation. Employers are aware of the need to raise salaries.

But their other costs are rising too, mainly due to the dramatic increase in energy prices. As an employment agency, we have a big challenge to find a fair balance between the two interests.

Anyway, wages in Poland are growing gradually. From January 2022, the minimum

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wage increased by PLN 210 and amounts now to PLN 3,010 gross, the hourly rate grew up to PLN 19.70 gross.

This results in an increase in the average rate too. And this also applies to workers from Ukraine since there is no wage discrimination in Poland. And, compared to Ukraine, wages in Poland are still attractive for migrant laborers.

But I presume that wages are not the only factor that makes your offer — to work in Poland — attractive in Ukraine?

That is true, in the case of employees from our neighbors in the east, non-wage issues are also important. Requirements for the comfort and quality of life in Poland are constantly growing. We provide our workers with the support of a bilingual coordinator and access to a hotline, we pay extra for renting apartments, we help with their integration in Poland and upskilling, we award scholarships for gifted children of our employees. All these are important for an employee: no less important than salaries.

When it comes to the profile of employees from Ukraine looking for a job in Poland, do we have any changes here over the past years?

According to our research “The Pulse of Labor Migration,” 48.5% of migrants are men and 51.5% are women.

We observe a moderate tendency to increase the share of women in the structure of economic migration — there was an increase by 3% compared to 2020.

The average age of Ukrainian labor migrants is 33-34. The age of a third of respondents (36%) is below 30 years, another 28% are 30-39-year-olds. Overall, 26.1% of the respondents are 40 or above. This data shows a stable trend where the youngest section of Ukrainian society leaves their country.

As many as 48% of all the migrants have finished technical or specialized secondary school and 28.4% hold higher education degrees. Before coming to Poland, 25% did physical work and 28% worked in the service sector, where 15% of them were employed in administration and another 10% were managers.

We are also observing a growing trend of relocating to Poland with whole families. The number of foreigners buying real estate in Poland or setting up their own businesses is growing too. They come first as blue-collar workers, integrate and decide to start their own companies.

Are there any particular industries that may suffer from a shortage of Ukrainian workers in 2022?

There is currently a shortage of workers in almost every industry: transport and logistics, processing and trade, as well as in the hospitality sector. Last year, Gremi Personal recorded a 30% increase in recruited employees from our eastern neighbors, while the demand for them in Poland increased by as much as 90% compared to 2020.

We see a great unsatis-

fied demand on the market and so far there are no signs that this trend will be reversed. Conversely, if earlier every January and February were a lull period with about 300 open vacancies for our clients, today there are five times as many.

So how does Poland currently attract more workers?

According to our latest research, the three main advantages of working in Poland for Ukrainians are: a higher level of wages compared to Ukraine (80.6%), a stable economic situation in Poland (27.9%), and the ability to obtain a relatively easier work visa or a temporary residence permit than in other EU countries (25.4%). The other advantages are geographical proximity (23.8%), the ease of finding a job here (21.8%), and the ease of learning a local language (21.7%).

And what about the near future? How do you assess the risk that certain factors may disrupt the involvement of Ukrainians in the Polish economy?

As for now, we are closely monitoring the situation on the Russian-Ukrainian border. And the situation with Covid-19, of course.

Possible sealing of the EU's external borders in case of the next wave of the pandemic may be a great challenge. In 2020, in order to meet customer needs, we were forced to quickly introduce various nonstandard solutions. We are the only company in Poland that has carried out several

*Update We are not yet in a position to assess the consequences of the Russian military invasion of Ukraine. In 2014-2015, warfare activities caused an exponential increase in migration from Ukraine to Poland. According to the data of the National Bank of Poland, before 2014, the number of declarations of willingness to entrust work to a foreigner registered by Polish employers amounted to approximately 200.000 annually. In 2014 there were 390.000 such declarations, of which 370.000 for Ukrainian citizens, while in 2015 these values amounted to accordingly 780.000. and 760.000. The number of work permits also increased in a similar way.

However, the current wave of migration, the beginning of which we have observed since the 24th of February, will no longer be a labor migration, but an escape from the war. The reason for this is the much larger scale of the military invasion, which covers almost the entire territory of Ukraine. We receive many reports from our employees that ensuring the safety of their loved ones is now the most important thing for them. Due to this, but also due to the martial law and restrictions on the departure of men under military obligation from Ukraine, we expect an increase in the share of women in the migration structure.

We have been operating in a crisis mode since the 24th of February, we do not lose contact with our offices in Ukraine and we monitor the situation on an ongoing basis, including the situation on the border with Poland. We do everything we can to fulfill our obligations towards clients, employees and partners.

We are currently focusing on supporting our employees and female workers from Ukraine and ensuring the safety of their families. Likewise, we are also ready, using all our experience, to actively cooperate with the authorities and local governments in the current situation.

charter flights for our employees, and later launched permanent bus connections and quarantine centers for foreigners. We are now using the experience gained then to prepare for the possible consequences of the Omicron variant and [Russian President Vladimir] Putin’s actions.

Gremi Personal is a Poland-based employment agency specializing in hiring foreigners for the Polish job market.

Evgenij Kirichenko is the agency’s founder and CEO.

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TECH i n s i g h t s TECH NEWS Facebook bans far-right party Facebook has blocked the account of Konfederacja, a Polish far-right party with 11 MPs, for repeated breaches of its rules on hate speech, and disinformation about Covid-19. The party's account was removed recently and Facebook also informed Poland's digitalization ministry about its intentions to take down the page. According to Facebook, the party used its social media account to publish content that "directly attacked other people... on grounds of nationality or sexual orientation." The account was also a medium for spreading false information about the coronavirus pandemic and Covid-19 vaccines, Facebook said.

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TECH

INTERNET

T-Mobile switches off 3G INFORMATION

‘Fejkoodporni’ campaign launched Poland’s defense ministry inaugurated a social campaign under the slogan "Fejkoopporni." It deals with the dangers of disinformation and fake news. Defense Minister Mariusz Błaszczak participated remotely in the inauguration of the campaign at the War Studies University (ASzWoj) in Warsaw, due to the fact that he was infected with the coronavirus.

“Disinformation is one of the greatest threats today. Although it is not a weapon in the traditional sense of the term, it is equally dangerous,” Błaszczak said.

MEDIA

TV broadcasting new standard In connection with the new digital terrestrial television broadcasting standard introduced in 2022, the government will pay an additional PLN 100 for the purchase of an appropriate set-top box, envisages a project supported by the government. It will be possible to submit the application for the payment online or send it by the Polish state postal administration. The Government Information Center (CIR) recently informed that the government adopted a bill on supporting households in bearing costs related to changing the standard of digital terrestrial television broadcasting. This year there will be a change in the method of broadcasting digital terrestrial television by replacing the existing DVB-T/MPEG-4 system with a more effective DVB-T2/HEVC. The introduction of this change is manda-

T-Mobile Polska is starting to completely disable 3G technology in the commercial network to accelerate data transfer in LTE and 5G networks, the operator has said. The shutdown of 3G over a large coherent area of ​​the commercial network is most likely the last test before the mass shutdown of 3G across the entire commercial network of T-Mobile.

“T-Mobile plans to allocate the frequencies in the 900 MHz range recovered in this way to increase the speed obtained by customers in LTE and 5G networks and their capacity. Regardless of the decision in this regard, allocating the free bandwidth to more popular technologies may translate into an increase in transmission speed,” the press release announced. The shutdown of 3G networks is a natural step in the development of mobile communication technology.

CYBERSECURITY

Poland's audit office hit Poland’s Supreme Audit Office (NIK) has been subject to over 6,000 attempted online attacks with Israelideveloped Pegasus spyware affecting more than 500 devices in the past two years, a spokesperson has said. The head of the NIK is a longtime critic of Poland’s ruling, right-wing nationalist Law and Justice (PiS) party. Reports by the Associated Press that NSO Group’s Pegasus software was used to hack the phones of government critics, including a senator for the largest opposition party, have drawn accusations that security services are eroding democratic norms.

INTERNET

5G network stuck Work on cybersecurity regulations has been going on for about a year and a half, and operators still do not know whether they will be allowed to cooperate with Huawei. After a momentary acceleration, the draft amendment to the Act on the National Cybersecurity System (KSC) stalled again. It has been underway since September 2020 — work on it has been started by the digitalization ministry, and now the prime minister's office is continuing it.

GAMING

IEM Katowice continues Intel Extreme Masters — an international esports tournament — has tweeted that IEM Katowice would continue despite the ongoing Russian invasion of Ukraine. Organizer ESL said it would continue to monitor the situation. “We are closely monitoring the situation in Ukraine. Our current priority is to support the players, the talent and the staff who may be affected by it. The SC2 & CSGO tournaments will continue as planned,” the tweet states. Russian President Vladimir Putin announced a military operation in Ukraine on February 24. A battle is underway for control of Ukraine's capital, Kyiv, as Ukraine's outnumbered military continued to hold back the invading Russian forces in multiple locations. IEM Katowice 2022 ran from Feb 25-27.

Curated from: cnn.com, pap.pl, reuters.com, technologia.dziennik.pl, telepolis.pl 58

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tory throughout the European Union.

“The government wants to subsidize the purchase of a set-top box for a TV set for the poorest people, which will enable the reception of free digital terrestrial television in a new standard,” CIR claimed.

PA R T N E R H I G H L I G H T S

THINK GLOBALLY, ACT LOCALLY

IT SOLUTIONS FOR THE NEW ERA OF HR

ILLUSTRATION BY SHUTTERSTOCK, PHOTOGRAPH COURTESY OF THE AUTHOR

HOW CHALLENGING DID IT BECOME TO MANAGE PERSONNEL? WHILE THE RISE OF REMOTE WORK BROUGHT A MYRIAD OF POSITIVES, NEW ISSUES HAVE APPEARED. EMPLOYEES HAVE ADAPTED TO THE NEW SITUATION AND NOW THEY ARE EXPECTING HR PROCESSES TO ADJUST TO THE DIGITAL TRANSFORMATION, OFFERING THEM EFFICIENT PERFORMANCE IN THE DIGITAL WORKPLACE. THESE CHANGES AFFECT EMPLOYERS AND BUSINESSES IN SEVERAL WAYS AND RESULT IN THE GROWING ROLE OF IT IN THE HR DEPARTMENTS. BY IWONA KUBISIAK

A

s our clients observe these challenges, technology can just be the right answer.

Change in the use of IT systems by employees, due to performing work remotely determined the need to support the maximum number of processes by IT systems.

MAKING LIFE EASY

While work from anywhere focuses on owning results, it requires decentralization of many tasks and introducing selfservice functionalities to HR systems.

Companies use HR cloud solutions to make everyday tasks easy for employees, like submitting requests or managing reports. The number of processes handled by personnel via IT systems is increasing. However, all

the self-service applications and tools must be user-friendly and available on all devices. New generations of employees simply expect a great user experience when using the company’s tools. Also, core HR and payroll processes and talent management solutions must be simple, streamlined and adaptable to changing business needs.

Thanks to SAP solutions, which we implement and maintain, applying for and acceptance of absences, allowing for and accepting applications of various types, including requests for training, company social benefits, business trips can be done by employees themselves. At the same time, SAP Fiori places user experience and work ergonomics on the top of the priority list.

Our customers — large international companies — need their processes to be both automated and adjusted to local markets and labor codes. They must now also manage diverse regulations regarding safe return to work as well as vaccination status. These, together with the changing labor policies and tax regulations, like currently in Poland, mean that HR processes are not only time-consuming but also critical.

That means enterprises cannot implement a one-fit-all solution for their SAP HCM systems and HR Fiori Portals in the areas of Human Resources-PA, Payroll-PY, Working Time-TM/PT, Organizational Structure-OM, Business Travel-TRV, Reporting, Portal Employee Self-Service-EP (ESS/MSS). They need country-specific solutions. We know that building a global portal is only the first part of the solution. Especially now, it must automatically manage regulations and intricacies based on employees’ locations. Thanks to our international position and local teams with knowledge of HR regulations we do not only build such global solutions but also provide localized services in Poland, Bulgaria, the Czech Republic and Slovakia.

Iwona Kubisiak, SAP Business Director, NATEK, specializes in SAP consulting and managed services projects. She is responsible for building solutions for clients and managing the organization of sales and deliveries.

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TECH

GOOD OUTLOOK THE FUTURE OF POLISH EV REMAINS OPTIMISTIC

T

he speed of development of the Polish e-mobility market seems to have found another confirmation, as the key components of the funding for the EV charging infrastructure support program launched on January 7 have already been consumed.

The program entitled “Support for EV charging infrastructure and hydrogen refueling infrastructure” was launched by the Polish National Environment Protection and Water Management Fund (NFOŚiGW) to drive the development of public charging infrastructure. The dedicated funding amounts to PLN 800 million. It was split into four tiers:

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• Private EV chargers below 22kW — PLN 70 million • Public EV charging points between 50-150kW — PLN 315 million • Public EV charging points above 150kW — PLN 315 million • Hydrogen refueling stations — PLN 100 million The requests filed for installations above 150kW depleted to allocated funds by January 21, in two weeks since the program was launched. This quick reaction of the market seems to prove that the e-mobility industry waited for this program and received it

well, which means it was prepared with full awareness of the market expectations. Presently, EV drivers only have 50 stations with more than 150kW power at their disposal in Poland. This combined with the extensive formal obstacles for rapid development (like grid connection times and technical approval are at least 18 months) and a still-low number of EVs makes the demand for charging infrastructure low, and hence, investment is still below the profitability which would attract new operators and investors.

The reasons make programs such as the new NFOŚiGW subsidy essential to drive the market further.

THIS PAGE SHUTTERSTOCK, OPPOSITE PAGE PRESS MATERIAL

BY ALEKSANDER RAJCH

E-MOBILITY

During the last three months in Poland, 280 public charging stations were installed in Poland, which is three times as much as during the same period on the verge of 2020 and 2021. Many charging point operators (CPOs) also undertook activities aimed at increasing the power of existing charging stations and adding charging points in already existing locations. This bodes well and seems to be perfectly timed with the subsidy program described above. At the end of January 2022, there were a total of 1,992 public charging stations in Poland (3,893 points). Just in the first month of this year, 109 new stations were added. Overall, 11% of the existing charging infrastructure is installed as part of the TEN-T network.

Much still has to be done in light of the still low EV car park in Poland.

The data shows optimistic trends as there were three times more EV registrations in Poland in January 2022, year-to-year. Data shows that there were 39,328 passenger EVs and 1,738 utility vehicles. This means an 88% rise and a 145% rise for the two segments respectively against the same time last year. Poland also continues to lead in terms of e-bus fleets within the European Union with 655 units. It must be stressed, however, that apart from passenger vehicles, delivery vehicles and buses, the road transport sector will soon also have to address the issue of heavy-duty vehicles (HDVs). Last year in Poland, there were over 30,000 registrations of vehicles above 16 tonnes, with only four being electric. This is an issue of vehicles but also an important topic regarding high-power charging infrastructure at more than 500kW. Moreover, charging hubs will have to be developed in cooperation between logistic operators, public administration and market stakeholders in order to ascertain that this zero-emission heave transport network works efficiently.

So once again, there are still challenges ahead for the Polish EV sec-

POLISH E-CAR RUBBER TO HIT THE ROAD SOON? ElectroMobility is gaining momentum in its preparation of the Izera — the first Polish EV for the mass market. Recently, the company presented its main objective in the lower house (Sejm) of the Polish parliament, showcasing the designs for the plant which is planned to be developed in Jaworzno.

The company is still in the process of selecting partners and suppliers for the platform and powertrain technology. Despite some skeptical voices, ElectroMobility secured its first phase of financing from its shareholders and is planning to secure the next steps as well, once the technology suppliers are confirmed. It is still unknown which battery supplier will be selected for the vehicle. Market experts point out that the Polish brand intends to offer vehicles in popular segments, which must stand out in terms of quality, accessories and above all a rational and attractive price. The competition in these areas is already very intense and it will be incomparably larger in 2023 and later years.

EV models have been introduced by practically all significant automotive producers that boast a superior technological base and brand recognition amongst potential consumers. Selling the vehicle is not the end, however, post-sales servicing and repairs are also an important element of the value chain, which is also an unknown in regard to Izera’s plans.

Hence, the project is ambitious but may prove to be successful if and when external factors are favorable and the business strategy presented thus far is implemented in full.

tor, but the situation is much alike in the entire CEE region. As the work on the Fit for 55 legislation package passes into the European Parliament and the local administrations, such as the Polish NFOŚiGW, appear to understand the needs of the market, numbers related to the development of e-mobility may rise much quicker in the coming months. PSPA predictions show 43,000 public charging stations and nearly 300,000 passengers and delivery EVs by 2025, so the outlook is good, though burdened by the workload ahead.

The Polish Alternative Fuels Association (PSPA) states that it is the largest, fully representative industry organization, which promotes zero- and low-emission technologies in transport in Poland. Aleksander Rajch is the director for external relations and board member at PSPA.

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To ban, or not to ban SHOULD AI-CONTROLLED WEAPONS BE BANNED OR DO THEY PROVIDE SMALLER COUNTRIES THE CHANCE TO DEFEND THEMSELVES?

BY JACEK KRAWCZAK

R

ussian aggression against Ukraine which began on February 24 makes the question of how Poland should get prepared for a potential conflict more and more important. The significance of new weapons like unmanned aircraft or cybersecurity attacks is already evident in this war. The sheer number of troops does not guarantee a quick victory. The armored conflicts of the future will be even more different from the wars fought between armies

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of hundreds of thousands of soldiers in the 19th or 20th century. Most likely they will be fought not by numerous but highly skilled professionals supported by cutting-edge technology, most likely including autonomous, AI-controlled weapons.

Many people argue that, for ethical reasons and because of the danger of uncontrolled proliferation, autonomous lethal weapons should be fully banned, similar to chemical or biological weapons. In fact, the topic of banning lethal autonomous weapon systems (AWS) has been coming back many times during the last decade. The recent talks at the United Nations to regulate AI-controlled weapons failed again, as some of the countries leading in the military development, including the United States and Russia, were against such regulations.

Back in 2013, activists and NGOs from many countries launched the “Campaign to Stop Killer Robots.”

The initiative was supported by 3,000 robotics and AI experts who issued an open letter calling for a complete ban of offensive AWS operating without

human control.

Such autonomous weapons already exist, for example, Israeli Harpy or Turkish Kargu drones. They can be launched to fly over a particular area, search for a target and destroy it when found. Unlike nuclear weapons, AIcontrolled weapons are very cheap and easy to construct. In the future, the miniaturized, fly-size drones equipped with face recognition systems may become cheap and practically unstoppable assassins.

But there are also benefits of AI-controlled weapons. The supporters of AI weapon systems argue that their use will reduce the number of casualties, first soldiers, but also civilians. AI systems do not have the mental or physiological limitations that humans have, they are not subject to stress and emotions such as fear or hysteria leading to irrational behavior. The rape of women by soldiers that occurred throughout the history of wars will be a thing of the past.

Autonomous weapons have also clear technical advantages. Currently, constructed airplanes have numer-

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TECH

OPINION

ous limitations, which are imposed only to protect the human body. A human can bear only certain accelerations and overloads related to them. After eliminating human pilots, these constraints would not be needed anymore.

The plane would be able to withstand greater overloads, which would allow increasing its maneuverability. And of course, the pilot's life wouldn’t be risked.

For many smaller nations, using AIcontrolled weapons may be a way to reduce the military supremacy of their more powerful hostile neighbors. In Poland, AWS, although not widely present in a political debate, are still a subject of discussions conducted by geopolitical thinktanks.

Regardless of ethical issues, the leaders in AI — China and the US — are determined to keep developing military applications of AI systems.

While the arms race of the 20th century was dominated by the development of weapons of increasing power, now the arms race is shifting towards AI-controlled weapons in all areas of the potential battlefield, including outer space and cyberspace.

Although it may be extremely difficult to regulate AI-controlled weapons, it is still worth trying. The armed conflicts of the future will look completely different than today. They may be more deadly than nowadays or just the opposite, depending on how the autonomous weapons will be handled.

Welcome to the (meta)club!

HOW DID THE FANCY BEARS METAVERSE BUILD THE NFT COMMUNITY?

Jacek Krawczak is a senior data scientist at Atos R&D Poland and an AI senior expert at Atos Global Expert Community. Founded in 1997, Atos is a French multinational IT service and consulting company.

S

ale of 2,000 NFT tokens in eight minutes. Revenues of PLN 19 million in 11 days. An impressive list of influencers. Interest from the world's media. Special events and offers for members of the Fancy Bears Metaverse… The project of the Polish Fanadise platform is gaining more and more popularity and does not seem to slow down.

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OPINION

TECH

THE NFT INDUSTRY IS CONQUERING THE WORLD AND ENTERING POLAND WITH MOMENTUM project decisions within a decentralized autonomous organization (DAO).

Each Fancy Bear avatar is also a character in the metaverse — a "parallel world" that uses virtual reality. This is where NFT holders will be able to meet and perform various activities.

Fanadise sold a total of 7,888 bears for the equivalent of approx. PLN 19 million. The last 2,000 tokens were sold out in eight minutes. In mid-January, the agency presented graphics representing Fancy Bears on OpenSea.io — the most popular NFT trading platform.

WORLD MEDIA SPOTLIGHTS THE POLISH AGENCY

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“The Fancy Bears Metaverse project was created in a relatively short time, but this is not our first contact with the NFT. The technology has been on the wave of great popularity for a year, but it originated over four years ago. From the very beginning, we have closely watched the entire market, learning how it works. We were careful with the first steps, but now we are sure. This is a major technological breakthrough and it is worth being part of it,” says Jakub Chmielniak, one of the creators of fanadise.com.

WHAT IS THIS ALL ABOUT?

The Fancy Bears Metaverse is a collection of 8,888 tokens in the NFT form, each of which is represented by an avatar with the image of a bear.

Owning a token means belonging to an exclusive club where members participate in special events and can make

CURRENT SITUATION AND PLANS FOR THE FUTURE

The NFT phenomenon interested many people: not only those with a strong focus on the world of new technology but also those who did not have much in common with this industry.

Krzysztof Gonciarz, Magda Gessler, Joanna Jędrzejczyk and Malik Montana, among others, own Fancy Bears tokens. Floyd Mayweather, the legendary American boxer, is also an owner of the bear.

SHUTTERSTOCK

The NFT industry is conquering the world and entering Poland with momentum. In 2021, the global market value exceeded $40 billion with over 280,000 people making at least one purchase or sale of a token. The Polish platform Fanadise is gaining great popularity in Europe. It became famous thanks to the token with a 3D scan of the body of the famous singer Doda and the emission of NFT representing the virtual love of influencer Marti Renti.

In November 2021, the company decided to start a new project — this time on a much larger scale. December was full of fine-tuning the details of the Fancy Bears Metaverse, creating a website, social media and completing a collection of 8,888 unique bears. Just before the end of last year, Fanadise threw a presale for members of NFT's partner communities.

The agency's activities were noticed by the international media. Fanadise's projects have been covered by such websites as New York Post, Mail Online, Die Zeit and The South African. Information about the Fancy Bears Metaverse and token pre-sale appeared on Instagram @nft. The account has over 1.6 million followers and brings together people interested in the NFT industry. Fancy Bears Metaverse currently reaches over 100,000 users on Discord, 39,000 on Twitter and 22,500 on Instagram.

FOLD

Hello!

It’s 007.

IS YOUR CELLPHONE A SPY?

BY SERGIUSZ PROKURAT

I

n early 2022, Citizen Lab, an interdisciplinary laboratory based at the University of Toronto, Canada, informed about a number of people under surveillance in Poland. The list of politicians, journalists, officials and judges who handed their phones over to the lab for investigation is growing longer, as it was established, surveil-

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lance had been featured with the use of state-of-the-art methods. One of the tools allowing such methods is Pegasus, which virtually cannot be protected against. It enables taking complete control of the phone — not only eavesdropping on calls or monitoring text messages but also downloading the entire content of the phone, breaking into all information stored on the phone and also getting ongoing access to the camera or loudspeaker.

IS POLAND AN ORWELLIAN STATE?

In George Orwell’s “Nineteen EightyFour,” we read about the phenomenon of thoughtcrime — a crime taking place in a fictional state that comes from newspeak and is the result of combining the words “thought” and

“crime.” In practice, it means acting against the line propagated by the Party and Big Brother. Thoughtcrime is detected by the Thought Police, which acts as a secret service. A person declared a thought criminal by the Thought Police is evaporated, i.e. all their data is erased from the books and all traces are erased. Orwell owes his own adjective to this book alone and his idea that wellbeing is crushed by the restrictive and untruthful government. At the time when “Nineteen Eighty-Four” was published, hardly anyone thought about the possibility of oppressive power having the technical means to spy on citizens. Today, the state has such means. It is true that it is not extremely oppressive. But it cannot be precluded that it will turn into an oppressive state.

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TECH

F E AT U R E

There exists a tacit social consent that allows the authorities to keep an eye on everyone. In Orwell’s vision, the society is divided into the socially unconscious Proles, interested only in satisfying their basic needs — they do not need to be watched over, unlike extraordinary citizens who can potentially organize the Proles into a significant force. Hence, for many people, surveillance is not a big problem.

We don’t even experience it every day.

Nevertheless, we are aware that it is happening — on the internet, through cameras on the streets or through social media.

NO BIG DEAL

Surveillance is taboo in today’s world.

Nobody wants to talk about it and it causes conflicting emotions. After NSA whistleblower Edward Snowden leaked unfavorable reports on spy actions of the US administration in 2013, comments were very varied, including that Snowden’s actions had devastated the authority of Western democracies and their citizens’ trust in the authorities. The illegality of the government’s actions was not paid attention to very much. After all, every country uses various methods to obtain valuable information. Perhaps, the trick is that we should be aware that we are “under control.” Surveillance is always justified by the need for prevention and detection of terrorism, arms and drug trafficking, corruption and tax evasion.

Nevertheless, the scope of scrutiny should be limited. If someone is convinced that the state’s intervention in terms of surveillance of criminal offenders is indispensable, how to draw boundaries for surveillance used in a political game? In light of the present knowledge, Pegasus could have been used in Poland to test the opposition’s ideas and use them in pre-emptive actions. Moreover, it allows more control over judges, officials and others, and they can be more easily intimidated or discredited.

IN POLAND, IT IS NOT ALLOWED TO KEEP PEOPLE UNDER SURVEILLANCE OR USE SYSTEMS SUCH AS PEGASUS, BUT IF SOMETHING IS FOUND, IT MIGHT BE USED IN COURT CASES IS IT LEGAL?

Prof Marcin Wiącek, Poland’s human rights commissioner, says: “The Polish law does not allow the court to consent to surveillance using this type of device.” Generally, customary methods of legal operational control that must be approved by the court may last up to a year. On the other hand, without the consent (and thus without a trace), the services can eavesdrop for up to five days — and if they do not obtain the consent of the court — the materials must be destroyed. Unfortunately, the so-called consumption of the fruit of the poisonous tree doctrine, introduced to Polish law in 2017, allows the use of illegally obtained evidence. It is no coincidence that in the same year, the Central Anticorruption Bureau (CBA) purchased the Pegasus system and the Polish services gained the possibility of uncontrolled surveillance of smartphones and tablets, bypassing the courts.

To sum up, in Poland it is not allowed to keep people under surveillance or use systems such as Pegasus, but if something is found, it might be used in court cases. Law formulated this way is a great stimulus for secret services, but also a threat to privacy. Once an exception is made in the case of an important president, judge, prosecutor or businessman, it may happen to anyone anytime. The question is, will it have a deteriorating effect on democracy and freedom in Poland? From the citizens’ point of view, it does not

look good. Knowledge of the purchase of surveillance equipment is a secret.

The right to keep people under surveillance is a secret. Whether this right is exercised by services in relation to any entity is also a secret — not only we cannot find out whether we are being eavesdropped on, but also we can’t find out whether we have ever been eavesdropped on. Is it time to check our phones ourselves?

ANTI-PEGASUS SOFTWARE AVAILABLE

Amnesty International Security Lab has developed a special Pegasus trace surveillance software called MVT, and — in cooperation with Citizen Lab — has initiated an investigation on the scale of its use. MVT is available for free: every user of iOS (Apple) and Android smartphones is able to detect whether they were a potential target of an attack.

What does this mean for business? If software like Pegasus is ever resold in the open market, it will virtually be impossible to track who ultimately bought the tools and for what purpose/s. One of the reasons the NSO Group’s Pegasus is so well-recognized is that it is the only software capable of performing certain operations. In other words, it plays in its own league against its competitors. Citizen Lab analysts indicate that companies are not the main target of Pegasus and similar tools, and the vast majority of confirmed or suspected infections do not concern corporate espionage, also due to restrictions on sales to the private sector. Beyond that, corporations are good at implementing security measures, phishing protections, wherever possible.

In 2022, the presidium of the European parliament decided to appoint a cross-party investigative committee dealing with the use of the Pegasus surveillance system. Meanwhile, Polish politicians have claimed that if someone has nothing to hide, there is nothing to be afraid of. Is there anything more to be expected?

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MARKETING INSIGHTS

Valkea’s Strategic Consultant Jerry Kamecki describes three cases where the agency helped companies pivot in their communication strategy to drive revenue.

Building a content platform, working with influencers, and leveraging eco-education helped clients stay relevant in extremely competitive retail sectors.

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For anyone wanting to keep up with the latest beauty trends and products, Valkea created the Douglas x You e-magazine to guarantee the brand remains top-of-mind among its target group. The new platform delivers beauty and make-up inspirations, expert advice, premieres and reviews. To go beyond standard influencer activities, we invited beauty and make-up artists as well as skin-care experts to create engaging content for the platform, while promoting their favorite products. Our campaign across all social media builds an engaged audience by delivering educational content to expertly move them down the marketing funnel.

Check out the results at https://douglasyou.pl/

Jerzy Kamecki New Business Director at Valkea Media – a marketing agency in Warsaw If your brand could use a fresh perspective, get in touch with us: jkamecki@valkea.com, tel. 502 290 260

IMAGES COURTESY OF VALKEA MEDIA

CREATIVE COMMUNICATION HELPS GROW REVENUE

Douglas delivers inspiration not advertising

Community-building with an environmental angle Known as the Venice of Poland, Wrocław is extraordinary for its many, often undiscovered, faces. Our Wrocław Goes Green helped city residents look anew at our client, the Galeria Dominikańska mall, and their hometown - from an urban-ecological perspective. Our exceptional visual theme interprets the city’s leading eco-attractions as part of a limited magnet and poster collection available at the mall. We also designed a series of free walking tours and a special map to help people experience the town’s greatest eco-gems - and see how easy it is to change habits and start living in harmony with nature. Educational aspects of the "Wrocław Green Again" campaign included inspiring ideas for the reuse of recyclable materials.

At the mall, we arranged a unique garden with flower installations made with the use of unexpected recycled objects. We also set up colorful recycled bicycles with flowers in the city space to promote an environmental approach – and our action.

Ecco’s brand rejuvenation through influencers “Give a girl the right shoes and she can conquer the world,” said Marilyn Monroe. And we couldn’t agree more. Our "Moves Like You" campaign for ECCO footwear featured wellknown influencer and fashion blogger Jestem Kasia along with many other movers and shakers. We selected influencers conquering the world and shared their stories online, nearly 30 television channels, 40 in-store locations and OOH media in Poland. The campaign helped to associate the classic brand with a fresh face and younger demographic.

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EVENTS

The WBJ relives or looks forward to the most important events from the world of business and economy

LEWIATAN CONFEDERATION’S PRACA 4.0: A RECORD-BREAKING EDITION The Praca 4.0 conference was in many ways a record-breaking edition. The event held by the Lewiatan Confederation was attended by over 800 people. The Warsaw Business Journal was the media patron of the conference organized at the end of January.

This year, the organizers broke the event down into two parts — an on-site conference at the Novotel hotel in Warsaw and a four-day online workshop. Its slogan was “New normality in a new reality.”

The first day of Praca 4.0 witnessed the speakers and a fairly large (as for Covid-triggered conditions) audience discussing labor law, how to attract talents to companies, as well as about

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modern technologies that are used to recruit employees. The discussions were attended by, among others, Barbara Socha, deputy family and social policy minister, Katarzyna ŁażewskaHrycko, head of the state labor inspection, Henryka Bochniarz, chairwoman of the main council of the Lewiatan Confederation and Robert Zapotoczny, head of the PFR Portal PPK. The participants paid a large amount of attention to the discussion on the role of leaders in the era of a rapidly changing labor market.

Jacek Kowalski, board member for Human Capital at Orange Polska, was one of many who spoke on this matter. “Leadership is a damn hard job …

Primarily, a leader must know how to lead people

so that the majority of them follow the leader, and not necessarily that everyone is super happy in the situation.” Jolanta Musielak, board member for HR at Volkswagen Polska Poznań, said: “A leader is, first and foremost, someone authentic.

Someone the team simply trusts.”

In the following days, the participants of the online workshops could listen to the opinions of experts on, for instance, employing foreigners or creating valuable benefits for employees. There were also topics related to mobbing, personal data protection and remote work during the pandemic.

The next edition of Praca 4.0 is in a year.

Elektrownia Powiśle.

LAST WORD

cause of death was not identified in a statement released by the hospital. Shortly after her death, a statement by her family accusing the hospital of neglect was published on Facebook, alongside a distressing video of Agnieszka’s last days.

Her death follows that of a 30-year-old woman known only as Izabela — yet another alleged victim of Poland’s seemingly internecine abortion legislation — who died in September after her waters broke in the 22nd week of her pregnancy. Her family states that she was denied medical intervention as the hospital quoted Poland’s abortion laws and refused to conduct an abortion or C-section.

“Medical malpractice” led to Izabela’s death, claimed an investigation. The hospital was subsequently fined. If only investigations and fines could bring the dead back to life.

At least 34,000 women in Poland are known to have sought abortions illegally or abroad since the country introduced a near-total ban on terminations on January 27 last year. On October 22, 2020, Poland’s Constitutional Tribunal, consisting mainly of judges appointed by the governing party Law and Justice (PiS), declared the law authorizing abortions for malformed fetuses to be unconTHAT SOUND YOU CAN HEAR is the combined stitutional, effectively banning most of the small number clomp of hundreds of booted feet in the center of Warof official abortions carried out in the country. saw. Thousands across Poland are braving the January According to Abortion Without Borders (AWB) — cold to protest the death of someone identified only as an organization that helps women access safe abortion Agnieszka T. services — more than 1,000 Polish women have sought I don’t know her. I only read about her in the press. I’ve second-trimester abortions in foreign clinics since the never met her. And I won’t. But I surely know that Agcountry passed the draconian new laws. AWB said its nieszka wasn’t born to die at 37 leaving her three children figures are likely to just be a snapshot of the true number behind. But destiny intervened. of Polish women seeking illegal or foreign abortions in the While you and I were preparing for the end-of-year past year. festivities and looking eagerly toward 2022, Agnieszka was Meanwhile, Polish gynecology experts have said that first admitted to the hospital with abdominal pain on De- Agnieszka’s pregnancy could not have been terminated cember 21. When she arrived, she was in the first trimester sooner and that the doctors’ decisions were right adding of a twin pregnancy and in “good physical and mental that Poland’s near-ban on abortion has had a very stressful shape,” and then her condition went downhill, according effect on women. to her family. Two days later, one of the twins died and, To my mind, the decision to birth or abort a malformed Agnieszka’s family says, the doctors refused to remove it, fetus rests entirely with the mother. It’s a personal choice citing Poland’s current abortion laws. They waited several no one should have the right to violate. Neither the days until the second fetus also died. A further two days unborn’s father nor the expectant mother’s family and defipassed before the pregnancy was terminated on Decemnitely not lawmakers or religious leaders. ber 31, according to the family.

And although we’re yet to ascertain the cause of AgAfter the termination, Agnieszka’s health continued nieszka’s death, the fact remains that when she died, she to deteriorate further and before the end of January, she wasn’t just another patient, another woman, another statisbreathed her last sparking mass demonstrations across tic or another alleged victim of the system. When she died, Poland. Her family suspects that she died of sepsis but the died the mother of the three children she left behind - SD

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SHUTTERSTOCK

Left behind