WBJ #23 2012

Sociologist Janusz Czapiƒski discusses the effect Euro 2012 is having on the Polish psyche

discusses his new party and his rivalry with Jaros∏aw Kaczyƒski

8-9

WWW.WBJ.PL

8-9

Interview: Zbigniew Ziobro

VOLUME 18, NUMBER 23 • JUNE 11-17, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

COURTESY OF PORT PRASKI

REAL ESTATE

Since 1994 . Poland’s only business weekly in English

Game on Euro 2012 has kicked off, with Poles and Poland basking in the glow of the international spotlight

• Class-B offices • Galeria Bursztynowa • Polnord in Port Praski

2, 3, 11

SHUTTERSTOCK

Outsourcing matures

Poland’s outsourcing market continues to attract investment 6

In this issue

EAST NEWS

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . .10-11 In Depth . . . . . . . . . . . . . . . . . .12-13 Society in Focus . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Marketing miracle?

Building collapse

How the Catholic church is using modern techniques to sell itself

The builder of three of Poland’s Euro 2012 stadiums declares bankruptcy 12-13

5

NEWS

www.wbj.pl

is the share of the Polish population living below the “absolute poverty” line, according to Poland’s Central Statistical Office.

z∏.3.14 billion is how much the Treasury has earned so far this year from privatizations.

12% is the proportion of Poles who think that adopting the euro would be beneficial for Poland, according to a recent survey.

was the number of passengers who flew from Warsaw’s Chopin Airport in May 2012.

Quote of the Week

“It’s better to have bunga bunga than to abuse alcohol.”

Polish soccer team coach Franciszek Smuda as quoted by Polish daily Dziennik Gazeta Prawna. “Alcohol just blows my fuse,” he added. Coach Smuda has applied a strict alcohol ban on his team and was implying here that it is better for his players to spend time with women than to drink.

Figures in focus Earnings report Average gross annual earnings (in €) of full-time private-sector employees, 2010, selected EU27 countries 60,000 50,000 **Highest in EU27 *Lowest in EU27

40,000 30,000 20,000 10,000

ria * lga Bu

Lat via

nd Po la

ia vak Slo

Por tug a

l

0 Ita ly

David Ingham

981,000

UK

to Gdynia” unveiled by locals who seemed delighted to have the Irish squad in town.

The players themselves seemed equally pleased with the reception, with Ireland’s coach, 73-year-old Italian Giovanni Trapattoni saying at the time, “These scenes today are so very special. I thank everyone for the welcome we received today.”

The England squad was equally enthusiastic about the support in Kraków when they arrived last week, with thousands of fans waiting at the city’s airport and outside their city-center hotel to greet Manchester United’s Wayne Rooney and his teammates.

Arsenal and England winger Alex Oxlade-Chamberlain tweeted of the experience “Just got to the hotel, crazy reception when we arrived!”

If Poland can maintain this feel-good factor over the coming weeks, then the long-term implications for the country and its people can only be positive.

an y

Portugal, Denmark and England, all of whom have three group games in Ukraine, it highlights the fact that they felt Poland was better suited to their needs.

Likewise, many tickets for games in Ukraine went unsold and were sent back by soccer associations, whose fans had been deterred by high travel costs and fears for their safety should they travel to Poland’s eastern neighbor.

Despite the negative press that has accompanied Poland in recent weeks, particularly in the UK, where the BBC’s Panorama documentary sought to highlight the racism which exists within Poland’s soccer leagues, the welcome foreign players and their coaching staff have received so far seems to have already had the desired effect.

In Gdynia some 13,000 people, the majority of them Poles, turned up to watch the Republic of Ireland squad in their first public training session last week, with a huge Irish flag declaring “Welcome

**

With Euro 2012 now well underway the waiting is over for Poland and Ukraine, and the chance to deliver a successful tournament is now upon both nations. The longterm aim of securing the right to co-host the event was to improve infrastructure, particular in terms of road and rail transport, as well as to alter negative impressions about the country and its people.

From the outset it seems that among both fans and the teams themselves, Poland is already the favored destination. Of the 14 foreign teams competing at Euro 2012 (excluding Poland and Ukraine) 12 of their soccer associations have chosen Poland as their base country for the tournament, with only France and Sweden choosing to stay in Ukraine.

This was understandable for Poland and the seven other teams from Group A and Group C, who will play their games in Gdaƒsk, Poznaƒ, Warsaw and Wroc∏aw. But for Germany, the Netherlands,

Source: Eurostat

On WBJ.pl Strolling Ujazdów Overshadowed by Park ¸azienkowski, it is a forgotten gem in the center of town. The district is filled with secret surprises and hidden glories. WBJ’s sister publication Warsaw Insider takes you on a stroll around Ujazdów.

Poles change opinion on Kaczyƒski Polish opinion of the country’s late President Lech Kaczyƒski has changed since he died in the 2010 Smolensk tragedy. According to a recent survey by TNS for Polish daily Dziennik Gazeta Prawna, 57% of those surveyed feel Mr Kaczyƒski was a good president, while 77% believe he was a good Pole. This a major shift, as polls prior to his death showed only around 25% of Poles approved of his role as the country’s president. ●

6.7%

Ge rm

The Monetary Policy Council decided not to change Poland’s interest rates last week, with the headline rate remaining at 4.75%. The Council’s decision was in line with analysts’ expectations.

Only one out of 23 analysts surveyed earlier by Rzeczpospolita had said that interest rates would be increased again.

“GDP data have confirmed a gradual slowdown in economic growth. In 2012 Q1, stable consumption growth was accompanied by slower – as compared to the previous quarter – investment growth,” the Council wrote.

Euro 2012 – changing perceptions

ark

RPP leaves interest rates unchanged

Numbers in the News

nm

Debbie Schlussel, a well-known US journalist, has had her Facebook profile overrun with comments from Poles, who have taken issue at a recent article she wrote which alleged Polish complicity in the Holocaust. In the article, Ms Schlussel called the outrage surrounding US President Barack Obama’s use of the phrase “Polish death camps” ignorant, claiming that “Poles murdered millions of Jews and maintained several death camps.”

“This wasn’t just the Nazis. It was tens of thousands of eager Poles and more. Obama made no gaffe here,” Ms Schlussel wrote on her blog.

IN THE SPOTLIGHT

De

Schlussel’s comments anger Poles

JUNE 11-17, 2012

AFP/EAST NEWS

2

Company index Acron ....................................................................................5 Allegro ..................................................................................5 Azoty Tarnów ........................................................................5 Jato Dynamics ......................................................................7 LOT ........................................................................................5 Microsoft..............................................................................23 Naspers ................................................................................5

DATELINE

OLT Express ..........................................................................5

June 11

GEWINN

Event:

Web:

The GEWINN Real Estate Conference is a platform for commercial real estate and investments in Central, Eastern and Southeastern Europe – including Russia, CIS and Turkey.

Vienna gewinn.com

12

KRAKÓW. OFFICES. INVESTMENTS.

Event:

This business breakfast is co-organised by Jones Lang LaSalle and the British Polish Chamber of Commerce. There will be a presentation called “Offices 2020” and a panel discussion with representatives of develop-

Location:

Nintendo ..............................................................................23 Onet ......................................................................................5

Web:

ers, bankers and occupiers from the Kraków marketplace.

Rubinstein Hotel, Kraków bpcc.org.pl

20

POLAND-US BUSINESS SUMMIT

Event:

This event will look at the business opportunities for Polish-American Economic Cooperation in 2012 and beyond. Special guest speakers include Deputy Prime Minister and Minister of Economy of Poland Waldemar Pawlak and US Secretary of Commerce John Bryson.

Copernicus Science Center, Warsaw summit2012.pl

Location:

Location: Web:

PBG........................................................................................5 Peter Nielsen & Partners ......................................................6 PGE ......................................................................................12 PKN Orlen ..........................................................................14 Polsat ..................................................................................13 Ringier Axel Springer ..........................................................5 Sony ....................................................................................23 Tamka 43 ............................................................................22 TVN ..................................................................................5, 13 TVP ......................................................................................13 Warsaw Stock Exchange ......................................................5 X-Trade Brokers..................................................................20

NEWS

JUNE 11-17, 2012

www.wbj.pl

3

Soccer

Euro 2012 kicks off played a more modern piece of music which he had composed with the Hungarian pianist.

The Polish and Greek national anthems were then sung by 75 singers from the University of Warsaw Choir, conducted by Irina Bogdanovich.

A million fans are expected to visit Poland during the tournament as well as over 3,000 journalists, while each match will be watched by an estimated 150 million fans worldwide.

half a goal from Greek striker Dimitris Salpingidis made the full-time score 1-1.

Prior to kick off, the opening ceremony consisted of a 12-minute spectacle directed

by Marco Balich who produced the opening and closing ceremonies of the 2006 Turin Winter Olympics. Hungarian pianist Adam Gyorgy performed Chopin’s Etude in A minor, Op. 25, No.11.

He was accompanied by Italian DJ Karmatronic who

EAST NEWS

Golden goose

Robert Lewandowski opened the scoring for Poland

The European soccer championship is a guaranteed moneymaker. It will generate an estimated $1.6 billion in advertising revenue. Each match in the tournament will generate an average of $51.6 million.

In comparison, FIFA made an average of $56.7 million for every match in the South Africa 2010 World Cup. Poland also stands to benefit financially. Financial website Money.pl, using data supplied by the tournament’s organizing committee in Poland, estimated that visitors to Poland would spend around z∏.800 million while in the country.

Fifty-three TV stations all over Europe and in 32 countries on different continents around the world will transmit the tournament live.

Remi Adekoya

EAST NEWS

Some 58,000 fans witnessed the opening ceremony of Euro 2012 at the newly-built National Stadium in Warsaw last Friday, before watching the first match of the tournament between Poland and Greece.

From midday onwards the city center was thronged with Polish fans celebrating the fact that such an important event was taking place in their home country.

To the delight of Poles, in the first half their team played to their full potential, and urged on by a passionate home crowd they managed to go in at the break 1-0 up courtesy of a goal from Robert Lewandowski.

However, in the second

Fans went wild in Warsaw

EAST NEWS

The world’s thirdlargest sporting event was launched in Warsaw amidst much excitement

Polish and Greek fans

Euro 2012

Opening ceremony aims to ‘touch hearts’ Natalia Kopytnik: The opening ceremony of the European championships is usually much shorter than the ceremonies for the Olympics or the World Cup. Did the time frame influence preparations for the opening ceremony in Warsaw?

Were any special considerations taken into account due to the fact that this event revolves strictly around soccer?

Marco Balich: Even though an Olympic ceremony may last for hours compared to the 12minute show of Euro 2012, together with the Filmmaster Events team, our expertise and effort was focused on making this event memorable and unique, celebrating the national soccer teams in Poland and Ukraine and conveying UEFA’s values of unity, rivalry and passion. We want

to touch the hearts of the Polish people and of all the people who will have the chance to follow the event.

This is the first time an event of this scale has been held in this part of Europe. What role did location play in the planning process?

The National Stadium in Warsaw is one of the most beautiful stadiums in the world. I think that there was no better place to prepare such an opening for an event of this scale for the first time in Eastern Europe. I am sure that this wonderful stadium will contribute to convey the magical atmosphere and the emotions created by the opening show. I have never worked in Poland before and I feel very excited to work at the National Stadium in Warsaw.

Adam Gyorgy played a Chopin etude during the opening ceremony. Music such as this is typically not associated with soccer. What was the reasoning behind featuring classical music in the opening ceremony?

Music, and especially Adam Gyorgy’s performance, aims to touch people’s hearts. He brought the pure classical tradition of Chopin into a sporting environment. Our desire was to make people feel as excited as we felt to prepare the show.

Some in the Polish press questioned the fact that Mr Gyorgy, a native Hungarian, was chosen to perform the Chopin piece. Given the adulation Poles have for Chopin, some believe that a Polish pianist should have been chosen instead. Why did you choose Mr Gyorgy in particular?

Mr Gyorgy recently celebrated

his 30th birthday with a soldout concert at New York City’s Carnegie Hall. His music is appreciated all over the world.

Why not choose him for the opening ceremony?

The opening ceremony has set the tone for this historic three-week-long tournament.

Naturally, such an event evokes strong feelings of competitiveness among fans and players. How did you try to reconcile this sense of rivalry and passion with the idea of unity in the opening ceremony?

I think that [this tournament] is a great occasion for Poland.

Together with the Filmmaster Events team we thought of a ceremony that was able to pay tribute to every national soccer team playing in Poland and Ukraine. I am sure that no old rivalries will affect the event.

We consider sport as a value able to unify all countries of Europe. ●

COURTESY OF MARCO BALICH

Marco Balich, the creative director of the Euro 2012 opening ceremony, spoke with WBJ about reconciling rivalry and unity, the use of Chopin, and how location influenced the celebrations

Marco Balich said the National Stadium is one of the world’s most beautiful

4

NEWS

www.wbj.pl

Illegal drugs

Poland close to European Space Agency membership

Forty detained in drug bust outside Warsaw A total of 40 people were detained by police last week as the Central Bureau of Investigation raided an amphetamine factory located 40 kilometers outside of Warsaw, as well as several other locations.

The factory had reportedly been operating for over a year, producing amphetamines likely

destined for the Polish market.

The Central Bureau of Investigation has linked the factory to an organized crime group based in the Wola district and as the search widens more detentions are expected.

If convicted the detained individuals could face up to 12 years in jail.

The police search revealed large quantities of chemicals, amphetamines and

cocaine, a number of fraudulent documents, dismantled cars, weapons and piles of dollars and euros.

Investigations into the drug trade have been accelerated by the Central Bureau of Investigation since September 2011, with those who transport intermediary supplies for the production of drugs being under particularly strong surveillance.

The Institute of Public Affairs reports that the Polish government has become more involved in monitoring the drug trade after personal possession of drugs was criminalized in 2000. They increased their efforts when an act was passed in 2005 on countering drug addiction.

WIKIMEDIA COMMONS

The police raided a large amphetamine factory last week

JUNE 11-17, 2012

ESA membership could be financially beneficial for Poland

SHUTTERSTOCK

Anthony Adams

The factory produced drugs likely destined for the Polish market

According to the Industrial Research Institute for Automation and Measurements (PIAP), formal discussions and technical consultations concerning Poland’s entry into the European Space Agency (ESA) have been concluded. Now all Poland needs is its government to approve the country’s entry into the agency, which is Europe’s equivalent of NASA. Membership of the ESA will mean more than just prestige, since inclusion could also

lead to financial benefits for Poland.

The country’s government will contribute over €500 million to the EU budget to finance the ESA by 2020, of which only 5 percent will be returned if membership is not obtained.

Polish space enthusiasts have been collecting signatures as part of a petition to encourage Prime Minister Donald Tusk to support entry into the ESA. “Only full membership of ESA will create hundreds of

new jobs in this sector for Polish engineers, scientists and entrepreneurs. Previous Polish governments often ignored the problem. You have an historic opportunity to introduce us to the technological ‘first division’ and closer integration with Europe, creating measurable economic benefits for our country,” an extract from the petition reads. If the measure is not approved this year, the next chance to submit an application will not occur until 2015.

Natalia Kopytnik

SUBSCRIBE FOR 1 YEAR AND SAVE UP TO 50% OFF THE COVER PRICE Choose one option by checking the box

❏ WBJ IS NOW AVAILABLE IN DIGITAL FORMAT. READ WBJ AS A PDF OR E-ZINE.

OPTION 1

WBJ Electronic

Wa Warsaw Business Journal PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week for 12 months. for Everywhere: zł.424

❏

OPTION 2

WBJ Print

ENQUIRIES AM I C HA LI K @ VA L K EA .C O M, O R C AL L + 4 8 ( 2 2 ) 6 78-9912

In Europe: €297

OPTION 3

Outside Europe: €374

WBJ Premium

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus WBJ PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week.

Also receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

In Poland: zł.691

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

In Poland: zł.550

❏

In Europe: €330

Outside Europe: €407

Please fax this form to: +48 22 639 85 69 or mail it to our office: Subscriptions Warsaw Business Journal Valkea Media S.A. ul. Elblàska 15/17, 01-747 Warsaw, Poland

CLIENT DETAILS

PAYMENT OPTIONS (please check one)

Name ......................................................................................................................

Company ......................................................................................................................

Address ......................................................................................................................

Postal code ......................................................................................................................

City ......................................................................................................................

Country ......................................................................................................................

Telephone/Fax ...................................................................................................................... e-mail ......................................................................................................................

NIP (Poland)/EU VAT number (EU countries) ......................................................................................................................

❏ Pre-payment by bank transfer upon receipt of a pro-forma invoice. The pro-forma invoice will be sent to you immediately upon receipt of your order.

Your subscription will start within one week of payment. ❏ Credit card: ❏ American Express

❏ Visa

❏ Mastercard

Cardholder name ......................................................................................................................

Number ......................................................................................................................

CVV2/CVC2/CID

Expiration date

....................................................... ............................................................

Signature ......................................................................................................................

BUSINESS

JUNE 11-17, 2012

www.wbj.pl

5

Construction market

Media

PBG files for bankruptcy

Ringier Axel Springer in z∏.956-million Onet takeover deal

Poland’s third-largest construction company has suffered financially as a result of its decision to invest in Euro 2012 infrastructure

COURTESY OF WIKIMEDIA COMMONS

Polish construction company PBG announced last week that it had filed for bankruptcy. PBG, which is Poland’s third-largest construction firm, has become deeply indebted as a result of costs related to Euro 2012 infrastructure projects.

The company, which helped build three out of four stadiums for Euro 2012, blames difficulties connected to infrastructure project contracts and intransigent banks for its funding problems. It now hopes to reach an agreement with creditors to cut its debt by up to 31 percent.

PBG’s unconsolidated debt is valued at z∏.1.5 billion, said chief financial officer Przemys∏aw Szkudlarczyk. The group’s debt at its 12 crediting banks is worth z∏.1.7 billion, according to Kinga BanaszakFilipiak, a spokesperson for PBG.

TVN has agreed to sell a 76 percent stake to the joint SwissGerman venture, in the second-largest media deal ever in the Polish market

PBG modernized the Municipal Stadium in Poznaƒ as part of a consortium Analysts have expressed worries that PBG’s announcement could negatively affect the construction sector as a whole.

“The future of companies from the industry depends to a large extent on whether the commissioning party, namely the GDDKiA and the public sector overall, will learn from this painful experience and change the criteria for organizing tenders and selecting ten-

der winners, and also for settlement of contracts to provide, for example, a contract revaluation option,” said Bart∏omiej Sosna, senior construction analyst at PMR Publications.

“Undoubtedly, construction firms were excessively optimistic in calculating the future costs of executing contracts and took on considerable risk, which is now bearing fruit in the form of the problems they face today with exe-

cuting road works contracts,” he added.

PBG had specialized in the oil and gas industry since its establishment in 1994 but its decision to venture outside of its core business in order to cash in on the Euro 2012 building boom has proved disastrous. The builder’s stock plummeted just minutes after the bankruptcy news was announced.

Anthony Adams

Airlines

Poland forced to seek new buyer for LOT Turkish Airlines has pulled out of takeover talks

LOT is facing strong competition in the airline market “I won’t deny that we were upset,” LOT chief executive Marcin Piróg, told Polish radio.

“I have already talked to our Turkish partners who explained that their main reason for halting the negotiations was that after speaking to our lawyers they understood that they would not have factual control over the company.”

For Poland’s Treasury, which owns a 68 percent stake

in loss-making LOT, the news of Turkish Airlines’ withdrawal has come as a blow. It will now have to find another suitor – probably from within the EU – fairly quickly if it wants to realize its plans of offloading its stake by the end of the year.

If it can’t find a strategic investor, the Polish state is also mooting the idea of floating LOT on the Warsaw Stock Exchange.

In 2011, the Polish carrier made a loss of z∏.145.5 million, compared to a z∏.163.1 million loss a year earlier. For full-year 2012, the company hopes to register a profit of around z∏.52.5 million. The airline is facing strong international competition from low-cost carriers such as Ryanair and, in its home market, from newcomer OLT Gareth Price Express.

Anthony Adams

State-owned firms

Pressure builds in Azoty takeover The State Treasury is reportedly looking for another bidder

COURTESY OF WIKIMEDIA COMMONS

Turkish carrier Turkish Airlines confirmed earlier in June that it would not be making a bid to buy a controlling stake in state-owned LOT Polish Airlines, leaving the Polish Treasury the task of finding a new potential buyer.

Announcing its withdrawal from takeover talks in a statement to the Istanbul Stock Exchange, the company said the deal would have made a limited contribution to its medium-to-long term plans.

Moreover, Turkish analysts say the carrier is too deeply indebted for the purchase to be a prudent one, and that, on an operational level, it is still coming to grips with its recent decision to expand its domestic fleet.

However, it appears that the main reason for the surprising decision is that, according to EU law, an investor from outside the bloc cannot acquire a stake of more than 50 percent in an EU-based airline.

German newspaper publisher Axel Springer and Zurichbased media group Ringier have agreed to pay z∏.956 million to broadcaster TVN for a 76 percent stake in Onet, Poland’s leading internet portal.

After entering into official negotiations with the SwissGerman joint venture in April, Onet owner TVN agreed to the deal, which will be the second-largest ever in the Polish media market, after Naspers’ takeover of Allegro in 2011.

The Swiss-German joint venture has significantly strengthened both companies’ operations in the CEE region with Ringier-Axel Springer now holding controlling stakes in over 100 print publications and 70 online services, including Poland’s leading tabloid newspaper Fakt.

Florian Fels, CEO of Ringier Axel Springer Media, said that reaching an agreement on

the deal is an important step in its plans to expand its already strong market position.

“The acquisition of Onet.pl is a milestone for our fledgling company, and Onet.pl is an optimal addition to our online portfolio. At the same time, after only two years, we have taken a major step towards achieving one of our most important goals: the expansion of our strong market position through investments in successful digital business models,” Mr Fels said in a statement.

“Alongside each of its leading tabloid newspapers, in future Ringier Axel Springer Media will be running the clear market leader in three of four countries, in the area of digital media,” he added.

Warsaw Stock Exchangelisted TVN’s stock price rose 2.5 percent to z∏.8.23 a share immediately after the takeover details were made public. Nevertheless, although TVN negotiated a good price, according to analysts, it will still make an impairment loss on the transaction.

The deal remains subject to approval by Poland’s competition and regulatory authorities.

Pressure is building on Russia’s Acron to raise its bid for Polish state-owned fertilizer maker Azoty Tarnów, after reports surfaced last week that the State Treasury was searching for a counter bid.

Last month Acron offered z∏.1.5 billion for a 66 percent stake in Azoty Tarnów. The State Treasury is Azoty Tarnów’s largest shareholder with a 32 percent stake.

Reuters said two unnamed sources confirmed that the Treasury was looking for another bidder, with one saying it was hesitant about the offer and was seeking a “white knight,” including domestic investment funds.

A Russian firm taking over a large state-owned Polish firm could have some political implications in Poland, where a significant portion of the population still views Russia with suspicion.

In late May, Polish Treasury Minister Miko∏aj Budzanowski said that the price offered by Acron was too low.

Meanwhile, the firm’s management has taken a hard line against the takeover bid.

“Selling to Acron would not, in any way, be justifiable,” the firm’s management wrote in a statement. “Acron’s bid has the characteristics of a hostile bid. [We] would also like to highlight the potential risks for the employees of Azoty Tarnów and their families which [this bid] entails.”

Analysts have said that Acron’s offer undervalues the company, since it has good long-term prospects following its purchase of several smaller chemical firms. Two different analysts told WBJ that they expected any offer that included a control premium to come to over z∏.40 per share.

When WBJ went to press, the Treasury had still not confirmed or denied its plans to find a counter-bidder.

Izabela Depczyk

6

BUSINESS

www.wbj.pl

JUNE 11-17, 2012

Outsourcing

A maturing market Companies based in Poland are re-investing to deliver higher-end BPO services Poland’s outsourcing sector is in rude health, developing, maturing and delivering quality employment opportunities at a time when the economic crisis continues to pose serious questions about the sustainability of many jobs.

Indeed it appears as if the downturn is actually working in Poland’s favor, since Western corporations are continuing to make outsourcing investments to reduce labor and rental costs. Between the crisis years

of 2009 and 2011, headcount in foreign service centers in Poland grew by as much as 50 percent, according to Association of Business Service Leaders (ABSL) data.

“The crisis will probably bring new business to outsourcing companies, as happened a few years before,” said Marcin Tchórzewski, vice president for Poland of US financial services provider State Street.

Moreover, Poland has reached a point where it is able to offer both competitive labor rates and highly-skilled staff capable of carrying out more complex services.

“East-Central Europe can

High rise Number of foreign services centers in Poland, 2005-2011 400 300 200 100 0 2005

2006

2007

2008

2009

2010

2011

win many new contracts, as the region provides lower costs combined with highly skilled specialists, as well as security, and Poland is the strongest country in business services in the region. What is interesting, many of the centers in our country are the headquarters of outsourcing organizations for Europe or the EMEA region,” Mr Tchórzewski said.

Reinvestment An important emerging trend which suggests the Polish market is beginning to mature is that companies already present in the country are adding more advanced services, without limiting their current operations.

Some 81 percent of services companies polled by ABSL said they planned to do just that within the next three years.

Indeed in early spring, BNY Mellon, a provider of investment management and investment services, announced plans to open a new Global Delivery Centre in Wroc∏aw, where staff will work in highly skilled roles mainly in the areas of fund accounting and investment operations. The scheme

will see the company build on its presence in Wroc∏aw.

“Poland is a central location within Europe, offering highquality staff and infrastructure, coupled with attractive economics and financial incentives,” said Michael Cole-Fontayn, chairman of Europe, Middle East & Africa.

Kraków quality State Street, meanwhile, opened a new office in Kraków in May, adding to the two locations it already has in the Malopolskie voivodship. Within the next three years, the company will look to recruit approximately 600 professionals in Poland, as well as launch its Investment Analytics service later in 2012.

“We have chosen Kraków as an additional office location from several other potential business locations in Central and Eastern Europe,” said Joseph C. Antonellis, vice chairman of State Street.

“The decision to locate State Street offices in Poland was made after a detailed analysis of localization factors such as availability of highly

qualified staff – experts able to manage complex activities for international clients,” he added, pointing in particular to the large number of well-qualified job candidates churned out by the city’s universities.

It is hoped the Kraków center will play a key role in the long-term strategy of State Street, which aims to double the share of revenues generated outside the US within the next few years. It will also offer higher-end business process outsourcing services, in line with the trend that is seeing Poland become a more sophisticated market.

“It is a key European location for fund accounting, secu-

Types of services provided in foreign centers in Poland (2011) 4% 13% Introduction of more advanced services while reducing existing scope of services No changes in the scope of provided services

On May 30, the government accepted a draft of an act on repayment of unpaid claims of entrepreneurs carrying out work as part of a public procurement contract.

The act is to secure the interests of subcontractors in case of contracts for construction work performed within the frameworks of public procurement contracts granted by

Introduction of more advanced services without reducing existing scope of services

83%

Advantage Poland Contact: Miros∏aw Stefanik ms@pnplaw.pl

Subcontractors better protected

All evidence suggests the country’s outsourcing sector is starting to mature and offer sustainable, challenging job opportunities for the country’s labor force.

“Poland has matured in the market of advanced business services. More and more key processes of the global economy are based in Poland, which provides the country with great development potential,” said Mr Tchórzewski. Gareth Price

Source: Association of Business Service Leaders

Legal News

Pursuant to the order of the Minister of Internal Affairs, border inspection has been temporarily restored on Schengen internal borders (Polish-German, Polish-Czech, Polish-Slovakian and Polish-Lithuanian borders, as well as at airports and sea ports) from June 4 until July 1 this year, in order to guarantee safety during Euro 2012.

Inspections are to be performed at random. Travelers taking benefit of their EU right to unrestricted movement have to carry documents proving their identity and citizenship. They are also obliged to possess documents authorizing them to cross the border (passport). If a person is considered to pose a threat to national security or public order, a decision will be made regarding whether to admit them.

Advanced services

Reinvestment

Source: Association of Business Service Leaders

Temporary restoration of border inspections during Euro 2012

rities valuation, exchange traded derivatives and hedge fund administration,” said Mr Antonellis.

the General Directorate for National Roads and Highways.

One of the basic assumptions is that the Directorate should be able to pay the unmet financial claims of subcontractors, up to the amount of the guarantee for the proper execution of the contract submitted by the contractor. The new regulations are to ensure that subcontractors, whose work has been performed and accepted, have the chance to obtain what they are owed even if the contractor is to be declared insolvent.

Information on special economic zones accepted On May 30, the government accepted a report into the realization of the act on Special Economic Zones (SEZs). In 2011, the number of workplaces within these SEZs increased by 16,800, 7.5 percent more compared to 2010.

Most of the new workplaces were created by the following zones: Starachowicka (increase by 39 percent), S∏upsk (by 32 per cent), Warmiƒsko-Mazurska (over 29 percent) and Mielecka (15 percent).

Since the zones began operating, entrepreneurs have invested z∏.79.7 billion in them. The majority of the capital invested in the zones (75 percent) has come from six countries: Poland, Germany, the US, the Netherlands, Japan and Italy.●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

From the point of view of BPO investors, Poland is an extremely attractive market, particularly when it comes to advanced services.

“Poland [offers] wide access to highlyskilled workers with a good command of foreign languages. It offers a package of investment incentives and has extensive modern office facilities and continuously improving

transport infrastructure,” said Marcin Tchórzewski, vice president Poland of financial services provider State Street.

“Poland is also a safe location that is stable in terms of politics, economy and social affairs, which is very significant for such investments. Our advantage is also the presence of a number of strong academic centers in various parts of the country,” he added. ●

Special economic zones

Government hopes to keep special economic zones open longer The Economy Ministry has submitted a proposal to keep them active until 2026 A proposal to extend the lifespan of the 14 special economic zones (SEZs) in Poland was recently submitted to the Sejm, the lower house of the Polish parliament, by the Ministry of the Economy. The zones are currently set to remain open until 2020, as stipulated by existing EU laws.

The submitted measure aims to extend this date to 2026.

The government has realized that it is crucial to keep the SEZs as attractive to investors as possible, since

they act as major incentives for the largest investment projects in Poland. The fear is that once the zones lose their special status in 2020, investments in Poland may decline.

In a statement released last Tuesday, the Chancellery of the Prime Minister said that “special economic zones would be the only major source of new investments in the next three years.”

Currently, one of the key incentives offered by SEZs is tax breaks. According to the ministry’s calculations, investors in Polish SEZs saved over z∏.4.9 billion due to tax breaks between 2007 and 2010. Still, the state earned z∏.3.3 billion

from SEZs over the same period, mostly from income tax and VAT receipts.

So far in Poland, 60 percent of the total possible EU-stipulated SEZ surface area has been developed.

EU funds designated for financing new investments for 2007-2013 have already been exhausted. The amount that will be available for 2014-2020 has yet to be determined, and will probably not be accessible until the middle of 2015. This is why the government is so keen to keep the SEZs open for as long as possible. Legislation is already in the works that could potentially keep the zones open indefinitely. Natalia Kopytnik

FINANCE & ECONOMICS

JUNE 11-17, 2012

www.wbj.pl

7

European crisis

Manufacturing

Time for a Spanish drama?

Polish PMI falls for second month in a row

Spain’s finance minister Cristobal Montoro said Europe should support Spain

Remi Adekoya

Slowdown to hit harder in H2 Analysts at Citibank expect the slowdown to become more visible in the second half of the year, after disappointing recent macroeconomic numbers. In their weekly roundup, economists cited slowing growth of private consumption (households are limiting spending due to labor market deterioration) and slower fixed investment growth (less infrastructure investment) as particularly telling indicators.

The analysts said that they were sticking to their forecast of 2.7 percent GDP growth for the full year (it was 3.5 percent in Q1 according to Poland’s statistical office) and expect more depreciation pressure on the z∏oty. Regarding the second half of the year, they said, “In our opinion the slowdown will become more evident in 2H 2012 due to cuts in infrastructure investment.”

They said they expected inflation to gradually ease over the next few quarters.

Regarding the weak z∏oty, they said, “Given relatively strong reliance of GDP growth on net exports and simultaneous weakness of external demand we expect the zloty could see additional depreciation pressures, especially if the economic slowdown is accompanied by rising risk aversion.”

AK

Polish car exports to fall this year After a record 2011, the Polish automotive industry is expected to see a slowdown this year, due to lower demand in Western Europe, reported Rzeczpospolita.

In January, exports of cars and car parts fell 4.5 percent

y/y to €1.5 billion, while in February exports were down 3 percent. For full-year 2012, exports are expected to drop by between €1.3 and €1.8 billion, according to analysts.

“In the long term, this situation may change when new

models hit the factories. But this year, improvements will not occur. The export markets are stuck in a recession,” said Andrzej Halarewicz of Jato Dynamics, a provider of automotive data and intelliGP gence.

Foreign banks withdraw capital In the last three quarters, the value of funds in the coffers of the Polish affiliates of foreignowned banks has dropped by z∏.15 billion – or 8.6 percent – of their overall value, Puls Biznesu reported.

Although this is not a mass

withdrawal, the Polish Financial Supervision Authority (KNF) is troubled by this trend. If not for the KNF's actions, the foreign owners would probably have withdrawn even more from Poland, the newspaper said.

There are signals that money has been withdrawn from the CEE region, including Poland, in order for foreign owners to meet new liquidity requirements which will become law at the end of RA June.

New export business was notably weaker

put fell for the first time since July 2009.

“Having returned into the contraction zone in April the PMI index in Poland fell further in May. It has been driven by a weakening output and collapsing new export orders.

The incoming euro-zone data points to this deterioration likely extending in the coming months,” Agata Urbaƒska, economist at the Central & Eastern Europe division of HSBC, wrote in a statement accompanying the PMI GP release.

Poland’s Purchasing Managers’ Index (PMI) eased last month to 48.9 points from a 49.2-point reading in April, thus falling for a second consecutive month.

A figure above 50 indicates expansion in the manufacturing sector while anything below suggests contraction.

New orders continued to decline, with new export business notably weak, while out-

Industrial decline Poland’s PMI, May 2011– May 2012 57.0 2011

2012

54.5 * Indicates improvement on the previous month 52.0 49.5

Ap ril Ma y

e Ja r nu a Fe ry br ua ry Ma rch

er

mb

mb

ce

ve

No

De

r

er

tob

Oc

be

st Se

pt

em

ly Ju

gu Au

y

47.0 ne

chancellor of the Exchequer, seems to agree with Mr Montoro, telling BBC reporters, “You would need to sort out immediately the situation in the Spanish banking system and resolve the uncertainty there.”

Also, European Internal Markets Commissioner Michel Barnier said in Brussels that it is important to “adopt emergency policy measures where required, for example, in Spain, given certain banking difficulties.”

However, Spain has since sought to downplay talk that any rescue plan for its banks is imminent, with Economy Minister Luis de Guindos telling reporters in Brussels that “there has been no [talk] of rescuing [Spanish banks], and that a review of the Spanish banking sector’s needs would show problems are “limited to certain entities.”

So far, Germany in particular has resisted calls from Spain and other euro-zone countries to allow Spanish banks direct access to the European Stability Mechanism, which has established to bail out European governments with fiscal problems.

Ju

Spain was not asking for an “astronomical” amount and so the EU should not have a problem in preparing such an aid package.

Investment bank JP Morgan estimates that Spain needs up to €75 billion to recapitalize its banks, although some other analysts estimate the figure at closer

COURTESY OF WIKIMEDIA COMMONS

Last week, Spanish Finance Minister Cristobal Montoro stated that although his country can cope with servicing its debt, “European institutions should support Spanish banks.” He added that “it is important for the EU to open up and help us achieve the aim of stabilizing the situation in the banking sector.” He said

to €100 billion.

Spain’s borrowing costs have been above 6 percent for the past month, levels widely considered unsustainable over a protracted period. Investors fear that the Spanish government will have to cover some of the huge losses that the country’s banks are expected to suffer on their property-loan portfolios, this at a time when its budget is already under pressure from a shrinking economy and rising unemployment.

George Osborne, the UK’s

Ma

An increasing number of European politicians – including some in Spain – are now openly suggesting that the euro zone’s fourth-largest economy may need external financial aid

Source: Markit

8

INTERVIEW

www.wbj.pl

JUNE 11-17, 2012

The Polish right

An alternative to PiS Ewa Boniecka: How would you describe Solidarity Poland’s political profile?

Zbigniew Ziobro: I would stress that we are a party on the right that emphasizes the value of national solidarity and national identity, but is open in its character and is ready to cooperate with others.

In economic matters we favor giving the free market a chance, but we don’t close our eyes to the social divisions which have occurred in Poland over the last 20 years.

We favor a progressive system of taxation, not a flat tax, which is what [government coalition majority party] Civil Platform supports, and which was once supported by Law and Justice.

While Civic Platform is devoid of ideology – comprising members who are both very conservative and very liberal – Solidarity Poland is a coherent and modern conservative party.

In what way does Solidarity Poland distinguish itself from [Poland’s largest opposition party] Law and Justice (PiS), and how do you differ from that party’s leader, Jaros∏aw Kaczyƒski?

Law and Justice is a party with dictatorial leadership. There is only the will of Jaros∏aw Kaczyƒski, and everybody who has his or her own opinion is

kicked out of the party, as was my case. In contrast, Solidarity Poland is more democratic, allowing for consultation in the decision-making process.

The leader has to take into account the will of other party members. The mechanism of decision-making is so democratic that I am the only party leader in Poland who can be removed from his position at any minute.

The other difference between our party and PiS is that our attitude towards problems is rational, not based on emotion. You can see this in the way we criticize the government’s policy in certain areas as well as in our attitude towards foreign policy. We favor the idea of a Europe of nations. We are wary of federalism in the EU, but we do not react to the idea as if we were allergic to it – we are open to discussion.

In short, we are a party that is willing to include some nuance in our approach to specific problems, while maintaining our basic principles.

You contend that the emergence of Solidarity Poland would increase the electoral chances for Poland’s political right, while Mr Kaczyƒski says that your party is destroying the right’s unity.

How do you respond?

The history of the last few

years should be instructive for the Polish right. Jaros∏aw Kaczyƒski managed to build unity on the right, but PiS has lost six consecutive elections with him at the helm. In the last election it did not even manage to gain more than 30 percent of the vote, even though it did not have any competition on the right. So in my view the only chance for PiS to gain power is the success of Solidarity Poland, and it is already clear that the presence of our party is mobilizing PiS to do more. PiS will have its own supporters, we will have ours, and our competition will mobilize more people with conservative views to participate in elections.

The logical conclusion, then, is that if both PiS and Solidarity Poland do well in the next parliamentary elections, you would be ready to form a coalition. Is that right?

We could cooperate, but only if PiS becomes more democratic. We would not accept the dictatorship of a politician who is unpredictable in his decisions and then share responsibility for such decisions.

After Mr Kaczyƒski announced he would not run in the 2015 presidential election, you said you would run and be the “candidate of the right.” However, he has since changed his mind, and now says he will run. Do you therefore plan to withdraw from the race?

Absolutely not. My candidacy was decided upon by the

COURTESY OF THE EUROPEAN PARLIAMENT

Zbigniew Ziobro, the founder and leader of the Solidarity Poland party, sits down with WBJ to talk about how his party differs from Law and Justice, his break with Jaros∏aw Kaczyƒski and his presidential candidacy

Solidarity Poland is bringing much-needed competition to the Polish right, says Zbigniew Ziobro entire Solidarity Poland party and as leader I want to run, and I must. I stick to my decisions, which differentiates me from Mr Kaczyƒski, who changes his mind frequently.

The opinion polls show that there wasn’t a big difference between me and Jaros∏aw Kaczyƒski in terms of support, so we proposed a “primary” to choose one candi-

date from the political right.

But this was rejected by PiS. We will return to that proposal, counting on Jaros∏aw Kaczyƒski to do the wise thing, and hopefully such a

INTERVIEW

JUNE 11-17, 2012

primary could be held before the 2014 local elections.

Solidarity Poland’s level of support stands at just around 5 percent. How is the process of building party structures across the country going?

Building our structures is a big challenge, but we have threeand-a-half years until the next parliamentary election and two years until European Parliament elections. We don’t have any funds from the state

But if your party fairs poorly in the EP elections, your political position will be much weaker. Do you see this as a risk?

Of course, but there is plenty of risk involved in politics. We have consciously chosen to participate in all elections, and the EP elections are the first in line. Big constituencies are established in those elections, so building the lists will not be so difficult and I am sure that our well-known candidates,

“Law and Justice is a party with dictatorial leadership. There is only the will of Jaros∏aw Kaczyƒski” budget – the system of political financing favors the big parties, who are becoming very business-savvy and have a big advantage over smaller parties, which do not receive any state support.

Nevertheless, we are overcoming obstacles and organizing meetings in many places. In the bigger cities they are attended by many young people with modern conservative views, in smaller ones there are various generations. I think that we will succeed in building our party structures.

In the previous European Parliament elections you won a seat as a member of PiS. Will Solidarity Poland present its own candidates in the next EP election and are you going to run?

We will present our list of candidates for the EP elections and we have respected and recognizable politicians who will run. As the leader of Solidarity Poland, I have to run, because the party and its activities are tested through democratic elections. It will be our first electoral test and my candidacy in the presidential election does not prevent me from running for the European Parliament. It’s natural in a democracy that politicians change office, so I do not see any contradiction here.

including new ones such as Beata Kempa, will be successful.

Do you want to get away from the previous image of the tough sheriff you gained as justice minister and prosecutor general in the [2005-2007] PiS government?

My role in politics was linked at that time with efforts to improve security and to fight corruption, and I was consistent in doing that. But now my role is different. I have not forgotten about my goals for making Poland a country that respects the rule of law and that has high standards for honesty in politics. But the problems facing me as the leader of the party are wider, concerning economic matters, social matters and health care.

A commission led by SLD politician Ryszard Kalisz has recommended that you be tried before the State Tribunal for your actions while you were justice minister. How do you see this situation?

I know that this motion against me has no merit. The various prosecutors conducted inquiries, the courts dealt with the matter and all of them found that the general prosecutor’s office, which I led, acted lawfully. I would be very pleased to stand before the State Tribunal, because I would have a chance to pres-

ent my record on fighting corruption – with free TV time, too. So from my point of view, it would be politically profitable, but I know that this motion will not go any further.

The 2010 Smolensk disaster is an issue that is frequently brought up by PiS and still divides Poles. How do you see the current state of affairs?

We want to deal with this painful matter in a professional way. It was a terrible tragedy and we should do everything to explain what happened. We know that Russia is making it difficult for Poland to gain access to all of the materials, and is harming Poland through promoting its version of events.

But what differentiates Solidarity Poland from Law and Justice is that we do not make suppositions without hard evidence. PiS’s language, that we are “entering into a war with Russia,” because of its stance on the tragedy, neither serves to explain what happened nor adds to Poland’s international prestige.

If we were to gain power in Poland we would maintain assertive relations with Russia.

We would firmly demand the return of the wreck of the airplane, but we would present our accusations according to facts and documented truth, not according to our suspicions. This is possible on the part of journalists, but the politicians should have another approach.

So our take on the Smolensk catastrophe is not the same as PiS’s. We are very critical of the government’s work on the matter, and we think that the Russian side is partly responsible for the catastrophe because the Smolensk airport was ill prepared and the people in the control tower gave the wrong information to our pilots. But if we are to claim that it was an assassination attempt, we should present evidence. We want to explain the disaster without overwhelming emotions, but also to come to a final conclusion.

It is the duty and obligation of our state to do that, but it still has not been accomplished. ●

Zbigniew Ziobro Zbigniew Ziobro was born in 1970 in Kraków.

He is the current leader of Solidarity Poland, but used to be deputy leader of Law and Justice (PiS) before he was expelled from the party in 2011. He was justice minister and prosecutor-general of Poland from 2005-2007, when PiS was in power. Mr Ziobro was a mem-

ber of the Polish parliament from 2001 to 2009 after which he successfully ran for a seat in the European Parliament.

He was known as PiS’s “sheriff” in the fight against corruption when he was justice minister and was often accused of high-handedness while in office.●

www.wbj.pl

9

10

OPINION & ANALYSIS

www.wbj.pl

JUNE 11-17, 2012

Ukraine’s own goal Leszek Balcerowicz

P

olitics and sports are often an incendiary mix, as the controversy now swirling around the Euro 2012 soccer championship demonstrates. German Chancellor Angela Merkel, European Commission President Jose Manuel Barroso, and other European Union leaders have all said they will boycott matches held in Ukraine, owing to the imprisonment of former Prime Minister Yulia Tymoshenko and other opposition figures.

Why, two decades after communism ended and Ukraine gained its independence, does the country remain mired in economic torpor and an authoritarian politics that has aroused such ire in Europe? When a country like Ukraine develops slowly and remains poor, it is not because of natural disaster or resource constraints. Bad policies pursued by bad governments are to blame.

Limits to power Contrary to what many Western economists think, the worst economic breakdowns are not the result of free markets gone haywire, but of excessive concentration of political power. To insure against the worst human and economic catastrophes, limits to political power must be

introduced and a system of checks and balances maintained.

Witness the divergence in longrun economic growth between the Euro 2012 co-hosts. Poland’s GDP has almost doubled over the last 20 years, while Ukraine is still barely maintaining the output level recorded during the last year of socialism.

Generally speaking, Central and Eastern European countries have performed better economically than the ex-Soviet countries (with the exception of the Baltic states).

Economic growth is a matter not just of quality of life, but of quantity as well. Child mortality rates have declined in all Central European countries over the past 20 years, especially in Poland, where the rate fell from 17 per 10,000 live births to seven. In the Czech Republic and Slovenia, life expectancy has increased from 71 to 77, similar to other Central European countries.

In Ukraine, by contrast, underfive child mortality rates have fallen only slightly, from 25 per 10,000 live births to 24, while life expectancy has declined from 70 years to 68. The same stagnation applies to Russia.

Democracy is key The post-communist record shows

that the countries that reformed most successfully are also the most democratic – indeed, as democratic as any in the West. The worst economic outcomes in the region are found in countries that have diverged from democracy.

Democracy is not a panacea, but non-democratic regimes usually pursue worse economic polices than democratic governments do. The former engage in predatory and unpredictable regulation, which produces a bad business environment.

Another danger is heavy taxation.

Official taxes are high when spending is high. When spending is high, it is usually social spending that is badly targeted, which means that only a small share of poor people really benefit. Moreover, corruption payments should be added to official taxation.

It may turn out that most businesses are hit by heavy taxation of both varieties – so heavy that the economy cannot grow, as appears to be the case in Ukraine.

Furthermore, uneven protection of property rights – crony capitalism – means that a small number of businessmen are politically favored. They may pay lower taxes, or their competitors may be subject to raids by the authorities. Because the state uses its

apparatus to deter competition – both informally, through arbitrary enforcement of property rights, and formally, through trade restrictions – crony capitalism is not only unjust, but also inefficient. Individual businessmen may succeed, but the economy will not. Without competition, capitalism works only a little better than socialism did.

Clear separation A key ingredient of Poland’s success in the last 20 years was a clear separation, from the very beginning of the postcommunist transition, between politics and business. There were uniform rules and equal protection for everyone. Poland introduced massive competition by dismantling monopolies and opening its economy to the world.

Moreover, Poland avoided extreme booms and the deep recessions that follow. Most booms are produced by bad monetary and fiscal policies. This is true of the recent boom-bust sequence in Spain, Ireland, the United States, the United Kingdom, Bulgaria, and the Baltics, among others. In Ukraine, too, a huge boom in 2004-2007 was followed by a contraction amounting to almost 15 percent of GDP in 2009 – a direct result of domestic policies.

Ukraine’s record over the past 20 years demonstrates that it is not enough to abolish socialism. The real challenge is to build free-market, rule-based capitalism. And, to do that, an energetic civil society must demand an end to crony capitalism.

Ukraine’s citizens can become more

“Non-democratic regimes usually pursue worse economic polices than democratic governments do” like their Central European neighbors, or they can allow the economy’s many distortions from past bad policies to persist, in which case they will fall further behind. ● Leszek Balcerowicz, is the former deputy prime minister and finance minister of Poland and a former president of the National Bank of Poland. He is currently professor of economics at the Warsaw School of Economics.

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

Is global financial reform possible?

Paul Volcker

T

here is ample evidence nowadays that financial systems, whether in Asia in the 1990s or a decade later in the United States and Europe, are vulnerable to breakdowns. The cost in interrupted growth and unemployment has been intolerably large.

“When any country is left to its own policy devices, its preferences may lead to prolonged and ultimately unsustainable imbalances” But, in the absence of international consensus on some key points, reform will be greatly weakened, if not aborted. The freedom of money, financial markets, and people to move – and thus to escape regulation and taxation – might be an acceptable, even constructive, brake on excessive official intervention, but not if a deregulatory race to the bottom prevents adoption of needed ethical and prudential standards.

Perhaps most important is a coherent, consistent approach to dealing with the imminent failure of “systemically important” institutions.

Taxpayers and governments alike are tired of bailing out creditors for fear of the destructive contagious effects of failure – even as bailouts encour-

age excessive risk taking.

By law in the US, new approaches superseding established bankruptcy procedures dictate the demise rather than the rescue of failing firms, whether by sale, merger, or liquidation. But the success of such efforts will depend on complementary approaches elsewhere, most importantly in the United Kingdom and other key financial centers.

A different approach Strict uniformity of regulatory practices may not be necessary. For example, the UK and the US may be adopting approaches that differ with respect to protecting commercial banks from more speculative, proprietary trading, but the policy concerns are broadly similar – and may not be so pressing elsewhere, where banking traditions are different and trading is more restrained. But other jurisdictions should not act to undercut the restrictions imposed by home authorities.

Closely related to these reforms is the reform of the international monetary system. Indeed, one might legitimately question whether we have a “system” at all, at least compared to the Bretton Woods arrangements and, before that, the seeming simplicity of the gold standard. No one today has been able to exert authority systematically and consistently, and there is no officially sanctified and controlled international currency.

Arguably, the ideal of a welldefined and effective international monetary regime has become more

difficult to realize as markets and capital flows have become vastly larger and more capricious. Indeed, the global economy, it is said, has grown – and emerging countries have flourished – without a more organized system.

But what is too often overlooked is that international monetary disorder lay at the root of the successive financial crises of the 1990s, and played an even more striking role in the crisis that erupted in 2008. The sustained and, in a sense, complementary imbalances in the US and Asia stand out.

From 2000 to 2007, the US ran a cumulative current-account deficit of roughly $5.5 trillion, with nearly symmetrical offsetting increases in reserves in China and Japan. China found it useful to run a large trade surplus, using a very high rate of internal savings and inward foreign investment to support its industrialization and rapid growth.

By contrast, the US, in the face of slow growth, was content to sustain exceptionally high levels of consumption at the expense of personal savings, inflating a massive housing bubble that burst with a very large and deeply disturbing bang.

The practical and inescapable lesson is that when any country is left to its own policy devices, its preferences may lead to prolonged and ultimately unsustainable imbalances. Sooner or later, adjustment will be necessary – if not by considered domestic policy or a well-functioning international monetary system, then by financial crisis.

Not so long ago, we were comforted by theorizing that floating exchange rates would mediate international adjustments in a timely and orderly way. But, in the real world, many countries, particularly but not limited to small, open economies, simply find it impractical or undesirable to permit their currency to float.

Surrendering sovereignty We are left with the certainty, however awkward, that active participation in an open world economy requires some surrender of economic sovereignty. Or, to put the point more positively, it requires a willingness to coordinate policies more effectively. The possibilities include: stronger surveillance by the International Monetary Fund and a firmer commitment by countries to abide by “best practices” and agreed norms; direct and public recommendations by the IMF, the G-20, or others, following mandatory consultation; qualification or disqualification with respect to the use of IMF or other credit facilities (for example, central banks’ swap lines) and interest or other financial penalties or incentives along the lines under consideration in Europe.

But, if approaches that build on past failure do not seem sufficiently effective, perhaps a new approach toward currency fluctuations would be more promising. That would require some agreement about appropriate “equilibrium” exchange rates, with a fairly wide band that

would allow for uncertainty and permit the market to exert its own discipline. But individual countries would orient intervention and economic policies toward defending the equilibrium rate, or, more radically, an international authority might authorize aggressive intervention by trading partners to promote consistency.

An appropriate reserve currency and adequate international liquidity represent another central concern.

For years, the pragmatic answer has been the dollar, and to some extent other national currencies, giving rise to complaints of an “inordinate privilege” for the US. But it is not in America’s interest to accentuate and extend its payment deficits at the expense of an internationally competitive economy with strong industry and restrained consumption. And the rest of the world wants the flexibility afforded by the currency of the largest, strongest, and most stable economy.

A useful reserve currency must be limited in supply, but have sufficient elasticity to satisfy the large, unpredictable needs that may arise in a turbulent financial world. Above all, confidence in its stability and availability must be maintained, which highlights the practicality of a national currency, or perhaps a variety of national currencies. ● Paul Volcker is a former chairman of the US Federal Reserve Board.

Copyright: Project Syndicate/Fung Global Institute, 2012. project-syndicate.org

OPINION & ANALYSIS

JUNE 11-17, 2012

www.wbj.pl

11

Kicking away old stereotypes Andrew Kureth

A

“When people arrive in Poland it won’t be at all what they are expecting” But when those people get off the plane at the new, modern terminal at Chopin International Airport, and step on to the newly opened rail line that takes them straight from the airport to the center of the city, it will cause no little shock. They will look at the shiny new trains, with audio greetings in English, Russian and Greek, and wonder if their plane has indeed landed in Poland. It won’t be at all what they were expecting.

Not just gray Recently, a foreign journalist told me of a thought experiment he likes to conduct with his friends who haven’t yet been to Poland. “Close your eyes, and think of Warsaw,” he tells them.

COURTESY OF MARCIN BIA¸EK/WIKIMEDIA COMMONS

great number of foreign fans who visit Poland this month are going to be surprised with what they find. Poland is often (still, lamentably) associated with babushkas and bread lines in the minds of many Westerners. In Western Europe, that stereotype is giving way to the “Polish plumber” trope – a hard-working, not-so-great-English-speaking immigrant who does low-pay or blue-collar jobs – the types that have come over en masse since Poland joined the European Union.

Saxon Garden in downtown Warsaw Then he asks, “Did you just think of the color gray?” Invariably, he said, the answer is yes.

But what a surprise when fans with similar ideas reach Warsaw’s city center to see skyscrapers like the InterContinental hotel and Rondo 1 – and especially the soon-to-be fin-

ished Z∏ota 44, designed by none other than Daniel Libeskind. It won’t be all gray communist apartment blocks (though yes, there still are some of those) as they expected. Perhaps before the match they’ll take a walk down Krakowskie PrzedmieÊcie, and marvel at the beautiful statues

and churches, or take a stroll through Saxon Garden (Ogród Saski), with its sculptures and 19th-century fountain.

Fans will have similar experiences in Gdaƒsk, Poznaƒ and Wroc∏aw.

Poland will be greener, more modern, and generally more pleasant than most expect.

They’ll find Poles are differ from their expectations as well. Far from a country of “Polish plumbers,” Poland’s economy contains a vibrant mix of IT experts, engineers, scientists, artists and entrepreneurs. Its students are some of the best-educated in the world.

And though the international media has chosen to focus on racism and anti-Semitism here in Poland, fans of all races and creeds will find the vast majority of Poles open and welcoming.

Of course, like any country, Poland has its share of problems.

Unemployment is high, average incomes are far lower than in Western Europe, and while the stadiums and train stations have been modernized, there is still much improvement needed throughout Poland’s entire infrastructure.

Racism is also an issue that must be dealt with, but its scale is far smaller than the BBC and Guardian reports would have you believe.

Fans coming here for the first time will see all of this, and will bring back stories to their homelands, hopefully changing some of the silly stereotypes about Poland that persist.

Poland is a vibrant, modern, beautiful European country just coming into its own. It’s about time more people realized that. And now, due to this tournament, they will. ● Andrew Kureth is editor in chief of Warsaw Business Journal.

Read his blog, “From the editor” on WBJ.pl

Eastern Europe’s reputation on the line Remi Adekoya

F

rom June 8 to July 1, the attention of the world will be fixed on Poland and Ukraine as they co-host the Euro 2012 soccer championship.

For the first time since communism collapsed over two decades ago, ordinary people from every continent on earth will be reading daily news about Poland and watching Polish cities on their TV screens. The impression they get during these three weeks is likely to be the one that will remain in their minds for a long time to come.

Low expectations Most foreigners are not expecting much, either from Poland or

Ukraine. In their minds this is Eastern Europe, the continent’s backwater where communism ruled not so long ago. Some wonder why UEFA ever decided to award the tournament to these two countries in the first place. All this is very good news for Poland.

During a political debate, all the pressure is on the candidate who is expected to do better. He needs to deliver the verbal knock-out or else people feel disappointed with his performance. He needs to be perfect.

Meanwhile, the candidate of whom little is expected is in a much better situation. If he puts in even an average performance, people come away feel-

ing impressed because they had been prepared for much worse.

Intertwined fates The same can be said for Poland during Euro 2012. If the tournament goes relatively smoothly, visiting fans and TV audiences will sit up and take note. They will be positively surprised and probably end up giving Poland some good word-ofmouth PR, exactly because of their surprise that things went so smoothly. Paradoxically, then, Poland could actually end up benefiting a great deal from the negative perceptions that this part of Europe still conjures up in the minds of many.

Poland is unlikely to stumble. The

danger, however, is that things might go wrong in Ukraine. Its infrastructure is in poorer shape and many of their cities haven’t changed much since the end of the communist era.

Let’s not fool ourselves: for most Euro 2012 viewers around the world, Warsaw might as well be in Ukraine and Kiev in Poland for all they know.

This is a part of the world which simply does not have any famous cities and has not attracted much interest from the rest of the world, so if Ukraine makes a blunder, Poland’s reputation will also suffer and viceversa. The impression left will be that “Eastern Europe” in general is still backward.

And so, those keeping their fin-

gers crossed for Poland to succeed should be doing the same for

“In their minds this is Eastern Europe, the continent’s backwater” Ukraine. For if one fails, the other will also pay the price in the court of world opinion. ● Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL) CO-MANAGING EDITOR

ALICE TRUDELLE (ATRUDELLE@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

SPORTS & LIFESTYLE EDITOR

DAVID INGHAM (DINGHAM@WBJ.PL)

POLITICS EDITOR

REMI ADEKOYA (RADEKOYA@WBJ.PL)

JOURNALIST

IZABELA DEPCZYK

CONTRIBUTORS

E. BLAKE BERRY EWA BONIECKA PIOTR ÂLUSARSKI ALEX ZARGANIS COLUMNISTS

ANDREW NAWROCKI ADAM NARCZEWSKI INTERNS

ANTHONY ADAMS NATALIA KOPYTNIK

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) PRODUCTION MANAGER

PIOTR WYSKOK

MARKETING &SALES

MANAGING DIRECTOR MONIKA STAWICKA

KAROL KOSIOREK (KKOSIOREK@WBJ.PL)

AGNIESZKA BREJWO MARKETING &SALES DIRECTOR

(ABREJWO@WBJ.PL) GRAPHIC DESIGNER

¸UKASZ MAZUREK

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

PR & MARKETING SPECIALIST

NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL) SUBSCRIPTIONS MANAGER

AGNIESZKA KUCZY¡SKA (AKUCZYNSKA@WBJ.PL)

PRINT & DISTRIBUTION COORDINATOR

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

IN DEPTH

www.wbj.pl

Euro support at 12% Fifty-eight percent of Poles think that replacing Poland’s national currency with the euro would be detrimental to the country’s economy, according to a TNS Polska survey. Only 12% think it would be positive for the country, while 22% think it would have a neutral effect. Just 8% expressed no opinion.

Opposition to adopting the euro has grown by 3 percentage points since the poll was last conducted (from 55% to 58%).

Poles expected to buy less alcohol Alcohol sales in Poland are expected to drop by 7.5% by 2016. Demand for beer is expected to decline by 9%, and 4.4% for vodka, according to estimates from the Polish Spirits Industry and the institute of International Wine Spirits Research (IWSR).

On the other hand, sales of wine, whiskey and mixed drinks are expected to grow. ●

JUNE 11-17, 2012

Religious promotion

Selling religion Piotr Âlusarski The Polish church has turned to modern means to win back its flock It’s called “The mp3 version of the Holy Bible” and it’s a new Facebook page run by Benedictines from Tyniec, in southern Poland. “A great solution for the overworked, for drivers, commuters and all those feeling the need to listen to the word of God,” reads the page’s description. “We’re working to refute the stereotype that the scripture is difficult and not adjusted to contemporary people who lack time to get familiarized with it,” the monks explain.

To make sure word of their initiative is spread offline as well, Benedictines encourage all interested parties to save to disk, print out and put up wherever possible a special promotional poster. According to the brothers from Tyniec, the initiative itself – which has to date gathered more than 7,000 fans on Face-

book – is the first of its kind in the world.

Religious values are being promoted throughout Poland via means usually associated with professional marketing.

In the winter of last year, Gorzów Wielkopolski saw a huge wall screen downtown, advertising the local parish of St. Maximilian Kolbe. At around the same time, the church of St. Stanis∏aw and Boniface in ÂwinoujÊcie held a rock-music mass to attract local youths, and the Dominican Campus Ministry, “Beczka,” in Kraków marketed Lent with posters of attractive people wearing elegant clothing.

“If someone asks why you’re tarted up like that, have the courage to say: ‘Because I fast,’” Beczka wrote on its website, pointing to the words of Jesus: “When you fast, put oil on your head and wash your face.”

Brand strength The latest report by pollster CBOS shows that over 93 per-

cent of Poles consider themselves Catholics, but only just over half of them (54 percent) attend mass at least once a week. Some 20 percent do so only a few times a year and about 8 percent do not participate in religious practices at all. This latter group is growing and the phenomenon can be observed particularly among young people, city dwellers and people with higher education.

“The departure of [Pope] John Paul II … initiated the process of turning away from institutionalized forms of religiosity in our country,” CBOS analysts wrote.

Still, as they emphasize, religiosity has been stable for the last three years. One-third of those who partake in church ceremonies barely a couple of times a year and one-fourth of those who choose not to partake in them at all, claim that they are, more or less, of faith.

In marketing terms, they are believers who lack a “reason to believe” that they need to regularly visit a religious building to be of faith.

“RTB – reasons to believe – is what most brands trip up on by saying they have that magic something when in fact they don’t. As soon as consumers see it’s not there, they leave a brand behind,” said Maciej Tes∏awski, rector of the Marketing Communication Academy. “If the church is to sell peace of mind then during

SHUTTERSTOCK

12

Analysts found that the Catholic Church began to lose members after the death of John Paul II mass I don’t want priests telling me who to vote for.

This brings about a post-purchase trauma: I bought the idea of going to church but once I got there I realized it’s not what I wanted to buy,” said Mr Tes∏awski.

“The time of shepherds is coming to an end – now we need to be fishermen” Not only those who want to listen to what is being preached from the pulpit are on the decline – those willing to preach themselves are shrinking in number as well.

According to the National

Council for the Pastoral Care of Vocations, every year since 2007 the list of submissions to diocesan and monastic seminaries has been shorter by 50 names.

Inevitably, the brand value of the church is getting weaker. The last Brand Asset Valuator study (2010) – a ranking of the most popular consumer and non-consumer brands in Poland – found the Catholic Church occupied 112th place and that it had suffered the most in recent years when it comes to “respect.” Back in 2004 it took 14th position, right after food company Knorr and just before confectioner Wedel.

“The time of shepherds is coming to an end – now we need to be fishermen,” stressed Jesuit Remigiusz Rec∏aw.

Continued on p. 13 ➡

Calling on fish and fishermen A group of young men stand on a soccer pitch. One of them rests his foot on Tango 12 – the official ball of Euro 2012 – wearing long socks and soccer cleats along with a traditional black church robe. Right next to him there’s a logo of the Gdaƒsk Theological Seminary, while up in the corner a caption reads: “Join the team called up by God.” This poster circulated in newspapers, on internet portals and on the TV at the beginning of April this year. The pitch visible on the poster is the one in PGE Arena – a newly built stadium in Gdaƒsk, one of the eight where the European championship hosted by Poland and Ukraine is being held.

Apart from slogans and images targeted at regular churchgoers, a growing number of promotional campaigns have emerged to encourage graduates to put on cassocks and habits. It’s not just about the fish; it’s about their future fishermen as well. “Our vocational activities may help make up one’s mind but it’s not as much a question of choice as a response to being chosen – by God,” admitted Rev. Jacek Kacprzak, prefect of the seminary in ¸ódê.

That seminary is known for its unusual marketing initiatives. Recently it has been looking for students on Facebook where a

photo of priests depicted as builders was posted. “Church under construction. Free admittance” reads the slogan that advertised a vocational retreat for post-secondary and university students. Last year the ¸ódê seminar launched “Become a 48-hour cleric” campaign to reach out to all those willing to spend two days “for a trial run” within the academy walls and live like its members. “The media interest exceeded our expectations,” recalled Rev. Kacprzak. Ultimately 15 people enrolled, including two from the UK. Meanwhile, the orders are not falling behind. “Tough guy? No, a Jesuit,” says one poster of a macho man with a dog-collar.

“We’re no angels, we’re just doing their job,” claim Jesuits on another poster. Franciscans and Capuchins have similar ads too.

Fr. Remigiusz Rec∏aw – author of the aforementioned posters – said they’re about building a positive impression, not making people come in droves. “These are not sales campaigns,” pointed out Maciej Tes∏awski, rector of the Marketing Communication Academy. “The image-building comes first, sales is only the second phase of the operation – just as image becomes desirable for a target group.” ●

Everything you need to Your guide to the 16 teams Poland’s glory days saw the know for a short stay in at this summer’s Euro 2012 team reach a World Cup Warsaw 2-5 tournament 6-7 semi-final in 1974 8

B E S T O F W A R S A W E U R O 2 0 1 2 F A N G U I D E B R O U G H T

T O

Y O U

B Y

W A R S A W

JUNE 11-17, 2012

I N S I D E R

COURTESY OF WARSAW CITY HALL

Getting to know the capital

You might be thinking of locking yourself in a darkened room to watch the tournament from the sanctuary of your sofa. Forget it – the party is out there waiting.

Official Fan Zone Pl. Defilad.

Open 10:00 am – 1:00 am (closing times will be extended for bigger games).

Built to handle 100,000 fans, the official Warsaw fan zone promises to be the largest such project ever realized. Covering a floor plan of 120,000 sqm, features include eight giant

screens for matches, two concert stages and 400 toilets. Set in the open spaces around the Palace of Culture, the zone has been carved up among numerous sponsors, each of which promise something different: Carlsberg will be handling the beer situation thanks to a twofloor bar, while a controversial McDonald’s – occupying the spot slated for Warsaw’s Muse-

um of Modern Art – will tout a mysterious contraption called a “Giant Passion Meter.”

Orange has revealed plans for an open-air cinema, as well as a Robo-Keeper at whom fans can crack shots at. Adidas claims that if you come around to their corner, you’ve got a chance of meeting players, and Pekao Bank is on hand for currency exchange, pre-paid cards and other banking services.

Alternatively, head to MasterCard for the inglorious chance to be a ref for the day.

Admission is free.

Carlsberg Fan Camp ul. Wybrze˝e Gdaƒskie 4, www.carlsbergfancamp.pl This temporary camp site/entertainment heaven includes soccer fields, big screens and accommodation, as well as a palm-lined artificial beach, music stages, catering and, of course, loads of Carlsberg beer.

The Rest Expect soccer overload in the pubs and bars of Warsaw, and you’ll find expat haunts like Bradley’s, The British Bulldog and Legends all packing

out over the course of the tournament. In the hotels, Champions (Marriott), Someplace Else (Sheraton) and Hemisphere (InterContinental) will also fulfill any soccerviewing needs. Few places, if any, have made a bigger effort than the Warsaw Tortilla Factory. Each and every game will be complimented by a “Half Time Variety Show,” with entertainment provided by MC Barry Solone, African drummers, soccer tricksters, body-painted party gals, cashprize sweepstakes and a series

of live music acts. Aiming to generate a carnival spirit, some memorable, wobblylegged nights are completely guaranteed.

Alex Webber

In this supplement Essential Warsaw . . . . . . . . .2-3 Insider recommends . . . . . . .4-5 Team profiles . . . . . . . . . . . . .6-7 Polish retro soccer . . . . . . . . . .8

2

BEST OF WARSAW

www.wbj.pl

JUNE 11-17, 2012

Essential Warsaw

72 hours in Warsaw

Alex Webber

Pushed for time? Warsaw Insider brings you the best ways to get the most out of Warsaw Personally speaking, I don’t need a timetable when I find myself following England abroad. That’s always a one-dimensional affair with no planning required: Stake your territory with a Bristol City flag, bask like a seal in a beer garden, fail to score tickets then shout at a screen in a murky-looking dive.

Happy days, and certainly a schedule I’ll be keeping this summer. Of course, not all visitors this June will be viewing Euro 2012 as a jumbo-drinking challenge. And why would they? The Warsaw of today is not short of attractions, sights and curiosities.

With your time no doubt limited, we bring you the best:

DAY 1 Morning Central Station: No matter how you arrive, you will pass

SHUTTERSTOCK

through Central Station. Opened on December 5, 1975, to coincide with Leonid Brezhnev’s junket to the 7th Workers’ Party Congress, it was trumped as a triumph of socialism: out-of-towners mobbed the place to gawk at space-age touches like Italian clocks and escalators from France … the nation’s first vending machine, even. Constructed in under 1,000 days, sloppy workmanship soon became apparent, and in the following years the station rotted into ruin. Now though, thanks in part to the Euro 2012 tournament, this evil concrete underworld has been reinvented with designer toilets and electronic timetables that measure waiting times by the amount of cheeseburgers your guts can process at the nearby McDonald’s.

Warsaw’s Old Town is a UNESCO World Heritage site obliteration. While one side is being busily redeveloped, the other offers an eerie glimpse into the past: propped up by wooden scaffolds, the empty blackened tenements lean inwards on the street, lending a spooky feel to this part of town.

Palace of Culture: Resist the temptation to lose yourself in the

Afternoon

attractions of the Fan Zone, and instead take a trip up Poland’s

COURTESY OF KEVIN DEMARIA

Center: Inch through the crowds to make it to Rondo de

Take a trip up Poland’s tallest building tallest building. Built as a present from the Soviet Union (choose between a metro or a tower, they asked), it’s totally Gotham City in its brooding excess. Featuring 3,288 rooms, the highlight of this 231 meter monolith is the viewing platform perched on the top: Stretch out to touch neighboring skyscrapers like Daniel Liebeskind’s weird work in progress, Z∏ota 44, or the InterContinental Hotel: host to Europe’s highest pool.

Jewish Warsaw: Home to Europe’s largest ghetto during World War II, the Nazis did a thorough job of erasing their dirty work: Methodically flattened, the post-war Muranów housing estate was plonked on the ruins of the ghetto and today only fragments survive – a section of original wall on Sienna 55 (enter from Z∏ota 62), for instance. More recently, a dramatic installation has been added to ul. Ch∏odna: illuminated at night, a trail of overhead lights mark the spot where a bridge notoriously connected the large ghetto with the small. The focal point of pre-war Jewish life, however, was to be found on pl. Grzybowski, a triangular plot close to the Palace of Culture. A small maze of streets leads to Warsaw’s only surviving synagogue (ul. Twarda 6), and nearby don’t miss a look at ul. Pró˝na – now rife with cranes and industrial machinery, this was the only ghetto street to escape

Gaulle’a. The roundabout takes its name from Charles de Gaulle (who got stuck in against the communists during the 1920 Battle of Warsaw), and is easily recognized on account of its palm – fifteen meters tall, the artificial tree celebrates its tenth birthday later this year. Titled “Greetings from Jerusalem,” the palm is intended as a reminder of Warsaw’s lost Jewish population, and provides a stark contrast to the bleak concrete construction that looms in its shadow. That’s the former Communist Party HQ, a blockish building reputed to have underground tunnels running to secret train stations. In an ironic twist the structure, which incorporates masonry from Hindenburg’s former mausoleum, briefly served as the home of the stock exchange after the Iron Curtain fell.

The Royal Route: Make your way to Stare Miasto (Old Town) by heading past the store fronts and cafe terraces of Nowy Âwiat and up the regal looking Krakowskie PrzedmieÊcie. It’s the same road Polish monarchs once followed on their way to and from town, and there’s still much to pause for. Composer Fryderyk Chopin was raised around these parts, and while he’s famous for his associations with France, home is where the heart is – literally. Following his death his heart was pickled in brandy then sealed in an urn inside Holy Cross Church (Krakowskie PrzedmieÊcie 3). Tucked past the elegant Bristol Hotel find the Presidential Palace: the official residence of the big man in charge. In 1955 it entered history when the Warsaw Pact – the red reply to NATO – was ratified inside. With Old Town already in view, spare a breathless few minutes to climb the viewing platform at St. Anne’s Church (Krakowskie PrzedmieÊcie 68), before heading back down … deep down. The escalator on the other side of the street was the first in Poland. Opened in 1949, socialist reliefs have been preserved to this day, as have period signs warning repeat offenders against using the escalators over and over (hey, there really was that little to do under the old system).

Old Town: If you’ve had enough of going up and down the escalator (naughty, naughty), then you could explore Mariensztat at the bottom – a powder-pink housing estate that was a model communist project. Alternately, head into the Old Town. The entrance to it is announced by the statue of King Zygmunt, the regent who chose to shift the capital from Kraków to Warsaw.

The original column, taken out by a German artillery round, lies

next to the Royal Castle.

Leveled by the Nazis in 1944, the Old Town was skillfully rebuilt using pre-war photographs and paintings as reference.

Nowadays, you’d never guess that bits of it are probably younger than yourself. Frankly, there’s too many highlights to mention, so without sounding like a tourist comic the best idea is to let your whims lead you down the cobbles and the courtyards. There are some unmissables though, those being St. John’s Cathedral with its echoing crypt, and the square itself with its Historical Museum – inside, view the story of Warsaw’s wartime destruction, before maybe heading down ul. Piwna to the Barbakan: an Italian-designed brick fortress that marks the end of the Old Town.

Warsaw’s most poignant memorial, that to boy soldiers killed in the Uprising, is found on Podwale as you curve around Old Town.

Evening Warsaw’s Old Town is a tourist-exclusive district. Come night, the locals head to the center – if you’ve packed some knockout aftershave join other predators and night owls as they prowl around the clubs of Mazowiecka and others in its radius. After the club, convene to one of the all-night shot bars that have become increasingly vogue – Meta, Pijalnia, Bar Warszawa and Przekàski Zakàski are all great spots to raise a vodka and toast your surroundings.

DAY 2: Morning Set the alarm early – museum time! The Warsaw Uprising Museum is a standout, and does a sterling job of educating visitors about the tragedy of the Uprising – the ill-fated 1944 rebellion which resulted in “the death of the city.” Costing a quarter of a million lives, the battle for Warsaw left 84 percent of the capital in a heap of rubble. Using 3D CGI effects, a high impact film takes viewers on a five-minute aerial tour of the devastated city.

If you’re keeping a “to-do” list, this should go somewhere at the top. Joining its ranks in Warsaw’s Mega Museum League is the Chopin museum, a place worth visiting even if you have no interest in the chap – reckoned to be one of the most hi-tech museums in the world, it completely redefines the sightseeing experience. Finally, the Copernicus Science Centre completes the Big Three, with hundreds of hands-on science displays that appeal not just to kids – let’s face it, who doesn’t want to return home and boast they’ve experienced an earthquake or flown on a magic carpet. Yes, that’s exactly what awaits at the Copernicus.

BEST OF WARSAW

The right bank of the Vistula is well known for its interesting nightlife

Late Afternoon Saska K´pa: With kickoff approaching, head across Most Poniatowski to amble around Saska K´pa, an upmarket district heavily sprinkled with Art Deco villas and Modernist mansions. It’s not rare to find locals declaring the area a “village within a city,” and yes, it does have that temperament. While low on specific tourist sights, it’s a quiet retreat from the madhouse downtown, and that’s especially true of Park Skaryszewski. Hiding amid the trails and ponds find a string of memorials, including a commemorative bolder honoring a British plane shot down while dropping supplies during the Uprising. Only one pilot survived, and he was present when Margaret Thatcher unveiled the memorial in 1988.

Evening Praga: Of course, there’s an ulterior motive to luring you here.

The National Stadium is bang next to Saska K´pa. While most fans will plod straight back to the center after the final whistle, don’t think you have to. The right side of the river has become synonymous with nightlife, and the bars are its business card. In

Saska K´pa, Klubokawiarnia Towarzyska has become a hit with the leftfield community, but for Warsaw at its rawest head to the bars of Praga. While this district has historically enjoyed dark local press, in recent years it’s become the home to a thriving counter-culture, with hip bars flourishing amid artsy workshops and creative projects. In this respect, ul. Zàbkowska stands out for its edgy wall art and scattering of bars. W Oparach Absurdu (Zàbkowska 6) appeals on account of a shambolic design and Bohemian bent, though to really capture the spirit(s) of this area visit Czysta Ojczysta (Zàbkowska 27/31). Entered through creepy neo-Gothic gates, this former vodka factory is currently under development. In the meantime, several of the outbuildings have been utilized for weird and wonderful uses, not least Czysta Ojczysta – a cavernous vodka bar with a “Bladerunner” backdrop.

DAY 3

www.wbj.pl

3

COURTESY OF KEVIN DEMARIA

COURTESY OF KEVIN DEMARIA

JUNE 11-17, 2012

Morning

The Chopin statue in ¸azienki Park

Ouch. There’s an off chance you may wake-up in a bush looking like a shot badger. Should that be the case, consider a replenishing visit to the park: Warsaw’s a green city, and her parks are her pride. To the south ¸azienki is breathtaking, and closely protected by a battalion of peacocks. If you’re here on Sunday, check out the live Chopin recitals which entertain once a week within sight of his statue. And while there, wave at the Polish team – they’re staying across the road in the Hyatt Hotel. Saski Park pleases in equal measure: opened in 1722, it was one of the first public parks in the world, and her highlights encompass 21 Baroque sandstone sculptures, as well as the Tomb of the Unknown Soldier – the one surviving element of what was once Saski Palace.

More hidden, Warsaw University Library (Dobra 56/66) has a splendid park positioned on the roof, though for the Insider’s favorite little secret, check Osiedle Domków Fiƒskich (ul.

Jazdów). Consisting of 28 wooden chalets, it’s an amazing housing project in the center of the city: constructed in 1945 to house architects involved in the rebuilding program, the pre-built cabins were imported from Finland. Set against a serene wooded background, the sensation is akin to being teleported to a tiny Swiss village.

Afternoon Retail therapy time, with serious shoppers advised to gravitate around Mokotowska / pl. Trzech Krzy˝y. Designer names shout from each awning, with major international fashion houses sharing the streets with upcoming local names like Maciej Zieƒ. Boutique unique indeed. But no trip to this area can be complete without first exercising the credit card at Vitkac – Poland’s only luxury department store. Celebrate your splurge in the on-site champagne bar. For something totally different, then pencil in a visit to the Ko∏o Market on ul. Oboêna. Held each Sunday, this flea market is legendary for its offer: antiques from various eras vie for space alongside war loot and communist keepsakes.

Evening That’s it: Warsaw in a nutshell. Enjoyed it? Then say goodbye in style. Squeezed between the Old Town and the river, a jazzy looking fountain park amuses each night with choreographed water displays that draw hundreds of onlookers.

Then again, maybe drinks at the pub sounds like a far better plan …

4

BEST OF WARSAW

www.wbj.pl

JUNE 11-17, 2012

Food & drink

Food & drink

Taste your favorite coffee in Costa Coffee

Bagno Food & Wine

alk into a Costa and you’ll notice it’s a little different to other coffee shops.

Firstly, there’s the warm and welcoming atmosphere. Then there’s the carefully chosen food and authentic coffee drinks. This is the perfect place for meeting with friends and is designed to answer different needs and expectations of customers. The key to the global success of Costa Coffee is the unique taste of the coffee, appreciated for over 40 years.

In 1971, a cup of Costa Coffee brewed with the unique Mocha Italia blend was poured for the very first time for customers in the UK. Our baristas use the Mocha Italia

W

blend to create a perfect cup of coffee, which perfectly balances sweetness and delicate bitterness. The Mocha Italia recipe is a guarded secret but the taste is now enjoyed in all Costa Coffee stores in 25 countries all over the world,

including Poland. Perfection is a standard at Costa Coffee . ● You can find us in Warsaw at shopping mall Wola Park and Warsaw Eastern Railway Station (Dworzec Wschodni).

ucts, fresh seafood and homemade pasta and bread. Luca, the head chef, is a professor of his art, and his masterpieces number fresh tuna tartar, Fiorentina steak and spaghetti served with half a lobster. On the ground floor, proceedings are more informal, and the café bar is a popular meeting point where Italian expats converge to watch soccer. Passions rise the moment the soccer is screened, with the atmos-

ndia Curry isn’t just another Indian, it’s a standalone star that merits celebration. Of course, you probably know that already. Opened in 2002, it’s one of Warsaw’s oldest ethnic performers, and a familiar name among expats.

Entered via a courtyard, there’s something welcome and familiar about stepping inside – decorated with rattan furnishings and clean stone finishes, there’s an elegant look that’s colonial in style.

But interiors be damned, it was the food we were here for, more specifically an in-depth investigation of their re-

I

phere pleasantly stoked by the availability of over 100 kinds of Chianti as well as wines from all across Italy. ● Al. Jana Paw∏a II 36, tel. (22) 652 16 16

launched menu.

The fish tikka proved an excellent starter, delicately spiced and crispy at the edges. But it’s the mains that really get you jiving. The mutton biryani is an outright triumph, and perfectly paired with some chilled rajita – a cool cucumber/yogurt mix. For something a little more nuclear, then order the Madras – spice is something

Food & drink

Food & drink

Tawerna Patris

Na Zielnej

raditional cuisine from the Greek Islands.

Dishes are based on original recipes which have been passed down by generations and enjoyed by Venetians and Turks.

Tawerna Patris offers three air-conditioned rooms, each with different interiors, a big parking lot and affordable prices. ●

alk into Na Zielnej and it’s easy to see why the concierges of Warsaw voted this is as their ‘address to impress’ in the Insider’s 2011 Best of Warsaw awards. Found in Warsaw’s first high-rise skyscraper, what was a former telephone exchange has been transformed into a five-star affair.

To the right of the lobby lies the bistro, a classic ice white space interspersed with some industrial elements. On the other side lies the more formal restaurant, a two-room haunt decorated with brushed bricks, stripped wood flooring and

T

TAWERNA PATRIS ul. Wa∏ Miedzeszyƒski 407 (near the National Stadium) tel:22-357 11 11 www.tawernapatris.pl biuro@tawernapatris.pl

very welcome newbie in an area that’s finally stirring into life. For sure, put this on any ‘watch’ list you might be keeping. ● ul. Bagno 2, tel. (22) 620 22 77

India Curry

San Lorenzo or two decades San Lorenzo has been earning accolades and praise as Warsaw’s number one destination for Italian dining. Split in two parts, the top floor offers elegant dining inside extravagant belle époque interiors; especially popular among romancing couples and corporate diners, guests can expect authenticity to the tee. That’s largely down to attention to detail: an Italian chef, original Italian prod-

above, this chic number features a concise, seasonal menu: of the starters, the baked beetroot with goat’s cheese proved an unqualified success. Onto mains, and with them further evidence that Warsaw has finally shed its reputation for poor quality steak – our sirloin was a hit, cooked to order and complimented by a velvety mushroom sauce.

Would we order it again? You bet your life we would. All in all, a

Food & drink Brought to you by Costa Coffee

Food & drink

F

agno, if you didn’t know, is Polish for swamp, an inappropriate name for a venue of such standing – when you think of swamps, you may think of green, scary monsters emerging from sludge. So how about this place then, a hyper cool venue with a minimalistic design that follows the credos that less is more. Bagno works better in summer: With its stark design and great, big windows, all it takes is a grey Warsaw day to plunge it into gloom. But both the food and the wine hit the spot.

Clearly aimed at the office bods and condo residents

B

W

violet dashes. Cooking becomes art here, with dishes incorporating premium produce carefully sourced from regional Poland: fish from the lake district, pork from Z∏otnicka White pigs, and beef from Pol-

viewed with skepticism and suspicion in Poland; here it’s clearly not. ● ul. ˚urawia 22, www.indiacurry.pl

ish Red Cattle.

Certainly a standout venue, and a leader among the slow food restaurants which have emerged in recent months. ● ul. Zielna 37, www.nazielnej.pl

BEST OF WARSAW

JUNE 11-17, 2012

www.wbj.pl

5

City tours

Behind the Scenes! here’s more to Warsaw this summer than the football, the stadium and that cup everyone is talking about. Discover the hidden side of town on this tour with a twist. Journey to Warsaw’s hidden nooks and crannies in an immaculately preserved communist era fire van, or a Fiat 125p: yep, exactly the sort of car you’d have found Poland’s retro football stars pootling around in. Whether it’s hidden pre-war remains, or obscure traces of Communism, Warsaw Behind the Scenes lifts the lid on the city’s deepest secrets!

Promising a total departure from your stereotypical tour,

T

your adventure penetrates the mask of this emerging capital – and, along the way, expect to be enjoying some true hospitality: Polish style! Prepare for vodka shots and bites in locations that history has forgotten! Choose

from two tours: one starting at 11:00, and another that peers into Warsaw after dark starting at 19:30! ● For more information www.warsawscenes.com, Marcin 605 278 289

Brought to you by Warsaw Behind the Scenes

Food & drink

Enoteka ith a few exceptions, the Old Town does not quite seem to be great restaurant territory. Enoteka Polska, located on the edge of the Old Town, is a unique place as a perfect combo of traditional Italian restaurant, wine bar and specialised wine shop.

With a brilliant selection of hand-picked wines from 44 (only European) top wineries and a menu of gorgeous Italian cuisine with authentic ingredients, it is the ideal spot to escape the city and enjoy a casual, rustic vibe with a note of distinguished elegance. In addition Enoteka's wine import pol-

W

icy allows for guests to enjoy outstanding value for money.

Enoteka started in 2009 and has collected some prestigious prizes like “Best Newcomer 2009,” “Best Wine Bar 2010” (both awarded by Warsaw Insider magazine), “Best Restaurant 2009” (nominated by Gazeta Wyborcza) and the best score

among the Polish wine importers on the Grand Prix 2011 of Magazyn Wino.

Quiet, charming and satysfying, Enoteka brings something enticing and unique to Warsaw’s somewhat jaded dining scene. ● ul. D∏uga 23/25, tel. (22) 831 34 43

Food & drink

Food & drink

Grill & Co.

Sabat Theater

arsaw is clearly on a roll; there were times when it was easier to find a cooked owl than a good steak, so it’s with great pleasure to see the arrival of yet another top (m)eatery. Set in that anonymous grey zone that straddles Mokotów and Ochota, this haunt comes deep inside a swank new labyrinth of residential/office new build. You might not expect much, to be honest, with any secret snobs liable to scoff at the online picture menu. But prejudice is illfounded – featuring a hip, polished look this place could easily have fitted in with the

W

design bars on Mazowiecka.

The filet mignon is cooked to perfection, and set off fireworks in the mouth. Dessert, meanwhile, includes a decadent chocolate pudding, and is an equally high-standard affair. And with meaty mains

falling into the z∏.30 to z∏.50 bracket, I’ve got no issues with pricing, either. Most certainly, here’s a new arrival of note. ● ul. ˚aryna 2B (Millennium Park, Building C), www.grill-co.com.

Bistro S∏ony Magda Gessler invites you for the best breakfast in Warsaw in the morning and for snacks served with wine and “shots” of lager in the evening and night We recommend: • „Sznytki” – little canapés with spreads (also as takeaway and catering offer) • The best white sausage in Warsaw • Herring in different styles • Viennese specialties: leberkäse, debreciner and frankfurter sausages • Breakfast sets and breakfast a la carte. On the weekends served till 4 pm.

• Wide selection of gluten free dishes

a∏gorzata Potocka’s Sabat Theater is the only place in Poland where one can watch a Revue Show or a Las Vegasstyle show that combines stunning performances alongside an evening of dancing and excellent food. After the performance find the stage transformed into a dance for our guests, while our singers perform some of the greatest hits from contemporary times. Found in the center of Warsaw, we offer a chic, elegant atmosphere inside extravagant Art Nouveau interiors that are unique to the city. ● ul. Foksal 16, tel. (22) 826 84 21

M

Brought to you by Sabat Theater

S∏ony 11 Pi´kna St. (crossroads of Pi´kna and Krucza st.) phone: +48 22 629 03 64, 0048 506 052 093, www.slony.pl; slony@slony.pl

6

BEST OF WARSAW

www.wbj.pl

JUNE 11-17, 2012

David Ingham, Alex Webber

Euro 2012

Up for the cup The waiting is over, and the time for heroes and villains is upon us. From June 8 all eyes in Poland will be focused on Euro 2012. Without further ado, Warsaw Insider presents its dedicated rundown of who to watch and where to watch them

Group A The Czech Republic Overview:

A series of underwhelming performances saw the Czechs come within a whisker of being bumped into touch during the qualifying stages, and only a play-off triumph over Montenegro saved their campaign. But goalkeeper Petr Cech, while no longer the invincible force he once was, will add confidence to a solid defense, while the creativity of Tomas Rosicky always promises to pose problems. With a healthy number of traveling supporters expected to make the short journey to Poland, making it out of the group is a realistic target.

Where to Watch: U Szwejka (Pl. Konstytucji 1) / Czeska Baszta (Tower 22A, Most Poniatowskiego). Prague street signs and pictures of the simpleton, Good Soldier Szwejk, adorn the walls at U Szwejka, a restaurant serving traditional Czech food.

Alternatively, head to Czeska Baszta to try their 80+ brands of import lager.

The Polish Connection: In 1968 accountant Ryszard Siwiec set himself ablaze at Warsaw’s 10 th Anniversary Stadium (the site of today’s National Stadium) to protest against the Soviet Union’s invasion of the Czech Republic.

Greece Overview: The Greeks have come a long way since their surprise triumph in Portugal, 2004.

Unfortunately for them, it’s been the wrong way. Faring dismally in their last international tournaments, they’re a side lacking charisma, flair and penetration – much like their 2004 squad, in fact. The omens don’t bode well for this side, but Fernando Santos’ team will be encouraged by a table-topping qualifying campaign that included a home victory against the Croats. Defense still remains their strength, and unlocking it could well present a stern test for the other sides in Group A. But any hopes Greece harbor of adding to their trophy haul are reflected by the long odds being offered by the bookies.

Where to Watch: There’s a raft

of Greek restaurants in Warsaw, but few match Tawerna Patris in terms of atmosphere.

The Polish Connection: Over 12,000 Greeks fled to Poland during and after the Greek Civil War in the 1940s, with the Polish government settling the majority in the town of Zgorzelec.

to fruition then head to folksy Babooshka for a stiff shot of vodka.

The Polish Connection: Most Poniatowskiego, the bridge fans will cross to reach the National Stadium, was originally named after Tsar Nicholas II. In less than 100 years this piece of Russian imperialism has burnt down once, collapsed another time, and been blown up twice.

Group B Denmark

Poland Overview: Most Polish fans would be happy to see Poland qualify from their group and avoid humiliation in the next round. With no recent competitive games to judge them on, their record in friendlies has included a defeat against Lithuania and victory over Argentina – go figure. Head coach Franciszek Smuda needs to instill a level of consistency, and hope his team of journeymen gel once the whistle sounds. Gifted the easiest group of the lot, anything less than a quarter-final berth will be viewed as a disgrace.

Where to Watch: Tricky one.

Expect everywhere and anywhere to be mobbed with face-painted Poles tooting into plastic trumpets: the fan zone, the pub, your neighbor’s shed. For the seminal patriotic Polish experience, hit ¸azienkowska 3 – the Legia Warszawa pub.

Did You Know? Better known for dark, chilly winters, Poland is also home to one of Europe’s last surviving deserts: Pustynia B∏´dowska. German military commander Erwin Rommel was so impressed by “the Polish Sahara” he chose to train his desert troops there.

Russia Overview: Russia were the surprise package of Euro 2008, advancing to the semis having played some thrilling soccer. Since then the talismanic Andrey Arshavin has suffered a catastrophic loss of form, yet even so Russia should have enough in the tank to make it through a weak group. From there they’ll need to be rolling double six – with Italy or Spain as likely opponents in the second stage, they’ll need the Gods on their side.

Where to Watch: The Russians are rumored to be setting up their own fan zone in Pole Mokotowskie, but if that doesn’t come

Overview: Denmark start the tournament as rank outsiders, with some bookmakers slapping odds of 100-1 on them. Drawn in a particularly scary group of death, not even the optimists are touching this lot, and the subsequent lack of pressure could act in their favor.

Where to Watch: Poor Denmark.

In a city full of niche bars and restaurants, only the Danes lack a place to call home.

The Polish Connection: You know that little mermaid that sits in Copenhagen harbor? Well, according to some legends, she’s the blood sister of Warsaw’s own syrenka.

Germany Overview: Germany have undergone a remarkable transformation in recent years: from the team everyone loves to hate, to the team everyone loves … to love. Gone is the methodical, mechanical approach of old, replaced instead by a slick passing game that has seen them installed as second favorites.

Coach Joachim Löw has a wealth of talent to choose from – as well as a lethal front line – meaning the Germans are sure to enjoy a productive campaign.

Where to Watch: Adler (Mokotowska 69) is better known as a bit of a golden oldies Bavarian themed eatery – their takings will soar this summer.

The Netherlands Overview:

The neutral’s favorite.

The Netherlands bring with them a rich reputation for gung-ho soccer, dressing-room feuds and eccentric support. While coach Bert van Marwijk has introduced a more businesslike approach to Dutch soccer, they still look irresistible going forward: With a side boasting Sneijder, Robben, Hunterlaar and Van Persie, we’re looking for plenty of thrills and spills to come from this lot, not to say a bloodand-thunder performance against arch-rivals Germany.

Where to Watch: The diminutive Wiatraki (Warecka 8) regularly holds mixers for Dutch expats and will hit fever pitch this summer.

words of Basil Fawlty: “Don’t mention the war.” So we won’t.

Instead, as Poland struggle to breach defenses this summer, their fans will wonder what could have been if Polish-born strikers Miroslav Klose and Lukas Podolski had opted to represent their country of birth ahead of that country next door.

Where to Watch: Tapa y Toro (ul.

Z∏ota 59). With a location next to the fan zone, and a great outdoor area, it’ll be nothing less than packed.

The Polish Connection: 13 Polish footballers have played in Spain’s top division, La Liga, the last of which was goalkeeper Jerzy Dudek who warmed the bench at Real Madrid for four seasons.

The Polish Connection: Art dealer Hendrick Uylenburgh, who many credit for developing Rembrandt’s career, was raised in Kraków.

Italy

Where to Watch: Warsaw’s Portuguese expats will be gathering at Portucale (Merliniego 2).

Wannabe Ronaldos can practice their diving in the Aqua Park close by.

Overview: Since winning the tournament back in 1968 the Azzuri have only reached one final, Euro 2000, when they lost out to a golden goal by France’s David Trezeguet. This time around the Italians are something of an unknown quantity, with a distinct lack of superstars in their tournament squad. In qualifying they scored 20 goals and conceded just two in 10 games to sail through to the final stages. But, in a group that contained teams such as Estonia, Slovenia and Northern Ireland it was only to be expected.

However, with the right blend of youth and experience, plus the unpredictable talent of madcap striker Mario Balotelli in the camp to ease the boredom on off days, Italy could potentially go far this time around. Unlikely to win the whole thing, they have every chance of reaching the semis.

The Polish Connection: Accord-

Where to Watch: Ristorante San

ing to one recent study, Portuguese resident/explorer Christopher Columbus wasn’t of Italian extraction, but actually the son of W∏adys∏aw III, the exiled King of Poland.

Lorenzo (Al. Jana Paw∏a II 36).

Upstairs it’s a swank eatery. The café downstairs though is popular with noisy Italians cheering the soccer.

Portugal Overview: Which Portugal will turn up the one that stuttered to a 4-4 home draw against Cy-prus, or the one that destroyed Bosnia 6-2? Portugal are capable of scintillating soccer, but will require big performances from their big players – of which they have many. Still smarting from surrendering the final in 2004, this flair side has developed fast under coach Paulo Bento, but will need to learn to box clever against the others in their group.

Group C Spain

The Polish Connection: In the

ent pool including the likes of Fabregas, Alonso, Xavi, Busquets, Silva, Iniesta and Mata. And with Chelsea’s Fernando Torres finally back among the goals and regaining confidence it would be foolish to bet against the Spaniards going far once again this year. But as no team has ever managed to retain the Henri Delaunay Trophy, it appears that history is against them.

Overview: On paper the current European Championship and World Cup holders have the strongest squad in the whole tournament with a team packed full of outstanding players. In fact manager Vicente del Bosque’s biggest worry may be actually trying to pick a starting midfield from a tal-

The Polish Connection: Italian Princess Bona Sforza became Queen of Poland in 1518 after she married King Zygmunt I. She did a runner after poisoning her son’s girlfriend, and her ghost now purportedly haunts Czersk Castle.

Republic of Ireland Overview:

Ireland have one huge advantage over the other teams in Group C: their fans.

Onlookers can ex-pect the Irish support to take over Poznaƒ and

BEST OF WARSAW

JUNE 11-17, 2012

Gdaƒsk this June as the Boys in Green play in their first European Championships since 1988. Sensible analysis suggests that the group’s three other teams may have too much for this Irish side but with a backbone of experienced players, plus manager Giovanni Trapattoni at the helm, you can never say never. If they can get a positive result against Croatia in their opener then expect Irish optimism to go through the roof.

strings in midfield, creating goals shouldn’t be a problem. If they are to progress through the group it looks likely they’ll need to beat Ireland and get at least a draw against either Spain or Italy.

Where to Watch: Guccio Damagoj (ul. Suzina 8). Located in a former cinema and run by a Croat who has resided in Poland for the past six years, this little restaurant offers top-quality Croatian wine and food.

Where to Watch: Bradley’s (ul.

Sienna 39) remains the No. 1 Irish pub in town. It’ll be mad.

The Polish Connection: Polish is the most commonly spoken foreign language in Ireland according to the country’s 2011 census.

The Polish Connection: Croatia ended Poland’s hopes of qualifying through the group stages of Euro 2008 with a one-nil win in Klagenfurt four years ago.

Group D

Croatia Overview: Famed for their skillful play and fanatical fans, Croatia always add a bit of excitement to any major international tournament.

Currently led by a chain smoking, guitar playing, law graduate – former Premier League defender Slaven Bilic – the Croats have a decent record in the European Championships since first being accepted into UEFA back in 1993.

This time around they will do well to match their two quarterfinal appearances, which occurred in 1996 and 2008, but with Tottenham midfielders Niko Kranjcar and Luka Modric pulling the

England Overview: Sensible analysis of England’s chances would suggest a country which has failed to even get to the final of a major tournament since 1966 has absolutely no chance of winning Euro 2012.

Without Wayne Rooney for the first two matches, a new manager who’s had just a month to prepare the team and a bunch of pampered players who don’t give a hoot, more woe could be on the way for the country’s long-suffering faithful. But then again English people never have been sensible when it comes to analysis of their own

team’s chances. Buoyed by Chelsea’s success in the Champions League, and a thrilling finish to the domestic league, national confidence is sky high – if England win their first game expect the red and white mist to descend and even the most hesitant fans to predict England in the final.

www.wbj.pl

Blokhin, may also be pivotal.

Where to Watch: Kresowiak (Al. Wilanowska 43C). Although not strictly a one-country restaurant, with food based around traditional dishes from Ukraine, Lithuania and Belarus, Kresowiak certainly provides a real taste of the near east.

Where to Watch: Legends (ul.

Emilia Plater 25) and The British Bulldog Pub (ul. Krucza 42) will go head-to-head to draw the exiles through the door. If rumors are to be believed, you’ll find the Bulldog open 24/7 for the bigger matches.

The Polish Connection: The Ukrainian city of Lviv was once the Polish city of Lwów, before becoming part of the Soviet Union in August 1946.

France

The Polish Connection: The

Overview: Cham-

Great Escape: the daring break away of British troops from Nazi POW camp Stalag Luft III – immortalized in the Steve McQueen film of the same name – took place in ˚agaƒ, 150 clicks from Poznaƒ.

pions in 1984 and 2000, Les Bleus were the laughing stock at the World Cup in South Africa two years ago when a players’ mutiny derailed any hope their aging team had of getting through the group stages. Since then Lauren Blanc has brought some pride back to the nation and, despite various sex and racial scandals affecting French soccer, has managed to steer his side successfully through qualifying. With a midfield packed full of creative talent from the likes of Nasri, Ribéry and Cabaye this team could potentially score goals by the bagful. With a feel-good factor coursing through the team, they look a hot bet to progress as far as the semis.

Ukraine Overview: Ukraine won’t be fancied by many at this year’s Euros given that their recent results have been mixed at best. But as is often the case in tournaments, when the home nation play the form book is thrown out of the window.

Remember South Korea in 2002?

Ukraine’s fans will definitely be key to the co-host’s potential progress. The influence of the 1975 European Footballer of the Year and current head coach, Oleg

Where to Watch: L’Arc (ul.

Pu∏awska 16), has excellent French

7

food, fresh lobster and a great wine menu. Whether they have a screen remains unknown.

The Polish Connection: Former French Emperor Napoleon Bonaparte is still revered by some Poles after he created the Duchy of Warsaw in 1807, following defeat of Prussia – that’s why a statue of him was recently unveiled in Pl. Powstaƒców Warszawy.

Sweden Overview: The Swedes could be the dark horse of Group C despite most observers ignoring them in favor of France and England. But an impressive qualifying campaign which saw them defeat the Netherlands 3-2 in their final game to go through automatically, demonstrates that they shouldn’t be taken lightly. Usually fairly sturdy at the back, the key to success for the Scandinavians will be the goals of AC Milan’s Zlatan Ibrahimovic and the wing play of Lyon’s Kim Kallstrom.

Where to Watch: IKEA (ul. Malborska 51). The cheapest hot dogs in Warsaw at just z∏.1. Surely there’ll be a screen!?

The

Polish

Connection:

Between 1563 and 1721 Sweden and the Lithuanian-Polish Commonwealth were involved in series of wars known as the PolishSwedish Wars ●

8

BEST OF WARSAW

www.wbj.pl

JUNE 11-17, 2012

Polish retro soccer

Poland’s soccer past classic World Cup, 1974 heralded the tournament’s first red card, a newlook trophy and the concept of “total football.” It also signaled the arrival of the Polish national team. Poland entered the competition as an unknown quantity, and while they had edged out England in the qualifiers, that result was largely seen as a fluke. It wasn’t.

Their first match saw a thrilling 3-2 triumph over Argentina, and their class was emphasized the following game courtesy of a 7-0 mauling of a shell-shocked Haiti.

Italy were dispatched 2-1, and Sweden and Yugoslavia were next to the sword. Poland then found themselves facing the hosts, West Germany, with a place in the final at stake.

Torrential rain had left the pitch waterlogged, and in spite of Polish protests, the Austrian referee insisted the match go ahead. Poland’s fast moving, cavalier game was useless in such conditions, and the Poles crashed out to a 76th minute Gerd Müller goal. Poland signed off on a high, however, with Grzegorz Lato’s seventh goal of the tournament win-

Madrid, Deyna eventually secured his dream move abroad in ’78 when he signed for Man City. While his spell at Maine Road was marred by injury, the former Legia hero earned cult status thanks to a catalog of match-winning outings. A move to San Diego beckoned in the 80s, and it was in America that the maverick playmaker was tragically killed in a car crash.

COURTESY OF AGENCJA FORUM

A

Poland vs West Germany at World Cup ‘74 ning him the Golden Boot, and sealing a third place, 1-0 win over Brazil. The golden era of Polish football had begun.

Polish footballing greats Jan Tomaszewski A.k.a. ‘The Man Who Stopped England.’ Keeper Jan Tomaszewski is commonly remembered for an epic performance in ’73, when he pulled off a string of superhuman saves to book Poland a place in the ’74

World Cup at the expense of England. Labeled a “clown” by Brian Clough on the eve of the match, Tomaszewski’s name remains bitterly etched in the memory of every Englishman.

He continued to serve as Poland’s number one for many years, and has since carved a niche as a controversial commentator and politician for PiS. More recently, tabloid allegations suggest Tomaszewski may have worked as a communist

agent during his footballing heyday.

Kazimierz Deyna Nicknamed rogal (croissant) on account of his bendy shots, Deyna stands out, arguably, as Poland’s greatest ever talent.

Top scorer in the ’72 Olympics, his contribution in the ’74 World Cup campaign saw him voted third in the European Footballer of the Year awards.

Heavily courted by Real

Zbigniew Boniek The only Polish player picked

by Pele in his list of “125 Greatest Living Footballers.”

Considered one of the best dribblers of the era, Boniek was transferred to Juventus from Widzew ¸ódê in 1982, whereupon he became a firm hit with the fans of Italy’s biggest club. Dubbed bello di note (beauty of the night), on account of his knack for excelling during evening games, Boniek inspired Poland to third in the ’82 World Cup, and helped lead Juve to the Cup Winners’ Cup and European Cup. As a coach Boniek has fared less successfully, and his managerial career includes stints at minor Italian sides, and a disastrous spell with

Poland – his reign reaching a nadir with a 1-0 reversal at home to Latvia.

Architecture The Stadium Stadion Naradowy (the National Stadium) takes center stage this summer, but before you take your seat at this 21st-century arena, spare a thought for what came before.

Built atop of vast volumes of battle rubble, Stadion Dziesi´ciolecia (the 10th Anniversary Stadium) opened in 1955 to coincide with the first decade of communist rule in Poland.

The oval shaped open arena was established as the national stadium, with the last international match played in 1983 – a draw against Finland. The same year Pope John Paul II held mass here for 100,000 people. Following the fall of communism the overgrown stadium developed into one of Europe’s great outdoor bazaars, with all sorts of dubious goods traded for hard cash.

Today, nothing remains of the original structure aside from a statue of three relay racers poised for glory.

Alex Webber

IN DEPTH

JUNE 11-17, 2012

SHUTTERSTOCK

emphasizes that the church has a responsibility to use the most efficient instruments of presenting its message against “counter attractions.” “Many ... people spend Sunday in playing golf, riding in autos, loafing in parks, playing cards, and dancing. If advertising has sold these people some other values, why should it not sell the church to them?” asks the author.

Over 50 years later this issue was raised again by Pope Paul VI himself in his Message for World Communications Day (1977). It is desirable for Catholic institutions, argued the Pope, to “follow ... the development of the modern techniques of advertising and know how to make opportune use of them in order to spread the Gospel.”

The Polish church’s brand value has plummeted in recent years ➡ Continued from p. 12

Thou shalt (not) shill Some theologians, however, teach that it’s inappropriate to propagate the sacred using the means of the profane; that the language of theology referring to eternal matters cannot be translated into the language of advertising, which is focused on temporalities. “The word of God is not for sale; and therefore it has no need for shrewd salesmen,” said Karl Barth, an acclaimed Swiss pastor in one of his sermons, recently published as a book.

This critical approach is also shared by individual marketers who emphasize, while marketing to a select group of people, that religion must be chosen freely and without altering any of its elements.

“You cannot change the absolute, I wouldn’t speak of

altering the offer that’s been the same for thousands of years,” said Maciej Tes∏awski.

“What you can change though is the way of communicating it.

choice but to advertise itself, since it is a missionary religion whose aim is to reach potential worshipers and persuade them to follow Jesus. “Advertising

“The word of God is not for sale; and therefore it has no need for shrewd salesmen” Different brand attributes may be highlighted based on how different the needs of a target group have become with time,” he added.

Rev. Artur Stopka recommends prudence. “The basic risk is treating faith, salvation, Gospel or sacraments as palmed-off merchandise. This is unacceptable.”

Still, Fr. Remigiusz Rec∏aw claims Christianity has no

and Gospel are two sets overlapping each other,” he said.

The debate goes as far back as 1921 (at much the same time as Barth’s sermons were preached) when a “Handbook of Church Advertising” was published in the US. Written by Francis H. Case, an American journalist and politician, for “the busy pastor or committeeman who is facing immediate and practical problems,” it

Attract and retain The Polish church very rarely decides to hire professional, well-known advertising agencies. Most of its campaigns are prepared in-house. “The way the church thinks is: professionals have their little market twist and our offer is not quite market-like, we don’t want them to work for us, we’re not a kilogram of beef,” said Mr Tes∏awski. “An agency counts only on its shrewdness while we must remember that it’s ultimately the Holy Ghost that opens hearts, not us,” said Remigiusz Rec∏aw. “We’re creative enough to make ads on our own.”

In a pioneering effort, an agency – Ad Fabrika – made two prints back in 2005 to encourage the faithful to confess before Easter. One showed a stoup with a straw standing out from one side, with its slogan reading “There are better cures for a moral hangover”; the other, urging “Whiten yourself” had an Easter lamb painted black. As a test of promoting the “goods” of faith, these ads

www.wbj.pl

were, however, commissioned by the editorial office of Gazeta Wyborcza, not the church, and were not put to use by the latter.

“It gets you thinking and engages your emotions,” said Fr. Rec∏aw. “Anything that does is good. There are theological errors in it – it’s not up to me but God to ‘whiten myself’ but advertising is no theology and doesn’t have to be strict,” said the Jesuit.

Maciej Tes∏awski is critical about the “moral hangover.”

“It’s a hard sell. I’d show emotions differently, focus on how great a person feels right after they’d been given absolution.”

The Handbook of Church Advertising provides its own how-to in this matter – it advises not only on how to sell the church but also on what it has for sale: companionship, salvation from sin, comfort in distress. “In your copy emphasize results. What does religion do for a man? What does it do for a community? What does it do for society?”

“Should you advertise at all, do it professionally or it will backfire,” advised Rev. Artur Stopka. “A few years ago a retreat was to be promoted with a slogan taken from a supermarket chain. Luckily, the local bishop put a ban on it.”

Experts point out that it’s not enough to create a good ad and expect a common religious revival. “In the long run it’s only authorities that work. You don’t promote an abstract idea but a person who embodies this idea – like John Paul II, Adam Boniecki, Jerzy Popie∏uszko,” said Mr Tes∏awski. In his view, a good Catholic should be as devoted to their Church as a Harley-Davidson fan to their bike. “No other brand exists for them, they always defend it no matter its flaws and try to persuade anyone that it’s the best out there.” ●

13

Chopin Airport sees passenger surge Over 981,000 passengers flew from the Warsaw Chopin Airport in May, a 14% increase from the same month in 2011.

Airport spokesperson Przemys∏aw Przybylski said that a high number of domestic passengers is largely behind the overall increase in airport traffic.

“In the last month, close to 185,000 people flew domestically from Warsaw, i.e. 95% more than in May 2011,” he said.

Treasury announces proceeds from privatization The Treasury Ministry announced last week that it had booked revenues of z∏.3.14 billion from the sale of state assets so far this year. In total, the ministry expects to raise z∏.10 billion in 2012 from privatization. In 2011, the Treasury earned revenues of z∏.13 billion from asset sales, less than the z∏.15 billion it expected.

Main television stations losing viewers TVN, TVP and Polsat are dealing with an ongoing loss of viewers, especially in the 16-49 year old demographic.

Even the most popular shows, which the stations count on for the biggest share of their advertising revenues, are losing viewers. ●

SOCIETY IN FOCUS

www.wbj.pl

Polish banks’ profits rise Polish banks’ profits have continued to grow this year, albeit at a slower rate than in 2011, reported Puls Biznesu.

Net profits for the entire banking sector in the first four months of 2012 amounted to z∏.5.66 billion, according to figures from the National Bank of Poland. This was 14.2% more than in the corresponding period of last year.

Orlen finishes refinery overhaul A major overhaul of PKN Orlen’s Lithuanian refinery has just been completed, at a cost of around $65 million. The Orlen Lietuva refinery has resumed production of fuels at the full planned rate, the company wrote in a statement. According to estimates, it will increase the company’s EBITDA by approximately $20 million. A total of 54 different projects were carried out as part of maintenance and upgrade works.

Russian protests in Poland Opposition groups in Kaliningrad have announced plans to demonstrate in Poland during Euro 2012 if a law blocking freedom of assembly in Russian is passed by the country’s parliament. If enacted, the new law will raise the fines for participants in unauthorized protests up to €9,000, roughly equal to an average yearly salary in the Russian Federation. Protesters hope that fellow compatriots will be able to see their opposition and for the protests to be broadcast in international media.

Party wants Kaczyƒski vacation Members of opposition party Palikot’s Movement (RP) have announced that they want to give Law and Justice (PiS) leader Jaros∏aw Kaczyƒski vouchers worth z∏.17,000 to enable him to go on vacation during Euro 2012.

This is to avoid the chance of him spoiling the atmosphere for Poles during the tournament, reported Rzeczpospolita. ●

JUNE 11-17, 2012

Polish society

Euro 2012 and the Polish psyche WBJ sits down with Janusz Czapiƒski, one of Poland’s best-known sociologists and academics, to talk about Euro 2012 and the psychological impact it is having on the Polish nation Poles already have two reasons to be proud about their cohosting of the world’s thirdlargest sporting event, according to sociologist Janusz Czapiƒski. The first is the fact that 12 of the 14 visiting teams competing in Euro 2012 have chosen to stay in Poland rather than Ukraine. “Poles saw that the biggest stars in European soccer chose their country.

This definitely made them feel good,” he said.

The second reason is that there has been an enormous improvement in Poland’s infrastructure in the years preceding the tournament, improvements which Poles had been craving for years.

“That’s why you see so much excitement about the new highways. That’s why you see people driving in the direction of those new highways despite the traffic, just to see with their own eyes what has been achieved,” he said.

Mr Czapiƒski stated that Poles’ opinion of where their country stands will depend a lot on how well organized the Euro 2012 tournament turns out to be. “If things go well, then foreign journalists will report this and the Polish media in turn will report on those foreign media reports.

Positive coverage of Euro 2012 would be a significant source of national pride for Poles,” he said.

“Of course, if the Polish team does well in the tournament, that will be even more reason to rejoice,” he added, saying that “nobody is keeping their fingers crossed for things to go well more than Prime Minister Donald Tusk and his government.”

A political matter The national mood in Poland during the championship will determine Mr Tusk and his party Civic Platform’s standing in the polls in the period after Euro 2012 has finished, according to Mr Czapiƒski.

“It’s almost a do-or-die affair for them, politically,” he added. “If things go well they will recover from their loss in popularity after the controversy surrounding the Anti-Counterfeiting Trade Agreement (ACTA) which the Polish government initially wanted to ratify, the somewhat ill-prepared prescription drug

reform and the hugely unpopular decision to raise the retirement age to 67 for both men and women.”

The government’s determination for Euro 2012 to be a scandal-free affair is the main reason why, according to Mr Czapiƒski, “nothing untoward or violent will be allowed to happen,” due to a visibly high levels of police on the streets.

Asked how a successful hosting of Euro 2012 could influence the political narrative in Poland, taking into account the fact that the biggest opposition party, Law and Justice (PiS), consistently maintains that the Polish state is in a catastrophic condition and is terribly governed, Mr Czapiƒski said, “If the Euro is successful, then PiS will be left with only complaints about the investigation into the Smolensk catastrophe and the unpopular pension reform.”

“But don’t worry, even if there are tiny organizational hitches here and there during Euro 2012, PiS is sure to sniff them out and complain,” he added.

COURTESY OF WARSAW UNIVERSITY

14

How well Euro 2012 is organized will have a big impact on how Poles view their country, said Mr Czapiƒski

Do Poles like Poland?

Lack of community

Speaking about Poles’ general attitudes towards their country and themselves, Mr Czapiƒski said, “In the Polish mentality, there is no such thing as society or the state. There is only family and the nation.”

Poles feel like foreign subjects in their country, which they still associate mostly with “repression,” according to Mr Czapiƒski. There are, of course, historical reasons for this, such as half a century under communist rule and 123 years (1795-1918) when Poland did not even exist as a state and was partitioned by the Russians, the Prussians and the Austro-Hungarian empire. Thus, an “anti-state” mentality still exists in Poland today, Mr Czapiƒski suggests.

“There was a short moment in the early 1990s just after the fall of communism when Poles recognized the value of the state. That’s the only reason why we were able to enact such far-reaching economic reforms without massive social protests. But that sentiment has long passed,” he said, adding that today “Poles don’t respect their state and their politicians.”

“In the end everybody just depends on their individual achievements. They don’t even trust their neighbors, much less strangers. Poles don’t trust Poles,” he said, suggesting that a Pole would sooner trust a German or a French citizen than a fellow Pole. As proof of this he

the lowest trust levels in Europe,” he said.

National honor Polish reaction to a muchtalked-about recent BBC Panorama documentary, which depicted racist and antiSemitic incidents in Polish stadiums, was very critical of the documentary-makers them-

“In the end everybody depends on their individual achievements ...

Poles don’t trust Poles” points to the fact that Poles have more confidence in the European Parliament than in their own national parliament, an anomaly in Europe, he says, where the trend is usually the opposite.

Asked why this lack of trust in their fellow citizens exists Mr Czapiƒski said, “They believe people have bad intentions.” Since 1991 surveys carried out by Mr Czapiƒski have consistently found that only 13 to 15 percent of Poles believe people have good intentions in general. “We have one of

selves. Many commentators in Poland say the documentary presented a one-sided, negative view of the country. This reaction, according to Mr Czapiƒski, is conditioned by the way Poles themselves view their own nation.

“Poles reacted so critically to the documentary because it was considered an attack on Polish national pride. To Poles, the nation is sacred, so if someone accuses it of immoral actions, they feel they have to rush to its defense,” he said.

He agreed, however, that paradoxically the BBC documentary and other negative perceptions of Poland might turn out to be good in the long run.

“People will come to Poland and find it much better than they had expected. They will see that Poland has great food, and that Poles are hospitable. Everything depends on your frame of reference.”

Of course foreign media footage will count for a lot.

Foreign journalists who come to Poland will look into the nooks and crannies, not just at the nice stuff we show them.

“However, I don’t think there will be many journalists here who are themselves prejudiced against Poland.”

In the end, Mr Czapiƒski thinks Poland “will gain as much from Euro 2012 as we did from the green island metaphor which was construed after 2009 when Poland was the only country to register positive growth in the EU.” “The green island label helped us a lot image-wise and so will the Euro,” he concluded.

Remi Adekoya

Class-B spaces are increasing their share of the Polish office market

The planned Galeria Bursztynowa mall has secured two anchor tenants 16

17

LOKALE IMMOBILIA

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

Developers delivering smaller units The average new developer-built apartment delivered in April in Poland was sized 58.7 sqm, the lowest figure recorded since October 2005, according to a recent report by real estate brokerage Home Broker. The average home buyer is now looking for an apartment sized approximately 50 sqm. Developers are still offering housing units that are too large when compared to the current demand but the situation is changing for the better in this regard, the study said. Since the beginning of 2009, the average size of apartments built by developers decreased by 3.7 sqm. ●

In this issue Polnord in Port Praski . . . . . . . . . .15 SwedeCenter hotel . . . . . . . . . . . .15 Class-B offices . . . . . . . . . . . . . . . . .16 Property-related stocks . . . . . . . .16 New GTC offices . . . . . . . . . . . . . . .16 Galeria Bursztynowa tenants . .17 Galeria Aviator project . . . . . . . . .17

Polnord to take part in developing multifamily project in Port Praski The housing development is worth some z∏.320 million Warsaw Stock Exchange-listed developer Polnord and Elektrim, the owner of the Port Praski river port area in the Polish capital, have signed an agreement regarding cooperation on the development of a major multifamily housing project on the hitherto neglected premises.

The planned investment, which will be located between Warsaw’s ul. Okrzei, ul. Sierakowskiego, ul. Zamoyskiego and ul. Wrzesiƒska, will comprise approximately 40,000 sqm of usable residential space. The value of the scheme is estimated at around z∏.320 million.

Elektrim has selected Polnord due to its experience in the development of large-scale residential projects, the latter company said in a statement.

Polnord is now involved in schemes including the Miasteczko Wilanów housing development in Warsaw.

The entire Port Praski investment will comprise up to 500,000 sqm of space “The signing of the agreement concerning cooperation on the Port Praski investment

allows [the scheme] to make use of the potential and knowhow of Polnord,” company

president Bartosz Puzdrowski said in the statement.

He added that the project is

in a prime location, being right next to the Vistula River. “In the West, waterfront districts are the most attractive and sought-after locations to live in,” Mr Puzdrowski said.

For now, Polnord and Elektrim have decided not to reveal any further details pertaining to their planned cooperation.

More information should be available once negotiations have been completed.

Elektrim subsidiary Port Praski had earlier revealed that the company’s plans for the 38hectare Port Praski area in Warsaw’s Praga Pó∏noc district call for the development of a total of up to 500,000 sqm of commercial and residential space within the next few years.

Apart from the residential investment that Polnord will be involved in, the Port Praski neighborhood, whose significance should soon be boosted due to the construction of a new subway station, is also expected to get a number of high-rise buildings and an extensive park.

Adam Zdrodowski

SwedeCenter opens Mera Hotel & Spa in Sopot Real estate investor and developer SwedeCenter has opened its Mera Hotel & Spa hospitality project in Sopot on the Baltic Sea. The scheme includes 145 hotel rooms, as well as a spa, two restaurants and conference space.

“Mera Hotel & Spa is the first, but not the only, hotel project in SwedeCenter’s portfolio. We will soon launch construction on the Marriott Courtyard hotel in Gdynia,” Roger Andersson, managing director of SwedeCenter, said in a statement.

He added that SwedeCenter’s plans also include the development of hotel facilities as part of the company’s Busi-

ness Garden business parks that it will build in Warsaw and Wroc∏aw.

The four-floor Mera Hotel & Spa in Sopot was designed by the DiM’84 Dom i Miasto architectural studio of Czes∏aw Bielecki and built by Warbud.

The hotel, which is managed

by Legend Management, is expected to become a fourstar facility.

Part of the Inter IKEA Group, SwedeCenter has been active in the Polish property market since the early 1990s.

The company is currently involved in commercial projects in Poland including Brama Portowa offices in Szczecin.

Adam Zdrodowski

COURTESY OF SWEDECENTER

Legnica-based developer Gant Development has announced its second residential investment in the Polish capital. The company, which is also developing Kaskada na Woli in Warsaw, will build a project called Royal House in the city’s Wola district. The scheme will be developed on almost 1.4 hectares of land on ul.

Jana Kazimierza and will comprise three buildings offering a total of 358 apartments. The homes, whose sales have already begun, will be sized from 23 sqm to 95 sqm and are priced from z∏.5,200 per sqm.

Revitalization

COURTESY OF PORT PRASKI

Gant’s new Warsaw investment

JUNE 11-17, 2012, LI 17/23

The scheme includes 145 hotel rooms and a spa

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

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Industrial space developer Goodman Group has completed its first builtto-suit project at Kraków Airport Logistics Centre in southern Poland. The 7,584-sqm facility is leased to DB Schenker Logistics and is Goodman’s third development at the Kraków park. “The growing number of customers at Kraków Airport Logistics Centre confirms that the project has been tailored to match market requirements,” B∏a˝ej Ciesielczak, managing director of Goodman Poland, said in a statement.

Zoning for Elblàg’s Ogrody mall The city of Elblàg in Warmiƒsko-Mazurskie voivodship has enacted a zoning plan for the area in which CBRE Global Investors is planning its Centrum Handlowe Ogrody extension project.

The move will allow the investor to start construction in the third quarter of this year. ●

Office building classifications

Office ambiguities Less touted than their class-A peers, class-B buildings are actually increasing their share of the Polish office market

ings are aging,” Mr Ka∏´dkiewicz said.

Ambiguous classifications

Class-A office buildings may be getting the most attention from developers and tenants in the Polish market, but it is their class-B peers that account for more than a half of the existing office stock in the country.

As no official office building class definitions exist and owners tend to overrate their property for marketing reasons, the exact share in the market of the class-B office segment is difficult to assess.

However, ¸ukasz Ka∏´dkiewicz, office agency director at CBRE in Poland, said that class-B offices are roughly estimated to account for 56 percent of all modern – meaning delivered after 1989 – office space in Poland.

He added that the share is expected to increase since the existing office stock is getting old. “It is assumed that the class-B office sector is growing due to the fact that more and more build-

Real estate experts point out that there are no formal regulations in Poland which would allow for an authoritative classification of modern office space in the country.

The criteria currently in use are often imprecise and allow for varying interpretations.

Criteria including “highquality finishing materials” and “the best location in a given area” do not aid in making an objective assessment, noted Miko∏aj Kowalski-Barysznikow from the office department of Cushman & Wakefield.

Additionally, there is the “B+” office-space sector which, generally speaking, denotes a class-A building that is located outside the core downtown or a building that fulfills the technical criteria of class-B but is situated in a central location.

As a result, tenants assess office buildings by comparing them with other buildings available at a particular time in the same location. These serve as reference points, in

Property-related stocks Security

Closing price on June 6

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

66.70

0.15

63.90

92.00

-27.34

25,530,098

1,702.86

CELTIC

12.95

-0.31

12.76

22.70

-33.28

34,068,252

441.18

DOMDEV

30.90

3.38

23.50

50.80

-35.76

24,670,397

762.32

ECHO

3.71

1.64

3.05

5.45

-29.87

420,000,000

1,558.20

ELBUDOWA

91.00

-7.14

87.00

165.00

-40.72

4,747,608

432.03

ENERGOPLD

0.97

-42.94

0.97

3.95

-75.51

70,972,001

68.84

ERBUD

14.83

-1.13

14.15

30.50

-40.92

12,644,169

187.51

GANT

6.30

-15.44

5.85

12.95

-48.99

20,499,953

129.15

GTC

5.52

-9.36

5.38

19.48

-70.59

219,372,990

1,210.94

HBPOLSKA

0.19

-52.50

0.19

2.35

-90.87

210,558,445

40.01

JWCONSTR

4.02

-13.36

3.86

15.39

-73.71

54,073,280

217.37

LCCORP

1.29

-2.27

0.85

1.49

-13.42

447,558,311

577.35

MARVIPOL

8.20

0.99

6.20

9.95

-1.09

36,923,400

302.77

MIRBUD

1.03

-17.60

0.99

3.98

-74.25

75,000,000

77.25

MOSTALWAR

13.41

-3.18

11.30

34.41

-59.96

20,000,000

268.20

MOSTALZAB

1.00

-5.66

1.00

2.88

-63.24

149,130,538

149.13

ORCOGROUP

11.95

-2.92

9.68

34.68

-64.86

35,415,406

423.21

PBG

6.65

-66.05

6.65

154.80

-95.23

14,295,000

95.06

PLAZACNTR

2.20

-0.45

1.80

4.50

-51.86

297,174,515

653.78

POLAQUA

5.45

-5.22

4.53

18.80

-69.38

27,500,100

149.88

POLIMEXMS

1.14

-3.39

0.78

3.53

-62.38

521,154,076

594.12

POLNORD

14.50

19.34

10.49

28.18

-47.97

23,798,439

345.08

RANKPROGR

9.40

1.40

7.85

16.97

-29.06

37,145,050

349.16

ROBYG

1.19

-11.85

1.04

1.97

-41.95

257,935,500

306.94

RONSON

0.93

-6.06

0.77

1.45

-34.97

272,360,000

253.29

TRAKCJA

0.93

-13.89

0.65

3.13

-69.51

232,105,480

215.86

ULMA

41.01

-3.51

39.00

83.70

-50.89

5,255,632

215.53

UNIBEP

4.83

-3.40

4.47

6.90

-31.00

34,021,684

164.32

WARIMPEX

3.30

-15.38

2.95

8.98

-63.00

54,000,000

178.20

ZUE

6.73

-5.08

5.07

11.27

-37.69

22,000,000

148.06

Rac∏awicka 366 is one of the most recently completed class-B+ buildings in Warsaw the absence of a formal office classification, Mr KowalskiBarysznikow said.

Age matters In terms of technical specifications, the difference between new class-A and class-B buildings is often not that large, said Ma∏gorzata Brawura-Biskupska, a senior negotiator in Savills’ office agency section.

She pointed that out of 20 widely agreed-upon criteria that describe office space quality, 12 are obligatory for both class-A and class-B buildings.

Class-B, class-B+ and class-A buildings need to fulfill one, three and five of the remaining eight criteria, respectively, Ms Brawura-Biskupska said.

Very often, it is the age of a given building that determines the classification of its office space, noted her agency colleague, Dariusz Karwaƒski. A building that used to be a class-A facility several years ago may now be

“degraded” to class B for technical reasons.

CBRE’s Ka∏´dkiewicz quoted the Warsaw Corporate Center building in the Polish capital as an example of a property that, despite its prime location, no longer

“The vast majority of new office buildings, especially in Warsaw, belong to class A” belongs to class A because of its age and technical specifications.

Lower costs According to Mr Ka∏´dkiewicz, the difference in rents between class-A and class-B buildings in similar locations may amount to approximately 25 percent in non-central Warsaw and even

40 percent in the capital’s downtown.

Savills’s Brawura-Biskupska noted that class-B offices’ tenants include outsourcing firms and companies offering call-center services, as well as businesses that, to save costs, decide to move their back-office departments there.

The share of class-B buildings in the whole office stock is higher in regional cities, which results from the needs of tenants and the fact that some of the buildings there were adapted to office functions and do not meet the class-A requirements, said Savills’s Karwaƒski.

He added that the vast majority of new office buildings, especially in Warsaw, belong to class A. Exceptions include Warsaw’s Jerozolimskie Point, which was completed last year, and Pu∏awska 366, which opened for business in April of this year.

Adam Zdrodowski

GTC delivers fifth Platinium Business Park building in Warsaw Warsaw Stock Exchange-listed developer Globe Trade Centre has obtained an occupancy permit for the fifth building in its Platinium Business Park office complex in the Polish capital’s Mokotów district.

The newly delivered phase of the park, which is located at the intersection of Warsaw’s ul.

Wo∏oska and ul. Domaniewska, comprises approximately 11,000 sqm of leasable space and is now more than 90 percent leased out.

Subsidiaries of the PSA Peugeot Citroen Group have recently leased space at the latest phase of Platinium Business Park, whose tenants also include VeriFone Poland, Schrack-Seconet, K2 and Starcom.

The architectural design of

COURTESY OF ADVANCED PUBLIC RELATIONS

Goodman delivers Kraków BTS

JUNE 11-17, 2012

COURTESY OF SAVILLS

16

The project comprises 11,000 sqm of leasable space Platinium Business Park V was provided by Grupa 5 Architekci. Warbud was the general contractor of the building, for which the developer is plan-

ning to obtain LEED Gold certification of energy efficiency and environmental performance.

Adam Zdrodowski

JUNE 11-17, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

17

Shopping centers

Commercialization of Galeria Bursztynowa mall Galeria Aviator underway gets Tesco and OBI stores

A Tesco hypermarket and an OBI DIY store will be anchor tenants at the Galeria Bursztynowa shopping center that Narev Inwestycje plans to build in Ostro∏´ka in the north of the Mazowieckie voivodship.

The companies have leased 7,869 sqm and 7,962 sqm of

space at the mall, respectively, with the transactions having been brokered by Cushman & Wakefield, which is responsible for the design and commercialization of the 35,000sqm facility.

“We are currently in talks with other potential tenants who will complement the offer at the shopping center,” Tomasz Górski, a senior negotiator from the retail department of Cushman & Wakefield, said in a statement.

After the lease deals with Tesco and OBI, the Galeria

Bursztynowa project is 50 percent leased out. “The presence of an international food retailer and a well-known DIY store will certainly be an incentive for other companies,” Mr Górski said.

Galeria Bursztynowa, whose leasable area will amount to almost 30,000 sqm, will be developed on Ostro∏´ka’s ul. Gorbatowa and ul. ˚ebrowskiego. The investor plans to launch construction in autumn this year and complete the mall in November 2013.

COURTESY OF QUESTIA

The planned 35,000sqm regional shopping center is now 50 percent leased out

Adam Zdrodowski

COURTESY OF FIRST PUBLIC RELATIONS

The investment will deliver a total of 38,500 sqm of space

The Galeria Bursztynowa mall is scheduled to be completed in November 2013

Master Management Group has begun the commercialization of a new regional shopping center called Galeria Aviator that Kullar Gobi Polska is planning to develop in Mielec, Podkarpackie voivodship.

The project, which will be the first large-scale retail development in the city, will comprise a 30,000-sqm enclosed single-floor shopping center and a 8,500 building housing a DIY store. The shopping center will include a hypermarket

and a four-screen movie theater.

“We can see a lot of interest from tenants due to the potential of Mielec which currently suffers from a shortage of modern retail space,” Micha∏ Masztakowski, leasing and development director at Master Management Group, said in a statement.

According to Master Management Group, the catchment area of Galeria Aviator encompasses more than 60,000 inhab-

itants living within less than 10 minutes’ drive. “We are in advanced talks with tenants, including a hypermarket operator,” Mr Masztakowski said.

Kullar Gobi Polska is now preparing to apply for a building permit for Galeria Aviator.

Construction is expected to launch at the turn of 2012 and 2013, with the DIY store scheduled to open in Q3 2013 and the rest of the investment in Q4 2014.

Adam Zdrodowski

Maybe social

media

is just a fad.

But these companies don’t think so. *

Combining the most in-depth social media knowledge with the sophisticated insights of consumer behavior

www.valkea-attention.com *Attention USA clients

THE LIST

JUNE 11-17, 2012

www.wbj.pl

19

Motor Industry & Freight

Car Rental Companies Ranked by total number of vehicles

Hubert Laszczyk

✓ ✓

21

20 Bia∏ystok; Katowice; Legnica; Olsztyn; Toruƒ; Bielsko Bia∏a; Kielce; Lublin; Opole; Warsaw; Bydgoszcz; Kraków; ¸ódê; Rzeszów; Wroc∏aw; Gdaƒsk; Koszalin; Poznaƒ; Szczecin; Zielona Góra

100 1991

Rados∏aw Lesiak

700-10,000

✓ ✓

18

WND Warsaw; Kraków; Gdaƒsk; Poznaƒ; Wroc∏aw; Gliwice; Katowice; Lublin; Szczecin; Rzeszów

120 2001

Pawe∏ Reczyƒski

1,100 + 20% cost of rental

✓ ✓

21

28 WND

90 1997

Grzegorz Wendyƒski

236 372 1,242

WND

✓ ✓

25

20 Bydgoszcz; Gdaƒsk; Katowice; Kraków; ¸ódê; Olsztyn; Poznaƒ; Rzeszów; Szczecin; Warsaw; Wroc∏aw

80 1974

Andrzej Marconi

-

150-800 300-1,000 800-2,500

1,000-5,000

✓ ✓

21-25

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

49 1989

✓ -

-

99-499 WND WND

From 1,000

✓ ✓

21

3 Warsaw; Kraków; Tricity

18 2008

Milan Os´ka

✓ -

-

-

120-800 WND WND

1,700-6,100

✓ ✓

21

13 Bydgoszcz; Gdaƒsk; Gdynia; Katowice; Kraków; ¸ódê; Poznaƒ; Rzeszów; Szczecin; Warsaw; Wroc∏aw

22 1998

Krystyna Frankowska

WND

✓ ✓

✓ -

-

119 238 693

500

✓ ✓

21

7 Warsaw; Kraków; Kielce; Gdaƒsk; Kalisz; Poznaƒ; Ostrów Wlkp.

48 1999

Piotr Wrzos

WND WND WND WND

Fiat; Ford; Opel; Skoda; Honda; Subaru; Mercedes; Audi; Volvo; Volkswagen

✓ -

-

-

92-307 375-1,650 770-2,730

1,500; 2,000; 4,000

✓ ✓

21; 25

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

18 1994

Józef Kamiƒski; Sylwester Kamiƒski; Aleksander Kamiƒski

WND WND WND WND

WND WND WND WND

Opel; Ford; Nissan; Hyundai; Citroen; Skoda; Suzuki

✓ -

✓ -

-

90 270 85

1,000

✓ ✓

21

10 Bia∏ystok; Bydgoszcz; Gdaƒsk; Gdynia; Lublin; Poznaƒ; Sopot; Szczecin; Toruƒ; Warsaw; Wroc∏aw; Zielona Góra

14 2003

Wies∏aw Kasierski

WND WND WND WND

WND WND WND WND

WND WND WND WND

Fiat; Ford; Opel; Peugeot; Skoda; Volkswagen; Suzuki

✓ -

✓ -

-

74-406 150-812 517-2,700

800-3,000

✓

20

1 Wroc∏aw

8 1993

Micha∏ Werner

38 38 -

0.5 0.8 1.1 1.2

0.5 0.8 1.1 1.2

224 490 470 484

Opel; Skoda; Nissan; Dacia

✓ -

-

-

80-130 294-489 490-850

1,500

✓ ✓

21

2 Warsaw

3 2003

W∏odzimierz Zawojski

A.R. Centrum Wynajmu i Turystyki ul. Kolumba 1/6, 70-035 Szczecin 14 91 434-0006/91 434-0006 biuro@centrumwynajmu.pl www.centrumwynajmu.pl

31 28 3

WND 0.5 WND WND

WND 0.5 WND 0.5

WND WND WND WND

Fiat; Ford

✓ ✓

-

✓ -

90 256 560

1,000-2,000

✓

21

1 Szczecin

5 1990

Krystyna Weso∏owska

Local Rent a Car Tourist Service Sp. z o.o. ul. M∏ynarska 13/50, 01-205 Warsaw NR 22 826-7100/22 826-7494 info@LRC.com.pl www.LRC.com.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

WND WND WND WND

WND

WND WND

WND WND WND

WND

WND WND

WND

WND

WND 1993

M. Kotomski; Micha∏ Adamek

Number of cars rented

Makes of rental cars

Buses / Motorcycles

110 1989

Total number of cars / Number of Revenue from Total revenue car rentals cars: (z∏. mln) (z∏. mln) Passenger / Vans / Other

Vans / Trailers

21

14 Bydgoszcz; Katowice; Gdaƒsk; Kraków; Lublin; ¸ódê; Poznaƒ; Szczecin; Warsaw; Wroc∏aw

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

Passenger cars / Limousines

Full-time / Number of offices / employees Year Locations founded in Poland

Rank

Minimum age to rent

Possibility of leaving the car at another branch / Car pick-up and return at a selected location

www.bookoflists.pl

Audi; BMW; Chevrolet Spark; Citroen; Fiat; Ford; Honda; Hyundai; Infinity FX37, G37; Iveco Daily; Kia Ceed; Lancia Delta; Mercedes-Benz; Mitsubishi; Nissan; Opel; Peugeot; Renault; Saab; Skoda; Subaru Forester; Suzuki; Toyota; Volvo; Volkswagen

✓ -

✓ -

-

Cost (z∏.): Per day / Per weekend / Deposit (z∏.)

Per week

1st half of 2011 / 2010 / 2009 / 2008

Express SA ul. RzemieÊlnicza 26, 30-403 Kraków 1 12 300-0300/12 254-0019 express@express.pl www.express.pl

4,122 WND 176 -

WND 113.7 91.3 80.2

WND WND WND WND

10,500 24,578 19,803 15,762

Jupol Car Sp. z o.o./ Avis Licensee ul. ¸opuszaƒska 12A, 02-220 Warsaw 2 22 572-6500/22 572-6501 info@avis.pl www.avis.pl

1,500 1,470 30 -

23.0 41.0 46.0 46.0

WND WND WND WND

20,882 37,000 34,166 WND

Audi; Ford; Mercedes-Benz; Nissan; Opel; Renault; Toyota; Volkswagen; Volvo

✓ -

✓ -

-

160 360 1,200

Credit card

Sixt rent a car Polska ul. Arabska 9, 03-977 Warsaw 3 22 511-1550/22 511-1556 biuro@sixt.pl www.sixt.pl

1,200 1,150 50 -

WND WND WND WND

WND WND WND WND

WND WND WND WND

Mercedes; BMW; Volvo; SEAT; Ford; Nissan; Chevrolet

✓ ✓

✓ -

✓

122-1,600 400-900 800-8,500

Inter Best-97 Sp. z o.o. (Europcar) ul. Poleczki 35, 02-822 Warsaw 4 22 255-5600/22 255-5602 office@europcar.com.pl www.europcar.pl

1,020 1,020 -

16.1 29.3 29.1 29.4

16.1 29.3 29.1 29.4

15,190 29,273 27,140 32,438

Ford; Renault; Volvo; Mercedes; Audi; BMW; Opel

✓ -

-

-

336-952 316-900 1,140-3,250

Hertz Rent a Car (Orbis Transport Sp. z o.o.) ul. ¸opuszaƒska 47, 02-232 Warsaw 5 22 500-1660/22 500-1665 rezerwacje@hertz.com.pl www.hertz.com.pl

600 600 -

WND WND WND WND

WND WND WND WND

WND WND WND WND

Renault; Hyundai; Ford; Nissan; Volvo, Kia

✓ -

-

-

Budget Rent a Car (Car-Pol Leasing Sp. z o.o.) ul. 17 Stycznia 56, 02-146 Warsaw 6 22 868-3336/22 846-5986 info@budget.com.pl www.budget.pl

500 500 -

WND WND WND WND

WND WND WND WND

7,000 15,400 14,300 14,500

Volkswagen; Ford; Volvo; Suzuki; Renault; Opel

✓ -

-

99rent Sp. z o.o. ul. Modliƒska 248, 03-152 Warsaw 7 22 630-6380/22 630-6381 info@99rent.pl www.99rent.pl

389 387 2 -

WND WND WND WND

WND WND WND WND

WND WND WND WND

Volkswagen; Opel; Ford; Renault; Kia; Skoda; Nissan; Peugot; BMW

✓ -

Rent A Car Poland Sp. z o.o. (National and Alamo Car Rental Licensee) ul. Âwi´tojaƒska 39/3, 81-391 Gdynia 8 58 621-0606/58 621-0777 national@nationalcar.com.pl www.nationalcar.com.pl

350 350 -

WND WND WND WND

WND WND WND WND

WND WND WND WND

Honda; Mazda; Volkswagen; Kia; Opel; Citroen; Nissan

Car Net Polska Sp. z o.o. ul. Podmiejska 32, 62-800 Kalisz 9 506-160-022 centrala@carnet.pl www.carnet.pl

278 63 WND WND

7.7 13.2 WND WND

7.7 13.2 WND WND

341 320 WND WND

Joka Kamiƒski Sp.j.

Al. Korfantego 9, 40-005 Katowice 10 32 350-1450/32 203-7440 joka@joka.com.pl www.joka.com.pl

180 180 -

WND WND WND WND

WND WND WND WND

Wikar Trading Sp. z o.o.

(RAC GROUP RENT A CAR) ul. Bitwy Warszawskiej 1920 r. 11, 11 02-366 Warsaw 22 868-7525 biuro@racgroup.pl, www.racgroup.pl

160 150 10 -

WND WND WND WND

MiCaR Michael’s Car Rental ul. Kamieƒskiego 12, 51-124 Wroc∏aw 12 71 325-1949/71 735-1025 rent@micar.pl www.micar.pl

128 89 30 9

Trust Rent a Car Sp.c. ul. Konstruktorska 4, 02-673 Warsaw 13 22 843-0580/22 339-0256 office@trustrentacar.pl www.trustrentacar.pl

Notes: Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose.

Research for The List was conducted in November/December 2011. Number of employees is as of November 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

WND WND WND WND

79-359 299-359 NA

500-1,000

✓ ✓

Top local executive / Title

President

Country Manager

President

Managing Director

Andrzej Witkowski General Director

President

President

Co-owner

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

20

MARKETS

www.wbj.pl

JUNE 11-17, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,393.45 (June 7 close)

S&P500

2,827.34 (June 7 close)

-1.09% (for the week)

FTSE100

1,314.99 (June 7 close)

-0.42% (for the week)

DAX

5,447.80 (June 7 close)

0.36% (for the week)

2.38% (for the week)

Spain on the mind

NIKKEI225 6,144.22 (June 7 close)

8,639.72 (June 7 close)

-1.92% (for the week)

1.14% (for the week)

CHANGE: -0.03%

CHANGE: 6.74%

CHANGE: 2.97%

CHANGE: -4.42%

CHANGE: 1.13%

CHANGE: 0.93%

(year to June 7)

(year to June 7)

(year to June 7)

(year to June 7)

(year to June 7)

(year to June 7)

52-week high: 13,359.60

52-week high: 3,134.17

52-week high: 1,422.38

52-week high: 6,084.10

52-week high: 7,523.53

52-week high: 10,255.20

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,135.79

Andrew Nawrocki WBJ market analyst Greece finally got off the front pages last week, with eyes turning instead towards Spain. The lingering debt crisis within Europe continued to move markets, including Polish indices. Last Monday, Polish blue-chips managed to close higher, one week after a dreadful five-day stretch.

Despite disappointing US retail sales for April and a lackluster start for markets across the Atlantic, the bluechip WIG20 managed to uphold gains made throughout the day, unlike the mWIG40 and sWIG80, which both closed down by about 1 percent.

On Tuesday, equity markets finished with mixed results after Spain’s finance minister spooked investors by saying credit markets were slowly closing to his country.

Both the overall WIG and

Major indices WIG

37,707.25 (June 6 close)

WIG20

2,110.91 (June 6 close)

06.06

05.06

04.06

01.06

31.05

30.05

29.05

28.05

25.05

24.05

23.05

22.05

21.05

06.06

05.06

04.06

01.06

31.05

30.05

29.05

28.05

25.05

24.05

23.05

2,000

22.05

2,040

36,000

21.05

36,800

18.05

2,080

17.05

37,600

16.05

2,120

15.05

38,400

14.05

2,160

11.05

2,200

39,200

10.05

40,000

18.05

52-week low: 2,035.80

17.05

Change year to June 6: -3.79%

16.05

52-week low: 36,549.47

15.05

52-week high: 2,895.87

Change year to June 6: -1.59%

14.05

Change for the week: 1.87%

11.05

52-week high: 49,747.78

10.05

Change for the week: 0.96%

Top 5 ATMGRUPA PEMUG ENERGOPOL MOSTALEXP POLNORD

Closing 1.21 1.42 7.80 0.78 14.50

% change (week) 52-week high 34.44 2.68 26.79 1.69 21.31 8.91 20.00 1.86 19.34 28.40

52-week low 0.83 0.86 4.91 0.52 10.23

Top 5 PGE KGHM PKOBP PGNIG TPSA

Closing 18.90 130.40 32.70 3.85 16.42

% change (week) 5.35 4.24 3.81 3.22 2.63

52-week high 24.98 199.60 44.19 4.65 19.19

52-week low 15.98 102.40 27.95 3.25 14.30

Bottom 5 PBG HBPOLSKA POINTGROUP AWBUD POLJADLO

Closing 6.65 0.19 0.20 0.94 0.27

% change (week) -66.05 -52.50 -35.48 -31.88 -30.77

52-week low 6.62 0.19 0.18 0.89 0.27

Bottom 5 PBG GTC TVN PKNORLEN POLIMEXMS

Closing 6.65 5.22 7.55 32.65 1.14

% change (week) -66.05 -14.29 -5.63 -4.67 -3.39

52-week high 156.00 19.50 17.45 53.15 3.55

52-week low 6.62 5.22 7.54 30.33 0.77

52-week high 156.00 2.45 1.25 2.31 1.36

Currency report

Speculative trading?

Other indices Change year to June 6: 6.35%

NewConnect

36.69 (June 6 close)

WIG-Banki

5,389.76 (June 6 close)

SOURCE: WSE

06.06

05.06

04.06

01.06

31.05

30.05

29.05

28.05

25.05

24.05

23.05

22.05

21.05

06.06

05.06

04.06

01.06

31.05

30.05

29.05

28.05

25.05

24.05

5,100

23.05

36

22.05

5,220

21.05

37

18.05

5,340

17.05

38

16.05

5,460

15.05

39

14.05

5,580

11.05

40

10.05

5,700

18.05

52-week low: 4,944.19

17.05

Change year to June 6: -2.77%

16.05

52-week low: 36.59

15.05

52-week high: 7,071.91

Change year to June 6: -11.57%

14.05

Change for the week: 1.73%

11.05

52-week high: 56.98

10.05

Change for the week: -2.65%

41

Adam Narczewski X-Trade Brokers DM SA

06.06

05.06

04.06

01.06

31.05

30.05

29.05

28.05

25.05

24.05

23.05

22.05

52-week low: 8,218.71

21.05

06.06

05.06

04.06

01.06

31.05

30.05

29.05

28.05

25.05

8,800

24.05

2,100

23.05

8,980

22.05

2,180

21.05

9,160

18.05

2,260

17.05

9,340

16.05

2,340

15.05

9,520

14.05

2,420

11.05

9,700

10.05

2,500

18.05

52-week low: 2,076.52

17.05

52-week high: 12,593.39

Change year to June 6: -0.47%

16.05

Change for the week: -1.17%

15.05

9,151.01 (June 6 close)

52-week high: 2,922.89

14.05

2,179.92 (June 6 close)

11.05

sWIG80

Change for the week: -1.08%

10.05

mWIG40

WIG20 dropped nearly 2 percent as a result.

Wednesday brought relief, with markets rallying on hopes that major central banks might act to bolster the global economy. Though the European Central Bank left rates unchanged, many interpreted ECB president Mario Draghi’s comments to mean that action would be taken in the near term. Stocks jumped, with the WIG20 outperforming most European indices, gaining 3.49 percent. Financials PKO BP (4.77 percent) and PZU (2.70 percent) led the gains.

Gains continued throughout Europe on Thursday, although Poland’s markets were closed due to the Corpus Christi religious holiday.

On Friday, the WIG rose 2.17 percent while the WIG20 rose 2.03 percent. ●

The first week of June brought significant movement on the z∏oty market, not all of which was explainable. Overall, sentiment on financial markets improved and we can thank the major central banks for that. The Bank of China, along with the Bank of Australia, cut interest rates, while the Fed’s representatives gave a subtle signal of a possible monetary expansion to happen soon.

Only the ECB’s chief calmed investors’ optimism by keeping interest rates unchanged in the euro zone.

The EUR/USD finally rebounded from levels below $1.23, and reached its twoweek high at $1.26 on Thursday. Friday’s risk aversion increased and the major currency pair was denied further advancements to finish the week in the $1.2450 area.

In Poland the NBP kept interest rates unchanged at 4.75 percent. During the press conference to announce the news NBP president Marek Belka said inflation will remain above the upper target limit, the economy will slow down, but the z∏oty will tend to appreciate in the long-term. Investors rather ignored the message as the local currency was positively affected by external factors.

The most surprising trading day was Thursday, when investors in Poland were out of the market due to a national holiday.

The EUR/PLN slid all the way to z∏.4.23 from z∏.4.40 on Monday.

On Friday the market corrected this obvious speculative movement and the EUR/PLN finished the week in the z∏.4.30 area. ●

currency rates

4.3643 08.06

SOURCE: NBP

4.5213 05.06

4.3855

4.5401 04.06

06.06

4.5731

4.4833 31.05

0.1067

0.1051 08.06

4.0

01.06

PLN-100JPY

4.8

06.06

0.1060 05.06

0.1044 04.06

01.06

0.1073 31.05

3.6159

3.5870 08.06

0.1

0.1057

PLN-RUB

0.11

06.06

3.6570 05.06

3.6651 04.06

3.6743 01.06

3.6545 3.5

31.05

5.3285 08.06

06.06

05.06

04.06

01.06

31.05

3.4703

3.4566 08.06

5.20

PLN-CHF

3.7

5.3662

5.4208

5.4417

PLN-GBP

5.45

06.06

3.5359 05.06

3.5431 04.06

3.5777 01.06

3.2

31.05

08.06 4.3078

4.3423

3.5

3.5372

5.4858

5.70

5.4686

PLN-USD

3.8

06.06

4.3922 05.06

4.3889

4.4007 04.06

01.06

4.20

31.05

4.35

4.4126

PLN-EUR

4.50

SPORTS

JUNE 11-17, 2012

www.wbj.pl

21

Euro 2012

The UEFA president gave his thoughts on racism, Euro 2012’s legacy and Poland’s chances on the pitch

we’re not far from being perfect, we’ve done everything we can,” he added.

Referring to the long-term legacy of the tournament the UEFA president said that both Poland and Ukraine had moved forward 30 years in terms of the progress made with communication, infrastructure and railways.

But while Mr Platini was happy to talk about the successes of the two host nations, the key issue that kept cropping up was racism, and in particular the fallout related to the BBC’s Panorama documentary on Poland and Ukraine, which focused on racism at soccer matches in the two countries and caused a public outcry.

“I didn’t watch it [the

UEFA president Michel Platini was in Warsaw last Wednesday to officially open Euro 2012 and he declared himself “delighted” to be able to have this event in Poland and Ukraine.

“I’d like to congratulate these two countries in the name of football,” Mr Platini said.

“The Poles and the Ukrainians have put a lot of passion into what they’ve done. … In all honesty they’ve succeeded in the challenge.”

“It’s not perfect … but

Panorama documentary] … but if we look at Europe, there is more and more nationalism and to point the finger for racism at Poland and Ukraine is easy to do.”

“It’s not only a football problem, it’s a problem with society and I am not the head of society,” he said.

However, despite adding that he didn’t think sports could eradicate prejudice, he did say that he felt it could help weaken the problem.

But referring to comments from Manchester City and Italy striker Mario Balotelli that he would walk off if any fans are racist towards him at a Euro 2012 match Mr Platini joked, “Balotelli needs to be in the starting 11 first,” before adding, “there needs to be a

COURTESY OF KLEARCHOS KAPOUTSIS/WIKIMEDIA COMMONS

Platini upbeat as Euro 2012 gets underway

Michel Platini said Poland and Ukraine had “succeeded in the challenge” of preparing for Euro 2012 yellow or red card [from the referee] if he goes off the pitch.”

No crystal ball Coming back to the action on the field, Mr Platini said he

didn’t know if Poland and Ukraine could make it out of the group stages.

“I don’t have a crystal ball and I don’t know who will get out of the groups,” he said before pointing to the exam-

ples of Denmark in 1992 and Greece in 2004 to show that anyone can win the tournament.

“That’s what makes football such a great game.”

David Ingham

American football

Euro 2012

Warsaw Eagles defeat the Devils Wroc∏aw in statement performance

The upcoming matches

The Warsaw Eagles made a big statement at home against the Devils Wroc∏aw in week 8 of the Topliga season. Touchdowns came from six different players in a comprehensive 4827 victory over the Devils to ensure the Eagles moved up to second in the standings.

The Eagles led for most of the game, moving the ball effectively through both their running and passing games and holding Wroc∏aw’s Niles Mittasch and Krzysztof Wydrowski in check most of the way. Warsaw broke a sixgame losing streak against the Devils with the win, while at the same time handing Wroc∏aw their biggest defeat in over three years.

Kevin Lynch threw three first-half touchdowns, including a 61-yarder to Marcin Jad∏owski, to put the Eagles 29-7 up near the end of the second quarter. In a closer second half Mr Wydrowski hit Layton Jones for a 14-yard

COURTESY OF MARCIN WARPECHOWSKI/PLFA

The Eagles finally got revenge against the Devils with a 48-27 victory

The Eagles’ Kevin Lynch looks for a receiver touchdown reception to make the score 27-20 before 19 straight points for the Eagles secured a comfortable victory.

Assuming there are no huge surprises in the Topliga regular season’s final two weeks, the loss virtually eliminates the Devils from contention for the number-one seed in the playoffs. Even with a victory over the Gdynia Seahawks in the next round, the Devils would likely lose out on the top seed to the Eagles based on the current tiebreaker scenarios.

In week eight’s other games, Koz∏y Poznaƒ missed out on a chance to all but seal up the final playoff spot in Katowice, succumbing to a late comeback by the AZS Silesia Rebels, who scored two touchdowns late in the fourth quarter to win 19-14.

Elsewhere, the Gdynia Seahawks had to come from behind twice in the first half, withstanding a determined effort from the Dom-Bud Kraków Tigers to record a 5116 victory.

Alex Zarganis

With Euro 2012 now underway, all eyes are on Poland and Ukraine to find out which eight teams will make it through the group stages and into the knockout rounds.

The 18 group matches left to play could all potentially be great match-ups, but there are still a number of standout games. These include: Group D’s opening games of France vs England and Ukraine vs Sweden, as well as Poland’s

matches against Russia (which for historical reasons is much more than just a soccer match) and the Czech Republic (which could determine whether the co-hosts make it through). On June 13, the Netherlands plays Germany, in what promises to be a pulsating affair, and finally the Italy vs Republic of Ireland match on June 18 is sure to evoke memories of Ireland’s famous win over the Azzuri at World Cup ‘94. ●

Monday June 11

Saturday June 16

France vs England – 6 pm, Donbass Arena, Donetsk Ukraine vs Sweden – 8:45 pm, Olympic Stadium, Kiev

Czech Republic vs Poland – 8:45 pm, Municipal Stadium, Wroc∏aw Greece vs Russia – 8:45 pm, National Stadium, Warsaw

Tuesday June 12

Sunday June 17

Greece vs Czech Republic – 6 pm, Municipal Stadium, Wroc∏aw Poland vs Russia – 8:45 pm, National Stadium, Warsaw

Wednesday June 13

Denmark vs Germany – 8:45 pm, Arena Lviv, Lviv Portugal vs Netherlands – 8:45 pm, Metalist Stadium, Kharkiv

Monday June 18

Denmark vs Portugal – 6 pm, Arena Lviv, Lviv The Netherlands vs Germany – 8:45 pm, Metalist Stadium, Kharkiv

Croatia vs Spain – 8:45 pm, PGE Arena, Gdaƒsk Italy vs Republic of Ireland – 8:45 pm, Municipal Stadium Poznaƒ

Thursday June 14

Tuesday June 19

Italy vs Croatia – 6pm, Municipal Stadium, Poznaƒ Spain vs Republic of Ireland – 8:45 pm, PGE Arena, Gdaƒsk

Friday June 15 Ukraine vs France – 6 pm, Donbass Arena, Donetsk Sweden vs England – 8:45 pm, Olympic Stadium, Kiev

England vs Ukraine – 8:45 pm, Donbass Arena, Donetsk Sweden vs France – 8:45 pm, Olympic Stadium, Kiev Knockout games were undecided as WBJ went to press Quarter Finals – June 21, 22, 23, 24 Semi Finals – June 27, 28 Final – July 1 ●

22

LIFESTYLE

www.wbj.pl

Concert

JUNE 11-17, 2012

Opera

Going solo in Gdaƒsk Ghostly goings on

Noel Gallagher kind of stripped-down riffs as groups such as The Ramones and The Strokes are currently working on their second album, “The Vaccines Come Of Age.” Tickets for the event are priced from z∏.85.

which has so far sold more than 600,000 copies in the UK alone since it hit the shops in October 2011.

Highly rated indie rockers The Vaccines will be the main support act at the concert. The band, which plays the same

Located right next to the Chopin Museum, Michelin Guide-listed Tamka 43 provides a refined, cultured setting, full of artistic inspiration. Its chefs are at the sharp edge of culinary creativity in Warsaw, serving dishes such as an hors d’oeuvre of raw fish, foamed grapefruit juice and crispy rice that left WBJ more than a little intrigued

Gareth Price

Reservations: 22 44 16 234 info@tamka43.pl

For more information log on to teatrwielki.pl Natalia Kopytnik

Chambao June 17 Sala Kongresowa Palace of Culture & Science Pl. Defilad 1 Warsaw

COURTESY TAMKA 43

Tamka 43 ul. Tamka 43 Warsaw tamka43.pl

COURTESY OF TAMKA 43

WBJ’s restaurant review feature

Set to Tchaikovsky’s outstanding score, Mariusz Treliƒski’s production succeeds in portraying the haunting and somber mood of the tale.

Since its Polish premiere in 1890, The Queen of Spades has garnered much acclaim, and this production, which stars Boiko Zvetanov in the lead role, will no doubt be equally well received.

Flamenco chillout

Cutting-edge cuisine

brought something new to Poland’s dining scene, with his stated aim being to deliver “surprising chords and punch lines” through his dishes.

And at z∏.39 for a two-course lunch, gastronomic adventures of the Tamka 43 variety rarely come at a more reasonable rate.

While prices rise for dishes on the restaurant’s A La Carte and Degustation menus, so too does the wow-factor. Cream of venison soup with veal sweetbreads and pomegranate with celery, as well as zander with cauliflower and dressing of chocolate show the lengths to which the restaurant will go to stand out from the crowd.

Desserts, while certainly not the usual fare, are more mainstream, but still equally delicious. Chocolate fondant served with vanilla ice cream comes particularly recommended, but for the more adventurous the restaurant has also been known to serve vegetable ice cream.

For an insight into the new wave of Polish dining, sleek and sophisticated Tamka 43 is certainly not to be missed.

Based on Alexander Pushkin’s short story of the same name, The Queen of Spades follows the story of Herman, a card player obsessed with learning an elderly countesses’ lucky secret, which he believes will bring him the wealth he so desires.

By pretending to be in love

with the countess’ granddaughter, Liza, Herman attempts to enter the countess’ confidence. He then literally frightens the old woman to death when she refuses to tell him the secret. Later her ghost reveals the trick, and Herman follows her instructions to win a fortune.

On the third night, he bets on the ace – but when the cards are shown, he finds he has bet on the Queen of Spades, rather than the ace, and loses everything.

Concert

David Ingham

about what was coming next during a recent lunchtime visit.

While not all the food delivered the same sense of surprise, a stylishly presented starter of guinea fowl terrine with Jerusalem artichoke and black salsify made it clear that this is no ordinary eatery. The main course – cod with chicory and mead – was actually a little pedestrian by comparison, relying more on simple flavors than on obscure seasoning or unusual combinations.

Tamka 43’s co-owner, chef Robert Trzópek, has bags of experience working in worldclass restaurants, with stints at Noma in Copenhagen and el Bulli on Spain’s Costa Brava. A specialist in molecular gastronomy, Mr Trzópek has certainly

The Queen of Spades June 14-17 Teatr Wielki Plac Teatralny 1 Warsaw

Flamenco band Chambao, who hail from Málaga in Spain, is coming to the capital this June to entertain fans with their chilled-out electronic vibe.

The group, which is named after a type of beach tent and was first discovered by the Dutch musician Henrik Takkenberg, started out as a trio of Spanish musicians, with singer María del Mar now the only remaining founding

COURTESY OF FLIKR/VOCES.ORG

Noel Gallagher, the former leader and songwriter for Manchester rock band Oasis, will be in Poland this month as part of a European tour to support his first solo record, “Noel Gallagher’s High Flying Birds.”

Mr Gallagher, the man behind legendary guitar anthems such as “Cigarettes and Alcohol,” “Slide Away” and “Don’t Look Back in Anger,” has enhanced his already massive popularity among the European public with his most recent release,

COURTESY OF FACEBOOK/NOEL GALLAGHER

Noel Gallagher’s High Flying Birds June 20 Pl. Zebraƒ Ludowych, Euro 2012 Fan Zone, Gdaƒsk

Chambao Chambao

member.

This will be their second visit to Poland following two shows in 2007, both of which received rave reviews.

Tickets for the event are priced from z∏.100.

For more information log on to kongresowa.pl David Ingham

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

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

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

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

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

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

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

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

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

LAST WORD

JUNE 11-17, 2012

www.wbj.pl

23

Tech Eye

COURTESY OF MICROSOFT

Microsoft’s Xbox SmartGlass

E3, the biggest event in the videogame industry’s calendar, was held last week in Los Angeles amid a haze of smoke and spectacle, glitz and glamor. Execs and entertainment luminaries alike proclaimed 2012 the most exciting year for the industry “like, ever!”

A decade ago they would have actually meant it. Back then E3 was a debauched affair, an exercise in excess featuring scantily clad “booth babes” and crowds upwards of 60,000. There were overfed nerds as far as the eye could see – attending was like navigating a vast sea filled with agitated pufferfish.

The times have changed. The

2012 event worked hard to conjure the buoyant spirit of conventions past, but the strain showed. Years of economic uncertainty have forced the industry to tighten its collective belt.

Indeed, E3 2012 was characterized as much by what wasn’t there – nextgeneration consoles and a number of major companies – as by what was.

The most important players in the industry, Microsoft and Sony, said nothing of successors to their (respective) Xbox 360 and PlayStation 3 consoles. As a result, their press conferences were tinged with blah as they showcased “new hotnesses” for long-in-the-tooth gaming platforms.

Microsoft is still betting heavily on Kinect, the motion- and voiceinput peripheral that it launched in Q4 2010 with the not-insubstantial assistance of a $500-million marketing campaign. Kinect is a powerful technology that’s been adapted to a number of fascinating non-gaming uses – including keyhole surgery – but its application in games has been more miss than hit. Microsoft now seems to be falling back on the device’s voice-input potential more than motion-sensing, adding voice commands to sports games like “FIFA 13” and “Madden NFL 13.”

The IT giant’s strategy also hinges on Xbox SmartGlass, an app that interconnects mobile devices (tablets, smartphones) with home entertainment; new media partnerships with brands like Nike and major American sports leagues; and a new entry in its blockbuster Halo franchise.

Sony’s offering was even less substantial. The Japanese firm unveiled a PlayStation Move steering wheel peripheral, showcased titles for the Vita handheld device and enthused over a perfunctory update to its mobile-content strategy. It also pushed a number of triple-A games,

like “Assassin’s Creed 3,” “God of has been one of cautious optimism War Ascension” and, most spectacu- and muted excitement. larly, “Beyond: Two Souls,” a new The Wii U’s unique selling point title from Quantic Dream, the is its large, touchscreen-enabled “story-first” French developer controller, which has been updated behind 2010’s cinematic masterpiece since E3 2011 with better-spaced “Heavy Rain.” buttons and a few other quality-ofThe biggest surprise from Sony life changes. It was revealed that the was a peripheral called Wonder- Wii U supports two such controllers book, which aims to bring augment- (some had speculated that the limit ed reality to kids’ books. The ulti- would be one), but that adding a secmate in pop-up, so to speak. “Book ond controller drops a game’s frame of Spells” (pictured), a Harry Potter- rate by half. Unwelcome news, that. themed title, will be the first release.

Otherwise, the House that Mario The appearance of Wonderbook this Built spent most of its effort on softlate in the PS3’s lifespan is a little ware, announcing around 23 games worrying though – unless Sony plans for the Wii U. These include “Super to support it heavily now and on Mario Bros U,” “Wii Fit U,” “Piknext-generation hardware, then this min 3” and updated versions of could turn out to be 2012’s biggest “Batman: Arkham City” and “Mass Effect 3.” ● boondoggle.

Nintendo was the only company at E3 showcasing The Sony a new console: its Wii suc- Wonderbook cessor, the Wii U. Still, the console was officially unveiled last year and, in terms of technical performance, it is only on par with the PS3 and Xbox 360 – hardware released years ago. Thus far the response from industry observers

Ever navigated a vast sea filled with agitated pufferfish? Let us know: techeye.wbj@gmail.com

COURTESY OF SONY

E3 gets its game on, struggles to impress