WBJ #43 2011

Samsung is expanding its R&D activities in Poland

Foreign Minister Sikorski visited Libya to talk democracy and business

US children’s retailer Toys“R’’Us is coming to Poland

3

7

WWW.WBJ.PL

6

VOLUME 17, NUMBER 43 • OCT 31 – NOV 6, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE COURTESY OF GUARANA COMMUNICATIONS

Lokale Immobilia

Since 1994 . Poland’s only business weekly in English

A fading force?

Does the election to parliament of the ultra-liberal Palikot’s Movement mean Polish society is ready for change?

• Ferio mall • Silesia City Center • Luxury apartments 16-19

12-15

A Polish media empire Zygmunt Solorz-˚ak’s takeover of Polkomtel has the regulator’s green light 7

Certification centers 21

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Europe . . . . . . . . . . . . . . . . . . . . . . .5 Business . . . . . . . . . . . . . . . . . . . .6-7 Energy . . . . . . . . . . . . . . . . . . . . . . .9 Opinion & Analysis . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . .12-13 Tymochowicz Interview . . . . . . . .14 Biedroƒ Interview . . . . . . . . . . . . .15 Lokale Immobilia . . . . . . . . . .16-19 Markets . . . . . . . . . . . . . . . . . . . . .20 The List . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23 SHUTTERSTOCK

Debt deal reached Law and Justice ‘split’ But is it enough to bring the euro-zone crisis under control?

3, 10,11

PiS’s number-two suggests a radical solution for achieving electoral success 4

NEWS

www.wbj.pl

TP and Vivendi interested in TVN

Poland’s Ministry of Defense called off a tender for the purchase of combat trainer aircraft, as it ended unsuccessfully.

The contract put up for tender was worth z∏.1.5 billion. “You don’t need a Ferrari to learn how to drive,” said Deputy Defense Minister Marcin Idzik. A new tender will soon be launched, and its requirements are expected to be simpler and better tailored to the needs of the Polish Air Force.

Numbers in the News

€1 trillion

is the amount of the European Financial Stability Facility (EFSF) after EU leaders agreed to strengthen the bailout fund

50% was the level of Greek debt reduction negotiated with private banks at the EU summit last week

60,000 is the number of Poles who have emigrated to the United Kingdom since the beginning of 2011

Poland’s Institute of National Remembrance (IPN) has reopened an investigation into the crimes against humanity committed at the infamous Auschwitz concentration camp in Poland. Over one million people, mainly Jews, Poles, Roma and homosexuals, were killed at the camp between 1940 and 1945.

Poland originally launched investigations into crimes committed at Auschwitz in the 1970s, but closed them in the 1980s without any indictments being made. During this period Poland was under communist rule and therefore had limited contact with West German authorities, making joint investigations difficult.

The IPN is a research body charged with investigating Nazi and communist crimes

committed in Poland. ¸ukasz Gramza, a prosecutor at the IPN’s investigative service, the Commission for the Prosecution of Crimes against the Polish Nation, said the aim of the reopened investigation is to establish exactly how the camp operated, who committed what crimes, the circumstances under which lives were taken, the number of victims and the nature of the medical experiments that were carried out there.

“As a result of [this] we will be able to bring the perpetrators to justice,” he told WBJ. He also said that the IPN now has access to over 300 volumes of investigative records and can rely on the support of national and international institutions.

Efraim Zuroff, a historian

who has helped bring Nazis indicted for war crimes to trial, praised Poland’s reopening of the investigation, telling the Associated Press that it “could have tremendous implications.”

However, Mr Zuroff also noted that despite Poland being the country with the highest number of ongoing investigations into Nazi crimes, most have never resulted in prosecution.

“Poland’s Institute of National Remembrance excels in opening up investigations. They don’t excel in prosecuting Nazi war criminals,” he said.

Construction on Auschwitz was started in 1940 by forces of the German Third Reich.

Soviet troops liberated the camp on January 27, 1945.

Izabela Depczyk, Remi Adekoya

On WBJ.pl Battle of Britain pilot dies Brigadier General Tadeusz Sawicz, the last surviving Polish pilot among the 144 who fought in the Battle of Britain, died on October 19, 2011 in Toronto, Canada. He was 97. After finishing high school, Mr Sawicz enlisted in the army in 1933. A year later, he joined the Aviation Cadet School in D´blin and served for three years in an air regiment in Warsaw.

Renewed emigration flow to UK After a halt during the financial crisis, Poles are once again migrating into the EU in search of jobs.

The UK is especially popular, as well as the Netherlands, where the unemployment rate is just 4.5%. According to the British Office of National Statistics, 60,000 Poles emigrated to the UK in the first half of 2011. ●

All Saints’ Day Every year on All Saint’s Day, millions of Poles visit cemeteries across the country to light candles and put flowers on their loved ones’ graves. Log on to WBJ.pl for an in-depth look at this important holiday.

66 is the number of hotel beds in Poland per 10,000 inhabitants. A new report suggests Poland is dead last in the EU for availability of accommodation, far behind leader Cyprus, which has 1,057 beds per 10,000

Quote of the Week “Voters, like beautiful women, sometimes like to be seduced” President Bronis∏aw Komorowski while addressing students at the Adam Mickiewicz University in Poznaƒ last Friday.

Figures in focus Living arrangements Percentage of under-18s living with only one parent in 2008, selected EU27 countries

25 20 15

*Lowest in EU27 **Highest in EU27

10 5 0

UK Ire lan d La tvi a* *

Poland scraps z∏.1.5 billion jet tender

Auschwitz

COURTESY OF WIKIMEDIA COMMONS

Polish telecoms company TP and French media conglomerate Vivendi are in talks regarding a partnership to buy the 56 percent stake in media company TVN being sold by the ITI Group, worth about z∏.2.9 billion.

Maciej Witucki, the head of TP, said that the company is not interested in TVN’s TV business, but could partner with Vivendi in terms of TV distribution, particularly with regard to its “n” satellite arm, Parkiet reported.

IN THE SPOTLIGHT

OCTOBER 31 – NOVEMBER 6, 2011

Gr ee ce Ro * ma nia Sp ain Cy pr us EU Pol 27 an d Cz ave ec rag hR e ep ub lic Ge rm an y Sw ed en

2

DATELINE

November 7-9 Event:

9-10 Event:

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

Location: Hotel Marriott, Warsaw kongreskadry.pl

Company index 14-25 BELGIAN DAYS Event:

RETAIL BANKING CONGRESS This event aims to provide a platform of discussion and experience-sharing for top-level managers involved in the financial services industry in the CEE region, with a view to finding solutions to problems encountered in contemporary retail banking.

Location: Hotel Marriott, Warsaw gab.com.pl MAPIC is a unique exhibition and conference dedicated to retail real estate. It brings together leaders from the retail real estate sector to explore the most innovative projects, forge partnerships, close deals, and stay on top of trends and innovation.

Location: Cannes, France mipim.com/mapic/

The Belgian Business Chamber and economic representatives from the regions of Flanders, Wallonia and Brussels are organizing Belgian Days in Warsaw, Gdaƒsk and Poznaƒ for the 13th time. This year’s motto for the Belgian Days is “Discover Enterprising Belgium.” The project is under the honorary patronage of the Ambassador of the Kingdom of Belgium. belgium.pl

Amazon ........................................7 Immofinanz Group ....................16 Polnord ......................................18 Apple ............................................7 InPost ..........................................7 Raiffeisen Evolution ..................17 Astellas Pharma ........................16 Inpr ............................................19 Blackstone Real Estate ............16 Invest Plan ..................................8

Raiffeisen Evolution Project Development ..............................17

BRE Securities ............................9 ITI Group ......................................2 Rank Progress ..........................16 BZ WBK ........................................6 JEMS Architekci ........................16 BZ WBK Brokerage House ..........9 Jeronimo Martins ......................12

RED Development......................18

CA Immo ....................................16 Jones Lang LaSalle ..................17 Samsung ......................................6 Castorama..................................17 KGHM ..........................................7 Skanska......................................17 CCC ............................................17 La Mania ....................................16 Smyk ............................................7 Colliers International ................17 LiuGong Machinery....................14 Souter Holdings Poland ............12

18-20 PROFESSIONAL INVESTOR CONFERENCE Event:

14-16 MAPIC Event:

Source: Eurostat

This conference calls itself the secondlargest of its kind in Poland, after the “Wall Street” conference. It features workshops, presentations and discussions on investing for individual investors.

Location: Ko∏obrzeg sii.org.pl

18-20 BOATSHOW Event:

This fair provides an opportunity for manufacturers and distributors of all different types of firms involved in the boating industry to meet, form partnerships and do deals.

Location: Poznaƒ boatshow.pl

Cyfrowy Polsat ............................7 Lytro............................................23

Spartan Capital Holdings ............7

Deloitte ........................................6 ¸meat-¸uków ............................14 T-Mobile ......................................7 DI BRE Bank ................................7 Orange..........................................7 Tauron ..........................................9 Dom Maklerski BDM ..................7 Orco Property Poland ................19 Eko-gips ......................................8 Orlen ............................................7

Telekomunikacja Polska........2, 12

Eko-Park ....................................19 Panorama Eco-Invest ..................8 Tetra Pak ....................................16 Emperia........................................6 peter nielsen & partners ............6 Tommy Hilfiger ..........................16 Empik ........................................17 PGE ..............................................7 Toys“R”Us ....................................7 Euro Styl ....................................17 PGNiG ..........................................9 TR Studios ..................................23 Eurocash ......................................6 PKN Orlen ....................................9

Tradis Group ................................6

European Investment Bank ........9 PKO BP ......................................18 UBM............................................16 Gomez Studio ..............................8 Plus ..............................................7 GTC ............................................18 Poczta Polska ..............................7 H&M ....................................16, 17 Poland Dernet Enterprises Ltd ..8

Vivendi ..........................................2 Warsaw Stock Exchange ......7, 18

Harpers Shoes ..........................16 Polish National Rail ....................3 X-Trade Brokers ........................20 Huta Stalowa Wola ....................14 Polkomtel ....................................7 Yareal ..........................................16

OCTOBER 31 – NOVEMBER 6, 2011

NEWS

www.wbj.pl

Euro-zone crisis

Mixed reaction to euro zone’s anti-crisis package Euro-zone leaders last week reached agreement on a deal aimed at solving the euro-zone debt crisis. Following lengthy talks in Brussels last Wednesday, leaders of the 17 eurozone nations agreed on a threepronged approach to tackling the issues facing the bloc.

As part of the deal, private banks holding Greek government bonds have agreed to accept a write-down of 50 percent. The move is expected to reduce Greece’s debt to 120 percent of its GDP by 2020, a significant reduction from the expected 180 percent it would have grown to under current conditions.

Leaders also agreed on an expansion of the euro zone’s bailout fund, the European Financial Stability Facility (EFSF), from €440 billion to €1 trillion. European banks, meanwhile, will be required to raise about €106 billion in new capital by June 2012. It is hoped this will protect banks from potential losses resulting from government defaults.

COURTESY OF THE EUROPEAN COMMISSION

Markets rallied, but some analysts say the measures will not be enough to restore investor confidence

José Manuel Barroso said the deal proves Europe can unite in difficult times Positive reaction A number of major EU politicians reacted positively to the news that an agreement had been reached.

French President Nicolas Sarkozy told reporters, “We have reached an agreement which I believe lets us give a credible, ambitious and overall response to the Greek crisis.”

José Manuel Barroso, president of the European Commission, said Europe was now nearer to resolving its financial and economic crisis. “We are showing that we can unite in the most difficult of times,” he said.

“The package that we have agreed tonight, a comprehensive package, confirms that Europe will do what it takes to safeguard financial stability,” he added.

However, he cautioned, “I’ve said it before and I’ll say it again, this is a marathon, not a sprint.”

Greek Prime Minister George Papandreou also praised the deal, both in terms of its potential impact on his own indebted nation as well as on the region as a whole. “We can claim that a new day has come for Greece, and not only

for Greece but also for Europe.”

Not enough?

Some analysts, however, have said that the measures are insufficient to really get to grips with the crisis and restore investor confidence.

Harvinder Sian, a strategist at RBS in London, wrote in an investor report that the EFSF will be too small to offer help to any country that might need it for a protracted length of time, Bloomberg reported.

Mr Sian added that a promise by governments to help

banks regain access to longterm bond market funding could add to their debt burdens. He also stated that if the EFSF were to continue buying Italian and Spanish bonds at the same rate as the European Central Bank, a beefed-up bailout fund would still only allow it to continue to purchase bonds for two years – and then only if no other country needed help from the EFSF. “This is no doubt a large sum but too small in our view to restore confidence for good,” he wrote, adding that there were “no convincing arguments in this new policy response to suggest that sovereign bond spreads in the euro area will tighten meaningfully.”

Economists at BZ WBK pointed out that many of the details of the agreement still had to be hammered out.

“The size of the enhanced fund is still only a rough estimate. The details … are still opaque,” they wrote in a research note, adding that markets would continue to react sensitively to news related to those details.

Nevertheless, immediately following the summit, stocks around the globe rallied, with major world indices recording sharp gains.

David Ingham

Libya

Foreign minister sets stage for Polish influence in a free Libya

Polish Foreign Minister Rados∏aw Sikorski reiterated Poland’s desire to aid Libya in its democratic transition as well as its hope that Polish firms will secure a role in rebuilding efforts during a working visit to Libya last week.

“Today, all of Libya is free,” Mr Sikorski said shortly after he arrived. He promised to share Poland’s experiences of making the transition from dictatorship to democracy.

“We did it 20 years ago. We succeeded and so we are ready to share with you the things we did right and the mistakes we made,” Mr Sikorski added.

The visit was the first by a

COURTESY OF THE MINISTRY OF FOREIGN AFFAIRS

Poland wants to share its experience in democratic transition, as well as ensure possibly lucrative contracts for Polish firms

Rados∏aw Sikorski (left) met with Mustafa Abdul Jalil, chairman of Libya’s National Transitional Council foreign politician following the transitional authorities’ announcement of the final “liberation of Libya” on 23 October 2011, just days after former Libyan dictator Muammar Gaddafi was shot

dead. During the trip, Mr Sikorski met with Mustafa Abdul Jalil, chairman of Libya’s National Transitional Council, and several other high-level representatives.

“The aim of the visit is to

assure the Libyan hosts of Poland’s support for their efforts to build a new, democratic Libya, and to discuss across-the-board development of Polish-Libyan bilateral relations in the new political con-

text,” Ministry of Foreign Affairs spokesperson Marcin Bosacki wrote in a statement.

Mr Sikorski was accompanied by a delegation of Polish business representatives from various fields. Regarding the possibility of potential business opportunities for Polish firms, Mr Sikorski said, “I am very happy that I got to ensure that contracts for Polish companies will be respected, that Poland enjoys a good reputation and for Polish companies [there] will be plenty to do in rebuilding Libya.”

Following Mr Sikorski’s visit, Mr Abdul Jalil urged NATO to continue its military operations, in order to defeat those supporters of Muammar Gaddafi who still remain active in the country.

On Thursday, however, the UN Security Council voted to end military operations in David Ingham Libya.

3

S&P to upgrade Poland?

Ratings agency Standard & Poor’s has announced that it will consider upgrading Poland’s credit rating if the government takes steps to stop the increase of public debt. Currently, Standard & Poor’s rating of Poland is A-. The agency views the Polish economy as having good growth prospects in the short and medium term, and believes Poland is less dependent on exports than other countries in the region.

This enables the country to rely more on its domestic market to stimulate growth.

Luxembourg on top in FDI Companies registered in Luxembourg accounted for the highest amount of foreign direct investment into Poland in 2010, according to data from the National Bank of Poland. Companies from Luxembourg invested a total of €1.9 billion in FDI in Poland last year.

Germany and Italy were in second and third place respectively, while Cyprus came in fourth.

Warsaw Central renovations Renovations at the Warsaw Central railway station were first estimated to cost a total of z∏.27 million, but are now expected to reach almost four times that amount, at z∏.100 million. “This includes new escalators, or putting in new leakproof seals, that were not included in the initial estimates,” said Paulina Jankowska, spokesperson for Polish State Railways (PKP).

Elite officers fired for guarding Paris Hilton Three Polish counterterrorism officers are due to lose their jobs after failing to receive authorization to serve as bodyguards for Paris Hilton during her visit to Poland in October. Ms Hilton was in Poland for the grand opening of an extension of the Silesia City Center mall.●

4

NEWS

www.wbj.pl

Law and Justice

OCTOBER 31 – NOVEMBER 6, 2011

Civil unions

PiS leaders furious at Liberal parties propose bill proposal to split party to allow for same-sex unions Two of Poland’s smaller opposition parties are working together on a new bill to legalize civil unions between homosexuals

Mr Ziobro is in the hot seat nately crossed the line, talking about the possibility of forming another party. That is unacceptable,” PiS’s Ryszard Czarnecki told reporters.

Mr Ziobro later denied that he was calling for PiS to split up.

He also emphasized that his words should not be interpreted as a call to replace PiS leader Jaros∏aw Kaczyƒski.

Nevertheless, PiS has announced that Mr Ziobro’s comments would be investigated by a party disciplinary committee.

“Zbigniew Ziobro is putting forward the prospect of a break-up on the right. This is a

very serious political mistake because it weakens the party which he helped co-create,” said Mariusz B∏aszczak, the party’s parliamentary caucus leader.

Mr B∏aszczak also suggested that Mr Ziobro should face “consequences” for his statements.

PiS’s leader Jaros∏aw Kaczyƒski has not yet commented publicly on the issue, although he reportedly refused to let Mr Ziobro address party members at a meeting held after the deputy leader’s controversial comments.

Remi Adekoya

Two liberal opposition parties in Poland’s parliament are working together on a bill that would sanction civil unions for both homosexual and heterosexual couples. The Democratic Left Alliance (SLD) and Palikot’s Movement’ (RP) announced the initiative at a press conference last week, saying they would submit a bill to parliament by December.

Last summer, a bill regarding the same issue was submitted by SLD. The proposal would have allowed couples to posses common property, be taxed jointly and to refuse to testify against a partner. It also would have given an individual the right to bury a dead partner, inherit their property and seek a dependent’s pension.

However, Poland’s Supreme Court questioned whether the bill was constitutional.

Poland’s constitution contains a clause saying, “Marriage, which is a relationship between a man

and a woman [is] protected under the Constitution of Poland.”

“We will ask the authors of the previous bill to prepare, on the basis of the old bill, a new civil union bill, taking into consideration all opinions and especially that of the Supreme Court,” said Ryszard Kalisz, deputy leader of SLD’s parliamentary caucus.

Whether such a bill could pass parliament is still open to question. SLD and RP together have 67 votes; they need 231. It is unlikely the conservative Law and Justice or the Polish People’s Party would support it.

The bill would therefore need the backing of a majority of PO MPs in order for it to pass.

Despite Prime Minister Donald Tusk promising to take up the issue during the election campaign, analysts say PO support of the bill is unlikely to materialize.

“It all depends on the final draft of the bill, but even if there is a compromise it will be very hard to get PO MPs to support it. They will fear accusations of ushering in gay marriage through the back door,” said Sergiuz Trzeciak, an analyst at Collegium Civitas.

Remi Adekoya

COURTESY OF WIKIMEDIA COMMONS

Zbigniew Ziobro, former justice minister and current deputy leader of Law and Justice (PiS), has invoked the ire of some in his party following an interview in which he suggested that it may be best for PiS if it were split into two entities.

“Either PiS becomes a party that will be capable of ruling on its own or it will be necessary to build two political groupings – a centrist one and a nationalist one – to woo both types of voters and then build a coalition,” Mr Ziobro, who is a member of the European Parliament, said in an interview with Nasz Dziennik.

He added that the party had just lost its sixth election in a row and that “without change in PiS, we will continue to lose.”

The words were widely interpreted as a call for the break-up of PiS, if only for tactical reasons.

“Zbigniew Ziobro unfortu-

COURTESY OF PIS

Jaros∏aw Kaczyƒski has remained unusually quiet about some controversial comments from Zbigniew Ziobro

Mr Kalisz promised that the new bill will take the Supreme Court’s objections into account

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.385

❏

OPTION 2

WBJ Print

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

In Europe: €270

OPTION 3

Outside Europe: €340

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 2011 (zł.78 value) and Book of Lists 2011 (zł.100 value).

In Poland: zł.628

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus receive Investing in Poland 2011 (zł.78 value) and Book of Lists 2011 (zł.100 value).

In Poland: zł.500

❏

In Europe: €300

Outside Europe: €370

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

EUROPE

OCTOBER 31 – NOVEMBER 6, 2011

European Union

A presidency overshadowed

Finance Minister Jacek Rostowski caused a stir with his “war” comments Behind the scenes On less-visible fronts, Poland has apparently been earning points in the European capital.

“A presidency always does vast amounts of things that go unnoticed. I would say 90 percent of the management of a presidency is administrative, which is not sexy or even visible. Here I have heard that Poland is doing a great job,” said Mr Emmanouilidis.

Nevertheless, he believes few in Brussels share his personal enthusiasm for Poland.

The situation is changing slowly, he said, but “many people in Brussels make the mistake of not appreciating the country or its potential.”

Knowledge regarding Polish domestic politics is very limited, he said, and the historic re-election of Prime Minister Donald Tusk’s relatively cosmopolitan Civic Platform (PO) party, as well as the surprise win of the ultra-liberal Palikot’s Movement (RP), has yet to alter perceptions of the country in the eyes of most Eurocrats.

Conflict of interest One element of this fall’s election campaign that did not go

COURTESY OF THE EUROPEAN PARLIAMENT

Poland kicked off its six-month turn at the head of the European Council on July 1 with the ambitious goal of “restoring hope” to the European Union, in the words of PM Donald Tusk. But the euro zone crisis, which many say is the biggest challenge the EU has faced to date, quickly eclipsed Polish priorities.

WBJ spoke to Janis Emmanouilidis, senior policy analyst at the European Policy Centre, a Brussels-based think tank, who agreed that the Polish presidency has so far been dominated by the euro crisis, and said he believes that this will likely continue to be the case. “Let’s assume [last week’s economic] summits are successful – there will still be a lot of work to do,” he said.

The fact that Poland is not yet a member of the euro zone “limits the core business that Poland can actually get done,” he added.

Poland has received some attention, but it hasn’t always been positive. Perhaps the most high-profile instance was when, in a speech before the European Parliament in mid-September, Polish Finance Minister Jacek Rostowski alluded to the possibility of war in Europe as a result of the current crisis.

“Mr Rostowski wanted to get his message across. He did, but some say it was overstated, and I agree,” said Mr Emmanouilidis. More generally however, Polish attempts to participate in the discussion are legitimate, as “a country that wants to join the euro zone should have a say in changing the rules,” he said.

COURTESY OF THE EUROPEAN PARLIAMENT

Four months into its EU presidency, perceptions of Poland in Brussels have not changed significantly, according to European policy analyst Janis Emmanouilidis

Budget Commissioner Janusz Lewandowski was criticized for taking part in PO’s election campaign

unnoticed in Brussels was the role of Budget Commissioner Janusz Lewandowski, a Pole, who appeared in one of PO’s election campaign videos. Mr Lewandowski spoke about the “billions of z∏oty” PO could secure for Poland in the 20142020 budget, for which negotiations are ongoing.

Although EC President José Manuel Barroso eventually said Mr Lewandowski’s comments were “reconcilable” with the EC’s code of conduct, Mr Emmanouilidis suggests it was an error. “Was the price justified? It didn’t help Mr Tusk’s campaign, but it hurt the image of the presidency,” he commented.

The next budget and multilateral framework is a very sensitive issue right now in Brussels, explained Mr Emmanouilidis. Comparatively, the issue of climate change, which many feared could prove the Polish presidency’s bugbear given the country’s traditionally conservative stance on the issue, has lost some of its urgency.

Accordingly, Mr Emmanouilidis said he was not overly concerned about Poland’s capacity to coordinate a common EU position at the upcoming UN climate conference in Durban, South Africa, or about the possibility that it would be a determining factor in the perception of its achievements at the head of the EU Council.

“We have seen a lot of nice general declarations on the environment in the past and we are probably going to see something similar. I am trying to be diplomatic, but the issue of climate change is is not at the top of the agenda anymore,” he said.

Alice Trudelle

www.wbj.pl

5

6

BUSINESS

www.wbj.pl

OCTOBER 31 – NOVEMBER 6, 2011

Mergers & acquisitions

Eurocash gets approval for Tradis takeover Poland’s anti-monopoly office, UOKiK, has given its approval for FMCG wholesaler Eurocash to acquire trading group Emperia’s distribution arm, Tradis Group. Sticking to its earlier decision, however, Emperia says the deal is off.

The two companies have been in deadlock over the deal ever since Eurocash failed to make the z∏.926 million payment for Tradis Group by the agreed July 15 deadline. Euro-

cash had stated that it could not make payment because it had not received clearance from the Office of Competition and Consumer Protection (UOKiK), leading Emperia to call the deal off.

The president of Emperia, Artur Kawa, said in a statement that “UOKiK’s decision does not in any way affect Emperia’s strategy … we want to emphasize that the investment agreement with Eurocash no longer applies and the clearance decision given to Eurocash is of no significance to us.”

“After choosing an investor for our retail business, we will focus on further developing

the distribution business, so as to be the undisputed leader in FMCG distribution service in Poland,” Mr Kawa added.

When contacted by WBJ, representatives at Emperia said, quoting Mr Kawa, that the firm intends to continue to seek z∏.200 million in damages against Eurocash for the latter firm’s failure to make a timely payment for Tradis Group.

UOKiK’s approval is conditional and requires Eurocash to dispose of the title to 12 specified warehouses within 12 months of taking control of the Tradis Group, Eurocash wrote in a statement.

COURTESY OF WIKIMEDIA COMMONS

Emperia says its decision to call off the z∏.926 million sale of its holding, Tradis Group, still stands

Ella Pa∏ka

Research & development

Samsung opens new R&D center in Poznaƒ

EUROCASH

The firm wants to continue expanding, with several more branches in Poland over the next few years

Eurocash got the green light to buy Tradis Group – but Emperia says the deal is off

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

Companies will not have to publish financial reports in Monitor Polski B

Higher remuneration for work during the change from daylight savings time

The Ministry of Economy is working on an amendment to the Act on Accountancy, under which the entities that until now have had their financial reports published in Monitor Polski B will be released from the obligation. Monitor Polski B is the Official Gazette of the Republic of Poland and is a publication of the Prime Minister of Poland.

If the amendment is made, entities will only have to submit financial reports to the National Court Register [KRS] and have the relevant information published in the Judicial and Economic Monitor (Monitor Sàdowy i Gospodarczy).

The proposed legislation may mean that the entities in question will be able to save up to several thousand z∏oty annually.

Presently, the legislation is only in its draft stage. It will probably be sent to the Sejm along with other drafts from the Ministry of Economy aimed at the removal of administrative barriers.

Those employees who worked during the night of October 29, 2011 will receive additional payment for overtime work. Due to the change from daylight savings time to standard time, the employees worked nine hours that night instead of eight, meaning their working hours exceeded the normal limit.

Act on Consumer Credit On December 12, 2011, the Act on Consumer Credit will come into force. The act defines the rules relating to the conclusion of contracts for consumer credit. It also sets out the obligations on lenders and credit agents regarding information they should give a borrower prior to the conclusion of a contract for consumer credit. The act also defines the consequences of failing to fulfill obligations set by the lender. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Samsung Electronics Polska has expanded its research and development activities in Poland with a new R&D center in Poznaƒ. The new branch, opened last week, will complement its already existing Warsaw R&D center. The Poznaƒ division will be responsible for developing software for digital televisions, including for the Samsung Smart TV. It will also be responsible for creating cellular phone applications.

The Warsaw R&D center was launched in 2000, and employs over 800 people.

According to the company, that number is set to surpass 1,000 within the next few months. Samsung is planning to open several more branches in Polish cities.

“Samsung decided to expand in Poland thanks to the high qualifications of Polish software engineers … proven by their many successfully completed projects,” Adam RoÊ, the head of Samsung Electronics Poland R&D Center in Warsaw, told WBJ. The company says that since the launch of the R&D center in Warsaw, hundreds of different models of phones and televisions with Polish-developed programming have been introduced into the European market.

Magdalena Burnat-Mikosz, partner and leader of R&D

and government incentives in Central Europe at Deloitte said that Poland is a good place for hi-tech companies to invest, since “Poland’s competitive advantages outweigh concerns regarding the effects of the economic crisis.”

Ms Burnat-Mikosz also added that the “availability of public aid in the form of subsidies” is an incentive for companies, like Samsung, to expand.

Samsung’s investment in growth is further evidence of growing optimism in the sector. In a recent report on innovative technology companies, Deloitte found that 58 percent of the fastest-growing brands are expecting revenue growth. That represents a 4 percentage-point rise in optimism since last year’s survey.

Izabela Depczyk

Economic indicators

Retail sales: strong growth in September The result was well above expectations Polish retail sales growth increased strongly in September, confounding economists who expected to see evidence that the economy is starting to slow.

Retail sales accelerated 11.4 percent year-on-year on the back of strong levels of private consumption.

The market had expected an increase of around 10 percent, following growth of 11.3

percent in August.

Growth in the sale of fuel was strongest in September, accelerating 20.9 percent y/y versus 17.1 percent in August.

However, automobile sales growth slowed to 0.0 percent, in line with expectations.

“September’s data on retail sales suggests that private consumption in Q3 was pretty strong. That was fueled by still high wage growth and a pretty visible increase of disposable income,” Bank Zachodni WBK analysts wrote in a mar-

ket report.

Nevertheless, with the Polish economy expected to slow down, BZ WBK forecasts that the pace of growth will ease.

“Coming quarters will bring some deceleration of retail sales due to weakening of positive tendencies on the labor market and worries over the economic outlook. Today’s data on retail sales does not prompt us to change our scenario of economic growth in coming quarters,” the bank’s analysts said.

Gareth Price

BUSINESS

OCTOBER 31 – NOVEMBER 6, 2011

www.wbj.pl

Telecoms

Children’s retail

Regulator clears Solorz˚ak’s Polkomtel takeover

Toys“R”Us to open its first store in Poland

Poland’s telecoms market should become more competitive as a result of Zygmunt Solorz-˚ak’s z∏.15 billion buyout of the company

MATEUSZ GO∏ÀB/WBJ

The takeover of mobile telephone giant Polkomtel by one of Poland’s wealthiest businessmen, Zygmunt Solorz-˚ak, can now go through.

Mr Solorz-˚ak three months ago declared his intention to buy the operator of the Plus mobile phone network for an estimated z∏.15.1 billion via his firm Spartan Capital Holdings. Poland’s competition watchdog, UOKiK, has now approved the deal.

When it was put up for sale in June 2010, Polkomtel attracted the interest of several international players. The firm, majority controlled by state-owned firms including oil refiner Orlen, copper producer KGHM, and utility PGE, will remain in Polish hands.

The takeover will add to Mr Solorz-˚ak’s collection of

rowski, head of the research department at Dom Maklerski BDM, a brokerage house.

This will also mean serious competition for other major players like Orange, T-Mobile and P4.

According to Michal Marczak, director of the analysis department at DI BRE Bank, the transaction makes Mr Solorz-˚ak’s empire a big player on the pan-European market, and unique on the Polish market.

“Mr Solorz-˚ak controls the wavelengths on which he operates, he will have an advantage over the other providers,” said Mr Marczak.

UOKiK ruled that the transaction will not result in a significant restriction of competition in the Polish market, although some of Polkomtel’s competitors disagree.

Analysts, for their part, agree that the main effect on the market should be to increase the number, quality and value of services on offer, rather than a drop in prices.

Polkomtel remains in Polish hands media and telecoms companies, which include television broadcaster Cyfrowy Polsat, and will enable him to go ahead with his stated objective of creating a super-fast 4G LTE network across Poland.

Spartan Capital Holdings possesses the technology nec-

essary to achieve that goal, while Polkomtel has the infrastructure and client base, the regulator said.

“The transaction is important not only for the mobile market but also for the broader spectrum of entertainment services,” said Maciek Bob-

Alice Trudelle, Izabela Depczyk

E-commerce

The firm is reportedly in talks with potential partners and could move into the Polish market in March or April American e-commerce giant Amazon could enter the Polish market as early as March or April 2012, Polish daily Dziennik Gazeta Prawna reported, without citing specific sources.

Amazon, which is the world’s largest online retailer, is currently in talks aimed at establishing cooperation with Polish partners, including InPost and Poczta Polska, the newspaper wrote.

InPost, which belongs to the Integer.pl group, is the largest independent operator of nationwide mail in Poland, and has been listed on the Warsaw Stock Exchange since 2007. Poczta Polska is Poland’s state postal service.

When contacted by WBJ, both Poczta Polska and Amazon declined to comment.

The entry of Seattle-based Amazon into the Polish market would likely pose a threat

to the positions of major local book and media retailers, including current market leaders Empik and Merlin.pl.

However, Monika Marianowicz, spokesperson for Empik, told WBJ, “We have no complexes in relation to Amazon – we have years of experience and knowledge of the Polish market, we cooperate with the majority of Polish suppliers, therefore our offer is very broad when it comes to Polish products.”

“Amazon will find it difficult to match our Amazon recently launched its Polish knowledge, Kindle Fire tablet responsiveness to customer needs and Amazon unveiled its Kinfast delivery of orders,” she dle Fire tablet in September, added.

Last week Amazon an- in a bid to compete with nounced that its third quarter Apple’s iPad tablet. Analysts net profit fell 73 percent quar- have suggested, however, that ter-on-quarter to $63 million. undercutting Apple in terms The company’s sales during of price could affect Amazon’s the third quarter rose 44 per- ability to remain profitable.

David Ingham cent y/y, but costs were higher.

COURTESY OF AMAZON

Amazon could enter Polish market next year

The company plans further expansion in Eastern Europe Renowned US children’s retailer Toys“R”Us announced last week that it plans to open its first store in Poland at the end of November in Warsaw.

“Toys“R”Us is one of the most iconic brands in the world and has always translated well to customers abroad. By leveraging our global position, we believe we can help grow the toy and juvenile market in Poland, while broadening our reach with both consumers and manufacturers across Europe,” said Jerry Storch, chairman and CEO of Toys“R”Us, in a statement.

Toys“R’’Us opened its corporate headquarters for Poland in August, and employs approximately 25 people who work in merchandising, marketing, human resources, store operations and finance.

“Our entry into Poland not only represents an exciting expansion for the company in Europe, but also provides a

7

potential gateway to other Eastern European countries,” said Antonio Urcelay, president for Toys“R”Us Europe.

“Poland’s dynamic market development and family-oriented population make it an ideal location for our further growth, and we are proud to introduce our brand to the nation’s consumers.”

The new Toys“R’’Us store in Warsaw will be located in the Blue City shopping center. It will feature a small Babies“R’’Us section, keeping in line with the company’s integrated store strategy in other locations.

Toys“R’’Us will face strong competition from the current market leader, Smyk – which also has an outlet in Blue City.

Smyk currently has 67 stores throughout the country and plans to expand.

Toys“R’’Us operates 1,600 stores in 36 countries. It opened its first international location in 1984 with wholly owned subsidiaries stores in Canada and a licensed store in Singapore.

Veronika Joy

8

OCTOBER 31 – NOVEMBER 6, 2011

www.wbj.pl

Advertorial feature

Wille nad Zalewem

Approximately 20 kilometers from the First Warsaw Golf & Country Club, near the picturesque Zegrze Reservoir, in the village of Rajszewo, new luxury villas are being constructed.

The location is ideal not only for nature lovers but for avid sailors and golfing enthusiasts alike. The planned luxury housing community will be 20 minutes from Warsaw by car and would make for an exquisite residence for those who work in the hectic capital during the day, and who want to experience comfort and silence in the area’s natural and soothing conditions. Whether one wishes to relax by the marina or enjoy a round of golf, residents can take advantage of all that the villa community has to offer. Could you ask for anything more?

The estates, named “Wille nad Zalewem,” include 39 comfortable single-family dwellings, and are located on a plot of forested area of over 1,000 sqm. Each building will be built in two stages, the first of which is to be completed later this year. The developer is currently working on four different design proposals which will vary in size from 215 sqm to 340 sqm. Prices will start at z∏.1.5 million. During the first phase of the project, the Tramontana villas are to be constructed, named after the cool winds that run through the west coast of Italy and Corsica.

The architecture of the buildings draws clear inspiration from Mediterranean culture, while the large facades, taking advantage of ample window space, invite nature

right inside your home. The inner axis of the houses is lined with old trees. And for each villa, designers have incorporated the natural terrain in order to optimize sun exposure, garden size and to ensure optimal privacy.

The estate will be a gated community fully protected by a security team. The area will be fenced all around and monitored, with a reception located right at the entrance. In addition, alarm systems will be introduced for each of the villas. Right near the entrance of the estates, located on ul.

Wojska Polskiego (vis-a-vis the entry onto Port Pilawa) there will be a service building with an estimated area of 250 square meters, allowing each resident to have a parking lot near their home. Here, there

are also plans for a local shop, cafeteria and bakery. On the first floor of the premises there is potential for office space and alternatively, for two separate apartments.

Wille nad Zalewem will be implemented by Plan Invest Group, through cooperation with Poland Dernet Enterprises Ltd. Currently, Invest Plan is a building group in Poland which specializes in residential and commercial real estate. In addition to the Wille nad Zalewem project, the company plans to complete preparatory work for a housing estate in the town of O˝arów Mazowiecki, as well as a project in Kraków.

Gomez Studio which designed Wille nad Zalewem is an architectural studio operating under the leadership of Hernan Gomez. Several years ago the

39 exclusive homes from 215 to 451 sqm Quick and easy travel to and from Warsaw Big, forested plots Close to Zegrze Reservoir (across from Port Pilawa and Port Jachtowy Niepor´t)

Gomez Studio designed the award-winning family house of the year. Clearly, the two projects echo each other in their quality and style.

The general contractor behind the construction is Visbauen, founded on the joint cooperation of Panorama EcoInvest and Eko-gips, which have worked in the construction market for several years.

Together with the villa community, there will also be an entire infrastructure which will include sailing shops, a port tavern, and even a mini zoo. An area for sports, both for children and adolescents, is planned. And of course, the golf course can be reached within 20 minutes. In such a well-located community, sailing and golf can become an everyday pleasure. ●

OCTOBER 31 – NOVEMBER 6, 2011

ENERGY

www.wbj.pl

9

Power plants

Shale gas

Test wells could cost Tauron set to land two Orlen z∏.500 million major loans from EIB safest technologies,” he said in a statement.

But those technologies are more expensive in Poland than they are across the Atlantic.

Pawe∏ Burzyƒski, an equity analyst at BZ WBK Brokerage House, told WBJ that the higher costs are due to a difference in the environment, a smaller area available for drilling, and limited access to equipment.

“There are just over 80 drills in Europe, compared to 1,500 drills in the US alone,” he said.

Izabela Depczyk

The first drilling could cost as much as z∏.30 million

The utility will receive a total of z∏.510 million for plant upgrades Poland’s second-largest utility, Tauron, will receive two loans totaling z∏.510 million from the European Investment Bank (EIB) to upgrade two of its electricity plants in southern Poland.

The loans, which will finance projects to increase efficiency and reduce CO2 emissions at existing installations, will deliver “measurable” results in terms of cost, according to Krzysztof Zawadzki, vice president of Tauron’s management board. The company intends to apply for similar funds in the future, Mr Zawadzki added.

Tauron has already partnered with gas giant PGNiG for a z∏.700 million loan from the European Bank for Reconstruction and Development (EBRD) to build a new joint gas- and biomass-fired power unit at the site of the existing coal-fired Stalowa Wola power plant in southern Poland.

From the EIB loan, z∏.300

COURTESY OF TAURON

PKN Orlen, Poland’s largest oil refiner, plans to drill six shale gas test wells in the country through 2013, the cost of which could reach as high as z∏.500 million, company officials told reporters last week.

Orlen revealed its plans after inaugurating its first shale gas exploration site in Syczyn, in eastern Poland.

The company said that seismic surveys in the area, “yielded promising results.”

According to analysts, the cost of the first drilling could be as much as z∏.30 million.

Nevertheless, the extent of Poland’s shale gas reserves has yet to be proven, and some might balk at the cost of the investment. So is the amount that Orlen is planning to spend really worth the risk?

Kamil Kliszcz, an analyst at BRE Securities, said that Orlen shareholders need not be concerned. “Taking risks

is an inseparable part of the shale exploration business, and in this case the likely profit outweighs the potential loss,” he said.

Orlen’s president, Jacek Krawiec, admitted that production of gas from unconventional sources requires “immense amounts of money,” but looked to reassure investors.

“We are in the fortunate position that the test ground for shale gas production is across the Atlantic. We will use only the best, proven and

SHUTTERSTOCK

The company and industry analysts believe the risk is worth the potential reward

A z∏.210 million loan will support construction of a new boiler at Elektrownia Jaworzno III million will finance the replacement of the hard coal-fired combined heat and power unit at Tauron’s Bielsko-Bia∏a power plant with a “state-of-the-art high-efficiency” one, the EIB said in a statement.

The new unit will be 60-90 percent more efficient than the current unit.

Another z∏.210 million loan will support the construction and operation of a new biomass

boiler at Tauron’s Jaworzno III power plant, which will replace one of the existing coal-fired boilers, as well as the refurbishment of a steam turbine.

The EIB estimates it provided Poland with financing worth €94.5 million for renewable energy initiatives last year.

Poland currently produces over 90 percent of its electricity from coal-fired power plants.

Alice Trudelle

10

OPINION & ANALYSIS

www.wbj.pl

OCTOBER 31 – NOVEMBER 6, 2011

The Arab Spring and Europe’s chance Massimo D’Alema

T

he term “spring” may suggest a gentle awakening, but what is happening in North Africa and the Middle East is a true revolution, fomented by a new, digitally-savvy generation. The Arab upheavals are a by-product of the inexorable process of globalization in the 21st century, with almost instantaneous communications and increasing contact with the West transforming social and economic expectations.

Only by fully understanding the demands and grievances of these Arab revolutionaries will the West be able to give the region appropriate support – and this support is critical.

The Arab revolts have not been directed against the West – on the contrary, they have been fed by Western democratic principles and values – but they could yet produce a reactionary backlash.

Avoiding a backlash There are three preconditions that Europe and the United States must meet to ensure the prevention of such a scenario. First, Western countries’ support must be unambiguous. The Arab peoples must see clearly that the European Union and the US genuinely intend to sustain Arabs’ demands for democracy, freedom of speech, and economic opportunity.

In short, the region’s people must have evidence of the West’s interest

in establishing their right to human dignity and higher standards of living.

This means developing consistent policies and putting in place concrete measures aimed at favoring a peaceful transition to democracy. It also means isolating dictatorships across the region – even those governments traditionally considered to be Western allies and reliable economic and political partners.

the same offer to the Arab states, it has a moral duty and a political interest in presenting them with something comparable.

In practical terms, the EU needs to offer its Mediterranean partners major concessions on market access, financial aid, and migration policy. It must greatly reduce the technocratic aspects of its approach to external action, and at the same time make its relations with southern Mediter-

Firm resolve The second precondition for encouraging peaceful political development in the Arab world, which applies to the EU in particular, is to approach the Mediterranean region with the same resolve that was brought to Eastern Europe at the end of the Cold War. With the fall of the Berlin Wall and the collapse of the Soviet Union, the West identified common goals for countries facing the difficult post-communist transition to democracy and a market economy. The former Soviet satellites were offered the alluring prospect of joining the EU and NATO, which helped smooth the way for radical political and economic reforms. While the EU cannot make

the Arab world. The EU and its member states must commit themselves to finding a viable strategy to end a conflict that is now well into its seventh decade.

The Arab Spring offers an extraordinary opportunity in this regard.

Arab dictators have long lacked interest in real peace between Israel and the Palestinians, because the region’s precarious stability provided justification for their own undemocratic regimes.

Israel must now be well aware that new democratic governments will not tolerate a situation that was acceptable to authoritarian Arab regimes. Unlike their predecessors, the new Arab leaders will resolutely demand human rights for Palestinians under Israeli occupation be respected.

The Israeli government’s weak and myopic attitude toward the Arab spring is puzzling, not least because it has long been the region’s only true democracy. But US President Barack Obama’s administration seems to have understood the extent of the changes taking place in the Middle East. In May, Obama publicly stated that a return to negotiations on the basis of the pre-1967 borders is essential.

“What is happening in North Africa and the Middle East is a true revolution” ranean countries a top priority.

In institutional terms, this means replacing the ineffectual Union for the Mediterranean with a successor that demands fully democratic governance as a criterion for membership.

Palestinian-Israeli conflict The third precondition for Western credibility in the Mediterranean region is to take a genuine step towards resolving the PalestinianIsraeli conflict. Thus far, this has been the chief obstacle to stronger partnerships between Western countries and

Moving in the right direction The US, or President Obama at any rate, seems to be moving in the right direction, despite the round of applause that greeted Israeli Prime Minister Netanyahu’s uncompromising speech before the US Congress last spring. In contrast, the EU is once again showing itself to be irresolute and riven by internal divisions on both the Israeli-Palestinian peace process (or lack thereof) and the Arab upheavals.

The same incoherent approach has in the past undermined the EU’s efforts to project a credible foreign policy, ensuring that Europe is all too often perceived as feeble and inadequate. If Europe does not want to be marginalized in international affairs, it must quickly develop a strategic response to the Arab Spring, underpinned by a compelling vision of the future of the Middle East and North Africa.

Massimo D’Alema, Italy’s prime minister from 1998-2000, is President of the Foundation for European Progressive Studies and of the Fondazione Italianieuropei, and chairs the Italian Parliamentary Committee for the Security of the Republic.

Copyright: Project Syndicate / Europe’s World, 2011. project-syndicate.org europesworld.org

Europe’s dying bank model Gene Frieda

T

he good news for Europe is that it will not re-enact the dramatic collapse of Lehman Brothers. The European Central Bank’s unlimited ability to provide liquidity ensures that. But European leaders have yet to recognize that old bank business models are obsolete, and that reliance on private-sector leverage for balance-sheet repair of both sovereigns and banks is doomed to failure.

Two years into the crisis, the authorities have correctly identified four crucial problems – sovereign debt, bank capital, the risk of a Greek default, and deficient growth. But they have yet to agree on cause and effect. Understanding the obsolescence of most European banks’ business models is absolutely crucial to sorting that out.

In general, banks in the euro zone are outsized and highly leveraged.

They are also dependent on large quantities of wholesale debt to fund low-yielding assets. According to Barclays Capital, the 15 largest banks increased their returns on equity by 58 percent between 1998 and 2007, with 90 percent of the gains coming from higher leverage. Returns have since collapsed.

Declining confidence This model’s viability depends on large amounts of cheap leverage, sup-

ported by implicit government backing. While leverage normally becomes scarce and expensive during recessions, this time declining confidence in sovereign debt has also increased the cost of capital. Government borrowing costs, which anchor banks’ own funding, normally fall during recessions. But, as “risk-free” rates have risen six-fold in the past two years, the cost of bank equity and debt has often surged to levels at which investors balk. No one should be surprised, then, that they are reluctant to recapitalize – or, indeed, lend – to euro-zone banks.

Higher levels of capital are required for two main reasons. First, economic growth looks set to be much weaker than expected, meaning that capital buffers will need to be built. The European Banking Authority’s stress-test scenario from June looks more like the baseline scenario today. If traditional asset-quality considerations were the only problem buffeting euro-zone banks, recapitalization would restore investor confidence, debt markets would reopen, and banks would find raising capital much cheaper than it is now. That isn’t happening, because the problem is growth.

Second, with the demise of sovereign-debt equality, euro-zone banks will require higher capital-adequacy ratios to compensate for higher risk.

Banks in emerging markets tend to carry higher capital buffers for a similar reason. Just as business and credit cycles there tend to be more frequent and extreme, the real possibility of de facto currency crises in the euro zone, owing to higher sovereign borrowing costs and slow adjustment to shocks under fixed exchange rates, renders massive balance sheets unsupportable and thus obsolete.

Higher capital ratios are required today and, absent a credible sovereign safety net, in the future.

Public guarantees The latest agreement between European Union member states forces banks to raise core “Tier 1” capital levels to 9 percent, and will apparently require €108 billion of additional capital. But this figure is well below market expectations, as it is based on the Basel 2 rules, which have proven deficient in terms of risk weights and capital “quality” during the crisis.

With the sovereign ground quaking, reinforcing a 100-storey skyscraper of leverage with an additional floor or two of concrete will not bring back wary tenants. Unless confidence in sovereign debt within the euro zone can be restored, Europe’s banking skyscrapers will need to be cut in half.

What is needed is a controlled deleveraging that recognizes that

banks’ balance sheets have become too large to support, and that business models dependent on massive leverage are obsolete. Restoring confidence in euro-zone sovereign debt requires not only bank recapitalization, but also a credible, publiclyfunded financial safety net that is sufficient to protect the bloc’s larger

Once a leveraged EFSF fails, it should be clear that the euro zone will not last in its current form. The cause is excessive public and private indebtedness, coupled with the absence of an effective bailout mechanism; the effect is collapsing confidence in banks and sovereign debt.

“In general, banks in the euro zone are outsized and highly leveraged” states. Without that, no amount of capital will restore investors’ faith in euro-zone banks.

Reasons for failure Attempting to leverage with private money the new sovereign-debt bank known as the European Financial Stability Facility (EFSF) will fail for several reasons, but the simplest is that frightened private investors have already fled from European banks. After a massive private-sector boom-and-bust cycle, banks and households are deleveraging, and corporations are hoarding cash.

These are the players being asked to fund the EFSF.

Solution The solution is either a broad and deep debt restructuring that imposes losses on the private sector, or an ever more expensive bailout by taxpayers. The latter would be credible only if carried out by the ECB, at the expense of its mandate. Until this choice is made, no amount of additional capital will assuage the private sectors’ fears.

Gene Frieda is a global strategist for Moore Europe Capital Management.

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

OPINION & ANALYSIS

OCTOBER 31 – NOVEMBER 6, 2011

www.wbj.pl

11

European disunity halts solutions to crisis

E

uro-zone leaders gathered in a summit last Wednesday – the fourth in less than a week – out of which they had hoped to issue a firm line to address the financial crisis that has now reached its 21st month.

Meanwhile – and according to STRATFOR, more importantly – the German parliament voted overwhelmingly to bar any further expansion of European bailout structures that might require a greater contribution by Germany.

give the latter the ammunition to assist – if not directly underwrite – the broader European recovery effort.

lems facing Europe. On the questions about Greek debt and about bailouts for struggling sovereign states, the Europeans asserted that they had “reached agreement,” but put off any specific decisions until the next major summit.

Europe’s financial crisis is getting worse by the week. What started nearly two years ago with Greece’s sovereign debt crisis has since spread to a half dozen countries – even affecting European heavyweight France – as well as most of the continent’s major banks. What has not spread is the willingness of any particular European state to apply the necessary volume of resources to address the crisis. In fact, as the vote in the German parliament shows, even in the face of financial collapse there is little desire to take the steps necessary to save the structures of modern Europe.

Such reluctance is understandable; the price to stave off Europe’s crisis is remarkably high. STRATFOR estimates that an effective attempt to tackle the European crisis would require bailout resources of about €2 trillion. Simply arriving at the current level of less than €500 billion required a strenuous effort.

Well short Of the three, only the first goal solidified, and even then only in part. While late reports suggested that a voluntary write-down of 50 percent of the value of Greek bonds had been agreed to by bondholders, the exact details of the plan are not clear. Meanwhile, the Europeans agreed to increase banks’

“This was about as good of a political response as Europe could hope for given the circumstances” There were three specific topics on the summit’s agenda. First, a major bank repair effort whose approval, it is hoped, could turn Europe’s damaged financial institutions into a source of strength, rather than a weakness.

Second, a write-down of Greek debt – by at least half – that would give Greece’s economy a chance to recover, rather than drowning in interest payments. Finally, the summit was intended to seek an expansion of the euro-zone bailout fund that would

capital adequacy ratios – the amount of cash that banks must hold in reserve – up to 9 percent by June 2012, something that EU leaders estimated will cost about €100 billion.

Considering that by the EU’s own numbers reaching that degree of a security blanket would cost – conservatively – €200 billion without even pretending to address the banking sector’s other problems, the agreement fell well short of offering a comprehensive solution to the financial prob-

Political and economic

disunity The European Central Bank (ECB) does not have full authority over monetary policy and banks in a manner similar to the US Federal Reserve, the Bank of England or the Central Bank of Paraguay.

When negotiating the Treaty on Monetary Union, European states reserved control over their own banks, ceding the least amount of authority possible to the ECB. The system was only sustainable – politically, economically and financially – as long as everyone was profiting. With the arrival of multiple debt crises and banking crises and considering a languishing global export market, the kind of economy that allowed this system to work is gone and unlikely soon to return.

Considering Europe’s political and economic disunity, the EU’s host of financial and institutional shortcomings, the sheer size of the problem and the ever-increasing pressure on governments and banks alike, perhaps the most notable outcome after a week of largely failed summits was that the euro zone remained intact.

However, on the floor of the German Bundestag last Wednesday, it was made abundantly clear that the one country that might have the financial resources to resolve the crisis will not

be sharing them. Neither the common currency nor the common market can exist in a Europe in which the union’s members are unwilling to share burdens and follow collective rules. Germany at present is focused on the rules, while the countries in need are focused on the burdens. Both approaches are correct in their own way, yet both are wrong.

Despite failing to articulate the specifics of any credible financial resolution to Europe’s debt crisis, this was about as good of a political response as Europe could hope for given the circumstances. By alluding to – but not mandating – a restructuring, no crushing pressure has been put on the banks, yet.

By not announcing the details of how the European Financial Stability Facility will be expanded, European leaders have denied critics for now the opportunity to proclaim failure. That Germany, the one country whose participation is required in any solution for Europe, is pursuing its own interests in such a brash manner does not bode well for Europe’s future. ● This edited version of “European disunity halts solutions to crisis” is republished with permission of STRATFOR. stratfor.com

Schengen governance reform – another dilemma for the EU Agata Gostyƒska

R

ecent developments in North Africa have highlighted how insufficient the integrated management of the European Union’s external borders is. The increased pressure that migration has placed on the EU’s southern borders has not only accelerated legislative efforts to strengthen the operational mandate of the European Agency for the Management of Operational Cooperation at the External Borders (Frontex), but also initiated a lively discussion about the future of one of European integration’s major achievements: the abolition of internal border controls.

The spirit of the Schengen system has been strained following the recent migratory inflow from the EU’s southern neighbors. Fearing an influx of migrants, France temporarily reintroduced internal border checks in April 2011. This was in response to the decision by Italian authorities to issue residency permits and travel documents to migrants coming mainly from Tunisia.

Later on, Denmark reinforced customs controls on its borders. Those measures raised concerns about whether they were compatible with EU law, which provides for the free

movement of goods, services and people.

These unilateral actions breached the solidarity of Schengen members, elevated the danger that the zone would disintegrate and opened an inter-institutional debate about Schengen governance reform.

Proposals for reform In September, the European Commission tabled proposals aimed at amending the current Schengen border code and establishing an evaluation and monitoring mechanism to verify the application of Schengen rules.

The proposals include shifting the decision-making process concerning the temporary reintroduction of border checks against a serious threat to public policy or internal security from the intergovernmental level to the European level.

A decision would be made by the European Commission after consulting first with a committee of experts from member states. If immediate action is necessary, a member state could reintroduce border controls for up to five days. However, any extension of that period would be up to the

Commission.

Also, temporary EU internal border controls could be imposed if a member state consistently fails to apply the Schengen rules, such as protection of the EU’s external border, despite practical and financial assistance from the EU. According to the EC, the application of the community method would better safeguard Schengen integrity and allow a quick response to future challenges.

The EC proposals may have profound consequences for further Schengen integration. As such, they might cause concern among Schengen members, including non-EU members such as Norway, Iceland and Switzerland.

The procedure envisaged by the Commission does not seem to provide for these countries to fully participate in the decision-making process on possible reintroduction of border controls.

However, as pointed out by the EC, the current system is not effective for an area covering 25 or more members and, therefore, better coordination of the decision-making process at the EU level seems necessary.

Difficult negotiations ahead It will be a tough nut to crack for both the Polish and subsequent presidencies, which will run legislative negotiations on behalf of the Council. While finding a consensus to bring decisionmaking about border checks to a European level might be difficult to achieve within the Council and later on in the

ment has been further postponed because of Dutch and Finnish resistance. Bulgaria and Romania, which have met technical requirements to join Schengen, should be given a clear political signal that Schengen governance reform will be more efficient with them on board.

Enlarging the Schengen area, even

“Schengen reform will be a tough nut to crack for both the Polish and subsequent presidencies” European Parliament, the debate to enhance the evaluation and monitoring of the Schengen application should be regarded as a good start for further actions.

Schengen enlargement A fruitful debate about Schengen reform, particularly concerning upgrading standards for the evaluation of how the system is being applied, could hasten the presidency’s activities to bring Bulgaria and Romania into the zone. Despite the Polish presidency’s latest efforts, Schengen enlarge-

if undertaken by a gradual lifting of sea, air and, later, land borders as proposed by the Polish presidency, should remain high on the EU agenda. The proper implementation of the Schengen rules by the new members can contribute in the longer term to an improvement in security on the EU’s external borders. The sooner there is unanimity on this European goal, the better. ● Agata Gostyƒska is an analyst at the Polish Institute of International Affairs. pism.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

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

CO-MANAGING EDITOR

REAL ESTATE EDITOR

CONTRIBUTORS

PRODUCTION MANAGER

GARETH PRICE (GPRICE@WBJ.PL)

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

PIOTR WYSKOK

CO-MANAGING EDITOR

COPY EDITORS

ALICE TRUDELLE

DAVID INGHAM ELLA PA¸KA

E. BLAKE BERRY EWA BONIECKA PIOTR ÂLUSARSKI RICHARD WERNICK JOANNA WÓYCICKA

(ATRUDELLE@WBJ.PL) POLITICS EDITOR

REMI ADEKOYA (RADEKOYA@WBJ.PL)

INTERNS IZABELA DEPCZYK VERONIKA JOY

MARKETING &SALES

PR & MARKETING SPECIALIST

AGNIESZKA BREJWO

NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL)

MARKETING &SALES DIRECTOR

PRINT & DISTRIBUTION COORDINATOR

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

(ABREJWO@WBJ.PL) GRAPHIC DESIGNER

BOOK OF LISTS SPECIALIST

¸UKASZ MAZUREK JOWITA MALICH (JMALICH@WBJ.PL)

COLUMNISTS

PAUL FOGO JUDITH GLINIECKI ADAM NARCZEWSKI ANDREW NAWROCKI

MANAGING DIRECTOR MONIKA STAWICKA

CARTOONS

PIOTR WYSKOK

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

JOANNA RASZKA (JRASZKA@VALKEA.COM) SUBSCRIPTIONS MANAGER

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

12

COVER STORY

www.wbj.pl

OCTOBER 31 – NOVEMBER 6, 2011

Christmas spending to rise

Religion & politics

Research institute TNS OBOP expects Christmas expenditures in Poland to surpass z∏.23 billion this year, 5% higher than they were in 2010. The study shows that only 4% of Poles do not expect to buy anything during the holiday season. Price will be a key factor in shoppers’ decisions, meaning analysts expect many Poles to head to hypermarkets and to do online shopping.

Poland at a cross roads

Polish discount supermarket chain Biedronka’s Q3 sales rose by 25.3% year-on-year to z∏.17.4 billion. At the end of September this year, Biedronka had 1,756 stores, 197 more than at the same time a year earlier. Jeronimo Martins, the Portuguese owner of Biedronka, now plans to start investing in South America.

TP to downsize Poland’s incumbent telecoms operator, Telekomunikacja Polska (TP), announced that it will cut its workforce by 9.4% over a two-year period.

The firm, which now employs over 24,339 workers, agreed with unions on 2,300 voluntary redundancies to take place in the period 20122013. The decision was made because the firm has been suffering from falling sales.

The success of Palikot’s Movement in October’s parliamentary elections has been seen by some as a step toward a more secular Poland Almost immediately after it was elected into the Polish parliament, Palikot’s Movement (RP), the party led by maverick former Civic Platform (PO) member Janusz Palikot, demanded that a wooden cross in the Sejm, the lower house of parliament, be removed.

Mr Palikot has also stated that he would like to ban crosses from other public institutions, such as schools and hospitals. He and other members of his party argue that unlike the Polish eagle, the cross is not a national symbol and therefore should not hang in public buildings.

“If you want to live in a democratic country in the 21st century, in the center of Europe, and be a member of the Council of Europe, there is no place for a cross in a public place like parliament,” Robert Biedroƒ, a newly elected RP MP, and the first openly homosexual member of the Polish parliament, told WBJ. RP’s stance has angered Jaros∏aw Kaczyƒski, a former prime minister and the leader of opposition party Law and Justice (PiS).

“There is no reason for the cross to be eliminated, just because a group of people with crazy beliefs wish for it to be so,” Mr Kaczyƒski said recently.

Public opposition

PolskiBus.com increases fleet Souter Holdings Poland, which owns bus operator PolskiBus.com, announced it will buy 50 new luxury coach buses, increasing its fleet to 68 vehicles. This will put the newcomer to the Polish market among major transportation companies in the country. According to the firm, passengers are attracted mostly by the low prices. ●

According to a survey by TNS OBOP for daily Gazeta Wyborcza, Mr Kaczyƒski is not alone in opposing the removal of the cross in the Sejm. As many as 70 percent of those polled agree that it should remain in Poland’s parliament, compared to just 20 percent who think it should be removed.

With regard to the removal of crosses in hospitals, the figures are even higher, with 84 percent saying that crosses should remain.

These figures are not par-

“The church does pay taxes,” Archbishop Stanis∏aw Budzik, general secretary of the Polish Episcopal Conference, told the Catholic Information Agency (KAI).

Referring to RP’s electoral promise, Archbishop Budzik said, “This was one of the pre-election tricks that

ticularly surprising considering Poland is one of the most staunchly Catholic countries in the European Union, with as many as 80 percent counting themselves members of

“The cross is a symbol, but we should rethink our politics about financing and supporting the church” their local parish, according to data from the Polish Public Opinion Research Center (CBOS).

Moreover, according to the Catholic Church Statistics Institute, over 35 percent of Poles (13.8 million), still attend mass on a regular basis.

However, times are changing and support for crosses hanging in public institutions and schools is now much lower than it was in the late 1990s, surveys suggest. Over 90 percent of those polled by the Polish Catholic Church Statistics Institute in the late 1990s believed that crosses should hang in public institutions and schools.

Mr Palikot is at the vanguard of opposition to the display of Catholic symbols in Polish public buildings, and is even prepared to take the matter to the European Court of Human Rights in Strasbourg if the cross in parliament is not removed (see Legal Eye, p. 13).

Taxing the church In his election manifesto, Janusz Palikot also proposed a tax on the church, since at present it is not required to pay tax on its real estate, and on the millions of z∏oty in donations it receives every year. The only tax revenues the government currently receives from the church are those paid by priests on

are not based on real evidence.”

However, Maciej Rapkiewicz, an expert on public finance at the Sobieski Institute, a think tank, said that despite the fact priests do pay taxes, it is little help to the budget as a whole.

“There are 14 million people who live below the poverty line in Poland,” RP’s Robert Biedroƒ told WBJ. “And we pay priests in public schools to teach Catholic religion? We support someone’s religion with public money?”

The rise of Palikot’s Movement Whether or not the church will in the end be taxed more extensively, the rise of Palikot’s Movement represents a significant develop-

ment on Poland’s political and social landscapes. Some experts think RP has a strong future ahead of it, potentially as one of Poland’s main opposition parties.

“RP has a good shot at becoming Civic Platform’s main opposition party in four years’ time,” said Piotr Maciej Kaczyƒski, an analyst with The Centre for European Policy Studies. “This may mean that in four years, PO will have some 35 percent of support and PiS and RP will have 25 percent each.”

As to whether the Catholic Church is losing its grip on Polish society, Mr Kaczyƒski said that Poland is not yet becoming more secular, but is instead becoming more tolerant. In contrast to most other parties, RP openly discusses issues such as abortion, same-sex civil partnerships, and separation of the church and state.

“Janusz Palikot brings up issues that are either very popular with the public – for example abortion – or very unpopular, for example the cross in the Sejm, or gay unions,” he said.

Interestingly, not everyone sees Mr Palikot’s anticlerical stance as being negative for the church. Józef Baniak, of the department of theology at Poznaƒ’s Adam Mickiewicz University, even thinks that the movement could help the church.

“Anti-clericalism has two faces: positive, when, through

The Lord giveth ...

Forecast income of the Roman Catholic Church in Poland in 2011 (in z∏. billions) 0.021 0.094 SHUTTERSTOCK

Biedronka’s sales up

Roberto Galea

income from religious education lessons.

A recent TNS OBOP poll for Polish television station TVP found that 62 percent of those surveyed think the church should be taxed on donations.

0.1

Religious education Donations from devotees

1.22

1.63

EU grants (average) Church Fund Funds from the budget to pay chaplains

Total z∏.3.065 billion

Source: Money.pl

COVER STORY

OCTOBER 31 – NOVEMBER 6, 2011

criticism, it points to the right direction for the clergy in the secular state and society, and negative, when it fights the clergy, trying to push it completely out of the public

sphere,” Mr Baniak told weekly Tygodnik Powszechny.

However, members of Palikot’s Movement have said their aim is not just to cause trouble, but to get soci-

SHUTTERSTOCK

“RP has a good shot at becoming Civic Platform’s main opposition party in four years’ time”

Janusz Palikot says that Poland’s national symbol is the eagle, not the cross

Opinions are divided on what the long-term significance of RP’s plans will be for Poland.

“This agenda is key for Janusz Palikot’s political career,” Father Piotr Tarliƒski told WBJ. He explained that in this way, despite being in opposition, Mr Palikot can keep himself in the headlines with a “populist agenda.”

Asked if the strong voter support for RP points to a radical change in Polish society, Mr Tarliƒski said that the demographics of Polish anti-clericalism did not look much different two decades ago than they do today.

“The cross issue will not bring about any major changes, as the recent polls have confirmed,” Mr Tarliƒski said.

But professor of social psychology Janusz Czapiƒski thinks that the arrival of RP could be the start of an “avalanche of change” for Polish society.

Speaking on radio station TOK FM, Mr Czapiƒski said that “people who voted for Palikot’s Movement were hungry with unfulfilled hopes, ambitions and values. They did not find such a representation in the existing political system.”

He argues that there is a hope for this demographic.

“This is a large group, the people who are affected by the words of Palikot’s people. They want to make a cultural change. And I think they will succeed,” he said.

Only time will tell if RP’s emergence as a new political force really does signal a significant change in Polish society, or if it is merely a short-term reaction that will die out over the course of the next parliamentary term. ●

Pennies from heaven This Bible verse has recently taken on new meaning for the church in Poland after it raised the possibility that the Church Fund could be liquidated. The Church Fund was set up in the early 1950s as a form of state repayment for the over 100,000 acres of land and property which had been taken away from the church since the end of the Second World War. The church has now suggested that in its place, Poles be allowed to direct 1 percent of their income tax

to a church of their choice.

“If the tax that we pay the state, is, for example, z∏.100, then at present we can offer z∏.1 to public organizations,” Józef Kloch, the spokesperson of the Polish Episcopal Conference, explained at a recent press conference. “Now [we propose] that another z∏oty from the same z∏.100 be given to any church we support.”

At present, the Church Fund is used to finance pensions and health insurance for the clergy, while donations to collection plates are used for parish maintenance and as a source of petty cash.

The church receives around z∏.100 million a year from the fund, according to calculations made by finance portal Money.pl. It is therefore a relatively minor source of income for the church, which earns around z∏.1.63 billion from the teaching of religion in schools and other institutions, and z∏.1.2 billion in donations from devotees.

According to calculations by Gazeta Wyborcza, with the 1 percent tax donation, the church would increase its revenues to as much as z∏.600 million, compared to the z∏.100 million a year it receives from the Church Fund. ●

13

Legal Eye

said. “Not about the place of the cross, which is a symbol, but about the fact that maybe we should rethink our strategy about the church, and rethink our politics about financing and supporting it.”

ety to think more deeply about certain issues.

“My dream is to launch a debate, which was until now silenced by all the political parties,” Robert Biedroƒ

Time for change?

“Render unto Caesar the things which are Caesar’s, and unto God the things that are God’s” (Matthew 22:21).

www.wbj.pl

The constitution and the cross Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com The current controversy regarding the placement of a cross in parliament represents just the latest chapter in a long-running debate over the constitutionality of the Christian symbol being displayed in a government building. As far back as 1997, leftist political party the Democratic Left Alliance (SLD) protested against the display of the cross in Poland’s lower house, the Sejm. Today, Palikot’s Movement (RP), the political party led by Janusz Palikot, has picked up the baton to again question the constitutionality of the same cross and, more broadly, the separation of church and state.

cle 5 is also cited in support of the cross, by which the government is required to “safeguard the national heritage” of Poland. Supporters believe that the cross is a symbol of Poland’s Christian heritage, and therefore part of the country’s national heritage, which the Polish government is obligated to safeguard for future generations.

Separation of church and state

Last week RP submitted a motion to the speaker of the Sejm to remove the cross, arguing that the public display of the cross violates both the constitution (article 25) and the Act Guaranteeing Freedom of Conscience & Faith (article 10). Conversely, supporters of the cross, including the centrist political party Civic Platform (PO) and rightist party Law and Justice (PiS), also use constitutional arguments to defend displaying the cross in the Sejm.

The separation of church and state in Poland can be traced back to Poland’s first post-war constitution, adopted in 1952.

Modeled on the Soviet Union’s constitution of 1936, Poland’s own constitution declared quite simply, “The church shall be separate from the state.” Today’s constitution, however, does not call for the express separation of church and state. In its place, the constitution states that the relationship between the state and religious organizations is to be based upon the principle of autonomy and mutual independence of each in its own sphere. The constitution obligates the state and religious organizations to cooperate for the common good of the nation.

Arguments for and against

European Court of Human Rights

Opponents argue that the public display of the cross in the Sejm violates article 25 of the constitution, specifically that all “religious organizations shall have equal rights” and that the “Republic of Poland shall be impartial in matters of personal conviction.” Moreover, RP argues that placement of the cross violates the Act Guaranteeing Freedom of Conscience and Faith, which requires the Polish government to remain “neutral in matters of religion and faith.” Hanging the cross in the Sejm violates the rights of other religious groups and in fact favors the Catholic Church, RP argues.

However, PiS cites the introduction to the constitution in defending the cross, by which the authors of the constitution acknowledge “our culture rooted in the Christian heritage of the Nation” and the nation’s obligation “to bequeath to future generations all that is valuable from our over one thousand years of heritage.” Moreover, arti-

Mr Palikot has threatened to bring this matter before the European Court of Human Rights in Strasbourg if his motion to remove the cross is unsuccessful in Poland.

Historically, though, the court has been very reluctant to interfere in matters of religion. EU custom and legal precedence does not favor Mr Palikot in this matter. In the EU four member states, for instance, have official national churches, such as the UK’s Church of England, while many governments subsidize Christian education, including Austria, Italy, Spain, France, Germany, Ireland, the Netherlands, Slovakia and Poland.

The European Court of Human Rights has thus far refused to strike down any of these national laws, even if such laws clearly favor one religion over another. I suspect Mr Palikot will fair no better, which means this issue will ultimately be decided in Poland and not in Strasbourg. ●

Unconstitutional?

INTERVIEW

www.wbj.pl

Madonna’s Polish stalker detained A court in London has decided 30-year-old Pole Grzegorz Matlock, who broke into Madonna’s home last March, posed a serious risk of harm to the American pop star and ordered him to be detained in a psychiatric hospital. Mr Matlock is also banned from going within 100 meters of any of her homes. Madonna told the court she felt “alarmed and distressed” and worried about the safety of her children.

Chinese firm to buy HSW Trade unions at Huta Stalowa Wola (HSW), a Polish state-owned construction machinery and military equipment manufacturer, have agreed on a package of employment conditions with the Chinese heavy machinery producer LiuGong Machinery, reported Rzeczpospolita.

This brings LiuGong Machinery closer to buying HSW’s civilian construction equipment arm. LiuGong Machinery will pay in excess of z∏.250 million, the newspaper wrote.

Beef exports strong This year is proving to be a successful one for Polish exporters, with meat companies being the biggest winners. In 2011, revenues from exports of beef by ¸meat¸uków, a leading Polish meat company, have so far risen by more than 40%, a level of growth outpacing that of prior years, Rzeczpospolita reported. ●

REDUCE YOUR CORPORATE TAX TO 10%

SET UP A

CYPRUS COMPANY (LLC)

NOW! erteam@cytanet.com.cy www.erteamcorp-services.com

OCTOBER 31 – NOVEMBER 6, 2011

PR & politics

The secret behind Palikot’s success WBJ talks with Piotr Tymochowicz, the controversial PR strategist behind Janusz Palikot and his party Palikot’s Movement (RP), which has taken the Polish political scene by storm Remi Adekoya: Why do you think Palikot’s Movement (RP) was so successful in the recent parliamentary elections?

Piotr Tymochowicz: Even the best ideas will never be transformed into reality if they are not properly packaged. You have to know how to communicate with people and how to sell your ideas. It was also important that we managed to keep people optimistic and hopeful even when we were polling at 1 percent.

People believed in our ideas. There are two types of leaders: those who act according to what the latest opinion survey tells them, thereby achieving popularity a priori, and then there are leaders who don’t say exactly what people want to hear or expect to hear, but people still follow them.

Leaders like that are able to create new attitudes and a new vision of reality that they convince people to share.

Janusz Palikot is such a leader.

What was Mr Palikot’s strongest asset during the campaign?

The fact that he doesn’t talk like other politicians. Instead, he says things that people think and discuss, but only in the privacy of their own homes. He was also able to explain complicated matters in simple language.

You often talk of “open communication,” which is supposed to create positive emotions in others and diffuse negative emotions. But Mr Palikot arouses aggression and hatred in many.

That is true. If Mr Palikot only used open communication without saying things that challenged stereotypes, then he would build only positive emotions. But his aim wasn’t to build positive relations with everyone around him, the aim was to bring around as many people as possible to his particular political vision.

Former President Aleksander KwaÊniewski has suggested cooperation between RP and his former party, the Democratic Left Alliance (SLD).

What’s your opinion on this?

You know, some time ago I

decided to go through Aleksander KwaÊniewski’s speeches and look for some deep or revealing statements or analysis which he has made in the last 20 years. I found nothing of the sort. Mr KwaÊniewski is purely a marketing product who has nothing interesting to say on any subject, so I don’t understand why some leftist politicians flock to him for advice or why he feels he can speak out on matters like SLD-RP cooperation.

Mr KwaÊniewski enjoys a lot of prestige and respect among Poles. He was a popular two-term president.

Prestige and respect don’t come out of nowhere, they are created by marketing and PR. If Napoleon were to be resurrected from the dead today and you put him in a cheap suit and asked him to walk the streets of Warsaw, do you think anyone would even notice him? That shows you the nakedness of political leaders without marketing.

But some politicians have an army of PR specialists and still don’t achieve such success, why is that?

It’s not just a matter of repeating the same slogans. There is nothing like one big PR truth.

It’s a question of how you say

REPORTER

14

Mr Tymochowicz says prestige and respect are “artificially created” by marketing The PM kicks some people out of the party and it seems as if he has solved the problem.

But he hasn’t, because he has addressed the consequences and not the root of the problem. But image-wise he looks like a decisive leader. Also he has two qualities very important to people nowadays: stability and predictability.

RP overtook the establishment leftist party SLD in the October 9 vote. What mistakes did they make?

There were a lot of mistakes, but I can tell you that I saw it coming. A lot of SLD MPs

“One of the first things Poles should do is chase away all the paupers from parliament” the slogans, what strategies you implement to communicate your message and not so much the message itself. If you employ 15 PR experts and still fail, it doesn’t mean that PR itself is ineffective, it means the 15 guys you have are crap.

Prime Minister Donald Tusk has just won back-to-back parliamentary elections.

What in your view is the key to his success?

That he is just like Mr KwaÊniewski – and by that I mean nondescript and bland.

He avoids difficult situations while creating the illusion that he is handling them. What happens when there is a problem in Civic Platform [PO]?

who I know personally were completely uninterested in their party’s final results.

What counted for them is that they got into parliament.

Being an MP is simply a lifestyle they are used to. It’s easy money and a safe job. In my opinion, one of the first things Poles should do is chase away all the paupers from parliament. All those jobless, broke folk are just happy to have an MP’s salary.

And they are easily corrupted.

MPs should be successful people, businesspeople who have already achieved something and made money.

Speaking of money – while RP’s social views are very

leftist, economically it is very liberal, supporting a flat rate for personal and corporate income tax, as well as VAT. Is RP really a leftist party?

Today we can’t think in that bipolar fashion, that on one side is capital, which is against the interests of the lower and middle class, and on the other side is the centrally-controlled economy. It’s like making it a choice between a football game without players but just referees or a game where there are only players and no referees at all. Both of these models have failed. The best option is a game with players, a set of rules and the discreet intervention of the referee when necessary.

Look at the Scandinavian states today. It’s not a matter of the state taking care of the citizen from cradle to grave, but about the state going in the direction of justice. That doesn’t mean everybody is given the same things, but rather equal opportunities.

Access to education, healthcare, etc.

The state should ensure everybody has the opportunity to succeed, but what the individual does with that opportunity is his responsibility. Of course there will never be equality, because that in itself is unattainable.

People say you want to start a revolution against religion and the church.

That is not true. Honestly speaking, when we started out, our target was people involved in small and medi-

um-sized businesses, since we found that these people felt nobody was representing them on the political scene.

They want a state that is friendlier to them. Of course, we also want a clear separation of church and state. Since issues like the cross in parliament are more interesting for the media, that’s what makes the news.

But won’t your voters be disappointed when in a year’s time they find you have not fulfilled your promises? It’s impossible to deliver on many of your promises without being in government.

People realize that being in opposition you can’t implement your program. From time to time we will bring up issues like the cross in parliament and mobilize people around them, in order to let people know we have not forgotten our campaign promises.

From what position will you attack PO as an opposition party?

PO is like a train with two wagons. In one wagon are people like Bartosz Ar∏ukowicz with liberal views and in the other wagon are people like Jaros∏aw Gowin with very conservative views. Either the two wagons will go in different directions and cause an accident or they will go very slowly in one direction with the other side halting progress. We are very strongly on the side of the progressive bandwagon and we will be very clear about that. ●

INTERVIEW

OCTOBER 31 – NOVEMBER 6, 2011

www.wbj.pl

15

Palikot’s Movement

Robert Biedroƒ, newly elected MP for Palikot’s Movement (RP), and Poland’s first openly homosexual lawmaker, talks to WBJ about why he left the Democratic Left Alliance (SLD) and his hopes for his first term in parliament Alice Trudelle: You spent 18 years involved in politics working with the Democratic Left Alliance (SLD), so what made you decide to join Palikot’s Movement (RP)?

Robert Biedroƒ: I was kicked out from SLD’s electoral list.

In practical terms I resigned, but as they gave me a position in which I stood no chance of getting into parliament, they effectively kicked me out.

Twenty minutes after finding out that I had resigned from SLD, Janusz Palikot called me

change Poland and to influence politics. That’s the most important thing for me.

I will not defend Janusz Palikot. I have spent many evenings with him and he impresses me, as he is a philosopher and is very intelligent. Talking to him is definitely an intellectual feast. But how this will translate with the party in the future I do not know. He is a strong leader, but I am a strong leader, and many people in RP are also strong leaders. So we will have

“People want to know why we pay priests’ salaries and we don’t increase teachers’ salaries” to wait and see.

I am happy that Mr Palikot gave me a chance to be in parliament, a chance that I, Anna Grodzka [Poland’s first transsexual MP] and Wanda Nowicka [a social activist, feminist and experienced politician] for example, never had in SLD. But I think he may have a problem with his parliamentary club. As opposed to other parties, we are a movement of individuals who joined because we have issues to deal with that we want to solve. We have a common idea of a modern, secular and friendly state. And that’s it.

to invite me onto his party’s list; this was without signing any agreement, without asking me to join the party. He said: “Come join me and let’s change Poland together.” I had nothing to lose. I am not dependent on anyone and I am as free as a bird.

Mr Palikot has often been described as a troublemaker rather than a serious politician.

That doesn’t bother me.

Janusz Palikot can have his own strategy, but I am in parliament, I have the tools to

Rainbow Europe Country ratings on laws and practices which protect or violate LGBT rights, with 17 being the best protection and -7 the worst level of discrimination

UK Germany

Is that enough to keep the party together?

I don’t know, but I hope so. I hope that we can build a strong, modern party which will bring the changes many expect in Polish society. I am very optimistic about that. But this is only my personal optimism.

I am discovering the [parlamentary] caucus now. Of course maybe one day I will join the party, when it is clear what direction we will take.

But for now, I have an independence that I would never have received in SLD. Janusz Palikot never calls me to tell me what I should or should not say. All the members of other parties that I know receive text messages with instructions on what they should say about which topics.

But we don’t.

It is a new party, barely a year old. Now it is mainly a social movement, but we should also launch a debate inside the party regarding the direction we should take. For example, our concept of the economy was not discussed in detail. Mr Palikot is known for wanting to take down crosses from public buildings, stop the financing of the church, sanction civil unions and so on, but not as much for his vision of the economy. I think now we will have a chance to debate this.

As I said, I was a member of SLD for many years, and as a result I know how established parties work. RP has a completely different character.

People who joined RP didn’t do it because Janusz Palikot had power or money or could give them a job. People joined because they shared some similar ideas, mainly about what the state should look like: modern, secular and friendly for businesses.

Now, all of these people will have to sit down and launch a political debate. This is the beginning of what I hope is a long road.

Denmark Hungary Austria France Switzerland Czech Republic Bulgaria Lithuania Poland Italy Georgia Russia Belarus Ukraine

-6

-3

0

3

6

9

12

15

Source: Rainbow Europe Country Index 2011, ILGA-Europe

Which issues do you personally want to tackle in parliament?

The most pressing issue for the Polish lesbian, gay, bisexual and transgender [LGBT] movement is definitely a civil unions bill. This is one of the first issues we will tackle in parliament. I think there is a big chance to persuade the majority of MPs to vote in favor of such a bill. Prime Minister Donald Tusk has promised that after the elections his government would deal with this. This is an important problem not only for gay people, but also for straight couples

SHUTTERSTOCK

Hopes for a new Poland

Robert Biedroƒ says he is optimistic that Palikot’s Movement can effect social change who live together and do not benefit from legal protections offered by marriage.

The other important issue for LGBT people is homophobic, transphobic and sexist hate speech. We have a lot of that in public life and it needs legislation. We also need changes in education. There are still books used in schools which say that homosexuality is a disease and that if you stay in a homosexual relationship you might have brain damage.

If we teach homophobia at school, what can we expect from adults?

And then I think we need to reflect on state spending on the church and the military. We should stop financing churches completely.

And if people don’t understand the constitution, we probably need to make it more explicit and say where we should put crosses and where we should not.

Our whole proposition is to separate the church and the state. I really look forward to debating this issue. People want to debate about the place of the church in their lives.

People want to know why we pay priests’ salaries and we don’t increase teachers’

salaries. People want to know why we build new churches with public money, why we support Catholic universities and kindergartens, when we don’t have public kindergartens.

I also want to work in the foreign affairs committee, especially on the strategy to open up the EU to new member states. And in addition I want to be on the economic committee. I think we should talk seriously with banks. We wouldn’t have this crisis if banks were not dominating governments and dictating economics.

The main opposition party, Law and Justice (PiS), has already said it will ignore Palikot’s Movement in parliament. How do you expect other opposition parties to react to RP? Why are PiS in parliament if they want to ignore others?

You go to parliament to debate, to solve problems together, to make compromises. But this is typical of PiS, so I am not surprised.

Personally I am open to debate. If we go to parliament we take responsibility and we agree to debate, not to be iso-

lated. If you want to isolate yourself you should go to the desert and stay there.

Regarding SLD politicians, they are my colleagues. For many years I had a feeling that they were reading the Concordat [the agreement between the Catholic Church and the state] too often and the Polish constitution not often enough.

So I ask them to read it again.

When they do, I am sure they will understand what mistakes they made.

Never in their worst dreams did SLD think they would achieve such a bad result. But it seems like society changes faster than politicians, and this is one of the factors behind RP’s success.

I think SLD has to be more open because since PiS has a strong social agenda too and has conservative views on society, if SLD does not change there will be no room for a party like them in Polish politics. So I invite them to rethink their strategy and to join us and build something together. That is their only chance. ● Log on to WBJ.pl for an extended interview with Robert Biedroƒ on his personal story

The Ferio Pogodno mall project in Szczecin has been put on hold

Luxury apartments in Warsaw are selling well, developers say 17

19

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

Some 20,000 sqm of space has been added to the mall Expansion work on the Silesia City Center shopping mall in Katowice, Silesia voivodship, has been completed, increasing the total area of the scheme from 66,000 sqm to 86,000 sqm.

A total of 60 new tenants will rent space in the expanded section, including H&M, Tommy Hilfiger, La Mania and Harpers Shoes.

The investment, which cost just over €50 million, was carried out by Austrian developer Immofinanz Group, the current owner of the shopping center.

Silesia City Center says the expansion work will strengthen the mall’s status as regional

Galeria T´cza mall opens Legnica-based real estate developer and investor Rank Progress last week opened its Galeria T´cza shopping center project in Kalisz, Wielkopolskie voivodship. The scheme, which cost z∏.111.5 million to construct, comprises 33,700 sqm of space and will house approximately 80 tenants. Rank Progress expects to finalize a sales transaction concerning Galeria T´cza by the end of this year. According to a preliminary agreement the mall is to be offloaded for €39.8 million to a special purpose vehicle connected with Blackstone Real Estate ●

Szczecin’s Ferio Pogodno on hold . . . . . . . . . . . . . . . . . . . . . . . .17 Opera Office topped out . . . . .17

Gareth Price

The Silesia City Center shopping mall has a total of 60 new tenants

Yareal launches work on Oxygen Park

COURTESY OF YAREAL POLSKA

Yareal’s Oxygen Park . . . . . . . .16

market leader.

“We managed to do this primarily through diversifying our range of brands, which you will not find in any other mall in the region,” Ewa Marcinek, managing director at Silesia City Center, said in a statement.

“This move also provides Silesia with more competitiveness in relation to malls in Kraków, Warsaw and Wroc∏aw, where the residents of our region often make their purchases,” she added.

Ms Marcinek says she expects the investment to result in an increase in the number of shoppers coming to the Silesia City Center mall from countries including Germany, Russia and the Czech Republic.

COURTESY OF GUARANA COMMUNICATIONS

Silesia City Center expansion complete

Tetra Pak and Astellas Pharma are the first two tenants at the second phase of UBM’s and CA Immo’s Poleczki Business Park project in Warsaw.

Construction on the phase, which comprises two buildings with a combined 21,000 sqm of class-A office space, has been underway since January of this year; following the transaction, the phase’s building B1 has already been 50 percent leased out.

Poleczki Business Park is sitting on 14 hectares of land located on ul. Poleczki.

Silesia City Center . . . . . . . . . . .16

Oxygen Park will comprise two buildings with a combined 18,300 sqm of GLA

Skanska’s Wrocław plot . . . . . .17 Property-related stocks . . . . . .17 Inpro’s Chmielna Park . . . . . . . .18 RED Park in Poznań . . . . . . . . . .18 Polnord’s Wilanów Śródmieście . . . . . . . . . . . . . . . .19 Luxury homes market . . . . . . .19

OCT 31 – NOV 6, 2011, LI 16/43

Retail space

New tenants in Poleczki Park

In this issue

•

Developer Yareal Polska has begun construction work on its Oxygen Park office complex in Warsaw. The company’s latest investment in the Polish capital

will be located near the intersection of Al. Jerozolimskie and ul. Jutrzenki and will comprise two six-floor structures with a total of approximately 18,300

sqm of GLA. Designed by the JEMS Architekci architectural studio, the Oxygen Park project will feature a number of green

building solutions and is expected to obtain a BREEAM certificate of energy and environmental performance. The classA facility is scheduled to be

completed in 2013.

“Oxygen Park is a new office project of Yareal in Warsaw.

Like our previous investments, this scheme too will be best suited to our clients’ needs,” Eric Dapoigny, president of Yareal Polska’s management board, said in a press statement.

The Oxygen Park development’s floors will offer approximately 1,500 sqm of leasable space each and will be able to house up to four tenants. An additional advantage of the scheme, the developer said, will be its low common-area ratio of about 3 percent.

A subsidiary of Yareal International, Yareal Polska is present in the office and residential sectors of the Polish property market and is arguably bestknown for its Renaissance office building in Warsaw’s central district. Ongoing projects of the company include the Rezydencja Bia∏a and Ho˝a 55 housing schemes in the Polish capiAdam Zdrodowski tal.

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

OCTOBER 31 – NOVEMBER 6, 2011

LOKALE IMMOBILIA – REAL ESTATE

Retail space

www.wbj.pl

17

Opera Office topped out

COURTESY OF RAIFFEISEN EVOLUTION PROJECT DEVELOPMENT

Ferio Pogodno mall project put on hold

Developer Euro Styl topped out its Opera Office building in Gdaƒsk, Pomorskie voivodship, earlier this month. The project’s shell and core is now completed. The investment is scheduled to be delivered in July 2012.

“I am very pleased to confirm that the construction work on Opera Office is being carried out in accordance with the investment’s schedule,” Rados∏aw Serocki, project manager of Opera Office, said in a statement.

He added that the building’s

facade is now being assembled, as is its internal infrastructure.

“The installed heating system will enable us to carry out fitout work even in adverse weather conditions,” Mr Serocki said.

“The topping out of Opera Office is good news for a number of potential clients who are interested in leasing space in the building,” Magdalena Reƒska, head of office agency at Jones Lang LaSalle in Gdaƒsk, said in a statement.

She added that the first pre-

lease agreements have already been concluded and a couple of other lease negotiation processes are still in progress. Jones Lang LaSalle is the exclusive leasing agent for Opera Office.

Located on Gdaƒsk’s Al. Zwyci´stwa, next to the city’s technical university, the Opera Office project will comprise approximately 7,300 sqm of class-A office space. The scheme will also offer 122 under- and 79 above-ground parking spaces.

Adam Zdrodowski

The developer has failed to secure the plot designated for the shopping center Raiffeisen Evolution Project Development, a company owned by developer Raiffeisen Evolution, has put its Ferio Pogodno shopping mall project on hold.

The investment, which is due to be located on Szczecin’s Aleja Wojska Polskiego, in the city’s Pogodno district, is planned to comprise 31,500 of leaseable space. It was due to be completed in the fourth

quarter of 2012, but this deadline is now no longer achievable, the firm said in a statement.

Since 2008, the developer has been in dispute with the seller of the land, and despite efforts to reach a sales agreement none has been achieved.

Ferio Pogodno was set to be the fifth mall opened under the Ferio brand.

Ferio Gaj in Wroc∏aw was the first to open, in 2005, followed by Galeria Zielona in Pu∏awy at the end of 2006, and Ferio Legnica at the beginning of 2007. In May 2008, the latest

Ferio retail center was opened in Konin, central Poland. The mall, which has a rental area of approximately 30,000 sqm, is currently fully let, with tenants that include Castorama, H&M, CCC and Empik.

Founded in 2003, Raiffeisen Evolution focuses on developing residential, retail and commercial real estate in Central and Eastern Europe.

It has successfully completed real estate with more than 720,000 sqm of floor space and has almost 950,000 sqm currently in the development David Ingham phase.

Developer Skanska Property Poland has acquired perpetual usufruct rights to a 9,500-sqm plot located on Dominikaƒski Square in Wroc∏aw, Lower Silesia voivodship, on which it plans to build an environmentally friendly office building. The value of the transaction, which was brokered by Colliers International, has not been revealed.

“We are planning to develop an office building including a service and retail area. Design work will start immediately, in line with the local zoning plan, with the architectural design to be consulted with Wroc∏aw’s city architect,” Bartosz Kalinowski, project manager at Skanska Property Poland, said in a statement.

“Central location, easy access to public transport, proximity to hotels, shopping and service facilities make it an extremely attractive place for potential tenants of office space,” said Waldemar Olbryk, president of the management board of Skanska Property

COURTESY OF SKANSKA PROPERTY POLAND

Skanska buys plot in Wroc∏aw for office scheme

Construction on Skanska’s Green Towers complex is currently underway in the city Group.

Skanska Property Poland has so far developed one office project in Wroc∏aw, called Grunwaldzki Center. Construction is currently underway on the company’s Green Towers

complex in the city.

Skanska also has an investment called Green Day in the pipeline. Construction on Green Day is expected to launch in the first half of 2012.

Adam Zdrodowski

COURTESY OF JONES LANG LASALLE

The mall was due for completion in the fourth quarter of 2012

Opera will offer some 7,300 sqm of class-A office space

Property-related stocks Security

Closing price on Oct 27

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

80.30

11.37

64.00

109.20

-24.32

25,530,098

2,050.07

CELTIC

20.20

-0.49

15.55

60.55

N/A

34,068,252

688.18

DOMDEV

29.01

1.08

23.50

50.80

-35.83

24,560,222

712.49

ECHO

3.69

5.43

3.24

5.55

-29.58

420,000,000

1,549.80

ELBUDOWA

105.00

-0.94

98.00

180.00

-39.66

4,747,608

498.50

ENERGOPLD

2.50

0.40

2.45

4.10

-34.38

70,972,001

177.43

ERBUD

20.45

2.25

14.70

61.00

-59.82

12,644,169

258.57

GANT

8.25

6.59

7.30

19.70

-56.58

20,499,953

169.12

GTC

11.78

0.68

9.33

24.98

-48.78

219,372,990

2,584.21

HBPOLSKA

0.88

11.39

0.70

3.38

-73.57

210,558,445

185.29

JWCONSTR

7.48

1.91

6.10

18.00

-55.95

54,073,280

404.47

LCCORP

1.09

1.87

0.85

1.69

-33.13

447,558,311

487.84

MARVIPOL

9.00

4.29

7.22

12.81

-13.54

36,923,400

332.31

MIRBUD

2.55

2.00

2.25

4.75

-36.09

75,000,000

191.25

MOSTALWAR

24.88

4.10

19.70

68.00

-60.82

20,000,000

497.60

MOSTALZAB

1.43

13.49

1.07

3.55

-56.13

149,130,538

213.26

ORCOGROUP

18.60

11.71

15.70

40.00

-36.30

17,053,866

317.20

PBG

86.00

7.50

56.05

226.00

-61.05

14,295,000

1,229.37

PLAZACNTR

2.17

5.85

1.80

5.15

-56.60

297,174,515

644.87

POLAQUA

7.85

4.67

7.50

20.60

-51.24

27,500,100

215.88

POLIMEXMS

1.63

0.62

1.23

4.30

-60.91

521,154,076

849.48

POLNORD

14.07

7.00

11.03

37.30

-62.36

23,798,439

334.84

RANKPROGR

9.20

0.00

8.64

13.60

-14.42

37,145,050

341.73

ROBYG

1.17

6.36

1.04

2.13

N/A

257,390,000

301.15

RONSON

1.03

4.04

0.94

1.66

-36.81

272,360,000

280.53

TRAKCJA

1.75

-1.13

1.39

4.97

-63.39

232,105,480

406.18

ULMA

62.00

0.81

57.00

88.00

-22.50

5,255,632

325.85

UNIBEP

5.93

-1.98

4.47

10.30

-30.07

33,927,184

201.19

WARIMPEX

5.39

5.69

5.10

10.89

-40.04

54,000,000

291.06

ZUE

7.60

1.88

7.45

15.14

N/A

22,000,000

167.20

18

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

OCTOBER 31 – NOVEMBER 6, 2011

Prices for the first 170 units range from z∏.6,700-8,000 per sqm Warsaw Stock Exchange-listed developer Polnord has begun selling units in the first building of its under-construction Wilanów ÂródmieÊcie residential project in Warsaw. The building is located on ul.

Kazachska in the capital’s Wilanów district.

The company plans to sell 170 units in the under-construction building, which is one of five four-storey residential blocks that are due to comprise the scheme.

The apartments up for sale

range in size from 40 to 116 sqm and include a number of residences, including studio flats and four-bedroom apartments.

Prices for the first 170 units range from z∏.6,700-8,000 per sqm and there is an additional cost of z∏.33,000 for an underground parking space.

Construction on the first building is expected to be completed by October 2013.

A shopping center is due to be built close to the Wilanów ÂródmieÊcie project. Polnord will work with developer GTC

on investing in and developing the mall, which is to be of a similar size to the capital’s Galeria Mokotów. Preparatory work is already in progress and should be completed by autumn of 2012. At this point, construction on the investment can begin.

Founded in 1977, Polnord focuses primarily on office and residential real estate projects throughout Poland’s larger cities, including Gdaƒsk, ¸ódê, Olsztyn, Sopot, Szczecin, and Ella Pa∏ka Warsaw.

RED Development has launched construction on its RED Park residential project in Poznaƒ, Wielkopolskie voivodship. The scheme will be located on ul. 28 Czerwca 1956 in the city’s D´biec district. Its first phase, which will be built by construction company Henpol, will comprise 130 apartments.

On offer are units sized from 30-56 sqm and priced from z∏.5,100 per sqm, as well as a number of larger apartments with terraces located on the building’s top floor. The first phase of the RED Park development, financing for which has been provided by PKO BP, is scheduled to be completed in mid-2013.

RED Development has been active in the Polish market since 2006. The company is known for the multi-phased Alpha estate which it has been building in Warsaw’s Ursus district for a few years.

In the developer’s pipeline is a soft loft project in Wroc∏aw, Lower Silesia voivodship, which will comprise almost 17,000 sqm of space.

Internationally, the company is known for large-scale real estate projects in the United States and Western Europe. The firm’s completed projects include construc-

tion of an InterContinental hotel in Boston, Massachusetts, as well as the remodelling of the New York Insur-

ance Exchange building and a 140,000 sqm office building in Chicago.

Adam Zdrodowski

COURTESY OF PRESTIGE PUBLIC RELATIONS

COURTESY OF POLNORD

Polnord selling units in RED Park construction begins Wilanów ÂródmieÊcie

RED Park is located in Poznaƒ’s D´biec district

Pick up the latest edition of Warsaw Business Journal Group’s popular series of busines guides.

The publication features Trendbook Poland, a comprehensive view of the business trends shaping Poland’s market.

To order, e-mail kwilinski@valkea.com or call (+48) 22 639-8567 ext. 255

OCTOBER 31 – NOVEMBER 6, 2011

LOKALE IMMOBILIA – REAL ESTATE

Residential development

www.wbj.pl

19

Luxury apartments

Large, luxury apartments Construction set to start on Chmielna Park still popular in Warsaw

COURTESY OF INPRO

Warsaw Stock Exchange-listed developer Inpro has received a building permit for its Chmielna Park residential project in Gdaƒsk. The scheme will be located near ul. Toruƒska and ul. Chmielna on Granary Island, right in the center of the city.

The Chmielna Park project will comprise three buildings offering a total of approximately 314 apartments ranging from 27 sqm to 165 sqm.

The company began selling units in building A at the start of September 2011, with prices ranging from z∏.5,500 to z∏.8,500 per sqm. From the 55 residential units originally put up for sale, 38 units are still available to purchase.

Building B, a nine-storey tower, will be the main and most distinctive building in the project. The tower will also comprise commercial space on its ground floor.

Chmielna Park will offer around 314 apartments Upon completion, the Chmielna Park project will have a total usable area of 21,556 sqm, including all commercial space in the buildings. Some of the units will have balconies and several of the apartments on the higher floors will also have large terraces.

Construction is set to begin in the spring of 2012, with build-

ing A due to be ready at the end of September 2013. The whole project is expected to be completed by Q4 2015.

Established in 1987, Inpro is one of the largest developers in the Tri-City area. The company focuses on residential, office and other commercial development projects.

Ella Pa∏ka

Developers say that, contrary to popular belief, some of the most prestigious housing investments in Warsaw are experiencing stable demand for very large, and very expensive, units.

“The situation in the market of truly luxurious properties is nowadays stable. Prestigious real estate in the best locations in Warsaw also enjoys the interest of buyers in times of economic turmoil,” said Alicja KoÊciesza, sales and marketing director at Orco Property Poland.

The company is now building the Z∏ota 44 residential tower in the capital’s central district.

Ms KoÊciesza added that her company had already sold 38 percent of the units in Z∏ota 44 (which are priced from z∏.23,000-43,300 per sqm) with apartments sized over 150 sqm having been the most popular in recent months. “At the present stage of the project – build-

COURTESY OF REPUTATION MANAGERS

There is substantial demand for very large homes in top-drawer residential projects in Warsaw, developers say

Developer Inpro has received a building permit for the Gdaƒsk-based development

Eko Park launched construction on its Grazioso Apartamenty development earlier this year ing its shell and core – this is a very good result which has considerably exceeded our expectations,” Ms KoÊciesza said.

Moreover, developer EkoPark, which earlier this year launched construction on its Grazioso Apartamenty upscale residential project in Warsaw’s Mokotów district, said sales of homes in the investment are in line with the company’s original plans. Residences there are priced at an average of z∏.16,000 per sqm.

Barbara Klassek, sales and marketing director at EkoPark, said that 80 percent of the units which have already been sold in the Grazioso Apartamenty scheme are sized greater than 100 sqm. She added that buyers are particularly interested in the largest apartments, sized at over 150 sqm. However, the developer has not revealed how many homes have actually been sold in the project to date.

Adam Zdrodowski

20

MARKETS

www.wbj.pl

OCTOBER 31 – NOVEMBER 6, 2011

Stocks report

world stock indices DJIA

NASDAQ

12,208.55 (Oct 27 close)

S&P500

2,738.63 (Oct 27 close)

5.78% (for the week)

FTSE100

1,284.59 (Oct 27 close)

5.39% (for the week)

DAX

5,713.80 (Oct 27 close)

5.69% (for the week)

6.11% (for the week)

Stocks rally on euro-zone plan

NIKKEI225 6,337.84 (Oct 27 close)

8,926.54 (Oct 27 close)

9.91% (for the week)

2.81% (for the week)

CHANGE: -0.31%

CHANGE: -2.92%

CHANGE: -3.36%

CHANGE: -8.73%

CHANGE: -17.31%

CHANGE: -16.13%

(year to Oct 27)

(year to Oct 27)

(year to Oct 27)

(year to Oct 27)

(year to Oct 27)

(year to Oct 27)

52-week high: 12,928.50

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1.074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,227.63

Andrew Nawrocki, WBJ market analyst The week starting October 24 raised hopes for investors as European shares soared to their highest levels in 12 weeks. Markets opened on Monday trading higher on the optimism that European leaders were moving closer to a resolution of the eurozone debt crisis.

On Monday the WIG closed 2.49 percent higher, while the WIG20 gained 2.83 percent. Closing sharply higher were KGHM shares (up 5.19 percent) as copper gained nearly 7 percent.

Both Tuesday and Wednesday saw markets lose steam. A string of bleak forecasts by some major US corporations pushed shares lower, while doubts resurfaced prior to Wednesday’s EU summit. Despite this, indices in the US managed to edge higher. The WIG

Major indices WIG

41,708.88 (October 27 close)

WIG20

2,414.62 (October 27 close)

Change for the week: 4.48%

52-week high: 50,371.74

Change for the week: 8.66%

52-week high: 2,932.62

Change year to October 27: -18.50%

52-week low: 36,549.47

Change year to October 27: -19.33%

52-week low: 2,089.84

45,000

2,500

43,000

2,400

41,000

2,300

39,000

27.10

26.10

25.10

24.10

21.10

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

27.10

26.10

25.10

24.10

21.10

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

10.10

07.10

06.10

05.10

2,000

04.10

35,000

03.10

2,100 30.09

37,000

30.09

2,200

Top 5 MIDAS ECARD CDRED WIELTON AGROWILL

Closing 1.40 0.29 5.75 2.29 0.92

% change (week) 52-week high 89.19 5.25 52.63 0.59 44.84 9.88 37.13 5.70 31.43 1.22

52-week low 0.62 0.18 2.36 1.61 0.62

Top 5 KGHM LOTOS PEKAO PKOBP PKNORLEN

Closing 158.00 29.44 149.00 36.90 40.50

% change (week) 17.91 11.90 10.95 9.66 8.00

52-week high 200.30 49.50 197.20 47.01 58.85

52-week low 115.40 22.32 115.10 27.95 30.33

Bottom 5 WISTIL PCCINTER ATLANTAPL VARIANT REMAK

Closing 5.80 5.14 12.04 2.24 34.79

% change (week) -13.69 -13.61 -12.44 -11.11 -9.59

52-week low 5.71 5.00 6.91 2.19 32.70

Bottom 5 CYFRPOLSAT POLIMEXMS GTC BZWBK TVN

Closing 14.66 1.63 11.78 230.00 14.60

% change (week) -3.23 0.62 0.68 2.00 3.47

52-week high 17.69 4.36 25.19 240.00 18.53

52-week low 11.60 1.19 9.12 190.10 10.53

52-week high 29.10 8.50 16.50 5.26 67.90

Currency report

Catastrophe averted

Other indices sWIG80

9,176.87 (October 27 close)

WIG-Banki

6,060.03 (October 27 close)

27.10

26.10

25.10

24.10

21.10

20.10

19.10

18.10

17.10

14.10

13.10

12.10

11.10

27.10

26.10

25.10

24.10

21.10

20.10

19.10

18.10

17.10

14.10

5,000

13.10

40

12.10

5,240 11.10

41

10.10

5,480

07.10

42

06.10

5,720

05.10

43

04.10

5,960

03.10

44

30.09

6,200

10.10

52-week low: 4,944.19

07.10

Change year to October 27: -20.22%

06.10

52-week low: 42.20

05.10

52-week high: 7,387.49

Change year to October 27: -33.04%

04.10

Change for the week: 9.11%

03.10

52-week high: 64.07

30.09

Change for the week: 0.71%

45

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

27.10

26.10

25.10

24.10

21.10

20.10

19.10

18.10

17.10

52-week low: 8,483.22

12.10

11.10

10.10

07.10

27.10

26.10

25.10

24.10

21.10

20.10

42.76 (October 27 close)

52-week high: 12,932.00

SOURCE: WSE

NewConnect

19.10

18.10

17.10

8,000

14.10

2,000

13.10

8,400

12.10

2,100

11.10

8,800

10.10

2,200

07.10

9,200

06.10

2,300

05.10

9,600

04.10

2,400

03.10

10,000

30.09

2,500

06.10

Change year to October 27: -27.81%

05.10

52-week low: 2,086.64

04.10

Change year to October 27: -20.93%

03.10

Change for the week: 3.77%

30.09

52-week high: 2,987.72

14.10

2,327.34 (October 27 close)

Change for the week: 4.83%

13.10

mWIG40

and WIG20, though, shed slightly more than 1 percent each. Hit hard on both days was energy producer Tauron, losing slightly more than 3.5 percent.

Thursday saw markets rejoice as European Union leaders struck a deal with private banks and insurers.

These institutions agreed to accept a 50 percent loss on their Greek government bonds. The deal also boosted the region’s bailout fund to €1 trillion. Leading the surge were European financials, with French banks amongst the top gainers in Europe. In Poland, the WIG closed 2.79 percent higher, while the WIG20 gained 3.18 percent.

Friday, October 28, saw stock markets pull back in afternoon trading, with the WIG eventually closing -0.05 percent lower. ●

The summit of European leaders finally brought some significant decisions regarding the euro-zone crisis.

Banks will take losses of 50 percent on Greek debt and will need to raise €106 billion of fresh capital, while the EFSF will be expanded and new debt will be issued.

The markets reacted enthusiastically, despite the fact that the agreement brings nothing new to the table and that the measures are already priced into financial instruments.

Certainly the announcement of the “plan” averted a catastrophe on the markets, but there are still a lot of uncertainties (total Greek debt will only be reduced by less than 30 percent), so the euphoria might end soon if some macroeconomic data appears proving that we are

still not in a recovery.

The EUR/USD rallied all the way to $1.42 as investors showed confidence in the euro, reaching a two-month high, backing down towards the end of the week to $1.4150. On increased optimism the z∏oty appreciated.

The local currency was unaffected by the announcement that unemployment in September was higher than expected at 11.8 percent.

In the next couple of weeks the z∏oty will stay under the influence of global sentiment. Throughout the week, the EUR/PLN declined from z∏.4.39 all the way to z∏.4.32, while the USD/PLN dropped from z∏.3.17 to z∏.3.05, both two-month lows. Also, the decline of the CHF/PLN to z∏.3.53 eased the worries of those with Swiss franc mortgages. ●

currency rates 4.1491 26.10

4.0160

4.1320 25.10

28.10

27.10

28.10

27.10

26.10

25.10

24.10

SOURCE: NBP

4.1628 24.10

4.0963

4.1694 21.10

0.1024

0.1027

0.1030

0.1031

0.1027

4.0

21.10

28.10

27.10

26.10

25.10

24.10

PLN-100JPY

4.5

0.09

21.10

28.10

27.10

26.10

25.10

24.10

0.1020

3.5319

3.5482

3.5999

3.5781

3.5810

3.5

21.10

PLN-RUB

0.11

4.9085

4.9695

5.0351

5.0258

5.0548

3.5893

3.6

5

5.0482

3.0461 28.10

27.10

26.10

25.10

24.10

PLN-CHF

3.7

4

21.10

28.10

27.10

26.10

25.10

24.10

3.0

21.10

PLN-GBP

6

3.1083

3.1498

3.1445

3.1969

4.3190

4

3.1705

PLN-USD

3.5

4.3488

4.3856

4.3787

4.3960

4.3934

PLN-EUR

5

THE LIST

OCTOBER 31 – NOVEMBER 6, 2011

www.wbj.pl

21

Corporate Services

Certification Centers

8.6 16.0 17.8 17.0

WND WND WND WND

412 865 939 1,005

✓ ✓ ✓

✓ ✓ ✓

Industries in which company specializes

Certificates

Coal mines; services; medical ISO 9001; ISO 13485; ISO 14001; ISO 22000; industry; food industry; ISO 27001; PN-N 18001; AS 9100; ISO/TS automotive 16949; BRC; IFS; HACCP

www.bookoflists.pl Full-time employees / Year founded

TUV NORD Polska Sp. z o.o. ul. Mickiewicza 29, 40-085 Katowice 1 32 786-4646/32 786-4601 biuro@tuv-nord.pl www.tuv-nord.pl

Certification of: Systems / Products / Staff

1st half of 2011 / 2010 / 2009 / 2008

Range of activity: Certification / Training / Verification

Certificates issued

Total revenue (z∏. mln)

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

Revenue from certification

Rank

Ranked by revenue from certification in 2010

Ownership: Polish / Foreign

Top local executive / Title

115 1994

None WND

Henryk Warkocz

Anwil; Nestle; Danone; Areva; Citibank; Kompania Piwowarska; Auchan; Carrefour; Grupa ˚ywiec; Animex; ISD Huta Cz´stochowa; PKN Orlen; Zak∏ady T∏uszczowe Kruszwica; Swedwood; Jutrzenka Colian; Toruƒ-Pacific; Rawag; Polmor; Motorola; 3M Poland; ABB; ADM; Agros Nova; Alstom; Modni Packaging; Foster Wheeler; Raben; Fresh Logistic; Kamis; KGHM; Knorr-Bremse; ZPC Mieszko; Drosed; Kosmepol; PGE; Philips Lighting; Pratt-Whitney; Ricoh; Stell Gas; Soko∏ów; ThyssenKrupp; TZMO; Zak∏ady Azotowe Pu∏awy; Zbyszko; Citroen; Volvo

37 1996

None Bureau Veritas Certification Holding Bureau Veritas International - 100%

International cooperation (organizations)

Selected clients

WND

JSW; GTL

ISO 9001; ISO 14001; ISO 18001 / OHSAS; EMAS; SA8000; CSR; GRI; SMETA / SEDEX; ISO 27001; ISO 20000; BS 25999; ISO 28000; ISO 29001; TL 9000; IRIS; ISO/TS 16949; UKAS; ANAB; DAR; AS/EN 9100; TAPA; SQAS; ISO 22716; EN CEFIC; HDE; BRC; 15593; EN 15038; BRC loP; ISO 22000; PAS IATF; FoodPlus; PDV; TGA; 220 (ISO/TS 22002-1); FSSC 22000; IFS Food; SAS; SAI; DANAK; BRC Food; IFS Logistic; IFS Broker; GlobalGAP; FSC; PEFC; IRIS; MSC CoC; FAMI-QS; Q&S; IFIS; GMP+; GTP; ITSMS; ENAC; FSC CoC/FM; PEFC; GHG; JI/CDM; ISO 14064; COFRAC GIS; ISO 24510:2007; ISO 24511:2007; EU ETS Aviation; Suppliers Audits; 2nd Party Audits; Traceability Audits; Sustainability Report Assurance; ISCC; REDCert; ISO 50001

President

Bureau Veritas Certification Polska Sp. z o.o. ul. Migda∏owa 4, 02-796 Warsaw 2 22 549-0400/22 549-0410 certyfikacja@pl.bureauveritas.com www.bureauveritas.pl

WND 13.4 12.5 11.4

WND 43.1 43.7 36.4

WND 445 514 501

✓ ✓ ✓

✓ ✓ -

All sectors

DET NORSKE VERITAS POLAND BUSINESS ASSURANCE Sp. z o.o. ul. ¸u˝ycka 6E, 81-537 Gdynia 3 58 511-5020/58 511-5044 certification.pl@dnv.com www.dnv.pl

6.5 13.0 14.4 15.5

WND WND WND WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓

Healthcare; IT; telecom; energy; food industry

ISO 9001; ISO 14001; OHSAS 18001; PN-N 18001; SCC; BRC IoP; IFS; BRC; ISO 22000; ISO 27001; BS 25999; ISO 20000; ISO 13485; CE MED.; TS 16949; TL9000

WND

WND

26 1992

WND

DEKRA Certification Sp. z o.o.

Plac Solny 20, 50-063 Wroc∏aw 4 71 780-4777/78 780-4779 poczta@dekra-certification.pl www.dekra-certification.pl

5.8 10.3 WND WND

6.0 10.6 WND WND

682 1,401 WND WND

✓ ✓ ✓

✓ ✓ ✓

All sectors

ISO 9001; ISO 14001; PN-N 18001; OHSAS 18001; ISO/TS 16949; ISO 22000; HACCP; IFS; GMP; ISO 27000; ISO 9100; ISO 22716; ISO 20000; ZKP; SCC/VCA; REDcert; ISCC; Clean Treatment; EuropeSPA; external audits; mystery shopper audits; IRIS; PN-EN 15038; SQAS; PNEN 15593; CE; GS; KEMA-KEUR

DEKRA

Philips; Bosh; ABB; LG Electronics; Polkomtel; Polimex-Mostostal; Mota Engil; Kappa; HDI; Rossmann; Carrefour; Eurocash

42 2001

None DEKRA - 100%

Roman Zadro˝ny

H. Cegielski - Poznaƒ; Apator; Klimor; Gdynia Maritime University; Gdaƒsk City Hall; The Marshall’s Office of Zachodniopomorskie Voivodship in Szczecin; Silesian Center for Heart Diseases in Zabrze

25 1994

Treasury - 100% None

Jacek Papiski

WND

WND 1993

WND None

Bogdan Sperski President

Tomasz Gasiƒski President

President

Polski Rejestr Statków SA – Biuro Certyfikacji Systemów Zarzàdzania Al. Gen. Józefa Hallera 126, 5 80-146 Gdaƒsk 58 751-1273/58 341-7749 dc@prs.pl www.prs.pl

2.5 4.0 4.5 4.5

WND WND WND WND

1,972 1,931 1,866 1,720

✓ ✓ ✓

✓ ✓

Mining; construction; transport equipment; trade; accomodation and services; ISO 9001:2008; ISO 14001:2004; PN-N Germanischer Lloyd tax activities; finance and 18001:2004; PN-EN ISO 22000:2006; EMAS; Industrial Services insurance; real estate; PN-ISO/IEC 27001:2007; PN-EN ISO 3834; PN- Polska; Bureau Veritas administration; metal industry; EN 16001:2009; ISO/TS 16949:2002; PN-EN Certification; LRQA machinery; electronic and ISO 9001; PN-EN ISO/IEC 13485:2005; PN-EN Polska; DET NORSKE optical equipment; IT; 45011:2000 VERITAS Polska healthcare; social services; agriculture; food industry

Instytut Nafty i Gazu ul. Lubicz 25A, 31-503 Kraków 6 12 421-0033/12 421-0050 office@inig.pl www.inig.pl

0.6 1.2 1.2 0.9

0.6 1.2 1.2 0.9

66 140 98 107

✓ -

✓ ✓ -

Type Examination Certificates; Management Gas industry: installation and ECSystem Certificates; Certificates of Factory equipment; water supply Production Control; Certificates of Conformity; fittings; chimneys Security and Quality Certificates

WND

BSI Group Polska Sp. z o.o. ul. Królewska 16, 00-103 Warsaw NR 22 330-6180/22 390-4470 infopoland@bsigroup.com www.bsigroup.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ -

ISO 9001; ISO 14001; EN 16001; ISO 50001; GHG; CHP; ISO 18001/OHSAS; EMAS; SA8000; CRS; ISO 26000; ISO/IEC 27001; ISO/IEC 20000; BS 25999; ISO/TS 16949; ISO 13485; ISO 22000; PAS 99; PAS 220; IFS; TL 9000; SRA; ISO 29001; IRIS; CCA; AS9100; AS9120; ISO 20252

WND

WND

27 1999

None British Standards Institution - 100%

Joanna Baƒkowska

Centrum Certyfikacji ul. Kobierzyƒska 58/40, 30-363 Kraków NR 12 266-1470/12 266-1470 certyfikacje@gmail.com www.certyfikacje.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓

GOST R; UkrSepro; Ex; RTN; certificates of Documentation for exporters compliance for the mining industry; metrological to Russia and Ukraine certificates; fire certificates; sanitary certificates

ICSTI

WND

WND WND

WND

WND

Instytut Zaawansowanych Technologii Wytwarzania ul. Wroc∏awska 37A, 30-011 Kraków NR 12 631-7100/12 633-9490 ios@ios.krakow.pl www.iztw.krakow.pl

WND WND WND WND

WND WND WND WND

96 269 220 209

✓ ✓ ✓

✓ -

Machinery and devices

Certificates of Conformity; Security and Quality Certificates

WND

WND

WND 1949

Ministry of Economy 100% None

Maria Zybura

TUV SÜD Polska Sp. z o.o. ul. Podwale 17, 00-252 Warsaw NR 61 850-7408/61 855-7652 tuevpolska@tuevpolska.pl www.tuevpolska.pl

WND WND WND WND

WND WND WND 7.6

1,447 1,413 1,038 WND

✓ ✓ ✓

✓ ✓ -

All sectors

ISO 9001:2008; ISO 14001:2004; BS OHSAS 18001:2007; ISO/TS 16949; HACCP; ISO 22000; IFS; BRC; GMP+; FAMI-QS; GlobalGAP; ISO 27001; IRIS

IATF; DAR; DAKKS; BRS

WND

46 1998

WND TUV SUD

Krzysztof Jankowski

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

All sectors

Director

Maria Ciechanowska Director

Managing Director

Director

President

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.

LIFESTYLE Concert

Seasonal flavors in old Warsaw three courses, with a further z∏.40 for a beverage package that includes wine.

Mr Oszczyk is reluctant to pigeonhole his style of cooking, which contains elements of different, mainly European cooking. “French cuisine is where I get the basic techniques, but I also take a lot from Italian cuisine,” he said.

He is also not afraid to use contrasting flavors and ingredients. A dish combining fresh cod with spices, herbs and vegetables used in Thai cooking featured on the menu recently, for example.

A sweet-yet-sharp chocolate mousse with raspberries, pumpernickel bread and beer sorbet, meanwhile, testifies to

A new restaurant review feature from WBJ La Rotisserie ul. KoÊcielna 12 mamaison.com/warsawleregina-hotel.html Situated in Warsaw’s New Town, La Rotisserie provides an intimate yet refined setting for a business lunch.

Although the restaurant’s lunch menu changes frequently, it is always prepared with a strong seasonal bias – colorful, fresh vegetables are prominent in the spring while more hearty, meat-based dishes are served in the winter.

Autumn is now well under way, and head chef Pawe∏ Oszczyk is keen to reflect that in the menu. Offerings such as a succulent loin of rabbit wrapped in cabbage leaves, creamy pumpkin soup with Saint Jacques, and warm plum tart have all featured recently on the restaurant’s lunch menu.

Lunch is priced at z∏.80 for

Are you gonna go his way?

Mr Oszczyk’s penchant for experimentation.

La Rotisserie is one of the few restaurants in Warsaw that serves wine made in Poland.

Sourced from Sandomierz and Zielona Góra, the wine offered by the restaurant is served both by the bottle and glass.

A five-course “linner” is offered by the restaurant every Sunday between 1 pm and 5 pm at a price of z∏.175 per head.

The restaurant is also currently preparing for the festive season and plans to hold its popular New Year’s Eve gala once again this year.

Lenny Kravitz November 9, Torwar ul. ¸azienkowska 6A, Warsaw Singer-songwriter and multiinstrumentalist Lenny Kravitz is coming to Poland as part of his European tour to promote his ninth studio album “Black and White America,” a record that goes back to the traditions of 1970’s American funk music. In addition to new songs, fans can expect to hear the New Yorkborn artist play his most wellknown hits, including “American Woman,” “Fly Away,” and “Are You Gonna Go My Way.” Tickets for the event are priced from z∏.154. ● For more information log on to torwar.cos.pl

Gareth Price

Reservations: 22 531 60 42, reception.leregina@mamaison.com

COURTESY OF LA ROITSSERIE

Loin of rabbit wrapped in cabbage leaves

No ordinary concert Sade November 11, Atlas Arena al. Bandurskiego 7, ¸ódê Nigerian-born soul singer Sade comes to Poland for the first time in order to promote her latest album “Soldier Of Love.”

The winner of three Grammys and one Brit Award will perform timeless classics such as “Smooth Operator,” “No Ordinary Love” and “Your Love is King” as well as songs from her latest offering. Tickets for the concert start at z∏.259. ● For more information log on to atlasarena.pl

Legendary jazz sounds Pat Metheny Trio November 9 PKiN Sala Kongresowa Pl. Defilad 1, Warsaw

Sade

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl COURTESY OF KONGRESOWA.PL

Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl

Pat Metheny

Galeria 65 ul. Bema 65 www.galeria65.com

Concert

Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com

Political soul singer

Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu

Aloe Blacc November 9 Klub Palladium ul. Z∏ota 9, Warsaw

Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl

Aloe Blacc difficult combination of creating mass appeal while maintaining artistic integrity. ●

For more information log on to palladium.art.pl

COURTESY OF WIKIMEDIA COMMONS

Described by the artist as “music in favor of social change,” soul singer Aloe Blacc manages to meld funky tunes with politically engaged lyrics, and is set to provide an entertaining night at one of Warsaw’s premier concert venues. His breakout hit “I Need a Dollar” has already racked up close to 17 million views on YouTube, which proves Blacc has achieved the

Lenny Kravitz

Concert

Concert

Having cut his teeth alongside musical greats including Herbie Hancock, Milton Nascimento and David Bowie, multiple Grammy award winner Pat Metheny is regarded as one of the foremost jazz guitarists in the world. He has been touring the globe since 1974 and has racked up an average of 120140 shows a year. For this concert he will be accompanied by jazz double-bass player Larry Grenadier and drummer Bill Stewart. ● For more information log on to kongresowa.pl

OCTOBER 31 – NOVEMBER 6, 2011

COURTESY OF WIKIMEDIA COMMONS

www.wbj.pl

COURTESY OF SONY MUSIC

22

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

OCTOBER 31 – NOVEMBER 6, 2011

www.wbj.pl

23

Tech Eye

Techeye reaches into the mailbag

Dabiel wrote to us about the Zeta Zero, a line of high-end speakers from Polish audio equipment-maker TR Studios (www.audio-high-end.com). This is a

relatively young enterprise, but it’s clear that Tomasz Regula, founder of the firm and a sound engineer by trade, has ambitious plans. His website, while still a work in progress, promises an impressive 12 language options, including Arabic, Hebrew, English and “United States.”

Pictured is the Venus Picolla model from the Zeta Zero line, a speaker capable of blaring out 120 decibel of sound pressure. That’s about as loud as a vuvuzela or an American tourist in Rome.

The Venus Picolla speakers are currently available at select audio-equipment shops in Warsaw as well as online. Price ranges from z∏.24,000-60,000 and three finishes are available: “bronzemahogany transparent,” “black” and “sahara.” If anyone’s interested in seeing the speakers up close, they’ll be on display at Audio Show 2011, taking place November 12-13 in Warsaw.

This week’s other product recommendation came from a reader who asked to remain anonymous.

For simplicity’s sake, we’ll call her “Mom.” Technically “Mom” told us about the Lytro (www.lytro.com), a new light field camera from the eponymous American tech firm, a long time ago. But that was before the company actually had the product ready. That didn’t stop “Mom” from pestering us about the Lytro, though. Week after week, all we heard was, “Why haven’t you written about it yet?” and “What’s the matter, are you too busy to write about it?” and “Doesn’t this skin tag look like the Virgin Mary?”

So Techeye is finally writing about the Lytro. Happy “Mom”? Really, are you happy now?

At first glance, the Lytro looks more like a kaleidoscope or the kind of flashlight you find in a duty-free catalog. That’s because the technology inside – which we won’t pretend to fully understand – demands a long casing rather than a wide one.

But the rectangular-ness of the Lytro isn’t why it’s generating major buzz. The main selling point is that instead of focusing before you take a picture, you do this afterwards, focusing on whatever you want.

Also, because no auto-focus motor is

necessary, there’s no shutter delay.

The upshot is that the internet will probably be inundated with baby and/or pet pictures, as those creepy people who spend hours trying to take silly photos (which they then spam unfortunate family and friends with) finally achieve a measure of success.

COURTESY OF LYTRO

depths of cyberspace or a human being who struggles to spell his own name. Either description matches our readership.

In any case, friend

COURTESY OF TR STUDIOS

This week marks a milestone in Techeye’s professional life, an event so momentous that we’ve actually written a journal entry about it. That might not seem significant to you, but consider this – the last time something journal-worthy happened was in 1988.

The passage in question reads: “Best day ever. Tommy puked on Sarah Pinkus after lunch and pepperoni chunks were stuck to her forehead.”

What could top that? Well, here’s a short list: Being elected grand poobah of the Isle of Muck. Inventing a delicious, nutritious form of dust. Gaining society’s approval to live in a polyamorous relationship with a women’s volleyball team.

Sadly, none of those things have happened yet. But we’re still excited to announce that this week, for the first time ever, Techeye is featuring reader-submitted gadgets.

The first of these was brought to our attention by a reader who might be a sentient-but-deranged algorithm making contact from the

Currently the Lytro comes in three variants: graphite or electric blue, both of which have 8 GB of memory (enough for 350 photos), and red hot, with 16 GB (750 photos). The former run $399, the latter $499.

Techeye might even pick one of these up, if only to document our life-long quest to create delicious, edible dust. ●

Ever lived in a polyamorous relationship with an entire sports team? Let us know: techeye.wbj@gmail.com