WBJ #3 2013

Bungled bonuses

A matter of culture

Parliamentarians awarded themselves some huge bonuses – and outrage ensued

An exclusive interview with Culture Minister Bogdan Zdrojewski

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VOLUME 19, NUMBER 3 • JAN 28 – FEB 3, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

The BPO boom

COURTESY_STARWOOD HOTELS

REAL ESTATE

• Pró˝na revived • Bristol’s prestige • Griffin interview

Since 1994 . Poland’s only business weekly in English

Poland is Europe’s top outsourcing destination.

Find out why in this special WBJ report 11-14

15-17

In this issue

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News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .10 Outsourcing in Poland . . . . . .11-14 Lokale Immobilia . . . . . . . . . .15-17 Markets . . . . . . . . . . . . . . . . . . . . .19 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Crafty Cameron

No flight plan

The British Prime Minister is gambling on an EU referendum for the UK

Candidates are lining up to pilot troubled state-owned airline LOT, though there is no plan to save it 5

3

NEWS

www.wbj.pl

2.3% is how much Polish GDP expanded in 2012, according to Economy Ministry estimates.

z∏.3.1 billion is how much Polish energy giant PKN Orlen will spend on capital expenditures in 2013.

83 was how old Cardinal Józef Glemp, head of the Polish Catholic Church from 1981-2009, was when he died last week.

After Palikot’s Movement (RP) withdrew its support for Wanda Nowicka as its Deputy Speaker of the Sejm, the search for her replacement began in earnest. Apparently, Anna Grodzka, who is currently the only transgender MP in the world, is at the top of the list.

“It’s not an official candidacy right now. We don’t have one yet. But from an ideological standpoint, it would be a good choice,” Janusz Palikot, leader of RP told TVN24. He added that the decision on his party’s candidate for deputy speaker will be announced on Thursday.

According to a poll by TNS Polska, support for Civic Platform, the senior member of Poland’s ruling coalition, fell by five percentage points month-on-month to 29% in January.

Support for opposition party Law and Justice was at 23%, down by three points m/m. In the same period, support for the Democratic Left Alliance grew by three points to 10%. Palikot’s Movement and the Polish People’s Party each saw their support grow by one percentage point to 7%. ●

of the Polish parliament, it’s difficult to imagine that Ms Grodzka’s candidacy would be accepted without opposition.

The question is whether there will be enough opposition to block her candidacy altogether.

Traditionally, each party in the Sejm is allowed one deputy speaker post. However, all candidates must be voted in by a majority of MPs. If Ms Grodzka’s candidacy were rejected, RP would have to propose another candidate.

Wanda Nowicka lost her party’s support after she accepted a controversial z∏.40,000 bonus (see story, p. 4).

Quote of the Week “I don’t want to have to explain for shameless greed.”

Deputy Prime Minister, Economy Minister and leader of the Polish Peoples’ Party (PSL) Janusz Piechociƒski took to Facebook to express his reaction to news that Poland’s parliament had awarded itself roughly a quarter of a million z∏oty in various bonuses.

Figures in focus Deep in debt Government debt to GDP ratio, Q3 2012 (in %), selected EU countries 200

150 *Highest in the EU **Lowest in the EU

Jacek Ciesnowski 100

Calendar

January 29 Event:

Location:

Web:

30 Event:

Location:

Web:

February

INTERNATIONAL CONSTRUCTION FAIR BUDMA 2013

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The fair’s theme is “Construction of the Future. Intelligent Architecture.” It will host, among other things, a testing zone with presentations of tools, products and machinery, this year’s building premieres as well as talks by internationally renowned architects.

Poznaƒ International Fair, ul. G∏ogowska 14, Poznaƒ budma.pl

Event:

NEW REGULATIONS ON RENEWABLE ENERGY SOURCES This seminar will discuss new regulations on wind and solar energy and their implications for renewable energy investment projects, from the design, financing and network connection to the legal and tax aspects.

Polish French Chamber of Commerce, ul. Widok 8, Warsaw ccifp.pl

Location:

Web:

INTLLECTUAL PROPERTY RIGHTS MANAGEMENT This seminar will address issues of intellectual property rights such as: developments in cloud computing and their legal consequences, risks of cross-border contracts and resolving disputes.

TGC Corporate Lawyers, 11th floor, Terraces Conference Center, Crown Tower, ul. Hrubieszowska 2, Warsaw bpcc.org.pl

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CUT COSTS WHILE CREATING JOBS!

Event:

This conference, organized by the British Polish Chamber of Commerce, presents the Labor Office of the City of Warsaw as a reliable partner of every employer. Employers will learn how to get refunds for equipping newly created work stations, or reimbursements for employees’ salary and social security contributions.

BPCC in Warsaw, Al. Szucha 3/14 bpcc.org.pl

Location: Web:

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What will be the consequences of Mr Cameron’s promise of a referendum on EU membership for Britain? Peter Sutherland, chairman of Goldman Sachs International, talks about that and the chances of a new EU treaty being passed. Read more on WBJ.pl.

Ire

David Cameron’s euro-nemesis

50

ug

On WBJ.pl

ly

According to CBOS, 70% of Poles have a positive view of the president’s work, while 18% have a negative view. Compared to data from a survey in December, support for the president has grown by eight percentage points, while the number of opponents has fallen by seven points.

Support for biggest political parties falls

Ms Grodzka confirmed that her name is in the running, but said she doesn’t know yet if she will accept the offer if it is made.

“I’m involved in many projects and activities that I don’t want to quit,” she said. “Being deputy speaker means accepting lots of new responsibilities, and I have to see if I can manage handling all of them.”

“Everyone knows that Grodzka is not controversial, except that I exist, and I am who I am,” she added. “But these controversies are old. I think the Sejm has gotten used to me and so has society.”

Given the current realities

Ita

Komorowski’s approval rating at 70%

is the number of Polish soldiers who have now died in Afghanistan since the beginning of Poland’s military mission in the country after Captain Krzysztof Woêniak was killed in action last week.

Por t

Poland’s Treasury Ministry sold an 11.75% stake in the country’s largest bank, PKO BP. The stake was sold at z∏.34.25 per share in a bookbuilding process completed on Wednesday.

About half of the shares were bought by Polish investors, the Treasury said. The proceeds from the sales of the stake are to support the government’s Inwestycje Polskie (Polish Investments) spending program.

35

Anna Grodzka

*

Treasury sells 11.75% PKO BP stake

Numbers in the News

ece

Cardinal Józef Glemp, head of the Catholic Church in Poland from 1981 to 2009, died late Wednesday night. He had suffered from lung cancer and died in hospital. He headed the church through the 1980s, when martial law was declared in Poland and when later changes led to the collapse of communist rule. Cardinal Glemp retired in 2009 at the age of 80.

IN THE SPOTLIGHT

Gre

Cardinal Józef Glemp dies

JANUARY 28 – FEBRUARY 3, 2013

COURTESY OF WIKIMEDIA COMMONS

2

Source: Eurostat

Company index Accreo ......................................................15

MPOWERD................................................23

Amazon ......................................................5

New Direct................................................14

APA Wojciechowski ..................................15

Oktawave ....................................................6

Asseco Poland............................................5 Austrian Airlines ........................................5 Bank Austria Creditanstalt AG ..................7 Bank Ochrony Ârodowiska ......................16

OP Architekten ........................................15 Orange........................................................9 Orange Polska..........................................19

Bank Zachodni WBK..................................7

Peter Nielsen & Partners..........................6

Bloomberg..................................................5

PGE ..........................................................19

CBOS ..........................................................2

PKN Orlen ..................................................2

Citi Handlowy ............................................9

PKO BP ..........................................2, 16, 19

Colliers International ..............................16

Polnord ....................................................15

Cushman & Wakefield ............................16 Ernst & Young ............................................5 Eurolot ........................................................5

PORR ..................................................15, 16 PwC ............................................................5

Europlan ..................................................16

PZU ........................................................7, 9

Everest Group ..........................................11

Schoenherr ..............................................15

Fortum........................................................5

Solid Security ..........................................15

France Info ................................................3

Starwood Hotels & Resorts ....................16

Frontex......................................................16

Stewart Title ............................................15

Gartner ......................................................6

Swiss ..........................................................5

Ghelamco ................................................16 Globe Trade Centre ..................................15 Griffin Group ............................................17

Sybil Develeopment ................................17 Sybilgroup ................................................17

Griffin Real Estate....................................16

Tacit Development Polska ......................17

HAPILABS ................................................23

TNS Polska ................................................2

Ipopema Group ........................................15

TOK FM ......................................................3

IVG ............................................................15

TOR ............................................................5

Ivona Software ..........................................5

TVN24 ........................................................2

Jones Lang LaSalle ................................16 KGHM ..................................................6, 19 Kompania W´glowa ..................................5 Krosno ........................................................7

Warimpex ................................................15 Wielkopolski Bank Kredytowy ..................9 WSE ......................................................7, 15

Kulczyk Holding ........................................9

X-Trade Brokers ......................................19

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

YouGov ........................................................3

Modzelewski & Rodek ............................16

ZETO Bydgoszcz ........................................5

NEWS

JANUARY 28 – FEBRUARY 3, 2013

www.wbj.pl

EU affairs

UK headed for EU exit?

David Cameron stirred a hornet’s nest with his promise of a referendum on EU membership for his country. Across Europe, reaction came swiftly Europe à la carte European leaders were quick to react to Mr Cameron’s words. “We can’t have Europe à la carte. Imagine the EU was a football club: once you’ve joined up and you’re in this club, you can’t then say you want to play rugby,” French Foreign Minister Laurent Fabius told the France Info radio station.

Guido Westerwelle, his German counterpart, was also critical. “Germany wants the United Kingdom to remain an active and constructive part of the EU. But cherry picking is not an option,” he said.

Poland’s foreign minister, meanwhile, struck a markedly different tone. “I don’t think the role of Poland should be to

“The UK has moved from being a natural member of the triumvirate that could lead the EU, to country that needs to be petted so that it does not do something unwise.”

– Polish Foreign Minister Rados∏aw Sikorski would take place by 2017 at the latest.

“While the EU is in flux, and when we don’t know what the future holds and what sort of EU will emerge from this crisis is not the right time to make such a momentous decision about the future of our country,” Mr Cameron said.

join the chorus of critics,” Rados∏aw Sikorski said in an interview with TOK FM. “Britain is a country that is home to hundreds of thousands of Poles. We share the philosophy of the free market with them and most importantly, we are in the middle of difficult EU budget negotiations.”

COURTESY OF THE BRITISH PRIME MINISTER’S OFFICE

British Prime Minister David Cameron sparked controversy last week by announcing that he favored giving UK citizens a referendum on whether the country should remain in the European Union. “I believe in confronting this issue – shaping it, leading the debate. Not simply hoping a difficult situation will go away,” Mr Cameron said.

According to a January survey by YouGov, some 55 percent of Britons now want their country to exit the EU. Mr Cameron plans to wait until after the UK’s next parliamentary elections, scheduled for 2015. If his party keeps power, he said he would set the referendum process in motion, meaning the vote

British Prime Minister David Cameron has pledged to hold a referendum on the UK’s membership of the EU if his party wins the next parliamentary elections In fact, Mr Sikorski seemed to sense a chance for Poland after Mr Cameron’s controversial speech. “With that speech, David Cameron has moved his country in the EU hierarchy. From a natural member of the triumvirate which could lead the EU, to a ‘special care’ country, which needs to be petted so that it does not do something unwise,” Mr Sikorski said.

He added that in his view “at the end of the decade Poland could be in the group of three to five countries that will have the biggest say in the EU.”

Negative consequences Pawe∏ Tokarski, an analyst at the Polish Institute Of Interna-

tional Affairs, was less sanguine. “Let’s face it, Poland does not have the strength of the UK, which is a member of the UN Security Council, has nuclear weapons and boasts a much stronger economy than Poland,” he told WBJ. Mr Tokarski thinks a British exit would have negative consequences for Poland. “Up till now, Britain has been treated by Poland as a counterbalance to Germany and France, especially now that France is weakening. Also, Britain is Poland’s ally on issues of defense, the internal market and protest against some Southern European countries’ wishes of a more socially oriented economy.”

However, he said he believes there is only a 10 percent chance that Britain will exit the EU.

The German view Importantly for Mr Cameron, Angela Merkel, Germany’s chancellor and Europe’s most powerful leader, said she wants to see a “fair compromise” with the UK on EU reforms.

“Germany, and I personally, want Britain to be an important part and an active member of the European Union. We will talk intensively with Britain about its individual ideas but there is time for that over the months ahead,” Ms Merkel said.

Remi Adekoya

Poland rejects civil partnerships ‘There can be no love’ Poland’s lower house of parliament, the Sejm, has given the thumbs down to three different legislative proposals aiming to sanction civil partnerships.

One project was put together by the center-right ruling Civic Platform (PO), and the other two by the socially liberal Palikot’s Movement (RP) and the Democratic Left Alliance.

While the proposals differed in their details on issues such as whether to allow one of the partners to take on the other’s last name, all three of them granted

The debate that preceded voting was heated. “There is no doubt that there can be no love between two men or women, only friendship,” said Artur Górski, a Law and Justice MP. “But not love, especially the kind that can be found in marriage. That kind of love leads to procreation.

People of the same sex can not reproduce. Even in theory.”

Wincenty Elsner, a member of parliament from RP retorted, “You need to be cured of homophobia and intolerance.”

But there were opponents

in the ruling party itself, which had after all submitted its own legislation on the issue.

Justice Minister Jaros∏aw Gowin, a conservative PO politician, said in parliament that all three legislative proposals were in breach of the Polish constitution.

Captain Krzysztof Woêniak, a member of the Polish special forces unit GROM, was killed in action in the Ghazni province in Afghanistan.

Captain Woêniak was in action when insurgents opened fire, killing him and wounding several others. Thirty-five Polish soldiers have been killed in Afghanistan since the beginning of Poland’s military mission in the country. Captain Woêniak was the first Polish special forces soldier to be killed there.

‘Raucous laughter’ But the leader of his party, Prime Minister Donald Tusk, quickly disavowed those words saying, “this is only Mr Gowin’s personal opinion, and not the official position of the government.”

Mr Tusk himself is a proponent of civil partnerships and appealed for a sense of decorum during the debate. “This is a very delicate and difficult matter for many people. It shouldn’t trigger raucous

Poland’s state investment program Inwestycje Polskie is most likely to finance projects planned by large companies coowned by the state, daily newspaper Dziennik Gazeta Prawna reported.

According to information obtained by the newspaper, projects worth a total of z∏.42 billion went through the first stage of the program’s decisionmaking process.

Wages rise 2.4% in 2012 The average gross monthly salary rose 2.4% year-on-year to z∏.4,111.69 in December 2012, according to Poland’s statistics office GUS. Compared with November’s data, salaries rose 8.8%. GUS also said that 5.47 million people were employed in Polish enterprises in December, 0.5% less than a year earlier and 0.4% less than in November.

More fathers on paternity leave

SHUTTERSTOCK

alimony benefits to civil partners. None of the three proposals included adoption and citizenship rights or joint tax breaks.

Polish soldier killed in Afghanistan

Investment program to favor state firms

LGBT issues

Legislative proposals to enshrine civil partnerships in Polish law have been struck down

3

Same sex couples won’t receive similar rights to married couples laughter.”

In the end, PO’s proposal came closest to passing, win-

ning 211 votes in the 460member Sejm.

Jacek Ciesnowski

According to data from the Social Insurance Institution, 28,600 fathers went on paternity leave in 2012. In 2011, the number was 14,900 and in 2010 it was 17,200. The increase is believed to be the result of social changes and the fact that the leave cannot be transferred to the child’s mother. ●

4

NEWS

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Parliamentary politics

Politics

An ‘unfortunate’ decision

Ar∏ukowicz survives no-confidence vote

A deputy parliamentary speaker is set to lose her post over a controversial bonus

Punishment and reward At first, Ms Kopacz defended her decision. “Parliament is a place where laws are made first and foremost but it is also a

COURTESY OF WIKIMEDIA COMMONS

Opposition party Palikot’s Movement (RP) has announced that it is withdrawing its support for Wanda Nowicka as deputy speaker of Sejm after she accepted a controversial z∏.40,000 bonus.

In total, Sejm Speaker Ewa Kopacz and her five deputies received z∏.245,000 in bonuses for their work last year. Ms Kopacz, who awarded the bonuses, received z∏.45,000, while her deputies got z∏.40,000 each.

The bonuses were widely criticized in the media and Janusz Piechociƒski, the Polish Peoples’ Party leader, even talked about “shameless greed.”

The news sparked outrage because, for months now, politicians have been telling the Poles how serious the current economic crisis is only for some of them to turn around and award themselves significant bonuses.

The health minister gets to keep his job, just barely

Wanda Nowicka got z∏.40,000, but lost her deputy speaker post workplace. I have the right, in fact I am obliged, to judge my workers, reward those who work well and punish those who worked worse,” she said.

But the story refused to go away. Finally, last Thursday, RP withdrew its support for Ms Nowicka, who had accepted the bonus.

“It is a difficult decision. We hold Wanda Nowicka in the highest regard,” said Janusz Palikot, leader of RP. “Never-

theless, because of our fundamental principles, we decided that we have to give a strong signal to Poles that we are not here for money or positions.”

“In this situation, we have to be uncompromising,” he added. Mr Palikot said his party would now deliberate on who to recommend for the vacant post. By now, the other deputy speakers were saying they would hand over their bonuses to charity.

A closed matter PM Donald Tusk weighed in on the matter. “The decision to award bonuses to parliament’s presidium was unfortunate. If politicians are not able to guarantee people salary raises, they should not be awarding themselves bonuses,” said Mr Tusk.

He added however, that in his opinion, the matter was now “closed” and he was impressed at the swift decision to give the money to charity. RA

Last Friday, the Sejm, Poland’s lower house of parliament, rejected a motion to relieve Health Minister Bartosz Ar∏ukowicz of his duties by a razor-thin margin of 232 votes to 220.

The no-confidence vote was brought forward by the largest opposition party Law and Justice (PiS), which claimed that Mr Ar∏ukowicz was carrying out a “terrible health policy.”

All of the opposition parties in parliament supported the motion, but it still came up short as the Civic PlatformPolish Peoples’ Party coalition effectively defended their minister.

Political games “Attempts to have Mr Ar∏ukowicz lose his ministerial post are typical political games and not a serious debate about health care,” Prime Minister Donald Tusk said just before the vote.

The flaws highlighted by the opposition include long queues in hospitals, financial

problems at specialist clinics, higher drug prices and shortages in chemotherapy treatment medicines.

Mr Ar∏ukowicz countered by saying the opposition should not “scare” patients. “I will not allow you to use patients and children in a political debate and to tell patients to be scared,” Mr Ar∏ukowicz said in a speech to parliament.

Strong criticism Bartosz Ar∏ukowicz has been health minister since 2011. He was once a left-leaning politician affiliated with the Democratic Left Alliance but decamped two years ago to join the ruling party.

He received strong criticism at the beginning of last year after a poorly executed prescription-drug reform triggered chaos and protests in the health sector.

In the 2012 Health Barometer survey, which covered nine European countries and the US, Poles proved to be the least satisfied with the health care system in their nation. On a scale of 1 to 10 (worst to best), Poles rated their health care system at 2.6.

Remi Adekoya

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BUSINESS

JANUARY 28 – FEBRUARY 3, 2013

www.wbj.pl

Airlines

Amazon acquires Polish company

Is LOT worth saving?

The beginning of 2013 hasn’t been great for LOT. Its new Dreamliners were grounded after technical problems arose.

It’s not clear when they will be allowed to fly again.

The z∏.400 million LOT received from the state recently was designated as a loan, and will have to be paid back. What could be worse for the company is unconfirmed reports from Brussels that the European Commission won’t allow the state to further assist the company.

“The European Commission won’t allow the government to help LOT with state

Global online retailer Amazon has acquired Polish company Ivona Software for an undisclosed amount.

Ivona Software is the developer of text-tospeech technology used by telecoms, banks and other companies.

Amazon has been using the firm's technology for some time already, after it bought a license to use it on Kindle tablets.

funds. For its new members, the EU has a much stricter approach,” said Andrzej Sadowski from the Adam Smith Institute in an interview with Polish Radio.

Not much going for it One of the latest ideas for saving the carrier from going under is moving its assets to another state-owned carrier – Eurolot, Rzeczpospolita reported. LOT doesn’t actually own much, other than its logo and airport slots (a time window for planes to take off and land). Its planes are rented and its headquarters has been sold.

“A similar plan was used in Swiss and Austrian Airlines, however it took longer than a month or two, which could be all the time LOT has left,”Adrian Furgalski of transport consultancy TOR told

COURTESY FO WIKIMEDIA COMMONS

Nearly 30 potential candidates for the position of CEO and still no plan in sight for saving the national carrier

Asseco takes over IT firm

Still flying, but for how long?

Money.pl.

The reported plan sounds radical, but it could help restructure the company and reduce employment. Current employees would have to accept Eurolot’s conditions to keep their jobs.

But that’s only a proposal.

“The government is making final decisions about what to do with the company, Ernst & Young has been hired to write another plan on how to save it, and we don’t even have a new CEO,” said Mr Furgalski.

“Potential candidates can’t even have their own plan to save LOT, because they will be forced to implement a plan handed to them,” he added.

There are currently 27 candidates for LOT’s CEO posiJacek Ciesnowski tion.

Economic forecasts

Steady, then slower growth A new study shows that Poland’s economy will grow until 2030, and will then begin slowing down A recent report by consultancy firm PwC has a special feature on Poland as the leading economy in the CEE region. According to the data presented in its “The World in 2050” report, Poland should continue to catch up to its more powerful neighbors (Germany, Russia) in the coming years, but demographic issues, among others, will slow down the process.

Poland’s average annual GDP growth from now until 2050 will be 2.5 percent, according to the PwC report. That would be lower than the average 3.3 percent growth Poland has seen since 1990.

But most economies grow at a slower rate as they get richer.

And relative to Germany,

Poland’s largest trade partner, the Polish economy is still expected to grow at an impressive clip. In 1990, when Poland’s market reform process began, Polish GDP per capita was only 8 percent of Germany’s. Currently the figure is 25 percent and in 2030 it should be 34 percent, the study finds.

Falling behind As for now, Poland boasts the 18th-largest economy in the world with $813 billion in GDP. In 2030 the Polish economy will fall to 19th-largest globally, with a GDP of $1.4 billion. By 2050, Poland will drop out of the list of the 20 biggest economies in the world altogether.

The reason for the slowdown is mostly demographics. In 2035, the number of Poles of working age (15-64) will drop 14 percent from where it currently stands. It also has one of the lowest fertility rates in the EU (1.3 children born

New World Order How the world’s biggest economies will change over the next couple of decades

2050

2011 Rank

Country

GDP in $ billions (PPP value)

Rank

Country

Projected GDP in $ billions (PPP value)

1.

US

15,094

1.

China

53,856

2.

China

11,347

2.

US

37,998

3.

India

4,531

3.

India

34,704

4.

Japan

4,381

5.

Germany

3,221

4.

Brazil

8,825

6.

Russia

3,031

5.

Japan

8,065

7.

Brazil

2,305

6.

Russia

8,013

8.

France

2,303

7.

Mexico

7,409

9.

UK

2,287

8.

Indonesia

6,346

9.

Germany

5,822

10.

France

5,714

...

18.

Poland

813 Source: World Bank

per woman in her child-bearing years). Plus, it’s not an attractive place for immigrants because of low salaries, the report finds.

Save and invest PwC analysts suggest Poles

Source: PwC

should start saving and investing, and not rely on foreign direct investment. Poland’s average current account deficit since 2004 has been 4.5 percent of GDP, but despite this, total national investment was only at

21.4 percent of GDP (as compared to 23.8 percent in Germany). This is not sustainable if Poland wants to remain a relatively high-growth economy in the long run.

Jacek Ciesnowski

Poland’s business environment improving The CEE’s largest economy is now the 20th-best place in the world in which to do business, according to a recent Bloomberg survey which ranked 161 economies. The result means Poland has moved up two places compared to last year’s ranking.

Analysts ranked countries on criteria that included the cost of starting a business, the cost of labor and materials and the cost of moving goods. The study also considered each country’s level of global eco-

nomic integration, its consumption levels, inflation and accounting standards.

Poland received 69.7 points out of a maximum of 100. The best performers were Hong Kong, the US and Japan. In the CEE region, Hungary came in far behind Poland, in 31st place.

However, the Bloomberg survey did not focus on issues like excessive bureaucracy, which is a common complaint among investors in Poland. In the World Bank’s Doing Busi-

ness 2013 ranking, Poland fared much worse, coming in 55th out of 185 countries ranked.

That ranking did note however that progress had been made when it comes to certain aspects of doing business in Poland, mostly with the introduction of new institutional and regulatory reforms. In fact, the World Bank stated that Poland was the “global top improver” when comparing its business environment to RA the previous year.

5

Best Countries for Business 2013 (Bloomberg)

Country

Rank

Country

Rank

Hong Kong

1

Poland

20

Germany

5

China

24

United Kingdom

10

Hungary

31

France

14

India

54

Spain

16

Russia

56 Source: Bloomberg

Asseco Poland, a major Polish IT solutions provider present on international markets, has agreed to acquire IT firm ZETO Bydgoszcz for z∏.87.72 million. Asseco will buy 100 percent of ZETO's stock from 98 shareholders. ZETO Bydgoszcz is an IT services provider for public administration (including local divisions of the Social Insurance Institution) and industrial companies.

Kompania W´glowa to issue bonds Poland's largest coal mining group Kompania W´glowa (KW) will issue bonds worth z∏.1 billion in 2013, the firm's CEO Joanna Strzelec¸obodziƒska told Rzeczpospolita. The company will use the issue proceeds to finance investments such as exploration work in the Lubelskie region, which is to continue for the next two years. KW is also in talks with two potential business partners from Asia on a joint venture intended to build a power plant.

Fortum halts z∏.2.5 bln in investments Finnish utility group Fortum has decided to suspend its two Polish investments due to uncertainty over planned changes in Polish law on renewable energy. The company planned to spend z∏.2.5 billion on building a 400 MW gasfueled power plant in Wroc∏aw and a cogeneration unit in Zabrze. ●

6

BUSINESS

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Economic relations

Mongolia beckons Poland is no accident that Mr Elbegdorj talked up his country’s minerals sector while in Poland – natural resources are driving Mongolia’s growth. It’s likely Mongolia has its eye on Polish coal mining companies, or on mining giant KGHM, one of the world’s largest producers of silver and copper.

The mining industry produces 22 percent of Mongolia’s GDP, according to data provided by the Mongolian Ministry of Mining. Minerals make up an 89 percent share of Mongolian exports and they account for 70 percent of tax revenue.

The country has rich mineral deposits, including gold, copper and coal. So far $22 billion has been invested in Mongolia by foreign mining companies, none of which came from Poland.

But this might change soon.

“We’re ready to provide machinery, build mines and to educate local personnel,” said Maciej Kaliski, a director in the mining department of the Min-

Time is of the essence But time is of the essence for those interested in making money in Mongolia, especially in its energy sector.

In 2015, the world’s largest coal mine will be opened in Tavan Tolgoi, Mongolia. Its deposits are estimated at 6.4 billion metric tons and could last 400 years. The Mongolian government is currently issuing mining permits to foreign companies.

“If the world’s mining giants don’t invest in Mongolia in the next two years, it will be impossible for them to become a major player here,” Thomas Trappe, advisor to the biggest Mongolian mining consortium, MAK, told the Polish Press Agency.

Mongolian officials plan to use this opportunity to lessen the country’s dependency on Russia and China. The country’s huge neighbors are its

Contact: Miros∏aw Stefanik ms@pnplaw.pl

In the resolution of January 17, 2013 (III CZP 57/12) the Supreme Court addressed two legal issues relating to the increase of the initial capital of a limited liability company (Sp. z o.o.).

One question was whether the right to increase the initial capital of a limited liability company without amending the company’s articles of association may only be exercised in case of creating new shares.

The other issue was whether in case of an increase in the initial capital conducted in the above manner, the newly created shares have to be acquired by all existing shareholders proportionally to the number of shares they already hold, or whether the preemption rights of the existing shareholders may be done away with by a board resolution unless the company’s articles of association stipulate otherwise.

In the opinion of the Court, an increase of the initial capital on the basis of the articles of association may be performed in one of the two ways: either by an increase of the nominal value of the already existing shares or by the creation of new shares. In the latter scenario, new shares may only be acquired by the shareholders in proportion to the shares they have held so far.

New Act on Waste Disposal From January 23, 2013 the new Act on

biggest trade partners.

“Mongolia is a democratic country, which has a freemarket economy, dominated by private capital. Our neighbors don’t have economies

based on the same rules,” said Ch. Otgochuluu, from the Mongolian Ministry of Mining.

He did admit however, that it was Russia and China’s

“public companies who invest the most in our mining sector.” Maybe that will change soon.

Jacek Ciesnowski

Technology

Legal News

Increase of initial capital in limited liability company – Supreme Court’s resolution

The Tavan Tolgoi mine in Mongolia

Waste Disposal of December 14, 2012 has been in force. The Act defines the obligations of waste producers, waste holders managing the waste, sellers and sales agents as well as the obligations of public administration authorities.

The Act introduces new definitions and stipulates the rules of classifying and handling the waste as well as several new legal solutions including, first of all, the solutions emphasizing the need to prevent waste production and facilitating their recycling

Transfer of phone number within 24 hours From January 21, 2013 amended provisions of the Telecommunications Law have been in force empowering consumers even more than before. Pursuant to the new provisions of the Telecommunications Law, the term of a consumer’s first telecommunications services contract concluded with a given service provider for a definite period of time may not be longer than 24 months.

Moreover, the transfer of a phone number to another phone network should be completed within one business day of the day indicated in the telecommunications services contract. If the network fails to meet the deadline, the phone subscriber is entitled to a one-off compensation for each day of the delay in the amount of one-quarter of his or her total monthly charges. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Reaching for the clouds A Polish company wants to compete with global giants in a fastgrowing business sector Cloud computing, to put it simply, is a service that provides customers a virtual space for bandwidth or storage. It can have many uses, like running software, or routing internet traffic, or even hosting whole websites on outside servers called “clouds.” And since data and traffic consumption is increasing rapidly, some companies might choose to outsource their web services instead of upgrading their infrastructure.

In a study conducted by Parallels, the market for cloud services amongst small and medium-sized businesses in Poland was worth z∏1.15 billion in the spring of 2012. Over the next three years it should reach z∏.2.4 billion, with 67 percent of companies planning to outsource their IT tasks.

In 2013, the global cloud computing market will be worth $150 billion, and in 2014, 60 percent of internet traffic will be routed through virtual clouds, according to technology research firm Gartner.

Meanwhile, the European Commission forecasts that from now till 2020, 2.5 million new jobs will be created in the

SHUTTERSTOCK

During a visit to Poland last week, Mongolian president Tsakhiagiin Elbegdorj called for Polish investment in his country’s energy sector, touting Mongolia’s record as the fastest-growing economy in the world.

“Poland also has coal reserves and this is an occasion to exchange experiences, use your coal-extraction technology, especially because during socialism, Polish mine experts used to come to Mongolia. We want to refresh our relations and adapt them to to the new times,” said Mr Elbegdorj.

That will take some work.

In 2011, Polish exports to Mongolia were worth $8 million, a modest sum considering the fact that the Asian country’s economy grew by 17.5 percent that year. And since Mongolia’s GDP could expand by as much as 23 percent in 2013, according to the IMF, Polish businesses may finally want to take notice.

istry of Economy, during Mr Elbegdorj’s visit. Also, over 200 companies from Poland and Mongolia took part in a special business forum attended by the Mongolian president.

COURTESY OF WIKIMEDIA COMMONS

Will Polish companies Gone unnoticed? invest in the fastest Polish exports to Mongolia growing economy in the mostly comprise foodstuffs, but there may be room for more. It world?

The market for cloud services amongst SMEs in Poland should reach z∏.2.4 billion by 2015 cloud computing sector.

Head in the clouds When Oktawave, a Polish cloud service, offered a free trial service in spring of last year, nearly 1,500 companies signed up. On the first day of commercial use, back in November of 2012, 10 percent of them switched to a paid model. The company’s CEO, Maciej Kuêniar, however, won’t reveal official data on earnings.

“They’re not impressive right now, but we plan on being profitable in Q3/Q4 of 2013,” he told Gazeta Wyborcza. That’s when the company wants to expand to other countries, and their priority

markets are Germany, France, Spain and the Czech Republic.

Oktawave claims speed amongst its biggest advantages. Octawave’s internal tests showed that its product is twice as fast as that of most major companies. The company sees its location as an advantage as well – all of the firm’s servers are located in Poland, so all the data will be stored and regulated according to Polish and EU law.

So far, the project has cost z∏.4.5 million, with z∏.800,000 coming from EU funds. The global leaders in cloud computing are Amazon, Microsoft and Rackspace.

Jacek Ciesnowski

FINANCE & ECONOMICS

JANUARY 28 – FEBRUARY 3, 2013

Euro adoption

President: Poland could be ready for euro in 2015 In an interview for television channel TVP 1, President Bronis∏aw Komorowski said that Poland should be able to fulfill the euro zone’s convergence criteria by 2015.

“Today instead of considering theoretical matters, such as taking decisions about Poland’s membership in the euro zone, we should concentrate on the first phase: fulfilling the requirements to join the euro zone ... because they are good for Poland,” said Mr Komorowski.

Mr Komorowski has said adopting the European common currency will be a good move for Poland and will strengthen its political position.

Currently, out of five euro convergence criteria, Poland only meets one – its debt-toGDP ratio is below 60 percent.

Regarding any eventual euro adoption process itself, the president said it should be launched after parliamentary elections in 2015. “Maybe it is such an important issue that I will call a Cabinet Council. I will discuss this with the prime minister,” said Mr Komorowski.

COURTESY OF THE EUROPEAN PARLIAMENT

Still, the government has made it clear that it has set no concrete date for adoption yet

President Komorowski says Poland could begin euro adoption procedures after elections in 2015 Cabinet Council?

A Cabinet Council can be called to discuss crucial issues of the state. It is made up of the Council of Ministers and the president, who chairs the meetings. A Cabinet Council cannot make binding decisions, but only serves to support and advise the government.

In December last year, Prime Minister Donald Tusk made the case that Poland would soon have to make a decision on whether or not to join the euro zone, saying, “If

we do not make a decision in the coming months about the direction we want to take, then it may be too late.”

Finance Minister Jacek Rostowski said at the time that Poland would be ready to announce a timetable for joining the euro zone when it is sure it would be able to keep to such a schedule.

its veto power. “We want to receive as much money as we can, but we must be realistic,” he said, adding that he doesn’t plan on taking part in further negotiations on this topic.

“I did what was in my power, and I hope that it will help reach compromise.”

Remi Adekoya

www.wbj.pl

7

Retail sales fall 2.5% in December Poland’s statistics office GUS revealed last week that retail sales in Poland in December 2012 fell by 2.5 percent yearon-year and rose by 15.1 percent month-on-month. Economists had forecast that December retail sales would rise 1.2 percent y/y and 19.1 percent m/m. GUS also said that retailers’ turnover fell by 2.9 percent y/y in December.

Commenting on the data, Bank Zachodni WBK economists wrote: “December’s data about retail sales show that private consumption growth decelerated sharply at the end of last year, which was driven by a drop in real

income and the uncertain situation in the labor market.”

They see this as a confirmation of GDP growth slowing down to 1.8 percent in 2012.

During the global economic crisis in 2009, robust retail sales in Poland were credited with keeping the country’s economy out of recession. Though it had been expected to slow down in December, following a trend that started in the middle of last year, many analysts were negatively surprised that retail sales actually lost value year-on-year.

KW, AK

Unemployment at 13.4% in December In December 2012, the registered unemployment rate was 13.4 percent, the Poland’s statistics office GUS said. The figure was 0.9 percentage points higher than in December 2011 and 0.5 points higher than in November 2012.

The number of registered

unemployed persons was 2.136 million. The last time that the unemployment rate was this high was in February 2012.

Poland’s unemployment rate has remained above 12 percent for 13 straight months now.

KW, AK

No veto to budget Regarding ongoing negotiations on the 2014-2020 EU budget, President Komorowski said that Poland shouldn’t use

WSE holds historic 5,000th session It took nearly 22 years for the Warsaw Stock Exchange to reach its milestone 5,000th session, but they were an eventful 22 years. At the first session on April 16, 1991, only five companies were listed and 112 transactions amounting to z∏.1,990 ($2,000) were carried out.

Today, the WSE’s main index, the WIG, lists 439 companies with a total capitalization of more than z∏.765 billion. This makes Warsaw’s stock exchange the biggest in the CEE region. Since the first trading session, the WIG index has increased from 1,000 to 47,900 points.

During its first year, there was only one session per week.

The WSE started trading daily in October of 1994. In 2003, the first foreign company was listed on the WSE – Bank Austria Creditanstalt AG. Today, 43 foreign companies are listed on the exchange.

The best year for the WSE

was 2007, when all the main indices reached their highestever values. For the WIG, the record was set on July 6, 2007, at 67,568.51 points. This was also the year of the highest number of IPOs on the main market.

The busiest day of the WSE was on May 12, 2010, when

PZU’s IPO, the biggest in the bourse’s history, took place.

The value of trade was over z∏.3.3 billion, including z∏.2.5 billion in PZU shares.

Another record is held by Krosno, whose share price grew by 2,411 percent in 1993.

JC

Growing value Level of the main-market WIG index at the end of each year, 1991-2012

60,000 50,000 40,000 30,000

Karpielówka Restaurant Our name comes from an area in Zakopane, and in our restaurant you can feel the air and the atmosphere of the Tatra Mountains.

With our original highlander décor and the climate of an outlaw’s cottage, it’s the perfect place to dine on traditional dishes including our specials: dumplings, knuckle baked with onion, dishes with oscypek cheese and much more.

We can organize wedding dinners, conferences and banquets, as well as picnics with BBQ and bonfire. Check our lunch menu, our delivery service and catering options.

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10,000 0 91 2 3 4 5 6 7 8 9 00 01 02 03 04 05 06 07 8 09 10 11 12 19 199 199 199 199 199 199 199 199 20 20 20 20 20 20 20 20 200 20 20 20 20 Source: Warsaw Stock Exchange

www.karpielowka.com.pl | Check our Facebook page

8

INTERVIEW

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Culture

Minister of Culture and National Heritage Bogdan Zdrojewski sits down with WBJ to talk about his ministry’s priorities, defending culture from politics, the position of Polish culture at home and abroad, and how it is financed Ewa Boniecka: Political tensions have begun to enter the domain of culture, and the country’s budget is tighter than when you first took office. How are these factors affecting your ministry’s work?

Bogdan Zdrojewski: My job is to defend culture from politics, and nothing has changed on this front. I also try to maintain the priorities that I consider most important for preserving and promoting culture in the longerterm perspective. Among these, the first priority is investment in cultural infrastructure and overcoming years of enormous neglect.

The second priority is cultural and artistic education, which means upgrading audiences’ understanding and artists’ conditions, especially during study. The third priority is the protection of national heritage, particular-

ly those things which are most important for Poland’s national identity and history.

How do Poland’s expenditures on culture look? Some complain that there is too little money spent on it.

Expenditures on culture have increased over the last five years from around z∏.9.5 billion to z∏.12.7 billion – that includes all financial expenditures: those coming from the Ministry of Culture, local governments, public institutions and private sources. The funds coming from the Ministry of Culture and National Heritage have increased from around z∏.2.3 billion to over z∏.3 billion, the biggest increase in recent years.

Now spending on culture is 0.80 percent of budgeted expenditures, while five years ago it was 0.57 percent.

You have made a concerted effort to develop private sponsorship of culture in Poland. What results have you achieved?

Everything here begins and ends with building mutual trust. The public administration, including the Ministry of Culture, has to respect the prerogatives and also the needs of private businesses.

At the same time, it is important that private business learns to look at culture as something worth investing in. So my first step was to begin building mutual trust and arguing that relations between business and culture will bring mutual benefits.

This is especially important because from the fiscal point of view there is little incentive for the state to invest in culture. Taxpayers have the option of donating 1 percent of their income tax payments to a particular cultural institution. In the past people very rarely took advantage of this option, but now there is a positive trend.

In my view it is crucial to pay attention to businesses’ specific interests when it

COURTESY OF DANUTA MATLOCH

Bringing Polish culture to the world

Bogdan Zdrojewski, Poland’s Minister of Culture

INTERVIEW

JANUARY 28 – FEBRUARY 3, 2013

comes to sponsoring culture.

These interests include strengthening a given business’ brand and increasing its public standing. Potential cultural partners need their donations to be acknowledged.

It seems to me that I have been successful in creating an environment that is favorable for encouraging companies to invest in and sponsor cultural institutions and events. Among the larger sponsors are such firms as Orange, PZU, Wielkopolski Bank Kredytowy, the private holding represented by [business mogul] Jan Kulczyk.

Are foreign firms that operate in Poland interested in investing in Polish culture?

One steady foreign investor is [Bank Citi Handlowy’s] Kronenberg Foundation, which has been sponsoring Polish culture for many years. We also have support from some foundations and private sponsors to help in caring for historic Polish cemeteries, famous historical institutions – such as the Polish Library in Paris and the Museum and Polish Library in Rapperswil, Switzerland – which are important for our culture and heritage and are also significant in terms of European history. But we are still way behind in attracting international sponsorship for historical monuments.

What is Poland doing to promote its culture abroad?

In promoting Polish culture abroad we have reached a real breakthrough. The Adam Mickiewicz Institute, which is the main institution responsible for promoting our culture abroad, has changed enormously. When we compare what was done to promote Polish culture abroad five years ago and how the situation looks now, I would say we went through revolutionary changes.

The Adam Mickiewicz Institute applied the strategy of concentrating on specific goals and achieving them at the highest professional level, instead of conducting limited activity in many fields.

The new strategy has resulted in such successes as the Year of Polish Culture in Israel in 2008, the Year of Polish Culture on the British Isles, and the Year of Chopin, which was regarded throughout the world as the one of the best cultural promotions. It successfully promoted our art, music and theater during Poland’s presidency of the EU. The Year of Czes∏aw Mi∏osz, our great contemporary poet, has just ended and we managed to encourage

and partly finance translations of his poetry into languages such as Chinese and Arabic, in which Mr Mi∏osz’s verse had previously been unavailable.

All those undertakings are bringing lasting effects and Polish culture is highly regarded and acclaimed around the world. Now we are celebrating the Year of [composer] Witold Lutos∏awski. Our artists perform in the most prestigious venues in the world, the best concert halls, the best galleries and museums.

Polish culture is being seen and heard in places it never has been before. For the first time in 70 years we had exhibitions – three of them – in the Pushkin Museum in Moscow. Currently, we are conducting talks concerning bringing a large exhibition of Polish classical painters to the State Hermitage Museum in St. Petersburg, as well as an exhibition of Polish art at the National Museum of China in Beijing. In 2012, the MOMA in New York had a large exhibition of sculptures by Alina Szapocznikow.

Would you say that promoting cultural exchange with countries that we have sometimes had difficult relations with can be a vehicle for reducing political tensions?

In promoting our culture abroad, we have to be strictly professional in dealing with foreign institutions and artists. Culture can always be a leader in improving relations, both political and economic.

You say that you defend culture been from politics. But there have been political attacks on the film “Poklosie,” which some have called anti-Polish, and some protest the Polish Film Institute’s co-financing of a movie about the 2010 Smolensk catastrophe. How do you see the situation?

I have said that I defend culture from politics, but that does not mean that politicians do not attempt to use culture for political gain.

The directors of these films have the right to realize their artistic visions.

When their films’ screenplays are accepted, they can ask for public funds to produce them. Those decisions are made by a group of independent reviewers at the Polish Film Institute, and it is the minister of culture’s job to protect those independent decisions. The minister has nothing to do with the final decision about whether a film is granted public funding.

The Museum of the History

of Polish Jews in Warsaw is now in its final stage of construction. When is it expected to open?

I am convinced that the museum should open only once every detail has been completed. That’s why I never announced a specific date for its opening. I would say that there is a good chance it will open between 12 and 18 months from now.

This particular museum is a very complex project. In my view it could be very difficult to hold the opening by the end of 2013, so sometime in 2014 is more likely.

How would you evaluate your ministry’s cooperation with local governments in caring for and developing culture?

Some 68 percent of expenditures on culture come directly from local governments. I can say that my cooperation with local governments is good, or even very good. Recently, we accomplished the enormous task of providing access to broadband internet in all of Poland’s libraries in towns with less than 15,000 inhabitants. We were able to achieve this goal in cooperation with Orange, and the access will be free for five years.

Due to cooperation with some foreign entities, among them the Bill and Melinda Gates Foundation, we were able to provide all those libraries with computers. This is evidence of our very good cooperation with the lowest levels of local government.

Yet public television and radio, which are sometimes the only sources of information and culture for some people in poor regions of the country, are now near collapse. You have promised to help them financially, but that won’t solve all their problems, especially since most people don’t pay the obligatory subscription fees for public media. Is there a solution?

First, I want to stress that Polskie Radio [Polish public radio] is doing quite well. It looks like 2012 will be the first year in recent history that Polskie Radio will have a positive balance.

We are trying, in accordance with the current possibilities of the state budget, to guarantee modest financial help for public television, so it can carry out its mission.

We are also working to change the present system for paying fees and to introduce a simpler, more modern and cheaper subscription fee.

I also want to add that in 2012, the ministry financed many cultural programs. ●

www.wbj.pl

9

10

OPINION & ANALYSIS

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Europe’s soft power?

T

he worst years of the Iraq War were boom times for European triumphalists. I remember going to conferences in Europe in the middle of the last decade when one Brussels Eurocrat after another spoke with barely concealed arrogance about Europe’s moral superiority to the United States. Whereas the United States, with its so-called muscle-bound military, was bogged down in an unwinnable violent conflict in Mesopotamia, proving the limits and pitfalls of an over-reliance on hard power, Europe was basking in the worldwide influence of its soft power, built on suave diplomatic and regulatory compromise and the humaneness of the social welfare state.

Indeed, it is the economic decline of this very model – that of the European social welfare state – over the past few years that now threatens Europe’s soft power and, therefore, its own moral conception of itself. Soft power, as defined by Harvard political scientist Joseph Nye Jr. is, among other things, the power to persuade in a media-driven world. And for Europe, such power ultimately came from its economic and political model.

The welfare panacea In “Postwar: A History of Europe since 1945” (2005), the late New York University historian Tony Judt documents how the state – the modern welfare state – which reached its apogee in

and Steel Community of the early Cold War days and the European Common Market (European Economic Community) of the middle ones, was the supreme culmination of social welfare economics and international legal and diplomatic norms within the Continent. Because France and Germany had been repeatedly at war over the previous century, the European Union would henceforth bind them together through common economic and fiscal interests. And from the reconciliation between those two giants, unity would radiate throughout Europe.

But it all rested, in varying degrees, on a prosperous social welfare state.

the 1960s and early 1970s, was seen back then as the decisive bureaucratic panacea to Europe’s horrific recent past. The response to the mass killings of two world wars – in terms of government policy – was a benevolent administrative order that “would always do a better job than the unrestricted market” in protecting people’s interests, in dispensing social justice and allowing for “cultural vitality.” The state, as Mr Judt describes the halcyon middle decades of the Cold War in Western Europe, “lubricated the wheels of commerce, politics, and society in numerous ways.”

The full-bodied administrative state was until recently instantly appealing, not only to Europeans themselves but to American tourists, who came from a land of embarrassingly poor train and bus service, slummy big-city airports and decaying highways and bridges – not to mention poor public service in general – and found in places like France, Germany and the Netherlands a paradise of sleek trains, postmodern air terminals and wondrous nighttime lighting across bridges and along highways.

The European state with its high taxes could certainly deliver, it seemed. It was why conservative politicians in Europe were often proudly to the left of liberal politicians in the United States.

The European Union itself, which grew out of the Franco-German Coal

‘European standards’ That is why the European debt crisis is so troubling. It is troubling not just in an economic and political sense, but in a moral sense as well. Europe could bounce back much quicker than expected – economists have been proven wrong before. More likely, however, the euro zone on the whole will be sunk in zero growth rates or thereabouts for a few years to come, with consequent cuts in social benefits and continued high unemployment.

And if that happens, the legitimacy of both the European Union and the social welfare model will continue to erode, whittling away the very basis of European soft power and, perhaps, the norms of behavior that such soft power

Robert D. Kaplan

has represented.

Poland especially offers the most poignant example of why such norms are vital to peace. In “The Reconstruction of Nations,” Mr Snyder meticulously narrates how Polish thinkers and officials had made a conscious choice toward the latter years of the Cold War to accept Poland’s eastern borders with the Soviet republics of Lithuania, Belarus and Ukraine, assuming, as they did, that the Soviet Union would collapse and those republics would become independent states. This was, as he explains, an extraordinary decision after a fashion, because it meant dropping historical claims to ethnicPolish lands to the east of the current Polish state. Concomitantly, Poland asked Germany to make no such claims on historic German lands in western Poland. However brutal and unfair were the border arrangements that were the outgrowth of Nazi and Soviet aggression in World War II, Polish officials decided not to question them. And the overpowering force helping them toward such brave, conciliatory thinking and diplomacy was the example of “European standards” that were, in turn, the outgrowth of the economic and cultural experience of postwar Europe as chronicled by Mr Judt in his own book.

In other words, peace in Eastern Europe following the collapse of the Berlin Wall depended on applying the diplomatic rules of Western Europe.

And the diplomatic rules of Western Europe had long been fortified by the very success of the European welfare project as a whole, in all its economic and integrationist manifestations.

No gloating But now Eurocrats can no longer gloat about the European Union’s soft power and its consequent moral superiority compared to the United States. The American economy is chugging along nicely at 2.7 percent annual growth – around 2.7 percent higher than Europe’s. Whereas America’s economic problems are mainly political – the difficulty Republicans and Democrats often have in reaching efficient compromises – Europe’s problems are more fundamental and structural: the very viability of the euro zone and the enormous promises to the citizenry implied by the welfare state model.

Yet, this is no reason for Americans to gloat either. No one should want to see the continued erosion of European institutions and models, for that will negatively affect the very attraction of European civilization in the 21st century world: a civilization built on tolerance in the late-20th. ● Robert D. Kaplan is Stratfor’s chief geopolitical analyst.

This edited version of “Europe’s soft power?” is republished with permission of Stratfor.

Stratfor.com

Lessons from the fiscal cliff

O

ne of the many things I learned from Milton Friedman is that the true cost of government is its spending, not its taxes. To put it another way, spending is financed either by current taxes or through borrowing, and borrowing amounts to future taxes, which have almost the same impact on economic performance as current taxes.

We can apply this reasoning to the United States’ unsustainable fiscal deficit. As is well known, closing this deficit requires less spending or more taxes.

The conventional view is that a reasonable, balanced approach entails some of each. But, as Mr Friedman would have argued, the two methods should be considered polar opposites.

Less spending means that the government will be smaller. More taxes mean that the government will be larger.

Hence, people who favor smaller government (for example, some Republicans) will want the deficit closed entirely by cutting spending, whereas those

who favor larger government (for example, President Barack Obama and most Democrats) will want the deficit closed entirely by raising taxes.

As the economist Alberto Alesina has found from studies of fiscal stabilization in OECD countries, eliminating fiscal deficits through spending cuts tends to be much better for the economy than eliminating them through tax increases.

A natural interpretation is that spending adjustments work better because they promise smaller government, thereby favoring economic growth.

Method matters For a given size of government, the method of raising tax revenue matters.

For example, we can choose how much to collect via a general income tax, a payroll tax, a consumption tax (such as a sales or value-added tax), and so on.

We can also choose how much revenue to raise today, rather than in the future (by varying the fiscal deficit).

A general principle for an efficient tax system is to collect a given amount

of revenue (corresponding in the long run to the government’s spending) in a way that causes as little distortion as possible to the overall economy. Usually, this principle means that marginal tax rates should be similar at different levels of labor income, for various types of consumption, for outlays today versus tomorrow, and so on.

From this perspective, a shortcoming of the US individual income-tax system is that marginal tax rates are high at the bottom (because of means testing of welfare programs) and the top (because of the graduated-rate structure). Thus, the government has moved in the wrong direction since 2009, sharply raising marginal tax rates at the bottom (by dramatically increasing transfer programs) and, more recently, at the top (by raising tax rates on the rich).

One of the most efficient tax-raising methods is the US payroll tax, for which the marginal tax rate is close to the average rate (because deductions are absent and there is little graduation in the rate structure). Therefore, cut-

ting the payroll tax rate in 2011-2012 and making the rate schedule more graduated (on the Medicare side) were mistakes from the standpoint of efficient taxation.

Republicans should consider these ideas when evaluating tax and spending changes in 2013. Going over the “fiscal cliff” would have had the attraction of seriously cutting government spending, although the composition of the cuts – nothing from entitlements and too much from defense – was unattractive.

The associated revenue increase was, at least, across the board, rather than the unbalanced hike in marginal tax rates at the top that was enacted.

Cut government But the most important part of the deal to avert the fiscal cliff was the restoration of the efficient payroll tax. I estimate that the rise by two percentage points in the amount collected from employees corresponds to about $1.4 trillion in revenue over 10 years. This serious revenue boost was not counted

Robert J. Barro

in standard reports, because the payroll-tax “holiday” for 2011-2012 had always been treated legally as temporary.

It is true that some macroeconomic modelers, including the Congressional Budget Office, had forecast that going over the cliff would have caused a recession. But those results come from Keynesian models that always predict that GDP expands when the government gets larger. Entirely absent from these models are the negative effects of more government and uncertainty about how fiscal problems will be resolved.

Another recession in the US would not be a great surprise, but it can be attributed to an array of bad government policies and other forces, not to cutting the size of government. ● Robert J. Barro is professor of economics at Harvard University and a senior fellow at the Hoover Institution, Stanford University.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

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Millions of euro, thousands of jobs

List of BPO companies

How outsourcing became the most popular sector for FDIs in Poland

Comprehensive directory of business process outsourcing centers 12-13

14

OUTSOURCING

W a r s a w B u s i n e s s J o u r n a l ’s s p e c i a l re p o r t o n o u t s o u rc i n g i n P o l a n d

JANUARY 28 – FEBRUARY 3, 2013

Business services

Poland’s BPO boom At the beginning of December 2012, employment in business service centers in Poland reached 100,000. The Association of Business Service Leaders in Poland (ABSL), an organization representing 70 foreign and Polish investors from the business services sector, forecasts that this year

employment will grow to 120,000.

“100,000 employees in the business services sector is a great success as well as an ideal platform for future development. We expect that the sector will grow by a further 15 to 20 percent year-onyear,” said Jacek Levernes, president of ABSL.

Becoming a global leader ABSL predicts that in 2013 Poland will strengthen its number-one position in Europe and compete for the title of global business-service

Big names, big BPO centers The largest foreign employers in the business services sector in Poland in 2011 Investor France Telecom Capgemini IBM General Electric Hewlett Packard Bertelsmann Media Nokia Siemens Networks Citi Group Shell Accenture Infosys Tieto State Street Sabre Mellon

Location several cities Kraków, Katowice, Wroc∏aw Kraków, Wroc∏aw, Gdaƒsk, Warsaw Gdaƒsk, Warsaw, ¸ódê Wroc∏aw Poznaƒ, Szczecin and other cities Wroc∏aw, Kraków Warsaw, Olsztyn, ¸ódê Kraków Warsaw, ¸ódê ¸ódê Wroc∏aw, Szczecin Kraków Kraków Warsaw, ¸ódê

Employment bracket 6,000-6,5000 4,000-4,500 3,500-4,000 3,000-3,500 2,000-2,5000 2,000-2,500 2,000-2,500 1,500-2,000 1,500-2,000 1,000-1,500 1,000-1,500 1,000-1,500 1,000-1,500 1,000-1,500 1,000-1,500 Source: ABSL

leader. Poland is able to host all types of service centers.

Facilities already existing and operating in the country are well-equipped and specialists working in them have the appropriate resources and knowledge, ABSL says. That allows them to manage the most advanced and complex business processes.

“There is no other country in the world that offers the business service sector such versatile solutions. We are able to handle virtually any process in one of several dozen foreign languages,” said Marek Grodziƒski, a vice president at ABSL. “Although in terms of scale we cannot compete with countries such as India and China, we are a global leader in both the diversity and quality of services that we are able to provide,” he added.

Centers located in Poland provide advanced business services in such areas as: advisory and consulting services, customer service, delivery-chain management, finance and accounting, financial audit, human resource management, IT services, marketing, research and development and tax services.

Why Poland?

In light of the recent economic crisis, foreign companies are looking to reduce costs. That’s why they often decide to relocate their services to other countries that have a stable macroeconomic situation but where the labor costs are lower. The average salary in a Polish BPO center stands at $17,000-18,000 a year.

In comparison, the average salary for a programmer in a Vietnamese BPO is $11,300 per year, according to Economist Intelligence Unit data for 2011. In India, the figure stands at $10,100.

Poland’s strengths are an army of highly qualified specialists and its central location in Europe. Its developing infrastructure of modern office space meets the requirements of corporations from the business services sector.

The quality of the Polish labor market is one of the major reasons the business services sector invests in the country. It’s not just that Polish workers are well-educated, but they also have high levels of foreign-language competence, say investors.

In 2010, Everest Group announced that in terms of the availability of specialists and

SHUTTERSTOCK

Poland has become the most prominent European center for BPOs – and employment in the sector hit 100,000 last year

100,000 jobs have been created in Polish business service centers experts from the business services sector, Poland ranked second in the world, just behind India.

“Many countries have developed a particular specialization within the sector,” Przemys∏aw Berendt, a vice president at ABSL, explained.

“However, because of the versatile competence profile of Polish specialists, investors from different markets decide

to locate their centers here.

[Polish] experts provide services to clients from various sectors, in many languages.”

Marta Mardosz

In this supplement BPO boom . . . . . . . . . . . . . . . . . . . . .11 BPO companies . . . . . . . . . . . . .12, 13 Poland’s most popular sector . . . .14 New Direct interview . . . . . . . . . . .14

12

OUTSOURCING

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Corporate Services

Business Process Outsourcing Companies Ranked by total revenue from outsourcing in 2011; presented separately for each specialization A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

www.bookoflists.pl

Rank

Revenue split (%) Company name Address Tel./Fax e-mail Website

Total revenue HR and IT / Total revenue payroll / from Logistics / (z∏. mln) outsourcing Accounting / Back-office (z∏. mln) Marketing/ sales 2011 / 2010 / 2009

Selected clients

Total number of employees / Year founded in Poland

Ownership: Polish / Foreign

Top local executive / Title

6 2 -

Keeping records of employees’ personal data; keeping and updating personal files of employees; archiving personal files of former employees; job and other legal contracts; handling the records of time worked and absences; calculating wages; preparation of documents and settlements for ZUS, GUS, US, PFRON; payroll strips and ZUS RMUA forms preparation; transferring payments to employees’ accounts and their documentation; annual tax returns; monitoring the validity of medical examination and safety training; HR and payroll documents audit; taking over the responsibility to state administration organs

WND

6,000 1990

Impel - 100% None

Grzegorz Tyszka

-

Keeping records of employees’ personal data; keeping and updating personal files of employees; archiving personal files of former employees; serving of work and other legal contracts; handling the records of time worked and absences; calculating wages; preparation of documents and settlements for ZUS, GUS, US, PFRON; payroll strips and ZUS RMUA forms preparation; transferring payments to employees’ accounts their and documentation; annual tax returns; monitoring the validity of medical examination and safety training; HR and payroll documents audit

Aegon; Naj International; Apsys

40 1998

Kajetan Edward S∏onina Jacobus Wim Van Den Broek

Kajetan Edward S∏onina

-

Keeping records of employees’ personal data; keeping and updating personal files of employees; archiving personal files of former employees; serving of work and other legal contracts; handling the records of time worked and absences; wage calculation; preparation of documents and settlements for ZUS, GUS, US, PFRON; payroll strips and ZUS RMUA forms preparation; transferring payments to employees’ accounts and their documentation; annual tax returns; monitoring the validity of medical examination and safety training; HR and payroll documents audit

WND

67 2004

None UCMS GROUP EMEA Limited - 100%

Telesales; business appointments; market research; marketing research; lead generation; SMS/MMS/e-mail/viocemail UEFA; Kapsch; Makro Cash & campaings; loyalty programs; customer service, helpline; help Carry; mBank; Grupa Orange desk; databases; social media; call/contact center

607 1999

TP Invest - 99.9% None

Jakub K∏oczewiak

Citi Bank; Coty; Dr Oetker; Lindt; Mars; Na∏´czowianka; Nestlé; Tesco; Unilever

WND 2001

Outsourcing Experts WND

Artur Wojtaszek

Marcin Pankau

Services offered (main specialization)

MAIN SPECIALIZATION: HR AND PAYROLL

Impel Business Solutions Sp. z o.o. ul. Antoniego S∏onimskiego 6, 50-304 Wroc∏aw 1 71 784-6370/71 784-6337 cc.info@impel.pl www.impel.pl

Randstad Payroll Solutions Sp. z o.o.

Al. Jerozolimskie 56C, 00-803 Warsaw 2 22 462-2500/22 462-2600 firma.RPS@pl.randstad.com www.randstad.pl

UCMS Group Poland Sp. z o.o.

Al. Jerozolimskie 181, 02-222 Warsaw 3 22 329-2700/22 329-2701 info.pl@ucmsgroup.com www.ucmsgroup.pl

74.7 69.8 56.8

9.1 8.3 8.5

9.0 7.8 7.1

WND WND WND

9.1 8.3 8.5

9.3 8.6 7.8

82 7 1

100 -

98 2 -

President

Board Member

Jan Palmkvist; Anna Agnieszka Kaczmarska, Ludmi∏a Kobyliƒska CEO; Proxies

MAIN SPECIALIZATION: MARKETING/SALES

Contact Center Sp. z o.o. ul. Muszkieterów 15A, 02-273 Warsaw 1 22 535-7900/22 535-7910 info@contactcenter.pl www.contactcenter.pl

246.0 276.0 217.0

246.0 276.0 217.0

95

5

Cursor SA ul. Poleczki 23, 02-822 Warsaw 2 22 335-2424/22 335-2425 biuro@cursor.pl www.cursor.pl

83.5 81.6 WND

83.5 81.6 WND

WND WND WND

WND WND WND

37.8 38.9 14.5

37.8 38.9 14.5

5 70

15 10

Telesales; business appointments; market research; marketing research; lead generation; SMS/MMS/e-mail/viocemail Netia; Skoda Polska; CP; BZ campaings; customer service, helpline; help desk; call/contact WBK center

1,200 2004

Marcin Pankau - 50%; Krzysztof Chyliƒski - 50% None

Call Center Poland SA ul. Marynarska 11, 02-674 Warsaw 4 22 444-0444/22 444-0400 info@ccp.com.pl www.ccp.pl

37.4 34.4 36.4

37.4 34.4 36.4

WND WND WND

WND WND WND

Telesales; business appointments; market research; marketing MTU Moje Towarzystwo research; lead generation; SMS/MMS/e-mail/viocemail Ubezpieczeƒ, Neste Oil, campaings; loyalty programs; customer service, helpline; help Pepsi, Danone, Carlsberg, desk; databases; social media; call/contact center BMW, Volvo, Reader’s Digest

WND 1997

Communication One Consulting - 100% None

Target BPO Sp. z o.o. ul. Wólczaƒska 241A, 95-035 ¸ódê 5 42 253-7777/42 253-7778 biuro@targetbpo.pl www.targetbpo.pl

34.7 36.0 37.7

34.7 36.0 37.7

100

-

Mars Polska; Polkomtel; Telesales; business appointments; lead generation; customer Unilever Polska; ˚ywiec Zdrój; service, helpline; help desk; databases; call/contact center Multibank

984 2003

None Red ClaNDena Limited - 81%; Speer Investment Limited - 19%

Krzysztof Twardowski

Galposter Sp. z o.o. ul. Poleczki 23, 02-822 Warsaw 6 22 335-2030/22 335-2031 kontakt@galposter.pl www.galposter.pl

22.0 20.0 WND

22.0 20.0 WND

100

-

Rebranding; direction information systems; outdoor advertising; consulting and advice on technology

Eurocash; Aviva; Auchan; Bank Pocztowy; Ergo Hestia; Mercedes-Benz; PKN Orlen; PKO BP; Ruch

130 1997

Outsourcing Experts WND

Micha∏ Zoll

Voice Contact Center Sp. z o.o. ul. Szturmowa 2, 02-678 Warsaw 7 22 255-2000/22 255-2222 info@voicecc.pl www.voicecc.pl

14.5 5.9 NA

14.5 5.9 NA

100

-

Telesales; business appointments; market research; marketing research; lead generation; SMS/MMS/e-mail/viocemail campaings; loyalty programs; customer service, helpline; help desk; databases; social media; call/contact center

Netia; Allianz; National Geographic; Cyfra +; Telewizja N; Raabe; HBO

570 2009

Outsourcing Experts WND

Adam Kotrych

Universal Agent Sp. z o.o. ul. Zab∏ocie 20/22, 30-701 Kraków 8 12 375-5900/12 375-5999 biuro@universalagent.pl www.universalagent.pl

9.1 WND WND

9.1 WND WND

WND WND WND

WND WND WND

Telesales; business appointments; market research; marketing research; lead generation; SMS/MMS/e-mail/viocemail campaings; loyalty programs; customer service, helpline; help desk; databases; call/contact center

WND

WND 2006

Grupa DataContact None

ContactPoint Sp. z o.o. ul. Marynarska 11, 02-674 Warsaw NR 22 541-9090/22 541-9091 info@contactpoint.pl www.contactpoint.pl

WND WND WND

26.9 26.7 18.8

WND WND WND

WND WND WND

Telesales; business appointments; market research; marketing research; lead generation; SMS/MMS/e-mail/viocemail campaings; loyalty programs; customer service, helpline; help desk; databases; social media; call/contact center

WND

Grupa DataContact Sp. z o.o. ul. Jagielloƒska 74, 03-301 Warsaw NR 22 763-6000/22 763-6100 kontakt@datacontact.pl www.datacontact.pl

WND WND WND

14.8 WND WND

WND WND WND

WND WND WND

Telesales; business appointments; market research; marketing research; lead generation; SMS/MMS/e-mail/voicemail campaings; loyalty programs; customer service, helpline; help desk; databases; call/contact center

Holicon Sp. z o.o. ul. Romana Maya 1/2, 61-371 Poznaƒ 3 61 664-3200/61 664-3299

holicon@holicon.pl www.holicon.pl

Loyalty programs

President

President

President

Jaros∏aw Sprzyngwald; Micha∏ Karzel President; Board Member

Vice President

President

President

Marek Kozio∏; Tomasz Turowski; Seweryn Dro˝d˝, Krzysztof Szpanelewski President; Vice President; Board Members

WND 1997

Communication One Consulting - 100% None

WND

WND 1995

Cezary Hermanowski; Andrzej Rezler GimV Belgian Investment Fund

Jaros∏aw Sprzyngwald; Micha∏ Karze∏ President; Board Member

Cezary Hermanowski President

MAIN SPECIALIZATION: LOGISTICS

Rohlig SUUS Logistics SA ul. Jana Paw∏a II 66, 05-500 Piaseczno 1 22 737-7575,/22 737-7500 office@suus.pl www.suus.pl

491.8 403.3 282.0

491.8 403.3 282.0

-

100 -

Freight transportation; warehousing; distribution; custom services; supply chain management

Philip Morris; Alcatel-Lucent; LG; Beko

870 1990

WND None

DHL Express (Poland) Sp. z o.o. ul. Osmaƒska 2, 02-823 Warsaw NR 22 565-0000/22 565-0001 centrumprasowe@dhl.com www.dhl.com.pl

WND WND WND

WND WND WND

WND WND WND

WND WND WND

Freight transportation; distribution; custom services; insurances; supply chain management

WND

5,000 2003

WND Deutsche Post International

Kuehne + Nagel Sp. z o.o. ul. Spedycyjna 1, 62-023 Gàdki NR 61 819-9100/61 817-0813 info.poznan@kuehne-nagel.com www.kuehne-nagel.pl

WND WND WND

368.5 342.4 282.3

-

100 -

Freight transportation; warehousing; distribution; custom services; fleet management; leasing; insurances; supply chain management; logistics flow analysis

Danone; Unilever; OBI; PepsiCo; Flexlink

1,800 1992

WND

Karol Miszta; Andrzej Koz∏owski; Daniel Franke; Rafa∏ Szyd∏owski Board Members

Tomasz BuraÊ President

Tobias Jerschke President

OUTSOURCING

JANUARY 28 – FEBRUARY 3, 2013

www.wbj.pl

13

Rank

Revenue split (%) Company name Address Tel./Fax e-mail Website

Total revenue HR and IT / from Total revenue payroll / Logistics / outsourcing (z∏. mln) Accounting / Back-office (z∏. mln) Marketing/ sales 2011 / 2010 / 2009

Services offered (main specialization)

Selected clients

Total number of employees / Year founded in Poland

Ownership: Polish / Foreign

Top local executive / Title

Zuzanna K∏ys

MAIN SPECIALIZATION: ACCOUNTING

Business Support Solution SA ul. Pojezierska 90A, 91-341 ¸ódê 1 42 200-7000/42 200-7432 bss@bssce.com www.bssce.com

26.9 24.1 NA

27.0 24.2 NA

14.6 85.3 -

0.1 -

Bookkeeping; accounting of fixed assets, intangible assets, equipment; preparation of tax returns and statements for external institutions; preparation of financial statements required by the law; representing the client before US, NBP, ZUS; reports and analysis; receivables monitoring

Outsourcing Experts; Pelion

334 2010

Pelion None

Mazars w Polsce (1) ul. Pi´kna 18, 00-549 Warsaw 2 22 255-5200,/22 255-5299 main@mazars.pl www.mazars.pl

12.7 WND WND

41.0 WND WND

13.4 86.6 -

-

Bookkeeping; accounting of fixed assets, intangible assets, equipment; preparation of tax returns and statements for external institutions; preparation of financial statements required by the law; representing the client before US, NBP, ZUS; reports and analysis; receivables monitoring

WND

184 1992

WND

Grant Thornton Fràckowiak Sp. z o.o., Sp.k. (2) ul. Abpa Antoniego Baraniaka 88 E, 3 61-831 Poznaƒ 61 625-1100/61 625-1101 info@pl.gt.com, www.grantthornton.pl

9.0 8.5 WND

35.4 33.8 34.6

16 84 -

-

Bookkeeping; accounting of fixed assets, intangible assets, equipment; preparation of tax returns and statements for external institutions; preparation of financial statements required by the law; representing the client before US, NBP, ZUS; reports and analysis; receivables monitoring

WND

316 1993

Grant Thornton Fràckowiak - 100 % None

Katarzyna Banach

Grupa Gumu∏ka (Grupa Gumu∏ka - Kancelaria Prawa Finansowego Sp. z o.o.; Grupa Gumu∏ka Sp. z o.o.)

4 ul. Jana Matejki 4, 40-077 Katowice 32 253-0715/32 201-1765 gumulka@gumulka.pl, www.gumulka.pl

4.5 4.2 4.0

8.6 5.9 5.4

30 45 20

3 2

Bookkeeping; accounting of fixed assets, intangible assets, equipment; preparation of tax returns and statements for external institutions; preparation of financial statements required by the law; representing the client before US, NBP, ZUS; reports and analysis; receivables monitoring

Dziennik Zachodni; Antyradio Katowice

70 1993

Rados∏aw Gumu∏ka - 99% None

Rados∏aw Gumu∏ka

Korycka, Budziak & Audytorzy Sp. z o.o. ul. Solec 22, 00-410 Warsaw 22 522-2390/22 522-2391 kba@kba.com.pl, www.kba.com.pl

2.1 2.5 2.7

3.6 4.8 5.0

12 58 -

-

Bookkeeping; accounting of fixed assets, intangible assets, equipment; preparation of tax returns and statements for external institutions; preparation of financial statements required by the law; representing the client before US, NBP, ZUS; reports and analysis; receivables monitoring

WND

36 1992

Ewa Orkwiszewska - 33.3%; Tomasz Budziak - 33.3%; Maria Korycka 33.3% None

Biuro Rachunkowe BIUREX Sp.c. Ryszard i Micha∏ Cieliba∏a 6 ul. 1 Maja 103, 25-614 Kielce 41 335-8383/41 335-8380 info@biurex.pl, www.biurex.pl

1.9 1.9 1.8

1.9 1.9 1.8

24 76 -

-

Bookkeeping; accounting of fixed assets, intangible assets, equipment; preparation of tax returns and statements for external Autofenix; Nowbud; Aluco; institutions; preparation of financial statements required by the Spaw-Tech law; representing the client before US, NBP, ZUS; reports and analysis; receivables monitoring

31 1991

Ryszard Cieliba∏a - 50%; Micha∏ Cieliba∏a - 50% None

Ryszard Cieliba∏a; Micha∏ Cieliba∏a

0.7 0.8 0.8

0.7 0.8 0.8

15 80 -

5

Bookkeeping; accounting of fixed assets, intangible assets, Hillard; Apli equipment; preparation of tax returns and statements for external Fleishman Polska; Fast Poland; institutions; preparation of financial statements required by the Vivarto; Plastoplan; Navitor law; representing the client before US, NBP, ZUS; reports and Poland analysis; receivables monitoring

8 2004

¸ukasz Kaliƒski - 81%; Agnieszka Kaliƒska - 18% None

¸ukasz Kaliƒski

5

7

Optant Sp. z o.o.

Al. Stanów Zjednoczonych 61A, 04-028 Warsaw 22 617-2233/22 616-2487 biuro@optant.com.pl, www.optant.com.pl

President

Michel Kiviatkowski Managing Partner

Managing Partner

President

Ewa Orkwiszewska President

Tax Advisors

Managing Partner

MAIN SPECIALIZATION: IT

Ericpol Sp. z o.o. ul. Targowa 9A, 90-042 ¸ódê 42 664-2500/42 664-2555 office@ericpol.pl, www.ericpol.pl

195.6 151.4 123.2

221.6 163.4 137.4

-

100 -

Programming; databases; IT administration and server support; hosting

Ericsson; Actia; AlcatelLucent; Cyandia; Freedom OSS; Magneti Marelli

1,715 1991

Ericpol - Jan Smela - 100% None

Jan Smela

arvato Polska, oddzia∏ Bertelsmann Media Sp. z o.o.

2 ul. Kolejowa 150, 62-064 Plewiska k. Poznania 61 652-8800/61 651-7610 office@arvato.pl, www.arvato.pl

160.7 159.8 143.0

160.7 159.8 143.0

WND WND WND

WND WND WND

Programming; mobile platforms; computer hardware and software technical support; IT administration and server support; data security and antivirus software; hosting

Microsoft; Play/P4; Polkomtel

2,000 1994

None Bertelsmann - 100%

Janusz Jankowiak

Sii Sp. z o.o.

Al. Niepodleg∏oÊci 69, 01-214 Warsaw 3 22 486-3737/22 486-3734 informacja@pl.sii.eu www.pl.sii.eu

94.8 51.4 30.2

94.8 51.4 30.2

-

100 -

Programming; databases; mobile platforms; computer hardware and software technical support; IT administration and server support; data security and antivirus software; hosting

Citibank; Roche; Volvo IT; Nordea; Gemalto

1,300 2006

Gregoire Nitot - 30% Sii Francja - 70%

Gregoire Nitot

it WORKS SA Al. Jana Paw∏a II 41C, 31-864 Kraków 4 12 395-1300/12 395-1301 biuro@itworks.pl www.itworks.pl

31.0 19.2 16.4

52.8 28.9 23.8

WND WND WND

WND WND WND

Programming; databases; mobile platforms; computer hardware and software technical support; IT administration and server support; data security and antivirus software; hosting

GDF SUEZ Energia; Zelmer; Danone; Travalplanet; Muzeum Historyczne Miasta Krakowa; GFK Polonia; hotele24.pl

250 2001

None Enterprise Investors - 100%

Leszek Ro˝d˝eƒski

IT Connect Sp. z o.o. ul. Marsza∏kowska 80, 00-517 Warsaw 5 22 653-8592/22 653-8592 biuro@itconnect.com.pl www.itconnect.com.pl

26.7 24.4 21.9

26.7 24.4 21.9

-

100 -

Programming; databases; mobile platforms; computer hardware TP; Sygnity; NTT; Oriflame and software technical support; IT administration and server Poland support; data security and antivirus software

300 2007

Bart∏omiej Maƒkowski - 90%; Grzegorz Skoczek - 10% None

Grzegorz Skoczek

Przedsi´biorstwo Us∏ugowo-Handlowe Zastosowaƒ Elektronicznej Techniki Obliczeniowej ZETO SA w Poznaniu 6 ul. Fredry 8A, 60-967 Poznaƒ 61 852-6585/61 852-1634 info@zeto.com.pl, www.zeto.com.pl

18.6 23.1 20.8

22.2 28.3 24.1

-

80 -

Programming; databases; computer hardware and software technical support; IT administration and server support; data security and antivirus software; hosting

EVER; BDInet Tylski; O/ZUS; OT LOGISTICS; TESGAS

88 1965

WND None

Marek Majewski

8.9 8.5 7.3

1,327.4 1,168.4 946.4

-

100 -

Programming; databases; mobile platforms; computer hardware and software technical support; IT administration and server support; data security and antivirus software; hosting

WND

3,151 1989

Aviva PTE Aviva BZ WBK - 12%; Adam Góral - 9.7%; PTW PZU - 6% WND

Adam Góral

InfoPower Sp. z o.o. ul. Stoczniowa 2, 82-300 Elblàg 8 55 236-4604/55 236-4601 projekty@infopower.pl www.infopower.pl

5.9 6.2 6.5

11.0 8.9 9.2

8.6 -

39.3 -

Programming; databases; computer hardware and software technical support; IT administration and server support; data security and antivirus software; hosting

WND

42 2000

Jacek Makarewicz; Jerzy Olszewski WND

Jacek Makarewicz

Power Media SA ul. Grabiszyƒska 241B, 53-234 Wroc∏aw 9 71 769-4300/71 321-0016 office@power.com.pl www.power.com.pl

3.0 3.5 4.0

8.3 7.3 7.8

-

17 -

115 1997

Wojciech Narczyƒski - 26.7%; Marta Przew∏ocka - 15.5%; Ewa DàbrowskaPrus - 8.2% None

Luxoft Poland Sp. z o.o. ul. Krakowska 280, 32-080 Zabierzów 10 12 445-8800/12 445-8801 luxoftpr@luxoft.com www.luxoft.com

1.2 NA NA

1.2 NA NA

-

100 -

WND

220 2010

None Luxoft International Company Limited 100%

Wojciech Mach

TP; PZU; Millennium Bank; Uniqa; UPC; Compensa; ING; Getin Noble

600 1994

Outsourcing Experts WND

Konrad Rochalski

1

7

Asseco Poland SA ul. Olchowa 14, 35-322 Rzeszów 17 888-5555/17 888-5550 info@assecco.pl, www.asseco.pl

Programming; databases; mobile platforms; computer hardware Nokia Siemens Network; and software technical support; IT administration and server Telefonia DIALOG; Grupa support; data security and antivirus software; hosting Siemens; Motorola Polska

Programming; databases; mobile platforms

President

General Director

President

President

President

President

President

President

Wojciech Narczyƒski President

Managing Director

MAIN SPECIALIZATION: BACK-OFFICE

ArchiDoc SA ul. Ba˝antów 35, 40-668 Katowice 1 32 355-6840/32 355-6870 biuro@archidoc.pl www.archidoc.pl

49.5 45.5 WND

49.5 45.5 WND

-

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Not more than 10 companies from each specialization are listed here. For the full list subscribe at www.bookoflists.pl. Research for The List was conducted in January 2013.

Footnotes: (1) Financial year: September 1 - August 31; (2) Financial year: July 1 - June 30.

100

Archiving personal files of former employees; handling correspondence; scanning of documents; data registration in computer systems; documents archiving

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. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2012, 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.

14

OUTSOURCING

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Foreign investment

Outsourcing becomes most popular sector for FDI In 2012, Poland’s innovative services sector, including BPO, SSC and ITO, attracted 20 investments worth a total of €35.1 million, providing some 4,800 jobs, according to the Polish Information and Foreign Investments Agency (PAIiIZ), a state-run institution that helps foreign investors develop projects in Poland. The figures only include investments that PAIiIZ aided.

Nevertheless, the increase is significant compared to 2011, when PAIiIZ helped companies complete 14 projects worth a total of €14 million, creating employment for some 3,000 people.

The largest number of foreign investments in the sector last year came from the United States, with nine investments. The remaining 11 came from European Union countries and Japan.

Rafa∏ Szajewski from PAIiIZ told WBJ that for sev-

In the big cities

eral years, the innovative services sector had accounted for a growing number of projects aided by the agency.

Improving results “The previous year [2012] brought a very good result in investments completed, especially considering the general economic downturn,” Mr Szajewski added. “Such a high percentage of projects in the innovative services sector means that Poland meets the requirements of investors for high-skilled personnel.”

Despite a worsening economic situation throughout the European Union, Poland has managed to maintain a large number of investments in the sector. Indeed, less than 10 years after joining EU structures, Poland is the European leader in terms of the number of such investments.

EU brand helps Mr Szajewski said that “the mere fact of joining the European Union meant that Poland began to be seen as a predictable, large economy with a well-established and secure political system.”

SHUTTERSTOCK

Investments in innovative services have overtaken those from the automotive sector

PAIiIZ BPO projects were worth €30 million in 2012 Regardless of their industry, firms looking for a location for their investment always take into account the political and economic risks associated with a given site. “Accession to the EU confirmed the compliance of Polish standards with other Western European

countries and has improved the image of Poland in the eyes of foreign investors,” Mr Szajewski said.

This year also looks promising for Poland. PAIiIZ reported that in January alone it had already completed one project and had started work-

ing on another 30 projects from the BPO sector, which has overtaken the automotive sector in terms of number of investments. If the projects, worth a total of €31 million, are successful, some 6,800 people will eventually be employed as a result.

Although Poland attracts many foreign investors, they tend to concentrate their assets in the biggest cities. In both 2011 and 2012 almost all innovative services centers were located in Kraków, ¸ódê, Poznaƒ, the Silesia agglomeration (which includes Katowice and its surroundings), Warsaw, Wroc∏aw and Tri-city (Gdaƒsk, Gdynia and Sopot).

There are still regions in the eastern parts of Poland that attract little or no investment, although local governments are doing their best to promote them. Nevertheless, potential investors say they are discouraged by the lack of proper roads, railways and aviation infrastructure to connect these areas with the rest of the country.

Mr Szajewski remains optimistic. “As long as companies follow the main rationale of economic calculation, and Poland has young, educated workers who are willing to improve their skills,” he says, “we will see new investments in the area of business services.”

Marta Mardosz

Outsourcing is in How do you view the outsourcing industry in Poland?

Krzysztof Sadecki: In my opinion, Poles are specialists in the outsourcing sector. Polish companies provide services not only to European companies, but also to global concerns. We are perceived in the world as very skilled and relatively cheap specialists.

Based on your experience, are investors using outsourcing companies more or less often nowadays?

Despite the economic crisis, I have noticed an upward trend in the use of outsourcing companies. When companies develop, they learn that sometimes it is better to entrust certain tasks to external experts who will do the same work relatively cheaper while ensuring high quality. To grow your business, it is important to be surrounded by well-qualified staff – there is no doubt about that.

However, it is often better to use the service and experience of existing entities rather than hiring your own staff.

Is the use of outsourced services popular only among foreign companies or have Polish companies started using such services too?

We’ve left behind the era when everyone wanted to be specialists in everything. An increasing number of people are beginning to understand these mechanisms in the sphere of business. This is good because in terms of the economy it allows us to take further steps towards approaching the standards in Western countries.

In which areas of outsourcing have you noticed the biggest demand?

In my opinion, the biggest demand is still in the IT, legal and accounting sectors. But there are also other, fast-growing services such as professional counseling on running a business. Those services help to deal with the optimization of costs. They also provide economic and financial consulting services.

You mean companies like New Direct?

New Direct is a holding company that specializes in many areas. Our company is run on the basis of our well-established knowledge of the financial market and is supported by many years of experience. The

biggest asset of the company is a team of experienced experts who share their knowledge about personalized financial counseling, investment policy, business risk assessment and advanced accounting. But New Direct also provides legal services or help with renting an office space or a virtual address.

What makes New Direct better than other companies?

COURTESY OF NEW DIRECT

Krzysztof Sadecki, the CEO of New Direct, talks about the outsourcing sector in Poland and what makes his company unique

Mr Sadecki believes the outsourcing sector in Poland will continue to grow

Thanks to the structure of New Direct, we offer complex assistance in running a business, a model which is unparalleled on the national scale. Our customer can receive financial counseling as well as help with cost optimization, legal and accounting assistance or gaining insurance on preferential terms. And still that’s not everything we offer.

What kind of businesses do you serve?

We serve a wide range of companies both in the Polish and British market. Among our

BROUGHT TO YOU BY NEW DIRECT

clients are large companies listed on the Warsaw Stock Exchange, medium-sized businesses and start-ups. We consider the latter to be a very important element of building a national economy based on the initiative of Poles.

How will outsourcing in Poland look in the future?

In my opinion, the outsourcing sector will grow steadily from year to year. However, to maintain and strengthen this trend, it is crucial to educate businesspeople about the benefits derived from the use of such business solutions. ●

After a €12 million renovation Hotel Bristol has joined Starwood’s elite Luxury Collection

Griffin Group CEO Przemys∏aw Krych speaks about the Meble Emilia controversy

16

17

LOKALE IMMOBILIA

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

Solid Security leases Ideal Idea Park III Solid Security has leased 1,500 sqm of office space and 3,000 sqm of warehouse space in Ideal Idea Park III in Warsaw, developed in the capital’s W∏ochy district. Its completion is planned for Q2 2013. IIP III offers 18,500 sqm of modern office and warehouse space and parking for 230 cars.

New office building in Mokotów A seven-storey office building with a threestorey underground parking lot for 211 cars is planned in ul. Wielicka, in the Mokotów district of Warsaw. The building will comprise 24,700 sqm. ●

In this issue Le Palais delivered . . . . . . . . . . .15 APA Wojciechowski plagiarized Hadid? . . . . . . . . . . . . . . . . . . . . .15 Bristol among the best . . . . . .16 Feniks put up for sale . . . . . . . .16 Warsaw office data . . . . . . . . . .16 Griffin CEO on Emilia . . . . . . . . .17

Pró˝na regains its beauty Ul. Pró˝na’s Jewish tenement houses have regained their pre-war beauty thanks to extensive refurbishment Stock Exchange-listed developer Warimpex has completed refurbishing and redeveloping its Le Palais development on ul. Pró˝na 9 near Plac Grzybowski, in the heart of Warsaw’s pre-war Jewish neighborhood. The two historic tenement houses from the 19th century, originally owned by Samuel No˝yk, a powerful businessman and the founder of the capital’s only surviving synagogue – Synagoga No˝yków – comprise a total of approximately 6,750 sqm of leasable space, including 5,300 sqm of office space.

Warimpex’s original idea was to turn the project into a boutique hotel, offering

tourists an opportunity to stay at one of the most interesting historical sites of Warsaw, but the plan was soon changed.

The refurbishment and redevelopment of the buildings took Warimpex 18 months. Architect Wojciech Pop∏awski from the OP Architekten studio reconstructed the original facades from preserved photographs and designs and expanded the facility’s south side, adding a new brick-layered building with steel elements in harmony with the surroundings.

Mr Pop∏awski worked closely with the city’s curator of historic buildings to recreate the architectural details of the tenement house, designed by the famous architect Franciszek Brauman, author of the Wedel building on ul. Szpitalna in Warsaw.

The class-A development was built by construction company PORR (POLSKA) and

COURTESY OF OP ARCHITEKTEN

After a rather good year in terms of new apartment sales, Polish real estate developers expect a downturn in 2013 as the state’s aid program “Rodzina na swoim” came to an end in December 2012. A new program for young Poles has been slated to start in early 2014 and many buyers are likely to wait for its launch. With the excessive supply of unsold new apartments, developers will probably be forced to further reduce prices.

Office

It took Warimpex 18 months to refurbish and redevelop the Le Palais buildings completed in December last year. So far more than 68 percent of its total space has been leased out. Current tenants include Ipopema Group, Stewart Title, Schoenherr, the

Austrian Cultural Forum, IVG and Accreo.

Warimpex intends to sell Le Palais to an international investor later this year and to buy another tenement house

on ul. Pró˝na. Jerzy Krogulec, general director of Warimpex in Warsaw, said the company would participate in the tender for its sale in June.

Karolina Kowalska

Retail

Galeria Wilanów a plagiarism?

The development bears a striking resemblance to Zaha Hadid’s Phaeno Science Center in Wolfsburg, Germany A new commercial center in Warsaw’s Wilanów district, scheduled for completion at the end of 2014, could be a plagiarism of the Phaeno Science Center in Wolfsburg, Germany, Gazeta Wyborcza reported.

Galeria Wilanów’s architects, from the APA Wojciechowski architectural studio and the Israeli Moshe Tzur design studio, maintain that any similarity to Zaha Hadid’s German project is coincidental.

There are two schemes within the center. One is 250 meters long and will offer 60,000 sqm of retail space, while the other one, smaller in size, will comprise 16,000 sqm of retail space. Both are set to be built at the intersection of ul. Przyczó∏kowa and ul. Branickiego. The first building’s construction cost is estimated at €160 million.

The larger building’s glass elements, asymmetrical lines and small windows, make the design reminiscent of a “Star Wars” space shuttle, according to Gazeta Wyborcza. The Phaeno center includes very similar design elements, the paper said.

Szymon Wojciechowski, the head of APA Woj-

COURTESY OF GTC

Developers expect a fall

JAN 28 – FEB 3, 2013, LI 18/03

Galeria Wilanów is scheduled for completion at the end of 2014 ciechowski, said in an interview with the newspaper that the Phaeno Center was not an inspiration for Galeria Wilanów and that he was shocked by the resemblance.

The sole developer of the planned Galeria Wilanów, the WSE-listed Globe Trade Centre (GTC), acquired the remaining 50 percent stake in

the investment previously held by Polnord.

Since residents began moving into district’s largescale development project “Miasteczko Wilanów” some years ago, it has begun attracting business and commerce. The district has so far been mainly regarded as purely residential (it is often

referred to as “Warsaw’s bedroom”) and is now beginning a new chapter.

According to real estate experts, in terms of offices, the district, with its lush green areas, offers a refreshing alternative to Warsaw’s other well-established office districts.

Karolina Kowalska

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Hospitality

COURTESY OF STARWOOD HOTELS & RESORTS

Hotel Bristol joins exclusive company

A view of the Bristol’s refurbished interior

COURTESY OF STARWOOD HOTELS & RESORTS

Warsaw’s Hotel Bristol

The historic Warsaw hotel has become part of a very prestigious group

ovation which cost €12 million and took eight months to complete, the capital’s most renowned hotel is the first Polish hospitality facility in the firm’s Luxury Collection, which also includes the Hotel Danieli in Venice, the Prince de Galles Hotel in Paris and the Hotel Bristol in Vienna.

Situated in one of the most

Starwood Hotels & Resorts has added Warsaw’s Hotel Bristol to its elite Luxury Collection portfolio, which comprises its 80 best hotels in the world. After an extensive ren-

prestigious locations in Poland, next to the Presidential Palace and on the historic Trakt Królewski (Royal Route), the Hotel Bristol was opened in 1901 by the renowned composer and future Polish Prime Minister Ignacy Paderewski. Designed

by W∏adys∏aw Marconi, it has a neo-renaissance facade and

Secessionist interiors.

Restoration work included moving the reception desk to its original location next to the main entrance, expanding the lobby and recreating some of the hotel’s Art Deco details. With the restored chandelier illuminating the grand floral display of palm trees and freshly cut blos-

soms, the lobby is a contemporary re-interpretation of the original winter garden by Otto Wagner the Younger, the hotel’s first interior designer. The new interiors were created by acclaimed London-based hotel designer Anita Rosato, who worked closely with the city’s historical curator.

The 112-year-old Hotel Bristol is the most prestigious and the most expensive hotel in Poland, offering 168 guestrooms and 38 suites decorated with subtle shades of

ivory and blue.

“With the celebrated Hotel Bristol, we are strengthening The Luxury Collection portfolio, unveiling Warsaw’s rich cultural heritage to our guests from all over the world with the exceptional style and luxury they have come to expect from Starwood’s luxury brands,” said Thomas Willms, senior vice president and regional director of Starwood Hotels & Resorts for East and Central Europe.

Karolina Kowalska

Office

Office

Feniks to be sold

Record Q4 take-up boosts Poland’s office market

COURTESY OF CUSHMAN & WAKEFIELD

Property developer Europlan and co-investor Griffin Real Estate have put the recently completed Feniks Office Building up for sale. Colliers International will market the investment.

Located at the intersection of ul. ˚elazna and ul. Sienna in the capital’s Wola district, the seven-storey development comprises approximately 10,000 sqm of leasable office, retail and service space. The underground garage contains 48 parking spaces.

The class-A building obtained its occupancy permit in December and earlier this month Bank Ochrony Ârodowiska leased all of the office space in the facility (9,000 sqm) and part of the 1,000sqm retail area located on the building’s ground floor. The agreement, brokered by Cushman & Wakefield, was signed for 12 years, with the lease period starting in May this year.

Feniks, developed by Euro-

Last year saw a record level of office space take-up, at 608,500 sqm total

The seven-storey Feniks development contains about 10,000 sqm of leasable office, retail and service space plan, was designed by ArchiCo-projekt under the supervision of Konrad Tanasiewicz. Modzelewski & Rodek, a subsidiary of developer PORR, was the general contractor. Financing for the development was provided by PKO BP. The scheme is close to the Warsaw Central railway station and Z∏ote Tarasy shopping center. Companies who lease space in the building may put their logo on the rooftop.

The Feniks Office Building

was built on the site of the former Dom Handlowy Feniks commercial center. The demolition of the original Feniks in 2009 marked the symbolic end of the communist era in Wola’s architecture. Dom Handlowy Feniks, completed in 1972 after five years of construction, was nicknamed “Warsaw’s Pretty Boy” for its then-modern design. Until the late 1990s, the commercial center sold a variety of food and textiles.

Karolina Kowalska

Eleven buildings totaling 120,000 sqm were added to the Warsaw office market in Q4 2012, which took the modern office stock to 3,859,000 sqm, according to data from the Warsaw Research Forum.

The largest developments delivered to the market were Green Corner (24,500 sqm) and Business Garden, with its two buildings totaling 22,000 sqm of office space.

The vacancy rate in central locations stood at 8.8 percent compared to 8.1 percent at the end of Q3 2012. In non-central locations, the vacancy rate was also at 8.8 percent, compared to 7.8 percent in Q3 2012.

Take-up in Q4 2012 reached 153,200 sqm, which boosted the total figure for 2012 to the record level of 608,500 sqm (up by around 6 percent on 2011). That made Q4 the busiest quarter of the year for Poland’s office market, according to Warsaw Research Forum.

The largest office space volumes were leased on the

fringes of the city center (28 percent) and in the Upper Southern zone (27 percent).

New leases (104,800 sqm) accounted for 68 percent of all deals, with pre-lets making up over half of them (54,000 sqm). Renegotiations and extensions accounted for 23 percent of all transactions, which was a similar figure to that in Q3 2012.

The largest deal in Q4 2012 was the pre-lease signed by Frontex for 14,600 sqm in the Warsaw Spire office building being developed by Ghelamco, while Bank Ochrony

Ârodowiska took up the entire office space at the Feniks building (8,950 sqm) developed by Europlan and delivered at the end of 2012.

According to a report by Jones Lang LaSalle, the total investment transaction volume in Poland’s commercial property market stood at approximately €2.75 billion in 2012, making the country the most active market in CEE. The volume roughly equaled that of 2011, and volume is expected to be high again this year.

Karolina Kowalska

COURTESY OF SKANSKA PROPERTY POLAND

The newly developed office building in Warsaw’s Wola district is being put up for sale

Green Corner was the largest building to be delivered to the market in Q4

JANUARY 28 – FEBRUARY 3, 2013

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Office

Maximus won’t expand due to bankruptcy

‘We will fight for our rights’ Lokale Immobilia sits down with Przemys∏aw Krych, CEO of Griffin Group, to talk about the Meble Emilia controversy our legs and do nothing about it. Clearly, they underestimated us. We can fight for our rights even if it means taking the Republic of Poland to the Arbitration Tribunal in Stockholm. It’s obvious what the verdict will be.

Meanwhile, the city accuses you of unlawfully terminating the contract ...

Which is another absurdity.

City officials claim that their failure to fulfill very important obligations specified in the contract is insignificant.

If they are not aware of its importance, they might want to consider a phone call to a notary.

Przemys∏aw Krych, CEO of Griffin Group, plans to fight for Emilia

Some observers say that one way to put an end to the conflict would be to simply weld the doors shut and not allow the museum to operate in the building anymore. You

own it, after all.

Frankly speaking, it could be out of my hands. Griffin Group runs an investment fund with capital coming from all over the world. I

COURTESY OF STARWOOD HOTELS & RESORTS

Karolina Kowalska: Your conflict with Warsaw City Hall over the Emilia building has made international headlines. The property that you bought was registered as a “historical monument” several hours after you closed the transaction and paid the money. In response, you terminated your firm’s contract with the city to host the Museum of Modern Art in Warsaw. City officials claim that their breach of contract is marginal and you are in the wrong. What is your view?

Przemys∏aw Krych: There are two separate issues here: the “historical significance” of Emilia is one. Another is the contractual relationship with the Museum of Modern Art. Let me explain it this way. Imagine you bought an apartment and its interiors were not exactly to your liking. You rent it out and the tenant says that it’s so beautiful it should be in the city’s registry of historic buildings.

That is what the Museum of Modern Art has done.

Have you pointed this out to city officials?

To their utter astonishment.

The city expected us to walk away with our tails between

COURTESY GRIFFIN GROUP

How do you know this is the case?

We have the official letter from museum’s director, Joanna Mytkowska, to the city’s conservation architect Piotr Brabander, in which Ms Mytkowska asked for conservation recommendations for the building, which had never been registered as a monument. It was only entered in the register on September 18, almost two weeks later.

have fiduciary duties and I am obliged to do what the investors decide. If they decide to close the place down, I would have to do it.

Griffin wants to build a ‘dancing tower’ on Emilia’s site

But for now you are waiting for things to develop?

Unlike city officials, I have plenty of time and I can afford to wait. We have not invested borrowed money, nobody can make us start building now or in the next 12 months and threaten to stop the financing if we don’t.

Unlike the city, we can wait.

What is more, I daresay, the city’s actions aren’t the best publicity for the Polish capital. If the city wants to be presented at the MIPIM real estate fair in Cannes this March with a banner saying: “Don’t invest in Warsaw, they will fool you there,” they can certainly expect it – that is, if they continue down their current path.

The conflict over Emilia has overshadowed other Griffin investments, hasn’t it?

In terms of our business scale the matter is completely marginal. We invested €138 million of equity capital in Poland last year and this year we want to invest up to €200 million.

We plan residential investments in Bemowo and in Powsin, where we intend to build an upper-class housing estate. We’ve completed the Feniks office building and we are currently preparing for the construction of another office building at the corner of ul. ˚elazna and ul.

Ogrodowa in Warsaw.

We’ve started the Hala Koszyki restoration project and improvement work in Dom Handlowy Renoma in Wroc∏aw. We have recently won tenders for two fully leased office buildings in the capital.

We have a lot of business on our hands right now, we think big and I can assure you that Griffin Group will be heard of not only in the context of the Emilia controversy. ●

17

The Maximus commercial center in Nadarzyn, near Warsaw, will not get its planned expansion.

Israeli company Sybil Develeopment, which was to make the investment, is currently undergoing bankruptcy proceedings aimed at liquidation. The bakruptcy trustee has put the center’s warehouses and the 20ha plot up for sale. The starting price is z∏.101.5 million. The first four warehouses, offering 100,000 sqm of space, were built by Sybilgroup in 2005. Two additional ones, comprising 40,000 sqm total, were constructed three years later by its subsidiary, Sybil Development, the aforementioned firm which is now in liquidation due to its debts. Maximus commercial center is one of the biggest clothing warehouses in Poland.

Cosmopolitan topped out Tacit Development Polska has topped out its Cosmopolitan Twarda 2/4 Tower building in Warsaw’s Wola district.

A 160-meter skyscraper with 252 apartments will be delivered at the beginning of 2014. The ground and first few floors of the building will be leased to retailers and service providers.

The glass-layered building, which will reflect the Palace of Culture as in a mirror, was designed by the renowned architect Helmut Jahn. ●

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MARKETS

JANUARY 28 – FEBRUARY 3, 2013

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

13,825.33 (Jan 24 close)

S&P500

3,130.38 (Jan 24 close)

1.69% (for the week)

FTSE100

1,494.82 (Jan 24 close)

-0.18% (for the week)

DAX

6,264.90 (Jan 24 close)

0.94% (for the week)

2.16% (for the week)

Tough week on the WSE

NIKKEI 7,748.13 (Jan 24 close)

10,620.87 (Jan 24 close)

0.16% (for the week)

0.11% (for the week)

CHANGE: 3.08%

CHANGE: -2.08%

CHANGE: 2.22%

CHANGE: 3.94%

CHANGE: -0.39%

CHANGE: -0.63%

(year to Jan 24)

(year to Jan 24)

(year to Jan 24)

(year to Jan 24)

(year to Jan 24)

(year to Jan 24)

52-week high: 13,879.70

52-week high: 3,196.93

52-week high: 1,502.27

52-week high: 6,271.40

52-week high: 7,789.94

52-week high: 10,952.30

52-week low: 12,035.10

52-week low: 2,689.58

52-week low: 1,266.74

52-week low: 5,229.80

52-week low: 5,914.43

52-week low: 8,238.96

Andrew Nawrocki WBJ market analyst It was a slow start to the week, with US markets closed on Monday due to Martin Luther King Day. Trading at the lowest volumes recorded so far this year, the Warsaw Stock Exchange saw a sluggish start, with blue chips barely budging. The small- and mid-cap indices did better, with the sWIG80 closing 1.16 percent higher, while the mWIG40 finished 0.34 percent up.

On Tuesday, for the second day in a row, shares of PKO BP and Orange Polska were hit hard, with Poland’s largest financial shedding 1.3 percent while Orange lost 2.4 percent.

The blue-chip WIG20 closed 0.27 percent lower.

Wednesday saw further declines for Polish equities, dragged down largely by

Major indices WIG

47,942.04 (January 24 close)

WIG20

2,568.63 (January 24 close)

Change for the week: 0.59%

52-week high: 48,222.72

Change for the week: 0.06%

52-week high: 2,628.36

Change year to January 24: -0.34%

52-week low: 36,653.28

Change year to January 24: -2.19%

52-week low: 2,035.80

49,000

2,700

48,600

2,660

48,200

2,620

47,800

2,580

47,400

24.01

23.01

22.01

21.01

18.01

17.01

16.01

15.01

14.01

11.01

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

24.01

23.01

22.01

21.01

18.01

17.01

16.01

15.01

14.01

11.01

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

21.12

2,500

21.12

2,540

47,000

Top 5 ECARD ONE2ONE MEWA REGNON TALEX

Closing 0.37 0.47 0.31 0.04 9.31

% change (week) 52-week high 105.56 0.47 42.42 3.46 40.91 0.40 33.33 0.18 24.97 10.50

52-week low 0.15 0.14 0.18 0.03 4.70

Top 5 KERNEL BRE PKNORLEN PGNIG JSW

Closing 66.00 335.00 52.10 5.71 93.85

% change (week) 5.18 5.02 4.41 3.63 2.57

52-week high 76.00 337.00 53.70 5.86 112.50

52-week low 51.00 255.70 31.44 3.61 82.15

Bottom 5 ESTAR EUROMARK ENERGOPLD WISTIL BUDVARCEN

Closing 1.69 0.08 0.28 15.00 1.66

% change (week) -98.01 -33.33 -17.65 -16.2 -15.74

52-week low 1.69 0.06 0.16 7.20 1.50

Bottom 5 GTC PKOBP TPSA TAURONPE ASSECOPOL

Closing 9.11 34.85 12.15 4.78 44.74

% change (week) -7.79 -4.49 -3.57 -2.45 -1.82

52-week high 11.47 38.50 17.79 5.61 55.45

52-week low 5.13 30.10 11.56 4.08 38.80

52-week high 145.00 2.39 2.41 33.02 2.91

sWIG80

External factors move currencies

11,108.21 (January 24 close)

Change year to January 24: 5.48%

WIG-Banki

6,607.93 (January 24 close)

24.01

23.01

22.01

21.01

18.01

17.01

16.01

15.01

14.01

11.01

10.01

09.01

21.12

24.01

23.01

22.01

21.01

18.01

17.01

16.01

15.01

14.01

11.01

6,400 10.01

32.0 09.01

6,480

08.01

32.4

07.01

6,560

04.01

32.8

03.01

6,640

02.01

33.2

28.12

6,720

27.12

33.6

21.12

6,800

08.01

52-week low: 5,163.30

07.01

Change year to January 24: -1.71%

04.01

52-week low: 32.53

03.01

52-week high: 6,723.16

Change year to January 24: 1.23%

02.01

Change for the week: -0.81%

28.12

52-week high: 43.83

27.12

Change for the week: 0.06%

34.0

Adam Narczewski X-Trade Brokers DM SA

24.01

23.01

22.01

21.01

18.01

17.01

16.01

15.01

14.01

11.01

10.01

52-week low: 8,984.43

08.01

07.01

04.01

21.12

24.01

23.01

22.01

21.01

18.01

17.01

16.01

33.63 (January 24 close)

52-week high: 11,108.21

SOURCE: WSE

NewConnect

15.01

14.01

10,200 11.01

2,500

10.01

10,400

09.01

2,540

08.01

10,600

07.01

2,580

04.01

10,800

03.01

2,620

02.01

11,000

28.12

2,660

27.12

11,200

21.12

2,700

03.01

52-week low: 2,147.52

02.01

Change year to January 24: 3.02%

28.12

Change for the week: 3.17%

27.12

52-week high: 2,646.20

09.01

2,646.20 (January 24 close)

Change for the week: 1.07%

PKO BP, after a surprise announcement by the Treasury Ministry that it plans to sell a further stake in the company. Shares of PKO BP fell over 1.5 percent.

The WIG20 shed 0.32 percent.

Despite better-thanexpected PMI data for both Germany and the euro zone on Thursday, Polish equities moved little throughout the day. The WIG20 closed 0.4 percent higher.

The WSE also did poorly on Friday, with the WIG20 ending the week 1 percent down. Energy giant PGE was the worst performer on the index, ending the day with its share price 2.9 percent down.

Shares of copper miner KGHM, meanwhile, lost 2.3 percent. ●

Currency report

Other indices mWIG40

19

Market participants are being hit with mixed macroeconomic data from major economies, and this is preventing a larger corrective movement.

The EUR/USD, supported by the S&P500 index reaching a five-year high, continued climbing to reach $1.3465, its highest level since February of 2012. It seems though that this upward movement could be halted as an increasing number of signs are showing the US economy is experiencing a slowdown.

Retail sales in Poland declined by 2.5 percent in December (on an annual basis) while the unemployment rate climbed to 13.4 percent. The Monetary Policy Council (RPP) could help the economy by cutting interest rates but it seems

that after one more expected cut, the RPP might stay on hold to see how the economy reacts to lower rates.

The weak macroeconomic data had a strong effect on the z∏oty. The EUR/PLN breezed through crucial resistance levels and advanced all the way to z∏.4.18 (with a weekly high of z∏.4.1950).

Against the US dollar on the other hand, the local currency regained the ground it lost during the first part of the week. After reaching a weekly high of z∏.3.15, the weakness of the dollar caused the USD/PLN to tumble all the way to z∏.3.10.

I believe international markets are close to a larger corrective movement, which in turn will negatively affect the z∏oty in the upcoming months. ●

currency rates 3.5188 24.01

3.4352

3.5320 23.01

25.01

3.5352 22.01

SOURCE: NBP

3.5028 21.01

3.0

3.4396

3.5

18.01

0.1040 25.01

0.1044

0.1034

PLN-100JPY

4.0

24.01

23.01

0.1037 22.01

21.01

0.1022 18.01

3.3857

3.3680 25.01

0.10

0.1035

PLN-RUB

0.12

24.01

3.3587 23.01

3.3689 22.01

3.3067

3.3648 21.01

25.01

24.01

23.01

18.01

4.9205

4.9880

4.9519

4.9596 22.01

21.01

PLN-CHF

3.5

3.0

18.01

4.9

4.9820

4.9286

3.1186 25.01

3.1503

PLN-GBP

24.01

3.1195 23.01

3.1341 22.01

21.01

3.0925 18.01

4.1964

4.1903 25.01

3.0

3.1351

PLN-USD

3.5

24.01

4.1591 23.01

4.1700 22.01

21.01

4.1294 18.01

4.0

4.1762

PLN-EUR

4.3

Maybe social

media

is just a fad.

But these companies don’t think so. *

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

www.valkea-attention.com *Attention USA clients

SPORTS

JANUARY 28 – FEBRUARY 3, 2013

www.wbj.pl

21

Doping

Polish boxer claims doping should be legal

Tennis

Radwaƒska falls short at Australian Open The Polish tennis star lost to China’s Li Na in the quarterfinals Polish tennis star Agnieszka Radwaƒska’s wait for a firstever Grand Slam title continues, after she was beaten in two straight sets by China’s Li Na in the Australian Open quarterfinals last week.

Radwaƒska began 2013 in masterful form, winning 13 straight matches and two titles – in Auckland and Sydney – prior to her defeat by the no. 6 seed.

The 2011 French Open champion re-found the form she had been lacking for the past 18 months, overcoming her Polish opponent 7-5 in a hard-fought first set before taking the second 6-3, to move Radwaƒska’s Australian challenge for another year.

“I really don’t know what it is here,” said Ms Li, who has reached the Australian Open semifinals in three of the last four years.

“It seems whenever I come down here my results are always quite consistent, no big

setbacks or anything. … With the Australian Open, it’s like coming back and thinking, all my old friends are here,” Ms Li added.

Ms Radwaƒska, whose best result in a Grand Slam was last year when she lost in the Wimbledon final, was gracious in defeat, saying of her opponent, “She was very solid from the beginning of the match.”

“In some of the games she didn’t let me do anything. She was really playing good tennis,” she added.

David Ingham

Polish boxer Przemys∏aw Saleta has waded into the discussion following American cyclist Lance Armstong’s confession that he used performance enhancing drugs, claiming that he believes professional athletes should all be allowed to do so. After the now-disgraced cyclist confessed to Oprah Winfrey that he had doped during his career, which included seven Tour de France wins, Mr Saleta told Polish regional newspaper Dziennik Polski that professional athletes should be allowed to use drugs to aid recovery.

He went on to say that current doping regulations favor the richest athletes and that only the “poorest and dumbest” get caught.

“It all comes down to whether or not someone has the money to have access to [drugs] that are undetectable,” he said.

“One example is China, where sports are sponsored by the state and there are no financial constraints. The result? Chinese athletes do not

get caught,” he added.

Mr Saleta, who will fight Andrzej Go∏ota at the Ergo Arena in Gdaƒsk on February 23, believes that allowing doping could actually be beneficial to the health of top athletes.

“I’ll give the example of cyclist Lance Armstrong, who doped for years. I guarantee that he will not have had any side effects. ... In fact, I would even say that in professional sports, doping is healthier,” he said.

Clarifying that he’s against young athletes and children using any illegal substances, he added that kids “often don’t even know what they’re taking, what effects it can have on their

COURTESY OF WIKIMEDIA COMMONS

Agnieszka Radwaƒska

SHUTTERSTOCK

Przemys∏aw Saleta made the claims while preparing for his fight with Andrzej Go∏ota

Przemys∏aw Saleta

bodies. And they could pay the price for using them for the rest of their lives.”

Mr Saleta, a former world champion in kickboxing and European champion in boxing, last entered a professional boxing ring in 2006 when he beat Ed Perry. He will take on Mr Go∏ota, nicknamed “The Foul Pole” in a non-title contest.

With both fighters now 44 years of age, the fight is unlikely to be a great spectacle, but due to Mr Go∏ota’s continued fame in Poland it still looks set to be a financial success for organizers. The fight will also be shown on pay per view nationwide.

David Ingham

22

LIFESTYLE

www.wbj.pl

JANUARY 28 – FEBRUARY 3, 2013

Gallery

Polish retrospective

COURTESY OF THEBOHEMIANS.COM

Gallery of Art of the XX and XXI Century National Museum Al. Jerozolimskie 3 Warsaw

The Bohemians

A new gallery extension containing a wide-ranging collection of Polish art from the 20th and 21st centuries is now open at the National Museum in Warsaw. The work on show covers paintings, prints, drawings, sculptures, photographs and films from renowned Polish artists including W∏adys∏aw

Strzemiƒski, Henryk Sta˝ewski, Katarzyna Kobro, and Marek W∏odarski, as well as many others.

The museum’s curators decided to create the new gallery because there was no exhibition in Warsaw that gave insight into the full scope of Polish art from the past 100 years. The works on show, the majority of which have not been displayed at the National Museum previously, cover a variety of genres including abstract art, expressionism and

Concert

A Spectacular Night of Queen February 1 Sala Kongresowa, Pl. Defilad 1 Warsaw Queen was arguably one of the greatest live rock acts of the 20th century. Led by charismatic and talented showman Freddie Mercury, the band gained worldwide acclaim for its big sound, catchy riffs and

great lyrics in its songs such as “Bohemian Rhapsody,” “We Are The Champions” and “Somebody To Love.”

The classic Queen lineup can never be reunited due to the untimely death of Freddie Mercury back in 1991, but that doesn’t mean it’s not possible to get something close to the real Queen experience.

World-renowned Queen tribute band The Bohemians will bring back memories of

the drama, sound and look of the original group. For this Warsaw performance they will be joined by a symphony orchestra, for a night of music and entertainment that promises to bring the best of the band’s back catalogue to life.

Tickets for the event are priced from z∏.60.

David Ingham

For more information, log on to kongresowa.pl

COURTESY OF MNW

The show must go on

“Pan z gramofonem,” 1926, by Marek W∏odarski

more modern avant-garde styles.

“The differences shown in the cinematographic works, photographs, photo montages, and new acquisitions, including works from as early as the Third Republic, represent the nucleus of the next chapter of the National Museum in Warsaw’s art collection,” said Piotr Rypson, curator of the modern art collection and deputy director for research at the museum.

David Ingham

LAST WORD

JANUARY 28 – FEBRUARY 3, 2013

www.wbj.pl

23

Tech Eye

Luci (Mpowerd.com) that’s designed to fight energy poverty.

The lantern has uses in developed countries – it might have come in handy after Hurricane Sandy hit the United States, for instance – but the idea is to provide cheap, dependable light for people in developing countries.

Luci contains 10 white lightemitting diodes that illuminate an area of over four square meters.

The device charges

under sunlight or incandescent light, with a six-hour charge yielding light for up to twice that time.

Uninflated it looks kind of like a squidgy disk, standing just 2.5 cm in height, for easy packing or practicing for the discus throw.

Mpowerd’s Luci lantern has a “minimum lifespan” of one year and costs $15.99. That seems a bit pricey for the developing world, but it’s cheaper and more useful than a beeping fork.

The last item on our list – and the last CES 2013 product we’ll cover this year (probably) – is the Yotaphone from Russia’s Yota Devices (Yotadevices.com).

The Yotaphone’s claim to fame is a second screen, located on its back. We’ll be honest: the phrase “dual-screen smartphone” touches Techeye

The Yotaphone

in a place we haven’t been touched since triple-casette-playing boomboxes and double-headed guitars went out of fashion. That place is labeled “unnecessary and splendidly awesome.”

Still, other dual-screen smartphones have entered (and disappeared from) the market. This isn’t a revolutionary feature.

What is new, however, is the fact that the Yotaphone’s second screen is an e-ink display, like that of a Kindle. The features is described as a “personal space for receiving notifications, linking to your social media, reading news as it happens or simply displaying your favorite pictures.” Is any of that necessary?

No. Splendidly awesome? Oh yes.

The Yotaphone runs Android 4.2 and both of its displays are 4.3 inches in size. There’s a dual-core processor (mildly disappointing, given the recent emergence of octo-core processors) and a 12MP rear camera.

Anyway, Yota Devices has yet to release pricing details, even though CES ended weeks ago. We call that laziness. ●

MPO WER D

vibrations when you are eating too fast.” It’s just like Techeye’s Mum, in other words, except it has a pointy head and ... oh wait, it’s exactly like Mum. There’s more to the HAPIfork than is evident at first glance. For example, you can track your eating speed over time via an online dashboard and/or mobile app. It’s also equipped with bluetooth and is dishwasher safe. And did we mention that it vibrates? You get all that for just $99.

Still, there’s something disconcerting about the HAPIfork. The marketing pitch reeks of emotional derangement, with numerous blandishments to “love your life,” to “share with the community” and to “review all that made you feel good today!” This makes us want to call up HAPILABS to remind them that they’re selling a fork, not a 12-step program.

In comparison to the HAPIfork, the next gadget on our list suffers 100-percent fewer First-World problems.

Luci is an inflatable, solar-powered lantern from Mpowerd

COU RTE SY O F

COURTESY OF HAPILABS

The 2013 Consumer Electronics Show came and went a few weeks ago, but, as always, Techeye is dragging it out as long as possible. Some might call that laziness. We prefer to think of it as meaningfully retarded coverage.

Anyway, for our final column about CES 2013, we’re looking at some of the show’s quirkier gadgets.

Not the dregs, but rather curiosities and technological arcana.

Things that are unlikely to set fire to consumers’ hearts and wallets.

Here’s an example of what we mean: behold, the HAPIfork from HAPILABS (Hapilabs.com), a maker of lifehacker gadgets.

The HAPIfork keeps track of your eating habits and “alerts you with the help of indicator lights and gentle The HAPIfork

COURTESY OF MPOWERD

Meaningfully retarded coverage of CES 2013

Ever pined for a triple-cassette-playing boombox? Let us know: techeye.wbj@gmail.com

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

Fibak Gallery ul. Krakowskie PrzedmieÊcie 5 www.galeriafibak.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.

Galeria 022, DAP, Lufcik pl ul. Mazowiecka 11a www.owzpap.pl Le Guern Gallery ul. Widok 8, Galeria 65 www.leguern.pl ul. Bema 65 www.galeria65.com Museum of Galeria Appendix 2 Independence ul. Bia∏ostocka 9 Aleja SolidarnoÊci 62 www.appendix2.com www.muzeumniepodleglo sci.art.pl Galeria Asymetria ul. Nowogrodzka 18a National Museum in www.asymetria.eu Warsaw Al. Jerozolimskie 3 Galeria Foksal ul. Foksal 1-4 www.mnw.art.pl www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.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

Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl