WBJ# 50-52, 2013

Law in Poland

Year in review

A four-page supplement focused on key changes in Polish law this year and those expected next year 11-14

2013 was the year of big political shake-ups in Poland

WWW.WBJ.PL

10

VOLUME 19, NUMBER 50-52 • DEC 23, 2013 – JAN 12, 2014 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

Going digital

LOKALE IMMOBILIA COURTESY OF STARWOOD HOTELS

REAL ESTATE

2013 1994

• Major hotel transactions • Forecasts and analyses for residential and commercial sectors 15-19

Missile mix-up Has Russia stationed Iskander missiles on Poland’s doorstep or hasn’t it?

4

Up, up, up Economists at the World Bank and HSBC are the latest to increase their forecasts for Polish GDP growth in the coming years 7

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . . . .6 Finance & Economics . . . . . . . . . . .7 Cover Story . . . . . . . . . . . . . . . . .8-9 Year in Review . . . . . . . . . . . . . . . .10 Law in Poland . . . . . . . . . . . . .11-14 Lokale Immobilia . . . . . . . . . .15-19 Markets . . . . . . . . . . . . . . . . . . . . .20 Opinion & Analysis . . . . . . . . . . . .21 Sports . . . . . . . . . . . . . . . . . . . . . . .22 Lifestyle . . . . . . . . . . . . . . . . . . . . .23

2014

Agree to disagree

Colombian flight

Poland’s and Russia’s foreign ministers signed a road map for relations, but that was about all they could agree on

Will a South American business tycoon with Polish heritage buy troubled state-owned airline LOT? 6

3

WBJ retools to deliver news daily via web You might want to save this newspaper, as a little piece of history.

Beginning in the new year, Warsaw Business Journal is moving lock, stock and barrel onto the web, greatly enriching the current website, WBJ.pl, and consolidating all WBJ Group news content on one convenient platform.

“Hard business news now moves 24/7. Period,” said Kehrt Reyher, named this month by parent company Valkea Media to head WBJ Group as editor and publisher.

“We know this because we’ve carefully studied the behavior of subscribers to Poland A.M., Mr Reyher said of the daily email business newsletter published by the group since 1997.

Mr Reyher spent six months reviewing WBJ Group’s portfolio and drafting its strategy for the future before being named to the new post.

A quick English summary of the day’s major stories, Poland A.M. will be glued to the content that was going into the weekly print product – all on WBJ.pl with tablet and smartphone options. “We’re just changing the communication channels,” Mr Reyher said, “and delivering all of it to our readers faster while expanding our online advertising possibilities.”

February launch: p. 8 ➡

NEWS

www.wbj.pl

AmRest, an international fast-food and restaurant operator based in Wroc∏aw, is predicting a 10% increase in sales for 2014. If current growth is maintained, AmRest is likely to outgrow McDonald’s on the Polish market in terms of unit numbers. The company owns several international brands in Poland, including KFC, Burger King, Starbucks and Pizza Hut.

Deficit lower than expected?

3.1% y/y is how much the average salary in Poland’s corporate sector grew in November, according to Poland’s Central Statistical Office.

1.5% is the World Bank’s new forecast for Poland’s GDP growth in 2013, up from the previous forecast of 1.0%.

z∏.108 million is how much Polish consumers spent on unground coffee beans in the period of November 2012-October 2013, according to market research firm Nielsen.

Quote of the Week “Having a Dreamliner is a bit like being married to Paris Hilton. Everything you do, every slightest delay, is in the media.”

Figures in focus Labor pains Growth in labor costs in selected EU member states (in Q3 2013, changes in percent, y/y) 10

8.1

8

6.2

6

4.2

4

2.3

2.1

-0.1

-2.9

-7.6

-2 *Highest in the EU **Lowest in the EU

-4 -6

an y Hu ng ar y Po rtu Cz g ec h R al ep ub lic Cy pr us **

Ge rm

an d

-8

Ne

Professor Howard Davies asks what Danièle Nouy, whom the European Parliament has just confirmed as the first head of the European Central Bank’s new supervisory board, will have to do to change the ECB and make it more adaptable. To learn why it's a bit like a “fox teaching a hedgehog new tricks,” log on to WBJ.pl.

1.2

0

On WBJ.pl The hedgehog and the fox

1.6

2

Po l

Jacek Ciesnowski

Sebastian Mikosz, chief executive of LOT Polish Airlines, on his company’s experience using Boeing 787 Dreamliner planes.

nia the rla nd s

The first event was held in 1993, when Jerzy Owsiak, who had his own TV and radio shows, decided to raise money for the Children’s Memorial Health Institute in Warsaw.

He gathered his friends, coworkers and celebrities and organized a day-long charity drive.

The event was a success, with some $1.5 million being raised, helping to buy equipment not only for the institute, but for 10 other hospitals. This encouraged Mr Owsiak and his foundation to carry on with the project and hold such drives annually.

ia

process managing to raise millions to help those in need.

The last two editions brought in over $16 million each.

According to its organizers, the drive is one of the most effective operations of its kind in the world. It was ranked first in the latest Brand Asset Valuator list of Poland’s strongest brands.

One of the traditions of the charity is an auction of goldplated, numbered, heartshaped medallions. The one with number 1 is usually bought after a heated auction, with many companies, organizations and businesspeople participating.

Ro ma

In early January, the Great Orchestra of Christmas Charity (Wielka Orkiestra Âwiàtecznej Pomocy) will hold its annual grand finale. This year’s edition will take place on January 12.

Thousands of volunteers will collect contributions from people all over Poland, as well as around the world, in what will be the 22nd edition of the country’s biggest charity drive.

For the second straight year, it will raise money for both pediatric wards and medical care for the elderly.

The event includes a daylong media marathon, celebrity auctions and concerts, in the

Source: Eurostat

Company index Adris ..................................................6 Lotos ................................................22 Algonquin ........................................16 M-pesa ............................................21 Alitalia................................................6 Magnusson ......................................12 AmRest ..............................................2 Angel Poland Group........................16 Avianca ..............................................6

McDonald’s........................................2 Media & Marketing Polska ..............9 Microsoft..........................................21

BGK..................................................17

Calendar

Buro Happold ..................................16 BZ WBK ............................................7

January

Nano Carbon ....................................4 Nielsen ..............................................2

CEE Stock Exchange Group..............2 Nordea ............................................10

14

KPMG TAX AND ACCOUNTING CONGRESS

23

HR DIRECTORS SUMMIT

Colliers ............................................16 Phillips ............................................16

Event:

Top KPMG experts will discuss changes in the tax law which will be introduced on January 1 as well as new accounting standards.

Hilton Hotel, Warsaw kpmg.com/pl/en

Event:

Human Resource Managers from top Polish and international companies will share their knowledge and experience with their peers.

Marriott Centrum Hotel, Warsaw promocja.abc.com.pl/dyrektorhr/

Croatia Osiguranje ............................6 PKO BP............................................10

Location:

The deficit of the Polish public finance sector may be 0.5% lower than the 4.8% of GDP that was expected earlier, said Ludwik Kotecki, chief economist at the Ministry of Finance. This will be possible thanks to a budget deficit about z∏.8 billion lower than planned. ●

is how much Russia loaned Kiev through the purchase of Ukrainian treasury bonds.

*

AmRest hopes to outgrow McDonald’s

$15 billion

hu an

Talks between the Warsaw Stock Exchange and the CEE Stock Exchange Group on a possible capital alliance are nowhere near reaching a conclusion yet, Michael Buhl, chief executive of CEESEG told Austrian daily Wirtschaftsblatt. “We respect one another, are in contact and are in talks.

But the discussions will probably go on for some time still,” Mr Buhl said.

WSE CEO Adam Maciejewski said that 2014 will be “crucial” for the negotiations between the Warsaw and Vienna bourses.

Great Orchestra of Christmas Charity

nia

WSE talks with CEESEG drag on

Numbers in the News

Lit

Economics professor Jerzy Osiatyƒski was appointed a Monetary Policy Council (RPP) member by President Bronis∏aw Komorowski. He will replace Zyta Gilowska, who resigned from membership of the council in early October. Mr Osiatyƒski works at the Institute of Economics of the Polish Academy of Sciences and at the Bielsko-Bia∏a School of Finances and Law. Most recently, he was an economics advisor to the president. He is seen as a dove in terms of monetary policy.

IN THE SPOTLIGHT

Es to

Jerzy Osiatyƒski appointed to RPP

DECEMBER 23, 2013 – JANUARY 12, 2014

COURTESY OF WOÂP/¸UKASZ GIERSZ

2

Web:

22-25 WORLD ECONOMIC FORUM IN DAVOS Event:

Location: Web:

World leaders, top economists and businesspeople will gather in the Swiss resort to discuss the current and future global economic landscape. This year’s summit agenda is: The Reshaping of the World: Consequences for Society, Politics and Business.

Davos, Switzerland weforum.org

Location: Web:

29-30 HEAT AND POWER CONGRESS Event:

Location: Web:

Top policy makers, utilities CEOs, scientists and other executives will discuss what 2014 will be like for all segments of the Polish energy sector.

Król Kazimierz Hotel, Kazimierz Dolny powerpol.pl

Cushman & Wakefield ..............15, 19 Polnord ......................................15, 17 Deutscher Fachverlag ......................9 PwC....................................................6 EY ......................................................6 PZU ....................................................6 Ford..................................................22 Red Real Estate Development........17 Grant Thornton Dublin....................16 SEGRO ............................................19 HB Reavis ........................................15 Skanska ..........................................15 Homo Homini ..................................10 Starwood Hotels and Resorts ........16 HSBC ................................................7 T-Mobile ..........................................22 ING Bank ........................................10 Jones Lang LaSalle ........................19 TAP ....................................................6 KGHM ................................................4 Warsaw Stock Exchange ......2, 10, 20 LOT ..........................................2, 6, 10 X-Trade Brokers..............................20

NEWS

DECEMBER 23, 2013 – JANUARY 12, 2014

www.wbj.pl

3

Polish-Russian relations

The Polish and Russian foreign ministers agreed on a new framework for relations, though the countries are still at loggerheads over several big issues On a short visit to Warsaw in mid-December, Russian Foreign Minister Sergey Lavrov and his host Rados∏aw Sikorski signed a new “road map” on Polish-Russian relations.

During the meeting of the Committee on Polish-Russian Cooperation Strategy, Mr Lavrov and Mr Sikorski signed the joint declaration, which aims to aid the development of dialog and ministerial contacts until 2020.

“Polish-Russian relations are better than what the media says they are,” Mr Sikorski told journalists after meeting his Russian counterpart. Russia is an important economic partner for Poland, he added, saying that “the presence of Russian capital in Poland is greater than we thought.”

For his part, Mr Lavrov

COURTESY OF MINISTRY OF FOREIGN AFFAIRS/M. KOSI¡SKI

Road map to where?

Sergey Lavrov with Rados∏aw Sikorski in Warsaw also said that the new initiative – the first of its kind, he said – will “bring a new quality to [Polish-Russian] relations,” underlining that the two countries will also “cooperate … in order to increase efficiency and trust under the auspices of the Russia-NATO Council.”

The Ukraine question Following a month of turmoil in Kiev after President Viktor Yanukovych refused to sign a trade deal with the EU,

Ukraine was finally bailed out

by Moscow last week to the tune of $15 billion and cheaper gas prices from 2014.

“Ukraine is our strategic partner and ally in every sense of the word,” said Russian President Vladimir Putin upon signing the deal, which did not bind Kiev to join Russia’s customs union.

The move will stall Ukraine’s economy from defaulting in the short term: economists at Danske Bank

said devaluation and credit default risks have decreased significantly, but only until 2015.

Nevertheless, Mr Yanukovych has had to deal with renewed calls for his resignation from opponents, who believe that the deal with Russia will keep Kiev under Moscow’s thumb.

“He has given up Ukraine’s national interests, given up independence,” heavyweight boxer turned opposition

leader Vitaly Klitschko said after the announcement was made, as cited by Reuters.

Meanwhile, in Warsaw Mr Sikorski said that Poland and Russia have “different philosophies” when it comes to Ukraine. In the view of the head of Polish diplomacy, Poland was prepared to back economic reforms in Ukraine, while Russia has supported the “Ukrainian economy just the way it is.”

Mr Sikorski commented on the bailout, saying that “it’s a matter between Russia and Ukraine,” although adding that Poland had also gained a lowering in gas prices this year, “so we are happy that others will also have cheaper gas.”

Speaking on Ukraine’s European aspirations, the Polish foreign minister said that he doesn’t know of any “formal facts which would prevent Ukraine from signing an association agreement with the EU.” He added that any threats of a trade boycott of Ukraine were off the cards.

“No one is stopping Ukraine from developing the best economic ties possible

with other countries,” he said.

Moscow still stalling on Smolensk wreckage Another significant issue the two discussed was the return of the wreckage of the plane that crashed near Smolensk, Russia in 2010, killing President Lech Kaczyƒski and 95 others. Mr Sikorski has said that whenever he meets with his Russian counterpart he asks for the wreckage, which remains in Russia, to be returned.

This time was no different, nor was Mr Lavrov’s oftrepeated response: the wreckage will be returned after Russia’s investigation is over, he said.

“The investigation will, I hope, end very soon,” Mr Lavrov said, adding that it should be complete by April next year, just in time for the fourth anniversary of the disaster.

“The relevant Polish and Russian organizations have already been in contact to arrange the logistics,” he said.

John Beauchamp

NEWS

www.wbj.pl

DECEMBER 23, 2013 – JANUARY 12, 2014

Region

Conflicting reports of Russian missiles on Poland’s doorstep Russian authorities confirm then deny reports that Moscow has deployed shortrange missiles near Poland’s border

eign Ministry said in a statement, adding that “it is a problem for the whole of NATO and one should expect potential consultations and actions within NATO and EU forums.”

planned NATO missile shield are to be stationed in Poland.

Iskander missiles have a range of 500 kilometers, meaning that if they were stationed in Kaliningrad they could reach the interceptor missiles that are due to be sited in Poland.

Iskander missiles can also carry nuclear warheads.

Russia’s neighbors, including Poland, were alarmed by the reports. “Plans to deploy Iskander-M missiles in the Kaliningrad oblast are disturbing and Poland has said so many times,” the Polish For-

Weapons of mass propaganda

COURTESY OF WIKIMEDIA COMMONS

German tabloid daily Bild reported last week that Russia has moved several of their short-range mobile Iskander missiles into its Kaliningrad oblast, placing them within striking distance of Poland and Lithuania.

“Iskander operational-tac-

tical missile systems have indeed been commissioned,” Defense Ministry spokesperson Igor Konashenkov told Russian news agencies.

His words however were contradicted by Russian President Vladimir Putin, who a few days later claimed that “Moscow will place Iskanders in the Kaliningrad oblast as soon as the [NATO] missile shield is operational. Since it’s not yet [operational], the missiles are also not there yet,” he said.

Some elements of the

The missiles are fully mobile and can be deployed anywhere in Russia

Some, however, wonder what all the fuss is about. Stanis∏aw Koziej, head of Poland’s National Security Bureau, told Gazeta Wyborcza that the reports were only a PR tactic without any real threat.

“Russians want to scare ordinary Poles and Germans into pressuring their politicians not to build the US missile shield, as well as NATO’s missile defense program,” he said. He added that the Iskanders can be easily moved, meaning that if Moscow really wanted to strike the NATO installations, it could place them in Kaliningrad within a matter of hours.

But the timing of the reports, coming after Russia has flexed its muscles in Ukraine (see story, p. 3), seems unlikely to be a coincidence.

Jacek Ciesnowski

Graphene production launched in Poland COURTESY OF THE GEORGIA INSTITUTE OF TECHNOLOGY/GARY MEEK

4

Graphene is essentially one ‘layer’ of graphite Nano Carbon, a company coowned by mining giant KGHM and the Industrial Development Agency (ARP), has launched the production and online sales of graphene, an ultra-thin carbon structure.

This is the first such project in Poland, and was hailed a success by Prime Minister Donald Tusk. “It’s a historic moment,” Mr Tusk said at the launch. “We successfully combined the power of invention, the energy of businesspeople and the government’s help,” he added.

“If [such a project] today is a success in such a specific, prospective field as graphene … it means that it must also be possible in other fields,” Mr

Tusk said, also voicing hopes that “the courage and enterprise of these kinds of undertakings will become a Polish specialty.”

Graphene is an ultra-thin nearly two-dimensional carbon structure, which is strong, light and an excellent conductor of heat and electricity. It was “discovered” in 2004 by a team of Russian and British scientists at Manchester University in the UK. The material sold by Nano Carbon was developed by a team coordinated by W∏odzimierz Strupiƒski from the Institute of Electronic Materials Technology in Warsaw, which patented the technology KW, JB in 2011.

6

BUSINESS

www.wbj.pl

DECEMBER 23, 2013 – JANUARY 12, 2014

Insurance

Airlines

PZU fails to acquire Croatia Osiguranje

Bolivian tycoon mulls buying LOT

PZU offered €126.5 million for a 50 percent share in Croatia Osiguranje

The Polish giant was outbid, but says its offer reflected the company’s “real value”

>

Croatian tobacco and tourism group Adris has outbid Poland’s insurer PZU in the privatization process of insurer Croatia Osiguranje (CO), the country’s government announced.

After a long bidding war, Adris emerged victorious by simply offering a higher price than the Polish company.

According to Croatian daily Vecernji list, the latest Adris

offer was €128.26 million (up from its €104.5 million bid) for some 40 percent of CO’s shares.

Meanwhile, PZU lowered its final bid to €126.5 million for a 50 percent share. The previous PZU offer had been much higher at €142.5 million.

But the Polish insurer decided to lower its bid after a due diligence process. “Our final offer reflects the company’s real value. ... During the analysis we found some crucial information that made us change our initial bid,” was the comment posted on the Twitter account of

Micha∏ Witkowski, PZU’s spokesperson.

Now PZU will have to set its sights on another insurer, as the company plans to spend up to z∏.7 billion in the near future on acquisitions both in Poland and in the CEE region.

Croatia Osiguranje is the country’s biggest insurer, with a market share of around 35 percent. The Croatian government, which controls about 80 percent of Croatia Osiguranje, wants to retain between 25 and 30 percent of the company’s shares after the sale.

Jacek Ciesnowski

Bolivian-born businessman Germán Efromovich may consider buying LOT Polish Airlines, he told daily Rzeczpospolita in an interview. “I am certainly looking at Alitalia and LOT,” he said, adding that he should make a decision about a potential takeover within the first two months of 2014.

Mr Efromovich, who owns Colombian airline Avianca, has been planning to enter the European aviation sector for years now. He recently tried to acquire Portugal’s TAP airline, but its privatization process has been suspended.

In order to be able to buy TAP or any other EU-based airline, Mr Efromovich acquired a Polish passport in 2012, as EU law prohibits entities from outside the bloc owning a majority stake in such airlines. For the tycoon, Poland was an obvious choice as his parents emigrated to South America from the country.

Avianca representatives were less enthusiastic about a

COURTESY OF WIKIMEDIA COMMONS

COURTESY OF PZU

Germán Efromovich, who holds Polish citizenship, has expressed interest in acquiring the statecontrolled, cashstrapped airline

Germán Efromovich possible takeover, denying that they were interested in both LOT and Alitalia. An airline spokesperson said Mr Efromovich may have been speaking in a personal capacity, not on behalf of the company.

Legal dispute In the meantime, LOT is involved in a legal dispute that could set it back z∏.4.4 million.

Consultancy firm EY claims that it has still not received due payment for preparing a restructuring plan for LOT. The Polish airline is refusing to pay, demanding that the firm pay for a plan prepared

by PwC, which was imple-

mented instead of the EY plan.

LOT spokesperson Barbara Pijanowska-Kuras claims that EY – knowing that the airline needed to prepare a rescue plan quickly in order to meet deadlines – charged the air carrier four times more than usual, so LOT had to find another advisory (PwC) to finish preparing the plan. ¸ukasz Zalicki, a partner at EY, said that his company had to stop working on LOT’s plan because the airline failed to pay for work EY had already done.

Kamila Wajszczuk, Jacek Ciesnowski

FINANCE & ECONOMICS

DECEMBER 23, 2013 – JANUARY 12, 2014

www.wbj.pl

7

GDP

Better forecasts for economic growth Upward bound Poland’s year-on-year GDP growth (and forecasts), 2000-2014, in % 8 6.8

7 6.2

*World Bank forecast **HSBC forecast

6 5.3 5

5.1 4.5

4.3 3.9

4

3.9

3.6

2.8

3 2 1.2

1.9

1.6

1.4

1.5

Average salary up

Growth in Poland’s industrial production (%), November 2012-November 2013 7.0 Source: Central Statistical Office

5.2 3.4 1.6 -0.2 -2.0 -3.8 -5.6 -7.4 -9.2

p. ’13 Oc t. ’ 13 No v. ’ 13

Se

3

’13 g.

Jul . ’1

Au

3

’13 Jun

3

Ma

y ’1

3

r. ’ 1 Ap

’13

r. ’ 1

Ma

3 . ’1

b.

Fe

Jan

2

c.

De

v. ’ 1

’12

-11.0

The latest figures support expectations that consumption will increase The average monthly salary in the enterprise sector in Poland amounted to z∏.3,897.88 in November, signaling growth of 3.1 percent year-on-year and 1.7 percent month-on-month, statistics office GUS said on December 17.

Economists surveyed by the Polish Press Agency had expected the average salary to grow 3.1 percent y/y and 1.4 percent m/m.

GUS also said that 5.5 million people were employed in Polish enterprises in November and that the figure remained unchanged compared to the previous month, but grew by 0.1 percent y/y, in line with analysts’ expectations.

The data confirmed the continued gradual improvement of the labor market, which should support a rebound in consumption, BZ WBK economists wrote in an e-mailed comment.

The trend should continue

4*

4** 20 1

20 1

*

in the coming months, the analysts wrote, leading to higher growth of unit labor costs and thus pushing inflation upwards. An interest rate hike is likely in the autumn of 2014, they said.

KW

SHUTTERSTOCK

Second-half rebound

No

Industrial output in Poland grew by 2.9 percent year-onyear and fell by 6.2 percent month-on-month in November, statistics office GUS said on December 18. In seasonally adjusted terms, industrial production rose by 4.4 percent y/y and declined 0.3 percent m/m.

Analysts surveyed by the Polish Press Agency expected industrial output to grow by 1.7 percent y/y and decline by 5.5 percent m/m in November.

Production in the construction sector fell by 2.9 percent y/y and by 8.9 percent m/m.

In an e-mailed comment, BZ WBK economists said that

3*

3*

Industrial output rises faster than expected than-anticipated revival of domestic demand,” they said.

Signals of recovery in the construction sector have been increasingly evident over the past months. This most likely reflects a rebound in both private and public sector investment, the KW economists wrote.

20 1

20 1

1

2 20 1

20 1

0 20 1

9 20 0

8 20 0

7

6 20 0

20 0

5 20 0

04 20

3 20 0

1

2 20 0

20 0

Source: Central Statistical Office, World Bank, HSBC

Labor market

both total output and construction sector data surprised on the upside.

“Sectors exposed to external markets continued to perform better than others. Still, we suspect that the positive developments in output rely more and more on a faster-

1.4

0

Production

The data indicate a surprisingly quick revival of domestic demand

3.0

1

0

Poland’s gross domestic product is expected to grow by 1.5 percent in 2013 and by 2.8 percent in 2014, according to the latest regional economic forecast from the World Bank. The institution had earlier expected the growth to be 1.0 percent this year and 2.0 percent next year.

According to the report,

Poland’s GDP growth will amount to 1.4 percent yearon-year in 2013 and then accelerate to 3.0 percent in 2014 and 3.3 percent in 2015.

In an earlier forecast the bank saw the growth at 1.0 percent this year, then 2.6 percent in 2014.

HSBC said that it decided to raise the forecast after Poland recorded higher-thanexpected growth in the second quarter of 2013. The economic rebound will not be much stronger in 2015 due to poor perspectives for the euro zone, HSBC economist Agata Urbaƒska-Giner wrote in the KW report.

economic activity in the EU11 region (Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) started strengthening in Q2 2013 thanks to more confidence triggered by signs of a recovery in the euro zone.

Poland is seen as one of the fastest-growing economies in the region, behind only to Romania, Lithuania and Latvia. GDP growth in those countries this year is expected to be 2.2 percent, 3.0 percent and 3.9 percent respectively.

Meanwhile, according to HSBC’s most recent forecast,

20 0

The World Bank and HSBC are the latest institutions to increase their predictions for Poland’s GDP growth in the coming years

Employers put more money in Poles’ wallets in November

8

COVER STORY

www.wbj.pl

February launch for new monthly

DECEMBER 23, 2013 – JANUARY 12, 2014

All the news fits

➡ Continued from p. 1 Meanwhile, WBJ Group is launching a new print magazine, WBJ Observer, which will debut in February. “We know our readers want hard, actionable news as soon as we can get it to them, but we’re also still big believers in print,” Mr Reyher said. WBJ Observer also will have a digital edition that will offer enhanced advertising options.

The monthly will take a more thoughtful, analytical look at the Polish market’s continuing development, and give the former WBJ weekly’s advertisers a more interesting print vehicle, Mr Reyher said.

The debut issue’s cover story package will look at four key areas — IT, the defense industry, Polish exports and energy.

“You can pretty much layer IT over every other business or industry,” Mr Reyher said.

“And Poland is well-advanced in that revolution – just look at what’s happening in our banks,” he added. “There are a lot of interesting stories out there that are going untold, from things happening in big industries down to some young guys developing little things that have a shot at being big,” Mr Reyher said.

WBJ Observer will have an expansive section on real estate, and regular commentary on the Polish political scene, the economy and Poland-EU issues, Mr Reyher said. The new magazine will debut with an in-depth interview with Polish economist Stanis∏aw Gomu∏ka, one of the architects of Poland’s transition to the free market more than two decades ago, as well as a feature on Fun in Design, a Warsaw startup that lets customers design their own shoes via the internet.

“I’ve been in Poland since 1992, and the scene here is as fascinating and colorful now as it was then,” Mr Reyher said.

“WBJ Observer will reflect that.” ●

WBJ.pl, which will relaunch next year, will be available on in digital form for desktop and laptop computers, tablets and smartphones.

IV edition of Zacznij.biz competition Jury members are now choosing the best business plans.

A second phase of the Zacznij.biz competition has started. The members of the Zacznij.biz

participants. Selected contestants were invited to take part in the Innovatorium I (November, 28-29, 2013). The purpose of this workshop was to deliver the knowledge of business angels projections and valuations. The workshops were conducted by Szymon Kurzyca, an investment expert from Lewiatan Business Angels (LBA) and Maciej Strzębicki, marketing expert cooperating with LBA. After Innovatorium I participants had time to improve their business plans, which are now being voted on by the jury. Members of the Zacznij.biz jury include: Szymon Kurzyca, Aniela Hejnowska (Groupon Polska), Jolanta Kramarz-Linkowska (business angel), Daniel Lewczuk (business angel), Wojciech Kuźmierkiewicz (Polpharma) and Maciej Strzębicki. The jury will choose then the Finally the best ideas will be presented to attract interest of potential investors from Lewiatan Business Angels.

Honorary patronage of the Zacznij.biz competition: Ministry of Economy, Polish Agency for

Zacznij.biz – idea – business – success, is a business plan competition organized by Confederation Lewiatan and Lewiatan Business Angels. On September 16, 2013, the fourth edition of the Zacznij.biz competition was launched. The deadline for submitting the projects was November 12, 2013. The purpose of the contests is to promote entrepreneurship, as well as to assist entrepreneurs in preparing plans for their business and to help them attract investors – business

model are of key importance.

www.zacznij.biz.pl

Material co-funded by the European Union under the European Regional Development Fund

COVER STORY

DECEMBER 23, 2013 – JANUARY 12, 2014

Q&A: WBJ in transition Answers to questions you may have about the upcoming transition for WBJ Group Q: What’s really behind the changes?

A: It’s no secret that “traditional” media, especially print media, need to be retooled and repositioned to thrive in the current media landscape.

We’re embracing the model we’ve seen other successful business publishers adopt. The mantra is “in print, online and in person.” These days that means a magazine, a webbased news service and events where our readers and advertisers can mix it up in person.

Q: I have been a subscriber to the weekly Warsaw Business Journal newspaper. What happens to my subscription?

A: We’ll apply whatever credit you have on your current subscription to a WBJ.pl subscription, send you a user name and

password and you can log in to continue to enjoy the many features you’ve been getting in the weekly Warsaw Business Journal plus content from our daily newsletter Poland A.M. Alternatively, you can apply your subscription credit to our new monthly, WBJ Observer.

Q: I’m a subscriber to Poland A.M. What do the changes mean for me?

A: Instead of getting an e-mail newsletter each day, paying Poland A.M. users will be assigned unique user names and passwords. You’ll just sign in and log on to get to the Poland A.M. section of WBJ.pl. Plus, you’ll have access to all other WBJ.pl content that has moved over from the weekly – at no extra charge.

Q: My firm is currently in the middle of an annual advertising contract with WBJ Group.

Where does that leave me?

A: Our sales associate will be

in contact with you soon to talk about how you can best use your remaining credit with us, and to maximize your exposure through our retooled B2B channels.

Q: Aside from pure advertising, how can I get information on my company in the WBJ Group environment?

A: We’re always looking for expert commentary and analysis from market players. And WBJ.pl has limitless space for these kinds of features. Of course, our editors make the final call on content going into our products, but we’re open to contributions. Also, we’ll have a section on WBJ.pl that is specifically designed for press releases, which can be sent to wbj@wbj.pl.

Q: What if I want to get some information in WBJ Observer?

A: We have a wide range of options for that as well, but print, by nature, is more limited. Our editors, therefore,

must be more selective. Still, we have some creative ways to accomplish this.

Q: What are my advertising options on WBJ.pl?

A: We’ve worked hard to develop a wide range of advertising options that are not intrusive to the user, and to get your advertising in the most effective context. Our sales associates will work with you to maximize your spend. Video, text ads, and other most contemporary online advertising options are available.

Q: If WBJ.pl content is behind a pay-wall, that limits the traffic. How do I know I’ll get the exposure I’m looking for?

A: Content on WBJ.pl will be a combination of paid and free.

We already have a solid base of unique users from all over the world via our current WBJ.pl site. We’ll be very active using social media to significantly boost traffic from our current base. ●

Reyher to lead WBJ Group An introduction to Kehrt Reyher, WBJ Group editor and publisher Kehrt Reyher is the new editor and publisher of Valkea Media’s Warsaw Business Journal Group.

Before joining WBJ Group, Mr Reyher was founder, president and chairman of the supervisory board of VFP Communications, publisher of Media & Marketing Polska, Poland’s first magazine about marketing communications (1993), which was sold to Deutscher

Fachverlag of Frankfurt in 2008.

In Poland he also served as an advisor to the Polish tabloid Super Express, and conducted seminars and journalism training in Poland throughout the Kehrt Reyher 1990s.

An American, Mr Reyher worked as a newspaper reporter, editor, art director

and designer in the US for 15 years, where his career included stints at the (Indiana-based)Terre Haute Tribune-Star (his hometown newspaper), the Providence Journal (Rhode Island), The Detroit News and USA Today.

He holds a master’s degree in journalism from Indiana University.

He is also director of The Nak∏o Foundation, which supports education, economic development and Polish culture in the local administrative district of Lelów, northeastern Silesia.

He has lived in Poland since 1992. ●

A day full of possibilities M

y favorite cartoon ever drawn is the final strip of the iconic “Calvin and Hobbes” series, by fellow Kenyon College alumnus Bill Waterson.

In it Calvin and his imaginary tiger friend Hobbes go outside on a cold winter morning to find their world covered in snow. The thick, bright-white coating has made their familiar surroundings look brand new.

“A fresh, clean start,” says Calvin. “It’s like having a big white sheet of paper to draw on,” replies Hobbes.

They climb on their toboggan and go racing down a hill. “Let’s go exploring!”

Calvin exclaims, and readers’ last image of the two friends is them racing down a hill toward new adventures.

I’ve been thinking about that strip a lot of late, as the new year approaches and my familiar home of Warsaw is soon to be covered in a blanket of fresh, white snow. I’m an editor, not a cartoonist, so for me such scenes always resemble a white sheet of paper to write on. Who knows what I’ll end up with once I start putting down words? As Calvin says, it’s “a day full of possibilities.”

Indeed. The time has come for me to make my own fresh start. After nine years

with Warsaw Business Journal and nearly seven as its editor-in-chief, I am stepping down to pursue new opportunities.

I leave both proud of WBJ’s accomplishments while I’ve had the pleasure of leading it and excited for its bright future. It’s a new day for WBJ as well, as you will read in the accompanying pieces here, and I am unequivocally convinced that the changes being implemented are the right and only direction for WBJ in which to move forward.

The publication is stepping into the future Andrew Kureth with a cadre of brilliant journalists of unquestionable work ethic and integrity – names that you have come to know mostly over the past year: Remi Adekoya, John Beauchamp, Jacek Ciesnowski, Beata Socha and Kamila Wajszczuk. Their work will continue to be presented in clear but engaging layouts and graphics courtesy of production manager Piotr Wyskok and graphic designer ¸ukasz Mazurek. This is a team that

exudes professionalism and quality. I will miss working with them greatly.

Leading them into the future is new editor and publisher Kehrt Reyher, who was briefly with the WBJ when it started.

After already having led a successful career in media in Poland, Kehrt has come full circle. Since he has joined the team I have come to see that he is precisely the right person at the right time for WBJ. I wish him and the entire team the utmost success in taking the publication along its new path.

Finally, dear readers, I want to extend my heartfelt thanks to you. You have held this newspaper to a high standard, one I have endeavored to ensure it lives up to.

Your continued patronage has proven that Poland needs high-quality business information in English. Serving you in this respect has provided me with great satisfaction.

Most of all, thank you for the trust you have put in Warsaw Business Journal.

Every decision I have made as editor-inchief I have made with that trust in mind. I hope that I have lived up to the expectations it has dictated.

I sign off, grateful to all those who have traveled this road with me and eager to see what the future holds. For me and for WBJ, a fresh, clean sheet of paper awaits. ●

www.wbj.pl

9

10

YEAR IN REVIEW

www.wbj.pl

DECEMBER 23, 2013 – JANUARY 12, 2014

2013 in review

2013 was marked by political turmoil within the Civic Platform ruling party, with a number of resignations from high-profile MPs throwing the coalition majority into doubt. Prime Minister Donald Tusk went ahead with a major cabinet reshuffle, pinning his hopes on better results in voter surveys before elections in both 2014 and 2015. What else did 2013 hold for Polish politics and business? Remi Adekoya reviews the year that was January

Prime Minister Donald Tusk called it “one of the happiest days” of his life.

That same month, the prime minister carried out a cabinet reshuffle appointing Finance Minister Jacek Rostowski as deputy prime minister. Mean-

A Saudi ctitizen, Abu Zubaydah, filed a lawsuit against Poland with the European Court of Human Rights in

May The European Commission temporarily approved the z∏.400 million financial aid that the Polish government granted the troubled national airline LOT. Also, doctors from the Cancer Center and Institute of Oncolo-

Lech Wa∏´sa offended many with his comments In a major cabinet reshuffle, Finance Minister Jacek Rostowski was replaced by Mateusz Szczurek, an economist for ING Bank in Poland. Regional Development Minister El˝bieta Bieƒkowska was appointed deputy prime minister and was called on to head a new ministry which will incorporate the Transport Ministry.

Following the resignation of Digitization Minister Micha∏ Boni, MEP Rafa∏ Trzaskowski was called in to replace him.

Meanwhile, Higher Education Minister Barbara Kudrycka was replaced by a professor and MEP, Lena Kolarska-Bobiƒska.

Joanna Kluzik-Rostkowska took over from Krystyna Szumilas as Education Minister while Sports and Tourism Minister Joanna Mucha, who oversaw much of Poland’s preparations for the Euro 2012 soccer championships, was replaced by Andrzej Biernat.

Finally, Environment Minister Marcin Korolec was dismissed and Maciej Grabowski took over his position.

would challenge Mr Tusk for the leadership of the ruling Civic Platform party.

Meanwhile, Edward Snowden, the former National Security Agency contractor who leaked details of secret US and British surveillance programs, was denied asylum in Poland.

August Prime Minister Donald Tusk defeated Jaros∏aw Gowin to retain leadership of the ruling party. Mr Tusk received roughly 80 percent of the vote. Meanwhile, Poland’s first black parliamentarian John Godson quit Civic Platform, opting instead to become an independent MP. Mr Godson, a conservative evangelical Christian, cited party pressure on him to forgo his conservative views on ethical issues as the reason for his decision.

Still in control September

March March started out with the announcement of former president Aleksander KwaÊniewski that he would be teaming up with controversial MP Janusz Palikot to create a new centerleft political grouping called Europe Plus. Mr KwaÊniewski was criticized for the move by leaders of the party he co-created in the 1990s, the Democratic

Strasbourg. Mr Zubaydah said he was held at a CIA “black site” in Poland between 2002 and 2003, where he says he was tortured.

Meanwhile, on the eve of the highly politicized third anniversary of the tragic April 10, 2010 plane crash in Smolensk, Russia, which killed president Lech Kaczyƒski and 95 others, a Homo Homini poll revealed that 32 percent of Poles believe the catastrophe was not an accident but in fact an assassination. Less than half – 49 percent – of Poles were found to believe the find-

gy in Gliwice successfully carried out the world’s first face transplant under life-threatening conditions.

June In June, Poland’s lower house of parliament, the Sejm, passed measures hoping to increase Poland’s low fertility rate of 1.3 children per woman. Polish parents will now be able to take a full 52 weeks of paid leave to take care of their newborns – an extension from the previous 24 weeks.

Meanwhile, during Polish Foreign Minister Rados∏aw Sikorski’s trip to Washington, US Secretary of State John Kerry said that the United States would like Poland to be part of its Visa Waiver Program.

Poland’s exclusion from the program has been a major sticking point in relations between the countries in recent years.

And in one of the biggest financial news stories of 2013, Poland’s largest lender PKO BP took over the Polish assets of Nordea in a z∏.2.8 billion deal.

After John Godson’s departure from Civic Platform in August, the ruling party lost two more MPs, as former Justice Minister Jaros∏aw Gowin and his political ally, Jacek ˚alek, quit the party. Both conservative politicians accused Mr Tusk of veering the party to the left on social and economic issues.

Also, Prime Minister Donald Tusk announced that Polish private pension funds would have to transfer 51.5 percent of their assets to the state-run Social Insurance Institution (ZUS). Mr Tusk said the private pension system had proven “too costly.”

October Hanna Gronkiewicz-Waltz, the mayor of Poland’s political and economic capital, Warsaw, survived a recall election.

Although 93 percent of the Varsovians who took part in the recall voted to boot Ms Gronkiewicz-Waltz out of office, not enough people turned out to render it valid.

November July As Donald Tusk’s popularity slumped to an all-time low, with only 23 percent of Poles approving of his work as PM, former Justice Minister Jaros∏aw Gowin announced he

US Secretary of State John Kerry visited Poland. In Warsaw, Mr Kerry confirmed his country’s plans to build a missile defense shield in Poland which should be in place “around 2018.”

December Dozens were arrested in what has been described as the “biggest corruption case in

COURTESY OF PLATFORMA OBYWATELSKA

while, Bart∏omiej Sienkiewicz, who co-created the Centre for Eastern Studies think tank, took over as interior minister.

February In February, EU leaders agreed on a budget for the years 20142020. It emerged that Poland would receive €106 billion over the period compared to the €101.5 billion that it got in the 2007-2013 budget framework.

Cohesion policy funds were set to increase from €69 billion to €72.8 billion while funds for agriculture would rise from €26.9 billion to €28.5 billion.

April

ings of the official Polish government investigation into the catastrophe, which put the disaster down mainly to pilot error.

Treasury Minister Miko∏aj Budzanowski was dismissed by the prime minister and replaced with W∏odzimierz Karpiƒski, while Justice Minister Jaros∏aw Gowin lost his position to Marek Biernacki.

COURTESY OF FLICKR/PLATFORMA RP

Things kicked off with news emerging that Poland’s national air carrier LOT was in financial distress and had requested z∏.400 million in immediate state aid. Marcin Piróg was dismissed from his post as CEO of the company after Treasury Minister Miko∏aj Budzanowski blamed him directly for the state of affairs at LOT. Later that month, Adam Maciejewski was appointed as the new president of the Warsaw Stock Exchange. Mr Maciejewski replaced Ludwik Sobolewski, who had run the WSE since 2006.

The former bourse head was dismissed by the WSE’s supervisory board following accusations that he had been involved in soliciting funds from companies listed on the stock market in order to support a movie featuring his girlfriend.

Also in January, Poland’s lower house of parliament, the Sejm, rejected three different legislative proposals to sanction civil partnerships. Some Polish conservatives see such legislation as a prelude to the legalization of homosexual marriage.

Left Alliance.

Meanwhile, Prime Minister Donald Tusk weathered a vote of no-confidence in parliament while former president Lech Wa∏´sa caused an outcry after saying that gay MPs should sit in the “back row” of the parliamentary chamber, if not “behind a wall.” The anti-communist hero was roundly criticized by gay rights activists but refused to apologize for the comments.

COURTESY OF THE EUROPEAN PARLIAMENT

The year of the shake-up

Ms Gronkiewicz-Waltz survived a bruising recall battle Poland’s history” by the head of the Central Anticorruption Bureau. The case involves rigged IT tender bids worth billions in some of Poland’s ministries.

Protests erupt in Ukraine after the country’s President Viktor Yanukovych decided not to sign a free trade deal with the European Union. Poland was one of the countries that pushed hardest for the deal. ●

A calender overview of the changes to Polish legislation in 2013 14

Changes to tax law

The pension fund overhaul 12

13

LAW IN POLAND BROUGHT TO YOU BY MAGNUSSON

A

s p e c i a l

s u p p l e m e n t

o n

c h a n g e s

t o

P o l i s h

l a w

•

DECEMBER 23, 2013 – JANUARY 12, 2014

Upcoming changes to Polish law in 2014

Bartosz D´bski Partner, Magnusson bartosz.debski@magnussonlaw.com

T

he Polish parliament has recently slowed down in its adoption of new laws compared to previous years. While around 240 new acts were adopted in 2010 and 2011, the number dropped to around 150 in 2012 and 2013.

Only some of these acts have brought significant changes. The majority have concerned only small amendments to existing laws. This means that the law in Poland is becoming increasingly stable and has started to develop in a more incre-

mental, evolutionary rather than revolutionary way. The advantage is that it is easier for everyone to keep abreast of the changes. The disadvantage is that there is still much to do to improve the Polish legal system in order to help make Poland a better country for living and doing business in and for many these improvements are not happening quickly enough.

The trend of evolutionary development should generally continue in 2014, as few significant changes are expected.

atively affect the Polish capital market and the growth of the Polish economy in the long term. Taking into consideration its significance, the

Pension fund reform

reform will probably be the most commented on and publicly discussed piece of legislation to be adopted in the near future.

For more, please read the article

by Kamil Stelmach (p. 12).

Of all the changes planned for 2014, the reform of the pension system seems to be the most important and comes close to being “revolutionary.”

The reform aims to strengthen the public finances at the expense of open pension funds, whose role would be diminished. The change will significantly affect the economy and will have an impact on a large part of society.

Supporters of the reform claim it is necessary to balance public finances and to secure the payment of pensions in future. On the other hand, opponents maintain it will neg-

“There is still much to do to improve the Polish legal system.”

Waste management change Other important amendments concern rules on waste management by municipalities. The new waste management rules entered into force in 2013 and were supposed to launch Poland’s so-called “waste revolution.” Most importantly they were aimed at the more ecological and efficient treatment of waste.

Unfortunately for the time being, these goals are not being achieved – or at least that they are being achieved far too slowly. In addition, the regulations have triggered a host of technical and legal problems for municipalities.

Consequently, there are several legislative initiatives in preparation to improve the regulations. These initiatives are discussed in more detail by Zuzanna Wencel-Czuryszkiewicz (p.

14).

Renewable energy approaches To move forward with environmentfriendly legal initiatives, many businesses hope that the government will finally complete its work on the Renewable Energy Act in 2014. The law has been desperately sought-after by the renewable energy industry for several years now. It was set to be adopted in 2010 to implement the European Renewable Energy Directive. Many investors withheld their projects for several years in anticipation of the benefits that the new law would bring.

Unfortunately, the global economic crisis, as well as apparent

changes in the government’s attitudes towards climate and energy policy, meant that legislative work has been delayed and the recently proposed system of incentives has been modified wholesale as compared with initial versions of the act.

In the meantime, several large wind-farm developers and a number of smaller companies in the renewable-energy sector have lost patience, sold their operations and moved out of Poland.

The fourth version of the draft act provides for the introduction of an auction system with an aim to find the cheapest producers of energy from a given renewable energy source. The winners of these auctions would be offered guaranteed feed-in tariffs for a certain period. The system would replace the current one based on socalled “green certificates,” which would only apply to installations operating before the new law comes into force. For more, please read the article by Olav Nemling (p. 12).

Tax law modifications A number of modifications will also be introduced into Poland’s tax Continued on p. 13 ➡

Changes in Polish law in 2013 Hot topics

Przemys∏aw Kastyak, partner, Magnusson przemyslaw.kastyak@magnussonlaw.com

T

he year 2013 did not bring as many significant changes to Polish legislation as 2011 and 2012 did. However, three big changes have been widely debated and have divided public opinion. These are: the gradual rise of the retirement age for both genders to 67 years of age, the overhaul of open pension funds, and waste management reform.

The rise of the retirement age, although actively opposed by a wide range of various social groups, finally became law. This change was vital, since Poles, like other Europeans, are living much longer than they did in the 20th century, when state pension systems were implemented.

Looking at the issue from the other end of the age spectrum, the process of lowering the age when children start school (from 7 to 6 years of age), will eventually bring ZUS one additional year of premiums from each payer. This process will likely be completed within the next two years, and while the official justification for the reform was completely different, the pensions factor seems to be the real ratio legis.

The transfer of open pension funds’ bond holdings to the state-controlled Social Insurance Institution (ZUS) was one of the hottest topics in 2013; for more details please see the article by Kamil Stelmach (p. 12).

It has not finally been decided whether the new regulation, adopted by parliament on December 6, 2013, will come into force, because it still requires President Bronis∏aw Komorowski’s signature. The presi-

dent has 21 days to sign the Act, refuse to sign it, or ask the Constitutional Tribunal to evaluate whether it is in line with the constitution.

So far, a group of 200 renowned lawyers and economists have issued official letters to the president encouraging him not to sign the con-

“The transfer of open pension funds’ bond holdings to the state-controlled Social Insurance Institution (ZUS) was one of the hottest topics in 2013.”

tion to collect waste to municipalities in order to strengthen control over waste collection and increase the percentage of recycled or ecologically burned waste. However, the reform’s initial implementation was disastrous. In many cases the tenders announced to choose waste-collection companies were invalidated or won by companies offering rock-bottom prices – that is, companies intending rather to store waste than use modern segregating, recycling or burning technologies.

In addition, a part of the new regulation was declared unconstitutional. As a result, parliament is urgently working on a significant amendment of the law. For more information on this issue, please see the article by Zuzanna Wencel (p. 14).

New technologies troversial Act, arguing that it constitutes state appropriation of private savings.

The waste-management reform is a good example of a popular Polish saying: “We wanted good, but it turned out as it usually does.” The aim of the reform was to transfer the property of the waste and the obliga-

There has been more progress in implementing new technologies to make doing business easier. After providing internet access to the Companies Register in 2012, time has come to improve internet access to the Land and Mortgage Register. As of December 2013 official excerpts from the Land and Mortgage Register may be obtained via the internet,

which will obviously simplify property transactions.

Infrastructure After almost a complete lack of new tenders in 2012, the impatiently awaited EU 2014-2020 budget finally materialized. As a result, the Polish government, along with with the General Directorate for National Roads and Motorways (GDDKiA), launched a new, impressive, highway development program. Its aim is that by 2020 Poland will develop enough dual-carriageways so that they can honestly be called the “Polish highway network.” Starting in autumn 2013, GDDKiA has announced new tenders for highway construction at a rapid pace, including an impressive z∏.7 billion project to complete the Warsaw’s southern ring road.

Continued on p. 13 ➡

In this supplement Legal changes expected in 2014 . . . . . .11, 13 The changes made in 2013 . . . . . . . . . . .11, 13 Open pension fund overhauls . . . . . . . . . . . .12 Renewable energy law . . . . . . . . . . . . . . . . . .12 Changes to tax law . . . . . . . . . . . . . . . . . . . . .13 Waste management law . . . . . . . . . . . . . . . .14 Public procurement . . . . . . . . . . . . . . . . . . . . .14 2013 calendar overivew . . . . . . . . . . . . . . . . .14

12

www.wbj.pl

LAW IN POLAND

DECEMBER 23, 2013 – JANUARY 12, 2014

Open pension fund overhaul Kamil Stelmach Magnusson kamil.stelmach@magnussonlaw.com

On

November 22, 2013, the government submitted a draft amendment to the system of social insurance to the Sejm, the lower chamber of Poland’s parliament.

Back in 1999, Polish lawmakers adopted a hybrid social insurance system based on mandatory contributions distributed between a state public law institution called the Social Insurance Institution (ZUS) – and open pension funds (OFEs), which are managed by private institutions .

Currently, the most significant amendments proposed in the bill

regard a compulsory transfer of a part of bond assets (including Polish treasury bonds and bonds guaranteed by the State Treasury) from OFE to ZUS. Consequently, the investments of the financial resources by OFE would be restricted to stock and foreign bonds.

In addition, according to the proposed amendments, the insured will be granted four months to declare

whether they want to divert their contributions entirely to state-controlled ZUS or continue contributing a portion to the OFEs. They will be allowed to review their decision in 2016 and every four years afterward.

Even if one stays with OFEs, social insurance contributions accumulated in private funds will be gradually transferred to ZUS over the last

10 years before the insured reaches retirement age.

Apart from assuring retirement security and efficiency, the bill aims to reduce the public debt by the equivalent of 8 percent of Poland’s gross domestic product. According to the government, the above-mentioned amendments shall come into force at the beginning of 2014. ●

New law on renewable energy Olav Nemling Magnusson olav.nemling@magnussonlaw.com

In

2013 investors awaited the Renewable Energy Sources Act (“RES Act”), but the legislative process has been stuck for another year. As coal and lignite firing are still dominant, with a 90 percent share of the Polish energy mix, the traditional Polish energy sector, including a number of state-owned companies, is delighted. However, the infringement procedure recently requested by the European Commission sped up the legislation process necessary to implement the Directive of the European Parliament and of

the Council 2009/28/EC on the promotion of renewable sources (“RES Directive”).

Consequently, a new proposal of the supporting scheme was presented on September 17, 2013 by Poland’s Ministry of Economy. The proposal provides for a transition from the certificates system to a variation of the feed-in tariff model. Support will be granted to each project separately, by way of an auction conducted by the president of the Energy Regulatory Office (URE).

Auctions will be conducted electronically at least once a year for a maximum value and volume of energy pre-defined by the Minister of Economy. Separate auctions will be

held for installations launched prior to and following the entry into force of the RES Act as well as for installations with a capacity up to 1 MW and for purchase of energy produced from agricultural biogas.

The president of the URE will set a reference price being the maximum price of the auction. The draft RES Act identifies 17 categories of renewable energy sources and capacity thresholds for which separate reference prices will be set. The winner of the auction will be obliged to sell energy every three years at a fixed price as determined in the bid. In the event that the producer fails to produce the volume of energy declared at the auction, the

BROUGHT TO YOU BY MAGNUSSON

president of the URE will impose a penalty.

It is proposed that for participation in the auction a certificate issued by the president of the URE upon an assessment of the energy producer and the project will be required. In particular, a copy of the building permit for the project, as well as a copy of the local zoning plan or a copy of a zoning decision will be assessed before a certificate is issued.

The industry is highly critical of this proposal because the costs for developing a project until the issuance of a building permit are significant. It would be more cost-effective for investors if they were admitted to the auction at an earlier stage.

In addition, upon commencement of the auction participants will have to effect a cash deposit in the amount of z∏.30.00 per kW of capacity of the installation. Alternatively, a bank or insurance guarantee may be submitted.

Besides the new auction system described above, the current system of certificates will remain in force until December 31, 2021. While the auctioning system will apply to energy producers commencing operations after entry into force of the RES Act, producers already operating on the market will be able to choose between the certificate system and the auctioning system, subject to fulfillment of several conditions. ●

DECEMBER 23, 2013 – JANUARY 12, 2014

LAW IN POLAND

www.wbj.pl

13

Upcoming changes to Changes in Polish law Polish law in 2014 in 2013

➡ Continued from p. 11

Other possible reforms

laws. The most interesting of them for business will be the taxation of joint-stock partnership as a separate entity, which means that joint-stock partnerships will no longer be taxtransparent. The other alternation will be a change of the moment when an obligation in value added tax arises. The tax obligation will now arise when goods are delivered or the service is rendered and not when the invoice is issued, as was the case previously. For more, please read the article by Tomasz Rysiak below.

Except for these changes, a much more extensive reform of tax laws has been announced by the new Minister of Finance. According to the minister, the reform should involve the preparation of completely new tax laws which should enter into force within the next few years. The aim of this reform is a simplification of the rules.

This is not a new idea of course, and the new Minister is not the first to have come up with the idea. Taking into account the fact that many previous attempts to reform the tax system have failed, even if they have been advocated by ministers with much stronger political support, most people are a bit skeptical about the possibility that these plans will be realized.

To sum up, there are only several important changes which have been announced for 2014. In addition, there is a chance that some other meaningful amendments may also be adopted soon.

One controversial piece of legislation has been proposed by President Bronis∏aw Komorowski, which aims to protect the Polish landscape, mainly against the invasion of outdoor advertisements and the uncontrolled development of wind farms.

The proposal has been welcomed by most in society, since many are wary of the destruction of the Polish countryside.

On the other hand, the proposal is being fiercely attacked by a strong lobby of SMEs, the advertising industry and wind-farm developers. Therefore, we cannot be sure what the outcome of parliamentary work on this piece of legislation will be.

What is more, a much larger and much-needed reform of the rules for the development of the Polish countryside and urban areas is approaching. The most important goal of this reform would be to curb the problem of the spontaneous urbanization of rural areas, especially around larger cities. The problem of suburbanization is more serious and costly than the one which was observed in Western Europe during the decades following World War II. This is due

to the fact that Polish urban sprawl is much more chaotic and uncontrolled than that in Western countries. This is a consequence of an overly liberal approach to construction adopted directly after the fall of communism, when any kind of restrictions of ownership, including zoning, was associated with communism and had negative connotations for the newly liberated society.

Consequently, over the last 20 years the ownership right to land has become almost synonymous with the right to the unrestricted development of this land. This has led to development chaos and a sharp increase in the costs of creating public infrastructure such as roads, media infrastructure and schools in sparsely and chaotically populated areas around cities, while the existing infrastructure in the cities is not sufficiently used and is thus wasted.

Fortunately, the problem has been noted by the government and work on the necessary reforms is ongoing. This should continue in 2014 under the close supervision of the new Ministry of Infrastructure and Development, led by the dynamic and experienced El˝bieta Bieƒkowska.

Fingers crossed. Let’s hope that the reforms essential for Poland’s sustainable development will continue in the coming years. ●

➡ Continued from p. 11 This offers hope to construction companies, which have struggled over the last few years. Nevertheless, they continue to warn that the public tender system, as well as tender criteria typically set by GDDKiA, still require crucial amendments in order to stop price wars between general contractors.

Such battles artificially lower prices, often leading to bankruptcies of construction companies and costly delays.

As far as construction and planning are concerned, 2013 was another year of disappointment.

Although regulations making the development process easier and bringing order to zoning in Polish towns are immediately necessary, no major changes to the Construction Law and the Spatial Planning Law have been introduced. The stagnation has lasted since 2011, when the Constitutional Tribunal rejected the previous attempt at far-reaching amendments to Poland’s Construction Law.

Other changes All the forecasts leave no doubt that within 20-30 years the number of working people in comparison to

the number of pensioners must result in the breakdown of Poland’s social security system. The extension of payable parental leave up to one year altogether, and non-payable childcare leave until the child is five years old, should encourage more Poles to become parents and perhaps stop the decline in Poland’s population.

Polish energy law reform continues, but not many crucial changes were implemented in 2013. The one exception worth mentioning is a new regulation aimed at making Poland’s gas market more competitive, by requiring gas distributors to trade 30 percent of natural gas through a commodity exchange.

However, further significant changes are expected in 2014.

Finally, the regulations aimed at further limiting the monopoly of the Polish Post must be mentioned and assessed as positive. While the Polish Post has still retained certain privileges, 2013 brought the long-awaited change that allowed private firms to deliver letters of 50 grams or lighter. This has allowed these other operators to cease the practice of adding artificial weight to their letters in order to avoid the restrictions. ●

MODIFICATIONS TO TAX LAW Tomasz Rysiak Magnusson tomasz.rysiak@magnussonlaw.com

It

is almost a tradition that the beginning of the year results in a number of changes to the Polish tax law. 2014 continues this long-lasting tradition. The changes to the Polish tax law were triggered by a number of various factors, such as budget needs, administrative court rulings favorable for taxpayers, or the necessity to adjust the Polish tax law to EU regulations.

The most debated change to the Polish tax law planned for 2014 was the issue of taxation of limited jointstock partnerships (spó∏ka komandytowo-akcyjna) and limited partnerships (spó∏ka komandytowa). Until 2014, income tax was paid by the partners/stockholders in such partnerships, while the partnerships were not taxpayers of the income tax.

Moreover, the stockholders in the limited joint-stock partnerships were obliged to pay income tax upon the receipt of the dividend from the partnership, which made a limited jointstock partnership a very tax-efficient

vehicle for investments.

In reaction to the high interest in limited joint-stock partnerships, the Ministry of Finance decided to implement a regulation which would make limited joint-stock partnerships and limited partnerships registered taxpayers of the corporate income tax. The Ministry of Finance’s proposal was strongly opposed by tax practitioners and entrepreneurs who criticized both the rationality of implementing the new regulations, as well as their timing, which has not left much time for entrepreneurs to adapt to the new law.

Finally, the Polish parliament decided that starting from January 1, 2014, a joint-stock limited partnership will become registered taxpayer of the corporate income tax, while the tax status of a limited partnership will remain unchanged. Consequently, starting from 2014, a joint-stock limited partnership will pay corporate income tax at a rate of 19 percent on rules similar to those applicable to limited liability companies and joint-stock companies.

VAT amendments The Polish parliament also decided to introduce some amendments to

Polish VAT regulations. The most significant change is the shift of the rules governing the moment when the liability to pay VAT on the supply of goods or services arises. Until 2014, pursuant to the general rule, tax liability arose at the date when an invoice was issued but no later than seven days after the supply of the goods or services.

Starting from 2014, the general rule is that tax liability will arise at the moment when the goods were supplied or the service was rendered, regardless of the date when the invoice was issued. In practice, the amended VAT regulations will force VAT payers to report VAT earlier than it takes place on the basis of VAT regulations applicable until 2014.

It should be noted that issuing an invoice will still trigger tax liability with respect to the supply of certain goods or performance of certain services, such as electricity, gas, telecommunication, or leasing services.

The changed regulations regarding the date when tax liability arises are reflected in the changed regulation on the right of a VAT payer to

BROUGHT TO YOU BY MAGNUSSON

deduct the VAT incurred on the purchase of goods or services. Pursuant to the new general rule applicable as of January 1, 2014, the right to deduct input VAT is no longer linked to receipt of the invoice, since the VAT payers will be entitled to deduct input VAT in the reporting period in which the tax liability of the seller has arisen.

Car purchases 2014 also brings new regulations on the right to deduct VAT on the purchase of cars used for business purposes. Pursuant to Polish VAT regulations, based on the decision of the European Commission applicable until 2014, the right of entrepreneurs to deduct input VAT on the purchase or lease of a car used for business purposes was limited to 60 percent of input VAT, not more however than z∏.6,000.

Theoretically, starting from January 1, 2014, entrepreneurs should be entitled to deduct the full amount of input VAT incurred on the purchase or lease of passenger cars with a grid installed in the interior. However, the Polish Ministry of Finance

applied to the European Commission to extend the applicability of the temporary provisions allowing Poland to limit the right of entrepreneurs to deduct input VAT incurred on the purchase or lease of cars.

Pursuant to a new decision of the European Commission, the right to deduct input VAT on the purchase or lease of a car not used exclusively for business purposes will be limited to 50 percent of incurred VAT without any additional cap and the taxpayers will be entitled to deduct full amount of VAT on cars used entirely for business purposes. The Ministry of Finance expects that the decision will be implemented in February 2014.

Finally, it should be mentioned that there is a number of drafts in the pipeline of the Ministry of Finance, including new regulations on transfer pricing, thin capitalization, or general anti-avoidance rule.

Moreover, Poland’s new Minister of Finance Mateusz Szczurek declared that one of his main goals is to introduce major amendments to the Tax Ordinance in order to make the Polish tax system more taxpayer-friendly. ●

14

LAW IN POLAND

www.wbj.pl

DECEMBER 23, 2013 – JANUARY 12, 2014

Major ammendProblems with ments to public waste-management reform procurement law Zuzanna Wencel-Czuryszkiewicz Magnusson zuzanna.wencel@magnussonlaw.com

T

he introduction of a new system of waste management in Poland in 2013 proved more problematic for municipalities than anyone expected.

Starting as of July 1, 2013, municipalities (including urban, rural, and urbanrural units) were supposed to ensure the proper functioning of a new, more pro-recycling and eco-friendly waste management system in Poland as a result of an amendment to waste management legislation. By July 1, 2013, each municipality in Poland was supposed to conduct a tender procedure in order to select a company that would collect waste from real property owners. However, events did not turn out as planned.

In many municipalities, even in the biggest Polish agglomerations such as Warsaw and Poznaƒ, the tender procedures were either delayed or declared invalid. Consequently, the Municipality of Warsaw signed the settlement on waste collection for eight out of 18 Warsaw districts only on November 19, 2013.

Although the tender procedure for all 18 Warsaw districts has been resolved, the

chosen companies will actually start collecting waste in February 2014. Recently, six tenders in Poznaƒ were declared invalid and thus the inhabitants of Poznaƒ will have to wait at least until February or March next year for their waste to be properly collected. So far, 17 municipalities in Poland have not organized the required tenders.

The legislation regarding waste management is far from perfect, and this has been noticed by the members of parliament. On May 17 2013, a group of deputies submitted a draft act amending waste management legislation. This draft assumes going back to the waste management system in force before July 1, 2013 but allowing municipalities to voluntarily take over the responsibility for collecting waste. Adopting such an amendment would be risky due to its incompatibility with EU law. Fortunately it is rather unlikely that it will be adopted.

The deputies have also submitted a draft amendment to the aforementioned legislation that allows municipalities to place their orders for waste-collection services with municipal budgetary establishments and municipal companies. This would release many municipalities from the obligation to organize tender procedures.

Finally, on November 28, 2013, the Polish Constitutional Tribunal delivered a judgment stating that lack of indication of the maximum rate of the fee for the collection of waste in the legislation violates the constitutional principle of fair taxation. Additionally, the Tribunal stated that the legislation imprecisely authorized municipalities’ councils to regulate surcharges for the collection of waste, payable by real properties’ owners and subjective exemptions.

This way the councils have become competent not only to set the amount of the fees under the terms defined by the Act, but also to freely modify them by virtue of establishment of surcharges. The judges have decided to grant the legislator 18 months to change the legal provisions declared unconstitutional.

The judgment of the Tribunal will most certainly trigger the necessity to change resolutions passed by many municipality councils on the amount of fees for waste collection.

To conclude, the waste management system is still unstable and therefore in the near future we may expect significant changes in the legal acts regulating these services. ●

Witold Jarzyƒski Magnusson witold.jarzynski@magnussonlaw.com

In

2014, business will face several changes in the public procurement law (PPL). The major changes will consist in an increased level of supervision over subcontracting of public contracts and increasing the value of contracts subject to the PPL. The first amendment is related to the protection of subcontractors. The goal of the amendment is to ensure that subcontractors are paid in full and when due, and to secure high standards of public procurement by selecting contractors showing adequate potential (in particular with respect to their subcontracting power) as well as to limit the risk of disputes related to the performance of contracts under public procurement.

The second amendment, which is crucial from the

perspective of businesses taking part in public procurement proceedings, consists in the planned increase of the value of the contract subject to the PPL. Currently, the strict regulations of the statute apply to tenders whose value exceeds €14,000.

The lower house of Poland’s parliament, the Sejm, is working on two drafts providing for increasing the level of applicability of the PPL (up to €30,000 according to the first draft and €50,000 according to the second draft).

The first draft was prepared by the government and is more likely to be implemented. In case the new law is implemented, the number of public procurements announced in the Public Procurement Bulletin would drop by 25 percent. ●

Changes to Polish law in 2013: a calendar January 1: Higher retirement age Gradual rise of the retirement age for both genders, to 67 years of age.

January 1: Changes to Consumer Credit Implementation of Directive 2011/90/EU of 14 November 2011 to the Polish legal system making it easier for consumers to compare creditors’ offers from different member states.

January 1: New postal law All postal operators – and not only Polish Post (Poczta Polska) – are allowed to deliver letters under 50 grams. However, Polish Post keeps its monopoly privileges on delivering pensions and official letters.

January 23: New Waste Management Act The completely new Waste Management Act implementing Directive 2008/98/WE introduces provisions aiming at limiting the amount of waste produced and diminishing negative effects of waste management on the natural environment. According to the Act, a new database for products and packaging, as well as for waste management, is established.

January 29: Equal insurance premiums Insurance companies cannot individualize insurance premiums on the basis of gender.

February 27: Provisions on de minimis guarantees

State-owned Bank Gospodarstwa Krajowego is authorized to provide so-called de minimis guarantees to secure loans granted by commercial banks to medium-sized, small and micro businesses. Guarantees are provided for up to 27 months and cannot exceed z∏.3.5 mln and 60 percent of the debt amount.

August 23: Organization of employee working time In justified cases, a company can extend or reduce the work-time of its of employees. The number of working hours will have to average eight per day in a 12-month period, which has been extended from a four-month period.

April 1: Deductibility of VAT Taxpayers are obliged to issue an invoice for VATexempt sale only upon the demand of the purchaser.

September 11: New energy market regulations The new regulation aimed at boosting a competitive gas market in Poland. An obligation for gas distributors to trade 30 percent of natural gas through a commodity exchange is introduced.

Preferential solutions for micro energy producers (up to 40 KW installations). Customers are now entitled to terminate an agreement with a gas provider without incurring any costs.

June 17: Parental leave New parental leave of 26 weeks added to the existing maternity leave, which altogether gives one year of payable parental/maternity leave.

The period of maternity leave taken before birth is extended to 6 weeks. Childcare leave is extended to until the child is 5 years old (previously 4).

July 1: New waste management system Waste becomes the property of municipalities, which are responsible for organizing the complete waste-collection system. Previously each property owner was responsible for employing a waste collecting company.

July 20: Bank documents in civil proceedings Bank documents no longer have the legal force equal to official documents in civil proceedings.

BROUGHT TO YOU BY MAGNUSSON

October 7: Act on Payment Services amended Implementation of Directive No. 2009/110/EC introducing new standards concerning the issuance, redemption and distribution of electronic money, as well as the creation, organization and activity of electronic money-issuing institutions.

December 1: Internet access to land and mortgage excerpts Obtaining official excerpts from the Land and Mortgage Register via the internet is made possible. ●

R E A L

E S T A T E

• Retail pipeline to deliver 500,000 sqm • Poland not ready for green buildings

2 0 1 4

F O R E C A S T

• Warsaw office rents set to decline • Residential rebound continues

• Big hotels change hands • Logistics market growth

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

Skanska has launched the second phase of its Kapelanka 42 office scheme in Kraków. The new building will cost some €24 million. The developer started the first phase of the project in October 2012. The complex will comprise two class-A office buildings, each with 9 storeys above ground and 3 underground. The combined leasable area will be about 30,000 sqm.

The entire complex will be completed in the third quarter of 2014.

Polnord’s shares prove popular Polnord has managed to sell all of the 7 million shares it offered in its recent rights issue. With the price set at z∏.7.15 apiece, Polnord has managed to raise z∏.50 million in the offering. The company’s current shareholders exercised rights to 6,630,009 shares (1,916 individual subscriptions). Meanwhile, the developer received another 298 subscriptions for a total of 21,935,675 shares. ●

In this issue Warsaw office market . . . . . . .15 Hotel deals . . . . . . . . . . . . . . . . .16 Green solutions . . . . . . . . . . . . .16 Residential market . . . . . . . . . .17 Retail market . . . . . . . . . . . . . . .19 Logistics market . . . . . . . . . . . .19

Office

What’s in store for office?

As stock continues to increase, rents will likely yield under pressure and open a number of opportunities for tenants After a year of major completions and downward rent pressure, Poland’s capital is expected to see a further decline in office rent rates over the next two years, by nearly 2 percent, according to a recent report prepared by Cushman & Wakefield.

In 2013, more than 300,000 sqm of modern office space was delivered onto the Warsaw market, up by nearly 15 percent on the previous year. Four office buildings totaling more than 40,000 sqm each were completed, the largest being the Konstruktorska Business Center in Warsaw’s Mokotów district.

“The increase in office supply, expected to remain strong in the forthcoming quarters, pushed many property owners to bring down headline rents in 2013,” said Marcin Kocerba from Cushman & Wakefield. Over the course of 2013 headline office rents in Warsaw fell from €25-27/sqm/month to €2225/sqm/month.

What’s in store for 2014?

Warsaw’s total office stock will shoot up by 16 percent over the next two years. Some 224,000 sqm will come out of the pipeline in 2014, and 239,000 in 2015.

Office space set to come

COURTESY OF HB REAVIS

Skanska launches phase two of Kapelanka 42

DEC 23, 2013 – JAN 12, 2014, LI 18/50-52

HB Reavis's Konstruktorska Business Center delivered 48,000 sqm to the market out of the pipeline in 2014 and 2015 will amount to 224,000 sqm and 239,000 sqm respectively, which will push Warsaw’s total office stock up by as much as 16 percent.

Despite the improving state of the real estate industry in Poland’s capital, riding on the back of increasing economic growth, “there is a danger that with a large amount of speculative space due to complete in 2014 any improvements in employment will not be able to offset

rental declines before a more robust 2015,” the report said.

According to Mr Kocerba, next year will see two major trends. On the one hand, companies will look to relocate outside of Warsaw’s CBD, likely to the Mokotów or Ochota districts, where headline rents are at some €15-18/sqm/month. On the other hand, companies will look at the declining rents as an opportunity to upgrade occupied space.

However, rates for the best

class-A office space will be subject to less volatility. After a modest decrease in 2014 to €25/sqm/month from the cur-

rent €25.50, prime rents are expected to go return to €25.50 in 2015.

Beata Socha

Slight adjustment ahead Warsaw office market forecast Year

Overall

Class-A

vacancy (%)

prime rents

New supply (sqm)

(€/sqm/month) 2013

11.5

25.50

321,000

2014

12.0

25.00

224,000

2015

11.5

25.50

239,000 Source: Cushman & Wakefield

LOKALE IMMOBILIA – REAL ESTATE

DEC 23, 2013 – JAN 12, 2014

Hospitality

Hotels change hands The sales involved schemes in some of the best locations in Poland’s two largest cities The hotel market saw a number of major transactions carried out towards the end of 2013. In mid-December Quinn Insurance, a subsidiary of Grant Thornton Dublin, sold its Sofia Hilton, a 232-bedroom hotel in Kraków, to French hotel company Algonquin for €38 million. The scheme is located on the banks of the Vistula River, close to the historic Wawel Castle.

In early December another major hotel scheme changed hands. Starwood Hotels and Resorts sold its Hotel Bristol to an international consortium of private investors for an undisclosed sum. The hotel is located on ul. Krakowskie PrzedmieÊcie, in the capital’s city center, close to the Presidential Palace and the Old Town.

Hotel Bristol, which now houses 168 rooms and 38 suites, is one of the oldest hotels in Poland. It was first opened in 1901. In early 2013, the building underwent a €13 million refurbishment and was

COURTESY OF STARWOOD HOTELS

www.wbj.pl

Bristol Hotel in Warsaw included in Starwood Hotels’ Luxury Collection, which comprises the hotelier’s 80 best hotels in the world.

The two biggest Polish cities have been the uncontested leaders in the hospitality industry: Warsaw currently has 75 hotels, while Kraków operates as many as 134 facilities.

However, Poland’s capital, which is the destination of choice primarily for businesspeople, can boast the largest number of hotel rooms out of all Polish cities (11,659).

Kraków, which mostly attracts tourists, offers 8,104 rooms in its hotels.

Developers apparently think there is room for more.

Also in mid-December, developer Angel Poland Group agreed to pay the Kraków municipality some z∏.28 million for a tenement building located on ul. Stradomska 12/14 in Kraków. The property is a historical building, having served as a hospital, a customs house and a military barracks.

The developer has not yet confirmed it will be redeveloped to serve as a hotel, but the property was purchased along with a zoning decision for a hotel.

Beata Socha

Sustainability

Poland not ready to go green An increasing number of developers apply for green certificates hoping to secure higher rents and prices, but the market still seems unprepared for a green revolution Tenants and investors in Poland are still reluctant to pay higher prices for green offices.

As many as 32 percent of those polled said they wouldn’t be willing to pay extra for a green building, while 57 percent said they could pay more, but only up to 5 percent, according to a recent report prepared by Construction Marketing Group, an initiative launched by advisories Buro Happold

and Colliers together with Phillips. A marginal 2 percent would accept rent or purchase prices higher by more than 10 percent.

It is no wonder, then, that opinions were split as to the tangible benefits green buildings offer. While most respondents agreed that green buildings sell faster and at higher prices (60 percent and 68 percent respectively), only 24 percent said that sustainable buildings have lower tenant turnover and 52 percent of respondents agreed that they fetch higher rents.

Investors are still not convinced that sustainable buildings are exposed to lower investment risk. Almost a half of them said it need not be so,

while 11 percent admitted that they simply didn’t know. For 94 percent of investors, changing tenant preferences have a strong influence on investment risk. As many as 88 percent of investors pointed to delays and 82 percent to legal changes as major contributors to investment risk.

Meanwhile, companies continue to build green, expecting the investment to bring returns in the form of lower maintenance costs (61 percent of all developers surveyed). Most of them (62 percent) said that sustainable schemes are on average 2-10 percent more expensive to build, mainly because they require costly technologies and building materials.

Beata Socha

Developer’s point of view

Who’s willing to pay?

How much more does it cost to build a green building?

How much more would your company be willing to pay for a green building?

2%

Source: Construction Marketing Group

16

8% 14%

9%

15-20%

more than 10%

16%

32%

10-15%

24% 38%

5-10%

29%

2-5% up to 2%

2-5% up to 2%

5-10%

28%

0%

DEC 23, 2013 – JAN 12, 2014

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

17

Residential

Residential market holding steady With apartment prices continuing to inch up and government subsidies driving demand, developers can rest assured that 2014 will be better than 2013 After years of falling apartment prices, things are starting to look up for residential developers in the Polish market. Prices have been stabilizing almost throughout the whole of 2013, and even began to inch up in the second half of the year.

In November 2013, average

offered prices increased in almost all major Polish cities, compared to the previous month, with the strongest gain noted in Gdaƒsk (1.0 percent) and Poznaƒ (0.9 percent). The biggest drop was recorded in ¸ódê (1.5 percent) and Olsztyn (1.1 percent).

Still, 2013 was not an easy year for the residential market. Offered prices fell over the past year in all major Polish cities by an average of 2.5 percent, according to data complied by advisory Open Finance and the Domy.pl real estate portal. However, the decline in the past six months stood at only 0.7 percent.

Demand drivers Demand in 2013, and particularly towards the end of the year, was influenced by two major factors. On the one hand, the new bank recommendation issued by the Financial Supervision Authority, which precludes banks from granting 100 percent loan-to-value mortgages, prompted people to buy homes on current terms by the end of 2013.

“A lot of people, seeing that prices are already going up and there are increasingly few apartments to choose from, decide to buy now instead of waiting until next year. More

clients also buy apartments as an investment,” said Teresa Witkowska, sales director at Red Real Estate Development.

On the other hand, people who have not yet purchased an apartment or a house and are under 35 years of age will be able to apply for government subsidies within the “Mieszkanie dla M∏odych” (“Apartments for the Youth”) program, which will go into effect in January 2014. It is expected to drive demand particularly in outlying, cheaper districts of major cities.

Construction picks up Developers gain confidence New homes launched in 2012-2013 25,000 20,000 15,000

Source: GUS

10,000 5,000

Jan. ’11 Feb. ’11 Mar. ’11 Apr. ’11 May ’11 Jun. ’11 Jul. ’11 Aug. ’11 Sep. ’11 Oct. ’11 Nov. ’11 Dec. ’11 Jan. ’12 Feb. ’12 Mar. ’12 Apr. ’12 May ’12 Jun. ’12 Jul. ’12 Aug. ’12 Sep. ’12 Oct. ’12 Nov. ’12 Dec. ’12 Jan. ’13 Feb. ’13 Mar. ’13 Apr. ’13 May ’13 Jun. ’13 Jul. ’13 Aug. ’13 Sep. ’13 Oct. ’13 Nov. ’13

0

Developers are also beginning to notice the rebound on the market and have already started increasing construction activity, albeit slowly. Construction on 9,393 housing units was launched in November, 1 percent more than in the same month last year.

After subtracting houses built by individuals and housing cooperatives, 4,886 units were launched, 2.2 percent more than a year ago. October figures were even more optimistic, as construction on

13,736 new apartments was launched, 34.2 percent more than in October 2012.

While somewhat skeptical about the effects of the subsidy program, developers seem to be more interested in the Apartments for Rent Fund, which state-controlled lender BGK is preparing to

launch. The fund will acquire some 20,000 units which it will rent out at preferential rates. Polnord is looking to launch an investment in Warsaw’s Wilanów district, with tiny 19-sqm studios, hoping to sell at least some of them to BGK. Beata Socha

Long-awaited rebound Apartment prices in Poland’s major cities City

Average apartment price

change m/m

change y/y

-2.6

(z∏./sqm, November 2013) Bia∏ystok

4,338

-0.2

Bydgoszcz

3,804

0.5

-3.4

Gdaƒsk

5,671

1.0

-3.3

Gdynia

5,955

0.7

-1.7

Gorzów Wlkp.

2,915

-0.8

-1.1

Katowice

3,746

0.6

-5.5

Kielce

4,322

-0.1

-1.7

Kraków

6,908

-0.2

-1.2

Lublin

4,851

0.6

-1.3

¸ódê

3,765

-1.5

-1.6

Olsztyn

4,263

-1.1

-5.2

Opole

4,039

0.2

-4.2

Poznaƒ

5,434

0.9

-1.2

Rzeszów

4,863

0.2

-0.7

Sopot

9,355

-0.1

-0.9

Szczecin

4,156

0.1

-4.2

Warszawa

8,267

0.2

-3.3

Wroc∏aw

5,732

0.1

-3.0 Source: Domy.pl

LOKALE IMMOBILIA – REAL ESTATE

DEC 23, 2013 – JAN 12, 2014

www.wbj.pl

19

Retail

Logistics

Strong retail construction will continue in 2014

Warehouse market stabilizing

COURTESY OF PLUS COMMUNICATION

The supply of new shopping center space in 2014 will be similar to that in 2013. A total of 520,000 sqm of new space will be added to the stock, including some 120,000 sqm in six expanded malls, according to Katarzyna Michnikowska, senior conultant at Cushman & Wakefield.

“The biggest opening next year will be Atrium Felicity in Lublin (73,000 sqm of GLA) and Galeria Warmiƒska in Olsztyn (41,000 sqm),” Ms Michnikowska said.

This year saw several large shopping malls delivered to the market, with Poznaƒ City Center (61,000 sqm) and Galeria Katowicka in the Silesian Agglomeration (53,000 sqm) marking some of the biggest openings. A total of 650,000 sqm of retail space was completed throughout 2013, 20 percent more than last year.

Poland continues to be one of Europe’s leading countries in retail space construction. It

COURTESY OF SEGRO

Poland is one of Europe’s leaders in retail space under construction

SEGRO Logistics Park Stryków

The retail sector is driving demand for built-to-suit logistics space

Poznaƒ City Center was the biggest scheme delivered to the market in 2013 came in fourth, after Russia, Turkey and the UK in terms of new retail space delivered in the first half of 2013.

Smaller cities in the running As major Polish cities grow increasingly saturated in retail space, developers are turning their focus to smaller cities with populations of 200,000 or less.

“In the next few years developers’ focus on smaller cities will set the tone for the retail market,” said Patrycja

Dzikowska, associate director of research and consultancy at Jones Lang LaSalle. “New schemes are being constructed in cities like Olsztyn, Kalisz, Elblàg, Lublin and Siedlce,” Ms Dzikowska added.

Some of those smaller cities are already showing significant saturation levels, such as Rzeszów, with 800 sqm per 1,000 inhabitants, Legnica and Opole. These cities, however, act as retail hubs for several other smaller towns, sometimes even 100 km away, and

thus their retail centers may have much larger catchment areas. Still, “developers should be very careful when considering a new project there,” Ms Dzikowska remarked.

Eastern cities, like Lublin, Olsztyn, E∏k and Bia∏ystok, are also developing fairly rapidly.

Bia∏ystok already has several large-format schemes, but continues to attract retail developers, mainly because of the big number of clients coming from Russia’s Kaliningrad oblast.

BKS

With Poland’s increasing role as a Central European logistics hub, rent rates are beginning to stabilize across all the country’s regions and are expected to keep their current levels over the next few months, according to Pawe∏ Sapek, SEGRO’s Central Europe Development Director. Retailers are an increasingly important group of tenants on the logistics market and they will continue to create demand for new warehouse space.

Warehouse stock continues to grow, particularly in the built-to-suit segment, as ten-

ants are increasingly demanding about the space they occupy. “This trend is also likely to continue next year,” Mr Sapek said.

While developers are less interested in speculative construction, without having preleased at least some of the space beforehand, a drop in vacancy rates is anticipated.

“We expect to see a lot of demand in the Silesia region, which has been strengthening its position on Poland’s logistics market for a while. This region will continue to attract tenants, thanks to both its proximity to the highway connecting the city with Western Europe, and Wroc∏aw’s ring road,” Mr Sapek added.

BKS

20

MARKETS

www.wbj.pl

DECEMBER 23, 2013 – JANUARY 12, 2014

Stocks report

world stock indices DJIA

NASDAQ

S&P500

FTSE100

DAX

Lump of coal for investors

NIKKEI

16,179.08 (Dec 19 close)

4,058.13 (Dec 19 close)

1,809.60 (Dec 19 close)

6,606.58 (Dec 20 close)

9,400.18 (Dec 20 close)

15,870.42 (Dec 20 close)

2.79% (for the week)

1.49% (for the week)

1.92% (for the week)

2.59% (for the week)

4.37% (for the week)

3.03% (for the week)

CHANGE: 20.63% (year to Dec 19)

CHANGE: 30.39% (year to Dec 19)

CHANGE: 23.74% (year to Dec 19)

CHANGE: 9.56% (year to Dec 20)

CHANGE: 20.84% (year to Dec 20)

CHANGE: 48.49% (year to Dec 20)

52-week high: 16,194.72

52-week high: 4,081.78

52-week high: 1,813.55

52-week high: 6,875.60

52-week high: 9,424.83

52-week high: 15,942.60

52-week low: 12,883.89

52-week low: 2,951.04

52-week low: 1,398.11

52-week low: 5,873.40

52-week low: 7,418.84

52-week low: 9,924.42

December is traditionally a good month for stock exchanges. The so-called “Santa Claus rally” which usually brings stock prices up as the companies inject additional funds into the market for accounting and tax reasons.

But the first three weeks in December on the Warsaw Stock Exchange have been lackluster so far. It seems that this year, traders have been “naughty” and Santa won’t be coming as a result.

The last week before the Christmas break was spent waiting on the US Federal Reserve’s decision on its quantitative easing policy.

The announcement that it will start tapering the process has pushed indices on the WSE further down south.

The local factor which has affected trading in War-

Major indices WIG

51,097.75 (December 19 close)

WIG30

2,534.27 (December 19 close)

20.12

19.12

18.12

17.12

16.12

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

20.12

19.12

18.12

17.12

16.12

13.12

12.12

11.12

10.12

09.12

2,500

06.12

50,000

05.12

2,560 04.12

51,200

03.12

2,620

02.12

52,400

29.11

2,680

28.11

2,740

53,600

27.11

54,800

26.11

2,800

25.11

56,000

03.12

52-week low: 2,286.99

02.12

Change year to December 19: -3.43%

29.11

52-week low: 43,159.57

28.11

52-week high: 2,760.93

Change year to December 19: 6.21%

27.11

Change for the week: -1.21%

26.11

52-week high: 55,246.40

25.11

Change for the week: -1.28%

Top 5 LSISOFT MEGARON EFH B3SYSTEM BUDVARCEN

Closing 8.47 20.97 0.74 0.27 1.64

% change (week) 52-week high 16.99 8.50 16.37 32.61 15.62 2.00 12.50 0.73 10.81 2.18

52-week low 2.57 18.02 0.34 0.22 1.31

Top 5 ALIOR EUROCASH NETIA KGHM PGE

Closing 79.68 45.95 5.07 115.00 17.00

% change (week) 2.15 1.21 1.20 1.01 0.59

52-week high 100.50 66.56 5.72 179.15 19.51

52-week low 61.00 41.82 3.89 106.90 13.35

Bottom 5 CASHFLOW MOSTALEXP COALENERG REMAK ARCUS

Closing 0.52 0.05 1.05 8.10 2.44

% change (week) -52.73 -37.50 -33.12 -30.17 -27.81

52-week low 0.41 0.05 0.94 7.00 1.79

Bottom 5 GRUPAAZOTY GTC PKNORLEN JSW HANDLOWY

Closing 60.02 7.16 40.52 55.93 103.00

% change (week) -10.28 -9.37 -8.94 -8.12 -7.58

52-week high 88.50 10.25 55.56 94.15 130.00

52-week low 48.84 6.58 40.02 53.01 80.89

52-week high 2.90 0.39 14.17 34.35 5.33

WIG20

2,408.84 (December 19 close)

mWIG40

‘Suprising’ Fed decision?

3,293.36 (December 19 close)

52-week high: 2,628.36

Change for the week: -2.17%

52-week high: 3,572.51

Change year to December 19: -8.28%

52-week low: 2,177.02

Change year to December 19: 28.22%

52-week low: 2,471.39

3,520

2,620

3,440

2,540

3,360

2,460

sWIG80

14,018.48 (December 19 close)

NewConnect

20.12

19.12

18.12

17.12

16.12

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

20.12

19.12

18.12

17.12

16.12

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

25.11

3,200

25.11

3,280

2,380 2,300

Adam Narczewski X-Trade Brokers DM SA

3,600

2,700

347.11 (December 19 close)

SOURCE: WSE

20.12

19.12

18.12

17.12

16.12

13.12

12.12

11.12

10.12

09.12

06.12

05.12

04.12

20.12

19.12

18.12

17.12

16.12

13.12

12.12

11.12

10.12

340

09.12

13,500

06.12

343

05.12

13,900

04.12

346

03.12

14,300

02.12

349

29.11

14,700

28.11

352

27.11

15,100

26.11

355

25.11

15,500

03.12

52-week low: 296.29

02.12

Change year to December 19: 4.49%

29.11

52-week low: 10,242.71

28.11

52-week high: 355.71

Change year to December 19: 33.11%

27.11

Change for the week: -1.48%

26.11

52-week high: 15,093.78

25.11

Change for the week: -2.04%

Jacek Ciesnowski

Currency report

Other indices Change for the week: -0.86%

saw is the government’s decision to force open pension funds (OFE) to transfer over half of their assets to the state-run Social Insurance Institution (ZUS). It looks like OFEs are selling most of their assets to prepare for such a move.

To make matters even worse, December 20 was a triple witching day, as contracts for stock index futures, stock index options and stock options all expired.

The low volume of trade might mean that investors looking for quick profits are long gone, which on the one hand makes the bourse a more healthy market with less speculators, but on the other hand it might mean that we will have to wait a little longer for the WSE to hit another winning streak.

Ben Bernanke wanted to leave his position as Fed chairman with fireworks. He succeeded. The Fed decided to cut the QE3 program by $10 bln to $75 bln, hinting the reduction will continue in 2014. Despite having all the arguments to make such a move, the Fed’s decision seemed surprising to market participants.

The EUR/USD reacted by abruptly tumbling to levels well below $1.37, and it seems that further declines are possible. The reduction of the QE3 program means less money in the economy, which in turn should have been bad news to equities and emerging market currencies. It was not. It seems that the market perceives the situation in such a manner that the US economy is improving and it considers that good news. Indices shot

up to record highs while emerging market currencies appreciated.

In Poland, investors ignored local macroeconomic data, even though some of it was important. CPI inflation decreased in November to 0.6 percent (yearly basis) while industrial production increased by 2.9 percent (much lower than in October but better than forecasts).

Still, Mr Bernanke was the DJ who played the music to which the traders danced.

The z∏oty continued its December appreciation against the euro, reaching z∏.4.16. After reaching weekly lows of z∏.3.02, the USD/PLN rebounded, on the other hand, to reach z∏.3.05. It appears the US dollar will be the winner in the upcoming weeks so the USD/PLN target is currently above z∏.3.10.●

currency rates 3.8979

3.7088 22.01.09

23.01.09

3.7242 21.01.09

SOURCE: NBP

3.6786 20.01.09

3.4658 3.0

16.01.09

23.01.09

22.01.09

21.01.09

20.01.09

19.01.09

16.01.09

0.08

19.01.09

0.1037 3.5

3.5889

100JPY/PLN

4.0

0.1009

0.1021

0.1000

0.0963

2.9466 23.01.09

2.8582

0.10

0.0986

RUB/PLN

0.12

22.01.09

2.9376 21.01.09

2.9162 20.01.09

2.8976 19.01.09

23.01.09

22.01.09

21.01.09

20.01.09

19.01.09

16.01.09

2.7995

4.6624

4.5862

4.6293

4.6661

4.6820

CHF/PLN

3.0

2.5

16.01.09

3.3024

3.4380 23.01.09

4

4.7670

GBP/PLN

5

22.01.09

3.3468 21.01.09

3.3381 20.01.09

19.01.09

3.1353 16.01.09

4.3094

4.3957 23.01.09

3.0

3.2473

USD/PLN

3.5

22.01.09

4.3305 21.01.09

4.1522

4.3280 20.01.09

19.01.09

16.01.09

4

4.3113

EUR/PLN

5

OPINION & ANALYSIS

DECEMBER 23, 2013 – JANUARY 12, 2014

www.wbj.pl

21

Innovation and inequality Stefano Scarpetta

W

hen the benefits of economic growth are distributed very unequally, social bonds fray.

Those losing ground, especially the young, may well grow disaffected, then resentful. This was a key factor behind the Arab Spring revolts; and, as protests in Chile, Brazil, Israel, Turkey, and India have shown, social

tensions stemming from inequality are mounting around the globe.

To be sure, income inequality has been increasing worldwide for decades. Even while many developing and emerging economies lifted millions of people out of extreme poverty, the perception that growth meant greater inequality was always bubbling below the surface. But now increasingly persistent unemployment and under-employment are giving new impetus to the rise in inequality, as the OECD reported to the G-20 in July.

Indeed, in the wake of the 2008 financial crisis, youth unemployment now averages 16 percent in advanced countries, and exceeds 40 percent in some European countries.

As a result, the challenge of inclusive growth has moved to the top of the global economic-policy agenda.

Indeed, according to the World Economic Forum’s Global Agenda Outlook, widening income disparities will be the second-most important world trend in 2014, behind only Middle East tensions.

Better health – better jobs Income gaps are growing for many reasons, ranging from “skill-biased” technological progress to corruption.

But, whatever its causes, putting people back to work at productive, rewarding jobs can help a great deal, and this demands the best efforts of governments, employers, and civilsociety groups on many fronts.

For starters, it means providing populations with access to quality schooling and health care: a healthy, educated person is an employable person. In many countries, this remains a major challenge. But the large strides already made in some low-income countries reveal great potential.

SHUTTERSTOCK

“For practical and political reasons, redistributive programs, while essential, are not enough to ensure inclusive growth by themselves.”

Consider Brazil, which enjoyed a long boom in the 2000s, during which income inequality actually declined.

One contributing factor was the bolsa familia (family grant), now a decade old. This monthly cash payment goes directly to mothers, provided that they keep their children in school and send them for regular medical checkups.

This innovative program is not only a human-capital investment in millions of children; it also allows mothers to work. Such well-designed subsidies for socially useful behavior can lift millions out of poverty.

Innovation driving inclusive growth But education and health are just the first step. For practical and political reasons, redistributive programs, while essential, are not enough to ensure inclusive growth by themselves.

It is often said, for good reason, that the widening income gap largely reflects technological change, which has drained many economies of blueand even white-collar jobs, while channeling the fruits of improved productivity to high-skilled elites. But the digital revolution can also enable inclusive growth. Internet applications and other communications

advances are spreading knowledge and information to millions of poor people.

Consider Babajob.com, started by a Microsoft researcher in India to bring better job opportunities to the country’s informal sector by connecting employers and job seekers via the web, mobile apps, SMS, and voice services. Likewise, in Kenya, as cellphones became widespread, network operators introduced M-pesa, by which anyone with a mobile phone can transfer money quickly and cheaply – a boon for the smallest enterprises in particular.

Both of these examples – and there are many others – originated not from government but from the private sector. And that points to another piece of the solution: improved labor-market efficiency. In many countries with high jobless rates, employers cannot find people with the right qualifications. The solution is twofold: better market information and better connections between the world of education and the world of work.

Specialized online job-search sites are facilitating employment. But a successful school-to-work transition should start when tomorrow’s workers are young. Early childhood edu-

cation is critical but must lead to high-quality schools that provide ample career-related guidance and counseling. The evidence is clear; countries that invest in these areas have better results than countries that move more slowly.

Digital vs manual While most countries aspire to move toward a “knowledge society,” this should not mean downplaying technical and vocational education. On the contrary, advanced economies need many skills, and high-quality technical education, especially if followed by effective apprenticeship programs, can create smooth transitions from school to work. Germany, Austria, Switzerland, and other developed countries are rightly praised for this. Germany’s youth unemployment rate is under 8 percent, and a steady supply of skilled labor helps to sustain the country’s success as an exporter.

To be sure, this model cannot be adopted in every country – for one thing, it requires a high degree of trust between labor and management. But some practices can be modified for use elsewhere. The G20 countries have recently adopted comprehensive guidelines for quality

apprenticeships; each member country should adopt the most appropriate strategy within this broad framework.

Virtual training programs, for example, allow students to practice using expensive machinery without interfering with actual production – and with no risk of damaging the equipment. Similarly, massive open online courses (MOOCs), which are another fast-growing approach to training, enable delivery of top-notch teaching to a broad public at a low unit cost.

There are many innovative approaches to sharing growth more equally, and more are emerging all the time. But they all point to a fundamental truth: If young people and the disadvantaged are to find satisfying and rewarding jobs, governments, employers, educational institutions, and civil-society groups all have an important role to play. Our economies’ long-term sustainability depends on it. ● Stefano Scarpetta is director for employment, labor, and social affairs at the Organization for Economic Cooperation and Development.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

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

PUBLISHER VALKEA MEDIA SA MANAGING EDITORS

REPORTER

JACEK CIESNOWSKI (JCIESNOWSKI@WBJ.PL) BEATA SOCHA (BSOCHA@WBJ.PL)

KAMILA WAJSZCZUK (KWAJSZCZUK@WBJ.PL) COPY EDITOR

JOHN BEAUCHAMP (JBEAUCHAMP@WBJ.PL)

PRODUCTION MANAGER

POLITICS EDITOR

CONTRIBUTORS

GRAPHIC DESIGNER

REMI ADEKOYA (RADEKOYA@WBJ.PL)

EWA BONIECKA ALEKSANDRA S¸ABISZ

COLUMNISTS

OMAR ARNAOUT ADAM NARCZEWSKI PIOTR WYSKOK

¸UKASZ MAZUREK

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

MONIKA STAWICKA (MSTAWICKA@WBJ.PL)

EWA BROGOSZ-KORYCKA (EBROGOSZ-KORYCKA@WBJ.PL)

PRINT & DISTRIBUTION COORDINATOR

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

PR & MARKETING SPECIALIST

AGNIESZKA BREJWO (ABREJWO@WBJ.PL)

MA¸GORZATA SEMENIUK (MSEMENIUK@WBJ.PL)

BOOK OF LISTS COORDINATOR

MONIKA BRYSIAK (MBRYSIAK@VALKEA.COM)

SUBSCRIPTIONS MANAGER

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

Prenumerata realizowana przez RUCH S.A: Zamówienia na prenumerat´ w wersji papierowej i na e-wydania mo˝na sk∏adaç bezpoÊrednio na stronie www.prenumerata.ruch.com.pl Ewentualne pytania prosimy kierowaç na adres e-mail: prenumerata@ruch.com.pl lub kontaktujàc si´ z Telefonicznym Biurem Obs∏ugi Klienta pod numerem: 801 800 803 lub 22 717 59 59 – czynne w godzinach 700 – 1800. Koszt po∏àczenia wg taryfy operatora.

22

SPORTS

www.wbj.pl

DECEMBER 23, 2013 – JANUARY 12, 2014

Motor sports

Soccer

Kubica signs WRC deal

Ex-Premiership star to coach Legia

Robert Kubica during this year’s WRC2 Acropolis Rally

The former Formula One driver will race next season in a Ford Fiesta After easily winning this year’s WRC2 series (an accompanying circuit to the more prestigious World Rally Championship series), Robert Kubica will spend next season in the WRC driving a Ford Fiesta car prepared by the M-Sport team.

Mr Kubica won’t officially be a part of the team, which already has two drivers on its roster signed up for next season. Instead, he will drive under the Lotos World Rally

Team banner with full servicing provided by M-Sport.

Mr Kubica had his WRC debut this year, when he competed in the last rally of the season in Great Britain. He crashed out and didn’t finish.

“He has a desire and a hunger which you don’t see in many drivers and I truly believe that M-Sport can offer him all the right tools to move forward in rallying,” said Malcolm Wilson, who runs the MSport team.

Mr Kubica is cautious about his chances, saying once again that he has a lot to learn.

“I’ll spend the whole season studying the sport. Maybe at

Gazeta Finansowa

the end I’ll be more competitive,” he said in an interview with Italian daily La Repubblica, adding that circuits with sharper turns are more difficult for him and he’s having trouble staying on them.

Due to injuries he suffered back in 2011 Mr Kubica still has not regained full mobility in his arms. Because of this, he has a specially adapted gear change system, utilizing levers instead of the conventional sequential shifter lever. To ensure that this system does not provide an unfair advantage, it’s built so it reacts with a slight but relevant delay.

Jacek Ciesnowski

Though Legia Warszawa sits comfortably atop the table in Poland’s T-Mobile Ekstraklasa league, the team’s management has decided it needs to develop under different leadership.

Current coach Jan Urban won the championship last season and was well on his way toward repeating that success this year. But what he did in the Polish league he was unable to repeat in European competitions. Legia put up miserable performances in the Champions League and Europa League, prompting the management’s decision to replace him. The official reason for Mr Urban’s release is “a different opinion on the club’s future” than the management’s.

His successor is a surprise, as Legia went abroad and hired a Norwegian, Henning Berg. Mr Berg, a former defender at Blackburn Rovers and Manchester United, was a legend on the field, becoming

COURTESY OF LEGIA.COM/M. KOSTRZEWA

SHUTTERSTOCK

A former Blackburn and Manchester United defender will lead the Polish champions starting in January

Henning Berg the first Norwegian in history to win a Premiership title (in 1995 with Blackburn, also winning the league twice with Manchester United as well as the Champions League), but his coaching career has so far been lackluster.

He spent the first six years on the bench in his native Norway, managing Lyn Oslo and Lillestrom respectively.

Despite never winning any trophy there, he got his chance in England, where in 2012 he coached his former club Blackburn Rovers. His stint was short-lived, as he ran the team for just 10 games, winning only one. He was released from the club in December last year and

has been unemployed since.

The question remains as to whether he will be able to improve Legia in a way that will help them achieve some success in inter-European play.

The club’s owners seem to be betting that winning the Polish league will come easy, but that is unlikely. The Warsaw side is only five points ahead of second-place Górnik Zabrze, and it bears noting that after the initial 30 games, points for wins will be slashed in half for the final seven games of the season. A bad run during that stretch could erase even the most impressive of leads.

Jacek Ciesnowski

DECEMBER 23, 2013 – JANUARY 12, 2014

LIFESTYLE

www.wbj.pl

New Year’s Eve

Exhibition

Ringing in the New Year

Modern art overhaul

New Year’s Eve parties December 31 Various cities

“In the heart of the country” Ongoing until January 6 Museum of Modern Art in Warsaw ul. Emilii Plater 51 “In the heart of the country” is a comprehensive exhibition comprising scores of works from the Museum of Modern Art in Warsaw’s vast collection. The exhibition’s title derives from John M. Coetzee’s hallucinatory novel, in which “‘the heart of the country’ is a hole, a void, an insatiable phantasm of physical fulfillment and maturation (of the identity, body and community spirit),” according to the exhibition’s website.

It also relates to the museum’s planned location at Plac

ing local acts last year, the city of Kraków is going back to its tradition of inviting big stars to the Main Market Square for a night of partying, this year with veterans Perfect and Lady Pank, but also younger stars, with Brodka, Czes∏aw Mozil and Tatiana Okupnik to name just a few of the 30 artists billed. The party will be broadcast on TVN, although Kraków won’t be displaying any fireworks this year.

One less thing to worry about falling on your head, and a nice gesture towards the city’s many dog owners who won’t have to worry about their pets thinking they’re in a war zone.

Wroc∏aw has just signed a four-year deal with public broadcaster TVP2, which will be televising the festivities on

the Market Square. The lineup concentrates on 1970s and ’80s disco, so anyone wanting to get their groove on should get down to the Lower Silesian capital to hear from Edyta Górniak, Kombii and Shakin’ Dudi.

Meanwhile, up north we go to Gdynia, which has forked out z∏.700,000 for its concert with Polsat. “The New Year’s Eve stage will be the biggest in Poland,” Gdynia City Hall has said in a press release. But apart from the largest parties, practically every city will have something going on, so if you’re up for it, get out there and party.

And remember: “Happy New Year” in Polish is Szcz´Êliwego Nowego Roku. Maybe time to get practicing?

John Beauchamp

made out of Lego blocks; Jimmie Durham’s “Homage to Luis Bunuel,” which is a house with no walls or ceiling, full of oddities, handicrafts, and everyday objects; and Teresa Margolles “127 bodies” which is a piece of string over 33 meters in length, made up of 127 surgical suture threads that were used to sew up the bodies of unidentified victims of street violence in Mexico City after their autopsies had been performed.

Exhibits range from paintings and sculptures to videos and sound installations.

Jacek Ciesnowski

For more information visit: artmuseum.pl

COURTESY OF THE MUSEUM OF MODERN ART IN WARSAW/BARTOSZ STAWIARSKI

SHUTTERSTOCK

Toward the end of the year, a number of major cities across Poland begin advertising their New Year’s Eve celebrations.

Who’s got the best bands, which TV station’s got the coverage?

What do you have to do to keep warm on what usually turns out to be a freezing-cold evening?

And of course the perennial question – should you wear a helmet to protect your head from airborne champagne corks and empty vodka bottles? WBJ can’t answer those questions for you, but we can give you a quick run-down of the big parties that will be happening in Poland on New Year’s Eve. In Warsaw, the city authorities have given up on their longstanding cooperation with TV station Polsat and the location at Plac Konstytucji and have moved the party to the National Stadium, where revelers can get down with class acts Afromental, Big Cyc, as well as aging rockers T.Love. John Newman is also billed. If you don’t make it, however, you can always see the fireworks show, “which will be visible throughout the whole city,” a spokesperson for Warsaw City Hall said recently.

Down south, after showcas-

Defilad, in the very center of Warsaw. It’s the biggest exhibition in the gallery’s short history.

The exhibition attempts to shed new light on the Polish political and economic transition, as well as its moral, ethical and social repercussions, and describe the artistic phenomena which accompanied change in Central and Eastern Europe during the second half of the 20th century.

Artists whose works are on display hail from Poland, Mexico, Libya, Israel, the US and many more. The most famous works include Zbigniew Libera’s “Lego. Concentration camp,” which, as the title suggests, is a concentration camp

23

Pawe∏ Althamer’s “Barge-haulers”

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

Morning buzz complex. Conversations in the fresh air and a bit of relaxation make a good start to the day. www.businessgarden.pl or call us: +48 22 370 14 44

Ecological business park

Excellent transportation

LEED

Wide range of services

Trustworthy developer