WBJ #2 2012

Which Polish companies are likely to pay out the highest dividends in 2012?

Does Poland deserve the EU’s praise on its debtreduction measures?

A corruption scandal erupts over the granting of shale-gas concessions

5, 7

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WWW.WBJ.PL

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VOLUME 18, NUMBER 2 • JANUARY 16-22, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Coal country

COURTESY OF ESTUDIO LAMELA

Lokale Immobilia

While the rest of Europe moves towards reducing CO2 emissions, in Poland investments in coalpowered energy are ramping up

• Warsaw Airport reconstruction • Azora buys offices • Hitler’s headquarters 15-18

5, 12-13

COURTESY OF THE STATE TREASURY

Interview: Jan Bury

Since 1994 . Poland’s only business weekly in English

The leader of the government’s minority coalition partner talks to WBJ about the importance of compromise 8-9

Terminal illness The controversy over health care reforms escalates 4

In this issue

SHUTTERTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Tax . . . . . . . . . . . . . . . . . . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Suicide mission

Still on the outside

Poland’s legal establishment was rocked by the attempted suicide of military prosecutor Miko∏aj Przyby∏ 3

Support of a fiscal union hasn’t earned Poland the right to take part in the most important EU meetings 4

NEWS

www.wbj.pl

Former minister sentenced over martial law

Polish Formula 1 champion Robert Kubica suffered a new injury last week when he broke his ankle in a fall. Mr Kubica is still recovering from severe injuries sustained in a near-fatal crash in a rally last year. The driver, who is currently without a contract, missed the entire 2011 season and had already confirmed he would not be ready for the start of the 2012 season. This latest injury could jeopardize the chances of him ever returning to F1 competition.

Taliban fighter captured

z∏.2.4 billion was the estimated market value of computer sales in Poland in 2011. Last year 3.4 million computers were purchased.

9.33 million was the number of passengers handled by Warsaw Chopin Airport in 2011. That’s 7.2% more than in 2010.

48th is Warsaw’s position in a ranking of the world’s most frequently visited cities. Hong Kong, Singapore and London made up the top three.

While the European Commission last week praised measures implemented by Poland to cut its deficit, it was rather less happy with fellow CEE nation Hungary. In fact, the EC singled out Hungary for not having made sufficient progress towards correcting its deficit and recommended implementing the next stage of the Excessive Deficit Procedure. As a result, the country could see cuts in EU subsidies worth 1.7 percent of GDP starting next year.

The Commission argues that although Hungary formally adhered to requirements to keep its 2011 deficit below 3 percent of GDP, it managed to do so only thanks to unsustainable one-off measures worth some 10 percent of GDP. The EC said these measures only serve to mask a “severe deterioration in the underlying structural balance.”

Those were not the only reproaches that came from Brussels last week. Relations between the EU and Budapest are becoming increasingly tense after the government of Prime Minister Viktor Orbán passed controversial changes to Hungary’s constitution. According to the EC, the changes, which came in to force on January 1, undermine the independence of the Constitutional Court, the central bank and the judiciary.

As WBJ went to press, the EC said it would rule by January 17 on whether the constitutional changes were compatible with EU law, and could initiate legal action against Hungary if it found they were not.

These concerns, in turn, are viewed as one of the main obstacles for an IMF-EU bailout that Budapest is cur-

rently negotiating. Hungary’s finances are in such bad shape that the scenario of a sovereign default “can no longer be ruled out, especially if the Hungarian government does not make serious concessions to ensure investor confidence soon and open the door for IMF-EU negotiations,” Danske Bank analysts wrote at the beginning of January.

The situation has scared off investors, causing Hungary’s currency, the forint, to tank in the first week of January. As the most-traded currency in the region, the z∏oty was also affected. Both currencies regained some ground at the end of last week, but the situation in Hungary – the EU’s most indebted eastern member – is far from settled, and contagion to other countries in Eastern Europe remains a possibility.

Alice Trudelle

Quote of the Week

“You can’t win them all.”

Prime Minister Donald Tusk responds to questions about Poland being excluded from euro-zone summits in the latest draft of the EU’s fiscal union treaty.

Figures in focus Tax burdens Total tax revenue by member states in 2010 as a percentage of GDP, selected EU27 countries (percentage)

50 44 38 32 26 20

On WBJ.pl Source: Central Statistical Office

Company index

Polish sport in 2012 As Poland gears up for the 2012 European soccer championships WBJ.pl takes a look at some of the names that are currently making the news in the world of sport. Find out which Polish athletes we can expect to see more of this year, by log onto WBJ.pl.

DATELINE

January / February JANUARY 24-27 BUMASZ Event:

Alcohol prices are set to rise in Poland’s restaurants and pubs this June because of the country’s co-hosting of the Euro 2012 soccer championships, reported Dziennik Gazeta Prawna.

Restaurant and hotel owners are planning to increase prices to take advantage of soccer fans’ party mood and their expected willingness to spend money during this summer’s event. ●

25th is Poland’s predicted position on a list of the world’s largest economies in 2050, according to a report released by HSBC. Poland is currently ranked 24th.

US and Afghan special forces have captured a Taliban fighter suspected of directing a roadside bomb attack that killed five Polish soldiers in Afghanistan on December 21, 2011, reported Gazeta Wyborcza. The Polish soldiers, who came from the 20th Mechanized Brigade, were killed while driving on a road through the Ghazni province.

Alcohol prices to increase

Numbers in the News

UK Po lan d Ire lan Lit d hu an i Bu a lga ria

New setback for Kubica

Hungary

SHUTTERSTOCK

Czes∏aw Kiszczak, Poland’s interior minister between 1981 and 1990, was handed a two-year suspended jail term for his role in imposing martial law in Poland on December 13, 1981. The communist leaders responsible were part of a criminal enterprise, a Polish court ruled last week. General Wojciech Jaruzelski, Poland’s leader at the time and one of nine original defendants, was excluded from the case due to poor health, along with three others.

IN THE SPOTLIGHT

JANUARY 16-22, 2012

De nm ar Be k lgi um Sw ed en Fra nc e EU I 27 taly av era g Ge e rm an y

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This trade fair is a unique opportunity for manufacturers and suppliers of machinery and construction equipment to establish new and maintain existing contacts with decision makers in the industry.

Location: Poznaƒ International Fair, bumasz.pl/en/

FEBRUARY 3-5 MTT WROCLAW 2012 Event:

This event bills itself as the largest trade exhibition in Poland devoted to the travel and tourism industry. It will feature a wide range of products and services relating to the industry as well as major industry players including tourist boards, resorts, travel clubs,

APA Kury∏owicz & Associates ..15 Grupa ......................................5 18 PGNiG ..........................................8 ArcelorMittal ..............................12 HSBC ............................................2 PKO BP ........................................6 Asseco ..........................................6 Idevices ......................................23 PMR ..............................................6 Aurec Capital..............................18 IMS Health ..................................6 Poczta Polska Telefon i Telegraf ....6 Avon ............................................15 InterHealth Canada ..................16 Polish Airports State Enterprise ..15 Azora Europa..............................18 Ipopema Securities......................6 Project Syndicate ......................11 Azora International Group ........18 Jastrz´bska Spó∏ka W´glowa......5 PZU ........................................6, 16 B&B Hotels ................................18 Jones Lang LaSalle ..................18 Bank Zachodni WBK....................7 JSW ............................................13 Buma Group ..............................18 Kaye Scholer LLP ......................10 Central Europe Energy Partners 13 KGHM ..........................................6

airlines, travel agencies, and many more.

Location: Hala Stulecia, Wroc∏aw, mttwroclaw.pl/en

CEZ ............................................12 Kulczyk Investments..................13

Rank Progress ..........................15 Ravenna Warszawa....................15 Ronson Development ................18 Solarfocus ..................................23 Soundmatters ............................23 Superhobby Market Budowlany 15

Citi Handlowy ..............................6 Lotos ..........................................13 Sygnity ..........................................6 Comarch ......................................6 Millennium Dom Maklerski ........6

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BRITISH-POLISH PPP FORUM

Entitled “Wroc∏aw for partnership – experience, plans and prospects for cooperation” this event will feature several discussion panels on public-private partnership in Poland and around the world. Hosted by economist Robert Gwiazdowski Location: Hala Stulecia, Wroclaw, ppp.gov.pl Event:

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SHOPPING CENTER BUSINESS FORUM

Now in its 14th edition, this event is an opportunity to meet tenants and developers of commercial real estate. The organizer provides access to web-based business appointments between participants.

Location: Hilton Warsaw Hotel, scbf2012.retailnet.pl Event:

Tauron ........................................13 Dalkia ........................................12 Miller, Canfield, W. Babicki, A. Telekomunikacja Polska..............6 Danish Polish

Chelchowski & Partners ..........13

Telecommunication Group ..........6 Mitsubishi ..................................15 Deutsche Securities ....................6 Moeller Electric..........................15 Dunaferr ....................................12 Moody’s ........................................6 Echo Investment ........................15 Moravia Steel ............................12 EDF ............................................13 Motorola Solutions Polska ........18

U.S. Steel....................................12 UCEES ........................................18 Unibep ..................................15, 18 Vattenfall Heat Poland ................8 Verbund ......................................12 Voestalpine ................................12

EGIS ............................................15 New World Resources ..............12 Vuzix ..........................................23 Elektrownia Pó∏noc....................13 Novo Nordisk ............................15 Wardynski & Partners ..............10 Emperia........................................3 OBI ..............................................15 Warsaw Stock Exchange ............6 Enea............................................13 Okam Capital ............................18 Wood & Company ........................6 Energa ........................................13 Pandora A/S ..............................15 W´glokoks ..................................13 Estudio Lamela ..........................15 Pekao............................................6 X-Trade Brokers Everest Group ..............................6 Peter Nielsen & Partners ........10 Dom Maklerski ..........................19 Globe Trade Centre....................15 Petrolinvest ..................................3 YES Airways................................15 GMF Warsaw Office ..................11 PGE ........................................6, 12

NEWS

JANUARY 16-22, 2012

www.wbj.pl

Prosecutors controversy

Suicide attempt reveals conflict among Polish prosecutors Poland’s system of military and civilian prosecutions was thrust into the spotlight after a colonel shot himself last week

MAREK ZAKRZEWSKI/PAP

Poland’s legal establishment was rocked last week when Colonel Miko∏aj Przyby∏, a military prosecutor, shot himself in the head during a break at a press conference in Poznaƒ while journalists and television cameras were just meters away. Colonel Przyby∏ survived the suicide attempt, but its reverberations have unveiled serious conflicts at the heart of Poland’s system of prosecution and compelled the president and the prime minister to speak out regarding the controversy.

The incident occurred following an impassioned statement to the press by Colonel Przyby∏. In the statement, he defended the actions of the Military Prosecutor’s Office in Poznaƒ during an investigation into information leaks concerning the 2010 Smolensk air crash disaster. Military prosecutors have been accused of illegally attempting to access phone records of journalists covering the probe of the crash, in which Polish President Lech Kaczyƒski and 95 others perished.

Colonel Przyby∏ insisted that military prosecutors had broken no laws and that the media was being manipulated in a campaign to discredit the Military Prosecutor’s Office

President against dismissal

Colonel Przyby∏ says there is a z∏.1 million bounty on his head so that it could be subsumed into its civilian counterpart.

This, he said, would lead to his investigations into largescale corruption in the military “getting lost in the sea of cases” in the civilian prosecutor’s office.

He ended his statement saying he would “defend the honor of the Polish soldier,” and asked the journalists to leave the conference room so that he could take a short break. Moments later, a shot was heard coming from the conference room and journalists rushed in to find him lying in a pool of blood.

‘My hand shook’ After being rushed to the hospital, it was discovered that Colonel Przyby∏ had shot him-

Once Colonel Przyby∏ was considered to be in stable condition, he was moved to the psychiatric ward of the hospital for further evaluation.

self through the cheek. The next day, he spoke to Radio Zet, saying, “I put the pistol barrel in my mouth but my hand shook because I saw the door handle move. A man who wanted to shift the cables saved me … the bullet hit my cheek and didn’t go through my head.”

In several interviews and statements to the media over the next few days, Mr Przyby∏ said he had been partially motivated by intimidation tactics taken against him during his corruption investigations, including the slashing of his tires and the killing of his dog. He said that due to his investigations into corruption in the military, there was a “million-z∏oty bounty” on his head.

Prosecutors disagree Mr Przyby∏’s immediate superior, General Krzysztof Parulski, told the media that he agreed with the statements the colonel had made at the press conference, adding that the civilian prosecutor’s office had acted “unethically” during its investigation into military prosecutors’ attempts to obtain journalists’ phone records.

However Poland’s top prosecutor, Prosecutor General Andrzej Seremet, said he disagreed with Mr Przyby∏’s account.

Both Mr Seremet and General Parulski were summoned by President Bronis∏aw Komorowski to discuss the “structural conflict” between the military and civil prosecutor’s offices.

The president said afterwards that he didn’t think “personnel changes” would solve the matter, a sign that he disagreed with those who were calling for the general to be dismissed for having publicly criticized the Prosecutor General.

Prime Minister Donald Tusk, however, seems to hold a different view. At a press conference on Wednesday, he said he was “absolutely certain” that loyalty to one’s superior, especially in an institution like the prosecutor’s office, had to be “indisputable.”

He added that if the two prosecutors couldn’t work together, a solution would have to be found. Many took the statements as an indication that he felt General Parulski should be the one to go.

Nevertheless, the decision is not the prime minister’s to make. The Prosecutor General can only dismiss General Parulski with the approval of the defense minister and the president, who serves as commander-in-chief of the Polish armed forces.

Considering President Komorowski’s initial statements on the issue, it seems General Parulski isn’t going anywhere, and the conflict between the two men, and the two institutions, looks set to continue.

Remi Adekoya

Shale gas

Shale gas search hit by corruption scandal

A total of seven people, among them Polish government officials, have been charged with corruption related to the granting of licenses for the exploration of shale gas on Polish territory.

Announcing the charges, Waldemar Tyl of the Warsaw Appeals Prosecutor’s Office said tens of thousands of z∏oty in bribe money had been exchanged in the second half of 2011 alone.

Poland’s Internal Security Agency (ABW) arrested the suspects last Tuesday as part

of an investigation into corruption that was launched last summer.

“The seven people include three Environment Ministry officials, one from the Polish Geological Institute and three businessmen representing companies holding licenses for shale gas exploration,” the ABW said in a statement, without saying which firms were involved.

One of the suspects headed the ministry department charged with granting shale gas licenses, Polish media reported.

Polish daily Gazeta Wyborcza, citing its own inquiries, wrote that among the seven are employees from Silurian, a company which operates under the umbrella of Polish

oil and gas exploration company Petrolinvest, whose principle owner is the well-known businessman Ryszard Krauze.

Mr Tyl said the suspects are facing allegations which relate to an article of Poland’s penal code dealing with public officials who engage in activities aimed at bringing themselves personal financial gain.

Depending on the severity of the crime, such actions are punishable by between six months and eight years in prison.

A study from the US Energy Information Administration released in April last year suggests there could be recoverable gas reserves of 5.3 trillion cubic meters beneath the surface of Poland – the largest of any country in Europe. The

President discusses US visa waiver Polish President Bronislaw Komorowski met last week in Warsaw with US House of Representatives members Mark Kirk and Mike Quigleyt, the coauthors of legislation designed to include Poland in the US visa waiver program. US President Barack Obama announced his support for the legislation during his visit to Poland in May 2011.

FDI to grow 5-8% in 2012 The amount of foreign direct investment to Poland should grow by 58% this year compared to 2011, “assuming that the global economy sees no dramatic change.”

S∏awomir Majman, president of the Polish Information and Foreign Investment Agency, told the Polish Press Agency.

Total FDI for 2011 may exceed €11 billion, according to the Ministry of Economy.

The end of Emperia?

FMCG retailer Emperia, which until recently was one of the biggest trading groups in Poland, will conclude negotiations on the sale of its retail business by the end of March, reported Parkiet, citing unnamed sources.

“If the board is able to finalize the sale of its retail holdings and real estate in 2012, the company could distribute its capital to shareholders – through dividends and shares – and cease to exist in 2013,” said Kamil Szlaga, an analyst at KBC Securities.

Poland up in freedom index

COURTESY OF 3 LEGS RESOURCES

Seven people have been charged with bribery in connection with the granting of exploratory licenses

3

Shale gas drilling has become big business in Poland Polish government has so far issued over 100 licenses for the exploration of unconventional gas deposits and hopes

production of shale gas for commercial use can begin in 2014.

Gareth Price

Poland was ranked 64th in the 2012 Index of Economic Freedom published by The Heritage Foundation and The Wall Street Journal.

Poland’s score was 64.2.

That’s only 0.1 point better than last year, but it still allowed the country to move up by four places. As the authors put it, this result reflects an improvement in freedom from corruption that is offset by a lower score for government spending. ●

4

NEWS

www.wbj.pl

JANUARY 16-22, 2012

Fiscal union treaty

Poland to be excluded from euro-zone meetings despite fiscal union support? win them all.” He added that the draft was not final, and downplayed the potential negative consequences for Poland if it is indeed excluded from euro-zone summits.

“We are not talking about a defeat. The final decision has

Despite its policy of striving to swim in what the government calls the “European mainstream,” recently leaked drafts of Europe’s proposed fiscal union treaty suggest that Poland could be excluded from taking part in euro-zone summits even after signing the agreement, reported the Polish Press Agency, which gained access to the documents.

Prime Minister Donald Tusk and his government have made clear that Poland’s goal is to be able to participate in eurozone summits. The rationale is that decisions made in these meetings also affect non-eurozone EU members like Poland.

At a press conference last Wednesday, Mr Tusk responded to questions about the revelations, admitting, “You can’t

Poland’s fiscal fundamentals are weak and politically it abandoned aspiring to the role of regional leader for that of German proxy,” he said.

“For the strategy to work, there would have to be a conscious decision on the part of

“The government has been presenting the picture of a much stronger Poland in the EU than is the reality” not yet been made. But this is not a matter of ‘to be or not to be’ for Poland,” Mr Tusk said.

A German proxy?

Jan Filip Stani∏ko, a political analyst at the Sobieski Institute, said the government’s Europe policy was flawed, and that Poland’s chances of being invited to the top table had been remote from the start.

“The government has been presenting the picture of a much stronger Poland in the EU than is the reality.

Germany to pull Poland into the big league – but such a decision doesn’t seem to have been made,” Mr Stani∏ko added.

He said that irrespective of how the Polish government presents it, Poland is still regarded as an Eastern European country, “not the northern nation Mr Tusk is trying to pretend it is … we are not Holland or Belgium,” he said.

On the sidelines Poland is not the only one

COURTESY OF FLICKR /PLATFORMA RP

A draft of Europe’s fiscal union treaty keeps Poland out of key decision-making summits

Prime Minister Tusk downplayed the potential negative consequences if Poland is excluded from euro-zone summits unhappy with the way things are going in the negotiations surrounding the fiscal union.

The European Parliament rejected the latest draft outright, with MEPs who represent the EP in the group preparing the treaty saying in a joint statement that it was “unacceptable.”

According to media reports, the current draft states that the European Parliament president would not be invited to the euro-zone summits (as he is now) but would only be “informed” of decisions made after the meetings had been concluded.

This, analysts suggest, might

be one of the reasons why the European Parliament has opposed the latest draft so strongly.

French President Nicolas Sarkozy recently said that he hopes the new fiscal union agreement would be signed by March 1.

Remi Adekoya

Prescription-drug law

WOÂP set to break Health-care confusion unresolved fundraising record Parliament has gone by the National Health Fund.”

This has led to confusion among pharmacists, many of whom are charging patients the full amount for drugs they should have been entitled to receive at a discount.

The government’s response to the situation, however, has only served to further alienate pharmacists, since under the amendment pharmacists are

advocacy group, told journalists after the amendment was voted on.

He said he hoped the “asymmetry” with which pharmacists were treated would be rectified, adding that if it is not then “the appropriate decision might be made” at a convention of the organization that is due to take place this week.

Remi Adekoya

WOÂP celebrated a record-setting fundraiser

SHUTTERSTOCK

The Polish parliament has managed to raise the ire of the country’s pharmacists thanks to measures it took to address doctors’ concerns about a controversial new prescriptiondrug law that was introduced at the start of the year.

Doctors will now no longer be subject to fines if they write down an incorrect amount that the state is due to reimburse a patient on a prescription, following an amendment to the new act last week. The original version said doctors would be fined if they failed to verify and then note on any prescription they issue the level of reimbursement to which a particular patient is entitled, as well as to verify that the patient is insured.

In protest at what they saw as a burdensome layer of bureaucracy, a number of doctors embarked on what has been dubbed “the stamp protests,” writing out prescriptions with a note saying: “reimbursement level to be decided

now subject to fines if they accept a prescription that has been inaccurately filled out.

“A very strange model has been introduced: those that protest achieve their goals while those that took the matter seriously feel like they’ve had their ears clipped,” Grzegorz Kucharewicz, head of the Supreme Pharmaceutical Council (NRA), a pharmacists

COURTESY OF FLICKR/INDY

some way towards addressing doctors’ protests against a new prescription-drug law, but has angered pharmacists in the process

According to the amendment, pharmacists are subject to fines if they sell drugs at the wrong price

Over 1.2 million people attended finale events across Poland for the 20th Great Orchestra of Christmas Charity (WOÂP) in January, helping the charity to raise what looks likely to be a record amount.

Since its first edition in 1993, each year the charity has raised more money than the last. In its first year, volunteers collected z∏.2.42 million, while in 2011 the total amounted to z∏.47.2 million.

As WBJ went to press, WOÂP had gathered just over z∏.40 million, but expected to break last year’s record once all donations have been counted.

During its 20-year history,

the Orchestra, headed by Jurek Owsiak, has raised over z∏.0.5 billion and helped around 650 hospitals nationwide to purchase life-saving equipment. In the majority of cases these were hospitals and clinics which provide health care for sick children.

This year WOÂP received z∏.8 million from the Ministry of Health, to be spent on purchasing cancer diagnosis equipment. Most other monies are earmarked for the purchase of medical devices for premature babies and insulin pumps for pregnant women who suffer from diabetes.

Gareth Price

BUSINESS

JANUARY 16-22, 2012

www.wbj.pl

Public finances

5

Coal mining

Deficit measures under scrutiny JSW gears up for major investments

The EC says the Polish government is introducing appropriate measures to slash the deficit.

Experts remain critical

COURTESY OF THE EUROPEAN PARLIAMENT

Poland’s government has taken effective action to correct its excessive deficit in 2012, the European Commission said last week. However, experts consulted by WBJ painted a more nuanced picture.

The EC slashed its forecast for Poland’s deficit for 2012 to 3.3 percent of GDP, still over the 2.97 percent figure that Polish Finance Minister Jacek Rostowski has repeatedly put forward, but lower than the 4 percent the EC predicted in November. That was before Prime Minister Tusk announced a raft of reforms to the Polish tax and social security system in a November 18 speech in parliament.

Aleksander ¸aszek of the Civil Development Forum Foundation (FOR), an NGO campaigning for awareness of rising debt and deficit levels, praised the scope of planned government reforms. However, he said that these mostly comprise raising public rev-

The coal miner is aiming for self sufficiency in power production and plans to significantly increase extraction

Mr Rostowski has set unrealistic deficit targets, say experts enue rather than reforming cost-intensive sectors such as health and education.

“We know from experience that raising taxes is not good for economic growth and that social contribution increases are not good for job creation,” he said.

Janusz Grobicki, an expert at the Adam Smith Center, was also unenthusiastic about the government’s planned reforms, saying they were appropriate tools to control an overheating economy. “That’s

not the case in Poland now.

The potential for growth of the Polish economy is at about 7 percent, while GDP growth now stands at about 4 percent,” he commented.

Instead, improving Poland’s legal and tax system, lowering costs for employers to hire personnel and reducing bureaucracy for entrepreneurs would really make a difference, argued Mr Grobicki. Such measures could boost the productivity of small and mediumsized enterprises, which

account for about 65 percent of Polish GDP, he said.

Many analysts, among them Mr ¸aszek, say the government’s target of a 2.9 percent deficit in 2012 is unrealistic. For his part, Mr Grobicki said that due to the Polish economy’s strong fundamentals there is “a chance to achieve what Mr Rostowski promised to the EU.” But with the euro-zone crisis still looming, that chance still looks slim.

Alice Trudelle

Polish coal mining giant Jastrz´bska Spó∏ka W´glowa (JSW) said in a series of announcements last week that it plans to make significant investment expenditures over the next few years.

The company announced the release of a large part of its tax-related reserves, which it says will add some z∏.290 million to its 2011 results. “[These] can now be used for the company’s current investment needs,” chief executive Jaros∏aw Zagorowski said in a statement.

JSW, which is the EU’s biggest producer of coking coal, has some significant investments in the pipeline.

The company said it will launch a tender in January for the construction of a 70-75 megawatt power plant fueled by coal production waste. A total of more than z∏.500 million could be spent on the

investment, Jaros∏aw Parma, head of the group’s energy arm, SEJ, told journalists.

The firm aims to have a shortlist of up to five bidders by the end of April and to sign the deal with the selected contractor in December. Construction should start in the second quarter of next year and finish by the end of 2015.

The investment is being made as part of the group’s strategy to become self-sufficient in power supply generation. It currently produces around 70 percent of the energy it consumes.

JSW also announced last week that it intends to invest in increasing annual production to 14 million metric tons by 2015, from the roughly 12.6 million tons extracted last year.

“Ultimately we want to maintain the volume in the coming years,” Mr Zagórowski told journalists, saying the company hopes to do this without increasing employment levels.

Mr Zagórowski added that the coal miner plans to spend at least 30 percent of last year’s net profit on dividends.

Gareth Price

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BUSINESS

www.wbj.pl

TP to pay €550 million settlement Poland’s Telekomunikacja Polska and Danish Polish Telecommunication Group came to an agreement regarding an 11-year dispute. TP will pay €550 million to DPTG in settlement for the distribution of profits on a fiber optic project built in Poland in the 1990s by DPTG for Poczta Polska Telefon i Telegraf, the legal predecessor of TP. TP had contested a clause granting the Danish company nearly 15% of profits over a 15year period. “We have chosen a difficult solution that is, however, the best one for TP and its shareholders,” Maciej Witucki, president and CEO of TP, said in a statement.

Service-center market booming Poland’s service-center market continued to fare well in 2011, with the sector worth some z∏.13 billion last year, reported Rzeczpospolita.

Poland is currently the most mature location for modern services in Europe, and one of the top five locations in the world, according to Everest Group, an executive recruiting firm. Across the country, some 300 service centers already employ about 80,000 workers, which is more than in any other country in Central and Eastern Europe. And the latest data from the Association of Business Service Leaders in Poland (ABSL) predicts employment in the sector could top 100,000 by 2013.

Polish rail gets z∏.3 billion investment Investment in Polish railway infrastructure rose by almost 25% to a record z∏.3.1 billion last year, according to research firm PMR. In 2010, investment in the development of railway infrastructure reached z∏.2.5 billion, compared to just z∏.0.88 billion in 2005 – when EU grants for rail construction first became available.

Experts predict the rail network will see even more investments in 2012. ●

JANUARY 16-22, 2012

Dividend payouts

Lower dividends in 2012?

New rules affecting the banking and natural resources sectors mean dividend payouts may be less spectacular this year Although analysts expect many Warsaw Stock Exchange-listed companies to pay out healthy dividends this year, new taxes on natural resources as well as recommendations from Poland’s Financial Supervision Authority (KNF) are expected to limit the size of some payouts.

Big dividend-ers?

The analysts WBJ spoke to named several stocks they expect to pay out high dividends for 2012. Here are those companies’ dividend payouts per share in 2011 PZU

z∏.26.00

KGHM

z∏.14.90

Pekao

z∏.6.80

Citi Handlowy

z∏.5.72

PKO BP

z∏.1.98

PGE

z∏.0.65 Source: KBC Securities

Waldemar Stachowiak, an analyst from Ipopema Securities, told WBJ that overall dividend levels will be lower this year. One of the reasons is the government’s proposal for new taxes on natural resources – with a tax on silver and copper extraction being one of the most controversial. This tax is mainly expected to have an impact on Polish metals miner KGHM. Nevertheless, a number of experts believe the firm’s stock may continue to do well, thereby providing healthy yields to shareholders. KGHM CEO Herbert Wirth has said the tax might mean the firm has to limit investment and takeover plans, although he didn’t mention dividend payouts.

Marcin Materna, an analyst at Millennium Dom Maklerski, said KGHM will likely pay out one of the highest dividends for 2012.

Poland’s largest power company, PGE, as well as its largest insurer, PZU, are also expected to pay out some of the largest dividends this year, Mr Materna added.

Securities trading

COURTESY OF THE STATE TREASURY

6

Dividends from WSE-listed companies will be impacted by regulatory changes Bank regulation The overall size of dividend payouts this year is also expected to be strongly influenced by the KNF’s new regulations on the financial sector. The KNF wants banks to restrict dividends to a maximum of 50 percent of net profit, unless they have stable ratings from international agencies such as Moody’s.

Micha∏ Konarski, an analyst from Wood & Company,

said financial institutions are unlikely to attempt to circumvent the KNF’s recommendations, as they are traditionally treated more like hard-andfast regulation than advice.

However, that’s not to say certain banks are not forecast to pay out some tidy sums. Mr Konarski said PKO BP is one lender which already fulfills the regulator’s new set of rules and is therefore likely to pay a

healthy dividend for 2012.

Mr Materna also said he expects two banks – Citi Handlowy and PKO BP – to pay out some of the largest amounts to shareholders from among Polish lenders.

Marcin Jab∏czyƒski, an equity analyst at Deutsche Securities, told WBJ that he also forecasts Bank Pekao to pay out strong dividends.

Ella Pa∏ka

Pharma industry

Traders abroad soon to Pharmaceutical sales worth a be able to buy and sell record z∏.2 billion in December directly on the WSE Strong consumer Polish IT firms are working on introducing technology that will allow direct trading from abroad Polish technology firms Asseco, Comarch and Sygnity are all currently working on creating IT solutions that will enable both brokerage houses in Poland and investors located abroad to use the Warsaw Stock Exchange’s new Universal Trading Platform (UTP).

Pawe∏ Borzestowski, vice president of the management board at Asseco Poland, said that the UTP system is expected to be ready to use in Q3 2012.

“UTP is an internal project being introduced by the Warsaw Stock Exchange. It’s a more modern system that provides for new transaction capabilities.

It will also be faster,” he added.

Although representatives from WSE would not comment on the UTP technology when contacted by WBJ, it is expected that the new system will significantly increase the volume of transactions on the Polish stock exchange.

In Poland the “main players are local,” Mr Borzestows-

ki said, adding that there is now a growing demand from outside investors to participate in the Polish market.

In essence, the WSE’s new system will aim to, “satisfy international standards for stock exchanges,” Mr Borzestowski said.

According to Micha∏ Michalski, director of investor relations at Sygnity, there are currently three main ways for a foreign brokerage to trade on the Warsaw Stock Exchange.

“Firstly, in its broadest form as a direct member of the WSE, it may place orders directly; in addition, it may also lead the securities settlement.” Furthermore, “as a remote member of the stock exchange, it may place orders directly, but it is the local partner who leads the securities settlement. In the third variant, the entire activity may be conducted through a local partner,” Mr Michalski added.

Sygnity will adapt to the new system by using FIX protocol to enable an online connection between foreign brokerage houses and those currently trading on the WSE. Ella Pa∏ka

spending ahead of new laws governing prescription drugs underlay the high sales figure Pharmacies in Poland purchased medicine and other pharmaceutical products from wholesalers for z∏.1.96 billion in December 2011, a 14.3 percent year-on-year rise and a record for that month.

The final month of last year proved to be a boom period for Poland’s pharmaceuticals market as consumers, worried about possible price rises and the removal of certain products from the list of those reimbursed by the state, stockpiled medicines ahead of controversial new legal changes governing prescription drugs, which came in to effect on January 1.

“The announcement of the new list of reimbursed drugs from January 2012 sparked panic purchasing in December. Fearing higher prices of medicines and the removal of some of them from the lists of reimbursement, patients often bought drugs in reserve,” Marcin Gawronski, an expert from IMS Health, said in a

statement.

In total, sales of medicines and pharmaceutical products in 2011 rose by 4.8 percent, to more than z∏.23.3 billion. The first quarter was the most profitable for producers as pharmacies purchased drugs worth z∏.6.3 billion, a rise of 10 percent on Q1 2010.

In the next two quarters growth barely exceeded 1 percent but strong sales, particularly in December, meant that in the final quarter of the year sales amounted to z∏.6.3 billion, a rise of 7 percent yearon-year.

March was the year’s best

month, with z∏.2.2 billion worth of sales, while July proved to be the least successful – with drugs worth a total of almost z∏.1.7 billion being sold to pharmacies.

However, looking forward to next year and the impact the new laws governing the reimbursement of prescription drugs will have on sales, Mr Gawronski said, “2012 is a period when new legislation is introduced and reimbursement associated with this change may have a significant impact on the dynamics of the market.”

David Ingham

Panic buying Polish wholesale drug sales 2011 January – December 2011 (in z∏.billion) 15

2.5 Market growth (% y-on-y) 2.0

12

1.5

9

1.0

6

0.5

3

0.0

0

-0.5

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

-3

Source: PMR

FINANCE & ECONOMICS

JANUARY 16-22, 2012

www.wbj.pl

7

Labor market

Public finances

Unemployment rises to 12.5% in December

Poland’s 2011 deficit z∏.15 billion lower than forecast in budget

David Ingham

Unemployment ups and downs Poland's unemployment rate, December 2010-December 2011

14

13

12

11

Source: Central Statistical Office, Ministry of Labor and Social Policy

Remuneration

Wages rise 5.5% in first three quarters of 2011 ket.”

Germany’s economy contracted year-on-year in the fourth quarter of 2011, leading to worries that Europe’s most powerful economy could experience a small recession.

This could impact on Germany’s ability to support bailout funds for struggling euro-zone countries.

David Ingham

It pays to live in Mazowieckie Average monthly wages and salaries in Poland by voivodship, Q1-Q3 2011 (in z∏.)

5,000

4,250

3,500

2,750

ko -M a Po zur dk sk ar ie p Ku jaw L acki sk ubu e o-P s k Św omo ie ięt rsk ok ie rzy Po skie dla Lu skie be Za ls ch od Łó kie nio dz po kie mo rs O ki Wi pol e elk sk op ie Ma ols ∏op kie Do ols lno kie ślą Po skie mo rsk ie Ma Śląs zo kie wi ec kie

2,000

ńs

Over the first three quarters of 2011 the average monthly gross wage in Poland amounted to z∏.3,415.98 – 5.5 percent more than for the same period of 2010, according to a January report from Poland’s Central Statistical Office (GUS).

In the public sector the average wage increased by 5.4 percent, and by 6 percent in the private sector.

Compared to the first nine months of 2010, the highest growth in Q1-Q3 2011 wages was observed in sectors including agriculture, forestry and fishing (12.7 percent), mining and quarrying (10.8 percent), and administrative and support services (7.5 percent).

The lowest wage increases were in scientific and technical activities (2.3 per-

cent) and human health and social work (2.6 percent).

Looking forward to this year, Agnieszka Decewicz, an economist at Bank Zachodni WBK, said, “We foresee some deterioration in the future.

The main reason [for this is] the expected slowdown in the euro zone, the EU and in particular Germany, which is Poland’s largest export mar-

Wa rm i

A slowdown in neigboring Germany, however, likely heralds deterioration in the future

Source: Central Statistical Office

The European Commission praised Poland for the “effective action” it took to control the shortfall in its finances Poland’s Finance Ministry said the budget deficit at the end of 2011 likely stood at about z∏.25 billion – z∏.15 billion lower than the amount forecast in the government’s budget plan for the year.

The ministry made the estimate of z∏.25 billion based on data for the first 11 months of 2011.

“Measures announced for 2011 … have been smoothly implemented and have contributed to achieving this excellent outcome,” Finance Minister Jacek Rostowski wrote in a letter to vice president of the European Commission Olli Rehn, outlining Poland’s financial situation.

Fiscal discipline, Mr Rostowski said, had been strengthened by changes to the pensions system, a temporary expenditure rule applied on all discretionary and new legally mandated spending, and a new regime that prevents the government

from increasing expenditure on a number of social entitlements.

The European Commission praised Poland on its deficit performance last week, saying changes implemented last year had put it on track to meet its targets for 2012.

“Belgium, Cyprus, Malta and Poland … countries that were at risk of not meeting their deadlines of 2011 or 2012 to correct their excessive deficit – have taken effective action,” the Commission said in a statement.

Poland was one of five countries which received a letter from Mr Rehn in November last year warning that they were not on course to meet the common European fiscal criteria for 2012.

Despite the EC’s praise, the general government deficit for 2011 is expected to come in at 5.6 percent of GDP – far below the 3 percent required by the euro convergence criteria. Mr Rostowski admitted in his letter to Mr Rehn that 2011’s is still a “relatively high deficit.”

The finance minister explained that last year had witnessed “a peak in public investment, the highest in the EU which, while supporting GDP growth, generates a larger general government deficit.”

Poland aims to reduce the deficit to below 3 percent of GDP by the end of this year.

Gareth Price

COURTESY OF THE EUROPEAN PARLIAMENT

that although more Poles were unemployed in 2011, the annual increase was significantly lower than a year earlier.

In December, only 34,600 new jobs were created, 10,300 fewer than a month earlier. A decrease in the number of vacancies monthon-month occurred in 15 voivodships. This ranged from a 45.4 percent decrease, or 2,100 available jobs, in the Wielkopolskie voivodship to a 7 percent decrease, or 100 jobs, in the Âwi´tokrzyskie voivodship.

c.

'10 Jan . '1 Feb 1 . '1 Ma 1 r. ' 1 Ap 1 r. ' 1 Ma 1 y '1 Jun 1 . '1 1 Jul . '1 Au 1 g.

'1 Se 1 p.

'1 Oc 1 t. ' 1 No 1 v. ' De 11 c.

'11

The number of unemployed people in Poland reached 12.5 percent in December 2011, 0.4 percentage points more than a month earlier, according to figures from the Ministry of Labor and Social Policy. The same period of 2010 saw a m/m increase of 0.7 percentage points to 12.4 percent.

The year ended with 1.98 million citizens registered as jobless, with the last four months of 2011 seeing the number of unemployed increase by some 128,000. In December, 68,100 more people were registered as unemployed than a month earlier.

The Ministry of Labor and Social Policy wrote in a statement that increased unemployment during the final month of the year was expected.

Office and factory workers were most affected by redundancies and the ending of fixed-term contracts that were not extended by employers.

“December is [normally] a period for returning to registered unemployment,” the ministry wrote.

“In addition, a lower number of vacancies, including subsidized jobs, contributed to the growing unemployment. December is also a period of time when seasonal work, especially in forestry and horticulture, ended. For its part, work in the construction industry continued in many cases due to the favorable weather conditions,” the ministry added.

For full-year 2011 the number of unemployed Poles increased by some 28,300, or 1.4 percent, compared to a 3 percent annual increase in 2010. This means

De

Office and factory workers bore the brunt of the layoffs

European Commissioner Olli Rehn had earlier sent Poland a letter warning it about its deficit

8

INTERVIEW

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PGNiG in z∏.3 billion Vattenfall purchase State-controlled oil and gas company PGNiG has finalized the purchase of a 99.8% stake in Vattenfall Heat Poland (VHP) for z∏.3.017 billion.

“Owing to the VHP acquisition, PGNiG is becoming an energy conglomerate providing customers with multiple energy carriers, including heat, electricity and gas,” PGNiG said in a statement. The production capacities of the Coal Handling and Preparation Plant and power plants owned by VHP are responsible for over 23% of the total installed heat capacities in Poland.

Poles fearful over crisis A total of 87% of Poles think the economic crisis will negatively impact their country, according to a new survey by the Public Opinion Research Center (CBOS). Of those polled, 81% believe the crisis will directly impact their families. ●

JANUARY 16-22, 2012

Ruling coalition

A coalition of compromise Jan Bury, chairman of the Polish People’s Party (PSL) parliamentary caucus, talks to WBJ about relations in the ruling coalition, the attitude of his party towards Prime Minister Donald Tusk’s reform proposals, and the need for compromise Ewa Boniecka: Relations within the governing Civic Platform-PSL coalition have changed markedly since the last parliamentary term – there is now visible tension and differences in opinion towards reforms announced by Prime Minister Donald Tusk. Why exactly have things changed?

Jan Bury: Nothing has changed. The coalition formed in the last parliament, which lasted for a full term – the first time this has happened in Polish politics for 20 years – functioned well and the voters gave us their support for a second term. I am convinced therefore that the present coalition, in spite of the various difficulties that it faces, and the crisis in Europe will cooperate fully in the interests of Poland.

But, for example, your party opposes the government’s proposal to increase the retirement age for both men and

women to 67 years, and has even put forward its own, alternative, proposal.

It is obvious that Civic Platform (PO) and the Polish People’s Party have their own political characteristics and programs and the fact that we are in a coalition does not mean PSL doesn’t have the right to present its own projects. PSL’s parliamentary caucus is working on proposals, just as PO’s caucus is, so PSL does and always will present its own legislative proposals. Some of these differ from those presented by Prime Minister Tusk. PSL is a responsible party which has its own ideas for reforming the country. These should be discussed and it is natural that ... our two parties’ proposals should be the subject of discussions within the coalition. This also concerns the issue of increasing the retirement age for men and

women and PSL’s proposal to reduce the retirement age for women who have raised children by three years for each child they have had. We can of course talk with PO about the amount of time women can have deducted for each child … yet we want to stick to the proposal.

It appears as if PSL wants to show its sensitive, social face, and by distancing itself from some of PO’s proposals it is playing its own political game.

How long will you be able to pursue this strategy while remaining within the coalition government?

We are not playing a political game, yet we think that parties within the coalition have to talk to each other about searching for the best solution for reforming the country. The coalition government wants to realize many important reforms, yet it is not true that only some politicians are the wisest in the world and have the best answers, while others are only able to raise their hands and vote for their projects. If this were the case in our coalition, it would be a bad coalition.

A good coalition means dialogue, cooperation and also the ability to find compromise when trying to achieve the best solutions. And I can give you examples showing that such compromises are possible: Within the last few weeks two parliamentary commissions have been working on amendments to the proposed subsidies for schools. PO proposed that they be reduced from the present 0.6 percent to 0.25 percent of the budget, while PSL members argued for keeping them at their present level. As a result of discussions between our MPs a compromise decision was reached that will see them reduced to 0.4 percent.

It is the general opinion of independent analysts that the most painful economic and social reforms should be carried out in the first year of the new government. This is also the intention of Donald Tusk.

However, PSL leader and Deputy Prime Minister Waldemar Pawlak is trying to distance himself from reforms to the retirement system and the party is presenting alternative proposals for reforming

KRUS (the Agricultural Social Insurance Fund). Do you prefer the policy pursued by the government in the last parliamentary term of postponing the most difficult reforms?

No, PSL supports the policy of reforming the country, and we also think that reforms can be performed in each year of the government’s term, without being artificially sped up.

Donald Tusk has promised to present a bill regulating the matter of in vitro fertilization, yet even within PO opinions are divided. How do you see the situation being resolved, and will PSL support the government’s final draft bill?

First of all, Civic Platform has to resolve its inner differences about in vitro, because there are now two projects prepared

by PO MPs – one quite liberal, prepared by Ma∏gorzata Kidawa-Bloƒska, and the other rather conservative, prepared in the previous term by Jaros∏aw Gowin.

When Civic Platform has prepared its final project and presents it to us, as a coalition partner, and to the Sejm, we will work on it. Generally in ethical matters MPs in all par-

INTREVIEW

COURTESY OF THE STATE TREASURY

JANUARY 16-22, 2012

Mr Bury says Civic Platform would be mistaken in thinking life would be easier with a new coalition partner ties can vote according to their conscience. In my opinion the matter of in vitro should be legally regulated in Poland and personally, as a citizen, I think that if the problem concerns a few hundred families in Poland who can not have children in a natural way, they deserve to receive support.

Recently, differences between PSL and PO have surfaced over their respective attitudes towards deeper European integration. I, along with many other observers, was surprised

by Waldemar Pawlak’s recent remark that if the euro zone is not able to deal with the crisis, one solution could be for countries to adopt national currencies. How do you see the situation?

What is so surprising about that remark? Waldemar Pawlak said in the parliamentary debate that the euro is the common success of 17 members of that zone and other countries want to join it, but that it is now facing the biggest crisis in its history. If the euro zone is not able to resolve its crisis, one solution could be a return to the system where the euro plays the role of a settlement currency. He pointed to an alternative scenario, that’s all.

PSL has always been and still is a pro-European party, maybe more “eurorealistic” then “euroenthusiastic” – as is Civic Platform. This is not the first time we have expressed our own separate

positions towards European matters.

PSL’s traditional rural electorate has gained a lot from the European Union. Do you think that in this present time of financial crisis in Europe and attacks by some member states on the EU’s current agricultural policy, the policies that benefit your core electorate will be retained in the next budget?

There is no doubt that Polish villages and rural communities

tion breaks up, leading Donald Tusk to establish a new coalition – for instance with the Democratic Left Alliance (SLD)?

Our coalition is a responsible project that is meant to last for a full term. Fundamental to this is mutual trust.

Yet any agreement, even one which is signed, is not guaranteed for ever because life and politics can present various new scenarios. Nevertheless, we think that the coalition between our party and PO is

“PSL, like Civic Platform, is proEuropean but more ‘eurorealistic’ than ‘euroenthusiastic’” have changed a lot during the last seven years and this is to a great extent due to EU funds.

I think that agricultural policy won’t change significantly in the next EU budget because it is seen as important for modernizing and developing rural areas. Contrary to a common Polish belief, there are a lot of small and not very rich family farms in Greece, Italy and Hungary, and they all need support.

How realistic is a scenario in which PSL does not support Civil Platform in pushing through some of its most important legislation, such as reforms to the retirement system and KRUS, and the coali-

the best for Poland and its people. Cooperation between Waldemar Pawlak and Donald Tusk is based on mutual understanding and I think that our feelings of responsibility towards the state will allow us to overcome differences in our approach to certain problems. But if our partner thinks it would be easier and more cozy with another partner, I will remind them of some previous experiences, such as that of Prime Minister Leszek Miller’s SLD-led government. Mr Miller came to the conclusion that he would be able to deal better with smaller partners, but we all know what the end was for his government. ●

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10

TAX

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JANUARY 16-22, 2012

Tax Eye

American expats: large fines for failing to comply with US tax laws Jakub Kucharczyk, Aldona Leszczyƒska-Mikulska On December 8, 2011, the US Internal Revenue Servicee quietly published a fact sheet on its website summarizing the tax and reporting obligations of US citizens living abroad. The publication, along with earlier announcements, represents a shift in the US government’s tax enforcement efforts that means taxpayers who may have been honestly unaware of their obligations are now in the spotlight. In early 2011, IRS commissioner Douglas H. Shulman’s said that “[the IRS is] not letting up on international tax issues, and more is in the works. The risk of being caught will only increase.”

Over the past five years the US government has aggressively pursued tax enforcement beyond its own borders – first, by prosecuting Swiss bankers and their US clients and then by initiating two amnesty programs designed to capture hidden offshore bank

accounts, all while opening new offices abroad and adding staff to existing overseas offices. These efforts have proved to be enormously successful, netting tens of thousands of non-compliant taxpayers and hundreds of millions of dollars in back taxes and penalties. Even honest Americans abroad are now afraid that if they don’t somehow clean up their US tax situation, they will be stopped and questioned upon returning to the US, or worse.

Reporting obligations In Canada, home to over one million Americans, the resulting public outcry has prompted negotiation between leaders of both countries. As of press time, the IRS had confirmed that an announcement of a tax amnesty for Americans in Canada is imminent. But for Americans living abroad and with business interests elsewhere, the solution will be

less straightforward. The first step, however, is to understand the US tax and reporting obligations.

Generally, all US citizens and US permanent residents must file an annual income tax return reporting worldwide income, regardless of where they reside. Failing to do so may subject a US person to penalties of up to 25 percent of the amount of tax due, plus interest thereon.

Many non-filers rationalize that they owe no US tax as a result of a credit given for taxes paid in their resident country. Even this flawed justification is not available to many Americans in Poland, as most liberally treat themselves as non-tax residents of Poland, paying minimal Polish income tax.

Furthermore, irrespective of their tax liability, Americans

abroad must file certain other reporting forms, most importantly the Report of Foreign Bank Accounts, commonly known as the “FBAR.”

FBAR Each US person who has a financial interest or signature authority over a foreign bank or financial account with a value of at least $10,000 is required to file a FBAR annually. Owning a foreign bank account, directly or indirectly, or having the authority to control an account owned by someone else, including an employer, may create an obligation to file the FBAR. The penalties for failing to do so are severe: $10,000 per account up to the greater of $100,000 or 50 percent of the value of the accounts, depending on the

“Even honest Americans abroad are now afraid”

willfulness of the filer.

US persons living abroad should consult with a counsel to determine their filing requirements and will very likely be able to avoid the most draconian penalties provided they respond pro-actively. Given the onerous reporting requirements the US imposes on its citizens and Green Card holders regardless of where they reside, many Americans living abroad, including in Poland, are considering the advantages of relinquishing their US citizenship or Green Card.

The consequences of expatriation are complicated and should be considered carefully with a trained tax advisor.

Americans in Poland should also be mindful that the tolerant stance the Polish Ministry of Finance has taken over the last 20 years with regard to individuals declaring limited tax residency in Poland is now being reassessed. Recently, the

Ministry of Finance has dedicated staff in tax offices to be in charge of more systematic analysis of the annual tax statements of non-residents. Time will tell how effective these changes will be, but it is clear that the authorities on both sides are taking an active approach with regard to issues affecting the taxation of Americans in Poland. ● Jakub Kucharzyk is an attorney with Kaye Scholer LLP in New York focusing on international tax and estate planning matters. He can be reached at jakub.kucharzyk@ kayescholer.com.

Aldona LeszczyƒskaMikulska is a legal advisor (radca prawny) and tax advisor with Wardynski & Partners, Warsaw office, head of the private client advisory group. She can be reached at aldona.leszczynska-mikulska@wardynski.com.pl.

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

Each municipality responsible for waste management

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Have the most valuable news delivered to your inbox each weekday morning.

On January 1, 2012 a new system of waste collection and recycling was implemented. The changes result from a recent amendment to the Law on Maintenance of Cleanliness and Order in Municipalities.

Municipalities are to take over the duties of real estate owners with respect to waste management. Each municipality is obliged to conclude a contract for communal waste collection with a private waste-collection enterprise chosen through a tender. Moreover, municipalities are obliged to ensure that regional installations for processing communal waste are constructed and utilized. These installations should belong to a given municipality or be jointly owned by several municipalities.

Individual entrepreneur proxy registration From January 1, 2012, the data of a proxy who has been authorized to conduct the affairs of an individual entrepreneur may be registered in the Central Business Activity Records and Information office (Centralnej Ewidencji i Informacji o Dzia∏alnoÊci Gospodarczej – CEIDG).

Changes in social insurance An important amendment to the Law on the Social Insurance System was introduced on January 1, 2012. Since that date

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

employers have been released from the obligation to issue ZUS RMUA forms every month. These forms provide confirmation to health-care institutions of a patient’s right to free-of-charge treatment.

Employers will be obliged to provide ZUS RMUA forms every month only if an employee requests they do so. Moreover, the deadlines for refunds of social insurance premiums paid in excess or not paid in full has been shortened from 10 to five years. The period for which employers are obliged to keep copies of documents confirming that premiums have been withheld was also shortened to five years.

Entrepreneurs to disclose web addresses in National Court Register Provisions of the amendment to the Law on the National Court Register came into force on January 1, 2012. They broaden the scope of information that entrepreneurs are obliged to disclose in the National Court Register. Now, entrepreneurs are to disclose their web address and e-mail address. The provision in question is applicable to all entities entered in the entrepreneurs’ register.

The amendments have made it necessary for the forms used to make entries in the National Court Register to be changed. The KRS-Z3 form, for example, now contains a relevant box for disclosing new information. ●

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OPINION & ANALYSIS

JANUARY 16-22, 2012

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The perils of Europe’s navel gazing

W

hile the world anxiously awaits the climax of the eurozone drama, its leaders’ behavior resembles the political equivalent of what physicists call “Brownian motion,” with officials bouncing randomly from one crucial bilateral consultation and vital European summit to the next. The impact of make-or-break declarations that are supposed to solve the monetary union’s problems dissipates almost as soon as they are issued.

Adjusting to reality Meanwhile, a plethora of diagnoses and prescriptions are competing for attention – and in their gloominess.

But their overwhelming focus on the economics of the euro crisis is itself part of the problem because the crisis is, above all, a reflection of deep-seated weaknesses in European institutions and the fabric of European society. Otherwise, what began as a marginal debt crisis, aggravated by political indecisiveness in Greece and in the European Union as a whole, would not have grown into an existential watershed moment for the European project.

Europe is plagued by three distinct problems. First, it remains incapable of adjusting to the realities of a world whose center of gravity has irrevocably shifted eastward to the Pacific, pulling with it the attention of the United States. Second, more than ever, Europeans are looking inward, as a sense of entitlement meets pervasive skepticism – a combination that permeates to the highest echelons of the EU and national governments.

Meanwhile, at a time when the EU’s basic law, the Treaty of Lisbon, needs to be reformed, the entire Union is paralyzed by the navel-gazing attitude of a Germany beset by 90-year-old memories of the doomed Weimar Republic. Therein lies the problem: the decision-making process that has underwritten much of the EU’s construction, while highly effective during the Cold War, when the Union’s institutional and legal foundations were laid, has remained largely intact, leaving Europe unable to address its current challenges.

Founded on the stability of the Cold War era’s bipolar international order, the EU had the luxury of time

as it deliberated on each successive building block of its growing edifice.

No sooner would a new block be set in place than agents of further integration would infiltrate the existing structure and establish the bridgeheads from which the EU would evolve further.

Cast adrift Indeed, some of the EU’s major undertakings – the European Monetary Union being a fitting example – were contemplated for years before seeing the light of day. The EMU, implemented in 1999 with the launch of the euro, bore the DNA of the Delors Committee, which laid out the fundamentals of the common currency in 1988. Critics have been quick to dismiss the incomplete nature of the euro’s original structure, which remains unchanged to this day. But these critics forget that the greatest miscalculation was the assumption of stability while on the verge of a systemic transformation impregnated with volatility.

Europe’s current crisis is rooted in loss. Untethered from the mooring of Cold War-era bipolarity, Europe was

swept off its feet and cast adrift in the currents of a globalized world, unable to find either its place or direction.

Most critically, Europe’s old instincts and modus operandi persisted long after the new contours of global affairs had taken shape.

They still do. That is why, in facing its gravest test so far, Europe seems oblivious: its leaders project confusion and indecision; its citizens exude a mixture of complacency, indifference, and self-doubt; and its institutions are locked in turf battles and remain hindered by laborious procedures and protocol.

A new design It is also part of the reason why markets are besieging the euro zone so incessantly. What investors sense is not weak economic fundamentals, but Europe’s weak political fundamentals – the absence of a governance structure with real power and the will to use that power to resolve problems. If Europe is to adjust to the requirements of the new “Pacific world,” it does not need fine-tuning; it needs a new design.

The EU is a political structure

Ana Palacio based on the rule of law. As such, it cannot afford to disregard the vital tasks of updating its procedural components. On a deeper level, Euro-

“Untethered from the mooring of Cold War-era bipolarity, Europe was swept off its feet and cast adrift in the currents of a globalized world” peans need to replace their melodramatic, and entirely groundless, selfdoubt with the pride and determination befitting their example of democracy and prosperity. And, most immediately, Germany must stop singing solo and start playing its part in the European choir. ● Ana Palacio is a former Spanish foreign minister and former senior vice president and general counsel of the World Bank.

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

The new US defense strategy: A wake-up call for Europe

T

he new strategic defense guidance from the Obama administration aims to refocus the US defense posture on the increasingly competitive security environment emerging in the Pacific. It also (despite the Pentagon’s protestations to the contrary) appears to put an end to the era of large-scale counter-

“If the US is engaged in conflict on the other side of the globe, Europe needs to be ready to respond first” insurgency and stability operations.

Last but not least, it implies a strategic shift away from Europe.

A decisive point It thus brings the United States and Europe to a decisive point in their

relationship: they will need to reframe the division of labor in the security dimension of the transatlantic alliance.

The Obama administration’s planned $489 billion defense cuts over 10 years means that any buildup of US capacity in Asia will have to be offset in part through further reductions in the US presence in Europe.

Cuts may even be double that if Congress fails to reverse massive automatic budget reductions by 2013.

Moreover, under the “one war, one spoiling action” formula espoused by the 2012 Defense Strategic Guidance, the United States’ role in NATO may shift from that of ultimate European security provider to more of an enabler of European defense.

The implications for Europe are significant. Simply put: if the United States is engaged in a conflict on the other side of the globe, a contingency that could develop in or near Europe would require Europe to be ready to respond first.

Questions to answer The “burden-sharing” debate has thus been redefined. Of course, the United States retains a strategic interest in Europe, Eurasia, and the Middle East. But it will have to come to a much more explicit understanding with Europe about respective regional interests: where do they intersect/diverge? Is it possible, and if so under what circumstances, to generate a credible sense of shared responsibility? And what assets and capabilities can Europe bring to the table – particularly if US assets are needed elsewhere?

The United States might opt for issue-based cooperation with individual countries or with regional groupings within the NATO framework.

This could balance near-term the tilt of US strategy towards Asia and create a pathway for the United States and Europe to maximize their shrinking capabilities on the continent and preserve the mutuality of their defense commitments. But will that be enough security for Europe? Does

the European Union’s Common Foreign and Security Policy (CSDP) have an answer to this question? And is anyone even asking that question in Brussels or national capitals?

Cash-strapped One thing is clear at any rate: At a time when 40 cents of every dollar Washington spends is borrowed, Europe can no longer expect that the United States will remain its sole security provider. As long as the EU does not provide persuasive assets and capabilities that justify the as yetelusive pursuit of an EU-NATO partnership, security cooperation under the NATO umbrella is the more realistic way to maintain transatlantic security relations.

Admittedly, that would mean a partial renationalization of security, but it would offer real capabilities by willing players. An example of the latter is the recent Franco-British military cooperation treaty, which provides not only for nuclear sharing, but also for the creation of a joint strike force and the

11

Andew A. Michta

joint use of aircraft carriers. Central Europe might see similar arrangements, including Germany, Poland, Scandinavia, the Baltics, and Romania, for example. Combined with NATO’s deterrent capability, European forces thus configured could really pull their weight – until such time when the CSDP can actually be made to work.

Transatlantic relations remain key to the security of both the United States and Europe, but Europe’s traditional pattern of structural dependence on the United States is changing. More regional security cooperation can buttress NATO into the immediate future, as the United States pivots to the Pacific and the EU looks for larger answers to its security dilemmas. ● Andrew A. Michta is senior transatlantic fellow at the German Marshall Fund of the United States and director of the GMF Warsaw office.

Copyright: German Marshall Fund of the United States

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.

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12

COVER STORY

www.wbj.pl

JANUARY 16-22, 2012

Brendan Melck, Alice Trudelle

Energy

Poland’s energy mix set to remain coal-oriented Thirty years ago, Poland was the world’s second-largest coal exporter. The country’s transition to a market economy brought with it a significant downsize in the industry, with output falling from 193 million metric tons to just above 75 million between 1988 and 2010, according to EURACOAL, the European Association for Coal and Lignite. Nevertheless, European Commission figures show that 88 percent of the country’s electricity is still produced from coal.

Demand for coal is still growing worldwide, and today it is the fuel of choice for developing economies such as China and India. But in Europe, where coal accounts for about 25 percent of electricity production, Poland’s continuing reliance on coal is striking.

Indeed, Poland is legally bound to reduce its CO2 emissions (see Legal Eye, p. 13), but there are no plans to abandon the fuel. In fact, the industry looks like it’s in for a boost in Poland, with several largescale investments recently announced in coal mining and coal-based power plants.

New investments Perhaps the best illustration of this revival is the z∏.2 billion reopening of the D´bieƒsko mine in Upper Silesia by New World Resources (NWR), a

leading producer of hard coal and coke in Central and Eastern Europe.

According to the firm, the investment will create over 2,000 jobs, and has already attracted more than 3,000 job applications. “Our project has received a great deal of support from the local government and local communities,” said Jerzy Klinowski, vice chairman of the board and COO of NWR Karbonia, the subsidiary of NWR responsible for the investments in the D´bieƒsko mine.

The D´bieƒsko mine has estimated reserves of 190 million tons of coal, the majority of which are expected to be coking coal reserves, essential in the production of steel. The company expects to start mining in 2017, and to extract around 2 million tons of coal per year.

“We are strategically located in the region, and NWR supplies to a blue-chip customer base, including ArcelorMittal, CEZ, Dalkia, Dunaferr, Moravia Steel, U.S. Steel, Verbund and Voestalpine, located in countries including Poland, Austria, the Czech Republic, Germany, Hungary and Slovakia,” said Mr Klinowski.

Another raft of investments will soon take place in the sector of coal-based power generation. Two-thirds of the installed coal capacity in

SHUTTERSTOCK

Despite Poland’s commitment to European CO2 emissions reduction targets, several major investments indicate that the country’s coal industry isn’t going anywhere

Poland’s coal-powered Be∏chatów plant is Europe’s most-polluting Poland was built more than 30 years ago, and almost a quarter of the current generation capacity will have to be phased out by 2015, according to EURACOAL. Additionally, Polish energy consumption, still low in comparison to Western Europe, is scheduled to grow significantly in the coming years.

“Consumption of electrical energy in Poland is not even

half of that in Western Europe,” said Tomasz Chmal, an energy expert at the Sobieski Institute, a think thank.

“Thus, there is massive potential for growth in the powergeneration sector, as demand in Poland heads up towards the Western European levels,” he added.

According to the government’s “Energy Policy of Poland until 2030,” electricity

Powering up Planned power investments by source and share of the total planned investments in Poland, 2010-2025 1% 1%

Poland the polluter

Nuclear

9%

43%

Natural gas Lignite

34%

30,000 MW of capacity, with a total value of z∏.220 billion, according to research firm PMR. Poland’s first two nuclear power plants, due to come online after 2020, account for the bulk of the sum, and not all

Types of coal and their production in Poland Lignite (brown coal) Lignite, or brown coal, is the lowest rank of coal and is used almost exclusively as fuel for electric power generation.

Poland is the second-largest producer of lignite in Europe. In 2010, total lignite production reached 56.3 million metric tons.

Lignite-fired power stations generated 48.7 terawatt hours (TWh) of electricity, representing 30.9 percent of the total power generated in Poland, according to numbers from EURACOAL.

Hard coal

12%

In 2009, coal was responsible for 43 percent of global CO2 emissions, according to the International Energy Agency.

Poland holds the dubious record of having the most-polluting plant in Europe (PGE’s Elektrownia Be∏chatów power plant in Rogowiec, which produced 29.5 million metric tons of CO2 in 2009) and of being the second-biggest polluting country in Europe, behind Germany, according to the European Environment Agency. ●

consumption in 2030 is expected to increase by 30 percent, gas consumption by 42 percent and consumption of petroleum products by 7 percent.

Until 2025, the Polish sector is expected to see new investments generating nearly

Undefined Biomass Source: PMR

Anthracite (hard coal) Anthracite, or hard coal, is the highest rank of coal and is used primarily for residential and commercial space heating.

Poland’s hard-coal reserves form 78 percent of the EU total.

Commercially workable hard-coal reserves are located in primarily in the Upper Silesian basin, which accounts for 93 percent of the total Polish and half of EU hard-coal production.

Output in 2010 was 76.6 million tons, according to EURACOAL.

COVER STORY

JANUARY 16-22, 2012

www.wbj.pl

Coal bounty Some of the major announced investments in coal-fired power plants Company

Location

Capacity (MW)

Scheduled completion

Estimated cost (z∏. billion)

Elektrownia Pó∏noc PGE Energa EDF Tauron Enea

Rajkowy Elektrownia Opole Ostro∏´ka Rybnik Bielsko-Bia∏a Kozienice

2,000 1,800 850-1,000 900 182 1,000

2016- 2017 2016-2017 2013 2016

z∏.12.4-15.4 bln z∏.11 bln z∏.6-7 bln z∏.7.2 bln -

Environmental concerns Many of the planned investments are replacements and should have higher energy efficiency than the old plants. “We feel that if we combine new technologies, enabling us to get higher energy efficiency in coal-powered plants, from an average 30 percent currently to 45 percent, which is attainable due to the newest technologies, we get a reduction of CO2 by about 30 percent, close to the emissions from gas plants,” Pawe∏ Olechnowicz, chairman of the board of directors of lobby group Central Europe Energy Partners (CEEP), said in a statement.

CEEP represents 11 energy companies from the CEE, including Poland’s Enea, Energa, JSW, Kulczyk Investments, Lotos, Tauron and

W´glokoks.

But it remains that, on average, coal emits over twice as much CO2 as natural gas in electricity generation, and environmentalists argue Poland shouldn’t lock itself into a carbon-intensive energy production model for decades to come by making massive new investments. According to Karolina Jankowska, a member of Poland’s green party, Zieloni 2004, the Polish government lacks the political will to push forward renewable projects.

“The Polish government

defends the competitiveness of the coal industry – for example, by handing out free CO2 emissions rights – which is a major barrier for the development of renewable energy,” she said.

“More than two years after the announcement of the directive on renewable energy sources, there still has been no legal act passed which would ensure its implementation. In the meantime, an entire package of legal acts has been passed regarding the realization of the nuclear energy program, and also the

Europe’s coal burners Estimated share of EU CO2 emissions from combustion of solid fuels 30 25 20 15 10 5 %

Germany Poland UK Czech Republic Italy France Bulgaria Finland Greece Netherlands Spain Romania Austria Belgium Denmark Estonia Hungary Sweden Slovakia Others

the other planned projects are expected to be implemented, depending on economic circumstances. Nevertheless, onethird of the new projects are hard-coal-fired units, leading to investments totaling several billion z∏oty and a new capacity of thousands of megawatts of coal power in the next few years (see table).

Source: “The Market for Solid Fuels in the European Union in 2010 and the Outlook for 2011”

national plan for dividing up emissions rights,” Ms Jankowska added.

But the Polish government faces significant political pressure when it comes to its huge coal industry. According to a report on the coal market in the EU in 2010-2011 prepared for the European Commission, Poland’s coal industry directly employs 127,400 people, over half of the total EU coal workforce.

Both the Polish government and CEEP argue that Poland needs to exploit its available coal energy resources in order to remain economically competitive.

This position seems to enjoy strong support among the Polish public, with 68 percent of Poles in favor of using coal as a source of energy (16 percent in strongly and 52 percent fairly) and only 26 percent opposed (22 fairly and 4 percent strongly), according to a May 2011 EU-wide survey by the European Commission. These figures make Poles the strongest coal supporters in the EU.

Fuel for the fire It now seems that circumstances are converging to put

Poland’s love for coal in a more acceptable light at the EU level.

A few years ago, so-called “clean coal” technologies such as Carbon Capture Storage (CCS) were believed capable of bringing coal back into fashion. That has not happened, and “the reality is such that up till now CCS is not economically viable,” said CEEP’s Pawe∏ Olechnowicz. But coal’s availability and low cost have become more appealing, especially in light of political instability in the Middle East that has pushed up the price of oil, Russia’s enduring political control over its gas exports and the nuclear disaster in Japan last year.

European Commissioner for Energy Günther Oettinger recognized this recently, stating, “In recent years, global geopolitical developments, global economic turbulence and sometimes extreme energy prices have demonstrated the need for an increasingly strategic approach to EU and national energy policies.”

He added, “Citizens and industry are clearly reliant on energy, particularly electricity, and require it to be available at all times and at affordable prices. Together, coal and lignite account for almost 30 percent of EU electricity generation, much more in some member states. … We cannot do without coal today.”

But the real game chang-

13

er might be Europe’s economic slowdown, which makes cheap, readily available coal more attractive.

“My point of view on this subject is that climatechange politics is compounding the difficult economic situation in Europe, and developing countries understand this, and are not especially concerned about these issues, concentrating instead on their economic growth – while Western Europe is trying to fight with windmills, and plunges even further into crisis,” said the Sobieski Institute’s Tomasz Chmal.

Mr Chmal also argued that reducing Poland’s dependency on coal could also affect individual consumers by driving energy prices higher.

“It’s about end-users paying the lowest price possible in the given conditions,” he said.

This doesn’t mean that a return to coal as the main energy source in Europe is in the cards, or that it will soon lose its reputation as a dirty and old-fashioned fuel.

Reducing CO2 emissions is also likely to remain a relatively high policy priority for the EU. But with EU GDP growth forecast to ease by 1 percentage point in 2012 from already low growth of 1.6 percent in 2011, and Polish GDP growth expected to slow by about half (from 4 to 2.5 percent), it’s unlikely that coal’s opponents will gain much traction any time soon. ●

Legal Eye

CO2 allowances: EU versus Poland Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com Poland and the EU continue to be at loggerheads with respect to various elements of EU energy policy, including how to achieve the EU’s CO2 reduction targets. At present Poland, along with each of the other EU member states, is obligated to reduce the amount of CO2 emissions by a factor of 20 percent by 2020 as measured against 1990 levels. The EU Commission, however, has sought to adopt an even more ambitious CO2 reduction target of 30 percent by 2020, which Poland has led the charge to block.

The history of Polish-EU energy cooperation can best be described as an aggressive tango, with each side seeking to lead at various points in time.

Poland wins the first round On April 19, 2010, after nearly two years of litigation before the European Court of Justice, the EU Commission finally dropped its opposition to Poland’s National Allocation Plan, by which the amount of CO2 emission allowances allocated by Poland to local industry under the EU Emissions Trading System for the period

2008-2012 was set.

The EU Commission had taken Poland to task for being overly generous in the number of allowances given to industry, as well as the manner Poland had set aside reserve allowances for CO2 emitters not yet in existence. Poland had allocated up to 208.5 metric tons in CO2 allowances to Polish industry on an annual basis.

Within this figure Poland had also set aside allowances for companies not yet in existence, in effect creating more allowances than actual CO2 emissions.

On this final point the EU Commission had objected, but following the submission of an amended National Allocation Plan by Poland, the EU Commission relented. The 20 percent reduction target, as well as the number of CO2 allowances, remains unchanged. Beyond 2012 the number of annual CO2 allowances is to be gradually reduced.

Was Poland right?

Pursuant to Art. 9 of Directive 2003/87/EC, each member state “shall develop a national plan stating the

total quantity of allowances that it intends to allocate” to CO2 emitters.

EU law does not in fact specify the number of emission allowances that a member state may issue to a particular industry or greenhouse gas emitter. Nor does EU law impose an overall cap on the total number of emission allowances granted by each member state. In lieu of defining specific caps for each member state, EU law merely provides for certain criteria to be observed by each member state in calculating the number of allowance points to be included in each State’s National Allocation Plan.

For instance, the total quantity of allowance points should be consistent with a member state’s obligation to limit its emissions in accordance with the Kyoto Protocol. Specifically, “the total quantity of allowances to be allocated shall not be more than is likely to be needed for the strict application of the criteria” defined in Annex III to Directive 2003/87/EC. In other words, the number of allowance points is not clearly defined, and on this basis Poland prevailed in its standoff with the EU Commission.

The cost to industry As of today, approximately 90 percent of all emission allowances granted by Poland under its National Allocation Plan to local industry have been given away for free or at a nominal charge, in large part due to Poland’s decision to award as many allowances as necessary to cover current emissions.

This does not mean, however, that the industry has not already incurred a cost to comply with the EU’s CO2 reduction targets. Beginning in 2013 the number of emission allowances granted for free each year to the industry will be reduced, thereby increasing the price of the remaining allowances. In anticipation of such costs, Polish industry players have begun to invest in newer technologies to reduce CO2 emissions.

Poland delays second round Despite reaching agreement with the EC in 2010 on the amount of its CO2 allowances, Poland again finds itself on the defensive with respect to its National Allocation Plan. Germany, France and the UK have called for raising the CO2 emission reduction

target from the current 20 percent to 30 percent by 2020. In June 2011 Poland led the fight against an EU Commission proposal to increase the reduction in CO2 emissions to 30 percent, with the European Parliament defeating such a proposal by a mere nine votes.

In July 2011 Poland took over the revolving six-month presidency of the EU, in effect blocking any further attempt by other member states to push for further reductions during the second half of 2011. Now, however, under the Danish presidency, a renewed push to adopt a more ambitious CO2 reduction plan is expected, as well as an effort to boost the price of emission allowances by reducing the number of emission allowances trading on the EU’s Emission Trading System.

Time will tell if Poland can continue to persuade enough fellow member states to vote against tougher CO2 reduction targets, or whether it will be forced to use its veto in the EU Commission to block any attempt to increase the target to 30 percent. ●

Hitler’s Wolf’s Lair WWII headquarters in northeastern Poland needs a lessee

Azora Europa has acquired two buildings in Kraków’s Green Office complex

16

18

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

Warsaw Chopin Airport terminal in for z∏.300 million reconstruction

Echo Investment and Ravenna Warszawa have signed a purchase and sale agreement concerning the former Mercure hotel building in central Warsaw. The value of the transaction, which concerns a 3,300-sqm plot and a building which housed the hotel, amounts to €31 million. Echo Investment is planning to demolish the former hotel building and develop a new office tower on the site. The scheme, for which the company has already obtained a planning decision, will stand 155 meters tall and comprise some 50,000 sqm of space.

Polish Airports State Enterprise (PPL), the manager of the Warsaw Chopin international airport in the Polish capital, is planning to reconstruct the old part of the facility’s main passenger terminal after this year’s UEFA Euro 2012 soccer championship.

The PPL has just announced a tender for the general contractor of the investment, whose value is estimated at z∏.300 million. Bids can be made until January 23, with construction expected to start in autumn this year and finish by the end of 2013.

The section of the terminal building which is to be modernized was originally opened in the early 1990s. PPL has now come to the conclusion that its current technical condition requires that it be thoroughly renovated.

The renovation project, whose design was prepared by the Spanish Estudio Lamela

Real estate investor and developer Rank Progress has sold plots in Miejsce Piastowe near Krosno, Podkarpackie voivodship, totaling 2.9 hectares and housing a newly built OBI DIY hypermarket, to Superhobby Market Budowlany. The value of the transaction amounted to z∏.31.8 million, with the money from the deal expected to help finance Rank Progress’ planned investments. The deal marks the fourth sale transaction signed by Rank Progress over the last 12 months. ●

GTC’s Corius finished . . . . . . . .15 PZU’s property fund . . . . . . . . .16 PPP hospital . . . . . . . . . . . . . . . .16 Wolf’s Lair lessee . . . . . . . . . . . .16 Property-related stocks . . . . . .16 InCity contractor . . . . . . . . . . . .18 New Ronson schemes . . . . . . .18 Green Office sale . . . . . . . . . . . .18

Bids for the tender to reconstruct the terminal can be made until January 23 architectural firm, envisions the architectural, technical and functional integration of the old part of the terminal with the new one, which became fully operational in March 2008.

At the same time, the investment will involve the development of a tunnel which will connect the airport terminal with a nearby new underground railway station, construction on

which is just finishing.

In autumn last year, construction was launched on a new five-star hotel at Warsaw Chopin Airport. Future investments in the vicinity of the air-

port will include the development of Chopin Airport City, a mixed-use commercial complex totaling more than 150,000 sqm of space.

Adam Zdrodowski

GTC completes Corius office building in Warsaw

COURTESY OF ADVANCED PUBLIC RELATIONS

reconstruction . . . . . . . . . . . . . .15

COURTESY OF ESTUDIO LAMELA

Construction is expected to finish by the end of 2013

Rank Progress sells plots

Warsaw airport

JANUARY 16-22, 2012, LI 17/02

Airport

Echo acquires former Mercure hotel

In this issue

•

The whole Ok´cie Business Park complex will comprise six buildings with 60,000 sqm of leasable space in total

Warsaw Stock Exchange-listed developer Globe Trade Centre (GTC) has delivered its Corius office building project in Warsaw. The structure constitutes the third phase of the company’s Ok´cie Business Park investment in the city.

The seven-storey Corius building, whose general contractor was Unibep, has provided 8,840 sqm of class-A office space, more than 80 percent of which has already been commercialized. Tenants including EGIS, Pandora A/S and YES Airways will soon move into the facility.

Located on Warsaw’s ul. 17 Stycznia, close to the capital’s international airport, the Ok´cie Business Park complex was designed by the APA Kury∏owicz & Associates architectural studio and is currently in the process of obtaining LEED certification.

The first two buildings in the park – Nothus and Zephirus – were completed in 2008 and are currently fully leased out. Their tenants include Novo Nordisk, Avon, Moeller Electric and Mitsubishi.

When completed, the whole Ok´cie Business Park

complex is expected to comprise six buildings with a total of approximately 60,000 sqm of leasable space. GTC has not yet decided when construction on the next phase of the development will launch.

Established in 1994 in Warsaw, GTC has to date developed approximately 1,000,000 sqm of space and currently owns completed commercial properties totaling some 539,000 sqm. Corius is the 19th office building completed by the developer in the Polish capital.

Adam Zdrodowski

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

PZU

Lessee needed for Hitler’s Wolf’s Lair headquarters

COURTESY OF PZU

PZU has already purchased office properties worth more than z∏.100 million

The insurer is interested in office buildings, warehouses and shopping centers PZU, Poland’s largest insurer, plans to allocate z∏.500 million to a real estate fund which it expects to generate a

net annual rate of return of 8 percent.

Currently the fund’s assets amount to some z∏.150 million, but this will ultimately rise to z∏.500 million. In total, the firm plans to invest some 3-3.5 percent of its assets – or about z∏.1.5 billion – in real estate.

SHUTTERSTOCK

PZU plans z∏.1.5 billion in real estate investments “We will invest almost exclusively in shopping centers, warehouses and office buildings. In addition to a stable cash flow, the great advantage of such investments is the indexation of rents, which protects against inflation,” PZU vice president Ryszard Trepczyƒski told Lokale Immobilia.

Mr Trepczyƒski said that PZU has received its investment certification and that the company has already acquired its first properties following the purchase of office buildings on the Polish coast in deals worth more than z∏.100 million.

“So far, our only real estate funds are those of PZU Group ... but we hope that there are also external clients willing to entrust their money to us,” Mr Trepczyƒski added.

In the third quarter of 2011 PZU made a net profit of z∏.304.5 million, significantly less than the z∏.704.3 million it made for the same period a year earlier. The decrease in profit was a result of lower investment returns.

The Wolf’s Lair is located in Warmiƒsko-Mazurskie voivodship The State Forests National Forest Holding, which on behalf of the State Treasury manages the Wolf’s Lair (Wilczy Szaniec), the former headquarters of Adolf Hitler in Gier∏o˝ near K´trzyn, Warmiƒsko-Mazurskie voivodship, is looking for a new lessee for the 250-hectare complex.

Hidden in the depths of the Mazurian forests, the bunker complex was one of Hitler’s main headquarters during WWII. The German leader stayed in the facility in

David Ingham

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

78.40

1.82

64.00

109.20

-24.40

25,530,098

2,001.56

CELTIC

16.80

-4.11

15.55

24.89

-23.25

34,068,252

572.35

DOMDEV

28.34

-3.64

23.50

50.80

-36.30

24,560,222

696.04

ECHO

3.56

4.71

3.05

5.55

-25.83

420,000,000

1,495.20

ELBUDOWA

98.80

2.92

87.00

169.90

-41.68

4,747,608

469.06

ENERGOPLD

2.04

12.71

1.81

4.10

-44.72

70,972,001

144.78

ERBUD

19.50

12.07

14.65

54.55

-64.42

12,644,169

246.56

GANT

7.59

22.03

5.85

17.60

-56.13

20,499,953

155.59

GTC

7.99

-8.89

7.91

24.60

-67.25

219,372,990

1,752.79

HBPOLSKA

0.92

13.58

0.70

2.99

-69.44

210,558,445

193.71

JWCONSTR

6.50

12.46

4.36

15.50

-58.60

54,073,280

351.48

LCCORP

0.96

9.09

0.85

1.69

-36.84

447,558,311

429.66

MARVIPOL

8.95

0.56

7.22

10.24

-11.91

36,923,400

330.46

MIRBUD

2.11

6.03

1.94

4.75

-48.66

75,000,000

158.25

MOSTALWAR

16.24

-0.37

15.40

56.35

-72.57

20,000,000

324.80

MOSTALZAB

1.41

6.02

1.07

3.00

-50.70

149,130,538

210.27

ORCOGROUP

15.18

0.20

14.00

40.00

-46.53

17,053,866

258.88

PBG

82.40

8.64

56.05

210.00

-61.13

14,295,000

1,177.91

PLAZACNTR

2.49

22.06

1.80

5.15

-43.67

297,174,515

739.96

POLAQUA

5.35

4.09

4.53

20.60

-69.86

27,500,100

147.13

POLIMEXMS

1.78

7.23

1.23

3.89

-54.94

521,154,076

927.65

POLNORD

14.44

7.20

11.03

33.59

-55.91

23,798,439

343.65

RANKPROGR

9.70

-1.52

8.60

13.60

-10.10

37,145,050

360.31

ROBYG

1.22

10.91

1.04

2.13

-32.97

257,390,000

314.02

RONSON

0.85

3.66

0.77

1.58

-41.78

272,360,000

231.51

TRAKCJA

1.05

47.89

0.65

4.00

-73.35

232,105,480

243.71

ULMA

64.35

-0.08

57.00

88.00

-22.05

5,255,632

338.20

UNIBEP

5.75

-4.01

4.47

10.00

-41.92

33,927,184

195.08

WARIMPEX

3.15

-2.48

2.95

10.89

-66.84

54,000,000

170.10

ZUE

6.10

12.96

5.07

14.54

-57.87

22,000,000

134.20

lessee, who is expected to sign a lease agreement for the next 20 years. The winning entity will be obliged to preserve the Wolf’s Lair as a tourist destination and upgrade its existing tourist infrastructure.

The Wolf’s Lair complex, which is entered into a historical properties register, is to see its hotel, restaurant and cinema modernized. The new lessee will also be expected to deliver conference space and to modernize and expand the existing parking lots.

Adam Zdrodowski

COURTESY OF INTERCOMM

Closing price on Jan 12

the years 1941-1944 and it was there that the famous attempt on his life of July 20, 1944, took place.

Some of the structures in the complex survived the war and have in recent years been a major tourist destination, attracting from 180,000 to 200,000 visitors annually.

However, the previous lease agreement has expired and the complex’s website now says the facility remains closed until further notice.

A tender procedure is currently underway to select a new

PPP hospital in ˚ywiec receives approval for design concept

Property-related stocks Security

JANUARY 16-22, 2012

The hospital will comprise 24,000 sqm of space The design concept for the first-ever public-private partnership health-care facility in Poland – a hospital on ul. Pola Lisickie in ˚ywiec – has been approved by the local county council.

“The concept design stipulates the highest architectural standards and maximum efficiency of the hospital,” George Commander, CEO of the project’s investor, InterHealth Canada, said in a statement.

In September 2011, InterHealth, a Toronto-based

health-care management firm, signed a z∏.200 million contract with ˚ywiec county for the construction of the facility.

The hospital is to provide health care for ˚ywiec county, and is to offer general acute care services and ambulatory care, prophylactic medicine, elective procedures and “cutting edge” diagnostics, InterHealth wrote.

Construction is due to start in October 2012, with work on the project expected to take 24 months.

A total of 24,000 sqm of

space will be built over four storeys. The scheme will house a fully integrated surgical ward, an accident and emergency department with a helicopter landing pad, and several outpatient clinics.

InterHealth will now prepare a design for the building itself, as well as the documentation needed to obtain a building permit. The investor says it plans to select the main contractor by September 2012, following the completion of a tender process.

Gareth Price

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

A new retail center, Centrum Handlowe Pruchnicka, is set to open on January 26 in the southeastern city of Jaros∏aw, in the Podkarpackie voivodship. The value of the investment is estimated at z∏.20 million. The mall will be sited on approximately 7,400 sqm of land.

Jaros∏aw has a population of around 40,000, but neighboring urban areas such as Przeworsk and Lubaczów will give the retail center a catchment area inhabited by close to 150,000 potential clients.

B&B WarszawaOk´cie opens A new B&B WarszawaOk´cie hotel opened in the Polish capital at the end of December following 10 months of construction. A part of the French B&B Hotels hospitality chain, the five-floor investment is located on Warsaw’s Al. Krakowska, close to the city’s international airport, and comprises 154 rooms. The B&B Hotels chain currently has two facilities in Poland – apart from the newly opened project in Warsaw it also has a scheme in Toruƒ, Kujawsko-Pomorskie voivodship. Construction is expected to launch soon on new developments in ¸ódê and Wroc∏aw. ●

JANUARY 16-22, 2012

Residential

Ronson Development to boost its Okam Capital selects residential offer this year contractor for InCity project in Warsaw

The InCity scheme will comprise 478 apartments

Unibep has been chosen to oversee construction of the scheme’s four buildings Developer Okam Capital has selected construction company Unibep as the general contractor of its InCity multi-family residential project in Warsaw.

The value of the agreement amounts to z∏.101 million.

The investment is located between ul. Siedmiogrodzka, ul. Karolkowa and ul. Gie∏dowa in the capital’s Wola district, close to the Warsaw Rising Museum and the planned Rondo Daszyƒskiego subway station. It will comprise 487 apartments whose prices start at z∏.7,500 per sqm.

The development has been designed by the Grupa 5 architectural studio and will be composed of four eight-storey buildings, one of which will also feature a taller, 17-storey section. The scheme will include a two-level underground parking lot with 471 parking spaces.

“The development of a project with almost 500 units testi-

fies to our company’s belief in both the Warsaw real estate market and the stability of the Polish economy,” Arie Koren, managing director of Okam Capital, said in a statement.

“I believe that InCity will fit perfectly into the urban texture of central Warsaw, especially since the area of our investment has been evaluated highly not only by us, but also by many other developers planning office and entertainment projects [there],” Mr Koren added.

The InCity development has held a valid building permit since 2009. Construction on the scheme will launch next month with the first phase of the investment scheduled to be completed in the final quarter of 2013.

Okam Capital was established in 2010 as a capital group following the joint venture of Okam and Aurec Capital. In the near future, the company plans developments including a single-family house complex in Konstancin near Warsaw and a business center in downtown Adam Zdrodowski ¸ódê.

Warsaw Stock Exchange-listed developer Ronson Development is planning to launch up to 14 new housing projects across Poland this year in a bid to grow the number of its units on offer from an average of 600 in 2011 to approximately 1,000 in 2012.

The new schemes, which will comprise some 1,350 apartments in total will be located in Warsaw, Poznaƒ, Wroc∏aw and Szczecin and will include both consecutive phases of the company’s ongoing investments and completely new developments which are now in the preparatory phase.

In Warsaw, the latter category will comprise Espresso in Wola, Magellan in Mokotów and Tamka in the capital’s central district. In Poznaƒ, Ronson will build projects called Newton and Eclipse while a new investment called Matisse has been planned in Wroc∏aw.

In 2011, Ronson sold 360

apartments, which was almost 34 percent more than the previous year, when 269 units were offloaded. Keys were turned over to the new owners of 117 Ronson homes.

“Last year was the best one in terms of sales in our 13-year history, which we owe to the development of our offer and

very proactive sales activities,” Andrzej Gutowski, sales and marketing director at Ronson Development, said in a statement.

He added that the company’s main goal for this year is the achievement of a sales level of more than 500 apartments.

Adam Zdrodowski

COURTESY OF NBS COMMUNICATIONS

Jaros∏aw mall to open

COURTESY OF KOSTRZEWA PR

18

Espresso is one of the new projects that Ronson Development will launch in Warsaw

Azora Europa fund buys two office buildings in Kraków The Azora Europa investment fund has acquired two modern office buildings in Kraków’s Green Office complex from developer Buma Group. The value of the transaction, which was brokered by Jones Lang LaSalle, has not been revealed.

The deal involves the sale of Building A and Building B in the complex, which were completed in October and May 2011, respectively. The structures comprise a total of 11,300 sqm of space and are occupied by Motorola Solutions Polska.

The whole Green Office complex, which is located on Kraków’s ul. Czerwone Maki, is composed of three fourstorey class-A office buildings.

The total leasable area of the development amounts to 21,300 sqm.

The investment was designed by the Kraków-based UCEES architectural studio.

The third, under-construction building in the complex is now being commercialized and is expected to open for business later this year.

Part of Azora International

Group, the Azora Europa fund was established in 2007 and manages €700 million of capital. Its main shareholders are Spanish savings banks, pension funds and private investors.

Azora Europa is active in the CEE and SEE regions and currently owns a portfolio of four office buildings in Warsaw, Kraków and Prague, worth a total of €110 million.

The fund is also the investor of two residential projects in the Polish capital and plans new acquisitions this year.

Adam Zdrodowski

MARKETS

JANUARY 16-22, 2012

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

S&P500

FTSE100

DAX

NIKKEI225

12,471.02 (Jan 12 close)

2,724.70 (Jan 12 close)

1,295.50 (Jan 12 close)

5,662.42 (Jan 12 close)

6,179.21 (Jan 12 close)

0.45% (for the week)

2.05% (for the week)

1.13% (for the week)

0.68% (for the week)

1.37% (for the week)

Choppy waters

8,385.59 (Jan 12 close) -1.21% (for the week)

CHANGE: 0.59%

CHANGE: 2.87%

CHANGE: 1.44%

CHANGE: -0.66%

CHANGE: 1.71%

CHANGE: -2.04%

(year to Jan 12)

(year to Jan 12)

(year to Jan 12)

(year to Jan 12)

(year to Jan 12)

(year to Jan 12)

52-week high: 12,876.00

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.77

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 10,404.49

52-week low: 2,298.89

52-week low: 1.074.77

52-week low: 4,791.01

52-week low: 4,965.80

52-week low: 8,135.79

Andrew Nawrocki, WBJ market analyst

38,062.87 (January 12 close)

WIG20

2,166.99 (January 12 close)

12.01

11.01

10.01

09.01

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

12.01

11.01

10.01

09.01

05.01

04.01

03.01

02.01

30.12

2,000

29.12

36,000

28.12

2,060

27.12

36,600

23.12

2,120

22.12

37,200

21.12

2,180

20.12

37,800

19.12

2,240

16.12

38,400

15.12

2,300

14.12

39,000

22.12

52-week low: 2,089.84

21.12

Change year to January 12: -1.24%

20.12

52-week low: 36,549.47

19.12

52-week high: 2,932.62

Change year to January 12: -0.67%

16.12

Change for the week: 0.44%

15.12

52-week high: 50,371.74

14.12

Change for the week: 0.86%

Top 5 HERMAN TRAKCJA NTTSYSTEM WISTIL EKOEXPORT

Closing 2.35 1.05 0.82 6.70 9.95

% change (week) 52-week high 70.29 2.35 47.89 4.05 38.98 1.13 24.07 25.00 24.06 10.26

52-week low 0.45 0.63 0.41 5.33 4.28

Top 5 PBG KGHM PGE TAURONPE PZU

Closing 82.40 123.60 1.78 13.20 4.07

% change (week) 8.64 8.42 7.23 3.94 3.56

52-week high 211.80 200.30 25.07 6.81 398.60

52-week low 53.70 102.40 15.98 4.65 283.10

Bottom 5 UNICREDIT PWRMEDIA NOVAKBM ALTERCO INTAKUS

Closing 12.75 0.75 13.00 37.01 0.95

% change (week) -42.05 -17.58 -13.33 -12.92 -12.04

52-week low 2.89 0.62 10.53 29.20 0.61

Bottom 5 GETIN GTC PKOBP PGE TVN

Closing 2.31 7.99 31.16 20.53 9.94

% change (week) -11.15 -8.89 -3.02 -2.89 -2.36

52-week high 15.29 24.74 46.66 25.07 18.53

52-week low 2.29 7.86 27.95 15.98 8.90

52-week high 30.70 1.26 34.70 47.98 1.64

Currency report

Optimism evaporates

Other indices sWIG80

8,741.09 (January 12 close) 52-week high: 12,932.00

NewConnect

41.61 (January 12 close)

WIG-Banki

12.01

11.01

10.01

5,303.60 (January 12 close)

SOURCE: WSE

12.01

11.01

10.01

09.01

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

12.01

11.01

10.01

09.01

05.01

04.01

03.01

02.01

30.12

29.12

5,200

28.12

39.0

27.12

5,280

23.12

39.6

22.12

5,360

21.12

40.2

20.12

5,440

19.12

40.8

16.12

5,520

15.12

41.4

14.12

5,600

22.12

52-week low: 4,944.19

21.12

Change year to January 12: -4.32%

20.12

52-week low: 40.16

19.12

52-week high: 7,387.49

Change year to January 12: -0.80%

16.12

Change for the week: -1.18%

15.12

52-week high: 62.11

14.12

Change for the week: 0.64%

42.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

0 09.01

05.01

30.12

29.12

28.12

27.12

23.12

22.12

21.12

20.12

19.12

16.12

15.12

14.12

12.01

11.01

10.01

09.01

05.01

04.01

03.01

02.01

30.12

29.12

8,100

28.12

2,000

27.12

8,240

23.12

2,060

22.12

8,380

21.12

8,520

2,120

20.12

2,180

19.12

8,660

16.12

2,240

15.12

8,800

14.12

2,300

0

52-week low: 8,218.71 0

Change year to January 12: 1.59%

04.01

52-week low: 2,076.52

0

Change year to January 12: 0.49%

03.01

Change for the week: 1.62%

3

52-week high: 2,987.72

0

2,200.93 (January 12 close)

02.01

mWIG40 Change for the week: 1.91%

credit rating would not be lowered in the very near future, as had been previously planned. The WIG finished the day up 0.73 percent, led by strong gains by PKN Orlen and KGHM. On Wednesday, January 11, the WIG once again dipped in to the red, shedding a quarter of a percent after poor growth was announced for the euro zone in Q4 2011. On Thursday, January 12, stocks experienced a mini-rally partially due to an announcement by the Ministry of Finance that proposed taxes on copper extraction would be reduced.

Shares of KGHM – Poland’s largest copper producer – soared, closing nearly 8 percent higher.

On Friday, however, Polish stocks lost steam, with the WIG closing 0.19 percent down and the blue-chip WIG20 losing 0.03 percent. ●

Little seemed to have changed as the first full week of 2012 came to a close. Stock markets throughout Europe – including Poland’s WIG – remain at the mercy of policy makers and ratings agencies.

For the WIG, the week beginning January 9 got off to a poor start, with the Polish bourse closing lower than its counterparts. In part this was due to the WIG “catching up” after a shorter week the week before, though poor sentiment dominated after French President Nicolas Sarkozy and German Chancellor Angela Merkel announced that Greece would receive no more aid until it agrees to a debt swap with banks. The WIG fell 1.05 percent.

On Tuesday, January 10, stocks headed higher after ratings agency Fitch announced that France’s

Major indices WIG

19

Currencies kicked off last week by rebounding after the declines of the previous week. Volatility was modest and market movements were not big. Investors got more action on Thursday, after a successful auction of treasury bills in Spain and Italy drove bond yields down in those countries.

The ECB left interest rates unchanged at 1 percent last Thursday, but this time the markets did not react much, thus confirming that three-year liquidity loans are slowly being used by banks to lend to the real economy, rather than being deposited immediately.

The EUR/USD climbed to its weekly high of 1.2875, accompanied by appreciating emerging markets currencies.

Optimism was back and

it seemed the week would end on a positive note. Friday, however, brought a sudden turn of events, with rumors suggesting that ratings agency Standard & Poor’s would “imminently” downgrade several eurozone countries. Currencies turned around dramatically, with the EUR/USD tumbling to $1.27. Later that day, S&P confirmed that France had lost its top AAA credit rating.

Surprisingly, the z∏oty did not follow the EUR/USD this past week as it usually does. The local currency kept appreciating throughout the week with the EUR/PLN reaching z∏.4.41 (z∏.4.48 at the start of the week) and the USD/PLN going from z∏.3.52 to z∏.3.48 (weekly low at z∏.3.41). ●

currency rates 4.4752 13.01

4.5397 12.01

SOURCE: NBP

4.5659

4.5396 11.01

4.5727 09.01

10.01

4.5679 4

05.01

0.1084 13.01

0.1104

0.1104

PLN-100JPY

5

12.01

11.01

0.1106 10.01

09.01

0.1099 05.01

3.6756

3.6376 13.01

0.10

0.1103

PLN-RUB

0.12

12.01

3.6807 11.01

3.7015 10.01

3.6940 09.01

3.7037

5.2711

3.5

05.01

12.01

11.01

10.01

09.01

13.01

5.3576

5.4027

5.4328

5.4616 05.01

5

PLN-CHF

4.0

3.4323 13.01

3.4945 12.01

3.4919 11.01

3.5083 10.01

3.5081

3.5150 09.01

3.0

05.01

4.4040 13.01

4.4532

3.5

PLN-GBP

6

5.4269

PLN-USD

4.0

12.01

4.4645 11.01

4.5135

4.4883 10.01

09.01

05.01

4

4.4902

PLN-EUR

5

20

THE LIST

www.wbj.pl

JANUARY 16-22, 2012

Corporate Services

Major Law Firms in Poland Ranked by total number of board certified lawyers Number of lawyers

Total number of board-certified lawyers / Total number of lawyers

Licensed advocates / Licensed legal advisors

Foreign / Tax advisors

Unlicensed lawyers (Master of Law degree) / Training for license

Domaƒski Zakrzewski Palinka Sp.k.

Rondo ONZ 1, 00-124 Warsaw 1 22 557-7600/22 557-7601 dzp@dzp.pl www.dzp.pl

79 141

15 58

3 6

Salans D. Oleszczuk Kancelaria Prawnicza Sp.k.

Rondo ONZ 1, 00-124 Warsaw 2 22 242-5252/22 242-5242 warsaw@salans.com www.salans.com

77 157

22 43

CMS Cameron McKenna Dariusz Greszta Sp.k. ul. Emilii Plater 53, 00-113 Warsaw 3 22 520-5555/22 520-5556 warsaw@cms-cmck.com www.cms-cmck.com

72 132

Wardyƒski i Wspólnicy Sp.k.

Al. Ujazdowskie 10, 00-478 Warsaw 4 22 437-8200/22 437-8201 warsaw@wardynski.com.pl www.wardynski.com.pl

Rank

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

www.bookoflists.pl Top local executive / Title

Main specialization / Other specializations

Global affilation

Total employees / Year founded

23 37

Commercial and corporate law Mergers and acquisitions; trial law; PPP; infrastructure

WND

WND 1993

4 8

23 57

All specializations WND

Salans

270 1991

Tomasz Dàbrowski

20 43

6 3

24 33

Commercial and corporate law Energy law; trial law; antimonopoly and competition law

CMS Cameron McKenna and CMS

240 1989

Andrew Koz∏owski

67 136

33 44

1 7

19 31

Tax advisory for business entities Trial law; mergers and aquisitions; commercial and corporate law

LEX MUNDI

249 1992

So∏tysiƒski, Kawecki & Szl´zak Sp.k. ul. Wawelska 15B, 02-034 Warsaw 5 22 608-7000/22 608-7070 office@skslegal.pl www.skslegal.pl

65 102

11 51

3 4

5 32

Commercial and corporate law Mergers and acquisitions; intellectual and industrial property law; trademark protection; arbitrage; trial law

Global Advertising Lawyers Alliance; EuroITCounsel; International Trademark Association; European Employment Lawyers Association; Attorney’s Club

205 1991

Rudolf Ostrihansky

Wierciƒski, Kwieciƒski, Baehr Sp.k. ul. Polna 11, 00-633 Warsaw 6 22 201-0000/22 201-0099 biuro@wkb.com.pl www.wkb.com.pl

50 50

9 13

1

16 12

Mergers and acquisitions Energy law; public orders; antimonopoly and competition law; intellectual and industrial property law

TagLaw; Multilaw; The Association of European Lawyers; The International Network of Boutique Law Firms; Association Europea de Abogados

70 2004

Andrzej Wierciƒski

White & Case W. Dani∏owicz, W. Jurcewicz i Wspólnicy - Kancelaria Prawna Sp.k.

7 ul. Marsza∏kowska 142, 00-061 Warsaw 22 505-0100/22 505-0400 warsaw@whitecase.com, www.whitecase.com

44 82

12 25

4 4

9 30

Mergers and acquisitions Securities and capital markets; banking and finance; trial law

White & Case LLP

133 1991

Jan Matejcek

Wierzbowski Eversheds Sp.k. ul. Jasna 14/16A, 00-041 Warsaw 7 22 505-0700/22 505-0701 kancelaria@eversheds.pl www.eversheds.pl

44 67

21 20

2 3

8 15

TMT Commercial and corporate law; antimonopoly and competition law; trial law

Eversheds International Limited

105 1998

Krzysztof Wierzbowski

T. Studnicki, K. P∏eszka, Z. åwiàkalski, J. Górski Sp.k. ul. Jab∏onowskich 8, 31-114 Kraków 9 12 427-2424/12 427-2333 spcg@spcg.pl www.spcg.pl

40 69

15 25

5

29 23

Commercial and corporate law Trial law; real estate; antimonopoly and competition law

WND

69 1988

Tomasz GizbertStudnicki

Grynhoff, Woêny, Wspólnicy Sp.k. ul. Pi´kna 18, 00-549 Warsaw 10 22 212-0000/22 212-0001 warszawa@gwwl.pl www.gww.pl

38 75

28

10

12 25

TMT Energy law; real estate; mergers and aquisitions

-

92 1996

Stanis∏aw Grynhoff; Piotr Woêny

Koksztys Kancelaria Prawa Gospodarczego Sp.k.

Al. Armii Krajowej 61, 50-541 Wroc∏aw 11 71 335-1450/71 335-1450 kancelaria@koksztys.pl www.koksztys.pl

37 88

13 20

2 2

33 18

Commercial and corporate law Public orders; trial law; tax law

-

225 1999

Amadeusz Krawczyk

35 65

8 24

3 1

30 23

Commercial and corporate law Banking and finance; trial law; real estate

Clifford Chance

134 1992

Grzegorz Namiotkiewicz

Drzewiecki, Tomaszek & Wspólnicy Sp.k. ul. Belwederska 23, 00-761 Warsaw 12 22 840-9500/22 840-9510 dt@dt.com.pl www.dt.com.pl

35 70

18 17

-

19 18

Real estate; investment process Intellectual and industrial property law; mergers and acquisitions; trial law

Interlex; Terra Lex

83 1992

Zbigniew Drzewiecki; Andrzej Tomaszek

Dewey & LeBoeuf Grzesiak Sp.k. ul. Ksià˝´ca 4, 00-498 Warsaw 14 22 690-6100/22 690-6222 woffice@dl.com www.dl.com

34 60

7 27

2 5

13 12

Mergers and acquisitions Securities and capital markets; tax law; real estate

Dewey & LaBoeuf

116 1991

Jaros∏aw Grzesiak

Weil, Gotshal & Manges – Pawe∏ Rymarz Sp.k. ul. Emilii Plater 53, 00-113 Warsaw 14 22 520-4000/22 520-4001 pawel.rymarz@weil.com www.weil.com

34 66

6 24

5 2

12 20

Mergers and acquisitions Securities and capital markets; trial law; venture capital and private equity

Weil, Gotshal & Manges

127 1991

Pawe∏ Rymarz

Hogan (Warsaw) LLP Sp.p. Oddzia∏ w Polsce ul. Nowogrodzka 50, 00-695 Warsaw 16 22 529-2900/22 529-2901 hoganlovells.warsaw@hoganlovells.com www.hoganlovells.com

33 68

8 25

1 3

36 24

Commercial and corporate law Real estate; banking and financial institutions; tax law

Hogan Lovells

122 1991

Beata Balas-Noszczyk

Allen & Overy, A. P´dzich Sp.k.

Rondo ONZ 1, 00-124 Warsaw 17 22 820-6100/22 820-6199 warsaw@allenovery.com www.allenovery.com

32 64

4 28

1 1

30 18

Banking and finance Mergers and acquisitions; capital markets; commercial and coroprate law

Allen & Overy

113 1991

Arkadiusz P´dzich

BSJP Brockhuis Schnell Jurczak Prusak Sp.k.

Al. Armii Ludowej 26, 00-609 Warsaw 18 22 579-8900/22 579-8901 info@bsjp.pl www.bsjp.pl

30 53

10 16

4 2

23 10

Real estate Energy and environment; banking and finance; life sciences and health care

Taylor Wessing

75 2001

Christian Schnnell

K&L Gates Jamka Sp.k.

Al. Jana Paw∏a II 25, 00-854 Warsaw 19 22 653-4200/22 653-4250 warsawoffice@hhlaw.com www.hhlaw.com

28 43

11 17

1 1

3 9

Commercial and corporate law WND

K&L Gates

70 2010

Maciej Jamka

Clifford Chance, Janicka, Kru˝ewski, Namiotkiewicz i Wspólnicy Sp.k.

12 ul. Lwowska 19, 00-660 Warsaw

22 627-1177/22 627-1466 warsawinfo@cliffordchance.com, www.cliffordchance.com

Krzysztof A. Zakrzewski Managing Partner

Managing Partner

Managing Partner

Tomasz Wardyƒski; Stefan Jacyno Chairman Partner; Managing Partner

Managing Partner

Managing Partner

Managing Partner

Managing Partner

Senior Partner

Unlimited partners

Director

Managing Partner

Managing Partners

Managing Partner

Managing Partner

Managing Partner

Managing Partner

Managing Partner

Managing Partner

THE LIST

Rank

JANUARY 16-22, 2012

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

Chajec, Don-Siemion & ˚yto Sp.k. ul. Lwowska 19, 00-660 Warsaw 20 22 492-4000/22 370-0708 kancelaria@cdz.com.pl www.cdz.com.pl Kancelaria Radców Prawnych i Adwokatów Nowakowski i Wspólnicy Sp.k.

20 Pl. Mickiewicza 18, 13-200 Dzia∏dowo 23 697-2546/23 697-2546 dzialdowo@knw.pl, www.knw.pl Miller, Canfield, W. Babicki, A. Che∏chowski i Wspólnicy Sp.k.

20 ul. Nowogrodzka 11, 00-513 Warsaw 22 447-4300/22 447-4301 kontakt@pl.millercanfield.com, www.millercanfield.pl Chadbourne & Parke, Radzikowski, Szubielska i Wspólnicy Sp.k.

23 ul. Emilii Plater 53, 00-113 Warsaw

22 520-5000/22 520-5001 warsaw@chadbourne.com, www.chadbourne.com 24

D. Dobkowski Sp.k. ul. Ch∏odna 51, 00-867 Warsaw 22 528-1300/22 528-1309 legal@kpmg.pl, www.kpmg.pl/ddobkowski

Âlàzak, Zapiór i Wspólnicy Kancelaria Adwokatów i Radców Prawnych Sp.k.

24 Al. Korfantego 141, 40-154 Katowice 32 783-8800/32 783-8899 kontakt@kancelaria-szip.pl, www.kancelaria-szip.pl

www.wbj.pl

21

Number of lawyers

Total number of board-certified lawyers / Total number of lawyers

Licensed advocates / Licensed legal advisors

Foreign / Tax advisors

Unlicensed lawyers (Master of Law degree) / Training for license

27 35

2 24

1 -

27 WND

4 23

27 50

Main specialization / Other specializations

Global affilation

Total employees / Year founded

Top local executive / Title

1 7

Mergers and acquisitions Capital markets; private equity; real estate

INTERLAW

55 2003

Andrzej Chajec

4

4 15

Transportation law Commercial and corporate law; pharmaceutical law; public orders

-

WND 1998

Cezary Józef Nowakowski

6 16

4 1

23 11

Real estate TMT; commercial and corporate law; trial law

Miller, Canfield, Paddock and Stone, P.L.C.; Employment Law Alliance; The Force Alliance

66 1991

Wojciech Babicki

26 33

5 21

2

2 5

Mergers and acquisitions; restructuring Energy law; tax law; banking and finance

Chadbourne & Parke

WND 1990

25 33

1 24

-

8 7

Commercial and corporate law Banking and finance; real estate; mergers and acquisitions

WND

45 1996

Dariusz Dobkowski

25 48

10 15

-

8 15

Energy law Public orders; copyright law; intellectual and industrial property law; local government law

Consortio Lex

56 2002

Krystian Âlàzak

Managing Partner

Chief Partner

Managing Partner

W∏odzimierz Radzikowski Managing Partner

Managing Partner

Managing Partner

24

Kochaƒski Zi´ba Ràpa∏a i Partnerzy Sp.j.

Pl. Pi∏sudskiego 1, 00-078 Warsaw 22 326-9600/22 326-9601 biuro@kochanski.pl, www.kochanski.pl

24 45

10 8

1 3

5 16

Copyright law; intellectual and industrial property law; International Lawyers Network; new technologies and e-commerce Mackrell International Bar Association; Polski Zwiàzek Mergers and acquisitions; antimonopoly and Pracodawców Prawniczych competition law; litigation and arbitration

70 1998

Piotr Kochaƒski

24

LeÊnodorski, Âlusarek i Wspólnicy Sp.k. ul. ¸owicka 62, 02-531 Warsaw 22 646-4210/22 646-2877 kancelaria@lsw.com.pl, www.lsw.com.pl

24 46

7 17

1 1

6 15

Mergers and acquisitions Real estate; copyright law; intellectual and industrial property law; tax law

60 1998

Bogus∏aw LeÊnodorski; Maciej Âlusarek

28

Kancelaria Prawna J. Cha∏as i Wspólnicy Sp.k. ul. Sapie˝yƒska 10A, 00-215 Warsaw 22 536-0050/22 536-0051 chwp@chwp.pl, www.chwp.pl

23 35

1 19

1 2

6 6

Commercial and corporate law; mergers and acquisitions Zumpano; Patricios and Winker Public orders; copyright law; intellectual and industrial property law; labor law

74 1995

Jaros∏aw Cha∏as;

29

TGC Ordowska Kancelaria Prawnicza Sp.k. ul. Hrubieszowska 2, 01-209 Warsaw 22 295-3300/22 295-3301 tgc@tgc.eu, www.tgc.eu

22 30

4 11

3 4

4 4

Commercial and corporate law Trial law; labor law; real estate

ALFA International; SRA, LCIA

48 1991

Nicholas Fielding; Beata Ordowska

22 50

6 13

2 3

6 13

Mergers and acquisitions Banking and finance; energy law; real estate

Gide Loyrette Nouel

80 1990

Dariusz Tokarczuk

21 36

4 17

4 3

15 15

Commercial and corporate law Real estate; energy law; public orders

Beiten Burkhardt Rechtsanwalte

34 1999

Peter Daszkowski

43 1997

Sylwester Cetera, Ma∏gorzata W´grzynWysocka; Agnieszka Ko∏aczkowska, ¸ukasz Dziewoƒski, Maciej Domaga∏a

Tokarczuk, J´drzejczyk i Wspólnicy Kancelaria Prawna GLN Spk. 29 Pl. Pi∏sudskiego 1, 00-078 Warsaw 22 344-0000/22 344-0001 gln.warsaw@gide.com, www.gide.com Beiten Burkhardt P. Daszkowski Sp.k. ul. Mokotowska 49, 00-542 Warsaw 31 22 583-7100/22 583-7109 bblaw-warschau@bblaw.com www.bblaw.com CWW S. Cetera, M. W´grzyn-Wysocka i Wspólnicy Kancelaria Radców Prawnych i Adwokatów Sp.k.

31 ul. W∏odkowica 10/11, 50-072 Wroc∏aw 71 780-7600/71 780-7601 kancelaria@cww.pl, www.cww.pl

21 37

3 18

3

4 12

Energy law Trial law; real estate; mergers and acquisitions

World Link for Law

WND

Managing Partner

Partners

Managing Partner

Managing Partner; Partner

Managing Partner

Unlimited Partner

Limited Partners

GESSEL, KOZIOROWSKI Sp.k. ul. Sienna 39, 00-121 Warsaw 22 318-6901/22 318-6931 mail@gessel.pl, www.gessel.pl

21 34

4 16

1 -

12 9

Mergers and acquisitions Venture capital and private equity; securities and capital markets; commercial and corporate law

Forystek & Partnerzy Adwokaci i Radcowie Prawni ul. Armii Krajowej 16, 30-150 Kraków 34 12 622-4511/12 622-4510 kancelaria@forystek.pl www.forystek.pl

20 32

13 7

2

3 9

Real estate Venture capital and private equity; capital markets; mergers and acquisitions; commercial and corporate law; litigation and arbitration

WND

Kancelaria Prawna Piszcz, Norek i Wspólnicy Sp.k. ul. Towarowa 35, 61-896 Poznaƒ 61 859-4444/61 859-4440 kancelaria@piszcz.pl, www.piszcz.pl

19 33

1 17

1

3 11

Mergers and acquisitions Commercial and corporate law; real estate; energy law

Legal NetLink Alliance

AVAL-CONSULT Kancelaria Radców Prawnych i Adwokatów 36 ul. Kartuska 5, 80-103 Gdaƒsk 58 301-4349/58 346-2716 biuro@avalconsult.pl, www.avalconsult.pl

18 38

4 16

-

10 10

WND

LTA Doradztwo Prawne Dopiera∏a, Oliwa i Wspólnicy Sp.k.

36 ul. Ogrodowa 58 , 00-876 Warsaw 22 621-5656/22 621-7377 kancelaria@lta.pl, www.lta.pl

18 21

4 4

3

3 8

Trial law Commercial and corporate law; copyright law; intelectual and industrial property law; real estate

31

35

36

Siwek Gaczyƒski & Partners Sp.k. ul. Bonifraterska 17, 00-203 Warsaw 22 246-0800/22 246-0801 sgp@kancelaria.sgp.pl, www.kancelaria.sgp.pl Deloitte Legal, Pasternak i Wspólnicy Kancelaria Prawnicza Sp.k.

39 Al. Jana Paw∏a II 19, 00-854 Warsaw

22 511-0811/22 511-0813 dpoland@deloitteCE.com, www.deloitte.com/pl/kancelaria Trusiewicz Siwko Kancelaria Prawna Radców Prawnych Sp.p.

39 ul. Domaniewska 50A, 02-672 Warsaw 22 208-1300/22 208-1301 sekretariat@ts-kancelaria.pl, www.ts-kancelaria.pl

55 1993

Beata GesselKalinowska vel Kalisz

36 1997

Józef Forystek; Marek Forystek

33 1999

Marcin Piszcz; Hubert Norek

-

41 1989

Halina Ostrowska

-

26 2006

Filip Dopiera∏a; Robert Oliwa; Cezary Kubacki; Milada Czajkowska; Ma∏gorzata Gajewska

-

Managing Partner

Managing Partners

Managing Partners

Partners

18 25

7 11

1

2 4

Commercial and corporate law Public orders; TMT; energy law

-

29 1998

Andrzej Siwek

17 32

4 13

-

15 15

Mergers and acquisitions; commercial and corporate law; real estate Labor law; social insurance; antimonopoly and competition law; intelectual property law

Deloitte

36 2007

Robert Pasternak

17 27

8 9

-

4 6

Real estate Public orders; venture capital and private equity; mergers and acquisitions

-

33 2006

Rafa∏ Trusiewicz; Micha∏ Siwko

Notes: NA = Not Applicable, WND = Would Not Disclose. Research for The List was conducted in July/August 2011. Number of employees and ownership structure are as of July 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Managing Partner

Partner

Managing Partners

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

22

LIFESTYLE

www.wbj.pl

JANUARY 16-22, 2012

Concert

The road to Rea latest offering, “Santo Sprito Blues,” which reached 33 in the Polish charts, is based on these original blues traditions.

Tickets for the event are priced from z∏.176. ●

OURTESY OF LAMB/MYSPACE.COM

For more information log on to kongresowa.pl

Lamb Concert

Legendary trip-hop duo Lamb February 7 Klub Palladium ul. Z∏ota 9 Warsaw

Chris Rea

SHUTTERSTOCK

In a career spanning more than 30 years, gravel-voiced guitar maestro Chris Rea has achieved worldwide fame with numerous hits, including “On

the Beach,” “Julia” and “The Road to Hell.” He has currently sold more than 30 million albums, with both 1989’s “The Road to Hell” and 1991’s “Auberge” topping the UK album charts. But since suffering a life-threatening illness in 2001, Chris Rea vowed to return to his blues roots. His

Formed in Manchester in the mid 1990s, Lamb was part of the UK’s original trip-hop scene, which comprised other seminal groups, including Por-

tishead and Massive Attack.

The duo, consisting of producer Andy Barlow and singersongwriter Lou Rhodes, released four studio albums before separating in 2004.

Since reforming in 2009, the group has recorded a new album, “5,” and toured the globe. Fans can expect to hear

the group’s most famous songs, “Górecki” and “Gabriel,” as well as tunes from their latest offering, when they come to Warsaw this February. Tickets for the event are priced at z∏.120.

DI

For more information log on to palladium.art.pl

Ballet

A dance through history “And the Rain Will Pass …”

January 28, 29 National Theater Pl. Teatralny Warsaw Named after a line taken from the poem “Rain” by Krzysztof Kamil Baczyƒski, this ballet is

COURTESY OF TEATR WIELKI

Chris Rea February 5 PKiN, Sala Kongresowa Plac Defilad 1 Warsaw

based around the theme of war, and more specifically the Warsaw Uprising. Choreographed by Krzystof Pastor and accompanied by the music of Henryk Miko∏aj Górecki, this ballet was previously described as “a reckoning with

the demons of Poland’s most recent history” and the “God and fatherland vision of historical politics,” by Tygodnik Powszechny DI

For more information log on to teatrwielki.pl

“And the Rain Will Pass ...”

LAST WORD

JANUARY 16-22, 2012

www.wbj.pl

23

Tech Eye

that you’ll read about the biggest reveals on CNN, Engadget or one of those other “respectable” news sites.

That’s why Techeye is focusing on some of the small-but-saucy gadgets unveiled at CES. CUS That certainly LARFO SY OF SO COURTE characterizes eyewear-maker Vuzix’s Smart G l a s s e s (vuzix.com).

Think of these as a personal heads-up display, incorporating “input and output hologram structures” on the lens surface, a n d thereby

adding virtual information to the everyday world.

Augmented reality, in other words.

Don’t expect to see your yuppy neighbor COURTESY OF SOUNDMATTERS wearing Smart Glasses any time (like Techeye) and whose Kindle is the soon though. Vuzix isn’t talking price right size (unlike Techeye). Also, the yet, the release date is “fall 2012” solar panel may not last long in your and the firm is targeting the com- gym bag / brief case / sporran, and mercial and industrial sectors to having to leave your e-reader in start. Still, consumer sales will follow direct sunlight for hours on end soon enough, and then we’ll finally seems like an iffy prospect.

But whatever. The SolarKindle realize the dream – visions of synchronized belly dancers, whole can charge your Kindle and it gives squadrons of them gyrating knee- you the means to read without disdeep in velvety béarnaise sauce, turbing others. You can get one superimposed over the banalities of today, provided you’ve got $80 and a lust for (solar-powered) light. everyday life …

Then there’s the FoxLo, “the Oops, Techeye got a bit lost in our world’s first palm-sized hi-fi subhappy place there. Sorry about that. from Soundmatters Another item which deserves a bit woofer,” of press is the SolarKindle, a solar- (soundmatters.com). Developed by charged lighted cover from SolarFo- a former NASA scientist who precus (solarmio.com). Ok, “deserves” is sumably loves him some low end, a stretch. The SolarKindle is only the FoxLo hits the market this useful for people who own a Kindle spring at $149.

And finally, take a gander at the iShower water-resistant shower speaker, brought to you by the good people at iDevices Consulting. The iShower is a Bluetoothenabled device which plays music directly from Apple gear (iPhones, iPods et al.) or Android devices. Three AAA batteries gets you 15 hours of playback, and there’s even an optional anti-fog shower mirror.

A word of advice: don’t drop the iShower in the shower (whether you’re in prison or not).

It’s kind of like dropping the soap, except it costs upwards of $99.99 to replace. ●

Ever dreamed of a reality drizzled with belly dancers and béarnaise sauce? Let us know: techeye.wbj@gmail.com

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

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

Galeria 022, DAP, Lufcik Królikarnia National ul. Mazowiecka 11a Gallery www.owzpap.pl ul. Pu∏awska 113a www.krolikarnia.mnw.art.

Galeria 65 pl ul. Bema 65 www.galeria65.com Le Guern Gallery ul. Widok 8, Galeria Appendix 2 www.leguern.pl (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglo sci.art.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl

National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl

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

Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

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

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

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

COURTESY OF IDEVICES

Has Techeye ever mentioned the time we almost froze to death on the roof of the local Sigma Tau Delta sorority house? No? We were attempting an unprecedented midwinter abseiling perv, you see.

Equipped with a sackful of climbing equipment and a trench coat, we had successfully scaled the icy building’s treacherous north face when suddenly a …

Wait … what are we doing?

Wasting words, that’s what. The 2012 Consumer Electronics Show ended last week, yes, but there’s plenty to write about. Indeed, CES introduced such a cerebrumdiscombobulating variety of new gadgets that we could probably fill several rolls of toilet paper with news of mobile phones alone.

Not that we’d do that, of course – it tends to confuse WBJ’s scarcely continent copyediting monkeys.

Anyway, the chances are

COURTESY OF VUZIX

The small-but-saucy gadgets of CES 2012