WBJ #50-51 2011-2012

A review of the biggest changes to Polish law in a special supplement

How long can Poland’s booming retail industry continue to power forward?

From the Arab Spring to the euro crisis, WBJ looks back on 2011 10-11

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WWW.WBJ.PL

15-18

VOLUME 17, NUMBER 50-51 • DEC 19, 2011 – JAN 8, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Tickled with tech

Since 1994 . Poland’s only business weekly in English

COURTESY OF ALDEBARAN ROBOTICS

Stormy seas

Techeye ends the year with gadgets you may want but can’t get your hands on … yet 31

Will Poland’s economy sink or swim in the tempest that lies ahead in 2012?

Much depends on Germany 12-13

REAL ESTATE

COURTESY OF KOSTRZEWA PR

Lokale Immobilia

• What sectors will prosper in 2012?

• Karolkowa construction starts • Hochtief’s new Warsaw building 15-18

In this issue

¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Labor Market in Focus . . . . . . . . . .7 Opinion & Analysis . . . . . . . . . . . . .8 Year in Review . . . . . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . . .12-13 Law in Poland . . . . . . . . . . . . .15-18 Lokale Immobilia . . . . . . . . . . .19-23 Interview . . . . . . . . . . . . . . . . . . . .24 The List . . . . . . . . . . . . . . . . . . .26-27 Markets . . . . . . . . . . . . . . . . . . . . . .28 Lifestyle . . . . . . . . . . . . . . . . . . . . .30 Last Word . . . . . . . . . . . . . . . . . . . .31

Europe’s crossroads

Sikorski survives

Poland’s prime minister laid out some stark choices for the EU in a speech in Strasbourg

The foreign minister brushed off a no-confidence vote, then defended the government’s EU policy

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NEWS

www.wbj.pl

IN THE SPOTLIGHT

Numbers in the News

The depreciating z∏oty

z∏.43 billion is the total amount of Poland’s revenues from privatization in the last four years.

Leader of opposition party Law and Justice (PiS) Jaros∏aw Kaczyƒski led thousands of people in a march through Warsaw on December 13, the 30th anniversary of the imposition of martial law in Poland, with the aim of highlighting displeasure at the government’s recent support for deeper integration among European states. Mr Kaczyƒski said in a speech that PM Donald Tusk’s support for new EU measures “undermines our status as a sovereign state, our position, our dignity. … We can’t agree to this. We can’t, and we won’t.”

In mid-December, Poland’s new National Stadium in Warsaw was handed over to its operators after being passed fit for use by the District Inspectorate of Building Control.

Poland’s new Minister of Sport Joanna Mucha said in a speech that it was a privilege to receive the permit for the stadium’s use. The stadium, which has a capacity of 51,145, will host the first game of Euro 2012, when Poland takes on Greece on June 8.

Poland, Russia, sign travel agreement Polish Minister of Foreign Affairs Rados∏aw Sikorski signed a cross-border travel agreement with his Russian counterpart, Sergey Lavrov, in Moscow in December. The agreement will facilitate visa-free travel between the Kaliningrad Oblast, in Russia, and parts of the Pomorskie and Warmiƒsko-Mazurskie voivodships, in Poland, for inhabitants of those areas.

PGNiG to invest z∏.4.8 billion Polish gas monopoly PGNiG plans to spend z∏.4.8 billion on investments next year.

Some z∏.1.1 billion of this figure will be spent on exploration and extraction in Poland and abroad – including for shale gas. ●

6.5% was the y/y level of growth of Poland's industrial production in October.

z∏.3.3 billion is the value of bonds issued by Polish energy provider Tauron. The money raised will be used to finance the purchase of GórnoÊlàski Zak∏ad Elektroenergetyczny.

Quote of the Week “We are at a crossroads … either we take the community path during this crisis ... and search for a European way to overcome it or we take the path of national and state egotism”

SHUTTERSTOCK

National Stadium ready

300 is how many companies the Treasury wants to privatize in the 2012-2013 period.

Polish Prime Minister Donald Tusk in a speech to the European Parliament in mid-December in which he set out his view of the choices facing Europe.

The z∏oty depreciated sharply in mid-December, reaching a 30-month low against the euro on December 13. This led to an intervention by state-owned Bank Gospodarstwa Krajowego, as well as a verbal intervention by the National Bank of Poland, which helped to calm the situation slightly.

Over the last six months, the z∏oty has lost 13 percent – proving one of the least stable currencies in Europe. The downward trend has given a real headache to Poles who hold foreign-currency denominated credit, and has led to fears that Poland’s public debt-to-GDP ratio could exceed the important 55 percent threshold – since the government holds a significant amount of debt denominated in foreign currencies.

The recent weakness of the z∏oty has generally been ascribed to an uncertain economic outlook for the region, and for Europe at large, rather than to the condition of the Polish economy. As a liquid currency, the z∏oty is susceptible to changing moods elsewhere in Europe and to the activities of speculators who aim to weaken it.

News of lower credit-ratings prospects for Bulgaria, the Czech Republic, Latvia and Lithuania has helped contribute to the z∏oty’s depreciation, since investors tend to view CEE currencies as a whole, rather than separately.

Although Poland’s credit rating does not itself appear to be under threat, with ratings agencies reacting positively to the government’s 2012 budget

plan, and despite its economy being seen in a good light by analysts, this has hardly helped the country’s currency. Indeed, as WBJ went to press, it had lost more in December than currencies including the Czech koruna and the Hungarian forint.

In an interview with TVN24, Jan Krzysztof Bielecki, an economic adviser to current Prime Minister Donald Tusk, noted that the z∏oty has in general been a very stable currency in relation to the euro over the last eight years and that its recent depreciation results from the deepening crisis in the euro zone.

“Personally, I think that our currency should be strengthening after the New Year,” Mr Bielecki said.

Adam Zdrodowski

PO

PiS RP SLD Figures in PSLfocus

MN

Mobile businesses Percentage of enterprises with a mobile broadband connection, selected EU27 countries 100 90 80 70 60 50 40 30 20 10 0 an ia* * Cz ec Latv h R ia ep ub lic Po lan Bu d lga r Hu ia ng ar y Un ite EU d K 27 ing d Lit om hu an Ge ia rm an y Fra nc e Au str Fin ia lan d*

PiS march against EU integration

DEC 19, 2011 – JAN 8, 2012

Ro m

2

*Highest in EU27

** Lowest in EU27

Source: Eurostat

Company index Ablon Group ..............................19 Fitch............................................13 PGNiG ........................................10

On WBJ.pl

Aldebaran robotics ....................31 Getin Holding Group ....................5 PKP ............................................19 Atrium European Real Estate ..19 Gigabyte......................................31 Polish State Railways ................19 Avestus Real Estate ..................23 Globe Trade Centre....................21

2011 in WBJ at a glance

Bank Gospodarstwa Krajowego ..2 GN Invest....................................21

As the curtains close on 2011, let us take you through this year’s front page covers and check out the news that made headlines. Log onto WBJ.pl and our Facebook page to refresh your memory and to see what you may have missed.

Bank Millennium........................12 Goodman ....................................20

Polkomtel ..................................10 Prologis ......................................21 Quadra FNX Mining ..................10

Bank Zachodni WBK....................5 HB Reavis ..................................19 Raiffeisen Bank Poland ............23 Beltransgaz..................................8 Hochtief Development Poland 23 Rank Progress ..........................20 Berg cloud..................................31 HSBC Bank Polska ....................12 BZ WBK ........................................5 Huawei..........................................6 Carrefour....................................19 IKEA Property Poland ................20 Castorama..................................23 Jastrz´bska Spó∏ka W´glowa....10

Reas............................................20 Retail Provider ..........................19 S&P ............................................13

CBRE ..........................................21 Jones Lang LaSalle ..................19 Schenker Logistics ....................20

DATELINE

CBRE Global Investors ..............19 KGHM ....................................5, 10 Société Générale........................12 COVEC ........................................10 Lotos ......................................6, 12 Sygnity ..........................................6 Creditanstalt ................................8 Lubasa........................................19 Talanx ..........................................5

January 2012

Cushman & Wakefield ..............21 Lukoil............................................6 Tauron ........................................10

8

THE GREAT ORCHESTRA OF CHRISTMAS CHARITY

12

TAXATION AND ACCOUNTING CONGRESS

Event:

This event raises money for children’s charities and good causes through a series of concerts and other fund-raising activities.

There will be volunteers collecting donations throughout Poland, and the day will end with a celebratory concert.

Location: National Stadium, Warsaw, and various locations throughout Poland wosp.org.pl

Event:

This event aims to deepen participants’ knowledge on recent developments in the field of tax and accounting, as well as to create a platform for comprehensive exchange of views on the practice of implementing the provisions.

Location: Hotel Hilton, Warsaw kpmg.com/pl

Deichmann ................................19 Magnusson ................................15 Deloitte ........................................5 Marvipol......................................20 Echo Investment ........................19 McKinlay Development ..............23

Toys“R”Us ....................................5 TU Europa ....................................5 Unidevelopment ........................21

EDF ............................................10 Media Markt ..............................19 Unilever ......................................21 Eiffage Budownictwo Mitex ......23 Meiji Yasuda Life Vattenfall AB ..............................10 Emax ............................................6 Insurance Company ....................5 Empik Media & Fashion ..............5 Moody’s ......................................13 Enea........................................6, 10 Neinver Polska ..........................21

W.Kruk..........................................5 Warsaw Stock Exchange ......5, 10

Energa ........................................10 Orlen ......................................6, 12 X-Trade Brokers ........................12 Energomonta˝-Po∏udnie ..........19 Peter Nielsen & Partners ..........6 X-Trade Brokers Facebook ......................................2 PGE ........................................6, 10 Dom Maklerski ..........................28

NEWS

DEC 19, 2011 – JAN 8, 2012

www.wbj.pl

3

European Union

The EU can either stand together as a community or follow the road of “national and state egotism,” Poland’s prime minister said in a speech to the European Parliament Polish Prime Minister Donald Tusk said in December that Europe was at a “crossroads” in its search for a solution to the economic and political crisis currently plaguing the bloc.

In a speech to the European Parliament, Mr Tusk said, “We are at a crossroads … either we take the community path during this crisis, and search for a European way to overcome it or we take the path of national and state egotism.”

Mr Tusk’s speech, in which he reviewed the achievements of the Polish presidency of the Council of the EU, included a reiteration of the Polish government’s stance that there should be more, not less integration in Europe. Poland has been pushing this message ever since it took over the rotating sixthmonth presidency in July 2011.

The PM, while never using the word “federation” as Foreign Minister Rados∏aw Sikorski had in his much-publicized November 28 speech in Berlin, nevertheless made it very clear what Poland’s position is on how best to approach the current crisis.

“We need a strengthening of the community instead of looking for ways to disintegrate, exclude and cause divisions in Europe,” said Mr Tusk, adding that “these six months have shown with full force that the crisis feeds and fattens on

the vision of the community falling apart.”

Poland’s stance means the decision of UK Prime Minister David Cameron at the December summit in Brussels to hold his country out of a closer European fiscal union was viewed with disappointment in Warsaw. However, Mr Tusk refrained from criticizing London outright, choosing instead to address the gleeful reaction of some to the UK’s standalone policy.

“When I hear comments, made with satisfaction, that Britain has become an island again, that the English Channel has gotten wider, I really don’t understand why they are said with such satisfaction,” the Polish prime minister said.

Paying the price Meanwhile, Poland has stated that it intends to be a part of the new fiscal union, and that it is ready to put its money where its mouth is.

According to the agreement reached at the early December summit, members of the new fiscal union are expected to provide a combined €200 billion in loans to the IMF to enable it to assist indebted euro-zone members who might need help in the future.

Seventy-five percent of the sum, some €150 billion, is to be provided by members of the

euro zone, while the rest is expected to come from EU countries outside the zone.

Taking into consideration that it seems highly unlikely the UK will participate in this procedure – Poland, the biggest economy among the remaining non-euro-zone countries, would probably have to commit a significant amount.

The sum of €10 billion has been suggested by some experts in the Polish media. Mr Sikorski has denied that Poland’s contribution will be as high as that, but wasn’t able to provide an alternative figure as he said details of the agreement are still being worked on.

Nevertheless, the decision of the government to take part in the IMF operation has raised controversy in Poland, with some asking why Poland should have to pay for the excesses of richer euro-zone countries. The PM attempted to defend his decision in parliament in mid-December, saying that saving the euro zone was in Poland’s interests and that the country’s future was in fact tied directly to the future of the EU. “The strength of the Polish economy is dependent on the stability of the euro zone,” said the PM, adding that the eventual loan would be financed from the National Bank of Poland reserves, from “funds which cannot be used to finance the national budget.”

Unsurprisingly, he failed to convince the largest opposition party, Law and Justice (PiS).

Polish presidency dominated by crisis, but earns praise anyway Although the Lisbon Treaty significantly reduced the role of the EU’s rotating presidency, it is still usually an opportunity for the holding member state to enjoy the limelight for six months, preside over meetings of ministers and, if fortunate enough, maybe even sign a few important agreements.

But Poland’s presidency has been overshadowed by the euro-zone crisis, with German Chancellor Angela Merkel and French president Nicolas Sarkozy making the key decisions and therefore commanding the most attention.

Prime Minister Donald Tusk’s government, meanwhile, focused on making sure Poland, and the 10 other EU countries not in the euro zone, were not completely marginalized.

The fact that Poland and the nine other non-euro countries were invited to join the proposed fiscal union is testament to the government’s success in this matter. And this is Poland’s biggest achievement in the sixmonth period.

But there were some other bright spots too.

The presidency oversaw the adoption of a package of measures for increased fiscal discipline, the so-called six-pack, as well as the

signing of an accession treaty with Croatia.

When Mr Tusk addressed MEPs in the European Parliament on December 14 summarizing the presidency, he received lavish praise for Poland’s efforts.

“The Polish presidency was without a doubt one of the very best presidencies we have had,” said Martin Schultz, the German MEP who will become president of the legislative body come January 17.

European Commission President José Manuel Barroso, meanwhile said that “Poland demonstrated extraordinary capacity during probably the most difficult period since European integration started.”

One of the main worries – at least in Poland – at the beginning of the presidency had been whether the country’s civil servants would cope with the logistics involved in holding the hundreds of meetings scheduled for the six-month period. But according to all accounts, Poland passed this test with flying colors.

As Jerzy Buzek, a Pole and the outgoing president of the EP said, “Poland has shown that it is not a country which has constant problems with it’s neighbours or a country that is badly organized.”

Remi Adekoya

COURTESY OF KPRM

Europe at a crossroads

Mr Tusk wants a strengthening of the EU community Anna Fotyga, a former foreign minister and current PiS MP, stated that according to EU law, central banks are not permitted to give money to governments. “Lending money to the IMF, as the prime minister calls it, is nothing but giving money to Italy and Greece,” she said.

EU-Ukraine summit diminished hopes The final event of significance which, as WBJ went to press,

was due to take place during the Polish presidency, was an EU-Ukraine summit, scheduled for December 19 in Kiev.

The signing of a free-trade agreement between the EU and Poland’s Eastern neighbor was one of the priorities set by the Polish government for its presidency, but the arrest and imprisonment of former Ukrainian Prime Minister Yulia Tymoshenko has soured relations between

Kiev and Brussels.

As of press time, it seemed highly unlikely that the FTA would be inked in Ukraine, although on December 16 Mr Sikorski still expressed optimism that the agreement would be signed “during the Polish presidency.”

Denmark will take over the rotating presidency on January 1, at the conclusion of Poland’s six-month term.

HAPPY HOLIDAYS May the magic of the holidays fill your hearts with joy and may all your dreams for 2012 come true.

To all of our partners and readers we wish a Merry Christmas and a Happy New Year!

Remi Adekoya

NEWS

www.wbj.pl

DEC 19, 2011 – JAN 8, 2012

Politics

FM Sikorski defends government’s EU policy

After surviving a no-confidence vote in the Sejm on December 16, Foreign Minister Rados∏aw Sikorski was grilled by the Parliamentary Commission for European Union Affairs regarding his controversial “federation” speech in Berlin and the proposed fiscal union in which Poland wants to participate.

MPs from the opposition Law and Justice (PiS) party had filed a motion of no confidence against Mr Sikorski following his speech in Berlin, where he called for the creation of a European federation under the leadership of Germany, saying that he “feared German power less than German inactivity.”

PiS politicians blasted Mr Sikorski for the speech saying he wanted a “Fourth Reich” and that he was giving up Poland’s sovereignty. In order for the no-confidence vote to

FLIKR / POLAND MFA

After surviving a noconfidence vote, Foreign Minister Rados∏aw Sikorski had to explain Poland’s Europe policy to a parliamentary commission

Mr Sikorski had much explaining to do in mid-December have passed, a simple majority of 231 votes was required. In the end, however, only 152 MPs supported the motion.

After the vote, Mr Sikorski told the press that in his Berlin speech he was only “expanding on what [the late] President Lech Kaczyƒski had said in 2006 [in a speech also made in Berlin].” The late president was a PiS co-founder.

Mr Sikorski’s statements

drew the fury of PiS politicians, with former Foreign Minister Anna Fotyga saying Mr Sikorski was telling “lies,” and that President Kaczyƒski had never proposed a European federation.

Mr Sikorski then faced questions from the Parliamentary Commission for European Union Affairs regarding the outcome of the December EU summit, where a fiscal union

was proposed.

The minister denied reports circulating in the media that Poland would have to lend roughly €10 billion to the IMF as its stake in the €200 billion in funds which the international institution is expected to receive to help it support euro members in trouble.

“The figure will be much lower,” said Mr Sikorski, but was unable to provide an alternative figure as he said the details of the plan are still being worked out.

Mr Sikorski defended the government’s decision to join the union, saying the most important issue for Poland is that the EU avoided breaking up into euro-zone countries and “the others.”

“The fact that during the last EU summit we could not achieve unanimity does not fill one with too much optimism.

However, the UK’s isolation should not lead to further division within the Union,” Mr Sikorski said, adding that the fiscal union is “a first step towards building a system for euro-zone management.”

Izabela Depczyk

Put an end to ‘theatrics,’ deputy PM tells the EU

COURTESY OF THE EUROPEAN PARLIAMENT

4

Mr Pawlak blamed ratings agencies for the crisis Deputy Prime Minister Waldemar Pawlak said in December that European leaders should put an end to “theatrics” and avoid using “brute force” in their plans to create a closer fiscal union to head off the euro-zone debt crisis.

“Theatrics won’t help us, and EU summits won’t save the euro,” said Mr Pawlak, who blamed ratings agencies for the crisis.

Mr Pawlak, who is also Poland’s economy minister, made the comments during a December interview with Bloomberg.

“The mechanisms of closer fiscal integration need to be applied with imagination and not brute force,” he added, saying their implementation should not come at the cost of

economic growth.

Mr Pawlak said he expects the Polish economy to grow 4 percent next year, as a weak z∏oty drives exports. The Polish government’s official forecast for 2012 sees GDP growth of 2.5 percent.

The outlook for Poland’s public finances brightened in December on news that the budget deficit after November stood at z∏.21.6 billion, or 53 percent of this year’s planned limit.

“This is mostly a result of much less budgetary spending.

We have spent z∏.10 billion less than we had planned at the beginning of the year,” Hanna Majszczyk, deputy minister of finance, told reporters.

Gareth Price, Remi Adekoya

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BUSINESS

DEC 19, 2011 – JAN 8, 2012

www.wbj.pl

5

Christmas retail spending

Another almighty seasonal spending splurge is expected, but beware the hangover Polish consumers have made something of a name for themselves in recent years after helping buoy Poland through a financial crisis that gutted retail sectors in more developed economies – and they didn’t look set to tarnish that hard-won reputation in the run-up to Christmas 2011.

According to a report on Christmas spending by Deloitte, consumers in Poland budgeted 4 percent more on their 2011 holiday spending than they had a year earlier – when the average family set aside z∏.1,800. Some 41 percent of the total is planned to be spent on gifts.

The growth is impressive when compared to that of the eight other major European countries surveyed. European consumers budgeted, on average, €587 (z∏.2,675.44) for the 2011 Christmas season – a drop of 0.51 percent on 2010, due to the continuing eurozone crisis.

Nevertheless, annualized growth in Poland is less eyecatching than it was in 2010, when Poles budgeted 18.7 percent more than they had in the previous year. However, this cooling off shouldn’t be attributed to the crisis in Europe.

Tax incentive Spending grew significantly year-on-year in the run-up to Christmas 2010 as consumers rushed to stock-up on goods ahead of a VAT hike that came into force in January 2011. For this reason, retail sales growth

in December 2011, economists say, won’t match the actual 12 percent y/y increase recorded a year earlier.

“Artificially high sales in 2010 mean we are expecting December retail sales to slow down – we might see 5 percent y/y growth instead of the above 10 percent we’ve witnessed in the last few months,” said Piotr Bielski, an economist at Bank Zachodni WBK.

Floodgates open Most retailers that WBJ spoke with reported a strong start to seasonal trading, although as of press time the traditionally busiest periods still lay ahead.

“For the moment we can say ‘so far so good’ – we have many clients in the group’s stores as well as in our online business,” said Magdalena Zajàc, a spokesperson for Empik Media & Fashion (EM&F).

Asked by Deloitte about the types of gifts they planned to buy for friends and family (excluding children and teenagers) for Christmas 2011, 61 percent of surveyed Poles said they would purchase cosmetics and purfumes, making this category the most popular.

Next up was the jewelry and watches category (32 percent), which rose three place from 2010.

“This year, we have definitely seen a rise in demand, more people are buying jewelry as Christmas gifts,” said

Katarzyna Sosiƒska, PR manager at W.Kruk, a Polish jeweler.

Meanwhile, clothing and footwear, while still a popular gift category, slipped in popularity by two places from 2010 to 2011.

“Obviously, in parallel with what is observed on international markets, the fashion division is a weaker link, since in times of crisis consumers are more cautious while spending money on fashion,” EM&F’s Magdalena Zajàc said.

However, the company is hoping that plans to expand its Gap franchise will help revive its fashion arm, with the success of the first store – opened in October 2011 – having positively surprised the company thus far.

“The first Gap store in Warsaw’s Arcadia mall is continuously doing very well. The sales are higher than planned in our budget and the conversion rate also exceeds expectations,” said Ms Zajàc.

Children’s retailer Toys“R”Us also opened its first store in Poland recently – at the end of November, in Warsaw, just in time for the Christmas season.

“We are very satisfied with the number of customers that have visited our store in Blue City so far.

We’ve got very positive feedback from all sides. The license themes (e.g. Star Wars) and hot products (e.g.

Sony PSP) in Warsaw are similar [in popularity] to other countries, which shows that the world is getting closer together,” said Wojciech Czernek, managing director of Toys“R”Us in Poland.

The hangover While Poles may be happy to let go a little for Christmas, crisis-related worries are beginning to mount. The total sum of positive and negative responses to a Deloitte question concerning Poles’ perspectives for the economy showed that the outlook was 11 percentage points lower (at

SHUTTERSTOCK

‘Tis the season to retail -33 percent) in the lead-up to Christmas 2011 than the -22 percent recorded a year earlier.

But the post-Christmas hangover is not expected to be felt right away: strong retail sales are forecast for January 2012, due to the high base effect from the 2011 VAT hike.

Then, however, consumer cau-

tion is expected to increase as economic slowdown strikes.

“From an average monthly growth rate of around 6 percent in Q1, we expect average growth of 3 percent by the final quarter of 2012. Consumers will become far more cautious due to the crisis,” said BZ WBK’s Piotr Bielski.

Gareth Price

All I want (to give) for Christmas What kind of gifts did Poles say they planned to give to friends and family in 2011 (excluding children and teenagers)?

Top 10 2011

Top 10 2010

1. Cosmetics/perfumes (61%) 2. Jewelry/watches (32%) 3. Books (31%) 4. Pharmaceuticals (28%) 5. Chocolate (26%) 6. Clothes/shoes (26%) 7. CDs (25%) 8. Personal care products and treatments (25%) 9. Accessories (24%) 10. Money (24%)

1.Cosmetics/perfumes (67%) 2. Confectionery (53%) 3. Books (50%) 4. Clothing/footwear (37%) 5. Jewelry/watches (35%) 6. Money (22%) 7. Music (CD, MP3) (18%) 8. Sports accessories & clothing (17%) 9. Films (DVD, Blu-ray) (14%) 10. Food/drink (13%) Source: Deloitte's Christmas Survey 2011

Online shopping – more popular in Poland According to Deloitte, 16 percent of Poles planned to make their seasonal purchases online in 2011, compared to an average of 13 percent in Europe, while some 48 percent said they would buy via a combination of online and instore, compared to 35 percent in Europe.

KGHM share price plunges to 15-month low The share price of Polish copper giant KGHM fell to a 15month low after the government revealed a draft in December detailing its plans to tax copper and silver producers.

If such a tax was in place in 2011, KGHM would have had to pay z∏.2.8 billion to the state coffers, or one-third of its profit, Polish daily Rzeczpospolita wrote.

The copper miner, which is

listed on the Warsaw Stock Exchange, saw its share price fall 7 percent to z∏.112 after the publication of the draft budget, its lowest intraday level since September 10, 2010.

DI

Getin agrees to sell TU Europa for z∏.912 million German insurer Talanx and Japanese Meiji Yasuda Life Insurance Company will jointly buy a controlling stake (50 percent plus one share) in TU Europa, the insurance business of Polish financial-services company Getin Holding

Group.

The cost of the transaction is z∏.912 million, with the deal expected to be finalized in the second quarter of 2012.

Getin will keep hold of a 16.5 percent stake in TU Europa. The new owners are

planning to withdraw the insurer from the Warsaw Stock Exchange.

Meiji Yasuda Life is Japan’s third-biggest private life insurer, while Talanx is Germany’s third-biggest insurGP er overall.

May the Christmas season Fill your home with joy Your heart with love And your life with laughter

6

BUSINESS

www.wbj.pl

DEC 19, 2011 – JAN 8, 2012

IT solutions

Sygnity changing direction, turns consultant Following an unsuccessful merger with tech firm Emax four years ago, Polish IT company Sygnity saw significant losses (of over z∏.100 million in 2009), which led it to implement a new business strategy. Previously, the company focused on the sale of IT products, but it now plans to provide more comprehensive IT business solutions for firms of all sizes.

The company also introduced a cost-cutting and restructuring “shock therapy” program, initiated by its president, Norbert Biedrzycki – who was hired about a year and a half ago. As a result of the changes, 900 jobs were slashed, five Sygnity offices shuttered, and almost the entire management board replaced.

Extended services The implementation of Mr Biedrzycki’s vision for Sygnity will see the company extend its services by partnering more closely with its clients’ businesses.

“This is a dramatic change

because we are shifting from being an IT software vendor to becoming a partner who is willing to resolve all of their business problems using IT solutions,” Mr Biedrzycki said.

In addition to changing its relationship with clients, Mr Biedrzycki said that another of Sygnity’s goals is to broaden its market.

“There’s a huge market for small- to medium-sized enterprises, even micro enterprises, and we are preparing new services and products that we are going to launch with our new marketing campaign in January,” he said.

The company plans to appeal to smaller firms by introducing pricing models that “everyone will be able to afford,” Mr Biedrzycki added.

Sygnity also hopes to promote its long-term vision by way of its re-branding exercise.

Expansion plans Currently, the company focuses most of its energies on three major sectors: the public sector, banking and financing,

COURTESY OF MONDAY PR

The IT provider is making the transition from software vendor to IT business consultant, Norbert Biedrzycki, the company’s president, told WBJ

Mr Biedrzycki wants to expand Sygnity’s business to 16 countries and utilities. “Right now we are organized by the client, by the industry sectors, with the public sector bringing in 40 percent of our revenues and profit,” said Mr Biedrzycki.

The company has traditionally worked with large institutions, including most of the major banks in Poland, as well as the Ministry of Foreign Affairs, the National Bank of Poland and the Ministry of Finance. It has also cooperated

with utilities such as PGE and Enea, and works in sectors such as telecommunications, retail and oil, with companies including Orlen, Lotos, and Lukoil.

When asked about the company’s vision for the next five years, Mr Biedrzycki said that he saw the biggest opportunity for growth in expanding abroad.

Currently, approximately 97-98 percent of Sygnity’s services are used by Polish companies, and the remainder by foreign firms from countries that include Lithuania and Slovakia.

“The strategy going forward, we figured out, is that we need to go abroad with our products in order to expand and in order to basically capture the growth and capture the markets geographically.

Recently, we signed a threeyear contract with Huawei, the biggest [China-based] telecom infrastructure producer, and based on this contract we’re going to launch sales of our solutions abroad to 16 countries in Europe, including Austria, Hungary, Romania, Nor-

way, Sweden,” Mr Biedrzycki said, adding that “we want to be a European company.”

Asked about potential joint ventures and mergers, Mr Biedrzycki said the company had been in discussions with four potential acquisition targets.

These would involve two new sectors. “So far, such plans have been shelved due to market instability but negotiations may resume in the second half of 2012 if markets become stable enough,” Mr Biedrzycki said.

When asked how Sygnity plans to remain innovative in the face of changing trends and technology, Mr Biedrzycki said that the company has established an innovation program that aims to involve everyone in its development, not just managers. “We want everyone to participate in project development,” he said.

Ella Pa∏ka

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

Ministry of Justice printouts gain same status as official documents In connection with an amendment to the Act on the National Court Register on January 1, 2012 computer printouts from the website of the Ministry of Justice (which are and will remain free of charge) concerning information on entities entered into the National Court Register, will have the same power as official documents.

The printouts should be legible so that their contents can be verified with the data as included in the register. The register consists of the entrepreneurs’ register, the register of associations and other social and professional organizations, foundations and independent public health institutions as well as the register of insolvent debtors. This amendment will make it easier for entrepreneurs to conduct day-to-day economic activity, since a printout from the website will be viewed as being equal to an officially certified paper.

Amendments to legal regulations concerning assemblies On December 1, 2011 a draft of changes to the Law on Associations was passed in its first reading in the Sejm, the lower house of the Polish parliament. The new law stipulates the obligation to inform a municipal authority about participation in assemblies of persons whose identification is not possible due to their clothing, the hiding of their face or a change in their appearance.

The purpose of these changes is to eliminate from assemblies those persons who cannot be identified, in order to ensure public order and safety of third persons and property. The draft of the act

stipulates one exception to this rule. Persons who cannot be identified will be able to take part in assemblies in specific cases, such as assemblies whose purpose is to protect employees’ rights, express objections against the activity of public figures and to support the protection of animals.

New act on population register As WBJ went to press, the Act on Population Register was set to come into force on January 1, 2012. Pursuant to the act, any foreigner who is an EU citizen, a citizen of a member country of the European Free Trade Agreement (EFTA) or a citizen of Switzerland staying within the Polish territory is obliged to register his/her place of permanent or temporary residence within 30 days from their date of arrival.

Other foreigners staying on Polish territory will be obliged to register no later than four days after their arrival. Foreigners will be released from the registration obligation if their stay in Poland does not exceed 14 days.

Any foreigner who is not a citizen of an EU member state, a citizen of a member country of the EFTA, or a citizen of Switzerland, who does not fulfill the relevant registration obligation, will be subject to a penalty fee. This fee will not be applicable for other foreigners (e.g. Those from the EU).

Registration of the place of residence of foreigners is performed by the authority of the municipality in which the foreigner resides. Pursuant to this act, from January 1, 2014 registers of inhabitants and registers of residence of foreigners will be canceled. ●

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DEC 19, 2011 – JAN 8, 2012

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7

Gender equality

Keeping women in the workforce Increasing female participation in labor markets would benefit Poland’s economy, according to senior World Bank economist Carolina SanchezParamo Polish women’s health, education and labor participation levels are on par with the EU average, Carolina SanchezParamo, a World Bank senior economist who was in Warsaw recently to present the World Bank’s 2012 report on gender equality and development, told WBJ in an interview.

But there is a catch: as with other women in the region, Polish women tend to have a more interrupted career – if they choose to work at all – and often retire earlier than men.

For example, only 23 percent of Polish women aged 55-64 are currently employed. That is 20 percentage points lower than in the EU15.

One consequence of this is that female entitlements in terms of pensions are significantly lower than those of men.

But it also has a cost for the whole of society, as lower

employment levels translate into lower output and income.

In view of the projected Polish demographic decline, this is set to become a pressing issue in the future.

“Unlike with equal access to education and health, which can be considered as rights, we believe there is a strong element of choice in women’s participation in the labor market.

But we also argue that with an increasingly educated workforce, the fact that many women are not in the market definitely has a cost in terms of productivity growth and eventually income growth. Higher equality makes countries richer and more competitive,” said Ms Sanchez-Paramo.

Natural changes Raising the retirement age for women from 60 to 67 by 2040, a measure that was recently announced by Prime Minister Donald Tusk, is likely to encourage women to stay longer in the labor market.

As fertility rates decline and urban migration and education levels increase, it is expected that there will be a natural trend towards Polish women staying in the labor market

longer. Recent studies by the World Bank show that most Polish women who are inactive before reaching retirement age have less than a high school education and are living in villages and small towns.

The fact that between 1991 and 2009 enrollment in tertiary eduction among young women went up from just 25 percent to 84 percent (compared to 19 percent and 59 percent for men, respectively) is encouraging.

The changing nature of job offers should also give a push to female participation in the labor market. “As jobs move from manufacturing to service ... and are increasingly driven by technology, they become more amenable to women,” said Ms Sanchez-Paramo. The growing availability of jobs in the information and communications technology sector in particular has had a positive impact on employment opportunity for women, she added.

Action needed These trends will converge, leading to some increase in female participation in the labor market even despite the absence of particular govern-

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Wir ziehen um Wir freuen uns lhnen mitzuteilen, dass sich unser Büro ab dem 19. Dezember 2011 im "Mokotowska Square" in Warschau befindet.

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ment policies, said Ms SanchezParamo. But some things won’t change unless they are specifically targeted by governments.

One of those is housework and care work, which disproportionately falls on women all around the world.

“It is interesting how little this changes with development and income. In this respect France, Mexico and Ghana look pretty much the same.

Women have therefore less time to participate in the economy,” said Ms SanchezParamo.

One of the remedies is affordable, high-quality childcare. In Poland, as in the rest of the region, the postcommunist transition brought a significant downsize in childcare coverage. In the region, it is now much smaller than in western EU countries. Although the Polish government is aware of these issues and is working on implementing policies aimed at creating more flexible options for early childcare, as well as increasing pre-school enrollment, this has taken its toll on female labor participation, said Ms Sanchez-Paramo.

Women at work Employment activity sectors, as a percentage of Polish male and female employment, 2006-2009

100 80

Women

60

Men

40 20 0 Agriculture

Industry

Services

Source: World Bank

According to the World Bank, care-taking and homemaking activities are the prevailing reason for inactivity among Polish women under 50.

“The world over, in the absence of childcare, women cope by staying at home or somebody else does,” said Ms Sanchez-Paramo. While in many countries this responsibility often falls on older siblings, in Poland the typical caretaker is the young grandmother.

“The idea is to give – through policy – everybody in the household the choice to

engage in economic activity if they so desire.”

But as the world economy slows down, how can the Polish government reconcile better childcare policies and a tighter budget?

There is no miracle answer, and each country will have to experiment to find the right mix of services, admitted Ms Sanchez-Paramo.

“But when they are in place, the evidence is conclusive that women have better access to formal jobs. It will boil down to a matter of policy priorities.”

Alice Trudelle

8

OPINION & ANALYSIS

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DEC 19, 2011 – JAN 8, 2012

The ECB fear factor P

anic is beginning to overwhelm the euro zone, with both Italy and Spain caught in the maelstrom and Belgium also slipping into the danger zone. As France is also dragged down, the widening gap between its bond yields and Germany’s is severely testing a political partnership that has driven six decades of European integration.

Even strong swimmers such as Finland and the Netherlands are straining against the undertow. Banks are struggling to stay afloat – their capital providing little buoyancy as funds drain away – while businesses that rely on credit are in trouble too.

And as a result all signs point to a euro zone recession.

Left unchecked, this panic about sovereign solvency will prove self-fulfilling. Just as a healthy bank can fail if it suffers a run, even the most creditworthy government is at risk if the market refuses to refinance its debt.

One can scarcely bear imagining the consequences: cascading bank and sovereign defaults, a devastating depression, the collapse of the euro (and perhaps even that of the European Union), global contagion, and potentially tragic political turmoil. So why aren’t policymakers doing whatever it takes to avoid catastrophe?

Crisis intervention

sion of monetary policy, to prevent a depression that would lead to deflation, and to avoid the breakup of the euro. Yet it has so far refused to do so, hiding behind a legal fig leaf.

Granted, Article 123 of the Lisbon Treaty prohibits the ECB from purchasing bonds directly from public bodies, but intervening in the secondary market is permitted. The ECB has long been doing so through its Securities Market Program. And where in the treaty does it say that extending the SMP is prohibited?

Indeed, a credible open-ended commitment to contain interest-rate spreads would actually require fewer purchases than the ECB’s current limited and temporary program does.

Ever since Italian bond yields first spiked in early August, I have believed that only an open-ended commitment by the European Central Bank to keep solvent governments’ bond yields at sustainable rates could calm the panic and create the breathing space needed to implement confidence-boosting reforms.

Everything that has happened since then has only confirmed this view.

Now that the crisis has reached the “core” of the euro zone, the resources needed to backstop weaker sovereign states is exceeding the limited fiscal capacity of stronger ones.

Financial wizardry cannot disguise that, while throwing a bigger lifeline risks dragging everyone down. Piling everyone on to the same life raft – through euro bonds backed by joint and several guarantees – is not legally feasible for now, and would be politically toxic if attempted prematurely. Nor can a systemic crisis be resolved by individual governments’ actions – not least because the panic is outpacing politicians’ ability to respond. Only the ECB has the unlimited wherewithal to save Europe from the abyss now.

The ECB has a strong rationale to act: to ensure the smooth transmis-

History repeating itself?

Unfortunately, many Germans, notably at the Bundesbank, loathe the idea of central-bank intervention, because it conjures up memories of 1923, when the Reichsbank printed money to fund government borrowing, the resulting hyperinflation destroyed middle-class savings, and a decade later Adolf Hitler came to power. Yet Germans ought to remember that it was in fact the financial panic provoked by the collapse of the Austrian bank Credi-

tanstalt, the resulting slump, and misjudgment by the German political establishment that cleared the Nazis’ route to power.

Far from precluding action, history justifies it. Besides, there is no reason to panic about inflation when monetary growth is low, bank credit is contracting, and people are hoarding money rather than spending it.

Moreover, any ECB purchases could continue to be sterilized.

while reassuring the ECB and markets that governments remain committed to making the euro work.

Exceptional times demand exceptional measures – and I believe that the ECB will feel obliged to act if the euro zone is pushed to the brink. But the longer the ECB delays, the greater the hit to people’s jobs and savings, the deeper the enduring

“The longer the ECB delays, the bigger the risk of a catastrophic mishap”

Easing the pressure?

Another objection is that ECB intervention would ease the pressure on the new governments in Italy and Spain to reform. Yet, as it is, reformers have no time to establish their credentials, and if the euro zone collapses, the door will be open to populist extremists. So why doesn’t the ECB strike a bargain with solvent governments to keep rates down as long as they stick to their reform programs?

Euro-zone leaders could also set out a road map towards euro bonds, subject to strict conditionality, and tied to a credible mechanism for ensuring fiscal prudence. This would provide an additional incentive for governments that wish to qualify to introduce the necessary reforms,

Philippe Legrain

damage to investors’ confidence in the euro zone financial system, and the bigger the risk of a catastrophic mishap. The time to act is now. ● Philippe Legrain is an independent economic adviser to the European Commission.

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

Belarus – one year on O

ne year after the December 19 protests that followed the presidential election in Belarus were suppressed, the country has become a very different place.

Any optimism associated with the rel-

“Belarus will undoubtedly have to increase its dependence on Russia” atively liberal 2010 presidential campaign disappeared when the demonstrators were driven from Minsk’s Lenin Square.

Since then, jail sentences have been given to almost all of President Aleksander Lukashenko’s opponents (opposition leaders Andrei Sannikau and Mikalay Statkevich are currently

in penal colonies) and those who protested in so-called “silent marches” or against rising gasoline prices (the “STOP-benzin” action) have faced repression.

For Belarusian authorities, the post-election year was particularly difficult, both in the internal arena as well as with regard to foreign policy.

The implementation of pre-election promises to approximate the average Belarusian salary to $500 intensified the growing crisis. Forced to fulfill its election promises, the government decided to print money, which started an inflationary spiral. Between January and November of 2011, inflation exceeded 100 percent, and it is estimated that by the end of the year it will exceed 120 percent.

Financial woes In addition, necessary reforms related to the country’s financial system were shelved. For example, in 2010 Belarusian authorities decided not to devalue the ruble by 20 percent as suggested by the IMF, which caused a

huge crisis in the currency market in 2011. Belarusians who wanted to exchange rubles for foreign currencies quickly faced shortages at the exchanges and long queues formed between January and May. However, the National Bank of Belarus (NBB) could not intervene because it had little in its foreign reserves.

The ruble’s devaluation at the end of May, when its value was reduced by 56 percent against a basket of other currencies, deepened the problems in the currency market. At the same time, fixed currency exchange rates were introduced (the offered rates could not differ by more than 2 percent from the official one), which resulted in shortages of currency on the interbank market. This situation lasted until October when the NBB eventually freed the price of the ruble. Finally, during the last year the ruble lost almost 300 percent of its value.

The devaluation of the Belarusian currency and high inflation severely affected Belarusian society and has

led to disgruntlement among the population, although evidence of a potential revolution cannot be observed. This is primarily out of fear of repression but also because of the lack of alternatives to the current government, as the opposition is not recognized by authorities.

Russian dependence The events of December 2010 also resulted in changes to the country’s foreign policy. The dispersal of the post-election demonstrations was tantamount to the end of the “thaw” in relations between Minsk and Brussels that had been seen since 2008.

President Lukashenko has since fallen into ever greater dependence on Russia. Initially, it seemed that Russia did not want to help its fraternal republic – the Kremlin refused to give Belarus a stabilization loan and the Russian Finance Minister criticized Belarusian authorities for the lack of economic reforms.

This situation changed at the end of 2011 when, in exchange for Russ-

Anna Maria Dyner

ian support for projects of economic integration – the Common Economic Space and the Eurasian Union – Russia decided to support Belarus financially.

Russia’s gas giant Gazprom bought 50 percent of Belarusian gas network operator Beltransgaz for $2.5 billion. Additionally, from 20122014, Belarus will receive significant discounts on gas prices, which will allow it to save approximately $2.5 billion annually starting from 2012.

However, the coming years will remain particularly difficult. In 20132014, Belarus will have to return a total of $6 billion to foreign creditors.

Without economic reforms and support from the European Union, this will mean the country will undoubtedly have to increase its dependence on Russia in both economic and political terms. ● Anna Maria Dyner is an analyst at the Polish Institute of International Affairs. pism.pl

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10

YEAR IN REVIEW

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DEC 19, 2011 – JAN 8, 2012

A look back at 2011

Change in the air WBJ takes a look back at the major events that took place in Poland and around the world in 2011

plunged along with major international stock markets in the summer, performed generally well over the course of the year.

With the continuation of the euro-zone crisis, the revolutions that swept the Arab world, a historic Polish parliamentary election, Barack Obama’s first visit to Poland and several major deals in the energy sector, Poland’s politicians and businesspeople were certainly kept busy in 2011.

The long-awaited official Polish report into the April 10, 2010 plane crash in Smolensk, which took the lives of President Lech Kaczyƒski and 95 others, was released in August. It revealed that the pilot, co-pilot and navigator were not sufficiently qualified to fly the ill-fated Tupolev Tu-154 plane.

In the wake of the report, Defense Minister Bogdan Klich resigned from his post and the 36th Regiment, accused of not training its pilots properly, was disbanded. But the report was strongly criticized by both Poland’s main opposition party and Russian investigators, who had released their own report in January.

Events in Libya dominated the headlines in 2011 an effective response as the economies of Greece, Portugal and Italy faltered, was limited.

The country used what power it had to repeatedly warn against the threat that the crisis could lead to the creation of a twospeed Europe, with euro-zone countries on one side, and noneuro-zone countries on the other. As the year and the Polish presidency both drew to an end, the message seemed to have been taken on board, with all EU countries except the UK

GDP growth for full-year 2011 was revised downwards from 4.6 percent to 4 percent, while the 2012 budget plan assumes GDP growth of 2.5 percent.

However, in part because of the uncertain economic situation in Europe, the opening of the labor markets of Germany and Austria in May did not lead to an exodus of skilled Polish workers, as many had feared it would. And the Warsaw Stock Exchange’s indices, which

having pledged to work towards creating a fiscal union.

On the domestic front, the Polish government’s support for a more integrated Europe heightened tensions between it and the country’s main opposition party, Law and Justice (PiS), which argued this could endanger Polish independence.

The crisis in the euro zone also took its toll on Poland’s economy, with the z∏oty being hit particularly hard towards the end of the year. Projected

Parliamentary elections In October, Poles gave a second mandate to a Civic Platform-led government headed by Donald Tusk. Civic Platform (PO) became the first party in post-

communist Poland to be elected in back-to-back parliamentary elections. Investors, who generally view PO as a businessfriendly ruling party, reacted positively to the news, while experts said PO’s victory was a testimony to the party’s performance in its first term, but also to a maturing of the Polish political system.

But the election’s biggest surprise was the strong performance of Palikot’s Movement (RP), which received 10 percent of the vote during its first-ever attempt to enter parliament. The ultra-liberal RP replaced the Democratic Left Alliance (SLD) as the thirdlargest party in the Sejm, and immediately began clashing with the conservative PiS. PiS itself remained the main opposition party but was weakened when a group of 16 MPs, united in their criticism of Mr Kaczyƒski and assembled around former PiS deputy leader Zbigniew Ziobro, left the party and established a new parliamentary caucus.

After the elections Donald Tusk seemed to feel he had the

SHUTTERSTOCK

Poland kicked off its six-month turn at the head of the European Council on July 1 with the ambitious goal of “restoring hope” to the European Union, in the words of Prime Minister Donald Tusk. But the eurozone crisis quickly eclipsed Polish priorities and Mr Tusk admitted in Strasbourg six months later that he could not honestly say Europe was more united or that the biggest crisis the EU had ever seen had been effectively dealt with.

As a non-euro-zone member, Poland’s ability to manage

SHUTTERSTOCK

Euro-zone crisis

Smolensk tragedy

Alice Trudelle

Mr Palikot’s party received 10 percent of the vote in the 2011 parliamentary elections

Deals of the year One of the largest deals the Warsaw Stock Exchange saw this year was the privatization of Jastrz´bska Spó∏ka W´glowa (JSW), the EU’s largest producer of coking coal, which raised nearly z∏.5.4 billion in June.

Despite Poland’s commitment to reducing greenhouse gas emissions over the next few years, some of the biggest investments announced or carried out in 2011 concerned new coal-fired-plants. Among them is the z∏.11-billion construction of two new power blocks at PGE’s Elektrownia Opole power plant, a new z∏.6-7 billion power block for Energa, and a €1.8 billion plant that French EDF plans to build in Poland. State-controlled power groups Enea and Tauron also said that they were planning to launch construction of new coal-powered blocks.

Also in the energy sector, Swedish Vattenfall AB sold several of its Polish assets for a total of z∏.7.6 billion to state-controlled Polish energy firms PGNiG and Tauron in August.

Both transactions were judged to have been above market prices.

In the telecoms sector, Polish billionaire Zygmunt Solorz-˚ak acquired mobile operator Polkomtel for z∏.15.1 billion, adding to his collection of media and telecoms companies, and enabling him to embark on creating a super-fast 4G LTE network across Poland.

Copper miner KGHM, which revised its expected 2011 net profit upwards on higherthan-expected copper prices, entered into an agreement to buy Canadian mining group Quadra FNX Mining for z∏.9.46 billion. If the deal goes through, it would be the single largest foreign acquisition made by a Polish company.

Deals that were less successful included the attempted sale of Enea for z∏.5 billion, which fell through when French EDF pulled out of negotiations in April. Poland’s deal with Chinese contractor COVEC for the construction of a segment of the A2 highway also went awry. COVEC, whose bid amounted to less than half the amount the government had budgeted for the project, was removed from the project due to delays. ●

YEAR IN REVIEW

political capital to embark on major economic reforms, among them a gradual extension of the retirement age to 67 for both men and women, an increase from 10 to 25 in the number of years that police officers and military personnel must serve before they can retire and a reduction in costly privileges for other groups such as miners, the clergy and farmers.

Foreign affairs As 2011 was winding down, countries such as Syria were still experiencing the wave of protests that swept the Middle East and North Africa from the very beginning of the year. The Arab Spring saw the overthrow of the governments of both Tunisia and Egypt, while Libya was rocked by an eight-monthlong civil war, and the eventual capture and death of its former

dictator, Muammar Gaddafi.

The Polish government, backed by public opinion, refused to join NATO’s military campaign in Libya. Foreign Minister Sikorski, however, was the first foreign minister from Europe or America to visit the anti-Gaddafi transitional authority in May. He was back again in October, this time with the leaders of Polish oil and gas companies, just days after the dictator’s death had signaled the end of the war.

Closer to home, one of the Polish presidency’s top priorities was the finalization of a Ukraine-EU free-trade area and an association agreement, but the arrest and condemnation of former Ukrainian Prime Minister Yulia Tymoshenko put that in jeopardy.

Meanwhile, as Belarusian authorities intensified their repression of domestic opposi-

tion throughout the year, relations between Poland deteriorated. A particularly low point was the trial and condemnation of human rights activist Ales Belyatsky, partly on information provided to Belarusian authorities by unwitting Polish and Lithuanian officials.

US President Barack Obama’s first visit to Poland in May gave a boost to Polish-US relations, although few concretes came out of the visit.

President Obama confirmed the establishment of a US Air Force aviation detachment in Poland starting in 2013, but Poles were still not included in the US Visa Waiver Program.

Energy Potential cooperation regarding shale gas, which the US Energy Information Administration estimates could lie in enormous quantities beneath

2011 at a glance January

August

• Estonia adopts the euro • Tunisia’s government is overthrown

• Ukrainian President Viktor Yanukovych visits Poland • Hosni Mubarak is overthrown in Egypt

• Controversial politician Andrzej Lepper is found dead in his Warsaw office. His death is officially ruled a suicide • Rating agency Standard & Poor’s downgrades US credit rating • Polish and world markets go into turmoil and register severe losses

March

September

• Japan is hit by a magnitude 9.0 earthquake and a tsunami which causes a number of nuclear accidents and over 15,000 confirmed deaths • Launch of NATO military intervention in Libya • Polish hooligans make headlines after clashing with police at a match in Lithuania

• Polish Finance Minister Jacek Rostowski warns the European Parliament that if the euro zone collapsed the EU would not survive and a war could ensue, drawing sharp criticism • Romania and Bulgaria are denied accession to the Schengen zone • The Eastern Partnership summit takes place in Warsaw

February

Poland, was also discussed during Mr Obama’s visit. But although several major US, Polish and international companies actively prospected throughout the year, little in the way of concrete information was uncovered about the actual size of Polish reserves and whether extraction would be economically viable.

Japan’s Fukushima nuclear disaster, the largest since Chernobyl in 1986, led to protests throughout Europe over the safety of nuclear energy. And while Germany announced that it would phase out nuclear energy altogether, Poland is still moving ahead with plans to build two 3,000-megawatt nuclear power plants by 2030.

www.wbj.pl

President Obama made his first visit to Poland in May The Nord Stream pipeline, which runs under the Baltic Sea, bypassing Poland, officially linked Russian gas reserves and German and European

Several events throughout the year cast a shadow over Poland’s image as co-host of the Euro 2012 soccer championship.

In the spring, Polish hooligans were prominent at an international match in Lithuania, and also at the Polish Cup final in Bydgoszcz.

In response, the Polish government introduced electronic tags for convicted hooligans and on-site court proceedings at stadiums.

In June, a report by the Supreme Audit Office (NIK) said delays in construction of transport infrastructure had put Poland’s ability to effectively co-host the event in doubt.

Infrastructure investments related to the tournament are forecast to cost a hefty z∏.69.6 billion, the lion’s share of the total z∏.81.3 billion earmarked for the whole event.

In December, allegations of corruption from the Polish Football Association’s (PZPN) secretary-general Zdzis∏aw Kr´cina and its president Grzegorz Lato eventually led to the dismissal of Mr Kr´cina. Mr Lato stayed on, but many expect a significant shake-up of the organization after the tournament.

However, positive news included the completion of all four Polish venues for Euro 2012, with the National Stadium in Warsaw being handed over for use in mid-December.

In addition, in the tournament’s group-stage draw, Poland, classed as one of the tournament’s rank outsiders, was handed possibly the easiest of the four first-round groups, being drawn against the Czech Republic, Greece and Russia.●

May • Beatification of Pope John Paul II • German labor market opens to Poles • Osama bin Laden is shot and killed in Pakistan by US Navy SEALs and CIA operatives. His body is buried at sea • The Polish Cup final match in Bydgoszcz sees rioting fans cause z∏.40,000 of damage • German health authorities report the first instances of E. coli bacterial infections • The EU agrees to a €78 billion rescue deal for Portugal • Barack Obama visits Poland

June • The European Commission pledges €210 million compensation for farmers who lost money due to the E. coli outbreak. Polish farmers get €46 million • Wroc∏aw chosen as Poland’s European Capital of Culture 2016

July • Polish presidency launches • Russia lifts its ban on Polish fruits and vegetables, ongoing since June 2 • Anders Behring Breivik detonates a bomb in Oslo before going on a shooting spree at a youth camp on Utøya Island • The Polish government publishes its official report into the April 10, 2010 plane crash in Smolensk • European leaders pledge a second €110 billion bailout to Greece

October • Parliamentary elections are held in Poland • In Ukraine, Yulia Tymoshenko is sentenced to seven years in prison • Poland’s Internal Security Agency (ABW) arrests 19 people in connection with the July Oslo bombing • The NATO military intervention in Libya ends • The global population reaches seven billion

ADGLOBAL Êwiat gad˝etów a d g l o b a l . p l

November • Polish pilot Captain Tadeusz Wrona executes an emergency landing of a Lot Polish Airlines Boeing 767 at Warsaw’s Chopin Airport • The first Nord Stream gas pipeline is officially opened • Independence day riots rock the Polish capital, 250 people are arrested • Greek Prime Minister George Papandreou resigns • Italian Prime Minister Silvio Berlusconi resigns • PGE shortlists ˚arnowiec, Choczewo and Gàski on the Baltic coast as the three potential locations for building the country’s first nuclear power plant

December • Parliamentary elections are held in Russia, massive protests against alleged election rigging erupt • Croatia signs EU accession treaty • Poland commemorates the 30th anniversary of Martial Law. PiS organizes a march focusing on threats to Polish independence • Kiev hosts EU-Ukraine summit ●

consumers in November.

Poland had long opposed the project, and no high-profile Polish official was present at the launch. ●

Euro 2012

April • First anniversary of the Smolensk disaster • Warsaw Stock Exchange celebrates its 20th anniversary

11

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DEC 19, 2011 – JAN 8, 2012

May the good times and treasures of the present become the golden memories of tomorrow.

ADGLOBAL wishes you a Merry Christmas / joyful holiday season and a Happy New Year.

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COVER STORY

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The economy in 2012

Will euro-zone headwinds blow the Polish economy off the slow but steady course many expect it to travel in 2012?

Predicting what will happen to any European economy in 2012 is a tricky matter. A default by Rome, a credit downgrade for France or Germany, or some other equally catastrophic news from within the euro zone, and all forecasts would be rendered worthless. Some may argue that for 2012, all bets are off with regard to the continent’s economies. Even when it comes to Poland – a country which has stayed relatively stable in the storms of the past few years – the guessing game is fraught with uncertainty.

On the other hand, busi-

nesses could hardly function if completely bereft of some kind of macroeconomic frame of reference around which they can plan for the year ahead. It therefore seems worthwhile to attempt to provide one for Poland.

One thing everyone seems to agree on is that in 2012, the Polish economy is unlikely to see the 4 percent growth rate that is expected for full-year 2011.

Although the economy hasn’t slowed down significantly in the past few months (as some had predicted), it seems improbable that business activity will not be affected negatively in the coming year, due to the euro-zone slump and continued investor anxiety.

Out of the top-five destinations for Polish exports, three of them – Germany, France

and Italy – are members of the troubled euro zone. The most significant question therefore concerns the extent to which the woes of “old Europe” will weigh on Poland’s economy in 2012.

In its revised budget plan for next year, which was released in December, the government assumes GDP growth of 2.5 percent. The IMF’s latest forecast, likewise, predicts 2.5 percent growth for Poland in 2012, whereas the World Bank expects the CEE’s biggest economy to expand by 2.9 percent. But what do Polish economists think?

‘Realistic’ predictions but German worries Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers, told WBJ that the government’s GDP projections are “realistic.”

Expert’s Opinion

Can Poland continue to be the economic ‘exception’ in Europe?

Alan Jarman CEO HSBC Bank Polska SA The history books will need more space for their chapter on 2011. Nobody could have predicted sweeping political change across North Africa, the fall of two democratically elected governments in Europe, plus the gravest economic threat to the whole of Europe since 1945. So, we leave 2011 in a far more uncertain mood than we entered it, damaging an already fragile confidence that will hold back recovery from the economic and financial crisis that started in 2008.

The situation provides an interesting contrast to life in Poland, where we con-

tinue to see economic growth outpacing the rest of the EU, consumer and corporate confidence remaining strong and where we have political stability through the first government since 1989 to be re-elected. I’m not sure whether Poles truly recognize how good a position to be in this is, and that almost every country in Europe would swap positions with Poland right now.

The question everyone is asking is: “How will Poland be impacted by the euro-zone crisis?” There are two responses. The first is “I don’t know!” No one can predict what will happen next, and whether politics and economics can combine to provide much-needed solutions. So until the answer becomes clearer, all outcomes remain theoretically possible.

Having said that, the second part of the answer is that Poland will, to some extent, be impacted. With 50 percent of exports going to the EU, and with 70 percent of the banking sector being foreignowned (mainly from euro-zone economies), the potential problems are clear and visible.

Poland has already dodged one major crisis, and looks poised to do so again. If it does, Europe will look on in envy. ●

BROUGHT TO YOU BY HSBC BANK POLSKA SA

“Exports will power the economy next year. In the first half of 2009, in the heat of the financial crisis, Polish exports collapsed by double-digit numbers. There is no sign whatsoever of that happening now and this is mainly because German exports are still doing relatively well,” he said.

Roughly a quarter of Poland’s exports go to Germany, many of which are used in turn as components in German exports, so the significance of the economic health of Poland’s richest neighbor is paramount. But Mr Kwiecieƒ says that for Germany to continue to do well, certain things need “to not happen.”

“Firstly, we can only hope that S&P’s chief economist’s allusion to a major German bank going under will not come to bear. That could lead to a freeze in the banking sector in the whole of Europe,” said Mr Kwiecieƒ.

His reference was to statements made by ratings agency Standard & Poor’s chief economist, Jean-Michel Six, who said after the December 8-9 EU summit that time was running out for the euro zone to resolve its debt problems, and that it might need a financial shock to get it moving.

“There is probably yet another shock required before everybody in the euro zone reads from the same page, for instance a major German bank experiencing some real difficulties on the markets, which is a genuine possibility in the near term,” Mr Six said, adding that “then there would be a recognition that everybody is indeed in the same boat and that even German institutions can be affected by this contagion.”

The statements were ominous to say the least, and it is worth noting that S&P had shocked financial markets at the beginning of December by putting 15 euro-zone countries, including Germany, on watch for a potential downgrade. The consequences of a major German bank going bankrupt brings to mind memories of the chaos unleashed in the global financial system after the collapse of Lehman Brothers in 2008.

The second danger to the German economy is a collapse in Asia, particularly in China – a major destination for Ger-

Remi Adekoya

SHUTTERSTOCK

Navigating a sea of uncertainty

2012: Stormy economic waters ahead man exports. Putting it simply, if China’s economy slows, Germany’s will also, and Poland’s will almost certainly follow suit.

But Mr Kwiecieƒ said he didn’t expect a “considerable” slowdown of the Chinese economy, which should still grow at around 7 percent in 2012 – enough to keep its demand for imports strong – from the around 9 percent expected for 2011.

Spending and investing Both Jaros∏aw Janecki, chief economist at Société Générale Polska, and Grzegorz Maliszewski, his counterpart at Bank Millennium, also expect Polish net exports to rise next year. Though in Mr Maliszewski’s case, it is not for the most heartening of reasons.

“Domestic consumption will decelerate and imports will slow. This will in turn cause net exports to rise,” said Mr Maliszewski. X-Trade’s Kwiecieƒ also expects weaker consumption in Poland due to a worsening situation in the labor market and limited upward movement in wages.

But Société Générale’s Janecki was more upbeat, expecting consumption to remain “strong.” He also thinks the economy will get a boost, albeit a limited one, from the 2012 European soccer championships, which will to take place this summer in

Poland and Ukraine.

Société Générale expects Poland’s GDP to expand by “3 percent or more,” according to Mr Janecki.

Bank Millennium is currently predicting 3.2 percent growth for Poland in 2012 although Mr Maliszewski says that figure may be revised.

Mr Kwiecieƒ expects a weaker investment climate next year, pointing to an expected slowdown in public investments as the soccer tournament approaches.

“Projects already started will be completed, but I don’t expect new ones to take off,” he said.

Société Générale’s Mr Janecki differed, however, saying he thinks public projects which have not yet started will be launched in 2012 and rushed through in the period preceding the tournament.

Mr Janecki was also more positive about the overall investment environment, pointing to announcements made by several major companies about investments in Poland next year.

Polish oil companies Orlen and Lotos, for example, plan to make large investments in 2012, while Portuguese firm Jeronimo Martins intends to open at least 850 new Biedronka discount stores in Poland between 2012 and 2014. Several energy companies operating in Poland, meanwhile, have

COVER STORY

DEC 19, 2011 – JAN 8, 2012

also announced significant investment plans for 2012.

Weak z∏oty When it comes to the z∏oty, the consensus among economists spoken to by WBJ was that the Polish currency was unlikely to appreciate much in the near future.

Mr Maliszewski expects the z∏oty to remain weak against the dollar and the euro in H1 of 2012 before recovering in the second half of the year. Mr Janecki forecasts an exchange rate of z∏.4.20 to the euro by the end of next year.

A weak z∏oty would boost exports, improving Poland’s current account deficit, at least temporarily. On the downside, the z∏oty’s depreciation would weigh on household disposable income, as nearly 40 percent of Polish household debt is denominated in a foreign currency.

That could further dampen domestic consumption. What’s

more, a weak z∏oty would also increase the government’s debt level in 2012, thanks to an increase in the value of the debt it holds that is denominated in foreign currencies.

Ratings agencies almighty Nowadays it is difficult to talk about the prospects for a country’s economy without mentioning the views of ratings agencies. So what are the major ratings players currently saying about Poland?

After the government unveiled its budget plan in December, Moody’s announced that it was “positive for the country’s credit rating” as it highlighted the government’s commitment to consolidating public finances.

Fitch said it saw “no reason for any rating changes,” regarding Poland in the nearest future.

That, at least, rules out any downgrades from them for now.

Meanwhile, S&P said in

December that it might even upgrade Poland’s credit rating outlook from “stable” to “positive,” if the government realizes its plans for fiscal consolidation and the deficit falls.

So, Poland seems to be in the agencies’ good books, for now at least.

Many ‘what ifs’ Overall, growth forecasts appear much brighter for Poland than for most other European countries in 2012.

If the euro zone doesn’t disintegrate and Prime Minister Donald Tusk pushes ahead with the economic reforms he announced in December, then the Polish economy has a good chance of ending 2012 in a healthy shape.

Of course, there are many more “ifs,” but that is a situation we will all have to get used to – the stability and predictability that Europe was once known for has now simply evaporated. ●

The year ahead Some of the events you should expect to make the headlines in 2012 January • The six month Danish presidency of the EU Council launches • The euro zone celebrates 10 years of existence. (Or will it?)

• Egypt holds the third round of its parliamentary elections and first round of legislative elections • Politicians and businesspeople meet in Davos, Switzerland for the Annual World Economic Forum

February • Queen Elizabeth II celebrates her Diamond Jubilee, marking the 60th anniversary of her accession to the thrones of the United Kingdom, Canada, Australia and New Zealand • Greece holds parliamentary elections • The 84th Academy Awards take place in Hollywood

March • The new intergovernmental treaty for greater fiscal coordination and budget discipline among EU nations is expected to enter into force • Russia holds presidential elections • Poland’s leading party, Civic Platform (PO), celebrates 10 years since its founding • Slovakia holds parliamentary elections • Egypt holds presidential elections

June 16: Poland plays against the Czech Republic at Wroc∏aw’s Municipal Stadium • France holds legislative elections • The Polish Internal Security Agency (ABW) and Foreign Intelligence Agency (AW) mark 10 years of operations

July • The final match of Euro 2012 takes place at Kiev’s Olympic Stadium • Cyprus kicks off its term as president of the Council of the EU • London hosts the Summer Olympics

August • Muslims around the world celebrate Ramadan

September • The 22nd Economic Forum is held in Krynica, Poland

October • Ukraine holds parliamentary elections • Georgia holds parliamentary elections • Lithuania holds parliamentary elections • The Czech Republic holds legislative elections

November • Millions of Poles travel across the country to visit the graves of loved ones on All Saint’s Day • The United States holds presidential elections

April

December

• France holds the first round of its presidential elections

• The first commitment period of the Kyoto Protocol ends • End of the great cycle of the Maya calendar’s Long Count

May • France holds the second round of its presidential elections • The 2012 World Expo takes place in South Korea

June • World leaders meet in Los Cabos, Mexico, for the G20 summit • Euro 2012 matches are held in Poland and Ukraine June 8: Poland plays against Greece at the National Stadium in Warsaw June 12: Poland plays against Russia at the National Stadium in Warsaw

Date uncertain • The Polish Geological Institute is expected to release its estimate of the country’s shale gas reserves • PGE is expected to select the firm which will supply nuclear technology for Poland’s first nuclear power plant • Belarus is expected to hold parliamentary elections • National parliaments of EU nations ratify the new intergovernmental treaty for greater fiscal coordination and budget discipline agreed to in December 2011 ●

www.wbj.pl

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DEC 19, 2011 – JAN 8, 2012

www.wbj.pl

Advertorial feature

Wille nad Zalewem

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A calendar of legal changes in 2011

New public procurement rules

16

New tax laws 17

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LAW IN POLAND BROUGHT TO YOU BY MAGNUSSON

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New laws in 2012: what to expect

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

A

fter so many crucial changes in the Polish Law in 2011, you might expect that 2012 wouldn’t bring so many major amendments in the main fields of law. That is, to some extent, true and is also related to the pause in the parliament’s work caused by the elections in October 2011.

However, due to the victory of the PO-PSL coalition, it is broadly expected that the old-new government will

quickly kick off a set of brave but unpopular reforms in order to save the budget and keep Poland the green island in the stormy waters of the EU’s economic troubles. Not many details of the new laws and reforms to be implemented in 2012 are known, but more than anything an increase in social security premiums is expected, including an increase of the total pension premium back to 8 percent, which is planned as of February 2012.

Tax increases or other regulations aiming to restrict taxpayers from lowering or avoiding paying taxes also cannot be excluded.

The good news But to concentrate on good news for entrepreneurs, it must be mentioned that the second stage of the so-called “deregulation package” is coming into force in January 2012, including a shortening of the limitation period for outstanding social security premiums from 10 to five years. There will also be more elastic rules for employees to use vacation leave, as described in detail in a separate article by Zuzanna Wencel (see page 18).

Also, changes as of 2012 to the

widely criticized rules on income tax advance payments should be seen in a positive light, as entrepreneurs will no longer have to pay a doubled income tax advance payment just before Christmas – there are more details about this in the article regarding tax amendments by Tomasz Rysiak (see page 18).

“A company will be registered and able to legally operate within one day” Another piece of good news for entrepreneurs is the amendment to the Civil Procedure Code as of May 2012.

The highly restrictive separate “commercial procedure” applicable to cases between entrepreneurs will finally be abolished. The change is welcome, as the current rules for commercial procedures are so restrictive that they are often seen as almost depriving entrepreneurs of their constitutional right to seek a judgment in court.

Other changes to the Civil Procedure Code are also positive and include, among other things, a simplification of the appeals procedure and the abolition of certain restrictions to appeals of second instance, amendments to injunctions in copyright disputes and more competence for court assistants in simple cases.

… and more good news But that is not the end of the good news for business. An interesting and revolutionary change has been implemented with respect to setting up a limited liability company. As of January 2012, a limited liability company may be established via the internet.

The company’s founders will have to fill in an articles of association template, available on a government website, and send it via internet after having signed it electronically. A company will have to be registered by the court within one day – this provides a completely new quality on the Polish market.

The standard template will not allow for making any changes; such changes will be possible after regis-

tration and will have to be implemented in the traditional way. This little inconvenience is nevertheless acceptable, taking into account that the company will be registered and able to legally operate within one day.

Another new solution will be brought by the new act on timesharing, which will come into force as of April 2012. The act regulates four new types of timesharing contracts and introduces increased requirements for companies offering timesharing, with special respect to detailed information regarding offered products and services, as well as tools to save clients from dishonest companies, such as the newly regulated right to terminate the contract or restrictions for timesharing companies from demanding certain types of collateral.

Other changes After some confusion this past July caused by the implementation of the Via Toll road payment system, road transport legislation will also undergo changes as of January 2012, when the amended Transport Law comes into force.

Continued on p. 17 ➡

Changes to Polish law in 2011

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

D

espite the fact that we had a general election in Poland in 2011 and the Polish parliament ceased its legislative activity

between mid-September and December, once again approximately 230 new statutes were issued in 2011. This is more or less the same number as in the previous record years.

The number of new acts issued by parliament is huge. Taking into consideration the average length of a statute together with all regulations related to their implementation, one would have to spend at least five whole days every week doing nothing but reading these documents in order to be able to follow the new laws being entered into force in Poland. It has become almost impossible for the average citizen to keep up with even the most important changes in the statutes.

Work in progress Fortunately, the problem of over-production of regulations has recently been spotted by several top authori-

ties in Poland, including President Bronis∏aw Komorowski and Prime Minister Donald Tusk. Several months ago the president declared that he would like to curb the legislative activity of parliament by making it more difficult for its members to institute work on new statutes, for example by increasing the minimum number of members of parliament needed to submit drafts of new acts to parliament from 15, to 46 members.

The prime minister, on the other hand, urged his ministers to concentrate their legislative initiative in 2011 only on the most important acts.

Hopefully he will ask the ministers in his new government to do the same in the following years and will be more successful in convincing his subordinates of how important that is.

Although these methods seem a bit undemocratic, they may be necessary

to reduce the number of new regulations as well as increase the quality and stability of law in future.

Of course no one is saying that the task of reducing the number of adopted statutes is an easy one.

First, Poland is a member of the European Union and is obliged to implement a certain number of directives and other rules issued by the European authorities, which themselves are not very good at limiting their law-making activity.

Around one-fifth of all statutes adopted in 2011 were aimed at implementing European legislation.

Secondly, everyone knows that significant reforms must be introduced in Poland in the next several years and these reforms will have to be implemented by new statutes.

Thirdly, it is obvious that the modern world is becoming increasingly complicated and additional rules

are needed to regulate new occurrences, whether anyone likes it or not.

Let’s hope, however, if the president and the prime minister are persistent enough in their aim to stop over-regulation, they could at least be able to cut down the number of superfluous norms regulating the areas which do have to be regulated or reduce the number of poor-quality norms which sooner or later have to be corrected or explained by new norms.

Continued on p. 16 ➡

In this supplement What to expect in 2012 . . . . . . . . . . . . . . .15, 17 Changes to law in 2011 . . . . . . . . . . . . . .15, 16 Calendar of 2011 changes . . . . . . . . . . . . . . .16 Public procurement . . . . . . . . . . . . . . . . . . . . .17 Perpetual usufruct . . . . . . . . . . . . . . . . . . . . . .17 Business activity . . . . . . . . . . . . . . . . . . . . . . .18 Tax law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 International law . . . . . . . . . . . . . . . . . . . . . . .18

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LAW IN POLAND

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DEC 19, 2011 – JAN 8, 2012

Changes to Polish law in 2011 ➡ Continued from p. 15

Changes important to business For the time being, the best way for an average person to cope with the huge amount of new legislation is to concentrate on the most important issues from one’s own point of view.

So what were the most significant changes in 2011 from the point of view of businesspeople in Poland?

In my opinion, the most important were changes in VAT, deregulation concerning business activity, new rules concerning public holidays, and amendments concerning mortgages and the perpetual usufruct right.

Starting from January 1, 2011 the authorities decided to increase VAT rates to 5 percent, 8 percent and 23 percent, depending on the type of product or service involved, in order to keep public finances under control in 2011 and in the following years.

Although many feared that this step would negatively affect the Polish economy, looking at the macroeconomic indicators for 2011, it seems that the economy coped quite well with the change, as Poland remained one of the fastest growing economies in Europe.

The authorities also took some steps to facilitate business activities in Poland, implementing the so-called “deregulation package” on July 1, 2011. This reduced the number of cases where authorities may demand that businesspeople should provide them with official certificates issued by other authorities. Instead, businesspeople will simply be allowed to provide their own statements to the authorities to confirm the same facts that had to be confirmed by the official certificates before.

A new central register of sole traders was also launched, allowing

individuals who conduct business activities to update their data from any place in Poland and providing the public with easy access to data concerning all sole traders registered in Poland. The new regulation also allows a sole trader to convert a business enterprise into a limited liability or joint-stock company, without losing the rights and benefits connected with this business enterprise.

In labor law, the obligation to make up for a day off when a public holiday falls on a Saturday was abolished, but as partial compensation for employees, a new public holiday (Epiphany, on January 6) was introduced as a statutory day off.

Significant changes affecting real property and banking were also made, due to amendments to mortgage as well as Land and Mortgage Register regulations. The division

between the ordinary and capped (limited) mortgage was abolished. It became possible to establish one mortgage to secure several claims of the same creditor resulting from different legal relations. New regulations concerning priority of mortgages were introduced. However, the most important regulation from the point of view of those who plan to purchase new apartments from developers is probably that which allows the mortgage set by the developer for the whole plot of land (to secure loan financing for the construction of the building) to proportionally encumber individual apartments, after the ownership of individual apartments is separated from the ownership of the plot of land.

Last but not least, the rules concerning the perpetual usufruct right fee have been modified. A perpetual usufruct right is a right to the real

estate, established by the state treasury or municipalities for the benefit of individuals or entities, which has characteristics of both an ownership right and a long-term lease. A significant part of land in Polish cities is held by individuals and entities under this right, instead of under an ownership right. The holder of a perpetual usufruct right is obliged to pay an annual fee whose amount depends on the value of the real estate. Before 2011, the fee could be updated every year, with the scale of the increase being unlimited. From this year on, the fee may only be changed once in every three years and in case the new fee exceeds the current fee by a factor of two, it will come into force gradually.

For other important changes in 2011, please see the accompanying calendar (below) which contains a summary of major changes.●

Changes to Polish law in 2011: a calendar Piotr Bobrowski Magnusson piotr.bobrowski@magnussonlaw.com

January 1: Increase of VAT rates From January 1 2011, VAT rates increased by one percentage point from 7 percent and 22 percent to 8 percent and 23 percent respectively. Moreover, the new VAT rate of 5 percent was introduced. The increased rates will apply until December 31, 2013.

January 1: New public holiday An amendment to the Labour Code introduced Epiphany (January 6) as a new statutory day off. However, the obligation to make up for holidays falling on a Saturday was abolished.

February 20: Substantial amendments to the Land and Mortgage Registers and Mortgage Act come into force The most important changes regard the abolition of the division into ordinary and cap mortgages, the introduction of the possibility of securing a couple of receivables due to the same creditor by one mortgage, or securing receivables due to different persons, provided that they result from financing one investment. Furthermore, an owner of an encumbered property has the right to claim reduction of the amount of the mortgage when its amount becomes excessive and to select one of the outstanding mortgages to replace the expired one. Additionally, one mortgage includes both the principal amount of a debt as well as interests and other costs. The currency of the mortgage is now independent of the currency of the debt.

May 11:

Amendment to the Public Procurement Law This obliges awarding entities to exclude from the contract those contractors with whom the relevant awarding entity has terminated or withdrawn a public contract due to reasons attributable to the contractors (with certain reservations).

May 16:

New International Private Law comes into force The new act covers a broad scope of matters such as incapacitation, personal interests, power of attorney, and relations between consumers and entrepreneurs.

The introduction of regulations concerning intellectual property rights is very significant. When it comes to the

law governing contractual and non-contractual obligations, the new act refers to European Union regulations Rome I and Rome II, respectively. With regard to property rights, provisions concerning the right to some means of transport and objects being transported were introduced.

methods and terms of fixing the currency exchange rate, on the basis of which the whole loan amount is defined. Moreover, the amendment expressis verbis enabled payment of instalments as well as full repayment of the loan in the foreign currency, without causing the debtor any additional costs.

July 1: The Act on Reduction of Administrative Barriers for Citizens and Entrepreneurs (The First Deregulation Act) comes into force The aim of this act is to limit administrative control over establishing business activity and to reduce the number of procedures and administrative obligations imposed on entrepreneurs by the introduction of a considerable number of amendments to a variety of acts.

One of the most significant changes is the abolition of the requirement to obtain from different public administrative authorities around 200 – mostly payable – certificates (now replaced by declarations, which are written by the entrepreneurs themselves). The amendment also reduced some of the official fees, and made it possible for entrepreneurs acting as natural persons to convert into a limited liability or joint-stock company.

September 1: Amendment to the Act of Lobbying Activity in the Law-Making Process This amendment implemented changes to the rules on planning the work of the Council of Ministers. According to new provisions, the government should keep a permanent and up-to-date list of pending legislative works, instead of issuing a list of legislative works every six months. The amendment also made it possible to notify the interest groups not only of the bills, but also of the guidelines for the bills, which enables consultations with the interest groups at the earlier stage.

July 1: Central Registration and Information on Business (CEIDG) is introduced pursuant to the amendment of Act on Freedom of Economic Activity The aim of this change was to create a nationwide system that would enable the keeping records of business activities run by natural persons. As of January 1, 2012, CEIDG will contain information on all entrepreneurs who are natural persons and running a business in Poland. The new system also facilitates the business activities registration process, which is now possible via internet. The hitherto EDG-1 form is replaced by the CEIDG-1 form. To register a business via the internet, one has to use an electronic signature, verified by an eligible certificate or a trusted profile.

August 26:

The so-called Anti Spread Act comes into force The aim of the act, which amends the Banking Law and a number of other acts, is to protect consumers by enabling repayment of a denominated loan in the currency in which the loan was taken. In addition, the act contains the provision that when entering into an agreement concerning a denominated loan or a loan indexed to a currency other than the z∏oty, the contract should contain detailed rules determining both the

September 18: Amendment to the Air Law, which adjusts the provisions of Polish law to various EU civil aviation provisions The aim of these changes is to increase the safety of air transportation, for example by imposing liability on one institution for the safety controls, irrespective of the scope of communication (national, internal, within the Schengen Area, or external). Moreover, the amendment improves the effectiveness of the airports’ management process. It also implements to the statutory provisions the rules for incurring airline fees, as well as a table of fares.

October 9: Changes to the Real Estate Management Act and other acts These modified the rules of the annual fee update with regard to the right of perpetual usufruct. It also extended the number of entities entitled to file an application for transformation of the perpetual usufruct right into ownership rights and lifted the restriction concerning type of a real property that may be subject to such transformation. The time limit for filing the application (December 31, 2012) was abolished.

October 22: Amendment to the European Works Councils Act This amendment came as a result of implementation of Directive 2009/38/WE, which limits the authority of the European Works Councils to transnational matters. A definition of the notification was added, while the definition of the consultation was extended. The agree-

BROUGHT TO YOU BY MAGNUSSON

ments establishing the European Works Councils should be concluded in writing.

October 23: Changes to the provisions concerning the law of succession introduced by the amendment to the Polish Civil Code A new institution of specific bequest, which enables a legatee to acquire particular rights upon the institution of inheritance proceedings, came into force. Such a bequest has to be included in the will prepared in the form of notarial deed. Furthermore, the amendment modified the provisions concerning statutory succession and the executor of the will. As a result, it is now possible to appoint more than one executor.

October 27:

Amendment to provisions concerning outsourcing The amendment grants banks the right to order entrepreneurs to take action within the scope of bank services. The new law extended the definition of the entrepreneur to include partners in a civil law partnership with respect to the economic activities they conduct.

A list of bank services that may be subject to outsourcing agreements was also broadened. The obligation to notify the Financial Supervision Authority about entering into an outsourcing agreement at least 14 days before concluding the agreement was also abolished.

October 27:

Amendment to the Code of Commercial Companies.

This amendment simplified the requirements concerning reporting and documentation in the case of mergers and divisions of companies. The amendment also released companies from the obligation to announce merger plans in the official journal (Monitor Sàdowy i Gospodarczy), provided that the plan is published free of charge on the company’s website one month before the commencement of the shareholder’s meeting.

December 18: The new Consumer Credit Act The new act extended the term for withdrawal from an agreement from 10 to 14 days. In the event that the consumer withdraws from the agreement, he will not bear any costs except for the interest accrued from the day of the credit payout until the repayment date thereof. The act increased the maximum amount of consumer credit to z∏.255,550. The amendment standardized the form of providing information to the consumer, in order to improve the comparability of the offers. ●

LAW IN POLAND

DEC 19, 2011 – JAN 8, 2012

New laws in 2012: what to expect ➡ Continued from p. 15 The new regulations aim to restrict the unfair competition between transport and logistics companies and implement a new system of fines for irregularities detected by Road Transport Inspection. The new system provides for different levels of fines depending on the size of the transport company, which seems to be a much fairer solution than the current system.

There won’t be much news when it comes to regulations of real properties. The main changes will relate to new, much friendlier rules for the introduction of updated perpetual usufruct annual fees, as well as new rules of appraisal of real properties expropriated for road purposes.

Changes are also expected as of the end of 2012 on the insurance market. The European Court of Justice has resolved that insurance companies can no longer differentiate insurance premiums based on the sex of the client.

This will result in a significant increase of premiums for women, who used to pay lower premiums, especially when it comes to life and motor insurances.

Unfortunately, the high hopes related to the previously planned revolutionary changes to the Construction Law and the Spatial Planning Law

ended in disappointment. The crucial amendment to the Construction Law abolishing building permits was finally rejected by the Constitutional Tribunal in May 2011 and will not come into force.

On the opposite side, it seems that after four years of being reworked in the Ministry of Infrastructure, a major amendment to the Spatial Planning Law aiming to abolish decisions on conditions for development (decyzja WZ) and the introduction of socalled “local urban regulations” has been put on the shelf. As a result, no crucial changes to the broadly criticized construction and zoning regulations are expected in 2012, which is not good news for developers.

When construction is concerned, the government’s highway construction program must be mentioned.

After the big boom of road tenders in 2008-2011, the government has cut the ambitious highway construction program in 2011 and as a result quite a few new tenders are expected in 2012.

Although the simplified procedures for road location, construction and expropriation of properties work well, the environmental restrictions imposed by EU are, besides cost, the main obstacle in the development of the Polish highway network. ●

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Public procurement changes: good intentions, but devil lies in the detail percent of the one currently in question.

Trouble on the roads

Igor Hanas attorney-at-law Magnusson igor.hanas@magnussonlaw.com

May 11, 2011 an amendment to the Public Procurement Law (PPL) came into force that expands the conditions under which a contractor may be excluded from a procedure for awarding a public contract.

From the time the amendment was introduced, awarding entities have been obliged to give public contracts pursuant to article 24 of the PPL. Awarding entities are obliged to exclude from the procedure those contractors with whom they have, in previous contract procedures, terminated or withdrawn a public contract. This is provided that the contract was terminated due to reasons attributable to the contractor, the termination or withdrawal took place not later than three years prior to the commencement of the current procedure and that the value of the unperformed contract amounted to at least 5

On

Prior to the amendment, awarding entities were entitled to exclude a contractor solely in cases where a court had passed a final judgement confirming improper performance of a public contract by the contractor.

Nevertheless, lawmakers considered this to be inadequate, hence the change of law. The case which led them to reach this conclusion followed a situation in which Poland’s roads authority, the General Directorate for National Roads and Motorways (GDDKIA), terminated a public contract with a contractor due to insufficient progress on the construction of a motorway. The contractor, which disagreed with GDDKIA’s decision, competed once again for a new public contract for the same road and won it by offering the lowest price.

The new provision was adopted with the aim of preventing such situations from occurring in the future. But how well has it been thoughtout, and will it achieve the desired results? In its current wording, it is rather doubtful that it will be a success.

A question of guilt As a result of the change of law that followed the GDDKIA case, the entities which award public contracts have been given an effective tool that allows them to

exclude contractors from the procedure of awarding contracts for a not inconsiderable period of time.

Previously, this issue had been resolved by a judgement in court (ascertaining guilt of a given contractor), whereas now the awarding entity is able to terminate or withdraw a company from a public contract due to reasons attributable to the contractor (although this does not necessarily mean the contractor is culpable under law).

It is true that the contractor may still defend itself in court and prove that it should be found not guilty in a given situation, but this does not change the fact that the contractor will often be excluded from contract awarding procedures for a three-year period anyway, since court cases of this nature generally last for up to three years. Only if it is able to quickly prove in court that the awarding entity acted unjustly will it be allowed to participate in contract awarding procedures.

Compliance issues Moreover, adoption of the said provision raises concerns about its compliance with those elements of EU law (the Classic Directive 2004/18/EC and the Public Sector Directive 2004/17/EC) that enable the awarding body to exclude a contractor from a procedure for awarding a contract when the contractor has been guilty of grave professional misconduct. This can be proven by any formal means which the

awarding entity must be able to demonstrate (in particularly when a court has found the contractor guilty of improper performance of previous public contracts). The new Polish regulation, by contrast, allows the awarding entity to exclude the contractor even if guilt is not proven.

A way that would allow these provisions to be complied with has not been provided for by the new provision.

Furthermore, a contractor may easily evade this provision by entering the contract awarding procedure as a subcontractor of a contractor that is significantly smaller than they are, providing them with professional knowledge, experience, technical and human potential, as well as financial resources.

As a rule, the public contract will therefore effectively be performed by the same contractor which previously had a contract terminated.

Only this time, the awarding entity will not be able to make the contractor directly accountable for delays.

For the time being, we have a provision which enables the awarding entities, by way of arbitrary decisions (not necessary justified by law), to exclude contractors from the contract awarding procedure. It is also doubtful that this provision is in compliance with EU law.

Although the fundamental aim of the provision seems reasonable, the details of its implementation unfortunately require improvement. ●

New rules for perpetual usufruct fees and the appraisal of real properties Przemys∏aw Kastyak, partner, Magnusson przemyslaw.kastyak@magnussonlaw.com

P

erpetual usufruct is a peculiarity of Polish real estate law that allows the state to maintain ownership of land, while leasing it out to a private entity for long periods of time, typically 99 years.

Indeed, a significant amount of the real estate in Polish cities is owned by the State Treasury or municipalities and held in perpetual usufruct by private entities. These private entities pay an annual fee to hold this right to perpetual usufruct, and these fees have recently become an important issue, since the municipalities, after a dozen or more years of

idleness, have finally begun to update the annual fees to reflect their legally required level, that is, 3 percent of the value of a commercial property (1 percent in the case of residential properties).

The results can be shocking. Typically the update results in an approximately 40-fold increase, which, if the holder of the right does not appeal against it, becomes due by March 31 of the year after notice of the fee update is delivered.

In response to this trend, new rules were introduced as of October 9, 2011. Pursuant to the new regulations, the annual fee may be changed only once every three years and when the new fee is at least twice higher than the current fee, the new fee

comes into force gradually – over a period of 3 years.

In general, that would be good news, but unfortunately the new regulation is inconsistent, making it impossible to unambiguously interpret the schedule for how the new fee should be introduced.

What’s clear is that in the first year after the update notice is delivered, the fee amounts to twice the current fee. In the second year, the fee amounts to twice the current fee plus half of the difference between the final amount of the new fee and the fee after the twofold increase.

But when it comes to the third year, clear interpretation becomes impossible. It is unknown whether BROUGHT TO YOU BY MAGNUSSON

the annual fee should amount to the final amount of the new fee or whether it should be computed in the same way as in the second year. If the regulation is not amended soon, it will lead to an enormous number of disputes between holders of the perpetual usufruct right and the municipalities.

Property appraisal Due to the impressive pace at which new roads are being built, another issue that has come to the fore is that of the appraisal of property expropriated from owners for road construction. On August 26 2011, the rules governing these appraisals was changed.

As a general rule, such properties

will no longer be appraised with reference to transactions of properties designated for road purposes, since in reality there is no free market for such transactions – the current rules were based on the false notion that such a market existed.

Pursuant to the new rules, the expropriated properties will be appraised by reference to transactions of properties similar to the expropriated property, taking into account its usage.

This seems to be much more reasonable and fair solution, although it may cause discontent among owners of expropriated properties, since it is expected that the new rules will mean that the land is appraised at a lower value.●

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LAW IN POLAND

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DEC 19, 2011 – JAN 8, 2012

New private international law Karolina Gutt-Mostowy attorney-at-law, Magnusson karolina.gutt-mostowy@magnussonlaw.com

May 16, 2011, a brand new Act on Private International Law came into force in Poland. The new act replaced the old one, which was dated all the way from November 12, 1965.

Private international law answers the question of which law applies when multiple jurisdictions are involved. Its rules typically apply when a legal dispute has a foreign element such as a party to the dispute being a foreign citizen or in case a contract is signed by parties located in different countries.

Private international law has

On

become hugely important due to the economic growth and international mobility of people and companies.

The need for a new act on private international law was urgent since the old act did not comply will the dynamic growth of modern society and was full of gaps. The new law aims to comply with European Union regulations.

Much wider The act stipulates, in particular, which laws apply in cases of personal law, family, marriage and inheritance, as well as in cases related to companies and business entities, and when conducting contracts and other legal acts.

The new regulation is much wider than the old one; it covers issues relat-

ed to arbitration agreements, intellectual property, power of attorney, moral rights of persons and entities, incapacitation of persons and issues related changes in the value of a currency connected with the amount of a particular debt.

A significant change when it comes to laws applicable to physical persons is the introduction of the concept of a “country of usual stay.” In the case of a person whose citizenship is unknown or who has no citizenship at all, the law of the country of residence will apply, and in case of a lack of residence, it is the law of the country of usual stay that will apply. Moreover, the law of the country of residence or usual stay will also apply to persons who have lost their legal bonds with

their home country due to breach of human rights in that country.

An important change in the new act is that it introduces the possibility to choose the law (Polish or foreign) which will apply to legal relations.

The number of cases when parties are able to choose the applicable law has significantly increased. At present, the parties may decide on the jurisdiction not only when it comes to contracts, but also when it comes to non-contractual obligations such as power of attorney, inheritance or marriage contracts. In order to be valid, the choice of jurisdiction needs to be explicit or clearly result from the circumstances.

The new regulation of the law applicable to power of attorney corre-

sponds to the needs of international business relations. The legal relations of a power of attorney will be subject to the law chosen by the person grating the power of attorney. Before third parties, the proxy may refer to the chosen law only when the third party knew or might have easily known about the choice of the applicable law. When principal has not chosen the applicable law, the law of the country where proxy usually operates will apply.

With respect to contractual obligations, the new act introduces informational provisions which send back to the law of the EU. According to the act, in case of contractual obligations, the applicable law is stated in European Parliament and Council regulations Rome I and Rome II. ●

Business activity in Poland: Polish law going in a good direction Zuzanna Wencel Magnusson zuzanna.wencel@magnussonlaw.com

T

his year brought some significant changes with regard to conditions for business activity in Poland, with 2012 also set to see more changes regarding the activity of entrepreneurs come into effect.

It was Polish lawmakers’ intention to introduce different rules regarding the business activity of entrepreneurs and get closer to European standards, and this led to the introduction of so-called de-regulatory packages. These bills contain a wide range of amendments to many different legal acts. Lawmakers also passed certain amendments to the Freedom of Economic Activity Act.

Changes already in force As a result of the above legislation, the requirement to submit over 200 various certificates to the administrative agencies was abolished. Currently an entrepreneur is able to substitute a relevant certificate with an appropriate statement. That should lower the costs of doing business, since obtaining such certificates requires the payment of a fee.

An administrative agency that demands a certificate from its client has to present a legal basis for such a demand. An abolition in this area includes, among other certificates, those for tax ID and REGON numbers, and certificates on entry to the register of business activity or to the National Court Register. In addition, submission of copies of certain documents, such as public registry records and diplo-

mas, instead of originals, has also become possible.

Furthermore, since July 2011 the costs of registering and making changes in the National Court Register have been lowered for entrepreneurs.

Revolutionary change was also made in the Polish Code of Commercial Companies. Specifically, individual entrepreneurs now have the possibility to register as a one-person capital company – a limited liability company or a joint-stock company.

All of the rights and obligations, permissions, licenses and concessions are transferred to the newly established capital company.

Moreover, procedures in the area of individual business activity have become more customer-friendly. Polish lawmakers have decided to create the Central Register and Information on Business Activity and, as a result,

individual entrepreneurs have the ability to deal with issues regarding their business activity in every commune (gmina) office in Poland and in every district office in the capital city Warsaw. Most of the procedures under the framework of the aforementioned register are carried out electronically, therefore formalities are reduced to a minimum.

Upcoming changes A number of important amendments to different legal acts will also come into effect on January 1 2012. Among other measures, lawmakers have decided to prolong the term for employees to use the previous year’s vacation leave to September 30, instead of the previous date of March 31. The rules on the liquidation of a branch of a foreign business will change significantly as well. In addition, the limitation peri-

od for payment of social insurance premiums will be shortened from 10 to five years, which is definitely favorable for entrepreneurs.

The real innovation is that Polish citizens leading individual business activity abroad will be recognized as a foreign entrepreneurs, enabling them to register a branch or an agency under Polish law.

Some of the amendments already in force are fulfilling their intended functions perfectly, others are however not so effective. Whether the amendments which come into effect on January 1 are going to satisfy hopes set on it is still unknown.

In general, legislators’ attempts to change the conditions for carrying out business activity in Poland should be seen in a positive light, especially since Polish law is still not currently perceived as entrepreneur-friendly. ●

Tax law: some important developments Tomasz Rysiak legal advisor Magnusson tomasz.rysiak@magnussonlaw.com

contrast to previous years, Poland’s parliament has not decided to implement significant changes to the Polish tax system starting from January 1, 2012. The most interesting amendment is a change in the manner in which entrepreneurs have to pay advance tax payments for the final period (month or quarter) of a given tax year.

Before January 1, 2012, the advance tax payment referring to December (or to the last quarter of a given year), was paid at the same rate and according to the same deadline set for advance tax payments that applied in November (or the third quarter of a given year).

This often led to the artificial creation of significant tax costs in

In

November or the third quarter. It also negatively influenced entrepreneurs’ cash flow.

Starting from the beginning of the new year, advance tax payments for all months (or quarters) are subject to similar rules. Consequently, all tax advance payments should be paid by the 20th day of the month following that in which the income was obtained and at a rate calculated for a given month.

Significant rulings Despite the fact that Poland’s parliament has not been particularly active in terms of amending the Polish tax system, taxpayers still had to be updated about ongoing tax developments, since a number of court rulings issued in 2011 have had a significant influence on both the Polish and European Union tax systems.

One issue which was widely discussed during 2011 was that of the

taxation of an employee’s income, and in particular on the taxation of private health care financed by employers. This discussion was finally resolved by a resolution of the Supreme Administrative Court as of October 24, in which the court confirmed that the value of private health care financed by the employer should be considered as part of the employee’s income, subject to progressive income tax rates. Since the amount of an employee’s taxable income is also the base amount for calculating social security contributions, the value of private health care should also be subject to social security contributions.

Another court ruling which deserves a mention is that made by the Regional Administrative Court in Gdaƒsk on January 25, 2011. According to the VAT act, in order to correct the amount of declared VAT, the taxpayer needs to receive confirmation BROUGHT TO YOU BY MAGNUSSON

that the contractor of the taxpayer received the correction invoice. This is particularly troublesome for taxpayers who issue a large number of invoices, in which case the obligation to obtain confirmation of receipt of a correction invoice results in a significant amount of paperwork. In some cases, it may be impossible to obtain all the required confirmations that correction invoices were received. The Regional Administrative Court’s ruling, once again confirmed that such a requirement is not in line with the VAT Directive.

At this moment, the ruling is not yet final. However, since the Supreme Administrative Court has on numerous occasions presented the same standpoint as the Regional Administrative Court in Gdaƒsk, it may be assumed that the Supreme Administrative Court will do so again.

Doubtful debt The final ruling that I will mention is

one which was passed by the European Court of Justice on October 27, 2011. The ruling refers to the issue of VAT implications related to the transfer of doubtful debts for amounts that are below the nominal value of the debt. According to Polish practice, such transactions were viewed as a service performed by the buyer for the benefit of the seller.

Since such a service performed by the buyer was subject to VAT, the buyer of a doubtful debt was not obliged to pay a transaction tax on the purchase of the said debt.

The ruling stated that the transfer of doubtful debt for the value below the nominal value of the debt is not subject to VAT. The outcome of the ECJ ruling means that, under Polish law, the transaction of sale of doubtful debt may be subject to a transaction tax, which causes an additional cost for the parties involved in the transaction. ●

Lokale Immobilia takes a look at the prospects for the Polish real estate market in 2012

Hochtief has received a green light for its Ma∏achowski Square project in Warsaw

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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 •

Developer Retail Provider began cooperation negotiations with Polish State Railways (PKP) over the planned Integrated Communication Center in Olsztyn. The development will combine a shopping mall with a modern train and bus station. The plan is to construct a modern shopping mall comprising 45,000 sqm of gross leasable area, as well as entertainment facilities. The scheme is based on similar projects being carried out in Katowice and Poznaƒ.

Osiedle Ksià˝´ce apartments leased Energomonta˝-Po∏udnie, the developer of the Osiedle Ksià˝´ce neighborhood in Katowice, will lease out apartments in the scheme to companies to use as office space. Currently, there are two- and three-room apartments available to rent. “We are assuming that the decreasing availability of credit [to buy an apartment] will spark growth in the apartment-renting market,” Rados∏aw Kamiƒski, the vice president of Energomonta˝-Po∏udnie’s management board, said in a statement. ●

In this issue Karolkowa Business Park . . . .19 HB Reavis eyes land . . . . . . . . .19 Atrium buys Szczecin mall . . .19 Property market in 2012 . . .20-21 New Hochtief offices . . . . . . . .23 McKinlay malls . . . . . . . . . . . . . .23 Enterprise Park topped out . . .23 Property-related stocks . . . . . .23

Office space

Ablon Group starts construction on Karolkowa Business Park The 12-storey office complex is planned to be completed in May 2013 Developer Ablon Group has launched construction on its Karolkowa Business Park office building in Warsaw’s Wola district. The project, which will cost €20 million, is set to be completed in May 2013, the developer wrote in a statement.

The 12-storey class-A office building will offer 15,000 sqm of usable space with 3,200 sqm dedicated to commercial and entertainment purposes. There will also be 260 parking spaces in an underground car park, as well as 2,500 sqm of green space on the roof and in the surrounding area.

When completed, the scheme will have excellent public transport connections

since it will be sited near the soon-to-be built Rondo Daszyƒskiego metro station, and directly next to bus and tram stops.

“Ablon uses its experience in providing intelligent building solutions, backed by the highest standard of technology and exemplary design. The building will be finished in top quality materials to ensure its efficiency and elegance and flexibility of space arrangement,” Avi Goldenberg, country manager for Ablon, said in the statement.

In addition, Karolkowa Business Park will aim to reduce energy consumption by providing “access to daylight which will prevent the overuse of artificial lighting,” Ablon wrote. Moreover, waste-management systems will be implemented.

Izabela Depczyk

COURTESY OF KOSTRZEWA PR

Retail Provider and PKP in talks

DEC 19, 2011 – JAN 8, 2012, LI 16/50-51

Karolkowa Business Park will offer 15,000 sqm of usable space

Land transactions

HB Reavis interested in Inflancka plot?

The land in question was sold for a record amount in 2006 Slovakian developer HB Reavis is reportedly eying a 2.5-hectare plot in Warsaw which Spanish developer Lubasa previously acquired for a record price of z∏.391 million in 2006. The two companies are in the process of finalizing talks concerning the land, Gazeta Wyborcza reported.

Roman Karabelli, a spokesperson for HB Reavis, said he could neither confirm or deny the report. “All I can say is that this particular site is among several others on our acquisition radar,” Mr Kara-

belli told Lokale Immobilia.

The 2006 sale of the plot in question, which is located on ul. Inflancka on the site of a former bus depot, set a record price per square meter of land in Warsaw. City Hall first decided to put the plot of land up for sale at a price of z∏.155 million.

Developer Echo Investment immediately offered z∏.124 million more than that.

That company and Lubasa then entered a bidding war.

Ultimately, the Spanish developer won, paying z∏.13,600 per sqm, more than twice the average price that was paid for land in Warsaw at the time.

Lubasa was planning a

large residential investment on the acquired plot. However, in 2008 the crisis came and real estate prices fell. The company then wanted to build an office building on part of the land but construction on the scheme was never launched.

If HB Reavis buys the Inflancka plot in the immediate future, it will be the second Warsaw land purchase it will have made in recent months. The company recently signed a z∏.171 million contract with PKP concerning the purchase of land located at the intersection of Warsaw’s Al. Jana Paw∏a II and ul.

Chmielna.

Veronika Joy

Atrium acquires Szczecin mall for €55 million Atrium European Real Estate has acquired the Molo shopping center in Szczecin, Zachodniopomorskie voivodship, from PFCE Soparfi A, a real estate fund managed by CBRE Global Investors.

The value of the transaction, in which Atrium was advised

by Jones Lang LaSalle, amounts to €55 million.

Built in 2000, the Molo development last year underwent a €10 million refurbishment and extension and currently offers over 28,000 sqm of GLA. This includes over 26,000 sqm of

retail space, more than 500 sqm of office space, over 200 sqm of storage space and a 1,200-sqm Carrefour petrol station.

Located close to the Polish-German border, the shopping center is fully leased out with Carrefour and Media Markt being the anchor tenants. Other major tenants in the mall are Polish and international footwear and clothes brands including Deichmann, H&M, TK Maxx, Cubus, New Yorker, Cropp Town and Reserved.

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

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LOKALE IMMOBILIA – REAL ESTATE

DEC 19, 2011 – JAN 8, 2012

Property market in 2012

Real estate developer and investor Rank Progress has sold four undeveloped plots, including agricultural land and roads, in Opole and Zawada, Opolskie voivodship, to IKEA Property Poland. The value of the transaction, in which IKEA acquired a 100% stake in Rank Progress subsidiary Progress VI, which owns the land, amounted to more than z∏.39.3 million.

Goodman builds for Schenker Logistics Industrial space developer Goodman Group will construct a built-to-suit cross-dock facility at its Kraków Airport Logistics Centre for logistics operator DB Schenker Logistics.

Construction on the 6,554-sqm scheme, which Schenker has leased for 10 years, has already launched and is scheduled to finish in May 2012. ●

Mixed prospects for Polish property market Adam Zdrodowski The residential sector’s outlook for 2012 is relatively negative, but the office market is sitting pretty Next year may prove to be difficult for some sectors of the Polish real estate market, but not all of the market’s players need to be equally concerned.

Lokale Immobilia asked leading developers and analysts about the prospects for residential, office, retail and logistics properties in Poland in 2012, and found some difficult challenges in the residential market, optimism in the office market, caution in retail and stability in logistics all lie ahead.

Residential difficulties Next year could be a difficult one for Poland’s housing market. Factors which may have a negative impact on the sector in 2012 include the general economic uncertainty, which

will prevent some buyers from making the decision to purchase, as well as new restrictions to bank lending, said Kazimierz Kirejczyk, president of the management board at residential consultancy Reas.

A new Polish Financial Supervision Authority recommendation coming into force in January 2012 will further

“Next year could be a difficult one for Poland’s housing market” restrict banks’ lending procedures, which will likely make some potential apartmentbuyers unable to take out a mortgage loan. “Demand for new apartments may decrease next year,” Mr Kirejczyk said.

On the other hand, he

noted that those who have creditworthiness or cash at their disposal in 2012 will benefit from a large housing supply and relatively attractive prices. Meanwhile, the expected difficulties will not necessarily hit developers as hard, since many have already started to implement new strategies in preparation for tougher times.

Andrzej Nizio, president of the management board of developer Marvipol, stressed that reasonable development companies have already reduced costs so that they can continue to generate satisfactory margins, even though the prices of residential properties in Poland are relatively low today.

Pre-empting the introduction of new, more restrictive lending regulations and the government’s discontinuation of social programs, such developers have already offered homes at attractive prices

SHUTTERSTOCK

Rank Progress sells plots

Plenty of apartments in Poland could remain empty which will continue to be acceptable to buyers and have even been able to increase their supply, Mr Nizio said.

He added that there are currently strong barriers in the development market to a further drop-off in prices. He noted that labor costs are already very low, there is no possibility to further decrease

the price of construction materials and owners are not willing to lower the prices of land they sell.

Office optimism Prospects are more optimistic for the office sector, which is expected to continue its growth in 2012. Developers and sector analysts point out

CREATING NEW REALITY. We are breaking away from the typical building and renovation company stereotype. Our company is well recognized, experienced and employs professional team of specialists.

Highest quality standards and the ability to always meet deadlines remains the uncompromised benchmark of our workmanship achievements.

Client satisfaction forms the foundation and core value of our business strategy. We know and understand that the expanding Clients’ expectations and needs define the direction in our business sector.

The purpose of our work and service is to turn these into reality. The challenges we face every day are the source of motivation to improve all aspects of our business activity.

General Construction Works Building Installations Systems Comprehensive Interior Finishing Commercial, Retail and Residential Fit-Outs From Initial Concept Drawings to Final Handovers and Documentation Professional and Experienced Teams On time & In budget delivery

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www.neo-swiat.com.pl sekretariat@neo-swiat.com.pl

DEC 19, 2011 – JAN 8, 2012

is now being built.

Konrad Heidinger, a consultant at the research and consultancy department of CBRE in Poland, said there is no major risk of a slowdown

COURTESY OF ADVANCED PUBLIC RELATIONS

that demand for office space in good locations has been on the rise of late and that after a period of low development activity during the crisis years more and more of such space

LOKALE IMMOBILIA – REAL ESTATE

Demand for office space in central Warsaw is expected to remain strong next year

occurring on the demand side.

He pointed out that as opposed to when the global economic crisis hit, tenants today are bracing themselves for more difficult times ahead and as a result are more cautious when signing lease deals.

“This year will likely prove a record one in terms of the amount of leased office space,” Mr Heidinger said and added that in Warsaw’s central business district, which is suffering from an undersupply of modern office space, developers should not have problems with securing tenants for planned schemes.

Jacek Wachowicz, management board member and lease and sales director at Globe Trade Centre was of a similar opinion. “The short- and midterm prospects for growth in the office market in Poland are, even taking into consideration the adverse macroeconomic situation in Europe, quite good and the risk is lower than in the other countries of the region,” he said.

He added that the developer expects demand for office space in attractive locations in Warsaw to remain strong next year and believes the situation in the other large Polish cities will improve. Poland continues to benefit from global cost optimization and BPO sector development trends, which should offset potential cuts in expansion plans of tenants

from other sectors of the economy.

Cautious retail More cautious in the upcoming months may be retail tenants, many of whom already are, in the case of smaller cities at least, carefully analyzing new locations and looking for bargains. Tenants fear that the next year will be risky, in particular for those offering upmarket and non-staple goods, noted Tomasz Górski, a senior negotiator at the retail department of Cushman & Wakefield.

Agata Brzeziƒska, leasing director at Neinver Polska, agreed, saying that increased caution in the market is already visible and was reflected by stable rent and vacancy rate levels in the second half of this year. In 2012, consumers are expected to be less willing to buy, Ms Brzezinska said.

In 2012, the volume of completed retail space is expected to decrease to 300,000-350,000 sqm of GLA, from approximately 650,000 sqm this year. According to Cushman & Wakefield’s Górski, retail parks, which are relatively cheap to built and offer relatively low rents, will be increasing their share in the total supply.

“Due to the limited new retail supply in 2012, retail chains wanting to continue their expansion and increase

their share in the market will be more willing to choose locations in smaller cities or look for space in specialized facilities including retail parks and convenience centers,” Neinver Polska’s Brzeziƒska said.

Stable logistics The end of 2011 did not see a decrease in the lease of logistics space, said Bartosz Mierzwiak, vice president and market officer at Prologis in Poland. However, he admitted that the condition of the European economies and rising fuel prices will have an impact on logistics and may lead to lower demand.

According to Mr Mierzwiak, there should not be any drastic change in demand for existing logistics space in 2012. “Currently, the amount of available space in Poland remains at a satisfactory level of approximately 12 percent,” Mr Mierzwiak said. He added that when it comes to new investments, BTS facilities will continue to be most popular with developers in the upcoming months.

“In the upcoming year, we may witness speculative investments. However, built-to-suit projects commissioned by a particular tenant will prevail.

Developers will continue to focus on the lease of available vacant space and on the development of their existing logistics parks,” Mr Mierzwiak said. ●

www.wbj.pl

21

Point House ready for occupation GN Invest, a special-purpose vehicle belonging to developer Unidevelopment, has officially finished construction of its Point House residential project in Warsaw’s Mokotów district. The development, work on which was started in August 2010, has just obtained an occupancy permit with units now being turned over to owners.

Unilever renews Prologis lease Food, personal care and home care products manufacturer Unilever has signed a lease renewal deal with Prologis concerning 50,500 sqm of space at the latter company’s Prologis Park Piotrków distribution park in central Poland. The transaction, which allows Unilever to stay in the park through 2017, was brokered by Jones Lang LaSalle. ●

LOKALE IMMOBILIA – REAL ESTATE

DEC 19, 2011 – JAN 8, 2012

Restoration and renovation

COURTESY OF NCS

Hochtief to renovate historic Warsaw tenement building

The historic building will offer 14,000 sqm for lease

The investment involves the creation of office and retail space Hochtief Development Poland has been granted permission to launch its mixed-use Ma∏achowski Square project in Warsaw. The development entails the renovation and expansion of a historic tenement building in central Warsaw and is set to offer office and retail space.

The building, located on ul.

Mazowiecka in the center of the city, will be restored. Addition-

ally, a six-storey extension will be built on to its eastern side.

A total area of 14,000 sqm will be made available for lease.

There will also be a two-level underground garage with 100 parking spaces available for tenants’ use. The cost of the investment has not been revealed.

Office space in the building is planned as class-A and will have the “highest quality finishing, state-of-the-art furnishing and equipment,” Hochtief wrote in a statement.

The palace’s facade will be

restored to its “original appearance,” the company said, adding that it will restore extensive window panes on the ground and first floors. The scheme’s extension, however, will not be built in the image of the historic building, although the developer said it will be harmonized with its urban surrounding.

Hochtief added that the historic building’s interior will undergo a thorough refurbishment to ensure it meets the “highest standards in modern office construction.” However, the decorative details of the interior will be preserved and ceiling heights will remain at up to four meters.

Warsaw’s Conservator of Historic Monuments was consulted on the building’s design.

“We are very proud of the opportunity to restore the true historic appearance of that magnificent building,” Piotr Stark, general manager of Hochtief Development Poland said in the statement.

“Ma∏achowski Square will soon become one of Warsaw’s most prestigious locations,” he added.

Izabela Depczyk

www.wbj.pl

23

McKinlay to invest z∏.500 million on building Multi Shop malls McKinlay Development has announced that it will invest z∏.500 million on building a dozen Multi Shop shopping centers, Polish media outlets have reported, citing company representatives. The combined leasable area of the malls will amount to over 200,000 sqm, with the company set to build the first 10 over a period of five years.

One of the biggest will be built near ˚ywiec, in south-cen-

tral Poland. Situated on 10 hectares of land, it will provide around 40,000 sqm of leasable space. The first Multi Shop will be built in Sochaczew, central Poland. The other shopping centers will be constructed in Ciechanów, I∏awa, Sieradz, WrzeÊnia, Jelenia Góra, Wyszków, Skawina, Bochnia, Brzesko and M∏awa.

The projects are to be characterized by easy access, big parking lots, low maintenance

costs and modern architecture.

Each development will also have a section dedicated to DIY products. In Sochaczew, the DIY-dedicated space will be rented by building equipment company OBI. The chain is interested in renting out space in other McKinlay Development investments. Building equipment store Castorama has also expressed an interest in renting space in one of the ID Multi Shop malls.

First two buildings in Enterprise Park Kraków topped out Avestus Real Estate has topped out two of the three buildings that make up its Enterprise Park office and retail development in Kraków.

The investment is the company’s first in the city.

Buildings A and B, which comprise a total of 15,000 sqm of office space, are set to be delivered in September 2012. Ultimately the park will offer commercial and retail space in three four-storey class-A facilities. The structures will include heating, ventilation and air-conditioning installations, security sys-

tems, raised floors, suspended ceilings and areas with strengthened floors for server rooms.

The park will also have a restaurant, a child-care facility and a medical center. The project has already been BREEAM pre-certified, achieving a level of “very good.” “[The] facade and internal systems will be installed as well as other finishing works. ... Besides setting up lanes, walkways, bicycle paths and parking lots around the first two buildings, it will also involve the planting of trees

and bushes,” Arkadiusz Krupa, project manager at Avestus Real Estate, said in a statement.

The site’s third building is set to be topped out in 2013, Maciej Go∏´biewski, the leasing and marketing director at Avestus Real Estate told Lokale Immobilia.

Financing for the project has been secured from Raiffeisen Bank Poland, with the project being developed on a speculative basis. Eiffage Budownictwo Mitex is the general contractor.

Izabela Depczyk

Property-related stocks Security

Closing price on Dec 15

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

73.00

-0.82

64.00

109.20

-29.13

25,530,098

1,863.70

CELTIC

17.50

-7.89

15.55

60.55

N/A

34,068,252

596.19

DOMDEV

28.81

-5.82

23.50

50.80

-35.26

24,560,222

707.58

ECHO

3.31

-0.90

3.22

5.55

-35.35

420,000,000

1,390.20

ELBUDOWA

91.00

-5.11

90.50

170.00

-46.15

4,747,608

432.03

ENERGOPLD

2.00

-6.10

2.00

4.10

-48.72

70,972,001

141.94

ERBUD

16.23

0.81

14.70

61.00

-72.68

12,644,169

205.21

GANT

5.95

-2.30

5.95

17.60

-64.54

20,499,953

121.97

GTC

9.14

-5.77

8.64

24.98

-63.07

219,372,990

2,005.07

HBPOLSKA

0.72

-11.11

0.70

3.20

-77.50

210,558,445

151.60

JWCONSTR

5.38

23.39

4.36

16.96

-68.35

54,073,280

290.91

LCCORP

0.87

-2.25

0.85

1.69

-42.38

447,558,311

389.38

MARVIPOL

8.99

-0.44

7.22

11.00

-17.52

36,923,400

331.94

MIRBUD

2.20

-3.93

2.10

4.75

-48.72

75,000,000

165.00

MOSTALWAR

17.10

-10.56

17.10

62.95

-71.02

20,000,000

342.00

Available usable space – minimum 12,000 sqm

MOSTALZAB

1.27

3.25

1.07

3.05

-57.67

149,130,538

189.40

ORCOGROUP

15.24

1.60

14.19

40.00

-48.34

17,053,866

259.90

Offices located in one building are preferable. Office space located in maximum two buildings is acceptable as long as the buildings are located next to each other.

PBG

69.60

1.53

56.05

215.00

-68.06

14,295,000

994.93

PLAZACNTR

2.02

2.54

1.80

5.15

-54.50

297,174,515

600.29

POLAQUA

5.59

-9.25

5.59

20.60

-69.54

27,500,100

153.73

POLIMEXMS

1.56

9.09

1.23

4.07

-62.41

521,154,076

813.00

POLNORD

13.49

1.05

11.03

35.10

-61.84

23,798,439

321.04

RANKPROGR

8.88

-0.11

8.64

13.60

-15.83

37,145,050

329.85

ROBYG

1.13

0.89

1.04

2.13

-38.92

257,390,000

290.85

RONSON

0.90

-1.10

0.84

1.58

-37.06

272,360,000

245.12

TRAKCJA

1.14

-7.32

1.14

4.12

-73.11

232,105,480

264.60

ULMA

62.00

0.00

57.00

88.00

-24.85

5,255,632

325.85

UNIBEP

5.45

0.00

4.47

10.00

-43.70

33,927,184

184.90

WARIMPEX

3.64

-3.70

3.55

10.89

-60.56

54,000,000

196.56

ZUE

6.80

-8.11

6.80

14.54

-52.28

22,000,000

149.60

Województwo Zachodniopomorskie Acting on behalf of the Zachodniopomorskie Voivod Office we are awaiting offers concerning the lease or sale of office space with parking spaces to be used as new consolidated offices of the Zachodniopomorskie Voivod Office

SPECIFICATIONS CONCERNING LOCATION AND STANDARD OF A POTENTIAL FACILITY: The building is at least a class-B facility Location of the building – Szczecin Availability of the building – from 2015 at the latest Transportation – proximity to major transportation junctions

Preliminary offers concerning the availability of a property specified above (including planned investments) and including, in particular, the rent rate/purchase price per sqm, additional costs, location, availability, transportation accessibility and total area of the property should be submitted by December 29, 2011.

Additional information expected: add-on factor, expected lease period, indexation, currency, terms of the future lease/purchase agreement, availability of parking spaces, potential rent-free period, other incentives, etc.

Offers should be sent to: DS Consulting Sp. z o.o.

Gdańsk 80-266 ul. Grunwaldzka 209

or by e-mail to: biuro@dsconsulting.com.pl More information can be obtained on www.dsconsulting.com.pl or from Anna Drozdowska at (058) 344 44 50, (058) 345 83 04 and (fax): (058) 344 44 49.

24

INTERVIEW

www.wbj.pl

DEC 19, 2011 – JAN 8, 2012

Hungarian-Polish relations

Robert Kiss, the Republic of Hungary’s ambassador to Poland, talks to WBJ about his assessment of the European crisis and its impact on Hungary, the role of Central and Eastern European countries in shaping the European Union’s future and relations between Hungary and Poland Ewa Boniecka: Due to our close and traditionally friendly mutual relations, Poland is particularly concerned about the present economic situation in Hungary. How does your government plan to combat the crisis?

Robert Kiss: The main point is to reduce public debt and the budget deficit, because our financial crisis is generally based on a very uncomfortable atmosphere that has been generated around Hungary. It is a credibility crisis rather than a crisis in a particular area of our economy. Yet credibility is not an objective criterion. If financial markets, or the major players in those markets, want to say that you are not credible, you can do whatever you think is right, but they will still claim that you are not credible.

So I think that the decision of Moody’s to downgrade

Hungary’s credit rating is the result of a general negative approach by financial markets in how they deal with the European financial crisis.

Moody’s took a very strange step because none of the macroeconomic factors in the Hungarian economy support the kind of decision it made.

Hungary still has positive economic growth – at 1.4 percent for the third quarter of this year – its budget deficit is lower than 3 percent of GDP and the government debt has been cut by almost 10 percent.

Yet while pointing to these figures, I am not denying that we are facing serious financial and economic problems. What I want to emphasize, however, is that it is not solely our crisis, but a crisis of the whole EU financial system and also, in some ways, a crisis in the EU’s political domain.

Is your government changing its economic policy to deal with the present situation?

We are not changing our whole economic policy, but are instead adjusting it to the new situation. Our government, which has a two-thirds majority in parliament and still has popular support, is in a comfortable position to implement wide-ranging measures which would speed up the reform of the way Hungary is governed.

One of the priorities is preserving economic growth. Our unemployment rate stands at 10.7 percent, which is average in the EU, but we are taking efforts to reduce it and in recent months we have managed to increase the number of employed by 40,000.

In a situation of rising borrowing costs, the government decided to open talks with the IMF but our idea is not to ask for a loan, but to obtain an agreement about standby credit, providing better security for our financial assets. We are making some cuts to the budget. However, the basic strategy is not to make drastic cuts but rather to increase

SHUTTERSTOCK

A problem of perception

The government in Budapest is unimpressed with Moody’s downgrade of Hungary’s credit rating budget revenues, hence, for instance, the new regulation for higher VAT. Altogether our parliament has adopted dozens of regulations to reduce the amount of money wasted on administration and has presented draft bills concerning reforms to public and higher education, as well as the retirement system. We have already increased the retirement age for women and men to 65 years.

How is the Hungarian crisis affecting economic relations with Poland?

Our relations are a positive surprise. The latest statistics show that until September this year, Polish exports to Hungary were worth €2.6 billion and Hungarian exports to Poland €1.97 billion. Polish exports have increased by 3.2 percent in comparison to the previous year, while Hungarian exports to Poland have grown by 13 percent. So in our mutual economic relations we are going closer to – or perhaps even exceeding – the level of mutual trade which we had in 2008, before the crisis.

Poland is the seventh-largest foreign trading partner of Hungary (the largest for both countries is Germany).

What influence could the Hungarian crisis have on the overall position of Central and Eastern European members of the EU? Let’s stick to the economy. All macroeconomic indicators are better in our region than anywhere else in Europe. When you compare Hungary’s economic position to those of countries in Southern Europe, it begs the question, why do financial markets treat Central and Eastern European members as black sheep? I would like to refer to the recent speech by Polish Foreign Min-

ister Rados∏aw Sikorski in Berlin, because it is high time to make people in the West understand that it was not enlargement of the EU that brought the EU troubles. On the contrary, the Western countries gained a lot of economic benefits from it. And now, when the whole of Europe is in trouble, all members should work in solidarity to escape from this crisis.

Let’s talk about foreign policy.

How can the Visegrad Group, which links our countries, together with Slovakia and Czech Republic, influence European Union policy during this time of change in the way the EU works?

The Visegrad Group is already influencing the policy of the EU, it is not just theory, it is happening, and the Visegrad Group is a very good trademark in the whole of European policy. It proves that the EU’s

“If Poland aspires to the role of leader in our region, it should look at it as a huge responsibility” new members are able to cooperate among themselves and influence Brussels in its thinking about the development of the Eastern Partnership. And I would emphasize that when Poland, together with Sweden, initiated the Eastern Partnership program, it would never have become a part of EU policy without the strong support of the Visegrad Group.

Do you think that Poland should play the role of leader in our region?

Yes, that would correspond with what Minister Sikorski

said in Berlin, that Germany has responsibility and power to change the situation in the EU, and I think that Poland, which has the strength and political tools to organize our region, should play the leading role in enlarging our influence in the EU. I say “organizing,” because I don’t believe in leadership in 19thcentury terms. I believe in leadership in terms of the 21st century, which means organizing, taking responsibility and helping to develop common positions. Let’s remember that the 20th century is over and in these new circumstances leadership means – as the Americans say – “smart power,” which is the combination of different possibilities that are related to the size of a country, its economic position, its historical experience and its bilateral relations with other countries. If Poland aspires to the role of leader in our region, it should look at it as a huge responsibility.

The currency markets are known for putting the forint and z∏oty in the same basket, meaning that when the Hungarian currency loses value, so too does the z∏oty. How do you see this situation and do you think that our countries should adopt the euro at more or less the same time?

I do not see a reason why the forint and z∏oty should be linked. I know that it is a problem for Poland, but the situation is in my view a matter of psychology, because the financial markets do not evaluate our currencies properly.

As far as the problem of accepting the euro by Hungary and Poland goes, I do not think we can harmonize the timing – our countries will adopt it when each considers doing so to be realistic. ●

26

THE LIST

www.wbj.pl

DEC 19, 2011 – JAN 8, 2012

Corporate Services

Catering Companies www.bookoflists.pl

Event types served

Other services offered

844 2,003 1993

WND

Yann Gontard

WND 81.8 77.1 88.2

WND 205.2 188.2 180.7

Indoor field hockey world championship: WND; Filters of Tomorrow (ITM plant open days): 1,000; welcome party for new trainees in Citi Handlowy: 230; BRE Bank (Christmas Eve): 100

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

All types of cuisine

Full food service: on-site canteens; catering; business banquets and conference organization; meals to go; lunch delivery; vending machines; health-care nutrition service; food service for schools

Eurest Poland Sp. z o.o. ul. Jana Olbrachta 94, 01-102 Warsaw 2 22 463-4400/22 463-4444 eurest.poland@eurest.pl www.eurest.pl

WND 80.0 76.0 73.0

WND 80.0 76.0 73.0

Picnic for clothing company: 1,000; Christmas party for fuel company: 900; Christmas party for cosmetics company: 500

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Polish; regional; international; theme

Facility management

WND WND 1993

WND

Robert Modzelewski

Impel Catering Sp. z o.o. ul. Âl´˝na 118, 53-111 Wroc∏aw 3 71 780-9450/71 780-9511 impelcatering@impel.pl www.impelcatering.pl

WND 38.4 45.0 45.7

WND WND WND WND

Symposion (banquet): 500; Marshall’s Office in Wroc∏aw (catering service for trainings and Christmas Eve): 1,200; Wy˝sza Szko∏a Bankowa (catering service for trainings and employee picnics): 3,000

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Traditional Polish cuisine; regional; international; theme

Buffet service; party organization; gift basket preparation and delivery

473 473 2000

WND

Marek Ho∏ówko

P. Dussmann Sp. z o.o. ul. Kurpiƒskiego 55A, 02-733 Warsaw 4 22 827-2290/22 827-2298 dussmann@dussmann.pl www.dussmann.pl

10.5 20.0 18.0 15.0

24.5 48.0 43.2 29.4

Party for University of the Third Age: 170; outdoor event and party for GROM: 550; Pomeranian Medical University (Christmas Eve): 2,000; MEDISYSTEM (employee party): 240; St.Sophia Hospital (jubilee banquet): 200

✓ WND WND

✓ ✓

✓ ✓

WND

Catering for children; catering for welfare centers; banquets; outdoor events; employee canteens

400 200 1993

WND

Pawe∏ Skwarczowski

MCC Mazurkas Conference Centre & Hotel ul. Poznaƒska 177, 05-850 O˝arów Mazowiecki 5 22 721-4747/22 721-4751 kontakt@mazurkashotel.pl www.mazurkashotel.pl

8.1 16.3 15.0 15.0

WND WND WND WND

IBE (scientific congress): 3,000; Business Centre Club (Grand Gala of Polish Business Leaders): 1,800; FM Group (corporate meeting): 2,500; CISCO Expo (trade fair and conference event): 1,100; Ernst & Young (Entrepreneur of the Year Gala): 350

✓ ✓ -

✓ ✓

✓ ✓ ✓

Polish; Mediterranean; French

Sound; lighting; attractions

305 105 2001

Bart∏omiej Czerwiƒski

Andrzej Bartkowski

Art’Impression Catering Sp. z o.o. ul. Kurczunkowska 170, 02-871 Warsaw 6 22 736-2711/22 736-2712 events@ai-catering.pl www.ai-catering.pl

2.5 5.3 4.0 3.6

WND WND WND WND

Special Olympics 2010: 3,000; Polkomtel (picnic): 1,000; Warsaw University of Technology Karnavauli (ball): 800; Ministry of Regional Development (conference): 600; Gaz-System (Easter party): 350

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

Polish; European; international

Arrangements; equipment; technical service; photographic service

80 40 2004

Barbara St´piƒska

Wies∏aw Spodarzewski

L. Zapart Catering Al. Ujazdowskie 24, 00-478 Warsaw 7 22 839-8795/22 839-8795 biuro@zapart.pl www.zapart.pl

4.2 5.0 2.3 4.5

4.2 5.0 2.3 4.5

Inauguration of the Polish EU Presidency in Teatr Wielki: WND

✓ ✓ -

✓ ✓

✓ ✓ ✓

International

Interior design; food-service equipment leasing; waiter services

50 WND 1991

Bogus∏aw Niemiec

Lucyna Zapart

Party Serwis Catering Melon Sp.j. ul. Mineralna 20, 02-274 Warsaw 8 22 644-2811/22 644-7025 biuro@partyserwis.pl www.partyserwis.pl

2.8 4.9 4.5 4.2

WND WND WND WND

Paszporty Polityki: 2,000; AVON (congress): 2,800; AVON (conference): 5,000; Warsaw City Hall Warsaw Uprising: 3,500; Warsaw University of Technology (congress): 6,000

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

International; European

Tents; art direction; photographic service

150 30 1992

Dariusz Oleszczuk

Jan Melon

Agencja Cateringowa Party Sp. z o.o. ul. Rakowiecka 36, 02-532 Warsaw 9 22 849-8597/22 849-8597 party@party.com.pl www.party.com.pl

1.5 2.3 2.5 2.9

1.6 2.4 2.5 2.9

E. Leclerc (banquet): 500; Agora (cocktail): 450; Building Research Institute (picnic): 350; German Embassy (banquet): 250; European Commission Representation in Poland (lunch and coffee break): 250

✓ -

✓ ✓

✓ ✓ ✓

Polish; European; international; theme

Organization of conferences and events; tents; arrangements; equipment; artistic setting; sound

73 17 1992

Robert Kaêmierczak

Ludwika Makowiec; El˝bieta Zielonka

Lunch Service D. Cyran, P. Sobczak ul. 11 Listopada 28 B, 05-816 Micha∏owice 10 22 578-0880/22 213-3010 catering@lunchservice.com.pl www.lunchservice.com.pl

1.2 2.2 2.2 2.5

1.2 2.2 2.2 2.5

ING (Christmas Eve): 580; Canal+ (employee party): 500; Canal+ (Easter party): 550; Bank Handlowy (VIP meeting): 80; TP (prestige meeting): 120

✓ -

✓ ✓

✓ ✓ ✓

Polish; traditional Polish; international

Full service: floral decorations, banquet chairs and tables, tents, waiter services

20 15 1995

Dariusz Cyran

RSVP Kalinowski, Wysocki-Kalinowski Sp.j. ul. Laskowa 18, 05-420 Józefów 11 22 773-7253/22 207-2087 info@rsvpcatering.pl www.rsvpcatering.pl

0.4 1.4 1.2 1.2

0.4 1.4 1.2 1.2

PTO-EXPO (congress):1,800; XVII Locomotive Parade: 500; Warsaw University (graduation): 500; the biggest parachute party in Europe: 250; 4 events of the Chopin cycle: 1,200

✓ -

✓ ✓

✓ ✓ ✓

20 4 2002

Artur Pràtnicki

Sas Catering Krzysztof Kucharczyk ul. Deotymy 58/79, 01-409 Warsaw 12 22 633-0918 biuro@sascatering.pl www.sascatering.pl

0.8 1.2 1.5 1.3

WND WND WND WND

International Congress of Radiation Research: 1,400; Scientific and Training Symposium of Institute of Cardiology: 1,000; event for transport company: 2,000; gala for Ministry of Sport and Tourism: 600; PTHK International Conference: 1,200

✓ ✓

✓ ✓

✓ ✓ ✓

Polish; international; Italian; Mediterranean

WND

15 5 2000

Marek Jagie∏∏o

Krzysztof Kucharczyk

Restauracja Dom Polski ul. Francuska 11, 03-906 Warsaw 13 22 616-2432/22 616-2488 restauracjadompolski@wp.pl www.restauracjadompolski.pl

WND 0.4 0.2 0.2

WND WND WND WND

WND

✓ ✓ -

✓ -

✓ ✓ ✓

Polish; upon request

WND

30 35 1998

Katarzyna Wasilewska

Miros∏aw Wasilewski

Belvedere - Café ¸azienki Królewskie Sp. z o.o. ul. Agrykoli 1, 00-460 Warsaw NR 22 558-6700/22 558-6777 catering@belvedere.com.pl www.belvedere.com.pl

WND WND WND WND

WND WND WND WND

Economic Forum in Krynica: 3,000; Dom Polski for ABC: 2,500; Arabian Horse Days: 1,500; Financial Forum: 350; TVN Foundation Ball: 450

✓ ✓ -

✓ ✓

✓ ✓ ✓

Polish; international; oriental; fusion; upon request

Modern designer catering equipment; complex service

85 25 1991

Dariusz Muçko

Artur Zymerman

Rank

Buffet / Bar / Smorgasbord

Type of cuisine

Total number of catering employees / Full-time employees / Year founded

Banquets with wait staff / Mass events

Largest events catered (2010-2011): Number of participants

Company activity: Catering / Restaurant / Canteen operator

Ranked by revenue from catering in 2010

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

1 Sodexo Polska Sp. z o.o.

Al. Jerozolimskie 172, 02-486 Warsaw 22 338-9600/22 338-9601 info.fms.pl@sodexo.com www.sodexo.com

Revenue from catering (z∏. mln)

Total revenue (z∏. mln)

1st half of 2011 / 2010 / 2009 / 2008

leasing; photographer; site Polish with international Equipment arrangement; party coordination; accents; upon request wedding agency

Chef

Top local executive / Title

Managing Director

Managing Director

President

President

President

President

WND

WND

Board Members

Dariusz Cyran; Piotr Sobczak Owners

Tomasz WysockiKalinowski; Jacek Kalinowski WND

Owner

WND

General Manager

THE LIST

www.wbj.pl

27

Event types served

Type of cuisine

CASA ITALIA Sp. z o.o. ul. Âwi´tojerska 5/7, 00-236 Warsaw NR 22 860-0255/22 860-0255 info@de-signed.pl www.de-signed.pl

WND WND NA NA

WND WND NA NA

Inauguration of Tiziano painting: 250

✓ ✓ -

✓ -

✓ ✓

Traditional Italian cuisine; Polish and fusion cuisine upon request

Full-service catering; wine tasting; conferences; decoration; meal delivery; wine shop

10 12 2010

Piotr Mielcarz

Roberto Guastalla

Kr´gliccy Restauracje i Catering ul. Foksal 17, 00-099 Warsaw NR 22 826-0109/22 826-0109 restauracje@kregliccy.pl www.kregliccy.pl

WND WND WND WND

WND WND WND WND

TVP Telekamery: 750; event for Centrum Nauki Kopernik:1,000; FRONTEX: 600; Edipress Viva Najpi´kniejsi: 300

WND WND WND

WND WND

WND WND WND

All cuisines

WND

WND WND 1988

WND

WND

O5 Sp. z o.o. ul. Wybrze˝e Gdyƒskie 4, 01-531 Warsaw NR 22 560-3733/22 637-1502 ask@moonsfera.pl www.moonsfera.pl

WND WND WND WND

WND WND WND WND

Events for Polski Komitet Olimpijski, Orange, T-Mobile, Plus, TP: WND

WND WND WND

✓ ✓

✓ ✓ ✓

International and original

Event organization; culinary shows and workshops

3 21 2005

Norbert Go∏´biowski

Jaros∏aw UÊciƒski

Restauracje 99 Sp. z o.o.

Al. Jana Paw∏a II 23, 00-854 Warsaw NR 22 620-1999/22 620-1998 restaurant99@restaurant99.com www.restaurant99.com

WND WND WND WND

WND WND WND WND

Events for Maersk, Pfizer Polska, PSI Pharma, Eurobuild: WND

✓ ✓ -

✓ ✓

✓ ✓ ✓

International; fusion; American; Polish

Equipment and furniture leasing; decoration; live music; lighting; culinary shows; culinary lessons; realization of unconventional orders

15 17 1997

WND WND WND WND

WND WND WND WND

T-Mobile rebranding event: 4,000; Germany’s National Day in German Embassy: 850; Russian president’s visit in Presidential Palace: 130; European Economic Congress: 1,000; Polish-German Economic Summit: 700

WND WND WND

✓ ✓

✓ ✓ ✓

Mediterranean; international; oriental; fusion; theme

Decoration; equipment

WND WND 1997

Artur Grajber

Thomas Schoen

UBX Katowice Sp. z o.o. ul. Sokolska 24, 40-086 Katowice NR 32 783-8100/32 783-8103 info@angelo-katowice.pl www.angelo-katowice.pl

WND WND WND WND

WND WND WND WND

European Economic Congress: 1,500; Zjazd Krystyn: 500; Otto Brenner Foundation: 400; memorial of H.J. Wagner: 150

✓ ✓ -

✓ ✓

✓ ✓ ✓

Fusion; regional; international; Mediterranean; Polish

Service; equipment; cutlery

30 30 2009

Piotr Nadolski

Tomasz Piórkowski

Villa Foksal Premium Catering Prominentis Sp. z o.o. ul. Marsza∏kowska 55/73, 00-676 Warsaw NR 22 827-8716/22 826-5337 info@restauracjavillafoksal.pl www.restauracjavillafoksal.pl

WND WND WND WND

WND WND WND WND

OBWE new headquarters opening: 300; Gwiazdy TVN - Politycy: 600; Warsaw Fashion Street Show: 500; World Telecom Day (banquet): 400; Constitutional Tribunal of the Republic of Poland (banquet): 200

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

International with Polish and Italian emphasis

Lighting; sound; art direction

50 40 1992

Grzegorz Wawrzyniak

Pawe∏ Chmielewski

Rank

Buffet / Bar / Smorgasbord

Other services offered

Total number of catering employees / Full-time employees / Year founded

Banquets with wait staff / Mass events

Largest events catered (2010-2011): Number of participants

Company activity: Catering / Restaurant / Canteen operator

DEC 19, 2011 – JAN 8, 2012

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

Sheraton Catering Services ul. B. Prusa 2, 00-493 Warsaw NR 22 450-6100/22 450-6901

magdalena.maciejewska@sheraton.com www.sheratoncatering.pl

Revenue from catering (z∏. mln)

Total revenue (z∏. mln)

1st half of 2011 / 2010 / 2009 / 2008

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

Chef

Top local executive / Title

Owner

WND

Ernest Jagodziƒski Karolina Then-Paszkowska President

General Director

WND

WND

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.

28

MARKETS

www.wbj.pl

DEC 19, 2011 – JAN 8, 2012

Stocks report

world stock indices DJIA

NASDAQ

11,868.81 (Dec 15 close)

S&P500

2,541.01 (Dec 15 close)

-1.07% (for the week)

FTSE100

1,234.35 (Dec 15 close)

-2.13% (for the week)

DAX

5,400.90 (Dec 15 close)

-0.82% (for the week)

-1.51% (for the week)

WIG extends losses

NIKKEI225 5,730.62 (Dec 15 close)

8,377.37 (Dec 15 close)

-2.45% (for the week)

-3.31% (for the week)

CHANGE: 2.52%

CHANGE: -5.07%

CHANGE: -1.85%

CHANGE: -8.46%

CHANGE: -17.82%

CHANGE: -19.08%

(year to Dec 15)

(year to Dec 15)

(year to Dec 15)

(year to Dec 15)

(year to Dec 15)

(year to Dec 15)

52-week high: 12,876.00

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 10,404.49

52-week low: 2,298.89

52-week low: 1.074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,135.79

Andrew Nawrocki, WBJ market analyst The week of December 1216 was another sluggish one for most European stock markets, with the WSE’s main index, the WIG, shedding slightly more than 2 percent. After hopes surfaced of greater fiscal discipline in the euro zone, questions regarding the legal certainty of the pact, as well as a sufficiently strong financial backstop for the single currency, troubled investors.

Monday, December 12, began poorly, after the chief economist at ratings agency Standard & Poor’s dampened moods by stating that a real financial shock would be needed for the euro zone to get its act together. Throughout Europe bourses finished down. Tuesday, December 13, saw further fears from Standard & Poor’s, with the ratings agency warning of a

Major indices WIG

37,637.47 (December 15 close)

WIG20

2,161.32 (December 15 close)

15.12

14.12

13.12

12.12

09.12

08.12

07.12

06.12

05.12

02.12

01.12

30.11

29.11

15.12

14.12

13.12

12.12

09.12

08.12

07.12

06.12

05.12

2,100 02.12

37,000

01.12

2,140

30.11

37,600

29.11

2,180

28.11

38,200

25.11

2,220

24.11

38,800

23.11

2,260

22.11

39,400

21.11

2,300

18.11

40,000

28.11

52-week low: 2,089.84

25.11

Change year to December 15: -21.54%

24.11

52-week low: 36,549.47

23.11

52-week high: 2,932.62

Change year to December 15: -21.01%

22.11

Change for the week: -2.28%

21.11

52-week high: 50,371.74

18.11

Change for the week: -2.17%

Top 5 DREWEX JWCONSTR TUEUROPA PBSFINANSE IGROUP

Closing 0.23 5.38 185.20 0.49 0.49

% change (week) 52-week high 27.78 2.28 23.39 17.00 22.73 222.70 22.50 1.77 19.51 0.86

52-week low 0.16 4.33 145.00 0.32 0.16

Top 5 GETIN POLIMEXMS PGNIG CEZ PGE

Closing 6.92 1.56 4.37 134.00 20.48

% change (week) 9.15 9.09 8.44 3.24 2.20

52-week high 15.29 4.18 4.65 155.00 25.07

52-week low 6.02 1.19 3.25 116.10 15.98

Bottom 5 RESBUD NOVAKBM PRONOX JAGO NORTCOAST

Closing 3.46 13.00 0.10 0.19 0.51

% change (week) -35.57 -31.22 -23.08 -20.83 -20.31

52-week low 3.40 13.00 0.10 0.15 0.50

Bottom 5 KGHM TVN PKNORLEN GTC BRE

Closing 108.40 9.20 35.63 9.14 240.30

% change (week) -12.23 -6.88 -6.21 -5.77 -5.76

52-week high 200.30 18.53 58.85 25.19 357.90

52-week low 105.00 8.90 30.33 8.56 203.30

52-week high 10.94 34.70 1.70 1.14 1.79

Currency report

Euro zone at risk

Other indices sWIG80

8,397.93 (December 15 close)

NewConnect

40.39 (December 15 close)

WIG-Banki

SOURCE: WSE

15.12

14.12

13.12

12.12

09.12

08.12

07.12

06.12

05.12

02.12

01.12

30.11

29.11

28.11

15.12

14.12

13.12

12.12

09.12

08.12

07.12

06.12

05.12

02.12

01.12

5,100

30.11

40.0

29.11

5,240

28.11

40.6

25.11

5,380

24.11

41.2

23.11

5,520

22.11

41.8

21.11

5,660

18.11

42.4

25.11

52-week low: 4,944.19

24.11

Change year to December 15: -21.25%

23.11

52-week low: 40.38

22.11

52-week high: 7,387.49

Change year to December 15: -36.30%

21.11

Change for the week: -0.88%

18.11

52-week high: 63.91

5,800

Investors have not experienced such a volatile December in a long time. Instead of calmly awaiting Christmas, they continue to be bombarded with important data and decisions.

The beginning of the week of December 12-16 proved that investors are disappointed with the EU summit and its outcome. As a result, rating agencies announced they are taking a closer look at the EU countries with possible rating downgrades. Up till press time, no decisions had been made as to which governments would fund the IMF with a total of €200 billion (the Czech Republic, Hungary, Romania, and the UK did not confirm they would help, Russia might).

However, optimistic news came from the US economy,

5,482.80 (December 15 close)

Change for the week: -2.18%

43.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

15.12

14.12

13.12

12.12

09.12

08.12

07.12

06.12

52-week low: 8,397.93

01.12

30.11

52-week high: 12,932.00

29.11

28.11

25.11

15.12

14.12

13.12

12.12

09.12

08.12

07.12

06.12

05.12

8,300 02.12

2,000

01.12

8,440

30.11

2,060

29.11

8,580

28.11

2,120

25.11

8,720

24.11

2,180

23.11

8,860

22.11

2,240

21.11

9,000

18.11

2,300

24.11

Change year to December 15: -31.44%

23.11

52-week low: 2,081.49

22.11

Change year to December 15: -24.05%

21.11

Change for the week: -1.72%

18.11

52-week high: 2,987.72

05.12

2,132.51 (December 15 close)

Change for the week: -2.25%

02.12

mWIG40

possible downgrade to 15 euro zone countries. Though most of Europe closed in the red, the WIG gained 0.30 percent.

Stocks fell further on Wednesday, December 14, with risk aversion gripping investors. In Poland, PKN Orlen saw its share price fall by 3.22 percent. In the news on Wednesday was Getin, gaining over 8 percent after it announced a 50 percent sale of insurer TU Europa to a consortium from Germany and Japan.

On Thursday, December 15, stocks had another mixed day, with KGHM tumbling over 10 percent after details emerged of the new tax on the excavation of coal. The WIG fell nearly half a percent.

Finally, on Friday, December 16, the WIG closed 1.69 percent lower. ●

where macro readings showed an increase in the regional NY Fed and Philly Fed indicators, as well as a decrease in the weekly unemployment claims number to 366,000, the lowest since May of 2008.

The EUR/USD continued its downward path, tumbling to just below the $1.30 level (its lowest since January of this year) and recovering by the end of the week to $1.31.

The z∏oty was hurt by the EU summit outcome, reaching z∏.4.59 against the euro (its highest since May of 2009) and z∏.3.52 against the US dollar. During the second half of the week the z∏oty recovered (EUR/PLN at z∏.4.49 and USD/PLN at z∏.3.44) but as of press time, the chance that the National Bank of Poland would intervene was very high. ●

currency rates 4.4434

4.4872

4.4942

13.12

14.12

15.12

16.12

4.3820 12.12

SOURCE: NBP

4.3572 09.12

0.1100

0.1088 16.12

4

4.4425

PLN-100JPY

5

15.12

0.1101 14.12

0.1092 13.12

12.12

0.1074 09.12

3.7096

3.6842 16.12

0.10

0.1083

PLN-RUB

0.12

15.12

3.7025 14.12

3.6917 13.12

12.12

3.6653 09.12

5.4238

5.3735 16.12

3.5

3.6694

PLN-CHF

4.0

15.12

5.4284 14.12

5.3920 13.12

12.12

5.2959 09.12

3.5066

3.4586 16.12

5

5.3038

PLN-GBP

6

15.12

3.4977 14.12

3.3875

3.4587 13.12

12.12

3.0

09.12

4.5094 16.12

4.5481

3.5

3.4117

PLN-USD

4.0

15.12

4.5642 14.12

4.5600 13.12

12.12

4.5195 09.12

4

4.5255

PLN-EUR

5

30

LIFESTYLE

www.wbj.pl

DEC 19, 2011 – JAN 8, 2012

Event

Rocking in the New Year since 1974, as well as Bracia, who are set to perform a cover of the Queen classic “We are the Champions,” and the singer and poet Maciej Maleƒczuk, also known as the “Bard of Krakow.”

The event will include a fireworks display, with numerous outlets also set to provide refreshments and food for New Year’s revelers.

COURTESY OF FLIKR/POLISH EMBASSY CA

The capital’s historic Pl. Konstytucji will once again be the venue for a free New Year’s celebration organized by the City of Warsaw and Polsat.

The theme for this year’s event, which organizers expect to be attended by as

many as 100,000 people, is the 2012 European soccer championships. For that reason, the 60-by-20-meter stage will be in the shape of a soccer ball, and Polish singer Maryla Rodowicz is set to perform her song “Football Football.”

Other performers include legendary Polish rock group D˝em, who have been a fixture on the Polish music scene

DI

Janusz Olejniczak

Concert

New Year’s Day with Chopin January 1, 12 pm New Year’s Concert – Chopin, Teatr Polonia ul. Marsza∏kowska 56 Warsaw For lovers of Poland’s greatest-ever classical pianist, Fryderyk Chopin, Teatr Polnia will host an evening dedicat-

ed to the legend. Polish pianist Janusz Olejniczak, the man who provided the soundtrack for the Oscar winning film “The Pianist” which told the story of W∏adys∏aw Szpilman’s survival during WWII, will provide the music.

Krystyna Janda will also read fragments of Chopin’s lesser-known private letters, which will provide a perfect backdrop to the piano playing DI of Mr Olejniczak.

For more information log on to teatrpolonia.pl

Event

Maryla Rodowicz

COURTESY OF WIKIMEDIA COMMONS

New Year’s celebration December 31 Pl. Konstytucji Warsaw

All for a good cause The Great Orchestra of Christmas Charity 2012 National Stadium, al. Ksi´cia J. Poniatowskiego 1, Warsaw and various locations around Poland Jerzy Owsiak, who has been raising millions of z∏oty for children’s charities each year

since 1993 with his Great Orchestra of Christmas Charity events, will this year host the 20th anniversary celebration from Warsaw’s newly completed National Stadium.

The concerts and fund-raising events are also set to take place all across Poland, with

numerous stars taking part, although the final lineup is yet to be confirmed. This year’s event will raise money for lifesaving equipment for babies DI born prematurely.

For more Information log on to wosp.org.pl

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (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

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

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

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

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

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

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

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

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

LAST WORD

DEC 19, 2011 – JAN 8, 2012

www.wbj.pl

31

Tech Eye

Ticklish timing and things you can’t have nice analog-y source of info for technophobes, except that you need a degree of technical proficiency to set it up. And the average person able to set up a Little

COURTESY OF BERG CLOUD

Well this is awkward. Not awkward like if your friend’s mom found you in her closet, naked, with a sheep and a giant bottle of hot sauce. Not like that.

The Little Printer

COURTESY OF ALDEBARAN ROBOTICS

Printer is presumably happy enough using, say, a smartphone.

Perhaps we’re being hasty. The device is still in the alpha testing phase, with the beta phase and pre-orders

The Nao Next Gen

IGABYT E

scheduled to begin in 2012. Plenty of time left to come up with a raison d’être.

Or not.

Then there’s the T1132N, which

COURTE SY OF G

What Techeye has in mind isn’t in the Bible under “Reasons Gomorrah Got the Holy Slap Down.” We’re referring to the awkward timing of this column. On the one hand, it’s too close to Christmas to be of much use as gift inspiration, unless you’re like us, procrastinating until the last minute then running around for presents like a kid who’s been freebasing chocolate.

On the other hand, there’s never been a particularly strong demand for “New Year’s Eve” gadget guides. And January’s Consumer Electronics Show is distant enough that the media blitz has not yet begun and fresh info on 2012’s coolest new toys is difficult to come by.

So here’s the deal: most of the items here are left over from previous columns. They’re things which somehow didn’t fit and, anyway, you can’t buy yet.

Not exactly the dregs of Tech Eye, but not exactly not the dregs either.

Let’s start with the Little Printer from BERG Cloud (bergcloud.com), a picture of which has been sitting on our computer desktop for weeks, staring creepily out at us and generally plaguing our dreams until it came down to a choice: write about the damned thing or hack the computer to death with an axe. The former solution seemed less costly.

Its maker describes the Little Printer thusly: “It’s like having your own printing press, newspaper and a dog to fetch it for you, all in your front room.” We’ll add a couple of other descriptors: quirky, cute, inedible, not extremely useful. It can print birthday reminders, daily puzzles, “publications” (specialized RSS streams, basically), to-do lists and so on. It might make a

book/tablet computer from Gigabyte (gigabyte.com), a company which made its name with motherboards for gaming computers but has quietly branched into more complicated products. The firm’s latest boasts an Intel Core i5-2467M processor, an NVIDIA GeForce GT520M 1GB graphics card and an 11.6-inch touchscreen. There’s also an “exclusive rotatable docking station” for when your T1132N just wants to sit and spin.

As it hasn’t hit the market yet and Gigabyte is keeping quiet, there’s no pricing info yet. But somewhere between $1,200 and the price of a homicidal robot is probably a good guess.

Speaking of which, the last item on Techeye’s agenda represents the latest step in Man’s quest to create artificial life which will some day arrive at the perfectly rational decision that the extinction of Man is in everyone’s best interest. Even so, the Nao Next Gen is so adorable that it’s hard to be mad at it. In fact, we want one right Nao. Sorry, that was lame. Anyway, there’s little chance of us getting our grubby, freebased-chocolate-covered hands on one. The Nao Next Gen is only for geeky

sounds like the lovechild of a Terminator robot and Robert Duvall (in George Lucas’ first film, of course). Sadly, it’s not quite that awesome.

The T1132N is actually a hybrid note-

types at the moment – to get one you have to join Aldebaran’s Developer Program, which involves paying a couple thousand dollars, presumably making some kind of intellectual contribution and generally suckling at the teat of nerdliness.

Unfortunately Techeye is financially and intellectually destitute, and too out of shape to impress anyone with an overcompensatingly heroic feat of teatsucklage. Which is a shame, because the Nao Next Gen is pretty cool. It stands 23-inches tall, is equipped with an Intel Atom 1.6ghz CPU and has a vocal-recognition program called Nuance which Aldebaran seems quite proud of.

There’s also “fall manager” software, which helps protect Nao’s sensitive bits when it falls, but most exciting, in our opinion, is the “fist-bump” functionality. This is the first time we’ve ever seen anybody look less natural at the fist bump than us.

And that, Dear Readers, is the kind of awkward which Techeye can appreciate. ●

Ever spent some quality time in your friend’s mom’s closet? Let us know: techeye.wbj@gmail.com

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