WBJ #1 2013

Golden z∏oty

WBJ speaks with Sweden’s ambassador in Poland about relations between the two countries and EU matters

Those who invested in Poland’s currency last year had plenty of cause to cheer

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WWW.WBJ.PL

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VOLUME 19, NUMBER 1 • JANUARY 14-20, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Grounded?

COURTESY OF SKANSKA

REAL ESTATE

Poland’s national airline had big ambitions but, it turns out, even bigger debts. WBJ investigates whether it will survive.

• Self-service hotel • RREEF’s €94 mln deal • Ten years of CEEQA

In this issue

12-13

News . . . . . . . . . . . . . . . . . . . . . . .2-5 Finance & Economics . . . . . . . . . . .6 Business . . . . . . . . . . . . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .11 Lokale Immobilia . . . . . . . . . .14-17 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Family man Prime Minister Donald Tusk has put family friendly policy at the top of his list of priorities for this year 3

SHUTTERSTOCK

Cut, cut, cut Poland’s rate setters slashed borrowing costs for the third time in a row. Are more cuts on the way?

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NEWS

www.wbj.pl

Agnieszka Radwaƒska

Agnieszka Radwaƒska, Poland’s best tennis player, is in top form before the Australian Open, which kicks off on January 14 and could provide the Polish star her first Grand Slam victory. Currently ranked 4th in WTA rankings, Ms Radwaƒska has won two tournaments this year, without losing a single set.

Even though Agnieszka Radwaƒska has been a worldclass tennis player for years now, she usually isn’t considered a favorite at grand slam tournaments. But her recent run has transformed her into

the top contender for the trophy in Melbourne. “Her tactical skills, anticipation, subtlety and general court craft have earned her comparisons with Martina Hingis and she has added another element to those attributes over the last couple of weeks – form,” Reuters wrote regarding her recent performances.

In preparation for the Australian Open, Ms Radwaƒska has played two tournaments and won both. In Auckland she beat Belgiums’ Yanina Wickmayer in the final and in the Sydney final

is the amount of EU funds that have been transferred to Poland since 2007.

4% is the new benchmark interest rate set by the Monetary Policy Council last week.

9.5 million is how many passengers checked in at Warsaw’s Chopin Airport in 2012.

57th is how high Poland ranked in the 2013 Index of Economic Freedom.

Quote of the Week “Ending the round of rate cuts at this stage would be a serious mistake.”

Finance Minister Jacek Rostowski commenting on the Monetary Policy Council’s January decision to cut interest rates for the third consecutive time.

Figures in focus Thinking ahead EU enterprises with innovation activity (% of all enterprises) 80 70 **Highest in the EU27 *Lowest in the EU27

60 50 40 30

Log on to WBJ.pl to read about how and when the world’s economists will raise interest rates. And what does the US debt to China have to do with it?

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The end of cheap finance

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On WBJ.pl

Source: Eurostat

Company index Air France ..................................................13 JSK Architekci ..........................................17 Allianz Real Estate ....................................14 Legends Hotels and Spa ..........................17 Aviva ..........................................................14 Leo Burnett ..............................................14

Calendar

January 15

3RD KGHM TAX AND ACCOUNTING CONGRESS

Event:

The Congress will cover the most important issues in taxes and accounting, news in VAT, forthcoming amendments to PIT and CIT regulations and key changes in IFRS and IAS including their practical implementation in accounting.

Hilton Warsaw Hotel, ul. Grzybowska 63, Warsaw kpmg.pl

Baltona moves to WSE Location:

Baltona, the largest operator of duty free stores in Poland, already listed on NewConnect, will debut on the Warsaw Stock Exchange on January 15. The company will not issue new shares, only existing A to E series shares will be traded.

Baltona group operates 34 stores in 11 locations in Poland, as well as in France, Romania and Ukraine. ●

Jacek Ciesnowski

€35 billion

20

Poland up in economic freedom ranking Poland placed 57th in the 2013 edition of the ranking of economic freedom compiled by the Heritage Foundation and The Wall Street Journal. Compared to 2012, Poland moved up 7 places. Out of the 43 European countries included in the ranking, Poland placed 26th.

she demolished Dominika Cibulkova from Slovakia without losing a single game.

Agnieszka Radwaƒska’s biggest success so far was advancing to the Wimbledon final last year, where she was defeated by American tennis legend, Serena Williams.

Now she wants more. “I’m very happy with my performance, I have been playing my best tennis so far this year and I plan to keep it that way in Melbourne,” Ms Radwaƒska said after her winning streak in early January.

Her biggest rival in Melbourne will be Victoria Azarenka from Belarus, whom she played against six times in 2012, losing every match, including one in the quarterfinal of the Australian Open, which the Belarusian eventually won.

But the defending champion and top seed for the tournament faces health issues before the start of the first Grand Slam of 2013. She has already been forced to pull out of a tournament this year and it is not clear what her form will be like in this year’s Australian Open.

Agnieszka Radwaƒska isn’t the only Pole playing in Melbourne. Her younger sister Urszula, seeded 31st, and Jerzy Janowicz, seeded 24th, will also play in the tournament, as will ¸ukasz Kubot (unseeded).

bo urg

The leader of the liberal Palikot’s Movement, Janusz Palikot, and MEP Marek Siwec have announced the foundation of the Europa Plus Movement, which is meant to froster a discussion on closer European integration.

The politicians said they would start a series of meetings across Poland devoted to European integration and related issues. In February, they will present the program of the new movement to former Polish President Aleksander KwaÊniewski.

Numbers in the News

Lux em

Palikot founds Europa Plus Movement

IN THE SPOTLIGHT

rm an y**

Of the €68 billion assigned to Poland in the EU budget for 2007-2013, the country has already received €35 billion in down payments and refunds, the Ministry of Regional Development announced. This makes Poland the biggest receiver of EU funds, ahead of Spain and Germany which received €17.9 billion and €13.8 billion, respectively. In 2012, Poland certified spending for a total of €55.7 billion and the ministry plans for that to rise to €63.7 billion this year.

JANUARY 14-20, 2013

Ge

Poland received €35 billion in EU funds

SHUTTERSTOCK

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Web:

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INTERNATIONAL CONSTRUCTION FAIR BUDMA 2013

Event:

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

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

Location:

Web:

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THE TAX ASPECTS OF ONLINE MARKETING ACTIVITY

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“GERMANY AS BUSINESS TRAVEL DESTINATION” SEMINAR

Event:

The BPCC Academy: “Online Law” series, a set of five half-day workshops focused on the legal aspects of online marketing, will start on January 17 and finish on February 16. The first event will cover the tax aspects of online marketing activity.

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

Event:

The seminar, organized by the German National Tourist Board, will present Germany as a world leader in various industries, science and new technologies.

Conference Room C, Expo XXI Center, ul.

Pràdzyƒskiego 12/14, Warszawa germany.travel

Location: Web:

Location:

Web:

Avon ............................................................6 Levi Strauss ..............................................14 Azymut ......................................................14 LOT ............................................................12 Baltona ........................................................2 Lufthansa ..................................................13 Bank Millennium ........................................6 MasterCard................................................14 Biedecki ......................................................5 Nordea Bank ..............................................3 Bloomberg ................................................14 Nordea Group ............................................14 Boeing........................................................12 Panasonic ..................................................14 British Airways ..........................................13 Peter Nielsen & Partners ..........................6 BZ WBK ......................................................3 CA Immo ....................................................14 Peugeot......................................................14 Coface Poland ............................................7 PKN Orlen..................................................20 Colliers International ................................14 Polska Telefonia Cyfrowa............................4 Cushman & Wakefield ..............................14 Polskie LNG ..............................................12 Deloitte ......................................................16 Pramerica Real Estate Investors..............14 EC Harris ..................................................16 RREEF........................................................14 Energa........................................................12 Saatchi & Saatchi Poland ..................................14 Ernst & Young..............................................7 SAB ............................................................14 Euler Hermes ..............................................7 Samar ..........................................................7 Export Credit Insurance Corporation ........7 Samsung....................................................23 Fiat ..............................................................6 Siemens ......................................................6 Fulton Innovation ......................................23 Skanska Property Poland ........................14 Ghelamco ..................................................16 Société Générale ........................................6 Globe Trade Center ..................................14 TriGranit ....................................................16 Google ........................................................14 Grant Thornton..........................................14 Tristan Capital Partners............................14 Grupa Azoty ................................................3 Warsaw Stock Exchange ..........................2, 12 GTC ............................................................16 Wyborowa ..................................................14 Jones Lang LaSalle ............................14, 16 X-Trade Brokers ....................................6, 20

NEWS

JANUARY 14-20, 2013

www.wbj.pl

Politics

PM announces priorities for 2013 proposed “Polish Investments” program, which is a huge public spending scheme spread out over the next few years.

The program was announced in October last year and aims to support investments and GDP growth, as well as create new jobs. Assets of selected state-owned companies will be leveraged to provide financing needed to support investments in Poland.

The government will then spend, among other sums, z∏.10 billion to upgrade Poland’s railway system and z∏.19 billion on road construction. Also, z∏.3.2 billion has been earmarked for investments in the gas network and gas storage facilities.

Prime Minister Donald Tusk has announced that the top priorities for his government in the current year will be tackling unemployment, increasing investment levels in Poland and creating family-friendly policies.

“We want to stop the trend of increasing unemployment in the second half of 2013 and to see a decline in unemployment by the end of the year, compared to H1,” said Mr Tusk, adding that the government hoped to create 400,000 new jobs this year.

Is the jobs target feasible?

“Creating 400,000 work places is realistic but nobody has asked the prime minister whether he is talking of gross or net employment. Every year thousands of work places are created but what is important

‘Polish Investments’ a panacea?

The jobs are to be created largely thanks to the government’s

is the net effect, namely the number of new job places minus the lost jobs in that period,” said Piotr Bujak, chief economist at Nordea Bank.

Meanwhile, Piotr Bielski, an economist at BZ WBK, describes the ”Polish Investments” program as “interesting.”

“The government is trying to solve the problems it is facing and to increase investment in the country, but there is a risk that the program might not take off as quickly as the government hopes due to complicated legal processes or difficulties in finding partners,” he added.

Deregulation badly needed

Mr Tusk has ambitious plans for reducing unemployment

Mr Tusk also declared that the government will propose deregulation of labor laws such as an introduction of more flexible work schedules.

He added that this year may be a breakthrough year for many families in several

aspects. The government plans to introduce one-year-long maternity leave, cheaper kindergartens thanks to a z∏.320 million subsidy from the state budget, and an additional z∏.50 million from the state budget for the construction of new day

care centers. The subsidies will be granted only to families with low incomes. The project also includes a higher tax break for a third and then each subsequent child, and reimbursement for in vitro fertilization.

Marta Mardosz

Politics

‘Stalinist’ comparison causes uproar

While reading out his verdict in the case of Dr Miros∏aw G., a doctor infamously arrested for corruption in 2007, Judge Igor Tuleya said that some of the investigative techniques used by prosecutors in the doctor’s case “could remind one of Stalinist methods.”

The judge was referring to marathon interrogations conducted at night, depriving the suspect of sleep. Judge Tuleya also said he would report for further investigation what he deemed “false testimonies” given by witnesses brought forward by Poland’s Central Anticorruption Bureau (CBA) in Miros∏aw G.’s case.

Miros∏aw G. was a well-

Paranoia plus power

COURTESY OF THE OFFICE OF ZBIGNIEW ZIOBRO

Igor Tuleya ruffled some feathers when he compared prosecutorial methods used in a case in 2007 to those employed in the darkest days of Soviet communism

Former Justice Minister Zbigniew Ziobro took offense known cardiologist working in a hospital owned by the Ministry of Internal Affairs before his apprehension. He was arrested by the CBA in 2007 on charges of corruption, namely that he had received bribes from patients and their families.

The sum of z∏.90,000 in cash was found in the doctor’s home on the day of his arrest as well as expensive gifts, the

CBA said were bribes the doctor had received.

The CBA was created in 2006 to fight corruption in Poland. But it quickly started receiving criticism for what its opponents deemed its political nature. It has been described as a political weapon used by Law and Justice, which ruled in the years 2005-07, to battle its political enemies and wage propaganda wars.

Poles taxed dry?

A report conducted by KPMG shows that the real taxation level in Poland is currently set at 35%, just 5% less than in Sweden.

The report analyzed taxes and other deductions from Poles’ income, including social security contributions.

Grupa Azoty going to Africa?

COURTESY OF MSZ

The Polish government plans to spend nearly z∏.30 billion on infrastructure projects and create 400,000 new jobs this year

3

Igor Tuleya’s statements criticizing the CBA and in effect, the justice system in 2007, caused an immediate uproar.

Zbigniew Ziobro, leader of Solidarna Polska, and minister of justice in the years 2005-07, called the judge’s words “unwise” and said he would file for disciplinary action against Mr Tuleya. Justice Minister Jaros∏aw Gowin also criticized the judge saying Mr Tuleya had behaved “inappropriately” but added that he would not intervene in the matter.

But the judge did find some support for his words.

Jerzy St´pien, a retired judge and the former head of the Constitutional Tribunal, said the police methods used in those years were indeed “Stalinist” in nature and that Mr Tuleya had not said anything inappropriate. He said practices such as marathon questionings and depriving suspects of sleep were methods reminiscent of the darkest

days in Soviet history.

Meanwhile, Leszek Miller, head of the Democratic Left Alliance and a former prime minister said that although the Stalin reference was indeed “inappropriate,” the PiS-led government was characterized by paranoia. “Paranoia plus power equals degeneration,” said Mr Miller.

The National Council of the Judiciary of Poland (KRS), a supervisory body for judges, said the media was misquoting Mr Tuleya.

“Between reminding one of Stalinist measures and definitively describing methods as Stalinist is a big gulf,” said Jarema Sawiƒski, deputy chair of the KRS, adding that it would take no disciplinary measures against the judge.

As for Miros∏aw G., he was found guilty by Mr Tuleya’s court and given a one-year suspended sentence. He was also fined z∏.72,000 for receiving z∏.17,500 in bribes.

Remi Adekoya

Grupa Azoty, the secondlargest producer of mineral fertilizers in the EU, wants to open a factory in Kenya, which is the third-largest exporter of roses in the world. Preliminary talks with the Kenyan government started last year but are far from completion.

IMF to extend credit line On January 18th, the International Monetary Fund’s executive board will consider Poland’s application for prolonging its flexible credit line, which was due to expire this month. Currently the FCL amounts to $30 billion.

Polish vodka a hit in the US Poland exported over 12 million liters of vodka to the US from January to September 2012, according to data provided by the Distilled Spirits Council of the United States. Compared to the corresponding period of 2011, volume rose by 15.30%.

Record year for Warsaw Chopin Airport In 2012, over 9.5 million passengers checked in at Warsaw's airport, which is a 2.7% improvement from 2011. This year, however, will probably be worse, the airport's spokesperson Przemys∏aw Przybylski told Gazeta Wyborcza. ●

NEWS

www.wbj.pl

Interest rates

Heyah pulls Lenin ads after protests

RPP cuts rates third consecutive time

The RPP’s decision to cut Poland’s main interest rate by 25 basis points for the third time in as many months came as no surprise to many economists, since inflation and economic activity have declined recently. Industrial and construction output have also remained weak over recent months and annual retail sales growth has continued to run below 3.5 percent. The RPP also points out that in recent months, household and corporate lending growth have continued to weaken.

It is hoped that the cut will support and stimulate economic activity, and eliminate the risk of inflation falling below target. In an official statement, the RPP did not rule out the possibility of further reductions in interest rates if the upcoming data confirm a lasting econom-

Heyah, Polska Telefonia Cyfrowa’s prepaid brand, has ceased a controversial ad campaign featuring communist revolutionary Vladimir Lenin after heated protests.

The ads, in which a Lenin lookalike proclaims the beginning of a “revolution” in phone call prices, aired for only a few days. They immediately sparked public protests about using the image of a man many Poles blame for the deaths of millions of their countrymen who suffered under communism.

“It is irresponsible and trivializes mass crimes and

COURTESY OF WORLD ECONOMIC FORUM

Poland’s Monetary Policy Council (RPP) has cut the National Bank of Poland’s benchmark interest rate by 25 basis points to 4.00 percent

JANUARY 14-20, 2013

their victims,” said ¸ukasz Kamiƒski, head of the Institute of National Remembrance (IPN), an institution that investigates past crimes against Polish citizens.

The public outcry resulted in Facebook pages being created where people expressed their disapproval of the campaign and advised customers to contact PTC and Heyah to express their outrage over the usage of Mr Lenin’s image.

The campaign was successful.

“In view of the unfavorable comments that have been expressed against the campaign, as well as the emergence of ideological

threads in the discussion, we have decided to end [the campaign],” Heyah confirmed in a statement, pulling the ads off the air.

This is not the first case of a company using the image of a communist icon in an advertisement in Poland. In 2005, an image of Ernesto “Che” Guevara was used on the packaging of Tymbark juices and in 2008, an image of the Argentinian revolutionary was also used by Play, another mobile operator, in advertisements. In both these cases, the ads sparked a public outcry.

JC

Marek Belka, president of the National Bank of Poland ic slowdown. However, Marek Belka, the president of the NBP said, “This round of cuts is drawing to an end.” This suggested that the RPP was not certain to cut rates at its February meeting.

The announcement has further strengthened the z∏oty against the euro and the US dollar. Finance Minister Jacek Rostowski, hopes, however, that the RPP will continue to cut interest rates. “I’m happy with the RPP’s decision, and I hope for further cuts in the upcoming months. Ending the round of cuts at this stage

would be a serious mistake, and could have a negative effect on unemployment,” read a press release from Mr Rostowski’s office.

Some economists are not too bullish about further reductions. “I don’t see a majority in the RPP that would want to cut interest rates more drastically than 25 basis points at a time.

For many, the 4 percent level is a barrier that shouldn’t be broken and they might oppose further and bigger cuts,” Jaros∏aw Janecki, chief economist at Société Générale told WBJ. MM, JC

COURTESY OF HEYAH PRESS MATERIALS

4

Heyah’s controversial ad

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NEWS

JANUARY 14-20, 2013

www.wbj.pl

5

Anniversary

Communist leader to be honored?

The Democratic Left Alliance (SLD) wants 2013 to be declared the year of Edward Gierek, who was first secretary of the communist party from 1970 till 1980. The party said it will prepare a relevant resolution to be passed by the Sejm.

At a press conference organized on the eve of the 100th anniversary of Mr Gierek’s birth, SLD politicians said they would form a committee to organize events marking the jubilee. They also suggested that one of Warsaw’s roundabouts should bear the name of the communist leader. This, however, is subject to decisions of the city’s local authorities.

SLD claims that Mr Gierek was unique among the leaders

of communist Poland, as his rule was a time of economic development and investment.

But while it is true that the standard of living increased markedly in Poland in the 1970s under Mr Gierek, most of this was financed by loans from the West, which Poland only managed to finally pay off in October last year.

Year of the family Politicians from other parties were not so eager to support the idea. Commenting on the proposal, Prime Minister Donald Tusk said that 2013 should be named the year of the family, rather than of Mr Gierek, in accordance with the government’s priorities for the year.

“With all due respect to the intentions of all people behind the idea, 2013 should be the year of the family in Poland,” the prime minister said.

Tomasz Na∏´cz, a former communist party member and current presidential advisor, also said he is against the idea,

as is the conservative Law and Justice (PiS) party. The socially liberal Palikot’s Movement has been the only party to support SLD’s idea so far.

Public thinks differently from politicians?

But SLD claims it has public opinion on its side.

The party commissioned pollster TNS OBOP to conduct a survey asking people their opinion of Mr Gierek’s time in power.

As Krzysztof Gawkowski, SLD secretary general, told WBJ, the survey revealed that 54 percent of Poles have a positive view of Mr Gierek’s rule, while 22 percent have a negative opinion. Also, 48 percent are in favor of some form of honoring the communist leader’s memory, while 27 percent are against it.

“This shows that the society thinks that it was not a lost time for Poland,” Mr Gawkowski said.

PiS, meanwhile, wants 2013 to be named the year of

WIKIMEDIA COMMONS

SLD’s proposal to honor late communist leader Edward Gierek is controversial among politicians but may be acceptable to ordinary Poles

Leftist party SLD says Edward Gierek (center) is viewed favorably by Poles the 1863 January Uprising, which happened during the period when Poland was carved up among foreign powers and had ceased to

exist on the map.

Regardless of official resolutions made in parliament, SLD plans its own celebrations throughout 2013, start-

ing with a conference in Sosnowiec, where Mr Gierek was born and is still revered by many, at the end of January.

KW

Legal Forum

Sanctions for not informing of an acquisition Ludomir Biedecki Partner The devil is in the details, or so the saying goes, and this applies to investing in shares as well. A happy smile after a well-placed investment and an expected handsome return could quickly turn into a frown if an investor forgets to comply with certain simple, yet important notification obligations.

According to the Polish Code of Commercial Companies, a firm that has become a holding company should inform its newly acquired subsidiary of the fact that it is now controlled by a new entity. A controlling company, or using the exact language of the Code of Commercial Companies, the dominant company is an entity: • holding directly or indirectly (e.g. through its subsidiary), including on the basis of agreements with third parties, a majority of votes at the subsidiary’s shareholders’ meeting, also as a pledgee or usufructuary, or in its management board; and/or • entitled to appoint or dismiss, also under agreements with

third parties, a majority of members of the subsidiary’s management board or supervisory board (if any); and/or • in which management board members constitute more than half of all members of the subsidiary’s management board; and/or • has a decisive influence on the activity of the subsidiary, in particular but not limited to, on the basis of a management agreement or agreement on the transfer of profits.

The notification made by the newly dominant company should in principle only indicate that control is exercised by a new entity. However, it is advisable to inform which of the above-mentioned criteria has been met. It should be sent to the management board, proxy (Polish: prokurent) or another representative of the subsidiary within two weeks from the date any of the above took place.

Failing to comply with the notification obligation can have painful consequences. If the subsidiary is not notified, the

Code of Commercial Companies makes it impossible for the acquiring firm to exercise voting rights representing more than 33 percent of the subsidiary’s share capital.

If, for example, an investor acquires 66 percent of a firm, it will still only be able to cast votes representing 33 percent of the shares if it has failed to comply with the notification requirement.

The good news is that this sanction is suspended once the subsidiary is duly notified. In other words, once the holding company has complied with its obligations, it will be allowed voting rights equal to the share of the company it owns.

A similar obligation is imposed on a shareholder that has been asked by another shareholder of the same company, a member of its management board and/or supervisory board to report whether it is controlled by or exercising control over another firm holding shares in the company. The reply should be provided within 10 days from

receipt of the request. If the request has been received less than two weeks before the date of a shareholders’ meeting, then the 10-day period runs from the day following the date on which the shareholders’ meeting ends.

The same notification obligations apply to the situation when one company ceases to control another company.

If the investment is made in shares of listed companies the purchaser (whether being an individual or a corporation) should notify both the Polish Financial Supervision Authority (Polish Komisja Nadzoru Finansowego) and the target company every time the threshold of 5, 10, 15, 20, 25, 33, 33.33, 50, 75 or 90 percent of voting rights has been reached or exceeded.

The notification obligation applies also in the case of: • change of the share in voting rights exceeding 10 percent by at least: - 2 percent – in a company listed on the main market of the Warsaw Stock Exchange;

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market.

The content is created in consultation with Warsaw Business Journal's editorial staff.

- 5 percent – in a company listed on another regulated market; and • change of the share in voting rights exceeding 33 percent by at least 1 percent.

The sanction for failing to comply with the above obligation is serious too – the acquirer will not be able to use the full voting rights representing the share acquired, depending on the threshold breached.

For example, if an investor held 3.5 percent of voting rights and purchased 1.5 percent in a subsequent transaction, that investor would not be allowed to vote from this 1.5 percent. In this case, a late notification will not lift the sanction.

Acquisition transactions are usually well-documented and if assisted by professional advisors investors should not worry about the requirements discussed here. These requirements should be remembered, however, since failure to comply entails serious negative consequences.●

6

FINANCE & ECONOMICS

www.wbj.pl

JANUARY 14-20, 2013

Unemployment

Z∏oty a great investment in 2012

Jobless rate to rise in 2013, say economists

The Polish currency offered the largest total return gains amongst world currencies last year

Analysts expect Poland’s already high unemployment rate to go up this year

In 2012, the z∏oty proved a good investment, gaining 14.99 percent against the euro in total return terms according to a ranking compiled by Bloomberg. It outperformed the Hungarian forint, which made a 13.95 percent gain against the euro, and the Turkish lira, which registered a 13.36 percent gain.

Total return calculates an investor’s profit plus the interest rate differential between currencies.

The main reason for the strong performance of the Polish and Hungarian currencies are the high interest rates in both countries. In Poland, the benchmark interest rate is currently set at 4.00 percent, while in Hungary it is 5.75 percent.

At the other end of the ranking was the Japanese yen, which depreciated 12.12 percent against the euro and the Brazilian real, which registered a 3.68 percent loss.

A double-edged sword Jaros∏aw Janecki, chief economist at Société Générale, told WBJ that in 2013, the z∏oty could grow stronger. “Interest rates in Poland are still high.

SHUTTERSTOCK

Currency

The z∏oty, like interest rates, remains strong Lowering them below 3 percent could weaken the currency, but I don’t see the Monetary Policy Council doing that.”

“I can see euro dropping below z∏.4 by the end of 2013,” he said, adding that “even with the Polish economy slowing down, the projected figures, like GDP growth, are higher than in most EU countries, and that will keep attracting foreign investments.”

But a strong currency is not solely good news for Poland.

On one hand it attracts foreign

capital and lowers the value of the country’s foreign-currency debt, but on the other it dampens the competitive edge of Polish exports.

With this likely in mind, Finance Minister Jacek Rostowski told the Senate last week that he does not expect a “a significant appreciation” of the z∏oty in 2013. “At the end of 2012, the z∏oty was 4.08 to the euro. At the end of this year, we expect it to be 4.05,” he said.

The unemployment rate in Poland at the end of December 2012 stood at 13.3 percent compared to 12.5 percent a year earlier, according to the Ministry of Labor. And while the government’s budget assumptions put the jobless rate at 13 percent by the end of 2013, experts are less optimistic.

Monika Zakrzewska, an expert at Lewiatan, an employers association, said in a press statement that Poland will probably end 2013 with a higher unemployment rate than 13.3 percent.

“The first months of this year will most certainly bring a further deterioration on the labor market and a rise in unemployment. Even before the end of the previous year many companies, such as Fiat, Avon, Siemens, announced plans for group layoffs in 2013,” Ms Zakrzewska said.

These negative trends, however, should be reversed in the second half of 2013, she said.

This will be thanks to new

work-time laws and an anti-crisis package intended to attract more foreign investment.

Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers, also expects the unemployment rate in 2013 to reach higher than 14 percent, as both the seasonal and economic cycles are contributing to its increase.

“It is possible that in early spring, the unemployment rate will be over 14 percent,” Mr Kwiecieƒ said, adding that if the Polish economy grows slower than its potential, unemployment will surely rise.

This means that a rise in employment figures may only be expected some time after Poland’s economy starts moving faster again, possibly in KW, JC 2014.

Over 14 percent unemployment?

Meanwhile, Grzegorz Maliszewski, chief economist at Bank Millennium, told WBJ that the unemployment rate will surpass 14 percent in January 2013 and will be at least that high at the end of the year.

“A change in the negative trend is possible in the second half of the year at the earliest,” said Mr Maliszewski, adding that improvement may be fueled by the launch of projects financed from the state-funded “Polish Investments” program.

Rising tide in unemployment Jobless rate in recent years 15 12 9 6 3 0 2008

2009

2010

2011

2012 Source: Coface Poland

Jacek Ciesnowski

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

Release from court costs in bankruptcy proceedings On January 8 the government adopted draft legislation that should make it possible for indebted entrepreneurs to submit an application to court for a release from the court costs in proceedings regarding a declaration of bankruptcy.

Faster indemnification for persons deprived of real property On January 4, 2013 the parliament accepted a draft of amendments that concern establishing indemnification for persons who have been deprived of real estate by way of a decision on permission for performance of a road investment with immediate enforceability. Upon an application of a person authorized to receive indemnification for the real estate, it will be possible to pay out an advance payment of 70 percent of the indemnification, as agreed by the relevant authority, within 30 days upon the date of submission of the application.

Abolition of provisions discriminating against the disabled On January 8 the president signed a change

to the act on environmental protection and the act on professional and social rehabilitation as well as the employment of disabled persons. The changes are aimed at abolishing limitations for disabled persons with assisting dogs to enter national parks and wildlife sanctuaries as well as to beaches and bathing beaches.

Lack of basic regulations for recruitment to kindergartens and public schools On January 8 the Constitutional Tribunal recognized the motion of the Ombudsman concerning the lack of statutory regulations concerning recruitment to kindergartens and public schools. The Constitutional Tribunal stated that the regulations concerning criteria and procedures with regard to accepting children to schools and kindergartens in the ordinance issued without sufficient statutory basis, is against the Constitution.

The charged provision will cease to be binding after 12 months have passed from the day of the publication of the verdict in the Journal of Laws. ●

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BUSINESS

JANUARY 14-20, 2013

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Bankruptcies

Over 1,000 companies to go bankrupt in 2013?

More than 1,300 businesses will go under this year, experts predict In 2012, 941 companies went out of business in Poland, the most since 2004, according to Euler Hermes. What’s worse, the number of bankruptcies might be even higher in 2013.

Analysts from the Export Credit Insurance Corporation (KUKE) predict that the number of insolvencies will

exceed 1,300 in 2013. The worst period will be the first two quarters of the year, the KUKE report predicts.

Last year was particularly tough for construction companies, as 259 of them declared bankruptcy between January and November, among them firms that built highways and stadiums for Euro 2012.

But construction wasn’t the only sector that fell on hard times last year. Numerous companies in the machinery,

foodstuffs and transport industries also went out of business.

The sales sector also suffered.

The biggest reason for the recent wave of bankruptcies is companies’ lack of liquidity.

The number of reported unpaid receivables has been growing since Q3 2011. By Q3 2012 it was double what it had been at the beginning of 2008, which is when the current economic downturn started, reports Coface Poland.

Percentage of bankrupt companies by sector, Q1-Q3 2012

Production 28% Construction

21%

Sales Other 23%

24% Transportation

Jacek Ciesnowski

Source: Coface Poland

Polish auto industry at six-year low

Investments

Poland more attractive than UK for investors The CEE’s largest economy is viewed favorably by international finance A 2012 analysis of the investment attitudes of 500 international decision makers by Ernst & Young found that 10 percent favor Poland as a destination for large investments in Europe, ahead of the UK by 2 percent. The most popular destination in Europe is Germany, with 35 percent favoring the continent’s economic powerhouse.

Even though the UK is currently Europe’s top destination for foreign direct investment in terms of the number of projects, based on E&Y’s figures from 2011, Germany could overtake it within two years.

However, the attractiveness of a market for potential investors doesn’t necessarily translate into actual investments. In 2011, Poland’s share in the number of FDI projects in Europe was only 3 percent.

Germany and the UK’s share were 15 percent and 17 percent respectively. Usually it takes

many years in gestation before FDI projects are announced and completed. Potential investors who think that Poland is an attractive country, may invest here in the future, provided it will sustain its attractiveness in the coming years.

In 2012, despite the economic crisis, Poland noticed a 6 percent increase in FDI compared with 2011, reports the Polish Information and Foreign Investment Agency (PAIiIZ). In 2012, it oversaw 53 projects worth a total value of €1.2 billion, which were

Poland a major exporter of furniture Poland is a world power in furniture exports, placing fourth, after China, Germany and Italy, according to Jacek Twaróg, president of the national association of furniture makers.

Last year, Polish furniture exports totaled $9 billion. Some 90 percent of Polish furniture production is exported, mostly to Germany.

Dropping like flies

4%

7

expected to create nearly Favorable destinations Most attractive countries in 10,000 new jobs.

Among the completed Europe for investors projects the majority were 35 financed by investors from the US (15 projects), then Japan 30 (7), Germany (6), and the UK 25 (5). The main sectors for investment are BPO (19) and 20 automotive (18). In addition, PAIiIZ is currently working on 15 155 investments worth a total 10 value of nearly €5 billion, with most of the projects coming 5 from companies from the US, Germany, the UK and China. 0 Germany Poland UK Russia France Jacek Ciesnowski

Spain

Source: Ernst & Young

In 2012, less than 636,000 cars and trucks rolled out from Polish factories, the lowest number since 2005.

December production reached 38,100 automobiles, a 33% drop year-on-year according to industry expert Samar. In annual terms, the country’s 2012 automotive production is down 23% compared to 2011. Experts believe the sector’s troubles will ripple through to the broader economy. ●

8

INTERVIEW

www.wbj.pl

Polish - Swedish relations

WBJ sits down with Staffan Herrström, Sweden’s ambassador to Poland, to talk about his country's view on possible cuts to the next EU budget, its attitude towards changes in the EU, areas of cooperation with Poland on European policy and bilateral relations between the two countries Ewa Boniecka: The [November] EU summit which was meant to decide the next EU budget ended in failure. How do you asses this development from a Swedish point of view?

Staffan Herrström: Honestly speaking, I am not sure that it was a failure, although it would obviously have been much better if a compromise had been reached. We have had several very difficult negotiations in the EU in the last decades – not only about the budget, but also on other issues, and in all cases the EU has eventually managed to achieve successful outcomes.

So I don’t think it is necessary to see that [November] summit as very dramatic.

I definitely believe that it is important to reach an agreement, which means that the EU budget for 2014-2020

should be kept within reasonable limits and be focused not least on growth and innovation. Only growth-oriented dynamic measures will be able to move the EU economy forward in this time of crisis.

The Swedish economy is one of the strongest in the EU. You have had positive GDP growth and are not suffering from a crisis. Yet Sweden, along with Britain and other net-payers, formed a coalition that pushed for cuts in the EU budget. What happened to solidarity with poorer EU members and member states affected by the crisis?

There are various groups holding different positions on different issues with regards to the budget. Sweden strongly believes that one of the major purposes of the EU budget is

to provide solidarity to poorer, less fortunate member states.

For example, there are strong arguments in favor of a cohesion policy directed towards less developed regions, including regions in Poland.

But we must remember that a large part of the EU budget – almost 40 percent – is still used for the Common Agriculture Policy and Sweden does not believe that this is the best way to spend our taxpayers’ money. And it is definitely not the best way to speed up growth in Europe. There are arguments backing change in the agricultural policy, that it needs to be reformed and the costs reduced. Talking about cuts, we have to remember that the first proposal of the EU Commission meant a real increase in expenditures in the next budget period by 7 per cent. That number was reduced in the following proposals, but it is still quite a lot in a situation where most of members need to implement difficult decisions to limit their budgets at home.

Will Sweden stay in a coali-

COURTESY OF THE SWEDISH EMBASSY IN POLAND

Hardly Poles apart

Staffan Herrström, Sweden’s ambassador to Poland

JANUARY 14-20, 2013

INTERVIEW

JANUARY 14-20, 2013

tion with other EU net payers in the budget debate at the next summit?

We were cooperating with that group of countries and I believe that this cooperation will continue. As net-payers we are engaged in this process, because of the responsibility of our governments to look after our own taxpayer’s money – to make sure the money is spent wisely and on growth-enhancing measures.

Sweden is not in the euro zone. What do you think of the further integration of the euro zone, the banking union and the idea of establishing a separate budget for euro zone members?

All those issues are now being debated. It is important for Sweden, as it is for Poland, that decisions about the euro zone, which do affect all of us through, for example, the single market, are not made without other non-euro EU members.

Sweden and Poland initiated the Eastern Partnership program, which now seems to be lacking EU interest. What do you make of that?

The European Union would definitely like the Eastern Partnership to move forward with all the partner countries.

In several ways it still is. It is making progress in Moldova and Georgia, for example – significant progress in fact.

Ukraine has also continued to declare its ambition to integrate with Europe even if there are obvious obstacles there, relating to core EU values, which are crucial elements in the Eastern Partnership. Definitely it is in the interest of Europe to continue its mission of spreading democratic values and to integrate the Eastern European countries, which want to join EU, as well as the Western Balkan states, into the European economy.

What is Sweden’s attitude towards possible changes in EU’s political architecture, such as deeper integration, which is rejected by some members?

Sweden is in favor of further integration in the EU. However, it is important not to rush ahead as there are still important measures which have not yet been implemented. Over the past years, many decisions have been made in order to improve the economic governance of the union. Those measures need to be implemented first. I am mainly referring to the Six Pack, the Fiscal Compact and the Twopack. We should make sure that those decisions are implemented, rather than making some long list of new measures which need to be introduced.

The fundamental framework is partly already there, and the important continuous devel-

opment of the single market is also ongoing and should be sped up. Also, it is important that great attention be given to the democratic legitimacy of the EU. At all times citizens need to be on board when leaders move towards deeper integration. Poland, as one member state, has suggested some innovative ideas on how to deal with this question.

But regarding further enlargement of the European Union, the original enthusiasm seems to have waned ...

The fact is that Croatia will become an EU member this year. Recently, Serbia gained the status of official EU candidate, so enlargement is still taking place. Historically, enlargement of the EU has been a great success. It is a core idea of the European Union to spread peace and democracy in Europe. I have been to the Balkans and I have seen what the prospect of EU integration has meant for those countries. Without it, we would not be witnessing the democratic changes that are currently going on there today.

Relations between Sweden and Poland are traditionally good and our countries never look back to our wars in the 18th century. How are our ties developing now?

Swedish-Polish relations are developing very dynamically in all fields. I would like to point to the state visit of our King Carl XVI Gustaf to Poland in May 2011, which was a manifestation of our close friendship. During that visit a declaration on mutual cooperation was signed, and cooperation has really sped up. There are daily contacts between Poles and Swedes working on the Eastern Partnership and the Baltic Sea Strategy. We cooperate on security and defense policy. There are a number of Swedish people of Polish origin who are doing very well in all areas of life in Sweden, which also strengthens our social ties. Currently, 1,000 young Swedish people are studying mainly at medical universities in Poland, and over 300 Poles are studying in Sweden through the Erasmus program.

What about trade?

Our trade is developing very positively and its value has doubled since 2004. In 2011, it exceeded €7 billion and the balance is almost 50-50 in import and export on both sides. In the same year – 2011 Sweden was number five among foreign investors in Poland. Even with the slower economic development in the EU, there is huge potential for increasing trade between Sweden and Poland. There are opportunities in the clean tech sector, particularly when it comes to energy and other

environmental issues. Better waste utilization, and especially, waste-to-energy solutions have enormous potential in Poland. There are substantial monetary gains to be made for Poland in this sphere, according to some estimates even z∏.4 billion.

Sweden is a model for Poland in developing our family oriented policies and we envy Sweden for its excellent health and child-care systems, as well as the promotion of women in the workforce. What is the basis for success of your system?

The welfare system can function well only when there are strong incentives for women and men to be active on the labor market and thus provide the tax base for welfare which is needed to fund public services.

Additionally, any system needs to be incrementally and continuously improved in order to face new challenges. If a system is misused and it has negative effects on public finances, the government should do something about that, as we did during our financial crisis in the 1990s. The high level of female employment is a key asset for the economy and is clearly facilitated by the access to high quality and affordable child care, as well as the sharing of parental responsibilities between women and men, not least through shared parental leave, that is, increased paternity leave. Gender equality is smart economics. One of our Ministries recently conducted a study which shows that EU GDP could increase by as much as 27 percent if women played a more active role in the labor market in the entire EU. Yet now one of the main problems in the EU is high unemployment. Both men and women cannot find work in many member countries.

Young people are bitterly disillusioned about the political and economic establishments in the European Union, what is your view?

It is not surprising that people get disappointed in these difficult times, but the majority of people value the freedoms of the EU more than they despise the drawbacks – for example the freedom of movement across the EU and the possibility of finding jobs in countries other than their own, which may not be struggling as much with unemployment. The European Union, which was rightly awarded the Nobel Peace Prize in 2012, is needed for all of us, richer and poorer members, and we should seize the moment to consolidate our efforts to make it a better functioning union of states – in the spirit of solidarity and common responsibility for democracy, peace and security on our continent. ●

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9

OPINION & ANALYSIS

JANUARY 14-20, 2013

www.wbj.pl

11

Will more integration save Europe’s social model?

Daniel Gros

A

t high-level gatherings of the European Union elite, one often hears the following type of statement: “Europe must integrate and centralize economic governance in order to defend its social model in an age of globalization.” European Commission President José Manuel Barroso and his counterpart at the European Council, Herman Van Rompuy, are particularly keen on this argument.

But the claim that only deeper EU integration can save the “European” social model from the onslaught of emerging markets is not true. Yes, globalization represents a challenge to all EU member states; but it is not clear how more integration would help them to confront it. More European economic governance is not a panacea.

Which model?

In fact, it is not even clear which European social model needs to be saved.

There are enormous differences among EU members in terms of the size of their public sectors, the flexibility of their labor markets, and almost any socio-economic indicator that one can think of. The common elements that are usually identified with the

“European” social model are a quest for equality and a strong welfare state.

But neither of the main problems confronting Europe’s social-security systems – slow economic growth and aging populations (a function of low fertility) – can be addressed at the European level. This is obvious for fertility, which is determined by deeper social and demographic trends that cannot really be influenced by government action. And, while aging could be transformed into an opportunity if the elderly could be made more productive, this requires action at the national and societal levels, not more European integration.

It is understandable that European leaders talk so much about globalization, given that the European economy is rather open for its size, with exports amounting to about 20 percent of GDP, compared to just 12 percent in the US. The (re-)emergence of big economies like China is thus bound to have a greater impact on Europe than on the US.

emergence of new growth poles abroad does more harm than good to an economy. This can happen if the new economic powers are more important as competitors than they are as customers. But this does not seem to be the case, even with respect to China. The EU does have a bilateral trade deficit with China, but it also exports a lot to the Chinese market – much more than the US does.

More importantly, even if one accepts the view that globalization constitutes a threat to Europe’s social model, there is little scope for further integration, given that trade policy is already fully unified at the EU level.

In any case, the EU has generally contributed constructively to all major rounds of global trade liberalization.

With the EU helping to keep global markets open, European exports have held up rather well, with the EU maintaining its market share.

Although it has lost ground relative to the emerging markets (especially China), it has far outperformed other developed economies like the US and Japan. This is true even in services, despite slow productivity growth

More harm than good Economists long ago recognized that it is theoretically possible that the

in Europe. It is thus wrong to assume that economies based on cheap labor are massively outcompeting the EU. Moreover, this relatively good trade performance has been achieved with a much lower increase in wage inequality in Europe than in the US. The various European social models have thus been, on average, quite robust – most likely because of the absence of a master plan from Brussels on how to respond to globalization. Each member country has had to adapt in its own way, knowing that it could not bend the rules of the game in its own favor. Not all succeeded; but the successes (Germany, for example) far outweigh the failures (see Greece).

Growth is the key The key to ensuring the future of Europe’s social security systems, and thus its social model, is faster growth.

And, again, it is difficult to see how more Europe would improve the situation. The obstacles to growth are well known, and have existed for a long time without being removed.

The reason is quite simple: if there were a politically easy way to gener-

ate growth, it would have been implemented already.

Moreover, most national policymakers have a tendency to blame “Brussels” for all of their difficult choices, thus creating the impression at home that the economy would improve if economic affairs could be managed without EU interference.

More integration is preached at the European level, but implicitly portrayed at home as an obstacle to growth.

This double-speak on the part of national political elites is perceived as such by voters, whose trust in both national and EU institutions is naturally declining. The claim that Europe needs more integration to save its social model has long lost credibility.

Integration is irrelevant to that question, and, in those areas where deeper integration really would benefit Europe, it appears to be the last thing that national leaders want. ● Daniel Gros is Director of the Center for European Policy Studies.

Copyright: Project Syndicate, 2013. project-syndicate.org

The euro zone’s agenda in 2013 Edmmond Alphandéry

E

uropean Union leaders concluded 2012 with a landmark agreement that places all euro zone banks under a single supervisor.

But the difficult negotiations that led to the agreement eclipsed European Council President Herman Van Rompuy’s recent report, “Towards a Genuine Economic and Monetary Union,” which calls for unity far beyond a banking union. Although “no door was closed,” in the words of European Commission President José Manuel Barroso, EU leaders have clearly refused, at least for now, to hold a serious discussion about deeper integration.

Mr Van Rompuy’s report raises a fundamental question: What factors are preventing the euro zone from functioning as everyone would wish?

Answering this question requires, first and foremost, a comparison of the dynamics at play during the euro’s first decade, 1999-2009, when the euro zone ostensibly performed well, with those of the last three years, which have been marred by crisis.

Controlling the levers At first, the euro zone seemed to function like a true currency union:

capital-market integration was accelerated; cross-border activity increased; and the per capita income gap between member countries decreased. But, unlike in a complete currency union, such as that of the United States, euro zone members retained full financial sovereignty, meaning that they controlled all of the levers of macroeconomic policy.

Without external constraints, public and private expenditure grew precipitously in many countries on the euro zone periphery, while wages rose faster than productivity. As these countries posted currentaccount deficits, northern European countries accumulated currentaccount surpluses, exposing a widening competitiveness gap.

In a genuine currency union, wealth transfers and automatic stabilizers mean that such discrepancies do not pose a problem. With the euro zone as a whole benefiting from a relatively solid balance-of-payments position, European leaders initially failed to foresee the risk incurred by letting competitiveness differentials grow, and underestimated the threat posed by some countries’ accumulation of significant external debt.

Indeed, for 10 years, north-to-south income transfers and lending financed excessive aggregate demand, making the euro zone seem stable. As markets underpriced risk in order to lend to increasingly indebted countries, pressure on interest rates diminished.

Flaw exposed The global financial crisis exposed the euro zone’s underlying flaw.

Meanwhile, international bodies, including the International Monetary Fund and the G-20, encouraged struggling countries to implement loose fiscal policies, claiming that they were needed to overcome the crisis. But fiscal stimulus merely aggravated the problem.

Financial investors soon recognized that risk had been underestimated in some countries, causing interest rates to rise, sometimes to unsustainable levels, as in Greece, Portugal, and Ireland. While the decline in aggregate demand led to reduced imports, the combination of higher interest rates, lower public expenditure, tax increases, and wage deflation boosted unemployment and triggered recession.

Normally, by decreasing prices

relative to their more fiscally sound neighbors, struggling countries can boost exports, thereby reducing their current-account deficits. But, in the case of the euro crisis, price stickiness caused inflation to increase more in debtor countries than in creditor countries, making adjustment even more painful.

Shock absorption In this context, Mr Van Rompuy’s report is crucial. It maps out the architecture needed to “guarantee the minimum level of convergence required for the EMU to function effectively,” and calls for a more integrated financial, budgetary, and economic policy framework. Specifically, the report highlights the need for the euro zone to make two fundamental commitments.

First, euro zone countries must implement reforms aimed at boosting wage and price flexibility through enhanced competition and improved labor and capital mobility within and between member countries. Second, wealth transfers to peripheral countries, while controversial, are necessary.

To surmount the associated political hurdles, euro zone leaders must

create a limited “fiscal capacity,” which should act as a “common but limited shock-absorption function” that would “contribute to cushioning the impact of country-specific shocks and help to prevent contagion across the euro area and beyond.” This mechanism should also provide financial support for structural reforms through “limited, temporary, flexible, and targeted financial incentives.”

But Mr Van Rompuy’s minimal proposal may be insufficient. Currency unions require a mechanism for permanent transfers to poorer regions. The EU budget should facilitate such transfers in the euro zone, using structural funds. Tax transfers should also act as an automatic stabilizer in the case of asymmetric shocks.

Such reforms undoubtedly require a much more politically integrated, or federalized, euro zone. ● Edmond Alphandéry, a former French finance minister (1993-1995), is president of the Euro 50 Group.

Copyright: Project Syndicate, 2013. project-syndicate.org

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COVER STORY

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LNG terminal gets extra financing Polskie LNG said that its EU grant for building the ÂwinoujÊcie LNG terminal has been increased by nearly z∏.100 million, from z∏.456 million to z∏.551.8 million. The total cost of the project, which is set to be completed in 2014, is estimated at z∏.2.6 billion.

Inflation to hit RPP target According to predictions made by analysts, prices in Poland increased around 2.5% in December, reaching the target set by the Monetary Policy Council (RPP) for the first time since September 2010.

Experts feel this could be a long-term trend this time.

Treasury working on Energa IPO Poland’s Treasury Ministry is seeking a legal advisor for the planned IPO of Energa and it will soon also begin looking for a financial advisor.

Treasury Minister Miko∏aj Budzanowski earlier said the company could make a debut on the Warsaw Stock Exchange as early as mid-2013. The offer will involve selling part of the Treasury’s stake and possibly a new issue. ●

JANUARY 14-20, 2013

Airlines

A LOT of trouble

Mark Ordon

2013 will be a makeor-break year for LOT With one of the most modern fleets on the continent, Poland’s state-owned air carrier LOT had dreams of conquering the skies. Instead it now needs millions in state aid to survive.

Waves were made back in November 2012 when the first Boeing 787 Dreamliner in Europe was delivered to LOT. The new aircraft was the first of eight to join the airline’s fleet as a replacement for the outdated Boeing 767s.

The airline will pay significantly higher lease payments for its new toys when compared to the old planes, as much as z∏.900,000 monthly according to data obtained

by Forbes from an unnamed source. Still, the same source claims that a transatlantic flight with the 787 will bring z∏.150,000 more in ticket revenue, with savings on fuel costs on service to New York running z∏.50,000 to z∏.60,000.

Also, LOT was heavily advertising the fact that its Dreamliner is the very first on the continent. The national carrier promised it would make good on its claims to take advantage of this particular window of opportunity to strengthen its position on North American and Asian destinations, especially considering heavy competition from Lufthansa, which already has a fleet of larger B747s and will have its own Dreamliners by spring.

COURTESY OF WARSAW CHOPIN AIRPORT

12

Poland’s national air carrier needs z∏.1 billion to stave off bankruptcy Wake-up call Today though, the facts do not paint an optimistic picture.

The company is in deeper trouble than any new airplane can fix. LOT has asked the government for as much as z∏.1 billion in aid to get back on its feet, starting with a z∏.400 million tranche to pay off current obligations, which was recently paid out.

Marcin Piróg was promptly dismissed from his post as CEO after Treasury Minister Miko∏aj Budzanowski blamed him directly for the state of affairs at the airline. The board of directors designated Zbigniew Mazur, in charge of financial affairs, to assume leader-

ship of LOT until a new CEO is appointed. His top priority for now is the implementation of restructuring measures to get the airline out of its fiveyear-long losing streak.

Airspace is a battlefield Of course, it was no secret to industry experts and analysts that the Polish national airline is in dire straits. Just as the shining Dreamliner was touching ground at Warsaw’s Chopin Airport, transportation expert Adrian Furgalski firmly stated in a radio interview that there was no chance that the new 787s would save the Polish airline.

He agreed that the new

plane will save money and provide more comfort, but noted that presenting eight new aircraft as the only solution was clearly an overstatement. Mr Furgalski also pointed out that no progress has been made in terms of privatization and with time, the company is becoming less and less attractive for any investor with its whopping z∏.150 million loss in 2011 and no hope of getting out of the red this year.

Analysts also doubted the success of the strategy presented by then-CEO Marcin Piróg, who insisted that having the first Dreamliners on the continent “will allow us to move from a slightly defensive posi-

tion to the offense, since we have a product which is definitely better than what the competition has. The second airline to receive a Dreamliner in Europe is British Airways – and they will have the plane 9 months later than LOT.” The problem here, though, is that while LOT will in fact have the 787s waiting to take passengers to North America and Asia, it will have a hard time expanding its domestic and European service. That in turn is needed to bring in passengers to the hub in Warsaw, since customers from the capital or other Polish cities alone are not enough to fill the seats on transatlantic flights.

COVER STORY

JANUARY 14-20, 2013

Another major issue is that the network of flights from Europe to the US, China or Japan is a battlefield with players much mightier than LOT. The competition has better transfer hubs and bigger fleets.

Airlines the likes of Air France, British Airways or Lufthansa can easily bring in passengers from a number of regional air-

www.wbj.pl

Ms Marciszewska noted that air carriers from the Persian Gulf are targeting the region. Moreover, Norwegian is announcing the launch of an inexpensive transatlantic service using their fleet of Dreamliner 787s, not to mention LOT’s Star Group partner Lufthansa, which is gradually increasing its presence at Pol-

“2013 will be a difficult year for the Polish aviation industry”

2013 not looking too rosy In an interview for PRTL.pl, El˝bieta Marciszewska, a professor at the department of transportation at the Warsaw School of Economics said that the economic outlook will not help LOT. “2013 will be a difficult year for the Polish aviation industry. It is difficult to assess whether the new Dreamliners alone will be effective enough to promote long-haul service. Will LOT manage to intercept transit traffic, especially in the lucrative business and premium classes?”

ish airports. The traffic to and from the US could increase if visa-free travel for Poles were to be approved, but LOT shouldn’t count on filling its premium and business class seats here.

What’s next?

The Treasury Ministry has agreed to provide the national airline with financial aid in exchange for some radical changes in its operations. As part of this, LOT is set to implement job cuts that would see at least 600 people lose employment. These cuts are expected to save the company as much as z∏.300 million annually.

According to Rzeczpospolita, the reductions would mainly affect the company’s ground staff. The national air carrier will also

COURTESY OF MSP.GOV.PL

ports. Besides, says Marek Serafin, editor-in-chief of the PRTL.pl aviation web portal, these airlines use larger planes, such as the Airbus A380 or the Boeing 777 for intercontinental service, in which the per-passenger cost is much lower than that of the 787.

Polish Treasury Minister Miko∏aj Budzanowski is pushing LOT to restructure reduce the number of flights operated and the Embraer 170 and Boeing 737 aircraft used by LOT would be returned to the leasing company. All in all, the reductions could bring in savings of about z∏.600 million annually.

That may not be enough, says aviation expert Sebast-

ian GoÊciniarek. He recalls how during the past year, LOT sold off nearly all of its assets to avoid bankruptcy, so it has nothing more to liquidate. The situation is difficult, he says, but it is hard to assess how difficult, since LOT has not disclosed much data over the past few months. Dziennik Gazeta

Prawna obtained insider information suggesting that the z∏.1 billion promised will not solve all the problems.

LOT is a bottomless pit, one employee familiar with the company’s financial situation was anonymously quoted as saying and added that in 2012, the company sold real estate, stock and shares in

13

subsidiaries for z∏.900 million, which it managed to quickly spend. Mr Furgalski strongly feels that nothing will save a company that has been bringing losses year after year and suggests that LOT should very simply declare bankruptcy.

Yet the Polish government, as the major shareholder of the national airline, remains optimistic as to LOT’s future. Treasury Minister Miko∏aj Budzanowski presented three available options: bankruptcy and liquidation of the carrier; privatization; or restructuring followed by privatization. He said that the State Treasury chooses to go with the third option. As a result, LOT will receive the needed financing and a detailed plan for farreaching restructuring will be prepared, which will include headcount reduction and trimming of non-profitable destinations and outdated machines. Only after that phase is complete will the Treasury return to the search for a suitable strategic sector investor, who would retain the LOT brand name once the company is privatized.

Will they succeed this time around? Or will LOT join the likes of Hungarian national carrier Malev and become a page in aviation history? 2013 will likely be the year we find out. ●

Richard Hallward talks about CEEQA’s 10th anniversary celebration

The first self-service hotel in Warsaw will open this spring 16

17

LOKALE IMMOBILIA

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

Residentialoffice complex in Praga Office buildings of 8, 19 and 25 storeys and apartment buildings of 7 to 9 storeys will form a new residential-office complex planned in the area of ul.

Ostrobramska and ul.

Kokoryczki in Warsaw’s Praga Po∏udnie district.

The developer – Azymut – is currently preparing for land development. The complex will comprise 397 underground parking spaces and 515 on the ground. The start date for investment has not been disclosed ●

In this issue Colliers to manage two properties . . . . . . . . . . . . . .14 Skanska sells office complex .14 CEEQA 10th anniversary . . . . .16 Warsaw’s first self-service hotel . . . . . . . . . . . .17 Property-related stocks . . . . . .17

WFC and Platinium Business Park get administrator Colliers International has won tenders to manage two prestigious office buildings in Warsaw – Warsaw Financial Center (WFC) and Platinium Business Park The 24-storey Warsaw Financial Center is one of the signature high-rise buildings of the Sródmiescie district skyline, standing 144 meters high. Situated at the intersection of ul.

Emilii Plater and ul. Âwi´tokrzyska, in the vicinity of the Palace of Culture and the Central Railway Station, it attracts top-rank tenants such as Bloomberg, Google, SAB, Wyborowa and MasterCard.

The complex comprises

50,000 sqm of leasable space and is one of Warsaw’s prime office addresses. Its purchase last August was one of the biggest office transactions in in Europe in 2012. A joint venture between Allianz Real Estate and an investment fund managed by Tristan Capital Partners acquired it from CA Immo and Pramerica Real Estate Investors for €210 million.

Platinium Business Park is a mixed-use complex located at the intersection of ul.

Wo∏oska and ul. Domaniewska, in the very heart of the Mokotów office district. The property, comprising six classA buildings and containing 56,000 sqm of space, is located in the immediate neighborhood of Galeria Mokotów and has a 98 percent occupan-

cy rate. Allianz Real Estate Group acquired it from Globe Trade Center for €138.8 million in late October 2012, making it the thirdlargest office-complex deal in Poland last year. Aviva, Saatchi & Saatchi Poland, Leo Burnett, Panasonic, Levi Strauss and Peugeot, are among the current tenants in the building.

“Property managment is one of our key businesses. We currently manage 700,000 sqm of commercial space in Poland and over 1 million sqm all over Central and Eastern Europe. In the last three years, we have won tenders to manage 30 buildings,” said Monika Rajska-Woliƒska, managing partner at Colliers International in Poland.

Karolina Kowalska

COURTESY OF COLLIERS

“We forecast investment volumes in the region to be marginally ahead in 2013, with Poland continuing to be the clear leader,” Charles Taylor, Partner at Cushman & Wakefield said, commenting on investment activity in the core Central European markets. According to a Cushman & Wakefield report, Poland, the Czech Republic, Hungary, Romania and Slovakia significantly increased their investment activity in Q4 2012 to €1.8 billion, almost matching 2007 levels, and much more than the €536 million invested in the previous quarter.

Skyscrapers

Colliers will manage Warsaw’s iconic office building-WFC

Offices

RREEF makes multi-million euro purchase The real estate investment fund has acquired Nordea House and Green Corner in Warsaw's Wola district for €94.6 million The last days of 2012 brought another multi-million euro office deal, as RREEF bought Nordea House and Green Corner complex from Skanska Property Poland for €94.6 million. The newly completed investment consists of 27,000 sqm of total leasable area and is located in Warsaw’s Wola district, near the second line of the city’s subway, which is currently being built. The scheme, located at the intersection of ul. Ch∏odna and ul. Widok, already provides access to

public transportation such as bus and tram lines.

Its first tenants moved in late December after the deal had been sealed. One of the biggest contracts, for 7,600 sqm, was signed with Nordea Group, which will occupy Nordea House. Other tenants of the glazed-facade property are Grant Thornton and Jones Lang LaSalle. Green Corner, meanwhile, has been fully leased to one of the Polish central administration authorities. Nordea House and Green Corner are managed by Jones Lang LaSalle.

Colliers International was the exclusive agent in the sale.

According to Waldemar Olbryk, president of Skanska Property Poland, the complex was quick to find tenants after completion because of Skanska buildings’ reputation as

attractive workplaces and great investment opportunities.

Both Nordea House and Green Corner have been LEED pre-certified with the

highest Platinum rating and feature ecological solutions.

Skanska Property Poland is currently constructing another office scheme in Warsaw, Atrium 1, which is sup-

posed to be the greenest building in Poland. The 15storey scheme will provide 18,000 sqm of leasable space in March 2014.

Karolina Kowalska

COURTESY OF SKANSKA

Poland CEE investment leader

JANUARY 14-20, 2013, LI 18/01

The newly completed complex comprises 27,000 sqm of office space

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

16

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

JANUARY 14-20, 2013

Media patronage

th

CEEQA 10 anniversary This year is the tenth anniversary of CEEQA, do you have anything special planned to commemorate this milestone?

Richard Hallward: We’re working on a lot of interesting ideas, on the business content side of things as well as on the bright lights and hospitality side. Our first priority is always the business delivery, the “why are we doing this and who are we doing it for?” question. In a sense we, alongside the Financial Times, are fighting so the “post-communist” group of countries in this part of the world can present their case for commercial real estate investment to the international arena in a thoughtful yet attractive manner. That mission is driving all our thinking and development, particularly so for the year ahead.

Can you mention any specific plans yet?

We like to stage our announcements carefully for buildup so I can’t give too much away yet.

On the awards side, I can say there will be one or two “best of the decade” awards decided from past winners of CEEQA awards between 2003 and 2013, which should be interesting as well as some fun. We’re also announcing a new award for Building of the Year Southeast Europe, which we think is the right move to make now as we factor in future ideas about the direction of the market place and try to strengthen CEEQA’s appeal to companies active in the SEE markets.

CEEQA is well known for providing top quality entertainment. Who have been the standout performers? And what do you have in store for 2013?

That’s a difficult question, we have a lot of favorites. Gloria Gaynor was a bit special at last year’s CEEQA@MIPIM reception. At the Gala, I think Bananarama and Sister Sledge were probably the most memorable. A lot of people liked

CEEQA founder Richard Hallward, says the CEE real estate market has gone through an important “normalization” process over the past four or five years dawn. I can’t mention our 2013 plans specifically yet but, in keeping with our campaign theme, we want to bring back some of the best highlights from the past decade as well as some new surprises, but it’s still too early to release details. It should be fun.

“10 years ago in Eastern Europe [business events] were outstandingly drab” lunch for all past and present jurors, partners and sponsors.

This should bring a few old faces out of the woodwork.

Are you stressed out about the CEEQA Gala this year?

Terrified. But also excited. I can’t reveal too much yet except that it will be in a very different location to previous years, in a purpose-built building at the Royal ¸azienki Park in the center of Warsaw, walking distance

But if we go back to the beginning, what were your aims when you came up with the concept for the first ever CEEQA awards, and did you expect that you could make it the success that you have done over the 10 years?

I did and I didn’t. The aim was always to create a positive, world-class showcase for the sector on the international stage. Let’s be frank, business events can be a little drab and 10 years ago in Eastern Europe they were outstandingly drab.

On a brief visit to the region to assist on an event in Prague, it didn’t take me long to figure out there was a gap in the market for something like this and everything has been geared around making it happen. The journey itself wasn’t a walk in the park, but if you ask any of our numerous sponsors who have been alongside us since day one, they will tell you I walked into their office one day and gave them that vision.

Audiofeels a few years ago. The Errol Linton blues jam in the champagne reception two years ago was a personal favorite while Tara McDonald and Klaudia Kulovic were also great three years ago.

Wet Fingers last year was a risky call as they’re more club land than corporate land but they did a spectacular show with Nick Sinckler and Ewa Jach and it was the first time we really got the crowd dancing till

COURTESY OF CEEQA

What about the events themselves, CEEQA has quite a reputation to live up to. Any exciting plans?

We’re having a lot of fun planning the bright lights side of things. One of the most inter-

esting developments is our CEEQA@MIPIM event at the global real estate fair in Cannes in March, 2013. The event was a big success for us last year but next time round we will not only announce the awards short list, we will also present our four CEEQA RealGreen awards for green building investment and services at the reception. And the reception itself will be preceded by a whole afternoon of panels called “Back to the Future – The next ten years for the CEE & SEE property markets.” This fits in with our theme for the year but also adds a lot of content as well as showcase value for our sector, which we’re excited about.

Additionally, in the preamble to the CEEQA Gala in April, we will have an annual dinner and final meeting of this year’s jury as usual, but we will also host a special anniversary

from the Hyatt hotel.

This is partly why we’ve slowly moved the CEEQA Gala to later in the spring, to bypass the cold weather. It will probably cost a little more but will give us the freedom to do what we want and how we want, with as much space as we want so we can make sure everybody has a good view of the awards ceremony and entertainment and there is plenty of space to party or to talk in private. It will be closer to our vision of what the CEEQA Gala should be and will hopefully build on its reputation as one of the best business events in Europe.

COURTESY OF CEEQA

Lokale Immobilia sits down with Richard Hallward, managing director of Imagine Live Media and founder of CEEQA, to talk about plans for the event this year and some of the most memorable moments in CEEQA history

Last year’s CEEQA Gala

CEEQA has been a visionary player on the CEE real estate market over the last decade, helping to predict trends and foresee major changes before they happened. What further challenges and developments do you expect over the next 10 years?

As I said, retrospection and crystal-ball gazing is a natural choice as a theme for the anniversary year, but in any case this is a very good time to be taking stock and doing

some crystal-ball gazing.

We’re probably on the tail end of an almighty financial and economic storm yet, by and large, certainly in the CEE markets, the past four or five years have been the most important in terms of “normalization” after two decades of regeneration and awakening – social and political as well as economic. In some ways the shocks of the past few years, and there have been many, have served as a test of the resolve for this progress and helped build useful muscles for the future.

We’ve certainly had some success in calling major trends and issues for our marketplace, even the wider economic picture. The Tropical Storm in Budapest in 2008 where we called the credit crunch stands out. Hopefully, we’ll make some worthwhile calls at our CEEQA@MIPIM forum in March but if you want our predictions, in the short term there are a few fires to put out but in the medium term we’ll see a stabilization of the financial markets and the global economy over the next few years. In the longer term, Central Europe, particularly Poland, will gather further momentum.

But the interesting issues for investors in the next decade are the future of retail, the future of debt finance and the future of the SEE markets.

For you personally what are the main highlights of the first 10 years of CEEQA? And have there been any surprises?

I think everyone remembers David Mitzner’s Lifetime Achievement award speech nine years ago, followed by his speech for Eli Alroy a few years later. Jason Sharman’s reaction to winning the Office

Agency award with King Sturge was memorable and stands out as a nice but deserved surprise, as was Barbara Topolska’s Industry Professional of the Year award last year. Colliers have done very well the past few years, winning three awards last year, which surprised a few people but not us who know how the judging works and that business results are not the sole criteria. The multiple awards won by the likes of GTC, TriGranit, Ghelamco, Jones Lang LaSalle and EC Harris have been less of a surprise but a clear indicator of their contribution to the market place. Bringing Deloitte in as supervisor of the awards process has undoubtedly been one of our best moves.

They’ve made a really big contribution, strengthening transparency and tightening up our processes.

If you had the opportunity again would you do anything differently?

I would have hired Monika Richardson to do the presenting much sooner. She has been a godsend behind the scenes as well as on stage in professionalizing our events.

If you had to choose some of the most important CEE real estate “legends” of the last decade who would they be?

And what impact have they had on the CEE market as a whole?

I don’t think I should answer that question, I think we should wait and see what the market thinks about the legends of the past decade at the next CEEQA Gala. ● Warsaw Business Journal is a media partner of CEEQA.

LOKALE IMMOBILIA – REAL ESTATE

JANUARY 14-20, 2013

First self-service hotel in Warsaw Sound Garden Hotel is set to launch this Spring

offers a musical theme, with each floor devoted to a different style: lounge, classic, rock, pop, nature sounds and silence. Guests can also listen to music through special applications available via an interactive television system.

The hotel will provide nine conference rooms that are currently getting their final touches, as well as a terrace overlooking the garden.

“We should be opening in April,” said Mi∏osz Stanis∏awski, sales and marketing director at Sound Garden Hotel. Average prices should be comparable to those in two- to three-star hotel chains.

Karolina Kowalska

COURTESY OF SOUND GARDEN HOTEL

A total of 206 rooms on five floors will be available to the guests of Sound Garden Hotel, which is scheduled to open this spring at the intersection of ul. ˚wirki i Wigury and ul. 1 Sierpnia, near Warsaw’s Chopin Airport. The facility, owned and operated

by Legends Hotels and Spa, is the first self-service hotel in the capital and the second in Poland. It is situated within the seven-building Business Garden office complex, designed by JSK Architekci.

The idea behind the establishment is to make clients’

lives easier by speeding up procedures. All rooms can be booked online and check-in will be conducted by the guest himself at one of four digital kiosks at the hotel. There will be no need to check out – the guest simply has to leave the room. A receptionist on duty will be available at all times in case of emergencies.

The hotel is still expecting a rating that should rank between two and three stars, though hotel representatives stress that the quality of items like towels and linen is of a five-star standard. The rooms are furnished with glass, wood and mosaics and there is free 300 Mb/s wi-fi in each one.

The Sound Garden Hotel

Each room will boast free wi-fi internet access

Property-related stocks Security

Closing price on Jan 10

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

68.00

-2.79

45.85

88.35

-11.97

25,530,098

1,736.05

CELTIC

5.25

16.67

3.74

19.38

-70.03

34,231,466

179.72

DOMDEV

34.20

-3.66

23.51

42.80

17.77

24,715,272

845.26

ECHO

5.10

0.00

3.42

5.48

50

420,000,000

2,142.00

ELBUDOWA

117.00

8.74

88.80

120.00

18.18

4,747,608

555.47

ENERGOPLD

0.34

30.77

0.17

2.30

-83.41

70,972,001

24.13

ERBUD

14.50

3.65

11.33

23.20

-20.77

12,677,956

183.83

GANT

3.82

1.87

2.68

9.85

-46.2

22,070,000

84.31

GTC

9.36

0.65

5.2

11.40

14.15

319,372,990

2,989.33

HBPOLSKA

0.02

0.00

0.01

1.43

-97.78

210,558,445

4.21

JWCONSTR

4.12

-0.24

3.26

8.40

-33.97

54,073,280

222.78

LCCORP

1.15

-3.36

0.87

1.48

25

447,558,311

514.69

MARVIPOL

9.35

-1.68

6.20

11.00

6.25

36,923,400

345.23

MIRBUD

1.15

-7.26

0.98

2.68

-43.63

75,000,000

86.25

MOSTALWAR

13.98

1.30

11.30

22.21

-13.7

20,000,000

279.60

MOSTALZAB

1.22

0.00

0.81

1.80

-14.69

149,130,538

181.94

ORCOGROUP

10.80

1.89

6.36

19.55

-29.41

107,840,962

1,164.68

PBG

6.02

12.52

3.36

83.90

-92.44

14,295,000

86.06

PLAZACNTR

1.48

6.47

1.34

2.94

-27.09

297,181,703

439.83

POLAQUA

3.50

-2.23

3.20

8.18

-32.04

27,500,100

96.25

POLIMEXMS

0.59

-3.28

0.48

2.04

-67.22

521,154,076

307.48

POLNORD

11.57

-0.60

10.00

19.85

-18.12

25,633,027

296.57

RANKPROGR

10.71

-5.89

7.10

16.97

9.73

37,183,550

398.24

ROBYG

1.50

7.14

1.09

1.75

33.93

257,935,500

386.90

RONSON

0.91

10.98

0.61

1.15

13.75

272,360,000

247.85

TRAKCJA

0.64

-5.88

0.56

1.44

-35.35

232,105,480

148.55

ULMA

42.85

-1.04

37.20

74.80

-33.46

5,255,632

225.20

UNIBEP

5.00

-0.79

3.60

6.28

-10.71

34,021,684

170.11

WARIMPEX

4.75

20.25

2.64

4.75

48.44

54,000,000

256.50

ZUE

6.01

-10.03

5.39

8.50

9.27

22,000,000

132.22

www.wbj.pl

17

Maybe social

media

is just a fad.

But these companies don’t think so. *

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

www.valkea-attention.com *Attention USA clients

THE LIST

JANUARY 14-20, 2013

www.wbj.pl

19

Corporate Services

Tax Advisory Companies Ranked by number of tax advisors (as of December 2012)

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Number of tax advisors: Revenue from Total revenue Dec 2012 / tax advisory 2011 / (z∏. mln) (z∏. mln) 2010 / 2009 2011 / 2010 / 2009

Rank

A guide to Polish business and industry

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

1

PwC(1) Al. Armii Ludowej 14, 00-638 Warsaw 22 523-4000/22 523-4040 podatki@pl.pwc.com, www.pwc.pl

137 124 118 108

125.7 115.6 109.9

453.7 399.7 388.8

Pharmaceuticals; health care; chemicals; financial services; real estate; trade and Tax optimization of income, indirect, employee taxes, social security, distribution; energy; transport and logistics; transfer pricing and enviromnental taxes; IT-based tax consulting; technology; communication; media and tax reporting services; tax policies and procedures; mergers and entertainment; sector; specialized acquisitions; international tax planning; tax workshops; publishing of teams dedicatedpublic to clients from: Germany, reports and analysis; taxonline.pl – specialized online tax portal France, Scandinavia, China, Japan, South Korea

377 15

1,674 1990

2

Deloitte Doradztwo Podatkowe Sp. z o.o.

Al. Jana Paw∏a II 19, 00-854 Warsaw 22 511-0812/22 511-0813 deloittetaxpl@deloittece.com www.deloitte.com/pl/podatki

118 109 96 92

WND 106.7 106.0

WND WND WND

CIT; VAT; PIT; excise; customs; tax and court proceedings; transfer Real estate; finance; fuel and energy; pricing; international tax law; mergers and acquisitions; suspended mining and metallurgy; automotive; tax; tax risk management; advisory for companies in SEZ; pharmaceuticals; chemicals; FMCG and investment grants and incentives; incentives for R&D; IT and retail; telecom; IT; technology; transport, technological aspects of tax transactions; workshops, conferences shipping and logistics; specialized language and tax trainings; internet publication and complimentary tax teams: German Desk, French Desk, Korean services www.deloitte.com/pl/subskrypcje Desk, Japanese Desk, Spanish Desk

WND WND

WND 1990

Krzysztof Moczulski

3

KPMG ul. Ch∏odna 51, 00-867 Warsaw 22 528-1100/22 528-1009 kpmg@kpmg.pl, www.kpmg.pl

104 97 96 85

108.7 92.0 113.0

447.2 407.0 455.0

VAT; CIT; PIT; social security; mergers and acquisitions; taxpayer Banks and financial institutions; automotive; defense and financial risk management; bank and financial tax building and construction; market for regulations; international tax; transfer pricing; customs and excise; consumer goods; fuel and energy; telecom; grants and incentives; EU Funds; tax and court proceedings pharmaceuticals; public sector

273 15

1,399 1990

Andrzej Âcis∏owski

4

Ernst & Young Doradztwo Podatkowe Sp. z o.o.(1) Rondo ONZ 1, 00-124 Warsaw 22 557-7000/22 557-7071 ernst.young@pl.ey.com, www.ey.com/pl

92 83 79 75

141.3 119.8 113.5

553.2 497.0 402.0

and new technologies; telecom; financial Advisory on: tax on goods and services, income tax, international IT solutions; construction and real estate; tax, social security, tax and court proceedings, mergers and pharmaceuticals; fuel and energy; FMCG; acquisitions, transfer pricing, customs and excise, investment grants foreign investments; media; heavy industry; and incentives, tax reporting public sector; mining; automotive

311 16

1,486 1990

Jacek K´dzior

5

MDDP Michalik D∏uska Dziedzic i Partnerzy spó∏ka doradztwa podatkowego Sp. z o.o. ul. Mokotowska 49, 00-542 Warsaw 22 322-6888/22 322-6889 biuro@mddp.pl, www.mddp.pl

27 30 28 26

27.3 24.6 24.6

WND WND WND

VAT; CIT; PIT; excise; customs; international tax; tax and court proceedings; social security; tax planning; tax risk management

Real estate; pharmaceuticals; FMCG; finance; media and technologies; automotive; energy

55 6

65 2004

Renata D∏uska

6

Instytut Studiów Podatkowych Modzelewski i Wspólnicy Sp. z o.o. - Grupa ISP ul. Kaleƒska 8, 04-367 Warsaw 22 517-3060/22 870-4178 biuro@isp-modzelewski.pl www.isp-modzelewski.pl

22 24 26 22

21.1 20.1 19.1

29.8 29.8 29.5

Tax and law consulting; tax optimization; transfer pricing; tax proceedings; tax audits; trainings; tax specialist publications; business expertise and legislative process; issuing reports; www.isp-modzelewski.pl

Building and construction; chemicals; fuel and energy; pharmaceuticals; IT; mining; medical; automotive; food industry; public sector; education; transport and shipping; tourism; finance; publishing

68 6

115 1996

Witold Modzelewski

7

Roedl, Majchrowicz-Bàczyk Kancelaria Prawna Sp.k. ul. Sienna 73, 00-833 Warsaw 22 696-2800/22 696-2801 warszawa@roedl.pl, www.roedl.com/pl

21 16 20 18

9.1 9.0 10.0

17.1 15.6 17.6

Regular tax and law advisory; structural tax and legal advisory; international transactions and investments; innovative remuneration system; CIT; PIT; VAT; transactions in real estate; loan security; tax and legal due diligence; establishing of companies and branches; company liquidations; acquisition and sale of businesses; executive HR services; tranfer pricing; DTAA consulting; tax proceedings; advisory on activities in SEZ; advisory on renewable energy

All sectors

20 14

77 1992

Aneta Majchrowicz-Bàczyk

8

Grupa Gumu∏ka - Kancelaria Prawa Finansowego Sp. z o.o. ul. Jana Matejki 4, 40-077 Katowice 32 790-2295/32 201-1765 grupa@gumulka.pl, www.gumulka.pl

19 19 18 9

3.3 3.2 2.1

8.6 8.6 5.9

Tax optimization; transfer pricing; tax audits; mergers and acquisitions; tax proceedings; risk management; services for foreign companies

Metallurgy; fuel and energy; building & construction; transport and logistics; municipal; food industry; R&D; aviation; public administration

35 5

70 1993

Rados∏aw Gumu∏ka

19 19 17 15

11.5 11.1 9.3

26.2 21.8 18.2

International tax planning; transactions and investments handling; tax risk management; tax and court proceedings; tax outsourcing; transfer pricing; tax on real estate

Construction and real estate; energy; municipal; retail; transport and logistics

34 -

140 2005

Wojciech Sztuba; Krzysztof Kaczmarek

14 12 9 7

6.8 6.5 6.5

28.8 29.0 37.2

Full legal advisory; complex transactions service; corporate services; legal consulting for entities on regulated markets; real estate law and investment process; construction law; intellectual property law

TMT; fuel and energy; infrastrutcure; construction and real estate; waste management; public sector; finance; transport, shipping and logistics; FMCG; sports

34 4

115 1996

Andrzej Ladziƒski; Artur Cmoch

Spó∏ka Doradztwa Podatkowego O˝óg i Wspólnicy Sp. z o.o.

10 ul. Sienna 39, 00-121 Warsaw 22 480-8100/22 480-8118 info@ozog.pl, www.ozog.pl

13 15 15 13

12.2 8.2 8.5

12.2 8.2 8.5

VAT; CIT; PIT; excise; tax planning and optimization; SEZ; tax and court proceedings; transfer pricing

Energy; building & construction; pharmaceuticals; finance; media & telecoms

25 2

31 2003

Irena O˝óg; Pawe∏ Tomczykowski

Grant Thornton Fràckowiak Sp. z o.o., Sp.k.(1) ul. Abpa Antoniego Baraniaka 88E, 11 61-131 Poznaƒ 61 625-1100/61 625-1101 krzysztof.podborowski@pl.gt.com www.grantthornton.pl

11 10 9 8

17.8 15.4 13.0

35.4 33.8 34.6

Tax assistance; tax optimization; transfer pricing; benchmarking; tax audits; tax proceedings; tax advisory for expatriates; tax compliance; submissions to the Ministry of Finance; tax and legal advisory on capital transactions; due diligence; structural and transactional optimization; advisory on foreign start-ups; advisory on establishing companies and branches

Food industry; trade; building and construction; technologies; energy

104 2

316 1993

Cecylia Pol; Tomasz Wróblewski

Salans D. Oleszczuk Kancelaria Prawnicza Sp.k.

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

9 11 10 9

7.8 6.5 4.8

138.5 109.5 93.4

Full tax advisory service; tax assistance; transaction advisory; transfer pricing; tax proceedings

Pharmaceuticals; real estate; energy; IT; finance and banking; capital markets

12 78

290 1991

Tomasz Dàbrowski

8 6 5 WND

2.8 2.8 WND

41.0 41.0 WND

VAT; transfer pricing; CIT; tax proceedings; PIT; pre-purchase research

All sectors

10 -

184 1992

8 10 10 8

WND 4.6 3.4

WND 6.8 5.5

Tax advisory; transfer pricing; advisory on transactions; business valuation; financial audit; accounting outsourcing; IAS/IFRS; US GAAP

Real estate; conventional and green energy; IT; retail; transport, shipping and logistics; automotive; hi-tech manufacturing

14 2

115 1992

8

9

TPA Horwath Sztuba Kaczmarek Sp. z o.o. ul. Murawa 12-18, 61-655 Poznaƒ 61 630-0500/61 630-0502 office@tpa-horwath.pl, www.tpa-horwath.pl GWW TAX (GWW Ladziƒski, Cmoch i Wspólnicy Sp.k.) ul. Pi´kna 18, 00-549 Warsaw 22 212-0000/22 212-0001 warszawa@gww.pl, www.gww.pl

Mazars w Polsce(2) 13 ul. Pi´kna 18, 00-549 Warsaw 22 255-5200/22 255-5299 main@mazars.pl, www.mazars.pl RSM Poland KZWS Spó∏ka Doradztwa Podatkowego SA 13 Stary Rynek 38-39, 61-772 Poznaƒ 61 851-5766/61 851-5761 biuro@rsmi.pl, www.rsmi.pl

Services offered

Notes: Notes: WND = Would Not Disclose. Research for The List was conducted in January 2013. Number of employees and ownership structure are as of December 2012. All information pertains to the companies’ activities in Poland. Only the first 14 companies which answered our survey are listed. The full list is available on bookoflists.pl. Footnotes: (1) Financial year: July 1 - June 30; (2) Financial year: September 1 - August 31.

Sector specializations

Number of persons Total number of dealing with taxes / employees / Number of lawyers Year founded in and legal advisors Poland

Top local executive / Title

Iwona Smith Managing Partner in Tax Department

Managing Partner

Managing Partner

Managing Partner

President

Legal Advisor; Partner

Presindent

Managing Partners

Managing Partners; Tax Advisors

Managing Partners

President; Vice President

Managing Partner

Michel Kiviatkowski; Krystyna Szyd∏owska Managing Partner; Tax Advisory Department Director

Bartosz Mi∏aszewski President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2012, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

20

MARKETS

www.wbj.pl

JANUARY 14-20, 2013

Stocks report

world stock indices DJIA

NASDAQ

13,471.22 (Jan 10 close)

S&P500

3,121.76 (Jan 10 close)

0.60% (for the week)

FTSE100

1,472.12 (Jan 10 close)

0.68% (for the week)

DAX

6,101.50 (Jan 10 close)

0.87% (for the week)

0.90% (for the week)

Cashing in early

NIKKEI 7,708.47 (Jan 10 close)

10,652.64 (Jan 10 close)

-0.62% (for the week)

-0.33% (for the week)

CHANGE: 0.44%

CHANGE: 0.31%

CHANGE: 0.66%

CHANGE: 1.23%

CHANGE: -0.90%

CHANGE: -0.33%

(year to Jan 10)

(year to Jan 10)

(year to Jan 10)

(year to Jan 10)

(year to Jan 10)

(year to Jan 10)

52-week high: 13,661.90

52-week high: 3,196.93

52-week high: 1,474.51

52-week high: 6,118.30

52-week high: 7,789.94

52-week high: 10,743.70

52-week low: 12,035.10

52-week low: 2,689.58

52-week low: 1,266.74

52-week low: 5,229.80

52-week low: 5,914.43

52-week low: 8,238.96

Andrew Nawrocki WBJ market analyst The first full week of 2013 saw investors cash in on recent gains. The start of the week saw blue chips fall over 1.5 percent, with financials and oil & gas firms taking large hits.

Monday saw the largest declines, with the WIG20 blue-chip index falling 0.89 percent. Shares of Lotos were hit hardest. The Gdaƒsk-based refiner saw its shares decline by 4.7 percent, while shares of PKN Orlen fell 3.1 percent.

Investors continued the profit taking on Tuesday, with both Lotos and PKN Orlen again shedding nearly 1.25 percent. Faring better were small- and medium-cap stocks, with the small-cap sWIG80 up 0.12 percent, while the mWIG40 index of medium-sized firms managed to close nearly flat.

Major indices WIG

47,546.91 (January 10 close)

WIG20

2,573.62 (January 10 close)

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

21.12

20.12

19.12

18.12

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

2,400

21.12

45,000

20.12

2,460

19.12

45,800

18.12

2,520

17.12

46,600

14.12

2,580

13.12

47,400

12.12

2,640

11.12

48,200

10.12

2,700

07.12

49,000

17.12

52-week low: 2,035.80

14.12

Change year to January 10: -2.00%

13.12

52-week low: 36,653.28

12.12

52-week high: 2,628.36

Change year to January 10: -1.17%

11.12

Change for the week: -2.08%

10.12

52-week high: 48,107.89

07.12

Change for the week: -1.40%

Top 5 ONE2ONE BNPPL ABMSOLID REINHOLD DELKO

Closing 0.50 131.40 0.27 0.50 2.85

% change (week) 52-week high 150 3.46 123.47 131.40 107.69 4.75 92.31 1.99 39.02 5.80

52-week low 0.14 44.00 0.11 0.24 1.78

Top 5 TPSA PGNIG GTC BOGDANKA TAURONPE

Closing 12.79 5.43 9.36 137.80 4.85

% change (week) 5.44 3.43 0.65 0.58 0.41

52-week high 18.08 5.50 11.47 143.00 5.61

52-week low 11.56 3.61 5.13 106.10 4.08

Bottom 5 EUROMARK RUBICON WILBO POLJADLO INTAKUS

Closing 0.11 0.17 0.38 0.19 0.35

% change (week) -35.29 -22.73 -22.45 -17.39 -16.67

52-week low 0.06 0.16 0.09 0.17 0.12

Bottom 5 LOTOS PKNORLEN KERNEL TVN PZU

Closing 39.20 48.75 62.95 9.45 419.00

% change (week) -7.02 -6.97 -6.25 -5.41 -4.23

52-week high 43.78 53.70 76.00 12.40 442.00

52-week low 21.31 31.44 51.00 5.90 290.10

52-week high 2.39 0.68 1.06 0.77 1.04

Currency report

RPP boosts z∏oty

Other indices sWIG80

10,496.80 (January 10 close)

NewConnect

33.33 (January 10 close)

WIG-Banki

6,551.72 (January 10 close)

SOURCE: WSE

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

21.12

20.12

19.12

18.12

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

21.12

6,400

20.12

32.0

19.12

6,480 18.12

32.4

17.12

6,560

14.12

32.8

13.12

6,640

12.12

33.2

11.12

6,720

10.12

33.6

07.12

6,800

17.12

52-week low: 5,163.30

14.12

Change year to January 10: -2.55%

13.12

52-week low: 32.54

12.12

52-week high: 6,723.16

Change year to January 10: 0.33%

11.12

Change for the week: -2.25%

10.12

52-week high: 43.83

07.12

Change for the week: -0.45%

34.0

Adam Narczewski X-Trade Brokers DM SA

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

21.12

52-week low: 8,657.29

18.12

17.12

52-week high: 10,554.18

14.12

10.01

09.01

08.01

07.01

04.01

03.01

02.01

28.12

27.12

10,000

21.12

2,500

20.12

10,120

19.12

2,540

18.12

10,240

17.12

2,580

14.12

10,360

13.12

2,620

12.12

10,480

11.12

2,660

10.12

10,600

07.12

2,700

13.12

Change year to January 10: -0.33%

12.12

52-week low: 2,147.52

11.12

Change year to January 10: 0.93%

10.12

Change for the week: -0.54%

07.12

52-week high: 2,625.96

20.12

2,592.53 (January 10 close)

19.12

mWIG40 Change for the week: 0.15%

Wednesday brought good news to markets, with European equities rebounding on the back of better-than-expected corporate results overseas.

After uplifting remarks from Alcoa in the United States, blue chips in Warsaw gained strength, with financials PKO BP (1.1 percent) and PZU (1.2 percent) leading in gains.

Despite strong gains on Thursday Polish equities, stocks pulled back one hour before the close as rumors of a possible credit downgrade for a European country scared investors.

On Friday, both the main WIG index and the WIG20 ended the day with losses, of 0.22 percent and 0.61 percent respectively, on the back of low trade turnover. ●

Currency markets started the new year in strong fashion.

Global events increased volatility, which is the fuel traders need. The European Central Bank kept interest rates unchanged, but at a press conference none of the ECB members proposed an interest rate cut, which euro bulls had been fearing.

The common currency rallied, lifting the EUR/USD from levels just above $1.30 all the way to its nine-month high of $1.334.

The situation on the z∏oty market was also interesting.

The Monetary Policy Council (RPP) decided to cut interest rates by 25 basis points to 4 percent, a move widely expected by investors. Market reaction was modest, the impulse for the appreciation of the z∏oty came at a press conference.

The RPP’s head, National Bank of Poland president Marek Belka, stated that after only one or two more cuts (so to 3.50 percent), the RPP will halt the process to see how the economy evolves. Since investors expected the cycle to continue until rates reach 3.25 percent, the news strengthened the z∏oty.

By the end of the week, when risk aversion increased, the z∏oty had given up some of its weekly gains. Overall, throughout the week, the EUR/PLN declined from z∏.4.12 to z∏.4.10. The weakness of the dollar could be observed against all the major currencies, as well as the z∏oty: the USD/PLN rate declined from z∏.3.17 all the way to z∏.3.07. ●

currency rates 3.5948

3.6022

3.5981

3.6009

3.5295

3.4739

07.01

08.01

09.01

10.01

11.01

3.0

04.01

0.1020 11.01

0.1026

3.5

SOURCE: NBP

PLN-100JPY

4.0

10.01

0.1036 09.01

0.1040 08.01

0.1039 07.01

11.01

10.01

09.01

08.01

07.01

0.10

04.01

0.1041

3.3693

3.3718

3.4075

3.4123

3.4094

3.4106 04.01

3.0

PLN-RUB

0.12

4.9783 11.01

4.9917 10.01

09.01

08.01

07.01

04.01

4.9

PLN-CHF

3.5

5.0642

5.0605

5.0767

5.0873 3.0890 11.01

3.1121

PLN-GBP

10.01

3.1516 09.01

3.1457 08.01

07.01

3.1700 04.01

4.0996 11.01

3.0

3.1618

PLN-USD

3.5

10.01 4.0760

4.1192 09.01

4.1263 08.01

07.01

4.1248 04.01

4.0

4.1218

PLN-EUR

4.2

SPORTS

JANUARY 14-20, 2013

www.wbj.pl

21

Soccer

Olisadebe hangs up his boots

Justyna Kowalczyk

Cross-country skiing

Kowalczyk wins Tour de Ski title

Justyna Kowalczyk won the Tour de Ski in Val di Fiemme, Italy, at the start of January, her fourth consecutive victory of the series.

Ms Kowalczyk finished seventh in the 9km Free Final Climb Pursuit, the final race of this year’s tour, but it was still enough to ensure she took the overall title. Her combined total time over the seven stages

was 27.9 seconds ahead of Norwegian skier Therese Johaug, who took second place.

Victory for the 29-year-old Olympic champion made her the most successful athlete (male or female) in the competition’s history. It also maintains her lead at the top of the overall FIS Cross-Country World Cup standings. Ms Kowalczyk currently has 1,222 points, which is 370 more than Ms Johang, who is second in the current ranking.

“Once again, it’s been a fantastic Tour de Ski. For the fourth time I took first place and I’m so happy,” she told fis-

Former Polonia Warszawa and Poland striker Emmanuel Olisadebe decided to call time on his professional career at the start of 2013. The 34-yearold, who was born in Warri, Nigeria became an unlikely hero in Poland after he was signed by Polonia from Nigerian side Jasper United in 1997.

After a quiet start to his Ekstraklasa career, Mr Olisadebe went on to play a leading role in the most suc-

crosscountry.com.

“Every race and every Tour have their own story and the hardest one was probably the first one I won.”

“I like Val di Fiemme a lot and it’s going to be a great World Championship next month. Usually I ski better after the Tour de Ski, I hope it will be the same this year,” she added.

If the Pole does win the overall World Cup title this year it will put her one championship victory ahead of her great rival Marit Bjoergen, with both women currently boasting three titles each.

David Ingham

cessful period in Polonia’s history, helping them to win the 1999/2000 Ekstraklasa title, the team’s first in 50 years, as well as the Polish League Cup, Polish Super Cup and one year later, the Polish Cup. Known for his lightning pace, Mr Olisadebe scored 12 league goals during the title-winning campaign, including the only goal in a 1-0 away win over arch rival Legia Warszawa.

His success in Warsaw did not go unnoticed and in 2000 he was offered Polish citizenship, enabling him to represent his adopted nation’s national team in the 2002 World Cup

COURTESY OF FACEBOOK.COM/EMMANUELOLISADEBE

The victory marked the celebrated Polish skier’s fourth consecutive Tour de Ski win

SHUTTERSTOCK

The Nigerian-born striker helped Poland reach the 2002 World Cup

Emmanuel Olisadebe

qualifying campaign. It was a move that ultimately helped secure Poland’s first World Cup appearance in 16 years, as he scored eight times to help Poland top its group. He then went on to score the opener in a 3-1 victory over the United States in the group stages of the final tournament.

“I am very grateful to Poland,” Mr Olisadebe told UEFA.com. “I started my proper career here, met my wife and played for the national team. I will never forget this beautiful experience.”

He went on to play for Greek side Panathinaikos, also helping them win a league title before injuries blighted the later part of his career. But despite some suggesting he failed to fulfill his full potential, the former Polonia man declared himself happy with his achievements.

“If it weren’t for the knee injuries, I could have done better, but I am still satisfied with what I achieved,” he said. “I am a boy from Nigeria who went to do something in Europe and pulled it off. I have a lot of fantastic moments in my memory and nobody can take them away from me,” he said.

David Ingham

22

LIFESTYLE

www.wbj.pl

Concert

Swan Lake

Let it bleed

COURTESY OF JACEK ¸AGOWSKI/PALLADIUM.COM

Thieves Like Us September 19 Klub Powi´kszenie ul. Nowy Âwiat 27, Warsaw This group started out in 2002 when Swedish musicians Pontus Berghe and Björn Berglund met the American vocalist Andy Grier in Berlin.

Named after a song by the hugely influential 1980s Manchester band New Order, this electro outfit has been

Tchaikovsky’s classic ballet is based on an old Russian folktale and tells the story of a princess named Odette who is transformed into a swan by the curse of evil sorcerer Von Rothbart. Odette is forced to live by

most famous ballet. It is a timeless tale of the struggle between good and evil, and tells how the power of love cannot be dimmed by death.

For this adaptation the orchestra is led by Piotr Czajkowski, with Anna Wujkowska choreographing the dancers.

Tickets are priced from z∏.47.

David Ingham

For more information log on to teatrpalladium.com

COURTESY OF THIEVESLIKEUS.COM

A timeless tale a lake that was created from the tears of her grieving mother and can only regain her human form at night. But one evening, the young Prince Siegfried sees Odette transform from her swan form into her former self and after a night at the lake together, he vows to love Odette for eternity.

First premiered at Moscow’s Bolshoi Theatre in 1877, this spectacle has gone on to become arguably the world’s

through various lineup changes since its formation, with Andy Grier the only everpresent member.

The band’s fourth studio album, “Bleed Bleed Bleed,” was released last year and contains the type of dark 80s sound and catchy pop hooks that you’d expect from musicians with links to New Order.

However, the group is keen to distance itself from its more illustrious peers, with mem-

bers saying in a recent interview that while the band’s name has helped promote records, they aren’t actually New Order fans.

This concert is part of a three-date Polish tour that will also see the group perform in Poznaƒ and Wroc∏aw on January 18 and 20 respectively.

David Ingham

For more information log on to klubpowiekszenie.pl

Thieves Like Us

Ballet

Swan Lake January 13, 11 am and February 25, 10 am Teatr Palladium ul. Z∏ota 9, Warsaw

JANUARY 14-20, 2013

LAST WORD

JANUARY 14-20, 2013

www.wbj.pl

23

Tech Eye

The New Year excites, after a tepid start

COURTESY OF FULTON INNOVATION

Two-way wireless power

If you’re not familiar with it, CES is a huge event, but an odd one. It’s a massive technological chimera that includes everything from automotive accessories to tablets and smartphones to, uh, lamps.

There’s always an amusing assortment of garbage as well, such as 2011’s infamous ioPrego Electronic Rosary, which sounds like a guiltexacerbating pregnancy test for unwed Catholics but was, in fact, far less useful. They’re hard to find these days – apparently the market for creepy, beadless, talking rosaries was smaller than expected.

Anyway, there are so many products at CES – good and bad – that it’s impossible to discuss them all; as always, Techeye will cover the highlights over a few columns. So let’s start off with something from Fulton Innovation.

This forward-looking American firm doesn’t sell much consumer technology right now, or at least not the kind you’d notice in your local electronics shop. Among other things, it’s heavily invested in wireless charging, a feature which has only recently begun to appear in tablets and smartphones.

At CES 2013, Fulton showed off a new technology it calls “two-way wire-

less power,” which enables power to be transferred between two devices when they’re placed back-to-back.

This could come in handy right now if, like Techeye, you’ve got a number of mobile devices around the house, all competing for a limited number of chargers.

Fulton is looking even further ahead, though, to applications involving smart furniture (tables-as-chargers, for example), wireless kitchen appliances, and even smart packaging or smart posters. Fascinating stuff.

And no, you can’t buy it yet. But expect to see more features like twoway wireless power creeping into high-end consumer goods over the next few years.

For its part, Samsung was as impressively present at CES as usual, though not all of its gadgets were impressive. As usual.

The Korean juggernaut brought cameras, computers, TVs, audio equipment and even a new robotic vacuum cleaner. Amid all

that, the first thing that caught our attention was the Vacuum Tube Soundbar, a long, thin speaker that can be placed horizontally or vertically in your home entertainment center.

The speaker’s design incorporates an internal gyroscope to optimize sound quality regardless of position.

Samsung makes two major claims with the

soundbar to feature a built-in vacuum tube to maximize sound quality,” and that it’s “the world’s first soundbar that can wirelessly connect with a TV via Bluetooth.” Isn’t that amazing?

Er … maybe. We’re not really sure what constitutes an impressive “world’s first” when it comes to something as niche as a soundbar.

But if you’re looking to enrich your home theater with a soundbar offering “pure power and warm, natural sound” along with an additional subwoofer, then you might want to check this product out. No word on price yet; expect Samsung to publish this info in the nearish future.

Is the Vacuum Tube Soundbar the kind of product that could make 2013 an interesting year? Sure, why not. After the kind of boring New Year that Techeye had, even vacuum-tube technology seems pretty exciting. ● COURTESY OF SAMSUNG

Techeye greeted 2013 with a strong suspicion that it’s going to suck. Badly.

We awoke in our own bed with no hangover, no difficulty reconstructing the events of the night before, no glorious sense of self-disgust, and no unexplained rashes. A terrible precedent for the new year, in other words.

If 2013 continues this way, Techeye may die of boredom by June.

There is a glimmer of hope, though. The 2013 International Consumer Electronics Show (CES) kicked off last week and some of the new gadgets on show suggest the future will be interesting.

Vacuum Tube Soundbar – that it’s the “first

Vacuum Tube Soundbar

In the market for a creepy, beadless, talking rosary? Let us know: techeye.wbj@gmail.com

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

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

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

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

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

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

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

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

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