WBJ #6 2013

Telecom trounced

Dreamliner or nightmare?

Thanks, Benedict

Ugly results out of Poland’s largest telecom led to a huge drop in its stock price

The grounding of Boeing’s Dreamliner planes means more costs that LOT can hardly afford

Polish politicians react to the resignation of the pontiff

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WWW.WBJ.PL

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VOLUME 19, NUMBER 6 • FEBRUARY 18-24, 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

Wave of money COURTESY OF MGC INWEST

REAL ESTATE

The new EU budget designates a tidal wave of largesse for Poland.

WBJ takes a look at the details 13

• Luxury apartments • Starwood interview • Galeria Warmiƒska 15-17

Fiat to save Tychy?

Fiat looks set to bring production of its 500 model exclusively to 6 Poland

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .11 Finance & Economics . . . . . . . . . .12 Cover Story . . . . . . . . . . . . . . . . . .13 Lokale Immobilia . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Transatlantic FTA?

Open mouth, insert foot

The US and EU are getting down to negotiations on a free trade agreement

Caveman-like comments from political enfant terrible Janusz Palikot have put him and his party in hot water 4

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NEWS

www.wbj.pl

€145.9 billion

was the total value of Polish exports in 2012, according to the NBP, a 4.2 percent increase over 2011.

€9.7 billion

was Poland’s foreign trade deficit last year, according to the Central Statistical Office.

z∏.5 billion is how much Poland’s gas monopoly, PGNiG, will spend on investments in 2013.

z∏.724 billion

About to lose their jobs?

Next week the government of Prime Minister Donald Tusk could see a significant shakeup.

Tomasz Arabski, current chief of the Permanent Committee of the Council of Ministers, is set to become Poland’s ambassador to Spain, and Mr Tusk has decided to use the occasion to make bigger changes amongst his government ministers.

“On Wednesday there will be a cabinet meeting at which I will announce changes in the government connected with Mr Arabski’s departure, of which there will be several,” said the prime minister at a press conference last week.

The announcement started a wave of speculation as to

Jacek Ciesnowski

Quote of the Week “It may be that Wanda Nowicka wants to be raped, but not by me. I’m not the type of person who is suited for that type of work.”

Janusz Palikot, leader of Palikot’s Movement, giving what he called his “psychoanalysis” of Ms Nowicka’s refusal to step down as deputy parliamentary speaker even though his party, which she had been a member of, no longer supports her.

Figures in focus Retail trade winners and losers Change in volume of retail trade in December 2012 vs December 2011, selected EU countries (%) 15 10

0 -5 *Biggest positive change in the EU **Biggest negative change in the EU

-10

CALENDAR

February/March FEBRUARY 19 PROPERTY FORUM POZNAŃ

Location: Web:

British Embassy, ul. Kawalerii 12, Warsaw bpcc.org.pl

FEB. 28-MAR. 1 EXPOCHEM

Web:

Another edition of this series of regional conferences will take place in Poznaƒ. The current commercial real estate situation in the Wielkopolskie voivodship will be discussed.

Local authorities, developers, investors and commercial space tenants will take part in a series of discussions.

Sheraton Hotel, ul. Bukowska 3/9, Poznaƒ propertynews.pl

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BRITISH POLISH HEALTHCARE FORUM

MARCH 21-22 EUROPEAN EXECUTIVE FORUM

Event:

Location:

Event: Subtitled “Creating Opportunities in the Polish Health System – Effective Management and Finance,” this forum aims to promote UK best practice in health care facility and hospital management to key stakeholders in Polish hospitals, with a focus on secondary and tertiary care. This event will be in the form of an up-to-date briefing on opportunities in the health sector in Poland, and will deliver concrete business-development opportunities for companies attending.

Event:

Location: Web:

Event:

Location: Web:

This chemical industry fair bills itself as a meeting with all representatives of domestic companies interested in selling as well as purchasing products, solutions and establishing cooperation with foreign chemical companies.

Spodek, ul. Korfantego 35, Katowice expochem.pl

This conference, entitled “Leadership in Changing Europe,” will examine various leadership issues, including what makes a good leader, historical leadership, what kind of leadership is needed in Europe and business leadership.

Hotel Sheraton, ul. Boles∏awa Prusa 2, Warsaw executive-club.com.pl

nc e Kin gd om Po la nd Slo va kia Ge rm an y Po rtu ga l Sp ain **

y

-15

Un

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As Poland and Lithuania move to repair damaged ties, what exactly is the nature of their relationship and why is it being labeled “strategic”? Moreover, what has been the definition of a strategic relationship between the countries over history? Log on to WBJ.pl to read more.

rw a

Poland and Lithuania’s “strategic partnership”

nia

On WBJ.pl

PZU to slash employment Poland’s largest insurer, PZU, officially announced it would restructure its workforce between March and June of this year. PZU and its life insurance subsidiary, PZU ˚ycie, will cut employment by up to 630 jobs, which is 5.5% of the group’s total workforce. A total of 3,145 jobs will be affected by the restructuring process. ●

riage-similar rights to samesex couples was unconstitutional. Prime Minister Donald Tusk quickly denied the claim, saying, “This is only Mr Gowin’s personal opinion, and not the official position of the government.”

While most politicians from the government coalition are unwilling to comment on the matter, the opposition is having a field day, proposing plenty of potential candidates to fire. The most often-repeated names are Health Minister Bartosz Ar∏ukowicz, Education Minister Krystyna Szumilas and Treasury Minister Miko∏aj Budzanowski.

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40 shale gas boreholes so far in Poland As at February 4, Poland had 40 shale gas exploration boreholes completed, the Ministry of the Environment announced. Two more are now being drilled. By 2021, at least 128 and as many as 309 boreholes will be drilled in the search for shale gas in Poland. The exact number will depend on exploration results and on companies’ capabilities. Shale gas exploration activities in Poland were launched in June 2010.

who might get the boot.

According to Deputy Prime Minister and Minister of Economy Janusz Piechociƒski, the changes could be “unexpected.” He added in an interview with TVN24 that only ministers who are members of the senior coalition partner Civic Platform could lose their jobs. He didn’t delve into details, but when asked about the future of Minister of Justice Jaros∏aw Gowin, he replied enigmatically: “He is a member of Civic Platform.”

Mr Gowin’s future has been a point of speculation ever since he claimed a government-supported bill that would have given some mar-

was the total value of deposits of the non-financial sector at the end of 2012, up by 3.5 percent year-onyear.

No

Poland’s consumer price index inflation rate was 1.7% in January in yearon-year terms, statistics office GUS said. When compared to December 2012, the CPI figure was 0.1%. Economists surveyed by PAP had expected y/y CPI to be 2% and the month-on-month figure to be 0.2%. The prices of food and nonalcoholic beverages rose the most – by 3.5% y/y.

The prices of clothing fell by 4.9% and transportation prices fell by 0.7%.

Changes in the government

Es to

CPI at 1.7% in January

Numbers in the News

tvi a*

Polish businessman Aleksander Gudzowaty, the CEO of barter-trade firm Bartimpex and one of Poland’s wealthiest men, passed away on Thursday morning in a Warsaw hospital. He was 75. He earned most of his fortune by buying gas from Russia’s Gazprom in exchange for foodstuffs and industrial products.

In 2008, with a fortune worth z∏.3.7 billion, he was ranked 9th on the list of wealthiest Poles compiled by weekly Wprost.

IN THE SPOTLIGHT

La

Gudzowaty passes away

FEBRUARY 18-24, 2013

COURTESY OF KPRM/FLICKR

2

Source: Eurostat

Company index Angel Poland Group ..............15

Media Markt ..........................17

APA Kury∏owicz & Associates17

Mediobanca Securities ............6

APM ........................................15

Peter Nielsen & Partners ........4

Bartimpex ................................2

Play ........................................13

Bitcraze ..................................23

Polska Telefonia Cyfrowa ......13

Boeing ......................................5

Polski Holding NieruchomoÊci5

Budimex..................................15

Praktiker ................................17

Buma Group ..........................15

PwC ..........................................6

Buma Inwestor ......................15

PZU ..........................................2

Colliers International ............15

Red Real Estate

Comarch ..................................6

Development ..........................15

Cube........................................17

Satechi ....................................23

EMI Music Polska ....................6

Sedlak & Sedlak ....................12

Energa ....................................13

Spotify ......................................6

Fiat ............................................6

Starwood

Fiat-Chrysler ............................6

Hotels & Resorts Poland ......16

Gaz-System ............................13

T-Mobile..................................13

Gazprom ..................................2

Telekomunikacja Polska ....5, 20

Griffin Group ..........................15

TGI ..........................................15

H&M........................................17

Warsaw Stock Exchange ....5, 15

Libra Project ..........................17

X-Trade Brokers ....................20

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

Zara ........................................17

NEWS

FEBRUARY 18-24, 2013

www.wbj.pl

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International trade

Decision makers on both sides of the Atlantic have moved to hasten a process aimed at boosting business ties between the world’s two largest economies A game-changer

The European Union and the United States have agreed to start formal negotiations on a deal, which, if finalized, would create the largest free-trade zone in history.

During his State of the Union speech last week, US President Barack Obama announced impending negotiations on a “comprehensive transatlantic trade and investment partnership.” “Trade that is free and fair across the Atlantic supports millions of good-paying American jobs,” Mr Obama said.

The statements came after a year of preliminary discussions between representatives of the two economies regarding the phasing out of tariffs and the reduction of regulatory barriers in order to create closer ties at a time when the US and the EU face stubbornly sluggish growth at home and increasing competition from China.

“The future agreement between the two biggest economic global empires will be a game-changer,” said European Commission president José Manuel Barroso last week.

The negotiations are set to start in mid-2013 and Karel De Gucht, the EU Trade Commissioner, has said he thinks a deal could be in place within two years.

EU-US trade was worth roughly €445 billion in 2011.

Some economists estimate that a trade agreement between both blocs could boost each of their gross domestic products by 0.5 percent annually.

How could it affect Poland?

“Polish industry has established very strong ties with German companies for whom they make components for their products. I think it could play a similar role in the US,”

said Tomasz Demendecki from the Business Centre Club, an employers’ association.

“The only question I have [about the agreement] is why so late? Today, there are too many barriers to the exchange not only of goods but also of ideas and knowledge,” Mr Demendecki added.

“Right now the EU supports the scientific work only of its members as the US does only of its citizens. Hopefully, that could now change,” he said.

But Jan Filip Stani∏ko, an analyst at the Sobieski Institute, was somewhat less enthusiastic about the issue.

“The free-trade agreement is a kind of fetish and a sign that politicians in Europe and the US are becoming desperate in the quest for growth,” Mr Stani∏ko said. “However, there is no reason why trade cannot be liberalized or increased under the existing WTO agreements binding both blocs as well as through existing bilateral agreements.”

Mr Stani∏ko is also skepti-

International affairs

COURTESY OF THE WHITE HOUSE

EU-US free trade agreement by 2015

President Obama said during his State of the Union address that he wants a free trade agreement with the EU cal about the benefits of such an agreement for Poland.

“The effects of a free-trade agreement are similar to the effects of rapid technological development. Some sectors will suffer an immediate loss of competitive advantage,” he said, adding that there was research showing that the removal of tariffs could sometimes mean costs for the economy “20 times bigger than the benefits.”

Stumbling blocks Mr Demendecki, though in favor of a free-trade agreement between the US and Europe, acknowledges that there will be stumbling blocks to such a deal.

“The agricultural policies of both economies are not compatible. The EU provides a lot of support for its farmers and erects a lot of barriers to protect them, and the US does likewise.”

Mr Demendecki also men-

tioned the “never-ending” discussion about genetically modified organisms as a potential obstacle to an agreement.

Given the low average tariffs on goods traded between both economies (under 3 percent), it would seem the key to unlocking any untapped potential lies in the deregulation of non-tariff barriers. These consist mainly of customs procedures and behind-the-border regulatory Remi Adekoya restrictions.

Food

Poland joins world to condemn More details emerge in North Korea nuclear test horse-meat scandal

Poland’s Foreign Minister Rados∏aw Sikorski has condemned North Korea’s latest underground nuclear test, worrying publicly that the regime may have “wriggled itself out of the control of its protectorChina.”

Mr Sikorski made the comments on Polish Radio 1, adding that North Korea possessing and potentially trading nuclear technology is “dangerous for the whole world.”

The foreign minister pointed to China as the main player in the North Korea equation.

“Without [China’s] support, without the border open for trade and the movement of people, the North Korean regime would not last longer than a few months,” he said.

But China did join other countries in “strongly condemning” the North Korean nuclear test after a UN Security Council emergency meeting held last week.

UN Secretary General Ban Ki-moon called Pyongyang’s actions “deplorable” and the Security Council promised

The horse-meat scandal spreads to more European countries, shifting the blame away from Poland

COURTESY OF MSZ/FLICKR

Foreign Minister Rados∏aw Sikorski calls North Korea’s possession of nuclear weapons “dangerous for the whole world”

Mr Sikorski strongly condemned North Korea’s actions “significant action” if the North Korean regime carries out another nuclear test. However, it remains unclear as to how China would react.

North Korea announced that this latest test exhibited “greater explosive force” than those it conducted in 2006 and 2009. The earliest test is said to have yielded less than one kiloton of energy while the one conducted in three years later is thought to have released between two and seven kilotons. For reference, the bomb that destroyed Hiroshima in 1945 released 16 kilotons of energy.

After the latest test, Kim Min-seok, a spokesperson for South Korea’s defense ministry, said the magnitude of the “artificial tremor” suggested the size of the February blast could be between six and seven kilotons. The actual size of the blast remains unconfirmed, however.

North Korea’s state news agency KCNA said it had used a “miniaturized” and lighter nuclear device this time around. It is believed that the communist regime’s aim is to build a nuclear weapon capable of hitting the US. Remi Adekoya

Beef products have been found to contain horse DNA, or have been pulled from shelves on suspicions thereof, in several EU countries now, including: Ireland, the UK, Germany, France, the Netherlands and Spain.

The first tainted samples, found in Ireland in January, led to accusations that the meat had originated in Poland.

Further tests in Polish slaughterhouses didn’t find any traces of horse DNA, however.

The next in line for blame from Western European media was Romania. Last Monday, Britain’s Daily Record exclaimed: “Wild horses caught by Romanian peasants and sold to gangs for £10 may have ended up on British dinner plates.”

But it seems the focus on Eastern Europeans could be misguided. The UK’s Food Standards Agency shut down a slaughterhouse in northern England and a meat plant in Wales after an investigation revealed horse meat had been sold as beef for burgers and kebabs.

Tangled web The details of the wider scandal show how complicated and potentially under-regulated Europe’s market for meat really is. The frozen lasagnas withdrawn from British and Irish stores were made by a Swedish company. But the product was prepared in factories in Luxembourg by a French company. That company received the tainted meat from another French company, which in turn received it from a Romanian slaughterhouse.

To make matters more complicated, the deal was apparently arranged by traders in Cyprus and the Netherlands.

And the British media report that Italian and Polish gangs are behind this multi-milliondollar criminal scheme.

Britain’s Environment Secretary Owen Paterson said, “I’m concerned that this is an international criminal conspiracy here and we’ve really got to get to the bottom of it.”

New regulations In an effort to calm worries, the European Commission invited officials from EU member states affected by the scandal for talks to find a solution.

They proposed increased DNA testing of meat products to assess the scale of this scandal.

“The tests will be on DNA in meat products in all member states,” European Union Health Commissioner Tonio Borg told reporters after this meeting.

Mr Borg also said the Commission would accelerate work on potential changes to EU labeling rules that would force companies to state the country of origin on processed meat products.

Currently the requirement only applies to fresh beef, and is expected to be extended to fresh lamb, pork and poultry from December 2014.

Horse meat consumption is not dangerous for humans, however “bute,” a painkiller used by veterinarians, has been found in eight horse carcasses at slaughterhouses in the UK. The meat from six of those horses was exported to France, where horse meat is regularly consumed.

The Veterinary Residues Committee warns that bute has “the potential for serious adverse effects in consumers, such as blood dyscrasia (a rare but life-threatening condition).” However, the drug was found in amounts that posed “very little risk to human health,” the BBC quoted England’s chief medical officer as saying.

Jacek Ciesnowski

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NEWS

www.wbj.pl

FEBRUARY 18-24, 2013

Politics

Palikot ‘rape’ comment draws ire but not by me. I’m not the type of person who is suited for that type of work,” he said, while denying an earlier accusation from Ms Nowicka that he had threatened her while asking her to resign from the deputy speaker position.

Political suicide?

The response was immediate and overwhelming. Ms Nowicka got in a jab, saying that Mr Palikot “must be suffering from a nervous breakdown. He should see a doctor immediately.”

Joanna Senyszyn, an MP in another opposition party, the Democratic Left Alliance, did not mince her words either.

“He must have lost his mind as well as his bearings on the political compass. I can only assume [former President] Aleksander KwaÊniewski won’t have the time for [Mr Palikot’s] games,” she said in an interview with the station, referring to Mr Palikot’s proposal to join forces with the former president for upcoming elections to the European Parliament.

If Mr KwaÊniewski were to turn him down, it would be a

Failed master plan The reasons behind Mr Palikot’s meltdown might have deeper roots than that, though.

According to daily newspaper Gazeta Wyborcza, the removal of Ms Nowicka from her office was to be only the first step in a strategy to get rid of the entire Sejm presidium (the speaker and deputy speakers). Apparently, he had the whole thing planned down to the props.

He is supposed to have had a big demonstration planned, with feeding troughs and pigs’ heads illustrating how members of the presidium received undeserved bonuses which they refused to return.

– Janusz Palikot Though there was a certain amount of public outrage after it was revealed that the members of the presidium had

Securing the interests of subcontractors of public procurement contracts On February 12 the government adopted draft changes to Law on Public Procurement dealing with subcontractors of public procurement contracts. The new legislation is to introduce mechanisms minimizing the risk of default in paying remuneration by the contractor to its subcontractors.

The new provisions are to impose an obligation on the contractor to submit the subcontractor agreements to the ordering party in case of public construction work

each later promised to donate their bonus money to various charities.

But Mr Palikot’s scheme

to remove the Sejm presidium went down the drain when Prime Minister Donald Tusk instructed members of his ruling Civic Platform party to vote against Ms Nowicka’s removal.

The fiasco might have stronger repercussions for Mr Palikot, including the possible breakup of his party. Civic Platform MPs have made it clear that members of Palikot’s Movement would be welcome in their ranks (Mr Palikot himself was once a member).

After nearly a week of internal debate, Ms Nowicka was finally expelled from Palikot’s Movement last Wednesday, leaving the party without representation in the presidium.

“There won’t be another deputy seat for Palikot’s Movement,” Grzegorz Schetyna, deputy leader of Civic Platform said in a radio interview with RMF FM. He added, “The Sejm has already made its decision to allow Ms Nowicka to remain in her post.”

Jacek Ciesnowski

International Contact: Miros∏aw Stefanik ms@pnplaw.pl

On February 13 a convention was signed on avoiding double taxation between Poland and the United States. The convention should be ratified by both countries in order to become binding. The document will replace the old agreement, which dates back to 1974.

The convention relates to taxation of income from real estate, interest, royalties, profits from business activity in the other country, capital gains, remunerations (such as students’ remuneration), as well as retirement and disability pensions.

received bonuses amounting to a total of some z∏.245,000 while an economic slowdown was hitting average Poles, they

“It may be that Wanda Nowicka wants to be raped, but not by me. I’m not the type of person who is suited for that type of work.”

Legal News

Poland-US Convention on Double Taxation Avoidance

Janusz Palikot is once again at the center of controversy

orders. The obligation will apply both to subcontractors performing construction work and to subcontractors providing supplies and services. In order to ensure payment the subcontractor is entitled to, the contractor itself must maintain financial liquidity during the performance of the construction work in question.

That is why the new provisions are to impose an obligation on the ordering party to make advance payments for the performance of any contract concluded for a period longer than 12 months.

Before subsequent advance payments are made, the ordering party will require proof that the subcontractors have been paid their due remuneration for the work for which the previous advance payments were made.

Accident of an employee before performance of work is commenced On February 7, 2013 the Supreme Court decided that insurance protection under the legislation on social insurance for accidents at work and work-related diseases also covers occurrences in the workplace taking place before the work itself has commenced (court ref. no. III UZP 6/12). ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Polish politicians thank Benedict XVI for his work Polish officials reacted to news of Pope Benedict XVI’s resignation with words of sadness and thanks Much of Poland’s political establishment was deeply saddened by the announcement last Monday of Pope Benedict XVI’s resignation due to deteriorating health. Poland’s President Bronis∏aw Komorowski thanked the pope for the kind words he always had for Poland and for the decisions he made during his time as pontiff.

“I would like to thank the pope for his visit to our country, and above all, for the beatification of our great compatriot John Paul II. We will always be grateful for that,” Mr Komorowski said.

Polish Prime Minister Donald Tusk also expressed his sadness at the news that the pope was stepping down, but added that it gave food for thought on the nature of human life, suffering and our own frailty.

Mr Tusk observed that the day when the pope announced

SHUTTERSTOCK

Polish politics’ enfant terrible Janusz Palikot has been battered by a firestorm of criticism after some poorly chosen remarks during an interview in early February.

The politician, who leads the socially liberal opposition Palikot’s Movement party, had been on a campaign to remove Wanda Nowicka from the grouping. This came after Ms Nowicka, a deputy speaker of the Sejm, Poland’s lower house of parliament, had refused to step down from her post despite losing the support of her party for having accepted a controversial bonus.

Mr Palikot had wanted to install Anna Grodzka, Poland’s first transsexual member of parliament, in the position. But Ms Grodzka’s candidacy never even came to a vote, after a majority of MPs voted to allow Ms Nowicka to keep her position.

Mr Palikot was visibly furious at not having gotten his way and at Ms Nowicka’s obstinacy. And his anger came out during the interview with television station TVN24.

“It may be that Wanda Nowicka wants to be raped,

significant blow to Mr Palikot’s standing, which has risen since he brought his new party to parliament as the third-biggest grouping in 2011.

SHUTTERSTOCK

The flamboyant politician made some irresponsible remarks after an apparent political scheme went awry

Benedict XVI will officially step down as pope this month his resignation was the World Day of the Sick, which had been established by John Paul II. “This is an amazing coincidence that Pope John Paul II, our pope, made [February11] the day of remembering, tenderness, and caring for all the sick,” Mr Tusk said.

Jaros∏aw Kaczyƒski, the leader of opposition and conservative party Law and Justice, said that the news of the pope’s resignation came suddenly and unexpectedly. “I pay my respects to the Holy Father for his work and for what he did for the [Catholic] church,” Mr Kaczyƒski said.

“He continued on the path which John Paul II walked for many years, at the same time drawing conclusions from the changing world,” he added.

The liberal wing of the Polish political scene was less fervent in their comments on the pope’s resignation. Former Prime Minister Leszek Miller, leader of Democratic Left Alliance, said that while the news was a surprise, it was obvious that the pope had been sick for quite some time. Mr Miller, not being Roman Catholic himself, was reluctant to comment on Benedict XVI’s pontificate.

Marta Mardosz

BUSINESS

FEBRUARY 18-24, 2013

www.wbj.pl

5

Airlines

Dreamliners becoming a nightmare for LOT Boeing’s newest planes could be grounded until fall – and the Polish carrier had built its entire strategy around them

take Dreamliner flights with LOT by the end of October, said the firm’s new CEO Sebastian Mikosz. Until then the carrier will continue to use Boeing 767s on its Dreamliner routes.

The Dreamliners might be ready for takeoff earlier, but putting them back on the flight schedule will take at least a couple of weeks, Mr Mikosz said.

But every day without its Dreamliners is money lost for LOT, which faces bankruptcy,

Leaves could be changing color by the time Poland’s troubled state-owned airline LOT flies customers on one of its Boeing 787 Dreamliners again.

Passengers will be able to

sengers, their larger business class and their better fuel efficiency – could help bring the company back from the brink.

In a strategy document released at the end of last year, the company said the addition of the Dreamliners would boost revenue by 20 percent, once they replaced the Boeing 767s currently in use.

But as a result of the battery issues, Boeing has suspended further deliveries – and LOT

just hired a new CEO and is about to fire as many as 700 workers. The suspension of all Dreamliner flights while Boeing investigates an issue with the planes’ batteries could not have come at a worse time.

The company just received z∏.400 million in government bailout money at the end of last year and could need z∏.1 billion in all. Company executives were hoping the Dreamliners – with their ability to carry more pas-

was expecting five new Dreamliners by March. The two that LOT already had in use were grounded. One remained in Warsaw, the other in Chicago, having just completed its maiden voyage.

LOT immediately took a financial hit. To replace the grounded Dreamliners, it had to extend the lease on its older 767 planes. The leasing firms, knowing LOT had little alternative, pushed for higher prices or

longer deals, Tomasz Balcerzak, a member of the company’s management board, told TVN 24.

Boeing could end up footing the bill. “We’re recording all costs related to the grounding,” LOT’s spokesperson Marek K∏ucinski told The Wall Street Journal without specifying an amount. “When the time comes, we’ll claim them from Boeing.”

Jacek Ciesnowski

COURTESY OF AZYMUT (RAFA¸M. SOCHA) AT PL.WIKIPEDIA

PHN shares gain during first day on WSE

LOT is in deep financial trouble

Shares of state-owned real estate holding Polski Holding NieruchomoÊci (PHN) finished their IPO day at z∏.23.60, marking a gain of 7.27 percent over the debut price of z∏.22.

For the week, PHN shares finished up 8.09 percent at z∏.23.78.

Poland’s Treasury Ministry sold a 25 percent stake in the IPO, and plans to sell a controlling stake to a strategic investor by the end of the year.

“It was a very good debut,”

Maciej Wewiórski, an analyst from brokerage IDMSA was quoted as saying by Dziennik Gazeta Prawna. He noted that the ratio of price to book value shows growth potential.

The price might have benefited from a statement by Deputy Minister of Treasury Pawe∏ Tamborski, who said that if needed, the Treasury could sell all of its assets to a potential strategic investor (previously it wanted to keep as much as 20-25 percent of the PHN stock). “That could mean that the company could

find a strategic investor with a plan to expand, which helped the stock,” added Mr Wewiórski.

In the first nine months of 2012, PHN recorded a net loss of z∏.142.9 million, compared to a loss of z∏.158.5 million for the whole 2011. The company estimates its net value of assets at z∏.1.75 billion z∏oty.

The firm is the 439th to be listed on the Warsaw Stock Exchange and is the second debutant on the bourse’s main market in 2013.

Jacek Ciesnowski

Telecommunications

Black Tuesday for TP Warsaw stock exchange-listed Telekomunikacja Polska (TP) noted a record dive in its share price of some 30 percent to z∏.8.10 on Tuesday, February 12.

The drop came after the former telecommunications market monopolist published its financial results for the last quarter of 2012, which showed an 86 percent decrease in profits year-onyear to z∏.51 million in 2012 from z∏.358 million a year earlier.

The company also announced that the dividend it plans to pay out this year will be significantly lower than last year’s, at only z∏.0.50 per share as opposed to the z∏.1.50 per share it paid out for 2011.

The firm’s CEO, Maciej Witucki, blamed this unprecedented slump in share price on lower mobile transfer rates (charges one operator pays to another for terminating calls on its network), introduced in December 2012 by Poland’s tele-

coms regulator, UKE, as well as on price wars with mobile network operators.

Analysts attribute the fall not only to the new regulations but also to the overemployment in the company, as well as to an overall deteriorating situation in the telecommunications market.

According to Mr Witucki, the company will seek to improve its liquidity by selling some of its well-performing assets, such as internet portal Wirtualna Polska, which brought in about z∏.180 million in revenue last year.

TP’s stock plummeted despite the news of the company merging with its sub-

sidiary Polska Telefonia Komórkowa Centertel, the operator of the Orange network in Poland.

The merger is to bring all the company’s major assets together and will require significant reductions in staff.

The operator is already preparing to lay off 1,700 employees this year and is considering further redundancies in the future.

Until now TP had been considered a defensive stock – a stable investment at times of crisis – as people rarely skimp on communications expenses, even with their incomes significantly undercut by recession.

COURTESY OF TP

The Polish telecommunications giant’s share price hits an all-time low

TP’s profits slumped last year

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6

BUSINESS

www.wbj.pl

Automotive industry

FEBRUARY 18-24, 2013

Music

Fiat to manufacture the CD, digital music sales next 500 model in Tychy? increase in Poland Italian car maker Fiat currently makes its 500 model in both Tychy, Poland and Toluca, Mexico. But in 2015 it plans to shift all production of the nextgeneration 500 model exclusively to Poland, Automotive News reported last week.

The Tychy plant has been producing 500s for more than five years for European markets, while its Mexican counterpart supplies North and South America, as well as China.

“Building the next 500 in Fiat’s Tychy plant will increase capacity utilization there. It will also free capacity in Toluca for Chrysler to build core products for North America,” Massimo Vecchio, a financial analyst at Mediobanca Securities in Milan told the newspaper.

Such a decision would give a much-needed boost to the Tychy plant, which has been suffering from declining car sales in Europe and Fiat’s 2011 decision to move the production of its Panda model to Italy.

The sales of CDs in Poland amounted to z∏.344 million in 2012 up from z∏.300 million in 2011, according to EMI Music Polska. This makes Poland an important exception compared to other countries, where sales of music in traditional formats are decreasing, Piotr Kabaj, president of EMI Music Polska told daily Rzeczpospolita.

Poles preferred local sounds, with the albums of Polish artists dominating the top 10 of the most popular records in the country.

That’s according to the Official Retail Sales Chart (OLiS) compiled by pollster TNS Pentor and the Polish Society of the Phonographic Industry.

The best selling album in Poland last year was “MyÊliwiecka” by Artur Andrus (Mystic Production). While Adele’s “21” (XL Recordings/Sonic), Lana Del Rey’s “Born to Die” (Universal Music) and Gotye’s “Making Mirrors” (Universal Music)

The Tychy plant in Poland could take over production of all Fiat 500s by 2015 Since then the factory has been operating below production capacity and at the end of last year Fiat started the process of laying off 1,450 of its workers.

At the North American International Auto Show in Detroit last month, FiatChrysler CEO Sergio Marchionne said that Chrysler’s North American plants are

nearing full capacity. He added that before opening plants in North America, he would try to make full use of Fiat’s European plants to satisfy FiatChrysler global demand.

So far, Fiat has invested €300 million in developing a new generation of 500s, which are expected to debut before the end of 2015.

Jacek Ciesnowski

ranked second, third, and ninth respectively, the remaining six spots were taken by Polish musicians.

But while CDs were the most popular format, digital music formats are gaining. The value of the market in Poland rocketed from z∏.24 million in 2011 to z∏.44 million in 2012, according to EMI. Consultancy PwC estimates that 2013 revenues from this sector in Poland will reach $17 million, with CD

sales at $105 million.

Streaming services are growing more popular as well.

In mid-February Spotify began offering its streaming service in Poland. Spotify already has competition in the Polish market with firms like Deezer, WiMP and Rara, but there is an increasingly large market as well. According to EMI, revenues from streaming services rose 80 percent y/y in 2012.

Marta Mardosz

SHUTTERSTOCK

Poles still buy CDs in droves, though digital formats are rising in popularity

SHUTTERSTOCK

The decision could reinvigorate a troubled Polish manufacturing plant

Media patronage

COURTESY OF CEBIT

Poland to be the showcase at this year’s CeBIT

Reinhold Umminger, vice president of CeBIT

Reinhold Umminger, senior vice president of CeBIT talks about Poland’s participation at the upcoming CeBIT fair and the potential for Polish-German cooperation in the ICT industry Why was Poland chosen as the CeBIT Partner Country this year?

The Republic of Poland has undergone remarkable changes in recent years. Visitors to Poland’s CeBIT 2013 showcase will discover one of the world’s most exciting up-and-coming economic powers and a highly attractive foreign direct investment location with enormous potential.

The choice of Poland as CeBIT Partner Country will benefit both Poland and Germany as well as all CeBIT exhibitors and attendees. For the international companies and institutions at the fair, Poland is an important gateway to Eastern Europe. And for the participating Polish exhibitors, CeBIT is a key international market development platform.

What makes Poland and its companies so interesting?

Poland has a special significance for Germany and for many other nations because, despite growing international competition, the country is regarded as one of the most attractive business locations in Central and Eastern Europe.

The Polish ICT market has grown at above-average rates for many years and the country has an enormous supply of highly-qualified professionals in all digital industries, which makes it a great place to do business, particularly considering the skill shortages we see in many other developed countries today.

Which Polish companies will be participating at CeBIT 2013?

Around 150 Polish companies, universities, research institutions and technology parks will be exhibiting at this year’s show. Apart from its national pavilion in Hall 6, Poland will be represented at all four CeBIT platforms (pro, gov, lab and life).

Polish exhibitors include leading ICT companies, such as Comarch, but also numerous SMEs and startups. More than 20 start-ups will be represented at the group pavilion in Hall 11 alone.

A number of discussions are planned for CeBIT 2013. Which Polish companies and experts will take part in the events and what will they talk about?

The Polish-German ICT Summit on Tuesday, March 5, which is the first day of CeBIT, will be complemented by a number of additional discussions with Polish experts. For instance, “Polish Day” on Wednesday will profile Poland as one of the key growth drivers in the European Union. Attendees will learn about the Polish success model and the full spectrum of the country’s cluster development. They will also be able to network with young Polish companies and agencies responsible for facilitating the process of setting up businesses in the country.

On Thursday, the BITKOM SME Forum will explore “Market Opportunities for SMEs in Poland.” There, SMEs will learn about the enormous potential of the Polish ICT market and the specific issues they need to consider before entering the market.

The “Poland meets Europe” event on Thursday afternoon is all about helping European ICT companies find new business partners in Poland. The event will also highlight the Polish ICT sector with all its facets, focusing, in particular, on the innovative power of Polish companies and institutions.

Who will be at the CeBIT Opening Ceremony?

The lineup of keynote speakers at the CeBIT opening ceremony includes Poland’s Prime Minister Donald Tusk, German Chancellor Angela Merkel, the president of Germany’s BITKOM digital industries association, Dieter Kempf, and Thomas Enders, CEO of the European aerospace corporation EADS. Poland’s Deputy Prime Minister Janusz Piechociƒski will also be attending.

Who will participate at the PolishGerman ICT Summit on Tuesday, March 5? What’s the agenda and purpose of the summit?

The Polish-German ICT Summit will be attended by high-ranking representatives from business and politics.

They will talk about the ICT industries in both countries and explore the options for further intensifying German/Polish business collaboration.

The delegates include Wac∏aw Iszkowski, president of the Polish Chamber of Information Technology and Telecommunications (PIIT), Andrzej Malinowski, president of the Chamber of Polish Employers and BITKOM president Dieter Kempf. ●

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8

INTERVIEW

www.wbj.pl

FEBRUARY 18-24, 2013

Health care

Understanding in vitro Karolina Kowalska: How many of your patients are from abroad?

Dr Tomasz Rokicki: Approximately seven percent of our patients come from different parts of Western Europe, the United States of America or even Australia. Just today I spoke to a Swiss journalist who wanted to know why our clinic is so popular with the Swiss.

Considering the ideological divisions in our parliament on the in vitro fertilization, one could hardly expect Poland to be the destination country for people trying to get pregnant.

How is this possible?

Our patients from abroad don’t know or care what politicians have to say on the in vitro matter. They come here to get high-quality treatment for half the price they would have to pay in their countries or to undergo procedures that are

unavailable there. It is Polish patients who are hurt by the delays in the proposed state refund policy, which is caused by the disputes between rightand left-wing factions.

Where exactly do your European patients come from?

One group of our patients from abroad are Poles residing in other European countries.

They come here to treat their infertility, because they feel safer, closer to their families and, most of all, they feel they can communicate better and thus get better quality of care when the doctor speaks their mother tongue.

There is also a group of foreign patients who have attempted in vitro fertilization unsuccessfully in their homeland or in another country and are now trying their luck here.

These people usually find us on the internet. European Union

citizens usually decide to come to Poland because it’s cheaper.

They have gone through all the government-subsidized programs at home and now would have to pay for the procedures themselves if they wanted to continue the treatment. Our prices are still about half of those in the UK and about 30 percent lower than in other European countries. One complete round of treatment costs around z∏.10,000. There are also those who come to Poland to undergo procedures that aren’t allowed in their own countries.

cells. But it was up to the countries’ governments whether to allow egg or sperm donation and cryopreservation in liquid nitrogen or the adoption of embryos. In Germany and Norway egg donation is forbidden, while in Italy you can’t donate either eggs or sperm. In other countries you can’t preserve embryos for more than a few years. There are no such restrictions in Poland.

Are we the most liberal country in Europe, then?

Not exactly. In Poland it is impossible to use surrogate mothers, so we can’t help same-sex male couples, for instance. There are no restrictions on that per se, but according to the law, the woman who gives birth is the child’s mother, and thus its legal guardian.

There is no way to legally claim your child from the woman who carried the child to term, even though it has your genes.

In the UK, where surrogacy is legal and controlled by the state, there are special supervising bodies and the whole process is precisely regulated by the law. The whole process is handled by state institutions.

Does it mean that Poland is more liberal in terms of fertility procedures than other EU countries?

Contrary to what you might think, it is. In Poland there are no regulations and therefore no restrictions regarding sperm, egg and embryo donations. The majority of EU countries have implemented Directive 2004/23/EC on setting quality and safety standards for the donation, procurement, testing, processing, preservation, storage and distribution of human tissues and

COURTESY OF INVIMED

WBJ sits down with Tomasz Rokicki, chief of medicine at InviMed European Centre of Motherhood, one of the leading fertility clinics in Poland, to talk about the medical, social, political and business aspects of treating infertility

Dr Tomasz Rokicki It is also forbidden to advertise for a surrogate or to offer your womb for surrogacy. Surrogate mothers only receive reimbursement of the expenses incurred during pregnancy and no other payment is allowed.

All the potential surrogates are thoroughly screened both phys-

ically and mentally to prevent complications. I believe this very sensitive process is handled very well there.

You mentioned you cannot treat same-sex male couples.

What about lesbians?

Of course we can treat them.

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INTERVIEW

FEBRUARY 18-24, 2013

Most of them prefer not to disclose their sexual orientation, although we would never discriminate against them. We are willing to help lesbian couples just as much as we want to help the married ones. Sometimes, lesbian patients come to our office with a male friend and introduce him as their life partner. The truth usually comes out anyway when the future father has to sign a document stating he will assume legal responsibility for the child.

Even more frequently, lesbian patients come to our clinic claiming they are single and decide to undergo in vitro fertilization or insemination with donor sperm.

In my opinion, this is the best way for them to conceive, much better than “do-it-yourself” methods, like looking for a sperm donor on the internet or buying sperm that wasn’t properly tested by a health care professional. Such actions are risky as there is no screening for HIV or other STDs. If a woman comes to a clinic, she can be sure that the sperm has been thoroughly tested and the donor went through a strict qualification process.

Is sperm donation in Poland very technologically advanced?

There are a few sperm banks in Poland but we use the Cryos bank from Denmark, the world’s largest sperm bank, which provides healthy sperm and gives our patients the opportunity to choose the donor not only on the basis of impersonal data such as his height, weight, as well as his hair and eye color, but also allows them to, for example, see his childhood photos.

What is important from the medical point of view is that the sperm is tested, preselected and free from any contagious diseases. It is also safe from the ethical perspective, as the donor’s sperm can only be used up to six times and by recipients that live in different countries or different parts of a country.

This way, the risk that the children conceived from the same sperm might someday meet is minimal.

Is there an age limit for your patients? Do you treat 60-yearolds, for example, like the famous French lady who gave birth at 62?

We have decided to set the limit at 43 for women undergoing in vitro fertilization with their own egg and 49 for those who will carry an adopted embryo or her own, previously frozen one. But the success rate in 49-year-old patients is significantly lower than in younger ones. Still, 75 percent of our patients are couples in their 30s. The number of patients aged 35-42 is increasing steadily. They account for 30 percent of all the procedures we carry out. There is also an increasing number of women who decide to retrieve and store their eggs

in our clinic so they have a better chance of becoming mothers once they have found a life partner or achieved their career goals.

How much do you pay for retrieving and storing eggs?

The procedure itself costs approximately z∏.3,000, almost a third of what you have to pay for the whole in vitro procedure. Then you pay about z∏.300 a year. There are no time limits for egg storage. Among patients who decide to freeze their eggs there is an increasing number of cancer patients who want to make sure they will have a shot at becoming mothers even when their reproductive systems are damaged by chemotherapy.

Women who decide to preserve their genetic material are usually successful upper middle-class professionals in their mid-30s. We are observing however that the profile of our patients, not only those who want to store eggs, but also those who come for the full in vitro procedure, has slightly shifted away from more affluent towards medium-income families.

How can they afford it?

That’s what breaks my heart.

Such programs should be subsidized by the state, especially since it is estimated that 30,000 couples suffer from fertility problems and only 8,000 can afford treatment.

Now, with the government project of subsidizing fertility treatment currently being discussed in the parliament, there is a slight chance the procedure will be free of charge for couples who have problems conceiving on their own. Couples would only have to pay for the drugs, while the majority of the cost – that of the procedure – would be covered by public health insurance. The program would be available to couples over 30 years of age who have been trying to conceive for at least a year and can produce proof of this in the form of medical records. Such couples will be granted three rounds of treatment to be conducted over three years.

How many rounds of treatment does it take to conceive for couples treated in your clinic?

Usually it takes up to three rounds but, theoretically, we could conduct even 10. However, from the medical standpoint, it is safer to try different options if the first three to five rounds of treatments have proven ineffective. A couple can always adopt an embryo.

But usually most of our patients conceive during the first three in vitro procedures. There are only about 10 percent that can’t be cured. It is a shame the politicians don’t see how important government subsidies are in this case. It would be a huge financial relief to many couples if their treatment were financed

from their health insurance.

How do you feel when rightwing politicians say in vitro is morally wrong?

I try to look at the current dispute in parliament from a different angle. Parliamentary debates on in vitro fertilization can be educational not only for politicians themselves but also for the public.

Nowadays, if asked, most of the members of parliament can answer what an embryo, an egg, or in vitro is. Through the debates they’ve learned a lot about the procedure and what it entails. And knowledge facilitates public discussions among doctors, politicians and clergymen alike.

Apart from ethical issues, in vitro might be feared because of its financial aspect. Isn’t z∏.10,000 for 30,000 people an enormous cost, especially in the face of the crisis we are battling?

Not if we are thinking of the long-term future of our society.

It is no news that our demographic situation is deteriorating. Soon we will have to find ways to increase our country’s birth rate. Why shouldn’t we start with those who really want children and are ready to bring them up, but need some medical help?

Speaking of money, according to analysts from abroad, fertility medicines have profit margins of up to 30 percent. It is estimated that the market is worth as much as z∏.135 million. Is it really that good a business?

Polish reality can’t be compared to the one in other EU countries, where the market is stable and the EU fertility treatment directive implemented. We are still investing, not only in machines, but also in know-how and technology. There are four major fertility clinics in Warsaw – us, Novum, Invicta and the Obstetrics and the Gynecology Clinic of Warsaw Medical University in the Starynkiewicza hospital. ¸ódê-based Gameta was trying to expand to the Warsaw market but to no avail. It is not an easy field, either in terms of medicine, or in terms of business. People might think we make millions, but the majority of our income must be re-invested in technology, machines and staff training.

Invimed has succeeded and was recently bought by Medicover group, which already operates in 12 countries. Where did the decision to merge come from?

Nowadays, it is impossible to expand without a powerful partner. Becoming part of Medicover group gives us the chance to further expand not only within Poland but also to Eastern Europe. Soon we will be setting up our fertility clinics there. It is a huge step for us. ●

www.wbj.pl

9

OPINION & ANALYSIS

FEBRUARY 18-24, 2013

www.wbj.pl

11

Palikot: the left’s false prophet Remi Adekoya

W

hen the newly created Palikot’s Movement won 10 percent of the vote in the 2011 parliamentary elections, the party was hailed by many social liberals as a breakthrough on the Polish political scene.

Janusz Palikot, an eccentric politician and former Civic Platform MP, had managed to establish a party which now had the third-highest num-

“Janusz Palikot has always been a chameleon.” ber of MPs in parliament despite supporting the legalization of marijuana, the sanctioning of civil unions, easier access to abortion and the cessation of religious lessons in Poland’s classrooms.

To many on the left, Mr Palikot seemed a breath of fresh air, a taboobreaker who deserved the support of Poland’s enlightened.

she had done nothing improper.

Few politicians can match the rate of Janusz Palikot’s media appearances in recent years. But the eccentric politician’s run may now be over, as he is being criticized by the very people who used to sing his praises.

Left and right against Grodzka As expected, the conservative opposition Law and Justice party was against Ms Grodzka’s candidacy.

But more surprisingly, the ruling center-right Civic Platform and the Democratic Left Alliance, a rival of Palikot’s Movement on the left, combined to vote for Ms Nowicka to stay on as deputy speaker, despite the fact that she had lost her party’s support.

Civic Platform voted to keep Ms Nowicka because it wanted to avoid a troublesome vote on Anna Grodzka.

The party leadership simply didn’t know how its conservative MPs would react to her candidacy. And Prime Minister Donald Tusk did not want his party to be perceived as responsible for having blocked Ms Grodzka from becoming deputy speaker.

The Democratic Left Alliance, on the other hand, did not want Palikot’s Movement to be able to bask in the glory of having made progressive history by making a transsexual MP deputy speaker. That would have given a serious boost in popularity to

Close to history Last week, Mr Palikot’s party was on the verge of making political history after it nominated Poland’s first transsexual MP, Anna Grodzka, to be its deputy parliamentary speaker.

Tradition has it that each party in parliament is entitled to a deputy speaker, and so when Palikot’s Movement said it was withdrawing its support from Wanda Nowicka, who had been its deputy speaker, in favor of Ms Grodzka, many progressives saw an historic opportunity.

Janusz Palikot said that Ms Nowicka, a prominent feminist, had secretly received a z∏.40,000 cash bonus from the parliamentary speaker without informing the party. Thus, she had compromised its principles and had to go, reasoned Mr Palikot. Unfortunately for him, Ms Nowicka refused to resign, standing her ground and saying

Palikot’s Movement among progressive voters.

So Mr Palikot had a problem on his hands. But instead of trying to outmaneuver Ms Nowicka off camera, the controversial politician made a terrible blunder on air.

Nothing surprising Frustrated at Ms Nowicka’s insistence on clinging on to her deputy speaker position and defying his will, Mr Palikot said, “It may be that Wanda Nowicka wants to be raped, but not by me. I’m not the type of person who is suited for that type of work.”

As could be expected, the controversial politician has been on the receiving end of a firestorm of criticism since then. Meanwhile, Polish conservatives are rejoicing. Not only was Anna Grodzka not made deputy speaker, but the leader of the party considered social progressives’ hope is now being labeled a chauvinist as well.

But to those who have followed Mr Palikot’s rise closely, his statements were no surprise.

The man’s political career has been built on insults and derogatory

comments, which he continually makes about his conservative political opponents. Liberals made the mistake of embracing him, adopting the “my enemy’s enemy is my friend” rule.

But Janusz Palikot has always been a chameleon. He was once the publisher of an ultra-conservative socio-economic weekly, only to turn around and start portraying himself as Poland’s leading social liberal. He has made homophobic statements while at the same time claiming that he supports gay marriage.

This is a man who will say anything to get elected. Don’t be surprised to see him at an Opus Dei meeting if he felt that would benefit him politically.

Mr Palikot is not a worthy leader of the progressive cause in Poland. He is a nihilistic opportunist and it is time he is cast away by the progressive movement in Poland. There must be a better progressive leader out there, somewhere.

Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Is the euro crisis over?

Jean Pisani-Ferry

T

hree years ago, the euro crisis began when Greece became a cause for concern among policymakers and a cause for excitement among money managers. Since the end of 2012, a sort of armistice has prevailed. Does that mean that the crisis is over?

Inflection point?

By the usual standards of financial crises, three years is a long time. A year after the collapse of Lehman Brothers in September 2008, confidence in the United States’ financial system had been restored, and recovery had begun. A little more than a year after the 1997 exchange-rate debacle triggered Asian economies’ worst recession in decades, they were thriving again. Has the euro zone, at long last, reached the inflection point?

Many battles have been fought over the last three years – over Greece, Ireland, Spain, and Italy, to name the main ones. The European Union’s financial warriors are exhausted.

Hedge funds first made money betting that the crisis would worsen, but then lost money betting on a euro zone breakup. Policymakers first lost credibility by being behind the curve, and

then recouped some of it by embracing bold initiatives. Recent data suggest that capital has started returning to southern Europe.

The current change in market sentiment is also motivated by two significant policy changes. First, European leaders agreed in June 2012 on a major overhaul of the euro zone. By embarking on a banking union, which will transfer to the European level responsibility for bank supervision and, ultimately, resolution and recapitalization, they showed their readiness to address a systemic weakness in the monetary union’s design.

Second, by launching its new “outright monetary transactions” scheme in September, the European Central Bank took responsibility for preserving the integrity of the euro zone. The OMT program was a serious commitment, and markets interpreted it that way, especially as German Chancellor Angela Merkel backed it, despite opposition from the Bundesbank.

Reasons for concern Unfortunately, however, there remain three reasons to be concerned about the future. For starters, politics lags behind economics, which in turn lags

behind market developments. Sentiment at trading desks in New York or Hong Kong may have improved, but it has deteriorated on the streets of Madrid and Athens.

Indeed, the economic and social situation in southern Europe is bound to remain grim for several years. As things stand, all southern European countries are facing the prospect of a true lost decade: according to the International Monetary Fund, their per capita GDP will be lower in 2017 than it was in 2007. As long as sustained economic improvement has not materialized, political risk will remain prevalent.

Political upheaval in any of the southern countries would be sufficient to reignite doubts about the euro zone’s future. Furthermore, French competitiveness, and the gap between its performance and that of Germany, is a growing cause of anxiety.

The second reason to worry is that there is limited consensus in Europe on what, exactly, is needed to make the monetary union resilient and prosperous again. Banking union is a positive development, but there is no agreement on additional reforms,

such as the creation of a common fiscal capacity or a common treasury.

In particular, northern Europe continues to interpret the crisis as having resulted primarily from a failure to enforce existing rules, especially the EU’s fiscal-stability criteria.

Southern Europe is more inclined to view the crisis as having resulted from systemic flaws. Furthermore, northern Europe regards austerity as the mother of all reforms, while southern Europe fears that governments may not have enough political capital to do everything at the same time.

Finally, the last three years have revealed a clear pattern in the management of crises: Almost no decision results from serene deliberation, with most taken under financial-market pressure in an attempt to avoid the worst. Each time the pressure abates, plans for policy reform are put off – an attitude best captured in Merkel’s famous ultima ratio: action is undertaken only if it is indispensable to the survival of the euro.

Missing an opportunity None of this means that the euro will collapse. The widely held conviction that letting the monetary union break

up would amount to collective economic suicide provides a strong motivation to weather storms and overcome obstacles. Moreover, the results achieved so far may well prove sufficient to contain risks in the near future, while plans for a fiscal capacity, common bonds, and the creation of a European treasury are still being sketched. So, in practical terms, the difference between reforms that could be implemented and those that are being or will be implemented is less significant than it seems.

But, by consciously eschewing discussion about which reforms would make membership in the euro zone less hazardous and more beneficial for all, European leaders are missing an opportunity to signal that the euro is a stepping stone toward a prosperous, resilient, and cohesive union.

Jean Pisani-Ferry is director of Bruegel, an international economics think tank, professor of economics at Université Paris-Dauphine, and a member of the French Prime Minister’s Council of Economic Analysis.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

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

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

PRINT & DISTRIBUTION COORDINATOR

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

PR & MARKETING SPECIALIST

KATARZYNA MAREK (KMAREK@WBJ.PL)

BOOK OF LISTS SPECIALIST

MONIKA BRYSIAK (MBRYSIAK@VALKEA.COM)

SUBSCRIPTIONS MANAGER

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

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

12

FINANCE & ECONOMICS

www.wbj.pl

FEBRUARY 18-24, 2013

Trade

They have risen by 21 percent since 2008 In 2012, the value of Polish exports rose by 4 percent yearon-year and was worth €145.9 billion, the latest data from the National Bank of Poland show.

Since 2008, when the global economic crisis began, Poland’s exports have risen by 21 percent, an impressive result considering that over 75 percent of Polish exports go to EU markets, which have been hit hard.

Overall, the total value of Polish exports amounted to 47.5 percent of Poland’s GDP. That is slightly less than Germany’s export-to-GDP ratio

(51.9 percent), but significantly higher than that of other large EU economies, such as the United Kingdom and France (31.9 and 27.5 percent respectively, according to IMF estimates).

However, trade with EU member states is slowing down while the value of exports to other, mostly Eastern European countries is rising – by some 22 percent since last year, to €14 billion.

Though the value of exports has continued to increase, Poland still imports more than it sells abroad. In 2012 the country imported €150 billion worth of goods, mostly from the EU (57 percent, according

to Poland’s statistics office).

Poland’s trade balance with other EU countries is positive, yielding a surplus of about €21.1 billion. The deficit results from trade with Eastern European countries (Albania, Belarus, Croatia, Moldova, Russia and Ukraine) and developing nations from other regions. Poland’s trade deficit with Eastern Europe comes to €18.3 billion and to €10.6 billion with developing countries, according to the NBP data.

In total, NBP data showed Poland’s trade deficit came to €5 billion, 50 percent lower than the €10 billion deficit it recorded in 2011.

University graduates entering the Polish job market in 2012 had better financial prospects in Warsaw than in any other big city in the country, according to a nationwide study of earnings carried out by HR advisory Sedlak & Sedlak.

In 2012 Warsaw offered its employees with Masters degrees the highest earnings, with a median salary of z∏.6,778. Three cities – Gdaƒsk, Poznaƒ and Wroc∏aw – came in second with a median pay of z∏.5,000. ¸ódê ranked last among the six cities examined in the report, with a median salary of z∏.4,150 monthly.

College graduates in Gdaƒsk, Kraków and Wroc∏aw had to work on average nine

SHUTTERSTOCK

Warsaw most promising Polish exports continue for graduates steady growth

Warsaw offers the highest-paid jobs for young workers hours and 20 minutes every day to earn as much as their peers made in Warsaw in only eight hours. Poznaƒ came in fifth with 10 hours of work.

Among the major Polish cities

included in the study, ¸ódê offered the lowest pay, with graduates having to put in 11 hours and 12 minutes of work to keep up with their WarsawMarta Mardosz based peers.

Jacek Ciesnowski

Labor Ministry: unemployment RPP member says council should keep cutting interest rates rate won’t hit 15% Though the unemployment rate seems to be edging toward 15 percent, it won’t get that far, Deputy Labor Minister Jacek M´cina said last week.

The ministry recently estimated that January unem-

ployment reached 14.2 percent, and Mr M´cina said that in February it could go all the way up to 14.6 percent. But March will see seasonal effects kick in, when construction and tourism pick up, meaning unemployment

should drop, he added.

He also predicted that if the economy begins to pick up in the second half of the year, the unemployment situation should significantly improve by year-end.

AS

The National Bank of Poland should continue cutting interest rates in order to boost economic growth, according to Anna Zieliƒska-G∏´bocka, a member of the NBP’s rate-setting Monetary Policy Council (RPP).

“Given the weak economic data and the lack of any infla-

tionary impulses, the 100 basispoint reduction we’ve done so far isn’t enough. Deeper cuts may be necessary,” the monetary-policy maker said. In her opinion, the rate cuts need to be done in “a concentrated period of time before shifting to a wait-and-see mode, especially

given expectations the economy could begin recovering in the second half of the year.”

The NBP cut its benchmark seven-day reference rate a quarter-point to 3.75 percent in early February. It was the fourth 25-bp cut in as many AS months.

COVER STORY

FEBRUARY 18-24, 2013

www.wbj.pl

European Union

Treasury to sell Energa stake

Poland gets its Marshall Plan The EU budget summit is being widely viewed as a victory both for Poland and for Prime Minister Donald Tusk, who immediately after the budget summit said, “This is one of the happiest days of my life. I don’t think I will ever be able to do something like that for Poland again.”

Even though Europe’s financial framework for 20142020 projects budget spending at €960 billion, some €38 billion less than in the previous seven-year plan, Poland managed to get as much as €105.8 billion (about z∏.441 billion), over €4 billion more than it was given in the 2007-2013 budget.

Later, at a press conference, Mr Tusk explained that the new budget “is not the result of one-night tactics but of the strategy of the last five years.” According to the prime minister, this strategy involved effective supervision over how EU funds are spent and selecting the right people for the job.

Poland’s Foreign Minister Rados∏aw Sikorski called the new financial framework “a

belated Marshall Plan for Poland” that would enable the country “to finish the physical modernization of Poland, the building of roads, rail and scientific infrastructure, and will be a chance for us to catch up,” he said in an interview with Polish Radio.

Words of joy and praise for the prime minister resounded in Polish media for days.

“Prime minister triumphant,” wrote financial website Money.pl, “Big bucks for Poland…” read Gazeta Wyborcza’s headline. Almost immediately after the summit Mr Tusk announced he would soon start touring Poland, conducting public consultations to find the best uses for the EU money.

Poland gets the biggest piece of the cake Poland will be entitled to €72.8 billion from the cohesion policy funds, which is an increase from the €69 billion in the 2007-2013 budget, and to €28.5 billion from the agricultural fund, which is €1.6 billion more than in the previous seven-year period.

The new EU budget is in fact advantageous for many, mostly for the UK, the Netherlands and Germany, who advocated strong austerity measures and succeeded in chopping off a big chunk of the EU budget.

German Chancellor Angela Merkel has managed to

Big bucks for Poland Poland is the biggest beneficiary of the EU’s 2014-2020 cohesion policy (in € billions) 80

60

40

Beata Socha

Winners and losers of the budget deal do away with the looming threat of the EU becoming a “transfer union” with southern countries relying on German tax money to stimulate their crisis-ridden economies. British Prime Minister David Cameron came out victorious in maintaining concessions negotiated in the 1980s by Margaret Thatcher.

Among the biggest losers are France, Italy and Spain.

French President François Hollande wasn’t coy about his disappointment at the agreed budget proposal. When asked if this was the budget he wanted he openly admitted, “I would say if I were alone, no, it would have been different,” and admitted at a press conference that he felt it was his responsibility to agree to the best possible deal France could get in the difficult European situation.

There were some long faces in the CEE region, too.

Neither the Czech Republic nor Hungary fared as well as Poland did in the latest budget proposal. The funds that the Czech Republic will receive is set to fall by over €6 billion, while Hungary’s slice of cohe-

sion policy funds shrank by 20 percent in comparison with the 2007-2013 budget.

Getting the European Parliament on board Poland seems fully entitled to celebrate its big win. Provided the European Parliament, whose votes are known to have been somewhat unpredictable at times, doesn’t take it all away in one fell swoop.

Among MEPs there are those who predict problems with the adoption of the budget, which, according to the Lisbon Treaty, must be ratified by a majority in the European Parliament. European Parliament President Martin Schulz called the budget proposal “the most backward budget in the history of the EU,” and even threatened to hold a vote by secret ballot so MEPs would be more willing to break from their official policy line dictated by their prime ministers.

European Council President Herman Van Rompuy warned MEPs against treating the matter too lightly and said that “the survival of whole regions and communities is at stake here.” He added, “You

should really think twice before rejecting the budget.”

The Polish government does not, however, believe the European Parliament will be particularly interested in vetoing the EU budget.

“I believe the European Parliament may change a few details and these changes are likely to be beneficial for Poland,” Minister of Finance Jacek Rostowski told TVN24, adding that “they will be less about the levels of funding … and more about the conditions.”

Poland’s opposition parties are less optimistic about the future of the EU budget. “It’s not a done deal,” said Law and Justice’s member Witold Waszczykowski in an interview for Polish Radio. “Some European Parliament deputies are already talking about vetoing [the budget]. There could be a problem adopting it,” he added.

Nevertheless, Prime Minister Tusk has said he is hopeful that negotiations under the Irish EU presidency will lead to approval of the EU budget in the spring – in a form which is optimal for Poland. ●

20

Roads, jobs and agriculture 0

PL IT ES RO HU CZ PT DE FR SK EL UK HR BG LT LV EE SL BE SE NL FI IE AT MT DK CY LU

EU funds for Poland from the 2014-2020 budget (in € billions) 70 66 62 58 54 50 2014

2015

2016

2017

2018

2019

2020

Source: Estimates by Ministry of Foreign Affairs

Poland’s Treasury Ministry wants to sell up to a 35% stake in the country’s fourth-largest utility provider Energa in its upcoming IPO. Energa’s stock exchange debut is scheduled for the end of the second quarter of 2013. The Treasury now holds an 85% stake in the company.

Play and T-Mobile win frequencies COURTESY OF MACIEJ ÂMIAROWSKI/KPRM

While most international media attention focused on UK’s triumph at the EU budget summit, it may in fact be Poland who came out the biggest victor

13

When asked what the EU money will be spent on, Minister of European Affairs Piotr Serafin emphasized that Poland managed to secure not only the biggest chunk of the EU budget but also the highest level of flexibility in allocating it.

El˝bieta Bieƒkowska, minster of regional development, explained that local governments will be free to allocate as much as 39 percent of the EU funds, as opposed to 25 in the previous framework.

Ms Bieƒkowska said that the new funds will be spent mostly on boosting entrepreneurship and improving the cooperation

between universities and businesses. A large portion of the funds will be invested in transport, mostly railway networks, waste disposal and recycling and in the energy sector.

Some money has also been earmarked for supra-regional aid for the poorer eastern Poland.

According to Mr Tusk, the majority of the funds will be invested in development – and hence employment. “I dedicate this money to all those having a hard time finding a job,” said the prime minister, adding that EU funds were the best guarantee for development and could not be squandered away. ●

P4, the operator of the Play mobile network and Polska Telefonia Cyfrowa (T-Mobile), are the winners of an auction for 1,800 MHz frequencies in wireless services. P4 offered to buy three frequency packages, while PTC filed offers for two packages. Both companies now have 12 months to start operating on the packages they won.

Gas pipeline to be ready in 2014 Gaz-System, the company that manages Poland’s natural gas transportation network, will launch the construction of a northsouth gas link in 2014.

The pipeline will start at the LNG Terminal in ÂwinoujÊcie and lead to the south of Poland, the Czech Republic, Slovakia, Ukraine and countries in Southern Europe. GazSystem estimates the construction cost at z∏.4.5 billion. About 30% of the financing could come from EU funds.

Poland’s trade deficit up Poland’s foreign trade deficit for 2012 was €9.7 billion, the Central Statistical Office announced. Polish exports amounted to €141.9 billion, up by 3.8% y/y, while imports stood at €151.7 billion, down by 0.6% y/y. Polish exports to countries such as Russia, Ukraine, the UK, Slovakia, the Netherlands, the Czech Republic, Germany and France were higher than in 2011. Imports rose from Russia, the US, South Korea, China, the Netherlands and the Czech Republic. ●

AIM Poland Office

•

phone: +48 500 075 046 • email: barbara.owerczuk@aimcongress.com

Construction has launched on Galeria Warmiƒska, set to be one of the largest shopping malls in Poland

Lokale Immobilia’s exclusive interview with the new head of Starwood in Poland 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

Galeria D´biec to be launched Red Real Estate Development will soon begin the construction of its Galeria D´biec shopping center, located on ul. 28 Czerwca 1956 r. in Poznaƒ. The investment, offering 9,770 sqm of commercial space and 358 parking spaces, will be erected near Lasek D´binski and the Red Park housing estate, which the firm has been building since October 2011.

Buma to build offices in Kraków A new 18,000-sqm office building will be built on ul. Stefana Rogoziƒskiego in Poland’s former capital

by Kraków-based developer Buma Inwestor, part of the Buma Group. The building will have an underground garage. The developer is currently working on obtaining construction permits. ●

In this issue Luxury apartment sales . . . . . .15 Wiślany Mokotów . . . . . . . . . . .15 Starwood interview . . . . . . . . .16 Galeria Warmińska . . . . . . . . . .17 Sepia Hotel in Bydgoszcz . . . . .17

Million-z∏oty apartments selling well Despite the crisis, the most luxurious apartments are selling like hotcakes Affluent buyers looking for apartments in Warsaw are willing to spend up to z∏.20 million for the hottest spot with a view of the entire city. Developers say that most prestigious housing investments in Warsaw and other big cities in Poland are enjoying stable demand.

The biggest and most luxurious apartments in the two most high-end residential skyscrapers currently being built in Warsaw sell on the spot, even though they are priced from z∏.20,000 up to z∏.43,000 per sqm.

The most upscale units are equipped with state-of-the-art control systems that allow you to open the blinds, draw a bath or boil water at the touch of a button. These apartment buildings often have swimming pools and massage parlors so their residents can enjoy true luxury without leaving their homes.

Some developers don’t even hire agencies to sell their newly built units. Such is the

case of Orco Property Group’s Z∏ota 44 high-rise located in ul. Z∏ota, between the Palace of Culture and Science and the Central Railway Station. Similarly, Cosmopolitan Twarda 2/4 is selling its most luxurious units for an average of z∏.24,000 per sqm without spending a dime on marketing. Both buildings, located in Warsaw’s Central Business district, are still under construction.

“The fact that developers of luxurious estates don’t need agents to sell their apartments speaks for itself. There are still clients for apartments worth millions,” said Bartosz Turek, a real estate analyst at Home Broker.

Angel Poland Group is expecting easily to sell its 600sqm apartment in the former chapel of the monastery that the developer is refurbishing on ul. Koletek in the center of Kraków. The penthouse, worth up to z∏.20 million and built in the shape of an equilateral octagon, is a one-of-akind property in Poland.

According to Mr Turek, upscale residential estates are insensitive to the crisis, as their

Cosmopolitan Twarda 2/4 is selling its most luxurious units for an average of z∏.24,000 per sqm “It is worth mentioning that real estate investments usually bring profit in the long run. Those who decide to build prestigious residential estates expect the Polish economy to recover in the next few years,” added Mr Krych, whose equity fund recently bought the Meble Emilia building and Hala Koszyki in Warsaw.

His firm is planning to

potential buyers usually don’t suffer income drops as large as ordinary people do.

“There will always be people who can afford luxury housing, as well as those who know how to find business opportunities in times of crisis.

It is up to the developer to target this group and present it with an interesting offer,” said Przemys∏aw Krych, managing partner at Griffin Group.

invest €200 million in Poland this year. One of its projects consists of building a residential estate in Powsin near Warsaw, 10 kilometers from the city center and in the vicinity of the Kabacki forest and the Polish Academy of Sciences’ Botanical Garden. On 37 ha of land Griffin is planning to create a truly green and luxurious estate.

Karolina Kowalska

Residential

Budimex to launch construction of WiÊlany Mokotów The development will boast apartments from 27 to 81 sqm Warsaw Stock Exchange-listed developer Budimex NieruchomoÊci is set to launch construction on its WiÊlany Mokotów multifamily housing investment this spring.

The development will be located in Warsaw’s Siekierki district, in the vicinity of the Siekierki heat and power plant, close to the Vistula River.

When fully completed, at the end of 2014, the investment will comprise four three-storey buildings with a total of 152 apartments.

The units will comprise

between one and four bedrooms and will range from 27 sqm to 81 sqm, with studio apartments between 27 and 33 sqm, two-bedroom dwellings of 38-52 sqm, and three and fourbedroom units of 50-65 sqm and 68-81 sqm respectively.

Budimex says that all of the units will have practical layouts and will have either a balcony or a terrace with a small garden.

The housing estate will also offer its residents an underground parking lot for 228 cars and 28 outside parking spaces.

WiÊlany Mokotów will be located near the intersection of ul. Bluszczaƒska and ul. Ananasowa in the previously sparsely populated Siekierki district, a

home to community gardens.

The district has become popular for developers only recently.

They tout it as a green area with access to the city center via the Trasa ¸azienkowska and Wis∏ostrada roads. The location’s disadvantage is a high level of ground water and its close proximity to the bank of Vistula River.

Despite these drawbacks, an increasing number of developers are starting construction there. On ul. Bluszczaƒska, Rzeszów-based developer Besta will complete its 100apartment Bluszczaƒska Ogrody estate at the end of 2013.

There are also the Tarasy Bartycka estate built by TGI and

COURTESY OF BUDIMEX

Almost 1.7 million sqm of warehouse space was leased in Poland last year, according to a recent report by Colliers International. Last year was better than 2011 in terms of the vacancy rate, as it dropped from 11.4% at the end of 2011 to 9.2% at the end of December 2012.

Residential

COURTESY OF TACIT

1.7 mln sqm leased in warehouses

FEBRUARY 18-24, 2013, LI 18/06

The development will be located in Warsaw’s Siekierki district APM’s Bartycka Residence and Osiedle Bluszczaƒska.

Construction company Budimex is the general contractor on the project. Part of the Budimex group, Poland’s

largest construction holding, Budimex NieruchomoÊci has delivered almost 6,000 apartments to the Polish market to date.

Karolina Kowalska

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

16

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

FEBRUARY 18-24, 2013

Hotels

Starwood wants to expand in Poland with new brands Lokale Immobilia sits down with Gonçalo Duarte Silva, newly appointed managing director of Starwood Hotels & Resorts Poland, to talk about his plans for the company’s expansion in Poland and about Hotel Bristol joining Starwood’s prestigious Luxury Collection brand

Who are Luxury Collection guests?

This is a group of clients that appreciate a luxurious environment and want a hotel that is unique in terms of history and design, and will help them unlock the Warsaw which is not presented in travel guides. Luxury Collection guests are more explorers than tourists, people

How exactly do you make the experience more personal?

Our well-trained concierges, all members of the prestigeous Les Clefs d’Or association, make sure they understand our guests’ needs, so they can suggest attractions and sights ideally suited to their tastes. That is why our concierges are chosen from among local residents who know their city very well.

If you want to cater to the needs of a true explorer, you need thorough knowledge not only of the city, but also of the guest’s predilections. If they have a taste for Coca-Cola Zero, unsalted peanuts and green apples, they will find them in their room, together with their favorite international newspaper. Being experts in indulging our guests distinguishes us from the others. It is not something I can put on

“Hotel Bristol is a witness to Warsaw’s history and one of the most beautiful buildings in the city.”

Warsaw’s best views and landmarks on our Luxury Collection website.

Gonçalo Duarte Silva says Starwood is looking to expand beyond the three Polish cities in which it currently has hotels paper, rather a philosophy that we are trying to incorporate in everything we do.

We train our staff to understand that if a customer comes to discover the city, the hotel needs to be part of that experience. For instance, we offer our guests traditional Polish tea or roast duck in our restaurant.

We even introduced a new cocktail called Nocturn Frizz, composed especially for Hotel Bristol with typically Polish ingredients, such as ˚ubrówka and dill. We preserved Bristol’s Café, one of the city’s landmarks, knowing that it would give the hotel a genuine Warsaw experience.

You said you adapted Hotel Bristol to modern standards.

In what way?

The hotel was adapted to the contemporary luxury market standards. The interiors are lav-

Sheraton. We are therefore thinking of opening our hotels in other major Polish cities, like Wroc∏aw and ¸ódê. We are also planning to introduce two new brands – Aloft and Four Points

by Sheraton – which we think would add value to those destinations’ hotel markets.

Currently, we are in talks

ishly furnished but the colors are calm and discreetly elegant.

We opened a wellness center that offers our guests an opportunity to relax. We added a wine bar overlooking the street where Varsovians and our guests can sit with a glass of wine. We make sure all the latest conveniences are at our guests’ disposal.

You said Starwood will not only advertise Hotel Bristol abroad but that you also want to become Warsaw’s ambassador.

How do you intend to do this?

In every Starwood hotel room in EMEA, SPG TV is the first TV channel. SPG TV shows our most interesting destinations and things you can do during your stay. When promoting Warsaw as a destination, we will be showcasing the city’s landmarks such as The Royal Route, ¸azienki Park and

You have recently been appointed the new managing director in Poland. What are your goals?

I would definitely like to expand our brands in Poland. Right now we are present in four cities: Warsaw, with Sheraton, Westin and the new addition – Hotel Bristol; Sopot with the Sheraton hotel and spa as well as Kraków and Poznaƒ with

with potential investors on launching those brands. I think for the Polish market Aloft could be an interesting brand, which is targeted at younger travelers and businesspeople. It is more design-oriented and we call it a “select-service brand.”

It is not a premium brand, like Luxury Collection or Sheraton, but gives our guest plenty of options to choose from. It has iPad docking stations in rooms and public areas designed to support the social aspect of travel. ●

COURTESY OF STARWOOD HOTELS

Does that mean the company decided to position Warsaw as a luxury destination?

With the country’s economic growth and with increasing foreign capital involvement, the city attracts an increasing number of luxury clients. While making our decision regarding Hotel Bristol, we talked to the experts in the local market who claim Warsaw has the potential to attract a substantial number of new, affluent travelers and businesspeople.

who still want to travel in a traditional manner, taking time to get to know the city with its unique history and atmosphere.

They want the building they are staying in to give them insight into the local traditions and way of life. Hotel Bristol, with its vibrant history as a host to the most important cultural events of the pre-war era and a witness to many historical events such as the Warsaw Uprising, is an ideal place for them.

They find the modern way of sightseeing, where you are supposed to get to know a city in two days, too superficial. The Luxury Collection makes the whole experience more personal.

COURTESY OF STARWOOD HOTELS

Karolina Kowalska: After its z∏.50 million refurbishing, Hotel Bristol Warsaw joined Starwood’s most prestigious brand, the Luxury Collection.

Why was this decision made?

The Luxury Collection brand consists of just 80 five-star hotels around the globe. Each of them is special in terms of its architectural design, its history and historical significance. It is more of an art collection than a brand, as it comprises a variety of unique decorations and styles. Hotel Bristol, a witness to Warsaw’s history and one of the most beautiful buildings in the city, seemed a natural choice.

Wilanów Palace, but also its cultural offers, as we believe we have plenty of activities to attract global explorers. Our PR department works very hard to publicize both the hotel and the city and to make sure our publicity reaches all our existing and potential clients.

For instance we will put up

Hotel Bristol’s newly refurbished lobby

LOKALE IMMOBILIA – REAL ESTATE

FEBRUARY 18-24, 2013

www.wbj.pl

17

Retail development

The shopping mall is scheduled to open in October 2014 Libra Project has recently launched construction on its long-awaited Galeria Warmiƒska shopping center in Olsztyn. The investment, located at the intersection of ul. Sikorskiego and ul.

Tuwima, next to electronics retailer Media Markt, DIY chain Praktiker and supermarket chain Real, will cost €100 million.

The scheme will comprise 116,000 sqm of space, 147 shops, service outlets, cafes and restaurants, as well as a parking lot for 1,200 cars. It will be one of the largest shopping malls in northeastern Poland and the biggest one in the city, twice the size of Olsztyn’s Alfa shopping center, which is currently the

largest.

The investment has already been 59 percent leased out, with Zara and H&M among its tenants. It will also boast a fitness club, an amphitheater, a sports field and, in winter, an iceskating rink.

The building’s design, with its facade covered with a spider web-like construction, was done by APA Kury∏owicz & Associates architects, who found their inspiration in the Airspace Tokyo building. The idea for the unconventional interior design comes from Bose International.

Olsztyn City Hall issued a construction permit on January 4 and the investor began construction two weeks later.

Construction work has continued despite harsh weather conditions.

The mall is scheduled to

open in October 2014, five years after the project was made public. The delay was due to legal issues with the 50,000-sqm plot that Libra Project bought from the University of Warmia and Mazury.

First the construction was up in the air because the investor could not get a permit to build an access road.

Olsztyn City Hall didn’t consent to another intersection being built in the area and the neighboring supermarket didn’t want to share its access road with Galeria Warmiƒska. When the city finally approved the construction of an access road, the investor had to wait for the local zoning plan and the land had to be examined by archeologists.

The investor behind the scheme is businessman Dariusz Mi∏ek, president of

COURTESY OF MGC INWEST

Galeria Warmiƒska construction launched

The mall will be one of the largest in northeastern Poland footwear retailer NG2. Mr Mi∏ek previously invested in the 70,000 sqm Cuprum

Arena retail center in Lublin and is also involved in the Korona Kielce shopping cen-

ter scheme in Kielce and Galeria Goplana in Leszno.

Karolina Kowalska

Hospitality

A four-star hotel in a 19th-century tenement house will open next year in the heart of Bydgoszcz Investor Cube has launched construction of its four-star Sepia hotel in the center of Bydgoszcz in northern Poland. The hospitality facility, comprising 160 beds in 90 rooms, is scheduled to open in spring 2014.

The hotel will be located on ul.

Focha, in the vicinity of Opera Nova. The new building will be adjacent to an historic tenement house erected in 1884 that previously hosted the news office of the

Ilustrowany Kurier Polski daily newspaper. The new scheme will be five storeys tall – the same as the historic building.

On the roof, there will be a terrace with a view of the city’s old town. The ground floor will host the reception desk, a restaurant, a bar and five suites. The hotel’s kitchen and a fitness club will be located in the basement. There will also be VIP lounges, conference rooms and a business center in the building.

Sepia will be one of the few hospitality facilities in the Bydgoszcz Old Town. According to analyses commissioned by the investor, there is still demand for hotels in

the city. Bydgoszcz continues to host an increasing number of fairs and conferences every year and there are not enough beds for businesspeople, let alone tourists, surveys revealed.

Cube therefore has little reason to fear competition, even with a 117-room Campanile hotel about to open at the intersection of ul.

Jagielloƒska and ul. Chopina, in the center of Bydgoszcz.

The investment will cost z∏.29.1 million. Cube has received almost z∏.12 million in EU subsidies and will finance the rest of the investment with a bank loan.

Karolina Kowalska

COURTESY OF HOTEL SEPIA

Sepia hotel in Bydgoszcz to open in 2014

Sepia hotel will be located in the Bydgoszcz Old Town

18

THE LIST

www.wbj.pl

FEBRUARY 18-24, 2013

Construction & Real Estate

Commercial Real Estate Developers - Retail

Rank

Ranked by retail investments completed in 2010

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

Gross building area (GBA) of retail investments completed (sqm)

Gross leasable area (GLA) of retail investments completed (sqm)

Specialization

www.bookoflists.pl

Key current investments: name Largest investments recently Total number of (address; GBA; GLA; completion completed: name (address; GBA; employees / year) GLA; completion year) Year founded in Poland

Top local executive / Title

1st half of 2011 / 2010 / 2009 / 2008 / Overall

1

Inter IKEA Centre Polska SA Pl. Szwedzki 3, Janki, 05-090 Raszyn 22 711-2300/ 22 711-2266 inter@ikea.com www.iicg.pl

WND 120,000 WND WND WND

WND 103,000 WND WND

Shopping malls

2

Plaza Centers Poland Sp. z o.o. ul. TaÊmowa 7, 02-677 Warsaw 22 231-9900/22 231-9901 headoffice@plazacenters.pl www.plazacenters.pl

100,000 95,000 WND WND WND

40,000 37,000 WND WND

3

Liebrecht & wooD Polska Sp. z o.o.

Al. Jerozolimskie 212A, 02-486 Warsaw 22 571-4444/22 571-4443 info@liebrecht-wood.com www.liebrecht-wood.pl

WND 79,177 120,490 136,734 WND

4

Polimeni International LLC ul. W∏adys∏awa IV 43, 81-395 Gdynia 58 669-6000/58 669-6001 sekretariat@polimeni.pl www.polimeni.pl

5

S+B Plan & Bau Warschau Sp. z o.o. ul. Mokotowska 1, 00-640 Warsaw 609-307-099/22 375-3010 izabella.kieler@sb-gruppe.at www.sb-gruppe.at

Shopping mall (Lublin; WND; 80,000; 2014); Park Handlowy Bielany (Wroc∏aw; WND; 60,000; 2014)

Port ¸ódê (¸ódê; 120,000; 103,000; 2010)

WND 2001

Carl Tomas Rask

Shopping and entertainment centers

Suwa∏ki Plaza (Suwa∏ki; 55,000; 20,000; Toruƒ Plaza (Toruƒ; 100,000; 40,000; 2011) 2010); Zgorzelec Plaza (Zgorzelec; 40,000; 17,000; 2010)

20 1998

Eli Mazor

WND 16,361 16,906 17,292

Office buildings; outlet centers

Fashion House Gdaƒsk (Gdaƒsk; 79,177; Plac Unii (Warsaw; 15,500; 15,181; 2013); 16,361; 2010); Fashion House Sosnowiec Morski Park Handlowy (Gdaƒsk; 160,247; (Sosnowiec; 120,490; 16,906; 2009); 58,254; 2012) Fashion House Warszawa (Warsaw; 13,6734; 17,292; 2008)

35 1994

Marc Lebbe; Patrick Van Den Bossche

16,843 40,801 33,099 149,587

WND WND WND WND

Commercial buildings

WND

30 1999

Karol Kalicki

WND 768 WND WND 768

WND 721 WND WND

Zebra Tower (Warsaw; 17,800; 16,160; 2010)

WND 2007

Edmund Volker

AIG/Lincoln Polska Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw NR 22 564-5000/22 564-5085 office.warsaw@aiglincoln.com.pl www.aiglincoln.com.pl

116,000 WND WND WND WND

42,000 WND WND WND

Office buildings; shopping malls; warehouses and logistics parks; residential complexes

WND

Aquapark (Radom; 5,850; WND; 2010)

WND 1997

Brian Patterson

Apsys Polska Sp. z o.o.

Al. Jana Paw∏a II 27, 00-867 Warsaw NR 22 701-9200/22 701-9201 office@apsysgroup.pl www.apsysgroup.pl

WND WND WND WND 270,000

WND WND WND WND

Shopping malls

WND

WND

176 1997

Fabrice Bansay

Caelum Development - grupa kapita∏owa ul. Prosta 51, 00-838 Warsaw NR 22 586-9790/22 586-9799 info@cealumdevelopment.eu www.caelumdevelopment.eu

WND WND 8,100 68,600 318,575

WND WND 5,300 33,200

Shopping malls

NoVa Park (Gorzów Wielkopolski; 75,000; 34,334; 2012); Parklake Plaza (Bucharest, Romania; 180,000; 67,000; 2013)

Galeria Wis∏a (P∏ock; 22,600; 55,600; 2009); Galeria M∏yƒska (Racibórz; 4,200; 2,800; 2008); Galeria Askana (Gorzów Wielkopolski; 18,000; 55,000; 2007)

95 2002

Niall O'Higgins

WND WND WND WND WND

5,407 1,018 2,907 968

Retail buildings

Street Mall Vis a Vis Radom (Radom; 3,951; 3,663; 2010); Cristal (Gdaƒsk; Street Mall Vis a Vis ¸ódê (¸ódê; WND; WND; 1,744; 2010); Olsztyn Business 7,078; 2013); Royal Wilanów (Warsaw; Polonia (Olsztyn; WND; 1,126; 2009); WND; 7,000; 2014); Art Norblin (Warsaw; Toruƒ Szeroka (Toruƒ; WND; 1,708; 2009); WND; 21,000; 2015) Tczew Dàbrowskiego (Tczew; WND; 421; 2007)

42 2003

Jan Motz

Centrum Development & Investment Polska Sp. z o.o. ul. Bonifraterska 17, 00-203 Warsaw NR 22 351-0100/22 351-0101 cdi@centrumdi.com www.centrumdi.com

WND WND 100,000 WND WND

WND WND 41,000 WND

WND

WND

DH Renoma (Wroc∏aw; 99,500; 41,000; 2009)

WND 2002

Joanna Richter

DEKADA REALTY Sp. z o.o.

AL.. Niepodleg∏oÊci 124, 02-577 Warsaw NR 22 851-3465/22 851-0121 biuro@dekadarealty.pl www.dekadarealty.pl

10,200 WND 11,300 WND 21,500

6,900 WND 6,600 WND

Shopping malls; convenience stores

Dekada Sieradz (Sieradz; 22,500; 10,000; 2011); Dekada ˚yrardów (˚yrardów; 5,100; 3,800; 2012); Dekada Olsztyn (Olsztyn; 4,100; 3,700; 2012)

Galeria Jeziorak (I∏awa; 11,300; 6,600; 2009)

12 2007

Aleksander Walczak

Capital Park SA ul. Marynarska 11, 02-674 Warsaw NR 22 318-8888/22 318-8889 biuro@capitalpark.pl www.capitalpark.pl

WND

Wspólna Project (Warsaw; WND; WND; Office, retail, residential buildings; hotels WND); Królewska Project (Warsaw; WND; WND; WND)

Managing Director

Managing Directors

Vice President

Managing Director

President

Managing Director

President

President

President

THE LIST

Rank

FEBRUARY 18-24, 2013

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

Gross building area (GBA) of retail investments completed (sqm)

Gross leasable area (GLA) of retail investments completed (sqm)

Specialization

Retail, residential, office buildings

www.wbj.pl

Key current investments: name Largest investments recently Total number of (address; GBA; GLA; completion completed: name (address; GBA; employees / year) GLA; completion year) Year founded in Poland

19

Top local executive / Title

1st half of 2011 / 2010 / 2009 / 2008 / Overall

ECC Real Estate Sp. z o.o. ul. Ostrobramska 75C, 04-175 Warsaw NR 22 611-3700/22 611-3753 info.europe.ce@eccrealestate.com www.eccrealestate.com

WND WND WND WND 108,600

WND WND WND WND

ECE Projektmanagement Polska Sp. z o.o. ul. Fabryczna 5A, 00-446 Warsaw NR 22 310-6000/22 310-6002 info@ece.de www.ece.pl

WND WND WND 20,000 460,000

WND WND WND 5,000

Echo Investment SA Al. SolidarnoÊci 36, 25-323 Kielce NR 41 333-3333/41 333-2333 office@echo.com.pl www.echo.com.pl

WND WND WND 6,700 48,4000

WND WND WND 6,700

Globe Trade Centre SA ul. Wo∏oska 5, 02-675 Warsaw NR 22 606-0700/22 606-0410 gtc@gtc.com.pl www.gtc.com.pl

WND WND 130,000 WND 392,500

WND WND 49,000 WND

Grupa Inwestycyjna Hossa SA ul. W∏adys∏awa IV 43, 81-395 Gdynia NR 58 620-7033/58 620-7669 info@hossa.gda.pl www.hossa.gda.pl

WND WND WND 9,000 47,800

WND WND WND 9,000

Residential, commercial buildings

Helical Poland Sp. z o.o. ul. Wspólna 35/9, 00-519 Warsaw NR 22 556-5400/22 826-5615 abn@helicalpoland.pl www.helicalpoland.pl

WND WND WND WND 50,000

40,000 WND WND 10,000

Retail parks

Mayland Real Estate Sp. z o.o. ul. Pu∏awska 427, 02-801 Warsaw NR 22 546-9800/22 546-9898 contact@mayland.pl www.mayland.pl

WND WND WND WND WND

WND WND WND 130,000

Shopping malls

METRO Properties Sp. z o.o.

Al. Krakowska 61, 02-183 Warsaw NR 22 500-0000/22 500-0113 info@metro-properties.pl www.metro-properties.pl

40,000 WND WND WND 860,000

29,000 WND WND WND

Retail buildings

NAP Invest Group ul. Nowogrodzka 21, 00-511 Warsaw NR 22 262-2000/22 262-2001 info@napinvest.com.pl www.napinvest.com.pl

3,700 WND 17,000 2,000 WND

3,500 WND 13,000 WND

Neinver Polska Sp z o.o. ul. ˚elazna 28/30, 00-832 Warsaw NR 22 822-1200/22 822-1222 komunikacja@neinver.com www.neinver.com

WND WND WND WND 114,000

NORDIC DEVELOPMENT SA ul. Emilii Plater 53, 00-113 Warsaw NR 22 540-7160/22 540-7161 info@nordicdevelopment.pl www.nordicdevelopment.pl

Sjaelso Poland Sp. z o.o.

Al. Rzeczpospolitej 18/70, 02-972 Warsaw NR 22 419-2000/22 419-2010 sjaelso@sjaelso.pl www.sjaelso.pl

TK Development SA ul. Mszczonowska 2, 02-337 Warsaw NR 22 572-2910/22 572-2911 tkd-warsaw@tk.dk www.tk-development.com

Promenada Resort Mall (Chiang Mai, Thailand; 90,000; 50,500; 2012); Podkowa Pu∏awska 111A (Warsaw; 19,700; WND; housing development (Poznaƒ; 33,000; 2010) WND; WND); Milano (Warsaw; 2,100; 1,500; WND)

6 1989

Adrian Heymans

Shopping malls and multipurpose facilities

Galeria Kaskada (Szczecin; 120,000; 42,000; 2011)

Galeria ¸ódzka (¸ódê; 110,000; 45,000; 2008); Galeria Ba∏tycka (Gdaƒsk; 110,000; 39,500; 2007); Galeria Krakowska (Kraków; 129,000; 60,000; 2006); Galeria Dominikaƒska (Wroc∏aw; 60,000; 32,000; 2001)

WND 1997

Rudiger Dany

Shopping malls; hotels; residential, office buildings

Outlet Park Szczecin (Szczecin; 30,200; 24,000; 2012); Galeria Amber (Kalisz; 88,000; 33,500; 2013); Galeria Olimpia (Be∏chatów; 48,100; 32,200; 2012)

Pasa˝ Grunwaldzki (Wroc∏aw; 120,000; 50,000; 2007); CHR Galaxy (Szczecin; 94,000; 42,000; 2003); Galeria Echo (Kielce; 58,000; 26,000; 2002)

325 1994

Piotr Gromniak

Galeria Mokotów (Warsaw; 150,000; WND; 60,000; 62,500; 2000); Galeria Kazimierz (Kraków; Office, residential buildings; shopping malls Galeria Wilanów (Warsaw; 2013) 112,500; 38,200; 2005); Galeria Jurajska (Cz´stochowa; 130,000; 49,000; 2009)

163 1994

Piotr Kroenke

Omega (Gdaƒsk; 5,820; 4,796; 2012); Gama (Gdaƒsk; 6,170; 5,104; 2012)

Garnizon.biz (Gdaƒsk; 10,000; 9,000; 2008); CH Madison (Gdaƒsk; 22,300; 21,100; 2003); Centrum Biurowe HOSSA (Gdynia; 9,300; 6,900; WND)

161 1989

Mariusz Gawron

Europa Centralna (Gliwice; 270,000; 67,000; 2012)

Park Handlowy M∏yn (Wroc∏aw; WND; 10,000; 2008)

17 2004

Jonathan Tinker; Peter Evans

CH Karolinka (Opole; WND; 70,000; 2008); CH Wzgórze (Gdynia; WND; 70,000; Jantar (S∏upsk; WND; 22,000; 2008); 2013); CH Jantar (S∏upsk; WND; 46,000; CH CH Pogoria (Dàbrowa Górnicza; WND; 2012) 38,000; 2008)

WND 2006

Yann Guen; Maciej Kie∏bicki

M1 Cz´stochowa (Cz´stochowa; 9,700; 5,300; 2013)

M1 Zabrze (Zabrze; 12,600; 8,000; 2010); M1 Kraków (Kraków; 8,100; 6,900; 2010); Makro Kraków (Kraków; 11,000; 8,500; 2010)

316 1996

Andreas Thamm; Renata Kinde-Czy˝

Shopping malls; retail parks; residential buildings

Centrum Zakupów Zàbki (Zàbki; 3,100; 2,900; 2011); 2 residential projects (Lublin; 19,000; WND; WND); residential project (Warsaw; 9,000; WND; WND)

Centrum Zakupów Zgierz (Zgierz; 3,700; 3,500; 2010); Galeria Rembieliƒska (Warsaw; 17,000; 13,000; 2008)

WND 2007

Bogdan ˚o∏nierzak

WND WND WND WND

FACTORY outlet centers; FUTURA retail parks; shopping malls; office buildings

Galeria Katowicka (Katowice; WND; Galeria Malta (Poznaƒ; WND; 54,000; 46,000; 2013); FACTORY Warszawa FUTURA Park Wroc∏aw (Wroc∏aw; Annopol (Warsaw; WND; 19,700; 2012); 2009); WND; 31,800; 2006); FACTORY Poznaƒ FUTURA Park Kraków (Modlniczka; WND; (Luboƒ; WND; 15,200; 2007) 44,000; 2011)

80 2000

Barbara Topolska

WND WND WND WND WND

WND WND WND WND

Retail, residential buildings

Wyspa M∏yƒska (Bydgoszcz; 29,000; WND; WND); Marina (Bydgoszcz; WND; WND; 2013); Lake Residence (Osielsko; WND; WND; 2013)

Nordic Residence (Bydgoszcz; 34,000; WND; 2010); Nordic Tower (Bydgoszcz; WND; WND; 2009)

20 2007

Jon Therkildsen

WND WND WND WND WND

WND WND WND WND

WND

WND

WND

WND 2007

John Kristensen

WND WND 76,500 WND 480,000

WND WND 33,750 WND

Retail and entertainment buildings

TIVOLI Commercial (Warsaw; 6,800; 5,600; 2011); Galeria Sandecja (Nowy Sàcz; WND; 4,700; 2012)

Galeria Tarnovia (Tarnów; 36,500; 16,550; 2009); Galeria Sandecja (Nowy Sàcz; 40,000; 17,200; 2009)

30 1994

Zygmunt Chyla

Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the list was conducted in October 2011. Number of employees is as of September 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

President

Managing Director

President

General Director

President

Board Members

President; Board Member

President

General Director

President

President

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

FEBRUARY 18-24, 2013

Stocks report

world stock indices DJIA

NASDAQ

13,973.39 (Feb 14 close)

S&P500

3,198.66 (Feb 14 close)

0.21% (for the week)

FTSE100

1,521.38 (Feb 14 close)

1.06% (for the week)

DAX

6,327.40 (Feb 14 close)

0.79% (for the week)

1.59% (for the week)

WIG20 pulled down by TP

NIKKEI 7,631.19 (Feb 14 close)

11,307.28 (Feb 14 close)

0.53% (for the week)

-0.44% (for the week)

CHANGE: 4.18% (year to Feb 14)

CHANGE: 2.78% (year to Feb 14)

CHANGE: 4.03% (year to Feb 14)

CHANGE: 4.98% (year to Feb 14)

CHANGE: -1.90% (year to Feb 14)

CHANGE: 5.79% (year to Feb 14)

52-week high: 14,038.97

52-week high: 3,205.52

52-week high: 1,524.69

52-week high: 6,354.50

52-week high: 7,871.79

52-week high: 11,498.42

52-week low: 12,035.09

52-week low: 2,726.68

52-week low: 1,266.74

52-week low: 5,229.80

52-week low: 5,914.43

52-week low: 8,238.96

Andrew Nawrocki WBJ market analyst It was a bearish week, with Poland’s blue chip index pulled down by a horrible week for Telekomunikacja Polska (TP) shareholders.

Monday started off slowly, with little movement amongst Polish indices for most of the day, with investors turning to Athens, Madrid and Istanbul for action. The mWIG40 saw the biggest rises, up over half a percent, while the WIG20 and WIG saw a modest 0.10 percent gain.

Stocks suffered on Tuesday, hit by bad news from TP after Poland’s largest telecom reported dismal Q4 2012 results. TP shares plummeted 27.9 percent, dragging the WIG20 down by 1.1 percent, and the WIG by 0.8 percent.

Polish stocks continued

Major indices WIG

46,211.54 (February 14 close)

WIG20

2,456.36 (February 14 close)

14.02

13.02

12.02

11.02

08.02

07.02

06.02

05.02

04.02

01.02

31.01

30.01

29.01

14.02

13.02

12.02

11.02

08.02

07.02

06.02

05.02

04.02

2,400

01.02

46,000

31.01

2,440

30.01

46,400

29.01

2,480

28.01

46,800

25.01

2,520

24.01

47,200

23.01

2,560

22.01

47,600

21.01

2,600

18.01

48,000

28.01

52-week low: 2,035.80

25.01

Change year to February 14: -6.47%

24.01

52-week low: 36,653.28

23.01

52-week high: 2,628.36

Change year to February 14: -3.94%

22.01

Change for the week: -0.45%

21.01

52-week high: 48,222.72

18.01

Change for the week: -0.25%

Top 5 ADVADIS PROCHNIK MEGARON INTAKUS ZAMET

Closing 0.04 0.33 27.50 0.45 3.12

% change (week) 52-week high 33.33 0.11 32.00 0.35 28.81 38.19 21.62 0.86 20.00 3.24

52-week low 0.02 0.16 19.32 0.12 1.18

Top 5 SYNTHOS PKNORLEN TVN TAURONPE PGNIG

Closing 5.48 50.70 9.51 4.56 5.67

% change (week) 6.82 5.96 3.82 2.93 2.90

52-week high 6.40 53.70 11.69 5.25 5.86

52-week low 4.64 31.44 5.90 3.84 3.61

Bottom 5 HBPOLSKA ABMSOLID TPSA IGROUP KCI

Closing 0.01 0.14 7.00 0.12 0.45

% change (week) -50.00 -41.67 -39.24 -33.33 -26.23

52-week low 0.01 0.11 6.90 0.12 0.41

Bottom 5 TPSA GTC BORYSZEW HANDLOWY BOGDANKA

Closing 7.00 7.51 0.47 90.40 133.60

% change (week) -39.24 -11.23 -6.00 -1.95 -1.04

52-week high 17.34 10.25 0.86 102.10 143.00

52-week low 6.90 5.13 0.42 64.20 114.00

52-week high 1.47 4.75 17.34 0.70 0.90

Currency report

Z∏oty still stable

Other indices sWIG80

11,017.48 (February 14 close)

WIG-Banki

6,469.15 (February 14 close)

14.02

13.02

12.02

11.02

08.02

07.02

06.02

05.02

04.02

01.02

31.01

30.01

29.01

14.02

13.02

12.02

11.02

08.02

07.02

06.02

05.02

04.02

01.02

6,300

31.01

32.0

30.01

6,380 29.01

32.4

28.01

6,460

25.01

32.8

24.01

6,540

23.01

33.2

22.01

6,620

21.01

33.6

18.01

6,700

28.01

52-week low: 5,163.30

25.01

Change year to February 14: -3.78%

24.01

52-week low: 32.13

23.01

52-week high: 6,723.16

Change year to February 14: -1.29%

22.01

Change for the week: 0.37%

21.01

52-week high: 43.88

18.01

Change for the week: -1.68%

34.0

Adam Narczewski X-Trade Brokers DM SA

14.02

13.02

12.02

11.02

08.02

07.02

06.02

05.02

04.02

01.02

52-week low: 8,984.43

29.01

28.01

25.01

14.02

13.02

12.02

11.02

08.02

07.02

06.02

32.79 (February 14 close)

52-week high: 11,245.80

SOURCE: WSE

NewConnect

05.02

04.02

10,900

01.02

2,500

31.01

10,980

30.01

2,540

29.01

11,060

28.01

2,580

25.01

11,140

24.01

2,620

23.01

11,220

22.01

2,660

21.01

11,300

18.01

2,700

24.01

Change year to February 14: 4.62%

23.01

52-week low: 2,147.52

22.01

Change year to February 14: 0.37%

21.01

Change for the week: 0.62%

18.01

52-week high: 2,646.20

31.01

2,578.13 (February 14 close)

30.01

mWIG40 Change for the week: 0.01%

to underperform the rest of Europe on Wednesday, as shares of TP continued their slide, closing nearly 8 percent lower for the day. The WIG and WIG20 closed nearly flat, while the DAX (up 0.67 percent), CAC40 (up 0.32 percent), and the FTSE (up 0.33 percent) closed much higher.

Shares of TP saw further falls, eventually closing nearly 10 percent lower, and bringing shares of the troubled telecom giant nearly 40 percent lower than they were on Monday, February 11. The WIG20 shed 0.6 percent, while the WIG lost nearly half a percent.

Friday finally brought an upward correction, with the WIG and WIG20 closing up 0.34 percent and 0.46 percent respectively. ●

Talk of an ongoing currency war won’t die down. World leaders are expected to discuss the issue at the G20 meeting. Any statements or conclusions will be closely followed as they can give major impulses to various currencies.

Recently, the Bank of Japan has been under pressure for allowing the yen to depreciate (by announcing an unlimited asset buyback starting in 2014). The major winner of the Japanese currency depreciation is George Soros, whose fund made around $1 billion while betting on a weaker yen.

The EUR/USD continues its downward corrective movement, which began at the beginning of the month.

After catching a breather and rebounding to $1.35, it continued the decline, reach-

ing levels just above $1.33.

The next crucial support level for the EUR/USD is at $1.3270 and if it is broken, lower levels will be targeted.

On the local market the main event was an appeals court’s decision to uphold a verdict of not guilty in a libel case against Monetary Policy Council member Jan Winiecki. Mr Winiecki has hawkish views, and had he been forced to resign, it is very probable he would have been replaced by a member with more dovish views, which in turn could have caused a further depreciation of the z∏oty.

The EUR/PLN bounced from z∏.4.14, the lower bound of the range it has been trading in for weeks now, and reached z∏.4.18.

The USD/PLN climbed to z∏.3.14 while the CHF/PLN to z∏.3.40. ●

currency rates 3.4008 15.02

SOURCE: NBP

3.3357 14.02

3.3248 13.02

3.3128 12.02

11.02

3.3504 08.02

0.1036

0.1041 15.02

3.3

3.3259

PLN-100JPY

3.4

14.02

0.1033

0.1033 12.02

11.02

08.02

0.102

13.02

0.1030

3.4061 15.02

3.3853

0.1029

PLN-RUB

0.105

14.02

3.3788 13.02

3.3909 12.02

11.02

3.3884 08.02

4.8399

4.8620 15.02

3.3

3.3823

PLN-CHF

3.5

14.02

4.8529 13.02

4.8545 12.02

4.8728

4.8891 4.8

08.02

3.1398 15.02

3.1209 14.02

3.1012 13.02

3.1159 12.02

3.0991 11.02

3.1056 08.02

4.1715

4.1852 15.02

3.0

PLN-GBP

4.9

11.02

PLN-USD

3.2

14.02

4.1781 13.02

4.1686 12.02

11.02

4.1670 08.02

4.1

4.1519

PLN-EUR

4.2

SPORTS

FEBRUARY 18-24, 2013

www.wbj.pl

21

Basketball

Gortat ranked 8th-best European player

Robert Lewandowski (foreground, with ball)

Soccer

Lewandowski scores in Champions League draw The Polish striker is currently serving a three-match Bundesliga ban Poland’s Robert Lewandowski put aside his recent Bundesliga problems to help earn Borussia Dortmund a 2-2 draw away to Shakhtar Donetsk in the Champions League second round last week.

Mr Lewandowski had been sent off four days earlier after kicking Norwegian international Per Skjelbred during Dortmund’s game with Hamburger SV. The Pole opened the scoring

before his side eventually went down 4-1. He has since received a three-match ban, which means he will miss his team’s upcoming games with Mönchengladbach and Hannover 96.

But the turmoil surrounding his suspension seemed to have no effect on the Warsaw-born footballer as he maintained his goal-scoring form in Ukraine, capitalizing on a defensive mixup to score his 21st goal of the season.

Dortmund had gone behind on Darijo Srna’s stunning rightfoot free kick in the 31st minute, but just 10 minutes

later Mr Lewandowski was on hand to fire in the equalizer from inside the penalty area.

The Polish striker controlled a low cross from the right before swinging and missing at the ball.

His air shot fooled two defenders, allowing him time to compose himself before side footing the ball into the bottom lefthand corner.

Next up for Mr Lewandowski is the Bundesliga’s runaway leader Bayern Munich, who Dortmund will face in the quarterfinals of the German DFB Cup on February 27.

David Ingham

Polish basketball star Marcin Gortat has been named as the eighth-best European player in a poll by FIBA-Europe, the governing body for European basketball. The Phoenix Suns center, who is known as “the Polish Hammer” by NBA fans, has been in good form in recent weeks after putting speculation linking him to a move away from the Suns behind him.

Now in his seventh season in the NBA, after four years with the Orlando Magic, he is one of the most recognizable faces in Polish sports. But this year has been a bad one for his team, as they are currently in last place in the Western Conference’s Pacific Division.

In the FIBA European player rankings Mr Gortat received 10,939 fan votes and also got 35 votes from experts polled for the ranking. Russia’s Andrei Kirilenko was ranked first, with 356 votes from experts, despite receiving fewer fan votes than Mr Gortat. The Minnesota Tim-

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SHUTTERSTOCK

“The Polish Hammer” has been playing well in recent weeks

Marcin Gortat (right) berwolves forward played a starring role in the London 2012 Olympics, helping Russia gain their first Olympic medal (bronze) since the breakup of the Soviet Union.

“Andrei is a deserving winner of this award. It is a mark of the man that he has been able to retain his high intensity throughout the year in a number of competitions,”

said FIBA Europe president Olafur Rafnsson, on the organization’s official website.

In another recent ranking, FIBA placed the Polish national team the 17th best in Europe. The ranking comes ahead of the FIBA EuroBasket 2013 tournament, which takes place in Slovenia.

David Ingham

22

LIFESTYLE

www.wbj.pl

FEBRUARY 18-24, 2013

Concert

Exhibition

LA Woman

Front page news

Beth Hart February 25 Klub Hybrydy, ul. Z∏ota 7/9 Warsaw American singer-songwriter Beth Hart first found fame when her 1999 single “LA Song (Out of This Town)” was featured on the hit TV show “Beverly Hills 90210.” The track, which was on her second studio album “Screamin’ For My Supper” was a Billboard Hot 100 hit and helped propel her into the mainstream after the relatively minor success of

her first releases. But this was before her career faltered due to drug and alcohol problems, and it was four more years before she re-emerged with a new record “Leave the Light On.” Known for her eclectic sound, which includes blues, rock, jazz and soul, Hart has a powerful range, which is full of emotion, ensuring the audience really feels she means what she sings. This was especially apparent during her 2012 performance of the Etta James classic “I’d Rather Go Blind”

when she appeared alongside guitarist Jeff Beck at a tribute to blues legend Buddy Guy. She’s worked with numerous other rock titans, including Deep Purple and Slash.

This current mammoth European tour sees her performing with recent collaborator, American blues rock guitarist Joe Bonamassa, with whom she co-wrote her 2011 album “Don’t Explain.”

David Ingham

For more information, log on to hybrydy.com.pl

This fascinating new exhibition presents photographs that were taken in the 1950s and 1960s for the weekly Polish magazine Âwiat. In its heyday the magazine had a weekly circulation of 300,000 copies and was many Poles’ main means of accessing what was happening in the wider world away from the Iron Curtain. The magazine’s philosophy was to present the view of the photographers, to be dynamic, tell stories, grasp paradoxes and surprise with humor.

Along with presenting front covers from the magazine, the exhibition also features photographs that never made it to print, articles from Âwiat and information on the men behind the pictures.

“The heroes of the exhibition are four outstanding photographers with fascinating biographies, four individualists whose common achievement was their ability to build a great team remembered to this day as a singular phenomenon in the history of the Polish illustrated press,” the exhi-

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Beth Hart

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Cztery razy ÂWIAT February 22-May 12 Muzeum Narodowe Aleje Jerozolimskie 3 Warsaw

A 1955 front cover of the weekly Âwiat bition’s curators said in a statement.

The exhibition, which is ongoing until May 12, is the first time that such a collection of photographs from Âwiat’s past has been assembled in

one place and is sure to delight and enthral those with an interest in history and classic photography.

David Ingham

For more information, log on to mnw.art.pl

LAST WORD

FEBRUARY 18-24, 2013

www.wbj.pl

23

Tech Eye

The Satechi Smart LED Desk Lamp

One of Techeye’s cats – the one who only responds to the name “Optipuss Prime” – is suffering from depression.

He’s been moping for weeks, sleeping longer and peeing on things that really shouldn’t be peed on. Like electrical sockets.

We’ve tried to cheer him up, but to no avail. Catnip does nothing. Pictures of lolcats in lingerie have no effect. We even tried grooming him, but Optipuss was not impressed. Even the giant hairball we coughed up earned but a yawn.

As we usually do when facing reallife problems, Techeye looked on the internet for helpful gadgets. We found some, too.

One promising item is the Satechi Smart LED Desk Lamp (Satechi.net). You know, in case Optipuss is suffering from seasonal affective disorder.

Unlike most of its kin, the Satechi Smart LED Desk Lamp (henceforth known as “the Lamp”) has a few features beyond its on/off switch. It boasts four lighting modes: reading, study, relaxation and bedtime modes, the latter of which “encourages deep sleep with a comfortable soft light.”

There’s also a rear USB port for charging mobile devices, a one-touch control scheme and a one-hour autooff timer. The green-minded will appreciate that the Lamp consumes

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just one-eighth the power of a regular incandescent lamp and has a lifespan of over 40,000 hours. Cost: $99.99.

Now, our cat won’t care a whisker about any of that, but perhaps the extra light will do him some good.

That USB port may also come in The Crazyflie handy for charging the new gaming tablet we’re getting him.

You read that right. We’re getting do with Wikipedia. our faithful quadruped a gaming The Wikipad packs 16 GB of tablet. Cats enjoy digital entertain- memory (with a micro-SD slot for up ment too, as evidenced by You vs. Cat to 32 GB additional memory), a Tegra (available for iOS and Android), a 3 quad-core processor, a twogame published by chow-maker megapixel front-facing camera and a Friskies. The game is simple – human 1,280 x 800 resolution display. The flicks things toward cat; cat attacks screen doesn’t stand up well against them. competiBut whattors in ever, the terms of point is to resolumake our cat tion, but to feel special. there’s a None of the “scratchother cats in the resistant neighborhood military-grade have their own tablet, screen” which The Wikipad ergo it is a good way to suits our purrpose nicely. make him feel special.

Unfortunately, the Wikipad isn’t Enter the Wikipad (Wikipad.com), available right meow. The sevena seven-inch, Android-based tablet inch version launches this spring at a that comes with a “unique, attachable price of $249; a 10-inch variant is game controller” and has nothing to expected before Christmas. You vs.

COURTE SY OF W IKIPAD

COURTESY OF SATECHI

Living on the brink of catastrophe Cat should run nicely on either device.

The last gadget we’re getting our beloved Optipuss is the Crazyflie from Swedish start-up Bitcraze (Bitcraze.se).

This bare-bones quadcopter resembles the lovechild of the Raspberry Pi “cheaputer” and the Parrot AR Drone Quadricopter. It fits in palm of your hand, has an average flight time of seven minutes (with a 20-minute charge time) and flits about like a mosquito on steroids.

A word of caution – the Crazyflie is sold in kits that require assembly, so you need to know your way around a soldering gun. There are two kits, costing $149 and $179 (the latter includes a 3-axis magnetometer and a highprecision altimeter), and you’ll need a PC to run the flight program as well as a PS3-compatible joystick to control it.

We’ll admit, the Crazyflie’s complexity gave us paws for thought. But our beloved friend is on the brink of catastrophe, no kitten. We’ll do anything to ensure he’s feline fine again … even write a bunch of clawful puns. ●

Any thoughts on how to overcome feline depression? 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

Ingredients of culinary excellence We invite you to taste the delicious dishes of modern Polish cuisine with a distinct touch of the most sophisticated culinary trends.

Pałac Sobańskich, Al. Ujazdowskie 13, 00-567 Warsaw Booking: (+ 48) 22 523 66 64 www.amberroom.pl

Michelin Guide Recommendation