Will Kraków get the short end of the stick when it comes to rowdy Euro 2012 fans?
Some good may come out of the Independence Day riots in the form of sensible legislation
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WWW.WBJ.PL
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Ratings agency Moody's says the outlook for Poland’s banking sector is ‘negative’
VOLUME 17, NUMBER 46 • NOVEMBER 21-27, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
The man with the plan
Since 1994 . Poland’s only business weekly in English
Game on SHUTTERSTOCK
Poland’s video-game developers are powering up with titles that are scoring global success
Janusz Palikot talks about his party’s political strategy in an exclusive interview with WBJ 8-9
12-13
REAL ESTATE
• Poland at MAPIC • Green retail • Europa Centralna 15-18
In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Politics . . . . . . . . . . . . . . . . . . . . . . .5 Business . . . . . . . . . . . . . . . . . . . .6-7 Interview . . . . . . . . . . . . . . . . . . . .8-9 International . . . . . . . . . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . . . . .20 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23
COURTESY OF CD PROJEKT, ELECTRONIC ARTS, DEEP SILVER/¸UKASZ MAZUREK/WBJ
COURTESY OF REED MIDEM
Lokale Immobilia
Time for reform
Will Belarus rise up?
The new government has been sworn in and Prime Minister Tusk finally sounds serious about making significant economic reforms 2, 3, 5, 11
Former Belarusian presidential candidate Ales Michalevic says that it is only a matter of time before his compatriots revolt 10
NEWS
www.wbj.pl
IN THE SPOTLIGHT
Numbers in the News
Jaros∏aw Gowin
4.3%
COURTESY OF JAROSLAWWALESA.PL
was the annualized level of inflation in Poland in October.
Polish eagle to return? The controversial decision by the Polish Football Union (PZPN) to replace the eagle on the national team shirt with its own emblem has stirred a national debate which could see the Polish government change the law to oblige the team to wear the eagle on its shirt. The unveiling of the eagle-less shirt resulted in widespread criticism from politicians, soccer fans and the media, and it is now believed that PZPN may be forced to give in to public pressure and reinstate the eagle, even before the government changes the law. ●
is the year that Poles might, realistically, start enjoying their first high-speed railway connections. The previous forecast, announced several weeks ago by PKP, mentioned 2020.
52,400 be able to stand up against the people who prop it up, he argued. The reformation of the judicial branch was part of PO’s election program. The planned reforms are to result in a structural reorganization of courts, as well as in the shortening of the period during which cases are processed. Born in 1961 in Kraków, Mr Gowin is an academic teacher and founder of the city’s Tischner European University. He has been in politics since 2005 when he was elected to the Senate. In 2007, Mr Gowin entered the Sejm; since that time he has also been a member of PO. Adam Zdrodowski
is the number of workers Polish businesses are planning to lay off this year, in anticipation of an economic downturn.
Quote of the Week
“Technocratic governments are a myth.” Prime Minister Donald Tusk, responding to a journalist's question about whether he shouldn't have chosen a “government of experts” as the Italians and Greeks have done recently.
Figures in focus Eastern imbalance The euro zone's trade balance with its 10 largest trading partners, January-August 2011, in € billions 37.2
40
29.6
30 13.8
20 10
DATELINE
November/December 22-23 EUROPEAN EMPLOYMENT FORUM Event:
This annual conference and exhibition focuses on social and economic issues connected with employment. Location: Brussels, Belgium employmentweek.com
30
EUROPAPROPERTY OCCUPIER FORUM
Event:
This real estate conference ends with a networking evening and the CEE Green Building Awards presentation. Location: Marriott Hotel, Warsaw europaproperty.com
22-25 GMINA FAIR Event:
GMINA Fair will present leading-edge solutions that affect the technical, social and IT development of regions. Location: MTP, Poznaƒ gmina.mtp.pl
24
YOUNG ART AUCTION
Event:
This event aims to break the stereotype that good art has to be expensive. It offers the opportunity to acquire works that not only have an aesthetic benefit, but also may be a good investment. Location:Pl. Konstytucji 2, Warsaw desa.pl/en.html
28
POLISH RESIDENTIAL MARKET
Event:
This annual meeting of the residential real estate industry provides independent and reliable information about Poland's market.
-7.0
-30 -40
-39.7
-50 -60 -68.6
Cz ec Japa hR n ep ub lic Sw ed en Po la nd
-70 -80
Source: Eurostat
Company index Acteeum Group ................17 Helical Poland ..................15 PKP ..................................15 Alstom ................................2 Home Broker ....................18 Polimex-Mostostal ......2, 15
Location: Novotel Centrum Hotel, Warsaw konferencje.nowyadres.pl
NOVEMBER
-10.2
-20
sia
Violent protesters find shelter in Warsaw cafe Nowy Wspania∏y Âwiat, a coffee shop, culture center and home to a prominent left-wing periodical, was at the center of controversy after Poland’s Independence Day, when a group of allegedly violent leftist protesters sought shelter in the cafe. Critics condemned the journal for giving a safe haven to extremists. The periodical says they weren’t invited in. To find out what really happened, log onto WBJ.pl
16.9
0 -10
On WBJ.pl
14.6
5.2
US
lack of a legal background has already raised some questions about his ability to set about reforming Poland’s legal system. General Prosecutor Andrzej Seremet, for one, was quoted in the Polish media as saying that Mr Gowin will have to overcome a number of obstacles and that his lack of knowledge of the legal establishment will be a major difficulty for him. However, in the opinion of Prime Minister Tusk, the fact that Mr Gowin is not part of the establishment is an asset rather than a liability. The new minister is detemined to deregulate, and in order to reform the system one has to
UK
Jaros∏aw Gowin, a major figure in the conservative wing of the ruling Civic Platform (PO) party, became the new justice minister last week. His nomination was arguably the most surprising decision Prime Minister Donald Tusk made in choosing the make-up of the new Polish government. The nomination of Mr Gowin, who is replacing Krzysztof Kwiatkowski in the position, came as a surprise even for his party colleagues, not least because the politician, a philosopher by education, does not actually have a degree in law. Although holding a qualification in law is not a formal job requirement, Mr Gowin’s
a
Three Polish companies, Mostostal Warszawa, Polimex-Mostostal and Rafako, have together won the largest contract in the history of the Polish energy sector, reported Parkiet. The consortium won a tender to build a two-block power plant in Opole. They will be paid z∏.9.4 billion for the work. A smaller offer was submitted by multinational energy conglomerate Alstom, but state-owned Polish power company PGE, which awarded the contract, rejected that company’s bid.
2030
Ru s
Biggest ever energy contract
is how many people in Poland have changed their open pension fund this year. The figure is 30,000 fewer than in 2010.
COURTESY OF JAROS¸AW GOWIN
MEP Jaros∏aw Wa∏´sa, the son of legendary Solidarity leader Lech Wa∏´sa, has made his first public appearance following a horrific accident in which his motorcycle collided with an SUV on September 2. Mr Wa∏´sa suffered 37 bone fractures, 17 of which required surgery. “I managed to cheat death, this on its own is a miracle … but the fact that I will be able to walk again is another miracle,” he told a press conference at a Warsaw military hospital last Thursday. He said he would never ride a motorcycle again and plans to resume his duties as an MEP next year.
573,600
Tu r Sw key itz er lan d
Wa∏´sa’s son out of hospital
NOVEMBER 21-27, 2011
Ch in
2
Astarta ................................7 Immobel............................15 Polish Investments CD Projekt Red ................12 Jones Lang LaSalle..........17 Real Estate Holding..........15 City Interactive..................12 Kulczyk Investments ..........7 Concorde Capital ................7 Kulczyk Oil Ventures ..........7
PwC ..................................12 Rafako ................................2
Crowley Data Poland ........21 Mayland ............................17 REAS ................................18 Cushman & Wakefield......15 Milkiland ............................7 Sadovaya Group ..................7
DECEMBER
DECK13 Interactive ..........13 Mostostal Warszawa ..........2
1
CFO EUROPEAN SUMMIT
Echo Investment ..............16 MT Development ..............18
Event:
The event will bring together top CFOs and financial executives from across the region to exchange views, discuss key industry concerns and share best practices as they contend with the increasing challenges facing their organizations. Location: Westin Hotel, Warsaw accaglobal.com/cfoeuropeansummit
Shell Nigeria ......................7
1
NEW EUROPE GRI
Event:
This event offers a forum where senior players meet each other and build friendships in a setting devoid of selling pressure. Location: Hyatt Regency mygri.com/neweurope
Skanska ............................15 Electronic Arts ..................13 Neconde Consortium ........7 Standard Life Investments 15 Epic Games ......................13 Neinver..............................17 Suzuki ..............................23 Evolve Motorcycles ..........23 Neinver Polska ................17 Galeria ..........................7, 15 NFI Octava ........................15 Ghelamco Poland ............15 Nigeria Agip Oil ..................7 Griffin Group ....................15 Nissan ..............................23
Techland............................12 Total E&P ............................7 Triton Development ..........18
Groupon ............................18 People Can Fly..................13 Warsaw Stock Exchange ....7 HB Reavis Group ..............15 Peter Nielsen & Partners ..5 X-Trade Brokers Helical Bar ........................16 PGE ....................................2 Dom Maklerski ................19
NEWS
NOVEMBER 21-27, 2011
www.wbj.pl
Economic reform
Prime Minister announces package of major reforms Prime Minister Donald Tusk announced a raft of radical reforms to Poland’s tax and social security system in a speech he gave to parliament last Friday where he laid out his government’s plans for the next four years. Mr Tusk said that the retirement age would be gradually extended to 67, for both men and women. The plan is for the retirement age to be 67 for men by 2020 and for women by 2040. Currently, Polish men can retire at 65 and Polish women at 60. Police officers and military personnel who start working from 2012 will be able to retire after 25 years of service, an increase of 10 years on the length of time people in those professions currently need to work before they can retire. In return, police and military personnel will receive a pay rise of z∏.300 per month, starting from July next year. Special retirement privileges currently given to all miners will only be retained by those who work in a physical capacity, in the actual process of extracting coal. Members of the clergy, who also enjoy spe-
COURTESY KPRM
The markets have long called for hefty economic reform, and the prime minister looks set to deliver
The prime minister announcing his government’s reform package in the Sejm, the lower house of the Polish parliament, on Friday cial privileges, are expected to be brought into the general social security system, although the prime minister did not go into specifics. From February 2012, changes will be introduced to regulate medical social security payments made by farmers. While the state will continue to foot the bill for farmers who own up to six hectares of land, those who hold between six and 15 hectares will have to pay half the cost themselves, and those with more than 15
hectares will have to pay the full cost. The PM also said that from 2013 the first steps will be taken “towards bringing farmers into the Personal Income Tax (PIT) system which other citizens are under.” At present, farmers are not part of the general income tax system.
Financial changes Mr Tusk also announced that tax breaks will be reduced for families that have one child and an annual income above
z∏.85,000. Families with two children will still be able to take full advantage of tax relief while families with three or more children will be aided by an additional tax relief of 50 percent. The PM announced the liquidation of the tax break for internet use and a limitation on tax breaks for journalists and artists earning above z∏.85,000 a year. On the revenue side, social security contributions by employers will be hiked by 2
percent. The government also plans to increase taxes on firms that extract mineral resources such as silver and copper. On the deregulatory front, the government aims to reduce the average length of court proceedings by a third. It also plans to reduce the time it takes to obtain a building permit to 100 days for big projects and to 60 days for smaller ones. At present it can take up to a year to get a building permit of any kind. In addition, Mr Tusk said the budget deficit for 2012 should be “around” 3 percent of GDP, with public debt at 52 percent. The aim is to bring public debt to under 48 percent by 2015. “From the markets’ point of view, the prime minister’s proposals were a very nice surprise. Ratings agencies will be very happy,” Przemys∏aw Kwiecieƒ, chief economist at XTrade Brokers, wrote in a market report. “Suffice it to say that if Western European countries had, without being pressured, embarked on changes on a similar scale, the crisis would be over far quicker. The PM’s speech was so good that one wanted to listen for longer. Let’s hope the realization of the postulates will be equally dynamic and consistent,” he added. Remi Adekoya
Politics
Expelled PiS MPs to form new center-right party
Following Law and Justice’s (PiS) decision to officially expel 16 MPs and one senator who formed the new parliamentary club “Solidarna Polska” (Solidarity Poland), the club’s leader said they now have no option but to form a new party. “In this situation, we are left with no choice but to build a modern center-right political party,” said Arkadiusz Mularczyk, head of Solidarna Polska, after their expulsion was announced. Mr Mularczyk added that he is not worried that Solidarna Polska might fall apart, assuring all those who joined the club that they have made a
“deliberate decision,” to demonstrate a show of solidarity with three other former PiS members, Zbigniew Ziobro, Jacek Kurski and Tadeuesz Cymaƒski, who were previously removed from PiS for voicing public criticism of the party. PiS spokesperson Adam Hofman said members of the parliamentary club had until Friday, November 18, to leave Solidarna Polska and rejoin the party. But the ultimatum went unheeded. Instead, Solidarna Polska’s ranks swelled as another PiS politician, Bartosz Kownacki, joined the rebels in the middle of last week. Commenting on the electability of the potential new rightist party, Sergiusz Trzeciak, a political analyst from Collegium Civitas, said it was too early to judge whether they could be a success, but said he believes it would be difficult to gain the support of
more than a few percent. “Financial factors, the lack of a party structure, how they position themselves on the right of Polish politics, and whether they can unite all the right-wing politicians who are in opposition to [PiS leader] Jaros∏aw Kaczyƒski, are all
factors that will determine if they get more than 2-5 percent of the vote,” he said. Mr Trzeciak also highlighted the importance of gaining the approval of the rightist media to have any hope of taking over from PiS as the main party on the right of Polish
politics. “They need the support of [media mogul and priest] Tadeusz Rydzyk, Radio Maria and [newspaper] Nasz Dziennik to gain more publicity, otherwise it will be very difficult for them to succeed,” he David Ingham added.
COURTESY OF THE EUROPEAN PARLIAMENT
Members of Solidarna Polska said they were left with “no choice” after being forced out of Poland’s main opposition party
Zbigniew Ziobro was expelled from PiS for publicly criticizing the party
3
October inflation at 4.3% Inflation in Poland increased to 4.3% yearon-year in October, the Central Statistical Office (GUS) announced last week. The figure was above that expected by the market. In September, inflation came in at 3.9% y/y. According to the data released by GUS, the most significant rise in prices in October included those of food, clothing, passenger transport and fuel.
J.P. Morgan opens Warsaw branch US investment bank J.P. Morgan marked the official opening of its first branch in Central and Eastern Europe in Warsaw last Thursday. Poland’s strong economic performance in 2009 and continued interest of J.P. Morgan clients has spurred the American bank to strengthen its business in Poland, company officials said.
Car sales down Sales of new cars in Poland declined by just over 7% year-on-year in the first 10 months of 2011, reported Gazeta Wyborcza, which cited European Automobile Manufacturers Association data. Poland’s car market has shrunk significantly despite the country not yet being mired in the same economic difficulties as many other European Union countries. In Greece the car market has almost completely collapsed, with sales over the same period falling by 36% y/y.
Opel freezes production The Opel factory in Gliwice halted production for four working days as of last Thursday evening, due to a drop-off in demand in Western markets. The pause in production means the car maker will reduce output by 3,400 cars. This is not the first time the Opel factory has suspended production. In September, Opel closed on three consecutive Fridays, also due to low demand. It is estimated that this year’s entire output will amount to 174,000 vehicles – 8,000 fewer than the company predicted before the summer period. ●
4
NEWS
www.wbj.pl
NOVEMBER 21-27, 2011
Mass gatherings
Euro 2012
Independence Day violence Will Kraków get the louts? leads to legal changes Police say they are prepared for the possibility of rowdy fans
President Komorowski will look to change Poland’s laws on mass gatherings after some shameful protests on November 11 COURTESY OF WIKIMEDIA COMMONS
President Bronis∏aw Komorowski has announced that his office is working on changes to legislation regulating demonstrations after Poland’s November 11 Independence Day celebrations turned violent, with both nationalist and anti-fascist demonstrators Police arrested a total of 210 people following the outbreak of violence clashing with police in the Protestors also set two Blame City Hall? City Hall has submitted its capital. The violence erupted vehicles belonging to televi- Warsaw City Hall has come suggestions to the president around Warsaw’s Plac Konsty- sion station TVN on fire, while under criticism for allowing about how the legislation tucji, where the leftist protest- a Polsat news van and 14 the demonstrations to take should be changed. “We requested that City ers had gathered intending to police cars were also damaged. place at the same location. block the path of the national- Police arrested a total of 210 However, Agnieszka K∏àb, Hall would have the ability to ist marchers. Police had sur- people following the distur- deputy spokesperson of War- decline granting permits for rounded the leftists in an bances. saw City Hall, told WBJ that more than one demonstration President Komorowski said “according to article 52 of the taking place in the same area, effort to keep the two groups separate. But the demonstra- he felt “deep pain and sad- Constitution, City Hall is at the same time,” she said. The other suggestions were tions quickly devolved into ness,” about the clashes, and obliged to permit demonstrachaos, with demonstrators announced his office would tions, even if they are to take that pyrotechnical equipment throwing trash cans, safety begin work on amending legis- place in the same area and at (such as road flares, which barriers, bricks, water bottles lation on mass gatherings to the same time, and even if the many of the protesters carried and firecrackers at police and give police more power and people are representing during their march) as well as the covering of faces, be forjournalists who were at the attach more responsibility to opposing ideas.” Izabela Depczyk protest organizers. scene. Ms K∏àb said that Warsaw bidden.
The decision of the English and Dutch soccer associations to base their countries’ national teams in Kraków during Euro 2012 has heightened fears that despite not being a host city, Kraków may still make the headlines next June, but for all the wrong reasons. In a city that already has bars hanging signs that read “no English” on their doors as a result of incidents involving drunken tourists, the arrival of fans from England, the Netherlands, and possibly Italy, which is also considering using Kraków as its base, has led to worries that it could be a potential trouble spot. But Kevin Mills, international coordinator of the Football Supporters’ Federation (FSF), told WBJ that just because the teams are based in Kraków does not necessarily mean the supporters will stay there. “Where the team is based has absolutely no bearing on where the fans stay. The sup-
porters don’t follow the team headquarters, they follow the games.” According to the Kraków police, the authorities are prepared to deal with any trouble rowdy fans might cause. “Of course we are aware of animosities between football fans, and we are going to be dealing with them appropriately,” said Dariusz Nowak, spokesperson for the Kraków police. However, when pressed by WBJ on specific security plans, Mr Nowak was somewhat evasive. “I’m telling you, we are prepared, but we also still have time to establish our tactics,” he said. For Mr Mills, the more serious concern is what he perceives as the unfair reputation English fans have as troublemakers, particularly considering that according to the FSF, no England fan has been arrested abroad for a soccer violence offense in recent years. “We played in Poland quite recently and there was not a hint of problems occurring,” he said. David Ingham, Izabela Depczyk
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POLITICS
NOVEMBER 21-27, 2011
www.wbj.pl
5
New government
The faces of Poland’s new government Prime Minister Donald Tusk has drafted in some fresh faces for his new government, but some familiar figures still remain Last Friday, Prime Minister Donald Tusk and his ministerial nominees were sworn in as Poland’s new government. Several ministers who served during the last parliamentary term got to keep their jobs while others weren’t so lucky. A number of the nominations were expected, but others came as a surprise to many observers. WBJ takes a look at the 20 people who will be running Poland’s government.
The major players Prime Minister Donald Tusk
blame for the tragedy, in which President Lech Kaczyƒski and 95 others died. Mr Siemoniak previously served as an undersecretary of state in the Interior Ministry. Justice Minister Jaros∏aw Gowin
He was named European Finance Minister of the Year in 2009 by The Banker magazine and reportedly Mr Tusk relies on him heavily. Mr Rostowski was born into an exiled Polish family living in London. He attended Westminster School in London, which he followed up with undergraduate and postgraduate studies at University College London and the London School of Economics respectively. Before joining PO, he was a member of the UK’s Conservative Party. Foreign Minister Rados∏aw Sikorski
Deputy PM and Economy Minister Waldemar Pawlak
Probably the most controversial of the new ministerial choices. Jaros∏aw Gowin, who is not a lawyer by profession, as past justice minsters have tended to be, is one of the leaders of the conservative faction within PO. He is a philosopher by education and has never held an administrative position before. Many observers, including those in legal circles, have expressed skepticism about whether Mr Gowin will be up to the job.
Rados∏aw Sikorski is also keeping his job and will continue to be in charge of Poland’s foreign policy. The former journalist served as minister of defense from 2005 to 2007 in the government led by Law and Justice (PiS). He later parted ways with PiS and joined PO, where he is now deputy party leader. He has been foreign minister since 2007.
Another two-term minister. Under the coalition agreement between PO and PSL, the latter gets to control the agriculture ministry and as Mr Sawicki was PSL’s choice for the job, his appointment was never in doubt.
Culture Minister Bogdan Zdrojewski Mr Zdrojewski was the first mayor of Wroc∏aw after the fall of communism in Poland, holding the seat from 1990 to 2001. He has been culture minister since 2007.
Before Mr Korolec was appointed environment minister by Donald Tusk last week, he was undersecretary of state in the Economy Ministry.
Education Minister Krystyna Szumilas
The popular new minister was once a star of the Democratic Left Alliance party before jumping ship for PO earlier this year. He is a doctor by profession but will not find it easy dealing with the complex problems that infuse Poland’s inefficient and muchAt just 30 years of age, PSL member W∏adys∏aw KosiniakKamysz will be by far the youngest minister in the new government. His appointment is also part of the coalition agreement, as PSL gets to control the Labor Ministry. His father was minister of health in the first post-communist government in Poland.
Tomasz Siemoniak, although one of the “old” ministers, is actually still rather new. He was appointed defense minister by Donald Tusk in August this year after his predecessor Bogdan Klich was forced to resign due to findings of a team charged with investigating the 2010 Smolensk plane crash. The investigation revealed that the army’s poor planning and training procedures were at least partly to
Ms Bieƒkowska has served as the minister of regional development since 2007. She is widely considered one of the best ministers the PM has at Remi Adekoya his disposal.
lamented public health system.
Internal Affairs Minister Jacek Cichocki The 40-year-old former undersecretary of state in the Chancellery of the Prime Minister once headed the Center for Eastern Studies, a prominent think tank.
Minister in charge of the Chancellery of the Prime Minister Tomasz Arabski Tomasz Arabski held this post in the last government. He is one of the closest politicians to the PM and is in charge of technical, legislative, legal and organizational support for the prime minister, deputy prime minister and the Council of Ministers.
Science and Higher Education Minister Barbara Kudrycka Ms Kudrycka is one of the ministers who will be serving for a second term. Before becoming minister four years ago, she was a member of the European Parliament from 2004 to 2007.
Sports Minister Joanna Mucha
Environment Minister Marcin Korolec
Health Minister Bartosz Ar∏ukowicz
Regional Development Minister El˝bieta Bieƒkowska
Finance Minister Jacek Rostowski Jacek Rostowski will remain in charge of Poland’s finances.
Micha∏ Boni was one of the prime minister’s closest and most trusted advisers in the last government. Widely considered the best strategic thinker in the PM’s team, he will now be in charge of a ministry, which along with overseeing the country’s administration, will be responsible for the general “digitalization,” of Poland.
Before her appointment as minister last week, Ms Szumilas had been undersecretary of state in the Ministry of Education, holding that post since 2007.
Defense Minister Tomasz Siemoniak
Mr Pawlak was able to retain both positions thanks to the fact that he is the leader of Civic Platform’s junior coalition partner, the Polish Peoples’ Party (PSL). He is an old hand in Polish politics, having twice served as prime minister, once for a month in 1992 and then from 1993 to 1995.
Administration and Digitalization Minister Micha∏ Boni
Agriculture Minister Marek Sawicki
Labor Minister W∏adys∏aw Kosiniak-Kamysz The first politician to lead his party to back-to-back parliamentary election victories in post-communist Poland, Donald Tusk is undoubtedly the most powerful politician in the country and will likely remain so for the next few years. Mr Tusk has vowed not to run for a third term as prime minister, however. He is the current head of Civic Platform (PO).
Other ministers
Another controversial appointment. Ms Mucha has never held public office before and had not previously held a sports-related position. The appointment of the photogenic politician has been criticized by many as being purely an exercise in PR ahead of the Euro 2012 soccer championships.
Transport, Construction and Sea Trade Minister S∏awomir Nowak Mr Nowak is a new minister and will be taking over the ministry in charge of upgrading Poland’s creaky infrastructure, including its roads, highways and train systems.
Treasury Minister Miko∏aj Budzanowski Miko∏aj Budzanowski, a historian by education, previously served as undersecretary of state in the Treasury Ministry, starting in 2009. ●
Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl
Positive judgment for investors in wind-power plants According to a judgement from the Supreme Administrative Court, (case file no. II OSK 1004/11) municipalities may not overly hinder the actions of investors within the wind energy sector. The dispute was connected to the resolution of the Wronki City and Municipality Council of June 30, 2010 on the study of conditions and directions of spatial development. The Wronki officials decided that the future location of wind-power plants will be possible only after the local zoning plan has been prepared. The Supreme Administrative Court clearly stated that zoning rules may be defined both in the local zoning plan and (in case there is no such plan) in a location
decision. Thus, when there is no zoning plan, municipalities may not introduce a general prohibition of construction of wind-power plants. In such a case, the investor will be able to apply for the relevant location decision.
Long-term program for railway investments On November 7 the government accepted a resolution on establishing the “LongTerm Program of Railway Investments for the Year 2013 with the Perspective until 2015.” The program is aimed at improving the quality of performance of railway services, shortening travel time, increasing travelers’ safety, increasing the possible mass of transported goods as well as implementing new technical and environmental standards. ●
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6
BUSINESS
www.wbj.pl
NOVEMBER 21-27, 2011
Banking sector
Central bank head Marek Belka said Poland’s lenders are in good health Moody’s decision to lower the outlook for Poland’s banking system to “negative” from “stable” has been condemned by prominent Polish officials, who argue that it is not indicative of the relative health of the sector. The ratings agency reduced its outlook for Poland’s banks last week on the expectation that their future profitability would be affected by a deteriorating operating environment. The share prices of many Polish banks dropped on the news. Marek Belka, head of the National Bank of Poland, said
the decision was “stunning and surprising,” adding that it could lead to Polish banks being devalued. He added that Polish lenders are well-capitalized. “If we had to look for reasons for such a move, then of course this is related to the situation of the banking system in Europe,” he told reporters. Euro-zone banks are being required to raise their capital ratios, a fact which could see financing for their Polish units squeezed. “Half of short-term financing to Polish subsidiaries from European parents matures in 2012. Will they want to finance their unit on the same terms?” Mr Belka said. Andrzej Jakubiak, chairman of the Financial Supervision Authority (KNF), said
Moody’s decision was surprising in the light of Polish banks’ latest earnings reports. “I don’t see any justification for this decision given the condition of the Polish banking sector,” he told reporters. According to figures from the KNF, the combined net profit of the Polish banking sector after the first nine months of 2011 was z∏.12 billion, 40.7 percent higher than for the same period of last year. In Q3 alone, Polish banks generated a combined net profit of z∏.4.2 billion, a 37.4 percent increase over Q3 2010.
External shocks Moody’s outlook for Poland’s banking sector expresses the agency’s expectations for the next 12-18 months, during
which time Polish economic growth is expected to slow due to weakening in the economies of its main European trading partners. “Whilst Poland is more insulated from the turbulence in the euro area than some of its smaller neighbors, it is not immune to external shocks. Moody’s therefore expects that weaker growth in the major Western European countries, fiscal consolidation and restrained bank lending will suppress the pace of economic expansion in Poland and affect banking system performance,” Moody’s Investors Service wrote in a Banking System Outlook report. Weaker growth, the agency said, will lead to asset-quality deterioration and increase
COURTESY OF INTERNATIONAL MONETARY FUND
Moody’s lowers outlook for Poland’s banks, angering Polish officials
Mr Belka described Moody’s decision as “surprising” funding competition. This will curb banks’ ability to expand their lending activities and therefore limit revenues, Moody’s wrote.
Under fire Ratings agencies have found themselves under fire recently, with the European Union saying last week that it wants to
allow investors to sue ratings agencies if they contravene EU regulations “intentionally or with gross negligence.” The measure is part of a proposed regulation that would also seek to make ratings agencies more transparent in how they decide on a company or country’s creditworthiness. Gareth Price
The economy
World Bank: Poland’s economy to slow, but remain healthy The troubles in the euro zone will “calm down” next year, Kaspar Richter, senior economist at the World Bank, told WBJ in an exclusive interview Poland’s economy is forecast to slow down next year from the 4 percent growth expected this year, but still expand at a rate of 2.9 percent, the World Bank said in a report released last week. The report focused on the prospects for the EU’s 10 newest countries (Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia), saying they were “well on the growth
track in the first half of 2011,” but that growth had “moderated in the second half of 2011 in response to the deterioration of the external environment.” Among the 10 countries, 2012 economic output is projected to exceed pre-crisis levels only in Poland, Slovakia, and the Czech Republic. So, what exactly is keeping the Polish economy going? “Poland’s growth has held up largely due to strong
domestic consumption – that is making the difference. This has been particularly impressive because in 2011 we have witnessed fiscal adjustments to bring the deficit down but still consumption has remained strong,” said Kaspar Richter, senior economist at the World Bank for the Europe and Central Asia region. “We expect consumption to remain strong next year due to an increase in wages and a slight decrease in unemployment. Also, adjustments in Poland’s exchange rate have played a part and we believe net exports will make a net positive contribu-
tion to growth next year,” he added.
A storm before the calm? Mr Richter also said he believed the situation in the euro zone would “calm down” next year and that in 2013, the overall climate would improve. This would in turn affect Poland’s growth positively. When asked about the basis for this optimistic prediction for the euro zone, Mr Richter said the “big difference now is that what we have is an ongoing story of volatility and not an unanticipated shock like in 2008, and so
adjustments are easier to deal with in such a situation.” Explaining what he thought Poland would have to do to maintain growth and keep the trust of investors, Mr Richter said it was “important that the current fiscal adjustments to reduce the deficit continue next year” as this would help strengthen financial markets’ confidence in Poland.” The World Bank economist also suggested certain things that Prime Minister Donald Tusk’s government could do which “would not cost money,” such as improving an already fairly efficient system for absorbing EU structural
funds and improving the business environment. “In our Doing Business ranking, even though Poland made progress on some reforms, the country is doing worse than it could be,” Mr Richter said. He also talked about the importance of increasing the labor force participation rate, which he said was still “relatively low in Poland in spite of improvements in the last few years.” “There need to be initiatives to help prepare people on the skills side so more people work as long as they remain healthy,” he stressed. Remi Adekoya
BUSINESS
NOVEMBER 21-27, 2011
www.wbj.pl
7
Ukrainian listed companies
Corporate governance strong among Warsaw-listed Ukrainian firms, report finds Ukrainian companies listed on the Warsaw Stock Exchange have, on average, higher levels of corporate governance than Ukrainian companies listed anywhere else, according to scores given in a 2011 report by Concorde Capital, a Kiev-
based brokerage. Warsaw-listed Ukrainian firms were given an average corporate governance score of 8.8 out of 10, followed by those listed in Frankfurt (8.7) and London (8.4). Kiev-listed companies lagged behind significantly, receiving an average of 4.3. “A big reason why Ukrainian companies listed on the WSE have higher corporate governance ratings than other
Oligarch’s paradise Average corporate governance score of Ukrainian firms by ownership type 8 7
6.7
6
6.4
Overall average score: 5.2
5
5.5 4.7
4
4.2
3 2 1
Ma
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)
iga
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(5
19 e( at St
Ot
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11)
) (9 C TN
Ol
na
ge
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(24
)
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*Number in parentheses indicates number of rated companies falling within that ownership category Source: Concorde Capital’s 2011 Corporate Governance in Ukraine report
Ukrainian companies is due to the best practices of WSE listed companies, which [they] must adhere to on a complyor-explain basis. If these requirements did not exist, Ukrainian companies probably would not even consider them,” said Brad Wells, a corporate governance analyst at Concorde Capital. Mr Wells recounted the story of one Ukrainian company that, when applying to list on the WSE, was told to go back and create a basic website with its name and a page to place its financial reports. “They did not see the value in it, but the regulator refused to let them go ahead with their placement until they complied.”
COURTESY OF WARSAW STOCK EXCHANGE
That’s in stark contrast to Ukrainian firms that are controlled by oligarchs
Ukrainian firms on the WSE had an average corporate governance score of 8.8 out of 10 Ratings were given based on the numerical score, and range from Quality, through Above Average, Average, Below Average and Poor. A total of 15 companies were given a quality rating, three of which are listed on the WSE: Astarta, Milkiland and Sadovaya Group. Ukrainian firms have been active on the WSE recently, with the bourse launching its WIG-Ukraine index in May. The index, a separate listing that currently comprises 10 Ukrainian companies, was established
Quality ratings In Concorde Capital’s report, a total of 114 public Ukrainian companies were judged on 10 different criteria that the brokerage says indicates effective corporate governance practices. Criteria include management accessibility, ownership disclosure and corporate structure disclosure.
Polish billionaire Jan Kulczyk spent z∏.771 million on purchasing a stake in an oil and gas concession in Nigeria, several Polish media reported, citing sources close to the transaction. Neconde Consortium, a group comprising Kulczyk Oil Ventures (KOV), Kulczyk Investments (KI), three Nigerian companies and local residents, reportedly purchased a 45 percent stake in the OML 42 concession. KOV and KI each hold 20 percent stakes in Neconde Consortium, or a combined 18 percent of the OML 42 concession. KOV and KI declined to comment on the reports. Neconde Consortium paid around $600 million for the stake, $240 million (z∏.771 million) of which was reportedly paid for by Mr Kulczyk’s companies. Finalization of the purchase is a key condition KOV needs to meet before it is allowed to debut on London’s AIM Market. The government-owned Nigerian National Petroleum Corporation now controls the remaining 55 percent of OML 42. The sellers were Shell Nigeria, Total E&P and Nigeria
COURTESY OF WIKIMEDIA COMMONS
Kulczyk spends z∏.771 million on Nigeria oil concession stake
A consortium comprising two of Jan Kulczyk’s firms purchased a 45 percent stake in the concession Agip Oil. According to Shell data, there are 2.4 billion barrels of
oil equivalent (BOE) at OML 42. Gareth Price
in response to increased interest in the WSE from Ukrainian firms and forms part of the bourse’s strategy to attract more firms from the east.
Oligarchs dominant Oligarchs, who have long exercised a powerful influence over politics and the economy in Ukraine, are the dominant force in Ukrainian corporate culture, Concorde Capital says. Collectively, oligarchs comprise the largest single majority shareholder group out of
the companies surveyed by Concorde Capital. Moreover, they also had the lowest average corporate governance score of any group (4.2). “In companies they control, elements like supervisory boards and audit commissions, executive management and corporate communication professionals are often just cogs in an oligarch’s broader empire,” Concorde wrote. No Ukrainian companies listed on the WSE are controlled by oligarchs, the company said. Gareth Price
8
INTERVIEW
www.wbj.pl
Poland’s ‘most famous cat’ dies
Palikot’s Movement
Crafting a political identity
Alik, the pet cat of Law of Justice leader Jaros∏aw Kaczyƒski, died following a long fight with kidney problems. He was 12. The cat was often referred to in the media as “the most famous cat in Poland,” due to its association with the former prime minister. Alik was named after Aleksander, Mr Kaczyƒski’s grandfather.
SHUTTERSTOCK
Euro 2012 teams The 16 teams who will compete to win next summer’s Euro 2012 soccer championship’s in Poland and Ukraine are now known after four playoff games concluded last week. There were no major surprises, with Croatia, the Czech Republic, Portugal and the Republic of Ireland all easily progressing. The other teams are: Poland, Ukraine, Denmark, England, France, Germany, Greece, Italy, Netherlands, Russia, Spain and Sweden. ●
NOVEMBER 21-27, 2011
Janusz Palikot, the head of Palikot’s Movement, the surprise party in the recent parliamentary elections, talks to WBJ about his party’s electoral success, its political strategy and his expectations for the future
Ewa Boniecka: Palikot’s Movement (RP) gained 10 percent of the popular vote, largely by presenting itself as an anti-establishment party. What is your party’s strategy now that it has made it into parliament? Janusz Palikot: That’s an important question and we are now deliberating on it within our party. My answer is that I believe the future standing and image of parliament will not be settled by the present parliamentary establishment, as is generally thought, but will instead be decided [at the grassroots level] in Poland. So, while working in parliament as an opposition party, we want to carry on with our grassroots activities and hold on to all those assets which helped us to achieve electoral success. This means caring for and strengthening our direct ties with Poles to show that, as always, we are listening and talking with them. This will take various forms, including my traveling through Poland and meeting with people, and the setting up of bureaus where those who have been expelled from their homes or who have had to deal with other concrete problems and troubles can come and receive legal and social advice and help. We will also establish open clubs in the offices of our MPs, offering many forms of social activity, among them discussions about politics, economics and social problems. These clubs will also involve discussions about new books and include meetings with interesting people from all walks of life. We want to communicate with people in ways that are different to those used by the traditional, establishment parties. Would you still describe Palikot’s Movement as an anti-establishment party? I do not treat such a description as an aim in itself. We are not wedded to the anti-establishment label. We are a democratic left-liberal party which wants to change Poland for the better. Yet our party has its own ideological character and program and is not a part of the traditional establishment. I would compare the position of Palikot’s Movement to that of the Green Party in Germany. Your party has already experienced the reality of the Polish parliament during a recent vote for your party’s candidate for deputy speaker of the Sejm, Wanda Nowicka. How do you assess that battle? I think that the sharp exchange of words during that debate
clearly expressed the fact that our party is bringing new issues and ideas into parliament. It was clear that Wanda Nowicka, a well-known social activist and executive director of the Polish Federation for Women and Family Planning, had won a democratic mandate and that our parliamentary caucus had the right to propose a candidate for deputy speaker of the Sejm. It was also clear that our candidate, like each party’s candidate for deputy speaker, represents certain political views. Yet after MP Robert Biedron, the first openly homosexual MP, presented Wanda Nowicka in the Sejm, the shameful row began. The reaction of many MPs showed the intolerance towards sexual minorities [in parliament]. Such an ugly demonstration by so many members of parliament deserves contempt and discredits Poland in the European Union. An ideological battle seems to have broken out over your motion for the removal of a cross from the wall of the Sejm. How do you think this dispute will end? The removal of the cross from the Sejm is one of the postulates in our packet of draft bills dealing with the separation of the church and state and the position of the Catholic Church in Poland. Our party won a mandate to proceed with these matters. Poland’s constitution says that the state should be secular and my party wants to make sure that those guarantees are carried out in practice. I presume that our motion for the removal of the cross will be rejected by the Sejm, yet the problem will not disappear because Poles want to see a division between the role of the church and state. I am not calling for a war against religion or the Catholic faith and my party is not radically anti-clerical, as some commentators claim, but we are opposed to Catholic fundamentalists who want to stop all change, even modest reforms, which relate to ethical matters, and try to keep Poland a backward country. With regard to ethical problems, we would first put forward a draft bill concerning the financing of in vitro fertilization from the state budget and, following that, a civil unions draft bill. We would then see how Civic Platform (PO) reacts and whether it fulfills its electoral promise to support these bills. Let’s move on to your social agenda: what are you offering that is new?
I would like to point to our new project, called the bill of “the last shirt,” which was prepared in cooperation with radical left activist Piotr Ikonowicz. It seeks to support the protection of the poorest debtors ... by preserving a small part of their possessions which would allow them to survive and also limit the number of evictions from communal flats.
“We are opposed to Catholic fundamentalists who want to stop all change” To what extent are you cooperating with the Democratic Left Alliance (SLD), and what are the prospects of you building a single leftist party together? We have some common or similar postulates with SLD in ethical and social matters and as leftist parties we should cooperate in pushing these in parliament. But SLD has been very inconsistent in pushing its leftist agenda so I do not know how they would act now that they have an internal crisis. And the talk on their part of organizing a congress of leftist parties and organizations is in my view very premature and certainly my party would not agree to participate in such a conference under an SLD umbrella. We obtained a much stronger electoral mandate than SLD and my party is consistent in its leftist agenda, so I would first like to negotiate the conditions under which such a congress would be held. SLD could only be one part of such a congress; the process of building a large leftist party should be concentrated around Palikot’s Movement. Your party has a liberal approach to economic matters. How do you view the idea of cooperating with PO in conducting financial and economic reforms? We have already prepared draft bills dealing with the reform of finances and tax structures, and with the elimination of administrative obstacles that block economic activity. We want a linear tax set at 18 percent, which would not need to be paid by those who earn less than z∏.2,500 per month. We also want to use the more-than 100 projects that were prepared by the former parliamentary commission “The friendly State,” which I once chaired, and introduce them again.
INTERVIEW
SHUTTERSTOCK
NOVEMBER 21-27, 2011
I look at human capital, including the potential of poor people in helping to drive economic growth, and point to the connections between economic reforms and social, educational and cultural policy as necessary elements of Poland’s development. My party would be willing to support certain economic postulates put forward by PO, but only if they agree with our own economic measures. I think that we could also help PO leader Donald Tusk push through reforms to the Agricultural Social Insurance Fund (KRUS) and the Social Insurance Institution (ZUS), which the [agrarian] Polish People’s Party (PSL) would be reluctant to make. Yet I want to emphasize very firmly that we would not support PO in order to meet that party’s interests, but only to [introduce reforms] which we consider to be important for our country’s modernization. I do not position my party in total opposition, negating everything the government would do, but we will carefully and in a matter-of-fact way verify the government’s policy. So I think that Palikot’s Movement would be at its most effective on the opposite side of parliament. There are many in your party’s parliamentary caucus who are still unknown to most Poles. How do you evaluate the ability of all 41 members? I know them well and worked with all of them during the whole of last year. Among them are owners of small and medium-sized firms, managers
working in various corporations, and other professionals. I can tell you that their capacity for serving in parliament is in my view greater than that of the average MP. They have a fresh and practical approach to economic matters, are aware of the social needs of normal Poles, and want Poland to be a secular and progressive state. They represent new blood in parliament, the demonstration of a respect towards sexual minorities, and I feel satisfaction in leading them as the chairman of RP’s parliamentary caucus. I was surprised to learn that you intend to change the name of your party, and even moreso by your method for doing it: namely through a kind of public competition. Don’t you think that it should be you, as the founder and leader of the party, who should propose a new name? We will, of course, propose a new name for our party and we already have a proposal, but I do not see a reason why many people would not participate in the process of selecting our new name. Our party has an open character, we want to use our offer to reach out to new groups of voters and this [public competition] would be a good occasion to do this. I want to prepare the party for a future electoral victory, to change it in some respects and ensure that it has the ability and capacity to establish coalitions. Poland is changing, modernizing and I believe that it will be our time in the next election.
What makes you believe that your party will be victorious in the next election? A realistic assessment of the political situation. [Main opposition party] Law and Justice is split and is in decline, so it could no longer be used by Civic Platform to scare voters. PO has already disappointed many people and I believe it would continue to disappoint, because in real life it is more conservative than its declarations would suggest. Thus, I think that one-third of its present voters would turn towards my party. I see in Poland a growing desire for a broad policy of deregulation, related to everything: economic and social policy, not only marijuana. And SLD would not undertake such reforms. We are facing a major economic crisis in Europe that is beginning to affect Poland, so how do you see our economic prospects? In the medium term the Polish economy will still be attractive for investors and we will have 2-3 percent economic growth. This is of course too slow to speed our development, but I believe that when the reforms I suggest are implemented, including approval of a very important construction law, our GDP could grow at a rate of 4-5 percent per year. Looking at the longer term perspective for Poland, I am certain that my party’s innovative approach in dealing with the country’s problems will bring us electoral victory and transform Poland into a modern and successful country. ●
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9
INTERNATIONAL
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Poland in NATO Cyber Center Poland and the US are the latest countries to join the NATO Cooperative Cyber Defense Center of Excellence (CCD COE). CCD COE was formally established on May 14, 2008, in order to enhance NATO’s cyber defense capabilities. With Poland and the US joining, CCD COE now comprises 10 nations. These 10 participate in CCD COE’s work and contribute to its budget.
Euro-zone economy grows While the euro zone hasn’t yet slipped back into recession, registering 0.2% GDP growth in Q3, analysts are still predicting that a downturn could be just around the corner. Germany and France recorded q/q GDP growth of 0.5% and 0.4% respectively in Q3, but in Portugal GDP fell by 0.4 percent and in Greece by 5.2%. ●
NOVEMBER 21-27, 2011
Belarus
On the brink of rebellion? As economic disaster looms over Belarus and the authoritarian regime intensifies repression, Ales Michalevic, a lawyer and a candidate in the country's 2010 presidential elections, tells WBJ that it's only a matter of time before the people rise up Ales Michalevic was among the over 600 people arrested in Minsk on the night of December 20, 2010, when opposition supporters took to the streets to protest the reelection of President Aleksander Lukashenko to a fourth term. One year earlier, Mr Michalevic was launching his presidential campaign, calling for a real division of power, the establishment of democratic institutions and the peaceful modernization of Belarus. As a lawyer and opposition figure in a country which has been under President Lukashenko’s iron rule since 1994, he was aware of the methods employed by the Belarusian security services, the KGB. However, he was not prepared for a two-month stay in Belarusian jail, where he says he was repeatedly subjected to torture. Sleep-deprivation and repeated naked-body searches during which prisoners were “made to stand naked in a
‘stretch vice’: [their] legs were held up, forcing them to be stretched almost to a full split,” were among the many KGB techniques Mr Michalevic says he had to endure while in custody. “I definitely knew that such methods were used in Belaru-
while simultaneously tightening their grip on the population. As a result, it is only a matter of months before the population rebels, he said. “Since last December, the situation in Belarus has definitely changed. I would agree that the country is unofficially under a state of martial law, where people are not free to gather and the government is increasing controls.” Kamil K∏ysiƒski, an expert on Belarus at Warsaw’s Centre for Eastern Studies, says Belarus is now starting to show similarities
“I think it is impossible to keep the protests down … it will be like a sudden explosion” sian prisons, but I was really surprised that the authorities decided to treat public figures in this way.” Following his release, Mr Michalevic subsequently fled Belarus in February 2011 before being granted political asylum in the Czech Republic.
Dangerous times Belarusian authorities are losing control over the economy
with North Korea, another country in the grip of a dictatorship. “The situation is getting very dangerous,” he told WBJ. Belarus’s perilous financial situation means the country is almost certainly heading for economic ruin. The exchange rate of the Belarusian ruble is declining steadily and the country’s economy ministry expects an inflation rate of 118 percent by the end of the year. The state is also planning to tighten rules for obtaining consumer loans, to reduce government programs and restrain wage growth below the rate of inflation. Mr Lukashenko continues to reject economic and political reforms that would enable him to access muchneeded international loans. At the same time, the regime is taking several measures to strengthen its grip on civil society, in order to prevent protests it fears will occur as a result of declining salaries and living conditions (see box).
Uprising likely? Experts WBJ spoke with said it was difficult to tell how long it will take before the Belarusian people start resisting and the existing fragile balance tips over. However, Mr Michalevic said he is convinced the increased repression will not succeed in silencing Belarusian civil society. “I think it is impossible to keep the protests down, although I do not believe this will be a slow process. Rather it will be like a sudden explosion. People are not protesting now, but at some point the majority will understand that it’s possible to speak out, and they will act at once. I expect this to happen within the next one or two years. We will see crowds of people on the streets of Minsk.” He is also convinced that the government is so desperate to maintain its grip on power that
COURTESY OF MICHALEVIC.ORG
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Mr Michalevic says he was tortured by the Belarusian KGB it could resort to bearing arms against its own citizens if protests do erupt. “The government is prepared, and they are ready to shoot. They will try and keep the situation under control by any means, and if that means shooting people, they will do it,” Mr Michalevic said.
Soviet legacy “No one else will solve our problems, but the European Union and the civilized world should support civil society in Belarus by any means and with any possible method. I don’t want to see a situation like in Libya where killing one dictator only gives rise to a new one, just because there was not a strong civil society,” he said. It remains a mystery to many how such a repressive regime continues to exist in the heart of Europe. According to Mr Michalevic, President Lukashenko was first elected in 1994 because people believed that it was really possible to restore the Soviet Union. “Unlike in 1994, when people thought what was needed was economic growth, not democracy, now the
majority are prepared for independence and development according to European standards.” He is also confident that once the country regains freedom, it has strong fundamentals on which to rebuild its economy. “Belarus is welldeveloped. We have modern energy infrastructure, a very well-developed railway system and great highways, unlike in Poland. Many Belarusians are also very highly educated in technical sectors like engineering.” “We are a part of the Soviet Union that was developed, but developed in a very authoritarian way. Belarus was never part of the third world, and with three neighbors who are part of the European Union, we should have higher standards of human rights,” he said. Alice Trudelle
Ales Michalevic was in Warsaw recently, where he received Canada’s John Humphrey Award for human rights. It was the first time the prize was ever awarded to a European. Log on to WBJ.pl for the transcript of the full interview
Tightening the screws September: The Investigative Committee, directly subordinate to the president, is initiated. As of January 2012, it will take over the powers of investigation from the prosecutors’ office, the Interior Ministry and the State Control Committee. October: Draft amendments to the statutes of the KGB are sent to parliament, which would establish the KGB’s independence in its operational methods, including the use of physical coercion and surveillance. November: President Lukashenko grants regional governors and the mayor of Minsk the rank of general and presents a plan to create a 120,000-strong territorial army. The move was caused by an external threat, especially from the West, Mr Lukashenko insists. Ongoing: Trial of Ales Bialiatski, head of the Viasna NGO. He is accused of concealing the true scale of his income. Source: Centre for Eastern Studies, Solidarity with Belarus information office
OPINION & ANALYSIS
NOVEMBER 21-27, 2011
www.wbj.pl
Now, Mr Tusk, deliver readiness for the difficult economic times that lay ahead. The PM started his speech by pointing out that Polish GDP grew by over 15 percent in the years 2008-2011. By comparison, the second-best performer in the European Union, Slovakia, increased its own economic output by 8 percent over the same period. Meanwhile, European Union countries’ GDPs shrunk, on average, by 0.4 percent in those years, the prime minister pointed out.
rating hiked by one or more of the major ratings agencies. That would be welcome news. If Poland wants to remain a leader in European economic growth, then the confidence of investors in the nation’s public finances is essential. The PM’s speech was also very politically savvy as he made several references to “social justice,” articulating the case for the cost of the crisis to be borne by all social groups (read: including farmers, priests and the rich, groups which all currently enjoy special privileges) and not just by a few or by the poor. COURTESY OF WIKIMEDIA COMMONS
P
rime Minister Donald Tusk’s speech to parliament last Friday in which he outlined his government’s plans for the next four years, was one of the most significant made by a Polish prime minister in the last two decades. Mr Tusk, often accused during the last parliamentary term of playing it safe, announced such a bevy of reforms in his one-hour speech that it was hard to keep up. To name just a few: the retirement age will be leveled out for men and women and raised to 67 (today it is 65 for men and 60 for women); farmers are to be brought into the general social security system, as are members of the clergy; miners’ pension privileges are to be limited; uniformed personnel will have to work for 25 years as opposed to the current 15 before they can retire. Several tax breaks will also be eliminated or reduced. In short, Mr Tusk has laid out a plan under which Poland will seek to repair its public finances and improve its credibility among investors, in
A bold start bold indeed. As most economic analysts said after the speech, the markets will be very happy with Mr Tusk’s plans. If he delivers, Poland could see its credit
For a country which is not under the kind of pressure from the markets that Italy, Greece or Spain are, the reforms to the Polish system that Mr Tusk has promised are ambitious and
Smart timing Mr Tusk announced these reforms
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Editorial right at the beginning of a new parliamentary term. And now is the smartest time to implement such farreaching changes, as the government has earned a solid mandate to rule and does not fear for its position as it might if elections were just around the corner. There will be no domestic elections for the next four years and the PO-led government has given Poles plenty of time to forget the anger many of them are likely to feel as a result of the planned changes. The reforms Prime Minister Donald Tusk has proposed will no doubt be opposed by many special-interest groups, who will likely try to block at least some of them. Let’s hope Mr Tusk will have the determination to stay the course and make sure these necessary steps are implemented. ● Warsaw Business Journal’s editorial board consists of editor-in-chief Andrew Kureth, managing editors Gareth Price and Alice Trudelle, and politics editor Remi Adekoya
Cross-border banking in the balance Erik Berglof
T
he gravity of the euro-zone crisis has finally sunk in. The stakes could not be higher. Governments and international financial institutions have scrambled to put together a solution within exceedingly tight political and economic constraints. Many questions have yet to be answered about the design; implementation will be at least as challenging. Euro-zone leaders must now aim to preserve not only the single currency, but also the gains from financial integration in Europe. No region of the world has benefited more from cross-border banking, yet these achievements are now at risk – and with them the European bank groups themselves.
Supporting subsidiaries The threat to cross-border banks comes not only from their deteriorating balance sheets in the face of lower sovereign-debt quality and weaker growth prospects, but also from the policy response itself. The fact that Europe’s banks need massive amounts of new capital is by now generally accepted. Yet despite valiant attempts by the new European Banking Authority to mandate and coordinate the measures that are needed, a European solution must take account
of the network of foreign subsidiaries across Europe. Mobilizing support for European banks will be hard; extending it to subsidiaries will be even harder. But, unlike the ill-advised exposure to sovereign debt across Europe, cross-border banking through foreign subsidiaries has been beneficial for investors, and for home and host countries alike – nowhere more so than in emerging Central and Eastern Europe, still the most important export market for the euro zone. For core euro-zone banks, this has been a region of extraordinary returns, and it is now integral to their operations. In emerging Europe, foreign subsidiaries have helped to build financial systems that are less prone to instability, and have helped economies to converge more rapidly with average European income levels.
Rewards, and risks When the global crisis erupted in 2008, there was no regulatory framework to protect the cross-border networks, and large vulnerabilities, in the form of excessive leverage and foreign exchange, were exposed. Much has been achieved since then: balance sheets have been strengthened and funding models adjusted. Along with institutional reforms at
the European level – particularly the creation of the European Systemic Risk Board and the European Banking Authority – regulation and supervision have been reinforced in subsidiaries’ host countries. Some of this might make finance more costly, but it will also make banking operations less risky. On balance, this is a good thing. Even so, the threat to financial stability is possibly even graver today than it was in 2008, as the capacity of Western European governments to backstop banking systems is clearly reaching its limits. Allowing foreign banks’ subsidiaries to become orphaned amid a worsening crisis in home countries would undermine confidence in emerging Europe’s financial systems, which could trigger assetprice declines and precipitous contractions in credit. Ultimately, this would boomerang back on Western European banks, given their deep financial and real linkages with the region.
New pact needed In 2008, such a catastrophic scenario was narrowly avoided, owing to policy intervention, including the coordination effort under the so-called Vienna Initiative (in which the European Bank for Reconstruction and Development, among others, was
involved). A new pact to secure the achievements of financial integration is now urgently needed. Authorities from these banks’ home and host countries must sit down together. As with the Vienna Initiative, a “Vienna 2.0” would require commitments by all concerned parties. In responding to the higher capital requirements imposed by authorities, and choosing whether to raise more capital or sell off assets, the banks must take into account the important role that their subsidiaries play in many countries. For many banks, this happens naturally – their subsidiaries, as important value creators, are critical to their business models. For some, however, the subsidiaries are smaller relative to the parents’ size – and thus less central to their strategies. Home countries must also contribute. Within the euro zone, any recapitalization, guarantees, and other funds offered to parent banks should be made available to subsidiaries in equal measure. Any restructuring requested in return for capital support should take into account the cross-border nature of the groups and not discriminate against subsidiaries abroad. Subsidiaries’ host countries, for their part, must reassure parent banks that financial regulation will
remain predictable. Some of the recent abrupt – and at times overly ambitious – measures to tax the industry or redistribute the burden of foreign-currency loans have undermined capital cushions and set back recovery in credit and growth.
Keep it coordinated All of this requires coordination. The European Banking Authority has a chance to establish itself. It must ensure that national interests do not undermine the integrity of the crossborder bank groups. Ultimately, we need a Europe-wide deposit insurance and bank-resolution authority that can take over and restructure failed banks. Just as the euro zone has fostered financial development and economic growth among its members, the current crisis now risks inflicting severe collateral damage far beyond its borders. Any sustainable solution to the crisis must ensure the integrity of the bank groups and respect the interests of these banks’ home and host countries. Ultimately, it is cross-border banking that is in the balance. ● Erik Berglof is chief economist at the European Bank of Reconstruction and Development Copyright: Project Syndicate, 2011.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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KGHM stock buyback? Polish copper miner KGHM announced last week that it could initiate a z∏.3 billion buyback of its own shares because its management considers the firm’s stock price to be undervalued. Local media are reporting that this would be the biggest buyback in the history of the Warsaw Stock Exchange.
Graduates’ job struggle The Polish economy is not able to accommodate the increasing number of university graduates entering the job market, Dziennik Gazeta Prawna reported, citing comments from experts. In the academic year 2009/2010, over 205,000 students finished vocational and technical high schools and close to 479,000 young people graduated with a degree, data from the Central Statistical Office (GUS) shows. But experts say the number of graduatelevel jobs on offer in Poland is not sufficient to meet the demand of the large number of qualified young people. ●
NOVEMBER 21-27, 2011
Computer games
Polish game producers winning on the world stage Mark Ordon Titles such as “The Witcher” have helped make Polish computer game developers a major global force A zombie, a sniper, a space pirate and the Witcher. Although they could easily be characters in the latest Hollywood blockbuster, fans of the video game scene will know they are actually major characters in some of the most popular, and Polish-produced, roleplaying games (RPG) in the world. Companies CD Projekt Red, Techland and City Interactive, who have introduced these characters into their games, all originate from Poland and can all count themselves among some of the video game industry’s most innovative and important players. According to a PwC report on the outlook for media through 2015, the global gaming industry is predicted to
COURTESY OF ELECTRONIC ARTS
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“Bulletstorm “ grow by 10 percent this year, making it worth at least $64 billion. The Polish market is still relatively small, valued at between z∏.400 million and z∏.500 million, depending on
the source and calculation method. However, Polish game developers have still been successful in making a name for themselves on the international scene.
Game development The top game developer in Poland, at least in terms of volume and revenues, is CD Projekt Red. The company began in 1994 as CD Projekt, and
mainly imported video games, most of which were sourced from the US. In May of 1999, CD Projekt made its first major breakthrough when it translated and published roleplaying game “Baldur’s Gate,” selling over 100,000 copies in the process. In 2002, CD Projekt launched a new unit, CD Projekt Red Studio, which specializes in game development. Its most successful release to date is “The Witcher,” a game based on the novels of Polish author Andrzej Sapkowski. The Witcher made its debut in 2007 and has since sold nearly two million copies. Even more impressive is “The Witcher 2” series, which since its release in May of this year has sold one million copies, 24 percent more than its predecessor sold in the same period of time. In 2009, the CD Projekt group merged with Optimus, a long-time manufacturer of PC software and hardware. The consolidation was final-
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3 million
Ratings game
the number of games sold as part of “The Witcher” franchise
markets. The planned release date for the new role-playing game is set for some time in 2013.
referring specifically to the company’s successful Painkiller game as evidence.
Future developments
“The Witcher 2” (concept art) nated by games such as “The Witcher” and “Dead Island.” City Interactive has signed a letter of intent with German game developer DECK13 Interactive to jointly develop the new game, CEO Marek Tymiƒski confirmed via his company’s press office. He said that the game’s production will be one of the largest investments ever made by the company. It is planned to be a multi-platform game, meaning it will be available on all major gaming platforms (Xbox 360, Sony PlayStation and PC). The company plans to focus its sales efforts most strongly in North American
ized this past summer, when Optimus officially changed its name to CD Projekt Red. As confirmed by CEO Adam Kiciƒski, the new name reflects a shift in the focus of the company from game distribution to game production. This focus is stressed in the group’s recently published three-year strategy. The main goal is to sell the 10 millionth CD Projekt-produced game by 2015. The focus seems logical, considering out of the z∏.26 million in profit generated during the first three quarters of this year, z∏.19 million came from the game-production division.
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Large initial investment Creating a successful game requires a high level of first-up investment, both in terms of time and money. Development of the first version of “The Witcher” started in 2002 but the official release didn’t take place until 2007. “Bulletstorm,” produced by another Polish studio, People Can Fly, took nearly four years to develop, consuming nearly $20 million, company CEO Adrian Chmielarz said in an interview with Gazeta Wyborcza. He added that this was more than the amount that was spent on the most expensive Polish film production, “Quo Vadis,” which cost an estimated $18 million to produce. Although he did not present any official sales forecasts, Mr Chmielarz did express his hope that the game, released earlier in 2011, could sell two million units in its first year. This large-scale investment was made possible thanks to the company’s major shareholder – Epic Games, which, along with publishing giant Electronic Arts, invested in the project. Mr Chmielarz said that Epic invested in People Can Fly because it was convinced that the company was not a mere one-hit wonder,
Those involved in the PC games market in Poland are generally optimistic about the sector’s future. Not only is the international market, where Polish companies have been so successful, expected to grow, but the domestic market is also set to expand. According to data reported by Polish daily Dziennik Gazeta Prawna, the market for games in Poland will grow by 15-20 percent annually thanks to an increased number of players over the age of 25. Unofficial data shows that the 25-50 age demographic now makes up half of the total customer base. The maximum age of consumers has even been pushing 60 in recent years. People Can Fly’s Adrian Chmielarz said that producing games for an adult market makes good business sense. A teenager may buy one game, whereas a working adult will purchase a few games, along with numerous accessories, often costing as much as the game itself. And with ambitious plans, high investment and a target audience willing to spend money, it seems that the gaming industry will continue to be one of the business world’s major success stories. ●
No less impressive, though, is Techland. Although smaller in size than CD Projekt, the company can boast the most dynamic first-up sales of any firm in the Polish gaming sector. According to the company’s press office, the latest release – a game called “Dead Island” – sold one million copies in its first month alone. Almost immediately after its release, it made the top-10 weekly sales ranking of gaming distribution and multi-play platform Steam. City Interactive is another ambitious player in the gaming market. Although it has so far specialized in first-person shooter (FPS) games, the company plans to enter the RPG sector, currently domi-
COURTESY OF DEEPSILVER
Competitive market
“Dead Island”
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Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl While video games may be a relatively new phenomenon, the industry has had to address the same age-old concerns about decency as other entertainment genres. It only took 12 years from Pac-Man (1980) to Mortal Kombat (1992) for complaints of excessive violence to be raised. To put things in perspective, Hollywood’s Motion Picture Production Code was adopted in 1930, a mere 20 years after the first movie was made in Hollywood.
Regulation Taking its cue from the movies, the video-game industry chose self-regulation over attempts at legislating decency standards. Some of the early skirmishes took place in the United States. In 1994, the US Congress considered a bill entitled the Video Game Rating Act of 1994, which would have created a federal commission for the rating of computer and video games. The gaming industry quickly worked out a compromise. The bill was scrapped, and a self-regulatory body, now known as the Entertainment Software Rating Board (ESRB), was established in that same year. Europe’s equivalent rating system is the Pan European Game Information (PEGI), which was launched in 2003. The PEGI system replaced a number of existing national European rating systems. Currently, it boasts use in 30 countries, including in Poland, most other countries in Europe and also Israel. Moreover, PEGI’s website claims “enthusiastic support” from the European Commission for this industry effort at EU harmonization. Both the ESRB and PEGI are voluntary, industry rating systems. Both are keen, however, to point out that all of the major video and computer game producers and retailers adhere to the rules of the systems. While I have not attempted to confirm its veracity, PEGI claims that it would be hard to find a computer or
video game in Europe without a PEGI rating.
Structure The PEGI ratings are based upon suggestions as to appropriate age levels. They do not attempt to review whether a game is good or rate its difficulty. They do provide additional descriptions about the particular moral hazards that could be encountered in the game. PEGI’s age categories are divided into 3, 7, 12, 16, and 18. PEGI 3 means that everyone can play. In this category, some cartoon violence is allowed, but otherwise it needs to be family-friendly. Not until a PEGI 16 rating can tobacco, drugs or criminal activity be depicted. PEGI 18 is applied to games where the level of violence could create a “sense of revulsion” in the viewer. In other words, it’s gross. In addition to the age ratings, PEGI also considers the potentially inappropriate elements in a game. The packaging of a game should include a warning about why the game received a particular age-level rating. The warnings include violence, bad language, fear, drugs, sex, discrimination and gambling. The ESRB uses slightly different age categories and a more extensive list of potential warnings, but the overall concept is similar.
No censorship The key in the ratings system is to provide appropriate consumer warnings, but to avoid censorship. Again, the gaming industry took its cue from Hollywood. The introduction of a seal of approval requirement from the ratings board in 1934 effectively introduced censorship, albeit self-inflicted. Regardless, some movie icons, became victims of the new morality. Changes in attitudes and box office successes of nonapproved films lead to the eventual demise of censorship. Warnings, but not censorship, ultimately made good business sense. ●
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Sustainable solutions are finding their way into the Polish retail market, but slowly
Poland came across as a bright spot at last week’s MAPIC property fair in France
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LOKALE IMMOBILIA
W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t
Investment fund and developer NFI Octava has pulled out of the project to build Magnolia Park, a shopping mall in Wa∏brzych, southwest Poland. The developer was set to construct the mall through a subsidiary, Galeria 7. “Considering current market circumstances, and assuming that an attractive opportunity to develop this area does not arrive, the Fund has decided to look for new investors interested in purchasing this real estate or company,” NFI Octava wrote in a statement.
Skanska acquires Praga Po∏udnie land Skanska Property Poland has acquired perpetual usufruct rights to 69,000 sqm of land on ul. Ostrobramska in Warsaw’s Praga Po∏udnie district from Polish Investments Real Estate Holding (PIREH). The value of the transaction amounted to z∏.110 million.The deal offers the possibility to execute a multi-phased housing project comprising a total of over 98,000 sqm of space. “It is our first project of this kind and it will surely be the flagship of our activity in Poland,” Micha∏ Melaniuk, vice president of Skanska Residential Development Poland, said in a statement. ●
In this issue Europa Centralna contractor .15 Griffin and Immobel buy land .15 PKP sells Warsaw plots . . . . . .15 Green malls . . . . . . . . . . . . . . . . .16 MAPIC 2011 . . . . . . . . . . . . . . . . .17 Property-related stocks . . . . . .17 Home renting market . . . . . . . .18 Apartments on Groupon . . . . .18
NOVEMBER 21-27, 2011, LI 16/46
Retail parks
Polimex-Mostostal to construct Europa Centralna for z∏.182 million The contractor has until October 2012 to complete the project Polish engineering and construction company PolimexMostostal has signed a z∏.181.6 million contract with developer Helical Poland to build Europa Centralna, a retail park in Gliwice, southern Poland. Construction work on the first stage of the two-stage investment began in June, with Spec-Bruk preparing the 27hectare site for construction. Polimex-Mostostal now has until October 15, 2012 to complete the project, the firm wrote in a statement. The first stage will comprise a 28,000-sqm shopping mall and a 38,000-sqm retail park, making it one of the biggest integrated retail centers in Europe. The shopping mall will be
COURTESY OF BIURO BUDOWY C.H. EUROPA CENTRALNA
NFI Octava quits Magnolia Park scheme
•
Europa Centralna will be one of the biggest integrated retail centers in Europe anchored by a 10,800 sqm Tesco hypermarket, and the retail park by a 9,500 sqm Castorama DIY store. Other brands which have already pre-let space include Media Expert, Super-Pharm,
Smyk, Reserved, H&M, Kappahl, Cubus, Lindex, Empik, CCC and Wojas. Gerald Kaye, development director at Helical Bar, the owner of Helical Poland, said in a statement that “the Polish
Land transactions
Griffin Group and Immobel acquire seven investment plots in Poland The locations can house a total of 150,000 sqm of space and include a prime Warsaw location In what has been one of the largest land transactions in Poland this year, Griffin Group and Immobel acquired seven investment plots across the country earlier this month from press distributor Ruch. The exact value of the deal has not been disclosed, but a Griffin representative revealed that the transaction was worth “hundreds of millions of z∏oty.” The acquired land has the potential to house a total of 150,000 sqm of office, retail
and residential space. Five of the plots are located in Warsaw (on ul. Wronia/Prosta, ul. Jana Kazimierza, ul. Kierbedzia, Al. Krakowska and ul. Duracza) while the remaining two are in Kraków (on Al. Pokoju) and Gdaƒsk (on ul. Kopernika). “The acquisition of the properties will enable us to increase our presence in Poland, and particularly in Warsaw, where we are interested in the office real estate market,” stated Immobel Group CEO Gaetan Piret. He added that thanks to the transaction Immobel had not only acquired plots, but also an experienced partner with whom the firm would jointly
work on developing the portfolio. “We are especially proud of the acquisition of the plot at the intersection of ul. Wronia and ul. Prosta, which offers an exceptional opportunity for the development of office space in central Warsaw.” The plot in question is located just next to Warsaw’s Rondo Daszyƒskiego, where construction on a new subway line is currently underway. Several investors have earlier announced skyscraper projects in the neighborhood, with construction on Ghelamco Poland’s Warsaw Spire already underway near the land acquired by Griffin Group and Immobel. Adam Zdrodowski
market, despite concerns elsewhere in Europe, remains one of the stronger economies.” The Europa Centralna project is being co-developed by Helical Poland and Standard Life Investments.
Danny McHugh, head of continental European real estate at Standard Life Investments, said in a statement, “We are anticipating strong growth over the longer term given [Europa Centralna’s] location in this densely populated region of Southern Poland and unique position on the intersection of Poland’s two main primary highways [the A4 and the planned A1].” The second stage of the project is still subject to discussion, with plans to build a technology-office park on the site under consideration. Founded in 2005, Helical Poland is a subsidiary company of Helical Bar, a British property development and investment company. Helical Poland specializes in building large shopping malls and retail centers. Izabela Depczyk
HB Reavis Group buys PKP plots in downtown Warsaw Polcom Investment VI, part of the Luxembourg-based international development company HB Reavis Group, has won two tenders for the acquisition of Polish State Railways (PKP) plots in central Warsaw. The company has bought the properties, which are located on the capital’s ul. Chmielna and Al. Jana Paw∏a II, for a total of z∏.171 million. The tender procedure, which was organized and coordinated, on behalf of PKP, by Cushman & Wakefield, involved the sale of perpetual usufruct rights to (and owner-
ship rights to the buildings and improvements on) two plots totalling over 9,700 sqm and one plot sized at more than 7,400 sqm. The assets went for z∏.97 million and z∏.74 million respectively. The plots in question, which are located opposite Warsaw’s Z∏ote Tarasy shopping mall, are currently not included in a zoning plan. However, even before the tender procedure concerning their sale started, Warsaw City Hall signaled it would allow the construction of high-rise structures on the land. Adam Zdrodowski
Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription
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LOKALE IMMOBILIA – REAL ESTATE
NOVEMBER 21-27, 2011
Sustainable building
Retail sector slow to embrace green trend Warsaw already has several certified green office buildings, while most other major Polish cities count at least one. But although existing retail projects are being revitalized and new ones are being built at a healthy pace across Poland, sustainable schemes are almost nonexistent. According to Agnes Vorbrodt, CEO of the Polish Green Building Council (PLGBC), the low popularity of sustainable building among retail developers does not necessarily reflect a lack of awareness regarding sustainability, but rather a lack of market incentives. “The interest is there, but it’s not comparable to the office building sector. There is less push on retail developers to go green,” she says. Contrary to the United States, where according to Ms Vorbrodt government incentives are giving a real push to the sustainable building industry, in Poland there is no official encouragement to build green, regardless of the type of
project, something PLGBC criticizes. But office-space developers feel pressured by rivals who see certification as a competitive advantage, as well as by tenants, who want to work in a sustainable environment. Indeed, most global companies renting space in the country’s office schemes have corporate requirements for green projects. Commercial developers don’t have such clear-cut motivations. Retailers who rent space in commercial schemes don’t have control over utility costs, and thus rarely benefit from one of the main potential financial advantages of going green: energy cost savings.
Resistance to change Krzysztof Giemza, head of the shopping center department at Echo Investment, said that developers prefer to get office buildings certified because it makes them easier to sell. On the other hand, shopping centers change hands less frequently, making it less impera-
tive to make them attractive to potential buyers. According to Mr Giemza, retail schemes already implement some sustainable solutions to save on energy costs, but they generally don’t bother to obtain certification. Categorizing retail schemes for certification purposes is also much more difficult to do than it is for office buildings, he pointed out. “I agree with green certification of retail schemes in principle, but their multiple purposes makes them difficult to categorize,” he added. Echo
Investment, which has certified green office schemes in Poland, is not looking to obtain certification for its retail assets, he said.
Green breakthrough? Some firms are trying their hand at getting certification nonetheless, such as developer Neinver, who has obtained a level of “good” in the BRE Environmental Assessment Method (BREEAM) certification for its Factory Warszawa Annopol and a level “very good” for its Futura Park
COURTESY OF CISZEWSKI FINANCIAL COMMUNICATIONS
Sustainable building is now an established feature in the Polish office sector, but very few retail schemes have obtained or even applied for green certification
Neinver’s Factory Warszawa Annopol has obtained BREEAM certification
Kraków. “We also plan to obtain certification for our other existing schemes in Warsaw, Wroc∏aw and Poznaƒ,” said Cezary Kopij, project manager at Neinver Polska. The only other listed retail project in the BREEAM database is UK-based developer Helical Bar’s Europa Centralna shopping center development in Gliwice, slated to open in fall 2012. But Agnieszka Mielcarz, director of the Forum Gliwice shopping center, said her firm has started investing in green features with a view to obtaining BREEAM certification in 2012. Others are rumored to be doing the same. While different types of certification systems coexist in the office sector, most European retailers seem to be choosing UK-based BREEAM which, according to Ms Vorbrodt, is faster and less demanding than US-based Leadership in Energy and Environmental Design (LEED). Much like in office buildings, sustainability in retail schemes means in large part lowering energy consumption through better insulation, structure design, heating and lower water consumption,
among other things. Although Mr Kopij would not reveal actual figures, he said he estimated the additional cost for green features, which will lead to a 55 to 65 percent lower energy consumption at Factory Warszawa Annopol, amounted to no more than 0.5 percent of the total building cost. But according to Ms Vorbrodt, who remains optimistic that the trend will pick up, change will come from foreign retailers rather than from developers. “The shift in mindset will probably start with companies who own their own international chains,” she says. This is how the American sustainable retail sector recently picked up, and it is now much better established than in Europe, said Ms Vorbrodt. “It started, for instance, with Home Depot and many of these retailers who own their own stores, and therefore get all the benefits of certification.” Ms Vorbrodt said she believes that at a certain point Polish shoppers will also start expecting commitment to sustainability from retailers, but not just yet. Alice Trudelle
LOKALE IMMOBILIA – REAL ESTATE
NOVEMBER 21-27, 2011
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Commercial real estate
Developing markets, Poland offer hope for sector Participants at MAPIC said the retail real estate market still offers plenty of opportunity, with Poland a particularly bright spot A significant increase in the number of visitors to the 2011 edition of the MAPIC commercial real estate trade fair, held last week in Cannes, France, suggests that the retail real estate market is still offering opportunities for investment. Around 80,000 people traveled to the fair, 10 percent more than last year. There was also a noticeable increase in investors’ participation, according to the organizers. “We take this as a confirmation that investment in commercial real estate is interesting and solid, more so than, for example, the office sector,” said My-Lan Cao, press director at MAPIC. Many transnational projects were on display, suggesting that players from developed countries where growth is sluggish are starting to invest in more dynamic, developing countries. Spain’s Neinver, for example, already well-established in France, Germany, Italy, Poland and Portugal, recently announced that it is expanding its activities to Brazil. The Polish presence at MAPIC was also up by about 10 percent on 2010, said Ms Cao, and all the developers Lokale Immobilia spoke to said they were observing increased activity in the Polish market and a larger number of investment deal negotiations.
Polish strength Indeed, while activity remains subdued in many other parts of Europe, Poland is expected to see completion levels increase considerably this year and next. About 550,000 sqm of new retail GLA is expected for full-year 2011, up from 360,000 sqm in 2010, according to commercial real estate adviser CBRE. Only Russia and Turkey are expected to have a larger amount of new retail space delivered within the next few years, according to Jones Lang LaSalle. According to industry players, the Polish market is now entering a new level of development and will not see a return to a pre-crisis state of affairs. The business model in Poland is getting more sophisticated, more mature, and more interesting, said Fabrice Paumelle, marketing and communications director at developer Mayland. “It’s not the biggest schemes with lowest rent that get it all anymore. Now we talk about the right mix of tenants, concepts,
catchment areas. ... It is an evolution, and either you control it, or it will control you,” he said. “Easy projects are finished,” said Krzysztof Giemza, head of the shopping center department at Echo Investment. Getting retailers in is much more difficult and costs are higher, he added. However, this is not a sign that the market is saturated, but rather that offers need to be more tailored than in the past, he said. Mayland’s Paumelle says his company focuses on tailoring projects, with “constant R&D research on each of the top 47 agglomerations in Poland.” The firm has seven “diverse” projects in the pipeline, he said, including developments from scratch and refurbishment projects located both in major and secondary cities.
“Poland achieved in 10 years what certain Western European countries have achieved in 40 years” Some are still trying to find their way in this evolving market. The Ogrody shopping center, scheduled for completion in 2014 in Elblàg, northern Poland, is experiencing difficulties with finding tenants. Joanna Klimaszewska, leasing manager at Acteeum Group, the developer behind the Ogrody mall, said that although this is the only planned shopping center in the area, many tenants, including leading international brands, are reluctant to join the project.
Polish trends One city to watch closely, according to Mayland’s Paumelle, will be Rzeszów. “Within 10 years, Rzeszów will be the new Kraków, the new Poznaƒ,” he said. The city boasts major investments in the aeronautic and biotechnology sectors, as well as proximity to Ukraine and Russia. Market players seem to be in agreement that the next stage for retail projects in Poland will be to house more specialized retail outlets, such as shops selling toys and children’s goods, niche food concepts, and interior design and gardening stores. One trend that seems to be getting off the ground is the development of multi-usage projects. One scheme, Nein-
ver’s Galeria Katowicka, combines the refurbishment of a Polish State Railways railway station and the construction of a new 52,000 sqm GLA shopping center in downtown Katowice. The project is one of the most complicated ever to be taken on in Poland. Although negotiations with PKP and with the city were difficult at times, the €240 million project is on schedule, with the renovated railway station due to open in June 2012 and the mall in Q2 2013, said Monika Olejnik-Okuniewska, marketing manager at Neinver Polska. She added that the firm is interested in other such niche projects, but declined to disclose further details. Refurbishing, remodeling and expanding existing schemes is also becoming the norm. Almost a quarter of all new retail space completed in Poland so far this year comprises extensions and next phases, according to CBRE. The biggest example completed during Q3 2011, was the expansion of Galeria Echo in Kielce, which increased its size from 26,000 sqm of leasable area to 70,000 sqm. This year the Ptak Trade Centre in ¸ódê, a wholesale retail center with 2,500 tenants, was touting a $600 million expansion plan that would see its size increase tenfold. The first part of this one-million sqm scheme, which will comprise 10 activity zones, including the biggest congress center and hotel complex in the CEE region, is due to open in the spring of 2012. The whole project will account for 70 to 80 percent of Ptak Holdings’ portfolio, said Tomasz Szypu∏a, a member of the board at Ptak Trade Centre. The outlet section is selffinanced, but investors from Arabic countries, the US and Asia, among them the “biggest investment funds in the world,” are behind the congress center and hotel, said Mr Szypu∏a. “A crisis is the best time to invest: everything is cheap because people are looking for jobs,” said Mr Szypu∏a. He estimated that the cost of the project is about 35-40 percent lower than it would be if the economy was in better shape.
The great Polish consumer The global economic outlook, and the outlook for Poland, may appear increasingly gloomy. However, nothing seems to stay the consumer appetites of Poles, said Anna Szmeja-Kroplewska, general manager of the Polish Council of Shopping Centres (PRCH). This, she said, is helping to
COURTESY OF REED MIDEM
Alice Trudelle
The 2011 edition of MAPIC saw a 10 percent y/y increase in the number of visitors increase shopping centers’ turnover. But some developers are banking on the hope that Poles will finally start to feel the pinch and look for cheaper alternatives. Neinver, for one, has been developing several new outlet centers under its Factory brand. Echo Investment’s Krzysz-
tof Giemza said the situation is somewhere in between the two extremes. “In the past 15 years Poland has been an Eldorado of sorts. The truth is, it’s not as easy as it was four years ago, but it’s not a very big crisis either. Poland is a very stable market,” he said. Mayland’s Fabrice Paumelle agreed. “Poland is a stable mar-
ket. It achieved in 10 years what certain Western European countries have achieved in 40 years, and has grown in a balanced way without overheating. “Poland is not an island, but it has a good position. What is certain is that today is not the end of anything: It is the passage of one age to another.” ●
Property-related stocks Security
Closing price on Nov 17
% change (week)
52-week low
52-week high
% change (year)
Total shares
Market value (z∏. mln)
BUDIMEX
76.25
1.67
64.00
109.20
-24.13
25,530,098
1,946.67
CELTIC
18.45
0.00
15.55
60.55
N/A
34,068,252
628.56
DOMDEV
36.00
8.76
23.50
50.80
-17.41
24,560,222
884.17
ECHO
3.39
-1.74
3.24
5.55
-35.92
420,000,000
1,423.80
ELBUDOWA
97.00
0.00
97.00
170.00
-42.60
4,747,608
460.52
ENERGOPLD
2.46
2.50
2.37
4.10
-33.15
70,972,001
174.59
ERBUD
19.00
1.06
14.70
61.00
-64.81
12,644,169
240.24
GANT
7.00
-1.13
7.00
17.91
-61.35
20,499,953
143.50
GTC
8.90
-6.81
8.70
24.98
-63.07
219,372,990
1,952.42
HBPOLSKA
0.91
0.00
0.70
3.20
-71.47
210,558,445
191.61
JWCONSTR
6.05
-14.18
6.05
17.45
-65.03
54,073,280
327.14
LCCORP
1.02
-5.56
0.85
1.69
-37.04
447,558,311
456.51
MARVIPOL
9.22
2.44
7.22
11.99
-24.36
36,923,400
340.43
MIRBUD
2.31
-4.15
2.25
4.75
-42.25
75,000,000
173.25
MOSTALWAR
22.99
-8.00
19.70
64.00
-63.71
20,000,000
459.80
MOSTALZAB
1.58
17.91
1.07
3.37
-52.12
149,130,538
235.63
ORCOGROUP
15.80
-5.39
15.70
40.00
-43.37
17,053,866
269.45
PBG
79.00
-11.24
56.05
223.00
-63.93
14,295,000
1,129.31
PLAZACNTR
2.16
-5.26
1.80
5.15
-54.53
297,174,515
641.90
POLAQUA
7.27
0.97
7.20
20.60
-57.49
27,500,100
199.93
POLIMEXMS
1.45
7.41
1.23
4.20
-66.28
521,154,076
755.67
POLNORD
15.73
2.81
11.03
35.89
-55.94
23,798,439
374.35
RANKPROGR
9.18
5.52
8.64
13.60
-14.76
37,145,050
340.99
ROBYG
1.19
-1.65
1.04
2.13
-38.97
257,390,000
306.29
RONSON
0.92
-3.16
0.92
1.58
-42.50
272,360,000
250.57
TRAKCJA
1.52
-7.32
1.39
4.67
-68.00
232,105,480
352.80
ULMA
61.35
-0.24
57.00
88.00
-26.96
5,255,632
322.43
UNIBEP
5.21
-6.80
4.47
10.30
-44.98
33,927,184
176.76
WARIMPEX
4.50
-13.96
4.50
10.89
-50.66
54,000,000
243.00
ZUE
7.80
-1.27
7.45
14.90
-46.58
22,000,000
171.60
18
LOKALE IMMOBILIA – REAL ESTATE
www.wbj.pl
NOVEMBER 21-27, 2011
Housing market
Is now the time to invest in rentals? Investing in homes for rent could be a profitable move in the current economic environment
Hard for developers If there is indeed potential in the home rental market in Poland, it is not likely to be exploited by developers who currently have thousands of completed and unsold apartments in the country on their offers. “Developers are struggling to clear this stock. ‘Rent-tobuy’ programs are still a novelty in Poland, and developers are reluctant to go down the rental route, as they have no
SHUTTERSTOCK
Continued uncertainty surrounding the economic outlook in Europe is not helping to boost sentiment in Poland’s residential property market. With buyers likely to be less motivated to make purchase decisions, could renting offer another avenue of opportunity? The home rental market in Poland has to date been relatively weak. Eurostat data for 2009, for example, showed just 2.2 percent of Poles renting their homes at market prices. Could this trend change any time soon? “Theoretically, the moment when fewer people can afford to buy an apartment is a time of harvest for owners putting their homes up for rent,” said Bartosz Turek, an analyst at real estate consultancy Home Broker. However, Mr Turek added that the market in Poland couldn’t be characterized as such, with 2010 home sales having actually been close to record levels. Meanwhile, salaries have
tude shift away from the ownership model to the rental model so common in the West,” Mr Muturi said. He added that the situation offers some opportunities for those who want to invest in homes for rent. “If your objective is to build a portfolio of apartments with a view to rent, then this is a good moment to start. We now have a buyers’ market with many outstanding offers,” Mr Muturi said. According to Mr Muturi, investment in homes from any segment of the residential market will work in the long run if it is well thought through. However, at this particular moment, the lower end of the market seems to be the most robust.
Renting could be the key to making a profit in the current environment, some say been on the rise and the margins of z∏oty-denominated mortgages have recently hovered at moderate levels. Nevertheless, some experts maintain that change may already be taking place.
According to S∏awomir Muturi, founder of home renting company Mzuri and author of a guidebook for those who want to rent out homes, Poland may actually be shifting slowly towards a home
rental model. “It is indeed noticeable that many people are making the ‘rent’ rather than the ‘buy’ decision due to limited loan availability. This might be symptomatic of a wider atti-
competencies or resources to manage the rentals,” Mr Muturi said. Nor are there many external experts who could help developers out. “There are still very few residential property management companies in Poland that they could outsource the management to,” Mr Muturi said. Kajetan Michalski, a rental advisor at Home Broker, pointed out that renting is not normal practice for developers. Adopting a new business model would require them to come up with a completely new marketing and sales strategy. Besides, most of the apartments that developers have on their offers are unfitted units. For the homes to be rented out, they would first have to be brought to a turnkey standard, which would generate additional costs. Moreover, Polish law tends to favor tenants over landlords, and Mr Michalski pointed out that while the government is planning amendments that would make renting a more attractive business, it has yet to start work on them. Adam Zdrodowski
Residential sales
Developers going to Groupon
Poland A.M. gives you the biggest Polish stories of the day. Have the most valuable news delivered to your inbox each weekday morning.
S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l
Two Warsaw-based residential developers, MT Development and Triton Development, have recently turned to deal-of-theday website Groupon.pl, a subsidiary of the eponymous US company, to sell and promote properties in the capital. Free of charge, companies can propose deals for products and services on Groupon. The offers can involve discounts from 50 to 90 percent. If the company sells to enough people or at a high enough price, it usually splits the gains with the website. If the firm fails to sell at the level it hoped for, then the deal is called off, clients are refunded and the company offering the deal still benefits from free advertising. Recently, MT Development and Triton Development have placed vouchers on Groupon.pl, offering huge discounts on real estate properties. The vouchers are bought at prices such as z∏.7,000, for example, and when redeemed with the developer, give the client
COURTESY OF TRITON DEVELOPMENT
DAILY EXECUTIVE DIGEST
A couple of residential developers have begun advertising their apartments at deep discounts on the group-buying website
Triton Development offered vouchers for discounts at its Triton Park development around 10 times that amount off the price of an apartment. The developers told Lokale that Grupon keeps the full proceeds from the sale of the vouchers. Triton Development recently offered vouchers via Groupon for discounts on several apartments in Triton Park, a residential area located in Warsaw’s Ochota district. One of the units listed, which was originally priced at z∏.1,138,375, was made available to a client for z∏.918,375 after redeeming a z∏.22,000 Groupon voucher. Some experts say that using the e-commerce platform could prove advantageous for devel-
opers, because it offers them the chance to reach out to younger clients. “Groupon is new in the market and in the residential market. It is used by younger buyers who are also the most active buyers,” said Karol Dzi´cio∏, associate director at Reas, a real estate advisory. Warsaw has the largest supply of residential property in the country and as a result, Mr Dzi´cio∏ said, “competition in the local market is tough, and developers are searching for different sales channels to get clients.” Ella Pa∏ka
MARKETS
NOVEMBER 21-27, 2011
www.wbj.pl
Stocks report
world stock indices DJIA
NASDAQ
11,770.73 (Nov 17 close)
S&P500
2,587.99 (Nov 17 close)
-1.03% (for the week)
FTSE100
1,216.13 (Nov 17 close)
-1.42% (for the week)
DAX
5,423.10 (Nov 17 close)
-1.90% (for the week)
-0.40% (for the week)
All eyes on yields
NIKKEI225 5,850.17 (Nov 17 close)
8,479.63 (Nov 17 close)
-0.30% (for the week)
-0.25% (for the week)
CHANGE: 1.67%
CHANGE: -3.31%
CHANGE: -3.30%
CHANGE: -8.08%
CHANGE: -16.11%
CHANGE: -18.09%
(year to Nov 17)
(year to Nov 17)
(year to Nov 17)
(year to Nov 17)
(year to Nov 17)
(year to Nov 17)
52-week high: 12,928.50
52-week high: 2,887.75
52-week high: 1,370.58
52-week high: 6,105.80
52-week high: 7,600.41
52-week high: 10,891.60
52-week low: 10,362.30
52-week low: 2,298.89
52-week low: 1.074.77
52-week low: 4,791.00
52-week low: 4,965.80
52-week low: 8,227.63
Andrew Nawrocki, WBJ market analyst Last week proved to be another unnerving one for the markets, with stocks fluctuating over the five days of trading. With attention now shifting towards southern Europe, investors are increasingly monitoring the bond yields of Italian and Spanish debt to gauge investor sentiment. Hope grew throughout Europe early in the week with both Italy and Greece seeing new leadership, but indices were only momentarily propped higher. On Monday, the WIG saw its largest gain, closing 0.96 percent up. The very next day, investor sentiment turned negative as Italian and Spanish 10-year bond yields approached record levels. On the Warsaw Stock Exchange, banks were hardest hit, with Getin Bank shedding 4.4 percent and
Major indices WIG
39,797.19 (November 17 close)
WIG20
2,293.36 (November 17 close)
17.11
16.11
15.11
14.11
10.11
09.11
08.11
07.11
04.11
03.11
02.11
31.10
28.10
17.11
16.11
15.11
14.11
10.11
09.11
08.11
07.11
04.11
2,200
03.11
38,000
02.11
2,260
31.10
38,800
28.10
2,320
27.10
39,600
26.10
2,380
25.10
40,400
24.10
2,440
21.10
41,200
20.10
2,500
19.10
42,000
27.10
52-week low: 2,089.84
26.10
Change year to November 17: -16.75%
25.10
52-week low: 36,549.47
24.10
52-week high: 2,932.62
Change year to November 17: -16.48%
21.10
Change for the week: 0.21%
20.10
52-week high: 50,371.74
19.10
Change for the week: -0.14%
Top 5 ATLANTIS GRAAL MOSTALZAB CEDC ARTIC
Closing 0.55 6.63 1.58 11.36 7.18
% change (week) 52-week high 30.95 1.92 22.32 12.32 17.91 3.37 17.60 83.50 16.37 13.19
52-week low 0.35 4.88 0.99 9.27 3.65
Top 5 POLIMEXMS KGHM PGE LOTOS TAURONPE
Closing 1.45 167.00 19.68 28.93 5.38
% change (week) 7.41 6.37 4.13 3.58 2.67
52-week high 4.34 200.30 25.07 49.50 6.92
52-week low 1.19 115.40 15.98 22.32 4.65
Bottom 5 ABMSOLID WESTAISIC VARIANT FERRUM BOMI
Closing 1.69 4.98 1.77 8.11 3.35
% change (week) -37.41 -20.32 -19.91 -18.82 -18.69
52-week low 1.60 4.81 1.75 6.48 3.33
Bottom 5 PBG TVN GTC CYFRPOLSAT PKNORLEN
Closing 79.00 9.58 8.90 13.65 38.05
% change (week) -11.24 -10.47 -6.81 -4.55 -4.18
52-week high 226.90 18.53 25.19 17.69 58.85
52-week low 53.70 9.55 8.57 11.60 30.33
52-week high 20.37 12.20 5.26 16.20 9.38
sWIG80
New government, new reforms?
9,003.40 (November 17 close)
WIG-Banki
5,467.14 (November 17 close)
17.11
16.11
15.11
14.11
10.11
09.11
08.11
07.11
04.11
03.11
02.11
31.10
28.10
17.11
16.11
15.11
14.11
10.11
09.11
08.11
07.11
04.11
03.11
02.11
5,400
31.10
42.0
28.10
5,540 27.10
42.4
26.10
5,680
25.10
5,820
42.8
24.10
43.2
21.10
5,960
20.10
43.6
19.10
6,100
27.10
52-week low: 4,944.19
26.10
Change year to November 17: -21.47%
25.10
52-week low: 42.36
24.10
52-week high: 7,387.49
Change year to November 17: -32.96%
21.10
Change for the week: -1.65%
20.10
52-week high: 64.23
19.10
Change for the week: -2.88%
44.0
Adam Narczewski, X-Trade Brokers Dom Maklerski SA
17.11
16.11
15.11
14.11
10.11
09.11
08.11
07.11
04.11
52-week low: 8,483.22
03.11
31.10
28.10
27.10
26.10
17.11
16.11
15.11
14.11
10.11
09.11
08.11
42.51 (November 17 close)
52-week high: 12,932.00
SOURCE: WSE
NewConnect
07.11
04.11
8,800
03.11
2,200
02.11
8,900
31.10
2,240
28.10
9,000
27.10
2,280
26.10
9,100
25.10
2,320
24.10
9,200
21.10
2,360
20.10
9,300
19.10
2,400
25.10
Change year to November 17: -26.50%
24.10
52-week low: 2,086.64
21.10
Change year to November 17: -20.62%
20.10
Change for the week: -0.48%
19.10
52-week high: 2,987.72
02.11
2,228.85 (November 17 close)
Change for the week: -1.10%
Bank Handlowy losing 2.5 percent. The WIG fell half a percent. Wednesday brought temporary relief for markets, with the ECB intervening and purchasing Italian and Spanish bonds. Stocks rose, with most of Europe closing higher. Thursday saw stocks dive deeper into the red, after Spain and France saw their borrowing costs rise at bond auctions early in the day. Construction and financial shares again led the falls. Only energy and oil stocks finished positive; Lotos led that charge with a 1.3 percent rise. The markets continued their slide on Friday, especially after Prime Minister Tusk announced tax hikes on the exploitation of copper and silver. ●
Currency report
Other indices mWIG40
19
The debt crisis seems to be spreading across Europe, with credit premiums for countries like Belgium, France and Austria hitting dangerous levels. Obviously, Greece, Italy, and Spain remain in the spotlight and solving the problems of these countries is the priority for the EU. Risk aversion is high and is reflected in currency movements. The EUR/USD tumbled from $1.38 to a weekly low of $1.34, but the news on Friday that a proposal for the ECB lend to the IMF was gaining traction helped the main currency pair to rebound to over $1.35. As for the local market, Prime Minister Donald Tusk announced the makeup of the new government (with some surprising names in it) and on Friday
gave his government’s plans for the next four years. The speech was short but concrete. Prime Minister Tusk focused on the reforms the government will undertake and presented some of the cuts that are needed (including increasing the retirement age to 67, gradually till the year 2020 for men, and till 2040 for women). The plans should be well-received by ratings agencies, and the outlook for the Polish economy might soon change to positive. The z∏oty lost ground throughout the week due to turmoil on international markets, reaching z∏.4.45 against the euro and z∏.3.31 against the dollar, but regained momentum and finished at z∏.4.41 and z∏.3.25 respectively. ●
currency rates 4.1423
4.1818
4.2205
4.2398
4.2826
4.2654
10.11
14.11
15.11
16.11
17.11
18.11
0.1071
0.1060 18.11
4
SOURCE: NBP
PLN-100JPY
5
17.11
0.1059
0.1063 16.11
15.11
14.11
0.1052 10.11
3.5773
3.5812 18.11
0.10
0.1056
PLN-RUB
0.12
17.11
3.5639 16.11
3.5531 15.11
14.11
3.5519 10.11
5.1918
5.1820 18.11
3.5
3.5583
PLN-CHF
4.0
17.11
5.1475 16.11
5.1239
5.1615 15.11
5
10.11
5.1287
3.2718 18.11
3.2965 17.11
3.2621 16.11
3.2526 15.11
3.2132 14.11
3.0
10.11
3.2213
4.4283 18.11
17.11
16.11
15.11
14.11
10.11
4
PLN-GBP
6
14.11
PLN-USD
3.5
4.4387
4.4155
4.4064
4.3807
4.4022
PLN-EUR
5
20
THE LIST
www.wbj.pl
NOVEMBER 21-27, 2011
Business Guide
Regional & Municipal Authorities Listed alphabetically by voivodship
Name
The Voivode’s Office of DolnoÊlàskie Voivodship
The Marshall’s Office of DolnoÊlàskie Voivodship
Wroc∏aw City Hall
The Voivode’s Office of Kujawsko-Pomorskie Voivodship The Marshall’s Office of Kujawsko-Pomorskie Voivodship
Address Tel/Fax E-mail Web page
Pl. Powstaƒców Warszawy 1, 50-951 Wroc∏aw 71 340-6000 info@duw.pl www.duw.pl Wybrze˝e S∏owackiego 12-14, 50-411 Wroc∏aw 71 776-9000 umwd@dolnyslask.pl www.umwd.dolnyslask.pl ul. Nowy Targ 1/8, 50-141 Wroc∏aw 71 777-7777/71 777-8655 kum@um.wroc.pl www.wroclaw.pl ul. Jagielloƒska 3, 85-950 Bydgoszcz 52 349-7913/52 349-7294 pok@bydgodzcz.uw.gov.pl www.bygdoszcz.uw.gov.pl Pl. Teatralny 2, 87-100 Toruƒ 56 622-3131/56 621-8553 www.kujawsko-pomorskie.pl
ul. Jezuicka 1, 85-102 Bydgoszcz 52 585-8913/52 585-8623 urzad@um.bydgoszcz.pl www.bydgoszcz.pl ul. Spokojna 4, 20-914 Lublin 81 742-4308/81 742-4309 The Voivode’s Office of Lubelskie Voivodship poczta@lublin.uw.gov.pl www.lublin.uw.gov.pl ul. Spokojna 4, 20-074 Lublin 81 441-6600/81 441-6602 The Marshall’s Office of Lubelskie Voivodship info@lubelskie.pl www.lubelskie.pl Pl. Króla W∏adys∏awa ¸okietka 1, 20-109 Lublin 81 466-1000/81 466-1001 Lublin City Hall bom@lublin.eu www.um.lublin.pl ul. Jagielloƒczyka 8, 66-400 Gorzów Wielkopolski 95 711-5600 The Voivode’s Office of Lubuskie Voivodship urzad@luw.pl www.luw.pl ul. Podgórna 7, 65-057 Zielona Góra 68 456-5200 The Marshall’s Office of Lubuskie Voivodship kancelaria.ogolna@lubuskie.pl www.lubuskie.pl ul. Sikorskiego 3-4, 66-400 Gorzów Wielkopolski 735-5500/95 735-5670 Gorzów Wielkopolski City Hall 95 um@um.gorzow.pl www.gorzow.pl ul. Piotrkowska 104, 90-926 ¸ódê The Voivode’s Office of ¸ódzkie 42 664-1000 Voivodship sekretariat@lodz.uw.gov.pl lodz.uw.gov.pl Al. Pi∏sudskiego 8, 90-051 ¸ódê 42 663-3000/42 663-3002 The Marshall’s Office of ¸ódzkie Voivodship info@lodzkie.pl www.lodzkie.pl ul. Piotrkowska 104, 90-926 ¸ódê 42 638-4000/42 638-4004 ¸ódê City Hall uml@uml.lodz.pl www.uml.lodz.pl ul. Basztowa 22, 31-156 Kraków 12 392-1200/12 392-1438 The Voivode’s Office of Ma∏opolskie Voivodship urzad@malopolska.uw.gov.pl www.malopolska.uw.gov.pl ul. Rac∏awicka 56, 30-017 Kraków 12 630-3107/12 630-3126 The Marshall’s Office of Ma∏opolskie Voivodship urzad@malopolska.mw.gov.pl www.malopolskie.pl Pl. Wszystkich Âwi´tych 3-4, 31-004 Kraków 12 616-1200/12 616-1721 Kraków City Hall umk@um.krakow.pl www.krakow.pl Pl. Bankowy 3/5, 00-950 Warsaw 22 695-6995/22 695-6687 The Voivode’s Office of Mazowieckie Voivodship info@mazowieckie.pl www.mazowsze.uw.gov.pl ul. Jagielloƒska 26, 03-719 Warsaw 22 597-9100/22 597-9290 The Marshall’s Office of Mazowieckie Voivodship urzad_marszalkowski@mazovia.pl www.mazovia.pl Pl. Bankowy 3/5, 00-950 Warsaw 800-707-047 Warsaw City Hall gabinet.prezydenta@warszawa.um.gov.pl www.um.warszawa.pl ul. Piastowska 14 , 45-082 Opole 77 452-4125/77 452-4478 The Voivode’s Office of Opolskie Voivodship bok@opole.uw.gov.pl www.opole.uw.gov.pl ul. Piastowska 14, 45-082 Opole 77 541-6510/77 541-6512 The Marshall’s Office of Opolskie Voivodship umwo@umwo.opole.pl www.umwo.opole.pl Rynek-Ratusz, 45-015 Opole 77 451-1800/77 541-1322 Opole City Hall urzad@um.opole.pl www.opole.pl Bydgoszcz City Hall
Notes: Research for The List was done in November 2011. Footnotes: (1) Vice-Voivode.
Top Executive
Name
Aleksander Marek Skorupa
The Voivode’s Office of Podkarpackie Voivodship
Marek ¸apiƒski
The Marshall’s Office of Podkarpackie Voivodship
Rafa∏ Dutkiewicz
Rzeszów City Hall
Ewa Mes
The Voivode’s Office of Podlaskie Voivodship
Piotr Ca∏becki
The Marshall’s Office of Podlaskie Voivodship
Konstanty Dombrowicz
Bia∏ystok City Hall
Henryka Strojnowska (1)
The Voivode’s Office of Pomorskie Voivodship
Krzysztof Hetman
The Marshall’s Office of Pomorskie Voivodship
Adam Wasilewski
Gdaƒsk City Hall
www.bookoflists.pl Address Tel/Fax E-mail Web page
ul. Grunwaldzka 15, 35-959 Rzeszów 17 867-1000/17 867-1950 bok@rzeszow.uw.gov.pl www.uw.rzeszow.pl Al. ¸ukasza Ciepliƒskiego 4, 35-010 Rzeszów 17 850-1700/17 850-1701 urzad@podkarpackie.pl www.si.podkarpackie.pl Rynek 1, 35-064 Rzeszów 17 875-4100/17 875-4105 umrz@erzeszow.pl www.rzeszow.pl ul. Mickiewicza 3, 15-213 Bia∏ystok 85 743-9315/85 743-9231 wojewoda@bialystok.uw.gov.pl www.bialystok.uw.gov.pl ul. Kard. Stefana Wyszyƒskiego 1, 15-888 Bia∏ystok 85 749-7549/85 749-7567 kancelaria@umwp-podlasie.pl www.wrotapodlasia.pl ul. S∏onimska 1, 15-950 Bia∏ystok 85 869-6000/85 869-6666 prezydent@um.bialystok.pl www.bialystok.pl ul. Okopowa 21/27, 80-810 Gdaƒsk 58 307-7695 zok@gdansk.uw.gov.pl www.uw.gda.pl ul. Okopowa 21/27, 80-810 Gdaƒsk 58 326-1555/58 326-1556 marszalek@pomorskie.eu www.pomorskie.eu ul. Nowe Ogrody 8/12, 80-803 Gdaƒsk 58 323-6000/58 302-3941 umg@gdansk.gda.pl www.gdansk.pl
Helena Hatka
ul. Jagielloƒska 25, 40-032 Katowice The Voivode’s Office of Âlàskie 32 207-7777 Voivodship www.katowice.uw.gov.pl
El˝bieta Polak
The Marshall’s Office of Âlàskie Voivodship
Tadeusz J´drzejczak
Katowice City Hall
Jolanta Che∏miƒska
The Voivode’s Office of Âwi´tokrzyskie Voivodship
Witold St´pieƒ
The Marshall’s Office of Âwi´tokrzyskie Voivodship
Tomasz Sadzyƒski
Kielce City Hall
Stanis∏aw Kracik
The Marshall’s Office of Warmiƒsko-Mazurskie Voivodship
Marek Sowa
The Voivode’s Office of Warmiƒsko-Mazurskie Voivodship
Jacek Majchrowski
Olsztyn City Hall
Jacek Koz∏owski
The Voivode’s Office of Wielkopolskie Voivodship
Adam Struzik
The Marshall’s Office of Wielkopolskie Voivodship
Hanna Gronkiewicz-Waltz
Ryszard Wilczyƒski
Józef Sebesta
Ryszard Zembaczyƒski
Poznaƒ City Hall
The Voivode’s Office of Zachodniopomorskie Voivodship
ul. Ligonia 46, 40-037 Katowice 32 207-8290/32 207-8291 marszal@slaskie.pl www.slaskie.pl ul. M∏yƒska 4, 40-098 Katowice 32 259-3909/32 253-7984 urzad_miasta@katowice.eu www.katowice.eu Al. IX Wieków Kielc 3, 25-516 Kielce 41 344-2956/41 344-2956 gwoj00@kielce.uw.gov.pl www.kielce.uw.gov.pl Al. IX Wieków Kielc 3, 25-516 Kielce 41 342-1878/41 344-5265 kancelaria@sejmik.kielce.pl www.sejmik.kielce.pl Rynek 1, 25-303 Kielce 41 367-6000/41 344-2763 coi@um.kielce.pl www.um.kielce.pl ul. Emilii Plater 1, 10-562 Olsztyn 89 521-9560/89 521-9569 wrota.warmia.mazury.pl Al. Pi∏sudskiego 7/9, 10-575 Olsztyn 89 523-2200 wojewoda@uw.olsztyn.pl www.uw.olsztyn.pl Pl. Jana Paw∏a II 1, 10-101 Olsztyn 89 527-3111 admin@olsztyn.eu www.olsztyn.eu Al. Niepodleg∏oÊci 16/18, 61-713 Poznaƒ 61 854-1071/61 852-7327 wuw@poznan.uw.gov.pl www.poznan.uw.gov.pl Al. Niepodleg∏oÊci 18, 61-713 Poznaƒ 61 854-1799/61 852-6007 info@umww.pl www.umww.pl Pl. Kolegiacki 17, 61-841 Poznaƒ 61 878-5200 prezydent@um.poznan.pl www.poznan.pl Wa∏y Chrobrego 4, 70-502 Szczecin 91 430-3500 www.szczecin.uw.gov.pl
ul. Korsarzy 34, 70-540 Szczecin 91 480-7247 The Marshall’s Office of Zachodnipomorskie Voivodship gabinet.marszal@wzp.pl www.wzp.pl Pl. Armii Krajowej 1, 70-456 Szczecin 800-300-300 Szczecin City Hall bp@um.szczecin.pl www.szczecin.pl
Top Executive
Andrzej Regu∏a (1)
Miros∏aw Karapyta
Tadeusz Ferenc
Maciej ˚ywno
Jaros∏aw Dworzaƒski
Tadeusz Truskolaski
Micha∏ Owczarczak (1)
Mieczys∏aw Struk
Pawe∏ Adamowicz
Zygmunt ¸ukaszczyk
Adam Matusiewicz
Piotr Uszok
Bo˝entyna Pa∏ka-Koruba
Adam Jarubas
Wojciech Lubawski
Jacek Protas
Marian Podziewski
Piotr Grzymowicz
Piotr Florek
Marek Woêniak
Ryszard Grobelny
Marcin Zydorowicz
Olgierd Gemblewicz
Piotr Krzystek
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.
NOVEMBER 21-27, 2011
www.wbj.pl
21
Your company in the virtual world of cloud computing If I took the challenge to never leave the house and organize my everyday life and entertainment needs solely over the internet, there is a very real possibility that I would miss nothing. In the private sphere, of course, we use the internet for numerous everyday activities. To buy goods on auction sites or online delicatessens when time does not allow for long and tiring shopping trips. The internet also offers unlimited entertainment options, from online rental of the latest movies through to the ability to organize holidays including the opportunity to view photos of possible locations, and to book airplane tickets and make hotel reservations. But in the sphere of business, is the virtual world just a marketing gimmick created by telecommunications operators or is it a cost-effective tool to develop business? Cloud computing defines the phenomenon of using virtual services without needing hardware, software or a license to perform an activity – merely a computer connected to the internet and access to resources. It does not only negate the need to build in-house solutions and thus lead to a better allocation of investment costs, but also the need for supporting resources and specialized staff, which leads to a reduction in total operating expenses.
Medium-sized businesses Let us examine, therefore, the sector of medium-sized companies that manufacture and sell their products in a specific market. Sales, marketing and customer services may not be directly involved in production, but are necessary to ensure high quality and ensure the the success of a company. Virtualization and the use of solutions based on the concept of cloud computing can increase performance of all these areas, leading to a reduction in costs and offering increased efficiency throughout the organization. Sales, marketing and customer services are primarily used to communicate with current or potential customers. In the past, companies focused on managing relationships with customers with extensive CRM systems (Customer Relationship Management).These solutions are effective for large organizations, but in the case of mediumsized businesses the cost of maintaining and especially developing theses systems far outweigh the benefits they provide. Often such systems are not fully developed and their functionality has to be complemented by supporting applications that in turn cause complications, lack of access to consistent data and a direct reduction of quality. Our Virtual Hosted CRM allows the supplier to use the tool without worrying about its maintenance, operation or further
programming activities. Thus, servers, databases, backup systems, data back-up, constant monitoring of the application and its development rests with the supplier. The organization merely uses a tool that is put it in use, and can instead focus on production.
Communication possibilities Communication is another essential part of business. Products and services available under the cloud computing umbrella are constantly evolving. Among the most popular tools are virtual IVRs (Interactive Voice Response), an interactive service allowing incoming connections, or virtual PABX (Private Automatic Branch called Exchange) which provides support for internal and external voice or virtual teleconferencing systems with optional video, allowing users to call three or more other users at the same time. These tools provide the flexibility to manage services via a web control panel, as well as offering access to reports showing utilization and the ability to easily share the cost between the individuals using the tool. The CMS (Content Management System) can also help to manage the content on web pages, as well as applications for the positioning of a web page or direct communication tools (such as e-mail) or
BROUGHT TO YOU BY CROWLEY DATA POLAND
other tools that are developed and hosted by a supplier. The boundary between outsourcing and virtualization is fairly smooth, but the main advantage of virtualization is that the issues related to the maintenance and development of tools used by employees of the organization can be delegated to the supplier. From the perspective of a telecom operator it ensures continuous, symmetrical high-speed internet connection with a guarantee of service (SLA). Today, the internet is not only a medium of communication but an element of advanced telecommunication networks, where there are products that until recently were associated only with large-scale investment, months-long testing and a tremendous amount of engagement in the company’s logistics processes. For the average company, it now means that in return for relatively little money, they have the ability to use advanced IT solutions previously available only to large corporations. Thus, smaller companies now have the opportunity to promote their business and provide customer services comparable to major corporations. � Dorota Patoka Product Group Director Crowley Data Poland
22
LIFESTYLE
www.wbj.pl
NOVEMBER 21-27, 2011
Holiday market
A festive feast
Concert
Music for the soul Jill Scott December 4, 6 pm PKiN Sala Kongresowa Pl. Defilad 1 Warsaw Three-time Grammy-award winning singer-songwriter Jill Scott is set to bring her unique neo-soul sound to the
capital, where she will perform hits including “He Hate Me,” “It’s Love,” and “Cross My Mind.” The Philadelphia-born singer is coming to Poland to promote her latest studio offering, “The light of the Sun.” The album debuted at
number one on the US Billboard 200 when it was released in June 2011, selling a remarkable 135,000 copies in its first week alone. Tickets for the event are priced from zl.100 – zl.300. ● For more information log on to kongresowa.pl
COURTESY OF JARMARK BO˚ONARODZENIOWY
The capital will once again host its famous Christmas Market this holiday season, with over 70 wooden stalls set to offer a wide variety of food, drink and traditional souvenirs from Austria, Germany, Lithuania, Poland and Slovakia. The market, held in Warsaw’s Old Town Market Square, offers numerous and tasty hot treats such as mulled wine, grilled Oscypek cheese, bigos and German bratwurst. It is also a great place to pick
up a few last-minute stockingstuffers with hand-crafted baubles and Christmasthemed Russian dolls on sale. The market, which is open
daily from midday to 8 pm, will also feature carol services and Christmas music, which is certain to get everyone in the holiday spirit. ●
Warsaw Christmas Market
Concert
The light fantastic Electric Light Orchestra November 26 PKiN Sala Kongresowa Pl. Defilad 1 Warsaw Legendary British group Electric Light Orchestra will be accompanied by a Polish symphony orchestra when they take to the stage in Warsaw to perform classic hits including “Evil Woman,” “Mr Blue Sky” and “Xanadu” this November. Formed in 1970, the band’s unique sound, which is based around pop, rock and orchestral music, has stood the test of time and continues to entertain fans across the globe. The group has so far
sold over 50 million records worldwide, while also accumulating 27 top 40 hits in the UK and US combined. Tick-
COURTESY OF WIKIMEDIA COMMONS
Jill Scott
COURTESY OF WIKIMEDIA COMMONS
Warsaw Christmas Market November 26-January 8, Old Town Market Square Warsaw
ets for the event are priced from z∏.70-z∏.300. ● For more information log on to kongresowa.pl
Electric Light Orchestra
Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl
Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl
Simonis Gallery ul. Burakowska 9 www.simonisgallery.com
Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl
State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl
Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl
State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl
Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl
Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl
Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl
Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl
Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl
Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl
LAST WORD
NOVEMBER 21-27, 2011
www.wbj.pl
23
Tech Eye
The future is electric, mostly pointless
COURTESY OF SUZUKI
COURTESY OF NISSAN
sessors won’t suffer too much on top – so maybe next year’s Pivo 4 will actually become a production cramping. Anyway, there aren’t a lot of model. To conclude this week, we presdetails available about the Qconcept, although it does ent a vehicle that looks even more look as though the steering like a prototype than the Q-concept wheel has a smart-phone- or Pivo 3, but is actually on the martype dock. Could this be a ket – the Xenon from Evolve Motorcycles (evolvemotorcycnext-gen key device? Another cool car debuting les.com). Designed to resemble the at the Tokyo Motor Show is light bikes from “Tron,” the Xenon Nissan’s Pivo 3 (nissan-glob- comprises 32-inch hub-less wheels, Nissan’s Pivo 3 al.com), which Techeye enjoys sim- OLED light tape and a hand-craftki.com). This looks like ply because its name sounds like ed fiberglass frame. It’s fully electric, with a 40,000something you’d see in the recent half a six-pack in Polish. An electric “Star Wars” films, the kind of vehi- vehicle, the Pivo 3 seats three peo- watt motor. The Xenon’s charge cle George Lucas would design and ple within its three-meter length time is three hours, max speed is everybody who saw it would say and is extremely agile in terms of 100 mph and it has a range of up to 100 miles. Unless you’re fat and “Wow, that’s amazing George” parking. No, you can’t buy one. But the enjoy driving fast, in which case its while silently questioning his sanity. However, Suzuki earns points for Pivo 3 looks more like a real car range is around 30 miles. Seriously. The Xenon costs $50,000 (plus creating a working vehicle and not than its predecessor, the Pivo 2 – just a CGI blueprint for ridiculously which resembles a go-kart with a tax, tags, freight and “prep”). It won’t be at the blister expensive toys. Tokyo Motor The Q-concept is a micro city Show, but car, with the emphasis firmly on don’t be micro. At just 2.5 meters long, this fooled – it’s two-seater (with the passenger sitstill a fanting behind the driver) is probably a tastic waste tight fit if both occupants have legs. of time and But it’s designed for short errands money. ● near home (ideally “within a radius of about 10 km”) so maybe leg-posThe Xenon, from Evolve Motorcycles COURTESY OF EVOLVE MOTORCYCLES
It’s renowned as the place to debut concept cars. And, as everyone knows, concept cars are the best waste of time and money in the world. You could look at this event as a dangerous exercise in irresponsibility. After all, the 2011 show will debut a herd of (automotive) white elephants, practically none of which will ever hit the market, right at a time when the global economy is being held together by duct tape and ignorance blind hope. But Techeye prefers to view it as an awesome exercise in irresponsibility. As one would expect, pretty much everything at the show will be electric- or hybrid-powered. Like the Q-concept from S u z u k i (suzuSuzuki’s Q-concept
Techeye has glimpsed the future and it is a desolate place. Cats armed with ray guns rule the Earth and humans may only communicate using phrases like “mew mew” and “lawl,” or else the laser kitties go “pew pew.” There are no robot girlfriends. Just kidding. We have indeed looked into the future, but only as far ahead as December 2, 2011, which is when the biennial Tokyo Motor Show kicks off, presumably without robot girlfriends. On the other hand this is Tokyo, so there’s always a glimmer of hope. Whatever the case, there are plenty of technological distractions on offer at the Tokyo Motor Show.
Ever suffered a thorough “pew pewing” from an irate kitty? Let us know: techeye.wbj@gmail.com
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