WBJ #48 2013

Ukraine dominates Polish politics Warsaw mulls over a new approach towards Kiev 4

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WWW.WBJ.PL

Xaver rips through Poland Hurricane-force winds wreak havoc across Europe

VOLUME 19, NUMBER 48 • DECEMBER 9-15, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Taking on Putin COURTESY OF ROTUNDA2013.PL

REAL ESTATE

• Retail market • Rotunda revamp • Polnord development 15-18

Petrochemical power-up Lotos and Azoty pen an initial deal for a z∏.12 billion investment 5

Plus: • IPO storm • EADS deal • Transparency index • Interest rates on hold • Best PMI figures since 2011

AP/FOTOLINK

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

What will be the consequences of the ongoing events in Ukraine for EU-Russia 12-13 relations?

Mourning Mandela

Pension shakeup

Poland joins others in bidding farewell to one of the 20th century’s greatest leaders

The government pushes through its controversial pension reform

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Cyprus Trade Center in Poland www.cyprustrade.pl

4

NEWS

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54.4 was Poland’s Manufacturing PMI in November, according to Markit Economics.

€5,879 is the per capita purchasing power in Poland, according to research firm GfK.

151 is how many Polish economists signed a letter of protest against the planned pension overhaul.

Quote of the Week General Wojciech Jaruzelski

Friday this week will mark the 32nd anniversary of the imposition of martial law in Poland by communist leader General Wojciech Jaruzelski.

It remained in force from December 13, 1981 to July 22, 1983, during which many opposition members, including the legendary Solidarity leader Lech Wa∏´sa, were arrested and as many as 100 people were killed by the military.

However, instead of uniting Poles, who after all ultimately chased the communist regime out of power, the event looks set to once again simply serve as a backdrop to the so-called “Polish-Polish war” being waged by Poland’s two largest

political parties, the ruling Civic Platform (PO) and the opposition Law and Justice (PiS).

PiS leader Jaros∏aw Kaczyƒski has announced that his party will organize a protest march on December 13 in order to draw attention to “social injustice” in modern-day Poland.

“In the center of what we want to focus on, what we want to show is the massive social injustice which we are witnessing in our country today,” said Mr Kaczyƒski, who also spoke of the need for a “patriotic message” to be sent to Poles on that day.

“If we want our nation to continue existing, to be a com-

munity, then it has to be a consolidated community, and the basis of that must be justice,” said Mr Kaczyƒski.

The PiS leader will no doubt use the occasion to deliver yet another of his fiery speeches bashing the ruling party and implying that it is, in fact, little better than an extension of the former communist party.

Meanwhile, PO politicians will likely once again remind Mr Kaczyƒski of the fact that while he is playing the hero today, he was in fact not interned during martial law as he was considered too insignificant a figure by the communist regime.

Remi Adekoya

“[Mr Mandela] will be remembered as a fighter for fundamental human rights … his contribution in building a better world was invaluable.”

Poland’s President Bronis∏aw Komorowski on Nelson Mandela, who passed away last Thursday at the age of 95.

Figures in focus On the right track Number of rail passengers in selected EU member states (in thousands, data for 2012) 3,000,000 2,500,000 *Highest in the EU **Lowest in the EU

2,000,000 1,500,000 1,000,000 500,000

ia hu an ia* * Lit

On WBJ.pl

ry

0

Source: Eurostat

UK immigration reform Stratfor looks at the recent proposals by British PM David Cameron to curb immigrant numbers from the CEE region, and wonders if it’s even possible, pointing out that this idea goes against a basic principle of the European Union. Log on to WBJ.pl to read the report.

Seventy bankruptcies in November In November, 70 Polish companies went bankrupt, according to a report by Euler Hermes Collections. Altogether these firms employed 1,800 people and had a total revenue of some z∏.600 million. Euler Hermes said that local or regional firms are more likely to go bankrupt, particularly SMEs. In November, only one of the companies that went bankrupt had revenue higher than z∏.100 million. The main reason for the companies’ poor financial standing was low domestic revenue. ●

was confirmed by Poland’s Central Statistics office as the country’s GDP growth figure for the third quarter of 2013 year-on-year.

Ro ma n

Google is planning on launching its own price comparison service in Poland. The service, called Google Shopping, will not be typical as it will point customers directly to the particular e-shop offering the specified product. The US firm wants to compete on the Polish e-commerce market, worth an estimated z∏.20 billion.

1.9%

ng a

Google to enter Polish e-commerce market

Anniversary of the imposition of martial law

Hu

Polish courier firm Siódemka has plans to list shares on the Warsaw Stock Exchange, sources familiar with the matter told Reuters. The company itself declined to comment. Siódemka is a company belonging to private equity fund Abris Capital Partners. In 2012, it had a net profit of z∏.15.5 million with revenue at z∏.305 million.

Numbers in the News

Sw Cz ed ec e hR n ep ub lic

Siódemka mulling IPO

IN THE SPOTLIGHT

Ne Italy the rla nd s Po la nd

Procter & Gamble, a multinational manufacturer of consumer goods, opened its European logistics and planning center in Warsaw, which will create approximately 500 jobs. The center will be responsible for the distribution chain in 100 countries, resource planning and distribution of ready-made products to recipients.

DECEMBER 9-15, 2013

Ge rm Un an ite d K y* ing do m

P&G opens European logistics center in Warsaw

COURTESY OF SOLIDARNOSC.GOV.PL

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Company index Alma Market..............................................17 Newag..........................................................6 Arkady Sobieskiego ..................................15 Noble Securities........................................19 AugustaWestland ........................................5 Avestus Real Estate ..................................18 Bank Gospodarki ˚ywnoÊciowej ................6 Bank Pekao ................................................6

Nordea ........................................................6 Pesa ............................................................8 PGE ............................................................19

BASF ............................................................5 PGNiG ........................................................19

Calendar

December 10-11 B2B SUMMIT Event:

Location: Web:

Top executives from some of the biggest Polish companies will discuss their strategies on how to attract and keep the most important clients and key accounts.

Hotel Courtyard by Marriott, Warsaw b2b-summit.com

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DEBATE ON EU BUGDET

Event:

Polish MEPs, economists and Polish officials will discuss the new 2014-2020 Multiannual Financial Framework. The main subject of the debate is whether the budget is good for Poland, but bad for the EU. The European Parliament Information Office, ul. Jasna 14/16a europarl.pl

Location:

Web:

BNP Paribas................................................6 PKN Orlen..................................................10 Bumar..........................................................8 PKO BP ..................................................6, 18 Commerzbank ..........................................12 EADS ............................................................5

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KPMG TAX AND ACCOUNTING CONGRESS

Eiffage Budownictwo Polska ....................18

Event:

Top KPMG experts will discuss changes in the tax law which will be introduced on January 1 as well as new accounting standards.

Hilton Hotel, Warsaw kpmg.com/pl/en

Energa ........................................................6

Location: Web:

Event:

Location:

Web:

Over 400 guests will discuss the regions’ energy future, making it the largest sector conference in Poland. Everything from coal to renewables will be examined.

Sheraton Hotel Sopot, Conference Center & Spa forum-ekonomiczne.pl/viii-forum-energetyczne-2013/

Polnord ......................................................15 Polpharma ..................................................8

Erbud ........................................................15 Polski Holding NieruchomoÊci ................17 Euler Hermes Collections ..........................2 Polskie Inwestycje Rozwojowe ..................5 Gazprom ....................................................13 Procter & Gamble ......................................2 GfK ..............................................................2 Google..........................................................2

16-18 ENERGY FORUM

PKP ............................................................15

Grupa Azoty ................................................5 HSBC ..........................................................7

PZU ..............................................................6 Rabobank ....................................................6 Santander ....................................................6

Jones Lang LaSalle ..................................17 Sikorsky ......................................................5 KD Kozikowski Design

Siódemka ....................................................2

Pracownia Architektoniczna ....................18 Synthos ........................................................8 KGHM ..........................................................8 KPMG ........................................................13 Lotos ............................................................5 Markit Economics ..................................2, 7

Tauron ........................................................19 Valkea Media ..............................................5 Warsaw Stock Exchange ............2, 6, 12, 19

Marvipol ....................................................15 WMC Consulting........................................17 mBank ................................................12, 19 X-Trade Brokers ........................................19

NEWS

DECEMBER 9-15, 2013

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Region

COURTESY OF FLICKR USER NESSA GNATOUSH

Ukraine stalemate tops political agenda

Hundreds of thousands of Ukrainians took to the streets of Kiev to protest their government’s failure to sign the Assocation Agreement with the EU

With people still protesting on the streets of Kiev over an abandoned plan to sign a free trade agreement with the EU, politicians in Poland and the EU mull the next step Following the failure of Ukrainian president Viktor Yanukovych to sign the Association Agreement with the EU at a summit in Vilnius, the people of Ukraine – hundreds of thousands of them – took to the streets of their capital to voice

their frustration, despite a citywide decree that has outlawed protests in Kiev until January 7.

The protests, dubbed the “Euromaidan,” are the biggest since the Orange Revolution in 2004.

The Vilnius summit was nevertheless hailed by the President of the European Council, Herman van Rompuy as a “historic victory.” Yes, the EU did initial agreements with Georgia and Moldova, but Ukraine – the jewel in the crown if indeed a political victory were to have been truly claimed – remained on the sidelines, with just a few

awkward pictures of Mr Yanukovych shaking hands with German Chancellor Angela Merkel coming down the wires.

Poland exporting solidarity Poland has always been proud of its historical legacy of toppling communism, and always seems keen to export its notions of solidarity.

On a freezing Sunday afternoon, two Polish politicians – Law and Justice (PiS) leader Jaros∏aw Kaczyƒski and Civic Platform (PO) MEP and Vice President of the European Par-

liament Jacek Protasiewicz – were shuttled in to Kiev to give the raucous crowd a morale booster.

Echoing his twin brother Lech, who as president went to support the Georgians in Tbilisi after Russia annexed part of the country’s territory in 2008, Jaros∏aw Kaczyƒski stood up in front of an enthused crowd and said “it is not just you who need Europe or the European Union, but it is Europe and the EU that need you.” For his part, Mr Protasiewicz gave Ukrainians the full support of the European Parliament.

The joint – and what seemed to be amicable – appearance of a leading PO politician and the leader of the opposition party is something that Polish voters may not have witnessed since the Smolensk tragedy in 2010 drove a deeper wedge between the country’s two largest parties. However, differences in opinion soon started to appear.

After the initial visit on December 1, a flurry of Polish MPs decided to jump on the bandwagon and make their way over to Kiev, including a number of PO members. In Kiev, the leader of the liberal pro-EU party Your Move, Janusz Palikot, even hinted that a change of prime minister in Ukraine may be on the cards.

But for all the talk in Ukraine between Poland’s

politicians and Ukrainian MPs and NGOs, not much could be done, as Mr Yanukovych skipped town for meetings in China to sign trade deals worth $8 billion, a far cry from Brussels’ relatively meager offer of €600 million, which Mr Yanukovych called “humiliating” before the Eastern Partnership summit in Vilnius.

Political unity short-lived Meanwhile, President Bronis∏aw Komorowski convened a security council meeting on Monday, December 2 to discuss what to do next with regards to Ukraine. Mr Kaczyƒski didn’t turn up, instead sending MEP Ryszard Czarnecki, although he was denied access to the meeting.

The PiS Deputy Leader, Adam Lipiƒski met the president on Thursday, but kept his lips sealed as to the details of the tête-à-tête. Mr Lipiƒski did give away the fact that there are differences between PiS’s and President Komorowski’s views of eastern foreign policy, however.

In an interview with Polish Radio at the end of last week, Tomasz Na∏´cz, a presidential advisor, rebuffed criticism from PiS, saying that Mr Komorowski has played an active part in the Ukrainian dialogue, while Mr Kaczyƒski has remained passive in his rhetoric.

“Mr Kaczyƒski did nothing

over the last few years, just a few blunders, including the very unfortunate suggestion of withdrawing ... Ukraine’s participation in the Euro 2012 soccer tournament,” Mr Na∏´cz said.

Ukraine still on European track?

Towards the end of last week, the Polish and Swedish heads of diplomacy, Rados∏aw Sikorski and Carl Bildt respectively, were in Kiev for the OSCE Ministerial Council.

As Poland and Sweden coinitiated the EU’s Eastern Partnership program, it seemed only logical that they would hold a joint meeting with Ukrainian PM Mykola Azarov.

“Ukraine has not and will not veer from its European path,” Mr Azarov said, as cited

by Messrs Sikorski and Bildt.

Mr Sikorski added that “We are offering Ukrainian authorities a chance to lessen the political cost of implementing reforms,” although he didn’t reveal any further details.

However, with the EUUkraine line being placed on hold, MEPs are now set to debate the very future of the Eastern Partnership, with a vote set for the European Parliament’s plenary session in Strasbourg this week. Maybe Mr Van Rompuy was too quick to hail a victory in Vilnius?

Obituary

Nelson Mandela has passed away at the age of 95 Former South African president Nelson Mandela died in Johannesburg on Thursday night at the age of 95. He had been struggling with a lung infection for several months.

Mr Mandela was the first black president of the African country, an office he held between 1994 and 1999.

Poland’s President Bronis∏aw Komorowski offered his condolences to the President of South Africa Jacob Zuma, saying that Mr Mandela “will be remembered as a fighter for fundamental human rights.” Mr

Komorowski said that Nelson Mandela’s “contribution in building a better world was invaluable.”

Speaking to journalists while in Ukraine, Poland’s Foreign Minister Rados∏aw Sikorski said that Nelson Mandela was “one of the titans of the 20th century.”

“Everyone who has fought for freedom, ... including us Poles, understand who this great man was for Africa and for the whole world,” Mr Sikorski added.

Mr Mandela began his political career in the 1940s. For his work as an anti-apartheid revolutionary he was sentenced in 1962 to five years in prison. Two years later, his sentence was

extended to life imprisonment.

Mr Mandela spent 27 years behind bars before he was released in 1990.

After his release he led negotiations with South Africa’s president at the time, F.W. de Klerk, which resulted in the abolition of apartheid.

Mr Mandela was elected president in the first multiracial elections in 1994. His government focused on dismantling apartheid by targeting institutionalized racism, poverty and inequality, as well fostering racial reconciliation.

For his extraordinary work he was awarded the Nobel Peace Prize in 1993.

Beata Socha

COURTESY OF WIKIMEDIA COMMONS

Poland mourns Mandela’s death

Mr Mandela was awarded the Nobel Peace Prize in 1993

John Beauchamp

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NEWS

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OFE

DECEMBER 9-15, 2013

Domestic

Pension reform Hurricane hits Poland approved by the Sejm

Poland’s lower house of parliament, the Sejm, has adopted the reform proposal that will see some 51.5 percent of assets held by private pension funds (OFEs) transferred to the state-run Social Insurance Institution (ZUS). The reform won 232 votes of support, while 216 MPs were against the change. Only one abstained.

The government’s proposal for the future of OFEs will see all the treasury bonds in their possession (51.5 percent of the entire value of their assets) transferred to ZUS. OFEs will

leader Jaros∏aw Kaczyƒski said in the Sejm last week.

Even though strongly critical of the current system, Mr Kaczyƒski’s party Law and Justice (PiS), along with other opposition groupings, voted against the changes proposed by the government. “Our amendments have not been accepted, … and we cannot accept the reform proposal without our amendments,” Zbigniew Kuêmiuk, a PiS member, told weekly Wprost.

Prime Minister Donald Tusk said his opponents “are only strong in words, but when it comes to taking action, [the ruling Civic Platform] is the only one left standing.” He also added that Mr Kaczyƒski and others “had plenty of opportunities to implement changes in the OFE system [when they were heading the

“entails taking away non-state property from legal entities and transferring it to a state organizational unit, and therefore is classic expropriation,” according to an opinion issued by the State Treasury’s legal advisors.

PM Tusk rebuffed these concerns simply stating that he is “confident” about the legality of the reform.

Then there is the threat that international funds which have invested in OFEs might demand compensation on the grounds of internationally binding agreements about protecting investments. That could result in hundreds of millions in damages, experts say.

COURTESY OF MACIEJ ÂMIAROWSKI/KPRM

Controversial changes in the pension scheme have been adopted, but concerns as to their legality and economic impact remain

Donald Tusk met with voivodes to discuss the situation

The strongest winds in years have ravaged Poland, causing fatalities and blackouts

Stock market dilemma And finally there is the stock market, which also might take it badly if the capital inflows it

COURTESY OF MYPIS.PL

As WBJ went to press, five people died and a number were injured as a result of the Hurricane-force Storm Xaver, which hit Poland last Friday. In northern Poland, a tree fell on a car killing three people. The fourth victim was a passenger on a bus which swerved off the road and hit a tree, while the fifth victim was swept off a balcony by high winds in Lower Silesia.

Jaros∏aw Kaczyƒski was against the reforms keep the remaining portion of their portfolio, roughly 48.5 percent, but will be restricted to investing them almost exclusively in the stock market.

Poland’s current pension system was created in 1999 and consists of two major components: the state-run ZUS and private OFEs which receive a portion of a person’s monthly pension contribution and invest it in various market instruments. The private component of the system has taken a lot of heat in the past few months, ever since the reform plans were first announced in the spring.

‘A scam’ Politicians from various factions have repeatedly called the entire system “a scam,” created for the sole purpose of “deceiving Poles with an illusion that they might expect higher pensions,” opposition

government] but not a single one of them did a thing to improve it.”

Mr Tusk repeatedly said the reform was a difficult choice, but one that had to be made. He also stressed that the proposed reform in OFE is “safe for the citizens and for the state.”

Still, not all Civic Platform (PO) politicians are so firm in the belief that the reform will bring nothing but peace and prosperity. One of the PM’s party colleagues admitted it was a lose-lose situation from the start. “Either we take half [from OFEs] and win the elections, or Kaczyƒski wins and takes it all,” the source said as reported by Newsweek.

Expropriation or not?

Opponents of the reform, mainly lawyers and economists, warn that transferring assets from OFEs to ZUS

now receives get halved. And this is likely to be the case, as the government is working under the assumption that Poles agree to all of their assets being turned over to ZUS, unless they provide a written declaration stating otherwise.

Not only will the stock exchange’s capitalization decrease, some even say collapse, but OFEs will have to start selling their stock portfolios to meet their financial obligations towards ZUS. This will inevitably bring stock prices down. On the day the reform was announced, the WSE saw a huge sell-off, during which the blue-chip WIG20 index lost 2.5 percent. Today OFEs hold stakes in over 200 companies worth some z∏.103 billion.

Altogether OFEs’ assets under management are valued at z∏.272 billion.

Beata Socha

The Polish Institute of Meteorology and Water Management forecast wind gusts on Friday of up to 110 km/h inland and up to 135 km/h off Poland’s Baltic coast, which makes the winds the strongest in years that hit Poland, classifying the storm as a hurricane.

The wind ripped through most of the country, downing electricity lines and leaving as many as 400,000 homes without power. Transport services were also affected, with many trains and ferries delayed or stopped, and flights canceled.

Firefighters had to intervene nearly 3,000 times.

After talking with voivodes,

Prime Minister Donald Tusk said that “the situation is difficult, but not dramatic,” adding that the biggest problems people faced were power outages.

He added that all emergency procedures and services were prepared for the hurricane and handled themselves perfectly.

Strong winds were expected to continue throughout last Saturday and not calm down until Sunday. Before hitting Poland, hurricane Xaver wreaked havoc in other European countries, killing two people in Britain and one in Denmark, Sweden and Austria.

Jacek Ciesnowski

Poland perceived as less corrupt This year Poland is perceived as less corrupt than it was in 2012, according to the Corruption Perceptions Index published last week by Transparency International. The country scored 60 points in 2013 and was ranked 38th out of 177 states surveyed by the organization.

In 2012 Poland’s score was 58 points which put the country at 41st spot. In the Corruption Perceptions Index, a score of zero represents a high perceived level of corruption, while 100 stands for a country perceived as transparent.

As the value of the index depends on the perception of corruption activities, it grows when a scandal is revealed to the public. Poland came 70th in 2005, its lowest rank in recent history.

That decline was largely attributed to falling public trust after the so-called Rywin Affair, a corruption scandal involving well-known movie producer Lew Rywin and his

attempt to influence legal changes. The investigation lasted several years and was widely reported in the Polish media.

In the CEE region, Poland has the second-best score, giving way to Estonia, which scored 68 points and was ranked 28th. Other countries in the region were ranked lower, with Lithuania scoring 57 points, Hungary 54, Latvia 49, the Czech Republic 48 and Slovakia 47.

The ranking showed that the countries perceived as the most corrupt in the world are Afghanistan, North Korea and Somalia, which all received just eight points each.

In the European Union, Greece was ranked the lowest with 40 points. Spain recorded a decline of as many as ten points this year to 59, and was ranked just below Poland, after corruption scandals were revealed in the ruling coalition and the royal family.

Kamila Wajszczuk

Clean or not?

The 2013 Corruption Perceptions Index Rank

Country

Score

1

Denmark

91

1

New Zealand

91

3

Finland

89

3

Sweden

89

5

Norway

86

5

Singapore

86

12

Germany

78

14

United Kingdom

76

22

France

71

28

Estonia

68

38

Poland

60

40

Spain

59

43

Lithuania

57

47

Hungary

54

49

Latvia

53

57

Czech Republic

48

61

Slovakia

47

Source: Transparency International

BUSINESS

DECEMBER 9-15, 2013

Investment

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5

Aviation

The oil and chemical giants want to build a petrochemical production unit in Gdaƒsk for z∏.12 billion

said Pawe∏ Jarczewski, CEO of Grupa Azoty.

In short, the facility would use materials provided by Lotos and produce semi-finished products for Grupa Azoty which will turn them into endproducts.

Currently the chemical giant spends some z∏.700 million a year on importing various products that it processes in its plants. Lotos has already announced that it doesn’t produce enough crude oil to satisfy its investment needs and the company will have to look elsewhere for the resources.

Chemical holding Grupa Azoty and oil firm Grupa Lotos have signed a letter of intent to establish an SPV responsible for conducting feasibility studies regarding a potential plant worth z∏.12 billion.

“We want to create a link between the refinery and chemical sectors that will be beneficial for the Polish economy,” said Lotos CEO Pawe∏ Olechnowicz.

The facility would use materials derived from crude oil processing which are perfect for petrochemical use. “The products made in the facility will be diverse and will ensure the development of many industrial sectors in this part of Europe,”

ocean.

Both companies might look for a third partner, possibly from abroad. “If another company would be interested in acquiring large quantities of semi-finished products from the facility it would be logical for them to join our enterprise,” said Grupa Azoty deputy CEO Witold Szczypiƒski.

The Lotos CEO added that the number of shares for each investor shouldn’t exceed 30-35 percent, adding that going public with the project is also a possibility.

European hub Where is the money?

COURTESY OF LOTOS

With such a huge project, the question remains who will finance it. So far, the government-run Polskie Inwestycje Rozwojowe has announced its involvement in the project, but it cannot put up more than z∏.750 million on a single project, which is just a drop in the

The facility will make semi-finished products for Grupa Azoty

The project, located in Gdaƒsk, would be one of the most expensive ones currently developed in Poland. By comparison, the Opole power plant extension is expected to cost some z∏.11.5 billion.

The project involves building an ethylene and propylene production plant. The companies plan to make a final investment decision in 2014 and construction could take place in 2016-2018. The plant would then launch production in 2019.

Mr Jarczewski said that he hopes that thanks to the investment, Gdaƒsk will become the third biggest petrochemical center in Europe, after Antwerp, Belgium, and the German city of Ludwigshafen, where the BASF headquarters are located.

Jacek Ciesnowski

COURTESY OF EADS

Lotos and Grupa Azoty Poland to enter panEuropean aviation holding? to spend billions on petrochemical unit

The Airbus is EADS’s flagship product

The Polish government is interested in acquiring a stake in EADS, the producer of Airbuses The biggest CEE economy wants to acquire a small 1-2 percent stake in The European Aeronautic Defence and Space Company (EADS), which manufactures Airbus planes and various military equipment.

As EADS is co-owned by other EU states, talks are occurring at the highest echelons of power. “It’s one of the options we are considering, although talks are at the very preliminary stages,” said Poland’s Defense Ministry spokesperson Jacek Soƒta.

“It’s a matter of giving Polish arms companies a chance to be present on the European market,” he added.

Part of the equation

VALKEA MEDIA

Tomasz Opiela named new CEO at Valkea Media

Tomasz Opiela Tomasz Opiela has been promoted to CEO at Valkea Media, owner of the Warsaw Business Journal Group, Poland’s oldest English language business news provider.

Mr Opiela previously developed and was director of Valkea’s custom publishing and social media departments. He has been with the company for six years.

“B2B advertising clients are looking for more and more cre-

ative solutions to get their messages to the market,” Mr Opiela said. “We’ve studied B2B media models all over the world, and we’re confident we have the tools to deliver those solutions,” he said.

“The key is blending online, print media and events such as conferences and seminars to both help customers boost their interface with new prospects, and to solidify existing business relationships,” Mr Opiela said.

“Hard news and key data indicators move 24/7, so our subscribers and users expect us to deliver information in real time,” he said. “This means print media must change – and becomes the natural place for analysis, commentary, in-depth profiles of major players and executive lifestyle,” he added.

“WBJ Group will expand content for its web platforms in

early 2014,” Mr Opiela said.

Those include Poland A.M., a daily newswire; and Financial Minute and Real Estate Newsletter, all of which are paid-subscription services available via the web and mobile devices.

Warsaw Business Journal Group’s portfolio also includes Book of Lists – a database of firms across more than 70 industries and business categories; and the annual guides Investing in Poland and Made in Poland, all of which are in print and online.

Valkea has a broad portfolio of business and lifestyle publications and web sites including Aktivist, an urban lifestyle magazine; Gaga, a parenting magazine and Warsaw Insider, a city guide – in addition to its custom publishing and social media divisions. ●

The stake which Poland wants to acquire is not significant.

France has a 12 percent stake in EADS, Germany 10.7 percent, while Spain has only 4 percent, but it will make Warsaw part of one of the most significant players in the global

aviation sector. It will also be a good solution for EADS, as Poland is about to start spending heavily on modernizing its army, with plans to fork out some z∏.240 billion by 2022.

Polish authorities have already said that Polish companies, or international companies present in Poland, will be favored in future tenders as it wants the economy to benefit from the investment as well.

EADS is in the running for a z∏.8 billion tender for new helicopters for the Polish Army. The company is among three still eligible (along with US-based Sikorsky and the British-Italian firm AugustaWestland). Being partially owned by the Polish government won’t hurt EADS’s chances.

What’s in it for us?

The question remains how Poland could acquire the stock. “Our shares are on the market, anyone can buy some,” said an EADS spokesperson when asked by AFP. But since Polish politicians are involved in the talks, the feeling is that they might undertake a different path.

When the holding was created, Spain, Germany and

France transferred some of their existing facilities into the holding in exchange for shares. Poland could do the same.

Still, without waiting to see whether Poland will acquire shares or not, EADS is making a move to further expand on Polish territory before the next Polish Army tenders are announced. The company currently owns PZL Ok´cie, which has announced it will make a completely new plane to be used by firefighters.

EADS vice-president Fabrice Lievin told daily Dziennik Gazeta Prawna that according to the company’s new strategy, Poland will be one of the five most important markets for the holding. However, its details depend on whether EADS wins any tenders here.

“Our rule is that every z∏oty that the government spends buying our equipment will be returned to the Polish economy in the mid-term period. We want to invest in Poland both in production as well as in research and development. We also want to order spare parts here,” Mr Lievin said.

Jacek Ciesnowski

6

BUSINESS

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Banking

DECEMBER 9-15, 2013

Stock market

BNP Paribas to take over Bank BG˚ WSE gears up for biggest offering in two years

COURTESY OF BNP PARIBAS

The debut of Energa will take place at a time of increased IPO activity

If the merger is approved, BNP Paribas will become the 6th biggest lender in Poland

The French financial group will pay z∏.4.2 billion for 98.5 percent shares of BG˚ After months of media speculation, it was finally announced that BNP Paribas will take over Bank Gospodarki ˚ywnoÊciowej from Dutch Rabobank.

Both lenders released a statement revealing that the value of the transaction will be z∏.4.2 billion (€1 billion), for which the French financial group will acquire 98.5 percent of BG˚ shares.

Until last week, there were a number of institutions in the running for the BG˚ stake.

According to various reports,

Santander, Bank Pekao (the Polish unit of UniCredit) and PZU were seen as other potential buyers.

Thanks to the acquisition, BNP Paribas, which has some z∏.20 billion in assets, will take control of z∏.37 billion of BG˚ assets as well, putting the bank in the top 10 in Poland.

The price for BG˚ might be high compared to other recent transactions on the Polish banking sector. For example, PKO BP bought Nordea – which is larger than BG˚ – for €700 million, but it has to be remembered that there were many other potential bidders in the running for BG˚. With every such transaction, the number of lenders available

for acquisition shrinks, rendering the remainders tasty morsels.

The takeover is yet to be approved by regulatory authorities. One of them, the Polish Financial Supervision Authority (KNF), has already expressed concern with the deal.

“We will be verifying the reasons why Rabobank decided to change its strategy for its presence on the Polish market,” the watchdog said in a statement. Earlier this year, the KNF had signaled that in its opinion there is no need for further consolidation in the Polish banking sector.

Kamila Wajszczuk, Jacek Ciesnowski

All is set for the bourse debut of Poland’s fourth-largest utility Energa. The company’s initial public offering is valued at z∏.2.41 billion, which makes it the largest IPO not only in Poland, but also in Central Europe in the last two years.

December 11 is scheduled as the first day of the utility’s trading.

Energa’s debut is a stock exchange privatization deal.

Poland’s State Treasury is selling 141,522,067 shares (a 34.18 percent stake) in the company at z∏.17 apiece. The number of shares offered to individual investors was 24,369,952. Large individual investors were offered 7,076,103 shares and institutional investors were able to buy 95,923,806 shares plus 14,152,206 shares subject to an overallotment option.

The Energa IPO proceeds will help the Treasury Ministry surpass its privatization revenue target for this year. The ministry had earlier set the target at z∏.3 billion, but after Energa’s debut the figure will reach z∏.4.46 billion.

Energa’s huge offering is just one of the signs of growing IPO activity in Warsaw. Last week, meanwhile, saw the largest initial public offering of a privatelyheld company on the WSE this year. Newag, a producer of trams, railway carriages and locomotives, debuted on the bourse on December 5 after a z∏.398 million offering.

Newag’s co-owners Zbigniew Jakubas, Multico SKA, Zbigniew Konieczek, Wies∏aw Piwowar and Bogdan Borek sold part of their stakes in the IPO. Individual investors bought 2 million shares at z∏.19 apiece and institutional investors subscribed to 17.56

million shares at z∏.20.50 apiece.

Several smaller public offerings are expected to take place on the Warsaw bourse before the end of this year. Real estate investor Capital Park recently completed its IPO worth z∏.136.2 million and plans to debut on the WSE on December 13, two days after Energa.

Recycling firm Elemental Holding is moving to the main index from NewConnect with a z∏.61.25 million new share issue.

Slovenian household goods producer Gorenje, already listed in Ljubljana, will also debut on the Warsaw bourse this year.

Kamila Wajszczuk

Record breakers Biggest IPOs on the WSE in 2013 Company

Value

Date

Energa

z∏.2.41 billion

December 11 (planned)

PKP Cargo

z∏.1.42 billion

October 30

Newag

z∏.398 million

December 5

Polski Holding NieruchomoÊci

z∏.238.6 million

February 13

Capital Bank

z∏.136.2 million

December 13 (planned) Source: Warsaw Stock Exchange

FINANCE & ECONOMICS

SHUTTERSTOCK

Poland’s unemployment rate most likely grew to 13.2-13.3 percent in November, Deputy Labor Minister Jacek M´cina told Radio PiN last Monday.

“We expect to record a certain increase of unemployment in November. We hope that it will not be large,” Mr M´cina said.

According to data from sta-

tistics office GUS, in October the registered unemployment rate was 13 percent, unchanged compared to September.

Meanwhile, the seasonally adjusted unemployment rate in Poland stood at 10.2 percent in October and remained stable compared to September, according to data published by the EU’s statistics office Euro-

stat.

According to Eurostat, throughout the EU the unemployment rate was 10.9 percent in October, also stable compared to the previous month.

In the euro area unemployment was at 12.1 percent compared to 12.2 percent in September.

KW

RPP leaves rates flat, as expected As had been widely expected by economists, the National Bank of Poland’s Monetary Policy Council (RPP) left interest rates unchanged at its December sitting. The NBP’s reference rate remains at its historic low of 2.5 percent.

The RPP reduced the ref-

domestic and export markets, and higher sales volumes on the back of price cuts,” HSBC economist Agata UrbaƒskaGiner wrote in the statement.

“The PMI survey as well as the economic sentiment indicators by the Polish statistical office point to a continuation of this gradual upward trend in the coming months,” she also said.

KW

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erence rate to that level in July 2013, thus ending a series of gradual cuts. It has since then maintained a neutral stance, saying that rates should remain flat at least until mid2014.

“In the opinion of the Council, lowering interest rates in the

first half of 2013 and keeping them unchanged in subsequent quarters supports recovery of the domestic economy, gradual return of inflation to the target and stabilization in the financial markets,” the RPP said in its press release.

KW

Standstill NBP’s reference rate 5

4 3 2 1 0

Dec. '11 Jan. '12 Feb. '12 Mar. '12 Apr. '12 May '12 Jun. '12 Jul. '12 Aug. '12 Sep. '12 Oct. '12 Nov. '12 Dec. '12 Jan. '13 Feb. '13 Mar. '13 Apr. '13 May '13 Jun. '13 Jul. '13 Aug. '13 Sep. '13 Oct. '13 Nov. '13 Dec. '13

2011, and output rose at the strongest pace in over two-anda-half years,” the financial institutions wrote in a press release.

New export business growth was slower than in October, but still high.

“The improvement was broad-based while higher new orders and output contributed the strongest. Firms reported improving demand from both

7

M´cina: Unemployment up by 0.2-0.3 points in November

PMI highest since April 2011

Conditions in Poland’s manufacturing sector continued to improve in November, according to the most recent reading of the PMI index published by HSBC and Markit Economics.

The figure for November was 54.4 compared to 53.4 in October. This was the highest reading since April 2011.

“New orders increased at the fastest rate since the start of

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Source:National Bank of Poland

DECEMBER 9-15, 2013

8

INTERVIEW

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DECEMBER 9-15, 2013

International

Kazakhstan coming closer to Poland WBJ asked the co-hosts of an economic forum – Polish Deputy Economy Minister Ilona Antoniszyn-Klik and the Ambassador of Kazakhstan to Poland, Yerik Utembayev – about Polish-Kazakh economic cooperation and the impact Kazakhstan’s Customs Union with Russia and Belarus has on these relations Ewa Boniecka: A meeting of the Polish-Kazakh Intergovernmental Commission for Economic Cooperation took place in Warsaw recently, with the participation of high-level government officials from both sides. What is the significance of these meetings for developing Polish-Kazakh economic cooperation?

Yerik Utembayev: A year ago we created the KazakhstanPolish Cooperation and Development Board as a forum for those genuinely interested in promoting bilateral cooperation.

To expand the scope of cooperation, our embassy also initiated the Kazakh-Polish Forum of Regions. We are working to organize its first edition in Kazakhstan in 2014.

Among the accomplishments in our bilateral rela-

tions one should mention the rapid expansion of trade turnover, which has practically doubled within the past five years, during a period of global economic downturn. In 2012 it exceeded $2.1 billion, according to data from the Kazakh customs service.

But what we want to improve in our economic cooperation is the share of Polish companies investing in our country. We would like to increase the number of Polish firms investing in the production of goods and services in our country and not only exporting their products there.

Apart from Polpharma, which has already invested $100 million in a plant in south Kazakhstan, the true giants of the Polish economy, such as KGHM, Synthos, Bumar, Pesa have all

expressed strong interest in entering our market with production, assembly or mining activities. We hope this interest will bring tangible results soon.

Ilona Antoniszyn-Klik: At the latest meeting of the Commission – the fifth so far – we dealt with the current and future perspectives for developing trade between Polish and Kazakh firms.

We encouraged Kazakhstan to invest in Poland, and discussed the possibilities of cooperation between our countries in the context of Kazakhstan’s participation in the Custom Union and Kazakh efforts to join the World Trade Organization (WTO).

During our discussion we also addressed the barriers met by Polish entrepreneurs in the Kazakh market.

We also talked about Kazakhstan’s organization of the International Exhibition Expo 2017 and the possibilities of Polish firms’ engagement in the preparation towards that event.

Kazakhstan is rich in energy and mineral resources, and its economy is developing

Yerik Utembayev rapidly. What opportunities do Polish firms pursue in Kazakhstan? Which branches of the Polish economy are most promising for Kazakh firms?

Ilona Antoniszyn-Klik: Kazakhstan is already the main economic partner of our country in Central Asia. It is

COURTESY OF KAZAKH EMBASSY IN POLAND

our fourth market in terms of export and import among the Eastern countries, after Russia, Ukraine and Belarus, and this is evidenced by growing trade and investment volumes.

Our exports in 2012 grew by over 15 percent, while turnover amounted to $961

million. After the first eight months of this year our mutual trade stood at $700 million.

There are around 160 companies with Polish capital registered in Kazakhstan, while in 2004 there were only 70 such economic entities. In 2002 that number was just 42.

I think that those results

INTERVIEW

DECEMBER 9-15, 2013

Ilona Antoniszyn-Klik will continue to improve. We have opportunities for developing mutual economic cooperation, mainly in the mining sector, in agriculture, food processing, heavy industry, manufacturing, defense, pharmaceuticals as well as in logistics and transport services.

I want to underline that that we are not only interested in widening the presence of Polish business in Kazakhstan, we are also encouraging Kazakh entrepreneurs to conduct business in Poland. We already have examples of Kazakh firms investing on the Warsaw Stock Exchange, and we think that the attraction of our bourse – the fastest developing in our region – will increase the interests of Kazakh investors in our offer.

Altogether, Kazakhstan is one of top five prospective international markets for Poland. We will conduct very intensive promotion activity already within the framework of three domains: construction, mining machinery and defense industry. Already this year, we have presented our Kazakh partners concrete offers within the framework of those programs.

Yerik Utembayev: According to research by Ernst and Young, Kazakhstan was one of the three fastest-growing economies globally in the previous decade, along with China and Qatar. Between 2000 and 2007, average GDP growth reached 10 percent annually.

Like many other economies strongly connected to world markets, we felt the impact of the global financial crisis in 2008-2009, when our growth slowed down to 1.1 percent.

Since 2010, however, we have been witnessing growth of no less than 5.5 percent on an annual basis.

Revenues from oil exports do significantly enhance the growth of our economy. However, most of them go directly

COURTESY OF MG.GOV.PL

to the National Fund, which is modeled on the Norwegian oil fund. By the end of 2012, it had accumulated around $70 billion.

This money is earmarked for long-term strategic investments. The only serious case of a reaction-based use of the money took place at the height of the crisis in 2009, when $12 billion from the National Fund was used for helping the troubled banking, construction, and SME sectors.

Our government understands too well that we cannot

“Kazakhstan’s customs border has come now to within 200 km of Warsaw.” limit our growth opportunities to the petroleum and mining industries.

In fact, Polish companies are welcome in all branches of the Kazakh economy. Among the most promising, however, are the chemical industry, manufacturing, environmentally-friendly technologies, biotechnology, IT and agriculture. Meanwhile, we see the best opportunities for Kazakh companies active in the Polish market in industries such as transport and logistics, agriculture, mining, IT and financial services.

What impact does Kazakhstan’s being part of the Customs Union with Russia and Belarus have on its economic cooperation with Poland, an EU member?

Ilona Antoniszyn-Klik: The fact that Poland is a member of the EU and Kazakhstan belongs to the Customs Union increases the chances of creating a market not only for one country, but also for other members of those communi-

ties. The crucial thing is to reach entrepreneurs with information about the new possibilities on the Kazakh market.

We do not want to create a situation where a lack of knowledge will create unnecessary barriers for developing trade and investment or cooperation between Polish and Kazakh firms. For this reason we are organizing regular seminars at the Ministry of Economy about access conditions to the markets of Customs Union members.

Yerik Utembayev: Judging by the fact that Polish exports to and investments in Kazakhstan have increased since the establishment of the Customs Union in 2010, we do not expect any negative effects of the arrangement. In fact, Kazakhstan’s customs border has come now to within 200 km of Warsaw.

Yes, tariffs might have risen for some articles. However, on the positive side, foreign companies working in Kazakhstan now have significantly easier access to the Russian (and Belarusian) markets. We have arguably the best business environment regionally and a liberal tax regime. For example, VAT is at 12 percent while it is 18 percent in Russia.

Corporate income tax is at 20 percent in Kazakhstan.

This and many other factors, we believe, encourage international companies to open businesses in Kazakhstan and to use our country as a base for expanding to the nearby markets of the Urals and Siberia, as well as our Central Asian neighbors and Western China.

Kazakhstan, however, intends to finish its accession talks with the WTO in 2014 and become a full member as soon as possible. We believe this would further improve conditions for Polish and other EU companies to work with our markets. ●

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9

10

OPINION & ANALYSIS

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DECEMBER 9-15, 2013

Europe’s red-tape economy Jacek Krawiec

O

cement. In some EU states, electricity prices for industrial customers are twice what their North American counterparts pay. Overly complex climate regulations, political resistance to shale-gas development, and energy policies that favor expensive, ineffec-

ver the past 60 years, the project of European integration has confronted many challenges: post-war economic hardships, the heavy yoke of communism, and the uncertain footing of the post-Cold War world. But, while it has overcome them all, with the European Union now comprising 28 states, many of which now share a common currency, the EU faces another, equally important challenge – that of reducing the burden of regulation weighing down its major industries.

European business is bound up in rules and regulations, many of which originate from unelected officials in Brussels, whose laudable intention to harmonize business conditions across the EU is instead sapping the continent’s commercial creativity and dynamism. As a result, economic performance has become sluggish as competitiveness declines and unemployment, especially among young people, remains stubbornly high.

creation will emerge simply of their own accord; as a result, rather than enjoying sustainable growth, Europe is heading toward a model for which a new term – “sustainable stagnation” – might be appropriate.

This approach is a colossal waste of

But Europe’s economy will not grow, and a sufficient number of jobs will not be created, if such vital industries as aluminum, steel, fuels, plastics, and cement are not allowed to thrive.

This outcome would be bad not only for the economy, but also for the envi-

Root-and-branch review Europe’s governments urgently need to undertake a root-and-branch review of the regulatory environment, especially in those industries that have the greatest impact on the wider economy.

And, after six decades of meddling, EU policymakers should step back and consider which restrictions have become harmful or irrelevant, and how better to support the entrepreneurs and industries of the future.

Much of the groundwork has already been laid by the OECD, in several guiding principles: economic goals, especially growth and competitiveness, should be as important as social and environmental goals; a regulation’s benefits must justify its costs; regulations should be reviewed frequently, and a cost-benefit analy-

“Excessive lawmaking has pushed up prices and pushed out investors, not only from refining and petrochemicals, but from all energyintensive sectors.”

SHUTTERSTOCK

Hampering business EU institutions issue thousands of regulations, directives, and decisions every year. In 2012, 1,799 laws were enacted; in 2011, there were 2,062. Some laws, enacted long ago for a European Community of six founding members, are still on the books. It is this thicket of red tape that hampers business and deters entrepreneurs.

One small but important example of this is the average cost of setting up a business, which is €158 in Canada, €664 in the US, and €2,285 in the EU (and as much as €4,141 in Italy). The sheer cost of getting started is as big a deterrent as one can imagine for a young entrepreneur trying to escape the bounds of unemployment.

European industry is afflicted by similar problems. The refining and petrochemical sector supplies the EU with a large proportion of its fuel, and is also a major source of tax revenue.

The downstream sector, together with fuels distribution, contributes a total of around €240 billion annually to treasury coffers. By any reckoning, this is an important industry that should not suffer from over regulation. But, while the industry faces the threat of inflated gas prices from around the world, its concerns closer to home are the abundance of EU and national energy regulations.

Excessive law-making has pushed up prices and pushed out investors, not only from refining and petrochemicals, but from all energy-intensive sectors, including aluminum, steel, and

authorities are doing nothing to encourage investment.

tive technologies are largely to blame.

Sustainable stagnation Some policymakers in Brussels are gradually beginning to recognize that lower energy prices might be good for the economy. But most still believe that protecting society and the environment from the wider effects of the energy business should take priority over the industry’s development and broader economic growth. They assume that robust recovery and job

money. As Bjørn Lomborg of the Copenhagen Consensus Center notes, “The European Union will pay $250 billion for its current climate policies each and every year for 87 years. For almost $20 trillion, temperatures by the end of the century will have been reduced by a negligible 0.05❍C.” By contrast, the EU is allocating a paltry €8 billion over seven years to alleviate youth unemployment, which currently runs close to 60 percent in some member states.

ronment, because these industries will simply continue relocating to markets with far worse environmental records.

The problem is not a lack of investment capital. In 2011, Europe’s publicly traded firms had an estimated €750 billion in cash sitting on their balance sheets, equivalent to twice the decline in private-sector investment in the EU from 2007 to 2011. But, despite the dire state of public finances, the desperate need for growth and jobs, and historically low interest rates, the

sis of all the alternatives – including simply maintaining the status quo – should always be carried out.

With 7 percent of the global population, 25 percent of global GDP, and 50 percent of global welfare expenditure, the EU has created a model that inspires millions of people to dream of emigrating to Europe. However, the EU’s historic emphasis on achieving its social goals, to the exclusion of industry’s long-term needs, is undermining the entire European project. The EU cannot be the inclusive, thriving, and democratic home that millions dream of if red tape is allowed to strangle the industries that are crucial to European prosperity. ● Jacek Krawiec is CEO and President of the Management Board of the Polish oil refiner PKN Orlen.

Copyright: Project Syndicate, 2013.

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11

Governance in the information age Joseph S. Nye

As

the year comes to an end, it is only natural to ask what might lie ahead. But, instead of asking what may lay ahead in 2014, let us jump to mid-century. What will governance look like in 2050?

That is what the World Economic Forum (WEF) asked at a recent meeting in Dubai that focused on the future of governance under three potential scenarios arising from the ongoing information revolution. With that revolution already marginalizing some countries and communities – and creating new opportunities for others – the question could hardly be more timely.

should already be implementing policies aimed at guiding trends like urbanization, the rise of big data, and the grouping of people into narrow communities, often based on their relationship to the market.

The goal should be to take advantage of these trends’ potential benefits, while ensuring that they do not undermine other critical aspects of governance. For example, although megacities have the potential to create new opportunities for workers and businesses, they cannot solve universal problems like climate change or manage the production and protection of national and global public goods.

Megacities

Big data

The first scenario that participants considered is a world ruled by socalled “megacities,” where governance is administered largely by major urban agglomerations. The second possibility is a world in which strong central governments use big data to fortify their control. And, in the third scenario, central governments are fundamentally weak, with markets – and the enterprises that dominate them – providing almost all services.

Each of these scenarios is an extrapolation of a current trend.

While all of them could be beneficial in some respects, they also have features that, if left unchecked, could lead to dystopian outcomes. Policymakers

Likewise, while the use of big data has substantial problem-solving potential, important questions remain about who owns, who controls, and who regulates the use of the data. The notion of a “datocracy” incites fear of an Orwellian “e-1984.” Indeed, the recent revelations about National Security Agency surveillance programs barely scratch the surface of the issue. After all, the use of big data is not confined to governments and corporations; anonymous criminal groups can easily abuse the information, too.

Finally, while individual choice within markets is often the most efficient way to allocate resources, markets do not produce a sufficient supply

of public goods. Indeed, there are some goods that the private sector is simply unable to provide. This system may seem acceptable to those within the “gated communities” that benefit from it, but what about all those left outside?

The WEF’s Global Agenda Council on the Future of Government, of which I am a part, has considered ways in which information technology can improve governance and reduce feelings of alienation among the governed. The most effective initiatives, the council observed, often arise from partnerships between government and the private sector.

For example, in Kenya, a private company developed a mobile-payments system that allows users to transfer money using cell phones, effectively creating a banking system much more quickly than the government could have done. Once the system was privately created, the government was able to use it to provide additional services.

As a result, a Kenyan farmer in a remote district can now obtain information about crop prices or transfer funds, without having to travel long distances and wait in lines. While such initiatives cannot solve the problem of inequality, they can help to relieve some of its most damaging effects.

At a time of rapid social change and relentless technological advance-

ment, efforts to improve governance – at the local, national, or international level – will require careful thought and experimentation, in order to determine how to balance inclusive decision-making with the ever-evolving needs of markets. As the American diplomat Harlan Cleveland once asked, “How will we get everybody in on the act, and still get some action?”

Double majorities Consider international institutions.

Today, the world is organized into some 200 countries; in all likelihood, it will be in 2050 as well. But only 16 governmental entities account for two-thirds of the world’s income and two-thirds of its population. Many have advocated the use of “double majorities” – which require a majority of votes according to two separate criteria, population and economic output – to elicit action from a manageable number of states while enhancing weaker states’ influence in decision-making.

But, though the G-20 has moved in this direction, the approach to setting a global agenda remains flawed.

Indeed, it seems to be most effective in times of crisis; in more normal times, as we have seen, the G-20 struggles to get things done.

Moreover, even if the doublemajority system helps to empower some weaker states, it does not

account for the role of the world’s smallest countries in global decisionmaking processes. Although these countries represent a small share of the global population, they comprise a significant majority of the total number of countries.

One potential solution would be for states to represent each other, as occurs in the International Monetary Fund. But the IMF’s experience exposes significant challenges in implementation.

World leaders have not yet figured out how to reconcile the moral conviction that all people are equal with the simple fact that all countries are not. In a global information age, governance systems capable of addressing fundamental issues like security, welfare, liberty, and identity will require coalitions that are small enough to function efficiently and a decision concerning what to do about those who are underrepresented.

Obviously, all of this calls for a lot more investigation. Exploring potential future scenarios, as the WEF has done, is an important step in the right direction. ● Joseph S. Nye is a former US assistant secretary of defense and chairman of the US National Intelligence Council. Copyright: Project Syndicate, 2013 Project-syndicate.org

The rise of an insecure giant Shlomo Ben-Ami

B

y the time China overtakes the United States as the world’s largest economy sometime in the next few years, it will have cemented its status as a major military power – one whose drive to assert itself strategically already is inspiring serious anxiety among its neighbors. But the truth is that China is a solitary, vulnerable rising power – one that faces potentially crippling domestic challenges.

China is currently encircled by US military installations and allies. While Asian countries are largely willing to maintain and even expand their economic ties with China, none (except North Korea, which depends on Chinese aid) is prepared to accept it as the region’s primary power. In fact, US allies like Indonesia and India have emerged as global players largely in response to China’s rise.

For its part, the US has shifted substantial military power toward Asia – with high-profile military deployments in Australia and the Philippines, and 60 percent of America’s naval capabilities now deployed in the region – and has enhanced its defense ties with Japan and South Korea. Moreover, it is helping to spearhead the TransPacific Partnership, an economic and trade agreement that excludes China but includes many of its regional neighbors.

Against this background, the US claims that its strategic rebalancing is

not about containing China are not particularly convincing. Indeed, the US is pursuing a strategy of primacy in Asia, not a partnership between equals, and this, together with China’s own internal tensions, is undermining China’s ability to participate productively in regional and global forums.

Double-edged sword As it stands, China lacks the confidence and experience needed to navigate the international arena. For example, it will not consider resolving in an international forum its dispute with Japan in the East China Sea over the Diaoyu Islands (called the Senkaku Islands in Japan). International law, China understands, is a double-edged sword that can be used against China in other territorial disputes, or even in its domestic affairs.

Similarly, China’s miserly initial offer of $100,000 in aid following the recent typhoon in the Philippines demonstrates how far the country is from being a mature member of the international community. As a Chinese official admitted at a recent seminar in Seoul, concepts like “regional order” have never been a part of the country’s political vocabulary.

With regard to Japan, China faces a conundrum. It is relatively content with Japan being a US security protectorate, because it fears the alternative: a Japan that expands its independent

military reach. But US efforts to avoid precisely such an outcome cannot be good news for the Chinese, either, given that they entail a deepening of the bilateral defense relationship and support for upgrading Japan’s military capabilities.

In short, China’s regional exceptionalism has landed it in a strategic trap. It is unwilling to accept American leadership in Asia; but it is also reluctant to assume a more prominent role in promoting regional integration, fearing the concomitant pressure for more economic liberalization, adherence to international norms and rules, and a more transparent approach to its military buildup.

Varacious guest Even the proliferation of China’s economic ties in Africa, the Middle East, and South America may reflect vulnerability rather than imperial ambition.

China’s voracious quest for new energy sources has already caused it to overstretch its limited ability to protect its sea lanes.

Despite bold reform plans – outlined at the recent Third Plenum of the 18th Central Committee of the Chinese Communist Party – China’s prospects remain compromised by deep-rooted contradictions. For example, the inherent tension between the social change that development demands and the imperative of politi-

cal stability required by authoritarian rule makes the current situation unsustainable in the long run.

Likewise, if the reform outline’s promise of a “decisive role” for the market ends up raising wages for poor Chinese, domestic demand might increase, but China will lose its main competitive advantage in international markets. This kind of dilemma has contributed to the fall of other developing-country dictatorships.

Strategic anxiety China understands that, for now, US strategic primacy is an immutable reality. Even so, its leaders’ strategic anxiety was on display at President Xi Jinping’s June meeting with US President Barack Obama, where he demanded, with the vagueness characteristic of Chinese officials, “mutual respect” and recognition of China’s “territorial integrity.”

The ostensibly trivial expression “mutual respect” actually modulates China’s true desire: a return to the Westphalian principle of non-interference in states’ domestic affairs, particularly their human-rights records. China has staunchly opposed Western efforts, whether in Syria or in North Korea, to circumvent this principle with doctrines like the “Responsibility to Protect.”

Similarly, Xi’s call for the US to respect its “territorial integrity” car-

ries a specific and pointed message.

In China’s view, the US has increasingly been encroaching on its rights with regard to Taiwan, while refusing to recognize China’s many other territorial and maritime claims against US allies in the South China Sea. Experience demonstrates the dangers that can arise when vulnerable powers act independently. One need look no further than Israel, with its penchant for overreaction on security matters, or Iran, with its insistence on enriching uranium, to see what can happen when an isolated power bases its actions on a sense of existential vulnerability.

China’s rise is fraught with fear and uncertainty. Encirclement by a foreign power that threatens to encroach on what it considers to be its inalienable sovereign rights is bound to drive it to become a revolutionary power bent on upending the status quo. Before China and the US overstep each others boundaries, they should abandon the concepts of “primacy” and “containment” in favor of a concert of Asian powers capable of resolving their differences. ● Shlomo Ben-Ami is a former Israeli foreign minister who now serves as Vice President of the Toledo International Center for Peace. Copyright: Project Syndicate, 2013 Project-syndicate.org

12

COVER STORY

www.wbj.pl

mBank issues bonds for z∏.500 million Poland’s first online bank mBank, a unit of German Commerzbank, has issued subordinated bonds worth z∏.500 million, the bank reported in a statement last Wednesday. They will mature on December 20, 2023. The lender plans to list the bonds within the trading system of BondSpot, one of the trading units of the Warsaw Stock Exchange.

DECEMBER 9-15, 2013

International relations

The Ukraine effect How to tackle Russia’s policy of the clenched fist?

Remi Adekoya

Poland’s M&A market may record a rebound in 2014, Joanna Korpus from the Warsaw School of Economics said at a conference last week.

Cautious optimism on the part of investors and economic growth in the US, the UK and the euro zone should contribute to growth on the global M&A market. “After two years of stagnation, Poland should also observe a rebound on this market,” Ms Korpus added. In H1 2013, there were 104 M&A’s recorded in Poland, an 18.8% decline year-onyear. ●

SHJUTTERSTOCK

More M&A’s in 2014?

here was a time not so long ago when it seemed Russia’s ruling elite was genuinely interested in closer ties with the European Union and the western world in general.

During Dmitry Medvedev’s four-year stint as president of Russia from 2008 to 2012, he certainly made all the right

T

noises. Mr Medvedev talked about the need to modernize Russia’s economy and society.

He said corruption is a plague which must be tackled and even condemned what he referred to as Russian “legal nihilism.”

All this was music to western ears, but even assuming Mr Medvedev was sincere

about his intentions for Russia, current Kremlin boss Vladimir Vladimirovich Putin certainly has other ideas.

Since retaking the presidency in 2012, Mr Putin has continued to poke his finger in the eye of the west, most recently with his tactics in Ukraine, which is now experiencing turmoil as hundreds of

thousands protest the decision of President Viktor Yanukovych to forgo the signing of an Association Agreement with the European Union.

But has Mr Putin gone too far this time?

The fallout “I think that Russia’s engagement in Ukraine will have a

strong impact on bilateral relations between Brussels and Moscow both in the political and economic realm,” said Jaros∏aw åwiek-Karpowicz, an analyst at The Polish Institute of International Affairs. “EU elites recognize that Russia did what it could to hamper the Association Agreement,” he added.

COVER STORY

Mr åwiek-Karpowicz said the events in Ukraine would “definitely” not help move forward ongoing talks between Russia and the EU on a free trade zone between the two economies. These talks have been going on since 2005 with scant, if any, progress being made. Vladimir Putin does not see the EU as a model to emulate, rather the current Russian leadership is interested in its own development model based on Russian “traditional values and a controlled democracy,” he said.

The Kremlin, Mr åwiekKarpowicz added, fears closer ties with the EU could usher in a change to the political system in Russia and would strengthen the position of opposition political parties in the country.

Putin’s disservice “I think Putin has done a big disservice to Russia by being so hard-nosed and aggressive on the Ukraine issue. It showed he is afraid of competition with the EU – the competition of values,” said Judy Dempsey, an analyst at Carnegie Europe who has covered Germany and Eastern Europe as a correspondent for the Financial Times and the International Herald Tribune.

Ms Dempsey said the Russian leader was afraid that the young generation of Ukrainians and other post-Soviet republic citizens would, if brought closer to the EU, start to gravitate towards western values and norms and ultimately, towards liberal democracies.

A second reason for Mr Putin’s aggressive reaction, said Ms Dempsey, was the fact that a trade deal between the EU and Poland’s eastern neighbor would have meant a new set of rules that Ukrainian oligarchs would have eventually ended up playing by. “That, the Kremlin definitely did not want,” said Ms Dempsey.

The energy issue So what will determine the status of EU-Ukraine relations in the future?

Both Ms Dempsey and Mr åwiek-Karpowicz agree that energy issues will be key in shaping future EU-Ukraine relations.

In September of last year, the European Commission opened a formal investigation into suspected market abuses

by Russian gas giant Gazprom, focusing specifically on whether Gazprom had used its dominant position in the EU gas market to thwart competitors and push up prices in Central and Eastern Europe.

The Kremlin responded by imposing a law preventing the company from disclosing information to foreign regulators without its permission.

However, last week Gazprom announced it would present proposals to address the EU’s antitrust concerns.

“Gazprom expressed its willingness to explore the possibility of a commitment-based solution to the Commission’s competition concerns,” wrote EU Competition Commissioner Joaquin Almunia in an e-mail after meeting the Russian gas company’s Deputy CEO Alexander Medvedev.

It will be interesting to see how the competition issue plays out. Energy matters are definitely a priority for the Kremlin, but Mr Putin and his colleagues might be in for a rude awakening.

The conventional wisdom in many EU capitals used to be that Europe could do business with Russia, especially on energy matters. That has not proven so easy.

There is now a growing sentiment that continuing to trade gas with Russia could hamper the planned liberalization of the energy market in Europe, Mr åwiek-Karpowicz said.

“Russia’s gas pricing is not based on free market principles and is quite inflexible.

This is because what Moscow wants is stable long-term contracts. It needs lots of money to maintain the political and economic system in place,” said Mr åwiek-Karpowicz.

If the EU does decide to actively strive at reducing the amount of gas its member states import from Russia, this would seriously weaken the Kremlin’s position vis-a-vis Brussels. However, such a process would likely take many years and cost tens of billions of euros, which the EU does not have right now.

Looking forward In recent years, Mr Putin’s rhetoric has become more conservative and aggressive both on the domestic and international front. The gloves have been off for some time now.

13

Luxury market growing The Polish luxury goods market will grow to be worth z∏.12.9 bln by 2016, according to a report published by advisory firm KPMG. In 2013 the market will be worth z∏.10.8 bln, in 2014 it should amount to z∏.11.3 bln and then to z∏.12.9 bln in 2015. KPMG analysts expect the number of wealthy people in Poland to grow by 18,000 to 786,000 in 2013. By 2016 Poland should have almost 1 mln residents with total net incomes of z∏.172 bln.

Poland 39th best place to do business

Has Vladimir Putin overplayed his hand this time? according to 2012 IMF figures.

Furthermore, globalization has not rendered geography irrelevant and Russia’s location works in its favor. The EU will thus have to find a way to deal with the Kremlin.

Ms Dempsey said Europe’s key-player, Angela Merkel is now going to take a “tougher stance” on Russia.

The German chancellor

“Angela Merkel is now going to take a ‘tougher stance’ on Russia.”

However, the reality is that dealing with Russia in the foreseeable future will mean dealing with Vladimir Putin, for better or worse. Even though there are encouraging signs of the emergence of a critical civil society in Russia, the country’s political elite still continue to dominate the country with the acquiescence of most average Russians.

Being nice to Mr Putin has not gotten Europe very far but on the other hand, he cannot be ignored or treated as the leader of a third-rate power as some think he ought to be.

Yes, Russia’s GDP is heavily dependent on oil and gas prices, but its economy, however old-fashioned, is still the 8th largest in the world,

www.wbj.pl

SHUTTERSTOCK

DECEMBER 9-15, 2013

has never gotten on with Mr Putin, she said. “Despite this, she tried to reach out but the Russians never delivered.

Angela Merkel believes in a EU-Russia partnership of “parallel values.”

“The EU has to learn that when you take a stand, you have to stick to it,” added Ms Dempsey. Agreed. What remains now is for the EU to work out a cohesive and effective strategy for dealing with Russia. A strategy which will guarantee the interests of EU member states while at the same time maintaining robust diplomatic, political and economic ties with Moscow. That will not be easy but surely Europe has the brains to figure something out. ●

Poland was ranked 39th out of 145 countries in the latest edition of the Best Countries for Business ranking compiled by Forbes.

Poland did worse than most western European countries, but also than Estonia (23), Lithuania (25) and Latvia (35).

Poland did however rank 1st in terms of personal freedom and 10th in terms of economic freedom. ●

PAKIET OBEJMUJE • Noclegi w komfortowym pokoju ze śniadaniem • Obiadokolacje serwowane w Restauracji Kolumnowej • Spacer z przewodnikiem po mieście • Nocny spacer z pochodniami po krużgankach zamkowych • Zwiedzanie Zbrojowni Zamkowej • Strachy w Zamkowej Izbie Tortur • Zajęcia z animatorem dla dzieci jak i dorosłych, w programie

PONADTO DO DYSPOZYCJI GOŚCI • Nordic walking • Lodowisko z wypożyczalnią łyżew • „Kącik zabaw” dla najmłodszych dostępny codziennie

między innymi: zapoznanie się z tajnikami warsztatów (garncarskiego, tkackiego, mennicy), strzelnica zamkowa,

w godzinach od 9.00 do 20.00

• Bezpłatny Internet Wi-Fi • Organizacja kuligu (przy sprzyjającej aurze, dodatkowo płatne, zapisy w recepcji hotelowej)

• Nauka jazdy konnej (dodatkowo płatne, zapisy w recepcji hotelowej)

• 15% rabat na zabiegi w SPA & Wellness • 50% rabat na korzystanie z sauny i jacuzzi • Na życzenie gości zapewniamy: łóżeczko dla dziecka, dodatkową

• Widowisko „Wakacje z duchami” • Warsztaty kulinarne z szefem kuchni

pościel, przewijak, krzesełko do karmienia.

540 pln / 3 noclegi

781 pln / 5 noclegów

991 pln / 7 noclegów

cena za osobę dorosłą w pokoju dwuosobowym typu standard

cena za osobę dorosłą w pokoju dwuosobowym typu standard

cena za osobę dorosłą w pokoju dwuosobowym typu standard

Dzieci do lat 5 - GRATIS

Dzieci do lat 5 - GRATIS

Dzieci do lat 5 - GRATIS

Dzieci 6-13 lat - 270 pln

Dzieci 6-13 lat - 390 pln

Dzieci 6-13 lat - 431 pln

Retail rituals

Rotunda makeover

With big cities increasingly saturated with shopping malls, developers are turning their attention to small and mid-sized towns 17

PKO BP wants to spend z∏.15 million on revamping its iconic building in Warsaw 18

LOKALE IMMOBILIA

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

Erbud to construct Mangalia mixed-use scheme Construction company Erbud has signed a conditional agreement for the construction of an office/retail building dubbed Mangalia in Warsaw’s Mokotów district. The contract’s net value is z∏.31.7 million.

The investor behind the scheme is Arkady Sobieskiego. The construction work will take 16 months and is set to commence once the investor secures the financing for the development and signs a loan agreement. ●

In this issue Warsaw Central Station . . . . . .15 Polnord’s mini apartments . . .15 Retail in smaller cities . . . . . . .17 PHN privatization . . . . . . . . . . . .17 Rotunda revamp . . . . . . . . . . . .18 Enterprise Park . . . . . . . . . . . . .18

Central Station in need of another facelift Only two years after the previous renovation was completed, Warsaw’s Central Railway Station will undergo more refurbishing State-owned railway holding PKP will invest up to z∏.100 million in further renovation of the capital’s main station, according to reports by Forsal.pl.

In 2011-2012, before the Euro 2012 soccer championship, the station underwent modernization worth z∏.50 million. However, the previous renovation left the station with a leaking ceiling as well as other defects which now need to be repaired. The station’s interior and the building’s facade will also be redesigned.

“The previous renovation was effective … but it barely scratched the surface. Urgent investment is needed at the Central Station unless we want it to start crumbling again,” a PKP source told Forsal.pl.

well as modernization of the main hall’s heating system, which is expected to cost some z∏.13 million.

Costly repairs

COURTESY OF WIKIMEDIA COMMONS/BOSTON9

Developer Marvipol has sold z∏.60 million-worth of three-year bonds to institutional investors, the company announced last week. The proceeds from the issue will be used to pay off the remainder of an investment loan the developer took out for the construction of the Apartamenty Mokotów Park residential estate as well as to buy out bonds maturing in December this year and in January 2014. The bonds will be backed by finished apartments and commercial units in the second and third phase of Apartamenty Mokotów Park.

Renovation

Warsaw Central Station is one of only 13 PKP stations that bring profit Revamp 2.0 One of the planned investments involves revamping the station’s main hall. The first stage of the project has been completed with the installation of 10 new escalators worth z∏.6.5 million. The glass cubicles in the main hall, housing a newspaper stand, a florist and

fast-food chain McDonald’s.

Apart from opening its own restaurant, the tenant will sublease the rest of the space to other food chains, including a Mexican restaurant and a coffee shop.

Further work in the main hall will see a change in the glass facade of the building, as

the tourist information office, though built only two years ago, will be removed. The station’s operator is set to publish the new design concept in several weeks.

After the work is completed, the station will feature a food court in its main hall, which has been pre-leased to

The station’s ceiling is also in need of repairs to eliminate leaks, which appeared merely days after the previous round of renovations had been completed.

The first phase, consisting of sealing the joints over the platforms, was finished last week. Parts of the station located underneath tram tracks on Al. Jana Paw∏a II will undergo the same procedure in the second quarter of 2014. The bill for the repairs is expected to amount to z∏.9.5 million.

Warsaw Central is the largest railway station in Poland, handling some 25 million passengers annually. It was opened in 1975 for the visit of Soviet leader Leonid Brezhnev to Poland.

It is also one of only 13 profitable railway stations in Poland. Each year PKP incurs a z∏.150 million loss from operating its stations.

Beata Socha

Residential

Looking for a residential niche Polnord will build several hundred miniapartments in Warsaw’s Wilanów district Polnord is preparing the construction of an eight-building complex, consisting of hundreds of small studio apartments, each measuring 18-19 sqm. The units will cost not more than z∏.200,000. The development is scheduled to commence in the first half of 2014 and be completed in 2015.

According to Polnord, the real estate market in Warsaw’s Wilanów district is in need of residential units of this kind.

“It is an offer for those who

want to live on their own, don’t want to spend over z∏.200,000 and don’t care much about the amount of space they have,” the developer said.

In order to circumvent zoning restrictions, which do not allow for residential development on this plot of land but allow for hospitality facilities, the developer wants the development to have apartment hotel functions.

The change in status to a hotel apartment does have its drawbacks. Instead of an 8 percent VAT tax which Poles pay for residential units, buyers will have to pay 23 percent.

This could in fact be a blessing in disguise, as companies have their VAT expenditures reim-

bursed. The developer is hoping that nearby office hubs will provide some demand.

“Tenants from the nearby Wilanów Office Park, like Asseco or Medicover, could be interested,” Tomasz Sznajder told Gazeta Wyborcza. “These clients don’t pay too much attention to the unit’s area,” Mr Sznajder added.

The company is going to submit construction plans by the end of this year and start construction work in spring of 2014. In the first phase, the developer plans to create two buildings with 200 studios, a laundry room, and a cafeteria.

Polnord’s project has been inspired by Wroc∏aw’s Starter, a development created from a

COURTESY OF POLNORD

Marvipol raises z∏.60 million through bonds issue

DECEMBER 9-15, 2013, LI 18/48

Each studio apartment will offer some 18-19 sqm for under z∏.200,000 former student dormitory and now enjoying great interest among clients.

Last week, the developer appointed new supervisory board members, Artur J´drzejewski, Piotr Nadolski and

Zygmunt Roman, in place of the six board members who resigned, including the president of the supervisory board, Ryszard Krauze.

Aleksandra S∏abisz, Beata Socha

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

LOKALE IMMOBILIA – REAL ESTATE

DECEMBER 9-15, 2013

Retail

Smaller cities setting the tone

After the delivery of several large shopping centers in major Polish cities this year, such as Poznaƒ City Center or Galeria Katowicka in the Silesian Agglomeration, the time has come for smaller cities and towns to take center stage, according to experts present at The City Business Forum, held on December 4-5 in Warsaw’s Novotel hotel.

“In the next few years developers’ focus on smaller cities will set the tone for the retail market,” said Patrycja Dzikowska, associate director of research and consultancy at Jones Lang LaSalle. “New schemes are being constructed in cities like Olsztyn, Kalisz, Elblàg, Lublin and Siedlce,” Ms Dzikowska added.

Larger catchment Some of those smaller cities are already showing significant saturation levels, like Rzeszów, with 800 sqm per 1,000 inhabitants, Legnica and Opole.

These cities, however, act as retail hubs for several other smaller towns, sometimes even

COURTESY OF THE CITY BUSINESS FORUM

As major Polish cities grow increasingly saturated in retail space, developers are looking for opportunities in cities with populations smaller than 200,000

Discussion panel on the retail market. (L-R) Waldemar Ci´pka (WMC Consulting), Rafa∏ Fabisiak (KPRF Law Ofice), Patrycja Dzikowska (JLL), Anna Kalinowska (Alma Market), Beata Socha (WBJ) 100 km away, and thus their retail centers may have much larger catchment areas. Still, “developers should be very careful when considering a new project there,” Ms Dzikowska remarked.

Eastern cities, like Lublin, Olsztyn, E∏k and Bia∏ystok, are also developing fairly rapidly.

Bia∏ystok already has several large-format schemes, but continues to attract retail developers, mainly because of the big number of clients coming from Russia’s Kaliningrad Oblast.

more careful when deciding on expansion. They monitor all market indicators, like the size of the population, its purchasing power, as well as employment structure in the area.

“Tenants are not afraid of small cities. Still, there is no ‘run’ on this market segment, either,” Ms Dzikowska said.

In particular, smaller tenants interested in leasing 50200 sqm of space have adopted a “wait and see” approach, according to Waldemar Ci´pka from WMC Consulting.

“Today tenants are very cautious, particularly since the ‘last minute’ rule has been working out well for them,” Mr Ci´pka said.

‘Wait and see’ Experts agree that following the 2008 financial crisis, retail chains have become much

Economy brands and discount supermarkets There is no denying the fact that with lower purchasing power, smaller cities mainly attract “economy” brands and discount supermarket chains. Anna Kalinowska, expansion manager at Alma Market said that an upmarket store like Alma will continue to target predominantly major cities.

“We look at where residential developers decide to build their apartment estates and we try to meet their clients’ needs with an appropriate retail offer,” Ms Kalinowska explained.

Beata Socha

Privatization

PHN goes public with privatization offer Rakowiecka 19, are set to be completed by the end of the year. Foksal 10A will deliver 2,540 sqm of office space and 482 sqm of retail space, while Rakowiecka 19, currently

being refurbished into class-A office space, offers 1,800 sqm.

PHN earlier said it is also looking to acquire more classA schemes.

BKS, KW

COURTESY OF PHN

Poland’s State Treasury announced its plans to go forward with the privatization of real estate group Polski Holding NieruchomoÊci (PHN) through a public tender, Deputy Treasury Minister Pawe∏ Tamborski said last Wednesday.

In late November, the Treasury’s advisors, Deutsche Bank and Societe Generale, sent out investment teasers to a selected group of investors.

Now all investors interested in purchasing a stake in the statecontrolled holding are welcome to place their bids.

Mr Tamborski said that the Treasury is considering selling all the shares it now holds in PHN. It might, however, keep a minority stake in the property firm, he added.

A virtual data room for potential investors will be open between January and March 2014. Institutions interested in the offer will receive

all the data necessary to conduct due diligence of the company, including year-end asset valuation, in the first quarter of 2014, Mr Tamborski added.

The privatization process should be completed by the end of H1 2014.

The State Treasury now holds 73 percent in PHN. In February this year, it sold a 25 percent stake in the firm in an IPO on the Warsaw Stock Exchange.

PHN, created in 2011 through a consolidation of real estate companies owned by the State Treasury, is one of the largest commercial real estate groups in Poland in terms of asset under management. The company has 148 properties in its portfolio and a land bank of over 1,100 ha, including plots in Warsaw, Wroc∏aw, Gdaƒsk and Gdynia.

The holding’s major assets include the Intraco office building, a retail-service complex on ul. Bartycka in Warsaw’s Mokotów district, as well as the Kaskada office scheme.

PHN is also developing new office projects, two of which, Foksal 10A and

Foksal 10A will deliver 2,540 sqm of office space and 482 sqm of retail space

COURTESY OF PHN

The State Treasury plans to sell all its shares in the holding and expand its portfolio

Rakowiecka 19 is currently being refurbished into a class-A office scheme

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17

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Mixed-use

Enterprise Park second phase topped out

Warsaw’s Rotunda to be revamped Poland’s largest lender PKO BP has announced the results of a competition for the refurbishment of its landmark Rotunda building in the center of Warsaw. The first prize went to the Kraków-based GowinSiuta architectural team.

The authors of the winning project, Bart∏omiej Gowin and Karol Siuta, designed the Rotunda building to retain its role as a banking outlet on the ground floor and in the basement. The first storey, currently housing offices, will be a publicly accessible area, intended for meetings and possibly a cafe.

After the revamp, the building will have a double facade, with stairs leading up to the first storey placed between them. The building’s ceiling will retain its characteristic jagged line but will feature a skylight.

New features are also planned outside the building.

“Rotunda is one of the most recognizable architectural symbols of our country,” said Zbig-

niew Jagie∏∏o, PKO BP’s CEO. “The revitalized scheme will breathe new life into the capital’s city center,” he added.

The project will cost about z∏.15.5 million to carry out.

PKO BP has said it would like to launch it as soon as possible.

It will, however, have to secure an agreement with city authorities first, as it does not own the land outside Rotunda.

There have already been

several attempts to refurbish, revitalize and even to demolish the existing structure and build a new development that would be similar in form to its iconic predecessor and would retain its function as home to one of the bank’s Warsaw branches.

Back in 2008, the bank held another competition for the best architectural concept, which would have seen a new

building erected in place of Rotunda. The winning design, prepared by Gdaƒsk-based KD Kozikowski Design Pracownia Architektoniczna architectural studio, envisaged a glass-covered cylinder structure. The project was never carried out, as there were protests against the demolition of the landmark.

Kamila Wajszczuk, Beata Socha

COURTESY OF ROTUNDA2013.PL

The revitalization project will cost about z∏.15.5 million to carry out

DECEMBER 9-15, 2013

Kraków-based Gowin-Siuta architectural team designed the winning project

COURTESY OF AVESTUS

18

Altogether Enterprise Park will deliver some 29,000 sqm of class-A office space Property developer Avestus Real Estate celebrated the topping-out of the C building, the second phase of the Enterprise Park office project in Kraków.

The 14,000-sqm building, dubbed C, is scheduled to be delivered in August 2014. Its construction was launched five months ago.

“I am convinced that the construction will be completed as planned, and tenants will be able to move into new offices in the summer of next year,” said Maciej Go∏´biewski, lease and marketing manager at Avestus Real Estate.

The development of phase 2 has been financed by a consortium of Raiffeisen Bank and Alior Bank. The project’s general contractor is Eiffage Budownictwo Polska.

Phase 1 of Enterprise Park, completed in October 2012, consists of two buildings, A and B, which have already been awarded BREEAM “Very Good” certification.

Altogether the three buildings will deliver an approximate total area of 29,000 sqm of class-A office space.

Enterprise Park complex is a modern business park located near the city center in the Podgórze district and 3.5 kilometers from the city’s central market square.

Some of the projects developed by Avestus Real Estate include the International Business Center, Warsaw Financial Center and WiÊniowy Business Park’s F building.

Kamila Wajszczuk, Beata Socha

MARKETS

DECEMBER 9-15, 2013

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

15,821.51 (Dec 5 close)

S&P500

4,033.17 (Dec 5 close)

-1.71% (for the week)

FTSE100

1,785.03 (Dec 5 close)

-0.29% (for the week)

DAX

6,551.99 (Dec 6 close)

-1.23% (for the week)

-1.48% (for the week)

Waiting for Santa

NIKKEI 9,172.41 (Dec 6 close)

15,299.86 (Dec 6 close)

-2.48% (for the week)

-2.31% (for the week)

CHANGE: 17.96% (year to Dec 5)

CHANGE: 29.59% (year to Dec 5)

CHANGE: 22.06% (year to Dec 5)

CHANGE: 8.70% (year to Dec 6)

CHANGE: 17.92% (year to Dec 6)

CHANGE: 43.15% (year to Dec 6)

52-week high: 16,174.51

52-week high: 4,069.69

52-week high: 1,813.55

52-week high: 6,875.60

52-week high: 9,424.83

52-week high: 15,942.60

52-week low: 12,883.89

52-week low: 2,951.04

52-week low: 1,398.11

52-week low: 5,873.40

52-week low: 7,418.84

52-week low: 9,487.95

¸ukasz Wróbel Noble Securities International stock markets finished last week with mostly uninspiring results. Profit taking after the strong rally in recent months resulted in the drops of indices ranging from less than 1 percent (USA), to about 4 percent and more (Poland, France, Spain, Mexico).

Data from the euro zone confirmed the worries on many levels about the economic activity in the biggest markets other than Germany.

The PMI indices measuring sentiment among managers or the GDP growth rates for Spain, Italy and France proved the fears of the ECB correct, meaning that the record low cost of money is here to stay for a long time.

Investors on the Warsaw Stock Exchange lost confidence and were selling equities at one of the most dynamic rates in the world. None of the stocks from WIG20 managed to defend themselves

Major indices WIG

52,727.52 (December 6 close)

WIG30

2,618.11 (December 6 close)

06.12

05.12

04.12

03.12

29.11

02.12

28.11

27.11

26.11

25.11

22.11

21.11

20.11

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

2,200

25.11

44,000

22.11

2,320 21.11

46,400

20.11

2,440

19.11

48,800

18.11

2,560

15.11

51,200

14.11

2,680

13.11

53,600

12.11

2,800

08.11

56,000

19.11

52-week low: 2,286.99

15.11

Change year to December 6: -0.24%

18.11

52-week low: 43,159.57

14.11

52-week high: 2,760.93

Change year to December 6: 9.60%

13.11

Change for the week: -3.97%

12.11

52-week high: 55,246.40

08.11

Change for the week: -3.61%

Top 5 INTAKUS PLAZACNTR CORMAY REINHOLD BNPPL

Closing 0.02 0.33 8.80 0.71 90.00

% change (week) 52-week high 100.00 0.02 22.22 1.72 22.05 16.63 20.34 1.19 15.38 150.00

52-week low 0.00 0.24 6.51 0.22 45.10

Top 5 ALIOR BORYSZEW GTC ENEA BOGDANKA

Closing 76.85 0.55 8.34 15.80 135.65

% change (week) 2.47 0.00 -0.60 -1.62 -1.70

52-week high 100.50 0.64 10.25 16.20 140.00

52-week low 59.50 0.38 6.58 11.70 92.95

Bottom 5 BIOTON MISPOL SKYSTONE ORCOGROUP SADOVAYA

Closing 0.02 1.35 0.03 7.40 0.54

% change (week) -33.33 -28.95 -25.00 -21.19 -20.59

52-week low 0.02 0.70 0.02 7.07 0.48

Bottom 5 PGE EUROCASH GRUPAAZOTY LOTOS TAURONPE

Closing 17.37 46.95 68.85 37.36 4.84

% change (week) -7.21 -6.62 -6.33 -6.22 -6.02

52-week high 19.51 66.56 88.50 45.45 5.39

52-week low 13.35 41.82 48.60 32.97 3.67

52-week high 0.10 2.40 0.26 12.40 2.50

2,479.16 (December 6 close)

mWIG40

52-week high: 2,628.36

Change for the week: -2.41%

52-week high: 3,572.51

Change year to December 6: -5.60%

52-week low: 2,177.02

Change year to December 6: 33.33%

52-week low: 2,471.39

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

25.11

22.11

21.11

20.11

19.11

18.11

15.11

14.11

13.11

12.11

Adam Narczewski X-Trade Brokers DM SA

08.11

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

3,200

25.11

2,300

22.11

3,280 21.11

2,380

20.11

3,360

19.11

2,460

18.11

3,440

15.11

2,540

14.11

3,520

13.11

2,620

12.11

3,600

08.11

2,700

Central banks in action

3,424.74 (December 6 close)

Change for the week: -4.08%

3 600

sWIG80

14,485.48 (December 6 close)

NewConnect

350.80 (December 6 close)

SOURCE: WSE

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

25.11

22.11

21.11

20.11

06.12

05.12

04.12

03.12

02.12

29.11

28.11

27.11

26.11

25.11

320

22.11

14,000

21.11

328

20.11

14,400

19.11

336

18.11

14,800

15.11

344

14.11

15,200

13.11

352

12.11

15,600

08.11

360

19.11

52-week low: 296.29

18.11

Change year to December 6: 5.60%

15.11

52-week low: 10,040.08

14.11

52-week high: 355.36

Change year to December 6: 37.55%

13.11

Change for the week: -0.45%

12.11

52-week high: 15,093.78

08.11

Change for the week: -3.55%

16,000

from losses – PGNiG was a top performer, decreasing by just 0.7 percent, while mBank and energy stocks like PGE and Tauron plunged by about 6 percent in 5 days.

This week investors on the global markets will probably concentrate on some combination of the following factors: the technical strength of global equities markets and the rising risk for a continuation of the global sell-off; speculation about the anticipated Fed’s action or rather inaction in the months to come; an approaching deadline for American politicians to come to an agreement on the budget bill.

The balance seems to be skewed toward the negative side, but it’s good to remember that about the calendar effect called the Santa Claus rally which this year can be supported by a broad stream of capital flowing from retail investors to investment funds. ●

Currency report

Other indices WIG20

19

Currency markets were anxiously waiting this past week for central banks to act. We were expecting a more dovish statement from ECB traders than what Mario Draghi said – no plans for another round of LTRO, no cut in the deposit rate, not to mention any currency interventions.

In Poland there were big discussions about the pension fund reform, but traders ignored it.

Volatility increased on the z∏oty market after the Monetary Policy Council’s (RPP) decision to keep interest rates unchanged at 2.5 percent.

RPP and central bank chief Marek Belka stated that in the economy’s current state, the RPP will keep interest rates unchanged until the second half of 2014.

Inflation is low and it does

not seem it will increase any time soon. In this case, the z∏oty much depends on what is going on in the global economy. The EUR/PLN began the week in the z∏.4.20 and declined below z∏.4.19 after the RPP press conference. It rebounded and finished the week close to z∏.4.19.

The more volatile USD/PLN experienced a stronger move – a decline from zl.3.10 to zl.3.07. All these are small movements, taking into account the historical volatility of the z∏oty market. For the next couple of weeks, the situation should not change, although the end of the year might be more volatile, as many investment funds and banks will be reevaluating their currency portfolios. ●

currency rates 3.0021

3.0145 04.12

SOURCE: NBP

3.0133 03.12

3.0213

3.0148 02.12

06.12

3.0163 29.11

0.0933

0.0932 06.12

3.00

05.12

100JPY/PLN

3.03

05.12

0.0932

0.0929 04.12

03.12

02.12

29.11

0.0930

3.4218

3.4238 06.12

0.092

0.0932

RUB/PLN

0.094

05.12

3.4182 04.12

3.4179 03.12

02.12

3.4084 29.11

5.0474

5.0168 06.12

3.40

3.4079

CHF/PLN

3.43

05.12

5.0588 04.12

5.0806 03.12

5.0811 02.12

5.0348 5.00

29.11

3.0673 06.12

3.0870

3.0916

GBP/PLN

5.09

05.12

03.12

04.12

3.0965 02.12

3.0846 3.06

29.11

4.1925 06.12

4.1974

3.0973

USD/PLN

3.10

05.12

4.2011 04.12

4.2032 03.12

02.12

4.1998 29.11

4.18

4.1965

EUR/PLN

4.21

THE LIST

DECEMBER 9-15, 2013

www.wbj.pl

21

Corporate Services

Direct Marketing Companies Ranked by revenue from direct marketing in 2012

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Services offered S Retail Personalized Telemarketing / Revenue from promotions / print / Market direct Total revenue Direct Loyalty mail / research / marketing (z∏. (z∏. mln) Mass mail / programs // Advertising mln) E-marketing Fulfillment agency / Database Social media sale 2012 / 2011 / 2010 / 2009

Rank

A guide to Polish business and industry

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

1

Contact Center Sp. z o.o. ul. Muszkieterów 15A, 02-273 Warsaw 22 535-7900/22 535-7910 info@contactcenter.pl www.contactcenter.pl

185.9 246.5 276.0 218.6

185.9 246.0 276.0 218.6

✓ ✓

✓ -

✓ ✓ ✓ ✓

Organization and handling of contests and loyalty programs; recording studio; business advisory

mBank; ING; Loyalty Partner; Makro Cash & Carry; Grupa Orange

368 1999

TP Invest None

Jakub K∏oczewiak

2

Emerson Polska Sp. z o.o. ul. Belzacka 176/178, 97-300 Piotrków Trybunalski 44 649-0753/44 649-0641 info@emerson.pl www.emerson.pl

55.0 40.0 35.0 27.5

190.0 180.0 170.0 158.0

✓ ✓ ✓ ✓

✓ ✓ -

-

Multichannel campaigns; personalized web pages; scratch-cards printing

Lukas Bank; Multimedia Polska; Eurobank; Real; UPC

480 1991

WND None

Jerzy Paluch

3

ContactPoint Sp. z o.o. ul. Marynarska 11, 02-674 Warsaw 22 541-9090/22 541-9091 info@contactpoint.pl www.contactpoint.pl

31.7 26.9 26.7 18.8

31.7 26.9 26.7 18.8

-

✓ -

✓ ✓ ✓

WND

WND

690 1997

Communication One Consulting - 100% None

Jaros∏aw Szpryngwald; Micha∏ Karzel; Ewa Czarnecka

Call Center Poland SA ul. Marynarska 11, 02-674 Warsaw 22 444-0444/22 444-0400 info@ccp.com.pl www.ccp.pl

26.8 37.4 34.4 36.3

26.8 37.4 34.4 36.3

✓ ✓ ✓ -

✓ ✓ -

✓ ✓ ✓

Multilingual call center

Communication One Consulting - 100% None

Jaros∏aw Szpryngwald; Micha∏ Karzel; Ewa Czarnecka

5

Polskie Centrum Marketingowe Sp. z o.o. ul. Mangalia 4, 02-758 Warsaw 885-485-250 pcm@pcm.pl www.pcm.pl

10.0 20.0 WND 20.5

10.0 20.0 WND 21.2

✓

✓ ✓

✓ ✓ ✓

Consulting; advisory

SAZ Dialog Europe; ING; Energa; Bon Prix; Millward Brown SMG/KRC

9 1994

Jan Za∏´cki - 99%; Bo˝ena Za∏´cka - 1% None

Jan Za∏´cki

6

Trygon Sp. z o.o. ul. Czardasza 16, 02-169 Warsaw 22 212-8061/22 212-5749 biuro@trygon.net.pl www.trygon.net.pl

6.6 7.4 6.8 6.2

6.6 7.4 6.8 6.2

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓

Contests; sales promotions

Zielona Budka; Bosch; Unilever

WND 2006

WND None

Magda Pietkiewicz

7

Pro Duct By Business Friends Sp. z o.o. ul. Jankowska 10, 02-129 Warsaw 22 668-7773/22 668-8369 info@product.pl www.product.pl

5.8 9.0 8.0 8.1

6.2 9.7 8.5 8.4

✓ ✓ ✓

✓ ✓ -

✓ ✓ -

15 1998

Miko∏aj Janicki - 90% WND

Miko∏aj Janicki

8

VERCOM Sp. o.o. ul. Abpa Antoniego Baraniaka 88, 61-131 Poznaƒ 61 622-2400/61 622-2401 biuro@redlink.pl www.redlink.pl

3.7 2.3 WND WND

WND WND WND WND

✓

✓ ✓

-

Competitions/SMS lotteries; dynamic geolocation

Arvato; Rzeczpospolita; Enea; Auchan; Mercedes

20 2005

WND

Krzysztof Szyszka

9

Grupa Dominanta Base & Direct ul. Canaletta 4, 00-099 Warsaw 22 827-7512/22 827-8008 info@dominanta.com.pl www.dominanta.com.pl

2.0 1.8 2.0 WND

WND WND WND WND

✓ ✓ ✓ -

✓ ✓ ✓ ✓

✓ -

Specialised printing; personalized prints

Marks & Spencer

7 2004

WND

Agnieszka Waszkiewicz

Acxiom Polska Sp. z o.o. ul. Wo∏oska 3, 02-675 Warsaw NR 22 233-2000/22 233-2409 zapytania@acxiom.com www.acxiom.pl

WND WND 5.8 WND

WND WND 5.8 WND

✓ ✓

✓

✓ ✓

Database enrichment; data deduplication; data cleansing; database connectivity; database analysis and segmentation

WND

WND 1998

WND

Agata SzeligaStaszkiewicz

arvato services Polska, Bertelsmann Media Sp. z o.o. branch ul. Kolejowa 150, 62-064 Plewiska k. Poznania NR 61 652-8800/61 651-7610 office@arvato.pl www.arvato.pl

WND WND WND WND

157.4 162.0 161.0 145.0

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

Contact center; back office; advanced IT solutions; financial services (factoring, monitoring and collection of receivables, financial BPO); e-commerce; document management

P4; Polkomtel; Microsoft; Vodafone

2000 1994

None Bertelsmann SE&CO. KGAA 100%

Janusz Jankowiak

Cursor SA ul. Poleczki 23, 02-822 Warsaw NR 22 335-2424/22 335-2425 biuro@cursor.pl www.cursor.pl

WND WND WND WND

WND WND WND WND

✓ ✓ -

✓ ✓ ✓ -

✓ -

Marketing materials logistics; events; gadgets

Unilever; Coty; Lindt; Tesco; Mars

2400 2001

Outsourcing Experts - 100% None

Artur Wojtaszek

Havas Engage Warsaw Sp. z o.o. ul. Marynarska 11, 02-674 Warsaw NR 22 444-0555/22 444-0556 engage@havasww.com www.havasengage.pl

WND WND WND WND

WND WND WND WND

-

-

✓ ✓ ✓

Experimental marketing; event marketing; shopper and retail marketing; graphic design

Coca-Cola; Samsung; Unilever; Storck; Auchan

40 1998

WND Havas

Ma∏gorzata Begier

Marketing House Sp. z o.o. ul. Marynarska 11, 02-674 Warsaw NR 22 444-0888/22 444-0889 office@marketing-house.pl www.marketing-house.pl

WND WND WND WND

WND WND WND WND

-

-

✓ ✓ ✓

Mobile marketing; analytical CRM; consulting

PMPL; Mars; L'Oreal; Carlsberg; Volvo

55 1998

WND Havas

Przemys∏aw Or∏owski

Voice Contact Center Sp. z o.o. ul. Szturmowa 2, 02-678 Warsaw NR 22 255-2000/22 255-2222 info@voicecc.pl www.voicecc.pl

WND WND WND WND

WND WND WND WND

-

-

✓ ✓ ✓

Full spectrum of sales-related services (end2end); customer service; debt collection by phone

Netia; Allianz; Wydawnictwo G+J RBA; NC+; Amber Energia

570 2009

Outsourcing Experts - 85% WND

Adam Kotrych

4

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in April 2013. Number of employees and ownership structure are as of April 2013. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. Reported in cooperation with Polish Marketing Association.

Other

Selected clients

Total number of employees / Year founded in Poland

Ownership: Polish / Foreign

WND

Goodyear Dunlop Tires Polska; HP Polska; Communications campaigns; integration and Cisco Systems Poland; Kristensen-Group; Teka data analysis Polska

419 1997

Top local executive / Title

President

Vice President

President; Board Member; Proxy

President; Board Member; Proxy

President

Managing Director

President

President

Managing Director

President

General Director

President

Executive Director

Managing Director

President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to +48 22 257-7500, or via e-mail to online@bookoflists.pl. Copyright 2013, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

22

SPORTS

www.wbj.pl

DECEMBER 9-15, 2013

Soccer

Soccer

Lewandowski among the best

Boruc on the sidelines

For the first time the Polish striker was named among the best European players by UEFA Despite not winning a single trophy and disappointing in Polish national team matches, this was probably the best season for Robert Lewandowski when it comes to individual performance. As a result, UEFA has listed the Polish striker among candidates in its annual Team of the Year poll, making him the first ever Polish player to be in the running.

Mr Lewandowski was listed among 12 forwards, although only two of them

will make it into the Team of the Year. This will be a difficult task for Mr Lewandowski, as his opponents include Lionel Messi, Cristiano Ronaldo and Zlatan Ibrahimovic among others.

Mr Lewandowski is also on the shortlist of 23 players nominated for the FIFA Ballon d’Or, which is awarded to the best player in the world. He is not the first Pole to be nominated for it, however, as both Kazimierz Deyna and Zbigniew Boniek came in third in 1974 and 1982 respectively.

Fans can vote for the Team of the Year until January 9, while journalists, coaches and national team captains have already cast their votes and

the winner will be announced in mid-January.

Although Mr Lewandowski’s chances to win the aforementioned distinctions are slim, it’s clear that he has achieved the status of global stardom. This makes his decision to leave his current club – Germany’s Borussia Dortmund – after the end of the current season even more exciting. He will surely receive offers from the biggest clubs in Europe. Currently most pundits link him with a move to Dortmud’s arch nemesis Bayern Munich.

Mr Lewandowski will most likely announce his decision in January.

Jacek Ciesnowski

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 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 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 Rynek Starego Miasta 19/21 www.napiorkowska.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 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 Al. 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.pl Historical Museum of Warsaw Rynek Starego Miasta 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.wilanow-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

The Southampton goalkeeper broke his hand during a Premier League game against Chelsea (lost by the Saints 1-3), which means Artur Boruc could be out for as long as six weeks recovering from the injury.

Some say it’s perfect timing for Mr Boruc, as during the last few weeks he has made some serious blunders, and now he will have time to recover from them psychologically.

It all started at the beginning of November, when just 13 seconds after the referee blew the first whistle in a match against Stoke, the opposition keeper put the ball past the Polish goalie into the back of the net.

Such goals happen very rarely and are often blamed on the keeper that let it happen.

This time most pundits blamed the defenders, who just stood there observing the ball and called the goal “a fluke.” Ultimately the game ended in a 1-1 draw.

But Mr Boruc couldn’t escape the blame after the game against Arsenal at the

SHUTTERSTOCK

Robert Lewandowski

SHUTTERSTOCK

Poland’s national team goalkeeper will be out for six weeks due to a broken hand

Artur Boruc

end of November. The Polish goalkeeper tried to dribble past Arsenal’s Olivier Giroud in his own penalty area, only to be robbed by the French striker who flicked a shot into an empty net for the opening goal (Arsenal won the game 2-0).

The series of fumbles earned him the nickname “prince of clowns.”

Despite such blunders, Mr Boruc remained Southampton’s starting goalkeeper, mostly because the team’s reserve goalie, Kelvin Davis, is also sidelined with an injury (the

team’s third keeper, Argentinian Paulo Gazzaniga will most likely deputize for Mr Boruc).

Nevertheless, the Polish keeper is highly regarded by the club’s managerial staff and is one of the reasons why the Saints are performing better than expected this season so far (currently in seventh position in the Premier League table). It looks like a short break can only do the Polish international good giving him time to calm his nerves and come back with a vengeance.

Jacek Ciesnowski

LIFESTYLE

DECEMBER 9-15, 2013

www.wbj.pl

23

Exhibition

Classical music

Warsaw under construction

Christmas music from the past

Profession: Architect Ongoing until Jan 6, 2014 Historical Museum of Warsaw Rynek Starego Miasta 28-42

A glimpse of the architect’s world 1939, architects and urban planners seemed to be less in conflict with the state, which raises a question on their relationship today. Is it true that Poland’s post-1989 economic

freedom has led to a lack of spacial planning when constructing new buildings? Visitors will be able to answer that question for themselves while taking in a historic

overview of how the city has become what it is today.

John Beauchamp

For more information log on to: artmuseum.pl/en/wystawy/zawod-architekt

The biggest names in early music will visit Gdaƒsk for the third time for the Actus Humanus festival. Early music, according to “The New Grove Dictionary of Music and Musicians,” includes “any music for which a historically appropriate style of performance must be reconstructed on the basis of surviving scores, treatises, instruments and other contemporary evidence,” which usually means any music that was composed between 500-1760 (the end of the baroque era).

The festival’s intention is to present musical pieces with a Christmas theme performed and interpreted by the biggest names of the genre. This year’s edition includes: Italian and German Christmas masterpieces interpreted

by Maria Cristina Kiehr and Concerto Soave, medieval

Franco-Flemish songs performed by Marcel Peres and Ensemble Organum, Bach’s Goldberg Variations and Renaissance and Baroque carols interpreted by Huelgas Ensemble.

Organizers have planned seven concerts for seven straight days in some of the most appropriate venues for this genre of music – two 15th century churches and the 14th century Artus Court, a former home of the Brotherhood of St. George and a meeting place for nobles and a seat of courts.

Jacek Ciesnowski

Ticket prices vary depending on the concert

COURTESY OF ACTUS HUMANUM FESTIVAL

COURTESY OF THE MUSEUM OF MODERN ART IN WARSAW/BARTOSZ STAWIARSKI

Following the wartime destruction of Warsaw, the new regime in the country had a blank sheet with which to propose their new vision for the capital city. While Warsaw still remains a bastion of socialist-realist architecture in this part of Europe (despite strong competition from Nowa Huta, built on the outskirts of Kraków), Poland’s capital is now one of the most versatile in terms of eclectic architectural styles.

The exhibition takes visitors into the everyday work of architects, and underlines their importance in making up the fabric of the city. After all, before any building is constructed, it has to be designed in the silence of an architectural studio, clients have to be met and decisions have to be taken. “This is what interests us,” the exhibition’s curators say.

The exhibition, however, goes further back than World War II, and looks at the relationship between architects and state authorities. Before

Actus Humanus Festival December 9-15 Gdaƒsk, various locations

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