WBJ #28-29 2013

Doing business in Nigeria

Finance Minister Jacek Rostowski says a planned increase in Poland’s budget deficit will stimulate the economy 3

Samuel Jimba, Nigeria’s ambassador to Poland, discusses business opportunities for Polish companies in his country’s booming economy 14

WWW.WBJ.PL

Government wants bigger deficit

VOLUME 19, NUMBER 28-29 • JUL 22 – AUG 4, 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

Unwelcome in the UK COURTESY OF ORCO PROPERTY GROUP

REAL ESTATE

As the British economy struggles, the mood is now turning increasingly nasty against immigrants. How are Poles being affected?

• Z∏ota 44 apartments • Warehouses in Upper Silesia • Warsaw river bank development 15-17

12-13

InPost goes global WBJ talks worldwide expansion plans for postal services firm InPost with the CEO of its parent company, Integer Group 7

Plus: • PHO considers IPO • PZU looks to banking • Inflation at record low

SHUTTERSTOCK

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-7 Interview . . . . . . . . . . . . . . . . . . .8-9 Finance & Economics . . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-13 International . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

A party divided

Just not kosher

Rafa∏ Grupiƒski, head of Civic Platform’s parliamentary caucus, discusses his party’s loss of popularity and its strategy for turning things around 8-9

A ban on ritual slaughter is turning into a diplomatic nightmare for Poland

3

NEWS

www.wbj.pl

IN THE SPOTLIGHT

Numbers in the News

Warsaw Uprising

z∏.16 billion is the planned increase in Poland’s budget deficit this year.

Polish mountain climber and head of the Polish Winter Himalaism program, Artur Hajzer, died in an accident while climbing the Gasherbrum I peak (8,068 meters) in the Karakoram range of the Himalayas, on the border of China and Pakistan. Mr Hajzer fell from the mountain slope during his ascent.

Poland’s Defense Ministry is planning to spend some z∏.8 billion on 70 helicopters. Companies that have placed their bids in the tender are European sector giant Eurocopter, Sikorsky Aircraft (which owns PZL Mielec), as well as AgustaWestland and its Polish subsidiary PZL Âwidnik. Deputy Defense Minister Waldemar Skrzypczak has said that involving Polish industry in the production process is a must.

Polish banks biggest in region Five Polish banks placed in the top 10 in a ranking of Central European banks compiled by sector research firm Inteliace.

Poland’s largest lender, state-owned PKO BP, was the largest bank in the region. Bank Pekao took the second place. Bank Zachodni WBK (owned by Santander) came in sixth.

Other Polish banks in the ranking were ING Bank Âlàski and BRE Bank. ●

is how many people in Poland use the internet, according to NetTrack.

40% Quote of the Week “After this vote my mind was sad but my heart was joyous.”

Prime Minister Donald Tusk, after a government-sponsored bill that would have re-legalized ritual slaughter in Poland was defeated in a vote in parliament.

Figures in focus Strangers in strange lands Number of foreign citizens in selected EU states (% of total population, 2012) 50 43.8

40 *Highest in EU **Lowest in EU

30 20

20

16.3 10.6

10

9.1

7.9

7.6

5.9

4.0

Is the transatlantic trade pact bad for Europe?

Many are hailing a potential US-EU free trade agreement as beneficial to both sides. Log on to WBJ.pl this week for a different view, as professor Zaki Laidi argues that Europe stands to lose from the deal.

0.1

Cz Franc ech e Re pu blic Hu ng ary Po lan d* *

It d K aly ing do m ite Un

Jacek Ciesnowski

On WBJ.pl

2.1

0

lan d Ge rm an y

Polish authorities were also unaware that during the Teheran Conference at the end of 1943, British Prime Minister Winston Churchill and US President Franklin Roosevelt had agreed with USSR leader Joseph Stalin that Poland would be placed within the Soviet sphere of influence once the Nazis were defeated. It was for that reason that Soviet troops waited at the eastern bank of the Vistula River while the uprising raged on, waiting for both sides to bleed themselves out. The result was that it was then much easier for the Soviets to install leaders of their choosing in Warsaw.

Each year, at the exact time of the start of the uprising – 5 pm on August 1 – sirens wail across the country and people stand still in a moment of silence to commemorate those fallen during the ill-fated insurgency.

Ire

planned as a mopping-up operation that would last just a few days turned into a gruesome, 63-day conflict that resulted in hundreds of thousands people killed and 700,000 expelled from the city. Warsaw itself was reduced to rubble.

The Home Army and its allies within Warsaw were about 49,000 men strong, while the German forces numbered just 25,000. However, the Germans were much better equipped, with tanks, artillery and regular resupplies. The insurgents mostly used weapons produced in their own workshops, and the supplies provided by the allies were scarce and infrequent.

The allies didn’t help as much as they could have, mostly because the Soviets, who controlled most of the territory east of Warsaw, prohibited US and UK planes from landing at their airfields and refused to provide them with ground and air support.

*

August 1, 2013 will mark the 69th anniversary of the outbreak of the Warsaw Uprising, a tragic symbol of the Polish insurgency during World War II. Polish resistance forces led by commander Tadeusz “Bór” Komorowski began the operation at exactly 5 pm, which is now known by Poles as “W hour.”

The Polish Home Army resistance fighters, along with the London-based Polish government-in-exile, believed that the uprising would be the last opportunity for Poland to regain its independence. Circumstances seemed to be working in their favor. The German forces were losing battles on both the western and eastern fronts. The Soviet Army was approaching the outskirts of Warsaw. The Polish side also hoped that the allied forces would help them in their efforts.

These plans unraveled quickly, and what was originally

is the share of the vote opposition party Law and Justice would receive if parliamentary elections were held now, according to a July TNS Polska poll.

Cy pru s Lat via

Polish military to buy 70 helicopters

18 million

urg

Poland’s three biggest trade unions: the Forum of Trade Unions, the Solidarity Trade Union and the All-Poland Alliance of Trade Unions said they were prepared for a longterm strike that will start on September 11 in protest against the government. Solidarity leader Piotr Duda said that the protests could last for weeks or even months.

The unions oppose changes to the labor code proposed by the government, which introduce more flexibility for firms in calculating work time.

is how much Poland’s industrial output grew in June, compared to the same period a year earlier.

SHUTTERSTOCK

Unions call for strike in September

3%

bo

Polish mountain climber dies in Himalayas

JULY 22 – AUGUST 4, 2013

Lux em

2

Source: Eurostat

Company index AgustaWestland ......................................2

Noble Securities ....................................20

Amazon ....................................................7

Nokia ......................................................23

Bank Pekao ..............................................2

Nordea ..................................................3, 6

Bank Zachodni WBK ................................2

Nordea Markets ....................................10

BG˚ ..........................................................6

Orco Property Group ..............................15

BNP Paribas ............................................6 BRE Bank ................................................2 BZ WBK ..................................................10

Panattoni ................................................16 PGE ....................................................6, 20 PineBridge................................................7

CBOS ........................................................3 Centrala Zaopatrzenia Górnictwa ..........6

Calendar

Chevron ....................................................5 Dayco ......................................................16

PKO BP ................................................2, 6 Poczta Polska ..........................................7 Polkomtel ................................................6 Polska Grupa Pocztowa ..........................7

July/August

Eurocash ................................................20 ExxonMobil ..............................................5

Polski Holding Obronny ..........................6

JULY 24-25 EOIF GIGACON WARSAW

Facebook ................................................13

Prologis ..................................................16

Goodman Group ....................................15

PZL Âwidnik..............................................2

Google ......................................................7

PZL Mielec................................................2

Grupa Azoty ..............................................6

PZU ..........................................................6

GTC ........................................................20

Rabobank..................................................6

Huta Stalowa Wola ..................................6

Radius Projekt..................................15, 17

IKEA Centre Polska................................15

Ryanair......................................................5

Event:

Location: Web:

One of the biggest IT conferences in Poland.

Representatives of leading companies will present their solutions and propose tools to streamline and automate the management of companies’ activities.

Hotel Novotel Airport, Warsaw Gigacon.org/eoif_warszawa

AUGUST 1 CHARITY BEACH VOLLEYBALL TOURNAMENT Event:

The money raised at the fourth annual edition of this tournament will be donated to the “Our Children” Foundation at the Oncology Clinic of the Children’s Memorial Health Institute. Last year’s event raised over z∏.100,000.

The tournament will be followed by an afterparty.

Location:

La Playa Bar, Warsaw

16-19 PRIDE OF POLAND 2013 AND ARABIAN HORSE DAYS Event:

Location: Web:

Each summer the Janów Podlaski Stud farm, established in 1817, hosts Arabian Horse Days. This year’s event will feature several horse shows, parades and two auctions: the Pride of Poland auction and Summer Arabian Horse Auction.

Janów Podlaski, Poland www.janow.arabians.pl

24-25 AIR SHOW 2013 Event:

Location: Web:

The international air show will be held in Radom for the 13th time. It will celebrate 95 years of Polish aviation.

Radom, Poland Airshow.sp.mil.pl

Inforsys ....................................................7 ING............................................................6 ING Bank Âlàski ......................................2 InPost........................................................7

Samsung ................................................23 Segro ......................................................16 Sikorsky Aircraft ......................................2 Talisman ..................................................5

Integer Group ..........................................7 Inteliace ....................................................2 JEMS Architekci ....................................15 Jones Lang LaSalle................................16

TNS OBOP ................................................3 TNS Polska ..........................................2, 3 TP SA ......................................................17

KGHM......................................................20

Trawnik Producent ................................21

Kompania W´glowa..................................6

Warsaw Chopin Airport......................5, 11

Marathon ..................................................5

Warsaw Stock Exchange....................6, 20

Mennica Polska SKA..............................15

Wizz Air ....................................................5

NetTrack ..................................................2

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

NEWS

JULY 22 – AUGUST 4, 2013

www.wbj.pl

3

Public finances

Prime Minister Tusk announced cuts and legal changes to account for a z∏.24 billion shortfall into state coffers this year In a budget amendment that the government plans to present in August, the deficit will be increased by z∏.16 billion, Prime Minister Donald Tusk said at a press conference in mid-July. This change, along with spending cuts of about z∏.8.5-8.6 billion, is necessary because budget revenues are expected to come in at z∏.24 billion less than was originally expected. The changes mean Poland’s budget deficit for this year will come in at z∏.51.6 billion instead of the z∏.35.6 bil-

ment ministries and will not involve social transfers. As much as z∏.3.3 billion in spending cuts will be borne by the Ministry of National Defense, a source at the ministry told the Polish Press Agency. The Labor Ministry and the Ministry of Culture will reportedly also see significant cuts.

lion originally planned.

“In May and June we observed clear signs of improvement in terms of higher budget revenues. However, these are still insufficient to guarantee that the budget we prepared for this year will be feasible,” PM Tusk explained.

He also added that because the European crisis has an increasing influence on Poland, the government needs to make counter-cyclical moves. “[These moves] are aimed at stimulating the economy in this particularly critical time,” he said. “That is because we believe that 2013 is a critical year and that 2014 … should be a year of revival,” he added.

Mr Tusk assured that the cuts of some z∏.8.5 billion would be made within govern-

Legal changes However, in order to increase the deficit, the government has to change the law first.

According to current legislation, once the debt-to-GDP ratio crosses the 50 percent threshold (which it did last year), the government may no longer increase budget deficit, so without legislative changes the entire missing z∏.24 billion would have to come from cut-

ting budget spending.

At the same press conference, Prime Minister Tusk announced that the government had approved an amendment to the law on public finances. The amendment would suspend legally mandated sanctions for breaching the 50 percent debtto-GDP threshold in 2013 and 2014. The amendment will also introduce a new spending rule which will allow the government to increase expenditure above the current limit of 1 percent plus inflation. The Finance Ministry wants the new rule to become binding by the end of 2013.

Decreased risk Commenting on the changes, Piotr Bujak, Nordea’s chief economist in Poland, said,

International

COURTESY OF WIKIMEDIA COMMONS

As deficit increases, government moves to change fiscal rules

Prime Minister Tusk said the moves are aimed at “stimulating the economy in this critical time” “While the intention to make Polish public finances less procyclical is positive, doing it in a way that yet again undermines credibility of earlier established fiscal rules is negative.”

However, overall, the changes would help Poland’s economy, he said. “All in all, the planned shape of the budget revision (and public finance law amendment)

decreases risk of [a] negative, pro-cyclical impact of public finances on [the] economic situation in Poland. This supports our forecast that GDP growth will ... accelerate in the remainder of this year and approach its potential level of 3 percent during 2014.”

Kamila Wajszczuk, Andrew Kureth, Beata Socha

Politics

Polish-Israeli relations strained Ruling party over ritual slaughter ban tightens gap in polls Ritual slaughter, practiced mostly by Jewish and by Muslim communities as part of their religious traditions, remains banned in Poland, after the lower chamber of parliament, the Sejm, recently voted against legislation that would have re-legalized the custom. Slaughtering animals without first stunning them has been against the law in Poland since December of last year, when Poland’s Constitutional Tribunal sided with animal-rights activists and ruled the practice unconstitutional.

The vote stirred controversy on an international scale.

Israel’s Ministry of Foreign Affairs called the ban in Poland “totally unacceptable.”

“We call on the Polish parliament to review its decision and we expect the relevant parties to find a way to prevent this brazen blow to the religious tradition of the Jewish people,” the Israeli Foreign Ministry wrote in a statement.

Prime Minister Donald Tusk called the Israeli reaction “inappropriate.” In a rare show of like-mindedness, the leader of Poland’s opposition party, Jaros∏aw Kaczyƒski, agreed with the prime minister’s take on the matter and added that he was strongly

opposed to ritual slaughter on moral grounds.

The Israeli Foreign Ministry summoned Poland’s ambassador for discussions on the matter. The ambassador later said he was asked to provide an explanation for the ban. The following day, the Israeli ambassador to Poland was invited to the Polish Foreign Ministry, but the details of the meeting were not disclosed.

The ban was also strongly criticized by Poland’s chief rabbi, Michael Schudrich, who said he would resign from his function if the ban remains in place.

“I cannot imagine serving as chief rabbi in a country in which the rights of the Jewish religion are curtailed, as I would not be able then to serve properly my coreligionists,” Mr Schudrich wrote on his Facebook page. “If the legality of ritual slaughter isn’t reinstated in a legitimate way, I will be obliged to give up my function.”

The matter quickly escalated, with representatives of Europe’s Jewish communities gathering in Brussels to formulate a coordinated strategy in view of the ban. The Brussels meeting was convened because European Jewry had arrived “at a position which is simply untenable for the Jewish community in Poland and we must now act quickly to rectify this,” said Rabbi Pinchas Goldschmidt, president of Conference of European Rabbis.

After a raft of voter surveys that showed opposition Law and Justice ahead of Civic Platform, the latter now seems to be making up for lost ground

KAMIL PIKLIKIEWICZ/EAST NEWS

Poland’s restrictions on ritual slaughter have been strongly criticized by Israeli leadership, as well as Jewish and Muslim religious leaders

Poland’s chief rabbi, Michael Schudrich, has said he would have to leave his post if the ban is upheld Poland’s small Muslim community has voiced its displeasure as well. Mufti Tomasz MiÊkiewicz, a prominent Polish Muslim leader, said that if the ban remains in force, his community will have to rely on individual farmers who will illegally perform animal slaughter according to Muslim religious rules.

Search for compromise However, the legality of ritual slaughter, or lack thereof, is still a matter of discussion.

Administration and Digitization Minister Micha∏ Boni has asked the Government Legislation Center for an opinion on whether religious communities are still allowed to practice ritual slaughter

for their own purposes. Such an exception would be in line with a more specific law regulating the relations between the state and religious minorities.

Mr Boni has expressed hope that the issue can be resolved amicably. “I think that we are lacking sufficient sensitivity in this big debate, which would allow us to reconcile the expectations of those who want to defend animals … with the needs of religious communities,” he was quoted

by Polish Radio as saying.

On July 22 Minister Boni was scheduled to meet with both Mr Schudrich and Mr MiÊkiewicz to discuss potential compromises.

Beata Socha

In June a spate of opinion polls showed Poland’s largest opposition party, Law and Justice (PiS), ahead of the ruling Civic Platform (PO). The results sparked plenty of speculation as to whether PiS was poised to return to power, having led a governing coalition from 20052007.

PiS has also scored some significant victories in local elections in recent months, including a hotly contested mayoral vote in the northern city of Elblàg, where PO leader Prime Minister Donald Tusk and his PiS counterpart Jaros∏aw Kaczyƒski both personally campaigned for their parties’ candidates.

In the closely-watched election, Jerzy Wilk of PiS won 51.74 percent of the vote, beating out PO’s candidate El˝bieta Gellert who garnered 48.26 percent. Elblàg lies in a region where the ruling party has traditionally enjoyed significant support and thus Mr Wilk’s victory was interpreted by some as a sign that PiS could be riding a wave of dissatisfaction with the government that would secure them victory in the next parlia-

mentary elections, scheduled for 2015.

However, two polls conducted in July seem to suggest that PO may now be catching up.

The latest survey by pollster TNS OBOP had PiS with 30 percent support, while PO was behind by only four points at 26 percent. While support for PiS remained unchanged from June, according to this particular poll, PO improved its standing by 3 percentage points.

Roughly a fifth (19 percent) of those polled said they would take part in the next parliamentary elections but were unsure who they would vote for.

Meanwhile a poll by CBOS conducted in July showed PiS with 26 percent support and PO snapping at its heels with 24 percent. According to this survey, PiS was down 1 percentage point while PO’s support had risen by the same amount, compared to the previous poll. A third July voter survey, carried out this time by TNS Polska, had PiS at 40 percent and PO at 34 percent. That is a wider margin than in the other two polls, but it still showed PO improving – PiS and PO had received 30 percent and 23 percent respevtively in the previous survey.

However, it is next year’s scheduled elections to the European Parliament as well as nationwide local government polls that will constitute the first real tests of popularity for Poland’s two largest parties.

Remi Adekoya

4

NEWS

www.wbj.pl

JULY 22 – AUGUST 4, 2013

International

Priest chides Church, stirs controversy

Rotten eggs

A popular priest has been removed from his parish after criticizing the Church and accusing an archbishop of antiSemitism Father Wojciech Lemaƒski, who accused his superior, Archbishop Henryk Hoser, of going on an anti-Semitic rant in 2010, has been dismissed from his position as parish priest by the controversial archbishop.

Father Lemaƒski said his problems with his superiors began when he demanded the Archbishop apologize to him for asking whether he was circumcised, and therefore Jewish. However, the official reason given for his dismissal was his “insubordination” over the Church’s stance on the in vitro fertilization procedure.

Father Lemaƒski had publicly criticized the Roman Catholic Church in Poland’s opposition to the procedure as a “danger” to humanity.

“In the document prepared by the [Church’s] bioethics commission, it states that ‘a

political compromise is possible when it serves the greater good,’ but the aim is to render illegal the in vitro procedure,” wrote Father Lemaƒski on his blog. “With such a negotiating position, it is difficult not only to imagine a compromise, but even an ordinary discussion on the topic,” he added.

On July 5, Archbishop Hoser, who heads the bioethics commission, removed Father

“The Church’s aim is to render illegal the in vitro procedure.”

Lemaƒski from his post as parish priest in the village of Jasienica, about 34 kilometers northeast of Warsaw. Archbishop Hoser announced the 53-year-old priest would be granted early retirement.

Tensions escalated, however, when Father Lemaƒski refused to leave his parish until his appeal to the Vatican against the archbishop’s decision had been heard. His

parishioners also supported him, saying they did not want him to go.

Those supporters initially prevented his replacement from entering the parish. However, Father Lemaƒski later backed down and said he would accept the archbishop’s decision to leave. Still, he refused to move into the retirement home he had been assigned and a compromise was reached whereby Father Lemaƒski can still perform mass.

Meanwhile, the archbishop’s spokesperson denied he ever made the anti-Semitic statements.

The incident is not the first time Archbishop Hoser has encountered controversy. A Polish journalist wrote a book which claimed that while in Rwanda in the mid-1990s the archbishop had supported the appointment of Hutu priests who were sympathetic to the ongoing genocide of the Tutsis.

In response to the accusations, the archbishop said, “Of course there were priests who sympathized with one side or the other. That is natural.”

Remi Adekoya

One man’s egging of the Polish president reveals the sometimes strained nature of Polish-Ukrainian relations In mid-July president Bronis∏aw Komorowski visited Ukraine to commemorate the 70th anniversary of the Volhynia massacre. During the commemoration ceremony, a 20year-old Ukrainian man smashed an egg on Mr Komorowski shoulder. While no one was hurt in the assault, the incident left a stain on Polish-Ukrainian relations.

It took the Ukrainian foreign ministry two days to condemn the incident, but the diplomatic shortcomings on the Ukrainian part did not end there. While the egging was the act of a single individual, Kiev’s official delegation to the commemoration of the Volhynia massacre was also somewhat lacking. With Ukrainian President Viktor Yanukovych “otherwise engaged,” President Bronis∏aw Komorowski’s counterpart at the ceremony was Kostyantyn Gryshchenko, a deputy prime minister.

Ukraine and Poland have

COURTESY OF WOJCIECH GRZEDZINSKI/KPRP

The Catholic Church

President Bronis∏aw Komorowski

had a long and complicated history, some of which still haunts relations between the neighboring countries. The massacre, which was being commemorated in Lutsk, in northwestern Ukraine, took place in 1943, while the ethnically mixed Volhynia region was under Nazi occupation. The purges, carried out by the Ukrainian Insurgent Army, claimed the lives of up to 100,000 Poles, including women and children.

The 1943 massacre still causes difficulties in relations between the two countries. To avoid straining the relations further, Poland’s lower house of parliament, the Sejm, voted to designate the massacre “ethnic cleansing bearing the hallmarks of genocide,” rather than an

outright “genocide,” as some Polish right-wing politicians had demanded.

At the ceremony itself, President Komorowski diplomatically avoided bringing up the issues that divide the countries the most. He emphasized that tightening relations between Ukraine and Europe, and consequently loosening Ukraine’s ties to Moscow, are in the best interests of both sides.

“We should remember that whenever Polish and Ukrainian people have fought, it was always a third party who came out on top, one that has always threatened our independence and freedom,” Mr Komorowski said at the ceremony in Lutsk.

Jacek Ciesnowski

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BUSINESS

JULY 22 – AUGUST 4, 2013

www.wbj.pl

5

Shale gas

Airlines

Wizz Air won’t return to Modlin Chevron calls for more dialogue Modlin’s management has been putting in extra effort attracting new customers and winning back former ones, offering them various incentives and fee reductions.

“A year ago, even though the airport was not exceptionally well-equipped, airlines did everything to be the first to announce their operations from Modlin. Now the negotiations with airlines are taking surprisingly long,” Edyta Miko∏ajczyk, an advisor to the airport’s management told the Polish Press Agency, adding that with the new incentives, Wizz Air would have saved z∏.20 million a year in passenger fees.

Katarzyna Rybnik

Wizz Air said that it has “lost confidence” in Modlin

on shale gas regulations The statements come amid industry criticism of draft legislation US energy giant Chevron plans to continue its shale gas exploration activities in Poland, but would like the government to be more open to dialogue with investors, the company’s top official in Poland said in mid-July.

“We would like the opportunity to continue to have dialogue about some of the issues that are going forward in the bill,” John Claussen, Chevron’s country manager for Poland, told Reuters in an interview. He was referring to a draft regulation on hydrocarbon extraction recently prepared by the Polish Ministry of Environment and submitted to the government for approval in June.

In early July the Polish Exploration and Production Industry Organization (OPPPW) issued a statement criticizing parts of the draft law.

The organization claims some of the regulations will increase investment risk.

Specifically, the OPPPW questioned proposed rules

SHUTTERSTOCK

Hungarian low-cost airline Wizz Air has confirmed that it will not return to scheduling flights in and out of Modlin airport, located some 30 kilometers outside of Warsaw. The airline has been servicing its Warsaw routes out of the city’s Chopin Airport ever since Modlin closed in December last year due to cracks in its runway.

“We have lost confidence in Modlin,” said Jozsef Varadi, CEO of Wizz Air. “I am glad that I can promise our passengers and crew an end to the uncertainties and unexpected changes caused by Modlin airport’s numerous shortcomings,” he added.

Despite lower fees (z∏.26 per passenger at Modlin, compared to z∏.60 at Warsaw Chopin Airport), Wizz Air said it was not interested in moving back to the smaller airport, citing its lack of proper equipment. Modlin’s equipment issues led to many flights being delayed or rerouted to Warsaw Chopin Airport whenever the weather conditions were poor.

For its part, Modlin has

announced that it will install an ILS system (a safety guidance system for landing aircraft), which it says should resolve these issues.

Wizz Air’s decision poses serious problems for Modlin Airport as the Hungarian carrier was one of only two airlines that operated there last year. The other one, Ryanair, is taking bookings for flights to and from Modlin starting from September 2.

After being closed for just over six months as it repaired its runway, Modlin reopened on July 3. At present however, no airlines operate there.

Along with Wizz Air, Ryanair is also currently flying from Chopin airport.

COURTESY OF WIZZ AIR

The low-cost airline will continue flying to and from Warsaw Chopin Airport

Chevron has four shale gas concessions in southeastern Poland regarding the granting of extraction licenses, which the group sees as arbitrary, and the role of the National Energy Resources Operator, which according to the draft law would take a stake in all extraction licenses. The group also criticized rules that would limit the time a company has for negotiating an extraction license on a concession where it has found shale gas.

Mr Claussen did not specify which areas of the draft Chevron was concerned with.

Chevron has four concessions in southeastern Poland, although the company has already stopped any explo-

ration work on one of them for now. Another, near the village of ˚uraw∏ów, is facing protests from the local community.

“We are still committed to the work that we are doing in Poland. We still have work to do,” Mr Claussen said.

Over the past two years, three companies – ExxonMobil, Talisman and Marathon – have exited their shale gas investments in Poland. While all three cited disappointing shale gas flows or a change in strategy, there has been wide speculation that uncertainty surrounding government regulations also played a role.

KW, AK

6

BUSINESS

www.wbj.pl

JULY 22 – AUGUST 4, 2013

Defense

Financial sector

PHO plans IPO and develops a new tank

PZU mulls move into banking The region’s biggest insurer may form a partnership with Poland’s largest lender or take over a smaller bank

Polski Holding Obronny already builds the Anders light tank (pictured), but is planning a highly advanced main battle tank as well (HSW) regarding a possible merger, although the talks stalled after HSW presented a long list of demands.

HSW’s requirements include maintaining business independence within the new holding, financial guarantees and receiving a majority stake in one of PHO’s companies which produces armor.

New tank In the meantime, the company announced plans to

produce a new model of main battle tank (MBT), which would be produced in one of PHO’s facilities in Gliwice, in the Silesia voivodship. The facility’s director Andrzej Szortyka promises the vehicle will be “the most modern, and the best MBT in the world.”

The prototype for the planned tank should be ready by 2016, according to PHO. “We’re currently discussing technical aspects

with the holding’s engineers.

I expect that within the next few months all the technical and practical requirements for the project will have been decided upon,” said General Waldemar Skrzypczak, deputy minister of defense.

The tank would be sold to the Polish Army first, but PHO hopes others would be interested as well.

Kamila Wajszczuk, Jacek Ciesnowski

PZU, the region’s biggest insurer, is considering entering the banking sector. According to various media reports it is considering a few different methods for achieving the goal.

One option would be to create a joint venture with Poland’s largest lender PKO BP. The bank plans to sell a 50 percent stake in some of its recently acquired Nordea assets in order to create a bancassurance unit, but for that it will need a partner. PZU is not the only company interested in the venture, daily Dziennik Gazeta Prawna reported, but since both entities are state-controlled, PZU is considered the favorite.

PKO BP’s spokesperson El˝bieta Anders said that the lender will choose the jointventure partner in late Q3 or early Q4 2013. The bank expects the potential investor to pay for the multi-year cooperation up front.

Jacek Ciesnowski

Coal

Miner KW looks for new sales channels, cost cuts Amid slumping sales, the giant coal miner wants to build power plants and restructure Sales are slumping at Kompania W´glowa (KW), the EU’s largest coal mining firm, as energy producers switch from hard coal to cheaper lignite.

The firm is sitting on six million metric tons of unsold hard coal, which it is being forced to export at low prices. KW recorded a loss of some z∏.130 million after the first five months of this year.

One knock-on effect is that the firm is having difficulty paying its suppliers. While the company says most have been understanding, one supplier, Centrala Zaopatrzenia Górnictwa (CZG), has filed a motion with the courts to declare KW bankrupt. The coal giant owes CZG z∏.3 million.

KW’s spokesperson Zbigniew Madej told Dziennik Gazeta Prawna that his company was outraged over the motion. “We cooperate with 9,000 companies,” he said.

“The vast majority of them have shown understanding for

COURTESY OF PGE

Defense industry group Polski Holding Obronny (PHO, previously known as Bumar) plans to list on the Warsaw Stock Exchange within the next three years. The company’s deputy CEO Marcin Idzik made the announcement in an interview with the Polish Press Agency.

The state-owned holding company, which comprises 40 firms in the military sector, hopes to have a net profit in 2013 and wants to increase sales, Mr Idzik said.

“In six years’ time we plan to have z∏.6 billion in profit a year, which would include z∏.1 billion from exports,” Mr Idzik explained, adding that the company wants to focus on airdefense systems and unmanned aerial vehicles, as well as its armored-vehicles program.

PHO is also planning further expansion. According to daily Rzeczpospolita, the holding is in talks with armaments producer Huta Stalowa Wola

COURTESY OF POLSKI HOLDING OBRONNY

The holding is taking steps to become a major arms exporter

Another way PZU could enter the banking sector would be via the acquisition of Bank BG˚, the newspaper reported.

The bank is currently owned by the Netherlands’ Rabobank, which has said it is “considering options” for its Polish unit, but has not officially announced any intention to sell it. Nevertheless, media have named PZU as one of the frontrunners in a potential bidding war for BG˚, alongside ING and BNP Paribas.

Others are pointing out that PZU is already a lender of sorts. Ryszard Trepczyƒski, a member of PZU’s management board, said in an interview with business daily Puls Biznesu that his company finalized some 20 financing deals worth z∏.5.5 billion last year.

Companies that received financing from PZU include such giants as telecom firm Polkomtel and chemicals firm Grupa Azoty. In comparison, PKO BP lent z∏.7.5 billion to corporations in 2012.

“Our target is to have z∏.810 billion of our capital invested in loans and bonds,” said Mr Trepczyƒski.

The expansion of PGE’s Opole plant is expected to help boost Kompania W´glowa’s sales our proposal to postpone payments by 120 days.”

The company is now looking for new ways to offload its coal, and recently signed a letter of intent with Poland’s largest electricity producer PGE to cooperate in a major expansion of the latter firm’s power plant in Opole, in southern Poland. KW also plans to build its own coalbased energy plant in the Silesia voivodship on the site of a former mine.

The expansion of the Opole power plant is due to begin this summer, and when complete will add 1,800 MW

of capacity. The Silesia plant will have a capacity of 1,000 MW and construction should begin in the first quarter of next year. These investments would guarantee KW sales of up to 10.5 million tons of hard coal a year, the company says.

The firm is also planning some restructuring, reducing non-wage costs by 8 percent and cutting employment by some 5,000 workplaces. KW has promised that it is not planning any layoffs, and will simply not replace retiring employees.

Kamila Wajszczuk, Jacek Ciesnowski

BUSINESS

JULY 22 – AUGUST 4, 2013

www.wbj.pl

7

Interview

InPost goes global with package locker service WBJ sits down with Rafa∏ Brzoska, president of Integer Group, owner of InPost, to talk about his company’s plan for global expansion of his package lockers, its long-term strategy, and how it plans to compete with Google and Amazon

Is the battle worth fighting?

The number of letters being sent is shrinking every year.

This sectos is worth z∏.5 billion a year, so it’s definitely worth fighting for. It’s an important segment and it won’t disappear very quickly, especially in Poland where most of the official business has to be done by regular mail. We plan on increasing our share in the sector. There’s a lot more in it than just letters. We are competing with Poczta Polska to get the big, institutional clients. We also want to be present in the segments that we haven’t operated in before or where our presence was barely visible, less than 1 percent of the market. These include money orders and registered mail.

And how are these plans going?

We win every other tender organized by the Agricultural Social Insurance Fund, we also serve many local authorities, like Wroc∏aw or Ruda Âlàska.

We can offer them better prices than Poczta Polska. For comparison, Poczta Polska charges on average z∏.4.50 for a registered letter, we charge z∏.3.30. A money order with

them costs z∏.8, while our price is z∏.6.

Wasn’t it a blessing in disguise that Polish postal law was so strict? Because providing regular postal services used to be so difficult for private postal operators, you had to develop other ideas in order to stay afloat.

Definitely. If we didn’t have such problems competing with Poczta Polska, we would never have thought of our flagship product, lockers for picking up parcels (“paczkomaty”).

When we saw one market shrinking, we had to find another with growth potential.

The Polish parcel market is one of the most competitive in Europe. Most of the global giants are operating here, in addition to Poczta Polska and private operators like us. This has resulted in making prices here the lowest in the EU. Sending a package in Poland costs €2 on average, while the EU average is €4.5.

You’ve recently inquired whether the consumer watchdog (UOKiK) would allow your firm to take over competitors Polska Grupa Pocztowa and Inforsys. Do you have any concrete plans?

So far these are only inquires to see if such an acquisition would be in line with Polish regulations. No agreement has been reached yet. We think that further consolidation of the Polish postal market makes sense and that’s a path we’d like to follow. Polska Grupa Pocztowa is our direct competitor, while Inforsys is a big printing company, which every big postal service operator should have in its portfolio.

Inforsys serves many banks, insurers, telecommunications companies and is a missing link in our chain of services.

We want to offer the whole package to our clients, from processing and producing mail to delivering it.

Is this your plan for the company’s future?

The segment we are focusing on is what I like to call the

Which part of your business – domestic or foreign – brings in more revenue?

The domestic part does, but we expect the trend to reverse next year.

This year, you’re concentrating on the UK. What’s your next target?

The US. It is the biggest ecommerce market in the world and it fits our investment plans perfectly. Amazon is currently testing 150 lockers in the US. Google has recently acquired a Canadian startup specializing in such services for $17 million. We plan on having some 10,000 by the end of 2016 there. I can also say that we should open our first lockers in China this year. We plan to concentrate on Beijing and Shanghai there, which stand for some 40 percent of the Chinese ecommerce market.

COURTESY OF INTEGER GROUP

Jacek Ciesnowski: Has anything changed for your company since January 1, 2013, when the postal law in Poland became more liberal in line with EU regulations?

Rafa∏ Brzoska: No, nothing has changed, because the law has not affected the market at all. The only thing that changed is that we don’t have to add weights to letters any more. Before the new law came into force, private postal operators were only allowed to send letters that weighed more than 50 grams, so in order to circumvent the restriction, metal weights were added to make the letters heavier. State-owned Poczta Polska [Polish Post] still has privileges in a number of services. We think that the new law contravenes EU legislation and we plan to contest it.

traditional market segments we can finance from loans. I’m quite confident when it comes to financing possibilities for our projects.

Rafa∏ Brzoska, president of Integer Group, says the company plans to enter 15 countries this year with its postal services firm InPost “mature” market, as it offers more traditional services. We see the biggest potential there right now. It’s however very likely that we will sell this part of our business in a few years’ time to concentrate on our flagship product – InPost parcel lockers.

How did you come up with the idea for these lockers?

In order to gain a foothold in

the opportunity to pick up parcels on their own. We started with 150 InPost parcel lockers, and by the end of the year we plan on having 1,100 of them in Poland and 4,000 worldwide.

You are present in many different markets, including faraway places like Chile, Australia or Saudi Arabia.

How do you choose the mar-

“Poczta Polska still has privileges in a number of services. We think that the new law contravenes EU legislation and we plan to contest it.” such a competitive market as parcel deliveries, we had to think of an innovative idea that would give us a competitive edge in terms of cost effectiveness, convenience, quality and speed. We realized that the best way to do it would be to offer customers

kets you invest in?

We look for countries that have a big e-commerce market and are developed enough to make use of our products.

Sometimes we find partners interested in a joint venture with us, sometimes we go it on our own.

Right now we’re concentrating our efforts on the British market, which, in terms of e-commerce, is 13 times bigger than the Polish market. We plan on installing 2,000 lockers under our own brand by the end of Q1 2014.

But we’re also currently developing on other markets as well. There are some 15 countries we plan to enter this year. They include the Scandinavian countries, France, Switzerland, Austria, Hungary, Italy and possibly Romania and Bulgaria.

Those ambitious plans don’t come cheap. How can a company that had z∏.50 million in revenue last year afford them?

We estimate that we’ll spend roughly €300 million on installing 14,000-16,000 by 2016. Just this year alone we’ll spend, along with investment fund PineBridge, €108 million on foreign expansion. We received €35 million from private placement in June. We have another potential investor interested in our project. Our expansion in the more

I’m guessing it will cost you more than €100 million ...

We estimate that it will cost us up to €200 million to successfully establish a strong presence in the US and in a few years’ time have 30,000 lockers there.

On the Polish market you’ve thrown down the gauntlet at Poczta Polska. Now you want to challenge such giants like Amazon and Google. Do you think they consider InPost a threat?

No, I think that they will buy us [laughs]. I’m joking of course, but when you look at their acquisition history, they often purchase a company with a firm foothold in the sector, rather than do things from scratch. It’s obviously impossible to predict what will happen in four, five years’ time, but it seems natural that such companies would be interested in acquiring networks similar to the one we plan on having then.

Aren’t you afraid that someone will steal your idea and beat you out to the punch?

I am, that’s why we need to act fast. ●

8

INTERVIEW

www.wbj.pl

JULY 22 – AUGUST 4, 2013

Politics

PO aims to make a fresh start Rafa∏ Grupiƒski, head of the ruling Civic Platform’s (PO) parliamentary caucus sits down with WBJ to talk about the current situation in his party, its waning support, upcoming elections for PO’s leadership and its efforts to regain voters’ trust ences on social issues have come to light. The media, naturally eager to portray the weakness of the governing party, have focused on these issues. Still, if we look at the records of actual parliamentary voting, the fact is that in 98 percent of all cases, the ruling coalition is in agreement, and so is our parliamentary caucus.

Nevertheless, the shift in PO’s general approach on social issues is apparent. Can your party reconcile liberal economic policy with a conservative approach towards social issues?

When dealing with ethical issues we try to avoid battles in parliament whenever possible.

This is the case regarding the in vitro method. We have introduced a special program that will involve refunding the costs of the in vitro procedure for

COURTESY OF CIVIC PLATFORM

Ewa Boniecka: You have always put a lot of effort into ensuring all PO’s various factions work together. Things worked smoothly in the past, but now the factions are so deeply divided that your task seems almost impossible.

When voting on legislation regarding social issues such as in vitro fertilization or civil unions, some strongly conservative PO MPs vote against their own government’s proposals. Why is that?

Rafa∏ Grupiƒski: Within PO, we have always had different attitudes towards certain ethical and social issues. It was always necessary to talk and have discussions to reach a compromise that was acceptable to everyone or at least to the majority of our MPs. But during our second term in power, faced with waning support for our government and for the party, these differ-

Civic Platform parliamentary caucus head Rafa∏ Grupiƒski says he is sure that PM Tusk will be re-elected as party leader some 15,000 childless couples.

This program will be financed from the state budget.

Media patronage

AmCham Independence Day picnic

COURTESY OF AMCHAM

COURTESY OF AMCHAM

On July 6, two days after the United States of America’s official Independence Day (July 4), the American Chamber of Commerce (AmCham) held a picnic at the Polonia Stadium in Warsaw, Poland’s capital, bringing together over 1,000 guests, including prominent businesspeople and politicians.

Stephen Mull, who in 2012 assumed the duties of US ambassador to Poland, was present along with representa- An honor guard presents the colors tives of the Polish government.

Many of the guests arrived with their families, Dabrowski, executive director of AmCham, who enjoyed the various attractions ranging as well as by Joseph Wancer, chairman of from a menu of grilled meat and salads to the AmCham in Poland. performances of soprano Ma∏gorzata “This year we are celebrating the 237th anniverWalewska and harpist Anna Faber. There was sary of the independence of the United States also a special demonstration of American of America, which is an excellent opportunity for the integration of Polish-American business football by the Warsaw Eagles.

The guests were welcomed by Dorota circles,” said Mr Wancer at the event.

“We are happy that along with our American friends we can celebrate an event so important for all of us,” he added. A lottery was held at the event, with the proceeds raised going to charity. The picnic ended with a fireworks show that could be seen all around the city.

AmCham has been present in Poland since 1990, just after communism collapsed and free-market reforms were introduced. The association currently includes 320 companies whose investment volume in Poland has Ambassador Stephen Mull addresses the audience exceeded $20 billion. ●

The strength of the small group of conservative MPs within our large political caucus stems from the fact that our parliamentary majority is razor-thin. So, for instance [former Justice Minister] Jaros∏aw Gowin was exploiting this situation by publicly demonstrating the importance of the conservative faction.

This game ended in his dismissal from his post as minister.

But it is not yet over for Mr Gowin. On the contrary, he is currently running to be leader of PO. Meanwhile, your party has decided to change its system of electing a party head and now all PO members will participate in the vote. Why did you make such a decision?

When we decided to hold a general election for party leader, we heard opinions, both inside and outside the party, that this is some kind of political maneuver. However, in fact it is an excellent example of democracy at work within the party. I think that it is a good example for other political parties in Poland to follow.

When making this decision, we relied on our previous experience of holding a primary election to select PO’s presidential candidate [in 2010]. The spirited contest between [current Foreign Minister] Rados∏aw Sikorski and [current President] Bronis∏aw Komorowski showed that our party is mature in applying democratic rules. It also helped to focus attention on PO as the main political

party, which intended to win the presidential elections.

Meanwhile, our June convention in Silesia approved the changes in the party’s internal voting system. A new leader will be elected in August and Jaros∏aw Gowin is already running his election campaign. He represents a visible, but small,

Good Changes will not negatively affect the way our parliamentary caucus works nor lead to our party losing MPs. Dissatisfied Varsovians are in the midst of organizing a recall vote to oust Warsaw Mayor Hanna GronkiewiczWaltz, who is also deputy

“The strength of the small group of conservative MPs within our large political caucus stems from the fact that our parliamentary majority is razor-thin.” group of conservatives within the party. I do not expect him to win a significant number of votes in these elections. Donald Tusk will emerge the winner.

Still, the convention didn’t bring an end to the turmoil inside your party. Mr Gowin has just established a parliamentary group called Good Changes, gathering conservatives from PO and also some members of your junior coalition partner, PSL, among them former Deputy PM Waldemar Pawlak. Could that harm PO? Jaros∏aw Gowin informed me in advance that he would be establishing such a group and I told him that I would not oppose his move.

Some politicians are speculating that Mr Gowin aims to leave Civic Platform, but I am not convinced of that. Nevertheless, in my opinion the establishment of his group for

leader of your party. What are your thoughts on the matter?

This is an important test for PO, certainly from the point of view of the party’s image, because Warsaw is the capital of Poland. My intuition tells me that the election might actually help Varsovians to see everything that has been achieved in the last seven years [with Ms GronkiewiczWaltz as mayor] in a positive light.

When we look at Ms Gronkiewicz-Waltz’s program and her plans for Warsaw, we clearly see that 90 percent of her plans for our capital’s development have been either completed or are being implemented. This demonstrates how much a successful politician can achieve despite numerous difficulties. I am convinced that Varsovians will look objectively at the whole picture regarding the changes and developments in Warsaw

INTERVIEW

JULY 22 – AUGUST 4, 2013

COURTESY OF CIVIC PLATFORM

“It is our government’s achievement that Poland managed to avoid sharing the plight of other European countries in the recent financial and economic crisis.”

during her time as the capital’s mayor.

PO presents itself as a moderate party, but it seems that lately you have been having problems striking a balance.

Some say you are shifting to the right, others that you are swerving to the left and thus losing your center-right identity. What is your response to these criticisms?

The identity of PO as a moderate center-right party is well established. However, striking a political balance in such a party, which combines modernization with traditional values, is a sensitive task, especially in Poland where tendencies towards conservatism prevail.

In the 2005 elections, the majority of Poles gave their votes to parties on the right.

Poles are open to changes in certain aspects, but their views are conservative in others, especially when it comes to family-related matters. So a party like ours, which enjoys the support of a wide range of Poles, from liberal to conservative groups, cannot dismiss or ignore these tendencies. We have to look for a compromise.

There is a feeling that PO is preoccupied with itself and that the government is not dealing with economic problems, such as low GDP projections, high unemployment and a high budget deficit, properly. Do you think the weak economy is the main reason for PO’s waning support?

It is our government’s achievement that Poland managed to avoid sharing the plight of other European countries in the recent financial and economic crisis. We have maintained economic growth throughout the crisis.

All EU members are now

struggling with high unemployment and slow recovery.

However, economic data for Poland are showing positive trends. Unemployment is dropping – it is now at 13 percent. We have also been observing signs of an economic rebound in the past two months, and we hope that this trend will continue.

The influx of funds from the European Union, which we secured for Poland within the 2014-2020 EU budget framework, will give an additional boost to the economy.

It is clear to all of us that the economy is key to improving PO’s and the government’s popularity. We are taking various steps to boost our economic performance in all areas: industry, investment and innovation. It is a continuous process.

We have already submitted a bill to parliament on facilitating administrative processes for entrepreneurs, changes in construction laws and changes in public procurement laws.

This bill will boost investment in infrastructure. All those changes have been designed to improve the functioning of the state and limit bureaucratic procedures.

However, I must add that making our society optimistic again is a vital element for improving the economic situation. Poles should believe that we can help the economy get back on track.

We have new challenges and problems ahead of us, but we can overcome them by maintaining a positive outlook and by avoiding conflicts. The way our party communicates with society should be improved. Changes will help to rebuild trust in PO and in the government.

Are you in favor of Prime Minister Tusk’s proposal that

political parties no longer receive state subsidies? Do you think this legislative proposal will be approved despite the fact that your coalition partner, the Polish Peoples’ Party, opposes it?

This proposal has been on our agenda ever since our party was established and now we are returning to the idea. In the past we didn’t take money from the state budget, but in order to remain competitive with political parties that are supported with public money we decided to accept the subsidies. The key is to maintain full transparency in managing party funds, be it from the budget or from any other source.

But there’s been some controversy over the way PO used these funds, spending it on items like suits for the prime minister, wine and cigars.

Isn’t the recent proposal simply a way of trying to play down these reports?

Well, opposition Law and Justice spent z∏.1 million on private security for its leader [Jaroslaw Kaczyƒski]. But nowadays every excuse is a good one if it leads to attacking PO. What should PO do to recover from its slump in support?

Our recovery depends on a full mobilization in the nearest months and on our ability to make a fresh start and implement our objectives throughout the rest of the parliamentary term. It is very important that we can present voters a comprehensive action plan for the next two years. I believe that our eclectic and open party has the will and the energy to convince Poles of our ability and determination to lead the country and assure its development. ●

www.wbj.pl

9

FINANCE & ECONOMICS

JULY 22 – AUGUST 4, 2013

Production

Industrial output beats expectations Could it be a signal that Poland’s economy is on the road to recovery?

Poland’s industrial production grew by 3.0 percent year-onyear and 2.8 percent monthon-month in June, statistics office GUS said. The figure was higher than expected.

Analysts surveyed by the Polish Press Agency had expected the growth to be 1 percent both in annual and in monthly terms.

Seasonally adjusted, industrial output increased by 4.5 percent y/y and by 3.1 percent m/m, GUS also said. Output in the construction sector fell by 18.3 percent y/y and grew by

Industry ups and downs Poland’s industrial production growth rate (%), June 2011-June 2013 10 8 6 4 2 0 -2 -4 -6 -8 -10 -12

Source: Central Statistical Office

19.1 percent m/m.

“Improvement in output versus May was up to a certain extent due to a waning negative effect of working days, which lowered May’s reading,” BZ WBK economists wrote in an e-mailed comment.

According to them, the scale of the rebound, however, suggests “some recovery of activity in Polish industry, which was actually heralded by improving business cycle indicators in recent months.”

Construction output was also better than expected, the economists wrote, “but one should remember that it was supported by the effect of a strongly declining statistical base – after June 2012 preparations for the Euro 2012 soccer championship ended and the construction market collapsed.”

Kamila Wajszczuk

Inflation

Poland’s CPI inflation rate drops to lowest point in two decades

Poland’s consumer price index (CPI) inflation rate fell to just 0.2 percent year-on-year in June, the lowest level since statisticians began measuring Poland’s post-communist economy in the early 1990s. Compared to May, the consumer price index was unchanged. In May, the annual inflation figure was 0.5 percent.

The June figure was lower than expected. Economists surveyed by the Polish Press Agency had forecast June inflation at 0.3 percent y/y and at 0.0 percent m/m.

Food prices dropped by 0.2 percent m/m and rose by 0.8 percent y/y. Clothing and footwear prices dropped by 0.8

percent and by 4.7 percent y/y.

“Record low inflation is not ... good news for Poland’s finance minister (as it lowers nominal value of tax base), but it is positive for [the] real growth rate of household income and thus for consumption demand prospects,” Nordea Markets economists wrote in a comment.

They added that CPI inflation

should begin rising gradually starting from July.

The economists also wrote that they see the inflation figure as neutral for the Monetary Policy Council. “We think that Polish rate-setters have already taken into account the bottom of inflation in June in its recent decisions.”

KW

Slippery slope Poland’s CPI inflation rate, June 2011-June 2013 5 4 3 2 1 0 Jul 1 Au . ’11 g.

Se ’11 p.

Oc ’11 t.

No ’11 v De . ’11 c.

Jan ’11 .

Feb ’12 .

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Jan ’12 .

Feb ’13 .

Ma ’13 r.

Ap ’13 r.

Ma ’13 y Jun ’13 . ’1 3

Prices in Poland are remaining more or less stable – but don’t count on any more interest rate cuts

Jun . ’1

www.wbj.pl

Jun .

Jul ’11 Au . ’11 g.

Se ’11 p.

Oc ’11 t.

No ’11 v De . ’11 c.

Jan ’11 .

Feb ’12 .

Ma ’12 r.

Ap ’12 r.

Ma ’12 y Jun ’12 .

Jul ’12 Au . ’12 g.

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Ma ’13 y Jun ’13 . ’1 3

10

Source: Central Statistical Office

Wages rise faster than expected The average gross monthly salary in Poland grew by 1.4 percent year-on-year and by 2.9 percent month-on-month and amounted to z∏.3,808.63 in June, statistics office GUS said. The figures were higher than expected. Economists surveyed by the Polish Press Agency expected June wages to grow by 2.1 percent y/y and 3.4 percent m/m.

In an e-mailed comment, BZ WBK economists said that

while wage growth has slowed (wages grew 2.3 percent y/y in May), this was probably due to a temporary effect. “In H1 as a whole the average wage growth amounted to ca. 2 percent y/y. We think that wages may accelerate somewhat in H2,” they wrote.

GUS also said that 5.49 million people were employed in Polish enterprises in June, which means that employment fell by 0.8 percent y/y and grew

by 0.2 percent m/m. Analysts expected it to decline by 0.9 percent y/y and remain unchanged in monthly terms.

“This was already [the] second month in a row of rising employment,” BZ WBK economists wrote. “We find this a positive sign though it is too early to say for sure whether this was due to higher seasonal activity or some broader revival,” they added.

KW

OPINION & ANALYSIS

JULY 22 – AUGUST 4, 2013

www.wbj.pl

11

Europe’s zombie banks Daniel Gros

W

hat is wrong with Europe’s banks? The short answer is that the sector is too large, has too little capital, and contains too many players that lack a viable longterm business model. It is the combination of the last two factors – an overabundance of banks with no sustainable way to turn a profit – that constitutes the most serious and most difficult problem.

The banking sector’s size is a cause for concern because, with total liabilities amounting to more than 250 percent of the euro zone’s GDP, any major problem could over-burden public budgets. In short, the banking sector in Europe might be too big to be saved.

Cure for undercapitalization Undercapitalization can be cured by an infusion of new equity. But the larger the banking sector, the more difficult this might become. More importantly, it makes no sense to put new capital into banks that cannot return profits for the foreseeable future.

The difficulties in southern Europe are well known, but they differ fundamentally from country to country. In Spain, banks have historically issued 30-year mortgages whose interest rates are indexed to interbank rates such as Euribor, with a small spread (often less than 100 basis points) fixed for the lifetime of the mortgage.

This was a profitable model when

SHUTTERSTOCK

“The banking sector in Europe might be too big to be saved”

Spanish banks were able to refinance themselves at a spread much lower than 100 basis points. Today, however, Spanish banks – especially those most heavily engaged in domestic mortgage lending – must pay a much higher spread over interbank rates to secure new funding. Many local Spanish banks can thus stay afloat only because they refinance a large share of their mortgage book via the European Central Bank. But reliance on cheap central bank (re)financing does not represent a viable business model.

In Italy, the difficulties arise from banks’ continued lending to domestic companies, especially small and medium-sized enterprises (SMEs), while GDP has stagnated. Even before the euro zone crisis erupted in 2010, the productivity of capital investment in Italy was close to zero.

The onset of the current recession in Europe has exposed this low productivity, with the failure of many SMEs leading to large losses for the banks, whose funding costs, meanwhile, have increased. It is thus difficult to see how Italian banks can return to profitability (and how the country can resume economic growth) unless the allocation of capital is changed radically.

Problems up north There are problems north of the Alps as well. In Germany, banks earn close to nothing on the hundreds of billions of euros of excess liquidity that they have deposited at the ECB. But their funding costs are not zero. German banks might be able to issue securities at very low rates, but these rates are still higher than what they earn on their ECB deposits. Moreover, they

must maintain an extensive – and thus expensive – domestic retail network to collect the savings deposits from which they are not profiting.

Of course, some banks will always do better than others, just as some will suffer more than others from negative trends. It is thus essential to analyze the situation of each bank separately. But it is clear that in an environment of slow growth, low interest rates, and high risk premia, many banks must struggle to survive.

Recapitalize and restructure Unfortunately, the problem cannot be left to the markets. A bank without a viable business model does not shrink gradually and then disappear.

Its share price might decline toward zero, but its retail customers will be blissfully unaware of its difficulties.

Other creditors, too, will continue to

provide financing, because they expect that the (national) authorities will intervene – either by providing emergency funding or by arranging a merger with another institution – before the bank fails. Recent official tough talk in the European Union about “bailing in” bank creditors has not impressed markets much, not least because the new rules on potentially imposing losses on creditors are supposed to enter into force only in 2018.

Starting next year, when it takes over authority for bank supervision, the ECB will review the quality of banks’ assets. But it will be unable to review the longer-term viability of banks’ business models. Current owners will resist to the end any dilution of their control; and no national authority is likely to admit that their national “champions” lack a plausible path to financial viability.

Keeping a weak banking system afloat has high economic costs.

Banks with too little capital, or those without a viable business model, tend to continue lending to their existing customers, even if these loans are doubtful, and to restrict lending to new companies or projects. This misallocation of capital hampers any recovery and dims longer-term growth prospects.

What should be done is clear enough: recapitalize much of the sector and restructure those parts without a viable business model. But this is unlikely to happen any time soon. Unfortunately, until it does, Europe is unlikely to recover fully from its current slump.

Daniel Gros is director of the Center for European Policy Studies.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

Letter to the editor

Chopin Airport security contractor’s failure leads to inefficiency, missed flights Dear Sir, When I read the opinion piece about Warsaw Chopin Airport

by Lars Christensen (“The economics of airport security – the case of Poland” in WBJ vol. 19, no. 22, June 10-16, 2013), I thought of the oftrepeated bar line: “I’ll have whatever he’s drinking.” Mr Christensen referred to the security staff there as “polite” as well as “friendly, well-

dressed and efficient.” Well, three out of four ain’t bad. If Mr Christensen had been at Chopin Airport on June 14, he would have seen that spotting security staff would have been like winning the lottery.

Intending to fly to Boston via London Heathrow, I joined the queue for check-in at 9:15 am, 20 minutes before it was due to open. At 10:05 am I joined the queue for

security control, one hour and 25 minutes before the gate was due to close. The line of passengers shuffled forward far too slowly and, as we checked our watches, the tension rose. People started to push in to get to the security lines quicker.

The terminal had at least eight security lines but, when I got a view, it looked as if there was only one member of air-

port staff directing people and only two security lines open.

Then, too late, another officer arrived at 11:15 am, and two more lines were opened.

I eventually got through “security” at 12:20, and ran desperately to passport control and my gate. Unfortunately my flight had taken off without me. When I consulted my airline I was told they had no flights the next day – I

would therefore miss my appointments in the US. This is a direct result of the way the security contractor did its job. Naturally, the airport and the contractor want the job done as cheaply as possible. It is cheaper to provide seven staff than, say, 26.

However, those savings are outweighed by the costs incurred: the cafes and shops were empty, people miss

flights and make claims against the airport.

Are the airport and the security firm saying: it is “the law of the jungle” at the airport? That it is every man for himself? If they cannot manage large numbers of people, if normal procedures can be disregarded, then passengers must be ready to behave like mad dogs to get through security.

Frazer Speirs

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COVER STORY

www.wbj.pl

JULY 22 – AUGUST 4, 2013

Brendan Melck

Economic migration

Anti-immigration sentiment is gaining steam in the UK – what does it mean for Poles who have moved there in search of work?

It has been roughly 10 years since the UK opened its labor market to Poles upon their country’s accession to the EU. But economic stagnation, the future opening of the labor market to more recent EU entrants, and growing political pressure on the government from anti-immigration and anti-EU factions are putting pressure on Polish migrant workers.

Focus on immigration The largest proportion of emigrants from Poland in recent years – around one third between 2004-2010, according to Poland’s statistics office GUS – have moved to the United Kingdom. But in the years prior to the 2009 recession in the UK, although there were occasional manifestations of anti-immigrant feeling

against the new entrants from the east (the majority of whom were Poles), there was no substantial organized front.

The situation has now changed, however, with a gradual increase in anti-immigration and anti-EU sentiment brought about by the recession in the UK in 2009. It has picked up steam since the Conservative-Liberal Democrat government came into power in 2010, giving these sentiments greater political weight.

The UK has not returned to recession since 2009, although growth has been minimal, and this has created favorable con-

immigrants – gained an estimated 26 percent of the vote in local elections, putting more pressure on Prime Minister David Cameron to offer voters an in-out referendum on the UK’s EU membership before the next general election, due in 2015 at the latest. Mr Cameron, whose party contains a substantial group of euroskeptics, has already promised such a referendum if the Conservatives win that election, and has stated that the referendum would be based on renegotiated terms of the UK’s membership of the union.

The main opposition to the

“Due to increased competition, some Poles could lose their jobs, with Romanians and Bulgarians filling these positions.” ditions for the anti-immigration and anti-EU lobby. In May 2013, the United Kingdom Independence Party (UKIP) – which intends to take the UK out of the EU and place strong limitations on immigration and access to the labor market for

Conservative-Liberal Democrat coalition government, the Labour Party, also appears to be destined to back a referendum, despite having been the party that so enthusiastically backed the opening of the UK’s labor market to new EU

SHUTTERSTOCK

Neither here nor there

Poles are less welcome in Britain than they once were member state immigrants in 2004. The party’s leader, Ed Milliband, recently stated that his predecessors, under the premiership of Tony Blair, had made a mistake by opening up the UK’s labor market to the new member states in 2004.

A UKIP victory in the 2015 election is extremely unlikely, but the party’s increasing presence and recent surge in popularity is having an important influence on the agenda of British politics, both with regards to immigration and to EU membership. At the same time,

while a British exit from the EU is also unlikely, it remains a possibility in the context of the promised referendum. And the prospective renegotiation of the terms of Britain’s EU membership may also have some important implications for Polish immigrants, both present and future.

Potential scenarios Maciej Duszczyk of the Institute for Social Policy at the University of Warsaw presented several possible scenarios which would have varying

impacts on EU immigrants to the UK. “If the UK exits from the EU in a political sense, but remains part of the European Economic Area, like Norway or Iceland, then as far as I can see, nothing changes for the immigrants, because free movement of labor is part of that system,” he told WBJ. “The UK could also withdraw completely, from the EU and the EEA, and there is also the possibility that it could stay in the EU, but could renegotiate free movement of labor,

COVER STORY

While the potential consequences of a British exit from the EU or a change in its terms of membership are a matter of speculation for now, there is no escaping the reality of the change in the public debate about immigration in the UK in recent months.

UKIP’s success in local elections and the popularity of its leader, Nigel Farage, have sent a signal to the political elites in Britain that they need

power – there would be criteria based on the level of integration into British life, the contribution to the economy, and cultural integration.

He also explained the crux of his opposition to the opendoor policy of immigration from Central and Eastern European countries: “You’ve got native British people working on building sites, tradesmen like electricians, plasterers, people working in the catering industry, and people working in the care industry, who’ve got their wages being driven down because people will come in and work for a cheaper rate,” he said.

“Now these people are often self-employed, especially in the building industry, and they’ve been told ‘you can take a cut in pay, or we’ll just give the work to a Lithuanian or a Pole who’ll work for 2030 percent less than you’re getting.’ So they have a

“Migration is a very welcome mechanism to show that the burdens of economic hardship are shared across our countries.” cilor in Lincolnshire rhetorically asked a Polish woman on Facebook what she would do when his party gains power and pulls Britain out of the EU, and repatriates Poles and other migrant workers.

Gerard Batten, the UKIP spokesperson on immigration, told WBJ that the party’s immigration policy was under review, but emphasized that he was not in favor of simply throwing Poles and other EU immigrants out of the country should the UKIP come to

choice: accept a reduced living standard or be out of work. The employers, all they want is cheap labor – they’re not interested in whether someone can pay their bills or not, or pay their mortgage.”

Mr Batten also spoke of mass immigration “creating an unstoppable rise in population,” positing a future in which “the population spirals out of control, and we all live with a very reduced quality of life.”

However, Christian Dust-

Well-educated immigrants Christian Dustmann, the director of the Centre of Research and Analysis of Migration (CReAM) at University College London, emphasized how highly educated Britain’s immigrants were, and said Polish migrants were a prime example. Anecdotes abound in the UK of, for example, law graduates serving coffee in Starbucks.

This begs the question of what will happen over the longer term with these young people who were educated in Poland and are now contributing instead to the economic wellbeing of the UK – a reference to the fact that according to the UK’s National Institute for Economic and Social Research, new EU migrants increased the UK’s GDP by 0.38 percent in the years up to 2009.

Recent figures published by Poland’s statistics office showed that of the approximately 2 million Poles in other countries, some 1.4 million of these are 39 years old or younger.

Many of them are the highly educated people Mr Dustmann mentioned.

Since the most recent wave of emigration from Poland began in 2004, economists have warned of the shortfall in creativity and innovation that will be felt in Poland as a result of the large numbers of young people who have left.

And they likely won’t be coming back anytime soon. Tadeusz Stenzel, the vice chairman

of the Federation of Poles in Great Britain, predicts that most Poles who have come to Britain since 2004 will stay a fairly long time.

“I think around 70 percent are going to settle here for a longer duration than five years,” he told WBJ. “They may have a feeling that it’s a temporary phase, and many think they’ll be here only a short time, but I believe they’re here mostly for a fairly long stint. In fact, some of them have already been here for around 10 years – and I expect it to follow the pattern of Pakistani and Indian migration, with people returning to their country of origin after they’ve had children, and they are ready to retire.”

Mr Stenzel added that the proximity of Poland to the UK made the situation somewhat different for Polish migrants, and brought many of them to lead what he described as a “dual existence.” This tends to involve hard work and earning money in the UK, and holidays and spending money in Poland. For many of the children of this wave of migrants, however, Britain is now home, and it is debatable whether they will want to return.

“Some argue that when the skilled and clever people leave a country that it has a negative impact on the country – but they will come back as soon as the economic situation improves,” said Mr Dustmann.●

13

Driver of growth

In 2011, Poles in various countries sent some z∏.17 billion back home Remittances from Poles working abroad have helped maintain Poland’s unbroken record of economic growth. According to a report by

mann of CReAM painted a different picture: “The migrant population in the UK is not overwhelmingly large – it’s around 10 to 11 percent of the population, which is far smaller than in many European countries,” he said.

“The immigrant population is concentrated in London, which is also not unusual. You can see this in large cities across Europe where there are similar and higher concentrations of immigrants living in large cities – not to mention in North America,” Mr Dustmann added.

Certainly, the perception

the Adam Smith Center, a Warsaw-based think tank, in 2011 financial transfers worth z∏.17 billion were remitted by Poles outside of the country. That accounts for an estimated 1.42 percentage points of the 4.5 percent GDP growth in that year. The figure was considerably lower than the amount estimated to have been sent home at the peak of the wave of immigration in 2007: some z∏.25.5 billion, or 2.5 percentage points of the 6.7 percent GDP growth in that year. Since money-transfer statistics are tricky, it is widely assumed that the actual figure was even somewhat higher.

The Adam Smith Center points out that with the advent of the economic crisis, the decline in transfers back to Poland fell less drastically than foreign direct investment, and in 2010, the amount of money sent back by emigrants was considerably higher than the total FDI pumped into the country: z∏.18.1 billion in remittances, as compared with z∏.10.2 billion in FDI. ●

of immigration and immigrants as a “problem” is subject to individual interpretation. When Poland joined the EU in 2004 and the UK opened its labor market, the UK had an economy which was in a strong cycle of growth, and there was a need for particular skills.

“There was a huge demand for labor, skilled in various occupations. It was impossible to find skilled plumbers or skilled builders in London and many other larger cities,” explained Mr Dustmann. “I think that for many reasons this was very

important because there was simply no skilled labor for many professions available in the UK, so business and industry put very high demands, very strong demands on the government to allow for free movement of labor.”

“Migration is a very welcome mechanism to show that the burdens of economic hardship are shared across our countries,” he added, concluding, “It is surely better that someone in rural Poland who cannot find a job has the possibility to find a job in the UK.” ●

Media patronage

Bastille Day Ball On July 14, the French Chamber of Industry and Commerce in Poland (CCIFP) held an event commemorating the French national holiday, Bastille Day, at Endorfina restaurant on ul. Foksal in Warsaw’s city center.

More than 1,200 guests attended the event, among them customers and partners of CCIFP, as well as representatives of Polish political parties, the European Union diplomatic corps, the Polish media, and the general public.

All in attendance had the opportunity to celebrate the national holiday marking the anniversary of the French Revolution as though they were on the Seine river in Paris. Attendees had the opportunity

COURTESY OF CCIFP

Worsening atmosphere

to show the public that they are serious about dealing with this perceived problem.

Christian Dustmann, the director of the Centre of Research and Analysis of Migration (CReAM) at University College London, told WBJ that this outpouring of anti-immigrant sentiment was nothing unusual given the circumstances.

“You always have migration becoming an issue in times of economic difficulty; this is not in any way special.

We have growth at close to zero (in the UK), real wages are declining and people feel economic pressure. There is always a tendency to look for someone responsible, and migrants very often fill the gap.”

UKIP leader Nigel Farage frequently laments the “excess levels” of immigration which have been permitted in the country. And recently, a newly-elected UKIP coun-

www.wbj.pl

SHUTTERSTOCK

although I do not believe that either of these would happen,” he said.

Mr Duszczyk also highlighted the opening of the labor market to Romanians and Bulgarians from the beginning of 2014. MigrationWatch UK, a think tank which is critical of the high levels of immigration to the country in recent years, has estimated that around 50,000 citizens of these two countries could arrive in the UK each year, starting frpm 2014, although the size of this estimate has been disputed.

“If Romanians come over to the UK, they’ll be seeking similar types of work – in supermarkets, driving buses and so on, and since there aren’t masses of vacancies, because Poles have taken a lot of the jobs, Romanians or Bulgarians may compete with Poles,” Mr Duszczyk predicted.

“And because they don’t have any great experience of work in the UK, they could agree to work for the lowest wages, with the potential result being that due to increased competition, some Poles could lose their jobs, with Romanians and Bulgarians filling these positions – that’s a possible situation.”

COURTESY OF CCIFP

JULY 22 – AUGUST 4, 2013

to watch a French national military parade and fireworks live on a screen placed in the restaurant’s garden area.

Each year the ball brings together Varsovians and supporters of French culture in an evening of traditional games and attractions.

Guests could play a game of Boules, an outdoor sport popular primarily in southern France, dance to Francophone and international tunes, take part in a lottery organized by various Polish and French companies or try a wide array of wines and international cuisine. ●

14

INTERNATIONAL

www.wbj.pl

JULY 22 – AUGUST 4, 2013

Interview

Nigeria looks to transform private sector Remi Adekoya: How would you describe Polish-Nigerian relations today both on a government-to-government level and from a people-to-people perspective?

Samuel Jimba: When it comes to diplomatic ties, our relations with Poland have always been very smooth. We have never had any problems with the Polish government in our over 50 years of formal diplomatic relations. However, when it comes to the peopleto-people ties you asked about, we can certainly do more. We can’t blame this on Poles or Nigerians, though, but on history.

We were colonized by the British and so it is quite natural that Nigerians are very familiar with British and in general Anglo-Saxon culture.

This gives the Brits and Americans a considerable advantage when it comes to entering our market, dealing with our institutions and with our citizens.

Also, British people, or Western European people in general, tend to know more about Nigeria than, say, Poles or other Central Europeans do. However, I know that the Nigerians who do come here are very impressed with the sophistication of the Polish people, their high-level of education and adherence to excellence. Poles do not compromise on quality and that is why I think Polish firms could replace some of the other foreign firms currently doing good business in our country.

What are some of the areas in which you see potential for cooperation between the two countries?

Energy would be the obvious one, also construction, but also trade in various commercial goods. I also think Polish interest in Nigerian agriculture would be welcomed.

Is the Nigerian government ready to sell land to foreigners?

As you know, Prime Minister Donald Tusk visited Nigeria in April and I have to say that the visit was a master stroke on his part. He is a very impressive

man and I can tell you that our President Goodluck Jonathan was very impressed with him. I think that visit helped to open a lot of doors when it comes to Polish-Nigerian cooperation.

Having said that, we are driving this new commercial process through the private sector and not through the government. We are more interested in private-sector participation, so what we want is a situation whereby if there is a farmer that wants to go to Nigeria to set up any type of farm, he can feel free to do so after establishing contacts with the private entrepreneurs he will deal with in Nigeria.

Government-to-government cooperation and government involvement in the private sector are usually not that effective. We in Nigeria want to transform our private sector and reduce government involvement in our economy. Up till now, we have been too reliant on our public sector and the public sector is usually inefficient. So now it is the private sector we will focus on. Thus, there will be no issue of a government changing and then the new authorities introducing new policies. That only breeds uncertainty and investors don’t like uncertainty.

There is a role for the government here, though. The state can offer a Polish investor a five-year, tax-free period for investment. There is also a law in Nigeria which states that if you invest a particular amount of money and employ a particular number of people, you are allowed to recover 100 percent of the costs you incurred to start the project before you start paying tax.

Poland has expressed interest in importing biomass from Nigeria. Indeed, some businesses are already doing so, but not on a large or regular scale. What are the obstacles today to doing that kind of business?

The simple fact of the matter is there are certain standards demanded here in Europe, certain technologies that are lacking in Nigeria. It’s not just

COURTESY OF THE EMBASSY OF NIGERIA IN POLAND

WBJ sits down with Samuel Jimba, Nigeria’s ambassador to Poland, to discuss the potential for commercial ties between both countries, barriers to bilateral trade and the outcome of Prime Minister Donald Tusk’s April visit to the booming African nation

Ambassador Samuel Jimba of Nigeria says that his country’s president, Goodluck Jonathan, was impressed with Polish Prime Minister Donald Tusk during his visit to Abuja in April about collecting potential biomass products from a village, which is where you usually find, for example, palm kernel shells, and putting them in a container to ship to Europe.

There is a process you have to follow and I think that’s what is

and logistically. By this I mean ensuring that physically we have enough courts to deal with all the cases that may be brought forward. Logistically, we are trying to make the courts more efficient and ensure judges earn enough

“We want to transform our private sector and reduce government involvement in our economy.” hindering that business. We need to be able to improve our processing in Nigeria and also to package the products better.

Nigeria’s economy is currently growing at 6-7 percent, levels unseen in Europe today. But I know there are two factors potential European and Polish investors worry about when considering Nigeria as a possible investment destination: security and the rule of law. What efforts are being made to improve the situation on those fronts?

The rule of law is the essence of the transformation from a public-sector dominated economy to a private-sector dominated economy. We are strengthening our court systems both infrastructure-wise

money so they cannot be tempted by say, corrupt businessmen.

You can open a company in Nigeria online, submit all your papers online and the system informs you when your application will be addressed.

Admittedly, it still takes some time, sometimes up to four or five weeks before your application is approved, but you don’t have to deal with individuals. You deal with this institution. It sometimes takes that long for the application to go through because we try to do thorough background checks on applicants to avoid situations where miscreants and those with fraudulent intentions can set up companies.

There is no country in the world without at least some

people who will go out of their way to do wrong. It depends on who you are dealing with. If you deal with the right institutions you won’t have any problems. But sometimes people come to Nigeria and they want to cut corners and do things fast. In the process they fall into the hands of people who want to dupe them, simply put.

And so I believe that institutionally, our country is improving. Regarding security, yes, there are Islamist terrorists still operating in Nigeria but today we live in a world where international terrorism is a real threat almost everywhere. There are cities in the world where every five minutes a person is killed and people still invest in those places and make profits.

Yes, there are terrorists who are trying to destabilize the Nigerian economy and threaten people with death or kidnapping. But right now, as I am speaking to you, there is an ongoing extensive military operation in the areas where these terrorists have their bases and we will root them out. Our president was hesitant to use such significant military force because there will always be collateral damage during such operations.

Recently, he even offered these terrorists amnesty if they

cease their violent activities but they refused. They have rejected the olive branch he offered and so will now face the full wrath of our military and security forces.

It seems illogical that products such as fruit, which are abundant in Nigeria, are not exported to countries like Poland. What is the barrier there?

Again, there is a problem of our exporters meeting certain standards. But there is also a more practical problem. We have a lot of big, juicy fruit, but many of them would not last the long trip to Europe. That is an issue too.

I would also like to take this opportunity to inform any potential businessmen interested in Nigeria that we here at the embassy are at his or her disposal.

We are able to advise any businessman who is thinking of going to Nigeria. For free of course. We can get them in touch directly with established businesses in Nigeria. The Polish-Nigerian relationship is no longer a question of government. We don’t want our government doing business. We want our private sector to do business. Let businessmen do their business and let’s forget about the government. ●

The Polish retail market gained 74,500 sqm in Q2 2013, with another 730,000 sqm in the pipeline 16

Robin Szustkowski, co-owner of Radius Projekt, talks about residential market trends and his company’s strategy

17

LOKALE IMMOBILIA

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

Residential

Goodman European Logistics Fund (GELF) has raised €550 million of new equity, completing an equityraising process which received total demand in excess of €900 million.

The majority of the equity was raised via a rights issue to existing investors. To facilitate the excess demand, Goodman Group will sell part of its holding in GELF, which will result in Goodman Group holding an investment of approximately 20 percent in the fund upon completion of the transaction. ●

In this issue Vistula bank revamp . . . . . . . . .15 Złota 44 sale . . . . . . . . . . . . . . . .15 Retail market . . . . . . . . . . . . . . .16 Upper Silesia . . . . . . . . . . . . . . . .16 Radius Projekt interview . . . . .17

The development will create a huge new residential and commercial area on the eastern bank of the Vistula Mennica Polska SKA, subsidiary of the Polish Mint, has announced a plan to build a mixed-use project on a 27.6hectare plot on the site of a former car factory on the Vistula River in the northern part of Warsaw.

The scheme, called Dolina Wis∏y (Vistula Valley) was designed by the JEMS Architekci architectural studio. It will offer over 166,000 sqm of residential area, over 127,100 sqm of office and hospitality space and almost 70,500 sqm of GLA in retail facilities.

Mennica Polska revealed that the cost of the entire project, which it hopes to complete within the next nine to 12 years, is estimated at between

z∏.1.5 and z∏.2 billion.

The residential portion of the investment will comprise low-rise multifamily buildings with an average unit size of 4050 sqm. The apartments will be priced between z∏.5,000 and z∏.6,000 per sqm.

The project will also deliver class-A office buildings, ranging from five to seven storeys, retail facilities, bike routes and green squares. The investor says that the development will be energy efficient and environmentally friendly. There is also a plan to build a private marina and a kayak rental center within the scheme.

The development will be located near the Trasa Toruƒska expressway, part of the national S8 expressway.

The city is also planning to build a bridge, called Most Krasiƒskiego, which will connect the city’s ˚oliborz district on the western bank of the Vistula River with ul.

Jagielloƒska on the eastern bank. The new bridge will be

The new estate will deliver 166,000 sqm of residential space and nearly 200,000 sqm of commercial space and from the development easier.

Mennica Polska SKA has submitted the blueprints for the new estate to Warsaw City

located between Warsaw’s two northern bridges, the Gdaƒski bridge and the Grota-Roweckiego bridge, and should make traveling to

Hall. The city project was approved since it is in line with the revitalization plan for the capital’s river banks.

Karolina Kowalska

Residential

Orco hires prestige consultant for Z∏ota 44 The developer will relaunch the sales of apartments in its Z∏ota 44 residential tower this fall Orco Property Group has decided to relaunch sales of apartments in its Z∏ota 44 investment in downtown Warsaw this fall, after suspending it for a year due to unfavorable market conditions. The skyscraper, which was designed by the renowned Polish-American architect Daniel Libeskind, comprises 266 upscale apartments with an average area of 150 sqm each.

The company has hired an outside consultant to help in the commercialization of the property, bringing on Roger Black, a well-known British

specialist in the premium-class residences.

Mr Black, who has marketed many upscale apartment buildings in some of the most illustrious locations in the world, wants to make Z∏ota 44 one of the most prestigious addresses in Warsaw.

For starters, he has said that the highrise will have a doorman to help residents open lobby doors and carry luggage; he will even hold an umbrella over them while escorting them to their car on a rainy day. Such luxuries are rare in the Polish residential market.

Mr Black believes that Poles expect the same quality of service that can be found in Manhattan or Saint-Germain, Paris. “Polish people are cosmopolitan people, they are

educated and travel around the world and then take all that wealth and education back with them to Warsaw,” said Mr Black in an interview with Lokale Immobilia. “This building is to start a new generation of buildings in Warsaw,” he added.

He also assured that there was no rivalry between Orco’s Z∏ota 44 building and the nearby 160-meter Cosmopolitan tower on ul Twarda 2/4 that will deliver 252 apartments. “There’s no competition between Z∏ota 44 and Cosmopolitan. ... Buyer potential is infinite,” he said.

The work on Orco’s flagship project began in 2008, but the onset of the global financial crisis hit the firm hard, forcing it to suspend construction in March 2009. Then, in July 2009,

protests by residents of neighboring buildings led to the withdrawal of Z∏ota 44’s construction permit. Finally, Orco received the green light to continue work in October 2010.

Construction crews recently installed a steel spire on the top of the building, meaning it has reached its final height of 192 meters.

Karolina Kowalska

COURTESY OF ORCO PROPERTY GROUP

GELF raises €550 mln

Polish Mint to revitalize Warsaw river bank

COURTESY OF MENNICA POLSKA

COURTESY OF WIKIMEDIA COMMONS

IKEA to buy Wola Park

Inter IKEA Centre Polska has inquired whether the Office for Competition and Consumer Protection would allow for its takeover of Warsaw shopping mall Wola Park. A few days ago, IKEA signed a preliminary agreement to buy the mall. Wola Park is located on ul.

Górczewska in Warsaw’s Wola district. It comprises 58,000 sqm of GLA and houses nearly 200 tenants.

Since 2007 the mall has been owned by the PBW II Real Estate Fund.

JULY 22 – AUGUST 4, 2013, LI 18/28-29

Z∏ota 44 is located in Warsaw’s downtown

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Retail

JULY 22 – AUGUST 4, 2013

Warehouses

Retail space in Poland Upper Silesia stocking up on logistics space continues to grow

Construction activity across the country remains high.

Approximately 730,000 sqm is currently at the development

stage, of which more than 370,000 sqm is expected to enter the market in H2, bringing the entire stock delivered in 2013 to approximately 500,000 sqm. Earlier projections were even more optimistic, as more than 750,000 sqm was scheduled for completion in 2013, according to reports from the beginning of the year. However, some developers have revised their expansion plans, putting a few of their projects on hold.

After a period of increased interest in smaller cities, an evident shift towards major markets has occurred this year: 64 percent of this year’s new stock will be found in major Polish agglomerations, while only 29 percent in cities with fewer than 100,000 residents.

The prevalence of the largest metropolitan areas in these statistics is due to the delivery of several large projects, including Poznaƒ City Centre, Galeria Katowicka, Riviera (the new name for the

extended Wzgórze center), Auchan Bronowice in Kraków, and, to a smaller extent, Galeria Miejska Plac Unii in Warsaw. Most of these will cause some major reshuffle in the retail landscape in their respective markets. Similarly, in terms of the size of future projects, medium-sized and large schemes will dominate this year’s openings (more than 75 percent).

At the beginning of 2013, the average vacancy rate in Poland’s eight largest agglomerations stood at around 2.5 percent. Prime rents vary between major cities, with the highest found in Warsaw, followed by Wroc∏aw and the Katowice agglomeration.

However, it is expected that the large influx of new volume scheduled for this year may put some downward pressure on rents in underperforming assets. Rents in prime projects, unless located in small and saturated markets, should remain fairly stable.

KEK

New developments Currently, modern warehouse stock in Upper Silesia totals almost 1.4 million sqm (19 percent of the nationwide volume), making this region Poland’s second-largest market after Warsaw. The vast majority of warehouse stock is concentrated in the area of the Katowice

agglomeration. In Q1, the market grew by a modest 10,000 sqm, which was completed within Panattoni Park Mys∏owice. Prologis, Panattoni and Segro remain the three largest market players in Upper Silesia.

However, Hines’ acquisition of 100,000 sqm of joint floor space from the Prologis portfolio marked the company’s move into the region’s market.

Currently, new volume under construction totals 38,000 sqm and comprises the extension of Segro Industrial Park Tychy for Dayco (18,000 sqm), the extension of MLP Tychy (8,000 sqm) and the first building of the MLP Bieruƒ park (8,000 sqm). Speculative construction currently accounts for only 10 percent of emerging stock.

Headline monthly rents in Upper Silesia stand at between €3.1 and €3.9 per sqm, depending on the location and are fairly similar to average headline rents in other regions in Poland.

Effective monthly rates are between €2.45 and €3.4 per sqm. Limited availability and considerable demand for warehouse facilities in the region may result in upward pressure KEK on rents.

Upper Silesia warehouse market in Q1 2013 Summary statistics

Q1 2013

year-on-year change

12-month outlook

Net take-up* (sqm)

25,000

-56%

➡

Renewals (sqm)

34,000

+5%

➡

Completions (sqm)

10,000

-74%

➡

Vacancy rate (%)

6.7%

+130 bp

Headline rents (€/sqm/month)

3.1-3.9

0%

Effective rents (€/sqm/month)

2.45-3.40

0%

➡

More to come

Galeria Solna, completed in May 2013, delivered some 30,000 sqm of GLA

Net take-up in the warehouse market of the Upper Silesia region in southern Poland totaled 25,000 sqm in Q1 2013 and accounted for 43 percent of gross demand; the remainder is attributable to lease renewals, Jones Lang LaSalle’s “Upper Silesia Industrial Market Profile” report reads. The highest share of new take-up in 2012 was generated by logistics operators (52 percent), who often use facilities in Upper Silesia to supply the large consumer market of the nearby Kraków agglomeration.

The automotive sector represented 23 percent of the net take-up, while light production accounted for 11 percent. The former also accounted for the largest share of new demand in the first quarter of 2013 (60 percent). There is an increased interest in the region from automotive companies from South Korea, which consider Upper Silesia an attractive location due to the region’s proximity to their existing manufacturing facilities in the Czech Republic

and Slovakia.

Since 2009, despite limited speculative construction activity, the amount of completed space has stood at approximately 100,000 sqm annually. This trend is likely to continue over the next few years, the report said.

At the same time, new demand for warehouses in Upper Silesia absorbed much of the available stock and resulted in a drop in the vacancy rate from 19 percent in 2009 to 5 percent at the end of 2012.

In Q1 2013, the availability of space slightly increased to 6.7 percent, which represents 93,000 sqm of stock. However, this floor space is scattered across a number of facilities, out of which only one, Prologis Park Chorzów, offers floor space larger than 15,000 sqm in a single unit.

➡ ➡

The second quarter of 2013 saw 74,500 sqm of retail space in shopping centers delivered to the market within seven projects: four new schemes and three extensions of existing facilities. According to a recent report by Jones Lang LaSalle, the total shopping center stock in Poland has now hit 8.13 million sqm of retail space located in 353 projects.

The entire modern retail stock in Poland, including shopping centers, retail parks and outlet centers, totaled almost 11.3 million sqm of GLA, JLL’s “Polish Retail Market Profile – Q2 2013” report reads.

The new projects completed in Q2 include: Galeria Solna (30,000 sqm) in Inowroc∏aw, Galeria Mallwowa (11,000 sqm) in Skórzewo (Poznaƒ agglomeration), Galeria Podkowa (8,000 sqm) in Podkowa LeÊna (Warsaw agglomeration) and Galeria Zabrze (6,500 sqm) in Zabrze (Katowice agglomeration).

The remaining 19,000 sqm of space came in extensions of three projects: Auchan (approximately 11,000 sqm) in ¸omianki (Warsaw agglomeration), Hermes (some 5,000 sqm) in Skar˝ysko-Kamienna and Galeria Mazurska (3,000 sqm) in Ostróda.

The southern region is one of the key warehousing hubs in the CEE region

COURTESY OF DTZ

Nearly 400,000 sqm of retail space will be completed in H2 2013

* Net take-up: transacted space excluding renegotiations Source: Jones Lang LaSalle

JULY 22 – AUGUST 4, 2013

LOKALE IMMOBILIA – REAL ESTATE

Interview

Adjusting to the market Lokale Immobilia sits down with Robin Szustkowski, co-owner of developer Radius Projekt, to talk about current trends in Poland’s residential market and the firm’s diversifying portfolio Karolina Kowalska: You have recently launched construction on Nowy Raków residential estate in the Ochota district of Warsaw. The apartments have an attractive location, close to Park Szcz´Êliwicki and the Blue City shopping mall – are they selling well?

Robin Szustkowski: They are, especially now that we’ve adjusted apartment sizes and prices to the current demand.

The plot between ul. Instalatorów and ul. Bakalarska near Park Szcz´Êliwice and the PKP Raków railway station was put up for sale in 2010 by a company in liquidation. Having in mind the market had changed a lot since the crisis, we decided to build an estate with apartments that an average person could afford.

How has the market changed within the last few years?

Banks are less willing to give mortgage loans and if they do, they usually help finance smaller apartments. Therefore there is a need to provide buyers with a more efficient design. Before, it was a rule that a 60-sqm apartment comprised two rooms [one bedroom]. Right now it is essential to find ways to fit three rooms [two bedrooms] on less than 55 sqm.

Three months after construction was launched we sold more than 30 percent of the apartments in Nowy Raków and we owe it to their size and

prices. The apartments are priced from z∏.6,000 to z∏.7,000 per sqm and the average apartment comprises 42 sqm.

Our best sellers are 37-sqm two-room apartments.

We also made it a rule that each apartment should have a balcony. Moreover, we offer bigger two-room [one bedroom] apartments comprising 42 sqm. Other units, ranging from 48 sqm to 57 sqm comprise three rooms [two bedrooms]. The bigger apartments are quite flexible when it comes to the arrangement – the kitchen can be transformed into a fourth room [third bedroom]. Today buyers want to make the most of their space.

The more rooms, the better.

How soon do you expect to complete the development?

We are working on getting building permits for the next phases of the development, which total 75,000 sqm altogether, but the schedule depends on the sales. The first phase, once completed in the fall of 2014, will deliver 10,000 sqm of residential space.

Is your other residential estate, Centroom, selling so fast as well?

Centroom is selling more slowly, as it isn’t as conveniently located, but we also want it to be affordable for an average Pole. The estate is situated at the intersection of ul. ¸opuszaƒska and Al. Jerozolimskie. It is also a good address, providing a fast and easy access to the city center but not as attractive as Nowy Raków with its green surroundings.

You bought the land near the intersection of ul. ¸opuszaƒska and Al. Jerozolimskie in 2001. The plot was initially used for office, retail and warehouse areas. Why did you

decide to make it residential?

The location is quite attractive and we decided to designate 18,000 sqm of the plot and build residential units on it.

The construction was launched in 2010 and originally the biggest apartments measured around 80 sqm. But when it turned out that the market preferred smaller units, we managed to redesign the buildings.

Fortunately, we were also able to use some additional space for parking lots. The estate is being developed in four phases, two of which have already been completed. To date we have delivered 171 of the 355 apartments, 80 percent of which have already been sold. There are a lot of other attractive residential estates within the area, such as the well-established Skorosze a few blocks away with internal roads, playgrounds and a nearby shopping center, but our development, Centroom, is located far more conveniently, right next to a bus stop on Al. Jerozolimskie.

Your portfolio is quite diversified. Not only have you been specializing in residential real estate but also in renovating office buildings, is that right?

We offer retail and office space on ul. Foksal and Nowy Âwiat, a building on ul. Êw.

Barbary right next to the Ufficio Primo building and the old headquarters of the Democratic Left Alliance political party on ul. Rozbrat in the capital’s PowiÊle district. The party stayed in the building for some time after the sale, leasing it from us and then, when they moved out, we started commercializing the space.

Some companies prefer to have a more convenient location and a park in the vicinity, rather than class-A office space. They would rather pay €10 per sqm than €25 per sqm.

Sometimes it is better to sign a lease agreement with a smaller company that will stay in the building for eight years than a five-year lease with a big corporation.

The hotel at the back of the building is currently being leased by a military agency for which we have revitalized the scheme. At first we heard that the building was in such bad shape that it should undergo a thorough refurbishment. But it turned out it was in quite good condition.

In the future we would like to redevelop it and maybe turn it into an apartment building, as the location is perfect for that kind of development. We learned from our experience that it is much better to adjust to the market than to wait for it to adjust to our projects.

Currently you own 13 properties, some of which were built during the communist era.

Their legal status is often complicated. Aren’t you afraid of buying developments with unresolved claims?

It is our great advantage that we are not afraid of challenges and a complicated legal status doesn’t discourage us. We have just recently revealed the facade of our Âwi´tokrzyska-Nowy Âwiat scheme, the purchase of which required a lot of legal work. We had to deal with the pre-war owners who had rights to the land, as well as with the building’s most recent owner, TP SA. But it was worth it, and now the building is being refurbished. The experience we had with our scheme at the intersection of ul. Nowy Âwiat and ul. Foksal really helped. We did a lot of hard work to restore its functionality. Our philosophy is to face the challenge and make the best of it. ●

COURTESY OF JACEK BONECKI

Robin Szustkowski

www.wbj.pl

17

18

THE LIST

www.wbj.pl

JULY 22 – AUGUST 4, 2013

Education

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City & Guilds; LCCI; TELC; TOLES; Cambridge; TOEFL

✓

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Special courses for administration and office personnel; lawyers; doctors; teachers; IT industry; technical; construction; logistics; finance and banking; hotel and tourist services and gastronomy

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120.9 119.9 115.0 111.0

124.4 123.2 115.0 111.0

85,600 84,100 85,234 81,019

TFLS - Testing & Foreign Language Services ul. Boduena 4, 00-011 Warsaw 2 22 622-2058/22 622-5697 biuro@tfls.com.pl www.tfls.com.pl

12.0 11.8 11.5 10.9

12.0 11.8 11.5 10.9

5,587 5,438 5,205 4,658

Future Centre Training Corporation Krawczyk i Lipczyƒski Sp.j. ul. Mariensztat 8, 00-302 Warsaw 3 22 538-9111/22 538-9200 info@futurecentre.eu www.futurecentre.eu

7.9 7.3 6.1 5.7

7.9 7.3 6.1 5.7

6,628 6,512 6,223 4,210

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Language camps for teenagers; banking and finance; gastronomy; HR; IT; accounting; marketing; law; technical; medicine; tourism

Lang LTC Sp. z o.o. ul. S´dziowska 5, 02-081 Warsaw 4 22 825-1648/22 825-1648 lang@lang.com.pl www.lang.com.pl

7.2 7.0 8.2 7.4

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9,102 8,931 8,527 7,332

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Business; law; accounting; examination courses

Warsaw Study Centre Sp. z o.o., Sp.k. ul. Pandy 13/5, 02-202 Warsaw 5 22 824-2393/22 822-4618 cr@wsc.edu.pl www.wsc.edu.pl

6.5 6.6 6.4 5.2

6.7 6.6 6.5 5.2

4,728 5,018 5,155 6,545

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Courses preparing for the Polish presidency of the FCE; CAE; CPE; KET; PET; YLE; Council of the EU; courses for ZD; ZMP; DELF; DALF; BEC; auditors, prosecutors; TOEIC; IELTS; TOEFL; ZDfB NATO & EU

L2 - Language Consulting Sp. z o.o. ul. Marsza∏kowska 8/17, 00-590 Warsaw 6 22 622-4772/22 622-3051 info@language.com.pl www.language.com.pl

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4,600 4,600 4,600 4,000

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✓

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3.4 4.8 3.4 6.5

3.4 4.8 3.4 6.5

797 1,214 2,300 3,100

✓ ✓ ✓

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✓ ✓

Finance and banking; accounting; HR; IT; law; sales TOEIC; SEFIC; PTE GENERAL; and marketing; customer service; medicine; tourism PTHE YOUNG LEARNERS; LCCI and gastronomy

✓

✓ ✓

Professional & Business English; General English; specialised language training: presentations, negotiations, conducting meetings, business correspondence, finance and banking, legal, HR, sales and marketing, customer service, production management

✓

ACT Advanced Corporate Training Sp. z o.o. ul. Wilcza 31/5, 00-544 Warsaw 8 22 856-7407/22 625-2893 act@act.edu.pl www.act.edu.pl

PHU BEST Centrum J´zyków Obcych ul. Kopernika 1B, 43-100 Tychy 8 32 217-7801/32 747-3073 info@bestcentrum.pl www.bestcentrum.pl

2.6 2.0 1.6 2.3

2.8 2.6 2.2 2.8

1,500 1,500 WND WND

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2.6 2.6 2.3 2.4

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4,010 3,850 3,560 2,981

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1.7 2.1 WND WND

1.7 2.1 WND WND

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1.4 1.7 1.6 2.0

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1.2 1.3 1.6 2.1

12.3 13.5 11.2 13.7

2,000 2,000 WND 3,000

FCE; CAE; CPE; BEC; TOEIC; ILEC, TOLES, BULATS

✓

Other

Certificates

Number of branches in Poland / Year founded in Poland

Exam preparation

Number of teachers / Number of native speakers

2012 / 2011 / 2010 / 2009

Special courses

Spanish / Russian / Italian

Total of revenue Number (z∏. mln) students

Languages taught English / German / French

Revenue from language training (z∏. mln)

On-site (at schools) / Off-site / Conversation

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

Individual / Corporate / For children

Rank

Course types

1

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

New technologies: e-learning / Multimedia

A guide to Polish business and industry

Top local executive / Title

✓

Polish; Chinese; Swedish; Norwegian; Japanese

WND

1,453 210

63 2001

Jordi Dalet

Swedish

Accreditation from the Education Office; IATEFL - International Association of Teachers of English as a Foreign Language; British Council Poland; LCCI - London Chamber of Commerce and Industry; GLE - Global Legal English; ETS - Educational Testing Service; Cambridge ESOL Exam Preparation Centre

219 39

7 1993

PIFS; SUS; Accreditation: LCCI; ETS

500 60

2 2000

Robert Krawczyk

Chinese; Slovak; Czech; ISO 9001:2009; Accreditation Swedish; Hungarian and PASE; from University of Cambridge; ESOL other languages on Examinations client’s request

245 23

WND 1991

Katarzyna Kieszkowska

452 77

2 1991

Marzena Fryckowska

✓

Polish for foreigners; Portuguese; Dutch; Swedish; Norwegian; Chinese

Managing Director

Owner

Polish for foreigners; Greek; Albanian; Swedish; Portuguese; Dutch; Czech; Slovak; Danish

Gepard Biznesu 2010; EuroCertyfikat 2008; JakoÊç Roku 2008; Accreditation from the Education Office; ETS-Educational Testing Service; Lider Przedsi´biorczoÊci Roku 2006

500 100

5 1999

Maria CzajaDysiewicz

✓

Polish; Chinese; Japanese; Czech; Danish; Indian, Dutch; Norwegian; Portuguese; Swedish; Ukrainian

Accreditation from the Education Office; ISO: 9001; ETS; LCCI; ELCL Quality Alliance

115 23

4 1991

Bartosz Szyke

✓

Polish for foreigners; Czech; Portuguese

PASE; Data Group; Przejrzysta Firma Certifcate, PIFS Standard Services Training

100 20

1 1999

Ma∏gorzata Procner

Polish for foreigners; Chinese; Japanese; Norwegian; Swedish; Accreditation from the Education Danish; Dutch; Arabic; Office; ELCL QA (European Language Croatian; Czech; Slovak; Competence Licence); ETS; LCCI; Hungarian; Romanian; TELC; British Council Supplier Bulgarian; Ukrainian; Institution for Cambridge ESOL Portuguese; Greek; Examinations Turkish; Hindi; Persian; Hebrew; Latin

112 9

5 1996

Dariusz WiÊniewski

Polish for foreigners; Accreditation from the Education Bulgarian; Chinese; Office; Pearson Language Tests Czech; Latvian; Dutch; autorization; ISO 9001:2000; Rzetelna Norwegian; Romanian; Firma 2012; Cambridge English Serbian; Croatian; Language Assessment autorization; Swedish; Ukrainian; Euro Certyfikat 2007, 2010; Solidna Hungarian Marka - Primus Inter Pares 2010

72 4

4 1993

Bo˝ena Ziemniewicz

Ewa Krupska

✓

TOEIC; TOEIC-Bridge; WIDaF; TFI; FCE; CAE; CPE; PET; KET; BEC; TELC

✓ ✓

✓ ✓

English for beauticians; courses for financiers; doctors; tourism; office workers

Cambridge English Language Assessment: PET; KET; FCE; CAE; CPE; BEC; BULATS

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

International business communication; presentations; negotiations; meetings; correspondence; YLE; FCE; CAE; CPE; BEC; ILEC; ICFE; TOEIC ESP; finance; law; medicine; tourism; IT; Distance Learning: skype, e-learning platform

✓

✓

Polish for foreigners; Chinese

PASE; Quality English; Accreditation from the Education Office

25 7

3 1991

✓ ✓ -

✓ ✓

✓ ✓

Business; legal; cultural; course for the energy industry

✓

✓

Dutch; Chinese; Bulgarian

ISO; Accreditation of Ministry of National Education

120 40

WND 1997

FCE; CAE; BEC; LCCI; ILEC; TOLES; TELC; TOEIC

Director; Director of Studies

PASE; Szkolenia Najwy˝szej JakoÊci

Courses for seniors; courses for shift workers; business; technical; medical; IT; courses for foreigners

✓

Witold Buczyƒski; Iwona Âwi´cicka

Polish for foreigners; Arabic; Swedish; Chinese; Portuguese; Japanese; Czech and other languages

✓

✓ ✓

✓

President

✓

✓

President

President

President

Director

Director

Co-owner

Director

Agata Rybacka Business Development Director

THE LIST

2,011 1,946 2,228 2,124

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

Plimat - Centrum J´zykowe Maciej Pliszka ul. ¸ukasiƒskiego 7, 58-100 Âwidnica 14 74 853-6620/74 664-7508 biuro@plimat.pl www.plimat.pl

0.6 0.6 0.6 0.7

0.6 0.6 0.6 0.7

1,100 1,100 1,100 1,200

✓ ✓ ✓

✓ ✓ ✓

✓

2012 / 2011 / 2010 / 2009

Special courses

Exam preparation

KET; PET; FCE; CAE; CPE; BEC; YLE; TOLES; ILEC; ICFE; Business; finance; chemical; IETLS; TELC; TKT; DELE; TORFL 1-5; medical; technical ZD; ZDfB; ZDP; CELI; CILS; DELF; CEFP

TELC; KET; PET; FCE; CAE; CPE; IELTS; TOEFL; TOEIC; ESOL Trinity; DELE; GoetheInstitut

Business

Banking and Finance; Business Management; Day to day Polish; Cultural differences; Integration workshops; Committee of Banking Company presentation; Supervisory: B1-Treshold Accounting and Finance; Level; B2-Vantage Level; C2Polish language in diplomacy; Mastery Level Polish for the following industries: food, legal, media, real estate, pharmaceutical

Other

✓

✓

Czech; Ukrainian

Top local executive / Title

Accreditation from Mazowieckie Education Office; DIN EN ISO 9001-2008

50 2

2 1999

Joanna Lisiewska Manager

✓

✓

WND

Trinity College; TELC

14 2

1 2002

Maciej Pliszka

-

-

Polish for foreigners

Certyfikat Profesjonalna Firma

30 30

2 1992

Dariusz Pi∏atowicz

TELC; ETS

18 3

1 1995

Anna Guldynowicz

20 7

1 2009

Iwona Piwowarczyk

28 5

WND 1999

Sebastian B∏aszczyk

Meritum-Polish Language School ul. Poleczki 21, 02-822 Warsaw 15 22 436-7393/22 436-7390 info@meritum.com.pl www.meritum.com.pl

0.5 0.5 0.4 0.5

0.5 0.4 0.4 0.5

500 500 498 494

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

AKADEMOS Sp. z o.o. - Szko∏a J´zykowa PADEREWSKI ul. Symfoniczna 1, 20-853 Lublin 16 81 443-8805/81 443-8805 jezyki@akademos.com.pl www.jezyki.akademos.com.pl

0.3 0.3 0.5 0.4

0.3 0.3 0.5 0.4

254 303 314 335

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

Business; legal; medical; technical; IT; Polish for foreigners

TOEIC; TOEFL; TFI; IELTS; SAT; YLE; KET; PET; FCE; CAE; CPE; BEC

✓

Blackbird Academy (Pff Group Sp. z o.o.) ul. Krakowskie PrzedmieÊcie 67/11, 17 00-071 Warsaw 22 828-1501/22 828-1501 office@hello-blackbird.com www.hello-blackbird.com

0.2 WND WND WND

0.5 WND WND WND

150 WND WND WND

✓ -

✓ ✓ ✓

✓

Introductory courses in Polish culture and the work culture in Poland

NA

✓

EBL - European Business Languages ul. Miklaszewskiego 3, 02-776 Warsaw NR 22 643-1248 ebl@ebl.com.pl www.ebl.com.pl

WND WND WND WND

WND WND WND WND

3,800 3,500 3,000 2,800

✓ ✓ -

✓ ✓

✓

Business

TOLES; ILEC; IELTS; ICFE; BEC; Goethe-Zertifikat; DELF; DALF; DELE; DFP; Certificate of Polish as Foreign Language

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose.

Research for The List was conducted in April 2013. Number of employees is as of March 2013. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. Reported in cooperation with the Polish Association for Standards in Language Education.

Certificates

Number of branches in Poland / Year founded in Poland

13.8 14.0 16.5 7.8

Total of revenue Number (z∏. mln) students

Languages taught

19

Number of teachers / Number of native speakers

New technologies: e-learning / Multimedia

1.2 1.3 1.3 1.3

Revenue from language training (z∏. mln)

Spanish / Russian / Italian

On-site (at schools) / Off-site / Conversation

Szko∏a J´zyków Obcych Centrum Edukacji Grupa ORLEN ul. Kobyliƒskiego 25, 09-400 P∏ock 12 24 365-8619/24 365-8624 sjo@centrumedukacji.pl www.centrumedukacji.pl

Rank

Individual / Corporate / For children

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

www.wbj.pl

English / German / French

JULY 22 – AUGUST 4, 2013

✓

✓

✓

✓

Polish for foreigners

Polish for foreigners

Polish for foreigners

WND

WND

Owner

Director

Director

General Manager

Director

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.

20

MARKETS

www.wbj.pl

JULY 22 – AUGUST 4, 2013

Stocks report

world stock indices DJIA

NASDAQ

15,548.54 (Jul 18 close)

S&P500

3,611.28 (Jul 18 close)

0.57% (for the week)

FTSE100

1,689.37 (Jul 18 close)

0.92% (for the week)

DAX

6,630.67 (Jul 19 close)

0.86% (for the week)

1.31% (for the week)

Stocks up worldwide

NIKKEI 8,331.57 (Jul 19 close)

14,589.91 (Jul 19 close)

1.45% (for the week)

0.58% (for the week)

CHANGE: 15.93% (year to July 18)

CHANGE: 16.03% (year to July 18)

CHANGE: 15.52% (year to July 18)

CHANGE: 10.01% (year to July 19)

CHANGE: 7.11% (year to July 19)

CHANGE: 36.51% (year to July 19)

52-week high: 15,589.40

52-week high: 3,624.54

52-week high: 1,693.12

52-week high: 6,875.60

52-week high: 8,553.74

52-week high: 15,942.60

52-week low: 12,471.49

52-week low: 2,810.80

52-week low: 1,329.24

52-week low: 5,478.00

52-week low: 6,324.53

52-week low: 8,328.02

Omar Arnaout Noble Securities SA Stock markets worldwide have seen increases over the past few weeks, which has certainly also had a positive effect on the Warsaw Stock Exchange.

The boost of optimism came from the US stock market, where corporate earnings recorded good results. It was also due to US Federal Reserve chairman Ben Bernanke reassuring investors that quantitative easing is set to continue for some time.

From the point of view of the European economy, a shot of optimism came with the European Central Bank loosening its lending rules.

An increase in the WIG20 futures in mid-July was not as impressive as that seen earlier in the month, and especially on July 19 investors could see uncertainty in the market, with no clear direction generator.

Major indices WIG

46,399.74 (July 19 close)

WIG20

2,313.31 (July 19 close)

19.07

18.07

17.07

16.07

15.07

12.07

11.07

10.07

09.07

08.07

05.07

04.07

03.07

19.07

18.07

17.07

16.07

15.07

12.07

11.07

10.07

09.07

2,100 08.07

43,000

05.07

2,160

04.07

43,800

03.07

2,220

02.07

44,600

01.07

2,280

28.06

45,400

27.06

2,340

26.06

46,200

25.06

2,400

24.06

47,000

02.07

52-week low: 2,101.10

01.07

Change year to July 19: -11.91%

28.06

52-week low: 38,982.82

27.06

52-week high: 2,628.36

Change year to July 19: -3.55%

26.06

Change for the week: 0.46%

25.06

52-week high: 48,495.01

24.06

Change for the week: 0.54%

Top 5 WISTIL B3SYSTEM IGROUP EFH KREC

Closing 24.00 0.31 0.12 0.82 6.59

% change (week) 52-week high 29.73 28.50 24.00 0.91 20.00 0.41 17.14 3.10 17.05 6.60

52-week low 8.10 0.24 0.10 0.34 2.52

Top 5 PEKAO GTC PGE PKOBP BRE

Closing 159.00 8.22 15.07 36.79 395.00

% change (week) 4.61 4.05 3.93 2.34 2.21

52-week high 164.44 10.25 19.54 38.50 405.00

52-week low 126.53 5.77 14.05 30.50 268.80

Bottom 5 MEDIATEL FOTA AGROTON CALATRAVA BBIZEN

Closing 0.32 0.41 1.63 0.02 0.09

% change (week) -52.94 -36.92 -33.47 -33.33 -25.00

52-week low 0.25 0.30 1.13 0.02 0.08

Bottom 5 EUROCASH LOTOS BOGDANKA KGHM JSW

Closing 56.00 37.53 102.15 114.90 65.54

% change (week) -6.67 -4.26 -3.90 -3.85 -2.77

52-week high 66.56 45.45 143.00 179.15 101.00

52-week low 36.08 24.02 97.20 100.80 60.00

52-week high 1.98 6.99 13.87 0.53 0.30

Currency report

Little upside in z∏oty’s future

Other indices sWIG80

11,837.95 (July 19 close)

NewConnect

301.13 (July 19 close)

52-week high: 12,044.12

WIG-Banki

6,906.83 (July 19 close)

SOURCE: WSE

19.07

18.07

17.07

16.07

15.07

12.07

11.07

10.07

09.07

08.07

05.07

04.07

03.07

19.07

18.07

17.07

16.07

15.07

12.07

11.07

10.07

09.07

08.07

6,300

05.07

297.0

04.07

6,440

03.07

298.8

02.07

6,580

01.07

300.6

28.06

6,720

27.06

302.4

26.06

6,860

25.06

304.2

24.06

7,000

02.07

52-week low: 5,479.94

01.07

Change year to July 19: 2.73%

28.06

52-week low: 296.70

27.06

52-week high: 6,987.45

Change year to July 19: -9.35%

26.06

Change for the week: 2.94%

25.06

52-week high: 353.60

24.06

Change for the week: -0.09%

306.0

Adam Narczewski X-Trade Brokers DM SA

19.07

18.07

17.07

16.07

15.07

12.07

11.07

10.07

09.07

08.07

05.07

52-week low: 9,242.22

02.07

01.07

19.07

18.07

17.07

16.07

15.07

12.07

11.07

10.07

09.07

11,600 08.07

2,700

05.07

11,660

04.07

2,740

03.07

11,720

02.07

2,780

01.07

11,780

28.06

2,820

27.06

11,840

26.06

2,860

25.06

11,900

24.06

2,900

28.06

Change year to July 19: 12.41%

27.06

52-week low: 2,211.09

26.06

Change year to July 19: 12.19%

25.06

Change for the week: 0.45%

24.06

52-week high: 2,979.55

04.07

2,881.70 (July 19 close)

Change for the week: 0.78%

03.07

mWIG40

This is typical behavior from the point of view of technical analysis and is happening due to the fact that the market is within the borders of the 38.2 percent to 41.4 percent retracement of the decrease movement that was initiated in the first week of June. Importantly, however, probabilities are currently on the side of the bull market.

Stocks that did well for investors on the Warsaw Stock Exchange were GTC and PGE. Both noted increases after four consecutive weeks of decreases. On the other hand, investors would have liked to avoid the slumping KGHM and especially Eurocash. Critically, KGHM broke a significant support level at z∏.109.60, signaling that the bear trend for the copper producer could continue in the short term. ●

The trading world is still focused on the US Federal Reserve and statements made

by FOMC members. Even though it seems the Fed’s quantitative easing program will be reduced this year, Fed chairman Ben Bernanke is trying to keep the market in suspense, stating the current situation still requires the Fed to continue buying bonds.

Those statements gave a breather to the EUR/USD, which after weeks of declines finally rebounded from levels below $1.28 all the way to above $1.31. I do not see much upside for the euro at this moment and in the upcoming weeks we should see a downward movement of the main currency pair.

In the local market, the main topic was the government increasing the budget deficit by z∏.16 billion (to

z∏.51.6 billion) and the suspension of the 50 percent debt-to-GDP safety threshold. While that seemed like bad news, in reality the measures will not change much.

The established limits were a fiction and a higher deficit was expected.

In the middle of July, the z∏oty remained under the influence of external factors, especially the Fed and the EUR/USD. The EUR/PLN, which had traded around the z∏.4.32 level, accelerated its corrective movement to reach z∏.4.24, while the USD/PLN tumbled to z∏.3.23 from z∏.3.35.

In the short term, the z∏oty could still appreciate a little more, but in the next couple of months it will be hard for the currency to achieve lower levels against the EUR or USD. ●

currency rates 3.2267 19.07

18.07

17.07

16.07

15.07

19.07

18.07

17.07

16.07

15.07

12.07

12.07

3.2

0.0995

SOURCE: NBP

3.2300

3.2524

3.2862

3.3522

0.0997

3.3022

100JPY/PLN

3.4

0.1000

0.1009

0.0999

0.1006

0.1016

3.4321 19.07

18.07

17.07

16.07

15.07

19.07

18.07

17.07

12.07

3.4

16.07

RUB/PLN

0.1020

3.4329

3.4492

3.4516

3.4928

3.5

3.4633

4.9343

4.9181

4.9273

4.9286

5.0252

4.9595

CHF/PLN

3.6

4.90

15.07

19.07

18.07

17.07

16.07

15.07

12.07

5.05

12.07

3.2348

3.2362

3.2410

3.2955 3.3201

4.2457 19.07

18.07

17.07

16.07

15.07

GBP/PLN

5.20

3.2

12.07

4.2

3.2735

USD/PLN

3.4

4.2453

4.2624 4.2788

4.2922

4.3295

EUR/PLN

SPORTS

JULY 22 – AUGUST 4, 2013

www.wbj.pl

21

American football

Giants leave Eagles as bridesmaids again, finish off return season with 29-13 championship win The Wroc∏aw Giants claimed the mantle of Polish champions of American football at the National Stadium in Warsaw on July 14, prevailing 2913 over the Warsaw Eagles in the Trawnik Producent SuperFina∏ VIII. The 16,500 fans in attendance saw Jamal Schulters take MVP honors after he scored four touchdowns.

The Giants, who won national titles as the Wroc∏aw Crew in 2007 and again in 2011, became the first team to win three Topliga championships.

SuperFina∏ VIII was, in fact, a pairing of the only two teams in the country to have won multiple titles. The championship game loss was the second in a row for the Eagles, who fell in last year’s title game to Seahawks Gdynia.

“The Eagles are a very well-trained and well-prepared team,” said Giants head coach Mott Gaymon. “It was a really tough game, but we survived their attack and all of my

players did a great job. I know how much it means to them.”

For Mr Schulters, the MVP award was the cap on an incredible season that saw him score a total of 35 touchdowns in 12 games, including nine in just two postseason contests.

His tiptoeing 44-yard touchdown run up the left sideline in the fourth quarter buried the Eagles and left no doubt as to which team was the better one on this day.

Mr Schulters was humble in victory, however, saying, “To be honest, the MVP award should go to my offensive line, because without them I would not have gained any yards.”

Mr Schulters out-gained the entire Eagles team on Sunday, picking up 175 yards on 31 carries to go along with 14 more yards on two receptions.

Simply the best Just as they had done a year earlier, a multitude of fans lined the concourses of the National Stadium up to four hours before kickoff, taking part in a day-long celebration of the American football season in Poland. Those who left the outdoor picnic in time for the coin toss saw former NFL kicker Ryszard Szaro perform

the ceremony.

They then saw a first half that was eerily like the one played between the two teams earlier in the season, but without the muddiness that characterized that game. Wroc∏aw led by the exact same halftime score, 9-0, as they had in the earlier encounter, breaking a scoreless deadlock in the second quarter with a sack in the end zone for a safety and a one-yard touchdown run by Mr Schulters.

Both scoring plays in the second quarter were representative of the flow of the game.

Under pressure all evening, Eagles quarterback Shane Gimzo had a rough time of things thanks to eight sacks by the Wroc∏aw defense. Mr Gimzo finished the game nine of 17 for just 108 yards and a touchdown.

The Eagles were able to move the ball a bit, but the Giants stood tall nearly every time their goal line was threatened. Wroc∏aw went up 16-0 with an 11-play drive in the third quarter, before the Eagles finally got on the board on a 16-yard touchdown reception by running back Witold Szpotaƒski. The Giants then quickly went

COURTESY OF GIANTS WROC¸AW/SKWIOT.PL

Wroc∏aw tops Warsaw for third Polish title

Giants running back Jamal Schulters scored four touchdowns and earned MVP honors in Wroc∏aw’s win over the Warsaw Eagles three-and-out, giving Warsaw a chance to get back into the game, but two sacks on the next Eagles’ drive got the game back under control for Wroc∏aw.

Giants quarterback Bartosz Dziedzic was relatively efficient in guiding the offense, going nine for 12 for 99 yards, albeit with an interception. His long pass to Mark

Philmore early in the fourth quarter set up Mr Schulters again, and the Giants led 22-7 early in the fourth quarter.

The Eagles would get a consolation touchdown late, after the fourth touchdown run by Mr Schulters.

The Eagles, one of the hottest teams in the Topliga towards the end of the season, ultimately had no answers for

a Giants team that led the Topliga in most statistical categories this year. Mr Szpotaƒski summarized the game best, saying, “The Giants showed class, and they were simply better.” He was, however, slightly off – after claiming their third Polish championship, the Giants are now simply the best.

Alex Zarganis

22

LIFESTYLE

www.wbj.pl

Photography exhibition

JULY 22 – AUGUST 4, 2013

Concert

An exhibition of photographs

by Stanis∏aw Wilhelm Lilpop, the first photographer in Poland who introduced color into stereoscopic photography, opened on July 4 and will last until mid-November.

Born and raised in a famous industrialists’ family in Warsaw, Mr Lilpop was the father of writer Anna Iwaszkiewiczowa and was also the founder of the town of Podkowa LeÊna, designed in accordance with the ideals of the garden city movement of the early 20th century. He is best remembered, however, for his impact on Polish photography.

The exhibition is being held for the 150th anniversary of Lilpop’s birth. It features around 180 of his photographs from the years 1908-1930, some of them taken using 3D techniques.

The photographs serve as

SHUTTERSTOCK

‘I Will Be Photographing It in Colour’ The Beginning of the 20th Century in Stanis∏aw Wilhelm Lilpop’s Three-Dimensional Photographs July 4-November 17 Dom Spotkaƒ z Historià ul. Karowa 20, Warsaw

COURTESY OF STANIS¸AW WILHELM LILPOP/ANNA AND JAROS¸AW IWASZKIEWICZ MUSEUM/FOTONOVA

History, in color Smoke on the Oder

Roger Glover (left) and Steve Morse (right)

One of Mr Lilpop’s color photographs, taken in May 1909 an important record of both everyday life and historical events during the first few decades of the 20th century.

The subject matter includes Warsaw social scenes, Mr Lilpop’s hunting adventures, and several journeys across Europe. There is also an exceptional collection of photographs taken during his

journey to Africa in late 1910 and early 1911.

Visitors will have the opportunity to view original archives related to the photographer, his camera, films, and other memorabilia.

Cathy Liu

For more information, log on to: dsh.waw.pl/en

Deep Purple Hala Stulecia Wroc∏aw July 30 Hard rock icons Deep Purple are coming to Poland once again, this time to Wroc∏aw.

The British veterans, who have been playing for 45 years, have visited Poland numerous times in the past – hardly a surprise since they have a strong fan base in the country. Indeed, the hard-rock pioneers have built up plenty of popularity around the globe, claiming to have sold over 100 million records worldwide.

The introductory guitar riff to the band’s hit “Smoke on the Water” is one of the best-known in the history of rock and roll,

and is often one of the first things beginning guitar players learn. You even may be humming it in your head right now.

But the band is no one-hit wonder. With 19 studio albums in their discography and a long list of popular songs, they’ve influenced musicians the world over. While the band has received critical acclaim, it still lacks the recognition it deserves: they have never recorded a number-one single in the US or UK and have yet to be inducted into the Rock & Roll Hall of Fame.

With all the years on stage and numerous lineup changes, the foundation of the band remains relatively stable.

Drummer Ian Paice, bassist Roger Glover and vocalist Ian

Gillan still make up the core of the group, though all have had their breaks from the band. The newer members are guitarist Steve Morse, who joined the band in 1994, and Don Airey, who replaced founding member and keyboardist Jon Lord in 2002. Sadly, Mr Lord passed away last year.

Despite its past successes, the group refuses to rehash the same-old greatest-hits set for their tours. They’re still composing, and in April released their latest album “Now What?!”

To that question there can only be one answer: Keep on rockin’.

Jacek Ciesnowski

Tickets for the show start at z∏.180

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 Old Town Square 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 Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

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

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

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

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.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

LAST WORD

JULY 22 – AUGUST 4, 2013

www.wbj.pl

23

Tech Eye

We used to live in a world of discrete technologies. Phones were just phones, cameras were just cameras, latex undergarments were just for perverts, and so on.

But that world is gone. Oncestodgy product categories have become pleasantly blurred through constant refinement and innovation, much like the club-footed hermaphrodite who frequents Techeye’s local tavern becomes pleasantly blurred after seven or eight pints. Gadgets that used to have a single purpose

now have many.

This trend, called technological convergence, is most visible in smartphones. An inexhaustible variety of apps has turned these devices into the Swiss army knives of the digital world.

You name it, and your smartphone can probably do it (provided it has the right app).

Interestingly, while convergence has brought many functions to a single device category, there’s also an intriguing amount of … not quite divergence, but rather specialization

COURTESY OF SAMSUNG

The Galaxy S4 Zoom

… occurring in smartphone hardware.

Samsung is a case in point. The firm is clearly on a quest to create moderately specialized products catering to practically every sub-niche in the market.

There’s the Galaxy Rugby Pro, whose rugged frame is intended for the terminally clumsy. Then there’s the 6.3-inch Galaxy Mega, for the giant-handed among us. The Galaxy Core, with its dual, simultaneous SIM cards, is manifestly designed for the schizophrenic. And let us not forget the Galaxy Beam, whose existence constitutes startling evidence that a sizable demographic lusts after smartphone-projector hybrids.

Meanwhile Techeye is anxiously awaiting the Galaxy Lazy Bastard, which will fetch beer and snacks from the kitchen. But we’ve no idea when that will be developed, so instead let’s look at Samsung’s latest, the Galaxy S4 Zoom (£440 off-contract).

This device is squarely aimed at would-be photographers who can’t be asked to tote an SLR camera around. The Zoom shares its design with the recently released S4 Mini, which gives it a 4.3-inch AMOLED screen, a dual-core processor and

COURTESY OF NOKIA

Picture perfect smartphones?

The Lumia 1020 1.5GB of RAM. Like the S4 Mini (and the S4), it has a plastic body that gives the lamentable impression of cheapness.

As for its unique selling point, the Zoom packs a 1/2.33-inch, 16MP BSI CMOS sensor as well as a 10x optical zoom (as opposed to the simple digital zoom you find in most smartphones). There’s also a 1.9MP frontfacing camera.

Unfortunately for Samsung, the impressions of the Zoom we’ve seen so far have ranged from underwhelmed to disappointed. Common complaints include inconsistent photo quality and slow shutter speed.

As a phone the Zoom seems to be a decent piece of hardware; as a camera, it’s not easy to recommend.

But photophiles looking for a strong smartphone/camera combination needn’t worry – Nokia’s recently announced Lumia 1020 ($700 offcontract) should tickle their fancy.

In its flailing attempts to remain relevant in the world of mobile communications, Nokia has latched onto two differentiators: Windows Phone 8 and high-end photography. The Lumia 1020 takes the latter to a new extreme.

This handset combines a 41MP camera sensor with special optical image stabilization, six-lens optics and the ability to zoom out after you’ve taken a picture. The display is a respectable 4.5-inch AMOLED screen, with a 1.5GHz dual-core processor and 2GB of RAM inside.

It’s the details that matter, though. Compared to the Galaxy S4 Zoom, the Lumia 1020 offers a sassier polycarbonate body and a higher pixel count in the display. It’s longer and wider than the Zoom, but also markedly thinner and lighter.

Plus the camera is nicer.

In summary, if you’re looking for a smartphone with a nice camera, Nokia’s latest trumps Samsung’s.

Now, if only it came with latex undergarments … ●

Ever chatted up a pleasantly blurred hermaphrodite? Let us know: techeye.wbj@gmail.com

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

reklama_I_IN_POLAND_2012_v2.indd 1

2011-08-08 09:38:47