WBJ #27-28 2011 by Valkea Media S.A.

A SPECIAL PULL-OUT SUPPLEMENT FEATURING: Why so few Polish firms lobby in Brussels

Environmental policy during the presidency

WWW.WBJ.PL

Rados∏aw Sikorski on Polish optimism

VOLUME 17, NUMBER 27-28 • JULY 11-24, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

• Agents, developers and foreign clients • The world’s narrowest home • Top residential brands 13-17

Big deal Polkomtel has been bought in Poland’s biggest-ever takeover 5

Since 1994 . Poland’s only business weekly in English

Make the connection Poles are some of the most active users of social media in Europe. Is your business engaging them? 8-9

Rocky start Some praise, some criticism, and much controversy marked Prime Minister Donald Tusk’s first speech before the European Parliament

Miller interview In an exclusive interview with WBJ, former PM Leszek Miller talks CIA black sites, the Blida case and his potential 6-7 future in parliament

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

Property & facility management firms 20-21

In this issue

SHUTTERSTOCK

SPECIAL PULL-OUT SUPPLEMENT: POLAND’S PRESIDENCY News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . . . .5 Interview . . . . . . . . . . . . . . . . . . . .6-7 Cover Story . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . .10-11 Listed Firms . . . . . . . . . . . . . . . . . .12 Lokale Immobilia . . . . . . . . . . .13-17 Business Environment . . . . . . . . .18 Markets . . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

NEWS

www.wbj.pl

Poland blamed for emissions law failure

JULY 11-24, 2011

IN THE SPOTLIGHT

Numbers in the News

Polish abortion law

z∏.18.1 billion is the size of the deal in tycoon Zygmunt Solorz-˚ak’s takeover of Polkomtel, the largest in Poland’s history.

At the begining of July, the European Parliament voted against a draft resolution to increase the targeted EU-wide reduction in CO2 emissions from 20% to 30% by 2020, based on 1990 levels. Some MEPs suggested Poland held the lion’s share of the blame. Dutch Green MEP Bas Eickout said that a “Polish focus” might have swayed the vote.

Poland’s motorways directorate has finished collecting offers from companies interested in building the sections of the A2 highway left uncompleted by Chinese firm COVEC. The two stretches of road, at a combined length of 50 kilometers, will form part of the section that will connect Warsaw and ¸ódê. The Polish government canceled its contract with COVEC after subcontractors employed by the Chinese firm went on strike, saying they hadn’t received payments on time.

Poland wants Romania, Bulgaria in Schengen zone During its presidency, Poland will push for Romania and Bulgaria’s quick accession to the EU’s passport-free Schengen area. Interior Affairs Minister Jerzy Miller wants the accession decision to be made during the September Justice and Home Affairs summit it Brussels. However, some Western European countries are reluctant to open their borders to the fellow EU members. They want Bulgaria and Romania to beef up their fight against corruption and organized crime first.

650,000 is how many Polish households have loans taken out in the Swiss franc

€133 million

SHUTTERSTOCK

Search for new A2 contractors

€3.6 billion

is the size of the leveraged loan Mr Solorz-˚ak took out to finance his purchase, reportedly the largest in Europe since 2009.

is the amount that Poland’s contributions to the EU will be reduced by, as a result of the EU’s 2010 budget surplus

Abortion is once again a topic of debate in Poland. In early July, lawmakers in the Sejm voted in favor of sending a draft bill that would ban all abortions outright (without provisions for rape, incest or the health of the mother) to the committee stage. Parliamentarians decided against the Democratic Left Alliance Party’s motion to dismiss the proposal after the first reading, with 254 voting in favor of the draft being passed on to parliamentary committees for further discussion, 151 voting against, and 11 abstaining. The draft law, which aims to eliminate all exceptions that currently allow women to terminate pregnancies, was submitted to parliament by antiabortion activists at the foundation PRO - Right to Life, which has gathered some 600,000 sig-

natures in favor of its proposal. In a statement, the foundation said it will now continue to lobby political parties and MPs, and hopes that protection of life becomes one of the leading themes when parties campaign in the run-up to this autumn’s parliamentary elections. The Parliamentary Committee for Social Policy and Family and the Parliamentary Committee on Health have until September 1 to present their conclusions about the proposed amendment, Rzeczpospolita reported. Polish President Bronis∏aw Komorowski announced that he would oppose the legislation. The current provisions in Poland’s family planning law are the “best politically available to protect unborn life, while not forcing people to heroism, because heroism – for

example in the case of babies conceived from rape or incest – is a matter of individual decision and should not be imposed by law,” the Polish Press Agency quoted him as saying. Poland’s anti-abortion law, in place since 1993, is one of the strictest in Europe. Abortions in Poland can only be performed in three situations: when the life or health of the mother is at risk, if the fetus is damaged, or if the pregnancy is the result of a criminal act. While official data says there are only a few hundred abortions in Poland annually, non-government sources put the number at over 150,000, meaning more abortions take place now illegally than in hospitals in the early 1980s, before the original ban. Thomas Kolasa, Alice Trudelle

Quote of the Week “The most important task is to rebuild trust and faith in the idea that Europe makes sense – that the EU is truly a worthwhile invention.” Prime Minister Donald Tusk in an interview with the Financial Times

Figures in focus A taxing issue Tax revenue for 2009 in % of 2009 GDP, selected EU countries 50

On WBJ.pl Follow the EU presidency As Poland takes the reins of the presidency of the Council of the European Union for the first time, stay up to date with all the major stories from Brussels to Warsaw. Whether news, analysis or multimedia, WBJ.pl follows every twist and turn. Log on to follow this historic journey.

Denmark Sweden

Belgium

France

Germany

Poland

Slovakia

Latvia

Source: Eurostat

Company index AD Dràgowski agency................16 Henpol ........................................13 Polish Post..............Supplement 1 AIB Polonia Property Fund ........13 Home Broker..............................15 PKP ........................Supplement 1 Apax..............................................5 ITI..................................................3 Polish Travel ..........Supplement 6 Ataner ........................................16 J.P. Morgan ..................................3 Polkomtel ................................2, 5 Attention ......................................8 JOT-BE NieruchomoÊci ............16 Polski Holding Farmaceutyczny ..16 Bank Gospodarstwa Krajowego 12 JSW ............................................12 Pó∏noc NieruchomoÊci ..............16

DATELINE

July/August JULY 14 Event:

BASTILLE DAY

ECONOMIC DATA

Poland’s ambassador to Libya, Wojciech Bo˝ek, now resides in Benghazi. “We believe the provisional government in Benghazi to be our only credible partner,” said Foreign Minister Rados∏aw Sikorski. ●

Event:

The National Bank of Poland releases balance of payments data for May.

Event:

Biedecki, Olejnik ....Supplement 6 Kropla Beskidu ......Supplement 7 Qualcomm Poland ....................18

ACCA PRESIDENT'S DEBATE

Event:

“Marketing the Polish presidency of the EU Council” This conference will focus on factors influencing economic growth and regional development. Location: Hotel Intercontinental www.accaglobal.com/presidentsdebate

ECONOMIC DATA The National Bank of Poland releases money supply data for June.

SOCIAL MEDIA – IS YOUR COMPANY PREPARED?

Event:

Conference for CEOs, CMOs or heads of digital marketing. Location: Adgar Plaza, Warsaw

Bertelsmann ................................3 Knight Frank ..............................13 PricewaterhouseCoopers ..........18 KPMG..........................................18 Progres ......................................16 Biedecki, Boeing ........................................18 Loco ............................................15

Organized by CCIFP annual event to celebrate France’s national holiday. Location: Endorfina Restaurant, Warsaw

Polish ambassador now in Benghazi

Bank Pocztowy ............................8 JW Construction ............14, 15, 16 Praktycy.com................................8 Bank Zachodni WBK..................13 KGHM ..........................................5 Presspublica ................................5

Bouygues Immobilier ................15 Lubelski W´giel Bogdanka........12 Bracia Strzelczyk NieruchomoÊci16 Martinisation London ................14 BZ WBK ........................................3 McDonald’s Polska ....................18 C&A ............................................13 Mecom Group ..............................5 Central European

Mecom Poland Holdings ............5

Media Enterprises ......................3 Metrohouse & Partnerzy ..........16 Coca-Cola ..............Supplement 7 Microsoft ................Supplement 7 Coface ........................................18 Millward Brown SMG/KRC ....8, 16 COVEC ..........................................2 Neinver Polska ..........................13 Credit Agricole CIB ......................5 New World Resources ..............12 DEKA Immobilien ......................13 News Corp ..................................3 Deutsche Bank ......................5, 12 Nomura ........................................3

AUGUST 5-7 ARABIAN HORSE DAYS Event:

The Polish National Show is one of the most competitive displays of superlative quality equines in the world. Location: Janow Podlaski Stud www.prideofpoland.pl

Dom Development ..............14, 16 Orange ....................Supplement 7 Dun & Bradstreet ......................18 Orlen....................5, Supplement 7 Facebook ......................................8 Panattoni Europe ......................16

Royal Bank of Scotland ..............5 S.a.r.l...........................................13 Sadovaya Group ........................12 Scania......................Supplement 7 SM Salwator ..............................16 Societe Generale..........................5 Stock Spirits ................................8 Takaratomy ................................23 Tauron ..........................................8 Telenor..........................................5 Time Warner ................................3 Troika Dialog ..............................12 TVN ..............................................3 TVP ..............................................3 Valinor ........................................12

FedEx..........................................18 Peugeot ..................Supplement 7 ViOil ..............................................8 Fox Broadcasting Company ........3 PGE ..............................................5 Vodafone ......................................5 Gant Development ....................16 PGE Energia Odnawialna ............8 Von der Heyden Group ..............13 Gaz System ............Supplement 1 PGNiG ........5, 18, Supplement 1,6 Warsaw Stock Exchange ............5 Goodman ....................................16 PKO ............................................16 Weglokoks ....................................5 Google ......................................5, 8 PKO Bank Polski..........................5 WSE ........................................8, 12 gowebtrade.com ........................19 PKO BP ..................................8, 12 X-Trade Brokers Gremi Media ................................5 PKP ............................................17 Dom Maklerski SA ....................19 Grupa Inwestycyjna Hossa ........16 Point Group Business Unit ........18 Yandex ..........................................5 HB Reavis ..................................17 Polfa Tarchomin ........................16 Yareal Polska..............................13

NEWS

JULY 11-24, 2011

www.wbj.pl

Poland’s EU presidency

Tusk gets mixed reception in Strasbourg

Controversy followed Prime Minister Donald Tusk’s speech at the European Parliament in Strasbourg, where he presented Poland’s priorities for its six-month presidency of the EU Council. Mr Tusk stressed the need for continued European integration and solidarity. “The answer to the crisis is more Europe and more integration … the European Parliament is first and foremost an institution and place where there has never been a lack of belief in a united Europe,” the Polish PM said. Mr Tusk said the bloc was based on solidarity and that the reason for the current crisis in Europe was not the EU, its institutions or its budget. He also appealed to the audience to be more grateful for Europe’s achievements. “It cannot be so that here in

Europe, there are rising doubts in [Europe’s] sense, while outside [Europe], everybody wishes to live in conditions similar to those we have,” he said. The Polish PM strongly defended the principle of the free movement of labor in Europe, saying the best way to protect the EU does not lie in creating barriers within the bloc.

those Poles who live in the Netherlands should be sent back to their country. Mr Tusk was also taken to task by Nigel Farage, leader of the UK Independence Party. Referring to Denmark’s decision to reinstate customs controls at its borders, Mr Farage asked: “Why are you pretending that everything is going well, when Friend Europe is in a and foes deep structural Mr Tusk’s speech crisis? Greece, was warmly Portugal and received by the Spain will not last president of the European Coun- Prime Minister Tusk’s speech in Strasbourg was met with some strong criticism in the euro zone, and Denmark has cil, José Manuel Barroso, who said that Europe over by the Polish prime minis- realize what is going on. We quite rightly broken off from don’t want jobless Poles, the Schengen Agreement.” now required “historic leader- ter’s optimistic tone. “We have just heard the Romanian beggars and people ship,” which he believes the Polish PM and Poland can pro- worst speech ever given by a from North Africa or Turkey Home front new president of the EU in Europe,” said Dutch MEP In addition, Mr Tusk was critivide. But not everyone was won Council. He doesn’t seem to Barry Madlener, adding that cized by some Polish MEPs, COURTESY OF KPRM

The inauguration of the Polish presidency of the EU Council got off to a rocky start in the European Parliament

including former justice minister Zbigniew Ziobro, a member of the opposition Law and Justice party (PiS). “You spoke beautifully of the values of the Polish presidency but I would like you to defend values like freedom of speech and freedom of the media in practice, not only in theory. It is your government which moved to liquidate the daily Rzeczpospolita because it was critical of the government,” Mr Ziobro said in reference to the sale of a majority stake in Presspublica, Rzeczpospolita’s holding company (see article, p. 5). Mr Ziobro was also critical of a recent incident in which Internal Security Agency (ABW) officers, armed with live weapons, entered student Robert Frycz’s flat and confiscated his laptop and hard disks because a website he ran was thought to contain “materials that insult the president of Poland, and which may incite people to commit a crime.” Under Polish law insulting the president is punishable by up to three years in prison. Remi Adekoya

Broadcasting

Agriculture

ITI could sell $1.3 billion controlling stake in TVN

Polish vegetables still banned in Russia

Time Warner is viewed as one of the likely bidders, but ITI is keeping tight-lipped on the matter

ITI is reportedly looking to sell its stake in TVN good business sense for ITI to sell TVN. “It is not a surprise with the current restructuring and streamlining of the company, and with issues regarding competition in the Central and Eastern European market it is a really a good time to sell,” he said. “I’m sure there will be lots of potential buyers.” Time Warner is viewed by some analysts as the most likely bidder, as it increased its stake in TVN’s regional rival Central European Media Enterprises (CME) to 31 percent in March. Polish media company Agora may also be one potential suitor, according to Mr Górski. TVN recently dethroned public broadcaster TVP as the largest television programming provider in Poland in terms of revenues, but ana-

lysts have speculated that ITI’s willingness to sell may be related to the group’s debt burden. In the fourth-quarter of 2010 TVN’s net profit dropped by 93 percent yearon-year to stand at z∏.15.8 million. The broadcaster made a net profit of z∏.43 million for the full year, compared to z∏.346 million the year before, partially because it was weighed down by loan costs. The TVN Group, to which TVN belongs, also holds assets such as internet portal Onet.pl. The group launched its first television network in 1997. The most popular shows aired on some of its stations include Polish versions of “X Factor” and “Dancing with the Stars.” David Ingham

Despite reopening its market to some European vegetable imports after the recent E. coli outbreak, Russia has maintained its ban on Polish vegetables. The head of Russia’s state consumer protection watchdog, Gennady Onishchenko, said that Poland had provided incorrect data regarding its vegetables, and until a full explanation is provided, they would continue to be banned from the Russian market.

Mr Onishchenko also added that he does not trust Poland, which he claims has a “poor credit history” and has been involved in re-export schemes on “many occasions,” according to Russian news agency RIA Novosti. Polish Minister of Agriculture Marek Sawicki said he believes Poland has fulfilled all the necessary obligations and that he sees “no basis” for maintaining the ban against Poland. He added during a radio interview that he believed Russia was using the ban as a tool in its accession negotiations to the World

COURTESY OF WIKIMEDIA COMMONS

SHUTTERSTOCK

Polish media and entertainment group ITI is looking for potential buyers for its 56 percent stake in popular Polish broadcaster TVN, Reuters reported. The stake is valued at $1.3 billion according to TVN’s share price at the time WBJ went to press. Investment banking giants J.P. Morgan and Nomura are helping ITI to “review strategic options regarding its controlling stake in TVN,” the group said in a statement. The announcement led TVN’s share price to jump 7.3 percent, although ITI itself wrote that “no decision has yet been taken with regard to any potential sale.” Citing unnamed sources, however, Reuters wrote that ITI has approached five possible buyers, including Time Warner, Bertelsmann and Fox Broadcasting Company, the latter of which is part of Rupert Murdoch’s under-fire News Corp. Neither ITI or TVN have confirmed the names of any potential buyers. Dariusz Górski, an analyst at BZ WBK, said it would make

The government believes the ban is politically motivated

Russia’s embargo has cost Polish exporters more than z∏.25 million

Trade Organization. Deputy Minister of Agriculture Jaros∏aw Wojtowicz was sent to Moscow to discuss the matter. The European Commission has thrown its support behind Poland. Paola Testori Coggi, head of the EC’s Directorate-General for Health and Consumers, said that the ban was unjustified, and that the EC was putting pressure on the authorities in Moscow to lift it. On June 2, in the wake of the European E. coli outbreak, Russia banned all vegetable imports from European countries. The country committed itself to resuming vegetable imports from the EU in midJune on the proviso that they were accompanied by a guarantee of safety. The Netherlands and Belgium were the first countries to see the ban lifted at the end of June. They were followed by Denmark and Spain on July 1. On June 22 Minister Sawicki said that Russia’s embargo had already cost Polish exporters z∏.25 million. Russian vegetable imports from Poland totaled z∏.75.8 million last year. Tara Taylor

NEWS

www.wbj.pl

JULY 11-24, 2011

Smolensk tragedy

“The Polish pilots were knowingly led to their death,” says the opposition’s report A white paper on last April’s Smolensk tragedy, put together by the opposition Law and Justice (PiS) party, states that Russia bears most of the responsibility for the air crash that killed then-President Lech Kaczyƒski along with 95 others. The findings were presented at a press conference in Warsaw by former Prime Minister Jaros∏aw Kaczyƒski and the head of the PiS investigation into the tragedy, Antoni Macierewicz. The white paper’s conclusions contradict a report by the Russian Interstate Aviation Committee (MAK), released in January, which placed the blame for the crash squarely on the Polish side. The MAK report said pilot error was the main reason that the Tupolev Tu-154M clipped trees on its descent into Smolensk North Airport, causing it to slam into the forest, killing everyone on board. Citing PiS’s report, Mr Macierewicz told journalists, “Given the [foggy] weather con-

ditions, the Russians should have closed the airport. The Polish pilots were knowingly led to their death.” He said that Russian air traffic controllers had begged their superiors to allow the Polish plane to land at an alternative, safer airport. “But their HQ refused and ordered them to land the plane,” Mr Macierewicz said. PiS’s report also states that Russian authorities had broken protocol by not giving a weather forecast to the Polish pilots prior to the flight. The report adds that authorities failed to notify emergency services immediately after the incident: the first ambulances did not arrive until 17 minutes after the plane hit the ground, the report says. Moreover, the report alleges that autopsies were performed on victims without the consent or presence of representatives from the Polish side. “The key conclusion is that the main burden of guilt for what happened lies with the Russians, though some share of the guilt, related to the procedures after the crash, also lies on the Polish side,” Mr Kaczyƒski said.

REPORTER

PiS blames Russia, government for Smolensk disaster

Jaros∏aw Kaczyƒski says Russia is at fault Polish Defense Minister Bogdan Klich also came in for criticism for his alleged failure to buy new, more modern aircraft for the state, despite President Lech Kaczyƒski’s request that he do so. Jaros∏aw Kaczyƒski, however, reiterated his belief that despite mistakes made by Mr Tusk’s government, if it had not been for mistakes on the Russian side, the disaster would never have occurred.

With Poland holding the EU presidency until the end of December, and with political campaigns already underway ahead of this fall’s elections, debate over the circumstances of last year’s tragedy continues to loom large over the country’s main political parties. This will likely become a key campaign issue for PiS as they look to overcome Civic Platform (PO) as the Sejm’s majorDavid Ingham ity party.

Belarusian court convicts journalist Journalist and human rights activist Andrzej Poczobut was handed a suspended three-year sentence by a Belarusian court in early July for libeling and insulting authoritarian Belarusian President Alexander Lukashenko. Mr Poczobut, who writes for Polish daily Gazeta Wyborcza and is one of the leaders of the Union of Poles in Belarus, was originally arrested and detained on April 6, after Belarusian officials took issue with articles he wrote about Mr Lukashenko. These articles were published in Wyborcza and then linked on opposition web portal the Belarus Partisan and on Mr Poczobut’s personal blog. Speaking to radio station TOK FM just after he received his sentence, which included a two-year probationary period, Mr Poczobut was in defiant mood. “The authorities’ main aim was to get me to renounce what I believe in. But I do not trade with the values in which I believe,” he said. Mr Poczobut now plans to appeal the decision and has said he will not stop his critical coverage of Mr Lukashenko’s regime. Poland’s Ministry of Foreign Affairs has come out strongly

against the court’s decision. Ministry spokesperson Marcin Bosacki said in a statement that although it was a good thing Mr Poczobut would be able to return home to his family after his recent period of arrest, the sentence was unjust and the trial unfair. “No return to a normal dialogue will be possible between Belarus and Poland and the European Union unless Belarusian authorities release and rehabilitate all political prisoners and stop repressions,” Mr Bosacki added. The verdict against Mr Poczobut came at a time when Belarusian courts were issuing sentences to the more than 300 pro-democracy activists who were arrested by Belarusian police following protests held during the country’s Independence Day celebrations on July 3. President Lukashenko had earlier warned that he would not tolerate any form of protest. “I’ve never witnessed anything like this in all the demonstrations I’ve covered,” reporter Halina Abakunchyk was quoted as saying on Radio Free Europe/Radio Liberty’s website. Tara Taylor, Alice Trudelle

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INDUSTRY NEWS

JULY 11-24, 2011

www.wbj.pl

Telecoms

Solorz wins Polkomtel bid, secures huge loan The tycoon has nabbed Poland’s number-two mobile operator in the biggest buyout in Polish history

Polish telecommunications firm Polkomtel. The z∏.18 billion deal is the biggest in Polish takeover history. The leveraged loan deal is reportedly the largest in Europe in two years. The money will be paid out in a number of different tranches, each with their own pay-back periods. Credit Agricole CIB, Deu-

Polish business mogul Zygmunt Solorz-˚ak has secured a €3.6 billion leveraged loan that he will use in the purchase of

Private equity firm Apax and Norway’s Telenor were also in the running, but Mr Solorz-˚ak lodged the highest bid in late June. Polkomtel, the owner of the Plus brand, has nearly 14 million telephone and internet users. Mr Solorz-˚ak is expected to use the newly acquired company to expand his current cellular and television holdings, and to create a super-fast 4G LTE network across Poland. The Polish treasury has not

tsche Bank, Royal Bank of Scotland, Societe Generale and PKO Bank Polski are the underwriters. Polkomtel was sold by Vodafone and a number of Polish state-linked companies, including metals miner KGHM, oil refiner Orlen and coal exporter Weglokoks. The deal is subject to approval from regulators.

yet said how much it expects to earn from the sale. State companies, including KGHM, Orlen and PGE, are set to receive over z∏.10 billion for their stakes, in addition to a dividend of z∏.724 million from Polkomtel. As things stand, the treasury will receive almost z∏.1.53 billion in taxes, although its earnings would rise significantly if it receives special dividend payouts from the firms. Gareth Price, David Ingham

REPORTER

PGNiG investigated for possible abuse of market position Mr Solorz-˚ak’s z∏.18 billion deal is the biggest in Polish takeover history

Press

Gremi Media purchases Presspublica majority stake

Poland’s Gremi Media has bought London-based Mecom Poland Holdings, which owns 51 percent of Presspublica, publisher of titles including Rzeczpospolita, ˚ycie Warszawy and Parkiet. The z∏.80 million transaction now has to be approved by the Office of Competition and Consumer Protection before it can be finalized. A decision is expected to be made by September this year. In an official statement Gremi Media said, “Rzeczpospolita is not only one of the leading daily newspapers in Poland. It is, first of all, an influential paper which the majority of executives, managers and politicians start their day with.” The paper has a circulation of about 140,000. The founder and owner of Gremi Media, Krakow-born entrepreneur Grzegorz Hajdarowicz, said the transaction is a part of his company’s overall development strategy. “Based on the titles we own we will develop the group towards the most modern media concern in Poland, using advanced technologies,” he said. This is not the first such

WIKIMEDIA COMMONS

Control over the publisher of influential daily Rzeczpospolita has been sold for z∏.80 million

Rzeczpospolita has a circulation of around 140,000 transaction that Mr Hajdarowicz has been involved in. In October 2001 he bought weekly Przekrój and monthly Sukces. In 2010 Presspublica reported a net profit of z∏.8.1 million on revenues of z∏.220.9 million, Rzeczpospolita reported. Mecom Poland Holdings is a subsidiary of Mecom Group, a European content and consumer business, which owns over 300 printed titles and 200 internet sites. The parent company has substantial operations in Denmark, the Netherlands, Norway and Poland. In a statement the company said, “Mecom has taken the opportunity of an unsolicited proposal for its holding in Presspublica to sell this operation for cash on terms which it

views as attractive, having regard to the trading outlook of Presspublica and a lack of alignment with Presspublica’s minority shareholder which Mecom believes may act as a constraint on the future development of the business.” The minority shareholder is the Polish State Treasury, which owns 49 percent. Mr Hajdarowicz has said he will look to buy that share from the government. He hopes to repackage his media group, eventually floating it on the Warsaw Stock Exchange. Despite being 49 percent owned by the Treasury, Rzeczpospolita’s editorial page takes a right-wing line that is often at odds with the government. Barbara G´dek

Poland’s competition regulator announced that it has launched an investigation into whether gas monopolist PGNiG has abused its position on the Polish market. Citing a recent analysis it did of the company, Poland’s Office of Competition and Consumer Protection (UOKiK) said on July 5 that PGNiG was making it difficult for its

biggest customers to cancel supply contracts. UOKiK said that PGNiG had stipulated in a number of different supply contracts that it should be given up to 15 months’ notice if a customer wished to terminate the contract. This clause, the watchdog has decided, means that in effect the client cannot break BG the contract.

Russian competition for Google? Russia’s Yandex, an internet technologies firm, is looking to join the online advertising market by launching a new search engine in Poland, Puls Biznesu reported. The goal would be to establish a strong second-place position in the market. Google enjoys a near monopoly when it comes to handling Polish web searches, taking an estimated 97% of all queries. Google reports annual earnings of z∏.700 million in Poland.

Vodka exports to increase The Polish Spirits Industry organization (ZP PPS) believes the total value of vodka exported this year will exceed €130 million. That’s 10% higher than in 2010. Exports of liqueurs and flavored vodkas will continue to grow at the fastest pace, although pure vodkas will still have the largest share of total foreign sales. ●

INTERVIEW

www.wbj.pl

JULY 11-24, 2011

Politics

Leszek Miller: a view from the left Former Prime Minister and leader of the Democratic Left Alliance (SLD), Leszek Miller, talks to WBJ about Europe, Polish politics and his views on the War on Terror Ewa Boniecka: How do you assess the report drawn-up by the parliamentary commission, led by Ryszard Kalisz, on the circumstances of SLD politician Barbara Blida’s death, and the view that former Prime Minister Jaros∏aw Kaczyƒski and former Justice Minister Zbignew Ziobro should go before the Constitutional Tribunal for their alleged misuse of political power in the lead-up to the tragedy? Leszek Miller: If the report presents evidence of a violation of the Constitution by these politicians, then efforts should be taken to execute the report’s conclusions. But the parliamentary commission has to finish its work and, apart from the Kalisz report, there are other reports by members of the commission that may present conflicting conclusions. Only after obtaining the support of 115 members of

parliament can Kalisz’s report be turned in to the Commission of Constitutional Responsibility, which would make the final decision on whether there are conditions for placing Jaros∏aw Kaczynski and Zbigniew Ziobro before the tribunal. So far, only SLD has backed the report. It is, however, a very troublesome matter for the ruling Civic Platform (PO) party, which has to present its stance on the issue. As past events have shown, Prime Minister Donald Tusk and PO do not like to present definite stands on any issue. Allegations about so-called CIA “black sites” in Poland are not going away: a number of media sources have reported that these prisons existed when Aleksander KwaÊniewski was president and you were prime minister. Some of these sources also allege that torture was perpetrated at these sites. How do you view this situation? I cannot give you an answer to this question, since I am obliged to respect confidentiality on issues relating to Poland’s national security. What I can tell you is that there is, and has been, cooperation between Polish and

Leszek Miller • Began his political journey as an activist in the Socialist Youth Union. Later joined the Polish United Workers Party (PZPR) and studied political science at the Party's Higher School of Social Sciences, graduating in 1977 • Took part in the Polish Round Table talks in 1989 • Became minister in charge of the Office of the Council of Ministers and the Minister of Internal Affairs and Administration in Prime Minister W∏odzimierz Cimoszewicz's government • Was elected chairman of the Democratic Left Alliance (SLD) in December 1999, at the party's founding conference • Became prime minister on October 19, 2001 • Was one of the signatories of the Treaty of Accession on April 16, 2003, which brought Poland into the European Union. Helped organize a successful referendum on the issue • Resigned as prime minister on May 2, 2004, following an unpopular period in office that was marked by high unemployment and corruption scandals. Earlier that year he had stepped down as leader of SLD • In 2005, was not registered on SLD's parliamentary elections list and declined an offer to run for a seat in the Senate. Became active in journalism

American intelligence services, and that this has certainly been the case all the more since the attacks on the World Trade Center in 2001. However, if CIA officers were transporting people suspected of terrorist attacks through Poland, they were not under the control of the Polish authorities, so any burden

organization, do you feel that there is a lack of consideration in Poland about Europe and the future of the European Union? Yes, in my opinion, in Poland we lack a broader consideration about the future of Europe and relations between the European Union and other countries in a changing

“As past events have shown, Prime Minister Donald Tusk and PO do not like to present definite stands on any issue”

regarding this issue lies with the American authorities and not with Poland. I would add that during US President Obama’s recent visit to Poland, the Polish journalists who are now so eagerly investigating this matter did not question the American president on this issue. It was an excellent opportunity, so why didn’t they ask him any questions about it? Do you think the investigation into the alleged CIA sites will remain confidential despite the fact that it is being headed by the Polish prosecutor’s office? I expect the investigation to remain confidential. In addition, I cannot hide my view that the whole matter can be seen from two perspectives: from that of the person who, on September 11, 2001 was standing on the 40th floor of the World Trade Center, and had the choice to either stay and be engulfed by the flames or to jump to his or her death, or from the perspective of someone who observed the situation from afar with curiosity, yet with an ambivalent attitude. Personally, I am on the side of the person who only had two equally tragic choices. This is why I believe that one should feel indignant towards terrorism and not the War on Terror. As a member of the European Institute, a public policy

and globalized world. I am convinced that the problems of European integration demand more substantial attention and probing on a political and public level than we currently have. I hope this might change slightly with our presidency of the EU Council. However, the presidency is usually concentrated on more immediate problems. Thus, I will not alter my view that European issues require a deeper discussion and also some new ideas and approaches on our part, if Poland wants to have influence on the future development of the EU. I hope that we can inspire a deeper analysis of various aspects and consequences of EU integration. I would like to provide SLD with such an analysis, which is why we at the institute are preparing studies dealing with all aspects of integration – economic, political and social, as well as in the field of ethics – and we are paying a lot of attention to the position of European social democratic parties with regard to this process. In Europe, most parties on the left are in a weak position, while rightist parties are in power in the majority of countries. What influence do you believe the left can still have on European policy? It is a fact that the European left is now on the defensive, and I see it as a paradox because the financial and

economic crisis, which has brought hardship to so many people, should have increased the number of voters for the left, yet this has not been the case. In my opinion there are two main reasons for this. Firstly, the most fundamental issue is that the European left has departed from the manifestos of former British Prime Minister Tony Blair and Chancellor of Germany Gerhard Schroder, which set out a socalled “third way” for democratic leftist parties. Treated as the alternative to the conservatisms and populism of the right and the orthodox socialism of the radical left, the center-left’s agenda, which stressed a progressive strategy for growth and a free-market economy, brought major success for European parties on the left. Ten years ago they were in government in 12 of the 15 EU member states, and it is no coincidence that the biggest enlargement of the European Union, which included Poland, occurred at a time when center-left parties were in power across most of Europe. A second reason for the present defensive position of the European left is its ambivalent stance on some newly emerging social and political issues, such as the growing flow of immigrants from extra-European countries to the EU. While governments on the conservative right react chaotically to this situation, opting for severe measures to stop the flow of immigrants, the left takes an

uncritical position towards the problems relating to immigration which are now causing so much concern in European countries. European leftist parties often seem hesitant to express their views on certain problems, thereby limiting their possibilities of influencing European policy. However, I expect to see center-left parties helping to revive European energy, solidarity and enthusiasm, and helping to strengthen values such as tolerance towards all minorities. I also expect to see them pushing for the next enlargement of the EU. There is a large space where the left can exercise its influence on the EU’s policy and I believe that such influence will become more visible in the future. Do you agree that in their approach to the most pressing current European problem – the financial crisis – there is no differences between parties on the right and the left? In the economic domain, the differences between parties on the right and the left are indeed disappearing because there is no such thing as rightist and leftist economics. The time of long-lasting rivalry between the free-market economy and the economy of central planning, between socialism and capitalism, has ended, because the free market has won. So now the European economy is only one free-market economy. Therefore, while the parties on the right and left could propose somewhat different economic policies in regard to

Barbara Blida case Former Democratic Left Alliance Construction Minister Barbara Blida allegedly shot herself on April 25, 2007, when internal security forces entered her house to arrest her on corruption charges. Law and Justice’s Jaros∏aw Kaczyƒski was prime minister at the time of the incident. A parliamentary commission headed by Democratic Left Alliance (SLD) MP Ryszard Kalisz recently drew up a preliminary report which says that Mr Kaczyƒski and the thenjustice minister, Zbigniew Ziobro, had acted unconstitutionally prior to Ms Blida's death. The document alleges that the pair misused their power when investigating crimes against corruption, and pursued a policy of “eliminating” groups they believed were corrupt. “Barbara Blida would be alive if the PiS state had not existed ... We were governed by people who believed that a [corrupt] ‘clique’ existed,” the report reads. ●

INTERVIEW

JULY 11-24, 2011

Looking at the European policies of the ruling Civic Platform party and SLD, there does not seem to be much difference as both parties are strongly pro-European. How do you see the situation? SLD is more decisive than PO in its European policy and there are differences in the two parties’ positions in certain areas. It amazes me that in the lead up to Poland’s presidency of the EU Council, Prime Minister Donald Tusk has not said a word about three major issues. Firstly, he has not mentioned that Poland would withdraw from the so-called “British protocol,” which we agreed to during the government of PiS, in order not to ratify the Charter of Fundamental Rights of the European Union. SLD always demanded Poland’s ratification of that important document, and it should be done. Secondly, Poland has not expressed a desire to adopt the article which obliges all members to observe the European Union’s symbols – the flag and the hymn – and I have to question our reasons for not formally adopting the signs of EU unity. Finally, the government has not presented a reliable roadmap for Poland’s accession to the euro zone. Prime Minister Tusk once talked about Poland entering it in 2011. It is currently 2011 and nothing is being said about our timing and preparations with regard to the euro zone. But Prime Minister Tusk recently led Poland into the Euro-Plus Pact, a plan under which countries make commitments to improve their respective fiscal situations. Do you not think this highlights his determination to see Poland meet euro-adoption criteria and generally bring the country closer to the sin-

gle currency? That was an empty PR gesture. Poland is the only observer in that group without any voice. I regard Poland’s acceptance of a common EU currency as a strategic task, yet during nearly four years in power, the government did nothing to prepare our finances and economy to meet the criteria for joining the euro, which would allow us to have real influence on the economic integration of the EU. How do you assess Poland’s Eastern policy and the country’s role in shaping it within the EU? The Eastern Partnership, which Poland and Sweden initiated, is a good project and should be realized, but to play a significant role in shaping the Eastern policy of the EU we first need to have a strong economic position. To play the leadership role in our part of Europe is not enough – we have to make our economy the leader in Central and Eastern Europe. It is not an accident that Germany plays such a strong role in the Eastern policy of the EU; its economy is the strongest in the bloc. How do you view the Polish government’s policy towards Russia? I think that it has evolved positively under the current government, and there is a clear difference between the current policy and that of former President Lech Kaczyƒski and his PiS government. The latter was based on the principle of cordoning off Russia. This policy was not good for Poland nor for the EU. We should conduct a policy which will bring Russia closer to Europe and not push it away. Global security systems have to be built together with Russia, not without it. During his visit to Poland, President Obama made this view clear and it was a wake-up call for those hotheads in Poland who think the situation should be different – namely that Poland should mobilize NATO and the European Union against Russia. The leader of the strongest power in the world, the US, put his cards on the table

REPORTER

the conditions of the free market, the basic rivalry between the two is moving towards ethical and cultural matters: relations between church and state, and relations between citizens and the state. Here, those differences are substantial and they should be highlighted.

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Leszek Miller thinks there is little difference between rightist and leftist economics: “the free market has won,” he said

“To play the leadership role in our part of Europe is not enough – we have to make our economy the leader in Central and Eastern Europe” about the need for close cooperation with Russia. This should now be taken into serious consideration by Polish politicians. I have the impression that some leaders on the Polish left, while advocating the improvement of Polish-Russian relations, are afraid to be labeled as being pro-Russian. What is your opinion? SLD is neither pro-Russian, nor does it have any anti-Russian phobias.We are looking here at the interests of Poland and Europe and it is clear that drawing Russia closer to European structures is a rational policy. Do you think that after the parliamentary elections this fall, the conditions could be

right for the creation of a coalition between SLD and PO? It all depends on the voters’ verdict. If the coalition between PO and the Polish People’s Party (PSL) still carries a sufficient majority in parliament, a third partner would not be needed and SLD would remain in opposition. SLD could enter the government structures only if PO and PSL do not have a suitable majority to govern with. From my point of view, including SLD in a governing coalition would be very favorable for Poland because it would strengthen Polish modernization tendencies and our European policy. It would be a coalition of reason against PiS leader Jaros∏aw Kaczyƒski’s policy of folly. Mr.

Kaczyƒski does not respect the democratic institutions of our country and is in opposition not only towards Donald Tusk, but also the Polish state. Finally, there is a lot of speculation over whether you will appear on SLD’s election list. Can you confirm whether or not you plan to take part in the upcoming parliamentary elections? At this time I have not received any official proposal to take part in the next election. I have only read speculation in various newspapers about possible places where I could run; one time it was Gdynia, the next Siedlce, and then later some other place. I cannot answer your question because I do not know

whether I will be a candidate for the Sejm. Would you like to be in parliament after the next election? From my point of view, I could be in the Sejm and I could not be; it is not a must for me. For a long time it seemed to me that there was no life outside parliament, but now I know that there is because for six years I have been out of parliament and have led a very active life. However, if a suitable opportunity were to present itself and I were to receive an interesting proposal to run for parliament on SLD’s list, then I would accept it because I would want to use my knowledge and experience for the benefit of my party and also, I think, for the benefit of the Sejm. ●

COVER STORY

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WSE IPOs worth z∏.11 billion?

Remi Adekoya, Ella Palka

Social media and business

Cashing in on the social media phenomenon

The value of all initial public offerings on the Warsaw Stock Exchange may exceed z∏.11 billion in 2011. That is what a summary of H1 activity and an analysis of declarations made by companies that are planning to enter the WSE in H2 indicates, reports Parkiet. Among the largest potential IPOs in H2 this year are that of vodka producer Stock Spirits, estimated at z∏.1.4 billion, and of energy company PGE Energia Odnawialna (z∏.1 billion).

“Using social media is a normal part of advertising today, as obvious as being in the yellow pages 10 years ago” Attention, a New York-based social media marketing firm.

New order

Bank Pocztowy submits issue prospectus Poland’s Bank Pocztowy, a unit of bank PKO BP and national postal carrier Poczta Polska, is moving forward with its plan to debut on the WSE. The company filed its prospectus in early July. The bank had earlier announced it was looking to hold its IPO in the second half of 2011, and hoped to make z∏.250-350 million from the accompanying share issue.

Tauron, PGNiG await EBRD loan decision As WBJ went to press, Poland’s second-largest utility Tauron and gas giant PGNiG were waiting on the European Bank for Reconstruction and Development to reach a final decision on a z∏.700 million loan. The money would be devoted to building a new joint gasand biomass-fired power unit. ●

SHUTTERSTOCK

Ukrainian ViOil to enter WSE Ukraine’s ViOil, a sunflower oil and colza oil producer, aims to raise between z∏.390 million and z∏.507 million when it enters the Warsaw Stock Exchange before the end of July, reports Bloomberg. The company will issue up to 26 million new shares, with the firm confirming that the issue price, which will be announced on July 13, ranges from z∏.15 to z∏.19.50 per share.

JULY 11-24, 2011

Poland has around 22.5 million internet users, almost 60 percent of the population

Poles are among the most active social network users in Europe. Are Polish businesses in a position to make the most of the phenomenon? Polish internet users are the seventh-most active users of social media in Europe, with 63 percent of them now logged on to networks like Facebook, YouTube and Twitter, according to a Eurobarometer report published in June this year. This number is expected to rise, making social media an attractive ready-made platform from which companies can reach out to potential customers and advertise their products. Firms that interact with their customers through social media can provide added value to their clients by keeping them abreast of news and events, new products and services, and with special offers. In return, consumers can then comment, link or tweet about

Super searchers Top 10 European countries by searches per searcher, August 2010 (total Europe, age 15+, home and work locations) 1. Poland 2. UK 3. Finland 4. Turkey 5. Ireland 6. Belgium 7. France 8. Portugal 9. Italy 10. Sweden

156.8 143.8 140.8 138.3 129.9 129.9 129.4 118.0 114.8 112.3 Source: comScore

their experiences with the firm, giving companies the brand exposure they are looking for.

A growing market According to statistics website Internet World Stats, there were some 22.5 million internet users in Poland as of March 31 this year. That’s 58.4 percent of the country’s population. With broadband access being expanded and smartphones gaining in popularity, internet use in Poland is set to increase and interest in social media will likely follow suit. Pyramid Research, moreover, recently predicted that smartphones will account for 35 percent of total handset sell-

For example, bar-code scanner apps allow consumers to scan products to find out information such as cost. In Poland, mobile operator Orange is launching technology that will allow its Polish clients to utilize Near Field Communications (NFC) technology to pay for purchases directly using their smartphones. Smartphones have fueled the rise of location-based social networks, such as Foursquare and Gowalla, through which users share their location with friends. The services have taken off in countries like the UK and the US, and are expected to catch on in Poland relatively quickly. These services allow businesses to offer users special deals as soon as they walk through the door.

So how aware are Polish firms of the power of social media? “It is already the norm in Poland that firms want to be present on Facebook and other social media to show that they are modern and active. It is a normal part of advertising today, as obvious as being in the yellow pages 10 years ago,” said Izabella Anuszewska, an internet market expert at advertising research agency Millward Brown SMG/KRC. “Most firms just use these media to keep their clients informed of the latest happenings concerning their company and their products, but some are more inventive and hold contests or online surveys where you can win something – [firms do] anything just to involve the client,” she added. Recent data suggest Polish firms are becoming increasingly aware of the commercial potential of social media. In 2010, PR and marketing experts representing 71 Polish companies from various industries took part in a survey called the “Social Media Brand Index.” Eighty-six percent of those polled said they used Facebook as a promotional tool; 60 percent said that thanks to social media they had strengthened dia-

logue with their customers, and 67 percent said that social media had helped them build greater brand loyalty among their customers. “An increasing number of marketers see real benefits in using social media: an increase in brand awareness, in brand loyalty and increased traffic on their website. I think the survey conducted in 2011 will show further growth of the trend in this direction,” said Piotr Krawiec, head of Praktycy.com, a public relations and marketing company.

Top sites When it comes to social networking sites in Poland, NK (formerly Nasza-Klasa) still tops the rankings, with nearly 14 million monthly active users, while Facebook has around 9.9 million, according to the latest available data. Though ostensibly used to reconnect old classmates, NK works in much the same way as Facebook, allowing its members to join groups, reconnect and leave messages for friends, as well as share links and post photos. In Poland, in addition to NK and Facebook, the most popular websites include Onet.pl, which has 12.1 million active monthly users, and Wp.pl (10.9 million). Google, however, still leads the pack among services websites; it was visited by 15.9 mil-

Google vs. Facebook

“An increasing number of marketers see real benefits in using social media: an increase in brand awareness, in brand loyalty and increased traffic on their website” through in Poland for full-year 2011. Smartphones make social networking easier by providing users with internet access wherever they are. Applications (or apps) – the hallmark of smartphones – can also be used to engage in e-commerce.

“Basically, you could walk into a Gap shop in Poland, register your presence there by checking in and then you can get a reply offering you a discount or giving you advice on what kind of shirt or blazer would go with the black jeans you intend to purchase,” said Curtis Hougland, founder of

With over 500 million users worldwide, Facebook is still the largest social media network in the world. Its staying power and ability to compete will, however, be tested by Google’s new social networking site, Google+, which was recently unveiled to select users. After its trial period has been completed, the Google+ platform will automatically activate for all users who hold an active Gmail account. Google has the potential to integrate all of its services under one umbrella, which would in turn create serious

competition for Facebook. However, as The New York Times recently reported, there is a different level of engagement between the two online organizations. “In May, 180 million people visited Google sites, including YouTube, compared with 157.2 million on Facebook, according to comScore. But Facebook users looked at [a combined] 103 billion pages and spent an average of 375 minutes on the site, while Google users viewed 46.3 billion pages and spent 231 minutes,” the newspaper reported. ●

COVER STORY

JULY 11-24, 2011

lion people in January 2011. Statistics from comScore reveal a strong reliance on the web as a source of information in Poland. The country ranked highest in Europe, with 157 searches per searcher in August 2010, followed by the UK (144) and Finland (141). This level of web browsing makes for good business: around 10 percent of Poles shop online, compared to a 7 percent average across the EU, New Media Trend Watch said.

Future trends In the coming years, however, it will not be enough for firms to merely be present on social media networks. Even the acts of publicizing company communiques and announcing upcoming events and promotions won’t be sufficient to allow a company to stay ahead of the competition, experts warn. Companies will need to do much more if they really want to maintain the interest and loyalty of their customers. They will need to work on innovative ways to engage potential clients, to give them a sense that they are being treated individually. Some firms are already doing this by organizing online quizzes, lotteries and surveys. Attention’s Mr Hougland says Polish firms will have to create more compelling content in the future in order to win clients. “I also expect more transparency and authenticity will surface in Poland. Right now, a lot of firms are just paying bloggers and paying for exposure in social media. That used to be the case in the US, but recently there has been a trend towards more authenticity and less brazen paid-for marketing. This will also happen in Poland,” he said. Another trend Mr Hougland foresees is a shift towards more online video-based advertising. “Today, YouTube is the second-largest search engine in the world. There will be a move towards it and other such platforms where companies can post promotional videos and establish a more emotional connection with viewers and potential clients,” he said. All in all, it seems the expansion of social media in the business sphere will be far-reaching, fast-moving and fast-changing. “We can expect that the use of social media as a business tool will increase for as long as those media continue to enjoy the interest of internet users. But there will also be a professionalization of this sphere, and only firms that keep up with the latest innovations will be able to successfully use these networks to advance their business interests,” said Praktycy’s Mr Krawiec. ●

The blogosphere Blogs, of which there were over 156 million worldwide as of February this year, are a more personal form of social media, which businesses can use as an extension of their websites. They are easy to set up and offer a great platform for feedback, commentary and interaction. Bloggers can also post news, information and photos, much like Twitter users, but in greater depth. One advantage bloggers have is that they can easily post videos to bring greater exposure to

their blogs. Bloggers can also link out to others sites and blogs, thereby encouraging the type of information sharing that has become the hallmark of social media. Polish politicians are also warming to the idea of using blogs, with major figures like opposition leader Jaros∏aw Kaczyƒski active in the blogosphere. Deputy Prime Minister Waldemar Pawlak and presidential adviser Tomasz Na∏´cz also have their own blogs. ●

Popular sites Selected top sites in Poland, by monthly users

20 15 10 5 mln Google.pl

NK.pl

Onet.pl

Wp.pl

Facebook

Source: PBI Megapanel PBI/Gemius, PMR, New Media Trend Watch

The big players The major social media websites have each become household names within just a few years and each offer something different for users. Twitter, which had around 200 million users worldwide as of March 2011, allows its members to access and communicate with anyone on its network, including business leaders, politicians, artists, writers, bloggers and celebrities.

Users can tweet (send a message), retweet (re-send someone else’s message), share links, provide feedback and alert others of news and information, as well as comment about products and services. The greatest benefit provided by Twitter is that it allows users to reach others with just a few lines of text. Unlike Facebook, which focuses on friends and family, Twitter postings go in to the public domain. This potential for global reach is what makes it so attractive: the greater the number of followers, the greater the impact. There are many ways to attract followers to a Twitter account; businesses recognize this and, in addition

to having a Twitter account of their own, many try to actively engage other users, including bloggers, so that they write or tweet about their products. For career-oriented web users, LinkedIn allows members to post online profiles of their work experience, and to network with other professionals and employers. The site, which has around 100 million users, essentially works as an online CV forum where potential employers and members can vet each other’s profiles and cred e n tials. Alerts can be sent to users whenever there are new job opportunities or when a fellow professional wishes to make online contact. Approximately one half of LinkedIn users reside in the United States, although there is a growing community of users in India. Recently, the number of users in that country passed the three million mark. There are a relatively low 396,000 LinkedIn users in Poland, but most of those are plugged-in professionals. GoldenLine, Poland's home-grown professional social networking site, is also popular among the career-driven. ●

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OPINION & ANALYSIS

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JULY 11-24, 2011

Foreign policy focus

A security-oriented presidency Marcin Trelikowski

hen in July 1991 the Warsaw Pact was dissolved, a deep sense of relief was mixed with anxiety about the continent’s future. Few then could have imagined how Europe’s security environment would evolve. Now, as Poland takes on the presidency of the EU

“Security is expensive. The time has come for the EU to pay the bill” council, the “winds of change” have blown a former Soviet satellite to a position from which it will lead Western European nations. Although today’s Europe is safer and richer than at the beginning of the 1990s, it is also facing complex security threats. Cyber attacks, energy-supply disruptions, piracy, terrorism, illegal trafficking of nuclear, biological and chemical materials and organized crime – all originating often in dysfunctional states – may not threaten the very existence of

EU, but they have serious potential to cause instability, turmoil and economic hardship. These are not merely theoretical concepts, but imminent challenges.

Much to be done The “Arab Spring,” the crackdown on the opposition in Belarus and high tensions in the Caucasus all prove that there is much to be done in Europe’s neighborhood. The EU, so far predominately occupied with its internal issues, has failed to plan for contingencies or to be proactive towards perceived security challenges. The results are worrisome – the EU may soon need to tackle serious threats from sources using unstable and inefficient states as safe havens. At the same time, new global powers are emerging and already attempting to dominate novel domains of conflict – such as cyberspace. While they, and many other countries, increase defense spending, EU members continue to reduce their militaries’ financial resources. This trend is accompanied by a wave of mistrust and disappointment in

common European policies and actions, best epitomized by recent examples of sub-regional – rather than European – defense cooperation, and a row over the Libyan operation. The pacifist attitude of societies, perceiving military and security as uncomfortable topics, doesn’t help either. All these recent developments are a wake-up call for the EU. They leave it no option but to reconsider its philosophy of managing security-related problems in both external and internal relations. And it is the Polish EU presidency that offers a chance for such reconsideration.

Re-invigorating the CSDP Notwithstanding crucial economic issues, the future of the euro currency and budgetary negotiations, the prime task of the Polish presidency will be to streamline the EU’s answers to challenges facing its security. To these discussions Poland brings in its unique perspective, experience with transformation and also certain proposals. One of the Polish presidency’s aims is to re-invigorate the EU’s

Common Security and Defence Policy (CSDP). Established a decade ago to help the bloc stabilize post-conflict states, it lives up neither to EU ambitions nor to goals set forth in its strategic documents. Despite a record of over 20 operations, CSDP effectiveness is hampered by the conflicting security interests of EU members and a lack of willingness to move forward in European defense cooperation. Poland, together with its Weimar Triangle partners Germany and France, is calling on the EU to endow CSDP with a proper system of planning, preparing and commanding missions, to improve the Union’s partnership with NATO, and to update the concept of EU battle groups (a key military asset of the EU, albeit never used). Using a reinforced CSDP, the EU could react more swiftly and proactively to further crises which might occur in its vicinity. Since the CSDP is not only about military, but also civilian matters, it could also help in security sector reforms or building civic institutions in states undergoing transformation.

Pay the bill As the traditional boundaries between internal and external security dimensions, as well as between civilian and military instruments, become irrelevant, Poland should seek broader security context also in other policy areas. An update of the Schengen system and reform of the Frontex border security agency are issues of utmost importance. So is the European Neighborhood Policy, which should finally allow the EU to approach its neighbors with concrete tools aimed at stabilizing their political, social and economic systems. Undeniably North Africa needs particular assistance with democratization and transformation, but the eastern EU neighbors also mustn’t be forgotten. Security is an expensive public good and its price tends to rise in turbulent moments. Now, the time has come for the EU to finally pay the bill for assuring itself welfare and stability – not for today, but for the future. Marcin Terlikowski is a research fellow at the,Polish Institute of International Affairs (PISM). www.pism.pl

Analysis

Poland’s EU bid to draw Ukraine closer

Fostering integration Ukrainian Foreign Minister Kostyantyn Gryshchenko visited Poland on July 6 to meet with his Polish counterpart, Rados∏aw Sikorski, with one of the key topics being Poland’s EU presidency from July to December 2011. A week into its presidency, Poland had begun addressing the issue of bringing Ukraine closer to the European Union. Specifically, Poland wants to facilitate the signing of an association agreement and a free trade agreement between Kiev and Brussels before its EU presidency comes to an end. Poland has become one of the main drivers bringing former Soviet states in Eastern Europe closer to European institutions in response to Russia’s resurgence into the region, and one of the key points of focus for Poland’s EU presidency is fostering Ukraine’s integration with the European Union. Over the past couple of years, the European Union’s sixmonth rotating presidency has not had significant influence on the bloc’s decision making, especially since the adoption of the Lisbon Treaty, which created the European Council with a

permanent office of president, currently held by Herman Van Rompuy. However, Poland was already an active player in the European Union and the region, so the EU presidency could serve as a format for Poland to further its priorities.

like trucking and metals from their more competitive EU counterparts, at least initially. But both parties seem open to leaving some of the tougher questions aside until after the agreements are signed. Additionally, there are external players that A crucial The Ukrainian (left) and Polish presidents in Warsaw in February could serve as moment significant roadPoland’s EU presiUnderstanding the time con- blocks to the deals. After all, Poland dency comes at a key time, especially in terms of the Ukraine question. EU straints, Poland has already begun to is just one country in the 27-member and Ukrainian leaders have set make moves on the Ukraine issue. At European Union, and an association December 2011 – the final month of Poland’s request, the European Par- agreement needs approval from all Poland’s term in the rotating presi- liament announced on July 5 that it EU member states as well as the dency – as the unofficial deadline to had created a support group dedicat- European Commission. An even bigcomplete an association agreement ed to the European integration of ger potential obstacle is Russia, which and a free trade agreement. One of Ukraine, with Polish member of the is trying to strengthen ties with the main reasons for this self- European Parliament Pawe∏ Zalews- Ukraine through its own customs imposed deadline is related to elec- ki appointed as coordinator of the union. Moscow is not as concerned with tions. Poland will hold parliamentary group. The purpose of this group will elections in October 2011, and help- be to facilitate the preparations need- bringing Kiev into the customs union, ing to foster Ukraine’s EU integra- ed to form the association and free which lists Belarus and Kazakhstan as tion is a popular issue that Polish trade agreements between Ukraine members, as it is with dissuading Ukraine from getting closer to the Prime Minister Donald Tusk can use and the European Union. European Union. Russia has threatto gain support. ened to enact trade barriers against Ukraine will hold its own parlia- Roadblocks mentary elections in October 2012, There are still many obstacles that Poland’s eastern neighbor if it signed and due to the country’s routine could prevent these deals from mate- the EU free trade agreement and has political instability during election rializing. Several details on the EU promised benefits if it were to move season, the chances that the EU deals association and free trade agree- closer to the customs union. While will pass will be severely diminished ments need to be worked out, such as Kiev has publicly remained commitafter the end of 2011. protecting some Ukrainian industries ted to the EU free trade agreement COURTESY OF PREZYDENT.PL

key focus of Poland’s presidency will be bringing Ukraine closer to the European Union through the signing of association and free trade agreements. The outcome of Warsaw’s effort regarding Ukraine will have significant implications for Poland’s status as a regional leader as well as for the geo-political orientation of Kiev.

and has said membership in the customs union is off the table, Ukraine maintains a strategic economic and political relationship with Russia and does not take such statements from Moscow lightly.

The role of Germany Perhaps the most important country in the EU-Ukraine issue other than Poland will be Germany. Berlin is the political and economic leader of the European Union, but it also has a

“Poland’s reputation as a regional leader depends on the realization of this goal” strong relationship with Moscow. Germany has significant influence with both entities – though its role as an EU member is currently more entrenched than its relationship with Russia – and could serve as either a facilitator or spoiler to the issue. Therefore, Berlin’s commitment to the realization of the Ukrainian association and free trade agreements by the end of the year will be crucial. Poland understands this, and also that its reputation as a regional leader that can produce results depends on the realization of this goal. ● This edited version of “Poland’s EU bid to draw Ukraine closer” is reprinted with permission of STRATFOR

OPINION & ANALYSIS

JULY 11-24, 2011

www.wbj.pl

Editorial

Western Europe must act to end Europe’s last dictatorship

“Mr Lukashenko is weaker than he has ever been” deepening, piling hardship upon an already oppressed people. It is time now for the West – especially Western Europe – to act. The countries of Western Europe – which so often purport to be the standard bearers for freedom and human rights across the world – huff and puff about human rights abuses in Asia and Africa, but show far less concern at the gross violations occurring on their doorstep. Over just the past year, Mr

Lukashenko has rigged an election, smothered the protests that followed, jailed political prisoners and, at the beginning of July, violently cracked down on those who dared to show their dissent simply by collectively clapping their hands (see story, p. 4). Europe has responded with verbal condemnations and feeble sanctions.

more of a pariah the country becomes, the more it will be forced into Moscow’s geopolitical sphere. Indeed, Moscow has been pressing to bring Belarus closer economically, first by pushing it to join its customs union with Kazakhstan. Now, it is maneuvering to obtain some of Belarus’ most lucrative assets, requiring that Minsk commit to a total of $7.5 billion in sales of state-owned companies in exchange for the bailout. These assets will fall cheaply and effortlessly into Moscow’s lap, where it can use them later as political tools.

Closer to Moscow That’s a shame, because while Mr Lukashenko’s regime may seem to be tottering, the reality is that it will survive as long as it continues to receive support from Moscow. Belarus recently received an $800 million tranche of a $3 billion bailout from a Russian-led fund, and the Kremlin has turned a blind eye to the repression going on in Belarus, knowing that the

Time to do more The last two decades have seen countries such as Germany and France grow increasingly friendly with Russia, despite its poor record on human

SHUTTERSTOCK

elarusian President Alexander Lukashenko is, as has oft been said, Europe’s last dictator. His increasingly violent crackdowns on the opposition have made that abundantly clear. Belarusians have suffered enough: along with the government’s blatant disregard for human rights, the country’s economic crisis is

rights. But if they want to be rid of the dictator in their back yard, they must now take a much firmer line, making it clear that closer relations will depend on Russia withdrawing its support for the Lukashenko regime. Russia’s entry into the World Trade Organization would be a useful card for these countries, in partnership with the US, to play. But Western Europe could do more, such as backing more generous EU funding for the Belarusian opposition, and making it clear to the Belarusian people that a transition to democracy will open a path to EU membership. Too often such measures are scuttled for fear of irking the Kremlin. Mr Lukashenko is weaker than he has ever been, and his flailing attempts to hang on to power have led to ever more extreme measures against his own people. Economic disaster looms. Belarusians deserve better, and can have it, if rich Western European nations put their full weight behind freeing it from tyranny. They must overcome their fear of upsetting their relationship with Moscow, and act. ●

Opinion

Tusk leads Europe by putting the Union first Joanna Wóycicka

ow will Poland lead the European Union as it takes over the rotating presidency? To answer this question, we have to get inside the head of the man at the top: Prime Minister Donald Tusk. If we understand how he thinks, it will be easier to predict how the Polish presidency will proceed.

Gdaƒsk and Europe What Prime Minister Tusk calls his “homeland” has evolved over several years. Fifteen years ago he passionately stated that his homeland was Gdaƒsk. A few years later he added the region of Kashubia to Gdaƒsk and emphasized that he was a native of Gdaƒsk with Kashubian minority ethnicity. Soon he added Poland to the list. Since he became prime minister, he has managed to say in a single breath that his homeland is Gdaƒsk, Kashubia, Poland and Europe. Of course he never favored Gdaƒsk at the cost of Kashubia, nor acted in the interests of the Kashu-

bians to the detriment of Poland. In this we can glean a sense of how he sees his European homeland – he will unite, not divide; he will expand, not close it up, he will look for allies for it throughout the world, and not seek confrontation with other economic and political powers. Mr Tusk understands that the EU is strong only when it is united and has a common supranational interest. Otherwise it will fall into being an insignificant player in international politics, a politically and economically weak statelet.

Silence in Aachen On May 13, 2010, in Aachen, Germany, Donald Tusk received the Charlemagne Prize, which is awarded for distinguished service on behalf of European unification. As usual he spoke without notes. After his speech a profound silence fell over the hall. Mr Tusk, hitherto a provincial politician, had, without inhibition, lectured people experienced in the salons of

Western Europe, telling them how Europe should be if it intended to be strong and prosperous. They were frozen by surprise, or, perhaps, by outrage at his impudence. But after a few moments, they began to applaud. “We are convinced that the core of Europe is the capacity to overcome all turmoil and crisis. How much we talk about Greece these days. It is difficult not to discuss Greece today when speaking about Europe’s future. But is the euro zone’s turbulence Europe’s only Greek experience? At such a moment, is not the lesson drawn from the history of Herodotus a more important Greek experience? Is not Europe to a certain extent in the position of that Greece, that Ancient Greece, when great leaders, people endowed with will, imagination and energy were needed to say – possibly for the first time in history – that we are different, but we must be one?” the Prime Minister asked the audience in Aachen. “Europe’s time is still to come.

The capacity to overcome crises will be its best proof,” Mr Tusk concluded. Over the last few months he has repeated this refrain with ever-growing conviction.

Partnership – to second place. If Ukraine meets the criteria to enter the EU, then he will try to have Europe conclude an association agreement with it, even if it means

Ambitious vision Though he is aware of the EU’s current weaknesses, Mr Tusk has an ambitious vision for Europe – not in six months’ time or a year’s time, but in a decade’s time: It must be an economic area with the free flow of goods, people, services and capital; it must be bigger, ever wealthier and without a rival on the world stage. To achieve this, if necessary, he is prepared to sacrifice the priorities that the average Pole might find more important. To avoid a eurozone crisis he is ready to contribute Polish funds to a stabilization mechanism. If diplomatic activity in North Africa will constitute the most important part of European neighborhood policy, he will be ready to move the leading Polish project – the Eastern

“Mr Tusk has an ambitious vision for Europe” being attacked by his opponents for supporting the pro-Kremlin government in Kiev. And so, we have the answer to our question of how the Polish presidency will look: it will put the Union first. ● Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com

Where no author is listed, the opinions are those of Warsaw Business Journal. Readers’ comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

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JULY 11-24, 2011

Privatization

21 ECONOMIC FORUM

Krynica, Poland, September 7-9, 2011

“European Dilemmas - Partnership or Rivalry?”

The Economic Forum in Krynica has become an important spot on the political map of the world and probably the only one, where East meets West on such a large scale

» More than 120 plenary sessions and panel discussions, lectures from personalities of the public sphere, workshops and round table discussions; » 2 000 invitees from Europe, Asia, USA and Middle East countries

4th Investment Forum

Tarnów, September 6-7, 2011

Under the Honorary Patronage of Mr Aleksander Grad, Minister of the Treasury The 4th Investments Forum in Tarnów is a two-day conference organised within the scope of the 21st Economic Forum.

5 Forum of Regions th

JSW shares disappoint following successful debut While the miner’s IPO earned Poland z∏.5.37 billion, its stock has performed below expectations The Polish government floated 33.1 percent in coking coal miner Jastrz´bska Spó∏ka W´glowa (JSW) at the start of July in an initial public offering that earned it z∏.5.37 billion. The IPO is the largest seen on the Warsaw Stock Exchange so far in 2011. Analysts expected JSW’s share price to increase by as much as 10 percent after its debut. However, the first day of trading saw its stock rise to z∏.140.5, only 3.31 percent above the original price of z∏.136. The stock price even briefly fell below the original debut price. After its first three days on the bourse, JSW’s share price rose by 3.6 percent to z∏.141. WSE president Ludwik Sobolewski set an optimistic tone on the morning of the debut, saying it demonstrated the strength of Poland’s capital market. “JSW is the 26th debut on the main market this year. In Europe, IPOs are getting called off, but in Poland they

COURTESY OF THE WSE

JSW’s debut was this year’s biggest so far on the WSE can apparently be carried out,” he told reporters. Treasury Minister Aleksander Grad, meanwhile, argued that JSW’s debut provided strong evidence against many of the negative “myths” that surround Poland’s coal mining industry. “This debut puts to rest the myth that the state has to be the owner of coal companies in Poland until the end of days. It also opens the door for flotations of other state-owned coal miners in the future,” Reuters reported Mr Grad as saying. The IPO is the latest in Poland’s plan to finance its budget deficit by raising z∏.15 million from asset sales this

year. JSW expects its 2011 financial results to be comparable to last year’s, or slightly better, company CEO Jaros∏aw Zagórowski told reporters. “We hope that the [2010] result will be improved as there are higher [coking coal] prices and we are also maintaining production at an appropriate level,” he said. JSW is the fourth coal producer to be listed on the Warsaw bourse and the largest by market value, ahead of the Czech Republic’s New World Resources, Poland’s Lubelski W´giel Bogdanka (LWB) and Ukraine’s Sadovaya Group. Thomas Kolasa

Russian Valinor sets maximum IPO price at z∏.948 million Russian agro-group Valinor has set its maximum share price at z∏.39.5, valuing its upcoming IPO on the Warsaw Stock Exchange at up to z∏.948 million. The company is expected to float approximately 40 percent of its stock on the WSE, putting its maximum value at about z∏.1.7 billion. The official price is set to be announced in mid-July. The money Valinor gains will be used for land acquisi-

tions and investment in production. The firm currently controls some 358,000 hectares of land in the fertile “black earth” regions of Russia and Ukraine, mostly cultivating grains and oil seeds, with last year’s harvest totaling 1.2 million metric tons. The company also intends to invest in new machinery and storage areas, as well as the reconstruction and modernization of irrigation systems to allow the cultivation of pota-

toes and soybeans. A source quoted by the Moscow Times said Valinor’s net debt was more than $220 million, or higher than twice 2010 earnings before interest, tax, depreciation and amortization. The firm’s parent company, Valars Management Ltd, is selling the shares, while Deutsche Bank and Troika Dialog are carrying out the book-building. Thomas Kolasa

Krynica, Muszyna, September 7-9, 2011

PKO BP to pay z∏.2.48 billion in dividends Under the Honorary Patronage of Minister of Regional Development of the Republic of Poland Elżbieta Bieńkowska The most important meeting of the representatives of regional authorities from European countries with representatives of public administration and the European Union.

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contact: forum@isw.org.pl

Shareholders in Poland’s largest bank, PKO Bank Polski (PKO BP), have agreed to the Treasury Ministry’s proposal to increase the value of the dividend that will be paid out from the lender’s 2010 net profit. At a recent AGM, the state-owned bank finalized plans to pay out z∏.2.48 billion from its 2010 takings. The lender’s management board had originally planned

to pay out z∏.1.1 per share, but this will now rise to z∏.1.98. This means that 75 percent of the lender’s 2011 net profit will be paid out in dividends, compared to the 41 percent (z∏.1.37 billion) originally proposed. “The higher dividend will not affect the bank’s development strategy. Although the capital adequacy ratio will fall a bit more than it would have

under the dividend recommended by the board, it will still remain at a high level,” Zbigniew Jagie∏∏o, president of PKO BP, told reporters. The Treasury Ministry currently holds a 40.99 percent stake in the lender, while state-owned Bank Gospodarstwa Krajowego is the second-largest shareholder, with 10 percent. David Ingham

Rados∏aw Sikorski: “Europe needs Poland’s optimism”

Henryka Bochniarz on businesses’ priorities for the presidency

The six official partners of the presidency and how they will profit 3

4-5

POLAND’S PRESIDENCY W a r s a w B u s i n e s s J o u r n a l ’s s p e c i a l s u p p le m e n t o n P o l a n d ’s p re s i d e n c y o f t h e C o u n c i l o f t h e E u ro p e a n U n i o n

•

JULY 11-24, 2011

Lobbying

Polish firms missing a golden opportunity? Few Polish companies have the money or experience to influence the decision-making during Poland’s EU presidency. But they could learn a lot

A delicate issue

COURTESY OF KPRM

Piotr Nowiƒski, account manager at public relations firm Edelman The Centre, has been advising companies that lobby the EU in Brussels for the past five years. Before that, he wrote an MA thesis on Polish lobbying in Brussels. But, he said, “basically, there was not enough material to write about, since Polish companies five years ago didn’t have much experience to share.” As Poland takes up the presidency of the EU Council, have things changed? “It has developed slightly, but not much,” Mr Nowiƒski said. EU institutions legislate on issues that affect the largest economic union in the world, and are thus prime targets for lobbyists. According to organizations such as the Alliance for Lobbying Transparency and Ethics Regulation and the Corporate Europe Observatory, there are over 15,000 professional lobbyists in Brussels.

private Polish company featured on the EU’s register – less than five. Many Polish companies may simply lack the money to maintain a presence in Brussels. This could go some way towards explaining why the most prominent Polish businesses that lobby in Brussels are state-owned giants such as Polish Post, Polish State Railways, gas monopoly PGNiG and natural gas infrastructure operator Gaz System. Moreover, firms need to take a long-term perspective when they begin lobbying activities, and that’s not something Polish companies tend to do, said Mr Nowiƒski.

These European Parliamentarians don’t have many Polish firms trying to influence their decisions New to the game About 3,800 entities and individuals are listed on the EU’s Transparency Register, which

comprises “organizations and self-employed individuals engaged in EU policy-making and policy implementation,”

according to the EU. Out of those entities, only 48 are based in Poland. They include NGOs, think

tanks, professional and trade associations, as well as business groups. Interestingly, however, there are very few

Because lobbying usually aims at long-term objectives, Boles∏aw Rey, representative for PGNiG in Brussels, said his company won’t pursue any particular goals during the Polish presidency. Although PGNiG does support the presidency and its policy goals – including those related to the exploitation of Poland’s shale gas reserves, the presidency is politically – and not business – oriented, Mr Rey explained. Continued on p. 6 ➡

Economic impact

Presidency to boost hospitality, travel industries Hotels, conference centers, airlines and railway firms are set to benefit from Poland’s EU presidency

In this supplement Lobbying in the EU . . . . . . . . . . . . . . . . . . . . . .1, 6 Economic impact . . . . . . . . . . . . . . . . . . . . . . . .1, 6 Environmental policy . . . . . . . . . . . . . . . . . . . . . .3 Interview with Henryka Bochniarz . . . . . . . . .3 Ministries’ goals . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Interview with Radosław Sikorski . . . . . . . . 4-5 Official partners . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Profile of Jerzy Buzek . . . . . . . . . . . . . . . . . . . . . .8 Calendar of important events . . . . . . . . . . . . . .8

The travel, tourism and hospitality sectors of the Polish economy are set to enjoy a windfall of spending during Poland’s EU presidency. Poland’s government estimates the total cost of the presidency at around z∏.430 million, much of which will be

spent in the country on accommodating guests and ferrying them around Poland. Some 30,000 EU administrative officials (who will all need accommodation) are expected to attend roughly 2,000 meetings (which will all need conference space) during the six-month period. “With so many meetings of political officials and so many European experts, this will no doubt influence the development of the tourism industry in Poland,” said Witold Micha∏ek, an economic expert

at the Business Center Club (BCC). “Not only hotels, but

tioned that at a recent conference he had attended, a whole

“This will no doubt influence the development of the tourism industry in Poland” also museums, concerts halls and the like.” To illustrate how much was being spent on travel for events surrounding the presidency, Mr Micha∏ek men-

train had been rented to transport people from Warsaw to ¸ód˝.

Polish hospitality Experts say the next several

months should be particularly good for the hospitality industry, since the presidency will be followed up next summer by another event sure to bring in visitors – the Euro 2012 soccer tournament. “Good times are ahead for the hospitality industry. Euro 2012 next summer will be another period of increased business for [hotels],” said Katarzyna Grzejszczyk from the Polish Chamber of Commerce (KIG). Continued on p. 6 ➡

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POLAND’S

JULY 11-24, 2011

PRESIDENCY

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Environment policy

Green challenges ahead for Poland The way Poland handles environmental issues could be a defining element of its EU presidency Environmental issues are all but absent from the priorities set by the Polish government for the six months it will spend at the head of the Council of the European Union. According to Henryka Bochniarz, President of the Polish Confederation of Private Employers Lewiatan, when it comes to the Polish presidency program, businesses seem to be much more focused on EU

energy and climate policies than the government. “For European industry, the decisions in this area are crucially important,” she said. “They influence our presence in the global market.” But as Poland began its presidency, environmental issues were nevertheless coming to the fore – for reasons that didn’t necessarily paint Poland in a good light. First, the country caused a stir at an EU environment ministers meeting where it singlehandedly blocked the approval of higher CO2 emission reduction targets.

“We simply can’t afford it,” argued Prime Minister Donald Tusk in the pages of Newsweek Polska. “Poland produces 95 percent of its electricity from high [CO2] emitting coal and our European partners must remember this,” he said, adding that the country will continue to oppose higher emissions reduction targets. The 50,000 Solidarity trade union members who protested in Warsaw a day before the start of the presidency also presented a view that is popular among both Polish businesses and politicians, arguing that the

EU’s climate-energy package would be “a disaster for society,” increasing energy prices and translating into job losses for thousands.

Politicians in the spotlight Environmental advocacy group Greenpeace says it will be closely watching the work of four politicians: Prime Minister Tusk, Deputy Prime Minister Waldemar Pawlak, Environment Minister Andrzej Kraszewski, and Agriculture Minister Marek Sawicki, all of whom are set to lead EU talks on crucial environmental issues over the next few months.

Deputy Prime Minister Pawlak will be leading talks on energy efficiency, something both Poland and the CEE region as a whole have a poor history of, while Minister Kraszewski will lead discussions on new legislation for genetically modified crops, an issue over which Poland has previously ruffled EU feathers. Minister Sawicki will also be in the spotlight as he leads talks on the bloc’s first Common Fisheries Policy. At the same time, Prime Minister Tusk will be coordinating the EU’s position at the UN climate change conference in Durban, South Africa and par-

ticipating in EU discussions on sustainable economic growth and the modernization of Central and Eastern Europe’s energy sector. The government will also be chairing new EU negotiations on increasing CO2 emissionreduction targets for 2050. On this issue however, Robert Cyglicki, program director for Greenpeace in Poland, said his organization didn’t expect ambitious targets to be set. “We all know that Poland is not a big fan of the European climate policy. What we ask of the government is to be neutral Alice Trudelle and fair.”

The voice of business

COURTESY OF PKPP LEWIATAN

Henryka Bochniarz, president of the Polish Confederation of Private Employers Lewiatan, explains the priorities of Polish businesses regarding the EU presidency

Alice Trudelle: How much do business priorities match with those of the government, where do they differ, and why? Henryka Bochniarz: In its presidency program, the government wants to deal with issues concerning the common EU market, particularly those related to e-trade and digital markets.

Everybody agrees that the EU needs a new opening in those areas (and quick). We have to solve the problem of different consumer-rights protection systems, which prevent the EU’s internet economy from developing, and we have to tackle fragmentation in the field of copyright protection and intellectual property management. If we don’t succeed, there’s no way we can improve the exchange of digital content. As far as the next financial perspective is concerned, we have a similar approach towards defining the most urgent tasks for the subsequent six months. This subject matter needs to be handled by our presidency exofficio, but we do know that the government is quite determined to pre-

pare the negotiations well and commence them effectively. As for the differences – businesses speak up for integrated climate and industry policies based on highquality impact assessments for European industry, the decisions to be made in this area are crucial. They influence our presence in the global market. Over the next six months we would also like more attention to be paid to labor-market reforms such as flexicurity, migration from third countries and pension-system modernization. These are sensitive and difficult issues which aren’t visible enough in the Polish government’s agenda. In our opinion, they should not be sidelined. The differences also stem from the fact that our postulates are presented not only to the Polish government, but also to the European Commission and Parliament. A number of issues important for entrepreneurs should be handled by those institutions. A lot depends on their determination. The Polish presidency – even if it’s prepared and carried out perfectly – won’t tackle those problems on its own.

How realistic are the business priorities and are they compatible with the EU agenda? Lewiatan and BUSINESSEUROPE, along with all the other 40 associated federations, will spare no effort to have them executed. The process is likely to take much more than a few months. In today’s European Union, most of the strategic guidelines are known (Europe 2020, the Single Market Act, the Lisbon Treaty). It’s high time they were implemented. We’re not trying to reinvent the wheel or find a new recipe for prosperity. We all know the recipe. What we’re trying to say is that everybody should stick to the arrangements, thinking about the well-being of the whole Union, not only of particular interests. What’s the measure of success? [Success will include] the implementation of the key initiatives delineated in the Common Market Law – pursuant to the plan drawn up by the European Commission. This will not be a success of the Polish presidency [only], but of all the institutions participating in the decision-making process. In addition, it will not be a success announced in December 2011, but a

year later. If Europe is successful, the Polish presidency will have contributed to it. If the negotiations on the future long-term EU budget are conducive to better and more effective spending, combined with increased outlays into development and competitiveness, it will be a real measure of success. Another will be if the Single Market Act is constantly implemented, taking into consideration economic growth rather than protectionism. If we manage to agree that the future energy policy in Europe should really be common and find a sustainable way to transform to low carbon economy while protecting growth in Europe and the competitiveness of the European industry, then the creation of a single European energy market and network connections, the improvement of energy efficiency, and activation of new sources of energy will mark a huge step forward. If we manage to realize that a modern labor market is a powerful engine for all European states, driving their development, then that will encourage the proper political decisions. ●

Ministry goals

Taking control of European policy From strengthening the EU’s defense capabilities to helping it adapt to climate change, Polish ministries have set themselves some lofty aims Poland’s various ministries will each take on some of the burden of running the Council of the European Union, with the Ministry of Foreign Affairs set to organize and coordinate Poland’s overall effort.

The Ministry of National Defense says it wants to strengthen the bloc’s ability to plan and conduct military and civilian operations by increasing the capabilities of the EU’s battle groups and developing the capacity of the EU’s Common Security and Defence Policy. It plans to implement a number of “pooling and sharing” initiatives, aimed at enhancing multinational cooperation in the development of joint defense capabilities. It also aims to deepen EU cooperation on security and

defense with its eastern neighbors. The Ministry of Environment has charged itself with helping Europe to adapt to the adverse effects of climate change. It will also focus on making the use of resources more efficient and on protecting environmental diversity. The ministry will also prepare the EU’s official position on global sustainable development in preparation for the RIO+20 Earth Summit, which will take place in June 2012. The Ministry of Agricul-

ture and Rural Development says that food security is its main priority. Minister Marek Sawicki said during recent talks at the European Parliament that his ministry wanted to reform the system of direct payments to farmers, as well as the EU’s rural development policy. The Ministry of Infrastructure will work on developing the European Network and Information Security Agency. It also plans to increase access to wireless broadband internet as part of the European Com-

mission’s Radio Spectrum Policy Programme. The Ministry of Culture and National Heritage will

focus strongly on the issue of copyright-related to audiovisual matters. Barbara G´dek

Budgeting for the presidency Under a long-term program entitled “Preparation for and holding of the Polish Presidency of the Council of the European Union in the second half of 2011,” Poland will spend a total of z∏.429.4 million. Some z∏.104 million was earmarked for 2010, z∏.299.6

million for 2011 and z∏.25.6 million for 2012. In an email sent to WBJ, the Ministry of National Defense said it was planning to spend z∏.3.24 million in total. All other ministries declined to reveal details about their individual spendBG ing plans. ●

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PRESIDENCY

JULY 11-24, 2011

Interview

Sikorski: Europe needs Poland’s optimism

COURTESY OF THE MINISTRY OF FOREIGN AFFAIRS

“Sometimes I wish some in the euro zone had done what Poland did. That is, put a constitutional limit on public deficit”

ARABIAN HORSE DAYS POLAND 2011 Janów Podlaski Stud, 5-7th of August, 2011

VESTY photo

Information: POLTURF Al. Wyścigowa 4-B/84, 02-681 Warsaw, Poland phone (48 22) 857 76 44, fax (48 22) 857 76 47 biuro@polturf.pl

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With Poland having taken over the Presidency of the Council of the EU on July 1, Foreign Minister Rados∏aw Sikorski will be at the center of much of the country’s inter-EU politicking over the next six months. In a recent interview with foreign journalists, the Oxford-educated former war correspondent talked extensively on all of the major issues that Poland will be faced with as it takes on this position of influence within the bloc.

Priority number one: economic growth At the beginning of the discussion, Mr Sikorski made it clear that putting Europe back on the path of economic growth was at the top of the agenda. “Poland’s first priority is to restore growth in Europe. From that, much else will follow,” Mr Sikorski said. “There would be greater solidarity, a greater openness to enlargement and greater generosity to its [Europe’s] neighbors.” Mr Sikorski talked up the idea of a “complete” European single market, particularly when it comes to services and the internet. He emphasized Poland’s optimism as a productive force, echoing Prime Minister Donald Tusk’s words that Poland “believes in Europe.” Indeed Mr Tusk has stated that one of Poland’s aims during this presidency is to restore “faith and energy” to Europe. Mr Sikorski insisted that it was Poles’ optimism that helped the Polish economy weather the 2008-2009 economic crisis without going into recession. “Of course there were other factors, like tax cuts, the depreciation of the z∏oty, remittances from Poles abroad

and some other things. But the single most important reason we came through the crisis well was the unflappability of the Polish consumer,” he said. “We Poles have seen much worse, so we were not fazed by the crisis and that helped keep the economy rolling.”

Budget battle A key issue for Poland during its presidency will be talks on the EU’s 2014-20 budget. It’s no secret that squeezed national budgets and the climate of economic instability around the continent have made the biggest net payers into the EU budget determined to reduce their contributions. Poland, as the largest beneficiary of EU funds, stands to lose the most if that were to happen. Mr Sikorski said he knows the negotiations will be difficult, but he doesn’t seem to be losing sleep over the prospect. “Budget talks are always a fight, this one will be no different,” he said. He added that the real division in the budget debate is between those member states that want to wait on the negotiations until they see their first, concrete, net payment figures, and a second group of countries that want to prejudge the outcome even before the process has started.

Greek tragedy Concerning the current Greek crisis and Poland’s take on it, Mr Sikorski said that while Poland was not a member of the euro zone, the country was trying to be part of the solution. He pointed to the fact that the country had “chipped in” $200 million for Iceland, as well as for Latvia, and was now ready to put up €250 million

for Greece. But on this matter the foreign minister couldn’t resist taking a jab at some euro zone members. “Sometimes I wish some in the euro zone had done what Poland did. That is, put a constitutional limit on public deficit. Remember it was not only Greece who broke the Stability and Growth Pact, but so did the big boys [in the euro zone].” Germany, France and Italy all exceeded the 60 percent public debt-toGDP ratios allowed by the pact last year.

A bigger EU Poland strongly supports continued EU enlargement and is keen to see Croatia sign an accession agreement at some point over the next six months. It would also like to see its Eastern neighbor, Ukraine, in the EU some day. Right now that seems a distant possibility, but it may be coming somewhat closer. Ukraine will soon have to choose between offers to join a free-trade zone with the EU and Moscow’s invitation to join its customs union with Belarus and Kazakhstan. Indications are that it will opt for the EU plan. Poland hopes that EUUkraine negotiations on the free-trade zone will be finalized before the September Eastern Partnership summit scheduled to take place in Warsaw. WBJ asked Mr Sikorski how likely it was that this deadline would be met. “Last week I spoke with the Deputy Prime Minister of Ukraine in charge of the negotiations and also with the German EU negotiator there. We are on schedule. If we proceed at the pace we are at right now, it should happen in September,” Mr Sikorski said.

European security Poland has long been in favor of increased EU-NATO cooperation, but factors including the seemingly intractable Turkey-Cyprus issue have long been a stumbling block. Mr Sikorski acknowledged the problems but said that Poland will focus on what is “doable.” He also lamented the lack of a comprehensive EUNATO cooperation agreement, saying it was “tragic and unacceptable.” Mr Sikorski recalled how, a

POLAND’S

JULY 11-24, 2011

PRESIDENCY

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“Personally I think Tunisia is the most likely to succeed”

Promoting democracy Beyond that, Mr Sikorski was keen to emphasize that Poland was taking an active role in the Libya crisis, though not militarily. “I was the first EU Foreign Minister to visit Benghazi,” Mr Sikorski said. He also visited Tunisia and Egypt in the wake of the revolutions there. However, he has mixed feelings about the chances each of the countries have in introducing full-fledged democracy. “Personally I think Tunisia is the most likely to succeed. I was really impressed that they introduced 50-50 [gender] parity for the next elections,” he said, adding that the Tunisians had an educated population, had “liberated” their women, were closely tied to France and Europe and had a sophisticated intellectual and political elite. “Egypt is different,” he said. “They have a high rate of illiteracy, radicals with strong followings and they also have a diverse ethnic mix. It will be much harder for them.” Mr Sikorski said that though the Arab Spring has been compared to the transitions in Eastern Europe in 1989, he would rather liken it to the machinations of 1980, when Solidarity was just taking off in Poland. “There will be be steps forward and steps backward, like after the heady beginning of Solidarity, after which martial law was introduced in Poland. We should be ready for the long haul,” he said, adding that the transformation of Arab countries, which have a combined population of some 500 million, would not take a few years, but decades. For this reason, he said, Poland has proposed the creation of a European Endowment for Democracy – an autonomous body that would aid North African and Middle Eastern countries in their transitions to democracy, regardless of governmental changes either in the Arab world or in Europe.

Palestine vote Discussion moved from the Arab Spring’s democracy movements to the issue of Palestine. In September – in the middle of Poland’s EU presidency – a UN vote on the

COURTESY OF THE MINISTRY OF FOREIGN AFFAIRS

few years ago, he had proposed that the EU send five Personal Rapid Transit (PRT) vehicles to key areas in southern Afghanistan. These non-combat vehicles, also called “podcars”, which are used for transporting the sick and injured or for public transportation, “would have made a difference there,” said Mr Sikorski, “but to do it, we needed either a EU military mission, for which there was no consensus, or for NATO to protect the PRTs, for which there was no EU-NATO agreement to base such cooperation on.” Poland is also pushing the EU itself to increase its defense capabilities. Mr Sikorski said the situation in Libya was a good argument for a more joined-up EU logistics network, increased burden sharing, the establishment of an operations HQ and generally increased European planning capability. Some headway has been made on the security issue, thanks in part to Poland. In December of 2010, the Weimar Triangle (France, Germany and Poland) submitted a letter to the EU’s Foreign Affairs Council calling for the development of a common security and defense policy, with a view to strengthening military and civilian capabilities in Europe. The suggestions were accepted by the Council, and the EU’s High Representative, Catherine Ashton, was tasked with working with member states to achieve concrete results by the end of this year. But since Poland has placed so much emphasis on greater European military activity, WBJ asked whether it was not hypocritical for the country to refuse to play an active military role in the ongoing Libyan operation. In response, Mr Sikorski pointed out that Poland had taken an active military role in a number of other conflict regions. “We are already in missions in Bosnia, Kosovo and in Afghanistan. We were in Iraq. Britain is in Iraq, Afghanistan and Libya. France is in Afghanistan and Libya but passed on Iraq. These are individual choices which each country makes, that’s just the way it goes,” he said.

Mr Sikorski played down the fact that Poland has not intervened militarily in Libya recognition of Palestine as an independent state is likely to occur and has the potential to be an explosive point of contention worldwide. Mr Sikorski said the EU is working to forge a common position, but stressed that any common European stance would depend on the resolution’s final wording. “Meanwhile, the EU member states have agreed to refrain from revealing their individual positions while consensus is sought, “ Mr Sikorski said.

Ashton’s ally When it comes to EU foreign policy, both the recently launched diplomatic arm of the EU, the External Action Service (EAS) and its head, Catherine Ashton, have come under heavy criticism, accused of inefficacy in the face of crises such as those in North Africa. But while she may have many detractors in the EU, Ms Ashton appears to

have an ally in Warsaw. “There are two types of criticism: the first kind wants what is being criticized to work and the second kind wants what is being criticized to fail. Sometimes I get the feeling that much of the criticism of the EAS is the second kind,” Mr Sikorski said, adding that the diplomatic corps was still in its early stages and needed to be given time to develop. He also expressed admiration for Ms Ashton regarding her ability to handle a jam-packed schedule.

Vetoing carbon emissions reductions Just a few days before assuming the presidency, all but one EU country – Poland – had agreed in principle to the European Commission’s 2050 Low-carbon Roadmap, which calls for cuts in carbon emissions from 1990 levels of 40 percent by 2030, 60 percent by

2040 and 80 percent by 2050. Poland’s stance brought it some heavy criticism just as it was launching its EU presidency. Had Poland started off on the wrong foot? Mr Sikorski was not apologetic. “Poland has been consistent in its policy. God gave us coal and we will exploit this before we are able to develop and exploit our shale gas reserves. Till then we have to rely on coal for our electricity,” he said. Mr Sikorski added the claim that Poland was in fact a leader in cutting carbon emissions, saying the country had reduced its CO2 emissions levels by 30 percent since 1990. “We started this process earlier, while others are just starting now,” he said.

Will elections spoil the party? Mr Sikorski also weighed in on Poland’s parliamentary

elections set to take place this fall, which many worry could disrupt Poland’s presidency. “If we [Civic Platform] win the elections,” he said, “then that would mean the presidency will be run by ministers who have threeand-a-half years’ experience in ruling and in preparing for the presidency. If we lose, we will still be in charge till December, because coalition talks and the formalities of taking over government will take weeks.”

Optimism justified? Prime Minister Tusk has made it clear that optimism will be the buzzword for Poland’s presidency, and certainly Mr Sikorski exuded confidence that the country would meet all of the challenges it faces. Whether that optimism is justified will be clear at the end of December. Remi Adekoya

POLAND’S

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PRESIDENCY

JULY 11-24, 2011

Polish firms missing a golden opportunity? ➡ Continued from p. 1 PGNiG, he said, is therefore more concerned with legislation and with the daily activities of the European Commission. Agnieszka Cianciara, an expert on lobbying at the College of Europe, pointed out that since the country that holds the EU presidency plays the role of a consensus-

builder, opportunities for pushing national business interests are limited. However, Polish officials, who will be leading discussion groups on a range of topics during the presidency, can promote certain aspects of legislative issues being discussed at the council level – but they must do so subtely. “There is very little leeway

for the presidency to strongly influence any legislative outcome,” explained Mr Nowiƒski. “They are the deal brokers, but they need to appear as impartial as possible.”

Negative associations Lobbying tends to have negative associations and is widely linked with corruption in Poland, presenting

further disincentive for companies to get involved. A 2009 survey by global public relations and communications consultancy BursonMarsteller found that only 3 percent of Polish leaders considered lobbying to be a legitimate part of the decision-making process, compared to the European average of 48 percent.

Meanwhile, 90 percent of Polish respondents said that a lack of transparency was the most prevalent weakness in lobbying practices, compared to a European average of 57 percent. Both Ms Cianciara and Mr Nowiƒski agreed, however, that one of the biggest opportunities the presidency could provide for Polish companies

is the chance to learn more about Brussels and how things are done there. Polish businesses would profit from a better understanding of what exactly each institution is responsible for, and from grasping the longterm nature of the legislative issues the EU is working on, they said. Alice Trudelle

➡ Continued from p. 1 “Apart from that, this is also a good time for Polish cities to promote themselves, first during the presidency and then during the soccer championships,” she added. Polish Travel, a tourist agency, was selected by the Ministry of Foreign Affairs to organize the booking and accommodation for the officials who will be visiting Poland. “All in all, the Foreign Ministry anticipates about 30,000 to 45,000 room book-

ings, so that can give you an idea of the scale of the endeavor,” said Dariusz Pa∏´cki, head of Polish Travel.

Not only hotels With the number of officials set to descend on Poland from now till December, airlines will also see increased business, especially those servicing the Warsaw-Brussels route. Taxi-drivers are also sure to transport more passengers and translation agencies should also be able to get a piece of the pie.

“Not only will the tourism industry benefit,” said the BCC’s Witold Micha∏ek, “so will security agencies and even the Polish police. There is a marked increase in the police presence on the streets. They must have received a bigger budget for this.” Precisely how much Polish businesses will gain from the presidency and what its total economic impact will be is anybody’s guess. But there’s no doubting that plenty of sectors will see a much-needRemi Adekoya ed boost.

COURTESY OF WIKIMEDIA COMMONS

Presidency to boost hospitality, travel industries

The foreign ministry predicts between 30,000 to 45,000 bookings at hotels such as the Bristol in Warsaw

Legal Forum

Class action law: what it means for Poland Rados∏aw Biedecki Partner Last year, for the first time, it became possible to bring a class action law suit in Poland, meaning access to justice has been broadened. The institution of class action is aimed at giving access to the courts for those who cannot afford to launch individual lawsuits. Above all, class action law helps individual consumers to take action against corporations. Consumers, however, are not the only ones who stand to benefit: class action law can also be advantageous for entrepreneurs. Class actions can be brought in cases related to consumer protection, responsibility for damage caused by dangerous products, and tortious acts (but excluding protection of personal rights). Unlawful competition practices are classified under the category of tortious acts, meaning class actions can be brought by entrepreneurs who suffer as the result of such practices.

How does it work? A group of at least 10 people have the right to pursue claims under the aegis of class action legislation. The fee paid in a group proceeding amounts to 2 percent of the value of the subject of the litigation, but it may not exceed z∏.100,000. All members of the group participate in paying the fee, thus making this type of proceeding much cheaper than individual cases (which cost 5 percent of the value of the subject of the litigation). Moreover, to make access to court easier for those who want to launch a class action suit, the institution of a contingency fee has been implemented. This means that the fee paid to the attorney at law who represents the claimants comes in the form of an agreed percentage of the sum awarded as a result of the judgment. Claimants do not, therefore, have to incur any costs related to their attorneys’ remuneration before

the court has made its decision. Unlike under US regulations, Polish class actions are based on a “opt-in” model of participation, which requires that (i) claimants declare themselves, so that they are not anonymous and that (ii) each claimant declares his will to participate in the class action suit. Once a statement of claim is filed, it is announced in the press so that all those who may potentially be interested in joining the case (the “group”) can do so. Those who do not join the original group may launch a class action suit on the same matter in the event that the first group receives a favorable verdict. This possibility increases the risk that a successful class action by a moderately sized group will provoke a wave of new class actions, or an avalanche of further individual claims by persons who would be almost certain of winning. It should be noted that a class

action does not exclude individuals from making claims under the general regime of liability currently in force in Poland. Moreover, it is possible to file a class action suit just to establish the compensation liability of a defendant. After a judgment that confirms the legal responsibility of the defendant, the claimants may file their own individual claims for payment. That solution is most convenient in cases where individual claimants have compensation claims that differ greatly from one another.

A new legal landscape Announcing a class action suit in the press may have a negative impact on the value of the defendant’s brand. The claims must therefore first be addressed to the defendant, which then has a chance to conclude an unfavorable pre-litigation amicable settlement, instead of bearing the heavier costs related to the public

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market. The content is created in consultation with Warsaw Business Journal's editorial staff.

announcement that a class action suit has been filed against it. The introduction of class action in Poland means new risks have to be taken by firms operating in sectors susceptible to damages caused by hazardous products (e.g. the tobacco and pharmaceutical industries), or where relations with consumers are standardized on a mass scale (banks, insurance companies, developers, tourism). At present a group of 876 clients are suing a bank that introduced unfavorable provisions concerning interest rates in their loan agreements. In June, the court agreed that a class action lawsuit could be filed in this case. It must be emphasized, however, that despite widespread anticipation about class action in Poland, its introduction hasn’t yet brought about a flood of civil suits from consumers. Perhaps people need to be encouraged by successful proceedings initiated by the more daring. ●

POLAND’S

JULY 11-24, 2011

PRESIDENCY

EU presidency

COURTESY OF ORLEN

Six firms see prestige, profit from official partnership

Orlen will provide pre-paid fuel cards worth z∏.1 million

Six firms have been chosen as official partners for Poland’s EU presidency. The exposure they will get could translate into significant profit Poland’s presidency of the Council of the European Union is set to be an expensive affair, with total spending for the period 2010-2012 expected to be in the region of z∏.430 million. To help with the cost of hosting the presidency, in August last year the ministry launched a process to find six main partners from sectors such as transport, telecommunications and technology. The main criterion for selection was simply the ability to provide a beneficial service. Though the firms did not have to be Polish, they were also required to have already had a presence in the local market.

Select six

Concrete income Although none of the firms will receive any financial reimbursement for providing goods or services during Poland’s six-month term, they will enjoy the prestige associated with supporting the presidency. “It will definitely bring about concrete income for companies providing services needed during numerous meetings to be organized within the next six months,” said Marzena Chmielewska, director of PKPP Lewiatan’s European department. One of the key sectors which needs support is trans-

David Ingham

COURTESY OF WIKIMEDIA COMMONS

The six companies to have won partnership are French car manufacturer Peugeot, telephone operator Orange, mineral water producer Kropla Beskidu, Polish oil refiner PKN Orlen, computer giant Microsoft and Swedish bus manufacturer Scania.

“The main aim of the agreements is to save public funds, as the companies can contribute free of charge,” said Magdalena Lumiƒska, of the Department of Coordination of Poland’s Presidency of the EU Council at the Ministry of Foreign Affairs. “These agreements could save [the state] around z∏.10 million,” she added.

port, with car manufacturer Peugeot providing the use of 117 passenger vehicles, including the lease of 52 new 508 model cars and three iOn electric cars. In addition, Scania has lent six Scania Touring HD coaches, with the combined fleet to be used to transport the 30,000 participants to meetings across Poland. These vehicles will be refueled by oil giant PKN Orlen, which has offered prepaid fuel cards worth a total of nearly z∏.1 million. Microsoft, Orange, as well as Coca-Colaowned Kropla Beskidu complete the lineup, providing software, mobile services and water respectively. But while the official partners are sure to benefit in terms of publicity, the economy as a whole could be rewarded by Poland being in the European spotlight. According to Ms Chmielewska, a well-organized, professional and welcoming presidency will help strengthen positive perceptions of Poland as a good place to do business. “This kind of advertisement – largely based on personal experience and visitors’ opinions – is invaluable to each country,” she said.

Peugeot is providing 117 vehicles to transport EU delegates, including 52 new 508s

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POLAND’S

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Politics

JULY 11-24, 2011

EU Presidency Calendar

Jerzy Buzek

European politicians and bureaucrats will descend on Poland during its presidency of the Council of the European Union, whether to Warsaw, Wroc∏aw, Poznaƒ or Sopot. Nevertheless, some essential meetings to watch out for will also take place in Brussels, Luxembourg and even Washington, DC.

JULY 12

THE ECONOMIC AND FINANCIAL AFFAIRS COUNCIL (ECOFIN), BRUSSELS Economic and finance ministers from the 27 states will meet, along with budget ministers

18-19 GENERAL AFFAIRS COUNCIL (GAC) AND THE FOREIGN AFFAIRS COUNCIL (FAC), BRUSSELS The councils prepare the budgetary perspective, debate EU enlargement and execute administrative functions

SEPTEMBER 26 MINISTERIAL CONFERENCE OF THE MINISTRY OF LABOR ON SOCIAL PRIORITIES, “THE SOCIAL IMPACT OF ECONOMIC CRISIS: SHORT AND LONG-TERM ACTION UNDER THE ANTI-CRISIS POLICY,” WROCŁAW With protests against austerity measures flaring up all over Europe, the meeting will be a test of how much Europe can tighten its belt

29-30 EASTERN PARTNERSHIP SUMMIT, WARSAW In one of the most important events of the Polish presidency, member states will discuss democracy, development, and visas with the former post-Soviet states to Poland’s east and in the Caucuses

OCTOBER 3-4 SINGLE MARKET FORUM (SIMFO), KRAKÓW

COURTESY OF THE EUROPEAN PARLIAMENT

Businesses, social partners and NGOs will meet government officials to discuss continued unification of the EU’s single common market

THE ECONOMIC AND FINANCIAL AFFAIRS COUNCIL (ECOFIN), LUXEMBOURG

THE ENVIRONMENT COUNCIL (ENVI), LUXEMBOURG All eyes will be on Poland since it was recently the sole voice opposing higher EU CO2 emissions reduction targets

GENERAL AFFAIRS COUNCIL (GAC) AND THE FOREIGN AFFAIRS COUNCIL (FAC), LUXEMBOURG

17-18 EUROPEAN COUNCIL, BRUSSELS

Mr Buzek is the first former Eastern Bloc politician to become president of the EP

WBJ takes a biographical look at the EU’s most prominent Pole No Polish politician has played a more prominent role in the European Union than Jerzy Buzek, a former prime minister of Poland and now the president of the European Parliament (EP). The EP shares legislative power with the Council of the European Union, which Poland now heads. Having this ally in Brussels could make it easier for Poland to push its priorities on issues such as the EU budget. Mr Buzek is well liked in European circles, and his tenure has widely been considered successful. Mr Buzek was appointed European Parliament president in July 2009, becoming the first person from the former Eastern Bloc to hold the position. Coincidentally, Mr Buzek’s term of two-and-ahalf years will come to an end in January of next year, just after Poland hands over its current EU presidency to Denmark. One of Mr Buzek’s biggest headaches as EP president has been dealing with the allegations of corruption, illegal lobbying and mismanagement of public funds that have been leveled against several members of the European Parliament (MEPs).

in the EP), approved a new code of conduct for MEPs. The code, which is awaiting passage by the European Parliament, sets out rules and principles that MEPs would have to follow in their contacts with outside parties in order to avoid conflicts of interest. “We now have a strong proposal for the first-ever code of conduct for the European Parliament. The proposals set

“Having this ally in Brussels could make it easier for Poland” high standards [for us],” Mr Buzek said. According to the code, MEPs would have to provide clear declarations of their paid activities outside parliament, as well as the remuneration they receive. They would also have to declare all other activities which might constitute a conflict of interest. The code contains an explicit ban on MEPs receiving payments or other rewards in exchange for influencing parliamentary decisions. It also sets out clear rules on the acceptance of gifts and on the issue of former MEPs working as lobbyists.

Before the EU Code of conduct On July 7 this year, the Conference of Presidents (made up of the EP President and the leaders of political groupings

Born on July 3, 1940 in what is now Smilovice, in the Czech Republic, Mr Buzek moved with his family after World War II to Chorzów in the Sile-

sian region of Poland. In 1963, he graduated from the mechanics and energy department of the Silesian University of Technology, specializing in chemical engineering. He later worked as a scientist at the Polish Academy of Sciences. Mr Buzek was a member of the opposition Solidarity movement in the 1980s and was an active organizer of the trade union’s regional and national underground authorities. In 1996, Solidarity Election Action (AWS), a coalition of over 30 parties which brought together liberal, conservative and Christian Democratic politicians, was established as a political party. Mr Buzek cowrote the AWS’s economic program and was appointed Prime Minister after it won the parliamentary elections in 1997. His cabinet’s major achievements included the introduction of four significant political and economic reforms. These reforms, separately, established new administrative divisions in Poland, overhauled the pension system, reformed the education system, and revamped the health-care system. Additionally, it was under Mr Buzek’s watch that Poland started accession negotiations with the EU (1998) and was accepted as a full-fledged member of NATO (1999). Mr Buzek remained PM for four years until the next elections in 2001, in which AWS failed to garner enough votes to make it into parliament. Remi Adekoya

NOVEMBER 14-15 MINISTERIAL MEETING OF THE EU AND US INVOLVING INTERNAL AFFAIRS AND JUSTICE, WASHINGTON DC President Obama’s visit to Poland was a test of the Poland-US relationship, but the EU-US partnership will force Europe to harmonize its many voices and opinions

THE ECONOMIC AND FINANCIAL AFFAIRS COUNCIL BUDGET (BUDGET ECOFIN) MEETING, BRUSSELS Poland receives extensive funding from the EU, but the crisis may threaten this

21-22 MEETING OF MINISTERS OF DEFENSE AND OF FOREIGN MINISTERS (FAC) AND GENERAL AFFAIRS COUNCIL (GAC), BRUSSELS DECEMBER 5-6 GENERAL AFFAIRS COUNCIL (GAC) AND THE FOREIGN AFFAIRS COUNCIL (FAC), BRUSSELS 9

EUROPEAN COUNCIL, BRUSSELS

JANUARY 1 DENMARK TAKES OVER THE PRESIDENCY OF THE COUNCIL OF THE EUROPEAN UNION FROM POLAND Source: pl2011.eu

In this week’s Residential in Focus, we look at how good developers and agents in Poland are at dealing with foreign clients

Warsaw is set to get what will probably be the narrowest house in the world

14-15

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

Developer Yareal Polska has selected Henpol as the general contractor for its Ho˝a 55 upmarket residential project in Warsaw. Construction on the development, which will be located on ul. Ho˝a in the capital’s central district is expected to start later this summer. The Ho˝a 55 project will comprise two buildings which will offer a total of 61 exclusive apartments sized from 30-177 sqm. The scheme will also include 78 underground parking spaces.

C&A in Futura Park Developer Neinver Polska has secured clothing retailer C&A for its under-construction Futura Park Kraków retail project in Modlniczka near Kraków. The company has leased 1,455 sqm of space on the ground floor of the development. Futura Park Kraków will combine a retail park and an outlet center, offering 42,000 sqm of retail space. ●

In this issue Andersia Business Centre . . . .13 Nowa Dana in Szczecin . . . . . .13 Residential offers . . . . . . . . . . . .14 Foreign client services . . . .14-15 List of developers . . . . . . . . . . .15 List of brokers . . . . . . . . . . . . . .15 New Warsaw mall . . . . . . . . . . .16 Residential brands of the year .16 World's narrowest house . . . .16 PKP properties . . . . . . . . . . . . . .17 Property-related stocks . . . . . .17

JULY 11-24, 2011, LI 16/27-28

Office space

Building on Andersia Business Centre set to begin The scheme’s developers have recently secured financing for the project Construction is expected to commence this month on the above-ground section of the Andersia Business Centre (ABC) office project in downtown Poznaƒ. The scheme, which is being jointly developed by the City of Poznaƒ and Von der Heyden Group, has just obtained financing from Bank Zachodni WBK. “I am particularly proud and relieved to have been able to strengthen our ties with BZ WBK, which, even during a difficult time in the market, has at all times during the last few years been a reliable and also commercially thoughtful partner. Getting projects of this size financed is not that easy these days,” Sven von der Heyden, chairman of Von der

Heyden Group, said in a statement. Located at Poznaƒ’s Andersa Square and valued at €33 million, the Andersia Business Centre scheme will deliver 11,200 sqm of office space on four floors and 2,300 sqm of retail space on the ground floor. The development, which is being built by Porr Polska and commercialized by Knight Frank, is scheduled for completion in September 2012. The ABC project is the third phase of an investment which has to date seen the construction of the Poznaƒ Financial Centre and Andersia Tower schemes at Andersa Square. Those developments were sold in 2004 and 2008, to AIB Polonia Property Fund S.a.r.l. and DEKA Immobilien, respectively. Two towers are in the pipeline with a total of 35,000 sqm of GLA. Adam Zdrodowski

COURTESY OF VON DER HEYDEN GROUP

Ho˝a 55 contractor chosen

•

Andersia Business Centre has been valued at €33 million

Nowa Dana kicks off in Szczecin JW Construction Holding has launched construction on its Nowa Dana office project in Szczecin. The 125-meter highrise scheme will offer approximately 34,000 sqm of usable space on a plot formerly occupied by the Dana clothing factory on the city’s Al. Wyzwolenia and ul. Odzie˝owa. “In accordance with our previous announcements, we are expanding our portfolio of commercial investments. This time, we are launching a prestigious project which, due to

its modern nature and imposing size, will become a calling card of not only our company but also of the city and the whole region,” Tomasz Panaba˝ys, vice president of the management board of JW Construction Holding, said in a statement. Apart from office space, the Nowa Dana development will also host retail units on its lower floors. These units will offer prestigious brands which are not yet present in the Szczecin market. A number of

conference rooms, as well as an underground parking lot for almost 400 cars, will also make up the offer. The investment is scheduled for completion in 2014. One of Poland’s largest residential developers, J.W. Construction Holding is present in the Warsaw, ¸ódê and Gdynia markets, as well as abroad. The company also conducts construction activity. The firm has been listed on the Warsaw Stock Exchange since June Adam Zdrodowski 2007.

Coming up: JULY 25 Finance and financial advisories – the mortgage market and residential property as a financial investment. Featuring profiles of key companies in the sector

AUGUST 8 Legal & insurance matters – pitfalls and solutions. Plus: how do Polish regulations compare with those in other European countries?

AUGUST 22 Design & innovation – trends in building, architecture and interior design

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

JULY 11-24, 2011

Developers and estate agents

Speaking the same language? Katarzyna Piasecka

COURTESY OF HOME BROKER

Polish firms know that foreign investors want well-located, luxury residences – but how good are they at providing the services foreigners need?

Apartments in high-end residential developments like Pi´kna Nova are highly sought-after by foreign clients

Advertorial Houses and residences in Konstancja estate blend perfectly into the green landscape of Konstancin. The project is located in close proximity to Warsaw, near the entry road to Konstancin-Jeziorna – a charming enclave, traditionally inhabited by the representatives of the media, business, arts and the diplomatic world. Konstancja is also located in an immediate vicinity to the American School of Warsaw. Stylish architectural details, unique design and best materials – this is what characterized the local buildings over 100 years ago and still remains as an inherent feature of Konstancja. All new residents of Konstancja can also purchase a limited edition MINI Cooper car, at a price of 19 900 PLN. The investor of Konstancja estate is Globe Trade Centre S.A. (GTC S.A.) – one of the leading developers in the New Europe with over 15 years of experience, operating in 10 countries. GTC develops projects and manages completed properties in three key sectors of real estate: office buildings and parks, retail and entertainment centers and residential sector, realized more than 130 projects in Europe.

While it can appear flush with investment opportunities, the Polish residential real estate market can also be a bewildering place for potential foreign investors, who have to deal with legal, language and cultural barriers, and who often need local partners to help them manage their properties. Non-Polish speakers, unable to navigate their way around a Polish-language website, and much less through Polish legal documents, therefore require significant levels of help from developers and real estate agents before they are able to chart a profitable course through the market. But how well are Polandbased developers and agencies prepared to meet the needs of foreign clients? Lokale Immobilia talked with developers, all of whom seemed to know what kind of investments foreigners are looking for, but a deeper look showed that the services on offer leave much for the international investor to desire.

Luxury and location In the wake of the economic crisis, foreign activity in Poland’s residential real estate market took a huge hit. As it starts to come back, developers and agents say it’s clear that foreign investors are focusing on luxury residences in central locations. “At present, foreign clients’ interest in the Polish real estate market is diminished,” said Tomasz Panaba˝ys, vice president of the management board at developer JW Construction Holding. “Interest tends to be limited to prestigious investments in the city center.” Jerzy W´glarz, PR manager at real estate agency Home Broker, agreed. “Well-located apartments purchased to be rented out are definitely the most popular residential investments among foreigners,” he said. However, Rados∏aw Bieliƒski, communications and marketing specialist at developer Dom Development, said that foreign clients who come to his company’s sales department are interested in apartments from the popular segment as well, although he admitted that a central location is still the main draw for the foreign buyer. “Most often they ask about

Home comforts In addition to location and prestige, foreign home-buyers also put a premium on residences that offer large amounts of space. “An important aspect of a dwelling is [the amount of] space, because foreigners – in contrast to Poles – are accustomed to living in a larger space,” said Martin Gutaj, cofounder of Martinisation London, a development firm. Foreign clients also look for partners that can manage their properties during periods when they aren’t in the country. “Because a significant number of foreign investors do not live in Poland, these services are especially popular,” said Ma∏gorzata Pajor, director of the residential department at OberHaus, a real estate agency.

Language barriers Many companies operating in Poland’s residential real estate market have specially designed strategies to attract foreign clients to the properties on offer that fit the bill. First though, these firms need to be able to communicate their

Selected upmarket apartments currently on offer in Warsaw Name of project

Developer

Location

Apartment size

Gross price

Standard/ amenities

Pi´kna Nova

Magnus

ul. Pi´kna 13/15, Warsaw

202.1 sqm

z∏.5,053,250

Glass and stone finishing of the building’s facades, reception with concierge

ul. Kopernika 5, Warsaw

126.4 sqm

z∏.3,492,936

High-quality finishing materials, view of the Âwi´tokrzyski Bridge and the National Stadium from the apartment, concierge services, swimming pool, jacuzzi and sauna available in the building

ul. Pu∏awska 111, Warsaw

98.6 sqm

z∏.1,587,300

Location in an old part of Mokotów, close to green areas and transport infrastructure, concierge services

Dom ul. Grzybowska 4, Warsaw Development

83.2 sqm

z∏.1,646,944

Location in the Central Business District, close to transport infrastructure and a number of green areas

BBI Rezydencja Foksal Development NFI SA

You can find more information on the project at: www.konstancja.pl Sales office: tel: +48 22 716 01 77 +48 22 716 01 74 email: konstancja@gtc.com.pl

apartments located in the area of the city center and with convenient public transport connections,” he said.

Pu∏awska 111

Grzybowska 4

ECC Real Estate

Nowe PowiÊle

Menolly Poland

between ul. Lipowa, ul. Dobra, ul. Zaj´cza and ul. Wybrze˝e KoÊciuszkowskie, Warsaw

82.4 sqm

z∏.1,154,300

High-quality finishing materials, design by APA Kury∏owicz & Associates, location close to the Vistula River and a planned subway station

Oxygen

J.W. Wronia

ul. Wronia 45, Warsaw

77.7 sqm

z∏.761,852

Central location, building designed by renowned Spanish architectural studio (architect Rafael De La-Hoz), 12.6 sqm loggia

Ho˝a 55

Yareal Polska

ul. Ho˝a 55, Warsaw

63.5 sqm

z∏.864,000

Central location, historic architecture in the neighborhood, high-quality finishing materials, green patio

JULY 11-24, 2011

offers with foreign clients. According to Ms Pajor, every reputable Polish real estate agent or company has an English-language version of its website. Moreover, all the major agencies have at least one English-language speaker at each of their offices, she said. Home Broker’s Jerzy W´glarz, however, sees the situation differently, decrying the paltry number of documents that developers translate for foreign clients. “Polish developers usually don’t provide their clients with English-language versions of the descriptions of the properties they have on offer. Only a small number of developers have an English version of their websites,” he said. Perhaps it’s in the hope that they will find, at the very least, someone who speaks their language, that foreign buyers also prefer to do business in Poland with companies that come from their home countries. “We have observed that the majority of clients who invest in apartments offered by French developer Bouygues Immobilier are themselves French, while a Chinese developer has built an investment in Warsaw’s Ochota district, where a large number of Asians live,” said Mr W´glarz.

Tangled web When it comes to websites, Polish residential firms offer something of a mixed bag, although

LOKALE IMMOBILIA – REAL ESTATE most of the largest firms do provide at least partial English-language translations of the most important sections. Few, however, offer translations in other languages. There are but a few Polish real estate agencies that specialize in providing services to clients from abroad. Loco, active on the Polish market for two years, is one. The company says it specializes in high-end apartments in the top locations in Warsaw, and that it offers services in six languages. “We decided to focus on foreign consumers because providing such services constitutes a niche in the market and is beneficial from the point of view of competition,” company representative Patrick Pi´ta said. “A foreign client in the Polish market is a little bit lost and needs more protection, which we try to provide him with,” he added. A look at Loco’s website however, shows a strange mix of Polish and English, with no clearly labeled translation button. You’ll find English descriptions of their offers below the Polish descriptions – if you know to scroll down that far.

this is expected to change in the near future. “I am convinced that this situation will gradually change, since more and more interesting projects have been appearing on the market and the prices remain very advantageous, which is encouraging for

Experts say that foreign clients’ current focus on the relatively limited supply of high-end residential real estate has so far kept the size of the foreign-buyers market limited. However,

potential in the Polish capital, but said it has a long way to go before it reaches the standards set by Western cities. “Comparing Warsaw to London we still see the Polish capital needs to catch up … but there is potential in the city. Clients are becoming more and

more demanding and are looking for more original projects,” he said. Perhaps that higher demand will create competition that will lead to a higher standard of service for foreign investors. No doubt that’s what they’re hoping for. ●

Selected residential developers in Poland Company name

Total number of completed housing units

Phone number

E-mail address

JW Construction

over 20,000

+48 22 777 90 00

sprzedaz@jwconstruction.com.pl

Dom Development

over 15,000

+48 22 351 66 33

sprzedaz@domdevelopment.com.pl

Budimex NieruchomoÊci

5,922

+48 22 623 65 55

ninfo@budimex.com.pl

Dolcan

4,000

+48 22 512 33 11

biuro@dolcan.com.pl

Gant Development

3,000

+48 22 550 56 00

warszawa@gant.pl

Echo Investment

2,640

+48 22 430 03 00

info-warszawa@echo.com.pl

Inpro

2,495

+48 58 340 03 81

developing@inpro.com.pl

Robyg

1,832

+48 22 419 11 00

sekretariat@robyg.com.pl

Ronson

1,778

+48 22 822 32 18

sprzedaz@ronson.pl

Marvipol

1,744

+48 22 536 50 50

sprzedaz@marvipol.pl

Selected residential real estate brokers in Warsaw Company

Website (in English? Y/N)

Phone number

E-mail address

dragowski.pl (N)

+48 22 827 99 50

ad@dragowski.pl

strzelczyk.pl (Y – scroll down, button on left side)

+48 22 625 15 15

bracia@strzelczyk.pl

Emmerson

emmerson.pl (Y)

+48 22 828 92 96

emmerson@emmerson.pl

Home Broker

homebroker.pl (N)

+48 22 288 80 46

kontakt@homebroker.pl

krupa.pl (N)

+48 22 834 58 58

jerzy@krupa.pl

AD. Dràgowski Bracia Strzelczyk NieruchomoÊci

Krupa NieruchomoÊci

Market set to grow?

investors,” JW Construction’s Tomasz Panaba˝ys said. This view is shared by Mr W´glarz of Home Broker, who said luxury apartments still have the most potential in terms of attracting interest from abroad. Martin Gutaj, from Martinisation London, sees huge

www.wbj.pl

Maxon NieruchomoÊci

maxon.pl (Y)

+48 22 530 60 00

maxon@maxon.pl

Meritum NieruchomoÊci

meritum.waw.pl (N)

+48 22 654 48 88

meritum@meritum.waw.pl

Metrohouse & Partnerzy

metrohouse.pl (Y)

+48 22 829 90 40

metrohouse@metrohouse.pl

ober-haus.pl (N)

+48 22 528 54 54

warszawa@ober-haus.pl

polanowscy.pl (N)

+48 22 850 95 95

office@polanowscy.plx

Ober-Haus Polanowscy NieruchomoÊci

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Panattoni Europe last month launched construction on two new warehouse buildings, both of which will be located within its Panattoni Park Gdaƒsk and Panattoni Business Center ¸ódê logistics sites. The new developments will provide a combined 18,100 sqm of new space. A press distribution company has already leased 5,300 sqm and 5,400 sqm in the developments. “Panattoni Europe’s experience and portfolio contributed to the fact that the Polish leader in the press distribution market decided to go with the same developer in both locations,” Bart∏omiej Krawiecki, managing partner – Eastern Poland at Panattoni Europe, said in a statement.

EBRD loans z∏.31 million to Immo Park The European Bank for Reconstruction and Development (EBRD) has provided a z∏.31.3 million loan to Immo Park, a special-purpose company which will finance the construction and operation of one of the first public-private partnership projects in Wroc∏aw – a planned underground parking lot which is to be located under the city’s historic Nowy Targ Square.The planned investment will involve the delivery of 331 parking spaces, as well as the refurbishment of the square through the provision of new lighting, benches and trees.

Retail properties

Yet another mall for Warsaw? Polfa Tarchomin is looking for an investor for land in the capital’s Bia∏o∏´ka district Warsaw could see yet another shopping center go up in the next few years, now that pharmaceutical company Polfa Tarchomin is gearing up to sell more than eight hectares of land in Warsaw’s Bia∏o∏´ka district. The state-owned firm, which is selling the land ahead of an expected privatization, believes it could house a major shopping-center project. Polfa Tarchomin and Polski Holding Farmaceutyczny (PHF) – the firm’s parent company – have already discussed the issue with Bia∏o∏´ka’s authorities, and say the district would welcome such

Arkadia is Warsaw’s biggest mall an investment. There is currently no large, modern shopping center located there, and some of the most popular malls in the capital are located more than 10 kilometers from the area.

The district is one of the fastest-developing in Warsaw, in terms of the number of new residential units completed each year. Completion of new infrastructure projects including Most Pó∏nocny (the North

Bridge) and a new tram line which will connect Bia∏o∏´ka with the capital’s subway line will likely boost the attractiveness of Polfa’s plot, which is nestled between ul. Modliƒska, ul. P∏ochociƒska and ul. Ekspresowa. “These investments will make Polfa properties gain in value. This is why the company, not waiting for the process of its privatization to finish, is looking for buyers for some of its most attractive real estate,” reads a statement posted on the PHF website. “It is also counting on obtaining an equally attractive price per square meter,” PHF said in the statement, pointing out that a recent transaction in Warsaw involved the sale of a similarly sized plot in the Wola district for z∏.170 million. However, real estate

experts are more skeptical. According to Magdalena Fràtczak, retail director at CB Richard Ellis Poland, there are a number of retail projects in the capital whose catchments areas will, to some extent, overlap with that of a potential shopping center that could be built on the Polfa plot. It is therefore crucial that any new mall differs in format and offer from those already in existence. “The location of the plot is very attractive, but one should not forget about already-existing retail facilities such as Auchan, Centrum Targówek and IKEA Targówek. One also has to take into account other planned investments, among them that of Neinver, which will be located in the neighborhood,” Ms Fràtczak said. Adam Zdrodowski

Residential companies

Best-recognized brands JW Construction was the best-recognized developer in Warsaw, according to a recent study A plethora of developers, estate agents and financiers operate in Poland’s residential real estate market, leaving the inexperienced would-be foreign investor in a state of confusion as to who they should turn to. Real estate services provider Nowy Adres’s recently-published “Residential Brand of the Year” survey does, however, serve to indicate those brands which are the best-known in the market. Research institute Millward

Brown SMG/KRC carried out the survey on behalf of Nowy Adres. The report’s researchers interviewed over 1,500 inhabitants of five large Polish cities and agglomerations: Warsaw, Kraków, Poznaƒ, Wroc∏aw and Tri-city. The interviewees, aged from 25 to 60, were asked to say which, for them, are the most recognizable brands on the domestic real estate market. According to 55 percent of the respondents in Warsaw, Warsaw Stock Exchange-listed JW Construction Holding is the most recognizable developer in the Polish capital’s market. JWC is followed by Dom Development (37 per-

cent) and then by Budimex NieruchomoÊci (17 percent). Bracia Strzelczyk NieruchomoÊci, meanwhile, is the best-known real estate agent in Warsaw, according to 42 percent of respondents. The AD Dràgowski agency was rated second (26.1 percent), while Metrohouse & Partnerzy came in third (16.5 percent). PKO Bank Polski and Open Finance were rated, respectively, as the best-known mortgage-provider and loanbroker on the Warsaw market. The best-known developers in Tri-city, Poznaƒ, Wroc∏aw and Kraków are, respectively, Grupa Inwestycyjna Hossa (57 percent), Ataner (48 percent),

JW Construction Holding is the best-known in Warsaw Gant Development (41 percent) and SM Salwator (21.17 percent). In Tri-city, the best-known real estate agency was Tyszkiewicz NieruchomoÊci (40 percent). In Poznaƒ,

Wroc∏aw and Kraków, the top spots were taken, respectively, by Progres (20 percent), JOTBE NieruchomoÊci (26 percent) and Pó∏noc NieruchomoÊci (19 percent). Katarzyna Piasecka

World’s narrowest house to be built in Warsaw

COURTESY OF CENTRALA.NET

Goodman expands Kraków project Industrial space provider Goodman has launched construction on a second building in its Kraków Airport Logistics Centre development in Ma∏opolskie voivodship. The 22,500 sqm facility has already been 75% leased out, with Valeo Service Eastern Europe having taken up 16,700 sqm of warehouse and 700 sqm of office space in the scheme. ●

JULY 11-24, 2011

COURTESY OF WIKIMEDIA COMMONS

Panattoni builds two new warehouses

COURTESY OF WIKIMEDIA COMMONS

The building will be only 92-152 cm wide and 12 m long

Warsaw could soon see the construction of what will arguably be the narrowest house in the world. Designed by architect Jakub Szcz´sny and tucked between a pre-war tenement bloc and a Communist-era tower bloc in the capital’s Wola district, the structure would be just 92-152 centimeters wide and 12 meters long. The project will include all the basic amenities found in regular homes, such as a bedroom, bathroom and small cooking area. However, as the dimensions of the house do not conform to the norms spelled out in Polish construction and fire protection regulations, it will not serve as a place of per-

manent residence, but rather as an artistic installation. The idea is that people representing various fields of art and culture could reside and work in the property for some time. The first occupier of the house, which will be located near the place where a bridge linked two parts of Warsaw’s Jewish ghetto during World War II, will be Etgar Keret, an Israeli writer of Polish origin whose parents met in Warsaw. The planned development is being realized by the Polish Modern Art Foundation (Fundacja Polskiej Sztuki Nowoczesnej) and is scheduled for completion in mid-November. Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

JULY 11-24, 2011

www.wbj.pl

Investment land

The state railway plans a raft of private investments around some of the capital’s largest rail stops Several of Warsaw’s train stations could be getting a serious facelift over the next few years. Polish State Railways (PKP) and international real estate investor and developer HB Reavis last month inked a deal for the development of a new Warszawa Zachodnia (Warsaw West) railway station in the capital. A complex of seven office buildings totaling some 54,000 sqm of space will be built alongside the rail facility as part of the development. The agreement could mark the beginning of major changes in the neglected neighborhood, in which PKP also owns other plots that could potentially lend themselves to large real estate investments, Pawe∏ Olczyk, the PKP board member responsible for the management of the company’s properties, told Lokale Immobilia. The company hopes Warsaw City Hall will enact a zoning plan for the area located just north of the station, which

could facilitate further investment there. For the time being, PKP is considering moving its own headquarters to one of the office buildings planned at Warszawa Zachodnia. If this comes to fruition, PKP would have its current headquarters demolished and re-developed.

The central dilemma The company is already thinking of having plots developed at several other major train stations in Warsaw. The capital’s iconic – and some say hideous – Warszawa Centralna (Warsaw Central) building poses a major dilemma: it could be demolished and replaced, but that would likely lead to vocal protests from those who see the station as a valuable piece of modernist architecture. “Half of the public would like Warszawa Centralna to go, while the other half would rather have it preserved, with the latter group usually being much louder and better heard in the media,” Mr Olczyk said. So at this moment the most likely scenario is that the building will stay and that two new structures will be devel-

oped on the parking lots which currently surround it. PKP is planning to announce an international architectural competition for the design of the planned development. This could make the plot more attractive for potential development partners. Still, it will take some time before construction starts, Mr Olczyk admitted, since the investment will have to be synchronized with the planned renovation of the railway infrastructure beneath it. Moreover, if a developer were to take over the land, new legislation would be needed to allow for separate ownership of the land itself and of what is above and below it. Under Polish law, the owner of a piece of real estate owns everything above and below (to a certain height and depth), meaning PKP cannot currently sell land located above real estate it owns underground, where some train tracks and platforms are located. Much less problematic should be the development of three plots located near Warszawa Centralna that PKP plans to sell later this year and

COURTESY OF WIKIMEDIA COMMONS

PKP looks to revamp Warsaw train stations

Public opinion is divided over what should become of Warszawa Centralna which could house high-rise schemes in the near future.

Attractive location For its part, Warszawa Wschodnia (Warsaw East), is currently being revamped. New schemes could, in the future, be developed on neighboring land on ul. Kijowska and ul. Lubelska. The area is becoming increasingly attractive due to Euro 2012-related investments and the ongoing construction of Warsaw’s second subway line. PKP, which owns a number of narrow plots in the neigh-

Property-related stocks Security

Closing price on July 7

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

90.50

-1.09

83.80

109.20

2.26

25,530,098

2,310.47

CELTIC

20.00

-2.44

17.00

60.55

N/A

34,068,252

681.37

DOMDEV

48.99

-0.02

38.52

50.80

11.47

24,560,222

1,203.21

ECHO

5.15

4.04

4.25

5.55

22.33

420,000,000

2,163.00

ELBUDOWA

165.00

2.17

149.00

188.40

-2.94

4,747,608

783.36

ENERGOPLD

3.90

4.56

3.57

4.10

-3.94

70,972,001

276.79

ERBUD

30.47

3.29

24.95

61.00

-39.04

12,602,711

384.00

GANT

11.44

-3.05

11.44

23.38

-45.45

20,499,953

234.52

GTC

17.39

-6.51

17.11

24.98

-24.39

219,372,990

3,814.90

HBPOLSKA

2.11

-7.05

2.02

3.90

-33.23

210,558,445

444.28

JWCONSTR

14.98

-1.45

13.50

18.35

-6.61

54,073,280

810.02

LCCORP

1.38

0.00

1.35

1.72

-6.12

447,558,311

617.63

MARVIPOL

9.85

1.03

7.40

16.18

-38.44

36,923,400

363.70

MIRBUD

3.86

0.26

2.89

4.75

33.10

75,000,000

289.50

MOSTALWAR

31.39

-0.48

29.05

69.40

-51.11

20,000,000

627.80

MOSTALZAB

2.65

0.38

2.54

3.82

-24.72

149,130,538

395.20

ORCOGROUP

31.50

2.24

19.20

40.00

64.92

14,053,866

442.70

PBG

150.80

8.88

134.70

252.00

-27.50

14,295,000

2,155.69

PLAZACNTR

3.95

-2.23

3.70

5.59

-21.00

296,738,962

1,172.12

POLAQUA

18.70

2.19

16.10

20.60

16.88

27,500,100

514.25

POLIMEXMS

3.52

9.32

2.91

4.84

-22.98

521,154,076

1,834.46

POLNORD

26.50

3.31

25.00

39.41

-20.18

23,798,439

630.66

RANKPROGR

12.30

-1.60

9.59

13.60

N/A

37,145,050

456.88

ROBYG

1.92

0.00

1.70

2.13

N/A

257,390,000

494.19

RONSON

1.39

-1.42

1.36

1.78

-17.26

272,360,000

378.58

TRAKCJA

3.10

6.90

2.49

4.97

-24.76

232,105,480

719.53

ULMA

80.90

2.47

70.00

88.00

15.16

5,255,632

425.18

UNIBEP

6.50

0.00

6.38

10.30

-19.75

33,927,184

220.53

WARIMPEX

8.50

3.66

7.77

10.89

9.11

54,000,000

459.00

ZUE

10.25

-0.39

9.91

15.14

N/A

22,000,000

225.50

borhood, also hopes to acquire adjacent municipal land for development. The company is in talks with Warsaw City Hall about the possibility of swapping land it needs for its own development projects with land the city could use for purposes such as road construction.

A well-connected hotel Last but not least, the Warszawa Gdaƒska railway station on the border of the capital’s central and ˚oliborz districts will likely get a new station building as well as commercial space.

Warszawa Gdaƒska may see less footfall than the three largest train stations in Warsaw, but it has direct access to a subway station, as well as several bus and tram lines. The new station building, Mr Olczyk explained, would be moved slightly to the west of the existing structure which, sitting just next to the Dworzec Gdaƒski subway station, would in turn give way to a commercial project, most likely a hotel. “This would be one of the best-connected hotels in Warsaw,” Mr Olczyk said. Adam Zdrodowski

BUSINESS ENVIRONMENT

www.wbj.pl

Interest rate unchanged

Production slows, jobs uncertain Poland’s manufacturing PMI shrunk in June to 51.2 points from 52.6 points in May, marking the most significant decline since September 2009. The rate of growth in June disappointed as the number of new orders declined. This could indicate that economic growth is about to slow down. According to experts at PKPP Lewiatan, the outlook for the Polish job market is uncertain. ●

Natural gas

Economy

Gas prices set to rise

Public finance deficit to shrink over next four years: official The 2011 deficit is set to come in at 5.6 percent of GDP – far lower than the 6.5 percent forecast

SHUTTERSTOCK

As expected, Poland’s Monetary Policy Council left interest rates unchanged in early July. The decision means that the National Bank of Poland’s main reference rate will remain at 4.5%. Inflation rose to 5% year-on-year in May as food and fuel prices increased rapidly. However, central bankers indicated after June’s rate hike that they would pause their cycle of monetary policy tightening, to see if inflation began to decline.

JULY 11-24, 2011

Gas prices will increase by an average of 5-7 percent for individual consumers

Regulators have approved PGNiG’s tariff-hike request, citing the high cost of oil Individual consumers and industry players will now have to pay more for gas thanks to the Energy Regulatory Office’s (URE) recent decision to approve gas-delivery monopolist PGNIG’s tariff-hike request. The decision, set to be implemented in mid-July, means household customers will see an average price increase of 5-7 percent. Stateowned PGNiG had asked for prices to be increased by around 10 percent. PGNiG imports two-thirds of the natural gas used by Poland from Russia. It pays

market prices but must sell the product in Poland at prices set by the regulator. The URE usually doesn’t raise prices by as much as PGNiG says is needed, and so the gas monopolist often feels pressed by the price of imports. The introduction of the new tariffs is a consequence of the significant increase in oil prices globally, due to the unstable situation in North African countries, both PGNiG and the URE said. Oil is one of the main raw materials used in the extraction and processing of natural gas. The higher prices are likely to mean a drop in profitability for the chemical sector, which uses 2.5 billion square meters of gas a year. “In many cases, gas accounts

for 40-60 percent of production costs. The current increases may decrease profitability by up to three percent,” Jerzy Majchrzak, head of the Polish Chamber of Chemical Industry, told daily Parkiet. The price increases will remain in effect until the end of the year, at which point PGNiG has the right to request another round of price hikes. It expects to do so, since the price of buying Russian gas has risen recently, the company said in a statement. Higher tariffs will enable PGNiG to continue its costly program of exploration of new gas deposits in Poland, including shale gas, which it hopes will lead to more stable gas prices in the future. Barbara G´dek

Deputy Finance Minister Ludwik Kotecki said Poland is on track to slash its budget deficit to 5.6 percent of GDP, a fall compared to the 2010 figure of 7.9 percent. “Our forecast of the public finance sector deficit in 2011 at the level of 5.6 percent of GDP is a safe figure which is not threatened in any way,” Mr Kotecki told the Polish Press Agency (PAP). Earlier this year, Poland had forecast its public finance sector debt at 6.5 percent of GDP. In late June, the govern-

ment announced that the deficit would come in some z∏.10.2 billion, or 25 percent, smaller than had been planned. At the end of last year, Poland’s public debt load had ballooned to z∏.747.91 billion or 52.8 percent of GDP. Mr Kotecki added that the current problems plaguing the euro zone would not damage the z∏oty. “There are no concerns about the condition of the Polish currency or the impact of euro-zone problems on the z∏oty,” Mr Kotecki said. As the euro has weakened in the wake of the Greek financial crisis, the z∏oty has also softened, as investors flock to currencies perceived as “less risky,” such as the US dollar. Andrew Kureth

Bankruptcies on the wane From the beginning of the year, 307 firms went bankrupt in Poland. That’s a 14 percent decrease from last year, when 358 firms went bankrupt over the same period, according to Dziennik Gazeta Prawna. The daily cited the latest report by

economic intelligence agency Dun & Bradstreet. Another business information provider, Coface, has this year’s number at 333 bankruptcies so far. Both reports show a downward trend in the number of RA firms going bust.

Media patronage AmCham’s 4th of July Picnic

COURTESY OF AMCHAM

AmCham CEO Forum: “Encouraging innovation – the CEO’s perspective”

the InterContinental Hotel Warszawa, which provided the desserts. The event’s Platinum Sponsor was McDonald’s; the Gold Sponsors were Boeing, FedEx and KPMG. ● COURTESY OF AMCHAM

On July 2, the American Chamber of Commerce in Poland held its annual picnic celebrating the United States’ independence day at Królikarnia Palace and the surrounding Arkadia park. Around 600 people attended the festivities. Famous guests included Henryka Bochniarz, the president of the Polish Confederation of Private Employers Lewiatan; Olympian Robert Korzeniowski, women’s rights activist Magdalena Âroda, and former national soccer team player Dariusz Dziekanowski. The United States Marine Corps presented the colors, a raffle was held and the younger guests enjoyed a play area where they were able to have their faces painted. A buffet was provided by the Sheraton Warsaw Hotel; McDonald’s Polska also helped with the catering, along with Sofitel Warsaw Victoria and

COURTESY OF AMCHAM

From left to right: Bogus∏aw Ku∏akowski, Qualcomm Poland; Olga GrygierSiddons, PwC; Micha∏ Kobosko, Point Group Business Unit

The American Chamber of Commerce in Poland held a CEO forum in mid-June, under the theme: “Encouraging innovation – the CEO’s perspective.” The event’s major presentation was based on PricewaterhouseCoopers’ 14th Annual Global CEO Survey Main Report, and focused on the role of innovation and innovative culture in business

organizations. The three panelists were Olga Grygier-Siddons from PricewaterhouseCoopers, Bogus∏aw Ku∏akowski from Qualcomm Poland and Micha∏ Kobosko from Point Group Business Unit. The CEO Forum was sponsored by PricewaterhouseCoopers and Mamaison Le Regina Hotel. ●

MARKETS

JULY 11-24, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

S&P500

12,719.49 (July 7 close)

2,872.66 (July 7 close)

2.46% (for the week)

3.57% (for the week)

FTSE100

1,353.22 (July 7 close) 2.47% (for the week)

DAX

Mixed data, market volatility

NIKKEI225

6,054.50 (July 7 close)

7,471.44 (July 7 close)

10,071.14 (July 7 close)

1.83% (for the week)

1.29% (for the week)

2.60% (for the week)

CHANGE: 7.23%

CHANGE: 7.32%

CHANGE: 5.01%

CHANGE: 2.62%

CHANGE: 7.14%

CHANGE: -2.71%

(year to July 7)

52-week high:12,928.50

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 9,915.73

52-week low: 2,099.29

52-week low: 1,039.70

52-week low: 5,014.80

52-week low: 5,833.51

52-week low: 8,227.63

The week of July 4 began with little activity on the Warsaw Stock Exchange, since the US markets were closed for the Independence Day holiday. On Monday, the WIG and WIG20 recorded slight losses, showing a lack of strength and confidence. Already on Tuesday, however, the main Polish indices saw some modest gains, despite the fact that most of their European peers finished the day in the red as investors showed disappointment with worse-thanexpected May retail sales figures for the euro zone. More adverse macroeconomic data in Europe and the downgrading by Moody’s of Portugal’s credit rating to Ba2 continued to draw European indices south on Wednesday, with some of the biggest losers being indices in the PIIGS

Major indices WIG

49,057.05 (July 7 close)

WIG20

2,820.08 (July 7 close)

07.07

06.07

05.07

04.07

01.07

30.06

29.06

28.06

27.06

24.06

22.06

21.06

20.06

07.07

06.07

05.07

04.07

01.07

30.06

29.06

28.06

27.06

2,700

24.06

47,000

22.06

2,740 21.06

47,600

20.06

2,780

17.06

48,200

16.06

2,820

15.06

48,800

14.06

2,860

13.06

49,400

10.06

2,900

09.06

50,000

17.06

52-week low: 2,329.15

16.06

Change year to July 7: 2.37%

15.06

52-week low: 40,273.99

14.06

52-week high: 2,932.62

Change year to July 7: 2.95%

13.06

Change for the week: 0.64%

10.06

52-week high: 50,371.74

09.06

Change for the week:1.33%

Top 5 ATLANTAPL IZOLACJA BNPPL WISTIL LUBAWA

Closing 16.30 1.35 126.90 18.95 1.48

% change (week) 52-week high 25.38 16.30 23.85 2.08 16.42 157.00 14.85 30.90 10.45 1.73

52-week low 6.96 1.09 109.00 16.01 1.00

Top 5 PGNIG POLIMEXMS PBG PEKAO BRE

Closing 4.64 3.52 150.8 169.7 338.00

% change (week) 10.21 9.32 8.88 4.62 3.71

52-week high 4.64 4.84 252.00 196.50 349.00

52-week low 3.35 2.91 134.70 153.00 242.20

Bottom 5 BEST EMCINSMED ATLASEST WIKANA SKYLINE

Closing 5.65 10.51 2.32 0.10 3.40

% change (week) -19.97 -17.89 -17.73 -16.67 -16.46

52-week low 4.60 10.51 2.32 0.10 3.38

Bottom 5 GTC KGHM TPSA PGE CYFRPOLSAT

Closing 17.39 191.00 16.30 23.5 16.38

% change (week) -6.51 -3.05 -2.16 -2.00 -0.73

52-week high 24.98 198.40 19.01 24.90 17.35

52-week low 17.11 93.85 15.20 21.15 13.36

52-week high 16.50 23.00 4.57 0.13 7.21

sWIG80

Change for the week: 1.02%

52-week high: 2,987.72

Change for the week: -0.85%

52-week high: 12,932.00

Change year to July 7: 2.56%

52-week low: 2,398.21

Change year to July 7: -2.17%

52-week low: 11,161.00

NewConnect

54.29 (July 7 close)

WIG-Banki

6,935.58 (July 7 close)

07.07

06.07

05.07

04.07

01.07

30.06

29.06

28.06

27.06

24.06

22.06

21.06

20.06

07.07

06.07

05.07

04.07

01.07

30.06

29.06

28.06

27.06

24.06

6,700

22.06

54.0

21.06

6,800 20.06

54.8

17.06

6,900

16.06

55.6

15.06

7,000

14.06

56.4

13.06

7,100

10.06

57.2

09.06

7,200

17.06

52-week low: 5,830.96

16.06

Change year to July 7: -0.38%

15.06

52-week low: 54.51

14.06

52-week high: 7,387.49

Change year to July 7: -14.38%

13.06

Change for the week: 1.97%

10.06

52-week high: 64.39

09.06

Change for the week: -1.06%

58.0

Despite the summer vacation period, the last two weeks have brought important news from Greece that has increased currency volatility. The Greek parliament approved a drastic savings plan, which caused widespread protests in the country. This calmed investors for some time and brought optimism back, although the S&P ratings agency stated that it would treat any rollover of the Greek debt as a technical bankruptcy. The optimistic mood held until Moody’s announced its ratings cut of Portuguese debt to junk status. Many European officials disagreed, attacking Moody’s for the move, but the damage had already been done.

07.07

06.07

05.07

04.07

01.07

30.06

29.06

28.06

27.06

24.06

22.06

21.06

20.06

17.06

16.06

15.06

14.06

13.06

10.06

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

09.06

07.07

06.07

05.07

04.07

01.07

30.06

29.06

28.06

27.06

11,800

24.06

2,800

22.06

11,940 21.06

2,840 20.06

12,080

17.06

2,880

16.06

12,220

15.06

2,920

14.06

12,360

13.06

2,960

10.06

12,500

09.06

3,000

Europe news moves markets

11,982.97 (July 7 close)

SOURCE: WSE

2,879.54 (July 7 close)

countries, Poland’s main WIG and blue-chip WIG20 indices followed suit and fell by 0.78 percent and 0.75 percent respectively. On Thursday, better macroeconomic data coming in from both Europe and the US finally brought about an improvement in moods in the global markets, with indices on both sides of the Atlantic recording decent rises. In Warsaw, the WIG rose by 1.78 percent while the WIG20 gained 0.99 percent. That optimism did not last long, as the end of the week saw the publication of much worse-than-expected unemployment data from the US, which immediately led investors to sell shares and other risk-averse assets. In the end, the WIG and the WIG20 lost 0.73 percent and 0.94 percent resAZ pectively.

Currency report

Other indices mWIG40

In the middle of all this turmoil, the European Central Bank hiked interest rates in the euro zone by 25bp to 1.5 percent, as expected. At a press conference after the decision was announced, ECB president Jean-Claude Trichet said that while the PIIGS countries were in a difficult economic situation, the bank’s main goal was to keep inflation low, and that it would therefore act accordingly. At the end of June and start of July, the EUR/USD climbed all the way to $1.45 to finish at $1.43 on July 7. The z∏oty rebounded after the last period of depreciation and finished the week at z∏.3.95 against the euro, z∏.2.76 against the US dollar, and z∏.3.29 against the Swiss franc.●

currency rates 3.3813 08.07

SOURCE: NBP

3.4107

05.07

07.07

3.3627

04.07

3.4001

3.3806

3.3705

01.07

0.0985

0.0985 08.07

3.0

06.07

PLN-100JPY

3.5

07.07

0.0984 06.07

0.0977

0.0978 05.07

0.0979 0.09

01.07

3.2397 08.07

3.2867 07.07

3.2635 06.07

3.2288 05.07

04.07 3.2002

3.0

01.07

3.2231

4.3922 08.07

07.07

06.07

05.07

04.07

01.07

08.07

07.07

06.07

05.07

04.07

01.07

2.5

PLN-RUB

0.10

04.07

PLN-CHF

3.5

4.4115

4.4063

4.3818

4.3679

2.7505

4.3797

PLN-GBP

2.7597

2.7531

2.7266

2.7273

3.9345 08.07

3.9498

2.7156

PLN-USD

3.0

07.07

3.9531 06.07

3.9487 05.07

04.07

3.9626 01.07

3.8

3.9463

PLN-EUR

4.0

THE LIST

www.wbj.pl

JULY 11-24, 2011

Construction & Real Estate

Property and Facility Management Firms

Rank

Ranked by office space managed

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

Total area of Number of office Area of all Number of all office buildings buildings buildings buildings managed (sqm) / managed / managed (sqm) / managed / Owned by Owned by Owned by Owned by company / company / company / company / Not owned by Not owned by Not owned by Not owned by company company company company

Names and locations of buildings managed

www.bookoflists.pl

Services offered

Selected clients

Number of employees/ Year founded

Ownership: Polish / Foreign

Top local executive / Title

Yann Gontard

1 Sodexo Polska Sp. z o.o.

1,234,873 1,234,873

66 66

3,982,074 3,982,074

198 198

Full real estate service; technical maintenance; administration North Gate (Warsaw); Company support; reception and internal House II - Microsoft (Warsaw); Globis mail Premiumred Polska; The Supreme outsourcing; cleaning; project Court; (Wroc∏aw); Metropolitan (Warsaw); management; Globe Trade Centre; ProLogis security; employee Altus (Katowice) restaurants; subcontractor management

1,136 1993

None Sodexo Group - 100%

Dalkia Energy & Technical Services Sp. z o.o. ul. Âwierczewska 18, 60-321 Poznaƒ 2 61 861-3300/61 861-3481 dets@dalkia.com.pl www.dalkia.pl

1,000,000 1,000,000

40 40

1,800,000 1,800,000

65 65

estate service; technical ABB (Aleksandrów ¸ódzki); Dell (¸ódê); Full real maintenance; energy Tulipan Park (Stryków; Komorniki; management; investment Gliwice; Plewiska) supervision; heating services

Neinver; ABB; BPH TFI; SEGRO; SEGECE

5,200 2004

Dalkia Polska - 100% None

Knight Frank Sp. z o.o. ul. Mysia 5, 00-496 Warsaw 3 22 596-5050/22 596-5051 office@pl.knightfrank.com www.knightfrank.com.pl

815,000 815,000

56 56

905,000 905,000

61 61

Trinity Park III (Warsaw); Arkoƒska Business Park (Gdaƒsk); Altus (Katowice); Red Tower (¸ódê); Andersia Tower (Poznaƒ)

Full real estate service; development costs analysis; contract renegotiation with subcontractors; tenders

Deka Immobilien; Arka BZWBK Fundusz NieruchomoÊci; AIB PPM; SEB Investment; Invesco Real Estate

WND 1995

Hochtief Facility Management Polska Sp. z o.o. ul. Powsiƒska 64A, 02-903 Warsaw 4 22 858-8525/22 842-0473 handlowy@hochtief.com.pl www.hochtief-fm.pl

766,078 766,078

46 46

2,000,000 2,000,000

77 77

Horizon Plaza (Warsaw); Faurecia (Wa∏brzych); Rondo 1 (Warsaw); Baltic Business Center (Gdynia); Diamond Business Park (Gliwice)

Full real estate service

Knight Frank; Cushman & Wakefield; Colliers International Poland; AIG/Lincoln; King Sturge

293 1998

None Hochtief Facility Management - 100%

Artur Tomczyk

Przedsi´biorstwo Zarzàdzania NieruchomoÊciami Sp. z o.o. ul. Niek∏aƒska 35, 03-924 Warsaw 5 22 518-8800/22 518-8802 sekretariat@pzn.com.pl www.pzn.com.pl

766,000 766,000

WND WND

811,000 811,000

WND WND

Bank Pekao headquartes (Warsaw); office building on ul. Piotrkowska (¸ódê); conference and training center (Serock); BRE Bank headquarters (Aleksandrów ¸ódzki; Bydgoszcz)

Tenant search; contracts management; technical maintenance; cleaning; security; building preparation for sale; real estate appraisals; obligatory building check-ups

Bank Pekao; Bank Zachodni WBK; Bank PKO BP; Polbank; Millennium Bank

985 1996

Management - 100% None

Jerzy Zalega

Cushman & Wakefield Polska Sp. z o.o. Pl. Pi∏sudskiego 1, 00-078 Warsaw 6 22 820-2020/22 820-2021 info.poland@eur.cushwake.com www.cushmanwakefield.com

480,000 480,000

17 17

500,000 500,000

18 18

Skylight (Warsaw); Metropolitan (Warsaw); Focus (Warsaw); Marynarska Business Park (Warsaw); Saski Crescent (Warsaw)

Property, asset and facility management

Aberdeen Immobilien Kapitalanlagegesellschaft; Europolis Real Estate Asset Management; ING Real Estate; Ghelamco; Rezydent

123 1991

None Cushman & Wakefield European Holding - WND%

Richard Petersen

Cofely Services Sp. z o.o. ul. Kijowska 1, 03-738 Warsaw 7 22 518-0186 /22 518-0189 marcin.kwasiborski@cofely.pl www.cofely.pl

407,000 407,000

21 21

821,500 821,500

45 45

Park Post´pu (Warsaw); Marynarska Point (Warsaw); Infosys d. Philips (¸ódê); Blue Tower (Warsaw); Astra Park (Kielce)

Technical maintenance; energy managemant; property management; cleaning; security

Echo; KBC; BRE Bank; Skanska; Arka BZ WBK

160 1997

None GDF Suez Energie Services WND%

Jan Woêniak

HSG Zander Polska Sp. z o.o. (formely M+W Zander FM Polska Sp. z o.o. and HSG FM Polska Sp. z o.o.) 8 ul. Pu∏awska 435A, 02-801 Warsaw 22 579-3232/22 579-3201 info@hsgzander.pl www.hsgzander.pl

395,443 395,443

32 32

1,052,808 1,052,808

51 51

Technical maintenance; energy 3M (Wroc∏aw); Galeria Sanowa Motor Polska; Colgatemanagement; feasibility analysis; Volkswagen (Wa∏brzych); Platinum Towers Palmolive Manufacturing Poland; security; cleaning; maintenance of 3M (Warsaw); Deloitte House (Warsaw); outdoor Poland; IBM Polska; Mercedesareas ; production process Andersia Tower (Poznaƒ) Benz Polska support; technical audits

199 1999

None Bilfinger Berger - 100%

Thorsten Brudigam

Colliers International REMS Sp. z o.o. Pl. Pi∏sudskiego 3, 00-078 Warsaw 9 22 331-7800/22 331-7801 warsaw@colliers.com www.colliers.com

310,000 310,000

27 27

744,500 744,500

37 37

Horizon Plaza (Warsaw); Millenium Park (Warsaw); Deloitte House (Warsaw); Grunwaldzki Center (Wroc∏aw); Marynarska Point (Warsaw)

Full real estate service; asset management

Pramerica Real Estate Investors; UBS Real Estate Kapitalanlagegesellschaft mbH; Standard Life Investments; Union Investments Real Estate; RREEF Investment

42 2007

WND - 33% CMN - 67%

DTZ ul. Z∏ota 59, 00-120 Warsaw 10 22 222-3000/22 222-3001 info@dtz.pl www.dtz.com/pl

308,000 308,000

11 11

1,600,000 1,600,000

38 38

Sarni Stok (Bielsko Bia∏a); City Point (Warsaw); Trinity Point I and II (Warsaw); Tulipan House (Warsaw)

Property and asset management; marketing; corporate accounting; project management; commercialization and recommercialization of buildings

Charter Hall; Valad; ING; Credit Suisse Asset Management; Balmain Asset Management

200 1994

WND DTZ Holdings - WND%

Patrick Delcol

General Property Sp. z o.o. ul. Powsiƒska 62, 02-903 Warsaw 11 22 642-3285/22 642-3395 info@generalproperty.pl www.generalproperty.pl

183,739 183,739

7 7

1,235,160 1,235,160

36 36

WND

Facility management

WND

86 2004

Tomasz Buczyƒski - 50%; Piotr Górnicki - 50% None

Piotr Górnicki

Open Property Management Sp. z o.o. ul. Marsa 56A, 04-242 Warsaw 12 22 460-4545/22 460-4546 office@opm-fm.pl www.opm-fm.pl

170,000 WND WND

42 WND WND

290,000 WND WND

48 WND WND

ABB; Fortum Heat and Power; Bankowy Fundusz Leasingowy; Renhold; Enersys

45 2006

Impel - 100% None

Strabag Property and Facility Services Sp. z o.o. ul. Koszykowa 54, 00-675 Warsaw 13 22 583-4400/22 583-4401 info-spfs@strabag.pl www.strabag-pfs.pl

145,000 145,000

10 10

460,000 460,000

35 3,535

Ilmet (Warsaw); Polonia Palace Hotel (Warsaw); Aktyn (Warsaw); IPC (Warsaw); University Business Park (¸ódê)

Full real estate service; technical maintenance; cleaning; maintenance of outdoor areas; security; technical and infrastructural consulting

UBS; Hotele Warszawskie Syrena; Raben; Polska Telefonia Cyfrowa; S+B Gruppe

142 1999

None Strabag Facility Management - WND%

Pawe∏ Szymczak

Est-On Property Echo-17 Sp. z o.o., Sp.k. Al. SolidarnoÊci 36, 25-323 Kielce 14 41 333-3606/41 333-2666 biuro@est-on.pl www.est-on.pl

139,200 126,700 12,500

10 9 1

394,500 382,000 12,500

22 21 1

Pasa˝ Grunwaldzki (Wroc∏aw); Galaxy (Szczecin); Galeria Echo (Kielce); PHS (Szczecin); Park Post´pu (Warsaw)

WND

Echo Investment; Pride Hold

48 1998

Echo Investment - 99% None

Piotr Gromniak

Al. Jerozolimskie 172, 02-486 Warsaw 22 338-9600/22 338-9601 info.fms.pl@sodexo.com www.sodexo.pl

Property management; administration; space ABB (Warsaw, Wroc∏aw); Fortum Heat commercialization; utilities and Power (Cz´stochowa, Wroc∏aw, management; engineering Wojkowice, Âwiebodzice) services; investment advisory; due diligence; technical diligence; energy audits

General Director

Alexandre Farion; Krzysztof Skowroƒski President; Board Member

None Monika D´bska-Pastakia; Rathburn Holdings BV K.F. & Joseph Borowski R. Limited - WND% President; Vicepresident

President

Managing Director

General Director

President

Hadley Dean Managing Partner

President

Józef Biegaj; Dariusz Tahery President; Vicepresident

Proxy

President

THE LIST

Rank

JULY 11-24, 2011

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

www.wbj.pl

Names and locations of buildings managed

Services offered

Selected clients

Number of employees/ Year founded

Ownership: Polish / Foreign

Top local executive / Title

WND

WND 1997

WND

Brian Patterson

Balmain; Haitman; Catalyst Capital; Lewandpol

80 2000

None King Sturge - 100%

Jason Sharman

Rafa∏ Krzemieƒ

AIG/Lincoln Polska Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw 15 22 564-5000/22 564-5085 office.warsaw@aiglincoln.com.pl www.aiglincoln.com.pl

134,500 WND WND

3 WND WND

435,500 WND WND

12 3 WND

Riverside Park (Warsaw); Diamond Business Park (Warsaw); Diamond Business Park (Piaseczno); ˚eraƒ Park (Warsaw); Grzybowska Park (Warsaw); Empark Mokotów Business Park (Warsaw)

King Sturge Sp. z o.o. Sp. k. Al. Jana Paw∏a II 19, 00-854 Warsaw 16 22 256-0800/22 256-0801 contactpoland@kingsturge.com www.kingsturge.pl

130,000 WND WND

14 WND WND

510,000 WND WND

51 WND WND

Centrum Nauki Kopernik; Galeria Przymorze; Galeria Handlowa Mazovia; Asset management; accounting Galeria Handlowa Jeziorak

Dipservice w Warszawie SA ul. Âwi´tokrzyska 36, 00-116 Warsaw 17 22 526-3107/22 620-9960 sekretariat@dipservice.pl www.dipservice.pl

115,300 115,300 -

83 83 -

131,600 131,600 -

104 104 -

WND

Administration; inspections; Sandvik; Lindt & Sprungli Polska, maintenance; cleaning; 24/7 TVN; Aegon Towarzystwo technical services and supervision Ubezpieczeƒ na ˚ycie; EDF Polska

256 1962

Treasury - 100% None

Mahler Property Services Sp. z o.o. Al. Jerozolimskie 181, 02-222 Warsaw 18 22 608-4560/22 608-4562 mahler@mahler.pl www.mahlerproject.com

96,983 WND WND

5 WND WND

150,051 WND WND

5 WND WND

WND

Full range of developer services; facilities renting and administration

36 1992

None Mahler - 50%; CA Immo International - 50%

NAI Estate Fellows Sp. z o.o., Sp. k. ul. Pankiewicza 3, 00-696 Warsaw 19 22 379-7300/22 379-7301 biuro@estatefellows.com www.estatefellows.com

92,000 WND 92,000

13 WND 13

212,000 212,000

18 WND 18

Renaissance Tower (Warsaw); Eureka Business Park (Warsaw); Viking House (Warsaw); Centrum Biznesu (¸ódê); Orion (¸ódê)

20 2008

WND

JJM Sp. z o.o. ul. Ciechociƒska 26, 02-924 Warsaw 20 22 646-1883 /22 842-6125 jjm@jjm.com.pl www.jjm.com.pl

78,370 78,370

3 3

106,190 106,190

6 6

Office building on ul. Cha∏ubiƒskiego 8 Property management; (Warsaw); Polservice (Warsaw); administration including renting Tower Service; Corktree Fprop; Housing community on and security supervision; technical Polservice; Private owners; Orbis ul. Bluszczaƒska 73 (Warsaw); maintenance, cleaning and Hotel Holiday Inn; Bank Ochrony Holiday Inn Hotel (Warsaw); landscape maintenance; Ârodowiska; Bank Handlowy BOÂ (Warsaw) investment advisory

125 1991

Jerzy Poncyljusz - 50%; Marek Poncyljusz - 50% None

Marek Poncyljusz

Savills Sp. z o.o. ul. Marsza∏kowska 111, 00-102 Warsaw 21 22 330-0630/22 330-0631 info@savills.pl www.savills.pl

64,763 64,763

12 WND WND

WND WND WND

12 WND WND

Aquarius (Warsaw); Mokotów Plaza (Warsaw); Wola Plaza 1 (Warsaw); City Park (Poznaƒ); Galeria Fordon (Bydgoszcz)

WND

Tritax Polska, Celic Asset Management; Azora International Management

40 2004

WND Savills Overseas Holding WND%

Brian Burgess

Platan Group Sp. z o.o. ul. Poleczki 23, 02-822 Warsaw 22 22 545-0245/22 545-0246 platangroup@platangroup.com.pl www.platangroup.com.pl

53,009 53,009 -

6 6 -

101,116 101,116 -

6 6 -

Dom Dochodowy (Warsaw); Nautlus (Warsaw); Platan Park (Warsaw)

Security; cleaning

WND

49 1995

None Aartsengel Tom Holding 100%

Karolina Kaim

WeCare Sp. z o.o. Al. Jerozolimskie 212A, 02-486 Warsaw 23 22 571-4477/22 571-4454 wecare@wecare.pl www.wecare.pl

40,064 25,341 14,723

6 4 2

90,064 75,341 14,723

7 5 2

Batory Office Building I and II (Warsaw); Flanders Business Park A and B (Warsaw); Jerozolimskie Business Park (Warsaw)

Cost management; contract management; technical maintenance; telecom services; tenant relations management

Goodyear Dunlop Tires Polska; Yamaha; Urzàd Lotnictwa Cywilnego; PGNiG; Bauer Woltbild Media

WND 2001

WND

Avestus Real Estate Sp. z o.o. ul. Nowogrodzka 47A, 00-695 Warsaw 24 22 520-6000/22 520-6001 marketing@avestusrealestate.com www.avestusrealestate.com

36,300 36,300

2 2

79,300 79,300

3 3

International Business Center A and B (Warsaw)

WND

GLL Real Estate Partners; DEKA Immobilien

WND 1994

None Avestus Capital Partners 100%

Agencja Inwestycyjna Corp - SA Pl. Bankowy 2, 00-095 Warsaw 25 22 635-3500/22 831-0645 corp@corp-sa.pl www.corp-sa.pl

33,155 WND 33,155

2 WND 2

43,060 WND 43,060

3 WND 3

B∏´kitny Wie˝owiec (Warsaw)

Full real estate service

Pekao; PKO BP; Warsaw City Hall; Peugeot Polska; Gefco Polska

WND 1994

First Property Poland - 1.5%; Ross - 65.4%; PKO BP 22.3%; Warsaw City Hall10%; Scaup - 0.7% None

Gerente - Serwis NieruchomoÊci Sp. z o.o. ul. Batorego 20, 02-591 Warsaw 26 22 658-0514/22 658-0514 info@gerente.pl www.gerente.pl

23,102 23,102

10 10

29,102 29,102

13 13

financial services; Harsco Infrastructure; Fenix Capital; Harsco Infrastructure (Baniocha); Fenix Administration; technical maintenance; Fenix Opportunities; Collins Capital (Warsaw); Fenix Opportunities cleaning; lease management; concierge Property; Centralny Zarzàd S∏u˝by (Warsaw); Collins Property (Warsaw) services Wi´ziennej

16 2009

Jerzy Kowalczyk - 25%; WND - 75% None

METRO Group Asset Management Sp. z o.o. Al. Krakowska 61, 02-183 Warsaw 27 22 500-0000/22 500-0118 info@metro-mam.pl www.metro-mam.pl

21,500 21,500

1 1

1,093,000 WND WND

457 WND WND

M1 Czeladê (Czeladê); M1 Kraków (Kraków); M1 Poznaƒ (Poznaƒ); Magnolia park (Wroc∏aw); Galeria Piastów (Legnica)

290 1996

None METRO Group - WND%

PBW Polska Sp. z o.o. ul. Górczewska 124, 01-460 Warsaw 22 533-4003/22 533-4004 www.pbw.pl

18,948 18,948

2 2

156,448 156,448

6 6

Atrium Tower (Warsaw); Klif Tower (Warsaw)

WND 1996

None WND -100%

Antoni Krzàta∏a

Atrium 21 Sp. z o.o. ul.Stefana Batorego 20, 02-591 Warsaw 29 22 825-9892/22 825-0440 info@atrium21.pl www.atrium21.pl

14,000 14,000

3 3

1,114,000 1,114,000

106 106

District Court (Warsaw)

85 1998

WND - 100% None

Piotr Kuligowski

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in November 2010. Number of employees and ownership structure are as of October 2010 unless stated otherwise. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

WND

Property management; controlling and reporting; operating costs and income analysis; buildings BPH TFI; BRE Bank; Catalyst Capital; administration and PZU; Altus TFI commercialization including technical support and interior design

Project development; construction management; leasing; property Makro C&C; Real; Praktiker; Media management; energy Markt; Rank Progress management

WND

AEW Europe

ZGN Warszawa - Ochota; 103 Administration; financial services residential communities in Warsaw

Managing Partner

Managing Director

Board President

Andrzej Miko∏ajczyk Director Asset Management

Rafa∏ Mateusiak Partner

President

Managing Director

President

Kamila Z´bik Managing Director

Bartosz Puzdrowski Country Manager

Tadeusz Szumowski President

Jerzy Kowalczyk President

Renata Kinde-Czy˝; Andreas Thamm Board Member; President

WND

President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

ARTS & CULTURE

www.wbj.pl

JULY 11-24, 2011

Music festival

Cuban spirit in Warsaw

A celebration of unconventional music

Buena Vista Social Club Sala Kongresowa Pl. Defilad 1 July 24, 6 pm

Roxy Festival Sowiƒski Park Amphitheater ul. Elekcyjna 17 July 15, 7 pm Mark Ronson, known for hits such as “Valerie,” opens this new addition to the festival circuit. The mission statement of the festival is to promote unconventional artists as well as to offer its audience an alternative to more prevalent commercial endeavors. ●

COURTESY OF WIKIMEDIA COMMONS

Recognized as a worldwide phenomenon, the energy-filled veterans that make up Cuban music ensemble the Buena Vista Social Club have toured successfully across the globe since Wim Wenders’ landmark film of the same name was released in the late 1990s. ● For more information and tickets log on to www.kongresowa.pl, www.ticketpro.pl

For more information and tickets, check in-store at EMPiK, Saturn, Media Markt, or log on to www.eventim.pl or www.ticketpro.pl

Concert

Mayall in comeback performance John Mayall Klub Stodo∏a ul. Batorego 10 July 13, 6 pm

Music festival

Samba on the banks of the Vistula Samba Festival La Playa Music Bar ul. Wybrze˝e Helskie 1/5 July 16, 7 pm This celebration of all that is samba includes performances, parties and workshops. The festival is the culmination of a long-running project by the Afro-Brazilian Foundation Center (Fundacja Centrum Kultury

COURTESY OF WIKIMEDIA COMMONS

Founder of John Mayall and the Bluesbreakers, Mayall has been an influential figure in the careers of many artists, including Eric Clapton. Regarded as the Godfather of British Blues, this comeback performance promises to be an event to remember. ● For more information log on to www.stodola.pl

Film’s new horizons 11th New Horizons International Film Festival Various locations around Wroc∏aw July 21-31

Poland. Offering a voice to visionary and alternative directors, the festival hosts around 430 feature and documentary films from over 50 countries. ●

This year's New Horizons will mark the 11th edition of the biggest film festival in

For the full festival program log on to www.nowehoryzonty.pl

COURTESY OF NEW HORIZONS INTERNATIONAL FILM FESTIVAL

Film festival

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl

COURTESY OF WIKIMEDIA COMMONS

Concert

Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

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

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

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl

Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Le Guern Gallery ul. Widok 8, www.leguern.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl

Museum of Independence Al. SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl

Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

Afro-Brazylijskiej) to promote the festive nature of Brazil. Entry is priced at z∏.20 with tickets available

at the door. ● For more information log on to www.sambafestival.pl

Content provided by the Warsaw Insider. For more information on culture and entertainment in Warsaw this month, pick up the July issue.

LAST WORD

JULY 11-24, 2011

www.wbj.pl

Tech Eye

How it happened we have no idea, but it seems we’ve acquired a reputation as an incorrigible man-pig, despite the fact that we’re always whistling to let the ladies know they’re appreciated. The situation has gotten so completely out of hand that our dear wife has stopped fetching us beer and Mum won’t do our laundry any more. Let it be said for the record – Techeye is no chauvinist. Why just last week, seeing a damsel imperiled by a mud puddle, we sprang into action, tossing the nearest dwarf straight

into that puddle, enabling the lovely young lady to saunter gorgeously on her way. Ok, yes, it turned out that the dwarf was also a woman. So what? Faced with a tough situation, we chose the shorter lesser of two evils. Techeye is always performing such gentlemanly feats, so it must be a misunderstanding that has tarnished our reputation. In any case, we plan to rectify the situation, and if our knightly deeds count for little among the Y-chromosomally challenged, we’ll just have to try using

words. That in mind, we’re dedicating the rest of this column to cutting-edge tech for the ladies. One gadget that practically screams “Take me home, woman!” is the Clockman from Takaratomy (www.takaratomy-arts.co.jp/specials/clockman). In fact, it might actually scream that; we’re not sure, since the thing only speaks Japanese. For what it’s worth, the instruction video on YouTube showed a female owner plainly unperturbed by her Clockman’s incessant squawking. Non-Japanese speakers will clearly have to enjoy this thing on its own quirky merits, such as they are. You can get one from Rakuten (global.rakuten.com/en) for about z∏.155 plus shipping, but beware as the description reads like haiku crafted by robots: “You can watch the digital display but no needles. I watch, and talk to the waste. Loud you feel, please lay next to each body. Sleeping quietly now. Since the clock, the time is accurate. The talk time and depending on the season.” Right. Anyway, for the ladies whose biological Clockmen are

already ticking at full volume, Techeye might suggest the Autowed Wedding Machine by Concept Shed (www.conceptshed.com). The AutoWed is “a novelty wedding machine offering a quick hitch, a couple of rings and a personalized certificate for just GBP1/$1.” The machine performs a short ceremony, plays some tinny wedding music and there you go. No, it’s not legally binding, except maybe for shotgun weddings involving first cousins from West Virginia. We didn’t spot a price for the AutoWed, but its makers cordially invite interested parties to “call us and we will build you one to order.” And finally, a little something for the wives and moms out there – the EP-MA70KX massage chair from Panasonic (www.panasonic.com). That’s right ladies, this is the perfect throne upon which to repose and throw sharp objects at the men-folk. This faux leather-upholstered

seat boasts a total of 33 airbags, 108 possible massage combinations (including 3D massage, whatever that is) and it comes with a voiceoperated remote control in case your body has been massaged into a state of total lethargy. It does have some rather weird features as well though, such as an alarming “buttocks, pelvis & thigh stretching” feature. The brittle-pelvised should take care. The EP-MA70KX costs $7,999.95, but after a long day spent dealing with idiot men, you’ll consider it money well spent. ●

COURTESY OF CONCEPT SHED

COURTESY OF TAKARATOMY

Tech and toys for the fairer sex

IC ON AS AN FP O SY TE UR CO

Ever been beaten senseless by an enraged, mud-covered little person? Let us know: techeye.wbj@gmail.com