VOLUME 18, NUMBER 16 • APRIL 23-29, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English

WW

W.W

BJ.P

L

Taking offPoland’s aviationindustry is benefitingfrom tough economictimes

12-13

GGoooodd oommeennssExports growing, SMEs investing

and firms hiring all provide

optimistic signs for the Polish

economy 5, 7

SH

UT

TE

RS

TO

CK

2314

Poland’s PGE gears upfor a z∏.14.6 billionwind-farm project

ECHR rules Russiamistreated relatives ofKatyn massacre victims

The Chinese premier and300 businesspeopledescend on Warsaw

CO

UR

TE

SY O

F B

BI

DE

VE

LO

PM

EN

T N

FI

News . . . . . . . . . . . . . . . . . . . . . . .2-4

Business . . . . . . . . . . . . . . . . . . . .5-6

Finance & Economics . . . . . . . . . . .7

Interview . . . . . . . . . . . . . . . . . . . .8-9

Opinion & Analysis . . . . . . . . . . . .11

Cover Story . . . . . . . . . . . . . . . .12-13

Energy in Focus . . . . . . . . . . . . . . .14

Lokale Immobilia . . . . . . . . . . .15-17

The List . . . . . . . . . . . . . . . . . . .18-19

Markets . . . . . . . . . . . . . . . . . . . . . .20

Sports . . . . . . . . . . . . . . . . . . . . . . .21

Lifestyle . . . . . . . . . . . . . . . . . . . . .22

Last Word . . . . . . . . . . . . . . . . . . . .23

REAL ESTATELokale Immobilia

• Ghelamco plans

• RealGreen conference

• Koneser revitalization

15-17

In this issue

Interview:Jan SechterThe Czech Republic’s

ambassador to Poland

talks about the two

countries’ close

relationship

8-9

WIK

IME

DIA

CO

MM

ON

S

Contractor DSS’s

bankruptcy spells new

troubles for the A2

highway 6

FFiieerryy wwoorrddssThe memory of Smolensk continues

to heat the Polish political scene 3

0

5

10

15

20

25

30Imports from Trade balanceExports to

South K

orea

Brazil

India

TurkeyJap

anNorw

ay

Switze

rland

Russia

China

United S

tates

5.9-14.7

-9.6

3 -5.2

-1.1 1.4-0.2 -0.2 -0.2

APRIL 23-29, 2012NNEEWWSS2 www.wbj.pl

Japanese

investments

coming?

Representatives of

Keidanren, the Japan

Business Federation,

were in Warsaw for a

three-day visit last week,

in the hope of finding

possible investment

opportunities in Poland.

The delegation included

representatives from

some of the biggest

Japanese companies,

including Mitsubishi,

Toshiba and Toyota Motor

Corporation. Potential

areas of cooperation

includes technology and

energy.

Komorowski

wants commu-

nism museumPolish President

Bronis∏aw Komorowski

wants the country to

create a museum devoted

to the crimes of

communism, he said last

week. According to the

president, Poland is the

only central and eastern

European country without

such a museum. “Without

the knowledge of the

past, it is difficult to build

a sense of continuity of

the state and nation,” he

said.

Budget deficit

grows

The state budget deficit

was nearly z∏.23 billion in

March, almost 66% of the

entire-year estimate. In

accordance with the

Budget Act, the gap this

year cannot exceed z∏.35

billion. “There is no

significant risk [of

exceeding] the annual

plan,” Jakub Borowski,

chief economist at Kredyt

Bank, told Gazeta

Wyborcza.

Poland to

continue

patrolling

Baltic skies

The Polish air force will

continue to participate in

NATO’s Baltic Air Policing

mission, which protects

the air space of Estonia,

Latvia and Lithuania,

Polish President

Bronis∏aw Komorowski

said last week. The heads

of Poland, Latvia and

Estonia met in Warsaw

ahead of a NATO summit

in May. The leaders also

discussed Russian plans

to build up missile capa-

bilities in the Kaliningrad

oblast, on Poland’s

northern border. ●

AgustaWestland ................13

Antal International ..............5

Apple ....................................6

Apsys Polska......................17

ARE ....................................15

Atelier 2 Architekci ............15

Avio ....................................12

Axel Springer ......................5

BBI Development NFI........15

Bin Zayed Group ..................7

Bingo Airways ....................12

Bögl & Krysl ........................6

Bulanda, Mucha

Architekci............................15

BZ WBK ................................7

CEDC ....................................6

Chapman Taylor ................16

COVEC ..................................6

DM BZ WBK ........................5

DSS ......................................6

EADS ..................................12

EFG Eurobank Ergasias ......6

elbfonds Development ......15

Forward Funds ....................7

GE ......................................12

Ghelamco Poland ..............17

Globe Trade Centre............17

Goodrich ............................12

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

Hamilton Sundstrand ........12

Hispano-Suiza....................12

Huta Stalowa Wola ..............2

Imagine Live Media............16

Immobel Poland ................15

Jones Lang LaSalle ..........16

Juvenes-Projekt ................15

Kompania W´glowa ..........14

Kulczyk Investments..........14

LiuGong ................................2

Matexi ................................15

MGPA..................................16

Mitsubishi ............................2

Morgan Stanley ....................7

MTU Aero Engines ............12

Netia ..................................17

Panattoni Europe ..............17

PGE ....................................14

PKN Orlen ......................9, 14

PKO BP ................................6

PMR Publications ................6

Polska Telefonia Cyfrowa ..17

Pratt & Whitney ................12

PZL Mielec ..................12, 13

PZL-Âwidnik ......................13

PZL-Rzeszów ....................12

Raiffeisen..............................6

RED Real Estate

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

Roubini Global Economic....7

Ruch....................................15

RWE ......................................9

Shanghai Electric ..............14

Sikorsky Aircraft

Corporation ........................12

Skanska Commercial

Development Europe ..........6

Société Générale..................8

The Bank of China ..............2

TNS ......................................3

Toshiba ................................2

Toyota Motor Corporation ..2

TVN ......................................5

Vac Aero..............................12

Vivendi ..................................5

Warsaw Stock Exchange ....6

Work Service ......................12

This week Chinese Prime Min-ister Wen Jiabao will pay akeenly awaited official visit toWarsaw. Mr Wen’s arrival willmark the highest-level visitsince 1987 – the last time a Chi-nese prime minister came toPoland – and reflects the desireof both countries to strengthenbilateral ties, especially eco-nomic ones. Mr Wen will beaccompanied by some 300 busi-nessmen from his country.

The Chinese PM’s visitcomes after Polish PresidentBronis∏aw Komorowski’s trip

to China in December of lastyear during which the twocountries signed a strategicpartnership agreement. Includ-ing Poland, eight EU memberstates have now signed suchagreements with the Asiansuperpower.

Poland has shown greatinterest in increasing its exportsto China and in attracting sig-nificant Chinese investment.Last year, Polish exports toChina amounted to an unim-pressive €1.3 billion. Importsfrom China were roughly 10

times that. As part of an effort to make

China more accessible to Polishbusinesspeople, Poland’s na-tional flag-carrier LOT PolishAirlines will begin direct flightsfrom Warsaw to Beijing in Maythis year. The government alsorecently announced a programcalled “Go China” to help Pol-ish businesses enter the Chi-nese market. Among otherthings, the program seeks toprovide entrepreneurs withinformation about Chinese lawand business culture.

During Mr Wen’s visit, aspecial Poland-CEE-Chinaforum will be organized, with300 Polish firms taking part.

Delegations from 15 coun-tries in the region will be pres-ent, including several primeministers. Mr Wen is expectedto announce a new Chineseinvestment strategy in theregion during the forum.

The biggest investmentmade by a Chinese firm inPoland in recent years wasLiuGong’s takeover of parts ofHuta Stalowa Wola in a dealestimated to be worth somez∏.250-300 million. Also thismonth The Bank of China,whose assets are estimated at$130 billion, is expected to openits first branch in Warsaw. Ana-lysts believe the bank’s primaryrole will be to provide financingfor Chinese investments inPoland.

RReemmii AAddeekkooyyaa

z∏.14.6 billionis the cost of the three offshore wind farms that will bebuilt by Polish energy firm Polska Grupa Energetyczna

in the Baltic Sea.

3.9%was the year-on-year inflation rate in March,

according to data published by the Central StatisticalOffice (GUS).

z∏.860 million is how much foreign soccer fans will spend in Poland

during the Euro 2012 football championship, accordingto Citibank.

13.3%was the estimated unemployment rate in March

according the Ministry of Labor and Social Policy.

“What else can we call a situation in which theentire elite dies, in which the head of the nation

is decapitated? That is a declaration of war.”Law and Justice politician Antoni Macierewicz, referring to the 2010 Smolenskdisaster and his belief that Russia may have been behind it.

Quote of the Week

Culinary rising starAtelier Amaro, which recently received Poland’s firstMichelin Rising Star, is described by some as the bestrestaurant in Warsaw and by others as the bestrestaurant period. To read about this culinary treas-ure in the capital, log on WBJ.pl

On WBJ.pl

Numbers in the News

Company index

APRIL18-29 BELGIAN ESCAPADEEvent: During this edition of the Belgian Escapade,

organizers are planning many cultural andbusiness events such as: a Business Mixeraccompanied by a tasting of Belgian prod-ucts and the opening of a René Magrittephotography exhibition.

Location: KrakówWeb: belgium.pl

23-25 INTERNATIONAL HR CONGRESS & EXPOEvent: The 15th edition of Poland’s HR Congress,

under the motto “HR – What’s the game weplay?” The event will explore the strategicrole of HR within organizations.

Location: WarsawWeb: kongreskadry.pl

24 YOUNG ART AUCTIONEvent: Starting price of all items: z∏.500Location: DESA Unicum, Warszawa, ul. Marsza∏kows-

ka 34-50Web: desa.pl

26 DESA AUCTIONEvent: Auction of works on paperLocation: DESA Unicum, Warszawa, ul. Marsza∏kows-

ka 34-50Web: desa.pl

MAY1-3 ANNUAL INVESTMENT MEETING 2012Event: This emerging markets FDI-focused event

provides institutional, corporate and individ-ual investors with a comprehensive set ofguidelines for their future investment deci-sions in high growth regions.

Location: DubaiWeb: aimcongress.com

10 PRCH RETAIL HORIZONSEvent: Polish Council of Retail Centres’ Retail Hori-

zons 2012 Conference gathers executives,investors, developers, administrators andretail chains from the Polish shopping centermarket.

Location: WarsawWeb: prch.org.pl

April/May

DATELINE

Chinese Premier’s visit to Warsaw

IN THE SPOTLIGHT

Figures in focusMain trading partners of the EU27Non-seasonally adjusted data, January 2012 (in € billions)

Source: Eurostat

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

Chef

Wojciech

Modest

Amaro

APRIL 23-29, 2012 NNEEWWSS www.wbj.pl 3

Poles’ Euro

2012 optimismThe vast majority of Poles

are optimistic about Euro

2012, according to the

results of a new survey

carried out by TNS for the

company organizing the

tournament, PL.2012. A

total of 80% of those

questioned said they were

optimistic about the

organization of the

upcoming soccer

tournament. Meanwhile,

63% of respondents said

they think that the

tournament in Poland will

definitely be a success.

This is compared to just

49% of respondents in a

similar survey carried out

in 2009.

Inflation drops

below 4%

As predicted by analysts

and the Ministry of

Economy, the Central

Statistical Office (GUS)

announced that the

year-on-year consumer

price index inflation rate

in March dropped to

3.9% from 4.3% in

February. However,

economists do not

expect price rises to

continue to slow in the

short term. The recent

increases in gas prices

are worrying, since they

might push the inflation

rate up in the coming

months, analysts said.

Poland

commits

$8 bln to IMFThe head of the

International Monetary

Fund said last

Wednesday Poland had

committed $8 billion in

additional financing

resources to the global

lender ahead of a

meeting of finance chiefs

in Washington over the

weekend. “This is part of

a concerted action among

important creditors to

ensure the Fund has

sufficient resources to

tackle the crisis and to

promote global economic

stability,” IMF managing

director Christine

Lagarde said in a

statement.

Wage growth

slows

Wages in companies that

employ 10 or more

workers increased by an

average of 3.8% y/y in

March in nominal terms,

the Central Statistical

Office (GUS) said last

Wednesday. This was a

drop from the 4.3% rise

seen in February. ●

Katyn verdict

EECCHHRR rruulleess aaggaaiinnsstt RRuussssiiaa iinn KKaattyynn ccaasseeThe European Courtof Human Rightscriticized Russia’streatment of Katynvictims’ relatives

The European Court ofHuman Rights (ECHR) inStrasbourg has found Russianauthorities guilty of thedegrading and inhumanetreatment of 10 Polish nation-als whose relatives were killedin the 1940 Katyn massacre. Italso said Russia had breachedits obligation to cooperatewith the ECHR.

The families who broughtthe case to the ECHR con-tended that Russian authori-ties had failed to carry out afull investigation into thetragedy, and that the appli-cants were submitted todegrading treatment becausethey were denied informationabout the whereabouts of thevictims for such a long time.

“As regards the group of 10applicants [who were the clos-est relatives of the Polish offi-cers or state officials killed in1940], the court found that

they had suffered a doubletrauma: losing their relatives inthe war and not being allowedto learn the truth about theirdeath for more than 50 yearsbecause of the distortion ofhistorical facts by the Sovietand Polish communist authori-ties,” the judgment reads.

“The court was struck bythe apparent reluctance of theRussian authorities to recog-nize the reality of the Katynmassacre, [and] found it hardto disagree with the applicants’argument that a denial of thereality of the mass murder ...demonstrated an attitude lack-ing humanity.”

However, the court foundit could not examine the appli-cants’ complaint that the Russ-ian authorities failed to carryout an adequate criminalinvestigation into the circum-stances surrounding thedeaths of their relatives.

The ruling regards the caseof Janowiec and Others v.Russia, brought to Strasbourgby 15 Polish nationals whoserelatives were among thealmost 22,000 army officersand other Polish nationals

murdered by the Soviet secretpolice (NKVD) in and aroundthe Katyn Forest, Russia,between April and May 1940.

“We will be able to judgethis verdict when we learn itsdetails and precise justifica-tion,” said Justice MinisterJaros∏aw Gowin after the ver-dict was made public, addingthat “millions of Poles have afeeling of satisfaction that oneof the most heinous crimes

ever committed against thePolish nation will not gounpunished.”

For decades, Sovietauthorities refused to admitresponsibility for the deaths,instead blaming them on theNazis. This was until 1990when then-Soviet leaderMikhail Gorbachev formallyadmitted that the executionswere the responsibility of theNKVD. On November 26,

2010, the Russian parliamentreiterated that the “massextermination of Polish citi-zens on USSR territory dur-ing World War II” had beencarried out on Stalin’s orders.

Any party may now requestthat the case be referred to theECHR’s Grand Chamberwithin the next three monthsfor a final judgment.

AAlliiccee TTrruuddeellllee,, RReemmii AAddeekkooyyaa

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

The ECHR found Russia guilty of inhumanely treating victims’ families

Politics

KKaacczzyyƒƒsskkii,, LLaaww aanndd JJuussttiiccee rraattcchheett uupp SSmmoolleennsskk rrhheettoorriiccFollowing the secondanniversary of theSmolensk disaster, onePiS politician accusedRussia of “declaringwar” against Poland

Poland’s largest oppositionparty, Law and Justice (PiS),has been ratcheting up its rhet-oric against Prime MinisterDonald Tusk’s governmentfollowing the second anniver-sary of the April 10, 2012Smolensk catastrophe inwhich president LechKaczyƒski and 95 others per-ished.

Polish and Russian investi-gations largely put the causesof the crash down to badweather, pilot error and poortraining. But PiS leaderJaros∏aw Kaczyƒski recentlysuggested in an interview thatthe late president, his twinbrother, was murdered. Healso implied Poles could bebehind the crime, saying the“roots of the assassinationcould have been in Poland.”

Last week, he spoke at arally held in Kraków to com-memorate the burial of Presi-dent Kaczyƒski at the WawelCathedral.

“We are fighting for Poland

to finally become a country offree Poles … a free countrywithout external enemies andwithout those who representthose enemies here either outof stupidity or simply on pur-pose,” said Mr Kaczyƒski,adding that the “Smolensk lie”– referring to the findings ofthe Polish and Russian investi-gations – “has been smashedto smithereens.”

Mr Kaczyƒski also said thatPoland needs a “moral revolu-tion” and that Prime MinisterTusk “for reasons he knows is

afraid of [Russian Prime Minis-ter Vladimir] Putin and he isalso afraid of Lech Kaczyƒski… the symbol of a free Poland.”

A ‘declaration of war’Meanwhile, Antoni Macie-rewicz, a PiS MP who headsthe parliamentary team inves-tigating the Smolensk catas-trophe went even further.

“What else can we call a sit-uation in which the entire elitedies, in which the head of thenation is decapitated? That isa declaration of war.”

Mr Macierewicz alsowarned of further attacks.“Even if the next attack ispostponed for a year, two orfive, we need to know that [theSmolensk catastrophe] was adeclaration of war and I amsaying this fully aware of allthe consequences.”

In response GrzegorzSchetyna, deputy leader of theruling Civic Platform (PO)and former Speaker of theSejm (Poland’s lower house ofparliament) called the state-ments “shameful.”

“The prosecutor’s officeshould draw conclusions fromthis and press charges wherethe law is broken,” he said.

On Thursday last week,Prime Minister Donald Tuskfinally stepped into the fray,decrying PiS’s rhetoric as “neg-ative” and “aggressive,” andwarned of “practical conse-quences.”

“What we see now inPoland is the opening of a newfront in the domestic cold war… those who today are utter-ing those words full of hatredand aggression, words whichdirectly and negatively affectPolish national interest, thesepeople should know that thosewords might have practicalconsequences,” said the PM.

“Joke time is over,” headded.

A recent poll conducted byCBOS showed PO had the sup-port of 29 percent of voters,while PiS had 22 percent. Some21 percent of those polledexpressed uncertainty aboutwhich party they support. Thisis the highest level of uncertain-ty since last autumn’s elections,according to CBOS. April alsomarks the first month in whichPO has not lost any support,while PiS lost one percent sincelast month. RReemmii AAddeekkooyyaa

CO

UR

TE

SY O

F P

IS

Jaros∏aw Kaczyƒski implied Poles could be behind his brother’s “assassination”

APRIL 23-29, 2012NNEEWWSS4 www.wbj.pl

Warsaw Business Journal PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week for 12 months.

Choose one option by checking the box

OPTION 1

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus WBJ PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week. Also receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

CLIENT DETAILS

Name......................................................................................................................Company......................................................................................................................Address......................................................................................................................Postal code......................................................................................................................City......................................................................................................................Country......................................................................................................................Telephone/Fax......................................................................................................................e-mail......................................................................................................................NIP (Poland)/EU VAT number (EU countries)......................................................................................................................

Please fax this form to: +48 22 639 85 69 or mail it to our office: Subscriptions Warsaw Business Journal Valkea Media S.A. ul. Elblàska 15/17, 01-747 Warsaw, Poland

PAYMENT OPTIONS (please check one)

❏ Pre-payment by bank transfer upon receipt of a pro-forma invoice. The pro-forma invoice will be sent to you immediately upon receipt of your order. Your subscription will start within one week of payment.

❏ Credit card: ❏ American Express ❏ Visa ❏ Mastercard

Cardholder name

......................................................................................................................Number

......................................................................................................................

CVV2/CVC2/CID Expiration date

....................................................... ............................................................

Signature

......................................................................................................................

SUBSCRIBE FOR 1 YEAR AND SAVE UP TO 50% OFF THE COVER PRICE

Wafor

ENQUIRIESAMICHALIK@VALKEA.COM, OR CALL +48 (22) 678-9912

Everywhere: zł.424

In Poland: zł.550 In Europe: €297 Outside Europe: €374

In Poland: zł.691 In Europe: €330 Outside Europe: €407

WBJ IS NOW AVAILABLE IN DIGITAL FORMAT.READ WBJ AS A PDF OR E-ZINE.

❏

OPTION 2❏ WBJ Print

OPTION 3❏ WBJ PremiumWBJ Electronic

Tomasz Lipiec, whoserved in the PiS-ledgovernment, has beenconvicted of solicitingand accepting bribes

A Warsaw district court hassentenced Tomasz Lipiec, whowas sports minister in the gov-ernment led by Law and Jus-tice (PiS) from 2005-2007, tothree and a half years in jail oncorruption charges.

The 41-year-old, who is aformer Olympic race walker,was accused by prosecutors ofhaving taken at least z∏.270,000in bribes.

Mr Lipiec was involved intwo separate investigations:one from his time as ministerand another, earlier case whenhe was head of the WarsawSports and Recreation Center.

In the earlier case, Mr Lip-iec was accused of acceptingbribes totaling z∏.170,000regarding the renovation of anice rink. He was acquitted ofthis particular charge.

But last week he was foundguilty of demanding andaccepting a bribe of z∏.100,000from Tadeusz M. before mak-ing Mr M. – whose last namecannot be revealed in accor-

dance with Polish law – thedeputy director of the CentralSports Center (COS). Thisoffense occurred while MrLipiec was sports minister.

He was also found guilty ofhaving instructed Tadeusz M.to falsely employ a man atCOS who would actually serveas Mr Lipec’s personal driverand who would earn morethan the standard marketsalary.

Moreover, he was found tohave instructed that anotherperson be employed in thesales department of COS todeal with the business of the

outdoor market at the formerTenth Anniversary Stadium inWarsaw, though it was set tobe closed down shortly tomake way for construction onthe new National Stadiumahead of the Euro 2012 soccerchampionships.

Finally, Mr Lipiec wasfound guilty of signing ficti-tious work agreements with hisson’s nanny.

The main witness in thecase was Tadeusz M., who wasdescribed by the trial’s judgeas “consistent and credible,”during the proceedings.

RReemmii AAddeekkooyyaa

Corruption

Former sports minister jailed for corruption

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

Mr Lipiec was sentenced to three and a half years in jail

The event broughttogether World War IIconcentration campliberators andHolocaust survivors

Over 10,000 international stu-dents took part last Thursdayin the March of the Living, aneducational program thatbrings together students froma variety of backgrounds onYom Hashoah, HolocaustRemembrance Day. Theymarched between Auschwitzand Birkenau, the two parts ofthe Auschwitz-Birkenau Naziextermination camp located insouthern Poland.

This year’s march, whichmarked the event’s 25th

anniversary, also broughttogether World War II concen-

tration camp liberators andHolocaust survivors, most ofwhom had never met before.

“The 2012 March of theLiving is dedicated to survivorsand liberators,” said Dr.Shmuel Rosenman, chairmanof March of the Living. “Lib-erators are among our mostrelevant and credible witness-es. When our students listen toa witness, they become a wit-ness and are superbly equippedto carry the message forward tofuture generations.”

Following the march and aweek in Poland spent studyingthe roots of the Holocaust,members of the group flew toIsrael.

“Three generations remov-ed from the events of theHolocaust, it is imperative toestablish an incontrovertible

and everlasting testament tothe truth and ensure a brighterfuture for all humanity,” saidDr David Machlis, vice chair-man of March of the Living.

“For the sake of history andhumanity, we must record [sur-vivors’ and liberators’] experi-ences and preserve their recol-lections while we are still able.”

Approximately six millionJews and millions of other tar-gets of Nazi aggression werekilled during the Holocaust.

The Auschwitz-Birkenaucomplex was the largest of thedeath camps established by theNazis. Between 1940 and 1945,an estimated 1.1 million people– most of them Jews – weremurdered there.

Soviet troops liberatedAuschwitz on January 27, 1945.

GGaarreetthh PPrriiccee

March of the Living held toremember the Holocaust

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

Over 10,000 people marched between Auschwitz and Birkenau

APRIL 23-29, 2012 IINNDDUUSSTTRRYY NNEEWWSS www.wbj.pl 5

A survey of sevenmajor EU economiesrevealed that PolishSMEs have the mostoptimistic investmentplans this year

In 2012, Polish small andmedium-sized enterprises(SMEs) plan to invest 34 per-cent more than they did last

year and are far more bullishthan their counterparts in theCzech Republic, France, Ger-many, Hungary, Italy and theUK according to a GE Capitalsurvey.

Polish SMEs intend toinvest €35.3 billion over thenext 12 months and with a “netconfidence score” of 39.8 per-cent, are by far the most opti-mistic out of all those sur-

veyed. Of the Western European

economies surveyed, GermanSMEs were the most confi-dent, having plans to increaseinvestments by 17 percentyear-on-year in 2012. SMEs inall other countries surveyedwere either in negative territo-ry, meaning they will be invest-ing less this year than in 2011,or expecting single-digit

increases in investment in2012.

The manufacturing equip-ment and commercial fleetsectors are expected to bene-fit the most from the positiveattitudes of SMEs in Poland.On average, survey respon-dents said that they wouldinvest 53 percent more incommercial vehicles and 44percent more in manufactur-

ing equipment than they didlast year.

The IT sector is also likelyto benefit, since Polish SMEsexpect to increase theirexpenditures on IT hardwareby 8 percent and by 14 per-cent on software. A key rea-son for this is that they needto build capacity for servicingan expected increase in neworders, providing further

proof of Polish SME opti-mism.

In general, current invest-ment is mainly aimed atenhancing efficiency and pro-ductivity, servicing growth innew orders and replacingdeteriorating equipment.

The report was based on asurvey of 1,750 SMEs inseven countries.

RReemmii AAddeekkooyyaa

Enterprise

PPoolliisshh SSMMEEss bbuulllliisshh oonn iinnvveessttmmeenntt ffoorr 22001122

Employment ofspecialists andmanagers exceededprojections in Q1, agood sign for thePolish economy

Recruitment of managers andspecialists in Poland during thefirst three months of this yearexceeded projections made byemployers prior to the start ofthe quarter, a new report hasfound.

Some 58 percent of employ-ers said in response to a surveyby executive recruitment firmAntal International that theytook on new professionals andmanagers in Q1. Before thestart of the quarter, just 49 per-cent said they planned to takeon that type of employee.

Poland was therefore one ofthe world leaders when it cameto the percentage of companiesthat recruited specialists, rank-ing 11th out of the 85 countriessurveyed by Antal.

Artur Skiba, managingdirector Antal InternationalPoland, said the results “clearlyshow that the projections for aneconomic downturn proved tobe exaggerated.”

Polish financial andaccounting centers undertookthe most recruitment activity inQ1, with 85 percent of employ-ers taking on managers and

specialists. Next up wereaccounting and consulting firms(72 percent), followed by bank-ing and financial institutions (67percent) and automotive andaviation (65 percent) firms.

Poland’s strong perform-ance is seen by Antal as evi-dence that its economy isbecoming increasingly competi-tive.

“It is worth noting thatPoland belongs not only to thegroup of countries whererecruitment of specialists andmanagers is the most dynamic,but also that the percentage ofemployers who dismiss workersis increasingly low,” said MrSkiba.

“This demonstrates the sta-bility of the Polish economy and

its potential for development.Our neighbor Slovakia was alsocharacterized by optimisticgrowth rates for employment ofspecialists and managers, butthe rate of redundancies thereis now 46 percent,” he added.

The percentage of special-ists and managers who were dis-missed in Poland during Q1 isdescribed by Antal as being at a“low and stable level.” In total,16 percent of companies sur-veyed said they dismissed high-level employees in the firstquarter, with 15 percent sayingthey planned to do the same inthe current quarter. Most dis-missals were in pharmaceuticalfirms, telecommunication com-panies and law firms.

GGaarreetthh PPrriiccee

Recruitment

Optimistic hiring figures area positive signal for the economy

0

20

40

60

80

100

Pharm

aceu

ticals

Telec

ommun

icatio

ns

Law fir

ms

IT an

d soft

ware

servi

ces

Acco

untin

g

and c

onsu

lting

Finan

cial a

nd

acco

untin

g cen

ters

Accountants’ paradisePercentage of employers expecting to recruit managers orspecialists in Q2 2012, by sector

Source: Eurostat

The German-Swissmedia company is nowin exclusive talks withTVN over the z∏.1.4 bln portal

Polish media giant TVN hasentered into exclusive negotia-tions with Ringier AxelSpringer Media over establish-ing a “strategic alliance” for itsportal Onet.pl, the firm saidlast week.

“This confirmed earlierrumors; it was not a surprise,as was reflected in investors’lack of reaction. TVN’s stockwas not up on the news, andactually went down duringthe week,” said Dariusz Gór-ski, an analyst at DM BZWBK.

TVN said it expects toretain a minority stake in theportal and to continue to beinvolved in its joint develop-ment.

“Onet is ideally positionedto expand [and] benefit fromthe fast-paced evolution of thePolish media landscape as wellas the rapidly expandingonline market. A future part-nership with Ringier AxelSpringer Media AG wouldallow Onet to dynamicallydevelop its existing business aswell as benefit from comple-mentary strength of a new

ownership structure,” MarkusTellenbach, president andCEO of TVN, said in a state-ment.

Exclusive talks will rununtil May 31. Mr Górski saidthe wording of the agreementis reminiscent of TVN’s recentand “very complex” deal withFrance’s Vivendi. But contraryto that deal, Mr Górski saidOnet’s sale would likely bringTVN cash, which would helpthe firm pay its debts. TVN’sdebts currently stand at z∏.2.5billion, while Onet is valued atz∏.1.4 billion.

According to California-based web traffic reporting

portal Alexa, Onet.pl is cur-rently the sixth-most popularwebsite in Poland. Onet holdsthe top position among othergeneral news portals such asWirtualna Polska and Gaze-ta.pl.

Ringier Axel SpringerMedia, German publisherAxel Springer’s joint venturewith Swiss media companyRingier, manages a portfolioof over 70 print titles and morethan 60 digital platformsacross Central and EasternEurope. It owns Polish dailyFakt and weekly NewsweekPolska.

AAlliiccee TTrruuddeellllee

Online media

Ringier Axel SpringerMedia to take over Onet.pl?

TVN wants to retain a minority stake in Onet

APRIL 23-29, 2012BBUUSSIINNEESSSS6 www.wbj.pl

Interest-rate

hike?The National Bank of

Poland should raise

interest rates by half a

point to 5%, because

inflation has remained

“stubbornly high” and

Poland’s slowdown has

been “relatively mild”

PKO BP chief economist

Rados∏aw Bodys said. The

first quarter-point rise is

likely to be seen as early

as in May “if monthly data

doesn’t surprise,” while

the same rise is expected

following Q2, Mr Bodys

told a conference on

Tuesday. The central

bank warned in April that

an interest rate hike is

likely if inflation

continues to exceed 3.5%.

Poles drank

z∏.1.8 billion

worth of wine

in 2011

Sales of wine in Poland

totaled z∏.1.8 billion in

2011, representing an

increase of some z∏.500

million over a period of

just five years, reported

Puls Biznesu. And

because Poles still drink

10 times less wine than

their European neighbors

on average, there is

significant potential for

further growth in the

Polish wine market.

“Gains on the market

have persisted for

several years and we

expect that trend to

continue in 2012,” said

Anna Za∏uska, a spokes-

person for beverage

company CEDC. ●

Contact: Miros∏aw Stefanik

ms@pnplaw.pl

Legal News

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Operators should not collect data A draft bill to amend the Telecommunica-tions Law has been filed in parliament.Pursuant to the draft, telecommunicationoperators would be able to store networkusers’ data for just six months and not fortwo years as is currently the case.

At the end of this six-month period thedata should be destroyed unless it hasbeen secured by the relevant authorities.The draft’s authors believe the change willhave a positive impact on society, since aprolonged period of data storage couldintefere with citizens’ rights and free-doms.

Changes to civil proceduresOn May 3, 2012 an amendment to the CivilProcedure Code will come into force. Themost important change is that the practiceof carrying out separate proceedings in

commercial cases is to be ended. Thismeans that disputes between entrepre-neurs relating to their business activitieswill be subject to general rules of civil pro-cedure. The changes are set to speed upand facilitate proceedings in civil courts.

Limited liability in case of car damageOn April 12, 2012 the Supreme Court,composed of seven judges, introduced aresolution (court ref. no. III CZP 80/11) oncivil liability regarding insurance held bythe owner of a vehicle. At the request ofthe injured party, insurance companies areobliged to pay compensation, includingfor the costs of new parts needed torepair the damaged vehicle.

If an insurance company can prove thatthis has led to an increase in the value of aparticular vehicle, compensation may bereduced by the amount of this increase. ●

Road building

AA22 ccoonnttrraaccttoorr DDSSSS ddeeccllaarreedd bbaannkkrruuppttSubcontractors havethreatened to “blockWarsaw” unless theyreceive payment fortheir work

A court in Warsaw ruled lastweek that aggregates supplierand road builder DolnoÊlàskieSurowce Skalne (DSS), whichwas working on Section C ofthe A2 highway, is to bedeclared bankrupt. DSS,which said it would appeal thedecision, was contractor forSection C in a consortium withCzech-German firm Bögl &Krýsl.

DSS filed for bankruptcy,but had hoped to reach agree-ment with its creditors beforeliquidation proceedings began.A number of DSS’s subcon-tractors which haven’t beenpaid for their work have alsofiled for bankruptcy. At the

end of last year, DSS hadz∏.836 million in debts, Wybor-cza.pl reported. Its main credi-tors are Kredyt Bank andbond holders.

Bögl & Krýsl hasannounced that it will takeover all work on Section C andthat it would complete con-struction by the deadline. Thistask became harder in the sec-ond half of last week, when anumber of subcontractorsworking on the section droveexcavators and trucks onto theA2, blocking constructionwork in protest at having notbeen paid by DSS.

“I am in a dramatic situa-tion. I employ hundreds ofmen and their fate is nowthreatened,” Pawe∏ Winnicki,owner of one of the subcon-tracted firms, told Gazeta.pl,adding that his company hasnot been able to make contactwith DSS.

“If we do not receivemoney within the next twoweeks, we will block the wholeof Warsaw,” he added.

WBJ was unable to contactrepresentatives at DSS. Also,the firm’s website has beentaken down.

DSS has reportedly said thatthe main reason it filed forbankruptcy was that it hadbecome too heavily engaged inroad building, and especially inthe construction of the A2.Some experts have said thepublic procurement processisn’t sufficiently rigorous inestablishing whether a contract-ed company has the wherewith-al to pay its subcontractors.

“This contract was simplytoo large for [DSS] – even in aconsortium with Bögl &Krýsl,” said Bart∏omiej Sosna,head construction analyst atPMR Publications.

“DSS is mainly a producer

of aggregates and this was itsfirst contract as a general con-tractor, unfortunately unsuc-cessful.”

Chinese company COVEC,which was the contractor for

Section C before DSS andBögl & Krýsl, had its contractterminated last year after italso failed to pay subcontrac-tors on time.

GGaarreetthh PPrriiccee

Banking

Regulator OKs Raiffeisen’stakeover of PolbankApproval was grantedafter Raiffeisen agreedto float some of theentity on the WSE bymid-2016

Austrian bank Raiffeisen hashad its €490 million takeoverof a controlling stake in Polishlender Polbank approved byPoland’s Financial SupervisionAuthority (KNF).

The acquisition of the 70percent stake in Polbank,which was previously the Pol-ish arm of Greek lender EFGEurobank Ergasias, wasapproved at a meeting of theKNF last week. This cameafter Raiffeisen agreed to floatat least 15 percent of the newlycombined entity of Polbankand its Polish unit RaiffeisenBank Polska on the WarsawStock Exchange no later thanmid-2016.

“The KNF took particularaccount of the bank’s businessplan and obligations submittedby the investor … [including]the introduction of the com-bined bank’s shares for tradingon the Warsaw StockExchange no later than June30, 2016,” the KNF said in a

statement. The regulator added that it

took into account the commit-ments made by the investor forthe sound and prudent man-agement of the bank in areassuch as its capital levels and itsdividend policy.

As a result of the acquisi-tion of Polbank, Raiffeisen hassignificantly strengthened itsposition in the Polish market.Polbank currently has morethan 800,000 customers inPoland and operates over 300branches.

The transaction was agreed

to by the relevant companiesin February last year but need-ed the approval of the KNFbefore it could be completed.When the asset was first putup for sale, Polbank’s Greekowner reportedly intended tosell at most half of its stake,keeping overall control of thebank for itself. However, thisfigure was eventuallyincreased to 70 percent of thewhole company to ensureRaiffeisen could take com-plete control and merge thetwo banks.

DDaavviidd IInngghhaamm

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

Raiffeisen Bank Polska will merge with Polbank

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

DSS said the A2 project was behind its bankruptcy

Poland leads European mobile-commerce boomMobile transactions in Polandgrew by 722 percent last year,according to a report by zanox,a Berlin-based online adver-tisement firm.

That’s compared to a 313percent increase for Europe ingeneral, making Poland by farthe fastest-growing mobile-commerce market in Europein 2011. The zanox networkrecorded 2 million mobiletransactions totaling €120 mil-lion over the last year. “Themobile commerce revolutionhas already started and it isled by Poland,” says thereport.

“Just behind us are theNordic countries, which glob-ally generate the biggestvalue of mobile transactions.The most popular [sectors formobile transactions] inPoland are airline offers andshopping groups,” said JakubMaj, zanox sales director forCentral and Eastern Europe.

While the Google-operat-ed Android system is popularfor mobile commerce inPoland, with some 43 percentof Poles using it, Apple’s iOSsystem is currently the mostpopular in Europe.

“Our research shows that

50 percent of mobile transac-tions in Europe are done onan iPad … and 75 percent ofall transactions are done onan Apple product,” said MrMaj.

However, the study also

shows that the popularity ofthe iOS has recently beendecreasing in favor ofAndroid.

“If we were to add up allthe equipment which uses theiOS system, that is the iPhone,

iPod and iPad, then [the num-ber of people using] this sys-tem [for mobile commerce]has dropped by 7 percentagepoints since last year,” thecompany said.

IIzzaabbeellaa DDeeppcczzyykk

APRIL 23-29, 2012 FFIINNAANNCCEE && EECCOONNOOMMIICCSS www.wbj.pl 7

Media patronage

Economic growth

IMF raises forecast for Emerging EuropeThe InternationalMonetary Fund seesthe region’s prospectsas brighter than it didat the beginning of theyear

The IMF has raised 2012growth expectations for Emerg-ing Europe, a region whichincludes Poland, to 1.9 percent,up from the 1.1 percent it fore-cast in January this year.

The IMF also expects theregion to grow by 2.9 percentnext year, up from its earlier 2.4percent forecast.

Poland is expected to growby 2.6 percent in 2012 and by3.2 percent in 2013, making itthe leader in terms of growth in

the region, according to theorganization’s bi-annual WorldEconomic Outlook publishedlast week.

“Near-term growth pro-spects in emerging Europe willbe closely tied to developmentsin the euro area core,” the IMFstated.

“Much of the spillover fromthe euro area slowdown in late2011 will already have beenabsorbed, and trade growth andmanufacturing activity areexpected to pick up, both in theeuro area and globally, through2012,” it added.

The Emerging Europeregion comprises CEE coun-tries including Turkey butexcluding euro-zone statesEstonia, Slovakia and Slovenia,

as well as the Czech Republic,which the IMF now classifies asAdvanced Europe.

The IMF is also slightlymore optimistic about the glob-al economy than it was in itsprevious report. It now expectsglobal output to grow by 3.5percent this year and 4.1 per-cent in 2013. Last year, theglobal economy expanded by3.9 percent.

Meanwhile, the euro zone, akey trading partner for Poland,is expected to expand by 2.1percent this year. “Policy hasplayed an important role inrecent improvements, but vari-ous fundamental problemsremain unresolved,” the IMFwrote in its report.

RReemmii AAddeekkooyyaa

Exports

Polish exports to Russiasee 40 percent riseIn the first two monthsof 2012 exports toPoland’s easternneighbor were worthz∏.4.7 billion

Polish exports to Russiaincreased by 40.7 percent in thefirst two months of 2012, andwere worth a total of z∏.4.7 bil-lion, according to Poland’s Cen-tral Statistical Office (GUS).

During the same periodPoland’s overall exports grew byonly 0.1 percent, while exportsto the country’s main tradingpartner Germany fell by 1.9percent. Exports to the CzechRepublic, France, Hungary,Italy, Spain and Sweden alsodecreased.

“The fact is that Polishexports to eastern countriesincluding Russia have been ris-ing for some time now,” BZWBK analyst Piotr Bielski toldWBJ.

“The reason for this is thatPolish companies are trying toexploit opportunities to findnew markets. Some economiesin the euro zone are sufferingeconomic slowdown and othercountries are subject to reces-sion, so Polish companies are

having to look for new moreprofitable markets,” he said.

Mr Bielski added that heexpects this trend to continuebecause, “prospects for theeuro zone are definitelygloomy.”

Among the most popularexports currently being sold toRussia are cosmetics, personalhygiene products, chemicalproducts, vehicles and machin-ery, and food.

However, despite the signif-icant increase in exports to Rus-sia, the country was only ranked

sixth overall in a table ofPoland’s export markets forJanuary and February 2012.

Germany still remainsPoland’s main export market.In the first two months of theyear alone exports to Poland’swestern neighbor were worthsome z∏.24.7 billion, 26 per-cent of Poland’s total exportsduring this period. Great Bri-tain was ranked second, withexports worth z∏.6.3 billion.France was ranked third withz∏.6.2 billion.

DDaavviidd IInngghhaamm

0

2

4

6

8

10

2011*20

1020

0920

082007

2006

2005

2004

2003

200220

01

* estimate

Going EastExports to Russia 2001-2011 (in $ billions)

Source: Central Statistical Office, Ministry of Economy

Polish-US economic relations

RRoooomm ffoorr ggrroowwtthhA new study has foundthat while UScompanies haveinvested over $20billion in Poland overthe last 20 years, morecan be done

In the run-up to the Polish-American Business Summitscheduled for June 20 in War-saw, the American Chamberof Commerce, PKPPLewiatan and the US-PolandBusiness Council have calledfor increased economic coop-eration between the twonations. They outlined poten-tial areas for growth in aWhite Paper launched lastweek in the capital.

Since Poland’s transfor-mation to a market-basedeconomy, FDI has been themain driver of Polish-Ameri-can economic relations, thestudy notes. In that time, UScompanies have invested over$20 billion in Poland, makingit the largest US FDI recipi-ent among the CEE coun-tries, including Russia andUkraine.

But an important part ofthe $3.7 billion in exports fromPoland to the US in 2011 wasgenerated by American com-panies, the report found. “Ourbusinesses have the ability toenter the US market. Howev-er, the US so far has beenlocated outside the circle ofinterest of the majority Polishexporters and a lot of effortneeds to be made to increasethe volume of trade in bothdirections,” said HenrykaBochniarz, president of PKPPLewiatan.

On the other hand, one ofthe major concerns for US

investors, said JosephWancer, chairman of theAmerican Chamber of Com-merce in Poland, is the futureof government programs sup-porting investment, includinginvestment subsidies and taxreliefs in special economiczones. “The current system isnot flexible and not apacewith the world’s rapidly

changing economic situa-tion,” said Mr Wancer.

Among possible solutionsfor boosting bilateral tradeand investment is a moreactive policy involving regionalinstitutions, both Americanand Polish, said Eric Stewart,President of US-Poland Busi-ness Council.

VVeerroonniikkaa JJooyy

-200

225

650

1,075

1,500

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

American investmentUS FDI net inflow to Poland (in $ millions), 2000-2010

Source: Analysis from AmCham, PKPP Lewiatan and the US-Poland Business Council,

based on National Bank of Poland data

AIM Congress 2012Business leaders set for emergingmarkets conference in Dubai

Government officials, private asset ownersand project promoters from across the globeare set to descend on Dubai this May for theAnnual Investment Meeting 2012 (AIM)conference.

Organized by the United Arab EmiratesMinistry of Foreign Trade from May 1-3, the2012 conference will be held at the prestigiousDubai International Convention and Exhibi-tion Center, which is situated directly inbetween old and new Dubai.

AIM is the world’s first Emerging MarketsFDI-focused event to offer a blend of tradefair and intellectual features aimed at enrich-ing institutional, corporate and individualinvestors attending with a comprehensive setof guidelines for their future investment deci-sions in high growth regions.

The conference targets fast-transformingeconomies, emerging countries and industrieswith the most anticipated growth factors andwill enhance their potential by providing astrategic platform that delivers ready-to-invest showcases and how-to-invest method-ologies.

Diverse focusAIM proposes a diverse yet very focused setof features. As well as the main conference,there will also be one-to-one meetings, a Min-isterial Networking Roundtable, workshops,country presentations, investor site visits and

exhibitions. All of these are designed toexceed the needs of prospective investors andreach out to a wider range of project promot-ers.

Attendees are those seeking realistic andreliable investment opportunities in emergingmarkets and planning to interact directly withkey decision makers, government officialsand successful foreign investors from repre-sented countries.

Established as the new staple for foreigntrade and FDI, AIM attracts a wide range ofhigh-profile businesspeople from both theprivate and public sectors. The list of partici-pants comprises heads of states, ministers,government officials, mayors, executives andhigh-net-worth individuals from 76 contribut-ing countries from across the globe

Key speakers at this year’s event willinclude: HH Sheikh Khaled Bin Zayed AlNehayan, the chairman and founder of theBin Zayed Group; Nouriel Roubini, CEO,Roubini Global Economic, and Jerome AlanReid, current CEO of Forward Funds, andformer executive director of private wealthmanagement at Morgan Stanley, US, amongmany others.

Poland is set to be represented in Dubai bythe Polish Information and Foreign Invest-ment Agency (PAIiIZ), as well as Poland’sonly business weekly in English Warsaw Busi-ness Journal. Those in attendance will be ableto locate the WBJ stand at A8 in the mainconference hall, with PAIiIZ situated nearbyat D3. ●

APRIL 23-29, 20128 www.wbj.pl IINNTTEERRVVIIEEWW

Czech-Polish relations

GGoooodd nneeiigghhbboorr ppoolliiccyy

Ewa Boniecka: The traditional-ly close and friendly relation-ship between Poland and theCzech Republic now has thestatus of a strategic partner-ship. What does this mean inpractice?

Ambassador Jan Sechter: It is asynthesis of our common orvery similar attitudes towardsvarious problems, of defendingour interests and strengtheningour position in Europeanforums and other internationalinstitutions. I want to underlinethe importance of elevating ourmutual relations to the strategic

level by pointing out that theCzech Republic has a strategicpartnership with only two coun-tries: Poland and Germany.

Poland and the Czech Repub-lic are presently active inbuilding a coalition to defendthe budget proposals present-ed by the European Commis-sion for the 2014-2020 period,which are opposed by some EUmembers. How do you seethose efforts?

The Czech-Polish strategicpartnership has a broader con-text, because it encompassesnot only our mutual efforts forachieving our aims but also ourcooperation with countries withwhich we have shared interests.So, along with other membersfrom Central and EasternEurope (CEE), we are trying tobuild a coalition for the defenseof the European Commission’sbudget proposals. We are alsolooking for support fromWestern countries. It is high

time for such action, becausethere are strong pressures com-ing from the EU’s biggest netpayers, and tough discussionsgoing on throughout the bloc.

The EU is in a process ofchange and this is also reflectedin attitudes towards shaping thebudget. In such a difficult andvolatile situation, our countrieshave to defend the principle ofcohesion policy, which is one ofthe most important for mem-bers from our region, as our

level of development mustcatch up with that of richer EUmembers. We see this as a fun-damental principle of solidarity,a vehicle for the developmentand integration of the wholeEuropean Union.

From which Western countriesand interests are you lookingfor support in the battle of thebudget?It is not so that a particular

country has only one interest.When the Czech PhilharmonicOrchestra performs it plays var-ious instruments, so in lookingfor support in conducting ourpolicy we too have to use vari-ous instruments. While the pol-icy of German ChancellorAngela Merkel is to make cutsin the next budget, there arepowerful economic groups inGermany that have an interestin preserving the EU’s cohesionpolicy, as we do.

This policy means a lot forGerman business, which investsheavily in Poland, as well as forthe Czech Republic and otherCEE countries. German busi-nesses want to see infrastruc-ture improved in eastern coun-tries in which they invest, sothey will exert pressure toensure the next EU budget iskept at an adequate level.

We have to play instrumentsthat could help us obtain sup-

port from countries such asGermany, Austria and someScandinavian countries, whichinvest a lot in our region andtherefore have an interest inseeing money transferred in thenext EU budget to our part ofEurope. Among other things,this money will be used toimprove transport infrastruc-ture in CEE. The Europeaneconomy is interconnected inall aspects and the economicinterests of EU members aresometimes stronger than thepolitical calculations of theirgovernments.

To what extent has the financialcrisis in Europe affected theCzech economy, where mostbanks are in the hands ofWestern owners?Our economy is heavilydependent on exports, so cer-tain elements of the crisis havebeen imported to the CzechRepublic. But generally we aremanaging to get through thecrisis: our GDP growth is posi-tive and we hope that it willamount to 2.02 percent nextyear.

The Czech National Bank iscarefully monitoring our bank-ing system, which, many years

ago, was privatized in full andsold to foreign banks. Now thebranches of those banks in ourcountry are doing better thantheir foreign parent companiesand, for instance, the CzechCommercial Bank has the bestresults in the whole [SociétéGénérale] Group.

The Czech government did notsign the European fiscal treaty,as Poland did, making you theonly member apart from theUK not to sign. What are yourreasons for that decision?We are not blocking anyonewho wants to sign the fiscalpact. The British announced atthe very beginning their objec-tions to the pact, we did it in adifferent way. We did not criti-cize the fiscal pact, we simplydid not sign it. We think that westill have time to adopt the euroand we are managing ourfinances just fine, so we do notneed EU institutions to moni-tor them. Our debt is onlyaround 40 percent of GDP andin principle we do not want any-one to control our finances justfor the reason that there is nowa financial crisis in the EU.

Do you expect coordination in

Jan Sechter, the Czech Republic’s ambassadorto Poland, talks to WBJ about the strategicpartnership between the two countries, theirtactical coalition for defending the next EUbudget and mutual economic relations

“The economic interests of EU membersare sometimes stronger than the political

calculations of their governments”

Professionally honed and targeted to a defined group, whether B2B or end-customers, each message is designed for maximum effectiveness.

Custom publishing is one of the world’s fastest-growing marketing tools, because it pinpoints – and achieves – corporate goals.

Popular custom publishing media: • print: magazines, enhanced catalogs, newspapers

• virtual: web services, newsletters, e-zines • interactive: social media

If you want to:• build loyalty and long-term customer relations

• acquire new clients• implement an integrated professional communication strategy

• build strong brand identity

Custom publishing is the perfect tool!

Custom publishing delivers specially tailored content

Valkea Media SA, ul. Elbląska 15/17, 01-747 Warszawa, tel. 22 639 85 69, e-mail: mlindholm@valkea.com, www.cp.valkea.com, www.facebook.com/valkeacp

APRIL 23-29, 2012 IINNTTEERRVVIIEEWW www.wbj.pl 9

the future between the CzechRepublic and Poland in settinga time for both our countries tojoin the euro zone?In the Czech Republic we donot have a set date for joiningthe euro. It is natural thatCzech and Polish banks cooper-ate with each other and we arelooking for close coordinationof our countries’ activities onfinancial markets. So it is a logi-cal conclusion that we will alsocoordinate further steps. Butthe matter of joining the euro isa political decision. We knowwhat happened in Slovakia,which did not meet the real – Iam not talking here about for-mal – conditions for joining theeuro. The political ambitionsfor it joining outweighed a real-istic assessment of the situation.

Slovakia joined the eurozone and, after some initial tur-bulence, is managing relativelywell in comparison with someother countries, but every caseis different. When I take a lookat the scope of Czech-Polisheconomic and trade relations,and the size of our mutualinvestments, I see a need forharmonizing our decision andtiming when it comes to joiningthe euro zone, with this basedon a cool-headed assessment.

The trade turnover between ourtwo countries has risen five-foldover the last 10 years. What arethe main reasons for this spec-tacular growth?We are pleased to see such aspectacular development of ourmutual trade. The value of ourtwo countries’ current tradeturnover is €14 billion, with theCzech Republic having a smallsurplus. Poland is our seventh-largest trade partner, while weare Poland’s sixth-largest. Oureconomies are complementaryand this is reflected in the factthat we make mutual invest-ments.

Our production portfolioscomplement each other andour final products compete verylittle in foreign markets, whilewe cooperate in production. Agood example of this is our jointinvestment and production in

the car industry. A consolida-tion of the Central and EasternEuropean market is currentlyunderway, in which Czech andPolish firms are playing animportant role. Their positionin the region is growing andthey are better prepared for fur-ther expansion to the east andsoutheast.

Who are the biggest Czechinvestors in Poland and thebiggest Polish investors in theCzech Republic?Our biggest investors are in thePolish coal and energy sectors,led by our giants – CEZ andEPH. We also have a number ofconstruction firms and compa-nies specializing in renewableenergy operating in Poland, aswell as firms from a range ofother sectors. Poland’s biggestinvestor in the Czech Republicis PKN Orlen, which has beenpresent in the market for sixyears and now operates gas sta-tions under its own brand.There are also Polish investorsin the Czech food industry, suchas Mlekovita and Mokate.

How does the Czech Republic’sconnection to the Nord Streamgas pipeline shape its energypolicy?We have sold our whole gas sec-tor to German company RWE,so it cannot be said that theCzech Republic has joined theNord Stream pipeline, becauseit is through RWE that gas fromNord Stream will come to ourcountry. Our state has no sharesin Nord Stream. We are tryingto diversify our supplies, sourc-ing gas from Russia through theYamal pipeline and gas fromthe Nord Stream pipeline. Thisstrengthens our position [andis] due to our government’sdecision to liberalize gas sup-plies and to have both privatesuppliers and recipients of gas.

Yet you still use Russian gas …But we buy gas from the pri-vate German firm RWE, andits deal with Nord Stream isnot our problem. Twenty-fivepercent of our gas comes fromNorway. So having two suppli-

ers makes us much lessdependent and our gas situa-tion is better than it used to be.Our energy policy is independ-ent from our politics, so ourenergy security is not prone tothe influences of current poli-cy. We want to be moredependent on the market andless dependent on geopolitics.We know that it works … [and]we believe in having the mar-ket system separated fromgeopolitics. And we think thatsuch a solution is possible inEurope. For this reason theCzech Republic and Polandcontinue to be very activewithin the European Union inpromoting the liberalization ofenergy policy, making energysuppliers act transparently andaccording to the rules of themarket. We want energy secu-rity for all EU members.

How do you see the situationdeveloping now that Poland hasvetoed EU proposals to increaseCO2 emissions reduction tar-gets? What is your country’sstance on the issue?The Czech Republic is againsta drastic reduction of CO2emissions in such a short peri-od of time. We are in the samesituation as Poland: in someregions we have 100 percentdependence on coal for energyproduction. Unfortunately,the Danish presidency of theCouncil of the EU and the EUCommission did not want toagree with the Polish positionthat such restrictive EU policy[on CO2 emissions reduction]would harm countries whoseeconomies are dependent oncoal. We think – like Poland –that it is an effort to removefrom the market resourcesthat help our economies com-pete.

Our two countries are notquestioning the long-term EUaim of reducing carbon emis-sions, but climate protectionwill be the subject of global dis-cussions in 2015. So, while ourminister of environment didnot join the veto, we opposethe isolation of Poland by oth-ers. ●

SH

UT

TE

RS

TO

CK

Combining the most in-depth social media knowledge with the sophisticated insights of consumer behavior

*Attention USA clients

www.valkea-attention.com

don’t think so.But these companies

is just a fad. Maybe social media

*

MMiissssiillee sshhiieelldd rreedduuxx

APRIL 23-29, 2012 OOPPIINNIIOONN && AANNAALLYYSSIISS www.wbj.pl 11

Andrew A. Michta

S aving the euro, say the sages ofthe global economy, requiresradical steps. The OECD

recently called for a large Europeanfirewall – a mega-bailout fund fortroubled governments and banks.Others argue for integrating taxes andborrowing in the euro zone and shed-ding weak members, like Greece, thatstruggle with a strong currency.

But tall firewalls, fiscal union, orhomogeneity of membership are nei-ther necessary nor desirable. What isneeded are mechanisms that recog-nize and accommodate differences,rather than new top-down efforts toimpose uniformity.

Not by treaty aloneAll governments, even Germany’s,tend to spend more than they tax, andto hide shortfalls using accounting

sleight-of-hand. Treaties alone do notinduce fiscal virtue. The expectationthat all euro-zone countries wouldobey rules aimed at capping theirbudget deficits was the common cur-rency’s foundational fantasy.

Countries cannot get overlyindebted on their own. Excessive bor-rowing by European governmentsrequired lenders who overlooked thefact that sovereign debt is in manyways similar to, and in some casesworse than, unsecured private debt orjunk bonds. Governments provide nocollateral and offer no covenants torestrain profligacy. As the Greekdebacle has shown, governments donot pay penalties for fraudulentaccounting. There is neither a legalprocess for forcing a state to pay offcreditors, nor a legal venue for debtrenegotiation.

Purchasers of sovereign debt,therefore, should be extremely care-ful – either shunning spendthrifts ordemanding higher interest rates tooffset greater risk. Making excessiveborrowing expensive or impossiblewould cap deficits, treaty or no treaty.

Unfortunately, banks enabledexcessive borrowing by reckless gov-ernments by accepting interest ratesthat were only a bit higher than the

rates that more cautious govern-ments had to pay. The 2008 debacleshould have served as a sharpreminder of credit risk. Instead,banks increased indiscriminate pur-chases of government debt, and regu-lators unwittingly encouraged it bypermitting banks to hold sovereigndebt without capital reserves thatproperly reflected the risk. In fact,holding government debt helpedbanks to meet their liquidity require-ments. Not surprisingly, they loadedup on the highest-yielding bonds,ignoring whether the extra interestjustified the risks.

This indiscriminate lending nowjeopardizes the solvency of banksworldwide. Yet the official responsehas been more willful blindness todifferences between dodgy and sounddebt. The European Central Bankhas been lending to banks withoutregard to the creditworthiness oftheir government-bond holdings,thereby accumulating debt thatthreatens its own solvency.

Bailout funds have been createdto buy troubled debt. But, while theirpurchases have temporarily boostedasset prices, they won’t change thereality of over-indebtedness.

The “more integration” camp

wants European governments toguarantee each other’s debts explicit-ly. Such schemes could eliminate riskand interest-rate differentials; how-ever, while some governments are inrelatively good shape, their resourcesare not infinite.

A bad betStraining these governments’finances in the hope of restoring mar-ket confidence is a bad bet. More-over, any meaningful fiscal union is anon-starter. Handing revenues overto a single fiscal authority is unap-pealing to many Europeans.

According to French PresidentNikolas Sarkozy, “There cannot be asingle currency without economicconvergence.” Yet the dollar hasserved the US as a medium ofexchange for nearly 150 years, despitehuge regional differences between,say, Silicon Valley, the Rust Belt, andthe Oil Patch. And dollars are widelyused in domestic transactions inplaces far outside the US, such asRussia and Israel.

Differences in the circumstancesof individuals and businesses withinand across countries are unavoidable.It behooves all, whether they arestruggling or soaring, and whether

they are near or far, to use a commonmedium of exchange to trade witheach other. Like standardizedweights, currencies are supposed tocalibrate and bridge, not eliminate,differences. The Greek economy wasnot “unfit” to join the euro in 1999,just as no one is too heavy to beweighed in kilograms.

That is why shrinking the eurozone to exclude weak membersreflects another unwarrantedpredilection for uniformity. Govern-ments, after all, can rarely overbor-row without access to internationalcredit. Indiscriminate lending – notthe end of the drachma – saddledGreeks with unbearable debt. Andexiting the euro will neither reducethe burden nor erase German andFrench bank losses.

The least awful solution requiresan honest reckoning: writing downdebts that cannot be repaid and recap-italizing insolvent banks. Country-by-country and bank-by-bank, the goodmust be disentangled from the bad. ●

Amar Bhidé is a professor at TuftsUniversity’s Fletcher School of Law

and Diplomacy and the author of“A Call for Judgment.”

Copyright: Project Syndicate, 2012.project-syndicate.org

“The Greek economy wasnot ‘unfit’ to join theeuro in 1999, just as noone is too heavy to beweighed in kilograms”

The disclosure in early April thatNorth Korea was preparing along-range rocket launch and

possibly an underground nuclearbomb test put ballistic missile defense(BMD) where it belongs: squarelyatop the transatlantic agenda.Although we eventually learned thatthis particular missile launch was afailure, Pyongyang’s determination toproceed has underscored the endur-ing nature of the threat inherent in theproliferation of ballistic missile tech-nology.

A powerful undercurrentMissile defense has been a powerful, ifnot much publicized, undercurrent inUS-European relations ever since USPresident Barack Obama abandonedthe Bush administration’s plan todeploy radar in the Czech Republicand missile interceptors in Poland,planning instead for a new phasedadaptive approach. The decision toscrap the original plan was then wide-ly interpreted in Central Europe as aconcession tied to the US reset withRussia.

This region views missile defenseas not just a matter of technical feasi-bility or geostrategic considerations,but as an important symbol of thestate of relations with the United

States. But, in reality, BMD is a globalstrategic concern today – and it shouldbe treated as a keystone for rebuildingthe flailing US-European relationship.This is an opportunity to strengthentransatlantic relations that should notbe missed.

The recent incident in whichObama, during a visit to South Korea,was overheard (via an open micro-phone) telling Russian PresidentDmitry Medvedev that he would havemore “flexibility” on missile defenseafter the election, has inflamed con-cerns along NATO’s Eastern periph-ery. Clumsy as it was, this open micmoment confirmed what should havebeen a given: that the remainder ofthe year will be a time in which theUnited States and Russia will negoti-ate a host of technical and politicalissues against a backdrop of broadersecurity concerns. Regrettably it alsopushed the BMD debate back into aregional context when this transat-lantic conversation needs a global per-spective.

Compelling incentiveWith new missile threats arising asmore missile-capable states join theclub (in 1972 only nine states ownedballistic missiles; today there are morethan two dozen) there is a compelling

incentive to move toward implement-ing an effective BMD system along-side our European allies. At the sametime, the politics of BMD deploymentin Europe not only incite Russianopposition but also continue to unfoldagainst the backdrop of a changingstrategic environment in which theUnited States seeks to rebalance itsinterests in the Pacific.

What is missing in Europe is thelarger context of the issue: the need tomove beyond the residual Russiadimension and the collective responseto the threat of nuclear-armed Iran,linking it firmly to the transatlanticsecurity agenda for the comingdecade.

The current European debate onUS missile defense overlooks the factthat the US is hardly the only player inthe game, with Russia, India, andIsrael among the most active. Mostobjections to ballistic missile defensehave come, to date, from Russia,China, and some US analytical circles.

In Europe, Russia’s opposition tomissile defense continues to be therecurrent theme. Moscow has pushedback on BMD deployments in theregion with a mixture of technicalarguments and strategic objections;clearly, prestige is also at issue.Arguably the least credible of Russia’s

objections is the argument that BMDdeployment will inevitably lead todestabilization, leading to expansionbeyond the initial tasks. The geopoliti-cal argument is essentially aboutEuropean basing of radar and inter-ceptors, with the perceived loss ofprestige that comes with it.

Come NovemberShould Obama be reelected inNovember, it is uncertain whetherWashington will go ahead with mis-sile defense deployment absent anagreement with Russia in 2013, orback away from the project. Hisopen-microphone gaffe suggests thatthe administration might be willingto conclude a short-range missileagreement with Russia by offeringconcessions on missile defense inexchange.

Hence, unease in Europe on mis-sile defense is fueled by the realizationthat 2012-13 could be decisive for thefuture of a revised European missiledefense plan. The administration’srecent announcement of a “strategicpivot” to Asia has added to the dis-tance across the Atlantic and concernsthat the United States may now be lesscommitted to BMD deployment inEurope.

Instead, the unease on the future

of ballistic missile defense should re-energize the transatlantic conversa-tion. It should be the starting point fora public debate on how BMD systemsdeployed to Europe need to interlockwith the larger US system to addressthe truly global threat that is emerg-ing.

The United States and its Euro-pean allies have argued deterrence vs.defense since Ronald Reagan’s 1983Strategic Defense Initiative speech;that transatlantic debate should nowtransition firmly from “whether” to“how.” ●

Andrew A. Michta is a Senior Transat-lantic Fellow at the German Marshall

Fund of the United States and Directorof the GMF Warsaw Office.

Copyright: German Marshall Fundof the United States.

gmfus.org

“The years 2012-13could be decisive for

the future of a revisedEuropean missile

defense plan”

DDeebbtt rreecckkoonniinngg ffoorr EEuurrooppee Amar Bhidé

CO-MANAGING EDITOR

GARETH PRICE(GPRICE@WBJ.PL)

CO-MANAGING EDITOR

ALICE TRUDELLE(ATRUDELLE@WBJ.PL)

POLITICS EDITOR

REMI ADEKOYA(RADEKOYA@WBJ.PL)

REAL ESTATE EDITORADAM ZDRODOWSKI(AZDRODOWSKI@WBJ.PL)

COPY EDITORDAVID INGHAMJOURNALISTIZABELA DEPCZYK

CONTRIBUTORSE. BLAKE BERRYEWA BONIECKABRENDAN MELCK

COLUMNISTSADAM NARCZEWSKIANDREW NAWROCKI

PRODUCTION MANAGERPIOTR WYSKOK

GRAPHIC DESIGNER¸UKASZ MAZUREK

CARTOONSPIOTR WYSKOK

MARKETING &SALES

AGNIESZKA BREJWO MARKETING &SALES DIRECTOR(ABREJWO@WBJ.PL)

MAGDALENA KARPI¡SKA(MKARPINSKA@WBJ.PL)

AGNIESZKA KUCZY¡SKA(AKUCZYNSKA@WBJ.PL)

MARTA CZESZEJKO-SOCHACKA(MCZESZEJKO-SOCHACKAKA@WBJ.PL)

KAROL KOSIOREK(KKOSIOREK@WBJ.PL)

PR & MARKETING SPECIALIST NATALIA ROGACZEWSKA(NROGACZEWSKA@WBJ.PL)

SUBSCRIPTIONS MANAGERAGNIESZKA MICHALIK(AMICHALIK@VALKEA.COM)

PRINT & DISTRIBUTION COORDINATORKRZYSZTOF WILI¡SKI(DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALISTJOANNA RASZKA(JRASZKA@VALKEA.COM)

PUBLISHER VALKEA MEDIA SA EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) MANAGING DIRECTOR MONIKA STAWICKA

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

APRIL 23-29, 2012CCOOVVEERR SSTTOORRYY12

Polish airports

busyThe number of

passengers at Polish

airports increased by

some 10% y/y in the first

quarter of 2012,

according to data from

the Association of

International Airports.

This compares to a 3.2%

traffic increase in the

same period for the

whole of Europe. Airports

in Poland served some

4.4 million people in Q1,

almost 400,000 more

than during the same

time period of last year.

Bingo Airways

launch

A new Polish carrier

specializing in charter

flights, Bingo Airways,

will begin flying from

Poland in May, reported

Dziennik Gazeta Prawna.

The company’s first flight

is scheduled to take place

on May 10. Bingo Airways

hopes to transport some

300,000 passengers in

2012. Destinations will

include Turkey, Tunisia

and Egypt.

Poles seek

work in

Germany As many as 80,000 Poles

could move to Germany

this year in search of

employment, reported

Wyborcza.biz, citing a

report by research firm

Work Service. Since

Germany opened its

labor market to Poles in

May 2011, 45,000 people

have left Poland to find

work there.

Warsaw hotel

market up

New investments will

bring some 3,000 new

hotel rooms to Warsaw

in the next few years,

reports Rzeczpospolita.

The capital still has

some way to go to catch

up with other capital

cities in the region.

Indeed, at the start of

2012, Warsaw was home

to 82 hotels with some

10,600 rooms, compared

to about 17,600 rooms in

Budapest and 30,000 in

Prague. ●

www.wbj.pl

www.belgium.pl

Aerospace industry

Flying highPoland’s aviationindustry hassucceeded in turningthe global economiccrisis into anopportunity for growth

A rare sense of optimism isemanating from Poland’s avia-tion cluster in southeasternPoland. While other sectors,hit by months of economic tur-moil in Europe, tighten theirbelts, the Polish aviation sectoris growing.

“The aviation sector hasnot slowed down in Poland[during the global crisis], onthe contrary we have had a lotof investment into the sector,”Andrzej Rybka, director of theAviation Valley Association,told WBJ. The organization,based in the southeastern Pod-karpackie voivodship, groupstogether over 90 percent of thesector’s production andemployment.

“The market for aviation israther stable,” added Micha∏Tabisz, spokesperson for PZLMielec, the biggest Polishmanufacturer of aircraft.

The combined exports ofPolish companies in the sectorreached around $1.5 billionlast year, and their worldwidereputation is on the rise.According to the Polish Infor-mation and Foreign Invest-ment agency (PAIiIZ), almostevery passenger aircraft in theworld has at least one partmade in Poland.

“Polish-based aviationcompanies are considered tobe among the best suppliersfor the global aircraft industry.We can offer the same stan-dard of service and products atlower prices than Westerncompanies,” said AdamMa∏ecki, deputy director ofthe foreign investment depart-ment at PAIiIZ.

Radical transformationThe Aviation Valley clusterwas launched in 2003 as thebrainchild of Marek Darecki,CEO of WSK “PZL-Rzeszów.” The firm, a Polishproducer of aviation enginesand components, was sold toAmerica’s United Technolo-gies in 2002.

In less than a decade, thecluster has grown from a collec-tion of 18 companies to 90companies, employing around23,000 people. With a densenetwork of international anddomestic airports, the Techno-logical Park of Aircraft Indus-try in nearby Bielsko, andstrong links with research car-ried out at The Centre ofAdvanced Technology “AERO-NET - Aviation Valley,” thecluster has managed to attractinternational players such asAvio, EADS, GE, Goodrich,Hamilton Sundstrand, His-pano-Suiza, MTU Aero En-gines, Pratt & Whitney and VacAero.

The transformation of thesector is even more spectacu-lar when one looks back fur-ther in time. From the dol-drums of the years followingthe end of the Soviet Union,when Polish aviation compa-nies lost, almost overnight,what was by far and away theirmain market, to the privatiza-tion of the country’s largestaircraft and helicopter produc-ers, the transformation is

almost total. “In 1989, when the eco-

nomic transformation began,80 percent of Polish aviationcompanies were exporting tothe East. We had to changeour focus to the West

overnight – today, 95 percentof the production of the Polishaviation industry is sold to theWest, with a value of $1.5 bil-lion annually,” said AndrzejCzarnecki, spokesperson forWSK “PZL-Rzeszów.”

PZL Mielec, the biggestPolish manufacturer of air-craft, was acquired by Ameri-can Sikorsky Aircraft Corpo-ration in 2007. “Since Siko-rsky Aircraft invested in usfive years ago, we have tripled

Brendan Melck, Izabela Depczyk

CO

UR

TE

SY O

F P

ZL

MIE

LE

C

PZL Mielec, manufacturer of the S-70i Black Hawk helicopter, tripled its sales over the last five years

Poland’s aviation sector: a history“What makes Poland so attractive is the accessto highly qualified and skilled professionals.Poland is proud of 100 years of aviation histo-ry and over 80 years of aviation industry,” saidAdam Ma∏ecki, deputy director of the foreigninvestment department at PAIiIZ.

The long and eventful history of the Polishaviation industry started in 1910 with theestablishment of Warszawskie TowarzystwoLotnicze Awiata, which began by producingthe French Farman-IV aircraft under license.

During the inter-war years, Poland hadregained its independence and the develop-ment of the aviation industry accompaniedthe creation and development of the PolishAir Force. In 1928, the state aviation worksPaƒstwowe Zak∏ady Lotnicze (PZL) wasestablished. The state-owned firm began pro-ducing Polish-designed fighter planes, whichgained popularity as export products as well.Shortly before World War II the Polish avia-tion industry began to be established in what

is now the Podkarpackie voivodship. In 1937-39, Paƒstwowe Zak∏ady Lotnicze WytwórniaP∏atowców was established in Mielec – thiswould evolve into today’s PZL Mielec andWytwórnia Silników in Rzeszów – now WSK“PZL-Rzeszow.”

In the period following World War II,when Poland was under communist rule, thecountry became a leader in the aviation sectoramong Warsaw Pact countries. It produced jetfighter planes and transport helicopters, aswell as civil aircraft. The collapse of the Sovi-et Union – to which 90 percent of the aircraftproduced in Poland were being sold – had aprofoundly negative effect on the industry. Asmany as half the workforce in state-ownedcompanies in the sector lost their jobs.

Over the last 20 years, the wave of privati-zation and acquisitions by multinationals hasnot only revived the larger, former stateenterprises, but has also given the impetus tosmaller, domestic start-ups. ●

APRIL 23-29, 2012 CCOOVVEERR SSTTOORRYY www.wbj.pl 13

our sales and increasedemployment by 40 percent –that’s 700 new jobs,” saidMicha∏ Tabisz, spokespersonfor PZL Mielec.

“Last year was a uniqueyear for us because welaunched the mass productionof the S10i Black Hawk [heli-copter]. The company is grow-ing, we ended last year with agreat result, and this year weplan to grow even more,” headded. PZL Mielec is seekingnew markets for the civilianversion of the M28 aircraft,and also plans to take part in ahelicopter tender for the Pol-ish Army.

Most recently, in 2010,Anglo-Italian AgustaWestlandacquired a majority stake inPZL-Âwidnik, the biggest heli-copter manufacturer inPoland, and plans to investaround z∏.300 million in itsÂwidnik factory.

An established leader“Thanks to privatization, thePolish aviation industry hasreceived a massive injection ofnew technology,” explainedMr Czarnecki. “As a result, wemade a technological leap andbased on our experience ofworking on these transferredtechnologies, we have beenable to start our own innova-tive development, built on thisfoundation.”

As a direct result of invest-ment by multinationals andthe development of produc-

tion in the country, smaller,local companies are winningcontracts to supply parts. Theyform the core of the AviationValley cluster, and are animportant strategic element ofthe development of the sectorin Poland. As an example, pro-duction in Mielec of therenowned Black Hawk utilityhelicopter has resulted inorders for 50 local suppliers,according to a recent report by

business daily Puls Biznesu.Rather than merely churn-

ing out parts and finishedproducts for multinationalcompanies, smaller, locally-owned firms are forming aplatform for the developmentof Polish innovation in the avi-ation sector.

This has led companies inthe Polish Aviation sector tosuccessfully land long-termcontracts that have sustainedthem throughout the crisis.“The crisis has not affected theaviation sector so much. The

projects which we have beenexecuting are long-term proj-ects, budgets for which havebeen collected over severalyears’ time,” said PZLMielec’s Micha∏ Tabisz. “Manyof the airplanes which arebeing produced now havebeen ordered well in advance,about two to three years ago,”said Aviation Valley’s AndrzejRybka.

But the sector is alsoattracting new investments. InJanuary 2012, the NationalCentre for Research andDevelopment (NCBiR), anagency within the Ministry ofScience and Higher Educa-tion, announced a z∏.300 mil-lion investment in the devel-opment of innovative tech-nologies within the aviationsector over 2013-17. Theinvestment is planned with astrong commercial focus, theNCBiR having been createdas a platform between the sci-entific and business commu-nities. The program will becarried out in association withthe Polish Aeronautical Tech-nology Platform (PPTL), ofwhich the Aviation ValleyAssociation is a member. Theprivate sector is due to pro-vide around z∏.200 million forthe project, valuing the totalinvestment at around half abillion z∏oty – money that’sneeded to push forward R&Din an industry for which inno-vation is essential.

Indeed, it’s estimated that

the industry’s share of Poland’stotal R&D spending exceeds 5percent, while leaders in thesector spend between 10 to 20percent of their total revenueson R&D, a figure that has noequivalent in any other Polishindustry.

Competitive edgeAs with other successful sectorsof the Polish economy, the avia-tion industry is relying on lowerlabor costs and the presence ofa highly-educated workforce toattract investment.

“We have the experienceand knowledge of our workers,their comparatively low laborcosts, as well as the business,political and macroeconomicenvironment in Poland which

gives us the edge – a Polishworker is 20 percent more pro-ductive than a worker from theWest, although he still earnsthree times less than hisWestern counterpart,” MrCzarnecki explained.

The economic crisis has putpressure on multinational cor-porations to reduce costs,inclining them to seek “low-cost” investment destinations.And from this perspective,according to industry players,Poland’s aviation sector is moreattractive than that of emergingeconomies such as Brazil,China and India.

“Poland is one of the bestregions for the aviation sector.We have a great cost-to-qualityratio. Producing here is com-

paratively cheaper than othercountries, while the quality isjust as good. We have very highstandards, high ethics and highperformance,” said Mr Rybka.

“Paradoxically, the globaleconomic crisis is helping Avia-tion Valley and the Polish avia-tion industry, because it putsthe emphasis on reducing coststhroughout the world, andPoland’s aviation industry oper-ates under optimal conditions,”added Mr Czarnecki.

Thus it seems that in a peri-od of global economic uncer-tainty, the competitiveness ofPoland’s aviation industry isactually strengthening, therebygiving the skills and innovative-ness of its workers a greaterchance to shine. ●

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

The PZL M28 is one of Poland’s aircraft exports

“From thedoldrums of the

years following theend of the Soviet

Union ... thetransformation is

almost total”

APRIL 23-29, 201214 www.wbj.pl EENNEERRGGYY IINN FFOOCCUUSS

Energy

PGE to invest z∏.14.6 billion in offshore wind farmsThe company wantsto build three farmswith a total capacity of3,450 MW

Poland’s Ministry of Transport,Construction and MaritimeEconomy last week grantedpermission to energy providerPolska Grupa Energetyczna(PGE) to build three offshorewind farms in the Baltic Sea.The investments are valued at atotal of z∏.14.6 billion.

The wind farms will have acombined capacity of 3,450MW, PGE spokesperson

Micha∏ Kucaj confirmed toWBJ. A detailed geotechnicaland environmental study of thethree sites is now planned priorto the start of construction.

PGE had been waiting forthe Ministry of Transport’s deci-sion since it applied for buildingpermits back in October 2011.Prior to the announcement thatthe company’s application wassuccessful, only one other off-shore wind turbine project,which was put forward by Polishbillionaire Jan Kulczyk’s com-pany Kulczyk Investments, hadpreviously been approved by

the ministry.In total the ministry has

received 50 applications tobuild wind farms, with powercapacities of from 750 MWupwards. Polish daily Rzecz-pospolita reported that the Min-istry of Transport will grant fiveoffshore building permits intotal, with PKN Orlen, Poland’slargest oil refiner, soon to joinKulczyk Investments and PGEin gaining permission.

The wind energy market isset to play an increasingly influ-ential role in the future asPoland is required by the EU to

reduce CO2 emissions. A “Green Growth” report

launched last week by the Euro-pean Wind Energy Associationestimated that the wind-energysector contributed €32 billion tothe EU’s €12.3 trillion GDP in2010. According to the report,the figure is likely to triple by2020.

The report also predictedthat as many as 795,000 Euro-peans could be employed in thesector by 2030, a significantincrease on the nearly 240,000employed in 2010.

DDaavviidd IInngghhaamm

Shanghai

Electric

shortlisted Chinese energy equipmentmaker Shanghai ElectricGroup has been shortlisted in atender to build and manage acoal-fired power plant in theSilesia voivodship in coopera-tion with Polish coal firm Kom-pania W´glowa, newspaper Dzi-ennik Gazeta Prawna reported,citing sources close to the talks.

Joanna Strzelec-¸obodziƒs-ka, CEO of KompaniaW´glowa, said she could notconfirm the report, saying onlythat two companies had beenshortlisted to carry out the proj-ect, both of them Asian. Fiveentities had submitted offers totake part in the tender.

Ms Strzelec-¸obodziƒskaadded that the company isnow selecting the design forthe new facility, with the con-tract expected to be ready bythe end of the year. Kompa-nia W´glowa, she said, wouldlike to hold a stake sized nogreater than 49 percent in theinvestment, in order to ensurethat the company shoulders asmaller financial burden thanits foreign partner.

The planned 900 MW-capacity plant would be con-structed on the site of the now-shuttered Czeczott coal mine.The entire project would costz∏.5 billion and energy produc-tion would launch at the facilityin 2018. The block is expectedto produce 5-7 terawatt hoursof energy per year, or up to 4.5percent of Poland’s currentannual electricity production.

As WBJ went to press, thenext round of talks betweenShanghai Electric Group andKompania W´glowa were dueto take place this week, duringthe visit to Poland of ChinesePremier Wen Jiabao.

Shanghai Electric Group,one of China’s largest energy-equipment manufacturingcompanies, produces thermaland nuclear power units,machine tools and power dis-tribution equipment.

GGaarreetthh PPrriiccee

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

LLOOKKAALLEE IIMMMMOOBBIILLIIAAW 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 l y s u p p l e m e n t o n r e 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 • APRIL 23-29, 2012, LI 17/16

Elbfonds buys

land for new

shopping mall

Developer elbfonds

Development has

acquired 43,940 sqm of

land in Kutno, ¸ódzkie

voivodship, on which it

plans to build a large

retail project.

Construction on the mall

is scheduled to launch by

the end of this year.

Located on Kutno’s ul.

KoÊciuszki, the planned

shopping center will

provide approximately

17,000 sqm of leasable

space. The project will

feature a parking lot for

about 550 cars and its

tenants will include a DIY

store and a grocery

supermarket.

Work on

Galeria D´biec

to launch in H2Developer RED Real

Estate Development

plans to launch

construction on its

Galeria D´biec shopping

center project in Poznaƒ

in the second quarter of

this year. The two-storey

investment will deliver

9,000 sqm of space. The

Galeria D´biec scheme

will be developed next to

the RED Park housing

estate which the firm has

been building since

October 2011. Both the

mall and the first phase

of the RED Park

development, which will

deliver 130 apartments,

are scheduled to be

completed in the third

quarter of 2013. ●

Koneser revitalization . . . . . . .15

Matexi’s plans . . . . . . . . . . . . . .15

Immobel-Griffin homes . . . . . . .15

RealGreen conference . . . . . . .16

CEEQA 2012 . . . . . . . . . . . . . . . . .16

Neinver with BREEAM . . . . . . .16

Property-related stocks . . . . . .16

New Ghelamco projects . . . . .17

In this issue

1716

There is a host of sustainabledevelopments on their way inthe CEE region

Developer Ghelamco Poland isworking on a number of newoffice projects in the Polish capital

Revitalization

BBBBII DDeevveellooppmmeenntt ttoouuttss CCeennttrruummPPrraasskkiiee KKoonneesseerr pprroojjeecctt iinn WWaarrssaawwThe company plans tolaunch constructionon the residential partof the scheme laterthis year

Warsaw Stock Exchange-listeddeveloper BBI DevelopmentNFI last week presented itsvision of the historical Konesersite in Warsaw’s Praga district.The company plans to trans-form the former vodka distill-ery into a modern mixed-usecomplex within the next fewyears.

BBI Development NFIstarted construction on theproject in 2010. Since then, thecompany has revitalized thehistorical guardhouse andadministrative building ofKoneser – the structure hasbeen transformed into a mod-ern office facility that hasalready been fully commercial-ized.

Now, the developer plansto go ahead with the next phas-

es of the investment which willinvolve the development of atotal of approximately 70,000sqm of usable space on analmost five-hectare plot of landlocated on ul. Zàbkowska inWarsaw’s Praga Pó∏noc district.

“Our intention is to harmo-niously combine revitalizedhistorical buildings of the for-mer vodka distillery with mod-ern architecture inspired byindustrial motifs,” said Rafa∏Szczepaƒski, vice president of

the management board of BBIDevelopment NFI.

Altogether, the CentrumPraskie Koneser project willcomprise 330 housing units,22,500 sqm of retail space and22,000 sqm of office areas.

One of the historical buildingsis also expected to house adesign museum which willoperate under the aegis of theNational Museum in Warsaw.

The first units to be devel-oped will be three buildingswith lofts and soft lofts andretail space on the groundfloors, as well as one buildinghousing a restaurant. By theend of 2013, two buildings withoffice and retail space are alsoscheduled to be completed.

BBI Development NFIhopes to finish the whole Cen-trum Praskie Koneser schemein 2015. The company estimatesthe value of the investment atapproximately z∏.410 million.

Architects from Juvenes-Projekt, a subsidiary of BBIDevelopment NFI, are respon-sible for the architecturaldesigns of most of the build-ings in Centrum PraskieKoneser. The Bulanda, MuchaArchitekci and ARE studiosare also involved in the project.

AAddaamm ZZddrrooddoowwsskkii

CO

UR

TE

SY O

F B

BI

DE

VE

LO

PM

EN

T N

FI

BBI Development plans to change the former vodka distillery into a mixed-use complex

Belgian developer Matexi hasannounced the launch of itsfirst residential project in thePolish market. The company,which entered the country atthe beginning of last year, willbuild 50 housing units on ul.Górczewska in Warsaw’sBemowo district by the sec-ond quarter of 2013.

“We have been working veryhard over the last few monthsdeveloping two other projectswhich we will introduce ontothe market in upcomingmonths,” Mirek Bednarek,country manager at Matexi Pol-ska, said in a statement.

Matexi Polska has alreadyacquired new plots for future

projects in the Polish capital.The developer has secured asite in Warsaw’s Ursynów dis-trict on which approximately100 units will be built. Thecompany will apply for abuilding permit for thescheme by the end of 2012.

In the first quarter of thisyear, Matexi Polska, repre-

sented by CBRE, alsoacquired a plot of land in theBielany district where some5,000 sqm of residential spacewill be developed. The projectis at the design stage, withconstruction expected tolaunch within the next 12months.

One of the largest devel-

opment companies in Bel-gium, Matexi was founded in1945 and is active in areasincluding residential develop-ment and investment. In2010, the group sold 883houses and apartments andits turnover amounted to€247.6 million.

AAddaamm ZZddrrooddoowwsskkii

Matexi’s first Poland project, new land acquisitions

Developers Immobel Polandand Griffin Group haveannounced their first jointinvestment will be a residen-tial project located on ul.Kierbedzia in Warsaw’sMokotów district. Construc-tion on the scheme is sched-

uled to launch in the secondquarter of 2013.

A preliminary architectur-al concept of the planneddevelopment has been pre-pared by the Atelier 2Architekci studio. The con-cept calls for the develop-

ment of approximately 300housing units and points ofservice at the Kierbedzia site.

The ul. Kierbedzia invest-ment will be developed onone of seven plots thatImmobel Poland and GriffinGroup jointly acquired from

press distributor Ruch lastyear. Apart from Warsaw, theplots are in Kraków andGdaƒsk, and could see thedevelopment of a combined150,000 sqm of office, retailand residential space.

Immobel is a Belgian

developer that entered thePolish market in 2011. Grif-fin Group is currentlyinvolved in a revitalizationproject in downtown Warsawand in a residential schemein the city’s Wilanów district.

AAddaamm ZZddrrooddoowwsskkii

Immobel and Griffin announce first joint Polish scheme

CEEQA Gala

Colliers Internationalwins three awards atCEEQA 2012The 9th edition of theawards gala took placeat the WarsawMarriott Hotel

Last Tuesday’s 9th annual Cen-tral and Eastern EuropeanReal Estate Quality Awards(CEEQA) saw Colliers Inter-national take home threeawards, one for Property Man-agement Company of the Yearas well as two in the Agent ofthe Year category, for OfficeAgency and for Industrial andLogistics Agency. Jones LangLaSalle also won awards in theAgent of the Year category, col-lecting awards for Retail,Leisure & Residential Agencyand Capital Markets Agency.

Richard Hallward, CEO ofImagine Live Media, CEEQA’sorganizer, said he was happywith the turnout at the gala,which sent a positive message toinvestors in the sector.

“Given the uncertain eco-nomic conditions acrossEurope we were delighted withthe turnout at the event thisyear in number, geography andseniority, which reflects well onthe sector and sends a positive

note to investors about who weare as a sector, and where we’regoing in the future,” Mr Hall-ward said in a statement.

The CEEQA Gala dinnerwas hosted in the Warsaw Mar-riott Hotel. The awards cere-mony included entertainmentby Polish X-Factor finalist AdaSzulc and DJ group WetFingers, featuring vocalists NickSinckler and Ewa Jach, dancegroup Monsterbots, British sax-ophonist Lovely Laura andCanadian musician LindsayMartell.

CEEQA, established byImagine Live Media in associa-tion with the Financial Times in2003, recognizes outstandingbusiness achievements in thecommercial real estate sector in18 emerging European coun-tries, including the best realestate projects delivered duringthe past year in CEE and SEEcountries.

“CEEQA Industry Awardsand the CEEQA Gala play animportant role in presenting theemerging Europe’s real estatemarket internationally andattracting new investors into theregion,” CEEQA wrote in astatement. IIzzaabbeellaa DDeeppcczzyykk

Selected CEEQA winnersCompany awards:Developer of the Year:TriGranitInvestor of the Year: AtriumConstruction Company of theYear: StrabagProperty Management Com-pany of the Year: ColliersInternational

Agent awards:Agent of the Year (OfficeAgency): Colliers Interna-tionalAgent of the Year (Retail,Leisure & ResidentialAgency): Jones Lang LaSalleAgent of the Year (CapitalMarkets): Jones Lang LaSalle

Agent of the Year (Industrialand Logistics Agency): Col-liers International

Grand awards:Industry Professional of theYear: Barbara Topolska, Gen-eral Director Poland, Ger-many & France, NeinverGreen Leadership Award:Skanska Commercial Development EuropeBuilding of the Year: TheNational Stadium in WarsawLifetime Achievement Award:Richard Clare, Chairman ofEC Harris and CorporateSenior Vice President ofArcadis

APRIL 23-29, 2012LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl

Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value

on Apr 19 (z∏. mln)

BUDIMEX 83.85 -1.81 64.00 109.20 -22.65 25,530,098 2,140.70

CELTIC 12.95 -5.13 12.95 22.70 -34.46 34,068,252 441.18

DOMDEV 36.63 3.18 23.50 50.80 -21.06 24,670,397 903.68

ECHO 4.00 -0.74 3.05 5.55 -20.79 420,000,000 1,680.00

ELBUDOWA 111.00 -0.45 87.00 168.00 -30.41 4,747,608 526.98

ENERGOPLD 1.89 -0.53 1.81 4.00 -52.51 70,972,001 134.14

ERBUD 17.25 -4.33 14.65 38.70 -55.19 12,644,169 218.11

GANT 7.30 -5.07 5.85 14.09 -47.82 20,499,953 149.65

GTC 6.92 3.90 6.10 21.45 -66.87 219,372,990 1,518.06

HBPOLSKA 0.72 -15.29 0.70 2.35 -67.42 210,558,445 151.60

JWCONSTR 5.22 -10.00 4.36 15.50 -64.49 54,073,280 282.26

LCCORP 1.42 0.00 0.85 1.58 -10.69 447,558,311 635.53

MARVIPOL 8.10 -4.48 7.22 9.95 -3.34 36,923,400 299.08

MIRBUD 1.61 -12.02 1.61 4.14 -61.58 75,000,000 120.75

MOSTALWAR 12.35 -16.27 12.35 41.20 -70.38 20,000,000 247.00

MOSTALZAB 1.35 -3.57 1.07 2.89 -51.26 149,130,538 201.33

ORCOGROUP 14.36 -2.97 14.00 38.20 -58.50 17,053,866 244.89

PBG 30.50 -9.50 30.50 164.00 -81.95 14,295,000 436.00

PLAZACNTR 2.60 0.00 1.80 5.15 -44.44 297,174,515 772.65

POLAQUA 5.80 -3.33 4.53 18.93 -68.10 27,500,100 159.50

POLIMEXMS 1.05 -16.67 1.05 3.53 -69.91 521,154,076 547.21

POLNORD 13.50 -8.16 11.03 32.70 -58.42 23,798,439 321.28

RANKPROGR 13.77 -6.96 8.60 16.97 5.92 37,145,050 511.49

ROBYG 1.39 -7.95 1.04 2.10 -32.85 257,390,000 357.77

RONSON 1.06 3.92 0.77 1.58 -29.80 272,360,000 288.70

TRAKCJA 0.98 -8.41 0.65 3.53 -73.00 232,105,480 227.46

ULMA 65.85 0.08 57.00 88.00 -25.17 5,255,632 346.08

UNIBEP 5.60 -1.75 4.47 7.55 -26.61 33,927,184 189.99

WARIMPEX 4.05 -3.57 2.95 10.89 -61.35 54,000,000 218.70

ZUE 7.42 -1.20 5.07 12.85 -39.43 22,000,000 163.24

Property-related stocks

Sustainable building

GGrreeeenn ssoolluuttiioonnss ggaaiinniinnggggrroouunndd iinn PPoollaanndd,, CCEEEEMarket players aremore educated aboutsustainable solutions,but are still not surehow far they arewilling to go

A weak European economyhas not deterred propertyinvestors, developers andclients in Central and EasternEurope from going green.Indeed, it may have led to the

contrary: A massive numberof sustainable developmentsare currently underway in theregion, according to a newreport from agency JonesLang LaSalle.

Warsaw has by far thelargest pipeline among coun-tries in the region, witharound 400,000 sqm of greenbuilding space under con-struction. At this rate the Pol-ish capital will exceed Prague,currently the greenest city in

the region, in terms of volumeand percentage of sustainabledevelopments in its totalstock.

“We are creating a greenculture, having a much broad-er discussion than a few yearsago. Tenants are also bettereducated,” said Nicklas Lind-berg, managing director forCEE at Skanska CommercialDevelopment Europe, speak-ing at the RealGreen Sympo-sium & Fair last week.

Green leadersSelection of the largest existing certified office developments in the CEE

Country City Building Developer / Owner Total Area Certification Type Rating

Poland Warsaw Rondo 1 HOCHTIEF Development / MGPA 57,000 LEED Gold

Poland Warsaw Mokotów Nova Ghelamco 40,000 BREEAM Target Very Good

Czech Republic Prague âSOB Skanska / âSOB 37,700 LEED Gold

Poland Warsaw Trinity Park III Ghelamco / SEB Investment 32,000 BREEAM Very Good

Hungary Budapest Gateway Ablon 29,200 BREEAM Very Good

Romania Bucharest Swan Office & Technology Park Chayton Capital 29,100 BREEAM Very Good

Czech Republic Prague BB Centrum – Filadelfie Passerinvest 28,200 BREEAM Good

Source: Jones Lang LaSalle

BREEAM certificate for Neinver’s

Futura Park Kraków mall

Developer Neinver has com-pleted the process ofBREEAM certification for itsFutura Park Kraków retailproject in southern Poland.According to the company, thescheme is the only retail devel-opment in the country to havesecured a BREEAM certifi-cate with a “very good” mark.

“Neinver’s strategy envi-sions the development of newretail facilities in line with thestandards of sustainable build-

ing,” Rafa∏ El˝anowski, invest-ment director at Neinver Pols-ka, said in a statement.

He added that the compa-ny would continue to employinnovative energy-saving tech-nologies in its future projects.

Located in Modlniczka nearKraków and opened in Octo-ber 2011, the Futura ParkKraków project combines aretail park with an outlet cen-ter. The development compris-es a total of 44,000 sqm of

space which houses more than140 stores and points of service.

Neinver has been presentin the Polish market since2000. The company’s complet-ed projects in the countryinclude Galeria Malta in Poz-naƒ and Futura Park inWroc∏aw. Currently, the devel-oper is building a major invest-ment in Katowice that willinclude a new railway station,a mall and offices.

AAddaamm ZZddrrooddoowwsskkii

There is a strong case forbuilding green, participantssaid. It saves money, reducesinvestors’ risk, and demon-strates organizational leader-ship.

But experts also agreedthat market players are notnecessarily certain how farthey want to follow the trend.One obstacle is that very fewgovernment incentives cur-rently exist to promote greendevelopment in the region.

Another is that it’s mucheasier to build sustainablythan to make existing build-ings sustainable. “The chal-lenge is with existing buildingsfrom the 1970s all overEurope. In many cases thecost of retro-fitting is higherthan their actual value,” saidHadley Dean, managing part-ner for Eastern Europe atColliers International.

Some are nevertheless tak-ing up the challenge, such asRondo 1 in Warsaw. The60,000 sqm building, built in2006, obtained LEED Goldcertification in 2011.

“One of the biggest chal-lenges was to consult with the58 companies and nearly5,000 employees in the build-ing,” said Karol Bartos, man-aging director Poland atMGPA. But it proved to bewell worth it. Rondo 1 man-aged, with relatively smallinvestments involving lightingreplacement, a water-savingprogram and a green roof, tomaintain its leasing rate in aweak market, while reducingrunning costs by 15 percent.

Rondo 1 won the “Buildingof the Year” at the RealGreenAwards. Other winners wereSkanska Commercial Devel-opment Europe for “Real-Green Developer of theYear,” MGPA for “RealGreenInvestor of the Year,” andChapman Taylor for “ServicesProvider of the Year.”

AAlliiccee TTrruuddeellllee

APRIL 23-29, 2012 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17

Apsys Polska

manages Nova

Park mall

Real estate company

Apsys Polska was named

the manager of the Nova

Park shopping and

entertainment center

that opened for business

in Gorzów Wielkopolski,

Lubuskie voivodship, last

week. The project

comprises 32,000 sqm of

retail space and is the

largest retail

development of its kind in

the region.

Renewed

leases at PBP

in WarsawWarsaw Stock

Exchange-listed

developer Globe Trade

Centre (GTC) has

extended lease

agreements for a total of

11,000 sqm of office

space at its Platinium

Business Park project.

“Five years after opening

the first building,

Platinium Business Park

remains one of the most

popular business centers

in the Polish capital,”

Jacek Wachowicz, lease

and sales director at GTC,

said in a statement.

Panattoni Park

Wroc∏aw II

expansionIndustrial space

developer Panattoni

Europe is expanding its

Panattoni Park Wroc∏aw

II logistics park in

western Poland by more

than 10,000 sqm of space,

most of which has

already been

commercialized. ●

Office

GGhheellaammccoo PPoollaanndd wwoorrkkiinngg oonn nneewwooffffiiccee pprroojjeeccttss iinn ssoouutthheerrnn WWaarrssaawwThe schemes includetwo investments in thecapital’s quicklydeveloping S∏u˝ewiecneighborhood

Developer Ghelamco Polandhas launched construction on anew office project on ul. Mary-narska in Warsaw’s Mokotówdistrict which will comprise asingle building with approxi-mately 40,000 sqm of space.

The company has alreadyleased 27,000 sqm in the devel-opment to telecom operatorPolska Telefonia Cyfrowa andis currently in the process ofcommercializing the remainingleasable area in the scheme.

The investment on ul.Marynarska is located in theS∏u˝ewiec neighborhood ofWarsaw’s Mokotów district,which has become one of themost intensively developedbusiness hubs in the Polish cap-ital.

Ghelamco, which hasalready developed office com-plexes including Trinity Park I,II and III, Marynarska Busi-ness Park and Mokotów Novain S∏u˝ewiec, still sees ampledevelopment potential in thearea, which should soon bene-fit from the delivery of newtransport infrastructure proj-ects.

Jaros∏aw Zagórski, com-mercial and business develop-ment director at GhelamcoPoland, said that the comple-tion of a new railway connec-tion with Warsaw’s ChopinAirport and the delivery ofnew road infrastructurearound ul. Marynarska is

already giving S∏u˝ewiec anadditional boost.

“Developers are nowincreasingly interested in plotslocated south of ul. Marynars-ka, as well as in land locatedjust across the railway line thatdivides Warsaw’s Mokotówand W∏ochy districts,” MrZagórski said.

One of the next office proj-ects developed by Ghelamcowill be located in the former ofthe above-mentioned areas,south of the intersection ofWarsaw’s ul. Marynarska andul. Post´pu. The investment,which is still in the designstage, will deliver approximate-ly 30,000 sqm of space.

The company is also plan-ning an office complex on ul.¸opuszaƒska in the W∏ochydistrict which constitutes awestern section of the sameroad as ul. Marynarska. Twobuildings with a combined15,000 sqm are expected to bebuilt there.

Maturing marketMeanwhile, Ghelamco isworking on an office project onul. Poleczki in Warsaw’sUrsynów district, which liessouth of the S∏u˝ewiec neigh-borhood. The company hasrecently signed a sales transac-tion with telecom operatorNetia for 23,600 sqm of land inthe location.

Ghelamco will build anoffice complex on the plotsacquired from Netia, with oneof the buildings in the projectexpected to house Netia’soffices. The deal is expected tobe finalized by the end of thisyear.

“Transactions of this kind,much more complex than asimple acquisition of a plot ofland, show the maturing of thePolish market. Sale and lease-back deals will be increasinglycommon in the market inupcoming years,” Mr Zagórskisaid.

He added that until recent-ly businesses were often intenton having their own companybuildings that were preciselytailored to their needs, but dif-ficult to sell or lease once thetenant’s requirements changedand the occupier decided tomove out.

AAddaamm ZZddrrooddoowwsskkii

New office, cultural space in central Warsaw

Planned Ghelamco investments in Warsawalso include a mixed-use project at the capital’sPl. Grzybowski that will comprise a new build-ing of the Socio-Cultural Association of Jewsin Poland (TSK˚) and an office high-rise.

Analyses have shown that TSK˚’s existingbuilding, which was built in the 1960s andhouses, among other things, the Ester RachelKamiƒska and Ida Kamiƒska Jewish Theater,does not comply with safety standards.

The association has decided to find astrategic investor that would help it build newpremises. If all the necessary administrativepermits are secured, Ghelamco will in thenext few years develop the two-phase project

whose design will be selected via an interna-tional architectural competition.

First, the company will build a new five-floor building for TSK˚ that will sit on avacant plot neighboring the current structureand on part of the land now occupied by thelatter building. The theater will continue tooperate in its current premises during theconstruction process.

Once the theater has moved to the newlybuilt structure, Ghelamco will demolish therest of the existing TSK˚ building and build amodern 80-sqm office tower with a three-floor underground parking lot at the site.

AAddaamm ZZddrrooddoowwsskkii

CO

UR

TE

SY O

F G

HE

LA

MC

O P

OL

AN

DC

OU

RT

ES

Y O

F G

HE

LA

MC

O P

OL

AN

D

Mr Zagórski said there is still ample development

potential in Warsaw’s S∏u˝ewiec neighborhood

APRIL 23-29, 2012TTHHEE LLIISSTT18 www.wbj.pl

www.bookoflists.pl

Corporate Services

HR Companies - Executive SearchRanked by number of high-ranking management personnel placed in 2010

Companies whose core business is Executive Search (1)

Rank

Company nameAddressTel./FaxE-mailWeb page

Number ofexecutivepersonnelemployed

Number ofmid-level

managementpersonnelemployed

Number ofpersonnelemployed

overall

Total numberof orders

Totalnumber of

clientsserved infield of

ExecutiveSearch

Incom

e b

reakdow

n: S

&R

/Executive

Searc

h /

Tem

pora

ry w

ork

agencie

s /

Oth

er

Ord

er ful

fillm

ent pe

riod

(w

eeks

):Lo

w-r

anki

ng p

erso

nnel

/M

ediu

m-r

anki

ng p

erso

nnel

/H

igh-

rank

ing

pers

onne

l

Guara

nte

e p

eri

od (

month

s):

Low

-rankin

g p

ers

onnel /

Mediu

m-r

ankin

g p

ers

onnel /

Hig

h-r

ankin

g p

ers

onnel

Headhunting /

Ass

ess

ment

cente

r /

Managem

ent

audit

HR

dept.

managem

ent

/S

atisf

action s

urv

eys

/O

utp

lacem

ent

Job v

alu

ation /

Train

ing /

Mark

et

monitori

ng Total

number ofown

employeesin Poland /

Yearfounded

Ownership: Polish /Foreign

Top local executive /Title

1

Grupa HRC SA (2)

ul. Leszno 8/1, 01-192 Warsaw22 862-3812/22 862-4019office@hrc.com.plwww.hrc.com.pl

12511070

504530

175155100

175155100

14011090

-100%

--

3-44-64-8

6912

✓✓✓

✓✓✓

✓✓✓

241996

Capital PartnershipPW Capital

Piotr MacochBoard Member

2

Headcount Solutions Polska Sp. z o.o.Al. Jerozolimskie 56C, 00-803 Warsaw22 583-9552headcount@headcount.plwww.headcount.pl

9310492

202315

113127107

117134112

WNDWNDWND

20%80%

--

246

6612

✓✓-

--✓

---

62006

WND Seamus Pentony

3

BCSystems Sp. z o.o. ul. Bagno 2, 00-112 Warsaw22 622-9731/22 490-8400office@bcsystems.plwww.bcsystems.pl

989265

373622

13512887

WNDWNDWND

WNDWNDWND

-70%

-30%

1-31-31-3

1-31-63-12

✓✓✓

✓✓✓

✓✓✓

212006

Mariusz Skocz - 80%WND

Mariusz SkoczPresident

4

Russell Reynolds Associates Sp. z o.o.ul. Belwederska 23, 00-761 Warsaw22 851-6838/22 851-6848joanna.chudziak@russellreynolds.comwww.russellreynolds.com

556058

---

556058

666565

47WNDWND

-95%

-5%

NANA6-8

NANA12

✓-✓

---

---

141995

NoneRussel Reynolds Associates -

99%; Russel Reynolds Services -1%

Dorota CzarnotaPresident;

Managing Partner Poland and CEE

5

ACCETIS POLAND & CEER Sp. z o.o.ul. Marynarska 21, 02-674 Warsaw22 463-9790/22 463-9791contactpl@accetis.comwww.accetis.com

605630

152420

758050

WNDWNDWND

WNDWNDWND

5%90%

-5%

NA4-66-12

NA612

✓✓✓

--✓

-✓✓

102002

NoneWND

Magdalena Nieç; Patrick Craps

Country Manager; Regional Director

6

Carpenter Consulting - IMSA Poland Sp. z o.o.Skwer Wyszyƒskiego 5/21, 01-015 Warsaw22 406-0458 /22 406-0459info@carpenterconsulting.plwww.carpenterconsulting.pl

765015

242536

1007551

1007551

262118

5%75%

-20%

334

3-46-88-12

✓✓✓

-✓✓

-✓✓

72005

Monika Ciesielska - 99%WND

Monika Ciesielska President

6

CTER (Czarnocka Tworzyƒska Execu-tive Recruitment)ul. Nowy Âwiat 30/5, 00-373 Warsaw22 828-3667/22 828-3667office@cter.plwww.cter.pl

535049

363525

898574

858675

423530

-100%

--

NA5-65-8

NA912

✓-✓

---

✓--

112001

WNDJoanna Czarnocka-

Tworzyƒska; Piotr GoliƒskiCo-Managing Partners

8

Accord Group Polska Sp. z o.o.ul. Brodziƒskiego 27, 01-557 Warsaw22 486-3001/22 839-1078warsaw@accord-ece.comwww.accord-ece.com

494235

353

524738

555040

413528

-90%

-10%

NA4-66-8

NA612

--✓

--✓

---

101995

Corinne Klajda - 100%None

Jolanta BoscaGeneral Manager

9

Boyden \ Szostek & Partners Sp. z o.o.ul. Âródziemnomorska 11, 02-758 Warsaw22 840-6061/22 642-3678office@szostekpartners.comwww.szostekpartners.com

404026

151815

555841

555841

555841

-100%

--

3-44-55-6

61212

✓-✓

-✓-

---

71991

Urszula SzostekNone

Urszula SzostekManaging Partner

9

Grupa Tempo Sp.c.ul. KoÊciuszki 20/8, 44-100 Gliwice32 335-3232/32 331-7525biuro@grupatempo.plwww.grupatempo.pl

504030

302010

806040

806040

3030

WND

35%50%

-15%

WND2-34-6

WND612

✓✓✓

✓✓✓

✓✓✓

252002

Agnieszka Bornus;Agnieszka Gajewska-Cygan

WND

Agnieszka Bornus;Agnieszka Gajewska-Cygan

11

Devonshire Sp. z o.o.Al. Jerozolimskie 56C, 00-803 Warsaw22 820-9360/22 820-9328biuro@devonshire.plwww.devonshire.pl

553525

756550

13010075

170140100

556540

20%57%20%3%

22-44-6

3612

✓✓-

---

--✓

202006

NoneDevonshire Recruitment Holdings

- 100%

Daniel ¸upiƒskiGeneral Director

12

SOURCE Executive Recruitment Sp. z o.o.ul. Wilcza 72, 00-670 Warsaw22 875-2335/22 825-5236mail@source.plwww.source.pl

483124

24108

724132

645248

605551

15%85%

--

1-32-33-4

3-66-1212

✓--

--✓

✓-✓

72000

NoneThomas von Raeder - 85%; Kevin

Nejedly - 15%

Aneta GórkaCountry Director

13

Legend Human Resources Advisorsul. Marynarska 14, 02-674 Warsaw22 647-0300/22 853-0097lhra@lhra.plwww.lhra.pl

302115

857567

1159682

150120100

353230

30%70%

--

346

3612

✓✓✓

--✓

--✓

122001

WNDAdam ˚ebrowski

General Manager

2011 (forecast) / 2010 / 2009

Services offered

APRIL 23-29, 2012 TTHHEE LLIISSTT www.wbj.pl 19

Notes: Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List wasconducted in October 2011. Number of employees and ownership structure are as of September 2011. All informa-tion pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.Footnotes: (1) Categorization was determined by percentage of income from executive search services. (2) Previous-ly Human Resource Consulting Sp. z o.o.

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thor-oughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to War-saw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail towbjbol@wbj.pl. Copyright 2012, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior writtenpermission of the publisher. Reprints are available.

Companies whose core business is not Executive Search (1)

Rank

Company nameAddressTel./FaxE-mailWeb page

Number ofexecutivepersonnelemployed

Number ofmid-level

managementpersonnelemployed

Number ofpersonnelemployed

overall

Totalnumber of

orders

Total numberof clientsserved infield of

ExecutiveSearch

Incom

e b

reakdow

n: S

&R

/Executive

Searc

h /

Tem

pora

ry w

ork

agencie

s /

Oth

er

Ord

er f

ulfill

men

t pe

riod

(wee

ks):

Low

-ran

king

pers

onnel

/M

ediu

m-r

anki

ng

pers

onnel

/H

igh-r

anki

ng

pers

onnel

Guara

nte

e p

eri

od (

month

s):

Low

-rankin

g p

ers

onnel /

Mediu

m-r

ankin

g p

ers

onnel /

Hig

h-r

ankin

g p

ers

onnel

Headhunting /

Ass

ess

ment

cente

r /

Managem

ent

audit

HR

dept.

managem

ent

/S

atisf

action s

urv

eys

/O

utp

lacem

ent

Job v

alu

ation /

Train

ing /

Mark

et

monitori

ng Total

number ofown

employeesin Poland /

Yearfounded

Ownership: Polish /Foreign

Top local executive /Title

1

Adecco Poland Sp. z o.o.Al. Jana Paw∏a II 19, 00-854 Warsaw22 376-0900/22 376-0901biuro.hq@adecco.comwww.adecco.pl

WND555504

WND685610

WND1,2401,114

WND1,3031,160

WNDWNDWND

WNDWNDWNDWND

WNDWNDWND

WNDWNDWND

✓✓✓

✓✓✓

✓✓✓

2381994

NoneAdecco - 100%

Anna WichaGeneral Director

2

Hays Poland Sp. z o.o.ul. Z∏ota 59, 00-120 Warsaw22 584-5650/22 584-5651info@hays.plwww.hays.pl

WND510450

WND--

WND510450

WND600500

WNDWNDWND

WNDWNDWNDWND

1-41-4

1-4+

WNDWNDWND

✓✓-

✓-✓

---

1502002

NoneHays Specialist Recruitment

Limited - 100%

Micha∏ M∏ynarczykManaging Director CEE

3

Stanton Chase International Sp. z o.o.Al. Niepodleg∏oÊci 124, 02-577 Warsaw22 401-8030/22 401-8031warsaw@stantonchase.comwww.stantonchase.com

404949

91010

495959

506161

455252

WNDWNDWNDWND

NA4-56-7

NA1212

✓-✓

--✓

---

81994

WNDBeata Soko∏owska-P´k

Managing Director

4

HRK SAPl. Bankowy 2, 00-095 Warsaw22 420-2000/22 420-2019hrk@hrk.plwww.hrk.eu

504181

828778

132128159

143132174

978485

WNDWNDWNDWND

NA2-53-6

NA3-66-12

✓✓✓

✓-✓

-✓✓

1762000

WNDNone

WND

5

FUTUREA Grupa Doradcza Sp. z o.o.ul. T. Cha∏ubiƒskiego 8, 00-613 Warsaw22 523-7474/22 524-7499futurea@futurea.plwww.futurea.pl

WND3537

WND2122

WND5659

WNDWND

62

WNDWNDWND

10%30%10%50%

44

5-6

33-66-9

✓✓✓

✓✓✓

✓✓-

142002

WNDMariusz Grzywiƒski

President

6

PSI Polska Jadwiga Kuczkowska Sp.k.-a.Al. Jana Paw∏a II 80/142, 00-175 Warsaw22 536-9600/22 536-9600office@psipolska.plwww.psipolska.pl

323126

3713

353839

353831

213227

WNDWNDWNDWND

NA4-65-7

NA6

6-12

✓✓✓

-✓✓

-✓-

102006

Jadwiga Kuczkowska - 68%; Rafa∏ J´drzejewski - 30%;

Anna Rudziƒska - 2%None

Jadwiga KuczkowskaUnlimited Partner

7

CPL Jobs Sp. z o.o.Al. Jerozolimskie 81, 02-001 Warsaw22 488-6500/22 488-6530warsaw@cpljobs.plwww.cpljobs.pl

WND27

WND

WND4

WND

WND31

WND

WND56

WND

WND59

WND

80%15%5%-

236

3312

✓✓✓

✓✓✓

✓-✓

272006

NoneCPL Resources - 100%

Gracjan GódêCountry Manager

8

Inwenta Sp. z o.o. ul. Koszykowa 69/3, 00-667 Warsaw22 502-3470/22 502-3471biuro@inwenta.plwww.inwenta.pl

292523

663

353126

363328

282326

25%42%

-33%

NA5-66-8

NA6-812

✓✓✓

✓✓✓

-✓✓

142004

Monika Buchajska-Wróbel - 50%;Beata Bukowska - 50%

None

Monika Buchajska-Wróbel;Beata Bukowska

Board Members

9

Reed Employment Limited Oddzia∏ w PolsceAl. Jerozolimskie 123A, 02-217 Warsaw22 397-3100/22 397-3101info.poland@reedglobal.comwww.reedglobal.pl

1315NA

3732NA

5047NA

5552NA

1512NA

75%25%

--

NA45

NA36

✓--

--✓

✓-✓

152005

NoneReed Employment Limited - 100%

Karolina Adamiec-VookCountry Manager

10

Start People Sp. z o.o.ul. Piotrowska 111, 90-425 ¸ódê22 661-5902/22 661-5902mwieczorkowska@startpeople.plwww.startpeople.pl

2212

WND

2520

WND

3930

WND

5752

WND

5654

WND

1.3%0.7%98%

-

3-64-85-12

3-66-96-12

WNDWNDWND

WNDWND

✓

WND✓

WND

1691997

WNDUSG People

Marek JurkiewiczManaging Director

11

Sanpro Job Service Sp. z o.o.ul. Ruska 3/4, 50-079 Wroc∏aw800-190-911/71 711-0001cc.info@impel.plwww.stacjarekrutacja.pl

9107

355539

446546

446546

213518

4%1%95%

-

2-44-514

1-33-63-6

--✓

✓✓✓

✓✓✓

1502003

WNDGrzegorz Tyszka

President

12

Stegmann Polska Sp. z o.o. ul. Opolska 1, 40-084 Katowice32 609-0550/32 609-0559stegmann@stegmann-personal.plwww.stegmann-personal.pl

332

---

685

9117

564

5%1%94%

-

WNDWNDWND

33

6-12

✓✓✓

✓✓

WND

WNDWNDWND

152004

WNDAleksandra Knapczyk

Country Manager, Proxy

13

Work Service SAul. Ruska 51, 50-079 Wroc∏aw71 371-0900/71 371-0938work@workservice.plwww.workservice.pl

WND220

WND-6

WND226

WND230

WNDWNDWND

WNDWNDWNDWND

3-44-66

1-32-33-6

✓✓-

--✓

--✓

3991999

Supernova IDM Fund - 16.1%;HMS Best Management Idea LTI -

10.3%Prologics UK - 36%

Tomasz HanczarekPresident

NR

BIGRAM SAul. Cybernetyki 7, 02-677 Warsaw22 646-9494/22 848-7030bigram@bigram.plwww.bigram.pl

WNDWNDWND

WNDWNDWND

WNDWNDWND

WNDWNDWND

WNDWNDWND

WNDWNDWNDWND

4-54-56

6912

✓✓✓

✓WND

✓

✓✓✓

541993

WND Piotr Wielgomas

NR

Grupa Job - Job Impulse Polska Sp. z o.o.ul. Sielska 8, 60-129 Poznaƒ61 662-3479/61 662-3479atokarewicz@grupajob.plwww.grupajob.pl

1WNDWND

2WNDWND

WNDWNDWND

WNDWNDWND

WNDWNDWND

WNDWNDWNDWND

WNDWNDWND

WNDWNDWND

✓-✓

-✓✓

-✓✓

602003

WNDMaciej Kozicki

President

2011 (forecast) / 2010 / 2009

Services offered

APRIL 23-29, 201220 www.wbj.pl MMAARRKKEETTSS

SO

UR

CE

: W

SE

PLN-EUR

4.17

79

4.20

28

4.19

00

4.17

60

4.18

65

4.18

85

13.0

4

16.0

4

17.0

4

18.0

4

19.0

4

20.0

44.1

4.2

4.3 PLN-USD

13.0

4

16.0

4

17.0

4

18.0

4

19.0

4

20.0

4

3.17

65

3.22

89

3.18

72

3.19

02

3.18

79

3.18

28

3.0

3.5 PLN-GBP

13.0

4

16.0

4

17.0

4

18.0

4

19.0

4

20.0

44.8

5.0

5.2

5.05

80

5.11

48

5.08

62

5.09

95

5.11

83

5.12

42

PLN-CHF

3.47

65

3.49

40

3.48

72

3.47

38

3.48

37

3.48

53

13.0

4

16.0

4

17.0

4

18.0

4

19.0

4

20.0

43.4

3.6 PLN-RUB

13.0

4

16.0

4

17.0

4

18.0

4

19.0

4

20.0

4

0.10

75

0.10

86

0.10

77

0.10

81

0.10

80

0.10

78

0.10

0.12 PLN-100JPY

13.0

4

16.0

4

17.0

4

18.0

4

19.0

4

20.0

43.5

4.2

3.92

48

4.00

25

3.94

87

3.91

51

3.91

13

3.89

61

currency rates

Z∏oty on roller

coaster

Currency report

As summer approaches, weare experiencing a déjà vufrom last year, where after agood first quarter, the rest ofthe year was a struggle. Highoil prices, a slowdown inAsia – we saw all of that in2011. This past week broughtmore confirmation of thatcorrelation with worse-than-expected data from the USeconomy. This turn of eventslowers the chance for aninterest-rate hike in the US,which some thought couldhappen as early as this year.

The US dollar has beenunder pressure since thebeginning of the week andthe EUR/USD climbed allthe way to reach the resist-ance level of $1.32 ($1.30 atthe beginning of the week).Next week I expect a correc-tive movement, which shouldpush the main currency pairto the $1.30-$1.31 level.

The z∏oty was on a rollercoaster this past week, asmixed data from Poland hitthe market. Average wagesincreased, which made thehawkish views of the rate-setting Monetary PolicyCouncil (RPP) more valid.Marek Belka, the centralbank’s president, confirmedthe RPP would seriouslyconsider an interest hike attheir next meeting. However,data showed that core CPIinflation dropped in Polandto 2.4 percent on an annualbasis, lowering the chance ofa hike.

Investors are unsureabout the direction of thez∏oty and this can be seen inthe currency’s movementslast week – the EUR/PLN,after reaching its weekly highof z∏.4.20, tumbled to a week-ly low of z∏.4.16 and finishedthe week at z∏.4.19. ●

Adam NarczewskiX-Trade Brokers DM SA

SO

UR

CE

: N

BP

Major indices

WIG 40,354.53 (April 19 close)

Change for the week: -1.70% 52-week high: 50,371.74

Change year to April 19: 5.31% 52-week low: 36,549.47

WIG20 2,232.18 (April 19 close)

Change for the week: -2.04% 52-week high: 2,932.62

Change year to April 19: 1.74% 52-week low: 2,089.84

mWIG40 2,455.29 (April 19 close)

Change for the week: -0.77% 52-week high: 2,987.72

Change year to April 19: 12.10% 52-week low: 2,076.52

sWIG80 10,057.05 (April 19 close)

Change for the week: -1.00% 52-week high: 12,932.00

Change year to April 19: 16.88% 52-week low: 8,218.71

NewConnect 41.37 (April 19 close)

Change for the week: -1.15% 52-week high: 59.10

Change year to April 19: -0.29% 52-week low: 40.00

WIG-Banki 5,726.44 (April 19 close)

Change for the week: -1.73% 52-week high: 7,387.49

Change year to April 19: 5.12% 52-week low: 4,944.19

DJIA12,964.1 (Apr 19 close)

-0.17% (for the week)

CHANGE: 4.57%

(year to Apr 19)

52-week high: 13,289.08

52-week low: 10,404.49

NASDAQ3,007.56 (Apr 19 close)

-1.57% (for the week)

CHANGE: 13.55%

(year to Apr 19)

52-week high: 3,095.36

52-week low: 2,298.89

S&P5001,376.92 (Apr 19 close)

-0.77% (for the week)

CHANGE: 7.82%

(year to Apr 19)

52-week high: 1,414.00

52-week low: 1,074.77

FTSE1005,744.5 (Apr 19 close)

0.60% (for the week)

CHANGE: 0.78%

(year to Apr 19)

52-week high: 6,103.73

52-week low: 4,791.01

DAX6,671.22 (Apr 19 close)

-1.07% (for the week)

CHANGE: 9.80%

(year to Apr 19)

52-week high: 7,600.41

52-week low: 4,965.80

NIKKEI2259,588.38 (Apr 19 close)

0.67% (for the week)

CHANGE: 12.01%

(year to Apr 19)

52-week high: 10,207.91

52-week low: 8,135.79

world stock indices

21.0

322

.03

23.0

326

.03

27.0

328

.03

29.0

330

.03

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

413

.04

16.0

417

.04

18.0

419

.0440,000

40,600

41,200

41,800

42,400

43,00021

.03

22.0

323

.03

26.0

327

.03

28.0

329

.03

30.0

302

.04

03.0

404

.04

05.0

410

.04

11.0

412

.04

13.0

416

.04

17.0

418

.04

19.0

42,200

2,240

2,280

2,320

2,360

2,400

21.0

322

.03

23.0

326

.03

27.0

328

.03

29.0

330

.03

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

413

.04

16.0

417

.04

18.0

419

.042,400

2,440

2,480

2,520

2,560

2,600

21.0

322

.03

23.0

326

.03

27.0

328

.03

29.0

330

.03

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

413

.04

16.0

417

.04

18.0

419

.049,900

10,020

10,140

10,260

10,380

10,500

21.0

322

.03

23.0

326

.03

27.0

328

.03

29.0

330

.03

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

413

.04

16.0

417

.04

18.0

419

.0440.0

40.8

41.6

42.4

43.2

44.0

21.0

322

.03

23.0

326

.03

27.0

328

.03

29.0

330

.03

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

413

.04

16.0

417

.04

18.0

419

.045,600

5,700

5,800

5,900

6,000

6,100

Other indices

Good news proves

fleeting

Stocks report

The WSE started the week innegative territory. The blue-chip WIG20 index lost 0.3percent at the beginning ofthe day. However, positivemacroeconomic news fromthe US regarding retail salesbrought the WIG20 up 0.5percent during the day. Butthe optimism didn’t last long,and the WIG20 closed 0.06percent down.

Tuesday saw little fluctua-tion in share prices. Moodswere higher in part due to abetter-than-expected sale ofshort-term Spanish bonds,and the WIG20 ended 0.88percent higher while the mid-cap mWIG40 was up 0.17percent.

Investors started Wednes-day in good spirits. Solid gainsfrom Tuesday in Europe, onthe NYSE and in Asian mar-kets gave cause for cheer. Butnegative real-estate newsfrom China worsened themood, and bad news from

Spain added to the gloom.The WIG20 ended the day1.09 percent lower.

Investors started offThursday thinking they wouldrecover their losses. But it wasanother day of losses on theWSE, as poor macroeconom-ic data from the US regardingthe housing market and eco-nomic activity spoiled moods.Polish macroeconomic datawasn’t much better. Industrialproduction rose by just 0.7percent in March while themarket had expected anincrease of 4.7 percent. TheWIG20 ended the day 0.6percent in the red.

On Friday, investorsweren’t in an optimistic moodand most indices were downduring the day. If not for theoptimistic start to the day ofthe S&P, markets would havefinished the session with deeplosses. In the end the WIG20finished 0.5 percent down.

RReemmii AAddeekkooyyaa

APRIL 23-29, 2012 SSPPOORRTTSS www.wbj.pl 21

Ice hockey

PPoollaanndd oonn ffiirree aatt iinntteerrnnaattiioonnaall cchhaammppiioonnsshhiippssThe Eagles scored 19goals withoutconceding any in theirfirst two matches

Poland’s national ice hockeyteam brushed aside the oppo-sition in their opening matchesat the 2012 IIHF Ice HockeyWorld Championship Division1 Group B, in Krynica, withtwo outstanding displays.

Poland went into the tour-nament, which comprisesteams from the third tier ofinternational ice hockey, asfavorites. The home side cer-tainly lived up to their billingwith a 9-0 thrashing of Lithua-nia on April 15, in front of

3,000 ecstatic fans.However, it was not until

10 minutes into the game thatPoland managed to breakthrough the Lithuanian de-fense, when 35-year-old PiotrSarnik’s power-play goal putthe Poles ahead 1-0. Fromthen on it was one-way trafficas Lithuania could do noth-ing to prevent head coachWiktor Pysz’s team swarmingforward with wave after waveof attacks that in the endhelped produce a very com-fortable victory.

In their next game theEagles went one better with a10-0 thumping of Romania, asPolish defender Adam Borzec-

ki put on an inspired display.“Poland … is the best team

in this tournament. I thinkthere isn’t a team here that hassix forwards like their top six,as well as a couple of theirdefensemen. For us, who havebeen coming up a division it isa challenge to play at the pacethey do,” said Romania’sCanadian head coach TomSkinner, after the match.

In their other games,Poland beat the Netherlandsand Australia 5-1 and 5-3respectively. The Eagles hadone game left to play, againstSouth Korea, as WBJ went topress.

DDaavviidd IInngghhaammC

OU

RT

ES

Y O

F W

IKIM

ED

IA C

OM

MO

NS

Piotr Sarnik opened the scoring in the 9-0 defeat of Lithuania

American football

Warsaw Eagles remainunbeaten after Kraków victoryThe Devils and theSeahawks bothrecorded shutouts in aone-sided weekend inthe PLFA Topliga

The Warsaw Eagles overcamethe Dom-Bud Kraków Tigersin the latest round of matchesin the Topliga division of thePolish American FootballLeague (PLFA), to remain theonly unbeaten team.

Kevin Lynch threw fourtouchdowns as eight differentEagles found the end zone in amatch which saw Warsawdefeat the Tigers by a score of68-12. Marcin Jod∏owski andPiotr Osuchowski both scoredtwice for the victors, who arenow averaging 49 points agame in Topliga play.

Things are a little less rosyfor the Tigers, who are nowtied for fourth place with theAZS Silesia Rebels.

Elsewhere, Kyle McMahonthrew three scores and ran fortwo more as the Gdynia Sea-hawks built a 28-0 halftime lead

en route to a 49-0 shutout of theAZS Silesia Rebels in Katow-ice. Josh DeLuca was on thereceiving end of two of thosetouchdown passes and Sebast-ian Krzysztofek also found theend zone twice for Gdynia.

Koz∏y Poznaƒ’s miserablestart to the season continued asthey were dominated by theWroc∏aw Devils 34-0. Despitebeing without star quarterbackKrzysztof Wydrowski, theDevils still managed to slice upthe Koz∏y, who failed to scorefor the second time this season.

But although the gap betweenthe teams was significant by theend of the game, it had hung inthe balance until late in thethird quarter when it turnedinto the Krzysztof Wis show.

Playing defense as well askicking, he intercepted a passand took it 60 yards to the endzone for the game’s firsttouchdown.

The Devils’ defender laterkicked a field goal to make it21-0 for the Devils going in tothe final quarter.

AAlleexx ZZaarrggaanniiss

Basketball

Gortat’s double-doubleThe Phoenix Sunsplayer scored 20points and got 10rebounds

Polish NBA star Marcin Gor-tat was the star performer forthe Phoenix Suns in their 125-107 victory over the PortlandTrail Blazers last week.

The ¸ódê-born 29-year-oldscored 20 points and got 10rebounds to secure his 29th

double-double of the season.

In the end it was a fairlycomfortable night’s work forthe Suns as they dominated forthe majority of the match,building a 20-point lead by theend of the third quarter.

Steve Nash, who had 14assists, said after the game,“The sense of urgency hasbeen here since the All-StarGame. … I think we’re playingthat way every game, and havefelt that through the last fewweeks.”

It was the Suns’ fourth vic-tory in their last six games andtheir second consecutive winas they maintain their latepush for a playoff spot.

The Suns have two gamesleft to make sure of their placein the top eight of the WesternConference. As WBJ went topress Phoenix was rankedeighth, level on wins with theUtah Jazz but with a better in-conference record.

DDaavviidd IInngghhaamm

Swimming

Champion swimmer in comaMateusz Matczaksuffered serious headinjuries following anight out in ¸ódê

Former Junior World Champi-on swimmer Mateusz Matczakis in a drug-induced comaafter suffering serious headinjuries during a drunkennight out last week. As WBJwent to press, police and med-ical staff were still not sure ofthe exact circumstances sur-

rounding the incident.The 23-year-old from ¸ódê

had been drinking with friendsat a club in his hometown untilthe early hours of the morningon April 15. After leaving theclub he was seen on localclosed-circuit cameras leaningagainst a wall at 3:10 am.Approximately 10 minuteslater he was discovered bypolice lying on the groundnearby with serious headinjuries.

Medical staff have ruledout the possibility that the for-mer junior world swimmingchampion had been assaultedor robbed.

Mr Matczak won the 400-meter freestyle gold medal atthe 2006 Junior World Cham-pionships. He also took gold inboth the 400-meter freestyleand 400-meter medley eventsat the 2007 European JuniorChampionships.

DDaavviidd IInngghhaamm

CO

UR

TE

SY O

F M

AR

CIN

WA

RP

EC

HO

WS

KI

The Warsaw Eagles’ Kevin Lynch looks for a receiver in

the team’s win over the Tigers

APRIL 23-29, 2012LLIIFFEESSTTYYLLEE22 www.wbj.pl

May 9The LemonheadsHydrozagadkaul. 11 Listopada 22Warsaw

Once a darling of the indie-music press, The Lemon-heads’ lead singer EvanDando never quite hit theheights expected of him whenhis band burst on to the alter-native scene in the early 1990s.

His band’s breakthroughalbum came in 1992 with theirfirst major label release “It’s a

Shame about Ray,” which fea-tured a cover of the Simon &Garfunkel track “Mrs Robin-son.” The original version ofthe song was used in the film“The Graduate,” and TheLemonheads’ version gainedmainstream exposure as partof the soundtrack of the movie“Wayne’s World 2.”

The band’s next album,1993’s “Come On Feel TheLemonheads,” reached 52 onthe Billboard 200 chart, con-firming the group’s growing

popularity. Drug problems and various

lineup changes then served tohamper the band’s progress,but fans of alternative rock canrest assured, charismatic frontman Evan Dando and his bandcan still put on a great liveshow and will be well worthgoing to see this May. Ticketsfor the event are priced fromz∏.49.

For more information, logon to hydrozagadka.waw.pl

DDaavviidd IInngghhaamm

Until 26 MayAneta Grzeszykowska andJan Smaga – Private ArchiveRaster Galleryul. Wspólna 63 Warsaw

The focal point of this new exhi-bition is a collection of photo-graphs from the private archiveof Polish artistic couple AnetaGrzeszykowska and Jan Smaga.The photos aim to offer an

insight into the artists’ workingpractices, while at the sametime providing a record of theirprivate lives.

The images show theirworkshops and working spacesas well as the couple indulgingin romance, experimentationand relaxation.

According to RasterGallery the exhibition, which isdefinitely not for the prudish,

“is a journal of emotion whichrecords the authors’ fantasies,which are sometimes beautifuland sometimes shameful.”

The exhibition is also accom-panied by “Love Book,” whichprovides a collection of AnetaGrzeszykowska’s photos, as wellas essays by Jan Smaga.

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

DDaavviidd IInngghhaamm

Concert

CCoommee oonn ffeeeell tthhee nnooiisseeExhibition

PPeerrssoonnaall aarrtt

April 30-May 3Dance Mania 15Egurrola Dance Studioul. ̊ wirki i Wigury 99a, Warsaw

Whether you’re a natural onthe dance floor or you’ve gottwo left feet but still love todance, Dance Mania 15 offers aseries of classes for all levels.

Organized by the EgurrolaDance Studio, this four-dayworkshop will provide experttutorials from leading danceprofessionals in a variety ofstyles including Afro, Hip Hop,Ragga Jam and Dance Hall.

The event will also includecompetitions for more talenteddancers with the DancemaniaChallenge, which takes place onMay 2, offering prizes totalingover z∏.10,000.

For more information,log on to dancemania.pl

DDII

Workshop

Dance feverC

OU

RT

ES

Y O

F T

HE

LE

MO

NH

EA

DS

.NE

T

Centre for ContemporaryArt at Ujazdowski Castle ul. Jazdów 2www.csw.art.pl

Czarna Gallery ul. Marsza∏kowska 4www.czarnagaleria.art.pl

Galeria 022, DAP, Lufcik ul. Mazowiecka 11awww.owzpap.pl

Galeria 65 ul. Bema 65www.galeria65.com

Galeria Appendix 2 (Praga)ul. Bia∏ostocka 9www.appendix2.com

Galeria Asymetria ul. Nowogrodzka 18awww.asymetria.eu

Galeria Foksal ul. Foksal 1-4www.galeriafoksal.pl

Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl

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

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

Galeria Zoya ul. Kopernika 32 m.8www.zoya.art.pl

Green Gallery ul. Krzywe Ko∏o 2/4www.greengallery.pl

Katarzyna Napiórkowska Art Galleryul. Âwi´tokrzyska 32, ul.Krakowskie PrzedmieÊcie 42/44and Old Town Square 19/21www.napiorkowska.pl

Królikarnia National Galleryul. Pu∏awska 113awww.krolikarnia.mnw.art.pl

Le Guern Galleryul. Widok 8, www.leguern.pl

Museum of IndependenceAleja SolidarnoÊci 62www.muzeumniepodleglosci.art.pl

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

Polish National Opera atTeatr WielkiPl. Teatralny 1www.teatrwielki.pl

Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl

Rempex Art and Auction Houseul. Karowa 31www.rempex.com.pl

Royal CastlePl. Zamkowy 4www.zamek-krolewski.com.pl

Simonis Galleryul. Burakowska 9www.simonisgallery.com

State ArchaeologicalMuseum in Warsawul. D∏uga 52 www.pma.pl

State Ethnographic Museumul. Kredytowa 1www.ethnomuseum.website.pl

Historical Museum of Warsaw Old Town Square 28-42www.mhw.pl

History Meeting House of Warsaw ul. Karowa 20www.dsh.waw.pl

Warsaw Philharmonic ul. Jasna 5www.filharmonia.pl

Warsaw Rising Museum ul. Grzybowska 79www.1944.pl

Wilanów Palace Museumand Wilanów PosterMuseumul. St Kostki Potockiego 10/16www.milanow-palac.plwww.postermuseum.pl

Zachęta National Art GalleryPl. Ma∏achowskiego 3www.zacheta.art.pl

Museums, galleries and venues in Warsaw

CO

UR

TE

SY O

F E

GU

RR

OL

A D

AN

CE

ST

UD

IO

Participants can learn how to dance in the Ragga Jam

and Hip Hop styles

Evan Dando

APRIL 23-29, 2012 LLAASSTT WWOORRDD www.wbj.pl 23

Tech Eye

Techeye had planned to write animpassioned harangue for this col-umn, one entitled “My LittlePhony: Why ‘The Powerpuff Girls’are awesomer than ‘My Little Pony:Friendship is Magic.’” Our pointwas that saccharine-sweet, super-powered girls who fight evil arecooler than anthropomorphizedponies perpetually perplexed byfriendship.

We had just sat down in a cafe towork on this opus, when suddenlythe fellow at the next table sneezedviolently, spraying snotlets across hisiPad. All we could think at the timewas “Thou shalt not sneeze on thyiPad” and we giggled a little, earninga snotty look from the unfortunateiPad owner.

Anyway, Techeye got the idea toinvent modern Commandmentslike “Thou shalt not covet thyneighbor’s wife (unless she’s real-ly hot)” and “Thou shalt not putponies before Powerpuffs.”Then we had an epiphany of

sorts: the iPad is a tablet.The biblical 10 Com-

mandments werewritten on

t a b l e t s .Coin-

c i d e n c e ?Sure. Still cool, though.

And so Techeye’s “Modern-Day,Secular and In No Way Blasphe-mous Commandments” – destinedto change the world, of course – willbe written on a tablet computer. Notan iPad, though. The world alreadyhas plenty self-righteous Mactards,no point in encouraging them.

Thus we’ve beenlooking at iPad alterna-tives on which to writeour not-so-divineguidelines, such as theTransformer Pad 300, anew tablet/netbookhybrid from Asus(asus.com).

This is the budgetmodel in the Trans-former Pad range (thePrime and Infinity are

the high and mid-level models,respectively) and while the 300 has a10.1-inch display like its pricier sib-lings, the screen quality is decidedlylower. Still, Asus is building a decentreputation for itself in this hybridniche and the 300 looks interesting.It runs on Ice Cream Sandwich, thelatest version of Android, has anNVIDIA Tegra 3 quad-core CPU,one gig of RAM and 16 GB of stor-age memory.

Transformer Pad 300 sales shouldstart soon. As of last week no officialannouncement had been made, butrumors suggested a price tag ofunder $400.

Here’s another option: the ChildPad by Archos (archos.com). As itsname suggests, this 7-inch tablet is akid-friendly piece of kit. It containsan unpretentious 1 GHz ARM Cor-tex A8 processor and 1 GB of RAM.

The Child Pad is designed to be abit sturdier than the average tablet,with a resistive touchscreen and arubberized back. It comes installedwith parental control software aswell as games such as “Angry Birds”and “Flight Frenzy.”

Archos had originally announceda shipping date of end March, but

missed it. The tablet isstill on its way, though“soon” is the best guesswe’ve heard. The sug-gested retail price is$129.

The final alternativeis the Kupa X11 (kupa-world.com) which, we’llbe honest, only caughtour attention becausekupa means “poop” inPolish.

Yes, it’s juvenile. But that doesn’tmake it any less funny.

The Kupa X11 is a little unusualin the market because it runs Win-dows 7 (possibly Windows 8 in thefuture) and comes with a stylus. Ithas a 10.1-inch touchscreen andcomes with 64 or 128 GB of solidstate memory; for comparison, thelower figure is equivalent to the top-tier version of the new iPad.

The tablet costs $699-$969,depending on options. It has beenpraised for its powerful performanceand decent battery life (purportedly10 in-use hours), but its design isawkward and the stylus is a bit of anodd duck.

Even so, we’ll probably use it towrite our new Commandments, justbecause its name makes us laugh.Divine inspiration, that. ●

Ever doubted the magic of friendship between ponies? Let us know: techeye.wbj@gmail.com

To advertise in WBJ’s classifieds section, contactMs Agnieszka Brejwo, at

(+48) 222-577-526 or abrejwo@wbj.pl

To order a print copy or digital version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67, ext. 208

Tablets containing wisdom, great and small

CO

UR

TE

SY O

F K

UP

AC

OU

RT

ES

Y O

F A

RC

HO

S V

IA M

AX

BO

RG

ES

AG

EN

CY

CO

UR

TE

SY O

F A

SU

S

The

Transformer

Pad 300

The Child Pad

The Kupa X11