VOLUME 17, NUMBER 44 • NOVEMBER 7-13, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

EExxiitt ZZiioobbrroo??The deputy leader of Law and Justice has been

forced out. Can he usurp Jaros∏aw Kaczyƒski’s

leadership of the right? 3

Since 1994 . Poland’s only business weekly in English

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Eroding confidence

Greece’s continuing drama has brought

the euro to the breaking point.

What happens next?

2, 3, 9

AA hheerroo’’ss llaannddiinnggCaptain Tadeusz Wrona is being hailed as a

hero after expertly managing an emergency

landing in Warsaw last week 4

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WBJ presents a special

report on Poland’s boat

building industry

The latest edition of the

iPhone launches in

Poland this week

PGNiG is turning the

tables on Russia by buying

gas from Germany

REAL ESTATELokale Immobilia

• Price wars

• Urban revitalization

• Prime plot downtown

15-18

Defending the unionPoland is leading the

charge for a more

integrated EU defense

strategy. It’s an uphill

battle

12-13

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

Business . . . . . . . . . . . . . . . . . . . .5-7

Banking in Focus . . . . . . . . . . . . . . .8

Opinion & Analysis . . . . . . . . . . . . .9

Special Report: Boat Makers .10-11

Special Report: EU Defense . .12-13

Interview . . . . . . . . . . . . . . . . . . . .14

Lokale Immobilia . . . . . . . . . .15-18

Markets . . . . . . . . . . . . . . . . . . . . .19

The List . . . . . . . . . . . . . . . . . . .20-21

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

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

In this issue

0.0

4.8

9.6

14.4

19.2

24.0

UK*

Franc

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Czech R

epub

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German

y

EU27

avera

geSp

ain

Poland

Denmark

Lithua

nia

Malta*

*

*Highest in EU27**Lowest in EU27

NOVEMBER 7-13, 2011NNEEWWSS2 www.wbj.pl

Belka gets

World Bank-

IMF post

National Bank of Poland

president Marek Belka

has been appointed the

new chairman of the

Development Committee

of the World Bank and

IMF. The committee was

established in 1974 to

advise the boards of

governors of the IMF and

the World Bank on

development issues and

on the financial

resources required to

promote economic

development in

developing countries.

Tomaszewski

denies spy

charges According to a report in

Newsweek Polska, Jan

Tomaszewski, a

legendary goalkeeper for

the Polish national team,

was registered as a

communist secret agent.

Mr Tomaszewski has

denied the report. “I

never ratted on anyone

and I was never an agent

of the secret services,”

Mr Tomaszewski, who

was recently elected to

parliament as a Law and

Justice MP, told

Newsweek.

No compensa-

tion for flight

delaysPassengers whose flights

did not take off on time

due to last Tuesday’s

emergency landing at

Warsaw’s Frederic Chopin

Airport are unlikely to

receive compensation,

reported Gazeta

Wyborcza. Agnieszka

Majchrzak, a

spokesperson for UOKiK,

said regulations do not

provide for compensation

in situations where delays

are caused by sudden,

unexpected events.

S&P: Poland

needs reform

Poland’s economy will

have significant growth

potential if the country’s

government is able to

push through a difficult

structural reform

program, ratings agency

Standard & Poor’s (S&P)

wrote in a recent report.

“How well Poland can

meet the immediate

challenges it faces

depend on the

government’s political

will to implement the

relevant reforms, in our

view,” S&P said in the

report. ●

Admiral Boats ............................10

Âlepsk ........................................10

Alior Bank ....................................8

APA Wojciechowski ....................15

Apple ........................................5, 8

Apsys Poland..............................15

Auchan ......................................10

Audi ..............................................6

Balt-Yacht ..................................10

Bentley ........................................6

Biedecki........................................5

BigFatTailgateParty.com............23

BOÂ ............................................16

BOMI ..........................................15

Boombotix ..................................23

BZ WBK ........................................6

Canal + Group ..............................5

CCC ............................................17

Citi Handlowy ............................12

Delphia Yachts Kot ....................10

DM IDM ........................................6

Dom Development ....................18

Echo Investment ........................17

Enea..............................................6

Espirito Santo ..............................5

Facebook ......................................8

First Data Polska ........................8

Galeon ........................................10

Gant ............................................18

Gap ............................................10

Gazprom ......................................6

Globe Trade Centre....................15

Google ..........................................8

Hitachi Europe ............................8

Hochtief Development Poland ..17

HSBC ............................................6

IDC Polska ..................................5

Inditex ........................................10

Jysk ............................................17

KPMG..........................................10

Kulczyk Holding ..........................6

Kulczyk Pon Investment ..............6

Laboratorium Kosmetyczne

Dr Irena Eris ................................7

Lot Polish Airlines ......................4

MasterCard Europe ....................8

Meble Emilia ..............................15

Miller, Canfield, W. Babicki, A.

Chelchowski & Partners ..........13

Model Art/Parker ......................10

Nagel-Group ..............................15

NeoVision ....................................5

Netia ..........................................12

Nokia ........................................7, 8

NOMI ..........................................17

Ostróda Yacht ............................10

Panattoni Europe ......................15

PGNiG ......................................3, 6

PH............................................3 17

Piotr i Pawe∏ ..............................17

PKO BP ........................................4

PMR............................................16

POLBOAT....................................10

Porsche ........................................6

Pracownia Uniprojekt ................17

Pure ............................................15

Reserved ....................................17

Rossmann ..................................17

RTV Euro AGD ............................17

Samar ....................................6, 10

Skoda Auto Polska ......................6

Tesco ..........................................15

The Diamond Bath Tub..............23

TVN Group....................................5

Tzur Architects ..........................15

Visa Europe ..................................8

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

Volkswagen AG ............................6

Volkswagen Bank ........................6

Volkswagen Financial Services ..6

Volkswagen Leasing Polska........6

Warsaw Stock Exchange ..........12

Whirlpool ......................................4

WISeKey ......................................8

X-Trade Brokers

Dom Maklerski ..........................19

Greek Prime Minister GeorgePapandreou stunned Europeand the world last week whenhe announced his countrywould hold a referendum todecide on whether or not toaccept the latest bailout pack-age it was offered and theaccompanying austerity meas-ures.

Markets reacted negative-ly to the news as many Greekshave already made their feel-ings on the austerity measuresquite clear through nation-wide protests and strikes.

Fears of a “no” vote, followedby a Greek default on its debtand its uncontrolled bank-ruptcy, spread like wildfire,causing a political crisis in theeuro zone.

The Greek PM was harshlycriticized for his referendumidea with even his own financeminister, Evangelos Venizelos,saying the country’s member-ship of the euro zone “cannotdepend on a referendum.”

As WBJ went to press, theoutcome of a scheduled vote ofno-confidence on Mr Papan-

dreou’s government was stillunclear.

Whatever the result of thevote, most Greek politicalobservers agree that Mr Papan-dreou’s days as prime ministerare numbered and that themost likely scenario is a govern-ment of national unity whichwould run the country untilparliamentary elections couldbe held. This measure would besupported by the major partiesin Greece’s parliament. It is notyet clear who would lead such agovernment.

Mr Papandreou, who wasborn in the US state of Min-nesota in 1952, comes from along standing political dynasty.He is the third member of thePapandreou family to serve asthe country’s prime ministerfollowing on from his grandfa-ther George Papandreou andhis father Andreas Papandreou.

Before becoming PM in2009, he served as minister fornational education and reli-gious affairs and later ministerof foreign affairs. Mr Papan-dreou has been leader of thePanhellenic Socialist Move-ment (PASOK) party sinceFebruary 2004.

RReemmii AAddeekkooyyaa

231was the number of people on board the Boeing 767

flight which made an emergency landing at Warsaw’s

Chopin Airport on November 1.

z∏.1.017 billionis the Q3 net profit of PKO BP, the best quartely result

in the bank’s history.

2.9%is the new 2012 GDP growth forecast for Poland from

Swiss investment bank UBS. Its previous prediction

was 3.3%.

11%is the proportion of Poles that have worked abroad in

the last 10 years, according to a poll by CBOS. The

main hotbeds of economic migration for Poles are

Germany and the UK.

“This skull will not smile again.”Jacek Kurski, a member of the European Parliament, referring to Law and Jus-

tice’s election chances following its political committee’s decision to boot him

out of the party

Quote of the Week

Arrested development?

The United Nations Development Program’s 2011 Human Devel-opment Index ranked Poland 39 out of 187 countries, which placesit in the “Very High Human Development” group, along with thedeveloped economies of the West. But Poland fares worse than theCzech Republic, Greece, the United Arab Emirates, Cyprus andMalta. Log on to WBJ.pl to find out why.

On WBJ.pl

Numbers in the News

Company index

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7-9 HR CONGRESSEvent: The 14th annual “Kongres Kadry” event will

examine the prospects for the development ofHR in Poland. Participate in workshops, hearexpert speakers, and learn from case studies.Location: Hotel Marriott, Warsawkongreskadry.pl

9-10 RETAIL BANKING CONGRESSEvent: This event aims to provide a platform of dis-

cussion and experience-sharing for top-levelmanagers involved in the financial servicesindustry in the CEE region, with a view tofinding solutions to problems encountered incontemporary retail banking.Location: Hotel Marriott, Warsawgab.com.pl

14-16 MAPICEvent: MAPIC is a unique exhibition and conference

dedicated to retail real estate. It bringstogether leaders from the retail real estatesector to explore the most innovative proj-ects, forge partnerships, close deals, andstay on top of trends and innovation.Location: Cannes, Francemipim.com/mapic/

14-25 BELGIAN DAYSEvent: During this year’s Belgian Days, the Belgian

Business Chamber invites you to participatein a series of business and cultural events,including King’s Day, a seminar on innova-tion in business, a Belgian “Mussels & Fries”evening, and a Belgian Film Evening. belgium.pl

18-20 PROFESSIONAL INVESTOR CONFERENCEEvent: This conference calls itself the second-

largest of its kind in Poland, after the “Wall-Street” conference. It features workshops,presentations and discussions on investingfor individual investors.Location: Ko∏obrzegsii.org.pl

18-20 BOATSHOWEvent: This fair provides an opportunity for manu-

facturers and distributors of all differenttypes of firms involved in the boating indus-try to meet, form partnerships and do deals.Location: Poznaƒboatshow.pl

22-23 EUROPEAN EMPLOYMENT FORUMEvent: This event is an annual conference and exhi-

bition focusing on the major social and eco-nomic issues surrounding employment.Location: Brussels, Belgiumemploymentweek.com

November

DATELINE

George Papandreou

IN THE SPOTLIGHT

Figures in focus

Bricks in the wall

Pupil/teacher ratio in pre-primary and primary education in

2009, by selected EU27 countries

Source: Eurostat

NOVEMBER 7-13, 2011 NNEEWWSS www.wbj.pl 3

Shale gas

royaltiesThe Polish government

still lacks rules

governing the percentage

of royalties it can collect

from companies that buy

concessions to extract

shale gas on Polish

territory. This could lead

to a huge loss of potential

earnings for the

government, amounting

to billions of z∏oty per

year, Dziennik Gazeta

Prawna reported. Foreign

companies will likely

demand the same rates

negotiated by Polish gas

monopolist PGNiG for

conventional gas, which

amounts to 2.5% of the

value of extracted fuel,

10 times less than

Norway’s government

has negotiated.

Foreign

investors rate

Poland highlyForeign investors have

given Poland a rating of

3.59 out of 5 for its

investment climate, with

61% of the 194 investors

polled by TNS Pentor

saying investment

opportunities in the

country are good or very

good. This was the best

result in the five-year

history of the survey.

What’s in

the meat?

Poland’s Agriculture and

Food Quality Inspectorate

found that almost 18%

of meat in 108 processing

factories investigated had

a different content than

that which was declared

by the producers. The

figure was more than 5%

higher than in the fourth

quarter of 2010. Cold

cuts of red meat were

found to contain more

water than was officially

declared, while products

such as sausage were

found to contain high

levels of fat, as well as

undeclared items

including cartilage,

tendons and chicken or

turkey skin.

Largest rabbi

metting

in Poland

since WWII

Hundreds of rabbis from

across Europe gathered

in Warsaw to attend the

Conference of European

Rabbis’ biannual

meeting last week. The

event was the largest

gathering of Jewish

leaders in Poland since

the World War II. ●

Politics

ZZiioobbrroo eexxppeelllleedd ffrroomm PPiiSSLaw and Justice’sdeputy leader and twocolleagues have beenbooted out of the party

Members of the European Par-liament Zbigniew Ziobro,Jacek Kurski and TadeuszCymaƒski have all beenexpelled from Law and Justice(PiS) after making a series ofpublic statements in which theyquestioned how the party func-tioned. The statements implicit-ly criticized the leadership ofthe party’s iron-fisted leader,Jaros∏aw Kaczyƒski.

Mr Ziobro, who was deputyleader of the party and is a for-mer justice minister, is one ofthe party’s co-founders.

Mr Ziobro’s problemsbegan on October 24 when hestirred controversy by droppinga bombshell in an interviewwith conservative daily NaszDziennik.

“Either PiS becomes a party

that will be capable of ruling onits own, or it will be necessary tobuild two political groupings – acentrist one and a nationalistone,” he told the daily.

The statement, interpretedby many as Mr Ziobro’s call fora break-up of PiS, drew strong

criticism from many politiciansfrom within his own party.

Mr Ziobro countered bywriting a letter to Mr Kaczyƒskiin which he asked the PiSleader to prevent members ofthe party from attacking him,simply for wanting to initiatepositive changes to the party.

In response to the letter,Adam Hofman, PiS’s spokes-

person, said Mr Kaczyƒski hadoffered a compromise. Thedeal entailed Mr Ziobro resign-ing as deputy leader of the partyand refraining from criticism ofPiS in public. In return, hewould gain the possibility to bereinstated as deputy leader, ifand when Mr Kaczyƒski saw fit.Mr Ziobro rejected the offer.

After a meeting of theparty’s political committee onFriday, Mr Hofman announcedthat the trio had been expelled.“There was no other alterna-tive. They will have seven daysto appeal the decision.”

After the commitee’s deci-sion had been announced, MrZiobro said “after the sixth con-secutive [election] defeat, wepresented a plan for victory.Unfortunately we were metwith a decision to throw us outof the party.” The MEPannounced that the trio wouldappeal the expulsion.

RReemmii AAddeekkooyyaa,,

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Greek Prime Minister GeorgePapandreou won a no confi-dence vote late last Friday,after agreeing to enter intopower-sharing talks. He pro-posed that a new coalition gov-ernment take charge of Greeceuntil a decision on acceptingthe euro zone’s bailout fund forGreece had been agreed.

The eyes of the world arefixed on Greece to see if itquickly accepts the terms ofthe bailout deal, which is need-ed to avoid Greek bankruptcy,and potentially to preventfinancial contagion through-out the euro zone.

Mr Papandreou is stillunder intense pressure fromboth his party and the opposi-tion to step aside. If he were tohand in his resignation – some-thing Mr Papandreou says hehas not ruled out – the creationof a unity government or earlyelections would follow.

Snap elections would be“catastrophic” for the deal, hesaid in an address to parlia-ment made before the vote.

Delay from the Greek par-liament in approving the new€130 billion debt deal finalized

by European leaders at theend of October could havegrave consequences. Shouldthe delay be too long, Greecemight not receive the nexttranche of foreign aid it needsto pay its debts and could gobankrupt by the end of theyear, possibly taking downother, much bigger Europeaneconomies, such as Italy.

Referendum announcement The vote came a day after theGreek government called off areferendum on the bailoutpackage.

When Mr Papandreoufloated the idea of a referen-dum last Monday, he said itwas a democratic necessity forsustaining the drastic austeritypolicies that are beingdemanded of Athens in returnfor further financial aid.

But Mr Papandreou wassummoned to explain himselfin Cannes, France, whereworld leaders were conferringfor the G-20 summit. There,for the first time since theGreek crisis began, FrenchPresident Nicolas Sarkozy andGerman Chancellor AngelaMerkel brought up the possi-

bility of Greece exiting theeuro. “Does Greece want tostay in the euro zone, yes orno?” Ms Merkel asked at anews conference. Mr Sarkozysaid the country would notreceive “a single cent” if itdoes not approve the bail outplan.

The whole G-20 meetingwas overshadowed by theGreek political crisis, but USPresident Barack Obama saidhe was confident that Europecould pull through. “Make nomistake, there is more hardwork ahead and more difficultchanges to make but our

European partners have laid afoundation on which to build,”said Mr Obama.

However, no deal involvingthe support of internationalpartners to rescue the eurozone materialized at the sum-mit. No G-20 nation commit-ted itself to financing the eurozone’s bailout fund, the Euro-pean Financial Stability Facili-ty (EFSF), either.

China, a key member of theG-20, has said it will not con-tribute to the fund until theGreek situation is resolved.

AAlliiccee TTrruuddeellllee,, RReemmii AAddeekkooyyaa

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World leaders at the G-20 summit were anxious for signs that Greece would quickly agree to the bailout deal

If the country does notquickly give the greenlight to the euro zone’sbailout, consequencesfor Greece, Europeand the globaleconomy could be dire

“We presented a planfor victory. ... They

decided to throw usout of the party”

NOVEMBER 7-13, 2011NNEEWWSS4 www.wbj.pl

Whirlpool

moves to

Poland

Whirlpool, the world’s

largest producer of home

appliances, plans to shift

production of

dishwashers from

Germany to Poland,

Rzeczpospolita reported.

The company already

operates a number of

production facilities in

Poland, but now wants

the country to become its

main dishwasher

production hub in

Europe. Whirlpool has

announced layoffs for

5,000 workers worldwide

in response to the

downturn.

Record profit

for PKO BP

Poland’s largest bank,

PKO BP, recorded a Q3

net profit of z∏.1.01

billion, up 20% y/y. The

result was the highest

quarterly net profit the

bank has ever recorded.

After three quarters of

2011, the bank’s total net

profit stood at z∏.2.85

billion. At the same time,

its costs-to-revenue ratio

has decreased by 1.5

percentage points y/y to

39.5 percent. ●

Captain TadeuszWrona has been haileda hero after nopassengers wereinjured in the incident

Polish pilot Captain TadeuszWrona managed to narrowlyavert disaster last Tuesday,when he safely executed theemergency landing of a Lot Pol-ish Airlines Boeing 767 at War-saw’s Chopin Airport. A prob-lem with the plane’s hydraulicsmeant the landing gear wouldnot deploy.

In a dramatic recording ofthe conversation between MrWrona and air traffic control,the pilot, after receiving permis-sion to land said, “We’re goingfor the landing. Thank you.”

Air traffic control replied,“Good luck. Flight 16 no land-ing gear.”

The Boeing, which was car-rying 220 passengers and 11crew members from Newark,New Jersey, landed on its bellyat the intersection of two run-ways. Sparks and flamesappeared beneath the plane asit slid to a halt. Emergency serv-

ices rushed to the scene, but noone was physically injured inthe incident, leading Mr Wronato be hailed as a national hero.

A Polish heroRecalling the final minutebefore the landing, Mr Wrona,who has flown for Lot for 20years, told a press conference,“I’ve flown this plane maybe500 times and the landing gearalways worked. This time it didnot … I was just thinking wemust not allow ourselves tomake a mistake and not tomake contact with the groundtoo hard.”

Mr Wrona was more modestin his own appraisal of hisachievement than most others,saying only that “we tried to putthe plane down as gently as wecould and we were successful.”

“When I stopped on therunway, I still was not sure thateveryone was safe becausesmoke and some burning fromfriction appeared on the ground… I felt huge relief when thehead flight attendant reportedthat the plane was empty,” headded.

Polish President Bronis∏aw

Komorowski said he wouldaward state orders to the crewof the plane. “To all thoseinvolved, and on behalf of thePolish nation, I say thank youwith all my heart,” he said in astatement.

Emotional landing The plane’s passengers werealso praised by members of thecabin crew for followinginstructions and evacuating theplane in just over one minute.

But flight attendant Grze-gorz Pietrzyk told a press con-ference that the landing wasvery emotional, even for thetrained staff on board theplane.

“It was after we carried outall the duties and sat down forthe landing that it came to methat these could be the last min-utes of my life,” he said. “Thatwas the most difficult moment.”

“I was thinking about myfamily, my children, my wife,

my brother and I wanted verymuch to see them again,” headded.

As a result of the incidentWarsaw’s Chopin Airportremained closed for more than30 hours, leaving many passen-gers stranded. The temporaryclosure cost the airport close toz∏.2 million in lost revenues, air-port director Micha∏ Marzecsaid when announcing the air-port’s reopening last Thursday.

DDaavviidd IInngghhaamm

Emergency landing

PPoolliisshh ppllaannee ffoorrcceedd iinnttoo eemmeerrggeennccyyllaannddiinngg aatt WWaarrssaaww’’ss CChhooppiinn AAiirrppoorrtt

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The Boeing 767 landed on its belly at the intersection of two runways

Canal+ will buy aminority stake in thecompany that ownsTVN, and the twofirms will merge theirsatellite platforms

In a complicated deal thatanalysts expect will increasecompetition in Poland’s pay-TV market, Vivendi’s Canal+announced last week that itwill buy a minority stake inNeoVision, a company whichhas a 51 percent stake inTVN, Poland’s largest com-

mercial TV broadcaster interms of audience figures andrevenues.

Canal+ will be offered theoption to purchase the rest ofNeoVision’s controlling stakein the future, TVN’s manage-ment board wrote in a state-ment.

At the same time, the twocompanies announced theywould merge Canal+ satellitepay-TV unit Cyfra+ withTVN’s “n” platform in a jointventure. In this deal, Canal+will take the majority stake.

“TVN Group and Canal +

Group will combine theiroperations in the pay TV sec-tor under a joint ventureaimed at creating a commondigital DTH platform inPoland,” TVN wrote in a pressrelease.

The effect will be to create astrong competitor for the cur-rent market leader in Poland’ssatellite-TV market, CyfrowyPolsat, which has around 3.5million subscribers. The newentity will have a total of 2.5million customers.

Konrad Ksi´˝opolski, ananalyst at Espirito Santo, said

that the merged entity wouldhave an advantage in that it willbe able to provide a wide vari-ety of sports and movies on thesame network.

“Consolidating these plat-forms means that Cyfra+ willhave a more competitive offerthan it did before. Until now,clients had to choose betweendomestic European leaguesand the Champions League,but once this merger occurs,there should be one offer,” hesaid.

IIzzaabbeellaa DDeeppcczzyykk DDaavviidd IInngghhaamm

Television

CCaannaall++ aanndd TTVVNN jjooiinn ffoorrcceess iinn ccoommpplleexx ddeeaall

Analysts say thedevice’s high pricemay mean it won’t besuch a hit in thePolish market

The iPhone 4S, the fifth gener-ation of Apple’s iPhone, willbe available in Poland fromFriday, November 11, withcustomers able to pre-orderthe phone from November 4.

Sales of iPhones have rock-eted in recent years, with thenumber of units sold world-wide growing at an annual rate

of 93 percent between 2009and 2010, and 81 percentbetween this year and last.Sales of the iPhone came to$47 billion in fiscal year 2011,more than double the amountbrought in by Mac computersand by far the best-performingproduct for the Americantechnology retailer.

As for the iPhone 4S,Apple sold over four millionunits in the first three daysafter its initial launch (in theUS, Australia, Canada,France, Germany, Japan andthe UK) in mid-October.

“Customer response to iPhone4S has been fantastic, we havestrong momentum going intothe holiday season,” saidApple CEO Tim Cook in astatement after the first week-end of sales.

Europe is Apple’s second-largest market in terms of sales,but Marek Kujda, an analyst atIDC Polska, said he does notexpect massive sales in Polandonce iPhone 4S hits stores.

“The iPhone 4S will be quiteexpensive and this will preventhuge sales in Poland,” he said.On the Poland Apple Store

website, the prices for theiPhone 4S start at z∏.2,699($860).

Currently, iPhones make upjust 3 percent of the total Polishsmartphone market, and 1 per-cent of the combined smart-phone market (high-enddevices) and feature phone(lower end devices), said MrKujda.

Apple is launching itsiPhone 4S simultaneously in 14other new countries. The firmexpects to be in more than 70countries by the end of the year.

VVeerroonniikkaa JJooyy,, AAlliiccee TTrruuddeellllee

Mobile phones

iPhone 4S set for a lukewarm launch in Poland?

NOVEMBER 7-13, 2011 BBUUSSIINNEESSSS www.wbj.pl 5

Anna HermanAttorney

Legal Forum

As an entrepreneur you might beaware that the Polish Civil Proce-dure Code is considered one of themost restrictive procedural regula-tions in Europe. A recent amend-ment to the code, approved by par-liament in September, will comeinto force within six months of itspublication.

Among other things, the amend-ment derogates regulations relatedto a particular procedure for entirepreneurs. The procedure in ques-tion imposes certain restrictionsand concerns the provision byentrepreneurs of statements,charges and evidence to a court.

According to the regulation stillin force, an entrepreneur acting asa claimant is obliged to present allfacts and evidence in the state-ment of claim under pain of losingthe right to present them at a later

stage of the procedure. The defen-dant is under the same obligation.This often results in rulings that donot take into account the actualstate of affairs. This is particularlyunreasonable for small companiesand individual entrepreneurs, whichare often not able to afford a levelof legal assistance which wouldallow them to comply with therestrictive regulations.

The said amendment grants thejudge authority to impose the rele-vant restrictions on parties, usinghis own discretion. As a result, thejudge’s position related to this pro-cedure will become more power-ful.

The amendment ought to beconsidered reasonable and posi-tive. It submits litigation betweenentrepreneurs to general proce-dure, meaning it introduces equal

rules of proceedings for entitiesparticipating in litigation, irrespec-tive of whether or not they conducta business activity.

Potential resultsThe amendment is designed tosimplify the procedure. But is thatreally going to happen?

According to the new regula-tion, the judge will decidewhether the defendant is obligedto file a statement of defensethat indicates all relevant factsand evidence. Furthermore,before the first hearing, the judgemay also oblige both parties tofile additional written statementsbefore a certain period of timehas elapsed. Obliging the partiesto do so, the judge will informthem about the negative conse-quences of failing to meet the

indicated deadline. Mainly incase of delay, statements andevidence will not be taken intoconsideration by a court while itis making a ruling, unless a partyproves that (i) the delay was notdue to its own fault or that (ii) thecourt’s reviewing of the delayedstatements and evidence will notprolong the procedure unreason-ably.

In case the judge does notoblige the parties to file writtenstatements, they will both be ableto present facts and evidence per-taining to the subject of the litiga-tion until the case is closed. Pre-sented facts and evidence must betaken into account by the courtwhile it is making a ruling. There isonly one rule limiting the parties inthis aspect, namely that the courtshall ignore statements and evi-

dence if they are submitted exclu-sively to delay recognition of thecase or if disputable aspects of thecase have already been clarified inthe course of the proceedings.

Conclusion The obligation for a party to indi-cate facts and evidence within acertain period of time will be decid-ed by the relevant judge. In prac-tice, the judge may allow the par-ties to present their positions byallowing facts and evidence to bepresented without time limits, orhe may impose restrictive obliga-tions on parties.

The application of this aspect ofthe Civil Procedure Code will bedecided by individual judges.Whether restrictive or not, the lawwill therefore be applied to eachparty on an individual basis. ●

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

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TVN is Poland’s largest commercial broadcaster

iPhone frenzy

Net sales by product ($ billion) 2011 and 2010,

with percentage change

Product 2011 change (%) 2010

Desktops 6.4 4 6.2

Portables 15.3 36 11.3

iPod 7.5 10 8.3

Other music related products and services 6.3 28 4.9

iPhone and related products and services 47.1 87 25.2

iPad and related products and services 20.4 311 4.9

Peripherals and other hardware 2.3 28 1.8

Software, service and other sales 2.9 15 2.6

Total net sales 108.2 66 65.2

Source: Apple annual report 2011

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NOVEMBER 7-13, 2011BBUUSSIINNEESSSS6 www.wbj.pl

Gas imports

PGNiG begins importingRussian gas from GermanyIt may be able to usethis fact as abargaining chip whenit negotiates gas priceswith Gazprom

Polish state-owned gas monop-olist PGNiG has begunimporting an undisclosedamount of Russian gas fromGermany, instead of directlyfrom Russia as it usually does,in order to pay a lower pricefor the fuel. The move mayalso help PGNiG force Russiato lower the amount it chargesfor direct supplies, analysts say.

PGNiG will pay about 10-15 percent less for the Russiangas it imports indirectly thanfor the gas it imports straightfrom Russian state-owned gasgiant Gazprom. German sup-pliers buy the gas at prices of

around 20 percent less thanPGNiG.

In October, the Polish com-pany said that if Gazprom didnot lower prices of gas under along-term contract signedbetween the two companies, itwould refer the matter to anarbitration court. The dead-line for the ultimatum to bemet was last Monday, butGazprom had not lowered itsprices by then.

PGNiG’s decision toimport Russian gas from Ger-many may help convinceGazprom to lower gas pricesfor PGNiG without the needfor arbitration, some analystshave said.

“The most important rea-son for the decision was simplyto get cheaper gas importprices, but it will probably alsohelp PGNiG in its talks with

Gazprom – diversification ofsupplies is a valuable thing,”said ¸ukasz Prokopiuk, ananalyst at DM IDM SA.

“The supply deal also giveshope that the regulator inPoland will lower the price ofgas for consumers,” he added.

The Polish company signeda deal with Polish state-ownedgas pipeline operator Gaz-Sys-tem last Monday for the trans-port of gas from suppliers inGermany along the Yamal-Europe pipeline.

The transaction was madepossible by virtual reverse flowtechnology, which allows thedirection of the flow of gas to bereversed. The pipeline’s reverseflow capacity to Poland is about2.3 billion cubic meters peryear. Poland uses around 14 bil-lion cubic meters of gas a year.

GGaarreetthh PPrriiccee

PMI reading shows growthin manufacturing outputPoland’s manufacturing Pur-chasing Managers Index(PMI) came in higher thanexpected in October, as manu-facturing output rose at itsfastest rate in three months.The PMI reading was 51.7 forlast month, up from 50.2 forSeptember.

A figure of above 50 indi-cates expansion in the manu-facturing sector, while a num-ber below 50 suggests contrac-tion.

October’s reading exceed-ed the expectations of analystspolled by daily Rzeczpospolita,who forecast a fall in PMI toan average of 49.9 points.

Despite the ongoing weak-ness in export markets, outputcontinued to expand on theback of domestic demand,Markit, which compiled thePMI reading, wrote in areport.

“It appears that domesticdemand strength in Poland isholding up, despite weaknessin the global outlook,” DrMurat Ulgen, HSBC chiefeconomist, Central & EasternEurope and sub-SaharanAfrica, said in the report.

Poland’s manufacturingsector continued to create jobsin October. The workforceexpanded for the 15th succes-sive month and, in line withthe trend for output, at itsfastest pace since July, Markitwrote. IIzzaabbeellaa DDeeppcczzyykk

* Indicates improvement on the previous month

40

45

50

55

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Octobe

r 201

1

Septe

mber 2

011

Augu

st 20

11

July 2

011

June 2

011

May 20

11

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2011

March 2

011

Febru

ary 20

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Janua

ry 20

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ber 2

010

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Octobe

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Still positive

Poland's PMI, August 2010-August 2011

Source: Markit

Automotive market

KKuullcczzyykk sseellllss aauuttoommoottiivvee hhoollddiinnggss ttoo VVoollkksswwaaggeennThe German carmaker will sooncontrol a fifth of thePolish automotivemarket

Polish billionaire Jan Kulczykis divesting himself of his auto-motive operations. A 50.1 per-cent stake in his automotivebusiness, Kulczyk Pon Invest-ment (KPI), will go to Volk-swagen AG.

Volkswagen AG will alsotake over Kulczyk Holding’s49 percent stake in SkodaAuto Polska, while Volkswa-gen Financial Services andVolkswagen Bank will acquire

KPI’s minority stakes in Volk-swagen Leasing Polska andVolkswagen Bank Polska,respectively.

Volkswagen is expected totake control of all these com-panies on January 1, 2012. Thiswill give it control of 20 percentof the Polish automotive mar-ket, according to analysts.

The companies being takenover by Volkswagen deal withthe import and wholesale ofVolkswagen, Audi, Porscheand Bentley brands in Poland.

The combined value of MrKulczyk’s automotive holdingshas been estimated at aroundz∏.700 million, although Kul-czyk Investments, Mr Kul-

czyk’s investment company,declined to comment on theprice of the deal. A spokesper-son also declined to discuss thebusiness strategy behind thesale. However, a source closeto the deal told WBJ that thesale was not meant as a way togain capital, but as a “strategicdecision.”

Mr Kulczyk is now expect-ed by many analysts to turn hisattention once again to theenergy market. The statebroke off negotiations with MrKulczyk for a controlling stakein utility Enea, valued at overz∏.5 billion, in December 2010.

A majority stake in Enea islikely to be put up for sale

again, this time at the turn of2011 and 2012, said Pawe∏Puchalski, head of equity

research at BZ WBK’s broker-age house. However, he addedthat there was not necessarily

a direct link between Mr Kul-czyk’s decision and the upcom-ing Enea sale. AAlliiccee TTrruuddeellllee

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Volkswagen is set to take over Mr Kulczyk’s automotive holdings on January 1, 2012

NOVEMBER 7-13, 2011 BBUUSSIINNEESSSS www.wbj.pl 7

EU-wide trade

PPlleennttyy ooff ppootteennttiiaall,,lliittttllee eenntthhuussiiaassmm

Despite the EU often toutingits open internal market, busi-nesses and consumers are stillnot benefiting as much as theycould. The European Commis-sion has found that across thebloc, only 10 percent of com-panies sell their goods andservices outside national bor-ders. An even smaller propor-tion of consumers buy onlinefrom other EU states. At atime when European business-es desperately need to tap intothe continent’s 500 millionconsumers, and customerscould benefit from increasedcompetition, the figures paint aworrying picture.

The EC has therefore putforward a proposal, set to bediscussed this week at a confer-ence in Warsaw, that wouldcreate an alternative legalregime in an effort to makecross-border commerce easier.Buyers and sellers of goods inEU countries could opt to usethis system – which would beexactly the same in all 27 EUmember states – instead ofhaving to navigate and adapt tonational contract law in everycountry where they do busi-ness. Researching these lawscosts companies between€10,000 and €35,000 per coun-try, and constitutes one of themain reasons why so manyEuropean SMEs don’t, accord-ing to the EC.

The novelty of the propos-al, set to be adopted by 2013, isthat it would be optional.

“It’s a very innovativeapproach, and I think mostpeople don’t understand it,since it has never been donebefore, but I think politicalleaders in time of crisis mustthink outside the box,” EUJustice Commissioner VivianeReding recently told journal-ists.

The Polish cheerleaderAt a time when the euro-zonecrisis is overshadowing manyof Poland’s original goals for itssix-month presidency of theEU Council, the Polish govern-ment has emerged as one ofthe staunchest supporters ofthe proposal, which could“release the potential of thesingle market,” according tothe Polish presidency’s website.

“It is estimated that intra-EU trade could increase by€26 billion if entrepreneursfully exploit the potential ofcross-border trade,” said Jus-tice Minister KrzysztofKwiatkowski, whose ministrycurrently oversees the projectat the EU level.

Bartosz Wy˝ykowski, anexpert in the legal departmentof the Polish Confederation ofPrivate Employers Lewiatan,said the proposal offers con-sumers better protection thannational laws. Lewiatan, whichrepresents about 3,500 compa-nies, says that its memberswould value a useful, cost-effective instrument allowingthem to make contracts acrossEurope.

Finnish mobile telephonemaker Nokia, an importantforeign investor in Poland, hassaid it views the proposal posi-tively. Polish cosmetics firmLaboratorium KosmetyczneDr Irena Eris has said the pro-posal could help its sales inRomania, where differences incontract law currently lead toconsiderable cost.

Skepticism abounds“Theoretically, a Polish tradercould expand all its activityacross Europe and even out-side by using one legal instru-ment,” said Mr Wy˝ykowski.“But I would be lying if I saidour members are very excited

by the proposal,” he added.Lewiatan is open to the initia-tive, but most other businessorganizations in Europe see nobenefit, he added.

One of the barriers is thatas a European law, it seemscomplicated and far removedfrom businesses’ daily con-cerns. Graham Wynn, an assis-tant director at the BritishRetail Consortium, said theEC “has failed to make thisexciting, rather than dry andlegal. It’s a pity, [because] Ithink people forget what it waslike before we had customsunions.”

Arnaldo Abruzzini, secre-tary general of the Associationof European Chambers ofCommerce and Industry,argued that there are manyother obstacles to EU-widetrade than contract law, such aslanguage and taxes, and thatthis proposal is only a result ofa failure to agree on a manda-tory common consumer rightsdirective.

Many also fear that the ECwill eventually decide to makethe law mandatory. “Provision-ally we are in favor of the pro-posal, but we received the finalversion two weeks ago, andhaven’t had enough time toreview the entire document.It’s possible we will findground to be worried about thepossibility of the law becomingmandatory in the near future,”said Mr Wy˝ykowski.

Although EC officialsadmit that the proposal is nomiracle cure for the currentdebt crisis, it is presented asone element to the solution.Ms Reding, for her part,remains undeterred.

“You couldn’t come up witha better piece of legislation,”she said. “I patiently explainthat I do not want to intervenein national markets and I amconfident that the proposal willbe adopted because, simply, itmakes sense.”

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Justice Commissioner Viviane Reding said political leaders must think outside the box

The Polish EU presidency is pushing a proposalthat could boost cross-border trade throughoutthe EU, but it is failing to excite the businesscommunity

NOVEMBER 7-13, 20118 www.wbj.pl BBAANNKKIINNGG IINN FFOOCCUUSS

Conference space with history and elegance

Sponsored article

The Banking and FinancingCenter offers the perfectmodern conference settingin a historic Warsaw location

Built in Communist times as theseat of the Central Committee ofthe Polish United Workers Party (KCPZPR) the Banking and FinancingCenter (Centrum Bankowo-Finan-sowe, CBF), located on the cornerof ul. Nowy Âwiat and Al. Jerozolim-skie, is a well-known office complexlocated in the center of Warsaw.

CBF currently offers a complexof conference halls with receptionand meeting areas available forrent that provide the perfect envi-ronment for high-level meetings.The rooms are air-conditioned, andequipped with multimedia projec-tors, screens, flip charts, a soundsystem with recording capabilitiesand internet access.

The CBF building’s main assetsinclude the diversified size of thehalls offered and reasonable rentalprices. For bigger events we rec-ommend the courtyard with a foun-tain or the main hall with a terracefrom which the National Museumand the Park na Ksià˝´cem are visi-ble. Since it’s located in the heart ofWarsaw, the building also offers

excellent transportation connec-tions to all parts of the city.

Historic settingDuring the times of the KC PZPR,a cinema was connected by asecret staircase to the personaloffices of the First Secretaries. It

was one of few places where onecould watch a movie before it wascensored. And now, more thantwo decades since it was used forthis purpose, we have renovatedthe cinema and installed modernconference equipment, allowing itto provide seating for up to 138

people.Conference Hall A, located on

the first floor, is the former person-al office of First Secretary of theKC PZPR W∏adys∏aw Gomu∏ka.During the period between 1970and 1980, when Edward Gierekwas First Secretary, the office and

adjacent rooms were transformedinto a conference hall which nowoffers room for 120 people.

Conference Hall B is located inthe former personal office of for-mer Polish President Boles∏awBierut. Currently 40 people can sitthere in comfortable armchairsaround the oval table to discussimportant issues.

Meeting Hall B, which wasBoles∏aw Bierut’s reception office,is an elegant marble room, idealfor smaller business meetings ofbetween15-26 people.

Meeting Halls A1 and A2served formerly as the office ofWalery Namiotkiewicz (Mr Gomu∏-ka’s personal secretary) and thesecurity room, respectively. Theyare ideal for organizing businessmeetings for between 12-20 peo-ple, at either a round table or in abanquet setting. In addition it isalso possible to rent these roomsfor a few hours only.

There is also a spacious marblefoyer behind the conference halls,which is the perfect place fororganizing food and drinks for asmany as 100 conference partici-pants. The foyer can also serve asa separate meeting room for 40people. ●

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Banking & technology

PPoollaanndd’’ss bbaannkkiinngg mmaarrkkeett aaddjjuussttiinnggttoo iinnnnoovvaattiivvee tteecchhnnoollooggiieess But there’s still plentyof unknowns for asector that has to keepup with such rapidlydeveloping technologies

Poland’s banks are alreadystarting to use some of the latesttechnologies to enhance andimprove their services, but thelong-term direction that thesector is heading in remains

unclear. Experts at the 2nd annual

Warsaw International BankingSummit, held in late October,generally agreed that Poland ismoving in the right direction,and is one of the leaders in bio-metrics and mobile payments inEurope. However, it remainsunclear which type of compa-nies can take the lead, whetherit will be banks, tech giants, pay-ment firms or mobile operators.

Moreover, it is still not com-pletely clear which applicationsand technologies customers willtake to.

Smartphones to dominate?What is clear, however, is thatsmartphones will play a pivotalrole in the way new bankingtechnologies will be utilized.According to Piotr Widacki, thedirector of internet banking atAlior Bank, customers inPoland are already takingadvantage of the services banksoffer on smartphones, addingthat 40 percent of mobilephones in Poland are smart-phones.

“Sixty-six percent of userssleep with their smart-phones,”said Serge Ferré, who was vicepresident of Nokia Europefrom 2004 to 2010 and currentboard member of WISeKey, aninternet trust and digital identi-fication company.

The surge in smartphoneuse is expected to have a directimpact on the banking industry,with experts saying that mobilecommerce conducted on smart-phones will increase.

According to surveys con-ducted by First Data Polska,which provides merchant pro-cessing services, 46 percent ofPoles currently use debit andcredit cards, while 16 percentuse proximity cards and 38 per-cent mobile payment methods.Many transactions using thesepayment methods can alreadybe made via smartphones.

Mobile commerceAccording to Maciej Maciejew-ski, senior manager for mobile& contactless at Visa Europe,“Poland will be a leader formobile payments in Europebecause it has already built the

infrastructure.”Grzegorz D∏ugosz, a board

member at First Data, said,“Fifty-two percent of Polesbelieve that mobile paymentsare easier than payment cards,”adding that the average mobilepayment transaction in Polandis z∏.12.

But the plethora of paymentoptions available could prove aproblem for some consumers.WISeKey’s Mr Ferre said thatfor some, mobile commerce isneither fun nor easy, and theymay therefore choose not toengage in it. He said companiessuch as Facebook, Google orApple are likely to play a lead-ing role in creating mobile com-merce solutions that are moreaccessible for these reluctantusers.

Jakub Grzechnik, managerof new business development atMasterCard Europe, said,“people think about what theywant to buy not how they wantto buy it.”

Impact on bankingAlior Bank’s Widacki said thatwhile mobile banking will not

replace internet banking, thetwo will coexist.

According to TadeuszWoszczyƒski, director of thesystem solution department atHitachi Europe in Poland, bio-metrics will play a greater rolein the future, adding that it willsoon become a “common tech-nology.”

Biometric technology allowsfor more secure use of bankingservices by using distinctive,measurable characteristics,such as face, voice and finger-print recognition to identifyindividual users.

Mr Woszczyƒski said thatPoland is second only to Turkeywhen it comes to biometricstechnologies and that the Min-istry of Infrastructure wants topromote the technology furtherby offering tax breaks of 50 per-cent on its use.

Experts say that smart-phones may become integratedwith biometric technologies,suggesting that providers of var-ious types of banking technolo-gies will have to work evenmore closely together in thefuture. EEllllaa PPaa∏∏kkaa

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Poland is a leader in biometrics technologies

NOVEMBER 7-13, 2011 OOPPIINNIIOONN && AANNAALLYYSSIISS www.wbj.pl 9

B y now, everyone knows thatGermany is calling the shotsnot just in the euro zone, but

across all of Europe. Inside Ger-many, there used to be endlessdebates about national identity –what one historian called “the contin-ual dispute about what being Ger-man might mean.” But, in foreign-policy terms, post-war West Germany– and, later, reunified Germany – wasutterly predictable: never against theWest; always for more Europe. Now,the “Berlin Republic” is very secureabout its identity – and seemingly atsea in its dealings with the world.

There are structural reasons forthis change. Germany is too small tobe a global player, but too big to bemerely first among equals in Europe.While Germans generally see nolegitimacy in a global role, even inalliance with the country’s old part-ners, Germany’s neighbors do notfind a German-led Europe legitimate.

Overcoming the pastContrary to the fears of many of theseneighbors in 1990 (and contrary towhat many analysts claim now), theBerlin Republic is not more national-istic than the old West Germany. True,the left-liberal pacifist milieu that inthe old Federal Republic dispropor-tionately influenced published opinionwith its political pieties disappeared

during the 1990s,but today’s more“normal” Germanydid not begin forget-ting its Nazi past andreasserting itself as aGreat Power.

To the extentthat there is a newGerman patriotism,it is ironic; if there ispride, it is pride inhow thoroughly thecountry has dealtwith the doublelegacy of Nazismand East Germanstate socialism (in addition to pride inthe economy and the constitution).

Moral disputes over history, oncethe most acrimonious in post-warEurope, are over. Nobody wants torepeal citizenship legislation thatmakes birthplace, not bloodlines, thebasis of belonging, and everybody isproud that right-wing populism hasnever taken off in the way that it hasamong some of Germany’s neigh-bors. Indeed, while received opinionhas moved to the right on economicsand foreign policy since 1990, theparty spectrum as a whole has movedto the left.

Germany’s behavior today is notdriven by nationalism (not even eco-nomic nationalism), but by German

elites’ loss of a political compass, aswell as the Berlin Republic’s newdomestic and international circum-stances. Berlin is not sleepy Bonn,and the world of the 24-news cycle isnot the same as the clubby atmos-phere of the old Federal Republic,where only the opinion of one or twonewspapers mattered.

No game planIn foreign policy, Germany has noreal global game plan: witness itsblunders over Libya, and its clumsyattempts to gain a permanent seat onthe United Nations Security Council.In Europe, Germany is obviously theindispensable nation, yet it lacks notonly a clear mandate to lead, but also

a clear sense ofwhat the EuropeanUnion should looklike after the greatprojects of peace,the common mar-ket, and enlarge-ment are more orless completed.

Previously, thequestion of Eu-rope’s final shapecould be postponedor finessed. Now,Chancellor AngelaMerkel has had themisfortune of inher-

iting an incoherent project (a currencyunion without fiscal and politicalunion) – a situation that demandssome type of vision from a politicianfamously good at everything but artic-ulating one. Thus, Germany’s politicalclass, confused about what it wants andgenerally unable to explain to citizenswhat it does, has responded with short-term solutions: yes, more Europe, butno European state; yes, more moneyto pour down fiscal black holes, but nodeparture from the old Bundesbankorthodoxies.

Ms Merkel’s style has exacerbatedthis confusion: she prefers to leadfrom behind and seems incapable ofthe stateswoman-like speech thatwould bring people to accept bolder

measures. Others have filled this vac-uum. Even the most banal statementsof Helmut Schmidt and HelmutKohl, pronouncing from retirementon the dangers of betraying theirEuropean dream, are adored asshimmering pearls of wisdom.

What next?Unlike in the post-war decades, Ger-mans no longer want to escape to“Europe” from their difficult father-land. Today’s generations are far toocomfortable with being German tosee Europe as the answer to all oftheir problems.

Still, they probably would be will-ing to do much more with and forEurope if someone explained why itfits their ideals and interests. Talk of anew, Europe-friendly constitutionindicates that they might even be will-ing to give up what, along with theDeutschmark, was the old FederalRepublic’s most prized possession:the Basic Law, arguably the world’smost successful constitution duringthe last half-century. But Germanswill not give it up for nothing. ●

Jan-Werner Mueller teaches atPrinceton University. His latest bookis Contesting Democracy: Political

Ideas in Twentieth-Century Europe.Copyright: Project Syndicate,

2011.project-syndicate.org

A central bank always has a cru-cial role to play in a financialcrisis. But the European Cen-

tral Bank’s role within the euro zonenowadays is even more “central” thanthat of the Federal Reserve or theBank of England.

A key difference between the eurozone and the United States is thatlending between two banks located intwo different member countries isstill perceived as carrying quite differ-ent risks than “domestic” lending.This is not the case in the US,because it has an integrated financialsystem, and support for banks isadministered at the federal level.

As a result, the fact that Californiamight be closer to bankruptcy thansome euro zone countries has noinfluence at all on the credit rating ofbanks headquartered there, or ontheir ability to obtain funds on theinterbank market. In Europe, by con-trast, the fate of all banks dependsupon their home governments.

Bank runNow that the “southern” euro zone

governments’ solvency no longerseems assured, distrust has grownalong national lines. German bankscontinue to lend to each other (andto other banks in northern Europe),but they are no longer willing to lendto Italian, Spanish, or other banks insouthern Europe.

A bank that suddenly has to repayits interbank debt must cut credit toits own customers or sell off otherassets, leading to large losses. This isprecisely what happened when theinterbank market froze after LehmanBrothers collapsed in 2008.

When the cross-border interbankmarket stopped working this sum-mer, a similar economic collapse wasavoided only because the ECB, with-out much fanfare, became the eurozone’s central clearing house. Ger-man and other northern Europeanbanks that no longer trust theirsouthern counterparts parked theirfunds at the ECB’s deposit facility,whereas southern European banksused the ECB’s lending facilities tomake up for the loss of private inter-bank funding.

Regions and riskRegional imbalances in interbankfunding can, of course, also arise inthe US Federal Reserve System. Butthey are mostly intermediated withinnationwide financial institutions.

Adjustment to shocks is also inde-pendent of location in the US. In theeuro zone, however, banking is stillpredominantly concentrated alongnational lines. A savings surplus inGermany is recycled to Spain mainlythrough interbank lending (Germanto Spanish banks). Moreover,although the EU is supposed to havean integrated banking market, thefew existing cross-border bankinggroups are not even allowed to oper-ate as integrated international banks,because national regulators andsupervisors are “ring-fencing” the liq-uidity and assets of foreign banks’local subsidiaries. For example, aninternational banking group head-quartered in Italy was recently barredby supervisors from using the cashsurplus of its subsidiary in northernEurope to fund the group’s opera-tions elsewhere.

That would have been impossiblein the US, given that the supervisorsare federal.

Imperfect integrationA further difference between theeuro zone and the US is that the Fed-eral Reserve normally lends onlyagainst public debt, and accepts onlyfederal debt (T-bills) as collateral.Banks thus cannot use any holdingsof California or Texas state debt toobtain central-bank funds. The ECB,on the other hand, accepts privateassets and, in the absence of federaldebt, national debt as collateral.

This puts the ECB in a very differ-ent position from the Fed, becausethe quality of its collateral is deter-mined along national lines. For exam-ple, Greek banks have received morethan €100 billion in ECB financing,which is secured by a mix of privateGreek assets and Greek governmentdebt. If the Greek people were todecide in a referendum to default,the ECB would incur large losses, asmuch of its collateral would becomeworthless and the Greek banking sys-

tem would collapse.The imperfect integration of

Europe’s financial markets and super-visory structure thus risks overburden-ing the ECB, which has had to becomethe central counterparty for cross-bor-der lending. But in this function it hasaccumulated large risks, concentratedalong national lines, thus leading toconflicts among member states.

Put the pieces togetherA common money and a commonmonetary policy cannot work properlywith a banking system that is segmentedalong national lines. The most urgentstep to stabilize the euro is not to followthe chimera of “euro economic govern-ment,” but to create the underpinningsof a truly integrated banking marketwith a common supervisor, a form of“federal” deposit insurance, and a“euro bank rescue fund” for the largecross-border institutions. ●

Daniel Gros is director of the Cen-ter for European Policy Studies.

Copyright: Project Syndicate,2011.project-syndicate.org

WWhhaatt ddooeess GGeerrmmaannyy wwaanntt??

TThhee EECCBB’’ss rriisskkyy bbuussiinneessss Daniel Gros

Jan-Werner Mueller

CO-MANAGING EDITOR

GARETH PRICE(GPRICE@WBJ.PL)

CO-MANAGING EDITOR

ALICE TRUDELLE(ATRUDELLE@WBJ.PL)

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REAL ESTATE EDITORADAM ZDRODOWSKI(AZDRODOWSKI@WBJ.PL)

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INTERNSIZABELA DEPCZYK VERONIKA JOY

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

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

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NOVEMBER 7-13, 201110 www.wbj.pl SSPPEECCIIAALL RREEPPOORRTT:: BBOOAATT MMAAKKEERRSS

A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce

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Hybrid car

sales growing

Since fully electric cars

can be expensive, Polish

customers are showing a

preference for more

affordable and practical

hybrid vehicles. From

January to September of

this year, the sale of

hybrid cars in Poland

almost doubled in

comparison to the same

period of last year.

According to the Samar

Institute, an automotive

market research body,

741 hybrid cars were

registered in Poland in the

first nine months of 2011.

E-commerce

expansion

At the end of 2010, there

were 10,000 e-stores

operating in Poland and

that number is growing,

reported Rzeczpospolita.

Over the last year, global

companies such as

Auchan, Gap and Inditex

(the owner of Zara) have

entered the Polish

e-commerce market.

“Although an e-store may

now bring in the same

income as a regular store,

it reaches more clients,”

said Piotr Jarosz, an e-

commerce analyst from

portal sklepy24.pl. ●

Poland’s boat-building industry

NNaavviiggaattiinngg rroouugghh wwaatteerrss

Following the decline ofPoland’s shipyards, the con-struction of yachts, pleasurecrafts and sports boats hasgained in importance for thecountry’s maritime economy.

“The yacht- and boat-building industry has a longtradition in Poland,” AndrzejBartosiewicz, the president ofAdmiral Boats, a Polish pro-ducer and distributor of sportsand pleasure boats, told WBJ.

“It has developed inde-pendently of the large ocean-going ship production sector inPoland, although the reputa-tion of the large Polish ship-yards in Gdaƒsk, Gdynia andSzczecin may to some extenthave helped to boost theimage of smaller shipyardsproducing boats and yachts,”he added.

Crowded seasSome 920 companies operatein the yacht- and boat-buildingsector, according to a 2009report by KPMG. Six compa-nies, Delphia Yachts Kot,

Galeon, Ostróda Yacht, Balt-Yacht, Model Art/Parker andÂlepsk, account for as much as60 percent of all production inPoland.

One area of strength forthe industry is the constructionof motor boats of between sixand nine meters in length,although Polish producers alsoturn out yachts measuring over20 meters. The Polish Cham-ber of Marine Industry andWater Sports (POLBOAT)estimates that up to 95 percentof vessels produced in Polandare exported, mostly to coun-tries in Western Europe. Pol-ish producers are also active inexport markets beyondEurope, particularly in Russia,the United States, the MiddleEast and Australia.

It is now one of POL-BOAT’s strategic aims toincrease sales of Polish-pro-duced boats within Polanditself. One of the factors whichit is up against, however, is astrong do-it-yourself cultureamong Poles.

“Polish clients [of yacht andboat builders] today are allabout do-it-yourself produc-tion,” Sebastian Nietupski, thevice-president of POLBOAT,told WBJ.

“This means that the client

buys the components of theboat – the hull and the sailsand so on – and assembles theboat in their garage,” he said.“In order to avoid excessivecosts, a typical Pole tends tobuild their own yacht.

POLBOAT is fighting againstthis phenomenon, becausesuch “DIY” boats are less safeto use. And indeed, there hasbeen a small increase in thesale of new boats in Polandrecently,” Mr Nietupski added.

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Polish boat producers have been competitive in international markets due to their

ability to combine quality with low prices

Poland’s makers of yachts, sports boats andpleasure crafts have regained the initiativefollowing the 2008-2009 financial crisis. Canthey count on continued growth?

NOVEMBER 7-13, 2011 SSPPEECCIIAALL RREEPPOORRTT:: BBOOAATT MMAAKKEERRSS www.wbj.pl 11

Pick up the latest edition of Warsaw Business Journal Group’s popularseries of busines guides.

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It’s not as if there isn’t anydemand for yachts, pleasureboats and sports boats inPoland – boating is very popu-lar in the country, and hasbeen developed alongside thetourism industry in manyareas. Boating is a key part ofthe economy in the MasurianLake District, for example.

However, despite thepotential of the domestic mar-ket, Poland’s boat-makers willlikely retain their focus on for-eign markets, where they haveachieved considerable success.

Making wavesPolish boat-producers havebeen competitive in interna-tional markets due to theirability to combine quality withlow prices. This has attractedindividual and multinationalclients, often leading tolonger-term cooperation.

“The effect of the econom-ic crisis has been to show thatto compete for clients, youmust offer low prices and highquality – whether it is for theend client, or for a large multi-national company with its pro-duction base in Poland,” MrNietupski said.

“An increasing number offoreign boat builders are

deciding to find partners inPoland, and to transfer pro-duction to the country – lowproduction costs and highquality are our strengths,” headded.

This competitive edge hasenabled Polish producers tobounce back from the depthsof the economic crisis, withKPMG expecting productionto grow by 10 percent in 2011.This would mean a total out-put of around 17,000 yachts.

In 2010, output stood ataround 15,500 yachts, com-pared with just 12,000 and11,000 in 2008 and 2009respectively. This followed2007’s record total of 22,500.Total output is one of the mostreliable indicators of thehealth of the industry, sinceproduction of yachts and boatsis based almost entirely onorder numbers.

One company currentlyexperiencing healthy foreigndemand for its products isAdmiral Boats. The firm sup-plies its pleasure and sportsboats to importers in WesternEurope, which buy Admiral’sproducts wholesale and sellthem in their home markets.

“In the near future, weplan to almost double the

number of boats in our port-folio,” Admiral Boats’ presi-dent Andrzej Bartosiewicztold WBJ.

To help it realize this plan,the company has gone to thecredit market to get capital.

“To offer our partners awider range of boats, wedecided to invest in the com-pany’s development,” MrBartosiewicz said. “Wegained the capital needed forthis goal from investors,receiving a combined total ofz∏.10 million from a shareissue and two bond issues.The money was spent oninvestment associated withthe expansion of productionfacilities and modernization.”

Choppy waters ahead?With the crisis in the eurozone starting to make aEurope-wide recession lookincreasingly likely, it wouldbe reasonable to expectdemand for yachts and pleas-ure craft in Polish boat-mak-ers’ traditional export mar-kets to fall.

However, Polish boat-pro-ducers’ assured response tothe 2008-2009 crisis, theirability to offer quality prod-ucts at low prices and thepotential for growth in theirhome market means Poland’sboat industry should be ableto keep its head above waterif an economic storm doescome over the horizon.

BBrreennddaann MMeellcckk

Ownership structure

The ownership structures ofcompanies operating in thePolish yacht- and boat-build-ing industry are varied. Ofthe top six producers, Del-phia Yachts, Balt Yacht andÂlepsk are independent, butproduce on behalf ofBrunswick Marine Europe,the US company’s Europeandivision. Galeon and ModelArt/Parker are completelyindependent and produceboats only under their ownbrands. Ostroda Yacht,meanwhile, is owned by Jan-neau of France.

Galeon decided to go it

alone, and has thrived byoffering a high degree offlexibility in its production,allowing clients to tailor theyachts they purchase to theirown personal preferences.

“What makes us excep-tional is that we are able tooffer clients boats producedaccording to their wishes,”said Aleksandra Brzo˝ows-ka, head of marketing atGaleon.

“Our main strength is ahigh level of autonomy andflexibility of production – weare one of the very few pro-ducers which have most pro-

duction departments in oneplace, which makes our pro-duction independent fromsub-contractors. In this way,we are able to satisfy themost sophisticated demandsof clients – this is generallyan expensive process, butworthwhile for us, consider-ing the growth in the demandfor personalized products,”she added.

Testament to this is the sizeof the company’s orders book.“In our production plan, youalready need to reserve adeadline for next year,” MsBrzo˝owska said.●

Fragmentation and consolidation

Only the United Kingdomhas a larger number of com-panies operating in its boat-building sector than Poland.Indeed, Poland has signifi-cantly more companies (920)building yachts and compo-nents for yachts than mar-itime heavyweights likeFrance and Germany (575and 311 companies respec-tively).

However, when revenuesin each of these countriesare taken into account, thepicture looks very different:

in Poland, according toKPMG, the combined rev-enues of companies in theindustry was an estimated€1.39 billion in 2009, whilein Germany, which has onlyaround one-third as manycompanies as Poland, com-bined revenues were €4.94billion.

This evidences the highlyfragmented nature ofPoland’s boat-building indus-try, with most companiesoperating on a much smallerscale than in Western Euro-

pean countries. Nevertheless,there is a feeling within theindustry that consolidation iscoming.

“In my view, in the nextfew years, there will be a peri-od of consolidation in theyacht and boat-building sec-tor in Poland,” Andrzej Bar-tosiewicz, the president ofAdmiral Boats, said.

“Clients are always look-ing for novelties – thisrequires producers to intro-duce new models, and thisrequires capital.” ●

“An incresing number of foreign boatbuilders are deciding to find partnersin Poland”

NOVEMBER 7-13, 2011SSPPEECCIIAALL RREEPPOORRTT:: EEUU DDEEFFEENNSSEE12

Borrowing to

get more

expensive

Companies looking to

borrow money in Poland

could soon see “another

2009,” when credit was

expensive and banks

were reluctant to lend,

Citi Handlowy CEO

S∏awomir Sikora told

Puls Biznesu. According

to Mr Sikora, companies

have to keep in mind

that in the coming

months, banks may be

reluctant to give them

loans, mainly because

of a lack of liquidity in

the market and because

of rising risk. Both

factors will make

borrowing for

companies as well as

the government more

expensive.

Netia Q3

net profit

Warsaw Stock Exchange-

listed Netia, the country’s

second-largest telecoms

operator, posted a net

profit of z∏.24.6 million

for the third quarter of

this year, almost double

the z∏.12.9 million it

made in the previous

quarter. Netia also

revised its 2011

operating profit forecast

upwards, to more than

z∏.95 million from its

earlier estimate of z∏.70

million.

Stocks rally

in October

After dipping to a two-

year low earlier in

October, the Warsaw

Stock Exchange’s blue-

chip index, the WIG20,

positively surprised

investors at the end of

the month. European

politicians’

announcement in late

October of a deal to help

resolve the euro zone’s

debt crisis played a

decisive role in lifting

moods. Between October 3

and the end of the

month, the WSE’s blue-

chip index rose by 13.5

percent to finish at

2,371.57 points, whereas

the main WIG index

gained 12 percent,

reaching 41,160.66

points. ●

www.wbj.pl

EU defense policy

An uphill battlePoland is leading thecharge for robust,unified Europeandefense capabilities,but a minefield ofobstacles still lay in itspath

Since the ratification of theLisbon Treaty in 2007, plansfor the development of a com-mon European Union defensestrategy have been gainingmomentum. Now, at a timewhen the continent’s nationaldefense budgets are feeling thepinch, the rationale for closercooperation on defense withinthe EU is becoming stronger.

Already, some importantprogress has been made onincreasing intra-Europeancooperation, with Poland tak-ing a leading role.

According to Poland’s Min-istry of Defense, the country’slong-term defense policy seesmore value for money in shar-ing military capabilities with itsEU neighbors.

“In our opinion there iscertainly a chance for greatercooperation in defense inEurope. Europe needs it if wewant to develop the requiredmilitary capabilities in times offinancial crisis. The questionof course is how close thiscooperation can be,” DeputyDefense Minister ZbigniewW∏osowicz told WBJ.

Pulling togetherA time when Europeanarmies, navies and air forceswill share their hardwareunder the aegis of a singleEuropean force is still a longway off, but the Polish govern-ment is keen to seek a centralrole for itself in making thoseplans a reality.

Pooling resources wouldhave the obvious advantage ofhelping EU governments findsavings in their defense budg-ets.

“From my perspective,closer cooperation or evenintegration can refer especiallyto some capabilities which areparticularly expensive to bedeveloped autonomously andare especially vital for con-

ducting external operations,such as strategic transport,reconnaissance or logistics,”said Mr W∏osowicz.

Poland is gaining a strongerfoothold in the area of EUdefense decision-making. InOctober, top officials from theEuropean Defence Agency(EDA) and a number of topEuropean defense industryconsultants and firms gatheredin Warsaw for the first Euro-pean Defence Conference.According to Jan Wind, headof Wiser Consultancy, aNetherlands-based defenseand security technology con-sulting firm and co-organizerof the conference, Warsaw waschosen as the host city becausePoland currently holds the EUPresidency and because itsgovernment is taking an activerole in defense cooperation.

“Poland is becoming amore important player [in

European defense policy],”said Mr Wind.

In Brussels, Polish repre-sentatives are pushing forgreater defense cooperation.Member of the European Par-liament Krzysztof Lisek, a Poleand an ardent advocate ofgreater EU defense coopera-tion, told delegates at theEDA conference that “pro-moting the idea of pooling andsharing capabilities is a neces-sity.” He also urged for a“level playing field for defenseproduction” across Europe.

Polish priority At the outset of Poland’s pres-

idency of the EU, Prime Min-ister Donald Tusk’s govern-ment made it clear that Polandwould use the opportunity totry to develop the CommonSecurity and Defence Policy.Looking at the first fourmonths of Poland’s turn ashead of the EU Council,progress has been made in thearea of pooling and sharing.

The EU’s Defence andSecurity Procurement Direc-tive, adopted in August, pro-vides a framework for cross-border defense procurementbetween member states. Assuch, it goes some way towardsfighting against national pro-

tectionism, which has provento be the biggest stumblingblock for establishing jointmilitary production initiativesbetween EU member states.This new directive, introducedduring Poland’s presidency, isa first step towards improvingcompetition and achievinglower prices within the Euro-pean defense industry.

However, achieving greatercollaboration between NATOand the EU in the area ofdefense, another goal of thePolish presidency, has beenless fruitful.

Though the Polish Ministryof Defense’s official stance isthat NATO and the EU facethe same political challenges,the Polish decision not to par-ticipate in NATO’s Libya cam-paign suggests otherwise. It isclear that the priorities of EUdefense ministries, most ofwhich are also members of the

Liam Nolan

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Poland’s military is the sixth largest in Europe, comprising 100,000 full-time personnel

“The time when European armies, naviesand air forces create a single European

force is a long way off”

NOVEMBER 7-13, 2011 SSPPEECCIIAALL RREEPPOORRTT:: EEUU DDEEFFEENNSSEE www.wbj.pl 13

Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners.fogo@pl.millercanfield.com

An EU defense

force?

Legal Eye

Upon adoption of the LisbonTreaty on December 1, 2009,Poland and all other membercountries of the EU cededformal authority to the EUregarding the Union’s for-eign policy and security. Butappearing to transfer controlof foreign policy and defenseto the EU by signing the Lis-bon Treaty, each membercountry also retained theright to conduct its own for-eign policy and defense. For-eign policy and defense, itturns out, is a “shared”power. Despite the wordingof the Lisbon Treaty, the EUdoes not have exclusiveauthority for foreign policyand defense, but rathershares such authority witheach member country. Ineffect, implementation offoreign and defense policy isnow performed on two paral-lel tracks, one pursued by theEU and one pursued by eachof the 27 member states.

Who’s in charge? The EU Council of Ministersis charged with defining theoverall foreign and securityguidelines for the EU,including “matters withdefense implications” (Art26). Actual implementationof the EU’s common securityand defense policy is execut-ed by the High Representa-tive for Foreign Affairs andSecurity Policy, who in turn isaided by a number of EUinstitutions charged with exe-cuting specific areas of suchpolicy, including the Euro-pean External Action Ser-vice, the European DefenceAgency, the Military Com-mittee of the EuropeanUnion, the Political andSecurity Committee and theMilitary Staff of the Euro-pean Union. Member statesare prohibited from takingunilateral action that couldimpact the EU’s ability to actas a cohesive force; however,such limitation does not pre-vent each country from pur-suing its own foreign anddefense interests.

Obligatory vs. voluntaryThe EU does not have astanding army. Rather, theEU relies on the voluntarycontribution of troops bymember states. Currently theEU maintains two rapidresponse military groups of1,500 soldiers each, both ofwhich are ad hoc in natureand dependent on contribu-tions by member states. Nomember state is actually obli-gated to contribute combattroops. A decision to committroops to combat is up toeach member state. More-over, the commitment of EUtroops to a combat situationis still subject to the unani-mous consent of all memberstates. Member states are,however, obligated to con-tribute funding, based upona small percentage of eachcountry’s GDP.

Deployment ofPolish troopsPoland has voluntarily com-mitted soldiers to differentparts of the world as part ofEU military missions, all ofwhich can be characterized asbeing either peace-keeping orpolicing in nature. Under theframework of the EuropeanSecurity and Defence Policy,Poland has committed mili-tary personnel to various EUmilitary missions, includingChad, Kosovo and theRepublic of Georgia.

A work in progressThe EU’s common defensepolicy can best be describedas a work in progress. Mem-ber states are reluctant tocede too much power overdefense policy to the EU,preferring instead to rely on alargely voluntary frameworkto respond on an ad hocbasis. Some member states,including Poland, would liketo further integrate eachcountry’s defense capabilitiesat the EU level, in part tosave money. Other memberstates, such as the UnitedKingdom, are happy to main-tain the status quo. ●

NATO club, are not alwaysaligned with NATO policy.The fact that six EU states arenot affiliated with NATO alsocomplicates greater EU-NATO cooperation.

Even among EU members,it will be hard to convince bigplayers like the UK of the ben-efits of forming a common EUdefense force. In October,Liam Fox, who was then theUK’s defense secretary, saidthat plans for an EU defenseforce that would act separatelyfrom NATO were “nonsense.”With such resistance, achiev-ing closer EU and NATO col-laboration by the end ofPoland’s EU presidency justmight prove too difficult.

Patchwork of alliancesNATO aside, a whole patch-work of internal EU alliancesjar with the concept of forminga harmonized intra-Europeandefensive partnership. LastNovember French PresidentNicholas Sarkozy and UKPrime Minister DavidCameron signed a number offar-reaching agreements, lead-ing to the creation of a jointexpeditionary force, the shar-ing of aircraft carriers andcombined efforts to improvethe safety and effectiveness ofthe nuclear weapons held byboth countries.

Poland, too, is keen tomaintain local alliances, as evi-denced by a recent renewal in

interest in the Weimar Trian-gle, a loose grouping ofPoland, Germany, and Francewhich endeavors to bolstereconomic, cultural and militaryexchanges between the threecountries. In July, the coun-tries signed an agreement inBrussels to establish theWeimar Combat Group, a unitof 1,700 soldiers which isplanned to be ready fordeployment in crisis zonesfrom 2013.

Meanwhile, the EU’s so-called neutral states, Austria,Finland, Ireland, Malta andSweden, have all been reluc-tant to commit to the idea ofcreating a unified EU defenseforce.

Navigating through thispatchwork of agreements andmanaging to convincedoubters will not be an easytask for supporters of an EUdefense force. If anything isclear from the long, drawn-outprocess that led to the creationof the Lisbon Treaty, it’s thatsignificant opposition fromsome EU member states willhave to be surmounted beforethe bloc is able to form anytype of unified defense force.

Bulking upAcross Europe, nationaldefense ministries have hadto endure tough cuts in 2011.On the face of it, Poland’sMinistry of Defense has nothad to endure the same cutsas Germany, France and Bri-tain, whose armed forceshave, this year, felt the hardpinch of current economicrealities. Poland has buckedthis trend, increasing itsdefense expenditures. Withroughly 100,000 full-time per-sonnel, Poland’s military isthe sixth-largest in the EU.

According to figures pub-lished by Poland’s DefenseMinistry, the Polish govern-ment allocated z∏.27.2 billionfor defense expenditures in2011, which amounts to 1.95percent of GDP. That figureclocks in just below NATO’sgoal for its members to spend2 percent of GDP on defense.

Poland is also keen tomodernize its defense forces.According to the DefenseMinistry, z∏.6.63 billion wasset aside for capital invest-ments, which suggests Polandmay be set to buy new arma-ments.

Nevertheless, the Polishgovernment remains prag-matic in its vision for itspotential role at the heart ofany future EU defense struc-ture. “We want to be active.At the same time we are real-istic: We will not be in thelead in this process,” DeputyMinister W∏osowicz said.“Our potential is limited incomparison with countrieslike Germany, France orGreat Britain. Despite this,Poland can be an attractivepartner in some specificareas. We are experienced inthe operational use of someadvanced equipment. Thiscan be used as a basis ofcooperation in terms of train-ing or logistics,” he added.

Poland’s short-term de-fense plans seem wellmapped out: keep defenseexpenditure at an averagerate of 2 percent of GDP,while working hard with theEuropean Defence Agencyto foster greater sharing ofhardware and personnelbetween member states.

In the long term, expectPoland to continue to pushfor greater EU defense coop-eration and stronger capabil-ities. Poland sees it in theEU’s interest to have arobust force that can act inlarge conflicts. But convinc-ing those that disagree is thefirst battle that has to bewon. ●

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Poland’s armed forces have been involved in military action in both Afghanistan and Iraq in recent years

“Former UK defense secretary Liam Foxsaid plans for an EU defense force were

‘nonsense’”

NOVEMBER 7-13, 2011IINNTTEERRVVIIEEWW14 www.wbj.pl

Politics

A question of leadership

Ewa Boniecka: You recentlyco-authored and co-edited thebook “The crisis of leadershipin contemporary politics,”which analyzes political lead-ership in many countries.How do you view the issue ofpolitical leadership in Poland,following the recent parlia-mentary elections?Wawrzyniec Konarski: DonaldTusk, the leader of Civic Plat-form (PO) has demonstratedstrong, but at the same timearrogant leadership qualities,something which clearly distin-guishes him from other politi-cal leaders in Poland. Thestrengthening of his leadershipwas brought about by the factthat PO won a second term inpower and that his personalrole in that victory was a deci-sive one. As a result, he nowhas the ability to play a leadingrole in shaping the country’spolitics.

Yet as a scholar I prefer tolook at the long term and notjust the current situation. It isclear that from the present per-spective Mr Tusk is a decisivepolitical leader, yet whether hewill undertake the task of con-ducting long-awaited reformsdepends on how he perceiveshis role as a leader over alonger period. Political leaderswho want to gain the status ofpolitical statesman have toshow the will and imaginationto undertake crucial, and attimes risky, decisions that candefine a country’s present andfuture development.

If Mr Tusk is able toachieve this then he may gainthe majority of the nation’sgenuine respect, includingthose people who do not cur-rently share his political vision.

What conclusions can theleaders of Poland’s politicalparties draw from the electionoutcome? While PO’s victory was formyself, and some other ana-lysts, predictable, the fact thatthe party gained a larger num-ber of votes than expectedshows that Mr Tusk’s strategyof avoiding any specific ideolo-gy in his message served hisparty well. I predict that MrTusk will now attempt to pushthe weakened parties on theleft and right onto the mar-gins, while at the same timetrying to absorb into PO’sranks some MPs from otherparties, in order to strengthenthe parliamentary majority ofhis future coalition govern-ment.

Such a broad political for-mula suits Donald Tusk,because it gives PO the imageof an open and all-inclusiveparty that can obtain supportfrom other parties withoutbeing in a formal coalitionwith them. Mr Tusk can alsomore easily push aside andeven eliminate his potentialcompetitors inside the party,as the case of [former Speakerof the Sejm and party rival]Grzegorz Schetyna confirms.

So there is no doubt thatthis is Donald Tusk’s era inPolish politics, regardless ofwho will be appointed to hisgovernment and what kind ofcoalition is established. If POonce again forms a coalitionwith the Polish People’s Party(PSL), this party will be in amuch weaker position than inthe previous coalition, duealso to its relatively poor elec-tion results.

The main opposition to POwill continue to come from theconservative-nationalist Lawand Justice (PiS) party. Doyou believe that due to somebitter clashes within thisparty, its leader Jaros∏awKaczyƒski could modify PiS’sprogram and his own person-al style of leadership? No I do not think so, becauseJaros∏aw Kaczyƒski is the epit-ome of PiS and he leads theparty with an iron will. He hasthe ability to gain the admira-tion and trust of those peoplewho are disappointed with theresults of Poland’s transforma-tion and feel the need todefend themselves from liber-al European values. They nodoubt gave Mr Kaczyƒski sig-nificant support in the lastelection. Yet under the leader-ship of Jaros∏aw Kaczyƒski,PiS has lost six consecutiveelections and now someyounger politicians in theparty, led by deputy leaderZbigniew Ziobro, are publiclysaying that the party has tochange. What will come out ofthat inner conflict remains tobe seen.

However, I doubt that MrKaczyƒski will loosen his gripon the party and tolerate pub-lic criticism without harshretaliation. Nevertheless, thebasic dilemma ahead of PiS iswhether under Mr Kaczyƒski’sleadership it will be able toreach new voters. If this doesnot happen, then both PiS andJaros∏aw Kaczyƒski wouldstart to lose any meaningfulposition in Polish politics.

Yet in my view, even aweakened PiS will not disap-pear from Polish politics.But it is also conceivablethat dissidents within PiScould establish anotherright-wing party under a newname, with Mr Ziobro as itsleader.

The outcome of this electionbrought something new to ourpolitical scene, when Palikot’sMovement (RP) entered theSejm after gaining 10 percentof the vote. How significant inyour opinion is this develop-ment for Polish politics?It is important. It shows thatthere are some groups in Pol-ish society who have chosenthe populist approach to poli-cy in order to demonstratetheir dislike of the existingpolitical establishment. Thelatter is seen by such voters asa petrified group of aloofpoliticians who are attemptingto cling on to power.

Yet in my view the supportfor RP was more than justanti-establishment sentiment.Janusz Palikot understoodthat in order to succeed he hadto present new ideas and afresh language of communica-tion with the electorate. Heexploited anti-establishmentfeelings by building a populistparty with radical liberal andleftist messages from the bot-tom up.

He managed to presenthimself as a political outsider –although in reality he is not –who was so disappointed by thepolitical hypocrisy of PO thathe consciously left them. Bycombining a decisive liberalapproach to economics withleftist views on ethical and

social matters, including a cleardivision between church andstate, while also using straight-forward language in approach-ing those problems, Mr Palikotseems to respond to the expec-tations of certain groups withinPolish society, especially youngpeople who are disappointedwith mainstream parties suchas the Democratic LeftAlliance (SLD) and PO.

This is why I think RPshould not be seen as somekind of fad, because in realityJanusz Palikot, with his pop-ulist message, is actually fillinga vacuum that exists in the pol-itics of more traditional par-ties. And that is why I believe,as long as he does not crossover into the establishment,his party will continue to gainsupport from a particular sec-tion of Polish society.

How did the rise of Palikot’sMovement affect the alreadyweak position of SLD, andwhat do you think are thefuture prospects for this par-ticular party?

SLD ignored the activities ofRP during the election andthis was a serious mistake.They also entered into theelection campaign in poorshape, as there was alreadysome dissent within the partytowards leader GrzegorzNapieralski. But the key crisisfor SLD was its inability topresent itself as a real alterna-tive to rightist parties. SLDneglected to develop the linksto social and cultural organiza-tions potentially sympathetictowards the left and did notopen its door to new groups ofpeople. On the contrary, it wasclosing itself inside its ownfrozen party structure. Andwhile SLD was relying on oldslogans, Janusz Palikotshowed that there was supportin Poland for more bold leftistideas.

But because there is now amore widely open space on thepolitical left, I think that SLDhas the potential to recover.The scale of social problems inthe country is rising and thereis also an increased interest inethical matters, so in my opin-ion SLD should develop somekind of cooperation withPalikot’s party to push forwardleftist proposals in parliament.

The most crucial task forSLD is taking steps for its ownrecovery. But I have to say thatso far I have not seen a personwho possesses the politicalvision needed to re-build thecredibility of SLD within theparty’s ranks. Therefore, Ithink the “old guard” activistsshould help in creating a new,relatively young leader of theparty.

What do you see as the mostimportant challenges in termsof domestic policy during thenext parliamentary term?In my view the most crucialaspect for the future of thecountry is investing in scienceeducation on one side, andhealth policy on the other, asthey are currently totally neg-lected, and this is somethingthat is holding our countryback.

I also believe there is aneed to build people’s confi-dence in the state as a symbol.Poles feel that they are notadequately respected and pro-tected by the state and inreturn they do not trust it.Many people think that theyare badly treated in their dailylife – by health and tax sys-tems, and by arrogant adminis-tration organs at all levels.

In Poland we do not havethe kind of national ethos thatexists in many old democraticcountries that is necessary forcreating mutually effective linksbetween citizens and their state.Our state is perceived by peopleas being unfriendly towardsthem. Such a perception callsfor two solutions: structuralchanges in the administrationof the country and a change inmentality among people whoare representing the state.

Without building trustamong various groups of peo-ple and combining it withstrengthening the authority ofthe state and confidence of cit-izens towards the state, it willbe much more difficult toimplement the reforms need-ed for Poland’s real modern-ization.●

Wawrzyniec Konarski, a professor of politicalscience at the Jagiellonian University inKraków, sits down with WBJ to talk aboutPoland’s post-election political scene

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Mr Konarski believes PM Donald Tusk must make difficult decisions to gain the genuine respect of the nation

“I doubt that Mr Kaczyƒski will loosen hisgrip on the party and tolerate publiccriticism without harsh retaliation”

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 • NOVEMBER 7-13, 2011, LI 16/44

Panattoni Park

Gliwice I

expansion

Panatotni Europe has

launched construction on

a second building in its

Panattoni Park Gliwice I

logistics complex in

Upper Silesia. The facility

will be occupied by an

industrial packaging

manufacturer which has

leased 5,000 sqm of

space in the project.

Panattoni Park Gliwice I

is one of Panattoni

Europe’s six investments

in the Upper Silesia

region. The project

comprises two buildings

with a targeted total

space of 22,560 sqm. The

first building in the park

is a 11,165 sqm facility

built for Nagel-Group.

Tesco enters

Bydgoszcz

shopping mallA Tesco supermarket will

open at the Drukarnia

Dom Mody retail center in

Bydgoszcz, replacing a

store that belongs to the

BOMI delicatessen chain.

This will be Tesco’s first

store in the center of the

city, Apsys Poland, the

firm managing the mall,

said in a statement. The

UK retailer will be

located on the mall’s

level-one, neighboring

Pure, a fitness center.

Tesco will open the mall

in the second half of

December this year. The

retailer currently

operates close to 400

stores in Poland, as well

as 27 gas stations. ●

Investment locations

PPoollaanndd sseelllliinngg MMeebbllee EEmmiilliiaa,,iinncclluuddeess pprriimmee WWaarrssaaww ssppoottBut can the siteaccommodate a high-rise officebuilding?

A controlling stake in state-owned furniture companyMeble Emilia is being put upfor sale by the Treasury Min-istry for z∏.172.28 million.The sale will include a net-work of 12 furniture stores,the best-recognized of whichis located on ul. EmiliiPlater, in Warsaw’s down-town.

Built in the 1970s and nes-tled in between the InterCon-tinental Hotel (164 m) andthe Warsaw Financial Center(165 m), the store is in aprime location. Some expertssay the new owner couldreplace the store with a moreprofitable high-rise officebuilding.

However, construction ofan office tower on the site ofthe building would be diffi-cult to undertake because ofthe existence of an eight-storey apartment block thatsits directly behind it. Con-struction of a large officetower would restrict sunlight

for the apartment’s residentsto a level below that which isrequired by law.

The developer of theInterContinental also had todeal with a similar require-ment, eventually choosing toinclude a section that allowslight to pass through.

For an office to be built onthe site of Meble Emilia’s fur-niture store, an investorwould be required to buysome existing residences fac-ing ul. Emilii Plater andreplace them with office orhotel space. Residents, how-ever, do not want to move outand would likely demandexorbitant payments to do so,reported Gazeta Wyborcza.

The Treasury hopes to sellits 85 percent stake in MebleEmilia while allowing eligibleemployees to acquire theremaining 15 percent of thecompany free of charge. Theminimum price-per-share setfor the available shares(221,000) is z∏.779.54.

In addition to its networkof stores, Meble Emilia alsorents out office, retail, adver-tising and warehouse space inthe capital and its surround-

ing area. Last year, according to

the Treasury, Meble Emiliarecorded a loss of z∏.1.6 mil-

lion on sales of z∏.42 million.EEllllaa PPaa∏∏kkaa

Meble Emilia sale . . . . . . . . . . . . .15

GTC’s new Warsaw mall . . . . . . .15

Construction price wars . . . . . . .16

Revitalization in Silesia . . . . . . . .16

Property-related stocks . . . . . . .16

Pabianice mall sold . . . . . . . . . . .17

Hochtief offices in Warsaw . . . .17

Gant’s Amber Park launched . . .18

New Wilno phase . . . . . . . . . . . . .18

In this issue

1716

Silesia will get z∏.243 million

for urban revitalization under

the EU’s JESSICA initiative

Hochtief will reportedly

convert two historical

buildings in Warsaw

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The Emilia store in central Warsaw is nestled in between the InterContinental Hotel

and the Warsaw Financial Center

Retail development

GTC to invest €160 million in new Warsaw shopping center

Warsaw Stock Exchange-listeddeveloper Globe Trade Centre(GTC) has revealed moredetails pertaining to a plannedshopping center which it wantsto build in Warsaw’s Bia∏o∏´kadistrict. The mall will be locat-ed on a 4.9 hectare plot on thecapital’s ul. Âwiatowida. It will

cost approximately €160 mil-lion to develop.

The facility will comprisesome 60,000 sqm of leasablespace. The developer hopesthat due to its convenient loca-tion, the project’s catchmentarea will comprise almost540,000 people and will, apartfrom Bia∏o∏´ka, include theneighboring ̊ oliborz, Bielany,Praga Pó∏noc and Targówekdistricts.

“The planned investment is

a response to the needs of therapidly developing Bia∏o∏´kaand neighboring districtswhere [the supply of] modernretail and service areas is stilllimited,” Piotr Kroenke, gen-eral manager of GTC, said in astatement.

He added that due toongoing transport infrastruc-ture improvements, includingthe construction of Warsaw’sNorthern Bridge, the centerwould successfully serve peo-

ple residing on both sides ofthe Vistula river.

“We are glad that in thecentral part of our district amodern facility with a wideretail and entertainmentoffer will be built. We believethat this initiative will enjoythe support of the district’sauthorities and its inhabi-tants,” Bia∏o∏´ka districtexecutive Jacek Kaznowskisaid in a statement.

Construction on GTC’s

Bia∏o∏´ka mall is expected tostart in the spring of 2013 atthe latest. At the moment,the shopping center project isin the planning stage, withthe Tzur Architects and APAWojciechowski studiospreparing the design. Thesame architectural firms arenow also designing a shop-ping mall that GTC plans tobuild in Warsaw’s Wilanówdistrict.

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The mall will belocated in the centralpart of the capital'sBia∏o∏´ka district

To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

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NOVEMBER 7-13, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl

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

on Nov 3 (z∏. mln)

BUDIMEX 77.50 -3.49 64.00 109.20 -24.76 25,530,098 1,978.58

CELTIC 20.20 0.00 15.55 60.55 N/A 34,068,252 688.18

DOMDEV 30.53 5.24 23.50 50.80 -33.89 24,560,222 749.82

ECHO 3.55 -3.79 3.24 5.55 -30.26 420,000,000 1,491.00

ELBUDOWA 100.20 -4.57 98.00 177.00 -43.99 4,747,608 475.71

ENERGOPLD 2.50 0.00 2.45 4.10 -33.69 70,972,001 177.43

ERBUD 20.00 -2.20 14.70 61.00 -62.26 12,644,169 252.88

GANT 7.90 -4.24 7.30 19.60 -58.27 20,499,953 161.95

GTC 11.30 -4.07 9.33 24.98 -50.76 219,372,990 2,478.91

HBPOLSKA 0.86 -2.27 0.70 3.33 -74.33 210,558,445 181.08

JWCONSTR 7.57 1.20 6.10 18.00 -56.49 54,073,280 409.33

LCCORP 1.13 3.67 0.85 1.69 -31.10 447,558,311 505.74

MARVIPOL 8.99 -0.11 7.22 12.81 -15.19 36,923,400 331.94

MIRBUD 2.45 -3.92 2.25 4.75 -39.05 75,000,000 183.75

MOSTALWAR 24.50 -1.53 19.70 65.45 -62.60 20,000,000 490.00

MOSTALZAB 1.39 -2.80 1.07 3.55 -60.17 149,130,538 207.29

ORCOGROUP 17.60 -5.38 15.70 40.00 -41.43 17,053,866 300.15

PBG 85.00 -1.16 56.05 225.80 -60.92 14,295,000 1,215.08

PLAZACNTR 2.17 0.00 1.80 5.15 -56.16 297,174,515 644.87

POLAQUA 7.80 -0.64 7.50 20.60 -52.73 27,500,100 214.50

POLIMEXMS 1.53 -6.13 1.23 4.30 -62.68 521,154,076 797.37

POLNORD 15.47 9.95 11.03 37.14 -58.19 23,798,439 368.16

RANKPROGR 9.01 -2.07 8.64 13.60 -15.79 37,145,050 334.68

ROBYG 1.20 2.56 1.04 2.13 -40.30 257,390,000 308.87

RONSON 1.04 0.97 0.94 1.66 -36.20 272,360,000 283.25

TRAKCJA 1.69 -3.43 1.39 4.96 -65.51 232,105,480 392.26

ULMA 63.00 1.61 57.00 88.00 -24.96 5,255,632 331.10

UNIBEP 5.75 -3.04 4.47 10.30 -34.29 33,927,184 195.08

WARIMPEX 5.17 -4.08 5.10 10.89 -42.23 54,000,000 279.18

ZUE 7.90 3.95 7.45 15.06 -47.82 22,000,000 173.80

Property-related stocks

Construction sector

Price wars to last for atleast two years: report Confidence amongfirms in Poland'sconstruction sector hasplummeted

The deteriorating situation inPoland’s construction industryand the expected lower num-ber of orders from the publicsector are forcing builders toundercut one another to securecontracts, according to a reportby PMR, a market researchfirm.

The results of the 15th edi-tion of PMR’s twice-annualsurvey of high-level profession-als from the management andoperating divisions of Poland’s200 largest construction firmsshow a significant deteriorationin sentiment.

“PMR Business ConfidenceIndicator (BCI) for the con-struction industry had a valueof -2.4 points in September2011, demonstrating that con-struction companies were sig-nificantly less optimistic as tothe present and future situationin the sector after two years ofrelative stabilization,” PMRsaid.

September’s reading wasthe lowest since March 2009. InMarch of this year, when theprevious survey was released,

the BCI stood at 8.7. Bart∏omiej Sosna, head con-

struction analyst at PMR, wrotethat the “sentiment amongmarket participants wasadversely affected by such fac-tors as continued uncertainty infinancial markets, most projectsfor Euro 2012 reaching comple-tion, required cuts in public sec-tor investment spending andthe lack of clear signs of recov-ery in private investment.”

Sixty-six percent of respon-dents said that underpricingwas the biggest impediment todoing business in the construc-tion sector in Poland. That’s

compared with 57 percent inthe last survey who said thesame.

PMR said that the practiceof reducing prices is set to con-tinue for at least two moreyears. The negative effects ofthis, the report says, will be feltby all participants in the invest-ment process.Thirty-three per-cent of respondents also saidthat the road-construction seg-ment of the construction mar-ket would be the most attractivein the next two years. But that’sdown significantly from the 81percent seen in September2010. DDaavviidd IInngghhaamm

Urban revitalization

Silesia to receive z∏.243 mln for urban revitalizationThe money is beinggiven under the EU’sJESSICA initiative

Silesia voivodship will receivez∏.243 million in funding fromthe European InvestmentBank (EIB) as part of an agree-ment to help revitalize cities inthe region. The agreement,concluded between the Euro-pean Union’s investment bankand Bank Ochrony Ârodowiska(BOÂ) under the EU’sJESSICA (Joint EuropeanSupport for Sustainable Invest-ment in City Areas) initiative,has established a new UrbanDevelopment Fund (UDF).

Over a three-year period,BOÂ will manage and distrib-ute the UDF’s funds on proj-ects that include “revitalizationof urban areas, including post-military and post-industrialareas, regeneration of largeelements of degraded or de-capitalized urban infrastruc-ture (with particular emphasison houses with significant his-toric or architectural value), aswell as improvement of thecondition of housing stock,”the EIB wrote in a statement.

The JESSICA UDF alreadyoperates in Wielkopolska,Zachodniopomorskie and

Pomorskie. The main aim ofthe funds is to lead to an“increase of cities’ competitive-ness through stimulation oftheir economic potential andmultifunctional approach tothe development of degradedareas,” the EIB wrote.

The EIB currently has 10investment projects underappraisal for Poland. Theseinclude a transportation andinfrastructure project in Toruƒand Bydgoszcz, and a project to

upgrade three streets in War-saw. The bank is also consider-ing providing funding for theA4 roadway in the south ofPoland, a credit line for BankOchrony Ârodowiska andfinancing for the second metroline in Warsaw.

In 2010, the bank provided€5.5 billion in financing forPoland. For 2011, that figurehas thus far reached €3.31 bil-lion.

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Mar 2011

Sep 2010

Mar 2010

Sep 2009

Mar 2009

Sep 2008

Mar 2008

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Mar 2007

Aug2006

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Deconstructing confidence

PMR Business Confidence Indicator for Poland’s construction

sector, July 2004-September 2011

Source: PMR

DAILY EXECUTIVE DIGEST

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w . p o l a n d a m . p lG e r m a n v e r s i o n : w w w . p o l e n a m m o r g e n . p l

Poland A.M. gives you the biggest Polish stories of the day.

Have the most valuable news delivered to your inbox each weekday morning.

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Funding from the European Investment Bank will help

revitalize Silesian cities like Katowice

NOVEMBER 7-13, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17

Echo Investment sellsPabianice shopping mallWarsaw Stock Exchange-listeddeveloper Echo Investmenthas sold its Centrum Hand-lowe Echo shopping center inPabianice, ¸ódzkie voivod-ship, to PH 3. The value of thetransaction amounted to morethan €23.8 million.

“This is another transac-tion in the Polish market inwhich both the seller and thebuyer are companies with Pol-ish capital. The demand forretail facilities in regionalcities is very large with the sec-tor being attractive not only toforeign, but also to Polishinvestors,” Adrian Karczewiczfrom Echo Investment, whichwas responsible for the salesdeal, said in a statement.

The Centrum HandloweEcho project is located onPabianice’s ul. Zamkowa.Designed by the PracowniaUniprojekt studio, the schemecomprises 15,000 sqm of retailspace and offers 570 parkingspaces. Tenants include Piotr iPawe∏, Jysk, NOMI, RTVEuro AGD, Reserved, Ross-mann and CCC.

One of the largest realestate investors and develop-ers in Poland, Echo Invest-ment focuses on the residen-tial, shopping center, office

and hotel sectors of the coun-try’s property market. Todate, the company, which isalso present in the Roman-ian, Hungarian and Ukrain-

ian markets, has completedalmost 90 projects in Polandwith a total area of morethan 800,000 sqm.

AAddaamm ZZddrrooddoowwsskkii

HHoocchhttiieeff ttoo ttrraannssffoorrmm ttwwoo WWaarrssaaww bbuuiillddiinnggssDeveloper Hochtief Develop-ment Poland reportedly plansto convert two historic tene-ment buildings in Warsaw’s citycenter into offices.

The buildings are bothowned by Hochtief. One islocated near Plac Stanis∏awaMa∏achowskiego, the other onul. Mazowiecka.

TVN Warszawa reportedthat the developer is financingthe project on Plac Stanis∏awaMa∏achowskiego, which itwants to turn into an officebuilding. The property locatedon ul. Mazowiecka, meanwhile,is earmarked for commercial aswell as office space.

When contacted by LokaleImmobilia, Hochtief Develop-ment Poland representativesdeclined to comment on thereport.

According to TVN Warsza-wa, the company has alreadyreceived permission to startrenovation work on the build-ing on Plac Stanis∏awa Ma∏a-chowskiego. Under the super-vision of a conservator, thedeveloper aims to modernize,but not completely change, theappearance of the structure,the report said. The buildingwill offer a total of 14,000 sqmof space for rent.

The second investment, onul. Mazowiecka, is a smallerproject. Overall it will offer2,500 sqm of leasable space,the channel reported, withoutsaying if the developer hasreceived permission to reno-vate the building.

The first storey of the build-

ing has high ceilings, “whichwould be ideal for a club or arestaurant, which would fitright in with ul. Mazowiecka,”Katarzyna Baranowska, ofHochtief Development Po-land, was quoted by TVNWarszawa as saying.

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The building on Plac Stanis∏awa Ma∏achowskiego will

be turned into office space

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The sale of Pabianice mall was worth €23.8 million

NOVEMBER 7-13, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE18 www.wbj.pl

November 30th 2011 Warsaw, Poland – Marriott HotelOrganized by – EuropaProperty & ceegbc.org

Investment & Occupier Forum

For further information contact: Craig Smith at +48 604 144 769 or craig@europaproperty.com

Anna Kaliszewska at +48 601 382 667 or anna@europaproperty.com

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CommercialReal EstateNEWSThe

Warsaw Stock Exchange-list-ed developer Gant Develop-ment has launched construc-tion on its Amber Park multi-family residential project inKraków, Ma∏opolskie voivod-ship. The scheme will com-prise 388 apartments with atotal of almost 20,000 sqm ofusable space.

The start of constructionfollows Gant’s recent acquisi-tion of more than one hectareof land on Kraków’s ul.Bochenka, where the projectwill be built. The companyfinanced the acquisition with

its own funds, Andrzej Szor-nak, vice president of themanagement board of GantDevelopment, said in a state-ment.

According to Gant Devel-opment president KarolAntkowiak, the company hasobserved unmet demand onthe part of its potentialKraków clients over the pastfew months. He added thatthe developer’s stock of hous-ing in the city has alreadybeen largely depleted.

Gant Development is nowpreparing a number of other

large-scale housing invest-ments in several large Polishcities. “After the capital ofMa∏opolskie voivodship, wewill launch major investmentsin cities including Wroc∏awand Warsaw,” Mr Antkowiaksaid in a statement.

Homes in the AmberPark development, which isscheduled for completion inthe second quarter of 2013,will be sized from 27-91 sqm.The apartments are pricedfrom slightly over z∏.5,000per sqm.

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Gant launches Amber Parkhousing project in Kraków

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The Amber Park development is scheduled to be completed in Q2 2013

Warsaw-based developer DomDevelopment has launchedconstruction and sales ofapartments in a new phase ofits Wilno residential project inthe Polish capital. On offer are132 units scheduled for com-pletion in the second half of2013.

The Wilno development islocated in the Elsnerów neigh-borhood of Warsaw’s Tar-gówek district. Dom Develop-ment is currently building atotal of 463 apartments withinthe investment, of which 214can still be bought.

Units in the latest phase ofthe scheme are sized from

30.3-64.8 sqm and priced fromz∏.6,300-6,780 per sqm. Manyof them are eligible for thegovernment’s Family on itsOwn preferential mortgageprogram for first-time homebuyers.

The developer plans tobuild a new railway stop in thevicinity of Wilno by the end of2013. The facility wouldenable the inhabitants of theestate easy access to a stationof the second subway linewhich is now being built inWarsaw’s Praga Pó∏noc dis-trict.

Listed on the WarsawStock Exchange since 2006,

Dom Development is cur-rently involved in a total of 20residential investments inWarsaw and Wroc∏aw includ-ing different phases of theOsiedle Saska, Adria, Kla-syków, Derby and MiasteczkoRegaty schemes in the Polishcapital.

In the third quarter of2011, the developer sold 454apartments, which was over42 percent more than in thesame period of last year. Thecompany’s revenues andprofit in Q3 amounted toz∏.201.5 million and z∏.36.6million, respectively.

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Dom Development expandsWilno project in Warsaw

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4.31

90

4.3

433

4

.414

6

4.

3809

4.3

464

28.1

0

31.1

0

02.1

1

03.1

1

04.1

1

4

5

28.1

0

31.1

0

02.1

1

03.1

1

04.1

1

PLN-USD

3.04

61

3

.102

4

3.2

093

3

.180

0

3.1

385

3.0

3.5

28.1

0

31.1

0

02.1

1

03.1

1

04.1

1

PLN-GBP

4.90

85

4.9

683

5

.135

3

5

.072

2

5.

0259

4

5

6

28.1

0

31.1

0

02.1

1

03.1

1

04.1

1

PLN-CHF

3.53

19

3.5

612

3.6

295

3.60

82

3.5

574

3.5

4.0

28.1

0

31.1

0

02.1

1

03.1

1

04.1

1

PLN-RUB

0.10

24

0.10

29

0

.104

7

0.1

035

0.10

29

0.10

0.12

28.1

0

31.1

0

02.1

1

03.1

1

04.1

1

PLN-100JPY

4

.016

0

3.

9785

4.11

25

4

.075

8

4

.023

0

3

4

5

currency rates

The drama continues

Currency report

Last week’s drama in Greecebrought an increased level ofvolatility to financial markets.And those who expected along-lasting rally as a result ofEuropean leaders’ agree-ment on anti-crisis measureslast month are probablymuch more skeptical now.Speculation about the col-lapse of the Greek govern-ment and the possibility ofthe implementation ofreforms in Greece have con-tinued to affect frustratedmarkets. What’s more, PMIs(Purchasing ManagersIndices) in Europe and theISM report in the US leaveno doubt that economies allaround the world are slow-ing. This is the reason whythe EUR/USD is now muchlower than a week ago, down2.8 percent to $1.38.

These factors have alsohad an impact on the Polish

currency market. However,in comparison to otheremerging market currencies,the z∏oty seems to be relative-ly strong, at z∏.4.33 againstthe euro, z∏.3.13 against thedollar and z∏.3.55 against theSwiss franc. The strength ofthe Polish currency is theresult of healthy economicfundamentals, with Poland’sGDP growth looking likely toexceed 4 percent this year.Moreover, Poland’s PMI fig-ures, which were better thanthe market had expected,suggest that the near futurewill also be positive for Polishcompanies.

However, those funda-mentals will only really beginto seriously matter to curren-cy markets if the Greek crisisand other issues related tothe PIIGS countries start todisappear from the head-lines. ●

Pawe∏ Kordala, X-Trade BrokersDom Maklerski SA

SO

UR

CE

: N

BP

Major indices

Top 5 Closing % change (week) 52-week high 52-week lowWIKANA 0.63 687.50 0.77 0.0606MAGNA 0.45 66.67 0.88 0.19PRONOX 0.32 52.38 1.76 0.14KREZUS 6.43 23.89 6.47 1.86CHEMOS 0.29 20.83 0.67 0.18

WIG 41,313.92 (November 3 close)Change for the week: -0.95% 52-week high: 50,371.74

Change year to November 3: -13.30% 52-week low: 36,549.47

Top 5 Closing % change (week) 52-week high 52-week lowPEKAO 153.00 2.68 197.20 115.10PKNORLEN 41.39 2.20 58.85 30.33PZU 343.00 1.57 398.60 283.10ASSECOPOL 49.40 0.96 56.60 34.50PGNIG 3.95 -0.75 4.65 3.25

Bottom 5 Closing % change (week) 52-week high 52-week lowCEDC 15.35 -23.21 83.50 14.63TVN 12.30 -15.75 18.53 10.53MIRACULUM 0.43 -15.69 1.18 0.34AGROWILL 0.78 -15.22 1.22 0.62ASBIS 1.09 -14.84 4.25 1.03

Bottom 5 Closing % change (week) 52-week high 52-week lowTVN 12.30 -15.75 18.53 10.53GETIN 8.15 -6.86 15.29 6.22POLIMEXMS 1.53 -6.13 4.36 1.19GTC 11.30 -4.07 25.19 9.12TAURONPE 5.40 -3.40 6.92 4.65

WIG20 2,397.35 (November 3 close)

Change for the week: -0.72% 52-week high: 2,932.62

Change year to November 3: -12.97% 52-week low: 2,089.84

mWIG40 2,278.65 (November 3 close)

Change for the week: -2.09% 52-week high: 2,987.72

Change year to November 3: -18.84% 52-week low: 2,086.64

sWIG80 9,019.91 (November 3 close)

Change for the week: -1.77% 52-week high: 12,932.00

Change year to November 3: -26.36% 52-week low: 8,483.22

NewConnect 42.81 (November 3 close)

Change for the week: 0.12% 52-week high: 64.04

Change year to November 3: -32.49% 52-week low: 42.02

WIG-Banki 5,984.35 (November 3 close)

Change for the week: -1.25% 52-week high: 7,387.49

Change year to November 3: -14.04% 52-week low: 4,944.19

DJIA12,004.47 (Nov 3 close)

-1.67% (for the week)

CHANGE: 3.69%

(year to Nov 3)

52-week high: 12,928.50

52-week low: 10,362.30

NASDAQ2,697.97 (Nov 3 close)

-1.48% (for the week)

CHANGE: 0.80%

(year to Nov 3)

52-week high: 2,887.75

52-week low: 2,298.89

S&P5001,261.15 (Nov 3 close)

-1.82% (for the week)

CHANGE: 0.28%

(year to Nov 3)

52-week high: 1,370.58

52-week low: 1.074.77

FTSE1005,545.60 (Nov 3 close)

-2.94% (for the week)

CHANGE: -6.01%

(year to Nov 3)

52-week high: 6,105.80

52-week low: 4,791.00

DAX6,133.18 (Nov 3 close)

-3.23% (for the week)

CHANGE: -12.05%

(year to Nov 3)

52-week high: 7,600.41

52-week low: 4,965.80

NIKKEI2258,640.42 (Nov 3 close)

-3.21% (for the week)

CHANGE: -16.54%

(year to Nov 3)

52-week high: 10,891.60

52-week low: 8,227.63

world stock indices

06.1

0

07.1

0

10.1

0

11.1

0

12.1

0

13.1

0

14.1

0

17.1

0

18.1

0

19.1

0

20.1

0

21.1

0

24.1

0

25.1

0

26.1

0

27.1

0

28.1

0

31.1

0

02.1

1

03.1

137,000

38,000

39,000

40,000

41,000

42,00006

.10

07.1

0

10.1

0

11.1

0

12.1

0

13.1

0

14.1

0

17.1

0

18.1

0

19.1

0

20.1

0

21.1

0

24.1

0

25.1

0

26.1

0

27.1

0

28.1

0

31.1

0

02.1

1

03.1

12,100

2,180

2,260

2,340

2,420

2,500

06.1

0

07.1

0

10.1

0

11.1

0

12.1

0

13.1

0

14.1

0

17.1

0

18.1

0

19.1

0

20.1

0

21.1

0

24.1

0

25.1

0

26.1

0

27.1

0

28.1

0

31.1

0

02.1

1

03.1

12,100

2,160

2,220

2,280

2,340

2,400

06.1

0

07.1

0

10.1

0

11.1

0

12.1

0

13.1

0

14.1

0

17.1

0

18.1

0

19.1

0

20.1

0

21.1

0

24.1

0

25.1

0

26.1

0

27.1

0

28.1

0

31.1

0

02.1

1

03.1

1

8,600

8,720

8,840

8,960

9,080

9,200

06.1

0

07.1

0

10.1

0

11.1

0

12.1

0

13.1

0

14.1

0

17.1

0

18.1

0

19.1

0

20.1

0

21.1

0

24.1

0

25.1

0

26.1

0

27.1

0

28.1

0

31.1

0

02.1

1

03.1

1

41.0

41.6

42.2

42.8

43.4

44.0

06.1

0

07.1

0

10.1

0

11.1

0

12.1

0

13.1

0

14.1

0

17.1

0

18.1

0

19.1

0

20.1

0

21.1

0

24.1

0

25.1

0

26.1

0

27.1

0

28.1

0

31.1

0

02.1

1

03.1

15,400

5,540

5,680

5,820

5,960

6,100

Other indices

Greece inthe spotlight

Stocks report

The first week of Novemberbrought with it renewedfears concerning the situa-tion in Greece. After amonth of strong gains, mar-kets dipped early last week.Frightening investors earlyon in the week were twoevents. First, on MondayOctober 31, investors wit-nessed futures broker MFGlobal Holdings file forbankruptcy, after big bets onEuropean sovereign debtwent wrong. A day later,investors were stunned as theGreek prime ministerannounced plans to hold areferendum on Greece’seuro-zone bailout package.Throughout Europe indicesplunged, with financials hithardest.

Though markets wereclosed in Poland on Novem-ber 1, both the WIG andWIG20 lost about two and aquarter percent each in theweek’s first two days of trad-

ing. Hit hardest were sharesof TVN, with the televisionnetwork shedding over 15percent after news of a com-plex deal with Canal+ divid-ed investor opinion.

On Thursday, November3, markets experienced arelief rally, with global stocksand crude oil rising on hopesthat Greece would abandonplans to hold a referendum.Also pushing stocks upwardswas a surprise EuropeanCentral Bank interest-ratecut as well as uplifting com-ments from US FederalReserve chairman Ben Ber-nanke, who pledged to domore if US economic condi-tions worsened.

Friday saw marketsdecrease, largely on the backof slightly weaker-than-expected non-farm payrolldata from the US. The WIGclosed lower by 0.98 percent,while the WIG20 lost 1.44percent. ●

Andrew Nawrocki, WBJ market analyst

NOVEMBER 7-13, 2011TTHHEE LLIISSTT20 www.wbj.pl

Construction & Real Estate

Architectural FirmsRanked by revenue from architectural design in 2010 www.bookoflists.pl

Rank

Company nameAddressTel./FaxE-mailWeb page

Revenue fromarchitectural

design (z∏. mln)

Total revenue(z∏. mln)

Office /Retail /

Residential

Industrial /Public /

Historicalbuildings

Land

acq

uisi

tion

/Pr

e-in

vest

men

t /Co

st e

stim

ate

/Fe

asib

ility

stu

dies

Inve

stor

sub

situ

tion

/In

vest

men

t sup

ervi

sion

/Do

cum

ent p

repa

ratio

n fo

r ten

ders

/M

anag

emen

t of t

ende

rs

Notable recently completedprojects Recent prizes

Num

ber o

f arc

hite

cts

/Li

cens

ed a

rchi

tect

s

Full-

time

empl

oyee

s /

Year

foun

ded

Top local executive /

Title

1

Kury∏owicz & Associates Sp. z o.o.ul. Berezyƒska 25, 03-908 Warsaw22 616-3798/22 616-3799apaka@apaka.com.plwww.apaka.com.pl

WND26.138.949.0

WND26.138.949.0

✓✓✓

✓✓✓

✓✓✓✓

WNDWND

✓✓

Eko Park Violono (Warsaw); Nie jesteÊ sam”TVN foundation’s Cancer Prevention Center

(Warsaw); Harmony Office Center II(Warsaw); Apartamenty Piaskowa

(Wroc∏aw); Prosta Tower (Warsaw)”

Maciej Nowicki’s Award for Prosta Tower; 1st prizein investors contest for Park Plaza in Szczecin

concept

6525

WND1982

Ewa Kury∏owicz;Piotr Kuczyƒski

WND

2

PM Group Polska Sp. z o.o.ul. Kleciƒska 125, 54-424 Wroc∏aw71 354-8900/71 354-8901wroclaw@pmgroup-global.comwww.pmgroup-global.com

11.023.019.022.0

20.042.035.046.0

✓✓✓

✓✓✓

✓✓✓✓

✓✓✓✓

L’Oreal (Kanie); 3M (Wroc∏aw); PittsburghGlass Works (Komorniki); Weyerhaeuser

(Gdaƒsk)

Best Workpace in Ireland (2011); SustainableDesign and Research Award (2011);

Project/Construction Management Firm of the Year(2010); Visionary School of Design for DevereuxArchitects (2011); Construction Industry Safety

Excellence (2011)

3020

2331997

Con MurphyManaging Director

3

Prochem SAul. Powàzkowska 44C, 01-797 Warsaw22 326-0100/22 326-0101prochem@prochem.com.plwww.prochem.com.pl

WND22.232.436.0

WND127.0183.0380.0

✓✓-

✓✓-

-✓✓✓

✓✓✓✓

Ethanol production plant for Bioagra(GoÊwinowice); production plant for TBAI(Wykroty); extension and modernization of

“Czajka” Wastewater Treatment Plant(Warsaw); terephthalic acid installation for

PKN Orlen (W∏oc∏awek)”

Leader of Polish Business (2007, 2008, 2009) -contest organized by Business Centre Club;Modernization of the Year (2008) - contest

organized by Targi Pomorskie; Construction of theYear (2008, 2009) - contest oraganized by PZITB;

Engineering Project of the Year (2008, 2010) -contest organized by IPB

157

2251947

Jaros∏aw St´pniewskiPresident

4

Hermanowicz Rewski Architekci Sp.j.ul. Klimczaka 8/65, 02-797 Warsaw22 673-8556/22 673-8566sekretariat@hermanowicz.plwww.hermanowicz.pl

WND21.017.011.5

WND21.017.011.5

✓✓✓

✓✓✓

✓✓✓✓

--✓-

Pol-Aqua headquarters (Warsaw);KLASYKÓW residential area - 1st phase(Warsaw); SASKA residential area - 1st

phase (Warsaw)

1st prize for District Court in Siedlce; 2nd prize forSchindler Polska headquarters; 2nd prize for project

of Sinfonia Varsovia’s concert hall

5516

301990

Wojciech HermanowiczPartner

5

Jems Architekci Sp. z o.o.ul. Gagarina 28A, 00-754 Warsaw22 559-2800/22 559-2803jems@jems.plwww.jems.pl

7.419.124.219.5

7.419.124.219.5

✓✓✓

-✓-

✓-✓✓

-✓✓✓

Cristal Park office building (Warsaw); TRIOresidential building (Warsaw); Avantgarden

residential complex (Warsaw)

1st prize in contest organized by SARP forInternational Convention Center (2008); 1st prize forNational Sports Center (2008); 1st prize in contest

organized by SARP for Hotel 5* Rennaissance(2009); 1st prize for Municipal Stadium in ¸ódê(2009); 1st prize for Chopin Airport City (2010)

448

531989

Wojciech ZychPresident

6

APA Wojciechowski Sp. z o.o.ul. Domeyki 5, 04-146 Warsaw22 610-0085/22 610-6278apa@apa.com.plwww.apa.com.pl

4.716.014.624.1

WND16.014.624.1

✓✓✓

✓✓✓

-✓✓✓

--✓✓

Francuska Office Centre (Katowice); GaleriaS∏oneczna (Radom); White Square Office

Centre (Moscow); InkubatorPrzedsi´biorczoÊci (Gdaƒsk); Equator II/Zenith

(Warsaw)

Award for the best class-A office building 2010 forWhite Square Office Centre; CEE Real Estate Award

Architect of the Year (2009)

5817

621991

Szymon Wojciechowski;Micha∏ Sadowski, WitoldDudek, Marcin Grzelewski

President; Vice-Presidents

7

SUD Architekt Polska Sp. z o.o.ul. Foksal 10, 00-366 Warsaw22 332-4832/22 332-4831nroques@sudgroupe.plwww.sudarchitectes.com

2.014.26.5

WND

2.014.26.5

WND

✓✓✓

-✓✓

-✓-✓

--✓-

WND2nd prize for educational eco-energy innovation

center “Dom Planety” concept (2010)”165

111996

Nicolas Roques; Jocelyn Fillard

Directors

8

Medusa Group Sp. z o.o., Sp.k.ul. Józefczaka 35, 41-902 Bytom32 720-3077/32 720-3075office@medusagroup.plwww.medusagroup.pl

WND8.48.48.4

WND8.58.58.5

✓✓✓

✓✓✓

--✓-

✓✓✓-

ING Bank headquarters; Roedl & Partneroffice building (Gliwice)

Platynowe Wiert∏o for Roedl & Partner officebuilding (2010); 3rd prize in contest organized bySARP for Maritime Museum in Szczecin (2011);

award in contest organized by SARP for Radio andTelevision Faculty in Katowice (2011);

Superjednostka for concept of adaptation of the oldgranary in Gliwice into lofts (2010)

212

191998

Przemys∏aw ¸ukasik; ¸ukasz Zaga∏a

Main Architects

9

PRC Architekci Sp. z o.o.Al. Ujazdowskie 6A, 00-461 Warsaw22 622-2828/22 622-2929architekci@prc.com.plwww.prc.com.pl

5.07.97.65.2

5.98.88.25.2

✓✓✓

✓✓✓

----

--✓-

Best Western Premiere (Katowice); RestauraGórskiego (Warsaw); Park Biznesu Teofilów(¸ódê); Restaura Maraton Gardens (Poznaƒ)

1st prize for the concept of architectural buildingmodernization of Pa∏acyk Przeêdzieckich for Ministryof Foreign Affairs in Warsaw; 1st prize for AtriumSouth; nomination for Central and Eastern EuropeQuality Awards for IBB Andersia Hotel in Poznaƒ(2007); Budowa Roku for IBB Andersia Hotel in

Poznaƒ (2007); Torchbearer 2010; Top Hotel Sport2010

3114

WND1998

Andrzej MichalikPresident

10

Dedeco Sp. z o.o.ul. Âw. Ducha 5A/15, 70-205 Szczecin91 484-1340/91 484-0982office@dedeco.plwww.dedeco.pl

3.37.63.28.9

3.37.73.28.9

✓✓✓

✓✓✓

-✓✓✓

-✓✓✓

Osiedle Pionierów (Szczecin)

Award for District Court in Siedlce concept (2011);award for TS Wis∏a Hall in Kraków concept (2011);

2nd prize for UDT headquarters in Bydgoszczconcept (2010); 2nd prize for District Court in

Grajewo concept (2010); 1st prize for AcademicSport and Education Centre in ¸ódê (2010)

2711

251994

Piotr HofmanPresident

11

Broadway Malyan Polska Architekci iProjektanci Sp. z o.o.Rondo ONZ 1, 00-124 Warsaw22 544-9030/22 544-9039warsaw@broadwaymalyan.comwww.broadwaymalyan.com

WND6.9

WND13.3

WND6.9

WND13.3

✓✓✓

✓✓-

✓✓-✓

-✓✓✓

WND

Best Small Shopping Center Award at ShoppingCenter Awards in Warsaw (2009); 2nd prize forretail and residential complex on ul. Grójecka/ul.Banacha (2009); award for Pediatric Hospital for

Medical University of Warsaw (2010)

183

202002

Melvin DavisBoard Member

11

FS&P Arcus Sp. z o.o.ul. Gen. Abrahama 12/11, 03-982 Warsaw22 671-9525/22 671-1236fsparcus@fsparcus.com.plwww.fsparcus.com.pl

3.16.97.18.1

3.36.97.18.1

✓✓✓

✓✓✓

✓✓✓✓

✓✓✓✓

Przy Promenadzie residential area (Warsaw);residential building on ul. Belottiego

(Warsaw); Wilga 7 (Warsaw)WND

2611

301988

Mariusz Âcis∏oPresident

13

Epstein Sp. z o.o.ul. Wo∏oska 9A, 02-583 Warsaw22 525-0300/22 525-0301epstein@epstein.com.plwww.epstein.com.pl

4.35.46.813.4

7.19.111.422.3

✓✓✓

✓✓✓

✓✓✓✓

✓✓✓✓

Konstruktorska Business Center (Warsaw);RTW (Warsaw)

WND2919

701971

Janusz T. LichockiPresident

14

S.A.M.I. Architekci MariuszLewandowski i Wspólnicy Sp. z o.o.ul. Dereniowa 2/9, 02-679 Warsaw22 826-1015/22 826-1327biuro@samiarchitekci.comwww.samiarchitekci.com

3.43.77.010.6

3.43.87.110.9

✓✓✓

✓✓✓

✓✓✓✓

✓✓✓✓

Multifamily apartment buildings on ul.Dereniowa (Warsaw)

Barbara and Stanis∏aw Brukalscy award for theconcept of extending of buiding on ul. Su∏kowskiego

in Warsaw (2011); SARP award for SupremeAdministrative Court of Poland (2009); 1st prize foran office buiding complex on ul. Wilanowska 372 inWarsaw (2008); 2nd prize for Special Art Zone in¸ódê concept (2008); Platynowe Wiert∏o (2007)

237

161999

Maciej MajewskiPresident

15

Artur Jasiƒski i Wspólnicy BiuroArchitektoniczne Sp. z o.o.ul. S∏onecznikowa 8A/2, 30-213 Kraków12 661-8120/12 661-2098aj@ajbiuro.plwww.ajbiuro.pl

WND2.82.44.8

WND2.82.44.9

✓✓✓

-✓-

-✓✓✓

--✓-

District Court (Âwidnik); sports arena(Wieliczka); residential and retail building

(Kraków); B∏onia residential area (Nowy Sàcz)

1st prize for Multimedial Town in Technology Park inNowy Sàcz (2009); 2nd prize for Centrum Obs∏ugiInwestora in Kraków (2008); 2nd prize for sportsarena Cracovia in Kraków (2008); 3rd prize for

Administrative Center in Rzeszów (2009); 3rd prizefor Silesian Museum in Katowice (2007)

105

WND2002

Artur JasiƒskiDirector

16

Przedsi´biorstwo Us∏ug Consultingowych Wadeco Sp. z o.o.ul. Madaliƒskiego 20, 02-513 Warsaw22 856-5034/22 856-5043wadeco@wadeco.plwww.wadeco.pl

0.92.12.22.5

1.12.52.63.2

✓✓✓

✓✓✓

✓✓✓✓

✓✓

WND✓

Zen Garden residential complex (Szeligi);residential complex on ul. Dalanowska 24B

(Warsaw)WND

103

WND1996

Stanis∏aw ChrzanowskiPresident

1st half of 2011 / 2010 / 2009 / 2008

Speciality Services

NOVEMBER 7-13, 2011 TTHHEE LLIISSTT www.wbj.pl 21

Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was donein August 2011. Number of employees and ownership structure are as of July 2011. All informa-tion pertains to the companies’ activities in Poland. Companies not responding to our survey arenot listed.

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

Rank

Company nameAddressTel./FaxE-mailWeb page

Revenue fromarchitectural

design (z∏. mln)

Total revenue(z∏. mln)

Office /Retail /

Residential

Industrial /Public /

Historicalbuildings

Land

acq

uisi

tion

/Pr

e-in

vest

men

t /Co

st e

stim

ate

/Fe

asib

ility

stu

dies

Inve

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Notable recently completedprojects Recent prizes

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Title

17

KIPP Projekt Sp. z o.o.ul. Rakowiecka 36, 02-532 Warsaw22 565-4000/22 565-4001kipp@kipp.com.plwww.kipp.com.pl

0.62.02.82.9

0.62.13.03.1

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Ergo Arena multifunction sports andentertainment arena (Sopot/Gdaƒsk);

Aquamarina (Mi´dzyzdroje); swimming pool(Cz∏uchów)

1st prize for “Centrum Pieniàdza NBP” concept(2011); Budowa Roku for Aquamarina and for Ergo-

Arena (2010)

103

81988

Adrian GóreckiPresident

18

Studio Architektoniczne Ozone, Czaus,Bernardi Sp. z o.o.ul. Armii Krajowej 6C, 50-540 Wroc∏aw71 364-7500/71 336-0231ozone@ozone.com.plwww.ozone.com.pl

WND1.92.96.1

WND1.92.96.1

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Technical University of Opole, Department ofCivi Engineering (Opole); CH Twierdza

(K∏odzko); Communication Junction StadiumEuro 2012 (Wroc∏aw); Platinum Palace Hotel

(Wroc∏aw); private villa (Wis∏a)

2nd prize in World Architecture Triennale in Nara(1995)

138

191999

Grzegorz Czaus; Gianmara Bernardi; Ewa Krzymiƒska; Marek Âwieboda;

Ewa Kawulok-MatkowskaWND

19

KAPS - Architekci Korneluk ParysekS∏owik Sp. z o.o.Al. Wojska Polskiego 41/47, 01-503 Warsaw22 896-9360/22 896-9361pracownia@kaps-architekci.plwww.kaps-architekci.pl

3.11.32.37.9

3.11.32.37.9

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Park Project Group (Warsaw); residentialbuiding on ul. Braci Za∏uskich (Warsaw);Police headquarters (Lublin); Olimpic Park

Hotel (Ustronie)

1st prize in contest for revitalization of Poland’sNovember Uprising Mausoleum in Ostro∏´ka; award

for design of Museum of Polish Army in Warsaw

143

112002

Maciej ParysekPresident

20

3dprojekt Jakub Krzysztofikul. ¸agiewnicka 121, 91-863 ¸ódê501-499-773/42 639-5169 ext.25jk.3dprojekt@gmail.comwww.3dprojekt.com.pl

WND1.11.50.9

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Educational and sports complex (Gomulin);Dormitory no. 2 for Medical University of¸ódê (¸ódê); school and boarding school

(¸ódê); retail and residential building on ul.Kaliska (¸ódê); adaptive reuse of historicbank building for ¸ódê Voivodship sejmik

headquarters (¸ódê)

The Best residential Building Award for “S∏oneczneTarasy” in ¸ódê (2010)

94

82000

Jakub KrzysztofikOwner; CEO

21

vsf-creative Sp. z o.o.ul. Nowogrodzka 50/515, 00-695 Warsaw605-966-350vsf-creative@vsf-creative.comwww.vsf-creative.com

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WND WND52

42010

Paul AyrePresident

22

Jasiƒski Kruszewski Architekci Sp. z o.o.ul. Rakowiecka 45/11, 02-528 Warsaw22 646-0750 /22 646-0713architektura@jk-architekci.plwww.jk-architekci.pl

WND0.91.11.0

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KWINTET multifamily residential complex(Warsaw)

WND72

72004

Romuald Kruszewski;Mariusz Jasiƒski

President; Vice-President

23

Abart-Project Sp.c.ul. Kuênicza 59/60, 50-138 Wroc∏aw71 342-9446/71 342-9445ab@abart-project.com.plwww.abart-project.com.pl

0.50.90.90.8

0.50.90.90.8

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PoÊwi´cka residential area (Wroc∏aw); hot-dip galvanizing plant (Rawa Mazowiecka);

multifamily buildings complexes on ul.Chopina and on ul. ˚wirki i Wigury(Wroc∏aw); CHRIS Hotel (Radków)

WND42

21992

Andrzej BartnikPresident

24

EM Jednacz Architekciul. Flory 5/10, 00-586 Warsaw22 646-7227/22 646-7277biuro@jednacz.com.plwww.jednacz.com.pl

WND0.7

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Wacker Neuson headquarters (O˝arówMazowiecki)

2nd prize for concept of Polish History Museum(2009/2010)

52

91992

Miros∏aw JednaczCo-owner

25

Atelier 2 Architekci Sp. z o.o.ul. Poznaƒska 17, 00-680 Warsaw22 622-4323/22 622-4323architekci@atelier2.plwww.atelier2.pl

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Crown Tower (Warsaw); PolonezaInvestment (Warsaw); building for archives

(Izabelin); residential building on ul.Kociszewskich (Warsaw)

Award in contest for funeral chapel with crematoryin Koszalin municipal cementery (2010-2011);

honorable mention in contest for residential complexon ul. RzemieÊlnicza/ul. Szafrana in Kraków (2011)

72

81993

Konrad Kucza-KuczyƒskiCo-owner

26

PiÊniak i PiÊniak Architekci Sp.c.Autorska Pracownia Projektowaul. Storczyków 26A, 05-807 Podkowa LeÊna22 758-9232/22 758-9032archpisniak@tlen.plwww.archipisniak.waw.pl

0.10.10.1

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Residential buildings (Mi´dzylesie; Warsaw);office building (Grodzisk Mazowiecki)

WND21

21991

Zbigniew PiÊniakChief Designer

NR

Artinex, osoba fizycznaul. Turecka 4/20A, 00-745 Warsaw22 851-0945/22 851-0944artinex@webmedia.plwww.artinex.pl

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Mokotów Nova (Warsaw); electronmicroscopy laboratories (Kraków; Warsaw);

Willa Krasicki (Warsaw)1st prize for Science and Technology Park in Olsztyn

92

121990

Krzysztof WolskiDirector

NR

Atelier PS, Miros∏aw Polak, MarekSkwara Sp.c.ul. Jordana 10/8, 40-056 Katowice32 251-4778/032 251-8218atelierps@home.plwww.atelierps.home.pl

WNDWNDWNDWND

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BMW/Mini car showroom (Katowice);extension of Wy˝sza Szko∏a Techniczna

(Katowice); Garden Plaza (Zàbki)WND

106

61991

Miros∏aw Polak; Marek Skwara

Co-owners

NR

Autorska Pracownia Architektury Villanette, Dagmara Ob∏uskaAl. Krakowska 61, 02-183 Warsaw601-939-355biuro@villanette.plwww.villanette.pl

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WND Wiktoria - Mazowiecki Znak JakoÊci (2010)21

22005

Dagmara Ob∏uskaOwner

NR

Plus-Art. Biuro Architektoniczne Sp.c.ul. Âwitezianki 16, 91-496 ¸ódê42 640-6116/42 640-6208pa@plusart.plwww.plusart.pl

WNDWND

1.2WND

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CKF (ZamoÊç); DolnoÊlàskie CentrumFilmowe OdraFilm (Wroc∏aw)

Award from Lubelskie’s Governor for CFK in ZamoÊç72

51990

El˝bieta Spie˝; Rados∏aw Kurzyp

Co-owners

NR

Rolfe Judd Ltd Sp. z o.o. oddzia∏ wPolsceul. Podchorà˝ych 1, 40-043 Katowice32 251-0374michala@rolfe-judd.co.ukwww.rolfe-judd.pl

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Fastest Growing Practice (2011); Evening StandardNew Homes Awards - Best New Apartment

Affordable Homes Sector (2010); Harington PlanningAwards (2009); Best New Affordable Housing

Scheme of the Year Award (2009); Housing DesignAwards (2009); the Hotel Design Award of the Year

for Refurbished Bedrooms (2009)

195

192006

Ian MclntoshDirector

NR

Tebodin Poland Sp. z o.o.ul. TaÊmowa 7, 02-677 Warsaw22 334-4111/22 334-4112info@tebodin.plwww.tebodin.pl

WNDWND18.924.2

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Malta Office Park (Poznaƒ); Park HandlowyFutura (Modlniczka); A4 highway Rzeszów -

Jaros∏aw section; KGHM Polska Miedê(Polkowice; G∏ogów); Rafineria LOTOS

(Gdaƒsk)

Gazela Biznesu (2009)95

2752006

Petr BilekPresident

NR

WS Atkins-Polska Sp. z o.o. ul. Bonifraterska 17, 00-203 Warsaw22 246-0700/22 246-0701atkins@atkinsglobal.plwww.atkinsglobal.pl

WNDWND

1.32.7

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Modernization of Glinojeck Sugar Factory(Glinojeck); warehouse of high storage for

Glaxo Wellcome (Poznaƒ); conceptualdesigns of motorways service areas on A2and A4 morotways (for Shell Polska); office

and production buildings for Wall BDAPrintery (Bydgoszcz)

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WND1993

Stephen NovisManaging Director

1st half of 2011 / 2010 / 2009 / 2008

Speciality Services

NOVEMBER 7-13, 2011LLIIFFEESSTTYYLLEE22 www.wbj.pl

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 (Praga)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 (Arsena∏) 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

Jean Michel JarreNovember 14, Torwar¸azienkowska 6A,Warsaw

French electronic music pioneerJean-Michel Jarre will bring hisunique talent to the Polish citiesof Bydgoszcz, Katowice andWarsaw this November. MrJarre, who has described him-

self as “a chic type, a rough type,an odd type – but never astereotype,” has been a perma-nent fixture on the electronicscene since his breakthroughalbum, “Oxygène,” which sold12 million copies in 1976.He has since gone on to sell 80million albums worldwide, whilealso breaking numerous records

for putting on some of thelargest-ever concerts, includinga show in Moscow for 3.5 mil-lion people. Tickets for the concerts arepriced from z∏.200-500. ●

For more information, includ-ing the dates and locations of

other concerts in Poland, log onto eventim.pl

Concert

French electronica

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7th Warsaw Guitar FestivalNovember 18-19Studio KoncertowePolskiego Radia ul. Z. Modzelewskiego 59Warsaw

Since 2005, the Warsaw GuitarFestival has been melding thesounds of some of the world’sgreatest classical acoustic guitarplayers with traditional orches-tra music. This year’s event willsee no fewer than three worldpremieres, with performancesfrom guitarists including ItalianAniello Desiderio, who has won

more than 18 internationalprizes for his music, and Renne-born impresario François-Xavier Nicolet, whose re-

nowned guitar skills have takenhim all over the world. ●

For more informationlog on to wfg.com.pl

Concert

Guitar heroes

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Le Crazy HorseNovember 19Warszawskie CentrumExpo XXIul. Pràdzyƒskiego 12/14Warsaw

Straight from the AvenueGeorge V in Paris, thisfamed French cabaret issure to stimulate your imag-ination. Le Crazy Horsehave been thrilling audi-ences with their own brandof burlesque performanceand variety entertainmentever since the original estab-lishment opened in 1951.With their first internationaltour, which will see dancersperform their most avant-garde show to date, LeCrazy Horse plans to taketheir show to new fans

around the world. Ticketsfor the concerts in Warsawand ¸ódê are priced from

z∏.200-z∏.600. ●For more information log on

to crazy-horse.com.pl

Cabaret

Visual stimulation

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Jean Michel Jarre

Aniello Desiderio

Le Crazy Horse

NOVEMBER 7-13, 2011 LLAASSTT WWOORRDD www.wbj.pl 23

Tickled pink by November prejudice

Tech Eye

November has only just begun, andTecheye is already feeling a littlepink. That’s right, pink.

Why? Well, itcould conceiv-ably be due tothe “freakishh o r m o n a limbalance”our doctorkeeps whin-ing about.Or it mightbe related tothe recent re-emergence ofrepressed mem-ories in whichGrandma Techeyedresses us like EleanorRoosevelt and forces us to repeat-edly shout “A woman isNOTHING like a tea bag!” whilesitting in a pink bathtub full ofsteaming sugar water.

Probably not, though. A betterexplanation is that November ishorrible and bleak, while the colorpink is not.

Seriously, November is terrible.It’s the worst month in the historyof the world ever, even worse thanthe Old English calendar’s Three-

Milkings Month. Stuck next toDecember, it’s like the buck-

toothed sixth son of aseventh son – a

thing to be half-h e a r t e d l ygawked atand thenquickly for-gotten inanticipationof somethingbetter. It’s

boring andfilled withdepressing hol-

idays (if any-body wantsto argue the

merits of Thanks-giving, we invite you to try and sur-vive a Techeye familygathering).

And so,t h o r o u g h l yafflicted withN o v e m b e rm e l a n c h o l y ,we’ve startedcollecting pinkdishsoap, pinkscarves and pink comput-er wallpaper. No pink socks

though. Our new-found love of the

color has naturally tinged ourwork, as you can plainly see. Take,for example, the BB1 from Boom-botix (boombotix.com), “aportable amplified speakersystem that works with anyaudio device” (as long as saidaudio device has a modern dataport). Pictured is the aptly namedSquinty Pink version, which costs$39.99 + shipping if you get itdirectly from Boombotix. A noteto the penny pinchers out there:it’s on Amazon for $39.98.

The Beer Belt, meanwhile, addsmore than a dash of pink toNovember – there’s a splash ofwhite trash in there too. Don’t letthat discourage you from pickingone up, though. This is the

ultimate accesso-ry for the

hard-partier who lovesto carry around a six-pack of room-tem-perature, well-

shaken beer. It also haspouches for a pack ofcancer sticks and extra

beer money.According to the high-minded

people at BigFatTailgateParty.com,“the Beer Belt is perfect

to bring to parties,NASCAR events,fishing trips, or any-

where you plan ondrinking.” But let’sface it – what they

really mean is “theBeer Belt is perfect for

hillbillies, Texans and any-one who thinks ‘baa’ is sheep

for ‘soul mate.’”

The Beer Belt costs a measureof self-respect, along with $18.95 +shipping. Techeye plans to get twoand wear them like bandoliers at

our family’s next Thanks-giving party.

Our final anti-November prod-uct is the Dia-

mond Baby Bathtubfrom designer Lori

Gardner (thediamond-bathtub.com). The name

is a bit misleading, sincethere are no diamondsinvolved, only pinkSwarovski crystals. The

baby part seems to beoptional too; alternative uses sug-gested by Ms Gardner’s teaminclude “pet bath” or “ice bucket.”

Each Diamond Baby Bathtubcosts $5,200, a relatively heftyprice to pay for a sparkly pink babybathtub, particularly if it dredgesup weird memories of your grand-mother.

On the other hand, if you detestNovember as much as we do, anoversized pink ice bucket might bejust the thing to help drown yoursorrows. And to chill your BeerBelts. ●

Ever been forced to denounce Eleanor Roosevelt by a demented elderly person? Let us know: techeye.wbj@gmail.com

COURTESY OF BOOMBOTIX

COURTESY OF BIGFATTAILGATEPARTY.COM

COURTESY OF THEDIAMONDBATHTUB.COM