VOLUME 18, NUMBER 36 • SEPTEMBER 10-16, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English

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Jaros∏aw Kaczyƒski offered his owneconomic plan last week. Thegovernment calls it “unsustainable”

23

Tech Eye looks at makingmovies with your iPad,and Samsung’s latestsmartphone

DDrraagghhii’’ss ggaammbblleeWill the ECB’s unlimited bond-

buying plan save the euro zone?2

Economic defense

CChhaannggee ooff ppllaannssThe government’s revised budget for

2013 predicts sharply slower growth

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

Business . . . . . . . . . . . . . . . . . . . .6-7

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

Finance & Economics . . . . . . . . . .10

Krynica Economic Forum . . . .12-13

Opinion & Analysis . . . . . . . . . . . .14

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

The List . . . . . . . . . . . . . . . . . . . . . .18

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

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

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

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

In this issue

• DIY expansion

• Twarda Tower sold

• Offices in small cities

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Poland fails to move up

in a ranking of

countries’ economic

competitiveness

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President Komorowski laysout a plan to “defend” Polandfrom a second economiccrisis, and other stories fromlast week’s Economic Forumin Krynica

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LatviaLithuaniaPoland*EstoniaGermanyEU27UKSpainItalyGreece

*Eurostat figures. According to Poland’s own statistics, the economy grew by 2.4 percent in Q2.

SEPTEMBER 10-16, 2012NNEEWWSS2 www.wbj.pl

Wa∏´sa

withdraws

agent lawsuit

Poland’s first post-

communist president,

Lech Wa∏´sa, has

withdrawn a lawsuit

against a former union

leader who had accused

him of being a

government agent during

the 1970s. Krzysztof

Wyszkowski, who was an

opponent of the

communist regime and a

co-founder of the Free

Trade Unions of the

Coast, had referred to Mr

Wa∏´sa as “Bolek,” his

alleged code name in

Poland’s communist-era

secret service. He also

stated that he believed

the former leader of the

Solidarity trade union

had been handsomely

rewarded for information

he passed on to Poland’s

secret police.

Privatization

goal for 2013

Poland’s Treasury

Ministry hopes to raise

z∏.5 billion through the

privatization of state-

controlled financial and

chemical companies in

2013, reported

Rzeczpospolita. Investors

are expected to have the

opportunity to buy shares

in firms including

insurance giant PZU,

Poland’s largest bank

PKO BP, the Warsaw

Stock Exchange and the

National Depository for

Securities. As far as

chemical firms are

concerned, the Treasury

hasn’t revealed any

names.

UN convention

for the

disabledPolish President

Bronis∏aw Komorowski

has signed a UN

convention detailing the

rights of disabled people

– the first international

document of its kind.

“The journey is not over,

we have to go further,

according to the

convention’s stated

direction, adjusting

Polish law to the

convention,” Mr

Komorowski said at the

signing ceremony. He

also encouraged the

“building of more social

acceptance and

sensitivity on the issues

of the disabled,” thanking

the athletes who had won

medals for Poland at the

Paralympics in London.

“Those are medals for all

disabled people,” Mr

Komorowski said. ●

Abbey House ................................6

ABC Data......................................6

Advent International ....................7

Africano Travel ............................6

Alba Tour ......................................6

Amber Gold ..................................4

Apple ......................................6, 23

Aquamaris....................................6

Arch-Deco ..................................16

Areva ............................................8

Art&Business ..............................6

Atena ............................................6

Bank Zachodni WBK..................10

Blue Rays ....................................6

BPT Asset Management A/S ....15

Bricoman....................................17

BZ WBK ........................................3

CAT ............................................15

CBRE ..........................................17

Clifford Chance ..........................15

Comanche Investments ............15

Cushman & Wakefield ..............15

Dom Development ....................17

Echo Investment ........................16

Eko Holding..................................7

Elektra Travel ..............................6

Endurance Real Estate Fund ....15

Enea............................................12

EURO Styl ..................................16

Eurocopter....................................6

Europa Capital LLP....................15

Eurostat........................................3

Filiz Tours ....................................6

Gamelion Studios ........................6

Gazprom ....................................12

GE Hitachi ....................................8

GE Hitachi Nuclear Energy..........8

General Electric ........................13

Google ..........................................6

Henpol ........................................17

Hermanowicz

Rewski Architekcii......................17

HSBC ..........................................10

IVG ..............................................15

Joanna........................................15

Jones Lang LaSalle ......15, 16, 17

JW Construction ........................15

KGHM ........................................12

Lux Med........................................7

Markit ........................................10

Mati World Holiday ......................6

Microsoft ......................................6

Mid Europa Partners ..................7

Mirbud ........................................17

Mrówka ......................................17

Multi Corporation ......................15

Multi Development Poland ........15

Nordea Bank ..............................15

Nowa Era....................................15

OLT Express ................................4

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

PBG ........................................7, 10

Penta Investments ......................7

Peter Nielsen & Partners ..........6

PGE ............................................12

PGNiG ........................................12

PKN Orlen ..................................12

PKO BP ........................................2

Polimex ......................................10

Polimex-Mostostal ....................10

Polski Holding NieruchomoÊci ..4

PZU ..........................................2, 7

Rank Progress ..........................17

Rockefeller Group......................15

Ronson Development ................17

Samsung ....................................23

SEGRO ........................................15

Sky Club ......................................6

Stocznia Gdaƒsk ..........................8

Summerelse ................................6

Tauron ........................................12

Tesco ..........................................17

Tokyo Electric Power Company ..9

Toshiba ........................................8

TP Link ......................................15

Twitter ..........................................4

Warimpex ..................................15

Westinghouse ..............................8

X-Trade Brokers ....................3, 19

ZE PAK..........................................4

Zielona Galeria ..........................17

Global stock exchanges ralliedon September 6 after MarioDraghi, president of the Euro-pean Central Bank, delightedmarkets by announcing thatthe ECB would launch anunlimited bond-buying pro-gram to put downward pres-sure on the borrowing costs ofheavily-indebted euro zonecountries.

The program, calledOutright Monetary Transac-tions, allows for unlimitedECB purchases of sovereignbonds on the secondary bondmarket with a maturity periodof three years or less.

Bond yields have increasedsignificantly for Spain andItaly in recent months, spark-ing worries that both countriesmight suddenly find them-selves incapable of paying the

interest on their debts.The ECB’s move is

designed to reverse this trend,easing pressure on sovereignborrowing costs and convincinginvestors that the euro zonecountries are determined tokeep the currency union alive.

“The euro is irreversible,”Mr Draghi stated whenannouncing his decision.

However, the ECB willonly buy the bonds of coun-tries that officially ask it forhelp and agree to undertakereforms, often involvingpainful spending cuts.

The ECB’s 22-memberGoverning Council made thedecision despite objectionsfrom representatives of theBundesbank, the central bankof Europe’s largest economy,Germany. Bundesbank mem-

bers had earlier said that sucha move would amount to“printing money.”

But markets liked the deci-sion, with the Warsaw StockExchange’s blue-chip WIG20index enjoying a 1.6 percentrise on the day the news wasannounced.

Also, both Spain and Italysaw their borrowing costs fall.

To calm fears that the pro-gram may fuel inflation, theECB said that in the case ofany future purchases, anequivalent amount of fundswould be drained from thebanking system so as to keepthe money supply stable. TheECB could do this by offeringinterest-bearing deposits tobanks equal to the totalamount of government bondsit holds. RReemmii AAddeekkooyyaa

2.2%is the government’s updated GDP growth forecast for

2013. The previous forecast was 2.9%.

z∏.35.6 billionis the budget deficit that the government forecasts in

its new plan.

111is the total number of concessions for shale gas

prospecting issued in Poland.

z∏.4.1 billionis how much open retirement fund assets in Poland

grew in August.

“I would also like to say what could be done in Poland while closing my eyes and

covering my ears.”Prime Minister Donald Tusk, commenting on economic proposals made lastweek by Law and Justice leader Jaros∏aw Kaczyƒski.

Quote of the Week

Gateway to the pastPoignant landmarks are plentiful in Poland but evenso, the remains of Saski Palace (Saxon Palace) areparticularly symbolic of this nation’s discordant past.Log on to WBJ.pl for a glimpse of this architecturallandmark, presented by WBJ’s sister publicationWarsaw Insider.

On WBJ.pl

Numbers in the News

Company index

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13 17TH YOUNG ART AUCTIONEvent: The first auction of the new season: works

of young artists, each one with a startingprice of z∏.500. Works by both new and well-known artists will be up for sale.

Location: DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw

Web: desa.pl

20 POLISH OUTSOURCING FORUMEvent: Organized by Roadshow Poland and Aspire,

the Polish Outsourcing Forum will presentthe latest trends in the outsourcing market inPoland and abroad and will feature represen-tatives from business, government andmedia.

Location: Hyatt Hotel, Warsaw

Web: roadshowpolska.pl/e

30 34TH WARSAW MARATHONEvent: The annual Warsaw Marathon will raise

funds for the Bátor Tábor Polska Foundation,an organization that offers therapeutic camp-ing opportunities to children with chronicdiseases in Central and Eastern Europe. Par-ticipants are expected to be sponsored byfriends, family and colleagues for every kilo-meter they run. Organized by KompaniaWra˝eƒ, the marathon route will travelthrough Warsaw’s key landmarks, includingthe Old Town.

Location: WarsawWeb: kompaniawrazen.pl

September

DATELINE

The ECB’s bond-buying programIN THE SPOTLIGHT

Figures in focus

Baltic or bustGDP growth rates in Q2 2012, percentage change compared withthe same quarter of the previous year, selected EU27 countries

Source: Eurostat

Mario Draghi

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Budget

GGoovveerrnnmmeenntt ssllaasshheess ggrroowwtthhffoorreeccaasstt ffoorr 22001133 ttoo 22..22 ppeerrcceenntt

And yet thegovernment’s newbudget proposal fornext year may still betoo optimistic

The Polish governmentapproved a draft budget for2013 last week, envisaging 2.2percent GDP growth for nextyear, a significant downgradefrom the 2.9 percent growthassumption contained in itsprevious forecasts.

The government expectsthe budget deficit to come inat z∏.35.6 billion – only slightlyhigher than the z∏.35 billionplanned for this year, despitethe significantly weaker eco-nomic growth prospects.

The projections appearoptimistic in the light of theworsening economic outlook,with many economists expect-ing growth of 2 percent orlower in 2013. Moreover,Finance Minister Jacek Ros-towski said at a conference last

week that he didn’t foresee anytax increases next year, leadinganalysts to question where rev-enues would come from.

“This change of macroeco-nomic assumptions meansmaking them more realistic,but they still cannot bedescribed as conservative inthe context of the recent dete-rioration [of the] economicoutlook,” Bank ZachodniWBK chief economist MaciejReluga wrote in a report.

Mr Rostowski said that the

new macroeconomic assump-tions are “realistic,” adding thatthe budget is based on “themost important principle inthese dangerous times inEurope, which is ensuring secu-rity for the Polish economy.”

The government is underpressure to reduce the deficit-to-GDP ratio, but has limitedroom for maneuver since itwill need to balance cuts inspending against the damagethey could do to the economy.

“The central budget deficitwas set more or less at thesame level as in 2012, whichsuggests that the general gov-ernment deficit will not be cutto 2.2 percent of GDP asplanned earlier,” BZ WBK

wrote, referring to the govern-ment’s unchanged plan toreduce the deficit to 2.2 per-cent of economic output.

“Still, under circumstancesof a considerable deteriorationof the economic climate in thewhole of Europe we do notthink that this [will] diminishthe [international] assessmentof Polish fiscal policy,” thebank added.

Mr Rostowski and PrimeMinister Donald Tusk bothadmitted that for this year, itwon’t be possible to lower thepublic deficit below the 3 per-cent limit set by the EU, andhave instead set a target of 3.5percent of GDP.

GGaarreetthh PPrriiccee

Car sales hit

the brakesThe month of August saw

a 13 percent decline in

the sales of new cars

compared to July this

year. Sales results are

also worse than those

from August 2011 by

close to 8 percent. In

August, two-thirds of the

15 biggest car importers

in the Polish market saw

declines in sales, some in

double digits. Lower

demand was recorded

especially in the case of

the less expensive

brands.

Euro zone

unemployment

at 11.3%The euro zone’s

seasonally adjusted

unemployment rate

amounted to 11.3% in

July, according to the

latest data from Eurostat.

That’s in line with

analysts’ expectations,

and the same as in the

previous month. While

the fact that the jobless

rate hasn’t increased

might seem optimistic, it

is still the worst result

since 1995, when

comparable data was

published for the very

first time. ●

Assumptions in the 2013draft budget

• 2.2% GDP growth for 2013

• Inflation at an average of 2.7%

• Employment to grow by 0.2%

• Wages to rise by 1.9%

Fiscal policy

PiS economic plancomes under fireBoth the governmentand economistscriticized theopposition party’slatest set of economicproposals

Poland’s main opposition partyLaw and Justice (PiS) has firedthe opening salvo in what someof its politicians are labelingtheir “autumn offensive,” bypresenting its economic propos-als for Poland.

PiS leader Jaros∏awKaczyƒski has called for theunification of the personal andcorporate income tax codes,z∏.300 vouchers for poorer fam-ilies to spend on sending theirchildren to preschool, undoingthe recently passed pensionreform which raised the retire-ment age to 67 for both menand women, and increasing taxrebates for families with morethan one child.

Mr Kaczyƒski has also calledfor the introduction of aturnover tax for banks andretail chains, a 10-year plan tocombat unemployment andcreate 1.2 million jobs, and theabolition of taxes for pensioners

receiving less than z∏.1,000 amonth. He also said he wants toreduce social security contribu-tions, although he offered scantdetails.

‘Closed eyes’Prime Minister Donald Tuskwas quick to respond, saying thePiS proposals don’t take intoaccount the “context of the cri-sis.”

“I would also like to saywhat could be done in Polandwhile closing my eyes and cov-ering my ears to what is spread-ing around the world, Europeand Poland,” he said.

Finance Minister Jacek Ros-towski went further, describingthe proposals as amounting tonothing more than a “classicfinancial pyramid.” Mr Ros-towski said the cost of the pro-posals are “unsustainable in themedium term,” putting theirprice tag in 2013 at z∏.62.6 bil-lion, far more than the z∏.12-13.5 billion that the PiS leaderhad said they would cost.

“In the first year of imple-mentation, the changes pro-posed by [Mr Kaczyƒski] wouldbe double the amount of thedeficit planned for next year,”

he said.Mr Kaczyƒski, meanwhile,

claims his proposal to reducethe social security burdenwould cost the state z∏.9 billion,while z∏.3 billion would beneeded to launch his jobs pro-gram. Add to that z∏.1 billion forhis pro-family proposals andz∏.400 million for eliminatingtax for pensioners receivingunder z∏.1,000 a month.

He said that his proposalsfor simplifying the tax system,plus the bank tax, would earnthe government an extra z∏.11billion. He also said that thestate should be able to reducethe size of its administration,reforms which would mean hisprogram would have a net costof zero or “very little.”

‘Stimulus’ programEconomists criticized the PiSproposals. Przemys∏aw Kwie-cieƒ, chief economist at X-Trade Brokers, called the pro-posals a “stimulus” programthat Poland couldn’t affordright now.

“The positive effects areuncertain, while the risk isgreat,” he said.

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Jacek Rostowski and Donald Tusk envisage 2.2 percent GDP growth for next year

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SEPTEMBER 10-16, 2012NNEEWWSS4 www.wbj.pl

Privatization

Treasury reveals plan to hit2012 privatization targetOne more successfulIPO – probably ofenergy firm ZE PAK –should be enough tosee the state home

Poland’s Treasury Ministry iscounting on one more majorasset sale to ensure it hits itsyear-end target of z∏.10 billionfrom privatization receipts.

“Revenues from privatiza-tion now stand at z∏.8 billion. Iexpect that if there is onemore big IPO, there will be afurther z∏.800 million to z∏.1billion, thus giving us z∏.9 bil-lion,” Deputy Treasury Minis-ter Pawe∏ Tamborski told jour-nalists last week. He addedthat the state budget cancount on additional revenuesfrom smaller privatizationprojects to bring it nearer thez∏.10 billion target.

The Treasury is currentlypreparing two public offers:those of power-plant operatorZespó∏ Elektrowni Pàtnów-Adamów-Konin (ZE PAK)and real estate group PolskiHolding NieruchomoÊci(PHN).

Mr Tamborski said that theIPO of ZE PAK is the one that

is most likely to go ahead thisyear.

According to the Ministry,ZE PAK, whose financialprospectus was sent to theFinancial Supervision Author-ity at the end of August, willdebut on the stock exchangeat the turn of Q3 and Q4. TheTreasury plans to sell 50 per-cent, the value of which is esti-mated by analysts at aboutz∏.800 million.

When it comes to PHN,Treasury Minister Miko∏ajBudzanowski said in earlyAugust that he wants the

group to debut on the stockexchange this autumn, but not“for any price.” In June, theTreasury was forced to sus-pend the IPO of PHN due tounfavorable market condi-tions, but chief executive Woj-ciech Papierak said last weekthat the company plans to liston the Warsaw StockExchange in November.

The Treasury has a 100percent stake in the realestate group, whose value isestimated at around z∏.2.8 bil-lion.

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5

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15

20

25

30

20122011201020092008

*Planned

2.37

6.97

29.95

13.1

10*

Selling the family silverRevenues from privatization (in z∏. billion), 2008-2012

Source: Ministry of Treasury

Politics

PM accused of lying in Amber Gold scandalAlso, the primeminister’s son hasdecided to sue oversome Polish tabloids’portrayal of hisinvolvement in thedisgraced firm

The political fallout from thedemise of Amber Gold, a“parabank” that attractedclients with promises of highreturns on investments in gold-indexed instruments, continuesto dog Prime Minister DonaldTusk, now that politicians in theLaw and Justice (PiS) partyhave accused him of lying aboutthe matter.

Members of PiS say Mr Tuskreceived information fromPoland’s Internal SecurityAgency (ABW) that AmberGold could be a Ponzi schemeback in May, and failed toinform Poles about the dangersof investing in the parabank.

PiS MP Przemys∏aw Wiplerwrote on Twitter that he hadreceived information that thePM learned Amber Gold hadno gold reserves on May 24,and had lied to Poles about howmuch he knew.

Mr Tusk has denied this,

saying the information hereceived in May “was not differ-ent from what the media werewriting about Amber Gold atthis time,” and gave him no rea-son to sound the alarm.

The affair took on decid-edly political overtones whenit emerged earlier this sum-mer that the prime minister’sson, Micha∏ Tusk, had held aposition at OLT Express, alow-cost airline that wasbacked by Amber Gold andwhich declared itself insol-vent in July. This promptedsuggestions that the PM hadwarned his son about thecompany. The PM’s son is

now suing several tabloids forslander over the matter, say-ing that their portrayal of himsuggests he was involved inthe scam.

As of September 7, over5,000 people have told prose-cutors they lost a combinedamount of nearly z∏.274 mil-lion to Amber Gold. Thecompany’s owner, Marcin P.(Polish law forbids the releaseof the full names of thoseagainst whom charges havebeen brought), was arrestedon August 30 and is facingseven charges of financialwrongdoing.

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SEPTEMBER 10-16, 2012BBUUSSIINNEESSSS6 www.wbj.pl

Investor

incentive planDeputy Prime Minister

and Economy Minister

Waldemar Pawlak is

overseeing work on an

“investment package” to

facilitate foreign

investments in Poland.

The ministry is proposing

dozens of changes to

provide incentives for

companies, speed up

investment processes and

support entrepreneurs.

Eurocopter

promises

Poland

production

French-German

Eurocopter has

announced that if it wins a

tender for the production

of 26 helicopters for the

Polish Army, all of them

would be assembled in

Poland, Puls Biznesu

reported. The Polish Army

is planning to purchase

the 26 helicopters for z∏.3

billion, with the tender set

to be launched this

autumn.

ABC Data notes

30% sales

increasePolish IT distributor ABC

Data announced a 30% y/y

increase in sales for Q2,

2012. Sales grew mainly in

the consumer electronics,

mobile devices and

transport sectors. “The

increase in sales of ABC

Data reinforce our strong

and stable position in IT

distribution. We want to

increase our margins by

reducing costs and by

increasing the sales of

profitable products,”

Micha∏ Rumiƒski,

chairman of ABC Data,

said in a statement. ●

Contact: Miros∏aw Stefanik

ms@pnplaw.pl

Legal News

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Draft budget for 2013On September 4, the government adoptedthe following macroeconomic assumptionsin its draft budget for 2013: actual GDPgrowth (2.2 percent), average inflation rate(2.7 percent), general increase in consump-tion (by 5 percent, nominally), actual growthof salaries in the national economy (1.9 per-cent) and an increase in employment (0.2percent). The draft of the budget act for2013 is due to be referred to the TripartiteCommission for public consultation.

European Commission pro-ceedings against Gazprom

On September 4, the European Commis-sion announced that it had opened formalproceedings to investigate whetherGazprom, a Russian producer and suppli-er of natural gas, limits competition inCentral and Eastern European gas mar-kets, thus violating EU antitrust rules.

The Commission believes thatGazprom’s activities may abuse thecompany’s dominant market position inthe upstream gas supply markets inCentral and Eastern European for EUMember States, in breach of Article 102of the Treaty on the Functioning of theEuropean Union. ●

Travel industry

FFiilliizz TToouurrss ddeeccllaarreedd bbaannkkrruuppttThe company is thetenth Polish travelagency to go bankruptthis summer

Polish travel company FilizTours declared itself bankruptin a statement on its websitelast week.

“Dear customers of FilizTours! The managementboard apologizes for anyinconvenience and the failureto fulfill your dreams becauseof the bankruptcy of the com-pany,” the statement on thewebsite, which is otherwiseout of operation, reads.

The Mazowieckie Mar-shall’s Office had however notreceived an application forinsolvency by the time thestatement was published. Andwhen staff visited the compa-ny’s Warsaw headquarters

there were no workers orequipment left and the officewas empty, Anna Groszyk-Ksià˝ak of the MazowieckieMarshall’s Office, told thePolish Press Agency.

At the time of theannouncement, only two ofthe firm’s clients werebelieved to be abroad, but asmany as 1,500 people hadbooked holidays with FilizTours. Ms Ksià˝ak said thecompany, which has beenpresent on the Polish marketsince 2004, has two insuranceguarantees worth a total ofz∏.400,000.

The company’s foldingwas the latest in a long line ofbankruptcies for Poland’stravel industry this summer,with nine other companiesalso going out of business. InJuly, Sky Club, Alba Tour,

Africano Travel, Blue Rays,Atena and Elektra Travel allwent bust. In August, they

were joined by Aquamaris,Mati World Holiday, andSummerelse, with Filiz Tour

completing the list at thestart of September.

DDaavviidd IInngghhaamm

Art market

Art auction market’sturnover up 90 percent in H1The economic crisishas positivelyimpacted the Polishart market

Poland’s art auction markethas seen a 90 percent increasein turnover in the first sixmonths of this year, accordingto a report by Abbey House,one of Poland’s biggest fine-art auction houses.

Turnover for H1 2012 wasz∏.30.1 million, compared toz∏.15.8 for the same period lastyear. Experts say the drivingforce behind the increase is theglobal economic slowdown.

“Art is the most popularalternative asset group, asinvesting in art is motivated bythe need to secure capitalfrom the crisis. The crisis hasgiven impetus to the global art

market, and Poland is begin-ning to reflect this trend,” saidMaciej Gajewski, an art mar-ket analyst at Abbey House.

Riding on the wave of artmarket growth Poland’s firstart investing magazine,Art&Business, has announcedit plans to launch on Poland’sNewConnect market in Q3.

Chairman of the board ofArt&Business, Jakub Kokosz-ka, told WBJ that growinginterest in art investmentwould spur interest in an artinvestment guide.

“There are an increasingnumber of Poles interested inbuying art, and in readingabout the art market. More-over Poles are starting to treatart as an important element ofa particular lifestyle. Here iswhere we, as a magazine, see a

great opportunity for growth,”Mr Kokoszka said.

Aside from raising capitalfor campaigns promoting themagazine, Mr Kokoszka saidthe reason to go public is tomake the company moretransparent, to allow for bettermarket measurement, andalso to encourage newinvestors who have neverinvested in art before to getinvolved with the art market.

The art market in Poland ishowever still quite underdevel-oped compared to more estab-lished art markets like those inFrance, the US and the UK.

“Poland’s annual [art-mar-ket] turnover is less than onereally outstanding piece of artsold in the US, for example,”Mr Kokoszka said.

IIzzaabbeellaa DDeeppcczzyykk

Smartphone apps

Polish-made game apps are taking market by stormSome 40 percent ofsmartphone users inEurope now use gameapps, many of whichare designed by Poles

Polish game programmers arenow playing a leading role inthe growing popularity ofmobile game applications.Some 40 percent of smart-

phone users in Europe current-ly use game apps on theirphones, according to a recentsurvey by digital analytics com-pany comScore, and an increas-ing number of these apps arebeing designed by Poles.

Polish programmers nowconstitute the third-mostimportant group of gamedesigners for the WindowsPhone operating system,according to Sebastian Szczy-gie∏, CEO of Gamelion Stu-dios, a leading Polish gameprogramming company.

“Poles have created over4,000 apps for Windows, and

for Google’s Android andApple’s iOS, we made 1,000each,” he said.

Gamelion Studios’ flagshipproduct “Monster Shooter”has already been downloadedby 4 million users since itlaunched in 2011, and around100,000 people play the gameevery day, only 3 percent ofwhom are Poles.

Even more impressive isone of Poland’s biggest gamehits, “Speedx 3D,” created byPolish designer Bart∏omiejJanusz. The game has beendownloaded 13 million timessince 2009, and over 300,000

people play it every day. But Polish game program-

ming is still in its “baby stage,”according to Mr Szczygie∏.

“This business is still con-sidered very much a nichehere in Poland, whereas in theUSA the market is veryadvanced,” he said.

But although Polish talentis somewhat in the shadow ofthose working in Westerncountries, Google andMicrosoft are now recognizingtheir worth, providing manyPolish programmers with ben-efits and loyalty programs.

IIzzaabbeellaa DDeeppcczzyykk

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At the time of the announcement, as many as 1,500 people had booked holidays

with Filiz Tours

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SEPTEMBER 10-16, 2012 BBUUSSIINNEESSSS www.wbj.pl 7

Mid Europa confirmsintention to sell Lux MedMid Europa Partners, a privateequity fund, plans to sell LuxMed, one of Poland’s topproviders of private medicalservices, by the end of 2012.

“We are preparing to launchthe sale of Lux Med and I pre-sume it will start in September,”Zbigniew Rekusz, Mid Europapartner in Warsaw, told Reuters,adding that “we wish to sign thefinal sale agreement this year.”

The transaction is likely to

attract bids estimated at aroundz∏.1 billion, Reuters wrote.

Polish media has speculat-ed that insurer PZU, Britain’sBupa, Vienna InsuranceGroup and Italy’s Generalicould be among the biddersfor Lux Med, which has morethan one million clients andcontrols 72 medical centers.

However, PZU has said theLux Med valuation is too highfor a takeover.

“Yes, we are interested in thismarket segment and Lux Med,but our final decision will dependon pricing,” PZU managementboard member RyszardTrepczyƒski told Reuters.

“The valuation that thepress speculates on, the initialexpectations of the investor,that is EBITDA times in theteens, from a business point ofview are out of the question,”he added. RRAA

Construction

PBG seeks z∏.200 million in state aidThe bankruptconstruction firmposted a z∏.1.7 billionnet loss in the firsthalf of 2012

Polish construction firm PBGhas applied for z∏.200 millionin state aid from the IndustrialDevelopment Agency (ARP).

PBG had previously sub-mitted a request for a loan inJuly, but the ARP decided itwas not possible until thefirm’s H1 financial results hadbeen released.

Following the announce-ment of a net loss of z∏.1.7 bil-lion in the first six months of2012, the company’s presidentWies∏aw Ró˝acki said, “Wewill amend our motion to theARP by the end of the week.… We are filing for z∏.200 mil-lion.”

Mr Ró˝acki said that com-pany’s significant net losscame as a result of writingdown the value of assets due tocontinued financing problems.

“In a situation of such greatuncertainty and volatility, themanagement decided to take a

very conservative approach tothe valuation of its assets anddecided to take significantwritedowns,” Mr Ró˝acki con-firmed in a statement.

Poland’s third-largest con-struction firm suffered finan-cially after it decided to investheavily in Poland’s infrastruc-ture boom ahead of Euro2012. The company, whichhelped build three out of fourstadiums for the tournament,filed for bankruptcy in July,blaming difficulties with infra-structure contracts and intran-sigent banks. DDII

Economic competitiveness

Poland 41st incompetitiveness rankingThe country’s positionremains unchangedsince the last ranking

Poland was ranked 41st in the2012-2013 Global Competi-tiveness Index prepared bythe World Economic Forum

in cooperation with theNational Bank of Poland.This is the same as its previ-ous result but worse than its2010-2011 performance,when it was ranked 39th.

“[Poland] displays a fairlyeven performance across all12 pillars of competitiveness.Notable strengths include itslarge market size (20th) andhigh educational standards, inparticular its high enrollmentrates (17th),” the reportstates.

“The financial sector iswell developed (34th) andPoland’s increased trustwor-thiness (16th) has contributedto its very good performancein this domain,” it added.

The report did, however,point out that “furtherenhancing competitivenesswill require a significantupgrading of transport infra-structure, which trails interna-tional standards by a consid-

erable margin (111th),”adding that “while someprogress has been made inthis area since last year, it isnot sufficient to increase itsranking.”

The quality of roads inPoland continues to beassessed very poorly (134th).

And although the improve-ments to some aspects of theinstitutional framework, suchas the transparency of govern-ment policy making and phys-ical security, are “notable,”the business sector remainsvery concerned about the bur-den of government regulation(124th), the report said.

As Poland transitions tothe innovation-driven stage ofdevelopment, it will have tofocus more strongly “ondeveloping capacities in inno-vation and business sophisti-cation.”

“Stronger clusters, moreR&D orientation of compa-

Suitors line up for Eko HoldingtakeoverThree private equity firmshave reportedly demonstratedan interest in taking over Pol-ish supermarket operator EkoHolding. Advent Internation-al, Penta Investments and MidEuropa Partners have allapparently been eying thecompany.

“Eko Holding is an inter-esting company and it wouldalign well with our strategy,”an anonymous Mid EuropaPartners representative toldParkiet.

The newspaper added thatboth Penta and Mid Europaare frustrated with Eko Hold-ing’s main shareholder andpresident of the board,Krzysztof Gradecki, whoseems to be favoring Advent.That company is reportedlyready to pay a hefty premiumfor shares it buys from MrGradecki and his wife.

If Advent were to

announce a call for shares,ordinary Eko shareholderscould receive as much as z∏.4per share, and Mr Gradecki,z∏.6 per share, Parkiet report-ed. Together with his wife, hecontrols 55 percent of thecompany, in a stake estimatedat z∏.129 million.

According to analysts, nowis a good moment for atakeover, because the compa-ny’s valuation is relatively low.A single share in WarsawStock Exchange-listed EkoHolding was priced at z∏.4.80as WBJ went to press, but thecompany has been trading atan average of z∏.3.77 over thelast six months.

Eko Holding owns around300 stores and its capitaliza-tion amounts to z∏.233 million.Its annual revenues have gen-erally exceeded z∏.1.5 billionover the last few years.

GGaarreetthh PPrriiccee

Could do betterGlobal Competitiveness Indexranking, selected countries

Country Position

Switzerland 1

Germany 6

Japan 10

Puerto Rico 31

Czech Republic 39

Poland 41

South Africa 52

India 59

Source: World Economic Forum

nies, and intensified collabo-ration between universitiesand the private sector wouldhelp the country to movetoward a more future orient-ed development path,” thereport concluded.

Switzerland has the mostcompetitive economy in theworld, followed by Singaporeand Finland, according to thesurvey. RReemmii AAddeekkooyyaa

Poland’s rankin previous

years

2011-2012: 41

2010-2011: 39

2009-2010: 46

2008-2009: 53

SEPTEMBER 10-16, 20128 www.wbj.pl IINNTTEERRVVIIEEWW

As Poland prepares to launcha tender for the design andconstruction of its firstnuclear power plant, threecompanies are trying to tipthe scales in their favor.

The contract has been val-ued at up to z∏.50 billion, thebiggest ever signed in Poland.US-Japanese GE Hitachi,Toshiba’s US-based unitWestinghouse and France’sAreva are understandablyvery keen to highlight what, intheir view, makes them thebest pick to lead Poland onthe road to nuclear energy.

Baltic hub?According to ZiemowitIwaƒski, regional executive atGE Hitachi Nuclear Energy,

one of the cards up his firm’ssleeve is a proposal to turnthe Polish shipyards inGdaƒsk into a technical hubfor the firm’s nuclear projectsin Poland and around theBaltic.

The shipyards, once a thriv-ing industrial center and thebirthplace of the Solidaritymovement, have fallen onhard times with Poland’s tran-sition to a free economy. Theidea would be to producemodules, which the firm usesto build its reactors, there. GEHitachi has already signed amemorandum of understand-ing with Stocznia Gdaƒsk aspart of their review process.

“Typically there are over80 modules, each weighing

several hundred tons, perreactor. To make sure thatthese modules can be pro-duced in Poland, we need tocreate an industrial, techno-logical and technical hub,”said Mr Iwaƒski.

“[The shipbuilding] indus-try, which is being liquidated,is in very good shape torestart with new techniquesand processes.” The potentialagreement would not involveGE Hitachi buying any firm,but rather providing expertiseand potentially contracts, heexplained.

Nuclear contracts usuallyinclude obligations to partnerwith local businesses. Forexample, the Polish EconomyMinistry’s nuclear energydepartment said last monththat Poland sees 60 to 70 per-cent of the work involved inbuilding its first nuclearpower station awarded todomestic suppliers.

WBJ sits down with Ziemowit Iwaƒski, regionalexecutive at GE Hitachi Nuclear Energy, to talkabout his company’s bid to provide thetechnology for Poland’s first nuclear powerplant

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Ziemowit Iwaƒski says GE Hitachi wants to turn the Polish shipyards in Gdaƒsk into a

technical hub for the firm’s nuclear projects in Poland and around the Baltic

Nuclear expansionThe Fukushima disaster led to the closure ofJapan’s 50 reactors and spurred Germany topledge to close all of its nuclear reactors by2022.

Despite this, nuclear power is undergoing atremendous expansion all over the world, andespecially in Asia. According to a July reportfrom the United Nations’ nuclear body andthe OECD, world nuclear capacity is expectedto grow by 44 to 99 percent by 2035. In EastAsia, that figure jumps to between 125 and185 percent. The strongest growth is expectedin China, India, Russia and South Korea.

Mr Iwaƒski says GE Hitachi is concentrat-ed on supplying nuclear units to India and theMiddle East, and does not plan to enter Chinaand Russia. The main reason behind this, hesaid, is lack of protection for intellectual prop-erty in these markets.

“We are not under such economic pressureas to offer our technological knowledge toeveryone. Westinghouse and Areva are per-sisting, and we can expect that in a few yearsChinese companies will offer their technolo-gies. It’s a short-term plan, and we are in it forthe long term.” ●

Nuclear power

GE Hitachi appealsto ‘economic logic’

SEPTEMBER 10-16, 2012 IINNTTEERRVVIIEEWW www.wbj.pl 9

Mr Iwaƒski said theplanned Gdaƒsk hub wouldnot only be devoted to GEHitachi’s Polish project, butalso be involved in the firm’sprojects on the Baltic sea.

Hitachi, GE’s partner innuclear power projects, hasbeen selected to build a new1,350 MW nuclear powerplant in neighboring Lithua-nia, which will replace one ofthe Russian-built reactorsfrom the 1980s that wasclosed in 2009. GE Hitachi isalso currently in the processof bidding for a fourth reactorat Finland’s Olkiluoto nuclearpower station, on the coun-try’s west coast.

Apart from its project inGdaƒsk, GE Hitachi hasalready signed memorandumsof agreement with severalfirms over the potential build-ing of Poland’s first nuclearplant, including: Fluor, a USfirm with an engineering divi-sion in Poland, EnergoprojektWarszawa, an engineeringdesign project company thatwas part of Poland’s first(aborted) nuclear project, andRafako, a Polish manufactur-er of boilers.

“In preparation of thenuclear process, which is com-plex, we need to bring ourproduction process to thefield before talking aboutbuilding,” said Mr Iwaƒski.His firm has also signed coop-eration agreements with thelargest number of Polish uni-versities among the three bid-ders, he said.

The safety issueThough involving domesticbusinesses is important forthe Polish government, aneven higher priority isensuring safety. GEHitachi is proposing tobuild one of two reactors.The first, the AdvancedBoiling Water Reactor(ABWR), is the only third-generation reactor operat-ing (in Japan), and hasbeen for over 15 yearswithout any operationalproblems, explained MrIwaƒski. It is also the reactortechnology that was selectedthis year by Lithuanianauthorities for that country’snuclear power program.

The second, the Econom-ic Simplified Boiling WaterReactor (ESBWR), is a gen-eration III+ reactor, mean-

ing it includes fully passivesafety features. The ESBWRuses gravity and the naturalrising of steam to cool thereactor, which allows formore than seven days ofreactor cooling without anyoperator action, onsite oroffsite power, says the firm.According to GE Hitachi,this reactor’s security systemwould allow it to withstandsevere environmental chal-

lenges, including, said MrIwaƒski, phenomena such asthe earthquake and tsunamithat hit Japan in 2011

Although some generationIII+ reactors are scheduled forconstruction in the US, nonehas been installed yet. “Eachfeature of our technology istested physically, and we are

now at the very end of theprocess of licensing this tech-nology in the US,” said MrIwaƒski.

Poland has signed non-exclusive investigation agree-ments for Areva’s EPR reactortechnology, Westinghouse’sAP1000, as well as for GEHitachi’s ABWR and ESBWRdesigns.

Some observers have notedthat French Areva’s bid had a

somewhat unfair advan-tage over the two otherbidders, as it is tied toanother bid from FrenchEDF for the operation ofthe power plant. Mr Iwaƒs-ki did not deny this advan-tage, but said his firm waslooking for “a transparenttender and an open discus-sion.”

Regarding the potentialinfluence of politics on the

Polish government’s decision,Mr Iwaƒski said he was realis-tic. “Any process for such astrategic investment is political,but we prefer if political deci-sions are supported by eco-nomic logic,” he said. “If theplant doesn’t make economicsense, it should not be built.”

AAlliiccee TTrruuddeellllee

z∏.50 billionis the upper estimate of the cost of building Poland’s

first nuclear power plant.

99%is how much world nuclear capacity could grow by

2035, according to the UN and OECD.

2023is when Poland’s first nuclear power plant is

scheduled to become operational.

40%was the proportion of Poles in favor of building thecountry’s first nuclear power plant, according to an

April 2011 CBOS survey.

2013is the date by which a location and firm should be

selected to build Poland’s first nuclear power plant.

Choczewo, Gàski and ˚arnowiec

are the three cities shortlisted to host Poland’s firstnuclear power plant.

Fukushima

“Any process for such astrategic investment ispolitical, but we prefer if political decisions aresupported by economic

logic”

Japan’s Fukushima Daiichi reactor, whichcollapsed following a violent earthquake andtsunami in March 2011, had been built basedon a GE design when it was built in 1970 (GEMark I BWR reactor). It was then operatedby Tokyo Electric Power Company, orTEPCO, for the following 40 years.

According to Mr Iwaƒski, the Fukushimaaccident was due to both operational issuesand technical ones, as opposed to the nucleartechnology used. Moreover, he said, the wallssupposed to protect the plant against the

tsunami were two times too low. When the earthquake and tsunami struck,

GE was working on a scheduled outage of unit4 of the Fukushima Daiichi plant, with over 40employees and contractors on site. The firmparticipated in relief efforts by setting up 24-hour command centers in the US and inJapan. The firm, its charitable foundation andits employees pledged a total of over $12 mil-lion to disaster relief organizations in Japan,and delivered 17 gas turbine units to helpmeet emergency power demands in Japan. ●

But experts expectrate-setters to startlowering borrowingcosts soon

Poland’s rate-setting Mone-tary Policy Council (RPP) leftthe country’s benchmark inter-est rate unchanged at 4.75 per-cent last week. The decisionwas in line with analysts’expectations.

Inflation fell to 4 percentyear-on-year in July from 4.3percent in June, remainingwell above the central bank’stolerance range of 1.5-3.5 per-cent. This was despite annual-ized GDP growth slowing inthe second quarter to 2.4 per-cent from 3.5 percent in Q1.

“Even though the NationalBank of Poland remained onhold at today’s RPP meeting,in our view it is just a matter oftime before the NBP startsmonetary easing,” Lars Chris-tensen, chief analyst and headof emerging markets atDanske Bank, said in an e-mailed statement.

“Given that the outlook forthe Polish economy is bleakand inflation is heading down,

we expect the NBP to cut itskey policy rate by 100 basispoints in total in the coming 12months, bringing the key poli-cy rate to 3.75 percent,” MrChristensen added.

Maciej Reluga, chief econ-omist at Bank ZachodniWBK, was critical of theRPP’s decision. “In our view,an interest rate cut right nowwould be the correct move,justified by the current andexpected economic situationregarding GDP and inflation,”he said in an e-mail. “Appar-ently the RPP prefers gradual

changes in monetary policyparameters, disregarding thefact that economic outlook hasdeteriorated substantiallysince the previous meeting.”

Mr Reluga said the bank wasmaintaining its forecast that theRPP would slash rates by 50basis points in the fourth quarter,and lower them again by another25 at the start of next year. Headded that the first cut couldcome in October, on the back ofweak economic data, and thatinflation would drop along withthe worsening economic situa-tion. AAnnddrreeww KKuurreetthh

SEPTEMBER 10-16, 201210 www.wbj.pl FFIINNAANNCCEE && EECCOONNOOMMIICCSS

Manufacturing

PMI continues paradeof ugly macro figuresThe manufacturingsector contractedagain in August,confirming the sharpslowdown in Poland’seconomy

Poland’s manufacturing PMI,an indicator that measures per-formance of the sector,dropped to 48.3 in August, itssecond-lowest reading in 35months. A reading under 50indicates contraction of the sec-tor, and August’s figure indicat-ed the fifth month in a rowwhere conditions in the manu-facturing sector deteriorated inPoland.

The survey data showed yetanother monthly fall in newbusiness received by Polishmanufacturers. New ordershave declined every monthsince February, the datashowed, and the rate of con-traction accelerated last month.New export orders continuedto decline at a faster rate thantotal new business, partlyreflecting the stronger z∏oty,said HSBC and Markit, thefirms that compile the index.

The volume of inputs pur-chased fell as well – for the sev-

enth month in a row. Firms saidthe lower purchasing was linkedto reduced output requirements.As a result, stocks contracted forthe fifth consecutive month.

The one bright spot was thecontinued hiring that the man-ufacturing sector is seeing.August was the fifth month ina row that jobs were created inthe sector, although growthwas marginal.

In July, the index hadshown slightly less-bad figures,which analysts had taken as asign that the sector might bestabilizing. However, thosehopes were dashed with therelease of Monday’s data.

“The recovery in the previ-ous month, which we took as atentative sign of stabilisation,has now been followed by abroad based deterioration of allthe components of the head-line index,” said Agata Urbaƒs-ka, an economist for Central &Eastern Europe at HSBC, in astatement accompanying therelease of the figures.

“The PMI data amplifies theweakening trend observed forreal activity indicators and putsincreasing pressure for policyresponse in the face of a likelydeeper-than-expected econom-ic slowdown in the comingquarters.” AAnnddrreeww KKuurreetthh

45

47

49

51

53

55

Aug. '1

2Jul.

'12Jun

. '12

May '12

Apr. '1

2Mar.

'12Feb

. '12

Jan. '1

2Dec.

'11Nov.

'11Oct.

'11Sep

. '11

Aug. '1

1

*A reading above 50 indicates expansion, a reading below 50 indicates contraction

Downward trendPoland’s manufacturing PMI reading*, Aug. 2011-Aug. 2012

Source: Markit, HSBC

4.0

4.2

4.4

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5.0

Sep. '12Aug. '12Jul. '12Jun. '12May '12Apr. '12Mar. '12Feb. '12Jan. '12

Rate cut coming?The National Bank of Poland’s headline interest rate, January2012-September 2012

Source: National Bank of Poland

Interest rates

Monetary Policy Councilleaves interest rates on hold

Construction firms’ losses couldripple through economyInstead of giving a boost toPoland’s builders and byextension the economy, theconstruction of highways andstadiums for the Euro 2012soccer tournament has provena crushing burden for con-struction firms. Troubledbuilders PBG and Polimex –which were deeply involved inEuro 2012 infrastructure proj-

ects – revealed enormous loss-es for Q2: The PBG group sawa stunning net loss of somez∏.1.7 billion, while Polimex-Mostostal reported a loss ofz∏.388 million.

Unfortunately, construc-tion firms’ woes aren’t limitedto this sector alone. Banksprovided some z∏.60 billion inloans and guarantees for con-

struction firms, Gazeta Wybor-cza reported, and investmentfunds put plenty of money inconstruction bonds. Many sub-contractors are still waiting forpayment.

The construction sectoremploys some 700,000 peopleand is responsible for nearly 7percent of the country’s GDP,according to the daily. AAKK

Investment spending slashedin some Polish regionsPolish companies spent some7.6 percent more on invest-ments in the first half of 2012than during the same period in2011, according to daily Rzecz-pospolita. Though that num-ber may sound encouraging, itbelies deeper inequalitesamong Poland’s regions, some

of which are losing invest-ments at a surprisingly fastrate. For example theLubuskie voivodship, whichlies along Poland’s border withGermany, saw investmentspending plummet by as muchas 9.9 percent.

“This is the result of uncer-

tainty on euro zone markets,the German market in particu-lar. This is where we are send-ing some 80 percent of exportsof regional companies,”¸ukasz Rut from the LubuskieVoivodship Employers’ Asso-ciation told the daily.

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SEPTEMBER 10-16, 2012KKRRYYNNIICCAA EECCOONNOOMMIICC FFOORRUUMM12 www.wbj.pl

Nuclear energy

KGHM joins forces with utilitiesto fund first nuclear plantFour companies havesigned a letter ofintent to share thecosts of building the3,000-megawattfacility

Power producers PGE, Eneaand Tauron have signed a letterof intent along with coppergiant KGHM to jointly fund theconstruction of Poland’s firstnuclear power plant, valued atz∏.30-50 billion. The companies,all state-controlled, will buyequity in PGE EJ 1, the entitycreated to construct and oper-ate the 3,000-megawatt plant.

Treasury Minister Miko∏ajBudzanowski said the structureof the joint venture will help

spread the costs and risks ofbuilding the plant.

“Today we have a prelimi-nary deal. By the end ofDecember or at the beginningof 2013 we expect some con-crete agreement and concreteactions,” he told reporters lastweek.

The letter, whose signingwas announced at the Econom-ic Forum in Krynica, is the firststep towards a potential agree-ment outlining the rights andobligations of the parties in theproject, which is to be managedby PGE. All signatories have sofar avoided speculating on thesize of the stakes they will holdin the company.

“We have been warning fora long time that PGE wouldn’t

be able to shoulder the projecton its own, and we have justfound a solution,” said PGEpresident Krzysztof Kilian.

“The letter authorizes us tonegotiate,” said Mr Kilian,adding that the decision tocooperate is a breakthrough forPoland’s nascent nuclear ener-gy industry.

Two nuclear plants with atotal output of 6,000 megawattsare to be constructed in Polandby PGE, according to the gov-ernment’s plans, which areaimed at reducing Poland’sreliance on highly polluting coalto produce electrical energy.

The first plant is due tocome online by 2023, the sec-ond by 2030.

GGaarreetthh PPrriiccee

The economy

President lays out vision for Poland’s economyBronis∏awKomorowski wantsreforms in thecountry’s public andprivate financialsystems, as well as itslabor market

As the Polish economy showssigns of a sharp slowdown andworries mount among econo-mists as to how the country willcope, President Bronis∏awKomorowski last week laid outan economic plan that he saidwould help Poland “defenditself from the crisis.”

Speaking at the EconomicForum in Krynica, MrKomorowski listed five priori-ties that he said the govern-ment needed to concentrateon.

The first of these was theimprovement of Poland’s pub-lic finances. “We need to grad-ually reduce our deficit andpublic debt so as to reducedependency on financial mar-kets and create a safety bufferas well as room for maneuverin fiscal policy,” Mr Komo-rowski said.

He added that the cuts inpublic spending should bemade as the private sector

rebounds so as to keep theeconomy growing.

Second, the president point-ed to the private financial sys-tem. Though he stressed that

Polish banks are in good shape,he said it was “necessary to fin-ish work on a deep restructur-ing and even on readjusting theownership rules of banks if adanger arose.”

Polish banks’ profits in thefirst four months of this yearwere 14.2 percent higher thanduring the same period lastyear. However, the president

said the changes he is propos-ing would act as “additionalinsurance policies for citizenswho have savings or have takenout loans.” Some observers

worry that as the crisis bites inother European countries, for-eign banks might withdraw cap-ital from their Polish opera-tions to shore up finances intheir home markets.

More flexible labor marketThird, President Komorowskisaid he wants to reform thelabor market to improve sup-port for the unemployed, togive them better incentives toseek employment and to offermore flexible options for

employers. He said “gettingpeople to work and not onunemployment benefits shouldbe the focus of labor agencies.”

Unemployment has re-

mained a serious problem inPoland since the economictransformation in the early1990s. It currently stands at12.3 percent, up from thesame period last year but animprovement from the nearly20 percent unemploymentrates in the early 2000s.

Fourth, Mr Komorowskisaid it was necessary to “culti-vate the country’s absorptivedomestic market” which has sofar acted as a safety bufferagainst the threat of crisis fromabroad. Poland’s domestic con-

sumer spending is greatly cred-ited as one of the biggest rea-sons the country came throughthe first wave of the global eco-nomic crisis without going intorecession.

Finally, President Komo-rowski said that the Polisheconomy must be opened upto new markets. There mustbe a “geographical diversifica-tion of Poland’s trade andbusiness relations,” MrKomorowski said. He addedthat Polish exports havebecome increasingly reliant ona few major markets, mainlyin the EU, and that this pat-tern of trade involved “dan-gers” in the present economicenvironment.

A quarter of Poland’sexports go to Germany, makingthe Polish economy vulnerableto slowdowns suffered by itswestern neighbor.

Mr Komorowski announcedplans to organize enablingmeetings involving Polish busi-nesspeople during his foreignvisits, like the one held in thecourse of his trip to China lastDecember, with a view to pro-moting the Polish economy andfacilitating new contacts.

After laying out these prior-ities the president argued thatto successfully fight the crisis inEurope more EU integrationwas needed, especially in termsof economics.

RReemmii AAddeekkooyyaa

Unity was a key theme atthis year’s EconomicForum in Krynica-Zdrój,southern Poland. Politicaland business leaders whogathered at the event’s22nd incarnation last weekcalled loud and often for afocus on increased Euro-pean cohesion and solidar-ity as a means of facing thegrowing economic storm.

Business deals werealso announced, includinga landmark letter of intentsigned by three Polish util-ities and copper minerKGHM, to share the bur-den of paying for Poland’sfirst nuclear power plant.

Here, WBJ presents aselection of the mostimportant stories fromthe event, touching on abroad range of themes. ●

KrynicaEconomicForum

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President Komorowski wants “geographical diversification” of Poland’s trade

Shale gas

Shale could bring state z∏.87 bln, create 500,000 jobsThat’s according tothe most optimisticoutlook presented in anew report at thisyear’s KrynicaEconomic Forum

Polish oil and gas companyPKN Orlen and the Center forSocial and EconomicResearch (CASE) say the Pol-ish shale gas industry couldcreate more than half a millionjobs and generate tax revenuesof z∏.87 billion by 2020.

A joint report by the twoentities presented at the Eco-nomic Forum predicts thatshale gas will not only increasePoland’s importance in theinternational arena, but alsostrengthen the position ofcountries currently dependenton Russia’s gas giantGazprom, since they will be

able to import the resourcefrom Poland.

During the presentation,CASE presented three possi-bilities for the future develop-ment of the shale gas industryin Poland. The three scenariostake into account differing lev-els of demand and investmentin the energy sector.

Shale gas scenariosThe most optimistic outlookforesees 15 billion cubicmeters of shale gas being pro-duced by 2020. If this sce-nario were to be realized,Poland’s budget could receivez∏.87 billion annually fromtaxes related to shale gasextraction.

The most pessimistic sce-nario assumes there will beproduction of 3 billion cubicmeters of shale gas, while themiddle-of-the-road estimate

sees production at 5.6 billioncubic meters.

However, the optimisticapproach presented by Orlenand CASE was received cool-ly by Dr Piotr Moncarz ofStanford University, an ener-gy expert. He said that inorder to start thinking aboutexploiting shale gas on a com-mercial scale, Polish legisla-tion would have to be system-atized when it comes to regu-lations dealing with shale gasextraction and sales.

Aside from these projec-tions, PKN Orlen announcedits ambition to acquire thelargest number of shale gasconcessions in Poland. Thefirm currently owns eightlicenses for shale gas acrossthe country while gas monop-olist PGNiG has the most,with a total of 15.

IIzzaabbeellaa DDeeppcczzyykk

SEPTEMBER 10-16, 2012 KKRRYYNNIICCAA EECCOONNOOMMIICC FFOORRUUMM www.wbj.pl 13

Europe

Old Continentsearching forcohesion, leadership Politicians andbusiness leaders inKrynica saidEuropean leaders facemajor hurdles in theirquest to acceleratedevelopment andintegration

While politicians in Brusselscontinue to debate the sizeand shape of the next EUbudget, leaders in Central andEastern Europe are focusingon how to most effectively usecohesion funds to acceleratethe region’s economic devel-opment.

Politicians and businessleaders on a panel at the Eco-nomic Forum in Krynicaagreed that to implement amodern and effective cohesionpolicy, all EU member stateswould have to pull together asa unified whole. Moreover,professional management andoversight at the local levelwould have to be stepped up toensure the funds were put towork more efficiently.

They expressed fears, how-

ever, that the ongoing Euro-pean economic crisis andgrowing mistrust among mem-ber states was not conducive toincreased unity – a situation,the panelists agreed, that doesnot bode well for non-mem-bers looking to join the bloc.

Micha∏ Boni, the PolishMinister of Administrationand Digitization, said Polandwas still drawing lessons fromits past experiences with EUcohesion policy.

“The basis must be of well-thought-out and constructedprojects. I have the impres-sion that some [projects] inthe past were prepared toohastily,” he said.

Leadership issuesThe minister also suggestedthat a new champion of Euro-pean unity was needed, some-one in the image of RobertSchuman, the former PrimeMinister of France and Presi-dent of the European Parlia-mentary Assembly.

However Mario Baldassarri,chairman of the Finance Com-mittee of Italy’s upper house of

parliament, said that it wouldrequire a cadre of like-mindedEuropean leaders to cope withthe growing demands beingplaced on politicians who callfor deeper integration.

Hendrik Bourgeois, vicepresident, European affairsGeneral Electric, said the sin-gle market is a necessary ele-ment for improving competi-tiveness in Europe, as is reduc-ing red tape.

Mr Baldassarri also under-lined that the entire Euro-pean Union in the last 10years had lost over 1 percentof its GDP, resulting in hugeunemployment figures.

In the face of these signifi-cant hurdles, panelists agreedthat Europe needs well-coor-dinated and long-term plansto engage its regions both eco-nomically and politically, andto improve Europe’s competi-tiveness.

This, they said, is the mostrealistic way for Europe toavoid a political and economiccollapse, and to prevent itselffrom becoming marginalizedon the global stage. GGPP

Quotes from Krynica

WBJ presents a selection of thebest soundbites from theEconomic Forum in Krynica

“Poland isn’t a source of crisis,it’s not part of Europe’s woes.”

Polish President Bronis∏aw Komorowski recalledPoland’s continued economic growth throughout theeconomic crisis.

“The division into old and newEurope is being replaced by thenew order of a Europe of theable and the less courageous.”

President Komorowski said the European debt crisis hadrevealed a division between states able to cope and thosewithout sufficient courage.

“The financial crisis woke manyEuropeans up from a luxurioussnooze, making them realizethat wealth and a high standardof living can’t be taken forgranted.”

President Bronis∏aw Komorowski, again, on what thecrisis has revealed about Europe.

“We have been warning for along time that PGE wouldn’t beable to shoulder the project onits own, and we have just founda solution.”

PGE president Krzysztof Kilian joined representatives ofEnea, Tauron and KGHM in signing a letter of intentfor cooperation in funding Poland’s first nuclear powerplant.

“I think the world has changedin the way they consumefootball.”

Daniel Marion, head of information and communica-tions technology at European soccer’s governing body,said Euro 2012 marked a watershed in the way fans con-sume sports online. At least half of surfers opted to usesmartphones and tablet computers to obtain onlineinformation about the tournament.

“I have the impression thatsome [projects] in the past wereprepared too hastily.”

Poland’s Minister of Administration and Digitization,Micha∏ Boni, said Poland was still drawing lessons fromits experiences with EU cohesion policy.

EEuurrooppeeaann eexxcceeppttiioonnaalliissmm

SEPTEMBER 10-16, 2012OOPPIINNIIOONN && AANNAALLYYSSIISS14 www.wbj.pl

Jean-Claude Trichet

T he creation of Europe’s eco-nomic and monetary union isunique in the history of sover-

eign states. The euro zone constitutes a“society of states” of a completely newtype, one that transcends the tradition-al Westphalian concept of sovereignty.

Europe’s monetary union hasworked remarkably well. Since theeuro’s launch in 1999, price stabilityhas been maintained for 17 countriesand 332 million people, with averageyearly inflation of just 2.03 percent –better than Germany’s record from1955 to 1999. Moreover, the euro zonehas created 14.5 million new jobs since1999, compared to 8.5-9 million in theUnited States.

Likewise, on a consolidated basis,the euro zone’s current account is bal-anced, its debt-to-GDP ratio is wellbelow that of Japan, and its annualpublic-finance deficit is well below thatof the US, Japan, and the UnitedKingdom.

Weak economic unionThe euro per se thus does not explainwhy the euro zone has become the sickman of the global economy. To under-stand that, one has to consider theweakness of Europe’s economic union.

For starters, the Stability andGrowth Pact, intended to ensuresound fiscal policies in the euro zone,was never correctly implemented. On

the contrary, in 2003 and 2004, France,Italy, and Germany sought to weakenit. The European Commission, theEuropean Central Bank, and the smalland medium-sized euro zone countriesprevented the SGP from being dis-mantled, but its spirit was gravely com-promised.

Moreover, euro zone governancedid not include monitoring and surveil-lance of competitiveness indicators –trends in nominal prices and costs inmember states, and countries’ externalimbalances within the euro zone. (In2005, long before the crisis, I called, onbehalf of the ECB’s governing council,for appropriate surveillance of a num-ber of national indicators, includingunit labor costs.)

A third source of weakness is thatno crisis-management tools wereenvisaged at the euro’s launch. Formuch of the world at the time, “benignneglect” was the order of the day, par-ticularly in the advanced economies.

Finally, the high correlationbetween the creditworthiness of a par-ticular country’s commercial banksand that of its government creates anadditional source of vulnerability,which is particularly damaging in theeuro zone.

‘Federation by exception’Fortunately, much progress has beenmade, including significant improve-

ments to the SGP and the introduc-tion of surveillance of competitivenessindicators and national imbalances.New crisis-management tools havebeen put in place. And there is a con-sensus that the EU’s stability andprosperity requires completion of thesingle market and obligatory structur-al reforms for all 27 members. A pro-posed banking union would help toseparate the commercial banks’ cred-itworthiness from that of their govern-ment.

But none of this is enough. Insteadof imposing fines on countries thattransgress rules and ignore recom-mendations, as the SGP was supposedto do, the European Commission, theEuropean Council, and – this is essen-tial – the European Parliament shoulddecide directly on measures to beimmediately implemented in thecountry concerned. Fiscal and certainother economic policies should besubject to activation of a euro zone“federation by exception.”

The idea that sharing a single cur-rency also means accepting limitationson fiscal sovereignty is not new. A“federation by exception” merelydraws the logical consequences fromthe ineffectiveness of the fines envis-aged by the SGP, and is fully consistentwith the concept of subsidiarity thathas been applied since the SGP’sintroduction: as long as national eco-

nomic policy complies with the frame-work, there are no sanctions.

Perhaps the most important ele-ment of the “federation by exception”would be its strong democraticanchor. Its activation would be subjectto a fully democratic decision-makingprocess, with clear political accounta-bility. More precisely, decisions toimplement measures proposed by theCommission and already approved bythe Council would require a majorityvote by the European Parliament –that is, those representatives electedfrom the EU’s euro zone members.

In such exceptional circumstances,the parliament of the country con-cerned should have the opportunity toexplain to the European Parliamentwhy it could not implement the rec-ommendations proposed, while theEuropean Parliament could explainwhy the euro zone’s stability and pros-perity are at stake. But the final wordwould belong to the European Parlia-ment.

Euro zone finance ministryIn the past, I have suggested establish-ing a euro zone finance ministry,which would be responsible for acti-vating economic and fiscal federationwhen and where necessary, and formanaging new crisis-managementtools like the European StabilityMechanism. It would also be responsi-

ble for overseeing the banking union,and it would represent the euro zonein all international financial institu-tions and informal groupings.

But, most important, “federationby exception” would ultimately ceaseto be an exception. The finance minis-ter would be a member of the EU’sfuture executive branch, together withthe other ministers responsible forother federal departments.

From this perspective, the Com-mission presages a future Europeandemocratic government, as GermanFinance Minister Wolfgang Schäuble,who has proposed instituting an elect-ed president, has suggested. TheCouncil, meanwhile, appears to antic-ipate the European Parliament’sfuture upper house, with the lowerhouse already elected by all EU citi-zens.

I am fully aware of the boldness ofwhat I propose. But Europeans mustlearn the lessons of the recent past.We must clarify the nature of whatmust be done to secure governancethat is both democratic and effectiveas circumstances require. ●

Jean-Claude Trichet waspresident of the

European Central Bankfrom 2003 to 2011.

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

T he misguided belief that “thistime is different” led policy-makers to permit the credit

boom of the early 2000s to continuefor too long, thus preparing theground for the biggest financial crisisin living memory. But now, when itcomes to recovery, the belief that thistime should not be different might beequally dangerous.

Many policymakers and econo-mists have observed that the recoveryfrom the 2007-2008 financial crisis hasbeen much slower than most recover-ies of the post-war era, which neededonly a little more than a year, on aver-age, to restore output and employ-ment to their previous levels. By thisstandard, the current recovery is unac-ceptably slow, with both output andemployment still below the previouspeak. Policymakers thus feel justifiedin using all available macroeconomiclevers to achieve a recovery thatresembles those of the past.

In doing so, officials are reluctantto take into account that the recentcrisis resulted from an unprecedented

credit boom gone bust. To someextent, it should have been logical toexpect an unprecedented upturn aswell. When the crisis erupted, manyhoped for a V-shaped recovery,notwithstanding a substantial body ofresearch showing that recoveries fromrecessions caused by a financial crisistend to be weaker and slower thanrecoveries from “normal” recessions.

The observation that recoveriesfollowing a financial crisis are differ-ent suggests that standard macroeco-nomic policies might not work as onewould usually expect. And a transat-lantic comparison suggests that thismay indeed be the case.

Striking similaritiesOne would expect that the shock fromthe financial crisis should be compara-ble for the United States and the eurozone, given that they are of similarsize, exhibit a similar degree of inter-nal diversity, and experienced a similarincrease in house prices (on average)in the years preceding the bust. More-over, the relative increase in debt

(leverage) in the financial system wassimilar on both sides of the Atlantic.

And, indeed, US economic per-formance has been very similar to thatof the euro zone since the start of thecrisis: GDP per capita today is stillabout 2 percent below the 2007 levelon both sides of the Atlantic. Theunemployment rate in the US and theeuro zone has increased by about thesame amount as well – three percent-age points.

Of course, one can point to partic-ular countries in Europe that aremired in recession. But the US alsohas depressed areas. For Ireland andSpain, read Nevada and California(and, for Greece, read Puerto Rico).The proper comparison is thusbetween the average of two continen-tal-sized economies, both of which arecharacterized by considerable internaldiversity.

These similarities in economic per-formance are striking, given thatmacroeconomic policy in the US andthe euro zone has been so different.The US let its fiscal deficit rise above

10 percent of GDP, compared to lessthan 6 percent of GDP in the eurozone. Measured over a five-year peri-od (2007-2012), the US has thus notdone any better than the euro zone,although it has relied on a much largerdose of fiscal expansion. In the US(and the United Kingdom), the gener-al government deficit today is stillaround 8 percent of GDP, comparedto a little more than 3 percent of GDPin the euro zone, and the US debt-to-GDP ratio has increased by more than41 percentage points, compared to“only” 25 points in the euro zone.

In fact, the economy that hasimbibed the strongest dose of expan-sionary policy has recovered less:GDP per capita in the UK today is still6 percent below the 2007 level. Ofcourse, one could argue that the UKwas particularly exposed to the bust,because financial services make up alarge part of its GDP. But the factremains that its economy, supposedlythe most flexible in Europe, has notrecovered from the shock five yearslater, despite massive fiscal and mone-

tary stimulus, coupled with a substan-tial devaluation.

Abrupt change coming?On balance, it thus seems that thistime – or, rather, this post-crisis envi-ronment – really is different, and thatmacroeconomic policies have done lit-tle to improve matters. Countries likethe US and the UK, which are accu-mulating debt at a record pace, arebetting that deficit spending will even-tually pay off in a stronger economy.But they risk ending up with debt-to-GDP ratios north of 100 percent,which would leave them at the mercyof financial markets should sentimentturn against them.

History suggests that interest rateswill not remain at record-low levelsindefinitely, and that when changecomes, it might be abrupt. Why shouldwe expect this time to be different? ●

Daniel Gros is director ofthe Center for European Policy Studies.

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

TThhiiss rreeccoovveerryy iiss ddiiffffeerreennttDaniel Gros

MANAGING EDITORGARETH PRICE(GPRICE@WBJ.PL)

POLITICS EDITORREMI ADEKOYA(RADEKOYA@WBJ.PL)

REAL ESTATE EDITORADAM ZDRODOWSKI(AZDRODOWSKI@WBJ.PL)

SPORTS & LIFESTYLE EDITORDAVID INGHAM(DINGHAM@WBJ.PL)

JOURNALISTIZABELA DEPCZYK(IDEPCZYK@VALKEA.COM)

CONTRIBUTORSE. BLAKE BERRYEWA BONIECKAALICE TRUDELLE

COLUMNISTSADAM NARCZEWSKIANDREW NAWROCKI

PRODUCTION MANAGERPIOTR WYSKOK

GRAPHIC DESIGNER¸UKASZ MAZUREK

MARKETING &SALES

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

MAGDALENA KARPI¡SKA(MKARPINSKA@WBJ.PL)

AGNIESZKA KUCZY¡SKA(AKUCZYNSKA@WBJ.PL)

EWA BROGOSZ-KORYCKA(EBROGOSZ-KORYCKA@WBJ.PL)

KAROL KOSIOREK(KKOSIOREK@WBJ.PL)

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

SUBSCRIPTIONS MANAGERAGNIESZKA MICHALIK(AMICHALIK@VALKEA.COM)

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

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

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

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

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 SEPTEMBER 10-16, 2012, LI 17/36

JWC opens

Krynica hotelDeveloper JW

Construction opened its

Czarny Potok project in

Krynica-Zdrój in

southern Poland on

September 7. The

scheme includes a

231-room hotel, a

wellness and spa facility

and the largest

conference center in the

region. It is situated on

more than three

hectares of land and

comprises 12 buildings

with a total of over

13,100 sqm of space.

Approximately 150

people will be working

on the premises.

SEGRO

acquires

logistics parkIndustrial property

developer and manager

SEGRO has acquired the

O˝arów Business Center

logistics park near

Warsaw from the Orco

Property

Group-managed

Endurance Real Estate

Fund for €14.1 million.

The purchase is aimed at

enhancing the

company’s presence in

the Warsaw market.

O˝arów Business Center

is located 16 kilometers

from Warsaw and

comprises four

stand-alone buildings

offering a total of 36,600

sqm of space. The park

is currently occupied by

companies including

CAT, Joanna, Nowa Era

and TP Link. ●

Twarda Tower sale . . . . . . . . . .15

Norway House sold . . . . . . . . . .15

Forum Radunia agents . . . . . . .15

New office destinations . . . . . .16

Oxygen certification . . . . . . . . .16

Property-related stocks . . . . . .16

Bricoman plans . . . . . . . . . . . . .17

Rank Progress mall . . . . . . . . . .17

Galeria Bialska construction . .17

In this issue

1716

A host of new destinationshave emerged in the Polishoffice market

DIY markets chain Bricomansees room for more Polandstores

Transactions

Europa Capital buys Twarda Towerbuilding in central WarsawThe skyscraper isexpected to undergoextensive refurbish-ment next year

Real estate fund managementfirm Europa Capital LLP hasacquired the Twarda Toweroffice skyscraper in downtownWarsaw from a fund managedby BPT Asset ManagementA/S. The value of the transac-tion has not been revealed.

The Twarda Tower buildingwas completed in 2003 andcomprises 27,000 sqm ofspace. It is located on ul. Twar-da in Warsaw’s central busi-ness district and is occupied bytelecom operator Telekomu-nikacja Polska.

The skyscraper is expectedto undergo extensive refur-bishment in 2013, withWarimpex having beenappointed to manage theprocess. Europa Capital and

Warimpex have previouslycooperated on two other War-saw projects – the SobieskiHotel & Offices and theCityPoint Distribution Park.

“We are delighted to havecompleted this transactionbecause opportunities toacquire prime assets in centralWarsaw such as the TwardaTower are rare,” Michael Abel,a senior associate at EuropaCapital LLP, said in a statement.

“We are pleased to see War-saw maintaining its leadingposition in the region in termsof real estate volume transact-ed,” Tomasz Puch, nationaldirector, capital markets, atJones Lang LaSalle Polandwhich advised BPT in thetransaction, said in a statement.

“Furthermore, this invest-ment demonstrates continuedinvestor demand and increas-ing liquidity, not only for core-type products but also for

assets requiring more intenseasset management engage-ment,” Mr Puch added.

A member of the Rocke-

feller Group, Europa Capitalis currently investing two fundsfor European property invest-ment – Europa Fund III and

Europa Emerging Europe –which raised a total of €895million in equity capital.

AAddaamm ZZddrrooddoowwsskkii

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Twarda Tower comprises 27,000 sqm of space located in Warsaw’s CBD

IVG buys Norway Houseoffice building in WarsawReal estate company IVG hasacquired the Norway Houseoffice building located on ul.Lwowska in downtown War-saw from a Pramerica-man-aged fund. The value of thetransaction has not been

revealed.The nine-storey building

offers approximately 5,400sqm of class-A office spaceand is currently fully leasedout. The main tenant, occupy-ing more than half of the total

space, is the international lawfirm Clifford Chance, withother tenants includingNordea Bank and ComancheInvestments.

The purchase of NorwayHouse is the seventh transac-tion in the Polish commercialproperty market concluded byIVG in the last two years. Ear-lier, the company bought Vic-toria, BTC, Ujazdowskie 10,N21 and Pa∏ac M∏odzie-jowskiego in Warsaw and soldthe city’s Horizon Plaza build-ing.

“We hope that the acquisi-tion of Norway House will notbe the last proof of our invest-ment activity in the Warsawcommercial property marketthis year,” Maciej Zajdel,managing director of IVG inPoland, said in a statement.

AAddaamm ZZddrrooddoowwsskkii

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Warsaw Business Journal presents Real Estate weekly newsletter

• Know about the newest projects before they’re on the market• Keep up to date on the latest tenders and auctions• Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate

or

Multi appointsForum Radunialeasing agentsDeveloper Multi Develop-ment Poland has appointedJones Lang LaSalle and Cush-man & Wakefield as the leas-ing agents for the plannedForum Radunia shopping cen-ter in Gdaƒsk on the BalticSea.

In May this year, a consor-tium of Multi DevelopmentPoland and Multi Corporationsigned an agreement with theMunicipality of Gdaƒsk con-cerning the development ofthe Hay and Crayfish Marketsarea in the city.

In the first phase of theForum Radunia project,scheduled to be completed in2015/2016, a 52,000-sqmshopping center, a parking lot

and public infrastructure willbe developed. The secondphase will involve the con-struction of an office park by2020.

“Forum Radunia is a proj-ect combining commercialfunctions with a significantinfrastructural investmentwhich will revitalize and rede-fine the very center ofGdaƒsk,” Marek Noetzel,partner at Cushman & Wake-field, said in a statement.

He added that the projectwould substantially changeand diversify the retail offer inthe region. “It is one of themost interesting projects inEurope,” Mr Noetzel said.

AAddaamm ZZddrrooddoowwsskkii

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The 5,400-sqm scheme is now fully leased out

SEPTEMBER 10-16, 2012LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl

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

on Sep 6 (z∏. mln)

BUDIMEX 48.85 2.82 45.85 88.35 -24.85 25,530,098 1,247.15

CELTIC 10.49 2.34 7.02 22.70 -41.72 34,231,466 359.09

DOMDEV 24.70 -3.85 23.50 42.80 -13.30 24,670,397 609.36

ECHO 3.79 2.43 3.05 4.40 11.14 420,000,000 1,591.80

ELBUDOWA 93.65 -0.90 87.00 120.00 -14.08 4,747,608 444.61

ENERGOPLD 0.20 -16.67 0.20 2.98 -93.33 70,972,001 14.19

ERBUD 11.65 -0.85 11.33 23.30 -33.05 12,644,169 147.30

GANT 3.61 -27.22 3.61 9.85 -59.89 20,120,000 72.63

GTC 6.30 -0.63 5.20 12.49 -42.83 319,372,990 2,012.05

HBPOLSKA 0.05 -16.67 0.05 1.43 -95.24 210,558,445 10.53

JWCONSTR 4.13 4.29 3.85 8.42 -49.33 54,073,280 223.32

LCCORP 0.89 -4.30 0.85 1.48 1.14 447,558,311 398.33

MARVIPOL 10.39 -1.24 6.20 11.00 19.01 36,923,400 383.63

MIRBUD 1.10 1.85 0.98 2.68 -57.69 75,000,000 82.50

MOSTALWAR 12.70 -2.31 11.30 25.88 -36.97 20,000,000 254.00

MOSTALZAB 0.93 5.68 0.81 1.80 -39.61 149,130,538 138.69

ORCOGROUP 6.52 -28.98 6.52 22.79 -70.63 99,992,889 651.95

PBG 5.11 -10.51 4.83 92.00 -94.26 14,295,000 73.05

PLAZACNTR 2.08 2.46 1.80 2.94 -16.80 297,174,515 618.12

POLAQUA 3.85 -1.03 3.60 12.11 -69.20 27,500,100 105.88

POLIMEXMS 0.56 16.67 0.48 2.04 -67.06 521,154,076 291.85

POLNORD 11.90 -4.80 10.49 19.85 -7.61 23,798,439 283.20

RANKPROGR 7.60 4.97 7.10 16.97 -21.81 37,145,050 282.30

ROBYG 1.19 -4.03 1.04 1.75 -5.56 257,935,500 306.94

RONSON 0.64 0.00 0.63 1.15 -39.05 272,360,000 174.31

TRAKCJA 0.76 16.92 0.65 1.87 -52.20 232,105,480 176.40

ULMA 37.50 -1.70 37.20 74.80 -36.87 5,255,632 197.09

UNIBEP 4.35 -1.14 3.60 6.61 -2.90 34,021,684 147.99

WARIMPEX 2.98 0.34 2.64 5.88 -50.33 54,000,000 160.92

ZUE 6.40 10.54 5.07 9.50 -28.89 22,000,000 140.80

Property-related stocks

Oxygen office building

GreenBuilding-

certified

The Oxygen office building,located in Szczecin in north-western Poland and developedby Warsaw Stock Exchange-listed Echo Investment, hasobtained a GreenBuilding cer-tificate of energy efficiencyand environmental perform-ance.

In February last year, aGreenBuilding certificate wasalso granted to the EchoInvestment-developed ParkPost´u office complex in War-saw. In December 2011, thesame certificate was given to

the Astra Park office buildingsin Kielce.

All of Echo Investment’snew projects will have greencertification, the companysays. It is now preparing to useBREEAM standards.

Szczecin’s Oxygen buildingwas designed by the Gdynia-based Arch-Deco architectur-al studio and was turned overfor use in the third quarter of2010. The nine-storey buildingoffers over 14,000 sqm ofleasable space.

AAddaamm ZZddrrooddoowwsskkii

Office

PPoollaanndd’’ss ooffffiiccee mmaarrkkeetteevvoollvviinngg iinn tthhee rreeggiioonnssNew research pointsto eight emergingregional officedestinations in thecountry

The Polish office market isdominated by the nine majoroffice locations of Warsaw,Kraków, Wroc∏aw, Tri-city,Katowice, Poznaƒ, ¸ódê,Lublin and Szczecin, but newresearch shows that a numberof emerging destinations in thecountry are also increasinglyattracting investors’ attention.

According to the “NewOffice Locations in Poland”report by Jones Lang LaSalle,the office market is evolvingand the regional cities ofRzeszów, Kielce, Bia∏ystok,Opole, Bydgoszcz, Olsztyn,Toruƒ and Radom haveemerged as start-up and alter-native destinations.

Demand for office space inthese locations is mainly gener-ated by local companies seekingmore functional and prestigiousoffices and external investors,including business services sec-tor firms that are escaping

large-city competition and look-ing for a qualified workforceand cost-effectiveness.

“Service centers are begin-ning to compete with eachother in talent retention, whichincreases the costs and distractsthem from their core business.Therefore, companies are seek-ing alternative, attractive loca-tions,” John Duckworth, JLL’smanaging director in Polandand CEE, said in a statement.

The modern office supply inthe eight cities in question nowamounts to a combined 260,750sqm, which accounts for fivepercent of the entire officestock in Poland, the study

found.Over 57,600 sqm of office

area is under construction inthe cities examined in thereport, most of which can befound in Olsztyn (15,400 sqm)and Radom (13,000 sqm). Anadditional 114,000 sqm of spaceis in the pipeline.

The Jones Lang LaSalleresearch also found that newclass-A and class-B+ projectsare appearing in several othercities with populations ofaround 100,000, with NowySàcz, Zielona Góra and Cz´sto-chowa some of the mostnotable examples of the trend.

AAddaamm ZZddrrooddoowwsskkii

0

5,000

10,000

15,000

20,000

BydgoszczKielceToruńBia∏ystokRzeszówRadomOlsztyn

Office alternatives Under-construction office space (sqm) in selected emergingPolish office destinations

Source: Jones Lang LaSalle

CO

UR

TE

SY O

F J

ON

ES

LO

NG

LA

SA

LL

E

Developer EURO Styl is planning a 14,000-sqm office

building called Centaurus in Olsztyn

CO

UR

TE

SY O

F E

CH

O I

NV

ES

TM

EN

T

The Oxygen building offers 14,000 sqm of leasable space

SEPTEMBER 10-16, 2012 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17

Retail

BBrriiccoommaann ppllaannssffuurrtthheerr PPoollaannddeexxppaannssiioonnThe company sees thecountry’s DIY marketas stable and offeringlong-term growthpotential

DIY markets chain Brico-man will be expanding inPoland in upcoming years,with two new stores sched-uled to open in 2013 andthree expected to open annu-ally in large and mid-sizedPolish cities in later years,said Arnaud Boule, generaldirector of Bricoman Polska.

According to Mr Boule,the Polish DIY market is sta-ble, despite the economicslowdown. “In the long term,Poland is perceived as a placewith very large potential interms of the demand for con-struction materials,” MrBoule said.

He added that this resultsfrom Poland’s stable eco-nomic situation in compari-son to other European coun-tries and the fact that thePolish residential market isstill relatively poorly devel-oped. Where the market iswell-developed, constructionmaterials are often not ingreat demand, he noted.

The current slowdown inthe Polish housing markethas not hit the DIY sectorvery hard. Mr Boule said thatthere has been some negativeimpact but added that whilesome entities have lostclients, others have gainedthem.

“Most large DIY marketplayers continue to open newfacilities, even though theydo not see the turnover intheir existing stores grow – orsee very small growth –which means they areincreasing their share of themarket at the expense of thetraditional distribution chan-nels,” Mr Boule said.

Mature marketMagdalena Fràtczak, retailagency director at CBRE, saidthat the DIY sector is seeingstable growth in Poland, withthe leading players havingalready secured locations inlarge cities and started expan-sion into cities with popula-tions of below 100,000.

She noted that storesbelonging to the PolishMrówka chain, for instance,are now appearing in townswith populations of less than

30,000. “In the next fewyears, we expect an increasedinterest in DIY chains inlocations in cities in the eastof Poland,” Ms Fràtczak said.

According to Jan JakubZombirt, an analyst at theresearch and consultancydepartment of Jones LangLaSalle, the DIY market inPoland now accounts for atotal of approximately 1.8million sqm of space in 211facilities.

Mr Zombirt described themarket as mature, pointingout that DIY stores arealready present in most largeand mid-sized cities in thecountry. He said that opera-tors tend to focus on promis-ing locations in small citiesand fill niches in the largeones. Five major stores arenow under construction inPoland, he added.

AAddaamm ZZddrrooddoowwsskkii

New Osiedle

Klasyków

phase

Warsaw Stock

Exchange-listed

developer Dom

Development has

launched construction on

the third phase of its

Osiedle Klasyków

multifamily residential

project located on ul.

Klasyków in Warsaw’s

Bia∏o∏´ka district. The

newly launched phase

comprises five buildings

offering a total of 236

apartments which are

scheduled to be

completed at the end of

2013. The whole

development was

designed by the

Hermanowicz Rewski

Architekci studio and will

consist of a total of 12

buildings when

completed. Henpol is the

general contractor of the

third phase of the

investment.

Ronson starts

Poznaƒ project

Warsaw Stock

Exchange-listed

developer Ronson

Development has

launched sales of

apartments in the first

phase of its M∏ody

Grunwald multifamily

residential project in

Poznaƒ, in western

Poland. Construction on

the phase is scheduled to

launch later this month

and finish in Q2 2014. The

whole scheme is

expected to deliver a

total of 268 apartments,

while its first phase will

offer 136 units arranged

in two five-storey

buildings. ●

CO

UR

TE

SY O

F I

TB

C C

OM

MU

NIC

AT

ION

Analysts describe the Polish DIY market as stable

Rank Progress

launches work on

Chojnice mallDeveloper Rank Progress hasselected construction companyMirbud as the general contrac-tor for its Brama Pomorzaregional shopping center inChojnice, Pomorskie voivod-ship. The value of the transac-tion amounts to z∏.58 million.

The project will be built intwo phases, the first of whichwill involve the developmentof a DIY market, a shoppingarea with a grocery supermar-ket, boutiques and restaurants,and a parking lot for 1,300cars.

In the second phase of thescheme, a retail park will be

constructed. The whole invest-ment will comprise approxi-mately 34,000 sqm of space.Construction is scheduled tofinish in Q3 2013, with BramaPomorza expected to open forbusiness in the final quarter ofnext year.

Between 2001 and 2012,Rank Progress completed 25investments, including sevenof its own shopping centers –in Jelenia Góra, Legnica,Âwidnica, Kalisz, K∏odzko,ZamoÊç and Zgorzelec.

The last four of those havealready been sold.

AAddaamm ZZddrrooddoowwsskkii

Construction on

Galeria Bialska soon

to get underway

Investor Zielona Galeria hasannounced that constructionwill soon get underway on itsplanned Galeria Bialska shop-ping center project in Bia∏aPodlaska in Lubelskie voivod-ship. The scheme is scheduledto open for business in the sec-ond quarter of 2014.

Galeria Bialska will be thefirst modern shopping centerin Bia∏a Podlaska. It will deliv-er more than 25,000 sqm ofretail space and will include aTesco hypermarket, a DIYstore and over 70 stores andpoints of services.

AAddaamm ZZddrrooddoowwsskkii

CO

UR

TE

SY O

F C

BR

E

Galeria Bialska will deliver over 25,000 sqm of retail space

SEPTEMBER 10-16, 2012TTHHEE LLIISSTT18 www.wbj.pl

Corporate Services

IT Consulting CompaniesRanked by total number of consultants www.bookoflists.pl

Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was con-ducted in November 2011. Number of employees is as of October 2011. All information pertainsto the companies’ activities in Poland. Companies not responding to our survey are not listed.Footnotes: (1) Financial year: July 1 - June 30.

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typo-graphical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproducedin whole or in part without prior written permission of the publisher. Reprints are available.

Rank

Company nameAddressTel./FaxE-mailWeb page

Number ofconsultants:

Total / Polish /Foreign

Revenue from ITconsulting (z∏. mln)

Total revenue fromconsulting (z∏. mln)

Total revenue (z∏. mln)

Main activities Selected clientsTotal number of

employees /Year founded in Poland

Top local executive /Title

1

PricewaterhouseCoopers Sp. z o.o.(1)

Al. Armii Ludowej 14, 00-638 Warsaw22 523-4000/22 523-4040pwcpoland@pl.pwc.comwww.pwc.com.pl

43342112

WNDWNDWNDWND

WND188.8146.9146.7

WND453.7389.1399.7

Financial advice; strategic advice for public andprivate sector: business plans; investment

consultancy; development management andstrategy; transaction and crisis consulting;

sustainable development consulting; economicinquiry and expertise; legal, tax and audit

consulting

TP; PKN Orlen; PZU; PKO BP;PGNiG

1,7651990

Olga Grygier-SiddonsPresident

2

Ernst & Young(1)

Rondo ONZ 1, 00-124 Warsaw22 557-7000/22 557-7001ernst.young@pl.ey.comwww.ey.com.pl

394WNDWND

WND32.023.022.0

WND176.0133.7120.8

WND497.0406.1444.0

Business consulting; IT consultingPKO BP; BOÂ; PGE; Energa; Orlen;

Lotos; Poczta Polska; Agora;Cyfrowy Polsat

1,5851990

Duleep Aluwihare; Piotr Piela;Aleksander Poniewierski

Managing Partners

3

DeloitteAl. Jana Paw∏a II 19, 00-854 Warsaw22 511-0811/22 511-0813dpoland@deloittece.comwww.deloitte.com.pl

305305

-

WNDWNDWNDWND

211.0341.0335.6363.7

216.2344.6340.3371.8

Business, tax, financial consulting; auditsPZU; Frontex; Tauron; PKP Cargo;

Pekao1,1191990

Marek Metrycki; DariuszKraszewski

Managing Partners

4

Capgemini Polska Sp. z o.o.ul. Pi´kna 18, 00-541 Warsaw22 464-7000/22 464-7100office.pl@capgemini.comwww.pl.capgemini.com

265WNDWND

WNDWNDWNDWND

WNDWNDWNDWND

WND471.5392.3333.2

IT consulting; SCM; CRM; business process andefficiency management

WND4,2001996

WND

5

KPMGul. Ch∏odna 51, 00-867 Warsaw22 528-1100/22 528-1009kpmg@kpmg.plwww.kpmg.pl

1891845

10.321.013.616.5

41.866.570.772.3

230.0407.0455.0440.3

Information risk management; company efficiencyimprovement; IT system selection,

implementation and maintenance; IT system andprocess inspection

WND1,2891990

Andrzej Âcis∏owskiSenior Partner

6

SII Sp. z o.o.Al. Niepodleg∏oÊci 69, 01-214 Warsaw22 486-3737/22 486-3734informacja@pl.sii.euwww.pl.sii.eu

9090-

10.012.09.26.5

WNDWNDWNDWND

38.444.030.521.8

Software design and implementation; IT systemsintegration and maintenance; infrastructure

development and maintenance; consulting andanalysis; testing

Citi Handlowy; Gemalto; Volvo;Polkomtel; Pekao

7002006

Gregoire NitotPresident

7

Infovide-Matrix SAul. Prosta 51, 00-838 Warsaw22 440-2500/22 440-2501infovidematrix@ivmx.plwww.infovidematrix.pl

6060-

64.7151.2155.2165.2

64.7151.2155.2165.2

66.1186.8209.2213.7

Consulting services and IT solutionsDeutsche Bank; Raiffeisen Bank;

Ministry of the Interior andAdministration; Generali; PGNiG

5871991

Jan MaciejewiczPresident

8

Carrywater Group SAAl. Jerozolimskie 65/79, 00-697 Warsaw22 630-6655/22 630-6656biuro@carrywater.comwww.carrywater.com

5252-

WNDWNDWNDWND

WNDWNDWNDWND

5.510.08.78.6

Business consulting; IT consulting; projectmanagement

Grupa TP; Enea Operator; LibertyDirect; RWE; Polska Telefonia

Cyfrowa

631996

Pawe∏ BiardaPresident

9

APAX Consulting Group Sp. z o.o.Al. Ujazdowskie 41, 00-540 Warsaw22 319-5755/22 319-5758biuro@apax.plwww.apax.pl

382810

WNDWNDWNDWND

WNDWNDWNDWND

WNDWNDWNDWND

Strategic advice; restructuring; operational advice;financial advice; IT consulting; interim

management

Grupa PKP Cargo; Impel;Miasteczko Multimedialne; PolskiePorty Lotnicze; Agencja Rozwoju

Przemys∏u

402007

Dariusz BrzeziƒskiManaging Partner

10

MDDP Business Consulting (MDDPSp. z o.o. Finanse i Ksi´gowoÊç Sp.k.)ul. Ksià˝´ca 4, 00-498 Warsaw22 322-6888/22 322-6889wlodzimierz.makowski@mddp.plwww.mddp.pl

1717-

1.2WNDWNDWND

5.36.05.74.9

5.36.05.74.9

Strategy definition and implementation; costmanagement; risk management; project

management; performance and productivitymanagement; IT systems implementation

management; due diligence; advice on SOX;internal audit; restructuring; corporate advisory

Bumar; Pfizer; TVN; Polpharma; NFIEMF

222006

W∏odzimierz MakowskiPartner

11

UBIK Business Consulting Sp. z o.o.ul. Emili Plater 53, 00-113 Warsaw22 423-7060/22 211-1607info@ubikbc.plwww.ubikbc.pl

651

WNDWNDWNDWND

WNDWNDWNDWND

WNDWNDWND0.5

Business strategy; technology start-ups;innovation management; Internet/social media

advisory

Microsoft Poland; TVN; Groupon;Loyalty Partners; Allegro

72006

Krzysztof Kowalczyk President

NR

Accenture Sp. z o.o.ul. Sienna 39, 00-121 Warsaw22 464-0000/22 464-0001pl.office@accenture.comwww.accenture.pl/com

WNDWNDWND

225.7172.1215.8257.2

320.1244.1306.1364.8

322.2245.9308.9367.0

WND WNDWND1993

WND

NR

getsix Group(1)

ul. Szwedzka 5, 55-040 BielanyWroc∏awskie71 388-1300/71 388-1310office@getsix.plwww.getsix.pl

WNDWNDWND

WNDWNDWNDWND

WNDWNDWNDWND

WNDWNDWNDWND

Virtual office services; start-up support; businessplanning and modeling; accounting services;

payroll and HR; IT services; legal and tax advisoryWND

452006

Monika Martynkiewicz-Frank;Claus Frank; Roy Heynlein

Partners

NR

The Boston Consulting Group Sp. z o.o.ul. Mokotowska 1, 00-640 Warsaw22 820-3600/22 820-3636kontakt@bcg.comwww.bcg.com

WNDWNDWND

WNDWNDWNDWND

WNDWNDWNDWND

WNDWNDWNDWND

Services for companies in banking, insurance,energy and telecom sectors

WNDWND1997

Franciszek Hutten-CzapskiPartner

1st half of 2011 / 2010 / 2009 / 2008

SEPTEMBER 10-16, 2012 MMAARRKKEETTSS www.wbj.pl 19

SO

UR

CE

: W

SE

PLN-EUR

4.1

838

4.1

981

4.1

944

4

.215

7

4.1

580

4.12

75

31.0

8

03.0

9

04.0

9

05.0

9

06.0

9

07.0

94

5 PLN-USD

31.0

8

03.0

9

04.0

9

05.0

9

06.0

9

07.0

9

3

.335

3

3.33

98

3

.328

1

3.3

693

3.2

955

3.25

78

3.0

3.5 PLN-GBP

31.0

8

03.0

9

04.0

9

05.0

9

06.0

9

07.0

9

5.2

756

5.

3046

5.

2886

5

.342

4

5.2

421

5.20

33

5

6 PLN-CHF

3.4

839

3.4

958

3.4

926

3.5

096

3.4

508

3.40

71

31.0

8

03.0

9

04.0

9

05.0

9

06.0

9

07.0

93.0

3.5

4.0 PLN-RUB

31.0

8

03.0

9

04.0

9

05.0

9

06.0

9

07.0

9

0.1

027

0.1

031

0.

1035

0

.103

8

0.1

023

0.10

17

0.10

0.12 PLN-100JPY

31.0

8

03.0

9

04.0

9

05.0

9

06.0

9

07.0

9

4

.246

0

4

.262

2

4

.243

4

4.29

84

4.2

019

4.12

77

4

5

currency rates

ECB to defend

the euro

Currency report

We have not heard such astrong declaration as thatgiven by European CentralBank president MarioDraghi last week from anycentral bank representativein a long time.

During its monetary poli-cy meeting the ECB decidedto keep interest ratesunchanged but declared it isready to intervene on thebond market by buying backbonds from troubled coun-tries. The new operation isnamed Outright MonetaryTransactions and will involvebuying back short-termbonds. However, the trou-bled countries will need tomeet strong criteria in orderto get help from the ECB.

The reaction by the eurowas immediate, with theEUR/USD rebounding fromits weekly lows of just above$1.25 all the way to $1.27 on

Friday. I expect this upwardmove to end soon and thedollar to regain value in thenext couple of weeks.

The ECB’s decision alsoaffected the domestic cur-rency market, with the z∏otyexperiencing a sudden turn-around. Investors were notsurprised with the MonetaryPolicy Council leaving inter-est rates unchanged at 4.75percent. But if the economicsituation in Poland keepsdeteriorating, an interest-rate cut this year is stillinevitable.

The market has alreadydiscounted this news, so thez∏oty’s appreciation clearlyhas to be attributed to theECB’s statements. The z∏otyregained ground from lastweek’s decline and by the endof the week it had reachedz∏.4.12 against the euro andz∏.3.25 against the dollar. ●

Adam NarczewskiX-Trade Brokers DM SA

SO

UR

CE

: N

BP

Major indices

Top 5 Closing % change (week) 52-week high 52-week low

IFCAPITAL 1.65 58.65 14.97 0.45JAGO 0.11 57.14 0.37 0.05MOSTALEXP 0.50 31.58 0.98 0.35INTERSPPL 3.15 31.25 4.56 1.33MEDIATEL 1.80 19.21 2.69 1.08

WIG 42,134.93 (Sep 6 close)

Change for the week: 2.57% 52-week high: 42,408.41

Change year to Sep 6: 9.96% 52-week low: 36,549.47

Top 5 Closing % change (week) 52-week high 52-week low

POLIMEXMS 0.56 16.67 2.09 0.46LOTOS 27.35 6.42 31.90 21.30KGHM 137.90 6.40 174.30 102.40PEKAO 158.00 6.40 164.80 115.10PKNORLEN 40.40 4.34 41.68 30.33

Bottom 5 Closing % change (week) 52-week high 52-week low

MEWA 0.19 -32.14 0.50 0.18ORCOGROUP 6.52 -29.98 23.90 5.90GANT 3.61 -27.22 9.98 3.45BBIZENNFI 0.16 -23.81 0.69 0.16LIBET 2.70 -21.74 4.74 2.51

Bottom 5 Closing % change (week) 52-week high 52-week low

PBG 5.11 -10.51 94.65 4.70TVN 6.46 -8.5 15.98 6.36CYFROPOLSAT 14.00 -2.10 15.85 12.25GTC 6.30 -0.63 12.75 5.13PGE 18.14 -0.11 21.78 15.98

WIG20 2,296.88 (Sep 6 close)

Change for the week: 3.13% 52-week high: 2,414.62

Change year to Sep 6: 1.50% 52-week low: 2,035.80

mWIG40 2,235.60 (Sep 6 close)

Change for the week: 1.11% 52-week high: 2,561.94

Change year to Sep 6: 2.07% 52-week low: 2,076.52

sWIG80 9,422.72 (Sep 6 close)

Change for the week: 1.49% 52-week high: 10,536.29

Change year to Sep 6: 9.51% 52-week low: 8,218.71

NewConnect 34.50 (Sep 6 close)

Change for the week: 0.76% 52-week high: 43.83

Change year to Sep 6: -16.85% 52-week low: 33.69

WIG-Banki 6,213.59 (Sep 6 close)

Change for the week: 4.55% 52-week high: 6,237.06

Change year to Sep 6: 12.09% 52-week low: 4,944.19

DJIA13,292.00 (Sep 6 close)

2.24% (for the week)

CHANGE: 7.22%

(year to Sep 6)

52-week high: 13,338.70

52-week low: 10,404.50

NASDAQ3,135.81 (Sep 6 close)

2.86% (for the week)

CHANGE: 18.39%

(year to Sep 6)

52-week high: 3,135.81

52-week low: 2,298.89

S&P5001,432.12 (Sep 6 close)

2.33% (for the week)

CHANGE: 12.14%

(year to Sep 6)

52-week high: 1,432.12

52-week low: 1,074.77

FTSE1005,777.30 (Sep 6 close)

1.01% (for the week)

CHANGE: 1.36%

(year to Sep 6)

52-week high: 5,989.10

52-week low: 4,868.60

DAX7,167.33 (Sep 6 close)

3.94% (for the week)

CHANGE: 17.97%

(year to Sep 6)

52-week high: 7,194.33

52-week low: 4,965.80

NIKKEI2258,680.57 (Sep 6 close)

-3.38% (for the week)

CHANGE: 1.41%

(year to Sep 6)

52-week high: 10,255.20

52-week low: 8,560.11

world stock indices

09.0

8

10.0

8

13.0

8

14.0

8

16.0

8

17.0

8

20.0

8

21.0

8

22.0

8

23.0

8

24.0

8

27.0

8

28.0

8

29.0

8

30.0

8

31.0

8

03.0

9

04.0

9

05.0

9

06.0

940,000

40,600

41,200

41,800

42,400

43,00009

.08

10.0

8

13.0

8

14.0

8

16.0

8

17.0

8

20.0

8

21.0

8

22.0

8

23.0

8

24.0

8

27.0

8

28.0

8

29.0

8

30.0

8

31.0

8

03.0

9

04.0

9

05.0

9

06.0

92,200

2,240

2,280

2,320

2,360

2,400

09.0

8

10.0

8

13.0

8

14.0

8

16.0

8

17.0

8

20.0

8

21.0

8

22.0

8

23.0

8

24.0

8

27.0

8

28.0

8

29.0

8

30.0

8

31.0

8

03.0

9

04.0

9

05.0

9

06.0

92,200

2,220

2,240

2,260

2,280

2,300

09.0

8

10.0

8

13.0

8

14.0

8

16.0

8

17.0

8

20.0

8

21.0

8

22.0

8

23.0

8

24.0

8

27.0

8

28.0

8

29.0

8

30.0

8

31.0

8

03.0

9

04.0

9

05.0

9

06.0

99,200

9,260

9,320

9,380

9,440

9,500

09.0

8

10.0

8

13.0

8

14.0

8

16.0

8

17.0

8

20.0

8

21.0

8

22.0

8

23.0

8

24.0

8

27.0

8

28.0

8

29.0

8

30.0

8

31.0

8

03.0

9

04.0

9

05.0

9

06.0

933.0

33.4

33.8

34.2

34.6

35.0

09.0

8

10.0

8

13.0

8

14.0

8

16.0

8

17.0

8

20.0

8

21.0

8

22.0

8

23.0

8

24.0

8

27.0

8

28.0

8

29.0

8

30.0

8

31.0

8

03.0

9

04.0

9

05.0

9

06.0

95,900

5,980

6,060

6,140

6,220

6,300

Other indices

Cause for optimism

Stocks report

Despite the announcementof weak Chinese macroeco-nomic data, the beginning oflast week saw growth onEuropean markets that was,however, limited due to apublic holiday in the US. Thelack of US capital resulted ina low turnover on the War-saw Stock Exchange onMonday, of just z∏.420 mil-lion, and the overall WIGand the blue-chip WIG20grew by 0.38 percent and0.30 percent, respectively.

The Monday stagnationcontinued on Tuesday, large-ly due to an atmosphere ofanticipation before theplanned Thursday speech ofthe head of the EuropeanCentral Bank (ECB).WIG20 ended the day with a0.73-percent loss.

That was made up for bythe market on Wednesday,which started with slow butsteady increases on theWIG20. The announcementof unchanged Polish interestrates was received calmly but

news of planned bond pur-chases by the ECB broughtmore investor enthusiasm. Inthe end the WIG20 and theWIG gained 0.55 percentand 0.40 percent respective-ly.

The Thursday conferenceduring which ECB presidentMario Draghi confirmedspeculation concerning thebond purchasing programfurther increased optimismon the main European mar-kets.

Friday witnessed the pub-lication of worse-than-expected data on nonfarmpayroll employment in theUS which rose by just 96,000in August. However, othermacroeconomic data rele-ased on the day were morepositive and markets stillremained under the influ-ence of Mr Draghi’s speechfrom Thursday. Ultimately,the WIG and the WIG20gained 0.87 percent and 0.89percent, respectively.

AAddaamm ZZddrrooddoowwsskkii

SEPTEMBER 10-16, 2012 SSPPOORRTTSS www.wbj.pl 21

Paralympics

PPoolliisshh aatthhlleetteess sseeeePPaarraallyymmppiicc ssuucccceessssNatalia Partyka andPatryk Chojnowskiwere among thecountry’s gold medalwinners

The Polish Paralympic teameasily surpassed the medal totalof their Olympic counterpartsin London this summer, with atotal of 27 medals as WBJ wentto press, leaving them 9th in theoverall medal table. This was incomparison to just 10 medalswon by the Polish team at the2012 Olympics.

Poland’s star athlete wasonce again Natalia Partyka,who retained her Paralympictitle in the women’s table tennissingles Class 10 event. Ms Par-tyka, who also reached the thirdround of the women’s singles atthe Olympics, defeated China’sQian Yang in five sets (11-5, 11-13, 11-9, 7-11, 11-4) to claim herthird Paralympic gold to go withthe titles she won in Beijing andAthens.

Patryk Chojnowski alsoclaimed table tennis gold in themen’s singles Class 10 event.The 22-year-old teacher fromÂwidnik beat China’s defendingchampion GE Yang in straightsets, in his first ever Paralympicappearance.

Other standout performersincluded Karolina Kucharczyk,

who claimed gold in thewomen’s long jump F20 classifi-cation, and Katarzyna Piekart,who won gold in the women’sF46 javelin event. Ms Piekartalso showed her versatility as anathlete by competing in the 100and 200 meters events in theT46 class.

DDaavviidd IInngghhaamm

American football

US defeats Europe in continentalgridiron showdown

More than 25,000 fansattended the game atthe National Stadium

The US beat Europe 34-7 atthe National Stadium in War-saw in the first ever Euro-America Challenge onSeptember 1. The match,organized in conjunction withthe Warsaw Eagles and the USCollegiate Development Foot-ball League, attracted a recordcrowd for an American foot-ball game in Poland, withmore than 25,000 fans packing

into the stands.Prior to kickoff, specially

invited guest and former Pol-ish President Lech Wa∏´saperformed the opening cointoss to start the match. Andthe presence of professionalscouts, there to cast an eyeover the teams made up ofplayers from the US Colle-giate Development FootballLeague and from 10 Euro-pean countries, ensured theaction on the field was top-drawer.

The European team, led by

coach Kirk Heidelberg, includ-ed more than 20 Polish play-ers. But the Americans provedto have the stronger side, withtheir roster including matchMVP, wide receiver ClarenceAnderson.

“It was a great game, I feelhonored that I could take partin it. I played in a small collegeteam in the USA and I had theopportunity to play in such agreat stadium, in front of such alarge audience. It was a greatexperience,” Mr Anderson saidafter the game. DDaavviidd IInngghhaamm

Tennis

Radwaƒska knockedout of US OpenThe Polish number onelost in straight sets toItaly’s Roberta Vinci

Agnieszka Radwaƒska suffereda shock defeat to 20th seedRoberta Vinci in the fourthround of the US Open at Flush-ing Meadows last week.

The 23-year-old, who wasseeded second for the tourna-ment, lost 6-1, 6-4, as she wasoutplayed by her lower-rankedopponent.

After her defeat Ms Rad-waƒska admitted that the Ital-ian deserved the win. Askedhow well she thought she hadplayed, Ms Radwaƒska conced-ed, “Certainly not as well as Iplayed in the initial phase of thetournament. Vinci was better.Roberta has a very hard style ofplay. … She had the answer toall my shots.”

For Ms Vinci it marked acareer-best Grand Slam per-formance as she reached herfirst-ever major quarterfinal atthe age of 29. In the first roundshe had also defeated Ms Rad-waƒska’s younger sister, Urszu-la, 6-1, 6-1.

For the older of the twoRadwaƒska sisters defeat to Ms

Vinci was another setback, aftershe was recently knocked out inthe first round of the Olympictennis event in London in July.Ms Radwaƒska had been oneof the favorites for both the US

Open and London 2012 aftershe reached her first GrandSlam final at Wimbledon inJune, before eventually losingto five-time champion SerenaWilliams. DDaavviidd IInngghhaamm

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Agnieszka Radwaƒska

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The US proved too strong for their European opposition

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Natalia Partyka

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SEPTEMBER 10-16, 2012LLIIFFEESSTTYYLLEE22 www.wbj.pl

The movie is set in1981, just days beforethe imposition ofmartial law

Poland’s Oscar committee haschosen “80 Million” as itsentry in the best foreign lan-guage film category for the2013 Academy Awards. Thefilm, based on actual events, isset in 1981 during communist-era Poland and follows howmembers of the Solidaritytrade union attempted to

secure z∏.80 million of theorganization’s funds beforethey were frozen by authori-ties when martial law wasannounced.

The film, which is set in thesouthwestern city of Wroc∏aw,details the activists’ race againsttime to withdraw the money,which subsequently helped tofinance Solidarity’s fightagainst communism, before thecountry’s then-leader GeneralWojciech Jaruzelski launched amajor crackdown.

The film, which is directedby Waldemar Krzystek, is nowin contention to make thefinal Oscar nominations.Those will be announced onJanuary 15, 2013.

Last year, Poland’s “InDarkness,” another film basedon actual historical events (itis set during World War II),was one of five films nominat-ed for the best foreign lan-guage film award. It ultimate-ly lost out to Iran’s “A Separa-tion.” DDaavviidd IInngghhaamm

Film

‘80 Million’ is Poland’schoice for Oscars

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Lana Del ReySeptember 14, 10 pmNational TheaterPlac TeatralnyWarsaw

American singer-songwriterLana Del Rey will perform inPoland for the first time thismonth. The New York nativebecame an internet sensation in2011 when her self-producedvideo for debut single “VideoGames” went viral.

She subsequently releasedher second studio album (thefirst being released independ-ently under the name Lana DelRay a.k.a. Lizzy Grant) “Bornto Die.” The album has so farsold more than two millioncopies worldwide, while the sin-gle of the same name has more

than 62 millionviews on You-Tube.

The singer,who hasdescribed her-self as a “self-styled gangstaNancy Sina-tra,” is knownfor her retrofashion styleand uniquesinging voice.

But fans ofthe 26-year-oldmay find it diffi-cult to attend her first Polishperformance, which takes placeat a gala event in the capital,entitled “Poles with verve,” as itis an invitation-only event.

Fans need not despair.Footage of her concert will bescreened live on TVP1 at 10 pmon September 14.

DDaavviidd IInngghhaamm

Concert

Video star

Royal Cup 2012September 23, 11 amHippodrome, ¸azienki ParkWarsaw

Horse lovers and fans of refinedpursuits have something to lookforward to this month as thesecond edition of the RoyalCup 2012 takes place in thecapital’s historic ̧ azienki Park.

The event, which aims toraise the popularity of showjumping and dressage inPoland, will see riders competeover a course of fences, as wellas a performance of a quadrille,a choreographed dance per-formed to music.

One of the organizers,Karolina Wajda, said of the

event, “This is the second com-petition of the season heldunder the name Royal Cup.Our intention is to continue thisevent in the future, and we areconfident that it will be an ele-gant and unique event whichwill demonstrate the unique-ness of both ¸azienki and War-saw.” DDaavviidd IInngghhaamm

Show jumping

Sport of kings

“80 Million”

Lana Del Rey

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The future is, if you’ll excuse thecomparison, like a filthy fish tank. It isinscrutable, continually in motion, itscontents resisting divination by thelearned and ignorant alike. Strangethings lurk amidst its murky currents,unseen but in swirl and shadow, andthere are little wafty bits that could bebaby fish or food flakes or possiblypooplets.

OK, the simile falls apart a bitthere at the end. But you get the idea.The future is nebulous, with lots ofweird stuff floating in it, some good

and some bad. Nevertheless Techeyetends to be optimistic about thefuture, because that’s where newtechnology comes from.

A case in point: Apple is expectedto unveil the iPhone 5 this week.What kind of uber-technofangledgoodness is it packing? Well, Techeyedoesn’t usually prognosticate past ournext meal, but once, while campingwith friends, we nibbled the wrongkind of cactus and saw visions of anolder, sexier Techeye, with sultry lovehandles and silky back hair, wearing

an irresistible, beer-fragranced sin-glet.

That vision came pass, so we feelcomfortable making a few predic-tions about the iPhone 5. Two thingswe’ll definitely see are a larger touch-screen and a new dock connector.Possible (meaning occasionallyrumored) improvements include anew chip architecture, an upgradedbattery and new earphones, replacingthe iconic (albeit craptastic) whiteearbuds that first shipped with thegen-one iPod.

And here’s a couple of things theiPhone 5 really ought to have, butwon’t: a pretty, pretty princesssparkle mode and a misplaced-donutdetector. Glaring omissions, those.

Anyway, we’ll know what Applehas up its sleeve soon, but here’ssomething to tide us over until then:the Padcaster (Thepadcaster.com).

What is it? Several things, andpretty ain’t one of them. The Padcast-er is “an aluminum frame with a ure-thane insert that snugly holds youriPad” and transforms it “into an on-the-go production studio.” You canshoot videos, edit them using specialsoftware, then upload your master-pieces to YouTube to be mocked byan international audience. The

device can also turn an iPad into anon-set monitor, teleprompter, filmslate or a portable light source.

In short, the Padcaster lets youmake fancy movies in a fancy way.And that’s not all – would-be auteurscan also get the Lenscaster, an acces-sory that lets you attach a properSLR lens (not included) to an iPad.Please note that tablets with SLR

lenses attached look awfully silly. Anyway, the Padcaster costs $149

(or $189 when sold with the Lenscast-er attachment).

We’ve got some space left in thiscolumn, so let’s also look at theGalaxy Note II, which is not to beconfused with the Galaxy Note 10.1despite the fact that Samsung (Sam-sung.com) gave them confusinglysimilar names. No, the Galaxy NoteII is a “phablet” – a mobile phoneverging on the over-large – whichclaims kinship with the Note 10.1because both have a stylus.

Compared to its immediate pred-ecessor, the relatively popular GalaxyNote I, Samsung’s newest phoneoffers modest improvements. TheNote II has a 5.5-inch screen (up 0.2inches on the Note I) but screen reso-lution is unchanged. The battery isslightly better, you can upgrade yourstorage to 64 GB (compared to just16 GB) and there’s a 1.6 GHz quad-core Exynos processor (versus theNote I’s 1.4 GHz).

And how much does the GalaxyNote II cost? For now, that informa-tion is lost in the swirling unknowabil-ity of the future, amidst a haze ofmetaphorical fish pooplets.

Or something like that. ●

SEPTEMBER 10-16, 2012 LLAASSTT WWOORRDD www.wbj.pl 23

The future is unknowable, kind of yuckyTech Eye

Ever come up with and mercilessly over-use a terrible simile? Let us know: techeye.wbj@gmail.com

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Centre forContemporary Art atUjazdowski 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 2ul. Bia∏ostocka 9www.appendix2.com

Galeria Asymetria ul. Nowogrodzka 18awww.asymetria.eu

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

Galeria Milano Rondo Waszyngtona 2Awww.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

KatarzynaNapiórkowska Art Galleryul. Âwi´tokrzyska 32, ul. KrakowskiePrzedmieÊcie 42/44and Old Town Square19/21www.napiorkowska.pl

Królikarnia NationalGalleryul. Pu∏awska 113awww.krolikarnia.mnw.art.pl

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

Museum ofIndependenceAleja SolidarnoÊci 62www.muzeumniepodleglosci.art.pl

National Museum inWarsaw Al. Jerozolimskie 3www.mnw.art.pl

Polish National Operaat Teatr WielkiPl. Teatralny 1www.teatrwielki.pl

Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl

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

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

Simonis Galleryul. Burakowska 9www.simonisgallery.com

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

State EthnographicMuseumul. 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 RisingMuseum ul. Grzybowska 79www.1944.pl

Wilanów PalaceMuseum and WilanówPoster Museumul. St Kostki Potockiego10/16www.milanow-palac.plwww.postermuseum.pl

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

Museums, galleries and venues in Warsaw

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The Galaxy Note II

The Padcaster