VOLUME 17, NUMBER 50-51 • DEC 19, 2011 – JAN 8, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Sikorski survivesThe foreign minister brushed off a

no-confidence vote, then defended the

government’s EU policy 4

Since 1994 . Poland’s only business weekly in English

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Stormy seasWill Poland’s economy sink or swim in

the tempest that lies ahead in 2012?

Much depends on Germany12-13

Europe’s crossroadsPoland’s prime minister laid out

some stark choices for the EU

in a speech in Strasbourg 3

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A review of the biggestchanges to Polish lawin a special supplement

From the Arab Spring tothe euro crisis, WBJlooks back on 2011

How long can Poland’sbooming retail industrycontinue to power forward?

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

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

Labor Market in Focus . . . . . . . . . .7

Opinion & Analysis . . . . . . . . . . . . .8

Year in Review . . . . . . . . . . . . .10-11

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

Law in Poland . . . . . . . . . . . . .15-18

Lokale Immobilia . . . . . . . . . . .19-23

Interview . . . . . . . . . . . . . . . . . . . .24

The List . . . . . . . . . . . . . . . . . . .26-27

Markets . . . . . . . . . . . . . . . . . . . . . .28

Lifestyle . . . . . . . . . . . . . . . . . . . . .30

Last Word . . . . . . . . . . . . . . . . . . . .31

REAL ESTATELokale Immobilia

• What sectors will

prosper in 2012?

• Karolkowa

construction starts

• Hochtief’s new

Warsaw building

15-18

Tickled with tech

Techeye ends the year

with gadgets you may

want but can’t get your

hands on … yet

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In this issue

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DEC 19, 2011 – JAN 8, 2012NEWS2 www.wbj.pl

PiS march

against EU

integration

Leader of opposition party

Law and Justice (PiS)

Jaros∏aw Kaczyƒski led

thousands of people in a

march through Warsaw on

December 13, the 30th

anniversary of the

imposition of martial law

in Poland, with the aim of

highlighting displeasure

at the government’s

recent support for deeper

integration among

European states. Mr

Kaczyƒski said in a speech

that PM Donald Tusk’s

support for new EU

measures “undermines

our status as a sovereign

state, our position, our

dignity. … We can’t agree

to this. We can’t, and we

won’t.”

National

Stadium ready

In mid-December,

Poland’s new National

Stadium in Warsaw was

handed over to its

operators after being

passed fit for use by the

District Inspectorate of

Building Control.

Poland’s new Minister of

Sport Joanna Mucha said

in a speech that it was a

privilege to receive the

permit for the stadium’s

use. The stadium, which

has a capacity of 51,145,

will host the first game

of Euro 2012, when

Poland takes on Greece

on June 8.

Poland, Russia,

sign travel

agreement Polish Minister of Foreign

Affairs Rados∏aw Sikorski

signed a cross-border

travel agreement with his

Russian counterpart,

Sergey Lavrov, in Moscow

in December. The

agreement will facilitate

visa-free travel between

the Kaliningrad Oblast, in

Russia, and parts of the

Pomorskie and

Warmiƒsko-Mazurskie

voivodships, in Poland,

for inhabitants of those

areas.

PGNiG to

invest

z∏.4.8 billionPolish gas monopoly

PGNiG plans to spend

z∏.4.8 billion on

investments next year.

Some z∏.1.1 billion of this

figure will be spent on

exploration and

extraction in Poland and

abroad – including for

shale gas. ●

Ablon Group ..............................19

Aldebaran robotics ....................31

Atrium European Real Estate ..19

Avestus Real Estate ..................23

Bank Gospodarstwa Krajowego..2

Bank Millennium........................12

Bank Zachodni WBK....................5

Beltransgaz..................................8

Berg cloud..................................31

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

Carrefour....................................19

Castorama..................................23

CBRE ..........................................21

CBRE Global Investors ..............19

COVEC ........................................10

Creditanstalt ................................8

Cushman & Wakefield ..............21

Deichmann ................................19

Deloitte ........................................5

Echo Investment ........................19

EDF ............................................10

Eiffage Budownictwo Mitex ......23

Emax ............................................6

Empik Media & Fashion ..............5

Enea........................................6, 10

Energa ........................................10

Energomonta˝-Po∏udnie ..........19

Facebook ......................................2

Fitch............................................13

Getin Holding Group ....................5

Gigabyte......................................31

Globe Trade Centre....................21

GN Invest....................................21

Goodman ....................................20

HB Reavis ..................................19

Hochtief Development Poland 23

HSBC Bank Polska ....................12

Huawei..........................................6

IKEA Property Poland ................20

Jastrz´bska Spó∏ka W´glowa....10

Jones Lang LaSalle ..................19

KGHM ....................................5, 10

Lotos ......................................6, 12

Lubasa........................................19

Lukoil............................................6

Magnusson ................................15

Marvipol......................................20

McKinlay Development ..............23

Media Markt ..............................19

Meiji Yasuda Life

Insurance Company ....................5

Moody’s ......................................13

Neinver Polska ..........................21

Orlen ......................................6, 12

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

PGE ........................................6, 10

PGNiG ........................................10

PKP ............................................19

Polish State Railways ................19

Polkomtel ..................................10

Prologis ......................................21

Quadra FNX Mining ..................10

Raiffeisen Bank Poland ............23

Rank Progress ..........................20

Reas............................................20

Retail Provider ..........................19

S&P ............................................13

Schenker Logistics ....................20

Société Générale........................12

Sygnity ..........................................6

Talanx ..........................................5

Tauron ........................................10

Toys“R”Us ....................................5

TU Europa ....................................5

Unidevelopment ........................21

Unilever ......................................21

Vattenfall AB ..............................10

W.Kruk..........................................5

Warsaw Stock Exchange ......5, 10

X-Trade Brokers ........................12

X-Trade Brokers

Dom Maklerski ..........................28

The z∏oty depreciated sharplyin mid-December, reaching a30-month low against the euroon December 13. This led toan intervention by state-ownedBank Gospodarstwa Kra-jowego, as well as a verbalintervention by the NationalBank of Poland, which helpedto calm the situation slightly.

Over the last six months,the z∏oty has lost 13 percent –proving one of the least stablecurrencies in Europe. Thedownward trend has given areal headache to Poles whohold foreign-currency denomi-nated credit, and has led tofears that Poland’s publicdebt-to-GDP ratio couldexceed the important 55 per-cent threshold – since the gov-ernment holds a significantamount of debt denominatedin foreign currencies.

The recent weakness of thez∏oty has generally beenascribed to an uncertain eco-nomic outlook for the region,and for Europe at large, ratherthan to the condition of thePolish economy. As a liquidcurrency, the z∏oty is suscepti-ble to changing moods else-where in Europe and to theactivities of speculators whoaim to weaken it.

News of lower credit-rat-ings prospects for Bulgaria,the Czech Republic, Latviaand Lithuania has helped con-tribute to the z∏oty’s deprecia-tion, since investors tend toview CEE currencies as awhole, rather than separately.

Although Poland’s creditrating does not itself appear tobe under threat, with ratingsagencies reacting positively tothe government’s 2012 budget

plan, and despite its economybeing seen in a good light byanalysts, this has hardly helpedthe country’s currency. In-deed, as WBJ went to press, ithad lost more in Decemberthan currencies including theCzech koruna and the Hun-garian forint.

In an interview withTVN24, Jan Krzysztof Bielec-ki, an economic adviser to cur-rent Prime Minister DonaldTusk, noted that the z∏oty hasin general been a very stablecurrency in relation to theeuro over the last eight yearsand that its recent deprecia-tion results from the deepen-ing crisis in the euro zone.

“Personally, I think thatour currency should bestrengthening after the NewYear,” Mr Bielecki said.

Adam Zdrodowski

z∏.43 billionis the total amount of Poland’s revenues from

privatization in the last four years.

300 is how many companies the Treasury wants to

privatize in the 2012-2013 period.

6.5% was the y/y level of growth of Poland's industrial

production in October.

z∏.3.3 billion is the value of bonds issued by Polish energy provider

Tauron. The money raised will be used to finance the

purchase of GórnoÊlàski Zak∏ad Elektroenergetyczny.

“We are at a crossroads … either we take thecommunity path during this crisis ... and search

for a European way to overcome it or we takethe path of national and state egotism”

Polish Prime Minister Donald Tusk in a speech to the European Parliament inmid-December in which he set out his view of the choices facing Europe.

Quote of the Week

2011 in WBJ at a glanceAs the curtains close on 2011, let us takeyou through this year’s front page coversand check out the news that made head-lines. Log onto WBJ.pl and our Facebookpage to refresh your memory and to seewhat you may have missed.

On WBJ.pl

Numbers in the News

Company index

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8 THE GREAT ORCHESTRA OF CHRISTMAS CHARITYEvent: This event raises money for children’s chari-

ties and good causes through a series ofconcerts and other fund-raising activities.There will be volunteers collecting donationsthroughout Poland, and the day will end witha celebratory concert.Location: National Stadium, Warsaw, andvarious locations throughout Polandwosp.org.pl

12 TAXATION AND ACCOUNTING CONGRESSEvent: This event aims to deepen participants’

knowledge on recent developments in thefield of tax and accounting, as well as to cre-ate a platform for comprehensive exchangeof views on the practice of implementing theprovisions.Location: Hotel Hilton, Warsaw kpmg.com/pl

January 2012

The depreciating z∏oty

IN THE SPOTLIGHT

Figures in focusMobile businessesPercentage of enterprises with a mobile broadband connection,selected EU27 countries

Source: Eurostat

*Highest in EU27

** Lowest in EU27

DATELINE

DEC 19, 2011 – JAN 8, 2012 NEWS www.wbj.pl 3

European Union

Europe at a crossroadsPolish Prime Minister DonaldTusk said in December thatEurope was at a “crossroads” inits search for a solution to theeconomic and political crisiscurrently plaguing the bloc.

In a speech to the EuropeanParliament, Mr Tusk said, “Weare at a crossroads … either wetake the community path dur-ing this crisis, and search for aEuropean way to overcome itor we take the path of nationaland state egotism.”

Mr Tusk’s speech, in whichhe reviewed the achievementsof the Polish presidency of theCouncil of the EU, included areiteration of the Polish govern-ment’s stance that there shouldbe more, not less integration inEurope. Poland has been push-ing this message ever since ittook over the rotating sixth-month presidency in July 2011.

The PM, while never usingthe word “federation” as For-eign Minister Rados∏aw Sikors-ki had in his much-publicizedNovember 28 speech in Berlin,nevertheless made it very clearwhat Poland’s position is onhow best to approach the cur-rent crisis.

“We need a strengtheningof the community instead oflooking for ways to disinte-grate, exclude and cause divi-sions in Europe,” said Mr Tusk,adding that “these six monthshave shown with full force thatthe crisis feeds and fattens on

the vision of the communityfalling apart.”

Poland’s stance means thedecision of UK Prime MinisterDavid Cameron at the Decem-ber summit in Brussels to holdhis country out of a closer Euro-pean fiscal union was viewedwith disappointment in War-saw. However, Mr Tuskrefrained from criticizing Lon-don outright, choosing insteadto address the gleeful reactionof some to the UK’s stand-alone policy.

“When I hear comments,made with satisfaction, that Bri-tain has become an islandagain, that the English Channelhas gotten wider, I really don’tunderstand why they are saidwith such satisfaction,” the Pol-ish prime minister said.

Paying the priceMeanwhile, Poland has statedthat it intends to be a part of thenew fiscal union, and that it isready to put its money where itsmouth is.

According to the agreementreached at the early Decembersummit, members of the newfiscal union are expected to pro-vide a combined €200 billion inloans to the IMF to enable it toassist indebted euro-zone mem-bers who might need help in thefuture.

Seventy-five percent of thesum, some €150 billion, is to beprovided by members of the

euro zone, while the rest isexpected to come from EUcountries outside the zone.

Taking into considerationthat it seems highly unlikely theUK will participate in this pro-cedure – Poland, the biggesteconomy among the remainingnon-euro-zone countries,would probably have to commita significant amount.

The sum of €10 billion hasbeen suggested by some expertsin the Polish media. Mr Sikors-ki has denied that Poland’s con-tribution will be as high as that,but wasn’t able to provide analternative figure as he saiddetails of the agreement are stillbeing worked on.

Nevertheless, the decisionof the government to take partin the IMF operation hasraised controversy in Poland,with some asking why Polandshould have to pay for theexcesses of richer euro-zonecountries. The PM attemptedto defend his decision in par-liament in mid-December,saying that saving the eurozone was in Poland’s interestsand that the country’s futurewas in fact tied directly to thefuture of the EU.

“The strength of the Polisheconomy is dependent on thestability of the euro zone,” saidthe PM, adding that the eventu-al loan would be financed fromthe National Bank of Polandreserves, from “funds whichcannot be used to finance thenational budget.”

Unsurprisingly, he failed toconvince the largest oppositionparty, Law and Justice (PiS).

Anna Fotyga, a former for-eign minister and current PiSMP, stated that according to EUlaw, central banks are not per-mitted to give money to govern-ments. “Lending money to theIMF, as the prime minister callsit, is nothing but giving money toItaly and Greece,” she said.

EU-Ukraine summitdiminished hopesThe final event of significancewhich, as WBJ went to press,

was due to take place duringthe Polish presidency, was anEU-Ukraine summit, sched-uled for December 19 in Kiev.The signing of a free-tradeagreement between the EUand Poland’s Eastern neigh-bor was one of the prioritiesset by the Polish governmentfor its presidency, but thearrest and imprisonment offormer Ukrainian Prime Min-ister Yulia Tymoshenko hassoured relations between

Kiev and Brussels. As of press time, it seemed

highly unlikely that the FTAwould be inked in Ukraine,although on December 16 MrSikorski still expressed opti-mism that the agreementwould be signed “during thePolish presidency.”

Denmark will take overthe rotating presidency onJanuary 1, at the conclusionof Poland’s six-month term.

Remi Adekoya

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Mr Tusk wants a strengthening of the EU community

HAPPY HOLIDAYS

May the magic of the holidays fill your hearts with joy and may all your dreams for 2012 come true.To all of our partners and readers we wish a Merry Christmas and a Happy New Year!

HAPPY HOLIDAYS

May the magic of the holidays fill your hearts with joy and may all your dreams for 2012 come true.To all of our partners and readers we wish a Merry Christmas and a Happy New Year!

Polish presidency dominated by crisis,

but earns praise anyway

Although the Lisbon Treaty significantlyreduced the role of the EU’s rotating presi-dency, it is still usually an opportunity for theholding member state to enjoy the limelightfor six months, preside over meetings of min-isters and, if fortunate enough, maybe evensign a few important agreements.

But Poland’s presidency has been over-shadowed by the euro-zone crisis, with Ger-man Chancellor Angela Merkel and Frenchpresident Nicolas Sarkozy making the keydecisions and therefore commanding themost attention.

Prime Minister Donald Tusk’s govern-ment, meanwhile, focused on making surePoland, and the 10 other EU countries not inthe euro zone, were not completely marginal-ized.

The fact that Poland and the nine othernon-euro countries were invited to join theproposed fiscal union is testament to the gov-ernment’s success in this matter. And this isPoland’s biggest achievement in the six-month period.

But there were some other bright spotstoo.

The presidency oversaw the adoption of apackage of measures for increased fiscal dis-cipline, the so-called six-pack, as well as the

signing of an accession treaty with Croatia. When Mr Tusk addressed MEPs in the

European Parliament on December 14 sum-marizing the presidency, he received lavishpraise for Poland’s efforts.

“The Polish presidency was without adoubt one of the very best presidencies wehave had,” said Martin Schultz, the GermanMEP who will become president of the leg-islative body come January 17.

European Commission President JoséManuel Barroso, meanwhile said that“Poland demonstrated extraordinary capaci-ty during probably the most difficult periodsince European integration started.”

One of the main worries – at least inPoland – at the beginning of the presidencyhad been whether the country’s civil servantswould cope with the logistics involved in hold-ing the hundreds of meetings scheduled forthe six-month period. But according to allaccounts, Poland passed this test with flyingcolors.

As Jerzy Buzek, a Pole and the outgoingpresident of the EP said, “Poland has shownthat it is not a country which has constantproblems with it’s neighbours or a countrythat is badly organized.”

Remi Adekoya

The EU can either stand together as a communityor follow the road of “national and state egotism,”Poland’s prime minister said in a speech to theEuropean Parliament

DEC 19, 2011 – JAN 8, 2012NEWS4 www.wbj.pl

Put an end to ‘theatrics,’

deputy PM tells the EU

Deputy Prime Minister Walde-mar Pawlak said in Decemberthat European leaders shouldput an end to “theatrics” andavoid using “brute force” intheir plans to create a closerfiscal union to head off theeuro-zone debt crisis.

“Theatrics won’t help us,and EU summits won’t save theeuro,” said Mr Pawlak, whoblamed ratings agencies for thecrisis.

Mr Pawlak, who is alsoPoland’s economy minister,made the comments during aDecember interview withBloomberg.

“The mechanisms of closerfiscal integration need to beapplied with imagination andnot brute force,” he added,saying their implementationshould not come at the cost of

economic growth. Mr Pawlak said he expects

the Polish economy to grow 4percent next year, as a weakz∏oty drives exports. The Pol-ish government’s official fore-cast for 2012 sees GDP growthof 2.5 percent.

The outlook for Poland’spublic finances brightened inDecember on news that thebudget deficit after Novemberstood at z∏.21.6 billion, or 53percent of this year’s plannedlimit.

“This is mostly a result ofmuch less budgetary spending.We have spent z∏.10 billion lessthan we had planned at thebeginning of the year,” HannaMajszczyk, deputy minister offinance, told reporters.

Gareth Price, Remi Adekoya

After surviving a no-confidence vote, ForeignMinister Rados∏awSikorski had to explainPoland’s Europe policyto a parliamentarycommission

After surviving a no-confidencevote in the Sejm on December16, Foreign Minister Rados∏awSikorski was grilled by the Parlia-mentary Commission for Euro-pean Union Affairs regardinghis controversial “federation”speech in Berlin and the pro-posed fiscal union in whichPoland wants to participate.

MPs from the oppositionLaw and Justice (PiS) party hadfiled a motion of no confidenceagainst Mr Sikorski followinghis speech in Berlin, where hecalled for the creation of aEuropean federation under theleadership of Germany, sayingthat he “feared German powerless than German inactivity.”

PiS politicians blasted MrSikorski for the speech sayinghe wanted a “Fourth Reich”and that he was giving upPoland’s sovereignty. In orderfor the no-confidence vote to

have passed, a simple majorityof 231 votes was required. Inthe end, however, only 152 MPssupported the motion.

After the vote, Mr Sikorskitold the press that in his Berlinspeech he was only “expandingon what [the late] PresidentLech Kaczyƒski had said in2006 [in a speech also made inBerlin].” The late president wasa PiS co-founder.

Mr Sikorski’s statements

drew the fury of PiS politicians,with former Foreign MinisterAnna Fotyga saying Mr Sikors-ki was telling “lies,” and thatPresident Kaczyƒski had neverproposed a European federa-tion.

Mr Sikorski then facedquestions from the Parliamen-tary Commission for EuropeanUnion Affairs regarding theoutcome of the December EUsummit, where a fiscal union

was proposed. The minister denied reports

circulating in the media thatPoland would have to lendroughly €10 billion to the IMFas its stake in the €200 billion infunds which the internationalinstitution is expected to receiveto help it support euro mem-bers in trouble.

“The figure will be muchlower,” said Mr Sikorski, butwas unable to provide an alter-native figure as he said thedetails of the plan are still beingworked out.

Mr Sikorski defended thegovernment’s decision to jointhe union, saying the mostimportant issue for Poland isthat the EU avoided breakingup into euro-zone countries and“the others.”

“The fact that during the lastEU summit we could notachieve unanimity does not fillone with too much optimism.However, the UK’s isolationshould not lead to further divi-sion within the Union,” MrSikorski said, adding that thefiscal union is “a first steptowards building a system foreuro-zone management.”

Izabela Depczyk

Politics

FM Sikorski defendsgovernment’s EU policy

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Mr Pawlak blamed ratings agencies for the crisis

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Mr Sikorski had much explaining to do in mid-December

DEC 19, 2011 – JAN 8, 2012 BUSINESS www.wbj.pl 5

Another almightyseasonal spendingsplurge is expected,but beware thehangover

Polish consumers have madesomething of a name forthemselves in recent yearsafter helping buoy Polandthrough a financial crisisthat gutted retail sectors inmore developed economies– and they didn’t look set totarnish that hard-won repu-tation in the run-up toChristmas 2011.

According to a report onChristmas spending byDeloitte, consumers in Polandbudgeted 4 percent more ontheir 2011 holiday spendingthan they had a year earlier –when the average family setaside z∏.1,800. Some 41 per-cent of the total is planned tobe spent on gifts.

The growth is impressivewhen compared to that of theeight other major Europeancountries surveyed. Europeanconsumers budgeted, on aver-age, €587 (z∏.2,675.44) for the2011 Christmas season – adrop of 0.51 percent on 2010,due to the continuing euro-zone crisis.

Nevertheless, annualizedgrowth in Poland is less eye-catching than it was in 2010,when Poles budgeted 18.7 per-cent more than they had in theprevious year. However, thiscooling off shouldn’t be attrib-uted to the crisis in Europe.

Tax incentiveSpending grew significantlyyear-on-year in the run-up toChristmas 2010 as consumersrushed to stock-up on goodsahead of a VAT hike that cameinto force in January 2011. Forthis reason, retail sales growth

in December 2011, economistssay, won’t match the actual 12percent y/y increase recordeda year earlier.

“Artificially high sales in2010 mean we are expectingDecember retail sales to slowdown – we might see 5 percenty/y growth instead of the above10 percent we’ve witnessed inthe last few months,” saidPiotr Bielski, an economist atBank Zachodni WBK.

Floodgates openMost retailers that WBJ spokewith reported a strong start toseasonal trading, although asof press time the traditionallybusiest periods still lay ahead.

“For the moment we cansay ‘so far so good’ – we havemany clients in the group’sstores as well as in our onlinebusiness,” said MagdalenaZajàc, a spokesperson forEmpik Media & Fashion(EM&F).

Asked by Deloitte aboutthe types of gifts they plannedto buy for friends and family(excluding children andteenagers) for Christmas2011, 61 percent of surveyedPoles said they would pur-chase cosmetics and pur-fumes, making this categorythe most popular.

Next up was the jewelryand watches category (32 per-cent), which rose three placefrom 2010.

“This year, we have defi-nitely seen a rise in demand,more people are buying jewel-ry as Christmas gifts,” said

Katarzyna Sosiƒska, PR man-ager at W.Kruk, a Polish jewel-er.

Meanwhile, clothing andfootwear, while still a populargift category, slipped in popu-larity by two places from 2010to 2011.

“Obviously, in parallel withwhat is observed on interna-tional markets, the fashiondivision is a weaker link, sincein times of crisis consumersare more cautious whilespending money on fashion,”EM&F’s Magdalena Zajàcsaid.

However, the company ishoping that plans to expand itsGap franchise will help reviveits fashion arm, with the suc-cess of the first store – openedin October 2011 – having posi-tively surprised the companythus far.

“The first Gap store inWarsaw’s Arcadia mall is con-tinuously doing very well. Thesales are higher than plannedin our budget and the conver-sion rate also exceeds expecta-tions,” said Ms Zajàc.

Children’s retailer Toys-“R”Us also opened its firststore in Poland recently – atthe end of November, in War-saw, just in time for theChristmas season.

“We are very satisfiedwith the number of cus-tomers that have visited ourstore in Blue City so far.We’ve got very positive feed-back from all sides. Thelicense themes (e.g. StarWars) and hot products (e.g.

Sony PSP) in Warsaw aresimilar [in popularity] toother countries, which showsthat the world is getting clos-er together,” said WojciechCzernek, managing directorof Toys“R”Us in Poland.

The hangoverWhile Poles may be happy tolet go a little for Christmas,crisis-related worries arebeginning to mount. The totalsum of positive and negativeresponses to a Deloitte ques-tion concerning Poles’ per-spectives for the economyshowed that the outlook was11 percentage points lower (at

-33 percent) in the lead-up toChristmas 2011 than the -22percent recorded a year earli-er.

But the post-Christmashangover is not expected to befelt right away: strong retailsales are forecast for January2012, due to the high baseeffect from the 2011 VAT hike.Then, however, consumer cau-

tion is expected to increase aseconomic slowdown strikes.

“From an average monthlygrowth rate of around 6 per-cent in Q1, we expect averagegrowth of 3 percent by thefinal quarter of 2012. Con-sumers will become far morecautious due to the crisis,” saidBZ WBK’s Piotr Bielski.

Gareth Price

Christmas retail spending

‘Tis the season to retail

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Online shopping – more popular in Poland

According to Deloitte, 16 percent of Poles planned to maketheir seasonal purchases online in 2011, compared to anaverage of 13 percent in Europe, while some 48 percentsaid they would buy via a combination of online and in-store, compared to 35 percent in Europe.

All I want (to give) for Christmas

Top 10 2011 Top 10 2010

1. Cosmetics/perfumes (61%) 1.Cosmetics/perfumes (67%)2. Jewelry/watches (32%) 2. Confectionery (53%)3. Books (31%) 3. Books (50%)4. Pharmaceuticals (28%) 4. Clothing/footwear (37%)5. Chocolate (26%) 5. Jewelry/watches (35%)6. Clothes/shoes (26%) 6. Money (22%)7. CDs (25%) 7. Music (CD, MP3) (18%)8. Personal care products and treatments (25%) 8. Sports accessories & clothing (17%)9. Accessories (24%) 9. Films (DVD, Blu-ray) (14%)10. Money (24%) 10. Food/drink (13%)

What kind of gifts did Poles say they planned to give to friends and family in 2011(excluding children and teenagers)?

Source: Deloitte's Christmas Survey 2011

May the Christmas seasonFill your home with joyYour heart with loveAnd your life with laughter

KGHM share price plunges to 15-month lowThe share price of Polish cop-per giant KGHM fell to a 15-month low after the govern-ment revealed a draft inDecember detailing its plansto tax copper and silver pro-ducers.

If such a tax was in place in2011, KGHM would have hadto pay z∏.2.8 billion to the statecoffers, or one-third of itsprofit, Polish daily Rzecz-pospolita wrote.

The copper miner, which is

listed on the Warsaw StockExchange, saw its share pricefall 7 percent to z∏.112 afterthe publication of the draftbudget, its lowest intradaylevel since September 10, 2010.

DI

Getin agrees to sell TU Europa for z∏.912 millionGerman insurer Talanx andJapanese Meiji Yasuda LifeInsurance Company will joint-ly buy a controlling stake (50percent plus one share) in TUEuropa, the insurance busi-ness of Polish financial-servic-es company Getin Holding

Group. The cost of the transaction

is z∏.912 million, with the dealexpected to be finalized in thesecond quarter of 2012.

Getin will keep hold of a16.5 percent stake in TUEuropa. The new owners are

planning to withdraw theinsurer from the Warsaw StockExchange.

Meiji Yasuda Life isJapan’s third-biggest privatelife insurer, while Talanx isGermany’s third-biggest insur-er overall. GP

with utilities such as PGE andEnea, and works in sectors suchas telecommunications, retailand oil, with companies includ-ing Orlen, Lotos, and Lukoil.

When asked about thecompany’s vision for the nextfive years, Mr Biedrzycki saidthat he saw the biggest oppor-tunity for growth in expandingabroad.

Currently, approximately97-98 percent of Sygnity’s serv-ices are used by Polish compa-nies, and the remainder by for-eign firms from countries thatinclude Lithuania and Slo-vakia.

“The strategy going for-ward, we figured out, is that weneed to go abroad with ourproducts in order to expandand in order to basically cap-ture the growth and capturethe markets geographically.Recently, we signed a three-year contract with Huawei, thebiggest [China-based] telecominfrastructure producer, andbased on this contract we’regoing to launch sales of oursolutions abroad to 16 coun-tries in Europe, including Aus-tria, Hungary, Romania, Nor-

way, Sweden,” Mr Biedrzyckisaid, adding that “we want tobe a European company.”

Asked about potentialjoint ventures and mergers,Mr Biedrzycki said the com-pany had been in discussionswith four potential acquisitiontargets.

These would involve twonew sectors. “So far, suchplans have been shelved due tomarket instability but negotia-tions may resume in the sec-ond half of 2012 if marketsbecome stable enough,” MrBiedrzycki said.

When asked how Sygnityplans to remain innovative inthe face of changing trendsand technology, Mr Biedrzyckisaid that the company hasestablished an innovation pro-gram that aims to involveeveryone in its development,not just managers. “We wanteveryone to participate inproject development,” he said.

Ella Pa∏ka

DEC 19, 2011 – JAN 8, 2012BUSINESS6 www.wbj.pl

Contact: Miros∏aw Stefanik

ms@pnplaw.pl

Legal News

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Ministry of Justice printoutsgain same status as officialdocumentsIn connection with an amendment to theAct on the National Court Register on Jan-uary 1, 2012 computer printouts from thewebsite of the Ministry of Justice (whichare and will remain free of charge) con-cerning information on entities enteredinto the National Court Register, will havethe same power as official documents.

The printouts should be legible so thattheir contents can be verified with the dataas included in the register. The registerconsists of the entrepreneurs’ register, theregister of associations and other socialand professional organizations, founda-tions and independent public health insti-tutions as well as the register of insolventdebtors. This amendment will make it eas-ier for entrepreneurs to conduct day-to-dayeconomic activity, since a printout from thewebsite will be viewed as being equal toan officially certified paper.

Amendments to legal regula-tions concerning assemblies On December 1, 2011 a draft of changesto the Law on Associations was passed inits first reading in the Sejm, the lowerhouse of the Polish parliament. The newlaw stipulates the obligation to inform amunicipal authority about participation inassemblies of persons whose identifica-tion is not possible due to their clothing,the hiding of their face or a change in theirappearance.

The purpose of these changes is toeliminate from assemblies those personswho cannot be identified, in order toensure public order and safety of third per-sons and property. The draft of the act

stipulates one exception to this rule. Per-sons who cannot be identified will be ableto take part in assemblies in specificcases, such as assemblies whose pur-pose is to protect employees’ rights,express objections against the activity ofpublic figures and to support the protec-tion of animals.

New act on population registerAs WBJ went to press, the Act on Popula-tion Register was set to come into forceon January 1, 2012. Pursuant to the act,any foreigner who is an EU citizen, a citi-zen of a member country of the EuropeanFree Trade Agreement (EFTA) or a citizenof Switzerland staying within the Polishterritory is obliged to register his/her placeof permanent or temporary residencewithin 30 days from their date of arrival.Other foreigners staying on Polish territorywill be obliged to register no later thanfour days after their arrival. Foreigners willbe released from the registration obliga-tion if their stay in Poland does not exceed14 days.

Any foreigner who is not a citizen of anEU member state, a citizen of a membercountry of the EFTA, or a citizen ofSwitzerland, who does not fulfill the rele-vant registration obligation, will be subjectto a penalty fee. This fee will not be appli-cable for other foreigners (e.g. Those fromthe EU).

Registration of the place of residenceof foreigners is performed by the authorityof the municipality in which the foreignerresides. Pursuant to this act, from January1, 2014 registers of inhabitants and regis-ters of residence of foreigners will be can-celed. ●

IT solutions

Sygnity changing direction, turns consultant

Following an unsuccessfulmerger with tech firm Emaxfour years ago, Polish IT compa-ny Sygnity saw significant losses(of over z∏.100 million in 2009),which led it to implement a newbusiness strategy. Previously,the company focused on thesale of IT products, but it nowplans to provide more compre-hensive IT business solutions forfirms of all sizes.

The company also intro-duced a cost-cutting andrestructuring “shock therapy”program, initiated by its presi-dent, Norbert Biedrzycki –who was hired about a yearand a half ago. As a result ofthe changes, 900 jobs wereslashed, five Sygnity officesshuttered, and almost theentire management boardreplaced.

Extended servicesThe implementation of MrBiedrzycki’s vision for Sygnitywill see the company extendits services by partnering moreclosely with its clients’ busi-nesses.

“This is a dramatic change

because we are shifting frombeing an IT software vendor tobecoming a partner who iswilling to resolve all of theirbusiness problems using ITsolutions,” Mr Biedrzycki said.

In addition to changing itsrelationship with clients, MrBiedrzycki said that another ofSygnity’s goals is to broaden itsmarket.

“There’s a huge market forsmall- to medium-sized enter-prises, even micro enterprises,and we are preparing newservices and products that weare going to launch with ournew marketing campaign inJanuary,” he said.

The company plans toappeal to smaller firms byintroducing pricing modelsthat “everyone will be able toafford,” Mr Biedrzycki added.Sygnity also hopes to promoteits long-term vision by way ofits re-branding exercise.

Expansion plansCurrently, the company focus-es most of its energies on threemajor sectors: the public sec-tor, banking and financing,

and utilities. “Right now weare organized by the client, bythe industry sectors, with thepublic sector bringing in 40percent of our revenues andprofit,” said Mr Biedrzycki.

The company has tradition-ally worked with large institu-tions, including most of themajor banks in Poland, as wellas the Ministry of ForeignAffairs, the National Bank ofPoland and the Ministry ofFinance. It has also cooperated

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Mr Biedrzycki wants to expand Sygnity’s business to

16 countries

The IT provider is making the transition fromsoftware vendor to IT business consultant,Norbert Biedrzycki, the company’s president,told WBJ

DEC 19, 2011 – JAN 8, 2012 www.wbj.pl 7

May your world be filled with warmth andgood cheer this Christmas / holiday season,

and throughout the year.

LABOR MARKET IN FOCUS

Gender equality

Keeping women in the workforceIncreasing femaleparticipation in labormarkets would benefitPoland’s economy,according to seniorWorld Bank economistCarolina Sanchez-Paramo

Polish women’s health, educa-tion and labor participation lev-els are on par with the EUaverage, Carolina Sanchez-Paramo, a World Bank senioreconomist who was in Warsawrecently to present the WorldBank’s 2012 report on genderequality and development, toldWBJ in an interview.

But there is a catch: as withother women in the region,Polish women tend to have amore interrupted career – ifthey choose to work at all – andoften retire earlier than men.For example, only 23 percentof Polish women aged 55-64are currently employed. That is20 percentage points lowerthan in the EU15.

One consequence of this isthat female entitlements interms of pensions are signifi-cantly lower than those of men.But it also has a cost for thewhole of society, as lower

employment levels translateinto lower output and income.In view of the projected Polishdemographic decline, this is setto become a pressing issue inthe future.

“Unlike with equal access toeducation and health, whichcan be considered as rights, webelieve there is a strong ele-ment of choice in women’s par-ticipation in the labor market.But we also argue that with anincreasingly educated work-force, the fact that manywomen are not in the marketdefinitely has a cost in terms ofproductivity growth and eventu-ally income growth. Higherequality makes countries richerand more competitive,” said MsSanchez-Paramo.

Natural changesRaising the retirement age forwomen from 60 to 67 by 2040, ameasure that was recentlyannounced by Prime MinisterDonald Tusk, is likely toencourage women to staylonger in the labor market.

As fertility rates decline andurban migration and educationlevels increase, it is expectedthat there will be a naturaltrend towards Polish womenstaying in the labor market

longer. Recent studies by theWorld Bank show that mostPolish women who are inactivebefore reaching retirement agehave less than a high schooleducation and are living in vil-lages and small towns.

The fact that between 1991and 2009 enrollment in terti-ary eduction among youngwomen went up from just 25percent to 84 percent (com-pared to 19 percent and 59percent for men, respectively)is encouraging.

The changing nature of joboffers should also give a push tofemale participation in thelabor market. “As jobs movefrom manufacturing to service... and are increasingly driven bytechnology, they become moreamenable to women,” said MsSanchez-Paramo. The growingavailability of jobs in the infor-mation and communicationstechnology sector in particularhas had a positive impact onemployment opportunity forwomen, she added.

Action neededThese trends will converge,leading to some increase infemale participation in thelabor market even despite theabsence of particular govern-

ment policies, said Ms Sanchez-Paramo. But some things won’tchange unless they are specifi-cally targeted by governments.One of those is housework andcare work, which disproportion-ately falls on women all aroundthe world.

“It is interesting how littlethis changes with developmentand income. In this respectFrance, Mexico and Ghanalook pretty much the same.Women have therefore lesstime to participate in the econ-omy,” said Ms Sanchez-Paramo.

One of the remedies isaffordable, high-qualitychildcare. In Poland, as in therest of the region, the post-communist transitionbrought a significant down-size in childcare coverage. Inthe region, it is now muchsmaller than in western EUcountries. Although the Pol-ish government is aware ofthese issues and is workingon implementing policiesaimed at creating more flexi-ble options for early child-care, as well as increasingpre-school enrollment, thishas taken its toll on femalelabor participation, said MsSanchez-Paramo.

According to the WorldBank, care-taking and home-making activities are the pre-vailing reason for inactivityamong Polish women under 50.“The world over, in theabsence of childcare, womencope by staying at home orsomebody else does,” said MsSanchez-Paramo. While inmany countries this responsi-bility often falls on older sib-lings, in Poland the typical care-taker is the young grandmoth-er.

“The idea is to give –through policy – everybody inthe household the choice to

engage in economic activity ifthey so desire.”

But as the world economyslows down, how can the Polishgovernment reconcile betterchildcare policies and a tighterbudget?

There is no miracle answer,and each country will have toexperiment to find the rightmix of services, admitted MsSanchez-Paramo.

“But when they are in place,the evidence is conclusive thatwomen have better access toformal jobs. It will boil down toa matter of policy priorities.”

Alice Trudelle

0

20

40

60

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Women

Men

ServicesIndustryAgriculture

Women at workEmployment activity sectors, as a percentage of Polish male and female employment, 2006-2009

Source: World Bank

Przeprowadzamy si´

Uprzejmie informujemy Paƒstwa, ˝e od 19 grudnia 2011r. nasza siedziba mieÊciç si´ b´dziew biurowcu "Mokotowska Square" w Warszawie.

Wir ziehen um

Wir freuen uns lhnen mitzuteilen, dass sich unser Büro ab dem 19. Dezember 2011im "Mokotowska Square" in Warschau befindet.

We are moving

We are pleased to announce that as of 19 December 2011 we will be operatingfrom new premises located at the "Mokotowska Square" office building in Warsaw.

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MOKOTOWSKA SQUARE, UL. MOKOTOWSKA 4900-542 WARSZAWA

TEL. +48 22 378 89 00, FAX +48 22 378 89 01

WWW.BBLAW.COM

The ECB fear factor

DEC 19, 2011 – JAN 8, 20128 www.wbj.pl OPINION & ANALYSIS

Philippe Legrain

Panic is beginning to overwhelmthe euro zone, with both Italyand Spain caught in the mael-

strom and Belgium also slipping intothe danger zone. As France is alsodragged down, the widening gapbetween its bond yields and Ger-many’s is severely testing a politicalpartnership that has driven sixdecades of European integration.

Even strong swimmers such asFinland and the Netherlands arestraining against the undertow. Banksare struggling to stay afloat – theircapital providing little buoyancy asfunds drain away – while businessesthat rely on credit are in trouble too.And as a result all signs point to aeuro zone recession.

Left unchecked, this panic aboutsovereign solvency will prove self-ful-filling. Just as a healthy bank can failif it suffers a run, even the most cred-itworthy government is at risk if themarket refuses to refinance its debt.One can scarcely bear imagining theconsequences: cascading bank andsovereign defaults, a devastatingdepression, the collapse of the euro(and perhaps even that of the Euro-pean Union), global contagion, andpotentially tragic political turmoil. Sowhy aren’t policymakers doing what-ever it takes to avoid catastrophe?

Crisis interventionEver since Italian bond yields firstspiked in early August, I havebelieved that only an open-endedcommitment by the European Cen-tral Bank to keep solvent govern-ments’ bond yields at sustainablerates could calm the panic and createthe breathing space needed to imple-ment confidence-boosting reforms.Everything that has happened sincethen has only confirmed this view.

Now that the crisis has reachedthe “core” of the euro zone, theresources needed to backstop weakersovereign states is exceeding the lim-ited fiscal capacity of stronger ones.Financial wizardry cannot disguisethat, while throwing a bigger lifelinerisks dragging everyone down. Pilingeveryone on to the same life raft –through euro bonds backed by jointand several guarantees – is not legal-ly feasible for now, and would bepolitically toxic if attempted prema-turely. Nor can a systemic crisis beresolved by individual governments’actions – not least because the panicis outpacing politicians’ ability torespond. Only the ECB has theunlimited wherewithal to saveEurope from the abyss now.

The ECB has a strong rationale toact: to ensure the smooth transmis-

sion of monetary policy, to prevent adepression that would lead to defla-tion, and to avoid the breakup of theeuro. Yet it has so far refused to doso, hiding behind a legal fig leaf.

Granted, Article 123 of the LisbonTreaty prohibits the ECB from pur-chasing bonds directly from publicbodies, but intervening in the second-ary market is permitted. The ECBhas long been doing so through itsSecurities Market Program. Andwhere in the treaty does it say thatextending the SMP is prohibited?Indeed, a credible open-ended com-mitment to contain interest-ratespreads would actually require fewerpurchases than the ECB’s currentlimited and temporary program does.

History repeating itself?Unfortunately, many Germans,notably at the Bundesbank, loathethe idea of central-bank intervention,because it conjures up memories of1923, when the Reichsbank printedmoney to fund government borrow-ing, the resulting hyperinflationdestroyed middle-class savings, and adecade later Adolf Hitler came topower. Yet Germans ought toremember that it was in fact thefinancial panic provoked by the col-lapse of the Austrian bank Credi-

tanstalt, the resulting slump, and mis-judgment by the German politicalestablishment that cleared the Nazis’route to power.

Far from precluding action, histo-ry justifies it. Besides, there is no rea-son to panic about inflation whenmonetary growth is low, bank creditis contracting, and people are hoard-ing money rather than spending it.Moreover, any ECB purchases couldcontinue to be sterilized.

Easing the pressure?Another objection is that ECB inter-vention would ease the pressure onthe new governments in Italy andSpain to reform. Yet, as it is, reform-ers have no time to establish theircredentials, and if the euro zone col-lapses, the door will be open to pop-ulist extremists. So why doesn’t theECB strike a bargain with solventgovernments to keep rates down aslong as they stick to their reform pro-grams?

Euro-zone leaders could also setout a road map towards euro bonds,subject to strict conditionality, andtied to a credible mechanism forensuring fiscal prudence. This wouldprovide an additional incentive forgovernments that wish to qualify tointroduce the necessary reforms,

while reassuring the ECB and mar-kets that governments remain com-mitted to making the euro work.

Exceptional times demand excep-tional measures – and I believe thatthe ECB will feel obliged to act if theeuro zone is pushed to the brink. Butthe longer the ECB delays, thegreater the hit to people’s jobs andsavings, the deeper the enduring

damage to investors’ confidence inthe euro zone financial system, andthe bigger the risk of a catastrophicmishap. The time to act is now. ●

Philippe Legrain is an independenteconomic adviser to

the European Commission.Copyright: Project

Syndicate, 2011. project-syndicate.org

One year after the December 19protests that followed thepresidential election in

Belarus were suppressed, the countryhas become a very different place.Any optimism associated with the rel-

atively liberal 2010 presidential cam-paign disappeared when the demon-strators were driven from Minsk’sLenin Square.

Since then, jail sentences havebeen given to almost all of PresidentAleksander Lukashenko’s opponents(opposition leaders Andrei Sannikauand Mikalay Statkevich are currently

in penal colonies) and those whoprotested in so-called “silent march-es” or against rising gasoline prices(the “STOP-benzin” action) havefaced repression.

For Belarusian authorities, thepost-election year was particularlydifficult, both in the internal arena aswell as with regard to foreign policy.The implementation of pre-electionpromises to approximate the averageBelarusian salary to $500 intensifiedthe growing crisis. Forced to fulfill itselection promises, the governmentdecided to print money, which startedan inflationary spiral. Between Jan-uary and November of 2011, inflationexceeded 100 percent, and it is esti-mated that by the end of the year itwill exceed 120 percent.

Financial woesIn addition, necessary reforms relat-ed to the country’s financial systemwere shelved. For example, in 2010Belarusian authorities decided not todevalue the ruble by 20 percent assuggested by the IMF, which caused a

huge crisis in the currency market in2011. Belarusians who wanted toexchange rubles for foreign curren-cies quickly faced shortages at theexchanges and long queues formedbetween January and May. However,the National Bank of Belarus (NBB)could not intervene because it had lit-tle in its foreign reserves.

The ruble’s devaluation at the endof May, when its value was reducedby 56 percent against a basket ofother currencies, deepened the prob-lems in the currency market. At thesame time, fixed currency exchangerates were introduced (the offeredrates could not differ by more than 2percent from the official one), whichresulted in shortages of currency onthe interbank market. This situationlasted until October when the NBBeventually freed the price of theruble. Finally, during the last year theruble lost almost 300 percent of itsvalue.

The devaluation of the Belarusiancurrency and high inflation severelyaffected Belarusian society and has

led to disgruntlement among thepopulation, although evidence of apotential revolution cannot beobserved. This is primarily out of fearof repression but also because of thelack of alternatives to the currentgovernment, as the opposition is notrecognized by authorities.

Russian dependenceThe events of December 2010 alsoresulted in changes to the country’sforeign policy. The dispersal of thepost-election demonstrations wastantamount to the end of the “thaw”in relations between Minsk and Brus-sels that had been seen since 2008.President Lukashenko has since fall-en into ever greater dependence onRussia. Initially, it seemed that Rus-sia did not want to help its fraternalrepublic – the Kremlin refused togive Belarus a stabilization loan andthe Russian Finance Minister criti-cized Belarusian authorities for thelack of economic reforms.

This situation changed at the endof 2011 when, in exchange for Russ-

ian support for projects of economicintegration – the Common EconomicSpace and the Eurasian Union – Rus-sia decided to support Belarus finan-cially.

Russia’s gas giant Gazprombought 50 percent of Belarusian gasnetwork operator Beltransgaz for$2.5 billion. Additionally, from 2012-2014, Belarus will receive significantdiscounts on gas prices, which willallow it to save approximately $2.5billion annually starting from 2012.

However, the coming years willremain particularly difficult. In 2013-2014, Belarus will have to return atotal of $6 billion to foreign creditors.Without economic reforms and sup-port from the European Union, thiswill mean the country will undoubt-edly have to increase its dependenceon Russia in both economic andpolitical terms. ●

Anna Maria Dyner is an analyst at the Polish Institute

of International Affairs. pism.pl

“Belarus willundoubtedly have to increaseits dependence on Russia”

“The longer theECB delays, the

bigger the risk of acatastrophic

mishap”

Belarus – one year onAnna Maria Dyner

CO-MANAGING EDITOR

GARETH PRICE(GPRICE@WBJ.PL)

CO-MANAGING EDITOR

ALICE TRUDELLE(ATRUDELLE@WBJ.PL)

POLITICS EDITOR

REMI ADEKOYA(RADEKOYA@WBJ.PL)

REAL ESTATE EDITORADAM ZDRODOWSKI(AZDRODOWSKI@WBJ.PL)

COPY EDITORSDAVID INGHAMELLA PA¸KA

INTERNSIZABELA DEPCZYK VERONIKA JOY

CONTRIBUTORSE. BLAKE BERRYEWA BONIECKAMARK ORDONLIAM NOLAN

COLUMNISTSPAUL FOGOJUDITH GLINIECKIADAM NARCZEWSKIANDREW NAWROCKI

PRODUCTION MANAGERPIOTR WYSKOK

GRAPHIC DESIGNER¸UKASZ MAZUREK

CARTOONSPIOTR WYSKOK

MARKETING &SALES

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

MAGDALENA KARPI¡SKA(MKARPINSKA@WBJ.PL)

AGNIESZKA KUCZYƒSKA(AKUCZYNSKA@WBJ.PL)

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

KAROL KOSIOREK(KKOSIOREK@WBJ.PL)

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

SUBSCRIPTIONS MANAGERAGNIESZKA MICHALIK(AMICHALIK@VALKEA.COM)

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

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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.

DEC 19, 2011 – JAN 8, 201210 www.wbj.pl YEAR IN REVIEW

A look back at 2011

Change in the airWBJ takes a look backat the major eventsthat took place inPoland and around theworld in 2011

With the continuation of theeuro-zone crisis, the revolu-tions that swept the Arabworld, a historic Polish parlia-mentary election, BarackObama’s first visit to Polandand several major deals in theenergy sector, Poland’s politi-cians and businesspeople werecertainly kept busy in 2011.

Euro-zone crisisPoland kicked off its six-monthturn at the head of the Euro-pean Council on July 1 with theambitious goal of “restoringhope” to the European Union,in the words of Prime MinisterDonald Tusk. But the euro-zone crisis quickly eclipsed Pol-ish priorities and Mr Tuskadmitted in Strasbourg sixmonths later that he could nothonestly say Europe was moreunited or that the biggest crisisthe EU had ever seen had beeneffectively dealt with.

As a non-euro-zone mem-ber, Poland’s ability to manage

an effective response as theeconomies of Greece, Portugaland Italy faltered, was limited.The country used what power ithad to repeatedly warn againstthe threat that the crisis couldlead to the creation of a two-speed Europe, with euro-zonecountries on one side, and non-euro-zone countries on theother. As the year and the Pol-ish presidency both drew to anend, the message seemed tohave been taken on board, withall EU countries except the UK

having pledged to worktowards creating a fiscal union.

On the domestic front, thePolish government’s supportfor a more integrated Europeheightened tensions between itand the country’s main opposi-tion party, Law and Justice(PiS), which argued this couldendanger Polish independence.

The crisis in the euro zonealso took its toll on Poland’seconomy, with the z∏oty beinghit particularly hard towardsthe end of the year. Projected

GDP growth for full-year 2011was revised downwards from4.6 percent to 4 percent, whilethe 2012 budget plan assumesGDP growth of 2.5 percent.

However, in part because ofthe uncertain economic situa-tion in Europe, the opening ofthe labor markets of Germanyand Austria in May did not leadto an exodus of skilled Polishworkers, as many had feared itwould. And the Warsaw StockExchange’s indices, which

plunged along with major inter-national stock markets in thesummer, performed generallywell over the course of the year.

Smolensk tragedyThe long-awaited official Polishreport into the April 10, 2010plane crash in Smolensk, whichtook the lives of President LechKaczyƒski and 95 others, wasreleased in August. It revealedthat the pilot, co-pilot and nav-igator were not sufficientlyqualified to fly the ill-fatedTupolev Tu-154 plane.

In the wake of the report,Defense Minister BogdanKlich resigned from his postand the 36th Regiment, accusedof not training its pilots proper-ly, was disbanded. But thereport was strongly criticized byboth Poland’s main oppositionparty and Russian investiga-tors, who had released theirown report in January.

Parliamentary electionsIn October, Poles gave a secondmandate to a Civic Platform-ledgovernment headed by DonaldTusk. Civic Platform (PO)became the first party in post-

communist Poland to be electedin back-to-back parliamentaryelections. Investors, who gener-ally view PO as a business-friendly ruling party, reactedpositively to the news, whileexperts said PO’s victory was atestimony to the party’s per-formance in its first term, butalso to a maturing of the Polishpolitical system.

But the election’s biggestsurprise was the strong per-formance of Palikot’s Move-ment (RP), which received 10percent of the vote during itsfirst-ever attempt to enter par-liament. The ultra-liberal RPreplaced the Democratic LeftAlliance (SLD) as the third-largest party in the Sejm, andimmediately began clashingwith the conservative PiS.

PiS itself remained the mainopposition party but was weak-ened when a group of 16 MPs,united in their criticism of MrKaczyƒski and assembledaround former PiS deputyleader Zbigniew Ziobro, leftthe party and established a newparliamentary caucus.

After the elections DonaldTusk seemed to feel he had the

Deals of the year

One of the largest deals the Warsaw StockExchange saw this year was the privatizationof Jastrz´bska Spó∏ka W´glowa (JSW), theEU’s largest producer of coking coal, whichraised nearly z∏.5.4 billion in June.

Despite Poland’s commitment to reducinggreenhouse gas emissions over the next fewyears, some of the biggest investmentsannounced or carried out in 2011 concernednew coal-fired-plants. Among them is thez∏.11-billion construction of two new powerblocks at PGE’s Elektrownia Opole powerplant, a new z∏.6-7 billion power block forEnerga, and a €1.8 billion plant that FrenchEDF plans to build in Poland. State-con-trolled power groups Enea and Tauron alsosaid that they were planning to launch con-struction of new coal-powered blocks.

Also in the energy sector, Swedish Vatten-fall AB sold several of its Polish assets for atotal of z∏.7.6 billion to state-controlled Polishenergy firms PGNiG and Tauron in August.Both transactions were judged to have beenabove market prices.

In the telecoms sector, Polish billionaireZygmunt Solorz-˚ak acquired mobile opera-tor Polkomtel for z∏.15.1 billion, adding to hiscollection of media and telecoms companies,and enabling him to embark on creating asuper-fast 4G LTE network across Poland.

Copper miner KGHM, which revised itsexpected 2011 net profit upwards on higher-than-expected copper prices, entered into anagreement to buy Canadian mining groupQuadra FNX Mining for z∏.9.46 billion. If thedeal goes through, it would be the singlelargest foreign acquisition made by a Polishcompany.

Deals that were less successful includedthe attempted sale of Enea for z∏.5 billion,which fell through when French EDF pulledout of negotiations in April. Poland’s dealwith Chinese contractor COVEC for the con-struction of a segment of the A2 highway alsowent awry. COVEC, whose bid amounted toless than half the amount the government hadbudgeted for the project, was removed fromthe project due to delays. ●

Alice Trudelle

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Events in Libya dominated the headlines in 2011

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Mr Palikot’s party received 10 percent of the vote in the 2011 parliamentary elections

Euro 2012

DEC 19, 2011 – JAN 8, 2012 YEAR IN REVIEW www.wbj.pl 11

political capital to embark onmajor economic reforms,among them a gradual exten-sion of the retirement age to 67for both men and women, anincrease from 10 to 25 in thenumber of years that policeofficers and military personnelmust serve before they canretire and a reduction in costlyprivileges for other groupssuch as miners, the clergy andfarmers.

Foreign affairsAs 2011 was winding down,countries such as Syria werestill experiencing the wave ofprotests that swept the MiddleEast and North Africa from thevery beginning of the year. TheArab Spring saw the overthrowof the governments of bothTunisia and Egypt, while Libyawas rocked by an eight-month-long civil war, and the eventualcapture and death of its former

dictator, Muammar Gaddafi. The Polish government,

backed by public opinion,refused to join NATO’s mili-tary campaign in Libya. For-eign Minister Sikorski, howev-er, was the first foreign ministerfrom Europe or America tovisit the anti-Gaddafi transi-tional authority in May. He wasback again in October, thistime with the leaders of Polishoil and gas companies, just daysafter the dictator’s death hadsignaled the end of the war.

Closer to home, one of thePolish presidency’s top priori-ties was the finalization of aUkraine-EU free-trade areaand an association agreement,but the arrest and condemna-tion of former Ukrainian PrimeMinister Yulia Tymoshenkoput that in jeopardy.

Meanwhile, as Belarusianauthorities intensified theirrepression of domestic opposi-

tion throughout the year, rela-tions between Poland deterio-rated. A particularly low pointwas the trial and condemnationof human rights activist AlesBelyatsky, partly on informa-tion provided to Belarusianauthorities by unwitting Polishand Lithuanian officials.

US President BarackObama’s first visit to Poland inMay gave a boost to Polish-USrelations, although few con-cretes came out of the visit.President Obama confirmedthe establishment of a US AirForce aviation detachment inPoland starting in 2013, butPoles were still not included inthe US Visa Waiver Program.

Energy Potential cooperation regard-ing shale gas, which the USEnergy Information Adminis-tration estimates could lie inenormous quantities beneath

Poland, was also discussed dur-ing Mr Obama’s visit. Butalthough several major US,Polish and international com-panies actively prospectedthroughout the year, little inthe way of concrete informa-tion was uncovered about theactual size of Polish reservesand whether extraction wouldbe economically viable.

Japan’s Fukushima nucleardisaster, the largest since Cher-nobyl in 1986, led to proteststhroughout Europe over thesafety of nuclear energy. Andwhile Germany announcedthat it would phase out nuclearenergy altogether, Poland isstill moving ahead with plans tobuild two 3,000-megawattnuclear power plants by 2030.

The Nord Stream pipeline,which runs under the BalticSea, bypassing Poland, official-ly linked Russian gas reservesand German and European

consumers in November.Poland had long opposed theproject, and no high-profilePolish official was present atthe launch. ●

May the good times andtreasures of the presentbecome the golden memories of tomorrow.ADGLOBAL wishes youa Merry Christmas / joyfulholiday seasonand a Happy New Year.

ADGLOBALÊwiat gad˝etówa d g l o b a l . p l

January• Estonia adopts the euro• Tunisia’s government is overthrown

February• Ukrainian President Viktor Yanukovych

visits Poland• Hosni Mubarak is overthrown in Egypt

March• Japan is hit by a magnitude 9.0 earthquake

and a tsunami which causes a number ofnuclear accidents and over 15,000 confirmeddeaths

• Launch of NATO military intervention inLibya

• Polish hooligans make headlines after clashing with police at a match in Lithuania

April• First anniversary of the Smolensk disaster• Warsaw Stock Exchange celebrates its 20th

anniversary

May• Beatification of Pope John Paul II• German labor market opens to Poles• Osama bin Laden is shot and killed in

Pakistan by US Navy SEALs and CIA operatives. His body is buried at sea

• The Polish Cup final match in Bydgoszczsees rioting fans cause z∏.40,000 of damage

• German health authorities report the firstinstances of E. coli bacterial infections

• The EU agrees to a €78 billion rescue dealfor Portugal

• Barack Obama visits Poland

June• The European Commission pledges €210

million compensation for farmers who lostmoney due to the E. coli outbreak. Polishfarmers get €46 million

• Wroc∏aw chosen as Poland’s European Capi-tal of Culture 2016

July• Polish presidency launches• Russia lifts its ban on Polish fruits and

vegetables, ongoing since June 2• Anders Behring Breivik detonates a bomb in

Oslo before going on a shooting spree at ayouth camp on Utøya Island

• The Polish government publishes its officialreport into the April 10, 2010 plane crash inSmolensk

• European leaders pledge a second €110 billion bailout to Greece

August• Controversial politician Andrzej Lepper is

found dead in his Warsaw office. His death isofficially ruled a suicide

• Rating agency Standard & Poor’s down-grades US credit rating

• Polish and world markets go into turmoil andregister severe losses

September• Polish Finance Minister Jacek Rostowski

warns the European Parliament that if theeuro zone collapsed the EU would not survive and a war could ensue, drawing sharp criticism

• Romania and Bulgaria are denied accessionto the Schengen zone

• The Eastern Partnership summit takes placein Warsaw

October• Parliamentary elections are held in Poland • In Ukraine, Yulia Tymoshenko is sentenced

to seven years in prison• Poland’s Internal Security Agency (ABW)

arrests 19 people in connection with the JulyOslo bombing

• The NATO military intervention in Libyaends

• The global population reaches seven billion

November• Polish pilot Captain Tadeusz Wrona executes

an emergency landing of a Lot Polish Airlines Boeing 767 at Warsaw’s Chopin Airport

• The first Nord Stream gas pipeline is official-ly opened

• Independence day riots rock the Polish capital, 250 people are arrested

• Greek Prime Minister George Papandreouresigns

• Italian Prime Minister Silvio Berlusconiresigns

• PGE shortlists ̊ arnowiec, Choczewo andGàski on the Baltic coast as the three potential locations for building the country’sfirst nuclear power plant

December• Parliamentary elections are held in Russia,

massive protests against alleged election rigging erupt

• Croatia signs EU accession treaty• Poland commemorates the 30th anniversary

of Martial Law. PiS organizes a march focusing on threats to Polish independence

• Kiev hosts EU-Ukraine summit ●

Several events throughout the year cast ashadow over Poland’s image as co-host of theEuro 2012 soccer championship.

In the spring, Polish hooligans were promi-nent at an international match in Lithuania,and also at the Polish Cup final in Bydgoszcz.In response, the Polish government intro-duced electronic tags for convicted hooligansand on-site court proceedings at stadiums.

In June, a report by the Supreme AuditOffice (NIK) said delays in construction oftransport infrastructure had put Poland’s abil-ity to effectively co-host the event in doubt.Infrastructure investments related to the tour-nament are forecast to cost a hefty z∏.69.6 bil-lion, the lion’s share of the total z∏.81.3 billionearmarked for the whole event.

In December, allegations of corruptionfrom the Polish Football Association’s(PZPN) secretary-general Zdzis∏aw Kr´cinaand its president Grzegorz Lato eventually ledto the dismissal of Mr Kr´cina. Mr Lato stayedon, but many expect a significant shake-up ofthe organization after the tournament.

However, positive news included the com-pletion of all four Polish venues for Euro2012, with the National Stadium in Warsawbeing handed over for use in mid-December.In addition, in the tournament’s group-stagedraw, Poland, classed as one of the tourna-ment’s rank outsiders, was handed possiblythe easiest of the four first-round groups,being drawn against the Czech Republic,Greece and Russia.●

2011 at a glance

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President Obama made his first visit to Poland in May

The economy in 2012

Navigating a sea of uncertainty

DEC 19, 2011 – JAN 8, 2012COVER STORY12 www.wbj.pl

Expert’s Opinion

BROUGHT TO YOU BY HSBC BANK POLSKA SA

Alan Jarman CEO HSBC Bank Polska SA

The history books will need more spacefor their chapter on 2011. Nobody couldhave predicted sweeping political changeacross North Africa, the fall of two demo-cratically elected governments in Europe,plus the gravest economic threat to thewhole of Europe since 1945. So, weleave 2011 in a far more uncertain moodthan we entered it, damaging an alreadyfragile confidence that will hold backrecovery from the economic and financialcrisis that started in 2008.

The situation provides an interestingcontrast to life in Poland, where we con-

tinue to see economic growth outpac-ing the rest of the EU, consumer andcorporate confidence remaining strongand where we have political stabilitythrough the first government since1989 to be re-elected. I’m not surewhether Poles truly recognize how gooda position to be in this is, and thatalmost every country in Europe wouldswap positions with Poland right now.

The question everyone is asking is:“How will Poland be impacted by theeuro-zone crisis?” There are tworesponses. The first is “I don’t know!” Noone can predict what will happen next,and whether politics and economics cancombine to provide much-needed solu-tions. So until the answer becomesclearer, all outcomes remain theoretical-ly possible.

Having said that, the second part ofthe answer is that Poland will, to someextent, be impacted. With 50 percent ofexports going to the EU, and with 70 per-cent of the banking sector being foreign-owned (mainly from euro-zoneeconomies), the potential problems areclear and visible.

Poland has already dodged one majorcrisis, and looks poised to do so again. Ifit does, Europe will look on in envy. ●

Can Poland continue to be the

economic ‘exception’ in Europe?

Will euro-zoneheadwinds blow thePolish economy off theslow but steady coursemany expect it totravel in 2012?

Predicting what will happen toany European economy in2012 is a tricky matter. Adefault by Rome, a creditdowngrade for France or Ger-many, or some other equallycatastrophic news from withinthe euro zone, and all fore-casts would be renderedworthless. Some may arguethat for 2012, all bets are offwith regard to the continent’seconomies. Even when itcomes to Poland – a countrywhich has stayed relatively sta-ble in the storms of the pastfew years – the guessing gameis fraught with uncertainty.

On the other hand, busi-

nesses could hardly function ifcompletely bereft of somekind of macroeconomic frameof reference around whichthey can plan for the yearahead. It therefore seemsworthwhile to attempt to pro-vide one for Poland.

One thing everyone seemsto agree on is that in 2012, thePolish economy is unlikely tosee the 4 percent growth ratethat is expected for full-year2011.

Although the economy has-n’t slowed down significantlyin the past few months (assome had predicted), it seemsimprobable that businessactivity will not be affectednegatively in the coming year,due to the euro-zone slumpand continued investor anxi-ety.

Out of the top-five destina-tions for Polish exports, threeof them – Germany, France

and Italy – are members of thetroubled euro zone. The mostsignificant question thereforeconcerns the extent to whichthe woes of “old Europe” willweigh on Poland’s economy in2012.

In its revised budget planfor next year, which wasreleased in December, thegovernment assumes GDPgrowth of 2.5 percent. TheIMF’s latest forecast, likewise,predicts 2.5 percent growth forPoland in 2012, whereas theWorld Bank expects the CEE’sbiggest economy to expand by2.9 percent. But what do Pol-ish economists think?

‘Realistic’ predictionsbut German worries Przemys∏aw Kwiecieƒ, chiefeconomist at X-Trade Brokers,told WBJ that the govern-ment’s GDP projections are“realistic.”

“Exports will power theeconomy next year. In the firsthalf of 2009, in the heat of thefinancial crisis, Polish exportscollapsed by double-digit num-bers. There is no sign whatso-ever of that happening nowand this is mainly becauseGerman exports are still doingrelatively well,” he said.

Roughly a quarter ofPoland’s exports go to Ger-many, many of which are usedin turn as components in Ger-man exports, so the signifi-cance of the economic healthof Poland’s richest neighbor isparamount. But Mr Kwiecieƒsays that for Germany to con-tinue to do well, certain thingsneed “to not happen.”

“Firstly, we can only hopethat S&P’s chief economist’sallusion to a major Germanbank going under will notcome to bear. That could leadto a freeze in the banking sec-tor in the whole of Europe,”said Mr Kwiecieƒ.

His reference was to state-ments made by ratings agencyStandard & Poor’s chief econ-omist, Jean-Michel Six, whosaid after the December 8-9EU summit that time was run-ning out for the euro zone toresolve its debt problems, andthat it might need a financialshock to get it moving.

“There is probably yetanother shock required beforeeverybody in the euro zonereads from the same page, forinstance a major German bankexperiencing some real diffi-culties on the markets, whichis a genuine possibility in thenear term,” Mr Six said,adding that “then there wouldbe a recognition that every-body is indeed in the sameboat and that even Germaninstitutions can be affected bythis contagion.”

The statements were omi-nous to say the least, and it isworth noting that S&P hadshocked financial markets atthe beginning of December byputting 15 euro-zone coun-tries, including Germany, onwatch for a potential down-grade. The consequences of amajor German bank goingbankrupt brings to mind mem-ories of the chaos unleashed inthe global financial systemafter the collapse of LehmanBrothers in 2008.

The second danger to theGerman economy is a collapsein Asia, particularly in China –a major destination for Ger-

man exports. Putting it simply,if China’s economy slows, Ger-many’s will also, and Poland’swill almost certainly followsuit.

But Mr Kwiecieƒ said hedidn’t expect a “considerable”slowdown of the Chineseeconomy, which should stillgrow at around 7 percent in2012 – enough to keep itsdemand for imports strong –from the around 9 percentexpected for 2011.

Spending and investing Both Jaros∏aw Janecki, chiefeconomist at Société GénéralePolska, and Grzegorz Mal-iszewski, his counterpart atBank Millennium, also expectPolish net exports to rise nextyear. Though in Mr Mal-iszewski’s case, it is not for themost heartening of reasons.

“Domestic consumptionwill decelerate and importswill slow. This will in turncause net exports to rise,” saidMr Maliszewski. X-Trade’sKwiecieƒ also expects weakerconsumption in Poland due toa worsening situation in thelabor market and limitedupward movement in wages.

But Société Générale’sJanecki was more upbeat,expecting consumption toremain “strong.” He alsothinks the economy will get aboost, albeit a limited one,from the 2012 European soc-cer championships, which willto take place this summer in

Poland and Ukraine. Société Générale expects

Poland’s GDP to expand by “3percent or more,” according toMr Janecki.

Bank Millennium is cur-rently predicting 3.2 percentgrowth for Poland in 2012although Mr Maliszewski saysthat figure may be revised.

Mr Kwiecieƒ expects aweaker investment climatenext year, pointing to anexpected slowdown in publicinvestments as the soccer tour-nament approaches.

“Projects already startedwill be completed, but I don’texpect new ones to take off,”he said.

Société Générale’s MrJanecki differed, however, say-ing he thinks public projectswhich have not yet started willbe launched in 2012 andrushed through in the periodpreceding the tournament.

Mr Janecki was also morepositive about the overallinvestment environment,pointing to announcementsmade by several major compa-nies about investments inPoland next year.

Polish oil companies Orlenand Lotos, for example, planto make large investments in2012, while Portuguese firmJeronimo Martins intends toopen at least 850 new Biedron-ka discount stores in Polandbetween 2012 and 2014. Sever-al energy companies operatingin Poland, meanwhile, have

Remi Adekoya

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2012: Stormy economic waters ahead

DEC 19, 2011 – JAN 8, 2012 COVER STORY www.wbj.pl 13

also announced significantinvestment plans for 2012.

Weak z∏otyWhen it comes to the z∏oty,the consensus among econo-mists spoken to by WBJ wasthat the Polish currency wasunlikely to appreciate much inthe near future.

Mr Maliszewski expects thez∏oty to remain weak againstthe dollar and the euro in H1of 2012 before recovering inthe second half of the year. MrJanecki forecasts an exchangerate of z∏.4.20 to the euro bythe end of next year.

A weak z∏oty would boostexports, improving Poland’scurrent account deficit, at leasttemporarily. On the downside,the z∏oty’s depreciation wouldweigh on household dispos-able income, as nearly 40 per-cent of Polish household debtis denominated in a foreigncurrency.

That could further dampendomestic consumption. What’s

more, a weak z∏oty would alsoincrease the government’s debtlevel in 2012, thanks to anincrease in the value of thedebt it holds that is denominat-ed in foreign currencies.

Ratings agenciesalmightyNowadays it is difficult to talkabout the prospects for a coun-try’s economy without men-tioning the views of ratingsagencies. So what are themajor ratings players currentlysaying about Poland?

After the governmentunveiled its budget plan inDecember, Moody’s an-nounced that it was “positivefor the country’s credit rating”as it highlighted the govern-ment’s commitment to consol-idating public finances.

Fitch said it saw “no reasonfor any rating changes,” regard-ing Poland in the nearest future.That, at least, rules out anydowngrades from them for now.

Meanwhile, S&P said in

December that it might evenupgrade Poland’s credit ratingoutlook from “stable” to “pos-itive,” if the government real-izes its plans for fiscal consoli-dation and the deficit falls.

So, Poland seems to be inthe agencies’ good books, fornow at least.

Many ‘what ifs’Overall, growth forecastsappear much brighter forPoland than for most otherEuropean countries in 2012.

If the euro zone doesn’tdisintegrate and Prime Minis-ter Donald Tusk pushes aheadwith the economic reforms heannounced in December, thenthe Polish economy has a goodchance of ending 2012 in ahealthy shape.

Of course, there are manymore “ifs,” but that is a situa-tion we will all have to get usedto – the stability and pre-dictability that Europe wasonce known for has now simplyevaporated. ●

Some of the events you shouldexpect to make the headlines in2012

January• The six month Danish presidency of the EU

Council launches• The euro zone celebrates 10 years of

existence. (Or will it?)• Egypt holds the third round of its

parliamentary elections and first round of legislative elections

• Politicians and businesspeople meet inDavos, Switzerland for the Annual WorldEconomic Forum

February• Queen Elizabeth II celebrates her Diamond

Jubilee, marking the 60th anniversary of heraccession to the thrones of the United King-dom, Canada, Australia and New Zealand

• Greece holds parliamentary elections• The 84th Academy Awards take place in

Hollywood

March• The new intergovernmental treaty for

greater fiscal coordination and budget discipline among EU nations is expected toenter into force

• Russia holds presidential elections• Poland’s leading party, Civic Platform (PO),

celebrates 10 years since its founding• Slovakia holds parliamentary elections• Egypt holds presidential elections

April• France holds the first round of its

presidential elections

May• France holds the second round of its

presidential elections• The 2012 World Expo takes place in South

Korea

June• World leaders meet in Los Cabos, Mexico,

for the G20 summit • Euro 2012 matches are held in Poland and

UkraineJune 8: Poland plays against Greece at theNational Stadium in WarsawJune 12: Poland plays against Russia at theNational Stadium in Warsaw

June 16: Poland plays against the CzechRepublic at Wroc∏aw’s Municipal Stadium

• France holds legislative elections• The Polish Internal Security Agency (ABW)

and Foreign Intelligence Agency (AW) mark10 years of operations

July• The final match of Euro 2012 takes place at

Kiev’s Olympic Stadium• Cyprus kicks off its term as president of the

Council of the EU• London hosts the Summer Olympics

August• Muslims around the world celebrate

Ramadan

September• The 22nd Economic Forum is held in

Krynica, Poland

October• Ukraine holds parliamentary elections • Georgia holds parliamentary elections • Lithuania holds parliamentary elections • The Czech Republic holds legislative

elections

November• Millions of Poles travel across the country to

visit the graves of loved ones on All Saint’sDay

• The United States holds presidential elections

December• The first commitment period of the Kyoto

Protocol ends• End of the great cycle of the Maya

calendar’s Long Count

Date uncertain• The Polish Geological Institute is expected to

release its estimate of the country’s shale gasreserves

• PGE is expected to select the firm which willsupply nuclear technology for Poland’s firstnuclear power plant

• Belarus is expected to hold parliamentaryelections

• National parliaments of EU nations ratifythe new intergovernmental treaty for greaterfiscal coordination and budget disciplineagreed to in December 2011 ●

The year ahead

DEC 19, 2011 – JAN 8, 201214 www.wbj.pl

Wille nad ZalewemAdvertorial feature

Approximately 20 kilometersfrom the First Warsaw Golf &Country Club, near the pictur-esque Zegrze Reservoir, in thevillage of Rajszewo, new luxuryvillas are being constructed.The location is ideal not only fornature lovers but for avidsailors and golfing enthusiastsalike. The planned luxury hous-ing community will be 20 min-utes from Warsaw by car andwould make for an exquisiteresidence for those who workin the hectic capital during theday, and who want to experi-ence comfort and silence in thearea’s natural and soothingconditions. Whether one wish-es to relax by the marina orenjoy a round of golf, residentscan take advantage of all thatthe villa community has tooffer. Could you ask for any-thing more?

The estates, named “Willenad Zalewem,” include 39 com-fortable single-family dwellings,and are located on a plot offorested area of over 1,000sqm. Each building will be builtin two stages, the first of whichis to be completed later thisyear. The developer is currentlyworking on four differentdesign proposals which willvary in size from 215 sqm to340 sqm. Prices will start atz∏.1.5 million. During the firstphase of the project, the Tra-montana villas are to be con-structed, named after the coolwinds that run through the westcoast of Italy and Corsica.

The architecture of thebuildings draws clear inspira-tion from Mediterranean cul-ture, while the large facades,taking advantage of amplewindow space, invite nature

right inside your home. Theinner axis of the houses islined with old trees. And foreach villa, designers haveincorporated the natural ter-rain in order to optimize sunexposure, garden size and toensure optimal privacy.

The estate will be a gatedcommunity fully protected by asecurity team. The area will befenced all around and moni-tored, with a reception locatedright at the entrance. In addi-tion, alarm systems will beintroduced for each of the vil-las. Right near the entrance ofthe estates, located on ul.Wojska Polskiego (vis-a-vis theentry onto Port Pilawa) therewill be a service building withan estimated area of 250square meters, allowing eachresident to have a parking lotnear their home. Here, there

are also plans for a local shop,cafeteria and bakery. On thefirst floor of the premises thereis potential for office space andalternatively, for two separateapartments.

Wille nad Zalewem will beimplemented by Plan InvestGroup, through cooperationwith Poland Dernet EnterprisesLtd. Currently, Invest Plan is abuilding group in Poland whichspecializes in residential andcommercial real estate. In addi-tion to the Wille nad Zalewemproject, the company plans tocomplete preparatory work fora housing estate in the town ofO˝arów Mazowiecki, as well asa project in Kraków.

Gomez Studio which de-signed Wille nad Zalewem is anarchitectural studio operatingunder the leadership of HernanGomez. Several years ago the

Gomez Studio designed theaward-winning family house ofthe year. Clearly, the two proj-ects echo each other in theirquality and style.

The general contractorbehind the construction is Vis-bauen, founded on the jointcooperation of Panorama Eco-Invest and Eko-gips, which haveworked in the construction mar-ket for several years.

Together with the villa com-munity, there will also be anentire infrastructure which willinclude sailing shops, a porttavern, and even a mini zoo. Anarea for sports, both for chil-dren and adolescents, isplanned. And of course, thegolf course can be reachedwithin 20 minutes. In such awell-located community, sailingand golf can become an every-day pleasure. ●

39 exclusive homes from 215 to 451 sqm

Quick and easy travel to and from Warsaw

Big, forested plots

Close to Zegrze Reservoir (across from Port Pilawa and Port Jachtowy Niepor´t)

New laws in 2012: what to expect

Przemys∏aw Kastyak,partner, Magnussonprzemyslaw.kastyak@magnussonlaw.com

After so many crucial changesin the Polish Law in 2011, youmight expect that 2012

wouldn’t bring so many majoramendments in the main fields oflaw. That is, to some extent, true andis also related to the pause in the par-liament’s work caused by the elec-tions in October 2011.

However, due to the victory of thePO-PSL coalition, it is broadly expect-ed that the old-new government will

quickly kick off a set of brave butunpopular reforms in order to savethe budget and keep Poland the greenisland in the stormy waters of theEU’s economic troubles. Not manydetails of the new laws and reforms tobe implemented in 2012 are known,but more than anything an increase insocial security premiums is expected,including an increase of the total pen-sion premium back to 8 percent,which is planned as of February 2012.Tax increases or other regulationsaiming to restrict taxpayers from low-ering or avoiding paying taxes alsocannot be excluded.

The good newsBut to concentrate on good news forentrepreneurs, it must be mentionedthat the second stage of the so-called“deregulation package” is cominginto force in January 2012, includinga shortening of the limitation periodfor outstanding social security premi-ums from 10 to five years. There willalso be more elastic rules for employ-ees to use vacation leave, asdescribed in detail in a separate arti-cle by Zuzanna Wencel (see page 18).

Also, changes as of 2012 to the

widely criticized rules on income taxadvance payments should be seen ina positive light, as entrepreneurs willno longer have to pay a doubledincome tax advance payment justbefore Christmas – there are moredetails about this in the articleregarding tax amendments by TomaszRysiak (see page 18).

Another piece of good news forentrepreneurs is the amendment to theCivil Procedure Code as of May 2012.The highly restrictive separate “com-mercial procedure” applicable to casesbetween entrepreneurs will finally beabolished. The change is welcome, asthe current rules for commercial pro-cedures are so restrictive that they areoften seen as almost depriving entre-preneurs of their constitutional right toseek a judgment in court.

Other changes to the Civil Pro-cedure Code are also positive andinclude, among other things, a sim-plification of the appeals procedureand the abolition of certain restric-tions to appeals of second instance,amendments to injunctions in copy-right disputes and more compe-tence for court assistants in simplecases.

… and more good newsBut that is not the end of the goodnews for business. An interesting andrevolutionary change has been imple-mented with respect to setting up alimited liability company. As of Jan-uary 2012, a limited liability companymay be established via the internet.The company’s founders will have tofill in an articles of association tem-plate, available on a governmentwebsite, and send it via internet afterhaving signed it electronically. Acompany will have to be registered bythe court within one day – this pro-vides a completely new quality on thePolish market.

The standard template will notallow for making any changes; suchchanges will be possible after regis-

tration and will have to be imple-mented in the traditional way. Thislittle inconvenience is neverthelessacceptable, taking into account thatthe company will be registered andable to legally operate within one day.

Another new solution will bebrought by the new act on timeshar-ing, which will come into force as ofApril 2012. The act regulates fournew types of timesharing contractsand introduces increased require-ments for companies offering time-sharing, with special respect todetailed information regardingoffered products and services, as wellas tools to save clients from dishonestcompanies, such as the newly regulat-ed right to terminate the contract orrestrictions for timesharing compa-nies from demanding certain types ofcollateral.

Other changesAfter some confusion this past Julycaused by the implementation of theVia Toll road payment system, roadtransport legislation will also undergochanges as of January 2012, when theamended Transport Law comes intoforce. Continued on p. 17 ➡

Bartosz D´bskipartner, Magnussonbartosz.debski@magnussonlaw.com

Despite the fact that we had ageneral election in Poland in2011 and the Polish parlia-

ment ceased its legislative activity

between mid-September and Decem-ber, once again approximately 230new statutes were issued in 2011. Thisis more or less the same number as inthe previous record years.

The number of new acts issued byparliament is huge. Taking into con-sideration the average length of astatute together with all regulationsrelated to their implementation, onewould have to spend at least fivewhole days every week doing nothingbut reading these documents in orderto be able to follow the new lawsbeing entered into force in Poland. Ithas become almost impossible for theaverage citizen to keep up with eventhe most important changes in thestatutes.

Work in progressFortunately, the problem of over-pro-duction of regulations has recentlybeen spotted by several top authori-

ties in Poland, including PresidentBronis∏aw Komorowski and PrimeMinister Donald Tusk. Severalmonths ago the president declaredthat he would like to curb the legisla-tive activity of parliament by makingit more difficult for its members toinstitute work on new statutes, forexample by increasing the minimumnumber of members of parliamentneeded to submit drafts of new actsto parliament from 15, to 46 mem-bers.

The prime minister, on the otherhand, urged his ministers to concen-trate their legislative initiative in 2011only on the most important acts.Hopefully he will ask the ministers inhis new government to do the same inthe following years and will be moresuccessful in convincing his subordi-nates of how important that is.Although these methods seem a bitundemocratic, they may be necessary

to reduce the number of new regula-tions as well as increase the qualityand stability of law in future.

Of course no one is saying thatthe task of reducing the number ofadopted statutes is an easy one.First, Poland is a member of theEuropean Union and is obliged toimplement a certain number ofdirectives and other rules issued bythe European authorities, whichthemselves are not very good at lim-iting their law-making activity.Around one-fifth of all statutesadopted in 2011 were aimed atimplementing European legislation.Secondly, everyone knows that sig-nificant reforms must be introducedin Poland in the next several yearsand these reforms will have to beimplemented by new statutes.Thirdly, it is obvious that the mod-ern world is becoming increasinglycomplicated and additional rules

are needed to regulate new occur-rences, whether anyone likes it ornot.

Let’s hope, however, if the presi-dent and the prime minister are per-sistent enough in their aim to stopover-regulation, they could at least beable to cut down the number ofsuperfluous norms regulating theareas which do have to be regulatedor reduce the number of poor-qualitynorms which sooner or later have tobe corrected or explained by newnorms. Continued on p. 16 ➡

Changes to Polish law in 2011

A s p e c i a l s u p p l e m e n t o n c h a n g e s t o P o l i s h l a w • DECEMBER 19, 2011 – JANUARY 8, 2012

16 17 18

BROUGHT TO YOU BY MAGNUSSON

LAW IN POLAND

In this supplementWhat to expect in 2012 . . . . . . . . . . . . . . .15, 17

Changes to law in 2011 . . . . . . . . . . . . . .15, 16

Calendar of 2011 changes . . . . . . . . . . . . . . .16

Public procurement . . . . . . . . . . . . . . . . . . . . .17

Perpetual usufruct . . . . . . . . . . . . . . . . . . . . . .17

Business activity . . . . . . . . . . . . . . . . . . . . . . .18

Tax law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

International law . . . . . . . . . . . . . . . . . . . . . . .18

“A company will beregistered and able tolegally operate within

one day”

A calendar of legal changes in 2011

New public procurement rules New tax laws

DEC 19, 2011 – JAN 8, 2012LAW IN POLAND16 www.wbj.pl

Changes to Polish law in 2011➡ Continued from p. 15

Changes important to businessFor the time being, the best way foran average person to cope with thehuge amount of new legislation is toconcentrate on the most importantissues from one’s own point of view.So what were the most significantchanges in 2011 from the point ofview of businesspeople in Poland?

In my opinion, the most importantwere changes in VAT, deregulationconcerning business activity, newrules concerning public holidays, andamendments concerning mortgagesand the perpetual usufruct right.

Starting from January 1, 2011 theauthorities decided to increase VATrates to 5 percent, 8 percent and 23percent, depending on the type ofproduct or service involved, in orderto keep public finances under controlin 2011 and in the following years.

Although many feared that this stepwould negatively affect the Polisheconomy, looking at the macroeco-nomic indicators for 2011, it seemsthat the economy coped quite wellwith the change, as Poland remainedone of the fastest growing economiesin Europe.

The authorities also took somesteps to facilitate business activities inPoland, implementing the so-called“deregulation package” on July 1,2011. This reduced the number ofcases where authorities may demandthat businesspeople should providethem with official certificates issuedby other authorities. Instead, busi-nesspeople will simply be allowed toprovide their own statements to theauthorities to confirm the same factsthat had to be confirmed by the offi-cial certificates before.

A new central register of soletraders was also launched, allowing

individuals who conduct businessactivities to update their data fromany place in Poland and providingthe public with easy access to dataconcerning all sole traders regis-tered in Poland. The new regulationalso allows a sole trader to convert abusiness enterprise into a limitedliability or joint-stock company,without losing the rights and bene-fits connected with this businessenterprise.

In labor law, the obligation tomake up for a day off when a publicholiday falls on a Saturday was abol-ished, but as partial compensation foremployees, a new public holiday(Epiphany, on January 6) was intro-duced as a statutory day off.

Significant changes affecting realproperty and banking were alsomade, due to amendments to mort-gage as well as Land and MortgageRegister regulations. The division

between the ordinary and capped(limited) mortgage was abolished. Itbecame possible to establish onemortgage to secure several claims ofthe same creditor resulting from dif-ferent legal relations. New regula-tions concerning priority of mort-gages were introduced. However, themost important regulation from thepoint of view of those who plan topurchase new apartments from devel-opers is probably that which allowsthe mortgage set by the developer forthe whole plot of land (to secure loanfinancing for the construction of thebuilding) to proportionally encumberindividual apartments, after the own-ership of individual apartments isseparated from the ownership of theplot of land.

Last but not least, the rules con-cerning the perpetual usufruct rightfee have been modified. A perpetualusufruct right is a right to the real

estate, established by the state treas-ury or municipalities for the benefitof individuals or entities, which hascharacteristics of both an ownershipright and a long-term lease. A signifi-cant part of land in Polish cities isheld by individuals and entities underthis right, instead of under an owner-ship right. The holder of a perpetualusufruct right is obliged to pay anannual fee whose amount depends onthe value of the real estate. Before2011, the fee could be updated everyyear, with the scale of the increasebeing unlimited. From this year on,the fee may only be changed once inevery three years and in case the newfee exceeds the current fee by a factorof two, it will come into force gradu-ally.

For other important changes in2011, please see the accompanyingcalendar (below) which contains asummary of major changes.●

BROUGHT TO YOU BY MAGNUSSON

Changes to Polish law in 2011: a calendarPiotr BobrowskiMagnussonpiotr.bobrowski@magnussonlaw.com

January 1: Increase of VAT rates

From January 1 2011, VAT rates increased by one per-

centage point from 7 percent and 22 percent to 8 per-

cent and 23 percent respectively. Moreover, the new

VAT rate of 5 percent was introduced. The increased

rates will apply until December 31, 2013.

January 1: New public holiday

An amendment to the Labour Code introduced

Epiphany (January 6) as a new statutory day off. How-

ever, the obligation to make up for holidays falling on a

Saturday was abolished.

February 20: Substantial amendments to the

Land and Mortgage Registers and Mortgage Act

come into force

The most important changes regard the abolition of the

division into ordinary and cap mortgages, the introduc-

tion of the possibility of securing a couple of receiv-

ables due to the same creditor by one mortgage, or

securing receivables due to different persons, provided

that they result from financing one investment. Further-

more, an owner of an encumbered property has the

right to claim reduction of the amount of the mortgage

when its amount becomes excessive and to select one

of the outstanding mortgages to replace the expired

one. Additionally, one mortgage includes both the prin-

cipal amount of a debt as well as interests and other

costs. The currency of the mortgage is now independ-

ent of the currency of the debt.

May 11: Amendment to the Public

Procurement Law

This obliges awarding entities to exclude from the con-

tract those contractors with whom the relevant award-

ing entity has terminated or withdrawn a public con-

tract due to reasons attributable to the contractors

(with certain reservations).

May 16: New International Private Law

comes into force

The new act covers a broad scope of matters such as

incapacitation, personal interests, power of attorney,

and relations between consumers and entrepreneurs.

The introduction of regulations concerning intellectual

property rights is very significant. When it comes to the

law governing contractual and non-contractual obliga-

tions, the new act refers to European Union regulations

Rome I and Rome II, respectively. With regard to prop-

erty rights, provisions concerning the right to some

means of transport and objects being transported were

introduced.

July 1: The Act on Reduction of Administrative

Barriers for Citizens and Entrepreneurs (The First

Deregulation Act) comes into force

The aim of this act is to limit administrative control over

establishing business activity and to reduce the num-

ber of procedures and administrative obligations

imposed on entrepreneurs by the introduction of a con-

siderable number of amendments to a variety of acts.

One of the most significant changes is the abolition of

the requirement to obtain from different public admin-

istrative authorities around 200 – mostly payable –

certificates (now replaced by declarations, which are

written by the entrepreneurs themselves). The amend-

ment also reduced some of the official fees, and made

it possible for entrepreneurs acting as natural persons

to convert into a limited liability or joint-stock company.

July 1: Central Registration and Information on

Business (CEIDG) is introduced pursuant to the

amendment of Act on Freedom of Economic

Activity

The aim of this change was to create a nationwide sys-

tem that would enable the keeping records of busi-

ness activities run by natural persons. As of January 1,

2012, CEIDG will contain information on all entrepre-

neurs who are natural persons and running a business

in Poland. The new system also facilitates the business

activities registration process, which is now possible

via internet. The hitherto EDG-1 form is replaced by the

CEIDG-1 form. To register a business via the internet,

one has to use an electronic signature, verified by an

eligible certificate or a trusted profile.

August 26: The so-called Anti Spread Act

comes into force

The aim of the act, which amends the Banking Law

and a number of other acts, is to protect consumers by

enabling repayment of a denominated loan in the cur-

rency in which the loan was taken. In addition, the act

contains the provision that when entering into an

agreement concerning a denominated loan or a loan

indexed to a currency other than the z∏oty, the contract

should contain detailed rules determining both the

methods and terms of fixing the currency exchange

rate, on the basis of which the whole loan amount is

defined. Moreover, the amendment expressis verbis

enabled payment of instalments as well as full repay-

ment of the loan in the foreign currency, without caus-

ing the debtor any additional costs.

September 1: Amendment to the Act of

Lobbying Activity in the Law-Making Process

This amendment implemented changes to the rules on

planning the work of the Council of Ministers. Accord-

ing to new provisions, the government should keep a

permanent and up-to-date list of pending legislative

works, instead of issuing a list of legislative works

every six months. The amendment also made it possi-

ble to notify the interest groups not only of the bills, but

also of the guidelines for the bills, which enables con-

sultations with the interest groups at the earlier stage.

September 18: Amendment to the Air Law,

which adjusts the provisions of Polish law to

various EU civil aviation provisions

The aim of these changes is to increase the safety of

air transportation, for example by imposing liability on

one institution for the safety controls, irrespective of

the scope of communication (national, internal, within

the Schengen Area, or external). Moreover, the

amendment improves the effectiveness of the airports’

management process. It also implements to the statu-

tory provisions the rules for incurring airline fees, as

well as a table of fares.

October 9: Changes to the Real Estate Man-

agement Act and other acts

These modified the rules of the annual fee update with

regard to the right of perpetual usufruct. It also extend-

ed the number of entities entitled to file an application

for transformation of the perpetual usufruct right into

ownership rights and lifted the restriction concerning

type of a real property that may be subject to such

transformation. The time limit for filing the application

(December 31, 2012) was abolished.

October 22: Amendment to the European

Works Councils Act

This amendment came as a result of implementation of

Directive 2009/38/WE, which limits the authority of the

European Works Councils to transnational matters. A

definition of the notification was added, while the defi-

nition of the consultation was extended. The agree-

ments establishing the European Works Councils

should be concluded in writing.

October 23: Changes to the provisions con-

cerning the law of succession introduced by the

amendment to the Polish Civil Code

A new institution of specific bequest, which enables a

legatee to acquire particular rights upon the institution

of inheritance proceedings, came into force. Such a

bequest has to be included in the will prepared in the

form of notarial deed. Furthermore, the amendment

modified the provisions concerning statutory succes-

sion and the executor of the will. As a result, it is now

possible to appoint more than one executor.

October 27: Amendment to provisions

concerning outsourcing

The amendment grants banks the right to order entre-

preneurs to take action within the scope of bank serv-

ices. The new law extended the definition of the entre-

preneur to include partners in a civil law partnership

with respect to the economic activities they conduct.

A list of bank services that may be subject to outsourc-

ing agreements was also broadened. The obligation to

notify the Financial Supervision Authority about enter-

ing into an outsourcing agreement at least 14 days

before concluding the agreement was also abolished.

October 27: Amendment to the Code of

Commercial Companies.

This amendment simplified the requirements concern-

ing reporting and documentation in the case of merg-

ers and divisions of companies. The amendment also

released companies from the obligation to announce

merger plans in the official journal (Monitor Sàdowy i

Gospodarczy), provided that the plan is published free

of charge on the company’s website one month before

the commencement of the shareholder’s meeting.

December 18: The new Consumer Credit Act

The new act extended the term for withdrawal from an

agreement from 10 to 14 days. In the event that the

consumer withdraws from the agreement, he will not

bear any costs except for the interest accrued from the

day of the credit payout until the repayment date

thereof. The act increased the maximum amount of

consumer credit to z∏.255,550. The amendment stan-

dardized the form of providing information to the con-

sumer, in order to improve the comparability of the

offers. ●

DEC 19, 2011 – JAN 8, 2012 LAW IN POLAND www.wbj.pl 17

Public procurement changes: goodintentions, but devil lies in the detail

Igor Hanasattorney-at-lawMagnussonigor.hanas@magnussonlaw.com

OnMay 11, 2011 anamendment to thePublic Procure-

ment Law (PPL) came intoforce that expands the condi-tions under which a contractormay be excluded from a proce-dure for awarding a publiccontract.

From the time the amend-ment was introduced, award-ing entities have been obligedto give public contracts pur-suant to article 24 of the PPL.

Awarding entities areobliged to exclude from theprocedure those contractorswith whom they have, in previ-ous contract procedures, ter-minated or withdrawn a publiccontract. This is provided thatthe contract was terminateddue to reasons attributable tothe contractor, the termina-tion or withdrawal took placenot later than three years priorto the commencement of thecurrent procedure and that thevalue of the unperformed con-tract amounted to at least 5

percent of the one currently inquestion.

Trouble on the roadsPrior to the amendment,awarding entities were entitledto exclude a contractor solelyin cases where a court hadpassed a final judgement con-firming improper perform-ance of a public contract bythe contractor.

Nevertheless, lawmakersconsidered this to be inade-quate, hence the change oflaw. The case which led themto reach this conclusion fol-lowed a situation in whichPoland’s roads authority, theGeneral Directorate forNational Roads and Motor-ways (GDDKIA), terminateda public contract with a con-tractor due to insufficientprogress on the constructionof a motorway. The contrac-tor, which disagreed withGDDKIA’s decision, compet-ed once again for a new publiccontract for the same road andwon it by offering the lowestprice.

The new provision wasadopted with the aim of pre-venting such situations fromoccurring in the future. Buthow well has it been thought-out, and will it achieve thedesired results? In its currentwording, it is rather doubtfulthat it will be a success.

A question of guiltAs a result of the change oflaw that followed theGDDKIA case, the entitieswhich award public contractshave been given an effectivetool that allows them to

exclude contractors from theprocedure of awarding con-tracts for a not inconsiderableperiod of time.

Previously, this issue hadbeen resolved by a judgementin court (ascertaining guilt of agiven contractor), whereasnow the awarding entity is ableto terminate or withdraw acompany from a public con-tract due to reasons attributa-ble to the contractor (althoughthis does not necessarily meanthe contractor is culpableunder law).

It is true that the contractormay still defend itself in courtand prove that it should befound not guilty in a given situ-ation, but this does not changethe fact that the contractor willoften be excluded from con-tract awarding procedures fora three-year period anyway,since court cases of this naturegenerally last for up to threeyears. Only if it is able toquickly prove in court that theawarding entity acted unjustlywill it be allowed to participatein contract awarding proce-dures.

Compliance issuesMoreover, adoption of thesaid provision raises concernsabout its compliance withthose elements of EU law (theClassic Directive 2004/18/ECand the Public Sector Direc-tive 2004/17/EC) that enablethe awarding body to exclude acontractor from a procedurefor awarding a contract whenthe contractor has been guiltyof grave professional miscon-duct. This can be proven byany formal means which the

awarding entity must be ableto demonstrate (in particularlywhen a court has found thecontractor guilty of improperperformance of previous pub-lic contracts). The new Polishregulation, by contrast, allowsthe awarding entity to excludethe contractor even if guilt isnot proven.

A way that would allowthese provisions to be com-plied with has not been provid-ed for by the new provision.Furthermore, a contractormay easily evade this provisionby entering the contractawarding procedure as a sub-contractor of a contractor thatis significantly smaller thanthey are, providing them withprofessional knowledge, expe-rience, technical and humanpotential, as well as financialresources.

As a rule, the public con-tract will therefore effectivelybe performed by the samecontractor which previouslyhad a contract terminated.Only this time, the awardingentity will not be able to makethe contractor directlyaccountable for delays.

For the time being, wehave a provision whichenables the awarding entities,by way of arbitrary decisions(not necessary justified bylaw), to exclude contractorsfrom the contract awardingprocedure. It is also doubtfulthat this provision is in com-pliance with EU law.Although the fundamentalaim of the provision seemsreasonable, the details of itsimplementation unfortunatelyrequire improvement. ●

New rules for perpetual usufruct feesand the appraisal of real properties

Przemys∏aw Kastyak,partner, Magnussonprzemyslaw.kastyak@magnussonlaw.com

Perpetual usufruct is a peculiar-ity of Polish real estate lawthat allows the state to main-

tain ownership of land, while leasingit out to a private entity for longperiods of time, typically 99 years.Indeed, a significant amount of thereal estate in Polish cities is ownedby the State Treasury or municipali-ties and held in perpetual usufructby private entities. These privateentities pay an annual fee to holdthis right to perpetual usufruct, andthese fees have recently become animportant issue, since the municipal-ities, after a dozen or more years of

idleness, have finally begun toupdate the annual fees to reflecttheir legally required level, that is, 3percent of the value of a commercialproperty (1 percent in the case ofresidential properties).

The results can be shocking. Typi-cally the update results in an approxi-mately 40-fold increase, which, if theholder of the right does not appealagainst it, becomes due by March 31of the year after notice of the feeupdate is delivered.

In response to this trend, newrules were introduced as of October9, 2011. Pursuant to the new regula-tions, the annual fee may be changedonly once every three years and whenthe new fee is at least twice higherthan the current fee, the new fee

comes into force gradually – over aperiod of 3 years.

In general, that would be goodnews, but unfortunately the new reg-ulation is inconsistent, making itimpossible to unambiguously inter-pret the schedule for how the new feeshould be introduced.

What’s clear is that in the firstyear after the update notice isdelivered, the fee amounts to twicethe current fee. In the second year,the fee amounts to twice the cur-rent fee plus half of the differencebetween the final amount of thenew fee and the fee after thetwofold increase.

But when it comes to the thirdyear, clear interpretation becomesimpossible. It is unknown whether

the annual fee should amount to thefinal amount of the new fee orwhether it should be computed in thesame way as in the second year. If theregulation is not amended soon, itwill lead to an enormous number ofdisputes between holders of the per-petual usufruct right and the munici-palities.

Property appraisalDue to the impressive pace at whichnew roads are being built, anotherissue that has come to the fore is thatof the appraisal of property expropri-ated from owners for road construc-tion. On August 26 2011, the rulesgoverning these appraisals waschanged.

As a general rule, such properties

will no longer be appraised with ref-erence to transactions of propertiesdesignated for road purposes, since inreality there is no free market forsuch transactions – the current ruleswere based on the false notion thatsuch a market existed.

Pursuant to the new rules, theexpropriated properties will beappraised by reference to transac-tions of properties similar to theexpropriated property, taking intoaccount its usage.

This seems to be much more rea-sonable and fair solution, although itmay cause discontent among owners ofexpropriated properties, since it isexpected that the new rules will meanthat the land is appraised at a lowervalue.●

New laws in2012: what to expect ➡ Continued from p. 15The new regulations aim torestrict the unfair competi-tion between transport andlogistics companies andimplement a new system offines for irregularities detect-ed by Road Transport Inspec-tion. The new system pro-vides for different levels offines depending on the size ofthe transport company, whichseems to be a much fairersolution than the current sys-tem.

There won’t be much newswhen it comes to regulationsof real properties. The mainchanges will relate to new,much friendlier rules for theintroduction of updated per-petual usufruct annual fees, aswell as new rules of appraisalof real properties expropriatedfor road purposes.

Changes are also expectedas of the end of 2012 on theinsurance market. The Euro-pean Court of Justice hasresolved that insurance com-panies can no longer differ-entiate insurance premiumsbased on the sex of the client.This will result in a signifi-cant increase of premiumsfor women, who used to paylower premiums, especiallywhen it comes to life andmotor insurances.

Unfortunately, the highhopes related to the previouslyplanned revolutionary changesto the Construction Law andthe Spatial Planning Law

ended in disappointment. Thecrucial amendment to theConstruction Law abolishingbuilding permits was finallyrejected by the ConstitutionalTribunal in May 2011 and willnot come into force.

On the opposite side, itseems that after four years ofbeing reworked in the Ministryof Infrastructure, a majoramendment to the SpatialPlanning Law aiming to abol-ish decisions on conditions fordevelopment (decyzja WZ)and the introduction of so-called “local urban regula-tions” has been put on theshelf. As a result, no crucialchanges to the broadly criti-cized construction and zoningregulations are expected in2012, which is not good newsfor developers.

When construction is con-cerned, the government’shighway construction pro-gram must be mentioned.After the big boom of roadtenders in 2008-2011, thegovernment has cut the ambi-tious highway constructionprogram in 2011 and as aresult quite a few new tendersare expected in 2012.

Although the simplifiedprocedures for road location,construction and expropria-tion of properties work well,the environmental restrictionsimposed by EU are, besidescost, the main obstacle in thedevelopment of the Polishhighway network. ●

BROUGHT TO YOU BY MAGNUSSON

DEC 19, 2011 – JAN 8, 2012LAW IN POLAND18 www.wbj.pl

Karolina Gutt-Mostowyattorney-at-law, Magnussonkarolina.gutt-mostowy@magnussonlaw.com

OnMay 16, 2011, a brand newAct on Private Interna-tional Law came into force

in Poland. The new act replaced theold one, which was dated all the wayfrom November 12, 1965.

Private international law answersthe question of which law applieswhen multiple jurisdictions areinvolved. Its rules typically apply whena legal dispute has a foreign elementsuch as a party to the dispute being aforeign citizen or in case a contract issigned by parties located in differentcountries.

Private international law has

become hugely important due to theeconomic growth and internationalmobility of people and companies.The need for a new act on privateinternational law was urgent sincethe old act did not comply will thedynamic growth of modern societyand was full of gaps. The new lawaims to comply with EuropeanUnion regulations.

Much widerThe act stipulates, in particular, whichlaws apply in cases of personal law,family, marriage and inheritance, aswell as in cases related to companiesand business entities, and when con-ducting contracts and other legal acts.The new regulation is much widerthan the old one; it covers issues relat-

ed to arbitration agreements, intellec-tual property, power of attorney,moral rights of persons and entities,incapacitation of persons and issuesrelated changes in the value of a cur-rency connected with the amount of aparticular debt.

A significant change when it comesto laws applicable to physical personsis the introduction of the concept of a“country of usual stay.” In the case ofa person whose citizenship is unknownor who has no citizenship at all, thelaw of the country of residence willapply, and in case of a lack of resi-dence, it is the law of the country ofusual stay that will apply. Moreover,the law of the country of residence orusual stay will also apply to personswho have lost their legal bonds with

their home country due to breach ofhuman rights in that country.

An important change in the newact is that it introduces the possibilityto choose the law (Polish or foreign)which will apply to legal relations.The number of cases when partiesare able to choose the applicable lawhas significantly increased. At pres-ent, the parties may decide on thejurisdiction not only when it comes tocontracts, but also when it comes tonon-contractual obligations such aspower of attorney, inheritance ormarriage contracts. In order to bevalid, the choice of jurisdiction needsto be explicit or clearly result fromthe circumstances.

The new regulation of the lawapplicable to power of attorney corre-

sponds to the needs of internationalbusiness relations. The legal relationsof a power of attorney will be subject tothe law chosen by the person gratingthe power of attorney. Before thirdparties, the proxy may refer to the cho-sen law only when the third party knewor might have easily known about thechoice of the applicable law. Whenprincipal has not chosen the applicablelaw, the law of the country where proxyusually operates will apply.

With respect to contractual obliga-tions, the new act introduces informa-tional provisions which send back tothe law of the EU. According to theact, in case of contractual obligations,the applicable law is stated in Euro-pean Parliament and Council regula-tions Rome I and Rome II. ●

New private international law

Zuzanna WencelMagnussonzuzanna.wencel@magnussonlaw.com

T his year brought some signif-icant changes with regard toconditions for business activ-

ity in Poland, with 2012 also set tosee more changes regarding theactivity of entrepreneurs come intoeffect.

It was Polish lawmakers’ inten-tion to introduce different rulesregarding the business activity ofentrepreneurs and get closer toEuropean standards, and this led tothe introduction of so-called de-reg-ulatory packages. These bills con-tain a wide range of amendments tomany different legal acts. Lawmak-ers also passed certain amendmentsto the Freedom of Economic Activi-ty Act.

Changes already in forceAs a result of the above legislation,the requirement to submit over 200various certificates to the administra-tive agencies was abolished. Current-ly an entrepreneur is able to substi-tute a relevant certificate with anappropriate statement. That shouldlower the costs of doing business,since obtaining such certificatesrequires the payment of a fee.

An administrative agency thatdemands a certificate from itsclient has to present a legal basisfor such a demand. An abolition inthis area includes, among othercertificates, those for tax ID andREGON numbers, and certificateson entry to the register of businessactivity or to the National CourtRegister. In addition, submission ofcopies of certain documents, suchas public registry records and diplo-

mas, instead of originals, has alsobecome possible.

Furthermore, since July 2011 thecosts of registering and makingchanges in the National Court Registerhave been lowered for entrepreneurs.

Revolutionary change was alsomade in the Polish Code of Commer-cial Companies. Specifically, individ-ual entrepreneurs now have the pos-sibility to register as a one-personcapital company – a limited liabilitycompany or a joint-stock company.All of the rights and obligations, per-missions, licenses and concessions aretransferred to the newly establishedcapital company.

Moreover, procedures in the areaof individual business activity havebecome more customer-friendly. Pol-ish lawmakers have decided to createthe Central Register and Informationon Business Activity and, as a result,

individual entrepreneurs have theability to deal with issues regardingtheir business activity in every com-mune (gmina) office in Poland and inevery district office in the capital cityWarsaw. Most of the proceduresunder the framework of the afore-mentioned register are carried outelectronically, therefore formalitiesare reduced to a minimum.

Upcoming changesA number of important amendmentsto different legal acts will also comeinto effect on January 1 2012. Amongother measures, lawmakers have decid-ed to prolong the term for employeesto use the previous year’s vacationleave to September 30, instead of theprevious date of March 31. The ruleson the liquidation of a branch of a for-eign business will change significantlyas well. In addition, the limitation peri-

od for payment of social insurance pre-miums will be shortened from 10 to fiveyears, which is definitely favorable forentrepreneurs.

The real innovation is that Polishcitizens leading individual businessactivity abroad will be recognized as aforeign entrepreneurs, enabling themto register a branch or an agencyunder Polish law.

Some of the amendments alreadyin force are fulfilling their intendedfunctions perfectly, others are howev-er not so effective. Whether theamendments which come into effecton January 1 are going to satisfyhopes set on it is still unknown.

In general, legislators’ attempts tochange the conditions for carrying outbusiness activity in Poland should beseen in a positive light, especially sincePolish law is still not currently per-ceived as entrepreneur-friendly. ●

Business activity in Poland:Polish law going in a good direction

BROUGHT TO YOU BY MAGNUSSON

Tomasz Rysiaklegal advisorMagnussontomasz.rysiak@magnussonlaw.com

Incontrast to previous years,Poland’s parliament has notdecided to implement signifi-

cant changes to the Polish tax systemstarting from January 1, 2012. Themost interesting amendment is achange in the manner in which entre-preneurs have to pay advance taxpayments for the final period (monthor quarter) of a given tax year.

Before January 1, 2012, theadvance tax payment referring toDecember (or to the last quarter of agiven year), was paid at the same rateand according to the same deadlineset for advance tax payments thatapplied in November (or the thirdquarter of a given year).

This often led to the artificial cre-ation of significant tax costs in

November or the third quarter. Italso negatively influenced entrepre-neurs’ cash flow.

Starting from the beginning of thenew year, advance tax payments forall months (or quarters) are subjectto similar rules. Consequently, all taxadvance payments should be paid bythe 20th day of the month followingthat in which the income wasobtained and at a rate calculated for agiven month.

Significant rulingsDespite the fact that Poland’s parlia-ment has not been particularly activein terms of amending the Polish taxsystem, taxpayers still had to beupdated about ongoing tax develop-ments, since a number of court rul-ings issued in 2011 have had a signifi-cant influence on both the Polish andEuropean Union tax systems.

One issue which was widely dis-cussed during 2011 was that of the

taxation of an employee’s income,and in particular on the taxation ofprivate health care financed byemployers. This discussion was finallyresolved by a resolution of theSupreme Administrative Court as ofOctober 24, in which the court con-firmed that the value of privatehealth care financed by the employershould be considered as part of theemployee’s income, subject to pro-gressive income tax rates. Since theamount of an employee’s taxableincome is also the base amount forcalculating social security contribu-tions, the value of private health careshould also be subject to social secu-rity contributions.

Another court ruling whichdeserves a mention is that made by theRegional Administrative Court inGdaƒsk on January 25, 2011. Accord-ing to the VAT act, in order to correctthe amount of declared VAT, the tax-payer needs to receive confirmation

that the contractor of the taxpayerreceived the correction invoice. This isparticularly troublesome for taxpayerswho issue a large number of invoices,in which case the obligation to obtainconfirmation of receipt of a correctioninvoice results in a significant amountof paperwork. In some cases, it may beimpossible to obtain all the requiredconfirmations that correction invoiceswere received. The Regional Adminis-trative Court’s ruling, once again con-firmed that such a requirement is notin line with the VAT Directive.

At this moment, the ruling is notyet final. However, since the SupremeAdministrative Court has on numer-ous occasions presented the samestandpoint as the Regional Adminis-trative Court in Gdaƒsk, it may beassumed that the Supreme Adminis-trative Court will do so again.

Doubtful debtThe final ruling that I will mention is

one which was passed by the Euro-pean Court of Justice on October 27,2011. The ruling refers to the issue ofVAT implications related to thetransfer of doubtful debts foramounts that are below the nominalvalue of the debt. According to Polishpractice, such transactions wereviewed as a service performed by thebuyer for the benefit of the seller.

Since such a service performed bythe buyer was subject to VAT, thebuyer of a doubtful debt was notobliged to pay a transaction tax onthe purchase of the said debt.

The ruling stated that the transferof doubtful debt for the value belowthe nominal value of the debt is notsubject to VAT. The outcome of theECJ ruling means that, under Polishlaw, the transaction of sale of doubt-ful debt may be subject to a transac-tion tax, which causes an additionalcost for the parties involved in thetransaction. ●

Tax law: some important developments

The 12-storey officecomplex is planned tobe completed in May2013

Developer Ablon Group haslaunched construction on itsKarolkowa Business Parkoffice building in Warsaw’sWola district. The project,which will cost €20 million, isset to be completed in May2013, the developer wrote in astatement.

The 12-storey class-A officebuilding will offer 15,000 sqmof usable space with 3,200 sqmdedicated to commercial andentertainment purposes. Therewill also be 260 parking spacesin an underground car park, aswell as 2,500 sqm of greenspace on the roof and in thesurrounding area.

When completed, thescheme will have excellentpublic transport connections

since it will be sited near thesoon-to-be built RondoDaszyƒskiego metro station,and directly next to bus andtram stops.

“Ablon uses its experiencein providing intelligent build-ing solutions, backed by thehighest standard of technologyand exemplary design. Thebuilding will be finished in topquality materials to ensure itsefficiency and elegance andflexibility of space arrange-ment,” Avi Goldenberg, coun-try manager for Ablon, said inthe statement.

In addition, KarolkowaBusiness Park will aim toreduce energy consumption byproviding “access to daylightwhich will prevent the overuseof artificial lighting,” Ablonwrote. Moreover, waste-man-agement systems will be imple-mented.

Izabela Depczyk

LOKALE IMMOBILIAW 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 • DEC 19, 2011 – JAN 8, 2012, LI 16/50-51

Retail Provider

and PKP

in talks

Developer Retail Provider

began cooperation

negotiations with Polish

State Railways (PKP)

over the planned

Integrated

Communication Center in

Olsztyn. The development

will combine a shopping

mall with a modern train

and bus station. The plan

is to construct a modern

shopping mall

comprising 45,000 sqm of

gross leasable area, as

well as entertainment

facilities. The scheme is

based on similar projects

being carried out in

Katowice and Poznaƒ.

Osiedle

Ksià˝´ce

apartments

leased

Energomonta˝-Po∏udnie,

the developer of the

Osiedle Ksià˝´ce

neighborhood in Katowice,

will lease out apartments

in the scheme to

companies to use as office

space. Currently, there are

two- and three-room

apartments available to

rent. “We are assuming

that the decreasing

availability of credit [to

buy an apartment] will

spark growth in the

apartment-renting

market,” Rados∏aw

Kamiƒski, the vice

president of

Energomonta˝-Po∏udnie’s

management board, said

in a statement. ●

Land transactions

HB Reavis interestedin Inflancka plot?The land in questionwas sold for a recordamount in 2006

Slovakian developer HBReavis is reportedly eying a2.5-hectare plot in Warsawwhich Spanish developerLubasa previously acquiredfor a record price of z∏.391 mil-lion in 2006. The two compa-nies are in the process of final-izing talks concerning the land,Gazeta Wyborcza reported.

Roman Karabelli, aspokesperson for HB Reavis,said he could neither confirmor deny the report. “All I cansay is that this particular site isamong several others on ouracquisition radar,” Mr Kara-

belli told Lokale Immobilia.The 2006 sale of the plot in

question, which is located onul. Inflancka on the site of aformer bus depot, set a recordprice per square meter of landin Warsaw. City Hall firstdecided to put the plot of landup for sale at a price of z∏.155million.

Developer Echo Invest-ment immediately offeredz∏.124 million more than that.That company and Lubasathen entered a bidding war.Ultimately, the Spanish devel-oper won, paying z∏.13,600 persqm, more than twice theaverage price that was paid forland in Warsaw at the time.

Lubasa was planning a

large residential investment onthe acquired plot. However, in2008 the crisis came and realestate prices fell. The companythen wanted to build an officebuilding on part of the landbut construction on thescheme was never launched.

If HB Reavis buys theInflancka plot in the immedi-ate future, it will be the sec-ond Warsaw land purchase itwill have made in recentmonths. The company recent-ly signed a z∏.171 million con-tract with PKP concerning thepurchase of land located atthe intersection of Warsaw’sAl. Jana Paw∏a II and ul.Chmielna.

Veronika Joy

Atrium acquiresSzczecin mall for €55 millionAtrium European RealEstate has acquired theMolo shopping center inSzczecin, Zachodniopo-morskie voivodship, fromPFCE Soparfi A, a realestate fund managed byCBRE Global Investors.The value of the transaction,in which Atrium was advisedby Jones Lang LaSalle,amounts to €55 million.

Built in 2000, the Molodevelopment last yearunderwent a €10 millionrefurbishment and extensionand currently offers over28,000 sqm of GLA. Thisincludes over 26,000 sqm of

retail space, more than 500sqm of office space, over 200sqm of storage space and a1,200-sqm Carrefour petrolstation.

Located close to the Pol-ish-German border, theshopping center is fullyleased out with Carrefourand Media Markt being theanchor tenants. Other majortenants in the mall are Pol-ish and international fo-otwear and clothes brandsincluding Deichmann,H&M, TK Maxx, Cubus,New Yorker, Cropp Townand Reserved.

Adam Zdrodowski

Karolkowa Business Park . . . .19

HB Reavis eyes land . . . . . . . . .19

Atrium buys Szczecin mall . . .19

Property market in 2012 . . .20-21

New Hochtief offices . . . . . . . .23

McKinlay malls . . . . . . . . . . . . . .23

Enterprise Park topped out . . .23

Property-related stocks . . . . . .23

In this issue

2320-21

Lokale Immobilia takes a lookat the prospects for the Polishreal estate market in 2012

Hochtief has received a greenlight for its Ma∏achowskiSquare project in Warsaw

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Karolkowa Business Park will offer 15,000 sqm of usable space

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

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

Office space

Ablon Group starts constructionon Karolkowa Business Park

DEC 19, 2011 – JAN 8, 2012LOKALE IMMOBILIA – REAL ESTATE20 www.wbj.pl

Rank Progress

sells plots

Real estate developer

and investor Rank

Progress has sold four

undeveloped plots,

including agricultural

land and roads, in Opole

and Zawada, Opolskie

voivodship, to IKEA

Property Poland. The

value of the transaction,

in which IKEA acquired a

100% stake in Rank

Progress subsidiary

Progress VI, which owns

the land, amounted to

more than z∏.39.3 million.

Goodman

builds for

Schenker

Logistics

Industrial space

developer Goodman

Group will construct a

built-to-suit cross-dock

facility at its Kraków

Airport Logistics Centre

for logistics operator DB

Schenker Logistics.

Construction on the

6,554-sqm scheme,

which Schenker has

leased for 10 years, has

already launched and is

scheduled to finish in May

2012. ●

We are breaking away from the typical building and renovation company stereotype. Our company is well recognized, experienced and employs professional team of specialists. Highest quality standards and the ability to always meet deadlines remains the uncompromised bench-mark of our workmanship achievements. Client satisfaction forms the foundation and core value of our business strategy. We know and under-stand that the expanding Clients’ expectations and needs define the direction in our business sector. The purpose of our work and service is to turn these into reality. The challenges we face every day are the source of motivation to improve all aspects of our business activity.

CREATING NEW REALITY.

General Construction WorksBuilding Installations SystemsComprehensive Interior FinishingCommercial, Retail and Residential Fit-OutsFrom Initial Concept Drawingsto Final Handovers and DocumentationProfessional and Experienced TeamsOn time & In budget delivery

Neo-ŚwiatRajmund WęgrzynekPaweł Brodzik Sp.j.

ul. Puławska 59702-885 Warszawat. +48 22 844 96 97t. +48 22 750 77 33f. +48 22 848 66 82

www.neo-swiat.com.plsekretariat@neo-swiat.com.pl

Property market in 2012

Mixed prospects forPolish property marketThe residentialsector’s outlook for2012 is relativelynegative, but the officemarket is sitting pretty

Next year may prove to be dif-ficult for some sectors of thePolish real estate market, butnot all of the market’s playersneed to be equally concerned.Lokale Immobilia asked lead-ing developers and analystsabout the prospects for resi-dential, office, retail and logis-tics properties in Poland in2012, and found some difficultchallenges in the residentialmarket, optimism in the officemarket, caution in retail andstability in logistics all lie ahead.

Residential difficultiesNext year could be a difficultone for Poland’s housing mar-ket. Factors which may have anegative impact on the sectorin 2012 include the generaleconomic uncertainty, which

will prevent some buyers frommaking the decision to pur-chase, as well as new restric-tions to bank lending, saidKazimierz Kirejczyk, presidentof the management board atresidential consultancy Reas.

A new Polish FinancialSupervision Authority recom-mendation coming into forcein January 2012 will further

restrict banks’ lending proce-dures, which will likely makesome potential apartment-buyers unable to take out amortgage loan. “Demand fornew apartments may decreasenext year,” Mr Kirejczyk said.

On the other hand, he

noted that those who havecreditworthiness or cash attheir disposal in 2012 will ben-efit from a large housing sup-ply and relatively attractiveprices. Meanwhile, the expect-ed difficulties will not neces-sarily hit developers as hard,since many have already start-ed to implement new strate-gies in preparation for toughertimes.

Andrzej Nizio, president ofthe management board ofdeveloper Marvipol, stressedthat reasonable developmentcompanies have alreadyreduced costs so that they cancontinue to generate satisfac-tory margins, even though theprices of residential propertiesin Poland are relatively lowtoday.

Pre-empting the introduc-tion of new, more restrictivelending regulations and thegovernment’s discontinuationof social programs, such devel-opers have already offeredhomes at attractive prices

which will continue to beacceptable to buyers and haveeven been able to increasetheir supply, Mr Nizio said.

He added that there arecurrently strong barriers in thedevelopment market to a fur-ther drop-off in prices. Henoted that labor costs arealready very low, there is nopossibility to further decrease

the price of construction mate-rials and owners are not will-ing to lower the prices of landthey sell.

Office optimismProspects are more optimisticfor the office sector, which isexpected to continue itsgrowth in 2012. Developersand sector analysts point out

Adam Zdrodowski

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TO

CK

Plenty of apartments in Poland could remain empty

“Next year couldbe a difficult one

for Poland’shousing market”

DEC 19, 2011 – JAN 8, 2012 LOKALE IMMOBILIA – REAL ESTATE www.wbj.pl 21

that demand for office spacein good locations has been onthe rise of late and that after aperiod of low developmentactivity during the crisis yearsmore and more of such space

is now being built.Konrad Heidinger, a con-

sultant at the research andconsultancy department ofCBRE in Poland, said there isno major risk of a slowdown

occurring on the demand side.He pointed out that asopposed to when the globaleconomic crisis hit, tenantstoday are bracing themselvesfor more difficult times aheadand as a result are more cau-tious when signing lease deals.

“This year will likely provea record one in terms of theamount of leased officespace,” Mr Heidinger said andadded that in Warsaw’s centralbusiness district, which is suf-fering from an undersupply ofmodern office space, develop-ers should not have problemswith securing tenants forplanned schemes.

Jacek Wachowicz, manage-ment board member and leaseand sales director at GlobeTrade Centre was of a similaropinion. “The short- and mid-term prospects for growth inthe office market in Polandare, even taking into consider-ation the adverse macroeco-nomic situation in Europe,quite good and the risk islower than in the other coun-tries of the region,” he said.

He added that the develop-er expects demand for officespace in attractive locations inWarsaw to remain strong nextyear and believes the situationin the other large Polish citieswill improve. Poland contin-ues to benefit from global costoptimization and BPO sectordevelopment trends, whichshould offset potential cuts inexpansion plans of tenants

from other sectors of theeconomy.

Cautious retailMore cautious in the upcom-ing months may be retail ten-ants, many of whom alreadyare, in the case of smaller citiesat least, carefully analyzingnew locations and looking forbargains. Tenants fear that thenext year will be risky, in par-ticular for those offeringupmarket and non-staplegoods, noted Tomasz Górski, asenior negotiator at the retaildepartment of Cushman &Wakefield.

Agata Brzeziƒska, leasingdirector at Neinver Polska,agreed, saying that increasedcaution in the market isalready visible and was reflect-ed by stable rent and vacancyrate levels in the second half ofthis year. In 2012, consumersare expected to be less willingto buy, Ms Brzezinska said.

In 2012, the volume ofcompleted retail space isexpected to decrease to300,000-350,000 sqm of GLA,from approximately 650,000sqm this year. According toCushman & Wakefield’s Górs-ki, retail parks, which are rela-tively cheap to built and offerrelatively low rents, will beincreasing their share in thetotal supply.

“Due to the limited newretail supply in 2012, retailchains wanting to continuetheir expansion and increase

their share in the market willbe more willing to choose loca-tions in smaller cities or lookfor space in specialized facili-ties including retail parks andconvenience centers,” NeinverPolska’s Brzeziƒska said.

Stable logisticsThe end of 2011 did not see adecrease in the lease of logis-tics space, said BartoszMierzwiak, vice president andmarket officer at Prologis inPoland. However, he admittedthat the condition of the Euro-pean economies and risingfuel prices will have an impacton logistics and may lead tolower demand.

According to Mr Mierzwiak,there should not be any drasticchange in demand for existinglogistics space in 2012. “Cur-rently, the amount of availablespace in Poland remains at asatisfactory level of approxi-mately 12 percent,” Mr Mierz-wiak said. He added that whenit comes to new investments,BTS facilities will continue tobe most popular with develop-ers in the upcoming months.

“In the upcoming year, wemay witness speculative invest-ments. However, built-to-suitprojects commissioned by aparticular tenant will prevail.Developers will continue tofocus on the lease of availablevacant space and on the devel-opment of their existing logis-tics parks,” Mr Mierzwiaksaid. ●

Point House

ready for

occupation

GN Invest, a

special-purpose vehicle

belonging to developer

Unidevelopment, has

officially finished

construction of its Point

House residential project

in Warsaw’s Mokotów

district. The

development, work on

which was started in

August 2010, has just

obtained an occupancy

permit with units now

being turned over to

owners.

Unilever

renews

Prologis lease

Food, personal care and

home care products

manufacturer Unilever

has signed a lease

renewal deal with

Prologis concerning

50,500 sqm of space at

the latter company’s

Prologis Park Piotrków

distribution park in

central Poland. The

transaction, which allows

Unilever to stay in the

park through 2017, was

brokered by Jones Lang

LaSalle. ●

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to remain strong next year

DEC 19, 2011 – JAN 8, 2012 LOKALE IMMOBILIA – REAL ESTATE www.wbj.pl 23

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

on Dec 15 (z∏. mln)

BUDIMEX 73.00 -0.82 64.00 109.20 -29.13 25,530,098 1,863.70

CELTIC 17.50 -7.89 15.55 60.55 N/A 34,068,252 596.19

DOMDEV 28.81 -5.82 23.50 50.80 -35.26 24,560,222 707.58

ECHO 3.31 -0.90 3.22 5.55 -35.35 420,000,000 1,390.20

ELBUDOWA 91.00 -5.11 90.50 170.00 -46.15 4,747,608 432.03

ENERGOPLD 2.00 -6.10 2.00 4.10 -48.72 70,972,001 141.94

ERBUD 16.23 0.81 14.70 61.00 -72.68 12,644,169 205.21

GANT 5.95 -2.30 5.95 17.60 -64.54 20,499,953 121.97

GTC 9.14 -5.77 8.64 24.98 -63.07 219,372,990 2,005.07

HBPOLSKA 0.72 -11.11 0.70 3.20 -77.50 210,558,445 151.60

JWCONSTR 5.38 23.39 4.36 16.96 -68.35 54,073,280 290.91

LCCORP 0.87 -2.25 0.85 1.69 -42.38 447,558,311 389.38

MARVIPOL 8.99 -0.44 7.22 11.00 -17.52 36,923,400 331.94

MIRBUD 2.20 -3.93 2.10 4.75 -48.72 75,000,000 165.00

MOSTALWAR 17.10 -10.56 17.10 62.95 -71.02 20,000,000 342.00

MOSTALZAB 1.27 3.25 1.07 3.05 -57.67 149,130,538 189.40

ORCOGROUP 15.24 1.60 14.19 40.00 -48.34 17,053,866 259.90

PBG 69.60 1.53 56.05 215.00 -68.06 14,295,000 994.93

PLAZACNTR 2.02 2.54 1.80 5.15 -54.50 297,174,515 600.29

POLAQUA 5.59 -9.25 5.59 20.60 -69.54 27,500,100 153.73

POLIMEXMS 1.56 9.09 1.23 4.07 -62.41 521,154,076 813.00

POLNORD 13.49 1.05 11.03 35.10 -61.84 23,798,439 321.04

RANKPROGR 8.88 -0.11 8.64 13.60 -15.83 37,145,050 329.85

ROBYG 1.13 0.89 1.04 2.13 -38.92 257,390,000 290.85

RONSON 0.90 -1.10 0.84 1.58 -37.06 272,360,000 245.12

TRAKCJA 1.14 -7.32 1.14 4.12 -73.11 232,105,480 264.60

ULMA 62.00 0.00 57.00 88.00 -24.85 5,255,632 325.85

UNIBEP 5.45 0.00 4.47 10.00 -43.70 33,927,184 184.90

WARIMPEX 3.64 -3.70 3.55 10.89 -60.56 54,000,000 196.56

ZUE 6.80 -8.11 6.80 14.54 -52.28 22,000,000 149.60

Property-related stocks

Restoration and renovation

Hochtief to renovate historicWarsaw tenement building

The investmentinvolves the creationof office and retailspace

Hochtief Development Polandhas been granted permission tolaunch its mixed-use Ma∏a-chowski Square project in War-saw. The development entailsthe renovation and expansionof a historic tenement buildingin central Warsaw and is set tooffer office and retail space.

The building, located on ul.Mazowiecka in the center of thecity, will be restored. Addition-

ally, a six-storey extension willbe built on to its eastern side.

A total area of 14,000 sqmwill be made available for lease.There will also be a two-levelunderground garage with 100parking spaces available fortenants’ use. The cost of theinvestment has not beenrevealed.

Office space in the buildingis planned as class-A and willhave the “highest quality finish-ing, state-of-the-art furnishingand equipment,” Hochtiefwrote in a statement.

The palace’s facade will be

restored to its “original appear-ance,” the company said,adding that it will restore exten-sive window panes on theground and first floors. Thescheme’s extension, however,will not be built in the image ofthe historic building, althoughthe developer said it will be har-monized with its urban sur-rounding.

Hochtief added that the his-toric building’s interior willundergo a thorough refurbish-ment to ensure it meets the“highest standards in modernoffice construction.” However,the decorative details of theinterior will be preserved andceiling heights will remain at upto four meters.

Warsaw’s Conservator ofHistoric Monuments was con-sulted on the building’s design.

“We are very proud of theopportunity to restore the truehistoric appearance of thatmagnificent building,” PiotrStark, general manager ofHochtief Development Polandsaid in the statement.

“Ma∏achowski Square willsoon become one of Warsaw’smost prestigious locations,” headded.

Izabela Depczyk

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The historic building will offer 14,000 sqm for lease

McKinlay to invest z∏.500 million

on building Multi Shop mallsMcKinlay Development hasannounced that it will investz∏.500 million on building adozen Multi Shop shoppingcenters, Polish media outletshave reported, citing companyrepresentatives. The combinedleasable area of the malls willamount to over 200,000 sqm,with the company set to buildthe first 10 over a period of fiveyears.

One of the biggest will bebuilt near ̊ ywiec, in south-cen-

tral Poland. Situated on 10hectares of land, it will providearound 40,000 sqm of leasablespace. The first Multi Shop willbe built in Sochaczew, centralPoland. The other shoppingcenters will be constructed inCiechanów, I∏awa, Sieradz,WrzeÊnia, Jelenia Góra,Wyszków, Skawina, Bochnia,Brzesko and M∏awa.

The projects are to be char-acterized by easy access, bigparking lots, low maintenance

costs and modern architecture.Each development will also

have a section dedicated toDIY products. In Sochaczew,the DIY-dedicated space willbe rented by building equip-ment company OBI. The chainis interested in renting outspace in other McKinlay Devel-opment investments. Buildingequipment store Castorama hasalso expressed an interest inrenting space in one of theMulti Shop malls. ID

First two buildings in Enterprise

Park Kraków topped outAvestus Real Estate hastopped out two of the threebuildings that make up itsEnterprise Park office andretail development in Kraków.The investment is the compa-ny’s first in the city.

Buildings A and B, whichcomprise a total of 15,000sqm of office space, are set tobe delivered in September2012. Ultimately the park willoffer commercial and retailspace in three four-storeyclass-A facilities. The struc-tures will include heating,ventilation and air-condition-ing installations, security sys-

tems, raised floors, suspend-ed ceilings and areas withstrengthened floors for serverrooms.

The park will also have arestaurant, a child-care facilityand a medical center. The proj-ect has already been BREEAMpre-certified, achieving a levelof “very good.”

“[The] facade and internalsystems will be installed aswell as other finishing works.... Besides setting up lanes,walkways, bicycle paths andparking lots around the firsttwo buildings, it will alsoinvolve the planting of trees

and bushes,” ArkadiuszKrupa, project manager atAvestus Real Estate, said in astatement.

The site’s third building isset to be topped out in 2013,Maciej Go∏´biewski, the leas-ing and marketing director atAvestus Real Estate toldLokale Immobilia.

Financing for the projecthas been secured from Raif-feisen Bank Poland, with theproject being developed on aspeculative basis. EiffageBudownictwo Mitex is thegeneral contractor.

Izabela Depczyk

Acting on behalf of the Zachodniopomorskie Voivod Office we are awaiting offers concerning the lease or sale of office space with parking spaces to be used

as new consolidated offices of the Zachodniopomorskie Voivod Office

The building is at least a class-B facility

Location of the building – Szczecin

Availability of the building – from 2015 at the latest

Transportation – proximity to major transportation junctions

Available usable space – minimum 12,000 sqm

Offices located in one building are preferable. Office space located in maximum two buildings is acceptable as long as the buildings are located next to each other.

Preliminary offers concerning the availability of a property specified above (including planned investments) and including, in particular, the rent rate/purchase price per sqm, additional costs, location, availability, transportation accessibility and total area of the property should be submitted by December 29, 2011.

Additional information expected: add-on factor, expected lease period, indexation, currency, terms of the future lease/purchase agreement, availability of parking spaces, potential rent-free period, other incentives, etc.

or by e-mail to: biuro@dsconsulting.com.plMore information can be obtained on www.dsconsulting.com.pl or from Anna Drozdowska at (058) 344 44 50, (058) 345 83 04 and (fax): (058) 344 44 49.

Offers should be sent to:DS Consulting Sp. z o.o.Gdańsk 80-266ul. Grunwaldzka 209

SPECIFICATIONS CONCERNING LOCATION AND STANDARD OF A POTENTIAL FACILITY:

WojewództwoZachodniopomorskie

DEC 19, 2011 – JAN 8, 2012INTERVIEW24 www.wbj.pl

Hungarian-Polish relations

A problem of perception

Ewa Boniecka: Due to ourclose and traditionally friend-ly mutual relations, Poland isparticularly concerned aboutthe present economic situa-tion in Hungary. How doesyour government plan to com-bat the crisis? Robert Kiss: The main point isto reduce public debt and thebudget deficit, because ourfinancial crisis is generallybased on a very uncomfortableatmosphere that has been gen-erated around Hungary. It is acredibility crisis rather than acrisis in a particular area of oureconomy. Yet credibility is notan objective criterion. If finan-cial markets, or the major play-ers in those markets, want tosay that you are not credible,you can do whatever you thinkis right, but they will still claimthat you are not credible.

So I think that the decisionof Moody’s to downgrade

Hungary’s credit rating is theresult of a general negativeapproach by financial marketsin how they deal with theEuropean financial crisis.Moody’s took a very strangestep because none of themacroeconomic factors in theHungarian economy supportthe kind of decision it made.Hungary still has positive eco-nomic growth – at 1.4 percentfor the third quarter of thisyear – its budget deficit islower than 3 percent of GDPand the government debt hasbeen cut by almost 10 percent.

Yet while pointing to thesefigures, I am not denying thatwe are facing serious financialand economic problems. WhatI want to emphasize, however,is that it is not solely our crisis,but a crisis of the whole EUfinancial system and also, insome ways, a crisis in the EU’spolitical domain.

Is your government changingits economic policy to dealwith the present situation?We are not changing ourwhole economic policy, butare instead adjusting it to thenew situation. Our govern-ment, which has a two-thirdsmajority in parliament and stillhas popular support, is in acomfortable position to imple-ment wide-ranging measureswhich would speed up thereform of the way Hungary isgoverned.

One of the priorities is pre-serving economic growth. Ourunemployment rate stands at10.7 percent, which is averagein the EU, but we are takingefforts to reduce it and inrecent months we have man-aged to increase the numberof employed by 40,000.

In a situation of rising bor-rowing costs, the governmentdecided to open talks with theIMF but our idea is not to askfor a loan, but to obtain anagreement about standbycredit, providing better securi-ty for our financial assets. Weare making some cuts to thebudget. However, the basicstrategy is not to make drasticcuts but rather to increase

budget revenues, hence, forinstance, the new regulationfor higher VAT. Altogetherour parliament has adopteddozens of regulations toreduce the amount of moneywasted on administration andhas presented draft bills con-cerning reforms to public andhigher education, as well asthe retirement system. Wehave already increased theretirement age for women andmen to 65 years.

How is the Hungarian crisisaffecting economic relationswith Poland?Our relations are a positivesurprise. The latest statisticsshow that until September thisyear, Polish exports to Hun-gary were worth €2.6 billionand Hungarian exports toPoland €1.97 billion. Polishexports have increased by 3.2percent in comparison to theprevious year, while Hungari-an exports to Poland havegrown by 13 percent. So in ourmutual economic relations weare going closer to – or per-haps even exceeding – thelevel of mutual trade which wehad in 2008, before the crisis.Poland is the seventh-largestforeign trading partner ofHungary (the largest for bothcountries is Germany).

What influence could theHungarian crisis have on theoverall position of Centraland Eastern European mem-bers of the EU?Let’s stick to the economy. Allmacroeconomic indicators arebetter in our region than any-where else in Europe. Whenyou compare Hungary’s eco-nomic position to those ofcountries in Southern Europe,it begs the question, why dofinancial markets treat Centraland Eastern European mem-bers as black sheep? I wouldlike to refer to the recentspeech by Polish Foreign Min-

ister Rados∏aw Sikorski inBerlin, because it is high timeto make people in the Westunderstand that it was notenlargement of the EU thatbrought the EU troubles. Onthe contrary, the Westerncountries gained a lot of eco-nomic benefits from it. Andnow, when the whole ofEurope is in trouble, all mem-bers should work in solidarityto escape from this crisis.

Let’s talk about foreign policy.How can the Visegrad Group,which links our countries,together with Slovakia andCzech Republic, influenceEuropean Union policy duringthis time of change in the waythe EU works?The Visegrad Group is alreadyinfluencing the policy of theEU, it is not just theory, it ishappening, and the VisegradGroup is a very good trade-mark in the whole of Europeanpolicy. It proves that the EU’s

new members are able to coop-erate among themselves andinfluence Brussels in its think-ing about the development ofthe Eastern Partnership. And Iwould emphasize that whenPoland, together with Sweden,initiated the Eastern Partner-ship program, it would neverhave become a part of EU pol-icy without the strong supportof the Visegrad Group.

Do you think that Polandshould play the role of leaderin our region?Yes, that would correspondwith what Minister Sikorski

said in Berlin, that Germanyhas responsibility and powerto change the situation in theEU, and I think that Poland,which has the strength andpolitical tools to organize ourregion, should play the lead-ing role in enlarging ourinfluence in the EU. I say“organizing,” because I don’tbelieve in leadership in 19th-century terms. I believe inleadership in terms of the 21st

century, which means organ-izing, taking responsibilityand helping to develop com-mon positions. Let’s remem-ber that the 20th century isover and in these new circum-stances leadership means – asthe Americans say – “smartpower,” which is the combi-nation of different possibili-ties that are related to thesize of a country, its econom-ic position, its historical expe-rience and its bilateral rela-tions with other countries. IfPoland aspires to the role ofleader in our region, it shouldlook at it as a huge responsi-bility.

The currency markets areknown for putting the forintand z∏oty in the same basket,meaning that when the Hun-garian currency loses value,so too does the z∏oty. How doyou see this situation and doyou think that our countriesshould adopt the euro atmore or less the same time? I do not see a reason why theforint and z∏oty should belinked. I know that it is aproblem for Poland, but thesituation is in my view a mat-ter of psychology, because thefinancial markets do not eval-uate our currencies properly.As far as the problem ofaccepting the euro by Hun-gary and Poland goes, I donot think we can harmonizethe timing – our countries willadopt it when each considersdoing so to be realistic. ●

Robert Kiss, the Republic of Hungary’sambassador to Poland, talks to WBJ about hisassessment of the European crisis and itsimpact on Hungary, the role of Central andEastern European countries in shaping theEuropean Union’s future and relations betweenHungary and Poland

SH

UT

TE

RS

TO

CK

The government in Budapest is unimpressed with Moody’s downgrade of Hungary’s

credit rating

“If Poland aspires tothe role of leader inour region, it shouldlook at it as a huge

responsibility”

DEC 19, 2011 – JAN 8, 2012THE LIST26 www.wbj.pl

Corporate Services

Catering CompaniesRanked by revenue from catering in 2010 www.bookoflists.pl

Rank

Company nameAddressTel./FaxE-mailWeb page

Revenuefrom catering

(z∏. mln)

Totalrevenue (z∏. mln)

Largest events catered (2010-2011):Number of participants

Com

pany

activi

ty:

Cate

ring /

Rest

aura

nt

/C

ante

en o

pera

tor

Banquets

with

wait s

taff

/M

ass

eve

nts

Buff

et

/B

ar

/S

morg

asb

ord

Type of cuisine Other services offered

Total number ofcatering

employees /Full-time

employees /Year founded

ChefTop local executive /

Title

1 Sodexo Polska Sp. z o.o.Al. Jerozolimskie 172, 02-486 Warsaw22 338-9600/22 338-9601info.fms.pl@sodexo.comwww.sodexo.com

WND81.877.188.2

WND205.2188.2180.7

Indoor field hockey world championship: WND; Filtersof Tomorrow (ITM plant open days): 1,000; welcome

party for new trainees in Citi Handlowy: 230; BREBank (Christmas Eve): 100

✓✓✓

✓✓

✓✓✓

All types of cuisine

Full food service: on-site canteens;catering; business banquets and

conference organization; meals to go;lunch delivery; vending machines;health-care nutrition service; food

service for schools

8442,0031993

WND Yann GontardManaging Director

2

Eurest Poland Sp. z o.o.ul. Jana Olbrachta 94, 01-102 Warsaw22 463-4400/22 463-4444eurest.poland@eurest.plwww.eurest.pl

WND80.076.073.0

WND80.076.073.0

Picnic for clothing company: 1,000; Christmas partyfor fuel company: 900; Christmas party for cosmetics

company: 500

✓✓✓

✓✓

✓✓✓

Polish; regional;international; theme

Facility management

WNDWND1993

WND Robert ModzelewskiManaging Director

3

Impel Catering Sp. z o.o.ul. Âl´˝na 118, 53-111 Wroc∏aw71 780-9450/71 780-9511impelcatering@impel.plwww.impelcatering.pl

WND38.445.045.7

WNDWNDWNDWND

Symposion (banquet): 500; Marshall’s Office inWroc∏aw (catering service for trainings and Christmas

Eve): 1,200; Wy˝sza Szko∏a Bankowa (cateringservice for trainings and employee picnics): 3,000

✓✓✓

✓✓

✓✓✓

Traditional Polishcuisine; regional;

international; theme

Buffet service; party organization; giftbasket preparation and delivery

4734732000

WND Marek Ho∏ówkoPresident

4

P. Dussmann Sp. z o.o.ul. Kurpiƒskiego 55A, 02-733 Warsaw22 827-2290/22 827-2298dussmann@dussmann.plwww.dussmann.pl

10.520.018.015.0

24.548.043.229.4

Party for University of the Third Age: 170; outdoorevent and party for GROM: 550; Pomeranian Medical

University (Christmas Eve): 2,000; MEDISYSTEM(employee party): 240; St.Sophia Hospital (jubilee

banquet): 200

✓WNDWND

✓✓

✓-✓

WNDCatering for children; catering for

welfare centers; banquets; outdoorevents; employee canteens

4002001993

WND Pawe∏ SkwarczowskiPresident

5

MCC Mazurkas Conference Centre & Hotelul. Poznaƒska 177, 05-850 O˝arów Mazowiecki22 721-4747/22 721-4751kontakt@mazurkashotel.plwww.mazurkashotel.pl

8.116.315.015.0

WNDWNDWNDWND

IBE (scientific congress): 3,000; Business Centre Club(Grand Gala of Polish Business Leaders): 1,800; FM

Group (corporate meeting): 2,500; CISCO Expo (tradefair and conference event): 1,100; Ernst & Young

(Entrepreneur of the Year Gala): 350

✓✓-

✓✓

✓✓✓

Polish; Mediterranean;French

Sound; lighting; attractions

3051052001

Bart∏omiejCzerwiƒski

Andrzej BartkowskiPresident

6

Art’Impression Catering Sp. z o.o. ul. Kurczunkowska 170, 02-871 Warsaw22 736-2711/22 736-2712events@ai-catering.plwww.ai-catering.pl

2.55.34.03.6

WNDWNDWNDWND

Special Olympics 2010: 3,000; Polkomtel (picnic):1,000; Warsaw University of Technology Karnavauli

(ball): 800; Ministry of Regional Development(conference): 600; Gaz-System (Easter party): 350

✓✓✓

✓✓

✓✓✓

Polish; European;international

Arrangements; equipment; technicalservice; photographic service

8040

2004Barbara St´piƒska Wies∏aw Spodarzewski

President

7

L. Zapart CateringAl. Ujazdowskie 24, 00-478 Warsaw22 839-8795/22 839-8795biuro@zapart.plwww.zapart.pl

4.25.02.34.5

4.25.02.34.5

Inauguration of the Polish EU Presidency in TeatrWielki: WND

✓✓-

✓✓

✓✓✓

InternationalInterior design; food-service

equipment leasing; waiter services

50WND1991

Bogus∏aw Niemiec Lucyna ZapartWND

8

Party Serwis Catering Melon Sp.j.ul. Mineralna 20, 02-274 Warsaw22 644-2811/22 644-7025biuro@partyserwis.plwww.partyserwis.pl

2.84.94.54.2

WNDWNDWNDWND

Paszporty Polityki: 2,000; AVON (congress): 2,800;AVON (conference): 5,000; Warsaw City Hall -Warsaw Uprising: 3,500; Warsaw University of

Technology (congress): 6,000

✓✓✓

✓✓

✓✓✓

International; EuropeanTents; art direction; photographic

service

15030

1992Dariusz Oleszczuk Jan Melon

WND

9

Agencja Cateringowa Party Sp. z o.o.ul. Rakowiecka 36, 02-532 Warsaw22 849-8597/22 849-8597party@party.com.plwww.party.com.pl

1.52.32.52.9

1.62.42.52.9

E. Leclerc (banquet): 500; Agora (cocktail): 450;Building Research Institute (picnic): 350; GermanEmbassy (banquet): 250; European Commission

Representation in Poland (lunch and coffee break):250

✓--

✓✓

✓✓✓

Polish; European;international; theme

Organization of conferences andevents; tents; arrangements;

equipment; artistic setting; sound

7317

1992Robert Kaêmierczak

Ludwika Makowiec;El˝bieta Zielonka

Board Members

10

Lunch Service D. Cyran, P. Sobczakul. 11 Listopada 28 B, 05-816 Micha∏owice22 578-0880/22 213-3010catering@lunchservice.com.plwww.lunchservice.com.pl

1.22.22.22.5

1.22.22.22.5

ING (Christmas Eve): 580; Canal+ (employee party):500; Canal+ (Easter party): 550; Bank Handlowy (VIP

meeting): 80; TP (prestige meeting): 120

✓--

✓✓

✓✓✓

Polish; traditionalPolish; international

Full service: floral decorations,banquet chairs and tables, tents,

waiter services

2015

1995Dariusz Cyran

Dariusz Cyran; Piotr Sobczak

Owners

11

RSVP Kalinowski, Wysocki-Kalinowski Sp.j.ul. Laskowa 18, 05-420 Józefów22 773-7253/22 207-2087info@rsvpcatering.plwww.rsvpcatering.pl

0.41.41.21.2

0.41.41.21.2

PTO-EXPO (congress):1,800; XVII Locomotive Parade:500; Warsaw University (graduation): 500; the

biggest parachute party in Europe: 250; 4 events ofthe Chopin cycle: 1,200

✓--

✓✓

✓✓✓

Polish with internationalaccents; upon request

Equipment leasing; photographer; sitearrangement; party coordination;

wedding agency

204

2002Artur Pràtnicki

Tomasz Wysocki-Kalinowski;

Jacek KalinowskiWND

12

Sas Catering Krzysztof Kucharczykul. Deotymy 58/79, 01-409 Warsaw22 633-0918biuro@sascatering.plwww.sascatering.pl

0.81.21.51.3

WNDWNDWNDWND

International Congress of Radiation Research: 1,400;Scientific and Training Symposium of Institute ofCardiology: 1,000; event for transport company:

2,000; gala for Ministry of Sport and Tourism: 600;PTHK International Conference: 1,200

✓-✓

✓✓

✓✓✓

Polish; international;Italian; Mediterranean

WND

155

2000Marek Jagie∏∏o Krzysztof Kucharczyk

Owner

13

Restauracja Dom Polskiul. Francuska 11, 03-906 Warsaw22 616-2432/22 616-2488restauracjadompolski@wp.plwww.restauracjadompolski.pl

WND0.40.20.2

WNDWNDWNDWND

WND

✓✓-

✓-

✓✓✓

Polish; upon request WND

3035

1998

KatarzynaWasilewska

Miros∏aw WasilewskiWND

NR

Belvedere - Café ¸azienki Królewskie Sp. z o.o.ul. Agrykoli 1, 00-460 Warsaw22 558-6700/22 558-6777catering@belvedere.com.plwww.belvedere.com.pl

WNDWNDWNDWND

WNDWNDWNDWND

Economic Forum in Krynica: 3,000; Dom Polski forABC: 2,500; Arabian Horse Days: 1,500; Financial

Forum: 350; TVN Foundation Ball: 450

✓✓-

✓✓

✓✓✓

Polish; international;oriental; fusion; upon

request

Modern designer catering equipment;complex service

8525

1991Dariusz Muçko Artur Zymerman

General Manager

1st half of 2011 / 2010 /2009 / 2008

Event types served

DEC 19, 2011 – JAN 8, 2012 THE LIST www.wbj.pl 27

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research forThe List was done in November/December 2011. Number of employees and ownership structureare as of November 2011. All information pertains to the companies’ activities in Poland. Compa-nies not responding to our survey are not listed.

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

Rank

Company nameAddressTel./FaxE-mailWeb page

Revenuefrom catering

(z∏. mln)

Totalrevenue (z∏. mln)

Largest events catered (2010-2011):Number of participants

Com

pany

activi

ty:

Cate

ring /

Rest

aura

nt

/ C

ante

en

opera

tor

Banquets

with

wait s

taff

/M

ass

eve

nts

Buff

et

/B

ar

/S

morg

asb

ord

Type of cuisine Other services offered

Total number ofcatering

employees /Full-time

employees /Year founded

ChefTop local executive /

Title

NR

CASA ITALIA Sp. z o.o.ul. Âwi´tojerska 5/7, 00-236 Warsaw22 860-0255/22 860-0255info@de-signed.plwww.de-signed.pl

WNDWND

NANA

WNDWNDNANA

Inauguration of Tiziano painting: 250

✓✓-

✓-

✓-✓

Traditional Italiancuisine; Polish andfusion cuisine upon

request

Full-service catering; wine tasting;conferences; decoration; meal

delivery; wine shop

1012

2010Piotr Mielcarz Roberto Guastalla

Owner

NR

Kr´gliccy Restauracje i Cateringul. Foksal 17, 00-099 Warsaw22 826-0109/22 826-0109restauracje@kregliccy.plwww.kregliccy.pl

WNDWNDWNDWND

WNDWNDWNDWND

TVP Telekamery: 750; event for Centrum NaukiKopernik:1,000; FRONTEX: 600; Edipress Viva

Najpi´kniejsi: 300

WNDWNDWND

WNDWND

WNDWNDWND

All cuisines WND

WNDWND1988

WND WND

NR

O5 Sp. z o.o. ul. Wybrze˝e Gdyƒskie 4, 01-531 Warsaw22 560-3733/22 637-1502ask@moonsfera.plwww.moonsfera.pl

WNDWNDWNDWND

WNDWNDWNDWND

Events for Polski Komitet Olimpijski, Orange, T-Mobile,Plus, TP: WND

WNDWNDWND

✓✓

✓✓✓

International andoriginal

Event organization; culinary showsand workshops

321

2005

NorbertGo∏´biowski

Jaros∏aw UÊciƒskiWND

NR

Restauracje 99 Sp. z o.o. Al. Jana Paw∏a II 23, 00-854 Warsaw22 620-1999/22 620-1998restaurant99@restaurant99.comwww.restaurant99.com

WNDWNDWNDWND

WNDWNDWNDWND

Events for Maersk, Pfizer Polska, PSI Pharma,Eurobuild: WND

✓✓-

✓✓

✓✓✓

International; fusion;American; Polish

Equipment and furniture leasing;decoration; live music; lighting;

culinary shows; culinary lessons;realization of unconventional orders

1517

1997Ernest Jagodziƒski Karolina Then-Paszkowska

President

NR

Sheraton Catering Servicesul. B. Prusa 2, 00-493 Warsaw22 450-6100/22 450-6901magdalena.maciejewska@sheraton.comwww.sheratoncatering.pl

WNDWNDWNDWND

WNDWNDWNDWND

T-Mobile rebranding event: 4,000; Germany’sNational Day in German Embassy: 850; Russian

president’s visit in Presidential Palace: 130; EuropeanEconomic Congress: 1,000; Polish-German Economic

Summit: 700

WNDWNDWND

✓✓

✓✓✓

Mediterranean;international; oriental;

fusion; themeDecoration; equipment

WNDWND1997

Artur Grajber Thomas SchoenGeneral Director

NR

UBX Katowice Sp. z o.o.ul. Sokolska 24, 40-086 Katowice32 783-8100/32 783-8103info@angelo-katowice.plwww.angelo-katowice.pl

WNDWNDWNDWND

WNDWNDWNDWND

European Economic Congress: 1,500; Zjazd Krystyn:500; Otto Brenner Foundation: 400; memorial of H.J.

Wagner: 150

✓✓-

✓✓

✓✓✓

Fusion; regional;international;

Mediterranean; PolishService; equipment; cutlery

3030

2009Piotr Nadolski Tomasz Piórkowski

WND

NR

Villa Foksal Premium Catering Prominentis Sp. z o.o.ul. Marsza∏kowska 55/73, 00-676 Warsaw22 827-8716/22 826-5337info@restauracjavillafoksal.plwww.restauracjavillafoksal.pl

WNDWNDWNDWND

WNDWNDWNDWND

OBWE new headquarters opening: 300; Gwiazdy TVN- Politycy: 600; Warsaw Fashion Street Show: 500;World Telecom Day (banquet): 400; ConstitutionalTribunal of the Republic of Poland (banquet): 200

✓✓✓

✓✓

✓✓✓

International with Polishand Italian emphasis

Lighting; sound; art direction

5040

1992

GrzegorzWawrzyniak

Pawe∏ Chmielewski WND

1st half of 2011 / 2010 /2009 / 2008

Event types served

DEC 19, 2011 – JAN 8, 2012MARKETS28 www.wbj.pl

SO

UR

CE

: W

SE

PLN-EUR

4.51

95

4.52

55

4.56

00

4.56

42

4.54

81

4.50

94

09.1

2

12.1

2

13.1

2

14.1

2

15.1

2

16.1

2

4

5 PLN-USD

09.1

2

12.1

2

13.1

2

14.1

2

15.1

2

16.1

2

3.38

75

3.41

17

3.45

87

3.49

77

3.50

66

3.45

86

3.0

3.5

4.0 PLN-GBP

09.1

2

12.1

2

13.1

2

14.1

2

15.1

2

16.1

2

5.29

59

5.30

38

5.39

20

5.42

84

5.42

38

5.37

35

5

6 PLN-CHF

3.66

53

3.66

94

3.69

17

3.70

25

3.70

96

3.68

42

09.1

2

12.1

2

13.1

2

14.1

2

15.1

2

16.1

23.5

4.0 PLN-RUB

09.1

2

12.1

2

13.1

2

14.1

2

15.1

2

16.1

2

0.10

74

0.10

83

0.10

92

0.11

01

0.11

00

0.10

88

0.10

0.12 PLN-100JPY

09.1

2

12.1

2

13.1

2

14.1

2

15.1

2

16.1

2

4.35

72

4.38

20

4.44

34

4.48

72

4.49

42

4.44

25

4

5

currency rates

Euro zone

at risk

Currency report

Investors have not experi-enced such a volatile Decem-ber in a long time. Instead ofcalmly awaiting Christmas,they continue to be bom-barded with important dataand decisions.

The beginning of theweek of December 12-16proved that investors are dis-appointed with the EU sum-mit and its outcome. As aresult, rating agenciesannounced they are taking acloser look at the EU coun-tries with possible ratingdowngrades. Up till presstime, no decisions had beenmade as to which govern-ments would fund the IMFwith a total of €200 billion(the Czech Republic, Hun-gary, Romania, and the UKdid not confirm they wouldhelp, Russia might).

However, optimistic newscame from the US economy,

where macro readingsshowed an increase in theregional NY Fed and PhillyFed indicators, as well as adecrease in the weekly unem-ployment claims number to366,000, the lowest since Mayof 2008.

The EUR/USD continuedits downward path, tumblingto just below the $1.30 level(its lowest since January ofthis year) and recovering bythe end of the week to $1.31.

The z∏oty was hurt by theEU summit outcome, reach-ing z∏.4.59 against the euro (itshighest since May of 2009)and z∏.3.52 against the USdollar. During the second halfof the week the z∏oty recov-ered (EUR/PLN at z∏.4.49and USD/PLN at z∏.3.44) butas of press time, the chancethat the National Bank ofPoland would intervene wasvery high. ●

Adam Narczewski, X-TradeBrokers Dom Maklerski SA

SO

UR

CE

: N

BP

Major indices

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

DREWEX 0.23 27.78 2.28 0.16JWCONSTR 5.38 23.39 17.00 4.33TUEUROPA 185.20 22.73 222.70 145.00PBSFINANSE 0.49 22.50 1.77 0.32IGROUP 0.49 19.51 0.86 0.16

WIG 37,637.47 (December 15 close)

Change for the week: -2.17% 52-week high: 50,371.74

Change year to December 15: -21.01% 52-week low: 36,549.47

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

GETIN 6.92 9.15 15.29 6.02POLIMEXMS 1.56 9.09 4.18 1.19PGNIG 4.37 8.44 4.65 3.25CEZ 134.00 3.24 155.00 116.10PGE 20.48 2.20 25.07 15.98

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

RESBUD 3.46 -35.57 10.94 3.40NOVAKBM 13.00 -31.22 34.70 13.00PRONOX 0.10 -23.08 1.70 0.10JAGO 0.19 -20.83 1.14 0.15NORTCOAST 0.51 -20.31 1.79 0.50

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

KGHM 108.40 -12.23 200.30 105.00TVN 9.20 -6.88 18.53 8.90PKNORLEN 35.63 -6.21 58.85 30.33GTC 9.14 -5.77 25.19 8.56BRE 240.30 -5.76 357.90 203.30

WIG20 2,161.32 (December 15 close)

Change for the week: -2.28% 52-week high: 2,932.62

Change year to December 15: -21.54% 52-week low: 2,089.84

mWIG40 2,132.51 (December 15 close)

Change for the week: -2.25% 52-week high: 2,987.72

Change year to December 15: -24.05% 52-week low: 2,081.49

sWIG80 8,397.93 (December 15 close)

Change for the week: -1.72% 52-week high: 12,932.00

Change year to December 15: -31.44% 52-week low: 8,397.93

NewConnect 40.39 (December 15 close)

Change for the week: -2.18% 52-week high: 63.91

Change year to December 15: -36.30% 52-week low: 40.38

WIG-Banki 5,482.80 (December 15 close)

Change for the week: -0.88% 52-week high: 7,387.49

Change year to December 15: -21.25% 52-week low: 4,944.19

DJIA11,868.81 (Dec 15 close)

-1.07% (for the week)

CHANGE: 2.52%

(year to Dec 15)

52-week high: 12,876.00

52-week low: 10,404.49

NASDAQ2,541.01 (Dec 15 close)

-2.13% (for the week)

CHANGE: -5.07%

(year to Dec 15)

52-week high: 2,887.75

52-week low: 2,298.89

S&P5001,234.35 (Dec 15 close)

-0.82% (for the week)

CHANGE: -1.85%

(year to Dec 15)

52-week high: 1,370.58

52-week low: 1.074.77

FTSE1005,400.90 (Dec 15 close)

-1.51% (for the week)

CHANGE: -8.46%

(year to Dec 15)

52-week high: 6,105.80

52-week low: 4,791.00

DAX5,730.62 (Dec 15 close)

-2.45% (for the week)

CHANGE: -17.82%

(year to Dec 15)

52-week high: 7,600.41

52-week low: 4,965.80

NIKKEI2258,377.37 (Dec 15 close)

-3.31% (for the week)

CHANGE: -19.08%

(year to Dec 15)

52-week high: 10,891.60

52-week low: 8,135.79

world stock indices

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237,000

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2,140

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2,220

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2,300

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8,300

8,440

8,580

8,720

8,860

9,000

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Other indices

WIG extends

losses

Stocks report

The week of December 12-16 was another sluggish onefor most European stockmarkets, with the WSE’smain index, the WIG, shed-ding slightly more than 2percent. After hopes sur-faced of greater fiscal disci-pline in the euro zone, ques-tions regarding the legal cer-tainty of the pact, as well as asufficiently strong financialbackstop for the single cur-rency, troubled investors.

Monday, December 12,began poorly, after the chiefeconomist at ratings agencyStandard & Poor’s damp-ened moods by stating that areal financial shock would beneeded for the euro zone toget its act together. Through-out Europe bourses finisheddown. Tuesday, December13, saw further fears fromStandard & Poor’s, with theratings agency warning of a

possible downgrade to 15euro zone countries. Thoughmost of Europe closed in thered, the WIG gained 0.30percent.

Stocks fell further onWednesday, December 14,with risk aversion grippinginvestors. In Poland, PKNOrlen saw its share price fallby 3.22 percent. In the newson Wednesday was Getin,gaining over 8 percent afterit announced a 50 percentsale of insurer TU Europa toa consortium from Germanyand Japan.

On Thursday, December15, stocks had another mixedday, with KGHM tumblingover 10 percent after detailsemerged of the new tax on theexcavation of coal. The WIGfell nearly half a percent.Finally, on Friday, December16, the WIG closed 1.69 per-cent lower. ●

Andrew Nawrocki, WBJ market analyst

DEC 19, 2011 – JAN 8, 2012LIFESTYLE30 www.wbj.pl

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

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

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

Galeria 65 ul. Bema 65www.galeria65.com

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

Galeria Asymetria ul. Nowogrodzka 18awww.asymetria.eu

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

Galeria Milano Rondo Waszyngtona 2A (Praga)www.milano.arts.pl

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

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

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

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

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

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

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

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

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

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

Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl

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

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

Simonis Galleryul. Burakowska 9www.simonisgallery.com

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

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

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

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

Warsaw Philharmonic ul. Jasna 5www.filharmonia.pl

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

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

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

Museums, galleries and venues in Warsaw

January 1, 12 pmNew Year’s Concert – Chopin,Teatr Poloniaul. Marsza∏kowska 56Warsaw

For lovers of Poland’s great-est-ever classical pianist, Fry-deryk Chopin, Teatr Polniawill host an evening dedicat-

ed to the legend. Polishpianist Janusz Olejniczak,the man who provided thesoundtrack for the Oscarwinning film “The Pianist”which told the story ofW∏adys∏aw Szpilman’s sur-vival during WWII, will pro-vide the music.

Krystyna Janda will alsoread fragments of Chopin’slesser-known private letters,which will provide a perfectbackdrop to the piano playingof Mr Olejniczak. DI

For more information log on toteatrpolonia.pl

Concert

New Year’s Day with Chopin

New Year’s celebrationDecember 31Pl. KonstytucjiWarsaw

The capital’s historic Pl. Kon-stytucji will once again be thevenue for a free New Year’scelebration organized by theCity of Warsaw and Polsat.The theme for this year’sevent, which organizersexpect to be attended by as

many as 100,000 people, isthe 2012 European soccerchampionships. For that rea-son, the 60-by-20-meter stagewill be in the shape of a soc-cer ball, and Polish singerMaryla Rodowicz is set toperform her song “FootballFootball.”

Other performers includelegendary Polish rock groupD˝em, who have been a fixtureon the Polish music scene

since 1974, as well as Bracia,who are set to perform a coverof the Queen classic “We arethe Champions,” and thesinger and poet MaciejMaleƒczuk, also known as the“Bard of Krakow.”

The event will include afireworks display, with numer-ous outlets also set to providerefreshments and food forNew Year’s revelers.

DI

Event

Rocking in the New Year

The Great Orchestra ofChristmas Charity 2012National Stadium, al. Ksi´ciaJ. Poniatowskiego 1, Warsawand various locations around Poland

Jerzy Owsiak, who has beenraising millions of z∏oty forchildren’s charities each year

since 1993 with his GreatOrchestra of Christmas Chari-ty events, will this year host the20th anniversary celebrationfrom Warsaw’s newly complet-ed National Stadium.

The concerts and fund-rais-ing events are also set to takeplace all across Poland, with

numerous stars taking part,although the final lineup is yetto be confirmed. This year’sevent will raise money for life-saving equipment for babiesborn prematurely. DI

For more Information log on towosp.org.pl

Event

All for a good cause

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Janusz Olejniczak

DEC 19, 2011 – JAN 8, 2012 LAST WORD www.wbj.pl 31

Ticklish timing and things you can’t have

Tech Eye

Well this is awkward. Not awkward likeif your friend’s mom found you in hercloset, naked, with a sheep and a giantbottle of hot sauce. Not like that.

What Techeye has in mind isn’t in theBible under “Reasons Gomorrah Gotthe Holy Slap Down.” We’re referring tothe awkward timing of this column. Onthe one hand, it’s too close to Christmasto be of much use as gift inspiration,unless you’re like us, procrastinatinguntil the last minute then runningaround for presents like a kid who’sbeen freebasing chocolate.

On the other hand, there’s neverbeen a particularly strong demand for“New Year’s Eve” gadget guides. AndJanuary’s Consumer Electronics Show isdistant enough that the media blitz hasnot yet begun and fresh info on 2012’scoolest new toys is difficult to come by.

So here’s the deal: most of the itemshere are left over from previouscolumns. They’re things which somehowdidn’t fit and, anyway, you can’t buy yet.Not exactly the dregs of Tech Eye, butnot exactly not the dregs either.

Let’s start with the Little Printerfrom BERG Cloud (bergcloud.com), apicture of which has been sitting on ourcomputer desktop for weeks, staringcreepily out at us and generally plaguingour dreams until it came down to achoice: write aboutthe damned thingor hack the com-puter to deathwith an axe. Theformer solutionseemed lesscostly.

Its makerdescribes theLittle Printerthusly: “It’slike havingyour ownp r i n t i n gpress, news-paper and adog to fetch itfor you, all in yourfront room.” We’ll add a couple ofother descriptors: quirky, cute, inedible,not extremely useful. It can print birth-day reminders, daily puzzles, “publica-tions” (specialized RSS streams, basical-ly), to-do lists and so on. It might make a

nice analog-y source of info for techno-phobes, except that you need a degree oftechnical proficiency to set it up. Andthe average person able to set up a Little

Printer is presumably happy enoughusing, say, a smartphone.

Perhaps we’re being hasty. Thedevice is still in the alpha testing phase,with the beta phase and pre-orders

scheduled to begin in 2012. Plenty oftime left to come up with a raison d’être.Or not.

Then there’s the T1132N, which

soundslike thel o v e -

child of aTermina-

tor robot and Robert Duvall (in GeorgeLucas’ first film, of course). Sadly, it’snot quite that awesome.

The T1132N is actually a hybrid note-

book/tablet computer from Gigabyte(gigabyte.com), a company which madeits name with motherboards for gamingcomputers but has quietly branched intomore complicated products. The firm’slatest boasts an Intel Core i5-2467Mprocessor, an NVIDIA GeForceGT520M 1GB graphics card and an11.6-inch touchscreen. There’s also an“exclusive rotatable docking station” forwhen your T1132N just wants to sit andspin.

As it hasn’t hit the market yet andGigabyte is keeping quiet, there’s nopricing info yet. But somewherebetween $1,200 and the price of a homi-cidal robot is probably a good guess.

Speaking of which, the last item onTecheye’s agenda represents the lateststep in Man’s quest to create artificiallife which will some day arrive at the per-fectly rational decision that the extinc-tion of Man is in everyone’s best inter-est. Even so, the Nao Next Gen is soadorable that it’s hard to be mad at it. Infact, we want one right Nao.

Sorry, that was lame. Anyway, there’slittle chance of us getting our grubby,freebased-chocolate-covered hands onone. The Nao Next Gen is only for geeky

types at the moment – to get one youhave to join Aldebaran’s Developer Pro-gram, which involves paying a couplethousand dollars, presumably makingsome kind of intellectual contributionand generally suckling at the teat ofnerdliness.

Unfortunately Techeye is financiallyand intellectually destitute, and too outof shape to impress anyone with anovercompensatingly heroic feat of teat-sucklage. Which is a shame, becausethe Nao Next Gen is pretty cool. Itstands 23-inches tall, is equipped withan Intel Atom 1.6ghz CPU and has avocal-recognition program calledNuance which Aldebaran seems quiteproud of.

There’s also “fall manager” soft-ware, which helps protect Nao’s sensi-tive bits when it falls, but most exciting,in our opinion, is the “fist-bump” func-tionality. This is the first time we’veever seen anybody look less natural atthe fist bump than us.

And that, Dear Readers, is the kindof awkward which Techeye can appreci-ate. ●

Ever spent some quality time in your friend’s mom’s closet? Let us know: techeye.wbj@gmail.com

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

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

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The Little Printer

The Nao Next Gen