VOLUME 18, NUMBER 2 • JANUARY 16-22, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Still on the outsideSupport of a fiscal union hasn’t earned Poland

the right to take part in the most important

EU meetings 4

Since 1994 . Poland’s only business weekly in English

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Coal countryCoal countryWhile the rest of Europe movestowards reducing CO2 emissions,in Poland investments in coal-powered energy are ramping up

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Suicide missionPoland’s legal establishment was rocked

by the attempted suicide of military

prosecutor Miko∏aj Przyby∏ 3

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Which Polish companiesare likely to pay out thehighest dividends in 2012?

Does Poland deserve theEU’s praise on its debt-reduction measures?

A corruption scandalerupts over the granting ofshale-gas concessions

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

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

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

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

Tax . . . . . . . . . . . . . . . . . . . . . . . . . .10

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

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

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

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

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

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

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

REAL ESTATELokale Immobilia

• Warsaw Airport

reconstruction

• Azora buys offices

• Hitler’s headquarters

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Interview: Jan Bury

The leader of the

government’s minority

coalition partner talks

to WBJ about the

importance of

compromise 8-9

TerminalillnessThe controversy over

health care reforms

escalates 4

In this issue

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EU27

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Denmark

JANUARY 16-22, 2012NEWS2 www.wbj.pl

Former minister

sentenced over

martial law

Czes∏aw Kiszczak,

Poland’s interior minister

between 1981 and 1990,

was handed a two-year

suspended jail term for

his role in imposing

martial law in Poland on

December 13, 1981. The

communist leaders

responsible were part of

a criminal enterprise, a

Polish court ruled last

week. General Wojciech

Jaruzelski, Poland’s

leader at the time and

one of nine original

defendants, was excluded

from the case due to poor

health, along with three

others.

New setback

for Kubica

Polish Formula 1

champion Robert Kubica

suffered a new injury last

week when he broke his

ankle in a fall. Mr Kubica

is still recovering from

severe injuries sustained

in a near-fatal crash in a

rally last year. The driver,

who is currently without

a contract, missed the

entire 2011 season and

had already confirmed he

would not be ready for

the start of the 2012

season. This latest injury

could jeopardize the

chances of him ever

returning to F1

competition.

Taliban fighter

captured

US and Afghan special

forces have captured a

Taliban fighter suspected

of directing a roadside

bomb attack that killed

five Polish soldiers in

Afghanistan on December

21, 2011, reported Gazeta

Wyborcza. The Polish

soldiers, who came from

the 20th Mechanized

Brigade, were killed while

driving on a road through

the Ghazni province.

Alcohol prices

to increase

Alcohol prices are set to

rise in Poland’s

restaurants and pubs this

June because of the

country’s co-hosting of the

Euro 2012 soccer

championships, reported

Dziennik Gazeta Prawna.

Restaurant and hotel

owners are planning to

increase prices to take

advantage of soccer fans’

party mood and their

expected willingness to

spend money during this

summer’s event. ●

APA Kury∏owicz & Associates ..15

ArcelorMittal ..............................12

Asseco ..........................................6

Aurec Capital..............................18

Avon ............................................15

Azora Europa..............................18

Azora International Group ........18

B&B Hotels ................................18

Bank Zachodni WBK....................7

Buma Group ..............................18

Central Europe Energy Partners 13

CEZ ............................................12

Citi Handlowy ..............................6

Comarch ......................................6

Dalkia ........................................12

Danish Polish

Telecommunication Group ..........6

Deutsche Securities ....................6

Dunaferr ....................................12

Echo Investment ........................15

EDF ............................................13

EGIS ............................................15

Elektrownia Pó∏noc....................13

Emperia........................................3

Enea............................................13

Energa ........................................13

Estudio Lamela ..........................15

Everest Group ..............................6

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

GMF Warsaw Office ..................11

Grupa ......................................5 18

HSBC ............................................2

Idevices ......................................23

IMS Health ..................................6

InterHealth Canada ..................16

Ipopema Securities......................6

Jastrz´bska Spó∏ka W´glowa......5

Jones Lang LaSalle ..................18

JSW ............................................13

Kaye Scholer LLP ......................10

KGHM ..........................................6

Kulczyk Investments..................13

Lotos ..........................................13

Millennium Dom Maklerski ........6

Miller, Canfield, W. Babicki, A.

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

Mitsubishi ..................................15

Moeller Electric..........................15

Moody’s ........................................6

Moravia Steel ............................12

Motorola Solutions Polska ........18

New World Resources ..............12

Novo Nordisk ............................15

OBI..............................................15

Okam Capital ............................18

Pandora A/S ..............................15

Pekao............................................6

Peter Nielsen & Partners ........10

Petrolinvest ..................................3

PGE ........................................6, 12

PGNiG ..........................................8

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

PMR..............................................6

Poczta Polska Telefon i Telegraf ....6

Polish Airports State Enterprise..15

Project Syndicate ......................11

PZU ........................................6, 16

Rank Progress ..........................15

Ravenna Warszawa....................15

Ronson Development ................18

Solarfocus ..................................23

Soundmatters ............................23

Superhobby Market Budowlany 15

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

Tauron ........................................13

Telekomunikacja Polska..............6

U.S. Steel....................................12

UCEES ........................................18

Unibep ..................................15, 18

Vattenfall Heat Poland ................8

Verbund ......................................12

Voestalpine ................................12

Vuzix ..........................................23

Wardynski & Partners ..............10

Warsaw Stock Exchange ............6

Wood & Company ........................6

W´glokoks ..................................13

X-Trade Brokers

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

YES Airways................................15

While the European Commis-sion last week praised meas-ures implemented by Polandto cut its deficit, it was ratherless happy with fellow CEEnation Hungary. In fact, theEC singled out Hungary fornot having made sufficientprogress towards correcting itsdeficit and recommendedimplementing the next stage ofthe Excessive Deficit Proce-dure. As a result, the countrycould see cuts in EU subsidiesworth 1.7 percent of GDPstarting next year.

The Commission arguesthat although Hungary formal-ly adhered to requirements tokeep its 2011 deficit below 3percent of GDP, it managed todo so only thanks to unsustain-able one-off measures worthsome 10 percent of GDP. TheEC said these measures onlyserve to mask a “severe deteri-oration in the underlyingstructural balance.”

Those were not the onlyreproaches that came fromBrussels last week. Relationsbetween the EU andBudapest are becomingincreasingly tense after thegovernment of Prime MinisterViktor Orbán passed contro-versial changes to Hungary’sconstitution. According to theEC, the changes, which camein to force on January 1,undermine the independenceof the Constitutional Court,the central bank and the judi-ciary.

As WBJ went to press, theEC said it would rule by Jan-uary 17 on whether the consti-tutional changes were com-patible with EU law, andcould initiate legal actionagainst Hungary if it foundthey were not.

These concerns, in turn,are viewed as one of the mainobstacles for an IMF-EUbailout that Budapest is cur-

rently negotiating. Hungary’sfinances are in such bad shapethat the scenario of a sover-eign default “can no longer beruled out, especially if theHungarian government doesnot make serious concessionsto ensure investor confidencesoon and open the door forIMF-EU negotiations,” Dan-ske Bank analysts wrote at thebeginning of January.

The situation has scaredoff investors, causing Hun-gary’s currency, the forint, totank in the first week of Jan-uary. As the most-traded cur-rency in the region, the z∏otywas also affected. Both cur-rencies regained some groundat the end of last week, but thesituation in Hungary – theEU’s most indebted easternmember – is far from settled,and contagion to other coun-tries in Eastern Europeremains a possibility.

Alice Trudelle

25this Poland’s predicted position on a list of the world’s

largest economies in 2050, according to a reportreleased by HSBC. Poland is currently ranked 24th.

z∏.2.4 billion was the estimated market value of computer sales inPoland in 2011. Last year 3.4 million computers were

purchased.

9.33 million was the number of passengers handled by Warsaw

Chopin Airport in 2011. That’s 7.2% more than in 2010.

48this Warsaw’s position in a ranking of the world’s mostfrequently visited cities. Hong Kong, Singapore and

London made up the top three.

“You can’t win them all.”Prime Minister Donald Tusk responds to questions about Poland being excluded

from euro-zone summits in the latest draft of the EU’s fiscal union treaty.

Quote of the Week

Polish sport in 2012As Poland gears up for the 2012 European soccerchampionships WBJ.pl takes a look at some of thenames that are currently making the news in theworld of sport. Find out which Polish athletes wecan expect to see more of this year, by log ontoWBJ.pl.

On WBJ.pl

Numbers in the News

Company index

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JANUARY24-27 BUMASZEvent: This trade fair is a unique opportunity for

manufacturers and suppliers of machineryand construction equipment to establish newand maintain existing contacts with decisionmakers in the industry.

Location: Poznaƒ International Fair, bumasz.pl/en/

FEBRUARY3-5 MTT WROCLAW 2012Event: This event bills itself as the largest trade

exhibition in Poland devoted to the travel andtourism industry. It will feature a wide rangeof products and services relating to theindustry as well as major industry playersincluding tourist boards, resorts, travel clubs,

airlines, travel agencies, and many more.Location: Hala Stulecia, Wroc∏aw, mttwroclaw.pl/en

7 BRITISH-POLISH PPP FORUMEvent: Entitled “Wroc∏aw for partnership – experi-

ence, plans and prospects for cooperation”this event will feature several discussionpanels on public-private partnership inPoland and around the world. Hosted byeconomist Robert Gwiazdowski

Location: Hala Stulecia, Wroclaw, ppp.gov.pl

14 SHOPPING CENTER BUSINESS FORUMEvent: Now in its 14th edition, this event is an

opportunity to meet tenants and developersof commercial real estate. The organizer pro-vides access to web-based businessappointments between participants.

Location: Hilton Warsaw Hotel, scbf2012.retailnet.pl

January / February

DATELINE

HungaryIN THE SPOTLIGHT

Figures in focus

Tax burdensTotal tax revenue by member states in 2010 as a percentage ofGDP, selected EU27 countries (percentage)

Source: Central Statistical Office

JANUARY 16-22, 2012 NEWS www.wbj.pl 3

President

discusses US

visa waiver

Polish President

Bronislaw Komorowski

met last week in Warsaw

with US House of

Representatives

members Mark Kirk and

Mike Quigleyt, the co-

authors of legislation

designed to include

Poland in the US visa

waiver program. US

President Barack Obama

announced his support

for the legislation during

his visit to Poland in May

2011.

FDI to grow

5-8% in 2012

The amount of foreign

direct investment to

Poland should grow by 5-

8% this year compared to

2011, “assuming that the

global economy sees no

dramatic change.”

S∏awomir Majman,

president of the Polish

Information and Foreign

Investment Agency, told

the Polish Press Agency.

Total FDI for 2011 may

exceed €11 billion,

according to the Ministry

of Economy.

The end of

Emperia?

FMCG retailer Emperia,

which until recently was

one of the biggest trading

groups in Poland, will

conclude negotiations on

the sale of its retail

business by the end of

March, reported Parkiet,

citing unnamed sources.

“If the board is able to

finalize the sale of its

retail holdings and real

estate in 2012, the

company could distribute

its capital to shareholders

– through dividends and

shares – and cease to

exist in 2013,” said Kamil

Szlaga, an analyst at KBC

Securities.

Poland up in

freedom index

Poland was ranked 64th

in the 2012 Index of

Economic Freedom

published by The

Heritage Foundation and

The Wall Street Journal.

Poland’s score was 64.2.

That’s only 0.1 point

better than last year, but

it still allowed the

country to move up by

four places. As the

authors put it, this result

reflects an improvement

in freedom from

corruption that is offset

by a lower score for

government spending. ●

Shale gas

Shale gas search hit by corruption scandalSeven people havebeen charged withbribery in connectionwith the granting ofexploratory licenses

A total of seven people,among them Polish govern-ment officials, have beencharged with corruption relat-ed to the granting of licensesfor the exploration of shalegas on Polish territory.

Announcing the charges,Waldemar Tyl of the WarsawAppeals Prosecutor’s Officesaid tens of thousands of z∏otyin bribe money had beenexchanged in the second halfof 2011 alone.

Poland’s Internal SecurityAgency (ABW) arrested thesuspects last Tuesday as part

of an investigation into cor-ruption that was launched lastsummer.

“The seven people includethree Environment Ministryofficials, one from the PolishGeological Institute and threebusinessmen representingcompanies holding licensesfor shale gas exploration,” theABW said in a statement,without saying which firmswere involved.

One of the suspects head-ed the ministry departmentcharged with granting shalegas licenses, Polish mediareported.

Polish daily Gazeta Wybor-cza, citing its own inquiries,wrote that among the sevenare employees from Silurian, acompany which operatesunder the umbrella of Polish

oil and gas exploration com-pany Petrolinvest, whose prin-ciple owner is the well-knownbusinessman Ryszard Krauze.

Mr Tyl said the suspectsare facing allegations whichrelate to an article of Poland’spenal code dealing with publicofficials who engage in activi-ties aimed at bringing them-selves personal financial gain.Depending on the severity ofthe crime, such actions arepunishable by between sixmonths and eight years inprison.

A study from the US Ener-gy Information Administra-tion released in April last yearsuggests there could be recov-erable gas reserves of 5.3 tril-lion cubic meters beneath thesurface of Poland – the largestof any country in Europe. The

Polish government has so farissued over 100 licenses forthe exploration of unconven-tional gas deposits and hopes

production of shale gas forcommercial use can begin in2014.

Gareth Price

Prosecutors controversy

Suicide attempt reveals conflictamong Polish prosecutorsPoland’s system ofmilitary and civilianprosecutions wasthrust into thespotlight after acolonel shot himselflast week

Poland’s legal establishmentwas rocked last week whenColonel Miko∏aj Przyby∏, amilitary prosecutor, shot him-self in the head during a breakat a press conference in Poz-naƒ while journalists and tele-vision cameras were justmeters away. Colonel Przyby∏survived the suicide attempt,but its reverberations haveunveiled serious conflicts atthe heart of Poland’s system ofprosecution and compelledthe president and the primeminister to speak out regard-ing the controversy.

The incident occurred fol-lowing an impassioned state-ment to the press by ColonelPrzyby∏. In the statement, hedefended the actions of theMilitary Prosecutor’s Officein Poznaƒ during an investiga-tion into information leaksconcerning the 2010 Smolen-sk air crash disaster. Militaryprosecutors have beenaccused of illegally attempt-ing to access phone records ofjournalists covering the probeof the crash, in which PolishPresident Lech Kaczyƒski and95 others perished.

Colonel Przyby∏ insistedthat military prosecutors hadbroken no laws and that themedia was being manipulatedin a campaign to discredit theMilitary Prosecutor’s Office

so that it could be subsumedinto its civilian counterpart.This, he said, would lead tohis investigations into large-scale corruption in the mili-tary “getting lost in the sea ofcases” in the civilian prosecu-tor’s office.

He ended his statementsaying he would “defend thehonor of the Polish soldier,”and asked the journalists toleave the conference room sothat he could take a shortbreak. Moments later, a shotwas heard coming from theconference room and journal-ists rushed in to find him lyingin a pool of blood.

‘My hand shook’After being rushed to the hos-pital, it was discovered thatColonel Przyby∏ had shot him-

self through the cheek. Thenext day, he spoke to RadioZet, saying, “I put the pistolbarrel in my mouth but myhand shook because I saw thedoor handle move. A man whowanted to shift the cablessaved me … the bullet hit mycheek and didn’t go throughmy head.”

In several interviews andstatements to the media overthe next few days, Mr Przyby∏said he had been partiallymotivated by intimidationtactics taken against him dur-ing his corruption investiga-tions, including the slashingof his tires and the killing ofhis dog. He said that due tohis investigations into cor-ruption in the military, therewas a “million-z∏oty bounty”on his head.

Once Colonel Przyby∏ wasconsidered to be in stable con-dition, he was moved to thepsychiatric ward of the hospi-tal for further evaluation.

Prosecutors disagreeMr Przyby∏’s immediate supe-rior, General Krzysztof Parul-ski, told the media that heagreed with the statementsthe colonel had made at thepress conference, adding thatthe civilian prosecutor’soffice had acted “unethically”during its investigation intomilitary prosecutors’ at-tempts to obtain journalists’phone records.

However Poland’s topprosecutor, Prosecutor Gener-al Andrzej Seremet, said hedisagreed with Mr Przyby∏’saccount.

President against dismissalBoth Mr Seremet and GeneralParulski were summoned byPresident Bronis∏aw Komo-rowski to discuss the “structuralconflict” between the militaryand civil prosecutor’s offices.The president said afterwardsthat he didn’t think “personnelchanges” would solve the mat-ter, a sign that he disagreedwith those who were calling forthe general to be dismissed forhaving publicly criticized theProsecutor General.

Prime Minister DonaldTusk, however, seems to hold adifferent view. At a press con-ference on Wednesday, he saidhe was “absolutely certain” thatloyalty to one’s superior, espe-cially in an institution like theprosecutor’s office, had to be“indisputable.”

He added that if the twoprosecutors couldn’t worktogether, a solution would haveto be found. Many took thestatements as an indication thathe felt General Parulski shouldbe the one to go.

Nevertheless, the decisionis not the prime minister’s tomake. The Prosecutor Gener-al can only dismiss GeneralParulski with the approval ofthe defense minister and thepresident, who serves as com-mander-in-chief of the Polisharmed forces.

Considering President Ko-morowski’s initial statementson the issue, it seems GeneralParulski isn’t going anywhere,and the conflict between thetwo men, and the two institu-tions, looks set to continue.

Remi Adekoya

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Colonel Przyby∏ says there is a z∏.1 million bounty on his head

JANUARY 16-22, 2012NEWS4 www.wbj.pl

Fiscal union treaty

Poland to be excluded from euro-zonemeetings despite fiscal union support?A draft of Europe’sfiscal union treatykeeps Poland out ofkey decision-makingsummits

Despite its policy of striving toswim in what the governmentcalls the “European main-stream,” recently leaked draftsof Europe’s proposed fiscalunion treaty suggest thatPoland could be excludedfrom taking part in euro-zonesummits even after signing theagreement, reported the Pol-ish Press Agency, whichgained access to the docu-ments.

Prime Minister Donald Tuskand his government have madeclear that Poland’s goal is to beable to participate in euro-zone summits. The rationale isthat decisions made in thesemeetings also affect non-euro-zone EU members like Poland.

At a press conference lastWednesday, Mr Tusk respond-ed to questions about the reve-lations, admitting, “You can’t

win them all.” He added thatthe draft was not final, anddownplayed the potential neg-ative consequences for Polandif it is indeed excluded fromeuro-zone summits.

“We are not talking about adefeat. The final decision has

not yet been made. But this isnot a matter of ‘to be or not tobe’ for Poland,” Mr Tusk said.

A German proxy?Jan Filip Stani∏ko, a politicalanalyst at the Sobieski Insti-tute, said the government’sEurope policy was flawed, andthat Poland’s chances of beinginvited to the top table hadbeen remote from the start.

“The government has beenpresenting the picture of amuch stronger Poland in theEU than is the reality.

Poland’s fiscal fundamentalsare weak and politically itabandoned aspiring to the roleof regional leader for that ofGerman proxy,” he said.

“For the strategy to work,there would have to be a con-scious decision on the part of

Germany to pull Poland intothe big league – but such adecision doesn’t seem to havebeen made,” Mr Stani∏koadded.

He said that irrespective ofhow the Polish governmentpresents it, Poland is stillregarded as an Eastern Euro-pean country, “not the north-ern nation Mr Tusk is trying topretend it is … we are not Hol-land or Belgium,” he said.

On the sidelinesPoland is not the only one

unhappy with the way thingsare going in the negotiationssurrounding the fiscal union.

The European Parliamentrejected the latest draft out-right, with MEPs who repre-sent the EP in the grouppreparing the treaty saying in ajoint statement that it was“unacceptable.”

According to mediareports, the current draftstates that the European Par-liament president would notbe invited to the euro-zonesummits (as he is now) butwould only be “informed” ofdecisions made after themeetings had been concluded.This, analysts suggest, might

be one of the reasons why theEuropean Parliament hasopposed the latest draft sostrongly.

French President NicolasSarkozy recently said that hehopes the new fiscal unionagreement would be signed byMarch 1.

Remi Adekoya

“The government has been presenting thepicture of a much stronger Poland in the

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Prime Minister Tusk downplayed the potential negative consequences if Poland is

excluded from euro-zone summits

WOÂP set to breakfundraising record

Over 1.2 million people attend-ed finale events across Polandfor the 20th Great Orchestra ofChristmas Charity (WOÂP) inJanuary, helping the charity toraise what looks likely to be arecord amount.

Since its first edition in 1993,each year the charity has raisedmore money than the last. In itsfirst year, volunteers collectedz∏.2.42 million, while in 2011 thetotal amounted to z∏.47.2 mil-lion.

As WBJ went to press,WOÂP had gathered just overz∏.40 million, but expected tobreak last year’s record once alldonations have been counted.

During its 20-year history,

the Orchestra, headed by JurekOwsiak, has raised over z∏.0.5billion and helped around 650hospitals nationwide to pur-chase life-saving equipment. Inthe majority of cases these werehospitals and clinics which pro-vide health care for sick chil-dren.

This year WOÂP receivedz∏.8 million from the Ministry ofHealth, to be spent on purchas-ing cancer diagnosis equip-ment. Most other monies areearmarked for the purchase ofmedical devices for prematurebabies and insulin pumps forpregnant women who sufferfrom diabetes.

Gareth Price

Prescription-drug law

Health-care confusion unresolvedParliament has gonesome way towardsaddressing doctors’protests against a newprescription-drug law,but has angeredpharmacists in theprocess

The Polish parliament hasmanaged to raise the ire of thecountry’s pharmacists thanksto measures it took to addressdoctors’ concerns about a con-troversial new prescription-drug law that was introducedat the start of the year.

Doctors will now no longerbe subject to fines if they writedown an incorrect amountthat the state is due to reim-burse a patient on a prescrip-tion, following an amendmentto the new act last week. Theoriginal version said doctorswould be fined if they failed toverify and then note on anyprescription they issue thelevel of reimbursement towhich a particular patient isentitled, as well as to verifythat the patient is insured.

In protest at what they sawas a burdensome layer ofbureaucracy, a number of doc-tors embarked on what hasbeen dubbed “the stampprotests,” writing out prescrip-tions with a note saying: “reim-bursement level to be decided

by the National Health Fund.”This has led to confusionamong pharmacists, many ofwhom are charging patientsthe full amount for drugs theyshould have been entitled toreceive at a discount.

The government’s responseto the situation, however, hasonly served to further alienatepharmacists, since under theamendment pharmacists are

now subject to fines if theyaccept a prescription that hasbeen inaccurately filled out.

“A very strange model hasbeen introduced: those thatprotest achieve their goalswhile those that took the mat-ter seriously feel like they’vehad their ears clipped,” Grze-gorz Kucharewicz, head of theSupreme PharmaceuticalCouncil (NRA), a pharmacists

advocacy group, told journal-ists after the amendment wasvoted on.

He said he hoped the“asymmetry” with which phar-macists were treated would berectified, adding that if it is notthen “the appropriate decisionmight be made” at a conven-tion of the organization that isdue to take place this week.

Remi Adekoya

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According to the amendment, pharmacists are subject to fines if they sell drugs at

the wrong price

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WOÂP celebrated a record-setting fundraiser

JANUARY 16-22, 2012 BUSINESS www.wbj.pl 5

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Deficit measures under scrutinyThe EC says thePolish government isintroducingappropriate measuresto slash the deficit.Experts remaincritical

Poland’s government has takeneffective action to correct itsexcessive deficit in 2012, theEuropean Commission saidlast week. However, expertsconsulted by WBJ painted amore nuanced picture.

The EC slashed its forecastfor Poland’s deficit for 2012 to3.3 percent of GDP, still overthe 2.97 percent figure thatPolish Finance Minister JacekRostowski has repeatedly putforward, but lower than the 4percent the EC predicted inNovember. That was beforePrime Minister Tusk an-nounced a raft of reforms tothe Polish tax and social secu-rity system in a November 18speech in parliament.

Aleksander ¸aszek of theCivil Development ForumFoundation (FOR), an NGOcampaigning for awareness ofrising debt and deficit levels,praised the scope of plannedgovernment reforms. Howev-er, he said that these mostlycomprise raising public rev-

enue rather than reformingcost-intensive sectors such ashealth and education.

“We know from experiencethat raising taxes is not goodfor economic growth and thatsocial contribution increasesare not good for job creation,”he said.

Janusz Grobicki, an expertat the Adam Smith Center,was also unenthusiastic aboutthe government’s plannedreforms, saying they wereappropriate tools to control anoverheating economy. “That’s

not the case in Poland now.The potential for growth ofthe Polish economy is at about7 percent, while GDP growthnow stands at about 4 per-cent,” he commented.

Instead, improving Poland’slegal and tax system, loweringcosts for employers to hire per-sonnel and reducing bureau-cracy for entrepreneurs wouldreally make a difference,argued Mr Grobicki. Suchmeasures could boost the pro-ductivity of small and medium-sized enterprises, which

account for about 65 percent ofPolish GDP, he said.

Many analysts, among themMr ¸aszek, say the govern-ment’s target of a 2.9 percentdeficit in 2012 is unrealistic. Forhis part, Mr Grobicki said thatdue to the Polish economy’sstrong fundamentals there is “achance to achieve what MrRostowski promised to theEU.”

But with the euro-zone cri-sis still looming, that chancestill looks slim.

Alice Trudelle

Coal mining

JSW gears up formajor investmentsThe coal miner isaiming for selfsufficiency in powerproduction and plansto significantlyincrease extraction

Polish coal mining giant Jas-trz´bska Spó∏ka W´glowa(JSW) said in a series ofannouncements last week thatit plans to make significantinvestment expenditures overthe next few years.

The company announcedthe release of a large part of itstax-related reserves, which itsays will add some z∏.290 mil-lion to its 2011 results.

“[These] can now be usedfor the company’s currentinvestment needs,” chief exec-utive Jaros∏aw Zagorowskisaid in a statement.

JSW, which is the EU’sbiggest producer of cokingcoal, has some significantinvestments in the pipeline.The company said it willlaunch a tender in January forthe construction of a 70-75megawatt power plant fueledby coal production waste. Atotal of more than z∏.500 mil-lion could be spent on the

investment, Jaros∏aw Parma,head of the group’s energyarm, SEJ, told journalists.

The firm aims to have ashortlist of up to five bidders bythe end of April and to sign thedeal with the selected contrac-tor in December. Constructionshould start in the secondquarter of next year and finishby the end of 2015.

The investment is beingmade as part of the group’sstrategy to become self-suffi-cient in power supply genera-tion. It currently producesaround 70 percent of the ener-gy it consumes.

JSW also announced lastweek that it intends to invest inincreasing annual productionto 14 million metric tons by2015, from the roughly 12.6million tons extracted last year.

“Ultimately we want tomaintain the volume in thecoming years,” Mr Zagórowskitold journalists, saying thecompany hopes to do this with-out increasing employmentlevels.

Mr Zagórowski added thatthe coal miner plans to spendat least 30 percent of last year’snet profit on dividends.

Gareth Price

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Mr Rostowski has set unrealistic deficit targets, say experts

JANUARY 16-22, 2012BUSINESS6 www.wbj.pl

TP to pay

€550 million

settlement

Poland’s Telekomunikacja

Polska and Danish Polish

Telecommunication

Group came to an

agreement regarding an

11-year dispute. TP will

pay €550 million to DPTG

in settlement for the

distribution of profits on

a fiber optic project built

in Poland in the 1990s by

DPTG for Poczta Polska

Telefon i Telegraf, the

legal predecessor of TP.

TP had contested a

clause granting the

Danish company nearly

15% of profits over a 15-

year period. “We have

chosen a difficult solution

that is, however, the best

one for TP and its

shareholders,” Maciej

Witucki, president and

CEO of TP, said in a

statement.

Service-center

market

booming

Poland’s service-center

market continued to fare

well in 2011, with the

sector worth some z∏.13

billion last year,

reported Rzeczpospolita.

Poland is currently the

most mature location for

modern services in

Europe, and one of the

top five locations in the

world, according to

Everest Group, an

executive recruiting

firm. Across the country,

some 300 service

centers already employ

about 80,000 workers,

which is more than in

any other country in

Central and Eastern

Europe. And the latest

data from the

Association of Business

Service Leaders in

Poland (ABSL) predicts

employment in the

sector could top 100,000

by 2013.

Polish rail gets

z∏.3 billion

investment

Investment in Polish

railway infrastructure

rose by almost 25% to a

record z∏.3.1 billion last

year, according to

research firm PMR. In

2010, investment in the

development of railway

infrastructure reached

z∏.2.5 billion, compared

to just z∏.0.88 billion in

2005 – when EU grants

for rail construction first

became available.

Experts predict the rail

network will see even

more investments in

2012. ●

Polish IT firms areworking on introducingtechnology that willallow direct tradingfrom abroadPolish technology firmsAsseco, Comarch and Sygnityare all currently working oncreating IT solutions that willenable both brokerage housesin Poland and investors locat-ed abroad to use the WarsawStock Exchange’s new Univer-sal Trading Platform (UTP).

Pawe∏ Borzestowski, vicepresident of the managementboard at Asseco Poland, saidthat the UTP system is expect-ed to be ready to use in Q32012.

“UTP is an internal projectbeing introduced by the War-saw Stock Exchange. It’s a moremodern system that providesfor new transaction capabilities.It will also be faster,” he added.

Although representativesfrom WSE would not com-ment on the UTP technologywhen contacted by WBJ, it isexpected that the new systemwill significantly increase thevolume of transactions on thePolish stock exchange.

In Poland the “main play-ers are local,” Mr Borzestows-

ki said, adding that there isnow a growing demand fromoutside investors to participatein the Polish market.

In essence, the WSE’s newsystem will aim to, “satisfyinternational standards forstock exchanges,” Mr Bo-rzestowski said.

According to Micha∏ Mi-chalski, director of investorrelations at Sygnity, there arecurrently three main ways for aforeign brokerage to trade onthe Warsaw Stock Exchange.

“Firstly, in its broadestform as a direct member ofthe WSE, it may place ordersdirectly; in addition, it mayalso lead the securities settle-ment.” Furthermore, “as aremote member of the stockexchange, it may place ordersdirectly, but it is the localpartner who leads the securi-ties settlement. In the thirdvariant, the entire activitymay be conducted through alocal partner,” Mr Michalskiadded.

Sygnity will adapt to thenew system by using FIX pro-tocol to enable an online con-nection between foreign bro-kerage houses and those cur-rently trading on the WSE.

Ella Pa∏ka

Securities trading

Traders abroad soon to

be able to buy and sell

directly on the WSE Strong consumerspending ahead of newlaws governingprescription drugsunderlay the high salesfigure

Pharmacies in Poland pur-chased medicine and otherpharmaceutical products fromwholesalers for z∏.1.96 billionin December 2011, a 14.3 per-cent year-on-year rise and arecord for that month.

The final month of last yearproved to be a boom periodfor Poland’s pharmaceuticalsmarket as consumers, worriedabout possible price rises andthe removal of certain prod-ucts from the list of thosereimbursed by the state, stock-piled medicines ahead of con-troversial new legal changesgoverning prescription drugs,which came in to effect on Jan-uary 1.

“The announcement of thenew list of reimbursed drugsfrom January 2012 sparkedpanic purchasing in Decem-ber. Fearing higher prices ofmedicines and the removal ofsome of them from the lists ofreimbursement, patients oftenbought drugs in reserve,”Marcin Gawronski, an expertfrom IMS Health, said in a

statement. In total, sales of medicines

and pharmaceutical productsin 2011 rose by 4.8 percent, tomore than z∏.23.3 billion. Thefirst quarter was the most prof-itable for producers as phar-macies purchased drugs worthz∏.6.3 billion, a rise of 10 per-cent on Q1 2010.

In the next two quartersgrowth barely exceeded 1 per-cent but strong sales, particu-larly in December, meant thatin the final quarter of the yearsales amounted to z∏.6.3 bil-lion, a rise of 7 percent year-on-year.

March was the year’s best

month, with z∏.2.2 billionworth of sales, while Julyproved to be the least success-ful – with drugs worth a totalof almost z∏.1.7 billion beingsold to pharmacies.

However, looking forwardto next year and the impact thenew laws governing the reim-bursement of prescriptiondrugs will have on sales, MrGawronski said, “2012 is aperiod when new legislation isintroduced and reimburse-ment associated with thischange may have a significantimpact on the dynamics of themarket.”

David Ingham

Pharma industry

Pharmaceutical sales worth arecord z∏.2 billion in December

New rules affectingthe banking andnatural resourcessectors mean dividendpayouts may be lessspectacular this year

Although analysts expect manyWarsaw Stock Exchange-listedcompanies to pay out healthydividends this year, new taxeson natural resources as well asrecommendations from Po-land’s Financial SupervisionAuthority (KNF) are expectedto limit the size of some pay-outs.

Waldemar Stachowiak, ananalyst from Ipopema Securi-ties, told WBJ that overall divi-dend levels will be lower thisyear. One of the reasons is thegovernment’s proposal for newtaxes on natural resources –with a tax on silver and copperextraction being one of themost controversial. This tax ismainly expected to have animpact on Polish metals minerKGHM.

Nevertheless, a number ofexperts believe the firm’sstock may continue to dowell, thereby providinghealthy yields to sharehold-ers. KGHM CEO HerbertWirth has said the tax mightmean the firm has to limitinvestment and takeoverplans, although he didn’tmention dividend payouts.

Marcin Materna, an analystat Millennium Dom Maklers-ki, said KGHM will likely payout one of the highest divi-dends for 2012.

Poland’s largest powercompany, PGE, as well as itslargest insurer, PZU, are alsoexpected to pay out some ofthe largest dividends this year,Mr Materna added.

Bank regulationThe overall size of dividend pay-outs this year is also expected tobe strongly influenced by theKNF’s new regulations on thefinancial sector. The KNF wantsbanks to restrict dividends to amaximum of 50 percent of netprofit, unless they have stableratings from international agen-cies such as Moody’s.

Micha∏ Konarski, an ana-lyst from Wood & Company,

said financial institutions areunlikely to attempt to circum-vent the KNF’s recommenda-tions, as they are traditionallytreated more like hard-and-fast regulation than advice.

However, that’s not to saycertain banks are not forecastto pay out some tidy sums. MrKonarski said PKO BP is onelender which already fulfillsthe regulator’s new set of rulesand is therefore likely to pay a

healthy dividend for 2012.Mr Materna also said he

expects two banks – Citi Hand-lowy and PKO BP – to pay outsome of the largest amounts toshareholders from among Pol-ish lenders.

Marcin Jab∏czyƒski, anequity analyst at DeutscheSecurities, told WBJ that healso forecasts Bank Pekao topay out strong dividends.

Ella Pa∏ka

Dividend payouts

Lower dividends in 2012?

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

DecNovOctSepAugJulJunMayAprMarFebJan-3

0

3

6

9

12

15Market growth (% y-on-y)

Panic buyingPolish wholesale drug sales 2011 January – December 2011 (in z∏.billion)

Source: PMR

PZU z∏.26.00

KGHM z∏.14.90

Pekao z∏.6.80

Citi Handlowy z∏.5.72

PKO BP z∏.1.98

PGE z∏.0.65

Source: KBC Securities

Big dividend-ers?The analysts WBJ spoke tonamed several stocks theyexpect to pay out high divi-dends for 2012. Here arethose companies’ dividendpayouts per share in 2011

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Dividends from WSE-listed companies will be impacted by regulatory changes

Office and factoryworkers bore the bruntof the layoffs

The number of unemployedpeople in Poland reached12.5 percent in December2011, 0.4 percentage pointsmore than a month earlier,according to figures fromthe Ministry of Labor andSocial Policy. The sameperiod of 2010 saw a m/mincrease of 0.7 percentagepoints to 12.4 percent.

The year ended with 1.98million citizens registered asjobless, with the last fourmonths of 2011 seeing thenumber of unemployedincrease by some 128,000. InDecember, 68,100 more peo-ple were registered as unem-ployed than a month earlier.

The Ministry of Laborand Social Policy wrote in astatement that increasedunemployment during thefinal month of the year wasexpected.

Office and factory work-ers were most affected byredundancies and the end-ing of fixed-term contractsthat were not extended byemployers.

“December is [normally]a period for returning toregistered unemployment,”the ministry wrote.

“In addition, a lower num-ber of vacancies, includingsubsidized jobs, contributedto the growing unemploy-ment. December is also aperiod of time when seasonalwork, especially in forestryand horticulture, ended. Forits part, work in the construc-tion industry continued inmany cases due to the favor-able weather conditions,” theministry added.

For full-year 2011 thenumber of unemployedPoles increased by some28,300, or 1.4 percent, com-pared to a 3 percent annualincrease in 2010. This means

that although more Poleswere unemployed in 2011,the annual increase was sig-nificantly lower than a yearearlier.

In December, only 34,600new jobs were created,10,300 fewer than a monthearlier. A decrease in thenumber of vacancies month-on-month occurred in 15voivodships. This rangedfrom a 45.4 percent decrease,or 2,100 available jobs, in theWielkopolskie voivodship toa 7 percent decrease, or 100jobs, in the Âwi´tokrzyskievoivodship.

David Ingham

JANUARY 16-22, 2012 FINANCE & ECONOMICS www.wbj.pl 7

Labor market

Unemployment risesto 12.5% in December

11

12

13

14

Dec. '11

Nov. '11

Oct. '11

Sep. '1

1

Aug. '1

1Jul.

'11Jun

. '11

May '11

Apr. '1

1Mar.

'11Feb

. '11

Jan. '1

1

Dec. '10

Unemployment ups and downsPoland's unemployment rate, December 2010-December 2011

Source: Central Statistical Office, Ministry of Labor and Social Policy

A slowdown inneigboring Germany,however, likely heraldsdeterioration in thefutureOver the first three quartersof 2011 the average monthlygross wage in Polandamounted to z∏.3,415.98 –5.5 percent more than forthe same period of 2010,according to a Januaryreport from Poland’s CentralStatistical Office (GUS).

In the public sector theaverage wage increased by5.4 percent, and by 6 percentin the private sector.

Compared to the firstnine months of 2010, thehighest growth in Q1-Q32011 wages was observed insectors including agriculture,forestry and fishing (12.7percent), mining and quarry-ing (10.8 percent), andadministrative and supportservices (7.5 percent).

The lowest wage increas-es were in scientific andtechnical activities (2.3 per-

cent) and human health andsocial work (2.6 percent).

Looking forward to thisyear, Agnieszka Decewicz, aneconomist at Bank ZachodniWBK, said, “We foresee somedeterioration in the future.The main reason [for this is]the expected slowdown in theeuro zone, the EU and in par-ticular Germany, which isPoland’s largest export mar-

ket.”Germany’s economy con-

tracted year-on-year in thefourth quarter of 2011, lead-ing to worries that Europe’smost powerful economy couldexperience a small recession.This could impact on Ger-many’s ability to supportbailout funds for strugglingeuro-zone countries.

David Ingham

Remuneration

Wages rise 5.5% in firstthree quarters of 2011

2,000

2,750

3,500

4,250

5,000

Mazowiec

kie

Śląski

e

Pomors

kie

Dolnoś

ląskie

Ma∏opo

lskie

Wielkop

olskie

Opolsk

ie

Zach

odnio

pomors

kie

Łódzki

e

Lubels

kie

Podla

skie

Święt

okrzy

skie

Kujaw

sko-Po

morskie

Lubus

kie

Podk

arpac

kie

Warmińs

ko-Mazu

rskie

It pays to live in MazowieckieAverage monthly wages and salaries in Poland by voivodship,Q1-Q3 2011 (in z∏.)

Source: Central Statistical Office

The EuropeanCommission praisedPoland for the“effective action” ittook to control theshortfall in its finances

Poland’s Finance Ministry saidthe budget deficit at the end of2011 likely stood at about z∏.25billion – z∏.15 billion lower thanthe amount forecast in the gov-ernment’s budget plan for theyear.

The ministry made the esti-mate of z∏.25 billion based ondata for the first 11 months of2011.

“Measures announced for2011 … have been smoothlyimplemented and have con-tributed to achieving this excel-lent outcome,” Finance Minis-ter Jacek Rostowski wrote in aletter to vice president of theEuropean Commission OlliRehn, outlining Poland’s finan-cial situation.

Fiscal discipline, Mr Ros-towski said, had been strength-ened by changes to the pensionssystem, a temporary expendi-ture rule applied on all discre-tionary and new legally mandat-ed spending, and a new regimethat prevents the government

from increasing expenditure ona number of social entitlements.

The European Commissionpraised Poland on its deficit per-formance last week, sayingchanges implemented last yearhad put it on track to meet itstargets for 2012.

“Belgium, Cyprus, Maltaand Poland … countries thatwere at risk of not meeting theirdeadlines of 2011 or 2012 to cor-rect their excessive deficit – havetaken effective action,” theCommission said in a statement.

Poland was one of five coun-tries which received a letter fromMr Rehn in November last yearwarning that they were not oncourse to meet the commonEuropean fiscal criteria for 2012.

Despite the EC’s praise,the general governmentdeficit for 2011 is expected tocome in at 5.6 percent of GDP– far below the 3 percentrequired by the euro conver-gence criteria. Mr Rostowskiadmitted in his letter to MrRehn that 2011’s is still a “rel-atively high deficit.”

The finance minister ex-plained that last year had wit-nessed “a peak in public invest-ment, the highest in the EUwhich, while supporting GDPgrowth, generates a larger gen-eral government deficit.”

Poland aims to reduce thedeficit to below 3 percent ofGDP by the end of this year.

Gareth Price

Public finances

Poland’s 2011 deficit z∏.15 billionlower than forecast in budget

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European Commissioner Olli Rehn had earlier sent

Poland a letter warning it about its deficit

JANUARY 16-22, 20128 www.wbj.pl INTERVIEW

PGNiG in

z∏.3 billion

Vattenfall

purchase State-controlled oil and

gas company PGNiG has

finalized the purchase of

a 99.8% stake in

Vattenfall Heat Poland

(VHP) for z∏.3.017 billion.

“Owing to the VHP

acquisition, PGNiG is

becoming an energy

conglomerate providing

customers with multiple

energy carriers,

including heat, electricity

and gas,” PGNiG said in a

statement. The

production capacities of

the Coal Handling and

Preparation Plant and

power plants owned by

VHP are responsible for

over 23% of the total

installed heat capacities

in Poland.

Poles fearful

over crisis

A total of 87% of Poles

think the economic crisis

will negatively impact

their country, according

to a new survey by the

Public Opinion Research

Center (CBOS). Of those

polled, 81% believe the

crisis will directly impact

their families. ●

Ruling coalition

A coalition of compromise

Ewa Boniecka: Relations with-in the governing Civic Plat-form-PSL coalition havechanged markedly since thelast parliamentary term – thereis now visible tension and dif-ferences in opinion towardsreforms announced by PrimeMinister Donald Tusk. Whyexactly have things changed?Jan Bury: Nothing haschanged. The coalition formedin the last parliament, whichlasted for a full term – the firsttime this has happened in Pol-ish politics for 20 years – func-tioned well and the voters gaveus their support for a secondterm. I am convinced there-fore that the present coalition,in spite of the various difficul-ties that it faces, and the crisisin Europe will cooperate fullyin the interests of Poland.

But, for example, your partyopposes the government’s pro-posal to increase the retire-ment age for both men and

women to 67 years, and haseven put forward its own, alter-native, proposal.It is obvious that Civic Plat-form (PO) and the PolishPeople’s Party have their ownpolitical characteristics andprograms and the fact thatwe are in a coalition does notmean PSL doesn’t have theright to present its own proj-ects. PSL’s parliamentarycaucus is working on propos-als, just as PO’s caucus is, soPSL does and always willpresent its own legislativeproposals. Some of these dif-fer from those presented byPrime Minister Tusk. PSL is aresponsible party which hasits own ideas for reformingthe country. These should bediscussed and it is naturalthat ... our two parties’ pro-posals should be the subjectof discussions within thecoalition. This also concernsthe issue of increasing theretirement age for men and

women and PSL’s proposal toreduce the retirement age forwomen who have raised chil-dren by three years for eachchild they have had. We canof course talk with PO aboutthe amount of time womencan have deducted for eachchild … yet we want to stickto the proposal.

It appears as if PSL wants toshow its sensitive, social face,and by distancing itself fromsome of PO’s proposals it isplaying its own political game.How long will you be able topursue this strategy whileremaining within the coalitiongovernment? We are not playing a politicalgame, yet we think that partieswithin the coalition have totalk to each other aboutsearching for the best solutionfor reforming the country. Thecoalition government wants torealize many important re-forms, yet it is not true thatonly some politicians are thewisest in the world and havethe best answers, while othersare only able to raise theirhands and vote for their proj-ects. If this were the case inour coalition, it would be a badcoalition.

A good coalition meansdialogue, cooperation and alsothe ability to find compromisewhen trying to achieve the bestsolutions. And I can give youexamples showing that suchcompromises are possible:Within the last few weeks twoparliamentary commissionshave been working on amend-ments to the proposed subsi-dies for schools. PO proposedthat they be reduced from thepresent 0.6 percent to 0.25percent of the budget, whilePSL members argued forkeeping them at their presentlevel. As a result of discussionsbetween our MPs a compro-mise decision was reached thatwill see them reduced to 0.4percent.

It is the general opinion ofindependent analysts that themost painful economic andsocial reforms should be car-ried out in the first year of thenew government. This is alsothe intention of Donald Tusk.However, PSL leader andDeputy Prime Minister Walde-mar Pawlak is trying to dis-tance himself from reforms tothe retirement system and theparty is presenting alternativeproposals for reforming

KRUS (the Agricultural SocialInsurance Fund). Do you pre-fer the policy pursued by thegovernment in the last parlia-mentary term of postponingthe most difficult reforms?No, PSL supports the policy ofreforming the country, and wealso think that reforms can beperformed in each year of thegovernment’s term, withoutbeing artificially sped up.

Donald Tusk has promised topresent a bill regulating thematter of in vitro fertilization,yet even within PO opinionsare divided. How do you seethe situation being resolved,and will PSL support the gov-ernment’s final draft bill?First of all, Civic Platform hasto resolve its inner differencesabout in vitro, because thereare now two projects preparedby PO MPs – one quite liberal,prepared by Ma∏gorzataKidawa-Bloƒska, and theother rather conservative, pre-pared in the previous term byJaros∏aw Gowin.

When Civic Platform hasprepared its final project andpresents it to us, as a coalitionpartner, and to the Sejm, wewill work on it. Generally inethical matters MPs in all par-

Jan Bury, chairman of the Polish People’s Party(PSL) parliamentary caucus, talks to WBJabout relations in the ruling coalition, theattitude of his party towards Prime MinisterDonald Tusk’s reform proposals, and the needfor compromise

JANUARY 16-22, 2012 INTREVIEW www.wbj.pl 9

ties can vote according to theirconscience. In my opinion thematter of in vitro should belegally regulated in Poland andpersonally, as a citizen, I thinkthat if the problem concerns afew hundred families inPoland who can not have chil-dren in a natural way, theydeserve to receive support.

Recently, differences betweenPSL and PO have surfacedover their respective attitudestowards deeper European inte-gration. I, along with manyother observers, was surprisedby Waldemar Pawlak’s recentremark that if the euro zone isnot able to deal with the crisis,one solution could be for coun-tries to adopt national curren-cies. How do you see thesituation? What is so surprising aboutthat remark? WaldemarPawlak said in the parliamen-tary debate that the euro is thecommon success of 17 mem-bers of that zone and othercountries want to join it, butthat it is now facing the biggestcrisis in its history. If the eurozone is not able to resolve itscrisis, one solution could be areturn to the system where theeuro plays the role of a settle-ment currency. He pointed toan alternative scenario, that’sall.

PSL has always been andstill is a pro-European party,maybe more “eurorealistic”then “euroenthusiastic” – asis Civic Platform. This is notthe first time we haveexpressed our own separate

positions towards Europeanmatters.

PSL’s traditional rural elec-torate has gained a lot fromthe European Union. Do youthink that in this present timeof financial crisis in Europeand attacks by some memberstates on the EU’s currentagricultural policy, the policiesthat benefit your core elec-torate will be retained in thenext budget?There is no doubt that Polishvillages and rural communities

have changed a lot during thelast seven years and this is to agreat extent due to EU funds.I think that agricultural policywon’t change significantly inthe next EU budget because itis seen as important for mod-ernizing and developing ruralareas. Contrary to a commonPolish belief, there are a lot ofsmall and not very rich familyfarms in Greece, Italy andHungary, and they all needsupport.

How realistic is a scenario inwhich PSL does not supportCivil Platform in pushingthrough some of its mostimportant legislation, such asreforms to the retirement sys-tem and KRUS, and the coali-

tion breaks up, leading DonaldTusk to establish a new coali-tion – for instance with theDemocratic Left Alliance(SLD)?

Our coalition is a respon-sible project that is meant tolast for a full term. Funda-mental to this is mutual trust.Yet any agreement, even onewhich is signed, is not guaran-teed for ever because life andpolitics can present variousnew scenarios. Nevertheless,we think that the coalitionbetween our party and PO is

the best for Poland and itspeople. Cooperation betweenWaldemar Pawlak and Don-ald Tusk is based on mutualunderstanding and I thinkthat our feelings of responsi-bility towards the state willallow us to overcome differ-ences in our approach to cer-tain problems. But if ourpartner thinks it would beeasier and more cozy withanother partner, I will remindthem of some previous expe-riences, such as that of PrimeMinister Leszek Miller’sSLD-led government. MrMiller came to the conclusionthat he would be able to dealbetter with smaller partners,but we all know what the endwas for his government. ●

“PSL, like Civic Platform, is pro-European but more ‘eurorealistic’

than ‘euroenthusiastic’”

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Mr Bury says Civic Platform would be mistaken in thinking life would be easier with

a new coalition partner

JANUARY 16-22, 201210 www.wbj.pl TAX

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American expats: large fines forfailing to comply with US tax laws

Tax Eye

On December 8, 2011, theUS Internal Revenue Ser-vicee quietly published a factsheet on its website summa-rizing the tax and reportingobligations of US citizens liv-ing abroad. The publication,along with earlier announce-ments, represents a shift inthe US government’s taxenforcement efforts thatmeans taxpayers who mayhave been honestly unawareof their obligations are nowin the spotlight. In early2011, IRS commissionerDouglas H. Shulman’s saidthat “[the IRS is] not lettingup on international taxissues, and more is in theworks. The risk of beingcaught will only increase.”

Over the past five years theUS government has aggres-sively pursued tax enforce-ment beyond its own borders– first, by prosecuting Swissbankers and their US clientsand then by initiating twoamnesty programs designed tocapture hidden offshore bank

accounts, all while openingnew offices abroad and addingstaff to existing overseasoffices. These efforts haveproved to be enormously suc-cessful, netting tens of thou-sands of non-compliant tax-payers and hundreds of mil-lions of dollars in back taxesand penalties. Even honestAmericans abroad are nowafraid that if they don’t some-how clean up their US tax situ-ation, they will be stopped andquestioned upon returning tothe US, or worse.

Reporting obligationsIn Canada, home to over onemillion Americans, theresulting public outcry hasprompted negotiation be-tween leaders of both coun-tries. As of press time, theIRS had confirmed that anannouncement of a taxamnesty for Americans inCanada is imminent. But forAmericans living abroad andwith business interests else-where, the solution will be

less straightforward. The firststep, however, is to under-stand the US tax and report-ing obligations.

Generally, all US citizensand US permanent residentsmust file an annual incometax return reporting world-wide income, regardless ofwhere they reside. Failing todo so may subject a US per-son to penaltiesof up to 25 per-cent of theamount of taxdue, plus inter-est thereon.Many non-filersrationalize thatthey owe no UStax as a result of a creditgiven for taxes paid in theirresident country. Even thisflawed justification is notavailable to many Americansin Poland, as most liberallytreat themselves as non-taxresidents of Poland, payingminimal Polish income tax.Furthermore, irrespective oftheir tax liability, Americans

abroad must file certainother reporting forms, mostimportantly the Report ofForeign Bank Accounts,commonly known as the“FBAR.”

FBAREach US person who has afinancial interest or signatureauthority over a foreign bank

or financialaccount with avalue of at least$10,000 isrequired to filea FBAR annu-ally. Owning aforeign bankaccount, direct-

ly or indirectly, or having theauthority to control anaccount owned by someoneelse, including an employer,may create an obligation tofile the FBAR. The penaltiesfor failing to do so are severe:$10,000 per account up to thegreater of $100,000 or 50 per-cent of the value of theaccounts, depending on the

willfulness of the filer.US persons living abroad

should consult with a counselto determine their filingrequirements and will verylikely be able to avoid themost draconian penalties pro-vided they respond pro-active-ly. Given the onerous report-ing requirements the USimposes on its citizens andGreen Card holders regard-less of where they reside,many Americans livingabroad, including in Poland,are considering the advan-tages of relinquishing their UScitizenship or Green Card.The consequences of expatria-tion are complicated andshould be considered carefullywith a trained tax advisor.

Americans in Polandshould also be mindful thatthe tolerant stance the Pol-ish Ministry of Finance hastaken over the last 20 yearswith regard to individualsdeclaring limited tax resi-dency in Poland is now beingreassessed. Recently, the

Ministry of Finance has ded-icated staff in tax offices tobe in charge of more system-atic analysis of the annualtax statements of non-resi-dents. Time will tell howeffective these changes willbe, but it is clear that theauthorities on both sides aretaking an active approachwith regard to issues affect-ing the taxation of Ameri-cans in Poland. ●

Jakub Kucharzyk is anattorney with Kaye Scholer

LLP in New York focusing oninternational tax and estate

planning matters. He can bereached at jakub.kucharzyk@

kayescholer.com.

Aldona Leszczyƒska-Mikulska is a legal advisor

(radca prawny) and tax advi-sor with Wardynski & Part-

ners, Warsaw office, head ofthe private client advisory

group. She can be reached ataldona.leszczynska-mikuls-

ka@wardynski.com.pl.

Jakub Kucharczyk, Aldona Leszczyƒska-Mikulska

“Even honestAmericans abroad

are now afraid”

Contact: Miros∏aw Stefanik

ms@pnplaw.pl

Legal News

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Each municipality responsiblefor waste managementOn January 1, 2012 a new system ofwaste collection and recycling was imple-mented. The changes result from a recentamendment to the Law on Maintenanceof Cleanliness and Order in Municipalities.Municipalities are to take over the dutiesof real estate owners with respect towaste management. Each municipality isobliged to conclude a contract for com-munal waste collection with a privatewaste-collection enterprise chosenthrough a tender. Moreover, municipalitiesare obliged to ensure that regional installa-tions for processing communal waste areconstructed and utilized. These installa-tions should belong to a given municipali-ty or be jointly owned by several munici-palities.

Individual entrepreneur proxy registrationFrom January 1, 2012, the data of a proxywho has been authorized to conduct theaffairs of an individual entrepreneur maybe registered in the Central BusinessActivity Records and Information office(Centralnej Ewidencji i Informacji o Dzia∏al-noÊci Gospodarczej – CEIDG).

Changes in social insuranceAn important amendment to the Law onthe Social Insurance System was intro-duced on January 1, 2012. Since that date

employers have been released from theobligation to issue ZUS RMUA formsevery month. These forms provide confir-mation to health-care institutions of apatient’s right to free-of-charge treatment.Employers will be obliged to provide ZUSRMUA forms every month only if anemployee requests they do so. Moreover,the deadlines for refunds of social insur-ance premiums paid in excess or not paidin full has been shortened from 10 to fiveyears. The period for which employers areobliged to keep copies of documents con-firming that premiums have been withheldwas also shortened to five years.

Entrepreneurs to discloseweb addresses in NationalCourt RegisterProvisions of the amendment to the Lawon the National Court Register came intoforce on January 1, 2012. They broadenthe scope of information that entrepre-neurs are obliged to disclose in theNational Court Register. Now, entrepre-neurs are to disclose their web addressand e-mail address. The provision in ques-tion is applicable to all entities entered inthe entrepreneurs’ register.

The amendments have made it neces-sary for the forms used to make entries inthe National Court Register to bechanged. The KRS-Z3 form, for example,now contains a relevant box for disclosingnew information. ●

JANUARY 16-22, 2012 OPINION & ANALYSIS www.wbj.pl 11

The new strategic defense guid-ance from the Obama adminis-tration aims to refocus the US

defense posture on the increasinglycompetitive security environmentemerging in the Pacific. It also(despite the Pentagon’s protestationsto the contrary) appears to put anend to the era of large-scale counter-

insurgency and stability operations.Last but not least, it implies a strate-gic shift away from Europe.

A decisive pointIt thus brings the United States andEurope to a decisive point in their

relationship: they will need toreframe the division of labor in thesecurity dimension of the transat-lantic alliance.

The Obama administration’splanned $489 billion defense cutsover 10 years means that any buildupof US capacity in Asia will have to beoffset in part through further reduc-tions in the US presence in Europe.Cuts may even be double that ifCongress fails to reverse massiveautomatic budget reductions by 2013.Moreover, under the “one war, onespoiling action” formula espoused bythe 2012 Defense Strategic Guid-ance, the United States’ role inNATO may shift from that of ulti-mate European security provider tomore of an enabler of Europeandefense.

The implications for Europe aresignificant. Simply put: if the UnitedStates is engaged in a conflict on theother side of the globe, a contingencythat could develop in or near Europewould require Europe to be ready torespond first.

Questions to answerThe “burden-sharing” debate hasthus been redefined. Of course, theUnited States retains a strategicinterest in Europe, Eurasia, and theMiddle East. But it will have to cometo a much more explicit understand-ing with Europe about respectiveregional interests: where do theyintersect/diverge? Is it possible, and ifso under what circumstances, to gen-erate a credible sense of sharedresponsibility? And what assets andcapabilities can Europe bring to thetable – particularly if US assets areneeded elsewhere?

The United States might opt forissue-based cooperation with individ-ual countries or with regional group-ings within the NATO framework.This could balance near-term the tiltof US strategy towards Asia and cre-ate a pathway for the United Statesand Europe to maximize their shrink-ing capabilities on the continent andpreserve the mutuality of theirdefense commitments. But will thatbe enough security for Europe? Does

the European Union’s Common For-eign and Security Policy (CSDP)have an answer to this question? Andis anyone even asking that question inBrussels or national capitals?

Cash-strapped One thing is clear at any rate: At atime when 40 cents of every dollarWashington spends is borrowed,Europe can no longer expect that theUnited States will remain its solesecurity provider. As long as the EUdoes not provide persuasive assetsand capabilities that justify the as yet-elusive pursuit of an EU-NATO part-nership, security cooperation underthe NATO umbrella is the more real-istic way to maintain transatlanticsecurity relations.

Admittedly, that would mean a par-tial renationalization of security, but itwould offer real capabilities by willingplayers. An example of the latter is therecent Franco-British military cooper-ation treaty, which provides not onlyfor nuclear sharing, but also for thecreation of a joint strike force and the

joint use of aircraft carriers. CentralEurope might see similar arrange-ments, including Germany, Poland,Scandinavia, the Baltics, and Romania,for example. Combined with NATO’sdeterrent capability, European forcesthus configured could really pull theirweight – until such time when theCSDP can actually be made to work.

Transatlantic relations remain keyto the security of both the UnitedStates and Europe, but Europe’s tra-ditional pattern of structural depend-ence on the United States is chang-ing. More regional security coopera-tion can buttress NATO into theimmediate future, as the UnitedStates pivots to the Pacific and theEU looks for larger answers to itssecurity dilemmas. ●

Andrew A. Michta is seniortransatlantic fellow at the German

Marshall Fund of the United Statesand director of the GMF

Warsaw office.Copyright: German Marshall Fund

of the United States

W hile the world anxiouslyawaits the climax of the euro-zone drama, its leaders’

behavior resembles the politicalequivalent of what physicists call“Brownian motion,” with officialsbouncing randomly from one crucialbilateral consultation and vital Euro-pean summit to the next. The impactof make-or-break declarations thatare supposed to solve the monetaryunion’s problems dissipates almost assoon as they are issued.

Adjusting to realityMeanwhile, a plethora of diagnosesand prescriptions are competing forattention – and in their gloominess.But their overwhelming focus on theeconomics of the euro crisis is itselfpart of the problem because the crisisis, above all, a reflection of deep-seat-ed weaknesses in European institu-tions and the fabric of European soci-ety. Otherwise, what began as a mar-ginal debt crisis, aggravated by politi-cal indecisiveness in Greece and inthe European Union as a whole,would not have grown into an exis-tential watershed moment for theEuropean project.

Europe is plagued by three dis-tinct problems. First, it remains inca-pable of adjusting to the realities of aworld whose center of gravity hasirrevocably shifted eastward to thePacific, pulling with it the attention ofthe United States. Second, more thanever, Europeans are looking inward,as a sense of entitlement meets per-vasive skepticism – a combinationthat permeates to the highest eche-lons of the EU and national govern-ments.

Meanwhile, at a time when theEU’s basic law, the Treaty of Lisbon,needs to be reformed, the entireUnion is paralyzed by the navel-gaz-ing attitude of a Germany beset by90-year-old memories of the doomedWeimar Republic. Therein lies theproblem: the decision-making pro-cess that has underwritten much ofthe EU’s construction, while highlyeffective during the Cold War, whenthe Union’s institutional and legalfoundations were laid, has remainedlargely intact, leaving Europe unableto address its current challenges.

Founded on the stability of theCold War era’s bipolar internationalorder, the EU had the luxury of time

as it deliberated on each successivebuilding block of its growing edifice.No sooner would a new block be setin place than agents of further inte-gration would infiltrate the existingstructure and establish the bridge-heads from which the EU wouldevolve further.

Cast adriftIndeed, some of the EU’s majorundertakings – the European Mone-tary Union being a fitting example –were contemplated for years beforeseeing the light of day. The EMU,implemented in 1999 with the launchof the euro, bore the DNA of theDelors Committee, which laid out thefundamentals of the common curren-cy in 1988. Critics have been quick todismiss the incomplete nature of theeuro’s original structure, whichremains unchanged to this day. Butthese critics forget that the greatestmiscalculation was the assumption ofstability while on the verge of a sys-temic transformation impregnatedwith volatility.

Europe’s current crisis is rooted inloss. Untethered from the mooring ofCold War-era bipolarity, Europe was

swept off its feet and cast adrift in thecurrents of a globalized world, unableto find either its place or direction.Most critically, Europe’s old instinctsand modus operandi persisted longafter the new contours of globalaffairs had taken shape.

They still do. That is why, in facingits gravest test so far, Europe seemsoblivious: its leaders project confu-sion and indecision; its citizens exudea mixture of complacency, indiffer-ence, and self-doubt; and its institu-tions are locked in turf battles andremain hindered by laborious proce-dures and protocol.

A new designIt is also part of the reason why mar-kets are besieging the euro zone soincessantly. What investors sense isnot weak economic fundamentals,but Europe’s weak political funda-mentals – the absence of a gover-nance structure with real power andthe will to use that power to resolveproblems. If Europe is to adjust tothe requirements of the new “Pacificworld,” it does not need fine-tuning;it needs a new design.

The EU is a political structure

based on the rule of law. As such, itcannot afford to disregard the vitaltasks of updating its procedural com-ponents. On a deeper level, Euro-

peans need to replace their melodra-matic, and entirely groundless, self-doubt with the pride and determina-tion befitting their example ofdemocracy and prosperity. And, mostimmediately, Germany must stopsinging solo and start playing its partin the European choir. ●

Ana Palacio is a former Spanishforeign minister and former senior

vice president and general counsel of the World Bank.

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

The new US defense strategy: A wake-up call for Europe

“Untethered from themooring of Cold War-era

bipolarity, Europe was sweptoff its feet and cast adrift inthe currents of a globalized

world”

“If the US is engagedin conflict on theother side of theglobe, Europe needsto be ready torespond first”

The perils of Europe’s navel gazing Ana Palacio

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Andew A. Michta

JANUARY 16-22, 2012COVER STORY12 www.wbj.pl

Energy

Poland’s energy mix setto remain coal-orientedThirty years ago, Poland wasthe world’s second-largest coalexporter. The country’s transi-tion to a market economybrought with it a significantdownsize in the industry, withoutput falling from 193 millionmetric tons to just above 75million between 1988 and2010, according toEURACOAL, the EuropeanAssociation for Coal and Lig-nite. Nevertheless, EuropeanCommission figures show that88 percent of the country’selectricity is still producedfrom coal.

Demand for coal is stillgrowing worldwide, and todayit is the fuel of choice fordeveloping economies such asChina and India. But inEurope, where coal accountsfor about 25 percent of elec-tricity production, Poland’scontinuing reliance on coal isstriking.

Indeed, Poland is legallybound to reduce its CO2 emis-sions (see Legal Eye, p. 13), butthere are no plans to abandonthe fuel. In fact, the industrylooks like it’s in for a boost inPoland, with several large-scale investments recentlyannounced in coal mining andcoal-based power plants.

New investmentsPerhaps the best illustration ofthis revival is the z∏.2 billionreopening of the D´bieƒskomine in Upper Silesia by NewWorld Resources (NWR), a

leading producer of hard coaland coke in Central andEastern Europe.

According to the firm, theinvestment will create over2,000 jobs, and has alreadyattracted more than 3,000 jobapplications. “Our project hasreceived a great deal of sup-port from the local govern-ment and local communities,”said Jerzy Klinowski, vicechairman of the board andCOO of NWR Karbonia, thesubsidiary of NWR responsi-ble for the investments in theD´bieƒsko mine.

The D´bieƒsko mine hasestimated reserves of 190 mil-lion tons of coal, the majorityof which are expected to becoking coal reserves, essentialin the production of steel. Thecompany expects to start min-ing in 2017, and to extractaround 2 million tons of coalper year.

“We are strategically locat-ed in the region, and NWRsupplies to a blue-chip cus-tomer base, includingArcelorMittal, CEZ, Dalkia,Dunaferr, Moravia Steel, U.S.Steel, Verbund andVoestalpine, located in coun-tries including Poland, Austria,the Czech Republic, Germany,Hungary and Slovakia,” saidMr Klinowski.

Another raft of invest-ments will soon take place inthe sector of coal-based powergeneration. Two-thirds of theinstalled coal capacity in

Poland was built more than 30years ago, and almost a quar-ter of the current generationcapacity will have to be phasedout by 2015, according toEURACOAL. Additionally,Polish energy consumption,still low in comparison toWestern Europe, is scheduledto grow significantly in thecoming years.

“Consumption of electricalenergy in Poland is not even

half of that in WesternEurope,” said Tomasz Chmal,an energy expert at the Sobies-ki Institute, a think thank.“Thus, there is massive poten-tial for growth in the power-generation sector, as demandin Poland heads up towardsthe Western European levels,”he added.

According to the govern-ment’s “Energy Policy ofPoland until 2030,” electricity

consumption in 2030 is expect-ed to increase by 30 percent,gas consumption by 42 percentand consumption of petrole-um products by 7 percent.Until 2025, the Polish sector isexpected to see new invest-ments generating nearly

30,000 MW of capacity, with atotal value of z∏.220 billion,according to research firmPMR.

Poland’s first two nuclearpower plants, due to comeonline after 2020, account forthe bulk of the sum, and not all

Despite Poland’s commitment to European CO2emissions reduction targets, several majorinvestments indicate that the country’s coalindustry isn’t going anywhere

Brendan Melck, Alice Trudelle

In 2009, coal was responsible for 43 percent of global CO2emissions, according to the International Energy Agency.Poland holds the dubious record of having the most-pollutingplant in Europe (PGE’s Elektrownia Be∏chatów power plantin Rogowiec, which produced 29.5 million metric tons of CO2in 2009) and of being the second-biggest polluting country inEurope, behind Germany, according to the European Envi-ronment Agency. ●

Poland the polluter

Biomass

Undefined

Lignite

Natural gas

Hard coal

Nuclear

43%

34%

12%

9%1%

1%

Powering upPlanned power investments by source and share of the totalplanned investments in Poland, 2010-2025

Source: PMR

Lignite (brown coal)

Lignite, or brown coal, is the lowest rank of coal and is usedalmost exclusively as fuel for electric power generation.Poland is the second-largest producer of lignite in Europe. In2010, total lignite production reached 56.3 million metric tons.Lignite-fired power stations generated 48.7 terawatt hours(TWh) of electricity, representing 30.9 percent of the totalpower generated in Poland, according to numbers fromEURACOAL.

Anthracite (hard coal)

Anthracite, or hard coal, is the highest rank of coal and is usedprimarily for residential and commercial space heating.Poland’s hard-coal reserves form 78 percent of the EU total.Commercially workable hard-coal reserves are located in pri-marily in the Upper Silesian basin, which accounts for 93 per-cent of the total Polish and half of EU hard-coal production.Output in 2010 was 76.6 million tons, according toEURACOAL.

Types of coal and their production in Poland

SH

UT

TE

RS

TO

CK

Poland’s coal-powered Be∏chatów plant is Europe’s most-polluting

JANUARY 16-22, 2012 COVER STORY www.wbj.pl 13

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

CO2 allowances: EU versus Poland

Legal Eye

Poland and the EU continue to be atloggerheads with respect to variouselements of EU energy policy, includ-ing how to achieve the EU’s CO2reduction targets. At present Poland,along with each of the other EUmember states, is obligated to reducethe amount of CO2 emissions by a fac-tor of 20 percent by 2020 as measuredagainst 1990 levels. The EU Commis-sion, however, has sought to adopt aneven more ambitious CO2 reductiontarget of 30 percent by 2020, whichPoland has led the charge to block.The history of Polish-EU energycooperation can best be described asan aggressive tango, with each sideseeking to lead at various points intime.

Poland wins the first roundOn April 19, 2010, after nearly twoyears of litigation before the Euro-pean Court of Justice, the EU Com-mission finally dropped its oppositionto Poland’s National Allocation Plan,by which the amount of CO2 emissionallowances allocated by Poland tolocal industry under the EU Emis-sions Trading System for the period

2008-2012 was set. The EU Commission had taken

Poland to task for being overly gener-ous in the number of allowances givento industry, as well as the mannerPoland had set aside reserveallowances for CO2 emitters not yet inexistence. Poland had allocated up to208.5 metric tons in CO2 allowancesto Polish industry on an annual basis.Within this figure Poland had also setaside allowances for companies notyet in existence, in effect creatingmore allowances than actual CO2emissions.

On this final point the EU Com-mission had objected, but followingthe submission of an amendedNational Allocation Plan by Poland,the EU Commission relented. The 20percent reduction target, as well as thenumber of CO2 allowances, remainsunchanged. Beyond 2012 the numberof annual CO2 allowances is to begradually reduced.

Was Poland right?Pursuant to Art. 9 of Directive2003/87/EC, each member state “shalldevelop a national plan stating the

total quantity of allowances that itintends to allocate” to CO2 emitters.EU law does not in fact specify thenumber of emission allowances that amember state may issue to a particu-lar industry or greenhouse gas emit-ter. Nor does EU law impose an over-all cap on the total number of emis-sion allowances granted by eachmember state. In lieu of defining spe-cific caps for each member state, EUlaw merely provides for certain crite-ria to be observed by each memberstate in calculating the number ofallowance points to be included ineach State’s National Allocation Plan.

For instance, the total quantity ofallowance points should be consistentwith a member state’s obligation tolimit its emissions in accordance withthe Kyoto Protocol. Specifically, “thetotal quantity of allowances to be allo-cated shall not be more than is likelyto be needed for the strict applicationof the criteria” defined in Annex III toDirective 2003/87/EC. In other words,the number of allowance points is notclearly defined, and on this basisPoland prevailed in its standoff withthe EU Commission.

The cost to industryAs of today, approximately 90 percentof all emission allowances granted byPoland under its National AllocationPlan to local industry have been givenaway for free or at a nominal charge,in large part due to Poland’s decisionto award as many allowances as neces-sary to cover current emissions.

This does not mean, however, thatthe industry has not already incurred acost to comply with the EU’s CO2reduction targets. Beginning in 2013the number of emission allowancesgranted for free each year to theindustry will be reduced, therebyincreasing the price of the remainingallowances. In anticipation of suchcosts, Polish industry players havebegun to invest in newer technologiesto reduce CO2 emissions.

Poland delays second roundDespite reaching agreement with theEC in 2010 on the amount of its CO2allowances, Poland again finds itselfon the defensive with respect to itsNational Allocation Plan. Germany,France and the UK have called forraising the CO2 emission reduction

target from the current 20 percent to30 percent by 2020. In June 2011Poland led the fight against an EUCommission proposal to increasethe reduction in CO2 emissions to 30percent, with the European Parlia-ment defeating such a proposal by amere nine votes.

In July 2011 Poland took over therevolving six-month presidency ofthe EU, in effect blocking any fur-ther attempt by other member statesto push for further reductions duringthe second half of 2011. Now, how-ever, under the Danish presidency, arenewed push to adopt a more ambi-tious CO2 reduction plan is expect-ed, as well as an effort to boost theprice of emission allowances byreducing the number of emissionallowances trading on the EU’sEmission Trading System.

Time will tell if Poland can con-tinue to persuade enough fellowmember states to vote againsttougher CO2 reduction targets, orwhether it will be forced to use itsveto in the EU Commission to blockany attempt to increase the target to30 percent. ●

the other planned projects areexpected to be implemented,depending on economic cir-cumstances. Nevertheless, one-third of the new projects arehard-coal-fired units, leadingto investments totaling severalbillion z∏oty and a new capaci-ty of thousands of megawattsof coal power in the next fewyears (see table).

EnvironmentalconcernsMany of the planned invest-ments are replacements andshould have higher energy effi-ciency than the old plants. “Wefeel that if we combine newtechnologies, enabling us toget higher energy efficiency incoal-powered plants, from anaverage 30 percent currentlyto 45 percent, which is attain-able due to the newest tech-nologies, we get a reduction ofCO2 by about 30 percent, closeto the emissions from gasplants,” Pawe∏ Olechnowicz,chairman of the board ofdirectors of lobby group Cen-tral Europe Energy Partners(CEEP), said in a statement.CEEP represents 11 energycompanies from the CEE,including Poland’s Enea,Energa, JSW, Kulczyk Invest-ments, Lotos, Tauron and

W´glokoks.But it remains that, on

average, coal emits over twiceas much CO2 as natural gas inelectricity generation, andenvironmentalists arguePoland shouldn’t lock itselfinto a carbon-intensive energyproduction model for decadesto come by making massivenew investments. According toKarolina Jankowska, a mem-ber of Poland’s green party,Zieloni 2004, the Polish gov-ernment lacks the political willto push forward renewableprojects.

“The Polish government

defends the competitivenessof the coal industry – forexample, by handing out freeCO2 emissions rights – whichis a major barrier for thedevelopment of renewableenergy,” she said.

“More than two years afterthe announcement of thedirective on renewable energysources, there still has beenno legal act passed whichwould ensure its implementa-tion. In the meantime, anentire package of legal actshas been passed regarding therealization of the nuclearenergy program, and also the

national plan for dividing upemissions rights,” Ms Jan-kowska added.

But the Polish governmentfaces significant political pres-sure when it comes to its hugecoal industry. According to areport on the coal market inthe EU in 2010-2011 pre-pared for the European Com-mission, Poland’s coal indus-try directly employs 127,400people, over half of the totalEU coal workforce.

Both the Polish govern-ment and CEEP argue thatPoland needs to exploit itsavailable coal energyresources in order to remaineconomically competitive.This position seems to enjoystrong support among thePolish public, with 68 percentof Poles in favor of using coalas a source of energy (16 per-cent in strongly and 52 per-cent fairly) and only 26 per-cent opposed (22 fairly and 4percent strongly), accordingto a May 2011 EU-wide sur-vey by the European Com-mission. These figures makePoles the strongest coal sup-porters in the EU.

Fuel for the fireIt now seems that circum-stances are converging to put

Poland’s love for coal in amore acceptable light at theEU level.

A few years ago, so-called“clean coal” technologiessuch as Carbon CaptureStorage (CCS) were believedcapable of bringing coal backinto fashion. That has nothappened, and “the reality issuch that up till now CCS isnot economically viable,”said CEEP’s Pawe∏ Olech-nowicz. But coal’s availabili-ty and low cost have becomemore appealing, especially inlight of political instability inthe Middle East that haspushed up the price of oil,Russia’s enduring politicalcontrol over its gas exportsand the nuclear disaster inJapan last year.

European Commissionerfor Energy Günther Oet-tinger recognized thisrecently, stating, “In recentyears, global geopoliticaldevelopments, global eco-nomic turbulence and some-times extreme energy priceshave demonstrated the needfor an increasingly strategicapproach to EU and nationalenergy policies.”

He added, “Citizens andindustry are clearly relianton energy, particularly elec-tricity, and require it to beavailable at all times and ataffordable prices. Together,coal and lignite account foralmost 30 percent of EUelectricity generation, muchmore in some memberstates. … We cannot do with-out coal today.”

But the real game chang-

er might be Europe’s eco-nomic slowdown, whichmakes cheap, readily avail-able coal more attractive.

“My point of view on thissubject is that climate-change politics is compound-ing the difficult economic sit-uation in Europe, and devel-oping countries understandthis, and are not especiallyconcerned about theseissues, concentrating insteadon their economic growth –while Western Europe is try-ing to fight with windmills,and plunges even furtherinto crisis,” said the SobieskiInstitute’s Tomasz Chmal.Mr Chmal also argued thatreducing Poland’s dependen-cy on coal could also affectindividual consumers bydriving energy prices higher.“It’s about end-users payingthe lowest price possible inthe given conditions,” hesaid.

This doesn’t mean that areturn to coal as the mainenergy source in Europe is inthe cards, or that it will soonlose its reputation as a dirtyand old-fashioned fuel.Reducing CO2 emissions isalso likely to remain a rela-tively high policy priority forthe EU.

But with EU GDP growthforecast to ease by 1 percent-age point in 2012 fromalready low growth of 1.6 per-cent in 2011, and Polish GDPgrowth expected to slow byabout half (from 4 to 2.5 per-cent), it’s unlikely that coal’sopponents will gain muchtraction any time soon. ●

Coal bountySome of the major announced investments in coal-fired power plants

Company Location Capacity (MW) Scheduled completion Estimated cost (z∏. billion)

Elektrownia Pó∏noc Rajkowy 2,000 - z∏.12.4-15.4 blnPGE Elektrownia Opole 1,800 2016- 2017 z∏.11 blnEnerga Ostro∏´ka 850-1,000 2016-2017 z∏.6-7 blnEDF Rybnik 900 - z∏.7.2 blnTauron Bielsko-Bia∏a 182 2013 -Enea Kozienice 1,000 2016 -

%

5

10

15

20

25

30

Oth

ers

Slov

akia

Swed

enHu

ngar

yEs

toni

aD

enm

ark

Belg

ium

Aust

riaRo

man

iaSp

ain

Neth

erla

nds

Gre

ece

Finl

and

Bulg

aria

Fran

ceIta

lyCz

ech

Repu

blicUK

Pola

ndG

erm

any

Europe’s coal burnersEstimated share of EU CO2 emissions from combustionof solid fuels

Source: “The Market for Solid Fuels in the European Union

in 2010 and the Outlook for 2011”

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 • JANUARY 16-22, 2012, LI 17/02

Echo acquires

former

Mercure hotel

Echo Investment and

Ravenna Warszawa have

signed a purchase and

sale agreement

concerning the former

Mercure hotel building in

central Warsaw. The value

of the transaction, which

concerns a 3,300-sqm plot

and a building which

housed the hotel, amounts

to €31 million. Echo

Investment is planning to

demolish the former hotel

building and develop a

new office tower on the

site. The scheme, for

which the company has

already obtained a

planning decision, will

stand 155 meters tall and

comprise some 50,000

sqm of space.

Rank Progress

sells plots

Real estate investor and

developer Rank Progress

has sold plots in Miejsce

Piastowe near Krosno,

Podkarpackie voivodship,

totaling 2.9 hectares and

housing a newly built OBI

DIY hypermarket, to

Superhobby Market

Budowlany. The value of

the transaction amounted

to z∏.31.8 million, with the

money from the deal

expected to help finance

Rank Progress’ planned

investments. The deal

marks the fourth sale

transaction signed by

Rank Progress over the

last 12 months. ●

Airport

Warsaw Chopin Airport terminal in for z∏.300 million reconstructionConstruction isexpected to finish bythe end of 2013

Polish Airports State Enter-prise (PPL), the manager of theWarsaw Chopin internationalairport in the Polish capital, isplanning to reconstruct the oldpart of the facility’s main pas-senger terminal after this year’sUEFA Euro 2012 soccer cham-pionship.

The PPL has justannounced a tender for thegeneral contractor of the invest-ment, whose value is estimatedat z∏.300 million. Bids can bemade until January 23, withconstruction expected to start inautumn this year and finish bythe end of 2013.

The section of the terminalbuilding which is to be modern-ized was originally opened inthe early 1990s. PPL has nowcome to the conclusion that itscurrent technical conditionrequires that it be thoroughlyrenovated.

The renovation project,whose design was prepared bythe Spanish Estudio Lamela

architectural firm, envisions thearchitectural, technical andfunctional integration of the oldpart of the terminal with thenew one, which became fullyoperational in March 2008.

At the same time, the invest-ment will involve the develop-ment of a tunnel which will con-nect the airport terminal with anearby new underground rail-way station, construction on

which is just finishing.In autumn last year, con-

struction was launched on anew five-star hotel at WarsawChopin Airport. Future invest-ments in the vicinity of the air-

port will include the develop-ment of Chopin Airport City, amixed-use commercial complextotaling more than 150,000 sqmof space.

Adam Zdrodowski

GTC completes Corius office building in WarsawWarsaw Stock Exchange-list-ed developer Globe TradeCentre (GTC) has deliveredits Corius office building proj-ect in Warsaw. The structureconstitutes the third phase ofthe company’s Ok´cie Busi-ness Park investment in thecity.

The seven-storey Coriusbuilding, whose general con-tractor was Unibep, has pro-vided 8,840 sqm of class-Aoffice space, more than 80percent of which has alreadybeen commercialized. Tenantsincluding EGIS, Pandora A/Sand YES Airways will soonmove into the facility.

Located on Warsaw’s ul. 17Stycznia, close to the capital’sinternational airport, the Ok´-cie Business Park complex wasdesigned by the APAKury∏owicz & Associatesarchitectural studio and is cur-rently in the process of obtain-ing LEED certification.

The first two buildings inthe park – Nothus andZephirus – were completed in2008 and are currently fullyleased out. Their tenantsinclude Novo Nordisk, Avon,Moeller Electric and Mit-subishi.

When completed, thewhole Ok´cie Business Park

complex is expected to com-prise six buildings with atotal of approximately 60,000sqm of leasable space. GTChas not yet decided whenconstruction on the nextphase of the developmentwill launch.

Established in 1994 in War-saw, GTC has to date devel-oped approximately 1,000,000sqm of space and currentlyowns completed commercialproperties totaling some539,000 sqm. Corius is the 19th

office building completed bythe developer in the Polishcapital.

Adam Zdrodowski

Warsaw airport

reconstruction . . . . . . . . . . . . . .15

GTC’s Corius finished . . . . . . . .15

PZU’s property fund . . . . . . . . .16

PPP hospital . . . . . . . . . . . . . . . .16

Wolf’s Lair lessee . . . . . . . . . . . .16

Property-related stocks . . . . . .16

InCity contractor . . . . . . . . . . . .18

New Ronson schemes . . . . . . .18

Green Office sale . . . . . . . . . . . .18

In this issue

1816

Hitler’s Wolf’s Lair WWII head-quarters in northeasternPoland needs a lessee

Azora Europa has acquiredtwo buildings in Kraków’sGreen Office complex

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Bids for the tender to reconstruct the terminal can be made until January 23

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

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six buildings with 60,000 sqm of leasable space in total

JANUARY 16-22, 2012LOKALE IMMOBILIA – REAL ESTATE16 www.wbj.pl

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

on Jan 12 (z∏. mln)

BUDIMEX 78.40 1.82 64.00 109.20 -24.40 25,530,098 2,001.56

CELTIC 16.80 -4.11 15.55 24.89 -23.25 34,068,252 572.35

DOMDEV 28.34 -3.64 23.50 50.80 -36.30 24,560,222 696.04

ECHO 3.56 4.71 3.05 5.55 -25.83 420,000,000 1,495.20

ELBUDOWA 98.80 2.92 87.00 169.90 -41.68 4,747,608 469.06

ENERGOPLD 2.04 12.71 1.81 4.10 -44.72 70,972,001 144.78

ERBUD 19.50 12.07 14.65 54.55 -64.42 12,644,169 246.56

GANT 7.59 22.03 5.85 17.60 -56.13 20,499,953 155.59

GTC 7.99 -8.89 7.91 24.60 -67.25 219,372,990 1,752.79

HBPOLSKA 0.92 13.58 0.70 2.99 -69.44 210,558,445 193.71

JWCONSTR 6.50 12.46 4.36 15.50 -58.60 54,073,280 351.48

LCCORP 0.96 9.09 0.85 1.69 -36.84 447,558,311 429.66

MARVIPOL 8.95 0.56 7.22 10.24 -11.91 36,923,400 330.46

MIRBUD 2.11 6.03 1.94 4.75 -48.66 75,000,000 158.25

MOSTALWAR 16.24 -0.37 15.40 56.35 -72.57 20,000,000 324.80

MOSTALZAB 1.41 6.02 1.07 3.00 -50.70 149,130,538 210.27

ORCOGROUP 15.18 0.20 14.00 40.00 -46.53 17,053,866 258.88

PBG 82.40 8.64 56.05 210.00 -61.13 14,295,000 1,177.91

PLAZACNTR 2.49 22.06 1.80 5.15 -43.67 297,174,515 739.96

POLAQUA 5.35 4.09 4.53 20.60 -69.86 27,500,100 147.13

POLIMEXMS 1.78 7.23 1.23 3.89 -54.94 521,154,076 927.65

POLNORD 14.44 7.20 11.03 33.59 -55.91 23,798,439 343.65

RANKPROGR 9.70 -1.52 8.60 13.60 -10.10 37,145,050 360.31

ROBYG 1.22 10.91 1.04 2.13 -32.97 257,390,000 314.02

RONSON 0.85 3.66 0.77 1.58 -41.78 272,360,000 231.51

TRAKCJA 1.05 47.89 0.65 4.00 -73.35 232,105,480 243.71

ULMA 64.35 -0.08 57.00 88.00 -22.05 5,255,632 338.20

UNIBEP 5.75 -4.01 4.47 10.00 -41.92 33,927,184 195.08

WARIMPEX 3.15 -2.48 2.95 10.89 -66.84 54,000,000 170.10

ZUE 6.10 12.96 5.07 14.54 -57.87 22,000,000 134.20

Property-related stocks

Lessee needed for Hitler’sWolf’s Lair headquarters

The State Forests NationalForest Holding, which onbehalf of the State Treasurymanages the Wolf’s Lair (Wil-czy Szaniec), the formerheadquarters of Adolf Hitlerin Gier∏o˝ near K´trzyn,Warmiƒsko-Mazurskie voi-vodship, is looking for a newlessee for the 250-hectarecomplex.

Hidden in the depths ofthe Mazurian forests, thebunker complex was one ofHitler’s main headquartersduring WWII. The Germanleader stayed in the facility in

the years 1941-1944 and it wasthere that the famous attempton his life of July 20, 1944,took place.

Some of the structures inthe complex survived the warand have in recent years beena major tourist destination,attracting from 180,000 to200,000 visitors annually.However, the previous leaseagreement has expired andthe complex’s website nowsays the facility remainsclosed until further notice.

A tender procedure is cur-rently underway to select a new

lessee, who is expected to signa lease agreement for the next20 years. The winning entitywill be obliged to preserve theWolf’s Lair as a tourist destina-tion and upgrade its existingtourist infrastructure.

The Wolf’s Lair complex,which is entered into a histor-ical properties register, is tosee its hotel, restaurant andcinema modernized. The newlessee will also be expected todeliver conference space andto modernize and expand theexisting parking lots.

Adam Zdrodowski

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The Wolf’s Lair is located in Warmiƒsko-Mazurskie voivodship

PPP hospital in ˚ywiec receivesapproval for design concept

The design concept for thefirst-ever public-private part-nership health-care facility inPoland – a hospital on ul. PolaLisickie in ˚ywiec – has beenapproved by the local countycouncil.

“The concept design stipu-lates the highest architecturalstandards and maximum effi-ciency of the hospital,”George Commander, CEO ofthe project’s investor,InterHealth Canada, said in astatement.

In September 2011,InterHealth, a Toronto-based

health-care management firm,signed a z∏.200 million con-tract with ˚ywiec county forthe construction of the facility.

The hospital is to providehealth care for ˚ywiec county,and is to offer general acutecare services and ambulatorycare, prophylactic medicine,elective procedures and “cut-ting edge” diagnostics,InterHealth wrote.

Construction is due to startin October 2012, with work onthe project expected to take 24months.

A total of 24,000 sqm of

space will be built over fourstoreys. The scheme will housea fully integrated surgicalward, an accident and emer-gency department with a heli-copter landing pad, and sever-al outpatient clinics.

InterHealth will now pre-pare a design for the buildingitself, as well as the documen-tation needed to obtain abuilding permit. The investorsays it plans to select the maincontractor by September 2012,following the completion of atender process.

Gareth Price

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The hospital will comprise 24,000 sqm of space

PZU

PZU plans z∏.1.5 billion in real estate investments

The insurer isinterested in officebuildings, warehousesand shopping centers

PZU, Poland’s largest insurer,plans to allocate z∏.500 mil-lion to a real estate fundwhich it expects to generate a

net annual rate of return of 8percent.

Currently the fund’s assetsamount to some z∏.150 million,but this will ultimately rise toz∏.500 million. In total, thefirm plans to invest some 3-3.5percent of its assets – or aboutz∏.1.5 billion – in real estate.

“We will invest almostexclusively in shopping cen-ters, warehouses and officebuildings. In addition to a sta-ble cash flow, the great advan-tage of such investments is theindexation of rents, whichprotects against inflation,”PZU vice president RyszardTrepczyƒski told LokaleImmobilia.

Mr Trepczyƒski said thatPZU has received its invest-ment certification and thatthe company has alreadyacquired its first propertiesfollowing the purchase ofoffice buildings on the Polishcoast in deals worth morethan z∏.100 million.

“So far, our only realestate funds are those ofPZU Group ... but we hopethat there are also externalclients willing to entrust theirmoney to us,” Mr Trepczyƒs-ki added.

In the third quarter of 2011PZU made a net profit ofz∏.304.5 million, significantlyless than the z∏.704.3 million itmade for the same period ayear earlier. The decrease inprofit was a result of lowerinvestment returns.

David Ingham

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PZU has already purchased office properties worth

more than z∏.100 million

JANUARY 16-22, 2012LOKALE IMMOBILIA – REAL ESTATE18 www.wbj.pl

Jaros∏aw mall

to openA new retail center,

Centrum Handlowe

Pruchnicka, is set to

open on January 26 in

the southeastern city of

Jaros∏aw, in the

Podkarpackie

voivodship. The value of

the investment is

estimated at z∏.20

million. The mall will be

sited on approximately

7,400 sqm of land.

Jaros∏aw has a

population of around

40,000, but neighboring

urban areas such as

Przeworsk and

Lubaczów will give the

retail center a

catchment area

inhabited by close to

150,000 potential

clients.

B&B

Warszawa-

Ok´cie opensA new B&B Warszawa-

Ok´cie hotel opened in

the Polish capital at the

end of December

following 10 months of

construction. A part of

the French B&B Hotels

hospitality chain, the

five-floor investment is

located on Warsaw’s Al.

Krakowska, close to the

city’s international

airport, and comprises

154 rooms. The B&B

Hotels chain currently

has two facilities in

Poland – apart from the

newly opened project in

Warsaw it also has a

scheme in Toruƒ,

Kujawsko-Pomorskie

voivodship. Construction

is expected to launch

soon on new

developments in ¸ódê

and Wroc∏aw. ●

Residential

Okam Capital selects

contractor for InCity

project in Warsaw

Unibep has beenchosen to overseeconstruction of thescheme’s four buildings

Developer Okam Capital hasselected construction companyUnibep as the general contrac-tor of its InCity multi-familyresidential project in Warsaw.The value of the agreementamounts to z∏.101 million.

The investment is locatedbetween ul. Siedmiogrodzka,ul. Karolkowa and ul. Gie∏dowain the capital’s Wola district,close to the Warsaw RisingMuseum and the plannedRondo Daszyƒskiego subwaystation. It will comprise 487apartments whose prices startat z∏.7,500 per sqm.

The development has beendesigned by the Grupa 5 archi-tectural studio and will be com-posed of four eight-storeybuildings, one of which will alsofeature a taller, 17-storey sec-tion. The scheme will include atwo-level underground parkinglot with 471 parking spaces.

“The development of a proj-ect with almost 500 units testi-

fies to our company’s belief inboth the Warsaw real estatemarket and the stability of thePolish economy,” Arie Koren,managing director of OkamCapital, said in a statement.

“I believe that InCity will fitperfectly into the urban textureof central Warsaw, especiallysince the area of our investmenthas been evaluated highly notonly by us, but also by manyother developers planningoffice and entertainment proj-ects [there],” Mr Koren added.

The InCity development hasheld a valid building permitsince 2009. Construction on thescheme will launch next monthwith the first phase of theinvestment scheduled to becompleted in the final quarterof 2013.

Okam Capital was estab-lished in 2010 as a capital groupfollowing the joint venture ofOkam and Aurec Capital. Inthe near future, the companyplans developments including asingle-family house complex inKonstancin near Warsaw and abusiness center in downtown¸ódê. Adam Zdrodowski

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The InCity scheme will comprise 478 apartments

Ronson Development to boost its

residential offer this yearWarsaw Stock Exchange-listeddeveloper Ronson Develop-ment is planning to launch upto 14 new housing projectsacross Poland this year in a bidto grow the number of its unitson offer from an average of 600in 2011 to approximately 1,000in 2012.

The new schemes, which willcomprise some 1,350 apart-ments in total will be located inWarsaw, Poznaƒ, Wroc∏aw andSzczecin and will include bothconsecutive phases of the com-pany’s ongoing investments andcompletely new developmentswhich are now in the preparato-ry phase.

In Warsaw, the latter catego-ry will comprise Espresso inWola, Magellan in Mokotówand Tamka in the capital’s cen-tral district. In Poznaƒ, Ronsonwill build projects called New-ton and Eclipse while a newinvestment called Matisse hasbeen planned in Wroc∏aw.

In 2011, Ronson sold 360

apartments, which was almost34 percent more than the previ-ous year, when 269 units wereoffloaded. Keys were turnedover to the new owners of 117Ronson homes.

“Last year was the best onein terms of sales in our 13-yearhistory, which we owe to thedevelopment of our offer and

very proactive sales activities,”Andrzej Gutowski, sales andmarketing director at RonsonDevelopment, said in a state-ment.

He added that the compa-ny’s main goal for this year isthe achievement of a sales levelof more than 500 apartments.

Adam Zdrodowski

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Espresso is one of the new projects that Ronson

Development will launch in Warsaw

Azora Europa fund buys twooffice buildings in KrakówThe Azora Europa investmentfund has acquired two modernoffice buildings in Kraków’sGreen Office complex fromdeveloper Buma Group. Thevalue of the transaction, whichwas brokered by Jones LangLaSalle, has not been revealed.

The deal involves the saleof Building A and Building Bin the complex, which werecompleted in October andMay 2011, respectively. Thestructures comprise a total of11,300 sqm of space and areoccupied by Motorola Solu-tions Polska.

The whole Green Officecomplex, which is located onKraków’s ul. Czerwone Maki,is composed of three four-storey class-A office buildings.The total leasable area of thedevelopment amounts to21,300 sqm.

The investment wasdesigned by the Kraków-basedUCEES architectural studio.The third, under-constructionbuilding in the complex is nowbeing commercialized and isexpected to open for businesslater this year.

Part of Azora International

Group, the Azora Europa fundwas established in 2007 andmanages €700 million of capi-tal. Its main shareholders areSpanish savings banks, pensionfunds and private investors.

Azora Europa is active inthe CEE and SEE regions andcurrently owns a portfolio offour office buildings in War-saw, Kraków and Prague,worth a total of €110 million.The fund is also the investor oftwo residential projects in thePolish capital and plans newacquisitions this year.

Adam Zdrodowski

JANUARY 16-22, 2012 www.wbj.pl 19MARKETS

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PLN-EUR

4

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currency rates

Optimism

evaporates

Currency report

Currencies kicked off lastweek by rebounding afterthe declines of the previousweek. Volatility was modestand market movementswere not big. Investors gotmore action on Thursday,after a successful auction oftreasury bills in Spain andItaly drove bond yieldsdown in those countries.

The ECB left interestrates unchanged at 1 per-cent last Thursday, but thistime the markets did notreact much, thus confirm-ing that three-year liquidityloans are slowly being usedby banks to lend to the realeconomy, rather than beingdeposited immediately.The EUR/USD climbed toits weekly high of 1.2875,accompanied by appreciat-ing emerging markets cur-rencies.

Optimism was back and

it seemed the week wouldend on a positive note. Fri-day, however, brought asudden turn of events, withrumors suggesting that rat-ings agency Standard &Poor’s would “imminently”downgrade several euro-zone countries. Currenciesturned around dramatical-ly, with the EUR/USD tum-bling to $1.27. Later thatday, S&P confirmed thatFrance had lost its topAAA credit rating.

Surprisingly, the z∏otydid not follow theEUR/USD this past weekas it usually does. The localcurrency kept appreciatingthroughout the week withthe EUR/PLN reachingz∏.4.41 (z∏.4.48 at the startof the week) and theUSD/PLN going fromz∏.3.52 to z∏.3.48 (weeklylow at z∏.3.41). ●

Adam Narczewski, X-TradeBrokers Dom Maklerski SA

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Major indices

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

HERMAN 2.35 70.29 2.35 0.45TRAKCJA 1.05 47.89 4.05 0.63NTTSYSTEM 0.82 38.98 1.13 0.41WISTIL 6.70 24.07 25.00 5.33EKOEXPORT 9.95 24.06 10.26 4.28

WIG 38,062.87 (January 12 close)

Change for the week: 0.86% 52-week high: 50,371.74

Change year to January 12: -0.67% 52-week low: 36,549.47

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

PBG 82.40 8.64 211.80 53.70KGHM 123.60 8.42 200.30 102.40PGE 1.78 7.23 25.07 15.98TAURONPE 13.20 3.94 6.81 4.65PZU 4.07 3.56 398.60 283.10

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

UNICREDIT 12.75 -42.05 30.70 2.89PWRMEDIA 0.75 -17.58 1.26 0.62NOVAKBM 13.00 -13.33 34.70 10.53ALTERCO 37.01 -12.92 47.98 29.20INTAKUS 0.95 -12.04 1.64 0.61

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

GETIN 2.31 -11.15 15.29 2.29GTC 7.99 -8.89 24.74 7.86PKOBP 31.16 -3.02 46.66 27.95PGE 20.53 -2.89 25.07 15.98TVN 9.94 -2.36 18.53 8.90

WIG20 2,166.99 (January 12 close)

Change for the week: 0.44% 52-week high: 2,932.62

Change year to January 12: -1.24% 52-week low: 2,089.84

mWIG40 2,200.93 (January 12 close)

Change for the week: 1.91% 52-week high: 2,987.72

Change year to January 12: 0.49% 52-week low: 2,076.52

sWIG80 8,741.09 (January 12 close)

Change for the week: 1.62% 52-week high: 12,932.00

Change year to January 12: 1.59% 52-week low: 8,218.71

NewConnect 41.61 (January 12 close)

Change for the week: 0.64% 52-week high: 62.11

Change year to January 12: -0.80% 52-week low: 40.16

WIG-Banki 5,303.60 (January 12 close)

Change for the week: -1.18% 52-week high: 7,387.49

Change year to January 12: -4.32% 52-week low: 4,944.19

DJIA12,471.02 (Jan 12 close)

0.45% (for the week)

CHANGE: 0.59%

(year to Jan 12)

52-week high: 12,876.00

52-week low: 10,404.49

NASDAQ2,724.70 (Jan 12 close)

2.05% (for the week)

CHANGE: 2.87%

(year to Jan 12)

52-week high: 2,887.75

52-week low: 2,298.89

S&P5001,295.50 (Jan 12 close)

1.13% (for the week)

CHANGE: 1.44%

(year to Jan 12)

52-week high: 1,370.58

52-week low: 1.074.77

FTSE1005,662.42 (Jan 12 close)

0.68% (for the week)

CHANGE: -0.66%

(year to Jan 12)

52-week high: 6,105.77

52-week low: 4,791.01

DAX6,179.21 (Jan 12 close)

1.37% (for the week)

CHANGE: 1.71%

(year to Jan 12)

52-week high: 7,600.41

52-week low: 4,965.80

NIKKEI2258,385.59 (Jan 12 close)

-1.21% (for the week)

CHANGE: -2.04%

(year to Jan 12)

52-week high: 10,891.60

52-week low: 8,135.79

world stock indices

14.1

2

15.1

2

16.1

2

19.1

2

20.1

2

21.1

2

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

02.0

1

03.0

1

04.0

1

05.0

1

09.0

1

10.0

1

11.0

1

12.0

136,000

36,600

37,200

37,800

38,400

39,00014

.12

15.1

2

16.1

2

19.1

2

20.1

2

21.1

2

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

02.0

1

03.0

1

04.0

1

05.0

1

09.0

1

10.0

1

11.0

1

12.0

12,000

2,060

2,120

2,180

2,240

2,300

14.1

2

15.1

2

16.1

2

19.1

2

20.1

2

21.1

2

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

02.0

1

03.0

1

04.0

1

05.0

1

09.0

1

10.0

1

11.0

1

12.0

12,000

2,060

2,120

2,180

2,240

2,300

3 0 0 0 0 0

14.1

2

15.1

2

16.1

2

19.1

2

20.1

2

21.1

2

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

02.0

1

03.0

1

04.0

1

05.0

1

09.0

1

10.0

1

11.0

1

12.0

1

8,100

8,240

8,380

8,520

8,660

8,800

14.1

2

15.1

2

16.1

2

19.1

2

20.1

2

21.1

2

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

02.0

1

03.0

1

04.0

1

05.0

1

09.0

1

10.0

1

11.0

1

12.0

1

39.0

39.6

40.2

40.8

41.4

42.0

14.1

2

15.1

2

16.1

2

19.1

2

20.1

2

21.1

2

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

02.0

1

03.0

1

04.0

1

05.0

1

09.0

1

10.0

1

11.0

1

12.0

1

5,200

5,280

5,360

5,440

5,520

5,600

Other indices

Choppy waters

Stocks report

Little seemed to havechanged as the first full weekof 2012 came to a close. Stockmarkets throughout Europe– including Poland’s WIG –remain at the mercy of policymakers and ratings agencies.For the WIG, the weekbeginning January 9 got off toa poor start, with the Polishbourse closing lower than itscounterparts. In part this wasdue to the WIG “catchingup” after a shorter week theweek before, though poorsentiment dominated afterFrench President NicolasSarkozy and German Chan-cellor Angela Merkelannounced that Greecewould receive no more aiduntil it agrees to a debt swapwith banks. The WIG fell1.05 percent.

On Tuesday, January 10,stocks headed higher afterratings agency Fitchannounced that France’s

credit rating would not belowered in the very nearfuture, as had been previous-ly planned. The WIG finishedthe day up 0.73 percent, ledby strong gains by PKN Orlenand KGHM. On Wednesday,January 11, the WIG onceagain dipped in to the red,shedding a quarter of a per-cent after poor growth wasannounced for the euro zonein Q4 2011. On Thursday,January 12, stocks experi-enced a mini-rally partiallydue to an announcement bythe Ministry of Finance thatproposed taxes on copperextraction would be reduced.Shares of KGHM – Poland’slargest copper producer –soared, closing nearly 8 per-cent higher.

On Friday, however, Pol-ish stocks lost steam, with theWIG closing 0.19 percentdown and the blue-chipWIG20 losing 0.03 percent. ●

Andrew Nawrocki,WBJ market analyst

JANUARY 16-22, 2012THE LIST20 www.wbj.pl

Corporate Services

Major Law Firms in PolandRanked by total number of board certified lawyers www.bookoflists.pl

Rank

Company nameAddressTel./FaxE-mailWeb page

Total number ofboard-certified

lawyers /Total number of

lawyers

Licensed advocates /

Licensed legaladvisors

Foreign /Tax advisors

Unlicensed lawyers(Master of Law

degree) /Training for license

Main specialization /Other specializations

Global affilationTotal employees /

Year founded

Top local executive /

Title

1

Domaƒski Zakrzewski Palinka Sp.k.Rondo ONZ 1, 00-124 Warsaw22 557-7600/22 557-7601dzp@dzp.plwww.dzp.pl

79141

1558

36

2337

Commercial and corporate lawMergers and acquisitions; trial law; PPP; infrastructure

WNDWND1993

Krzysztof A.Zakrzewski

Managing Partner

2

Salans D. Oleszczuk Kancelaria Prawnicza Sp.k.Rondo ONZ 1, 00-124 Warsaw22 242-5252/22 242-5242warsaw@salans.comwww.salans.com

77157

2243

48

2357

All specializationsWND

Salans2701991

Tomasz DàbrowskiManaging Partner

3

CMS Cameron McKenna Dariusz Greszta Sp.k.ul. Emilii Plater 53, 00-113 Warsaw22 520-5555/22 520-5556warsaw@cms-cmck.comwww.cms-cmck.com

72132

2043

63

2433

Commercial and corporate lawEnergy law; trial law; antimonopoly and

competition law

CMS Cameron McKenna andCMS

2401989

Andrew Koz∏owskiManaging Partner

4

Wardyƒski i Wspólnicy Sp.k.Al. Ujazdowskie 10, 00-478 Warsaw22 437-8200/22 437-8201warsaw@wardynski.com.plwww.wardynski.com.pl

67136

3344

17

1931

Tax advisory for business entitiesTrial law; mergers and aquisitions; commercial and

corporate lawLEX MUNDI

2491992

Tomasz Wardyƒski;Stefan Jacyno

Chairman Partner; ManagingPartner

5

So∏tysiƒski, Kawecki & Szl´zak Sp.k.ul. Wawelska 15B, 02-034 Warsaw22 608-7000/22 608-7070office@skslegal.plwww.skslegal.pl

65102

1151

34

532

Commercial and corporate lawMergers and acquisitions; intellectual and industrial

property law; trademark protection; arbitrage; trial law

Global Advertising LawyersAlliance; EuroITCounsel;International TrademarkAssociation; EuropeanEmployment Lawyers

Association; Attorney’s Club

2051991

Rudolf OstrihanskyManaging Partner

6

Wierciƒski, Kwieciƒski, Baehr Sp.k.ul. Polna 11, 00-633 Warsaw22 201-0000/22 201-0099biuro@wkb.com.plwww.wkb.com.pl

5050

913

-1

1612

Mergers and acquisitionsEnergy law; public orders; antimonopoly andcompetition law; intellectual and industrial

property law

TagLaw; Multilaw; TheAssociation of European

Lawyers; The InternationalNetwork of Boutique Law Firms;

Association Europea deAbogados

702004

Andrzej WierciƒskiManaging Partner

7

White & Case W. Dani∏owicz, W. Jurcewicz i Wspólnicy - Kancelaria Prawna Sp.k.ul. Marsza∏kowska 142, 00-061 Warsaw22 505-0100/22 505-0400warsaw@whitecase.com, www.whitecase.com

4482

1225

44

930

Mergers and acquisitionsSecurities and capital markets; banking and finance;

trial lawWhite & Case LLP

1331991

Jan MatejcekManaging Partner

7

Wierzbowski Eversheds Sp.k.ul. Jasna 14/16A, 00-041 Warsaw22 505-0700/22 505-0701kancelaria@eversheds.plwww.eversheds.pl

4467

2120

23

815

TMTCommercial and corporate law; antimonopoly and

competition law; trial lawEversheds International Limited

1051998

Krzysztof WierzbowskiManaging Partner

9

T. Studnicki, K. P∏eszka, Z. åwiàkalski, J. Górski Sp.k.ul. Jab∏onowskich 8, 31-114 Kraków12 427-2424/12 427-2333spcg@spcg.plwww.spcg.pl

4069

1525

-5

2923

Commercial and corporate lawTrial law; real estate; antimonopoly and

competition lawWND

691988

Tomasz Gizbert-StudnickiSenior Partner

10

Grynhoff, Woêny, Wspólnicy Sp.k.ul. Pi´kna 18, 00-549 Warsaw22 212-0000/22 212-0001warszawa@gwwl.plwww.gww.pl

3875

-28

-10

1225

TMTEnergy law; real estate; mergers and aquisitions

-92

1996

Stanis∏aw Grynhoff;Piotr Woêny

Unlimited partners

11

Koksztys Kancelaria Prawa Gospodarczego Sp.k.Al. Armii Krajowej 61, 50-541 Wroc∏aw71 335-1450/71 335-1450kancelaria@koksztys.plwww.koksztys.pl

3788

1320

22

3318

Commercial and corporate lawPublic orders; trial law; tax law

-2251999

Amadeusz KrawczykDirector

12

Clifford Chance, Janicka, Kru˝ewski, Namiotkiewicz i Wspólnicy Sp.k.ul. Lwowska 19, 00-660 Warsaw22 627-1177/22 627-1466warsawinfo@cliffordchance.com, www.cliffordchance.com

3565

824

31

3023

Commercial and corporate lawBanking and finance; trial law; real estate

Clifford Chance1341992

GrzegorzNamiotkiewicz

Managing Partner

12

Drzewiecki, Tomaszek & Wspólnicy Sp.k.ul. Belwederska 23, 00-761 Warsaw22 840-9500/22 840-9510dt@dt.com.plwww.dt.com.pl

3570

1817

--

1918

Real estate; investment processIntellectual and industrial property law; mergers and

acquisitions; trial lawInterlex; Terra Lex

831992

Zbigniew Drzewiecki;Andrzej Tomaszek

Managing Partners

14

Dewey & LeBoeuf Grzesiak Sp.k.ul. Ksià˝´ca 4, 00-498 Warsaw22 690-6100/22 690-6222woffice@dl.comwww.dl.com

3460

727

25

1312

Mergers and acquisitionsSecurities and capital markets; tax law; real estate

Dewey & LaBoeuf1161991

Jaros∏aw GrzesiakManaging Partner

14

Weil, Gotshal & Manges – Pawe∏ Rymarz Sp.k.ul. Emilii Plater 53, 00-113 Warsaw22 520-4000/22 520-4001pawel.rymarz@weil.comwww.weil.com

3466

624

52

1220

Mergers and acquisitionsSecurities and capital markets; trial law;

venture capital and private equityWeil, Gotshal & Manges

1271991

Pawe∏ RymarzManaging Partner

16

Hogan (Warsaw) LLP Sp.p. Oddzia∏ w Polsceul. Nowogrodzka 50, 00-695 Warsaw22 529-2900/22 529-2901hoganlovells.warsaw@hoganlovells.comwww.hoganlovells.com

3368

825

13

3624

Commercial and corporate lawReal estate; banking and financial institutions; tax law

Hogan Lovells1221991

Beata Balas-NoszczykManaging Partner

17

Allen & Overy, A. P´dzich Sp.k.Rondo ONZ 1, 00-124 Warsaw22 820-6100/22 820-6199warsaw@allenovery.comwww.allenovery.com

3264

428

11

3018

Banking and financeMergers and acquisitions; capital markets;

commercial and coroprate lawAllen & Overy

1131991

Arkadiusz P´dzichManaging Partner

18

BSJP Brockhuis Schnell Jurczak Prusak Sp.k.Al. Armii Ludowej 26, 00-609 Warsaw22 579-8900/22 579-8901info@bsjp.plwww.bsjp.pl

3053

1016

42

2310

Real estateEnergy and environment; banking and finance;

life sciences and health careTaylor Wessing

752001

Christian SchnnellManaging Partner

19

K&L Gates Jamka Sp.k.Al. Jana Paw∏a II 25, 00-854 Warsaw22 653-4200/22 653-4250warsawoffice@hhlaw.comwww.hhlaw.com

2843

1117

11

39

Commercial and corporate lawWND

K&L Gates70

2010Maciej JamkaManaging Partner

Number of lawyers

JANUARY 16-22, 2012 THE LIST www.wbj.pl 21

Notes: NA = Not Applicable, WND = Would Not Disclose. Research for The List was conduct-ed in July/August 2011. Number of employees and ownership structure are as of July 2011. Allinformation pertains to the companies’ activities in Poland. Companies not responding to our sur-vey 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

Total number ofboard-certified

lawyers /Total number of

lawyers

Licensed advocates /

Licensed legaladvisors

Foreign /Tax advisors

Unlicensed lawyers(Master of Law

degree) /Training for license

Main specialization /Other specializations

Global affilationTotal employees /

Year founded

Top local executive /

Title

20

Chajec, Don-Siemion & ˚yto Sp.k.ul. Lwowska 19, 00-660 Warsaw22 492-4000/22 370-0708kancelaria@cdz.com.plwww.cdz.com.pl

2735

224

1-

17

Mergers and acquisitionsCapital markets; private equity; real estate

INTERLAW55

2003Andrzej Chajec

Managing Partner

20

Kancelaria Radców Prawnych i AdwokatówNowakowski i Wspólnicy Sp.k.Pl. Mickiewicza 18, 13-200 Dzia∏dowo23 697-2546/23 697-2546dzialdowo@knw.pl, www.knw.pl

27WND

423

-4

415

Transportation lawCommercial and corporate law; pharmaceutical law;

public orders-

WND1998

Cezary JózefNowakowski

Chief Partner

20

Miller, Canfield, W. Babicki, A. Che∏chowski i Wspólnicy Sp.k.ul. Nowogrodzka 11, 00-513 Warsaw22 447-4300/22 447-4301kontakt@pl.millercanfield.com, www.millercanfield.pl

2750

616

41

2311

Real estateTMT; commercial and corporate law; trial law

Miller, Canfield, Paddock andStone, P.L.C.; Employment Law

Alliance; The Force Alliance

661991

Wojciech BabickiManaging Partner

23

Chadbourne & Parke, Radzikowski, Szubielska i Wspólnicy Sp.k.ul. Emilii Plater 53, 00-113 Warsaw22 520-5000/22 520-5001warsaw@chadbourne.com, www.chadbourne.com

2633

521

-2

25

Mergers and acquisitions; restructuringEnergy law; tax law; banking and finance

Chadbourne & ParkeWND1990

W∏odzimierzRadzikowskiManaging Partner

24

D. Dobkowski Sp.k.ul. Ch∏odna 51, 00-867 Warsaw22 528-1300/22 528-1309legal@kpmg.pl, www.kpmg.pl/ddobkowski

2533

124

--

87

Commercial and corporate lawBanking and finance; real estate; mergers and

acquisitionsWND

451996

Dariusz DobkowskiManaging Partner

24

Âlàzak, Zapiór i Wspólnicy Kancelaria Adwokatów i Radców Prawnych Sp.k.Al. Korfantego 141, 40-154 Katowice32 783-8800/32 783-8899kontakt@kancelaria-szip.pl, www.kancelaria-szip.pl

2548

1015

--

815

Energy lawPublic orders; copyright law; intellectual and industrial

property law; local government lawConsortio Lex

562002

Krystian ÂlàzakManaging Partner

24

Kochaƒski Zi´ba Ràpa∏a i Partnerzy Sp.j.Pl. Pi∏sudskiego 1, 00-078 Warsaw22 326-9600/22 326-9601biuro@kochanski.pl, www.kochanski.pl

2445

108

13

516

Copyright law; intellectual and industrial property law;new technologies and e-commerce

Mergers and acquisitions; antimonopoly andcompetition law; litigation and arbitration

International Lawyers Network;Mackrell International Bar

Association; Polski ZwiàzekPracodawców Prawniczych

701998

Piotr KochaƒskiManaging Partner

24

LeÊnodorski, Âlusarek i Wspólnicy Sp.k.ul. ¸owicka 62, 02-531 Warsaw22 646-4210/22 646-2877kancelaria@lsw.com.pl, www.lsw.com.pl

2446

717

11

615

Mergers and acquisitionsReal estate; copyright law; intellectual and industrial

property law; tax lawWorld Link for Law

601998

Bogus∏aw LeÊnodorski;Maciej Âlusarek

Partners

28

Kancelaria Prawna J. Cha∏as i Wspólnicy Sp.k.ul. Sapie˝yƒska 10A, 00-215 Warsaw22 536-0050/22 536-0051chwp@chwp.pl, www.chwp.pl

2335

119

12

66

Commercial and corporate law; mergers and acquisitions

Public orders; copyright law; intellectual and industrialproperty law; labor law

Zumpano; Patricios and Winker74

1995Jaros∏aw Cha∏as;

Managing Partner

29

TGC Ordowska Kancelaria Prawnicza Sp.k.ul. Hrubieszowska 2, 01-209 Warsaw22 295-3300/22 295-3301tgc@tgc.eu, www.tgc.eu

2230

411

34

44

Commercial and corporate lawTrial law; labor law; real estate

ALFA International; SRA, LCIA48

1991

Nicholas Fielding;Beata Ordowska

Managing Partner; Partner

29

Tokarczuk, J´drzejczyk i Wspólnicy Kancelaria Prawna GLN Spk.Pl. Pi∏sudskiego 1, 00-078 Warsaw22 344-0000/22 344-0001gln.warsaw@gide.com, www.gide.com

2250

613

23

613

Mergers and acquisitionsBanking and finance; energy law; real estate

Gide Loyrette Nouel 80

1990Dariusz Tokarczuk

Managing Partner

31

Beiten Burkhardt P. Daszkowski Sp.k.ul. Mokotowska 49, 00-542 Warsaw22 583-7100/22 583-7109bblaw-warschau@bblaw.comwww.bblaw.com

2136

417

43

1515

Commercial and corporate lawReal estate; energy law; public orders

Beiten Burkhardt Rechtsanwalte 34

1999Peter Daszkowski

Unlimited Partner

31

CWW S. Cetera, M. W´grzyn-Wysocka i WspólnicyKancelaria Radców Prawnych i Adwokatów Sp.k.ul. W∏odkowica 10/11, 50-072 Wroc∏aw71 780-7600/71 780-7601kancelaria@cww.pl, www.cww.pl

2137

318

-3

412

Energy lawTrial law; real estate; mergers and acquisitions

WND43

1997

Sylwester Cetera,Ma∏gorzata W´grzyn-Wysocka; AgnieszkaKo∏aczkowska, ¸ukaszDziewoƒski, Maciej

Domaga∏aLimited Partners

31

GESSEL, KOZIOROWSKI Sp.k.ul. Sienna 39, 00-121 Warsaw22 318-6901/22 318-6931mail@gessel.pl, www.gessel.pl

2134

416

1-

129

Mergers and acquisitionsVenture capital and private equity; securities andcapital markets; commercial and corporate law

-55

1993

Beata Gessel-Kalinowska vel Kalisz

Managing Partner

34

Forystek & Partnerzy Adwokaci i Radcowie Prawniul. Armii Krajowej 16, 30-150 Kraków12 622-4511/12 622-4510kancelaria@forystek.plwww.forystek.pl

2032

137

-2

39

Real estateVenture capital and private equity; capital markets;

mergers and acquisitions; commercial and corporatelaw; litigation and arbitration

WND36

1997

Józef Forystek; Marek Forystek

Managing Partners

35

Kancelaria Prawna Piszcz, Norek i Wspólnicy Sp.k.ul. Towarowa 35, 61-896 Poznaƒ61 859-4444/61 859-4440kancelaria@piszcz.pl, www.piszcz.pl

1933

117

-1

311

Mergers and acquisitionsCommercial and corporate law; real estate;

energy lawLegal NetLink Alliance

331999

Marcin Piszcz; Hubert NorekManaging Partners

36

AVAL-CONSULT Kancelaria Radców Prawnych i Adwokatówul. Kartuska 5, 80-103 Gdaƒsk58 301-4349/58 346-2716biuro@avalconsult.pl, www.avalconsult.pl

1838

416

--

1010

WND -41

1989Halina Ostrowska

36

LTA Doradztwo Prawne Dopiera∏a, Oliwa i Wspólnicy Sp.k.ul. Ogrodowa 58 , 00-876 Warsaw22 621-5656/22 621-7377kancelaria@lta.pl, www.lta.pl

1821

44

-3

38

Trial lawCommercial and corporate law; copyright law;

intelectual and industrial property law; real estate-

262006

Filip Dopiera∏a; RobertOliwa; Cezary Kubacki;

Milada Czajkowska;Ma∏gorzata Gajewska

Partners

36

Siwek Gaczyƒski & Partners Sp.k.ul. Bonifraterska 17, 00-203 Warsaw22 246-0800/22 246-0801sgp@kancelaria.sgp.pl, www.kancelaria.sgp.pl

1825

711

-1

24

Commercial and corporate lawPublic orders; TMT; energy law

-29

1998Andrzej SiwekManaging Partner

39

Deloitte Legal, Pasternak i Wspólnicy KancelariaPrawnicza Sp.k.Al. Jana Paw∏a II 19, 00-854 Warsaw22 511-0811/22 511-0813dpoland@deloitteCE.com, www.deloitte.com/pl/kancelaria

1732

413

--

1515

Mergers and acquisitions; commercial and corporatelaw; real estate

Labor law; social insurance; antimonopoly andcompetition law; intelectual property law

Deloitte36

2007Robert Pasternak

Partner

39

Trusiewicz Siwko Kancelaria Prawna RadcówPrawnych Sp.p.ul. Domaniewska 50A, 02-672 Warsaw22 208-1300/22 208-1301sekretariat@ts-kancelaria.pl, www.ts-kancelaria.pl

1727

89

--

46

Real estatePublic orders; venture capital and private equity;

mergers and acquisitions-

332006

Rafa∏ Trusiewicz;Micha∏ SiwkoManaging Partners

Number of lawyers

JANUARY 16-22, 2012LIFESTYLE22 www.wbj.pl

Chris ReaFebruary 5PKiN, Sala KongresowaPlac Defilad 1Warsaw

In a career spanning more than30 years, gravel-voiced guitarmaestro Chris Rea hasachieved worldwide fame withnumerous hits, including “On

the Beach,” “Julia” and “TheRoad to Hell.” He has current-ly sold more than 30 millionalbums, with both 1989’s “TheRoad to Hell” and 1991’s“Auberge” topping the UKalbum charts. But since suffer-ing a life-threatening illness in2001, Chris Rea vowed toreturn to his blues roots. His

latest offering, “Santo SpritoBlues,” which reached 33 inthe Polish charts, is based onthese original blues traditions.Tickets for the event are pricedfrom z∏.176. ●

For more information log on tokongresowa.pl

Concert

The road to Rea

SH

UT

TE

RS

TO

CK

LambFebruary 7Klub Palladiumul. Z∏ota 9Warsaw

Formed in Manchester in themid 1990s, Lamb was part ofthe UK’s original trip-hopscene, which comprised otherseminal groups, including Por-

tishead and Massive Attack.The duo, consisting of produc-er Andy Barlow and singer-songwriter Lou Rhodes,released four studio albumsbefore separating in 2004.Since reforming in 2009, thegroup has recorded a newalbum, “5,” and toured theglobe. Fans can expect to hear

the group’s most famous songs,“Górecki” and “Gabriel,” aswell as tunes from their latestoffering, when they come toWarsaw this February. Ticketsfor the event are priced atz∏.120.

DIFor more information log on

to palladium.art.pl

Concert

Legendary trip-hop duo

“And the Rain Will Pass …”January 28, 29National TheaterPl. TeatralnyWarsaw

Named after a line taken fromthe poem “Rain” by KrzysztofKamil Baczyƒski, this ballet is

based around the theme ofwar, and more specifically theWarsaw Uprising. Choreo-graphed by Krzystof Pastorand accompanied by the musicof Henryk Miko∏aj Górecki,this ballet was previouslydescribed as “a reckoning with

the demons of Poland’s mostrecent history” and the “Godand fatherland vision of histor-ical politics,” by TygodnikPowszechny

DIFor more information log on

to teatrwielki.pl

Ballet

A dance through history

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“And the Rain Will Pass ...”

JANUARY 16-22, 2012 LAST WORD www.wbj.pl 23

The small-but-saucy gadgets of CES 2012

Tech Eye

Has Techeye ever mentioned thetime we almost froze to death on theroof of the local Sigma Tau Delta

sorority house? No? We wereattempting an unprece-

dented mid-win-ter abseil-ing perv, you see.Equipped with asackful of climbing equip-ment and a trench coat, we hadsuccessfully scaled the icy building’streacherous north face when sud-denly a …

Wait … what are we doing?Wasting words, that’swhat. The 2012 Con-sumer Electronics Showended last week, yes, butthere’s plenty to writeabout. Indeed, CES intro-duced such a cerebrum-discombobulating varietyof new gadgets that wecould probably fill severalrolls of toilet paper withnews of mobile phones alone.Not that we’d do that, ofcourse – it tends to confuseWBJ’s scarcely continent copy-editing monkeys.

Anyway, the chances are

that you’ll read about the biggestreveals on CNN,

Engadgetor oneof those other“respectable” news sites.

T h a t ’ swhy Techeye is focusing on some ofthe small-but-saucy gadgets unveiledat CES.

That certainlycharacterizes eye-w e a r - m a k e rVuzix’s SmartG l a s s e s( v u z i x . c o m ) .Think of theseas a personalheads-up dis-play, incorpo-rating “inputand outputh o l o g r a mstructures”on the lenss u r f a c e ,

a n dthereby

adding vir-tual infor-mation tothe every-day world.Augment-ed reality,in otherwords.

Don’t ex-pect to see youryuppy neighborwearing Smart Glasses any timesoon though. Vuzix isn’t talking priceyet, the release date is “fall 2012”and the firm is targeting the com-mercial and industrial sectors tostart. Still, consumer sales will followsoon enough, and then we’ll finallyrealize the dream – visions of syn-chronized belly dancers, wholesquadrons of them gyrating knee-deep in velvety béarnaise sauce,superimposed over the banalities ofeveryday life …

Oops, Techeye got a bit lost in ourhappy place there. Sorry about that.

Another item which deserves a bitof press is the SolarKindle, a solar-charged lighted cover from SolarFo-cus (solarmio.com). Ok, “deserves” isa stretch. The SolarKindle is onlyuseful for people who own a Kindle

(like Techeye) and whose Kindle is theright size (unlike Techeye). Also, thesolar panel may not last long in yourgym bag / brief case / sporran, andhaving to leave your e-reader indirect sunlight for hours on endseems like an iffy prospect.

But whatever. The SolarKindlecan charge your Kindle and it givesyou the means to read without dis-turbing others. You can get onetoday, provided you’ve got $80 anda lust for (solar-powered) light.

Then there’s the FoxLo, “theworld’s first palm-sized hi-fi sub-woofer,” from Soundmatters(soundmatters.com). Developed bya former NASA scientist who pre-sumably loves him some low end,the FoxLo hits the market thisspring at $149.

And finally, take a gander at theiShower water-resistant showerspeaker, brought to you by thegood people at iDevices Consult-

ing. The iShoweris a Bluetooth-enabled devicewhich playsmusic directlyfrom Apple gear(iPhones, iPodset al.) or Andro-

id devices. ThreeAAA batteries gets you 15 hours ofplayback, and there’s even anoptional anti-fog shower mirror.

A word of advice: don’t dropthe iShower in the shower(whether you’re in prison or not).It’s kind of like dropping the soap,except it costs upwards of $99.99 toreplace. ●

Ever dreamed of a reality drizzled with belly dancers and béarnaise sauce? Let us know: techeye.wbj@gmail.com

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

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

Centre forContemporary Art atUjazdowski Castle ul. Jazdów 2www.csw.art.pl

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

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

Galeria 65 ul. Bema 65www.galeria65.com

Galeria Appendix 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

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

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

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

Museum ofIndependenceAleja SolidarnoÊci 62www.muzeumniepodleglosci.art.pl

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

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

Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl

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

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

Simonis Galleryul. Burakowska 9www.simonisgallery.com

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

State EthnographicMuseumul. Kredytowa 1www.ethnomuseum.website.pl

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

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

Warsaw Philharmonic ul. Jasna 5www.filharmonia.pl

Warsaw RisingMuseum ul. Grzybowska 79www.1944.pl

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

Zachęta National ArtGalleryPl. Ma∏achowskiego 3www.zacheta.art.pl

Museums, galleries and venues in Warsaw

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COURTESY OF SOUNDMATTERS

COURTESY OF SOLARFOCUS