Current issue:
ABOUT BUSINESS - 03.2009
The euro, when?
If it turns out that entering the euro zone is associated with risk to Poland’s currency or financial system, the date for adopting the euro may be delayed, said prime minister Donald Tusk during a television interview not so long ago. It is not an issue of the exchange rate, but of market instability. The Polish government intends to adopt the euro on the 1st of January, 2012, emphasized the Polish prime minister.
Poles are in favour
In the meantime, according to opinion surveys, 52% of Polish citizens accept the introduction of the euro. The largest number of adherents is found among those with university degrees (72%). Those who identify themselves with liberal and leftist parties – the Civic Platform, the Social Democrats and the Polish Peasants” Party – are most inclined to bid farewell to the Polish zloty. Nearly half of those who voted for the right-wing/national party, Law and Justice, are against the euro.
Improvement of mood
In industry, there is a discernable improvement in mood. In January, the index that provides information about company forecasts in terms of new orders in Polish industry, among other things, increased from 38.3 to 40.3 points. According to Markit Economics, which publishes this type of data every month, this is the first time it has happened in eleven months.
EU projects unchanged
Ministries are not going to cut spending on expenditures connected with realizing projects accepted by the European Union. These expenditures have not been eliminated anywhere, as the Polish minister of regional development assures us. The prime minister ordered his ministers to prepare savings plans. They affect 10% of expenditures planned for the first six months of 2009, and amounted to nearly 20 billion zloty.
Polish rail lines in German
The German transport company Deutsche Bahn Schenker has bought PCC Rail, the largest private railway carrier in Poland. The price of the transaction was not revealed, but it is believed that it may have been worth as much as a billion zloty. PCC is the largest freight competitor to the state-owned PKP Cargo. Competition is quite likely, because Deutsche Bahn has ruled out involvement in the privatization planned by the Polish government for PKP Cargo, which is presently having financial problems and is going through a difficult reorganization process.
New shopping centers
Two big, new shopping/service/entertainment centers will be built in Elbląg and in Wałbrzych by foreign investors. The Danish developer Sjaelso will build the Porto 55 center, which will have a total area of 48,000 square meters. The shopping center will have four levels, three of which will be above ground. Sjaelso is also getting ready to build two office complexes in the Mokotów district of Warsaw. As well, in Wałbrzych, Galeria Victoria will be built by Keen Property Partners Retail. Victoria will be the first modern shopping and entertainment complex in this town and the surrounding region. The total area of the center will amount to 43,000 square meters. It is expected to open in 2010. 40% of the space in Victoria has already been rented out.
It won’t be that bad?
There will not be a recession in Poland, in spite of the economic slowdown – that is what experts at Instytut Badań nad Gospodarka Rynkową (The Gdańsk Institute for Market Economics). They are predicting in their report that this year Poland’s GDP will increase by 2%, and in 2010, by 3%.
Government subsidies for cars?
The Polish government is planning to pay financial bonuses to those who decide to trade in their old cars for new ones. This system of premiums, which other countries have already introduced, is intended to make the fleet of cars „younger” and support sales of cars in Poland. At present, it is not known how much money may come into play. The ministries of the environment and economy are preparing changes to the law, accordingly. Introducing an incentive system like this will certainly stimulate sales of new cars. However, it will depend on the amount of savings, which ought to be attractive and amounting to thousands of zloty.
An agreement with Qatar
In the first ten days of April an agreement with the government of Qatar, which would allow that country to take part in the privatization of the Stock Market (GPW), among other things, possible, said the Polish minister of the treasury during the last economic summit in Davos, Switzerland. The Polish side wants the text of the agreement to be ready before the emir of the country visits Poland in the first ten days of April. At the same time, the Polish government decided that the Warsaw Stock Exchange (GPW) will be privatized for a strategic industry investor. It is known that others are also interested in shares of the Warsaw Stock Exchange.
More and more telephones
The number of mobile telephone subscribers in Poland exceeded 44 million at the end of 2008, which means an increase by 6.1% in relation to 2007, when the number amounted to 41.5 million. This information comes from the Polish Central Statistical Office (GUS).
If it turns out that entering the euro zone is associated with risk to Poland’s currency or financial system, the date for adopting the euro may be delayed, said prime minister Donald Tusk during a television interview not so long ago. It is not an issue of the exchange rate, but of market instability. The Polish government intends to adopt the euro on the 1st of January, 2012, emphasized the Polish prime minister.
Poles are in favour
In the meantime, according to opinion surveys, 52% of Polish citizens accept the introduction of the euro. The largest number of adherents is found among those with university degrees (72%). Those who identify themselves with liberal and leftist parties – the Civic Platform, the Social Democrats and the Polish Peasants” Party – are most inclined to bid farewell to the Polish zloty. Nearly half of those who voted for the right-wing/national party, Law and Justice, are against the euro.
Improvement of mood
In industry, there is a discernable improvement in mood. In January, the index that provides information about company forecasts in terms of new orders in Polish industry, among other things, increased from 38.3 to 40.3 points. According to Markit Economics, which publishes this type of data every month, this is the first time it has happened in eleven months.
EU projects unchanged
Ministries are not going to cut spending on expenditures connected with realizing projects accepted by the European Union. These expenditures have not been eliminated anywhere, as the Polish minister of regional development assures us. The prime minister ordered his ministers to prepare savings plans. They affect 10% of expenditures planned for the first six months of 2009, and amounted to nearly 20 billion zloty.
Polish rail lines in German
The German transport company Deutsche Bahn Schenker has bought PCC Rail, the largest private railway carrier in Poland. The price of the transaction was not revealed, but it is believed that it may have been worth as much as a billion zloty. PCC is the largest freight competitor to the state-owned PKP Cargo. Competition is quite likely, because Deutsche Bahn has ruled out involvement in the privatization planned by the Polish government for PKP Cargo, which is presently having financial problems and is going through a difficult reorganization process.
New shopping centers
Two big, new shopping/service/entertainment centers will be built in Elbląg and in Wałbrzych by foreign investors. The Danish developer Sjaelso will build the Porto 55 center, which will have a total area of 48,000 square meters. The shopping center will have four levels, three of which will be above ground. Sjaelso is also getting ready to build two office complexes in the Mokotów district of Warsaw. As well, in Wałbrzych, Galeria Victoria will be built by Keen Property Partners Retail. Victoria will be the first modern shopping and entertainment complex in this town and the surrounding region. The total area of the center will amount to 43,000 square meters. It is expected to open in 2010. 40% of the space in Victoria has already been rented out.
It won’t be that bad?
There will not be a recession in Poland, in spite of the economic slowdown – that is what experts at Instytut Badań nad Gospodarka Rynkową (The Gdańsk Institute for Market Economics). They are predicting in their report that this year Poland’s GDP will increase by 2%, and in 2010, by 3%.
Government subsidies for cars?
The Polish government is planning to pay financial bonuses to those who decide to trade in their old cars for new ones. This system of premiums, which other countries have already introduced, is intended to make the fleet of cars „younger” and support sales of cars in Poland. At present, it is not known how much money may come into play. The ministries of the environment and economy are preparing changes to the law, accordingly. Introducing an incentive system like this will certainly stimulate sales of new cars. However, it will depend on the amount of savings, which ought to be attractive and amounting to thousands of zloty.
An agreement with Qatar
In the first ten days of April an agreement with the government of Qatar, which would allow that country to take part in the privatization of the Stock Market (GPW), among other things, possible, said the Polish minister of the treasury during the last economic summit in Davos, Switzerland. The Polish side wants the text of the agreement to be ready before the emir of the country visits Poland in the first ten days of April. At the same time, the Polish government decided that the Warsaw Stock Exchange (GPW) will be privatized for a strategic industry investor. It is known that others are also interested in shares of the Warsaw Stock Exchange.
More and more telephones
The number of mobile telephone subscribers in Poland exceeded 44 million at the end of 2008, which means an increase by 6.1% in relation to 2007, when the number amounted to 41.5 million. This information comes from the Polish Central Statistical Office (GUS).
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Information published at 1 March 2009