The third day of the 4th European Economic Congress began with a debate on the crisis of liberalism, which gathered together the representatives of different political factions. The debate was attended by Michał Kamiński, Member of the European Parliament; Krzysztof Kwiatkowski, Member of the Polish Parliament; Józef Oleksy, Poland’s Prime Minister, 1995-1996, and Janusz Palikot, Member of the Polish Parliament.

Wednesday was also when a debate on new fiscal regulations in EU was held as part of the European Economic Congress (The Fiscal Pact), as were those on the impact of the increased financial discipline in the member states on stability and new prospects for economic growth. Members of the discussion panel called “EU budget and fiscal policy” were sceptical for different reasons towards the idea of harmonizing tax levels across the EU.

“In Hungary we are not quite behind this idea” – said Zoltán Cséfalvay, Hungarian Deputy Minister of Economy. “We want to be competitive, for example as far as attracting foreign investment is concerned, but a tax system is an instrument of economic policy”.

“There is, however, an area of unification relating to the foundations of the tax system for business and identifying, for example, what can or cannot constitute a tax relief. The key issue is what each of the member states offers for the taxes it collects. It is enough to compare the condition of the transport infrastructure in Germany and Poland and then look into how attractive things are for investors” – noted Dariusz Rosati, Member of the Polish Parliament, Poland’s Foreign Minister, 1996-1997.

The last day of the 4th European Economic Congress was abundant in sessions devoted to the Euro 2012 championships, nuclear power and energy efficiency, the new media, new technologies, metallurgy and heat engineering. One of the hotly debated issues was whether Poland will benefit from the organization of Euro 2012. Cezary Gizka, Member of the Supervisory Board of the National Chamber of Sport and Antoni Piechniczek, Deputy President for Training of the Polish Football Association were among the speakers.

Kamil Durczok, Chief Editor of Fakty TVN, provided a summary of the changes on the media market, David J. Rintoul, Deputy Chairman for European Operations, Chairman of U.S. Steel Košice, Slovakia and Surojit Ghosh, Director of Commercial and Corporate Affairs, Member of the Management Board in ArcelorMittal Poland, CFO of FCE Business Division East were among the speakers in the debate on metallurgy, and Peter Böhret, Vice-president of European Data Recovery at Kroll Ontrack was among those discussing the security of online trading.

Over 40 topical sessions took place on the last day of the Congress; they were attended by almost 350 speakers. The fourth season of this largest business event in Central Europe revealed the need to discuss the issues which are important to the Polish and European economy. These essential problems were tackled by the Congress guests from the spheres of science, business and politics.

The opening session of the European Economic Congress, held on the 14th of May, was attended by Bronisław Komorowski, President of Poland; Waldemar Pawlak, Deputy Prime Minister of Economy; Janusz Lewandowski, EU Commissioner for Financial Programming and Budget; Barbara Kudrycka, Minister of Science and Higher Education and Jerzy Buzek, Chairman of the European Parliament 2009-2012, Mikuláš Dzurinda, Prime Minister of Slovakia, 1998-2006, Slovakia’s Foreign Minister 2010-2012; Joschka Fischer, Vice-Chancellor of Germany 1998-2005, Foreign Minister of Germany 1998-2005 and Aleksander Kwaśniewski, President of Poland 1995-2005.

The Inauguration Ceremony was documented by a group of illustrators, students of Katowice Academy of Arts, Faculty of Graphic Design. They are members of the KILO Academic Circle of Graphic Designers. The Congress debates were also accompanied by various art installations in Katowice’s urban spaces, presenting the use of EU funds in the city.

The European Economic Congress 2012 took place between the 14th and 16th of May in Katowice.

source: press office of EEC

Seven bidders were competing for the contract. The offer of the Kraków based building company amounted gross PLN 7,16 million and was recognized as the best. The undertaking is being carried out by Optirem which owns three post-industrial properties designed for the Park. The building will be adapted to perform a new function of office, laboratories and conference spaces dedicated to building companies, architectural studios, engineers and all subjects involved in innovation and technology matters concerning revitalization and remediation activities.

“We just have signed the contract with Chemobudowa-Kraków and the company is now preparing the new design of the buildings. Then, necessary administrative permission have to be obtained. We will be able to start the works in the turn of the second and third quarter of 2012” – said Anna Rozmus-Żylińska, project manager of Revita Park.

The revitalization works are to be concluded in the second half of 2013 and then Optirem will have to provide the buildings with furnitures and the laboratories with necessary equipment. An official opening of Revita Park is planned for the end of the first quarter of 2014. A total cost of the project reaches almost PLN 26 million.

See visualizations of Revita Park >>>

Almost 10 topical sessions of the second day of the Congress were devoted to financial issues. The panellists discussed EU funds, local government finances, pension funds and the EU banking sector. The debates were attended by Elżbieta Chojna-Duch, Member of the Monetary Policy Council, Undersecretary of State in the Ministry of Finance, 1994-1995 and 2007-2009; Danuta Hübner, Member of the European Parliament, Chairwoman of the Committee on Regional Development in the European Parliament; Kim Kreilgaard, Head of Division for Lending Operations in Poland, European Investment Bank; Georg Milbradt, Prime Minister of Saxony 2002-2008, Germany; Elżbieta Suchocka-Roguska, Secretary of State in the Ministry of Finance, 2004-2010 and Advisor to the President of the National Bank of Poland, and Joachim Zeller, Member of the European Parliament and Member of the Committee for Regional Development from Germany.

– Let’s not pretend that Europe does not have years of weak growth ahead of it. The economic forecasts tell us that we are right in the middle of stagnation, and so the correct balance must be kept between fiscal charges and budget expenditure. It is without a doubt that a consolidation of individual budgets of the member states and the EU itself will progress – said Danuta Hübner, Member of the European Parliament, Chairwoman of the Committee on Regional Development in the European Parliament.

– GDP growth in 2012 might be above 3 percent. Inflation at the turn of 2012 and 2013 will be lowered down to the level of the inflation target, and the monetary policy should soon enter the period of “wait and see” (…). Inflation should slow down in the coming months, but it could be higher in June, temporarily and in some locations, such as the cities where Euro 2012 is held. We do hope that this situation will not spread to the rest of the country, and inflation should not be higher than 4 percent. I hope that at the turn of this year, inflation will be lower again, around the level of the inflation target, was the evaluation offered by Elżbieta Chojna-Duch from the Monetary Policy Council.

Among the debates dedicated to the energy sector there was a discussion on the Energy Roadmap 2050 and the Future European Energy Mix. The positions of the member states towards the reduction thresholds for CO2 emission were presented by Jerzy Buzek, Member of the European Parliament, 2009-2012, Prime Minister, 1997-2001; Ivo Hlaváč, Deputy Minister, Director of the Environmental Protection Directorate in the Czech Ministry of Environment; Beata Jaczewska, Undersecretary of State in the Ministry of Environment; Arvydas Sekmokas, Lithuanian Minister of Energy and Günter Verheugen, European Commissioner for Enterprise and Industry 2004-2010 and European Commissioner for Enlargement 1999-2004. The discussions extended into the topics of the future of European energy, common European infrastructural projects in the spheres of gas, energy and liquid fuel transfers, investments in the Polish energy generation industry and railway transport and the Polish air transport market.

– It is not a secret that there is hardly a queue for the privatization of LOT - admitted Rafał Baniak, Deputy Minister of the State Treasury – but there are a few interested parties. We are talking to them and so far by the end of this year we wish to change the LOT stock ownership composition. (…) We want to fly further, and we are thinking about Tokyo and Chinese cities other than Bejing. There is no business without mobility, and the lack of connections with China is a barrier for further development of Polish-Chinese economic cooperation.

The Polish-Czech Economic Forum took place yet again during the European Economic Congress, as did the award ceremony of Golden Certificates of Reliability.

The second day of the Congress panels took place in the Silesian Theater, the Monopol Hotel, Offices of the Silesian Province Authorities, the Biuro Centrum building, Hotel Angelo, Novotel Katowice Centrum, Goldstein Palace and the Auditorium of Bank Śląski ING.

source: press office of EEC

Out of the 31, sixteen architectural firms decided to prepare and submit projects. Now the competition jury will have time to mark the ideas and choose the best one. The winning studio is scheduled to be announced in the middle of June this year.

The successful tenderer will be awarded a single-source contract worth PLN 1,6 million and will prepare a complete design documentation including all administrative decisions and permissions. The architectural design and its investment cost estimate can not exceed PLN 40 million including Value Added Tax.

Works on the new public spaces of the Market Sq. will be conducted within the next stage of the City Center redevelopment.

Works on a new tram line’s route - part of the first stage of the City Center’s redevelopment - were commenced in the beginning of March and are being conducted by the consortium of NDI and Balzola.

4th European Economic Congress, L to R: Jerzy Buzek, former President of the European Parliament; Barbara Kudrycka, Minister of Science and Higher Education; Janusz Lewandowski, European Commissioner responsible for the budget

The biggest business event in Central and Eastern Europe was opened by Bronisław Komorowski, President of Poland. The opening speaches were also given by Jerzy Buzek – former President of the European Parliament, Janusz Lewandowski – European Commissioner responsible for the budget, Poland’s Deputy Prime Minister and Economy Minister – Waldemar Pawlak and Barbara Kudrycka – Minister of Science and Higher Education.

Chosen quatations* of the inauguration ceremony’s speakers:

Bronisław Komorowski: “Europe has no time for mistakes or living in illusion; without economic growth it will decline. There is enough wealth in Europe for years to come, but the fact remains that the world will have new growth poles (…). Meantime, it is unfortunate that the agenda of Europe’s growth consists only of slogans instead of detailed solutions, and I very much hope that the European Economic Congress will find those. The improvement of the competitiveness of the Polish and European economy is the way to prosperity and a condition of the success of the entire European project. Europe must maintain its competitiveness, while preserving its openness towards the world economy. Economic competitiveness is also the foundation of a robust state, strong with the strength of its citizens.

Waldemar Pawlak: “The Euro zone was a dream of a uniform, risk-free region but today it is time to consider if it would not be better to return to an accounting currency based on a basket of European national currencies. This concept is grounded in the palette of world finance. Poland’s success is to a certain extent a result of the fact that our currency has absorbed the impact of the crisis. The weak zloty meant that our goods were exported and jobs stayed in the country.

Janusz Lewandowski: “Today, countries are beginning to take their positions. Let’s hope that the negotiations on the future will begin in May. For the past 50 years the EU has grown but 2013 will be a turning point. In 2013, the number of European bureaucrats will be gradually reduced. Today, we also have a new type of justification for European spending; this is investment expenditure and the European budget per se is very much investment-oriented. One must not look for Europe’s incentive for development by increasing its debt, and wherever there is no talk of debt, the resources must be invested. In Poland 52% of non-private investments are co-financed from the EU budget. Without this EU assistance our investment landscape would practically stand still. Poland deserves to be branded as a country which intends to develop, build and renovate itself.

Barbara Kudrycka: “We are living through a period of a huge transformation of Polish science. This is why in 2010 we already reached the EU average for public spending as far as research and development are concerned. For 2011, we may even exceed these figures. We have already contracted to receive 18 billion 600 million zloty from certain programmes for new investments into research and development, including resources to be spent on research laboratories. We are investing, above all, in research in technical sciences, with 7 billion zloty at our disposal. We are spending more money on libraries and high-power computers. We have noted a considerable improvement in the quality of research owing to all these measures (…). During our presidency, we have worked out how to take advantage of various sources of financing through similar procedures. Such similarities in using various sources of support will enable us to use the resources available to us in a more efficient way. Creating a culture of innovative entrepreneurship through an improved cooperation of academic centers with business is also very important to us.

Jerzy Buzek: “Today, we are trying to answer the question of how to overcome the most serious difficulties that Europe is confronted with in the time of crisis. This year’s Congress is facing a great task: we need to ask ourselves how and in what way we can translate Poland’s success of the past 20 years – its development and economic reforms – into a larger picture? How can we counteract Europe’s problems? How should the EU budget for 2012-2020 be constructed and introduced?”

The European Economic Congress is considered to be a forum for one of the most representative debates about the future of Europe; the theses presented by some of the most distinguished guests to the Congress are frequently quoted and widely discussed.

Since the first edition in 2009, the organizer of the EEC is PTWP SA, a publisher of “Miesięcznik Gospodarczy Nowy Przemysł” (New Industry Economic Monthly) and the wnp.pl internet portal.

* The quatiations were prepared by the press office of EEC.

The “Business services sector in Katowice and the Silesia Metropolis” report prepared by ABSL

According to the 2009-2011 data, the Silesia Metropolis was the third fastest developing center of service offshoring in Poland (after Wrocław and Łódź). More than 35 service centers, 7 500 employees and expecting growth to the number of 9 thousand by the end of 2012 – these are the key numbers of the “Business services sector in Katowice and the Silesia Metropolis” report presented during the conference on 11th of May organized by the City Hall of Katowice. The meeting was attended by sector leaders and advisors – IBM, Capgemini, Ernst&Young, Jones Lang LaSalle, Hays and Manpower.

Katowice is one of the seven main metropolis in Poland being the most frequently chosen by foreign investors of the business services sector. During the recent years, the City has been more and more effectively attracting the offshoring business services – shared service centers (SSC), business process outsourcing (BPO/ITO) and research and development (R&D) units. Only two companies – Grupa Żywiec (customer service center) and Ruch (financial and accounting services center) – hired more than 500 people in the last twelve months. “The region of the Upper Silesia had been perceived as the center of heavy industry. As the result of dynamic economic changes, I am gladly presenting the report on the business services sector in Katowice and the Silesia Metropolis. This new branch of investments has been strongly developing in the City over the recent years” – said Piotr Uszok, Mayor of Katowice.

In the territory of Katowice and the Silesia Metropolis, there were 36 service centers in operation with a 7 500 headcount at the end of 2011, which stands for 3% of total employment in foreign service centers in Central and Eastern Europe (2011). Since 2009, 2 700 new jobs (i.e. over 1/3rd of the current headcount) have been established in this sector. Out of service centers currently operating, 17 are shared service centers (SSC), 13 are outsourcing service centers (BPO/ITO) and 6 are research and development centers (R&D). It is worth to mention that 30 out of 36 centers are entities of foreign capital hiring over 90% of the total workforce in the sector.

According to the researchers of ABSL, the Silesia Metropolis’ business services sector grows faster than e.g. Kraków and Poznań. Only Wrocław and Łódź keep better scores. The strong position is mostly contributed by Katowice where absolute majority of centers in the Silesia Metropolis (24 out of 36) are located in the City, gathering 2/3rd of the whole employment in the sector in this area. However, Katowice based companies use a workforce that lives across the whole agglomeration what shows high mobility of the inhabitants of the Silesia Metropolis, very close relationships between the cities and a well-developed roads system and public transportation. For example, out of 1 300 employees of two Capgemini’s office located in Katowice, only 20% are residents of the City.

As can be read in the report, it is assumed in the plans of the existing centers that by the end of 2012, 9 000 people (a 1/5th growth in comparison to the numbers at the end of 2011) will be employed in the Silesia Metropolis. This value does not take into account new jobs in centers that have not yet announced the commencement of their business. Thus, it may be expected that it will be higher. The share of the Upper Silesia agglomeration in overall headcount in service centers in Poland reached a level of 8,1% in 2011.

Companies from seven countries invested in service centers in Katowice and the Silesia Metropolis. Two thirds of centers is owned by enterprises from the European Union (e.g., France – 2,7 employees, United Kingdom – 1,8 employees). American companies invested in over 1/4 of the total centers performing business operations in the area – 16% of employees in the sector. Almost half of the headcount in the US centers in the Silesia Metropolis is generated by two major investors from the US – Rockwell Automation (540 employees in several departments) and Mentor Graphics (200 in R&D unit). “It is very important for Katowice to attract investors of the outsourcing sector, especially those from the United States as they are mostly recognized as leaders of the branch. This is a very exacting customer. However, winning American investors can have an impact on decisions of companies from other countries. That is why, I concern the participation of Katowice in World BPO/ITO Forum in New York in June as a good move” – says Paweł Panczyj, advisor of Ernst&Young and ABSL.

According to analysts of ABSL, Katowice will still attract new business services investments and the Metropolis has necessary assets to develop in this branch.

Read a full version of the report >>>

The first building of 4 Towers under construction and the "Tysiąclecia" housing estate

This residential development is situated between Chorzowska and Henryka Brodatego streets in the area of the “Tysiąclecia” housing estate. The construction works were commenced in September last year. One hundred apartments of the “A” tower will be delivered by December 2013. “We have already sold 45 apartments by now. Gross prices vary from PLN 4 168 to 5 000 per one square meter” – says Joanna Bożek, marketing specialist at Activ Investment – a developer of 4 Towers.

The building consists of a three-storey base where an underground car park, retail and service units are to be located. The first stage (the “A” tower) will provide 1 260 sq. meters for such commercial activities. The housing part covers the floors from third to fifteenth. The Activ Investment’s offer includes apartments of the areas from 25 to 85 sq. meters. Each of the premises will have a balcony or a patio.

It is the second investment of the company in the area of the “Tysiąclecia” housing estate. Previously, the developer delivered over 200 apartments in two 12-floor buildings on Bolesława Krzywoustego St.

The pillar number two, raised just behind the first one, is also reconstructed already. However, the scaffolding still covers the “umbrella” and holds the formworks. Following two pillars’ caps are being prepared to be poured by concrete. Each of the pillars is a stand-alone construction which is not supported by ceilings and any additional walls or bearings.

Meanwhile, brick-wall and installation works are underway throughout the whole Neinver’s complex at Szewczyka Sq. First finishing works are in progress as well as a steel structure of skylights of the Station’s main hall.

See also archival photos of the former cup-shaped pillars and a video showing reconstruction works on the first pillar >>>

On Tuesday, 8th of May, a new store of Pepe Jeans was opened. The denim and casual wear jeans firm was established in London in 1973. It is the first store of the brand in Katowice. However, the Pepe Jeans’ clothes were previously available in Katowice in chain stores (i.e. Van Graaf).

The store of Rage Age by Czapul will cover 58 sq. meters. The brand is created by Rafał Czapul, a former Vistual’s head designer, and offers high fashion man’s clothes. Rage Age is present only in twelve location across the world, i.e. London, Milan, Tokyo and Warsaw.

The list of new tenants includes also Bonita – a German clothing brand, Feel The Chill – offering frozen yoghurts and coffee, HOS&me – a multibrand store of luxury jewelry.

Oracle offers an optimized and fully integrated stack of business hardware and software systems for firms and organizations of different size. The company operates in more than 145 countries around the globe. It will be the second office of Oracle in Poland after Warsaw. “This is our new undertaking and we can not disclose any further details at the moment. We will provide more information about the project in the weeks to come” - says Katarzyna Pilarska, PR Manager of Oracle Poland.

“Oracle’s presence at Francuska Office Center confirms the highest quality of our investment. It was planned and adjusted to the needs of international corporations from IT and new technologies sectors among others. Flexible arrangement of office space, large floors area and proper data communication solutions are only selected features of Francuska Office Center that attract firms like Oracle” – says Jacek Wachowicz, Member of the Management Boards and Director of Lease and Sales at GTC S.A.

Francuska Office Center comprises two buildings with a total of 21 700 sq. meters class A office space. They are over 60% let. The list of tenants includes also: Ruch, Bank Millennium, Nordea Bank, KPMG, Philips Lighting, American Heart of Poland, Arpid and Berlitz.