Drinking in Poland

End for Vodka?

The value of the Polish ‘coloured’ alcohol market is estimated to be PLN 5 billion, which constitutes 30% of the whole spirits market. At the moment, flavoured vodka rules in Poland and the sale of whiskey is rapidly growing. According to Leszek Wiwały, president of the Polish Spirits Industry (Polski Przemysł Spirytusowy), the whiskey market in Poland was valued at PLN 1.4 billion last year. Brandy, gin and rum are also becoming popular however whiskey remains the leader in this category. Last year the Scottish whiskey market grew by more than 20%. The reason for such growing interest is down to the changing tastes and habits of Polish customers and there is therefore great potential for future growth here. When it comes to whiskey, the most popular types are the mid-priced whiskies, single malts and American brands. For example, Ballantine’s has become one of Poland’s favourite brands recently. “Despite the difficult economic situation, last year was actually very good and successful for the alcohol market. Additionally, some segments, like the whiskey market, experienced spectacular growth. However, there is no doubt that customers will look to save in these times of crisis and this may affect the sale of alcohol,” Wiwała adds. Top-shelf, luxury products, even though they still constitute a small part of the spirits market in Poland, are an extremely promising segment. Polish customers are travelling more than ever before and are currently more willing to buy new brands, which they later look for on returning to Poland. As a result, Polish people have become more open to new types of imported spirits.
Interia.pl

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Polish Migration

Sad Face of Migration

Poles do not want to live in cities any longer and people are making their escape. The newest report on the makeup of Poland’s population in 2012 by the Central Statistical Office (GUS) has just been released. Poland’s current population is 38.5 million and about 15.2 million live in the countryside, while around 23.3 million live in cities. Last year, 244,000 people moved to the countryside, which is 35,300 more than people who moved in the opposite direction. This data does not only apply to Warsaw as, according to official data, 6,368 people moved to the capital last year. Cities, however, have nothing to worry about with regards to depopulation as the majority of citizens who decided to abandon crowded urban areas are actually moving to suburbia and other areas around cities. Polish people are migrating mainly due to economic reasons. The high level of unemployment (13.4% at the end of 2012) is even higher in the eastern regions of Poland (for example, 21.2% in Warmia and Mazury). People are therefore looking for job opportunities in other parts of the country. However, many Poles continue to move abroad with Germany, Great Britain, Italy, Ireland and the Netherlands being the most popular destinations. The vast majority of Poles leave in search of a better salary, although some claim that that it is for family reasons, while others wish to study abroad. In 2012, the population of Poland fell by approximately 5,000 people when compared with the previous year. This means that 1 in every 100,000 citizens has left the country. However, it is thanks to migration abroad that Poland has not been so badly hit by the global economic crisis. In the years 2004-2010, Polish emigrants sent more than EUR 30 billion back to Poland. Interestingly, over exactly the same period, Poland received EUR 16.5 billion in EU subsidies.
Wp.pl

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Polish Satisfaction Guaranteed

Glass Half Full?

Despite the crisis, the level of happiness in Poland remains high. It sounds strange but an incredible 37% of Poles declare that they feel fulfilled, content and happy. Since 1988, when a similar study was conducted for the first time, the level of Polish optimism has not been higher. Poles are in high spirits as opposed to everyone and everything around them. Unemployment may exceed 15% by the end of 2013 and will be at its highest level for years. There is no chance of any increase in salaries. What is more, most are seeing their wages slashed. The only rises which Polish people can expect are in the shops and stores as prices are continually on the increase. The state budget is in such a poor condition that the government is trying to find money in the pockets of the average Jan Kowalski. Tax offices are overzealously checking not only large companies, but also ordinary people. Problems with health services are not out of the ordinary. Therefore, on paper the average Kowalski should be depressed. However, the opposite is true. “Complaining is no longer trendy. Being happy is. The whole world is OK now and Poles want to be a part of this,” said Jacek Santorski, a business psychologist. The market research institution CBOS found that almost two-fifths of Poles (the aforementioned 37%) claim to be happy and feel fulfilled in their lives. There are three times fewer people who state that their life is tainted with bad luck (12%). Compared with 1988, the number of people who consider themselves happy has doubled. The reasons for this happiness seem to be quite trivial. There is almost universal (92%) satisfaction with children, while the vast majority of spouses (82%) are happy with their relationships. The majority of people who feel positive about their marriage are people between the ages of 25 and 34. For 77% of Poles, the source of the most satisfaction in life are relationships with friends and colleagues. Almost eight out of ten respondents (78%) are satisfied with where they live, and would not like to move. 59% of Poles are happy with their health, despite popular opinion.
Interia.pl

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Ryanair Attacks Polish Airports

Warsaw Chopin Airport

Ryanair has submitted a complaint against “Polish Airports” State Enterprise (PPL) to the European Commission and the Office of Competition and Consumer Protection (UOKiK), accusing it of making an attempt to impose discriminatory trading conditions for the company at Warsaw. Currently, Ryanair is obliged to make payments for airport services in advance, while LOT Polish Airlines have PPL’s permission to pay with significant delays. Ryanair claims that the purpose of this discrimination is to support the state carrier. Juliusz Komorek, the director of Legal and Regulatory Affairs at Ryanair, says that the airline has always fulfilled its financial obligations to the airport on time and stated that there is no credit risk resulting from the cooperation of PLL with Ryanair. “PPL is currently trying to force Ryanair to pay airport fees before each flight because, as they claim, the risk that Ryanair will not pay invoices on time is high. Last week, Ryanair announced record profits, which amounted to over EUR 569 million (after tax) and the company possesses cash reserves of over EUR 3.5 billion, which only confirms that PPL’s arguments are unfounded. PPL’s claims and demands seems to be unfair, especially taking into consideration the fact that LOT is provided with extremely favourable payment terms,” said Komorek. According to Ryanair, the reason for such behaviour is to obtain money which can be later used to finance LOT’s operation at Warsaw airport.
Onet.pl

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Long Polish Weekends

The Polish Way

Increasingly fewer Polish people want to work during ‘long weekends’. Research carried out by Work Service concludes that Poles prefer to take time off and rest. The number of people taking leave during ‘long weekends’ has increased by 11% this year. Work Service asked people if they took time off during the May weekend. According to the research, 44% took at least one day off during the first week of May. Of this group, 31% took three whole days off. That is 200% more people than last year. “Workers have gotten used to weekend trips and that is why they are more likely to take days off. The increase is significant. In some companies this means that there are several hundred fewer workers during this period,” says Tomasz Hanczarek, chairman of Work Service. He adds that that this is beneficial phenomenon. “Instead of using costly equivalents (bonuses etc), workers use their leave in the normal way,” says Hanczarek. Work Service concluded that people with higher education as well as young people are most likely to take days off during ‘long weekends’. Older workers and people living in rural areas are more likely to stay at work during this period. “A tendency to take short holidays and short trips is a part of one’s lifestyle, usually favoured by young and educated people from larger cities. Short trips to the seaside or to the mountains with friends are very trendy,“ says Krzysztof Inglot, manager of Work Service. 30% of Poles planned to holiday for the Corpus Christi ‘long weekend’. The majority will holiday for three to four days. 65% of those surveyed do not plan to travel anywhere. “The majority of Poles choose to spend their days off somewhere in Poland. Holidays abroad are not common. Most cannot afford it, and even if they can they prefer to have longer holidays during the summer,” adds Krzysztof Inglot.
Rzeczpospolita

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Best Wages – Top Earners

Land of Milk and Honey?

The Central Statistical Office (GUS) has released the latest report concerning employment and salaries in Poland in 2012. It includes the average gross salaries listed according to the particular sector of the economy. The average monthly salary in Poland in 2012 was PLN 3,521.67 which is approximately 3.5% more than the previous year. The average wage in the public sector amounted to PLN 4,107.25, while in the private sector the average was PLN 3,343.31. When compared to the previous year, an increase was noted in all sectors. The highest increase of 7.5% was to be found in agriculture, forestry, hunting and fishing. The lowest, on the other hand, was in information (technology) and communication. Salaries in construction did not change. The top fourteen salaries in all sectors of the Polish economy are as follows:
1) Administration and support services: PLN 2,489.01
2) Accommodation and gastronomy: PLN 2,561.47
3) Trade; repair of vehicles: PLN 3,345.19
4) Health care and social assistance: PLN 3,361.28
5) Transport and storage: PLN 3,533.50
6) Construction: PLN 3,702.19
7) Education: PLN 3,770.25
8) Industry: PLN 3,831.43
9) Real estate industry: PLN 3,877.96
10) Agriculture, forestry, hunting and fishing: PLN 4,307.82
11) Public administration, defence, social security: PLN 4,395.47
12) Professional, scientific and technical activities: PLN 5,242.55
13) Finance and insurance: PLN 6,248.59
14) Information and communication: PLN 6,473.75
Onet.pl

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College Graduates Unemployed

Looking for Work

Sometimes even fluency in Arabic does not guarantee a salary above PLN 2,000 for college graduates. What kind of job offers await the young and unemployed at employment agencies? Current unemployment amongst young people is at record-breaking levels. For those with a higher education it seems to be even worse. At the end of March, more than 2,500 college graduates were registered as unemployed. Things have never looked so bad. What do employment agencies in larger Polish cities have to offer those who are young and unemployed? The situation is not encouraging. In Poznań a qualified eurhythmics (music) teacher might earn PLN 20 an hour. A craft, design and technology graduate fluent in English or German would be paid a meagre PLN 2,500 a month, the salary of an accountant is similar. An IT specialist might earn PLN 1,200 working part time. He or she does not have to have a higher education, being a graduate of a IT high school is enough. A company in Wrocław is looking for a finance director, but the requirements are necessarily high: apart from fluency in English and Russian, a good command of Ukrainian is required. Knowledge of a rare language, however, does not guarantee extra money. A trade company is looking for someone fluent in Arabic, but pays only PLN 1,800 a month. A kindergarten teacher might earn around PLN 2,400. In Kraków, accountants have the greatest chance of finding a job. Their salary varies between PLN 1,300 to PLN 7,000 per month. The situation of technical engineers in Kraków is not so bright, however. An engineer working as a solar panel specialist might earn about PLN 1,500. In Łódź a broker’s assistant, with an average knowledge of English, might make about PLN 1,600, the same as a psychologist or physiotherapist.
Gazeta Wyborcza

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Politicians Making Millions

Greedy Politicians

In 2012, the ruling Civic Platform (PO) registered a total income of more than PLN 53 million, making it Poland’s richest political party. PO’s financial statements for the last year show that without money from the budget politicians would be penniless. The state budget is the main source of income for all of Poland’s parliamentary parties. If they were to rely on payments and donations from their supporters only, they would have no chance of survival. Curiously, the report also shows that the largest party did not make use of professional advice from experts. Contrary to previous announcements, most parliamentary groups spent negligible sums of money on expert economic, legal or social advice, as they prefer to use the money on election campaigns. Of PO’s PLN 53 million, PLN 48 million came from the state coffers. The party obtained less than PLN 2.4 million from contributions from supporters, while only PLN 1 million from donations. Civic Platform spent less than PLN 800,000 on expert advice with the majority of this amount, about PLN 733,000, spent on publishing materials. Law and Justice (PiS) is similarly wealthy, with an income of almost PLN 50 million last year, out of which PLN 47 million came from the state coffers. It would be also impossible for Jarosław Kaczyński’s party to survive if it was financed exclusively by contributions from its members and supporters. Last year PiS made a meagre PLN 2 million PLN from membership fees and PLN 55,000 came from donations from supporters. According to their accounts, one supporter, a banker from Poznań, contributed a record payment of PLN 20,000 to the party. Additionally, PiS made PLN 670,000 on bank interest and spent PLN 2 million on expert advice in 2012. Other parties registered much less. The Polish People’s Party (PSL) registered an income of PLN 15 million, the Democratic Left Alliance (SLD) PLN 14.3 million, while Palikot’s Movement (RP) registered an income of PLN 8.5 million.
Rp.pl

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Polish House Prices Set to Rise

Time to be a player?

It seems that housing prices have now reached their lowest level in six years. This trend, however, is likely to reverse during 2013 due to decreasing supply. Those looking for a property, but still waiting to make a move should buy. Changes in the banking sector are one of the reasons why this is so. Favourable reductions in mortgage rates and the liberalisation of regulations on granting mortgages will possibly result in the long-awaited unblocking of demand. Since November 2012, the Monetary Policy Council has already lowered NBP interests rates threefold. In January, the main reference rate amounted to 4%, however it is expected to further drop up to 3%, as some analysts predict. Thus, monthly instalments will be lower, while creditworthiness will be higher. Currently, due to too many properties being on the market, less strict restrictions concerning the financing of purchases and the huge demand of Poles to posses their own flat, the housing market will begin to bounce back. Consequently, the number of transactions will increase and properties will be sold much more quickly.

On the other hand, the range of offers will become narrower, while sellers less flexible. Therefore, it is better to take the opportunity and realise one’s purchase plans now, especially because current price levels are comparable to those back in 2006-2007. For instance, the average price of a two-room apartment per square metre in January 2013 was: PLN 7,590 in Warsaw; PLN 6,480 Kraków; PLN 5,360 Wrocław; PLN 5,210 Gdańsk; PLN 5,190 Poznań; PLN 4,440 Katowice and PLN 3,790 in Łódź. According to Reas, the number of completed and as yet unsold houses in six major Polish cities amounts to about 15,000. The over-abundance of housing is best illustrated by the disproportion between the number of buying and selling offers, which in January 2013 was 1:19, according WGN Real Estate. At the same time, the latest data provided by GUS (Central Statistical Office) indicates that the number of new houses introduced into the market will fall in the forthcoming years. 165,092 permits to build houses were issued in 2012, which is 10.3% less than in 2011, while 141,798 houses were actually constructed (which is 12.6% less than last year). The conclusion is obvious. We should take a chance and benefit from the special offers of developers, consider all opportunities and negotiate, negotiate, negotiate. What is certain is that the decision to buy a house or apartment should not be postponed.
Biznes.pl

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Divorce Your wife, Not Your Mortgage

Financial Shackles

During divorce childcare turns out to be much easier to divide than a mortgage. Even if officially separated, the ex-husband and ex-wife must pay the debt together. Statistics do not lie: one out of four marriages will fall apart sooner or later. According to GUS (Central Statistical Office), there were 204,000 last year, while 63,000 ended painfully. At the same time 196,000 mortgages were taken out and the majority of them by marriages. For banks, separation from each other does not mean a separation from the mortgage. You can divide a car, house or furniture, but not a loan. “Even if by the decision of a court, one of the spouses has to move out, he or she is still obliged to pay the mortgage instalments. If either stops paying, the bank will seek to recuperate money from both of them and the divorce will be no excuse,” as Leszek Zieba, a financial expert from Aspiro, points out. The best solution in this situation is to sell the apartment or house, pay off the mortgage and divide the rest of the money. Such a possibility, however, remains out of reach for those who, for example, took out a mortgage in Swiss francs, as the mortgage is frequently considerably higher than the value of the property. Thus, the best way out could be to reassign the mortgage to one person only. This procedure, however, is the same as taking a new mortgage, with no special treatment for the divorcee. “Married or not, it is always better for banks when two people repay the debt, as two incomes are always more secure than one,” explains Paweł Majtkowski (an independent expert on personal finance). Assigning the mortgage to one person also involves considerable costs. This includes a bank fee for changing the contract, which could amount to several thousand zlotys dependent on bank charges and the sum of money indebted and the costs related to the land register, which should not be more than a few hundred zlotys. If, however, one person is unable to pay the instalments alone, it is advised that a new partner is assigned as a co-debtor instead of the former spouse, which could also increase creditworthiness and result in better treatment by the bank. If, for various reasons, this is also not possible, it is advised that changes are introduced to the mortgage. Instead of having a joint property, spouses can grant shares in the property. This procedure costs only a few hundred zlotys and each divorcee is obliged to pay his or her part of the instalment. If one person stops paying his or her part of the loan, the bank will demand the money from both parties. As Paweł Majtkowski adds, Poles are usually so afraid of losing their property that even quarrels with the former spouse are not the reason to stop repaying instalments. Unfortunately, lack of agreement about the mortgage is dangerous for both parties.
Wirtualna Polska

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