Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Kenya’s opposition files a petition against presidential vote

Read more

MEDIAWATCH

'Siempre vida Barcelona'

Read more

THE DEBATE

Spain attacks - Can Europe prepare for vehicle-ramming terror attacks?

Read more

EYE ON AFRICA

Measures in place to prevent Grace Mugabe leaving South Africa

Read more

IN THE PAPERS

Terror in Barcelona

Read more

BUSINESS DAILY

Terror attack, Trump turmoil rattle stock markets

Read more

FRENCH CONNECTIONS

Malbouffe: understanding junk food à la française

Read more

IN THE PAPERS

Lebanon repeals 'rape law', but activists say more is needed to protect women

Read more

BUSINESS DAILY

US business leaders abandon Trump after Charlottesville

Read more

FOCUS

Our Focus programme brings you exclusive reports from around the world. From Monday to Friday at 7.45 am Paris time.

Latest update : 2010-09-09

Poland leads the EU field for finance

It's not just with the economic forum in Krynica that Poland is trying to take a lead in Central European finance. Warsaw's stock exchange has lofty ambitions. And the relative health of the Polish economy - the only one in Europe not to suffer a recession - has allowed Warsaw to emerge from the crisis as market leader. Warsaw's burgeoning financial centre is turning the Polish capital into a London of the east...

More than 1,800 academic, political and business leaders are gathering in the Polish mountain resort of Krynica to discuss Central Europe's economy, and its integration with Western Europe, and the bloc's neighbours to the East.

Over its 20-year lifespan, the Krynica economic forum has developed from being a mainly Polish event to one with significance for the whole of Europe. And that's no accident. Poland has an active ambition to become the most important financial centre for the region.

The decision, in 1991, to house the new Warsaw Stock Exchange in the former communist party headquarters was one charged with symbolism. And now that stock exchange is racing ahead of its nearest rivals. The value of domestic companies listed in Warsaw is now 55% percent higher than on the Vienna Börse, and more than double Athens' total. Warsaw is even closing the gap on the whole consortium of exchanges (including Budapest, Prague and Lubljana) owned by the Vienna Börse.

"It would be very nice and very helpful to the Polish economy to become the 'London of the East'", says Ludwik Sobolewski, CEO of the exchange, which has now moved next door. "Or rather, of Central and Eastern Europe, because that is how we define the area where we would like to be a financial hub, and a stock exchange which is not a local one".

The growth of the Warsaw exchange is not just a result of the country's sustained growth rate. It is also a product of the centre-right government's concern to cut Poland's deficit by privatising large, state-owned enterprises. IPOs by insurer PZU and energy giant Tauron made a big splash this year, attracting both individual players and foreign investors, who accounted for a record 47% of total trading in the first half of 2010.

The development of the financial services sector in Warsaw has also been fuelled by the exchange's alternative market, New Connect, which has allowed small and medium-sized businesses to find capital. Anna Nietyksza of Eficom, a company that helps other businesses prepare their flotations on new connect, puts it simply: "We're going through a boom."

The Warsaw Stock Exchange itself is due to be floated in November. Many are whetting their lips at this prospect, but some analysts are sceptical. "I would support a different scenario", says Pawel Szalamacha, a former deputy treasury minister who now heads the Sobieski Institute think tank. "The ownership of the exchange should be spread among various private institutions, but it should not go public. This would avoid creating the strange situation where the stock exchange, in order to increase its short term profits, relaxes rules at the expense of the safety and reliability of the market". The current government, however, has preferred to take a gamble.

By Gulliver CRAGG

COMMENT(S)

Archives

2017-07-27 French politics

France: Teething problems for Macron's fledgling party

President Emmanuel Macron's "La République En Marche" party is having its first teething problems, as it transitions from a grassroots movement to France's most powerful...

Read more

2017-07-28 France

Was Jewish pensioner's murder religiously motivated?

We look at a recent murder in France that received relatively little media attention. In early April, Sarah Halimi, a 65-year-old Jewish woman, was killed at her Paris home by...

Read more

2017-07-26 Americas

The limits of affirmative action in Brazil

Brazil has the highest proportion of so-called "mixed race" people in the world. Yet only 13% of people aged 18 to 24 in that category are enrolled at university. Back in 2012,...

Read more

2017-07-25 Africa

Kenyan authorities step up security amid Al-Shabaab threat

The last few weeks have seen a rise in attacks by Al-Shabaab Islamists along the Kenya-Somalia border. One area particularly affected is the county of Lamu, where 18 people have...

Read more

2017-07-24 Africa

How Senegal is leading the fight against AIDS in West Africa

Amid the ongoing international AIDS conference in Paris, we take a closer look at efforts being made to fight the disease. In its report published last week, UNAIDS revealed that...

Read more