Iberian interest

Business ties between Poland and Portugal are drawing the two countries closer together. Evidence of this can be seen in the fact that, for the second time in three years, conference organizer Roadshow Polska chose Portugal as the site for its annual businesss conference. In 2005, the year of Roadshow Polska's first visit to the country, Portuguese investments in Poland stood at x372 (zł.1,414) million. By the end of 2006, this number had jumped to x820 (zł.3,117) million.

Businesspeople from both countries were upbeat at this year's conference. "Poland is our main international market," said Francisco de Lacerda, a member of Millenium Bank's board.

Other Portuguese firms are starting to say the same for their operations. "The Polish branch has been the biggest company in Jerónimo Martins Group for three years now," said Pedro da Silva, the general director of Jerónimo Martins Dystrybucja (JMD), operator of the Biedronka network of stores in Poland. Moreover, da Silva noted, JMD provided 43 percent of the group's turnover in Q1 of 2007. The share is likely to increase as the company plans to open 350 new Biedronka stores in the next three years.

Portuguese firms have an advantage on the Polish market because of shared experience. Portugal entered the EU in 1986 and in the following years experienced many of the challenges which Poland faces today. "We have recent experiences in a similar reality. We experienced it all 15-20 years ago," de Lacerda stated. With the mature Portuguese market reaching a saturation point, firms are turning to the CEE region to reap profits, and to Poland in particular.

JMD is the largest Portuguese investor in Poland, having already invested X400 (zł.1,520) million by the end of 2006. With the firm's ambitious plans, this figure will increase significantly. "In the years 2007-2009 we plan to invest another E500 (zł.1,900) million in Poland," da Silva remarked.

For its part, Millenium Bank already has 366 branches in Poland employing over 5,300 people. In July the number of outlets scheduled will increase to 400. The bank's 2006 profit in Poland of x77.2 (zł.293.5) million represented a 44 percent increase year-on-year. Customer assets grew by 26 percent to reach x5.1 (zł.19.4) billion. "These are the kind of figures we don't have in Portugal," de Lacerda said.

Millenium Bank also wants to benefit from the Euro 2012 competition. "We plan to be actively present in Poland during this time," de Lacerda said, adding that the bank will use experience gained from helping to finance similar projects during Portugal's preparation to host Euro 2004.

With over x26 (zł.98.8) billion available for transport infrastructure expenditure in Poland over the next six years, it's no wonder that Portuguese companies working in the business see Poland as a land of opportunities.

"We invest in both highways and airports, so for us Poland is a priority at this moment," said Guilherme Magalhães, a member of the board at Brisa, a highway operator. Nevertheless, he complains about red tape in Poland, which hurts business. "I hope that Euro 2012 will be a reference date that obliges the authorities to make decisions," he summed up.