PKN ORLEN at the St. Petersburg International Economic Forum
Jacek Krawiec, CEO and President of the Management Board of PKN ORLEN, took part in today’s debate entitled “European crossroads: post-crisis scenarios” during the 2012 International Economic Forum in St. Petersburg. The debaters devoted a lot of attention to urgent steps that should be taken, as well as long-term measures necessary to overcome the crisis, both in Europe and around the world. Also, the invited guests discussed lessons that should be drawn to minimise threats posed by crises in the future. On numerous occasions, they emphasized Poland’s economic success, especially in contrast with the economic and political situation in Greece.
“Our lesson for the crisis-struck countries is simple: work, work, work. That is the prerequisite for exploiting the opportunities you have, just like we did. It requires an active and brave society and sometimes resistance to a bit of pain, like homesickness of our emigrants. Times are hard, so the reaction from everybody in the society, from the lowest ranks to the elite, must be tough as well. You can plant a tent in the heart of the city and protest, but it cannot be your first choice. Protests will not feed you for sure. In turn, doing one’s job extremely well gives us some chance for growth. Europe needs to take radical, quick steps, which will be tough for societies, but indispensable to overcome the crisis,” said Jacek Krawiec, President of the PKN ORLEN Management Board.
Mr. Krawiec noted that the globally-known Balcerowicz Plan, which enabled Poland to transform its economy and overcome a deep, long-term crisis, had been drawn up in just 100 days. Also, Mr Krawiec pointed out that the current difficult climate in Europe provides an opportunity to take stock of the situation and implement further changes, both in companies and across entire economies. He believes that decision-makers should not be guided by short-term financial gains, but should have in mind long-term effects of their actions as well as principles of sustainable growth.
“Both companies and ordinary people need to understand that stock exchanges are not casinos, just like loans are not a source of easy growth. Once again in history, it appeared that one cannot borrow money indefinitely. Under the government of Andreas Papandreou in the 80’s and the first half of the 90’s, the Greeks believed that the wealth of the country can be built on loans. This pernicious belief was strengthened in the first decade of the monetary union. Too low interest rates set up by the European Central Bank and the large-scale involvement of German and French commercial banks meant that almost everyone in the country could count on a favorable loan. Prosperity lasted. Now we know the consequences of such an attitude and we must make every effort not to repeat these mistakes in the future,” emphasized Jacek Krawiec.
The other debaters frequently cited Poland as an excellent example of how to go through painful reforms and cope with the global crisis. Mr Krawiec noted, however, that Poland would not have achieved its success, if it had not joined the European Union. Through to its membership, Poland obtained and then prudently spent EU funds, which fuelled economic growth, created new jobs and thus facilitated the development of the entire country.
“Poles believe in the extremely crucial project that the European Union represents,” said PKN ORLEN’s CEO.
Mr. Krawiec also emphasied that there is no other way than savings combined with a reasonable development plan, as best demonstrated by PKN ORLEN, where austerity measures took priority at the outbreak of the crisis. At present, the Company has a robust financial standing thanks to the deleveraging its balance sheet from 70% to 30% in the last three years. PKN ORLEN’s current strong position enables it to paln and implement new development projects, which proves that austerity programmes should be considered as an opportunity and not as a setback.
Apart from Jacek Krawiec, the following guests took part in the debate: Willem Buiter, Chief Economist of Citigroup; Erik Berglöf, Chief Economist and Special Adviser to the President of the European Bank of Reconstruction and Development, Jacob Nell, Executive Director of Morgan Stanley Russia, Xavier Rolet, Chief Executive at the London Stock Exchange and Ksenia Yudaeva, Chief Executive at the Center for Macroeconomic Studies, Sberbank.
As it was last year, the President of the PKN ORLEN Management Board will also take part in a closed panel discussion attended by heads of the world’s largest petroleum and energy companies and chaired by Marie van der Hoeven, Executive Director of the International Energy Agency, and Daniel Yergin, Chairman of IHS CERA.
The St. Petersburg International Economic Forum, held annually since 1997, is frequently called the Russian Davos. On June 21st–23rd, representatives of the world’s largest companies and top politicians will take part in a series of debates devoted to various issues affecting the European and global economy. This year’s edition focuses on to the role of leaders in various fields in context of the current economic situation around the world. The following persons have confirmed their participation in this year’s forum: Vladimir Putin, Russian President; Henry Kissinger, American politician, diplomat and laureate of the 1973 Nobel Peace Prize; Denis Flory, Director General of the International Atomic Energy Agency; Sri Mulyani Indrawati, Managing Director at the World Bank, Alexander Novak, Russian Energy Minister, Taner Yıldız, Turkish Energy Minister; Tharman Shanmugaratnam, Deputy Prime Minister and Finance Minister in Singapore; representatives of the largest energy companies: Total, Rosneft, Lukoil, Gazprom, BP, ExxonMobil, ENI, GDF Suez, Enel, Chevron, Eni, Statoil, E.ON, ConocoPhillips, OMV, PKN ORLEN; representatives of the largest industry players: Nokia, Daimler AG, Airbus, Boeing, Alcoa, Alstom, Sibur, DuPont, Novartis, Coca-Cola, Intel, GM, Siemens, PepsiCo, EADS, Bombardier, Microsoft, IBM, Google; financial institutions, including Unicredit, BNP Paribas, Citigroup, Morgan Stanley, CNBC and organisations, such as the World Bank, the European Commission and the International Monetary Fund.
