Dariusz Tokarczuk, Managing Partner, GLN; Bertrand Oldra, Head of the Real Estate Department, GLN; and Robert Jędrzejczyk, Partner, GLN talk with Beata Gołębiewska

France is top of the league when it comes to foreign investment in Poland. Why?
Dariusz Tokarczuk: Different reasons have been put forward-historical, cultural, geographical... Certainly the Poles and the French enjoy working together for these reasons. Yet when it comes to business, we should be realistic. The reasons for success are simple: supply and demand. The French offer excellent goods and services that the Poles need. Conversely, Poland offers development opportunities that the French need. There's a strong Polish will to develop a well-trained and qualified workforce. And there are needs in almost all of the areas in which the French have strengths, in diverse sectors: telecommunications, infrastructure, rail transport, nuclear power, banking, insurance, agro-industry, wholesale and retail distribution, cosmetics, luxury goods, cars, hotels, architecture and quality real estate, to name but a few.

Bertrand Oldra: Of course common heritage has played a crucial role as well: both countries' legal systems are based on Roman law, consolidated by the Napoleonic Code. That may sound quite technical, but during negotiations it often allows businesspeople to refer to similar concepts, such as rules of contractual obligations, liability and indemnity. Besides, Poland and France are both countries where the administration has, shall we say, an influence. Thus, the Poles and the French are used to charting a course between the liberal economy and state regulation.

Your firm has its roots in France. Does this allow you to understand better the needs of French entrepreneurs operating on the Polish market?
D. T.: Seventy percent of our Polish associates graduated from French-speaking universities (Paris, Brussels, Québec) and they are completely bilingual. We systematically offer our associates fruitful long-term internships in these countries. Finally, we can call on a solid group of expatriate lawyers with specific sector specializations (M&A and real estate, for example). You could not wish for a better way to assist our French clients.

B. O.: It's an interesting question of course but, as a Frenchman, I think what our clients demand, first and foremost, is that we provide them with a quality legal service dealing with Polish law in an international environment, regardless of their nationality, whether it be Polish, English, German, Italian, or Spanish. Yet, in the field of legal advice, French lawyers' methods do have their advantages, and they will become increasingly apparent as they are seen to meet clients' expectations: clear contracts, tailor made schemes, superior organization and logical reasoning are praised to an ever greater extent.

Robert Jędrzejczyk: ...and this tendency is perfectly reflected in the international development of our firm. Taking your metaphor, our firm certainly has its roots in France, but its branches reach abroad to some 20 offices worldwide. Recently, we have been opening up two new offices per year (probably in Hong Kong and Ukraine in 2006). This is not by chance: it indicates a correlation between the expectations of the business community and our own approach to law.

What kind of transactions does GLN Warsaw specialize in?
R. J.: Certain practices dominate: M&A and privatizations, real estate, energy and finance. Others fields are experiencing a real boom: intellectual property, commercial litigation and tax. Overall, our ambition is to offer comprehensive services so that our clients can turn to us for answers to all their business law questions. That is why, for example, we are currently developing our employment, IT and tax teams.

What legal obstacles must be removed to enhance the flow of foreign capital into Poland? Will Poland remain open to foreign investors?
D. T.: Nothing major needs to change. Admittedly, some of the existing rules need improvement and clarification, in the areas of real estate and tax for example. Concerning foreign investment, no real obstacles remain. It is clear that the inflow of capital and foreign investors is a blessing, despite the fears of a certain section of the population. Returning to the example of France, I would remind Polish readers that the majority of shares on the French stock exchange are held by foreign funds. This has not changed the "French way of life." On the contrary, it has stimulated its development.

How do you assess the prospects for the development of French investment projects in Poland?
B. O.: They will grow in volume and their profiles will expand. The majority of French-based multinationals are already present in Poland, but we can expect smaller enterprises to make their presence felt, as our minister of foreign trade recently indicated. On the other hand, we can certainly expect institutional investors, such as French insurance funds, banks and pension funds, to become more active as they search for stable and secure investments or for those offering highly-structured products, such as securitization. Recently we have been approached by several players of this type, asking us to conduct legal feasibility studies for their projects.

To conclude, a few words about French entrepreneurs-what should Poles know or worry about?
R. J.: Take notes during meetings, otherwise you won't be taken seriously.

B. O.: The French do love their baguettes, but it's actually a long time since I've seen anyone wearing a beret! (smiles) The French have changed greatly over the last 20 years. The times when we needed translators for each meeting are long gone. Nowadays, you deal with French managers who graduated from schools and universities which emphasise international education. The vast majority of them have taken part in exchange programs (such as Erasmus), completed internships abroad, worked for international companies, lived as expatriates and learned to adapt to foreign habits.

D. T.: They are smart negotiators and proud people, of course... just like Poles, which is actually no bad thing. In an environment that is globalizing at an ever increasing pace, it is good to find a balance between national identity and international outlook. This, I think, is precisely what the French have managed to achieve, so Poles should not worry. We are not that different after all.