Panattoni to deliver 18,000 sqm of logistics space in Bydgoszcz for LPP Logistics

Panattoni has signed a lease agreement with LPP Logistics for over 18,000 sqm of warehouse space at Panattoni Park Bydgoszcz II. The logistics company, part of the LPP Group, will use the facility to support the growing operations of the Polish fashion retailer across Central Europe.

The new space will serve the distribution needs of LPP’s retail brands, including Reserved, Cropp, House, Mohito, and Sinsay. Located within Bydgoszcz city limits, the facility complements LPP’s existing logistics infrastructure, situated near the company’s main fulfilment centre in Białe Błota and approximately 100 km from another distribution hub in Brześć Kujawski.

Sebastian Sołtys, CEO of LPP Logistics, said the location was selected for its operational advantages, offering proximity to key distribution points and supporting the company’s broader retail network.

LPP Group, which operates in 41 countries and manages over 2,500 retail stores, has previously partnered with Panattoni on logistics developments. These include a 69,000 sqm fulfilment centre in Jasionka and a 64,000 sqm facility in Pruszcz Gdański, both serving the company’s e-commerce operations.

Panattoni Park Bydgoszcz II consists of a single building offering more than 36,500 sqm of industrial space. It is located adjacent to the Bydgoszcz Industrial and Technological Park, 3 km from the city bypass and national road 80, and 9 km from the S10 expressway junction.

According to Dorota Jagodzińska-Sasson, Managing Director at Panattoni, the Bydgoszcz region continues to attract large-scale logistics projects. The developer has delivered over 550,000 sqm of industrial space in the Kuyavian-Pomeranian Voivodeship to date and sees further development potential in the area.

OECD Warns: Rising debt levels pose risks to future investment capacity

Governments and corporations significantly increased their borrowing in 2024, raising a total of USD 25 trillion from financial markets. This figure is USD 10 trillion higher than levels seen before the COVID-19 pandemic and nearly triple the amount borrowed in 2007, according to the OECD’s Global Debt Report 2025: Financing Growth in a Challenging Debt Market Environment.

The report finds that both sovereign and corporate debt levels are expected to grow further in 2025. The marketable debt-to-GDP ratio for central governments in OECD countries is projected to reach 85%, up by more than 10 percentage points from 2019 and nearly twice the ratio seen in 2007. At the same time, bond yields have increased in key markets, even as policy interest rates have started to decline, making new borrowing more costly.

The rising cost of debt, coupled with already elevated debt levels, risks limiting the ability of governments and companies to finance future investments. Much of the borrowing over the past decade and a half has been used to manage economic shocks, notably the 2008 financial crisis and the COVID-19 pandemic. Now, additional investment will be needed to address long-term priorities such as economic growth, productivity, demographic shifts, and defence spending.

OECD Secretary-General Mathias Cormann noted that the current environment demands more efficient public spending and a focus on borrowing that supports long-term productivity. He also stressed the need for policies that encourage businesses to direct borrowing toward investment rather than financial restructuring or shareholder distributions.

Sovereign bond issuance in OECD countries is expected to rise to USD 17 trillion in 2025, up from USD 14 trillion in 2023. Total outstanding sovereign debt is projected to reach nearly USD 59 trillion by 2025, an increase from USD 54 trillion in 2023.

Emerging markets and developing economies have also seen rapid growth in sovereign borrowing, increasing from around USD 1 trillion in 2007 to more than USD 3 trillion in 2024. China alone accounted for 45% of total issuance in 2024, a substantial increase from its 17% share during 2007–2014.

The global stock of corporate bond debt reached USD 35 trillion at the end of 2024, resuming a trend of continuous growth that paused briefly in 2022. The bulk of this increase has come from non-financial companies, whose outstanding debt has nearly doubled since 2008. However, much of this corporate debt has been used for financial operations—such as refinancing or shareholder returns—rather than for investment in new projects or productivity improvements.

Governments are already feeling the pressure of higher borrowing costs. In 2024, interest payments as a share of GDP increased in around two-thirds of OECD countries, reaching an average of 3.3%—exceeding average spending on defence. This rise in interest obligations also raises refinancing concerns, with nearly 45% of sovereign debt in OECD countries set to mature by 2027. Similarly, about one-third of all outstanding corporate bonds will mature within the next three years.

Central banks continued to reduce their presence in sovereign debt markets throughout 2024. Their share of domestic sovereign bonds in OECD countries dropped from 29% in 2021 to 19% in 2024. In contrast, domestic households increased their share from 5% to 11%, while foreign investors’ share rose from 29% to 34%. Sustaining current levels of debt will likely require more involvement from price-sensitive investors, potentially adding volatility to the markets.

This year’s report also includes a thematic analysis of climate finance. It finds that at current growth rates in public and private investment, advanced economies would not meet the Paris Agreement goals until 2041. The outlook for most emerging markets is more challenging, with alignment unlikely before 2050 without significant policy changes.

Meeting global climate targets would require a sharp increase in public spending, adding further to debt burdens. Alternatively, greater reliance on private investment would necessitate rapid capital market development, especially in emerging markets. The OECD stresses that financial regulatory reform will be crucial to unlocking the full potential of debt markets for climate transition financing.

Panattoni and Newport Logistics Fund to develop speculative logistics facility in Milton Keynes

Panattoni, a major logistics real estate developer in Europe, together with Newport Logistics Fund III, will develop a 100,000 sq ft speculative logistics facility in Milton Keynes, approximately 50 miles northwest of London.

The joint venture has acquired a five-acre site on Yeomans Drive from the former occupier, Tesa UK. A detailed planning application for the project, known as Panattoni Milton Keynes 100, is expected to be submitted in the second quarter of 2025.

This marks the first project for Newport Logistics Fund III, a pan-European investment fund launched in August 2024. The fund is focused on the development, leasing, and sale of modern logistics properties that adhere to environmental and sustainability standards.

Szymon Ostrowski, Managing Director of Newport Logistics Fund, said the development reflects the fund’s objective to deliver sustainable, high-quality logistics assets in key European markets. He noted that Milton Keynes is a strong location with ongoing occupier demand, making it consistent with the fund’s investment strategy.

James Watson, Head of Development for Southern England and London at Panattoni, added that the facility is intended to provide modern and sustainable logistics space to meet market needs in a strategically located area.

Newport Logistics Fund III is part of the Panattoni group and supports logistics development across Europe, covering land acquisition, construction, leasing, and eventual sale. The fund targets an annual return of 15%, with backing from professional investors including high-net-worth individuals and family offices across Europe, the UK, the US, and the Middle East. All projects developed under the Newport fund follow environmental, social, and governance (ESG) guidelines and comply with Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR). Facilities are also designed to meet BREEAM certification or equivalent sustainability standards.

Experts warn of dire risks from improper installation of rooftop photovoltaic systems

The growing popularity of rooftop photovoltaic (PV) systems in the Czech Republic is bringing new safety concerns, as experts warn that improper installation significantly increases the risk of fire. With more households and commercial buildings turning to solar energy, fire safety specialists and industry regulators are urging stricter oversight and better technical standards to ensure installations are safe and reliable.

According to fire protection authorities, the number of fire incidents involving photovoltaic systems, while still relatively low, has increased in recent years in line with the rise in installations. Investigations reveal that many of these fires are linked not to the solar panels themselves, but to installation faults — particularly in electrical connections, inverter systems, and cabling.

“The problem is not with the photovoltaic technology as such,” said Petr Doležal, a fire safety expert at the Czech Fire Protection Association. “Most often, the risk arises from improper installation — cables running too close to flammable materials, poorly executed connectors, or systems that are not properly grounded. These are avoidable mistakes that can have serious consequences.”

In some cases, PV systems are installed by companies or individuals lacking proper certification or electrical training. Industry representatives are calling for tighter regulation and mandatory certification for installers to reduce risks. The Czech Chamber of Renewable Energy has emphasized the importance of using qualified professionals and adhering to manufacturer guidelines and national safety standards.

Beyond the installation itself, maintenance plays a crucial role in preventing hazards. Dust, leaves, snow, and pests can all affect system performance and safety. Regular inspections and thermal imaging checks are recommended to detect overheating parts before a malfunction can lead to fire.

Insurance companies have also begun responding to the trend. Some are adjusting policies or requiring additional documentation for properties with rooftop PV systems. “We are not discouraging solar power,” said one insurance representative. “But we are advising homeowners to ensure systems are installed and maintained professionally to reduce risk.”

The Czech Ministry of Industry and Trade is currently reviewing its guidelines on photovoltaic installations, with the aim of introducing stricter quality controls and potentially making fire-safety inspections mandatory for larger systems. Officials also point out that while the risk exists, it can be effectively mitigated with proper planning, installation, and follow-up.

As demand for renewable energy grows, experts underline that safety must not be an afterthought. With photovoltaic systems becoming a common feature in residential neighborhoods, ensuring their safe integration into building infrastructure will be critical in maintaining public trust and preventing avoidable accidents.

Polish prosperity index drops again in March, reflecting slower wage growth and job losses

March 2025 brought another dip in economic sentiment, as the Prosperity Index declined by 0.2 points compared to the previous month. The latest drop continues a concerning trend, reflecting a more difficult environment for both employees and employers.

The decrease in the index was primarily driven by two factors: a slowdown in wage growth within the enterprise sector and a continued decline in the number of companies employing workers in this category. Inflation, meanwhile, remained stable in February following a revision of commodity group weightings in the consumer price index. As a result, inflation had a neutral effect on the overall index.

Real wage growth slowed to an annual rate of 4.9 percent, now matching the current rate of inflation. This marks a significant decline from a year earlier, when wage growth was nearly double that figure. The deceleration is partly due to a smaller increase in the minimum wage compared to last year, which has reduced upward pressure on salaries in lower-income brackets. Additionally, weaker sales results in the manufacturing sector have limited companies’ ability to offer wage increases.

Employment in companies with more than ten employees has also continued to shrink. Over the past two years, the sector has lost nearly 75,000 full-time jobs, with the downward trend persisting since February 2023. Experts suggest that this decline is unlikely to reverse until the broader economy shows signs of recovery and business investment begins to rise again.

As companies grapple with uncertain market conditions and cautious spending, both job creation and wage growth remain under pressure. The outlook for the coming months will depend heavily on economic signals and whether business confidence begins to recover.

Source: BIEC

Czech construction control system restored after DDoS cyberattack

The Czech Republic’s information system for construction proceedings is once again fully operational, following a disruption caused by a cyberattack last week. The system, which facilitates communication between newly implemented digital platforms and older local systems still in use by some building authorities, experienced an outage due to a Distributed Denial of Service (DDoS) attack.

According to Karolína Nová, spokesperson for the Ministry of Regional Development, the attack targeted the so-called “technological bypass” — a key interface designed to bridge older systems with the new digital infrastructure introduced as part of the government’s broader effort to modernize and streamline construction permitting processes.

The outage had temporarily affected the ability of building authorities to process documentation and applications through the centralized digital system. However, the ministry confirmed that the technical issues were resolved and the system was fully restored on Thursday evening. As of Friday, authorities across the country have resumed operations according to the original rollout schedule.

A DDoS (Distributed Denial of Service) attack works by overwhelming servers with an excessive volume of requests from compromised devices, effectively rendering services inaccessible to legitimate users. While no sensitive data was reportedly compromised, the attack highlighted the vulnerability of critical government infrastructure during periods of digital transition.

The Ministry of Regional Development noted that it has since taken additional steps to reinforce the system’s cybersecurity protections, working closely with national IT security agencies and external specialists. These measures include strengthening firewall protections, enhancing real-time monitoring, and deploying faster response protocols to prevent future incidents.

The digitalization of construction proceedings, which formally began in 2023, is part of a nationwide effort to reduce bureaucracy and increase transparency in the construction approval process. Despite some initial technical challenges, the system is expected to bring long-term efficiency benefits to developers, municipalities, and citizens.

Officials emphasized that while the recent attack caused temporary delays, no long-term damage occurred. The Ministry reaffirmed its commitment to the continued digital transformation of public services and to ensuring the resilience of state IT systems against future cyber threats.

Source: CTK

Over one million people in the Czech Republic work under employment agreements

More than one million people in the Czech Republic are currently working under employment agreements, according to recent data from the Czech Social Security Administration (CSSA). In the second half of last year alone, workers on these agreements earned a total of CZK 40.7 billion, yet only CZK 2.7 billion — less than seven percent — was subject to social insurance contributions.

Since July 2024, employers have been required to report income from employment agreements monthly to the CSSA. Contributions are only required when earnings from an agreement exceed a quarter of the national average wage. For 2025, this threshold is CZK 11,500 per month.

In December, the CSSA recorded over 1.02 million individuals working under these agreements, which amounted to more than 1.24 million individual contracts. However, only about 25,300 of these agreements exceeded the contribution threshold and had social insurance paid. The remaining agreements fell below the limit and were not subject to levies.

Nearly 190,700 employers used such agreements in December, collectively paying more than CZK 6.5 billion in wages. On average, an individual earned CZK 5,122 under an agreement during that month. Social insurance contributions were paid on just CZK 478.7 million of that total.

Filip Pertold, Deputy Executive Director at the Institute for Democracy and Economic Analysis (IDEA) and adviser to the Minister of Labour, has voiced concerns about the widespread use of these contracts. He argues that they are often used as a substitute for standard employment and represent a form of tax optimization. According to Pertold, many workers are involuntarily employed under agreements, which were originally intended for short-term or casual work.

Experts also point out that these agreements often take the place of part-time jobs, an area in which the Czech labour market lags behind the EU average. Only about ten percent of workers in the country are employed part-time. In such roles, regular levies apply, though employers benefit from reduced premiums for certain groups, including parents of young children and those nearing retirement.

To address these issues, the think tank PAQ Research has proposed reforms aimed at easing the tax burden on low-income and part-time workers. Their proposal includes increasing tax allowances for individuals and families, expanding eligibility for tax bonuses, and reducing taxes on shorter working hours. According to PAQ, such reforms could encourage up to 50,000 people to shift from informal or agreement-based work to regular employment.

The Ministry of Labour is also planning a deeper analysis of employment agreement data. Analyst Magdaléna Klimešová noted that the ministry aims to identify barriers to part-time employment expansion. She emphasized that work under agreements not subject to levies does not count toward social insurance, which may affect future pension entitlements. Klimešová added that the low flexibility of the Czech labour market contributes to the heavy reliance on these types of contracts.

Source:CTK

Kamco Invest completes exit from Yargıcı in sale to TIMSGROUP

Kamco Invest has completed the sale of Yargıcı, a Turkish fashion and lifestyle retailer, to TIMSGROUP, a diversified Turkish business group with operations spanning content production, tourism, construction, and land development. The transaction represents the final exit of the Global Buyout Fund (“Under Liquidation”), a private equity fund managed by Kamco Invest outside the State of Kuwait.

The sale concludes a strategic process conducted under challenging economic conditions in Turkey, marked by high inflation and elevated interest rates. Kamco Invest navigated the complexities of the transaction to secure a successful outcome, positioning Yargıcı for continued growth under new ownership while remaining aligned with the brand’s heritage and values.

Founded in 1978 as a men’s fashion store, Yargıcı has evolved into a lifestyle brand known for its minimalist design and focus on quality craftsmanship. Since expanding into women’s fashion in 1988, the brand has broadened its portfolio to include accessories and home décor. The introduction of Yargıcı Homeworks in 2015 further strengthened its presence in interior design.

According to Mohammad F. Al Othman, Senior Executive Director of Alternative Investments at Kamco Invest, the transaction is the result of a multi-year value creation strategy that included operational restructuring and strategic repositioning, particularly through the COVID-19 period. He noted that Kamco Invest’s role extended beyond capital investment to supporting the long-term development of the business.

TIMSGROUP founder Timur Savci expressed optimism about Yargıcı’s future, citing the brand’s identity and strong market presence as key strengths. He emphasized TIMSGROUP’s intention to integrate its experience across industries to support Yargıcı’s growth and enhance its brand story.

The acquisition is expected to open new opportunities for Yargıcı, with TIMSGROUP aiming to build on the brand’s legacy while expanding its reach in Turkey and potentially to international markets.

KPMG acted as the financial advisor and Acar Ergonen Avukatlık Ortaklığı served as legal counsel for TIMSGROUP. On the sell side, StellarConsult (Stellar Consult Danışmanlık A.Ş.) was the financial advisor, while Esin Avukatlık Ortaklığı (a member firm of Baker McKenzie) provided legal advice.

German Research data law: Unlocking better policy and science through data access

The end of Germany’s traffic light coalition has put a hold on the proposed Research Data Law, a piece of legislation intended to improve access to research data, promote evidence-based policymaking, and enhance scientific output. Drawing from international examples, the proposed law aims to increase the quality and practical use of scientific research in political decision-making. Better data access is linked to more efficient use of public funds, which is particularly relevant given the scale of tariff-funded expenditures anticipated from 2025.

The proposed Research Data Law addresses longstanding structural issues. It includes the creation of a central “data trust point” to support secure, pseudonymised data linking across diverse sources. The law also aims to modernize legal frameworks for data access and introduce streamlined, remote-access procedures that would bring Germany closer in line with global best practices. Policymakers argue that such changes are essential to evaluate public spending, assess policy effectiveness, and design solutions to complex societal problems.

The suspension of the bill due to the coalition’s collapse last November has raised concerns. The legislation had reached an advanced stage, and various stakeholders had already been consulted. Analysts now urge the incoming government—likely led by the CDU/CSU and SPD—to resume and finalize the bill, warning that restarting the process from scratch would lead to unnecessary delays.

Currently, researchers in Germany face considerable barriers to accessing, linking, and analyzing public data—barriers that are less common in other EU countries. The COVID-19 pandemic made these issues particularly visible, as German policymakers had to rely on international data (such as from Denmark) for domestic decisions. Without local, relevant data, the transferability of such findings is limited, often leading to less effective policies.

These data challenges are not limited to health. In fields like education, housing, social policy, and economic reform, the absence of accessible research data has hindered the ability to make informed decisions. For instance, the debate over minimum wage impacts, rent controls, or the effectiveness of recent hospital reforms has often lacked a robust empirical basis. Researchers point out that Germany’s inability to assess the outcomes of its pandemic-era economic relief programs was due, in part, to delays in accessing company data.

The proposed law would help address these problems by enabling researchers to conduct timely and detailed evaluations of government initiatives. By allowing secure, pseudonymised access to sensitive data, it would help strike a balance between protecting individual privacy and enabling data-driven policymaking. The law also seeks to eliminate “data silos” by ensuring interoperability between databases, coordinated through the new trust point structure.

A key provision of the bill is the expansion of remote access to research data. Currently, this is only available through a few institutions and with heavily anonymised datasets, which reduces the analytical value. The new framework would allow broader access to formally anonymised or pseudonymised data without compromising personal privacy. These data could be used by approved researchers for specific projects, improving transparency and utility while preserving confidentiality.

Another issue the bill addresses is the mandated deletion of public data after a set period—typically 30 years. Many argue that such rules waste valuable taxpayer-funded data and hinder the ability to learn from the past. For example, more than three decades after German reunification, valuable insights could still be gained by comparing the transformation processes of East Germany with other post-socialist countries. Such long-term analysis becomes impossible if historical data is routinely deleted.

The proposed legislation builds on the European Union’s General Data Protection Regulation (GDPR), which already provides mechanisms for using personal data in public interest research. The law would formalize procedures that ensure data is securely stored and used under clearly defined conditions. The goal is to foster an environment where research and public policy can benefit from comprehensive, responsibly managed data access.

Ultimately, the delay in passing the Research Data Law represents a missed opportunity for Germany to modernize its approach to research and governance. In contrast to countries that have improved both the volume and relevance of academic work through better data access, Germany still lacks the legal infrastructure to make the most of its research potential.

The draft legislation already tackles major problems and offers practical solutions, including improved legal clarity, secure data integration, and scalable access systems. With modest political prioritization, these reforms could be implemented quickly. The next federal government is urged to act swiftly, not only to avoid further delays but to support scientific advancement, more effective public spending, and greater economic competitiveness in an increasingly data-driven world.

Source: DIW Berlin

Czech clothing and service prices soar since 2020, food inflation matches EU trend

Since the start of 2020, the Czech Republic has experienced significantly faster price growth in several consumer categories compared to the rest of the European Union. According to an analysis by Cyrrus on inflation trends between January 2020 and January 2025, clothing, audiovisual equipment, and accommodation services in the Czech market have seen the most notable price hikes across the EU.

Prices for accommodation services in the Czech Republic surged by 58.3 percent over the five-year period, representing the highest increase among all EU countries. The EU average for this category was considerably lower at 29.5 percent. Similarly, photographic and audiovisual equipment also saw substantial price growth in the Czech Republic. While most EU countries recorded a decline in prices for these items—an average drop of 5.3 percent—the Czech Republic experienced a 20.1 percent increase, the highest in the union.

Clothing costs in the Czech Republic rose by 49.3 percent, far surpassing the EU average of 11.4 percent. Home textiles followed a similar trend, climbing 48.5 percent in the Czech market, compared to just 13.8 percent across the EU—again marking the fastest growth in this category among member states.

In contrast, food prices in the Czech Republic remained aligned with the broader EU trend. Between January 2020 and January 2025, food prices rose by 33.6 percent—very close to the European average. By comparison, neighboring Slovakia and Poland saw significantly sharper increases, with food prices rising by 47.9 percent and 46.6 percent respectively.

Gasoline prices in the Czech Republic also rose more moderately. Since January 2020, the cost of fuel increased by 13.4 percent—well below the EU average of 21.7 percent during the same period. This made the Czech Republic one of the countries with the slowest growth in fuel prices.

Overall, while the Czech Republic faced one of the highest cumulative inflation rates in the EU over the past five years—at 39.8 percent, ranking fifth in the bloc—the price surges were not evenly distributed across sectors. While essentials like food and fuel followed EU-wide trends or remained below average, categories like clothing and accommodation saw disproportionate increases, setting the Czech Republic apart in the broader inflationary landscape.

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