A significant anniversary inevitably causes us to reflect upon the period gone by. The sub-prime mortgage crisis in the US started in 2007 and, after spreading to other countries, became the global financial crisis that caused the longest-lasting recession of the post-war era. This recession, in conjunction with other factors, triggered sweeping changes in the Hungarian legal market. In retrospect, clear, recognizable patterns have emerged in the ten years since then.
As summarized in CMS’s recently-released Emerging Europe M&A Report 2016/2017, the year just concluded, 2016, was an eventful one in Europe, as it included weak global growth and overall investor cautiousness, an attempted military coup in Turkey, a vote for the UK to leave the European Union, continued unrest in the east of Ukraine, continued application of sanctions in Russia, and the first full year of a new populist right-wing Government in Poland. There was plenty therefore to be concerned about, and we all feared what impact this might have on M&A deal activity in the region as a whole.
Before any of our readers ask: indeed, Moore’s Law is not really a law. Rather, it reflects the prediction by Intel Co-Founder Gordon Moore in 1965 that, based on his observation at the time that the number of transistors per square inch on integrated circuits had doubled every year since the integrated circuit was invented, that trend would continue into the future. Many since have described his prediction as the rhythm of the beating heart of technological developments.
As I write this editorial, we are celebrating three years since the CEE Legal Matters website (now already on its third version) first went online. To say that trying to think back and identify one major theme that shaped our last few years is difficult would be a real understatement, but because David has written up one too many of our recent editorials, that challenge falls on me.
After 27 years of a free market economy and parliamentary democracy, 17 years inside the NATO structure, and 12 years of membership in the European Union, it is easy to forget how much has changed in Poland since the fall of communism. Looking back (and having the perspective of over two decades of professional experience), it is safe to say that nothing would ever be the same after Poland’s transformation.
Tomas Rychly has been appointed a Judge on the Supreme Administrative Court of the Czech Republic, and the Wolf Theiss Prague Managing Partner will be leaving Wolf Theiss sometime early in 2017 to take up his new duties. In making that move, Rychly becomes the first major commercial law firm lawyer ever to serve on the Czech judiciary.
Attorneys tend to navigate their clients through stormy legal waters so that clients do not crash on the rocks of Scylla. But how good are we leaving the paternalistic client-care world and trying to navigate our own destiny in terms of our legal business facing the reality of severe competition, pricing pressure, and the legal profession becoming just a commodity?