ALL IN THE MIX: MIXED-USE REAL ESTATE PROJECTS ON THE RISE
WHERE ROMANIA TALKS BUSINESS April, 2017 / Volume 21, Issue 3
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MULTI-SPEED EU MOVES CENTER STAGE IN BUDGET DEBATES
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ANA HOTELS: A HOSPITABLE INVESTMENT ENVIRONMENT
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ROMANIANS DESIGN FOR THE STARS
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THE WINDING ROAD TO PPP
www.business-review.eu Business Review | April 2017
• Editorial •
Ovidiu Posirca • Senior Editor •
EDITORIAL 3 REAL ESTATE 6 All in the mix: mixed-use real estate projects consolidate on local market
12 Real estate investments could reach EUR 1.4 billion in 2017
COVER STORY
Enhancing cooperation between investors and policymakers Cooperation should be the most important plank in relations between the private sector and public sector officials. With economic growth already set to fall below 5 percent this year, the government must look at additional ways to enhance Romania’s investment potential. One clear move that would signal the authorities’ maturity would be the launch of public-private partnerships (PPPs). Such initiatives require a high degree of trust between state institutions and private investors that are willing to share the risk in such longterm projects. Business Review’s cover story this month outlines the potential of PPPs to mobilize major investments across the economy at a time when the international landscape is marked by major uncertainties. Although it has taken the authorities seven years to come up with new PPP legislation, replacing the old law that was simply broken, investors have been patient. Now, both sides should get to the drawing board to start designing investment projects – Romania still needs roads, bridges, railways, hospitals, schools and airports. And the money is there – there is billions of
14 Romania hoping to unlock PPP investments with new law 17 Making PPPs work for local transport infrastructure 18 Romania takes first steps towards PPPs in healthcare sector 19 PPP for energy sector remains in the shade 20 How PPPs could provide a breath of fresh air for local R&D ENTREPRENEURSHIP 25 Hungry for expansion: Nuba cofounders eye Monte Carlo, London
26 A healthy approach: Akasha brings wellness message to local market
28 Social businesses need more support from state
euros of EU funding available for such investments and the local banking system has recently been saying that it is ready to fund major infrastructure works. “Putting Romania to work” might sound like a political slogan, but this is something the country needs right now and it could be done through honest partnerships between the public and private sector. It remains to be seen how the PPP might work in relation to the planned sovereign wealth fund, a new government initiative that looks good on paper, but which raises serious transparency questions as to the way in which the public funds will be managed and spent.
CITY 40 Instant confusion: posh coffee shop menu a grind, not a peak
42 Love takes center stage in Sibiu
44 Cannes-do attitude: local firms mark golden year at Gopos
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu, HEAD COPY EDITOR: Debbie Stowe COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu SALES CONSULTANT: Valeria Cornean, EVENTS DIRECTOR: Oana Albu, MARKETING: Adina Cretu, Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
ISSN NO. 1453-729X
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4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
BMW is looking for Romanian IT&C companies to develop solutions in auto industry
Silviana Petre Badea is the new managing director of JLL Romania as of this March. She joined the real estate consultancy in 2015, as head of capital markets. During this period, Badea has contributed to the expansion and evolution of the team, and to the range of services offered to clients. For the past two years, JLL’s operations in Romania have been led by Andrew Peirson, who at the same time managed the SouthEast Europe region from the company’s Belgrade office.
BMW seeks local software providers
said Joachim Goldbach, pur-
By Georgiana Bendre
This is why the auto giant is
drive at BMW, who led the carmaker’s delegation in Romania.
Representatives of German car
panies and we already have a
focusing on software develop-
manufacturer BMW met with
shortlist of companies that will
ment and looking for business
over 40 Romanian IT compa-
eventually provide software
partners in the country, he
nies in March to talk about the
solutions to BMW. This is further
added.
development of software solu-
proof that Romania is attractive
tions that can be applied to the
not only from the perspective
that Romania produces a lot of
auto industry, according to the
of low salaries. It is even more
IT&C industry talent, this being
local Ministry for the Economy.
attractive for supplying added-
one of the reasons why the
value products and services to
country is attractive to BMW.
started at government level
international companies like
“We are looking for a wide
after the Romanian authorities
BMW,” said the official during a
range of software solutions. It
were contacted by BMW last
press briefing.
could be entertainment solu-
This is an initiative that
year, said Alexandru Petrescu,
Adrian Pascu has been promoted to commercial vice-president of the dairy division of Danone Russia starting this March. He was previously general director of Danone Romania, Bulgaria and Adriatic Countries. This is Pascu’s second stint at Danone Russia after having served as sales director between 2013 and 2015. Before that he held various leading positions in the sales department of Danone Romania.
chasing manager for collective
Autonomous, connected, elec-
Goldbach also pointed out
tions, part of entertainment
the economy minister. “We
tric and shared vehicles (ACES)
solutions or connectivity. The
succeeded in having an open
are a major current challenge for
results of the collaboration will
discussion with a significant
the auto industry, which requires
be seen in several years,” added
number of local IT&C com-
innovative software solutions,
the purchasing manager.
Romanian GDP set to grow by 4.4 pct this year, says EC By Ovidiu Posirca
The European Commission, the executive arm of the European Union, has predicted in its winter 2017 economic forecast that
page 5
Romanian’s economy is set to grow by 4.4 percent this year, while the public deficit target
Romania’s budget deficit under pressure this year, says the European Commission
www.business-review.eu Business Review | April 2017
NEWS 5
Uber has 250,000 users in Romania
Uber aims to launch UberPool, cut Bucharest traffic by a third by 2020
Mihail Ion has been appointed CFO of Raiffeisen Bank. He joined the lender in February 2002 as manager of the research division of the treasury and capital markets division. In 2005 he was appointed president and CEO of Raiffeisen Asset Management, a position he held for 10 years. After that Ion served as executive director in the corporate division and was in charge of medium corporations and the public sector.
By Ovidiu Posirca Technology company Uber is
Schroeder in a press conference.
by one third through to 2020,”
looking to launch its UberPool
She added that Uber is currently
said the executive, of the po-
service in Bucharest in the
able to cover demand in the
tential impact on the Romanian
next year and a half, in a bid to
suburbs of Bucharest and that
capital.
further expand the user base
20 percent of trips come from
of the app, which is currently
node of transports. In short, this
and Select services in Roma-
available in four Romanian
means that a user of the app
nia and the company plans to
cities.
in Bucharest might take public
launch its UberEats platform
transport to the center of the city,
in the country in the second
then take an Uber home.
half of this year, according to
Nicoleta Schroeder, general manager of Uber Romania, said that the service reached
The GM added that Bucharest
Uber currently provides its X
the GM. According to an IRES survey
250,000 users last year, grow-
will be the first city in Central
ing three fold year-on-year.
and Eastern Europe where Uber
commissioned by Uber, three
will launch its pool service, in the
out of ten young people in
next year and a half at the latest.
Bucharest and Cluj-Napoca use
“We envisage a future with fewer cars, less pollution and fewer parking spaces,” said
“We hope to reduce the traffic
or have used the service.
of 3 percent of GDP will come
CFOs surveyed by Deloitte Roma-
under increasing pressure.
nia, the professional services
In 2018, Romania’s output will fall to 3.7 percent, according to the EC. Meanwhile, the center-left government led by Sorin Grindeanu has based this year’s budget on a GDP growth rate of 5.2 percent and a public deficit below 3 percent. “Private consumption is expected to grow steadily in 2017, before it moderates slightly in 2018 as consumer prices pick up,” said EC experts. The majority of Romanian
Cosmin Samoila has become CFO of New Kopel Group. He has over 11 years of professional experience in the financial industry. Previous positions include senior auditor with E&Y Romania and head of controlling with Adama Holding. He is a member of the Association of Chartered Certified Accountants (ACCA) and of the Romanian Chartered and Certified Accountants Body (CECCAR).
firm, put this year’s GDP growth estimate at 2.6 percent.
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Miruna Smeureanu is the new marketing director of Coca-Cola Romania & Moldova starting this March. She is replacing Nicoleta Eftimiu, who after 19 years at the company has been promoted to franchise country manager. Smeureanu has been with the soft drinks producer for the past 15 years. Over these period she has filled local and regional positions in the communication, public affairs and marketing departments and has worked on projects involving all of the company’s soft drinks brands.
www.business-review.eu Business Review | April 2017
6 REAL ESTATE
All in the mix: mixed-use real estate projects consolidate on local market Mixed-use real estate projects provide a solution for overcrowded cities and also cater to the growing demographic of Millennials, which means this developing trend is set to grow further in the years to come. By Simona Bazavan
Palas Iasi, Iulius Group’s first mixed-use project, was opened in 2012 following a EUR 265 million investment
W
orking and shopping within walk-
infrastructure – one that local developers are
ing distance from home sounds
increasingly open to investing in.
like a dream come true for any
“Romania is starting to develop some of
Bucharester stuck in traffic or crammed into
the characteristics that led to the large-scale
overcrowded subway trains at rush hour.
adoption of the mixed-use project concept in
Mixed-use real estate projects that bring
the Western and Asian real estate markets,”
together office and retail, or even office, retail
Stefania Baldovinescu, senior partner at
and residential components under the same
Colliers International, told BR. These include
roof, provide a solution to overstretched city
rapid growth and urbanization, the increas-
www.business-review.eu Business Review | April 2017
REAL ESTATE 7
ing cost of land, which in turn determines
DEVELOPERS SHOW NO MIXED FEELINGS
a need for more intense land use, growing
One such developer is Vastint Romania,
competition between developers which leads
currently developing a mixed-use real estate
to greater interest in more differentiated and
project in the Timpuri Noi area of Bucharest,
innovative projects, and the development of
which it says will bring together offices, retail
suburban office districts combined with ever
and housing under the same roof.
growing traffic, she outlined. The synergy resulting from combining
Antoniu Panait, managing director of Vastint Romania, told BR, “When done well,
office, residential and retail spaces has been
mixed-use development sections work to-
confirmed over the past decades and is not
gether and complement each other to benefit
totally new for the local market either, Oana
the people, no matter the combination.”
Iliescu, managing director at Cushman &
Offering the “full package” is one of the main
Wakefield Echinox, told BR.
advantages behind this type of development,
Some of the first such projects on the local
he adds. “It helps both the employee work-
market include Upground in Pipera, which
ing within the complex and the employer,
is made up of two office buildings as well as
supporting a better work-life balance and
more than 500 apartments, and the Plaza
increased productivity, by greatly reduc-
Romania shopping mall next to which Anchor
ing commuting time and associated stress,
built the Anchor Plaza office building more
among other benefits.”
than a decade ago, she added. The combina-
Not only is Vastint Romania venturing into
tion of retail and office has been replicated on
a part of Bucharest so far left largely un-
a larger scale by AFI Europe, which has built
touched by developers, but it is also including
70,000 sqm of office space next to the AFI
a residential component in its Timpuri Noi
Cotroceni shopping mall.
Square, something local players have been
Similar projects can be found outside Bu-
reluctant to do so far. “The residential compo-
charest as well. Iulius Group has invested in
nent is currently planned as the last phase of
a mixed retail and office project in Iasi and is
the project, following 100,000 sqm GLA of
now replicating that model in Timisoara. Lo-
modern class A office, commercial and retail
cal businessman Ovidiu Sandor is betting on a
services already on their way with the first
residential and office project in the same city
two buildings and a plaza,” he told BR.
after having previously invested exclusively
Elsewhere, Immofinanz Romania says that
in office developments. In Brasov, Immochan
the various segments of the real estate market
is looking at adding a housing component to
are becoming less distinct as developers
its shopping mall, while AFI Europe has an-
tune into the needs of a changing consumer.
nounced a retail and office project of its own.
“As Immofinanz’s strategic focus revolves
Similar schemes can be found in Cluj-Napoca
around the office and retail sectors, we have
and Oradea.
seen how the lines between these areas can
Notably, some of the first projects of this
become blurred. Thanks to an optimum and
kind were not initially designed as mixed-use
varied tenant mix, all our office properties in
developments but rather as retail projects,
Bucharest provide the employees working
for example, Anchor Plaza, AFI Park, Iulius
there with a wide range of retail offers, right
Mall Timisoara and Palas Iasi, notes Marius
in the buildings,” Sorin Visoianu, country
Scuta, national director and head of the office
manager of operations for Romania, tells BR.
department and tenant representation at JLL.
He adds that there is a big potential for this
“The opportunity to build office space next
type of mixed-use building in Bucharest, par-
to these projects arose later with the boom
ticularly as the local economy develops and
of the IT, BPO and call center industries.
the market matures.
The amenities provided by the existence
This is what the company also has in mind
of a shopping mall, plus its location, have
for its future Iride City project in Bucharest,
become a magnet for many companies. Yes,
which will be built around its existing Metrof-
we can say that all of these projects have been
fice office project. “As with all our projects,
and continue to be successful,” he told BR.
we designed the masterplan for Iride City in
Which is why developers are now considering
response to market needs and demands, with
mixed-use projects from the start.
a look at the future evolution of the Roma-
www.business-review.eu Business Review | April 2017
8 REAL ESTATE
nian capital. The idea is to gradually develop a revitalized quarter within one of Bucha-
and new apartments, he adds. Nonetheless, he stresses that there is not
of this kind. In 2012 it opened Palas Iasi, an integrated real estate project featuring both retail and office.
rest’s major business hubs,” noted Visoianu.
only potential for further such projects to be
Immofinanz says it is developing the project
developed but that they meet a real need as
Based on that experience, Manea says
in phases, depending on the ever-evolving
long as the developer secures the right land.
that building a successful mixed-use project
market context. At present it says it is focus-
“The most interesting part of such large-
requires solid background and expertise in “designing and planning its components, determining their share in the project and the way these synchronize and complete one another, financing, the actual construction and most importantly actually running it,” he noted. When successful, such a project is well integrated within the city and manages to host
ing on office properties by further developing
scale projects is coming up with the mix.
different but complementary functions for
Metroffice, and modernizing the existing
The resulting projects have the potential to
several consumer categories, he goes on. “And
Iride Business Park.
become neighborhoods or actual small-scale
this is 24 hours a day, seven days a week. It is
towns based on their complementary ameni-
a working place but also offers those working
mixed-use real estate projects presently un-
ties. The infrastructure is poor but perhaps
there the option to relax after office hours.
derway. Local real estate investor Ovidiu San-
this is the beauty of large-scale projects. They
It is a shopping destination, an open air
dor has recently started works at a residential
can really leave a mark on the city, especially
socializing and entertainment venue for the
and office mixed-use project in Timisoara,
in secondary cities,” said Sandor.
local community made up of young people,
Outside Bucharest too, there are several
western Romania, after having previously invested exclusively in office. “In real estate the land often dictates what
The emergence of such mixed-use real
families and the elderly. This is not theory but
estate projects on the local market is a
the experience we have built with Palace Iasi,”
natural evolution given the speed with which
he added.
is built on it,” he told BR. The developer’s tar-
consumers change their demands, adds
get was to secure the plot of land Isho is now
Laurentiu Manea, manager of office buildings
THE PERFECT MIX?
being built on because of its location. Mixing
for Openville. Openville is a mixed retail and
The advantages that mixed-use real estate
office with residential later became a natural
office project that Iulius Group is developing
projects offer end-users are obvious. Saving
option given that there is demand in the city
in Timisoara around its existing shopping
time otherwise spent in traffic either by living
both for a new generation of office buildings
mall. This is not the developer’s first venture
right across from the office or at least being able to stop for groceries, run errands, hit the gym or grab a bite in a cafe or restaurant on the way home from work count a lot for today’s employees. “Recent years have also seen the focus shift to the work-life balance. While a few years back people didn’t concern themselves too much about how much time they spent at work, the new generation treasures free time and easy access to the office,” Razvan Iorgu, managing director of CBRE, told BR. This is particularly the case for the socalled Generation Y or Millenials, who are making up an increasingly higher proportion of the occupants of modern office buildings. “We live in a time when ‘now, here and close by’ have become the norm. If we add the fact
Isho will require an estimated investment of EUR 130 million
that almost half of those who work in modern office buildings are part of Generation Y, the
www.business-review.eu Business Review | April 2017
10 REAL ESTATE
emergence of mixed-use projects is a normal step,” George Didoiu, associate director of the office agency at Colliers International, tells BR. All in all, this makes office projects that offer a retail and entertainment component, and maybe even residences, attractive to companies looking to lease office space. Mixed-use properties can boast further advantages for developers and commercial tenants alike, consultants add. Combining office, retail and residential in the same project
So far office and retail mixed-use projects
creates synergies, the most common of which
have been the most popular combination,
include business generation across projects,
and consultants say that this trend will con-
such as offices providing retail clients and
tinue.
increased exposure and marketability, plus
There are also signs that new types
better rents, as office space itself can become
of projects will emerge. On more mature
more attractive to companies due to the
markets the combination between retail and
complementary hotel, retail and/or residen-
residential is more common, says Stamate.
tial facilities, says Baldovinescu. “Additional
The advantage of such schemes includes the
profit-enhancing benefits also come from cost
efficient use of land and coming up with an
reductions due to economies of scale, better
attractive residential concept that offers resi-
use of land through higher project densities
dents numerous amenities. The downside is
and faster absorption,” she added.
that reaching 100 percent occupancy is harder
Mariana Stamate, head of property
to achieve for such mixed-use projects and
management at JLL, agrees that mixed-use
inconvenience can arise from living so close
projects can help optimize running and
to a commercial area, she adds.
maintenance costs. Such projects can also be
Office and residential is another option for
more attractive for financing banks given that
the local market. “We expect there to be more
they offer a diversified risk profile, although
mixed-use real estate projects that combine
banks remain selective when it comes to
an office and a residential component. People
financing developers and pay close attention
want to be as close as possible to their work-
to their track record, points out her colleague,
place and spend as little time as possible in
Maxime Otto, senior consultant on capital
their car,” added Iorgu.
markets. For these reasons, consultants are
The coming years should also see the development of projects that bring together
forecasting that more such projects will be
office and some light manufacturing compo-
developed on the local market. In Bucharest
nent; however, “the most attractive combina-
there is both demand and available land to
tion will remain the one between office and
back this forecast, they note.
retail as they both have similar land require-
According to Colliers International data,
ments – large areas in central and semi-
over 500 ha of land is available in Bucharest
central locations with good access to public
as part of former industrial platforms which
transportation,” commented Iliescu.
are sought after, including for such develop-
Altogether, more such projects are to be
ments, Sinziana Oprea, associate director,
expected, especially in cities that are “dy-
land agency, with the consultancy, told BR.
namic urban centers that constantly attract
“In some cases, we can even see develop-
new residents through education and job op-
ers from different market segments working
portunities. In Romania these are Bucharest,
together in order to secure a certain location,”
Cluj-Napoca and Timisoara as well as Iasi,
she said.
Brasov, Sibiu and Oradea,” she concluded.
www.business-review.eu Business Review | April 2017
12 REAL ESTATE
Real estate investments could reach EUR 1.4 billion in 2017 The positive economic outlook, new investors on the market and fresh projects going up for sale should see this year’s investments in real estate acquisitions go as high as EUR 1.4 billion, predicts Cushman & Wakefield Echinox.
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By Simona Bazavan the local market, added Wilkinson. “There
Overall he forecasts that 2017 will not only
are going to be newcomers because people
see a higher investment volume but also land-
believe in this market, the country and its
mark real estate transactions similar to the
economic fundamentals and growth forecast.
sale of America House on the other market
It is a very good place for people to consider
segments too.
investing, whether you are a corporate an investor,” he said. Asked how this year’s overall investment volume will be split between office, retail and
Echinox officially rebranded as Cushman
industrial assets, Wilkinson said he expects
& Wakefield Echinox in March, following a
office to make up a larger share than it did
global exclusive agreement. The formal affili-
last year. “I think that overall office will take
ation follows the 2015 global merger of DTZ
a significant step, industrial will continue to
and Cushman & Wakefield. Local Echinox had
grow too and retail will also be quite consis-
been a DTZ affiliate since 2002.
tent because there were some transactions
A
A NEW NAME ON THE SCENE Local real estate services company DTZ
The new affiliation and rebranding will not
last year and there are some in progress,” he
bring about changes in the company’s man-
predicted. However, after retail accounted for
agement structure, although the local team
a more significant share of the overall invest-
will be expanded and new business lines
ment volume last year, he now expects office
might be added to the current portfolio, said
to catch up and replicate the performance of
Mihnea Serbanescu, GM of Cushman & Wake-
retail assets in 2016, added the partner.
field Echinox. The realtor posted a turnover
The reason for this is that there are more
of about EUR 3 million last year and expects
office products up for sale at present, includ-
an increase of around 35 percent for 2017, ac-
real estate investment volume of be-
ing the landmark America House in Piata
cording to company data. The increase will be
tween EUR 1.2 and 1.4 billion is some-
Victoriei. Should real estate investor AEW
driven by both new business resulting from
thing that the Romanian real estate
Europe reach an agreement to sell it this
the affiliation as well as from the positive
investment market can absorb in 2017, given
year, the transaction is expected to represent
outlook for the local real estate market, said
that in the past ten years it has adjusted and
a new benchmark for the local market in
Oana Iliescu, managing director of Cushman
matured, said Tim Wilkinson, capital markets
terms of yield, just as it did in 2007 when its
& Wakefield Echinox. Also, several important
partner with Cushman & Wakefield Echinox.
present owner bought it from Globe Trade
deals the company is working on have been
Centre (GTC) for EUR 120.3 million. That
postponed to the beginning of this year, she
higher than the EUR 850 million the consul-
meant a record yield of just below 6 percent.
added.
tancy estimates for the previous year – will
Office yields are presently in the area of 7-7.5
depend, however, on several large transac-
percent. Furthermore, real estate investment
real estate services firm, with some 43,000
tions being closed by the end of the year,
fund Globalworth, which has been investing
employees in more than 60 countries, record-
he noted. One argument in favor of a higher
heavily in office properties in recent years,
ed revenue of over USD 5 billion, 4.3 billion sq
investment volume in 2017 is the possibility
has a new partner which will mean additional
ft under management and USD 191 billion in
of several new players setting their sights on
liquidity, suggested Wilkinson.
global transactions, according to its data.
Reaching this level – which is considerably
Cushman & Wakefield is a top three global
www.business-review.eu Business Review | April 2017
EUROPEAN UNION 13
Multi-speed EU moves center stage in budget debates The future of the European Union, with member states moving at different speeds, was one of the main topics of debate during the mid-March plenary sessions in Strasbourg, during which MEPs voted on the guiding principles of the 2018 EU budget.
ment by the end of the year. During the debates, Budget and Human Resources commissioner Gunther Oettinger said that out of every EUR 100 that a European makes, EUR 50 goes into the public coffers on average and roughly EUR 1 goes into the
By Ovidiu Posirca
coffers of the EU. In 2017, the EU budget’s total level of commitments stands at EUR 157.86 billion, with payments at EUR 134.49 billion. One of the main ideas that have been gaining ground in Parliament is an increase in the financial resources that can be used by the
Photo: EC - Audiovisual Service
EU. For instance, some MEPs favor a mechanism under which a share of taxes collected by member states would go directly to the EU budget. “Today, the problem of Europe is not the speed but the direction. We need a new direction for Europe that includes a strong social
A
The 2018 EU budge project focuses on growth and security
pillar and powerful European investment strategy,” said S&D leader Gianni Pittella.
lthough Romania’s president Klaus
economists think that the local economy
Iohannis and PM Sorin Grindeanu
needs to become more competitive before
BREXIT INCHING CLOSER
have rejected the idea of a multi-
attempting to adopt the euro, which could
The debates also touched on the planned exit
happen some time after 2020.
of the United Kingdom from the EU. Accord-
speed Europe, some officials believe that member states are already moving at different speeds when it comes to further EU integra-
ing to British officials, the UK will trigger
NEW EU BUDGET FOCUSES ON GROWTH AND JOBS
article 50 of the Lisbon Treaty on March 29.
Muresan’s report on the guidelines for the
ber states would have two years to negotiate
sion, the executive arm of the European
preparation of the 2018 EU budget was ap-
exit terms.
Union, Jean-Claude Juncker, attended the
proved by 445 votes to 134, with 101 absten-
debates in Parliament and warned against
tions. The key priorities are growth and jobs,
British friends,” said Donald Tusk, president
narrowing the future of Europe to a “two-
particularly for young people, and security.
of the Council. But he rejected “claims, taking
tion. The president of the European Commis-
speed” scenario, saying: “I don’t want a new ‘iron curtain’ in Europe.” Meanwhile, Romanian MEP Siegfried
“On growth and jobs, I propose that we
From this moment, the UK and the 27 mem-
“The doors will always stay open for our
the form of threats, that ‘no deal’ would be
invest more in infrastructure, innovation
bad for the EU. It would be bad for both, but
and research, that we support more SMEs,
for the UK in particular.”
Muresan, rapporteur for the 2018 EU budget,
and that we invest more in entrepreneurs,
claimed that Romania’s acceptance into the
especially highly innovative entrepreneurs,”
British government triggers Article 50 would
Schengen space would remove some people’s
said the MEP, who is part of the EPP Group,
there be a reaction from the member states.
fears regarding a multi-speed Europe.
the largest political group in the European
Although European politicians have said in the last few years that Romanian is technical-
The EU top brass said that only after the
Although next year’s budget will not be hit
Parliament, with 217 members from 27 mem-
by Brexit, European officials are looking at po-
ber states.
tential ways to cover the gap in funding that
ly ready to join the free-circulation Schengen
After the vote in Parliament, the EC is
space, the country hasn’t reached a deal with
expected to present its proposal for the 2018
2015, the UK’s contribution to the EU budget
all member states. For joining the Eurozone,
draft budget in May and the final version has
stood at EUR 7.4 billion, while Romania put in
Romania doesn’t have an official target, and
to be agreed between the Council and Parlia-
EUR 6.5 billion, according to official data.
will open up once the UK leaves the EU. In
www.business-review.eu Business Review | April 2017
14 COVER STORY
Romania hoping to unlock PPP investments with new law
Foreign investors pin hopes on new PPP legislation
The government is promoting public-private partnerships (PPPs) as a new channel for attracting foreign investments to Romania, which last year reached a post-crisis high of EUR 4 billion. The new PPP law comes roughly seven years after the private sector and public authorities struggled with different, flawed legislation. By Ovidiu Posirca
www.business-review.eu Business Review | April 2017
I
COVER STORY 15
nvestors are waiting for the publication of the implementation
of roads, hospitals and industrial assets. The fund should reach EUR
rules for the new PPP law no 233/2016, which was approved at
10 billion in size, according to recent statements by policymakers.
the end of last year. Legal experts have told BR that the new
Legal experts say the new law is more versatile because it
rules should promote functional partner-
provides more financing mechanisms for
ships between public bodies and private
public and private partners involved in such
players, and it might take additional time
projects.
for the authorities to learn the ropes when
“Under the new law, the investment
dealing with such initiatives. Represen-
costs of the project can be funded entirely
tatives of foreign investors in Romania
by the private partner, or by both partners.
suggested that pilot PPP projects should be
For the public partner, the source of fund-
launched first. The government has not yet
ing is, however, limited to EU grants con-
announced any such projects.
sisting of post-accession non-reimbursable
“The only immediate impediment might
funds and the related national contribution.
be the Romanian authorities’ lack of experi-
The public partner may also choose to pro-
ence in conducting PPP projects, which
vide contingent mechanisms, for example
might stall for a while the actual onset of
guarantees to the project lenders, or to
PPP projects in practice. Hopefully this will
grant various rights to the project company,
be quickly overcome, as the legislation of-
such as the right to collect user payments,
fers clearer provisions and guidelines for the
as well as concession, superficies or use
implementation of PPPs than the previous
rights over the assets used for the project,”
legislation,” Nicolae Ursu, managing associ-
Leahu told BR.
ate at law firm bpv Grigorescu Stefanica, told BR. He added that the new law can accom-
Diana Poputoaia, managing counsel at law firm Dentons, added that in order to conclude a PPP contract, the public partner
modate various PPP structures without
must perform a substantiation study on the
overregulation and provides clear separa-
basis of a feasibility study.
tion from the scope of the new concession
“The study shall consider and establish
and public acquisitions legislation that was
inter alia the bankability of the PPP project
rolled out last May.
in order to ensure that the project will bene-
Going deeper into the provisions that interest investors, the new PPP law includes
fit from financing throughout its duration,” said Poputoaia.
two structures for project development. According to Cleopatra Leahu, partner purely contractual nature, where the PPP
PROPERLY IMPLEMENTED PPP RULES COULD BRING FRESH FDI, SAY FOREIGN INVESTORS
agreement is concluded between the public
Foreign investors are waiting for the ap-
partner, the private partner and the project
plication norms of the new PPP law before
company, which is wholly owned by the
starting to think about projects that could
private partner. And there are the PPPs of an
be developed in partnership with the state.
institutional nature that involve coopera-
However, the state will have to provide
tion between the private and public partner
clear guarantees that it will fully comply
within the project company, which is held
with the requirements of such contracts, as
jointly by the public and private sector, and
financial risks could emerge, for instance in
becomes party to the PPP agreement after
the case of projects that run for decades.
at law firm Suciu Popa, there are PPPs of a
its registration.
Madeline Alexander, chair of AmCham Romania’s EU funds, public procurement
HOW PPPS CAN BE FINANCED
and PPP committee, told BR that the application norms of the new
Although the current center-left government led by Sorin Grindeanu
law should allow the local authorities to use PPPs for local infra-
claims that major PPP projects will be financed from Romania’s
structure development as well as to expand on the regulatory frame-
planned wealth fund, it is still too early to say if this initiative is
work concerning treatment and management of PPP fiscal risks.
feasible considering that the fund is still in the design stage. Public
“The key principles that AmCham Romania is promoting in this
authorities aim to turn the Sovereign Fund for Development and In-
context include the need for the PPP norms to simplify the coopera-
vestments (FSDI) into the main financing engine for the construction
tion between the public and private partners, in terms of decision
www.business-review.eu Business Review | April 2017
16 COVER STORY
making and general operational issues, to allow additional types of
infrastructure sectors, including roads and hospitals, as fields in
payment allocations that could make PPPs more attractive from a
which PPPs could work. Sinziana Barbieru,
financial standpoint, and to ensure fair risk-
managing associate at
sharing between the
ONV Law and member
involved partners,”
of the construction
said Alexander.
and infrastructure workgroup within
AmCham Romania represents over 400
the French Chamber
American, interna-
of Commerce and
tional and Romanian
Industry in Romania
companies that have
(CCIFER), told BR the
invested over USD 20
new law reflects the
billion and created
position of the Euro-
around 250,000 jobs
pean Commission,
locally.
the executive arm of the European Union,
“The new law on PPPs should make the realization of projects more likely. Improve-
and includes the good practice principles published by international
ments to legal aspects concerning the execution of PPP projects
financial institutions such as the European Investment Bank and the
brought about by the new law are therefore welcome and received
World Bank.
positively by the business environment,” Gerd Bommer, commercial counselor at the Austrian Embassy in Bucharest, told BR. The German investment community in Romania is also bullish about the new law. Anca Hociota, manager of membership services and vocational training at the Romanian-German Chamber of Commerce and Industry (AHK Romania), told BR that such projects might become reality seven years after the first PPP law was rolled out. Meanwhile, French investors have identified several public sector
12
EUR
billion
the aggregate value of PPP transactions that reached financial close in the European market in 2016, down 22 percent year-on-year, according to the European PPP Expertise Centre
www.business-review.eu Business Review | April 2017
COVER STORY 17
Making PPPs work for local transport infrastructure Public-private partnerships (PPPs) could be one of the new avenues to boosting Romania’s transport infrastructure, but the historically slow pace of development in this field could see the private sector move cautiously. The government, however, claims it can develop projects worth EUR 3 billion for new roads and railways.
U
By Ovidiu Posirca
p to now, the country has failed
runs through to 2020, Romania can put to
to develop any kind of transport
work close to EUR 12 billion of EU funding
infrastructure project based on
for large infrastructure projects, including
PPPs as the previous legislation in this field
transport and energy.
was defective. But going forward, Romania could become one of the European Union member states hosting roads built in part-
CRITICAL NEGOTIATIONS WITH THE PRIVATE SECTOR
nership between the state and the private
The authorities’ plans look good on paper,
sector. Investors are recommending a policy
but negotiations with private investors
of small steps in this field, meaning that
might prove challenging.
some pilot projects should be finished first,
“The state must also understand that
which will require careful planning as in-
PPP projects can only be implemented if
frastructure projects have recorded historic
there are certain guarantees in the back-
delays and budget overruns.
ground. No private company will be able to bear the risk of 20 years of operation of a highway or hospital, for example, if the state could
ROMANIA CAN USE BILLIONS OF EU FUNDS FOR ROAD INFRASTRUCTURE
stop payments for it at any moment without redress. However,
The current government plans to use EUR 3 billion to build highways
continue to develop framework conditions allowing for a mutually
and fast railway lines by tapping the sovereign wealth fund, which
beneficial cooperation on PPP projects,” Gerd Bommer, commercial
is still in the design stage. It is not yet clear how this money will be
counselor at the Austrian Embassy in Bucharest, told BR.
raised, but the authorities say that fund will be used for projects that can’t be finished or started using European Union funds by 2020. “The Sovereign Fund for Development and Investments (FDSI)
we see progress in many areas and are positive that Romania will
Anca Albulescu, partner and head of the real estate and construction department at law firm bpv Grigorescu Stefanica, added that infrastructure projects are easily executed based on PPP structures
together with other international banks – the European Investment
and other European countries have had successful developments in
Bank, the European Bank for Reconstruction and Development and
this sector.
the World Bank have already expressed their interest from the dis-
Meanwhile, PM Grindeanu announced in mid-March that 98
cussions we have had up to now – will build through PPPs highways
kilometers of new highway will open this year. This means that the
which it will control for 30 years and which will be returned to the
country will reach the milestone of 1,000 km of highways in opera-
Romanian state gradually, as the state budget gets more resources to
tion next year.
buy them back,” outlined the governing program of PM Sorin Grindeanu submitted to Parliament in late 2016. PPPs could be deployed for the construction of four new high-
The PM suggested that the highways will be constructed based on the Transport Master Plan approved at European level. Although Grindeanu did not talk about PPPs for the new roads, he said that
ways that would cover the country, including the Comarnic-Brasov
the government was planning new legislation to simplify the strate-
segment – for which the authorities have failed to attract investors
gic acquisitions process that would apply for highways, energy and
under a PPP mechanism.
defense.
EU funds have been one of the main financing options for the development of road infrastructure in Romania, with the country having attracted EUR 3.2 billion of EU money in the 2007-2013 programming period. Under the current financial framework that
1,000
total kilometers of highway that could be in operation in Romania in 2018
www.business-review.eu Business Review | April 2017
18 COVER STORY
Romania takes first steps towards PPPs in healthcare sector The expansion of public hospitals through public-private partnerships (PPPs) appeared on the public agenda for the first time last year, after the former government of Dacian Ciolos inked a memorandum exploring the financial advantages of such a mechanism.
W
By Ovidiu Posirca
ith a new government in power,
man Chamber of Commerce and Industry
PPPs in the healthcare sector
(AHK Romania).
have remained in the shadows,
The association represents around 8,000
as the authorities say they want to build
companies with German capital that have
eight new hospitals based on the country’s
created 250,000 jobs in Romania following
planned Sovereign Fund for Development
investments worth EUR 8 billion.
and Investments (FSID).
Gerd Bommer, commercial counselor at
According to initial plans, two hospitals
the Austrian Embassy in Bucharest, told BR
in Bucharest should be upgraded through
that the healthcare sector in Romania has
PPPs. The European Bank for Reconstruc-
the potential to attract Austrian investors,
tion and Development (EBRD) carried out
as similar projects have been carried out in
a preliminary analysis for these two pilot
other European countries.
projects and estimated that around EUR
Anca Albulescu, partner, head of real
99 million would be needed to build a new
estate and construction at law firm bpv Gri-
cardiology hospital in the Romanian capital.
gorescu Stefanica, told BR, “With respect to
Cleopatra Leahu, partner at Suciu Popa,
PPP projects in the field of healthcare, the
suggested that PPPs could work in various
new law might enable the local authorities
areas of the economy, including healthcare,
to offer support (by availability payments)
but Romania still needed “government will
for certain medical services needed by local
and capacity to leverage private financing to
communities, which are otherwise unlikely
drive investment in these sectors”.
to be made available there. However, the
“PPPs may be regarded as enterprises
public partner’s contribution to such proj-
that require a careful combination of techni-
ects shall be made by observing the condi-
cal, commercial, financial and legal conditions. This is essentially different from prescribing the requirements for a constructed facility, which is typically what the authorities are
tions and regulations regarding: state aid, use of public funds, transparency, non-discrimination, etc.” The financial pressure on the public healthcare sector is striking
used to doing in conventional project deliveries. Instead, the public
by comparison with European figures. In 2014, Romania was the
sector will be granting the private sector the right to operate an en-
member state that spent the smallest share of GDP on healthcare,
terprise (be it a public service or infrastructure), within the bounds
according to Eurostat, the EU statistics office. The country had a
of a contract,” Leahu told BR.
budget of EUR 7.7 billion, equivalent to EUR 388 per inhabitant, or 5.1 percent of GDP. In addition, in the past few years, journalists
PPPS OVERLOOKED IN HEALTHCARE SECTOR
have unveiled major infection risks in some of the biggest public
And the healthcare sector doesn’t appear on the current govern-
hospitals, with stories of patients who died due to bacteria they
ment’s list of the public areas in which PPPs could be tested. The au-
were exposed to while in hospital.
thorities have said that partnerships with the private sector could be negotiated for infrastructure, agriculture, culture and staff training. Looking at the experience of other European Union members, Germany has been able to kick start investments based on PPPs in several sectors, including administration, healthcare, education, sports and infrastructure, according to Anca Hociota, manager of membership services and vocational training at the Romanian-Ger-
These investigations came on the back of the ongoing brain drain in the medical field, with doctors and nurses venturing abroad in search of better working conditions.
2
the number of hospitals in Romania that could be upgraded through PPPs
www.business-review.eu Business Review | April 2017
COVER STORY 19
PPP for energy sector remains in the shade With Romania’s investment requirements in the energy sector forecasted to reach EUR 15-30 billion by 2030, according to its updated energy strategy, the authorities will need to have all financing options on the table, including public-private partnerships (PPPs).
W
By Ovidiu Posirca
hile the current government claims that investments in
potential of PPPs hasn’t yet been exploited. Such partnerships pro-
clean coal and renewable energy are priorities, there are
vide a solution for the medium and long term and can support the
still no investors willing to put their money into large-
development of infrastructure,” said Costache.
scale electricity production units, such as the two new nuclear reactors at Cernavoda, which have a price tag of at least EUR 6.5 billion. Although some players on the local market claim that the era of risky investments in big electricity production units is gone, the
Anca Albulescu, partner and head of the real estate and construction department at law firm bpv Grigorescu Stefanica, suggested that partnerships with private players could be used in the case of energy projects for which public funding is insufficient.
government is courting the Chinese to
“The mechanisms of the new law
develop the nuclear sector. So far, ne-
might also be implemented for long-
gotiations haven’t brought any tangible
awaited energy projects considered
results, and the minister of energy,
unviable in the absence of a significant
Toma Petcu, said in mid-March that
public contribution during the con-
talks with the Chinese would continue
struction phase, as well as the opera-
until the third quarter of this year.
tion phase,” Albulescu told BR.
In 2011, the project was also included on the list of investments that would be financed through PPPs alongside
HOW THE AUSTRIANS LEVERAGE THE POWER OF PPPS FOR CITIES
the hydro-electric and pumped storage
The municipality of Vienna could
plant in Tarnita, which would cost over
serve as an example of good practice
EUR 1 billion to build, and other invest-
in terms of PPPs, as it has attracted
ments in road infrastructure. However,
private companies to a research project
investors have not yet come forward,
for the development of smart cities.
for which the old PPP legislation was
Aspern, a district of Vienna, is being
blamed.
expanded through a research project
With a new PPP law in place, the
that has a five-year budget of EUR 38.5
country could start thinking of rolling out pilot projects to get some
million. The public authorities have been able to attract Siemens,
energy investors on board, but the authorities’ plans seem to ignore
which has the biggest stake in the project, at 44.1 percent.
this option. In the new energy strategy, PPPs are mentioned as one
Through this initiative, the Austrians want to develop new tech
of the avenues for funding R&D in the energy sector. Meanwhile,
solutions that could be deployed across cities in the coming years.
the government thinks that the central heating system could be
The construction phase of the project runs through to 2028 and the
upgraded using PPPs, but such investments have remained on paper
whole development will cost EUR 5.5 billion.
for years.
Locally, Alba Iulia should become the first Romanian city to develop a pilot project for smart city solutions that should be com-
UNUSED ENERGY POTENTIAL
pleted in 2018. The municipality has secured European funding and
According to the World Bank, PPPs could work for the electricity gen-
attracted private partners for this initiative, aiming to launch solu-
eration and transmission sector, while the European Commission,
tions for smart tourism, business, education and management.
the executive arm of the European Union, backs PPPs in the research of energy-efficient buildings. George Costache, CEO of Siemens Romania, the technology group, told BR that PPPs represent a viable solution for the development of infrastructure across the world. “As in any business relation, it is based on mutual trust and on legislation that protects both sides. In Romania, we believe that the
EUR
15-30
billion
the forecasted level of investments needed for Romania’s energy sector, according to its energy strategy
www.business-review.eu Business Review | April 2017
20 COVER STORY
How PPPs could provide a breath of fresh air for local R&D With Romania among the European Union member states with the lowest share of expenditure on research and development (R&D), involvement in public-private partnerships (PPPs), which are backed by the European Commission, the executive arm of the EU, could help strengthen cooperation between public institutions and private players in the country. They could also lay the foundation for the education of tomorrow’s employees.
R
By Ovidiu Posirca
omania allocated 0.49 percent
used across Europe.
of its GDP to R&D in 2015,
The facility in Magurele got over
according to Eurostat, the
EUR 140 million from the EC last year
statistics office of the EU. This was the
for the continuation of construction
second lowest figure of all member
works. As for the researchers that will
states, well below the average alloca-
work here, the director of the ELI-NP,
tion of 2 percent of GDP across the bloc.
Prof. Dr. Nicolae-Victor Zamfir, said
“The R&D field might be a privileged
at an event organized last autumn by
one, as major funding from the EU is
BR that it was hard to recruit young
available for projects in this area and,
researchers.
therefore, investors might be tempted
The population of researchers in
to opt for a PPP project for R&D un-
Romania shrank from 23,000 to 17,500
dertakings. Such a project in R&D or education could offer the two
full-time employees over 2005-2015, according to Eurostat. Further-
partners the chance to share their research and educational infra-
more, the private sector and government have posted a similar level
structure, knowhow and highly qualified personnel for the purpose
of R&D outlay as a share of GDP.
of generating, for the use of both partners, better knowhow, patents, shared expertise, reputation – all at shared costs,” Anca Albulescu,
FOREIGN INVESTORS INTERESTED IN PPPS FOR EDUCATION
partner and head of the real estate and construction department at
While research for the factories of the future is a long-term project,
law firm bpv Grigorescu Stefanica, told BR.
foreign investors in Romania have taken the initiative to make sure
The EC has already launched several contractual PPPs of strategic importance to European industry that are set to leverage more than
they have trained staff in the manufacturing sector today. German, French and Austrian investors are leading initiatives in
EUR 6 billion of public investments to develop new technologies,
the country, in partnership with the government, for the develop-
products and services. EU money will be spent on researching the
ment of a dual education system.
factories of the future, energy-efficient buildings, robotics, advanced
“Several German investors were able to start cooperating with
5G networks for the future internet, high-performance computing
Romanian schools right before the enforcement of the new law (for
and green vehicles.
PPPs e.n.) and we believe the new legislation will provide new opportunities for collaboration. So we expect education to be one of
CREATING THE “LASER VALLEY” NEAR BUCHAREST
the main fields to attract German investors’ interest in PPP projects,”
Research carried out in Romania and marketed locally and across
Anca Hociota, manager of membership services and vocational
the world could become reality in the coming decades, as next year
training at the Romanian-German Chamber of Commerce and Indus-
should see the completion of construction works at the Extreme
try (AHK Romania), told BR.
Light Infrastructure – Nuclear Physics (ELI-NP) project. The facility is
The automotive sector has been one of the main fields in which
being developed in Magurele, 12 kilometers southeast of the capital,
private companies have worked extensively on promoting the dual
and is part of a pan-European project with units in Hungary and the
education system.
Czech Republic. Although the project is being financed directly by the European Commission, ELI-NP will look for partners in the private sector to turn the research output into products and services that could be
0.49
% of GDP
the sum spent by Romania on the R&D sector in 2015, according to Eurostat
www.business-review.eu Business Review | April 2017
22 INTERVIEW
A hospitable investment environment - Ana Hotels welcomes room for growth Christine Schillings, GM of Ana Hotels, talks to BR about the group’s ambitious investment plans and how the local hospitality industry is shaping up in 2017. By Simona Bazavan How much did Ana Hotels post in turnover last year and where did the growth come from?
where we had a very good season both in the
In 2016, the total
behind this.
turnover amounted
mountain resort of Poiana Brasov and at the seaside, in Eforie Nord. There are two reasons
events moving outside of the capital, prob-
which was up by
ably also because Bucharest was packed.
the previous year. If we look at the hotel business alone – because there is
Christine Schillings, general director of Ana Hotels Christine Schillings was appointed GM of Ana Hotels in April 2016. A Belgian national, she graduated from the Hotel Management School in Brussels in 1984, then specialized in asset management and project management at Cornell University. With over 30 years’ experience in the hospitality industry for Hilton Worldwide, she was previously regional director of Hilton Worldwide, where she coordinated a portfolio of 46 hotels in Eastern Europe, Turkey, Russia and Israel. This is her second appointment in Romania after she was part of the management team that opened the Athenee Palace Hilton hotel in 1997.
First we have seen an increase in corporate
to EUR 31.5 million, 9.6 percent against
ABOUT
Leisure activity over the weekend has grown quite well too, so we saw a big increase for our two hotels in the mountains last summer and
as a new destination by a lot of companies because it is seen as a secure location and prices are affordable. We get a lot of positive feedback from them.
had one of the best sea-
also some real estate
sons in Eforie Nord.
business included in
Secondly, as happens
What are your most recent investment plans and the overall investment budget you have set aside for the next three years?
higher, at
in this
The core philosophy of Ana Hotels has been
about 10.6
indus-
and will always be quality. Over the last two
percent.
try, one
years we have seen the business really coming
this result – the increase is
In 2016, growth came partly from Bucharest where Crowne
it often
place’s misery is another’s success.
back again, so based on that and the overall improvement of market conditions, several investments have been decided. One was
Security concerns
already done in 2015 and 2016 when all the
about Western
rooms, the restaurants and the lobby in the
Europe and
Crowne Plaza were renovated for about EUR
Turkey have
4.5 million. In 2016 we also did the lobby of
Plaza
left a lot of
the Europa hotel in Eforie Nord as well as
came
compa-
some upgrades in the outdoor pool area.
back very
nies not
strongly.
knowing
of Hotel Bradul in Poiana Brasov for EUR 1.6
Athenee Palace
where to
million. This will include a refurbishment of
Hilton was more or
hold their
the more than 50 rooms and the public areas.
less stable in terms of
corporate
The whole idea behind it is to create a warmer
occupancy but there was
events.
and more intimate environment with a chalet
a better average rate. The
Bucharest
feel that will also be reflected in the services.
pleasant surprise came from
has been
our hotels outside the capital,
chosen
This year we have started a full renovation
Also this year another EUR 1.5 million will go into extending the ballroom at Crowne
www.business-review.eu Business Review | April 2017
INTERVIEW 23
Plaza, refurbishing the club lounge area as
go up by almost 15 percent. This was the
two months were difficult due to the weather
well as extending and changing the entire
impact of the hotel being renovated. At the
conditions and the social unrest earlier this
concept of the spa there.
Hilton I estimate that it will take us six years
year which led to many companies postpon-
to pay back the investment, speaking about
ing their travel and events. But there has been
What about your plans for the Athenee Palace Hilton?
the incremental revenue, not the global. The
a pickup since the end of February and there
extension too should be paid off in five years.
is no reason to believe this will impact the
Further towards the end of the year, we
Bradul will take us a bit longer because it is a
overall results for 2017.
will also start refurbishing the rooms of the
smaller hotel so between six and seven years.
Athenee Palace Hilton, depending on its oc-
So on average we are looking at payback of
cupancy. We are running a bit late with this
around five years because in the hotel indus-
project due to all the required authorizations
try after five years you have to start again
and also we didn’t want to start during the
with a so-called soft renovation and about
Enerscu Festival. So it will most likely start
every ten years do a complete makeover.
in October, November. Here we are speaking about a EUR 10 million investment, but
You were in Bucharest in 1997 as part of the team the opened the Athenee Palace Hilton and you returned last year to head Ana Hotels. What has struck you about how the local hotel industry and the city itself have changed?
Where do you see potential for growth this year?
When I came here at the end of 1996, the
that will span two or three years as the 272 rooms will be renovated in phases. For the
If you look at Bucharest hotels they are
hotel in the city so it was a lot about setting a
Athenee Palace Hilton we are also looking at
packed between Tuesday and Thursday with
trend and bringing in a new level of service, as
a potential extension by adding a new wing
business travelers and corporate events.
back then there was almost no hotel experi-
with an additional 60 to 70 rooms. That will
Where we have observed growth over the
ence. I remember hiring people based almost
require another EUR 10 million and construc-
last two years is what we call the leisure and
entirely on their attitude and less on their
tion is contingent on securing all the building
weekend business. I have seen it reach a level
actual experience. If you look at the local
permits.
that I would have never believed possible
So as you can see
Athenee Palace Hilton was the third branded
hospitality industry today, you see a
a few years ago. Even when I
lot of branded hotels, which is
there is a lot of in-
was not in Romania I was
excellent because a capital
vestment. Overall
overseeing the Hilton
city needs a lot of inter-
we are close to
here so I have been
planned invest-
following the mar-
bring in guests. Now
ments of EUR
ket. To have an av-
there is a fully-fledged
25-30 million in
erage occupancy
our properties
for central Bucha-
in the next three years, including the extension which will take up a big part of it.
national brands as they
local hospitality culture because there is a new generation of profession-
rest of 80 percent in
als in the industry.
August is something that I
As for the city itself, I
would never have believed a few years ago. Usually summer in Bucharest would have been around 35-40 percent. And this is where I think that there is still
How do you plan to finance this investment?
potential for growth in Bucharest. There is a
It will be through mixed financing: part of it
lot to see and do in Bucharest and outside it.
will come from company funds and part from
We just have to bring people here.
would say that there are lot more cars. I found an old photo of Calea Victoriei in January 1997 and there were only three cars to be seen. I think that Bucharest has changed a lot and for the better. Yes, one can always argue that it could be even better but you have to
a bank loan. We have been working with BRD
What are your expectations for Ana Hotels in 2017 and how do you see the overall market evolving?
consider there have been only 28 years since
We still forecast growth for 2017. If you
Western Europe several decades. I think the
cent split between own funds and the bank
look at the market from 2014 when the busi-
whole society is at a point right now where it
loan, which is a balanced share.
ness started to come back, it will be cumu-
is rebalancing itself. There is a new genera-
lated growth of almost 20-22 percent until the
tion whose expectations and views on life are
What are your expectations in terms of return of investment?
end of this year. Of course the pace of growth
completely different from that of the genera-
is slowing from what we’ve seen over the
tion before.
If we look at Crowne Plaza, whose rooms we
past two years but we are outstripping that.
finished renovating last year, we have seen
So there will still be growth of around 7-8
You can read the full version of this interview
the revenue per available room (RevPAR),
percent this year. Now it is true that the first
online at business-review.eu.
and we will be able to secure this financing based on the strong results we have been posting for the past three years. For the entire investment we are talking about a 30-70 per-
the revolution. What Romania has accomplished in 20 years has taken other places in
www.business-review.eu Business Review | April 2017
24 PERSONAL FINANCE
Money matters – BR aims to help you master your personal finances By Debbie Stowe
I
f there’s one certainty so far in 2017, it’s uncertainty. From the shock Brexit vote in the UK, destabilizing the European Union, along with the rise of the far right, to nocturnal
tweeter and reality TV star Donald Trump ascending to the presidency on the other side of the Atlantic, it’s unclear how the Western world order will fare in the coming months and years. Of course, this has its effect on the markets. In the short term, we’ve seen a collapse in the value of the British pound and big Wall Street oscillations in response to the Trump administration’s dubious agenda. Longer term, it could be travel bans and the planned US-Mexico wall put immigrants
What investment types would you recommend?
off America. At a local level, Romania’s street protests have
Any investment should be suited to one’s
been of a piece with the wider movements and uprisings.
particular needs, with time horizon and risk
property market plunges as EU citizens avoid Britain, while
So as we attempt to negotiate all this volatility and ambi-
aversion among the most important factors.
guity, there’s seldom been a more important time to keep on
Also, it should always be remembered that
top of your finances, and make sure that your assets are well
diversification is a key factor when invest-
protected in the event of further political or economic chaos.
ing one’s money. The current business
And this is where Business Review wants to step up. Over
cycle, with strong GDP increases, strong
the spring and summer, we’ll be researching and preparing a
wage increases, low unemployment and
brand new Personal Finance section, to help our readers make
very low interest rates, makes a strong case
the most of their money. Whether it’s investing in stocks or
for investing in assets with a higher return potential, like stocks or real estate. Over
property markets – or even less conventional vehicles such
time, such assets should add more value, but we should be mindful of the particu-
as art and wine – taking out a mortgage or consumer loan, or
lar characteristics of each.
providing yourself with the security of insurance or a pension, we hope to guide you through the maze, helping you nurture
What advice would you give about investing in any of these assets?
and increase your assets – whether we’re talking about EUR
Always remember your time horizon. One of the most common mistakes is to have
1,000 or EUR 1 million.
portfolios heavily invested in the money market or fixed income. It makes little
And we would like to hear from you. What would help you become more financially savvy? What topics would you like to hear from the experts on? Please send us your ideas and comments, to editorial@business-review.ro. We’ll be drawing on the advice of leading figures in the
sense to keep your money in a bank deposit for a long period of time, but this happens all too often, leading to substantially lower returns over time. When investing in equities, remember that any business has good periods and bad ones, so volatility is normal. If the business is sound, over time it should provide good returns. Be patient.
financial world to bring you the top tips to enhance your wealth. We’ll also be talking to some of the famous faces from
What advice would you give in general to a novice investor?
the worlds of entertainment, culture, sport, politics and busi-
Nobody knows the future – diversification is one of the most powerful and easy
ness about their attitudes to money and financial habits.
concepts available when investing. Look at both risk and benefits. As a general rule,
If you’re a service provider, our new Personal Finance
a riskier investment should provide more return and an asset with higher return
section also offers you the chance to reach our community of
most likely has more risk. A diversified portfolio should be invested in money
financially literate and aspirational readers, all seeking ways
market instruments for short-term needs, in fixed income investments for the
to expand their investment portfolios and safeguard their
medium term and equities or real estate for the long-term horizon. Start early – do
cash. To explore advertising opportunities, get in touch at
not wait until you have large amounts. Proper investing can also be done with small
sales@business-review.ro.
amounts.
www.business-review.eu Business Review | April 2017
ENTREPRENEURSHIP 25
Hungry for expansion: Nuba co-founders eye Monte Carlo, London After taking a bite out of the Bucharest restaurant scene, Nuba’s creators are working towards strengthening the brand’s local presence before exporting their business model to the French Riviera and the British capital, Jean Sasu and Alexandru Nanu told BR.
EUR 200,000, but we will likely spend EUR
By Georgeta Gheorghe
posted a small profit. It came much earlier
300,000,” noted Sasu. The cafe will open for breakfast and close at 11pm. In little over one year since opening, the two venues have welcomed 50,000 clients and exceeded expectations. “We reached breakeven point in the first month and even than estimated; it was a happy situation,”
last year, is already receiving table reserva-
Sasu told BR.
tions two months ahead of reopening. The latest addition to what will form the backbone
relied on several equally important factors.
to open at the end of March in the capital’s
Firstly, the three are a close-knit team who
Dorobanti neighborhood.
share a good knowledge of Bucharest’s night-
The two venues reached breakeven point
life, which helped them discover a gap in
in just one month and posted a EUR 3.5 mil-
the market. “I personally know many of our
lion turnover last year, a figure the founders
clients. We discovered our competitors’ cli-
expect to rise by 30 percent in 2017. BR sat
ents, we studied them, plus I also put myself
down with Sasu and Nanu, who spoke enthu-
in the Nuba client’s shoes and anticipate their
siastically about the idea behind the project,
needs,” Sasu outlined.
the role played by their backgrounds and
The total investment stood at EUR 1,2 million
According to him, the financial success
of the nascent Nuba Group, Nuba Cafe, is set
Secondly, each of the three partners, who
their friendship with the third co-founder and
hold an equal share of the business, brought
shareholder Alin Negulescu, in setting up and
to the table decades of experience in con-
running the business, as well as their ambi-
nected fields. “My background in media
tion to expand in Romania and beyond.
and events and knowledge of these fields
The only local restaurant serving an
helped me a lot. I was always connected to
exotic combo of Asian food with Peruvian
the entertainment market,” said Nanu, who
influences, Nuba has a seating capacity of
has additional experience in the travel sector.
35 tables and 140 covers. From 11pm, diners
Sasu brought his background in finance and
are treated to a program of live concerts and
managing teams of people, while Negulescu
DJ sets, a concept that has proven a hit with
drew on more than a decade of experience in
the Bucharest crowd, say the founders. “We
HoReCa.
started from the idea of having a fine dining
For the future, expansion is the keyword.
venue that later transforms into a club,” said
Alongside plans to self-fund the creation of a
Sasu. “This concept is at the core of our busi-
chain of Nuba cafes nationally, the team aims
ness model and will be maintained across all
to open a location at the Black Sea in 2018,
our locations.”
and to apply for EU funding to expand into
Nuba required an initial investment of
the travel sector by opening a boutique hotel
EUR 300,000, and received another shot
in the mountains. “Soon, the three will start
of EUR 80,000, in reinvested profits. The
to look for foreign partners to expand abroad
uba, one of the most high-profile
summer location, with a double seating
to Monte Carlo and London, two established
newcomers on Bucharest’s res-
capacity, was built from scratch on Herastrau
entertainment markets they expect to enter
taurant scene, is gaining a steady
Lake, in Bucharest’s largest park, after a EUR
within the next five years.”
N
“We want to become a strong group with
following, a little over one year since opening
500,000 investment. Nuba Cafe, set to open
at the end of 2015. Its summertime sidekick,
on Radu Beller Street, will have 20 tables
a large number of locations, in Romania and
Nuba Summervibes, which opened in June
and 120 covers. “We estimated it would cost
abroad,” Nanu concluded.
www.business-review.eu Business Review | April 2017
26 INTERVIEW
A healthy approach: Akasha brings wellness message to local market After 20 years living abroad, three local entrepreneurs decided to set up a family business in Romania, combining the idea of offering a unique retreat experience with that of getting people thinking about their own health and wellness in their daily lives. Irina Raileanu, co-founder and retreat coordinator at Akasha Wellness Retreat, tells Business Review the story behind her business and plans for the future. By Anda Sebesi but we would also have had to start again, living in a different country. Secondly, we felt the toxic and stressful effects that living in cities was having on our health and, once we started practicing a healthier way of living, we realized that, like us, there are many others out there, perhaps in Romania and throughout Europe. We knew there would be a market for this and we wanted to share this in a place that had even more meaning to us, Romania.
What was the vision of your business and what is the story behind Akasha? When we were designing the concept for our business, only one name came to mind, Akasha. It means aether, or space, in Sanskrit. It’s the fifth and most important element, from which all the others (fire, air, earth and water) come. The vision was to offer an intimate space for this balance to develop naturally in Irina Raileanu, on stage at BR’s Awards Gala
each person that comes here. Our mission is not just to offer the retreat experience, but
How did you enter the Romanian business scene and when?
bought an existing successful guesthouse that
also to get people thinking about their own
was running as a boutique hotel and restau-
health and wellness in their daily lives, and
For years, whilst living in London, we had
rant in Pestera. In November last year, we
perhaps be the catalyst of change and forming
the dream of returning to Romania in some
launched Akasha Wellness Retreat, offering it
better habits.
manner. We were not sure at that time if we
as a space for conscious living in the heart of
wanted to start a business here, with the
the Piatra Craiului mountains.
What are the main challenges facing you in your business and how do you solve them?
Why did you decide to launch such a business in Romania?
The main challenges for us are: the difficulty
it. In 2015, we started looking for places we could buy in Romania that would become the
Travelling around the world, we did indeed
mania, the preconception people have about
space where we could live, work and offer a
consider more popular locations such as
what is and isn’t healthy as well as the taboo
truly unique experience for our guests that
Spain, Greece and France that have a history
associated with the practice of yoga in Roma-
is also in line with our personal goals. It took
with retreats of this nature. If we had done it
nia. Our instructors are international and live
us almost a year to find what is now the loca-
in a different country, not only would we have
here in Pestera for three months at a time,
tion for Akasha Wellness Retreat. In 2016 we
been just another retreat amongst hundreds,
bringing with them their own experience of
economy, bureaucracy and politics of Romania at times putting us off even considering
in finding qualified, professional staff in Ro-
www.business-review.eu Business Review | April 2017
INTERVIEW 27 hosted a number of startups with remote teams and we’ve seen that they not only love being together outside the office, but they are learning to communicate more efficiently here as individuals, not just as colleagues. They are creating and being inspired by nature and leaving Akasha with the intention of maintaining a regular yoga practice and being more careful about eating healthily when returning home. Our mission is not just about giving people the retreat experience when they are here; our goal is to help them maintain the retreat habits on an ongoing basis at home, the retreat being just the start of the journey to wellness.
Inside the retreat location in Pestera, Moeciu
Who are your guests? So far our guests have come from abroad and from within Romania; it’s a 50-50 split. We know that outside Romania the idea of going to a retreat is widely accepted and some of our guests go on a few retreats per year. Almost 80 percent of our guests come on their own without a partner, without their friends from home; they meet and make new friendships here as each week, each group becomes like a little family.
What are your plans? The yoga shala
Hot tub with a view
Right now we have Akasha Wellness Retreat version 2.0. In February this year, our spring rotation of instructors and massage therapists
running retreats, yoga styles and skills. Part
hotel that organizes retreats or a spa.
but also educating people about what is good for them, from the food they eat, the way we form meaningful connections, all the way to how to form good habits.
How fierce is the competition in your field of activity and what do you think differentiates you from the crowd?
arrived and so we are focusing on curating the retreat experience for incoming guests
of our work is not only delivering the service,
Recently Akasha presented the Best Start-up award at the 2016 BR Awards Gala to ReFlex, and offered its entire team a retreat. What are the characteristics of your offers for the business, corporate and entrepreneur segment? The most successful startups and venture
together. Every three months here at Akasha there is a new version; we always look to improve what we do, introduce new elements and new activities, as each resident teacher here adds his or her own experience and skill to the experience. Our plan and vision is for Akasha to be-
capital funds know that to produce results is
come a hub for creative and gifted facilitators
In Romania, there aren’t many centers like
not about burning the candle at both ends. A
and instructors in the wellness and healing
ours, intimate dedicated spaces that focus
long-term strategy is about creating the right
arts from all over the world. We want them all
on wellness alone. Of course, there are yoga
environment for your team to thrive.
to come together here and offer curated pro-
retreats organized in Romania and we love
We want to encourage the entrepreneur
grams. In the future, we’d like to focus even
to see that the idea of taking this type of
community in Romania to learn about and
more on the integrative medicine aspect of
holiday is becoming more widely accepted.
apply this balance between work and life
Akasha and how to prevent disease through
Our concept is the main differentiator: here
through startup retreats here at Akasha. A ho-
a more clinical approach and personalization
everything from the decoration of the rooms,
listic approach to corporate wellness includes
of each experience; we’re working on this to
the facilities available, the staff and instruc-
mindfulness activities for teams, yoga and
be launched later this year. Right now, we are
tors, the community feel and the food are all
meditation courses, food that nourishes and
also preparing for spring and our main goal is
elements of wellness and they work together
heals and dedicated workspaces during their
starting to grow our own food, from farm to
to give the retreat experience, not simply a
retreat to work and create. So far, we have
table in less than 50 meters.
www.business-review.eu Business Review | April 2017
28 SOCIAL ENTREPRENEURSHIP
Social businesses need more support from state With 11 million employees in the European Union, the social economy sector in Romania needs a major impetus from the state, as it is one of the mechanisms through which the country can significantly diminish social disparities.
percent of the total workforce employed in social economy structures. In addition, the sector makes a 4 percent contribution to GDP. According to the most recent data, the local social economy’s contribution to the public budget was 4.18 percent of the total taxes and
By Anda Sebesi
contributions paid by employers in 2012, up from about 3 percent in 2011. The data show that the social economy plays a crucial role in the process of transforming vulnerable groups from beneficiaries to contributors to the public budget. “Fortunately, the sector is developing through the cumulated efforts of actors from civil society and by adopting models that have proved to be successful in other countries in Europe. In this regard, I think that young entrepreneurs oriented toward the social sector play a crucial role, too,” says Doris Stroiescu, manager of Atelierul de Panza, a social enterprise of Viitorplus. Despite the social economy expanding in Romania, the sector is still an emerging one when compared to other European countries.
The social facet is not a sufficient argument for a customer to choose one product
“European funds intended to finance social enterprises have supported the development of the sector in Romania, although the major-
coming more interested in giving
W
social objective as its core activity. It rein-
ended,” says Diana Certan, executive director,
back to society, social involve-
vests its profit for further development or in
communication and fundraising at Concordia
ment has become a priority on their agenda
the interest of the community, rather than
Romania.
in recent years. Be it volunteering, charitable
focusing on maximizing profits for sharehold-
activities or corporate social responsibility,
ers or owners. For example, under Romanian
state for social inclusion and social entre-
today’s society is more conscientious toward
social economy law, a social enterprise must
preneurship, says that social enterprises are
the community and environment and to peo-
reinvest 90 percent of its profit and apply the
among the most courageous economic play-
ple in need. However, in a community where
principle of social equity to its employees.
ers. “Besides their goal to compete directly on
local or central authorities are inefficient in
This means that it must ensure equitable
the market, they have a clear assumed objec-
addressing social needs, charitable involve-
payments to its workers. Last but not least, a
tive of improving society. Their organizations
ment, for example, may no longer be enough.
social enterprise is created to solve a critical
take on the additional efforts of employing
While charity on its own is not capable of
social problem in a sustainable manner.
and training the most disadvantaged groups
ith companies and individuals be-
eradicating a social problem, it’s one step
ity of them faced major challenges in mainA social enterprise is a business that has a
At present, there are over 10,000 active
taining their sustainability after the financing
Elsewhere, Oana Toiu, former secretary of
and operate in marginalized areas where
towards improvement and finding a solution
organizations in Romania that aim to have
there is a lack of opportunities,” says Toiu,
for it. In other words, the social sector needs
a social impact through various economic
quoted by www.romaniapozitiva.ro. “They
sustainability, in the same way that traditional
mechanisms. According to data from the Atlas
bring into the market innovative products
businesses do, and creating a social enterprise
of Social Economy, Romania is playing an
that solve social problems which traditional
could be a way of achieving this goal.
increasingly large role in the sector, with 1.7
businesses don’t address.”
www.business-review.eu Business Review | April 2017
Despite recent regulation by the social
SOCIAL ENTREPRENEURSHIP 29
problem too. Plus,
economy law adopted in 2015 and put into
the profit is allotted
practice last year, some forms of social
predominantly to
enterprises have been present in Romania for
solving that prob-
many years, although they were not formally
lem,” she adds.
recognized as such. “It is about the history of the solitary economy in Romania. The cowere located mainly in rural areas respected
SOCIAL ENTERPRISES FACE DIFFERENT CHALLENGES
the principles of the social economy, but were
As Certan of
not labeled as such,” adds Toiu.
Concordia says,
operative structures or benefit societies that
the challenges that
CERTIFICATION BOOSTS THE SECTOR
Romanian social
In a significant step in the local field, social
enterprises face
enterprises can obtain certification as of
vary, depending
the end of October last year. Certified social
on the nature of
enterprises will be able to access European
the business. “The
funds through the Operational Program for
lack of permanent measures to finance social
Raiffeisen, Idea Bank, Carrefour, Garanti
Human Capital (POCU). In addition, they will
enterprises is specific to this sector. These
Bank, Strauss Romania, Antipa Museum, Ion
benefit from increased visibility through the
businesses depend either on private financing
Creanga Theatre and the Official Journal of
united register for social enterprises. This will
or dedicated European funds that involve bu-
Romania are among its customers.
list certified social enterprises and show their
reaucracy and indicators that are difficult to
activity through annual reports. Addition-
achieve.” She emphasizes that the purchasing
PROFIT MARGINS WITH A SOCIAL FLAVOR
ally, insertion social enterprises (businesses
behavior of Romanians is often a big chal-
Compared to a traditional business, a social
that aim to integrate individuals that face
lenge for social enterprises. “Romanians will
one often has low productivity and higher
permanent difficulties in finding a job on the
buy for a cause once. But only if the quality
production costs. “The profit margins of a
labor market) will have the right to use the
and the price are similar to other products
social enterprise are much lower than those
Social Brand, a unique visual that ensures the
they will buy repeatedly, given the general
of similar businesses that don’t include a
recognition of their products and services na-
reluctance in the culture to support social
social component. I can say that, in our case,
tionwide. The first social enterprise certifica-
causes in Romania,” warns Certan.
our profit margins are low, between 10 and 15
tions were awarded in Suceava, Iasi and Galati
The legal framework that regulates the ac-
percent in the most optimistic scenario,” says
tivity of the social economy sector is another
Stroiescu of Viitorplus. According to a study
challenge. Compared with other more devel-
conducted by the Faculty of Business and
TRADITIONAL OR SOCIAL BUSINESS?
oped countries, the Romanian state does not
Economy of WU Austria on 300 social busi-
As pundits say, a social enterprise is not yet
offer enough support to social entrepreneur-
nesses, their average rate of sustainability is
an alternative to a traditional business, as
ial initiatives. Stroiescu takes Atelierul de
65 percent, with the remaining 35 percent of
the sector is in its early stages. But, it can
Panza, a social enterprise she coordinates, as
their costs being covered by subsidies, dona-
be considered a niche in the development
an example. It is a business where at least 30
tions or non-reimbursable funds. “For the
of the local economy. “On one hand, more
percent of the employees are individuals with
few profitable social businesses, their profit
individuals with business experience feel
disabilities. “For example, in Switzerland, the
margin ranges between 3 and 10 percent,”
the need to start something that has a social
state supports such businesses by funding a
says Certan. “As for Concordia Bakery, our
impact. In this case, the social economy is an
significant part of their salary. In Romania,
rate of sustainability was 65 percent in 2016
alternative. On the other hand, as the NGO
the only benefit is that such an employee is
and we intend to increase it to 75 percent in
sector approaches maturity, social businesses
tax exempt. The social enterprise does not
2017.”
represent a solution granting greater financial
benefit from any facility,” says Stroiescu. Ate-
sustainability and reducing dependence on
lierul de Panza is a social enterprise founded
prises – Concordia Bakery, founded five years
financers,” says Certan of Concordia.
in 2009 by ViitorPlus, the Association for
ago, and Agricultura Concordia, a start-up
Durable Development. Its product, textile
project. It has two other projects in the de-
spective, noting that the social aspect brings
shopping bags, supports the environment
velopment phase: a hostel and a social coffee
an additional difficulty for a social enterprise
and the social cause and offers an environ-
shop in Bucharest. The social bakery targets
in reaching its sustainability. “It is easier to lay
mentally-friendly alternative to plastic bags
the horeca, corporate and retail segments and
the foundations of a traditional business than
while employing individuals with disabilities
employs six disadvantaged youngsters each
manage an enterprise that addresses a social
or disadvantaged workers. Catena, Coca-Cola,
year who work as bakers.
counties last year.
Stroiescu of Viitorplus shares the same per-
At present, Concordia has two social enter-
www.business-review.eu Business Review | April 2017
30 TECHNOLOGY
Romania wary of bitcoin and blockchain technology While the use of bitcoin and blockchain technology picks up speed across the Atlantic, Romania is playing it safe, amid calls for caution from across the EU. But the Romanian economy could be missing out on something, pundits say.
dominated by major banks. The move, experts noted, is part of a broader movement to harness the technological concept and transfer it to other sectors. However, in Europe, as in the United States, the playground for other virtual cryptocurrencies such as ethereum, dash and
By Georgeta Gheorghe
monero, bitcoin is facing legal challenges from central authorities. Bolstered by Silicon Valley, the US currently hosts the highest number of cryptocurrency users, the most bitcoin ATMs of every country, as well as the biggest bitcoin trading volumes in the world. That is why it is expected that the States will be the testing ground for crypto-regulation. However, despite the advance of cryptocurrencies, progress is slow. In March, the US Securities and Exchange
F
In 2016 Romanians made payments in bitcoin equivalent to EUR 300,000
Commission rejected a bitcoin-only exchangetraded fund’s bid to list. The move had been
our years ago, when the bitcoin price
a blockchain is a database of ordered records
hailed as a decisive step towards bitcoin
peaked at USD 1,216, it was widely
called blocks, which offers a way for unrelated
becoming mainstream. Explaining its decision
hailed as the next big thing. In 2016,
individuals and companies to simultane-
to dismiss the request put forward by fund
although the price had not managed to regain
ously collect and store information via their
creators Tyler and Cameron Winklevoss, the
much ground, the surge in bitcoin use saw
computers.
SEC said that as it was focusing on a largely
experts claim that the moment it would
Although it is still in the process of devel-
unregulated asset, the fund was at risk of
become mainstream was very near. Last
opment, the technology holds much promise.
fraud, which would make enforcement and
month, bitcoin became more popular than
The latest setback, an internal rift between de-
surveillance difficult to implement. The un-
gold among investors, Forbes wrote, and the
velopers, exchanges and entrepreneurs over
derlying conclusion can only be that currently
cryptocurrency hit a new record high, USD
the opportunity to increase the size of a block
there is a lack of regulation in the world’s
1,365. Despite quickly falling by a fifth follow-
– meaning a batch of transactions that can be
bitcoin markets.
ing speculation over an imminent split due
processed on the network – to more than one-
to opposing views over the size of batches of
megabyte, hit bitcoin prices. Nevertheless, in
transactions that get processed, it bounced
a parallel development, since last year, discus-
VIRTUAL CURRENCIES HIT REGULATORY WALL ACROSS EUROPE
back fairly quickly. The trigger? Speculation
sions have intensified around the possibility
Things are not much different back in Europe,
that a bitcoin exchange-traded fund (EFT)
of exporting blockchain, bitcoin’s underlying
where central bank authorities take a more
could be listed in Europe via an Undertak-
technology, to the traditional financial sector,
cautious stance than US banks and are urging
ing in Collective Investments in Transferable
where it could be used to redesign the ex-
EU regulators to preserve the status quo. In
Securities (UCITS) structure.
change of stock and other financial securities.
October last year, the European Central Bank
DECENTRALIZING PAYMENTS
that Microsoft, JP Morgan Chase and other
EU institutions should not promote the use of
Bitcoin is a decentralized virtual currency
corporate giants were planning to create a
digital currencies. “The reliance of economic
that enables peer-to-peer payments to anyone
new type of computing system based on the
actors on virtual currency units, if substantial-
in the world, without the involvement of
virtual currency network ethereum. The pro-
ly increased in the future, could in principle
third parties and bypassing the regulatory
jected Enterprise Ethereum Alliance, based
affect central banks’ control over the supply
powers of central authorities. All transactions
on the open, un-permissioned blockchain
of money. Thus [EU legislative bodies] should
are made via blockchain technology, where
system, would become a closed ecosystem
not seek in this particular context to promote
In February, The New York Times wrote
(ECB) published a legal opinion saying that
www.business-review.eu Business Review | April 2017
TECHNOLOGY 31
the wider use of virtual currencies,” the ECB
was EUR 400. As for the status of the adop-
said in its official opinion for the European
tion of blockchain technology by the local
Parliament and Council.
banking sector, currently things are moving
Moreover, the financial body asked EU law-
slowly, judging by the statement issued in
ESTIMATED CAPITAL MARKETS SPENDING ON BLOCKCHAIN TECHNOLOGY
makers to make it clear that digital currencies
February by the National Bank of Romania
Year
Amount (USD/mln)*
do not have the legal status of currency or
(BNR).
2017
210
2018
315 400
money and called on legislators to tighten the
The Romanian central bank authority has
proposed new rules in the area. The European
taken a cautious stance towards bitcoin and
2019
Commission’s draft rules require currency ex-
the use of blockchain technology, echoing
Source: Aite Group
change platforms to increase identity checks
in part the attitude of the ECB and reflecting
*estimates
on people exchanging virtual currencies for
lack of appetite.
real ones, in a bid to fight terrorism and pre-
“We, as a central bank, do not believe very
could lie with small actors. He sees oppor-
much in bitcoin, because it is not something
tunity in employing blockchain technology
palpable. Some say it is good to take the
“not only for securing some transactions (i.e.
that bitcoin and other virtual currencies are
blockchain technology and use it, but for
public procurement), but also in developing
the cornerstone of decentralization. However,
what purpose?” asked Ruxandra Avram, BNR
solutions based on smart contracts”. Cur-
while the advent of virtual currency does not
head of department, at the Digital Banking &
rently, he argues, in Romania there are small
come without risks, the technology is gener-
Insurance conference in Bucharest. „Cur-
and medium-sized players working towards
ally regarded as harder to corrupt or hack due
rently, there isn’t any initiative at the level of
including blockchain technology into existing
to its reliance on many separate actors rather
the central bank to adopt these technologies,
flows. “It is an outstanding opportunity for
than a single authority.
because we do not digest them very well” she
small players, even start-ups, to enter this
said, adding, “the ECB has its own reserva-
market, innovate, and change the status quo
tions.”
across many sectors.”
vent criminal activities. Such attitudes are understandable, given
While the use of both of bitcoin and blockchain technology is projected to ultimately become mainstream, Romania has yet to
But Netopia mobilPay founder and
According to Aite Group, capital markets
embrace this global trend. According to data
CEO Antonio Eram believes the Romanian
spending on blockchain technology stood
released in March by Netopia mobilPay, Ro-
economy could benefit directly from block-
at an estimated USD 130 million in 2016 and
manians made payments in bitcoin equivalent
chain technology, while stressing that, as
this figure should climb to USD 400 million
to EUR 300,000 in 2016. The average payment
mass adoption is still far off, the advantage
by 2019.
www.business-review.eu Business Review | April 2017
32 DESIGN
Romanians design for the stars Local fashion designers have recently been dressing some of the world’s most famous women performers. More and more Romanian fashion brands are catching the eye of Hollywood stars and gaining coveted brand ambassadors from all over the world. So how do they do it? By Romanita Oprea
Ioana Ciolacu
I
Andreea Badala, Murmur
Teodora Burz, Styland
n recent years, Romanian designers have
viewed designers agreed there is no one clear
Badala. “We entered the well-known Italian
been eyed by international celebrities
recipe for entering the international market;
shop Luisa via Roma in our second year of
looking for a creative yet impressive de-
the breakthrough is different from one player
activity and also managed to penetrate the
signer piece with which to wow the red carpet
to another, depending on personal strategy.
markets in New York, Tokyo, Beirut, Paris
or take over the stage. Teodora Burz, Maria
For example, the new Styland Crystal Rose
and Lyon. Since then, Murmur has been fea-
Lucia Hohan, Lorena Sarbu, Ingrid Vlasov,
collection was initially launched for the inter-
tured in editorials in renowned publications
Aura Cercel and Dinu Bodiciu are just some of
national market, but recently debuted also on
such as international Vogue, Elle and Paper
the top local names coming to international
the local scene, through a photo campaign,
Magazine and has expanded distribution
notice, and the list goes on. According to
starring actress Flavia Hojda (who starred in
worldwide.”
Unica magazine, the first famous Romanian
the movie Selfie 69).
designer overseas was Doina Levintza, who
“My plan was first to create a great Roma-
And the wave of young Romanian designers making their mark on the international
was invited to New York Fashion Week sev-
nian brand and go international in a second
scene has started to swell. For example,
eral years ago, at the “birth” of the Romanian
stage,” says Teodora Burz, owner of Styland.
Ioana Ciolacu is the only Romanian winner
design industry. She was followed by Catalin
Styland is the latest Romanian designer
of the Designer for Tomorrow award, which
Botezatu, whose collection closed Milan Fash-
brand to impress an international superstar:
she claimed in 2013, when she wasn’t even
ion Week in 2002, right after Versace’s show.
Katy Perry. The singer even appears on the
30 years old. With a master’s degree from the
He went on to have big shows in Cannes,
cover of her recent single, Chained to the
London College of Fashion and a permanent
Monte Carlo, Bali, Venice and Paris, while his
Rhythm, wearing pieces from the latest
presence at Berlin Fashion Week, Ciolacu
design pieces continued to enjoy success in
collection. Photos of the chosen outfit were
managed to impress Stella McCartney with
countries such as Greece, Italy, Indonesia,
shared by the star on all of her social media
her creations, receiving positive reviews
Sri Lanka and Malta. Moreover, while Venera
channels, with her Instagram post alone
in Vogue USA and Vogue Runway. She also
Arapu has been successful in Japan, Razvan
receiving over 1 million likes.
created a capsule collection for Peek & Clop-
Ciobanu has opened stores in Miami, Ireland,
The local and international markets are
penburg and opened her first online shop last year.
Kuwait and Saudi Arabia. Maria Lucia Hohan
important for other Romanian designers as
sells her works in Copenhagen, Oslo, Athens,
well when deciding how to develop their fu-
Singapore, New York and Tokyo. One of the
ture business. For example, Andreea Badala
sonal take on clothing and run a sustainable
best performing brands on the international
of Murmur has participated in international
business. My international customers are
market in recent years is Murmur, by Andreea
tradeshows, opening her door to the interna-
my promotion abroad and I love this organic
Badala, winning over international superstars
tional fashion scene.
word-of-mouth publicity of my designs.
such as Madonna, Beyonce, Lady Gaga and
“From the beginning, I didn’t want to
“I create for real women; I bring my per-
Our main focus this year is to secure several
limit the brand to the local market, but focus
international retail deals. Also, through our
on international markets too. Knowing that
presence at Berlin Fashion Week, we want to
THE SECRET STRATEGY
the tradeshows in Paris would get a lot of
expand in the EU,” said Ciolacu.
Even though many people ask, all BR’s inter-
attention, we showed our pieces there,” says
Britney Spears.
www.business-review.eu Business Review | April 2017
34 DESIGN
STYLAND
The suit is the brand’s signiture outfit
A
Katy Perry on her cover shoot
Styland’s signature pieces include suits for women in non-colors
ccording to Badala, the brand’s international strategy is to
the pieces, a transparent tulle dress resembling a nun’s habit, struck
work with leading stylists on a regular basis, a strategy that
me as so right for Madonna. She liked it so much that she chose to
has so far proved to be a winning one. The first top styl-
wear it throughout her entire world tour,” said Badala.
ist that discovered the brand in a New York store used a Murmur
Recently, Murmur entered the Asian market, and the designer
bodysuit for Beyonce’s music video Pretty Hurts. It got such a good
says that focusing on growth there, while developing the markets
reaction that she continued to use Murmur’s pieces for Britney
that are already successful for the brand, such as the United States,
Spears and Madonna. “Over time, we have developed an ongoing
Russia and Europe, is the right move. “Speaking of celebrities, we re-
relationship with Madonna’s team, who are constantly in touch with
alized that the biggest media coverage and sales happen when very
us. Before her Rebel Heart world tour in 2015, we had a request for a
‘in’ and fresh celebrities, such as Kylie Jenner and Gigi Hadid, wore
Cosmopolitan shoot starring her. We were just developing our Role-
our pieces, so the focus is on such stars,” added Badala.
play Collection, inspired by intimate roleplaying clichés, and one of
www.business-review.eu Business Review | April 2017
DESIGN 35
MURMUR
WHO’S WEARING WHOM MARIA LUCIA HOHAN BECAME FAMOUS AFTER HER CREATIONS WERE BOUGHT AND WORN BY INTERNATIONAL NAMES SUCH AS KATHERINE HEIGL, STACY KEIBLER, MARIA MENOUNOS, JENNIFER HUDSON, EVA LONGORIA, NICOLE KIDMAN, VANESSA HUDGENS, JENNIFER LOPEZ, KELLY OSBOURNE, MARIA SHARAPOVA, TAYLOR SWIFT, MEGAN FOX, DEMI LOVATO AND SELENA GOMEZ.
Twirl Long Dress, Spring-Summer 2017
Fringe Kimono, Spring-Summer 2017
LORENA SARBU WAS BORN IN TIMISOARA, BUT NOW LIVES AND WORKS IN THE USA. HER DRESSES HAVE BEEN WORN BY EVA LONGORIA, NANCY O'DELL, BROOKE ANDERSON, GIULIANA RANCIC AND KRISTEN CONNOLLY.
INGRID VLASOV IS THE CHOICE OF LADY GAGA. Invisible Dress Genie Bodysuit, Signature Collection
Blackcherry Dress, Signature Collection
A
ccording to Badala, the brand’s international strategy is to work with leading stylists on a regular basis, a strategy that has so far proved to be a winning one. The first top stylist that discovered the brand in a New York store used a Mur-
mur bodysuit for Beyonce’s music video Pretty Hurts. It got such a good reaction that she continued to use Murmur’s pieces for Britney Spears and Madonna. “Over time, we have developed an ongoing relationship with Madonna’s team, who are constantly in touch with us. Before her Rebel Heart world tour in 2015, we had a request for a Cosmopolitan shoot starring her. We were just developing our Roleplay Collection, inspired by intimate roleplaying clichés, and one of the pieces, a transparent tulle dress resembling a nun’s habit, struck me as so right for Madonna. She liked it so much that she chose to wear it throughout her entire world tour,” said Badala. Recently, Murmur entered the Asian market, and the designer says that focusing on growth there, while developing the markets that are already successful for the brand, such as the United States, Russia and Europe, is the right move. “Speaking of celebrities, we realized that the biggest media coverage and sales happen when very ‘in’ and fresh celebrities, such as Kylie Jenner and Gigi Hadid, wore our pieces, so the focus is on such stars,” added Badala.
AURA CERCEL, WITH THE EVA CULTURE BRAND, DRESSES THE LIKES OF AMBER HEARD, RIHANNA, JESSICA BIEL, EVA LONGORIA, JESSICA SIMPSON, HILARY DUFF, MENA SUVARI, MILEY CYRUS AND HALLE BERRY, AND HAS BEEN INCLUDED IN PICTORIALS IN TOP FASHION MAGAZINES SUCH AS HARPER'S BAZAAR AND VOGUE.
DINU BODICIU OF TIMISOARA BECAME FAMOUS AFTER LADY GAGA STARTED WEARING HIS CREATIONS.
www.business-review.eu Business Review | April 2017
36 INTERVIEW
OmniPerform embraces neuro-marketing Adrian Enache left The Masterplan Agency, the digital media and performance marketing agency which he co-founded, and launched OmniPerform, which focuses on omni-channel consultancy, processes and algorithms of neuro-marketing and digital campaigns. The initial investment in the technology and agency is estimated at around EUR 100,000. By Romanita Oprea
ABOUT ADRIAN ENACHE OMNIPERFORM With almost ten years of experience in business consultancy, the online channel, omni-channel and e-commerce, SaaS, business development, digital campaigns and software products, Adrian Enache started his career as a SEO specialist and beta tester in February 2009 and in June 2011 became e-commerce optimization specialist at Metro. He continued his career at agencies such as HyperActive, Infinit Solutions, and others.
What drove you to make this change in your career and why now?
interact with these trends some years before
of business, strategy and neuro-marketing
they became buzzwords and to be in contact
analysis and just six months to develop the
Through almost ten years of experience,
with a lot of international markets that had
technology in its first version. Development
three (successful, I can say) entrepreneurial
to evolve faster in order to meet their users’
is already planned for the coming years with
iterations and a lot of corporate experience
expectations.
a large number of integrations and versions. The key part is to find the right team, not
(mainly in digital, media and building omni-
Second, because it is the nature of what
channel ecosystems), I had the opportunity
we do and what we love to do: come up with
investors. And even more: finding the right
to identify a way to build something that
the business strategy, create the ecosystem
partners (from CEOs to neuro-marketing
could positively impact the media and
in a user-centric manner and focus on build-
specialists and psychologists) to confirm that
digital campaigns very rapidly. Therefore,
ing our best digital and media campaigns.
the direction and the approach we are build-
the project to build innovative proprietary
Taking into consideration that many stud-
technology while developing experienced
ies confirm that a vast majority of our deci-
people in advertising could be done only in a
sions are mostly subconscious, we became
fully-aligned environment of technology, strategy, creative and media services. This is what I continue building: a tech-oriented environment that aligns all the specialties needed to deliver
we started applying this in
Do you believe you have any competition on the Romanian market and, if so, who is it and how do you position yourself towards it?
advertising and marketing
I believe there are a lot of good technolo-
extremely passionate about this part of human behavior and
campaigns.
gies locally and all must prove their worth.
great results in digital and omnichannel campaigns, driven by a media and analytics mindset.
How did you chose the area of activity and why omni-channel consultancy, processes and algorithms of neuro-marketing?
ing are right.
Many of them still generate pop-ups, even
How hard was it to find the right investors and how long did it take from the idea to the official launch? In a very ambitious process, I managed to build the initial version in
if 95 percent of users practically shout in all the studies that they hate them. I believe the current tools are still trying continuously to give potential buyers reasons to choose only in a rational way, instead of focusing on what the user feels when interacting with the digital business (an asset like a website, e-commerce, mobile app or any other way). Our vision is bold.
a few months, but with a high workload and
What is your main goal for the business in the first year?
contracted
To become one of the main agencies called
First and
resources.
on when one is starting a digital or media
foremost,
We’re talking
campaign and to build/transform the busi-
because I had
about more
ness into an omni-channel or consumer-
the chance to
than a year
centric one.
www.business-review.eu Business Review | April 2017
38 CITY
I, Daniel Blake FILM REVIEW
By Debbie Stowe
DIRECTOR: Ken Loach STARRING: Dave Johns, Hayley Squires ON AT: Cinema Union, Grand Cinema & More, Happy Cinema, Hollywood Multiplex, Cinema City Cotroceni
D
The unfeeling “computer says no” attitude of most of the officials they encounter leaves Daniel and Katie in dire financial straits,
aniel Blake (Dave Johns) is a
from which they each struggle to escape,
Newcastle woodworker. He’s also
while drawing support from their unlikely
a “would worker”: he would work,
friendship. Like much of director Ken Loach’s
but following a heart attack, he’s been told by
output, I, Daniel Blake is an engaging and
doctors that his ticker can’t take it.
moving story, well-acted and directed. It’s
The fifty-something widower subse-
powerful and passionate in its defense of the
quently finds himself trapped in a faceless,
deserving poor and its condemnation of The
Kafkaesque welfare system: an assessor has
System, particularly the Conservative govern-
deemed him fit for work, so he doesn’t qualify
ment’s tightening of welfare payments. And
for sickness benefits and must look for a
like much of Loach’s output, this is also the
job, which his cardiologist has banned him
problem: his politics, preached with all the
from doing. He could apply for other support
subtlety of a punch in the face, get in the way
online, but can’t use a computer. There’s a
of the story, which is otherwise refreshingly
helpline – for which he can find the number…
naturalistic. The good guys are a bit too good;
on the internet.
the bad guys a bit too bad.
Single mother Katie (Hayley Squires) is
Audiences don’t expect nuance in big-
another victim of the system. A Londoner
budget multiplex trash, but we do in films as
shipped off to the north-east where she can
serious and thoughtful as Loach’s works. His
access social housing for herself and her two
viewers and actors deserve greater even-
children, her benefits are stopped after she
handedness.
Sleepless FILM REVIEW
arrives a few minutes late at the job center.
squad officers Vincent (Jamie Foxx) and Sean (hip-hop star TI) steal a bag of cocaine from some scumbags.
By Debbie Stowe
The duo wangle their way into investigating the case, hoping to bury the evidence, but haven’t counted on sharp Internal Affairs agent Jennifer Bryant (Michelle Monaghan) getting on their tails. She is determined to bring Vegas’s network of dirty cops down! You go, girl! Unsurprisingly, the criminal kingpins for whom the drugs were destined don’t take kindly to being divested of their goods, and snatch Vincent’s son Thomas (Octavius J. Johnson) as leverage to persuade his errant father to return said narcotics. So Vincent
T
here’s nothing like a kidnapped
DIRECTOR: Baran bo Odar STARRING: Jamie Foxx, Michelle Monaghan, Dermot Mulroney, Gabrielle Union, TI ON AT: Glendale Studio, Movieplex Cinema Plaza, Grand Cinema & More, Grand VIP Studios, Happy Cinema, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake, Cinema City VIP ParkLake
daughter to get an action hero’s juices flowing, from Liam Neeson in the
now faces the tough task of extricating his boy from the hands of the kidnappers, before Jennifer busts his ass for corruption. Film characters looking for abducted relatives seem disproportionately to end up in
Taken franchise, to Jack Bauer in TV series 24.
nightclubs, and Vince’s travails take him into
So how refreshing that Baran bo Odar’s police
both a club and a casino – that an escape bid
thriller shakes up the weary stereotype by
from the latter involves a Ferrari should tell
having the bad guys kidnap a son instead.
you what you need to know about Sleepless’s
Not that the movie is brimming with fresh
plausibility. Nonetheless, Foxx and Monaghan
tropes otherwise. It starts out with a high-
help class up the ludicrous and formulaic
octane car chase, interspersed with scene-
proceedings, and there is brio in the depiction
setting Las Vegas skyline shots, in which vice
of the high end of Vegas’s lowlife.
www.business-review.eu Business Review | April 2017
40 EXPAT EYE
Instant confusion: posh coffee shop menu a grind, not a perk This month, BR’s resident expat is bemused by a coffee shop’s language policy and her interaction with state bureaucracy.
BUCHAREST BEATS BRITAIN FOR BUREAUCRACY In this issue of BR, I review the new Ken Loach movie, I, Daniel Blake. It’s about a British man who gets trapped in a bewildering
By Debbie Stowe
L
state bureaucracy. In desperation he paints
ast week, I was in one of downtown
didn’t speak English came in, I asked our
Bucharest’s legion trendy-trendy
waiter. “We’d explain the menu to them,” he
A few days after seeing the film, I had
coffee shops. You’ve probably been
said. This is fair enough in theory, but menu
cause to attend a local government office to
there. I won’t name it, as it’s a super place
translating never really works: by the time
complete some financial formalities. We were
and I don’t wish to appear to criticize it, but
you’re halfway through you’ve forgotten
sent between about five different agencies
rather to point out an intriguing phenom-
most of the earlier options.
until we finally reached the right one – gener-
enon.
While we were there, two older women –
his request on the wall of the job center.
ally hot, crowded rooms with queues of
probably 60-somethings or upwards – came
irritated people and old paper files stacked in
The (male) waiters all had unimpeachable
in, and my language antenna told me they
towers in the public areas.
hipster beards. One customer was sketching.
were probably not English speakers. I was
In the toilet of the correct office, which was
Another was wearing a pork pie hat. There
curious what would happen.
happily less packed than the four wrong ones
This place ticked every fashionable box.
was a dreadlocked cyclist. Someone brought
One nipped outside for a cigarette, while
(the office, that is, not the toilet), a frustrated
in an impeccably groomed pedigree dog.
the other perused the menu at length. When
citizen had, Daniel Blake style, written,
A mobile phone user made mention of the
the smoker returned, they talked for a while,
“Please process our VAT registrations more
weather in Mumbai and a visit to Las Vegas.
then I heard the word “comanda” and they
quickly” on the sign asking users not to put
began to glance round at the waiters. To no
toilet paper in the toilet.
I, youthful thirty-something, felt a decade too old to be there. Needless to say, they un-
avail: a sign at the counter said “Order here”
Loach should set his next bureaucracy-
apologetically didn’t serve decaf coffee.
– but I don’t think they understood it. When
berating film in Romania: Daniel Blake had
we left, they were still at their table, without
it easy.
But what caught my eye in this brave new café world was that the menu on the table was in English. Not in English because a
food or drink. It’s perhaps a bit weird for me – the cus-
staff member had detected my foreignness
tomer whom the lack of a Romanian menu
(not hard to do) and furnished me with the
would least affect – to be bothered by this,
appropriate menu accordingly, but in English
but I was bothered.
because they only have the menu in English. I asked.
I’m not one of those expats who resent the incursion of the modern, Western, capital-
It’s common, when walking round, say,
ist world into Romania, who like things to
the Old Town these days, to see a lot of Eng-
stay backwards and foreign so we can have
lish signs and names. I get that if you want to
a more “authentic” experience here. I love
open a chic place for The Yoof with the theme
that Bucharest now has fancy, contemporary
Sunday Bagels and Coffee, for example, that
cafes – and the coffee here is a lot better than
it would not be very cool to call it Duminică
in much of the UK.
Covrigi și Cafea. I understand that for the
But I dislike the idea of the old Romania –
sake of attracting the aspiring international-
and perhaps older Romanians – being pushed
ists – and the actual foreigners – willing to
out altogether. Sure, telegraph your stylish
pay RON 12 plus for a cappuccino, English
credentials with English. But remember that
branding works well.
it’s not (yet?) the national language.
But not even to have a Romanian translation behind the bar? What would happen if someone who
1
(And if you could also start serving decaf, that would be much appreciated.)
2
www.business-review.eu Business Review | April 2017
41 - ADVERTORIAL -
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It is a cut of beef from the short loin, next to
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seasoned at home for 14-28 days and due to the
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kind of set-up.
transformations in the structure of the meat,
as to understand its properties. This area is
it increases its hydration and water retention
used minimally while the cow is alive, which
Mall, at the second floor, and it stands out
capacity and it improves its sensorial character-
is why it is soft and not too fat, with an in-
among other locations due to the concept of
istics: tenderness, juiciness, flavour.
tense flavour, appreciated by connoisseurs.
The location is situated in Promenada
“open kitchen� that it has adopted. Because
The aging is done in a dry environment,
All these pieces come from a part of
a true kitchen is the business card of any
which means the carcass of the main pieces are
the animal that does not have developed
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preserved hung on hooks, at a temperature level
muscles. For this reason, they are all tender
as close as possible to freezing point, for a period
and they have an incomparable taste.
The concept focuses on the most interesting recipes of Europe, but it also blends with
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For picky customers, Chef Leon prepares sea-
assortments you can choose, which is why it
process, which has an important role in the
food platters, exotic dishes and, the newest
is important to be able to tell the difference
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element that defines the trickSHOT kitchen,
between them and appreciate their unique prop-
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erties, because not all pieces of beef are good for
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www.business-review.eu Business Review | April 2017
42 THEATER
Love takes center stage in Sibiu The Sibiu International Theater Festival is a globally recognized event that promotes excellence in the performing arts. BR talked to the festival’s president, Constantin Chiriac, to find out how love – this year’s theme – will bring together an impressive number of actors, performances and events. By Oana Vasiliu countries present and eight performances. Now, it’s the biggest theater festival in the world, although it may seem a little ambitious to say so, especially compared with Edinburgh and Avignon. However, if we are talking only about performing arts, then we can live up to the title. The other festivals offer Fringe and Off Theater, where anyone can participate, which is an exceptional example and a very democratic formula for an artist to demonstrate their capabilities, whether they are trained or an amateur. However, looking at the big picture, 90 percent of the shows are mediocre, so we decided that no Fringe or Off Theater should be added to the program. Instead, we chose to develop the Sibiu Performing Arts Market, which has developed Photo: Dragos Dumitru
as an important cultural network, facilitating connections between festivals and artists, independent performing arts companies and public institutions. Every year, participants from all over the world, representing various cultural organizations, artistic management agencies, public institutions and independent
How did you select the theme of love in the performing arts?
is happening in the country and around the
companies, meet in Sibiu to establish connec-
world. We’re currently seeing hate, separa-
tions and start possible future partnerships.
The festival started as a concept to make
tion and disunion, which is precisely why we
sense of things in a country which, unfortu-
need love. For these challenges, we should
nately, has a very commonly used phrase, “I
return to what is essential for us as humans,
You often talk about the new public. Who are they?
can handle it/ma descurc”, which I personally
as couples, as part of a community and as a
They are a challenge we have taken on. The
find disturbing. This phrase is deeply rooted
nation. We should remind ourselves what’s
new public consists of those who have ac-
in the history of Romania. I believe that firstly
beautiful, deep, long-lasting in our own bod-
cepted the cultural change we offered with
we should respect each other and then to try
ies, in our soul and in our spirit: it’s love. This
our street shows where miracles happen. We
to implement a long-term vision of our proj-
is why our theme came naturally.
have brought the beauty of theater closer to
ects, like other creative industries all over the world. Indeed, this is what we do. Our festival is anchored in time, as well by as the theme proposed, counteracting what
those people who didn’t have the courage to
What does 24 years of activity say about the Sibiu International Theater Festival?
enter a theater hall. We managed to create this
At the very first festival, there were three
from the region, but worldwide.
new public, which is not only from Sibiu or
www.business-review.eu Business Review | April 2017
You’ve also improved performing arts education significantly. How did this happen? Thanks to the complexity and power of
THEATER 43
SIBIU INTERNATIONAL THEATER FESTIVAL 2016
school has unprecedented credibility; it is the
THEME: BUILDING TRUST
performances sell out, just to name a few examples. Furthermore, there is the doctoral program with exceptional professors who also teach in some of the world’s most famous performing arts universities. When you put it this way, everything sounds different. It’s true that we don’t yet have the infrastructure, but we have amazing content. This is what the new theater to be opened in Sibiu will develop. We have the grounds of a great work of art, from all points of view.
together in Luxembourg, which became ours, return to Luxembourg in July. Additionally, our actors from the German theater will be part of a performance conceived in Luxem-
only school that hasn’t created unemployed graduates and all the tickets for the students’
we put on Metamorphosis, a performance put courtesy of them. Now, Metamorphosis will
the festival, we have been able to help all the other structures of theater. Our theater
this is how well we work together. Back then,
472 EVENTS 67 PERFORMANCE HALLS 2,850 ARTISTS FROM 70 COUNTRIES 67,000 SPECTATORS PER DAY
35,000 TICKETS ON SALE
bourg, based on an Ingmar Bergman text, and following the premiere, it will be given to Sibiu. Nonetheless, during the festival, Sibiu will be the host for Timisoara, Elefsina (Greece) and Novi Sad (Serbia), the three cities chosen as European Cultural Capital for 2021.
Is everything settled for the Sibiu International Theater Festival 2017? Everything is 99.99 percent settled in terms of program and performances. Once again, we have had to wait for a response regarding the Sala Sindicatelor hall, which doesn’t yet have
Is Sibiu celebrating ten years since it was European Cultural Capital?
approval from the Inspectorate for Emer-
Sibiu and Luxembourg are the most impor-
the program better, without taking that hall
gency Situations, but this year we organized
tant cultural models that Europe has had be-
example of development and continuity of
into consideration for the festival. Also, we
cause their collaboration became a common
the concept of European Capital of Culture.
are open for discussions with the property
language for performing arts. The partnership
In fact, over time, the number of mutual proj-
owners to improve the hall so that theater
between the two cities is an outstanding
ects outstripped those organized for 2007;
performances can also benefit more from it.
www.business-review.eu Business Review | April 2017
44 CINEMA
Cannes-do attitude: local films mark golden year at Gopos In March the local film world celebrates its best movies. The Gopo Awards – Romania’s equivalent to the Oscars – included an impressive number of productions that have traveled the world, collecting awards and glowing reviews. BR looks back at what graced the silver screen in 2016. By Oana Vasiliu One of the big achievements for Romanian cinema last year was an impressive presence
GOPO 2017 WINNERS
at the Cannes Film Festival, where the num-
Best movie - Sieranevada, director Cristi Puiu
ber of local productions across all sections
Best director - Cristi Puiu (Sieranevada)
was, remarkably, the third highest of any
Best leading actor - Gheorghe Visu in Dogs
country, after the cinematic epicenters of the US and France. “It was fully 11 years ago that Cristi Puiu’s
Best leading actress - Dana Dogaru in Sieranevada Best script - Sieranevada, director Cristi Puiu Best debut - Dogs, director Bogdan Mirica
Photo: Asociatia pentru Promovarea Filmului Romanesc
The Death of Mr. Lazarescu, about the ways a healthcare system fails a dying man, took the
lis, notes, “2016 was a pretty good year for
Un Certain Regard prize at Cannes, kicking off
Romanian cinematography, both in terms of
the so-called Romanian New Wave. Two years
festivals – Berlin, Cannes, Locarno, Karlovy
later Mungiu won the Palme d’Or for his pe-
Vary – and the number of films (around 20).
riod abortion drama 4 Months, 3 Weeks and 2
We had new films – some bold, some less
Days,” wrote the LA Times last year. That was
satisfactory – launched by some of the most
the launch pad for modern Romanian cinema,
influential directors in different stages of the
paving the way for future productions to be
New Wave (Cristi Puiu, Cristian Mungiu, Radu
recognized and acclaimed by international
Jude, Catalin Mitulescu, Adrian Sitaru, Mar-
critics as complex, interesting and subtle
ian Crisan) and a very promising debut – the
works.
thriller Dogs by Bogdan Mirica.”
Gopo statues await its winners
C
Critics also noted that last year, two local
LOCAL CRITICS’ CORNER
productions convinced the public to come out
risti Puiu’s Sieranevada, Adrian
“Romania had a very good year in 2016 with
in droves to the cinema: Paul Negoescu’s Two
Sitaru’s Ilegitim, Bogdan Mirica’s
films selected and awarded in major festivals
Lottery Tickets and Cristina Iacob’s #Selfie69.
Dogs and Cristian Mungiu’s Gradu-
– it was the best year in Cannes so far. Very
These two movies generated ticket sales of
ation are household names that
good films were released and what is probably
over 100,000, impressive numbers for the
need little introduction to cineastes. All of
more important is that genres are beginning
local scene.
them, along with many others, were in the
to diversify beyond the New Wave path –
race for the Gopo Awards, the only prizes
which for some is already too tired and tire-
selections at festivals, we showed that Ro-
celebrating the Romanian movie scene. The
some,” commented film critic Iulia Blaga. Last
mania can be a successful independent film
nomination phase was followed by voting,
year also saw another major accomplishment
powerhouse. I mean, Two Lottery Tickets
in which 450 active professionals from all
following the approval of several key changes
was made with just a few thousand euros
areas of the local film industry were invited
to the Cinema Law just before the end of the
and was seen by over 130,000 Romanians.
to choose their favorites, through a voting
former government’s mandate in late Novem-
Without talking about quality, Two Lottery
process provided and supervised by the audit
ber, she added. “It is very important that the
Tickets should bring a change in perspective
and consulting company, PwC Romania. The
Emergency Ordinance not be dismantled in
among our directors and producers, but also
eleventh run, which culminated on March
Parliament and that the reform started by the
a change in strategy from the National Center
21 at the Bucharest National Theatre, saw 21
Ministry of Culture in 2016 continues on all
of Cinematography, namely: popular films
feature films, 15 documentaries and 52 short
levels: film funding, National Film Archives’
which already have audiences should be made
films officially enter the nomination race in
restoration, film education etc,” said Blaga.
without the support of the institution,” argued
one of 20 categories.
Ionut Mares, film critic for Ziarul Metropo-
“But in 2016, more than affirmation from
Stefan Dobroiu, senior editor at Cinemagia.
www.business-review.eu Business Review | April 2017
RESTAURANT REVIEW 45
Anyone for brunch?
E
>>> Radisson, Calea Victoriei, 021 311 9000 <<<
very major hotel and several
The cabaret started with a singer warbling
ber. Utterly superb and the House has done
restaurants compete for your
away at a thankfully low decibel rating, fol-
this dish since it first opened. The Radisson
business in the Sunday brunch
lowed by pairs of ballroom dancers whose
chef shames and makes a monkey out of ev-
market. So who is the best? The
female partners were so beautiful that they
ery so-called Chinese bullshit restaurant in
Radisson reigned supreme for 12 years, until
sharpened my appetite for more food – in this
this land, which cannot make this signature
two years ago when the hotel opposite blew
case, fish. There was a ‘three way’ salmon:
Peking beauty. But the Rad did it!
the market away with the most fabulous
steamed, smoked or gravadlax (picked with
But all was not well in paradise. The Rad
brunch ever, making that hotel clearly
dill). There was a salt-baked sea bass which
must up its game with a correct selection of
number one.
was superb, save for the bones. They should
cheese, as the cheeseboard was dismissed
have stuck to the traditional salt-baked cod
as an afterthought with rock hard flavorless
format.
brie and an indiscernible brand of cheap
But sadly that hotel has now changed its brunch format, so although it is still good, it is time to evaluate the market to identify the best. So, proudly step
Still on a fish high, I spied some fresh
blue cheese. They had two weak curries, chicken and lamb, both of
prawns languishing unat-
forward Radisson, and
which begged for a more
tended, so I
intense sauce and
let’s look you over.
were devoid of
The dining
any hot spice
room is huge and the
whatsoever.
House
But worse
wisely
of all was
uses every
the lobster,
millimeter
which had
of space
been previ-
to display
ously frozen, thereby
its wares,
rendering this,
thereby
the most fragrant
ensuring that no competitor can match it in the variety of dishes on offer. But I am
scooped
and exquisite fish in
them up and
the sea, a flavorless hard lump of rubber. They should
went to the pasta station which
looking at quality rather than quantity, and
had a superb boiling cauldron of tomato
ditch it and spend their budget on other
there is plenty of both.
sauce and oregano, which I poured over
seafood.
They have moved with the times to satisfy a changing market by, for example,
my prawns and topped with a mountain of Parmesan.
So off I went to grilled lamb cutlets with asparagus and a slice of one of three pizzas. I was too full for any dessert, which was so
having a sushi station. A vast array of it was
And now a problem. On the way back to
on offer, but I passed on it as sushi bores me
my table, my greed punished me by splash-
plentiful it seemed to disappear over the
rigid. But everybody else loved it, so good
ing a big glob of tomato sauce on my trousers
horizon. I finished off with a coffee from a
luck to them. I am sure it was perfect.
in a very undignified manner. Mercifully a
machine making mochaccino, espresso and
sweet waitress, Ionela, who was not even
cappuccino.
So I jumped to the salad bar and stuck
I was utterly enthralled with my brunch,
myself into a glorious foie gras terrine. I am
serving my table, witnessed my distress and
convinced that the healthy ‘green’ sushi
ran, literally ran to the hotel’s housekeeping
but is it the best in town? I honestly do not
eaters had no idea what foie gras is, so I
division to get me a spray of stain remover.
know as I have to test some other brunches
‘helped’ the House by demolishing copious
My hero!
for comparison, but it was so good it is go-
amounts of it. And to accompany the foie
Off I went to the Peking duck steamed
gras, what better than an endless supply of
pancakes, correctly painted with hoi sin sauce
fresh raw oysters?
and layered with spring onions and cucum-
ing to be damned hard to beat it. Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | April 2017
46 CITY
Cultural calendar
By Oana Vasiliu
the most acclaimed professional choirs in the country. It’s also a symbol of local artistry, having become a national brand, after 50 years of representing Romania in the world. Ticket prices range from RON 50 to RON 350.
Pink Martini concert April 20-21, Sala Palatului Pink Martini return to Bucharest, this time for a double concert with singer Storm Large. Drawing on hits from a 20-year career, the group sings in 22 languages, including well-known Maria Tanase song, Pana cand nu te
Art for the people? exhibition Until April 2, National Museum of Arts
Romanian artists such as Camil
The line-up of the fifth Jazz in
iubeam. Ticket prices range from
Ressu, M.H. Maxy, Ion Bitzan
Church includes some of the
RON 120 to RON 280.
and Iosif Bene to name but a
world’s greatest jazz musi-
few. Bilingual Romanian-English
cians, such as Swiss trumpeter
catalogues are available at the
Franco Ambrosetti, Serbian
museum shop.
pianist Bojan Z., percussionist
Cinepolitica Film Festival Cinema Elvira Popescu, April 20-23
Michele Rabbia, Greek modern
Jazz in Church March 29 – April 2, Lutheran Church
jazz artist Chico Freeman and American multi-instrumentalist Ralph Towner. Junior jazz fans are also catered for, on April 1, from 11.00, at Jazz for Children.
Drawing “inspiration” from the
Tickets cost RON 150 through the
Soviet propaganda machine,
Eventim network.
communist officials used visual arts to reinforce their messages and shape the minds and perceptions of the public. Thematic compositions reflect the life of
Through Cinepolitica’s thoughtfully selected shocking and pow-
Madrigal Choir Extraordinary Easter concert April 9, the Romanian Athenaeum
the working class and showcased
erful films, debates and special events, the festival aims to reveal to audiences the mechanisms and political motivations that affect us all. Its international
the new ideology. Do not miss
Founded in 1963 by conductor
competition includes recent
this opportunity to see works by
Marin Constantin, the Madrigal
feature films from all over the
famous as well as lesser-known
National Chamber Choir is one of
world. Tickets cost RON 15.