REAL ESTATE FINANCING SET TO REMAIN IN CAUTIOUS MODE
6
ROMANIA ‘SHOULD SELL ITSELF ON ITS ATTACHMENT TO EU MARKET’ 10
WHERE ROMANIA TALKS BUSINESS February, 2018 / Volume 22, Issue 1
www.business-review.eu
VALVIS AIMS TO MAKE A GLOBAL SPLASH WITH AQUA CARPATICA
12
SAP ROMANIA’S DATA SCIENTISTS PLAYING INTERNATIONAL GAME
24
Uncertainty reigns as Romania prepares to turn 100
www.business-review.eu Business Review | February 2018
• Editorial •
EDITORIAL 3 REAL ESTATE
Anda Sebesi • Editor-in-Chief •
6 Real estate financing set to remain in cautious mode
COVER STORY
Performance in times of uncertainty With both multinationals and local companies calling for a more predictable business environment, the Romanian authorities unleashed a raft of major fiscal changes at the end of last year. Furthermore, in mid January, the leadership of the Social Democratic Party (PSD) withdrew its political support for PM Mihai Tudose’s team following disagreements with ministers. As a result, Viorica Dancila was nominated as prime minister by the centre-left ruling coalition, PSD-ALDE. If she gets the green light from Parliament she will become Romania’s first female PM. The worrying thing is that it is the second time in a year when the leadership of the governing party has changed the PM, after Tudose replaced Sorin Grindeanu when a motion of no confidence, initiated by the ruling coalition, was passed against his government last summer. The lack of political stability leads to an unpredictable business environment and that makes companies put their
14 Uncertainity reigns as Romania prepares tu turn 100 18 Business environment reels from ‘fiscal revolution’ 21 A glance at the real estate market in 2018 22 SMEs scramble to prepare for GDPR implementation ADVERTISING AND PR 28 Coasting along: Constanta advertising market fragmented and incipient
30 ‘Communications professionals will need to think and behave like social activists
plans on hold until the waters clear. Even worse is that recently, the president of the European Commission, Jean Claude Junker, and the vice-president of the institution, Frans Timmermans, expressed their concern about “the recent developments in Romania”, highlighting the changing of the legal framework, including potential amendments to the penal code that are about to be debated in the Parliament. But probably one of the biggest challenges for Romania this year will be its preparations for taking over the European Union Council presidency for six months, from Austria, starting January 2019. The pressure is on for the authorities to prove that Romania deserves this mandate and therefore they must get to grips with the problems that are currently in the spotlight.
CITY 34 Wave goodbye? Ringing in the new for Romanian film
36 Change of art: local names make their mark
38 Grape expectations: Liliac Winery’s revenue set to grow 10 percent in 2018
40 King Michael’s War 42 Expat eye
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgiana Bendre, Georgeta Gheorghe, Otilia Haraga, Daniela Oancea, 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 MANAGER: Alexandra Rosca, EVENTS MANAGER: Mara Dragoiu, MARKETING: Marius Andronic PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
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www.business-review.eu Business Review | February 2018
4 NEWS
WHO’S NEWS
because “there is a conflict between the party and the
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at georgiana.bendre@business-review.ro
government, but also within the government.” President Klaus Iohannis said that he was giving another chance to the PSD and designating Dancila as PM, as the party proposed the third head of government in a year since coming to power. The new government was set to start work at the end of January, accord-
Laurentiu Lazar will take over as managing partner of Colliers International Romania, from March. Ilinca Paun, the current managing partner, will remain a member of the board. Lazar is senior partner and director of the firm’s valuation and investment departments. He has over 11 years of experience in real estate, in valuation, consultancy and investment. In his new role, Lazar will coordinate the company’s commercial and administrative activity and will engage in developing the internal culture.
Viorica Dancila has been an MEP for more than nine years
Romania to get third PM in a year amid protests
streets on January 20 to call for the scrapping of controversial amendments to the people protested across the
“It seems that I made bad
largest cities in Romania with
choices,” said Liviu Dragnea,
around 70,000 rallying in front
pending the approval of Parlia-
head of the PSD, after his party
of the Parliament building in
ment, after the ruling coali-
deposed two heads of govern-
the capital.
tion opted in mid-January to
ment in one year. Last summer
withdraw its political support
Tudose replaced Sorin Grin-
justice and not corruption,
for Mihai Tudose.
deanu, whose government had
calling for the resignation of
lost the support of the ruling
the government. The changes
decided to end its backing for
coalition. The social-democrats
have to be signed into law by
Tudose, who was accused by
claimed that Grindeanu had been
President Iohannis before com-
the PSD’s leadership of starting
supplanted due to poor results in
ing into force. Calls have been
conflicts with ministers and
government.
made for Iohannis to ask the
avoiding talking about them in party meetings.
page 5
sands of citizens took the
nominated prime minister,
The Social Democratic party
Christina Verchere has been appointed by OMV Petrom as the company’s new CEO, replacing Mariana Gheorghe, who has stepped down. Verchere will assume the position by May 21. She started her career in 1993 and had spent over 20 years at BP, where she held several leadership positions in the UK, the US as well as in Canada. Since 2014 she has been regional president of the Asia Pacific region, based in Jakarta, Indonesia. Verchere studied Economics at the University of Aberdeen.
Meanwhile, tens of thou-
legal system. Around 100,000
By Ovidiu Posirca MEP Viorica Dancila has been
ing to the head of state.
Dragnea said that the PSD top brass voted to oust Tudose
Protesters said they wanted
Venice Commission to carry out a review of the proposals.
P3 communications certifies Vodafone as Best in Test mobile network in Romania By Georgiana Bendre Vodafone Romania has been certified as the Best in Test
and December 2017. Vodafone Romania achieved
mobile network in the country
in tests the highest score for mo-
for the fourth consecutive year.
bile data services and provides
The operator obtained the high-
the Best Web Browsing and You-
est total score for the quality
Tube Video Performance overall.
and performance of its data
“Shortly after the launch of
and voice services, based on
Supernet 4.5G, our network has
measurements of all Romanian
been recognized again as the best
mobile networks taken by the
in the country,” said Murielle
independent auditor P3 com-
Lorilloux, CEO of Vodafone
munications during November
Romania.
Vodafone Romania has invested in the upgrade of its 4G infrastructure
www.business-review.eu Business Review | February 2018
NEWS 5 Overall, 105 transactions were announced in 2017, including those whose value was not formally disclosed. The number of transactions increased yearon-year by 15 percent. Broken down by sector, energy was first, followed by financial services. Sectors such as TMT (technology, media, telecom), industry and healthcare services also saw an increased rate. The biggest deal in 2017 was
Intensified deal-making: The interest for transactions will remain high in 2018
Local M&A market sets 10-year record for deals over EUR 100 million
the acquisition of a 13.6 percent stake in E-Distributie Muntenia and Enel Energie Muntenia by Enel for around EUR 400 million. The stake was taken over from SAPE, the state-owned entity controlling minority share packages in companies, following an arbitration ruling. “We anticipate that M&A
By Georgiana Bendre
Alin Tapalaga has been appointed general director of Porsche Inter Auto Romania, returning to Romania after an international career of seven years within the company. He replaces Peter Copetti. Tapalaga joined Porsche Inter Auto Romania in 1998. At the beginning of 2016, he took over the managing director position of Volkswagen Passenger Cars Malaysia.
activity will remain high in
The Romanian mergers &
overall market reaches EUR 4-4.6
2018, sustained by a favorable
acquisitions (M&A) market re-
billion, a 15 percent growth year-
macroeconomic context where
corded deals of EUR 3.8 billion
on-year. “Romanian M&A activ-
companies, whether national
in 2017, with a record number
ity continued to grow in 2017, but
or foreign, have more funds
of transactions of over EUR 100
more remarkably, the number of
available for investment. We
million, according to Deloitte
transactions reaching EUR 100-
anticipate that consolidation
Romania analysis, based on
500 million reached 15, a record
will continue in the banking
public sources and disclosed
over the last 10 years,” said
and financial services sectors
transactions. Adding undis-
Ioana Filipescu, partner in M&A
and we expect new transac-
closed value transactions, the
consultancy, Deloitte Romania.
tions in TMT,” added Filipescu.
Dana Sava has joined Cushman & Wakefield as senior consultant. She will be responsible for client support in the processes of real estate transactions. The role requires her to maintain constant contact with banks to secure the best financing solutions for clients. Sava has worked in banking for over 15 years, coordinating complex transactions at Raiffeisen Bank. She has a degree in Economic Studies, having graduated from the Faculty of Finance-Banks at the Bucharest University of Economic Studies. Murat Buyukerk has been appointed general director of Arctic. Buyukerk has 28 years of experience within Arcelik group, where he has held leading positions in product management, supply chain and sales. Since 2014 he has been international regional sales director for Arcelik group, coordinating the launch of several product ranges and top technologies on the market. Buyukerk holds a degree in Economics from the Ege University in Izmir.
www.business-review.eu Business Review | February 2018
6 REAL ESTATE
Real estate financing set to remain in cautious mode In a market bucking the trend of growing interest rates, Romania’s commercial real estate sector will continue to attract bank financing, and although lenders are venturing into the sector carefully, players claim the positive economic outlook will fuel new investments. By Ovidiu Posirca Europe. For instance, prime yields for office stood at 7.5 percent, while for industrial they reached 8.5 percent, according to data from Knight Frank. The real estate consultancy said that Bucharest’s office market alone recorded over 170 transactions involving more than 310,000 sqm in 2017, close to the record value in 2016. “We expect the accelerated rhythm of real estate development to be maintained in 2018,” Alina Stancu Birsan, partner at law firm PeliFilip, told BR. She adds that this means lenders will get even more involved in the sector.
BANKS DEEP DIVING ON LOAN ASSESSMENTS Commercial real estate loans as a share of lenders’ total portfolios fell to a nine-year low of 66 percent, according to the National Bank of Romania (BNR). The volume of loans recorded in this sector reached RON 70.5 billion (around EUR 15 billion) at the end of September 2017. Rates of non-performing loans in the real estate sector fell by 7.5 percentage points to 19.3 percent at the end of September 2017 Growth mode: Players say the property market in Romania is among the strongest in the region
“
year-on-year, according to BNR statistics. Furthermore, banks have enhanced their
During the last two years, I can tell you
its commercial presence in Romania, after
assessment capacities, which means that
that the situation is far better. Banks
launching Parklake shopping center in 2016.
developers might have to wait longer to get
are more willing to give money, even to
The project, jointly developed with Caelum
the green light.
development projects. Of course, they prefer
Development, required an investment of EUR
to give money for investment opportunities,”
180 million.
“For instance, we’re seeing more projects in which banks did their own due diligence
Thanos Efthymiopoulos, managing director,
Romania’s real estate market continued to
on the main aspects that might impact them
head of asset management & finance for Ro-
attract investments across the board through-
(urbanism, construction, contracting) rather
mania and Greece at Sonae Sierra, told BR.
out 2017. Yields in Romania have remained
than relying solely on the reports supplied
above the figures in Central and Eastern
by borrowers. Although this might prolong
The company might be looking to expand
www.business-review.eu Business Review | February 2018
8 REAL ESTATE
the transactions, banks prefer this prudent
clout have been able to finance their expan-
from tapping the bond markets, developers
approach, as they are more aware of the
sion by tapping the bond markets.
could also continue to rely on equity financ-
risks of real estate projects,” said Birsan. Real
For instance, real estate investment fund
ing due to the high profitability of real estate projects.
estate developers with a strong track record
Globalworth raised EUR 550 million from a
are more attractive to lenders, suggested the
bond sale in June 2017.The bonds were also
lawyer.
listed on the Bucharest Stock Exchange and
estate sector must take into account the po-
the funding will back new investments. Over-
litical risk, which has grown sharply at local
Geo Margescu, CEO and founder of developer
all, Globalworth raised over EUR 500 million
level in recent years. Romania is set to have a
Forte Partners.
in equity between 2013 and 2016.
third PM in little more than a year, following
Banks’ cautious approach is confirmed by
“As happened in 2016-2017, only sustain-
The company’s portfolio value stood
Planning long-term investments in the real
disagreements between the heads of government and the ruling PSD-ALDE coalition.
able projects, of quality, will receive financ-
at EUR 979.5 million in Romania, its main
ing,” Margescu told BR. His company has an
market, as of June 2017. Most of the income-
office portfolio valued at EUR 200 million,
generating assets are office buildings in
the strongest in the region, “despite the po-
but Forte Partners has also expanded in the
Bucharest.
litical situation,” while investors continue to
residential sector. In December 2017, the
NEPI Rockcastle, whose local property
In Romania, the property market is among
find it “interesting,” said Remon Vos of Czech
developer got a EUR 12 million loan from
portfolio is valued at EUR 1.8 billion, raised
industrial park developer CTP, at the start of
Banca Transilvania for Aviatiei Park, which
EUR 325 million in equity in the autumn of
2018, according to Bloomberg. The developer
will feature 352 apartments and studios in
last year. In Romania, the company owns a
aims to deliver another 236,000 sqm of lo-
four buildings. The overall investment stands
total leasable area of more than 853,000 sqm
gistics space in western Bucharest, alongside
with a strong retail component.
expansions of other projects across Romania.
at EUR 37 million. On the firm’s financing strategy, Margescu said that Forte Partners seeks support from banks, but “we take care to invest enough from our own resources.”
FINANCING OPTIONS FOR REAL ESTATEMeanwhile, the lending costs for commercial real estate might grow this year as the central bank becomes more hawkish on the key interest rate. “Despite improving economic growth, the European Central Bank is expected to keep interest rates on hold at their current record lows until 2019. Government bond yields are likely to edge upwards during 2018, but the margins to property yields should remain attractive. There is the potential for further moderate prime yield compression in select European markets in 2018, but a general stabilization of yields is anticipated by the
Meanwhile, Impact Developer & Con-
Experts at Knight Frank conclude that
year-end. Interest rate rises may start to put
tractor, which has a heavy presence in the
significant amounts of capital continue to
upward pressure on prime yields from 2019,”
residential sector, said in December it was
be allocated to real estate in Europe and
said Knight Frank experts in a report.
looking to raise RON 30 million from a bond
the investment volumes will be helped by
sale. The funds will help the company expand
large-scale platform and portfolio deals. The
the key interest rate from 1.75 percent to 2
its greenfield projects in northern Bucharest
consultancy points out that flexible offices
percent, with analysists expecting the process
and also to kick off new investments in the
are gaining ground rapidly in Western Europe
to continue this year.
Romanian capital.
and this trend is set to continue in the years
In early January, the BNR decided to hike
“We expect the BNR to hike the key rate
House asking prices in Romania gained
to come. In 2017, European commercial property
again at the February 7 meeting. This is likely
9.1 percent in 2017 year-on-year, according
to be accompanied by surplus liquidity condi-
to an analysis of classifieds real estate portal
investment volumes were estimated to beat
tions,” said Ciprian Dascalu, chief economist,
Imobiliare.ro. In the previous year, prices rose
2016’s total of EUR 216 billion. In 2018, values
ING Bank Romania.
12.4 percent.
are expected to be similar to the previous
Nonetheless, developers with regional
The PeliFilip partner suggested that aside
year.
www.business-review.eu Business Review | February 2018
10 INVESTMENTS
Romania ‘should sell itself on its attachment to EU market’ For Joseph Quinlan, an expert in the transatlantic economy and high-profile Wall Street economist/strategist, making the case for investing in Europe has become a full-time job that has taken him to several countries across the EU, to meet with key representatives of the business community. With more than USD 160 billion invested by Americans in the EU in the first three quarters of 2017, Quinlan says strategic economic relations between the EU and US will consolidate going forward. By Ovidiu Posirca in short, “I think technology is a job creator not a job destroyer.” For Romania to attract more investments, he argues that the country should pursue the business mindset of the Irish and talk more about its integration into the EU market. Despite the more protectionist rhetoric coming from the administration of US president Donald Trump, the overall wealth of the EU bloc will continue to drive investments from American companies. The combined GDP of the US and EU totaled roughly 33 percent of global GDP in 2016, well above the combined output of China and India, which stands at 25 percent, writes Quinlan in Staying the course: The case for investing in Europe.
CAN ROMANIA CAPTURE INVESTMENTS AFTER BREXIT? Americans have continued to invest heavily in the EU, with outflows reaching USD 220 billion in 2016. This figure is close to the profits made by US affiliates in Europe in 2016. In the first nine months of 2016, American FDI reached USD 162 billion. The biggest recipients were the Netherlands with USD 42.1 billion, the UK (USD 35.1 billion), Ireland (USD 31.1 billion), Luxembourg (USD 29.7 billion) and Switzerland (USD 15.6 billion), according to The Transatlantic Economy 2017 report coauthored by Quinlan and Daniel S. Hamilton.
cember when he spoke at an event
Q
is still alive and kicking, noting that the single
National Bank of Romania. As the UK is one
organized by AmCham Romania on
digital market could unlock more growth
of the largest receivers of FDI from the US, Ro-
the global economic outlook and how the lo-
in relations between the EU and US. On the
mania might attract a portion of these funds
cal economy fits into the picture.
advent of robots and automation, he says,
as Brexit negotiations continue.
uinlan visited Romania in late De-
In Romania, total US investments exceedFor starters, he believes that globalization
ed EUR 1.3 billion at the end of 2016, says the
www.business-review.eu May 2016 2018 Business Review | February
INVESTMENTS COVER STORY 11 14
“In order for Romania to capture any in-
One of the central questions for the advent
to businesspeople, the country also needs to
vestment from the US, or any US investment
have the human capital, the infrastructure
of the fourth industrial revolution and the
from the UK, you have to address these micro
and the consumers, the expert argued.
seamless presence of technology in our personal and working lives is related to the
“There’s no reason why Romania can’t be
issues, whether it’s the rule of law, transparency, the ease of doing business, competive-
the Eastern European tiger. It comes down to
jobs of the future. Policymakers, economists
ness, the productivity of the labor force, or
your attributes. If Ireland can do it, I don’t see
and businesses are scrambling to gauge the
an increase in the skilled labor pool. That’s
why Romania can’t,” said Quinlan.
impact of the swift implementation of Artificial Intelligence, Automation and Robotics on
Meanwhile, a major trade deal between
key. I think the UK is going to lose investments: companies are leaving, multilateral
the EU and the US, which would also impact
institutions are going to Frankfurt, or Paris, or
Romania, has been put on hold.
labor markets. For his part, Quinlan is optimistic about the future and doesn’t believe that automa-
Negotiations over the Transatlantic Trade
Dublin,” Quinlan told BR in an interview. The economist pointed out that Romania’s
tion will destroy jobs.
and Investment Partnership (TTIP) have
“There will be many jobs in the future in
investor profile is boosted by its geographical
ground to a halt, but Quinlan suggested the
position, which makes it attractive for tour-
deal will move forward at the end of this
physical therapy, software coding, private
ism, transportation, shipping and energy.
decade, although corporations are able to op-
wealth management; scientists will never go
erate even without such a major agreement.
out of fashion. Engineers, builders – we need
“I think long term there are prospects for
people to build stuff virtually and in bricks &
“Look at Ireland, which punches way above its weight when it attracts FDI because it’s English speaking, they’re very focused on
TTIP. It was a very aggressive agenda and
mortar. I would learn how to communicate,
FDI, they have the incentives, the infrastruc-
program, but I think it’s more for the next de-
work in groups, think independently, be
ture in place, and they put a premium on
cade, like 2020. You’ve got elections in the US
creative. Creativity is hugely important, and
educating their talent. They are going after
in 2018, presidential elections in 2020, you’ve
don’t be afraid to fail,” says the economist.
the high end in terms of manufacturing and
got the parliamentary elections of 2019 here.
services. I think Romania should adopt the
I think after those key events you can start
risk-taking is required, alongside the inclu-
mindset of the Irish,” said the expert.
talking, but the good news is that corpora-
sion of more women in the labor market.
In the case of Romania, he says that more
“Get girls into sciences,” said Quinlan,
tions both in the US and EU are becoming
The Irish also market their economic advantages as a bundle, which includes ease
further and further embedded in each market
adding that women who set up businesses
of doing business, availability of labor, af-
so I don’t think we need trade agreements.
face more challenges.
fordable real estate and the country’s fiscal
It would be nice, it would accelerate certain
framework.
liberalizations of markets, but companies are
harder to raise capital. It’s just a bias. A
not waiting for the policymakers,” said the
woman who starts a company has less fund-
expert.
ing available – it’s proven – than males. But
“And then their big selling point is that ‘we are attached to the EU’. Why doesn’t Romania
“Women who start companies find it
these mindsets are changing, slowly but
The US recorded a trade deficit of EUR 115
do the same thing?” asked Quinlan. In recent years, Romania has been trying
surely,” he added.
billion in its relations with the EU in 2016 and
The biggest share of female ICT specialists
to attract new investments by cutting taxes,
Quinlan says the value will narrow due to
and offering fiscal incentives for certain em-
further development in the digital economy
in 2015 was in Romania, according to Euro-
ployees such as IT specialists, while imple-
and the services sector on both sides of the
stat, the statistics office of the EU. The share
menting state aid schemes.
Atlantic.
of women in this sector stood at 27.2 percent,
While lower corporate taxes sound good
US-EU COMPANIES’ PROFITS IN 2016 US affiliates’ profits in Europe
EUR 243 bln
European affiliates’ profits in the US
EUR 115 bln
Source: Staying the Course: The Case of Investing in Europe
EUR
1.34
USD 1 bln
Imports from US
USD 517 mln
Source: Romanian Embassy in the US *at-end June 30, 2017
bln
American FDI stock in Romania at end-2016, according to the National Bank of Romania
ROMANIA-US TRADE* Exports to US
versus the EU average of 16.1 percent.
Skills in high demand for the future
USD
220
bln
total US FDI flows to Europe in 2016, according to The Transatlantic Economy 2017 report
54,400 US companies’ European affiliates’ number of employees in Romania as of 2015, according to The Transatlantic Economy 2017 report
12 INTERVIEW
Valvis aims to make a global splash with Aqua Carpatica Businessman Jean Valvis is best known for two major multinational transactions: the sale of Dorna Apemin to Coca-Cola and the sale of Dorna Lactate to Lactalis. The owner and founder of Aqua Carpatica, Valvis says he is committed to promoting Romania as the land of naturally pure, clean mineral waters and to building the international presence and global dimension of the brand he created in 2010. By Daniela Oancea
www.business-review.eu Business Review | February 2018
ABOUT JEAN VALVIS OWNER, VALVIS GROUP Jean Valvis owns Valvis Group in Romania. He is the president and general manager of Valvis Holding and vice-president of the AOAR. He studied at the National Technical University of Athens, graduating in 1979 with an Architectural Engineering degree. He later attended the University Paris I, Pantheon Sorbonne, getting an advanced graduate diploma in Architectural Aesthetics (DEA), entitled Argument on Space and Architectural Composition.
What should Romania’s priorities be in 2018, as regards the business environment? The answer is very simple: to offer stability in fiscal policy and, in general, political stability. We are not asking for a new fiscal model – we want to finally have a constant fiscal code, so we are not asking for innovation or new models. We’re just waiting for the moment when Romania will have the right political and financial strategy – a stable one. The message is: stop changing the legislation!
Do you have any means to lobby for the interests of entrepreneurs in Romania? I wouldn’t call it lobbying. However, I have been involved in the public space and have been promoting entrepreneurship and the need to create added value based on the creativity of entrepreneurs. In Europe, lobbying is an unregulated activity; I prefer to call it an effort, an effort that Coalitia pentru Dezvoltarea Romaniei (CDR) − which is a representative structure − has initiated. It is a non-formal, non-profit effort that local and foreign investors are making in trying to promote the country’s executive and legislative initiatives. I served as vice-president of the AOAR (the Association of Romanian Businesspeople) and in this capacity I have actively participated Photo: Cristina Nichitus
as one of the first members of the CDR. I was also appointed president of the task force for agriculture in January of this year, and we have already had a meeting with Petre Daea, the minister of agriculture. I am always open to discussing and improving things.
www.business-review.eu Business Review | February November2018 2017
INTERVIEW 13
and we aim to present a new variety of sau-
We continue to increase the diversification
the globe. Are we going to see anything significant happen in this direction in 2018?
of Aqua Carpatica products, increase the dis-
It is a long-term aim and it takes a long effort
consumer will always appreciate something
tribution of these products and export them
to become number one. We will continue to
that has a unique sales proposition, and we
as well – which is an extremely positive and
develop the presence of the brand in three
are confident that the Romanian market is
promising trend. For 2018 we are now bud-
major countries, one of which is Germany.
developing in the same ways as in Western
geting growth, investments and marketing
We are optimistic about differentiating Aqua
countries. We`ve noticed that mid- and
objectives, and we are directing our efforts
Carpatica in Germany and differentiation
high-quality products are starting to achieve
to achieve these goals. We want to assure the
is the key word here. The brand has always
significant quantities in sales, so there is a
Romanian consumers of our efforts to be the
targeted premium, new, modern networks.
clear orientation of the consumer towards
first guardians/controllers of quality for our
We have set our priorities and we will work
high-quality products, high-quality labels.
products.
to bring about results on specific distribution
Expensive premium labels are starting to sell
networks.
more than, let’s say, the affordable ones.
Aqua Carpatica was the number one in
Are you going to expand your operations in Romania or rather restructure them?
market share in the still water category and
There is no need to restructure; expansion
What advice would you give to young entrepreneurs who want to start a business in Romania in 2018?
we achieved double-digit growth; we had a
is also a rule for us. So you are going to see a
They need to build a long relationship with
double-digit growth in sales volume. I am
diversification of products, an increase of the
their brand and develop a passion for it. The
satisfied with the financial results of 2017,
distribution network and the consolidation of
other thing would be to take a measured
because we managed to maintain the expan-
our communication platform.
risk with their business plan. To learn from
What are your own business expectations for 2018?
What were the company’s operational results in 2017?
sion of the brands. There has been continuity in the market success of the Aqua Carpatica brand which carries on building its international presence and global dimension.
You want Aqua Carpatica to become the number one mineral water brand around
vignon blanc, which will pleasantly surprise a lot of wine connoisseurs. The Romanian
difficulties and not to give up immediately
How did your wines do in 2017? What are your ambitions for the wine division in 2018?
when they are confronted with difficulties.
We posted double-digit growth in this cat-
first difficulties – these are the three things to
egory as well; we are happy to see consumers
hold on to for anybody starting a business in
appreciate the continuous increase in quality
Romania in 2018.
A love for their brand, a calculated risk, and perseverance – even after they have met the
14 COVER STORY
UNCERTAINTY REIGNS AS ROMANIA PREPARES TO TURN 100 With Romania celebrating 100 years since unification this year, while preparing to take over the six-month EU Council presidency in January 2019, uncertainty and instability dominate both the economic and political scene. BR considers some of the most significant challenges that Romania will face this year, and outlines likely developments in key sectors. By Anda Sebesi
www.business-review.eu Business Review | February 2018
www.business-review.eu Business Review | February 2018
COVER STORY 15
www.business-review.eu Business Review | February 2018
16 COVER STORY
T
he Romanian economic and political scene was rocked in mid January after the leadership of the Social Democratic Party (PSD) withdrew its political support for PM Mihai
Tudose’s team following disagreements with ministers. As a result, Viorica Dancila was nominated as prime minister by the centre-left ruling coalition, PSD-ALDE, and her appointment was approved by the Romanian president, Klaus Iohannis, following consultations
PRESIDENCIES OF THE EU COUNCIL TO 2020 Bulgaria: Austria: Romania: Finland: Croatia: Germany:
January – June 2018 July – December 2018 January – June 2019 July – December 2019 January – June 2020 July – December 2020
Source: www.consilium.europa.eu
with political parties. If she gets the green light from Parliament she will become Romania’s first female PM. “For us it is important to implement the governing program for
Oradea (Bihor County) will invest RON 10 million in the Centenary Bridge, a project intended to be inaugurated on December 1 2018. It is
Romania, for Romanians, to approach 2018 – the centennial – in
one of 100 projects that the local authority intends to mark 100 years
the right way, but at the same time to prepare to take over the EU
since the Great Unification. Other large cities around the country will
Council presidency starting January 2019,” said Dancila, outlining
also mark the milestone. For example, the Unification Palace in Arad
the priorities of her government. It is the second time in a year when
will be restored, while the authorities in Bucharest will establish a
the leadership of the governing party has changed the PM, after
15,000 sqm green area called Centennial Park.
Tudose replaced Sorin Grindeanu, last summer, when a motion of no confidence, initiated by the ruling coalition, was passed against his
TAKING THE HELM OF THE EU COUNCIL
government.
One of the biggest challenges for Romania this year will be its prepa-
The instability has had an impact on the business community. A
rations for taking over the European Union Council presidency for
questionnaire issued by the Romanian-German Chamber of Com-
six months, starting January 2019. During its mandate, Romania will
merce (AHK Romania) in September last year found that while the
need to act as a neutral broker, being responsible for leading council
current situation of German companies in Romania is good, there is
negotiations regarding EU legislation, ensuring the consistency of
less optimism for the future. The questionnaire asked respondents
the EU agenda and good cooperation between EU members and Eu-
to evaluate their current circumstances and their companies’ situa-
ropean institutions. “Romania will have the role of an honest broker
tion, to give an overview of the main economic risk factors from the
and respectable mediator that tries to find compromises on issues
companies’ point of view.
with which all the other member states will try to align. Given that
German firms are currently faring well in Romania, and short-
at present there are many issues on which members don’t agree, it is
term expectations are positive. However, compared to the same
a very important role, through which a country can reposition itself
questionnaire issued in the fall of 2016, the percentage of those who
within European Union and improve its reputation as a member
expect circumstances to worsen over the medium term has grown
state. The Presidency of the EU Council is also a test for Romania ten
significantly (29 percent in 2017 versus just 8 percent in 2016). Opti-
years from its accession,” Angela Cristea, chief of the Representation
mism falls away after the short term, likely as a result of the political
of the European Commission in Romania, told Freedomhouse.ro.
and economic developments of the previous months.
As president of the EU Council, Romania will have a significant
The political-economic framework is considered to be by far the
opportunity to impose its national vision on strategic debates about
biggest risk to the economy. Over 69 percent of responding compa-
the future of the European project, contribute directly to its consoli-
nies – many more than last year – are unhappy with it. The number
dation and promote some of the issues that the country considers
of respondents who are worried about legal stability has grown
to be important on the European agenda. As pundits say, two things
since the 2016 questionnaire. This comes as Parliament has adopted
will mark Romania’s presidency of the EU Council: taking the posi-
several controversial laws, which hinder the fight against corruption,
tion for the first time and organizing European Parliament elections.
among other issues. The conclusion of the questionnaire is that the government’s
TAKING STOCK: WHAT’S COMING ON THE CAPITAL MARKET...
efforts should focus on increasing the level of trust in the business
Back on the local market, Iancu Guda, head of the Association of
environment. This refers especially to fiscal stability and sustainable
Financial-Banking Analysts in Romania (AAFBR), says that this year
economic measures, as well as continuing the fight against corruption.
MAIN MACROECONOMIC INDICATORS
big event by making significant investments in monuments and
Indicator GDP (EUR bln) Population (mln) GDP per capita (EUR) Unemployment rate (%) Net FDI (% of GDP) Consumer price index (average) USD/RON (average) EUR/RON (average)
infrastructural projects. According to digi24.ro, the municipality of
Source: Quarterly Report, UniCredit Bank, 2017
AN EYE ON ROMANIA’S CENTENARY This year Romania will celebrate 100 years since the Great Unification (Marea Unire) between Transylvania, Basarabia and Bucovina on one hand and Moldavia and Muntenia on the other hand. Local authorities have already announced that they intend to mark this
2018 (estimation) 191.8 19.6 9,797 4.8 2.1 3.4 3.8 4.63
www.business-review.eu Business Review | February 2018
is favourable for companies looking to float shares on the Romanian stock exchange. He adds that consumption is at significant levels, which will encourage investments and boost revenues this year. “From the perspective of financing alternatives, 2018 is favourable for a listing on the stock exchange,” the AAFBR head told journalists in a press conference. Guda added that private consumption will grow by around 5-6 percent this year, below last year’s levels but enough to support investments.
COVER STORY 17
OPINION
Constantin Magdalina, emerging trends & technologies expert
Cryptocurrencies in 2018
According to www.profit.ro, the energy sector is an attractive opportunity for investments because it can offer good instruments, either through the placement of Brent Crude oil futures and options or acquisitions of equity stakes in companies listed on the BSE. Investments in lenders’ equity stakes and state-owned companies could be another promising solution.
…AND IN THE IT SECTOR Looming local political and administrative decisions will cause the IT sector, one of the country’s fastest-growing right now, to shrink in 2018, the Employers’ Association of the Software and Services Industry (ANIS) warned recently. According to ANIS, the upcoming
With some 2,000 cryptocurrencies to choose from, 2018 has started frantically. The unprecedented volatility and high returns of these digital currencies have ushered in a new era in the transaction system. Is this reshaping the transactional system to suit the Internet age? Or is it just another speculative bubble that will burst? The pros and cons of cryptocurrencies are as follows:
fiscal changes severely diminish the local IT industry’s growth opportunities. Specifically, the sector will fall short of the solid 15 percent growth and EUR 4 billion-plus turnover posted in 2017, under a business-as-usual scenario. “Unfortunately, the recent changes to fiscal laws are pushing companies to make internal evaluations, regardless of their size or business model. This suggests that growth will stagnate or even be reversed, under the pressure of recruiting and the spike in labour costs,” ANIS representatives said. The consequences of the fiscal changes were felt as early as 1 January 2018, when over 35,000 em-
TOP 3 PROS: • Direct transfers for instant settlements – Through disintermediation cryptocurrency contracts can be completed now or in the future for just a fraction of the expense and time of the traditional asset transfer. • High-return investments – Percentage yields in the thousands ignite the interest of investors. • Transparency – The open recorded ledger based on blockchain technology makes all exchanges observable by whomever, whenever.
ployees in the sector stood to lose EUR 1 million monthly, due to the new way of taxing wages. Under the new laws, ANIS warns, the efforts of the over 110,000 experts that have led to continuous growth for the sector over the years will have an uncertain future. The lack of tax law predictability and contradictory government measures result in a cautious forecast for the development of the tech industry in 2018, ANIS believes. Moreover, medium- and longterm growth forecasts will also be severely hit. Last but not least, at the end of January, local authorities announced that programmers with average levels of education who attend IT classes at will be exempted from taxes from February 1. Approximately 15,000 programmers will be eligible, in addition to those who are already tax exempt. To benefit from the exemption, individuals have to provide proof of university enrolment. Until now, only university graduates have enjoyed the income tax exemption.
LIMPING LION: INVESTORS TIP THE LEU TO WEAKEN IN 2018 CFA analysts expect the Romanian currency to depreciate versus the Euro over the next 12 months. The CFA has increased Romania’s macroeconomic trust indicator after five consecutive months of falls. The latest update gives 44.1 points to Romania, 0.7 points higher than the previous value. The average estimated value of the Euro for the next six months is 4.6891, with a 12-month average of 4.7329.
TOP 3 CONS: • Excessive volatility – Violent short-term price swings limit cryptocurrencies’ use as a strong vehicle for businesses. • Financing illegal activities – Potential use for money laundering and illicit activities given the transaction cannot be traced. • Artificial inflation of prices – Trading bots can artificially cause price dips and surges, rapidly manipulating the market. Like any instrument, blockchain technology can be used for good or bad. The first to avail themselves of this new technology were cryptocurrencies. As one cryptocurrency founder warned in an interview, virtual coins are “clock bombs”. We’re seeing overmonetization as companies issue a virtual coin when the same tasks can be met by existing blockchains. People are blinded by money obtained quickly and cheaply. Constantin Magdalina has eight years of experience at multinationals, both in Romania and abroad. He has a master’s in Marketing and Business Communication from the Academy of Economic Studies Bucharest. He is certified Lean Six Sigma and ITIL. Chartered Institute of Marketing certifications extended his business expertise and knowledge. In over four years working for a Big 4 company, he initiated and conducted studies analyzing different aspects of the business environment in Romania.
www.business-review.eu Business Review | February 2018
18 COVER STORY
Business environment reels from ‘fiscal revolution’ After the authorities unleashed a raft of major fiscal changes at the end of last year, likened by some pundits to a storm, large companies and smaller business owners alike were left with only a short time to amend their business plans following the transfer of social contributions from employers to employees, the approval of the split VAT system and the reduction of income tax from 16 to 10 percent.
R
By Ovidiu Posirca and beyond.
omania’s fiscal system is
Under the new
also integrat-
rules, bank loans will
ing more European
be included in the
provisions, with the
limitation of deduc-
country already pass-
tions for interest paid
ing a directive aimed
by companies, de-
at reducing tax avoid-
pending on EBITDA.
ance.
The threshold for debt cost deductions
The changes were made on the back of
has been set at EUR
a rapidly expanding
200,000 and anything
economy, with GDP
above this limit will
growth reaching 8.8
be taxed at 10 percent
percent in the third
of the base. Meanwhile, Ro-
quarter of 2017 year-
mania has also signed
on-year.
the Multilateral
“From an economic perspective,
Convention (MLI),
2017 was a success-
which changes the
ful year despite the
network of existing
fiscal instability,” said
treaties by synchro-
Alex Milcev, partner,
nized implementation
leader of fiscal and
of Base Erosion and
legal assistance, at
Profit Shifting (BEPS)
EY Romania, during a
measures, thereby
conference organized
avoiding any bilateral negotiations.
by the professional services firm in mid-January. However, Milcev warned that some of
Arcadie Parfenie, senior manager at EY Romania, said that the
the fiscal measures passed in the last six months did not necessarily
main purpose of the treaty is the avoidance of double taxation, not
help the business environment.
reduced taxation or double non-taxation.
In January, Romania started to implemented four of the five
Meanwhile, multinational groups that also have local operations
regulations in the Anti-Tax Avoidance Directive (ATAD) on the limita-
will have to develop a Country by Country Reporting mechanism.
tion of interest deductibility, as well as rules on foreign-controlled
Companies with consolidated revenue of over EUR 750 million in the
companies, corporate exit tax and general anti-abuse rules.
previous year will have to submit this report to the tax authorities.
EY experts noted that Romania had implemented this directive before the deadlines set out in the directive, which is January 1 2019
The authorities can issue fines of up to RON 50,000 if the report is submitted late or contains wrong or incomplete data. Companies
www.business-review.eu Business Review | February 2018
COVER STORY 19
OPINION Nadia Oanea, Grant Thornton Major Changes in Tax Legislation at the Beginning of 2018 mechanism. This decision should balance the tax incentives available (i.e. a 5% reduction in the
As usual, the beginning of the year brings changes in tax legislation, which companies need to incorporate into strategies and budgets for the new year. The year 2018 begins with a major change in the administration of tax burden related to the salary income, with a relaxation of the legislation regarding the VAT split mechanism, an extension of the application of the micro-enterprise tax regime, new rules regarding the limitation of deductibility for the costs of indebtedness for corporate taxpayers and, last but not the least, with more restrictive rules on cross-border transactions.
same regime. In the chapter of corporate income tax,
corporate income tax due) with the cost of com-
several major changes were introduced in
pliance, setting the ERP systems and implement-
the Tax Code. The first relates to the rules on
ing internal controls.
the deductibility of the cost of debt (interest
Starting with January 1, 2018, the minimum
expense, exchange rate differences, etc.).
wage increased to RON 1,900, while the personal
Starting with 2018, the thin capitalization
income tax rate decreased from 16% to 10%.
rules linking the deductibility of the interest
Dividends remain taxable at 5%.
and net foreign exchange losses with the
The beginning of the year brought the re-
level of the debt to equity ratio are no longer
placement of the old social contribution system
applicable. The new provisions do not permit
for salary income with a system of three social
a deduction of net cost of debt that exceeds
contribution tiers, as follows. The social security
EUR 200,000 plus 10% from a taxable base cal-
contribution to the public pension system, of
culated by reference to the accounting profit
25% from the gross salary, is due by the em-
subject to adjustments. However, the limita-
ployee. In addition, for difficult and, respec-
tion applies only to companies belonging
tively, special working conditions, the employer
to a group, not to independent companies.
must pay a contribution of 4%, respectively 8%
The rule applies also for the interest and net
from the gross salaries. The health insurance
foreign exchange losses carried forward as of
contribution, of 10% from the gross salary, is
December 31, 2017.
due by the employee. The employer must pay
For cross-border transaction, besides
2.25% from the gross salaries as labor insurance
interest limitation rules, the Tax Code also
contribution.
implemented other provisions contained in
For other types of income, such as income
the Anti-Tax Avoidance EU Directive (“ATAD”),
By far, the topics that were most intensely
from independent activities or investment
in respect of Controlled Foreign Company
discussed in the business environment at the
income, the health insurance contribution is due
Rule (“CFC”), exit tax and general anti-abuse
end of last year were the transfer of social
only if the income exceeds 12 monthly wages
rule. The anti-hybrid rules will be imple-
contributions from employer to employee
and it is capped to the level of the contribution
mented by December 31, 2019. Under such
and the possible mandatory implementation
corresponding to the monthly minimum wage.
changes, the cross-border businesses will
of the VAT split payment mechanism, starting
Freelancers must also pay social insurance
continue to face scrutiny in 2018. Last, but
with January 1, 2018.
contribution for the public pension, if their net
not least, we predict that the transfer pricing
At the end of December 2017, the Official
income exceeds the 12 times minimum wage,
audits will keep the trend in numbers and
Gazette published the law amending GO no.
the taxable base being upon the choice of the
level of adjustments, as Romania will start
23/2017 on the VAT split payment mechanism.
taxpayer. The rules for classifying the income as
receiving in 2018 the country by country
The law postpones the mandatory application
dependent or independent in view of taxation
reports exchanged by automatic exchange of
of the mechanism until March 1, 2018 and
are still in place.
information with countries of the ultimate
keeps its application mandatory only for tax-
For small companies, the micro-enterprise
parent entities of the groups to which the
payers that have outstanding VAT liabilities as
tax regime now applies to a total revenue ceiling
Romanian subsidiaries belong to. Hence,
of December 31, 2017 or after January 1, 2018,
of EUR 1,000,000. At the same time, the option for
managing transfer pricing risks and applying
exceeding certain thresholds and which are
applying the corporate income tax regime was
for double tax relief by mutual agreement
not settled with the State Budget within cer-
repealed for micro-enterprises with a share capi-
procedure should become a focus for 2018.
tain time limits. Also, the VAT split mechanism
tal higher than RON 45,000. Also, the regime was
Furthermore, Romanian subsidiaries must
is mandatory for taxpayers that are subject
extended to companies from banking, insurance,
pay attention to compliance obligations
to national law on insolvency and insolvency
reinsurance, capital market, gambling, explo-
in respect of notifying the Romanian tax
prevention procedures.
ration and exploitation of natural resources.
authorities on the identity of the reporting
Companies deriving income from consultancy
entity charged with responsibility for filing
and management services are subject to the
the Country-by-Country reporting.
However, the taxpayers may voluntarily opt for the application of the VAT split
www.business-review.eu Business Review | February 2018
20 COVER STORY
that don’t submit such a report could face a maximum fine of RON
paid by employees will amount to 35 percent of the gross wage,
100,000.
while companies will pay 2.25 percent.
Meanwhile, EU legislators are also working on a taxation system for digital transactions that will redefine the concept of a permanent HQ.
In order to accommodate the move, the gross minimum wage has been hiked to RON 1,900. Those earning an income from independent activities will have to pay social insurance contributions (CAS) calculated on a base at least
AN INSPECTOR CALLS: WHEN MIGHT THE TAXMAN COME KNOCKING?
the same as the gross minimum wage. In the case of healthcare in-
If a company has posted losses for three consecutive years, a red flag
independent activities, associations with companies, investments or
appears and tax inspectors might appear at the HQ, warned Miruna
agricultural activities will be liable for CASS if their combined annual
Enache, partner at EY Romania.
income represents at least 12 monthly gross minimum wages.
“We have seen more questions over expenses from contracts
surance contributions (CASS), people whose income is derived from
Moving to VAT, the authorities decided to make the split VAT
with group companies, management and consultancy fees, and even
system optional after the main business associations warned that
technical matters. We have also seen questions from ANAF inspector
additional red tape would be created if it became mandatory.
teams on technical assistance contracts, even on contracts with nonaffiliated companies, not from the same group,” said Enache.
Under the approved version, split VAT is mandatory only for companies and public institutions that have debts representing VAT and
She added that other controls can be initiated on state aid, the
for entities in insolvency. Large taxpayers have to have VAT debts of
reorganization of firms and the application of fiscal facilities such as
at least RON 15,000 before they would be enrolled automatically in
reinvested profit, and R&D. Tax inspectors want to check the benefi-
the new system.
ciaries of certain facilities. “Going forward, we’ll see more and more the extension of inves-
The government also changed the eligibility criteria for businesses to be defined as microenterprises. Firms reporting a turnover
tigations outside the fiscal area, going towards tax evasion. In tax
of up to EUR 1 million can be included in this category. Until now,
evasion cases, the investigation will not be handled by ANAF, but by
this limit had been set at EUR 500,000. In addition, profit tax for
prosecutors,” said Enache.
these companies has been replaced with a tax on turnover. Experts
The main fiscal changes impacting the business environment this
have warned that the updated tax framework will hit firms that are
year include the shift in the payment of social security contributions
just starting to make investments and are posting losses in the initial
from employers to employees. Under the new rules, contributions
stages.
www.business-review.eu Business Review | February 2018
COVER STORY 21
A glance at the real estate market in 2018 According to a Colliers International study authored by Silviu Pop, head of research at the Bucharest office of the real estate consultancy, the outlook for office, retail and industrial spaces in Romania remains quite rosy, especially for the latter. By Anda Sebesi INVESTMENT SCENE TO STEAL THE SHOW
LABOR MARKET BECOMING QUITE STRETCHED
After 2017’s investment volumes of
The extremely competitive labor mar-
just over EUR 0.9 billion, the potential
ket could limit companies’ abilities to
pipeline for the office segment alone
expand, both in Bucharest and in other
could be larger than this level. Though
parts of the country (thereby limiting
some deals may get delayed for next
office market activity – leasing and new
year, we expect to see overall market
deliveries), though a potential buffer
turnover move well above EUR 1 bil-
could come from external migrants
lion, with both currently active players
returning to their native country.
and new entrants to drive up demand. Among the arguments supporting
BALANCED BUCHAREST RETAIL SCENE, AMPLE ROOM FOR SMALLER
the real estate investment scene are: attractive yield spreads versus neighboring CEE peers, good macro
SCHEMES NATIONWIDE
performance and a strong appetite from banks to back deals.
No new large projects have been announced for Bucharest in the upcoming years, just some extensions. That said, the consumption-
MIGRATION BECOMING EVER MORE RELEVANT
driven growth has improved household spending appetite through-
Internal migration patterns are already suggesting a growing prefer-
out the country, so investments will continue to focus on improving
ence for Romania’s major “magnet cities” – Cluj-Napoca, Timisoara
the nationwide coverage of modern retail, including via medium to
and Iasi – at Bucharest’s expense, with surveys further supporting
smaller formats in the less populated cities.
this. With both labor and living costs lower outside the capital, companies might seek to expand/establish offices outside Bucharest;
ONLINE RETAIL, NO IMMEDIATE THREAT FOR BRICK AND MORTAR
such patterns would also boost other segments, especially retail.
Shopping centers are still set to deliver solid results for tenants, as Romanians have a higher predisposition than regional peers to
INDUSTRIAL SEGMENT TO CONTINUE DELIVERING VERY STRONG RESULTS
actually look at a certain product before purchasing it. Still, in order
Despite 2017’s record deliveries of storage spaces (around half a
destinations to spend one’s free time. This means more space for the
million sqm), the vacancy rate remained at an all-time low of close
food court and other services like cinemas or children’s playgrounds
to 5 percent nationwide and 2 percent near Bucharest. We view the
(meaning entertainment spaces of at least 20 percent of the total
strong tenant demand as fundamentally sound given the boost in
GLA). A smaller per capita retail stock than in neighboring CEE coun-
e-commerce and room to catch up to CEE peers. Vacancy could climb
tries could also act as a buffer for brick and mortar versus online
a bit amid potentially higher speculative developments and some
sales. There’s minimal risk in Romania for a “retail apocalypse.”
to improve footfall, malls will need to cement their status as actual
larger tenants moving to self-developed facilities. Meanwhile, big land banks indicate that deliveries could continue to be elevated in 2018 (similar to 2017’s pace, if not higher).
RESIDENTIAL SEGMENT TO REMAIN THE ALL-STAR DRIVER FOR LAND DEMAND Given the higher wages and elevated intentions to purchase homes,
BUCHAREST OFFICE MARKET TO FOCUS ON NEW HOTSPOTS
residential projects are still likely to remain the key drivers for land,
Deliveries look set to accelerate quite a bit in 2018, after disappoint-
though at the time of writing, it is still too early to judge the impact
ing in 2017. Amid an expected slight slowdown in terms of employ-
of the start of a new monetary policy tightening cycle. New office
ment growth, vacancy is likely to increase slightly. The new hotspots
projects will likely draw demand for residential projects in neigh-
(Center West, Piata Presei/Expozitiei) can likely be absorbed organi-
boring areas. Since 2018 is likely to see a large number of housing
cally to a large extent. However developers are becoming much more
units hit the market, players might become more cautious and new
cautious, with the pipeline for 2018 already one third lower than we
developments could deliver smaller projects, albeit in prime loca-
would have thought 2-3 quarters ago.
tions when possible.
www.business-review.eu Business Review | February 2018
22 COVER STORY
SMEs scramble to prepare for GDPR implementation As the European Union gets ready to enhance data protection for all citizens under the General Data Protection Regulation (GDPR), small and medium-sized firms in Romania are still struggling to comply with the new rules that will come into force on May 25.
F
By Ovidiu Posirca
irms processing person-
Ionescu, partner and head of
al data on a large scale
data protection at law firm
for business purposes
NNDKP, told BR.
will feel the biggest impact,
Furthermore, the new rules
whether they are active in
will also have a direct impact
banking and financial services,
on firms’ infrastructure, as all
telecom, retail or pharma. The
applications, databases and
public sector will also have to
related systems need to work
have its systems in place by the
in the new framework, added
end of this spring.
the lawyer.
“Companies should remem-
For instance, data breach
ber: personal data belongs to
notifications will become man-
individuals and they (may)
datory in all member states,
have lent it to the company for
and must take place within 72
business purposes. Just like any
hours of the breach being dis-
loan, they can revoke that right
covered. Individuals will also
at any time,” Robert Stoicescu,
have the right to ask for their
manager, risk assurance solu-
data to be erased.
tions at PwC Romania, the professional services firm, told BR. GDPR compliance will mean that companies have to change privacy notices, and amend agreements with individuals and service providers, which will also
“In Romania, we can say that data privacy has not yet been the biggest concern of companies’ management boards. Currently the mindset for data privacy is in its early stages,” said Stoicescu of PwC Romania.
require new investments in technology. “The new concepts introduced by the GDPR (e.g.,
WHAT SHOULD COMPANIES KNOW? Firms facing delays in up-
privacy by design, privacy by
grading their data infrastruc-
default, data portability, data
ture to comply with the new
protection impact assessment,
rules risk paying hefty fines
data protection officer, record
which could even undermine
keeping obligations) will have
their business footing and drag
a significant impact as they
them into costly lawsuits. And
affect all internal processes and
the challenge is that market
related timing. This is also seen
incumbents still have fairly
in companies’ decision-making
low awareness of the GDPR,
and procurement stages, which
although it preserves core ele-
may be prolonged as a result
ments from the Data Protec-
of the need to include express
tion Directive 95/46/EC, says
data privacy assessment steps
Andrei Georgescu, partner at
in the overall process,” Roxana
law firm Suciu Popa.
www.business-review.eu Business Review | February 2018
“The supervisory authorities enjoy fairly extensive discretion
COVER STORY 23 implement the changes brought about by the new rules. The big-
to apply one or more measures, from issuing a warning or impos-
gest challenge is for small and medium companies that need to be
ing a temporary or definitive ban on processing personal data, up
aware of the data sets they collect and process, which they have to
to imposing fines of as much as EUR 20 million or 4 percent of the
protect,” Valerica Dragomir, executive director of the Employers’ As-
total worldwide turnover, depending on the circumstances of each
sociation of the Software and Services Industry (ANIS), told BR.
individual case, or even both,” Georgescu told BR. In contrast, fines
There might be additional challenges for technology companies,
under current Romanian legislation do not exceed around EUR
as suppliers of solutions for third parties, as they have to create sys-
22,000.
tems capable of solving fast any requirement under the GDPR.
Some larger companies might even have to hire Data Protection
“Against this backdrop, the concepts of ‘privacy by design’ and
Officers (DPO), who are experts in their field and who will report
‘privacy by default’ become extremely important, because they are
directly to top management.
needed for the construction of processes and applications to respect
Although the average costs of Romanian companies meeting the
GDPR principles right from the start,” said Dragomir.
rules resulting from the GDPR haven’t yet been crunched, at international level the investment requirements have been calculated. For instance, members of the Fortune 500 will spend a combined USD 7.8 billion to avoid falling foul of Brussels’ GDPR, according to estimates compiled by the International Association of Privacy Professionals (IAPP) and EY. This amounts to an average of almost USD 16 million each, says the Financial Times. Meanwhile, SMEs in Romania, which create most of the country’s jobs, do not have access to any measures or programs for information and advice regarding the GDPR, according to the National Council of SMEs in Romania (CNIPMMR). The organization says that SMEs will have to spend more, be it on staff or legal advice, to make sure they comply with the law. “Our expectation is that large firms or those processing large amounts of personal data will be more aware and more prepared to
EUR
20
million
the fine imposed on a company that fails to meet GDPR standards
72
hours
the maximum duration in which a data breach has to be reported
www.business-review.eu Business Review | February 2018
24 TECHNOLOGY
SAP Romania’s data scientists and machine learning wizards playing global game From its office in Bucharest, SAP Romania’s 12-strong team has been working on innovative projects for global clients since 2010 and is seeking to grow. Always connected to and performing on the global markets, they relish the opportunity to do so from their home country, and call on Romanian businesses and public stakeholders to continue to embrace innovation. By Georgeta Gheorghe leagues are project leaders and make their contribution to sales, by identifying opportunities and helping generate new projects. The juniors and the developers deliver the projects, and after a few years they will be ready to represent the team in dealing with the clients,” says Alexandru Biticiu, principal data scientist.
SOFT SKILLS ARE KEY Combining hard data with soft skills is crucial when having to advance highly innovative solutions in an emerging sector. That is why, the common denominator among team members, SAP Romania representatives agree, is a combination of soft and communication skills. The team is involved end to end in their projects, from the introductory workshops to the post delivery phase, and Alexandru Biticiu, SAP Romania
S
this, Marcu says, is a very important aspect of their activity. “It is a new field, both in Romania, and at a global level. That is why
AP Romania’s data science and ma-
include pure mathematics, informatics,
we meet with the clients in all phases of
chine learning team develops highly
cybernetics, electronics and computer sci-
the project. Our colleagues from the sales
customized software solutions that ad-
ence and their activity is built around three
department identify the opportunity to ap-
dress specific business needs that are not met
cornerstone fields: data science, mathemat-
ply machine learning to customer needs but
completely by the firm’s current standard-
ics and programming. “Each team member
it is us who present the solutions and the
ized offer of software solutions. It does so
brings to the table their own expertise. There
technology in order to persuade the client to
by executing the mathematical modeling of
are people with a strong background in pro-
explore our solutions. We are conducting in-
customers’ needs and developing algorithms
gramming, while others have it in mathemat-
novative projects, so if the person who signs
and applications that address them. “What
ics or economics. Team members are grouped
the contract does not know the current limits
we do is focus on mathematical algorithms
and matched with a project according to
of the technology available, there can be dis-
in order to produce software solutions,”
their abilities, and they rotate. This is how
crepancies between what is possible and the
says team leader Viorel Marcu, head of data
they fuel their motivation. The end goal is to
expectations,” he notes. “Our solutions lead
science and machine learning. “The rest of
equalize their competencies, so those who
to strategic decisions for our clients’ busi-
the solution, aspects connected to front-end
are experts in mathematics will want to learn
nesses; therefore their entire team that will
programming, database and more, is done in
to do more programming,” Marcu explains.
implement and work with our solutions must
collaboration with SAP.” The average age of team members is 33, and a quarter are women. Their backgrounds
“We have team members with different
be on board. That goes for us too; we need to
levels of experience. We have both juniors
get involved from the beginning and until the
and seniors, and developers. Our senior col-
post delivery phase,” Biticiu adds.
www.business-review.eu Business Review | February May 2016 2018
COVER TECHNOLOGY STORY 25 14
SAP SALES INSIGHTS FOR RETAIL
The idea to set up SAP’s data science and ma-
The Romanian team is one of three within
chine learning team in Romania came from
SAP, with the other two being located at the
a Germany-based executive, whose former
company’s Waldorf headquarters in Germany
Transylvanian Saxon colleagues, top of the
and Scottsdale, Arizona. While the sizes are
class in math, had left a lasting impression.
comparable, what sets it apart is its global
That is how Bucharest made the shortlist,
outreach, compared to the other two, which
alongside two other locations in India and
focus primarily on their local markets. Solu-
Brazil. In the end, the Romanian capital won
tions developed in Bucharest answer the
due to the unbeatable advantage of sharing
business needs of clients in various countries
the same time zone and a greater cultural
around the world, active on markets with
affinity with Germany, where the firm’s head-
very diverse characteristics, serving unique
quarters are located. But SAP’s unexpected
cultures. Each new project on a new market
Romanian connection does not end here.
is a challenge and brings with it an immer-
Hasso Plattner, co-founder of the software
sion into new legal, social and organizational
company, comes from a family of Saxons who
systems, SAP Romania representatives say.
left Sibiu and settled in Berlin. Despite working mainly for global mar-
And sometimes, one highly customized such solution will answer a need that comes
kets, one local challenge they face now is
up on markets across the globe. SAP Sales
the hiring process. As the selection process
Insights for Retail is one such product, which,
often involves contacting Romanian profes-
after being fully developed in Bucharest,
sionals living and working abroad, “we find it
entered SAP’s standard solutions range.
difficult to persuade top experts in their field
Recently presented at the NRF 2018 Retail’s
to come to Bucharest, given the fiscal changes
Big Show&Expo in New York, the world’s top
Viorel Marcu, SAP Romania
retail conference, it has been implemented The way SAP representatives describe the processes. In developing their customized
Marcu complains, adding that he has had to freeze the selection process until April, when
from Mexico to New Zealand. start of the process is common to many such
made recently, which were quite sudden,”
accessories, because they were buying them
things will become clearer, risking losing the
for children,” Biticiu explains.
trust of a US-based prospective team member
For another feature, the team created
over the fiscal uncertainties affecting the
solutions, the team looks for insights in the
specific algorithms that measured the ef-
vast amounts of data gathered and provided
ficiency of a promotion. “When a retailer was
by clients. “We work with very simple data.
running a promotion it was difficult for them
would love to do more innovative projects
But the volume is impressive and we can ac-
to see exactly how many extra clients it got.
in Romania. Local businesses often ask us to
cess it at high speeds. Starting from this huge
In addition, there were hidden effects that
replicate the solutions we have created for
amount of information we can develop a
could only be seen by looking at the data. For
players elsewhere, forgetting that companies
wide range of applications. We put order into
instance, when a supermarket has a promo-
everywhere want to protect their competi-
chaos and help clients understand why things
tion for detergent: the client will buy more,
tive advantage by not disclosing the solutions
happen the way they do and predict how they
but, if that person comes to the store mainly
they use.”
will evolve, Biticiu says.”
for that, they will stock up and not return for
Working on such innovative projects is a
Romanian IT sector. SAP representatives said, “As a team, we
a long time. However, if the customer buys a
great opportunity, especially for young gradu-
SAP Sales Insights for Retail, the information
large quantity of detergent, the money is paid
ates in mathematics, IT and similar. “Young
used was that displayed on the receipt every
at once today and not next month. There are
people in Romania today have the chance
shopper gets after completing payment. It
a lot of variables to take into account and they
to do an internship at Google, Instagram or
includes no more than the items purchased,
can be translated into algorithms,” Biticiu
Bloomberg. They have so many more op-
quantity, time and date and the price paid.
says. “The marketing director, the buyer, may
tions,” says Marcu, who recalls that, unlike
From billion of transactions, the insights
have 20 years of experience and they work in-
his younger colleagues, when he started out,
obtained included frequent pairings of items
dependently with the purpose of maximizing
he would browse not online job platforms,
that were most sold together. “The retailer
sales. What we do is show the truth through
but the worn out classified ads pages of local
wanted to know what makes bike buyers also
data. And we come and tell them something
newspaper Romania Libera. “They have a
purchase accessories for protection, such as
new.”
great chance to something innovative at such
For the project that led to the creation of
an advanced level, and be part of solutions
helmets and bike knee pads. What we saw was that the smaller the bike wheel, the likelier it was for shoppers to purchase protection
HIRING CHALLENGES AND STRIVING FOR INNOVATION IN TECHNOLOGY
that shape an emerging industry” Marcu concludes.
www.business-review.eu Business Review | February 2018
26 ONLINE
Online bookstore Libris.ro looks forward to next chapter In 2017 Romania’s online market grew to EUR 2.8 billion, up by 40 percent year-on-year, one of the biggest increases among EU member states. According to data released by GPeC, Romanians spent an average of EUR 7.7 every day on online shopping, with books the third most popular product category. BR spoke to Laura Teposu, director of business development at Libris.ro, about what it takes to keep a firm among the top players in the competitive online book market.
ABOUT LAURA TEPOSU Business Development Director, libris.ro she set up the St. O. Iosif bookstore in Brasov in 1991 together with two partners. Since 2009 she has been closely involved in the company’s online activity, helping Libris.ro grow from a family business to one of the top players on the Romanian online book market.
By Georgeta Gheorghe
What was the local online book market worth in 2017? Did it grow compared to the year before? What do you forecast for this year?
bookshop in Brasov; however, 95 percent of
sales increase year by year. Data obtained
sales are done via our website. I expect the
in January 2018 showed that sales were 40
online book market to increase in 2018, by
percent up on January 2017.
The Romanian book market is estimated at
my view, the market will stagnate; therefore I
around EUR 90-100 million, and online books
expect growth of maximum 5 percent.
Are you planning any campaigns aimed at boosting your online presence and sales in 2018?
Libris.ro follow the global trend that is seeing
What was your turnover in 2017?
We regularly have one-day promotions on
online sales gain ground over sales in book-
In 2017 Libris.ro posted a EUR 6.7 million
Libris.ro. Plus, one of our ongoing campaigns
stores. We also noticed a sales increase in our
turnover, continuing a trend that has seen
is ‘Author of the Month,’ which is designed to
around 15-20 percent. However, overall, in
sales stand at around EUR 22 million. Sales of
www.business-review.eu Business Review | February May 2016 2018
COVERONLINE STORY 27 14
bring contemporary Romanian authors closer to the public by means of interviews and promotions of their works. We believe there should be more communication between readers and writers. At the same time, we believe it is important for readers to interact with books, in order to fall in love with reading. According to the most recent data, only 2.9 percent of Romanians read at least 10 books per year, and 30 percent read only one book a year. We help readers meet their favorite writers and discover new ones at the book fair we organize every year in Brasov. Currently in its 15the edition, in 2018 it will take place in April.
Libris.ro invests EUR 3 million in a new warehouse
In order to highlight the benefits of reading, in 2018 we are running the campaign ‘Respect Yourself,’ whose message is – gift
Lewis, for instance, alongside those of Mihail
able, or because it is cheaper, you come back.
yourself the time to read. It kicked off in
Sadoveanu and Liviu Rebreanu, we can
Some 30 percent of our clients are based in
January and will continue throughout the
encourage them to read more than the books
Bucharest. The conversion rate is influenced
year. For the campaign, we asked well-known
included on the ‘compulsory reading’ list and
by the seasons, but it is above average. Given
people who read often to share their passion
enjoy reading more.
the high return rate, the conversion rate for a
for reading and talk about the way reading has enriched them, in all meanings of
returning customer is five times bigger than that of first-time customers. Also, for mature
the word. Also, as part of the campaign, we
How much will you invest in growing your business in 2018?
will distribute 90,000 bookmarks with the
The total investment in the Respect Yourself
double that for those aged 18-24. The con-
message that setting aside time for reading
campaign stands at EUR 100,000. But most
version rate on mobile is lower than that of
is a form of self respect. In more developed
of the investment we have planned for 2018,
clients visiting the site from desktops, but it is
countries, people read more, and this is not
namely EUR 3 million, will go on the build-
growing. The average order stands at around
necessarily correlated with purchasing power.
ing of a warehouse in Brasov. The warehouse
RON 80-100.
If we don’t read, our wealth will not increase
will occupy over 5,000 sqm, be 200 percent
either, because the level of education is cor-
bigger than the current one and will hold 3
related with a country’s development.
million books as well as products from other
Are you planning any releases aimed at boosting your online presence?
ranges we are preparing to introduce, such as
In 2018, we are planning to introduce a
ects in two schools, one in the countryside
games, toys, music and gifts. It is expected
rating system for books so that clients can
and one in a city. We will help pupils in the
to optimize the working processes, increase
share their opinions of the books they have
schools build their own library, according to
productivity and the speed of order process-
purchased and read. Also, we want to attract
their interests, by including titles they find
ing and allow us to support the annual growth
more visits via our mobile version, so we will
interesting and attractive. The concept we
rhythm of orders, estimated at 20-30 percent.
prioritize that. Everything is done in house
want to promote is ‘Reading in 3,’ where the
Currently, our processing capacity is 3,500
by our IT department, which employs three
teacher and the parent become an active
orders daily.
people.
families who encourage their kids to read, but
What is the profile of your customers?
How much do you expect to grow in 2018?
the way they learn is by doing what the adults
Most of our customers, namely 70 percent,
We’re aiming for a 30 percent increase. Apart
are doing. That is why we are encouraging
are women. Out of them, 60 percent are aged
from the growth coming from promotions,
parents to read with their children, by creat-
25-40 and have secondary education level or
investments aimed at enhancing the online
ing a library where both kids and adults can
are highly educated. A lot of those who buy
experience and the building of the ware-
borrow books.
their books on Libris.ro are repeat custom-
house, we are also counting on a big increase
ers, namely 65 percent. A frequent reader, we
of sales of smart games for children. In 2017,
that young readers should get more access
believe, prefers an online store to a mall. Also,
products in this range saw a 92 percent in-
to contemporary authors. We do have our
our customers know what they want; they
crease; therefore we will focus on that. Also,
classics, which we love. But we also believe
are not impulse buyers. When you receive
we will introduce more products associated
that by allowing young people to get to know
exactly what you want, you come back. When
with books, such as bookmarks, lamps, tea
the works of Roald Dahl, J.K Rowling or C.S
you buy a book online because it is comfort-
and notebooks.
In addition, we will launch pilot proj-
buyers aged over 25, the conversion rate is
part of the reading process. There are a lot of
Moreover, we want to promote the idea
www.business-review.eu Business Review | February 2018
28 ADVERTISING
Coasting along: Constanta advertising market fragmented and incipient Don’t let the beautiful scenery fool you. As peaceful and relaxed as it might seem at first glance, Constanta is a very dynamic market when it comes to advertising. Still with a long road ahead until it catches up with other Romanian cities, players say it’s a market full of entrepreneurial spirit and passion to make it big.
ents see you and perceive you on the market as you want them to. Moreover, a company shouldn’t expect to invest a little, one time, and to have success immediately,” said Tircea. But the problem lies also with the services suppliers. Working with “the guy from the third floor” or a “garage company” will generally not give you the right results, especially
By Romanita Oprea
if you want quality. And, unfortunately, according to the Global Advertising representatives, sometimes the same applies with big full-service agencies that don’t have the specialized people for online. “Let’s not forget that in 2016, companies in Romania invested around EUR 41 million in online promotion (Facebook, Google ad words, etc), only 6-7 percent of which came from Constanta. And in 2014 the market was around EUR 25 million. The growth is very low, in our opinion. The market is advancing pretty slowly,” they commented. According to Cristiana Dima, managing partner at Zoom Media, in Constanta, most companies have a specific area of activity, such as crewing or shipping, and do not need
Alexandru Angheliu, Touch Media
D
Florin Tircea, Global Advertising
a generous marketing budget. The big chain stores have all their marketing activity coordinated from Bucharest. Therefore, agencies
oing a simple Google search, one
websites, while around 2 percent are using
in Constanta are left with small and medium-
may be surprised by the number of
themes that were popular six or seven years
sized firms that take promoting decisions
agencies in Constanta (50), many of
ago. And this is not only because agencies
based on price. “It is a real challenge to work on the adver-
them presenting themselves as full service,
offer poor quality, but also because the com-
with around 10 offering online solutions.
panies using their services want a website
tising market in Constanta, because the effort
However, most do not in fact offer the full
with the minimum investment possible, but
is bigger than in the rest of the markets in the
spectrum of services and, where they do,
that will bring a big profit margin – something
country, sometimes double or even triple,
they outsource some to smaller agencies.
that is completely impossible.”
due to companies’ small marketing budgets,
His colleague, Florin Tircea, chief execu-
the lack of qualified staff in the field, the pre-
a website, in the first three Google results
tive officer at Global Advertising, agrees that
dominant factor in decision making – namely
pages you will find a lot of options. Now it
many clients don’t understand the impor-
cost and not quality – and especially the barri-
only depends what you are looking for as a
tance of online done right, the firm’s correct
ers that clients put in front of the agency, with
client – and on who is behind that agency,”
positioning online. “For instance, many
the pretense of ‘knowing better’ how their
said Eduard Croitoru, project manager at
companies give up on Facebook after their
advertising should look,” said Dima.
Global Advertising. “We took a look at the pri-
first campaign if they don’t see results and
vate clinic market and saw that out of 4,000
conversions right away. I believe that success
THE IMPORTANCE OF KNOWLEDGE
(cabinets, private clinics, hospitals, etc), only
is exponential: you need to have several
Coming back to the market, the Zoom Media
around 5 percent have websites, and of those
campaigns done right in order to achieve your
manager points out that few managers
only 3-5 percent have decent or very good
goals. It takes a time until your potential cli-
understand the complexity of the domain
“If you want to find an agency to do you
www.business-review.eu Business Review | February May 2016 2018
COVER ADVERTISING STORY 29 14
and choose to follow the agency’s proposals in terms of concept and message rejection. “Those on the same side as us understand and know that in order to be a good advertiser (person or agency) one must have knowledge of many fields, such as: economics, psychology, sociology and design; one needs an overview of the market and to find the right strategy for a product or service. Not all products and services work with the same strategy, the same message, the same communication channel,” added Dima. Still, when it comes to creativity, she believes that clients in Constanta understand that differentiation in the market is influenced by the creativity of the material used in the promo-
Eduard Croitoru, Global Advertising
Cristiana Dima, Zoom Media
tion, although they are in general less open to bold ideas and less willing to invest. ceed EUR 1.5 million, including the marketing
grown and even become our friends in time.
nel. “Companies have a perception of what
budgets of state institutions. Still, the Start
Opportunities exist for those who know how
is the right way of doing things, and mostly
Up Nation Program is an opportunity for Con-
to take advantage of them. The only problem
choose to invest in an outdoor banner rather
stanta’s advertising market, given that many
is that sometimes those opportunities are in
than an online campaign – forgetting the fact
young people have chosen to take the path of
contradiction with values and the way one
that Facebook has the largest client database
entrepreneurship; they understand the field
might see their business,” added Angheliu.
available,” said Florin Tircea.
better than older generations and are aware
Online is not a well perceived media chan-
On the positive side, he points to the digi-
In his turn, Alexandru Angheliu, manager
of the importance of advertising in promot-
tal workshop opened by Google in Constanta,
of Touch Media, says the advertising market
ing a business. They even choose to consult
which offers support to small companies
in Constanta can be summed up briefly: at the
a specialist in the field. I see another oppor-
that want to invest, and explains to them the
beginning of the road, with a real and con-
tunity for the development of the advertising
benefits of investing in online. And although
scious market only in the outdoor
market in the education of small
there is a long road ahead for Google, Ang-
entrepreneurs and their guid-
heliu thinks that it represents an open door
“And outdoor is limited to
ance to BTL, towards the
that will be seen and will have an impact on
traditional banners, mesh
marketing experience,”
and indoor advertising sectors.
added Dima.
banners and other types
the way companies in the coastal city handle their online budgets. “The advertising market in Constanta
of outdoor advertising that we find crowding
WHAT’S NEXT?
has developed with the explosion of the
any intersection. There
When it comes to the
smartphone market. There are many clients
Constanta advertis-
looking to invest in having their own apps.
is where budgets go and, at the beginning,
ing market’s power and
it affected our activity a
growth potential, Dima
great deal, because Touch Media is an agency that offers web, marketing online and branding
predicts that it will take it another three to five years to reach Bucharest’s level, and only when
Bear in mind that Constanta is not growing like Bucharest, Cluj, Timisoara or Iasi. Constanta has its own rhythm; it’s an atypical market. There is capital to be invested in this city, but the IT and advertising still have a lot
services. From my point of view, Constanta
it comes to the level of knowledge and pro-
to learn and grow. While in Cluj-Napoca or
is still a latent market, with opportunities
fessionalism.
Bucharest we can talk about a mature market,
closed to many agencies that don’t perform in
As for creativity, the Touch Media manager
in Constanta advertising is still in its adoles-
is not positive, in general, but has hopes the
cence, and I believe it will remain like that
His analysis of the market as closed is
situation will improve. “For sure, Constanta
for some years to come,” predicted the Touch
echoed by Zoom Media’s managing partner,
also has companies that understand adver-
Media representative. Still, he tips the growth
who blames this on agencies and clients not
tising and media, what it means to plan a
of IT in Constanta, which has to attract very
being motivated enough to offer more: the
budget, and that accept creative ideas, those
big projects from outside the city and even
client – a larger budget; the agency – more
being the ones we want to attract. There
outside the country in order to raise the level
creativity for projects. “The value of the
aren’t many, but we have started to work with
of fees. “Only then can we talk about real and
advertising market in Constanta does not ex-
those that are open and some of them have
important growth,” concluded Angheliu.
ATL or BTL,” said Angheliu.
www.business-review.eu Business Review | February 2018
30 PUBLIC RELATIONS
‘Communications professionals will need to think and behave like social activists’ The last 15 years of PR history, summed up by best practices in the 15 years of the Romanian PR Award’s competition, now feature in The Golden Book of Romanian Public Relations, the local communication industry’s first big collaborative effort. BR sat down with Dana Oancea, coordinating editor of the book and organizer of the awards, and learned about the book’s inspiration and creation, plus Oancea’s take on the industry.
ABOUT Dana Oancea organizer of romanian pr award’s she is president of the Forum for International Communications and has more than 15 years’ experience in PR, both in Romania and abroad, and holds a PhD from Ludwig-Maximilian-Universität in Munich. She has conducted a variety of interviews and published many articles in her role as editor-in-chief for PR Romania.
By Romanita Oprea
When and how did the idea of launching this book come about?
more than 15 years of involvement in the de-
an important milestone in the way Romanian
velopment of the PR profession in Romania:
PR has changed in the last 15 years and is still
When the 15th Romanian Public Relations
PR cannot be practiced as a management
changing. More substantially, however, it
Awards were approaching, the idea of a
function accepted by organizations and
represents fresh ways of ordering resources
Golden Book of Romanian PR occurred to
society, unless the practitioners have a solid
and linking different areas of expertise into
me naturally. Over the years, the national
body of knowledge based on study, dialogue
an integrated whole. The Golden Book of
PR competition was the starting point for
and reflection.
Romanian Public Relations not only provides
some important educational initiatives in our
The book represents in my opinion the
helpful guidelines for practical action, but
field, the most important being perhaps the
biggest collaborative initiative of this kind in
raises important questions about the impact
portal PR Romania. The book started from
Romania, bringing together a wide range of
and implications of our profession as well.
my simple conviction which I arrived at after
perspectives and professionals. It also marks
PR is a management function but it can only
www.business-review.eu Business Review | February November2018 2017
PUBLIC RELATIONS 31
make its full contribution if practitioners
understand the broad business and societal
version. As some of the awarded projects
have a comprehensive base of knowledge,
context in which PR plays a role. Included
included here are of ‘historical’ value, I did
commonsense and resources.
here, for example, are chapters on corporate
some detective work here and there to find
communication, crisis management, public
the right dialogue partner in organizations,
Has the concept changed over time? If so, why?
affairs and lobbying, internal communica-
as the original contact people were no longer
tions, media relations, corporate social re-
working there.
The first concept of this book started from
sponsibility, digital and social media, NGOs,
the fact that a truly practical book written
public institutions, cultural PR and emerging
by practitioners for practitioners and future
specialisms such as technology PR, financial
How long did it take to gather all of them and were there any challenges?
talents was missing from the Romanian
PR and health PR etc. We also focused on
I must admit, it’s been a long journey to this
public relations landscape. So I met with
the importance of context, be it social or
point. Planning and coordinating such a
members of the local PR community in
political, in understanding and delivering PR
project has been quite a challenge for me, but
March 2017 and we said that we wanted the
campaigns.
it was ultimately a very rewarding experience
young generation of practitioners and PR
PR is an evolving discipline and its growth
to see so many forces brought together by
students to learn better by involving them in
requires continual questioning to challenge
this collaborative effort, not to mention the
a personal and practical journey that brings
its boundaries and establish its terrain.
launch of the book in a very warm atmo-
together a significant number of successful communications programs of the last 15 years
sphere at Carturesti.
and a diverse range of personal experiences
What were the criteria in choosing the people writing the opinion pieces?
and opinions. Therefore, the core
I wanted in principle senior communications
of the book consists of 95 selected gold-awarded
practitioners and passionate exponents
How much time did it take from the first concept to the launch of the book?
of their areas of expertise to
communications
From the kick-off meet-
make the volume a truly
programs in the last
ing with the local PR
practical handbook.
community at the
15 years, giving the
This volume has been
end of March 2017
volume a substan-
a unique and creative
to the launch of
tial documentary
collaboration among
the book on 21 No-
dimension. These
52 practitioners. It is
vember, it took us
programs are the
opened by two distin-
almost eight months.
living testimony of the evolution of the local PR in-
guished authors – James E. Grunig, Professor Emeritus at Maryland
dustry’s concerns over this period
University, USA, and Aneta Bogdan from
and reflect to some extent the anxieties and
Brandient, a reference name in Romanian
hopes of Romanian society. These programs
and international branding. Although I can-
talk about the institution of partnership and
not name here each of the authors individu-
Besides the 15-year anniversary of the Romanian PR Award being an important milestone to mark, why did you choose this moment for the launch?
its values, about the rights of others and the
ally, I want to acknowledge their efforts to
The launch was given special and individual
responsibilities to them, about communica-
produce contributions that I believe are
attention, but of course there is a symbolic
tors’ efforts to understand their audiences,
insightful, informative, and forward look-
link between the 15th anniversary of the Ro-
about our talent to listen and to integrate the
ing. We all hope that these opinion pieces
manian Public Relations competition and the
expectations of different stakeholder groups
promote healthy dialogue and constructive
Golden Book, showing that PR is now a true
into organizational strategies etc.
change regarding the current and future role
profession in Romania. In fact, both projects
of the PR profession in both business and
have a strong educational face and advocate
society.
the positioning of the profession through
The starting concept has been significantly extended by adding a very prolific debate about our profession and its values, bringing together 52 contributors, senior communica-
knowledge.
tions practitioners and ardent exponents of
How were the themes of the opinion pieces chosen?
their areas of expertise, which makes the
I first produced editorial guidelines for all the
What are your hopes for Romanian PR in 2018?
volume a true companion in the analysis and
texts included in this volume and made a first
Use your knowledge, insights and enthu-
the study of Romanian PR practice.
allocation of potential contributors for each
siasm to move this world further, while
chapter. I also proposed for discussion a first
contributing to the growing knowledge and
Why structure it in 18 areas of expertise?
selection of the case studies and their struc-
understanding of PR and its practice. And
These 18 parts reflect the main categories
ture to be included in the book. Of course,
don’t forget – be wise in deeds, not words.
in the Romanian PR Awards competition. It
there were a lot of permutations, creative dis-
Words today have the stability and perfor-
was very important for me to help readers
cussions and improvements to reach the final
mance of soap bubbles. Good luck!
32 ENTREPRENEURSHIP
Good fit for the market: from gym to book and TV After energizing London with Club Cardio, a business hosting fitness events in a nightclub setting, Irina Alionte entered the Romanian fitness market with Bodyshape Transformation Centre, the company that she founded in 2015 and still runs today. She told BR about the philosophy of the gym and her plans for 2018. By Georgiana Bendre
www.business-review.eu Business Review | February 2018
ABOUT IRINA ALIONTE owner, bodyshape transformation centre she is a 29 year entrepreneur who founded Bodyshape Transformation Centre in 2015 and still runs today. She previously owned a marketing consulting and events management company, Born2Succeed in Romania, as well as a business hosting fitness events in a nightclub setting in London, Club Cardio. She graduated from Warwick Business School, with a degree in MSc Marketing and Strategy.
www.business-review.eu Business Review | February November2018 2017
ENTREPRENEURSHIP 33
What differentiates Bodyshape Transformation Centre from other gyms?
or 1 year programs. Most of our challengers
lenge” burned over 4,000 kg of fat and we
(that’s what we call participants in a six-week
have over 1,000 documented success stories
Bodyshape is not just a fitness center – it’s
transformation program) decide to continue
with Before and After pictures.
your second family. We work out and relax
with a one-year program – it’s the most popu-
together, we laugh together, we eat and party
lar option for those looking to live a healthy
together and we grow together into our best
lifestyle in the long run.
version. Bodyshape promotes long-term lifestyle changes.
build healthy eating habits, enter a workout
Is there a peak season for the center, for example after winter Holidays? Or is it more about a lifestyle, a constant training and mindset?
Usually six weeks is enough for people to routine and get accustomed to making simple
Even though there is a large pool of people
programs built on constantly encouraging
adjustments to their existing lifestyle. Once
who adopt “the Bodyshape lifestyle” all year
members and continuously measuring their
the “6-week Challenge” is over, they find it
long, we can still feel a peak just before and
progress to make sure that they reach their
easier to simply maintain the initial momen-
after the winter holidays, or before the sum-
final objectives. Bodyshape fitness sessions
tum and continue with their new habits.
mer vacation, when everyone wants to look
All our programs are results-based
are personalized depending on each mem-
For companies we offer discounts depend-
fit on the beach, as well as in the months of
ber’s fitness level and all the exercises are
ing on the number of subscriptions and we
September and October, after the summer
scientifically proven to burn up to nine times
also organize teambuilding events which
holidays are over.
more fat than a normal aerobics class.
include a fun team workout and a nutrition
Members benefit from personal training,
seminar for all participants.
but in a dynamic group format, which makes it more fun and more accessible for all budgets. Our nutrition sys-
What are the objectives for 2018? We plan to take steps to expand our business,
You also organize seminars/workshops on mindset and emotional eating. Are Romanians open to them?
as more and more potential members want us to open a location closer to
tem is based on de-
Yes they are and they
where they work and
tox techniques that
understand more
live. Right now we
have helped thou-
and more that they
sands of women
are the only ones
northern area. I
and men create a
responsible for
am also working
positive relationship with food. All through the program, our members have access to emotional eating seminars
they think and feel reflects on their behavior and ultimately on their health and happiness.
How much was the initial investment?
their sweet cravings and unhealthy snacking,
The initial investment in equipment and
a very important, yet totally neglected aspect
operational capital to support the business
of the fitness industry.
in the first year was EUR 35,000. We reached break-even point within the first 12 months of setting up the business.
those who successfully finish our “6-week Challenge” program and lose 6 kg in six
book and a weekly online TV lifestyle show, to empower people to live a healthier lifestyle and be the best possible version of themselves.
tion experts which will help them get rid of
Moreover, we are the only center in Roma-
on launching a
changing their habits and lifestyle. The way
and coaching sessions with our transforma-
nia that rewards its clients for their results:
are situated in the
You have also owned other businesses. What have you learned from them that has helped you in your current business and what made you continue as a young entrepreneur? I owned a marketing consulting and events
What turnover and profit did the center register in the first two years?
management company, Born2Succeed, which
weeks receive a bonus of another six weeks’ training for free. Those who lose less than
We ended 2015 with a turnover of EUR
from the UK, USA and Canada. Club Cardio
6 kg receive credit of EUR 20 / kg lost as a
151,092 and in 2016 we had a turnover of EUR
also prepared me for running Bodyshape
token of our appreciation for their efforts. In
231,384, which represents 55 percent growth.
Transformation Centre. What I believe all
this way we offer our clients the support and motivation they need to continue with us for
promoted quite a few international speakers
these have in common is the fact that I love
What have been participants’ results so far? Have they fulfilled their objectives and changed their mindsets?
creating fun experiences for people, adding
Is there a subscription after the “6-week Challenge”? Do you also have corporate programs?
Fulfilling the “6 kg in 6 weeks” objective
people become even more of what they are,
is easier than changing your mindset for a
fulfill their potential and take major action
lifetime, but it is the first important step, and
towards their goals and ideals. That’s what
After the “6-week Challenge”, our members
more and more people are deciding it’s time
motivates me the most and keeps me going
can continue with 4 week, 12 week, 26 week
to make a lifestyle change. Our “6-week Chal-
as a young entrepreneur.
the long term.
value to their lives and improving the quality of their lifestyle. I’m passionate about seeing
www.business-review.eu Business Review | February 2018
34 ROMANIAN FILM
Wave goodbye? Ringing in the new for Romanian film Some say the Romanian New Wave has finished. Some say it’s transforming into something bigger and better, given the amount of international film festivals that are awarding local movies. Business Review challenged three film critics, Ionut Mares from Ziarul Metropolis, Cinemagia’s Stefan Dobroiu and Bogdan Besliu of the Comedy Cluj Film Festival, to wrap up 2017 and lift the curtain on 2018.
By Oana Vasiliu
Pororoca is currently on silver screens
SILVER SCREEN SURPRISES OF 2017
2017 was a respectable year for Romanian
der Solomon. A surprise – the relatively large
Dobroiu of Cinemagia says that 2017 was a
cinema, says Mares of Ziarul Metropolis, “not
year without masterpieces, “but also one
brilliant but not to be dismissed. Even though
number of debuts: seven.”
which shows that the Romanian cinema
it is almost unanimously acknowledged that
Cluj, also cited the documentaries as the
landscape is becoming more and more com-
there was no great Romanian film, we were
surprise of 2017. “A few really good documen-
plex. Sometimes new, unfamiliar voices are
represented at most of the major festivals
taries, a handful of, as usual, great short films
even more interesting than great films from
(Berlin, Karlovy Vary, Sarajevo, Locarno,
and feature films released both in interna-
established directors: they are the fresh air,
San Sebastian – but not Cannes, a first after
tional festivals and cinema halls. For me, the
the future of Romanian cinema.” He added
many years) and won some awards. About 20
cinematic surprise was Marita, the heavily
that the surprises came from the smaller
feature films (including some documentaries)
character-focused debut feature from Cristi
number of documentaries. “It is hard to find
were released in cinemas, around the average
Iftime,” notes Besliu.
documentaries as diverse as Radu Jude’s The
of the last few years. There were fewer spec-
Dead Nation, Andrei Dascalescu’s The Petrila
tators than in 2016, but that year was a high
FRESH FACES OF 2017
Planet and Alexandru Solomon’s Tarzan’s
outlier. The most successful and ambitious
Dobroiu nominated Daniel Sandu. “He may
Testicles. Somehow they are still very fresh
films were Fixeur from Adrian Sitaru, The
not be that fresh, after a string of successful
in my mind at the end of the year, while the
Last Day from Gabriel Achim, and 6.9 on the
short films, but Daniel Sandu made a splash
fiction features from 2017 just seem to mix
Richter scale from Nae Caranfil, as well as the
with his first feature, One Step Behind the
together in a blur,” says Dobroiu.
documentary Tarzan’s Testicles from Alexan-
Seraphim. It is far from perfect, but it is a
Besliu, the artistic director of Comedy
www.business-review.eu Business Review | February 2018
ROMANIAN FILM 35
One Step Behind the Seraphim
Snapshot from Meda or the Not Too Happy Part of Things
many of them from female directors. “From these films I would recommend Adina Pintilie’s Touch Me Not, the first Romanian feature directed by a woman to be selected in the official competition of the Berlinale, and Ioana Uricaru’s Lemonade, as I expect it to be a sharp Romanian commentary on the dangers of the famous American Dream. I would also mention Constantin Popescu’s accomplished thriller Pororoca, which is already in cinemas.” Mares points out that 2018 has begun with the release of two important, solid films, which had their world premiere in San Soldiers. A Story from Ferentari
Sebastian last year: Pororoca from Constatin Popescu, and Soldiers. A Story from Ferentari, an explosive debut by Ivana Mladenovic.
promising example of intelligent mainstream
tean (Breaking News), Ana Radu (Meda or the
Two other directors will have movies at Ber-
cinema, the kind of project that could con-
Not Too Happy Part of Things), and Stefan
lin: Adina Pintilie will debut with Touch Me
vince both critics and the audience. In terms
Iancu (One Step Behind the Seraphim).”
Not, in the Main Competition, and Corneliu
of fresh acting talent, I would nominate
Sandu received another nod from
Porumboiu will present a new documen-
Voica Oltean, the young protagonist of Iulia
Besliu. “There are many new faces on and
tary, Infinite Football, in the Forum section.
Rugina’s Breaking News.”
behind the screen and that is a very good
Among other films expected in 2018: Charles-
thing. Daniel Sandu’s One Step Behind the
ton, from Andrei Cretulescu, Radu Muntean’s
ti Iftime (Marita) and Daniel Sandu (One Step
Seraphim put the spotlight on a lot of young
Alice T, Love: Dog from Florin Serban, and It
Behind the Seraphim). “Alexandra Balteanu,
talents that, although they weren’t making
is Irrelevant if we come into History as Bar-
a young director from Romania established in
their debuts, had a lot more polish. Then
barians from Radu Jude, as well as Morometii
Berlin, and the author of a school-based film
there’s the very young Voica Oltean (Break-
2 directed by the veteran Stere Gulea.”
Hunting, shot in the suburbs of Bucharest
ing News, directed by Iulia Rugina) who I’m
and shown in the country only in three festi-
sure will appear more and more on Romanian
fictional feature film debut, Soldiers. A Story
vals. Octav Chelaru is a very young filmmaker
big screens. From behind the camera, Cristi
from Ferentari, due out in February, Andrei
who has previously directed three short films
Iftime is on my directors-to-follow list.”
Cretulescu’s Charlestone, the sequel to
Mares mentions two young directors: Cris-
Meanwhile, Besliu tips Ivana Mladenovic’s
Morometii (directed by Stere Gulea) and new
(the most recent, Black Clothes, was shown
films from Radu Jude, Tudor Giurgiu and
come a big name in Romanian cinema. There
2018. COMING SOON TO A CINEMA NEAR YOU
are some discoveries among the very young
Dobroiu finds 2018 extremely promising: a
promises to be an exciting year for local film
actors: Diana Spatarescu (Fixeur), Voica Ol-
record number of first features are expected,
buffs.
in Locarno in 2017) and I bet he will soon be-
Radu Muntean among the highlights of what
www.business-review.eu Business Review | February 2018
36 CONTEMPORARY ART
Change of art: local names make their mark Believe it or not, Romania is currently the talk of the contemporary art world, with major figures emerging onto the global avant-garde stage. To find out more, BR talked to three contemporary art connoisseurs: Corina Bucea, project manager of the Romanian pavilion for Biennale di Venezia 2017; Eugen Radescu, director of the Bucharest Biennale; and Nona Serbanescu, executive director of the Association for the Promotion of the Contemporary Arts.
Kassel. The highlight for me, since I became
By Oana Vasiliu
a complicated period, politically and socially,
deeply immersed in it, was of course the Venice Biennale, where I worked as part of the team behind the highly praised Apparitions, a solo show by Geta Bratescu curated by Magda Radu. The Venice Biennale also featured Ciprian Muresan in the international exhibition, with a selection of drawings revisiting historical art works,” adds the project manager. “Unfortunately, Romania is going through and the art scene is greatly affected by all these wrong changes that are happening now. Even so, the contemporary art scene is fighting to survive to all the vicious political maneuvers. And yet 2017 was a good and interesting year in contemporary arts, with for
Courtesy of Venice Biennale Team
example Lea Rasovsky at the Mobius Gallery (still running), the Theodor Moise exhibiCourtesy of Mobius Gallery
tion at Creart, and even the WOW - War of
Geta Bratescu
Worlds exhibition curated by myself at Mora Art Centre, Felix 72A Gallery, and Pasajul Universității,” notes Radescu. Serbanescu shares with Business Review quite a list. “With an impressive new edition Lea Rasovszky
of the Art Encounters Biennale at Timisoara, a dense event by NAG (White Night of Galleries) in 12 cities, a courageous theme for Bucharest
PICKS OF 2017
porary art is visible and dynamic outside the
Art Week and a few very relevant visits from
Crucially, the independent art sector still
usual suspects of the ‘hotspot’ cities (we ex-
artists abroad to Bucharest such as Hirotochi
suffers from a lack of planning, money and
pect that from Bucharest, Cluj and Timisoara
Ito at Galateca, 2017 was a full year for the
institutional help of any kind. “In the stormy
and Iasi). One of my new year’s resolutions is
Romanian contemporary art scene. A very
landscape of private, independent initiatives,
to see for myself more of all the good things
interesting project that started in 2017 and
I am relieved to see some of the spaces for
that seem to be happening in Targu Mures,
which caught my attention was The Institute
contemporary art still there – see Fabrica de
Sfantu Gheorghe, and Arad.”
of the Present, a research platform by Stefania
Pensule (Cluj-Napoca), Salonul de proiecte
She also cited international art events,
Ferchedau and Alina Serban. If I were to sum
(Bucharest), and tranzit.ro to name but a
such as the Venice Biennale, Documenta
up the year I’d say it brought improvements
few,” says Bucea. “And some new initiatives
Athens/Kassel and Skulptur Projekte Munster.
in mobility and good quality international
are appearing or growing stronger and bolder
“Romanian artists have participated in each
exhibitions, a better focus and a more vibrant
(such as aici acolo, a nomad pop-up art event
– Alexandra Pirici, one of the strongest voices
art scene in cities outside Bucharest.”
happening in various abandoned spaces in
in terms of practice and discourse on today’s
Cluj, with a particular focus on young artists
international scene at Skulptur Projekte
BEST DISCOVERIES OF 2017
and technology). One of the most interesting
Münster, with the project Leaking Territories;
Bucea mentions some emerging talents. “It
things that I noticed in 2017 is that contem-
and Geta Bratescu at Documenta Athens and
was definitely refreshing to see excellent
www.business-review.eu Business Review | February 2018
Courtesy of the artist’s website
Courtesy of the artist’s website
Courtesy of The Institute/Diploma
CONTEMPORARY ART 37
Boris Peianov
Flavius Rogojan
Ciprian Georgescu
works (and solo shows) by several young
Armanu and Silvia Amancei (showing in 2017 at Salonul de proiecte in Bucharest) and discover the work of Mirela Moscu, a Cluj-based painter who changed my feeling about painting (with a solo show at Lateral Art Space).” For Radescu, two artists stood out. “I re-
Courtesy of Creart
at Pilot in Fabrica de Pensule), Bogdan
Courtesy of Venice Biennale Team
artists, such as Flaviu Rogojan (still on view
ally love the work of Andreea Chirica; she is
Andreea Chirica
Ciprian Muresan
very involved and also very chameleonic in terms of working with different mediums and
For Bucharest, it’s Biennale time. “This
Serbian architect, who has a very interesting
year for sure Bucharest Biennale 8, curated by
technique of doing collages,” adds Radescu.
Beral Madra and Razvan Ion, will be the main
Serbanescu also named her picks. “The
contemporary art event. With more than 20
one young artist whom I discovered in 2017
international artists and some Romanian
and who was also present at the Diploma
names, BB8 will offer the fresh perspective
show is Ciprian Grigorescu. (…) Also, Razvan
of both emerging and established artists. As
Radu is an artist we will be hearing about in
a biannual cultural event, BB’s temporary
the next few years. Although we are not talk-
structure allows a deconstruction of the
ing about a newcomer, I also want to bring to
systems supporting and underlying what has
the public’s attention Angela Bontaș, an artist
been called the ‘experience economy’. The
from whom we will see a major comeback in
Biennale is an attempt to turn these scripted
the next few months.”
‘experiences’ upside down, to re-think and
Courtesy of New Museum
art levels. Also, Boris Peianov, a Romanian-
re-imagine processes of domination, while
Alexandra Pirici
2018. WHAT’S NEXT?
positioning the city of Bucharest as a field
Great news comes from New York City. “I’m
of cultural action and exchange,” concludes
not yet published their calls, so few art events
definitely curious to see (though from a frus-
Radescu.
have been announced so far. “One of the main
trating distance) what Alexandra Pirici will
Serbanescu also cites the Bucharest Bien-
problems in the Romanian independent arts
do in her show at the New Museum, one of
nale. “It is pretty early to talk about 2018
scene is the lack of predictability, as all art
the most interesting museums in the world,
in Bucharest as we are still waiting for the
organizations work out their annual budget
especially since her work seems to take a step
schedules of the most important art events.
during the current year,” she notes. According
further by involving a hologram into her team
But it is an even year, meaning there will be
to Serbanescu, who also coordinates Bucha-
of performers,” says Bucea. Locally, she men-
the Bucharest Biennale so we should keep
rest Art Week, they will come up this year
tions the opening of a new private museum
our eyes on Razvan Ion and Beral Madra, the
with an unconventional, experimental col-
(MARe) in Bucharest, “especially since it feels
curators of the eighth edition,” says the ex-
lective curatorial solution to add consistency
like a well-kept secret, and I am curious how
ecutive director. She adds that the two main
in modus operandi to the theme of “Working
it will merge itself into the local art scene.”
funders of the arts and cultural scene have
Together”.
38 WINE
Grape expectations: Liliac Winery’s revenue set to grow 10 percent in 2018 As of January month, Miron Radic has taken over the operational management of amb Wine Company. BR talked to Liliac Winery’s CEO about his biggest plans in this new role, how the company is changing, and the entire Romanian wine industry.
www.business-review.eu Business Review | February 2018
ABOUT Miron radic CEO, LILIAC WINERY He has over eight years of experience in the wine industry and has been part of the Liliac team since the official winery’s launch in Romania, in 2012, handling export sales and the marketing until 2015. That year, he was appointed managing director of amb Wine Company, alongside Victor Ciuperca.
By Romanita Oprea What made you decide to go into the wine business? It was more by accident than design that I went into the wine business, but I was always involved in the drinks business, even during my studies and student jobs. When I saw the tender at my university for the diploma thesis about Romanian wine, I immediately applied and that brought me to where I am now. In the end, the wine business is a very nice one, where you deal with passionate people and educated consumers.
Since Liliac’s launch, you’ve held several key positions at the company. What are the main things you’ve learned in each of them? First I was hired to work for the marketing side of the company, especially focusing on the export markets. After that, export sales were added to my plate and soon after that I was put in charge of the whole marketing and sales department, together with what would be best described as product management. So I was in charge of almost everything that happened after the wine was bottled. From these “jobs” I learned that each step we take in the winery is just a small cog in the bigger picture, but it is crucial to be the best in each of these tasks so that the result meets our own expectations. In 2015 I was appointed managing director along with Victor Ciuperca. We shared the responsibilities and worked amazingly well as a team and we still do. From this year on we want to focus more on lean management and the optimization of the winery, so we decided to have only one general manager, which is
www.business-review.eu Business Review | February 2018
WINE 39
me, but Victor stays close to us as a corporate
invest in the people behind Liliac, to build
as rosé wines are easy to approach, also for
advisor and he is still handling the other af-
them up so that we build our business in a
non-wine drinkers. The second trend is one
fairs of the holding company.
sustainable way.
I especially like, as more and more consum-
What have the challenges been so far?
locally produced varieties like Feteasca. This
Working in an international environment
How was 2017 for Liliac? In May you predicted a turnover of EUR 1.5 million.
is always challenging, especially with two
2017 was a record-breaking year for us. We
also for the producers, as these wines have a
so completely different mentalities as the
sold more than 340,000 bottles and achieved
special character that can’t be found any-
Austrian and Romanian ones! Communica-
the target turnover of EUR 1.5 million. This
where else in the world.
tion is these fields is always an issue, but I try
growth should continue in 2018, when we ex-
to be a mediator and understand both sides
pect to achieve an increase of 10 percent. This
and so far I think we work great as a team.
will bring us close to our production capacity.
ers and also producers are again focusing on
Another challenge is to be a young person in a traditional field like the wine business. It
is very good for the local HoReCa market, but
What about the Romanian wine consumer? How would you characterize him/her? There is not one type of Romanian wine consumer, as there is a big difference in the
is crucial to respect the experience of older
What are the main changes that 2018 will bring for the company?
people and to learn from them, but you also
Our new office and storage space in Bucha-
used to demi-dry and sweeter wines, and
have to show them that things can be done
rest are now fully operational and we are
the young and hip group, those who enjoy
differently and that you sometimes have to go
investing in the last phase of the cellar this
drinking wine while having dinner or going
off the beaten path.
year. We will enlarge the cellar surface, and
out. We can’t change the habits of older wine
build our own storage facility in Batos and
drinkers. We produce our wines in the way
What have your first moves been in your new position and why?
our own “barrique room”, to ensure the highest possible quality. Also, we will continue our efforts to
One of my first deci-
create accommodation
sions was to reduce
directly at the winery
the sales team and
and we hope to have
to focus more on our
this done by the end
core competencies,
of the year.
which is making great wine. Also, I want to
preferences of the older generation, people
we like them the best, which is dry, and we target an audience that appreciates this style and is also ready to pay a premium for the high quality that we offer.
How has Liliac’s position changed through the years and what are your hopes and aims for the brand?
winery; we have to understand
How would you characterize the Romanian wine industry?
that what happens in Batos at the winery is
It is undergoing a change right now. We have
anyone else in the market. We also dared to
crucial.
to be honest and admit that the market is
introduce new wine types such as young wine
bring the team closer to the
When we started we were the newcomers with a very different style than
dominated by the big players, who create
and orange wine, and we were soon seen
What challenges do you expect?
millions of liters of wine and are mostly posi-
as innovative, as many of our competitors
The competition on the local market is grow-
tioned in the lower-cost segment. More and
copied our style. Now we are aiming for the
ing each year and we have to continue to
more boutique wineries, like us, are coming
super-premium and ultra-premium segment.
stand out and enhance our position on the
to the market and fighting over the premium
Our best wines should and will belong not
market. Also, changes need some time to be
and super-premium customers, as the de-
only to Romania’s elite, but also match the
effective within the team. It is a process that
mand for this kind of wine is increasing.
international benchmarks of famous wineries around the world. But we will always stay as
takes time as we are building on what we have achieved so far.
What do you foresee for it in 2018?
we are and try new things from time to time.
The change will continue and HoReCa will
What do you believe your main qualities for the position are?
play an ever bigger role. Most restaurants list
Which is the key Liliac product and why?
the big producers because they subsidize the
Our flagship wine is our Liliac Sauvignon
It is very important to stay calm when things
listing, not because they are selling a lot of
Blanc. It put our name on the map of Roma-
move fast and everyone needs everything
their wine.
nian wine and it is our best-known wine. Also internationally, we have shown that Roma-
yesterday. We are following a clear strategy and plan and although it sometimes may be
What are the trends in this market?
nian can produce wines of high quality and
tempting to do otherwise, we have to stick
There are currently two different trends. The
with a unique touch for even such a wide-
to our decisions to achieve long-term goals.
first and largest is rosé wines. There is a lot of
spread grape variety. We did not copy New
Another thing is that we are in a people busi-
rosé on the market now and I think that this
Zealand or France; we made an authentic
ness. For me, it is very important that we
trend will continue for the next few years,
Transylvanian Sauvignon Blanc.
www.business-review.eu Business Review | February 2018
40 DOCUMENTARY
King Michael’s War In 2002, I chose to interview King Michael of Romania with the idea to place the recording with Duke University’s “Living History” video series. As a producer for the late Sir David Frost, I had the chance to produce programs with a wide slate of world leaders. I had heard from my father about King Michael’s brave actions in WW2 and I felt, at the very minimum, that the King’s account should be memorialized for scholars and journalists alike. A decade lapsed and I decided in 2016 to produce a fullfledged documentary, “The King’s War,” which has now been broadcast through-out Romania and in 40 countries. Abbreviated below, my account of my initial sit down in 2003. We talk about the arrest of Ion Antonescu.
By John M. Florescu
monumental capacity to exhaust intrusive enemies. The first thing I gather up about the King of the Romanians is he speaks English like a native-born Englishman. He is tall too and stands erect which makes him look taller. Simply put, he has a King-like look. He greets me warmly, and we begin with perfunctory, pre-interview small talk. I tell him about an earlier interview at the Kremlin in which I spotted that Yeltsin had only two fingers on one hand. His Highness seems moderately amused but his facial expression, as I will notice over the next two days, rarely gives much away. A soft and gentle voice, his words are punctuated by an occasional self-deprecating chuckle. He has a long gaze befitting a man who has witnessed the world from the top, and who has endured the three isms of the last century – fascism, communism, and a sort of wildcat capitalism – that engulfed post -1989 Romania. The King’s life has been one of consequence, I felt, for in WWII, at the age of 22, he lured Hitler’s Romanian ally, Marshall Ion An-
Photo: Viorel Sergovici Senior
tonescu, a kind of Fuhrer lite, to his palace, summarily arrested him and then had the Royal Guard lock him in a semi-chilled room where the King kept his stamp collection. As the King put it that same night in a nationwide radio broadcast, “The war is finished and we are joining the Allied nations.” King Michael and John M. Florescu during the two-day recording, at Elizabeta Palace, in Bucharest
B
This essentially unknown palace showdown saved thousands of Allied lives and
UCHAREST, Romania. These days
the Imperial German family of Hohenzollern-
shortened the war because the main line of
it is somewhat uncommon to have a
Sigmarinen, he is the great, great, great
German resistance shifted 500 kilometers to
conversation with someone who has
grandson of both Queen Victoria of England
the northeast. Some historians contend that
had a conversation with Adolf Hitler. Indeed,
and the descendant of Tsar Alexander II of
as a result of the King’s actions, the Russians
there are no leaders of World War II left. Only
Russia. For good measure, he is also married
would capture Berlin first, beating out the
one prominent figure remains, and he is in
to a Bourbon.
Americans who were slugging it out from
front of me right now. “We took the train and
But it was not the King’s breathtaking ge-
Normandy. For his brave acts, in 1997, the King was nominated for a Nobel Peace Prize.
went up to Berlin and we had lunch with Hit-
nealogical tree that intrigued Hitler. Romania
ler,” said my guest with time warping effect.
had what Hitler craved deeply: Texas-size
“It was not very pleasant at all.”
deposits of high-grade oil urgently needed to
that day – the King called the events “oper-
Those messy few minutes at the palace
drive the German war machine. Romania also
atic” – were characterized by British acade-
Michael of Romania, now 94, blessed with a
had a million-man army, bigger than the US
mician John Erickson as “one of the most
pedigree almost like no other. A member of
at the time, a welcome boost given Russia’s
decisive days of the whole war.”
Hitler’s guest that day, in 1941, was King
www.business-review.eu Business Review | February 2018
DOCUMENTARY 41 guards to burst into the room. They encircled the dictator. “What is this?” Antonescu said. One of the NCOs put his hand on the dictator’s arm. The commander said, “Take your hand off the Marshal’s arm.” The dictator was jostled into the hallway and then Antonescu spat at them. “Tomorrow you will be hanged in the main Square.” Leaving nothing to chance, the King’s men sprung the same trick on a couple other cabinet members, luring them with false pretenses and arresting them one-by one, just before dusk. The waiting chauffeurs and entourage were whisked away cowboy like: “You don’t move, you come with us” during what one might call a modified changing of the guard. Events were moving at lightening speed. ”We didn’t know if Hitler knew [but] the Gestapo was near the Palace, “ said the King. Sensing trouble, the head of the secret police went straight to the Germans and the German Ambassador Killinger, was dispatched to the Palace. “He came in furious looking, like murder in his eyes. Where is Antonescu?” he demanded. The King fed him a story, but Killinger didn’t believe it. He “knew something was up” and notified Hitler.” Within hours and on orders from Hitler, waves of German planes bombed the Palace hoping to kill the King and his family. From half a century’s distance, the King explains these events in almost a matterof-fact way. “We couldn’t think much about what was happening around. We had to get the job done.” By late 1944, the King had deposed of Hitler’s ally – an act for which Truman would later praise King Michael in a highly publicized Letter of Merit. “In complete disregard for his own safety, he gave the signal for a coup d’etat by ordering the palace
The King calls his mother’s return from exile in Italy to Bucharest as the “happiest day in my life”
guards to arrest the dictator.” Joseph Stalin wrote the same sort of letter – in fact, one of four he wrote for world leaders while Soviet
A PALACE COUP D’ETAT
not continue. We have to get out [of the war].
party secretary. With such gratitude, one
On August 23rd, 1944, the King invited Mar-
He refused flatly. And that is where he said
might have thought the King would have got
shall Ion Antonescu to the Palace to discuss
this thing about his promise to Hitler...that he
some of what he wanted from Washington,
the war situation. “I asked him to come,” said
was going to be with him. He is an officer; he
London or Moscow.
the King, as if to underline his command over
gave his word of honor.”
a lower ranked officer. The dictator was taken
After almost an hour - and at a clear
Instead, he got Andrei Vyshinsky, the Stalin’s architect of “The Great Purge.”
to a sitting room, with a cadre of guards loyal
impasse - the King said: ”I am very sorry, but
to the King hidden next door.
then I’ve got nothing more I can do.” The
The full version of this article can be seen
“nothing more I can do” was code for the
on line at www.business-review.eu
“I started by saying that this situation can-
Hopes for change as Romania enters its second century As we kick off 2018, the year in which the country turns 100, BR’s resident expat presents her wish list for the second century of life in Romania.
1
Photo: Dan Mihai Balanescu
www.business-review.eu Business Review | February 2018
42 EXPAT EYE
By Debbie Stowe
S
o, Romania is about to become a cen-
have citizens grumbling about their nation’s
tenarian! For those not up on their his-
shortcomings than the tedious bragging and
tory, on December 1, 1918, Transylvania
“exceptionalism” of Trump-voting Americans
(along with the three Bs: Banat, Bessarabia
or “two World Wars and one World Cup”
and Bukovina) was united with Romania,
British hooligans. But in my years here, I’ve
creating the country we know and (mostly)
noticed the reverence that many have for the
love today. Cue: a lot of fuss, taxpayer money
foreign and foreigners (especially West-
spent, vanity projects and so on.
erners), often considering them wise and
Allow me to add my voice to the cacophony. Because this is the first column of this
sophisticated. I hope that more Romanians will start to
milestone year (and not at all because I’m still
realize that Westerners are not better than
in a post-Christmas slump and lacking any
you – we’ve just had life easier, and had dif-
other ideas), please read on for my wish list
ferent opportunities. This is a great country,
for Romania’s big 1-0-0.
and being Romanian is no source of shame.
1
3
5 Let’s see some respect for the pedestrian!
A PROPER GOVERNMENT
EQUAL RIGHTS
5
People get the leaders they deserve, goes the
It’s a contradiction that while communism –
old saying. Rubbish! How do the many intel-
which left this country many legacies, usually
Landline: Ring, ring. Ring, ring.
ligent, honest and hardworking Romanians of
bad – espoused gender equality, Romania
Me: Hello?
my acquaintance deserve this current sham-
doesn’t feel like a very equal society. From
Caller: *Asks for someone else*
bolic shower of sh*ts? Why do New Zealand-
the serious (domestic violence figures) to
Me: (in halting Romanian) I’m sorry; you have
ers, for example, who’ve never endured any-
the trivial (the habit of some men of greeting
the wrong number.
thing like the deprivations that Romanians
other men with a handshake while totally
Caller: *Hangs up, with no word of apology*
have, deserve the nice pregnant lady and her
ignoring any women), females often seem
Or:
civilized husband, while you good people
to have a tough time of it. And let’s not get
Caller: Cine esti?
are forced out into the freezing cold so often
started on gay or disabled rights…
Me: (in halting and increasingly indignant
to protest against rigged elections, cyanide mines, the legalizing of fraud, and so on? So I wish for Romania decent leaders. Not
As young people adopt wider European
POLITENESS
Romanian) No, you called me! You introduce
norms and civil society strengthens, this is al-
yourself; you don’t ask who I am!
ready changing for the better, but I hope that
Caller: Cine esti?
even an Obama or a Trudeau (though that
as Romania embarks upon its second century,
would be nice). Just people who don’t steal,
it will embrace all its citizens, whatever their
you’ve just disturbed through your own
or commit fraud, or want to exculpate those
sex, sexuality, race or ability.
mistake? Really? My mum actually thanks
who do.
SELF-RESPECT
4
How hard is it to say sorry to someone
wrong numbers for calling. Okay, that’s taking
PASSABLE PAVEMENTS
BC – before children – I thoughtlessly navi-
telephone etiquette a bit far. But something to ponder. La multi ani, Romania!
“Romania’s a nice country – shame it’s
gated the potholes, cars and huge puddles
populated” is a refrain I have heard again and
that plague Bucharest pavements with just a
again. Forget the Western European tabloid
tut. Now, with a buggy, I often struggle even
Agree? Disagree? Why not write to me at debbie.
newspapers, and racists and nationalists like
to get along the street, or end up swearing
stowe@business-review.ro and tell me your own
Nigel Farage and Geert Wilders – sometimes it
at absent motorists as their selfishly parked
wish list for Romanian’s landmark year?
seems like this country’s worst critics are its
SUVs force me to push my little ones off the
Debbie Stowe is a British writer who has lived in
own people.
sidewalk and wheel them in the street along-
Romania since 2002. The second edition of her
side frenzied rush hour traffic.
book, Culture Smart! Romania, is out now.
In a way, it’s endearing. Much better to
www.business-review.eu Business Review | February 2018
44 FILM
The Commuter DIRECTOR: Jaume Collet-Serra STARRING: Liam Neeson, Vera Farmiga, Elizabeth McGovern ON AT: Movieplex Cinema, Grand Cinema & More, Happy Cinema, Cine Globe Titan, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, 0T IMAX®
I
FILM REVIEW
By Debbie Stowe
studies, discuss money worries with his wife (Elizabeth McGovern) and travel in and out of the city to work. So far, so mundane, until one day he encounters an attractive stranger on the train (Vera Farmiga). From Hitchcock to Derailed with Jennifer Aniston, Strangers on Trains in movies spell trouble. Don’t go there, Michael!
n Taken, he had a very particular set
Needless to say, he goes there, and action
of skills, which he used to murderous
thrills ensue.
effect on Albanian pimps in Istanbul. In
I won’t reveal the plot point that sets
As well as rehashing Non-Stop by simply
Non-Stop, he wasn’t a good father, he wasn’t a
events in motion, because (a) it would be a
switching the form of transport, director
good man, but he wasn’t hijacking this plane!
spoiler, (b) it’s utterly ludicrous, (c) it’s ir-
Jaume Collet-Serra’s film borrows from, or at
relevant; just accept that there are bad guys
least recalls, a bunch of other recent movies,
ing capably picked up the baton of “mature
out there and Liam Neeson has to stop them,
from rail-based mysteries Murder on the Ori-
action hero whose family is in peril” from
and (d) I can barely remember what it was
ent Express and The Girl on the Train to most
Harrison Ford about ten years ago, the Irish-
anyway.
of Neeson’s recent output.
I write, of course, of Liam Neeson. Hav-
man shows no sign of running out of steam
Like Non-Stop, his airborne vehicle, The
It also rests on a criminal conspiracy
(see what I did there?) with this train-based
Commuter benefits from the claustrophobic
so convoluted that it doesn’t just stretch
thriller.
atmosphere of an enclosed space, which we
credibility, it throws it out of the window altogether.
A stylishly conceived opening sequence
know contains the villain. But whodunit? Or
reveals the rhythms of insurance salesman
who is doing it? And what are they doing? As
Michael MacCauley’s (Neeson) life: through-
with Agatha Christie, guessing is part of the
Liam Neeson! On a train! Hurray! Sit back and
out the seasons we see him support his son’s
fun.
enjoy the ride.
None of this matters, of course, because:
The Killing of a Sacred Deer FILM REVIEW
By Debbie Stowe
DIRECTOR: Yorgos Lanthimos STARRING: Colin Farrell, Nicole Kidman, Barry Keoghan ON AT: Elvire Popesco
L
unsettle his audience. Apparently banal events are rendered nauseous by screeching violins. There are repeated visual allusions to The Shining. And just when you’ve started to adjust to the eerie
ike Liam Neeson, fellow Irishman-in-
atmosphere, Lanthimos throws a curveball
Hollywood Colin Farrell has carved
by dropping in a laugh-out-loud line. What is
it’s obvious that the teen has a hold over the
out a niche for himself, playing
going on?
older man.
twitchy bad boys in crime capers and com-
While Dr Stephen Murphy (Farrell) appears
So when Martin begins to insinuate him-
edies. So it’s odd to see him cast as a senior
to have the perfect life – successful medical
self into the doctor’s family and work life,
surgeon in this psychological horror film. But
career, big posh house, beautiful classy wife
we’re prepared for “cuckoo in the nest” dark
this oddity is merely an hors d’oeuvre in the
(Nicole Kidman), and two cute kids – some-
turns, but the full creepiness of the narrative
banquet of weirdness that is The Killing of a
thing is Not Right.
and the boy’s agenda are still shocking.
Sacred Deer.
Not only is there the strange way everyone
The Killing of a Sacred Deer is a bizarre
speaks to each other (small talk at a glitzy
cinematic experience – the only reference that
won’t spoil, but be warned: don’t start watch-
work gala includes: “Our daughter started
comes to mind is the 2014 Dutch psychologi-
ing this film while you’re having your lunch
menstruating last week”), but there is his
cal thriller Borgman, to which it is similar
– to the deliberately stilted dialogue that
unexplained relationship with 16-year-old
in plot and mood. It’s a disconcerting watch
characterizes most of the two-hour running
Martin (Barry Keoghan). Although the pair are
that leaves you with questions you’ll still be
time, director Yorgos Lanthimos sets out to
initially courteous and friendly to each other,
pondering days later.
From the queasy opening scene – which I
www.business-review.eu Business Review | February 2018
RESTAURANT REVIEW 45
HOW STUPID IS STUPID?
W
>>> Aubergine, 33 Smardan, 021 343 7548 <<<
hen the management of Au-
and drips in designer labels, could feel com-
over for its pungent scent of garlic balanced
bergine fell out of the stupid
fortable in a place filled with scruffs. Maybe I
by a white wine sauce. Bullshit, as neither
tree, they must have hit their
went there on the wrong day, but I doubt it.
was present, nor was there any seasoning
heads on every branch on the way down.
So off to eat. Rather than take my best
The evidence is legion to behold. Take the
friend, who is hopelessly spoiled and pam-
tomato base the waiter promised me, re-
name, for example. It is about as inspiring
pered, I took my long suffering Blondie. I
placed by a watery juice of canned tomato.
as calling a restaurant ‘onion’ or ‘potato’.
whatsoever. Also absent was the ‘fresh’
asked for a glass of house red wine, which
In order to perk up this culinary aberration,
But worse still is their menu, which
although it was perfectly acceptable in qual-
I ordered a picture of shaved Parmesan. But
treats the customer like a culinary retard,
ity, the House screwed up by serving chilled
what arrived was a ghastly side of Padano
for every dish has a picture of it to help you
and at RON 22 for a mere glass.
Grano, a cheap, cheating imitation of the
to order. So, there was a plate with long
Blondie asked for water, which kicked in
more expensive Parmesan.
white strands of food. Can you guess what
at RON 9, and for some bread, which relieved
it was? Yes, it was PASTA. And here comes
my pocket of RON 14. The only thing cheap
runaway train, so when Blondie ordered
another brain teaser: a plate of yellow paste
about this place was the place itself. And
her picture of ‘Moroccan chicken’ at RON
with chickpeas adorning it. Oh come on
away to the food.
This meal was going downhill like a
40, the train had flown past the station. It was two baby legs of
people, try hard. Yes, you got it, it was HUMMUS. This pa-
chicken overpowered with
tronizing approach to cus-
cinnamon on a bed of couscous. Get used
tomers who may know
to couscous as more
more than the House gastronomically is
lazy Bucharest chefs
utterly offensive.
discover that it takes seven minutes with
Which brings me
a splash of boiling
to why I am eating
water to re-hydrate
in this doom-ridden
the dried stuff (avail-
joke. My best friend, a
able in all supermarkets),
lady of impeccably good We
taste, who has dined around the world (and who can cook), recommended it. What was she thinking of at the time?
were forced like children to order from pictures, so Blondie ordered a picture of yel-
boiling rice as an alternative option. I must be a sucker for punishment, for I
The décor is abysmal with all the walls
low hummus, which came to us as a watery
ordered a picture of sea bass on another bed
having broken down doors from a construc-
white paste of tahina at RON 35. It is impos-
of sleepy, lazy couscous at a ludicrous price
tion site demolition dumpster nailed to-
sible to screw up hummus, but the House did
of RON 62. Although the fish was perfectly
gether as wooden wallpaper. The furniture
it by omitting the flavor and texture element
cooked, it was served skeletal intactus,
was second hand and mismatched. This
of chickpeas, garlic and lemon. But worse
leaving me to pick the bones out of my
would have been considered urban chic in
was to come: she wanted to scoff a chicken
teeth, rather than savoring the fish. Another
the 1960s but now it is just cheap and tacky
pate from the ludicrously priced RON 40
failure.
– made all the more incongruous with an
for a sample of four miniscule absurdities. I
expensive menu!
expected it to be pink with livers and meat,
this House, irrespective of the raves posted
fragrant with garlic and herbs and tempered
on the utterly discredited Trip Advisor,
with wine, sherry or brandy.
which allows all the mates and family of
But just as tacky was their clientele. All photos: Mihai Constantineanu
as it is much easier than
Typically “Lipscani” people, they were anorak and hoodie folk wearing scruffy
Not a chance. She got a lump of black (yes,
denims and dirty trainers. I wondered if
read that color again) crude composite of
they had checked their rucksacks in at the
mashed chicken meat.
door. Which again amazed me as to why my
I ordered a picture of seafood pasta (at
dear friend, who epitomizes haute couture
RON 42), a simple dish renowned the world
I can find no redeeming features about
restaurateurs to use it as a shoddy hype vehicle.
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | February 2018
46 CITY
Cultural calendar
By Oana Vasiliu
Ne/oW Art Until March 15, Cantacuzino Castle, Busteni
Paintings created using chemicals such as solvents, alcohol, soda, bitumen, acrylic paints and
the most in-demand fado singers in the world. The chanteuse
Caro Emerald concert February 28, Sala Palatului
and this will be an unforgettable
inks will be on show at Cantacuzino Castle. The Ne/oW Art ex-
has said her new album and
The Dutch singer is bringing The
Expect hits from Caro’s record-
hibition, featuring over 40 works
tour, Mundo, are more intimate
Emerald Island Tour to Bucharest
breaking debut album Deleted
by Mirela Iordache and Nadine
than her past musical ventures.
from the UK, where prestigious
Scenes From The Cutting Room
Kseibi, will be open to the public
Tickets cost from RON 110 to
magazine The Upcoming gave
Floor, UK number 1 album The
in the castle’s art gallery. The
RON 300.
the show a five-star review, gush-
Shocking Miss Emerald and, of
ing: “Caro Emerald’s live perfor-
course, the Emerald Island EP,
mance is an absolute spectacle
say organizers. Tickets are priced
– electrifying and exhilarating –
from RON 96-276.
works of the two artists were selected from over 100 registered portfolios.
Ozosep Fair February 10-11, Carturesti Verona
1st of March Martisor fairs Starting from February 24 - Bounty Fair (Casa Universitarilor), Dichisar (Impact Hub)
For fans of Hungarian food, the Ozosep Fair is the place to be.
Martisor, typically small, hand-
The organizers have prepared a
made objects adorned with red
smorgasbord of natural good-
and white threads, will be on sale
ies, artisanal products, tradi-
at several fairs.
tional food (gulyas and kurtos, of
Giving, receiving and wearing
course) and traditional Hungar-
the items is part of the cul-
ian music.
tural practices associated with 1 March, to celebrate the begin-
Mariza concert February 17, Sala Palatului
ning of spring. The red and white
Fado fans will once again be
a safe and harmonious passage
under the spell of Mariza, one of
from winter to spring.
threads were believed to ensure
evening.”