BR 01/2018

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

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

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.”