BR/01/2019 by Business Review

ROMANIAN REAL ESTATE DESPERATELY SEEKS HOMEGROWN INVESTORS

WHERE ROMANIA TALKS BUSINESS January, 2019 / Volume 23, Issue 1

www.business-review.eu

FAR AND AWAY: RUNNING A LOCAL BUSINESS FROM ABROAD

CEC MATE: GHETEA HAILS PATRIOTISM OF ROMANIAN ENTREPRENEURS

CORPORATE VC STARTING TO GAIN GROUND ON LOCAL STARTUP SCENE

EU Presidency:

Navigating troubled waters

www.business-review.eu Business Review | January 2019

EDITORIAL 3 REAL ESTATE

• Editorial •

6 Romanian real estate

Ioana Erdei

desperately seeks homegrown investors

• Editor-in-Chief •

8 Bridge the gap: landmark local office deal dominates 2018 real estate market

COVER STORY

EU Presidency will be felt on the streets of Bucharest

10 Presidency of the EU Council: navigating troubled waters

o claim that in 2019 Romania’s government will face its greatest ‘adulthood’ test since the 1989 Revolution would be an understatement. For six months, Bucharest will be

MACROECONOMY

home to the rotating EU Council Presidency, and some of Europe’s most important decisions will be made here. Twelve years after

18 Economy facing uncertain

joining the EU, Romania has the opportunity to show what it can

end to two-decade growth cycle

20 Romanian GDP poised for

do for Europe.

milestone year in 2019

And lots of voices underline that Romania cannot afford the luxury of ignorance. For most Romanian citizens it is something that takes place at an abstract governmental level. But much of the impact of a responsibility so big will be felt “by the street, on the

MARKETING & COMMUNICATION 34 Communicating the Cente-

streets”.

nary – companies play it safe

Everyone is so busy questioning local officials’ ability to handle

36 Perfectly content: digital

this responsibility that they are forgetting about something more

looks to talent and stories for winning formula

important: Bucharest doesn’t have the infrastructure to handle the amount of offstage visits and events that will take place throughout these six months. Already considered to have the most suf-

CITY

focating traffic in Europe, the capital’s lack of an intelligent traffic light system, the missing ring road to circumnavigate the city, and lack of subway from the airport to downtown will probably be the “talk of the town”. Because Business Review is committed to focusing on local entrepreneurship, I have decided to overlook the government’s performance in the first six months of 2019. I believe that Romania’s entrepreneurs are the best equipped to spot an opportunity where everyone else sees failure. So bring on the cash registers and let’s start making money!

42 Cultural spaces: what’s new downtown

44 Christmas quiz: have you gone Romanian?

46 Cultural calendar

FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | January 2019

4 NEWS

WHO’S NEWS

the Romanian banking system since the end of the 1990s. Over

BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro

the years, its main competitor was BRD – Groupe Societe Generale. So it came as a surprise that it was not BRD that supplanted BCR as the leader of local lenders but Banca Transilvania. Back in 2006, BT was just a small bank with headquarters in Cluj, trying to make its way

Adrian Lacatus has joined PepsiCo as commercial senior director for the East Balkans. He has extensive experience in the FMGC industry, having worked with diverse product categories and geographical areas, over a 14-year career. Lacatus was previously the market director at Mars Bulgaria, and has also had management roles in the commercial, finance and supply chain departments at Wrigley and Heidi Chocolate. He has a Master’s Degree from the Economic Studies Academy in Bucharest.

Daniel Rusen has been appointed Microsoft Romania’s new marketing and operations director. He first joined the software firm in 2011 as a product marketing manager, and took over the distribution lead role a year later. Over the past three years, Rusen has coordinated the Cloud integrated business solutions team, as the business group lead, with the mission of ensuring synergy between marketing and operations. As the marketing and operations director, he will lead the team’s efforts to accelerate the digital transformation efforts for all segments on the Romanian market. page 5

in the system. The lender grew organically over the years, but changed its strategy after it got

Banca Transilvania reached RON 75.3 billion in assets

Local banks look back on tumultuous year with new leading lender

big enough and started to buy small competitors. This strategy was good enough to ensure that BT overtook BCR following the acquisition of Bancpost. Banca Transilvania bought Bancpost from Eurobank in November 2017, but the transaction was

By Sorin Melenciuc

approved by the banking authorities in March this year

Mid-2018 brought a historic milestone in the Romanian

stayed on RON 70.2 billion. Banca Transilvania was still

and the integration of the operations was completed in the second semester of this year.

banking system: Banca Com-

holding onto the top slot at

erciala Romana (BCR) was de-

end-September, when the lender

throned as the largest bank by

posted assets of RON 76.5 bil-

Transilvania is composed of

Banca Transilvania after almost

lion, while BCR kept its second

BT Leasing, BT Direct IFN, BT

a two-decade reign. Banca

position with assets of RON 72.2

Microfinantare IFN, BT Assest

Transilvania reached RON 75.3

billion.

Management, ERB Leasing IFN

billion in assets, while BCR

BCR had been the leader of

The group around Banca

and ERB Retail Services IFN.

Regina Maria opens first private hospital with integrated services in Cluj-Napoca By Razvan Zamfir Regina Maria, the private health-

which started in April 2017, is the

care network, has completed the

largest investment in the coun-

first private hospital with inte-

try’s health network, with a total

grated services in Cluj-Napoca.

value exceeding EUR 18 million.

The hospital, the construction of

The new hospital is located

Regina Maria has been present on the medical services market in Cluj-Napoca since 2008

www.business-review.eu Business Review | January 2019

NEWS 5

Superbet cashes in revenues of over EUR 180 million in 2018 By Aurel Dragan Superbet, the largest sports betting operator in Romania, estimates a turnover of EUR 180 million in 2018. As it celebrates ten years on the Romanian market, the company has reached over 1,000 agencies, operations and offices open to six markets and an online

Dragos Constantinescu will be the new president of Ursus Breweries from January. Before the move, he had been at British American Tobacco for 16 years. He started his career at BAT’s export division in Amsterdam and continued with various high-responsibility roles in the financial field, including national and regional leadership positions in the UK, Belgium, the Netherlands, Sweden, Norway and Poland.

business that generates half of its turnover. The most consistent investments that the company has made have gone into the

Superbet acquired three technology companies in 2018 – two in Croatia and one in the UK (artificial intelligence)

development of its online division. Superbet acquired three

direct operations last year, along

partners by 2021. Business in-

technology companies in 2018

with the boom in the online

vestments were joined by those

– two in Croatia and one in the

business component, were the

in Romanian sport, as in 2018,

UK (artificial intelligence) – for

group’s main milestones this

Superbet sponsored big names

which it paid around EUR 20

year,” says Vlad Ardeleanu,

such as boxers Mihai Leu and

million. A few more million

general manager of Superbet Ro-

Catalin Morosanu.

euros were internally invested

mania. Another direction within

in the integration of the three

the group is the development

in the evolution of Superbet

acquisitions. “Strengthening

of franchise partnerships under

that we will continue in 2019 is

our leadership position in the

the GoBet brand. In 2018, this

to link our brand to supporting

local sports betting market and

division has grown to as many as

Romanian sport through the

expanding operations in Po-

200 partners across the country,

most consistent and long-term

land, where Superbet launched

with the goal of reaching 1,500

initiatives,” said Ardeleanu.

“The second strategic line

in the city center. Currently, the entire medical campus of Regina Maria Cluj has 423 employees, of whom 184 are medical staff. Covering over 7,000 sqm, the building has seven levels: a ground floor, four upper levels and two underground floors. The company has been present on the medical services market in Cluj-Napoca since 2008 and has reported steady increases from year to year. Over 35,000 patients have taken up Regina Maria’s medical subscriptions.

Daniela Bodirca will take over as CEO of UniCredit Leasing from January 1. Over the last ten years she has served as chief risk officer and executive vice president at UniCredit Bank and has 20 years of banking experience in total. Since 2008, she has coordinated the risk management division and the process of implementing the group’s strategy and risk policies across all its entities in Romania.

Batiste Pascalin is the new managing director of Mercedes-Benz Vans Romania. Previously, he was head of marketing management within the firm’s marketing operations for Europe, having managed the European-level marketing operations of the vans division. In his new role, Pascalin will coordinate the activities of Mercedes-Benz Vans Romania and contribute to the division’s mission of shaping the future of mobility in commercial transport, in an efficient and sustainable way.

www.business-review.eu Business Review | January 2019

6 REAL ESTATE

Romanian real estate desperately seeks homegrown investors Commentators are once again asking where Romaniaâ&#x20AC;&#x2122;s real estate entrepreneurs are. Why are they not attracted by development as a means of increasing and diversifying their income? And itâ&#x20AC;&#x2122;s pretty hard to answer. Maybe they have been deterred by the experiences of 10 years ago, when the crisis impoverished and indebted many. Maybe they lack courage or confidence in the market. Or maybe Romania simply does not have enough strong entrepreneurs willing to enter real estate. By Razvan Zamfir

Geo Margescu

Dan Ostahie

Dan Sucu

ne of the most prominent Romanian

and residential projects in Romania. Between

than EUR 150 million, in three phases. The

entrepreneurs in Romanian real es-

2003 and 2008, he developed Europolis Lo-

transaction collapsed without explanation

tate is Geo Margescu, Forte Partners

gistics Park with over 230,000 sqm of prime

one day after it was announced as done. This

CEO, who sold the office project The Bridge

Class A warehouse space, more than twice the

year, the Paval brothers managed, after only

this summer to other Romanian diversifica-

size of the second largest development in the

two months of negotiations, to acquire The

tion-oriented entrepreneurs the Dagas broth-

country. In 2007, he developed the Millenni-

Bridge office from Forte Partners for EUR 200

ers and Adrian Paval, owners of Dedeman, for

um Bank headquarters and in 2008 the Louis

million. It remains to be seen if the deal was

a record local price of EUR 200 million.

Blanc office building, which were sold to both

a one off or whether Dragos and Adrian Paval

local and international investors.

will continue to invest in real estate.

Another remarkable project from Forte

Another entrepreneur who has recently

Partners is Aviation Park, a residential scheme

The Paval brothers started off totally

that will unfold in two stages, each consisting

differently. They built the Dedeman DIY

joined the real estate market is Dan Sucu,

of two building bodies. The first stage consists

chain brick by brick, and when the network

owner of Mobexpert. In conjunction with

of 176 apartments, with a deadline of January

expanded and become the biggest Romanian

Valentin Visoiu of Conarg, Sucu is developing

2019, while the second is due for completion

DIY retailer, thought of other areas in which

the EUR 100 million Bucharest-based Arcadia

at the end of 2019.

to invest.

Apartments Domenii residential project.

Margescu was no stranger to real estate

Last year, the brothers set their sights on

The scheme was launched a year ago and

development before Forte Partners, having

the real estate market and were close to buy-

the first building will be delivered in two

developed several landmark industrial, office

ing the whole AFI Park office project for more

months, as it is currently in the last stage of

www.business-review.eu January Business Review | May 20162019

COVER REALSTORY ESTATE14 7

construction, specifically getting the interior

nian entrepreneurs who have invested in real

percent from a real estate investment is a

and exterior finishes. In parallel, the super-

estate, the total number is in fact relatively

tempting prospect. Ion Tiriac, another major

structure of the next two apartment build-

small, and individuals from other Eastern

investor who has launched several real estate

ings, which will be delivered in May 2019, and

European countries have moved in to fill the

projects, some in various stages of execution,

the basement of the fourth building, are being

gap.

raised EUR 700 million by selling the shares

worked on.

The richest man in Lithuania, Nerijus

he held in UniCredit Bank, money which

Numavicius, along with other Lithuanian

remains in the bank, in likely anticipation

apartments and 30 percent of the space is

investors, has put EUR 90 million into found-

of opportunities arising when the next crisis

green.

ing four hotels in Bucharest. His group, Apex

comes and real estate is offloaded at knock-

Alliance, which owns the Europa Royal Hotel

down prices.

In total, the complex will include 800

Foreign investors, on the other hand,

FROM LORAND SZARVADI TO DANIEL TUDOR

at the entrance to the Old Center, bought the famous interwar building from the Old Mar-

especially Czechs, Slovaks and Poles, are not

It was Lorand Szarvadi who, in 1994, laid

morosch Bank, near the NBR headquarters,

waiting for a crisis, but buying now. They

the foundations of electronics and IT retailer

where he wants to make a high-end hotel.

trust the Romanian market, which is much

Domo, which would go onto become a victim

Meanwhile, Daniel Kretinsky, the Czech

of the crisis. Szarvadi withdrew in 2012 to

and Slovak energy king who has bought as-

invest heavily in real estate and tourism.

sets in Italy and Germany, took over a stake

He owns Balvanyos Resort, a four-star hotel in the Covasna area and a guesthouse

cheaper than their home countries, and gives better returns. Could it be that Romanian entrepreneurs,

in the German retail group Metro, with the

at least those active in real estate, are not

option of becoming the majority shareholder.

thinking big, or are put off by the high sums

The Czech investor did not limit himself

required? It is the same situation, respecting

at Oituz Pass. Balvanyos Resort is a former Best Western, which the entrepreneur has modernized and added a spa area. The investment was EUR 10 million, of which EUR 8.5 million was his own funds and EUR 1.5 million European funding. Another entrepreneur with fingers in more than one pie is Dorin Bob. Since setting up and then building up the Arovit canning factory, the 47-year-old from Satu Mare has developed over 1,200 apartments in Cluj in 10 years, as well as commercial and office space. Another 1,000 apartments are under construction and will be ready over the next

to buying in his own country, but joined the

proportions, in agriculture, where farmers

entire German group, which has more than

are generally reluctant to form associations.

manian retailer, Altex, has also been attracted

30 stores in Romania, with a business of EUR

Entrepreneurs don’t seem to want to pool

by real estate investment, developing the EUR

1 billion. Another Czech citizen, Peter Keller,

their resources to invest, and there are few

25 million Aurora Mall in Buzau. In 2014, he

his country’s richest man, bought the Metrop-

examples of groups of investors banding to-

sold it to NEPI Rockastle to discharge a debt to

olis building in Bucharest through the PPF

gether to develop or buy together. Margescu,

Volksbank, a bank swallowed in the mean-

investment fund two years ago, and this year

who joined forces with Johny Jabra in Forte

time by Banca Transilvania.

acquired Crystal Tower near Victoria Square.

Partners, and Dan Sucu, who got together

It has invested nearly EUR 100 million in the

with Valentin Vişoianu to develop Arcadia

two projects.

Apartments, have not yet inspired many oth-

two years. Dan Ostahie, the owner of the largest Ro-

Finally, the oldest entrepreneur in Romanian real estate seems to be Liviu Tudor, the owner of several office projects, located in

Commentators say the Romanian market

ers to follow them. For this reason, so far, at least, the local

two of Bucharest’s office centers: West Park in

affords quite a lot of opportunities, but they

the west and Novo Park in Pipera.

are seldom taken up by local entrepreneurs or

real estate market remains one dominated by

investors.

foreign companies. While many pundits say

In the 1990s Tudor was involved in the telecom and oil industries, and entered real

The exception is the owners of Dedeman,

this is not a problem per se, in the event of

the Paval brothers. The two stumped up EUR

a crisis, foreign capital tends to flee, looking

200 million to buy The Bridge, the office de-

for outlets in other industries or elsewhere.

WHERE ARE THE ROMANIAN ENTREPRENEURS?

veloped by Geo Margescu’s Forte Partners.

Romanian capital will remain – not from

Notwithstanding the aforementioned Roma-

in euros, some argue that a return of 6 to 8

estate after 2000.

With bank interest rates barely above zero

patriotism, but because it has nowhere else to go.

www.business-review.eu Business Review | January 2019

8 REAL ESTATE

Bridge the gap: landmark local office deal dominates 2018 real estate market The most important event in the Romanian real estate market in 2018 was the EUR 200 million deal between Forte Partners and Dedeman for office project The Bridge – and, significantly, it was made between local players. By Razvan Zamfir

Sonae Sierra became the sole owner of ParkLake

ot only was it the most valuable in

thank Dedeman for choosing to take the first

170 million deal involving Oregon Park, an-

the history of the Romanian market,

step on this market segment with The Bridge

other office complex, developed by Portland

but the deal notably involved two

project,” said Geo Margescu, CEO and co-

Trust in north Bucharest, which marked the

founder of Forte Partners.

entry on the Romanian real estate market of

Romanian companies. “This transaction marks a milestone for

Dedeman was previously involved in a

Lion’s Head, a joint venture between South Africa’s Old Mutual Property and AG Capital.

the local real estate market, but also for the

failed transaction. The firm attempted to take

Romanian economy. We have shown that a

over AFI Park office, close to AFI Cotroceni

Romanian developer can compete with the

mall, but the almost EUR 150 million deal fell

Lion’s Head-Portland Trust transactions ac-

big international groups on a very dynamic

through at the last minute.

count for almost half of the EUR 750 million

market and can close large transactions. We

Another major transaction was the EUR

In fact, the Dedeman-Forte Partners and

value of real estate deals this year. Along with

www.business-review.eu Business Review | January May 20162019

COVER REALSTORY ESTATE14 9

the EUR 53 million paid by CA Immo for the first building of the Campus 6 office project, developed by Skanska, in the west of the city, they make up close to two thirds of the total value.

INTEREST RATE RISES COOL INTEREST The 3M ROBOR, the indicator used to set the interest on real estate loans, started to move above 0.8-0.9 percent in 2017 around September 2017 and reached 3.04 percent in December 2018. These climbing borrowing costs put the brake on residential sales over the last few months of the year but, according to a Re/Max study, demand has started to increase. This rising demand has driven up house prices both in Bucharest and regional centers: Cluj-Napoca (up by just under 1 percent to an average of EUR 1,500/sqm), Iasi (up 2.9 percent, from EUR 1,016/sqm to EUR 1,045/sqm), Timisoara (up 0.3 percent, from EUR 1,200/

Dan Sucu invests EUR 100 million in Arcadia Apartments

sqm to EUR 1,204/sqm). In spite of these increases, Romanians are still among the nations with the lowest housing costs in the EU, with the only countries where house buyers pay less than here being

spends RON 42 in a discount store. Modern convenience stores have consoli-

1 million sqm. Meanwhile, eMag, the largest online retailer in Romania, has finished the

Bulgaria (69 percent below the EU average)

dated their position when it comes to home

construction of the largest warehouse in

and Poland (63 percent under). At the oppo-

shopping, as well. These stores were chosen

South-East Europe, and this year’s Black Fri-

site end are Luxembourg (where buyers shell

by nearly 4 out of 10 households for home

day logistics were supported by the new bulk

out 63 percent above the EU average), the UK

shopping, 15 percent more than last year.

warehouse, built in a record 11 months.

(59 percent over) and Denmark (53 percent over).

The increase in the number of shoppers

With a surface area of 126,000 sqm, as

choosing these stores also comes as a result

large as 20 football pitches, it has a capacity of

of the high level of expansion that continued

2 million large and medium volume products.

MODERN RETAIL TIGHTENS GRIP

during the first nine months of this year. In

Finally, Belgian industrial park developer

Modern trade channels have strengthened

the home shopping category, all large con-

VGP has acquired a land plot of 230,000 sqm

their dominant position on the market and

sumer product segments grew.

in Brasov, in one of the largest industrial de-

currently account for almost 60 percent of all household consumer spending. Among the modern retail channels, hyper-

The other major change on the retail market was the switching of roles of hypermarkets and entertainment & foods courts,

velopment land purchases outside Bucharest in the last five years. VGP aims to develop a logistics park of

markets remain the main destination for the

with the latter having effectively become the

more than 100,000 sqm which will be deliv-

family shop, but they continue to lose ground

anchor in all big malls.

ered in 12 to 18 months.

”In Romania, this increased attention to

The company already owns VGP Park

the F&B sector is readily recognizable, and the

Timisoara, with an area of 270,000 sqm and

the most dynamic growth in market share

percentages have started reaching 8-10 per-

over 120,000 sqm GLA, and VGP Park Sibiu,

between January and September 2018. The

cent, effectively turning them into the new

on 97,000 sqm and with more than 45,000

purchasing frequency increased most in this

mall anchors, replacing hypermarkets, which

sqm GLA.

type of modern commercial format – up by

used to be the main tenants in such proper-

6 percent compared to January-September

ties, ”said Corina Stamate, center manager at

Sierra taking over whole ParkLake mall after

2017.

JLL.

it acquired the 50 percent stake owned by

to other formats. Supermarkets, on the other hand, had

Discount stores had the second biggest

The industrial/ logistics market exceeded

The story of 2018 could close with Sonae

Caelum Development in the joint venture that

gain in market share. This is mainly due to the

3.4 million sqm this year. CTP, one of the big-

developed the mall for EUR 180 million, back

higher outlay per visit: on average, a family

gest players on the sector, is poised to exceed

in 2016.

10 COVER STORY

www.business-review.eu Business Review | January 2019

COVER STORY 11

PRESIDENCY OF THE EU COUNCIL: NAVIGATING TROUBLED WATERS A Brexit deadline in March, European Parliament elections in May, managing the current agenda for the development of the legislative framework – just a few of the challenges that Romania faces during its six months charged with the Presidency of the EU Council.

By Aurel Dragan

n January 2019, Romania will for

institutions and the member states of

the first time take over the Presi-

the European Union,” said Ministry of

dency of the EU Council – one of

Foreign Affairs (MAE) officials.

the main European institutions in Brus-

Romania’s mandate is marked by

sels, with important legislative and

two important aspects: the holding of

executive powers. For half a year, Ro-

this role for the first time and elections

mania will be at the center of European

for the European Parliament.

decision-making, playing an important

“The assumption of the Presidency

role in spearheading efforts to develop

[…] requires an exceptional effort to

and consolidate the European project

consolidate a national vision on the

and strengthen the cooperation of

future of the European Union and to

member states.

increase the administrative capacity

The rotating Presidency of the EU

needed to exercise this mandate,” says

Council represents an opportunity for

the MAE. “The Presidency of Romania

the holder to reaffirm European com-

must act as an honest broker, respon-

mitment and contribute directly to the

sible for advancing the Council’s ne-

evolution of the bloc. As this involves

gotiations on EU legislation, ensuring

the organization of numerous high-

the continuity of the EU agenda and

level events, the state whose turn it is

good cooperation between the member

enjoys good external visibility. This can

states and European institutions.”

be leveraged for economic purposes, commercial or investment, tourism and cultural promotion. In addition, national efforts at the helm of the EC Presidency have long-term effects through the top-level contact with national politi-

THREE MISSIONS Romania’s first task is to plan and conduct meetings within the various Council configurations (with the exception of the Foreign Affairs Council) and its working groups. The Presidency means, first and

cal leadership, long-term

foremost, the duty to pro-

consolidation of the public

mote, in the meetings that

administration and the

Romania will be holding in

visibility afforded to the

Brussels, European inter-

country as it hosts elite

ests by ensuring a proper

European political and

bargaining framework.

technical meetings. “Holding the EU Council Presidency will be a

The efforts will mainly focus on presenting compromise proposals,

first for our country and an opportunity to demonstrate our capacity

capable of leading to the adoption of common positions of member

to fulfill such an important task through good planning and coordi-

states. The presiding country should also act as a facilitator, being

nation at national level as well as a sustained dialogue with the EU

responsible for advancing the work of the Council on European

www.business-review.eu Business Review | January 2019

12 COVER STORY

legislation, ensuring the continuity of the EU agenda, well-organized

to 30 June 2020. The three countries’ program includes an introduc-

legislative processes and cooperation between member states.

tory section defining the framework for action, the mission and

The second mission is to represent the Council in relations with

the contexts of the three presidencies. The thematic sections of the

the other Union institutions, in particu-

document were built around the struc-

lar the European Commission and the

ture of the Union’s Strategic Agenda in

European Parliament. In its work, the

Times of Change, agreed at the Euro-

Presidency cooperates closely with the

pean Council meeting on 27 June 2014,

President of the European Council and

presenting the common objectives

with the High Representative of the

agreed by the three presidencies for

Union for Foreign Affairs and Security

January 2019 - June 2020, on the fol-

Policy.

lowing five priority areas: jobs, growth

The third mission is to represent the

and competitiveness; empowering and

EU in dialogue with external partners

protecting citizens; energy and climate

through the temporary replacement of

policies; freedom, security and justice;

the High Representative in situations

strengthening the role of the EU as a

where the latter cannot participate.

global actor.

The concrete obligations of the role

The MAE signed the program at the

translate into providing the necessary

General Affairs Council in Brussels at

resources for the holding of ministerial

the beginning of December. According

meetings in Brussels, at ambassadorial

to the custom, the Delegate Minister

level and over 150 working groups at

for European Affairs George Ciamba

Council level. In this format, 200-300

presented the main elements of the

legislative dossiers are negotiated

EU Council’s Joint Working Program

during over 1,500 formal and informal

for the next 18 months on behalf of the

meetings.

presidents of Romania, Finland and

For practical purposes, the Presidencies are grouped in a trio, which provides a coherent overall framework for the work of the Council for an uninterrupted period of 18 months. Recent presidencies have evolved in a complex European and international context, with typically three situations:

Croatia. “There are three main objectives for the presidency trio: the maintenance of European unity and the consolidation of our European project, essential in the context of the Brexit process and of the elections for European Parliament; respecting agreed political priorities at Euro-

1) management of the current

pean level; and effective commu-

agenda for the development of the

nication on the future of Europe,”

legislative framework;

said Ciamba.

2) managing responses to current

The delegate minister ex-

/ known crises (financial system,

pressed Romania’s commitment,

migration, etc);

as the first presidency of the

3) managing responses to un-

current trio, to ensure an easy

known crises, difficult to predict at

transition from the Estonia-

this time.

Bulgaria-Austria trio and to take all necessary steps to advance the

THE THREE-COUNTRY MANDATE

European agenda, and the support

The member states serving as

of member states and European

president work in groups of three,

institutions in this regard.

called trios, in a system introduced by the Treaty of Lisbon in 2009. The trio sets long-term goals and

KLAUS IOHANNIS: ROMANIA IS READY

prepares a common agenda, determining the topics and major issues

Romania is prepared to hold the presidency, assured President Klaus

to be addressed by the Council over 18 months.

Iohannis, speaking in Vienna at the Europe-Africa High Level Forum.

Based on this program, each of the three countries prepares its

“We are ready and we will show that we can have a good presiden-

own, more detailed, program for the six months of its mandate.

cy,” said Iohannis. “This forum is extremely important and comes at

Romania, Finland and Croatia will work together to establish long-

the right time, as the Austrian Presidency ends and we are already

term objectives and to prepare a common agenda for 1 January 2019

entering the Romanian Presidency. The relationship between Europe

www.business-review.eu Business Review | January 2019

and Africa is growing and we want to transform it from a relation-

COVER STORY 13 “The President of Romania reaffirmed the commitment and

ship in which Europe has provided development aid into a relation-

support of our country to the sovereignty and territorial integrity of

ship that runs between equal partners willing to cooperate and

Ukraine, within its internationally recognized borders,” said officials.

develop together,” said Iohannis. At the European Meeting in Brussels,

The theme of climate change was also addressed in the context of the

he also highlighted the importance of

recent presentation by the European

the Cohesion Policy and the Common

Commission of the proposed strategy

Agricultural Policy in relation to the

in this area, entitled A Clean Planet for

EU’s new budget.

All. Debates on this issue will continue

“In the debate on the future multiannual budget of the Union, the

during Romania’s tenure. On the security and defense front,

President of Romania expressed his

the European Council welcomed

thanks for the efforts made by the

progress, including the implementa-

Austrian Presidency in this dossier,

tion of PESCO, strengthening military

underlining that as a state that will take

mobility and negotiations on the

over the presidency of the EU Council

European Defense Fund, and endors-

on 1 January 2019, our country will act

ing the PSAC Civil Compact. President

as honest broker, and will continue

Iohannis welcomed the adoption of

the same sustained pace of talks with

the Compact, highlighting the added

a view to reaching progress in negotia-

value of the EU in the field of civilian

tions,” commented a spokesperson for

crisis management, a spokesperson for

the president.

the presidential administration said.

Iohannis welcomed the establish-

European leaders also exchanged

ment as a temporary benchmark of

views on the outcome of the dialogue

autumn 2019 for an agreement at the

and consultations with citizens of

level of the European Council, saying

member states, based on the report

that this commitment would gener-

prepared by the Austrian Presidency in

ate an ambitious pace of negotiations, including during Romania’s presidency. “From the point of view of the priority objectives for our country,

co-operation with Romania as future holder of the rotating presidency. “The President of Romania welcomed the results of the citizens’

as a member state, in relation to the new budget, the President of

consultations on the future of the Union, emphasizing that our

Romania pointed out the importance of the Cohesion Policy and

country has supported this initiative from the outset, very useful

Common Agricultural Policy, as also supported by other member

in shaping the expectations of European citizens in the context of

states. Klaus Iohannis stressed the importance of a realistic approach

reflection on the future of the EU and in view of the informal Sibiu

in future discussions, namely the

Summit of May 2019,” said of-

need to equally accommodate the

ficials.

new priorities and challenges of

At the larger Euro Summit,

the Union through this new bud-

European leaders continued

get,” added officials.

discussions on deepening the

Romania will also take over the

Economic and Monetary Union

responsibility for managing the

(EMU). Iohannis welcomed efforts

internal dimension of migration,

to strengthen the EMU and reaf-

and will continue to work towards

firmed his country’s support for

identifying solutions.

this goal.

As far as the Union’s external

As for Brexit, European lead-

relations are concerned, European

ers agreed that the UK and EU

leaders discussed themes related

withdrawal agreement cannot be

to the EU Summit - League of Arab States to be held on 24 and 25

reopened. President Iohannis fully supported the EU 27 approach

February.

and indicated that Romania aims to start discussions on future EU-

At the same time, members of the European Council approached

UK relations as soon as possible in its tenure.

recent developments in the Azov Sea and the Kerch Strait, as Russia uses its military force against Ukraine, expressing “deep concern

VIORICA DANCILA: FOUR PILLARS FOR THE MANDATE

over the tensions in the region”.

For the prime minister, Viorica Dancila, the priorities of Romania’s

www.business-review.eu Business Review | January 2019

14 COVER STORY

Presidency are organized in four pillars: Europe of convergence, Eu-

national systems and structures. We are mainly interested in protect-

rope of safety, Europe – global actor and Europe of common values.

ing citizens, companies and public institutions in the online space

She added that the first pillar – Europe of convergence – is based on

and increasing the Union’s resilience to cyber attacks. Cybersecurity

“growth, cohesion, competitiveness, connectivity”.

can no longer be considered optional, so any project concerning

“Convergence and cohesion to ensure sustainable and equitable

the information society must take into account the cyber-security

development for all European citizens are essential for promoting a

component,” the premier underlined. She also raised another impor-

united Europe and for increasing the EU’s global competitiveness.

tant topic on the European agenda – migration. “It is an extremely

These must be milestones of

difficult issue that has failed

action at European level, while

to bring together a unitary

at the same time reflecting

position of the member states,

Romania’s interests as an EU

and we are therefore planning

member state. The decisions

to formulate new solutions

on the future of European

that guarantee efficient and

policies must be reflected in

sustainable management. We

the financing priorities of the

are particularly interested in

Union. As such, the Romanian

strengthening the external

Presidency of the Council of the

borders of the EU, including by

EU will contribute to projecting

strengthening the operational

the next Multiannual Financial

capability of the European Bor-

Framework post-2020 in view

der and Coast Guard Agency. It

of reaching the targets in the

is also important in our view to

next seven years so as to ensure

promote cooperation with the

the balance between policies

countries of origin and transit

generating growth and conver-

and I am convinced that the

gence in the community space,”

most effective way to address the issue of migration is to

said Dancila. According to her, Romania’s holding of the presidency aims to “advance economic, financial and fiscal work in order to stimulate

combat its deep root causes, the source of this phenomenon,” said Dancila.

growth and investment and support structural reforms” and to contribute to “the strengthening of the EMU.” On the same theme of convergence, she continued, the Romanian Presidency is interested in the social dimension through the implementation of the European Pillar of Social Rights. Dancila added that another direction is “the promotion of research and innovation” and, first of all, “digitization and connectivity as key factors in increasing the competitiveness of European industry”. “The digitization of European industry will be a first priority national topic to be promoted at EU level. We will stimulate the diversification of the current industrial base in the EU by promoting digitization and implementing artificial intelligence in industrial processes,” she said. The prime minister noted that another priority is connectivity. “Ensuring real convergence (...) depends directly on making connections of all kinds, especially in less developed areas. Connecting these regions to the rest of Europe in all possible forms through transport, energy or digital networks is one of the most secure and most efficient ways of development. Connectivity ensures the functional circulation flows of commodities, natural resources, energy and human resources, essential for economic development,” said the PM. Dancila also expanded on another pillar – Europe of safety. “With regard to internal security, we will focus on increasing cooperation and inter-operability at European level between specific

Romania has EUR 27 billion allocated through the cohesion policy Romania will hold the EU Presidency at a challenging moment. This is why it is crucial that in the next six months we use all the opportunities to advance in the negotiation of key dossiers, including those regarding the 2021-2027 cohesion policy. I am glad that cohesion policy is a priority for the Romanian Presidency - a clear proof of the impact this policy of solidarity has in Romania. I would like to remind you that we are finalizing the 2007-2013 financial period with a 91 percent absorption rate of the allocated European funds, thus creating over 51,000 jobs, supporting thousands of SMEs, upgrading schools, hospitals, social institutions and investing in transport. For the 2014-2020 programming period, the European Commission is working with Romanian authorities to accelerate project implementation and prepare a solid portfolio of projects that will improve the lives of Romanians. I can assure you that the European Commission will stand by Romania after 2020 as well. In our proposal for the 2021-2027 budget, Romania has EUR 27 billion allocated through the cohesion policy, which means 8 percent more than in the current period; and at the national level, it represents a 13 percent increase in financial aid for every Romanian citizen. Source: Corina Cretu, European Commissioner for Regional Policy

www.business-review.eu Business Review | January 2019

ADVERTORIAL 15

“Covasna, an ECO community” – an environmental campaign supported by FEPRA International! for more than a year, with very good results, we can have a serious, prompt and well-informed partnership,” said Ambrus Jozsef, the Director of the Association for the Inter-communitary Development of Integrated Waste Management in Covasna County. Specifically, starting November 20, 26 info points will be set up and 50,000 information materials will be distributed, so that citizens can be efficiently informed about the way the waste should be separated, as well as the collection days and the way the sanitation operator will ensure the proper takeover of the waste. “Our organisation is experienced in the management of packaging waste, as we represent over 500 Romanian producers for whom we fulfil the recycling and recovery obligations for more than 270,000 tonnes of packaging per year. Furthermore, we want The Association for the Inter-communitary

Association for the Inter-communitary Devel-

to support citizen awareness campaigns,

Development of Integrated Waste Manage-

opment of Integrated Waste Management are

since without the support of citizens and

ment in Covasna County, together with

allocating significant resources to information

local public authorities, Romania cannot

FEPRA International, announced the launch

and awareness campaigns aiming to change the

be a clean country and it cannot fulfil its

of the “Covasna, an ECO community” cam-

mindset of Covasna County inhabitants regard-

recycling targets as an EU member state.

paign, which involves the implementation of

ing the proper management of packaging waste.

For example, in this period, together with

a programme to inform and raise awareness

Campaign results have been good, and citizens

another Inter-communitary Development

among citizens regarding the need for the

have been receptive to our messages, but we

Association, we’re carrying out a similar

selective collection of packaging waste. The

must continue what we’ve started because we

campaign, and we will certainly support ADI

announcement was made in a press confer-

are aware that a clean land is a rich land. But

SMID Covasna to serve the citizens of this

ence that took place on Friday, November 16,

the people who irresponsibly throw waste into

county as best as possible, on the long term,”

at the Covasna County Council.

nature, without thinking of the consequences of

said Roxana Sunica, Marketing, Communica-

their actions, are the biggest enemies of our chil-

tion and Public Affairs Manager at FEPRA

carried out between November 16 and

dren’s future,” said Tamas Sandor, the president

International.

December 12, 2018, in the following areas:

of the Covasna County Council.

“Covasna, an ECO community” is being

Sfantu Gheorghe, Targu Secuiesc, Covasna,

“Considering the legislative changes imposed

FEPRA International is a joint stock company authorized to take over waste

Intorsura Buzaului, Baraolt and the 40

by OUG 74 and the Minister’s Order which will

management responsibility for producers

communes in the county. In this interval,

regulate the approval procedures and the

and importers who place packaging and

volunteer and collection teams will inform

general operation of Responsibility Transfer Or-

packaging waste on the Romanian market,

citizens at collection points through materi-

ganisations (RTOs), our association has decided

in order to fulfil the country’s legal waste

als on how waste selection should be done

to work with the best organisations. As we were

recycling and recovery targets. The extensive

in the household based on the four waste

contacted by FEPRA International, we provided a

producer’s responsibility system is the way

categories (household waste, plastic/alumi-

positive response to the opportunity to organise

through which Romania wants to achieve

num, glass and paper), as well as show them

and carry out this campaign, and we hope for

the country targets it agreed to by signing

where they can find collection points in

it to be a long-term collaboration. Considering

the European Union Accession Treaty.

other areas.

that the Integrated Waste Management System

For more information about the company,

(SMID) in Covasna County has been operational

visit FEPRA’s website: www.fepra.ro

“The Covasna County Council and the

www.business-review.eu Business Review | January 2019

16 BUSINESS

Cluj the boss? Western town squares off against capital Cluj-Napoca has been flexing its muscle in recent years, attracting a growing share of business. In response, EY has carried out a comparative analysis of the Transylvanian town and the capital, Bucharest. By Aurel Dragan

Cluj-Napoca is the capital’s main competitor with its high standards of living and management of the labor force

ranking that measures the quality of life in 72 cities in Europe, 26 places higher than Bucha-

with local universities based on innovation,

Bucharest’s and Cluj-Napoca’s demographics,

rest. Cluj also scores better than the capital for

technology, research, and IT.

education, economics, culture and tourism, to

safety, medical facilities, transport services

inform both residents and those considering

and traffic management, according to Num-

der the economic development of the capital,

starting a business in one of the towns.

beo center data. The cost of rent in relation to

with Bucharest’ GDP growth slowing to 2.3

income is a problem in the Transylvanian city,

percent over the next five years, versus 7.2

itants, and is the most important industrial

almost two points higher than in Bucharest

percent in 2017, according to Oxford Econom-

and commercial center in the country. Accord-

(12.6 versus 11).

ics estimates. The capital’s active population

nalysis by professional services firm

Cluj-Napoca, however, came 29th in a

ants and tourists, developing a strategy to

EY aims to identify the main dif-

stimulate the economy through partnerships

ferences and development rates of

Bucharest has the largest number of inhab-

ing to Oxford Economics, in 2017 it was one of

The data analyzed for the two towns

However, a shrinking population will hin-

has fallen by about 3 percent in the last few

the EU’s best-performing cities, with higher

confirm Cluj as the capital’s main competitor

years, and it is expected to post the same rate

economic growth than the European average.

with its high standards of living, management

of decline for the next five years, which will

This is largely due to the service sector, which

of the labor force through the low unemploy-

have repercussions on job creation in the city.

is increasingly important for the capital, with

ment rate, increase in the number of employ-

“Given that the tax system in Romania is

a 23 percent share of GDP in 2017.

ees, and implicitly in the number of inhabit-

unitary, the authorities’ level of taxation is

www.business-review.eu Business Review | January 2019

very limited, and the competition for attract-

BUSINESS 17

EDUCATION

more. But Bucharest is more expensive for

ing investments takes place in sectors other

utilities (water, electricity, 3 percent) and din-

than taxation. It is therefore possible that a

ing out in restaurants (20 percent). Despite having six times more homes than

better geographical location (proximity to the country’s western border) and local infra-

in Cluj (850,000 versus 142,000) due to its

structure policies are decisive factors leading

larger size, the capital does worse in terms of

to the spectacular growth of Cluj compared to

living space. Houses in Bucharest are on aver-

Bucharest. In addition, the evolution of other

age about 4 sqm smaller. And when it comes

major cities in Romania, Timisoara and Iasi, is

to green space, the citizens of Cluj enjoy more

already eye-catching, while Oradea and Alba

of it, with 4 sqm extra per capita (21.4 sqm in

Iulia are also very strong,” says Gabriel Sincu,

Both cities have a steady flow of students, but

associate partner in the department of tax and

Bucharest, with more than 30 universities,

legal assistance at EY Romania.

has the most graduates with the potential to

Last but not least, the comparison between

Bucharest versus 25.3 sqm in Cluj-Napoca).

BUSINESS

join the labor market.

Bucharest and Cluj-Napoca brings forward information relevant to the economic envi-

WORKFORCE

ronment, both for those who are thinking of opening a business on their own or perhaps choosing a place to develop a career. Business Review highlights some of the conclusions of the research carried out by EY Romania based on the latest data from the National Institute of Statistics (INS) and the National Trade Register Office (ONRC).

The largest increase in the registration of new firms and sole traders in 2017 took place in

POPULATION

In Cluj, the percentage of employees in the

Cluj county, up by 50 percent over 2016 (5,674

total population is higher than in Bucharest

versus 8,532). Although the rise is higher in

(50 percent versus 43 percent), even in IT. The

Cluj (50 percent versus 23 percent), 70 per-

Transylvanian city remains the leader for the

cent more companies were set up in absolute

number of employees in the field relative to

values in Bucharest.

its population (1.9 percent versus 1.4 percent). In the five years covered, the local unem-

TOURISM

ployment rate was higher in Bucharest, keeping steady throughout the analyzed period (1.3 in 2017), compared to Cluj-Napoca (0.7 in 2017).

REAL ESTATE Population growth is at a more stable pace in Cluj than in Bucharest. The capital’s population has fallen over the last five years analyzed (2013-2017) by approximately 55,000 inhabitants (0.7 percent). However, the number of inhabitants in Cluj-Napoca increased by about 2 percent during this period. Bucharest imports human capital by at-

Similarly, although it leads a detached coun-

tracting the largest number of immigrants

try in terms of number of tourists, the capital

compared to other cities, while Cluj records

remains behind Cluj in increasing their

a small loss in this field. The increase in the

number from one year to another (relative

Cluj population in the last five years is based

The highest rents are in Cluj-Napoca – about

growth in Bucharest was 23 percent versus 50

mainly on natural growth. By comparison, the

3 percent higher than in Bucharest. Also in

percent in Cluj). However, the capital is more

negative natural increase registered in Bucha-

Cluj, a square meter of residential property on

attractive from a cultural point of view and

rest has shrunk its population.

the outskirts of the city costs up to 20 percent

has many more attractions to visit.

www.business-review.eu Business Review | January 2019

18 MACROECONOMY

Economy facing uncertain end to two-decade growth cycle Romania is nearing the end of a two-decade cycle of fast economic growth and closing the gap with Western Europe. But analysts say its current wage-led growth government policy is now running out of steam – and money – to maintain the course of the country towards greater development and welfare. By Sorin Melenciuc

Viewed from Western Europe, Romania still looks like a poor country

any countries’ history includes glo-

world” is poor in its own and unique way,

than EUR 2,000 per capita), while in 2017 the

rious periods of fast development

which often evolves, and Romania now looks

values hit EUR 188 billion, or EUR 9,600 per

and virtuous economic cycles.

poor in quite a different way than it looked 20

capita, and will exceed EUR 200 billion or

years ago.

EUR 10,000 per capita this year.

In France, the three decades following

World War II are called “les trente glorieuses”

In fact, analysts say Romania has evolved

Even compared with its neighbors, Ro-

(the glorious thirty) as they were a period of

from a “very poor country”, prior to 2000, to a

mania has performed very well during the

rapid advancement, low unemployment, ris-

“poor country”, until EU accession, and then

last couple of decades. In 2002, Romania

ing welfare and falling poverty – an invisible

to a “not so poor country” since 2007.

had a GDP per capita of EUR 2,300, similar to Serbia, while Hungary registered EUR 7,100

revolution, some experts say.

THE GLORIOUS 20

and Bulgaria EUR 2,200, according to Eurostat

times in the past, but very few periods com-

Since 2000, the first year of the current

data.

pare to the last two decades in terms of real

cycle, Romania has experienced 17 years of

development.

GDP growth and only two years of economic

per capita was up by 4.2 times to EUR 9,600,

Romania has also experienced some good

Fifteen years later, in 2017, Romania’s GDP

decline (2009-2010), and the real convergence

while Hungary had marked a gain of 79 per-

Romania still looks like a poor country, say

was among the most impressive on the Euro-

cent to post EUR 12,700, Bulgaria’s indicator

pundits. But in the economy, like in society,

pean continent.

was up by 3.3 times to EUR 7,300 and Serbia’s

Even so, viewed from Western Europe,

there are more than fifty shades of “poor”. Every country outside the “developed

The numbers look almost incredible. In 2000, Romania’s GDP was EUR 40 billion (less

by 2.4 times to EUR 5,600. Even Poland, seen as a top economic per-

www.business-review.eu Business Review | January 2019

MACROECONOMY 19

former in the region, saw its GDP per capita

made progress within the last ten years, but

a possible world crisis would automatically

climb only by 2.2 times between 2002 and

there are still huge differences and Romania

affect Romania.

2017, from EUR 5,500 to EUR 12,200.

doesn’t have a coherent economic develop-

In terms of purchasing parity standards, used to better compare nations given the

“So there is the possibility – the slowdown

ment strategy,” BCR chief economist Horia

has already begun – there will be a reces-

Braun told Business Review.

sion, but it will not be of the magnitude of

differences in prices, Romania entered the EU

Historically, few nations outside Europe

2007-2008-2009. And it must be underlined

posting 39 percent of the EU average (in 2006)

and North America have managed to become

that the evolution of the Romanian economy

while the indicator was up to 63 percent last

developed and industrialized, and mostly

is linked to the evolution of European

year. During the same period, Serbia experi-

in the 20th century. Japan, South Korea,

economies, to what is happening in the global

enced an increase from 32 to 37 percent of the

Singapore and, more recently, some oil-rich

space, because we have an open economy,”

EU average, Bulgaria from 37 to 49 percent,

Arab countries have achieved the status of

Daianu said in a recent speech.

and Hungary from 61 to 68 percent.

developed economies using a variety of tools.

According to Eurostat, Romania’s 63

In the case of Romania, the problem is

Despite the government’s optimism, its current wage-led growth strategy needs

percent of the EU average in 2017, ranks above

that its economy and society became only

money to finance it – and the government is

Bulgaria (49 percent) and Croatia (61 percent),

partially industrialized and modern during

rapidly running out of resources.

and approaches Latvia and Greece (both 67

the 20th century.

percent), Hungary (68 percent) and Poland (70 percent). Experts point out that, within a decade of

The government has delayed approv-

In order to achieve its goals in the 21st

ing the public budget for the next year and

century, pundits say Romania needs good –

some officials have indicated that a freeze

and less populist

joining the EU, the Romanian economy has

– policies to

grown quickly despite the financial crisis and

sustain its de-

has even managed to become the largest in

velopment.

the region. And yet over the very same period millions of Romanians have left the country

“Mexico on this side of the wall” model, with

NO MORE MONEY FOR WAGE-LED GROWTH

Romania being a poor country situated close

During the last

to a very rich area – Western Europe – and

few years, the

becoming a cheap labor source, without the

government has adopted a strategy of wage-

of pensions and public wages until Septem-

restrictions on workforce movement seen in

led growth, stimulating household consump-

ber 2019 could be on the cards due to fiscal

the US/Mexico. But this model has some ad-

tion and GDP growth rates, but this model has

constraints. According to experts, Romania’s

vantages in terms of economic achievements.

generated larger fiscal and current account

public spending on wages and pensions has

Last year, Romania outpaced Greece for

in search of a better life in Western Europe. Some experts describe this situation as a

deficits. This strategy has reached its limits,

this year exceeded 60 percent of total spend-

GDP for the first time since the 1970s, to

experts warn. During the first nine months

ing, largely above the levels of the financial

become the biggest economy in the Balkans

of this year, the Romanian economy grew by

crisis.

(Turkey excluded).

4.2 percent year-on-year and by 4.3 percent in

Romania’s GDP recorded a growth of 6.9 percent in 2017 to reach EUR 187.9 billion, while Greece’s GDP was EUR 180.2 billion,

According to Business Review’s calcula-

the third quarter, but there are already strong

tions, public spending on wages and pen-

signals of a slowdown.

sions reached 58.7 percent of total budgetary

“Productive investment declined by 1.1

spending in 2017 (RON 162.2 billion out of

percent year-on-year (in Q3), an evolution in-

RON 276.1 billion), above the levels seen

fluenced by the signals of an end of the post-

before and during the financial crisis – 52.4

END OF THE CURRENT ECONOMIC CYCLE

crisis economic cycle and the accumulation of

percent in 2008, 57.3 percent in 2009 and 55.1

Gross domestic product is still a widely used

challenges in the sphere of internal macroeco-

percent in 2010.

index to measure the size of national econo-

nomic balances (public finances and current

mies, but many experts say that it’s not only

account),” Banca Transilvania analysts said in

sions in 2008 and 2009 was one of the main

size that matters.

a recent report.

causes of the huge budgetary constraints in

according to Eurostat data.

Even though Romania is now the biggest

For 2019, many economists forecast a

Rising public spending on wages and pen-

Romania during the financial crisis, which

economy in its subregion, it has a lot of prob-

slowdown of the economy to growth rates be-

ultimately led to the EUR 20 billion salvage-

lems in terms of its quality.

low 4 percent, but even these levels depend

loan from international financial institutions

on the health of the European and global

in 2009 (the IMF, European Commission

nian economy is towards producing goods

economy. According to National Bank of

and World Bank) and to the 25 percent cut to

and services with low-value added. We’ve

Romania (BNR) board member Daniel Daianu,

public sector salaries in 2010.

“Structurally, the direction of the Roma-

www.business-review.eu Business Review | January 2019

20 MACROECONOMY

Romanian GDP poised for milestone year in 2019 Romania is close to hitting two major thresholds this year in its economic development, as the gross domestic product (GDP) growth rate acceleration in the third quarter has increased its chances of reaching total GDP of EUR 200 billion and a per capita figure of EUR 10,000. By Sorin Melenciuc in 2017 than Greece’s, estimated at EUR 180.2 billion, for the first time since the 1970s, putting it 16th among the 28 EU member states. But Romania remained a smaller economy than the Czech Republic (EUR 191.6 billion in 2017) and Portugal (EUR 194.6 billion). This year, Romania’s GDP is estimated to exceed EUR 200 billion (or even EUR 204 billion according to the government’s forecast body, which enjoys little credibility) and the country has a chance to overtake Portugal in terms of its economy size. But the Czech Republic is growing faster and will remain a larger economy than Romania over the next few years, according to independent estimates.

In terms of GDP per capita in purchasing power standards (PPS), Romania posted the largest increase in 2017 in EU

CLIMBING THE EU LEAGUE TABLE In terms of GDP per capita in purchasing power standards (PPS), Romania posted the larg-

he other EU member states from the

10,000. Romania is now the seventh largest

est increase in 2017 among the 28 European

eastern bloc, with the exception of

EU nation in terms of population but ranks

Union member states and jumped one place

Bulgaria and Romania, surpassed the

16th in terms of GDP – or 27th if we look at the

in the bloc’s ranking, from the second-poorest

EUR 10,000 GDP per capita-threshold years

more relevant GDP/capita index, with around

nation to the third-poorest, with 63 percent of

ago, but Romania had remained below the

EUR 9,600 per inhabitant in 2017.

the EU average, according to Eurostat data.

PASSING PORTUGAL

bourg (posting 253 percent of EU average in

56.8 billion, is the largest ever recorded in the

Last year, Romania recorded growth of 6.9

2017), Ireland (184 percent), the Netherlands

country and exceeds the values registered in

percent in real terms, to RON 858.7 billion

and Austria (both 128 percent). Ireland’s GDP

the same quarter by the Czech Republic (EUR

(EUR 187.9 billion), according to the National

is artificially increased following the reloca-

52.5 billion) and Portugal (EUR 51.3 billion),

Institute of Statistics (INS).

tion from outside the EU to Ireland of the

The EU’s wealthiest nations are Luxem-

milestone until now. However, Romania’s GDP in Q3 2018, EUR

according to fresh Eurostat data. But Romania remains below these two

The growth rate recorded in 2017 is the highest since 2008 for the eastern European

countries if we compare the values in the first

country and is due mainly to government-led

nine months of this year (EUR 142.6 billion

increases in household consumption.

versus EUR 152.7 billion and EUR 149.8 billion,

During the last few years, the government

balance sheets of large multi-national enterprises in 2015. The purchasing power standard (PPS) is an artificial currency unit that eliminates price level differences between countries, accord-

has adopted a strategy of wage-led growth,

ing to Eurostat. The EU’s statistical branch ex-

stimulating household consumption and GDP

plains that one PPS buys the same volume of

ters of this year, Romania looks on course to

growth rates, but this model has generated

goods and services in all countries, allowing

larger fiscal and current account deficits. Of-

meaningful volume comparisons of economic

ing that the per capita value will break EUR

ficial data confirm Romania’s GDP was larger

indicators across countries.

respectively). Given its GDP rates in the first three quar-

www.business-review.eu Business Review | January May 20162019

HUMAN COVER RESOURCES STORY 14 21

Best paid management jobs in IT, with average salary of RON 10,500 The Romanian workforce needs not only blue- and white-collar workers, but also managers. A total of 9,000 management positions were available in 2018 on eJobs.ro, with an average salary of RON 7,662. And it was IT managers who commanded the highest pay. By Aurel Dragan

he number of management job vacancies increased in 2018 by about 10 percent over the previous year,

with companies putting more than 9,000 such jobs up for grabs. Most of these were for candidates with sales experience (2,016 jobs), logistics (1,166 posts) and banking (713 roles). The sectors with the next highest numbers of vacancies for managers in 2018 were food and HoReCa, marketing, procurement, construction, finance/accounting, engineering and IT. “Just as last year, sales dominate this ranking. The difference is that, unlike in 2017, the number of jobs for managers in sales has doubled. The number of open positions in food and HoReCa, IT and financial and accounting also increased. All the signals we’re getting from employers at the end of the year

The best paid managers remain in Bucharest and Ilfov

show that things will be just as dynamic next year and that we will probably see even more

eJobs received 3.5 million resumes

impressive growth in IT, financial and, of

close to or even equal to those in the capital,”

course, again, in sales,” says Bogdan Badea,

says Badea. Timisoara is the second city to

this year from candidates. Most of them

CEO at eJobs Romania, the largest online

try and approach with Bucharest in terms of

were from people looking for a job in sales

recruitment platform in Romania.

salary, making the west the third most attrac-

(700,000 CVs), followed by accounting

Breaking things down by geographical

tive destination for managers with an average

(400,000), and human resources (200,000),

region, the best paid managers remain in

salary of RON 5,975 per month. Next come the

according to data collected by the site. The

Bucharest and Ilfov. The average salary at this

south (Muntenia), where the average salary is

next most popular fields among candidates

professional level is RON 7,662 per month,

RON 5,866 and the center (RON 5,830).

were outsourced call-center services, back-

according to Paylab.ro, the eJobs payroll com-

Revenue decreases significantly as we

office, transport and logistics, administration

parator. The north-west is the second most at-

move towards the east of the country. Man-

and HoReCa, banking, legal and IT & software.

tractive area for managers in terms of income,

agers in the north-east command average

Other areas where companies sought many

with a net salary average of RON 6,281.

revenues of RON 5,290 per month and RON

employees this year were transportation,

5,792 in the south-east. The lowest wages are,

food and fuel, human resources, back office,

region very much because of the explosion of

however, in the Oltenia area (south-west) at

production, construction and engineering.

business in recent years and the fact that as a

RON 5,186.

“Cluj-Napoca is the city that raises this

university center it has a huge number of can-

“Overall, IT executives are the best paid,

As for the most active cities in terms of employment, the leader was Bucharest,

didates. That is an argument that has a lot of

with an average salary of RON 10,500. Next

where bosses advertised over 42,000 jobs this

weight for companies that want to open head-

come financial directors, who earn on average

year. In second place, at a significant distance,

quarters outside Bucharest. For this reason,

RON 8,900, marketing and sales directors

was Cluj-Napoca, with 8,276 ads, followed

wages have increased exponentially here in

(RON 8,800) and logistics managers (RON

by Iasi (4,662), Timşoara (4,352) and Braşov

recent years and, in many positions, are very

8,200),” adds Badea.

(3,549).

www.business-review.eu Business Review | January 2019

22 ENTREPRENEURS

Far and away: running a local business from abroad With local entrepreneurial spirit and initiatives thriving, many Romanians have chosen to move abroad and run their local businesses remotely. BR sat down with three young entrepreneurs who have taken this path and heard about the highs and lows of being split between Romania and the countries where they run their companies and live their lives. By Anda Sebesi

Mihaela Berciu, Essential for Excellence Ltd. and Spark Your Bloom Ltd

Paul Cosmovici, Cosmovici Intellectual Property

manian entrepreneurs emerged

tional way? That is the big question. Today’s

business from France. Having a strategic role

on the local market, it reshaped

technology makes running businesses

rather than an operational one and yet being

the way of doing business here. Extending

remotely much easier. “The new technologies

the sole shareholder of the company, Serban

operations abroad became a common thing –

greatly ease communication and allow you

says that it is her who thinks about the future

a natural step for a business aiming to become

to be in constant connection with your team

of her business and she organizes her work

a major player in a specific sector on the

and clients,” says Ruxandra Serban, general

accordingly.

mid-term. However, some Romanian entre-

manager of Erka, an independent omni-

preneurs had a different approach and vision

channel advertising agency. She founded

in that part of Europe is Paul Cosmovici,

and have chosen to run their businesses while

the company back in 2004, after graduating

managing partner at Cosmovici Intellectual

living abroad.

from the Louis Pasteur University in Stras-

Property (IP) law firm, an entrepreneur who

hen the new wave of young Ro-

So is this easier or harder than the conven-

bourg, and decided two years ago to run her

Another Romanian working remotely

www.business-review.eu Business Review | January May 20162019

ENTREPRENEURS COVER STORY 23 14

runs his business from Geneva. “It is difficult and not just because in my case it is about the frontier between France and Switzerland. It is very important to have a capable employee who works in your local office and who can help you to manage a team with its specific problems,” says Cosmovici. He finds the lack of human contact challenging, mainly from the psychological perspective. “People you work with sometimes need to know that you are there. Some tensions between the team members cannot be perceived via email,” he says. As for Mihaela Berciu, leadership breakthrough specialist at Essential for Excellence Ltd and founder of Spark Your Bloom Ltd, running her business from the UK suits her down to the ground. “I spend on average a week a month in Romania and the rest of the time I have regular calls with my team. Part of the team I work with is based in Italy and in the UK. I also have clients in Moscow and

Ruxandra Serban, Erka

suppliers in China and Spain. Trust is probably the key in such situations,” says Berciu.

Berciu says, having to deal with a high level of

set aside one’s physical presence and who

Essential for Excellence Ltd was established

complexity is the biggest difficulty. “It’s more

are able to understand a process that begins

in 2011 and extended its activity to Roma-

to do with having to deal with an eclectic

and ends using technology alone. Last but

nia in 2017. Its main activity is leadership

mix of issues every day and keeping on top

not least, you need autonomous employees

progress for senior executives. In Romania

of things. But when your team is motivated,

who are motivated to make some decisions,”

she also runs open seminars on leadership of

they know what they have to do and they do

outlines Cosmovici. According to him, one of

self, called Leadership Inside Out. Her second

it. Working with people from different cul-

the biggest challenges is to offer Romanian

business, Spark Your Bloom Ltd, which was

tures, time zones and various native tongues,

services to sophisticated foreign clients.

set up in the UK in 2016, is an online mindful-

definitely makes it interesting and complex,

ness platform that brings together a subscrip-

but fun and exciting,” she says.

tion-based magazine and an affiliate shop. It

As for Cosmovici, he says that you need

… AND THE ADVANTAGES But those running their local businesses from

also makes its own products, most of which

an informatics system through which every

abroad say there are also upsides – otherwise,

are manufactured in Romania.

member of the team knows what they have to

they wouldn’t do it. “There are logistical,

do. “You need to avoid direct conversations

financial and cultural advantages. You can

THE CHALLENGES…

or phone calls or an endless series of emails.

manage some things much more easily. A

All businesses have challenges, regardless of

More importantly, you need people who can

team located in Bucharest will generate lower

whether they are international or local. As

How France supports entrepreneurship • • • • • • • • •

Many organizations and associations facilitate networking for entrepreneurs; People are more dynamic, compelling and demanding; Higher effectiveness; The “playground” is larger for a business; A diversity of human resources: You can meet people from all over the globe who studied at the most prestigious universities in the world (Harvard, Sorbonne, MIT, Ecole Polytechnique); Cultural differences and diversity are a huge advantage; The legal framework is very precise; A high level of innovation and technology Source: Ruxandra Serban

www.business-review.eu Business Review | January 2019

24 ENTREPRENEURS

How UK supports entrepreneurship • • •

•

The UK is known as the most supportive country of entrepreneurship in Europe; You can register a company in less than an hour, open a bank account, and file accounts all online, fast and simply; VAT returns are filled online every three months and if you are owed money, you’re paid within three days of filling. You also have to pay ASAP if you owe money, but the authorities are business friendly and focused on helping you if you have difficulties paying; The wellbeing of the entrepreneur takes precedence over a payment, as the system focuses on long-term revenue, rather than short-term; Helping an entrepreneur recover from a bad financial situation means the authorities will receive more money in the long run, not only in the form of VAT, but also corporate tax, dividend payments, etc; The system is based on trust and designed to help people succeed. But if you take advantage of it maliciously, the penalty is severe and can include prison, on top of having to return the money. Source: Mihaela Berciu

final costs than one in Munich or Paris, for ex-

the regions that are relevant for trademarks

exposed to give her a different perspective,

ample,” says Cosmovici. In addition, he says

worldwide,” he says.

which is reflected in her offering. “My ap-

that in such a context, the customers come

proach is also different due to the maturity of

Berciu shares his assessment, noting that

mainly from abroad. “The fact that you live

there are many benefits to running your busi-

the market I studied and work in, positioning

next to them or a one-hour flight from their

ness remotely. “If I were to name the ones

me distinctively on the Romanian market. I’m

head offices, in their cultural environment,

that I find make the most difference, it would

not saying my offering is better, I’m saying it

gives higher confidence. However, these cus-

be staying objective, since we are not all in

is different,” adds Berciu.

tomers generate confidence in Romania too.

one office every day, so we are not engrossed

Back on the continent, Serban of Erka

You are more credible even though you don’t

in mundane issues; keeping communication

says that the French market is much larger

live in their city or country,” adds Cosmovici.

short and focused and staying updated on the

and there are plenty of opportunities there.

His company works for companies in sectors

latest trends.” The UK market is much more

“Paris is tireless when it comes to inspiration,

such as food, software, construction, bank-

mature than the Romanian one, and keeping

both professionally and personally. Entrepre-

ing, luxury, and pharmaceuticals, based in

up with trends is mandatory for the success

neurship is an ongoing learning process and

countries such as Switzerland, the US, France,

of a business. She adds that the fact she lives

the expectations are high in France. If you

Germany and the UK. “Considering the

and works in the UK is a competitive advan-

go wrong once, you are not allowed to do it

specifics of the IP industry, we represent cus-

tage as the information she delivers, the tech-

again. You had better start doing something

tomers from about 70 countries. We cover all

niques that she uses and the news that she is

else,” says the Erka head.

How Switzerland supports entrepreneurship • • • • •

A completely different social and cultural environment; A different approach when it comes to difficulties, financial, cultural and administrative levers; Higher confidence in young innovative individuals; Easier access to financing sources; A tradition of family businesses. Source: Paul Cosmovici, Business Review

www.business-review.eu Business Review | January 2019

PARTNER CONTENT 25

New major recognition for PPD Romania since 2007, and part of Photos Photiades Distributors Group, is the leading distributor of premium spirits and long-term partner of the famous spirits producer, Diageo, the world’s largest premium spirits producer. Together with Diageo, Gruppo Campari, Jose Cuervo, San Pellegrino, and other local strategic partners, PPD Romania boasts the broadest portfolio of premium and super-premium spirits and beverages. These include global giants such as Johnnie Walker, J&B, Smirnoff, Captain Morgan, Sheridan’s, Baileys, Jose Cuervo, Campari, Aperol, Acqua Panna, San Pellegrino, and its own label product, Tazovsky Vodka, amongst others. PPD Romania, the leading distributor of

impressive increase in 2018, winning a significant

PPD Romania distributes its drinks portfolio

premium spirits on the local market, won the

market shares for Johnnie Walker, J&B, Captain

in all major international retail chains (IKA)

most notable Diageo Europe Partner Markets

Morgan and Baileys”. Renato Juric referred also

present in Romania and in more than 15,000

- Partner of the Year award, as well as the

to PPD’s significant investments in building the

HORECA locations nationally.

Best Performance in Premium Core award for

efficient organizational structure, capability and

the well-known brand J&B.

processes, as well as PPD’s remarkable passion

des Group (PPG), an international company

PPD Romania is part of Photos Photia-

to drive growth agenda and high-performance

founded over 70 years ago with an impres-

32 European markets where Diageo is

culture based on strong measurement and evalu-

sive experience in the sales, marketing and

partnering with Distributors to build highly

ation system.

distribution, of renowned international

PPD Romania was distinguished among

successful businesses. It is the second time

Receiving the prize, Alexis Photiades, Manag-

alcohol and non-alcoholic brands. PPG is

in three years when PPD’s performance

ing Director of Photos Photiades Group and PPD

present in Romania, Greece, Croatia, Cyprus

with J&B has been awarded and the third

said: “In almost twenty years of our collaboration

and Slovenia.

time when receives Diageo Europe Partner

with Diageo, we have been honored with this

Markets - Partner of the Year.

outstanding prize in Cyprus, Croatia and now in

alcohol with an outstanding collection of

Diageo is a global leader in beverage

Romania. This honor leads us to set the target

brands across spirits, beer and wine catego-

of the Year award is recognizing best out of

even higher, always based on the principles and

ries. These brands include: Johnnie Walker,

the best – Diageo Partners in Europe Partner

values in which this Group has been built and

J&B, Dimple, Black & White, White Horse,

Markets, who mastered in the respective cat-

grown. Congratulations to the PPD Romania

Smirnoff, Tanqueray, Baileys, and Captain

egories and who demonstrated the greatest

team, as once again, made us very proud all of us

Morgan, Pampero, Zacapa. Diageo is a global

organizational and business development

at Photos Photiades Group “.

company, and its products are sold in more

Diageo Europe Partner Markets Partner

within the last 12 months. During a spectacular ceremony hosted in Kyiv, Renato Juric, Diageo General Manager Europe Partner Markets and Middle East & North Africa congratulated the Group and PPD Romania for the great achievement and highlighted: “PPD Romania not only delivered exceptional performance but made bold investment in growing people faster than our business. This recognition is also a result of PPD Romania impressive, consistent growth, which has crowned the company the undisputable leader in the market. An outstanding performance, achieving an

PPD Romania, present on the local market

than 180 countries around the world.

www.business-review.eu Business Review | January 2019

26 INTERVIEW

CEC mate: Ghetea hails patriotism of local entrepreneurs Caught in a fierce battle with the local subsidiaries of foreign groups, CEC Bank, the only leading state-owned bank in Romania, is taking advantage of an unexpected wave of patriotism in domestic business: local entrepreneurs prefer it because loan decisions are made in Bucharest, on documents written in Romanian, CEC Bank president Radu Ghetea revealed in an interview with Business Review. By Sorin Melenciuc

ABOUT Radu Ghetea, President of CEC Bank He has been the president of CEC Bank since 2007. Between 1991 and 1994 he was member of the board of directors of Anglo-Romanian Bank Ltd London. In 1994 he joined the team of Alpha Bank Greece with the aim of founding its local subsidiary as prime vice president and member of the board of directors.

of businesses and of fixed assets like land or buildings used to secure loans, which depreciated during the crisis. We now have a real market for these businesses and assets. A few years ago, the assets that secured NPLs were difficult to sell as borrowers became insolvent or even bankrupt and the banks were forced to provision these NPLs. But since last year the market has recovered and we began to sell some of these businesses, which seemed dead at one point, and some of the guarantees for loans at much better prices than those paid just a few years ago – when you got back as little as 2 percent of the NPL. At this moment, we can sell these assets in the double-digit area, for between 20 and 30 percent, and this is a good situation for local banks because we can reduce provisions and increase income. This is one of the sources of the good profits in the banking sector in 2018. Another cause is the rise in interest rates, mainly ROBOR. There is no secret here; banks are not rushing to increase interest rates on savings so the cost of money deposited by clients has declined compared to the cost of money you lend to customers. But this is only a temporary situation; it’s always the case,

Many banks in Romania have already announced increasing profits this year. What is CEC Bank’s situation from this point of view?

posting good profits. The question is why the

but this year the rise in interest rates was

results have been lower than this year until

higher on the loans’ side than on the sav-

now. I don’t think we currently have banks

ings’ side. Now, this is no longer a source of

posting losses. It is clear that we are coming

revenue as banks have already significantly

We are approaching the end of the year and I

back after a period of crisis, after a period

increased interest rates on savings.

do not think many things can happen to influ-

when all banks were forced to make provi-

ence the results. In 2018, CEC Bank will have

sions for non-performing loans (NPL) and this

year is the economic growth. A lot of Roma-

gross profit of around EUR 100 million, which

situation has affected profits in recent years.

nian entrepreneurs have taken matters into

is an all-time record for our bank, and this is

But now the crisis has gone, its effects are

The third source of profits for banks this

their own hands and are now operating busi-

in line with what is happening in the Roma-

no longer visible and economic growth is a re-

nesses at a much higher scale. Agriculture has

nian banking sector where most lenders are

ality. We are now seeing a much higher value

always been carried out in Romania but the

www.business-review.eu Business Review | January May 20162019

COVER INTERVIEW STORY 27 14

level of industrialization in this sector, from

appetite for business in many young Roma-

the bank would have been left without a fu-

maize crops to sausages on the table, has

nians. Of course, IT remains a leading sector

ture. But at that very moment, we decided to

never been so high and these longer indus-

in Romania, and we can be proud of it, but a

enter the agricultural loans market as farmers

trial chains have begun to produce results,

sector like agriculture is now very attractive

began to receive EU funds. We granted loans

especially as they are in the hands of people

and this is also valid for young people.

for almost everything in agriculture as long as

with a lot of initiative and energy.

But there are also very large holdings in agriculture which have much lower costs per

there were EU subsidies. We granted 145,000 loans to farmers in

You spoke about the lower provisions on NPLs. Have Romanian banks offloaded their NPL burden?

unit of production and are less dependent

that period. If we had been a niche bank, we

on weather. We also hope that we’ll soon see

couldn’t have done it. When the agricultural

achievements in terms of infrastructure with

loans market began to fade, we entered the

Some banks got rid earlier, others later. But

horizontal effects.

SME loans market. But SMEs were also hit

the lenders that did so earlier accepted 2

In terms of employment, we have a big

by the crisis and many went insolvent or

percent of the loan value, while those that

problem. It is clear that huge efforts are being

bankrupt. Then, we entered the local authori-

waited longer are now being paid 30 or even

made by the government but many other

ties’ loans market, which is a totally different

40 percent. In some cases, banks are now

steps are necessary.

business. I expect economic growth will con-

finding buyers for an entire business and sell-

A few days ago I was speaking to a client

tinue for a period and that we will have good

ing it at 100 percent. We can reveal one such

who said that he had 1,400 employees, and a

business for some time but, at some point, a

case because it is now public: together with

vocational school to train his workers. Unfor-

recession or a crisis will hit, given the global

Transilvania Insolvency House, we managed to save the Romanian brand Galli Gallo, a turkey

tunately, after 12 or 18 months

economic cycles.

they prefer to leave for Germany

meat producer in Brasov.

or another

A local investor took over

country,

the entire business at 100

even

percent of our provision

if they

made during the crisis.

have to pay for their training.

You are competing with the local subsidiaries of large foreign financial groups. What are your main advantages and disadvantages in this competition? The main disadvantage is

In which segment of the market – corporate, SMEs, households – do you see the most credit demand?

but it would be normal if we were talking

group and is not forced to learn everything

Households have always wanted to take out

about fair competition.

from scratch – for example, regarding new

It is hard to cope with this kind of competition

foreign shareholders is part of a

banking regulations like IFRS or new payment

loans, but wanting does not always mean it is possible. But speaking about businesses,

that a Romanian bank with

systems. We have to learn everything by

have belonged to the local subsidiaries of

CEC Bank is an exception among the big banks in Romania: it is state-owned. Do you think the bank should remain a universal lender or would it be wiser to move towards a niche bank model?

foreign companies and many local entre-

For the last 15 years I have been telling

preneurs thought that this kind of business

everyone that niche banks have no future. I

least during the last few years, there has been

needed huge investment from abroad and

think niche banks are no longer viable in any

a wave of patriotism in our business environ-

foreign experts involved in it. To give you an

country. Niche banks are good when things

ment. A growing number of local entrepre-

example, the real estate market in Romania

are settled on the long term in terms of the

neurs prefer to work with us because in our

was controlled by foreign investors, espe-

economy, politics or social conditions. But, at

bank the decisions are made in Bucharest, on

cially on the office development segment.

the moment, we – and not only Romania but

documents written in Romanian. This model

Look at those investing now in real estate

the whole world – are living in a very volatile

eases communication with our clients and

and you’ll see many Romanian entrepreneurs

environment in all aspects.

the mutual trust between each other – bank

we can now see a more active approach from Romanian entrepreneurs. For years, major businesses in Romania

involved in major developments, and I think this is a very good thing.

CEC Bank was a niche bank for 145 years; it

ourselves, whereas a large banking group can afford to test a model in Croatia or Athens or Vienna, and extend it in all its subsidiaries. This is a major disadvantage for us. But we also have some advantages. At

and client. Another advantage is that our

was a savings bank. Imagine if we had been a

network exceeds 1,000 branches – we are by

savings bank when the crisis began, in 2008-

far the largest bank in Romania in terms of

tiative, and this is only one example among

2009. At that moment, the retail loan market

number of branches. Our clients have already

many. On the SMEs segment, we see many

collapsed, in 2010 public sector wages were

understood that we can offer them all the

government-led initiatives like Start-Up Na-

cut by 25 percent, and wages in the private

products and services that could be offered

tion, and this program has clearly awoken the

sector were hit even harder. In a niche model,

by the local subsidiary of a foreign group.

We can see a shift from foreign to local ini-

www.business-review.eu Business Review | January 2019

28 TOP 100 ENTREPRENEURS

Romania’s top 100 entrepreneurs Business Review magazine and banii.net launched on December 13 at Bucharest’s CEC Palace the first bilingual print supplement released by a press institution in Romania – Top 100 Entrepreneurs.

Photo: Mihai Constantineanu

By BR Team

The closing moment of the Top 100 Entrepreneurs Awards Gala

MAG CEO Iulian Stanciu, Mobexpert

exclusive stories about renowned entrepre-

the fourth largest DIY player in Central and

CEO Dan Sucu, Fan Courier co-founder

neurs who are market leaders, as well as

Eastern Europe. The two brothers’ business

Felix Patrascanu, and Bilka CEO Horatiu

those whose young businesses immediately

reached EUR 1.38 billion in 2017. And things

conquered international markets.

don’t stop here as Dragos and Adrian Paval

Tepes are among the entrepreneurs who at-

tended the event and received awards.

In addition, as part of the project, journal-

aim to reach 55 stores at national level and

ists at Business Review and banii.net devel-

make new investments to upgrade their busi-

officials such as Radu Ghetea, president of the

oped a league table of the most promising

ness.

CEC Bank administration council, business

startups that could revolutionize the markets

environment minister Radu Oprea, commu-

in which they operate.

Those who handed out the prizes included

nications minister Alexandru Petrescu and

The largest company with 100 percent

The second place in the ranking is held by Iulian Stanciu, who dropped out of school to open his own business. He is one of the most

Romanian capital is Dedeman, founded by

popular entrepreneurs in Romania and con-

Dragos and Adrian Paval. Dedeman’s quick

trols several major retail and delivery compa-

system based on five criteria: profile, business

growth has led to the creation of a true em-

nies, such as eMAG, Flanco, FashionDays and

value, business development, number of

pire in the 25 years since the brand’s debut.

Sameday Distribution. He had earned his first

employees and social involvement. It features

At the beginning of 2016, the firm became

million euros by the age of 28, selling comput-

agriculture minister Petre Daea. The ranking was compiled using a scoring

www.business-review.eu Business Review | January 2019

TOP 100 ENTREPRENEURS 29

Bank), Allianz-Tiriac Insurance and Metro

ers through Asesoft Distribution, his first

who, besides being a founding member is also

company. “In all these years I’ve learned that

its president. The Cluj-born banker believes

Group. Tiriac has also made major invest-

the most important thing in every relation-

that BT’s success is the result of its strategic

ments in the real estate sector, with Stejarii

ship, including the one you have with your

approach and the fact that it follows the rules

being one of his best-known projects. Last

customers, is to keep all the promises you

of ethical business.

year, he announced that he was planning to

have made,” Stanciu told Business Review.

In fourth spot is Ion Tiriac, who developed

increase his investments in the former Metro

a real business empire after 1990. Everything

Otopeni area, the site of his vintage car collec-

the banker who turned Banca Transilvania

started with Autorom, the first importer of

tion and the Telekom Arena ice skating rink.

into the number one financial institution in

Mercedes-Benz cars to Romania. The former

The businessman’s empire also includes com-

Romania. The lender is the largest business

tennis star’s name is also linked to other well-

panies like Tiriac Air, specialized in luxury air

with which Ciorcila’s name is linked, and it

known businesses like Ion Tiriac Commercial

transport, and Tiriac Energy, which manages

owes its performance to the entrepreneur,

Bank (which later became UniCredit Tiriac

solar parks and trades oil products.

Completing the top three is Horia Ciorcila,

www.business-review.eu Business Review | January 2019

30 MONEY

Corporate venture capital starting to gain ground on local startup scene Corporations have developed fully fledged venture capital arms that are actively looking for startups with the potential to become unicorns with global clout, putting up USD 14 billion in funding in the second quarter of 2018 alone. Although the local market for corporate venture capital (CVC) is still in its nascent stage, players say that the startup ecosystem is beginning to become more interesting to such complex investors. By Ovidiu Posirca

The number of deals involving CVCs has grown constantly in the past 3 years

he concept of CVC has been present

ing, a CVC investment should help a startup

for a long time in mature markets

get access to the resources of the investing

remunerated differently from traditional

such as the US, and in recent years

company, which is very well-positioned in

VC investors. Their pay includes a variety

multinationals have also started to get more

the industry. Meanwhile, large corporates can

of cash, carried interest and corporate stock

involved in the Romanian startup ecosystem.

invest in startups to meet their own goals,

from their parent company, according to a

Large companies are either buying stakes in

by getting faster access to innovation and

report published by Pitchbook.

promising local startups or backing accelera-

technology.

tor programs in which dozens of entrepre-

â&#x20AC;&#x153;It will continue to grow. The evolution

Corporate venture capitalists are also

â&#x20AC;&#x153;Usually, corporate venture funds are structured by large corporations as global

neurs are working to secure critical funding

has been felt strongly in the past two years

initiatives, rather than local ones. This is why

rounds, while also learning the ropes of run-

and we forecast that 2019 will remain in

we do not expect to see a lot of CVC activity in

ning a business.

acceleration mode,â&#x20AC;? Mircea Vadan, coordina-

Romania. In many cases such initiatives reach

tor of Grow Pad, the corporate acceleration

Romania only as an offshoot of international

ROOM TO GROW

program of Spherik Acclerator, told BR, of the

activities of such corporate ventures being

Compared to regular venture capital fund-

development of the Romanian CVC market.

set up at the headquarters by multinational

www.business-review.eu Business Review | January 2019

MONEY 31

corporations with branch offices in Romania,

CVC SET TO CHANGE GEAR IN ROMANIA

CVC participation was involved in 30 percent

but they are not focused on Romania,” Marius

But in the past two to three years there has

of deals that totaled USD 35.9 billion. Some

Ghenea, partner at 3TS Capital, the private

been a shift towards traditional CVC activity,

of the hottest industries for investors were

equity and venture capital firm, told BR.

especially in the banking and telecom fields.

artificial intelligence, e-commerce, autotech,

active investors were the VC arms of US

More visible activities are seen around ac-

cybersecurity and biotech. China-based deals

search giant Google and chip makers Intel

celeration and partnership programs, which

dominated global investment in the second

and Qualcomm. Among the top 20 CVCs are

translate into investments of up to EUR

quarter of the year.

Asia-based investors Samsung Ventures,

100,000 for startups, says the partner.

Ghenea says that we might see more CVC activity coming from large Romanian companies or corporations. He mentioned Banca Transilvania, which has already started to investment in fintechs, and e-commerce giant eMAG, which is looking at promising companies from its sector. “However, the universe is relatively limited in Romania, from this perspective.” Globally, CVC investment activity rose by 18 percent in 2017 year-on-year, in terms of capital invested, to USD 31.2 billion, according to CB Insights. The number of deals was up 19 percent to 1,791. Some of the most

KPMG experts point out that the overall

“Although this is very beneficial for the startup ecosystem, as such firms can benefit from the expertise of a bank (for example) when building a fintech product, I would like to see traditional CVC activities, which means investments in later stages, supporting the growth stage, where also the knowledge and network of an enterprise can bring more value onto the table,” added Ochisor. He suggested that, going forward, multinational firms could bring their own VC arms onto the Romanian market and invest in startups that initially get funded by typical VC players. Bertelsmann Asia Investments, and Mitsui

VC investment activity topped USD 70

European venture capital environment is still characterized by late-stage-focused funds,

& Co. Global Investment. They are joined by

billion across 3,108 deals in the second

healthcare investors Novartis Venture Fund,

quarter, which

as various chal-

Johnson & Johnson Innovation, SR One, Alex-

represented

lenges remain in

andria Venture Investments, Roche Venture

a new record,

the early stages.

Fund, Pfizer Venture Investments, and Novo

according to a

Ventures.

report by KPMG,

early-stage fun-

the profes-

draising will ex-

ecosystem, as they can provide not only

sional services

perience bouts

money to a startup, but also generate busi-

firm. The CVC

of bullishness,

ness via multiple ways: their own customer

participation

that market

base, credibility and knowledge, especially

surpassed 20

within Europe

when it comes to scaling,” Cosmin Ochisor,

percent of the

continues to

partner at GapMinder Venture Partners, told

total figure. In

face systemic

BR.

Europe, investment activity amounted to

hurdles more owing to the very nature of

USD 5.6 billion in 631 deals, while the CVC

early-stage VC than anything else, as well as

of activity coming from the corporate side is

participation got close to 25 percent. Moving

interplay between EU agencies or national

at the border between “public image focused

to the US, CVC investment activity exceeded

governments as to specific roles,” said KPMG

and educational programs”.

USD 14 billion in the second quarter. In Asia,

experts.

“CVCs are very important for the startup

Turning to Romania, he says that the bulk

“Although

www.business-review.eu Business Review | January 2019

32 TAX

Taxing times: Romania’s fiscal regime, a mixed bag for entrepreneurs Business owners spent 163 hours paying their taxes this year, while creating a new company took 12 days, according to international financial institutions’ reports on Romania. For entrepreneurs, the local taxation regime is a mixed bag, as frequent legislative changes dent the country’s corporate fiscal attractiveness. By Ovidiu Posirca friendly fiscal jurisdiction. Moreover, while up to now the shareholders had a cash-flow issue because they had to wait until the end of the year to distribute dividends, 2018 brought the long awaited change, namely granting the option to distribute them quarterly,” Gabriel Sincu, associate partner tax services at EY Romania, the professional services firm, told BR. Another big change for companies relates to the deductibility of expenses for borrowed capital. Taxpayers will be able to deduct from the computation of profit tax costs associated with exceeding debt levels (the gap between interest expenditure and revenue) up to EUR 200,000 and 10 percent of EBITDA, adjusted according to fiscal rules, says Sincu. “This change could be an advantage for businesses that are just getting started, given the relatively high deductibility limits for them,” added the EY Romania partner. Romania is ranked ninth out of 140 countries for the cost of starting a business

For sole traders, pension (CAS) and healthcare insurance (CASS) contributions were hiked to 25 percent and 10 percent respec-

he profit tax of just 1 percent for com-

same time there are very high taxes on labor

tively. Their computation base is the yearly

panies with a turnover under EUR 1

– and in the tech sector you need to be really

minimum wage value (RON 22,800), although

million, the 5 percent tax rate for divi-

competitive in order to have access to the

the income of an individual carrying out inde-

dends, the 10 percent income tax applicable

best talents, especially for IT engineers where

pendent activities can exceed this threshold.

on capital gains on exit and the special tax

salaries are close to European level,” Cosmin

Another fiscal change that was relevant for

provisions for holding firms make Romania

Ochisor, partner at GapMinder Venture Part-

entrepreneurs was the increase of the VAT

an attractive market for startups at regional

ners, told BR.

exemption threshold to RON 300,000.

and European level, says Marius Ionescu, tax

Companies that are in the red or have a

This year, the total tax and contribution

partner and one of the coordinators of NNDKP

profitability rate under 6 percent, situations

rate in Romania stood at 38.4 percent, below

Tax Advisory Services.

that occur commonly in the investment stage,

the regional average of 39.6 percent, accord-

can pay the 1 percent profit tax if their annual

ing to the Paying Taxes 2018 report published

FRIENDLIER MEASURES FOR BUSINESSES

turnover doesn’t exceed EUR 1 million. To be

by PwC and the World Bank Group. By com-

The state has also updated the dividends

eligible, firms need to have minimum share

parison, the figure stands at 62.2 percent in

distribution mechanism and eased the tax

capital of RON 45,000 (roughly EUR 10,000)

France. Luxembourg has the lowest tax take

burden for individuals reporting income from

and at least two employees.

in the region, at just 20.5 percent.

independent activities. “This is a mixed bundle, as we do have a very favorable tax regime for SMEs, but at the

“Also, considering the 5 percent tax on dividends, we can say that entrepreneurs already

TACKLING TAX CHALLENGES

benefit from a treatment fit for a more than

Although some local tax provisions have been

www.business-review.eu Business Review | January 2019

TAX 33

- ADVERTORIAL -

Recent VAT news for 2019

he Romanian Parlia-

of the Court of Justice of

ment is discussing

the European Union which

two new changes

generally has retroactive

to the VAT legislation with

effect, it should apply to

effect from 2019. They

pending bankruptcies as

were approved by the

well and not only to those

Finance Committee of the

decided by the court after

Chamber of Deputies and

the entry into force of this

will be subject to vote.

change (2019).

First, the VAT bad debt

Second, the conditions

relief will be allowed ear-

for purchasing houses/

lier, at the beginning and

apartments with 5% VAT

not at the end of the bank-

will be simplified. Until

ruptcy. This means that

now, the 5% VAT reduced

taxpayers that did not

rate was applicable

receive the VAT invoiced

provided (i) the price was

from their customers will

up to RON 450,000, (ii)

be entitled to claim it back from the state

customer). One open question is what will hap-

the surface of max 120 sqm, (iii) the related

when the court decides the entry into bank-

pen with pending bankruptcy processes. Would

land’s surface of max. 250 sqm, and it was a

ruptcy of the defaulting customer. Currently,

they be eligible for the new rule? Our practical

(iv) once in a lifetime benefit. The new rules

the VAT claim is allowed only when the

expectation is that they will not be eligible; the

remove the last 2 conditions and this change

bankruptcy ends. This new rule is welcome

tax authority will take the view that the law

is aimed to facilitate sales of real estate.

since it will reduce, even by years, the pre-

does not apply retroactively so as to cover past

However, the review of the other conditions

financing of VAT by taxpayers (VAT paid to

decisions on entry into bankruptcy. In our view,

would also help, in particular an update of

the state without being received from the

since this change of law is generated by case-law

the value limit.

improved in a bid to ease the burden for com-

there are still some problems with the

lenges for any business owner.

panies, other historical issues related to the

norms), and taxation levels for dividends and

public management of taxes in Romania have

capital gains,” Ghenea told BR.

remained unchanged. It’s still unclear if the

Romania is ranked ninth out of 140 coun-

“This lack of stability harms the business environment as a whole, and especially businesses that are just being started, which can’t

country will be able to move all interactions

tries for the cost of starting a business, ac-

afford consultants due to limited resources.

with taxpayers online or boost the assistance

cording to this year’s Global Competitiveness

In addition, the red tape and rudimentary and

services for individuals and companies that

Report, at 0.4 percent of the Gross National

nontransparent fiscal administration system

want to pay their taxes faster.

Income per capita. Entrepreneurs dealing

further hamper entrepreneurs,” says Sincu.

At present it’s neither especially simple

with fiscal matters tend to seek the help of

For Paul Harfas, founder of Octavic PTS, a

nor complicated to open a startup in Roma-

financial and legal specialists only when the

startup providing visual management in fac-

nia, suggested Marius Ghenea, partner at 3TS

first issues emerge, says Mircea Vadan, coor-

tories, the big issue is labor taxation, which

Capital, the private equity and venture capital

dinator of Grow Pad, the corporate accelera-

he describes as “pretty aggressive.” Harfas

firm.

tion program of Spherik Accelerator.

says that Romanian employees are used to

“A major role in fiscal education should be

negotiating solely their net wage and many

see significant challenges when starting a

undertaken by accounting firms, which focus

of them don’t know the real costs behind it.

business in Romania. From the bureaucratic

pretty much only on the accounting process,

“And for small companies, from my experi-

and regulatory perspective, although there

without really aiming to understand the

ence, it’s pretty difficult from a bureaucratic

are other EU countries where incorporating

business and coming up with advice outside

perspective to access the tax deductions

a business is quicker and easier, Romania

the basic taxation and financial management

available for the IT sector. I think a lot can

also has its advantages, e.g. the special rules

matters,” Vadan told BR.

be done in the area of labor taxation in order

“Also, from the fiscal perspective, we don’t

and lower costs for young entrepreneurs, business-angel legislation available (although

And then there is the unpredictable fiscal framework, which creates additional chal-

to make the ecosystem attractive for new entrepreneurs.”

www.business-review.eu Business Review | January 2019

34 COMMUNICATION

Communicating the Centenary – companies play it safe Only a few brands stood out in the way they communicated the most important event Romania has celebrated in recent years – its Centenary. Although many brands did activations or associated their name in one way or another with the milestone event, experts say the creativity fell short of what one would have expected from a country with Romania’s reputation. By Romanita Oprea tool is the name of a product and because, in Ardealul’s case, it was directly connected to the Centenary celebration.

SPECIAL BOTTLES Another international name, and one of the most iconic and biggest “Lovemarks” in the world, Coca-Cola, also decided to launch a special, limited edition of bottles, designed by young people. The theme for the contest, launched last summer, was the creation of a design inspired by one of the three values associated with Romania’s flag. The Original Taste bottle bore diverse symbols associated with Romania, while Zero Sugar had traditional motifs and Lime illustrated “romanii/ societatea secolului următor” (Romanians/ the society of the next century). “As a brand that has won the hearts of millions of Romanians, we wanted to take part in the celebration in the best way CocaMiruna Smeureanu, Coca-Cola Romania

Cola could. Our campaigns are targeted at teenagers and young adults – those who lay

eist Industries created and devel-

100 of which were exhibited in the Tricolor

the foundation for the years to come. This is

oped the non-ATL experiential and

Museum and three were reinterpreted artisti-

why we thought that the best way we could

PR campaign for the brand ROM

cally.

celebrate Romania was to offer young people

Autentic, during #doartricolor, a campaign

Also dropping its usual packaging was

a way of expressing their creativity. And we

built around the Centenary. Starting from

Ardealul, a pate brand that decided to change

did it the Coca-Cola way – we transformed

the campaign’s ATL concept, Heist Industries

its name to Romania, as a gesture of honor.

the package of their favorite beverage into

took the idea further in real life and created

For Razvan Matasel, partner & strategy direc-

their drawing board. In the first phase of the

The Tricolor Museum, in which stories about

tor at Arsenoaiei & Matasel, 2018 was a year

campaign, we asked young Romanians from

the tricolor flag, gathered on the platform

full of briefs for the association of different

all over the country to enter a competition in

doar-tricolor.ro, received an emotional artistic

brands with the Centenary. Some of them, the

which they could imagine the design of a lim-

interpretation. The campaign started with a

strategist notes, did not even have anything

ited edition, Centenary-inspired Coca-Cola

symbolic gesture in which ROM dropped the

“Romanian” in their DNA. But a brief from

bottle. And from the thousands of proposals

usual branding on its packaging, therefore

the brand Ardealul, asking for the building of

received, three designs were selected as win-

becoming the bar that wears #doartricolor

this type of association and in an “ownable”

ners,” explained Miruna Smeureanu, market-

(#justtricolor). Moreover, the agency chal-

manner, was truly an appropriate and “chal-

ing director at Coca-Cola Romania.

lenged Romanians to share their stories about

lenging” brief. And that because, accordingly

the tricolor on the website doar-tricolor.ro,

to Matasel, the most important positioning

A few months later, once the limited edition bottles were out on the market, the

www.business-review.eu Business Review | January 2019

COMMUNICATION 35

Alina Damaschin, Rogalski Damaschin Public Relation

Razvan Matasel, Arsenoaiei & Matasel

company took the campaign further by chal-

of a Country formed by people, and which

created benchmarks to be measured against

lenging teens to create a common story about

featured the number 100 and the colors of the

in the future; others followed their authen-

how they envision the next 100 years. They

Romanian flag.

tic voices and just tactically adapted them

submitted their “chapters” on the campaign’s

But probably the most surprising and

to the Centenary; still others intervened in

website and offline – at collection points in

popular reaction was the real-time marketing

the conversation a bit abruptly, trying more

Bucharest, Cluj-Napoca and Constanta.

campaigns by KFC and McDonald’s, the big-

to take advantage of the moment than to

gest fast food rivals in Romania, which took a

give something real in return,” commented

A PEEK INTO THE FUTURE AND REAL TIME REACTIONS

funny, smart and good-humored approach to

Alina Damaschin, creative leader & head of

suggest how they could combine Romanians’

consumer PR at Rogalski Damaschin Public

Another special project was launched by Lidl

favorite products of theirs. Their social media

Relations. “Some brand initiatives were just

and The Embassy of Sustainability in Roma-

response came in the meeting of the PressOne

visible, but without ‘bringing a present’,

nia –“100 Romanians”, a radiography-project

campaign #TraiascaCapraVecinului.

anything new; others had more substance and were less visible. In general, brands took

of Romanian society. Wanting to answer questions such as “If Romania were a community

EXPERT VIEW

of 100 people, who would they be?”, “How

But how

educated or how poor?”, “What would their

was this

lives look like?”, “What is good and what is

communi-

bad in Romania at 100 years old?”, the project

cation seen

is supported by the Romanian government’s

by experts?

Department for Durable Development and

Did the

contains a collection of 100 infographics,

companies

with static data connected with the United

start to

Nations’ (UN) durable development objec-

commu-

tives and divided into relevant categories for

nicate at

Romanian society.

the right

the centenary year seriously and tried to

Other brands decided to focus on the

time? Should they have done more? “Brands’

remain relevant, while adapting to the social

future and how Romania could and should

actions were mostly concentrated in the last

‘temperature’. There are brands that are

look. For instance, Kaufland developed a

few months. At the beginning of the year,

almost the same age as Romania. Others are

campaign under the tagline “Cunoscând

companies were in the process of under-

even ‘older’. I still hope these wise ones will

trecutul, scriem urmatorii 100 de ani” (Know-

standing if and how much to link their plans

not only mark the moment, but also create

ing the past, we write the next 100 years),

to the moment and many initiatives were

something new, a product, a service, a new

recalling important figures from Romania’s

expected. In reality, they decided to adopt a

connection with the people, for the next 100

history, such as Iuliu Maniu, Alexandru

balanced approach and, in general, I would

years,” added Damaschin. In other words,

Vaida-Voievod, Ecaterina Teodoroiu, King

say, we had no big surprises: some brands

the communication was sporadic and did not

Ferdinand I, and Ion IC Bratianu. Moreover,

invested in the moment and created new

seem to be part of a bigger, more cohesive

the brand had an activation which claimed a

means to understand what people really feel,

plan, mostly because there were no big public

Guinness World Record for the Biggest Map

expect or desire for the next century and even

interest projects to communicate for.

www.business-review.eu Business Review | January 2019

36 DIGITAL MARKETING

Perfectly content: digital looks to talent and stories for winning formula From advertising contests to journalistic pieces, from companies to agencies, everyone is emphasizing the importance of content done right. Both “sides” of the communication world (companies and agencies) are hiring or contracting talented project-based content creators who can speak their target’s language and feel and understand them better than anyone. By Romanita Oprea

ver the last two-three years, marketers and advertisers have repeatedly stressed the “content is the king”

message, saying that content marketing is what fuels companies and bring them to their target’s attention in a very close and personal manner. The content is adjusted to the needs and wishes of the public, which dictates the way brands should behave and interact these days. How much has the importance of digital content grown in the last few years? According to Ion Cojocaru, content director at MRM//McCann, branded content resonates extremely well with consumers, achieving higher brand recall than traditional advertising. Viewers are already accustomed to blocking out the disruptive promotional videos that play before their selected content. “Branded content, on the other hand, is something that consumers intentionally seek out. Accordingly, branded content outperforms traditional advertising. Adina Ionescu, Groupe Renault

Hence brands have begun to take note of the incredible power of branded content and their marketing budgets reflect that change. It is no

to offer dialogue on demand, no matter the

paign, but whose talent is impressive and also

secret that globally brands are spending more

topic. “In terms of corporate content, stake-

creates value for the brand. Because if the

on branded content production rather than

holders ask for meaningful stories, compelling

content is relevant, powerful and enjoyable, it

TVCs for example,” said Cojocaru.

arguments, easily understandable visuals and

will stick and be remembered.

According to Sebastian Lüba, head of social media at Kubis Interactive, the simple

videos,” commented Adina Ionescu, communication manager at Groupe Renault.

existence of a brand is now conditioned by its

Which invites the question: what qualities does a good content writer creator need? “Storytelling. Storytelling. Storytelling. I can’t

presence in the digital world. “But having a

THE POWER OF A WRITER

emphasize enough the power of storytelling

profile, channel or some media banners is not

But not everybody can be a good content

in branded content. Since the beginning of

enough for consumers to acknowledge your

creator and bring real value to a campaign or

time people have fallen for stories. Story-

activity. Original and innovative content, real

website. That’s part of the reason companies

telling is a very powerful tool for content

time marketing, influencers – they are all part

are sometimes willing to pay a lot of money

creators. They can influence people’s emo-

of the mix brands have on their plates in order

for a certain influencer that knows how to

tions while promoting the brand’s values and

to make their voices heard. Luckily for every-

draw his / her audience the right way towards

get those precious likes and shares,” outlined

body, content and creativity are infinite and so

a certain brand and create personalized

Cojocaru. And, although there are no recipes

are the opportunities,” said Lüba. Moreover,

content for a certain campaign or activation.

for a perfect content creator, “creatives are

brands are expected to be responsive and

Or hire writers that aren’t the face of the cam-

the cells that bring campaigns and ideas to

www.business-review.eu Business Review | January 2019

DIGITAL MARKETING 37

Ion Cojocaru, MRM//McCann life. They are the heart that pumps creativity all around us on a daily basis. You remember

Sebastian Lüba, Kubis Interactive argued the Groupee Renault representative. The MRM//McCann representative added,

dedicated to producing what the company calls “serialized content worth watching”.

that manifesto that convinced you to support

“Branded storytelling is not a brand message

What makes it worth watching is a good story.

a cause? Or that 20-second video you shared

that is positioned as content. This is a trap

“A story that comes in different and new

with your closest friends? How about the post

that inevitably leads to content that feels like

formats, yet built on human insights. Digging

you shared this morning on Facebook? They

advertising, which few people fall for in this

for a good insight is the ultimate respect you

all come from at least a creative mind that

era of authenticity and choice. Content needs

can pay your audience, which is willing to

knows how to inspire you and ignite your

to provide value for people beyond whatever

devote less and less precious time to watch-

imagination in just a few seconds,” said Lüba.

it is the brand or product does. This fine

ing your content in the digital world. I don’t

Returning to the theme of storytelling,

line between the native look and feel of the

fall for trends. Trends come and go, and so

Ionescu believes that once you are a good

content and its value for the brand it’s been

do influencers, but a good story built on a

storyteller, you have covered the basics. “But

produced for makes the story difficult to get

strong insight is timeless. Our mission is to

the channel is equally important, nowadays.

right and that’s where a content writer should

create premium short-form branded enter-

put the craft in.”

tainment formats while keeping the same quality people are used to. Think Netflix, but

JOURNALISTS. BLOGGERS. INFLUENCERS

shorter!” commented Cojocaru.

So who are the

ers have claimed a much desired spot in the

people chosen

digital ecosystem and are here to stay. “The

by companies

ideal partnership combines brands’ longed-

and agencies

for source of native advertising and authentic

as the creators

communication. The biggest disadvantage

of this content?

mainstream influencers now face is being

Besides creative

overused and overexposed, so they lose their

talents in house,

unique personalities. And then, micro influ-

how much do

encers come into play,” said Lüba.

Coming back to influencers, according to the Kubis Interactive representative, influenc-

The first eight seconds decide if your story

they work with talented writers and content

In this universe of macro and micro

lives or not, as this is the attention span in

providers (journalists, bloggers, influencers)

influencers is a whole debate about what

the digital world. There is no fixed recipe for

to help them boost their content value and

an influencer is. “We even wonder what his

success; even the best stories sometimes get

their influence on the market? How have the

or her power to shape consumer behavior

killed by sensationalism or negative news. I

influencers changed this industry and how do

is. However, worldwide known B2C brands

believe that a good content writer is passion-

insiders expect it to evolve?

admit their sales are related to influencers’

ate about life, about people, and has the cour-

When it comes to Renault’s corporate

recommendations. Powerful B2B brands have

age to shape an idea in such a way that it will

digital content, the company counts on good-

joined forces with well-known opinion lead-

not be forgotten. Good stories are meaningful

quality content, written by passionate people.

ers to generate buzz, engagement and, in the

and we are responsible for making them last,”

At MRM, Cojocaru runs a content division

end, sales,” said Ionescu.

www.business-review.eu Business Review | January 2019

38 DIGITAL MARKETING

Electronics, household appliance buys surge ahead of F&B The Romanian economy’s growth of the last few years has been driven largely by private consumption. The recovery that shoppers have been enjoying since 2015 meant that they again felt confident enough to splash out on household items, from fridges and stoves to TV sets. Meanwhile, food and beverage categories performed more modestly. By Aurel Dragan

In home shopping, all large consumer product segments have grown

Meanwhile, modern convenience stores

n the first nine months of this year, fami-

nels more often and spent more money per

lies in Romania spent 6.4 percent more on

purchase. Of the modern shopping channels,

have strengthened their position in house-

consumer goods than in the same period

hypermarkets remain the main destination

hold goods. These stores were chosen by

of last year, but figures show that most of this

for family shopping, but they continue to lose

nearly 4 out of 10 families, 15 percent more

growth was generated by higher prices, not

ground to other formats.

than last year. The increase in the number of

increasing volumes. According to Eurostat,

Supermarkets, on the other hand, posted

shoppers in these stores also comes as a result

food inflation increased by 4 percent year

the most dynamic growth in market share

of the high level of expansion that continued

on year. In this context, the volumes bought

between January and September 2018. The

during the first nine months of this year.

increased by almost 2 percent, but Romanians

purchasing frequency increased most in

did not migrate to higher price segments, as

this type of modern commerce format – by

product segments have grown. Dairy prod-

they did last year.

6 percent compared to January-September

ucts recorded the most dynamic growth (up

In home shopping, all large consumer

Modern trade channels have managed to

2017. Discount stores had the second biggest

by 9 percent), followed by household care

further strengthen their dominant position on

increase in market share. Behind this devel-

products (7.5 percent) and personal care prod-

the market and currently account for almost

opment are mainly the higher sums spent on

ucts (percent). Foods – both packaged and

60 percent of all household consumption

the purchase act. On average, a family spends

fresh, such as fruit, vegetables, meat, bakery

purchases. Shoppers bought from these chan-

RON 42 per visit in these formats.

products, etc., and beverages – including both

www.business-review.eu Business Review | January 2019

DIGITAL MARKETING 39

alcoholic and non-alcoholic beverages, rose

wholesale, other than food (10.3 percent),

quarter, according to GfK TEMAX, largely due

more modestly. Private labels (supermarketâ&#x20AC;&#x2122;s

wholesale of other machinery, equipment and

to the performance of the television category,

own brands) registered a slight increase in

supplies (9.8 percent), trade in (7.7 percent),

which recorded a 12 percent increase in the

share to reach 15 percent, after two years of

wholesale of IT and telecommunications

third quarter of 2018 compared to the same

stagnation.

equipment (6.7 percent) and the wholesale of

period of 2017.

National Institute of Statistics (INS) data

food, beverages and tobacco (4.2 percent).

(excluding trade in motor vehicles and motorcycles), in gross series, registered an increase

DIALING UP A PRICE RISE FOR SMARTPHONES

of 9.3 percent in the first nine months (year on

GfK TEMAX data for the first nine

year) as a result of increases in intermediation

months show that the Romanian

activities in wholesale (up by 16.1 percent),

durable goods market grew by 14

wholesale agricultural products and live

percent in value in the third quarter

animals (14 percent), specialized wholesale

of 2018 compared to the same period

of other products (12.5 percent), wholesale

of last year, reaching over EUR 2.22

of consumer goods, non-food goods (10.2

billion in the first nine months.

percent), wholesale of other goods machin-

The large household appliances sector increased its value by 11 percent and small

show that the turnover from wholesale trade

The growth engines were the

ery, equipment and supplies (8.5 percent),

telecom sector, which posted a 19

non-specialized wholesale (6.3 percent),

percent increase, and office equip-

wholesale of computer and telecommunica-

ment, up by 17 percent. Samsung

tion equipment (6 percent) and wholesale

remains the market leader with a

of food products, alcoholic beverages and

50 percent share both in value and

tobacco (4.1 percent).

in volumes, followed by Huawei, Apple and

appliances by 8 percent in the third quarter,

other players like Motorola (Lenovo), Asus,

after a 4.1 percent hike in the first semester

egory, consumer goods grew more than com-

LG, Sony, HTC, and Allview. In the first

for large household and 5.8 percent for small

puter and telecommunication equipment,

semester the smartphone market stood at 1.6

appliances.

meaning that people were keener to improve

million units sold and estimates for the whole

their lives than to have the latest smartphone.

year are close to 3.5 million handsets, taking

nine months of this year, growth engines are

into consideration that the last trimester is

similar. Overall, the market jumped by more

The data show that in the wholesale cat-

During the first three quarters of the year,

the busiest. The average price of a smart-

Analyzing market performance in the first

than 17 percent, to EUR 2.22 billion, thanks to the same categories: telecom, over 29

phone increased to EUR 150-200 this

percent, and office equipment, with over 16

year from EUR 100-150 in 2017. The

percent, GfK data show.

bulk of sales is still made in this price

In the small appliances area, the best

range, not with flagship models of

performing products in the first nine months

over EUR 500. The telecom market

of this year were: bread makers (up by 20.5

still accounts for two thirds of sales,

percent), multi-cookers (over 65 percent), and

popular for the discounted prices

ironing boards (45.5 percent).

that come with monthly installment packages. The same dynamic can be seen in

Video cameras and camcorders also marked a positive development during the first nine months of the year, with a gain of 12

the TV set market, where estimates

percent, but were still down by 10.5 percent

show that 2018 will record a 16 per-

in the third quarter of 2018 versus the same

cent growth, reaching 1.7-1.8 million

quarter of 2017. Meanwhile, the photo sector continues

the turnover from wholesale (excluding trade

units. This year was favorable for big screen

in motor vehicles and motorcycles), adjusted

TVs, over 100 cm in diagonal length, with

its downward trend, losing 10 percent of its

for the number of working days and seasonal-

high resolution and smart capabilities. The

value compared to July-September 2017.

ity, increased in nominal terms by 8.9 percent

average price went down slightly compared to

Next year is not expected to bring the

as a result of the rise in wholesale gross agri-

2017, due to the discounts from producers, to

same gains for large household items due to

cultural products and live animals (up by 19.9

stand at EUR 250-300. Samsung is the leader

the predicted stagnation of both incomes and

percent), specialized wholesale of other prod-

in this market, too, with a share of around 40

the overall economy. The smartphone market

ucts (13.2 percent), intermediation activities

percent. Electronic products as a total gained

may also stagnate, but with numbers close to

in wholesale (13 percent), consumer goods

nearly 12 percent in sales during the third

those recorded this year.

www.business-review.eu Business Review | January 2019

40 SUSTAINABILITY

Fashionable or sustainable? Why not both? H&M has a very active sustainability program worldwide. To cite a few stats, 59 percent of the cotton it uses is sustainably sourced, with a goal set for 2020 to use 100 percent sustainably-sourced cotton, and reducing emissions from its own operations by a further 21 percent compared to 2016. How is this working? We found out courtesy of Kasia Brzozowska, PR & marketing manager, H&M Group Romania, the one responsible for implementing H&Mâ&#x20AC;&#x2122;s sustainability strategy in Romania. By Oana Vasiliu

our customers to implement this way of understanding fashion in their everyday choices. We believe that sustainable style already is timeless, and it is the only right choice and way forward both for us and our customers. If we want to enjoy living on our planet, we all have to think and act in a sustainable way.

Since 2016, H&M has had a new sustainability strategy with a focus on the circular economy. How is this implemented in Romania? One of the pillars of our sustainability strategy is to become 100 percent circular and renewable. This includes a circular approach to how products are made and used. Our goal is to use only recycled or other sustainablysourced materials and renewable energy in all our direct operations. This strategy is implemented in Romania too. In all our stores customers can find an I:CO box where we encourage them to recycle their unwanted textiles. All stores are supplied with garments made from sustainable materials such as organic cotton, linen and Lyocell. We also sell a wide range of products from recycled materials such as cotton, polyester and wool. By 2030, we want all our materials to come from recycling or other sustainable sources.

How do consumers respond to your sustainability efforts? We know that our customers are more and more aware of sustainability related topics, and they expect big companies like ours to set an example for the entire fashion industry. They come to us with feedback and questions,

What does sustainable fashion mean for the H&M brand?

as a business opportunity. Investments in

and â&#x20AC;&#x201C; what is very rewarding for us â&#x20AC;&#x201C; they sup-

sustainability provide us with long-term busi-

port our initiatives. Every year we are collect-

Our vision is to lead the change towards circu-

ness opportunities that will keep the H&M

ing more garments given to us by customers

lar and renewable fashion, while being a fair

group relevant and successful in our rapidly

through the garment collection program all

and equal company. To achieve this, we have

changing world.

H&M stores run. We see also very big interest in our Conscious Exclusive collection which

developed an ambitious strategy with a broad range of external and internal experts. We are

Can sustainable style become timeless?

is launched each spring. We believe that a

taking a circular approach to how fashion is

At the H&M Group we believe that sustain-

company of our size and scale has a responsi-

made and used, and our vision is to become

able fashion and design should be available

bility, as well as great opportunity, to lead the

100 percent circular. This includes expanding

to everyone. Our vision is to lead the change

change towards a more sustainable fashion

the lifespan of our products as well as only

towards a circular and renewable fashion

and design industry. At H&M we think it is

using recycled or other sustainably-sourced

and design industry. Sustainable style is a

absolutely worth every effort to protect our

materials. We see investing in sustainability

conscious choice; we promote and encourage

planet and think about future generations.

www.business-review.eu Business Review | January 2019

42 CONTEMPORARY ART

Cultural spaces: what’s new downtown The openings of the last year have seen the Bucharest arts scene slowly but surely offer more and more interesting places to discover. BR took a look at the hot new stops on the city’s cultural circuit.

By Oana Vasiliu

A unique space where art and experiment meet and combine harmoniously, Cazul 101

ALBALB STORE 1 SERBAN PETRESCU STREET

is a house whose rooms are destined to be transformed and reinterpreted, or in other

MUSEUM OF RECENT ART 15 PRIMAVERII BOULEVARD

At AlbAlb it’s all about art and design and a

words, a space where contemporary art-

The latest private art gallery in Bucharest,

community of people who share the same

ists will hone their skills. Whether through

which currently features over 120 artworks

passion. It started as a place to take creative

exhibitions, residencies or debates, the place

displayed across 1,200 sqm on five levels, put

courses such as photography, contemporary

will house interactive and convivial events,

Bucharest on the world map of contemporary

art, history of film, and acting. Currently, the

challenging the reinvention of the ordinary.

art after its glamorous opening in mid-Oc-

space offers for sale different design prod-

tober. Viewed from the outside, the gallery

ucts, at affordable prices, and creative gift

seems to float above the ground, on a trans-

ideas.

parent, fully glazed ground floor, an effect

CONTEMP GALLERY 7 GEORGE VRANCA STREET

reinforced by the monolithic appearance of a sealed bunker on the upper floors, clothed

Open since this summer, the Contemp Gal-

in dark, which references the recent history

CARTURESTI MODUL 18-20 ACADEMIEI STREET, AT ARCHITECTURE’S UNIVERSITY GROUND FLOOR

lery aims to bring art closer to people, but

of totalitarianism and Romanian isolation.

also people closer to art. Under this curatorial

Bistro included, which makes the visit even

idea, the gallery collaborates exclusively with

more enjoyable.

The newly opened 180 sqm location contains

artists who have confirmed through their

a bookshop and a coffee shop, as well as an

previous work that they have something to

interior garden not previously open to the

say in the visual field. The books, music and

public. Working with the Ion Mincu Universi-

images are intended to shape consciousness,

ty of Architecture and Urbanism, the Cartur-

and the public utility of the gallery as an

esti owners have opened a meeting place for

interface is significant in a society dominated

SUPRAINFINIT GALLERY 22 MANTULEASA STREET

students, teachers, visual culture enthusiasts

by advertisements and fake news.

Having recently moved to Mantuleasa Street,

and readers looking for inspiration.

Suprainfinit Gallery is staging a program focused on both Romanian and foreign emerging artists, regarded as up-and-coming

CASA DACIA / THE INSTITUTE SPACE 12 DACIA BOULEVARD

HALUCINARIUM TRIAJ CREATIV 14 CALEA GIULESTI, 4TH FLOOR

on the international art scene. It also includes exhibitions of important names in the

Described as an eclectic industrial loft, this

Romanian art of the last 50 years. All artistic

In recent years, the beautiful neo-classical

place preserves elements of the old fac-

media are presented: painting, photography/

building just off Romana Square was the Mu-

tory design, transforming it into something

film/new-media, digital art, post-internet art,

seum for Literature, but now the space has

cultural and wow. It is currently hosting an

sculpture/installation, with a slight emphasis

become a home for Romanian contemporary

exhibition of contemporary design chairs,

on painting and photography. As a young gal-

artists. The impressive location offers a gen-

with pieces such as the Bubble Chair by Eero

lery, the commitment to showing art in vari-

erous space for exhibitions and performanc-

Aarnio created in 1968, La chaise lounge chair

ous venues is a growing process, a way to get

es, giving an overview of what’s currently

by Charles and Ray Eames from 1948, the

closer to and synthesize from many perspec-

happening on the hip local scene.

Barcelona Chair created by Ludwig Mies van

tives the social reality of chaotic and ever fas-

der Rohe in 1929, the Coconut Chair de-

cinating Bucharest, an interesting challenge

signed by George Nelson in 1955, the Bertoia

for the artists, owners and audience.

Diamond Chair by Harry Bertoia in 1952, and

CAZUL 101 101 DR. CAROL DAVILA STREET

many others, which are perfectly integrated with pieces by Romanian designers.

www.business-review.eu Business Review | January 2019

CONTEMPORARY ART 43

www.business-review.eu Business Review | January 2019

44 EXPAT EYE

Christmas quiz: have you gone Romanian? As BR gets in the festive spirit, our resident British expat rounds off the year with a quiz to answer the question you’ve been asking yourself for a while now: how Romanian are you? By Debbie Stowe 6. YOU’RE UNHAPPY WITH THE CURRENT STATE OF NATIONAL POLITICS. WHAT DO YOU DO ABOUT IT? (A) Write a stiff letter to your MP. (B) Go on an anti-Brexit march. (C) Gather nightly in Piata Victoriei and attempt to overthrow the government.

7. HOW DO YOU LIKE SPENDING TIME WITH YOUR FAMILY? (A) I don’t. Why do you think I emigrated? (B) A quiet lunch or maybe an outing to a museum.

1. YOU’RE STAYING WITH BRITISH RELATIVES FOR CHRISTMAS. THE INDOOR TEMPERATURE IS ABOUT 18 DEGREES. HOW DO YOU FEEL? (A) Absolutely fine. Why shouldn’t I? (B) A bit chilly. Better put on a jumper. (C) Absolutely freezing! Hike up the central heating to 30 degrees!

2. YOUR FRIENDS HAVE JUST BOUGHT A HOUSE, AND YOU’RE CURIOUS HOW MUCH IT COST. HOW DO YOU BROACH THE SUBJECT? (A) I don’t – not my business. I might look on

(A) Accept it and have a few sips before subtly abandoning the glass.

9. WHAT ARE SARMALE? (A) Are they those cabbage leaf rolls with the

(B) Politely decline. It tastes like paint strip-

rice? Pretty tasty.

per!

(B) One of the nicer Romanian dishes. (C) A delicious food that must be eaten at

Christmas and on every other occasion. They

4. YOU SETTLE DOWN TO WATCH SOME CHRISTMAS TV. WHAT SNACK IS ON YOUR LAP? (A) Nothing – I can’t focus on the Queen’s

originated in Romania you know… I don’t care

speech / James Bond / It’s a Wonderful Life if

copying us!

if they’re eaten all over the Balkans – they were made here first and everyone else is

I’m eating.

(B) Some crisps and popcorn. (C) A couple of bags of sunflower seeds and a

ANSWERS

couple more of pufuleti.

You’re still as British as a (very expensive)

Rightmove later, though.

MOSTLY AS warm beer on a drizzly day. Try to lighten up and get into the spirit of things!

5. AS YOU’RE OUT DOING SOME CHRISTMAS SHOPPING ON A MILD DECEMBER AFTERNOON, YOU SPOT A BABY WITHOUT A HAT. WHAT DO YOU DO? (A) Nothing – people’s parenting choices are

topic’s open, might as well ask them both

nobody else’s concern.

MOSTLY CS

how much they earn too.

(B) Tut a little. (C) March up to the parents, lecture them

Congratulations – you are certifiably Roma-

3. YOUR ROMANIAN FRIENDS OFFER YOU A FESTIVE GLASS OF TUICA. HOW DO YOU RESPOND?

about how cold it is and try to cover the

soup and let’s dance until dawn!

child’s head forcibly with any piece of fabric

Merry Christmas to our expat and Romanian

to hand.

readers alike – ne vedem la anul!

(B) Ask indirectly, like “Would it be terribly rude if I were to ask how much you paid?” or “And how much do houses like this go for in this neighborhood these days?”

MOSTLY BS You have adjusted pretty well to life in Romania, without abandoning your old values and habits. Pour yourself a celebratory Ursus!

nian! Crack open the tuica, heat up the tripe

www.business-review.eu Business Review | January 2019

46 CITY

Cultural calendar

By Oana Vasiliu

les (bass), Rafa de Cuba (voice), Luis Palomino (saxophone & flute) and Gilberto Ortega (percussion) will do the honors. Tickets: RON 35.

Schiller concert January 19, Arenele Roamne

The Nutcracker ballet January 6, National Opera House

the acronym), who soon co-

The German artist returns to

opted like-minded artists. Eager

Bucharest with his Klangwelten

to challenge the prevailing visual

tour, which he has already taken

One of the premieres of this

idioms and their limits as well as

all over Europe. Intoxicating

season is The Nutcracker, a new

cultural and geographical bound-

sounds, spectacular sequences

production by the National Opera

aries, the ideas and vision of the

and magical melodies in award-

House of what is probably one of

group survived, its influence

winning surround sound are

the best loved Christmas stories.

reaching far into contemporary

The scenography is by Andreea

art. Born as a reaction against the

night in the company of Sym-

Koch, while Iurie Florea will

grim experiences of World War II,

phactory Orchestra, mezzo-

conduct. A must-see for fans of

works by individual artists such

soprano Maria Miron (Jinga),

festive dance.

as Pierre Alechinsky, Karel Appel,

baritone Catalin Toropoc and

Constant and Corneille nourish a

soprano Madalina Barbu. Mozart,

child-like spontaneity and vivid

Rossini, Donizetti, Brahms,

colors reminiscent of an in-born,

Tchaikovsky, Bizet, Strauss,

original artistic and communica-

Delibes, Gounod and Puccini are

tion drive; other works, by pairs

all on the musical menu, which

of artists such as Karel Appel

will include famous arias, duets

& Christian Dotremont, Pierre

and love stories, animated by the

Alechinsky & Carl-Henning Ped-

vibrant and colorful voices of the

ersen and Joseph Noiret & Serge

three soloists. Tickets prices from

Vandercam, convey symbolic

RON 95 to RON 150.

Cobra et Cie. exhibition Until January 27, National Museum of Art

promised. Ticket prices from RON 89 to RON 135.

Alice in Wonderland January 19-20, Metropolitan Circus

messages through word-paintings in which writing doubles up

Cubano Night January 17, National Peasant Museum

Alice in Wonderland is an invita-

Samba, rumba, mambo, cha-cha,

not only take three days, but

salsa and of course well known

for life. Over three days, lov-

Latin-American songs will bring

ers of the circus are invited to a

CoBrA. The rather short-lived

Celebrate 2019: Classical Arias and Dances Concert January 7, National Theatre Bucharest

wintertime Bucharest some

colorful spectacle that takes its

collective (1948-1951) was set up

The Calea Victoriei Foundation

much needed heat on Cubano

inspiration from the classic Lewis

by five artists from Copenhagen,

and conductor Tiberiu Soare are

Night. Carlos Enrique (piano), Ati

Carroll novel. Ticket prices from

Brussels, and Amsterdam (hence

inviting the public to a magical

de Chile (congas), Raubel Gonza-

RON 21 to RON 130.

Based on various printing tech-

as a strong visual element.

niques, the Cobra et Cie. exhibition features works by Belgian visual artists who shaped the vision of the avant-garde group

tion to the land where miracles