BR/02/2020

STRONG GROWTH FOR NEW RESIDENTIAL AND OFFICE SPACE IN 2019 ROMANIA RESUMES THE LIBERALISATION OF ITS ENERGY MARKET

WHERE ROMANIA TALKS BUSINESS February, 2020 / Volume 24, Issue 1

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6 22

LOOKING FOR A NEW JOB OPPORTUNITY? SOFTWARE INDUSTRY HAS YOU COVERED 30 BUCHAREST FITNESS MARKET: COMPETITIVE AND FRAGMENTED

35

Dreamstime

ROMANIA STRIVES TO MAINTAIN ECONOMIC GROWTH

www.business-review.eu Business Review | January 2020

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi

6 Record-breaking transactions, strong growth for new residential and office space in 2019

• Editor-in-Chief •

8 Retail centres should be pillars of their communities

COVER STORY

10 Romania trying

What to expect from 2020

to maintain economic growth in busy electoral year

ENTREPRENEURSHIP

W

ith two rounds of elections approaching, 2020 looks like it’s going to be a very challenging year for the gov-

24 Hot industries for local

ernment as it has little room for maneuver, but foreign

startup investors in 2020

investments could bring a boost to the local economy. At the same

26 Startups competing for

time, the electoral year means that the business environment faces

talent in tight labour market

almost no risk of sudden changes in fiscal policy.

Business people’s views at the end of last year and in the begin-

FITNESS

ning of 2020 were divided into two categories, so we can identify two different perspectives: some managers and founders explicitly say they want tax reductions, while others may accept tax increases as long as the government uses them to launch projects and investments in education and healthcare.

Therefore, after a period with many uncertainties and fiscal surprises, local entrepreneurs and managers of multinationals prefer

35 Bucharest fitness market: competitive and fragmented

stability, may even agree with some tax hikes, and understand that

CITY

the public budget will be difficult for the government to manage in 2020.

In 2019, the Romanian economy grew by around 4 percent, but our country is now at the end of a decade-long growth cycle and faces the challenge of finding new drivers of development as the resources supporting wage-led growth policies have run out. At the end of this growth cycle, despite the numerous achievements we

41 This year’s top events for music aficiodados

42 Got detox on your

could list, Romania still has a lot of improvements to make: it has

New Year’s resolutions list?

failed to upgrade its road and rail infrastructure, and its rural areas

44 Retrospective:

have remained poorer than those of its regional peers. Advancing on these goals could be crucial in making Romania more attractive

New spaces for culture and alternative art

for investors.

46 Cultural calendar

EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania­­­­ LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

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4 NEWS

WHO’S NEWS BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at mihai.cristea@business-review.eu

Pharmaceutical retail revenues up 15 percent in 2019

tion. The companies operating in this sector registered a current liquidity of 1.05 during 2018, with working capital being exposed to negative shocks, in a context of volatility (lower revenues or non-collection of receivables).

“The financial vulnerability of pharmacies in Romania has been marked by several trends observed in recent years.

First of all, the growth of the

Josef Reiter is the new General Director of BMW Group Romania. Reiter has been with BMW for 25 years, having previously served as Area Manager for Austria, Sales Director in South Korea, General Director of the Czech and Slovakian branches, and most recently as head of the global division at BMW Group Web. In his previous position at BMW, Reiter contributed to the development of the group’s online marketing and communication platform, revamping it into a successful online sales platform.

Angela Cretu has been appointed CEO of Avon, following the company’s acquisition by Brazilian group Natura & Co. Prior to her January 2020 appointment, Angela served as the company’s Vice President for Central Europe, a position she had held since 2016. Angela Cretu graduated from the Bucharest Academy of Economic Studies and completed an executive education programme at the London Business School. She has been with Avon since 1998, when she started as an Area Sales Manager. page 5

pharmacy network (especially among the big chains) has increased competition, leading to a generalisation of discounts offered to customers. Secondly, the expansion of retail points financed by credit suppliers caused a decrease in

The cumulative market share held by the most important 10 players is 31 percent

the working capital, with these companies being very vulnerable to the late collection of

By Aurel Constantin

debts from the social insurThe study aggregated data

ance system or the slow sale

Coface Romania on the “retail

from 4,425 companies that sub-

of stocks. The third essential

of pharmaceutical products

mitted their financial statements

aspect refers to the increase of

in specialised stores” sector

for 2018 (as of September 2019)

dividends distributed in the

indicates a positive evolution

and generated a consolidated

2016-2017 period, their cumula-

of revenues in 2018, which

turnover of RON 19.07 billion.

tive level reaching RON 1.1 bil-

increased by approximately 15

The cumulative market share

lion, almost half the total of the

percent compared to 2017, with

held by the most important 10

last decade,” said Iancu Guda,

a slightly increased profitability

players is 31 percent, which indi-

Services Director at Coface

rate.

cates a low degree of concentra-

Romania.

A new study conducted by

Mercedes-Benz Romania and ENGIE Romania partner up to promote electric mobility

By Mihai Cristea Mercedes-Benz Romania and

smart EQ clients who choose to

ENGIE Romania announced a

buy electric or hybrid plug-in

new partnership at the national

cars. Those interested can benefit

level, promoting the Elvi charg-

from an integrated package of

ing stations produced by EVBox,

consulting services, installation,

a company owned by ENGIE. The

maintenance, online monitoring,

partnership marks an attempt to

and technical assistance for their

facilitate access to home charging

electric stations. Clients who

stations for Mercedes-Benz and

choose ENGIE Romania as their

Throughout this initiative, ENGIE’s clients will participate in the reduction of carbon emissions

www.business-review.eu Business Review | February 2020

NEWS 5

Global technical consumer goods market to grow by 2.5 percent in 2020 Alberto Spinelli is the new Marketing and Communication Director of Lenovo for the EMEA region.

Spinelli comes into the job with a wealth of experience in the hardware and digital service sectors. He served as a senior executive at companies such as Canon and Intel, but he is also a successful entrepreneur, with several launched start-ups under his belt.

By Aurel Constantin After a stable 2019, GfK experts expect the global market for technical consumer goods to record a value growth of +2.5 percent in 2020. Consumers across the world will spend an estimated EUR 1.05 trillion.

Telecoms (+3 percent), Small Domestic Appliances (+8 percent) and Major Domestic Appliances (+2 percent) will drive the growth. Sales of IT, Office Products and Consumer Electronics are forecasted to remain stable and almost unchanged from last year.

The positive growth of the tech and durable goods market in 2020 will take place across all regions 5G, the telecom sector will return

Domestic Appliances will con-

to growth after a turbulent 2019.

tinue, driven by both emerging

tech and durable goods market

The demand for smartphones in

and developed markets. At

in 2020 will take place across

China and emerging Asia will be

the same time, consumers are

all regions, ranging from 2 to 3

among the major drivers not just

becoming increasingly digital

percent in value. The regional

for the telecom sector, but for

and concerned about sustain-

mix remains almost unchanged

the overall TCG market. Innova-

ability and how governments,

from 2019, when the Asia-Pa-

tion, performance and premium-

manufacturers, retailers and

cific regions accounted for the

ization will continue to be the

consumers can be more en-

majority of the sales turnover

key consumer trends boosting

vironmentally friendly in the

with 43 percent, while every

demand. With convenience,

tech and durable goods space,”

fourth Euro was spent in

health and well-being winning

said Pavlin Lazarov, GfK’s

Europe. “We assume that with

consumer attention and spend-

expert on technical consumer

the expansion and spread of

ing, the strong demand for Small

goods.

The positive growth of the

Magdalena Sniegocka has taken over CVI’s investments in Romania. Sniegocka joined CVI in February 2018 as an Investment Director and Member of the Investment Committee. In her professional career, Magdalena has led or participated in over USD 12 billion worth of investments and capital raising transactions as well as supervised multiple company portfolios. She started her career in London in Acquisition & Leveraged Finance at Lehman Brothers and Nomura.

electricity provider can also benefit from an e-mobility subscription, with access to more than 160 charging points countrywide, assuring public area charging for electric cars within the limit of 3,000 km. “The transition to zero carbon emissions is the heart of ENGIE Romania’s strategy, developing high-performance and innovative solutions for our clients. This will enable them to participate in the reduction of carbon emissions,” says Nicolas Richard, Marketing & Sales Director at ENGIE Romania.

Mircea Ciucur is the new manager of the solutions team at ELKO Romania, one of the biggest distribution companies in the Romanian IT&C industry.

Ciucur has previously worked in the company, as General Manager between 1999 and 2011. His career in the industry continued in roles such as Head of the IT Department at DOMO, CEO at IT&S, and Managing Director at ALEF Distribution, until he rejoined ELKO in December 2019.

www.business-review.eu Business Review | February 2020

6 REAL ESTATE

Record-breaking transactions, strong growth for new residential and office space in 2019 The construction of homes and offices recorded a good year in 2019. With 62,000 new apartments delivered to the market, 2019 passed the previous record of 57,600 from 2018.

There was also a record level of transactions in the office sector, with over 450,000 square meters changing owners.

By Aurel Constantin of residential, office or mixed-use projects, with some projects also potentially including a hotel. An interesting fact is that almost 90 percent of the traded area was located in sectors 1 and 2, as developers are focusing on the central area of the city through purchases made on Calea Victoriei, Dorobanti, Kiseleff or Doamnei, but also on the central-northern area, near the big office hotspots.

“In 2019, developers’ interest for office projects was reconfirmed and it materialised through their concern to secure their pipelines for the coming years. The same trend is confirmed in the residential segment, and we can note an expansion of the areas of interest and the coverage of some developers, who have made much more diverse purchases outside the traditional areas of interest. As for the buyer’s profile, we’ve noticed the entry of Prices went up by 10 percent in 2019 compared to 2018 for new apartments

I

developers from other cities on the Bucharest market, as well as decisions by some landowners to start projects of their own, posi-

n the big cities, 40,000 old apartments

of large real estate developers have secured

tioning themselves as new developers on the

and 15,000 new ones were put up for

the land they needed for new projects consist-

market,” said Alexandru Mitrache, Head of

sale. Prices went up by 7 percent in 2019

ing of over 6,000 homes and 130,000 square

Transactions, Land & Investment, Cushman &

compared to 2018 for old housing and by

meters of offices. The cumulative area of the

Wakefield Echinox.

10 percent for new apartments, according

purchased land amounts to 36 hectares, and

to imobiliare.ro data. The price difference in Bucharest between new apartments in the central area versus those the suburbs was EUR 40,000 (EUR 93,000 versus EUR 53,000), up from EUR 30,000 in 2018. For old apartments, the price difference was EUR 16,000 (EUR 77,000 versus EUR 61,000), up from EUR 15,000 in 2018.

The acquisition of land for new developments also reached high levels in 2019. According to data from real estate consultancy firm Cushman & Wakefield Echinox, a number

the value of transactions is estimated at EUR 170 million, which is equivalent to an average

LAND UNDER FORMER FACTORIES SEEN AS “GOLD MINE” FOR REAL ESTATE

price of EUR 470 per square meter.

Among the most important land transactions

In Bucharest, there were 24 major transactions with land intended for the development

of 2019 were the purchase of a 2.6-hectare plot from the former Dacia Textile factory in

www.business-review.eu Business Review | February 2020

REAL ESTATE 7

the Bucurestii Noi neighbourhood (where

sqm), followed by Slatina, with 13 percent of

operating in the automotive sector. However,

Skanska will build an office project), the two

the demand (62,000 transacted sqm).

these types of projects have longer imple-

hectares of the Frottierex factory in the Barbu

The largest transaction was carried out

mentation periods, extending by up to 18-24

Vacarescu area (where Turkish Caba Grup will

by JLL Romania, namely the lease of almost

months from when the first discussions take

develop a mixed-use project) or the 5,000-

72,000 sqm by Profi in CTP Bucharest West

place. In the case of logistics projects, the

tion market of Austrian developers such as

park. Other notable transactions in which

implementation period usually lasts up to

Strabag Real Estate, S + B Gruppe or S Immo

JLL was involved in 2019 were the lease of

one year.

was a notable move, while Israeli developers

16,000 square meters to Urgent Cargus in the

were very active as well,” Alexandru Mitrache

P3 Bucharest A1 Park and the lease of 8,400

spaces exceeded 4.3 million square meters,

added.

square meters to Marelvi Impex in the MLP

which was double the volume recorded in

sqm plot on Doamnei street, in the heart of the Capital, purchased by S + B Gruppe.

Developers with Romanian capital, such as One United, were the most active in 2019, having had a share of about 39 percent of the total transaction value. “At the same time, the return to the land acquisi-

Bucharest has turned into one of the most dynamic economies in the CEE region. This is

Bucharest West Park.

Of all the spaces leased na-

In 2019, the stock of modern industrial

2015.

Another trend in 2019 was developers’ high interest

closely related to its labour force, which offers

tion-wide over the last year,

a nice mix of good language skills and much

more than 150,000 square

lower costs than Western Europe. Romania

meters (approximately

spaces that are small

and Bucharest do have a couple of things that

32 percent) represented

but show great growth

set it apart from regional peers and even from

transactions concluded

potential. Such clients,

more developed markets in Europe: a very

directly between own-

most of whom are cur-

strong IT&C community.

ers and tenants.

“While vacancy is expected to be on the rise over the next couple of years, there are

rently located on the former industrial platforms

The growth in 2019 rose to the previous year’s

some silver linings. Bucharest still has quite

level, when record demand for

a lot of stock built about a decade ago and

industrial spaces had been recorded

part of it would not meet today’s qualitative/

on the market.

technical standards. Vacancy tends to vary

in attracting clients with

“The demand for industrial spaces has

in large cities, will have to migrate to modern industrial spaces in order to provide better work conditions for their employees, but also to comply with stricter regulations regarding fire safety permits.

quite a lot from one submarket to another and

maintained its positive evolution over the

even among projects in the same submarket.

past few years. The entry of new investors

Furthermore, on a relative (per capita) basis,

and the diversity of the locations

Bucharest’s office surface is still around one

in which they’re developing

third below Warsaw’s, which is also signifi-

new projects has brought

cantly below Western European markets,

extra competition on the

so there might still be quite a lot of room

market, maintaining its

for growth,” said Sebastian Dragomir, Office

dynamics. We follow the

smaller units of 800-

Advisory Director at Colliers International

evolution of demand

1,500 sqm, as well as

Romania.

with great interest,

large units in industrial

bearing in mind the fact

buildings spreading on

“We can see increased interest from new investors in developing modern industrial projects within the city of Bucharest. Here we can refer both to projects that allow the leasing of

several floors. These types

DEMAND FOR SMALL INDUSTRIAL SPACES

that the industrial market

The demand for industrial and logistics

reported record demand

of buildings are taken into

spaces in Romania in 2019 reached a total of

over the past four years,

account in areas in which the

about 476,000 sqm, a value comparable to

especially given the expansion of

price of the land is high and an in-

that of 2018, when transactions amounted to

retail and logistics companies,” stated Costin

dustrial development would not provide the

a total of 514,000 sqm. Bucharest attracted

Banica, Head of the Industrial Department at

level of performance expected by investors.

the largest demand of industrial and logistics

JLL.

We believe that 2020 will bring the first indus-

spaces in the country, with nearly 76 percent of total purchases (approximately 360,000

Also noticeable was the increase in production and industrial spaces from companies

trial projects developed on multiple floors in Romania,” said Costin Banica.

www.business-review.eu Business Review | February 2020

8 REAL ESTATE

Retail centres should be pillars of their communities BR sat down with Fulga Dinu, country manager for operations at Immofinanz Romania, about the local retail market’s adoption of new international trends and the areas that have remained unexplored on the Romanian market.

By Anda Sebesi One of the obvious trends on the local market is the online-offline mix and the creative ways of adapting the online concept to the offline world. Can you please develop this idea?

Our entire world is rapidly digitalizing and we need to adapt to this global trend. An impor-

more sophisticated and have moved from

area in VIVO! Cluj-Napoca, which has at-

tant point refers to consistency in commu-

providing a product to offering a service or

tracted famous international brands like Peek

nication, both online and offline, taking into

experience. The biggest challenge for retail-

& Cloppenburg: the performance of the first

account that the new generation of buyers no

ers nowadays is to keep improving the retail

such store in the Transylvanian region has

longer sees any difference between online and

customers’ experience and truly capitalise

already gone beyond expectations. In terms of

offline shopping.

on the advantages the offline environment

unexplored areas, as far as shopping centres

offers compared to the online world. From

are concerned, the focus should be placed on

online stores and physical stores and have un-

this point of view, factors like the fragrances,

the needs of the entire family.

derstood that these two channels need to be

sounds, and human interactions that can be

complementary in order to further develop.

found at a store are hard to replace.

At the moment, many brands have both

use to adapt the online concept to the offline

very much focused on creating good quality

environment, and one consists of creating

experiences that are supplemented by leisure

awareness for a product online and offering

areas, children’s playgrounds and family

certain bonuses when the purchase is made in

areas. Based on the diversity of the services

Recently, almost all retail centres in Romania have been transformed into entertainment platforms by balancing shopping and leisure facilities. In your opinion, what is the next step in this direction on the local market?

the physical store. Similar approaches are the

provided, our VIVO! shopping centres have

Entertainment definitely plays a major role

in-store pick-up of products bought online

become real hubs for the communities they

in shopping centres, and customer experi-

or the option to return those products in the

serve. And it is our goal to support the devel-

ence can be improved even further with

store, and vice versa, namely customers being

opment of the communities we are part of.

the implementation of new technological

There are several techniques that companies

As a retail landlord, IMMOFINANZ is

able to place orders online while they’re in the physical store.

developments. As for the shopping experi-

What are the main growth drivers of the current Romanian retail scene and what are some of the unexplored areas?

ence, retailers will continue to digitalize the

The recent economic landscape has been

but not least, retail centres should be pillars

favourable to retail consumption. A higher

of their communities by offering support and

purchasing power has definitely brought

resources for cultural, educational and social

The development of technology heavily

significant increases to Romanian food and

activities. So far, IMMOFINANZ has proven to

impacts consumer behavior; therefore, our

non-food consumption. One of the best

be a proud partner of the Romanian commu-

customers’ wishes have become more and

examples would be the newly-refurbished

nities where it operates its shopping centres.

Another trend is the shift towards creating an experience in the store. What does this shift imply and how is it translated to real estate projects in Romania?

shopping process, in order to customise it for each and every one of their customers. Last

10 COVER STORY

Dreamstime

www.business-review.eu Business Review | February 2020

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COVER STORY 11

ROMANIA TRYING TO MAINTAIN ECONOMIC GROWTH IN BUSY ELECTORAL YEAR The new government has little room for manoeuvre in the economy in 2020 as two rounds of elections approach, but foreign investment - both direct and portfolio investments - could bring a boost to local activity. On the other hand, the business environment faces almost no risk of sudden changes in fiscal policy in an electoral year.

By Sorin Melenciuc

I

n 2019, the Romanian economy grew by around 4 percent, a decent pace given the many challenges experienced last year due mainly to the former government’s policies. In fact, the

local economy is now at the end of a decade-long growth cycle and faces the challenge of finding new drivers of development as the resources supporting wage-led growth policies have run out. At the end of this growth cycle, there are a lot of achievements to list, but plenty of red flags remain on the board as well.

ACHIEVEMENTS In 2019, Romania’s gross domestic product (GDP) was certainly close to EUR 220 billion, or more than EUR 11,000 per inhabitant, and the average wage rose to around EUR 650 per month. The unemployment rate is also at a three-decade low. It is still a low economic level compared to western European economies, but it is by far the highest ever achieved in the country’s history. From a regional perspective, Romania is now more developed than all of its neighbour-

www.business-review.eu Business Review | February 2020

12 COVER STORY

ing countries, with the exception of Hungary.

In fact, in terms of GDP, Romania is by far the largest economy in its region, overtaking all of its neighbours – Romania’s GDP is as large as the GDPs of Hungary, Serbia and Bulgaria combined. At

investments worth EUR 83.8 billion Romania by the end of June 2019, an all-time high, up 7 percent (EUR 5.5 billion) against June 2018.

Much of this new investment was spent on real estate develop-

the same time, the differences

ments, as Romania’s big cities are

between Romania and its more

experiencing urban regeneration

developed regional rivals, such as

and improvement. New residential

Hungary, Slovakia or Poland, have

compounds, brand new office tow-

eroded during the last few years

ers and retail projects are under

as the south-eastern European

development in Bucharest, Cluj,

country has managed to maintain

Timisoara and Iasi, Romania’s big-

higher growth paces.

gest cities, and they are changing

Another positive trend is a

the country’s image.

surge in investments last year.

“The contribution of gross fixed

RED FLAGS

capital formation has consider-

But all these achievements have

ably exceeded that of household

come at a cost. Romania’s current

consumption, reaching an 11-year

account balance of payments

high, mainly on account of invest-

registered a deficit of EUR 9.92

ments in new construction works,

billion in the first 11 months of last

as well as the pick-up in equip-

year, up 21 percent compared to

ment purchases, with a favourable

January-November 2018, while the

impact on the economy’s future

fiscal deficit was estimated at 4.3

growth potential,” according to a recent Romanian central bank re-

percent of GDP for the entire year, the highest level in the EU and

port. Foreign direct investment (FDI), a long-term source of capital

significantly above the 3 percent-ceiling imposed by the European

for development, could be seen as a positive surprise of the last

bloc’s treaties.

couple of years.

At the same time, there are few remaining drivers of growth.

Official data show that FDI in

In the first nine months of 2019,

Romania totalled EUR 5.15 bil-

Romania’s GDP rose by 4 percent,

lion in January-November 2019,

but the increase was mainly due

compared to EUR 5.02 billion

to a surge in construction, by 16.4

in the same period of 2018, “of

percent year-on-year, in the infor-

which equity (including estimated

mation and communications sec-

net reinvestment of earnings)

tor (8.9 percent), in entertainment,

amounted to EUR 4.4 billion and

culture and recreation activities as

intercompany lending recorded a

well as in the repair of households’

net value of EUR 649 million,” the

goods and other services (8.6

BNR writes.

percent).

This increase was “determined

But industry, a sector that ac-

by an improvement of the percep-

counts for almost a quarter of the

tion of investment risk (after the

country’s GDP, declined by 1 per-

European Parliamentary elections)

cent year-on-year in January-Sep-

and of the Romanian economy’s

tember 2019, agriculture dropped

potential in the medium term

by 4.1 percent, while activity in

(considered to be higher than the

banking and insurance decreased

potential of other countries in the

by 0.4 percent. The industrial sec-

region),” Banca Transilvania analysts indicated in a research note. This means that FDI in Romania amounted to more than EUR 10 billion over two years, covering about half of the external deficit registered during the same period.

Following this new influx of foreign investment, the stock of FDI

tor’s underperformance continued in the last quarter of 2019.

“All three major industrial groups (manufacturing, energy and mining) were deeply in the red. At the same time, local manufacturing was among the weakest in the EU in November (-4.6 percent

in Romania is very likely to reach the EUR 90 billion threshold in

y/y). This development had been visible since the spring of 2019 and

2020. Official data show that foreign investors had made total direct

suggests a series of price and non-price competitiveness issues for

www.business-review.eu Business Review | February 2020

COVER STORY 13

local manufacturing, besides the impact of the global trade conflict

For the first time in decades, Romania now seems to be mature

and changes in the car industry,” BCR’s analyst Eugen Sinca wrote in

enough to address this issue of rising importance among its inhabit-

a research note. At the same time, Romania’s exports resumed the

ants. It is no wonder that quality of life has become so important in

widening trend in their negative contribution to economic growth

Romania, as millions of people have already emigrated to wealthier

amid a more pronounced reaccel-

countries and have enjoyed the

eration in the growth of imports

living standards offered by those

relative to that of exports of goods

places. Meanwhile, the other mil-

and services.

lions of Romanians who chose to

“The trends were viewed as

remain in their country have had

particularly worrisome by some

the opportunity to travel and com-

Board members, inter alia in the

pare their living standards with

context in which the weakening

those in different countries and

of exports had also coupled with a

are now pressuring the authorities

faster decline in industrial produc-

to improve the situation at home.

tion, mainly on the back of the

In terms of quality of life,

automotive segment, carrying the

Romania’s cities still have plenty

potential to increase the negative

of improvements to make if they

contribution of that sector to GDP

want to be compared with cities

dynamics, on the supply side,” Ro-

in the western world. In Mercer’s

mania’s central bank noted. Fiscal

2019 edition of the “Quality of liv-

woes coupled with weak external

ing city ranking” survey, Bucharest

demand and the workforce crisis

moved down two places, coming

are factors that limit the growth

in at 109 out of 231 ranked cities.

potential in 2020 and the following years and put pressure on the

Despite its huge financial resources and high earnings, Bucharest is

government and businesses alike to find new development strate-

affected by poor public management, incompetence, and stunning

gies, experts say.

corruption.

But other cities in Romania have started to really improve. In

TARGETS FOR THE NEXT DECADE

some cities in Transylvania, where urban life emerged earlier and

In this environment of lower fiscal resources, the government needs

was historically more sophisticated, the quality of life is much high-

to address some urgent goals. Unlike Hungary or Poland, Romania

er and the situation is improving every year, helped by EU funds.

has failed to improve its road and rail infrastructure, and its rural areas have remained poorer than those of its regional peers. These goals could be seen as crucial in making Romania more attractive for investors – and even more importantly, for its own people.

Official data suggest that Romanians are still leaving their country at a worrying rate and many local experts are trying to find the real drivers behind this trend. Some entrepreneurs and politicians think they have the answer: beyond earnings, people leave mainly because they’re seeking a better quality of life for themselves and their children.

Cities like Cluj, Sibiu, Oradea or Timisoara are attracting people and

Many experts suggest that investment in infrastructure – and

developing, while cities in other parts of the country still offer low

this includes a large spectrum of targets, from roads and railroads to

quality of life and provide little hope to their residents – and they

urban or rural infrastructure - is key to improving quality of life. In

are losing people at a rapid pace.

many developing countries, this has also become a political issue, as

Improving quality of life is crucial in shaping Romania’s future,

politicians understand that promising a good quality of life could be

and this could be seen as one of the country’s main priorities in the

the winning ticket in the electoral lottery.

next decade.

www.business-review.eu Business Review | February 2020

14 COVER STORY

The outlook for FDI in Romania in 2020 Against the backdrop of declining global demand, ongoing trade tensions and significantly reduced growth in the Eurozone, the forecast for the evolution of foreign investments is optimistic in 2020. EU membership, fairly good international relations, low public debt, a competitive industrial sector and an adequate business environment are positive things to be considered by investors, but what to expect for FDI in Romania in 2020?

By Claudiu Vrinceanu THE POTENTIAL OF NEW FOREIGN INVESTMENTS IN IT&C

percent of expenses, respectively

An important question regarding

to the “Worldwide R&D Incen-

the evolution of investments in

tives Reference Guide 2019” global

2020 is whether the value of IT&C

study by EY. “However, countries

FDI will increase. In recent years,

such as Italy have introduced two

fiscal facilities have stimulated

less generous measures since the

foreign investments and kept

previous fiscal year, namely the

the Romanian IT industry com-

obligation to certify cost effi-

petitive, in a race for investments

ciency and the technical report to

with other countries that have

describe the R&D activities carried

zero income taxes for program-

out by a company,” said Claudia

mers, such as Ukraine, Poland or

Sofianu, partner in the Tax and

Belarus. The deficit in IT workforce

Legal Assistance Department at EY

at the EU level is so great that the

Romania.

200 percent in Poland, according

elimination of fiscal facilities could result in a massive reduction in the number of specialists in the coun-

CAN ROMANIA ATTRACT A NEW CAR MANUFACTURER?

try, and a major negative impact on

2020 should be the year during

inbound investments (FDI).

which a new plan is developed to

In Romania, there has been a

attract a third car manufacturer

lot of talk lately about tax facili-

to Romania, adding to Renault in

ties in the IT field, and some have

Pitesti and Ford in Craiova, in the

even floated the idea of eliminating

context of Romania having lost

them. It is premature to say whether these tax facilities will in fact

out on three major investments in the sector over the past ten years.

be eliminated, but a debate on finding a new competitive advantage

Volkswagen possibly picking Romania as the location for a new

for Romanian IT is needed in the context of the competition with

multi-brand vehicle assembly plant was widely debated last year.

countries in the region to attract foreign investors.

A possible solution would be in the field of Research and Devel-

Besides some important advantages that a country could offer to an automaker - infrastructure, a competitive labour force and a large

opment. From a government’s point of view, economic growth and

network of original equipment manufacturers (OEM) concentrated

attracting foreign investment remain the main objectives, and the

in the region - the strategy to attract a new investor in the automo-

levers used in other countries have mainly been related to fiscal

tive sector will need to include projects such as: a dual schooling

policies applicable among players in the R&D field. Other countries

system to train human resources in cooperation with the academic

introduced extremely attrac-

and research environments, state

tive fiscal measures in 2019, for

aid for utilities through the setup

example Indonesia, which an-

of an “industrial park” comprising

nounced generous tax deductions

the factory and several component

of up to 300 percent for activities

suppliers, and the creation of a

carried out on its territory. Other

dedicated center for Research,

examples we can mention are:

Advanced Technologies and Digi-

Singapore’s increase in the value

tisation.

of tax deductions of up to 250

On a global level, Romania

www.business-review.eu Business Review | February 2020

COVER STORY 15

needs strategic thinking regarding the development of its car indus-

nia. Japan is the largest Asian investor in Romania and 40,000 jobs

try, including a digital component. This is necessary in the context in

have been created in Romania by Japanese companies, according to

which the European Union is lagging behind other global competi-

the Japanese Foreign Affairs Ministry.

tors (US, Southeast Asia), not so much in terms of production, but rather in the digitisation of products and processes.

STATE AID SCHEMES Romania continues to provide investors with access to several types

THE INVEST ROMANIA STRATEGY IN 2020 Invest Romania, a part of the Economy Ministry, is the “one-stopshop” for foreign investors, and an ideal place for an investor to build

of incentives, under various types of regional state aid schemes.

2020 will be the last year of the State Aid Scheme-GR 807/2014, according to which an investor can access a maximum of 50 percent

an institutional link with public

of non-refundable aid from an in-

authorities.

vestment of at least EUR 1 million, provided that they pay corporate

In recent years, Invest Romania, the governmental department

tax, hire new employees, and pay

dedicated to attracting foreign

taxes to the local budget adding up

investors, has been engaged in

to at least the amount as the grant

constant activity, but has not

they received within 5 years from

shined through special initiatives,

the completion of the investment.

Moreover, the Economy Minis-

so it remains to be seen what the strategy of this structure will be in

try recently decided to take charge

2020, as well as in the medium and

of the state aid programme for film

long term. For the time being, as a

production in Romania starting

simple office within a ministry, the

with 2020.

The aid scheme is multi-annual

Invest Romania brand could start to aspire to the title of Government

and will run until the end of 2020,

Agency in 2020, which would turn

with an annual budget of EUR

it into a larger structure, with a

50 million. Thirty-five percent of

larger number of specialists and a

the eligible costs for film produc-

truly global vision.

tion carried out in Romania could be covered by non-reimbursable

The business environment has been talking more and more about

financial allocations, and an ad-

the potential benefits of a country

ditional 10 percent of non-reimbursable allocations can be made

branding strategy for Romania. A country brand could help us continue to attract foreign investment.

available, provided that the films produced promote a Romanian

The future brand campaign for Romania should be carried out by

city, a region or the whole country as a tourist destination.

central authorities, and the government should take into account the needs of all those who pay taxes at the state level, through which

MORE FDI THROUGH M&A

such a campaign could be supported and financed.

Mergers and acquisitions (M&A) will constitute a large share of FDI flows in 2020 as well. “We remain optimistic about the evolution of

THE RETURN OF JAPANESE INVESTMENTS IN ROMANIA

the mergers and acquisitions market in 2020. Activity will be intense

After a period of tense commercial relations between Romania and

during this period in which the macroeconomic outlook remains

Japan, particularly in the context in which Japanese Prime Minister

solid and companies’ results maintain an upward trend,” said Ioana

Shinzo Abe’s visit to Bucharest was treated superficially by Roma-

Filipescu Stamboli, Corporate Finance Partner at Deloitte Romania.

nian authorities, things seemed to be improving at the end of last

2019 was an intense year for deal making, with the number of

year, so that there is now more optimism around the possible return

transactions reaching a 10-year high. Following a sluggish start in

of Japanese investors’ interest in our country.

certain circumstances, the market regained its pace in the second

2020 may be the year when we see a revamp of FDI from Japan entering the Romanian market. A favourable context could be en-

quarter and the total number of transactions exceeded 100.

Among the biggest deals of 2019 were the acquisition of CME

abled by better diplomatic relations, considering that president Klaus

group, which owns the biggest media company in Romania (PRO

Iohannis met with Shinzo Abe in Japan in December 2019, and that

TV), by Czech investment fund PPF, tech unicorn UiPath’s USD

the trade agreement between Japan and the European Union will

568 million financing, Eximbank takeover of Banca Romaneasca,

come into force in the spring of 2020. Generally speaking, the quality

the acquisition of betting company Superbet by investment fund

of the workforce and the information technology environment are

Blackstone, and the takeover by INGKA group of seven wind farms in

some of the elements that could attract Japanese investors to Roma-

Romania from Vestas.

www.business-review.eu Business Review | February 2020

16 COVER STORY

Venture funds and angel investors to look out for in 2020 The Romanian venture capital scene did well in the second half of 2019, with 22 investment rounds amounting to EUR 25 million. It seems like a good evolution compared with the January - July 2019 period, which saw around 25 investment rounds with about EUR 15 million invested in total, according to Activize estimations.

A

By Claudiu Vrinceanu

fter years

UiPath, the first Roma-

of constant

nian unicorn, the local

growth, 2019

tech startup ecosys-

set a new milestone

tem is experiencing

in the development

a radical transfor-

of the Romanian tech

mation. We’ve seen

startup ecosystem.

double-digit growth in

It is growing up and

indicators: the num-

attracting investors’

ber of startups, new

interest.

accelerators, capital

The funding of

raising rounds, total

Romanian startups

funding amount,”

has become more

said Florin Vasilică,

sustainable and diver-

Partner, Leader of

sified. The pipeline

Transaction Advi-

of local and interna-

sory Services at EY

tional ventures is no

Romania.

longer driven by a few small-sized compa-

2020 TRENDS

nies in e-commerce

This year, the seed in-

and marketplaces,

vestment area for tech

but is rather showing

startups is expected

a balanced mix of in-

to follow trends such

novative ideas in FinTech, Biometrics, Blockchain, Robotic Process

as: the creation of joint projects between venture capital funds and

Automation and HR-related solutions. Bucharest is the main hub in

business angels, the effect of FintechOS and TypingDNA’s suc-

Romania, driven by its strong digital workforce and diversity. Top

cess on foreign investors’ appetite for Romanian tech startups, the

funding is driven by international investors with only a few local

launch of regional investment funds, and the emergence of new

Romanian funds able to participate in Series A+ rounds. Besides

individual investors. There is potential for the number of busi-

the local funds investing in the ecosystem, we are seeing a growing

ness angel investors in Romania to grow, but the current legisla-

number of international players

tive framework is not attractive

scouting the Romanian tech mar-

enough for potential funders, so

ket for investment opportunities.

it should be reshaped in order to

Due to the lack of locally-grown

really stimulate this alternative

venture capital (VC) funds, most

type of financing for Romanian

early-stage startups are looking to

companies.

join external incubators and accelerator programs.

“Empowered by the success of

Romania has consistently been highlighted as one of Europe’s emerging hubs for tech and in-

www.business-review.eu Business Review | February 2020

COVER STORY 17

novation, a reputation the country has worked hard to attain. One of

ROCA X

the reasons behind the rise is the presence of venture capital firms.

ROCA X is an investment fund that has CITR and Banca Transilvania

The role of these investment vehicles is to provide capital, technical

among its shareholders and focuses on early-stage tech startups

resources and business advice to increase companies’ chances of

with tickets between EUR 50,000 and 500,000. After evaluating

success.

more than 150 startups in just a few months, ROCA X has already made five investments worth EUR 600,000.

INVESTORS THAT EVERY FOUNDER SHOULD BE PITCHING TO RIGHT NOW

LAUNCHUB (BULGARIA)

Venture capital firms are a group of inves-

At the regional level, LAUNCHub Ventures

tors, investment banks, and any other

was one of the first investment funds to

financial institutions that provide venture

play a major role in catalysing the Bulgar-

capital. Meanwhile, we have also seen the

ian startup ecosystem. The venture capital

rise of individual investors who finance

fund has started to look for startups and in-

Romanian startup and are called angel in-

vestments outside Bulgaria, and Romanian

vestors. Still underserved by global funding

startups and scaleups could be among its

players, the local tech startup ecosystem

targets. The Bulgarian fund is also willing

has developed with the involvement of EU-

to co-invest with other European venture

backed VC funds and the local community

vehicles and is now raising a second fund

of investors and entrepreneurs. Read on to

aimed at filling another regional invest-

learn about seven venture and growth capi-

ment gap.

tal funds and angel investors worth being analysed and primed for major investments in 2020.

SACHA DRAGIC Sacha Dragic, the founder of Superbet group, has created the D

GAPMINDER

Moonshots investment fund, so we can expect him to continue to

Undoubtedly, venture capital fund GapMinder, with a budget total

invest in tech startups and talented teams. He recently invested in

of EUR 40 million, has become a major investor for Romanian tech

Medicai, a tech startup that strives to change the way multidisci-

startups. The investments GapMinder

plinary medical teams cooperate with their

makes go up to EUR 200,000 for startups in

patients through an online platform. The

the first development stage and to over EUR

entrepreneur is also involved in Mozaik

1 million for IT companies that have already

Investments, a privately-held investment

deployed products on the market.

company created by a group of private equity specialists and entrepreneurs.

GapMinder’s most recent investments have been its entry into the shareholding of local startup Feexers, an online marketplace

SERGIU NEGUT

that connects clients with various provid-

The former manager and now dean of the

ers of personal care and home maintenance

Maastricht School of Management, Sergiu

services (electricians, plumbers, painters,

Negut is one of the best known Romanian

beauticians, etc.), and its participation in

angel investors. He obtained a USD 14 mil-

the USD 7 million Series A financing round

lion investment for FintechOS, one of the

for TypingDNA, a Romanian cybersecurity startup established in

startups he founded. He also took part in another important trans-

2016 in Oradea.

action: the sale of 75 percent of FruFru shares to Unilever.

EARLY GAME VENTURES

ANDREI PITIS

Early Game Ventures is an early-stage venture capital firm in Ro-

Andrei Pitis is another relevant business angel who aims to help

mania investing in startups that create new industries in Europe’s

entrepreneurs succeed with a business idea by investing his own

emerging markets. The fund takes a correspondingly substantial

money. He set up a company through which he’s aiming to contrib-

equity ownership position (5 to 15 percent) in its investments and

ute to increasing the number of entrepreneurs becoming million-

joins as a member of the company’s board of directors (Series A).

aires through technology startups.

At the Accelerator stage, the fund invests anywhere between EUR

As a conclusion, empowered by the successes of UiPath, Typ-

50,000 and EUR 200,000 in exchange for 5 to 15 percent of common

ingDNA, FintechOS and EU-funded VCs, the Romanian ecosystem

stock. At the Seed stage, the firm’s sweet spot is EUR 500,000 but, if

has been more active than in previous years, and the foundation

the opportunity is really promising, the fund may invest as much as

built will set the stage for the next Series A and more seed rounds

EUR 4.5 million in a single company.

for 2020.

www.business-review.eu Business Review | February 2020

18 COVER STORY

New Year’s resolutions for managers and entrepreneurs: should taxes go up or down in 2020?

When it comes to the relationship with the state, entrepreneurs and managers of Romanian companies fall into two groups: those who want a stronger government and are waiting for it to intervene and solve their problems, and those who want to be left alone. This cleavage seems stronger at the beginning of 2020 in terms of expectations regarding taxes in the new year.

By Claudiu Vrinceanu

T

he business environment’s views at the end of last year and

“THE BUSINESS ENVIRONMENT NO LONGER NEEDS TAX CUTS”

in the beginning of 2020 are divided into two categories, so

Therefore, after a period with many uncertainties and fiscal sur-

we recognise two different

prises that influenced the business

perspectives: some managers and

environment, local entrepreneurs

founders explicitly say they want

and managers of multinationals

tax reductions, while others may

prefer stability, may even agree

accept tax increases as long as the

with some tax hikes and under-

government uses them to launch

stand that the public budget will

projects and investments in educa-

be difficult for the government

tion and healthcare.

to manage in 2020. “We do not want tax breaks. A reduction in

www.business-review.eu Business Review | February 2020

COVER STORY 19

taxes will create pressure on the public budget in 2020,” said Felix

tion for developers since 2001, which has kept the Romanian IT

Patrascanu, the CEO of the largest courier company in Romania,

industry competitive, but lately, prime minister Ludovic Orban has

FAN Courier.

A part of the business environment

made several statements where he suggested that he was thinking of changing

strongly rejects measures that could

the legislation regarding tax facilities for IT

seriously affect the economic and social

employees.

balance, by generating lower revenues for

In this context, it is important to say

the state and thus leading to a precarious

that the fiscal facilities have kept the Ro-

state budget in 2020, potentially affecting

manian IT industry competitive in the race

key areas such as healthcare, education and

with other countries that offer develop-

infrastructure investments. “The business

ers zero income tax, and the IT workforce

environment no longer needs tax breaks;

deficit in the EU is very high, so eliminating

a country will not work with just tax cuts

these fiscal facilities in Romania would

and continuous spending increases and

lead to a massive exodus of specialists.

no adequate programmes to stimulate the entrepreneurial spirit,” said Florin Jianu, the president of CNPIMMR. A reduction of the general VAT from 19 to 16 percent and of the VAT for food from 9 to 5 percent, in the current fiscal-budgetary context, would further contribute to deep-

A more efficient collection of taxes is the main challenge of 2020 in the fiscal field, under a budget deficit target of 3.6 percent of GDP, above the maximum limit set for EU Member States, together with meeting the medium-term budgetary objective (MTO) to consolidate public finances, according to a PwC analysis.

ening imbalances, this time by reducing revenue, beyond spending growth in 2020, been adopted, say representatives of the Co-

TOP PRIORITIES FOR 2020: DIGITISATION AND A MORE EFFICIENT TAX COLLECTION PROCESS

alition for Romania’s Development, a body

According to Daniel Anghel, partner and

that includes the most important players in

leader of fiscal and legal services at PwC

the business environment. As 2020 seems

Romania, Romania needs to simplify its

to be a transition year to a new government

tax payment process through digitisation.

that is likely to stay in power for four years,

“The ANAF IT systems have become over-

reform measures will be postponed until

burdened and are affecting the entire pro-

2021, when we will see tax increases.

cess of tax collection, both from the budget

in line with the legislation that has already

On the other hand, there are managers of multinationals and Romanian business people who believe that the taxes that have

perspective as well as for the taxpayers, who bear a greater administrative burden.”

After more than two years with many

to be adjusted downwards are those on the workforce, claiming that

unexpected changes in taxation, what the corporate environment

Romania’s labour taxes are too high.

wants first and foremost is a period of real dialogue regarding the tax changes that may be applied in 2020 or 2021. The entrepreneurs

TAX CHANGES IN 2020

and managers who have built companies

In terms of taxation, there are two highly

on the local market, however, also have

relevant topics for the business environ-

a number of important priorities that are

ment at the beginning of 2020: the elimina-

worth an analysis by government officials.

tion of the surtax on part-time contracts

Specifically, entrepreneurs and man-

and a possible future cut to tax facilities in

agers have identified several consistent

the IT industry.

priorities at the beginning of the 2020,

The elimination of the overtaxation of

which focus on digitising and reforming

part-time contracts entered into force on

the ANAF. Business people are not expect-

January 1, 2020, a step which, according to

ing tax cuts, but they want to be allowed

the business environment, represents a re-

to focus on their business. Entrepreneurs

turn to normality after more than two years

do not complain about the tax levels, but

in which part-time workers were affected

expect results in exchange for the taxes

by fiscal measures that we could describe as

they pay and protection against unfair

disproportionate.

The IT industry has been benefiting from an income tax exemp-

competition caused by discriminatory tax measures. They want honesty and lucidity from the state.

www.business-review.eu Business Review | February 2020

20 EXPORTS

Using FDI to upgrade Romania’s exports Foreign direct investments (FDIs) have a positive impact on Romania’s export performance, according to a study published by the European Bank for Reconstruction and Development (EBRD) at the end of 2019. When policy makers are looking for effective and actionable policies aimed at upgrading quality among domestic exporters, they should consider FDI promotion and, in particular, efforts to bring foreign investors into industries which are likely to supply inputs to Romanian firms, the paper outlines.

By Claudiu Vrinceanu same industry may learn by observing what multinationals produce and export and in this way upgrade the quality of their own exports. Romania is an interesting country for studying the effect of FDI on manufacturing firms for at least three reasons, according to the EBRD study. First, manufacturing plays a relatively large role in the Romanian economy. In fact, the share of manufacturing value added in Romania’s GDP is at 30 percent, the largest in the European Union. Secondly, Romania joined the EU in 2007, and its entry was accompanied by the highest inflows of FDI in the country’s modern history.

The FDI-export linkage shows that investment promotion leads to more inflows of FDI in Romania

B

The third reason for Romania being an interesting case study is that with the GDP

ased on a panel of Romanian firms

disconnected from each other, and this is

per capita (adjusted for the purchasing power

with more than 20 employees,

something that must change in order for the

parity) at only 36 percent of the EU average,

matched with detailed customs

country to come up with long-term objec-

there is large potential for it to improve its

data, the study suggests that FDI inflows can

tives and keep them in sight,” said Ramona

manufacturing performance.

stimulate domestic firms to upgrade the qual-

Jurubita, the President of the Foreign Inves-

As investment promotion leads to higher

ity of their exports. Basically, the FDI-export

tors Council (FIC), during Business Review’s

FDI inflows, based on the conclusions of the

linkage shows that investment promotion

Foreign Investors Summit.

EBRD paper, we can argue that the infor-

leads to more inflows of FDI in Romania,

The pace of growth is similar for exports

mation on the sectors targeted by national

which in turn allows the country to upgrade

as compared to FDI evolution. Romania’s

agencies can be used to both attract new

its export basket.

exports of goods increased by 1.7 percent in

foreign investors as well as to foster the

the first ten months of last year to EUR 58.2

internationalisation of Romanian companies.

2018 amounted to EUR 81.1 billion, accord-

billion, according to the National Institute of

Consequently, the government should take

ing to data released by the National Bank

Statistics.

further marketing measures to present the

Overall, the FDI stock as of December 31,

investment climate, benefits and incentives

of Romania (BNR). Last year, the pace of growth slowed: FDI in Romania increased

FDI-EXPORT LINKAGE IN ROMANIA

available in Romania, and work to develop

by 1.1 percent year-on-year in the first ten

There are several reasons why foreign direct

investment promotion laws and programmes

months of 2019, to EUR 4.8 billion (USD 5.3

investments could contribute to the improve-

to increase its competitiveness in attracting

billion). “Foreign investors come to Romania,

ment of Romania’s export structure. First,

export-oriented investments. This approach

they stop to talk to us, but then they decide

products exported by multinationals may

to investment promotion first and foremost

to leave. We need to find ways to convince

have higher unit values due to multination-

includes the correlation of export incentive

them to stay in Romania. The private sector,

als’ superior technology and marketing

policies with those designed to attract foreign

the public sector and academia are entirely

techniques. Second, Romanian firms in the

investments.

www.business-review.eu Business Review | February 2020

22 ENERGY

Romania resumes the liberalisation of its energy market Gas and electricity prices for households, which had remained on the regulated market, will be gradually liberalised in 2020 following a troubled period generated by emergency ordinance (OUG) 114/2018. But the bad effects may prove difficult to overcome.

By Sorin Melenciuc

In 2018, Romania was still an electricity exporter

F

rom July 1, the current price cap

most stable and profitable energy producers

said. But the effect was much wider as it cre-

for gas sold to households will be

in Romania, Hidroelectrica and Nuclearelec-

ated a proxy behaviour: with regulated prices

removed, and electricity prices will be

trica, which produce the cheapest electricity

being kept artificially low, electricity produc-

in the system. At the same time, the new rule

ers asked higher prices on the free market.

fully liberalised as of January 1, 2021.

had some beneficiaries as well: the electricity

“By forcing the producers to sell electricity

DISRUPTIVE REGULATORY EFFECT

distributors on the local market.

and natural gas to households at a low price,

Prices were re-regulated last year through

“Producers were among the losers, and the

a quantity of electricity and natural gas was

OUG 114/2018, but the new government has

measure plagued them, because they were

removed from the market, and less electric-

decided to cancel the rules introduced by its

forced to sell electricity and natural gas at

ity and natural gas remained for Romanian

predecessors. OUG 114 imposed a special tax

lower prices to domestic consumers. For

industrial consumers,” the minister argued.

of 2 percent on turnover, capped the final gas

distributors, however, it was a beneficial mea-

Last year, Romania’s electricity prices hit

price at RON 68/MWh and limited electric-

sure, because lowering the producer’s price

record highs of over EUR 150/ MWh in some

ity producers’ profit margin at 5 percent

and maintaining prices for households at the

periods – and these prices have had an impact

for energy supplied to households. On the

same level increased the distributors’ profits,”

on local businesses. In the first 11 months of

electricity market, the measure mainly hit the

Economy minister Virgil Popescu recently

2019, Romanian firms significantly cut down

www.business-review.eu Business Review | February May 2016 2020

COVERENERGY STORY 23 14

their electricity consumption, possibly owing

from Russia almost doubled during the first

The European Green Deal - the Sustain-

to the higher prices on the market due to

11 months of 2019, up to 1.86 million tonnes

able Europe Investment Plan - presented in

output disturbances and rising costly imports.

of oil equivalent (toe), a record high of the

December 2019 will mobilise public invest-

Official data show that local companies cut

last few years. At the same time, local output

ment and help unlock private funds through

their consumption of electricity by 5.9 per-

declined by 2.7 percent to 7.37 million toe, a

EU financial instruments, notably InvestEU,

cent in January-November 2019, to 38.8 TWh,

trend that increased Romania’s reliance on

which would lead to at least EUR 1 trillion of

while total national consumption declined by

gas imports from Russia.

investments.

Deal poses huge challenges, but may also

rose by 11.8 percent in the same period, and

THE LONG RECOVERY OF THE ENERGY SECTOR

household electricity consumption surged by

The new liberal government has already can-

energy sector is currently dominated by large

22.5 percent mainly due to harsher weather

celled most of the measures imposed through

state-owned enterprises, which control out-

during the first months of last year and higher

OUG 114/2018, but the re-liberalisation of

put and transmission, and international util-

consumption during the summer months –

energy markets will be introduced gradually.

ity groups, which control distribution. Free

also stimulated by low prices. OUG 114 was

The government has decided that the current

prices coupled with green energy-oriented

imposed despite the fact that Romanian

price cap for gas sold to households will be

policies could boost the development of new

households still paid low prices for electric-

removed from July 1, and from January 1, 2021

businesses in the sector.

ity. According to the latest official data, local

electricity prices will be fully liberalised. But

homes paid the fifth lowest electricity bills of

the government is also trying to avoid a sig-

nated by public and large international com-

the 28 European Union member states.

nificant effect on voters’ bills in a complicated

panies, with few local entrepreneurs having

For the Romanian energy sector, the Green

0.6 percent, to 50.6 TWh. By contrast, public lighting consumption

create a lot of opportunities. The country’s

“The Romanian energy sector is still domi-

electoral year, as two

managed to develop

RELIANCE ON ENERGY IMPORTS

rounds of elections

their businesses in

But OUG 114 has had another major impact

are scheduled for

this field. Entrepre-

on Romania’s ability to cover its electricity

2020.

neurs would benefit

needs.

“I am sure that

tremendously from

the price of gas will

supportive public

exporter in the region as its Communist-built

not increase from

policies and, ulti-

power supply industry was large and diversi-

July 1. You can’t be

mately, the entire

fied. But the situation changed dramatically

100 percent certain,

local energy sector

last year due to regulatory changes coupled

but I can tell you for

would gain in the

with a lack of investment and poor manage-

sure that they have

ment. In 2018, Romania was still an electricity

no reason to increase the price of natural gas.

Nicolescu, energy and resources industry

exporter, but the exports amount was much

(...) Selling gas from the storage facilities,

leader at Deloitte Romania, told BR.

lower than it had been in previous years.

through extraction, means there will be a lot

Romania had long been an electricity

long term,” Razvan

The use of electricity for transport is set to

But in the first 11 months of last year the

of gas offered in the market which will lead

become a booming industry over the next few

country became a net importer, left to rely on

to lower prices; it is logical if you have a free

decades in the EU, including Romania, which

large imports to provide the power needed

market. If you have a tight market, the supply

could also spark a generation of new startups

by its businesses and households. Accord-

and demand rules no longer function,” minis-

in this field. According to a recent forecast,

ing to official data, Romania imported 4.4

ter Virgil Popescu estimates. But the switch in

electricity consumption in the EU’s transport

billion kWh over January-November 2019

energy policy could bring some good news in

sector will grow by around 700 percent over

and exported only 3.1 billion kWh, taking

the future. Returning to free prices and a free

2017-2040. Experts say that Romania tradi-

the country’s electricity balance into the red.

energy market could boost investment in the

tionally has its strengths in the energy sector,

Electricity exports dropped by 39.5 percent in

sector as Romania still has energy resources

not only by being the richest in the region in

the first 11 months of 2019, while imports rose

to exploit and a large energy industry.

oil and gas, but also taking into account its hydroelectric output and the fact that new re-

by 82.5 percent.

This reliance on imports was due to a

newable energy projects have emerged lately,

slump in power output, which saw a 7.9 per-

EU’S GREEN DEAL: CHALLENGES AND OPPORTUNITIES

cent decline compared to January-November

This price liberalisation in Romania comes at

2018, associated with a slight decline in

a moment when the European Union has set

than for those in some other CEE countries

consumption, of 0.6 percent, during the same

a target to become the world’s first climate-

to tap into this potential by partnering with

period. But the situation remains tense as

neutral bloc by 2050. This requires significant

larger energy companies or simply offering

Romania continues to rely on imports to cover

investment from both the EU and the national

their technology solutions to those compa-

its electricity needs. In the gas sector, imports

authorities, as well as the private sector.

nies, according to experts.

in both wind and solar energy.

It is therefore easier for Romanian startups

www.business-review.eu Business Review | February 2020

24 ENTREPRENEURSHIP

Hot industries for local startup investors in 2020 Investment activity in Romanian startups will remain strong in 2020, with tech entrepreneurs set to remain in the spotlight, while at the European level venture capital deals exceeded over EUR 25 billion in the first nine months of 2019.

By Ovidiu Posirca investors. “2020 will be another huge year for the development of the startup scene.

The chances of witnessing the rise of new unicorns are quite high when looking at the advancement of FintechOS or TypingDNA, two companies which we’ve also supported significantly,” Cristian Dascalu, partner at Gapminder and Techcelerator co-founder, told BR. The local entrepreneurial ecosystem has developed significantly in less than a decade. Just back in 2013, there was a “stigma” around the term entrepreneur, says Andreea Moldoveanu, executive manager of Innovation Labs, an organisation which was founded that year. She says this perception was strong among young people because they were not aware of what an entrepreneur actually did and how this could be turned into a real profession.

“Back in those days funding was harder to Business sectors that will remain attractive for investments this year are retail, IT/technology and services

A

obtain and people were less open to experiencing failure, both as founders as well as investors. Over the last few years the com-

round EUR 1 billion was invested in

infrastructure. The funding round was led

munity has learned from each individual’s

startups across Central and Eastern

by Digital East Fund with the participation of

experience and has grown in knowledge as

Europe (CEE) in 2019, according to a

current investors GapMinder and Launchub

well as in confidence and openness towards

report by How to Web. Locally, several fund-

Ventures. Elsewhere, TypingDNA, a Roma-

taking new opportunities and crossing bor-

ing deals in the millions and tens of millions

nian behavioral-biometrics startup, raised a

ders,” Moldoveanu told BR.

of euros were closed.

USD 7 million Series A round led by Gradient

“The Romanian startup ecosystem has

Ventures, Google’s AI-focused venture fund,

grown a lot in the past couple of years, which

with the participation of GapMinder Ventures

HOT INDUSTRIES FOR INVESTMENTS IN 2020

is a sign of maturity and stability. Also, more

and Techstars Ventures, as well as other prior

The most exciting sector for startups this

venture funds have been developed and angels are always looking to meet young entrepreneurs with exciting startup ideas,” Andrei Avadanei, the CEO of Bit Sentinel, a cyber security company, told BR. Two significant investment deals were carried out on the market at the end of 2019. Local tech startup FintechOS raised USD 14 million to develop its platform that helps financial companies to upgrade their

www.business-review.eu Business Review | February May 2016 2020

ENTREPRENEURSHIP COVER STORY 14 25

Andrei Avadanei, Bit Sentinel

Cristian Dascalu, GapMinder

year will be Artificial Intelligence as Romania

sible deals in Romania following the meteoric

billion in 2019, exceeding the previous year’s

follows the global trend, suggested Dascalu

rise of UiPath, which reached a valuation of

result by almost EUR 5 billion, according to a

of Gapminder. Financial technology, eHealth

USD 7 billion last spring.

report by PitchBook. Last year’s performance

and cybersecurity will also record strong growth.

Avadanei of Bit Sentinel also sees funding

“The replication of the UiPath model,

Ionut Sas, PwC Romania

was driven by Klarna, Europe’s highest

which became the first unicorn with Roma-

valued VC-backed company, which raised its

nian roots, is difficult, and I think it first de-

biggest round of EUR 411.2 million.

potential for startups doing infosec, machine

pends on how Romanian start-ups will man-

learning, AI and Big Data. He adds that cyber-

age to bring innovation and become visible to

billion-euro valuations remain in the ecosys-

security and fintechs hold a leading spot on

attract investors’ interest, as well as how they

tem, deals of this magnitude will continue to

the local entrepreneurial market.

will be able to scale their sales and footprint

be the norm,” the report says. Across Europe,

fast to a global level. They have to work hard

the average VC funding deal for startups went

Business sectors that will remain attractive for investments this year are retail, IT/technology and services, said

and have a certain share of luck, coupled with inspiration and a

Ionut Sas, partner at profes-

great scaling team and strong

sional services firm PwC Ro-

business partners,” Sas told

“We think that while unicorns with multi-

close to EUR 2.5 million.

Meanwhile, investors in Europe and the US are working with founders to build a profitable path for startups.

mania. The AI field is set to

BR. He predicts that the IT

“Investors are willing to pay for a bit more

record a massive increase in

sector is likely to generate

certainty on profitability and a bit more real-

investments in the follow-

the next unicorn startup.

ity around growth,” said Evan Damast, global

ing years, with AI experts being in high demand across the world. Spending on AI systems will reach USD 97.9 billion by 2023, compared to USD 37.5 billion in 2019, according to a report by International Data Corporation (IDC). The global industry’s annual growth rate between 2018 and 2023 will stand at 28.4 percent.

“We expect Romania to follow this growth trend even at a higher rate,” says the Gapminder partner.

The big question on investors’ and founders’ minds is which industry will generate the next unicorn, meaning a startup that reaches a valuation of at least USD 1 bil-

In the medium term, we might see more investments in startups, especially in the

head of equity and fixed-income syndicate at Morgan Stanley, according to the Wall Street Journal. As some of the unicorn startups went

tech field, carried out by multina-

public in the US in 2019, results have been

tional and mature entrepreneurial com-

mixed. Ride-sharing players Uber and Lyft

panies, predicts the PwC Romania partner.

“The presumption of soon having a new Romanian unicorn sits on very healthy ground, as we, as a community, have built a ‘playground’ where all the relevant stakeholders (founders, mentors, angel

are among the nine companies that raised over USD 1 billion from going public and their shares are trading more than 30 percent below their initial public offering (IPO) prices.

By contrast, companies that recorded small losses or were slightly profitable saw an increase in their share prices following their

investors, venture capital)

IPOs. For instance, shares of Zoom Video

are coming together and

Communications, a videoconferencing plat-

supporting each other to

form provider, saw an 80 percent surge in its

create strong businesses

shares.

out of enthusiastic ideas,” adds Moldoveanu of Innovation Labs.

lion. UiPath, the robot process automa-

For 2020, all eyes will be on Airbnb, which could go public although it hasn’t turned a profit yet. Its progress on the stock exchange could also be a litmus test for investors’

tion (RPA) pioneer with Romanian founders,

EUROPE VC ACTIVITY REMAINS STRONG

expectations, which could also be reflected

was the first to reach this milestone.

Deal-making on the European venture capital

to some extent in the further development of

market was set to reach north of EUR 30

the local entrepreneurial sector.

Sas says that investors are looking at pos-

www.business-review.eu Business Review | February 2020

26 ENTREPRENEURSHIP

Startups competing for talent in tight labour market With an unemployment rate standing at less than 2 percent in Romania’s largest cities, entrepreneurs are facing major challenges in recruiting the right employees. While large companies can provide a generous benefit package and comfortable offices, what startups are bringing to the table are flexible work schemes, fast-paced environments and hopes that some of the initial employees will become rich if they stick around long enough for the company to go big.

By Ovidiu Posirca

It is very difficult for startups to attract young professionals or seniors

T

he labour market in Bucharest has

dize the future of their firm. “For startups,

not match,” Dan Puica, the CEO of jobs portal

overheated, with the unemployment

competing with large employers in attracting

BestJobs, told BR.

rate having dropped to 1.29 percent

talents is definitely challenging. Large com-

as of November 2019, according to data from

panies generally have the recruiting power,

the Labour Ministry. The Romanian capital

employee benefits, employer branding strate-

FROM STARTUP TO CORPORATION OR THE OTHER WAY AROUND

generates 25 percent of the country’s annual

gies and employee motivation initiatives to

Although startups and large employers are

GDP and hosts the headquarters of some of

make themselves very attractive for skilled

targeting roughly the same talent pool, the

the largest entrepreneurial companies and

workers. But what startups lack in terms of

real differentiator might be the capacity of

multinationals.

size and value proposition they make up

skilled candidates to show how they can

through flexibility and a way of working that

make a difference in the company, regardless

startups, there is little room for mistakes as

is better adapted to the new generations of

of its size, says the head of BestJobs.

a string of recruitment errors could jeopar-

employees that larger companies simply can-

For founders looking to grow their

“Because today’s talents want to align

www.business-review.eu Business Review | February May 2016 2020

ENTREPRENEURSHIP COVER STORY 14 27

themselves to companies with strong cul-

aligned with their beliefs, something which

personal accomplishment of being part of a

tures and values that resemble their own,”

they are more likely to obtain in a startup,”

successful and healthy journey,” says Dascalu

says Puica.

says the Gapminder partner.

of Gapminder.

Young employees might work at a startup

Some say that the “know-who” and the

Large companies are trying to mirror the

and move to a corporation, while experi-

“know-how” in an industry are crucial for

workflows of startups in a bid to harness

enced specialists that have worked in large

employees who want to start their own busi-

innovative ideas. In addition, some corpora-

ness.

“I always say that in order to convince talents

employees’ creativity and leadership skills,

to be willing to

and help them grow within the organisation.

listen and look

As part of the same community, startups and

beyond the

corporations can have a mutual understand-

job to see the

ing on what motivates that community:

bigger picture

the power that brings people together in a

and be active

startup, fired up by the desire to combine

in a company

different skills to solve a problem. To see a

Avadanei, CEO of cybersecurity company Bit

tern, and each person’s personal and profes-

Sentinel, told BR. In the tech field, the competition for

“For many young people, the startup is

skilled workers is particularly fierce. The high

the way to learn what you need to know in

demand for talent has also driven an increase

order to be able to work in a corporation.

of the labour market. Some 160,000 people

Startups provide young people with knowl-

were employed in the ICT field in 2015, and

edge, flexibility and the chance to develop

by 2018 it had soared to over 190,000, ac-

ideas in their areas of interest. But they don’t

cording to Eurostat, the statistics office of the

necessarily provide structure, and in many

European Union. Companies in the technol-

cases they lack financial power. At the same

ogy field are continuing their recruitment

time, the lack of structure is also a positive

efforts, which in turn have led to an increase

factor for those who are self-motivated and

in wages. By November 2019, employees in

more interested in making their mark on

the technology sector had a net average wage

the world,” says Cristian Dascalu, partner at

of RON 7,610 (close to EUR 1,600) per month,

Gapminder and Techcelerator co-founder.

making them the best-paid in the entire

Gapminder is a venture capital fund that has

economy, according to the National Institute

made early stage investments in dozens of

of Statistics.

Meanwhile, startups that can speak more about their projects and the work environ-

difficult” for startups to attract young profes-

ment could become more attractive for new

sionals or seniors. This doesn’t mean that

employees.

entrepreneurs can’t fill the ranks in their startups.

“On the other hand, seniors may be at-

“Furthermore, corporations with an

team, they need

their own businesses. There is no clear pat-

Nonetheless, Dascalu says that it is “very

ideas, just like conventional VC players. intrapreneurial culture can benefit from their

where they can make a difference,” Marius

Romanian startups.

funds and making risky investments in new

to join your

companies for decades could choose to open

sional expectations could play decisive roles.

tions are operating their own venture capital

“And CEOs should not forget to present their ideas and projects to people. For example, in the tech sector, where the

tracted by startups especially due to these

salary is no longer a distinguishing feature,

reasons: flexibility and the chance to do

people leave or choose companies due to the

need and fill it, which is, ultimately, the heart

things in a faster and more ingenious way

projects in which they are involved or to the

of the matter in entrepreneurship,” Andreea

than they could in the corporation where

programming languages they have to learn

Moldoveanu, executive manager of Innova-

they previously worked. After 10-15-20 years

or use. We are in an era when people are

tion Labs, told BR.

in corporations, senior employees want to

increasingly seeking learning opportunities

still have a career but, at the same time, they

rather than high salaries. Because learn-

need the perception of ‘freedom’. They want

ing new things can lead to a better career

STARTUPS WINNING THE RECRUITMENT CHALLENGE

to have a bigger sense in life and be better

and a higher income, and ultimately, to the

Local food delivery platform Petisante

www.business-review.eu Business Review | February 2020

28 ENTREPRENEURSHIP

launched at the end of 2019, following an

keep employees interested,” Toanchina told

so periodically we upgrade the benefits pack-

initial investment of EUR 500,000. The

BR. He says that removing caps on earnings is

age for all employees,” the manager told BR.

company has 15 employees working in its dis-

one way of having efficient employees.

Elsewhere, ContentSpeed, the provider of an eCommerce platform for online stores, is

tribution, cooking, marketing, and call center

MOTIVATING EMPLOYEES

looking to hire more consultants this year to

Vitacom Electronics has around 100 employ-

implement the company’s technical solution

Bucharest, one of the recruitment criteria

ees and carries out yearly surveys to gauge

for more customers. Currently, the company

was proximity to the workplace. So we

employee satisfaction and to design its pro-

has around 30 employees.

looked for people living nearby, because they

motion strategy. Avi-

have a stronger desire to work with us, but

va Vita, the Roma-

stantly recruiting

we are glad if a person living further away

nian company’s PR &

and we have our

chooses to work with us,” Mihai Irimia, the

Marketing manager,

own HR specialist.

founder of Petisante, told BR. Until now,

says that the flexible

We are now moving

the company has used online recruitment

work schedules and

to a bigger HQ with

platforms to post jobs, but Irimia says that he

the various internal

all kinds of facili-

might hire a person through a recommenda-

events designed to

ties that are popular

tion as well.

consolidate teams

among the young.

departments.

“Given that our location is at the edge of

“We are con-

are things that

In addition, we

working with in the kitchen and I am glad

motivate the staff.

have a core group of

that I could find specialists in Romania, with-

Furthermore, the

managers and senior

out needing to recruit people from abroad,”

firm is also providing other perks, such as

programmers who have been with us for

says the founder.

private medical packages and private pen-

years,” Dragos Vilceanu, business develop-

Elsewhere, Cristian Toanchina, the

sion schemes. The company has been able to

ment manager at ContentSpeed, told BR. The

co-founder of on-demand laundry service

maintain a stable headcount in the past year.

company is investing in training programmes

Drop&Go, says the startup launched with

“We also try each year to keep the level of

and new technologies to keep employees

five employees. “Our plan is to have a salary

pay in line with the evolution in the areas in

motivated and maintain a competitive edge

system that is based on performance, so as to

which we operate, through various studies,

on the market.

“I have already formed the team I am

www.business-review.eu Business Review | February 2020

30 SOFTWARE

Looking for a new job opportunity?

Software industry has you covered The software industry ranks first in Romania in terms of top job opportunities, leaving behind sectors like sales and banking. So if you’re young and you want to choose a career path, software development would be your best bet.

By Aurel Constantin Oracle or IBM. According to a 2019 analysis

by KeysFin, the total turnover of companies controlled by US investors was around EUR 1.4 billion in 2017, and the IT industry represented about 30 percent of the total.

But Romania also has some local companies that have made it to the international market, like UiPath, BitDefender or SoftVision.

In terms of local activity, the cities with the most IT employees are Bucharest, Iasi, and Cluj. This ranking reflects the locations chosen by the American giants: Microsoft in Bucharest or Amazon in Iasi. The increase in the number of IT employees in Iasi is also due to the fact that the schools in the city produce between 2,500 and 3,000 computer science specialists every year.

IT SALARIES ARE STABLE Today, Romania hosts many international IT giants, like Microsoft, Amazon, Adobe, Oracle or IBM

Romania is one of the most active IT hubs in Europe, with a rapid growth rate. This has led to the emergence of a major shortage of

F

a career change, the IT field might be

growth - in 2019, it exceeded the EUR 5 bil-

career opportunities, where the employee has

what you are looking for. The growth

lion threshold (five times its 2003 value and

the upper-hand over their employer.

the industry has experienced in recent years

double compared to 2013). Its growth rate hit

makes it very welcoming to those who want

14.3 percent in 2019 compared to 2018, and

nia are predominantly earned in this industry;

to start over in a new job. There are several

its contribution to Romania’s GDP reached 6

the net nominal average income increases

programmes trying to solve the IT industry’s

percent (versus 0.5 percent in 2003).

with every month that passes. While in Feb-

urthermore, in case you’re thinking of

workforce shortage, including Codecool, a school for programmers.

specialists on the local market. This has creRomania’s IT industry has seen enormous

Today, Romania hosts many international IT giants, like Microsoft, Amazon, Adobe,

ated new tempting, varied and highly secure

In this context, the highest wages in Roma-

ruary 2019, the average salary in IT was RON 6,683, by May 2019 it had gone up to RON

www.business-review.eu Business Review | February May 2016 2020

COVER SOFTWARE STORY 31 14

6,946, according to the National Institute of

current state of the IT employment market,

The good news is that IT has become very ac-

Statistics.

Codecool IT school partnered up with recruit-

cessible. Today, you can learn programming

ment agency Brainspotting to interview 47 IT

from scratch even if you don’t have a college

for people who are familiar with the most

companies and identify the main challenges

degree. It is enough to be passionate, to want

popular programming languages: full-stack,

they face in the recruitment process.

to learn to code and to spend enough time

Companies are constantly on the lookout

Front-End, Java or Python developers, as well as IT and Big Data security special-

First, the academic environment does not provide enough IT graduates: the universities’ coverage is well

ists or software engineers.

below demand: the 5 poly-

For a junior full-stack

technic universities, 59

developer, the salary

state universities and

starts from RON 3,500,

on it. Encouraging professional reconversion through various strategies seems to be a solution to the deficit. This is why IT schools are working in partnership with IT companies to train professionals in the field.

People with different professional experience

but most salaries are

174 private universi-

(from construction or telecommunications

between RON 3,770

ties offering techni-

engineers to journalists or political science

and 7,000, a range

cal courses produce

graduates) enhance the stability of a team, as

also confirmed by

approximately 9,500

already confirmed by some employers who

Brainspotting reports

graduates annu-

took part in the study. “There are hundreds

ally, compared to the

in recent years. A mid-

market’s need of over

level full-stack devel-

15,000. Second, many

oper can reach a paycheck

Romanians are still choosing

of RON 9,910 – 13,700, while

to work abroad: according to the

a senior takes home over RON 14,630.

study’s estimates, 37,031 IT specialists

of companies around the world already doing this, as well as private programming schools that can provide support. Codecool has helped Vodafone, ThyssenKrupp, Morgan Stanley, Emarsys, CapGemini, and Evosoft find the right employees. Vocation is a very

have left Romania to work abroad. The num-

important motivation in the IT field, and it is

developers are similar, between EUR 650

ber is large enough to cover almost 80 percent

worth paying attention to those who want a

and 1,300 for a junior with less than 2 years’

of the talent shortage expected for the next

career change,” says Claudia Tamasi, Country

experience (average wage is EUR 870). For a

three years.

Manager at Codecool Romania.

The incomes of front-end and back-end

mid-level developer, with 2-4 years of experi-

Last, the IT specialists we have should im-

Choosing a good IT school can help you

ence, the wage is between EUR 1,250 and 2,580 (average salary is EUR 1,720), while for a senior developer, with over 4 years of experience, the paycheck can be between EUR 1,800 and 4,300 (average of EUR 2,260).

Java programmers take home a monthly average wage of RON 7,072, according to the Paylab salary comparison tool, while the average monthly net salary for a PHP programmer is RON 5,546. The average wage for a Python programmer is RON 6,470, and a C ++ programmer can earn a net monthly of RON 6,973.

prove their technical skills: the study showed

learn programming and get an entry-level job

that 63 percent of companies are dealing with

in less than a year. Bear in mind that the spe-

DEMAND FOR DEVELOPERS IS GREATER THAN EVER

low talent quality - it seems that Romanian IT

cialists say that the one-year achievement is

specialists do not yet have the level of experi-

only possible if you are truly committed and

The upper-hand the employees have over

ence required to take on complex projects.

constantly attend courses, for at least 6 hours a day - just like going to work. The good part

their employers is due to the fact that the IT industry is lacking more than 15,400 professionals per year. To better diagnose the

LEARN PROGRAMMING FROM SCRATCH IN ONE YEAR

is that you may find a job before you even finish the course.

www.business-review.eu Business Review | February 2020

32 FINTECH

In search of the next unicorn: digital services for the financial industry Teodor Blidarus and Sergiu Negut founded startup FintechOS in 2017. Two years and three months later, they’ve managed to close a USD 14 million financing round, which raises the question: will FintechOS be the next Romanian unicorn?

By Aurel Constantin

T

he Series A financing round was led

by EarlyBird’s Digital East Fund and OTP Ventures. Previous investors

GapMinder and Launchub Ventures also participated in the round. The previous round took place in May 2019, and it was worth EUR 1.1 million. GapMinder, Launchub Ventures, Gecad Ventures and other private investors took part.

FintechOS is making history in the digitalization of the financial industry. It has developed a platform that works like an operating system and allows banks, insurance companies or any other financial institutions to rapidly create digital apps and services.

The idea for the product belonged to Teodor Blidarus. ”He had this vision that all the clients want the same thing at the same time.

A certain way of structuring data, a certain type of process,” said Sergiu Negut, the cofounder of FintechOS, in a discussion with Business Review. Blidarus knew that companies in the financial industry would have to create new services and products for their customers, the same way that fintechs like Revolut did, and were hugely successful. He wanted a technology that would allow these companies to build the products exactly the way they wanted, but in a much shorter time than it would take if they were building them independently. ”At some point it became clear to Teodor that this technology had to be done from scratch and had to be a world class product built by a world class team,” says Negut. This is where his role came into play: making sure that the business plan was carried out and allowing Teodor Blidarus to build the platform.

The company started with an initial investment of about EUR 500,000, of which EUR 200,000 came from Sergiu Negut.

www.business-review.eu Business Review | February May 2016 2020

COVER FINTECH STORY 33 14

the seed stage you have to prove that you

has to go and pitch to every single investor to

the company’s growth occurring with huge

have recurring revenues, that you can sell to

convince them that the investment is viable.

steps, and not organically. Considering that

some clients, and that the business model

”It is a lot of work. At the end of the day we

they had a revolutionary product with a des-

works,” Negut explains.

talked to over 60 funds, then over 10 funds

Ever since the beginning, they envisioned

ignated market, they decided not to go step-

Afterwards, the company must show that

wanted to continue, and from that pool we

by-step and invest 20 percent of the profit, as

there is an alignment between its product

were able to choose the best suited investors

it is traditionally done, but by investing 200

and the clients, a so-called product market

for our business,” adds Negut, who carried

percent of the revenues. Which is possible

fit. Series A round investors also need to see

out most of the discussions by himself, while Blidarus focused on the product.

THE DIGITAL CHANGE The FintechOS technology allows banks and traditional insurance companies to keep up with their customers’ ever-changing expectations and also with the speed, agility, and flexibility of fintechs, companies whose business models are based on innovative technologies. when you get investment funds to finance your idea. ”This way, you have the money to hire the best people on the market

good leadership in the company, with the ability to form a team around it. These are the steps that need to be taken at

With the help of FintechOS technology and expertise, banks and insurance companies can launch hyper-personalized, fully digital products and services based on com-

and invest in the product,

the global level. When the

plex data sources, at unprecedented speed

which is a very difficult job

company is from Eastern

- in weeks instead of months or even years.

Europe, it needs to do

The implementation of FintechOS technol-

even more to convince

ogy can be done as Software-as-a-Service:

for a startup,” Negut says.

They made sure from the start that the product would be attractive for venture capital funds: a model that is not very common in Romania, since venture capital is scarce.

Usually, any startup begins with the 3F money (family, friends, fools), and after a few months they look for an accelerator, a business angel or a combination of those two in order to get their pre-seed money. “At

venture funds.

A Romanian startup needs to demonstrate that it can go global before entering a Series A round.

This is why FintechOS went abroad in search

the company helps clients in the process of migrating to the cloud, but also locally (onpremise), and the platform easily integrates with existing tech infrastructure.

FintechOS offers its customers the oppor-

of clients. With previous investments,

tunity to use data from over 150 integrated

they’ve managed to open offices in cities

sources (from social networks, contextual

like London, Vienna, Copenhagen, Amsterdam or Warsaw and have clients in countries like the UK and Germany. They

information, cloud systems and enterprise solutions), as well as 20 automated financial processes (based on artificial intelligence, such as KYC - Know Your Customer),

this stage, the startup must

needed an international

Customer 360, prices, risk analysis, etc.).

have a minimum viable

footprint to prove that

FintechOS also offers a marketplace with

product,” Negut notes. In

they were able to maintain

over 50 open source applications created to

its first months, FintechOS

the growth.

facilitate the use of technology in customer

managed to get a total of around EUR 1 million (including the investment made by the founders) in pre-seed money.

Another very important step in convincing investors is showing multiple hundred percent growth every year. ”And after

onboarding processes, credit, savings, insurance or pensions. Furthermore, strategic partnerships with large companies such as Microsoft, EY, Deloitte, Publicis Sapient and

the growth in 2018, we will close 2019 with

CapGemini allow the company’s technology

2018, FintechOS got a seed finance round

close to 500 percent growth,” says Negut. Af-

to be introduced and adopted more quickly

from GapMinder, worth EUR 0.6 million. “At

ter all the boxes are ticked, the company still

on many markets.

One year after starting out, in November

www.business-review.eu Business Review | February 2020

34 FINTECH

”We are helping companies in the finan-

more mature adult generation, who may

rope, most likely in South-East Asia and the

cial industry digitize their services, in order

have a mortgage, a credit line, a pension

US. “We also need commercial development,

to be as fast and versatile as fintechs. The

fund and so on, will ask for more services to

in branding and market studies – all the

companies are building the new products

suit their needs. Banks’ most potent clients

things you need when entering a new mar-

on their own, but everything is ten times

want digital products and the banks will

ket,” says Negut. There are differences in the

faster when they’re using our platform. They

have to provide these services. “The demand

ways in which FintechOS finds clients in East-

don’t have to write the code all over again to

is not fully there yet, but we are already of-

ern Europe versus the more mature markets.

develop the product,” says Negut.

fering things that respond to it. What we’re

In our region, the clients who know about the

seeing today is an amazingly rapid adoption

company usually ask for its services, while

and the success of fintechs like Revolut or

of digital products after they are released.

in the UK or other western countries the

Monese are based on the ways in which they

So the question is not whether digitaliza-

company must reach out to clients through

offer services to people. And these services

tion will occur, but how fast it will happen,”

conferences or meetings in order to present

do nothing more than allow you to pay for

Negut argues.

the services they offer. “Last but not least,

Last fall, they launched FintechOS 20, a completely new platform that provides a new way of structuring data. At the same time, they launched the app store, where companies can find ready-made apps.

CUSTOMER-DRIVEN CHANGE The success of FintechOS’s platform stems from the fact that banks and other financial organisations are being forced to develop new ways of interacting with their customers. The birth

goods and transfer money. But customers

What we shall see in the future is “robust

we want to have a business that is convincing

see the technology and they ask for it, so

personalisation,” which means that there will

enough to be able to raise a Series B in the

the banks must be able to at least replicate

be products and services made for individu-

next 12 months that will be much larger than

those services. ”It’s the customers that drive

als and their needs. And not just in banking,

the funding we just got,” says Negut. Last

the technology,” says Negut. And it is not

but in insurance and investment as well.

year, FintechOS recorded revenues of about EUR 5 million, and this year it should triple

something that can be done over time, from scratch; it needs to be done fast. ”Moreover,

THE FINANCING ROUND The money the company received at the

that number in order to meet investors’ requirements.

The company was valued

end of 2019 will

at around USD 50 million

go into research

after its latest financing

and develop-

round. If it manages to

ment and

triple its revenues, the

enhancing its

valuation will go up to

international

USD 150-200 million by

footprint. First, it will expand its presence in Europe. Today, Finte-

the end of the year. This means that the unicorn status is not that far away, even if the founders are not thinking about that. What’s more

digital products have a limited lifespan, so

chOS has around 90 employees in

companies will need the tools to quickly de-

Bucharest, where the research and develop-

important is developing the product to the

velop the next generation,” Negut explains.

ment department is based, and another 60

point where many financial institutions

in Europe, most of them in London. The

around the world are using the platform.

digital products that need to be developed.

European team will grow in order to keep up

“Success is being at the right place, with the

Demand will come from customers, but not

the sales.

right thing, at the right time. I hope we’ve

The future holds a great deal of new

the younger ones like Generation Z. The

Another step is expanding outside Eu-

covered all that,” Sergiu Negut concludes.

www.business-review.eu Business Review | February May 2016 2020

COVER FITNESS STORY 35 14

Bucharest fitness market: competitive and fragmented Studies show that 50 percent of the people who sign up at a regular fitness gym, where they work out by themselves, give up within the first three months. Moreover, 20 percent of them never even use the subscription. Romania ranks second in Europe when it comes to sedentarism and third in terms of the share of overweight population. And the sedentary lifestyle can also be observed among business people.

By Romanita Oprea some of the reasons why many companies choose to invest in physical activity and may even have their own gyms for employees.

There are also companies asking the representatives of their favourite fitness centres to manage those in-house gyms or to organise motivational team buildings.

Bodyshape Transformation Centre is located in the Aviatiei area of Bucharest. In 2018, hundreds of people reached their physical goals and shed over 1.5 tonnes of fat, through 45-minute workouts done three times a week.

The centre is also known for its 6-Week Challenge, a programme built on three pillars: guided training, personalised nutrition and motivational coaching.

But how competitive is the Romanian fitness market? In Irina Alionte’s opinion, it’s still in its infancy compared to those in more Revvolution - a place where people could get everything they need in order to attain their fitness objective

O

developed countries. Surely, there are fitness centres in every major city of the country, but the market itself is quite under-developed in general.

nly 15 percent of those who exercise

able to get involved in the well-being of the

by themselves at the gym succeed

business and be more productive. There are

in reaching their objectives, while

numerous benefits to exercise (gets us in

our population has a gym membership, as

the rest need the support of a trainer or group

shape, prevents the brain from aging, helps

compared to the 11 percent European aver-

classes, according to information shared with

the heart work better, gives us cleaner skin,

age, which suggests that there is still plenty

us by Bodyshape Transformation Centre

higher resistance to stress, better sleep, as

of room for growth and a lot of potential for

representatives. Irina Alionte, the founder

well as a higher desire to enjoy life, be hap-

providers to get more people to be active. The

of Bodyshape Transformation Centre, also

pier, more productive, and more motivated).

market potential and Romanians’ increasingly

explained why entrepreneurs can be more

Ultimately, you will live a longer and better

sedentary lifestyle can be attractive for those

successful if they engage in more physical

life,” explains Irina Alionte.

who are able to seize the business opportu-

activity, and why employees are healthier and more efficient when they exercise more often.

At the same time, there are also five

“Reports state that only 4 percent of

nity, so it’s no wonder that the number of

positive effects exercising can have on one’s

fitness clubs increases by approximately 10

business: higher ROI (return of investment)

percent annually, with new gyms opening up

not to get sick in order to be able to manage

and VOI (value of investment), fewer medi-

to the public,” said the Bodyshape representa-

your business full time. At the same time,

cal leave days, increased employee loyalty

tive. On the other hand, she points out, the

it’s very important that your employees are

towards the company, and stronger social

landscape is quite different when it comes to

healthy, happy and thankful in order to be

cohesion in teams or departments. These are

the fitness market in Bucharest, which has

“As an entrepreneur, it is really important

www.business-review.eu Business Review | February 2020

36 FITNESS

Valentin Vasile, owner and founder Revvolution

become increasingly competitive recently.

Irina Alionte, the founder of Bodyshape Transformation Centre

Irina Alionte adds that there are many

is science-based and has been confirmed by

people who are starting to pursue profes-

the results achieved by thousands of clients.

becoming more interested in maintaining a

sional reconversion to become fitness trainers

The first version of the programme was cre-

healthy lifestyle, eating well and working out.

or nutritionists and offer their services to

ated by Valentin Vasile in 2012 and it offered

They have started to understand the impor-

potential customers. But, in her opinion,

clients a 360-degree approach to nutrition

tance of a balanced lifestyle and the benefits

experience and tradition are very important

and exercise.

of nutrition and exercise in all aspects of their

when it comes to providing such services to

“Fortunately, Romanian people are

“Because we operate on a competitive

life. Of course, more interest from potential

the population. The more studying one does,

market, we try to bring the best to our cus-

customers leads to an increase in the number

the more prepared they will be to develop

tomers each year. In 2016 we moved to a big-

of gyms and fitness programmes – on one side

a personalised approach that will help their

ger space in central Bucharest, offering more

we have gym chains that are opening more

clients achieve results with no risks.

than 800 sqm of workout studios, changing

venues and on the other, we see new fitness

The Romanian fitness market is domi-

rooms and coaching spaces. We’ve gradually

programmes trying to gain a prominent place

nated by one big player which launched in

added new components to our programme

on the fitness market,” said Valentin Vasile,

2000 (World Class), with a strong presence

and now our customers can benefit from

owner and founder of Revvolution.

of 33 centres around the country and 60,000

the opinions of three nutritionists and eight

members, as well as several smaller, but well-

fitness trainers, a kinesiotherapist and an

positioned players.

endocrinologist. We also organise numerous

With more than 20 years of experience in the fitness industry, Valentin Vasile is a certified fitness trainer and sports nutri-

In this landscape, Bodyshape Transforma-

workshops for our customers – our purpose is

tion specialist who has helped thousands of

tion Centre was born 5 years ago, opening up

not only to help them lose weight, but to try

people get in shape and develop a healthy

a unique niche – the boutique fitness centre.

to teach them how to have a healthy lifestyle

lifestyle. He developed the Revvolution

During this time, Bodyshape has helped

and avoid potential health risks,” Valentin

programme more than 8 years ago, as a place

over 2,000 people to burn nearly 5 tonnes of

Vasile explains.

where people could get everything they

fat and lose 30,000 centimeters from their

needed in order to attain their fitness objec-

waistlines.

tives with a friendly approach. The idea came

Revvolution is a premium fitness pro-

So far, Revvolution’s biggest challenge has been educating the public that weight loss needs a healthy approach and it should not be

from his desire for more people to have access

gramme that offers integrated services for

about fad diets that can do more harm than

to a scientific approach to a healthy lifestyle,

customers – its members have access to work-

good. The company tries to publish a lot of

fitness and weight loss management, with the

outs, nutrition services, coaching and fitness,

quality content on its blog and social media

firm belief that healthy eating, exercise and

kinesitherapy or nutrition workshops, so

profiles and explain to people what healthy

permanent support and motivation are all

they can achieve a healthy lifestyle. Accord-

lifestyles, healthy workouts and healthy nu-

essential.

ing to its representatives, everything they do

trition are and why its trainers rely so much

www.business-review.eu Business Review | February May 2016 2020

on this 360-degree approach.

COVER FITNESS STORY 37 14

a gym membership in recent years and most

and we closed 2019 with EUR 480,000 in turn-

of them lived in big cities. We hope that the

over, which means our business has grown by

also adds that they have always been keen on

numbers grow, since it is easier to prevent

approximately 60 percent! In 2019 we man-

keeping the Bodyshapers community very

than to treat, and working out and eating

aged to grow our membership base at our flag-

closely connected. The community comprises

healthy can keep you safe from a lot of medi-

ship centre, but another part of the revenue

very vibrant, authentic, positive and open-

cal issues. It is a good thing that the govern-

growth is the fact that we have expanded

minded people who have decided to make the

ment understood the importance of this mar-

by opening a second centre in Bucharest –

most out of their lives on all levels – physi-

ket and lowered VAT for fitness services last

“Bodyshape Gym” – in partnership with the

cally, emotionally, socially, etc. “Our mission

year; more people

is to help busy, successful people - who are

working out means

not necessarily passionate about fitness - get

fewer people seeking

back into shape in the shortest time possible,

medical assistance,”

regain their confidence and feel proud of their

said Valentin Vasile.

results. Besides the group workouts guided by

Currently, 80

experienced trainers, our concept combines a

percent of Revvolu-

nutritional plan with coaching on motivation

tion’s customers

and mindset. Our community is made up of

are women and 20

75 percent women and 25 percent men. The

percent are men,

members of the Bodyshape Transformation

based in Bucharest,

Centre community are mainly young profes-

interested in having

sionals, managers, executive directors and

a healthy lifestyle

entrepreneurs, but also several well-known

or trying to achieve

celebrities. Most of them are busy people who

fitness/weight loss

juggle their careers, families and social lives,

goals.

An opinion shared by Alionte as well, who

as well as other responsibilities,” Alionte adds.

“Romanians are also known for

2020 EXPECTATIONS

caring about their physical appearance and

biggest employer in Romania, Group Renault.

“We expect that even more people will

wanting to look great all the time – so more

It was an honour to have been chosen as the

understand the importance of exercise and

and more of them are starting to work out

official fitness provider for such a respectable

good nutrition in their lives and come and try

in order to have a more athletic body. But

brand and innovative corporation, which de-

our fitness programme. We’ll also try to reach

those who were already into gyms are now

cided to offer its 3,000 employees the benefit

looking for a more person-

of experiencing Bodyshape workouts right

alised experience; they need

at their headquarters. This partnership helps

constant support in their

us double our impact, double the number of

journeys and they want

amazing transformations and kilograms lost

custom-made solutions for

for people in Bucharest, making us even more

their problems. And that’s

accessible to those who really need to achieve

exactly why we are here. Our

long-lasting results in a fun environment,”

turnover for 2018 was around

said Bodyshape’s owner.

EUR 500,000, slightly higher

2020 starts with a transaction on the mar-

in 2019, and we expect an

ket, as Florina Onetiu, the main shareholder

increase of at least 10 percent

of the Happiness centre (Centrul Fericirii),

in 2020,” added Revvolu-

the first integrative transformation centre in

tion’s owner.

Romania, announced the sale of the majority

Bodyshape Transforma-

stake to the FIT4YOU aesthetics and wellness

tion Centre’s 2020 plans

network. Opened in 2015, Centrul Fericirii

include the launch of a work-

brought a new concept to the Romanian

further markets through our online programs,

out programme for teenagers and one for stay

wellbeing market, which generated a turnover

designed for our customers outside of Bucha-

at-home moms, as well as another centre in

that placed it among the top companies in

rest, new mothers who cannot go to the gym

Bucharest. Both categories of customers will

this industry. For 2019, the company reported

but want to get back into shape or frequent

be invited to join tailored programs which will

a turnover of over RON 2 million, with over

travellers. Unfortunately, as previous studies

respond to their particular fitness needs.

10,000 clients and a net profitability of 20

have shown, only 6 percent of Romanians had

“In 2018 our turnover was EUR 305,000

percent.

www.business-review.eu Business Review | February 2020

38 SUSTAINABILITY

Sustainable solutions for waste management in Romania The costs faced by Romanian producers seeking to meet their targets for selective waste collection and recycling – a market valued at EUR 250 million per year – are experiencing an artificial increase due to the problems in the system, thinks Ionut Georgescu, CEO at FEPRA International, one of the main Organisations that Implement Extended Producer Responsibility (OIREPs) in Romania.

By BR Team smells, air and groundwater pollution - in short, a danger to the environment and human health. Certain recyclable materials can pollute more than cars when they burn.

Landfills around big cities like Bucharest, for example, have expanded and are now a real danger to inhabitants’ health, and they can no longer be ignored. In order for the recycling circuit to be properly tracked, the waste must be collected separately. Throwing them out together significantly complicates the separation process and increases its costs. Moreover, some recyclable materials can get contaminated and become impossible to recover.

Recycled materials can become raw material for other materials and thus generate savings on electricity and water consumption. Waste can also be used as a raw material for energy production, for example in cement manufacturing. FEPRA has always promoted a functional system in which selective collection generates quality materials for recycling. That is why we are trying to develop an ecosystem by expanding our business in the collection and recycling areas.

How has the approach to waste management evolved at the European level?

logistic flows that follow manufacturing is a

Currently, waste management systems across

there has been a transition from the “polluter

the globe are based on the principle that the

pays” principle of towards manufacturers

Who should contribute to the successful management of waste?

polluter pays. The EU first transitioned from

taking responsibility for their packaging waste

There are several important actors, and citi-

this principle towards waste management 40

flows. Later, this responsibility was extended

zens’ support is essential. The entire circuit is

years ago, with the intent to establish who the

to other products like electrical and electronic

known as a collection scheme and is regulated

polluter is. In light of this, the easiest answer

equipment, batteries, tires, and used oil. This

based on European norms. Everything that

would be that citizens are the polluters. They

transition has allowed state authorities to find

happens in this scheme must be transpar-

generate waste and decide when a product

out whether manufacturers meet their envi-

ent and traceable. First of all, manufacturers

turns into waste. But the EU has raised some

ronmental protection responsibilities.

are responsible for packaging waste until it

result of the product design process. Hence,

exceptions for some products, where the product manufacturer has been established

reaches recycling or recovery plants. They can

Why is separate waste collection important?

delegate this responsibility to Organisations

as the polluter, instead of the consumer, and packaging waste is one example of this

Collecting unseparated waste means land-

sibility (OIREPs) - professionals who integrate

switch. It is important to note that 75 percent

fills growing near cities, with them catching

all other market players - or they can choose

of what happens in the operational and

fire during the summer, causing unpleasant

to pay a penalty to the Environmental Fund

that Implement Extended Producer Respon-

www.business-review.eu February Business Review | May 2016 2020

SUSTAINABILITY COVER STORY 14 39

Secondly, manufacturers must meet two

Administration. But if they choose to pay the

to the waste and thus contribute to lowering

penalties, this automatically diminishes the

the costs associated with its collection. As a

types of legal targets: one is related to the

chances for recycling targets imposed by the

result, the consumer who generates the waste

type of material – a 60 percent target for

EU and transposed into the national legisla-

eventually has the highest impact on it.

glass and 20 percent for aluminum – and the other one is the overall target, of 60 percent

tion to be met.

on all types of waste. OIREPs put all types of

must ensure that they only distribute

What can you tell us about the costs of selective waste collection?

products whose packaging is included in the

The EUstipulates that costs for selective

overall target, helping manufacturers meet

collection scheme. Next in the scheme are

waste collection should be calculated based

their responsibilities and optimising their

consumers, who must be aware of the need

on its quantity and quality and since 2018,

costs, especially for plastic (except PET) and

for selective collection and understand the

the market value of the material has been

aluminum. And this is what FEPRA does: it

negative effects of non-compliance. Local au-

added to this calculation. For example, at

provides a way for all the players involved in

thorities must make the collection infrastruc-

the international level, the price for a tonne

waste management to be more effective.

ture available and work with the “suppliers”,

of recycled paper was USD 120 a couple of

namely sanitation companies, which comply

years ago, but right now it’s down to almost

with legislation and collect waste selectively.

0. According to the European

Sanitation companies take the separated

Commission, the negative

waste and transport it to an authorised sort-

difference between the

ing station, then the waste is taken over by

value of the virgin mate-

transporters and delivered to recyclers. Recy-

rial and that of the recycled

cling can mean that the waste is reintroduced

one should be covered by

into the economic circuit,.

producers. In 2018, the EC

The next players are distributors, who

Organisations like FEPRA have the role of

materials together and meet the 60 percent

Third, OIREPs don’t sign individual contracts with collectors and recycling compa-

issued a new directive which

integrating all these players and contribute

further clarified the ways in

to the success of the system. The financial

which costs and incomes in

resources provided by our clients as a result

the system are set, as well

of us taking over their responsibility for

as the link between them.

packaging waste are used to stimulate the col-

Unfortunately, FEPRA is the

lection and separation of waste, mainly with

only company that wants to

the support of local authorities and sanitation

implement such a system on

companies. Together with sorting stations

the Romanian market. nies; an OIREP contracts a certain number of

and transporters, we make sure that the collected waste reaches recycling plants.

What kind of challenges will Romania’s waste management system face?

collectors and recyclers who work for all its

What role do citizens play in the selective waste collection process?

According to the European Commission’s

the system so that the recycling targets are

2019 Country Report on the implementa-

met. Last but not least, I think that it is im-

There is an inherent connection between the

tion of EU environmental policies (EIR), the

portant to think about how OIREPs will face

increase in consumption and the increase in

municipal waste recycling rate remains very

the challenges beyond 2030, when the global

the amount of generated waste. The Euro-

low in Romania, at 14 percent, which means

target for selective collection will go up to

pean Commission wanted to cut waste gen-

that Romania risks not meeting the recycling

85 percent, compared to today’s 60 percent.

eration rates without negatively impacting

target which has been set for 2020. Therefore

They should think of ways to support this in-

economic growth. This was possible through

it is clear that several system deficiencies

crease and reflect on the ways in which they

a system of shared responsibility between

must be addressed, and increasing the degree

will work with collectors, sanitation compa-

manufacturers and consumers. The “pay

of transparency would be a good starting

nies and recycling firms in order to support

as you throw” principle thus became a tool

point. The role of OIREPs is very important

investments in infrastructure.

designed to encourage individuals to selec-

in relation to manufacturers, for at least

tively collect their waste. This means that the

two reasons. First, if it had to meet targets

Will Romania face a crisis in the collection of packaging waste?

amount of money a citizen pays for municipal

individually, a manufacturer would have to

There are three types of packaging: primary

selective collection services depends on the

collect and recycle its own packaging, which

(which cover the product), secondary (which

quantity and the quality of the waste which is

is absurd. From this perspective, the advan-

allow products to be sold in a pack) and ter-

generated and collected selectively. Through

tage of an OIREP is that it collects all types of

tiary (used for transportation). Primary waste

their actions of separating waste or cleaning it

packaging in separate containers and recycles

is generated by the population, and the city

when needed, individuals bring added value

them regardless of their manufacturer.

hall is responsible for collecting it separately,

clients. Actually, OIREPs pay for that loss in

www.business-review.eu Business Review | February 2020

40 SUSTAINABILITY

it will be unalterable. Furthermore, from our

ment from the public flow alone. But there is

This means that there is a need for change.

What should be done to improve the system?

a paradox here: while the government knows

There are two models through which pro-

to apply the optical character recognition

that city halls are not ready to do this yet, it

ducer responsibility can be implemented:

system for standard documents in the report-

forces manufacturers to work with city halls.

a partial cost system and a full cost system.

ing system. This way, manufacturers will be

At the moment, city halls contribute with a

Romania has adopted the first model, which

able to see the quantities FEPRA manages in

maximum of 5 percent of the quantities en-

means that it only covers the negative cost

real time, as well as the companies it works

tering the system. There are about 1.5 million

and everything depends on what all the other

with to meet the targets and the average cost

tonnes of packaging on the market, of which

players in the system do. But wouldn’t it be

for each type of packaging for the municipal,

our target amounts to about 900,000 tonnes

better to adopt a full cost system? It implies

industrial and commercial flows. Producers

(or 60 percent of the total). Considering that

that the manufacturer is the owner of the

will also be able to find information about the

about 550,000 tonnes of those 900,000 are

packaging, meaning that some financial

money FEPRA spends on bonuses and waste

primary packaging, this means that each

transactions that can significantly alter costs

tracking and the value of our operational

county should have a target of 15,000 tonnes.

are eliminated from the system. In addi-

costs. FEPRA intends to operate the waste

The best performing county in Romania from

tion, in this case, the manufacturer will be

management system with a maximum of 15

this perspective is Covasna, but it only con-

fully responsible, will fully manage its waste

percent of its operational costs (less than 2

tributes 1,000 tonnes to the system, followed

privately and will no longer depend on local

percent of its net profit). Last but not least,

by Arges county (600 tonnes).

authorities in the medium and long term. In

we will allow state authorities (Environment

this case, manufacturers will contract the

Ministry, Oversight Committee, Environ-

therefore it can collect, provide bonuses and meet targets on the primary packaging seg-

experience in the American waste management sector, we are in talks with Dropbox

mental Fund Administration, Envi-

What is the solution to this problem?

selective collection service for the entire

FEPRA has decided to take the lowest risk

packaging amount, as well as all

for its clients, namely the risk of losing its

the services required in order

operational license. We made this decision

to get the material back. The

considering that our clients’ biggest risk is

major benefit in this case

depending on their specific

not meeting their targets. Hence, FEPRA has

is that the manufacturer

activities.

committed to meet the targets in its clients’

keeps the recycled material.

names, regardless of the type of packaging,

Therefore, a circular econ-

but taking the type of material into consider-

omy can truly be created. It

ation. The market’s response to our initia-

is not easy to implement such

sustainability reports. As a

tive has been very positive. Although local

a system, but it would be easy

novelty for the Romanian mar-

authorities have introduced some regulations

for FEPRA, because we know how to

which will be good in the long term, they

do it. Not all OIREPs know how to implement

to its clients, based on the European Commis-

don’t offer a short-term solution. As such, the

such a system.

sion documents regarding the contribution to

ronmental Guard) to create their own user accounts in order to access relevant information

Along with meeting their targets, manufacturers are forced to submit

ket, FEPRA will offer carbon credits

decreasing carbon emissions resulting from

government has to make a decision around

recycling. The next step is to get authorised

targets. Another important issue is account-

In this context, what are the new things FEPRA brings to the market?

ability for false data in the system. Back in

FEPRA is a trendsetter for the Romanian mar-

its may be used. In addition, because each

2017, Romanian authorities first established

ket, both from the perspective of applying the

manufacturer has the obligation to elaborate

that if the manufacturer entrusts its respon-

legal framework in the environmental sector

a set of documents regarding the prevention

sibility to an OIREP (formerly known as Re-

as well as in terms of its business model and

and reduction of waste generation in the

sponsibility Transfer Organisations), the latter

the actions it takes. First of all, we bring

chain, throughout GIS, a company that is part

gets a fine if it doesn’t meet the targets. Yet

credibility: we’ve never failed in our efforts

of our group and specialises in prevention

2019 came with a new regulation, which says

to meet selective collection and recycling

and design services, we will be able to offer

that the responsibility for the fine belongs to

targets.

support to our clients, as an extended respon-

the sanctions imposed for not meeting the

those submitting false reports, namely collec-

FEPRA’s goal for this year is to provide

on the carbon market, so that these cred-

sibility service.

We’re also working on a system for collect-

tors or the recycling companies, not OIREPs.

maximum transparency in regards to our

There are some OIREPs which are not visible

activity. We are currently working on a report-

ing not just waste, but also reusable packag-

in the field and yet they were reported to

ing and tracking software which addresses

ing. This system will help the manufacturers

have met their targets in 2018. In my opinion,

the reporting we do to our clients, the report-

impacted by the new local legislation (which

the system is still poor, and it especially

ing done by collectors, as well as the tracking

requires them to meet a minimum target for

works against manufacturers, which pays for

of waste. The novelty is that the data will be

reusable packaging) and will also contribute

the inefficiency of all the players.

recorded in a blockchain, which means that

to increasing their cost effectiveness.

www.business-review.eu Business Review | February 2020

MUSIC 41

This year’s top events for music aficionados With a large number of music festivals all over the country, most having enjoyed great international PR, Romania is wellpositioned as a party destination. Although we are still waiting for big names such as U2 to perform in the country, event organisers have already announced some surprises for 2020.

By Oana Vasiliu

THE YEAR’S MOST IMPORTANT EVENTS

memories. Pink Martini with China Forbes

Lara Fabian is returning to Romania with two

(Mar 30) returns to Bucharest for yet another

concerts, one in Cluj-Napoca (Jan 14) and one

outstanding performance. Almost sold out, so

in Bucharest (Feb 3), presenting her latest

book your tickets ASAP.

album and enchanting the audience with her greatest hits.

SUMMER FESTIVALS ON MY MIND

Tarja Turunen (Jan 23), one of the most

Summer starts with a brand new electro-

as part of the 50 Heavy Metal Years tour. This

famous feminine voices, is going to perform a

techno festival in the heart of the capital

is history worth seeing live, we bet.

video show with 360-degree projections.

city, called Saga Festival (June 5-7), featur-

This year’s biggest hit will be Celine Dion,

ing Disclosure, Don Diablo, Faithless DJ Set,

who is going to perform in Bucharest on July

a one man show to the Romanian public, a

Marshmello, Meduza, Alan Walker, Sam Feldt,

29, as part of her Courage World Tour. Tickets

performance full of stories from the band’s

Sigala and Tiesto, as well as many others. Get

are selling quickly, so book your place.

history and from his autobiographical book.

into the groove.

Bruce Dickinson (Iron Maiden) will bring

Of Monsters and Men, Nothing But

The British vibes will be brought by James

Thieves, Tom Walker and Woodkid will all be

This Button Do?: An Evening With Bruce

Arthur (July 9), who already mesmerised the

waiting for you at the 10th edition of Summer

Dickinson.

Bucharest audience during his last perfor-

Well (Aug 7-9).

Save the date, Feb 8, and go to What Does

mance.

SPRING COMES WITH MORE SUPERSTARS

Electric Castle (July 15-19) has already an-

FALL INTO MORE MUSIC

Still remember the lyrics of Daddy Cool?

nounced the first names of this year’s lineup:

Classic is always fantastic, so they say. David

Great, then you have to book your ticket to

twenty øne piløts, Foals, The Neighbourhood,

Garett is back in Romania presenting Unlim-

the Boney M concert (Mar 8). The band is

Fisher, Zhu. And the best is yet to come, as we

ited love tour, with two performances, one in

celebrating 45 years of performances and

already know.

Bucharest (Oct 21) and the other in Cluj-Nap-

the event is going to have an opening act

by Precious Wilson (Eruption). Bring on the

Judas Priest (July 21) is coming back to Romania with a concert at Arenele Romane,

oca (Oct 23).

And the best is yet to come.

www.business-review.eu Business Review | February 2020

42 DETOX

Got detox on your New Year’s resolutions list?

Every year, millions of people make the same New Year’s resolutions: losing weight, reducing stress, trying to make better food choices, and, of course, increasing physical activity. Sounds familiar? We bet it does. But what are your real options in a city like Bucharest?

and resistance and it’s suitable for all ages because water’s buoyancy helps you move more freely. The hydrostatic pressure enables one’s blood flow to circulate more effectively throughout the body. This effectively decreases blood pressure and, in the long run, decreases resting heart rate. And it’s

By Oana Vasiliu

amazing. Aqua Sport (www.aqua-sport.ro), Bery Fitness & SPA (www.bery-fitness-spa. ro), Body Exprim (www.bodyexprim.ro), Viva Sport Club (www.vivasportclub.ro) and World Class (www.worldclass.ro) all offer packages for these types of workout sessions. Prices start from RON 70/session.

Indoor Cycling, also known as spinning, is a well-established sport with a history of over 20 years. These classes are mostly for those who are looking for a cardiovascular workout that requires a great amount of energy expenditure with minimal impact on your hips, knees and ankles, while providing a huge endorphin boost. In Bucharest, there are beginner, intermediate and advanced classes, so don’t panic when you see the

W

Start your detox planning

60-minute session: you don’t have to spin your heart out.

Floating therapy happens in a sensory de-

ith another year gone, it’s only

environment, according to the CDC’s 2013

natural to take some time to

Report on Human Exposure to Environmen-

privation tank with salt water, which is dark,

reflect on life and goals. The new

tal Chemicals.

soundproof, and heated to skin temperature.

As you’re cut off from all outside stimulation,

year brings the feeling of excitement and opportunity for a new beginning, and especially

THE KEY TO SUCCESS

including sound, sight, and gravity, floating

a chance to improve your health, but without

As you’re browsing the internet to find the

weightlessly in silence and darkness, your

a strict programme and clear objectives, it

best detox diet, most websites will tell you

brain is supposed to enter into a deeply re-

might prove impossible by the third week of

about one key to success: you need a good

laxed state. Some studies show that this type

January, when we “celebrate” Blue Monday,

plan, which should serve as a map and give

of therapy increases originality, imagination,

the most depressing day of the year.

you structure, together with a community to

and intuition, which can all lead to enhanced

support your efforts and to encourage you in

creativity, but may also improve focus and

your journey.

concentration. Check out Happy Float (www.

Simply put, we are exposed to toxins all the time. They are present in the food we eat,

happyfloat.ro), The Float Room (www.

the water we drink and the air we breathe.

Some come naturally from the environment,

THE LATEST TRENDS IN TOWN

thefloatroom.ro) or Ovo Float Center (www.

while many others are synthetically created

Aqua Gym classes are increasingly popular

ovofloat.ro) to schedule a session.

through industrial activity. That’s why our

in Bucharest, with a lot of new hotels with

bodies, which are naturally in “detox mode”

pools opening across the city. Working out

word everyone’s using, but it’s actually a

every minute of every day, can’t fight them

in the water is one of the most therapeu-

state of mind, the basic human ability to be

all. Studies show that over 83,000 man-

tic activities one can engage in. Aqua gym

fully present, aware of where we are and

made chemicals are circulating freely in the

or water aerobics builds cardio, strength

what we’re doing, and not overly reactive or

Mindfulness seems to be the new buzz-

www.business-review.eu Business Review | February 2020

DETOX 43

FOOD The greatest challenge is probably having a healthy diet and providing your body with the good kind of fuel. The local supplements market has increased significantly, along with the number of nutritionists and holistic treatment providers, not to mention the food bloggers who are promoting healthy recipes and natural, fair-trade products. From this point of view, Romania still benefits from good soil and tasty farm products, and a trip to the local market can help you meet your need of healthy nutrients from fruits and vegetables.

For those who don’t have the time to prepare their own detox treats, a series of healthy businesses have been developed recently. frufru is a well-established healthy overwhelmed by what’s going on around us.

cial media platforms. The new smartphones

food provider whose fresh products can be

Although most of these practices can be done

can provide data about the amount of time

found in most Mega Image stores, while de-

anywhere, some prefer to do it in a group,

you’ve spent using them, and the figures can

tox juices are increasingly popular, made by

with everyone working together on their

be quite scary. Research has shown that tech-

JuiceIT, Rawdia or Iconic by Camelia Sucu, to

state of mind. Group sessions start from RON

nology can be stressful, digital devices can

name a few.

80.

disrupt sleep, and heavy use may be linked to mental health issues such as increased ADHD symptoms and conduct disorder, as

THE MARKETING BEHIND WELLNESS THERAPIES

50 different options. Meanwhile, coach and

well as worse self-regulation. If you spend

Please read all the instructions carefully and

nutritionist Valentin Vasile from Revvolution

time on social media, you might find yourself

read reviews about other people’s experienc-

is developing an online platform for home

thinking that everyone else seems to be liv-

es with the products and services you want

workouts, which will also provide a person-

ing a fuller, richer, or more exciting life based

to acquire, and most importantly, get a com-

alised food plan.

on their posts, which is probably not true,

plete medical check-up before you try any of

and you might also experience fear of miss-

the above to learn about your body’s current

DIGITAL DETOX

ing out (FOMO syndrome), which is again a

condition. Not everything will be a good fit,

A digital detox is a period of time when a per-

false problem. Try to be more present and be

so don’t forget to be gentle with yourself.

son refrains from using tech devices and so-

aware of the dangers.

NATIONAL AND INTERNATIONAL WELLNESS TOURISM Although not used to their full potential, Romania has several places where you can find wellness programmes - both therapy and detox cures with mud or mineral waters. Check out resorts in Eforie Nord, Slanic Moldova, Baile Herculane, Baile Felix, CalimanestiCaciulata, with hotels offering complete detox programs. International wellness tourism is also becoming more and more attractive, with suitable packages available through tourism agencies such as Eturia and Carpatour, which have Bali, Sri Lanka or Maldive as top destinations.

GOING ONLINE FOR PRACTICE You can access online yoga classes through www.yogaonline.ro and select from over

www.business-review.eu Business Review | February 2020

44 CONTEMPORARY ARTS

Retrospective: New spaces for culture and alternative art Small galleries, impressive old industrial spaces, some Communist history made public and even a completely new building marked 2019 in terms of new cultural spaces. It is definitely still not enough to cover the emerging local cultural industries, but Rome wasn’t built in a day, either.

Where should you check in?

By Oana Vasiliu

Kunsthalle Bega

Cazul 101 Gallery

THE COMMUNIST APPROACH

for this museum are available on the AirBnb

BUCHAREST’S CREATIVE NEW SPOTS

While not necessarily related to the celebra-

platform.

Cazul 101 Gallery has moved to another artist-

tion of 30 years since the fall of the Com-

80east (Bucharest) is an NGO initiative

run space, a garage of approximately 20 sqm

munist regime, a few chapters of Romania’s

designed to present glimpses of recent Roma-

converted into an exhibition space for site-

recent history have been opened to the public

nian history, focusing on living and working

specific installations and works. The team

over the past year. Fortul 13 Jilava (near

in the ‘80s. A project for civic education and

thus offers an environment that, although

Bucharest) - an annex to the Jilava jail - is

for the conservation of recent memory.

constrained by space, encourages artists, giv-

going to be turned into a museum. The last

ing them total freedom of expression.

time this part of the jail operated was to hold

FUTURE INVESTMENT

The Hive is a new location hosting three

protesters during the December 1989 events,

Kunsthalle Bega (Timisoara) is an alternative

creative workshops on different design areas:

but the fort was best known for the political

space facilitating the progression from clas-

glass (Spectrum, which makes you discover

imprisonments of the Communist period. Re-

sical institutions to experimental ones; there

an innovative approach to stained glass,

cently, a lot of civic initiatives have provided

is a need for places that embody the qualities

fashion (ATELIER 42, which serves as the

guided visits to this place, telling people

of a museum and the experimentalism of

primary creative outlet of a tailoring work-

about the atrocities committed by the regime.

alternative spaces. The founders say that the

shop, offering an exquisite collection which

The Museum of Living in Communism

ideal solution for a city full of art is the “kun-

aims to satisfy the need for uniqueness) and

(Brasov) is a museum-hotel, a mix that

sthalle”, a place that takes into consideration

contemporary jewellery (JULS, a conceptual

allows visitors to experience the lifestyles

the values of a museum but has the ability to

jewellery brand defining a minimalist line,

of the Ceausescu era, through magazines,

function freely. And they seem to have found

primarily using geometric shapes).

books and fried Romanian banger (parizer) to

the best place in this old industrial building.

furniture and other decorative symbols from

CREIC or the Regional Center for Excel-

Mercato Comunale, in a new space, where this versatile urban pop-up garden offers

that period. You get access to films about

lence in Creative Industries (Cluj-Napoca) is a

co-working spots, superstar food-trucks, a

communism, documentaries about the 1989

one-of-a-kind building in this cultural space:

farmers’ market, and one of the largest selec-

Revolution or the 1987 workers’ revolution

it is brand new and can be used by anyone

tions of craft beers. Best to visit during the

in Brasov, local newspapers from the ‘70s

in the creative industries, offering spaces for

summer, but a perfect place to work in winter

and ‘80s, magazines and almanacs. Bookings

both freelancers and companies in this sector.

time as well.

www.business-review.eu Business Review | February 2020

RESTAURANT REVIEW 45

EXPENSIVE MEDIOCRITY >>> Mandaloun, 89 Caramfil, 0747 020 469 <<<

I

t is the ugliest restaurant I have ever

at RON 60-80, the price mounts up. Even

Many dishes also included “seven spice”.

encountered - simply a triumph of

a portion of rice costs RON 20. And all this

This is simply a powdered mix of pepper,

bad taste over style. There are seven

without their wine, which is not cheap, but

cumin, coriander, cardamom, cloves, nut-

is good quality.

meg, and ginger. All are seeds ground into a

colours in the rainbow, but when you mix them with pastel shades there are more like

So we had a “hummus”, loved the world

powder. How simple - and the House tosses

seventy, and it feels like they are all on dis-

over as a pureed mix of chickpeas, lemon

it into various dishes to give a Lebanese

play in this ludicrous place. Multicoloured

juice, tahini paste and olive oil. How simple

“feel” to the flavour. Go to the spice shops

tables, walls and seats converge in a riot of

is that! But the House wants to make it look

in Obor, buy your spice there, and you can

mismatched madness. But enough about

skilled and complicated, so they have five

do it yourself at home.

that; let’s eat.

varieties of it by sprinkling it with a tiny top-

So off to the mains. They had several

ping of minced meat, pepper, etc. But hell, it

chicken or beef dishes on the menu, but

It is one of 30 Lebanese chophouses

is just hummus.

in the city. Savvy restaurateurs

that is down to a bit of laziness

Off we

have capitalised on the fact

from the House, as they have chosen an easy

that every, yes every

option in terms of

ingredient of Leba-

supply. The real

nese cuisine is

meat staple

available here in town. So let me

in Lebanon

turn you into a

is lamb. It is

Lebanese cook

hard to come

in an instant

by most of the

and do not be

year, so the House com-

turned off by

promised by

the names of the dishes, as they are

using “berbec”,

simplicity itself to

which is a tough old mutton. This pensioner

make. went to

Start with fresh corian-

a “sambousek”, a

der, parsley and mint, and you’re

was cooked before it passed away of old age.

in business. You can add this trio to almost

thumb-sized pastry filled with a choice of

anything you make, and the House used

five ingredients, including cheese, spinach,

flavour of seven spice. The mutton was

them liberally. They had a “fattouche”,

and minced meat. So boring and with no

shredded rather than cut into chunks or

which is almost a tourist staple of the

mystery. There was even less mystery with

slices. I sympathise with the House for this

“trio” in a salad, plus thin toasted chips of

their “labneh”. It was yoghurt mixed with

presentation, as there is little else you can

bread looking like corn chips. So easy, but

seven different things including olives, mint

do with mutton. But they made it palat-

when you take out the bread and replace

or pomegranate, so why call it labneh? It’s

able, so bravo House.

it with bulgar wheat (looks like rice) you

yoghurt.

rename the same dish to “tabbouleh”. Both

Each dish on the menu had a description

I had a lamb stew with the dominating

There are literally hundreds of Lebanese recipes that you can find online. Just

are starters, out of a vast array, all costing

of the ingredients which always included the

Google Lebanese cuisine, and make them

around RON 25-30.

word “condimente”. Do they think we are

yourself. You will be stuck for a supplier of

But they are small, and they are tradi-

so stupid that we would not understand or

lamb, and your best bet is to look up a Halal

tionally served as “meze”, meaning you fill

recognise the condiments? Is it just salt and

retail butcher in town.

the table with a large selection of different

pepper? I suspect they are trying to mystify

meze. At RON 25 per dish (and you could

you into thinking there is something special

Michael Barclay

order 4-5 per person), when you add a main

or exotic in them. Let me help you out here.

mab.media@dnt.ro

www.business-review.eu Business Review | February 2020

46 CITY

Cultural calendar Liquid Saloon concert Jan 27, Control Club

By Oana Vasiliu

Global pop star Lara Fabian is on tour, celebrating not just her 30-year-long music career, but also her 50th birthday. The latest tour will feature both her classic hits as well as her latest Frenchlanguage album, Papillon. Tickets are still available and prices start from RON 325.

The well-established Jazz Nouveau series starts its new season with Liquid Saloon, who are going to perform in Romania for the first time. The Tel Aviv band is a newly-formed band made up of

Disney concert with the Bucharest Symphonic Orchestra Feb 7-8, Metropolitan Circus Bucharest

gettable show with his orchestra.

three leading musicians on the Is-

The artists will perform Vivaldi’s

raeli scene: Amir Bresler (Avishai

“Seasons”, as well as many other

Cohen, Kutiman Orchestra) on

pieces that will capture the audi-

drums, Sefi Zisling (Funk’n’stein,

ence in the magic of classical

The Ramirez Brothers) on trum-

music. Tickets start at RON 99.

pet, and Nomok (A-WA, Gili Yalo) on keyboards, as well as bass

Turandot premiere Feb 13-16, National Opera Bucharest

player Elysaf Bashari and guitar player Roi Avivi. The band is going to present their latest album, with music that is uplifting and

On Control Club’s the alternative

contains groovy explorations of

scene, the Tag Your Ideas project

sound, fusing together elements

offers a meeting with artist Cata-

of African Highlife music and

lin Burcea, a contradiction of two

jazz.

Lara Fabian concert Feb 3, Sala Palatului

distinctive realities that have in Do you enjoy the music of

common the idea of a city’s main

Disney cartoons? The Bucharest

street. “The social ‘matrix’ and

Symphonic Orchestra is going to

the relation of accommodation

perform the most famous songs

in a city becomes the reason of

from the Disney world: The Lion

Under the Tiberiu Soare’s baton,

our time. The relation between

King, Mary Poppins, Aladdin,

one of the most famous pieces by

resident and public sphere, as

Frozen, The Jungle Book, The

Giacomo Puccini is returning to

a co-habitation, ease, initiation

Beauty and the Beast, and The

the stage of the National Opera of

and conservation of a culture of

Little Mermaid are all going to be

Bucharest. The cast has not yet

a very determined community

part of the playlist. An all-family

been announced, so stay tuned

show the potential of interfering

type of event.

for more information. In any

with and re-improving a public

case, the performance is going to

sphere/space,” describes curator

be spectacular.

Eugen Radescu Catalin’s installa-

Luka Sulic (2Cellos) concert Feb 8, Sala Palatului Luka Sulic, the member of the well-known band 2Cellos, returns to Bucharest to perform an unfor-

tion. While there, grab a beer and

Tag Your Ideas: Catalin Burcea x FREE NOW Until February 20, Control Club

take a look at the club’s programme - you will definitely find a live concert or a party concept that will make you stay longer.