VASTINT ROMANIA TURNS CENTRAL BUCHAREST INTO REAL ESTATE HOTSPOT
WHERE ROMANIA TALKS BUSINESS March, 2020 / Volume 24, Issue 2
www.business-review.eu
6
ROMANIA’S STAR SECTORS IN 2020
14
ROMANIA AMONG THE MOST ATTRACTIVE MARKETS FOR US AND UK TECH FIRMS
27
LOCAL STARTUPS LOOKING FOR A CHORE NEAR YOU
36
Mircea Dragos
CUSTOMER EXPERIENCE AT CORE OF BRAND SUCCESS
www.business-review.eu Business Review | March 2020
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Editor-in-Chief •
6 Vastint Romania turns central Bucharest into real estate hotspot
COVER STORY
Celebrating local business stars
R
8 Customer experience at the core of successful brands
omania still has one of the highest potential growth rates
MAIN STORY
in Europe, although it has slowed down compared to previous years. Major structural reforms in areas like work-
force mobility or education could unlock significant growth down the road with fairly little effort, though 2020 does not look like the magic year due to the upcoming elections. In addition, the local
14 Romania’s star sectors
economy is already adapting to the new realities, as expansion
in 2020
cooled to around 4 percent in 2019 from 4.4 percent in 2018 and 7.1 percent in 2017. Gaping fiscal and current account deficits, yielding increased vulnerability to shifts in external sentiment, suggest GDP
ENTREPRENEURSHIP
risks are skewed to the downside, according to Colliers International Romania. Therefore, we’ve decided to dedicate this month’s main story to Romania’s star sectors in 2020, setting the spotlight on eight industries with great potential to shine this year. From real estate to private healthcare, entertainment, HoReCa, fintech, software, en-
34 Brexit shakes up EU startups’ competition over funding and talent
36 Local startups looking for a chore near you
ergy, and telecom, these sectors will all need to face the challenges
CITY
of a local business environment that will be strongly influenced by elections. For example, the slower economic growth expected in Romania this year, although estimated to outperform most European economies, will undoubtedly influence the evolution of the real estate market. Business Review highlights the achievements of the business community every year, and the 2020 edition of Business Review Awards - our flagship event - will celebrate the companies, business leaders, and entrepreneurs who have shown drive and initiative and have achieved the best results in the business class of 2019. Ladies and gentlemen, let’s celebrate the stars of the local business environment at the 15th edition of the BR Awards Gala!
42 Bucharest’s best kept secret: the city centre facelift
44 Gopo Awards: Romanian films in review
45 Restaurant review 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 Business Review is a member of Fwei
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
Romania passes 250 green buildings threshold
increase occupant comfort, buildings designed to achieve maximum levels of sustainable certification. Furthermore, we are witnessing greater openness from residential developers towards green certifications as well as the first sustainablecertified factory. On the other hand, over 95 percent of public buildings and most of those delivered prior to 2010 require
Tivadar Runtag has taken over the CEO role at Chimcomplex and will lead a newly-formed executive team tasked with coordinating the company’s financial, commercial, production, and distribution operations. A graduate of the Budapest University of Economics, he previously held several management positions in Hungary, Romania, Turkey, and the Czech Republic, in companies such as Shell, Medicor SA, OMV or Pista-Oil.
Iulia Stanciulescu-Ilie has been named Partner & Coordinator of the commercial litigation and arbitration practice at CEE Attorneys / Boanta, Gidei si Asociatii. Before joining CEE Attorneys / Boanta, Gidei si Asociatii, StanciulescuIlie worked at some of the most reputable law firms, focusing on the litigations sector. She holds both a Bachelor’s and a Master’s in Law from the University of Bucharest. Iulia is well-versed in the Romanian legal environment and has been praised by peers for her wide range of abilities and know-how in litigation, real estate and construction, labour litigation, data protection, and competition disputes.
refurbishing, so there is still much work to be done,” said Razvan Nica, managing director at BuildGreen and a pioneer of sustainability in Romania. 2019 also brought the first
Cluj-Napoca is one of the cities with many green buildings
tions, the highest rating at the global level, for Lidl and Penny
By Aurel Constantin
Market stores in Bucharest and
Over 250 buildings and real
houses, residential projects
Otopeni. Meanwhile, office
estate projects in Romania
or factories were certified as
project Bucharest Business
have been certified as “green
sustainable in 2019. Most (about
Garden, developed by Vastint,
buildings” based on interna-
75 percent) are located in Bucha-
obtained the highest rating in
tional sustainable schemes
rest, followed by Cluj-Napoca,
the American LEED certifica-
like BREEAM, LEED, EDGE and
Timisoara, and Brasov. “The
tion scheme. Last year also
WELL, according to BuildGreen
implementation of sustainable
marked the first multiple certi-
data, the leading consultant in
principles has already become
fications achieved by a real es-
the field of sustainable build-
a widespread practice on the
tate project - Bucharest Renault
ing design, development and
Romanian real estate market.
Connected - with BREEAM and
certification in Romania.
We already have office buildings
EDGE, as the developer wanted
with sophisticated systems that
to maximise the benefits a
reduce energy consumption and
green certification brings.
Over 40 office buildings, commercial centres, ware-
IHG to bring Holiday Inn brand back to Romania By Mihai Cristea InterContinental Hotels Group
hotel is to be developed under a
(IHG), one of the world’s leading
franchise agreement with first-
hotel companies, has announced
time IHG partner De Silva Group.
that it would bring the Holiday
The Holiday Inn Bucharest Times
Inn brand back to Romania with
will have a city-center location.
a signed contract for Holiday Inn page 5
BREEAM Outstanding certifica-
Bucharest Times. Set to open in Autumn/Winter 2020 and have 102 rooms, the
The announcement is an important strategic step for the growth of IHG’s presence in Romania, marking its first contract
The hotel will feature Holiday Inn’s Open Lobby concept
www.business-review.eu Business Review | March 2020
NEWS 5
Three European countries have more GDPR data breaches than all other member states combined By Mihai Cristea A study conducted by Precise Security found that the Netherlands, Germany and the United Kingdom are the countries with the most GDPR data breaches in the EU, totaling more than 100,000 reported cases, a figure that is higher than the cases reported in all the other member states combined.
Sevan Kaloustian is the new Managing Director at The Janssen Pharmaceutical Companies of Johnson & Johnson Romania. Previously, Sevan Kaloustian was the Commercial Director of Janssen Poland (2017-2019). Sévan Kaloustian holds a Ph.D. in Pharmacology and a Master’s Degree in Pharmacoeconomics, both from the Université de Montréal in Canada.
Netherlands is one of the countries with the most GDPR data breaches in EU
The Netherlands and Germany lead the ranking
reported since then, according
(November-December 2019
and are almost head-to-head,
to DLA Piper’s 2020 GDPR Data
and January 2020), the value
with 40,600 and 37,600 data
Breach Survey. The rising num-
of fines increased by EUR 48
breaches respectively, while
ber of cases goes to show how
million, with the total figure of
the United Kingdom comes
valuable personal data is and
GDPR-related penalties reach-
in third with 22,100 reported
the lengths to which hackers or
ing EUR 450 million since its
cases. The top 10 is completed
otherwise malevolent organisa-
introduction in May 2018.
by Ireland (10,500 cases), Den-
tions are willing to go in order
Almost 70 percent of the
mark (9,800), Poland (7,400),
to acquire this information. Of
total figure was imposed by
Sweden (7,300), Finland
course, not all data breaches are
the UK’s Information Commis-
(6,300), France (3,400), and
due to such activities, with many
sioner’s Office – EUR 314.9 mil-
Norway (2,800).
well-intentioned organisations
lion. The bulk of this sum was
still struggling to understand the
directed to just two organiza-
new data privacy standards.
tions: British Airways (EUR 204
The GDPR regulation was introduced by the EU in May 2018, with more than 160,000 data breaches having been
According to data from the same study, in just 3 months
million) and Marriott Interna-
Ciprian Dascalu is the new Chief Economist and Research Director at BCR. He succeeds Horia BraunErdei, who was named CEO at Erste Asset Management Romania in November 2019. The 40-year-old Ciprian Dascalu first entered the banking world in 2003, having acquired vast experience in macro and micro economics, financial markets and economic models, statistics, risk management, retail and corporate banking.
tional (EUR 110 million).
in the country for over 20 years and joining two existing IHG hotels: InterContinental Bucharest and Crowne Plaza Bucharest. The hotel will feature Holiday Inn’s Open Lobby concept, a revolutionary approach that has transformed the traditional hotel lobby format by combining the front desk, lobby, restaurant, bar, lounge area, and business center into one open, cohesive space, with a refreshed design that gives it a more contemporary feel.
Laura Alexandra Sirbu has been appointed as Head of Desk at Ebury Romania, the local subsidiary of international fintech Ebury. Sirbu graduated from the Bucharest Academy of Economic Studies in 2010, also holding a Master’s degree in the same field from the Doctoral School of Finance and Banking (DOFIN). She has worked for several financial institutions in Romania (Citibank Europe, Banca Comerciala Carpatica, OTP Bank, MoneyCorp), before joining Ebury in January 2020.
www.business-review.eu Business Review | March 2020
6 REAL ESTATE
Vastint Romania turns central Bucharest into real estate hotspot Antoniu Panait, managing partner at Vastint Romania, tells Business Review about the impact of Timpuri Noi Square, one of the company’s flagship projects, and the way it reshapes the Bucharest real estate market. By Anda Sebesi Timpuri Noi Square is a dynamic new urban hotspot in the city centre. What are its main features? Our team is extremely proud that we’ve managed to develop a new business hub with our project Timpuri Noi Square, in the central area of Bucharest. Timpuri Noi Square is a mixed project that is going to have an estimated total built area of 150,000 sqm. Reconverting an old factory into a successful and sustainable project, first of all dedicated to a growing community represented by the tenants of Timpuri Noi Square, is one of the project’s main features, combined with some technical details that we brought to the market for the first time. Besides the location, which is certainly one of our most important assets, we have built a project that is going to be sustainable over the years, marking a step forward in the evolution of these types of projects.
What are its key benefits? Vastint Romania has been the promoter of 3-metre floor-to-ceiling height in our class
even greener office hub, Business Garden Bu-
comes as a complementary project, covering
A offices, as well as of great finishes and
charest, which strengthens the bond between
the western part of Bucharest, with a unique
construction materials, having established
urban nature and people with more than 30
landscape and an amazing reception concept,
a new standard for the Romanian market.
percent green areas, an amazing reception
as well as technical facilities that have led
We only use energy-saving electrical equip-
concept with common working spaces.
to an LEED Platinum certification with the highest score in CEE. Both projects are LEED
ment and LED lighting, HVAC systems with
platinum certified, and taking the first 5 places
are openable at every 2.7 metres, with an
What can you tell us about the development of your business on the local real estate market?
emphasis on increased natural light provision
Vastint’s history in Romania started more
aware about the greatness of our projects and
and views of outdoor surroundings, but the
than 10 years ago, when nobody believed that
the impact we can have on the market.
most important element would be our focus
we could change companies’ point of focus
on the community: that’s why we are creating
from the northern part of the city to the cen-
and implementing multiple activities for the
tral area. Timpuri Noi Square has shown its
What are your short and medium-term plans in Romania?
people that work in our buildings. Timpuri
success in becoming one of the most impor-
The future will bring a further development
Noi Square holds a great focus on the people
tant office hubs in Bucharest, hosting great
phase for the office buildings in Timpuri
who are populating our buildings. As a result
names like Biutiful Downtown, Carnivale
Square, as well as a new challenge for Vastint
of the great impact that Timpuri Noi Square
Food Market, Zitec, GoPro, Impact Hub, Bolt,
Romania, through the Sisesti residential
had on the market, we decided to develop an
and many others. Business Garden Bucharest
project.
superior ventilation capacity using 100 percent fresh air supply, all our windows
in the Romanian ranking has been our greatest achievement so far, and has made us more
8 COVER STORY
www.business-review.eu Business Review | March 2020
www.business-review.eu Business Review | March 2020
COVER STORY 9
CUSTOMER EXPERIENCE AT THE CORE OF SUCCESSFUL BRANDS With an international approach centred on three brands myhive for offices, VIVO! for shopping centres and STOP SHOP for retail parks, IMMOFINANZ offers unique experiences in all its properties: from the modern, collaborative office environment to a complete leisure experience or a practical approach to shopping. By Anda Sebesi
www.business-review.eu Business Review | March 2020
10 COVER STORY
W
ith more reasons to be optimistic than not, Romania is
office buildings to those with a value-added angle or reconversions,”
again set to outpace most EU countries in terms of eco-
says the same report.
nomic growth in 2020. At the same time, all real estate
segments are still displaying robust growth, albeit a bit mellower than the record-setting pace seen in recent years.
As the local market grows, so does the impact on both the office and retail space transactions. “Romania is a dynamic market with steady economic growth,
As pundits say, the local economy is already adapting to the new
which is translated into positive prospects for our retail and office
reality, as expansion cooled down to around 4 percent in 2019 from
operations. For example, the increase in office space transactions
4.4 percent in 2018 and 7.1 percent in 2017. Gaping fiscal and current
comes on the backdrop of strong demand in the consumer goods
account deficits, yielding an increased vulnerability to shifts in ex-
sector. In retail, the increased purchasing power has seen shop-
ternal sentiment, suggest GDP risks are skewed to the downside, so
ping centers around the country getting more visitors, and as the
there will be no defying gravity in 2020 (a growth around 3 percent
minimum wage grows this trend is expected to continue in 2020,
looks realistic). Yet
offering substantial
Romania still exhibits
growth possibilities,”
one of the best po-
says the country
tential growth rates
manager, adding that
in Europe, and major
the expectation is for
structural reforms
Romania to continue
(workforce mobil-
on this steady growth
ity, education) could
path.
unlock significant
As the real estate
growth down the road
industry mirrors
with fairly little effort.
economic develop-
“Romania has
ment, there are still
had a steady growth
many opportunities
of roughly 3 percent
for investment. “As
since 2013. The eco-
key areas in major
nomic growth rates
cities develop, they
put our country on
tend to turn into hubs
the map for foreign
and trigger a need for
investors, as it is be-
a variety of properties
coming a driver of the
to serve the need for
region. For example,
office, retail or even
the transaction vol-
leisure space. As a
ume on the real estate
leading owner of of-
investment market
fice and retail space,
continues to enlarge
we have attracted
and is well distributed
several new tenants
across the three sec-
to our properties,
tors: office, retail, and
but have also noticed
logistics properties,”
that many existing
says Fulga Dinu, country manager for operations at IMMOFINANZ
tenants with growing businesses demand additional space in our
Romania.
properties,” says Dinu about the development of the local real estate
According to Top 10 predictions in 2020 by Colliers International,
market. IMMOFINANZ’s main directions are the development of its
last year was a good one for the Romanian investment market,
office and retail portfolio as well as the strengthening of its position
with yields moving a bit lower and overall demand maintaining
as a leading commercial real estate player on the local market.
robust levels. As things stand now, 2020 may actually be the best year in the post-crisis cycle, says the same report. There are already
LOCAL FOOTPRINT
several office deals that could soon close and be worth over EUR
With nine office buildings in prime Bucharest locations and five
600 million, with several buildings on the market asking yields
retail properties across the country, the IMMOFINANZ properties in
below 7 percent. And this is only related to the office segment, while
Romania have, as of September 2019, a book value of approx. EUR
industrial and retail submarkets are also doing fairly well, though
645.0 million and represent 14% of the international company’s
there are some supply-side limitations here. “Going forward, we’ll
total standing portfolio.
be looking for a deepening of various submarkets, from pure class A
In the office segment, the company has constantly made signifi-
www.business-review.eu Business Review | March 2020
COVER STORY 11
cant investments to provide best-in-class properties and services
noticed that employers have started to recognise that a thoughtful,
to its clients. Meanwhile, on the retail side, pans are focused on
progressive environment can reflect brand value while improving
improving experiences in VIVO! shopping centers.
workers’ experiences. It is not so much about working spaces any-
“We center on three brands - myhive for offices, VIVO! for shop-
more, but about living spaces, with employees’ wellbeing becom-
ping centers, and STOP SHOP for retail parks. Each brand offers a
ing a priority. This is why our myhive concept stands out, as it is
unique experience – from the modern, collaborative office environ-
entirely created with respect and care for the needs and desires of
ment to a complete leisure experience or a practical approach to
modern people,” explains Dinu.
shopping,” says Dinu.
In Romania, at the end of 2019, IMMOFINANZ started a refurbish-
Speaking about the company’s business strategy, Dinu says that
ment process of two office buildings located in its IRIDE business
IMMOFINANZ is a long-term oriented value-added investor on the
park, and the process involves a full modernisation and a relaunch
Romanian market, with a clear focus on a high customer orienta-
under the myhive concept. The refurbishing targets include a rede-
tion which results
sign of the main lobby
in a high occupancy
areas in order to allow
rate and a stable
plenty of natural
cash flow. “Against
light, as well as the
this background,
implementation of an
we will continue on
attractive and warm
our chosen path by
architectural design.
constantly adapting
The process also
to our tenants’ needs,
involves a recon-
which nowadays have
figuration of the main
become increas-
entrances, a redesign
ingly sophisticated
of the common areas
and challenging.
and the upgrade of
The office and retail
the mechanical, elec-
sectors are both very
trical and plumbing
competitive. As an
systems. “The myhive
international com-
IRIDE | eighteen and
pany and long-term
myhive IRIDE | nine-
investor in Romania,
teen buildings will
we are in a very good
reopen this year, with
position to grow with
an important share
the market,” she adds.
of their areas already
As for 2019, the IM-
having been leased,”
MOFINANZ represen-
says Dinu. Currently,
tative says that it was
IMMOFINANZ has
a very successful year
three myhive office
in terms of further
buildings: Iride
strengthening its mar-
Tower, S-Park, and
ket position and offer
Metroffice, all located
to its clients. “Within our office buildings, we have gained a number
in Bucharest. The company’s strategy and its focus on customer
of new tenants like Sodexo, Rohde & Schwartz Topex, Whole Food
care have ensured a high occupancy rate of around 95% percent
Process (trickSHOT), Stradale, and Motul.”
across its entire portfolio. In the office segment in 2019, IMMOFI-
FOCUSING ON A FRIENDLY WORKING ENVIRONMENT As the place where an employee spends most part of their day, the office environment has become a very important element of everyday life and it has to respond to various important needs and desires people have. Hence, the wellbeing of employees and customers has become both a challenge and an opportunity for office and retail developers across the board. Office buildings nowadays have to offer much more than simple work-spaces, and this is IMMOFINANZ’s major focus. “We have
“IN THE LAST YEARS WE HAVE SUBSTANTIALLY STRENGTHENED OUR POSITION AS PROVIDER OF HIGH-QUALITY OFFICE SOLUTIONS IN OUR CORE MARKETS,” OLIVER SCHUMY
www.business-review.eu Business Review | March 2020
12 COVER STORY
NANZ Romania signed lease contracts for almost 50,000 sqm. The
Peek & Cloppenburg, which has become the largest fashion retail
company has already signed two big leases - Rohde & Schwartz
shop in Transylvania with an area of more than 3,500 sqm. Also
Topex and Sodexo – totaling more than 11,000 sqm in one of the two
as premieres for the region we have opened Zara Home and Oysho
new myhive buildings that will
(part of Inditex Group) as well
open this year. “Today, office
as Pepe Jeans, Skechers, ACBC,
buildings have to be sustain-
and Nespresso. Moreover,
able, have a modern design
several other brands that were
and provide diverse services
already present in VIVO! Cluj-
to fulfill their tenants’ needs
Napoca have reopened their
while also contributing to their
stores under new concepts,”
general comfort. This is also
she says. The refurbishment of a sub-
IMMOFINANZ’s major focus. With the myhive experience
stantial part of VIVO! Cluj-Na-
including hotel atmosphere
poca has practically placed the
and community building, we
city on the international retail
are constantly striving to keep
map. The mix of new famous
up with our clients’ constantly
fashion brands and new store
changing needs and demands,”
concepts, plus the entertain-
says the IMMOFINANZ Roma-
ment, leisure and family areas
nia representative.
have generated very good footfall numbers for the company ever since the reopening at the
A 360-DEGREE RETAIL EXPERIENCE
end of 2019. “Currently, we
Due to a very high-paced contemporary way of life, it is paramount
are prospecting the market and gathering data in order to be able to
for developers to offer people in their shopping centres a 360-degree
provide our customers with a better shopping experience in all our
experience. Therefore, retail spaces have been focusing on doubling
Romanian VIVO! shopping centres,” says Dinu.
down on shoppers’ experience, with shopping centres offering not just a great entertainment opportunity but also striving to be pillars
Speaking about how the company adapts its retail concepts to Romania, so that they can meet both current and future standards
of their communities by of-
in the sector, Dinu says that
fering support and resources
considering that the world is
for cultural, educational, and
rapidly digitalizing, it is neces-
social activities. As a result,
sary for everyone to adapt to
IMMOFINANZ focuses on good
this global trend. Technological
quality experiences supple-
developments heavily impact
mented by leisure places,
consumer behaviour and
children’s playgrounds, and
therefore customers’ desires
family areas. At the same time,
are becoming more and more
the company carefully moni-
sophisticated and moving from
tors consumer trends on both
providing a product to offering
the international and the local
a service or an experience.
markets, and it continuously
“As a retail landlord, IMMOFI-
seeks to update and adopt
NANZ is very much focused on
them. “Our VIVO! shopping
creating good quality experi-
centers are fully rented and we
ences that are supplemented
continuously register foot-
by leisure places, children’s
fall increases,” Dinu adds. In
playgrounds, and family areas. Based on the diversity of ser-
Romania, the company is now in full process of evaluating its retail portfolio, in order to further
vices provided, our VIVO! shopping centres have become real hubs
upgrade the VIVO! shopping centers.
for the communities they serve. And it is our goal to support the
Furthermore, at the end of 2019, the company finished a mod-
development of the communities we are part of,” she says.
ernisation process and re-opened VIVO! Cluj-Napoca as an ultramodern shopping and leisure space. “In the newly-refurbished
AN INTERNATIONAL PERSPECTIVE
shopping centre we have launched new and famous brands such as
According to the data provided by IMMOFINANZ, the company’s
www.business-review.eu Business Review | March 2020
COVER STORY 13
overall property portfolio included 216 properties as of September 30, 2019, with a combined value of roughly EUR 5.1 billion. They are mostly located in the core markets of Austria, Romania, Germany, Poland, Czech Republic, Slovakia, and Hungary. “Following the reorientation of our portfolio in recent years, IMMOFINANZ has successfully returned to a growth course. Our latest acquisitions in the office and retail sectors combined with major completions have strengthened our sustainable earning power and grown our property portfolio more than five billion Euro”, comments Oliver Schumy, CEO of IMMOFINANZ. He also points to the financial stability of the group: “We have received an investment grade rating from S&P at the beginning of 2019 and, as a result, joined a very exclusive club.” “In the office segment, we have 58 standing investments totaling approximately EUR 3 billion in capital cities of our core countries and larger German cities. They have 1.08 sqm of rentable space,”
IMMOFINANZ portfolio MY HIVE OFFICES FURTHER MYHIVE LOCATIONS UNDER DEVELOPMENT IN VIENNA, DUSSELDORF AND BUCHAREST – GREATER FLEXIBILITY FOR TENANTS WITH MYHIVE 2.0.
says Oliver Schumy, CEO of IMMOFINANZ . The company owns
24 properties in 6 countries
office properties in the capital cities of Austria, Romania, Germany,
Rentable space
579,920 sqm
Poland, the Czech Republic, Slovakia, and Hungary, plus some in
Occupancy rate
94.2%
Dusseldorf, Germany. According to him, Romania belongs to the company’s core markets and accounts for about 15 percent of its overall portfolio volume. Schumy adds that in the retail sector, the company has 100 properties with a total value of more than EUR 1.6 billion. “There are 90 STOP SHOP retail parks and 10 VIVO! shopping centres. The largest regional markets in the retail segment are Romania, Poland, and Slovakia.” In a next growth step the company will extend its STOP
STOP SHOP RETAIL PARKS POSITIONED AS LEADING RETAIL PARK OPERATOR IN EUROPE – FURTHER GROWTH TO APPROX. 100 LOCATIONS THROUGH ACQUISITIONS AND DEVELOPMENTS.
SHOP network to around 100 locations, the CEO adds.
88 properties in 9 countries A RESPONSIBLE APPROACH: CARING FOR THE ENVIRONMENT…
Rentable space
635,494 sqm
IMMOFINANZ is committed to the responsible use of natural
Occupancy rate
97.6%
resources, the use of climate-friendly technologies, a systematic energy-saving strategy, the refurbishment of building elements which are worth preserving and the construction of efficient new buildings. These central points reduce operating costs and emissions and also make an important contribution to environmental protection and tenant satisfaction. Corporate goals include the steady reduction of energy consumption as well as an increase in the energy efficiency of the
VIVO SHOPPING CENTER CONVENIENT SHOPPING WITH ENTERTAINMENT FACTOR. EUROPE’S BEST RETAIL BRANDS AS STRONG ANCHOR TENANTS.
standing investment portfolio. Prior to the start of new activities or
10 properties in 4 countries
projects, the environmental impact is estimated and the results are
Rentable space
311,161 sqm
integrated into the decision process. Plans also include the gradual
Occupancy rate
92.4%
expansion of sustainability certifications for development projects and standing investments. These certifications reduce environmental risks and contribute to an environmentally-friendly use of space and an increase in efficiency.
…. AND EMPLOYEES IMMOFINANZ employees’ expertise and commitment are key
…. TOWARDS TENANTS AND CUSTOMERS….
requirements for the company’s long-term success. Numerous
The satisfaction of IMMOFINANZ’s tenants is an essential factor for
activities in the area of human resources create an environment in
achieving and maintaining high occupancy levels and strong tenant
which talents can optimally develop and where cooperation is pro-
loyalty. This, in turn, is a guarantee for efficient property manage-
moted at all levels. These activities are particularly directed towards
ment. Tenant loyalty through high customer satisfaction and the
underscoring IMMOFINANZ’s attractiveness as an employer and to
acquisition of new tenants therefore represent strategic goals.
retaining and further developing employees.
14 MAIN STORY
ROMANIA’S STAR SECTORS IN 2020 With a very dynamic global business environment, the Romanian economy is already adjusting to the new economic context, as growth settled to around 4 percent in 2019 from 4.4 percent in 2018 and 7.1 percent in 2017. With local elections coming soon, 2020 will be a challenging year for businesses. Still, there are some sectors which have registered robust development lately and thus have the potential to shine this year. Let’s meet the stars of the local economy in 2020! By Aurel Constantin, Sorin Melenciuc, Anda Sebesi, Claudiu Vrinceanu
www.business-review.eu Business Review | March 2020
www.business-review.eu Business Review | March 2020
MAIN STORY 15
Real estate sector could exceed EUR 1 billion this year 2020 is expected to be the best year in the post-crisis cycle for the real estate investment market in Romania, after total investments worth EUR 644 million in 2019. Deals worth at least EUR 600 million could be finalised this year in the office segment alone, which will be the star of the real estate investment market, according to the annual report released by Colliers International.
W
By Anda Sebesi
ith some of the high-
Colliers International data.
est investment yields
“The development of office
in Europe and given
buildings has not yet reached the
the volume of over half a billion
maximum of its potential; there
euros’ worth of transactions either
are many companies which are
secured or in advanced nego-
continuously growing their teams,
tiation, the volume of real estate
which is why they’ve become
investments is expected to exceed
interested in finding office spaces
EUR 1 billion in 2020, Colliers
near residential areas to ensure
International consultants predict.
easier transit for employees from
Going forward, interest migrating
their workplaces to their homes.
from pure class A office buildings
In addition, developers have
to those with a value-added angle
understood that in order to lease
or reconversions are trends to
their projects have to include both
monitor in 2020. The hotel sector
functional spaces for businesses as
is expected to be active as well,
well as areas where employees can
supported by international brands
relax and spend time. Real estate
that want to expand at a robust pace for several years to come, based
now means more than developing good looking buildings and using
on current plans.
new technologies; it’s also about creating communities,” Panait adds.
At Central and Eastern Europe (CEE) level, the Romanian market
Retail transactions represented nearly 24 percent of total volumes
last year attracted almost 7 percent of the total investment volume
in 2019, according to the same data. The largest transaction, worth
of about EUR 13.4 billion. Poland remained the leader in the region,
EUR 113 million, was made by MAS Real Estate for 8 retail projects it
with investment volumes accounting for 55 percent of the overall
had developed together with Prime Kapital. Another important deal
CEE6 total, at a record-breaking figure of about EUR 7.4 billion.
was closed by Indotek Group, which purchased Promenada Targu
Speaking about how Romania compares with other countries in the region, Antoniu Panait, Managing Partner at Vastint Romania,
Mures for an estimated EUR 40 million. The same source says that the industrial sector had a more mod-
says: “Romania has the potential to become a regional leader in
est performance in 2019, accounting for less than 10 percent of the
terms of the real estate industry as well as multiple other sectors, as
preliminary figures, with CTP’s purchase of A1 Bucharest Park for
we have all seen the great number of companies that have relocated
around EUR 40 million as the year’s biggest transaction. In fact, the
their headquarters to our country or have started a new branch here,
local industrial and logistics spaces market had the highest yields in
along with startups that have grown extremely quickly. Therefore,
the region, of up to 8.25 percent, compared to 6.5 percent in Warsaw,
the real estate industry will continue to evolve and explore its true
7 percent in Budapest or 5.25 percent in Prague.
potential if business is done well,” says Panait. Last year, the office market attracted more than 60 percent of real
“We have a dynamic real estate market in which companies will continue to focus on office buildings in order to find the perfect place
estate investments, with Bucharest and Cluj-Napoca being the most
for thei employees, near public transportation, while employees will
dynamic cities. The year’s biggest deal was the sale of The Office by
be searching for residential areas that offer them not just a functional
NEPI Rockcastle and local developer Ovidiu Sandor to Romanian-
space to live in but also the possibility to spend quality time in the
owned DIY chain Dedeman, for roughly EUR 130 mln, according to
surrounding areas,” concludes Panait.
www.business-review.eu Business Review | March 2020
16 MAIN STORY
New legislation and economic growth to boost revenues of local private healthcare providers The private healthcare sector is already flourishing in Romania, but new regulations and coronavirus pandemic fears could boost its revenues and earnings in 2020. By Sorin Melenciuc PRIVATE HEALTHCARE-FRIENDLY NEW REGULATIONS
AGEING POPULATION
This year, Romania started a major
businesses will certainly be related
reform of its much-criticised health
to Romania’s rapidly ageing popula-
system, favouring private hospitals,
tion. According to a recent ING report,
which are now allowed to treat patients
Belgium and Romania’s potential for
through the national curative health-
elderly care and support, projected un-
care programmes along with public
til 2030, will be the highest in Europe.
hospitals. These new regulations could
“When it comes to paying for care and
boost activity in private hospitals as the
household support, it is most common
predictable outcomes of the new law
that elderly people in Romania, Italy,
will be a transfer of some patients from
Spain and Poland pay their care and
public to private hospitals.
household support largely by them-
At the same time, emergency proce-
Another boost for private healthcare
selves,” the report says.
dures in private hospitals will now be
Home support services, includ-
reimbursed at a fair cost by the Health
ing healthcare, can be essential for an
Ministry, a measure that can also bring
independent elderly life. Some private
more patients and additional revenues
providers are already investing in
to private healthcare providers across the country. In terms of busi-
this type of healthcare services and the market will certainly grow
ness, large private healthcare services providers such as MedLife,
quickly during the next decade.
Regina Maria, Sanador, Gral Medical, Monza, Medsana or Medicover will be among the major beneficiaries of the new regulations. Romania currently has more than 100 private hospitals and clinics
HEALTH-RELATED TECH BUSINESSES But the boost in private healthcare businesses expected this year
and new projects are being developed as the new reimbursement
is not contained to private hospitals in Romania. During the last
regulations favour treatments in local private hospitals, which can
few years, tech startups and IT firms have developed many health-
attract the patients who have previously preferred to pursue com-
related businesses and apps. Cluj-based IT developer Life is Hard
plex treatments abroad.
has recently launched a medical second-opinion app called Doxtar, allowing patients to get virtual consultations from real doctors.
CORONAVIRUS EFFECT
Another example is SanoPass, a Romanian startup founded in 2019,
Another factor that could trigger higher demand for private health-
which addresses companies and issues preventive medical subscrip-
care services in Romania is the new coronavirus, known technically
tions offered by employers as benefits for employees at over 500
as SARS-CoV-2, which causes the COVID-19 disease.The new virus
independent clinics and medical offices.
has been spreading around the world and can cause a respiratory
“In 2020 we’re seeing access to medical services being democ-
illness that can be severe, and experts say that it is only a matter of
ratised, and independent medical offices are also growing due to
time before the new epidemic reaches Romania.
innovations and technological platforms. Subscriber employees
In fact, many experts warn that COVID-19 is here to stay. The
can make appointments in any partner medical clinics, having full
emerging consensus among American epidemiologists is that the
freedom to choose depending on proximity or personal preferences,”
most likely outcome of this outbreak is a new seasonal disease - an
SanoPass representatives told Business Review. According to the
“endemic” coronavirus. This means that “cold and flu season” could
company, a subscription to the SanoPass platform provides software
become “cold, flu and COVID-19 season.” Harvard epidemiology
for consultations or investigations, regardless of the medical spe-
professor Marc Lipsitch predicts that within the coming year, some
cialty, in a maximum of 48 hours. Through the app, employees can
40 to 70 percent of people around the world will be infected with the
talk to a qualified nurse and then to a specialist doctor who can solve
new virus.
the medical problem, offering a diagnosis and a treatment plan.
www.business-review.eu Business Review | March 2020
MAIN STORY 17
Entertainment & wellness facilities in high demand around Romania’s big cities Years of double-digit wage growth and poor infrastructure have stimulated the growth of new businesses in rapidly-developing Romania, and demand for entertainment and wellness facilities is booming, especially in the proximity of large urban areas.
I
By Sorin Melenciuc
f you’re thinking of visiting
4,000 visitors at a time. It is split
Therme, one of the biggest
into three zones: The Palms (for
thermal water wellness cen-
relaxation), Elysium (wellness)
tres in Europe, located some 20 ki-
and Galaxy (the family area that
lometres north of Bucharest, you’ll
includes a playground). The
have to be prepared to wait in a
investment has already proven
long queue to get in, as thousands
successful. Within less than a year
of people living in or around the
from its official opening, Therme
capital city choose to spend their
Bucharest expanded its Galaxy
time here on any given weekend.
area by 4,000 sqm, following an
The same phenomenon can be
investment of EUR 10 million.
observed every weekend for
The expansion was carried out
similar attractions near other big
earlier than initially planned due
cities such as Cluj or Timisoara,
to the unexpected success the
where large and expanding middle
centre had right after opening,
classes have benefited from the
according to Therme representa-
recent economic growth and have
tives. “Romanians were very open
rapidly gained higher purchasing
to the new relaxation, wellness
power over the past few years.
and fun opportunities at Therme Bucharest. Expansion was a natural step due to our visitors in the
TRAVEL ORDEAL
Galaxy area,” said Stelian Iacob, general manager of Therme Bucha-
One of the major causes of this situation is poor infrastructure,
rest. According to the company, three million Romanians and one
generating difficulties when it comes to moving around the country.
million foreign tourists have visited Therme Bucharest in the four
Visiting popular tourist attractions such as the mountain resorts
years since the centre opened. Other tourism investments close to
on Valea Prahovei has become an awful ordeal for Romanians, as
the capital city have proven fruitful as well, as Bucharest inhabit-
a 120-km trip from Bucharest to Sinaia takes five or six hours on
ants have had increasing difficulty in visiting resorts like Comana
average and requires a lot of patience. This problem has boosted
(30 km south of Bucharest) due to heavy traffic and insufficient
one particular type of tourism in Romania: short-distance tourism,
parking capacity.
based on the proverb “If the mountain won’t come to Muhammad, then Muhammad must go to the mountain”. Some tourism entrepreneurs have speculated this reality and
HUGE POTENTIAL This reality suggests that there is a huge potential for investment
have moved their investments closer to clients, inside or around
in quality entertainment, relaxation, health and wellness facili-
big cities. Someone living in Bucharest can now visit several local at-
ties located in or near large urban areas in Romania. According to a
tractions without doing much travelling, but the long queues prove
recent A.T. Kearney report, the Romanian health & fitness market
that there is already a need for more such facilities.
will reach a total value of EUR 360–380 million by 2023, up 45–55 percent versus 2018. Another connected market is the spa segment,
EASY MONEY
which is still at a low level in Romania. There are a few dozen spa
Austrian group A-HEAT has invested around EUR 30 million in
centres across the country, especially in hotels, and some day spa
Therme Bucharest, the wellness center mentioned above, which
centers. In 2017, Romania’s spa market figure was around EUR 24
opened in January 2016. The facility has an outdoor area of over
million, of which EUR 15.6 million in spa access (pool areas, saunas
250,000 sqm and an indoor area of 30,000 sqm, and it can host
and other spa facilities) and 8.8 million in spa treatments.
www.business-review.eu Business Review | March 2020
18 MAIN STORY
New investments in HoReCa market this year Automation, an increasing role for technology, a lack of human resources, development of the sector through new investments and a growing delivery segment are among the most important trends forecast by Romanian managers and entrepreneurs as well as specialists of the Hospitality Culture Institute, an independent research, training, and consultancy institute studying the HoReCa market. By Claudiu Vrinceanu TREND: AUTOMATION
market in 2020, we could talk
2020 may not have a single domi-
about development. This year will bring a series of
nating trend, but it will set some directions that will revolutionise
new investments, in new ho-
the hospitality industry. In terms
tels (at least 40 units are in the
of technology, automation is be-
pipeline for 2020 and 2021), in res-
coming increasingly popular in the
taurants or event centres, leisure
industry, from the implementation
centres or spa areas, according
of CRM and chatbots in companies
to FIHR president Calin Ilie. This
that operate locations to online
development comes after years of
platforms and e-markets for Ho-
increased performance in tourism,
ReCa customers or suppliers, says
as a result of good tourism taxa-
Cristian Cristea, Business Develop-
tion, and represents consistent
ment Director HoReCa Macromex.
investments made by both exist-
The role of online communities
ing investors (who are expanding
and personalised experiences
or upgrading their businesses), as well as some new investors com-
will also increase: each client will want to share their experience interacting with a relevant brand that resonates with them. Sustainability - a concept that until recently had only been
ing from other sectors to test the HoReCa market. As for the stage of the hotel industry in 2020, it is like a crusade: investors are constantly conquering buildings and turning them
embraced by large corporations - is gaining ground in the hospitality
into hotels and resorts. “Romania is slowly becoming an interesting
industry. According to the Hospitality Culture Institute, we will talk
European destination, especially because we have the unique ad-
and act more and more on topics like the elimination of plastic or
vantage of mixing the natural ecosystem with the latest technology.
the reduction of waste and pollution.
Compared to other countries in Europe, we and the Bulgarians have the lowest prices and have a huge potential all year round. Demand
TEAMWORK AND PROFESSIONAL NETWORKING: PRIORITIES FOR HORECA SPECIALISTS
exceeds supply in high seasons and we have different high seasons
Teamwork on joint projects in the industry is among the most
shape, but private investments are on their way,” says Octavian Mol-
important trends of the moment. Isolating yourself in individualism
dovan, general manager at Suter Palace Heritage Boutique Hotel.
depending on the area. There are still many resorts in pretty bad
in 2020 is no longer a productive solution. “Due to the acute lack of human resources, professional networking is no longer a nuisance,
GROWING DELIVERY MARKET
and it becomes a common source of resources, essential in achiev-
“If I were to think of a booming trend in 2020, I think it will be in the
ing the objectives of any professional in the industry,” says Lauren-
delivery area, as we live in an age when time has become extremely
tiu Mata, regional director of the National Association of Cooks and
limited and we can no longer take the classic long coffee or lunch
Confectioners in Tourism (ANBCT).
breaks during the day,” says Vasi Andreica, the founder of TED’S Coffee. This industry will explode, with existing platforms targeting
2020 - A YEAR OF INVESTMENTS
other product groups besides those currently being delivered, and
If we wanted to address the most significant trend on the HoReCa
new players will appear in the field.
www.business-review.eu Business Review | March 2020
MAIN STORY 19
Fintech companies on rapid growth path The fintech industry is one of the most disruptive sectors and it will change the way consumers use money and banks. The services provided by fintechs are mostly new and yet to be regulated, and their synergy with banks will see the sector thriving during the coming years.
T
By Aurel Constantin
he last decade has seen a
ing round. “Our mission is to build
surge in the number of fin-
a global financial platform - a
tech startups, using tech-
single application through which
nology to make it easier for people
our users can manage their entire
to make payments, transfer money
financial lives. The next step for
or exchange foreign currencies.
us is launching banking operations
These innovative platforms have
in Europe, increasing the number
not only eaten away at the monop-
of users who use the app daily and
oly of banks and other established
achieving profitability,” said Nik
financial players, but they’ve also
Storonsky, the founder and CEO of
allowed customers to take greater
Revolut.
control of their finances.
This year Romanians will also
The global fintech personal
have access to Monese and Pay-
finance industry is expected to be
sera, two fintechs that will cover
worth USD 1.5 trillion this year, ac-
both personal finance as well as
cording to data gathered by Learn-
corporate needs. They will join a
Bonds.com, growing by a massive
scene that already includes about
45.1 percent year-on-year. This bullish trend is set to continue over
40 fintechs, with companies like Pago, beez, mobilPay or Volt hav-
the coming years, with personal finance transactions set to come in
ing established a presence in Romania.
at almost USD 2.7 trillion by 2023. In 2017, personal fintech transactions hit USD 291 billion in value,
Investments in Romanian Artificial Intelligence (AI) start-ups will reach EUR 50 million in 2025, according to estimates by manage-
according to Statista data. Since then, the market value has had a
ment consulting company Horvath & Partners. The level of invest-
fivefold growth, jumping to USD 1.5 trillion globally.
ments in AI start-ups in the last quarter of 2019 placed Romania
The number of users in this sector of the fintech market is fore-
near the top of the ranking of countries of Eastern Europe, behind
cast to hit 79 million this year, growing by 49.5 percent compared to
Hungary, Russia, and Poland, but ahead of the Czech Republic, Slo-
2019. Over the next three years, the number of people using fintech
venia or Slovakia. In the last three months of last year, investments
personal transactions is expected to almost double and jump to 147
in AI start-ups in Romania amounted to around EUR 20 million.
million worldwide.
Most of the investments went into two fintech start-ups: FintechOS
Investing through online platforms, known as robo-advisors, is the largest part of this sector and is expected to top USD 2.5 trillion
and TypingDNA. TypingDNA, a startup developing online security solutions based
giving it a 94 percent share of the fintech personal finance market by
on behavioral biometrics, founded in Oradea, received a funding of
2023. The robo-advisory market grew out of the 2008 financial crisis
USD 7 million, while FintechOS, a Romanian startup doing auto-
as small investors looked for wealth managers who charged lower
mated financial technology, received EUR 12.4 million. “We think
fees, amid historically low interest rates on savings.
that the period of extraordinary effervescence on the digitization segment, which we are currently going through, will intensify in the
ROMANIA AMONG FINTECH AFICIONADOS
next decade. GDP growth generated by AI and Machine Learning in
In Romania, the most popular fintech is Revolut, a platform that has
Europe will amount to EUR 1.5-2 trillion over the next 10 years,” said
reached almost 1 million customers in our country. Recently, the
Kurt Weber, the general manager of Horvath & Partners Romania. It
fintech was valued at USD 5.5 billion after a USD 500 million financ-
is safe to say that the best is yet to come for the fintech industry.
www.business-review.eu Business Review | March 2020
20 MAIN STORY
Investors eyeing local software industry For the software industry, 2020 means an increase in revenues generated by IT companies, the growth of the startup ecosystem, and the expansion of Romanian companies abroad. At the same time, software robots and automation will continue to appear in the business environment at a rapid pace, we will see new players entering the market and, at the same time, uncertainty about the tax facilities granted to employees in the IT industry will continue.
T
By Claudiu Vrinceanu
he software and
continue their internationali-
services industry will
sation process: Connections
grow steadily in 2020,
Consult, which specialises in
in terms of both revenue and
automation, software develop-
number of employees, despite
ment and IT outsourcing, will
the fiscal and political unpre-
continue its expansion into
dictability that dominates the
international markets (Middle
local landscape. Overall, the
East, South-East), DocProcess,
local software market will grow
a company that has attracted
by about 10 percent in 2020
Morphosis Capital among its
and reach 6.6 billion euros.
shareholders, is developing on
However, strictly based on
the French market, while Dru-
the evolution of Romanian IT
id, the startup that sells virtual
companies, estimates show a
assistants and was launched by
continued stagnation of their
the founder of Totalsoft, plans
incomes.
to open an office in the US.
From the fiscal point of
According to ANIS, IT services
view, we will see many discus-
that go abroad represent 19
sions about the tax facilities in
percent of Romania’s total
the IT field, including the idea of eliminating them. In recent years, fiscal facilities have stimulated foreign investments and have kept
exports in 2019, up 17 percent from 2018 and 15 percent from 2017. Another general trend for 2020 will be the fact that software
the Romanian IT industry competitive, in a race for investments
robots and automation will continue to appear in the business
with other countries that offer software developers zero income tax,
environment at a rapid pace. Software robots will not succeed in
such as Ukraine, Poland or Belarus. The deficit of IT workforce at
replacing people, but more and more companies are investing in
the EU level is so great that an elimination of fiscal facilities could
this area. A striking example, of course, is UiPath, but we are see-
result in a massive reduction of specialists in the country, so a major
ing more Romanian companies developing such solutions, such as
economic impact on inbound investments (FDI).
MissionCritical, a local startup that has developed its own Robotic
In order for this sector to maintain the same growth rate, IT companies recommend continued public and private investments and initiatives in strategic areas such as education and innovation,
Process Automation (RPA) platform for clients in the hotel industry, startup developing reusable software robots. The software industry will remain interesting for investors who
aimed at supporting the medium and long term development of lo-
are active in the mergers and acquisitions market. “The technology
cal software and services industry.
sector has expanded and attracted significant investors over the
As an important trend in 2020, we will see the organic growth
last ten years, and this upward trend will continue in the future.
of local companies in a constantly changing global market, which
Romania is an attractive market for the IT industry, due to the high
brings both strategic and operational challenges. Entering new
number of software service providers and the growing number of
markets involves challenges related to cultural differences, but also
accredited IT specialists,� say KPMG experts. Along with health and
to the speed of absorption of the progress generated by technology
energy, technology is considered to be one of the most attractive
companies. Just a few examples of software companies that will
sectors for investors in the upcoming period.
www.business-review.eu Business Review | March 2020
MAIN STORY 21
Green Deal and Black Sea gas are 2020’s hot topics The Romanian energy sector faces two major challenges in 2020: Black Sea natural gas exploitation and the European Green Deal, which among other things means cutting back on the use of coal in electricity production.
R
By Aurel Constantin
omania sits on a
GREEN DEAL AND COAL
natural gas reserve
The European Union has pro-
estimated at 270 billion
posed a Green Deal that would
cubic meters, located in the wa-
reduce carbon dioxide emis-
ters of the Black Sea. But taking
sions by 55 percent by 2030
them out is no easy feat, espe-
and get to net zero emissions
cially when legislative changes
by 2050.
put the companies involved at
For Romania, the Green
a disadvantage. ExxonMobil,
Deal means heavily reduc-
one of the most experienced
ing its use of coal to produce
companies in the world on off-
electric power.
shore exploitation, has decided
Today, about 25 percent of
to quit the consortium that
Romania’s electricity comes
also included OMV Petrom for
from coal-powered plants.
the Neptun deep water sector,
It is quite a good number
estimated to have between 42
considering that less than 10
and 84 billion cubic meters of
years ago coal accounted for
natural gas, the equivalent of
45-50 percent of all electricity
Romania’s consumption for 4
production.
to 7 years. Exxon was not happy with Government Ordinance 114/2018,
To lower our carbon dioxide (CO2) emissions, we should replace coal plants with natural gas
and even though it has invested around USD 700 million in the
units, which are much cleaner. In order to reduce CO2 emissions by
project, it said that it would leave if the law isn’t changed. The OUG
45 percent by 2026, we should replace 1,350 MW of coal-produced
caps gas prices and sets a 2 percent tax on revenues, meaning the
power with 1,450 MW in natural gas production along with a few
private companies’ profits would be heavily reduced. The company’s
solar parks.
decision was also helped by the discovery of natural gas reserves in Cyprus, as it may focus on that exploitation instead. Exxon’s possible departure doesn’t mean Romania should stop extracting gas from the Black Sea. “If Exxon wants to leave, I still want Romania to be part of the consortium,” says Virgil Popescu, the
“We will ensure that by 2030, we’ll have a 50 percent reduction in CO2 emissions from coal electricity generation,” Popescu stated. For that to happen, we need the natural gas that lies at the bottom of the Black Sea. The gas will be needed for household heating purposes. Today,
Economy, Energy and Business Environment minister. “Romgaz’s
only 35 percent of Romanian households are connected to a gas
Board of Directors has approved the company’s involvement in the
distribution line, while in countries like Hungary this share stands
Neptun project and negotiations are underway.”
at 90 percent.
But a legislative change is still necessary for gas exploitations, and
Romania should negotiate for a financing line that reaches a total
it can only be passed by the Parliament based on the will of the main
of EUR 10 billion for the coming years for gas distribution, replacing
political parties, which are not very interested in this law ahead of
coal power plants and enhancing renewable power plants.
two major election rounds.
Nothing has been done so far, meaning there is no long-term plan
Until then, the minister said that the first natural gas extracted
for the energy industry that could actually get us this money from
from the Black Sea would get to shore in 2021-2022, coming from the
the European Union. There is still time, but negotiations are taking
Midia perimeter.
place in Brussels with all the countries in the EU.
www.business-review.eu Business Review | March 2020
22 MAIN STORY
5G network awaiting auction in start position 5G networks are set to expand rapidly in 2020, at least in North America, Asia, and western Europe. We will find out soon whether Romania can keep up with the rest of the world. Apart from the 5G spectrum frequencies auction, Romanian authorities must still make a decision around Huawei’s involvement.
5
By Aurel Constantin
G networks should roll out
the EU member states’ examples and
this year, but there are clouds
allow Huawei to install 5G transmit-
all over the industry. While
ters - not as the sole producer, but
unexpected problems like the
together with companies like Erics-
coronavirus outbreak have had an
son, Nokia or Samsung. Romania is
impact, there are also security issues
still one the first countries to deploy
regarding equipment producers’
commercial 5G connections, but the
ownership rights, especially for Hua-
network is far from being built.
wei and ZTE, the Chinese produc-
Vodafone, Orange, Digi, and Tele-
ers of 5G transmitters. Last but not
kom are waiting for new frequen-
least, everybody is waiting for the
cies and the related auction. Once
European Union’s auctions for 5G
they learn how much the license for
frequencies, where the guidelines
using the frequencies will cost, the
from the European Commission are
operators will be able to calculate
still pending. The European Commission has laid out its recommendations for member states regarding possible security risks coming from the
the investments needed for 5G. The auction will have to be held in the first half of this year, regardless of the political instability.
new technology. The objectives of the 5G “toolbox” are to identify a common set of measures that can mitigate the main cybersecurity
5G TO ACCELERATE IN COMING YEARS
risks and provide guidance at both the national and Union level.
By 2023, 45 percent of all internet-connected devices will have a
Among the risks identified are: dependency on any single sup-
mobile connection, while 55 percent will be connected through
plier or lack of diversity on a nation-wide basis, state interference
cable or Wi-Fi, according to the Cisco Visual Networking Index
through the 5G supply chain and exploitation of 5G networks by
report. 5G connections will account for 10.6 percent of all mobile
organised crime groups targeting end-users.
connections, compared to 0 percent in 2018.
But the EC has not named any particular companies that should
The average speed of a 5G connection in 2023 will be 575 mega-
not be allowed to participate in the construction of the networks.
bytes per second (Mbps), 13 times higher than today’s average. We
Therefore, each country must decide whether to ban Chinese mak-
can already see download speeds above 575 Mbps in Romania, in
ers. So far, there are no countries stopping Huawei or ZTE from tak-
areas where 5G has been deployed - some parts of Bucharest, Cluj
ing part of their 5G networks. Huawei has already signed contracts
or Brasov. “Our research shows continued growth in the number
in the United Kingdom, South Korea, France, Switzerland, and Fin-
of internet users, devices, and connections and a greater pressure
land. Austria, Belgium, France, Germany, Hungary, Italy, and Poland
on networks that we had imagined,” said Roland Acra, senior vice
have already decided that Huawei could play a role in the making of
president and chief technology officer at Cisco.
their 5G networks, but with some limitations; for example, Huawei
But the main impact should be on the business side, where the
will not be allowed to provide equipment in sensitive sectors in
network will allow connections on a massive scale, transforming
France, such as military areas.
the way we live and work. Autonomous vehicles, automation in industries, and smart factories will be able to transform manufactur-
ROMANIA IS LAGGING BEHIND
ing, making them more efficient. Machine-to-machine connections
Our country has not yet decided whether any producers would be
(M2M), which will enable most IoT apps, will account for 50 percent
banned from participating in the process. We will most likely follow
or 14.7 billion of all devices and global connections.
www.business-review.eu Business Review | March 2020
MAIN STORY 23
Emerging technologies to change the world as we know it Digitalization is already taking place in our lives and changing the way we do business, but new technologies that are still to come, like 5G connectivity, Internet of Things and Artificial Intelligence, will have a significant impact on our lives. Business Review talked to Mihnea Radulescu, Enterprise Business Unit director at Vodafone and UPC Romania, to find out more about the impact technology will have in the future. By Aurel Constantin The digitalization of the economy is the most important transformation process happening today. Which new technologies will have the most significant impact on businesses and the economy in general?
How can new technologies help businesses grow?
Digitalization will indeed have a
experience (revenue growth).
significant impact on our day-to-
Some of our customers are really
day lives and on our economy in
playing in the top league in terms
general. There are several emerg-
of digitalization, monitoring and
ing technologies that I believe will
triggering different actions or
be game changers. One that we see
processes in their daily operations
claiming strong ground already is
by using IoT, for example. I can
RPA – robotic process automation
give you some relevant examples:
– which takes over repetitive tasks
Mega Image, a clear IoT case in
from humans and transfers them
retail, and OMV, a highly complex
New technologies support growth acceleration for companies by making them more efficient (cost cutting) or exploring new and innovative ways to enrich customer
implementation of the latest tech-
to so-called robots. The second is IoT (Internet of Things), which aims to put together an ecosystem of
nologies in an E2E oil and gas company.
devices and intelligent platforms to provide insightful information and trigger specific actions. Combined with RPA for example, it will
What are Vodafone’s plans for the future?
be a powerful tool. Third is AI (Artificial Intelligence). We have seen
Ten years ago companies were talking about connecting people to
some extremely interesting demonstrations of its power, however
mobility, to technology. Today we are talking about ways to con-
the road ahead is still long, especially if we’re talking about gener-
nect assets, cars, people, “things” to the internet. One of the main
alised AI, which is unlikely to properly develop within the next ten
pillars of our strategy is to connect a significant number of “things”
years.
to the internet: fixed or mobile assets that analyse data in real time, solutions that talk to each other, sending and receiving data as well
What is the role of the communications industry in this process? How important is connectivity within digitalization?
as requests in real time. IoT now plays a key role in automation, it is
Our industry was the foundation of the early stages of digitalization.
become an advantage in a competitive market.Vodafone Romania
We should keep in mind that there can be no digitalization without
provides companies with Drive Net (in-car connectivity), as well as
devices and processes and programmes communicating with each
Fleet Management Systems to reduce fuel costs. Moreover, Vo-
other, which is basically what we now call the internet. We have
dafone Romania has launched the first NarrowBand IoT network
developed and changed our view on connectivity and we experience
with country-wide coverage in South-Eastern Europe. This launch
it in terms of availability and speed. Our future role is not just to be a
consolidates our leadership position on the IoT market solutions and
partner for digitalization companies, but to be one of them. In other
will offer our enterprise customers the chance to develop and imple-
words, the role of the telecommunications industry will continue to
ment a wide range of solutions and applications to improve their
be pivotal in the digitalization of our world.
business processes.
a differentiator in customer experience, but more importantly, it has
www.business-review.eu Business Review | March 2020
24 INTERVIEW
Online sales outperform stationary retail in sports goods market The consumer market is growing in Romania as the appetite for new stuff is still high. The same can be said about the sports goods market, with people looking to build healthier and more active lifestyles. Business Review talked to Catalin Pozdarie, general manager at Hervis Sports & Fashion Romania, to see how the sports goods market is developing and how online sales are changing the business. By Aurel Constantin The Romanian consumer market is growing, both in terms of purchasing power as well as interest for high quality items. How is this seen in the sports goods market? Has the average price of a pair of running shoes, for example, increased?
many other factors, have influenced our sales growth. 2019 was our best year, with a growth of 21 percent.
When we purchase sports goods, especially shoes, trying them on is very important. Do customers prefer to come to the store to try on items or are they willing to order several products online and then return what doesn’t fit?
The Romanian sports goods market is on
Online retail has flourished in recent years. How is this generally seen on the sports goods market?
an upward trend but, unfortunately, if we
Online retail is currently experiencing the
on articles as it is to research products online.
compare it to other countries in Europe, the
highest growth rate. To be successful as a
Our customers do not tend to order and
percentage of people practicing sports at least once a week remains the low-
store, we need to be where our customers are. And they are
For customers, it is equally important to try
return later, as they might do in other fields like fashion, for example. In Austria and
est, below 10 percent, even though
everywhere: they come to
Germany, customers order several sizes of
Romanians have begun to under-
the store to see the products
the same product and return those that don’t
stand the importance of exercising
and order online, they do
fit. But this is not a common phenomenon
in maintaining a healthy lifestyle
research about the products
in Romania, especially because it involves a
and the benefits of practicing it
online and then buy from
much greater financial power.
from an early age. In Northern
the store or they simply
countries, about 80 percent of the population over 15 years old engages in physical activity at least once a week. This means
see products online or in the store and buy them straight away. It is not a reci-
that there is still a
pe, but those
lot of potential in
who are the
How does the activity of a classic sports goods store change as a result of online sales? First of all, the mentality within the company has to adapt to the change generated by online sales. The same customer can either visit the store or order products online.
Romania. The aver-
quickest to
Their buying experience must be kept at the
age price for a pair
adapt to
same high-quality standards. Store employ-
of shoes has seen
market
ees must have online sales skills (“Digitaler
an insignificant
trends
Verkeufer”, as they say in German) to find
growth, below 1
are the
products that are in stock or suggest adjacent
percent. But the
winners.
products on any device, like a smartphone or
number of those who are starting to practice sports has
Online
a tablet.
sales recorded a 60 percent
tended to increase.
increase last
Is the online sales volume relevant to Hervis or is it more of a marketing activity?
This aspect, cor-
year. Such
If we compared it to stationary stores, at the
related with the ex-
growth is
moment, the online store has the best perfor-
panded offer and
only possible
mance. The sales volume is relevant and it is
a correct mix of
in the online
the only channel that can record such large
products, along
area.
increases from one year to the next.
www.business-review.eu Business Review | March 2020
26 EXPORTS
How export companies help the Romanian economy Exporting companies are important for the real economy and the banking sector, but the health of these companies that are exposed to foreign economies must be looked after in case of economic deterioration. By Claudiu Vrinceanu mania, businesses involved in foreign trade reported decreases in their profit margins and, to a greater extent than the average of respondents, indicated that they felt labour costs, credit costs and other costs were increasing. The results also indicated that importing companies considered competition to be a pressing problem to a greater extent than export companies did.
FACTORS BEHIND THE TRADE DEFICIT An important source of the trade deficit is the trade of agri-food products. The situation is based on the (largely structural) difficulties that agriculture and the local food industry face in covering the visible consumption gap of recent years. The automotive sector is dependent upon the development of transport infrastructure
E
Banca Transilvania (BT) estimates that between 2020 and 2022 there will be a mitiga-
conomic activity by Romanian compa-
area’s focus on the human factor and lower
tion of the gap between Romanian imports
nies carrying out foreign commercial
dependence on infrastructure may indicate
and exports as a result of internal economic
transactions with goods has grown in
a significant potential. Based on the incorpo-
policies and a depreciation of the leu.
the last year, despite an international macro-
rated technological level, between Septem-
economic framework marked by commercial
ber 2018 and June 2019, medium-high-tech
we expect to mitigate the gap between the
tensions. The sectors that contributed the
products accounted for 49 percent of exports
annual paces of exports and total imports
most to the favourable evolution of foreign
while high-tech products represented 6.6
(of goods and services) between 2020-2022
trade were manufacturing (82 percent of
percent, based on BNR figures.
due to the rebalancing of internal economic
“In BT’s central macroeconomic scenario,
policy (in particular through fiscal-budgetary
exports and 54 percent of imports) and trade (10.6 percent of exports and 38.5 percent of
2,700 NET EXPORTING COMPANIES
consolidation) and the depreciation of the
imports), according to the National Bank of
Romania’s external balance is dependent on a
real effective rate of the national currency.
Romania (BNR)’s latest Financial Stability
small number of companies, which together
Total exports and imports could increase at
Report.
hold a share of less than 1 percent in the
average annual rates of 5.5, respectively 6.9
total number of companies in the country.
percent between 2020-2022,” says Andrei
dustry that are involved in foreign trade, such
In mid-2019, there were 2,700 net exporting
Radulescu, BT’s chief economist.
as the automotive sector, are dependent upon
companies operating in the economy, while
the development of transport infrastructure
the number of net importing companies was
tions, 2019 was the worst year of the post-
and the provision of specialised workforce,
5,100.
crisis period for Romanian exports, having
The main players of the manufacturing in-
According to Romanian export associa-
marked the first time when the export growth
which highlights the importance of creating a proper environment for business devel-
OUTLOOK FOR EXPORTING COMPANIES
rate was lower than the GDP’s. The trade
opment. The software industry is another
According to a BNR Survey on access to
deficit reached about EUR 17 billion in 2019,
important sector in foreign trade, and this
finance for non-financial companies in Ro-
according to estimates.
www.business-review.eu Business Review | March May 2016 2020
COVER STORY TECH 27 14
Romania among the most attractive markets for US and UK tech companies Romania is among the 30 most favourable markets for US and UK tech firms, based on a wide range of factors, including the availability of skills, complexity of the regulatory landscape, quality of connectivity and infrastructure, GDP growth, and inward investment. By Claudiu Vrinceanu investors with only a few local Romanian funds able to participate in Series A+ rounds.
TOP PRIORITY FOR TECH FIRMS: ESTABLISHING PRESENCE IN A NEW COUNTRY A broader international footprint is less common for tech companies—only 20 percent of businesses have an international presence in four or fewer countries. Further, the share of firms with a widespread global presence is currently small—just 8 percent were active in over 14 different countries. This is set to change rapidly in the years ahead. For any growing business, establishing a presence in a new country is an exciting Bucharest is the main hub in Romania, driven by its strong digital workforce and diversity
R
time, but it can also be daunting and stressful. Given these challenges, Phil Dunne, head of
omania has been included on a list
companies. The survey revealed that 90 per-
international development for EMEA at Veloc-
of the world’s best markets for tech
cent of tech businesses across both countries
ity Global, argues that firms should be looking
companies in both the United States
were planning to expand to a new market
beyond the most obvious targets, as there are
of America and the United Kingdom. Inter-
within the coming years, and that access to
plenty of countries that are currently more at-
national business growth and development
new customers and talent were the key driv-
tractive to tech businesses looking to expand.
company Velocity Global ranked Romania
ers behind this.
He said: “Saudi Arabia, South Africa, Israel, Portugal, and Greece are all current examples
29th in its Global Expansion Tech Index,
EVOLUTION OF THE ROMANIAN TECH ECOSYSTEM
of places where government incentives are
After years of constant growth, 2019 set a new
tech talent, and we’re beginning to see more
tech companies and considers metrics like
milestone in the development of the Roma-
US and UK companies employing people in
regulation, knowledge, and growth, while the
nian tech startup ecosystem. It was growing
those places as a result.”
index lists the 50 best locations for inter-
up and attracting investors’ interest. Funding
national expansion. Countries were scored
of Romanian startups became more sustain-
nal barriers are the bureaucracy in Romania
according to a range of factors, including their
able and diversified. The pipeline of local and
and the lack of support from the government,
regulatory landscape, availability of skills,
international ventures is no longer driven by
according to a Romanian Business Leaders
and quality of infrastructure and connectiv-
a few small-sized companies in e-commerce
study. It seems that Romanian tech firms need
ity. Countries like Italy, India and Greece
and marketplaces, but rather shows a bal-
a very smooth transition within the target
followed Romania, and Europe was named
anced mix of innovative ideas in FinTech,
market, minimising risks and having more
the most desirable global destination. The top
Biometrics, Blockchain, Robotic Process
external support. One out of three Romanian
performing countries in the index were the
Automation and HR solutions, according to an
firms believe that they don’t have personal
Netherlands, the US, Hong Kong, Denmark,
EY report.
barriers within this process. However, those
which is part of a report on global expansion opportunities for the tech industry. The study examines the top markets for
having a dramatic effect in terms of retaining
For Romanian tech companies, the exter-
and Singapore, having scored highly on each
Bucharest is the main hub in Romania,
who did state their personal barriers men-
of these metrics. The research is based on the
driven by its strong digital workforce and di-
tioned the lack of connections and experi-
expansion ambitions of 1,000 US and UK tech
versity. Top funding is driven by international
ence/knowledge about the market.
www.business-review.eu Business Review | March 2020
28 PRIVATE EQUITY
Private equity in 2020: declining confidence versus the new year’s optimism Private equity activity will expand in 2020 and will maintain a robust level. Romania remains interesting for private equity funds, with some players opening offices in Bucharest, even though the confidence of private equity funds in Central Europe is at its lowest level of the last seven years and Romania has missed out on big international transactions over the last year. By Claudiu Vrinceanu markets in the region where deal volume declined, mainly the Czech Republic and Poland, overall deal value was up compared to 2018, indicating a growth in average deal size,” the study states. Despite this trend of optimism, Romania last year missed the biggest regional transactions closed in the CEE. Of the top 10 transactions made by private equity funds in the region in 2019, none involved Romania directly, but the local market was part of three regional deals. According to the Emerging Europe M&A Report, Romania was included in the sale of CME media group’s operations to Czech investment fund PPF Group, in Advent International’s acquisition of the regional operations of drug manufacturer Alvogen, and part of Vivendi’s takeover of M7 Group business in four countries, including Romania.
PRIVATE EQUITY CONFIDENCE AT SEVENYEAR LOW AS ECONOMY FACES UNCERTAINTY Central Europe’s private equity markets may be slowing down, according to the latIn Romania, private equity buyout activity reached a total of 22 deals in 2019
C
est Deloitte Central Europe Private Equity Confidence Survey, as nearly half of respondents (46 percent) expect the economy to
entral and Eastern Europe (CEE)
research platform focused on emerging
worsen over the coming months. Despite this
is a target market for international
markets.
concerning outlook, most CE economies are
and private equity investment, and
“On a country-by-country basis there are
growing 2-3 times faster than those in West-
Romania specifically could be interesting for
numerous positive signs. The region’s largest
ern Europe, with Poland expected to grow
investors, considering that the deal volume
markets, Russia and Turkey, produced an al-
at 3.5 percent and Romania at 3.1 percent in
increased by 10 percent last year, according
most similar number of deals as in 2018, while
2020, against 1 percent for the eurozone.
to the latest Emerging Europe M&A report
both Ukraine and Romania saw a substantial
by CMS, published together with EMIS, a
uptick in activity. In some of the more mature
Confidence among professionals in CE private equity houses has been declining
www.business-review.eu Business Review | March May 2016 2020
PRIVATE COVEREQUITY STORY 14 29
gradually for two years and has reached a
Partner at Deloitte Romania. Most of the 2019
remain active this year, however a decrease
seven-year low. Market activity, already slow
transactions involving PE firms in Romania
in value might occur, following a specific set
in 2019, may reduce further, with over a
were acquisitions, and business consultants
of circumstances in 2019, namely two large
quarter (27 percent) of respondents expecting
noticed that besides the deals concluded by
transactions.
it to decrease.
players who had been focusing on Romania
The proportion of deal-doers expecting to
for some time (Mezzanine Management’s
focus their efforts on new investments in the
investment in PetStar, Abris Capital’s acquisi-
HOW 2020 STARTED OUT FOR PRIVATE EQUITY FUNDS
coming months has been decreasing over the
tions of Global Technical Group and Dentotal
The first month of 2020 brought some public
last four years, from 73 percent in 2016, to 52
Protect, Innova’s acquisition of Optiplaza and
communications from two investment funds,
percent. As for deal sizes, the vast majority
Optical Network and MEP’s top-up acquisi-
Enterprise Investors and Abris Capital, from
of respondents (69 percent) expect them to
tions in Regina Maria), there were also new
which we can expect new transactions. The
remain the same.
funds that made their first acquisitions
same is expected from Morphosis Capital, a
locally: Highlander Partners’ investment in
private equity fund of 50 million euros, and
with high pricing stimulates the appetite for
Ares, Greenbridge Partners’ investment in
Equiliant Capital, the investment fund fi-
selling, with a quarter of respondents (25 per-
Rus Savitar, CEE PE’s investments in Flash
nanced entirely by Paval Holding, focused on
cent) planning to focus on this in the coming
Lighting Services, Brise Group and Farmavet-
investments in small and medium-sized com-
months. “As we speak, Romania seems to be a
Pasteur. In this last category, it is worth
panies. As for the first transactions in January
seller’s market; however, vendor price expec-
mentioning the first acquisition made by a
2020, Horizon Capital, one of the leading
tations may be at an inflection point as these
local Private Equity firm: Morphosis Capital’s
private equity fund managers in the region,
might fall further, with an unprecedented 48
investment in DocProcess and Blackstone
invested USD 7 million for a 6.8 percent stake
percent of our respondents expecting pricing
Group’s minority investment of EUR 175 mil-
in Purcari Wineries.
to further decline this year. However, we
lion in Superbet.
The cautious economic outlook combined
still notice a significant appetite for transac-
In Romania, private equity buyout activity
Meanwhile, investment platform ROCA, launched by CITR Group and several Roma-
tions in Romania from private equity funds,
continued to expand reaching a total of 22
nian investors, has been negotiating the sale
with most local players actively involved in
deals in 2019, versus 11 in 2018, and an esti-
of S-Karp, which does both retail and produc-
certain deals, especially on the buying side,”
mated value of almost EUR 2 billion. Invest-
tion, to Clujana, a Romanian brand with a
said Radu Dumitrescu, Transaction Support
ment bankers expect private equity firms to
history of over 100 years.
www.business-review.eu Business Review | March 2020
30 HEALTHCARE
Small but risky revolution in Romania’s healthcare system The new Liberal government has introduced some limited reforms in Romania’s tatty healthcare system, favouring private medical services providers, but critics say that the new measures are not necessarily going to help patients. By Sorin Melenciuc THE “LIBERALISATION” OF PUBLIC HEALTHCARE PROGRAMMES While the former Socialist government seemed to favour a gradual modernisation of the public healthcare system, by slightly increasing budgets, the new Liberal government has decided that some bolder changes were needed. An emergency ordinance approved by the government on February 4 put private hospitals in Romania on par with public hospitals when it comes to curative national healthcare programmes, with a total annual budget of around EUR 1.5 billion – including key programmes such as oncological and diabetes treatments and dialysis. Until now, private hospitals were only allowed to treat patients and be reimbursed within these programmes when the capacity of public hospitals was exceeded - and this Private healthcare providers will be included in the programmes based on the same conditions as public hospitals
R
was the case in some areas, meaning that private healthcare providers were sometimes included. But from now on, private healthcare
omania’s healthcare system is cur-
country report released by the European
providers will be included in the programmes
rently dominated by old public hos-
Commission.
based on the same conditions as public hos-
“The share of publicly financed health
pitals. At the same time, emergency health-
modernisation and are largely characterised
spending (79.5 percent) is in line with the EU
care services provided to patients by private
by lack of funding, bad management, cor-
average (79.3 percent), and while out-of-
hospitals will now be reimbursed from the
ruption, and low-quality services. Another
pocket payments are generally low, except for
public budget at a capped cost that is aligned
major problem is the migration of thousands
outpatient medicines, informal payments are
with public hospitals. These measures have
of physicians and nurses to western Europe,
both substantial and widespread. In absolute
been fiercely criticised by public healthcare
generating severe staff shortages in many
terms, spending in all sectors is low and the
unions and some observers, who said that
hospitals.
health system is significantly underfunded,”
they essentially represented “privatisation in
the report indicates.
disguise” for public healthcare programmes.
pitals, which are in need of urgent
LOW PUBLIC FUNDING
This reality forces many Romanians from
This dire situation is primarily linked to the
the upper-middle classes or those with high
ARGUMENTS FOR THE NEW MEASURES
low public funding of healthcare services.
incomes to turn to private medical services,
Health Ministry officials have dismissed the
In Romania, health spending is the lowest
which are more expensive, or even to seek
accusations. “It is not a privatisation, but a
in the EU, both on a per capita basis (EUR
treatment abroad. But most Romanians can-
liberalisation,” says Horatiu Moldovan, a state
1,029 compared with an EU average of EUR
not afford to cover the high cost of private
secretary in the Health Ministry, considered
2,884) and as a share of GDP (5 percent vs.
services and depend on public hospitals and
to be among the masterminds behind the
9.8 percent in the EU), according to a recent
medical services when they get sick.
new decisions. “We expect it to result in a
www.business-review.eu Business Review | March May 2016 2020
COVER HEALTHCARE STORY 31 14
redistribution of the number of patients and
underestimated by the government. “One of
funding to the Romanian healthcare system
surgical procedures across the two systems.
the major risks is the migration of the medi-
without a major impact on the public budget
There will probably be more surgical proce-
cal workforce from public hospitals to private
– which is already lacking resources due to
dures done in private hospitals,” he indicates.
healthcare facilities. As private hospitals will
very high fiscal deficits. “We are meeting
But the official wants to ensure the public
have a higher number of patients, they will
with representatives of insurance companies
that the new measures will not affect the
prefer to hire staff that is already qualified,
on a weekly basis. We’re working with sev-
financing of public hospitals, offering three
and the public hospitals are their natural
eral models, and one of them is the French
arguments. First, the budget of the public
workforce suppliers,” Dr. Nicolae Fotin, a
model of mutuelles,” Health minister Victor
health insurance scheme (CNAS) grew this
former president of the Romanian Medicine
Costache recently said.
year by RON 3 billion compared to 2019. “Sec-
Agency (ANMDM) and an expert in health-
ondly, by offering more timely surgical proce-
care services, told Business Review.
dures to patients, the outcomes will improve,
“Other risks include the shutdown of
This measure could have larger effects on the healthcare system, beyond additional funding, experts estimate. Private insurers could better control the cost of services and drugs provided to patients and this could result in improved spending efficiency. Without well-organised complementary insurance schemes, the local health insurance market remains weak, as it is held back by regulations and low purchasing power. According to official data, the number of Romanians with private health insurance policies was around 365,000 at the end of 2018. At the same time, the sums paid for private health insurance policies, which generally cover services offered in the private medical system, increased in 2018 by 60 percent to RON 335 million (EUR 72 million), a negligible sum compared to total healthcare costs in Romania.
and as a consequence, total healthcare costs
some public hospitals, lower earnings for
will decrease,” Horatiu Moldovan points out.
public hospitals’ employees, and reduced
The third argument is related to projected
access to healthcare services for low-income
savings from decreasing costs for treatments
patients after April 1, 2020, when co-pay-
BOOSTING PRIVATE HEALTHCARE BUSINESSES
offered to Romanian patients abroad.
ments for private services will be allowed,”
But the new measures have been welcomed
he added. Dr. Fotin estimates that a high
by the private health service providers, as
procedures performed for Romanian patients
number of patients will be incentivised
they could boost their revenues and profits
in other countries, with the total amount
to move from public hospitals to private
starting this year. The Romanian private
reaching EUR 180 million per year. It is a very
hospitals, and the result could be a transfer
healthcare market has been on the rise in
large amount,” Moldovan notes. According
of waiting lists between the two systems.
recent years, with networks such as Regina
to the official, reimbursing the same surgi-
But one of the major effects will be seen
Maria, MedLife, Medicover, Gral Medical,
cal procedures performed in local private
in public hospitals’ budgets. “The budgets
and Sanador gaining from the tendency of
hospitals will save taxpayer money as the
of public hospitals will be less predictable,
middle- and high-income patients to avoid
costs are much lower than those in hospitals
because they won’t be able to estimate their
public hospitals.
in western Europe. At the same time, officials
share in the public healthcare programmes.
argue that the new measures will create more
The effects of this lack of predictability could
posting double-digit growth rates even
competition between public and private
include cuts to staff and/or beds,” Dr. Fotin
without this new regulatory push, but more
hospitals, resulting in better services offered
said.
favourable regulations could speed up their
“CNAS reimburses the cost of surgical
to patients.
Major local healthcare chains have been
expansion both at the territorial level as well
PRIVATE INSURANCE
as in terms of medical procedures. However, representatives of private
WHAT ARE THE RISKS?
Another important policy change announced
However, many experts have not been
by the new government was the introduc-
healthcare providers have warned that the
convinced by these arguments. In fact, many
tion of complementary healthcare insurance
amounts reimbursed by the state for many
suggest that the impact of the new measures
schemes based on the French model (mutu-
medical procedures do not cover the real
on public hospitals may be significantly
elles). This measure would bring additional
costs, and have called for a budget increase.
www.business-review.eu Business Review | March 2020
32 MACROECONOMY
Romania highly exposed to global downturn as coronavirus spreads Romania entered 2020 in a bad shape from an economic perspective, with huge twin deficits, high financing needs, crippled infrastructure, a workforce crisis, and political turmoil. A possible global downturn - whether triggered by the new coronavirus outbreak or by something else - could add a lot of pain to this already tough state of affairs. By Sorin Melenciuc pension hikes. “If implemented as is without offsetting policy measures, the new law could double Romania’s already sizable fiscal deficit, substantially increase current account deficits and raise external financing needs to excessive levels,” IMF says in its 2019 Article IV Consultation staff report. However, it is not yet clear whether the budgetary disaster triggered by the pension hike can be avoided. The current liberal government and president Klaus Iohannis have tried to force early parliamentary elections this summer – ahead of the scheduled Romania’s public debt is projected to be on an explosive trajectory
pensions increase. But their plan now seems to have failed because the other parties, which still control a majority of the seats in
LARGE TWIN DEFICITS First of all, Romania’s fiscal position has con-
prove to be a prime option in this context.
the Parliament, have blocked the procedures,
“As the Romanian leu is strengthening
with the help of the Constitutional Court (also controlled by the former ruling parties).
siderably weakened, with its budget deficit
in real terms, it becomes an additional pain
peaking at 4.6 percent of the gross domestic
point for exporters. We believe that currency
product (GDP) in 2019, the highest level since
depreciation should be considered though,
implemented, the pension law coupled with
2010 and by far the largest in the European
at least in line with the inflation differential
other current policies (no-policy change sce-
Union. At the same time, Romania closed
between Romania and its main trading part-
nario) would increase Romania’s public debt
2019 with a current account deficit of EUR
ners,” ING Bank analyst Valentin Tataru wrote
to 51 percent of GDP in 2023 and to 91 percent
10.5 billion, or 4.7 percent of GDP – again, the
in a recent report.
of GDP in 2030. “Romania’s public debt is projected to be on an explosive trajectory, but the
highest in the EU -, compared to 4.4 percent in 2018 and 2.8 percent in 2017. Foreign direct
Fiscal Council projections show that, if
markets will force corrections,” the council
investment (FDI), traditionally seen as a
POLITICAL TURMOIL AND PENSION DISASTER
“sound” way to finance the current account
In addition to the lack of options, the govern-
deficit, flattened at around EUR 5.3 billion last
ment faces some major political dangers that
2020 even before the coronavirus outbreak
year, covering only half of the gap.
could lead the nation towards bankruptcy.
in China, but the new international health
A currently applicable law has scheduled a
emergency may end up having a much
mainly by the populist wage increase-ori-
40 percent pension increase starting from
larger impact on the economy than initially
ented policies of the past few years, which
September 1, 2020, a burden already seen
estimated. Romania has been bracing for the
allocated almost all the budgetary resources
by most analysts as catastrophic for public
almost inevitable arrival of the virus as sev-
of the eastern European nation towards wage
finances. However, no Romania politician
eral European countries have reported cases.
and pension spending and cut investments in
dares to propose a postponement of the mea-
Experts are prudent and say it is too early to
almost all areas. Having run out of resources,
sure in a year with two rounds of elections
estimate the economic impact of the corona-
the government now has limited choices.
– local and parliamentary. But experts abroad
virus, but business sentiment already seems
Experts warn that currency depreciation may
have already calculated the impact of the
to be affected.
This fiscal runaway train was triggered
warned in a recent study. A global slowdown was already in sight for
www.business-review.eu Business Review | March May 2016 2020
SUSTAINABILITY COVER STORY 14 33
Waste management issues debated in Arad during Business Review’s “Sustainable Romania” event In February, the city of Arad in western Romania was the host of an environment-themed event organised by Business Review. Titled “Sustainable Romania”, the event was attended by leading figures from both the private and public sectors in the counties of Arad, Bihor, and Timis, which together with Cluj county form the “Western Alliance.” By BR Team Halls ended up having to solve the issues. When things don’t work out well, citizens look to the authorities, namely the City Hall.” He also made a proposal for better selective packaging waste collection by incentivising consumers to return glass bottles or PET packaging. The mayor also stated that he was in favor of a firm response from the authorities regarding waste collection. Iustin Cionca and Simona Stan talked about the waste management programme implemented in Arad, but also about the problems that came with it. “We didn’t set the price, nor the conditions; the European Funds Ministry did. We’re having problems
O
with the Polaris sorting facility, and we know how hard it will be to persuade the popula-
ne of the hottest topics at the event
Varga talked about several projects to amend
tion to adopt selective waste collection. But
was domestic waste, a sector in
the waste management law 211/2011 adding
some important steps have been made. I
which Romania has already taken
that it took him over two years to pass an
remember when waste collection was being
several commitments before the European
amendment which led to an increase in the
done with tractors and horse-drawn carriag-
Union, but most are still far from imple-
fines imposed on those who abandon waste.
es,” says the Arad County Council president.
mentation. The event moderator was Ionut
“The ideal principle that must be applied
One of the main reasons why waste-
Georgescu, the CEO of FEPRA International,
is the circular economy concept. The main
collecting companies abandoned the project
one of the leading organisations that deal
problem is that we were very late in starting
was the very small price, according to Arad
with extended producer liability. The talking
to educate and inform the population. We’ve
officials. “After ten years, the minister’s advi-
points proposed by Ionut Georgescu were
changed legislation to comply with European
sor proposed an update to the fees. We sent a
addressed by Iustin Cionca, President of
standards and we’ve set tasks for both local
plan but the Ministry hasn’t issued a decision
the Arad County Council, Arad Mayor Calin
authorities and private operators. But how
yet,” added Simona Stan.
Bibart, Arad MP Glad Varga, Simona Stan,
can you enforce these standards when the
In response to this issue, the ADI Ecolect
director of ADI Waste Arad, and Bujor Chirila,
Environment Fund, with its huge budget,
director noted that in the neighboring Oradea
director of ADI Ecolect Oradea.
doesn’t grant funding for selective collection
county, mayors can choose between a special
projects?” said MP Glad Varga, a member
tax or a tariff, while operators who want
waste recycling and whether authorities saw
of the Environment and Ecological Balance
to take part in public auctions must come
it as an asset or a burden, as well as around
Commission in the Chamber of Deputies.
up with two proposals. “The winner of the
Discussions revolved around sustainable
the problematic bureaucratic procedures
Mayor Calin Bibart brought up the prob-
public auction chooses based on the average
which slow down the resolution of some is-
lems faced by the city of Arad following the
between the tariff and the proposed special
sues by city halls and ADI Waste, and the pos-
adoption of the new waste management sys-
tax,” concluded Bujor Chirila, director of ADI
sible solutions to these problems. MP Glad
tem. “The project was implemented and City
Ecolect Oradea.
www.business-review.eu Business Review | March 2020
34 ENTREPRENEURSHIP
Brexit shakes up EU startups’ competition over funding and talent Some of the major startup associations in the European Union are calling for the creation of the United Tech of Europe following the United Kingdom’s finalised Brexit process. In response, Romania can take a long-term approach and attract more British and European startups through a mix of fiscal incentives and investments in its tech infrastructure. Still, the UK is set to remain an important startup hub, with venture capital funding having reached a record USD 13.2 billion in 2019. By Ovidiu Posirca
Brexit is a massive wake-up call for the European tech investment scene
T
he UK, which was the second largest
number of challenges to the continued coop-
economy in the EU, entered a transi-
eration and trade with EU-based businesses,
Popa, told BR.
tion period after its January 31 exit
including possible interruptions to the free
companies have been working on contin-
from the bloc. It will have to negotiate its new
flow of personal data between the UK and the
gency plans to decide what will happen once
relationship with the Europeans, a process
EU, an end to worker mobility - meaning UK
the UK actually leaves the EU. A survey from
which will impact the entrepreneurial sector
workers may need visas to travel to the EU to
e-Residency with British companies has
as well.
perform temporary work -, and an end to the
shown that 33 percent of respondents were
free movement of people, making it harder for
considering moving out of the UK, most likely
WHAT’S GOING TO HAPPEN DOWN THE ROAD?
UK and nationals from EU countries to live,
due to dissatisfaction with the government’s
work and study for longer periods,” Miruna
approach to protecting them from the fallout
“The UK’s departure from the EU poses a
Suciu, managing partner at law firm Suciu
of Brexit.
Since the Brexit referendum in 2016,
www.business-review.eu Business Review | March May 2016 2020
“Once Brexit is in effect, the EU needs
ENTREPRENEURSHIP COVER STORY 14 35
ALTERNATIVES TO THE UK
are probably going to be the countries that
new financial capital. All the EU financial
While Paris, Amsterdam and Berlin are some
provide a minimum set of requirements for
institutions currently located in the UK will
of the cities that could compete with London
startups to be able to access the EU market
relocate somewhere else inside the bloc. It
for fast-growing companies, a group of
in terms of clients and qualified workforce,”
is possible that some other financial players,
startup associations are calling for a different
says Suciu of Suciu Popa.
such as investment funds in private equity
approach.
(PE) and venture capital (VC), will also move their headquarters to the continent in an attempt to stay closer to the European startups.
Vladimir Aninoiu, technology direcIn an open letter, the associations call for governments across Europe, including the UK,
tor with Deloitte Romania’s Management Consulting Practice, adds that Romania could facilitate and support the creation of intellec-
to let data flow freely, to
tual property, in order to increase its attrac-
open their doors to tal-
tiveness in the competition for funding. He
Nevertheless, many
ent and break down
suggested that IT startups in Romania would
things depend on
barriers to invest-
not experience any “significant impact” due
the final agreement
ments.
to Brexit.
between the UK and the EU and the conditions imposed on business conducted across the new border,” Cristian Munteanu, managing partner at EGV (EarlyGame Ventures), told BR. The finalisation of Brexit means that PE
“Brexit is a massive wake-up call for the European tech investment scene, which is still fragmented and suffering from a lack of integration: a major reason behind the lack of transnational
In fact, Romania hasn’t built its profile as a “go-to” destination for international startups, and there are no short-term fixes. “The national legal framework is too rudimentary when it comes to startups, the paperwork in any matters related to the state is too complicated and time-consuming, and there are no other clear advantages in locat-
investment in startups. French and German
ing a startup in Romania other than access
funds based in the UK will no longer be part
ecosystems’ heavy reliance on domestic in-
to relatively affordable and qualified labour,”
of the Alternative Investment Fund Manag-
vestors proves that Europe is still far from be-
says Munteanu of EGV.
ers Directive (AIFMD). Thus, the country will
ing a ‘Digital Single Market’,” according to the
be considered offshore and lose its AIFMD
letter. The representatives suggest that Ger-
to capitalize on the uncertainty of Brexit for
marketing passport.
many is set to dominate the startup industry
startups. For instance, the Bank of Lithuania
in the EU after Brexit, but urged all member
launched a special e-licensing tool last year
“No matter which of these marketing options is chosen, the fundraising and the ongoing investment, risk and compliance management of existing PE funds for UK
states to support the “United Tech of Europe” vision. They are calling for the creation of a European Startup Visa
Meanwhile, some EU states have moved
to make the submission of information for an operating banking license easier and more efficient. Eight fintechs, including Revolut, have hubs in this country now.
to ease the recruit-
Estonia has an e-Residency program, al-
managers that do not
ment process for
lowing the establishment and management of
have an EU presence
employees across
EU-based, location-independent companies
following Brexit
the EU.
completely online. So far, more than 60,000
will become more expensive, complex and time consuming,” wrote PitchBook analysts in a report. The UK is one of the largest tech hubs in the world and the country is particularly attractive for
While the entrepreneurial sector in Romania is growing rapidly, it’s still too small to attract large startups that could decide
people have signed up for the program, and over 10,000 businesses have been created, around 440 of which originate from the UK, according to the managing partner of Suciu Popa. “UK and Polish tech trade associations are
to relocate from the UK. But the
pushing for legislation allowing a continued
country can play the long game and be-
free flow of data after the UK leaves the EU,”
fintech entrepreneurs. In 2019, VC funding
come more attractive for international play-
for British startups soared 44 percent to USD
ers through a combination of providing fiscal
13.2 billion, according to a report by industry
incentives, cutting red tape and promoting its
for European startups remains significant.
group Tech Nation and research firm Deal-
high availability of skilled tech workers.
The letter signed by several entrepreneurial
room. By comparison, funding for startups
“Romania still has a competitive advan-
adds Suciu. Meanwhile, the potential for development
associations in the EU points out that the
in Central and Eastern Europe (CEE), which
tage thanks to the good level of education
top 100 US companies invest six times more
includes Romania, amounted to around EUR 1
and language skills of potential employees.
in their local startup ecosystem than their
billion last year.
However, the winners of the race for funding
European counterparts.
www.business-review.eu Business Review | March 2020
36 ENTREPRENEURSHIP
Local startups looking for a chore near you Romanian entrepreneurs are eyeing people’s home chores and might even be competing with international players for a place in your smartphone. From meal deliveries to laundry and small home repairs, startups are coming up with products and services that are designed for convenience. By Ovidiu Posirca
Across the European Union, there are many platforms for on-demand home services
H
owever, there are numerous chal-
things that until now were happening on
startups that do overcome these challenges,
lenges that entrepreneurs have to
the grey or even black market, says Cristian
as there is competition,” Munteanu told BR.
face when building their business.
Munteanu, managing partner at EGV (EarlyG-
Aside from the growing competition, startups in this field might struggle to scale up their operations across Romania.
ame Ventures). “The scalability of the model is another
This market is still in its early stages of development and players are quite dependent on the consumers’ financial health. If the
problem, as such startups must conquer the
economy slows down, for instance, consum-
market city by city. Lastly, the go-to-market
ers might decide to start cooking their own
THE CHORE OF GROWING A BUSINESS
strategy for such businesses is difficult and
meals at home.
Startups in this field face challenges on the
the marketing budget required is sizable.
Romanian market, such as bringing to light
Anyways, there is a market out there for the
“The potential for house chore startups and the viability of use cases will need to
www.business-review.eu Business Review | March May 2016 2020
ENTREPRENEURSHIP COVER STORY 14 37
be tested and assessed in the near term,”
meal delivery segment. However, local res-
Vladimir Aninoiu, technology director with
taurants are working with these companies
Deloitte Romania’s Management Consulting
in order to reach more customers. Uber Eats,
dry cleaning services with delivery in 24
Practice, told BR.
Takeaway, Glovo, Foodpanda are some of the
hours from the time the order is placed. The
largest players on the market. The increasing
startup has another division called Beau-
services is Feexers. The company launched
popularity of these platforms removes the
tyJeff for getting your hair or nails done. The
an app that works as a broker between
hassle of having to cook or even make your
company has raised USD 11.9 million to date
electricians, plumbers or painters and
own coffee.
and is present in 40 countries through an
One of the local startups providing home
homeowners who have various projects.
In the food sector, there are numerous companies with
include babysitting, tutoring or cleaning. Spain-based Mr Jeff offers laundry and
omnichannel value proposition. Danish HappyHelper has over 4,000 pro-
similar busi-
fessional cleaners enrolled on its platform.
ness models
In order to get a price estimate for a job,
that differenti-
you only have to fill out the location of your
ate themselves
home and its surface, alongside the date you
through brand-
would like to contract a cleaner.
ing and overall
In the Netherlands, Picnic operates an
operational
online platform created to provide grocery
results. At some
supermarket services at low prices. The
USD 6.4 billion
startup has received EUR 350 million worth
across 185
of funding. It matches users with bakers and
rounds in 2018,
greengrocers and handles product delivery
roughly two-
with electric vehicles.
Eusediu Margasoiu, the CEO and co-founder
thirds of invested capital this past year was
of Feexers, says he has worked for the past
deployed across food delivery or e-commerce
some EUR 10 million and has attracted over
2 years to find around 7,000 specialists that
platforms in a race to win over consumers,
400,000 professionals on its platform rang-
could be enrolled in the app. Currently, the
according to PitchBook data. Close to 30
ing from electricians to personal trainers and
app has around 1,700 service providers and
percent of VC deals closed in the food tech
photographers.
over 20,000 downloads.
industry in 2018 covered meal kits & delivery.
“We believe that Bucharest and other big
Locally, LifeBox is a food delivery platform
Italian startup ProntoPro has raised
Spanish startup Eelp, which got EUR 750,000 in funding, provides a series of at-
cities in the country have a potential that
that can provide five types of healthy meals
home services, from cleaning to babysitting,
we believe to be quite large on this market,
daily. Each menu is personalised, based on
cooking, tutoring or chauffeuring.
which will be targeted by a similar technol-
the customer’s individual needs. The startup
ogy in the long term,” the entrepreneur re-
has over 15,000
cently commented in an interview for Ziarul
customers and
Financiar. He added that he wants the startup
is present in
to expand across Central and Eastern Europe
three cities.
within the next 5 years. Another platform that gathers suppliers of
“The project grew exponen-
services is MaiSimplu. It doesn’t just target
tially in its first
home projects, but can be used to find law-
two and a half
yers, dentists or make-up artists. The app has
years, which
had more than 5,000 downloads on Google’s
confirms Roma-
Play Store.
nians’ interest in
Elsewhere, Cristian Toanchina launched
The Helpper startup offers a platform
improving their
Drop&Go, an app-based laundry service. The
lifestyle and
startup launched with five employees. Users
moving towards
can get their laundry done through a few taps
healthier habits, including in the food area,
for home services to local residents. The
on their phone. A delivery person will come
through LifeBox, meditation or sport,” says
Antwerp-based company aims to revolutio-
and pick up the clothes and will return them
Radu Balaceanu, co-founder of LifeBox.
nise home care. People who need help with
clean the next day, at a time that is convenient for the user. The startup is currently
day-to-day tasks such as babysitting, picking up children from school, cleaning or nursing
operating in Bucharest, on a highly frag-
EUROPEAN APPROACH TO HOUSEHOLD TASKS
mented market. There is fierce competition
Across the European Union, there are plat-
who want to earn some extra money can
between large international startups in the
forms for on-demand home services that
reply.
can submit a request. In turn, local residents
www.business-review.eu Business Review | March 2020
38 HR
Creative employer branding tools in the IT&C and gaming industry For any company today, especially those in very competitive fields, having an employer branding strategy is extremely important for eyeing the best industry talent, driving innovation, and aspiring to stay ahead of the competition. By Romanita Oprea a trend 5-6 years ago. Today it’s a stringent business necessity. Companies and institutions in Romania are in desperate need of employees, both in blue collar jobs as well as roles requiring experts and great talents. We see companies that developed their operations in Romania and had a solid growth here now finding it challenging to have a good business performance because of the labour market issues,” said Irina Roncea. From factories and cleaning service companies to schools and kindergartens or IT&C and creative industries, everybody’s hiring in Romania. And they’re doing so at a very high cost. That is because “a challenged labour market, now lacking both in terms of the Ana Pohrib, Amber
E
number of people available to hire as well as in terms of the quality of the workforce, creates dramatic competition and companies end
lectronic Arts Romania, one of the
employee communication. “The agency has
up bidding over an employee that may not
biggest technology and video game
always worked on employee communication
be the most skilled or the most loyal, and not
companies in the world, together with
briefs, and over the past 4-5 years the number
have the greatest will and potential - they’re
Golin, invited technology and interactive cre-
of employer branding briefs has constantly
just individuals whom you can hire to fill an
ation experts to join their developing studio
increased. Companies that didn’t use to invest
open position. And a couple of months later,
in Bucharest, as part of the “Unique Togeth-
in communication before have started to do
another company comes and makes a bid and
er” employer branding campaign. “Ever since
it in the last 2-3 years for employer branding
this goes on and on, at a very high rotation
2006, when we came to Romania, we’ve been
reasons, due to a scarcity of talent on the mar-
speed. We are in a paradoxical position where
constantly expanding and developing local
ket, both in terms of quantity and quality,”
we have too many job openings and too few
teams and today we are one of the biggest
said Roncea.
people to fill them,” added Golin’s managing
technology companies in the country and one
Moreover, according to Merla, Golin runs
director.
of the biggest Electronic Arts studios in the
a unique Customer Journey analysis to frame
According to Ana Pohrib, people ops
world,” said Andrei Lazarescu, EA SPORTS
the assignment and find the focus point or the
manager at Amber, the difficulty of identi-
senior producer at EA Romania.
key job to get done, so that their path forward
fying and attracting the right candidates is
can be clear. Next, the agency teams do re-
high and has two major causes. First of all,
at Golin, said that through this campaign,
search to obtain insight that will inspire their
the IT&C industry is very challenging, and
the agency wanted to reach an audience
creative solution and determine KPIs to mea-
being part of the game development niche
that could resonate with the diversity and
sure their work and guide future campaigns.
narrows the pool of candidates even further.
Meanwhile, Florin Merla, senior manager
This particular industry has now over 6,000
the traits of the hundreds of EA Romania specialists. In fact, according to Irina Roncea,
TREND OR REALITY?
specialists and grows from year to year, but
managing director at Golin, the agency has
Is it a trend among companies to hire agen-
it’s not enough. “The second cause is related
extensive expertise in employer branding and
cies to work on employer branding? “It was
to the fact that Amber is an independent
www.business-review.eu Business Review | March May 2016 2020
COVER STORY HR 39 14
called Amber Academy, which is already in its third year and is based on three pillars: workshops dedicated to students and recent graduates (talks about the industry and the roles, raising awareness about what it means to work in the gaming industry and especially at Amber), a two-week summer camp for young people who want to gain more knowledge about game development and an internship phase that takes three months. At the same time, Amber Academy is open to current employees who want to grow, develop new skills and become mentors for the new generations. In her turn, Anca Teletin, chief operations officer at Grapefruit, believes that an employer branding campaign for the IT & gaming and digital sectors doesn’t have to be creative as much as it has to be friendly. And that’s because people tend to choose friendly job Florin Merla, Golin
Anca Teletin, Grapefruit
postings rather than rigorous, formal ones. “We want to show our friendly side to poten-
studio, with a different organisational culture.
can fill a position in two weeks tops, but in
tial candidates, to give them the same ‘vibe’
That is why we want to attract people with an
other cases two months might go by before
we have here at the office. We are looking
entrepreneurial spirit: candidates who will
you find the best match. For example, devel-
for passionate people who would match our
approach their job not just as a role, but as
opment roles tend to bring more challenges
Grapefruit values, people who want to be the
their own business. We are looking for the en-
when it comes to finding the right person. We
best in their field, and we’re always mention-
trepreneurial attitude – the future colleagues
are looking for colleagues with experience
ing that in our job openings and social media
have to look around them and see more than
and in-depth knowledge of their field, who
posts,” Teletin stated.
just their own tasks and team, but also think
are proactive when it comes to their own de-
“There are two major principles we fol-
about the others’ well-being and projects. We
velopment, analytical, and passionate about
low when it comes to our recruiting process:
need to combine technical skills with a behav-
their work. Last but not least, we are looking
people, not jobs, and the right people in the
iour and attitude that will fit the cultural envi-
for people with a positive vibe and a ‘can do’
right seats. We also hire based on our values:
ronment that they will find in our company,”
attitude,” said Bianca Ardeleanu, HR special-
passion, accountability, fairness, pragmatism
said Ana Pohrib. The number of employees at
ist dcs plus.
and being an A-player. With this recruitment process, we are making sure that we are
Amber will grow by a minimum of 20 percent, and it is estimated to pass the 500 mark by the
THE CREATIVE SIDE
indeed choosing the right people and, on the
end of 2020 in its 5 offices across the world:
In this context, do IT & gaming companies
other hand, that candidates know for sure
Bucharest, Botosani, Los Angeles, San Fran-
also require creative and new approaches to
that they want to work at Grapefruit. This way
cisco, and Guadalajara. And that in a context
improve their recruitment process?
they can discover whether our company is the
in which the number of candidates decreases
“In our specific context, I believe that
best place for them in terms of personal and
with every year that passes, with most of the
an authentic, straightforward campaign is
professional growth and development. The
talents choosing to leave the country, whose
catchy. When you are looking for colleagues
compatibility between the Grapefruit team
education system fails to prepare specialists
who will be there for a long time, it is best to
and the candidates weighs the most in our
to work in today’s most dynamic sectors. A
outline the reality without a hidden message.
decision-making process. We’re not neglect-
vicious cycle that sees companies having to
In general, if the message is coherent and
ing the technical side, but we care a good deal
adapt every day and create their own special
straightforward, creativity helps you highlight
about our chemistry with each candidate. We
recruitment tools and approaches.
your presence in a sea of possibilities. I would
have a compatibility test where our HR repre-
say that creativity, without a doubt, is the key
sentative and our personal development and
in standing out,” Ardeleanu concluded.
team integration specialists have a conversa-
“It is certainly not easy to find the purple squirrel when you aim to find both technical and culture fit in such a dynamic market.
On the company side, Amber rolls out dif-
tion with candidates in order to find out more
The difficulty lies in a series of factors (e.g.:
ferent employer branding activities through-
about them and see whether they are a good
seniority, field of expertise): sometimes you
out the year. One attractive programme is
fit, said Teletin.
40 PERSONAL DEVELOPMENT
Failure is nothing more than feedback A professional fire-walker, a board breaking, bar bending, arrow breaking and glass-walking instructor, hypnotherapist, and neuro-linguistic programming (NLP) trainer, certified and registered with The American Board of NLP (ABNLP) since 2006. Oluwatosin Ogunnusi - or “Tosin” as he is known by his friends, family and colleagues - has trained thousands of people worldwide and is a very dynamic and charismatic presenter, considered to be the UK’s number one motivational speaker. BR talked to him about the fear of failure and his main teaching principles in personal development.
www.business-review.eu Business Review | March 2020
ABOUT Tosin Ogunnusi Tosin’s experience and passion lies in helping individuals and organisations improve their performance, with over 20+ years of experience in Personal Development, Sales and Leadership within a range of organisations. His company has worked with the likes of the FA (UK Football Association), Aviva (one of the largest insurance companies in the UK) and O2 (telecommunications company).
By Romanita Oprea How did you choose this professional path? In a funny way, I think this professional path chose me because as a kid, growing up in a poor family, I didn’t have much else except a passion and didn’t know what gift I had, so it took a while to figure that out. But I started to realise that whenever people would ask for my help and I told them what I thought to be true, they always said my advice was amazing and that it really helped them. At the same time, by sharing things with other people, I didn’t know I was actually helping myself. My father used to work for the Nigerian High Commission, and in 1992 he got posted to London, therefore I had to go to school there and master my English language skills - I was in college, but I was also working part-time and then full-time. When I got my first full-time job, at one point I started to ask myself why I was doing that type of job - I was sitting behind the desk doing accounting, but that wasn’t me. I had a lot of energy and didn’t know what to do with it. One day, a lady came to our company to do a review and she brought along a speaker. His name was Bob Proctor. I saw him speaking and within three hours I was blown away. I was amazed. It was the moment when I realised that this was what I wanted to do. So I asked him how much it would cost to get trained after his method, and he told me 10,000 dollars. But I didn’t have that money. He told me: “son,
www.business-review.eu Business Review | March May 2016 2020
PERSONAL DEVELOPMENT COVER STORY 41 14
if you cannot afford it, you cannot afford not
I only have one challenge and that is our
But we forget that. Now that we are adults we
to”. And he walked away. What he actually
conditioning. We are glued to what we know
want everything to be perfect.
said was that I shouldn’t give him my excuses.
and are ignorant to what we don’t know. The
If you really want to do something, you have
biggest challenge for me was not being willing
entrepreneur, you have to give people a little
to forget about your story, you have to get up
to fail. The fear of failure is a big one for many
bit of leeway to make mistakes, especially
and do something about it.
people. Everybody wants to be right and I
ones that are not costly. People have to figure
think that when you overcome those two
it out, especially if you are innovating and try-
fears and brace the unknown, life seems to be
ing out new stuff. If you are creative, you have
who people are in all areas of my life; Success
effortless. Because life is a rollercoaster: it’s
to test your ideas. I think it was Brian Tracy
- what is that? Because people don’t define it.
hard on the way up, it’s fun on the way down,
that said “if you make enough money in busi-
They think it means celebrity status, money,
and so on. If you are in it, it’s the same for me
ness to cover your mistakes, you’ll survive”.
houses, cars, etc. But it’s not. Those are by-
and you, for everybody.
Because you are always testing (new market,
Then I decided: I will show people that I can do it. I went and borrowed 12,000 pounds
If you are employing people, if you are an
from Barclays bank, in order to also cover other expenses such as traveling, accommodation, and so on… it took me eight years to pay it back. And that was the beginning of my transformation. Now, I spend hundreds of thousands on personal development. I never stop investing in myself. Every year I do some sort of coaching, training. I am still a work in progress, but over the years I have been able to impact thousands of people and also to write. I am on my fourth book; it’s a journey.
It was internal motivation in this situation, wasn’t it? Yes. And I had to figure out my own path in my journey. My book is called “Time to break free”, because this is what I’ve learned in my experience so far. There were 7 key principles that I had to break through, some of which are: Mindset - having the right mindset to deliver; Values - what are mine, which ones are driving me to do what I do, to figure out
pricing, products, ideas, etc.) And after a
products of success. You must define what it
while you have to re-innovate, because what
I learned how to let go of them, and I have a
When it comes to the fear of failure, do you see any difference in the way an entrepreneur sees it versus a CEO or a manager in a bigger company? And how do you work with that, on each level?
system to help other people do that; Purpose
The answer is quite easy. The fear of failure
People have to keep innovating, changing,
- I have always wondered: who am I, why am I
means that we don’t want to look silly. We
testing, and failing. One of the best quotes
here? I’ve always been a seeker and a learner.
don’t want to be wrong in front of other
somebody shared with me was “failure is a
And I am trying to help people figure out who
people. When it happened to me I didn’t want
way towards success”. Because failure is just
they are. The purpose is bigger than ourselves
to move, therefore I wasn’t growing. And I
feedback. Whether your idea worked or not,
and it’s always about serving others. You have
see that in a lot of people. The reason is that
you learned something. Both scenarios are
to have a goal and all of a sudden the Universe
we are so afraid to see who we really are, but
about learning.
comes to support you in your journey.
this is the only way we learn. As children, we
is you want. Success is a progressive realisation of a worthy idea. And I’ve had to figure that out myself; Emotions - I had a lot of negative ones growing up, I was damaged, but
know that first we have to first roll around,
What are the main challenges you’ve faced besides the money factor, and what are the main challenges you encounter with the people you coach?
got you here won’t get you further. And life is changing. Look at Kodak, for example. If you are running your business like you did 5 or 6 years ago, you will soon be out of business.
then crawl and then get up and fall down, get
So this applies to any category of business people?
up and fall down again, etc. That’s what we
Yes. Any category of business people and
all did and we all figured it out eventually.
people in general, regardless of their gender,
Therefore, a series of failures led to success.
age or occupation.
www.business-review.eu Business Review | March 2020
42 HERITAGE
Bucharest’s best kept secret: the city centre facelift Between Unirii Square and Victoriei Square, the city centre sometimes offers glimpses of what it should be, but isn’t: a commercial area where both tourists and locals can enjoy walking, with a mix of great historical buildings and new architectural gems, where shops, restaurants, bars, cafés, and cultural institutions all fit in. What’s happening instead? Let’s go for a walk together. By Oana Vasiliu
Old vs new on Calea Victoriei
- music, bars, and restaurants. Furthermore, following an investment of EUR 6.5 million, Magazinul Bucuresti is currently designed to combine retail spaces, Class A offices and a restaurant under the same roof. The building has a total leasable area of approximately 3,150 sqm, distributed over seven levels, so a new vibe will be added to the area. Yet anothBucharest’s best known cafe back in the days
er great spot in Bucharest is the Municipality Museum, a palazzo that is not promoted to
UNIRII TO UNIVERSITATE
billboard advertising spots. Highly recom-
its true potential. Truly recommend a walk
Since the colourful upgrade of the fountains
mended. Going north to Universitate, the city
inside - you are going to be impressed.
(recognised by the World Record Academy
seems to take a breath in front of the Sfantu
in 2019), I was under the impression that the
Gheorghe Orthodox Church - where there’s
UNIVERSITATE TO ROMANA
area would seriously improve. In fact, the
always a nice buzz due to the tram station.
Or as I often say, where sadness really hap-
Dambovita shore looks pretty international
Furthermore, Coltea Hospital is looking
pens. The Magheru boulevard used to shine,
with all the restaurants and bars and the
incredibly good - and you probably won’t
offering the finest stores, restaurants, hotels,
quite nice view over the river, but the same
guess that the building is a hospital; and just
cinemas, and of course, stories and legends.
can’t be said about the other side… While
around the corner, you’ll see Bucharest’s best
But since the development of malls and later
Unirea Shopping Center’s ground floor looks
selling postcard: the National Theatre (also
on the tragedy of the Colectiv fire and new
somehow connected to 2020, I don’t recom-
facelifted) and the Intercontinental Hotel, at
safety regulations, the boulevard seems
mend going upstairs, where it’s still 2010. 100
the very heart of the capital city.
ghosted. The ground floors have big, dirty
metres later, Cocor, yet another emblematic
The opposite sidewalk looks like an outlet
windows with FOR RENT/FOR SALE signs
building, which USP is the shopping destina-
shopping destination: from clothes to books,
on them, the graffiti is quite unaesthetic,
tion for Romanian designers, is incredibly
from kitchen stuff to pawn shops where you
and the red dots reminding everyone that an
empty - but it’s a great and safe place to park
can buy second hand phones. And pretty nice
earthquake is inevitably coming aren’t very
your car and it’s one of Bucharest’s best
glimpses of the old city centre’s vibrant life
pleasant either.
www.business-review.eu Business Review | March 2020
HERITAGE 43
Nice view to Unirii Square: Magazinul Bucuresti, the boulevard and Cocor Store
Entrance of the National Museum of History
very vibrant lately. Cafés, restaurants, small
o Revista magazine published an article ex-
the National Museum of Contemporary Art
galleries, pop-up shops are attracting more
plaining what would happen in Bucharest if
(MNAC) opened the doors of one of the best
and more customers, while Bucharest’s
a big earthquake took place - a previous one
known galleries - the Dalles Hall - in an at-
historical landmarks are better highlighted.
destroyed the city in 1977. Long story short:
tempt to draw attention to the fact that the
Thumbs up for the National Museum of Art,
over 6,500 people could die, more than
gallery remains closed due to some politi-
which hosts temporary exhibitions on its
15,000 would get hurt, the entire emergency
cal issues: the City Hall decided to give the
fence and getting many people to stop and
system would collapse, and the remaining
building to the Romanian Academy, but a
take a look at the installations.
population won’t know what to do. Since
Two things worth mentioning: recently,
then, the Bucharest Community Foundation
judge decided that it was MNAC’s property.
THE REAL DEAL
has been raising a fund with the help of ING
the sidewalks. The good news is that after
In 2014, an article in the Guardian said
Bank, IKEA Romania and Lidl - called Pre-
a long wait, the Astronomical Observatory
Bucharest was Europe’s earthquake capi-
pared Bucharest - where NGOs can apply for
finally got its facelift - not yet completed, but
tal, and everyone was outraged. Due to its
funding for projects that include providing
it’s a start.
geographical position, it’s true. In the old city
education and information on what to do in
centre alone - including most of the areas
case of a calamity, finding places suitable to
CALEA VICTORIEI
mentioned above - over 350 buildings have
shelter people or training dogs. One can only
For some reason, Calea Victoriei has been
a Class I risk label. Later on, in 2017, Decat
hope for the best.
Until the new lawsuit is finalised (the previous one took 15 years) the gallery will remain closed - and it will need a major facelift. Still, the museum organised a window display where people could see pieces of Romanian contemporary art. A big round of applause should go to the complete facelift of the Lido Hotel, which reopened for the public in 2019. They preserved some of the hotel’s features - such as the brasserie, the elevator and even the original ceiling, but also some details from the 30s, when the Lido Hotel was the place to be. High hopes for the pool with artificial waves, which used to be a sensation back in the day.
ROMANA TO VICTORIEI The scenery changes completely at this point: buildings are prettier and incredible houses guide you to a fairy-tale Bucharest. It could be picture perfect, if cars weren’t parked on
www.business-review.eu Business Review | March 2020
44 FILM
Gopo Awards: Romanian films in review Once again, the Gopo Awards will celebrate the most important Romanian movies through a gala which will take place on March 24. 91 films entered the competition and some of them have already been under the international spotlight. So who’s who this year? By Oana Vasiliu Damian (Marona’s Fantastic Tale), Catalin Mitulescu (Heidi), Corneliu Porumboiu (La Gomera) and Marius Olteanu (Monsters). The Best Actress category recognises Belén Cuesta (Parking), Catrinel Marlon (La Gomera), Catalina Mihai (Heidi), Dana Rogoz (Mo) and Judith State (Monsters), while the nominees in the Best Actor category are Gheorghe Visu (Heidi), Iulian Postelnicu (Arrest), Mihai Smarandache (Parking), Radu Botar (The Cardinal) and Razvan Vasilescu (Mo). For Best Documentary Feature, nominaPhoto: Sorin Florea
tions went to The Distance Between Me and Me, directed by Dana Bunescu and Mona Nicoara; Emigrant Blues: a road movie in 2 ½ chapters, directed by Mihai Mincan and Gopo’s Little Man is offered as prize for the winners
Claudiu Mitcu; Being Romanian. A Family Journal, directed by Serban Georgescu; The Man Who Would be Free, directed by Mihai
2019 FILMS IN REVIEW
Cristina Iocob’s Oh, Ramona! had 260,531
Mincan and George Chiper-Lillemark, and
Although local cinema is still underfunded
film-goers and revenues of RON 5.09 million,
Timebox, by Nora Agapi.
and there’s barely any infrastructure for
half of it obtained in its first weekend on the
The Lifetime Achievement Gopo Award
author cinema, 2019 was another great year
big screen. Secondly, the documentary Mary,
goes to Romanian actress Adela Marculescu,
for Romanian film, with most of the films
the Queen of Romania attracted 139,081 film-
known for her thousands of film and theatre
taking part in competitions/screenings at top
goers. Iura Luncasu’s Taci sau Faci brought in
performances. Currently, Adela Marculescu
international festivals.
89,548 people, with a total revenue of almost
is playing on the Bucharest National Theatre
RON 2 million.
stage and can be seen in The Idol and Ion
At Berlinale, Marius Olteanu’s Monsters
Anapoda (directed by Ion Cojar), The man
received Public’s Award, and was also the only Romanian movie to take part in the
GOPO 2020 NOMINATIONS
who saw death (directed by Dan Tudor), The
competition at the 2019 edition. After that,
The big surprise this year is Corneliu Porum-
suicide (directed by Felix Alexa), and Terror-
the world’s best critics applauded Corneliu
boiu’s La Gomera, which obtained a total of 13
ism (directed by Felix Alexa).
Porumboiu’s La Gomera, which had its world
nominations. Catalin Mitulescu’s Heidi took
premiere at the Cannes Film Festival, while
10 nominations, while Marius Olteanu’s Mon-
the Locarno Film Festival offered its Special
sters had 9 nominations. The 2018 Golden
Jury Prize to Ivana Cea Groaznica (Ivana The
Bear film, Adina Pintilie’s Touch Me Not, also
Terrible) by Ivana Mladenović. Autumn came
received 9 nominations, as did Tudor Giur-
with Alexander Nanau’s Colectiv movie,
giu’s 2019 drama Parking.
which premiered at the Venice Film Festival
The Best Feature Film category nominated
and went further to the Toronto Film Festival,
Anca Damian’s Marona’s Fantastic Tale,
where critics once again offered good reviews
Corneliu Porumboiu’s La Gomera, Marius
for the chosen topic.
Olteanu’s Monsters, Tudor Giurgiu’s Parking
In terms of the Romanian box office, 2019 had 192 premieres, of which 26 were Romanian movies, according to Cinemagia.
and Adina Pintilie’s Touch Me Not. The Best Director Category is disputed between Adina Pintilie (Touch Me Not), Anca
600 91 22 14 55
Romanian film professionals vote
Romanian films nominated
feature-length movies
documentaries
short films
www.business-review.eu Business Review | March 2020
RESTAURANT REVIEW 45
IS THIS THE BEST IN TOWN? >>> Kane, 9 Dianei Street, 031 410 0016 <<<
T
here are three restaurants which
first main of “carrot cake”. You may well ask
western cookbooks and watching inter-
can equally claim the accolade
how you can sex up a carrot, but the House
national foodie programmes on TV. Their
of being the best in the land, and
pulled off a master stroke. Picture a carrot
incompetence makes my blood boil with
KANE is one of them. They add the “New
cake, but fried in butter, garlic and rosemary.
anger when I see them on Romanian TV,
Romanian Cuisine” tag to their name,
Then they top it with pickled mustard seeds,
and yet they charge top dollar in Bucharest,
which is misleading and initially put me off
drown it in carrot puree and add a squirt of
while in Europe they would be relegated to
going there, as I envisaged sexed-up ver-
bacon and chive oil. It plates up like a work of
washing dishes.
sions of such local horrors as saramale and
art before your eyes.
But back to Mr Bejenariu. He had the
Away we went to a zander with what the
good fortune of being trained in England,
House described as a “hay/grass mayonnaise”
a country that - to the disdain of my dear
rary European cuisine, and the Romanian
with kale, mustard stalks and sorrel, all
French friends - is now recognised as the
twist is in the fact that they source all their
swimming in a fish sauce. I hope you are all
centre of excellent world cuisine. He trained
ingredients locally. So do not expect to see
taking notes because I am pained to give you
in many of England’s top restaurants, which
Italian salami, Spanish ham or a French
the intel on the work the House has engaged
by default means he trained with some of
cheese board. But you won’t miss those
in. And if you want further proof at this
the best in the world. And it shows in his
mici. But I was so wrong. The reality is that they create contempo-
things, because what they do create is quite sensational.
juncture, if you were
work.
in France
In a nutshell, KANE
So let’s eat. It is
can stand its own
housed in a historic
alongside the fin-
villa which lends
est restaurants
itself to a warm
in London,
casual ambi-
Paris, Milan or
ance. The staff
Madrid. I’ve
are amazing:
purposely
I have never
erased New
seen waiters
York from this
who are so well
list of gastro
versed in the
cities as its lard
details of each
tubbed, obese
dish. If you have any
population has
questions, there’s no need to drag the chef out of the kitchen - the waiters are so
chosen to pig out on you would get a fruit sorbet in a
knowledgeable that they can answer any
champagne glass to cleanse and refresh your
queries you may have.
palate before gorging on a delicate desert.
junk food MacMuck outlets rather than sophisticated and beautiful cuisine. But all is not good in paradise. The
But no, not at Kane. Here you get a white
House wines were priced through the roof.
menu, which gave us a broad spread of
chocolate mousse sorbet, but with a slice of
The standard markup is 300 percent over
dishes on which we could judge the talent
pear and a reduction of acacia flower and
the retail price, but KANE pushes it up too
of the House. We could not fault them on
pear consomme. It was superb.
far. So if you see me eating there, you will
Blondie and I opted for the tasting
any dish. So we started with the “amuse
So how does the House pull it off? Well, it
be able to identify me as the man who is
bouche”, several tiny dishes made to get
is all down to the Chef. They have a fine fel-
making one glass of wine last for the dura-
you excited about the meal to come. I shall
low, Catalin Bejenariu, who is distinguished
tion of my entire meal, but with a satisfied
not describe them as they will doubtlessly
for being one of the few formally trained
smile on my face.
change by the time you go there.
Romanian chefs. Be aware that 98 percent of
As we munched on our bread and butter - both were made in house - we awaited our
all local chefs have had no training whatsoev-
Michael Barclay
er, and have “learned” their craft by reading
mab.media@dnt.ro
www.business-review.eu Business Review | March 2020
46 CITY
Cultural calendar NOSTALGIA party March 6-8, Romexpo
By Oana Vasiliu
If Daddy Cool, Rasputin, Rivers
Pandele is mostly focused on
of Babylon and Ma Baker sound
the discoveries he makes during
familiar, it’s definitely time to get
the creation process, searching
a ticket to the Boney M concert.
for that essential, unique image
The band that has sold more than
which truly deserves to be seen.
80 million records worldwide is now coming back to Bucharest. Bonus: Precious Wilson from It’s the 80s and 90s all over again,
Eruption will be opening the
Oregon-based musical group
but this time with a pop and
show. Tickets cost between RON
Pink Martini returns to Roma-
dance playlist, as well as decor
50 and 200.
nia, together with singer China
and costumes. Furthermore, everything is seasoned with some Romanian flavours from back in
Tag Your Ideas: Mihnea Mihalache Fiastru x FREE NOW Until March 20, Control Club
Forbes, for yet another two great
Avishai Cohen concert March 25, Cinema Pro
concerts. The world’s smallest orchestra, Pink Martini, sings in
the day, so this party is going to
22 languages in opera houses,
be fabulous. Tickets still available
concert halls, film festivals,
for RON 77.
museums, and fashion shows. Of
Mariza concert March 7, Sala Palatului
course, they’ve also reinterpreted
On the alternative scene of
a well-known Romanian song by
Control Club, the Tag Your Ideas
Maria Tanase: Pana cand nu te
project brings a meeting with
iubeam. Tickets start from RON
multidisciplinary artist Mihnea
120 and go up to RON 350.
Mihalache Fiastru, featuring a photography installation
WTFWJD solo exhibition Until March 21, Mobius Gallery
compressed into easily recognisable urban details. Speaking about his photographs, Mihnea Mihalache-Fiastru explained
Fado singer Mariza will once again delight the Romanian
Jazz Syndicate Live Sessions once
that “The pictures I take are the
public with her incredible voice,
again presents trumpeter Avishai
stories I can’t write anymore, and
followed by Luis Guerreiro (tradi-
Cohen, this time introducing
the stories I write are the pictures
tional Portuguese guitar), Carlos
Big Vicious, an album featuring
I can no longer take.” These are
Ferreira (acoustic guitar), Adriano
a blend of electronica, ambient
Mihnea’s photographic stories,
Alves (bass), Joao Freitas (percus-
music and psychedelia, as well
sion) and Joao Frade (accordion).
as grooves and beats from rock,
The solo exhibition of recent
that no longer exists, but that,
Book your seat for prices starting
pop, trip-hop and more. The proj-
works by artist Pandele Pandele
bizarrely, you can still feel. “The
from RON 99.
ect includes two guitarists (Yo-
comprises a large variety of
details build the image, and the
nathan Albalak and Uri Ramirez)
works, from paintings to draw-
image builds the photo - the city
and two drummers (Aviv Cohen
ings, sound elements, ceramic
becomes a topic of investigation
and Ziz Ravitz), and has gained
objects, ready-mades, light boxes
and the people and streets exhale
a devoted audience at interna-
and digital art, as well as a site-
routes that Mihnea presents in
tional festivals. Ticket prices start
specific installation. The exhibi-
his photos,” describes curator
at RON 50.
tion reads as a guide for decoding
Eugen Rădescu’s installation
what we currently call common
for Tag Your Ideas. While you’re
reality. Each work stands alone
there, grab a beer and look up
as a coherent statement against
at the club’s schedule - you will
the ordinary, turning the artistic
definitely find a live concert or a
process into a “guerrilla product
party concept that will get you to
placement”, as the artist states.
stay longer.
Boney M concert March 8, Sala Palatului
Pink Martini feat. China Forbes concert March 30-31, Sala Palatului and Fratelli Studios
about memories and a past
