BR/03/2020

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

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

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