BR/06/2021

OFFICE MARKET STARTS TO RECOVER AS EMPLOYEES RETURN TO THE WORKPLACE

June, 2021 / Volume 25, Issue 5

www.business-review.eu

6

EIB TO FOCUS ON PRIVATE SECTOR GROWTH AND FDI IN ROMANIA

18

ROMANIA’S TRADE DEFICIT STILL WIDENING DESPITE EXPORT REBOUND

23

ROMANIA GETS BEHIND EU’S UNICORN HUB AMBITIONS

24

AT BOSCH, CHANGE AND EVOLUTION ARE OMNIPRESENT ACROSS ALL BUSINESS SEGMENTS

www.business-review.eu Business Review | June 2021

EDITORIAL 3

• Editorial •

REAL ESTATE

Anda Sebesi • Editor-in-Chief • 6 Office market starts to recover as employees return to the workplace

COVER STORY

Making the most of our cities

A

smart city is a place where traditional networks and services are made more efficient with the use of digital

8 At Bosch, change and evolution are omnipresent across all business segments

MAIN STORY

and telecommunication technologies, for the benefit of its

inhabitants and businesses. It goes beyond the use of information and communication technologies (ICT), into better resource use

12 Smart cities as

and reduced carbon emissions. It means smarter urban transport

foundation to sustainable future

networks, upgraded water supply and waste disposal facilities, and more efficient ways to light and heat buildings. It also means a more interactive and responsive city administration, safer public spaces, and meeting the needs of an ageing population.

ENTREPRENEURSHIP

With the pandemic changing the way societies and cities work, smart city transformation can no longer be seen as a “nice to have”. This is why we decided to dedicate this issue’s main story to this topic. COVID‑19 has resulted in us all experiencing different levels of isolation and a lack of connectedness. As we emerge from the immediate crisis, there is a unique opportunity to improve

24 Romania gets behind EU’s unicorn hub ambitions

26 PNRR set to enhance local startup funding ecosystem

connection by embedding digital infrastructure and smart city initiatives as part of the business‑as‑usual design, development,

CITY

operation, and maintenance of our cities. A recent report published

by KPMG says that smart cities are resilient cities and, through the integration of physical and digital environments, we can address the gaps in resilience exposed by COVID‑19.

According to Vegacomp Consulting, in June last year there were 594 smart city initiatives in either the project, implementation or completed stage, in 87 large, medium, and small cities throughout the country, compared to only 330 projects in 45 cities recorded in March 2019. But there is plenty of work still to be done for our cit‑ ies to become smarter, healthier, greener, and more sustainable!

34 The future of food: are insects going to be part of our daily menu?

36 The challenge to find Romania’s next Vacaresti Park

38 New in town

EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES 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 | June 2021

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

Companies in Romania include digital archivation in sustainability plans

By Mihai Cristea recycling rate seen in Germany, at 67.3 percent. EAD studies show that a regular employee working in an office generates between 54 and 68 kilograms of recoverable white paper

Irina Firstova has taken on the role of Country HR Manager at Coca-Cola HBC Romania, previously having served as Country HR Excellence Manager in Russia at the same company. Irina joined the Coca-Cola HBC team in 2004 in Novosibirsk, Siberia as a Sales Coordinator and started her career as an HR professional in 2005. During her 17-year tenure in the company, she gained experience in several roles, including Training Manager, Talent Development Manager, HR Manager for Support Office, and HR Business Partner for Sales and Supply Chain teams.

Claudio Cisullo was elected as Chairman of the Board of Directors at One United Properties. He has been a shareholder and member of the company’s Board of Directors since 2020 and recently became the third-largest shareholder of the company. Cisullo is also the founder and Chairman of CC Trust Group AG, founder and Executive Chairman of Chain IQ Group AG, Chairman of ACC One Holding AG, member of the Board of Directors of Ringier AG, and member of the Board of the Swiss Entrepreneurs Foundation. page 5

waste annually. Paper con‑ sumption has increased by 400 percent in the last 40 years and this has led to intensive logging, with deforestation in some countries. About 35 per‑ cent of trees cut down across the planet are used for paper

Bruno Amaro, CEO of EAD Digital Romania

production. In this context, the number of companies using recycling services increased

According to data from EAD,

last year ranked 26th out of 27

the largest Portuguese player

in the EU in terms of waste recy‑

on the digital archiving market,

cling rates.

globally by 17 percent last year.

Secure recycling of physical archives allows companies to protect themselves in situa‑

which also operates in Roma‑

According to data released

nia, multinational companies

last year by the European Com‑

tions of potential risk that may

concerned with sustainability

mission, in Romania’s municipal

arise in the process of dispos‑

and environmental protection

waste recycling rate was 11.1

ing of confidential documents,

are increasingly interested

percent of total waste in 2018,

as well as to ensure that their

not only in digital archiving

down from 13.2 percent in 2013.

documentation is destroyed

services, but also in document

Romania is far from reaching

in accordance with new data

recycling services. This trend

the European average of 47.2

protection rules and local

is visibly growing, as Romania

percent, with the highest waste

legislation.

Arctic’s Ulmi factory reaches 1 million washing machines milestone

By Mihai Cristea

Arctic, the leader of the Roma‑

and one of the most modern pro‑

nian home appliance market and

duction facilities in Europe.

a major contributor to the local

Opened in 2019, following

economy, marked the milestone

a EUR 153 million investment,

of one million washing machines

the production facility in Ulmi

manufactured at its Ulmi plant

integrates cutting-edge ma‑

in Dambovita county, the first

chine learning technologies and

Industry 4.0 factory in Romania

automated processes that enable

Arctic's Ulmi plant is the first Industry 4.0 factory in Romania

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NEWS 5

SofMedica expands to Hungary

By Mihai Cristea As part of its strategic objec‑

Otilia Bordei joined Avison Young as Head of Office Agency. She will be responsible for developing and consolidating the department’s position on the market, managing the agency’s relationship with office building developers, and providing consultancy for tenants. Before joining the Avison Young Romania team, Otilia Bordei worked in the Leasing & Asset team of Skanska Romania for five years.

tive of growing its business in Europe, SofMedica has announced an expansion of its territory footprint in Hun‑ gary, adding this promising CEE market to its presence in Romania, Greece, Bulgaria, and Cyprus. The scope is to consolidate its position as a leading provider of innovative technologies designed to fight the leading causes of mortality worldwide, namely cancer and cardiovascular disease (CVD).

After the proven success

SofMedica is planning a EUR 5 million investment in the Hungarian healthcare market

in implementing its business

professionals who expressed the

an installed base of approxi‑

model in the other four EU

need for access to innovative

mately 6,000 systems. The

countries where it has been

medical technologies such as ro‑

dynamic evolution of robotic

present since 1994, SofMedica

botic surgery, bronchoscopy, on‑

surgery in this region is dem‑

is planning a EUR 5 million

cology diagnostics, and ICU and

onstrated by a sustained, high

investment in the Hungarian

OR monitoring. The expansion

rate of utilisation in Greece, as

healthcare market, providing

on the Hungarian market comes

well as the recent implementa‑

public and private hospitals

along with an ambitious recruit‑

tion of successful programmes

with innovative technology,

ment plan seeking biomedical

in Bulgaria. In Hungary too,

including its flagship product,

engineers and experienced clini‑

patients will very soon benefit

the da Vinci robotic-assisted

cal sales professionals to join its

from the advantages of ro‑

surgical system.

dynamic team.

botic surgery, such as reduced

The decision of entering the

In 2020, over 1.2 million da

hospitalisation times, fewer

Hungarian market is a result

Vinci procedures were per‑

postoperative complications,

of discussions with healthcare

formed around the world using

and higher quality of life.

Claudiu Fuiorea is the new CFO of Macromex.

With a career of over 20 years, Claudiu Fuiorea has held important positions both nationally and internationally, in companies such as Mondelez International (Kraft Foods), Ursus Breweries Romania, and Asahi Group (formerly SAB Miller), where until recently he held the role of Vice President of Finance.

employees to work side by side with robots, leading to a 30 percent increase in productivity.

Over 200 robots were part of the production process of the one million Arctic washing machines.

The 700,000-sqm Ulmi pro‑ duction hub boasts automated material handling and storage systems that allow parts to be transported from the warehouse to the assembly line with selfdriving vehicles. Over 70 percent of production operations are based on self-determined and self-managed systems.

Adina Trandaf is the new Managing Director of Oxygen, tasked with managing the company’s operational activities, implementing its strategic vision, and achieving its business objectives, while coordinating a team of nearly 60 communication professionals. Adina Trandaf has been with Oxygen for almost ten years, the last six of which were in the Client Service Director role.

www.business-review.eu Business Review | June 2021

6 REAL ESTATE

Office market starts to recover as employees return to the workplace The office market is showing signs of recovery from the pandemic period, which forced many employees to work from home. Transaction volumes increased in the first quarter of the year, including the share of pre-lease contracts. New office buildings were also completed in the Politehnica area of Bucharest. The recovery is expected to continue, since the gradual lifting of restrictions started in May and will carry on over the summer.

By Aurel Constantin of the Campus 6.2 building, part of the larger Campus 6 project developed by Skanska in the Politehnica area, and of the Millo Of‑ fices, developed by Forte Partners in central Bucharest, with the two buildings adding up to a total area of almost 30,000 sqm. By comparison, in the first quarter of 2020, Bucharest had deliveries of new office spaces totalling 79,000 square meters. However, this year's deliveries will be above 2020’s - when 155,000 sqm were completed - as another approximately 220,000 sqm of new modern office space are due for delivery by the end of this year.

The commercial leasing stock of office buildings in Bucharest totals about 2.98 mil‑ lion square meters, with other buildings with an area of approximately 150,000 sqm being occupied by the owners, while projects with a total area of 370,000 sqm are currently under construction and scheduled for delivery The first quarter of 2021 saw the delivery of the Campus 6.2 building, part of the larger Campus 6 project

T

between 2021-2023.

In this context, the contractual office space vacancy rate is 13.5 percent, with a significant

he volume of leasing transactions on

their office locations by as long as possible –

difference between class A (10.7 percent)

the Bucharest office market reached

which led to an 40 percent annual decrease

and class B (22.1 percent) office buildings.

48,000 sqm in the first quarter of

of the transactional volume – we can now see

Although we are witnessing the gradual re‑

2021, a 9 percent decline from the similar

the first signs of stability, with a 29 percent

turn of employees to offices, the use of space

period of the previous year, when the CO‑

share of renewal contracts compared to

currently remains at a relatively low level of

VID-19 pandemic was still in its early stages in

an annual average of 45 percent in 2020.

about 40-50 percent, given that most compa‑

Europe, according to research by real estate

Moreover, the share of pre-lease contracts

nies are continuing their work from home or

consulting company Cushman & Wakefield

grew from 20 to 46 percent, which shows

hybrid schemes.

Echinox.

that some companies have outlined their

“We believe that the first three months of

However, compared to the second half of

post-pandemic working policies and are now

this year have brought positive signs, as we’re

2020, when the market witnessed low levels

in a better position to make decisions for the

noticing a significant number of pre-lease

of leasing transactions due to companies

medium and long term.

transactions of office spaces under construc‑

postponing important decisions regarding

The first quarter of 2021 saw the delivery

tion, after a 2020 that was generally marked

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COVER REALSTORY ESTATE14 7

by delayed decisions regarding the occupancy

a new maturity phase, with diverse projects

diversify into this seemingly pandemic-proof

of new office spaces. We’re also seeing a sig‑

developed by both international developers

sector (28 percent) and away from the more

nificant decline in COVID-19 cases and a posi‑

and local players, with high quality standards

challenged retail and hospitality sectors (15

tive evolution of the vaccination campaign,

for buildings and care for the environment, as

percent).

two key elements that will favour many

well as stable tenants with well-defined plans

employees’ return to the office, as they will

and increasingly more sophisticated require‑

market, where we had a volume of EUR 40

feel safer at work, an essential factor in the

ments,” said Rodica Tarcavu, Industrial Agen‑

million going towards the office segment

return to a certain normality,” said Madalina

cy Partner at Cushman & Wakefield Echinox.

through Bucharest Financial Plaza and a

Cojocaru, Office Agency Partner at Cushman

Currently, developers are building new

“This is well applicable to the Romanian

2,500 sqm office building in Brasov closed

spaces with a total area of over 450,000

deals, representing 50 percent of the total Q1

square metres. Bucharest remains the most

2021 transaction volume. A rather unex‑

ects under construction are One Cotroceni

active market, accounting for about 55

pected share of 25 percent went to the hotel

Park, J8 Office Park, Globalworth Square, U

percent of the spaces under development.

segment through Ramada Majestic and the

Center, Miro Offices, Tiriac Tower, Dacia One,

Cluj-Napoca, Timisoara, and Brasov,

Equilibrium II, @Expo or Sema London &

three of the most important

Oslo, with developers already having signed

regional logistics markets,

pre-lease contracts for about 60 percent of

along with Craiova,

the spaces.

where a new Profi

& Wakefield Echinox.

Some of the most important office proj‑

Opera, Central, and Venezia portfo‑ lios, marking two new investor entries on the local market and bringing back interest in the hotel

logistics centre will

market and the soon

INDUSTRIAL AND LOGISTICS

be built, are also

expected recovery

The local industrial and logistics market start‑

major markets.

of this segment The remaining

double compared to the similar period of the

INVESTMENT MARKET STILL RECOVERING

previous year, according to an analysis by

The first quarter of

Cushman & Wakefield Echinox.

2021 ended with invest‑

in Romania.

ed 2021 on a positive trend, with the transac‑ tional volume for the first three months of the year reaching almost 200,000 square metres,

Contract renewals represented only 16 per‑

ment transactions totalling

share went nearly equally to retail and industrial & logistics assets through the Lidl portfolio and Solo Iasi transactions. About 30 percent of

cent of the transactional volume, so demand

EUR 85 million in Romania, a

was primarily driven by new contracts and

42 percent decrease compared to the first

relocation projects. More than 40 percent of

three months of 2020, when the country had

figure for the investor pool in Romania,” ex‑

transactions were pre-leased, so the mar‑

not yet been significantly impacted by the

plains Anca Merdescu, Associate Director for

ket will continue to grow at a steady pace.

pandemic, according to Colliers’s latest “CEE

Investment Services at Colliers.

Bucharest attracted almost 60 percent of the

Investment Scene Q1 2021” report. Despite

Furthermore, Colliers consultants have

transactional volume, but significant activity

the slow start, investor sentiment suggests

noticed increased interest in real estate from

was also recorded in Timisoara, Pitesti and

that there will be a strong pick-up in activ‑

various investors, even from some who were

Brasov.

ity in the second half of the year, subject to

not necessarily specialised, but looking to

progress in fighting the pandemic and open

diversify their asset classes. Key criteria for

travel policies.

such interests are definitely long-term leases

Deliveries of new spaces in the first quar‑ ter of 2021 were limited. The most important development was the 10,000 sqm extension

Overall, Central and Eastern Europe (CEE)

the investors were domestic, a still balanced

of more than 10 years and a financially solid

of the Decathlon distribution centre inside

investment flows were down by almost 48

tenant. Such investment opportunities are

the WDP logistics park located at the intersec‑

percent from Q1 2020, at about EUR 2 billion.

highly regarded and have a strong potential to

tion between the Bucharest - Ploiesti highway

Poland remained the regional leader, with

set off yield compression. Bucharest has some

and the Capital ringroad. One of the largest

investment volumes accounting for 65 per‑

of the highest yields in the region for the

transactions of early 2021 was also signed

cent of the overall CEE6 total, followed by the

office sector (7 percent), compared to at most

within the same project, when eMag leased

Czech Republic and Hungary, with shares of

4.25 percent in Prague, 4.7 percent in Warsaw

11,000 sqm.

14 and 11 percent respectively.

or 5.25 percent in Budapest. Going forward,

The office sector was dominant all over

rents will remain relatively stable, according

e-commerce sectors are the most active on

the region in the first quarter of 2021 in terms

to Colliers International, with prime headline

the industrial and logistics market and we

of transactional activity, with a share of 50

still around EUR 18/sqm in the office sector in

are confident that they will be the engine for

percent of the total volume of investments,

Bucharest (and a regional average of EUR 14/

future logistics park developments in Bucha‑

followed by industrial and logistics spaces,

sqm), and between EUR 11-14.5/sqm in other

rest and other cities. This sector is entering

which are up significantly as investors

cities in the country.

“Companies in the retail, distribution, and

8 COVER STORY

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COVER STORY 9

AT BOSCH, CHANGE AND EVOLUTION ARE OMNIPRESENT ACROSS ALL BUSINESS SEGMENTS Bosch Romania managed to get through over the pandemic year with positive results, mitigating the short-term impact of the health crisis. The company’s consolidated sales grew by 3 percent to RON 2.2 billion, while its employee count reached 8,160. Business Review talked to Mihai Boldijar, General Manager of Robert Bosch and Representative of the Bosch Group in Romania, to find out more about what the company did to overcome the crisis.

By Aurel Constantin How did business develop for the Bosch Group in Romania in pandemic year 2020? What did the company do in response to the crisis?

Despite the pandemic’s short and medium-term effects and the lack of predictability dominating the business environment, the Bosch Group achieved remarkable results in Romania. All our business segments have performed better than expected. Last year in March, when the lockdown began, we managed to rapidly mobilise all of our existing resources and developed several working scenarios designed to secure the continuity of business operations. As a first move, we enforced various preventive and protective measures that helped us safeguard both the physical and mental health of our em‑ ployees and switched to remote working wherever the job descrip‑ tion allowed it. In our manufacturing operations, measures were adapted to the nature of the activity. In terms of extra measures, we installed thermo-scanning gates at both our manufacturing sites and we shifted working schedules to avoid overcrowding. In mid-April, we decided to temporarily ramp down our local production activi‑

www.business-review.eu Business Review | June 2021

10 COVER STORY

ties and implemented the Kurzarbeit solution as well as the furlough

Goods business sector performed well last year, with the Bosch

scheme – a decision that helped us secure the jobs of all our col‑

Power Tools division registering a double-digit growth on all product

leagues and ensured a smooth and rapid return to business as usual.

segments, and the Home Appliances segment (BSH) continuing

In the second half of 2020 we ramped up production, which helped

the trend of recent years by also achieving double-digit growth in

boost the pace of our manufacturing operations and led to the

2020, for both large and small domestic appliances. Moreover, in the

creation of extra jobs. Today, I am happy to say that as a result of the

Industrial Technology sector, Bosch Rexroth, is a reliable partner for

remarkable efforts made by the entire organisation, the extraordi‑

energy efficiency projects, offering customers smart industrial solu‑

nary commitment and resilience of our more than 8,000 colleagues,

tions such as CytroBox, a compact hydraulic unit that can be easily

and also by virtue of the support and understanding of our business

integrated into connected manufacturing facilities and requires up

partners, we have succeeded in overcoming the immediate effects

to 80 percent less energy than conventional drives. Additionally,

of the pandemic and ended 2020 with RON 2.2 billion (EUR 448

we’re making good progress in digitalizing in-house operations

million) in consolidated sales and RON 6.8 billion (EUR 1.4 billion)

and processes, starting with the HR department and going up to

in total net sales. Moreover, we remained committed to our plans

our Bosch Service Solution division in Timisoara, which is already

and further consolidated our position in Romania by investing over

running multiple programs in the realm of digital transformation,

RON 487 (roughly EUR 100 million) during 2020. This is the type of

offering tailored software solutions using new technologies like

progress that gives us confidence for the current business year.

Robotic Process Automation or artificial intelligence, which increase service quality and delivery efficiency. Needless to say, our factories

What are the main business drivers for Bosch in 2021?

How will this year’s expected economic growth help the company?

In these turbulent times, everyone is talking about change: in business, politics, soci‑

have been using Industry 4.0 solutions for a while now.

We’re very fond of the connected life concept and I am convinced that with the help of AIoT, we are making our own mark on the digitalization megatrend.

ety. For Bosch, change and evolution have always been omnipresent in all business segments. We see pursuing and embracing change as being not just about readjusting and recalibrating our core business, but also about transforming challenges into new busi‑ ness opportunities. In terms of climate change, for instance, our response has been to pursue carbon neutrality, and by the end of 2020, all 400 of our worldwide locations had become carbon neutral. There is

Can you tell us about Bosch Romania’s involvement in local education projects?

Bosch is actively involved in many educa‑ tion projects in Romania, and our aim is to support young talents in their career path and attract them into working with us. Our commitment to education is growing constantly and over time, we have managed to create strong liai‑ sons between the company and several prestigious educa‑

still a long road ahead, but we are already harvesting upon our prog‑

tional institutions, both at the higher education and pre-university

ress, while staying true to our beliefs and promises, providing lasting

levels. I would like to emphasise the achievements of last year, when

technological answers to environmental questions. The pandemic?

the Cluj Engineering Centre and the Babes-Bolyai University in Cluj-

Well, we saw molecular diagnostics as a growth area and it paid off.

Napoca launched a new Master’s programme called “High perfor‑

IT and AI? Our answer is industrial AIoT by Bosch. Connectivity,

mance computing and big data analysis,” and our Blaj plant officially

electrification, hydrogen, and alternative fuel-cells are the mega‑

launched the Bosch Academy – a programme conducted in close

trends we’re using to build our medium-long-term business case and

collaboration with the University of Targu Mures, providing students

they are acting as main business drivers for 2021 as well. Embracing

with a wide perspective over the latest trends in the automotive

change is what gives us stability, and as the economy slowly recov‑

industry. Likewise, our plants in Cluj and Blaj have both inaugurated

ers, we will probably see the Bosch business on an upward trend

some inspirational study areas within the campuses of the Technical

once again. We will continue to focus on the megatrends of the mo‑

University in Cluj-Napoca, the “1 Decembrie 1918” University of Alba

ment, and on making the most of everything that comes out way.

Iulia, and the “George Emil Palade” University of Medicine, Phar‑ macy, Sciences and Technology from Targu Mures, while the plant

Which are the most important strategic directions at the Bosch Group level? How is the push towards digitalization being applied in Romania?

in Cluj continues its long-term collaboration with the Technical Uni‑

We are making great strides here, but I find it relevant to highlight

programmes, the dual school system continues to be greatly suc‑

the fact that digitalization goes hand in hand with sustainability. In

cessful. Since 2013, about 500 high school apprentices have received

2020, for example, Bosch sold some four million connected home

market-oriented vocational education as part of the dual school

products worldwide – household appliances, power tools, heating

programme we are conducting at our plants in Cluj and Blaj. On the

systems, and smart home devices. In Romania, too, the Consumer

other hand, we’re looking closely into sciences like economics and

versity of Cluj-Napoca by equipping an Industry 4.0 laboratory and training qualified staff for the future of work. As for pre-university

www.business-review.eu Business Review | June 2021

related fields, and in this context our division in Timisoara, Bosch

COVER STORY 11

Service Solutions, recently launched the Controlling Academy, an

the company and its products more sustainable and environmentally-friendly?

intensive paid programme for Master’s degree students in the fields

Bosch is pressing ahead with its climate action targets as planned,

of finance, management, accounting, and computer science.

and I’ve already mentioned the fact that the company’s more than 400 locations worldwide have achieved carbon neutrality. This

Before the pandemic, Romania was dealing with a workforce shortage. What’s the situation like today after so many things have changed?

was a major milestone for us and it turned Bosch into the first

Labour shortage continues to be one of Romania’s greatest prob‑

also plan to cut 15 percent of CO2 emissions along our entire value

lems, but the context is wider than just the overall lack of personnel.

chain, from suppliers to customers, by 2030. Compared to the level

We are talking about specialised and qualified workforce, profes‑

recorded in 2018, this goal represents a decrease of 67 million metric

sionals with skills which are suitable for different industry sectors.

tonnes of carbon dioxide emissions. We are pioneers in sustainable

Regardless of the current situation and the fact that some companies

manufacturing in Romania, too: we have already implemented a

have found themselves in the position of reducing staff, we’re still

series of projects focusing on energy efficiency and energy con‑

seeing many young people leaving the country to pursue opportuni‑

sumption monitoring at our plants in Cluj and Blaj, replaced all

global industrial company whose locations no longer have a carbon footprint, and that includes our manufacturing sites in Romania. We

ties abroad. We’re facing an exodus which I believe can‑ not be stopped unless large organisations and the public sector work together. What Bosch and other multina‑ tional companies are doing nowadays in the educational sphere, both in the university environment as well as in the pre-university cycles, has much to do with keeping talents in Romania and offering them decent jobs, with real opportunities for growth and development. We’ve managed to find a solution for the closing of vocational schools – one of the biggest obstacles to finding special‑ ised workforce – through the dual school programme I mentioned earlier, and we’ve made significant invest‑ ments to expand the project in both our Cluj and Blaj plants. Nevertheless, it is vital for authorities to get more involved.

lighting systems with LED technology, and we are now purchasing electricity from 100 percent renewable sources. Furthermore, the

How do you keep your employees motivated? Do you offer them specific benefit packages? How are all these benefits received?

manufacturing unit in Blaj has recently started to produce its own

In terms of employee engagement, I see trust and transparent com‑

generate an amount of green energy that’s equivalent to the electric‑

munication as the most important incentives. The past year has

ity consumption of 50 private homes.

green energy by installing several photovoltaic panels that actually

proven that trust is something that works better when it is offered, not gained, and that the best way of successfully navigating through turbulent times is active communication. We trust our colleagues

Where do you see Bosch in 5 years? Which business sectors do you believe will experience major changes in the coming period?

to work in the best interest of the organisation, and we rely on their

We see Bosch bringing something unique to the table, as we are

judgement and decisions. On the emotional side, we truly want

already able to combine broad domain knowledge with expertise in

them to feel safe, motivated, and appreciated at their workplace, so

IoT and AI, and the result is AIoT. Connectivity provides knowledge

we are constantly working to improve the benefits package we offer,

about the way things are used, and if we use artificial intelligence

adapting it to their current needs and requirements. Of course, their

methods to evaluate this knowledge, we can develop new features

health and safety are top priorities and we’ve been very focused on

and services, which in turn multiply the benefits our products offer.

these lately, from offering private healthcare subscriptions to all our

This enables us to close the gap in the value creation cycle between

employees even (before the pandemic) to the more recent opening

our engineers’ and our customers’ daily lives. One way to look at

of our own Bosch Medical Centre in Blaj and a COVID-19 vaccination

it is that this daily life becomes a productive part of our develop‑

centre in our Cluj plant, where all our colleagues working in the Cluj

ment work. For example, in the future we will be able to use cloud

area were offered the vaccine, as part of a collaboration with local

algorithms to dynamically estimate an e-biker’s arrival time based

authorities.

on empirical values rather than just on a static map. Using field data to develop additional customer benefits will become a core compe‑

Concern for the environment is still on the rise. What actions has Bosch taken in this regard and how do you intend to make

tence for Bosch, and our stated aim is making Bosch a leading AIoT company.

www.business-review.eu Business Review | June 2021

12 MAIN STORY

Smart cities as foundation to sustainable future With a growing urban population, cities in Romania have one way to cope with this big challenge: by becoming smarter and adopting a sustainable development model.

In light of the pandemic, smart city transformation can no longer be seen as a “nice to have”; it is a must for cities of all sizes.

By Anda Sebesi

I

n recent years, the smart city concept has entered on the agenda

says Eduard Dumitrascu, president of the Romanian Smart City

of an increasing number of countries worldwide, including

Association.

Romania. Although a clear definition of this concept may still

According to Business Dictionary, a smart city is an urban area

be under debate, one thing is clear: a smart city implies a series of

that creates a sustainable economic development and a high quality

interconnected industries and a joint effort by citizens, central and

of life as a result of great performance in several key sectors like the

local authorities, academia, and private companies. “A smart and

economy, mobility, environment, people, life, and government.

sustainable city is an innovative city that uses data and communica‑

Yet the pandemic has changed the way societies and cities work.

tion technologies, as well as other means to improve the quality of

According to Smart City Transformation in a post-COVID world

life, the efficiency of urban operations and services, and competi‑

study conducted by KPMG, smart city transformation can no longer

tiveness, in order to meet the needs of present and future genera‑

be seen as a “nice to have”. COVID‑19 has resulted in us all experi‑

tions from an economic, social, and environmental perspective,”

encing different levels of isolation and a lack of connectedness. As

www.business-review.eu Business Review | June 2021

MAIN STORY 13

we emerge from the immediate crisis, there is a unique opportunity

This poses a challenge for EU cohesion, since the inability to close

to improve connection by embedding digital infrastructure and

investment gaps primarily affects municipalities in less economi‑

smart city initiatives as part of the business‑as‑usual design, devel‑

cally developed regions. “For the EIB, investment in smart cities

opment, operation, and maintenance of our cities.

and regions is a way to respond efficiently to its social and territorial

“Smart cities are resilient cities and, through the integration of

cohesion mandate by supporting the upgrade of local economies in a

physical and digital environments, we can address the gaps in resil‑

quickly evolving digital world. Cities and regions are key partners for

ience exposed by COVID‑19. By harnessing data and digital technolo‑

the EIB. The EU Bank supports projects to make cities more sustain‑

gies, we can re‑engineer flourishing, inclusive cities which are able

able (energy transition, climate adaptation, and efficient mobility),

to adapt in the face of change,” says the report.

inclusive (housing, health care, and integration of migrants), and

The same report notes that importantly, a successful re‑imagina‑

competitive (education, skills development, and digital transition).

tion of cities requires adopting a human‑centred design approach

With its advisory, the EIB can help cities with their investment plan‑

that focuses on tapping into the collective intelligence of communi‑

ning and coordination, which is often a weak spot for municipalities

ties in order to understand the human

across Europe,” the EIB representative

experience from the diverse perspec‑

adds.

tives of the people who live, work,

The city of Oradea is an excellent

learn, and play in cities every day. This

example on making the best use of

approach holds even greater value at a

the EIB advisory and lending support,

time when we are seeing an increased

in combination with EU funds. Since

focus on the role of local neighbour‑

2007, Oradea and EIB have signed three

hoods in strengthening community

framework loans to support urban

resilience.

regeneration and geothermal schemes,

Municipal infrastructure gaps

as well as the acquisition of public

remain prevalent in the European

transport rolling stock. “We are now

Union, especially for digitalization and

working on a fourth loan to support

climate change, particularly in Central

Oradea in achieving its ambitions of be‑

and Eastern Europe. The EIB Munici‑

coming a green and digital Future City:

pality Survey 2020 highlights that even

EIB-EU JASPERS advisory has helped

though municipalities have focused

prepare the zero-emission buses pur‑

on developing digital, urban trans‑

chase scheme, including the EU grant

port, and social infrastructures, their

application. The EIB's involvement will

infrastructure investments remain

accelerate EU funds absorption and

insufficient. Other key factors are the length of regulatory process,

improve the promoter's financial profile by diversifying its funding

regulatory uncertainty and lack of technical capacity to assess criti‑

base, increasing its debt maturity structure, and lowering its average

cal aspects of infrastructure, such as affordable housing or electric

cost of funding,” Zanin concludes.

charging stations for vehicles.

“The first wave of the coronavirus pandemic reinforced the

COMMUNITY INVOLVEMENT CRUCIAL FOR SMART CITIES

demand for more digital investment while rekindling the need for

According to Victor Iancu, advisory director at KPMG Romania, a

social infrastructure. How municipalities address green and digital

smart city cannot be imagined without actively involving the com‑

challenges affects their outlook on climate change and is also related

munity, its citizens. The operating model of a smart city combines

to local corporate innovation in these areas,” says Lara Tassan Zanin,

technology with citizen interaction, the latter being analysed and

head of the EIB Group Representation in Romania.

understood in advance, down to the smallest detail.

According to Zanin, municipal digital sophistication (such as

“For example, the way a technology company carefully and sys‑

providing online public services) and green administrative capacity

tematically studies the types of potential customers on the market,

(such as adherence to green budgeting) are associated with greater

their needs, aspirations, and behaviours, to ensure the widest pos‑

confidence for municipalities to assess the risks of the transition

sible adoption of the products and services they create (and achieve

towards a low-carbon emission economy. “Municipalities that have

commercial success), is similar to how cities must position them‑

jointly developed these attributes are also less pessimistic about the

selves when planning and creating smart infrastructures for their

physical risks posed by climate change. The share of firms innovat‑

citizens,” Iancu suggests. He adds that in any given project, putting

ing and adopting technologies in digital and green areas rises with

people first ensures that meeting the real needs of the community

the share of municipalities that are digitally sophisticated and have

remains a priority, without falling prey to the temptation to come up

developed green administrative capacities,” she says.

with generic, mass solutions. “This approach not only sets out very

In terms of funding, municipalities are less able to close invest‑ ment gaps if they are more reliant on capital transfers or grants.

clearly the ‘why’ and ‘who’ the facilities of a smart city address, but citizens also become an integral part of the solution, get ownership

www.business-review.eu Business Review | June 2021

14 MAIN STORY

in the process, and gain trust. All of these ensure the right targeting

from retail to office, hotels or conference centres – a mix designed

of smart solutions, leading to the success of smart city investments,”

to deliver wellbeing and make people’s lives easier,” says Raluca

Iancu argues.

Munteanu, business development manager at Iulius.

He also suggests that the above aspects require a mindset shift

For example, the developer’s premium office spaces are inte‑

in the way local administrations relate to their communities, to the

grated within retail and entertainment concepts with a multitude

citizens they serve. This new paradigm means looking at citizens in

of shops, services, medical offices, food courts, and even schools

a similar way to how companies look at their customers and asking:

and kindergartens. “All this is designed to bring people together and

who are they (beyond demographics), what are their specific prob‑

make the buildings work for the people, not vice versa. However,

lems, what experiences do they seek,

we believe that the highlight of all our

what motivates them, how do they

projects are our parks and gardens,

choose what they choose, what exactly

where local communities now meet

inspires and supports their loyalty?

and spend time together. I think you

The answers to these types of ques‑

could even say it’s one of our trade‑

tions then turn into design criteria that

marks,” Munteanu says, pointing out

contribute to the efficient and relevant

that the company’s care for the envi‑

creation of strategies, plans, and smart

ronment has been officially acknowl‑

projects.

edged, as all 13 of its office buildings in

“Administrators of cities or regions

the Iasi, Timisoara, and Cluj-Napoca

must overcome the specific mentality

business districts (part of the United

of monopoly-type organisations and

Business Center concept) are either

think strategically about the unprec‑

LEED Platinum or Gold certified.

edented socio-economic changes that

“We continue firmly on the path of

uncover a new changing factor, one rather specific to the private

green developments with Palas Campus, our new mixed-use project

sector: competition. By gradually becoming growth poles (with

under construction in Iasi. It recently obtained the first green credit

their own economic ecosystems), cities and regions are beginning to

in Romania, in the amount of EUR 72 million from the IFC, a divi‑

compete with each other for investment and for retaining or attract‑

sion of the World Bank. This means that Palas Campus will be EDGE

ing talent and qualified human resources. This is a reality that we

certified (Excellence in Design for Greater Efficiencies) and it is also

have been seeing in many developed countries, and it has started to

pending a LEED certification,” Munteanu adds.

appear in Romania as well,” the KPMG representative adds.

In countries with a long tradition

She also notes that the value sus‑ tainability adds to a project is obvious in many ways. “Green buildings yield

in the field, city administrators have

significant maintenance and opera‑

changed their approach and are now

tional cost savings because they spend

co-creating smart communities with

10 percent less energy and 20 percent

their citizens. There, strategic and

less water than traditional build‑

development agendas include syner‑

ings. Moreover, they carry a 7 percent

gies between technological and human

increase in asset value over traditional

coordinates (“citizen centricity”), an

buildings.”

essential aspect for encouraging insti‑ tutional and social development, along with physical and economic urban

MOBILITY SOLUTIONS AT THE CORE OF SMART CITIES

infrastructure. “Today, increasingly smart cities stand out and are

A smart city also implies the use of green transportation and mobil‑

differentiated by the experiences they offer to citizens,” Iancu notes.

ity solutions that are harmless for the envrionment, whether we’re talking about public transportation or personal vehicles. One good

BUILDING COMMUNITIES: A KEY TO SMART CITIES

piece of news for public transportation comes from ATP Trucks

Building communities around large real estate projects is one of

Automobile, the Romanian transportation vehicle manufacturer

the biggest achievements sought by developers as such projects go

which announced in April the launch of its electric bus prototype

beyond their basic functionalities and offer a real customer experi‑

called UpCity. It has an autonomy of 200 kilometres which can be

ence. “Our mission is to create genuine urban regeneration projects

extended up to 360 kilometres, it needs 30 minutes for fast charging

and developments that go beyond the limits of mere shopping

and up to 3 hours for regular charging, and it can be adapted to the

centres or office buildings. We like to create spaces and places where

local needs of any city. German manufacturer ZF Friedrichshafen

communities can be nurtured and destinations that can trigger

AG and DANA GK Drive System are among the car parts suppliers for

growth across the region. Our projects combine a set of various uses,

ATP Trucks Automobile. “The innovation strategy that we launched

www.business-review.eu Business Review | June 2021

MAIN STORY 15

with the production of the first ATP Trucks products has consolidat‑

Bruxelles, Paris, Lisbon, London and Madrid – to be made using

ed our position on the Romanian market. We are looking to identify

electric cars by 2025. As for Romania, in March 2018, Bucharest be‑

partners in Romania whose products could be integrated with our

came the first Central and Eastern European city to get Uber Green,

mobility systems,” says Mircea Cirt, the president of ATP Group.

a ridesharing service with fully electric cars. According to Automar‑

In recent years, large auto manufacturers have directed efforts towards transforming their products into environmental-friendly

ket.ro, over 225,000 passengers in Romania have travelled with Uber Green and covered over 3 million kilometres by September 2020.

brands. For example, the Renault brand has moved into a new era and launched its own “Nouvelle Vague”, bringing modernity to the

EV INFRASTRUCTURE IS VITAL

European automotive sector by turning into a Tech, Service, and

Though Romanians are increasingly interested in buying an electric

Clean Energy brand. This move is closely connected to the fact that

car, the charging infrastructure needs significant further develop‑

for more than 10 years, Groupe Renault has garnered expertise in

ment in order to keep up with the demand for such cars. At the

electric vehicles which translates into more dynamic and efficient

beginning of this year, Telekom Romania was the first telecom op‑

hybrid motors.

“First, it is about a tech brand

erator to announce that it would install EV charging stations in several cities

with an ecosystem called ‘Software

across Romania, in response to the

République’ that will allow Renault to

new auto trends and to the increasing

build European know-how and defend

number of EVs on the local market.

its sovereignty in key technologies.

“Smart City Solutions is a strategic

Second, it is a service brand that offers

business development direction for the

the best connectivity and high-tech

Deutsche Telekom Group, with Electric

services embedded into our vehicles.

Vehicle Charging Solutions playing a

Renault will be the first carmaker to

very important role in the portfolio.

bring Google services to mass-market

Electric Vehicle Charging is an integral

cars. Third, it is a Clean Energy brand

part of the growing e-mobility value

becoming a leader of the energy

chain, and it can further enhance local

transition through its leadership on

and regional mobility concepts. To

the electric market, with market-ready

enable interregional mobility without

end-to-end hydrogen solutions for

‘range anxiety’, it is essential to devel‑

LCVs to reach the greenest mix in the

op not only a local but also a regional

European market,” says Cecilia Tudor,

and nationwide EVC network,” says

managing director at Renault South

Alexandru Nen, IoT solutions and

Eastern Europe. According to her,

smart city architect at Telekom Roma‑

Renault provides the full Electric experience with the E-Tech vehicle

nia. He adds that implementing a convenient EVC infrastructure will

range, services, and aftersales. This means that the entire Renault

further expand the use of electric vehicles in a city. This, in turn,

Network across the country will allow customers to charge their

helps a city reduce its carbon footprint while helping policymakers

E-Tech vehicles, whether they are fully electric or hybrids. “From

and authorities pursue environmental protection goals with trace‑

the customer’s perspective, we can firmly say that the total cost of

able information. “Electric Vehicle charging from Telekom offers

ownership will be lower than it would be for an ICE (Internal Com‑

a smart and comprehensive solution for all cities and regions that

bustion Engine) vehicle,” Tudor says.

would like to set up and operate a charging infrastructure. Telekom takes over the planning and construction of the highly modern

CAR SHARING GOES GREEN

charging infrastructure systems as well as the associated electric in‑

The car sharing market is growing rapidly, with operators demand‑

stallation and maintenance. A software for the operation of charging

ing an affordable electric city car. According to Tudor of Renault,

stations and end-user management is included in the services,” he

there are currently around 15,000 electric car sharing vehicles on

says. He adds that the company brings expertise from the imple‑

the road in Europe, with a projection of 150,000 cars in the segment

mentation of many EV Charging projects across the entire Deutsche

by 2025, a market multiplied by 10 in 5 years. “Renault understands

Telekom footprint, from small communities to major cities, using

this well, as nearly 10,000 of the brand’s electric vehicles are avail‑

various technologies on the European Market based on best fit for

able for car sharing every day in around twenty European cities. In

specific use cases. Telekom Romania has several smart city proj‑

Romania, we already have EV fleets in the Uber and Spark car shar‑

ects either completed or currently in development, such as energy

ing platforms,” Tudor notes.

efficiency (Smart Lighting, Solar Power Energy), public safety and

Speaking of which, Automarket.ro writes that Uber announced

data collection (Smart Video Surveillance), urban mobility (Smart

a partnership with Renault and Nissan through which it aims for 50

Parking), waste management, urban area revitalisation (Smart Public

percent of its trips in seven European cities – Amsterdam, Berlin,

Furniture - Benches, Trees), and smart public administration.

www.business-review.eu Business Review | June 2021

16 MAIN STORY

Sustainable architecture makes real estate more nature-friendly Antoniu Panait, Managing Director at Vastint, the real estate development company whose buildings are all LEED Platinum certified, talks about the vital role of green buildings inside a smart city ecosystem.

By Anda Sebesi What role do green and smart buildings play in unleashing the full potential of a smart city?

floor height, great design of

A “smart” city is defined as a

waste are an important part of

city that collects relevant data

our projects and we’ve truly

and strives to use modern

added value to this concept

technology to streamline traf‑

through an internal campaign

fic, encourage public transpor‑

to save and reuse water.

tation, reduce pollution and

Furthermore, installing water

energy consumption, and seeks

purification systems that en‑

to improve citizens' relation‑

able water recycling and allow

ship with the authorities, their

us to make use of alternative

living conditions, as well as

sources of water (e.g. rainwa‑

health and educational sys‑

ter) will not only preserve this

tems. In short, a smart city uses

vital natural resource, but it

technology to improve the lives

will also protect clean water

common areas, and our great care for outdoor spaces.

Our actions to reduce water

of its inhabitants. With today’s rising concerns for the environment,

sources for the future. Increased efficiency, especially in terms of

it’s only natural for green buildings to continue to grow in popular‑

energy, through the equipment we use at both Timpuri Noi Square

ity. Whether we are talking about residential structures or corporate

and Business Garden Bucharest, is another feature of our projects

facilities, the new generation of architects and developers are finding

that we are very proud of, and it also generates lower maintenance

ways to contribute to the preservation of our ecosystem while reduc‑

costs and reduces overall operational costs. Sustainable architecture

ing carbon footprints. The development of green buildings must be

is not only more energy-efficient and healthier for its inhabitants,

synchronised with that of other elements that make up a smart city,

but it is also environmentally-friendly. By reducing our reliance on

so that the whole ecosystem grows in size and value, having a direct

non-renewable resources such as coal and oil, green architecture can

impact on the people living there, increasing their quality of life.

actually promote and maintain cleaner surroundings. Just by design‑ ing a project with a long-term investment for our future and for the

How would you describe the concept of green and smart buildings from Vastint’s perspective?

coming generations in mind, we can create a better environment that can be both secure and less intrusive to nature.

Vastint is a real estate developer who aims to build ecosystems that are as green and sustainable as possible, and that is why all of our buildings have obtained LEED Platinum certifications with such high

How important are green and smart buildings in improving the lives, health, and wellbeing of both citizens and employees?

scores.

The buildings are a small part of a whole that has many components,

To define the green building concept for Vastint, we should start

all of which must align so that citizens can benefit from a better

with the most important aspects of our projects. First, I would men‑

living and working environment. It’s a process that needs to be car‑

tion the excellent indoor environment, which definitely helps im‑

ried out step by step, and to which private and state entities must

prove employees’ quality of life and provides support to employers

contribute equally. It is clear that green and smart cities should be

in creating a great office environment, through technical details such

a priority for medium and long-term developments, and that they

as healthy air conditioning and a superior ventilation system that

should deploy new technological solutions that can help us transi‑

provides 100 percent fresh air, combined with our standard 3-metre

tion to a more sustainable future.

www.business-review.eu Business Review | June 2021

INTERVIEW 17

Industry-led vaccination campaign brings Romania closer to normal Sorin Georgescu, the president of the Romanian Slot Organisers’ Association (Romslot), tells Business Review about the gambling sector’s pro-vaccination campaign, the largest social responsibility initiative carried out so far by a Romanian industry.

By Anda Sebesi time the incidence of

soundtrack because we wanted these com‑

COVID-19 cases went up,

mercials to stand out through their simplicity.

despite the fact that we

And the reaction from customers, employees,

had no outbreaks in our

and authorities has been extraordinary.

venues and we made big investments to comply

What's the story behind the ad?

with all the rules. It was

We wanted to turn to people from the gam‑

a natural step for us to

bling industry and their stories. The stars

take part in this vaccina‑

of these ads are real people with various

tion campaign. Every

roles, from those working in game rooms to

employee who gets

middle and top management from compa‑

vaccinated becomes an

nies in this sector. They revealed their fears,

ambassador for immuni‑

their experiences, the difficulties they went

sation; they may even

through during the pandemic and their hopes

be able to convince their

for tomorrow, as well as the reasons why they

family, friends, and

got vaccinated.

customers.

We also wanted to show something that many people probably don’t know, namely

What did the investment entail and why did you choose to develop a nationwide campaign ?

the fact that we are one of the biggest em‑ ployers; we have 45,000 employees through‑ out Romania, with various specialisations.

They grow up with us, they build careers inside the industry.

The gambling industry was the first to engage in a pro-vaccination campaign among employees. How was this decision made?

We are talking about an unprecedented mo‑

These employees all have families and

bilisation of forces. We knew clearly that we

friends to whom they can pass on these mes‑

had to combine online and offline, digital and

sages. The campaign is all about people. We

The Romanian gambling industry has

classic. The first step of the campaign was

did it for all the workers in the industry, but

reached maturity. In addition to being a

showing employees and customers that we

we also thought about people from other sec‑

major contributor to the state budget, we

were united. All the big companies displayed

tors who were equally affected. To draw the

want to be connected and involved in the

the same message on their doors all over

line, we are glad that we managed to mobilise

life of the local community. We joined forces

Romania: "We’re playing Responsibly, We are

and show solidarity in such a sensitive mo‑

and mobilised an entire industry, the most

getting Vaccinated." The biggest players in

ment.

important players of the Romanian gambling

the industry posted messages on their social

sector, to develop the largest social responsi‑

media accounts every day. We are talking

What is the target of this campaign?

bility campaign you have ever seen.

about accounts with millions of followers

The ultimate goal is to return to normal, to re‑

which promoted the stories and testimonials

sume the industry’s activity. We aim to reach

of our colleagues.

a vaccination rate of over 70 percent among

We have 45,000 employees who have all felt the effects of the pandemic. Most of them are young, their lives have been turned up‑

The TV campaign was the most expensive

our employees this summer. The Romanian

side down, and the biggest problem was that

part, and it was fully funded by the indus‑

state is the ultimate winner, as this industry

they had no motivation to get vaccinated.

try. It is made up of atypical, disruptive ads.

pays daily taxes of almost EUR 2.5 million a

These people saw that the gambling industry

They contain authentic, unscripted messages

day when fully operational, and that money

was the first sector to get suspended every

of our colleagues; we even gave up using a

can be used for Romania’s development.

www.business-review.eu Business Review | June 2021

18 INTERVIEW

EIB to focus on private sector growth and FDI in Romania Christian Kettel Thomsen, European Investment Bank (EIB) Vice President responsible for Romania, talked to Business Review about the sectors the institution supports in Romania, its future plans for our country, and how it fosters sustainable investments with a lasting impact on the local market.

By Anda Sebesi What are the main targets of the EIB’s intervention in Romania in terms of sectors?

The EIB’s broad engagement in Romania supports investment across a wide range of sectors. One third of our activity in Roma‑ nia ensures that Romanian small business and larger companies can access financing to replace or upgrade their equipment with more energy-efficient one in order to cut bills and emissions, increase production capacity, and invest in people by expanding specialised training. Over the last five years, the EIB has provided nearly EUR 1.5 billion for private sector investments across the country.

Within the EIB Group, we are able to sup‑ port targeted SMEs credit lines with com‑ mercial banks and, through the European Investment Fund (EIF), to support innovative equity and venture capital investments as well as provide guarantees to expand private sector lending and back inclusive financing and micro-finance in order to tackle spe‑ cific investment gaps that are holding back

How do you think the Romanian economy has evolved since the EIB started operating in the country back in 1991?

competitiveness of Romanian business. Since

Romanian business and local entrepreneurs.

1991, the EIB has provided more than EUR 15

A recent analysis estimated that financing

billion of financing that has helped transform

provided by the EIF has backed investments

Over the last thirty years, the Romanian

economic opportunities, improve lives, and

that have generated more than 281,000 jobs

society and economy have seen immense and

strengthen essential infrastructure in Roma‑

across Romania, as support went to more

impressive changes, with both new oppor‑

nia. This has included improving road, rail,

than 34,000 local companies.

tunities and ongoing challenges. During this

maritime, and air connections and enhancing

Alongside the assistance provided to the

period, Romanian business has opened up

energy supplies, all essential for the operation

private sector, the EIB also supports signifi‑

to new markets across Europe and the wider

of small business and large companies.

cant large scale infrastructure investment

world, embraced the European Union mem‑

We have helped ensure that private

bership, and welcomed foreign investments

sector partners could invest in people and

improves lives, by upgrading transport infra‑

in all sectors.

operations by providing credit lines with

structure, strengthening agricultural produc‑

local banks and by working with Romanian

tion, improving water networks, expanding

world’s largest international public bank

universities to train skilled researchers, physi‑

clean energy generation, energy efficiency

owned directly by the 27 EU member states,

cians, and engineers for the future. Continued

and distribution, and accelerating urban de‑

has worked with private and public Romanian

support to private sector growth and Foreign

velopment. More recently, the EIB has scaled

partners to support transformational invest‑

Direct Investment are key objectives for the

up its support to tertiary healthcare and

ments that were essential for the growth and

EIB’s engagement in Romania.

higher education infrastructure and will

Over the last three decades, the EIB, the

that boosts private sector development and

www.business-review.eu Business Review | June 2021 May 2016

COVER INTERVIEW STORY 19 14

continue diversifying its portfolio towards

most affected during the pandemic. The crisis

of a new Regional Emergency Hospital in Iasi

these essential sectors, in addition to climate-

response financing schemes allow work‑

– the first state hospital to be built in Romania

friendly investments in the transport, energy,

ing capital expenses including payment of

in 30 years – and in the coming months the

and urban regeneration sectors to contribute

salaries, social security and tax, all without a

EIB expects to finalise support plans for new

to building a more resilient and sustainable

minimum maturity requirement to help miti‑

regional hospitals in Craiova and Cluj. In both

Romanian economy.

gate the economic impact of COVID-19.

education and health, the EIB advisory has been key in the upstream and project prepa‑

What are the EIB Group’s investment priorities in Romania?

How does the EIB support sustainable investment in Romania?

ration phases. Our Financial Advisory team

Last year the EIB and the EIF backed new in‑

As the Climate Bank of the European Union,

financial information in order to success‑

vestments to improve higher education, wa‑

the EIB is uniquely focused on unlocking new

fully finalise the lending due diligence. For

ter distribution, and energy efficiency across

investment that makes a lasting difference

the emergency hospitals, the EIB advisory

Romania, as well as to strengthen targeted

and supports long-term sustainable growth.

has supported the Feasibility Studies and is

financing for entrepreneurs and companies

A year ago, the EIB launched its first stream‑

now assisting the project team in the Health

in the country, following agreement of more

lined higher education financing scheme

Ministry in implementing the procurement

than EUR 800 million of new financing with

in Romania, which will fa‑

Romanian public and private partners.

cilitate and accelerate largescale new investment to

ment has included streamlined and scaled up

improve teaching, research,

financing to ensure that Romanian companies

and innovation at institu‑

can continue to make investments and that

tions across the country over

they are better prepared to face the business,

the coming years. The first

health, and economic challenges posed by

two loans have been agreed

the pandemic. Reflecting the importance of

with the Technical Univer‑

encouraging private sector investments to

sity of Cluj-Napoca and the

continue despite the unprecedented issues

“Carol Davila” University of

caused by the pandemic last year, some EUR

Medicine and Pharmacy in

600 million of new private sector support was

Bucharest, following a first

agreed between the EIB, the EIF, and leading

ground-breaking loan to

Romanian financial partners.

the Bucharest Politehnica

The EIB and EIF also backed the first ever synthetic securitisation deal in Romania,

Photo: 2021 Technical University of Cluj-Napoca

Crucially, the EIB Group’s recent engage‑

has helped universities prepare the necessary

University in 2019.

The new investment will help accelerate

of design and construction works, as well

which will strengthen specialist leasing

strategic development, enhance research

as many other tasks linked to this complex

finance and enable Romanian companies

facilities, and strengthen education to benefit

landmark infrastructure.

to upgrade manufacturing equipment and

students and researchers in the coming years

transport fleets. This enhanced engagement

and make a significant contribution to im‑

to back investment by Romanian companies

proving skills which are essential to enhanc‑

Can you talk about the EIB Group‘s environmental actions?

includes targeted business investment, spe‑

ing economic and social growth in Romania

As EU’s Climate Bank the EIB adopted a de‑

cialist schemes to facilitate leasing by agricul‑

and slowing down the brain drain of young

tailed Climate Bank Roadmap last year, which

ture, manufacturing, and service companies,

Romanians leaving the country and taking

will ensure that all EIB-backed projects, not

and more inclusive access to finance across

their skills with them.

just energy investments, contribute to cutting

Romania in remote regions and by vulnerable communities.

The EIB is also in talks with other higher

carbon emissions and adapt to a changing

education institutions across Romania to

climate. This will increase the EIB’s financing

support their investment plans and al‑

for climate action and environmental sustain‑

to continue their investments is essential

low university investment to benefit from

ability from 30 to 50 percent.

for Romania to overcome the economic,

long-term financing and the EIB’s unique

employment, and social challenges caused

technical experience in education investment

come the first Multilateral Development Bank

by COVID-19. Hundreds of companies across

across Europe. Health services in Romania

to be fully aligned to the Paris Climate Agree‑

Romania are taking advantage of the EUR

are also being strengthened following many

ment and will ensure more ambitious support

190 million of private sector financing pro‑

years of technical engagement with the EIB’s

for investment across Europe and around the

vided by the EIB through CEC Bank, Intesa

specialist teams in Bucharest to ensure that

world to accelerate climate action, cut carbon

Sanpaolo Bank Romania, Unicredit, and

new financing has a lasting impact. The EIB

emissions, and create new jobs in the green

Sogelease to support the sectors that were

recently agreed support for the construction

economy. Since 1991, the EIB has provided

Enabling companies across Romania

The Roadmap will enable the EIB to be‑

www.business-review.eu Business Review | June 2021

20 INTERVIEW

more than EUR 1.2 billion for energy invest‑

and solvency relief to the market. Develop‑

strengthen the competitiveness of Romanian

ment, including gas and power distribution,

ing good, bankable projects on the ground

business. Reducing investment gaps is pos‑

harnessing wind energy, and implementing

is essential though. EIB advisory services,

sible, but continued investment is key.

large scale energy efficiency and energy reha‑

provided under the Advisory Hub, such as

bilitation schemes across Romania.

ELENA or JASPERS, can help get projects off

In Romania, this will mean that the EIB will aim to scale up energy efficiency invest‑

the ground.

The EIB’s advisory also supports Roma‑

What should be Romania’s investment priorities?

Across Europe and around the world, the

ments by backing larger programmes with

nian authorities in improving the regulatory

pandemic threatens to delay long-term eco‑

local banking partners and using both EIB

environment. The EIB has joined the Green

nomic and social development, creating a lost

and EU financing. The EIB has also submitted

Finance Working Group, led by the Na‑

generation of young people who are missing

a number of policy recommendations to the

tional Bank of Romania and includingvarious

out on key skills and jobs, and causing the

Romanian central bank to boost investment

government bodies and commercial banks,

private sector to delay crucial investments

in both renewable energy and energy effi‑

and had made specific recommendations to

because of business uncertainty or challenges

ciency and to support Romania’s National En‑

unlock and boost green financing across the

in accessing long-term financing.

ergy and Climate Plan. In the coming years,

country. Furthermore, the EIB has advised

Romania has boldly responded to the CO‑

the EIB will play a key role in implement‑

on the improvement of Romania’s energy

VID-19 crisis, with fewer Romanian compa‑

efficiency legislation.

nies having delayed investments compared

Photo: 2021 ROMCOM

to the EU average. Upgrading healthcare

As one of Romania’s longterm financial partners, what do you think the country should do to attract more investments and reduce the economic gaps between itself and more developed countries?

infrastructure, investing in modern higher

The EIB Group survey on

The EIB Group’s business model remains

investment in Romania

demand-driven and we are grateful for the

highlights the impact of

excellent close cooperation with key Roma‑

COVID-19, leading to a sharp

nian ministries and private sector partners

drop in investment and sub‑

to make sure that together, Romania and the

dued activity by both govern‑

EU Bank can harness the opportunities of

education, and committing to further green up the energy mix must be long-term goals for Romania, and hence for our own lending activities in the country, supported by the EIB’s technical experts in Bucharest, one of the EIB’s largest offices worldwide, as well as our Luxembourg headquarters.

ing the new EU Modernisation Fund, both

ment and business. 60 percent of Romanian

the Just Transition Fund and Resilience and

appraising projects and financing schemes

companies we contacted felt that they had

Recovery Facility to the fullest.

with up to 75 percent of eligible project cost,

invested enough over the last three years,

compared to the usual 50 percent limit. And

compared to 80 percent across the EU. For

we’re looking forward to building on techni‑

one third of firms, replacing capacity was a

What are the EIB Group’s future plans in Romania?

cal discussions with Romanian authorities on

key priority, followed by another third want‑

The EIB and EIF have a strong and diverse

how to better leverage the new EU resources

ing to expand capacity. Only 37 percent of

pipeline of new investments in Romania,

made available through the Just Transition

companies were investing in measures to cut

with a number of innovative and exciting

Mechanism in order to help those regions in

energy use and reduce emissions. 72 percent

projects in healthcare, education, microfi‑

Romania which are more reliant on carbon-

stated that the shortage of skilled staff was

nance, and private sector expected in the

intensive industries to reconvert and plan

holding back investment.

coming months. We also expect to confirm

out a fair transition to a low-carbon economy.

Based on these and earlier findings,

EIB support for new schemes to improve

Finally, the EIB and EIF, building on the suc‑

the EIB is working with Romanian bank‑

road safety across the country, long-term

cess of the SME Initiative, are working with

ing partners and universities to unlock new

financing to expand and update regional

the Romanian government and commercial

investment to expand industrial capacity,

water infrastructure, following support last

banks to set up financial instruments that

increased vocational and technical training,

year for water schemes in Cluj-Salaj, and new

leverage EU resources from the Resilience

and provide targeted financing to help and

initiatives to support business financing and

and Recovery Plan in order to boost green

encourage businesses to invest in energy

municipal investment. These investments

and digital investments by small, medium,

efficiency. We are also helping to strengthen

will benefit citizens and businesses across

and large enterprises in Romania. The

overall investment in innovation, research

Romania and strengthen skills and opportu‑

financial instruments will also offer equity

and development, and digitalization to

nities for many years to come.

www.business-review.eu Business Review | June 2021 May 2016

COVER STORY FDI 21 14

4 things Romania should do to market itself to international investors The Romanian state, with its public institutions, policymakers, and legislative capacity, has certain levers it can use to apply communication principles and promotion strategies to attract the interest of foreign companies. Let’s explore four ways in which Romania can promote itself as an investment destination on the international scene.

By Claudiu Vrinceanu

Romania should intensify its promotion as an attractive destination for investors

1. KEY PROJECTS FOLLOWED BY PROMOTIONAL CAMPAIGNS

to attract digital nomads so much that it has

commercial attachés in the area of promotion

launched an advertising campaign promoting

and generation of strategic opportunities, but

Romania has drafted legislation for digital

itself as the new office destination for foreign

also for the creation of content that will better

nomads that could put Romania on the world

citizens: #CroatiaYourNewOffice.

promote our country in the eyes of foreign in‑ vestors. Establishing performance indicators

map as a destination for people who can work remotely and like to travel the world

2. INVEST ROMANIA

for Romania's trade attachés abroad would

while doing so.. The visa for digital nomads

The role of investment promotion agencies is

represent a new growth model for Romanian

would operate as a long-stay permit for third-

more important than ever now and Romania

business diplomacy.

country (i.e. non-EU) nationals who have an

could learn from other countries’ governmen‑

active employment contract with a company

tal bodies that focus on attracting Foreign

in the assessment of commercial attachés

or conduct business activities for their own

Direct Investments (FDI). Based on the needs

should be the rating provided by the recipi‑

company which is registered outside Roma‑

of strategic investors, Invest Romania could

ent of a service. In this regard, the Economy

nia, thus being able to work remotely, without

work to promote Romanian products and ser‑

Ministry should create an electronic platform

depending on a fixed location.

vices abroad and attract foreign investment to

through which all commercial attachés will

strategic sectors of the local economy. Invest

be evaluated and in which both companies

project, but it can only be implemented suc‑

Romania should develop multiple initia‑

that have completed or have abandoned the

cessfully in the real economy with the joint

tives with the aim of promoting Romanian

internationalisation process can participate.

contribution of public authorities and the

exports abroad. The Agency's efforts must

business environment. In the first phase, such

comprise trade and prospective missions,

a project can improve the country’s external

business rounds, support for the participation

image by creating global media coverage.

of Romanian companies in major interna‑

Next, we should look at what other European

tional trade fairs, arranging technical visits

institutions should better speculate moments

countries are doing. In Croatia, for example,

for foreign buyers and opinion makers to

that put our country on the world map in vari‑

there is a joint effort to unite digital nomads

learn about the Romanian production struc‑

ous fields. For example, key moments such as

and to provide them with various services. It

ture, and other select activities designed to

the UiPath IPO, international studies that rank

is important to not just make the laws that al‑

strengthen the country's branding abroad.

Romania above other countries on various

The digital nomad visa is a good niche

low digital nomads to operate in the country,

One criterion that should take precedence

4. BETTER PR FOR POLITICAL LEADERS WHEN ROMANIA BECOMES FAMOUS Romanian political leaders and local public

topics, and even Oscar nominations must all

but also to set up a contact centre for them,

3. BUSINESS DIPLOMACY

include a higher level of involvement from

because they may need help with various

Romanian diplomacy should be reformed

political leaders through public communica‑

issues once they arrive. In fact, Croatia wants

based on performance indicators (KPIs) for

tion at the institutional level.

www.business-review.eu Business Review | June 2021

22 BUSINESS ENVIRONMENT

Signs of recovery: new real estate transactions and better business sentiment Statistical signs of economic recovery are also being confirmed by data and trends from the real economy: we’re seeing new investments in real estate, a growing appetite for the creation of new companies, and optimism among foreign investors.

By Claudiu Vrinceanu and society, a context in which investors and entrepreneurs need a healthy environment to develop predictable businesses, with business decisions that are based on reliable informa‑ tion. The fear of doing business has been re‑ placed by initiative and courage in business," said Adrian Dragomir, founder of Termene.ro and business consultant.

OPTIMISM AMONG FOREIGN INVESTORS The Spring 2021 Economic Forecast presented by the European Commission showed an im‑ provement in growth prospects compared to the Commission’s last forecast. For Romania, the economic growth forecast was adjusted to 5.1 percent for 2021 and 4.9 percent for The economies of all Member States are expected to return to pre-crisis levels by the end of 2022

R

2022, while the winter forecast had indicated an increase of just 3.8 percent and 4 percent, respectively.

eal estate investments in the first

renegotiations are decreasing. The volume of

quarter of 2021 totaled EUR 98 mil‑

leasing transactions on the Bucharest office

expected to return to pre-crisis levels by the

lion, according to the quarterly report

market increased in the first quarter of 2021

end of 2022. The gradual introduction of

released by real estate consulting company

to 48,000 square meters, a 9 percent decrease

projects under the Recovery and Resilience

CBRE. Office buildings in Bucharest and

from the similar period of the previous year

Programmes will contribute to boosting

industrial spaces in the west of the country

when the COVID-19 pandemic was still in its

investment growth.

generated most of the quarter’s transactions.

early stages in Europe, according to research

What is interesting to note is investors’ ap‑ petite for industrial projects: EUR 38 million

The economies of all Member States are

Similarly, the results of the FIC Business

by real estate consultancy Cushman & Wake‑

Sentiment Index (BSI) captured investors’

field Echinox.

generally optimistic perception regarding the Romanian business environment more than a

of the total volume was generated by transac‑

year after the outbreak of the pandemic, com‑

the volume generated by office buildings –

FEAR OF DOING BUSINESS REPLACED BY ENTREPRENEURIAL DRIVE

EUR 40 million.

Signs of economic recovery are also present

the health crisis was at its peak.

tions with industrial spaces, almost equal to

pared to the previous issue (fall 2020), when Foreign Investors Council (FIC) members

The most dynamic investors were com‑

in the number of newly created companies in

panies from Austria and the Czech Republic,

Romania, which grew by 73.6 percent in 2021,

have shown moderate optimism regarding

which generated approximately 60 percent of

a trend that shows confidence in economic

the course their businesses will take in the

the volume traded in the first three months,

development one year after the onset of the

coming period. Investors’ confidence in the

thus confirming the consistency of capital

pandemic.

Romanian economy is reflected in their an‑

flows in Central and Eastern Europe, as indi‑

In the first four months of 2021, 39,890

swers regarding investment plans for the next

companies were set up in Romania, compared

12 months. More than half of respondents

to 22,976 in the first four months of 2020, up

(51.1 percent) expected investments to grow,

office market, we can mention the fact that

73.6 percent, according to the Termene.ro

and only 13 percent said they would put them

pre-lease transactions are increasing, while

analysis. “2021 is the restart year for business

on hold.

cated by CBRE at the beginning of the year.

As for other signs of a comeback on the

www.business-review.eu Business Review | June 2021 May 2016

MACROECONOMY COVER STORY 23 14

Romania’s trade deficit still widening despite export rebound As exports returned to growth and increased by 3.9 percent in early 2021, economic analysts have become more optimistic, but what should continue to be a cause for concern is the fact that Romania’s trade deficit stands at EUR 5.3 billion.

By Claudiu Vrinceanu

current Export Promotion Programme, which proved to be severely dysfunctional due to various internal controls, meaning that the policy of supporting the internationalisation of firms is frozen.

The Romanian government looked at the The number of Romanian tech companies developing on foreign markets is growing

R

number of fairs and missions funded in 2015 and 2019, respectively, and found that the average number of companies that partici‑

omania's macroeconomic health in

contribution is around 40 percent. Therefore,

pated in fairs decreased from 9 companies/

the context of the COVID-19 pan‑

there is a need to diversify products and

fair and 8 companies/mission to 8 compa‑

demic is largely based on the unique

services we send across the border and to bet

nies/fair and 7 companies/mission. Since the

contribution of domestic demand to the

on higher value-added goods, such as those

overall programme cost increased, it means

economic recovery, which in 2020 was more

generated by the IT industry.

that funding per company grew during the

consistent than had been previously esti‑

The number of Romanian tech companies

analysed period.

mated. However, the negative contribution

developing on foreign markets is growing.

of net exports has risen above expectations,

Every week, at least 10 companies announce

thing: the Economy Ministry has drafted

due to the growing gap between imports and

expansion plans, but it is not enough. These

an Emergency Ordinance on export promo‑

exports. The trade deficit has thus increased,

plans must be supported by policies and pro‑

tion. The project provides for a deduction

causing the deterioration of the trade balance.

grammes to support internationalisation.

of expenses related to the participation in

In Romania, exports make a 1.1 percent

The tech industry is keeping jobs and busi‑

But the government has achieved some‑

international fairs out of the profit tax for the

negative contribution to the increase of gross

ness going, but it is also keeping trade going

corresponding quarter. For micro-enterprises,

domestic product, according to the National

during these really difficult economic times.

the deduction is made from the income tax.

Institute of Statistics.

We can learn from other states when consid‑

Companies must cross the border di‑

ering the best ways to promote Romanian

rectly if Romania is to turn its economy into

region beat analysts’ expectations for 2020,

tech around the world and work with partners

a regional force, and the impact of Romanian

aided, among others, by a stable contribu‑

across the globe to really boost our presence

investments abroad deserves systematic

tion of net exports to growth. For instance,

on overseas markets, where we know there’s

support to strengthen our country's place in

Poland’s net exports contributed 1.1pp to

a rapidly-growing demand for IT services and

regional economic diplomacy. A comparison

the growth, based on a recovery of external

products.

with other countries in the region, including

For comparison, other economies in the

Bulgaria, Hungary, the Czech Republic, and

demand. A current challenge for the economy is the fact that Romanian exports are highly

PLANS TO GROW ROMANIAN EXPORTS

Poland shows that Romania still has a lot of

dependent on the car industry, as this sector’s

The government has decided to abandon the

work to do.

www.business-review.eu Business Review | June 2021

24 ENTREPRENEURSHIP

Romania gets behind EU’s unicorn hub ambitions There are more than 80,000 startups in the European Union (EU), of which 51 had reached a valuation of more than USD 1 billion by the end of 2020. Entrepreneurial communities across the continent have put forward ambitious plans to turn the EU into the biggest generator of unicorns within a decade. For Romania, the success story of UiPath, the locally-founded startup that went public in the US earlier this year, points to the possibility of more home-grown entrepreneurs coming up with billion-dollar ideas.

By Ovidiu Posirca

Innovative companies are concentrated inside a few EU states, hampering startup scaleups

E

last year despite the health crisis,

in Q1, only 7 will stay in the EU after their

that people would pay for, to demonstrate

getting around USD 41 billion from

funding round, according to an action plan

product-market-fit. Given the scrappiness

investors. In the first quarter of 2021, 27 Eu‑

designed to turn Europe into a global startup

required to stay alive without the need for

ropean startups turned into unicorns, break‑

powerhouse. Meanwhile, the US produced

continuous fundraising, European founders

ing the USD 1 billion valuation milestone.

67 new unicorn startups in the first three

often enjoy more autonomy and less equity

The big numbers point to a positive outlook,

months of this year.

dilution. Entrepreneurs who want to explore

uropean startups raised more money

but there are still some challenges which are specific to the European market.

Of the 27 startups that became unicorns

“To the credit of Europe's startup ecosys‑ tem, generating revenue is the only way to

prove that the business is creating something

serving a niche market or get a market proof of concept might find Europe more inter‑

www.business-review.eu Business Review | June 2021 May 2016

esting for starting their business,” Cristian

ENTREPRENEURSHIP COVER STORY 14 25

Furthermore, fintech is becoming one

and networking, models and celebration,”

Dascalu, chairman of the Romanian Tech

of Europe’s largest investment categories,

Marius Ghenea, managing partner at Catalyst

Startups Association (ROTSA), tells BR. The

according to Martins Valters, cofounder and

Romania, tells BR.

association has signed the action plan.

CFO of Mintos, the Latvian startup that man‑

Innovation Commissioner Mariya Gabriel

ages a global marketplace for loans.

pointed out in a speech earlier this year

STARTUP POWER IN ROMANIA AND CEE

Europe that makes it difficult for startups to

Romania and the Cen‑

get funding, especially at the series A stage.”

tral and Eastern Europe

Moreover, innovative companies are concen‑

region can create their

trated inside a few member states and the

own cohorts of startups

lack of connections makes it harder for these

capable to compete at

startups to scale up across Europe.

the global level. For seven unicorn startups,

Council, while the Recovery and Resilience

which is roughly one

Facility worth almost EUR 700 billion also

company per 185,000

seeks to boost entrepreneurship and support

inhabitants, marking a

job creation after the pandemic.

world record.

“CEE has a great

wide “unicorn factory” in which entrepre‑

advantage - most of its

neurs are propped up by a mix of grants and

countries are small, so

direct equity investments.

enterprises there natu‑

“Europe is an interesting place when

Ghenea suggests.

instance, Estonia has

ling funds through the European Innovation

The Commissioner envisages a Europe-

Romania should aim to have 100 tech com‑ panies worth USD 100 million and more,

that “there is a substantial market failure in

To change the status quo, the EU is funnel‑

Instead of trying to replicate UiPath,

rally have ambitions to scale abroad, which

Romania should position itself as a huge

compared to US or Asia. At first sight, it is

makes them more agile and oriented towards

reservoir of talent with excellent business

lagging in terms of innovation support, but

rapid growth. The Baltics is also a good

and cultural skills and finally with an invest‑

if we look closer, we can see that Europe is

example of what can be achieved in a short

ment ecosystem which is maturing and

leading the pack on greentech, especially

period of time,” Valters tells BR. The region

becoming able to support startups as they do

since the former US Administration withdrew

has been successful in building up attractive

in other more developed countries, says the

from the Paris Agreement. The subsequent

startups, especially after Brexit. The UK lost

Catalyst Romania managing partner.

underfinancing of greentech in the US cre‑

access to utilising European Economic Area

Despite the health crisis, Romanian start‑

("EEA") passporting rights after its

ups got over EUR 20 million in pre-seed and

high-profile separation from the EU.

seed rounds in 2020. Typing DNA, Soleadify,

For Romania, the success of UiPath, whose market capitalisation tops USD 40 billion, provided a shot

and DeepStash got one third of all the fund‑ ing.

“The best way for a country to become a

in the arm for the local entrepre‑

super-power in technology is to arm the pri‑

neurial scene.

vate markets with a stable legal framework,

“I hope that we are almost at a

low taxation, and enough public money

time when every smart kid dreams

managed by private fund managers,” Cristian

of becoming the next Daniel Dines

Munteanu, managing partner of Early Game

and creating the next UiPath, the

Ventures, a startup investment fund, tells BR.

next multi-billion tech business.

The local market has some aces up its

And we see now, as investors, that

sleeve that can support the creation of new

the number of early stage com‑

companies. There are certain tax facilities

ated market gaps that European companies

panies with real chances to succeed on the

for new firms and the workforce is relatively

immediately capitalised on and will continue

very competitive international tech mar‑

competitive. Romania is a good place to start

to do so, in part thanks to the Green Deal

ket is increasing exponentially, so we will

a company and sprint through the earlier

facility. Furthermore, France is silently, but

certainly witness more successes in the near

stages of a startup’s journey, Iceberg special‑

efficiently conquering the market in the deep

future for Romania, more entrepreneurs and

ists suggest. As the startup grows however, it

tech segment,” representatives of Iceberg, a

companies going from zero to hero in a short

will have to deal with lower funding geared

Romanian innovation consultancy firm, tell

period of time, as long as they have the right

towards research and development and red

BR.

support ecosystem: financing, mentoring,

tape that could become cumbersome.

www.business-review.eu Business Review | June 2021

26 ENTREPRENEURSHIP

PNRR set to enhance local startup funding ecosystem Around EUR 200 million of the National Recovery and Resilience Plan (PNRR) that Romania is negotiating with the European Union (EU) will be used to fund local high-tech startups.

Although it represents a small fraction of the EUR 29.2 billion the country aims to get from the EU, it showcases the state’s attempt to play a bigger role in the development of the entrepreneurial economy.

By Ovidiu Posirca

Romania placed startups among a wider range of projects it aims to fund through the PNRR

R

omania has good PhD theses with

and that the third idea that scales already

ment plans. The state is trying to become a

results that cannot be put into prac‑

brings a profit for the country,” the minister

player in the startup field after UiPath, the

tice at the moment due to the lack of

said during a TVR interview.

company with Romanian founders, was listed

funding, says Ciprian Teleman, the minister

“The grants will exclusively target the

of research, innovation, and digitalization. He

technologies of the future. We are talking

suggests that the PNRR may include financial

about artificial intelligence, blockchain,

instruments that could help turn ideas into

machine learning, quantum communication,

profitable businesses.

on the NASDAQ and reached a market cap of close to USD 41 billion earlier this year.

quantum cryptography,” the minister added.

ROMANIAN ECONOMY TO BENEFIT FROM MORE TECH STARTUP INVESTMENTS

“It's true that some of them will fail, but

If the European Commission (EC), the ex‑

It is particularly difficult to foresee how this

the experience of countries that have done

ecutive arm of the EU, approves the EUR 200

funding will be distributed across technolo‑

this, such as Israel, proved that if two ideas

million budget, the programme could become

gies, regions, and years, say representatives of

are scaled up, all the investment is recovered

operational in August, according to govern‑

Iceberg, a Romanian innovation consultancy

www.business-review.eu Business Review | June 2021 May 2016

ENTREPRENEURSHIP COVER STORY 14 27

firm. Considering the big picture, they say,

that the public administration should instead

cial focus on processors. It also wants to build

EUR 200 million doesn’t look like such a big

take a wider perspective.

a cloud infrastructure that will be used by

number.

“If I were them, I would stick to more basic

both public authorities and private players. In

concepts about using this money for tech‑

this field, Romanian officials have also talked

tive startups & SMEs will be significantly

nology investments in startups, early-stage,

about the government cloud project, which

lower than EUR 200 million, because of

and fast-growing Romanian companies,” he

should dramatically increase the adminis‑

implementation costs. Then, we don’t know

argues.

tration’s digital capabilities and improve its

“First of all, the actual support to innova‑

relationship with taxpayers.

who will evaluate applicants’ degree of in‑ novation and business potential. There is still

EU experts are also proposing the creation

a stringent need for capacity building among

HOW THE RECOVERY AND RESILIENCE FACILITY WORKS IN PRACTICE

of a government-backed venture capital

the institutions supporting and financing

EU states will have around EUR 672.5 billion

fund to increase access to finance by SMEs

technology and innovation, the absence of

available through the Recovery and Resil‑

and startups for the development of digital

which has resulted in several meaningful

ience Facility launched by the EC in Febru‑

designs and IP blocks.

innovators being forced to seek external or

ary 2021. The programme has two specific

Innovative entrepreneurs with products and services in competitive areas

private funding. Finally, the degree of

targeted by the EU are set to ben‑

bureaucracy surrounding public

efit from an influx of funding

funding renders innovation

through the new facility. The

quasi-futile," Iceberg repre‑ sentatives tell BR. How‑

onset of the pandemic has

ever, they concede that the

generated higher demand

funding will be valuable for

for digitalization tools, as

the ecosystem if the right

digital channels have helped a large number of firms stay in

intermediaries to manage the

business while lockdowns were

distribution of funds are put in

being enforced across the continent.

place.

The red tape that startups must go through

targets: at least 37 percent of the money must

Startup investments in Europe reached

in order to get grants might discourage some

go to investments to mitigate climate change

a record of USD 41 billion by early Decem‑

founders, who might instead choose private

and reforms, and at least 20 percent should

ber 2020 and the funding environment will

funds in order to move faster.

go towards supporting the digital economic

remain on a growth trend this year as well.

transition in the 27 EU states.

Romania’s PNRR funding of startups could

Romania is placing startups among a wider range of projects it aims to fund through the

The Commission will raise the

PNRR, which includes highways and energy

money by issuing bonds, and

efficiency investments. The disbursement of

all projects should be

funds is also linked to certain reforms that

implemented by 2026.

contribute to the bigger vision of turn‑ ing the EU into an international startup hub by the begin‑ ning of the next decade.

After Romania

“Such a plan devel‑

period. All in all, the investments should be

submits its PNRR

oped in collaboration

carried out in the next five years.

documentation, the

with tech startups

Commission will

and support organ‑

tech companies in Romania will be the best

have two months to

isations can indeed

investment the government or anybody else

analyse the plan, and

represent an oppor‑

could make, as returns will be huge,” Catalyst

will be able to approve

tunity to build up the

Romania managing partner Marius Ghenea

it after another month.

national entrepreneurial

tells BR. He adds that there are countless IT

Subsequently, the EU will

firms in Romania that are growing much fast‑

pay in advance 13 percent of

er than the pace of the economy, and this has

the total financial volume ap‑

a big impact in the country. Entire towns and

proved for investments. As development

Public policies supporting innovative compa‑

cities in Romania are now thriving because of

targets are met, the Commission will release

nies focused on the application of advanced

the tech people in those communities, who

new funds to every country.

technologies, whose products have the po‑

Romania must implement during the funding

“Any additional funding made available for

ecosystem and a continu‑ ation of the global impact of local tech product companies.

are buying properties, injecting money in lo‑

The EC has outlined some of the tech

tential of reaching international markets, will

cal retail and services businesses, and foster‑

segments in which Europe wants to gain a

boost economic development and encourage

ing education in their areas, Ghenea says.

competitive edge. The facility aims to prop up

entrepreneurial culture,” Cristian Dascalu,

Regarding Romania’s ambition to fund AI

Europe’s design and production capabilities

chairman of the Romanian Tech Startups As‑

startups through the PNRR, Ghenea suggests

in microelectronics technologies with a spe‑

sociation (ROTSA), tells BR.

www.business-review.eu Business Review | June 2021

28 INTERVIEW

Two degrees from two leading universities: the University of York and the University of Strasbourg Professor Leslie Szamosi, Executive MBA Director, and Alina Toader, Country Manager at CITY College, University of York Europe Campus, talked to Business Review about the importance of the Pan-European Executive MBA and the novelty that the Pan-European Executive MBA brings on the local market, highlighting details about the application procedure.

By Anda Sebesi study trips). The curriculum emphasises ex‑ periential learning through real-life projects, workshops and career coaching, broadening students’ applied knowledge and skills and building strategic leadership skills. MBA par‑ ticipants may specialise in one management area by choosing one of the six (6) available MBA specialisations: General Management, Marketing, Finance, Logistics and Supply Chain Management, Health Care Manage‑

During the pandemic, businesses had two options: to disappear or to reinvent. How can an MBA reinvent?

Prof. Leslie Szamosi: This has been a trying

Prof. Leslie Szamosi: Over the last 30 years

ment, Human Resource Management. The

CITY College has been offering the Executive

programme is accredited by the Association

MBA programme across South East and East‑

of MBAs (AMBA) and the Chartered Manage‑

ern Europe, making it one of the best MBA

ment Institute, UK (CMI).

period for all of us and, yes, the ways that

choices in the region. Today, the world-class

people and businesses function has gone

Executive MBA programme advances to a

through a dramatic transformation. For the

joint dual degree programme, the Pan-Euro‑

business school market we will (and have)

pean Executive MBA, offered by CITY College,

seen some schools disappear which is a natu‑

University of York Europe Campus and the

What about the application procedure for Pan-European Executive MBA that students may follow?

Alina Toader: Selecting candidates for

ral occurrence when they are not resilient

Faculty of Economics and Management of the

admission to the Executive MBA programme

enough to cope with changes, especially dra‑

University of Strasbourg.

(EMBA) is a critical decision. We believe that

matic ones. For those remaining, reinvention will be the key going forward.

The Pan-European Executive MBA offered

there is more to selecting a candidate than

in Bucharest builds on and develops further

just considering scores, GPA’s and other mere‑

“Change is the only constant” in today’s

the strengths of the current Executive MBA

ly numerical performance indicators. For this

business environment and this also holds for

programme. In addition to the dual degree,

reason, admission decisions for the EMBA

MBA programs. For strong MBA programs

the EMBA programme offers to its students

take into account three primary areas of

reinventing has to be a core part of their DNA.

a truly international experience: three study

evaluation: Professional Experience (length,

A program needs to be continually looking

trips - in York (UK), Strasbourg (France) and

breadth, and depth of professional and

at what it is presenting and delivering to stu‑

Thessaloniki (Greece). Moreover, lectures

managerial experience; potential for career

dents. Our evolution to a dual-degree MBA

are held by distinguished professors and

development and progression); Academic

program with the University of Strasbourg,

international academics from CITY College

Qualifications (a bachelor’s degree from an

and the addition of a unit on open collabora‑

University of York Europe Campus and the

accredited institution or previous postgradu‑

tion tools and sustainable society, is a part of

University of Strasbourg.

ate level studies with a satisfactory level of

our own reinvention moving forward postpandemic.

What can you tell us about the Pan-European Executive MBA now available in Bucharest, too in terms of innovation, approach and benefits?

The Pan-European Executive MBA pro‑

achievement); Additional Relevant Criteria

gramme now becomes even more accessible

(potential contribution to the learning experi‑

to busy executives who wish to combine work

ence of the programme; motivation; ability

and study, as students may choose between

and willingness to commit the required time

the Executive Mode (face-to-face delivery

and energy to the programme; community

plus 3 study trips) or the Executive Mode

service and professional activities; support

Blended (synchronous online delivery plus 3

from an applicant's employing organisation.

www.business-review.eu Business Review | June 2021

30 MOBILE ADVERTISING

Romania’s mobile advertising industry starting to bloom Httpool, an Aleph Holding company and global partner of top digital platforms (Facebook, Spotify, LinkedIn, Snapchat, etc.), published a paper titled “All of the Colours of Mobile Advertising 2021,” created to help marketing specialists build and improve their mobile advertising strategy this year.

By Romanita Oprea

Ruxandra Papuc, McCann Bucharest

R

Alexandra Tudor, Kubis

ight now, almost 2 billion people have

director at McCann Bucharest, says that the

mobile advertising managed to attract 60 per‑

access to the internet through smart‑

industry is growing and the constant updates

cent of the total online advertising revenue in

phones – the equivalent of 51 percent

mean that we can never get bored. New me‑

Romania last year.

of the 3.9 billion global users of mobile

dia is popping up everywhere you look. From

technologies, according to WARC. According

rich formats to new content models, every‑

being stuck at home, social distancing and

to data analysed by the company, mobile has

thing we know gets reinvented on a regular

quarantines, mobile advertising seemed like a

the potential to remain a leader in the tech

basis. “What needed to be explained two

sure winner for both marketers and advertis‑

space for the foreseeable future, especially

years ago is now the norm and answers to an

ing professionals. “During the pandemic, con‑

in the context of the accelerated digitaliza‑

increasingly picky audience. You need to be

sumers turned to their phones for tasks and

tion driven by the pandemic. According to

more relevant than ever and really work your

activities that they would have normally car‑

data provided by IMARC Group, specialists

brain off to be interesting. Entertainment is

ried out in person. As a result, smartphones

estimate that the global mobile device adver‑

on the rise and, in my opinion, there will be

have become an extension of themselves,

tising market will reach USD 269.1 billion by

a new era in advertising as purpose becomes

with constant interaction from the minute

2026. Furthermore, Retail Marketer expects

norm,” Papuc explained.

they woke up to when they went to sleep.

54 percent of all online shopping to be carried out via smartphones by the end of 2021.

At a time when consumers struggled with

With people spending an average of 3.44

PANDEMIC DID NO DAMAGE

hours per day online using a mobile device

The mobile advertising & communication

(We are social data, 2021), mobile advertis‑

advertising & communication industry stand

landscape proved resilient in the face of the

ing became an even more attractive space for

today, from a strategic and creative point of

pandemic turbulence, and a good example

brands, offering them the opportunity to cre‑

view? Ruxandra Papuc, executive creative

of this was an IAB Study which showed that

ate mobile-specific content that drives loyalty,

But where does the Romanian mobile

www.business-review.eu Business Review | June 2021 May 2016

MOBILE COVER ADVERTISING STORY 14 31

engagement, entertainment, and cultural

believes that the best word to describe the

help brands drive culture. A good example

change,” said Alexandra Tudor, senior strate‑

phenomenon would be “exploration.” “We’re

in this regard comes from our work at Kubis.

gic planner at Kubis.

now looking at mobile communication from

#SarbatoareDinOrice, Pepsi’s winter challenge

a more holistic perspective. We’re eager to

on TikTok with Fuego, became a viral digital

in popularity for some time now, but locally

discover new features for the apps we use and

phenomenon that accessed Gen Z’s pop-

it has been recognised as a major industry

push the boundaries of new formats as much

culture conversation in a relevant way,” the

disruptor only since 2017, when it became a

as possible. We no longer have brainstorming

Kubis representative explained.

She argues that mobile has been growing

must-have for any brand communica‑

And yes, clients seem to be more

tion framework. According to Tudor,

open to mobile apps in Romania as

the pandemic has accelerated this pre-

well, with Papuc arguing there’s no

existing growth trend, with Romanians

longer a barrier when it comes to

increasingly perceiving their mobile

discussing the idea. A few years ago,

devices as tools for entertainment and

dropping the app bomb would take

shopping, rather than just communica‑

courage on all sides. Now, the market

tion tools. As a result, mobile suffered

is more mature. “It’s no longer just yes

less than traditional media, with

or no, it’s ‘let’s find the strategic angle

mobile ad investment still expected to

to it.’ We also have a better understand‑

grow both locally and globally in 2021.

ing of the different types of apps and

Moreover, as Canopy CEO Eugen

we can tell what has a better chance to

Predescu added, mobile devices are

be a hit,” Papuc added. However, her

definitely the most popular in terms

opinion is not shared by Canopy’s CEO

of online traffic at this moment. In

when it comes to the strategic side, as

most industries, over 75 percent of

he points out that the problem is that

traffic comes from mobile phones.

after an app is launched, there is some‑

“It is crucial to develop mobile-first

times no specific marketing strategy

strategies for everything from websites

for it. “We often find ourselves in the

to advertising solutions. Advertising

situation where the advertising budget

platforms allow you to create different types

sessions that don’t involve a call to our Chief

is 20 times smaller than the app development

of interactions with your customers. It is

of Technology,” Papuc said.

budget. It is impossible to get the proper

very important to create specific content for

In turn, the Canopy CEO is seeing more

engagement for an app in this situation,”

each device. All companies should person‑

and more businesses looking to build their

alise their strategies and content for mobile

own mobile apps. He believes that to be a

devices,” he said. As a way to acknowledge

big plus, but at the same time, he argues that

e-commerce during the pandemic accelerated

the importance of this mix, Canopy started a

company representatives must keep a few

the development of mobile payment apps as

partnership with the pastel agency that would

things in mind when thinking about add‑

well, therefore brands started to redirect their

help them offer customers the personalised

ing an app to their portfolio. Questions such

attention from other channels to mobile.

experiences they are looking for.

as: “What will be different from the mobile

“The secret of a good mobile advertising

version of the website? How will customers

campaign is smart, creative, and personalised

pensive and, in order to optimise their invest‑

migrate from the website to the app? How

content targeted in a performance-oriented

ments, companies are focusing on conversion

will we keep people who download the app

way. From my point of view, the mix between

rate optimisation. This translates into better

engaged?” must all be on the list when devel‑

creativity and performance can ensure the

experiences and solutions designed for mo‑

oping a brand’s mobile strategy.

success of a mobile campaign. When you

“Getting more traffic is starting to get ex‑

bile devices. Furthermore, online competition

On the other hand, Alexandra Tudor is

Predescu argued.

Alexandra Tudor notes that the rise of

know who to target, on which device, using

has increased significantly over the past two

looking towards TikTok and mobile gaming as

what formats and create different ad sequenc‑

years, especially during the pandemic. This

the main factors of influence and change. She

es that you can deliver based on specific

was one of the few positive aspects of this pe‑

believes that in terms of emerging trends on

scenarios, you can create mind-blowing

riod. Thanks to this acceleration, all internet

the local market, TikTok is the social media

personalised campaigns that can go viral and

users are having better online experiences,”

winner of 2020. “The secret of TikTok’s

help you scale overnight,” Eugen Predescu

Predescu noted.

success was its ability to deliver positivity,

said.

humour, and entertaining content at a time of

Meanwhile, Ruxandra Papuc thinks that

WHAT’S NEXT?

stress and discomfort for consumers around

the main factor of success is insight, as noth‑

Looking to the future and anticipating

the world. Mobile audiences turned to TikTok

ing, no matter how funky or techy it is, will

trends, the McCann Bucharest representative

to create “meme-able” moments that could

ever work without good insight.

www.business-review.eu Business Review | June 2021

32 DIGITAL

How to check if your brand is digitally healthy Digital is now part of everything we do, and digital marketing is no longer separated from traditional approaches. Digital is much more than a communication tool; it requires a lot of resources and talent including designers, developers, content writers, project managers, data scientists, marketeers, etc. – and they must all work together to meet a common goal.

By Romanita Oprea sures how interesting the brand is for con‑ sumers, the Content Power Score measures the brand’s online presence starting with the sources of mentions in the digital.ro space and weighs the impact of these mentions (viewership). In other words, it is not enough to have many online mentions; they also need to have strong visibility to get a higher score.

The Conviviality Score measures a brand’s empathy level through the number of positive interactions on social media.

The advertising industry often relies on instinct. There are two options when you’re looking at data: either it validates your instinct and it feels like a super-power or it gives you a new angle. Imagine a transparent watch – if it stops, you can see which of the little wheels stopped and react in real time.

“For us it was a dream come true to see on our screens whatever the entire market was doing live, how consumers perceived actions, and what went well or wrong, both quantita‑ tively and qualitatively. Our intention is very altruistic; we are giving the market a ranking system based on tonnes of data, which leaves no space for subjectivity. Our hope is that by Nicu Enache, Grapefruit

P

releasing new rankings each month, they will become a reference and guiding element for each brand’s marketeer. We already have 100+

ublicis and Digitas Romania, with

rankings have been generated for several key

brands in our rankings, and the list will grow,”

the support of the Data Intelligence

industries.

said Calin Buzea, Managing Director at Digitas

Team from Publicis Groupe Romania,

Using multiple data sources, the DHI is

Romania.

Another action to identify healthy digital

have developed the Digital Health Index, a

a modern, complex tool for the qualitative

proprietary tool that measures brands’ health

and quantitative measurement of all brand

brands on the market was taken by the

in the digital world. The DHI was designed

indicators, for selected brands and their com‑

Grapefruit agency, which launched the Digital

to provide clients with real-time relevant

petitors, helping to restore the connection

Evaluator tool. Agency representatives say

information about the status of their brands –

between consumers and brands.

that over the years, they had noticed that

from brand X-rays and competition analyses

The Digital Health Index consists of three

many professionals talked about digitaliza‑

to various predictions that streamline busi‑

key indicators, each representing a third of

tion, but not all of them were practicing it.

ness decisions. Based on the DHI, monthly

the total score: the Digital Power Score mea‑

At the beginning of this year, they created

www.business-review.eu Business Review | June 2021 May 2016

an eBook together with 8 chartered market‑

COVERDIGITAL STORY 33 14

But what does it actually mean for a brand

results with the industry, and share a unique

ers and spoke about the best way to build a

to be healthy, especially in the online space?

URL with work peers. After five or more

resilient marketing strategy. Going through

According to Calin Buzea, the answer revolves

assessments are made by employees of the

their answers, the Grapefruit team noticed

around interest, impact, and empathy. The

same company, they will have access to the

how important it was for a marketing profes‑

three sub-scores of the Digital Health Index

aggregated results, which will help them see

sional to know where their company stands in

measure people’s interest in a certain brand

where the company is positioned and identify

terms of its digital presence. And that was the

or subject, the impact (visibility) of brands,

the gaps that need to be addressed.

moment they started to outline the idea for

and the scale of positive engagements on so‑

this tool. Before they started working towards

cial media – all in one single view, where the

customer’s voice, keep your finger on the

bringing it to life, they held feedback sessions

brand evaluates its position among specific

pulse, and have an objective approach. Loy‑

with several heads of digital from various

competitors.

alty platforms, social media groups, commu‑

companies and industries. The feedback

“A healthy brand has a human approach

“The second step is to always listen to the

nity management, constant communication,

helped validate their idea, as many of them

towards all stakeholders, and that also

QAs, live videos, and UGC are just some of the

agreed that a tool like this would be necessary

includes optimising its digital capabilities.

ways a brand can get feedback from custom‑

on the Romanian market.

From customers to employees,

“We saw the Digital Evaluator as an im‑

everyone needs a platform that

pulse for all professionals in marketing and

matches their needs. Custom‑

digital departments to start prioritising the ar‑

ers need a place that provides

eas that need the most attention. We had tried

information, facilitates the

several tools on the market, but you either

buying process, helps them com‑

had to pay to see the results or they didn’t

municate efficiently with brand

cover all the aspects of digital maturity,”

representatives, and makes them

explained Nicu Enache, Senior Digital Market‑

feel heard by the brand. Plenty of

ing Consultant at Grapefruit. Moreover, he

businesses tend to opt for short-

believes that the Romanian market needed a

term campaigns with great re‑

tool like this, especially after 2020, when digi‑

sults on the spot, but don’t take a

talization was accelerated and maybe even a

long-term strategy into consider‑

bit rushed. Therefore, Grapefruit wanted to

ation. These campaigns can have

have a positive impact on as many organisa‑

a certain impact, but they’re not

tions as possible.

contributing to a long-lasting

“We’re offering them a free tool to assess

positioning in the consumer's

their organisation’s digital capabilities, share

mind and don’t make them feel

it with their colleagues, compare it to its

that their voice is heard and their

industry or a secondary one, and have a clear

needs understood,” Nicu Enache

overview of its digital maturity. We believe

explained.

it will at least start a conversation between

Employees, on the other hand, need plat‑

ers. Constantly engaging with customers and answering all their questions can provide

a company’s departments, break some silos

forms and digital processes to facilitate their

brands with a better understanding of their

and, why not, lead them to prioritise and

everyday tasks. There are many organisations

needs and wants,” Nicu Enache said.

focus on the right things when it comes to

that still don’t use a CRM; they keep their

digitalization. In the end, we would like to

databases on multiple Excel spreadsheets and

need to build a data tool and armed them‑

leverage conversations around the Digital

they lack tools that could streamline pro‑

selves with ambition and patience, it took

Evaluator. We are confident that perspectives

cesses, which directly impacts their employ‑

a few months to define, organise, find data

are different within any organisation, but

ees’ productivity and satisfaction. Business

sources, build real-time connectors, and

there is value in uncomfortable conversa‑

process optimisation is of great importance

develop the best data visualisation methods.

tions,” said Nicu Enache.

for a brand and the company behind it.

Then they spent about 6 months calibrating

For Digitas, after they determined the

But how does one build a healthy digital

it using several brands. “But it was worth it.

wave of digital initiatives, in the hope that it

brand? According to Grapefuit’s senior digital

Now you can check your brand’s health from

will provide a clearer picture of a company’s

marketing consultant, the first thing to do is

the seaside while drinking a Martini just like

positioning. Companies can evaluate their

to evaluate the company’s current situation in

you check your Apple Watch to see your own

strengths, weaknesses, and where they stand

terms of its digital maturity – and this is what

heart rate. My advice if you wanted to build

compared to the competition, and based on

the Digital Evaluator tool is designed to do.

something similar would be to be persuasive,

these results they can start planning for their

A marketing or digital professional in a com‑

patient, and to not take ‘no’ for an answer,”

next digital initiative.

pany can carry out the assessment, compare

Buzea concluded.

This tool came as a response to last year’s

www.business-review.eu Business Review | June 2021

www.business-review.eu

34 FUTURE FOOD Business Review | OF May 2016

COVER STORY 14

The future of food: are insects going to be part of our daily menu?

The European Commission recently decided that the yellow mealworm was safe to eat, making it the first insect to be included on a list of “novel foods” approved for consumption in the EU. Business Review talked to Constantin Muraru, communication and research manager at the International Platform of Insects for Food and Feed (IPIFF), a non-profit organisation that represents the interests of the insect production sector among EU policy makers, European stakeholders, and citizens.

By Oana Vasiliu (‘biocontrol’) sector or in the production of exotic pet food (e.g. reptiles) have diversified their economic activities by creating produc‑ tion lines for human and/or animal food.

They have been joined by numerous innova‑ tive startups that have optimised agricultural systems in Southeast Asia – identifying insect species found on the European continent that give the best yield in terms of process‑ ing residues from agri-food fields like fruit or vegetable peels, fermentation residues or former foodstuffs, such as production surplus, deformed products or expired food that has been produced in compliance with EU food laws.

Which insects are eligible to be designated as novel foods at this point? What does this process involve?

Currently, the EFSA is evaluating a number of novel food cases and the products that may be authorised in the coming months are di‑

When did insects become an interesting topic for the EU and why?

ments such as insect farms is a topic that has

verse – from chia or rapeseeds to micro-algae

only gained popularity over the last decade.

or insects. Among the insect species, we can

The subject of insect breeding is not new in

Companies operating in the pest breeding

mention crickets, locusts, soldier fly larvae

European Union countries. Some species of insects have been bred for silk production (sericulture) in Europe since the 12th century or more recently for pest control through biological methods – where insects that play a beneficial role in nature are intentionally spread on agricultural land or in controlled environments such as greenhouses to control various pests. For example, ladybugs can be used for aphid control, as a substitute for toxic insecticides.

However, raising insects for human and animal consumption in controlled environ‑

www.business-review.eu Business Review | June 2021

FUTURE OF FOOD 35

Photo: Protifarm

Photo: Protifarm

The texture of food is similar to what we already know: Pasta with mince made of insects

How a falafel looks like

than 100 grams of chicken breast. However,

incorporated into bakery products, burgers

Are insects going to be used any other way? Are studies being carried out for other industries as well?

and meat-like products, high-protein pasta,

As seen in nature, where insects are an es‑

the human diet. For a balanced diet, we need

etc.

sential component of most food webs, insect

a variety of food sources, and insect-based

larvae have extraordinary abilities in terms of

products and animal products can comple‑

transforming and converting organic matter.

ment each other.

or flour worms. These insect species may be allowed to be used as protein-rich powder or

In addition to the main steps – the elabora‑ tion of a scientific brief, the evaluation by

the IPIFF and its members do not aim to re‑ place meat or animal products (dairy, eggs) in

the European Food Safety Authority (EFSA)

In the field of human nutrition, there

and the authorisation of the Member States,

are various studies on the use of proteins or

the process is a rigorous one. The applicant

lipids (i.e. oil) extracted from insects. For ex‑

Does insect farming have less of an environmental impact than other businesses?

must prepare a complete brief that includes

ample, researchers at the University of Ghent

Recent studies have confirmed the low

toxicology or microbiology studies, validity

(Belgium) evaluated the potential of insect

environmental footprint of insect farming.

testing, and other such documents. This pro‑

lipids as a partial substitute for butter in Bel‑

Depending on the technology being used, the

gian waffles, showing that insect

footprint of insects can be as low as half that

oil can replace up to 25 percent

of chicken or soy products. The main advan‑

of the amount of butter used.

tages of growing insects include the small

Another fascinating use case

area needed to build a farm, because these

for insects is in the pharmaceu‑

farms are arranged vertically, and the small

tical industry, mainly for the

amount of water required, because these spe‑

extraction of substances with

cies get the water they need from the food

antibacterial or antiviral roles.

they consume.

Photo: Protifarm

For example, insects contain chitin, which is used as a supple‑ ment for heart problems or as an antibacterial agent.

Who is going to feed the planet of tomorrow? What will be on our plate in the future?

According to United Nations experts, the

Are insects a viable meat substitute for humans or animals?

planet's population could reach 10 billion people by 2050. Therefore, the need to

cess confirms the high food safety standards

Due to the high content of protein and es‑

produce enough quality food for another 2

imposed by the European Commission and

sential amino acids, insects can contribute to

billion people is urgent, and to achieve this

the EFSA, and the fact that submitted insect

the occasional replacement of meat products

goal, adding new and innovative solutions

product briefs normally pass the assessment

at an individual level. In other words, 100

to existing agricultural systems, including

phase confirms the insect production sector’s

grams of insects can contain about 60 grams

insect or algae growth, will play an important

commitment to food and consumer safety.

of protein – that’s almost three times more

role.

www.business-review.eu Business Review | June 2021

www.business-review.eu

36 ENVIRONMENT Business Review | May 2016

COVER STORY 14

The challenge to find Romania’s next Vacaresti Park In an attempt to find more natural areas in Romanian cities, the Vacaresti Natural Park Association aims to mobilise urban communities to identify, document, map, and promote ten more natural areas in major cities of the country and five others in the urban and peri-urban areas of Bucharest.

By Oana Vasiliu promote our natural heritage, a tourist attrac‑ tion, and an example for other cities in the country,” says Florin Stoican.

A MODEL FOR OTHER CITIES Vacaresti Park is not the only place in the country that could be turned into a protected natural urban area. Cluj-Napoca has the East Park, for which the City Hall and the Order of Architects organised an international design competition. 27 solutions were submitted, Photo: Helmut Ignat

and the winning proposal is going to keep a significant part of the park as an urban natu‑ ral area. In Brasov, the mayor's office set up a commission to analyse the establishment of the Brassovia Natural Park, which would Vacaresti Natural Park as seen from above

U

cover a large forest area in the peri-urban areas of Brasov and other nearby townsthe city like a ring. “We also have partners and

nlike urban parks, natural areas

for citizens, given that over half of the global

projects in Satu Mare and Timisoara, as well

involve elements of biodiversity

population already lives in urban areas,

as a long list of candidate cities, out of which

conservation and environmental

and this figure is growing rapidly. “Urban

we will select six more areas from six other

education and they play a key role in the

natural areas have a role in fighting climate

cities, as well as five more areas in Bucha‑

process of adapting cities to climate change.

change through carbon sequestration (the

rest," says Florin Stoican, adding that in order

In the face of this phenomenon, cities are

process of capturing and storing atmospheric

to establish an urban natural area, “we need

among the most vulnerable ecosystems,” says

CO2), cleaning up the air, conserving urban

to identify an area that is worthy of protec‑

Florin Stoican, nature conservation specialist

biodiversity, as well as offering environmen‑

tion, engage the local civil society – which we

and president of the Vacaresti Natural Park

tal education and healthy leisure activities,

support through know-how and resources –,

Association.

including spaces for practicing sports, and

and be met with openness from local authori‑

much more,” Florin Stoican adds.

ties.” These things can only happen if citizens

Following a national advocacy campaign, Romania is expected to soon adopt legislation

The Vacaresti National Natural Park is the

are willing to take part in the project and play

on the conservation of urban natural areas,

first urban natural park in Romania, thanks to

a supportive role. “Protected urban natural

currently under review in the Parliament.

a 2016 decision that came after many years of

areas can only be a reality if citizens get

This would represent a major step forward for

lobbying and advocacy from NGOs. “It repre‑

civically involved and demand this for their

Romania, helping it meet the environmental

sents a square metre of green space for every

communities. We need support and persis‑

commitments made through the European

person living in Bucharest, a space where

tence from every citizen in demanding action

Ecological Pact, which urges member states

they can interact with nature and wildlife

from local and central authorities to help the

to plan and implement solutions for biodiver‑

that’s close to home, an open-air school with

smog-stricken urban areas of Romania turn

sity conservation in cities.

a huge potential for environmental education

into European green cities,” argues Elena

– because it is located right next to 10 percent

Calistru, president of Funky Citizens, one of

of the country’s population –, a platform to

the organisations supporting the initiative.

Urban natural areas could also contribute to mitigating the effects of climate change

www.business-review.eu Business Review | June 2021

ECO 37

New trend in Romania: zero waste stores Zero waste stores are finally growing into a trend in Romania – better late than never – offering all natural, sustainably sourced, eco-friendly, and plastic-free alternatives to items people use in their everyday lives. Business Review has made a list of the places where you can find such sustainable products.

By Oana Vasiliu

SIBIU Naked Shop (1 Alexandru Odobescu Street) is located near Piata Mare and it was created out of the desire to live and promote a sustainable lifestyle that is as natural and minimalistic as possible, to encourage change, and to em‑ brace nature through sustainable, eco-friend‑ ly, green, and plastic-free products created using natural materials.

CLUJ-NAPOCA Vera Green (6/8 Aleea Scarisoara) also oper‑ ates as an online store where you can mostly

Bucharest Zero Waste Store

T

find cosmetics and detergents as well as cleaning products for any type of space and

he latest data regarding the recycling

Guard carried out checks across the country

surface. They also have a selection of organic

of municipal waste showed that

regarding the application of waste manage‑

solutions for sandwiches, fruits or snacks,

Romania had reached a rate of only

ment legislation. With these figures in mind,

as well as ideas on how to become more eco-

13.9 percent, totalling 739,384 tonnes, accord‑

zero waste stores seem like a natural step

friendly.

ing to the Annual Report on the State of the

forward, but at the same time, they remain a

Environment for 2018 issued by the National

very niche shopping destination.

Environmental Protection Agency. According

PIATRA NEAMT Aer (7 Calistrat Hogas Street) is the ideal place

to the information available in the National

BUCHAREST

for daily shopping, with local products for

Waste Management Plan during the analysed

Zero Waste Store Bucuresti (20 Buzesti Street)

food, care, leisure, and socialising. They trace

period, the share of separate collection of

was the first such store to open in Bucharest

the source of all their products, and 80 per‑

municipal waste varied between 3.2 percent

.It’s a place where you can buy everything you

cent of them come from Romania. Vegetables,

and 5.3 percent. Both the National Regula‑

may need, from food to cosmetic products,

dairy products, vegan products, homemade

tory Authority for Community Public Utility

and you can also learn more about sustain‑

cakes, cleaning and care products, and beauty

Services and the National Environmental

ability and how to reduce waste there.

items are all part of the offer.

AER Piatra Neamt

Naked Sibiu

Vera Green Cluj Napoca

www.business-review.eu Business Review | June 2021

38 CITY

New in town

By Oana Vasiliu

With the pandemic slowly but surely coming under control, cultural operators have started to plan events based on the new scenarios provided by the authorities, which will come into play starting June 1. Let’s take a look at what’s happening in Bucharest this month. festival will be Combinatul Fondului Plastic, but events will also take place at the SENAT Gallery and UNA Galeria.

RADAR will become a Temporary New Media Art Museum between June 10-13 at ROMAERO and will present a special centre piece – CORE – a Boeing 737 that’s been transformed into an immersive art installa‑ tion. RADAR (Romanian Artists Developing Alternative Realities) supports the local new media art scene by bringing together creative studios and independent artists to showcase their digital projects and augment the coun‑ try’s Cultural & Creative Industries.

Romanian Design Week

T

he Romanian government has de‑

LIVE CONCERTS RETURNING

cided to ease more of the restrictions

Not only is Gradina Urbana hosting concerts

introduced earlier in the context of

or live events almost every night, but a new

the COVID-19 pandemic. As of June 1, new

stage is opening in the backyard of Expirat

rules will apply for public and private events,

Club, where Romanian alternative bands have

indoor playgrounds and swimming pools, res‑

already booked gigs. You may also want to

taurants, and accommodation units.

check out the Mihai Eminescu Amphitheatre,

From June, the number of people who can take part in outdoor cultural, art, and enter‑

a summer garden that’s perfect for both the‑ atre and concerts.

tainment activities will increase from 500 to 1,000, but participants must show proof of

RESTAURANTS

vaccination or a negative COVID-19 test.

From June 1, indoor restaurants will be al‑

Several streets in central Bucharest will be

“They May Still Be Alive Today” directed by Tudor Cristian Jurgiu

lowed to operate at a 70 percent capacity, so

closed to traffic on weekends until October

you’ll have a better chance at getting a table

17, including Kiseleff Boulevard and Victoriei

at your favourite places. Furthermore, the

Avenue, between 11 AM and 11 PM.

ialoc app is launching a food festival offering discounts up to 50 percent if you book a seat

CINEMAS FINALLY OPENING

through the app.

After being closed for more than six months, all cinemas were able to reopen in the last

ARTS

weekend of May. Nomadland, Soul, Cruella,

Romanian Design Week (June 4-13) has a

Godzilla vs. Kong, Mortal Kombat, Fast & Fu‑

programme that will take place both online

rious 9, and Tom & Jerry were among the pre‑

and offline and gather organisations, design‑

mieres. Two Romanian films also premiered:

ers, initiatives, and events that will focus on

“They May Still Be Alive Today” / “Poate mai

the importance, success, and contribution of

traiesc si azi” directed by Tudor Cristian Jur‑

creative industries in society, especially in a

giu and “Luca” directed by Horatiu Malaele.

post-pandemic reality. The main venue of the

Gradina Urbana