BR 08

INTERVIEW: In 2015, SoftOne established an international support center in Romania for all its partners in South-East Europe. SoftOne Romania CEO Haris Zachariades tells BR how the company works locally and what its short-term goals are » page 25

ROMANIA’S PREMIER BUSINESS MAGAZINE

SEPTEMBER, 2016 / VOLUME 20, ISSUE 8

INVESTMENTS THE FAILED COUP IN TURKEY WILL HAVE ONLY A MODEST IMPACT ON THE ROMANIAN ECONOMY, AS THE LEVEL OF INTEGRATION BETWEEN THE TWO COUNTRIES REMAINS LIMITED, ACCORDING TO PUNDITS >> PAGE 20

Soaring health Providing a “happy” working environment, where individuals can express their creativity and feel like they are part of the organization, might be the key for bosses to score high on the attractiveness scale for current and future generations of workers » page 10

www.business-review.eu Business Review | September 2016

EDitorial anda sebesi EDITOR-IN-CHIEF

business is not about luck Recent international political and economic developments should make us all think of the volatility of the business environment. With companies often announcing their entrance into or departure from a market because of an unfavorable political, fiscal or legal framework, any economy should have a plan to remain an attractive destination for foreign investors.

We might say that at least from the forecasts perspective, Romania is lucky. Two major events took place earlier this year and fortunately pundits expect both to have only a limited impact on the Romanian economy.

First came the potential Brexit and then the more recent political crisis in Turkey. With some 14,000 companies with Turkish capital in Romania, which have a combined share capital of USD 739.5 million, in the event of a potential crisis in Turkey, the impact on the Romanian economy should prove to be manageable.

But economies and businesses cannot rely on luck – as it sometimes goes against you. For example, the Romanian state had claimed EUR 1.2 billion in damages from the Italian utility company Enel for breaches of its privatization contract, but now faces legal costs of EUR 1.2 million after losing the high profile case at the International Chamber of Commerce (ICC) in Paris.

This was just one of the cases that the state has lost against the foreign utilities that ventured into the country in 2004, when electricity distribution and supply operations moved from public to private hands in a major privatization push. These firms were accused of failing to meet specific provisions, mainly related to new investments stipulated in the privatization terms.

All of this underlines that both the local economy and companies need to set a clear strategy that is able to counteract the potential negative effects of external events. If all sectors play a significant role in the case of an economy, things are different for private companies. The “Our employees are our most valuable asset” line has become a much used mantra by bosses, but it really is the case.

But now companies face a bigger challenge than retaining their staff members: how can they make them happy? Or, to be more precise, happier that the competition would? In a world dominated by four major phenomena – volatility, uncertainty, complexity and ambiguity, or VUCA – firms face a big challenge: finding ways to keep their employees loyal to their values while making them happy and offering them a supportive environment that lets them give free rein to their creativity.

Such efforts are known under the umbrella of well-being. Although the concept is still emerging on the local market, companies active in Romania are making significant steps towards this end and pundits say that this practice will become mainstream in Romania in the years to come. This important theme of well-being is the topic BR explored in its cover story this month. anda.sebesi@business-review.ro

EDitorial 3 Contents 3 5

EDITORIAL REAL ESTATE

Business is not about luck “Banks and developers need to get creative,” says Ovidiu Sandor 6 SPA Massaging the figures: local spa market gets expansion treatment 10 COVER STORY Company well-being programs post healthy progress 16 Occupational health is a must for a healthy business 17 INTERVIEW Porsche Engineering Romania: Cluj team may grow to hundreds of engineers 18 EDUCATION Companies grappling with bad perception of local vocational education 20 INVESTMENTS Turkish woes to have limited impact on local economy 22 ADVERTISING Independent Romanian advertising agencies powering through 25 IT SoftOne Romania manages activities for all its SEE partners 26 ONLINE Local parents still not aware of risks facing children online 29 HEALTHCARE Half of parents ‘treat children’s fever and pain with unsuitable drugs for their age’ 30 TELECOM Telecom watchdog adopts 2020 Strategy for Digital Communications 32 GEORGE ENESCU COMPETITION Tomorrow’s maestros warm up for George Enescu Competition 38 RESTAURANT REVIEW

Authentic, at last

issn no.

1453 - 729X FounDing EDitor Bill Avery EDitor-in-chiEF Anda Sebesi DEputY EDitor-in-chiEF Simona Bazavan Journalists Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu hEaD copY EDitor Debbie Stowe copY EDitor Eugenia Pupeza photo EDitor Mihai Constantineanu laYout Raluca Piscu

ExEcutivE DirEctor George Moise businEss DEvElopmEnt DirEctor Oana Molodoi salEs DirEctor Ana-Maria Nedelcu salEs consultant Valeria Cornean EvEnts DirEctor Oana Albu markEting Adina Cretu, Marius Andronic, Patricia Neamtu proDuction Dan Mitroi

publishEr Bloc Notes Media

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4 nEWs

nEWsin brief EnErgY omv petrom profit down 61 pct in h1 on reduced sales, low oil prices Oil and gas giant OMV Petrom, listed on the Bucharest Stock Exchange, reported a net profit of RON 117 million (approximately EUR 26 million) for the second quarter of this year, a decrease of 83 percent compared with the same period of 2015, the company has announced.

Moreover, the oil company registered a drop of 61 percent in its profit from the first half of this year to RON 405 million, due to lower sales and oil prices. In the first six months of the year, the company’s consolidated sales amounted to RON 7.2 billion, down by 18 percent yo-y, mainly because of the drop in crude oil prices and lower natural gas sales.

Eu survey: 77 percent of romanians would vote to remain in Eu Most Romanians would vote to stay in the European Union, a survey conducted

by IRES over July 13-15 revealed. Just 14 percent would vote in favor of Romania leaving the bloc. Some 6 percent said they would abstain from voting and the remaining 2 percent were undecided.

Most participants in the IRES survey, namely 69 percent, believe that Romania has more to gain from being an EU member, while 90 percent believe Romania should play an active role in relaunching the European project, with 93 percent considering that the country should show it is still committed to the values and principles of the EU.

FinancE state sells seven times more bonds than initially announced value The Ministry of Public Finance (MFP) has attracted RON 735 million via this year’s bond issue through the Centenary edition of the FIDELIS Program, seven times more than initially announced. In the three weeks of subscription, demand was very high: 20,185 individuals bought state bonds, 16 times more than last year. The bonds will be traded on the Bucharest Stock Exchange (BVB) from August 5.

bnr: 44 pct of 3,907 debt discharge requests not due to bad loans Some 44 percent of the 3,907 debt discharge applications submitted to banks

by 20 July were not in connection to bad loans, according to Mugur Isarescu, governor of the National Bank of Romania (BNR). Out of the total applications, 2,634 were contested. The BNR governor also stated that the total value of the credit in question, RON 1.13 billion, represents 1 percent of the total of loans to households and 2 percent of real mortgages. Isarescu added that 56 percent of notifications were related to loans where borrowers’ repayments were more than 90 days overdue, while 44 percent were not and in no danger of becoming bad loans.

posted double-digit growth rates, while the photography segment reported the biggest drop. The electronics market totaled EUR 87 million in the second quarter of the year, a gain of 30 percent compared with the same quarter of 2015. The sector’s biggest category – flat screen TVs – grew by approximately 34 percent, registering sales of EUR 76 million.

lEgal bogdan olteanu placed under house arrest, resigns from bnr

Fiscal anaF publishes list of individual debtors to state The National Tax Authority (ANAF) published on August 5 another list of individual debtors to the state budget. While there are fewer debtors than on the list published in May, the total sum was higher. The list includes 139,500 individual contributors who have total debts of RON 78 billion to the state: 5,530 fewer debtors than in May, but RON 1 billion more. On June 30 ANAF published the list of companies that owe the agency over RON 100,000. It includes 127 firms, known as the “big contributors”, whose debts total RON 3.77 billion.

invEstmEnts ministry of Finance opens registration session for state aid scheme The Ministry of Public Finance (MFP) launched on August 8 a new registration session for state aid. According to an announcement published on the MFP website, the registration session runs from August 8-22 and has a budget of RON 113 million. The scheme provides funding for investments in regional development and job creation, by means of grants from the state budget, for eligible expenses related to wages.

it gfk: romania’s white goods market up by 15.5 pct in Q2 White goods sales were up by 15.5 percent in the second quarter of the year compared with the same period of the last year, reaching EUR 529 million, according to a GfK Temax analysis.

Electronics, big household appliances, small household appliances and telecom products were the segments that

The deputy governor of the National Bank of Romania, Bogdan Olteanu, was placed under house arrest, following a decision taken at the end of July by judges at Romania’s High Court. Olteanu, who is accused of influence peddling in a political corruption case, said he would resign from the BNR so as not to tarnish the image of the central bank. Anti-graft prosecutors said that Olteanu had received an EUR 1 million bribe and political campaign services from controversial businessman Sorin Ovidiu Vintu, who is currently serving a jail sentence of six years and two months in a separate case.

Vintu is said to have given the money in 2008, when Olteanu was an MP, on behalf of the National Liberal Party (PNL).

macroEconomics Economy at risk of overheating, says central bank governor Romania’s economy is growing above its potential and based on consumption, Mugur Isarescu, governor of the National Bank of Romania (BNR), warned during the central bank’s second quarter report presentation. Should it be additionally stimulated, including through interest rate cuts, this will only lead to the creation of jobs abroad. He added that there are also growing tensions on the labor market given that salary growth is outstripping productivity gains. Trust in the economy is getting close to the level in 2008 when the economy was overheated, Isarescu also pointed out.

bnr forecasts negative inflation for 2016, below may estimate The National Bank of Romania (BNR) forecasts a rate of inflation of -0.4 percent for the end of the year, below the -0.6 percent estimate announced in May, according to a new report released by BNR governor Mugur Isarescu. For the end of next year, the central bank is forecasting an inflation rate of 2 percent, also down on the May prediction of 2.7 percent. For 2018, the BNR expects the

inflation rate to be “likely somewhere above the target (of 2.5 percent)”.

bnr keeps interest rate at 1.75 percent The board of directors of the National Bank of Romania (BNR) announced on August 4 that it will maintain the monetary policy interest rate at 1.75 percent per annum and maintain the existing levels of minimum reserve requirement ratios on both RON- and foreign currency-denominated liabilities of credit institutions. The BNR board also decided to pursue adequate liquidity management in the banking system. The interest rate has remained unchanged since May 2015.

Eurostat: romania posts biggest economic growth in Eu in Q2 Romania posted 6 percent economic growth in Q2, the highest rise among European Union member states, according to data released in August by Eurostat.

According to Bloomberg, this is the fastest growth pace recorded by the Romanian economy since 2008. The hike, experts say, was driven by a domestic consumption boom, tax cuts and wage increases. The GDP increase exceeds experts’ previous forecasts, of 4.1 percent.

tElEcom ministry of internal affairs to purchase mobile, internet services for all units for three years The Ministry of Internal Affairs (MAI) has launched an open tender for the procurement of mobile services (voice and data) as well as mobile internet services for all its units. The EUR 6.45 million contract (without VAT) is financed from public funds.

According to data published on August 5 in the Electronic Public Acquisitions System (SEAP), following the tender the MAI will conclude a framework agreement with a single operator for the period 1 January 2017 to 31 December 2019, and the subsequent contracts will not be subject to tender. MAI is not compelled to purchase these services to cover the maximum amount and/or the maximum value of the framework agreement.

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rEal EstatE 5

‘banks and developers need to get creative’ says ovidiu sandor The coming into force of the debt discharge law, which has effectively frozen financing, and concerns about the future of the government-guaranteed mortgage lending program Prima Casa will force bankers and developers alike to become creative, Romanian real estate investor ovidiu sandor tells BR. The businessman is preparing to kick start a residential project of his own in Timisoara this autumn. ∫ simona baZavan The residential market is looking at a period when it will have to resettle itself given the effects of the debt discharge law and the potential change to the Prima Casa program, real estate investor Ovidiu Sandor recently told BR in an exclusive interview. However, regardless of these developments, housing demand is on the rise in big cities across the country, which means the disruption should be only temporary, he stressed.

“All that Prima Casa has been is a financing tool available to a wider audience than what had previously been offered. I think we all remember that back in 2005 or 2006 one could hardly get a conventional mortgage at all.

However, in the meantime, banks have refined their offers. They need to circulate money and there obviously are people whom banks can lend that money to,” he said. This means that banks and developers will look for ways to replace Prima Casa with similarly accessible tools, although the debt discharge law complicates matters, thinks Sandor. “It is an arguable law. There has been a desire to take revenge on the banking system, but this is a misconstrued revenge as the target should have been the abusive clauses in some lending agreements. What is happening now is a fool’s revenge which will prevent the next generation of young people taking out a loan under simpler terms,” added the businessman.

Despite the debt discharge law, banks will come up with increasingly refined tools to ameliorate its effects, which will replace as far as possible Prima Casa in terms of accessibility, he added. Sandor also expects there to be amendments to the debt discharge law to make it more reasonable.

At the end of the day, banks and developers will have to work together and come up with financing solutions to

Eur

130 mln

The estimated investment in the residential and office project Sandor is kickstarting in Timisoara

support the existing demand in the market. “I expect both banks and developers to be creative. This is also what I have set out as an objective for our residential project in Timisoara. We want to come up with our own financing solutions for our prospective buyers which we would negotiate with a bank,” said Sandor. Customized financial plans already exist on more developed markets and they can be a source of inspiration for local players as well, he believes.

“We are not reinventing the wheel. We only need to choose and introduce such tools and make sure the market understands them. The need for this is certainly there,” he commented.

on the home straight: big plans in residential The investment the businessman has recently announced that he will start in Timisoara is his first venture on the residential segment. Sandor has a strong background in the local real estate sector. He developed the City Business Centre (CBC) office project in Timisoara which he sold to NEPI in early 2012 for an estimated EUR 90 million. He is now developing another office project – The Office – in partnership with the real estate investment fund in Cluj-Napoca.

“My experience so far has to do with of-

fice developments, but in real estate, like anywhere else, one must look at what the market’s needs are. What we have been seeing for over a year is an increased appetite for residential acquisitions. This comes after a long period when, whether because of financial strains or a lot of reluctance, people preferred to wait and see,” he outlined.

The project in Timisoara will be built on a 5.3 ha plot of land that Sandor has consolidated over the past couple of years. It will feature a total of some 1,000 apartments as well as office space for which the developer expects to invest a total of EUR 130 million over the next three to four years. “This is a project that we will develop in various phases. A thousand apartments is not a small amount for Timisoara and we are probably talking about three to four years to complete them. This is what we predict right now to be the sales rhythm but this will obviously be adapted to the market’s potential and the latest economic developments,” he noted. Most of the estimated investment will be coming from bank loans, but Sandor says he is also considering bringing in a potential partner.

The first apartments can be bought off plan this autumn and the actual construction will start early next year. In

early 2018 the developer plans to finish the first apartments as well as about 16,000 to 18,000 sqm of office space.

While competition in the office segment has been tightening in recent years in the main regional cities, Sandor says the market has the capacity to absorb that. Quality class A offices, in particular, are sought after and Sandor plans to build on his experience in ClujNapoca where he is developing The Office, a class A office project, in partnership with NEPI. As for the residential segment, the Romanian entrepreneur is betting on a similar strategy. “We want to redefine what quality living means. I strongly believe that when it comes to a block of flats, this means much more than the quality of its fittings. The quality of life an apartment offers has to do with everything that surrounds it, from the natural setting to easy access to work, shopping and entertainment such as restaurants and culture venues,” he said.

The residential project in Timisoara boasts a central location close to the city’s downtown. It is also located on the banks of the Bega river, which Sandor says he wants to make the most of.

“We are targeting young professionals who are part of what I like to call the ‘creative class’, meaning they are working in industries that include IT, consultancy, marketing, advertising or who are freelancers or entrepreneurs. They are young people who maybe don’t yet have a family and who want to enjoy everything city life has to offer,” he outlined. There is also interest coming from middle-aged potential buyers who may already own a property in the suburbs, but who want to relocate downtown due to the advantages city life offers, went on the businessman.

For this reason, the project will feature several types of housing units that can accommodate various needs as well as budgets. Prices will start “in the range of Prima Casa”, meaning around EUR 60,000, but will go beyond that. “What we have set out to do is to start from the average market price, to which we will add a premium since it has an outstanding position and it will be an outstanding project. However, this will not be a high premium,” concluded the businessman. simona.bazavan@business-review.ro

6 spa

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massaging the figures: local spa market gets expansion treatment Once seen as a luxury, spa treatments are becoming normalized locally, say pundits, and Romania is home to a growing market of spa centers. BR talked to players in the field to hear their own spa stories, and what expansion plans they have in store. lection by TISA, Nature’s Pharmacy, is based on extracts from Romanian plants such as melissa, basil, sage and geranium that can be found on the menu in the form of plant baths and compresses.

Attention was also given to naming the rituals and keeping them traditional: the Queen Maria Ritual is made of violet extract, the queen’s signature perfume, The Infinity Column (inspired the famous Constantin Brancusi sculpture in Targu Jiu) is a therapy treatment for the back with sapropelic mud. There are also other rituals such as “Pasarea Maiastra” (another inspiration from a Brancusi piece) and “Tinerete fara Batranete” (Youth Without Old Age).

“It’s the first time that a Romanian spa relies on its own resources in order to create a menu. Alongside the famous Gerovital, we’ve chosen to work with other Romanian brands and laboratories in the hope that the public will appreciate those lines of products, which most of the time have far superior qualities to other lines on the international market. I want to celebrate Brancusi’s, Queen Maria’s and the long line of Romanian healers’ legacies that have kept beautification traditions, wellbeing and therapy alive,” added Oana Manole, from Spa d’Or Consulting.

The spa is dedicated both to families and friends, doubling as a place to relax and have fun, depending on one’s Expansion: The year started strongly for the spa industry, with the launch of Therme Bucharest mood and feelings.

Other major spa centers in the country include Cocor Spa Neptun Olimp, market of around 80 spas across the bath, salt room, playgrounds, herbal Ana Aslan Health Spa Eforie Nord, Ana ∫ romanita oprEa whole country, with more categories spa, gym, bars and terraces and a varied Hotels Sport Wellness Spa Brasov, Vitarium Spa Poiana Brasov (located in the emerging and expanding. New projects menu of spa treatments.

“We strongly believe that we have to Alpin Hotel), Atasagon Detox&WellbeThe global spa industry grew 58 percent are starting in the cities (day and city from 2007-2013, from USD 60 billion to spas) and networks of day spas, proj- learn from the balance with which na- ing Centre Brasov, Wellness & Spa Perla USD 94 billion, with a 47 percent ects in mountain resorts or at the sea- ture follows its course and to benefit Baile 1 Mai Hotel Complex, Septimia growth in spa locations, to reach side, in high-end hotels as well as from what it has to offer us. As the sea- Resort Hotel Wellness & Spa Odorheiu 105,591 venues, according to the new hydrotherapy and treatment resorts son’s cycles are annually regenerating Secuiesc, Palace Hotel & Resort Venus, Global Wellness Economy Monitor, re- (health spa, med spa, balneospa) and the environment, so does the human Danubius Health Spa Resort Bradet Soalized by the non-profit organization among some recreation complexes body activate its capacities to regener- vata and Wellness & Spa Nevis Hotel SRI International and presented at the (areas of entertainment and sport, fam- ate. Following this philosophy, the sig- Oradea.

The year started strongly for the spa nature Tisa spa programs have their 2014 Global Spa & Wellness Summit. ily leisure, etc.).

The summer debuted with a 4,000 origins in Oltenia’s cyclical rhythms,” industry, with the launch of Therme And Romania is no exception.

Described as a dynamic, challenging, sqm wellness center, Tisa Resort, open- said Ioana Rebenciuc, operational di- Bucharest, a 30,000 sqm wellness, relaxation and entertainment center diverse and niched business, the Ro- ing at Baile Olanesti, near Ramnicu-Val- rector of the TISA group.

The Tisa Spa programs have at their based on thermal waters, some 20 kilomanian spa market has been on a per- cea, following an investment of EUR 5.5 manent rising wave in recent years, million and said to be the biggest well- base Romanian traditional procedures meters north of Bucharest, in Balotesti. being estimated by Eden Spa to stand at ness center in the region. Construction said to be inspired by nature and lo- Therme’s owners, Austrian group AEUR 6.5 million. Following the trend of work started in 2014, and the project cated in the present. The management Heat, said this is the biggest complex of growing interest in wellbeing, both on was co-financed through the Regional team alongside the consultancy firm its kind in Europe. The center’s main the professional and the personal side Operational Program. The center offers chose to work mostly with renowned features are the eight heated pools, of life, spa owners are looking to diver- a wide range of services, including local brands in creating the therapy where the water has a constant tempersify their services and offerings even swimming pools, jacuzzis, outdoor menu, which features Plantavorel, Pell ature of 33 degrees Celsius. Therme is more. Today, Romania is home to a children’s pools, slides, saunas, steam Amar and Farmec. The treatment col- not just a thermal center, but also hosts

www.business-review.eu Business Review | September 2016

8 spa the largest botanical garden in Romania with some 800,000 plants. The construction of the project began in 2013, with the initial investment amounting to EUR 29.6 million, and the final investment projected to reach EUR 50 million once all elements are complete.

When in bucharest…

Eden Spa opened its first location in 2005, becoming the first day spa in the capital. The pioneering wish was strong for Liliana Paraipan in her decision to start this business, but also because this kind of business is connected with an understanding of human beings, which made it attractive to her at that time. “I began from scratch in a completely new field and I learned from mistakes. From the very beginning, I knew that the main concept of Eden Spa should focus on relaxation and inner peace and it has stayed like this over the years. I have not changed the concept and I think this was one contribution to its success,” said Paraipan, owner of Eden Spa, spa consultant & trainer at spabusiness.ro.

As first mover, Paraipan concentrated in the first year of Eden Spa on the professional training of the therapists and the education of the clientele about spa services. "Both the personnel and the clientele have to learn to understand the difference between the services in a beauty center on the first floor of the building and a spa. This is the reason all our employees do training both abroad and in Romania, some of them having vast experience at international spas,” Paraipan told ZF magazine a few years ago.

Upon opening, the team was formed of ten people, but it grew over the years.

The initial financial investment was over EUR 200,000.

Today Eden Spa serves approximately 1,000 clients monthly, both men and women, typically aged around 2842, people working in corporations with an interest in healthy living and self-development. Of all the therapies offered by Eden Spa, the hot stone massage is one of the best-sellers. The holistic healing massage, a signature massage created by the firm’s own therapists, is also popular. “We offer the human touch and the human connection people are looking for when visiting a spa. We are not only a facility, we offer good personalized and customized services and experiences.

Many clients book a treatment when they suffer from pains or feel very tired.

In the last year, we saw that many clients are trying to make a routine by booking the spa therapies as a preventive measure against diseases or burnout,” said Paraipan.

In 2015, Eden Spa continued to register increases for its tenth year of operation, reaching almost EUR 400,000, and the firm expects to increase its revenue by 8-10 percent in 2016.

The business continued its expansion in Bucharest by opening a second location in 2011 in Grand Hotel Continental, with an investment of EUR 80,000. The 400 sqm dedicated to

Elena Visan, Orhideea Health Spa

Liliana Paraipan, Eden Spa

health, relaxation and wellbeing consists of: four treatment rooms, a Swedish sauna, maxi jacuzzi, gym and spa lounge Eden Spa continued its expansion by acquiring the management of other spas, such as The Spa Hilton Sibiu. “We have a plan of expansion through our own locations, but also franchising contracts. We are present in the rest of the country in different formulas. In Iasi, we have a management contract with Hotel Unirea and the Unirea Spa by Eden Spa offers similar services and guest experience to those in Bucharest.

In Valcea county, we offer consultancy and management services for Forest

Retreat & Spa and customers can find our massages and therapies there as well. We target the main cities and also tourist areas for expansion and are looking for different kinds of partnerships for this process,” said Paraipan.

Orhideea Health & Spa is the biggest spa center in Bucharest. Opened in 2011, the center was designed to complete the facilities of Orhideea Gardens. With an initial investment of EUR 3 million, the spa has 3,000 sqm and offers an extended menu of antistress, relaxation, energizing, getting back into shape therapies. It also offers a “fire and ice” area with hammams and saunas, a pool, complex fitness area and kinetotherapy

room. One of the original concepts is the signature treatment – the hammam ritual. Moreover, the saline treatment room is a key point of the spa, built with modern technology.

Orhideea Health & Spa entered, according to owner Elena Visan, an immature market. At that time, the idea of a spa was just starting to take shape, the concept of wellbeing just emerging on the market, the harmonization between the body-soul-mind and aromatherapy just establishing its basis.

“We wanted to introduce on our market a place that enchants all the senses by the constant presence of spa aromas, therapeutic treatments, calming music and the variation of colors,” added Visan.

Moreover, the firm came with a new spa concept: structured on three different levels, in the same place, the client was able to find a pool, sauna, fitness, aerobics, spinning, areas of relaxation and spa therapy rooms. Since 2013, Orhideea Heath & Spa has been run by the Foundation for Health Orhideea Spa, placing more accent on the idea of health and prevention, as well as adapting to a healthy lifestyle, based on active movement, nutrition and relaxation, a need born out of the routine and agitation of the 21st century.

“Monthly, we have over 5,000 clients, their profile consisting of active, busy people, with a dynamic professional life, who spend more than 8-10 hours on a chair at their desk at work and who feel the need to change their lifestyle. It is also someone who feels the need to run or to swim, who has back pains and wants a massage, a person that suffers from a postural medical condition and feels the need to treat it. Last year, we had around 50,000 clients and in 2016 we expect a rise of 25 percent,” added the Orhideea Spa representative.

Eden Spa is not the only one looking to expand. Belle Maison Spa, a boutique situated in the capital’s center, is interested in opening another spa in north Bucharest, looking to target corporate employees. Launched also in 2011, Belle Maison Spa required an initial investment of EUR 50,000 that doubled in the next two years, and was located in Otopeni. Almost three years ago the spa moved to the center of the city and positions itself as an oasis of relaxation, serenity and good vibes. The number of clients varies, according to the weather and the holidays, with the number increasing by as much as 30-40 percent in colder weather. “The loyal clientele is curious and wants to try different types of procedures and treatments, but in general, the most sought after are the therapies that treat the body and the mind in a holistic manner.

Also, during the summer, women naturally prefer treatments that will enhance their bodies’ attributes and take better care of their skin,” said Angela Coman, owner of Belle Maison Spa. Moreover, this year, the boutique spa launched a new summer concept: “Vacation in the City”, with most of the treatments designed to get clients

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thinking about their holidays and relaxation. “Whether it's about a trip to Provence, India or Paris, a therapy and a visit to the spa has to be a trip for the senses. One of our foreign clients called us ‘The Relaxation Station’ and that also makes us happy,” added Coman.

Belle Maison Spa offers five relaxation rooms and one for couples, with the number of monthly clients reaching around the 400 mark. The number of new customers is high, and spa representatives are working on creating a good retention program and rate. At the boutique spa, the focus is on a team engaged in trying to see every client leaving the premises smiling and feeling happy and relaxed. Coman says she invested time and energy looking for the right people for the team. “I believe that the secret of any type of business lies in the team of specialists you have next to you and at Belle Maison Spa we’ve selected not only the best professionals, but we’ve put the basis for a real family.

People that know how to attend to clients with a broad and sincere smile upon their faces, people that are fulfilled when they have the confirmation they’ve succeeded in making the difference in someone’s daily routine and that are constantly trying to improve themselves. For us, it’s really important to have a special kind of team that becomes part of the story we want to build,” concluded Coman. For 2016, she estimates a turnover of EUR 130,000, up by 15-20 percent compared to 2015.

sparring partners: competition hots up On a market growing from year to year with stronger and more determined competition, spa owners need to be in check all the time and make sure their positioning and services are what clients are really looking for. “I am glad that finally, the spa market is beginning to become a competitive one. Many of the existing spa centers are consultancy and management clients I’ve offered these services to over the years. Centers like The Spa Hilton Sibiu and Orhideea Health Spa are two of the main spas which I’ve managed or operated and which are now important players on the spa market in Romania,” said Paraipan.

Moreover, with the market increasing

spa 9 top 10 spa hotels, romania – august 2016 1. InterContinental Bucharest 2. Ioana Hotel Sinaia 3. Epoque Hotel Bucharest 4. Premier Palace Hotel & Spa Bucharest 5. Danubius Health Spa Resort Sovata 6. Grand Hotel Continental Bucharest 7. Radisson Blue Hotel Bucharest 8. Hotel International Sinaia 9. Minerva Hotel Bucharest 10. Kronwell Hotel Brasov

Source: TripAdvisor

top 10 spa & wellness venues, august

Angela Coman, Belle Maison Spa

year by year, from the supply and demand point of view, more and more people living in Bucharest have visited a spa in the last year or two, “which is a good sign for the business. More and more people appreciate good quality and good customer service. The best services will be successful in the long run,” concluded Paraipan.

For Visan the competition is, first of all, with herself. “I want to be better every day and offer better and more qualitative services. In order to be able to remain in clients’ hearts and minds you need to be the best, you have to always come up with something new and better. Here lies the competition, and it doesn’t relate to anyone else, but to your own business. The challenge is to feel the client’s need and to satisfy it before they feel it. Apart from that, every spa has its own pluses, and clients, when they make their choice, know very well the reasons for making that decision,” said Visan.

Apart from that, with more and more spa centers and diversified solu-

tions and the arrival of international brands, Visan says that the market is maturing little by little and the consumer is starting to become more and more educated. “The spa is no longer a luxury service, it has become a need.

One doesn’t go the spa because it’s in fashion, but because one is the direct beneficiary of the result the therapy has on the body. This is the direction that I like and I believe we are moving towards it,” said the Orhideea Spa owner.

This is a sign of maturity that Coman is hoping for as well, believing that educating the target is one of the most important aspects of her job at the moment. “People need to realize that going to the spa is a necessary activity both for your body and mind. We need to start thinking also about ourselves, our health and wellbeing, and go out and prevent instead of simply reacting to a problem that has already manifested itself,” concluded the Belle Maison Spa owner.

1. Puri Bali 2. Aqua by Pescariu Sports & Spa 3. Thai Massage 4. Scoala Iubirii 5. Eden Spa GH Continental 6. Sandal Spa 7. Magnolia Spa 8. La Bibliotheque 9. Central Shakti 10. Viva Sport

Source: TripAdvisor

top spa centers, bucharest Orhideea Spa Bali Spa Radisson Eden Spa Belle Maison Spa La Bibliotheque Salon Decebal Chocolat Salon Colonial Spa Velvet Spa & Wellness Pescariu Sports & Spa

Source: getlokal.ro romanita.oprea@business-review.ro

www.business-review.eu Business Review | September 2016

10 COVeR sTORY

Company well-being programs post healthy progress With employees and job seekers now expecting their packages to go beyond salary and traditional bonuses, the concept of well-being is starting to gain ground on the Romanian market. Providing a “happy” working environment, where individuals can express their creativity and feel like they are part of the organization, might be the key for bosses to score high on the attractiveness scale for current and future generations of workers, pundits told BR.

Diversity: At present, there are over 50 types of well-being programs on the Romanian market

∫ anda sebesi The psychological well-being of its employees is an important aspect for any organization. Recently, it has become a focus for both HR departments and employees of multinational companies active on the local market.

Things have evolved so far at international levels that experts in psychology can scientifically demonstrate the direct correlation be-

tween well-being and its positive impact on work performance. According to international studies, when we experience positive mood/feelings, our brain is on average 31 percent more productive than when we are in a negative, neutral or stressed mood.

Researchers also found that salespeople perform 37 percent better while doctors are 19 percent quicker to make a correct diagnosis when they benefit from psychological and physical well-being. In addition, according to Fortune, the company you work for

can improve your personal/family life (supporting you in your role as a parent) and health (encouraging you to give up smoking or maintain a healthy lifestyle). Miruna Andreescu, HR business partner at Avon Romania, says that well-being discussions are now moving towards the “work-life integration” concept, which means that people are blending their personal and professional life and trying to make them both work.

At present, there are over 50 types of well-being programs on the Ro-

manian market, focusing on different aspects such as physical and psychoemotional health, personal development and various hobbies. According to Creative Bright, parenting, fitness/yoga/massage, nutrition, mindfulness and photography were the most requested well-being programs in the past year.

As Olivia Munteanu, manager, reward at Vodafone Romania, says, well-being includes many areas such as advice for a healthier lifestyle, community intervention by re-inte-

www.business-review.eu Business Review | September 2016

grating parents into the workforce, events showing employees’ children what the company their parents work for does, creating a community with a common interest – sports, cycling, football, volleyball, painting, gastronomy – and organizing thematic events for psychological and emotional balance.

“From our perspective as a supplier of medical services, organizational well-being means both prevention and the creation of healthy life habits.

For many of our customers, we develop both targeted screenings for various common ailments as well as prevention and medical education campaigns,” says Fady Chreih, CEO at Regina Maria. He adds that, as a result of its long experience on the market, the company has managed to gain specialized expertise in many industries, thereby enabling it to create customized packages, starting from the needs of each company. In his opinion, just as optional health insurance is, medical packages for prevention should also be tax deductible. “It would be an additional step that would give more individuals access to such services,” concludes Chreih.

“Well-being is a precise acceptance that a happy employee is more efficient than an unhappy one,” says Dan Petre, business developer at D&D Research. He adds that this concept is important because it is linked to positive results for both individuals and organizations, such as better individual and organizational performance, engagement and lower levels of conflict.

“The concrete parts of well-being are linked to the way emotions interact with behaviors at work, usually recognized as engagement, burnout, satisfaction at work or workaholism,” adds Petre. He says that interest in different aspects of the well-being concept has a tradition on the local market, noting that D&D Research has been measuring occupational stress or burnout for more than 15 years now.

COVeR sTORY 11 “However, well-being, as it is known today, has started to become more prevalent in Romania particularly in the past five years,” says Petre.

As for the tools that can be integrated in the implementation of a well-being program, the D&D Research representative says that they have become more diversified. They range from parenting to lifestyle workshops to recreational camps and programs for personal development.

“All these initiatives have to come as a solution to the needs of both the employees and organization, identified in an initial diagnosis stage,” adds the D&D Research representative.

Companies can also use wideranging organizational surveys that cover the dimensions of the wellbeing concept. In general, if conducted periodically, these measures can prevent and avoid major crises.

However, there are also companies that use dedicated programs to evaluate the level of well-being . “D&D Research has developed several such programs that include both qualitative and quantitative endeavors, which are used mainly to create a master plan for organizational intervention in order to increase the level of well-being in a company,” says Petre.

Tips and tricks for boosting your mood at work

Respect the 20-20-20 rule at work.

Every 20 minutes take a break of 20 seconds and look at an object that is 20 steps distance from you.

Bring a flower to the office. Plants make you feel more satisfied at your workplace, help you be more patient, avoid frustration and be more enthusiastic at work. They also help you to avoid health problems and increase your productivity by reducing your stress level.

Source: Regina Maria

our partnership with D&D Research, tives in the measured areas will be rewe are excited that we will be able to warded. deliver free of charge results that will be extremely useful in the develop- Where does Romania stand? bR supports well-being As a unique endeavor in Romania, ment of effective and sustainable According to Petre, multinational Business Review, D&D Research and well-being policies to the companies companies have embraced the wellthe Faculty of Psychology through the that participate in the study,” says being concept more than Romanian Occupational Health Master’s Degree Adina Cretu, marketing manager at ones. Local organizations’ reluctance Program are planning to measure the Business Review. The study is being to do so is not because of lack of fawell-being of companies in Romania conducted in seven industries: miliarity, but more because they asand their employees. The research pharma & health, telecommunication, sume that implementing such will generate an Organizational Well- IT&C, professional services, retail, programs is resource-intensive. being Index (OWB), which aims to banking and finance and FMCG. The “From our experience, we can say that recognize and award the highest market research will be conducted effective well-being tools and proscores and positive initiatives across between September and October and grams can be implemented in all the indicators measured by the study. more than 15 areas will be measured, types of companies, regardless of “The OWB Index is not just the first including work satisfaction, personal- whether they are local, international, that uses a dedicated scientific tool, professional life conflict, engagement large or small.” but it also measures topics of great in- and healthy behaviors. The project Dana Tudor Tanase, founder of terest within corporations, like will end with a gala where companies Creative&Bright, shares this stance, burnout or workaholism. Throughout with outstanding results and initia- saying that the Romanian view is still that well-being doesn’t have a measurable impact on the organization’s bottom line and doesn’t directly reflect its performance indicators. “Despite this, there are several industries that implement such programs a lot, Region Purpose Wb social Wb Financial Wb Community Wb Physical Wb including IT services, financial services, the Big Four, and banking and World 18 24 26 25 24 telecommunications,” says Tanase.

Americas 36 42 30 35 33 As for the budget that companies Europe 23 28 40 29 24 from her portfolio allot to such proFormer Soviet Union 22 28 28 24 18 grams, she says the sum varies beMiddle East and North Africa 12 22 25 25 23 tween EUR 5,000 and 20,000 per year, Asia 14 19 25 22 23 depending on their needs.

Sub-Saharan Africa 14 17 9 20 21 As in many other fields of activity, the well-being concept is still emergNote: ing in Romania and is generally conPurpose Well-Being: Liking what you do each day and being motivated to achieve your goals nected with occupational health, Social Well-Being: Having supportive relationships and love in your life internal communication or CSR. “We noticed that employees are very open Financial Well-Being: Managing your economic life to reduce stress and increase security to well-being programs for healthcare, Community Well-Being: Liking where you live, feeling safe and having pride in your community work-life balance and personal develPhysical Well-Being: Having good health and enough energy to get things done daily opment. In the past four years we have seen an increased interest in imSource: Gallup-Healthways Global Well-Being Index, 2014, cited by Creative & Bright. plementing well-being programs

big picture of wellbeing (Wb) worldwide

www.business-review.eu Business Review | September 2016

12 COVeR sTORY

Photo: Mihai Constantineanu

Madalina Racovitan, KPMG

through gamification platforms or complex internal eco-systems,” says Petre.

As trainer and coach Alis Anagnostakis, founder of Mind Learners, says, there are already positive leadership training courses that help managers create an open mindset and a framework where their teams can be happy.

Encouraging autonomy, learning opportunities aligned with individual interests, clear communication of goals, creating solid and authentic links between organizational and individual values, encouraging cooperation versus competition and introducing playful elements into the work system – all have a direct impact on staff well-being . “From mindfulness programs for employees to individual coaching and more flexible processes that enable individual initiatives and the introduction of ‘gamification’ systems within employees’ learning and development processes –are all courageous attempts to create a working environment where the individual can find joy and sense,” says Anagnostakis.

In Romania, well-being programs have started to become mainstream in the last couple of years, together with the rise in popularity of initiatives such as on-site health assessments or medical interventions (e.g. flu vaccines), on-site massage sessions, company-sponsored subscriptions to private medical clinics, dental clinics or gyms, sporting events, corporate libraries as well as fun and relaxation initiatives – from days out or parties to sponsored tickets to concerts, plays or other cultural events.

Alis Anagnostakis, Mind Learners

“These are just some of the initia- spired officer at Buticul de Inspiratie Telekom, ArcelorMittal and Avon are tives that employees have started to (Inspiration Boutique) and communi- some of the companies that have inget used to and even demand when cation, employer and personal brand- cluded well-being programs for their moving to other employers,” says ing consultant, while in the past six employees in their HR strategy. For Madalina Racovitan, tax partner at years lifestyle courses for employees example, ArcelorMittal set up a proKPMG, head of people services. De- were a dream that was not compatible gram called Leadership through the spite the growth in the number of ini- with business objectives, things have Power of Example through which the tiatives that organizations are offering, changed dramatically. “Now it is more company facilitates the creation of an she says that there is room for a more obvious that HR programs are more environment where its employees integrated implementation of such and more in line with international discuss the strengths and problems of initiatives in the workplace. “For ex- trends. Companies understand that their safety at work openly. “If we ample, offering perks like the above the well-being of their employees is were to translate into numbers our inwill not bring the desired impact, if an essential resource that determines vestment in safety at work, it is an anthis is not combined with good man- their performance.” nual investment of EUR 840 per agement practices that can have a employee,” says Mihaela Craciun, HR great impact on employee stress lev- How firms promote staff director at ArcelorMittal Galati. She els and overall well-being. Although wellbeing adds that last year, the company Romanians still seem to be more at- Benefits such as lunch vouchers, launched a free package of additional tracted by well-being initiatives and medical services and insurance and medical services for its employees. benefits that translate directly into paid time off while on vacation, an- “Also, both our employees and their cash, organizations should focus nual bonuses and salary raises have families get financial support for more on extending the scope of their almost became standard. In other treatment in the event of an incurable well-being programs to areas outside words, companies need to adapt their or severe illness. In addition, they health and fun,” says Racovitan. An bonus structure for employees ac- benefit from free transportation if increase in autonomy, or work sched- cording to their demands if they want they need medical assistance abroad,” ule flexibility, change management to retain and make them happy. As adds the HR manager. She says that programs, open communication, pundits say, employees and candi- each year the company runs activities value-based leadership, diversity, cor- dates are increasingly choosing to for ear and eye protection, specific porate social responsibility and per- work for companies that have a wider medical investigations, campaigns for sonal growth initiatives can all create approach to their employment offers. vaccination against seasonal flu for all a sustainable positive impact on the “During the interview, candidates are of its employees and periodical lung, overall well-being of employees, and interested in other benefits aside blood pressure and glucose tests for in turn, on their organizations, if in- from the salary. And many times they those who work in the primary zone corporated in a well-being program in are attracted by those companies that and rolling mills (steel) one. “We have a strategic and integrated manner. invest in their personal life,” says also a pilot program that offers coun“I think that we are still far from the Munteanu of Vodafone. She adds that seling for those who want to give up moment when constructive and col- both in recruiting and retaining, life smoking and we already have 80 emlaborative cultures and concern for insurance and medical subscription ployees enrolled,” says Craciun. In adthe happiness of individuals that have become a major factor. “It is dition, ArcelorMittal has an indoor work in organizations become the very important for every employee to and outdoor sports facility where emnorm, but I can see encouraging steps have two basic needs – health and ployees can play football, volleyball, in this direction,” adds Anagnostakis. safety – covered,” adds Munteanu. basketball, handball, badminton and According to Dana Tudor, chief inRaiffeisen Bank, Vodafone, Orange, ping-pong.

www.business-review.eu Business Review | September 2016

14 COVeR sTORY As for the evolution of medical packages, Chreih says that they have diversified a lot, both in terms of users (large and mid-size companies, SMEs, start-ups and individuals) as well as the services offered. “The demand for medical packages increases every year and, looking backward, the number of our subscriptions has doubled in less than four years. At present, we have over 360,000 subscriptions,” adds the CEO of Regina Maria.

Elsewhere, Avon Romania offers its employees medical packages, life insurance, fresh fruit on a daily basis, education sessions on prevention through partnerships with dental clinics and access to a gym network in Bucharest and all major cities. “An interesting benefit we started last year is a personalized support program for all employees: paid therapy sessions in partnership with psychologists,” says Andreescu. In addition, the company offers Bookster, an online library where every employee can borrow a book, based on a subscription paid by the company.

Also, Avon has an internal development program for its employees, which has been rolled out for several years. It’s about YOU is a training program with a strong personal development touch, as the topics are suggested by the employees: parenting, fashion, nutrition, craft workshops, improvisation, mindfulness, health and prevention sessions and the now-famous desk massages.

“Three years ago, our main objective was to enhance work-life integration for employees by giving them the opportunity to do something for themselves during work hours and to encourage them to take a much needed break from the daily frenzy.

Now, we are also moving towards personalization and the program will be split into smaller actions for each department, as per specific needs and preferences,” says the representative of Avon Romania.

Elsewhere, Vodafone Romania created an identity for its well-being concept last year, called Re-Fresh, through which the company intends to encourage its employees to lead healthier and more balanced lives.

The project included a series of workshops on health, dentistry, nutrition and sports, and a fruit-bar, lemonade bar events, smoothie bike and massages at the office. Last year, the mobile operator combined two components, the well-being concept and volunteering with the aim of raising money for social causes. Additionally, it provides parking and showers for employees who cycle to work, while those in Bucharest, Craiova and Brasov can borrow Vodafone bicycles and earpieces for free.

ness, trust, respect and inspiration can make employees feel happier and more productive. As Harvard Business Review magazine (HBR) says, hundreds of studies conducted by pioneers of positive organizational psychology demonstrate that a workplace with a positive work culture leads to improved employee loyalty, engagement, performance, creativity and productivity. The same source says that the most powerful way leaders can improve employee well-being is not through programs and initiatives, but rather through day-to-day actions. For example, data from a study run at the Karolinska Institute, and quoted by HBR, show that having a harsh boss is linked to heart problems in employees. On the contrary, leaders who are inspiring, empathetic and supportive have more loyal and engaged employees.

For example, one Fortune 500 corporation in the Bay Area in California has a system in place whereby the CEO is immediately informed if an employee contracts a major illness or has experienced a personal tragedy.

Within 15 minutes, no matter how busy he is, the CEO makes time to call that person and offer his support.

A similar approach was put into practice last year on the occasion of the tragedy in the Colectiv night club, in which several Oracle Romania employees lost their lives or were injured.

Safra Catz, CEO at Oracle Worldwide, came to Romania to offer her support to the victims’ families and friends. “I spent the past days in Bucharest together with other global leaders from Romania and I met with the teams affected and stood by the families and friends of our employees. All of our attention is focused now on the needs of our employees, their families and friends,” stated Catz at the time. She is ranked as the 12th most powerful woman worldwide, according to Fortune.

Elsewhere, Craciun of ArcelorMittal Galati, says the company launched a transformation program in 2009 in which a communication portion has recently been included. It was developed over ten months when all the employees met personally with the CEO of the company and its operational managers and debated issues related to the improvement of health and safety at work.

According to HBR, our greatest need, after food and shelter, is social connection — positive social relationships with others. Therefore, if organizations manage to create work environments characterized by these interactions, they can benefit from very low staff turnover and enjoy superior results for both employees and companies.

The route to employee hap- ‘Presenteeism costs 10 times piness more than absenteeism’ Many international studies have found that an organizational culture characterized by forgiveness, kind-

Despite the fact that well-being has only recently been introduced into Romanian culture, studies show its

30 percent of Romanians go to the doctor only if they have symptoms or feel pain

1 out of 5 Individuals admits falling asleep at work

19 percent of Romanians go to the doctor for prevention

18 percent of Romanians discovered they had a new disease in the past 12 months after going to the doctor for screening

1 out of 3 Individuals blames the beverages they drank the previous night

7-8 years is the life expectancy gap between Romania and other countries

*Source: GfK study, Eurostat data, cited by Regina Maria

2 out of 3 Individuals blame a large lunch for their fatigue

Source: Regina Maria

positive impact on the local society.

According to a study conducted by PwC Saratoga in 2015, and quoted by Creative & Bright, regarding the absenteeism ratio generating additional costs for companies, absences accounted for 2.2 percent of working days last year.

This represented a cost of EUR 703 / employee across the market, with retail posting a lower annual cost (EUR 440/employee) and the pharmaceutical sector a higher one (EUR 1,132/employee). As Chreih says, the health of employees has a real impact on a business, whether we speak about high efficiency and productivity or costs generated by long sick leave. In his opinion, there is a need for a major long-term national educational and information campaign from both public institutions and private companies. “Such an endeavor needs a national medical infrastructure that covers both rural and urban

areas,” says the representative of Regina Maria.

In addition, according to Arnaud Bernaert, senior director, head of global health and healthcare industries of the World Economic Forum, global leaders are becoming increasingly focused on truly understanding the health and productivity of their populations. “We need standardized global measurements and comparative data to help nations identify their biggest opportunities for improving the lives of the people within their borders. These insights will guide future investments in health and wellbeing."

According to EHS Today, one of the biggest US magazines for environmental, health and safety management professionals in the manufacturing, construction, and service sectors, “presenteeism” (where employees show up for work but don’t perform at full capacity) costs businesses 10 times more than absenteeism. As the publication says, presenteeism impacts not only workers who are "absent but present," but also their coworkers. According to a GCC Insights report by Global Corporate Challenge (GCC) quoted by the title, on average, employees cost businesses the equivalent of three months per year in lost productivity. The report found that while employees were absent from work an average of four days per year, they confessed to being unproductive on the job for 57.5 days

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COVeR sTORY 15

Olivia Munteanu, Vodafone Romania

each (about three working months).

As one of the authors of the study says, companies that intend to improve their productivity should focus on reducing presenteeism.

“This study indicates that businesses are focused on the wrong measure of productivity. Absenteeism is not the major culprit. Businesses use absenteeism rates as an indicator of engagement and productivity because it’s easy to quantify,” says Olivia Sackett, GCC Insight’s data scientist. Although 57.5 days per year sounds very high, it corresponds to a person working at 75 percent of their maximum productivity level. The cost of presenteeism to businesses was also 10 times higher than absenteeism. Absent workers cost employers around USD 150 billion per year, but those who went to work and were not fully productive cost USD 1.5 trillion per year.

GCC’s study on presenteeism included nearly 2,000 employees and was validated against the World Health Organization’s (WHO) Workplace Health and Productivity Questionnaire (HPQ).

Last but not least, the Center for Mental Health calculated in 2015 that presenteeism from mental illness alone costs the UK economy GPB 15.1 billion a year. It has been linked to errors, lower performance, lower wellbeing and the exacerbation of existing health problems – causing greater productivity loss than absenteeism.

Those with a supportive work environment, defined as having supportive colleagues and a good relationship with managers, felt they did not have to go to work when ill, and were both more satisfied with their jobs and

Dan Petre, D&D Research

healthier. People with a positive outlook were more likely to be willing to carry on with their work while sick.

Generation Z needs flexibility As Racovitan of KPMG says, one key element in designing attractive benefit packages for the younger generations is not the choice of benefits, but their flexibility. While 10 years ago, many employees were happy with benefits packages that included health subscriptions and meal tickets, the younger generations want to be more in control and choose their own benefits. “Flexibility is key, and it will continue to be for Generation Z which will soon enter the workforce. We are speaking in Romania about so-called ‘cafeteria benefit plans’ (plans under which employees can choose from various benefits those that fit their needs best, up to a specified cash value) and we believe that this is a trend that will continue to grow in the next couple of years,” she says. “Solid HR practices are not necessarily ‘onesize-fits all’ and we encourage organizations to continue to understand their own employees and build their own programs, which would produce best results in their own contexts.”

As Anagnostakis of Mind Learners says, more and more managers are interested in how they can create a positive environment for their teams beyond the effectiveness of the business. “Organizations are becoming more aware that in a world where the definition of work is changing and new generations come with a very different way of thinking, instead of the cult of work and sacrifice that we see in employees of around 40,

youngsters expect the organization to be open, the job to be fun and the work program to be flexible. They come to the interview and say: ‘It is important for me to be happy – what do you do to help me feel like this at work?’,” says the representative of Mind Learners.

Andreescu of Avon says that in Romania, Millennials (e.n. individuals between 18 and 34) have strong views when it comes to their own wellbeing. As she explains, they prefer to disconnect rather than integrate their work and personal life. “They still check emails sometimes after work hours, but they are comfortable doing it as long as it’s on their own terms and because they are the ones who make that choice,” she says. “We are living in a VUCA world (e.n. volatility, uncertainty, complexity, ambiguity) so companies, regardless of their size, have started to understand that the way we work has changed, people processes and concepts like employee engagement have transformed and employees expect to have autonomy in making decisions and delivering results,” says Andreescu.

employer branding

adds Andreescu of Avon.

As Richard Branson once said, "If you run a business, put on top your employees, then your consumers, and then your shareholders." "Authentic employer branding that is not limited to a cleverly-packaged recruitment process is an important factor in increasing employee loyalty and retention. It is also an effective tool in attracting candidates who fit the values and demands of an organization,” says Tudor of Buticul de Inspiratie.

According to Boston Consulting Group, employer branding is ranked fourth within HR programs for its impact on profit.

In such a context, the personal value a company offers its employees starts to become more important, with the most innovative ones looking for ways to offer their teams valuable experiences. "At international level, the creation of work-life balance is an outdated concept and is being replaced by ‘how to blend work and life’. The phenomenon is influenced mainly by new technologies that blur the line between professional and personal life," adds Tudor.

But despite the “employer of choice” concept becoming more popular lately, many employers still don’t understand the importance of becoming a favorite employer. “This concept is representative of a totally new concept of corporate culture and means that people choose to work for a specific company, dedicate themselves to its success and remain loyal despite being pursued by extremely persuasive recruiters,” says Craciun of ArcelorMittal.

More companies in Romania now focus on the concept of employer branding, in an attempt to retain their employees more easily. “Employees are your first brand ambassadors. Positive emotions like being proud of your job, your team and your projects are enhanced by truly understanding your role within the company, its mission and vision and what differentiates it from others. If this is not happening, the employees will find another job where they feel good,” anda.sebesi@business-review.ro

www.business-review.eu Business Review | September 2016

16 COVeR sTORY

Occupational health is a must for a healthy business Professor dragos iliescu, PhD, Coordinator Master of Science in Organizational Health and Human Resources Performance at the Faculty of Psychology within the University of Bucharest, tells Business Review about the importance of the occupational health program within the university and explains its long-term significance for the local business environment. ∫ anda sebesi When was the program for occupational health established within the University of bucharest?

The program was set up in 2012 and has been improved gradually by introducing new courses and attracting professors each year. At present, it is definitely one of the most powerful human resources, organizational and work psychology academic programs in Romania. Establishing such a program was a normal step and it was in line with the development of this field at international level.

What do you consider to be the main benefits of this program for the local business environment?

There are two direct benefits and a lot of indirect ones. First, the local business environment has the opportunity to form specialists in the field of occupational health. I am sure that a large number of HR specialists or managers from companies that are active in Romania identify areas like stress and emotions, well-being and health, healthy lifestyle, work-family balance and mental illness in the workplace among their current priorities for their employees. Although there is an increasing interest in these issues, there aren’t many specialists that can offer support and build credible and effective programs in this field. This is a gap we fill with about 15-20 very good graduates per class.

Second, the existence of a well performing academic program in the field of occupational health in Romania offers the opportunity to conduct some local surveys. The mission of a university is not just to develop specialists – in the end a university is not a professional school. An equally important mission that the University of Bucharest has is to contribute to the development of knowledge, and this is possible through scientific research.

Part of this research is fundamentally connected to international trends, while the other portion is adjusted to local needs – it looks for and directly solves some problems facing Romanian society or the local players on the

social scene. The members of our program of studies have focused and still focus on the functioning of Romanian organizations in general or specific local companies, on the well-being of Romanian employees in general or those active in specific fields or sectors of activity. To conclude, there are two major advantages: local specialists and the opportunity to do research with a direct impact on local needs.

How many groups have graduated from this master’s program so far and where did they come from?

There have been three promotions so far. The majority were psychologists (about 50 percent), but we’ve also had doctors and HR specialists with various backgrounds.

Why did they take these courses?

It was about developing their expertise in occupational health. Some of them came directly from the company they worked for which was facing problems in this field, while others wanted a career in occupational health, a sector

that is extremely attractive and very well connected to the zeitgeist.

How have graduates put the knowledge they gained through the program into practice?

The majority of our graduates work directly in this field of activity. They are very competitive, in part because we train them not just from the technical perspective but also from the relational one. Some of our professors are consultants or specialists known in the Romanian HR industry and they are active in different companies and willing to transfer their consultancy expertise to our students.

What is happening abroad in terms of well-being practices, considering that in Romania this field is still emerging?

More than anything else, we’re seeing a serious evolution towards evidencebased programs that are based on scientific evidence. The times when a consultant could recommend the most whimsical interventions just based on his or her expertise (more often doubt-

ful) have passed. After 20-30 years of research in this field, we’re starting to understand exactly what really works or doesn’t. And so many myths are simply crumbling.

What countries implement the most well-being programs?

European countries, and especially Western European ones, are certainly among those that do, probably because of the difference in legislation compared with the US. Belgium (especially in the Flemish area), the Netherlands, Norway, Sweden and Finland, Spain and Germany have strong programs and impressive practical interventions of this kind. There are also other countries, but these ones are probably the most effective in understanding the impact of occupational health programs and implementing them successfully.

Dragos Iliescu is also the president of the International Test Commission. anda.sebesi@business-review.ro

www.business-review.eu Business Review | September 2016

inTeRVieW 17

Porsche engineering Romania: Cluj team may grow to hundreds of engineers July saw the opening of Porsche Engineering Romania in Cluj-Napoca. With a focus on software and function development, the sixth and newest subsidiary of global engineering services provider Porsche Engineering Group GmbH completes the overall spectrum of services provided by its other locations in Weissach, Bietigheim-Bissingen, Prague, Shanghai and Nardo. Location manager Marius Mihailovici told Business Review about the company's plans to grow its Cluj-based team and become actively involved in the city's academic automotive engineering landscape.

Porsche engineering Romania has partnered with the Technical University of Cluj-napoca to develop a master's program, a sign of the company's long-term involvement plans. What are the goals of this partnership? are you planning to become involved in society in other ways?

We are definitely here to stay and we are planning to be an active player in the academic environment of automotive engineering in the years to come as well. Besides the master’s program that will most probably be launched in 2017, we will organize specific lectures and seminars with Porsche Engineering experts in universities and also offer scholarships to the best graduate and undergraduate students in their senior year. The main goals of the partnership are to train more specialists in the highly specialized field of automotive engineering and to be able to recruit the best trained engineers for our local team in Cluj.

Our contribution to the local community will be primarily through education. While we have just entered a long-term partnership with the Technical University, we are also in touch with Babes-Bolyai University, the other top university in Cluj, in order to explore ways to cooperate.

∫ GeORGeTa GHeORGHe You are planning to hire 20 engineers, who will work in software and traditional vehicle development at Porsche engineering Romania. are you eyeing local talents? also, are you planning to increase your team further in the future?

Our local team numbers seven engineers at the moment and we are planning to reach 20 by the end of 2016. Our main strategy is to grow sustainably and, in the long run, our team in Cluj may grow to hundreds of engineers.

We want to attract the best talents for our Romanian subsidiary, regardless of the city they come from. Porsche Engineering chose Cluj because of the top universities educating students in the automotive field, but we are also looking at candidates from other cities – as long as they are passionate about automotive and software engineering and willing to relocate to Cluj, they may be just the people we are looking for.

What kind of projects will the Cluj-based team work on? What role will the local team play within your global operations?

Our team in Cluj will work for the same customer portfolio as the company’s other subsidiaries, with a focus on software development and digitalization.

The local engineers will work, for example, on developing human machine interfaces (HMI) and car-to-car communication for Porsche cars. The range of services provided by the local team is complementary to Porsche Engineering’s other development locations and does not duplicate the competencies from other countries the company operates in. Therefore, Porsche Engineering Romania is perfectly integrated and plays an equally important role in the structure of the organization as the other subsidiaries.

You chose Cluj-napoca as the location of your Romanian subsidiary. What are the advantages offered by the city? in terms of costs, how competitive a location was Cluj?

The choice of Cluj-Napoca for the youngest subsidiary of Porsche Engineering was based on several consid-

CV: Marius Mihailovici was appointed location manager of Porsche Engineering Romania in July. He joined the firm from Alcatel-Lucent Romania (Timisoara), where he spent 16 years and held several positions, from R&D GSM validation engineer to the director of the R&D Department.

Mihailovici graduated from the Politehnica Timisoara University in 1998.His areas of expertise include R&D strategy, software project management and software integration & validation. erations the global management analyzed before they first travelled to Cluj – the presence of two top universities (the Technical University and BabesBolyai University), well-trained workforce, a lively start-up scene and a dynamic IT and auto market. Also, the moment they arrived in Cluj they got confirmation this was the right place for them to extend their global presence – the warmth and dedication of the people they met here was the guarantee that in Cluj they would not only find well-trained engineers, but also friendly and principled people,

who would perfectly integrate into the company’s organizational culture.

In terms of costs, Cluj is definitely a competitive market, as many IT companies have roots or have established subsidiaries here. We are aware that the competition is tough, but we are confident we can attract the best qualified engineers through both financial and non-financial benefits.

Working for a brand like Porsche on international innovative projects and being part of a passionate team can also trigger the interest of many software and mechanical engineers.

This is the youngest subsidiary of Porsche engineering Group GmbH. are you planning to expand to other Romanian cities, such as bucharest, perhaps?

We are new on the Romanian market and we have just settled in Cluj, a city with plenty of potential that can help us reach our goals in the long run. For now, our extension plans are limited to Cluj – we want to build a highly qualified team here, with top engineers from all over the country interested in automotive and software engineering.

We think the two universities can provide us with the right number of young professionals in the years to come.

For the time being, we are focusing exclusively on developing our subsidiary in Cluj and, as long as this city meets our needs and expectations, we don’t see any reason why we should look at another location. georgeta.gheorghe@business-review.ro

18 EDUCATIoN

www.business-review.eu Business Review | September 2016

Companies grappling with bad perception of local vocational education With fewer than 12,000 Romanian students having graduated from a school providing professional training in the 2015-2016 academic year, foreign companies are looking to intensify their efforts to promote the vocational education system in the country. ∫ oVIDIU PoSIRCA The German, French and Austrian business communities in Romania have been struggling in the past few years to make the vocational training system more appealing to youngsters, but they have had to deal with the bad perception that professional education has had in the country since the fall of communism.

Companies sound warnings of shortage of skilled workers

Challenge: Companies want to convince more young people to enroll in professional training

“The challenge is the perception held by most parents and teachers, who believe that the only solution for their children is a theoretical high school or university and that practical skills are not necessary. In fact professional schools are ideal for young people who are practically oriented, not just for children with poorer marks or limited skills. Young people have the chance to gain a good job, to develop their career and also to continue their studies in parallel with the job if desired,” Rudolf Lukavsky, commercial counsellor at the Commercial Section of the Austrian Embassy in Bucharest, told BR. Adriana Record, executive director of the French Chamber of Commerce in Romania (CCIFER), added that a massive effort is underway to upgrade the school curriculum and this also needs a lot of input from the Ministry of Education.

“We would like to get involved in the identification of areas of competence based on clusters of jobs, around companies that can offer high-level specializations and can contribute to the revaluing of these areas of education,” Record told BR. She said that France has implemented this system in the past few decades and over 40 percent of students now attend a professional school.

In 2012, Romania upgraded its legal framework so that the professional education system adopted some of the main features of the dual

www.business-review.eu Business Review | September 2016

EDUCATIoN 19 Number of students enrolled in Romania's professional education system Year

Number

2010 2011 2012 2013 2014

54,538 12,382 19,734 26,493 50,788

Source: National Statistics Institute (INS)

Youth unemployment rate in Romania/EU average

Adriana Record, CCIFER

Anca Hociota, AHK Romania

Rudolf Lukavsky, Austrian Embassy

Year

Rate

2012 2013 2014

22.6% / 23.3% 23.7% / 23.7% 24% / 22.2%

Source: Eurostat education system currently in place in Germany, according to Anca Hociota, manager of membership and vocational training at the RomanianGerman Trade and Industry Chamber (AHK Romania). She added that German companies had been warning for a few years that it has been getting very hard for them to find skilled workers on the local market.

Essentially, the dual education system means that a teenager attends school while also getting the chance to get hands-on experience in manufacturing units. Students enrolled in this system get a small sum of money each month and can secure a job after graduation.

Pundits say this could be one of the avenues to decrease youth unemployment, which has been hovering at over 20 percent in recent years.

‘Lack of stability’ among the issues hampering vocational education The AHK Romania representative says that the professional education system has been on a positive track and more pupils and companies are becoming interested in it, although the pace of development could be improved. She suggested that the lack of stability of the whole system puts brakes on the progress of this initiative.

“In the past few years we have had many changes at the helm of ministries and the lack of continuity has been felt. There were good intentions, but the measures that needed to be taken did not necessarily reflect what the previous official had in mind. So, we felt some sort of a reduction in the

development of professional education and we think it could have been better,” said Hociota.

Lukavsky of the Austrian Embassy added that red tape dents efforts to improve the image of dual education and all existing schools are working to attract a declining number of students.

Experience of companies with trainees, mainly in the technical field Partnerships between private companies and public schools for professional education have been promoted mainly in the Tranyslvania region, including Satu Mare and Sibiu cities. In this region, there is a strong manufacturing base, primarily in the automotive segment, and more recently in the aerospace industry. According to Hociota of AHK Romania, the experience of companies with students enrolled in professional education has been largely in the technical field.

But the dual education initiative can also be applied in the retail industry. For instance, the Commercial Section of the Austrian Embassy along with several Austrian companies is already successfully collaborating with the Costin C. Kiriţescu Economic College in Bucharest on a pilot project for dual education in the field of retail merchants called o’SCAR and with Aurel Vlaicu Technological High School in Cluj-Napoca in the field of welding/metal working on an initiative named STAR-T. Several companies are involved in the o’SCAR program, including retailers Billa and Hervis and telecom operator Telekom Romania.

Edit Szilágyi, specialist for training and organization development at Telekom Romania, says the implementation of the dual education program remains difficult also because the general interest is to promote the available educational offer in high school classes rather than in professional schools.

She added that proper educational counselling given before a pupil enters high school could encourage more teenagers to choose this vocational training path.

“Also, those high schools where the pass rate of the Baccalaureate exam is low (below 40 percent) could be calibrated to professional schools, ensuring training programs in dual education for jobs needed by the business environment,” said Szilágyi.

Asked about Telekom Romania’s experience in the o’SCAR program since 2015, she said, “Students enrolled in this education system are more open-minded and develop their problem-solving skills through practical sessions. Through this process, they have a mentor in the organization who ensures the knowledge transfer, and this also means that the learning content of the program is aligned to the real needs of the job market,” said the specialist.

What positions are in high demand right now?

The demand for skilled workers in so great in the country right now that companies are hunting future specialists right out of schools, according to Ciprian Daraban, national operations manager at Adecco Romania, the recruitment consultancy. He added that

11,600 number of graduates of the professional education system in the academic year 2015-2016

Source: National Statistics Institute (INS)

painters, welders and electricians are sought after by firms all around the country.

Some companies are even trying to relocate personnel from the east of Romania, which has a less developed industrial sector, to the west of the country, added Raluca Penes, HR coordinator at Smartree, the recruitment consultancy.

Although it would be too much to conclude that Romania is seeing the rebirth of the professional education system, recruiters say it is obvious that demand for skilled workers has grown exponentially in the last few years.

Record of CCIFER said that professional schools under public-private partnerships have been created in large industrial basins in cities such as Timisoara and Pitesti.

She added that although companies are working to train agricultural technicians and electricians, the role of the public education system cannot be ignored on the long run. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | September 2016

20 INVESTMENTS

Turkish woes to have limited impact on local economy The failed coup in Turkey will have only a modest impact on the Romanian economy, as the level of integration between the two countries remains limited, according to pundits.

Talking economy: Risks stemming for Turkey’s political crisis are manageable in Romania, say pundits

∫ oVIDIU PoSIRCA There are some 14,000 companies with Turkish capital in Romania, with a combined share capital of USD 739.5 million, active in various sectors including retail and construction. According to statistics, total investments by Turkish companies in Romania, direct and indirect (made via companies registered in other countries), exceed EUR 4 billion.

“There are several companies in Romania with Turkish capital, which have made important investments in the local market and are currently growing and expected to continue their development in the future,” representatives of Garanti Bank told BR. The lender is part

of a Turkish financial group.

Romania ‘can manage risks stemming from Turkish political crisis’ “Even in the event of a potential crisis in Turkey, the impact on the Romanian economy should prove to be manageable,” Mihai Patrulescu, senior economist at UniCredit Bank, told BR. At the end of last year, Turkey was the sixth largest exporting market for Romania and accounted for around 3.9 percent of the country’s total exports.

Meanwhile, the European Union accounted for 75 percent.

According to the Department of Foreign Trade and International Relations within the Ministry of Economy, Ro-

manian exports to Turkey were down by 8.7 percent year-on-year to EUR 2.1 billion in 2015, while Turkish imports were up by 17.1 percent to EUR 2.2 billion.

In the first four months of 2016, Romania’s exports to Turkey fell by 19.7 percent to EUR 766 million, while imports from the Balkan country had gained 20 percent to EUR 824.5 million compared to the same period of last year, according to provisional data from the Ministry of Economy Turkey’s total investment stock in Romania amounts to roughly 1 percent of the total foreign direct investments (FDI).

“Given this, a political crisis in Turkey would be more of a missed opportunity

for Romania, which could benefit from a diversification of its exporting markets,” Patrulescu told BR. “When it comes to investments in financial instruments (i.e. sovereign bonds), the typical investor in Romania comes from the EU. However, the majority of investors in Turkish financial assets are US based. Therefore, in the event of a moderate political crisis, we expect Romanian financial assets to remain stable,” added the economist.

Business as usual for Turkish companies in Romania In the case of companies with Turkish capital that are active on the local market, the political crisis back home will not dent their operations, according to

www.business-review.eu Business Review | September 2016

Neil McGregor, managing partner at law firm McGregor & Partners.

“We therefore think that implications for Romanian companies with Turkish capital are likely to be very few, with one exception. That exception is companies which do business selling travel to and holidays in Turkey, which have probably already felt the effects of the terrorist attack at Istanbul airport. We have not heard of any problems experienced by Romanian companies with Turkish capital caused by any of the Turkish government's recent legal measures in response to the security situation there," McGregor told BR. Shortly after the crisis in Turkey erupted, the main associations of Turkish businesspeople in Romania swiftly organized a press conference in which they claimed that the economy would not be impacted by the failed coup.

Tamer Atalay, the head of the Romanian-Turkish Chamber of Commerce, went so far as to say that some journalists were wrong to claim Turkey wasn’t a democracy.

“This country has a president elected with 51 percent of the vote. How can he (President Recep Erdogan – e.n.) be called a dictator? We love Erdogan and we love democracy,” Atalay told a crowd of journalists in late July.

Representatives of Garanti Bank said

INVESTMENTS 21 that the lender’s operations were not impacted by the international context.

"We will continue to grow on the local market on all business lines and further strengthen our position in the Romanian financial-banking system," said representatives of the bank.

Strong Turkish retail and manufacturing presence In the past 26 years, the Turkish investment community has constantly gained confidence in the local economy and entrepreneurs have opened businesses in various sectors. However, there are some areas that stand out, such as retail and manufacturing.

According to the National Office for Trade Registry (ONRC), the biggest Turkish contribution to the share capital of a local company was made by Dogan group, which controls locally the KanalD TV channel.

There is also the manufacturer of bearings URB Group, which has over 1,700 employees. Turks have also invested heavily in the wholesale of fruit and vegetables and in the production of food products.

Romania’s top political brass claim Turkey remains a strong ally Both the president, Klaus Iohannis, and

PM Dacian Ciolos issued statements shortly after it became clear that the attempted coup in Ankara had failed.

“Turkey is a strategic partner of Romania and an ally within NATO, and the stability of the country, based on respect for democracy and democratically elected institutions, is important for regional, European and international security,” said the president.

PM Ciolos added that Turkey had to swiftly return to the constitutional order and the rule of law. Reactions from the leaders of political parties were fairly restrained, and the National Liberal Party (PNL) was among the few political organizations that publicly called for a return to democratic stability in Turkey.

Meanwhile, the former president Traian Basescu, now the leader of the Popular Movement Party, said that Turkey was an essential energy node through which natural gas from Azerbaijan and oil from Iraq flow into Europe.

“Turkey is the security buffer for the EU and NATO against Islam and the Russian Federation,” wrote Basescu on his Facebook page.

In early August, the Turkish ambassador to Romania, Osman Koray Ertas, said that in recent weeks there had been some sort of “obsession” regarding

EUR

2.1 bln

the amount of Romanian exports to Turkey in 2015, down 8.7 percent y-y

Source: Department of Foreign Trade and International Relations within the Ministry of Economy

EUR

2.2 bln

the amount of Romanian imports from Turkey in 2015, up 17.1 percent y-y

Source: Department of Foreign Trade and International Relations within the Ministry of Economy

President Erdogan and “unfortunately” this was also the case in Romania.

“Erdogan is not a monarch or some sort of emir of a country in which democratic principles are not present,” said the diplomat. ovidiu.posirca@business-review.ro

Top 20 local firms with biggest capital from Turkey in 2015 Company

Sector

Turkish share in capital Turnover

Net profit/loss

Average number of employees

Dogan Media International Rulmenti

TV broadcasting Manufacturing of valves Ferrous metal production Clothing retail Production of other foods Production of other plastic materials Wholesale retail of intermediary products Unspecialized wholesale trade Production of canned fruit and vegetables Production of canned fruit and vegetables Production of biscuits and cookies Wholesale trade of cosmetics and perfumes Wholesale trade of fruit and vegetables Intermediation of specialized trade with specific products Wholesale trade of fruit and vegetables Production of canned poultry Wholesale of waste Wholesale of fruit and vegetables Construction of residential and nonresidential buildings Whole trade of machines and equipment

RON 345 mln

RON 90 mln

RON 6.3 mln

245

RON 90.0 mln RON 81.5 mln RON 20.5 mln RON 10.4 mln

RON 201.8 mln RON 112.3 mln RON 124.9 mln RON 99.6 mln

RON 2.6 mln RON 1.9 mln RON 12.6 mln RON 14.3 mln

1,706 277 240 218

RON 6.6 mln

RON 86.1 mln

RON 11.9 mln

256

RON 3.7 mln

RON 95 mln

RON 13.9 mln

32

RON 3.5 mln

RON 356.8 mln RON 13.8 mln

612

RON 2 mln

RON 103.4 mln RON 10.3 mln

433

RON 2 mln

RON 109.7 mln 0

121

RON 1.2 mln

RON 88.7 mln

653

RON 894,000

RON 154.9 mln RON 4.9 mln

60

RON 461,990

RON 167.5 mln RON 7.2 mln

23

RON 453,490

RON 135.2 mln RON 3.3 mln

35

RON 237,640 RON 90,610 RON 34,150

RON 86.3 mln RON 1.8 mln RON 120.6 mln RON 3.4 mln RON 133.4 mln (RON 21.6 mln)

8 379 61

RON 5,000

RON 96.4 mln

RON 4.7 mln

29

RON 20

RON 91.1 mln

RON 8.9 mln

18

RON 11

RON 95 mln

RON 2.8 mln

82

Erdemir-Romania LC Waikiki Retail Ro Rompak Sterk Plast Mert Marathon Distribution Group Contec Foods Efes Exports Tecsa Business Redis Market Luco Frucht Marketing Martur Automotive Seating and Interiors Unifrutti Impex Bona Avis Kirazoglu Corporation Karema Fruct Opus Land Development Atlas Copco Romania

Source: National Office for Trade Registry (ONRC)

RON 5.8 mln

www.business-review.eu Business Review | September 2016

22 ADVERTISING

Independent Romanian advertising agencies powering through Which works better on the local advertising industry – the clout of the big international player or the agility of the little guy? Representatives of independent agencies active in Romania told BR why they believe they hold the advantage.

Serban Alexandrescu, Headvertising

Cristina Purcarea, Cap

∫ ROMANITA OPREA

Experience is power

Being an independent marketing agency has never been easy in Romania.

Times were hard during the economic crisis, but even today, in the context of the major groups’ consolidation of power and resources, surviving isn’t easy. Still, Romania is no different than other countries in CEE or the rest of the world, say pundits. There used to be times, indeed, when opening one’s own agency was the normal move after years of experience in a big, multinational company or agency. This is not so common now. The economic situation in recent years has proved to be a good auto-selector of the good from the bad, the talented and creative, strong and determined from the rest of the pack. It has taken a lot for independent agencies to survive and not get “sucked” into big groups or corporations, say players. Remaining independent and financially self-sufficient was a demonstration of a lot of skills, including agency teams’ effort and motivation.

Smart and intuitive companies will always look to hire agencies that offer quality products, in an innovative way, say industry players.

Romania has independent agencies that have passed the ten-year mark and carry on developing campaigns that bring results for their clients. The proof lies in the awards haul, both locally and internationally, as well as in the agencies’ revenues and number of clients. “I know it seemed like a moment that would never be reached, but Romania has managed to resemble mature markets. Look at Cannes Lions: the Romanian winners list this year shows the domination of networks in terms of number of prizes, yet the gold awards went to independent agencies. Next to Cohn & Jansen, we grasped the only two gold awards for Romania in 2016.

However, we should not forget that the bulk of Romania’s presence at Cannes is made up of network agencies,” said Irina Pencea, partner at Jazz, an agency set up in the midst of the economic crisis by three friends with more than 16 years of advertising experience.

“Slowly, Romania has embarked on the same trajectory as Western countries: a trend of consolidation for network agencies which is strongly counteracted by an explosion of independent agencies that make a differ-

ence. The Goliaths are stronger, yet the Davids are many and more agile,” added Pencea.

According to Serban Alexandrescu, creative director & managing partner at Headvertising, an independent agency, assets today consist of honesty and drive for "real world" results, not “unicorn” awards. “A unicorn is nice but you can't eat one, because it doesn't really exist. As an independent agency, you tend not to fritter away resources at the phony award circus – you can't even afford to do this, with today's slim margins. You are the service that you provide. You do not deliver – you find yourself in the gutter. So you're forced to be relevant and (street) smart, and you have a low tolerance for bulls**t and bulls****ers,” said Alexandrescu.

Headvertising, founded by Alexandrescu, Mihai Cocea and Mircea Staiculescu, is one of the long-term agencies, having marked 18 years of activity this year. Another creative agency that stood the test of time and is known on the market for its creativity and outside-the-box approach is Cap, which was founded in 2000. “The independent agencies are most of all faster and more flexible, with fewer procedures and more attentive to the quality of

work they provide, to services and differentiation, because this is what gives them their reputation given that they cannot rely on the equity of an international brand. Sometimes, when you take a closer look at the portfolio, it might even be difficult to spot the differences between a multinational and an independent agency,” argued Cristina Purcarea, managing partner at Cap. “Think Rue du Pain versus Paul, an entrepreneurial business created and managed with personal involvement by its owners versus a multinational.”

According to her, Cap hasn’t changed its strategy throughout the years for clients such as Molson Coors (for the brands Beck’s, Stella Artois, Corona), Regina Maria, Promenada, Toyota and start-ups in Artificial Intelligence and other fields. “I believe that no matter the agency’s claim, the moment of truth is represented by its portfolio. The work and the clients. This is where one can see the way the agency approaches strategy, what its creative power is, what type of clients it can work for, for how long and what results the agency brings the client.

Clients come to us for strategy and creativity, for craft, originality, the ability to stand out in meaningful ways for

www.business-review.eu Business Review | September 2016

their brands,” concluded Purcarea.

Meanwhile, Corina Grigoriu, executive director of Tempo Advertising, an agency that marked 20 years on the market this year, believes that an independent agency should prove at least three essential points of difference in order to be successful. The first point is agility which comes from a higher entrepreneurial spirit to chase and grasp all sorts of opportunities. Secondly is effort – going the extra mile beyond obviously safe ideas, beyond classic solutions. “An independent doesn't risk a whole network’s relationship with a client, therefore we must dare more, and we must experiment beyond boring. Thirdly is local knowledge and international quality of execution – we must prove a superior understanding of the local market, but deliver international standards of execution quality.

Being local doesn't mean being professionally backwards,” said Grigoriu.

Tempo is always looking to better its work and reach excellence, she says.

The agency offers the entrepreneurial experience of problem-solving experts that add a human touch to daring ideas, executed at international standards. In its 20 years, Tempo has gone through big changes, going from a full group of advertising services to a single agency, and from an agency linked with a big international network to an independent agency. “We sold three companies successfully in the process, meaning that we are able to build solid businesses that attract international and entrepreneurial attention and we are able to manage change in a very smooth way, leaving our client roster untouched.

Surprisingly for many, Tempo is still here after 20 years, delivering satisfying advertising products to their clients, making profit continuously,” added the Tempo representative.

The Romanian PR industry also has some old timers. While Image PR has celebrated 20 years, this year in November, Premium Communication will mark 15 years of activity. This milestone is not easy to achieve nowadays, say pundits.

Periodically, Premium agency’s managers say they check whether the pillars of the profession have really changed. When blogs appeared. When online became the most popular resource for information.

When Facebook became the largest communication platform in Romania.

When video content started to gain ground. When the job officially became 24/7. When media channels were divided between owned, earned, paid or borrowed. “And the truth is, the principles of PR have never changed. We still need to be open, honest, brave, brief, polite, respectful towards our clients and partners in the media – be it traditional or social – sensitive, reasonable, empathetic, informed, sharp, quick, to the point. We still need to start meaningful conversations with a company's stakeholders and maintain them, for the benefit of all those involved,” said Sorana Savu, owner of Premium Communication.

ADVERTISING 23 firm wanted to change, to follow a trend or a fad, the business realities or demands of its clients told its representatives that they needed to keep it steady, as their work processes and ethics seemed to work fine. Still, Premium’s representatives are always keeping an eye on what is new, but they don't want to change things for the sake of change or a press release.

International versus local model According to Pencea, for most of the experienced talent in any country, after years and years of playing the international network model game, it no longer makes sense. It’s either impersonal, or oppressive for creativity, or inflexible, or too complicated in terms of politics and career paths. “There is always the option to run away and change your profession, or switch to the client side. I’ve heard of so many trying to build completely opposite businesses, or running into the world as nomads, or doing charity work. Looking for meaning, for the motivation they had years Corina Grigoriu, Tempo Advertising ago, when they started, or simply running away from the imbalance between the huge effort and little reward for their souls, minds or bodies,” said Jazz’s representative.

The latter is Jazz’s case: born from the partners’ determination to demonstrate that they could make it on their own, without the support of a group or investor. “It’s probably ego, or simply the belief that really good work doesn’t need systems around it. We are at the same time aware that this model requires a small scale. We can select people who are like us, but there are few crazy enough to take on the journey, honestly. We need to be small and agile to keep this vibe, our culture. We need to keep doing it for the kick, for the passion for advertising and not only for the bottom line,” added Pencea.

Moreover, when it comes to Jazz, the differentiation on the market is in the ‘how’ more that in the ‘what’. “It’s in our culture, motivation, talent and eagerness. After all, we all use pretty much the same media as everybody else. But we strive so that our message is more empathetic and more surprising than others’. We strive to give our people a culture that nurtures their spirit Sorana Savu, Premium Communication and their motivation, to be a group where various typologies can express themselves, a jam session of talents, Moreover, she points out that PR has social media and digital not as tactical just like jazz. And we do it by being become more complex and more di- tools of engagement, but as strategic as- there every day with them, from nights verse, but its DNA is still the same. sets that contribute to brand building before pitches, to cooking lunch, to Therefore, if one masters the principles, and the corporate profile. When we talk drafting presentations, ideas and proit is easy to ride whatever tide comes about integrated communication we re- posals,” concluded Pencea. your way. “We have extensive expertise ally mean it, not just ‘integrated marIn turn, Grigoriu explains that, at in corporate and financial communica- keting communication’ or mixing PR Tempo, staff members don’t fear the tion – hands on experience in issues and with tools of ATL or BTL. It is a distinc- confrontation of independent vs. multicrisis management and the ability to tive approach which works great with national agency as long as it stays in the strategically manage sophisticated con- companies who truly see communica- arena of ideas and not behind the tent from a variety of ‘heavy’ industries tion as a strategic management func- closed doors of political games. “I have - from metallurgic and construction tion, not just as a promotion tool,” the feeling sometimes that, in advertismaterials to automotive, retail and IT. added Savu. ing, there are even more politics than We are also able to integrate our corpoAccording to representatives’ state- inside Parliament. The big groups have rate and business knowledge with mar- ments, Premium hasn’t changed dur- the sheer force to hammer their big reketing and digital expertise – we see ing its 15 years of activity. Whenever the sources upon you, but we have the

www.business-review.eu Business Review | September 2016

24 ADVERTISING sharpness of a little strategic sting in the right place that can kneel a giant,” commented Grigoriu.

How can an independent agency survive and fight in a market dominated by small group consolidations into large groups?

“It’s that ‘we try harder’ attitude that helps us compensate with the more delicate services’ footprint in place of the supposedly unlimited resources of a corporation. Also, an independent agency carries a stronger mark of its creations that gives it a certain vision. They are the ones writing the manifesto of the organization and are involved in the running of the day-to-day business.

This means differentiation and also a more authentic personalization, a more honest relationship between the clients and the agency,” said Purcarea.

According to Grigoriu, the personalized services of a boutique style agency will never be rivaled by a big multinational group. There are plenty of local clients that the agency wholeheartedly welcomes with personalized services and ideas.

“Consolidations doesn't write ads.

Mergers do not solve briefs. And last time I checked, our industry was still essentially about making effective ads.

We try to somehow keep our culture, the one that saved our ass through the nasty downturn. This is a lot more important than we thought. And a lot

Irina Pencea, Jazz

more difficult to do than we thought.

We try to get or raise the fresh guys that will write the next great campaigns – the ones that the mergers won't write, as I mentioned before,” commented Alexandrescu. Moreover, he considers that advertising is more of a "people business" than is assumed, like the entertainment and movie industry. “The ad guys that are bad at identifying and growing talent are foaming at the

mouth about algorithms and the savior ad software, but an algorithm never had a brand idea. (Though ineptly used algorithms made re-re-re-re-targeted people promptly run for their ad-blockers),” added the Headvertising representative.

Alexandrescu says that his firm focuses on real work, something that is crucial and increasingly rare. “It sounds obvious to throw everything you have

at the really big briefs, but these days most agencies use their best people for unpaid non-commissioned work for festivals, while they put their bored, overworked juniors on the real briefs of the paying clients. I find this absurd, therefore we don't do it. Also, by now it is obvious that film/motion/video is the ultimate communication tool; ‘digital’ will increasingly mean ‘distribution of wow films’. Therefore you will have to be super-good at telling stories through film,” concluded Alexandrescu.

When it comes to PR’s side of the things, Savu has strong doubts about the notion of the “full service” PR agency, as nowadays event management and media buying for special projects tend to account for a sizeable chunk of turnover. Like Alexandrescu, she also believes in people and agencies that specialize in PR, and that, because PR is such a vast field in itself. “It is considered leadership and strategic counsel to the top management, issues and crisis communication, internal and industrial relations, financial and investor relations, digital and marketing communication, custom publishing and so on... It is vast enough to enable you to build a serious career without having to ‘reinvent’ yourself every other year in an attempt to capture other sections of the communication market with which this profession has very little or nothing in common,” said Savu. romanita.oprea@business-review.ro

www.business-review.eu Business Review | September 2016

IT 25

SoftOne Romania manages activities for all its SEE partners In 2015, SoftOne established an international support center in Romania for all its partners in South-East Europe. SoftOne Romania CEO Haris Zachariades tells BR how the company works locally and what its short-term goals are. He believes that Romanian firms still need educating about the benefits of business solutions such as mobile applications, ERP and CRM. At the same time, based on the growing number of small and medium enterprises which have become more open to the adoption of cloud business solutions, we estimate the Romanian cloud ERP market will grow by 15-20 percent in 2016.

∫ OTILIA HARAGA What are SoftOne Romania’s main priorities, as a regional center for CEE expansion?

SoftOne Romania aims to further extend its partner network in 2016 by at least 50 percent, and reach 60 distributors nationwide by the end of the year.

At the same time, this year, the target is to increase our portfolio and reach a total of 300 customers. (…) In 2015, SoftOne established in Romania an international support center for all its partners in South-East Europe. This has diversified the company’s duties to management, marketing and support for all the partners in the region.

Since you entered the Romanian market, what has changed in terms of business climate, legal context and your business expectations?

We entered the local market in 2013 with ambitious plans, knowing that Romania has so much to offer a new company. The business environment here keeps getting better due to improved regulations. Romania’s economic climate is a stable one, which means that we will be able to continue to grow and establish new important partnerships in the near future.

Where has this center expanded so far?

At the end of 2015, SoftOne Romania started coordinating the activities for all its partners in South-East Europe, in terms of marketing, sales and support.

SoftOne currently has a network of 40 partners in Romania and oversees 10 internationally, in Cyprus, Bulgaria, Albania, Russia, Moldova and Serbia. Of course, we are considering expanding even more, but, at the same time, we will focus on further consolidating our position here, in Romania, and on developing a closer relationship with our partners.

How are operations divided among the company’s offices?

Currently, SoftOne Romania has an office in Bucharest from where the company coordinates its entire activity. In our Bucharest office we also periodically organize special training for our partner network, to give them a better understanding of the business solutions we offer our clients. In the near future we plan to increase our partner network in every county, taking into account that Romania has great development potential, a highly trained workforce and good telecommunications infrastructure (internet), especially in regards to the IT&C market.

Soft1 solutions are being used successfully by over 15,000 companies active in several international markets, as well as in many industries such as retail, distribution, construction, transportation, production and services.

How many employees do you currently have for each division in Romania?

Currently, we have 14 employees in our office in Bucharest, professionals with extensive experience in sales, marketing and international support, to develop and provide top quality business software and cloud services. Also, we are confident that the success of our activities here will be built on the strong and trustworthy relationship we develop with our network of partners.

What were the company’s’ financial results last year?

SoftOne Technologies, at an international level, registered a 15 percent in- What are SoftOne’s priorities for the Rocrease in turnover in 2015. Currently, manian market for next year?

The main priority is to further consolidate our role of hub in South-East Europe for our mother company, SoftOne Technologies, as well as increase the number of cloud installations.

Why is it that in Romania there is a lower degree of mobile business solution implementations than in more developed countries?

Romania has a low degree of implementing business solutions in general.

This underlines the fact that there is a major need to educate companies so they understand how they can benefit from using such solutions, whether it’s a mobile app, ERP, CRM etc. Nevertheless, things are improving. Currently, 30 percent of SoftOne Romania’s clients use a mobile business solution and we expect this percentage to grow by 20 percentage points by the end of the year.

What are the three most popular business applications among SoftOne clients in Romania?

The flagship solution for SoftOne is Soft1 ERP – an advanced business solution that provides quick access to information anytime, anywhere and on any device. ERP systems are currently developing fast. The most important factors contributing to this development are cloud technology, mobility and complex reporting systems, which will develop a lot in the following years. (… ) A module that can be provided as a stand-alone application and that is increasingly popular lately is Soft1 CRM, which has incorporated the newest CRM technologies and of course the web & mobile applications, mainly due to our on-cloud edition. Also, we have started to notice increased interest in the electronic invoice solution, eINVOICE, which is a cloud service that enables companies to improve the efficiency of invoice processing. It fully addresses the needs of any enterprise, regardless of its size or industry of involvement. eINVOICE completely simplifies and automates the sending and archiving of invoices by delivering electronic ones to customers. It represents an innovative solution that 100 percent eliminates any printing, archiving, mailing and delivery process. otilia.haraga@business-review.ro

www.business-review.eu Business Review | September 2016

26 ONLINE

Local parents still not aware of risks facing children online With summer in full swing, social media abounds with pictures of happy families on holiday. At the center of many of these photos are the children, whom parents are proud to showcase to their virtual friends. The problem with this behavior is that at the other end of the line may be someone with malicious intent, warn experts canvassed by BR. They say that children face multiple threats online of which parents should be aware. ∫ OTILIA HARAGA With uncensored internet access, children are at risk of cyber-bullying, a phenomenon that includes online harassment, hate messages, death threats and humiliation from their peers, as well as from anonymous sexual predators looking to lure them in the offline world, according to Alexandra Gheorghe, Bitdefender security specialist.

She points out other potential risks posed by online scammers looking to collect children’s private information.

Young internet users may also accidentally download viruses and malware.

While surfing online, they may be exposed to inappropriate content such as pornographic material or sites that advocate anorexia, bulimia or drug use, says Gheorghe.

Unfortunately, parents themselves are not always well up on the risks their children are exposed to every time they go online.

“The desire to share things and moments from their and their children’s lives sometimes leads to embarrassing or dangerous situations. Many parents start to mistake the Facebook photo album for the family album they used to keep at home. As a result, intimate or inappropriate moments are often seen by unknown people when confidentiality settings are not right. At the same time, parents do not realize that there are people using such pictures for other goals or illegal purposes (possible abusers). Therefore, apart from correctly informing their children, parents also need to be correctly informed of confidentiality aspects,” urges Ovidiu Majina, coordinator of The Internet Hour project at Save the Children Romania.

He argues that some parents may even see the internet as a welcome distraction for their children, giving them (the parents) more time.

“When talking about parents’ internet education, we must also take into account the country’s social, economic and cultural context. A lack of time and information often causes

Current situation: 65 percent of parents say that their children have their own account on a social networking site

lack of interest in children’s activities on the internet, which they consider a ‘baby-sitter’ to which they can resort to get some peace and quiet,” says Majina.

This frequent and potentially dangerous carefree attitude is confirmed by security experts. “Romanian parents seem to have a much too relaxed stance on their children’s internet usage,” warns Stefan Tanase, senior security researcher, EEMEA, global research & analysis team, Kaspersky Lab. He quotes a survey carried out by Save the Children, which found that 68 percent of parents allow their chil-

dren unlimited access to instant messaging apps, 57 percent let them download music or movies and 65 percent allow them to watch videos online. As for social media, 65 percent of parents say that their children have their own account on a social networking site. Furthermore, only half of parents check their children’s friends list, the public information on their accounts and their browsing history, according to the Save the Children survey.

The most serious threat that parents expose their children to when they post pictures with them online is

that private information about their children may end up in the hands of dangerous people – child molesters or other criminals. The risk is even greater if parents have on their social networks’ friends list individuals that they do not know in real life, argues Tanase.

“Unfortunately, the numbers that we are witnessing are alarming. More and more children are being shown off by their parents online, sometimes even before they are born. This year, during a cyber-security conference in San Francisco, Stephen Balkam, who founded an institute for online safety

www.business-review.eu Business Review | September 2016

targeted at families, was saying that 46 percent of millennial parents had posted a picture of their child before the child even turned one year old.

More so, some parents actually posted an ultrasound of their baby. The average parent will post almost 1,000 photos of their child online before he/she turns five, according to another recent survey of 2,000 parents by The Parent Zone, a UK-based site devoted to internet safety and parenting in the digital age,” says Tanase.

In Romania, no statistics has been put together on how many parents post pictures of their children on the internet. But, according to Tanase, one needs only browse a few of the parenting forums, blogs and Facebook groups in order to have an idea.

“While it is difficult to gauge the exact numbers, the trend of online bragging about one’s children is definitely on the rise,” says Tanase.

“Unfortunately, most parents don’t ask children’s permission before posting pictures with them (partially because kids are too young to understand the implications) and some have never adjusted their Facebook or Twitter privacy settings to limit who sees their kids. This attracts criticism from privacy advocates who say the best course of action is to keep children’s photos off the internet altogether,” says Gheorghe from Bitdefender.

Data obtained by Save the Children from the counseling line Ctrl_Ajutor developed as part of the Ora de Net project show that cyber-bullying is the most widespread problem for children, followed by cases regarding confidentiality settings and personal data. “(… ) One in four children has fallen victim to cyber-bullying while one in three has seen sexually-related images (Save the Children survey 2015),” says Majina.

Psychologist Alexandru Plesea tells BR that approximately 85-90 percent of 12- to 18-year-olds have internet access, and most of them – especially children between 14 and 16 – look for sexual images. “After the first year of unrestricted consumption of online sexual images, most children who lack adult supervision will gain access to drugs, and go through emotional imbalances and hooliganism behavior.

The risks can involve improper sexual conduct, rapes, molestation, sexual deviancy or violent acts. Children imitate what they see, hear and read.

During this time, sexual information ‘imprints’ on their brain and repeated exposure leads to deviant sexual behavior as an adult,” warns Plesea.

How parents can take action Fortunately, there are solutions at hand for parents who want to take action and protect their children from the unwanted effects of the internet.

Parents’ strategy to control the risks of their children’s online behavior can comprise several pillars.

Tanase points out that the majority

ONLINE 27 of the most commonly used search engines have a SafeSearch option, and this is the first key issue to which parents should pay attention. “Enabling the SafeSearch option filters out websites containing questionable content from search results,” Tanase explains.

Another step that parents can take to better control their children’s online activity is to use specialized software, also called “parental control”. “This software is usually capable of controlling the amount of time a child spends online or using the computer, which apps can be launched and what personal data can be disclosed. It also allows parents to set a safe area and receive alerts whenever the child leaves that area. One of the most important features of a parental control product, however, is the ability to restrict access to web resources containing undesirable content,” says Tanase.

Another pillar of a good action plan for protecting children online is education. “Children’s education should have at the forefront their personal and professional development. The risks must be inserted rather as principles of responsibility and positive behavior, so that the child acquires a norm that brings a benefit (“I will not publish this picture because I will regret it later/It doesn’t fit my personality”),” Majina tells BR. However, at the core of children’s good online education stands good communication between parents and children. “The internet is not a childfriendly place. Social media can be a hub for things such as cyber-bullying, malware, scams and questionable activities. Two-way communication is very important as children may not always give parents the full picture about what is going on and they might end up in dangerous situations,” says Gheorghe of Bitdefender.

Parents also need to actively inform children of the risks they face every time they go online.

“It’s best to start discussing online safety with kids at an early age, when they start discovering the internet.

Walk them through the basics: what is the internet? Why are there bad guys and who are they? How do they protect themselves? How to set strong passwords? Teach them about the implications of posting private information about themselves. Selfies are fun, but oversharing poses a threat to privacy,” Gheorghe points out.

“Let’s face it: Facebook is like a scrapbook for stalkers and thieves.

From the music they listen to, to where they are ‘checking in’ in the real world, these tidbits of information can help stalkers learn children’s daily schedules and where to find them.

Lastly, advise them to have the same responsible, considerate behavior on the internet as if they were talking to someone face to face, in the real world.

Etiquette is as important online as it is offline,” she concludes. otilia.haraga@business-review.ro

www.business-review.eu Business Review | September 2016

28 HEALTHCARE

Health minister: ‘The healthcare sector is given the priority the country needs’ The RON 570 million that the Romanian public sector received in the recent budget correction shows that healthcare is now receiving the necessary priority, according to health minister Vlad Voiculescu. He said the main investment areas will be staff, programs, efficiency and investments.

The minister added that these funds will mainly target four areas: human resources, programs, efficiency and investments.

The first item on the list was a hike in doctors’ salaries, effective as of August 1, via Ordinance 20. “A second thing recently agreed upon is higher pay for doctors’ supplementary night shifts, by using as a benchmark the basic salary which was raised on August 1,” announced the minister. ∫ OTILIA HARAGA There will also be more flexibility in the way night shifts are handled and doc“The health sector is finally receiving the tors’ working hours in general. priority that it needs, that the country Turning to the programs in focus, the needs. The figures are relatively simple: health minister flagged up the national we are talking about RON 570 million, a program for the surveillance and consupplementary allocation as part of the trol of hospital-acquired infections and budget correction, of which RON 297 monitoring the use of antibiotics and remillion is for the Health Ministry, and sistance to them.

“The program’s budget was suppleRON 271 million for the National Health Insurance House,” said Voiculescu, mented by RON 4.6 million, active testing was introduced for all new patients quoted by Agerpres newswire.

hospitalized in the ICU. (…) The number of hospitals where this new measure will be implemented is 72, these being hospitals that include a microbiology lab. We have expanded the national network of sentinel units from 12 to 23.

These are units which monitor hospitalacquired infections, such as septicemia, pneumonia, urinary infections, infections following the use of medical devices, and surgical sinus infections in high-risk departments such as ICU and surgery. We also have a budget for people who will benefit from training for the control of nosocomial infections and the cautious use of antibiotics across 114 medical units,” said Voiculescu, quoted by Agerpres.

The local consumption of antibiotics is 70 percent higher than the European average, and this reality must be directly correlated with nosocomial infections, he added.

The health minister also spoke about

the loans to the National Health Insurance House, which stand at RON 868 million.

He talked about what investments he plans to make in the healthcare sector. “Right now, I would like to mention the neonatology service and emergency units. In neonatology, we have completed the necessary investigation at national level for newborn ventilators, incubators, monitors and perfusion pumps. There will be centralized public acquisitions as soon as we have the market studies. There are more maternity wards in progress. (…) Also, from the budget correction we have RON 15 million that will be given on top for investments in renovating buildings of the ambulance county services and emergency units. As far as the investments go, we want to stop making them randomly,” said Voiculescu. otilia.haraga@business-review.ro

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HEALTHCARE 29

Half of parents ‘treat children’s fever and pain with unsuitable drugs for their age’ Half of Romanian parents treat the fever and pain of children aged 7-12 with drugs that are unsuitable for their age, according to a survey published by the National Society of Family Doctors.

∫ OTILIA HARAGA For 22 percent of Romanian parents, the greatest fear about their children’s wellbeing is that they might contract a

disease that would jeopardize their treatment more readily if it tastes nice, heath, followed by fears about the and 15 percent if it is easy to swallow.

The most frequent health problems child’s safety and then financial stability, according to the survey, carried out by for children between 7 and 12 are cold Ivox on behalf of the National Society of and flu, according to the survey.

The main fears of parents whose Family Doctors, quoted by Agerpres child is suffering from a respiratory innewswire.

Respiratory infections are the most fection are episodes of fever (in 52 percommon conditions for children be- cent of cases) and the risk of tween 7 and 12 years old. Some 88 per- complications, such as pneumonia (44 cent of children in this age band get a percent).

Seven out of ten parents take the cold every year, and more than 38 percent as often as three times a year, ac- child for a checkup at the family doctor or pediatrician in the event of illness, cording to the survey.

Treatments for cold, flu and pain according to the survey, quoted by place half of the parents of children Agerpres newswire.

Nearly one fifth of parents give their above seven in difficulty, because there are no analgesic or antipyretic options children drugs that have already been aimed this age category. Two out of ten “tested” and have worked on other occaparents are therefore forced to give chil- sions. Only one in ten parents tries to let dren treatment suitable for a younger the child overcome the disease without drugs, preferring to give treatment only age band.

Children’s tolerance to drug admin- if the child gets worse, according to the istration also causes parents problems: survey.

When it comes to treatment, most 30 percent of children up to 7 accept the

parents (94 percent) choose drugs only at the recommendation of a doctor or pharmacist, and 10 percent also want the drug to be a trusted brand.

Disease has a significant impact on the wellbeing and behavior of children.

More than half of kids (55 percent) lack the energy and appetite for play when they are ill, while 32 percent suffer from a general malaise which does not allow them to carry out their usual activity.

Apart from giving them drugs to counteract the fever and pain, parents try to help their children heal by spending more time with them (in 58 percent of cases), preparing their favorite meal (32 percent) and encouraging them to rest more when they are ill (39 percent), according to the survey, quoted by Agerpres newswire.

The research was carried out over July 11-18 on 471 parents with children aged between 7 and 12. otilia.haraga@business-review.ro

www.business-review.eu Business Review | September 2016

30 TELECOM

Telecom watchdog adopts 2020 Strategy for Digital Communications The Romanian telecom watchdog ANCOM last month adopted the ANCOM 2020 Strategy for Digital Communications, which comprises a review of the current state of the local telecom sector as well as the trends based on which the institution has outlined its action plan for managing and regulating the telecom market over the next five years.

paradigm, especially where the quality of services is concerned. To guarantee the neutrality of the networks According to the ANCOM strategy, be- and apply the principles of the regulatween 2016 and 2020, the telecom tions regarding open internet, watchdog will focus on maximizing ANCOM’s efforts will see significant benefits for telecom users in Romania, development in network performance, especially through promoting compe- the quality parameters of services, tition between various telecom net- evaluation indicators and the methods and frequency of measurements. works and service tariffs.

“Over the next five years, we will At the same time, user protection will promote more than ever technological be one of the goals on the agenda, and innovation and performance at the will be achieved by transposing the level of the communication infra- new stipulations into service contracts.

The ANCOM strategy outlines sevstructure in Romania. More efficient networks, with superior technical per- eral action areas, including some formance, tend to incorporate innova- measures with a direct impact on teletion faster, can compete better and com users in Romania. The authority allow [players] to provide more com- plans to build up interactive maps that petitive services over more extended show how the Romanian territory is geographical areas,” said Catalin Mari- covered with communication networks, so that telecom users are better nescu, president of ANCOM. According to the report, the neu- informed. ANCOM’s interactive maps trality of the networks and open inter- will allow players to post relevant denet represent paramount conditions tails for users, such as data transfer for nurturing innovation and are the speeds, available technologies, as well best tools for supporting innovating as the quality of coverage (basic, good services, including in the online envi- or very good), according to officials.

ANCOM is also considering the inronment. This involves a change in

∫ OTILIA HARAGA

troduction of a trial period in mobile services contracts (which will exclude equipment provision), in order to make it easier for users to change their provider and stimulate demand for services.

The telecom watchdog will analyze whether the introduction of broadband access services into the universal service can support the targets of the Digital Agenda for Romania, in a way that will trigger the expansion of fixed broadband networks into impoverished areas, and also maximize population coverage by 2020.

According to the strategy published by ANCOM, convergent fixedmobile communication packages will become mass products by 2020. Romanian users will have at their disposal more and more services and applications to choose from, anytime and anywhere, whether they are at home, at work, on holiday, staying in one place or moving around, and on any equipment, whether it is a desktop computer, laptop, tablet or phone.

At the same time, Wi-Fi will be used regularly for connecting online multiple handsets across most households in Romania.

As services are moving online, the borders between traditional electronic communications and online services (applications) will become more blurry.

Users will be more and more engaged in simultaneous communication through a wide range of equipment and applications, so that services such as video-telephony on TV or tablet will replace traditional voice calls between family members and friends, and tele-conferences on the laptop will replace much business travel.

The ANCOM strategic review was adopted following a public consultation carried out in May and June. It follows the adoption of important national and European strategies and policies. The ANCOM strategy comes after the EU regulation on open internet and eliminating roaming in Europe came into force, adopted in parallel with debates regarding the overhaul of the European communication regulation framework, and transposing in Romania the measures to reduce broadband internet costs.

A series of legal measures were adopted to regulate access to infra-

structure in Romania. According to ANCOM, Law nr. 154/2012 has introduced more transparency and objectivity in the field, outlining the conditions in which network providers have access to public or private property for the installation, maintenance, replacement and moving of the networks or related infrastructure elements, by stimulating shared use of networks, as well as introducing measures for authorizing constructions and making an inventory map of networks.

The recent adoption of Law 159/2016 is expected to significantly improve the conditions for expanding broadband networks, through a series of well-planned specific measures, such as increasing the attractiveness of the use of existing fixed infrastructure, reducing red tape in issuing authorizations, the transparency of plans and the coordination of civil construction works, according to the report.

On the short term, ANCOM concluded that demand for spectrum for mobile-fixed communications can be considered fulfilled, after the public tenders in 2012 and 2015. However, on the medium term, the watchdog intends to allocate new UHF spectrum resources for mobile communications in the 700 MHz bandwidth.

Also, the authority may allocate other frequencies for mobile communications, like for instance 1.5 GHz (ranging from 1,452–1,492 MHz). In conclusion, on the medium term, there is interest in allocating spectrum in the 700 MHz and 1,500 MHz, with integrated use in the EU. Although it has the highest performing fixed networks in Europe, Romania continues to register the lowest internet use in the EU, according to ANCOM. At the end of 2015, the penetration of broadband internet had barely reached 51.8 percent of Romanian households (21.4 percent of the population), and the penetration growth rate has been constantly cooling since 2012. That is why one of ANCOM’s priorities is to stimulate competition at the level of services, not just infrastructure, so that consumption is boosted by cutting prices and improving economic indicators. otilia.haraga@business-review.ro

32 GEORGE ENESCU COMPETITION

www.business-review.eu Business Review | September 2016

Photo: Catalina Filip

Photo: Xxxx

Tomorrow’s maestros warm up for George Enescu Competition

Each September brings to Bucharest the magic of national composer George Enescu, this year through the contest for young musicians setting out on their path to greatness. Some 174 were chosen to participate in this year’s George Enescu International Competition (biennial since 2014), the only Romanian classical music competition with international recognition, which will be held in the Athenaeum in Bucharest from September 3-25. BR went behind the scenes of the competition to talk to some of its glittering musicians about its meaning.

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GEORGE ENESCU COMPETITION 33

∫ OANA VASILIU

A total of 317 artists will take part in the competition, 40 percent more than in 2014. The selected performers come from 48 countries, including South Korea, Italy, Spain, France, Croatia and Russia. Romania will be represented by 12 artists. The names of the selected musicians can be found online at www.festivalenescu.ro , listed under violin, cello and piano. All the projects submitted for the composition section have been sent for judging and the winner will be announced on September 3, during the festival opening.

Among the jury members are violinists Pierre Amoyal and Silvia Marcovici, cellists Natalia Gutman, David Geringas and Arto Noras and pianists Peter Donohoe, Dana Borsan and Andrei Sitarev.

The total value of the prizes at the 2016 Enescu Competition is EUR 115,000. Two special prizes are also awarded: a two-year scholarship to the famous Barenboim Academy of Berlin, for the best ranking Romanian competitor in the violin section, and presence as a guest artist on the stage of the iPalpiti Festival of International Laureates 2017 in Los Angeles, for the best violinist.

Enescu himself organized numerous fund-raising events to support young artists and, in 1913, founded a national

Photo: Andrei Gindac

Tuning up for competition: the performers, prizes and judges

award for the best composition, which was held annually until 1946. He also gave musicians the chance to have their compositions performed.

Stage presence: the concerts Top musicians, jury members and former George Enescu International Competition winners will also hold concerts during the event, in a series of 19 performances and orchestra concerts.

In premiere, three artists and forthcoming jury members will hold recitals at the Romanian Atheneum on September 7, 16 and 22.

On September 7, cellist Geringas will hold a recital with Ian Fountain on the piano. Geringas is of Lithuanian origin

and has had concerts with big orchestras, such as the Royal Concertgebouw, London Symphony and Vienna Philharmonic, also in the role of conductor. He won the golden medal at the International Tchaikovsky Competition.

Violinist Florin Croitoru will be on the stage on September 16, with Verona Maier on the piano. An attendee of several successive Enescu contests, he is also a professor at the Conservatory of Bucharest and taught for a while in the US. English pianist Donohoe will hold a recital on September 22. Donohoe started out recording works by the composers Franz Liszt, Piotr Ilici Tchaikovsky, Frédéric Chopin, Jo-

hannes Brahms and Ludwig van Beethoven. From 1988 till 1993, he recorded exclusively for EMI Records.

Along with established artists, audiences can also discover the winners of the 2014 Enescu Competition, now making a name for themselves on the international classical music scene. A violin wunderkind, Stefan Tarara, born to Romanian parents in Munich, will perform at the Athenaeum on September 18, at 7:00pm, with pianist Lora Evelin Vakova-Tarara, designated the best accompanist of Enescu’s Sonata No. 3 at the 2014 competition. Meanwhile, the winner of the cello section, Eun Sun Hong, will give an extraordinary recital on September 10. Spaniard Josu de Solaun – who during the 2014 competition lived in a rented apartment on George Enescu Street which was right under that occupied by Enescu himself in the late 30s and early 40s, before he moved for good to the back chambers of the Cantacuzino Palace – will take to the Athenaeum stage on September 24, at 7:00pm.

Hot tickets: book your seat The tickets for the Opening Concert (September 3) and the Piano Finale of the 2016 Enescu Concert (September 25) are sold out. Tickets can be bought for other recitals, as well as for the violin and cello final galas, costing between RON 40 and RON 50. oana.vasiliu@business-review.ro

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34 GEORGE ENESCU COMPETITION

Pitching in: local artists on the George Enescu International Competition What does the George Enescu Competition mean to you?

The competition, which I won in 1999, was a very important moment in my competitive career. The event is undoubtedly the most important of its kind in Romania, being integrated for many years now in the top international competitions network. The prize was a confirmation of my position at the time as well as a personal challenge – to show that I could do much more than that.

Conductor Horia Andreescu Founder of the Virtuosi Chamber Orchestra of Bucharest, associate professor of the National University of Music Bucharest, chief conductor of the George Enescu Philharmonic in Bucharest

pated. In my capacity as a conductor, and especially knowing that Enescu was an excellent conductor who led orchestras in Paris, New York and Philadelphia, I think it would be in the spirit of this great musician and also service Romanian culture to introduce a session dedicated to conducting at this contest.

What does the George Enescu Competition mean to you?

The fact that Romanian officials have held the George Enescu International Competition since 1958 gives me a complex of emotions, from surprise to delight, especially knowing that huge musical personalities have partici-

What does it mean to a young musician?

Each artist – in all fields of art – wants to be known for his/her achievements. In the musical world, the best way is to participate and succeed in a prestigious international competition. This is how a young musician’s participation in this competition should be seen. As an ex-

Photo: Felix Broede

What does the competition mean to a young musician?

I think that young people who are just

Cellist Valentin Radutiu Winner of second prize at the George Enescu Cello Contest in 2011 What does the George Enescu contest mean to you?

Do you think the format, organization and promotion of this competition are

what Enescu would have wanted?

It’s hard to believe that George Enescu could have anticipated a Facebook page or satellite television!

But I'm sure he would have been very excited to see what is happening here.

Moreover, Enescu was concerned with young talents while he was alive.

He instituted a scholarship for young composers which he paid for out of his own pocket. There are still many other examples of his generosity. Perhaps due to his renowned modesty, Enescu would have proposed another name for the competition, but I think the current choice is better nowadays.

ample of what success has meant in this contest, after the first edition in 1958, the brilliant violinist Stefan Ruha started a successful career with many worldwide concerts. Something similar happened to Elisabeth Leonskaja, Ileana Cotrubas and Radu Lupu.

Are the format, organization and promotion what Enescu would have wanted?

George Enescu understood from the beginning the importance of musical competitions. The proof is that in 1913, he initiated the National Composition Contest, which he also supported financially until 1946 when he left Romania.

If I were to comment on the format, organization and promotion, I believe that

A young musician needs a goal and The Enescu Competition and my award must learn to be under certain presgave me many chances, beneficial possures: one is to prepare a repertoire by a sibilities, beautiful memories and percertain date, to perform in front of an spectives. Mentioning this award on audience and a jury and to compare one’s CV means much more exposure him- or herself and be compared with than just someone who won something the competition. Even if this exposure in a competitive way. With this award, I has unpleasant moments, obviously developed and connected with many musical, professional and personal asstressful, you should enjoy the chance it provides because the effort is only for pects of my life. Of course my father – you as a musician. I always tell young also a cellist and my first teacher – who musicians, laughing, that when they studied in Bucharest, contributed to my lack enthusiasm for study before a comparticipation in the competition with a petition, “You are not digging for somespecial significance. In the finals, my faone else!” If this investment in yourself ther saw me in the same room in which and your evolution means the Enescu he took his soloist exam, performing contest, the training process for your the same work that he had played 40 years earlier: the Dvorak concert. Also, “top form” should be a huge one. This contest offers all the conditions in terms the competition made me engage more deeply with George Enescu's music, of organization, the judging panel of international personalities, prizes and opwhich will always have a hugely imporportunities offered to the winners and tant role in my life, not just my life as a it is located in a fascinating capital city cellist. with a long musical tradition and a music loving public. What else is there What does it mean to a young musician?

Photo: Eugen Oprina

Violinist Alexandru Tomescu Winner of George Enescu Violin Competition in 1999

getting started can find in this competition exactly what they need: firstly, concerts and invitations to festivals for the winners; in other words a true springboard for their career.

Then, the friendly environment in which the competition takes place is very important because it facilitates communication between participants and gaining experience. The fact that all candidates interpret works by George Enescu with the best performance being rewarded with a special prize is a plus.

Enescu could only enjoy it, because this competition celebrates not only the violinist, pianist and teacher George Enescu, but also the composer George Enescu.

to wish for?!

Are the format, organization and promotion what Enescu would have wanted?

I do not think George Enescu was very interested in worldly things – meaning materialistic success or fame. We find in his interviews and his composed music a permanent search, reflecting the question: how to live life? Though a genius of his time, as composer, performer and conductor, Enescu knew what work, study and competition meant for his job. I am convinced that this competition would be appreciated by Enescu for the extraordinary way to discover and support young talents, as well as the efforts to open the gates to the international scene. A great joy for Enescu, I think, would be to hear in the finals a young violinist singing with soul and artistry and a greater joy if this contest bears his name.

www.business-review.eu Business Review | September 2016

GEORGE ENESCU COMPETITION 35

Photo: Virgil Oprina

beginning as a complementary platform of the festival to promote George Enescu's creations, especially among young people everywhere, who are insufficiently familiar with our great musical composer. Continuing with the idea, I think no organizational or financial effort in this direction can be considered irrelevant, while Romanian music, as a whole, is still ignored and marginalized in the world. In this context, the work of George Enescu can have the role of a true ''Trojan horse‘'.

Conductor Cristian Mandeal Former director of the George Enescu Philharmonic in Bucharest, conductor of the Romanian Youth Orchestra, former artistic director of George Enescu International Festival and George Enescu International Competition (2001, 2003)

What does it mean to a young musician?

For any young performer, to participate, and possibly win an international competition is a significant step. The peculiarity of this competition is the chance offered to meet, assimilate, love and finally become able to convincingly interpret music which is considered unique, thus enriching young musicians’ repertoire so they can become more established on the international scene.

What does the competition mean to you?

This contest was designed from the

Are the format, organization and promotion what Enescu would have wanted?

Violinist Remus Azoitei Winner of second prize at the George Enescu Violin Contest in 1999, professor at the Royal Academy of Music in London

that will remain close to my heart. I feel honored and, moreover, this award has contributed to an even deeper fusion between what I am now – a violinist and a violin professor at the Royal Academy of Music – and my deep Romanian roots.

What does the contest mean to you?

And to a young musician?

For any musician who grew up in Romania, the Enescu competition represents the peak level reached by a young instrumentalist. It is a dream for any Romanian musician, a dream that can come true if you work hard and you are determined. It is a symbol, but also an incentive for anyone to build something, to work until their efforts are rewarded. I’m one of the winners of this contest, with a prize

Are the format, organization and promotion what Enescu would have wanted?

I’m not convinced that Enescu would have been very interested in the existence of a contest that bears his name, at least in terms of his famed modesty.

Moreover, Enescu was an artist whose way of making music was sincere, from the heart – often he said he was not interested in the perfect interpretation, that this did not move him at all.

Enescu was interested in what is transmitted by the power of music to move

Composer Sebastian Andone Winner at George Enescu Composition Contest in 2014What does the contest mean to you?

Most of us, young musicians, grew up occasionally hearing Bartok's famous statement: "Competitions are for

horses, not artists." Despite this first impression, I dare to think Bartok wanted to emphasize the danger of mistaking temporary recognition (like winning a competition) for any of the higher artistic aspirations. His statement reveals total faith in the power of the authentic artistic act, which will surface through intrinsic forces without the need for a competition. Understood as such, I agree with Bartok's statement. But I’m living in a world of over 7 billion people, of whom who knows how many are composers? Does this faith in the intrinsic artistic act empower me, the author of it? Does not this faith work also through me? Do I not owe to my own music to be the first and most ardent promoter of it without violating those principles that define and elevate the artist? Unfortunately, until now, no score came out of the drawer by itself or

The format of international music interpretation competitions is more or less similar throughout the world, with very few exceptions. This contest is no exception. The obligatory inclusion of works by George Enescu confers both a touch of individuality and the event’s very reason for being.

Regarding the effectiveness of its promotion, this is questionable. The interest that a competition generates among young artists is often contingent on what it offers. Besides substantial prizes, sometimes the opportunities for international affirmation granted to the competition’s winner are more attractive. Personally, I think in this area there is a minus as the young winner doesn’t really get a significant, international gate for his/her promotion opened up, rather badly paid and sometimes participation prizes without any major artistic value.

I do not know precisely what Enescu wanted for this contest in the above respects. But, what I strongly believe is that from an artistic perspective, he would have rejected any kind of alignment with the predominant contemporary competitions which pro-

mote candidates who usually stand out for their impressive, infallible technical performance.

This type of winner has unfortunately become a series of prototypes, following a recipe that fills the art market with hundreds of products which soon become uninteresting, being replaced at an increasingly fast pace by other such players. I think Enescu would have appreciated a contest in which performance criteria were primarily the candidate’s talent, his/her creative ability, imagination, personality, lack of prejudice, and wealth of ideas free from the effects of rather sterile schools or traditions.

Few contests today follow this direction, few juries are made up of great personalities and have the courage to overcome contemporary standardization. Cases like that of Andrei Ionita, who premiered at the Moscow contest, remain isolated. I strongly believe that the future of the George Enescu Competition lies in its ability to detach itself from automated procedures and the demands of homogenous consumer markets and in the courage to assert higher values.

someone in order to achieve their emotional goal. I do not think he would have promoted a competition of "technical perfection," which most often decides a contest prize-winner, on such a scale.

As we know, the winners of these competitions have reached an incredible technical instrumental level, but they are young artists who, only after winning contests, will fully mature artistically.

From our point of view, however, as Enescu's followers, the contest is absolutely necessary. It's a great way to promote his name and his works to the competitors, to present to the world the incredible music of this great composer.

It is our duty to glorify musicians through the best means possible, to present Enescu to young artists every-

where, which in turn will take his art further. The competition is an international event, very well promoted – and Enescu has everything to gain from it. His music played by young artists will be carried on, thus establishing a kind of "legacy" for future generations as well.

was placed on the desk of any conductor, especially during the composer's life.

This is one of the meanings of George Enescu’s competition for me: one of the opportunities for a young composer to hear his or her music, which is not written for the competition itself, nor for recognition or success and not even to hear one’s own music performed by the Philharmonic, but rather out of passion and an ontological necessity.

What does it mean to a young musician?

There are giant performers, conductors and composers who did not participate in competitions, but there are also those who have done so, just as famous as the other ones. So it is not necessary to participate in competitions, but there is no harm, as we see. The contest is prima-

rily a means of imposing (self)mobilization and raising one’s standards and propensity for (self-)knowledge.

You can stay home with your art, never knowing if it would survive time. However, even recognition of your art by winning a contest does not ensure its survival/consecration.

Are the format, organization and promotion what Enescu would have wanted?

I think all great composers would want good music to be disseminated, especially in their home country.

However, I am unable to answer this question further. I can only add that I have met many young composers from around the globe who regard this contest with great respect and reverence, giving them confidence and thus confirming its reputation.

www.business-review.eu Business Review | September 2016

36 FILM FESTIVAL

Meet and greet the An onimul public watching movie s at 12 degrees

tival-goers are Every evening, fes rise guest by the treated to a surp organizers

A chill-out zone near the Danube

iu talking about Director Cristi Pu latest movie, s hi , Sieranevada with the public

For some high-end R&R, the resort offers a pool among other facilities

ramen Asaftei/ Starop Photo: Dragos

Photo: Dhope Design/ Green Village

An in-tents experience: camping is popular at Anonimul

na great compa A book can be t gh ni e th ting for ion while wai g in movie screen

Find your ow n spot for th view of the e best film

Festival Photo: Anonimul Film

Photo: Drag os Asaftei/ St aropramen

an director Park Well-known Kore to Anonimul d lke ta Chan-wook s hi movies attendees about

Photo: Dhope Design/ Gree n Village

ea/ Format Studio Photo: Andra Mir

n Village Photo: Ionut Dobre/ Gree

awaits its The open-air cinema ers film-go

Photo: Ionut Dobre/ Green Village

ftei/ Staropramen Photo: Dragos Asa

ftei/ Staropramen Photo: Dragos Asa

You know you’ve arrived in Sfantu Gheorghe village when your boat docks

Photo: Dhope Design/ Gree n Village

Photo: Ionut Dobre/ Green Village

Glimpses of a film festival from the Danube Delta’s corner of the world

phy went to The Anonimul 2016 Tro ed, directed ten igh The Land of the Enl ed in the ard aw , Pue De Jan terby Pie beke Ver e goir Gre AD presence of the

www.business-review.eu Business Review | September 2016

EXPAT EyE 37

No brexit brit-bashing from hospitable Romanians The local response to Brexit, the Sky scandal and Romania’s growing self-confidence come under the lens in BR’s regular look at life in Bucharest and Romania from an outsider’s viewpoint.

∫ DEbbIE STOWE This month I was put in touch with a journalist writing a piece about UK ex-

pats living in Romania since the EU ref- Low point for Sky? erendum. One of her questions was One local silver lining to the Brexit whether there was any anti-British sen- cloud is that Romanians can clearly see timent now. that their country has no monopoly on It would be understandable. For Ro- stupidity and dishonesty. manians, many of whom worked and A colleague of mine, noting that the yearned for cherished EU membership “Brexit advocates fled like rats from a status for so long, to see the same thing sinking ship” after unexpectedly windismissed in an implicit rejection of ning the vote, told me, “You know, I their compatriots trying to better their thought that Romanian politicians are lives in Britain, is surely sad and hurtful. the worst, but now, I am starting to see Young people who had thought of that other countries have unscrupulous studying or working in the UK have had people like that too.” those hopes if not shredded, at least They also have unscrupulous jourput in doubt. nalists. A row is currently ongoing beThe disgusting arson attack on a Ro- tween Sky News, which claims its manian shop in Norwich, amid a stom- reporter met illegal arms dealers in the ach-churning uptick in racism and Romanian countryside, and local repxenophobia since June 23, would be resentatives who say the “dealers” further reason for people here to resent were actors faking it for a fee, and that the British, and make such views the filmed assignation was scripted. known to UK citizens living in their Sky (owned by Brexit-favoring tyown country. coon Rupert Murdoch) is standing by Not a bit of it. The only reaction I’ve the story, and the furor is still playing had since the calamitous outcome of out. the vote has been sympathy. Further But something that struck me – as evidence of how hospitable Romanians the Sky reporter condemned the ensuare, whether you’re in their living room ing “trolling” – is that Romanians seem or just in their country. much more willing to stand up for

themselves these days, compared to when I arrived in the early 2000s.

Back then, many people seemed cowed by those with power and influence, whether it was their boss, bigwigs or the authorities. It made sense – whereas in the UK many people see the authorities as largely benign, why wouldn’t you fear people in power here, with the authoritarian regime a lingering and potent memory?

But today’s Romanians seem much more inclined to fight for their rights – whether it’s marching to force resignations or support environmental causes, or taking the high-profile to task when they slate Romania unfairly.

Social media play a big role in this.

Romanians are famously tech-savvy, and flock online to protest injustices against their country, as John McCain and Bernie Sanders both found out in recent months after disparaging comments.

It’s good to see Romania – which offers so much that so little is known about – flexing some self-confidence.

another run-out for the somber spy, set ten years after the conclusion of The Bourne Ultimatum, could add to the narrative?

The answer is: not much. There’s a new plot strand involving one of Jason’s family members, but it feels extraneous after The Bourne Ultimatum’s neat resolution. And the usual stuff about “bringing Bourne in” feels tired – if we, the popcorn-munching masses, can see that he’s never going to be willingly “brought in”, why can’t the US government’s sharpest minds?

Still, plot is of secondary importance in spy films, necessary mainly as a platform for the fun stunts and set pieces. And these, as throughout the Bourne trilogy, are top-notch.

There’s the big, Balkan, chaotic dash where the good guys are pursued by the “asset”. There’s the London public place set piece where Bourne has to guide a hapless civilian away from agency snipers (in which the civilian is always fine – until he stupidly stops doing what Jason says).

And there’s the dramatic car chase, which is well executed, although the setting here veers a little too close to James Bond territory.

Helmsman Paul Greengrass (who directed Matt Damon in two of his previous three outings) has been careful to give the fans what they want – too careful perhaps. The movie feels like

Bourne-by-numbers, a reworking of old hits without the previous narrative drive.

Still, even a subpar Matt Damon Bourne film is far superior to most of the thrillers that find their way into multiplexes these days, and there’s a lot to enjoy.

We see the return of some old characters (from among the few who weren’t killed off) and some intriguing new ones, notably CIA cyber whizz-kid Heather Lee (Alicia Vikander), who’s annoying her superiors at the agency, notably old-schooler Robert Dewey (Tommy Lee Jones), with her newfangled ideas. Uber-Frenchman Vincent Cassel also pops up as a shady “asset”.

Although this latest franchise entry didn’t really need to be made, audiences don’t go to Bourne movies (or spy films in general) expecting much plausibility, so it’s not like Greengrass and Damon have sacrificed any artistic integrity.

This is the least memorable of the four Damon outings. It lacks the punchy twists and payoffs of its forebears, but ends on a nice Bourne-y note, with the hint of a continuation of the series. And Greengrass and Damon would need to have far worse weakest links than this watchable thriller before that becomes an unexciting prospect.

debbie.stowe@business-review.ro

FILM REVIEW

Jason bourne

DEbbIE STOWE Director: Paul Greengrass Starring: Matt Damon, Tommy Lee Jones, Alicia Vikander, Vincent Cassel, Julia Stiles, Riz Ahmed On at: Movieplex Cinema Plaza, Grand Cinema & More, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall He’s back! Bourne again! Re-Bourne!

After sitting out the last installment in the spy franchise, Matt Damon returns as everyone’s favorite amnesiac assassin.

In the first three films – pacy, pared down Euro fare that tore up the espionage movie rulebook – Bourne (Damon) gradually put the pieces back together from his time as a top black ops killer.

The trilogy had reached closure, with Jason aware of his past and all the bad CIA apples brought to justice or dispatched, posing the question what

debbie.stowe@business-review.ro

www.business-review.eu Business Review | September 2016

38 RESTAURANT REVIEW

Authentic, at last

Photos: Mihai Constantineanu

Don Quijote at Pipera Shopping Center, Sos Pipera (next to Starbucks) tel. 0735 512 838

For 20 years I have bemoaned the lack of integrity in Bucharest’s ‘foreign’ restaurants, almost all of which are culinary frauds, which import no food whatsoever from the nation they represent. Rather, they just pop around to their local Bucharest supermarket and sell you local food with foreign names attached.

The worst offenders are the phony Italian chophouses, followed by socalled Chinese and Thai. Cheats, all of them. But Don Q is not in the company of these scurrilous rogues, for it is authentically Spanish, with a Spanish management and chef.

Don’t go there for a romantic candlelit dinner. It is rough and ready in the fashion of a German kneipe, or a Greek taverna. It is a place for foodies who adore fine wines and powerful Spanish cuisine.

Tables are long benches seating eight covers each. This is for good reason as the clientele do not conform to the beer-swilling stereotypes of Lipscani clubbers; instead they are happy, boisterous ‘family type’ locals and regulars who all seem to know each other, hence the long tables. Yes, they were uninhibited, happy and Spanish!

I was celebrating Britain’s greatest achievement since winning World War II singlehandedly, namely the fabulous Brexit victory, so we were in a good mood. This was enhanced by something apparently eccentric, but not in reality: a huge bowl of seashells on each

table. They were there for a good reason. prika). Oh, it was so good. Romanian Look at the map of Spain: it is sur- restaurants all screw up the mussels by rounded by ocean, the produce of overcooking them until they shrink into which has never been seen in Romania. bullets. These were perfect, soft, fat and So although a sophisticated European languishing in a perfect garlic, wine and will recognize and know the names of tomato sauce.

Next my friends ordered a classic the fish that recently departed these shells, there is, in most cases, not even ‘gazpacho’, the world famous chilled a name in the Romanian language for tomato and vegetable signature dish of many of them. So order by pointing at Andalusia, which is so often listed on your chosen shell, for the House im- the menus of tourist-trash Italian tratports them from Spain from time to torias. Here it was perfect and correctly seasoned and presented with a side of time.

In fact, they import everything on raw chopped veg to add to the soup.

Away to white ocean sea fish with the menu. Spanish food is cooked with passion. Not a la francais whereby ‘bacalao’ (salt cod). This dish has a 400French chefs measure each ingredient. year-old pedigree, and is almost the naNo. Spanish chefs throw in mountains tional dish of both Portugal and Spain. of garlic, shovel loads of spices and rivers of wine in their sauces. It is fabulous.

So a simple starter of ‘garlic prawns’ was so much more. We were asked if we wanted it simple, or with wine or hot spices. We chose both wine and spices.

It was fabulous, with tender prawns imported from Valencia, swimming in a lake of wine, spices and expensive olive oil. Blondie joked that the waiter should have said, “Would you like any prawns in your olive oil?” It was so good we insatiably soaked all the oil and wine up with fresh brown bread.

We passed on imported prawns flambéed in either whisky or rum, and settled for another starter of fresh mussels (moules/midi) in a sauce of tomato juice, garlic olive oil and pimento (pa-

To make it, take a huge, thick fillet of cod, and smother it totally in sea salt.

Press down and keep it chilled for 3-12 months. This process dehydrates and preserves the fish. To serve, break the salt crust and rehydrate the cod by washing it for two days.

The result is a white, light, fluffy cloud of fish with a deeply enhanced flavor. Thereafter, they steam the fabulous beast. The House offers it with a garlic sauce which must be avoided as it is far too heavy. I suggest you pour over an alternative, lighter sauce from another House dish.

Again, and still in the ocean, we ordered ‘merluza’ which was sliced on the bone and charcoal grilled in the fashion of a swordfish. It looked and tasted like a swordfish, but at a fraction of the price.

It was good, but dry and needed a sauce.

At this point, we were far too full to try their meat dishes. The House has a wood-fired oven which they put to good use with their roast lamb and suckling pig. To be fair to them I suggest you book these two beautiful dishes in advance.

More imported goodies abounded, such as hams (including Serrano) carved off the bone, and spicy Chorizo.

If you have only tasted local Romanian imitation Chorizo you will never buy it again after you have eaten the real thing here.

Romania in general and Bucharest in particular has the largest concentration of culinary fraudulent restaurants in the whole of the EU. Thus far there are only two French, one Turkish and one Indian restaurant which are ethnically/culinary correct. I am pleased to say that Don Q can be added to this exclusive group.

Michael Barclay michaelbarclay32@gmail.com