BR/09/2019

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www.business-review.eu Business Review | September 2019

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi

6 Real estate investments still

• Editor-in-Chief •

high with rising interest in industrial space

8 Turning over a new leaf: Mixed real estate projects get gardens

COVER STORY

A

Keeping the potential at high levels

10 5G will boost the digitization and transformation of Romania

lthough Romania has made significant steps forward in

ENTREPRENEURSHIP

the past few decades, it still has many challenges on its plate: from corruption to poor infrastructure and the

incoherent policies of the current government. Nevertheless, the local business environment has maintained course, proving that Romania is still attractive to foreign investors and provides opportunities for large deals. Indeed, commentators say that over recent years, Romania

24 Local entrepreneurs showing interest in AI development over global growth

has become one of Central and Eastern Europe’s most attractive

FINTECH

regions in which to start operations. According to research by JLL, by the end of 2020 the country is expected to be the second largest economy in CEE and it continues to catch the attention of investors from all over the world – not only from Europe, but also South

26 Banks and fintechs facing

Africa, the USA and China.

cooperation challenge on local market

This is why Business Review decided to dedicate a special cover story to the acquisition of UPC Romania by Vodafone Romania, one

CITY

of the largest deals in the country in recent years. The move is part of a global transaction between Vodafone Group and Liberty Global which concluded with the sale of operations in Germany, Hungary, Romania and the Czech Republic to Vodafone. But despite such headline-grabbing deals, pundits are warning that Romania may face a severe crisis as government policies and economic vulnerabilities weaken its perspectives over the medium term. With this in mind, the sustainable development of the local economy should be a top priority for our political leaders, who need to join forces to transform the economic challenges into real business opportunities.

38 New notes: Music of the XXI century

44 Expat eye 45 Restaurant review 46 Cultural calendar

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

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X


www.business-review.eu Business Review | September 2019

4 NEWS

WHO’S NEWS

2,500 warehouse will contain a high-performance automatic

BR welcomes information for Who’s News. Submissions may be edited fo­­­r length and clarity. Get in touch at anca.alexe@business-review.ro

sorting and packing line. Located in Dambovita County, MerryBerry covers 100 hectares, on which the shrubs were planted over 2016-2017, meaning the site will reach an annual production of over 1,500 tons of blueberries from 2021. MerryBerry therefore has the potential to become the largest organic blueberry plantation

Carlo Pignoloni is the new country manager of Enel in Romania, replacing Georgios Stassis, who left the Enel Group to take the helm of Greece’s top utility Public Power Corporation (PPC). Pignoloni has a degree in Mechanical Engineering from the Polytechnic University of Milan. He joined Enel in 1990 and has held several positions across the company’s various business segments. Pignoloni is not new to Romania, having run Enel Green Power’s operations in the country from 2008 to 2011.

Elmar Geisler is the new general manager of Porsche Romania. Over the past seven years, he has served as general manager of several Porsche Holding subsidiaries in Central and Eastern Europe: Serbia and Montenegro, Albania, Kosovo, and Macedonia. Geisler started his career at Porsche Austria in 2000, when he worked in Audi’s marketing department. In 2003 he was appointed general manager of Stoddard Imported Cars in the United States. He returned to Europe in 2005 as regional manager of Porsche Inter Auto.

page 5

in Europe, competing with big established producers in Spain,

MerryBerry has the potential to become the largest organic blueberry plantation in Europe

OTP Bank finances largest organic blueberry farm in Romania

Poland, Germany and France. The MerryBerry plantation has modern video surveillance systems, GPS monitoring of the machines and an irrigation system that ensures fruit production regardless of the rainfall water supply. Besides irrigating the blueberry crop, this system also allows the introduction

By Aurel Dragan

of fertilizers in the irrigation OTP Bank Romania has lent

the stores in Romania, UK and

water after a predetermined

RON 10.5 million to fund the

Germany with which the com-

nutrition program, at different

construction of a refrigerated

pany has distribution contracts.

stages of crop development.

warehouse at MerryBerry,

For immediate access following

the largest organic blueberry

harvesting, the warehouse is

to reach 200 hectares planted

plantation in Romania. The

located in the middle of the Mer-

and to be a major player at

new facility is intended to keep

ryBerry plantation and will use

European level,” said Camil

the fruit in optimal conditions

the most advanced refrigeration

Perian, general manager of

for sorting and delivery to

technologies. The surface of the

MerryBerry.

“Together with OTP, we aim

Romanians, Serbs lead switch to phone-only banking By Sorin Melenciuc Romania and Serbia are the top

both their mobile and their PC/

CEE markets in which digital

Mac for digital banking.

banking usage is more likely to

“On average, six out ten CEE

take place solely via mobile than

banking customers make regular

exclusively on a PC or Mac, ac-

use of digital banking channels,

cording to an Erste Bank Group

with Serbia and Croatia being

report. However, even in these

exceptions at the low end and

countries, the largest single

the Czech Republic a standout at

consumer segment is likely to use

the high end. While year-on-year

Nearly a quarter of Romanians who used digital banking channels in the past six months did so only on mobile


www.business-review.eu Business Review | September 2019

NEWS 5

Passenger numbers in Romanian airports up 7.7 pct to 10.7 mln in H1 2019 By Sorin Melenciuc

Ignacio Jaquotot Calvo has been appointed to lead the administrative board of Intensa Sanpaolo Bank Romania, replacing Ezio Salvai, who left the role this spring after two years. Calvo is a Spanish national who has been with the Intesa group for a long time, having mostly worked for its Slovakia subsidiary, VUB Banka.

The 16 airports in Romania posted a 7.7 percent increase in passenger numbers in the first half of this year to 10.7 million, an all-time high due mainly to international flights, while domestic passenger traffic declined, according to figures released by the National Institute of Statistics (INS). Total passenger numbers at local airports increased from 9.9 million in H1 2018 to 10.7 million in H1 2019. International passenger traffic rose by 9.4 percent in H1 2019, to 9.42 million, while the

Total passenger numbers at local airports increased to 10.7 million in H1 2019

number of passengers carried Airport passenger numbers

with domestic flights dropped

Napoca International Airport,

by 3.2 percent, to 1.3 million,

with 1.3 million passengers in H1

have soared in Romania in the

official data show.

2019 (+3 percent compared to H1

last few years due to income

2018), followed by Timișoara In-

rises, cheap flights offered by

Henri Coandă International

ternational Airport (715,000, -2.3

low-cost airlines and poor road

Airport (Otopeni), controlled

percent) and Iași International

and rail infrastructure across

by the state-owned Aeroporturi

Airport (616,000, +17.6 percent).

the country. In the last couple

București company (CNAB),

In 2018, Romanian airports post-

of years, no-frills operators like

posted an 8.1 percent hike in its

ed a 7.9 percent increase in pas-

Wizz Air, Blueair and Ryanair

total passenger traffic in H1 to

senger numbers to 21.8 million, a

have entered the domestic

an all-time high of 6.8 million.

record high due to international

flights market in Romania, con-

The second airport in Romania

flights, while domestic passenger

trolled for years by state-owned

by passenger traffic is Cluj-

traffic slightly increased.

Tarom.

Romania’s biggest airport,

Gijs Klomp has been appointed head of investment properties at CBRE Romania. Klomp has over 17 years of experience in real estate and has been involved in investment transactions worth more than EUR 2 billion. In 2006, he set up ING Real Estate Investment Management in Romania, which was bought in 2011 by US company CBRE and became CBRE Global Investors. He also served as the managing director of real estate consultancy JLL Romania and later became a member of the NEPI investment team.

growth rates for overall digital channel usage are rather modest, they do show a steady uptrend,” the report indicates. That uptick is being driven by strong gains in mobile banking usage, particularly in South-Eastern Europe, where many banking customers rely solely on their mobile phones to handle their digital banking needs. Almost one in three Serbians and nearly a quarter of Romanians who used digital banking channels in the past six months did so only on mobile.

Andreea Hamza has been appointed senior director of the new living department established by real estate consultancy JLL Romania in its Bucharest office, which will provide consulting services for the residential sector. Prior to joining JLL, she worked as head of marketing and sales at Hagag Development Europe. Hamza has been involved in real estate transactions worth over EUR 250 million, in several Romanian cities.


www.business-review.eu Business Review | September 2019

6 REAL ESTATE

Real estate investments still high with rising interest in industrial space Over recent years, Romania has become one of Central and Eastern Europe’s most attractive regions in which to start operations. According to research by JLL, by the end of 2020 the country is expected to be the second largest economy in CEE and it continues to attract investors from all over the world – not only from Europe, but also South Africa, the USA and China. By Aurel Dragan

Daniel Cautis, Dunwell

I

Marian Orzu, Dunwell

n Q1 2019, Romanian GDP grew by 5.1 per-

and relatively low vacancy rates encourage

around 23,000 sqm in the second and third

cent, while it increased by 4.1 percent in

developers to start new projects, with almost

buildings of the Campus 6 complex.

2018 – double the total aggregated result

300,000 sqm expected to be delivered in

recorded in the Eurozone at the time. A well

2019,” said Mike Atwell, JLL head of capital

OFFICE SPACE CONTINUES APACE

performing market and the good condition of

markets Czech Republic and leader director

According to real estate consultancy company

the economy are also clearly evidenced by in-

CEE capital markets.

Colliers International Romania, there is a

vestment volumes on the real estate market.

The development of the BPO and SSC &

favorable perspective for the Romanian real

According to forecasts, the market investment

IT sectors has had a significant impact on

estate market that could be maintained until

volume is expected to exceed EUR 1.1 billion

demand for prime office space in Romania’s

year-end.

by the end of 2019.

capital. Last year, local stock was extended

The first half of 2019 saw deliveries of

by 148,000 sqm. Developers are continuing

some 185,000 sqm in Bucharest, taking the

diversify their portfolio of assets mainly

to work on expanding their project portfolios,

city’s modern office stock to 2.6 million sqm.

focused their attention on Warsaw, Prague

including Skanska, which is introducing a

This is an increase of over 10 percent com-

and Budapest. Of course, these locations are

new level of certification to the market –

pared to last year’s end-June stock, making

still highly attractive and provide favorable

WELL – and also currently has two office de-

Bucharest the most dynamic among CEE

conditions for investing capital; however, we

velopments under construction in Bucharest:

capitals. The biggest projects were: the new

are observing a significant increase in Roma-

Campus and Equilibrium. The quality of these

Renault headquarters (47,000 sqm), Busi-

nia’s investment importance, especially its

projects has attracted leading international

ness Garden Bucharest (over 41,000 sqm),

capital city. Bucharest is the country’s biggest

tenants, with Microsoft Romania becoming

The Mark and the third phase of Oregon

office market where attractive prime yields

an anchor tenant, having recently secured

Park (both in the 25,000 sqm area), Timpuri

“Until recently, investors aiming to


www.business-review.eu Business Review | September 2019

REAL ESTATE 7 “There is high interest in eastern Romania

Noi Square C and The Bridge II (both in the

CTP and WDP, which together made up over

20,000 sqm area). The new buildings had

half of the supply in recent months, though

and new, less popular locations, in Bucharest,

good occupancy rates at delivery (75 to 80

other players are also growing very fast,

such as the north-east of the city, near the A3

percent on average).

notably Globalworth, P3, MLP and Element

highway entrance (Bucharest – Ploiesti). We

Industrial. Deliveries could be to the tune of

also see high demand for inner city logistics

stood at 188,000 sqm in Bucharest in the

around half a million sqm by year end, taking

projects, known for their ‘last-mile delivery’

January-June period, the best first semester

the grand total to around 4.7 million sqm of

services, where products can reach their des-

figure in the post-crisis period. Still, reloca-

modern storage space by year-end. Romania

tination much faster, areas such as Preciziei,

tions from competitive stock amounted to

continues to look undersupplied relative to

Pipera, Theodor Pallady and Berceni being

86,000 sqm, while net take-up decreased

its CEE peers, but a market of 8 million sqm

the perfect location for such investments. The

to a reported 49,000 sqm. The vacancy rate

of modern warehouse space by the end of the

high interest and demand in these areas came

inched higher at around 10 percent from 9.5

next decade looks like a safe call.

with the investments in infrastructure, which

Total demand for modern office buildings

percent at end-2018 and 9 percent in June 2018, while Romania’s regional submarkets,

Market take-up more than doubled in the

made investors secure land plots for future

first semester, to just over 240,000 sqm (ver-

developments and created huge opportuni-

sus around 110,000

ties in the market. Moreover, secondary cities,

sqm in H1 2018). A

like Roman, Bacau, Iasi, Craiova and Constan-

notable transaction

ta, are at the forefront when it comes to new

saw Pirelli lease

investments,” said Daniel Cautis, managing

64,000 sqm at a WDP

partner at Dunwell.

facility in Slatina in one of the biggest

DEVELOPMENT AROUND CLUJ-NAPOCA

deals in recent years.

Cluj County has become a landmark in the

This helped cement a

region in terms of economic and real estate

strong lead for auto-

development. Recently, investors’ interest has

motive as a driver of

also extended to nearby cities, within a radius

demand, accounting

of about 50 kilometers, according to real es-

for 52 percent of the

tate consultancy CBRE Romania. A 26-hectare

reported take-up in

plot, classified as an industrial park, has been

the first semester.

put up for sale in Ocna Mures, and CBRE has

Also, according

obtained an exclusive mandate to develop the

which saw their take-up nearly double to just

to Dunwell data, in the first half of 2019, from

under 30,000 sqm, enjoy lower vacancy rates,

all industrial spaces traded more than 125,000

with Iasi’s virtually non-existent free space

sqm was contracted through agencies, the

Mures, near residential district Malinului, on

and Cluj-Napoca’s below 10 percent.

rest within direct deals made by developers

the site of the former soda factory in Ocna

retail and industrial area. The land is located in the north of Ocna

with tenants. Approximately 50 percent of

Mures, Alba county. In close proximity to

quite lively, with another 150,000 sqm set to

the total surface transacted in H1 2019 was in

the site, the latest salt bath treatment facility

come online in the second half of the year and

locations near Bucharest, 70 percent of the

is also being built and will be completed by

over 230,000 sqm in 2020. We expect vacan-

deals being done by agencies. Other highly

next year. Additionally, a recreational area is

cies to continue climbing gradually towards

transacted cities are Timisoara and Ploiesti.

scheduled to be established nearby.

“The Bucharest office market remains

13 percent, though the impact of relocations

Analyzing agencies’ data, over 80 percent

“The future project in Ocna Mures is an

is delayed as a huge chunk of the deals have

of the total surfaces traded were warehous-

investment-competitive alternative to cities

been pre-leases, some set to be finalized in

ing, the rest being production, with Dunwell

such as Turda, Cluj-Napoca and Targu Mures,

2020-2021,” said Silviu Pop, head of research

securing nearly 90 percent of the transactions

considering its location, only 8 km from the

at Colliers.

for future production units.

A10 motorway junction and about 50 km

For 2019, Dunwell estimates the traded

from Cluj-Napoca, as well as the existing

INDUSTRIAL GAINS INTEREST

volume to be similar to 2018 and to reach

infrastructure and utilities available,” said

Around 300,000 sqm of new modern storage

500,000 sqm, either through agencies, di-

Valentin Popescu, senior consultant within

space came online in the first half of 2019. Bu-

rectly with developers or both.

the land development department of CBRE

charest accounted for over 40 percent of the

When it comes to new industrial space de-

Romania.

total deliveries. Outside the capital, invest-

liveries, the total in modern projects exceeded

ments continue to be mostly geared towards

the 4 million sqm threshold in H1 2019, while

some of which CBRE Romania is negotiating

cities in the region of Transylvania, which ac-

the potential for new developments an-

with several food operators, since modern

counted for over one third of new I&L spaces.

nounced for this year is around 750,000 sqm

retail in Ocna Mures is currently poorly

The market continues to be dominated by

across the country.

developed.

The plot comprises a total area of 26 ha, for


www.business-review.eu Business Review | September 2019

8 REAL ESTATE

Turning over a new leaf: Mixed real estate projects get gardens Bringing nature closer to communities is a new trend on the local real estate market, with Iulius pioneering this approach in its projects in Timisoara, Iasi and Cluj-Napoca. By Anda Sebesi

Nature is crucial for a healthy life and Iulius brought it to its offices

A

t present, Iulius is the sole real

“A major investment was required to create

involved special infrastructure work, water-

estate developer in Romania making

our parks and they come with significant

proofing, significant quantities of fertile soil

significant investments in imple-

maintenance costs on top. But they represent

and advanced flooding systems.” In addition,

menting large green areas within its projects.

a strength of our projects,” say representa-

the company used a large number of ripening

As the major mixed projects it has developed

tives. They add that the company’s invest-

high trees of various species brought from

so far involve urban regeneration, this step

ments in this

was a natural one and also one of its major

area focused

concerns and challenges.

on green plots

According to Iulius representatives, the

created from

company has invested EUR 13.2 million so

scratch over the

far in the three parks developed as part of

underground

its projects: EUR 2.5 million (in the park at

car park. “The

Palas Iasi, inaugurated back in 2012), EUR 8.7

landscaping was

million (at Iulius Town Timisoara) and over

very complex

EUR 2 million (at Iulius Parc in Cluj-Napoca).

because it


www.business-review.eu Business Review | September May 2016 2019

COVER REALSTORY ESTATE14 9

Italian nurseries in all of its mixed projects, in order to create the impression that the gardens had always been there. “For example, over 1,400 trees were planted in Iulius Town Timisoara park,” add officials. Iulius Gardens in Iulius Town Timisoara also includes an 800 sqm lake, large areas of special lawn where people can rest as in any of the world’s major parks, a gazebo, avenues for walking, and restaurants and cafeterias. Last but not least, Iulius Gardens has a carousel for kids, produced for Iulius Town by a company with over 50 years of experience in the production of equipment for amusement The mixed projects developed by Iulius focus on people and were built for the local communities

parks.

A STRONG ANCHOR FOR COMMUNITIES According to Iulius officials, the company’s mixed projects developed in Iasi and Timisoara focus on people and were built for the local communities. They meet the challenges communities in urban areas face every day. “The green component – meaning nature – is crucial for a healthy life and we brought it to our offices. Those who work in the office buildings that we developed have the chance to take a break and spend it in the park or simply relaxing after their workday,” they say. Easing the lives of those who work or will work in the office buildings developed in Cluj-Napoca, Iasi or Timisoara was one of the main targets of the real estate developer. “They don’t have to cross the entire city to enjoy green grass or the shade of a tree. In Iulius Gardens in Iulius Town Timisoara also includes an 800 sqm lake

addition, our parks have become real anchors and represent an important attraction for the entire community any time of the week. This is due to the natural environment we created and the regular events held,” add the representatives of Iulius. For example, the park at Iulius Town will be a vibrant place that will host a wide range of events, from educational and recreational activities for kids to cultural happenings like concerts by the Philharmonic, festivals and art exhibitions, sporting competitions and themed markets. For all its parks the company worked with Italian landscapers who collaborated with Romanian teams of specialists. “At Iulius Town Timisoara, we worked with a German company to create the lake, because we wanted it

For all its parks the company worked with Italian landscapers who collaborated with Romanian teams of specialists

to be as similar as possible to a natural one,” conclude the Iulius representatives.


10 COVER STORY

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COVER STORY 11

5G WILL BOOST THE DIGITIZATION AND TRANSFORMATION OF ROMANIA The implementation of 5G will help Romania to become more digital, while enabling transformation and modernization in the country, Vodafone and UPC CEO Murielle Lorilloux told Business Review. By Sorin Melenciuc


www.business-review.eu Business Review | September 2019

12 COVER STORY

Vodafone has taken over UPC Romania and entered a new market: convergent services. What does that mean for the customers of UPC?

Vodafone’s core business is mobile, but now you are entering a new market, with different competitors. How do you see the Romanian market in terms of competition?

We closed the deal on 1 August, after a long period of preparation,

There is a new market to address, but on the corporate segment,

having done a lot of work with both teams, Vodafone and UPC. So,

we were already in this market in some way through components

completion of the deal was the first priority. Now, we’re starting a

of our own network. On the corporate side, for our business cli-

new journey: being together and undertaking integration.

ents, we had already a full portfolio to offer, from mobile and fixed

From the customer’s point of view, we will continue to leverage the strengths we have on both sides, mobile and fixed, and our

to IoT services. So, on this side, I would say that it is going to be rather marginal

customers will continue to enjoy the quality of services, products

in terms of integration. On the consumer side, there will be added

and delivery that they receive today. We don’t want to rush and do

value due to a converged portfolio, and it will be for sure a great

too much disruption on that, because we are already delivering a

opportunity not only for us against the competition, but, first

good quality of services and we will continue to do so. Of course,

of all, for our customers – to have all the benefits from our side.

on the longer term, we are certainly going to leverage us being

Regarding the competition: from the first day I joined Vodafone

together by building a convergent portfolio of new benefits, new

Romania, I have always said that the competition in this country is

services and new innovations. This is an

unbelievable. It is a very tough market

ongoing process, it takes some time to

from a competitive point of view and

perfect, because we’ve just started the

this is to the benefit of the customers.

journey and we need to build it together.

Maybe the competition will change,

We had to balance when we’re going to

because all of us have our challenges,

launch the new services or new ben-

but on our side, I see many more

efits with doing it well, because, if we

opportunities. We will become, together,

had done it too fast, the results might

one of the biggest challengers among the

not have been too great and our clients

mobile & fixed players in the market and

would not be satisfied with what we are

I think that this is a really great oppor-

delivering. So, we had to prepare for it –

tunity.

there is a lot of IT and systems integration at stake. We also wished to produce meaningful services and benefits for customers and, when we are ready, we will offer these new services and products to them, which is actually going to be very soon. So, I’d say: if you are a Vodafone or UPC customer, be prepared, we will have great services and benefits to come.

Members of Generation Z are now becoming adults and are also becoming your clients. They grew up in a very technological environment – and your business is very technology-related. How are these new clients changing your business – and your market? They are the future and they are also, sometimes, the trend-set-

You described a lot of challenges for the management related to this integration. What are the main priorities you are addressing right now? At the moment we have three priorities. The first one is to pre-

ters. I think that one of the key components for them is to have the best experience. They don’t want to waste time, they want to get what they need quickly and easily. And I think this is all about digital. For over a year, I have set as

serve: we have two successful companies and we want to continue

a priority our digital transformation and the goal to become a tech

to deliver on our traditional businesses, on each component:

company, not only a telecom one. This is still moving forward in

mobile, fixed, TV and so on. So, that is our first priority, to continue

parallel with the integration with UPC. For me, digital transforma-

to deliver well to our combined customer base, on all our core

tion is not only important for the young generations to come, but

services. We also want to accelerate our growth, of course, and in

it is important for the entire Romanian society – the corporate side,

order to do so, we need to bring new benefits, new services, new

the general public, young adults and all our customers.

innovation to our customers – and this is the second priority we

That’s why this is at the top of our priorities. I could talk for

have. The third priority, and perhaps the most important one, is

an hour about digital, whether I’m talking about digital content,

to work together. We need to have the combined teams sitting and

digital gears, digital sales, digital interactions, and we have already

working together, learning about each other, understanding each

implemented a lot of IT capabilities that we needed to develop in

and every business and how to integrate them and to have the best

order to have the right applications and customer experience from

seamless customer experience. And this has definitely started from

a digital point of view. We have different teams and different tasks

day 1 of the integration. Both teams are engaged now and it will

for that; it is definitely one of our biggest priorities.

definitely take some time to discover how to build together.


www.business-review.eu Business Review | September 2019

COVER STORY 13

In many areas, from medical to tech companies, the trend is to create personalized offers for clients. How is this seen in your business?

through the right tools – digital, Big Data, AI – in order to make them

We have already started this journey, of being more relevant to each

that it is a combination of both. You will always have a percentage

and every customer, doing personalized offers for them, provid-

of your customers who will go fully digital, who think that they

ing, of course, GDPR consent, which has changed a lot the way we

don’t need so much personal interaction.

interact with our customers. But if we have the customers’ consent, we have the possibility

more and more relevant and allow them to have more time to interact rather than having too many repetitive tasks. So, I really think

But some will still need personal interaction and we should be ready to offer support to both types of customers.

to provide 7 to 10 times more personalized offers for our customer base than before, and we are continuing to make improvements. for your needs, and also Big Data and Machine Learning. Because

We are approaching a major event: the 5G auction in Romania. What will really bring large-scale 5G access to Romanian customers?

the more we personalize, the more we see the reaction of the cus-

For me, 5G is really about the future of Romania. It’s all about how

tomer base and we continue to learn.

fast it will come, how ready the full ecosystem will be and the take-

There are two things here: customization and personalized offers

We have also developed some Machine Learning, Big Data and

up of the technology for each and every individual, as happened for

Artificial Intelligence models in order

the 3G or 4G technologies in the past.

to continue to learn and improve our

In some way, there is a penetration

customization. This is something very

not only of devices, of network coverage.

important and related to digital because

We have already launched 5G services

you can have a personalized offer from

and we will be at the forefront of this

a call center agent or from a store agent,

technology, we will continue to innovate

but you can also expect this from the

on this side.

digital experience that you get through

We are doing this together with IoT,

your website or application and then you

because an urban IoT technology is also

expect eventually to have the right push.

very important; it is a success factor

So, we are learning, we are propos-

together with 5G. So, it is about the

ing more and more push, providing we

readiness of society. It is about ideas or

have customer consent, and what could

solutions that will help Romania to be

make sense for you as a customer to get

more digital. It is about having the ma-

as an offer, and then we can continue to

turity with the partners, with different

improve and to be more relevant for their

stakeholders, and of course, hopefully

needs.

the 5G auction going right to the success factors. Regarding the ideas or solutions that we can give to the cus-

Many warn that Artificial Intelligence threatens jobs. Do you think that this is correct or might we reach some kind of symbiosis between AI-performed tasks and human employees?

tomers: you have heard of lots of IoT solutions coming for a smart

This is twofold. Let’s start with the employees. Some of our employ-

doing it. Some others will be bigger with 5G coverage, and we will

ees sometimes do repetitive tasks, they want to engage more and

partner with some key corporate customers or public stakeholders

they want more power and tools to engage better with the custom-

to develop that. I can mention agriculture, utilities, transportation

ers they are interacting with.

and automotive.

So, everything is about that: proving to them that with the tool,

city, public transportation, smart homes or smart retail. Some of the solutions can be done through NarrowBand-IoT and we are already

Of course, holograms have been one of the showcases – it is

the intelligence, and the learning through digital solutions that

going to be a dream for gamers or music lovers in terms of latency

they will actually be able to pitch faster and more efficiently to the

and what they will be able to do. The tourism industry will also

customers. The idea is to empower them. Romanians will continue

be transformed through AR (augmented reality) and VR (virtual

to be Latin people and they will still want to have someone to talk

reality). They will be able to enrich their portfolios much more than

to, to be able to trust and to interact with sometimes.

ever before. But they need to be adapted to us. We need to build the

But Generation Z will maybe need this less than some others and

future with each industry and, of course, with the public stakehold-

this is fine, because this depends on everybody’s needs. We need

ers to be sure that we have the right success factors for the digital

to be there – I believe very much in the customer experience. Last

Romania.

year, we insourced our call centers so all call center agents are now Vodafone employees, part of the Vodafone family, with a Vodafone

Could 5G become a new driver of economic growth?

career, understanding the needs of the customer through day-to-

Absolutely. It will be an enabler of transformation, of moderniza-

day interactions and supporting them. Now, we empower them

tion, of new businesses to be created.


www.business-review.eu Business Review | September 2019

14 COVER STORY

It takes two: Global giants join forces The acquisition of UPC Romania by Vodafone Romania, part of a global transaction between Vodafone Group and Liberty Global, is one of the largest deals in Romania in recent years. But it is not the first for these companies, both making significant moves on the Romanian market along the years.

I

By Aurel Dragan

n 1996, a company

The deal made UPC one of the

called MobiFon entered

top players in the cable televi-

the market, winning

sion market with 1.3 million

one of two GSM licenses. Next

customers. At the time, UPC

year, the Connex brand was

dominated the cable TV market

launched, alongside the first

along with RCS&RDS. One year later, it completed

GSM network. The 135 days between getting the license

the acquisition of Focus Sat, a

and launching the network

satellite TV provider. Among

was a record at the time for

its later transactions was the

the development of a teleco-

2008 absorption of Cablevision

mmunication network. By

Romania, Sebamr and Electron

2005, when the mobile opera-

M. Bit Telecom. Focus Sat was

tor had almost 6.1 million cus-

the only entity not included in

tomers, it had launched XNET

the transaction between UPC

internet services for landlines,

and Vodafone.

WAP for mobile and the first 3G connection network.

AN EUR 18.4 BILLION DEAL

Vodafone Group bought

Discussions regarding a deal

MobiFon company in 2005,

between Vodafone and Liberty

but it didn’t change the brand

had been on and off since 2015.

until April 2006 when, with a laser show in the capital, Connex

The deal was announced in 2018 and was approved by the European

became Vodafone. The color of the logo also changed, from green

Commission in July 2019. The move concluded with the sale of

to red. A few days later, the company introduced the HSDPA – 3G

operations in Germany, Hungary, Romania and the Czech Republic

broadband, reaching new speeds for mobile internet connections,

to Vodafone, which paid EUR 10.8 billion in cash and assumed EUR

and Vodafone Live!, a web portal with more than 10 million users

7.6 billion in outstanding debt. It was the biggest deal completed by

globally.

Vodafone since the acquisition of Mannesmann in 2000 for GBP 112 billion.

UPC ROMANIA, A HISTORY OF ACQUISITIONS

The operation in the four countries accounted for 28 percent of

In 1992, United International Holdings, the name of Liberty Global

Liberty’s consolidated operating cash in 2017. The enlarged Voda-

back in the day, started investing in Romania by acquiring shares

fone has now around 54 million cable TV and broadband customers

in several local cable companies. UPC Romania was established

across Europe, with a potential footprint of 110 million homes and

in 1999 and later development was carried out in the same way,

businesses. Vodafone paid the equivalent of 11.5 times the opera-

with the purchase of local cable television providers in Bucharest,

ting cash flow of Liberty assets in order to strengthen its business in

Botoșani, Cluj-Napoca, Focșani, Ploiești and Sfântu Gheorghe.

Europe. As of 31 March, 2019, Liberty Global was the world’s largest

In early 2005, the firm reached 333,000 subscribers, up from just

international TV and broadband company, with operations in ten

15,000 in 2000. In the same year, UPC made the most important

European countries. This is now down to six, namely the United

acquisition in Romania, buying Astral Telecom for USD 420 million.

Kingdom, Ireland, Belgium, Switzerland, Poland and Slovakia,


www.business-review.eu Business Review | September 2019

COVER STORY 15

covering a total of 25 million homes (TV, broadband and landlines)

has the role of Consumer Business Unit Director for Vodafone and

and 6 million for mobile services. The company also owns 50

UPC.

percent of VodafoneZiggo, a joint venture in the Netherlands with 4

He joined Vodafone in 2009 and has since held a number of se-

million customers subscribing to 10 million landlines and 5 million

nior management roles, including Head of Customer Value Manage-

mobile services.

ment, Pricing and Commercial Strategy in Egypt, as well as Head of Prepaid Segment in Vodacom, South Africa. In March 2018, Mostafa

A BIG NAME IN ROMANIA

El-Beltagy moved to Vodafone Romania as Customer Business Unit

The Romanian market is divided between three companies that

Director.

have mobile communications, TV services and broadband internet.

Mihnea Rădulescu, the former CEO of UPC Romania, is now Vo-

Orange, Telekom and Digi Communications all have a significant

dafone and UPC Business Unit Director. Before becoming the CEO of

footprint on both sides of the market (mobile and fixed). Now, Vo-

UPC Romania, he has been Vice President for the B2B sector within

dafone is muscling into the competition, with 9 million customers

UPC CEE, coordinating the business divisions in Romania, Hungary,

for mobile communications and 1 million on the TV and broadband

Poland, Czech Republic and Slovakia. Cătălin Buliga is the Technol-

internet market.

ogy Director of Vodafone and

“The combination of UPC

UPC Romania. He has a 30 years

Romania’s operations with those

experience in the telecom indus-

of Vodafone Romania will lead

try, having worked for Telekom

to the creation of an important

(9 years), Liberty Global (7 years)

player with converged services

and Vodafone (14 years). Before

that will increase competition

becoming Vodafone Technology

in the telecom market, bring-

Director in May 2016, he held the

ing multiple benefits to both

position of Chief Technology

residential and business

Officer for UPC Romania and

customers – more value, more

UPC Hungary. Ioana Mihăilescu,

choice and more attractive

who joined Vodafone in 2012 as

offers. It will also help accelerate

Customer Operations Support

the pace of investment in the

Director, is now Customer Op-

telecom market,” said Mihnea

erations Director. In Vodafone,

Rădulescu, Vodafone and UPC

she also worked as Customer

Business Unit Director.

Value Management and Channel

“This transformative acquisi-

Management Director, being

tion is creating a significant

promoted to the Vodafone Cu-

partner of converged telecoms

stomer Operations Director role

services, bringing more value

in 2018.

to our customers and creating an improved ascending path

The new Vodafone and UPC Romania Finance Director is

for Romania’s digital economy. It also translates into a very good

Sibaji Biswas. He joined Vodafone India in 2011 and moved to Roma-

opportunity to challenge the dominant positions of the electronic

nia in 2017 as Finance Director. In India, he held various roles across

communications sector. The employees of both UPC and Vodafone

Corporate Finance and Supply Chain Management, while also being

have an unmatched premieres history on the local market, even in

part of the core M&A team that successfully completed the Voda-

Europe. I am confident that their combined expertise and proficien-

fone Idea merger. Melissa Fragiski will be HR & Property Director,

cy will lead to new firsts and innovation in products that will have

after joining the Vodafone team in 2012 in Greece and moving to

Romanian consumers as the most important beneficiaries,” said

Romania in September last year for the role of Human Resources

Murielle Lorilloux, CEO of Vodafone and UPC Romania.

Director. At Vodafone, she played a major role in two previous

As both leaders said, the acquisition is one of the most significant in the telecom industry in Romania and it promises to bring

M&As, as well as leading other transformational programs. Livia Dumitrescu, the Legal & External Affairs Director of Voda-

higher quality communications services to customers after combin-

fone and UPC Romania, joined Vodafone in February 2019, bring-

ing Vodafone’s expertise in mobile services with the proficiency of

ing a rich record of academic and professional achievements. She

UPC specialists in TV and fixed services.

worked for international organisations and law-firms in London, New York, Thessaloniki and Luxembourg. Livia Dumitrescu has also

NEW EXECUTIVE TEAM

established the first corporate ombudsman office in Romania, while

Murielle Lorilloux continues to be the artisan of the fusion, as CEO

concurrently occupying several leading roles with OMV Petrom SA,

of both companies, Vodafone and UPC Romania. Mostafa El-Beltagy

ultimately to become the Corporate Affairs & Compliance Director


www.business-review.eu Business Review | September 2019

16 COVER STORY

of the company. Răzvan Bogasiu occupies the role of Senior

large areas, even when devices are underground or deep within

Manager, Strategy & Wholesale. He joined Vodafone Romania in

buildings. It operates on a licensed spectrum, which means applica-

2014 as Business Development & Strategy Manager. He is also hold-

tions using NB-IoT technology will benefit from the same level of

ing the role of Integration Leader in the Vodafone-UPC Romania

security and reliability used in mobile networks today.

transaction, coordinating all integration activities, providing governance and effective tracking of the execution. The new Executive Management Team is a good representation of the multi-

Vodafone Group has been actively deploying NB-IoT technology in Spain, Ireland, the Netherlands, the Czech Republic, Turkey, Italy, Australia, South Africa and Germany.

national character of the Vodafone Group, which has mobile operations in 25 countries, partners with mobile networks

5G ALREADY ON THE MARKET Vodafone Romania has switched on the

in another 41 and has fixed broadband

first sites in its SupernetTM 5G network,

operations in 19 markets. At the end of the

ready to enable Romanians to access the

first half of 2019, the company had approxi-

outstanding capabilities of this latest

mately 640 million customers.

technology. “We are thrilled that our SupernetTM 5G network is now live in Bucharest’s busy areas and

INNOVATION ON THE GO

will expand to other major cities in Romania by the end of 2019.

Throughout its history on the local market, Vodafone Romania has

Vodafone is proud to pioneer this new and exciting journey for

invested in innovation, being the first to provide GPRS (2001), then

mobile communications services, where technology and innovation

3G (2005) and 4G services (2012). Last year, Vodafone Romania

will enable the best digital experience for Romanians,” commented

launched the first live NB-IoT (Narrowband Internet of Things) network in

Cătălin Buliga. The operator also launched the first

Romania with countrywide coverage, to

monthly subscriptions for 5G connection,

enable its enterprise customers to develop

after expanding 5G coverage to Cluj-

and implement a wide range of solutions

Napoca and Mamaia. “We are very proud to

and applications to improve their business

be amongst a handful of operators globally

processes.

and the first in Romania to have launched

This national premiere comes shortly

5G services and commercial offer. This

after a successful NB-IoT test realised by

speaks to our commitment to being at the

Vodafone Romania and OMV Petrom on

forefront of innovation not only locally,

equipment located in the proximity of pro-

but also globally, and making sure that

ducing wells, in isolated areas where there is no internet access or GSM coverage. The NarrowBand-IoT technology offers great power efficiency,

Romanian users get the opportunity to experience leading technologies. We are committed to continuing our mission and long-term investments in state of the art technologies

so devices connected through NB-IoT can

in order to support and develop the digital

run for ten years on a single battery charge,

Romanian society in the era of speed,” said

while its low bandwidth requirements

Mostafa El-Beltagy.

mean that most use cases require just a few bytes of data to be transmitted daily by

FUTURE ON THE RISE

these devices.

Apart from the integration of the two

“We have upgraded our countrywide

companies and their teams, Vodafone is

network to enable NarrowBand-IoT ser-

looking into expanding 5G, as the licens-

vices as a normal step in a world where

ing process for the spectrum is just weeks

businesses are embracing large-scale IoT

away. This will include many investments

projects. The NB-IoT technology is unlock-

made by the Romanian operator and will

ing a new wave of applications that are

lead to the expansion of IoT services. At

part of the 5G era and have not previously

the same time, it will bring more combined

benefited from connectivity due to barriers such as power, cost and

offers of fixed and mobile services from Vodafone. “For Vodafone

propagation,” said Cătalin Buliga, Technology Director.

Romania, this is a major step towards becoming a consolidated,

NB-IoT has the potential to transform business models across

convergent operator, which will be able to offer best in class fixed,

a wide range of industries due to its very specific characteristics,

mobile communications, internet and TV services. I would like to

which make it ideal for connecting thousands, or even potentially

say a big ‘thank you!’ to my wonderful team, who put passion and

millions, of devices in the field. It provides strong coverage over

purpose into everything they do,” said Murielle Lorilloux.


www.business-review.eu Business Review | September May 2016 2019

COVER STORY 17 14


18 INTERVIEW

www.business-review.eu Business Review | September 2019

Gyula Fater, OTP Bank: We might be the only bank in Romania betting on the human touch OTP Bank Romania plans to double its market share within the next five years, mainly by being more and more customer-centric, OTP Bank’s new CEO Gyula Fater told BR. By Sorin Melenciuc You are the new CEO of OTP Bank Romania, as of June. What is your experience and how have you found Romania – is it a good country for expats? Before everything else, it’s a beautiful country, I cannot wait to visit more of it. I think Romania is also good for expats. People are open, friendly, and ready to help, and many of them speak English, be it in an urban or rural environment. Professionally speaking, since most of the banking regulations conform to European norms, I’ve had no problem understanding the regulatory environment. I found a great team at OTP Bank, very competent, enthusiastic, and full of energy, not to mention ready to take on further challenges. Moreover, we are expanding, opening new branches, and the goal is to recruit colleagues worthy of our present team.

What are your targets for the bank? OTP Group is now present in 12 countries and its services are used by more than 18 million customers. Insofar as Romania is concerned, the purpose of OTP Bank is to grow organically and to improve its client service. In the first semester of this year, we more than doubled our profit, reaching RON 53.6 million, our target for the entire year. The money we make will be reinvested according to a five-year strategic plan which we implemented to double our market share and asset size. The main tool is to be more and more customercentric. We might be the only bank active in Romania that bets on the human touch.

You said that OTP Bank plans to increase its market share to 5 percent long-term. At the end of 2018, OTP Bank was the ninth biggest bank in Romania in terms of assets, with a market share of 2.45 percent. How realistic is your target and how long will it take to reach it?


www.business-review.eu Business Review | September May 2016 2019

COVER INTERVIEW STORY 19 14

It’s not an easy task, but what is? I’m with

Going digital is not a challenge, but a daily

Not in our case. We don’t go for digital or

Nadia Comaneci on this one: “Life is not easy

imperative. Of course, it is not cheap and it

physical, but for digital and physical. I

for anyone. You have to have ups and downs.

requires resources, but there is no other op-

believe customers still need personal contact

You can make mistakes. You learn and try not

tion. Hence, as we speak, we’re working on

and in certain cases even more so since prod-

to make them again. That’s pretty much my

Apple Pay, a mobile app, as well as on several

ucts are getting more and more complex. We

principle.” It is one that I share.

completely digital solutions.

are not closing branches, we’re even hiring

As far as our target is concerned, we have

I think the biggest challenge for us, and

secured resources to fund and support this

for every bank, as a matter of fact, is to make

five-year program. We have already started to

the right selection among the many ideas out

hire new colleagues and we have a very ambi-

there that are trendy nowadays: which one

tious strategy that affects all the segments.

is backed up by real customer demand and

new advisors, and we’re doing digitalization as we strengthen our physical presence.

which one is only a widely used buzzword

You recently said that OTP Bank Romania will focus on lending to SMEs. What kind of SMEs are your targets?

During the last couple of years, the Romanian banking sector has experienced a fast consolidation process, with unprecedented mergers and acquisitions. Is this process over?

with no long-term impact.

We focus on servicing our clients, from

What do you think about collaborating with fintechs: is OTP Bank open to this idea?

it is true that in SMEs (where we are quite

I don’t think the age of mergers and acqui-

Not only are we open, but we are collaborat-

the emphasis is also on full service, not only

sitions is over yet. The increasing level of

ing with them right now. Our approach is to

lending.

regulations and narrowing margins leads to

manage this at group level, so we are working

consolidation. We are also ready to take part

with the Innovation Lab in Budapest. Further-

in that if there are available opportunities.

more, this year there are a couple of fintechs

What are the main challenges when working with SMEs as a bank in Romania?

from the region that were selected for further

There are no specific challenges when work-

collaboration. We consider fintechs as poten-

ing with Romanian SMEs. This is a tough

tial partners, not enemies.

market everywhere. Most banks target the

Some experts say that the main challenge in the medium term for local banks is the incorporation of the Digital Revolution. What are the digital challenges for OTP Bank?

corporate to private individuals. However, strong) we also want to increase our value proposition to micro-businesses. But here

larger SMEs since there is significant invest-

Is the Digital Revolution a threat to employment in banks?

ment needed upfront, as in the case of retail. Whereas we also target micro SMEs.


www.business-review.eu Business Review | September 2019

20 WORKFORCE

Importing labor: a short-term solution to a historical workforce crisis Local authorities and employers alike are addressing the country’s workforce crisis by adopting a short-term solution long tried in these realms – importing foreign workers, a measure that seems to temporarily ease a long-term problem. By Sorin Melenciuc and 13th centuries through this system, and similar measures were also adopted in Wallachia and Moldavia following their foundation, in the 14th century, in the wake of the retreat of the Mongolians, according to historian Laurentiu Radvan, a specialist in medieval Eastern Europe. In fact, urban life in today’s Romania emerged through what is now called the “import of foreign workers”, even if we may extend the concept to the “import of people.” But importing people was not enough to fill the density gap and a constant obsession of local voivodes in Moldavia or Wallachia was “to fill the land with people” during the following centuries, as wars and plagues curbed population growth.

EXTRACTIVE INSTITUTIONS Urban life in today’s Romania emerged through what is now called the “import of foreign workers

Putting the economic development of a nation in its historical context may clarify some

n August, the Romanian government

I

the continent have adopted this measure. Ro-

to industrialize at the end of the 18th century,

increased quotas for non-EU foreign

mania, like most of its neighboring countries,

when urban civilization was already well

workers in 2019 by 50 percent to 30,000

was historically a poorly populated area, and

developed.

work permits, an all-time high, under the

even now its population density is three times

pressure of higher demand from local com-

lower than in Western Europe.

panies claiming they are suffering from the

aspects of the issue. Western Europe began

When the first medieval kingdoms began

Romania missed the start of modernity and its industrialization began much latter, in the first half of the 20th century, and has

to expand in the regions, they addressed the

never been completed. One of the main

low-density problem through policies de-

causes of this historical failure was the politi-

Inspectorate for Immigration, a branch of

signed to attract people in order to populate

cal and economic system in Romania, and

the Ministry of Internal Affairs, had issued

and develop the lands.

experts now have better tools to understand

workforce crisis. The authorities said that the General

this year (until August 23) 16,540 new work

These measures were mostly used in

the problem. In their book, Why Nations Fail:

Hungary and Poland through a system called

The Origins of Power, Prosperity, and Poverty,

locatio: individuals, or locatores, were paid

published in 2012, economists Daron Acemo-

is much higher, as Romanian companies

to bring people (hospites), mainly from

glu and James A. Robinson argue that political

requested 19,173 work permits during the

Germany, to settle in their sparsely populated

and institutional choices are more important

period.

realms and to develop towns, villages, crafts

than geography, climate, culture and religion

and commerce. Most towns in today’s Tran-

in explaining the emergence of prosperity or

HISTORICAL PROBLEM

sylvania, part of Hungarian kingdom during

poverty.

This is not the first time the eastern reaches of

the Middle Ages, were created during the 12th

permits for non-EU foreign employees. But the demand for foreign workers

According to them, institutions are “inclu-


www.business-review.eu Business Review | September May 2016 2019

COVER WORKFORCE STORY 21 14

sive” if many people have a say in political

have inclusive institutions and are gener-

pared to 2017, when only 219,327 people from

decision-making, or “extractive” if a small

ally developed. During most of our history,

Romania moved abroad.

group of people control political institutions

extractive institutions were remarkably stable

and are unwilling to share their power.

because most people had no choice but to ac-

FROM EXTRACTIVE TO INCLUSIVE

cept them. This was the case in Romania too.

But recent years have also brought some good

is Korea, which at the beginning of the cold

Before the Communist regime, the system

news for the country. Romanian society is

war split into two separate states which have

was stable because 80 percent of the popula-

changing, and its political institutions are un-

evolved very differently ever since: one is

tion was rural and migration was too costly,

der pressure to change as well. A real middle

now a very poor country, while the other is

while the Communist regime simply closed

class is emerging in major cities, for the first

a modern developed nation despite the fact

the borders and forced people to stay in the

time in the country’s history, and massive

that, from an economic perspective, they

country. After the collapse of the Communist

migration to wealthier states is changing the

started from the same point seven decades

regime, new borders emerged: Romanians

structure of rural communities as well.

ago. Looking at Romania from this perspec-

needed visas to travel to Western countries

tive could help better explain why the coun-

with inclusive institutions, and few were able

to this new challenge by adapting old tools

try failed in expanding prosperity and why

to fulfill the conditions or afford a visa.

because it needs people who accept it in order

One of the best examples of this concept

millions of Romanians have chosen to leave in search of a better life abroad. Historically, Romania was an oligarchy controlled by boyars or “mosieri” (who

The extractive system is now responding

This system began to change as recently

to survive. Rather than convincing people to

as 15 years ago, as Romania gradually became

stay, it prefers to bring other people – the new

part of Western security and economic insti-

“hospites” – from other extractive systems

tutions such as NATO and the EU.

who don’t really have the ambition to chal-

owned most of the main economic resources – the land), by a small group of nomenclaturemembers during the Communist regime, and by a limited number of members of political and politically-connected business classes – many of them with connections in the former Securitate or Communist Party before 1989 – after the collapse of Ceausescu’s regime. This institutional tradition is of a purely “extractive” nature, meaning that the members of the elite – in any historical period – extract most of the benefits of value-added in the economy while leaving most other people precariously disconnected from economic development. Two recent studies released by the World Bank, analyzed by Business Review, show that 40 percent of Romanians are disconnected from economic growth and that

From a purely “extractive” system, Ro-

lenge the current order.

the country’s current tax system increases

mania gradually began to evolve towards a

poverty, especially for rural households and

partially “inclusive” country, although only

to implement in Romania as the country is

families with children.

residents of large cities, where foreign invest-

in fierce competition with more developed

ment is concentrated, are connected with this

countries, which are also hit by workforce cri-

LACK OF OPPORTUNITIES

“inclusive” part of the country. But many oth-

ses, to attract people. As a result, the number

Historically, extractive institutions were

ers, and not only from the undeveloped areas

of foreign workers in Romania is still negli-

the norm since the dawn of “civilization”

of the country, saw in this new historical pe-

gible compared to other EU countries.

and the emergence of the state-concept in

riod an opportunity to escape a vicious cycle:

Mesopotamia, 6,000 year ago, while inclusive

around 4 million Romanians have emigrated

is from extractive to inclusive countries, and

institutions were a rarity until the 19th cen-

and many others continue to do so.

this trend doesn’t seem likely to change.

tury, when industrialization and spreading

Official data show that 238,926 Romanians

But the new “locatio” system is difficult

Historically, the general population flow

From this perspective, the only long-term

education forced institutional changes in the

left the country in 2018, while 181,344 resi-

policy to address the current workforce crisis

Western World.

dents of other countries moved to Romania

is to give people incentives to remain in the

last year, giving a negative migration rate

country, by offering them opportunities and a

have extractive institutions and are usu-

(-57,582). These data suggest that migration

decent quality of life, and not to put them in

ally poor, while just a minority of countries

to wealthier states accelerated last year com-

competition with immigrant workers.

Even now, most countries around world


www.business-review.eu Business Review | September 2019

22 MACROECONOMY

Crisis coming: Experts warn of crunch in 2020-2021 Romania is heading towards a severe crisis as government policies and economic vulnerabilities weaken the country’s perspectives over the medium term, according to several renowned local economists. By Sorin Melenciuc the budget structure in 2019. “A third of total revenues (RON 115 billion) come from the work of employees, meaning the contributions paid to the pension fund, and the health fund, another third comes from the taxes on consumption, VAT and excise duties (RON 109 billion), one tenth is from European funds (RON 32 billion), another tenth comes from income and property taxes, and only RON 18 billion, or 5 percent, from corporate income tax. Again: only 5 percent of the country’s budget comes from the taxation of corporate profits. Well, what functional economy has the PSD created here, where companies have such a small profit?” he argues. According to Peiu, in 2021, Romania will Romanian economy has already caught the Greek disease, due to the budget structure in 2019

be in full economic crisis, as the government will have to pay out RON 80 billion more in pensions than this year, RON 50 billion more

FIRST WARNING

(PSD) since the general election in 2016, an-

in public servants’ wages and RON 15 billion

Three highly-reputed experts have sounded

nounced it would leave the government after

more in interest rates on its debt. “And we

similar warnings that Romania is on the brink

several days of tense negotiations with the

will have a budget of only RON 100 billion

economically. The first came from Eugen Rad-

prime minister, Viorica Dancila.

higher, if we keep the same proportion of GDP as now. And look, at only 35 percent of GDP,

ulescu, a director within the National Bank of Romania (BNR). “We are in an extremely

ABANDON ALL HOPE, YE WHO ENTER HERE

the external public debt will be the same as

difficult situation, politically and economi-

The second warning came from a highly

Greece in 2009-2015. We will cross Hell and

cally. I don’t think we have the resources to

regarded political analyst, Petrisor Peiu. Us-

get out of there with a much smaller econo-

hold on for another year and a half, until a

ing Dante-esque language, he warned that

my,” he predicted.

new government, resulting from term elec-

a major crisis could occur in 2021, after the

tions, can begin to repair what is now badly

Parliamentary elections. “Here is, symbolical-

HIGH FISCAL IMBALANCES

broken,” Radulescu publicly cautioned at

ly, Romania today: in front of the entrance to

A third warning comes from Lucian Croitoru,

the end of August. He described the current

Hell, contemplating the troubling predictions

an adviser to the central bank governor in

government’s policies as “toxic” and appealed

of a dark future, but unable to return from the

Romania. “As before 2009, fiscal policy is

to political parties to form a new ruling coali-

road and get far away from that place. From

contributing to the economy’s overheating

tion and a new government “made up of truly

a disease that today seems minor and cur-

and capital inflows are high. The results are

competent people”.

able, in three years, Romania will develop a

similar to those recorded before 2009: we

His comments came just a few days after

financial cancer, which will ruin, abruptly and

have unsustainable structural fiscal imbalanc-

the Liberal Democrats’ party (ALDE) led by

without escape, all the healthy economic tis-

es, relatively large external imbalances (the

Senate president Calin Popescu Tariceanu,

sue,” he wrote in an article published by ziare.

second largest current account deficit in the

which has been part of Romania’s ruling coali-

com. Peiu argues that the Romanian economy

EU) and an external debt of EUR 103.7 billion

tion along with the Social Democratic Party

has already caught the Greek disease, due to

(in June 2019),” he wrote in his blog.


www.business-review.eu Business Review | September 2019

ADVERTORIAL 23

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www.business-review.eu Business Review | September 2019

24 ENTREPRENEURSHIP

Local entrepreneurs showing interest in AI development over global growth Entrepreneurs in the artificial intelligence (AI) field are building startups that aim to disrupt large swathes of the economy, ranging from healthcare to telecommunications, retail, finance and transportation. Some USD 1.9 billion worth of venture capital deals involving AI and machine learning companies had been carried out in Europe by the end of summer, already exceeding the funding raised last year. By Ovidiu Posirca the tech field are flocking to implement such solutions in order to secure funding.

AI – LEARNING BY DOING For instance, in Europe startups with AI in their descriptions have raised 15 to 50 percent more funding than other software startups, according to an analysis of 2,830 technology startups by London-based investment fund MMC Ventures, quoted by the Wall Street Journal. The analysis shows that 40 percent of companies classified as AI startups showed

no evidence of using AI in their products. In Europe, as of August 20, there were 323 venture capital deals involving AI and On the local market, entrepreneurs are learning the ropes when it comes to AI

G

lobally, AI-based startups from China

machine-learning startups that brought in some USD 1.9 billion, according to PitchBook. This exceeds last year’s result of USD 1.8 bil-

Among them is UiPath, a startup with

lion raised across 520 deals. On the local market, entrepreneurs are

and the USA have raised billions of

Romanian roots that has raised USD 448 mil-

dollars and a total of 11 of them are

lion from investors. The firm uses AI for its

learning the ropes when it comes to AI and

robotic process automation (RPA) platform.

machine learning functions for their products

unicorns. These are startups valued at more than USD 1 billion.

AI has become a buzzword and startups in

and services.


www.business-review.eu Business Review | September May 2016 2019

ENTREPRENEURSHIP COVER STORY 14 25 transitions, as it’s unclear at present how many workers will remain jobless due to AI implementation. McKinsey consultants suggested that the growing technology-based economy will create new jobs that should offset the decline in occupations displaced by automation. The report notes that “up to 375 million workers, or 14 percent of the global workforce, may need to change occupations – and virtually all workers may need to adapt to work alongside machines in new ways.” Berger points out that AI is booming due to a combination of powerful, inexpensive telecom. The implementation of AI has the

computer technologies, advanced algorithms

ry quite interested in developing or using AI

potential to contribute to global economic

and impressive amounts of data on almost

for their products and applications. However,

growth in the next decade, according to a

any topic.

in many instances there is a bit of confu-

report by McKinsey. The consultancy firm’s

“The Romanian tech startups are in theo-

sion, as simpler machine learning processes added to a platform or product cannot qualify the product for the term AI. In terms of

models show that AI could incrementally add around USD 13 trillion to current global economic output by 2030. This means that

FACIAL RECOGNITION STARTUPS HAVE EYES ON THE PRIZE The two best-funded companies in the AI field are both from China and are focused on facial recognition technology. The firms have

expertise, I think like

the annual aver-

attracted both government and private fund-

in many other tech

age contribution to

ing. SenseTime has received USD 1.63 billion

ecosystems around

productivity growth

worth of equity funding, while Face++ got

the region, expertise

stands at 1.2 percent

USD 608 million, according to data provided

is still limited and

between now and

by cbinsights.com.

companies are ‘learn-

2030, notes Irving

ing by doing’,” Marius

Wladawsky-Berger,

Ghenea, partner at 3TS Capital, the private equity and venture capital firm, told BR. Ghenea suggested that AI could be a

research affiliate at MIT’s Sloan School of Management, in a blog post. Most of the contributions to GDP

The third biggest recipient of funding is California-based Zymergen, which uses machine learning to find alternatives to plastics and petroleum-based products. The startup has secured USD 574 million in funding up to now.

big help for many startups, but also for more

growth would come from the automation

developed businesses, particularly those

of labor and innovations in products and

ing have filed over 600 patent applications in

with large or increasing customer bases in

services. However, there will be serious

the US. One early-stage firm, Hover, is work-

Saas, e-commerce, media and publishing or

challenges generated with labor-market

ing on technology that allows users to take

Startups heavy on AI and machine learn-

pictures of their home using a smartphone camera, and uses image processing techniques based on machine learning to create a 3D model of the property. Meanwhile, Butterfly Network has developed a portable ultrasound priced at less than USD 2,000. The device will have integrated computer vision that can help interpret the images.


www.business-review.eu Business Review | September 2019

26 FINTECH

Banks and fintechs facing cooperation challenge on local market European deals and funding activity in the fintech sector reached USD 3.3 billion in the first half of 2019, with some of the most dynamic startups in the field moving to launch in Romania. Meanwhile, regulatory challenges and growing competition for conventional banks, which are investing heavily in their digital operations, might see fintechs and lenders focus on cooperation going forward. By Ovidiu Posirca

Romania does not have dedicated legislation for fintech

F

intechs have been growing rapidly

lenges to traditional banking products, says

from products,” Butucaru told BR. Some of

across the globe, providing niche

Ana Maria Butucaru, partner at professional

the largest banks operating in Romania have

services ranging from digital banking

services firm PwC Romania.

this year launched new apps designed to

to share trading, money transfers, mortgage lending, and insurance.

“The current competition is especially

boost payment by smart phone or other smart

on the rapidity and cost of services. In the

devices in a bid to become “cooler” in the

last two years, the conventional banks in

eyes of consumers that are also interested in

COMPETITION TO PARTNERSHIP REMAINS UNCLEAR

Romania have taken important steps into

the products and services of nimble fintechs.

By offering quick and convenient single

customer-friendly digital platforms, focusing

their small lending operations online so that

services, fintechs started off by posing chal-

on customer experience and moving away

customers can apply directly for loans, with-

digital banking by re-bundling services via

The banks are already moving some of


www.business-review.eu Business Review | September May 2016 2019

out going into a branch.

COVER FINTECH STORY 27 14 companies, but they still lack the banks’ dry

In the US, fintech funding rounds climbed

powder in terms of probably one of the most

to USD 5.1 billion in the second quarter of

Paysera was launched on the Romanian mar-

interesting financial products, loans and

2019, which was a fresh record, according to

ket, providing business account and money

similar products. Ideally, a strategic coopera-

CB Insights.

transfer services at lower fees. Representa-

tion between a fintech and a traditional bank

tives of the company say that the future will

could bring the best of both worlds to the

startups valued at more than USD 1 billion,

bring closer cooperation with the banking

customers, thus taking on market,” Ghenea

stood at 48. These companies have reached

system.

told BR.

a combined valuation of USD 187 billion,

This summer, Lithuania-based fintech

The number of fintech unicorns, meaning

according to CB Insights data. Europe has

“Nowadays, both fintech companies and banks are embracing innovation in order

nine fintech unicorns which together hold a

to be competitive and attractive to their

valuation of USD 26.1 billion.

customers. As fintech companies are small and flexible, at the moment, they seem to be

MISSING FINTECH LEGISLATION IN ROMANIA

more successful in implementing this. This results in their ability to offer more conve-

The European Commission, the execu-

nient, cheaper, faster and modern services.

tive arm of the European Union, is looking to

Inevitably, in order to be successful on the

maintain Europe’s competitive edge in the

long term, fintech companies need to work

fintech sector and has proposed sandboxes

with banks,” Paysera representatives told BR.

that can act as test areas for the regulation of

The cost of services, transparency and

emerging business models.

safety are some of the key drivers of the

There is also a proposal for a regulation on

adoption of fintech platforms for Romanian

European Crowdfunding Service Providers

consumers, suggested the PwC Romania

(ECSP) for Business, which is going through

partner.

the legislative process, according to Alina

Meanwhile, the head of the Romanian Banking Association (ARB), Sergiu Oprescu,

Radu, partner and head of the banking and While fintechs might struggle to scale up

finance practice at law firm NNDKP. There are

says that he is not “concerned” about the re-

their operations, banks have big customer

also other initiatives such as EU FinTech Lab,

lations between banks and fintechs because

databases, opening the path for collabora-

EU Blockchain and European Cloud which

these have already evolved into a partner-

tion, adds the PwC Romania representative.

aim to provide a clear regulatory framework

ship. What he is actually worried about is the

Lenders might create their own fintech com-

that protects consumers and investors, while

relations between TechFin players and banks.

panies or take over existing players.

also leaving room for startups to grow.

“TechFins are those large institutions such as Amazon, Google,

On the local market, implementing

The fintech sector in Europe

fintech businesses in the finan-

has recorded a flurry

and Alibaba that get into the

of funding for

cial sector is a challenge due

financial area by disrupting

emerging

to the uncertainty stem-

that segment, providing financial services for

ming from the regulatory

start-

framework.

ups.

a particular segment,

For

which go to the customer

in-

have dedicated legisla-

with a solution that might

stance,

tion for fintech. Gener-

not necessarily be a banking one,” Oprescu said in an interview for Wall-Street.ro. The ARB head suggested that the strong

“Romania does not

ally applicable legislation

Oaknorth

needs to be assessed to

raised EUR

determine how it applies to

783 million, N26

companies using fintech and the big

got EUR 612 million and Atom

regulation in the banking field might repre-

bank secured EUR 486m, according to data

question is whether or not a company using

sent a big entry barrier for TechFins.

from Dealroom, quoted by Sifted.eu.

technology-enabled innovation in financial

While local banks have invested in phone

“We are three/four years more advanced

services, depending on its business model,

payments and other digital instruments, they

than US companies in terms of product,

falls under the scope of regulated entities

are still lagging “significantly behind” disrup-

regulation, and size. US companies should

supervised by the National Bank of Romania

tive fintechs on more social-related features

learn from Europe,” said Nikolay Storonsky,

(BNR) or the Authority for Financial Supervi-

such as peer-to-peer functions, suggested

founder of neo-bank Revolut, which plans

sion (ASF),” says Radu. She adds that the law

Marius Ghenea, partner at 3TS Capital, the

to launch in the US. The startup already has

firm has started to receive more requests for

private equity and venture capital firm.

6 million users, out of whom more than

legal, regulatory and tax advice in the fintech

250,000 are in Romania.

field.

“This is a huge advantage for the fintech




www.business-review.eu Business Review | September 2019

30 INTERVIEW

‘An artist’s responsibility is to show people things they haven’t seen before’ Acclaimed British sculptor Alex Chinneck came to Romania with the exhibition “Unzip your mind”, exclusively for Qreator by IQOS. The symbolism of the zipper represents the distinctive characteristic of the project, as an object through which the artist highlights the surrealist cracks through which light enters, flooding the space and inviting the visitor to take part in an immersive and unexpected experience. He spoke to BR about the project, and how brands and artists balance their increasing collaborations. By Romanita Oprea

ABOUT ALEX CHINNECK Born in Bedford, and living and working in the UK, Alex Chinneck graduated from the Chelsea College of Art and is a member of the Royal Society of Sculptors Council. In his creative process, the international artist has as a starting point real-life experiences. He transforms materials and perceptions of them, seeking to change the world around us and test people’s perception of apparently familiar objects and materials.

busy mind and when I used to paint, everything calmed down, I suppose, and I just became lost in the work and in the process. I probably wasn’t the greatest painter, nor a particularly good craftsman, but I fell in love with the process. It wasn’t so much that I loved what I was creating, but that I loved the process of creating it. It wasn’t about a career path, I was just following my instincts. I began to be very interested in the idea of making contemporary art and making a genuinely contemporary contribution to art. And I was conscious of the fact that everything that I painted had been painted before, or something incredibly similar had. So, I ran Alex Chinneck -unzipping minds and changing structures and facades from Milan to Bucharest

out of this this energy that I had something that would distinguish me in the art world, so it began to evolve into sculpture. I’ve always loved making things and crafts-

What does creativity represent for you?

get a little moment of magic. I think that is

For me, it’s presenting the world around us

one of the elements of creativity: a wonderful

manship and materials, particularly wood,

in a new way. Or re-imagining the world in

opportunity for us and for the people who see

and it just evolved into a kind of sculpture

which we exist. In my work, we are trying to

it. And it’s a positive thing.

practice where I would have ideas that were not so easy to create and I couldn’t necessar-

make the familiar, the everyday world, ex-

ily create them. So, from a very young age,

taking familiar materials and surfaces, dif-

When did you first realize you wanted to be an artist?

ferent structures and trying to intertwine an

There wasn’t a clear moment when I said:

create work. And I found it very liberating:

element and to see. And in doing so I myself

I want to be an artist! I just, kind of, slowly,

that I would conceive an idea and through

often kind of escape from the everyday world,

fell in love with the process. And I think that

collaboration and partnerships with others we

but those who visit it and see it ideally enjoy

every artist begins to paint with a brush and

would collectively produce it. It just allowed

a momentary escape from everyday life and

a pencil, this is how you begin. I have quite a

the work to evolve in directions and territo-

traordinary. That’s what surrealism is, I think,

19, I started working with other people to


TURNING OVER A NEW LEAF: MIXED REAL ESTATE PROJECTS GET GARDENS

WHERE ROMANIA TALKS BUSINESS September, 2019 / Volume 23, Issue 9

www.business-review.eu

8

CRISIS COMING: EXPERTS WARN OF CRUNCH IN 2020-2021

22

BANKS AND FINTECHS FACING COOPERATION CHALLENGE IN ROMANIA

26

5G: LOCAL OPERATORS GEARING UP FOR COMMERCIAL LAUNCH IN 2020

34

IT TAKES TWO: GLOBAL GIANTS JOIN FORCES



www.business-review.eu May 2016 2019 Business Review | September

COVER INTERVIEW STORY 31 14

So how did it work? Did you receive a brief or was it the other way around? It was more than a brief. It was a philosophy: to do something that would change perspectives. And that is beautifully aligned with what we want to create, to try to present the world we know in a new way and familiar materials and structures in a different light. We went into brand integration nervously, doing it in a way that wasn’t sensitive to my work, and it worked brilliantly. Very, very good partnership and commissioning. And we continue to work with them.

The Zipper - the central piece in Bucharest’s exhibition

And afterwards did they ask you to do projects for them in other countries? Following that project, which was a real

ries that I believed people gained something

was allowed to evolve in multi-disciplinary

success – it had 220,000 visitors in six days

from being part of, and then it just evolved in

directions, rather than just art. And it was

and was well received and shared around the

ambition and scale and we now have a prac-

allowed to be more about the idea than me

world – we generated the photographic series

tice that is quite hard to replicate. Because of

being the one executing it. Now it’s impos-

and a series of sculptures, objects, artifacts

the ambition and the magnitude of the work

sible, because of the size and the multitude

from it, and different Qreator Embassies

and the huge teams involved. I kind of enjoy

of projects that we work on around the world,

around the world wanted to share them.

where it’s got to in that respect.

but, even then, I don’t want an idea not to happen just because I didn’t have the techni-

What about Romania?

But when you started collaborative projects, wasn’t it hard to work with all those people? Wasn’t it a competition from time to time or did you meet people that had a completely different opinion or vision than you? How could you turn it into something cohesive?

cal capacity to produce it. But, even if there

When we came here, I thought it would be

are hundreds of people involved, I am deeply

nice to create something that would speak

involved in any decision.

specifically to this place and location. And

It’s difficult when you are collaborating

even if it’s not a huge architectural façade,

and producing work and it’s not just you. You

that is where the stone Unzip It block in the

can easily lose control and not make deci-

entrance comes in. Because that entrance is

sions or let decisions be made for you, so it’s

lovely, it has this kind of curving stone and it

I have always been the art director, so it was

an art form in itself. It takes practice, but I

felt nice to continue that language and pur-

always my idea, vision and projects, and I was

think I am getting better at it.

pose, but, obviously, make something that is

managing them. So it was not about working

Collaboration is an art form. Commission-

with other artists, because I find that kind of

ing is an art form. I don’t live by myself, I am

collaboration difficult (not because I don’t

surrounded by people and I want to collabo-

Unzip It floor, where we unzip the floor and

love other artists and other artists’ work,

rate with people. This relationship and collab-

the light came out of it and every time that

because I do), but it was just the two creative

oration continues here and in other countries

happened the color changed and a different

territories were too close. I found that my

around the world, which is very exciting. I

sound came out. We composed music espe-

work had flourished into new territories and

have fantastic partners.

cially for the piece. So, we did the same here:

an extension of the Unzip It family. One piece that we created in Milan was the

we created a low light and the color would

directions and I became more ambitious and,

Your first collaboration with IQos was at Milan Design Week?

change and the light in the stone and the

but collaborating with people from outside the art world. From that perspective, there

Yes. We were invited by IQos to create a piece

environment, hopefully.

was never real tension, it just became about:

for Milan, which was a phenomenal interna-

this is the vision, how do we deliver it and

tional platform, but it was new territory for

how do we work together to do that? And that

us – working with a brand. We were under-

is what I enjoyed.

standably anxious, as they were about us as

But this is what you do everywhere, isn’t it (incorporating the piece in the place and its specifics)?

naturally, started to develop a unique voice,

For instance, at art school, I would go to

sound would change as well and create a nice

well, because the partnership has to be right.

Yes, mainly the big pieces, like the one in

the local universities in London that special-

But we were immediately reassured by the

the entrance here. Because we are creating

ized in science and robotics or computer cod-

creative freedom we would get for our show.

these illusions and they have to speak the

ing and programming. So, already, the work

It was something genuine, nothing forced.

same language as the location, otherwise


www.business-review.eu Business Review | September 2019

32 INTERVIEW

they are not believable. In Milan it was based on a Milanese façade, we basically copied a couple of buildings in Milan, we built them, the whole façade is artificial. Everything has to be contextually responsive. Public art has to do that. Gallery-based artists don’t need to do that, because they have a blank canvas to work with, perfect for doing any artwork. But this is not the way we work. Our work has to have a good communication with the surroundings and the people. And I think all public art should do that. Because if it doesn’t belong there it feels like an intruder. And, ultimately, it will not succeed. We are doing a project in Mumbai at the moment. It is very

Putting everything into context, at Qreator

important to us that it’s made by the people of Mumbai, not for the people of Mumbai. We

ing artists and the art that they produce. If

I can imagine a lot of artists not being able to

have done that quite often around the world.

they weren’t right in the first place, the brand

do it or not wanting to do it.

It has to be born and belong to the location

shouldn’t have invited them. It’s about giving

rather than kind of added to it. We try to do

a platform and sharing the philosophy. And if

that as much as possible.

those two are right and aligned, trusting the artist and trying not to shake the outcome,

Are brands more interested in collaborating with artists and entering the art world? Is it a trend or not?

What is your goal for the exhibition in Bucharest and what do you expect from the people?

it’s the way to do it. Because the approach is

Yes. Not necessarily entering the art world,

not this way; they should have created their

more remaining in the real world. Because

own work in the first place. I think it’s about

that is the place where they exist. I think that

It’s a nice opportunity to broaden the impact

having confidence. It’s about the artist feeling

brands increasingly seek ways of reaching

of the Milan project in the region. We’re also

confident and comfortable in the relation-

more people and creating unique experiences,

showing photographs of previous work.

ship. But the brand needs to have confidence

messages and distinguishing themselves from

We’ve produced a lot of work in the past five

that the art and the message attached to it

others. And, in many ways, I think this is art

years and is very nice to share that and I hope

is enough and will enjoy the kind of reach,

in a nutshell. An artist’s responsibility is to

that even if we don’t have a huge architec-

awareness, fruitfulness and excitement

create new things, in new ways, and show

tural work outside, collectively it would be

that allow the project to communicate and

people things they haven’t seen before. And I

experienced in the esthetics and the visu-

resonate with multiple people. I think that

think that neatly aligns with how brands want

als that we share here. The entrance, in the

sometimes there is a lack of confidence

to operate today. We live in a very digital, fast-

interior space, I hope is quite beautiful and

where brands choose particular locations or

paced world, in an incredibly visual world. It’s

calming. The changing sound, light and colors

kind of force the infiltration of product and

about immediate impact and esthetics and I

are pieces of the process – in contrast with the

brand into the work. And I think that the

think an artist can offer that.

very brutal stone, the materiality of that.

public is wary of that, conscious of the over-

There are huge benefits for brands, and

integration of brand and product. And they

for artists too. It’s easy for very success-

Have you worked with other brands besides IQos?

are conscious of advertising and brands need

ful, celebrated artists to be critical of brand

to be more confident and say that it is not

partnerships, but that is because they don’t

Not on this scale.

about forcing those messages on potential

need them, they have more opportunities

consumers, it’s about offering a very exciting

that they can ever manage. The reality is that

How do you see the perfect collaboration between an artist and a brand? When does the brand have to get involved in the process, or doesn’t it?

and stimulating experience to people who

there are far more artists, far more creative

want to share and talk about it. And, in that

practitioners that there are opportunities and

process, people will discover the project and

platforms. So, I think that that these ever-

the brand rather than it being a kind of force

increasing brand partnerships really allow

I think it’s a two-way dialogue. The artist has

feeding. Because that will ultimately fail. It’s

and encourage artists to create work that

to understand that there is a partnership and

a delicate combination. The artist has to be

otherwise wouldn’t exist, and represent very

that they potentially have to tune the work or

very confident and strong, be able to say no

exciting and ambitious extensions to their

tune the way they communicate the work, to

to the brand. And the brand needs to be able

portfolio and body of work. Providing that it is

align with the partner’s messaging. I think the

to hear no and understand that. It’s about

not a compromise, something forced. And it is

partner has to give the artist as much creative

working together, not ignoring important

the brand’s responsibility not to force them in

freedom as possible. I think it is about trust-

facts. It’s a difficult relationship to manage.

that direction. I think it’s a win-win.



www.business-review.eu Business Review | September 2019

34 TECH

5G: Local operators gearing up for commercial launch in 2020 5G is just around the corner. In Romania, the super-fast broadband technology has already been launched by some mobile communication operators on frequencies in use today, but the auction for new frequency spectrum, which will support 5G connections, will take place in the coming months. In the run-up to that, BR surveys the latest developments in 5G, including phones with 5G capabilities. By Aurel Dragan The first 5G in Switzerland was launched in April by Swisscom, while the second-largest operator Sunrise has already reached over 200 cities. Sunrise ran an ultrafast connection test in late 2017, at 3.28 Gbps and launched the first standardized 5G network at a ski resort in 2018. Vodafone Spain was the first operator to launch 5G in the country on June 15, and it is now available in several cities. The connection speed at launch was up to 1 Gbps, which can be reached on a 4.5+ connection, but it will increase to 2 Gbps by the end of this year. Finland claimed to have the first 5G commercial network in the world after operator Samsung Galaxy S10 5G, the first 5G phone from the Koreean producer

5

Elisa Oyi launched it in June 2018. Telia, another Finnish mobile operator, launched 5G in December, 2018, while DNA followed

G networks are in use today, on all

operator O2 is expected to launch 5G cover-

suit at the beginning of this year. However, as

continents. The commercial launch

age, and CityFibre and Arqiva are holding

DNA officials said, even with the introduction

will take place in 2020 in most coun-

trials in London.

of 5G, the 4G network will remain the primary

tries, but some are ahead of the game. In

UK users have official access to many 5G

network used by most people.

phones. Apart from the Samsung Galaxy S10

All over the world 5G is being launched,

tion in May, 2019, in five cities at first and

5G, EE was the first in the world to offer the

mostly in tests, but the real start will come in

more and more places since. The first 5G was

OnePlus 7 Pro5G. British consumers can also

2020. Ericsson predicts that 5G subscriptions

launched by the largest mobile operator in

use the OPPO Reno 5g, LG V50 ThinQ 5G, HTC

will reach 1.9 billion in 2024, when cover-

the country, EE, and Vodafone UK was not far

5g Hub, Huawei Mate 20 X 5G and Xiaomi Mi

age should extend to 65 percent of world’s

behind, joining the party in July. This year,

MIX 3 5G.

population.

Germany, trial installations began in 2018 and while commercial launch is expected in 2020, with rollout until 2025, Deutsche Telekom has already launched 5G in more than five major cities. According to the mobile operator’s plans, by 2020 over 20 cities will have 5G coverage. Vodafone Germany opened 20 base stations in July and expects to have 50 by autumn. The UK saw the first 5G connec-


www.business-review.eu Business Review | September May 2016 2019

COVER STORY TECH 35 14

The phone models available officially in

COMMERCIAL LAUNCH IN ROMANIA

who will have access to mobile data services

All three local operators – Vodafone, Digi and

at 5G speeds and low latency through first

Romania are the Samsung Galaxy S10 5G,

Orange – have launched 5G connections in one

base stations. This is another important step

Huawei Mate 20 X 5G and Xiaomi Mi MIX 3

form or another. Vodafone turned on the first

by our company towards the convergent

5G. Samsung recently launched Galaxy Note

5G connection in its Supernet 5G network and

future of communications, following the test

10, but neither of the two models has 5G ca-

later expanded the coverage to Cluj-Napoca

of the 5G prototype platform a year ago. The

pabilities. Apple will launch its latest models

and Mamaia, when it also launched the first

project materialized after mixed teams of

in September, but there is no info about a 5G

5G subscriptions in the country. Red Infinity

specialists and partners worked on it – all of

handset. However, 2020 will bring a much

17 and Red Infinity 25 are the first 5G-ready

it in order to provide customers with the best

bigger offer of 5G phones, while prices (which

subscriptions providing unlimited data traffic

mobile communications services as soon as

now are around EUR 1,000 per handset) should decrease.

within Supernet

possible at the

5G, the first

most affordable

5G network in

market prices,”

5G TENDER EXPECTED IMMINENTLY

Romania.

said Valentin

The tender for the new frequency spectrum,

Popoviciu, vice-

meant for 5G use, will be held in the coming

proud to be

president of the

months and the winners should be known

amongst a hand-

DIGI adminis-

by December, 2019. The Romanian authori-

ful of operators

tration board |

ties expect to raise EUR 580 million from 5G

globally and the

RCS & RDS.

licensing, a much lower sum than the first

“We are very

first in Roma-

Orange

nia that have

tested 5G con-

launched 5G

nections in

COM, the communications authority, rights to

services and a

real use at the

use the frequency spectrum in the 700 MHz

commercial of-

Untold festival,

and 1500 MHz bands, which has no allocation

fer. This speaks

and conducted

so far, will run for 15 years, from 1 January

to our commit-

several trans-

2021 for the 700 MHz band and 1 January

ment to being at

missions in VR

2020 for the 1500 MHz band.

the forefront of

360 with the

innovation not

Samsung Galaxy

spectrum to be auctioned in the 800 MHz

only locally, but

S10 5G. “Our

and 2600 MHz bands for 10 years, with op-

also globally,

priorities are

tions to be considered for aligning the expiry

and making sure

closely linked

date with the rights existing in these bands

that Romanian

to the needs

valid till April 5, 2029. In the 800 MHz band,

users get the op-

of custom-

Telekom Romania Mobile Communications,

portunity to ex-

ers, especially

Orange and Vodafone have usage rights valid

perience leading

their desire to

until April 5, 2029. Also in the 2600 MHz

technologies.

benefit from

band, Telekom Romania Mobile Communica-

We are commit-

uninterrupted

tions, Orange, Vodafone and RCS & RDS have

ted to continu-

connectivity,

the rights to use the frequencies until April

ing our mission

but also with

5, 2029.

and long-term

the best net-

investments in

work services.

memorandum signed by the USA and Roma-

state-of-the-art technologies in order to sup-

All this is supported by annual investments

nia in Washington that should include “anti-

port and develop the digital Romanian society

of over EUR 100 million in the development

Huawei” filters in the tender. The memoran-

in the era of speed,” said Mostafa El Beltagy,

of the network. Now, together with technol-

dum states that three major filters should be

director customer business unit, Vodafone

ogy partners such as Samsung, but especially

applied at its 5G auction: the supplier should

Romania.

with customers, we aim to demonstrate the

not be under another government’s control,

performance of the 5G network. 5G repre-

and should have transparency in the share-

first 5G broadcasting stations in June and

sents an important technological leap, which

holders structure and transparent corporate

started the development of the future Digi

promises a new level of communications, and

practices. If applied, it may rule out the use

Mobile 5G Smart. “Romania is now on the

is about to change the world of services of-

of Huawei equipment for 5G networks since

world map of state-of-the-art 5G technology.

fered today,” said Emmanuel Chautard, chief

the company is not considered transparent

This is good news for Digi Mobil customers,

technology officer, Orange Romania.

regarding its shareholder structure.

Digi Communications also launched its

estimates of EUR 1 billion. According to the latest papers from AN-

ANCOM intends to grant licenses for the

The tender may be changed by the latest


www.business-review.eu Business Review | September 2019

36 PARTNER CONTENT

The Online Is Too Noisy – Show Consumers the Way to Your Brand How is Product Lead helping brands open a meaningful dialogue with a consumer that suffers from digital attention deficit disorder? In short, we help the brand to level up their game in building customer journeys. Our take on a healthy consumer-company dialogue is an authentic interaction where brands speak consumers’ language. We found that this is possible by working with the content users create for social media. We bring our clients up to speed with the use of reports that analyze their online presence to understand their place in the industry. Next, Product Lead tracks down content that clients post online also known as UGC (user-generated content). It has been proven that UGC has a much higher conversion rate Alexander Stoica-Marcu, Chief Exponential Officer at Product Lead

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38 GEORGE ENESCU FESTIVAL

www.business-review.eu Business Review | September 2019

New notes: Music of the XXI century Under the tagline “the world in harmony,” an important strand of this year’s Enescu Festival is Music of the XXI century, which presents contemporary artists who continue to create classical music. Who’s who and what’s worth mentioning? Business Review talked tunes with Mihai Constantinescu, the festival director.

Photo: Alex Damian

By Oana Vasiliu

Composer Sabina Ulubeanu’s #justacomposer performance at George Enescu Festival

NEW SOUNDS OF THE MODERN WORLD What’s the deal with contemporary classical music? Some say it’s only noise. Some say it’s devoid of melody and appeal. Some say it’s a squeaky gate, as Tom Service from The Guardian’s Contemporary Classical Music series notes. But in reality, it’s about not being afraid to explore a whole new world of sounds. “A Festival like Enescu may be subtitled ‘all about classical music’ as we aim to reach as many music lovers as possible. In this context the picture is not complete without today’s compositions. (…) To see and connect with today’s trends in music means to try to understand the today’s world.” So says

“THE ENESCU FESTIVAL PRESENTS 84 CLASSICAL MUSIC CONCERTS, FOUR OR FIVE PER DAY OVER 23 DAYS, FEATURING TOP GLOBAL ARTISTS. THE CONTENT IS DIVIDED INTO FOUR MAIN SECTIONS, COMBINING DIFFERENT EPOCHS AND COMPOSITION STYLES, FROM OLD PRE-CLASSICAL MUSIC, EVEN PLAYED ON OLD INSTRUMENTS, TO THE MOST RECENT CREATIONS OF THE MOST REMARKABLE COMPOSERS,” MIHAI CONSTANTINESCU, ENESCU FESTIVAL DIRECTOR


www.business-review.eu Business Review | September 2019

GEORGE ENESCU FESTIVAL 39

maestro Vladimir Jurowski, artistic director

so interesting to see on the time scale how

of the festival, which was founded with this

different composition styles developed one

purpose of encouraging connection with the

from another. Today we see somehow more

latest trends and also forging dialogue, adds

styles coexisting and this makes the discov-

Constantinescu.

ery of composers more interesting,” says the

Moreover, the International Forum of

director.

Composers event, part of the festival, helps chart today’s creative musical environment. But can we define contemporary classical

CLICHÉS AND MYTHS Contemporary music has been described as

music? According to Constantinescu, ideas

everything from special and interesting to

about this are a bit mixed up. The contem-

arid and too experimental.

porary period is generally defined as starting

“We will see in Bucharest 40 composers

from the third decade of the 20th century.

who take such different approaches to com-

This makes Stravinsky and Shostakovich

positions – from harmonic dreams, to elec-

contemporary although they now seem more

tronic music, from experiments with sounds

post-modernist. That is why Music of the XXI

to stories told by instruments. That is actu-

century is perhaps better at explaining what

ally the idea – to have in 23 days a glimpse of

is contemporary. “The question however trig-

how music is today and how musicians are

gers another response – as we usually define

depicting the times,” adds Constantinescu.

musical styles according to time. And it is

We have a new #classicisfantastic PENDERECKI VIOLIN CONCERTO NO. 2, METAMORPHOSEN (SEPT 22, 13.00, RADIO HALL) VOCALCONSORT BERLIN WITH SVEN HELBIG (SEPT 22, 11.00, AUDITORIUM HALL, NATIONAL MUSEUM OF ARTS) Ralf Sochaczewsky (conductor), Sven Helbig (composer, electronics, video), Carlo Grippa (sound engineer), Radio Romania Chamber Orchestra Sven Helbig “I Eat the Sun and Drink the Rain” – 10 pieces for choir and live electronics

NICOLA PIOVANI (20 SEPT, 15.00, RADIO HALL) Francesco Tristano with Sibiu Philharmonic Orchestra (Sept 15, 13.00, Radio Hall) Cristian Lupes (conductor), Dan Dediu - “Elegia minacciosa” for orchestra, Francesco Tristano - Island Nation Free Piano Concerto, Jorg Widmann (Violin Concerto), Michael Barenboim (Violin), Constantin Basica (Concerto for conductor and orchestra, premiere)

FRED POPOVICI STRING QUARTET (SEPT 12, 15.00, GEORGE ENESCU HALL, NATIONAL UNIVERSITY OF MUSIC) – world premiere SABINA ULUBEANU (1 SEPT, 13.00, AUDITORIUM HALL, NATIONAL MUSEUM OF ARTS) #justacomposer” 2019 – premiere

The World in Harmony 84 performances 23 days 3,000 international artists 1,000 Romanian artists 11 host cities nationwide: Ploiesti, Targoviste, Barlad, Bacau, Sibiu, Targu Mures, Piatra Neamt, Iasi, Cluj, Satu Mare, Timisoara. 6 host cities worldwide: Berlin, Florence, Liege, Chisinau, Montreal, Toronto Festival first-timers: Royal Philharmonic Orchestra of Liege, National Orchestra of Lille, La Cetra d ‘Orfeo, Polish National Orchestra, Pelleas Orchestra, New Europe Ensemble, Cameristi della Scala, Ensemble Linea, La Grand Chapelle de Madrid, La Barocca and Les Talens Lyriques. A musical “tournament”: Third S ymphony performed by two different orchestras: the Maggio Musicale Fiorentino Orchestra and the Berlin Broadcasting Orchestra. Opera in concert: 14 operatic performances, some accompanied by new multimedia creations Mozart Week in Residence The presence of over 40 contemporary composers in the 21st Century Music Section Around 260 tons of equipment and instruments, transported by 13 trucks, from all over Europe Over 8,500 accommodation nights, with over 3,600 people staying in 10 hotels in the central area 4,000 international flights Over 40 aircraft 20 charters – 3 orchestras fly back on the same day 13 limousines for soloists and conductors 12 orchestras with over 100 people 15,000 hospitality packages An estimated 30,000 km traveled within the festival to collect and accompany artists, transport etc. 1,380 m of fresh flowers during the whole festival


www.business-review.eu Business Review | September 2019

40 GEORGE ENESCU FESTIVAL

The wonder of Wolfgang: Mozart Week in Residence

In harmony with the city via phone

A premiere for this year’s Enescu festival is Mozart Week in Residence,

An application, available for free on Google Play and AppStore,

a program brought from Salzburg and curated by acclaimed Mexican

outlines the nearest festival events on a map of Bucharest, but also

tenor Rolando Villazón. Since 2017 he has been artistic director of the

the unique ways music fans can enjoy the experience offered by the

Salzburg Mozart Week Festival, a yearly event taking place around the

festival.

composer’s birthday, 27 January. Mozart Week in Residence @ Festivalul George Enescu will include opera events (including unconventional mime and recitals) and an exhibition of items related to Mozart’s life (such as his violin and letters

The Enescu Experience app includes both the over one hundred concerts that are part of the festival, as well as several hundred other events in unconventional spaces, outdoors, museums and so on. By enabling phone location, each user will receive notifications

to his father), which will aim to cast a fresh light on both the music

about nearby events and can find routes to different points on the

and the personality of one of the greatest classical figures.

map.

“The more you enter Mozart’s musical world, the more you get

The map uses Google Maps, and by using the festival calendar in

surprised every single time, even with pieces that you already know.

the app, fans can choose to view the day’s events on the map. Filters

As a singer, coming back to Mozart’s arias at different stages in your

can also enable the user to see only the events in the festival itself or

life, you are in awe of the purity of the musical line, the dramatic

the side happenings throughout Bucharest.

ingredients that every single role has. And the more you continue to

“The festival belongs to us all, thanks to Enescu’s genius. Even if

explore his entire repertoire, the symphonic pieces, the sacred music,

the rooms have a physical limitation, the joy of music is unassuming.

the chamber music, etc, new doors open in your own interpretation

Our partners developed this idea. I was especially pleased to see what

of this music. On another level, the more you read about his life (par-

the map of Bucharest looks like in the colors of the festival, with vari-

ticularly from that great source of information which are his letters),

ous events through which, together with our partners, we have tried

the more you fall for him… It’s like a kaleidoscope, the more you get

to bring this joy to the widest audience. This year’s edition is the most

into it, the more colors and shapes you will see,” said Villazon in an

extensive so far, but only after you see the map in the application will

interview for the official Enescu Festival website.

you realize what this means,” said Mihai Constantinescu, executive

The curatorial concept of the festival’s Mozart Week is detailed by the Mexican tenor as follows: “The hope that people will experience

director of the George Enescu International Festival. Festival concerts, live broadcasts and recordings in public spaces,

all these wonderful things that I mentioned about him, not just some

alternative concerts, guided tours throughout the city and Romanian

of his wonderful compositions but also something of his spirit, the

artists’ workshops, film screenings, exhibitions, after parties, tastings

joyous, dancing, serious, enlightened man he was. We’ll go through

and book launches are all marked on a map of possible experiences

some of the letters that he wrote to his father and I think they high-

and through proximity notifications, music lovers and other curious

light quite accurately the special relationship they had. To sum up,

people will be able to see which events are the closest and available.

what we’ll bring to the Enescu Festival is a bit of what we do in Mozart

The application includes brief details about each event and links for

Week in Salzburg,” concludes the artist.

booking or for more detailed info.


www.business-review.eu Business Review | September 2019

Oedipe

GEORGE ENESCU FESTIVAL 41

Guided tours of Enescu’s world

Guided tours will take place following the artist’s footsteps through the capital. They will run from September 6 to 22, at the end of the week, free of charge. “The whole history of Bucharest is intimately linked to music, and the traces of Enescu through the city are still noticeable in stories, in places where he stayed, composed, dreamed, loved. There are stories that we can recover and whose joy we can share with the help of these guided tours, both with the audience of the festival, as well as with tourists and those curious to know more about the culture of the place. We were pleased to be able to include this initiative in the series of programs associated with the Enescu Festival, in line with the objective we have this year, to expand the connection between As author Noel Malcolm describes it, Oedipe is one of the least performed masterpieces of the 20th century. Despite George Enescu’s

the festival and the city,” said Constantinescu. There will be two tours: In the footsteps of Enescu, featuring

self-imposed rules for composing opera (it should not drag on; the

buildings and places frequented in the past by the composer and

public should not become bored; the listener should understand the

other Romanian musicians; and Bucharest’s Hidden Gems, which will

text) and the initially warm reception of musicians and critics, the

present lesser known musical venues. Tours are free of charge, with

opera (which does not feature any love duets) was not a hit with the

Romanian and English guides, sponsored by Raiffeisen Bank.

general public when it debuted in Paris in March 1936. The National

“We designed these routes to reveal the city with the thought of

Opera Bucharest has managed to again stage Enescu’s only opera, this

music and the desire to let curious people discover the subtle vibra-

year’s performance being directed by Valentina Carrasco under the

tion of Bucharest, with its dose of the beautiful, unique, eclectic,

wand of Tiberiu Soare.

always subtle allied with music. We will guide our guests on tours

The story follows Edmond Fleg’s richly textured libretto, draw-

that will bring to the surface stories about the music halls of the time,

ing on Sophocles’ Oedipus at Colonus as well as Oedipus Tyrannus.

about Enescu’s love for Princess Cantacuzino, about his relationship

It presents the whole life of the tragic hero, from the celebration of

with the Royal House, about the architects with whom he collabo-

his birth in Thebes to his death in a grove near Athens, where he was

rated closely, but also about being a gourmet. We will discover the

led by his daughter Antigone. In their redemptive final act, Fleg and

importance of church music, but also the music of mahogany, we

Enescu present a modern version of the myth in which this archetypal

will discover the discreet charm and nonsense that elude the casual

representative of humanity rails against the injustice of fate, protest-

glance in Gradina Icoanei, Batistei, Armeneasca. These routes are, in

ing his innocence of parricide and incest on the grounds that he never

fact, a unique form of celebrating music during the wonderful event

intended to commit either crime.

that is the Enescu Festival!” added Anita Sterea, president of the New

Saturday September 21, 19.00 at The National Opera Bucharest.

Cooltural Association Cares! and project coordinator.


www.business-review.eu Business Review | September 2019

42 PARTNER CONTENT

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20 years of București Mall – Vitan. The first 20 years.



www.business-review.eu Business Review | September 2019

44 EXPAT EYE

Don’t turn around: brave new Romania mustn’t backslide With her home country mired in self-inflicted chaos, BR’s resident British expat reflects on the progress being made in Romania and worries about recent reversals. By Debbie Stowe of grass. Bucharest’s lively – and constantly busy – civil society has naturally risen up, to protect the century-old gardens. A little further up the river, Glendale Cinema – a charming, independently-run movie theater open for more than two decades – closed its doors in May, the premises having effectively been seized by the authorities of Sector 1 under a new law, despite almost 2,500 fans signing a petition against the closure. Describing itself as a cinema and art café, your ticket included tea, and viewers were given an empty paper bag which could

W

be filled and refilled from the popcorn machine in a little room off the main cinema hall.

hile I was packing for my move

institutions, more functional infrastructure,

It was wonderfully quirky and great value – a

to Romania in 2002, my mum

more diverse retail, gastronomic and cultural

change from the identikit, comfortable-but-

brought me two cans of Heinz

scenes, more developed public services and

soulless multiplexes that now proliferate.

soup – in case I couldn’t “find anything to eat

so on. But unlike the UK, whose “glory days”

there”. Although I was touched by the con-

were long gone (again, even before Brexit),

der in Caracal, the Colectiv nightclub fire,

cerned maternal gesture, I declined the offer,

Romania seemed to be looking forward to its

watered-down disinfectant in hospitals – the

on the basis that as Romania had a population

best times.

slight disfigurement of a park and closure of a

Amid Romania’s recent scandals – mur-

of about 20 million, presumably those people

Of course, with my Parliament prorogued,

must be eating something and therefore food

a scoundrel as my PM and my country on the

die. But they are examples of how authori-

was available.

brink, I’m more grateful than ever to have

ties can abusively, and for arbitrary reasons,

found a home in Bucharest. But even here,

make our lives a little duller, a little poorer, a

Europe in the 1970s, and seen various condi-

there is evidence of backsliding amid all the

little less colorful and interesting. Since I first

tions. They’d been followed in Russia, passed

recent encouraging steps forward.

stepped off a plane in Bucharest, soupless,

My parents had travelled a lot in Eastern

through police states, been offered cash for

The civil unrest in Turkey in 2013 erupted

cinema are not the most serious. Nobody will

17 years ago, I would say 90 percent of the

their clothes, as such items were not available

over the urban development plan for Istan-

changes I’ve seen have been positive. More

locally – but always been fortunate enough to

bul’s Taksim Gezi Park. I understand it: parks,

varied gastronomic options, better service,

return to the liberty, prosperity and plenty of

the places where we play with our children,

greater efficiency, the smoking ban, EU

the UK. Oppressive political regimes, threats

stroll with our lovers, walk our dogs, catch

integration, stronger anti-corruption efforts,

to democracy, shortages of basic goods, dif-

up with friends over a drink, jog, cycle, play

faster internet – all have made life here easier

ficulty in going about one’s daily business;

football, breathe fresh air, are vital for our

and more enjoyable. True, prices have shot

it reads like a list of bygone predicaments,

psyches, especially in places where few have

up – an inevitable consequence of opening

or afflictions facing countries deep in the

their own gardens, like Bucharest.

up Western labor markets. And some of the

developing world – not a characterization of

I’m glad that couldn’t happen to my local

quirkiness has been lost – I can no longer

today’s United Kingdom. Or rather, Disunited

park, I remember thinking, confident that

laugh about my local shop being called

Kingdom. But here we are. Even before the

Cismigiu was too historical, too central, too

“Angst” or a wedding dress boutique being

Brexit humiliation, the main thing I loved

close to City Hall to fall under the developer’s

called “Mistake”. But, overall, Romania is on

about Romania was that the country was

bulldozer. Wrong. Now EUR 10 million of

the up. I hope it doesn’t reverse course back

moving in the right direction. Yes, the UK was

“improvements” are planned, which appar-

to the bad old days, like my home country is

objectively the “better” society – stronger

ently include concreting over large swathes

inexplicably trying to do.


www.business-review.eu Business Review | September 2019

RESTAURANT REVIEW 45

Great food, zero ambience >>> Hotel Cismigiu, 36 Regina Elisabeta <<<

F

or 20 years, I watched in dismay as

ditional starter. She correctly anticipated

irony, this House is opposite the temple of

the Hotel decayed and crumbled

that the foie gras would be mean razor thin

doom, trash, fat slug, obesity, namely the

before my eyes due to a title dis-

slices of terrine which would not spoil her

McDonald’s on Elisabeta St. where you will

pute with the Sector I mayor and private

appetite, and she was correct. So was the

risk your life and your expanding waist-

interests. Thankfully, the latter won a few

dish, which was plated traditionally with

band with their vile hamburger. It’s a no-

years ago, and the hotel was transformed

sweet jam and a mean slice of fig - a slice, not

brainer to go to this House and order the

into something wonderful. So let’s go and

the whole fig. Yet she loved it.

same. And now to my main. I ordered the

check out their flagship restaurant on the 6th floor. The décor is terrible.

For my starter, I ordered a comedy circus of errors described as

seafood plateau at 70 lei. Oh, it was good. I was angry at the cheap trick of including crayfish,

‘five French

crawfish or what-

It is all pink: the

ever you want

walls, the ceil-

to call it. In

ing, and the

Australia it

furniture. All pink! Dam-

is a giant,

mit, it is so

and it’s

gay that I

deemed

expected

to be a

the poofy

small lob-

male fairy

ster, but in Europe it is

from the

an American

top of the

invader of our

Christmas tree

waterways, and

to come dancing by my table resplendent in his tutu. But Blondie drained off my

chees-

a pain in the ass.

es’ with 50

Chefs love it because

grams at 10 lei. Not so. You

it fills your plate with utterly

surplus testosterone and calmed me down,

could select ONE of five cheeses. So I was

useless, inedible long stony claws, hiding

hence away to the menu. I cannot find a

offered Gorgonzola. But the waiter then

the fact that the only thing you can eat

single fault with each choice of dish offered

asked me ‘which Gorgonzola?’ The poor chap

is the tiny ‘ass’ which is the size of your

on the menu, but the reality was not as

labored under the traditional Romanian illu-

fingernail. Thank God It was accompanied

described.

sion that Gorgonzola was the generic name

by three giant king prawns. But the lazy

for all blue cheese. After I held him down

House left the whole thing on the plate.

asparagus’ at 27 lei. What the menu did not

and tortured him with hot irons he confessed

That means legs, head, shell - all of which

disclose was that the risotto was laced with

that the Gorgonzola was actually Roquefort,

I had to peel off myself. Yes, the food was

beetroot, and there was no discernable

which came to me plated with a sprinkling

delightful, but my fingers were dripping in

taste of truffle whatsoever. The Chef should

of pomegranate seeds, olives and grapes. It

garlic oil and were only relieved at the END

have shaved it in to complete the dish, but

could not get better!

of the meal by a most welcome fingerbowl.

She ordered a ‘risotto with truffles and

there was nothing. Perhaps he cheated by

So away to mains. Blondie chose a simple

Go there. It is really acceptable. Check

using imitation truffle oil. Nonetheless,

hamburger at 40 lei, which was anything

their menu online. They deserve a big bite

Blondie loved it.

but simple. The beef was superb, ground

at this marketplace.

Her greedy eyes settled on a foie gras with cinnamon bread at 44 lei as an ad-

by the Chef from the best cuts they had not sold that day at premium price. To add to the

Michael Barclay Mab.media@dnt.r0


www.business-review.eu Business Review | September 2019

46 CITY

Cultural calendar

Película Film Festival September 11-15, Cinema Elvire Popesco, Cervantes Institute, Cinema Muzeul Taranului Roman

By Oana Vasiliu

Oscar for Best Actress in a Lead-

nightclub, Studio 54 (directed

ing Role and Best Foreign Film

by Matt Tyrnauer, 2018), the

and received the Golden Globe

history of French electronic

Artist category, and Yes for Best

for Best Foreign Film in 1999.

music, in French Waves (Julian

Hard Rock Performance. Tickets

Starke, 2018) and an explora-

start from 259 RON.

DokStation Music Documentary Film Festival September 12-15, Control Club, Expirat, Apollo 111, Fabrica Gastropub, Plaza Romania

Focusing on the culture of South

tion of the past and future of Italian disco music, in Italo Disco Legacy (2018). Artists speak in New Order: Decades, PJ Harvey:

iMapp Bucharest September 21, Piata Constitutiei

A Dog Called Money, Suede: The Insatiable Ones, Mystify: Michael

This year iMapp Bucharest is

Hutchence, Swans: Where Does

hosting the International Video

A Body End? and Pure Love –

Mapping Competition – Winners

The Voice of Ella Fitzgerald,

League, gathering the winners

while documentaries I Want

of seven major video mapping

My MTV, Our Hobby Is Depeche

festivals worldwide. The façade

Mode and The World According

of the Palace of Parliament will

to Radiohead offer unique per-

become the canvass of the video

spectives on musical and social

mapping world, with each final-

phenomena. Tickets start from

ist team revealing its own way

RON 15.

of exploring the world and the international video mapping

America, the festival combines film screenings with dance,

Evanescence concert September 15, Arenele Romane

food, music, exhibitions, and stories of those connected with

scene. 2019 also marks 30 years of the World Wide Web (WWW), which the event organizers will reference through the themes of

this famously passionate region.

The fourth edition of DokSta-

Brazil is the focus of the fourth

tion will feature movies about

Evanescence, a popular US rock

universal connectivity, border-

run of the festival and iconic

the evolution of disco music,

band featuring vocalist Amy Lee,

less communication, travelling

film, Central Do Brazil will open

documentaries on Radiohead,

will perform in Bucharest. The

and exploring different cultures

the event. The movie, which

INXS, David Bowie, Suede,

group has sold tens of millions

and regions online and offline.

depicts the emotional journey of

Elvis and PJ Harvey, alongside

of albums worldwide, while its

Organizers say the visual content

a former teacher and a nine-year-

local productions. This year’s

international nominations and

can be conceptual or figura-

old boy, earned over 30 awards

selection includes 21 musical

awards include two Grammys

tive, realistic or symbolic, fit an

and nominations in international

documentaries, such as the story

received in 2004 for the songs

abstract approach or be a part of

festivals, was nominated for an

of the legendary Manhattan

Bring Me To Life, in the Best New

a narrative puzzle/story.




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