BR/10/2019

OFFICES AND HOUSING FOR THE MIDDLE CLASS DOMINATE THE MARKET

October, 2019 / Volume 23, Issue 10

www.business-review.eu

6

TECHNOLOGY BUILDS PROACTIVE LONG-TERM STRATEGIES FOR COMPANIES

18

BUCHAREST DISCOVERING ITS POTENTIAL AS A STARTUP HUB

22

ECONOMIC GROWTH REMAINS SOLID IN CEE REGION AND ROMANIA

32

HUGE POTENTIAL

FOR FOREIGN INVESTMENTS

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

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi • Editor-in-Chief • 6 Offices and housing for the middle class dominate the market

COVER STORY

A

Building a sustainable economy

8 Huge potential for foreign investments

ccording to the European Commission’s estimations, the Romanian economy is set to expand this year by 3.3 percent. Meanwhile, the Eurozone will grow by 1.2 percent,

while the overall growth in the EU bloc will stand at 1.4 percent.

Therefore, Romania will remain one of the economies with the fastest GDP expansion in the region.

This should be a strong reason for foreign investors to come to Romania, either to bring or expand their businesses here. Yet the

STARTUPS 22 Bucharest discovering its potential as a startup hub

26 5G development set to unleash new wave of startup innovation

local economy still faces big challenges, with the lack of proper

EUROPEAN UNION

road infrastructure and the unpredictability of legal and fiscal frameworks having been the most debated in recent years. Plus, the executive directors of the IMF suggest that public investment should be increased by focusing on public infrastructure and

28 The new European Commission:

achieving a more efficient absorption of EU funds.

A weak leadership to pilot the EU boat through the storms

On the other hand, representatives of the local business environment think that the biggest question for Romania at this

CITY

moment is how sustainable its growth is – how long it can keep growing at the current pace and what happens when it is no longer be able to do so?

Has there been a real evolution in Romania’s development? Is a spike in FDI rate to be expected after two years of stagnation? Answers to these important questions and many more will be debated during the 6th edition of the Foreign Investors Summit, the most awaited event that brings together foreign business communities, state authorities and diplomats. So, join us for a discussion on leadership and ways to build a brighter and more sustainable future for Romania.

40 The alternative tourism experience

44 Cooking up a storm for local food

45 Restaurant review 46 Cultural calendar

EDITORS-IN-CHIEF: Anda Sebesi, Sorin Melenciuc JOURNALISTS: Anca Alexe, Aurel Constantin, 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 | October 2019

4 NEWS

WHO’S NEWS

Emerging market status. “This is extraordinary news for Ro-

BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at anca.alexe@business-review.ro

mania’s economy. The ASF constantly supported the BVB and the capital market in Romania by lifting legislative barriers and cutting costs. I am sure that thanks to its new status, the Bucharest Stock Exchange will get a breath of fresh air and we’ll see new major investors and issuers,” said Leonardo

Tudor Ionescu has been promoted to Head of Advisory & Transaction Services for CBRE Romania’s office segment, starting this November. Ionescu first joined CBRE in 2017 and has over 17 years of experience in the design, office and hotel industries. The decision to promote Ionescu marks the evolution of CBRE Romania’s office department towards the provision of integrated real estate services, based on commercial, technical and architectural knowledge, along with the company’s extended expertise on rental services, for both local and global clients.

Andreea Hamza will lead JLL Romania’s newly-established Living department, which will provide consulting services for the residential sector. Hamza has over 17 years of experience in the real estate industry. Prior to joining JLL, she worked as Head of Marketing and Sales at Hagag Development Europe.

Over the course of her career, she has set up 12 sales teams, having coordinated real estate projects throughout the development process, from planning to delivery. page 5

The reclassification follows market improvements implemented by authorities in the country

Romanian stock exchange upgraded from frontier to emerging market status

Badea, the president of the Financial Supervisory Authority (ASF).

In September 2018, the FTSE Russell Country Classification Advisory Committee endorsed the following criterion rating changes: “Liquidity – Sufficient broad market liquidity to sup-

By Sorin Melenciuc

port sizeable global invest-

The Bucharest Stock Exchange

subsidiary of the London Stock

ment” was upgraded from “Not

has been reclassified from

Exchange Group (LSEG).

Met” to “Restricted,” follow-

Frontier to Secondary Emerg-

FTSE Russell acknowledged

ing an improvement in broad

ing market by FTSE Russell,

Romania for meeting the require-

market liquidity. “Off-exchange

three years after being added to

ments for attaining Secondary

transactions permitted” was

the watch list. “Following the

Emerging market status. The

upgraded from “Not Met” to

September 2019 annual review,

reclassification follows market

“Restricted.” The “Liquid-

FTSE Russell confirms that

improvements implemented by

ity – Sufficient broad market

Romania, currently a Frontier

authorities in the country, ac-

liquidity to support sizable

market, is to be reclassified as

cording to the company. Romania

global investment” criterion is

a Secondary Emerging market,

was added to the watch list in

the single outstanding criterion

effective from September

September 2016 for a possible

required for attaining Second-

2020,” said FTSE Russell, a

reclassification to Secondary

ary Emerging market status.

Romania’s retail sales remain strong on higher fuel spending during holiday season

By Sorin Melenciuc Retail sales, a key index of the

which rose by 13.6 percent year-

consumer market, rose in August

on-year, and by sales of food

by 6.7 percent year-on-year in

products (+5.1 percent). Sales of

Romania, mainly due to higher

non-food products rose by 4.2

fuel sales, according to a Na-

percent.

tional Institute of Statistics (INS) report.

Retail trade was sustained in August by the sale of fuels,

Compared to July, retail trade rose in August by 0.4 percent, in seasonally adjusted series. In the first 8 months of this year, retail

Romania’s consumer market rose by 7 percent last year to EUR 123 billion

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

NEWS 5

Six out of ten companies have experienced IT security breaches in the last three years

By Anca Alexe

Alice Ivanovici is the newly-appointed Partner in EY Romania’s Audit Department. She has 17 years of experience in financial audit, of which 13 have been spent at EY. Ivanovici has been involved in auditing major multinational companies. Her professional activity includes special projects regarding capital markets and collaborations with complex teams of EY specialists from Europe, the US and Asia.

About six out of ten companies have suffered a computer security breach in the last three years, and a third of IT security professionals who have not had any incidents say they are very likely to be victims without knowing it, a global Bitdefender study has found.

The share of companies that have experienced incidents in the first six months of 2019 is around 25 percent, compared to 32 percent for the whole of last year.

More than half of IT security

Most often, executives are reluctant to IT security policies

specialists are concerned about companies’ overall level of

from the rules. In addition, one

such a major stress factor that

readiness to cope with a global

third of respondents found that

many IT security specialists

attack, which is not surprising

employees in the companies

have considered resigning.

considering that 57 percent say

where they work lacked basic

Insufficient investments in

that those in management are

computer security knowledge.

security are the main obstacle

the least likely to comply with

That is why 49 percent of respon-

to building a stronger position

IT security policy.

dents say that their concerns

against increasingly sophisti-

about the imminent cyber-attack

cated computer attacks. Poor

are reluctant to IT security

on the organization causes

security is undoubtedly a

policies, trying to either delay

them stress at home too, largely

major threat to any business,”

or disregard them when they

because of constraints related to

says Liviu Arsene, a computer

come into force as they con-

budgets and qualified personnel.

security specialist at Bitde-

Most often, executives

sider themselves to be exempt

“The lack of resources is

fender.

Kevin Turpin has been appointed as the new Regional Director of Research for Central and Eastern Europe. Turpin will focus on continuing to grow the marketleading research platform Colliers has developed over the past few years, both regionally and locally. He has been working in the Commercial Real Estate industry for over 20 years, now joining Colliers from JLL in Prague where he was Head of Research & Strategy for CEE. Prior to that he worked in HR consultancy, IT and the public sector.

sales in Romania increased by 7 percent year-on-year. The Romanian government has adopted during the last few years a strategy of wage-led growth, stimulating household consumption and GDP growth rates. But this model has generated larger fiscal and current account deficits.

Last year, the retail trade growth rate slowed down to 5.4 percent – the slowest pace in 5 years - from 10.8 percent in 2017.

Romania’s consumer market rose by 7 percent last year to EUR 123 billion.

Antoaneta Curteanu will take over the role of Vice-President of the Board of Directors and coordinator of the Retail Division of UniCredit Bank Romania starting on November 1. She is currently the Coordinator of the CIB and Private Banking Division and a member of the UniCredit Bulbank Directorate. Curteanu has over 25 years of experience in the banking system, of which 18 were spent within the UniCredit Group.

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

6 REAL ESTATE

Offices and housing for the middle class dominate the market In the context of a heated discussion taking place lately about the local real estate market, data on the first half of 2019 show that only four transactions of over EUR 10 million were closed during this period, and over 70 percent of the total volume of EUR 340 million was generated by just two transactions: The Office in ClujNapoca and Prime Kapital’s portfolio of shopping centers.

By Aurel Constantin

More than half of the investments made in the first semester were related to office buildings

T

In the last 12 months, prices for industrial properties in Romania have increased

he first half of 2019 showed that there

2014, to EUR 1.2 billion. However, buyers re-

Poland, Hungary and Slovakia recorded

is liquidity in secondary cities for

main very careful and due diligence processes

investment drops.

high-quality, institutional products, a

are very detailed,” said Andrei Vacaru, Head

fact supported both by the largest transaction in this time period, namely the sale of The Of-

of Capital Markets at JLL Romania.

More than half of the investments made in

In the first six months, the investment market in Central and Eastern Europe exceeded EUR 5.47 billion and was dominated

fice in Cluj-Napoca, as well as by the fact that

the first semester were related to office build-

by Poland and the Czech Republic, which total

70 percent of the volume total investments

ings, a trend that we expect to continue in the

80 percent of the investment volumes.

were directed to cities other than Bucharest.

next period, with offices remaining the most

“It is true that there is an increased number of transactions in various stages of trading

liquid real estate class at the moment.

In a regional context, Romania and the

PRICE EVOLUTION In the last 12 months, prices for industrial and

on the investment market, which is likely to

Czech Republic are the only countries that

office properties in Romania have increased

bring the market to its highest volume after

have recorded higher investments, while

(the yields in the industrial segment have

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

REAL ESTATE 7

fallen by 50 basis points and those on the

tively by the more sophisticated demands

office market have decreased by 25 basis

displayed by buyers, in terms of both budget

percent) live in separate individual dwellings,

points), while prices for retail have remained

and construction materials. Therefore, even

with the proportion being strongly influenced

at the same level.

though the statistics announce effervescence

by the rural environment, while the rest of

on the market, we can say that this is not felt

the households live in buildings with several

regional and global trends, where investors’

at the middle class level, which, at the mo-

dwellings (37.9 percent). The buildings in

appetite is increasing for industrial and logis-

ment, is the most stable sector,” said Adrian

which households reside are almost entirely

tics projects, especially due to the expansion

Stanescu, Imobiliarium Project Manager.

of the detached houses type in the case of the

“The above evolution is in line with

of e-commerce and implicitly of the spaces

The average budget for a home in this

“More than half of households (60.9

rural environment (97.4 percent), while the

that serve online retailers, while the shopping

segment is between EUR 80,000 and 120,000,

urban environment predominantly features

centers’ traditional products are losing their

where factors such as location or built area

apartments in buildings with several dwell-

attractiveness, especially in the case of by-

must be taken into account. On average, the

ings (69.8 percent),” shows the INS survey.

products. It should also be mentioned that, in

price estimate is about EUR 1,400 per square

the context of the apparent market efferves-

meter in Bucharest, relatively lower in the

There is also a need for additional space, bigger houses or apartments, since only

adjacent areas

54.4 percent of dwellings have 3 to 5 rooms.

of Ilfov County,

Households residing in 1-2-room dwellings

and in the next

(43.2 percent) represent a significant share.

period the

If in the urban area a little more than half

price change is

of households (56.3 percent) lived in small

expected to be

dwellings with 1-2 rooms, in the rural area

minimal. At the

more than seven out of ten households occu-

same time, in

pied houses consisting of 3 or more rooms.

relation to the

Overall, 37 percent of all families obtained

geographical

their housing in the 1981-2000 period, with

evolution of this

households in the urban area being above this

segment, the

level (43.4 percent). In rural areas, over two

middle-class

out of four families live in homes built before

areas that have

1980.

developed the

“It is also noted that the share of new

most over the

housing, built after 2001, accounts for only

cence, there is a risk that the gap between the

last years are the North and the East of the

21.9 percent of the total, being higher in urban

price expectations of buyers and sellers will

Capital.

areas (26.5 percent) than in rural areas (16.6

increase in the next period,” said Vacaru.

The average buyer in this segment is between 30 and 40 years old, married, inter-

percent),” the study shows.

Last year, the share of households

INCREASED OFFER ON RESIDENTIAL SPACES

ested in a two or three-room apartment, has

equipped with a bath or shower was 73.6 per-

a corporate job and an available budget of

cent, and the share of those with toilets was

The residential market has had an increase in

over EUR 80,000. Their procurement criteria

72.2 percent. In urban areas, over 9 out of 10

the number of homes delivered, but the offer

first include the location, followed by the

households are equipped with baths/showers

is located in big cities, mainly in Bucharest.

construction quality, the infrastructure - easy

and toilets.

According to Imobiliarium, the real estate ex-

access, the surrounding facilities, such as

hibition with the largest number of exhibiting

markets, schools, hospitals, etc., and the price

highly pronounced for both types of utilities,

developers, the residential middle-class seg-

per square meter.

mainly due to the poor development of the

“In terms of residence, the differences are

public water supply system and the sewage

ment in Bucharest is the only one which is on an upward trend and maintains a sustained

A NATION OF OWNERS

and wastewater treatment system in rural

pace, as it is stable in terms of the quality-

It is not a surprise that people aged between

localities compared to urban ones; almost

price ratio. Furthermore, over 80 percent of

30 and 40 years old are the main buyers of

half of the rural households benefit from the

the developers present at Imobiliarium have

new dwellings. On the one hand, they are the

advantages offered by the existence of a bath

offers that fall into the middle-class category.

category with the highest incomes and they

and toilet,” INS reports.

“The market for new residential construc-

are likely to be starting a family. On the other,

Of these households, those of employees

tions has increased in terms of the number

seniors tend to already have a home, since 96

and self-employed workers (including em-

of housing units, with the majority focusing

percent of Romanian families own their own

ployers) who had greater financial resources

on the middle class, especially in the last two

homes, according to the “Survey on quality

were able to provide the two types of utilities

years. This tendency is also determined by

of life” carried out by the National Institute of

in a much higher proportion than the average

the slowing appetite for purchases, respec-

Statistics last year.

for the rural environment.

8 COVER STORY

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

HUGE POTENTIAL FOR FOREIGN INVESTMENTS With Romania having the potential to remain one of the leaders of economic growth in Europe, the local business environment continues to attract foreign investments. While the FDI stock as of December 31, 2018 amounted to EUR 81.1 billion, according to the most recent data released by The National Bank of Romania (BNR), our country is still facing big challenges as the economic dashboard indicates that industrial output and exports have entered the red zone since the beginning of the summer, while soaring wages have continued to boost retail sales and imports.

By Anda Sebesi, Sorin Melenciuc and Aurel Constantin

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

COVER STORY 9

T

he value of foreign direct investment (FDI) in Romania in 2018 was revised upwards by the National Bank of Romania (BNR) to EUR 5.27 billion, from the EUR 4.94 billion the

central bank had initially reported in February. FDI stock as of 31 December 2018 amounted to EUR 81.1 billion, with EUR 57.5 billion in equity positions, including reinvestment of earnings, and EUR 23.6 million in debt positions.

The Romanian economy grew by 5 percent in the first quarter of 2019, driven by a rise in domestic consumption, which was fueled by wage increases. This year, the domestic economy is set to expand by 3.3 percent, according to an estimate of the European Commission, the executive arm of the European Union. Meanwhile, the Eurozone will grow by 1.2 percent, while the overall growth in the EU bloc will stand at 1.4 percent. On this backdrop, Romania will remain one of the economies with the fastest GDP expansion in the region.

“Undoubtedly, Romania will remain the leader of economic growth in Europe, hence – as in the case of many Western European companies – we were actively working on entering this dynamically developing – although still very young – market. Its advantages – like most emerging markets – are additionally lower entry barriers and the huge potential of Romanian entrepreneurs, who, following the development of the local economy, are starting their own business activities, looking for fast and attractive sources of financing. Nevertheless, access to capital can be hindered for local entrepreneurs,” says Klaudiusz Sytek, president of board at Aforti Holding, adding that Romania was the first foreign market to which Aforti Group expanded. “It is the country with one of the largest and most dynamically developing economies on the continent, so it was a rather logical step for us. We first entered the market with our fintech Aforti Exchange, which offers online currency exchange services, in October 2017, in order to “test” the market and see whether it would live up to its potential,” he says.

According to Sytek, for Polish companies, an expansion to the Romanian market, which is very similar to the Polish one, gives them the opportunity to grow their business as the market in Poland is already mature and requires different strategies than it did a few years ago, when it was a market of rapid growth, as Romania is today.

“In Romania, we see two major trends that are attractive for Polish businesses – on the retail side, household consumption is very high and consistently growing quarter to quarter, sustained by the consistent wage growth. For B2B services providers, like Aforti, we see on the one hand the increase in the entrepreneurial mindset, with more and more Romanians starting their own businesses, while on the other hand, there is still low competition among service providers on the local market. Both these trends are further enhanced by the size of Romania’s population, of 20 million, which ensures the appropriate market size to build meaningful businesses,” explains the representative of Aforti Holding.

The local economy has maintained high growth rates this year, boosted by higher earnings and spending, but two major engines

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

10 COVER STORY

have turned red, raising concerns regarding the risk of a looming

owned enterprise reform agenda. However, many Romanian experts

downturn. The economic dashboard indicates that industrial output

doubt that such measures would be implemented during a busy

and exports have entered the red zone since the beginning of the

electoral period.

summer, while soaring wages continue to boost retail sales and imports.

These opposite trends are adding pressure on the already high trade and current account deficits.

“For the first time since the great recession, high frequency

The Romanian Fiscal Council, led by Daniel Daianu, recently said that the current fiscal-budgetary policy entails significant risks generated internally by the severe tightening of the budgetary construction. This is determined by the very low level of tax revenues and the high degree of spending rigidity, by excessively ambitious

data offers hard evidence of trouble in the tradable sector of the

commitments in relation to the available resources.

economy,” Ciprian Dascalu, chief economist at ING Bank Romania,

“I think the biggest challenge at this moment regarding the Roma-

wrote in a research note. In July, “industrial data showed annual

nian market is the question of how sustainable the growth is, how

contraction on all fronts: mining (-7.4 percent), energy (-4.7 percent)

long it can keep growing at the current pace and what happens

and, most importantly, manufacturing (-4.4 percent). To add insult

when it is no longer be able to do so. The so-called country risk

to injury, the previous month’s data was revised downward,” he

has to be taken into consideration by all the foreign players who

added. Worse, experts now believe that the lagged contagion from

are already present or want to enter Romania,” says Sytek of Aforti Holding.

softer demand in Romania’s main trading partner countries is just

EXTERNAL THREAT

starting to show

At the same

up in the data, “as

time, the exter-

a likely build-up

nal context is

in inventories kept

characterized by

things afloat for

a slowdown of

a while”. For the

economic activ-

moment, weaker

ity as well as by

external demand

the effects of the

is still offset by

trade war between

high domestic

major economies.

consumption and

For Romania, the

by booming investment in the construction sector, helped by the

biggest threat comes from the slowdown of the German economy,

low base effect and fiscal facilities.

accompanied by a visible collapse in car production.

NEED FOR FISCAL CORRECTION

million (about one million less compared to the 2015-17 average an-

Despite higher deficits, considered unsustainable by many, the gov-

nual production) and reached a level close to the lows seen in 2009.

ernment increased spending on wages and pensions hoping to get

Romania is an important spare parts supplier of German car manu-

some traction for ruling party PSD in the upcoming elections.

facturing companies and their troubles threaten to hit local suppli-

Starting in September, pensions increased by 15 percent, a measure

ers and exports hard in the following months.

As of June, German annualized car production plummeted to 4.7

that puts pressure on both fiscal and external deficits.

“The current account deficit rose to 4.5 percent of GDP in 2018,

REAL ESTATE

the highest ratio in the EU. The key driver was the continued

As pundits say, the Romanian property sector is facing the same

deterioration of merchandise trade balance on the back of import-

challenges as the rest of the economy, stemming from fiscal instabil-

intensive growth and slower growth of exports of goods and ser-

ity, the lack of public investments in physical infrastructure and the

vices,” IMF experts noted in their latest report on Romania. “These

quality of public policies and administration. In fact, these are some

reflected the eroding competitiveness of Romanian producers in

of the reasons why the volume and size of the Romanian real estate

domestic and export markets as well as the euro area slowdown,”

market place the country behind others in CEE. “The Romanian

they added.

market has not exceeded EUR 1 billion per year in the last three

Following the review of the local economy, the IMF emphasized

years and has not reached the levels recorded before the economic

the need to re-energize the structural reform agenda to improve

crisis, even though the rest of the region had better performance.

Romania’s medium-term growth prospects. The executive direc-

However, this expected market downturn will not be comparable to

tors of the IMF suggest that public investment should be increased

what happened in the previous economic crisis as the financial situ-

by focusing on public infrastructure and achieving a more efficient

ation is now more stable. A market correction is more likely to take

absorption of EU funds, and called for moving ahead with the state-

place, due to the shift in global forces and issues such as the trade

www.business-review.eu Business Review | October May 20162019

COVER STORY 14 11

agreement between China and the US, Brexit, and the situation in

operation, of which 51 percent are in Class A projects, pundits say.

the Eurozone,” said Francesca Postolache, partner, assurance ser-

Last but not least, in large Romanian cities, traffic congestion is

vices at PwC Romania earlier this year for Business Review.

leading property developers to design projects that create new links

Along similar lines, Fulga Dinu, country manager operations at Immofinanz Romania, thinks the local real estate market is

between office and living spaces.

“Although it is true that most foreign investors have decided

definitely on the right path. “Recently I have noticed a healthiness

to invest in the office sector, having a more profitable overview of

and good structure of the real estate market thanks to experienced

their capital, more and more companies have shifted their priori-

developers operating here who understand the ingredients of this

ties, considering the development of residential projects as part

business. This automatically leads to a good product that is im-

of a larger mixed-use development. There are a great number of

mediately targeted by long-term investors, besides the fact that

examples on the Romanian market nowadays, besides us,” says

more and more local developers and investors are appearing, prov-

Antoniu Panait, managing director at Vastint Romania. With a vast

ing the high level of trust in the

experience in many other cities

Romanian market,” says Dinu of

in Europe, Vastint Romania has

Immofinanz Romania.

also decided to go further with

Elsewhere, investment activ-

a project that is meant to nicely

ity in the Romanian property

complement its existing portfolio

sector has pointed to a maturing

of office buildings, situated in key

industry that has also boosted

areas of Bucharest. “The project

confidence levels in the field

will have almost 600,000 sqm of

among national and international

built surface and one of the most

companies. In 2018, the invest-

relevant details about this project

ment volume on the local market

besides the fact that is located in

climbed to almost EUR 1 billion

District 1 of Bucharest is that it will

with Romanian investors starting

have great focus on green areas,

to gain visibility on all segments,

in order to increase the quality of

ranging from office to residential

life for those who choose to live

and logistics. In fact, domestic in-

there,” adds Panait.

vestors generated a quarter of the

As pundits say, the residential

total investment volume in real

market in Romania is becom-

estate, followed by South-African

ing more and more stable, with

funds, with a share of 18 percent,

healthy and not-so-spectacular

according to research conducted by real estate consultancy firm CBRE Romania.

“On a growth pattern but with a more cautious optimism reflected in the forecast figures of the main macroeconomic indicators, 2019 is shaping up to be a remarkable year with high transac-

price evolutions. Potential buyers are increasingly interested in medium and medium-high apartments, located in areas with easy access to public transport, schools, parks, shopping centers and other social facilities.

“As expected, due to the high demands of clients, who are now

tional activity, as

better informed

major real estate

and also more

properties and

aware of their

portfolios are in

needs, the

different purchas-

construction of

ing stages,” said

residential projects

Daniela Boca,

has evolved a lot

head of research at

and the market

CBRE Romania.

is continuously

As for office development in

developing. This growth has led to

Romania, developers are adapting to the preferences of new genera-

more conscious and optimized spaces that aim to meet the needs

tions of employees and changing the very idea of the offer. Develop-

of clients who are more selective and have a clear overview of their

ers now design projects for complex living, providing good quality

choices,” says Panait. He highlights the fact that since a large num-

of life and urban regeneration rather than just work premises. The

ber of constructions are old, all the new players on the market have

Romanian capital only has another 216,000 sqm under develop-

chosen unexploited areas, most of them developing residential proj-

ment in the office segment, on top of the 3 million sqm already in

ects near Bucharest. “Spending less time in traffic and having more

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

12 COVER STORY

time for family and hobbies are the most important assets in a city

to see business opportunities, have had a major contribution to

that is getting extremely crowded. A good location in the city, with

this success. We are beginning to see the results of their strategy

easy access to all the important daily destinations by alternative

to co-opt Romanian employees in large projects, but we believe

transportation, mixed with facilities that can ease the lives of the

that the potential of this industry has not yet been reached, and

people living in a residential project are the trends that will define

that the next few years will surely bring more returns on American

the next period,” adds the managing director of Vastint Romania.

investments in Romania, in the IT sector,” said Roxana Popescu, the

As for the attractiveness of the local real estate market, Dinu of Immofinanz Romania says that Romania still offers very attractive

managing director of KeysFin. One of the biggest investments made in 2019 in the Romanian

yields, with a gap of approximately over 2 percent to neighboring

IT industry was UiPath’s latest funding round. UiPath, the leading

countries. “We see an increasing transaction volume. A mild yield

robotic process automation (RPA) company founded by two Roma-

compression mainly refers to the good quality of products and

nian entrepreneurs, raised USD 568 million in a Series D investment

demand from the investors’ side.

round to reach a valuation of USD

More generally, economic stability

7 billion, making it the fastest

and the overall interest policy

growing and highest-valued AI

are important factors for yield

enterprise software company

development,” she says. Dinu adds

worldwide.

that Immofinanz’s focus on the

On another level, we can

office and retail segments is the

find that several investments

consequence of the company’s

have recently been made in the

overall portfolio strategy. “There-

country. Blugento, a provider of

fore, we have decided to exit the

e-commerce solutions based on

residential segment. But there is

the Magento platform, received

definitely still enough space on the

a strategic investment of EUR 1

residential market for new projects

million, following the signing of

as shown by statistics: Romania

an investment agreement with

still has a lower stock compared

Polish IT group R22. The part-

to other CEE countries and, in

nership involved the sale of a 31

addition, the yields obtained by

percent stake and was aimed to

developers or investors are still

develop the platform and expand

attractive. Added to this is a low

the Blugento business on several

level of taxation, which completes

European markets, the first being

the larger picture of opportunities,” concludes the Immofinanz Romania representative.

Poland and France. This was the second investment Blugento managed to attract in two years. The first capital injection, worth EUR 120,000, took place in June 2017.

Finqware, a Romanian fintech startup that is preparing to launch

IT The IT industry remains one of the top investments in Romania,

on the European bank aggregation market, received a seed invest-

according to an

ment of EUR

analysis by Keys-

180,000 from Gap-

Fin. US compa-

minder VC. It was

nies operating in

the company’s first

Romania recorded

round of external

a total turnover of

financing follow-

EUR 347 million

ing its establish-

and a net profit of

ment in 2018, and

EUR 25.8 million

Finqware is plan-

in 2017, resulting

ning to become the market leader

in a 7.5 percent profit margin.

Companies like Microsoft, Stefanini, Amazon or Adobe account

for Open Banking in Europe in the coming years.

The amount attracted by the startup founded by Cosmin Cosma,

for approximately 34 percent of the total profit made by US compa-

Dumitru Taraianu and Danut Covalciuc will be used to further

nies in Romania, reaching EUR 76 million.

develop its solution and infrastructure. The company’s objective

“The IT sector in Romania has grown rapidly in recent years, and American companies, recognised worldwide for their quick ability

is for its customers to be part of the first wave of adoption of Open Banking in the autumn of this year.

www.business-review.eu Business Review | October May 20162019

COVER STORY 14 13

TELECOM

that some of the smallest banks in the system will be bought by big-

The most important investment in the communication sector

ger players. It is a trend that we can also see in Europe and it is good

in 2019, so far, has been Vodafone Romania’s takeover of UPC

for the local banking system,” said Dominic Bruynseels, former CEO

Romania. The deal was announced in 2018 by the two companies

at First Bank.

at the international level and it has involved the sale of Liberty

The takeover of Marfin Bank by Vista Bank, part of Vardinogi-

Global (UPC’s owner) operations in 6 European countries. Vodafone

annis group, was finalised this year and the brand was changed.

agreed to pay EUR 10.8 billion in cash and assume EUR 7.6 billion in

The bank has 30 branches in Romania, of which 9 are in Bucharest,

outstanding debt, in the biggest deal completed by Vodafone since

and it is planning to double its market share to 1 percent in the

2000. The acquisition is one of the most significant in the Romanian

coming year. Antonios Mouzas, CEO of Vista Bank Romania stated

telecom industry and it promises to bring higher quality communi-

that the change of name to Vista Bank Romania is the last step of an

cations services to customers after combining Vodafone’s expertise

in-depth process of business consolidation, which included the EUR

in mobile services with the proficiency of UPC specialists in TV and

30 million capital increase in September last year, the expansion of

fixed services. The transaction was completed this year and Voda-

the management team, as well as the improvement of the product

fone immediately launched the first combined offers to clients.

and services portfolio.

While the most important investment in the telecommunications industry in 2019 will be the tender for the 5G frequency

ENERGY

spectrum, the market is waiting for another huge takeover: the sale

The Romanian energy sector is diversified but obsolete, and it

of Telekom Romania Communications (formerly Romtelecom) and

needs investment, good management and functional markets.

Telekom Romania Mobile Communications (formerly Cosmote). We

Today, the best hopes for investment are related to the Black Sea

know for sure that the owners at Deutsche Telekom are looking to

offshore gas projects. Two major projects are now more advanced

sell the operations in Romania, but it is still unclear who will buy it.

than the others and could boost the entire sector. The biggest one,

So far, after rumors circulated about Russian and Bulgarian investors, the media has reported on talks between Telekom and Orange for the sale of the former Romtelecom, which operates the

Neptun Deep, is being developed by a joint venture between US giant ExxonMobil and Austria’s OMV group.

In 2012, the two companies said they had discovered between 42

cable TV and fixed-internet division, and between Telekom and

and 84 billion cubic meters of gas reserves around 170 km offshore.

RCS&RDS for the sale of the mobile communications division. None

But this year, ExxonMobil and OMV Petrom decided to freeze the

of the companies involved have yet commented on the information,

project due to both the offshore law and emergency ordinance

so nothing is official. But if the sale is eventually completed this

114/2018, which imposed new taxes on energy players.

year, we shall have another huge deal, just as big as the VodafoneUPC takeover.

The other major project, the Midia Gas Development Project, is operated by Black Sea Oil & Gas, together with two co-venture partners. Despite regulatory problems, the consortium decided to go

BANKING

ahead with the project and approved an investment of USD 400 mil-

The most important takeover this year was the one in which Exim-

lion. Many experts say that Black Sea resources are a great opportu-

Bank and the National Bank of Greece signed an acquisition agree-

nity for both the Romanian economy and the local energy sector.

ment for 99.28 percent of Banca Romaneasca. As a result of this

But there are two key issues for the success of these projects:

transaction, EximBank will operate for the first time in the retail

building transport infrastructure and a functional market to sell the

banking segment in Romania, thus becoming a universal bank, with

gas. For Romania, the key pipeline project is BRUA. But this project

a market share of 3 percent, positioning the bank among the top

“faces severe problems because of Hungary’s signaled opposition to

financial-banking institutions in Romania.

transit arrangements to Austria, a move with potential consequenc-

“I am pleased to announce this transaction, which creates a

es for the development of Romania’s offshore gas,” John M. Roberts,

Romanian bank of reference that will showcase both the experience

a UK-based senior fellow at the Atlantic Council’s Eurasia Center

of the Romanian Bank in the retail banking segment, as well as the

and Global Energy Center, said in a recent report.

ability demonstrated over time by EximBank to support the local business environment,” said Traian Halalai, the CEO of EximBank.

The amount paid by Eximbank has not been made public, but it

“Overall, current work on BRUA is intended to fulfil two purposes: to serve as a limited set of interconnectors in the four countries through which BRUA passes, and to enable production from

beat the offers made by First Bank or Patria Bank, another company

Romania’s offshore gas fields to reach both the domestic Romanian

in full ascension. The National Bank of Romania rejected, in 2018,

market and, in a limited fashion, export markets,” John M. Roberts

OTP Bank’s takeover of Banca Romaneasca, not allowing the EUR

wrote.

72 million offer to be finalised. First Bank, owned by the American

Other hopes are related to the revival of renewable energy

investment fund J.C. Flowers, which had been interested in Banca

sources, following years of investment freezes due to a cut in subsi-

Romaneasca, bought Piraeus Bank last year and Leumi Bank at the

dies. The total power of local wind turbines is 3,029 MW, but some

beginning of 2019. It has managed to reach a market share of about

experts say that doubling the production capacity of wind power

1.8 percent and it is still looking for investments. “It is very likely

could solve some of the problems Romania is now facing.

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

14 COVER STORY

Technology is Romania’s only chance to catch up with developed countries This month, Business Review will host the sixth edition of the Foreign Investors Summit, the largest annual event focusing on foreign investors in Romania. Ahead of the event, we spoke to Ionut Simion, the Country Managing Partner of PwC Romania, to answer some of the most pressing questions on this topic.

By Catalin Alistari Last year, Poland became a member of the developed countries’ group, setting a precedent for Eastern European countries.

Recent developments in the Romanian economy seem to have created a favourable climate for our country to follow in Poland’s footsteps. As former members of the communist bloc, Romania and Poland seemed to have started on an equal footing. How did Poland manage to gain such an advantage in its development?

insignificant in terms of GDP per

Let’s first note that on September

already made strong investments

26, FTSE Russell upgraded the

using EU funds. In terms of foreign

Romanian capital market from

direct investments, statistics show

frontier to emerging market status,

capita, five years later the others had slowly begun to outline a plan, set out objectives and targets, while we had nothing of the sort.

This came to light when the first wave of Eastern European countries joined the EU, ahead of us, in 2004. Three years may not seem like much of a difference, but they were decisive. They didn’t know what to do with the EU money in the beginning either, but they caught up quickly. When Romania finally joined the bloc, Poland had

that Poland had attracted over EUR

which was a historical moment and excellent news for all investors

200 billion by the end of last year, while Romania had only attracted

in our country and particularly for AmCham members, who actively

EUR 81 billion. Indeed, Poland is a bigger country, almost double in

contributed to this achievement through their efforts to increase the

size. But they knew how to use the money, with good infrastructure

quality of infrastructure and the legislative framework. A functional

and development projects. They also had the necessary workforce,

capital market is critical in connecting a national economy to the

even though many people had left the country. But Poland was able

global economy in a fierce and increasingly complex global competi-

to bring people back, with good repatriation programmes, providing

tion for financing, and it was an ingredient that had been missing

support and jobs. This is another major difference. Poland invested

from Romania’s investment offer. It’s true that Poland has performed

in production units and created many jobs. As a regional hub, it can

better in the last 30 years, and one of the possible reasons is their

get finance, science and engineering professionals to come back and

better awareness of the challenges Eastern European countries faced

find good jobs. It also attracted many Ukrainians to cover its work-

after the fall of the iron curtain. But another big difference was the

force deficit. We weren’t even able to attract people from Moldova.

fact that Poland already had the Solidarity movement, which forced the entire nation to really think about alternatives to communism.

Meanwhile, Romania was desperate to change the system, moved

Beyond the above-mentioned preconditions, what did Polish governments do differently from those in Romania?

very quickly and ended up in a vacuum, something that I don’t

Poland used fiscal policy as an extremely efficient tool, even though

think any other Eastern European country experienced. A shift in

it didn’t have a fiscal liberalization system. Perhaps Romania’s adop-

the economic paradigm was natural, but Romania suffered the most

tion of a flat income tax was the right decision to make at the time,

because nobody took responsibility. At one point, we carried out a

but this system has been so perverted that we no longer really have

comparative analysis which showed that Romania wasted an entire

a flat tax. We have a 10 percent income tax, a 5 percent dividend

decade between 1996 and 2006. Although in 1990 the difference

tax, a 16 percent profit tax, the 19 percent VAT, and others. Poland

between Romania and the other countries in the region was almost

applied a different system, so at the time of the 2008 crisis they had

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

COVER STORY 15

two stability pillars that allowed it to be the only European country

Romania has a huge workforce deficit - it needs about a million

to not experience a recession. First, they had the 2012 European

more people in order to sustain an economic growth of 3-3.5 percent

Football Championship project, on which they followed through -

for the next 5 to 7 years. But there are no plans to increase birth

they invested in infrastructure, borrowed money and kept everyone

rates, no projects to bring back those who have left. For example,

employed. They boosted revenues for all the companies involved,

our education system has no strategy, we’ve had multiple reforms,

which had positive effects on the entire economy. At the same time,

and nobody understands it anymore. This is where we can point to

they had enough fiscal space to cut taxes, which was impossible in

another difference between us and countries in the region – a lack of

Romania due to the already reduced 16 percent flat tax.

continuity in governing that is specific to Romania. Since 2012, we’ve

We also have an issue with VAT collection. We’ve only just reduced the collection gap from 44 to 36 percent in the last five years.

had 11 different prime ministers and 12 finance ministers. What kind of vision or national project can you expect from such a country?

Poland’s VAT gap has shrunk from 28 to 14 percent only in two years through a massive fiscal reform. The VAT collection gap is Romania’s biggest problem. While the growth engine represented by the state’s

A developed economy is one that innovates. In your opinion, does the Romanian economy have this capacity?

capital investments is missing altogether, the other engine, namely

I’ll provide a multifaceted response, and I’ll start with the empiri-

the state’s ability to collect taxes, which would allow it to create

cal aspect. The main innovator, empirically, is an individual who

fiscal space and boost development, was

has an idea and decides to act on it – the

killed off at the exact moment when it was

entrepreneur. While we haven’t really had

about to become productive.

an entrepreneur class in Romania so far,

Romania contracted a loan from the

I’ve been talking to more and more young

World Bank to implement a modern IT

people who are thinking of doing some-

system for the ANAF. Poland also borrowed

thing, opening a business, exploring an

EUR 80 million, but from the EU. We know

idea, even though they may not yet have a

the case very well because PwC acted as a

business plan. I like to think that the new

project manager and did what the Pol-

generation of entrepreneurs will come up

ish state would have done – acquired the

with new ideas and solutions.

technological solutions, created a friendly

Then there’s the establishment side

interface, took into account the needs and

– things we’ve invested in as a country.

requirements of the beneficiary, and deliv-

We’ve had tax exemptions for IT workers

ered a modern tax collection system. The 10

for over a decade now. People have been

percent VAT gap is essentially tax evasion,

talking about eliminating these facilities

not what we call “non-compliance”.

To make you aware of the size of the problem, a 5 percent im-

and I don’t think that would be good for the Romanian economy. We may talk about introducing such facilities

provement in revenues to the state budget as a percentage of GDP

in other sectors, but the main reason for these facilities in the IT&C

means EUR 10 billion – the equivalent of Romania’s annual public

sector is that can generate added value quickly. This industry, which

investment budget. But lately this money hasn’t been spent, either

was insignificant a few years ago, is now generating 6 percent of

because it didn’t exist due to the failed tax collection or because it

GDP and that number may go up to 12 percent in less than 5 years.

was used to sustain other public spending. We understand the need

It would be a mistake to remove these fiscal incentives because the

to adjust salaries, to increase pensions, but instead of buying the

IT industry is still growing strongly in Romania and we must keep

fish, we should’ve learned how to use a fishing rod. The biggest harm

these professionals in the country. The future is about technology

done by the absence of public investments is the failure to engage

and this is Romania’s only chance to quickly catch up with devel-

the most important economic sector, namely Romanian companies,

oped countries. I greatly trust Romanians’ ability to innovate and

local SMEs. The lack of public investments meant that local busi-

do brilliant research. This is the third pillar: fiscal incentives for

nesses were no longer able to create jobs, forcing people to look for

research. I’ve had many discussions with tax authorities on this sub-

work abroad.

ject. In my opinion, any help provided to those who include at least a small R&D component in their products or services is essential.

We’re touching upon another one of Romania’s major problems.

Could the workforce deficit be an obstacle in our country’s development?

We must restore the R&D know-how, and Romanian entrepreneurs

Definitely. Using the reasoning above, Romanian workers in many

this field, but it’s not functional. We haven’t managed to create an

sectors have had to go abroad to find jobs. Most of them initially left

effective system of incentives. “Made in Romania” has had some

for a short period of 3-6 months, but many still haven’t returned,

success but it’s still far from what’s happening in Poland, Hungary or

and those who leave for more than three years tend to never return

the Czech Republic. We should invest more in national pride and put

because they’re highly adaptable and quick to integrate. As a result,

more trust in Romanians who are building something.

will inevitably learn how to go from idea to prototype and then to a final product. At this moment, there is a fiscal credit measure for

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

16 COVER STORY

EIB Group to remain Romania’s predominant financing partner The European Investment Bank Group has been present in Romania since the early 1990s, backing investment projects in both the public and private sectors. BR spoke to Lara Tassan Zanin, the Head of EIB Group’s Bucharest Representation, about the EU Bank’s operations in Romania and how it can help the country turn investments into the main driver of its economic growth.

By Anca Alexe What are the EIB Group’s main activities in Romania and how have they evolved over the years?

EIB resources, and advising. The

In Romania and other EU coun-

manufacturing. In the lending

tries, the EIB supports investment

area, we are actively cooperating

projects that reduce disparities in

with the government and other

regional development, strengthen

public authorities, banks and cor-

economic competitiveness and

porates. We are looking to further

improve living standards. In

develop our operations: in the

2014–2018, the Bank provided EUR

public sector we’ll focus on priority

4.1 billion to projects in Romania.

infrastructure through co-financ-

EIB’s lending commitment in

ing with EU grants, particularly in

Romania since the start of opera-

transport, agriculture, health, and

tions here amounts to EUR 14.6

education. Our priorities include

billion. The EU Bank will remain

supporting projects benefitting

Romania’s predominant, reliable

from guarantees provided by the

financing partner.

The EIB also provides technical assistance, with some 40 experts

Bank is present in all major sectors of the Romanian economy: transport, energy, environment, SMEs,

European Fund for Strategic Investments (EFSI) which forms part of the Investment Plan for Europe

located in Bucharest, the group’s largest office, to support Romanian

(Juncker Plan) in energy, innovative and resource-efficient manu-

authorities in preparing and implementing projects in view of speed-

facturing, innovation, municipal infrastructure and telecommunica-

ing up the absorption of EU funds, reforming public procurement

tions. Our main EFSI counterparts are corporates, municipalities and

in order to create value for taxpayers through savings in centralized

utilities. As examples, we can mention the BRUA gas pipeline project

purchases. The impact of these projects should ultimately be felt

promoted by Transgaz and the Arcelik innovative production plant

across Romania through improved water supply, better transport

opened recently in South-Muntenia. In cooperation with banks, we

linkages, modern rolling stock, and greater resilience to natural

will continue supporting SMEs and mid-caps. The minimum loan

disasters. The European Investment Fund is part of the EIB Group.

amount for direct financing is EUR 12.5 million and we finance up to

Its central mission is to support micro, small and medium-sized

50 percent. Smaller amounts, including finance to SMEs and mid-

businesses by helping them access finance. The EIF designs and

caps, is intermediated by commercial banks.

develops venture and growth capital and guarantees microfinance instruments targeting this segment. In this role, the EIF fosters EU entrepreneurship, growth, and employment. In 2018 alone, the EIB

Why do Romanian companies still have a hard time securing investments and what role does the EIB Group play in improving this situation?

Group delivered EUR 1.3 billion to Romania and the support in 2019

Indeed, Romania has one of the lowest shares of firms investing in

is expected to be of a similar magnitude.

the EU, despite the strong growth in recent years and the persistent

objectives in support of innovation, research and development,

need to upgrade the capital stock. There are a number of obstacles

Which sectors is the EIB Group primarily interested in financing in Romania?

which hamper corporate investment and increase investment gaps,

The EIB model will continue to focus on lending, blending EU and

skills. A weak balance sheet structure (high leverage, low equity

including high uncertainty, regulation and a limited availability of

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

COVER STORY 17

base) is also a factor that limits access to bank credit for many firms

market aware of these challenges. The limited availability of skilled

and makes investments more difficult.

and unskilled workers is hampering investments. Romania cannot

However, some of the firms struggling to access finance are in-

afford to leave women out of the market.

novative and growing strongly. Here, the EIB Group supports Private Equity funds to invest in startups and tech growth companies. The EIB Group provides commercial banks in Romania with a package of

What is the mechanism through which Romanian farmers and agriculture-related businesses can access EIB funds?

guarantee portfolio instruments and competitive loans to reduce col-

An EIB loan of EUR 450 million to finance Romania’s contribution to

lateral requirements and interest rates to make finance more acces-

the implementation of the Rural Development Programme together

sible. On the limited availability of skills, the EIB supports Romanian

with grants from the European Agricultural Fund for Rural Develop-

universities to refurbish or build new labs, research facilities, better

ment in 2014-2020. The loan co-finances rural development projects

campuses and implement digitalization.

supported by EU funds totalling EUR 5.4 billion across Romania, as well as the modernisation of 3,000 farms, and co-finances 400 proj-

What is the SME initiative and what types of companies does it target? Are startups also included in the initiative?

ects for the processing and marketing of agricultural products and

The SME Initiative in Romania, a joint initiative of the EIB Group and

product is available in five commercial banks that will support farm-

the European Commission, has significantly contributed to sus-

ers to fill in the application forms for their projects and get approval

tainable growth and employment by facilitating credit at attractive

for the corresponding co-financing in a loan at very attractive terms,

terms. The initiative is deployed in collaboration with Romanian

thanks to the package the EIB Group provides to banks.

750 schemes to improve services for the rural population. The EIB

authorities responsible for EU structural funds. After a first successful tranche of EUR 100 million, a EUR 150 million top-up

What are EIB Group’s plans in Romania for the coming years?

has just been agreed and will bring the

We are aware that Romania’s economic

overall funding to support Romanian SMEs

growth is funded by private consumption

to EUR 1.4 billion.

that benefits from the reduction of taxes.

We hope and expect the main economic drivers in the future to be investments – a

How does the Group promote gender equality in Romania’s business community?

more sustainable way to ensure robust growth – together with sensible economic decisions and structural reforms. This

The EIB lent EUR 22.3 million to Garanti Bank Romania in 2018 – under the EFSI guarantee – to support

could make Romania more attractive to foreign direct investments.

businesses in Romania. EUR 5 million of the loan amount is de-

The EIB Group will continue to support growth and human capital

voted to female entrepreneurs, matched by another EUR 5 million

investments in Romania. In the future we will be focusing on: the

from Garanti. This innovative loan will give female entrepreneurs

public sector, with direct and EU funds co-financing public infra-

representing SMEs and mid-caps access to more favourable financ-

structure, energy efficiency, education, urban infrastructure, health;

ing. To access these loans, companies have to be more than 50

the banking sector, with RON denominated lending, EFSI-backed

percent owned by one or more women or have 26 to 50 percent of

funding, supporting innovation and employment for SMEs and

shares be owned by one or more women, with a woman acting as

mid-caps, and further developing the SME Initiative; the corporate

the chief executive, operating or financial officer. On October 16, an

sector, with continued efforts to deploy the EFSI supporting innova-

ad-hoc workshop is organized by the EIB with PE funds, business

tion and climate change and project finance in sectors like health,

angels, and successful female entrepreneurs to discuss challenges

transport, and energy.

faced by women in accessing finance in Romania. Discussion is

Through our JASPERS and PASSA experts, we will continue deliv-

around barriers faced by female entrepreneurs and what can be done

ering Advisory Services to support the preparation and implementa-

to overcome them. On the one hand, there are several day-to-day

tion of major infrastructure projects, capacity building (solid waste

obstacles adding to women’s difficulties in setting up and growing a

sector, public procurement), and the development of public invest-

business. The average woman entrepreneur is married, has children

ment and governance institutions (PPP, National Promotional Bank).

and is more likely than men to have family obligations, so she often

employment for SMEs and mid-caps, and further developing the

faces time and mobility constraints. To ease them, more structural

SME Initiative; the corporate sector, with continued efforts to deploy

improvements are needed, such as improving the availability and

the EFSI supporting innovation and climate change and project

affordability of childcare, connectivity, etc. On the other hand, part

finance in sectors like health, transport, and energy.

of gender inequalities in entrepreneurship pertain to access to credit,

We will continue delivering Advisory Services to support the

finance and capital. The EIB will try to promote among commercial

implementation of major infrastructure projects, capacity building

banks similar credit lines to the one implemented with Garanti and

(waste, public procurement), and the development of public invest-

facilitate the networking of relevant stakeholders to make the local

ment and governance institutions (PPP, National Promotional Bank).

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

18 INTERVIEW

Technology builds proactive long-term strategies for companies Florin Popa, Business to Business Director at Orange Romania, talked to Business Review about the main digital trends seen on both the international and local scenes and how the company meets the changing needs of businesses, individual customers and local communities.

consumer behaviour, sometimes at a rapid

By Anda Sebesi

new normal, as the number of internet users

pace. This brings both challenges and opportunities for business.

Which of these trends can be noticed in Romania now?

I believe all of them can. Connectivity is the has more than doubled over the last decade, giving way to a more connected society. It is estimated that 3/4 of the global population will have internet access by 2030. Romania is no exception, as each year we see an exponential growth of mobile data consumption.

For example, in the second quarter of 2019, Orange Romania registered 40 percent more data traffic comparing to the same period of 2018.

The use of applications, websites and smart devices has considerably increased, therefore the amount of data generated has grown exponentially.

We have the know-how and resources to help companies get to know their customers better and to grow their business, while optimizing the resources they invest. Data can determine the success of a company on a competitive market.That is why we offer our clients new ways to better use their data, both

What are the main digital trends on the international market?

We call it the “Internet of Enterprises” era,

by consultancy, as well as in the design and

a third phase that follows the first internet

management phase of the systems they need

First of all, probably one of the most promi-

revolution we witnessed in 1985 and the era

for this purpose.

nent trends in the consumer and business

of mobile and social media, which emerged

environments is hyperconnectivity. Two-

around 2000.

thirds of the world’s households own a smart-

The Internet of Enterprises is about the use

We are the travel partner of our clients in what we call “Data Journey”. On this journey, we can accompany our customers to collect,

phone and ubiquitous connectivity is giving

of data to fuel faster and better educated busi-

transport, secure, store & process, analyse

individuals access to more information than

ness decisions based on customer insights

their data and then make the right business

ever before. Also, it is almost impossible to

and instant access to transactions, also help-

decisions at the end of this cycle.

imagine a business that is not connected with

ing to shape new business models.

its customers, suppliers or employees almost

More obvious lately is also the people’s

Integrated services that bring simplicity to end users’ lives was another global trend re-

100 percent of the time. From consumers to

quest for simplicity. Customers want one

flected on the Romanian market. That is why,

governments, communication and interac-

point of contact for as many of the services

in 2016, we decided to provide a complete

tions are constantly evolving, shaping percep-

they use as possible. Convergence delivers

fixed-mobile consumer offer, made steps

tions, priorities and attitudes.

this factor.

into the financial services field by launching

In today’s connected society, data is a

Importantly, the competition for resources

highly valuable asset. Moreover, it is said to

and increasing awareness of environmental

be the new currency of the digital economy.

challenges have a transformational effect on

Orange Money and set convergence as one of our strategic priorities.

Just as all over the world, the rapid urban

www.business-review.eu October Business Review | May 20162019

development and the migration of popula-

COVER INTERVIEW STORY 19 14

sought after, alongside data centre hosting or

tal issues Romania must tackle, such as air

the new context. In light of this, what are the main solutions that companies look for when it comes to technology?

pollution, traffic and waste management.

In today’s competitive landscape, companies

technologies in the area of unified communi-

The substantial challenges they pose demand

need partners that bring industry knowledge

cations and solutions designed for customer

different perspectives that also bring op-

and data-driven customer insights to foster

interaction and engagement. In this respect,

portunities. Such opportunities are smart city

co-innovation.

Orange Business Services is a reference

tion to large cities has created environmen-

projects, which use technology in order to

At Orange, our products are designed to

address issues like deficient consumption of

allow companies to be up to date with the lat-

electricity or water.

est technologies, but also to build a long-term

In the last years, numerous smart city projects have been deployed in several Romanian cities, of which I would particularly mention

strategy that is proactive rather than reactive.

More precisely, together with customers, startups and technology partners, we create

cloud migration and smart Wi-Fi solutions. At the same time, there is high demand for new

provider for contact centre and call centre solutions.

How has Orange adapted to the changing needs of the local business community?

On the local market, Orange already has over

Alba Iulia Smart

products

two decades of experience as a digital trans-

City 2018, an

that address

formation partner for companies.

initiative Orange

users’ spe-

For our business customers and the public

adhered to in

cific needs.

sector, we have developed over the past years

2016 and deliv-

Orange Fab,

products and services to help organizations’

ered the first

a startup

digital transformation in order to help them

integrated smart

accelerator

become more efficient, agile and productive.

city project in

developed

But optimization is no longer the only key to

the country.

by Orange,

success, as digital technologies and the use

Two years later, we finalised the implementa-

is a programme based on the concept of co-

of data can play a significant role in business

tion, with more than 600 operational sensors

creation. We support young entrepreneurs

development, creating new customer interac-

all around the city, connected through mo-

with mentoring, technology and access to

tions, sales contexts and personalized offers.

bile, fixed and IoT dedicated networks. The

clients, as well as B2B clients, through in-

data collected is available to local authorities

novative solutions that transform the way

secured ecosystem of technologies, solu-

and their business partners for better manage-

they work. So far, our overall investments in

tions and partners able to assist our business

ment of city resources or for the improvement

startups has reached EUR 700,000.

customers to better monetize the data they

of their citizens’ quality of life.

As mentioned earlier, our business cus-

This is why we’ve unified an end-to-end

generate every day. Moreover, starting July,

tomers are becoming more aware about the

we’ve combined our experience in the Roma-

How do these trends change businesses and consumers?

risks associated with the business digitali-

nian business environment with international

zation process and therefore are willing to

expertise in business solutions integration, as

Technology plays a crucial role in the custom-

invest in solutions that protect their busi-

our dedicated business division became the

ers’ decision-making and also in the ability

ness against these

local representative

of businesses to meet the needs of today’s

risks. For example,

of Orange Business

consumers. Local companies are facing pres-

our cyber security

Services (OBS).

sures to digitize their customer journeys and

solution, Business

adopt flexible IT infrastructures, able to cope

Internet Security, is

with Orange Busi-

with fast changes.

a highly appreciated

ness Services , an

tool as it can detect

international organ-

inside companies. Employees, customers,

and prevent complex

isation within

suppliers and business partners are teaming

threats in real time.

up across the city, the country or the world,

We’re seeing a

The way people interact has also changed

The association

the Orange Group that is specialized in

whenever necessary, from any device. This is

higher demand for security solutions, both in

business transformation solutions based on

why at Orange, we provide tools to facilitate

the central area of IT architecture as well as in

IT&C, will enable large companies, SMEs and

better collaboration and take advantage of

the mobility area. In the first half of 2019 we

public authorities to transform their organ-

digital transformation. Once accustomed with

saw a 50 percent increase in revenues gener-

isations through the use of technology and

new technologies, you can more efficiently

ated by this type of services compared to the

digital information. OBS is known as a global

manage your resources – time, budgets – or

same period of last year.

infrastructure operator, technology integrator

find easier ways to source them.

Technology forces companies to adapt to

Whether we’re talking about securing

and value added service provider force, with

mobile terminals or securing fixed networks,

over 25,000 specialists in IT&C operating in

these security solutions are increasingly

220 countries and territories.

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

20 INTERVIEW

These enlarged capabilities provide our

We’ve also added to our national portfolio

market for over 20 years and in this timespan,

clients with access to best-in-class solutions

some of the technologies developed interna-

we’ve seen a total reshape both in terms of

developed in no less than 18 global research &

tionally by Orange Business Services, which

technological advancement and the way the

development OBS centres. Public authorities,

are currently being implemented for clients in

society uses it.

large companies and SMEs will benefit from

banking, retail or agribusiness.

innovations in areas such as smart networks,

For example, the smart networking solu-

On the local market, one of the hot topics is the deployment of 5G, a technology that

Internet of Things (IoT), cloud computing, cy-

tion SD-WAN, the latest development in the

promises to create the premises of a fully

ber security, data analytics, machine learning

move towards the latest development in

mobile society. A 5G network can simultane-

and artificial intelligence (AI).

the move towards software defined ser-

ously support applications such as 4K video,

vices in networking. For a CEO who needs

AR/ VR, self-driving, applications that require

How has Orange invested in technologies so far? Do you have any novelties?

an infrastructure able to cope with rapid

increased operational efficiency. For example,

market changes, mergers and expansions,

low energy consumption and a dynamic allo-

Investments in network infrastructure are a

or the implementation of new processes and

cation of resources. Switching to 5G will allow

prerequisite for service quality and customer

customer interaction tools, it is a platform for

simultaneous connection for a large number

trust. At the same time, they represent the

business transformation.

of devices (sensors, connected objects, in-

foundation for technology developments. We

Another example is Flexible Engine, which

dustrial robots), unlimited access to different

see that the network reliability is one of the

is a cloud computing platform as a service

wireless technologies and a very low latency.

main satisfaction drivers for almost half of our

that uses machine learning algorithms to al-

We are speaking of unseen technical capabili-

clients.

low for big data and

ties, a huge potential

predictive analysis.

for high-perfor-

3.5 billion invested by Orange over the past

The business ap-

mance technological

22 years went into networks and allowed us

plications of such

solutions such as

to sustainably create the best national mobile

predictions are vir-

connected autono-

telecommunication infrastructure.

tually limitless, from

mous machines,

That’s why a significant part of the EUR

the anticipation of

eHealth, cloud VR or

enabling work, access to information or

customer behav-

AI support.

entertainment, but they also lead to industry

iours in marketing

changing services like real-time monitoring,

campaigns to pro-

that, in coming

instant mobile banking transactions or con-

cess optimizations

years, the telecom

nected cities. This brings a long-term benefit

in manufacturing or

industry will be

for both the final customer and to the country

crop harvesting time optimization in modern

redefined by the accelerated adoption of

as a whole, by creating an environment that

agriculture.

Cloud, Big Data analytics or IoT solutions. As

The connected objects are not only

is favourable to investments, a climate which stimulates value creation and stability.

Last but not least, starting this year we’re

Forecasts say

part of our IoT ecosystem, in November 2018

offering Flux Vision. It is a data analysis plat-

we launched nationally the Orange LTE-M

form that provides information on the mobil-

(Long Term Evolution for Machines) network,

tion are key. In our journey on the Romanian

ity of different population segments in order

dedicated to connecting low power devices.

market, we at Orange have brought new

to optimize communication with customers

technologies and new capabilities year after

and create dedicated geo-marketing analyses

brings a great potential for the develop-

year, and we are proud to be recognized as an

or campaigns.

ment of all other industries, from energy to

For this, customer experience and innova-

innovator within Orange Group as well.

The digital revolution requires cohesive

The telecommunications infrastructure

services, thanks to the countrywide span and

solutions with a high degree of service

speeds that place Romania among the top

prove the technological feasibility of 5G in

personalisation. This is why we’ve partnered

countries with the best internet connections

Romania. Following the first real life 5G test

with international and local innovators who

in the world. There is still room for improve-

in Europe, which we ran last year in Florești,

share our vision - device manufacturers,

ment in terms of digitalization. More than

Cluj County, this year we enabled live trans-

platforms, integrators, and technology pro-

one fifth of Romanians have never used the

missions from the main stage of the largest

viders. We also help startups to gain traction

internet and when it comes to digital public

music festival in Romania, using the same 5G

and become commercially viable through

services, Romania has the lowest perfor-

technology, which will become part of our

incubation and acceleration programs such as

mance among the EU member states. In order

day-to-day lives.

Innovation Labs and Orange Fab.

to unleash the potential, the further evolution

We’ve continued the effort to test and

of the industry is closely related to invest-

New in our technological portfolio is also

ments. Romania has to keep up with the Eu-

through the use of connected devices and

What should we expect in terms of innovation in technology on the Romanian market?

process automation.

Orange has been operating on the Romanian

automatization in each and every industry.

Live Objects, a platform dedicated to IoT projects which allows for new business models

ropean market, which is currently investing in implementing new technologies that allow

www.business-review.eu Business Review | October May 20162019

COVER INTERVIEW STORY 21 14

The real estate investment market is on an upward trend in Romania Gijs Klomp, head of INVESTMENT PROPERTIES at CBRE Romania, tells Business Review about the current status of the Romanian real estate investment market and its perspectives, and highlights the sectors expected to be the most dynamic in terms of transactions in the upcoming period.

By Anda Sebesi

ABOUT Gijs Klomp head of investment properties, CBRE Romania With over 17 years of experience in real estate, Gijs was involved in investment transactions worth over EUR 2.00 billion. He set up the ING Real Estate Investment Management business in Romania, worked for consultancy companies JLL and CBRE and in 2016, he joined NEPI, the largest retail property landlord in Romania.

Currently, he is Head of Investment Properties at CBRE Romania.

majority of the office deals were concluded in Bucharest, the largest single transaction signed nationwide amounted to about 80 percent of the total office volume. Hence, Dedeman’s acquisition of the project named The Office and located in Cluj from NEPI Rockcastle and businessman Ovidiu Sandor at an estimated value of EUR 129 million was the highlight of the transactional activity during the first semester of the year. Cluj is one of the most dynamic regional cities. Another office

How is the Romanian real estate investment market looking right now and how is it different from the CEE one?

transactional volume up to 15 percent higher

project, Liberty Technology Park, was sold

than the one recorded in 2018, surpassing the

in the second part of the year to White Star

EUR 1 billion threshold. A similar value has

Real Estate in partnership with a top private

The Romanian real estate investment market

not been reached since 2014. Prime yields

American University by Fribourg Develop-

is improving in terms of liquidity on the back

are expected to suffer a mild compression

ment, the real estate division of Fribourg

of more supply attracting a greater diversity

towards the year’s end, especially for prime

Capital. Regional cities are also gaining more

of buyers. Investment volumes are expected

office properties, given the quality of the

ground in the CEE markets, as we have seen

to top those seen in 2018. The main differenc-

projects that are in advanced stages of ne-

more deals in regional cities in these markets

es between CEE and Romania remain pricing

gotiation. This is especially true considering

than in previous years, reflecting the maturity

(Romania has not had the significant yield

the mandates on the market for the sale of a

of secondary Romanian, Czech and Polish

compression seen in more established CEE

number of quality office portfolios that gather

cities.

markets) and the buyer’s universe (Romania

class A projects with low vacancy rates and

lacks the international core investors as well

blue-chip tenants located in Bucharest’s office

as the domestic institutional capital that has

market hotspots.

been the driver of other markets).

What are your plans as the Head of INVESTMENT PROPERTIES at CBRE Romania?

My plan is to offer high quality services to

Which sectors of the Romanian real estate market are expected to be the most dynamic in terms of transactions?

our clients leveraging on the unique combi-

In your opinion, what are the market’s perspectives?

The perspectives are encouraging as the avail-

With almost half of the total investment

property management and valuation business

ability of institutional supply is up, which in

volume, the office sector hasn’t given up

lines), our EMEA INVESTMENT PROPERTIES

combination with the very attractive yield

the leading position it also held in H1 2018.

network which gives us great insight into

spread attracts new capital. In the second

The retail segment claimed 33 percent of the

international investors’ needs, and my experi-

half of 2019, we expect to witness the signing

total, while the industrial and hotel sectors

ence both as an investment agent as well as an

of several large deals which at are currently

attracted a combined share of 19 percent. But

investor, allowing me to understand inves-

under final settlements. Taking the above

this transaction split can also be seen in the

tors’ needs and help build bridges between

into account, we estimate for the entire 2019 a

CEE markets. Even though the overwhelming

buyers and sellers.

nation of CBRE’s deep insight into the local real estate market (thanks to our leasing,

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

22 STARTUPS

Bucharest discovering its potential as a startup hub With a population close to 2.5 million and an infrastructure for startups that is under development, Bucharest has the potential to become a regional hub for entrepreneurs on the long term. The challenge is significant as the city will have to support the growth of the startup ecosystem that comprises everything from private equity funds to startup accelerators, networks of business angels and co-working spaces.

By Ovidiu Posirca of things in order to become relevant and appealing to startups; to become a destination of choice, a hub. First of all, a favorable legal framework. Secondly, an attractive tax regime. Then, affordable and qualified labor, which is usually provided by educational institutions, universities, and technical schools. Then, capital should be available, even abundant. Not lastly, a community as large as possible and geographical density,” Cristian Munteanu, managing partner at Early Game Ventures, told BR. Munteanu says that Bucharest has the “critical mass” to become a startup hub, meaning that the city is big enough.

“Several technical schools and universities create a qualified labor market, even though the price of this labor is going up fast. The IT infrastructure is okay – meaning that the internet penetration and speeds are high.

Otherwise, Bucharest does not offer even the basic APIs needed to build applications – no real-time traffic data, real estate data, environment data, no data at all,” he adds. But Universities provide quality labor for startups

B

boasting some of the fastest broadband

in a study of the city’s attractive-

speeds in the world. Telecom companies

ness to people born over 1997-2012,

have already tested 5G, the new wireless

namely Generation Z. These are the people

technology that could be launched commer-

that might consider starting a business in

cially next year, in the city. The greater trans-

the coming period. The ranking published

fer speeds provided by 5G could unlock a

by Nestpick places London top, followed by

new wave of startup innovation, which could

Stockholm and Berlin.

also support the growth of the local entrepre-

was obtained for connectivity, with the city

the best city in Romania for entrepreneurs to build startups.

ucharest ranks 86th out of 110 cities

Bucharest’s best score of close to 84 points

his conclusion is that Bucharest is currently

neurial ecosystem, say commentators.

“Any city must be able to offer a series

50,000

sqm

the co-working spaces projected to become operational in Bucharest by end-2019

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

24 STARTUPS

Meanwhile, the municipality made an attempt to fund some 200 startups in a program called Bucharest Start-up City. Each of the eligible companies would have received a grant of up to EUR 50,000. However, the implementation of the program was delayed as the City Hall realized this spring that it was running out of money. By summer, the municipality was running a deficit of more than EUR 210 million and started to cut spending.

The initiative designed to help entrepreneurs was axed late in spring.

The capital could increase its appeal to

BUCHAREST’S APPEAL TO GENERATION Z INDEX 2019 Factor Score (of 100 points) Government digitalization 59.24 Connectivity/5G 83.35 Digital payment & banking

20.32

Digitalized mobility/Sharing economy

32.79

Education 3.60 Entrepreneurial spirit & innovation

30.55

Co-working spaces 33.61 AI Industry 23.84 Source: Nestpick.com

startup founders by further growing and engaging with the local global tech communi-

ables producer Fitbit opened in Bucharest

stock in the city stood at only 1.7 percent at

ties, building a stronger academic institution

its largest research & development facility in

the end of 2018, according to data from Col-

presence in the ecosystem and increasing the

Europe. These are some of the entrepreneur-

liers International Romania.

qualifications of the existing local technical

ial companies that either have their roots in

talent pool, suggested Florin Vasilica, trans-

Bucharest or have developed their opera-

key role in the entrepreneurial ecosystem as

action advisory services leader at profes-

tions in the capital at a later stage.

they host the startups and welcome funds

sional services firm EY Romania.

“The good side of an early-stage ecosys-

“Bucharest scores a good position among EU capitals when talking about the huge

Nonetheless, co-working players play a

and other stakeholders that can engage with entrepreneurs.

tem are the development opportunities.

potential cost benefits by placing offices in

There is still a huge gap to recover, but the

locations outside the primary hub. Due its

have gained international experience and

ecosystem is narrowing year by year with

share of the population, the concentration of

could give it back through bigger, more com-

more startups and financing rounds on the

the talent pool in Bucharest is also expected

plex acceleration programs. We have some

local market,” Vasilica told BR.

to be one of the largest in CEE cities,” says

really good initiatives that support entrepre-

the EY Romania representative.

neurs that could be opened to international participants, attracting them to discover the

SUCCESS STORIES FROM BUCHAREST Already, there are some success stories of companies founded in Bucharest that made it big. UiPath, the robotic process automation (RPA) startup, was founded in 2005 “in a tiny apartment” in Bucharest

“There are many players in Romania that

MORE FLEXIBLE SPACES FOR ENTREPRENEURS

market and the innovation potential,” Oana

The range of offices offering flexible

Bucharest, the co-working operator, told BR

leasing terms has also grown significantly in the past few years, with new co-working

Craioveanu, co-founder & CEO of Impact Hub She added, “On the other hand, I really think we should offer more recognition to Romanian founders that start their business

operators launching in the

here and grow them internationally. They

city. WeWork, one of the

are the living proof that there are quality

In 2012, the company

pioneers of the co-work-

resources here that others could use as well.”

pivoted to RPA and

ing industry, also plans

Speaking about the development of the

landed its first seed round

to open a location in the

local entrepreneurial sector, Craioveanu sug-

as DeskOver, says the company on its website.

in 2015. By 2019, it had reached a valuation of USD 7 billion after raising more than

capital. By providing office space that can be leased for various periods ranging from

gested that the city should see more investments in public-private partnerships.

Nonetheless, the CEO of Impact Hub Bu-

one hour to one year, these nimble

charest says that the capital is already build-

funds. The company has developed a large

players have built their own communities

ing its profile as an attractive destination for

R&D center in the Romanian capital.

of subscribers that include entrepreneurs,

startups and investors.

USD 1 billion from various investment

E-commerce group eMAG also has its HQ in Bucharest and its main warehouses near

freelancers and remote workers.

The market for co-working spaces in

“There are more and more opportunities for both early-stage entrepreneurs and also

the city. Naspers bought a controlling stake

Bucharest will reach a total surface of 50,000

scaling ones, ranging from opportunities to

in the company in 2012, since when eMAG

sqm this year, according to real estate consul-

get funding, know-how, visibility, validation

has expanded regionally. Its revenues topped

tancies. Some of the largest office developers

and feedback, and that has definitely boosted

EUR 1 billion in 2018.

in the city have hurried to sign lease deals

the image of the Bucharest ecosystem as a

with co-working operators. However, the

cradle for innovative entrepreneurs,” she

share of co-working spaces in the total office

concluded.

After taking over Romanian smartwatch market Vector Watch, American fitness wear-

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

26 ENTREPRENEURSHIP

5G deployment set to unleash new wave of startup innovation With Romania set to announce the winners of the tender for 5G spectrum by year-end, the local startup community could harness the potential of the new generation of wireless technology, which will impact a wide array of industries, ranging from transportation to healthcare and manufacturing.

By Ovidiu Posirca

5G will have a horizontal impact and, ideally, should open a world of possibilities for startups

T

he biggest telecom players in Roma-

“The winning operators might be able

one point to another, will be less than one

nia have already carried out limited

to use part of the spectrum of frequencies

millisecond. This will make it possible, for

tests on 5G, while globally the main

starting January 1 2020,� said Bogdan Iana,

instance, for cars to communicate between

ANCOM vice-president, in a press release.

themselves in traffic or for a surgeon to

smartphone makers are starting to launch products that can use the new network standard.

In short, the deployment of 5G networks will lead to a massive increase in data trans-

remotely conduct a procedure as if he or she were alongside the patient.

Locally, the telecom regulator ANCOM

fer speeds. The current 4G technology has a

aims to complete the tender for 5G by Octo-

transfer speed of 1,000 Megabits per second

ber 31 for spectrum in the frequency bands of

(Gbps), while the theoretical speed with 5G

OPENING FRESH POSSIBILITIES FOR STARTUPS

700 MHz, 800 MHz, 1,500 MHz, 2,600 MHz

could reach 10 Gbps. The latency rate, which

This upgrade will fuel the development of

and 3,400-3,800 MHz.

is the time it takes to send information from

the Internet of Things (IoT) ecosystem, which

www.business-review.eu Business Review | October May 20162019

ENTREPRENEURSHIP COVER STORY 14 27

could connect anything from home sensors

need housing, jobs, services and infrastruc-

and ZTE, Swedish Nokia and Ericsson and

to self-driving cars and energy infrastructure.

ture for their burgeoning and aging lives.

South-Korean Samsung Electronics.

Telecom gear maker Ericsson estimates that

5G will provide the connectivity that will

Everything from the way in which we

some 4.1 billion IoT cellular connections will

transform the lives of new city-dwellers,”

travel in the city to how we shop and learn

use 5G worldwide by 2024, according to CB

Florin Vasilica, transaction advisory services

could be transformed by the new wireless

Insights.

The fast development of the

leader at professional services firm EY Romania, told BR.

technology.

In the manufacturing sector, we might see

network will also generate

He sees opportunities

the development of smart factories that could

demand for new prod-

for local entrepreneurs

integrate augmented reality, IoT, automation

ucts and services that could be launched

and startups in smart

and artificial intelligence. The new technol-

city projects with a

ogy could support AR systems for training,

by startups. The

focus on the health,

construction and repairs, according to CB

deployment of 4G

transportation and

Insights.

technology allowed

smart buildings

for the massive

components. The EY

growth of startups

Romania representa-

that disrupted various

tive suggested that

industries, ranging from

home automation and

ride-sharing app Uber to social media platform Instagram and movie-streaming giant Netflix.

“Like any technology that innovates at

IoT connected devices are another market segment that could get an entrepreneurial boost

In the energy sector, the development of 5G could support the expansion of smart grids that in turn could increase energy management efficiency, thus cutting overall energy costs.

The retail segment could see VR dressing rooms and AR experiences in stores or at home, say CB Insights analysts. Spending on VR/AR apps for retail showcasing could reach

going forward.

“New business models will arise as part of

some USD 59 billion by the end of next year.

the level of infrastructure, 5G will have a

increased connectivity, creating an innova-

For financial players, the new wireless

horizontal impact and, ideally, should open

tion playground for local entrepreneurs and

technology could help consumers carry out

a world of possibilities for startups. Many

startup,” suggested Vasilica.

transactions instantly on their devices.

industries will be exposed to disruption,

Furthermore, 5G might also provide a

The power of 5G will also be visible in

and new business models will become pos-

shot in the arm to the virtual-reality (VR)

the media and entertainment industry. On

sible. What comes first to mind is video live

sector, which has developed at a slower pace

the upgraded network, movie downloads

streaming. Then data-intensive IoT, V2X

than the predictions of market analysts.

will decrease from an average of 7 minutes

(vehicle-to-everything – e.n.), smart cities, govtech and pretty much anything one can imagine,” Cristian Munteanu, managing partner at Early Game Ventures, told BR.

“I do think 5G in many cases is the linchpin and there will be an earlier adoption curve on the industrial side versus the consumer side for AR (augmented reality – e.n.)/VR,”

to just 6 seconds. Over the next decade, the global media industry stands to gain up to USD 765 billion in cumulative revenues from new services and applications enabled by 5G technology, according to a study conducted

by Ovum, which is quoted by CB Insights.

In the transportation field, the 5G network

But Munteanu

Chris Bartlett, head

will play a crucial role in the vehicle-to-

wonders how many

of Verizon Commu-

infrastructure (V2I) communications. In this

nications’ Verizon

way, the car could be linked to traffic lights or

startups will actually have access to the 5G

Ventures, told the

hardware infrastruc-

Wall Street Journal.

respect.

The first beneficiaries of 5G

Both children and adults could benefit from better education based on AR/VR

ture, suggesting that he is not that optimistic in this

bus stops.

INDUSTRIES THAT COULD BE TRANSFORMED BY 5G At present, the economies that

experiences. The new tools could be helpful for the training of students and specialists in high-risk fields such as medicine and avia-

networks will be living in densely populated

have made most progress in the 5G race are

tion. Meanwhile, states and companies will

cities, and such locations are also ideal for

China, South Korea and the US, according to

also have to solve the security challenges

development under smart cities principles.

a report by CTIA, the association represent-

stemming from the massive increase of de-

ing the wireless communications industry in

vices connected to the internet. Some of the

increasingly urban Romania. Over the next

the US. Globally, there are just five compa-

fears are that hackers could turn autonomous

20-30 years, more and more of the popula-

nies that provide 5G radio hardware and sys-

vehicles, medical procedures or other devices

tion will migrate to cities – people who will

tems to telecom operators: China’s Huawei

into weapons against people.

“This change will be taking place in an

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

28 EUROPEAN UNION

The new European Commission: A weak leadership to pilot the EU boat through the storms A new European Commission is preparing to take the lead of the EU, at a tense moment dominated by Brexit, a looming economic recession and a trade war, and its composition is generating more concern than trust.

By Sorin Melenciuc Federal Republic is suffering, which is totally irresponsible,” he added, cited by Politico.eu.

Her priorities at the head of the European Commission have not managed to convince many observers as she seems to focus on topics such as climate change or gender parity but has little to say about the severe issues of competitiveness in the EU or the concerns regarding migration, debts or the economic downturn. Her opening programmatic speech to the European Parliament also raised some eyebrows.

“Von der Leyen ticks many of the right boxes, even if her nomination was the result of a complex series of compromises. Yet, alongside the general sense of relief that EU leaders managed to agree on a candidate, a nagging doubt remains as to whether Europe will really have the best person – and team Ursula von der Leyen was picked because she is generally seen as harmless

M

– at the helm,” Dominique Moisi, a special adviser at the Institut Montaigne in Paris, wrote in an article published by Project Syndicate.

However, the expert underlines that the

ost observers have already pointed

THE RESULT OF COMPROMISE

out that the new European Com-

Von der Leyen, a weak leader with weak sup-

EU has a history of questionable leaders

mission seems to be far weaker

port even in her own country, was picked be-

and that people should not have very high

than the previous one - a sign of a decline in

cause she is generally seen as harmless. The

expectations from the new president of the

the quality of leadership in Europe.

German press claimed she plagiarized parts of

executive branch.

On July 16, 2019, the European Parliament elected Ursula von der Leyen as the future president of the European Commission. But

her PhD thesis, and many political leaders in Germany have low expectations from her.

“Von der Leyen is our weakest minister.

“From José Manuel Barroso – a man notable mainly for his unique ability to say nothing in ten languages – to Jean-Claude

she was not the first choice for the job: the

That’s apparently enough for her to become

Juncker, Europe’s top position has been filled

initial “lead candidate” had been Manfred

Commission president,” former European

by remarkably unexceptional leaders. The

Weber, the leader of the European People’s

Parliament President Martin Schulz said in a

resulting leadership deficit has hurt the EU

Party (EPP) in the European Parliament since

tweet on July 2.

badly by reinforcing a growing sense of alien-

2014. Von der Leyen was elected following

Her mandate at the head of the German

a complex series of compromises that were

Ministry of Defence is also considered a fail-

focused on who should not be at the helm of

ure, even by many of von der Leyen’s fellow

the EU rather than on who would actually be

Christian Democrats.

the best choice.

“The Bundeswehr’s condition is cata-

ation between the continent’s citizens and its elites,” Dominique Moisi said.

But he warned that the EU was facing major challenges and needed competent leaders, escaping a long tradition of picking its leaders

strophic,” Rupert Scholz, a former defense

mainly on the basis of their limitations as

woman to hold the EU’s top position, and the

minister, wrote before von der Leyen was

national leaders wanted to make sure they

first German to do so since Walter Hallstein in

nominated to the EU’s top post.

had no rivals in Brussels.

Ursula von der Leyen will be the first

the 1950s and 1960s.

“The entire defense capability of the

“With Europe now facing major external

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

30 EUROPEAN UNION

and internal challenges, from the rise of Chi-

with serious integrity problems. Among them

proposed in a highly non-transparent manner

na to the spread of populism, it must finally

Sylvie Goulard, accused of exactly what [the

by Romanian PM Viorica Dancila, who did not

switch gears and start selecting its leaders on

former PSD leader] Dragnea did, but forgiven

officially announce her choice and did not

their merits,” Moisi added.

for returning the damage, and Didier Reyn-

consult with any relevant stakeholders.

ders, the former Belgian foreign minister, ac-

According to the local press, Plumb is a

QUESTIONABLE CANDIDATES

cused of corruption and money laundering,”

personal friend of Dancila and was a loyal sol-

But the word “merit” does not seem to ap-

Lucian Pirvoiu, a correspondent in Brussels

dier of her party, and this apparently ensured

ply to most candidates proposed by the EU

for the Romanian public television, wrote on

her nomination.

Member States.

his Facebook page.

The EU system allocates to each Member

It is still unclear who will replace the two

MAJOR CHALLENGES

State a position within the European Com-

rejected candidates, but this situation casts a

Ursula von der Leyen will formally take

mission – and this principle means that the

shadow over the future Commission.

the helm of the European Commission at

Commission includes 27 seats, one for every member state (without the United Kingdom,

“If during the hearings, there is a problem accepting any of the commissioner’s

midnight on October 31, the precise moment when Britain is due to leave the EU.

which is due to leave the EU at the end of October). Among the 27 proposed candidates (including Ursula von der Leyen), 11 are already raising integrity questions.

The most serious concerns were raised regarding Rovana Plumb (Romania), Laszlo Trocsanyi (Hungary), Sylvie Goulard (France), and Didier Reynders (Belgium).

On September 26, in an unprecedented move, MEPs in the European Parliament’s legal affairs committee (JURI) rejected Rovana Plumb and Laszlo Trocsanyi for conflicts of interest.

The decision blocked the two candidates’ planned hearings in front of the relevant European Parliament committees, which would have been the next step in becoming a EU commissioner.

Romania’s Rovana Plumb was nominated

by Ursula von der Leyen to be EU’s Transport

candidates, the changes will be requested at

commissioner, but a large loan she took out

that time,” an EU parliament spokesperson

ment for the EU as the continental bloc loses

from an unknown individual, which she later

recently said.

one of the major world economies.

donated to her party (PSD), made MEPs doubt

This may prove to be a key, redefining mo-

But there are other challenges for the new

the accuracy of her financial interest state-

SELECTION PROBLEM

Commission: boosting the EU’s competitive-

ment. Plumb was rejected in the legal affairs

These troubles in the EP committees highlight

ness on the global scene, facing the economic

committee by 15 votes to 6.

a key issue: how are candidates for the EU’s

downturn already affecting large economies

Although the two candidates still had

top positions really selected in their home

such as Italy and Germany, facing migration

hopes that the JURI committee might reverse

countries? Is there a transparent and merit-

and finally defining the bloc’s future.

its decision, on September 30, MEPs issued

based selection procedure? Is there a vote for

a final rejection decision, claiming that they

the candidates?

were “unable to exercise their functions in

In fact, there is no standard procedure and

But before the future, there is the troubled present. A recent analysis by Stratfor indicated four major challenges for the EU

accordance with the Treaties and Code of

the government of each Member State pro-

in this period: domestic constraints in the

Conduct.” Many say that this has been a very

poses its candidate without having to explain

eurozone’s largest economies that limit their

poor start for the new Commission.

why or how it made the choice.

ability to cooperate at the continental level,

“The future European Commission looks

In some cases, like in Romania or Hungary,

nationalist and populist political movements,

like it’s going to be a catastrophe, even with-

the proposed candidates happen to have a

major sources of economic risk (trade dis-

out Rovana Plumb and Trocsany. The fact

close relationship with the prime ministers of

putes with the US, Brexit and economic fragil-

that Rovana Plumb and the Hungarian were

those countries. In Romania, Rovana Plumb

ity in Southern Europe), and the domestic

rejected by the JURI committee is a positive

was never the subject of any procedure in Ro-

and external pressure to limit Chinese access

thing, but in total there were 11 candidates

mania, neither good or bad. She was simply

to strategic technology.

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

32 MACROECONOMY

Economic growth remains solid in CEE region and Romania In 2018, economic activity in the CEE region continued the solid expansion that started in 2017.

This was especially the case for Poland, Hungary and Latvia, which recorded GDP growth rates close to 5 percent. Other countries, including Romania, Estonia and Bulgaria, experienced a weaker pace of growth. Despite the differences between countries, the overall economic growth in the CEE region remained solid with 4.3 percent in 2018, after 4.6 percent in 2017.

By Aurel Constantin recorded revenue improvements (in comparison with 80 percent in 2017 and 63 percent in 2016).

“However, various challenges caused net profits to decrease by 1.6 percent, to EUR 30 billion. Low unemployment and declining working population trigger labour shortages, which have become a major challenge to companies in terms of daily operations and potential expansion. Not only growing wages but also rising input costs have increased companies’ operational expenditures, eroding profits as a result. Competition is getting more intense, resulting in low margins which are not able to offset higher costs,” adds Daly.

“The 2018 edition of the Top 500 CEE shows a positive evolution of the big companies operating in Romania. The main driver of this evolution remains domestic consumpThe automotive sector remains strong in the top 10, represented by well-known brands

“

tion, which accounts for 63 percent of the GDP. Amid the widespread improvement of the labour market, the reduction of unem-

The main drivers were private con-

employees, the companies’ frameworks, sec-

ployment by 4 percent at the end of last year

sumption, increasing fixed asset invest-

tors and markets, as well as the new Coface

and the increase in minimum wage in 2019

ments as well as exports, which were

company credit assessments. The economic

will continue to boost domestic consumption,

less dynamic than before but still expanded,

development of the CEE Top 500 is represen-

but it is estimated to have a less accelerated

despite the eurozone slowdown,” states Grze-

tative of the market trend in the entire region.

rate in the next period. The lack of workforce remains a concern for companies, which puts

gorz Sielewicz, Regional Economist at Coface

constant pressure on costs with wages. In

upgraded Croatia and Slovakia, following a

TOP 500 PLAYERS: INCREASE IN TURNOVER AND RECRUITING, LOSS IN NET PROFIT

series of Country Assessment upgrades in the

“Analyses show that the favorable economic

can benefit from a necessary momentum for

previous year.

environment was beneficial for the region’s

development in order to reach the Top 500

The international credit insurance compa-

500 largest businesses, which translated into

CEE in large numbers, but at the same time

ny presented its eleventh annual study on the

higher revenues,” explains Declan Daly, CEO

they must be prepared for the challenges

500 biggest companies in Central and Eastern

of Coface Central and Eastern Europe. The

of an economic global environment that is

Europe – the Coface CEE Top 500. It ranks

cumulative turnover of all 500 companies

increasingly affected by political risks,” said

businesses by their turnover and additionally

increased by a solid 9.6 percent to EUR 698

Eugen Anicescu, Country Manager, Coface

analyses further facts such as the number of

billion. 78.8 percent of the listed businesses

Romania.

Central and Eastern Europe. In 2018, Coface

these conditions, big Romanian companies

www.business-review.eu October Business Review | May 20162019

MACROECONOMY COVER STORY 33 14

BIG BUSINESS IN POLAND AND IN THE AUTOMOTIVE SECTOR

compared to the previous year reflect the

Poland is home to the largest businesses in the

to cyclical slowdown, increased protection-

ent in the region varies from around 60 in

region, with an aggregated turnover growing

ism and structural industrial changes, includ-

Slovakia and Bulgaria to 139 in Poland. While

year by year, the recent study confirms. The

ing investments into innovations and changes

Poland is the biggest economy, the ratio

top companies in the Coface publication are

in consumption behaviour.

between Fortune Global 500 companies

well known from previous rankings. Polish oil

global downturn of this sector. It suffers due

The third sector on the podium is non-

lic count 139 and 111 respectively.

The number of these global majors pres-

present and population size is much higher

refiner and petrol retailer PKN Orlen remains

specialized trade. Like the year before, the

in Slovakia, Hungary and the Czech Republic.

unbeaten at the top with a 15 percent increase

main driving force of CEE growth was house-

This correlates with the very high exports-to-

in turnover. The Czech Skoda Auto (2nd), the

hold consumption, which accelerated further

GDP ratio prevalent in these three countries:

multinational oil and gas company MOL Hun-

in 2018 thanks to low unemployment and

97 percent in Slovakia, 87 percent in Hungary

gary (3rd) and retailer Jeronimo Polska (4th)

growing wages. This positive impact of solid

and 79 percent in the Czech Republic. Bul-

defended their positions from the previous

demand is dwarfed by the difficulties experi-

garia follows neatly on both these measures,

year, all with increases in revenue.

enced in this sector: the increasing wages of

with 65 percent. Romania and Poland have

The automotive sector remains strong in

employees and labour shortages paired with a

lower ratios – 42 percent and 55 percent

the top 10, represented by well-known brands

still price-sensitive client base and high com-

respectively.

like Czech Skoda Auto (2nd), Volkswagen Slo-

petition are exerting pressure on margins.

vakia (5th) and Audi Hungary (7th). Compared to the previous year, Volkswagen Slovakia

“Supply constraints, including labor short-

“The quantitative development of the real estate market came naturally as a result of

ages, a high capacity utilization, rising input

Romania’s accesion to the EU, but the qualita-

moved up the ranks thanks to a robust increase of turnover of 37.5 percent.

Audi Hungary also recorded a modest 1.1 percent increase in revenues. costs, and the impact of external slowdown

tive growth is closely linked to the increase in

SECTORS: POLE POSITION FOR OIL & GAS, FOLLOWED BY STRONG AUTOMOTIVE & TRANSPORT SECTOR

(direct and indirect) are all worrying compa-

activity among the largest and best perform-

nies operating in the CEE region. Household

ing companies in the world. Whatever hap-

consumption is expected to remain the big-

pens over the short or medium term, given

The three key sectors represented by the

gest driver of growth, although the limited

the caution regarding the global economy,

largest companies in the region (automotive

acceleration of fixed asset investments and

over the longer term we can expect to see

& transport, oil & gas, non-specialized trade)

weaker exports will decrease GDP growth.

lower yields for office or industrial properties

continue to account for almost 60 percent of

Nevertheless, the scale of slowdown will be

thanks to these bluechip tenants, which will

the total generated revenue. However, all in-

limited: Coface forecasts that the average

raise the bar in the local economy,” said Silviu

dustries contributed to the turnover increase,

GDP growth of the CEE region will weaken to

Pop, Head of Research at Colliers.

with the main contributors being the energy,

3.6 percent in 2019 and 3.2 percent in 2020,”

automotive and trade sectors.

adds Grzegorz Sielewicz.

The analysis of FDI flows over the last decade and a half suggests high numbers of Global Fortune 500 companies from the

Net profits showed a positive development only for some sectors, with rises between 4.6

POLAND ALSO LEADS IN FORTUNE 500

Automotive, Industrials, Food, Beverages &

percent (wood & furniture) and 41.9 percent

As Fortune Global 500 companies went out

Tobacco, Telecom & Media and Transporta-

(non-specialized trade). The construction

this year, it was interesting to see how many

tion sectors across the region. Technology,

sector was again the one that struggled the

of the biggest companies in the world were

interestingly, is over-represented as well.

most, with a net loss of -146 percent, despite

present in CEE countries. According to real

This is encouraging for the region’s future

revenues increasing by 10.6 percent.

estate consultancy Colliers International’s lat-

positioning in the world economy.

Automotive & transport lost the leading

est “FDI into CEE infographic”, more Fortune

Romania follows the trend, with Automo-

position it had in the previous year. Company

Global companies located in the CEE-6 will

tive registering the highest numbers – 14

revenues increased by 7.6 percent, while net

increase demand for commercial real estate.

companies – followed closely by Food, Bever-

profits slumped by 11.7 percent. The weaker

Romania now counts 105 companies out of

ages & Tobacco and Technology companies

results of the automotive and transport sector

the global top, while Poland or Czech Repub-

(12 both).

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

34 INTERVIEW

Brain power is the digital world’s greatest asset In order to find out more about Cognizant Softvision and their view on the digital revolution and the world we talked to Malcolm Frank, President of Cognizant Digital Business, and Andres Angelani, CEO of Cognizant Softvision.

By Aurel Constantin

Frank Malcom, Cognizant Digital Business

Andres Angelani, Cognizant Softvision

Why is Cognizant Softvision, a Cluj-based company, organizing an event in Bucharest?

Frank Malcolm: Cognizant Softvision is very

structure, the culture, and it’s built into the

tion system or flight operation system for

universities, as the main training platforms

an airline. Those are huge systems of record

have a much stronger computer science base

and that is where the automation is going to

and we can build on that. We think that an

occur. But if you look at how much software

well known in Cluj, as it has a connection

engineer is more like a creative technologist.

is going to be needed to actually create this digital experience you’ll see that it is going

to the university system and the business

to be a massive undertaking and will need a

need to have a network here, bring together

When are we going to see machines that are able to write software like a human?

Frank Malcolm: The construct of the algo-

all the business partners and reach out to the

rithms is already there. The way you build

when programmers will go away, they would

community. But if you look at the IT industry in Bucharest, it is four times the size and we

creative process. In the meantime, if you go to Google, Facebook or Amazon and ask them say that this is the weirdest question they’ve ever heard. Some will disappear, but not all of them.

Our view is that

broader community. This is the reason we

up an engineer, a creative technologist, is

we are in a panic and that it is caused by the

are organising the 2019 Programmers’ Week

very unlikely to be replaced, but the factory-

fact that we don’t have enough people. And

Conference here and we are planning to open

made developer who knows how to develop

that is actually why we are here.

offices as well.

code in a procedural way has already been

Andres Angelani: If we take art for example,

Andres Angelani: It is an outreach to the

replaced. Machines can produce code now.

we can probably build a mathematical model

community here. Romania has all the right in-

There are still massive back-end systems that

to create a painting. But you cannot replace

gredients for a thriving IT industry. It has the

will never be replaced, such as the reserva-

the way you feel when you paint – it is a very

www.business-review.eu Business Review | October May 20162019

COVER INTERVIEW STORY 35 14

human thing. We can try to model that using

model is to go into your privacy and give your

great news for the next generation of Eastern

a computer code, but we are light years away

information away. That is the culture of that

Europe; they have the means of production

from that. We don’t think that the creative

institution. So, when Libra came along, peo-

and the talent and it’s now part of the cultural

element is replaceable. At least we haven’t

ple thought they were going to give all their

imagination. It is the same in the United

found a way to replace it.

private financial information to an organisa-

States; while people living on the coasts have

Frank Malcolm: Speaking of replacing

tion whose core business model is to share

changed, the ones in the middle of the coun-

humans with machines, it is interesting to

that information. All the changes that we are

try have not.

see that the most industrialized and highly-

going through are huge; they are bigger than

automated countries, like Japan, South Korea

we realise. We may look back in 2030 and

or Germany, are the ones with the lowest

point to 2018 or 2019 and say “oh, that made

unemployment levels.

all the sense in the world, but when we were

What is Cognizant Softvision doing in fields like Artificial Intelligence?

Frank Malcolm: We focus on applied AI.

in the middle of it we didn’t understand it.”

The time of just talking about it is pretty

How far into the Industrial Revolution 4.0 are we today?

Andres Angelani: As far as Revolution 4.0

We’re going through shifts of the technical,

much over. Applied AI manifests itself in two

economic and political foundations. They’re

places: one is customer intelligence and the

all going through these renegotiations and

second is operation intelligence. Customer

goes, I think we are in the middle of it. We are

transformations and it’s all due to digitaliza-

intelligence is how we help a hundred-year-

now emerging and what we are trying to do is

tion. In the industrial world, the raw assets

old company play the FAANG (Facebook,

maximise that for all. We need to put that tal-

were oil and steel. Some countries were huge

Apple, Amazon, Netflix and Google) game.

ent into the middle of the business in order to

beneficiaries of these geographies. If you look

If you look at Netflix, Amazon, Google, they

prepare for the future, otherwise the growth

at the United States at the time, they had the

are all “watching” us. The good thing is that

are going through pilots, doing prototypes,

home-field advantage, as they had oil and

they give us the right things seen through

trying new things. But we’re actually seeing a

steel, the foundation to move ahead in the

the patterns. So we work with a lot of clients

crisis inside the executive teams in traditional

industrial world. The digital world’s raw asset

on customer intelligence, like big retailers

industries like big banks, insurance compa-

is brain power. And we can all get our hands

trying to replicate the Amazon experience in

nies, manufacturers, because they have been

on these tools and assets, but the winning

a physical space.

talking about digitization for five years now.

factor is the talent. That is going to be the

So they sit on the board and someone asks a

distinguishing characteristic in this race.

simple question: how will this be reflected

I travel a lot and I see a lot of patterns. There

in the revenue? How do we increase margins

are communities around the globe where

through this? The managers all start staring

technology has entered the culture and it has

Where do you see Cognizant Softvision five years from now? What about the general economy?

Frank Malcolm: Generally, I am quite opti-

at their shoes because it is still hasn’t reached

gone right through to the education system.

mistic. Softvision has been working for the

the core of a lot of these businesses. And they

That has been the case in India for the past 20

Silicon Valley economy, for the companies,

are really scared. I played a game with a client

years – there is this awakening, the smartest

building products for them. But that is just 5

and asked: if Google decided to come into

kids in school no longer become doctors or

percent of the market. The other 95 percent

your line of business, what would you do?

lawyers; they go straight into information

is just standing around this 5 percent square.

That scares the heck out of people because

technology. And we’ve started to see this in

And every company outside the square needs

they wouldn’t be able to stop it.

Eastern Europe as well. People here are talk-

to get this digital capability. For us it’s just

ing about Old Europe and New Europe, but

meeting that challenge on how to get those

Facebook announced the development of Libra and everybody went crazy. Why? Frank Malcolm: It’s a matter of trust. If a

the East is the new. If you look at universi-

companies to turn digital. As for the overall

ties in Spain, Italy, France, the best kids are

economy, we will have a recession in 2020 or

not going into technology, they still want to

2021. But a storm in nature is sometimes good

big bank had announced that, people would

go into banking, they want to be doctors or

as the trees that need to die are removed. The

have been a lot more open to it. Facebook’s

lawyers or work in government. I think that is

same can be said about companies.

will stall.

Digitization is happening even if we don’t see it.

How far off is the digitization of all businesses?

Frank Malcolm: It is not that far. A lot of our clients

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

36 IT

IT companies recruiting in Bucharest, the biggest professionals market from Romania The IT industry is in full swing in Romania and the deficit of specialised IT workforce, estimated at over 15,000 employees per year, is pushing companies to expand to every IT centre they can find. While centres like Cluj, Timisoara and Iasi have been stretched to their limits, many companies are opening offices in or around Bucharest in order to find more people.

By Aurel Constantin pants this year. As Untold’s 2019 “Innovation Sponsor,” Cognizant Softvision showcased its brand and capabilities to attendees by designing the festival’s smart assistant info point chatbot.

“Romania is a hotbed of digital innovation with some of the best design and engineering talent anywhere,” said Malcolm Frank, President, Cognizant Digital Business. “Our expansion continues to enhance our reputation for quality, sustainability and healthy business development over the last two decades. We’re building some of the most engaging software products for the world’s leading companies. We have helped transform the ways companies conceive, develop

C

Cognizant Softvision specialists from Bucharest Studio attending Programmers’ Week

and pursue business outcomes through software. Here, the smartest engineers can take on their next big challenge and grow

ognizant Softvision, a global leader in

from some of the best and brightest while

their careers while working on transforma-

product engineering, organised the

challenging them to create groundbreak-

tive projects for many industries.”

2019 Programmers’ Week Conference,

ing solutions that use some of today’s most

one of Romania’s largest technology events in Bucharest last month. Activities included

sought after technologies.”

Softvision is a software company founded

The company is expanding its Romania operations to meet demand for its digital development and transformation solutions

four days of technology discussions, the 256

by Romanian entrepreneur Laurentiu Russo

used by leading companies in financial ser-

Conference and the largest Coding Contest

in 1994 and bought by US-based Cognizant

vices, insurance, retail and travel, and other

organised in the country to date. The first

last year in a transaction valued by Reuters

sectors. At least 500 new positions were

edition of the event took place 5 years ago in

at USD 550 million. Romania has become a

added for creative technologist roles and are

Romania, and last year Programmers’ Week

major hub of Cognizant Softvision’s global

expected to be filled by the end of the year.

was available to Cognizant Softvision associ-

network of more than 3,000 product, design

With approximately 1,700 employees now

ates around the globe.

and engineering professionals in 30 studios

in Romania, Cognizant is already recognized

across 9 countries on five continents. Cogni-

as one of the country’s leading technology

business, and business is technology,” said

zant reported USD 16.13 billion in revenue in

employers, ranking 19th among the top 100

Alin Turcu, Mobile and Artificial Intelligence

2018.

employers in July 2019, across all industries.

“We live in an era where technology is

Community Manager at Cognizant Softvision.

The merger of Softvision and Cognizant

In addition to new jobs, Cognizant’s digital

“We are pleased to create a bridge between

has created one of the world’s top digital en-

engineering division plans to open design

the business and technology communities to

gineering companies and a leader in software

studios in key metropolitan centres like Bu-

encourage innovation and generate ideas that

product development. The new company

charest, Iasi and Timisoara. The US company

transform not only businesses, but society as

brand was officially launched in August at

is ranked 193rd in the Fortune 500 and is

a whole. Through Programmers’ Week, we’re

Untold, an annual European music festival

listed among the most admired companies in

offering developers the opportunity to hear

which attracted more than 350,000 partici-

the world.

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

38 RIDE SHARING

Ride-sharing services hit full throttle With the accelerating growth of electric scooter services such as Flow, Lime, and Wolfe, and their increasing impact on Bucharest’s citizens, alongside ride- and car-sharing apps, Romanians have more and more options when it comes to reaching the office or getting home after a night out.

By Romanita Oprea strategic positioning. Our promise is to offer our passengers the shortest car response time and the best price for a quality service,” said Ivona Babarelu, head of marketing at Clever, at the time.

Through the research, the agency discovered that few of the app’s users managed to tell the difference between taxi companies and Clever and that most of them associate the idea of “taxi” with aspects correlated to motivations and behaviors of a functional nature (a taxi represents a major transport service that gets one from point A to point B at the necessary time). Therefore, believes the firm, Clever is the knot between you and the people that you meet, with whom you spend time, those you care about. Clever is a people connector. From here came the tagline “Go”.

Since the new positioning, Clever is a unique app on the Romanian e-hailing market The alternative ride and car sharing solutions app are a big hit among Romanians

W

because it is the only product that offers both ridesharing and taxi services in an integrated platform. Clever covers 30 cities in Romania

ith a more regulated market, ride

brand Clever, alongside a campaign image.

and is expanding its portfolio in offering

sharing in Romania is becoming

Based on rigorous research, in partnership

ridesharing alternatives to these cities and it’s

increasingly popular, with more

with D&D Research, the agency said it had

the is most successful among users in Cluj-

and more Romanian choosing the alternative

found the right insight to enable a correct

Napoca, Iasi, Brasov, Constanta, Oradea and

services over driving their own cars or taking

brand positioning. “In the last five years

smaller towns in Romanian where it is the

public transport. And the advantages are clear

Clever has become the leader among taxi

only e-hailing app for drivers and passengers.

to see. From the ease of using an app and just

booking apps in Romania. Our vision is for

For 2020, the marketing representative said,

jumping in someone’s car and enjoying your

urban mobility to be easily accessible by any-

Clever wants to see more solutions for urban

own personal space, to avoiding the costs of

one; no matter the price, waiting time or loca-

mobility being developed and a smarter city

vehicle ownership and the hassle of finding

tion, transport should be something simple

where every means of transport is connected.

a parking space in a crowded city, the new

and fast. Through the launch of the non-taxi

“The future is about freedom, the freedom

ride-sharing services are here to stay and give

service, we’ve kept the promise of security

of movement and options. Let’s imagine a

consumers an easier journey each day.

and we have grown the number of available

revolution. A revolution that will change the

cars. In this context, Clever’s rebranding and

way one sees and accesses mobility. A future

A REBRANDING BOOST

the entire communication campaign came

where your car is there where you need it

In February, the advertising agency DDB

as a natural step. Clever aims to continue

right now. Where parking is there where you

Romania undertook a new positioning for the

to grow, making sure that we have the right

want it to be right now. Where you’re free to

www.business-review.eu October Business Review | May 20162019

RIDE COVER SHARING STORY 39 14

move through your city and your community

services to choose from, in order to give them

1 million. The service was initially avail-

the way you want, whenever you want, at an

the best solutions for moving around the

able in Cluj-Napoca, followed by Bucharest.

accessible cost,” added Babarelu.

city. Also, Uber Green in Bucharest is the first

“Since we launched the business in 2015, our

Uber product of its kind in CEE,” said Nicoleta

revenue has grown by 50 percent each year,

ket was the transformation of Taxify into Bolt.

Schroeder, head of Uber Romania.

compared to the previous year. We expect

Taxify, the ride-hailing company from Estonia

In this context, the company says it welcomes

2019 to follow the same ascending trend and

backed by Didi and Daimler and now active in

competition, considering it another reason

even exceed the revenue growth by 50 per-

Another important rebranding on the mar-

to push to improve

cent. The future looks bright for car sharing

its services. “The

in Romania. We are the first and biggest car-

growth of the car-

sharing service in Romania. We offer users

sharing industry has

a fleet of over 160 cars which they can drive

impacted our busi-

anytime, anywhere, by using the GetPONY

ness in a good way

app. Our aim is to help create the city of the

because together we

future, with less pollution, less traffic, in

improve the cities

which people spend less on transportation

that we operate in.

but enjoy all the comfort a personal car has

Moreover, it has

to offer,” said Diana Otelea, chief financial

helped users see the

officer at Pony Car Sharing.

benefits of technolo-

Moreover, looking at other services that

gy-driven transpor-

provide ridesharing, the Pony Car representa-

tation services, and

tive believes that they are complimentary and

engage with them

improve the consumer’s experience.

in order to try other

And, for the moment, the company’s

services as well. I am

main challenge on the market is to promote

excited about 2020.

the idea of sharing. In Romania, the draw of

30 countries, removed “taxi” from its name

We have worked hard to have the service well

ownership is still very powerful. In order to

and became Bolt, the name that it has been

defined inside the law so we could pursue

build a long-lasting, reliable infrastructure

using for its new electric scooter service, to

more and more lines of business to support

consumers need to understand the advan-

double down on providing multiple transpor-

the cities in which we operate,” concluded

tages of the sharing economy. In this context,

tation options beyond private cars. Tapping

Uber’s representative.

Pony has made it its mission to educate the

the basic meanings of “bolt,” the new name

The latest company to enter the ride-sharing

public in regards to how a car-sharing service

implies speed, as well as electricity.

Romanian market is Yango, the e-hailing app

can change our cities for the better.

“We are bullish that the future is fully

owned by the Russian company Yandex. At

“Currently our service is available in three

electric and so we wanted a name that moved

the moment of launch, the company had 55

Romanian cities: Bucharest, Cluj and Alba

us away from the combustion engine,” said

partners in Romania and around 3,000 regis-

Iulia. We are focusing on further developing

Markus Villig, CEO and co-founder, quoted by

tered drivers. Moreover, Yango uses its own

the service in Bucharest, where more cars

TechCrunch.

cartography and direction system mapping,

are needed in order to keep up with demand.

navigation and machine learning technology.

In the future we are definitely planning on

COMPETITION MOVES UP A GEAR

“We believe that our users will appreciate our

expanding to other important cities as well,”

Probably Bolt’s biggest competitor interna-

unique functionalities such as ordering a car

concluded Pony Car Sharing’s CFO.

tionally, but also in Romania, Uber, is staying

for someone else, reserving several cars from

And it looks like the competition is rising

strong on its positioning. “We are currently

one phone at the same time, etc,” said Andrei

on the sector with the local launch of Spark,

undergoing a complex transition period

Voicu, regional director Yango Romania and

a company with Lithuanian and Bulgarian

required under the new alternative transport

Moldova, at the time of the launch.

shareholders. Spark Romania describes itself as an alternative transport service, a car-shar-

law. Uber is a multimodal urban transportation platform through which riders all over

STARTING FROM CLUJ-NAPOCA

ing app oriented exclusively towards electric

the world can find an extended service offer

The first Romanian car-sharing service was

cars. With headquarters in Vilnius and Sofia,

in the same place: electric cars, carpooling,

introduced on the market by two young

Spark comes to Romania “to lighten Bucha-

bicycles, taxis, car-sharing, helicopters and

entrepreneurs – Demis Ghindeanu and Iulian

rest’s traffic and free it from the pollution and

public transport – so that we can provide

Padurariu – who got the idea after using a

unnecessary traffic noises”.

many alternatives to the personal car. By in-

similar service in Austria. “Get Pony” was

tegrating many types of transportation, Uber

launched with a EUR 100,000 initial invest-

Caby, which is available only in Iasi, offering

supplies its riders with a large diversity of

ment which in two years’ time reached EUR

also only electric cars.

The local car sharing scene is also home to

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

40 TOURISM

The alternative tourism experience If Lonely Planet guides are too old fashioned for today’s world travelers, now we have apps that promise us the best of a traveling experience. Does mixing with locals seem a good idea on vacation? Business Review talked to Airbnb representatives to find out how such experiences work.

By Oana Vasiliu

Are you an explorer kind of traveller?

economy, this concept that is

W

ties for millions of Europeans and contributes

platform. And this is just the beginning,

now a way of life for many people

to sustainable, healthy tourism that puts

taking into consideration that the service

around the globe. One of the problems in

locals at the heart of 21st century travel. We

was launched locally in March 2019. So what

transitioning to a circular economy is that

know travelers are looking for new, unique

has Airbnb actually done for tourism? An

of unnecessary, excess production. In short,

things to do when they hit the road. Airbnb

offline innovation, offering more than a tour

we own more stuff than we need. That’s

Experiences is meeting that demand, offering

or an activity. “We’re focused on making

where sharing platforms come in, generating

a new way for people to experience a des-

the experiences themselves better. Airbnb

income for owners and squeezing more value

tination or the city they call home,” Airbnb

Experiences was created out of the belief that

out of products, financially benefiting users

representatives told BR.

travel is broken; we want to offer something

e’ve all heard about the circular

on both sides of the rental transaction. And

“Airbnb creates new economic opportuni-

In 2016, the service launched with roughly

active experiences available on the Airbnb

more authentic and less mass-produced by

these sharing platforms offer more and more

500 experiences. Today, over 40,000 experi-

unlocking a different side of destinations

benefits to those using them, Airbnb Experi-

ences are available around the world, while

through the eyes of locals. Experiences on

ences or UberEats, to name a couple.

in Romania there are currently more than 160

Airbnb are defined by access, expertise and

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

42 TOURISM

The Museum of Living Communism in Brasov

striving to create human connection,” note Airbnb officials.

One of the best things is that the platform

Second hand experiences in Brasov

EXPERIENCES CURRENTLY AVAILABLE INCLUDE: Bucharest Night Walkers - The Hip Side offer-

diversifies tourism by bringing the benefits

ing (from 200 RON)

of tourism to neighborhoods that don’t typi-

The Museum of Living in Communism in

cally benefit from visitor spending, divert-

Brasov (from 160 RON)

ing foreign money to the local community.

Unique second hand experiences in Brasov

According to the Healthy Travel and Healthy

(from 80 RON)

Destinations report, the majority of the funds

Romanian cooking class in a local home in

spent on Airbnb flows directly to hosts, who

Timisoara (from 189 RON)

keep up to 97 percent of every Romanian

Bucharest Morning Coffee Tour (from 350

Leu they charge to rent their space. Hosts

RON)

can then spend and reinvest their earnings

Truffle hunting in Transylvania (from 600

in a number of ways, including household

RON)

expenses, rent or mortgage payments, clean-

Sinaia e-mtb Discovery Tour (from 320 RON)

ers, home improvement, healthcare and

Kayak/SUP/hydrobike on a mountain lake in

education.

Cluj county (from 240 RON)

Cooking with a local in Timisoara

“SERGIU AND GABRIEL WERE WONDERFUL HOSTS. THEY TOOK ME TO REALLY INTERESTING AND HIGH QUALITY PLACES THAT I WOULD NEVER HAVE GONE WITHOUT THEM! I REALLY ENJOYED THE WHOLE EXPERIENCE AND THE OPPORTUNITY TO SPEND TIME WITH THE TWO OF THEM. I LEARNED A LOT ABOUT LIFE IN ROMANIA. THEY’RE GREAT AND VERY CONSCIENTIOUS HOSTS!” KATE, NEW YORK

“WE’VE WANTED FOR A LONG TIME TO KNOW WHAT LIFE WAS LIKE DURING COMMUNISM AND ESPECIALLY WHAT LIFE WAS LIKE DURING THE TRANSITION. THIS 3.5 HOUR TOUR WAS AMAZING. OUR HOST WAS LAVI. HE WAS 17 AT THE TIME. WE FOUND HIS INSIGHTS, HIS PERSONAL STORIES, STORIES ABOUT HIS FAMILY AND FRIENDS GRIPPING. WE WOUND UP GOING OVERTIME AND INVITED LAVI TO DINNER WHICH HE ACCEPTED. WE TRAVEL A LOT, ABOUT 9 MONTHS OUT OF A YEAR. THIS WAS ONE OF THE VERY BEST TOURS WE HAVE EVER BEEN ON. MANY, MANY QUESTIONS I’VE HAD ABOUT THE TRANSITION PERIOD AND THE RESIDUAL EFFECTS TODAY WERE ANSWERED. FOR EXAMPLE, WHY DO WE SEE SO MANY SMALL FARMS IN ROMANIA STILL USING HORSE POWER WHEN WE DON’T SEE THAT IN FORMER COMMUNIST BLOC COUNTRIES?” STEVE, HONOLULU

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

44 GASTRONOMY

Cooking up a storm for local food Romanian cuisine is starting to pan out around the world. It may not yet have conquered everyone’s palate, but the industry is serving up some appetizing starters. Recently, a law passed making the first Sunday of each October the National Day of Romanian Gastronomy and Wine. Food for thought?

By Oana Vasiliu drob, polenta etc. (…) On the other hand, there is modern Romanian gastronomy, which is a trend that has begun developing in recent years. It started off with new chefs and restaurateurs who, inspired by international models, trends and experiences, decided to take things one step further and bring home what they discovered. What I see emerging now is an inspiring, author’s cuisine, where each chef does something different and has his own vision and set of principles.”

Chef Andrei Chelaru of Fragment, ClujNapoca, who has recently returned to his local kitchen after an internship at Noma, and another Gault & Millau Great Chef of Tomorrow,

I

Still trying to figure out a definition for traditional Romanian food

adds, “The Romanian gastronomy is exactly like the Romanian people, it has a strong per-

t seems that a constant goal for forward-

two World Wars and 45 years of Communism

sonality. At this moment, it’s finishing a hard

thinking chefs has been reinterpreting

which changed viticulture in Romania, now

winter and embracing a very long spring. (…)

classic Romanian fare in original, one-

our wines are steadily and rapidly growing in

With the influences of globalization all around

of-a-kind dishes. And their attempt wasn’t in

quality and offer a diversity that can and will

us, more often than not, we need to celebrate

vain. The idea of this celebration was initiated

be appreciated by wine lovers everywhere in

our culinary traditions and extraordinary

at the first edition of the National Congress of

the world,” concludes Ioan. Meanwhile, Drag-

wines. At the same time, I think that this is a

Gastronomy and Wine by Cezar Ioan (publish-

omir adds, “We suffer from a kind of self-righ-

great opportunity to educate the new genera-

er at vinul.ro), Chef Nico Lontras (Rare Food

teousness, we repeat that we did not invent

tion, when it comes to amazing local produce,

Services) and Cosmin Dragomir (publisher at

anything, that they are all taken from others,

old recipes and dishes that make your heart

gastroart.ro), with the support of the National

basically ignoring the evolution. All gastrono-

skip a beat.”

Association of Cooks and Confectioners in

mies are influenced, only that purism touches

Tourism.

us, especially in the online discourse, alarm-

and tasty, a culture that originates from the

“Romanian gastronomy needs to be simple

ing odds and sometimes fools. It’s extremely

heritage of each family, different region by

portant – primal – bonds that connect a nation

important to know our identity gastronomy

region. Somehow it exists, but one of the best

and give it a distinct identity. And it’s impor-

and to be proud of it. And that’s also a form

ways to get the true taste of these dishes is

tant for us to know where we come from and

of glocalism. Some say all these influences on

directly from local chefs, who are passionate

to consolidate the links between us and our

local cuisine are a disability; I see exactly the

about cooking and want to share their culture

history,” says Ioan, of the decision to support

opposite: an advantage. Diversity is an asset,

with other people, or other chefs. Speaking

and promote such an idea. “With wines, we

indisputably.”

about Romanian gastronomy, wine and food,

“I believe that food is one of the most im-

still have some grape varieties that are found

Alexandru Dumitru, Gault & Millau’s Chef

we need to discover old recipes and educate

only here – at least one of them being culti-

of the Year 2019, comments: “I believe that

people, promote more local grape varieties

vated here before the Egyptian pyramids were

there are two sides to Romanian gastronomy

and local dishes. It’s a must. We need to be an

built (Fetească neeagră). Feteasca alba, Cram-

right now and we can’t discuss one without

entertaining and educational day festival cel-

posie, Zghihara, Francusa, Babeasca are other

the other. Firstly, we have traditional cuisine,

ebrating local food, wine and culture,” argues

vines known only here that can give birth to

centered around classic recipes with which

Alina Iancu, founder at CrameRomania.ro, a

very interesting and unique wines. (…) After

our people identify, such as sarmale, cozonac,

relentless promoter of national wine tourism.

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

RESTAURANT REVIEW 45

BRUNCH WITH A DIFFERENCE >>> Sheraton Hotel, Calea Dorobanti, 5, 021 201 5000 <<<

L

et’s go to the Sheraton’s first floor

restaurant menus in town due to its high

compotes. I had to try their massive fillet

restaurant. In case you have not

cost. But not here, you can eat as much as

steak, baked in a salt crust. Salt crusting,

been before, it is split into two din-

you like.

like an igloo over the food, is a chef’s best

ing areas. On the left as you enter is their

However I was amazed to see the huge

friend. Even if he falls asleep and forgets

Benihana outlet. Here your order is cooked

long claws of Alaskan King Crab. Discovery

the dish, as long as it is on a low heat, the

in front of you on a Teppanyaki, a flat metal

Channel runs and reruns its program The

meat under the igloo will be perfect and

hotplate. You sit down in front of the Tep-

World’s Deadliest Catch following fishers in

moist.

panyaki hotplate and watch the artistry of

the Barents Sea where numerous fishermen

the chef whilst at lightning speed he cuts,

lose their lives in the storms, just to catch

superb Cabernet under the brand name

chops, spins your dish. It is pure showbiz,

crab. Well, I am heartless, so I am indiffer-

of Zana. It was heavy, but without be-

and well worth the show.

ent to the fate of the fishermen; I don’t even

ing dragged down by too much tannin. A

In the same room there is a sushi

Throughout the meal, we enjoyed a

perfect balance, and bravo House

know their names (hell, they are

for making it the Brunch

just doing their

section, where there were

wine.

job).

30 sushis waiting for you to pick up, or

There was a

better still watch

mountain of

the chef make

duck legs, all

and roll your

tender and

individual

brown.

choice of su-

Something

shi. So now

tells me

let’s move

that next

into the main

week we will be

restaurant.

feasting off

Sunday

duck breast.

brunch is fun-

At this point I

damentally a help

was full, but not

yourself and eat till

smoothies made from a blend of melon,

chocolate fountain beckoned to

is the crab claws, and I got

with a hot carvery. It was a hot Sunday, and I spied a tray of chilled

so greedy Blondie. A

All I want

you burst buffet together them on Sunday!

Then there was salmon in every format,

Blondie and all the kids in the joint. There was every dessert imaginable, as long as it was laced with chocolate, cream and fruit.

orange and passion fruit. Wow, it could not

in vol-au-vents, fresh, marinated… and so

get better.

on. There was a huge cauldron of wonderful

The House has a clear run to captivate

mussels (midii), but enough of the fish. I am

the Sunday brunch market, as the Hilton

soup selection along with their endless

a born again carnivore, so I am hunting for

abandoned brunch last year, and the Radis-

varieties of bread. My eyes fell on a huge

meat. And I was not disappointed. Neither

son relegated brunch to a BBQ around their

platter of oysters on ice. Many years ago

was Blondie who harpooned a pork chop.

pool.

I ate 100 oysters in Galway (Ireland) for a

She professed it to be the best pork of her

bet. I only quit after I ran out of money, I

life. I said, “Dammit woman, it is only pork

engineered the retail price of all the food

could have continued. So I love the little

in wine.” But no. She said it was so slow

I consumed, and I was in credit. Yes, it

beasties, but to help the House, I only took

cooked that it fell off the bone and she was

would have cost more if I had bought it

six of them. Next up was lobster. This used

in awe.

over the counter.

But away to food. I passed on their hot

to be a staple dish when every hotel was

But for me, I had to hit the hot carvery.

competing for your brunch business a few

The chef cooked me a perfect foie gras on

years ago, but it has disappeared from most

toast topped with the traditional fresh fruit

And is it expensive? Well no. I reversed

Go for it.

Michael Barclay Mab.media@dnt.r0

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

46 CITY

Cultural calendar

By Oana Vasiliu

Festival in Sibiu, which will screen 126 films made in over 45 countries from around the world.

Some 46 documentaries divided into four sections will be compet-

Béjart Ballet Lausanne October 12-13, Sala Palatului

Calin Stegerean is the Austrian

and intimate, the material was

ing for awards. The program is

artist’s first exhibition in Bucha-

well received by both fans and

completed by dozens of excep-

Late choreographer Maurice

rest. For Lechner, photography

the media. Tickets start from 99

tional films grouped by their

Béjart was a major part of world

is not just a means of recording

RON.

topics into 12 special themes,

choreography throughout the

a pre-existing reality, but a tool

twentieth century. On October

for creating new images and

12 and 13, Béjart Ballet Lausanne

ideas. With roots in the historical

returns to Bucharest with its

avant-garde, the artist’s pho-

latest contemporary show, which

tos are just the visible part of a

includes “Tous les hommes

reflective process that deals with

presque siempre s’imaginent”

human body metamorphoses in

and “7 Greek dances”. Béjart

relation to the superstructure

always wanted to open up the

represented by clothing, work

ballet world to a wider audience.

tools, and entertainment. Made

Encouraged by the same spirit,

using traditional photographic

Gil Roman and his dancers keep

techniques, without digital inter-

Mathias Eick is one of the most

his work alive, representing it in

ventions, the photographs have

highly regarded trumpeters

A pioneer of electronic jazz, Nils

competitions all over the world,

also occasioned the production

in the new wave of European

Petter Molvaer is a contempo-

major events, official receptions,

of sculptural objects included in

instrumentalists. In 2007 he won

rary wizard of sounds. Nordic

and charity events. Prices start

the compositions, which will be

the prestigious International

poetry melts into the rhythms

from RON 150.

seen in the selection in Bucharest

Jazz Talent award given by the

of electronic music, giving way

for the first time.

Jazz Festivals Organization in

to the hypnotic incantations

New York, and in 2009 a Statoil

that Molvaer’s trumpet harbors

scholarship, the most coveted

in delicate layers, announcing a

in Norway. Musically inspired

journey from which you can only

by Miles Davis, Chet Baker and

return richer. Molvaer has put

Enrico Rava, Eick is a member of

his imprint on more than forty

the Trondheim Jazz Orchestra.

albums in different lineups – with

He plays trumpet, double bass,

the famous Masqualero group,

vibraphone, piano, and guitar,

and in collaboration with artists

his signature sound featuring on

such as Dhafer Youssef, Django

no fewer than a hundred record-

Bates, Lars Danielsson, Eivind

ings. Tickets cost RON 50.

Aarset, Manu Katche and Sidsel

Tina Lechner exhibition Oct 4 - Nov 4, Mobius Gallery

Hooverphonic concert October 10, Hard Rock Cafe

Hooverphonic return to Romania

which will bring to the big screen

Mathias Eick Quintet October 14, Control Club

Nils Petter Molvaer October 21, Control Club

Endresen. A composer of film

on a tour to promote the Belgian

and theater music, he is consid-

Stars, launched last year, which

Astra Film Festival Oct 14-20, Sibiu

marked the debut of artist Luka

This year marks the 26th edition

and courageous European instru-

Cruysberghs as a soloist. Intense

of the International Astra Film

mentalists.

band’s latest record, Looking For

The upcoming show, curated by

today’s hot topics.

ered one of the most inventive