Talent: Romania is struggling to fill vocational vacancies as workers with technical skills leave the country in search of better pay, warn labor market experts including Mihaela Feodorof, founder of career advisory firm YourWay »page 11
ROMANIA’S PREMIERE BUSINESS WEEKLY
INSURANCE
May 21 - 27, 2012 / VOLUME 16, NUMBER 18
PUNDITS PREDICT THAT THE NEXT TWO TO THREE YEARS WILL SEE INSURERS PUT THE FOCUS ON INCREASING THEIR EFFICIENCY AND PERFORMANCE, WHILE REASSESSING DISTRIBUTION CHANNELS »PAGES 8-10
HARVESTING INTEREST IN AGRICULTURE The promise of a bountiful future for Romania’s agricultural sector has attracted the attention – and the funds – of prominent local businesspeople »page 8-9
3Q
NEWS
RESTAURANT
FILM
Shore thing
Recession reloaded
Economical eats
Plant life
In search of highquality food at a bargain bill, BR’s restaurant critic headed to the Hilton for a business lunch » page 12
Our film reviewer was entertained by Adalbert’s Dream, a blackly comic tale set in a factory in Communist Romania » page 14
Valentin Tomsa, GM of SAP Romania, says the firm’s recruitment for its nearshore delivery centers continues apace » page 3
A harsh winter and Euro zone turbulence have sent Romania back into technical recession » page 4
www.business-review.ro Business Review | May 21 - 27, 2012
NEWS 3
NEWS in brief AGRICULTURE Agriculture minister proposes PPP for fruit and vegetable warehouses
ENERGY STEAG buys Dobrogea wind farm from Monsson Group Romanian wind energy developer Monsson Group has sold the Crucea North wind farm project in Dobrogea, near Constanta, with installed capacity of 108 MW, to STEAG GmbH, the fifth biggest electricity provider in Germany. STEAG will invest around EUR 200 million in the farm, which will have 36 turbines of 3 MW supplied by Danish firm Vestas and will transmit the electricity to the grid through a new transformation station near Stupina. The wind farm
QUOTE of the week “An SME is like a woman: it suffers, is adaptable, knows the interests of the market and wins” Andreea Paul, former counselor of ex-prime ministers Emil Boc and Mihai Razvan Ungureanu, at the Capital conferences
Transelectrica net profit plummets 72.8 percent y-o-y… The net profit of majority state-owned grid operator Transelectrica fell by 72.8 percent in the first quarter of 2012 to RON 43.6 million (EUR 9.95 million), while net turnover gained 15 percent to RON 884 million (EUR 201.8 million) in Q1. Operating revenue rose by 17.6 percent y-o-y to RON 891 million (EUR 203.4 million), although the amount of billed electricity on the market decreased by 6.9 percent to 14,650,700 MW. Total revenue was up 9.8 percent to RON 900 million (EUR 205.5 million).
… while Transgaz net profit falls by 11 percent y-o-y The net profit of Transgaz, the stateowned operator of the gas transmission system, dropped by 11 percent to almost RON 173.5 (EUR 40 million) in the first quarter of this year, while the turnover fell by 0.4 percent to RON 455.6 million (EUR 104 million). Total revenue lost 0.5 percent y-o-y to RON 472.2 million (EUR 107.8 million), while expenses climbed by 7.3 percent to EUR 53.9 million in Q1. The operator’s debt fell by 56.9 percent to RON 396.6 million (EUR 90.5 million).
HEALTHCARE MedLife Genesys Arad opens thyroid pathology center MedLife Genesys hospital in Arad has launched the first center of excellence in thyroid pathology in Romania, following an investment of EUR 500,000. Patients with endocrine issues can receive specialized consultations, analysis, X-rays, surgery, monitoring and treatment. A surgical intervention can take between three-four hours and requires two-three days of hospitalization.
IT Romania will not ratify ACTA in current form, says PM The prime minister, Victor Ponta, said Romania will not ratify ACTA (AntiCounterfeiting Trade Agreement) unless the European Parliament takes measures to guarantee the right to privacy.“We will not ratify it until the European Parliament brings modifications that ensure, as is right, the protection of intellectual property rights, but also that the right to private life is not breached,” Ponta told TV channel Antena 3.
Pentalog’s headcount to go up by 150 in 5 months French company Pentalog, which provides IT consultancy and runs software development centers, plans to hire 150 people at its Cluj-Napoca branch over the next five months. The company opened its fifth production unit in Romania at
the beginning of 2011. The company’s 50 employees in Cluj-Napoca are involved in projects of web/e-commerce, ERP, business intelligence and software R&D. In Romania, Pentalog currently has offices in Bucharest, Brasov, Sibiu, Iasi and Cluj. The company also has an office in Chisinau, in the Republic of Moldova.
Software piracy rate in Romania 63 percent last year The software piracy rate in Romania amounted to 63 percent last year, the equivalent of non-licensed software worth USD 207 million. According to a survey carried out in Romania, 38 percent of users admit to using pirated software “all the time,” “nearly all the time” or “occasionally”, while 24 percent say they “rarely” do so. Most users of non-licensed software are men, aged between 18 and 34 years old.
Flanco: Romanian gaming market up 20 percent this year The value of the gaming market will reach over EUR 20 million in 2012, 20 percent up on last year, due to the growth in value of the hardware segment (consoles), games and accessories, according to estimations by IT&C retailer Flanco. The best selling games last year in Flanco stores were Call of Duty: Modern Warfare 3, FIFA 12 and Battlefield 3. Romanians spent an average of RON 150 on a game.
POLITICS Education minister resigns after plagiarism accusations Ioan Mang, Romania’s education minister, resigned last week following accusations of plagiarism, on the grounds that the furor affected the image of the government and education, in the country and abroad. PM Victor Ponta accepted his resignation and appointed Liviu Pop, delegate minister for social dialogue, to the position on an interim basis. Within 45 days, the government will appoint a new minister of education.
STOCK EXCHANGE Property Fund reports RON 1.5 mln loss in Q1 The Property Fund (FP) reported a net loss close to EUR 350,000 in the first quarter of this year, due to a lack of dividend income as companies in its portfolio are starting to declare them only in the second quarter, combined with a lower interest income. The fund’s net profit in Q1 2011 stood at RON 14.7 million (around EUR 3.6 million). Net profit should reach RON 442.5 million (EUR 101 million) in 2012 according to the FP’s budget. The fund’s revenue fell by 59.7 percent y-o-y to RON 13.4 million (EUR 3 million) in Q1, while interest income lost 59.5 percent to RON 7 million (EUR 1.6 million).
Courtesy of SAP
Setting up warehouses for fruit and vegetables would help local farmers get more money for their products and would also reduce final sale prices, said agriculture minister Daniel Constantin. The minister suggested the measure could be implemented through publicprivate partnerships. He added that the authorities can help by stimulating farmers to create and join producers’ associations and by setting up warehouse centers.
should become operational by the end of 2013 and will indirectly create around 100 jobs.
3Q Valentin Tomsa
general manager, SAP Romania How is the recruitment going at SAP ? Since the beginning of the nearshore project, we have hired more than 200 people. We are on schedule with the employment program in Timisoara and also started hiring in Cluj, where we have recruited the first 40-50 people. In Bucharest we are expanding on a new floor . So I believe that we will finish hiring the 400 people sooner than 2014, as initially announced. The workpoint in Timisoara was opened in January but for the one in Cluj we will announce the official opening probably in July. Our employees are very young: the average age is 25 years old. We have focused on opening centers in the west of Romania because we need the German language since we deliver many projects in Austria, Germany and Switzerland. Another plus is the university centers there. Are you considering opening centers in other regions as well? We are considering the possibility of expanding east, and the city of Iasi is probably on the cards. We are still analyzing this move, but if we want to deliver projects in Moldova, Russia and Ukraine, then Iasi will probably be the first option. We run our business based on the concept of a nearshore delivery center. We need to be close to the clients both geographically and culturally so the clients served from Iasi would be from eastern countries. What of the partnership between SAP and Samsung on the Romanian market? At the moment Samsung is our main partner in the mobility area. Currently we have small pilot projects on mobility that our clients are testing but my opinion is that this market will explode. In other countries, the degree of adoption is huge. The mindset is the barrier in Romania. In 90 percent of the cases, applications are seen as something you use once in a blue moon and pay EUR 2 for. So when you come and say you want to do an application that costs, for instance, EUR 15,000, there is opposition. In Western Europe, business mobile applications are used in very many domains: in retail, logistics and distribution, human resources, utilities, banking, and even in healthcare. They first penetrated critical areas, where they are direly needed. I think in Romania it will be the same. otilia.haraga@business-review.ro
www.business-review.ro Business Review | May 21 - 27, 2012
4 NEWS MACRO
IT&C
EU woes and snow plunge Romania into technical recession
Into the red: Romania’s economy has now shrunk for two subsequent quarters
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he economy shrank in two consecutive quarters, dragging the country into technical recession. However, analysts say it will rebound in the second quarter, boosted by a partial wage recovery in the public sector and an apparent improvement of the Euro zone economy, although the domestic currency, the RON, continued to weaken. GDP shrank by 0.1 percent in Q1, according to a flash estimate from the statistics institute (INS), adding to a 0.2 percent decrease in Q4 2011. However, the economy grew by 0.3 percent (gross value) and 0.8 percent (seasonally adjusted value) year-on-year in Q1. The Euro zone economy remained flat in Q1, after having shrunk by 0.3 percent in Q4 2011, and the EU 27 performed similarly, according to Eurostat, the EU statistics office. Analysts said the local economy had dipped due to lower demand in the EU for Romanian exports and the bad weather that engulfed the country in the first two months of this year, closing roads and slowing down economic activity. However, the economy should return to growth in the second quarter fueled by an 8 percent increase of wages in the public sector this June and the return of social contributions to pensioners through to 2013,
after they were ruled unconstitutional earlier this year. “The economy could return to growth if the industry sector is boosted by external demand,” said Dan Bucsa, chief-economist at UniCredit Tiriac Bank. He added that the impact of a good harvest in 2011 did not disappear by excluding the seasonal component in GDP. “Excluding agriculture, GDP grew in Q4 2011 against Q3 2011, and in Q1 2012 against Q4 2011, although it was a slow growth,” said Bucsa. Talk of technical recession is premature as both quarterly falls were prompted by external shocks, according to Mihai Patrulescu, economist at Bancpost. “Low temperatures and heavy snowfalls took their toll on infrastructure and resulted in a broad-based decline of economic activity,” said Patrulescu. “Industrial production, construction and retail sales were all affected.” “We witnessed a brutal correction in consumption from the previous years and we may see it go up by 2 percent in 2012,” said Melania Hancila, head of the research and strategy department at Volksbank. Florin Eugen Sinca, analyst in the macro research and fixed income securities team at BCR, said the economy will re-
turn to growth in the second quarter as household consumption will go up due to the public sector wage recovery, but infrastructure will also be more prominent. “We might witness an increase of infrastructure investment, as building works on major projects are advancing, including with the use of EU funds,” said Sinca. Liviu Voinea, state secretary in the Finance Ministry, said last week that Romania has significant chances to exit technical recession, as the next three quarters will bring back growth due to the improved financial situation of public sector workers and pensioners. Patrulescu said the outlook for Romanian exports has been improving slightly as the Euro zone economy performed better than expected, and this should help the economy to bounce back. Romanian exports fell by 0.4 percent year-on-year in Q1 to EUR 10.9 billion, while the trade deficit widened to EUR 1.7 billion. The share of exports to EU members represented 72.4 percent of all trade. The Ponta government announced last week that a EUR 1 billion credit line from the World Bank will be available from June. The loan will act as a buffer and may be used to cover the budget deficit, which is expected to reach 2.3 percent of GDP this year. The loan has a similar regime to the EUR 5 billion stand-by agreement with the IMF, European Commission and World Bank, and Romania has the option to draw funds only if it needs them. Analysts surveyed by BR predict the economy will grow by around 1 percent this year. The European Commission estimates in its spring forecasts that Romanian GDP will grow by 1.4 percent in 2012, accelerating to 2.9 percent in 2013. Meanwhile, the IMF expects the local economy to grow by 1.5 percent in 2012. The Romanian currency continued to weaken against the Euro last week, but other currencies in the region lost more ground. The EUR/RON rate stood at 4.4433 on May 16, losing 0.2 percent since the start of the week, although it began to pick up towards the end of the week. The RON has lost 0.6 percent since the start of May. BCR estimates the EUR/RON will remain in the 4.4 band for the rest of 2012. ∫ Ovidiu Posirca
Lenovo opens store in downtown Bucharest
Chinese firm Lenovo is considering expanding outside Bucharest
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enovo Exclusive Store, the first shop in Romania dedicated to the products of Chinese company Lenovo, opened last week in downtown Bucharest. Lenovo is the second largest producer of PCs in the world. The store, located at 19B Unirii Blvd, is positioned as a center of exploration of IT technology. The total investment, which amounts to several tens of thousands of EUR, was made in conjunction with re-seller Eurosoft Computers. The outlet covers a surface of 132 sqm, of which half is public space, and, if need be, the space can be extended. Lenovo did not make public any sales target, but its partner, Eurosoft Computers, estimated sales of EUR 500,000 in the first year. The company is also looking at opening outlets in other locations. “Discussions are already ongoing over opening new stores in Cluj-Napoca, Brasov, Ploiesti, Baia Mare, Constanta and Iasi. Since the shops are opened with partners, the distributors, we cannot talk so far about an established budget for them,” said company officials. In Romania, Lenovo has nine employees. The company does not sell computers directly; its role is to help partners, which are independent companies, to sell its products. The Chinese firm opened its first production unit in Europe in Poland in 2008. The company was formed after Lenovo Group acquired the former personal computing division of IBM. ∫ Otilia Haraga
www.business-review.ro Business Review | May 21 - 27, 2012
NEWS 5
LOGISTICS
EUR 200 million to fund industrial park in Turda
About EUR 200 million will be put into the industrial park over the next five years
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onstruction company Graells & Llonch began work last week on a 400,000-sqm industrial and logistics park near Turda, Cluj county, which will require an investment of about EUR 200 million over the next five years. The project is a speculative development carried out in partnership with Europa Capital investment fund, which owns the 55-hectare plot of land on which the project will be constructed. About 95 percent of the sum will come from own funds, said representatives of the two companies. Some 25,000 sqm of warehouse space will be delivered this autumn. Logistics
and FMCG companies have shown interest in buying and renting space in the industrial park but the developer has managed to sign just one pre-lease agreement so far, for 35,000 sqm. Europa Capital bought the land on which the industrial park is being developed back in 2008, Tim Norman, executive director of Europa Capital, told BR. Its position, close to the Turda-Gilau segment of the A3 highway, was one of the main reasons for choosing the plot, he added. “We bought the land for a good price. We don’t think we have overpaid for it in the long term. With an important project that takes years to develop like this one you have to look through the highs and lows of the market. This is why we have waited three or four years now to invest more money – we have no bank debt on this and we are now investing more money to move the project forward,” he said. Regionally, Europa Capital, which is part of the Rockefeller Group, has also invested in Bulgaria where it is involved in a greater number of projects. “Bulgaria has been a much more sensitive country. Its economy is very solid and its real estate didn’t get so hot; it has been much easier to carry out projects there,” said Norman, adding that in Romania landowners, including banks, continue to have unrealistic price expectations. On the local market the investment fund also has a partnership with RPF Development for a residential project in Bucharest for which EUR 200 million is in the pipeline. ∫ Simona Bazavan
FMCG
Danone Romania expects one-digit growth this year
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he local subsidiary of French dairy giant Danone has reported sales of RON 503 million (about EUR 119 million) in 2011, up 5.7 percent y-o-y, while sold volumes were flat. The growth rate is below the figure reported in 2010 when the company’s business grew by 10 percent y-o-y. “Danone Romania is our biggest business in the region and I would say it is also the most successful. The biggest challenge we have so far in the region is Greece,” said Dieter Schulz, who was appointed general director of Danone for Romania, Bulgaria, Greece and the Adriatic countries this April. The decrease of purchasing power continues to be a challenge but, overall, the local fresh dairy market has a lot of potential for future growth, he said, adding that this year Danone Romania expects one-digit growth. Schulz stated that one of his main objectives will be to encourage the consumption of fresh dairy products through health awareness programs so that every Romanian will eat at least one pot of yoghurt per day. Statistics show that at present average consumption works out at only a pot of yoghurt every two weeks.
Per capita yoghurt consumption in Romania is one of the lowest in the region. Romanians eat on average 5 kg of yoghurt each year, whereas consumption reaches 19 kg in Bulgaria, 11 kg in Hungary and 35 kg in France. In 2011 Danone invested RON 16 million (approximately EUR 3.8 million) which went into the company’s factory near Bucharest. Some 90 percent of the products the company sells in Romania are manufactured there. Danone Romania processed some 65 million liters of fresh milk last year, through partnerships with 57 local farms. The company helps local farmers to invest in upgrading milk production through the Going West program and wants to invest EUR 2.1 million – EUR 500,000 of which will be EU funds – to support 800 small family farms to meet EU requirements on milk quality by end-2013. This year Danone celebrates 15 years since starting operations on the local market. The French company has invested RON 300 million since 1997 and now employs 738 people. ∫ Simona Bazavan
6 AGRICULTURE
www.business-review.ro Business Review | May 21 - 27, 2012
Entrepreneurs cultivate interest in agriculture What does it take to invest in Romanian agriculture? What are the risks? After the fruitful results reported in the past couple of years, local agriculture has been getting a lot of attention from investors and entrepreneurs who can see big profits beyond some of the industry’s deeply rooted issues. BR talked to consultants and local entrepreneurs to get their take. ∫ SIMONA BAZAVAN Camelia Sucu, Jean Valvis and George Copos are just some of the more prominent local businesspeople who, having established themselves in other industries, have announced plans to diversify their operations by investing in agriculture. And they are not the only ones. Soaring food prices worldwide and cheap local farmland have put agriculture on investors’ radar and many entrepreneurs are trying their luck with cultivating the land. The record results reported by the sector in the past few years are the main factor that has spurred investors’ appetite, but not the only one, Gabriel Ionescu, advisory coordinator at AgroAdvice, tells BR. Entrepreneurs are also lured by the greater financial support promised by the Common Agricultural Policy (CAP) for 2014-2020, even if it also proposes capping direct payments for large farms. Young farmers too stand to reap additional benefits from the future CAP. Be it traditional crop cultivation, zootechnics, organic farming or agribusiness, agriculture can be a profitable business for those with a solid, well thought out and well implemented business plan, consultants argue. The same business rigor applies here as in any other domain, if not even more so. Discipline, methods, speed of reaction and planning are even more important when running a business in this field, thinks Ionescu. Those venturing to invest in agriculture can be largely divided into two main profiles. “On one hand there are those passionate about agriculture and Fields of gold? Romanian agriculture has great potential but equipment and methods need modernization, say pundits who have a background in this field,” says Ionescu. The second category consists of investors who don’t have the necessary professional background but who choose to viously told BR. “It is unacceptable for hire specialists. “Land consolidation is essential. If one Romania as an EU memwants to start an agriculture business and owns, let’s say, 1,000 hectares but this Weeding out the setbacks ber to have 10 million land is scattered all around in different One of the greatest challenges an investor farmland owners who smaller plots, it makes it impossible to propfaces when deciding to start a farming erly manage the land. Chances are that the business is acquiring the land. While there cultivate under 10 business will go bust,” argues Ionescu. is plenty on offer and Romanian farmland hectares each, much of Another challenge ahead is managing is valued on average at less than 20 percent the cash-flow. “In agriculture there are of its Western European equivalent, land which done as in the production cycles. This means that infragmentation remains a major stumbling stone age. If change come generally comes twice a year whereblock. About 25 percent of the country’s doesn’t come, agriculture as many costs are monthly. Having the necagricultural land is divided into plots of unessary working capital is crucial,” the conder one hectare, whereas investors are will make a difference looking for blocks of over 1,000 hectares, sultant adds. There is also the issue of havonly under exceptional ing the necessary know-how to implesay real estate pundits. A compact plot of ment the right technologies for the land, 1,000 hectares can often be obtained only weather conditions” weather conditions and available budget. by buying land from 500 to 900 individual Gabriel Ionescu, advisory But while the need for specialized agriowners, which makes the consolidation process very difficult, Marius Grigorica, cultural advisory services is huge in RoGabriel Ionescu, advisory coordinator at coordinator at AgroAdvice mania, the market for independent paid-for senior business analyst at DTZ Echinox, preAgroAdvice
www.business-review.ro Business Review | May 21 - 27, 2012
consultancy is in its very beginnings. “The need for proper know-how is whopping and this becomes obvious when looking at the low average production levels reported in Romania against the EU averages,” says Ionescu. In his opinion the problem lies in the fact that local farmers have grown accustomed to and settle for getting free advice when acquiring industry products, but this sort of information is often biased and incomplete. Putting all in the balance, agriculture can be a more precarious field than others, if for no other reason than for the fact that it relies on nature. “What many don’t understand is that in agriculture one has to deal with nature. From ten years there could be three or four exceptional ones and three or four which can turn out disastrously. (…) In Romania irrigation infrastructure is obsolete but even if this wasn’t the case, irrigation can never entirely replace rain,” says Ionescu. Add the lack of proper know-how to the equation and agriculture becomes a truly risky business. Moreover, farmers often find themselves at the mercy of international stock exchanges which dictate the price of both inputs and outputs. Business integration and association can make farmers’ lives easier in this respect, argues Ionescu. But despite all this, agriculture can be a profitable business when done professionally. “I wouldn’t say that the rate of failure is greater in this sector. There are different challenges and risks and one has to adapt,” he adds.
Sowing the seeds of future growth Not everyone agrees that investing in agri-
AGRICULTURE 7 culture is riskier. After having established herself in the furniture business, local businesswoman Camelia Sucu is putting her faith in farming as one of the sectors that will bring considerable returns in the years to come. “Agriculture can be a lucrative business if it unites private and public interests, if it mobilizes more than a handful of people. The risk of bankruptcy is no higher than elsewhere. However, success in agriculture would definitely be more visible, it would coagulate social forces which would lead to progress for the whole country. I believe agriculture is generous if practiced with honesty like any business: people work responsibly around objectives motivated by interests and sharing risks,” Sucu tells BR. She bought Piata de Gros – a wholesale market for agricultural products in Bucharest which was designed to bring together producers and retailers – in 2010 for EUR 5.5 million. Last October Sucu announced plans to invest between EUR 10 million and EUR 15 million in modernizing and expanding the project which she says is presently in an advanced stage. She now plans to launch a new brand for the market. “The plans are ambitious and don’t center on the market alone but also on the virtual space around the market, farmers’ associations and strategic collecting points for agricultural goods. The market can’t work in isolation; it must be fed by a viable agricultural and commercial system. In order for this to happen I need the authorities’ support through a public-private partnership, I need visionary people willing to invest” she says. Sucu, who owns the Class Living luxu-
Camelia Sucu, owner of Class Living
“Agriculture can be a lucrative business if it unites private and public interests, if it mobilizes more than a handful of people. The risk of bankruptcy is no higher than elsewhere. However, success in agriculture would definitely be more visible.” Camelia Sucu, owner of Class Living
ry furniture retailer and co-founded furniture company Mobexpert, also invested last year in a cattle farm in Transylvania. “I believe in agriculture and moreover I believe that for Romania agriculture is an engine that can restart the economy. I believe in the country’s agricultural potential and in agriculture’s potential to represent an alternative to create jobs and prosperity,” says the business woman. Romanian agriculture has come a long way in the past 20 years but not as far as it should have, many argue. Considerable investments have been made and production rates go up almost every year. At the moment a number of modern and profitable local farms, albeit a small number, can compete on equal grounds with their Western counterparts. However, this will remain the exception rather than the rule so long as subsistence agriculture continues to be practiced on a considerable share of the country’s total farmland. And it is not enough to make local agriculture a strong industry, argues Ionescu. “It is unacceptable for an EU member country to have 10 million farmland owners who cultivate under 10 hectares of land each, much of which is done as it was done in the stone age. This is a political decision and if change doesn’t come in order to boost efficiency, agriculture will be able to make a difference only every few years when there happens to be exceptional weather conditions and we report record production levels. Otherwise we will remain the last on the list and we will continue to languish far below the EU average,” concludes Ionescu.
simona.bazavan @business-review.ro
www.business-review.ro Business Review | May 21 - 27, 2012
8 INSURANCE
Insurers seek cover from economic problems The Romanian insurance market is still facing the difficulties caused by the economic crisis. Uncertainty besets the current global and local economic climate, while austerity is keeping up the pressure on Romanian society, influencing consumer behavior and economic decisions. Insurers told BR how they are responding. percent in 2011 compared to 2010. “Without any doubt, the MTPL 2011 average tariff level is unsustainable, given the fact that at the market level for every RON 100 (approximately EUR 22) cashed for MTPL insurance issued in 2011, insurers registered losses of at least RON 2530 (EUR 7). In this context, it is absolutely certain that 2011 heightened both the aggregate loss insurers recorded on the MTPL sector as well as the net result of general insurance business. 2011 is therefore the seventh consecutive year in which insurance activity in Romania has generated technical losses on the P&C aggregated segment,” adds Bir.
∫ ANDA SEBESI According to the Insurance Market Overview study on Central and Eastern Europe and Romania conducted by Ensight Management Consulting and released in March, the CEE insurance market showed signs of improvement in 2010, registering a 10 percent increase in gross written premiums. The advance was driven by increases in both insurance categories – life (14 percent) and non-life (6 percent). Non-life insurance represents 51 percent of the total insurance market in the CEE region. Although this is down from 54 percent in 2009, it is still higher than the overall European market figure for non-life insurance, approximately 40 percent. The study also shows that the only country in the CEE region with an insurance sector developed to the European level is Poland. The Polish market is still posting aggressive growth (a 15 percent increase in the overall insurance market, 33 percent for life and 14 percent for non-life insurance distributed through bancassurance in 2010, as compared to 2009). Regional insurance distribution channels registered changes in 2010 due to market share transfer from Direct Writing to Intermediaries (agents and brokers) and to the extensive development of the bancassurance distribution channel in countries like Poland, Croatia and Romania, found the same study.
Local insurance market in 2010… The researchers found that the concentration degree on the Romanian insurance market rose 11 percent in 2010, after almost doubling in 2009. This was due to the consolidation of various international groups on the market, as well as to the 2010 increase in market share for the big players. The local insurance market is very dynamic, with opposing trends on the life and non-life insurance products. Generally, a higher dynamic on one market segment is accompanied by a lower one on the other. In 2010, the trend reversed for both segments: although the overall insurance market registered a decrease of 6 percent, the life insurance segment notched up a 2 percent increase, driven by the unit-linked life assurance segment which grew by 9 percent, while the non-life insurance segment posted a contraction, for the first time in eight years, of 8 percent in RON. During 2010, the retail segment of the insurance market increased by 4 percent in life and non-life insurance products, while the corporate segment of the market decreased its non-life insurance spending by approximately 15 percent. This was due to numerous companies ceasing their activities and/or reducing insurance expenses, found the study. According to the research, overall profit gained on the market fell again by
What about life insurance?
Policy of truth: insurers say the market has some way to go to reach European levels 25 percent in 2010 against 2009, while losses also decreased by approximately 34 percent, leading to a net negative result of 41 million RON. Researchers found that out of the total gross written premiums for 2010, 15 percent were ceded to reinsurance, 23 percent down on 2009 and a 31 percent fall since 2008. The 2010 decrease in gross written premiums ceded to reinsurance was attributable primarily to the changes made to the reinsurance strategy of most companies. This occurred when product portfolios were adapted to new market requirements and when risk was measured via stress tests. Ensight’s researchers predict that trends on the Romanian insurance market in the next two-three years will include the search for measures to increase activity efficiency and performance, reassessing distribution channels including the more frequent use of bancassurance, activity consolidation and rebranding. The analysis and projected trends were based on data available by February 2012.
…and 2011 But what happened last year on the local insurance market, seen as a year of recovery rather than crisis? According to Insurance Supervisory Commission (CSA) data, total gross written premiums (GWP) came to over RON 7.9 billion in 2011, a
nominal decrease of 4.3 percent on 2010 (RON 8.3 billion).“The contraction was caused exclusively by lower underwriting on the general insurance segment, which displayed a drop of about 6.5 percent to RON 6.2 billion in 2011, compared to over RON 6.6 billion of gross written premiums in 2010,” says Rangam Bir, CEO of Allianz-Tiriac Asigurari. He adds that the real decrease of the Property & Casualty (P&C) insurance segment was even higher, as the underwriting carried out by local insurers abroad (on the basis of the free movement of services principle) most likely increased in 2011 on 2010. “In this context, the penetration rate of P&C insurance (underwriting volume as a percentage of GDP) in Romania fell to 1.03 percent in 2011 from 1.29 percent in 2010,” says Bir. Among other trends, he cites the more rapid decline of motor hull insurance underwritings in 2011, of about 18 percent, while gross written premiums on Casco posted a decrease of more than 26 percent in 2010. “Simultaneously, for the first time in recent years, in 2011 we posted a significant drop in premium revenues for compulsory motor third party liability (MTPL), of over 21 percent, mainly because of lower tariffs from most of the insurers with relevant activity in this line of business,” adds the CEO. According to the preliminary figures published by the CSA, the average annualized MTPL premium dropped 26
According to Mihai Popescu, CEO of Aviva Asigurari de Viata, in Romania life insurance has a market share of 19.9 percent of the total insurance market. This is significantly lower than in nearby countries such as the Czech Republic (46 percent), Hungary (53.5 percent) and Poland (58 percent). These differences are also evident in the life insurance penetration rate, calculated as the volume of gross written premiums against the gross domestic product (GDP). In Romania 0.3 percent of the monthly average gross salary is allocated to life insurance, while in other countries in the region the figure is 2 percent. So, while a typical Pole devotes up to EUR 17.2, a Romanian spends EUR 1.5. Specialists say that annual life insurance sales rose, reaching RON 1.74 billion in 2011 compared with RON 1.66 billion a year earlier. But despite this, the life insurance segment remains at a low level in terms of penetration, with underwritings representing only 0.3 percent of GDP. “Analyzed in terms of quality, the life insurance portfolio has a high degree of volatility in Romania, given that in 2011 the rate of policy redemption before maturity, although slightly less than in previous years, remained at a very high level, representing over 34 percent of annual underwritings,” adds Bir. The minimal economic growth predicted for 2012 could have an influence on the local life insurance market, allaying the fears of investors, the business environment and consumers. Yet such an evolution can’t generate immediate positive effects for companies and customers, the more so as marginal increases are the best that can be hoped for. “In this context, I don’t expect to see major changes in new sales of products in 2012 compared with 2011 and overall I estimate a slow increase in the market, of about 5-7 percent,” says Cornelia Coman, general manager at ING Asigurari de Viata. She also calls for ongoing and concerted efforts to inform and educate people, along with the increase of transparency and simplicity in communicating with both customers and the public. “Offering fiscal deductibility with positive
www.business-review.ro Business Review | May 21 - 27, 2012
10 INSURANCE
hospitals, and also includes surgery, interpretation of medical tests, annual routine or specialized examinations and dental services. Meanwhile, health subscription covers basic medical services but only in the medical unit where the subscription has been taken out. “Health insurance takes on the financial risk of the customer when he or she has a health problem. As for efficiency, the best option in order to benefit from a wide range of services provided by many medical suppliers is health insurance. It can cover indispensable or expensive services that a health subscription cannot,” explains Leondari. According to CSA data, the total health insurance market was worth RON 44.4 million last year, posting an increase of 45 percent compared with 2010. Alexandru Leondari, deputy general manager of Eureko
Cornelia Coman, general manager at ING Asigurari de Viata
554.4 million), while the level of assets we managed for our customers reached RON 2.1 billion,” says the ING representative. In 2012 she says that the company intends to consolidate its leading position and estimates a slightly higher volume of gross written premiums than in 2011 based on several elements: a more responsible consumer, unique and efficient instruments, a complex range of products and services that meet the protection and saving needs of its customers and the company’s staff. “In the meantime we will continue our strategy of putting our customer first. We intend to offer him or her a memorable and unique experience, focusing on offering innovative products and services, diversifying our distribution channels and increasing our level of advice and support during the whole partnership,” adds Coman. Elsewhere, Eureko posted an increase of 1.6 percent in its total gross written premiums last year on 2010, to reach RON 42.04 million. On the life insurance segment its gross written premiums fell 1 percent to RON 30.93 million. As for Insurers face market health insurance, the company mainchallenges tained its leading position, posting RON Coman of ING says that the insurer has 10.47 million on a 5.12 percent increase concentrated on two significant areas – in its written premiums. “We had a marenhancing the initiatives developed for ket share of 23.53 percent on this segment the benefit of its customers in order to reat the end of last year,” says Leondari. spond better to their safety, transparency and professional advisory needs, and “We expect significant results this year, esthe healthy development of its activity. pecially on the health insurance segment where we have a strong presence “The volume of gross written premiums nationwide, with more than 350 partposted a slight increase at the end of 2011 nerships with medical services suppliers on the same period of 2010 (up to RON effects for the entire economy could be another significant incentive for developing life and health insurance,” says Coman. Elsewhere, Alexandru Leondari, deputy general manager at Eureko, sees 2012 as a dynamic year with several challenges that the life insurance industry must face. In his opinion, the main obstacle to stabilizing the industry is the constantly changing healthcare reform. “We expect the life insurance market to increase by up to 10 percent, in part because people are aware of the need for personal and financial protection against various risks,” says Leondari. He adds that life insurance with capital storage will remain among the best selling products, especially in these difficult times. “Financial protection is one of Romanians’ concerns, although for many social classes saving and buying insurance policies has slid down the priority list since the economic crisis and as a result of a decrease in their income,” says the Eureko representative.
Geographical distribution of gross written premiums for general and life insurance at end-2011 Region
Distribution (%)
North-west West South-west South South-east North-east Center Bucharest and Ilfov county
8.65 5.99 4.59 7.61 7.20 6.67 7.86 47.83
Source: Insurance Supervisory Commission
Rangam Bir, CEO of Allianz-Tiriac Asigurari
and pharmacy chains like Regina Maria, Sanador, MedCenter, Euromedic and Catena.” He adds that the company will focus this year mainly on efficiency and organic growth through optimizing its distribution channels and innovative products. Meanwhile, Allianz-Tiriac Asigurari posted total earnings from general and life insurance premiums of RON 906.3 million, a decrease of about 12 percent on the previous year. General insurance counted for 89.6 percent of the total earnings, and life insurance 10.4 percent. The firm’s operational result posted an increase of 5.4 percent to RON 7.8 million, according to the preliminary annual results according to International Accounting Standards. “While annual results tell only a part of the story of the businesses evolution, the results posted by Allianz-Tiriac in the last part of the year show that we are on the right track,” stated Bir in a press release. The volume of business during the third and the fourth quarter of 2011 increased gradually. “Our efforts to improve the business model are more and more visible. We have become much more accessible to various categories of customers. This is proved by the fact that our retail businesses increased on all classes of facultative insurance last year, while traditionally we manage to stay well positioned in the commercial and corporate areas. We develop optimization programs for operational processes meant to increase the level of satisfaction of our customers,” stated Bir. Last but not least, Vienna Insurance Group posted an increase of 8.4 percent on the life insurance segment in Romania, to EUR 101 million. This trend was supported mainly by the sales made by Banca Comerciala Romana. It also registered a decrease of 7.6 percent on the general insurance segment to EUR 401.9 million.. VIG is present on the local market through Asirom, BCR Asigurari, BCR Asigurari de Viata and Omniasig.
Health insurance or health subscription? The main difference between health insurance and a health subscription are the services available to the patient. Private medical insurance covers hospitalization, both in private and state-owned
What the future holds According to Bir, 2012 should be the first year when balance on the insurance market in Romania is restored, even if the overall economic, financial and social picture does not allow a clear projection. Uncertainty remains one of the characteristics of the current global and local economic climate. Austerity is the second major feature, keeping up the pressure on Romanian society, affecting consumer behavior and economic agents. “In such a context, we cannot expect a sharp reversal of trends in insurance. In any case, the shift towards the positive territory of the aggregate revenues in the general insurance business can only be achieved if there are profound changes in pricing policies, especially on the compulsory MTPL line of business,” says Bir. “Only a responsible approach will allow for a recovery of the underwriting volume on MTPL. Even if it is practically impossible for 2012 to bring a positive technical result for the general insurance market, a positive evolution of margins for the companies that are active in this segment is absolutely necessary for the stability of the local market.” As for the future of the life insurance segment, the Allianz-Tiriac representative thinks that the success of insurance companies will be decided not only by their ability to attract new customers, but also by the results of their efforts to increase the loyalty of the existing ones. “Obviously, in such times of uncertainty, customers prefer products that offer not only a guarantee of compensation in times of need, but also provide savings options. New customers of insurance companies will opt, therefore, mostly for traditional policies, which guarantee the initial capital and a minimum return on investments,” says Bir. One trait of the local life insurance market is the high level of volatility for the life portfolio, mainly for policies with an investment component (for which investment risk is assumed by the client). “It is very likely we will see an increase in life insurance sales in 2012. However, customers need to ultimately recognize that life insurance contracts are not short-term ones, but have a long duration that provides them not only with protection, but also opportunities to save for the future. Short-term thinking about life insurance contracts is not favorable for customers’ financial outcomes,” concludes Bir.
anda.sebesi@business-review.ro
www.business-review.ro Business Review | May 21 - 27, 2012
TALENT 11
Romanian labor market loses core skills The desire to have a university diploma and the lack of proper careers advice have pushed many young people away from certain basic qualifications that are now desperately needed, both in Romania and abroad. The fact that salaries awarded by local employers to people who do possess these skills are low, even lower than the amount they could command abroad, has exacerbated the problem. So, if you wish to recruit staff in these domains, be warned: there is shortage.
SOUGHT AFTER WORKERS ABROAD l l l l l l l l l
Waiter Cook Welder Bartender Skilled worker Carpenter Electrician Bricklayer Baker/ Confectioner/ Pastry specialist Plumber
*Source: Myjob.ro
Technical skills are sought after in Romania, as many qualified candidates emigrate
∫ OTILIA HARAGA The lack of well-trained skilled staff for certain qualifications comes as “a natural result of the fact that numerous pupils go into higher education. Candidates’ chase for qualifications and to work for brands in the best paid industries, in professions where appointments were made not on the candidate’s abilities, but rather on their efforts to accumulate purely theoretical knowledge, mean we can no longer find ‘essential’ professionals,” Mihaela Feodorof, founder of Yourway, a company which offers vocational advice to pupils and business counseling, tells BR.
What are the market needs? Data provided by Oana- Maria Banu, product marketing manager at Myjob.ro online recruitment site, show that the posts that employers are most eager to fill at the moment are those of waiter, car mechanic, bartender, electrician, skilled
MOST VACANT JOBS IN ROMANIA l l l l l l l l l l
Cook Waiter Car mechanic Electrician Welder Hairdresser Bartender Skilled worker Manicurist Cosmetician
*Source: Myjob.ro
worker, welder, cook, plumber, confections manufacturer and locksmith. Similarly, BestJobs.ro has currently nearly 1,000 open positions available for people who are qualified to be cooks, hairdressers, cosmeticians, lathemen, technicians and similar. “Over the past six months, over 4,000 candidates with similar training as the positions mentioned above have updated their CVs,” Andreea Mihaescu, PR& communication assistant at BestJobs Recrutare tells BR. “Most vacancies can be found in the restaurants/services area, as we have 64 adverts for cooks on the website, each of these with at least one position available. A close second is the beauty area, where the most sought after are cosmeticians, hairdressers and massage technicians,” they add. Age is also a factor. “Most skilled personnel on the Romanian labor market are in the senior age category – which does not fit employers’ requirements. As discriminatory as it may seem, the vast majority of employers are looking for skilled staff aged 25 to 40, young, who know their job well and ask for as low as possible a salary, since we are in a period of crisis,” Monica Spiteri, business development director at Smartree Romania, tells BR. However, these candidates also have the option to try their luck outside the country. “Many of the announcements in Horeca are posted by companies that are also recruiting abroad. For instance, four of the open positions for cooks are abroad, notably Germany and Great Britain,” says Mihaescu. “It is safe to say there is a shortage of staff on the Romanian market in all domains, and this is because young and skilled people have preferred to work in other countries or open a business, to earn
more money. Therefore, people who have qualifications in construction, professional drivers and even medical staff have chosen to leave for other countries in the European Union, where Romanian workers can get better paid jobs,” says Spiteri. The gap between salaries available to qualified candidates in Romania and abroad is sometimes staggering. “If in Romania salaries vary between RON 800 and RON 1,500, in other countries they can be between EUR 500 and EUR 2,500. Even more, some employers offer, besides the wages, board and food,” says Spiteri. Of course, one must take with a pinch of salt many of the better salaries that employers wave in front of candidates’ eyes, since some salaries are not declared. “The best paid jobs in Romania are in construction but these are often well paid because employers are still working on the black or grey market – a lower salary is stipulated on the labor contract, and the rest they take in hand,” says Spiteri. The difference can be as much as fourfold, according to data given to BR by Myjob.ro. For instance, a waiter who makes on average EUR 340 a month in Romania can earn EUR 1,800 abroad. Similarly, a car mechanic has an average salary of EUR 425 in Romania, while abroad the sum can go as high as EUR 2,500. An electrician earns about EUR 500 a month in Romania, while in another country the medium salary is EUR 2,800. And the examples go on: a locksmith earns on average EUR 480 monthly in Romania, and EUR 2,000 abroad, a welder about EUR 500 in Romania and EUR 2,000 abroad, a cook can make EUR 420 in Romania and EUR 1,700 outside. “The domains in which qualified personnel in Romania have managed to secure substantial revenues outside the country were, and remain, even during the post-2008 crisis period, healthcare and construction,” says Feodorof. To fill the deficit, companies should “adapt their recruitment and investment
policies to train skilled personnel as well as offer compensation packages and benefits at an attractive level. At the same time, stability in the workplace is an important motivating factor for qualified personnel in certain jobs,” says Spiteri. Feodorof suggests yet another solution, arguing that the only way to attract young people to these fields is to introduce vocational counseling in the curriculum. “Technical colleges teaching trades are based on qualifications and form the basis of higher education. No one can stop a graduate of a technical school continuing studies in a domain he or she enjoys and gets good results. (…) The mentality and the way each young person is integrated in the broad social classes are the barriers that have led to this state of dissatisfaction and a worrying unemployment rate worldwide among young people between 16 and 25,” argues Feodorof. Marks are not everything, say players. Ideally, attending a technical college should not be based on the pupil’s school results but his or her natural inclinations and abilities that can be developed, says Feodorof. In Romania, the level of technical colleges is good, “sometimes even higher than in other European countries,” says Spiteri. On the other hand, the number of such schools has significantly dwindled over recent years, falling to approximately 40 from 200 in the 90s. The place of these schools was taken by companies who are organizing vocational training accredited by the National Council of Professional Training for Adults, but which are often not very specialized, she adds.
otilia.haraga@business-review.ro
SALARIES IN ROMANIA VS. ABROAD Waiter: Romania: EUR 340; Abroad: EUR 1,800 Car mechanic: Romania: EUR 425; Abroad: EUR 2,500 Bartender: Romania: EUR 345; Abroad: EUR 1,700 Electrician: Romania: EUR 500; Abroad: EUR 2,800 Skilled worker: Romania: EUR 450; Abroad: EUR 1,300 Welder: Romania: EUR 500; Abroad: EUR 2,000 Cook: Romania: EUR 420; Abroad: EUR 1,700 Plumber: Romania: EUR 520; Abroad: EUR 1,800 Locksmith: Romania: EUR 480; Abroad: EUR 2,000
*Source: Myjob.ro
www.business-review.ro Business Review | May 21 - 27, 2012
12 CITY RESTAURANT REVIEW
Savory savings Business lunch at Roberto’s, Athenee Palace Hilton Hotel, 1-3 Strada Episcopiei. 021 303 3777. DEBBIE STOWE
Photo: Laurentiu Obae
In case you hadn’t noticed, austerity is here. You probably eat out a little less often than you did four or five years ago. Perhaps you go a little easier on the imported wines, too. Along with the credit crunch, there has been a lunch crunch. Most workers now snaffle a shop-bought sandwich at their desks, rather than take the leisurely midday break or long liquid lunch of old. Even those famous foodies the French have seen their average lunch break fall from an hour and a half two decades ago to just 22 minutes. Zut alors! So from cash-rich and time-poor, many of us now find ourselves both cash-poor and time-poor. With its finger on the pulse of these trends, the Hilton’s Italian eatery Roberto’s promises to save you both minutes and money with a three-course business lunch for RON 75. The offer runs from noon to 3pm on weekdays and consists, according to the website, of a choice
of three starters and five mains (although there were only three mains on the menu on our visit). Play began with roast tomato and basil soup, a robust and hearty blend that had been partially pulverized but stopped short of full smoothness, giving it a rustic dash. A pesto drizzle sat atop. Alongside it we had a light and punchy pan-roasted cuttlefish salad, an airy and well balanced mix of shavings of fennel, a sprinkling of fresh spinach leaves and cherry tomatoes. The chef wisely kept the dressing low key, allowing the mollusks to do the talking. Roberto’s has always been big on culinary authenticity, and our two mains both showed due respect to the Italian orthodoxy. Duo of smoked fish pizza came on a wooden board and on a crispy cracker crust base, rather than the usual doughy platform. Strings of red onion, powerful rucola leaves and cherry tomatoes (again) interpolated the flavorful fish, drizzled in a dill and caper dressing. Crunch-tastic! Similarly, grilled vegetable lasagna consisted of moist layers of zucchini, aubergine (or eggplant if you must) and peppers, soaked in a creamy pecorino sauce – with no pasta. Proper old-country stuff. Unlike some of its competitors, Roberto’s always get the details right. Olive oil and
Al fresco: Roberto’s business lunch can be taken on the terrace
balsamic vinegar were on our table in bottles that resembled upmarket perfume containers. The olive oil especially was divine stuff, which we rapidly depleted with the soft, moreish sunflower seed-bedecked bread sticks that were furnished and refurnished (of course, without charge). I need not add that the décor was tasteful (following a fairly recent refurbishment), the table cloths virgin white and the service impeccable. You know that – it’s the Hilton. The fixed dessert was cannoli (making their second consecutive appearance in this column), dinky Sicilian pastry with
sweet cheese. This, coffee and water are all included in the price, so no fear of being stiffed on the extras. RON 75 means RON 75. Because you’re not choosing a la carte, everything comes promptly and if you’re a time-pressed worker it would probably be possible to be in and out in an hour, if not as fast as France’s 22 minutes. The offer will run for the foreseeable future and while there is – obviously – a nonsmoking section, you can also take lunch on the hotel’s terrace. An agreeable environment in which to congratulate yourself on your frugalness in embracing the new austerity. ∫
www.business-review.ro Business Review | May 21 - 27, 2012
INTERVIEW 13
CULTURAL EVENTS AGENDA EXHIBITIONS Magnetic Islands Opens May 18 Carturesti Verona, from 18.00
The George Enescu Philharmonic performs a Lieds Recital, comprising the works of Jules Massenet, Robert Schumann and Gabriel Fauré, at the Romanian Athenaeum Concert Hall.
FILM PREMIERS The Dictator
Artist Aurel Tar invites visitors to see how a fridge can be a piece of contemporary art. The Magnetic Islands project consists of a series of fridge magnets featuring pictures from various places. London 2012 Olympic Exhibition Opens May 22, from 11.00
Borat star Sacha Baron Cohen is in his usual outrageous form in this comedy, in which a dictator risks his life to ensure that democracy will never come to the country he has oppressed. Director: Larry Charles Starring: Sacha Baron Cohen, Anna Faris, Ben Kingsley
The British Embassy and Bucharest’s Ion Mincu University of Architecture extend a public invitation to the launch of the London 2012 Olympic Exhibition. The event will take place in Frescelor Hall at the University of Architecture. The guest speakers are Paul Hartmann, project manager at the Olympic Development Authority, and Jonathan Kendall, main architect of the Olympic Park.
On at: Movieplex Cinema Plaza, The Light Cinema, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Cotroceni VIP, Glendale Studio Dark Shadows
World Press Photo The National Library of Romania Until June 10 Based on the 1960s TV series created by Dan Curtis, this horror-comedy follows the adventures of 18th-century vampire Barnabas Collins (Johnny Depp) who finds himself resurrected in the 1970s. Director: Tim Burton Starring: Michelle Pfeifer, Johnny Depp, Eva Green The most important photojournalistic exhibition in the world, World Press Photo, can now be seen in Bucharest until 10th of June. This year, World Press Photo gathers 170 awarded photos from journalists all around the world. For this 57th edition of the show, the contest attracted 5.247 participants from 124 countries with 101.254 photos.
On at: Movieplex Cinema Plaza; The Light Cinema; Hollywood Multiplex; Cinema PRO, Cinema City Cotroceni, Cinema City Sun Plaza, Glendale Studio, Patria, Cinema City Cotroceni VIP
MUSIC George Enescu Philharmonic May 22, 19.00 Cannes Film Festival The entire duration of the 65th Cannes Festival is being screened on TV5MONDE and online at www.tv5monde.com/cannes, from May 16-27. Cristi Mungiu, Cristi Iftimie, Oleg Mutu, Paul Negoescu, Adina Pintilie and Vlad Ivanov fly the flag for Romania.
www.business-review.ro Business Review | May 21 - 27, 2012
14 CITY PHOTOGRAPHY
FILM REVIEW
Expat women photographers put Romania under the lens
Local color: photos will be on display
C
olors of Romania, the newest version of the yearly photo exhibition held by a group of expat women in Romania, opens this weekend at Crowne Plaza hotel. After Romania through the Lenses of Expat Women and An A to Z of Romania, Colors of Romania shows the richness of the colors that demonstrate the strength of the country, the organizers say. They are a group of 34 women originating from 19 different cultures, linked by their shared passion for photography. The organizers say the exhibition is not only aimed at portraying the country
through the benevolent objectives of expatriate eyes and camera lenses, but that it will also be a way of raising funds for several NGOs and foundations active in Romania through the sale of photo prints and a photo book. The beneficiary NGOs and foundations are: Mia’s children, Asociatia Speranta Pentru Sanatate (Hope for Health), Our Lady of Mercy in Romania, Parada, Hospice Casa Sperentei, Mia (Casa Valentina), Fundatia Inocenti, Light into Europe and Second Chance. Photo prints of the pictures exhibited at Crowne Plaza can be ordered through www.coloursofromania.org on different supports and in different formats. As in previous years, the exhibitors have produced a book of their photographs. It includes larger photo portfolios of the exhibitors and details about the moments when the photos were taken. The price per book is RON 60. ∫ The exhibition runs from May 19 until June 3, at the Crowne Plaza Hotel in Bucharest.
BUSINESS AGENDA May 21-24 Media XPRIMM organizes the sixth edition of FIAR, the International InsuranceReinsurance Forum, at Casino Palace in Sinaia. Heads of the Romanian insurance market will attend. By invitation only. May 23 08:30 The Romanian Business Leaders Foundation organizes a conference to present the results of a survey carried out in partnership with GfK on Romania’s future economic trends at Ramada Nord Hotel. By invitation only. 09:00 BR organizes the first edition of Focus on Agriculture at Ramada Plaza Bucharest. Camelia Sucu, owner of Piata de Gros, will attend. By invitation only.
agers will gauge the main issues of the labor market. By invitation only. May 30 Law firm Tuca Zbarcea & Asociatii organizes a seminar on the fiscal implications of enforcement obligation and the assignment of debt at City Plaza Hotel, Cluj-Napoca. The event will also address the impact of the new Civil Code and the new Civil Procedure Code. By invitation only. May 31 – June 3 TIBCO, the Bucharest International Fair for Consumer Goods, is organized at Romexpo Exhibition Center.
May 29 ∫EVENT BR organizes the third edition of the Focus on Employment conference at Howard Johnson Grand Plaza Hotel. Representatives of public authorities, legal and tax experts, along with HR man-
June 11 -12 Bancpost organizes the delegation and business forum Go International, entitled Greece-Romania: At the Confluence of Regional Commercial Synergies, at JW Marriott Hotel. The event is supported by the Chamber of Commerce and Industry of Romania and the Hellenic-Romanian Chamber of Commerce and Industry.
ISSN No. 1453 - 729X
FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi ART DIRECTOR Alexandru Oriean PHOTO EDITOR: Mihai Constantineanu PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu
Adalbert’s Dream
Dream a little dream: Gabriel Spahiu stars in Gabriel Achim’s black comedy
DEBBIE STOWE
It is apt that Bucharest’s recent bout of footballing glory – albeit the vicarious triumph of competently hosting a European final rather than a Romanian team winning something – should coincide with the release of Gabriel Achim’s debut feature film. In 1986 Steaua Bucharest improbably beat Barcelona to win the European Cup, thanks to goalkeeper Helmuth Duckadam heroically saving four penalties in the deciding shootout. Footage of this, set evocatively to an operatic score, opens the movie. The protagonist is not Adalbert, but Iulica (Gabriel Spahiu), a geeky yet good-humored engineer at a typical Communist-era factory. Despite his whining wife, morose mistress and belligerent boss, Iulica has managed to maintain his cheery disposition, and savors life’s small pleasures, such as celebrating the Steaua win with his son, work banter and smuggling in an illicit video machine so his boss can re-watch the game. The factory is staging an elaborate event to mark the Communist Party’s 65th anniversary, which includes the showing of two films made by staff. As in The Legend of the Official Visit, one of the short stories that made up the 2009 portmanteau film Tales from the Golden Age (in which Spahiu also had a role), huge amounts of time and effort are put into covering up the usual
slapdash goings-on and impressing the party bigwigs with pomp and bombast – an endeavor doomed, inevitably, to backfire. Embracing the Romanian New Wave, Adalbert’s Dream is marked by black humor, a focus on the absurdities of life under the last years of the Communist regime, a realistic style, slow pace and pared down aesthetic. But the film also harks back further into local cinema history, with an homage to Reconstruction, the seminal 1968 Lucian Pintilie movie in which the reconstruction of a trivial scrap between two boys, filmed for the public edification, escalates into a far worse catastrophe than the original incident. It all sounds quintessentially Romanian, and indeed it is. However, the story also works on a more universal, human level. A wonderful scene where Iulica and his boss are dispatched to take a high-up’s infirm mother to a hospital appointment will have comic resonance with anyone who has felt a helpless surge of impatience with a slow-moving person. There are also some very funny lines. Achim’s debut feature is an experimental work with a surrealist vein. The director interpolates scenes depicting a fox fable into the main story, and one of the short films broadcast, the eponymous Adalbert’s Dream, is a bizarre, high-concept affair involving a large, floating tool, wholly unsuited to its audience of skeptical bluecollar workers and party chiefs. Offbeat, dark and wry, Adalbert’s Dream fuses comedy, tragedy, realism and surrealism into a memorable whole, a satisfying new entry into the New Wave canon.
PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 Fax: 031.040.09.34 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro
Director: Gabriel Achim Starring: Gabriel Spahiu, Doru Ana, Ozana Oancea, Anca Androne On: Noul cinematograf al regizorului roman - Studioul Horia Bernea