Business Review Issue 29, September 8-14

PROPERTY: The local residential market has growth potential and should see more units delivered over the coming period, although a price increase is unlikely, said Mindaugas Valuckas, the CEO of Hanner Group »page 10

NEWS PM VICTOR PONTA PREDICTS CHINESE INVESTMENTS WILL ACCELERATE IN ROMANIA NEXT YEAR, AFTER A THREE-DAY OFFICIAL VISIT TO CHINA

ROMANIA’S PREMIER BUSINESS WEEKLY

SEPTEMBER 8 - 14, 2014 / VOLUME 18, NUMBER 29

» PAGE 5

BR looks at how the increasing retirement age impacts the prospects of mature employees » page 8

STRIFE BEGINS AT 40 NEWS

FOCUS

Losing energy

Back in the red

Romania’s gas market will continue to fall below 12.5 bcm this year, as demand for energy remains subdued, says the head of OMV Petrom

Romania returned to technical recession and risks a decelerating growth pace after new taxes and a reduction of investments, warn pundits

» page 4

» page 6

www.business-review.eu Business Review | September 8 - 14, 2014

NEWS 3

NEWS in brief BANKING Piraeus Bank H1 gross profit at EUR 6.4 mln on lower risk cost The gross profit of Piraeus Bank Romania amounted to EUR 6.4 million in the first half of this year, sustained by a contraction in the portfolio of nonperforming loans and the reduction of provisioning costs for bad loans. The bank’s loan book rose by 11 percent to around EUR 1.5 billion, with provisioning costs falling by 2 percent. Deposits, meanwhile, grew by 17 percent to EUR 1.1 billion. The lender had around 300,000 customers at the end of last year, operating through a network of 135 branches.

ENERGY Romgaz invests EUR 27 mln in Urziceni gas depot Romgaz Medias has invested EUR 27 million in increasing the gas storage capacity of its depot in Urziceni, Ialomita county. Its director said that Romgaz wanted to get involved in as many natural gas projects as possible, including Black Sea ventures. Romgaz SA recorded a net profit of RON 871 million (EUR 198 million) in the first half of the year, up 40 percent compared to the same period of 2013 when it stood at RON 622 million, with revenues boosted by a recovering economy.

INFRASTRUCTURE PwC: Infrastructure spending to rise 5 percent every year until 2025 Local infrastructure expenditure will increase by 5 percent every year until 2025, much faster than in Western Europe, but slower than the global average.

The total allotted sum will reach USD 30 billion by 2025, according to a report

by PwC and Oxford Economics. “Romania’s infrastructure – transport infrastructure especially – is in great need of improvements, which justifies the substantial increase in road expenses in the last few years. We expect transport infrastructure to continue to be a priority during Europe’s economic recovery. Investments in roads, supported in part through European funds, will continue to constitute the main transport infrastructure expense, with a scheduled increase from USD 4.5 billion in 2013 to USD 9 billion in 2025,” said Daniel Anghel, service team leader at PwC Romania.

HUMAN RESOURCES Cost of working hour up 3.7 percent in Q2, says INS The average costs to an employer of one working hour grew by 3.7 percent in the second quarter of this year, against the first three months. Compared to the same quarter of last year, the sum is up by 5.0 percent, according to the National Institute of Statistics (INS), quoted by Mediafax newswire.

The cost represents total direct and indirect expenses that must be paid by an employer for an employee. This does not include expenses incurred through training, recruitment and protective equipment.

IT Softelligence predicts EUR 1.5 mln turnover this year, 60 percent growth in 2015 Softelligence is expecting a turnover of over EUR 1.5 million and 14 percent profitability in the current year. Since 2011, the company has been posting an annual turnover of over EUR 1 million. The software provider attributes the growth to more aggressive sales, operational efficiency, financial control, higher human resources competencies and attracting new experts to the team.

In 2015, the company aims to grow its turnover by more than 60 percent and reach EUR 2.5 million. The Softelligence growth strategy over the next three years includes an international presence by delivering services and exporting its own products, such as the Softelligence EBS (e-Business Suite).

services as well as public affairs projects. In the first half of the year, BDR Associates added 10 new clients to its portfolio in Romania, including Chep, KPS Diagnostics Laboratory Hungary and Vaillant Romania. In the Republic of Moldova, the agency’s new clients include the Ministry of Justice, Finance in Motion, the Moldova National Bank, the USAID BRITE Program in Moldova and Intercontinental Hotels.

ONLINE Groupon exits Romania Deal-of-the-day website Groupon has decided to shut down its operation in Romania, effective Wednesday, according to Techcrunch. EMEA VP Luke Massery emailed the news to the firm’s local merchant partners. “A combination of the macroeconomic situation and the low internet penetration in the country made it difficult for Groupon to gain desired critical mass.

Shutdown of our operations in Romania is in effect from 03.09.2014,” commented a company spokesperson. The spokesperson confirmed that there would be no further closures in other countries, calling Romania a “special case” in the region. Customers who have already bought Groupon vouchers and businesses that have offered them on the platform will have their agreements honored until the date originally stipulated. Alternatively, customers are entitled to refunds for any unused deals that they have purchased.

BDR Associates announces 25 percent turnover hike, targets Moldova consolidation BDR Associates Communication Group posted revenues of over RON 2.8 million in the first half of this year, from specialized consultancy and strategic communication services provided to Romanian and foreign clients, according to company officials. In the first six months of the year, the agency’s turnover hiked by 25 percent compared to the same period of last year. Approximately 40 percent of revenues were generated by consultancy in strategic communication and the remaining 60 percent from specialized

10-14 September International Trade Fair for Furniture, Equipment and Accessories (BIFE-SIM) BIFE-SIM will take place at Romexpo Exhibition Center, organized by Romexpo and co-organized by the Romanian Furniture Manufacturers’ Association, Romanian Chambers of Commerce and Industry and EUROEXPO. Entrance costs RON 15.

More information about the event can be found at http://bife-sim.ro September 12 Telekom Romania holds press conference Telekom Romania, the new brand that will unite Cosmote and Romtelecom, will introduce itself to the local market with a special press conference.

Government officials, major shareholders and top management executives are expected to attend.

Russia, Ukraine and EU representatives meet Russia, Ukraine and the European Union will meet in Brussels to discuss the Association Agreement between Kiev and the EU, said the bloc’s Trade Commissioner, Karel de Gucht. Economic Development Minister Aleksei Ulyukayev is expected to represent Russia. Foreign Minister Pavel Klimkin will speak for Ukraine and de Gucht for the European Union.

September 13 Telekom Romania holds special VIP event The second part of Telekom Romania's launch will be an interactive event in George Enescu Square in Bucharest.

PROPERTY Profi rents 2,500 sqm in VGP Park Timisoara

MEDIA

WEEK AHEAD

Local retailer Profi has rented 2,500 sqm for a new warehouse in a temperature-controlled facility in the VGP logistics park in Timisoara, western Romania, according to Mediafax newswire. The new warehouse will support the retailer’s expansion strategy in western Romania, according to real estate firm DTZ Echinox, cited by Mediafax. Profi owns 244 supermarkets in Romania but plans to expand to 400 outlets over the coming years. VGP Park offers 17,000 sqm of class A warehouse space and will add another 17,000 sqm this year. It is located on an 18 ha plot of land near the Traian Vuia airport in Timisoara.

Following the deal with Profi, VGP Park has reached 100 percent occupancy.

MOST READ www.business-review.eu 1 Best “ice bucket challenges”

from Romania’s business community

2 Children from Romania are happier than American kids – report

3 Romania’s proposals for EU

Commissioner: Dacian Ciolos and “definitely a woman”, according to PM Victor Ponta

4 Romanian Kaspersky expert

weighs in on celebrities’ nude photos leak: “A consequence of weak passwords”

5 China invited to invest in key Romanian projects

www.business-review.eu Business Review | September 8 - 14, 2014

4 NEWS ENERGY

3Q Sotiris Chatzidakis Executive VP CEO Clubs Romania

How has your organization transformed since setting up a presence in Romania?

In Romania we started from scratch and that was our biggest challenge at the beginning. Looking back at what we planned when we launched this chapter, we had to change at least 70 percent. To some extent that is normal, as you need to adjust to the local environment in order to be able to grasp the opportunities ahead. The threat to this is adjusting too much and finally ending up losing your true identity. I’m very happy to say that we maintained that equilibrium and that is definitely one of the main reasons why we are successful today.

What are the common management issues and challenges on the local market?

We all agree that the skill level in Romania is very high and that, by default, generates high expectations. Taking into consideration that the Romanian market is quite young, plus the fact that generation “y” is already “in office”, then we end up with a mixture that can be really challenging to handle. What works as a catalyst to all that is that people are enthusiastic and hardworking and that makes them highly engaged whenever there is a clear and shared vision in place.

M

ariana Gheorghe, CEO of Austrian oil and gas company OMV Petrom, said the local energy market has been grappling with falling consumption in the past five years, while investment costs for developing new fields have increased.

Gheorghe commented that the costs of exploration and production of new oil and gas fields have overshot initial estimates by 25 percent across the global industry. Energy analysts say that companies have to venture into dangerous fields with higher investment risks, such as the Arctic, to find fresh resources.

In the meantime, one of the biggest challenges for the company is the ongoing reduction of energy consumption by households and industry, partially underpinned by increasing energy efficiency.

“We have seen market drops in all the products we are operating with: in retail fuels, of 2 percent (e.n. reduction) after five years of reduction, in gas of 5 percent and in electricity of 2 percent. If they were limited to a single year, they would not be that dramatic, but we are looking at the evolution after five years, in each of which we have had these drops,” said Gheorghe last week, during the launch of Deloitte’s Central Europe Top 500 report.

by 57 percent to RON 1.9 billion (EUR 432 million) in the first semester against the same period last year, while sales fell 7 percent to RON 10.7 billion (EUR 2.4 billion). The company said weak demand for oil and gas and the increasing tax burden for this sector triggered the sharp fall in profits.

Offshore gas requires massive investments

Mariana Gheorghe, CEO, OMV Petrom

The CEO stated that the local gas market has fallen from around 17-18 bcm in 2006, when she took the helm at the energy company, to 12.5 bcm in 2013.

“This year, with the drop we have seen I think we will go below this level.

This change in demand is dramatic. In addition, also in the field of natural gas we see the geopolitical impact and the shale gas revolution affecting the price of gas,” added Gheorghe.

OMV Petrom saw its profits tumble

The CEO said the company was ready to invest over EUR 1 billion annually in the years to come to find new hydrocarbon resources, provided that the fiscal framework is stable, adding to the EUR 10 billion already spent in the last nine years.

OMV Petrom has also ventured into the Black Sea region to find new resources in partnership with US oil major ExxonMobil. The joint venture found a gas deposit off the Romanian coast in 2012 estimated to contain around 4284 bcm of gas, and is currently assessing the commercial value of the discovery.

President Traian Basescu estimated last week that the two companies would need to put up USD 4-5 billion to extract this gas if additional evaluations of the field confirm their find, according to Reuters newswire. ∫ Ovidiu Posirca

IT

Atos aims for headcount, customer and portfolio growth

I

T services corporation Atos is aiming to increase both its staff and its services, according to the firm.

“We ended 2013 with 660 employees and since the start of the year, we have grown our headcount by 40 percent, reaching a total of 920 employees locally. We are expanding intensely and we aim to keep a similar growth rate until the end of the year, given the demand from local and international clients,” Catalina Dodu, country manager at Atos Romania, told BR. Last year, the company reported a turnover exceeding EUR 25 million in Romania. In Central and Eastern Europe, its operations surpassed EUR 380 million.

“Locally, we deliver solutions to companies in energy, telecommunications and production. For them, we have implemented SAP solutions, mobile solutions for managing resources and activity in the field, desktop management services, infrastructure-related services as well as specific business solutions,” said Dodu.

Atos is present in Romania in

Courtesy of Atos Romania

What do you consider the milestones in developing your activity here?

In every startup, the first few months are the most challenging. The first milestone was ten months after our launch when we managed to get 35 members and organize several meetings. That gave us the track record to move further.

The second one was at the end of 2013, when we reached 100 members in just two years. ∫

OMV Petrom CEO cautions over energy consumption malaise, rising investment costs

Catalina Dodu, country manager at Atos Romania

three cities, Bucharest, Brasov and Timisoara, which together form one of the company’s global centers, delivering services to international customers.

“Since 2011, when Atos entered the Romanian market, investments have gone mainly into development and human resources. Apart from the offices we occupy in Bucharest, Brasov and Timisoara, we are mainly talking about investments in the professional development of employees, which includes annual training and certifications,” said the country manager.

Atos IT Solutions has received EUR 6.03 million in state aid to create 300 jobs, according to information in the local media.

“Based on government decision 797/2012, we have signed a contract in which we guaranteed a significant number of new jobs in centers in Timisoara and Brasov and we have committed to keep those jobs in the company for three years after receiving the state aid,” added Dodu. ∫ Otilia Haraga

www.business-review.eu Business Review | September 8 - 14, 2014

NEWS 5

INVESTMENTS

Ponta says Chinese projects to gain speed next year P

the moment when we can really move forward with the energy and infrastructure projects, not only those with China, but also those using EU funds and public private partnerships (PPP), because up to now they have been sabotaged and impeded for politicalelectoral reasons,” said the PM after boarding a high-speed train from Beijing to Tianjin. He is being backed by the center-left ruling coalition for the November presidential race.

Ponta was joined by ministers holding key portfolios, including transport and regional development.

Doru Lionachescu, chairman of Capital Partners, an investment banking consultancy, commented that the government was “terribly superficial” in its relationship with the Chinese, citing the fact that no project has moved forward. In fact, some have been changed. Initially, the government invited the Chinese to build a high-speed rail line linking Bucharest to Constanta, but this was turned down by the European Commission, the executive arm of the EU, because there is already one in operation that was modernized using EU funds.

gov.ro

rime Minister Victor Ponta has been on a three-day visit to China in a fresh effort to woo investors to back strategic projects in transport and energy.

The visit came less than a year after the Economic and Trade Forum China-Central and Eastern European countries, organized last November in Bucharest, which was attended by high-ranking politicians from the world’s second biggest economy. Projects pitched by Romanians to Chinese investors include the construction of two new reactors at Cernavoda, with an estimated cost of EUR 6.4 billion, and the pumped-storage hydroelectricity plant at Tarnita, which would cost another EUR 1.2 billion. Ponta said that Chinese companies have the financial and technical capabilities to deliver such undertakings.

According to media reports, Chinese firms were also interested in constructing the Pitesti-Craiova motorway and a new high-speed rail line between Bucharest and the eastern city of Iasi.

Some of these projects were also discussed during the economic forum in Bucharest, but there has been no announcement regarding their status.

Chinese PM Li Keqiang and Romanian PM Victor Ponta

“In 2015, after we have finished with the elections and the other things that usually hamper the (e.n. development) of projects in Romania, that will be

Lionachescu pointed out that Romania was not able to do anything in one year, adding that this was hard for the Chinese to understand.

“They (e.n. the Chinese) are functioning in a structure in which the political (e.n decision) solves everything,” Lionachescu told BR. “Everybody knew that the Chinese model required derogations (e.n. from EU law): they do not like tenders and for small and mid-sized projects they require state guarantees – and Romania cannot afford gaps in the deficit.”He concluded, “It is only talk with China.”

Romania inked a USD 271 million refurbishment deal with a Chinese company for a thermal plant and a memorandum of understanding with China’s Development Bank for the financing of a new residential project in Craiova city during last week’s visit.

Another two agreements regarding the peaceful use of nuclear energy and the enhancement of financial support were signed under the watchful eyes of the Romanian PM and his Chinese counterpart Li Keqiang. This added to the raft of memorandum signed last November. ∫ Ovidiu Posirca

EDUCATION

Lawyer Mona Musat opens EUR 2.5 mln private secondary school M Photo: Mihai Constantineanu

Photo: Mihai Constantineanu

ona Musat, managing partner at Musat & Asociatii, has opened the Romanian private school Aletheea on 7,000 sqm in north Bucharest. The two-level building has outdoor basketball courts and football pitches, a 500 sqm indoor sports hall and small gardens outside the ground floor classrooms where pupils can study.

“We believe that Romanian children should be able to learn outdoors, a concept that has started to become more popular worldwide,” explained director Daniela Stoicescu.

“I started this project in 2011 with the belief shared by every parent: to offer his/her child the best, from education to the independence that a good environment can provide. This was followed by the idea of having a different business, which most lawyers do. But none has a project like this,” said Musat.

Mona Musat, founder of Aletheea school

Daniela Stoicescu, the director of Aletheea school

She told BR that interest in education runs in the family, as she has close rel-

atives who are or were teachers.

The school, which can accommodate

almost 320 students, currently offers classes from preparatory grade to sixth grade for an intake of approximately 40 students. Fees will be EUR 550 per month, but are currently discounted to EUR 500 per month. The national curriculum will be used, and pupils have options such as creative writing, oral history, counseling and orientation, visual arts in Romanian fairytales, fashion design, human rights, environmental protection, informatics, national minorities, yoga for children and intensive foreign languages.

Clubs include theater in English, puppet theater, stage acting, volunteering and civic involvement, quilling, animation, photography, origami, mathematics, chess, financial education, and also a selection of artistic and sporting activities. ∫ Oana Vasiliu

www.business-review.eu Business Review | September 8 - 14, 2014

6 FOCUS

Investment fatigue sends economy back into recession Romania has slipped into its third recession since 2009, triggered by the rollout of new taxes and the slowdown of public and private investments, say economists. ∫ OVIDIU POSIRCA Eurostat, the statistics office of the EU, announced last month that Romania’s economy had posted the steepest fall, namely 1 percent of GDP, in the second quarter against the first. Although the flash estimate for the first quarter indicated a 0.1 percent expansion of the economy, revised data showed that in fact the economy contracted in the first three months too, by 0.2 percent.

Foreign investors worried by increased tax burden Mihai Bogza, president of the Foreign Investors Council (FIC), reckons that the enforcement of the special construction tax and the levy of a new fuel excise tax of EUR 0.7 have further pushed up Romania’s tax burden against the EU average.

“Considering that the private sector was already weakened after years of crisis, the increase of the fiscal burden has significantly reduced its potential to generate growth and the first results can already be seen. Although I do not want to make any estimates for the rest of the year, I am worried about the danger of returning to a prolonged period of recession,” Bogza told BR. The FIC president added that the country has to deal with a “harmful combination” of excessive taxation and inefficient use of resources by the state.

The government raised over EUR 300 million from the construction tax and new fuel excise in the first semester, according to business daily Ziarul Financiar, which cites data from tax collection agency ANAF. However, oil companies said that the new fuel excise has hurt their sales of diesel and gasoline. Consumers will face higher electricity bills due to the adoption of the construction tax, which applies to anything from electricity poles to telecom antennas and gas transport pipelines.

Flavia Matei, senior consultant at

Mihai Bogza, president, Foreign Investors Council (FIC)

Cristian Nacu, partner, Enterprise Investors

Courtesy of Ensight Management Consulting

The Romanian Statistics Institute (INS) sent the updated economic data for the first semester solely to Eurostat, which said the local economy had gone into technical recession.

Asked why the INS did not also make the revision public in Romania, Tudorel Andrei, president of the statistics office, blamed it on young minimum-wage employees in the communication department, according to news portal www.hotnews.ro.

Andrei pointed out that the INS provides data to political decisionmakers, adding that the office is not under any political pressure. The first economist to discover that Romania had gone back into technical recession was Andrei Radulescu, senior economist at Banca Transilvania.

“It a short-term technical recession, brought about by the underperformance or the severe contraction of the gross formation of fixed capital of investments in the economy (…) In the first and second quarter, productive investments contracted at a very dramatic rate, with productive investments falling by 10 percent against last year. The drop was determined by the tense regional context, and, domestically, by the reduction of public investments by over 30 percent against the first six months of last year,” Radulescu told TV station Digi 24.

The government preferred to look at the annualized GDP growth rate of 2.4 percent in the first semester, down from 3.8 percent in the same period of last year. Prime Minister Victor Ponta went online to say that Romania had been driving a car at 130 km/h, but has now slowed down to 100 km/h, although it is still “going forward”.

“Although detailed data have not

Courtesy of FIC

Selective statistics

been published about the two decreases (0.2 percent in Q1 and 1 percent in Q2), we anticipate a continued reduction of investments, including in the public sector. At the same time it is possible, at a quarterly level, for the impact of next exports to have been negative in Q2 against Q1,” Dumitru Dulgheru, coordinator of the macro research and fixed income titles team at BCR, told BR. The International Monetary Fund (IMF) forecasts that Romania’s economic growth will reach 2.8 percent this year, while the World Bank recently improved its estimate to 2.8 percent too. The European Commission, the executive arm of the EU, said in its spring forecast that the Romanian economy was set to grow to 2.5 percent this year.

Flavia Matei, senior consultant, Ensight Management Consulting

Andrei Radulescu, senior economist, Banca Transilvania

Ensight Management Consulting, pointed out that this year’s economic growth ought to have been primarily driven by increased domestic consumption, which should have offset the slowing growth in exports.

She said this “beneficial context” was negatively impacted by the rollout of the construction tax and the new fuel excise, which impacted the investment plans of big companies in Romania.

Ponta suggested Romania should leave behind the austerity paradigm and focus more on growth. Among

the pro-growth measures he put forward were an increase in the minimum wage and a tax exemption for reinvested profit.

Earlier this year, the government approved a scheme designed to lower individual borrowers’ loan repayments, which should have benefited close to 1 million people. The measure was shelved, which the PM blamed on the banks for lacking the “enthusiasm” to apply it.

Critics of the PM claim he is painting an unrealistic picture of the economy to boost his chances in the

www.business-review.ro Business Review | September 8 - 14, 2014

Although I do not want to make any estimates for the rest of the year, I am worried about the danger of returning to a prolonged period of recession,” Mihai Bogza, FIC president. presidential race this November.

Ponta will be the candidate of the center-left ruling coalition, comprising his own party the PSD, the UNPR and PC.

Public investment apathy

Country lacking mega-investments Bogza of the FIC, which has over 130 multinationals as members, said foreign direct investment seems to have

stabilized at around EUR 2 billion anually, which is too low for an economy with 20 million consumers. He said that most of the FDI flows are going into the recapitalization of recession-hit companies and not towards the setting up of new companies.

“As I have said on previous occasions, I cannot even remember when I last saw a really big investment in Romania, let’s say of around EUR 1 billion,” said Bogza. “Romania has not yet been able to restart that virtuous circle broken by the crisis, in which the positive expectations of investors brought money into the economy, creating jobs, which in turn increased domestic demand and attracted new investments.”

The FIC president warned that the positive momentum created by Romania’s accession to the EU back in 2007 has run out of steam since the financial crisis, suggesting that a lot of effort is required to create a new wave of positive expectations.

Growth rate (compared to previous quarter) Q2 2014 Q1 2014 Q4 2013 Q3 2013

-1.0% -0.2% 1.2% 1.5%

Source: Eurostat

The PM explained why public investments came close to a standstill in the first seven months and urged the authorities to speed up expenditure in the next three months.

“I am appealing to all ministers, and to all public institutions. We have beaten an undesirable record. After seven months we have a deficit of 0.2 percent – I think we can compare ourselves only to Germany,” the PM told ministers in a government meeting in late August.

Ponta went on to say that Romania has money it is not spending, adding that this year’s deficit target is 2.2 percent of GDP. According to data from the Ministry of Budget, investment expenses, which include capital expenditure and co-financing for projects devel-

oped through domestic or external (EU funds) financing, amounted to RON 11.8 billion (EUR 2.67 billion) in the first seven months, accounting for 1.8 percent of GDP. This was down from RON 14.9 billion (EUR 3.4 billion) in the same period of last year. However, the ministry claimed investments were flat year-on-year, and that the additional expenditure last year was generated by the payment of arrears.

Cristian Nacu, partner at Polandbased PE fund Enterprise Investors (EI), told BR that the drastic reduction of infrastructure investments has dragged the economy back into recession, with a “disastrous impact for the construction industry”. EI’s portfolio of holdings in Romania includes Macon, a producer of building materials.

FOCUS 7 FDI to Romania fell by 10.3 percent to close to EUR 1.2 billion in the first half of this year, according to the National Bank of Romania (BNR). Economists expect it to stay in the EUR 2-3 billion band in the years to come.

Eurozone weighs in on domestic growth Romania’s industrial output may slow down more markedly in the second half of this year, especially if domestic demand in the Eurozone slumps, suggested Dulgheru of BCR. He said that the overall growth of the economy in 2014 depends on the agricultural harvest.

The Eurozone reported zero growth in the second quarter, while the EU28 grew slightly, by 0.2 percent.

With the Eurozone being the main recipient of Romanian exports, Ponta suggested Romania should tap other markets in Africa and Asia, as the Eurozone was “in recession”.

“Romania’s exports could be impacted by the weak growth rates in the EU28 area, but the growth forecasts from the start of this year did not rely on exports as the economy’s main growth factor this year,” said Matei of Ensight Management Consulting.

According to BNR, exports of goods rose by 5.4 percent in June compared to the same month of last year. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | September 8 - 14, 2014

8 FOCUS

The professional midlife crisis Increasing retirement ages at European level, which should counteract the effects of aging populations on overburdened pensions systems, may also spell new opportunities for 40+ employees to secure a job and challenge discrimination – but the jury is still out. ∫ OTILIA HARAGA

Courtesy of Zamfirescu Racoti&Partners

Courtesy of Andreea Bucur

Andreea Bucur, senior HR professional

Catalin Micu, managing associate Zamfirescu Racoti & Partners

Courtesy of George Butunoiu

Courtesy of Musat&Asociatii

“At 40, the first age-related problems appear in employees’ professional lives: a clear separation from those under 30, the feeling (on both sides) of belonging to different groups, no longer working and collaborating the same, including with those outside the company such as customers or providers. The first physical differences start to show as well: what they look like, the habits and tastes specific to this age category, the behavioral differences, energy levels and fatigue, plus social interactions,” executive search consultant George Butunoiu tells BR. Which invites the question: what are the chances of landing a good job after 40? Opinions are split among the HR pundits canvassed by Business Review.

Some of them, such as senior HR professional Andreea Bucur, believe this age group is indeed waging a battle against ageism in Romania. “There is a discriminatory attitude on the market in recruitment on certain sectors and for certain jobs,” she says.

Official data from the Ministry of Labor, that Ileana Lucian, partner at Musat & Asociatii, outlined to BR, show that the 40-49 age group registers the highest unemployment rate at national level.

Moving up the age axis, workers between 50 and 64 represent only 22 percent of the economically active population. “As a result, we can say that employment prospects in Romania are seriously affected by the age factor,” says Lucian, commenting on the data from the National Institute of Statistics.

Butunoiu adds, “Prospects begin to decline between 40 and 50, but not too much. After 50, however, they fall fast. In Romania, this phenomenon is more marked, because the wider trend to avoid hiring elderly people is exacerbated by stereotypes about the mentality and frustrations of those who lived under and were shaped by communism.”

He believes that these differences do not affect senior employees in key managerial positions as much, but have an impact on the professional activity and social relations of those in lower positions, as they perceive the differences between themselves and younger colleagues as a threat, says Butunoiu.

“Very few of them are realistic, come to realize their situation and deal with it. Most feel they have been done an injustice (cognitive dissonance) and so become frustrated.

This is usually the beginning of the end. They enter into a vicious circle, and there is no getting out: the more frustrated they are, the more their chances of reintegration/readjustment decrease. This increases their frustration even more, it starts to become visible, and there you go! No one wants to hire someone who is frustrated,” he concludes.

For Bucur, the truth lies in the middle. “Employers’ caution is due both to the lack of compatibility between job requirements and the candidates’ real skills, as well as the inability of many employees of this age to be flexible, learn new things and adapt to new technologies,” she says.

However, Bucur says that it greatly depends on the individual. “I can think of many examples of people who have managed to do something else and started from scratch even after 40 or 50. The reality is that every individual can make a difference,” she says.

Florin Godean, country manager at Adecco Romania, tells BR that employers do not discriminate. “When they find a candidate that is up to their expectations, the age, marital status and sex of that employee do not matter. Prospects are high and real.”

The Romanian state aims to discourage the overlooking of senior candidates and provides incentives for employers who give professionals over 45 a chance.

Lucian outlines that Law 76/2002

Ileana Lucian, partner at Musat & Asociatii

George Butunoiu, executive search consultant

on the unemployment insurance system and labor force grants employers who hire someone over 45 for an unlimited period RON 500 monthly (the current value of the benchmark social indicator) a year for every such hire, provided the job lasts for at least 18

months.

In Belgium and Bulgaria incentives are also granted to employers who provide jobs or improve working conditions for senior employees, she adds.

“The real issue, I believe, is the fact

www.business-review.eu Business Review | September 8 - 14, 2014

“Prospects begin to decline between 40 and 50, but not too much. After 50, however, they fall fast. In Romania, this phenomenon is more marked, because the wider trend to avoid hiring elderly people is exacerbated by stereotypes about the mentality and frustrations of those who lived under and were shaped by communism.”George Butunoiu, executive search consultant that at this age, once one has a certain training in a field, it is quite hard to readjust, take a step back in one’s career and move to another industry or to a new position that one believes is below one’s worth,” Godean tells BR. The areas where the European market has vacancies suited to more senior candidates remain those that involve knowledge of foreign languages, and jobs in service centers and retail, which do not involve much movement, but conducting operations at a desk and computer, says Godean.

“The European market demands cheap and well skilled labor. There are fields where the offer is much higher, such as IT, production/FMCG,

agriculture, the medical sector, transportation and construction,” adds Bucur.

Asked by BR, online recruitment website BestJobs provided some statistics on senior employees looking for work in Romania.

In July, there were 600,000 job seekers aged over 35, of whom 395,000 were between 35 and 45, and a little over 200,000 over 45.

Out of the total number of job seekers on BestJobs, 34 percent had graduated from a faculty, while 35 percent had between 10 and 20 years of experience on the labor market.

Most were looking for positions in sales and engineering, representing 23 percent each.

FOCUS 9 EU wants more workers active for longer The public pensions system has been regulated by Law 263/2010 since January 1, 2011. The law will raise the retirement age to 60 for women and 65 for men by January 2015. However, the women’s retirement age will continue to grow gradually until 2030 from 60 to 63, Lucian tells BR. “Europa 2020, launched in 2010 by the European Commission, reports that in the EU the population is aging fast, and the economically active proportion will start to shrink in 2013-2014. This, combined with the growth in the number of retired people, will put additional pressure on social protection systems,” she warns.

An important target of EU member states is to grow the working population at European level, which includes the greater involvement of senior workers. “In Europe, including Romania, the ratio of retired people to the active population is expected to grow,” Lucian says.

The debate agenda of the Chamber of Deputies features a bill that will bring changes to Law 263/2010, intended to raise women’s retirement age to 65. The trend is to gradually equalize the retirement ages of women and men over 2030-2035, according to the law firm partner.

She adds that this is a consequence

of the recommendations that the European Commission sent to Romania, “in the context of a society with an aging population that affects the financial sustainability of the public pensions system.”

The Commission also promotes, in its recommendations, the provision of jobs for senior employees, she adds.

“The market has selection mechanisms. Each organization will have ways to choose between people who are at the end of their professional career and those who are just beginning.

Lately, we have seen that skilled personnel are favored over those starting out. In spite of this, I doubt the increase in the retirement age will lead to market saturation, since there is a deficit of skilled employees,” Catalin Micu, managing associate Zamfirescu Racoti & Partners, tells BR. He adds that the increase in active workers brought about by the rising retirement threshold will trigger new approaches in life insurance and pensions schemes, but will ultimately save the state budget money.

Godean also argues that the rise in the retirement age brings advantages in personal and psychological development for workers, because by carrying on with their professional lives they will stay active and engaged. otilia.haraga @business-review.ro

www.business-review.eu Business Review | September 8 - 14, 2014

10 PROPERTY

BRIEFS Selgros Cash & Carry invests EUR 6 million in refurbishing two Bucharest stores The Romanian subsidiary of German cash & carry company Selgros has invested EUR 6 million in refurbishing and redesigning two of its four Bucharest stores, located in Baneasa and Berceni.

The process started last year in Iasi and “depending on the availability of funds”, will continue over the coming years with the remaining 16 branches Selgros has in Romania.

DTZ Echinox: Retailers running out of space to expand The vacancy rate of prime shopping centers in Romania dropped below 5 percent in the first half of the year, according to a DTZ Echinox report. Local modern retail stock stood at 2.787 million sqm at the end of H1, 31 percent of which was located in Bucharest. Modern retail space density stagnated at 138 sqm/1,000 inhabitants, and by the end of the year DTZ estimates that it will reach 141 sqm. The density in Bucharest is 465 sqm/1,000 inhabitants.

Tagor appoints new sales manager for Adora Urban Village Anca Dumitrescu has been appointed sales manager by real estate developer Tagor. She will be responsible for the Adora Urban Village residential project in south-western Bucharest and for another project the developer plans to build in Pipera, in the northern part of the capital. Dumitrescu has over eight years of professional experience in real estate. She has previously worked for West Park (Rom – Canada Group, part of BSG Investments) and CB Richard Ellis.

Vulcan Value Centre aims for EUR 4.1 mln in rent, 7.5-8 million visitors in first year After opening the EUR 47 million Vulcan Value Centre retail park last week, the project’s developer, real estate investment fund New Europe Property Investments (NEPI), expects revenues from rents of EUR 4.1 million and between 7.5 and 8 million visitors in the first year, Tiberiu Smaranda, NEPI’s executive director, told BR. ∫ SIMONA BAZAVAN Vulcan Value Centre is located in south-west Bucharest, a lower-income part of the city that has so far proved unprofitable and unwelcoming to modern retail developments. NEPI said it chose the location because of the area’s “high development potential and high number of residents,” added Smaranda.

The developers estimate the project’s primary catchment area at 550,000 inhabitants.

The retail park, which has a 25,000 sqm GLA, is branded as Bucharest’s first “value center”, a shopping concept that targets “average income shoppers” by bringing together several types of stores offering “quality products at accessible prices”.

Vulcan Value Centre is anchored by a Carrefour hypermarket which covers 9,600 sqm and will feature a 2,500 sqm shopping galleria. This is the French retailer’s 26th local hypermarket and the 9th in Bucharest. The entire center has

open a new shopping center – Shopping City Targu Jiu. These two retail parks – Vulcan Value Centre and Shopping City Targu Jiu – are the only modern shopping centers to be opened this year in Romania. According to a previous JLL report, their combined surface, 62,000 sqm, marks the lowest annual level reported since 2005. simona.bazavan@business-review.ro

Hanner Group has sold about a thrid of the 69 apartments that form part of the first block of The Park, a EUR 37 million residential project the Lithuanian real estate developer is developing near Tineretului Park in Bucharest. ∫ SIMONA BAZAVAN

Local retailer Profi has rented 2,500 sqm for a new warehouse in a temperature-controlled facility in the 17,000 sqm VGP logistics park in Timisoara, western Romania, Mediafax newswire has reported. The new warehouse will support the retailer’s expansion strategy in the west of the country, according to real estate firm DTZ Echinox. Profi owns 244 supermarkets in Romania but plans to expand to 400 branches over the next few years.

Hanner has previously been involved as a partner in the development of City Center Residence and Carol Park Residence in the capital, but The Park is the first project it is developing on its own on the local market.

Construction of the first block began last year and was completed in the first semester of this year. Another three blocks will be built as part of the same project by 2017. The Park will comprise 460 apartments and will require a total investment of about EUR 37 million, the money coming entirely from the developer’s own funds, said Mindaugas Valuckas, the company’s CEO, last week.

The target is to sell at least five apartments per month, a level that has been met so far, he added. Should sales go above 10 units per month, the developer will consider increasing prices. At present, a studio in the project costs

IPSO Agricultura, an importer of farming equipment, opened a new headquarters on DN 69 near Sanandrei in Timis county last week, following a EUR 2 million investment. The new site is part of a network of eight regional centers and seven working stations. It covers 15,000 sqm.

more than 50 stores and is presently 95 percent leased, according to the developers. Other tenants include H&M, C&A and Lems.

Works on the site started in February.

Following completion, NEPI has increased its commercial space portfolio to approximately 330,000 sqm (GLA). In Romania, it manages eight other shopping centers and owns several office schemes. On October 16 the fund will

Hanner sells 30 pct of first phase of EUR 37 mln The Park Bucharest residential project

Profi rents 2,500 sqm in VGP Park Timisoara

IPSO opens EUR 2 mln HQ in Timis county

Mall over: Vulcan Value Centre is one of only two modern shopping centers to be delivered this year, both developed by NEPI

Mindaugas Valuckas, CEO of Hanner Group

EUR 55,000, a one-bedroom unit is on the market for EUR 75,000 and prices reach EUR 95,000 for two-bedroom flats and EUR 120,000 for the threebedroom ones.

Hanner Group decided to start the project last year mainly because it owned the land, said Mindaugas. Also,

although “the local residential market is not booming, there is potential. It should improve, but more in terms of quantity. I don’t expect a price increase,” said Mindaugas adding that he believes local buyers will start looking beyond the price and become more demanding in terms of quality and energy efficiency.

The plot of land on which the project is being built was bought in 2006 and the developer planned to start the project before the crisis but was forced to postpone it.

Hanner Group is currently developing about 1,000 apartments in eight European cities. The firm has been active in real estate for more than 20 years and owns assets – residential, office, commercial and logistics – worth approximately EUR 1 billion. It is present in the Baltic States, Romania, Ukraine, Russia and Belarus and is preparing residential projects in Germany and the UK. simona.bazavan@business-review.ro

www.business-review.eu Business Review | September 8 - 14, 2014

12 WOH’S

WHO’S NEWS

BR welcomes information for Who’s News. Submissions may be edited for length and clarity.

Get in touch at simona.bazavan@business-review.ro

Ana Maria Andronic

sion at Bancpost. After that, she moved to ABN AMRO Securities Romania as general director. Butac began her banking career at the National Bank of Romania. She holds a PhD in economics and is a graduate of the Faculty of Finance, Insurance, Banking and Stock Exchange, part of the Academy of Economic Studies in Bucharest.

has been promoted to partner at Biris Goran.

She joined the law firm in 2008 and heads the IP, IT & media practice, areas where she has vast experience. Previously, she clerked for the Honorable Judge James J. Brady from the US District Court, Middle District of Louisiana, and was a research fellow with the Pretrial Justice Institute in Washington, DC. Before moving to the USA, Andronic was a lead attorney at the American Bar Association/Rule of Law Initiative in Bucharest. She was admitted to the New York State Bar in 2011 and to the Bucharest Bar in 2007. Andronic has an LL.M. in Intellectual Property and Internet Law from Louisiana State University, Baton Rouge. She graduated from the National Institute for Magistrates, Bucharest, in 1998 and from the University of Craiova, Faculty of Law, in 1997.

Stefan Bucataru

has been appointed GM of Agricover, the biggest company of agribusiness group Agricover, in early August.

He previously held the position of general manager of Transelectrica for ten months, according to ZF.Bucataru has over 17 years of experience in sales management and was formerly general director of Canadian consultancy firm Veldster Management and Consulting. He has also worked for South African Breweries International Management, Global Finance International and Transelectrica. A graduate of the Polytechnics University in Bucharest, he holds a post-grad certificate from Swinburne University in Australia in business administration and a master’s degree in the same field from the University of Durham Business School in the UK.

Claudia Butac

is the new VP of Raiffeisen Banca pentru Locuinte following central bank approval. She previously worked for Citibank Romania as VP responsible for the retail and premium clients division. Between 2009 and 2011 Butac was the director of the private banking divi-

Luana Crivat

was appointed HR business leader for GSK Romania, which includes GSK Pharma, GSK Consumer Healthcare, Europharm Distribution and the factory in Brasov. With over eight years in the pharma industry, Crivat joined GSK Romania in 2006, as a medical representative. Two years later she joined the Human Resources department as an executive. Starting with June 2010, Crivat continued her career in GSK Romania from the position of regional sales manager, coordinating the sales team. One year later, she came back to the HR department as HR manager of the Pharma division. Crivat replaces Iulia Dobritoiu, who was appointed HR business leader Middle East and Africa Supply Chain.

Alexandru Dugaia

is the new coordinator of the supply chain finance department at BCR. He has over ten years of professional experience in banking. Dugaia is returning to BCR after having worked in the factoring department of BRD. He is a graduate of the Faculty of Finance, Insurance, Banking and Stock Exchange, part of the Academy of Economic Studies in Bucharest.

Dugaia also holds a master’s degree in international business management from the same institution.

Jon Garrison

joined UPC Romania in early August as financial director, after having worked as deputy financial director for Unitymedia KabelBW GmbH since 2010.

The financial director position was not part of the cable operator’s hierarchy until this appointment. Garrison is a graduate of Denver University, from where he also holds a master’s degree in finance and accounting. In 2005 he joined Liberty Global as a VP in technical accounting, responsible for the group’s financial policies in Europe.

Stefanita Georgescu

has been appointed senior associate in the real estate practice of Biris Goran. He joined the law firm earlier this year as a senior attorney primarily assigned to the firm’s real estate practice. Georgescu has over 11 years of experience in providing transactional and regulatory advice concerning a broad range of domestic and cross-border transactions.

His experience includes five years as a de facto in-house lawyer with ING Romania and two years as chief inhouse counsel for the Romanian companies belonging to Kardan Group.

Anke ter Hoeve

is the new deputy head of mission and counselor of the Embassy of the Netherlands in Romania, starting August 25. She is replacing Paul Ymkers, who has completed his mission and left Romania. Her previous position was policy coordinator of the North Africa and Middle East (MENA) Department within the Ministry of Foreign Affairs, the Netherlands.

Stephen Karl

is the new managing director of Bunge Prio Romania, starting September. He replaces Giovanni Quaglia, whose temporary mandate ended on August 31. Karl previously worked as managing director for Almost Group Romania, a position he held for two years. He has ten years of experience working for the BASF group, holding various positions in the USA, Germany, New Zealand and Spain.

Markus Marquardt

is the new food & beverage director of the JW Marriott hotel in Bucharest..

Marquadt supervises the teams of the six restaurants at JW Marriott: JW Steakhouse, Cucina, Champions, Vienna Lounge, Pavilion Lounge and the summer terrace The Garden. He also oversees the banqueting and events division. Marquardt has 16 years of experience in the industry, having previously worked as sous chef of Panama Marriott Hotel starting with 1998. In 2005, he joined the Budapest Marriott Hotel as food & beverage director.

Razvan Patrunoiu

has been appointed country managing director of the local subsidiary of

Accenture. He is replacing Andrea Multari who had held the position since 2011. Multari’s new position at the firm will be infrastructure services, security domain lead for the Middle East. Patrunoiu joined Accenture in October 2010 as finance & accounting lead for the Bucharest delivery center. In 2011 he was appointed service delivery operations lead, responsible for all activities in Bucharest. Three years later his role was extended to lead the Timisoara delivery center as well. Patrunoiu, 37, has professional experience in finance and commercial operations. He previously worked for Tchibo Romania as finance and services director and country director and for Zapp as finance director.

Rene Schob

is the new country managing partner of Mazars Romania starting September. He replaces Jean-Pierre Vigroux, who is retiring from the post but will take up an advisory role, according to the company. Schob, who previously served as tax partner, has been leading the tax advisory department since September 2013, following the merger between Mazars and Adevaris, the firm that he represented as managing partner and co-founder. Mazars has also enlarged its team with a new tax partner following the arrival of Edwin Warmerdam, who heads the Mazars Dutch desk, a new service launched to assist the Dutch business community.

Eugen Suman

is the new creative director for Kubis Interactive, the digital marketing agency.

Suman has over eight years of experience working in advertising and joined the Kubis team after working at agencies such as McCann Prague, Young & Rubicam Prague, Jandl Bratislava.

He also worked as a copywriter in Romania for Graffiti BBDO, Grey, Ex Aequo and Godmother. Eugen Suman returns to the country working in Prague as a creative director for the local branch of McCann.

www.business-review.eu Business Review | September 8 - 14, 2014

FILM 13

Food and film fuse at Divan The Divan film and culinary art festival brought the spirit of the Balkans to an old Danube grain-shipping port, with movies, documentaries, debates and workshops. ∫ OANA VASILIU

A culinary cruise Foodies who have enjoyed the sensorial gastronomic experience at Lacrimi si Sfinti restaurant in Bucharest knew what to expect from the feast prepared for the guests at Divan. From local

Courtesy of Divan Festival

For five years now, the event has taken place at Cetate Harbour, Dolj County, and is well known for bringing together writers, artists and filmmakers to find creative solitude on the Danube shores. The most eagerly awaited moment of the festival was the appearance of Lucian Pintilie, who came to mark the 20th anniversary of his movie Un été inoubliable (An Unforgettable Summer). The Romanian director attended the event with Marie-France Ionesco, the daughter of Eugen Ionesco. She read some lines from Pintilie’s autobiographical book titled Bricabrac.

cheese specialties from the Danubian meadows, local vegetables, Danube fish, pork and veal to fruit pies and plum dumplings, the local flavors were put together by Mircea Dinescu, who managed to recast centuries-old Romanian recipes in a new chapter in the evolution of national gastronomy.

“Cetate Harbour can accommodate almost 50 people in 18 en suite rooms, three apartments with two separate rooms and nine rooms in the central mansion with shared bathroom,” Masa Dinescu, administrator of Mircea Dinescu Poetry Foundation and wife of Romanian poet and co-organizer of the event, Mircea Dinescu, tells BR. Five years ago, the Dinescu family, who own a vineyard of almost 100 ha in Dolj county, started to invest in wine production. The grapes come from the winery supplying Cetate and Galicia Mare, two young vines of 50 ha each.

“We have both local varieties such as Romanian Tamaioasa, Feteasca White and Black Feteasca, and fine European

Romanian poet Mircea Dinescu invites guests to a gastronomic journey

ones such as Chardonnay, Italian Riesling, Sauvignon Blanc, Pinot Gris, Muscat Ottonel, Pinot Noir, Merlot and Cabernet Sauvignon. Our plantation in Galicea Mare also includes a parcel of Shiraz and has about 3 ha of old vines (planted in 1950), with hubs and Fetească Tămâioasă Romanian Black,” says Masa Dinescu. Currently, the fam-

ily’s wine can be tasted at Cetate Harbour and Lacrimi si Sfinti, and is on sale in a small wine shop in Craiova.

“Probably at the end of September we will open another wine shop, this time in Bucharest, in the Old City Center,” she added. oana.vasiliu@business-review.ro

The movie oracle Sorin Mindrutescu, GM of Oracle Romania, was one of the organizers of the Rasnov Historical Film Festival, which took place in Rasnov, Brasov county, last month. He told BR how an apparent film industry outsider can be part of the equation and shared his personal recommendations from the works screened during the festival. ∫ OANA VASILIU

How did you become part of the organization of the Rasnov Historical Film Festival?

In the summer of 2012, I came to the festival by chance, without knowing too much about the event. I was impressed by the unique combination of films, events and special guests. What really impressed me was that the organizers managed to bring history into the present. More precisely, they screened Steven Spielberg’s movie Munich – a drama based on the Israeli government's secret retaliation against the Palestine Liberation Organization after the Munich massacre at the 1972 Summer Olympics. For that screening, the organizers brought

Courtesy of Rasnov Historical Film Festival

Since when have you had a passion for movies?

I guess I always have. I could not tell you the exact moment when I became addicted to cinema, but I remember my college days when I used to hunt quality movies in Bucharest’s cinemas.

to the festival Henry Herscovici, who had carried the Israeli flag at the opening of the Olympics and witnessed the events presented in the movie. That was the moment when I decided to be part of the festival, because of its ability to combine past and present.

How was the sixth edition of the festival?

This edition brought to the Rasnov citadel and the Amza Pellea cinema

over 40 documentaries and fiction films, historical debates and witness testimonies, interviews with actors and directors, concerts and book presentations. This year, we celebrated 100 years since the First World War, 25 years since the 1989 revolution and also the Los Angeles Olympics in 1984.

Moreover, 29 students from Romania and the Republic of Moldova participated in the festival, attending conferences held by Iulian Fota, Bogdan Olteanu, Sergiu Celac, Adrian Cioroianu, Theodor Paleologu, Ion Caramitru, Sever Voinescu and many others, as well as the ambassadors of Slovakia and the Czech Republic, Jan Gabor, and Jiri Sitler.

Why did you choose to feature Corneliu Coposu?

One of the major themes presented at the festival was the revolution of 1989, so we decided to organize a photo exhibition focusing on Corneliu Coposu – which turned out to be a winner – including pictures from his political life as well as his time in prison. It ran until the end of August.

What are your recommendations for anyone who did not attend the festival?

Closer to the Moon, directed by Nae Caranfil; Hil789 The Last Stronghold (Nicholas Dimancescu), Behind the Curtain (Bogdan Mustata) and Premier Noël dans les tranchées (Michael Gaumnitz) are among the must-sees.

The festival also featured the premiere of Patrice Leconte’s latest movie, Une promesse, and Jean Renoir’s La grande illusion. Other recommendations would be La France (Serge Bozon), Din Manner der Emden (Berengar Pfahl) and Walesa: Man of Hope (Andrej Wajda).

You were talking about a project called the Romanian Cinema Museum. How do you see this museum?

The Romanian Cinema Museum is a dream built with the support of Irina Margareta Nistor. I strongly believe in the value of the Romanian film school and that all these success stories deserve to be under the same roof. oana.vasiliu@business-review.ro

www.business-review.eu Business Review | September 8 - 14, 2014

14 CITY

The sounds of September ∫ OANA VASILIU September begins with the George Enescu International Competition, Romania’s sole classical music contest of international renown. The event – a companion to the biennial festival – keeps the composer’s spirit alive by providing a platform for the younger generations of musicians he inspires. More than 230 young artists from 36 countries applied to take part. From Romania, ten violinists, fourteen pianists and two cellists will compete. With 81 participants, the piano contest will be the toughest, with the violin and cello sections having 64 and 34 competitors respectively.

Moreover, 41 musical works have been submitted for the composition section. Participation is up 20 percent on 2011. The youngest Romanian contestant is violinist Mircea Dumitrescu, who, at 16, is also the second-youngest competitor overall, after Briton Stephanie Childress, 15, a fellow violinist.

The competition runs from September 6-27, at the Romanian Athenaeum and the National Music University.

Violinist Alexandru Tomescu will open Enescu competition

Prague Radio Symphony Orchestra will have two representations at RadiRo Festival

Bucharest, surrounded by surreallooking architecture from the 19th century that survived the communist urban planning of the 1980s.

Tickets cost RON 65 for one day or RON 130 for a full subscription.

Towards the end of the month, from

Admission to the concerts and recitals was free based upon online registration, but all seats have now gone.

Mid-September brings the Balkan spirit to Bucharest when Shantel & Bucovina Club Orkestar, Čači Vorba, Django Lassi, Kottarashky and The Rain Dogs, Mahala Rai Banda and Kiril Djaikovski ft TK Wonder & Ghetto Priest will converge on the little known Uranus Garden for the BalKaniK! Festival.

The fourth run of the event, which begins on September 12, comprises three days and three nights of energetic concerts and arts and crafts workshops at Uranus Garden, a hidden courtyard in the heart of

Tickets for individual concerts are still on sale at prices from RON 60-100.

Mahala Rai Banda returns for another extravagant show

FOUNDING EDITOR Bill Avery PUBLISHER Anca Ionita EDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - senior journalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai Constantineanu

ISSN No. 1453 - 729X

September 20-27, Bucharest will host the second edition of RadiRo – Radio Orchestras International Festival.

The event will bring to the capital five radio orchestras, along with internationally renowned soloists and conductors. The Finnish Radio Symphony Orchestra, Prague Radio Symphony Orchestra, Stuttgart Symphony Orchestra, Orchestre National de France and the Romanian Radio National Orchestra will play under the baton of world acclaimed conductors Joshua Weilerstein, Ondrej Lenárd, Stéphane Denève, Case Scaglione, Vassily Sinaisky, Tiberiu Soare and Cristian Mandeal.

Pianists Jonathan Biss, Jan Simon and Horia Mihail violinists Alexandru Tomescu, Nikolaj Znaider and Vadim Gluzman, soprano Katarina Jovanovic and mezzo-soprano Ruxandra Donose are among the virtuosos due to perform.

LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean

EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu MARKETING Ana-Maria Stanca, Ana Maria Andrei, Iulia Mizgan PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

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