Business Review Issue 32, September 29- October 5 2014 by Business Review

INTERVIEW: Romania should attract at least EUR 2.7 billion in foreign direct investment in 2014, and focus more on pitching investment projects to countries less impacted by the financial crisis, says Alexandru Nastase, head of the DPIIS »page 7

ROMANIA’S PREMIER BUSINESS MAGAZINE

SEPTEMBER 29 - OCTOBER 12, 2014 / VOLUME 18, NUMBER 32

PHARMA PHARMA FIRMS ARE CALLING FOR A BIGGER MEDICINE BUDGET TO FINANCE THE UPDATE OF THE REIMBURSED DRUGS LIST, AND FOR CHANGES TO THE CLAW BACK, SAID OFFICIALS DURING THE FOCUS ON PHARMA EVENT » PAGE 8

THE GREEN GREEN GRASS OF HOME Some firms are reluctant to hire Romanian graduates returning from abroad, many of whom grapple with whether to come home » page 6 NEWS

NEWS

Gas risk

Tax break

The liberalization of gas prices for industry should be postponed to prevent any spikes during peak demand, says Frank Hajdinjak, CEO of E.On Romania

Investors welcome the reduction of CAS but say it should not lead to an increase in the tax burden next year, impacting firms’ investment plans

» page 4

www.business-review.eu Business Review | September 29 - October 12, 2014

NEWS 3

NEWS in brief ENERGY Lukoil Europe Holdings increases Petrotel Ploiesti capital by EUR 35 mln Lukoil Europe Holdings BV, the majority shareholder of the PetrotelLukoil refinery, is planning to increase the refinery’s share capital by RON 153.7 million (EUR 35 million), to RON 455.3 million. Shareholders will vote on the increase on October 22. Lukoil Europe Holdings owns 97.1 percent of the refinery’s share capital, with the remaining 2.9 percent split between other shareholders. The company also manages a network of 300 gas stations in Romania. Petrotel Lukoil posted a turnover of RON 5.51 billion in 2013, down 20.4 percent year on year from RON 6.93 billion in 2012.

EU FUNDS Courtesy of psd.ro

Austrian investors say EU funds are critical for infrastructure Rudolf Lukavsky, commercial counselor for Romania and Moldova at the Austrian Embassy, told BR that the greater absorption of EU funds would be “highly appreciated” by Austrian investors, as projects funded by EU money would generate more business opportunities. “It would be a pity if Romania were unable to make use of these funds and again faced substantial delays in the further development of its infrastructure,” said Lukavsky.

LOGISTICS Tibbett Logistics expands Bucharest operations with 2,000 sqm warehouse Supply chain logistics specialist Tibbett Logistics, part of the UK-based Keswick Enterprises group, has opened a 2,000 sqm warehouse for an automotive client in Bucharest. The move brings Tibbett’s total automotive operations in Bucharest to around 11,500 sqm. According to company representatives, the firm has almost quadrupled the scale of its automotive logistics operation in the Romanian capital in the last five years. Tibbett is a leading manufacturer of turbochargers and turbo technologies for commercial, passenger and private vehicles. In addition to managing the external warehouse, the company operates the factory warehouse inside its Bucharest plant.

All the president’s men: PM Ponta throws hat into ring A large-scale event took place at Bucharest’s National Arena to mark the announcement that Prime Minister Victor Ponta was joining the race for the presidential elections on November 2. The campaign is due to start at the beginning of October. The event launching Ponta’s candidacy opened with a concert by local artist Lidia Buble. Ponta told audiences that at 42, having become president of the Social Democracy Party PSD at 37 and prime minister at 39, he feels ready to become Romania’s president.

MARKETING Advertising market reverses ﬁve years of decline 2014 will be the first year of growth for the Romanian advertising market in five years, with a hike of 2.8 percent forecast, according to Zenith Romania. The growth is due mainly to digital ad expansion. By the end of the current year, total investments in advertising will have reached USD 394 million. TV remains the channel that will attract the bulk of advertising investment (64 percent), followed by digital (14 percent) and outdoor (10 percent). Advertising on mobile devices, including display, classified, search and in-app ads delivered on smartphones and tablets, is the segment with the fastest growth, due to the increasing penetration of smartphones as well as the introduction of new formats, which allow advertising clients to employ users creatively.

STOCK EXCHANGE Franklin Templeton secures two-year mandate extension for Property Fund Shareholders in the Property Fund, the EUR 3.4 billion closed-end fund, have approved a two-year extension of Franklin Templeton’s mandate as administrator. The fund is currently waiting for approval from the Financial Supervision Authority (FSA) for a secondary listing in London and a new share buy-back program on the Bucharest Stock Exchange, said Greg Konieczny, the fund’s manager, according to Reuters newswire. The FP has stakes in 56 companies, out of which 18 are listed and 38 unlisted. It has been pushing for the appointment of professional managers and boards at the state-owned companies in which it holds minority stakes, and calling

for the listing of these companies on the stock exchange.

TELECOM PC software piracy rate fell to 62 percent last year The PC software piracy rate in Romania dropped by one percentage point in 2013 against two years ago, from 63 percent in 2011 to 62 percent, due to efforts to combat the phenomenon, according to an IDC survey, quoted by Mediafax. “IDC believes the dynamism of the PC market in Romania – the growth in the number of PCs brought and installed by consumers – has led to a situation on the market in which, in the absence of enough antipiracy efforts, the nationwide piracy rate would have increased by 2-4 percent between 2011 and 2013,” stated the IDC, presented last week by the Business Software Alliance (BSA).

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4 NEWS ENERGY

UPCOMING EVENTS October 3 Presidential campaign begins From October 3, the 14 presidential candidates are free to broadcast their campaign TV spots and make other television appearances in support of their campaigns. Following a recent decision by the CNA, television stations will not be able to charge candidates for broadcasting their campaign spots or their appearances. October 8-9 Internet&Mobile World This annual event brings together major players in internet and mobile related businesses in Romania and the region. 09.00-18.00, Romexpo. October 14-16 Foreign Investors Summit The first edition of the Forum Investors Summit will take place in Bucharest, from 14-16 October. The summit includes six industry-targeted conferences, 12 workshops and dozens of expert speakers. For registration, contact events@business-review.ro. October 11 - 17 EU Code Week The second edition of EU Code Week will see millions of children, parents, teachers, entrepreneurs and policymakers come together in mass events and classrooms to learn programming and related skills. The idea is making coding more visible, demystify these skills, and bring motivated people together to learn. Go to http://codeweek.eu to learn more and find your nearest event

MOST READ www.business-review.eu 1 Journalist Robert Turcescu

causes public outcry by confessing he was an undercover army officer

2 Bloomberg: European aristoc-

racy looks to invest in Transylvania

3 Raiffeisen Evolution in negotiations for EUR 150 mln sale of Promenada Mall

4 14 candidates for Romania’s presidential elections

5 Siveco elects new president while Irina Socol remains in detention in tax evasion file

E.On Romania head cautious over gas price liberalization

rank Hajdinjak, CEO of E.On Romania, part of the German utility firm E.On, has warned the market that the price of domestic gas traded on the energy exchange OPCOM could spike if the country faces a gas crisis that coincides with peak consumption period and the continued liberalization of gas prices for industry. He suggested the government prolong the liberalization calendar for big industry, as it has done for households. “Nor do I think it is a good time for continued liberalization in January, which is in the middle of winter. Potentially in the middle of a gas crisis, I think there is too high a risk of an explosion in gas prices in general,” said Hajdinjak, who is also president of the Association of Energy Utility Companies (ACUE). The government decided last week to suspend the increase of domestic gas prices for households, with Parliament delaying the liberalization of gas prices for the same segment through to 2021. Gas price liberalization was included in a stand-by agreement with the International Monetary Fund (IMF) and the European Commission, the executive arm of the EU, signed in 2012. The liberalization of gas prices for industry should have been completed over the course of two years starting 2012, but was halted in June. The De-

Asked if Romania would be able to manage this winter potentially without any gas imports from Russia, he said he was “confident” that the situation would be managed, especially because consumption has fallen since 2009, when Russian oil major Gazprom cut gas supplies to Europe for around two weeks. “There might be some small problems coming up in peak periods – because the extraction from storage and the daily production of natural gas might not be enough for peak periods – but that can Frank Hajdinjak, CEO, E.ON Romania all be managed either by switching some of the consumers to other fuel sources partment of Energy said that Romania or by reducing (e.n. consumption) of had reached the same prices as other certain customers,” said the CEO. Romania’s total gas consumption in countries in the region, maintaining them at the level registered in April, 2013 stood at around 12.4 bcm, out of namely RON 89.4/MWh, which is rough- which the industry had a 75 percent ly EUR 190 for 1,000 cbm. Meanwhile, share and households the rest, according the liberalization of prices for households to energy regulator ANRE. Domestic gas should have been concluded, under the production amounted to 10.5 bcm, while imports reached 1.9 bcm Last year the initial calendar, at the end of 2018. “I think it was an absolutely great and price of imported gas hovered around correct decision by the Romanian gov- USD 400 for 1,000 bcm, with most of it ernment to first of all postpone the lib- coming from Gazprom, according to aneralization process and also not to in- alysts. The Department of Energy predicted crease the gas prices for the public because this is an issue of affordability the average weighted price for gas imand we all know that the burden for our ports would stay at around EUR 282 per customers and Romanian citizens is not 1,000 cbm for contracts covering the necessarily small – on the contrary,” September-December period. ∫ Ovidiu Posirca E.On’s CEO told BR.

TAX

Private sector fears increase in fiscal burden following cut in labor tax

ith social insurance contributions (CAS) payable by companies to be cut by five percentage points from October, investors are concerned that more taxes could be rolled out next year. Mihai Bogza, president of the Foreign Investors Council (FIC), said the cut in CAS would have a “marginal effect” in the last three months of the year. “In 2014, prior to the cut in CAS, we had an increase of taxes – several increases – such as the ‘pole’ tax and the hike in excises,” said Bogza last week, quoted by Mediafax newswire. He suggested that companies could decide to invest more and increase employment if the cut in CAS were maintained for longer, while other taxes remain unchanged. “We fear that next year the state will take with two hands what has been given to us in the last three months,” said Bogza, who added that there is a risk the government could decide to increase the tax burden to compensate

Mihai Bogza, FIC president

for lower revenues to the budget due to the cut in CAS. Scaling back the CAS will generate an estimated loss of EUR 191 million in budget revenues this year and another EUR 1 billion in 2015. Meanwhile, Florin Pogonaru, president of the Association of Romanian Businesspeople (AOAR), said that taxes would not go up because of the reduction

of CAS. “Until the CAS can generate budgetary imbalances, we have to look at the other factors that are actually creating these imbalances. We have to focus on collection, on reducing state waste,” said Pogonaru, quoted by business daily Ziarul Financiar. He added that this measure was necessary to stimulate the business environment. Coalitia pentru Dezvoltarea Romaniei (CDR), the association comprising the main business advocacy groups in Romania, said this summer it supported the five-percentage point reduction in social insurance contributions (CAS) as it would help the economy. The CDR said, however, that the increase of the tax take and a more efficient budget allocation should be pursued by authorities to make the measure sustainable. The additional funding generated by the cut in CAS could be used for new investments . ∫ Ovidiu Posirca

www.business-review.eu Business Review | September 29 - October 12, 2014

NEWS 5

TELECOM

Romania will get its own satellite, says communications minister R

omania will have its own satellite within a few years, a government minister has revealed. “This is a satellite that will provide all types of communications – special communications, communications of the Ministry of National Defense, communications specific to the Ministry of External Affairs and also the possibility to lease the communication line to any private entrepreneur,” said Razvan Cotovelea, minister for the information society, during the International Digital Forum that took place in Bucharest last week. The development plans for the project will be drafted next year, he announced. When asked how much it would cost, the minister said satellites can cost between EUR 70 million and several hundred million EUR, but at this point it is unclear how much Romania will pay for the one it will acquire. “A very simple business plan shows

Razvan Cotovelea, Romanian minister for information society

that the Romanian state will have very much to gain over a four-five year interval if it has its own satellite and is

able to provide satellite services,” said the minister. The Romanian Television Company

(SRTV) aims to set up a business department dedicated to developing the online division of the public television service. “We are trying to develop the new business area. We will forward a proposal to the administration board to set up a new business department, in which the online, video-on-demand and archive capitalization are a strategic direction. I believe we are sitting on a gold mine,” said Lucian Romascanu, management advisor to TVR president Stelian Tanase. “There is a video-on-demand project that is functional at the moment, tvrplus.ro, which we wish to rethink and create the possibility that this premium content can be accessed for money,” added Romascanu. The public television service is due to launch two new stations – an education and a weather channel – in line with the transition to digital terrestrial television. ∫ Otilia Haraga

MEDIA

Journalist Robert Turcescu causes public outcry by confessing undercover army officer past

1 TV journalist Robert Turcescu shocked the public on Sunday morning when he posted a confession on his blog that he had served as an undercover army officer.Later that day, Turcescu confirmed the admission live on B1 TV, during a 20minute speech. The text on the journalist’s blog read: “Yes, I was an undercover lieutenant-colonel. I am publishing below several of the payment records, with the sums of money I received. I chose not to betray God and make this public confession. I refuse to be Judas in front of Christ, even though today, those who read this text will not understand very clearly what is going on. Pray for me and with me to be forgiven and redeemed. I am ready to face the public outcry – I deserve it – but I hope we will have fair laws and judges. With God’s help everything will be fine. I ask forgiveness from you all.” The blog post was accompanied by a copy of a military ID with Turcescu’s picture and two payment records. The blog is no longer online, and the post does not appear on the journalist’s Facebook page. Turcescu, who anchored a B1 TV talk show called Sub semnul intrebarii

Robert Turcescu has withdrawn from the media for the time being

(Under Question) announced he would step down from the show and withdraw from the media at least temporarily, and that he was ready to face the legal consequences of his actions. Turcescu’s statements were met with public outcry, and a welter of heated debate sprang up after his TV appearance. His intervention was described as a “mystical delirium” by Gandul commentator Cristian Tudor-

Popescu, while other outlets such as journalist. Under the Criminal Code, revealing HotNews questioned the authenticity classified information is punishable with of the documents. Tudor-Popescu said, “There should up to seven years in prison. Turcescu’s statements, which come be a complaint from the service in question (ed. note: the service whose confi- as Romania readies itself for the presidentiality was compromised by Turces- dential election campaign period, has cu’s statements). Someone must declare shifted the public eye from the candithey are a damaged party in all this. It dates and has also sparked a debate on is a long process; I don’t think we will the credibility of the Romanian media. witness anything like this,” said Popescu. “I believe the position of officer underHowever, the Ministry of Public De- cover is incompatible with the journalfense (MApN) declined to comment on istic profession. (…) A journalist depends Turcescu’s case, posting an official re- on his credibility. If what he says is true, sponse on its website. “The Ministry Robert Turcescu has lost his credibility of Public Defense will not make any before the public,” said Cristina Guseth, statements regarding this subject. MApN executive director of Freedom House is applying the laws of the country and Romania, told Evenimentul Zilei. By coincidence, Turcescu also feabelieves that debates that can hurt the image of the Romanian Army are not tured in a trailer for the movie De Ce beneficial. If any irregularities are found, Eu? (Why Me?) directed by Tudor other state institutions have the au- Giurgiu, inspired by the case of Cristian thority to take a stand,” read the re- Panait, a prosecutor who allegedly killed himself in 2002. sponse. Giurgiu told Hotnews.ro that TurcesOn Wednesday, Turcescu appeared again on television, this time on RTV, cu was playing a version of himself, a but refused to say more and maintained journalist presenting a talk show. Howhis position. “I, Robert Turcescu, am in ever, at the time of the Panait incident, a position in which I wish to get a fair Turcescu was not yet a talk show host, trial. (…) The judge should decide; I am and the debate in the movie is fictional, not the one who decides at the moment according to Giurgiu. ∫ Otilia Haraga what I have done or not done,” said the

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6 FOCUS

Home, sweet home? Romanian graduates abroad weigh up options Approximately 5,000 Romanians complete studies abroad every year, with more than 85 percent of them studying in Europe, according to Unesco data. They then face the choice of whether to come home or not – and those that do, while armed with valuable skills, must grapple with the realities on the local market. ∫ OTILIA HARAGA “Recently, companies in Romania have started to feel acutely the lack of young people with potential, who fit the vacancies at their organizations. While two-three years ago, most complained that young people who undertook international studies come back with exaggerated expectations, over the past year the perception has changed a lot,” Adriana Comaneci, managing partner at Reviro, tells BR. Candidates with international experience have certain skills that are in high demand, such as openness to a new environment and international culture, critical thinking, the ability to adjust to new situations and flexibility, she explains. At the moment, there are no reliable data on how many young people have actually returned to Romania after completing studies abroad, but the Reviro experience of the past year shows that approximately 60 percent grapple with the decision, Comaneci says, quoting the Unesco data. “This is because many of them leave right after finishing high school or the first years of college, and they are not anchored in the business reality and the labor market in Romania, so the career opportunities they have in the country are not clear,” she adds. Dragos Gheban, managing partner at Catalyst Solutions, tells BR, “We advise those who come back to the country and are looking for a job to first of all familiarize themselves with the current situation on the labor market in Romania.” A survey carried out this year by the League of Romanian Students Abroad (LSRS), called Studying Abroad and Coming Back Home, revealed that the number of young people who want to remain abroad after finishing their studies has increased substantially. The political climate in Romania seems to weigh heavily against coming back to Romania, along with high-level corruption, the non-representative political class, petty corruption and modest salaries. Youngsters choose to study abroad mainly for the courses available at international institutions. This supersedes other aspects such as the prestige of foreign universities, getting to know other cultures or the prospect of learning a foreign language.

Should I stay or should I go? Romanian graduates must decide their future

Most are drawn to study abroad for reasons that have to do with the technical equipment, university environment, quality of the teaching staff, cultural environment and the quality of the classes. The fact that they can put into practice what they have learnt, flexible timetables, the social life, professional opportunities open to them after graduation and the system of evaluating knowledge also count a great deal. Approximately 39 percent of the young people questioned for the survey in 2014 said they did not wish to return to Romania after finishing their studies or in the near future, while 32 percent were undecided. The main thing that puts them off is the government and politics, which deterred 74 percent of respondents. Other serious challenges that Romania is faced with are high-level corruption, cited by 73 percent of respondents, the non-representative political class (66 percent), petty corruption (54 percent) and low salaries (54 percent).

Coming back to Romania is still a viable option but it is becoming less and less attractive. Only 29 percent of respondents said they wanted to return home after the end of their studies or in the near future, according to the survey. “In most cases, the reasons for returning are personal: idealism, patriotism, family. And then, from a strictly professional perspective, there are greater chances of moving up the ladder in Romania, even though salaries are much lower than elsewhere, at least in the beginning,” executive search consultant George Butunoiu tells BR. Gheban adds that from the point of view of the number and diversity of jobs, cities like Bucharest, Timisoara, Iasi and Cluj-Napoca are attractive, because 90 percent of the multinational companies in Romania are based here. Other cities such as Brasov, Sibiu, Ploiesti and Craiova should not be overlooked either, he says, because they have well-developed infrastructure and positive growth opportunities.

Salary expectations are moderate, according to the LSRS survey. Most of the respondents- 54 percent- who came back accepted starting salaries between EUR 400 and EUR 1,000. Another 12 percent were paid EUR 1,500 salary. “I don’t think anyone is overqualified after studying abroad, no matter what the job. The high demands are the main problem. I know of many companies that do not wish to meet such candidates in order to avoid useless headaches. Indeed, they are highly frustrated, and the related professional risks, for the employer, and not only, are just as high,” says Butunoiu. This view is confirmed by a survey carried out by the Pro Diaspora Institute in Romania in March, which found that companies are reluctant to hire young people who have graduated abroad, because they fear very high financial demands. And young graduates who want to work in state structures, especially faculties or research institutes, must face the corruption and reticence of those who make the decisions, says the survey. “Employers fear two things when recruiting people who have studied abroad: the candidates’ high expectations regarding their responsibilities, and their maladjustment to the current situation in Romania, which means they might decide to return to the country they studied in,” says Gheban. For those who do decide to come back, there are various options open. “They can start a career in a multinational company – and there are enough trainee management or junior jobs that give them the opportunity of fast personal and professional growth. They can pursue a career in the NGO field which has grown in recent years in Romania and still has a lot of room on the market. We also encourage them to become entrepreneurs, even though this is one of the most difficult and challenging options,” says Comaneci. The most frequent needs youngsters have upon returning to Romania are related to access to the labor market. Respondents to the LSRS survey cited the complete recognition of diplomas (in 67 percent of cases), special internships, fellowship & traineeship programs (62 percent), online recruitment procedures (40 percent) and career fairs (33 percent). otilia.haraga@business-review.ro

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INTERVIEW 7

DPIIS casts a wide net for investors

Alexandru Nastase, state secretary at the Department for Infrastructure Projects, Foreign Investments, Public Private Partnership (PPP) and Export Promotion (DPIIS), says foreign direct investments (FDI) to Romania are expected to reach at least last year’s level of EUR 2.7 billion in 2014. Nastase suggested that the five percentage point reduction in social insurance contributions will further increase the attractiveness of the market, although foreign investors active here fear that this could lead to higher taxes next year. ∫ OVIDIU POSIRCA

CV Alexandru Nastase

Top three national sources of FDI in Romania* (EUR bln)

13.2 Netherlands 10.9 Austria 6.5 Germany *data from the end of 2012

Source: National Bank of Romania

Photo: Mihai Constantineanu

How has the department’s strategy been affected by the fact that the new PPP law has not yet been approved? The Constitutional Court declared that we have an article that is unconstitutional regarding the clarity of the law. We did not agree with that decision, but we will try to redesign the small article in order for the bill to pass through the Parliament approval chain. PPPs have to work for all countries and the most important thing is that they have to work for Romania, because at local level, in the countryside, there is significant need for the local authorities to welcome investors that can make investments that they can’t make from their own money locally. In order to attract further foreign investments we will try to put on a road show in various countries to promote the fields of activity where [businesspeople] can invest, promote the attractiveness of the country, show potential investors that Romania is able to welcome them and explain the advantages that Romania can provide over other states in the region. When do you think the new PPP law will ﬁnally be approved? The Parliamentary session has just started so we will rephrase the article that the Constitutional Court has rejected and we hope the law will be ready within a month. That depends on the legislative process. From where do the investors looking to step into Romania come? They are largely from the US, China and the Middle East. Most of those from Europe are big companies in the energy, transport, infrastructure, environment and automotive sectors. From the Middle East we have mainly investment funds interested in buying or making direct investment in Romania. The Americans are from the service sector, consultancy and human resources. The Chinese are well known for being interested in infrastructure and the energy sector. They have the capacity, ability and funds to create and construct here. We just have to let them, or to clarify with them the legal framework for entering Romania, because as Romania

is an EU member state they must apply EU regulation when they pitch a project here. Prime Minister Victor Ponta went on a three-day tour to China earlier this month and signed some new memorandums, agreements for new investments in the country. We also had the CEE-China forum last year in November. Why haven’t there been any announcements regarding the start of investments since then? Because the memorandum of understanding and the protocols we signed with the Chinese say that we intend to collaborate with them in order to create new jobs and investments in Romania. We just have to find the legal way of doing business with China, keeping in mind that they are not an EU member state and yet have to comply with EU regulation when bidding for or pursuing a contract in Romania. Of course, we are keen to welcome Chinese companies and we will try to find a way to create PPPs if possible or to facilitate this for the Chinese and for all companies. We have a memorandum of understanding with China Development Bank. They are coming here with private investors, offering financial consultation and financing for projects to be implemented in Romania. FDI to Romania contracted by 10.3 per-

March 2014-present – state secretary at the DPIIS November 2013-March 2014 – state counselor to Prime Minister Victor Ponta April 2013-November 2013 – state secretary at the Department for Infrastructure Projects and Foreign Investment 1995-2003,2005-2013 general manager of a communication and advertising firm cent to close to EUR 1.2 billion in the ﬁrst half compared to same period of last year. Why did this happen and what is your estimate regarding the level of FDI by the end of the year? I believe that we should attract at least EUR 2.7 billion, like we did last year. This is a difficult year because in Romania we are affected by the Ukraine crisis, which impacts all the states in the region. The international business community’s perception of investing in a country very close to Ukraine is a bit difficult to quantify. Even if we make every effort to attract foreign investments, we are affected by what is happening in the region and the geopolitics here. How do foreign investors perceive the legal and ﬁscal framework in Romania? What an investor wants is predictability, stability and transparency. That is why we maintained the flat tax rate and have come up with a new PPP law. A new tax exemption for reinvested profit has recently entered into force and we are planning to reduce social insurance contributions by five percentage points for the employer. Of course there is still room for improvement and the enhancement of operational conditions but they will come when the state budget allows it. Romania has an amended Labor Code for increased flexibility, as requested by private sector representatives, and of course on the long term, as the labor market evolves, changes will be made to further ensure an investment-friendly environment. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | September 29 - October 12, 2014

Pharma industry calls for higher drugs budget With around 136 new medicines awaiting approval for the reimbursed drugs list and a claw back tax that exceeds 20 percent of drugs makers’ sales, the government should move to increase the budget next year and look at other mechanisms that could keep pharma expenditure under control, aside from the claw back, said industry representatives during the third Focus on Pharma event, organized by Business Review last week. ∫ OVIDIU POSIRCA The claw back tax was adopted five years ago and is on its fourth version, but players in the market are angry because they are essentially covering the real consumption of medicines, while the initial goal of the contribution was to rein in consumption.

Claw back covers gap in public funding

All photos: Mihai Constantineanu

Dan Zaharescu, executive director of the Romanian Association of International Medicine Manufacturers (ARPIM), commented that the real consumption of patients is currently 20 percent above the allotted budget. “The collection rate of the claw back exceeds 90 percent at the moment – it is the tax with the highest collection rate in Romania,” said the ARPIM executive. The executive added that authorities have used the claw back to control the evolution of the pharma market in the last two-three years, with growth limited at 2-4 percent annually. Zaharescu also pointed out that the steady revenues collected by the state as claw back are not incentivizing the fight against fraud in the health system. “The state is not interested in getting and keeping fraud under control because it has someone to pay for it. The claw back mechanism practically eliminates any state intention to control fraud,” said Zaharescu. According to Anca Grigorescu, coordinating lawyer and founding partner at law firm bpv – Grigorescu Stefanica, the main challenges of the claw back stem from its regulation and the computation mechanism. Producers of both innovative and generic drugs (products with expired patents) have to pay tax of over 20 percent of their turnover. The sum includes the mark-up of pharmacies and distributors. VAT was also included in the total payable amount, but in 2011 the Constitutional Court ruled that provision unconstitutional.

Cash injection: speakers outline the main challenges of the current claw back contribution Producers of generics complain that the current claw back tax is discriminatory, because they have lower regulated revenues, but the tax is the same as for producers of innovative drugs. Laurentiu Mihai, executive director of the Generic Drug Manufacturers Association in Romania (ARPIM), said the quarterly payment of contributions by producers of generics has become a “life or death issue”. It has also seen cheaper drugs starting to be taken off the market in recent years. Some 1,332 drugs have disappeared from the local market since 2011, including 500 in the last 14 months. Almost 900 of them cost less than RON 50 and half are manufactured in Romania, said Mihai, citing a report by Cegedim Romania, a data provider for the pharmaceuticals sector. Medicines under a certain value (RON 25) are produced at a loss due to the claw back, according to another Cegedim study cited by the APMGR head. “I am afraid that although the tax was introduced as a temporary meas-

ure, it will stay around for longer,” said Mihai. A draft bill is currently going through Parliament, which aims to amend the claw back by introducing a differentiated computation mechanism for the innovative and generics industries. According to Mihai, the bill requires a final vote in the Chamber of Deputies and would see generic drugs makers pay a claw back at 65 percent of the 20 percent levied on sales. This would reflect another legal provision, which forces generics producers to price their medicines at a maximum of 65 percent of the innovative alternative. If the current budget for drugs is maintained, Zaharescu of ARPIM estimated that generics producers would end up paying a claw back of 15 percent, while producers of innovative drugs would pay 22-24 percent, if the amendments for the differentiated tax get approved. Zaharescu said there was also an issue with the quality of data collected by the authorities to establish

the consumption of drugs, commenting that some producers have challenged these figures in court.

How to replace the claw back? Cristian Busoi, an MEP that sits on the

“I am afraid that although the tax was introduced as a temporary measure, it will stay around for longer,” Laurentiu Mihai, executive director of the Generic Drug Manufacturers Association in Romania (ARPIM)

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9 3

1. Laurentiu Mihai, executive director, APMGR 2. Cristian Busoi, Member of the European Parliament 3. Anca Grigorescu, founding partner and coordinating lawyer, bpv – Grigorescu Stefanica 4. Dan Zaharescu, executive director, ARPIM Committee for Environment, Public Health and Food Safety, suggested that cost-volume agreements should replace the claw back in the next two years. “Price-volume agreements don’t have to be invented by us, because they already exist in many EU member states, which we can adapt to Romanian realities. Once agreed by most players they should replace the claw back mechanism, maybe at the start of 2016,” said Busoi. However, Grigorescu of bpv – Grigorescu Stefanica pointed out that Romania does not yet have the legal framework that would allow the closing of such agreements.

Zaharescu of ARPIM added that price-volume agreements will not bring more money into the system on their own, urging the authorities to increase the budget for pharma spending. He said that the current regulation bars the National Healthcare Insurance House (CNAS) from getting involved in negotiations over price-volume agreements. The discussions regarding pricevolume agreements come against the backdrop of the government’s intention to update the list of reimbursed drugs by the end of this year. Zaharescu of ARPIM said that out of 132-136 medicines pending ap-

proval for inclusion on the reimbursed drugs list, there are 20-30 drugs that could get on the list through price-volume agreements. However, he stressed that these agreements will require at least three months of negotiations, adding that they could probably get on the list from the second quarter of 2015 at the earliest. “Medicines are underfunded – we are the only country in the EU that has not had the list of reimbursed drugs updated since 2008,” said Busoi, who also had a stint as head of the CNAS, resigning in February. He said that during his tenure at the body, officials were concerned

about the financial sustainability of the list update. “In the Romanian healthcare system, if we had another half of the current budget it would work at decent parameters,” said Busoi. The government let 17 new orphan drugs onto the list this summer and funded the move from the public coffers. At the moment there is no clear decision regarding the mechanism that will finance the update of the list. Players are calling for a balanced approach that would see both producers and the state finance the move. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | September 29 - October 12, 2014

10 WHOS

CEO CORNER

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

Jean Istasse CEO, Sodexo

Ana Maria Bajan

The impact of clear direction and feedback on employee motivation As Ken Blanchard used to say, “feedback is the breakfast of champions”. If offered in the right way and proper environment, feedback has a major impact on companies’ performance. In a high-performing organization, a CEO should give formal and informal feedback regularly and instill this practice among the other managers. I would like to share with you a bit more insight into it. Boosting employee motivation has been a research subject for psychologists and anthropologists for years. But leaving aside the well-known theories about motivation (which are very important), I want to focus on a special ingredient in leveraging employee motivation: clear direction and feedback. Progress is not possible without the constant improvement of skills and knowledge, and that’s why managers have a difﬁcult role – to guide employees towards progress. And this can be done only through clear goals and feedback. The way feedback is given by managers and received by employees has of course a strong cultural inﬂuence. Some cultures are more oriented towards accepting feedback as a normal step in the development process, while others are more reticent, perceiving it as criticism. The key to successful feedback is creating a fair reference for it that would lead to a trustworthy environment so that feedback becomes a normal activity in any team. Combining clear goals with feedback helps employees to evaluate their performance and continue to learn. It is a main driver for their engagement and motivation, impacting positively on their performance. The results of research by Corporate Leadership Council (CLC) (Managing for High Performance and Retention, 2005), based on an extensive analysis of data gathered from more than 90,000 employees in 135 organizations from around the world, showed that fair and accurate feedback can boost employee engagement by up to 40 percent and discretionary effort up to 23.3 percent.

WHO’S NEWS has been appointed marketing, business development & PR executive director at Caroli Goods Group. Bajan is a graduate of the International Economic Relations Faculty, within the Academy of Economic Studies, and holds a marketing MA from the same institution. She has over 14 years of experience in marketing and communication, mostly in the FMCG sector. Before joining Caroli, Bajan held several positions at Unilever South Central Europe.

Aurelia Costache

Also, managerial feedback that recognizes and rewards the achievement of employees increases individual performance by up to 4.4 percent. The most challenging feedback is that given on poor performance: how to deliver it in order to create positive results. The CLC research evidenced the danger of negative performance feedback. The emphasis on weakness in the employee performance – in the absence of specific, targeted feedback for improvement – will diminish employee engagement and effort, reducing performance by up to 26.8 percent. One of the most efficient approaches is to focus on solutions: feedback should be used to identify solutions and discussions conceived to lead to an action that can be followed up on. The research showed that managers providing feedback intended to find solutions to employees’ problems can increase the individual’s performance by up to 23.7 percent. Offering and receiving feedback needs to start from very specific behaviors, with no judgments and starting from the premises that each employee is unique. Great managers know how to capitalize on the strengths of their employees and use feedback to challenge each of them to excel in his or her activity.

has joined EY Romania as ﬁnancial services industry leader in the consultancy department. She has been working as a consultant in the banking and telecom sectors for more than 16 years. Costache previously led and developed the information risk management, IT advisory and performance & technology departments of another Big Four player. She holds an EMBA from the Ecole Nationale des Ponts et Chaussees in Paris and a postgraduate diploma in international business from the University of Edinburgh.

Sonia Nastase

has stepped down as GM of Howard Johnson Grand Plaza Bucharest to continue her career in a HoReCa related business, more details about which will be made public over the coming period. She will be replaced by Daniel Ben-Yehuda, the GM of Ramada Plaza Bucharest & Ramada Bucharest Parc. Nastase took over as GM of Howard Johnson Grand Plaza Bucharest in 2009. Her professional background in the hospitality industry goes back over 15 years, both in the operational area and in consultancy.

Razvan Szilagyi

will be the new general director of Raiffeisen Asset Management (RAM) from January. He is replacing Mihail Ion, who will remain board president. Szilagyi is currently director of sales in the treasury division at Raiffeisen Bank. He has spent the last 11 years working for the lender, outside of which he is also a member of CFA Romania, since obtaining authorization in 2006.

ANNOUNCEMENT Recruitment and selection of the non-executive administrators for Compania Națională a Uraniului S.A. and Societatea Electrocentrale Grup S.A., economic operators under the authority of the Ministry of Economy through the Department of Energy. The Ministry of Economy through the Department of Energy selected the association formed between the companies “Boyden Global Executive Search” and „Choice Management & Consulting SRL”, for specialty services of assistance in recruitment and selection of the non-executive administrators for Compania Națională a Uraniului S.A. and Societatea Electrocentrale Grup S.A., companies under the authority of the ministry of Economy through the Department of Energy. Interested candidates are invited to access the details regarding the conditions required to apply, selection criteria and the participation in the selection process on the sites of the companies www.cnu.ro and www.electrocentralegrup.ro, on the site of the Department of Energy, www.energie.gov.ro or on the site www.boyden.com. The files containing the required documents by the candidate will be submitted / sent with confirmation of receiving at the Ministry of Economy – Department for Energy, Direcţia Generală Privatizare şi Administrare a Participaţiilor Statului în Energie, Bucureşti, Splaiul Independenţei nr. 202 E, sector 6, camera 109, cod poştal 060023, România, as well as in electronic format at the email address deptenergie@ boyden.com, until latest 29.10.2014 , at 16:00.

www.business-review.eu Business Review | September 29 - October 12, 2014

PROPERTY 11

Demand for logistics and industrial space to pick up The manufacturing industry and retailers are driving up demand for logistics and industrial space both in Bucharest and outside, real estate pundits told BR. And for the ﬁrst time in several years, speculative development could resume. ∫ SIMONA BAZAVAN Total leasing activity involving modern industrial and logistics space reached 89,000 sqm in the first six months of 2014, while take-up amounted to 61,000 sqm, according to a DTZ Echinox report. Some 46 percent of this was in Bucharest. “The take-up of logistics and industrial space increased considerably in the first half of this year compared to the same period a year ago – from 20,000 sqm to 34,000 sqm. At a regional level, the take-up was similar to a year ago, but we anticipate a dynamic evolution over the coming period,” Rodica Tarcavu, head of the industrial department at DTZ Echinox, told BR. CBRE data put the total leasing activity involving logistics and industrial space at over 230,000 sqm in the first semester, up by 46 percent y-o-y. Renegotiations represent about half of this. “What’s worth mentioning is that relocations and extensions reported an increase in surface area of close to 50 percent this year against the previous one,” Dana Bordei, head of the industrial business development at CBRE, told BR. The overall vacancy rate stood at 8 percent in the first semester, with a higher proportion in the capital – 10 percent. Outside Bucharest this fell to 6 percent and went as low as zero in Cluj-Napoca, Brasov, Pitesti and Oradea, according to DTZ data. Looking at predictions for the remainder of this year, there are the premises for leasing activity to top last year’s level, as demand from both logistics operators and manufacturers is on the rise, pundits told BR. “By the end of the year we expect several important transactions to be closed in Bucharest and outside the capital,” said Tarcavu. In turn, this should also lower the vacancy rate. “In 2014 we expect total leasing activity to go up slightly compared to 2013 because of the manufacturing industry. The vacancy rate should drop slightly – in Bucharest we see it at around 12-13 percent,” Cristina Pop, head of the industrial agency at JLL Romania, told BR. In the capital in particular, logistics operators are expanding their surfaces as a result of increased business, including from growing online sales,

BRIEFS NEPI could buy Promenada mall New Europe Property Investments (NEPI) has started a due diligence process for the acquisition of Raiffeisen Evolution’s Promenada mall in Bucharest, according to Mediafax. The 35,000-sqm Promenada shopping mall in northern Bucharest opened last October following an investment of over EUR 130 million. Raiffeisen Evolution had said from the beginning that plans to sell the project were in place. NEPI’s commercial portfolio comprises approximately 330,000 sqm (GLA).

Immoﬁnanz reports declining local revenues

Deep space: manufacturing and retail are driving demand for warehousing

added Bordei. The expansion of retailers, hypermarkets especially, is driving up demand outside Bucharest, while in the industrial sector, the automotive industry is the main growth engine, she went on. Rents have remained stable over the first semester, with prime headline rents for modern logistics warehouses ranging from EUR 3.6-3.9 /sqm/ month, but the net effective rental level is down by 10-20 percent, according to the DTZ report. Headline rents are expected to stagnate through to yearend and there will continue to be flexibility from owners as regards the duration and incentive packages, predicted Pop. Romania’s total stock of modern industrial and logistics space amounted to1.8 million sqm at the end of H1 2014. More than half of this – 53 percent, or about 930,000 sqm – is located in Bucharest. Outside the capital, the largest cities in terms of modern warehousing are Ploiesti, Timisoara, Brasov, Pitesti, Arad and Cluj-Napoca.

Speculative ahead?

development

The market is more dynamic and the fact that it is being stimulated by new companies active in manufacturing offers new perspectives to warehouse and logistics space developers, thinks Tarcavu. “Given that over the past four years the main growth engine for this sector has been ‘built-to-suit’

spaces, we predict that from 2015 developers will reconsider the option of speculative developments, both in Bucharest and in the main cities,” she added. There are signals the market could see the start of works on speculative projects in Bucharest and the other main cities, Timisoara in particular, confirmed Bordei. “For now these projects are in a development phase, not construction, but the situation could change rapidly,” she outlined. “Yes, there are positive signs about future developments as there are developers that are active on the CEE market but not in Romania. The main interest areas are hubs such as Bucharest, Timisoara, Arad, Ploiesti, Cluj-Napoca and Brasov,” said Pop. The latest news about new logistics and industrial developments concerns Swiss Artemis Holding, whose local branch, Artemis Real Estate, has announced that it will develop five logistics and residential projects near Timisoara, on a 128 ha plot of land. Out of this surface, 40 hectares have been allocated to the development of logistics and industrial parks. EUR 15 million has been invested so far in the land and infrastructure works. The developer is now looking to sell or lease the plots of land for periods of about 15 years, but it is not ruling out the possibility of starting developments of its own. simona.bazavan@business-review.ro

Austrian real estate company Immofinanz has reported revenues of EUR 11.6 million for the period May 1-July 31 (Q1 of the fiscal year) in Romania, down from EUR 12.6 million during the same period of 2013, according to a company report. Immofinanz, which owns 16 office, retail and logistics properties in Romania, saw rent revenues decline in Q1 mainly because the occupancy rate for its 206,411 sqm (GLA) of office space dropped to 76.7 percent from about 90 percent a year ago.

Telekom Romania to sell real estate assets A real estate portfolio consisting of three assets – Palatul Telefoanelor, the Tandem building and a land plot in Matei Millo – have been put up for sale by telecom operator Telekom Romania Communications, with a starting price of EUR 21.6 million. Those interested in participating in the auction must present a letter of guarantee and submit their offers by October.

Colliers: real estate market up 60 pct y-o-y Real estate investments could reach EUR 500 million by yearend, up 60 percent against 2013, with two large transactions about to be completed, said Ilinca Paun, MD of Colliers International, last week, according to Mediafax. Should this figure be reached, it would mark the highest level in the past six years. By comparison, last year investors brought properties worth EUR 300 million.

Imobiliare.ro launches online automated valuation tool Real estate platform Imobiliare.ro has launched an automated valuation model (AVM), the first of its kind available in Romania, and two other valuation services, following an investment of approximately RON 1.1 million (about EUR 240,000) out of which some RON 800,000 consisted of EU funds. The three online tools, which went live in June, target real estate agents, valuators and banks and are intended to provide support in property evaluation.

www.business-review.eu Business Review | September 29 - October 12, 2014

12 FUNDRAISING

Hope rises: EUR 5.7 mln palliative care center opens in Bucharest Over 5,000 people die of cancer every year in Bucharest, but only 9 percent of the capital’s sufferers have access to free palliative care, according to Hospice Casa Sperantei. But patients can now take heart from the opening of a new palliative care center in Bucharest. ∫ OANA VASILIU

PROFILE Graham Perolls Founder & executive director of Hospice of Hope

Courtesy of Hospice of Hope

After a EUR 5.7 million investment, Hospice Casa Sperantei has opened a new palliative care center, in Bucharest’s District 2. In 2009, the UK’s Duchess of Norfolk made the first call for donations for the center, a plea echoed by Princess Marina Sturdza and HIRH Dominic von Habsburg, among other donors, patrons, sponsors and founder members. “We have been able to achieve more than we even dreamed was possible, to raise EUR 5.7 million during a worldwide recession that hit Romania just as we began our fundraising campaign. Tonight marks a victory for this country’s civil society and represents a landmark in the country’s progress. And, make no mistake, civil society is alive and well in Romania,” said Sturdza in a speech to mark the launch of the center. “Today is a day of great celebration, and I think it is a miracle that we are here. I can imagine how much work was put in and how many obstacles were surpassed to open this center, and I want to congratulate everyone because it was teamwork. I believe that this hospice will become increasingly strong and I can also imagine how many people it will help over the years,” said the Duchess of Norfolk, patron of Hospice Casa Sperantei for 20 years now, in her opening speech. According to a Hospice Casa Sperantei report, over 5,000 people die of cancer every year in Bucharest, with only 9 percent of cancer sufferers having access to free palliative care in the capital. The report found that more than 15,000 patients need this service annually in Bucharest and the surrounding areas. “It’s true that there is a great tradition that certainly started with my grandmother, Queen Maria, who was a nurse and went to the frontline to take care of soldiers from both sides of the line. She also founded several hospitals in Romania. (…) Ileana, my mother, opened her doors to Romanian soldiers when she was living in Austria, turning her house into a hospital. She knew it wasn’t enough, so she returned to Romania and built another hospital in

Graham Perolls, founder and executive director Hospice Casa Sperantei, the UK’s Dutchess of Norfolk and HIRH Dominic von Habsburg l Englishman Graham Perolls came to

Bran. (…) For me, the great meaning of this hospice is a continuation of what these two great women have done before,” added von Habsburg. The new center, which has three floors and covers 3,421 sqm, is the first and only palliative care center with integrated services in Bucharest, providing free support to terminally ill children and adults. Patients have access to homecare services, ambulatory care, hospital admissions, social services and psycho-emotional counseling. The facility also has a multilingual teaching center for physicians and nurses, with courses to start in October. Subscriptions started two years in advance. Hospice Casa Sperantei will serve as a training center for over 12,000 hospice staff from Serbia, Albania, Macedonia, Bulgaria, Moldova and also Asian states such as Kyrgyzstan. It has partnered with the Ministry of Health to develop a national program for palliative care in Romania. “Bucharest can rightly be proud of what has been accomplished. This building is a model for Eastern Europe and will also provide a teaching center that spreads its wings and knowledge to the entire country and beyond, forming the physicians and nurses and hospice advocates to whom we will entrust the future care of

our parents, our friends and children, and perhaps, whose services we ourselves may need,” added Sturdza.

Another EUR 390,000 needed The Bucharest center can accommodate 2,000 patients a year, while the Hospice Casa Sperantei team can perform 11,000 homecare visits and over 8,000 ambulatory consultations. Moreover, 5,000 visits can take place in the center, where patients can take part in recreational activities. To fund all this, the Bucharest center needs EUR 390,000 to function fully for a period of nine months. “And now, we have another miracle to perform, and we surely will! We must raise another EUR 400,000 to complete the equipment and fund the first nine months of the new hospice. Together we will make that next miracle happen. It cannot come soon enough for those hundreds of terminally ill children and adults waiting for our help,” commented Sturdza in her speech. The center includes two units, one for adults and another for children, with 23 beds that can accommodate 700 admissions in one year. oana.vasiliu@business-review.ro

Romania as a tourist in 1975 and returned several times throughout the seventies. In 1989, after some family problems, he revisited the country and was horrified by the poor conditions. A few months later, he pioneered hospice care in Romania, which was then nonexistent. In 1992, the Brasov Hospice Casa Sperantei was opened. Dr. Constantin Voincu became the first medical director, and was soon joined by Sylvia Jarrett, a homecare sister from the Elleanor Foundation, who started training the first Romanian nurse, Gabi Baila. In 1996, a pediatrician and children’s nurse joined the team, which meant that families with terminally ill children had some form of support for the first time. Since then, the center has continuously grown, training over 12,000 doctors and nurses in all aspects of hospice care and providing care for thousands of children and adults who needed support to fight their diseases. l In 2013, in her New Year’s Honours List, the UK’s Queen Elisabeth awarded Perolls the Order of the Companion of St Michael and St George for his services to hospice and palliative care in Eastern Europe. The order is given to people who do extraordinary or important non-military service in a foreign country, which Perolls has been doing in Romania for the last 22 years.

www.business-review.eu Business Review | September 29 - October 12, 2014

CITY 13

Homo Europaeus and the European project Can one draw a profile of the 21st century citizen living in the geographical area of Europe, a so-called Homo Europaeus of today?

Courtesy of French Institute

Julia Kristeva explored the kaleidoscopic identity of Homo Europaeus

∫ ANCA IONITA

CV Julia Kristeva

This is the question Julia Kristeva, an internationally renowned philosopher, sociologist, psychoanalyst and literary critic, tried to answer during Bulgarian-French Julia Kristeva is a the conference La culture dans le pro- philosopher, literary critic, psychoanajet europeene (Culture’s role within lyst, sociologist, feminist, and novelist. the European project) she held last She has lived in France since the midweek at the French Cultural Institute 1960s. She is currently a Professor at in Bucharest. the University Paris Diderot. Kristeva Starting with a simple observation became influential with her first book, – the multilingualism of Europeans, a Semeiotikè, published in 1969. She has trait that in her opinion differentiates written extensively on intertextuality, them from North American or Chi- the semiotic and abjection, in the fields nese citizens – Kristeva tried to capof linguistics, literary theory and crititure the kaleidoscopic identity of cism, psychoanalysis, biography and Homo Europaeus, who can no longer autobiography, political and cultural be identified with the 20th century analysis, art and art history. She is rebourgeoisie, nor with the last cengarded as one of the major structuraltury’s anarchist. ists, alongside names such as Roland The ability to speak several lanBarthes, Tzvetan Todorov, Lucien Goldguages brings with it the ability to mann, Gérard Genette, Claude Lévithink in those languages. This could be, among other things, a trigger for Strauss, Jacques Lacan, Algirdas the rediscovery and re-evaluation of Julien Greimas and Louis Althusser. the richness of each national language, and a starting point for the birth of the new European ‘us’. including self-interrogation. “The What actually is the new European human voice of reflection is infinite,” identity that is currently in the mak- says the philosopher. ing, asks Kristeva? The paradox is that Kristeva’s future Europe is a space European culture is based on a cult of of national cultural diversity, where identity, the identity dogma that has “the banality of thinking” (to paraonly brought troubles so far. “We phrase Hannah Arendt’s concept of have to live our identity as an open the banality of evil) is undermined by question,” she says. Identity should the constant apolitical interrogation be a matter of constant debate, of on- of identity and the valorization of nagoing questioning, not a ‘cult’. Homo tional cultures. Europaeus is very much like a researcher, constantly asking questions, anca.ionita@business-review.ro

www.business-review.eu Business Review | September 29 - October 12, 2014

14 CITY

DON’T MISS OCTOBER EVENTS ROUNDUP from RON 150 to RON 500 (the latter for VIP entrance).

Dracula Film: Horror and Fantasy Festival Brasov, October 2-5 Now on its second run, six international feature films, eight international shorts and seven Romanian shorts will go head to head at the festival. Gary Shore’s first feature movie, Dracula Untold, which opens in Romania on October 3, will be screened at the grand opening. Anim’est Studio Cinema, Elvira Popescu Cinema and Atelierul de Producţie, October 3-12 A record number of films were submitted for this ninth edition of the festival – over 1,260 short and feature-length movies – of which 400 productions from over 60 countries will come to Bucharest. This year’s special guest country is Denmark, the home of one of the most prestigious animation schools in the world, The Animation Workshop. The JacquesRémy Girerd Retrospective and Animash selection will also be highlights. Those keen to learn more about the genre can attend Re:Animating Bucharest, a concept that has grown along with the festival’s educational platform, designed to reinvigorate elements of urban culture through animation. Vaya Con Dios Sala Palatului, October 5 After three sold-out shows in Bucharest, in 2009, 2010 and 2013, Dani Klein and her band are returning to Romania for their Farewell Tour, extended last year due to public demand. Following a 28year career, Vaya Con Dios is currently Belgium’s most popular band. Tickets cost RON 135, 170, 230, 300 and 400 (VIP). Astra Film Festival Sibiu, October 6-12 Some 120 films from 40 countries will be screened during the 20th run of this documentary festival. There are four competition sections: international, featuring works from Frederick Wiseman, Michel Gondry and Corneliu Porumboiu; Central and Eastern Europe, tackling subjects that define the region’s identity and portray realities unknown even to neighbor-

Lara Fabian Sala Palatului, October 20 With hits including Tu t’en vas, Si tu m’aime and Deux ils, deux elles, Lara Fabian has sold over 20 million records and is the best-selling Belgian-born female artist of all time. This will be her second time on a Bucharest stage.

Blunt force: British singer James Blunt returns to Romania for a show in Cluj

ing countries; student, featuring productions by young directors from the great university centers of Geneva, Manchester, London, Munich, Budapest, Bucharest and San Antonio de los Baños (Cuba); and Romania, showcasing local films. Miles Davis Kind of Blue Radio Hall, October 9 Ranking alongside Louis Armstrong, Duke Ellington, Charlie Parker and John Coltrane, Miles Davis was one of the most famous names of the jazz world. Kind of Blue won acclaim not only as Davis’s best-selling album, but as the best-selling jazz record of all time. Some 55 years since its release, six musicians bring the late singer back on stage: trumpeter Ryan Carniaux, saxophonist Plume, contrabass Chris Dahlgren, drummer Drori Mondlak, pianist Mircea Tiberian and saxophonist Nicolas Simion. Tickets for the Jazz Syndicate Live Sessions event cost from RON 85 to RON 125. Cluj Comedy Week Cluj Napoca, October 10-19 Over its five editions, Comedy Cluj has presented to the public over 600 comedy films and this year is no exception: over 150 movies will be screened, alongside musical events, a Frank Sinatra jazz show, stand-up comedy, contemporary 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

LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean

dance staging of Carmina Burana, Romanian theater and many other surprises. Colors of Maria Radio Hall, October 11-12 Artists from seven countries have embraced the voice and music of the great Romanian chanteuse Maria Tanase, transforming her most famous songs into unique and colorful interpretations. The event will bring together jazz improvisation, folk themes from the musicians’ countries of origin and original compositions, all in a journey between East and West. Traditional instruments such as the ney, duduk and oud will complete the atmosphere, accompanied by the exceptional local voices of Monica Madas and Maria Casandra Hausi. Ticket prices range from RON 40 to RON 80. Bonnie Tyler & Smokie Radio Hall, October 13 Bonnie Tyler enjoyed her peak fame in the 1980s when she collaborated with Jim Steinman, with international hits Total Eclipse of the Heart and Holding Out for a Hero becoming golden oldies. She will perform a three-hour set with Smokie, whose biggest global smash is Living Next Door to Alice. Tickets cost 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

Les Films de Cannes a Bucarest Cinema Patria, Cinema Studio, Cinema Elvira Popescu, October 24-30 Now on its fifth run, the festival gives Romanian audiences a chance to see some of the movies screened in Cannes this year, both in and out of competition. It will open with Leviathan, which won the Best Screenplay Award, directed by Andrey Zvyagintsev and starring Aleksei Serebryakov, Elena Lyadova and Vladimir Vdovichenkov. The 2014 Russian drama, set on a peninsula by the Barents Sea, tells the story of a man who struggles against a corrupt mayor who wants his piece of land. La Traviata Premiere Bucharest National Opera, October 30 Director Paul Curran will stage the premiere of Verdi’s La Traviata at the Bucharest National Opera, with the help of designer Gary McCann. “A combination of old and new, classic and modern,” is the institution’s promise. James Blunt Cluj-Napoca, October 31 James Blunt comes to Romania to promote his latest album on the Moonlanding World Tour 2014. The first single, Bonfire Heart, has been a success, with the video receiving well over half a million views in one week. “I am so excited for me and my band to get back on the road and play these new songs live, along with some of the older hits. My fans have never let me down, and there’s nothing better than playing for them at the shows. They have been incredibly supportive of me over the years,” commented the artist. Tickets cost from RON 175 to RON 225. oana.vasiliu@business-review.ro

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