STRONG GROWTH FOR NEW RESIDENTIAL AND OFFICE SPACE IN 2019 ROMANIA RESUMES THE LIBERALISATION OF ITS ENERGY MARKET
WHERE ROMANIA TALKS BUSINESS February, 2020 / Volume 24, Issue 1
www.business-review.eu
6 22
LOOKING FOR A NEW JOB OPPORTUNITY? SOFTWARE INDUSTRY HAS YOU COVERED 30 BUCHAREST FITNESS MARKET: COMPETITIVE AND FRAGMENTED
35
Dreamstime
ROMANIA STRIVES TO MAINTAIN ECONOMIC GROWTH
www.business-review.eu Business Review | January 2020
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi
6 Record-breaking transactions, strong growth for new residential and office space in 2019
• Editor-in-Chief •
8 Retail centres should be pillars of their communities
COVER STORY
10 Romania trying
What to expect from 2020
to maintain economic growth in busy electoral year
ENTREPRENEURSHIP
W
ith two rounds of elections approaching, 2020 looks like it’s going to be a very challenging year for the gov-
24 Hot industries for local
ernment as it has little room for maneuver, but foreign
startup investors in 2020
investments could bring a boost to the local economy. At the same
26 Startups competing for
time, the electoral year means that the business environment faces
talent in tight labour market
almost no risk of sudden changes in fiscal policy. Business people’s views at the end of last year and in the begin-
FITNESS
ning of 2020 were divided into two categories, so we can identify two different perspectives: some managers and founders explicitly say they want tax reductions, while others may accept tax increases as long as the government uses them to launch projects and investments in education and healthcare. Therefore, after a period with many uncertainties and fiscal surprises, local entrepreneurs and managers of multinationals prefer
35 Bucharest fitness market: competitive and fragmented
stability, may even agree with some tax hikes, and understand that
CITY
the public budget will be difficult for the government to manage in 2020. In 2019, the Romanian economy grew by around 4 percent, but our country is now at the end of a decade-long growth cycle and faces the challenge of finding new drivers of development as the resources supporting wage-led growth policies have run out. At the end of this growth cycle, despite the numerous achievements we
41 This year’s top events for music aficiodados
42 Got detox on your
could list, Romania still has a lot of improvements to make: it has
New Year’s resolutions list?
failed to upgrade its road and rail infrastructure, and its rural areas
44 Retrospective:
have remained poorer than those of its regional peers. Advancing on these goals could be crucial in making Romania more attractive
New spaces for culture and alternative art
for investors.
46 Cultural calendar
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
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4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Pharmaceutical retail revenues up 15 percent in 2019
tion. The companies operating in this sector registered a current liquidity of 1.05 during 2018, with working capital being exposed to negative shocks, in a context of volatility (lower revenues or non-collection of receivables). “The financial vulnerability of pharmacies in Romania has been marked by several trends observed in recent years. First of all, the growth of the
Josef Reiter is the new General Director of BMW Group Romania. Reiter has been with BMW for 25 years, having previously served as Area Manager for Austria, Sales Director in South Korea, General Director of the Czech and Slovakian branches, and most recently as head of the global division at BMW Group Web. In his previous position at BMW, Reiter contributed to the development of the group’s online marketing and communication platform, revamping it into a successful online sales platform.
Angela Cretu has been appointed CEO of Avon, following the company’s acquisition by Brazilian group Natura & Co. Prior to her January 2020 appointment, Angela served as the company’s Vice President for Central Europe, a position she had held since 2016. Angela Cretu graduated from the Bucharest Academy of Economic Studies and completed an executive education programme at the London Business School. She has been with Avon since 1998, when she started as an Area Sales Manager. page 5
pharmacy network (especially among the big chains) has increased competition, leading to a generalisation of discounts offered to customers. Secondly, the expansion of retail points financed by credit suppliers caused a decrease in
The cumulative market share held by the most important 10 players is 31 percent
the working capital, with these companies being very vulnerable to the late collection of
By Aurel Constantin
debts from the social insurThe study aggregated data
ance system or the slow sale
Coface Romania on the “retail
from 4,425 companies that sub-
of stocks. The third essential
of pharmaceutical products
mitted their financial statements
aspect refers to the increase of
in specialised stores” sector
for 2018 (as of September 2019)
dividends distributed in the
indicates a positive evolution
and generated a consolidated
2016-2017 period, their cumula-
of revenues in 2018, which
turnover of RON 19.07 billion.
tive level reaching RON 1.1 bil-
increased by approximately 15
The cumulative market share
lion, almost half the total of the
percent compared to 2017, with
held by the most important 10
last decade,” said Iancu Guda,
a slightly increased profitability
players is 31 percent, which indi-
Services Director at Coface
rate.
cates a low degree of concentra-
Romania.
A new study conducted by
Mercedes-Benz Romania and ENGIE Romania partner up to promote electric mobility By Mihai Cristea Mercedes-Benz Romania and
smart EQ clients who choose to
ENGIE Romania announced a
buy electric or hybrid plug-in
new partnership at the national
cars. Those interested can benefit
level, promoting the Elvi charg-
from an integrated package of
ing stations produced by EVBox,
consulting services, installation,
a company owned by ENGIE. The
maintenance, online monitoring,
partnership marks an attempt to
and technical assistance for their
facilitate access to home charging
electric stations. Clients who
stations for Mercedes-Benz and
choose ENGIE Romania as their
Throughout this initiative, ENGIE’s clients will participate in the reduction of carbon emissions
www.business-review.eu Business Review | February 2020
NEWS 5
Global technical consumer goods market to grow by 2.5 percent in 2020 Alberto Spinelli is the new Marketing and Communication Director of Lenovo for the EMEA region. Spinelli comes into the job with a wealth of experience in the hardware and digital service sectors. He served as a senior executive at companies such as Canon and Intel, but he is also a successful entrepreneur, with several launched start-ups under his belt.
By Aurel Constantin After a stable 2019, GfK experts expect the global market for technical consumer goods to record a value growth of +2.5 percent in 2020. Consumers across the world will spend an estimated EUR 1.05 trillion. Telecoms (+3 percent), Small Domestic Appliances (+8 percent) and Major Domestic Appliances (+2 percent) will drive the growth. Sales of IT, Office Products and Consumer Electronics are forecasted to remain stable and almost unchanged from last year.
The positive growth of the tech and durable goods market in 2020 will take place across all regions 5G, the telecom sector will return
Domestic Appliances will con-
to growth after a turbulent 2019.
tinue, driven by both emerging
tech and durable goods market
The demand for smartphones in
and developed markets. At
in 2020 will take place across
China and emerging Asia will be
the same time, consumers are
all regions, ranging from 2 to 3
among the major drivers not just
becoming increasingly digital
percent in value. The regional
for the telecom sector, but for
and concerned about sustain-
mix remains almost unchanged
the overall TCG market. Innova-
ability and how governments,
from 2019, when the Asia-Pa-
tion, performance and premium-
manufacturers, retailers and
cific regions accounted for the
ization will continue to be the
consumers can be more en-
majority of the sales turnover
key consumer trends boosting
vironmentally friendly in the
with 43 percent, while every
demand. With convenience,
tech and durable goods space,”
fourth Euro was spent in
health and well-being winning
said Pavlin Lazarov, GfK’s
Europe. “We assume that with
consumer attention and spend-
expert on technical consumer
the expansion and spread of
ing, the strong demand for Small
goods.
The positive growth of the
Magdalena Sniegocka has taken over CVI’s investments in Romania. Sniegocka joined CVI in February 2018 as an Investment Director and Member of the Investment Committee. In her professional career, Magdalena has led or participated in over USD 12 billion worth of investments and capital raising transactions as well as supervised multiple company portfolios. She started her career in London in Acquisition & Leveraged Finance at Lehman Brothers and Nomura.
electricity provider can also benefit from an e-mobility subscription, with access to more than 160 charging points countrywide, assuring public area charging for electric cars within the limit of 3,000 km. “The transition to zero carbon emissions is the heart of ENGIE Romania’s strategy, developing high-performance and innovative solutions for our clients. This will enable them to participate in the reduction of carbon emissions,” says Nicolas Richard, Marketing & Sales Director at ENGIE Romania.
Mircea Ciucur is the new manager of the solutions team at ELKO Romania, one of the biggest distribution companies in the Romanian IT&C industry. Ciucur has previously worked in the company, as General Manager between 1999 and 2011. His career in the industry continued in roles such as Head of the IT Department at DOMO, CEO at IT&S, and Managing Director at ALEF Distribution, until he rejoined ELKO in December 2019.
www.business-review.eu Business Review | February 2020
6 REAL ESTATE
Record-breaking transactions, strong growth for new residential and office space in 2019 The construction of homes and offices recorded a good year in 2019. With 62,000 new apartments delivered to the market, 2019 passed the previous record of 57,600 from 2018. There was also a record level of transactions in the office sector, with over 450,000 square meters changing owners. By Aurel Constantin of residential, office or mixed-use projects, with some projects also potentially including a hotel. An interesting fact is that almost 90 percent of the traded area was located in sectors 1 and 2, as developers are focusing on the central area of the city through purchases made on Calea Victoriei, Dorobanti, Kiseleff or Doamnei, but also on the central-northern area, near the big office hotspots. “In 2019, developers’ interest for office projects was reconfirmed and it materialised through their concern to secure their pipelines for the coming years. The same trend is confirmed in the residential segment, and we can note an expansion of the areas of interest and the coverage of some developers, who have made much more diverse purchases outside the traditional areas of interest. As for the buyer’s profile, we’ve noticed the entry of Prices went up by 10 percent in 2019 compared to 2018 for new apartments
I
developers from other cities on the Bucharest market, as well as decisions by some landowners to start projects of their own, posi-
n the big cities, 40,000 old apartments
of large real estate developers have secured
tioning themselves as new developers on the
and 15,000 new ones were put up for
the land they needed for new projects consist-
market,” said Alexandru Mitrache, Head of
sale. Prices went up by 7 percent in 2019
ing of over 6,000 homes and 130,000 square
Transactions, Land & Investment, Cushman &
compared to 2018 for old housing and by
meters of offices. The cumulative area of the
Wakefield Echinox.
10 percent for new apartments, according
purchased land amounts to 36 hectares, and
to imobiliare.ro data. The price difference in Bucharest between new apartments in the central area versus those the suburbs was EUR 40,000 (EUR 93,000 versus EUR 53,000), up from EUR 30,000 in 2018. For old apartments, the price difference was EUR 16,000 (EUR 77,000 versus EUR 61,000), up from EUR 15,000 in 2018. The acquisition of land for new developments also reached high levels in 2019. According to data from real estate consultancy firm Cushman & Wakefield Echinox, a number
the value of transactions is estimated at EUR 170 million, which is equivalent to an average
LAND UNDER FORMER FACTORIES SEEN AS “GOLD MINE” FOR REAL ESTATE
price of EUR 470 per square meter.
Among the most important land transactions
In Bucharest, there were 24 major transactions with land intended for the development
of 2019 were the purchase of a 2.6-hectare plot from the former Dacia Textile factory in
www.business-review.eu Business Review | February 2020
REAL ESTATE 7
the Bucurestii Noi neighbourhood (where
sqm), followed by Slatina, with 13 percent of
operating in the automotive sector. However,
Skanska will build an office project), the two
the demand (62,000 transacted sqm).
these types of projects have longer imple-
hectares of the Frottierex factory in the Barbu
The largest transaction was carried out
mentation periods, extending by up to 18-24
Vacarescu area (where Turkish Caba Grup will
by JLL Romania, namely the lease of almost
months from when the first discussions take
develop a mixed-use project) or the 5,000-
72,000 sqm by Profi in CTP Bucharest West
place. In the case of logistics projects, the
tion market of Austrian developers such as
park. Other notable transactions in which
implementation period usually lasts up to
Strabag Real Estate, S + B Gruppe or S Immo
JLL was involved in 2019 were the lease of
one year.
was a notable move, while Israeli developers
16,000 square meters to Urgent Cargus in the
were very active as well,” Alexandru Mitrache
P3 Bucharest A1 Park and the lease of 8,400
spaces exceeded 4.3 million square meters,
added.
square meters to Marelvi Impex in the MLP
which was double the volume recorded in
sqm plot on Doamnei street, in the heart of the Capital, purchased by S + B Gruppe. Developers with Romanian capital, such as One United, were the most active in 2019, having had a share of about 39 percent of the total transaction value. “At the same time, the return to the land acquisi-
Bucharest has turned into one of the most dynamic economies in the CEE region. This is
Bucharest West Park. Of all the spaces leased na-
In 2019, the stock of modern industrial
2015. Another trend in 2019 was developers’ high interest
closely related to its labour force, which offers
tion-wide over the last year,
a nice mix of good language skills and much
more than 150,000 square
lower costs than Western Europe. Romania
meters (approximately
spaces that are small
and Bucharest do have a couple of things that
32 percent) represented
but show great growth
set it apart from regional peers and even from
transactions concluded
potential. Such clients,
more developed markets in Europe: a very
directly between own-
most of whom are cur-
strong IT&C community.
ers and tenants.
“While vacancy is expected to be on the rise over the next couple of years, there are
rently located on the former industrial platforms
The growth in 2019 rose to the previous year’s
some silver linings. Bucharest still has quite
level, when record demand for
a lot of stock built about a decade ago and
industrial spaces had been recorded
part of it would not meet today’s qualitative/
on the market.
technical standards. Vacancy tends to vary
in attracting clients with
“The demand for industrial spaces has
in large cities, will have to migrate to modern industrial spaces in order to provide better work conditions for their employees, but also to comply with stricter regulations regarding fire safety permits.
quite a lot from one submarket to another and
maintained its positive evolution over the
even among projects in the same submarket.
past few years. The entry of new investors
Furthermore, on a relative (per capita) basis,
and the diversity of the locations
Bucharest’s office surface is still around one
in which they’re developing
third below Warsaw’s, which is also signifi-
new projects has brought
cantly below Western European markets,
extra competition on the
so there might still be quite a lot of room
market, maintaining its
for growth,” said Sebastian Dragomir, Office
dynamics. We follow the
smaller units of 800-
Advisory Director at Colliers International
evolution of demand
1,500 sqm, as well as
Romania.
with great interest,
large units in industrial
bearing in mind the fact
buildings spreading on
“We can see increased interest from new investors in developing modern industrial projects within the city of Bucharest. Here we can refer both to projects that allow the leasing of
several floors. These types
DEMAND FOR SMALL INDUSTRIAL SPACES
that the industrial market
The demand for industrial and logistics
reported record demand
of buildings are taken into
spaces in Romania in 2019 reached a total of
over the past four years,
account in areas in which the
about 476,000 sqm, a value comparable to
especially given the expansion of
price of the land is high and an in-
that of 2018, when transactions amounted to
retail and logistics companies,” stated Costin
dustrial development would not provide the
a total of 514,000 sqm. Bucharest attracted
Banica, Head of the Industrial Department at
level of performance expected by investors.
the largest demand of industrial and logistics
JLL.
We believe that 2020 will bring the first indus-
spaces in the country, with nearly 76 percent of total purchases (approximately 360,000
Also noticeable was the increase in production and industrial spaces from companies
trial projects developed on multiple floors in Romania,” said Costin Banica.
www.business-review.eu Business Review | February 2020
8 REAL ESTATE
Retail centres should be pillars of their communities BR sat down with Fulga Dinu, country manager for operations at Immofinanz Romania, about the local retail market’s adoption of new international trends and the areas that have remained unexplored on the Romanian market. By Anda Sebesi One of the obvious trends on the local market is the online-offline mix and the creative ways of adapting the online concept to the offline world. Can you please develop this idea? Our entire world is rapidly digitalizing and we need to adapt to this global trend. An impor-
more sophisticated and have moved from
area in VIVO! Cluj-Napoca, which has at-
tant point refers to consistency in commu-
providing a product to offering a service or
tracted famous international brands like Peek
nication, both online and offline, taking into
experience. The biggest challenge for retail-
& Cloppenburg: the performance of the first
account that the new generation of buyers no
ers nowadays is to keep improving the retail
such store in the Transylvanian region has
longer sees any difference between online and
customers’ experience and truly capitalise
already gone beyond expectations. In terms of
offline shopping.
on the advantages the offline environment
unexplored areas, as far as shopping centres
offers compared to the online world. From
are concerned, the focus should be placed on
online stores and physical stores and have un-
this point of view, factors like the fragrances,
the needs of the entire family.
derstood that these two channels need to be
sounds, and human interactions that can be
complementary in order to further develop.
found at a store are hard to replace.
At the moment, many brands have both
use to adapt the online concept to the offline
very much focused on creating good quality
environment, and one consists of creating
experiences that are supplemented by leisure
awareness for a product online and offering
areas, children’s playgrounds and family
certain bonuses when the purchase is made in
areas. Based on the diversity of the services
Recently, almost all retail centres in Romania have been transformed into entertainment platforms by balancing shopping and leisure facilities. In your opinion, what is the next step in this direction on the local market?
the physical store. Similar approaches are the
provided, our VIVO! shopping centres have
Entertainment definitely plays a major role
in-store pick-up of products bought online
become real hubs for the communities they
in shopping centres, and customer experi-
or the option to return those products in the
serve. And it is our goal to support the devel-
ence can be improved even further with
store, and vice versa, namely customers being
opment of the communities we are part of.
the implementation of new technological
There are several techniques that companies
As a retail landlord, IMMOFINANZ is
able to place orders online while they’re in the physical store.
developments. As for the shopping experi-
What are the main growth drivers of the current Romanian retail scene and what are some of the unexplored areas?
ence, retailers will continue to digitalize the
The recent economic landscape has been
but not least, retail centres should be pillars
favourable to retail consumption. A higher
of their communities by offering support and
purchasing power has definitely brought
resources for cultural, educational and social
The development of technology heavily
significant increases to Romanian food and
activities. So far, IMMOFINANZ has proven to
impacts consumer behavior; therefore, our
non-food consumption. One of the best
be a proud partner of the Romanian commu-
customers’ wishes have become more and
examples would be the newly-refurbished
nities where it operates its shopping centres.
Another trend is the shift towards creating an experience in the store. What does this shift imply and how is it translated to real estate projects in Romania?
shopping process, in order to customise it for each and every one of their customers. Last
10 COVER STORY
Dreamstime
www.business-review.eu Business Review | February 2020
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COVER STORY 11
ROMANIA TRYING TO MAINTAIN ECONOMIC GROWTH IN BUSY ELECTORAL YEAR The new government has little room for manoeuvre in the economy in 2020 as two rounds of elections approach, but foreign investment - both direct and portfolio investments - could bring a boost to local activity. On the other hand, the business environment faces almost no risk of sudden changes in fiscal policy in an electoral year. By Sorin Melenciuc
I
n 2019, the Romanian economy grew by around 4 percent, a decent pace given the many challenges experienced last year due mainly to the former government’s policies. In fact, the
local economy is now at the end of a decade-long growth cycle and faces the challenge of finding new drivers of development as the resources supporting wage-led growth policies have run out. At the end of this growth cycle, there are a lot of achievements to list, but plenty of red flags remain on the board as well.
ACHIEVEMENTS In 2019, Romania’s gross domestic product (GDP) was certainly close to EUR 220 billion, or more than EUR 11,000 per inhabitant, and the average wage rose to around EUR 650 per month. The unemployment rate is also at a three-decade low. It is still a low economic level compared to western European economies, but it is by far the highest ever achieved in the country’s history. From a regional perspective, Romania is now more developed than all of its neighbour-
www.business-review.eu Business Review | February 2020
12 COVER STORY
ing countries, with the exception of Hungary. In fact, in terms of GDP, Romania is by far the largest economy in its region, overtaking all of its neighbours – Romania’s GDP is as large as the GDPs of Hungary, Serbia and Bulgaria combined. At
investments worth EUR 83.8 billion Romania by the end of June 2019, an all-time high, up 7 percent (EUR 5.5 billion) against June 2018. Much of this new investment was spent on real estate develop-
the same time, the differences
ments, as Romania’s big cities are
between Romania and its more
experiencing urban regeneration
developed regional rivals, such as
and improvement. New residential
Hungary, Slovakia or Poland, have
compounds, brand new office tow-
eroded during the last few years
ers and retail projects are under
as the south-eastern European
development in Bucharest, Cluj,
country has managed to maintain
Timisoara and Iasi, Romania’s big-
higher growth paces.
gest cities, and they are changing
Another positive trend is a
the country’s image.
surge in investments last year. “The contribution of gross fixed
RED FLAGS
capital formation has consider-
But all these achievements have
ably exceeded that of household
come at a cost. Romania’s current
consumption, reaching an 11-year
account balance of payments
high, mainly on account of invest-
registered a deficit of EUR 9.92
ments in new construction works,
billion in the first 11 months of last
as well as the pick-up in equip-
year, up 21 percent compared to
ment purchases, with a favourable
January-November 2018, while the
impact on the economy’s future
fiscal deficit was estimated at 4.3
growth potential,” according to a recent Romanian central bank re-
percent of GDP for the entire year, the highest level in the EU and
port. Foreign direct investment (FDI), a long-term source of capital
significantly above the 3 percent-ceiling imposed by the European
for development, could be seen as a positive surprise of the last
bloc’s treaties.
couple of years.
At the same time, there are few remaining drivers of growth.
Official data show that FDI in
In the first nine months of 2019,
Romania totalled EUR 5.15 bil-
Romania’s GDP rose by 4 percent,
lion in January-November 2019,
but the increase was mainly due
compared to EUR 5.02 billion
to a surge in construction, by 16.4
in the same period of 2018, “of
percent year-on-year, in the infor-
which equity (including estimated
mation and communications sec-
net reinvestment of earnings)
tor (8.9 percent), in entertainment,
amounted to EUR 4.4 billion and
culture and recreation activities as
intercompany lending recorded a
well as in the repair of households’
net value of EUR 649 million,” the
goods and other services (8.6
BNR writes.
percent).
This increase was “determined
But industry, a sector that ac-
by an improvement of the percep-
counts for almost a quarter of the
tion of investment risk (after the
country’s GDP, declined by 1 per-
European Parliamentary elections)
cent year-on-year in January-Sep-
and of the Romanian economy’s
tember 2019, agriculture dropped
potential in the medium term
by 4.1 percent, while activity in
(considered to be higher than the
banking and insurance decreased
potential of other countries in the
by 0.4 percent. The industrial sec-
region),” Banca Transilvania analysts indicated in a research note. This means that FDI in Romania amounted to more than EUR 10 billion over two years, covering about half of the external deficit registered during the same period. Following this new influx of foreign investment, the stock of FDI
tor’s underperformance continued in the last quarter of 2019. “All three major industrial groups (manufacturing, energy and mining) were deeply in the red. At the same time, local manufacturing was among the weakest in the EU in November (-4.6 percent
in Romania is very likely to reach the EUR 90 billion threshold in
y/y). This development had been visible since the spring of 2019 and
2020. Official data show that foreign investors had made total direct
suggests a series of price and non-price competitiveness issues for
www.business-review.eu Business Review | February 2020
COVER STORY 13
local manufacturing, besides the impact of the global trade conflict
For the first time in decades, Romania now seems to be mature
and changes in the car industry,” BCR’s analyst Eugen Sinca wrote in
enough to address this issue of rising importance among its inhabit-
a research note. At the same time, Romania’s exports resumed the
ants. It is no wonder that quality of life has become so important in
widening trend in their negative contribution to economic growth
Romania, as millions of people have already emigrated to wealthier
amid a more pronounced reaccel-
countries and have enjoyed the
eration in the growth of imports
living standards offered by those
relative to that of exports of goods
places. Meanwhile, the other mil-
and services.
lions of Romanians who chose to
“The trends were viewed as
remain in their country have had
particularly worrisome by some
the opportunity to travel and com-
Board members, inter alia in the
pare their living standards with
context in which the weakening
those in different countries and
of exports had also coupled with a
are now pressuring the authorities
faster decline in industrial produc-
to improve the situation at home.
tion, mainly on the back of the
In terms of quality of life,
automotive segment, carrying the
Romania’s cities still have plenty
potential to increase the negative
of improvements to make if they
contribution of that sector to GDP
want to be compared with cities
dynamics, on the supply side,” Ro-
in the western world. In Mercer’s
mania’s central bank noted. Fiscal
2019 edition of the “Quality of liv-
woes coupled with weak external
ing city ranking” survey, Bucharest
demand and the workforce crisis
moved down two places, coming
are factors that limit the growth
in at 109 out of 231 ranked cities.
potential in 2020 and the following years and put pressure on the
Despite its huge financial resources and high earnings, Bucharest is
government and businesses alike to find new development strate-
affected by poor public management, incompetence, and stunning
gies, experts say.
corruption. But other cities in Romania have started to really improve. In
TARGETS FOR THE NEXT DECADE
some cities in Transylvania, where urban life emerged earlier and
In this environment of lower fiscal resources, the government needs
was historically more sophisticated, the quality of life is much high-
to address some urgent goals. Unlike Hungary or Poland, Romania
er and the situation is improving every year, helped by EU funds.
has failed to improve its road and rail infrastructure, and its rural areas have remained poorer than those of its regional peers. These goals could be seen as crucial in making Romania more attractive for investors – and even more importantly, for its own people. Official data suggest that Romanians are still leaving their country at a worrying rate and many local experts are trying to find the real drivers behind this trend. Some entrepreneurs and politicians think they have the answer: beyond earnings, people leave mainly because they’re seeking a better quality of life for themselves and their children.
Cities like Cluj, Sibiu, Oradea or Timisoara are attracting people and
Many experts suggest that investment in infrastructure – and
developing, while cities in other parts of the country still offer low
this includes a large spectrum of targets, from roads and railroads to
quality of life and provide little hope to their residents – and they
urban or rural infrastructure - is key to improving quality of life. In
are losing people at a rapid pace.
many developing countries, this has also become a political issue, as
Improving quality of life is crucial in shaping Romania’s future,
politicians understand that promising a good quality of life could be
and this could be seen as one of the country’s main priorities in the
the winning ticket in the electoral lottery.
next decade.
www.business-review.eu Business Review | February 2020
14 COVER STORY
The outlook for FDI in Romania in 2020 Against the backdrop of declining global demand, ongoing trade tensions and significantly reduced growth in the Eurozone, the forecast for the evolution of foreign investments is optimistic in 2020. EU membership, fairly good international relations, low public debt, a competitive industrial sector and an adequate business environment are positive things to be considered by investors, but what to expect for FDI in Romania in 2020? By Claudiu Vrinceanu THE POTENTIAL OF NEW FOREIGN INVESTMENTS IN IT&C
percent of expenses, respectively
An important question regarding
to the “Worldwide R&D Incen-
the evolution of investments in
tives Reference Guide 2019” global
2020 is whether the value of IT&C
study by EY. “However, countries
FDI will increase. In recent years,
such as Italy have introduced two
fiscal facilities have stimulated
less generous measures since the
foreign investments and kept
previous fiscal year, namely the
the Romanian IT industry com-
obligation to certify cost effi-
petitive, in a race for investments
ciency and the technical report to
with other countries that have
describe the R&D activities carried
zero income taxes for program-
out by a company,” said Claudia
mers, such as Ukraine, Poland or
Sofianu, partner in the Tax and
Belarus. The deficit in IT workforce
Legal Assistance Department at EY
at the EU level is so great that the
Romania.
200 percent in Poland, according
elimination of fiscal facilities could result in a massive reduction in the number of specialists in the coun-
CAN ROMANIA ATTRACT A NEW CAR MANUFACTURER?
try, and a major negative impact on
2020 should be the year during
inbound investments (FDI).
which a new plan is developed to
In Romania, there has been a
attract a third car manufacturer
lot of talk lately about tax facili-
to Romania, adding to Renault in
ties in the IT field, and some have
Pitesti and Ford in Craiova, in the
even floated the idea of eliminating
context of Romania having lost
them. It is premature to say whether these tax facilities will in fact
out on three major investments in the sector over the past ten years.
be eliminated, but a debate on finding a new competitive advantage
Volkswagen possibly picking Romania as the location for a new
for Romanian IT is needed in the context of the competition with
multi-brand vehicle assembly plant was widely debated last year.
countries in the region to attract foreign investors. A possible solution would be in the field of Research and Devel-
Besides some important advantages that a country could offer to an automaker - infrastructure, a competitive labour force and a large
opment. From a government’s point of view, economic growth and
network of original equipment manufacturers (OEM) concentrated
attracting foreign investment remain the main objectives, and the
in the region - the strategy to attract a new investor in the automo-
levers used in other countries have mainly been related to fiscal
tive sector will need to include projects such as: a dual schooling
policies applicable among players in the R&D field. Other countries
system to train human resources in cooperation with the academic
introduced extremely attrac-
and research environments, state
tive fiscal measures in 2019, for
aid for utilities through the setup
example Indonesia, which an-
of an “industrial park” comprising
nounced generous tax deductions
the factory and several component
of up to 300 percent for activities
suppliers, and the creation of a
carried out on its territory. Other
dedicated center for Research,
examples we can mention are:
Advanced Technologies and Digi-
Singapore’s increase in the value
tisation.
of tax deductions of up to 250
On a global level, Romania
www.business-review.eu Business Review | February 2020
COVER STORY 15
needs strategic thinking regarding the development of its car indus-
nia. Japan is the largest Asian investor in Romania and 40,000 jobs
try, including a digital component. This is necessary in the context in
have been created in Romania by Japanese companies, according to
which the European Union is lagging behind other global competi-
the Japanese Foreign Affairs Ministry.
tors (US, Southeast Asia), not so much in terms of production, but rather in the digitisation of products and processes.
STATE AID SCHEMES Romania continues to provide investors with access to several types
THE INVEST ROMANIA STRATEGY IN 2020 Invest Romania, a part of the Economy Ministry, is the “one-stopshop” for foreign investors, and an ideal place for an investor to build
of incentives, under various types of regional state aid schemes. 2020 will be the last year of the State Aid Scheme-GR 807/2014, according to which an investor can access a maximum of 50 percent
an institutional link with public
of non-refundable aid from an in-
authorities.
vestment of at least EUR 1 million, provided that they pay corporate
In recent years, Invest Romania, the governmental department
tax, hire new employees, and pay
dedicated to attracting foreign
taxes to the local budget adding up
investors, has been engaged in
to at least the amount as the grant
constant activity, but has not
they received within 5 years from
shined through special initiatives,
the completion of the investment. Moreover, the Economy Minis-
so it remains to be seen what the strategy of this structure will be in
try recently decided to take charge
2020, as well as in the medium and
of the state aid programme for film
long term. For the time being, as a
production in Romania starting
simple office within a ministry, the
with 2020. The aid scheme is multi-annual
Invest Romania brand could start to aspire to the title of Government
and will run until the end of 2020,
Agency in 2020, which would turn
with an annual budget of EUR
it into a larger structure, with a
50 million. Thirty-five percent of
larger number of specialists and a
the eligible costs for film produc-
truly global vision.
tion carried out in Romania could be covered by non-reimbursable
The business environment has been talking more and more about
financial allocations, and an ad-
the potential benefits of a country
ditional 10 percent of non-reimbursable allocations can be made
branding strategy for Romania. A country brand could help us continue to attract foreign investment.
available, provided that the films produced promote a Romanian
The future brand campaign for Romania should be carried out by
city, a region or the whole country as a tourist destination.
central authorities, and the government should take into account the needs of all those who pay taxes at the state level, through which
MORE FDI THROUGH M&A
such a campaign could be supported and financed.
Mergers and acquisitions (M&A) will constitute a large share of FDI flows in 2020 as well. “We remain optimistic about the evolution of
THE RETURN OF JAPANESE INVESTMENTS IN ROMANIA
the mergers and acquisitions market in 2020. Activity will be intense
After a period of tense commercial relations between Romania and
during this period in which the macroeconomic outlook remains
Japan, particularly in the context in which Japanese Prime Minister
solid and companies’ results maintain an upward trend,” said Ioana
Shinzo Abe’s visit to Bucharest was treated superficially by Roma-
Filipescu Stamboli, Corporate Finance Partner at Deloitte Romania.
nian authorities, things seemed to be improving at the end of last
2019 was an intense year for deal making, with the number of
year, so that there is now more optimism around the possible return
transactions reaching a 10-year high. Following a sluggish start in
of Japanese investors’ interest in our country.
certain circumstances, the market regained its pace in the second
2020 may be the year when we see a revamp of FDI from Japan entering the Romanian market. A favourable context could be en-
quarter and the total number of transactions exceeded 100. Among the biggest deals of 2019 were the acquisition of CME
abled by better diplomatic relations, considering that president Klaus
group, which owns the biggest media company in Romania (PRO
Iohannis met with Shinzo Abe in Japan in December 2019, and that
TV), by Czech investment fund PPF, tech unicorn UiPath’s USD
the trade agreement between Japan and the European Union will
568 million financing, Eximbank takeover of Banca Romaneasca,
come into force in the spring of 2020. Generally speaking, the quality
the acquisition of betting company Superbet by investment fund
of the workforce and the information technology environment are
Blackstone, and the takeover by INGKA group of seven wind farms in
some of the elements that could attract Japanese investors to Roma-
Romania from Vestas.
www.business-review.eu Business Review | February 2020
16 COVER STORY
Venture funds and angel investors to look out for in 2020 The Romanian venture capital scene did well in the second half of 2019, with 22 investment rounds amounting to EUR 25 million. It seems like a good evolution compared with the January - July 2019 period, which saw around 25 investment rounds with about EUR 15 million invested in total, according to Activize estimations.
A
By Claudiu Vrinceanu
fter years
UiPath, the first Roma-
of constant
nian unicorn, the local
growth, 2019
tech startup ecosys-
set a new milestone
tem is experiencing
in the development
a radical transfor-
of the Romanian tech
mation. We’ve seen
startup ecosystem.
double-digit growth in
It is growing up and
indicators: the num-
attracting investors’
ber of startups, new
interest.
accelerators, capital
The funding of
raising rounds, total
Romanian startups
funding amount,”
has become more
said Florin Vasilică,
sustainable and diver-
Partner, Leader of
sified. The pipeline
Transaction Advi-
of local and interna-
sory Services at EY
tional ventures is no
Romania.
longer driven by a few small-sized compa-
2020 TRENDS
nies in e-commerce
This year, the seed in-
and marketplaces,
vestment area for tech
but is rather showing
startups is expected
a balanced mix of in-
to follow trends such
novative ideas in FinTech, Biometrics, Blockchain, Robotic Process
as: the creation of joint projects between venture capital funds and
Automation and HR-related solutions. Bucharest is the main hub in
business angels, the effect of FintechOS and TypingDNA’s suc-
Romania, driven by its strong digital workforce and diversity. Top
cess on foreign investors’ appetite for Romanian tech startups, the
funding is driven by international investors with only a few local
launch of regional investment funds, and the emergence of new
Romanian funds able to participate in Series A+ rounds. Besides
individual investors. There is potential for the number of busi-
the local funds investing in the ecosystem, we are seeing a growing
ness angel investors in Romania to grow, but the current legisla-
number of international players
tive framework is not attractive
scouting the Romanian tech mar-
enough for potential funders, so
ket for investment opportunities.
it should be reshaped in order to
Due to the lack of locally-grown
really stimulate this alternative
venture capital (VC) funds, most
type of financing for Romanian
early-stage startups are looking to
companies.
join external incubators and accelerator programs. “Empowered by the success of
Romania has consistently been highlighted as one of Europe’s emerging hubs for tech and in-
www.business-review.eu Business Review | February 2020
COVER STORY 17
novation, a reputation the country has worked hard to attain. One of
ROCA X
the reasons behind the rise is the presence of venture capital firms.
ROCA X is an investment fund that has CITR and Banca Transilvania
The role of these investment vehicles is to provide capital, technical
among its shareholders and focuses on early-stage tech startups
resources and business advice to increase companies’ chances of
with tickets between EUR 50,000 and 500,000. After evaluating
success.
more than 150 startups in just a few months, ROCA X has already made five investments worth EUR 600,000.
INVESTORS THAT EVERY FOUNDER SHOULD BE PITCHING TO RIGHT NOW
LAUNCHUB (BULGARIA)
Venture capital firms are a group of inves-
At the regional level, LAUNCHub Ventures
tors, investment banks, and any other
was one of the first investment funds to
financial institutions that provide venture
play a major role in catalysing the Bulgar-
capital. Meanwhile, we have also seen the
ian startup ecosystem. The venture capital
rise of individual investors who finance
fund has started to look for startups and in-
Romanian startup and are called angel in-
vestments outside Bulgaria, and Romanian
vestors. Still underserved by global funding
startups and scaleups could be among its
players, the local tech startup ecosystem
targets. The Bulgarian fund is also willing
has developed with the involvement of EU-
to co-invest with other European venture
backed VC funds and the local community
vehicles and is now raising a second fund
of investors and entrepreneurs. Read on to
aimed at filling another regional invest-
learn about seven venture and growth capi-
ment gap.
tal funds and angel investors worth being analysed and primed for major investments in 2020.
SACHA DRAGIC Sacha Dragic, the founder of Superbet group, has created the D
GAPMINDER
Moonshots investment fund, so we can expect him to continue to
Undoubtedly, venture capital fund GapMinder, with a budget total
invest in tech startups and talented teams. He recently invested in
of EUR 40 million, has become a major investor for Romanian tech
Medicai, a tech startup that strives to change the way multidisci-
startups. The investments GapMinder
plinary medical teams cooperate with their
makes go up to EUR 200,000 for startups in
patients through an online platform. The
the first development stage and to over EUR
entrepreneur is also involved in Mozaik
1 million for IT companies that have already
Investments, a privately-held investment
deployed products on the market.
company created by a group of private equity specialists and entrepreneurs.
GapMinder’s most recent investments have been its entry into the shareholding of local startup Feexers, an online marketplace
SERGIU NEGUT
that connects clients with various provid-
The former manager and now dean of the
ers of personal care and home maintenance
Maastricht School of Management, Sergiu
services (electricians, plumbers, painters,
Negut is one of the best known Romanian
beauticians, etc.), and its participation in
angel investors. He obtained a USD 14 mil-
the USD 7 million Series A financing round
lion investment for FintechOS, one of the
for TypingDNA, a Romanian cybersecurity startup established in
startups he founded. He also took part in another important trans-
2016 in Oradea.
action: the sale of 75 percent of FruFru shares to Unilever.
EARLY GAME VENTURES
ANDREI PITIS
Early Game Ventures is an early-stage venture capital firm in Ro-
Andrei Pitis is another relevant business angel who aims to help
mania investing in startups that create new industries in Europe’s
entrepreneurs succeed with a business idea by investing his own
emerging markets. The fund takes a correspondingly substantial
money. He set up a company through which he’s aiming to contrib-
equity ownership position (5 to 15 percent) in its investments and
ute to increasing the number of entrepreneurs becoming million-
joins as a member of the company’s board of directors (Series A).
aires through technology startups.
At the Accelerator stage, the fund invests anywhere between EUR
As a conclusion, empowered by the successes of UiPath, Typ-
50,000 and EUR 200,000 in exchange for 5 to 15 percent of common
ingDNA, FintechOS and EU-funded VCs, the Romanian ecosystem
stock. At the Seed stage, the firm’s sweet spot is EUR 500,000 but, if
has been more active than in previous years, and the foundation
the opportunity is really promising, the fund may invest as much as
built will set the stage for the next Series A and more seed rounds
EUR 4.5 million in a single company.
for 2020.
www.business-review.eu Business Review | February 2020
18 COVER STORY
New Year’s resolutions for managers and entrepreneurs: should taxes go up or down in 2020? When it comes to the relationship with the state, entrepreneurs and managers of Romanian companies fall into two groups: those who want a stronger government and are waiting for it to intervene and solve their problems, and those who want to be left alone. This cleavage seems stronger at the beginning of 2020 in terms of expectations regarding taxes in the new year. By Claudiu Vrinceanu
T
he business environment’s views at the end of last year and
“THE BUSINESS ENVIRONMENT NO LONGER NEEDS TAX CUTS”
in the beginning of 2020 are divided into two categories, so
Therefore, after a period with many uncertainties and fiscal sur-
we recognise two different
prises that influenced the business
perspectives: some managers and
environment, local entrepreneurs
founders explicitly say they want
and managers of multinationals
tax reductions, while others may
prefer stability, may even agree
accept tax increases as long as the
with some tax hikes and under-
government uses them to launch
stand that the public budget will
projects and investments in educa-
be difficult for the government
tion and healthcare.
to manage in 2020. “We do not want tax breaks. A reduction in
www.business-review.eu Business Review | February 2020
COVER STORY 19
taxes will create pressure on the public budget in 2020,” said Felix
tion for developers since 2001, which has kept the Romanian IT
Patrascanu, the CEO of the largest courier company in Romania,
industry competitive, but lately, prime minister Ludovic Orban has
FAN Courier. A part of the business environment
made several statements where he suggested that he was thinking of changing
strongly rejects measures that could
the legislation regarding tax facilities for IT
seriously affect the economic and social
employees.
balance, by generating lower revenues for
In this context, it is important to say
the state and thus leading to a precarious
that the fiscal facilities have kept the Ro-
state budget in 2020, potentially affecting
manian IT industry competitive in the race
key areas such as healthcare, education and
with other countries that offer develop-
infrastructure investments. “The business
ers zero income tax, and the IT workforce
environment no longer needs tax breaks;
deficit in the EU is very high, so eliminating
a country will not work with just tax cuts
these fiscal facilities in Romania would
and continuous spending increases and
lead to a massive exodus of specialists.
no adequate programmes to stimulate the entrepreneurial spirit,” said Florin Jianu, the president of CNPIMMR. A reduction of the general VAT from 19 to 16 percent and of the VAT for food from 9 to 5 percent, in the current fiscal-budgetary context, would further contribute to deep-
A more efficient collection of taxes is the main challenge of 2020 in the fiscal field, under a budget deficit target of 3.6 percent of GDP, above the maximum limit set for EU Member States, together with meeting the medium-term budgetary objective (MTO) to consolidate public finances, according to a PwC analysis.
ening imbalances, this time by reducing revenue, beyond spending growth in 2020, been adopted, say representatives of the Co-
TOP PRIORITIES FOR 2020: DIGITISATION AND A MORE EFFICIENT TAX COLLECTION PROCESS
alition for Romania’s Development, a body
According to Daniel Anghel, partner and
that includes the most important players in
leader of fiscal and legal services at PwC
the business environment. As 2020 seems
Romania, Romania needs to simplify its
to be a transition year to a new government
tax payment process through digitisation.
that is likely to stay in power for four years,
“The ANAF IT systems have become over-
reform measures will be postponed until
burdened and are affecting the entire pro-
2021, when we will see tax increases.
cess of tax collection, both from the budget
in line with the legislation that has already
On the other hand, there are managers of multinationals and Romanian business people who believe that the taxes that have
perspective as well as for the taxpayers, who bear a greater administrative burden.” After more than two years with many
to be adjusted downwards are those on the workforce, claiming that
unexpected changes in taxation, what the corporate environment
Romania’s labour taxes are too high.
wants first and foremost is a period of real dialogue regarding the tax changes that may be applied in 2020 or 2021. The entrepreneurs
TAX CHANGES IN 2020
and managers who have built companies
In terms of taxation, there are two highly
on the local market, however, also have
relevant topics for the business environ-
a number of important priorities that are
ment at the beginning of 2020: the elimina-
worth an analysis by government officials.
tion of the surtax on part-time contracts
Specifically, entrepreneurs and man-
and a possible future cut to tax facilities in
agers have identified several consistent
the IT industry.
priorities at the beginning of the 2020,
The elimination of the overtaxation of
which focus on digitising and reforming
part-time contracts entered into force on
the ANAF. Business people are not expect-
January 1, 2020, a step which, according to
ing tax cuts, but they want to be allowed
the business environment, represents a re-
to focus on their business. Entrepreneurs
turn to normality after more than two years
do not complain about the tax levels, but
in which part-time workers were affected
expect results in exchange for the taxes
by fiscal measures that we could describe as
they pay and protection against unfair
disproportionate. The IT industry has been benefiting from an income tax exemp-
competition caused by discriminatory tax measures. They want honesty and lucidity from the state.
www.business-review.eu Business Review | February 2020
20 EXPORTS
Using FDI to upgrade Romania’s exports Foreign direct investments (FDIs) have a positive impact on Romania’s export performance, according to a study published by the European Bank for Reconstruction and Development (EBRD) at the end of 2019. When policy makers are looking for effective and actionable policies aimed at upgrading quality among domestic exporters, they should consider FDI promotion and, in particular, efforts to bring foreign investors into industries which are likely to supply inputs to Romanian firms, the paper outlines. By Claudiu Vrinceanu same industry may learn by observing what multinationals produce and export and in this way upgrade the quality of their own exports. Romania is an interesting country for studying the effect of FDI on manufacturing firms for at least three reasons, according to the EBRD study. First, manufacturing plays a relatively large role in the Romanian economy. In fact, the share of manufacturing value added in Romania’s GDP is at 30 percent, the largest in the European Union. Secondly, Romania joined the EU in 2007, and its entry was accompanied by the highest inflows of FDI in the country’s modern history. The FDI-export linkage shows that investment promotion leads to more inflows of FDI in Romania
B
The third reason for Romania being an interesting case study is that with the GDP
ased on a panel of Romanian firms
disconnected from each other, and this is
per capita (adjusted for the purchasing power
with more than 20 employees,
something that must change in order for the
parity) at only 36 percent of the EU average,
matched with detailed customs
country to come up with long-term objec-
there is large potential for it to improve its
data, the study suggests that FDI inflows can
tives and keep them in sight,” said Ramona
manufacturing performance.
stimulate domestic firms to upgrade the qual-
Jurubita, the President of the Foreign Inves-
As investment promotion leads to higher
ity of their exports. Basically, the FDI-export
tors Council (FIC), during Business Review’s
FDI inflows, based on the conclusions of the
linkage shows that investment promotion
Foreign Investors Summit.
EBRD paper, we can argue that the infor-
leads to more inflows of FDI in Romania,
The pace of growth is similar for exports
mation on the sectors targeted by national
which in turn allows the country to upgrade
as compared to FDI evolution. Romania’s
agencies can be used to both attract new
its export basket.
exports of goods increased by 1.7 percent in
foreign investors as well as to foster the
the first ten months of last year to EUR 58.2
internationalisation of Romanian companies.
2018 amounted to EUR 81.1 billion, accord-
billion, according to the National Institute of
Consequently, the government should take
ing to data released by the National Bank
Statistics.
further marketing measures to present the
Overall, the FDI stock as of December 31,
investment climate, benefits and incentives
of Romania (BNR). Last year, the pace of growth slowed: FDI in Romania increased
FDI-EXPORT LINKAGE IN ROMANIA
available in Romania, and work to develop
by 1.1 percent year-on-year in the first ten
There are several reasons why foreign direct
investment promotion laws and programmes
months of 2019, to EUR 4.8 billion (USD 5.3
investments could contribute to the improve-
to increase its competitiveness in attracting
billion). “Foreign investors come to Romania,
ment of Romania’s export structure. First,
export-oriented investments. This approach
they stop to talk to us, but then they decide
products exported by multinationals may
to investment promotion first and foremost
to leave. We need to find ways to convince
have higher unit values due to multination-
includes the correlation of export incentive
them to stay in Romania. The private sector,
als’ superior technology and marketing
policies with those designed to attract foreign
the public sector and academia are entirely
techniques. Second, Romanian firms in the
investments.
www.business-review.eu Business Review | February 2020
22 ENERGY
Romania resumes the liberalisation of its energy market Gas and electricity prices for households, which had remained on the regulated market, will be gradually liberalised in 2020 following a troubled period generated by emergency ordinance (OUG) 114/2018. But the bad effects may prove difficult to overcome. By Sorin Melenciuc
In 2018, Romania was still an electricity exporter
F
rom July 1, the current price cap
most stable and profitable energy producers
said. But the effect was much wider as it cre-
for gas sold to households will be
in Romania, Hidroelectrica and Nuclearelec-
ated a proxy behaviour: with regulated prices
removed, and electricity prices will be
trica, which produce the cheapest electricity
being kept artificially low, electricity produc-
in the system. At the same time, the new rule
ers asked higher prices on the free market.
fully liberalised as of January 1, 2021.
had some beneficiaries as well: the electricity
“By forcing the producers to sell electricity
DISRUPTIVE REGULATORY EFFECT
distributors on the local market.
and natural gas to households at a low price,
Prices were re-regulated last year through
“Producers were among the losers, and the
a quantity of electricity and natural gas was
OUG 114/2018, but the new government has
measure plagued them, because they were
removed from the market, and less electric-
decided to cancel the rules introduced by its
forced to sell electricity and natural gas at
ity and natural gas remained for Romanian
predecessors. OUG 114 imposed a special tax
lower prices to domestic consumers. For
industrial consumers,” the minister argued.
of 2 percent on turnover, capped the final gas
distributors, however, it was a beneficial mea-
Last year, Romania’s electricity prices hit
price at RON 68/MWh and limited electric-
sure, because lowering the producer’s price
record highs of over EUR 150/ MWh in some
ity producers’ profit margin at 5 percent
and maintaining prices for households at the
periods – and these prices have had an impact
for energy supplied to households. On the
same level increased the distributors’ profits,”
on local businesses. In the first 11 months of
electricity market, the measure mainly hit the
Economy minister Virgil Popescu recently
2019, Romanian firms significantly cut down
www.business-review.eu Business Review | February May 2016 2020
COVERENERGY STORY 23 14
their electricity consumption, possibly owing
from Russia almost doubled during the first
The European Green Deal - the Sustain-
to the higher prices on the market due to
11 months of 2019, up to 1.86 million tonnes
able Europe Investment Plan - presented in
output disturbances and rising costly imports.
of oil equivalent (toe), a record high of the
December 2019 will mobilise public invest-
Official data show that local companies cut
last few years. At the same time, local output
ment and help unlock private funds through
their consumption of electricity by 5.9 per-
declined by 2.7 percent to 7.37 million toe, a
EU financial instruments, notably InvestEU,
cent in January-November 2019, to 38.8 TWh,
trend that increased Romania’s reliance on
which would lead to at least EUR 1 trillion of
while total national consumption declined by
gas imports from Russia.
investments. Deal poses huge challenges, but may also
rose by 11.8 percent in the same period, and
THE LONG RECOVERY OF THE ENERGY SECTOR
household electricity consumption surged by
The new liberal government has already can-
energy sector is currently dominated by large
22.5 percent mainly due to harsher weather
celled most of the measures imposed through
state-owned enterprises, which control out-
during the first months of last year and higher
OUG 114/2018, but the re-liberalisation of
put and transmission, and international util-
consumption during the summer months –
energy markets will be introduced gradually.
ity groups, which control distribution. Free
also stimulated by low prices. OUG 114 was
The government has decided that the current
prices coupled with green energy-oriented
imposed despite the fact that Romanian
price cap for gas sold to households will be
policies could boost the development of new
households still paid low prices for electric-
removed from July 1, and from January 1, 2021
businesses in the sector.
ity. According to the latest official data, local
electricity prices will be fully liberalised. But
homes paid the fifth lowest electricity bills of
the government is also trying to avoid a sig-
nated by public and large international com-
the 28 European Union member states.
nificant effect on voters’ bills in a complicated
panies, with few local entrepreneurs having
For the Romanian energy sector, the Green
0.6 percent, to 50.6 TWh. By contrast, public lighting consumption
create a lot of opportunities. The country’s
“The Romanian energy sector is still domi-
electoral year, as two
managed to develop
RELIANCE ON ENERGY IMPORTS
rounds of elections
their businesses in
But OUG 114 has had another major impact
are scheduled for
this field. Entrepre-
on Romania’s ability to cover its electricity
2020.
neurs would benefit
needs.
“I am sure that
tremendously from
the price of gas will
supportive public
exporter in the region as its Communist-built
not increase from
policies and, ulti-
power supply industry was large and diversi-
July 1. You can’t be
mately, the entire
fied. But the situation changed dramatically
100 percent certain,
local energy sector
last year due to regulatory changes coupled
but I can tell you for
would gain in the
with a lack of investment and poor manage-
sure that they have
ment. In 2018, Romania was still an electricity
no reason to increase the price of natural gas.
Nicolescu, energy and resources industry
exporter, but the exports amount was much
(...) Selling gas from the storage facilities,
leader at Deloitte Romania, told BR.
lower than it had been in previous years.
through extraction, means there will be a lot
Romania had long been an electricity
long term,” Razvan
The use of electricity for transport is set to
But in the first 11 months of last year the
of gas offered in the market which will lead
become a booming industry over the next few
country became a net importer, left to rely on
to lower prices; it is logical if you have a free
decades in the EU, including Romania, which
large imports to provide the power needed
market. If you have a tight market, the supply
could also spark a generation of new startups
by its businesses and households. Accord-
and demand rules no longer function,” minis-
in this field. According to a recent forecast,
ing to official data, Romania imported 4.4
ter Virgil Popescu estimates. But the switch in
electricity consumption in the EU’s transport
billion kWh over January-November 2019
energy policy could bring some good news in
sector will grow by around 700 percent over
and exported only 3.1 billion kWh, taking
the future. Returning to free prices and a free
2017-2040. Experts say that Romania tradi-
the country’s electricity balance into the red.
energy market could boost investment in the
tionally has its strengths in the energy sector,
Electricity exports dropped by 39.5 percent in
sector as Romania still has energy resources
not only by being the richest in the region in
the first 11 months of 2019, while imports rose
to exploit and a large energy industry.
oil and gas, but also taking into account its hydroelectric output and the fact that new re-
by 82.5 percent. This reliance on imports was due to a
newable energy projects have emerged lately,
slump in power output, which saw a 7.9 per-
EU’S GREEN DEAL: CHALLENGES AND OPPORTUNITIES
cent decline compared to January-November
This price liberalisation in Romania comes at
2018, associated with a slight decline in
a moment when the European Union has set
than for those in some other CEE countries
consumption, of 0.6 percent, during the same
a target to become the world’s first climate-
to tap into this potential by partnering with
period. But the situation remains tense as
neutral bloc by 2050. This requires significant
larger energy companies or simply offering
Romania continues to rely on imports to cover
investment from both the EU and the national
their technology solutions to those compa-
its electricity needs. In the gas sector, imports
authorities, as well as the private sector.
nies, according to experts.
in both wind and solar energy. It is therefore easier for Romanian startups
www.business-review.eu Business Review | February 2020
24 ENTREPRENEURSHIP
Hot industries for local startup investors in 2020 Investment activity in Romanian startups will remain strong in 2020, with tech entrepreneurs set to remain in the spotlight, while at the European level venture capital deals exceeded over EUR 25 billion in the first nine months of 2019. By Ovidiu Posirca investors. “2020 will be another huge year for the development of the startup scene. The chances of witnessing the rise of new unicorns are quite high when looking at the advancement of FintechOS or TypingDNA, two companies which we’ve also supported significantly,” Cristian Dascalu, partner at Gapminder and Techcelerator co-founder, told BR. The local entrepreneurial ecosystem has developed significantly in less than a decade. Just back in 2013, there was a “stigma” around the term entrepreneur, says Andreea Moldoveanu, executive manager of Innovation Labs, an organisation which was founded that year. She says this perception was strong among young people because they were not aware of what an entrepreneur actually did and how this could be turned into a real profession. “Back in those days funding was harder to Business sectors that will remain attractive for investments this year are retail, IT/technology and services
A
obtain and people were less open to experiencing failure, both as founders as well as investors. Over the last few years the com-
round EUR 1 billion was invested in
infrastructure. The funding round was led
munity has learned from each individual’s
startups across Central and Eastern
by Digital East Fund with the participation of
experience and has grown in knowledge as
Europe (CEE) in 2019, according to a
current investors GapMinder and Launchub
well as in confidence and openness towards
report by How to Web. Locally, several fund-
Ventures. Elsewhere, TypingDNA, a Roma-
taking new opportunities and crossing bor-
ing deals in the millions and tens of millions
nian behavioral-biometrics startup, raised a
ders,” Moldoveanu told BR.
of euros were closed.
USD 7 million Series A round led by Gradient
“The Romanian startup ecosystem has
Ventures, Google’s AI-focused venture fund,
grown a lot in the past couple of years, which
with the participation of GapMinder Ventures
HOT INDUSTRIES FOR INVESTMENTS IN 2020
is a sign of maturity and stability. Also, more
and Techstars Ventures, as well as other prior
The most exciting sector for startups this
venture funds have been developed and angels are always looking to meet young entrepreneurs with exciting startup ideas,” Andrei Avadanei, the CEO of Bit Sentinel, a cyber security company, told BR. Two significant investment deals were carried out on the market at the end of 2019. Local tech startup FintechOS raised USD 14 million to develop its platform that helps financial companies to upgrade their
www.business-review.eu Business Review | February May 2016 2020
ENTREPRENEURSHIP COVER STORY 14 25
Andrei Avadanei, Bit Sentinel
Cristian Dascalu, GapMinder
year will be Artificial Intelligence as Romania
sible deals in Romania following the meteoric
billion in 2019, exceeding the previous year’s
follows the global trend, suggested Dascalu
rise of UiPath, which reached a valuation of
result by almost EUR 5 billion, according to a
of Gapminder. Financial technology, eHealth
USD 7 billion last spring.
report by PitchBook. Last year’s performance
and cybersecurity will also record strong growth. Avadanei of Bit Sentinel also sees funding
“The replication of the UiPath model,
Ionut Sas, PwC Romania
was driven by Klarna, Europe’s highest
which became the first unicorn with Roma-
valued VC-backed company, which raised its
nian roots, is difficult, and I think it first de-
biggest round of EUR 411.2 million.
potential for startups doing infosec, machine
pends on how Romanian start-ups will man-
learning, AI and Big Data. He adds that cyber-
age to bring innovation and become visible to
billion-euro valuations remain in the ecosys-
security and fintechs hold a leading spot on
attract investors’ interest, as well as how they
tem, deals of this magnitude will continue to
the local entrepreneurial market.
will be able to scale their sales and footprint
be the norm,” the report says. Across Europe,
fast to a global level. They have to work hard
the average VC funding deal for startups went
Business sectors that will remain attractive for investments this year are retail, IT/technology and services, said
and have a certain share of luck, coupled with inspiration and a
Ionut Sas, partner at profes-
great scaling team and strong
sional services firm PwC Ro-
business partners,” Sas told
“We think that while unicorns with multi-
close to EUR 2.5 million. Meanwhile, investors in Europe and the US are working with founders to build a profitable path for startups.
mania. The AI field is set to
BR. He predicts that the IT
“Investors are willing to pay for a bit more
record a massive increase in
sector is likely to generate
certainty on profitability and a bit more real-
investments in the follow-
the next unicorn startup.
ity around growth,” said Evan Damast, global
ing years, with AI experts being in high demand across the world. Spending on AI systems will reach USD 97.9 billion by 2023, compared to USD 37.5 billion in 2019, according to a report by International Data Corporation (IDC). The global industry’s annual growth rate between 2018 and 2023 will stand at 28.4 percent. “We expect Romania to follow this growth trend even at a higher rate,” says the Gapminder partner. The big question on investors’ and founders’ minds is which industry will generate the next unicorn, meaning a startup that reaches a valuation of at least USD 1 bil-
In the medium term, we might see more investments in startups, especially in the
head of equity and fixed-income syndicate at Morgan Stanley, according to the Wall Street Journal. As some of the unicorn startups went
tech field, carried out by multina-
public in the US in 2019, results have been
tional and mature entrepreneurial com-
mixed. Ride-sharing players Uber and Lyft
panies, predicts the PwC Romania partner. “The presumption of soon having a new Romanian unicorn sits on very healthy ground, as we, as a community, have built a ‘playground’ where all the relevant stakeholders (founders, mentors, angel
are among the nine companies that raised over USD 1 billion from going public and their shares are trading more than 30 percent below their initial public offering (IPO) prices. By contrast, companies that recorded small losses or were slightly profitable saw an increase in their share prices following their
investors, venture capital)
IPOs. For instance, shares of Zoom Video
are coming together and
Communications, a videoconferencing plat-
supporting each other to
form provider, saw an 80 percent surge in its
create strong businesses
shares.
out of enthusiastic ideas,” adds Moldoveanu of Innovation Labs.
lion. UiPath, the robot process automa-
For 2020, all eyes will be on Airbnb, which could go public although it hasn’t turned a profit yet. Its progress on the stock exchange could also be a litmus test for investors’
tion (RPA) pioneer with Romanian founders,
EUROPE VC ACTIVITY REMAINS STRONG
expectations, which could also be reflected
was the first to reach this milestone.
Deal-making on the European venture capital
to some extent in the further development of
market was set to reach north of EUR 30
the local entrepreneurial sector.
Sas says that investors are looking at pos-
www.business-review.eu Business Review | February 2020
26 ENTREPRENEURSHIP
Startups competing for talent in tight labour market With an unemployment rate standing at less than 2 percent in Romania’s largest cities, entrepreneurs are facing major challenges in recruiting the right employees. While large companies can provide a generous benefit package and comfortable offices, what startups are bringing to the table are flexible work schemes, fast-paced environments and hopes that some of the initial employees will become rich if they stick around long enough for the company to go big. By Ovidiu Posirca
It is very difficult for startups to attract young professionals or seniors
T
he labour market in Bucharest has
dize the future of their firm. “For startups,
not match,” Dan Puica, the CEO of jobs portal
overheated, with the unemployment
competing with large employers in attracting
BestJobs, told BR.
rate having dropped to 1.29 percent
talents is definitely challenging. Large com-
as of November 2019, according to data from
panies generally have the recruiting power,
the Labour Ministry. The Romanian capital
employee benefits, employer branding strate-
FROM STARTUP TO CORPORATION OR THE OTHER WAY AROUND
generates 25 percent of the country’s annual
gies and employee motivation initiatives to
Although startups and large employers are
GDP and hosts the headquarters of some of
make themselves very attractive for skilled
targeting roughly the same talent pool, the
the largest entrepreneurial companies and
workers. But what startups lack in terms of
real differentiator might be the capacity of
multinationals.
size and value proposition they make up
skilled candidates to show how they can
through flexibility and a way of working that
make a difference in the company, regardless
startups, there is little room for mistakes as
is better adapted to the new generations of
of its size, says the head of BestJobs.
a string of recruitment errors could jeopar-
employees that larger companies simply can-
For founders looking to grow their
“Because today’s talents want to align
www.business-review.eu Business Review | February May 2016 2020
ENTREPRENEURSHIP COVER STORY 14 27
themselves to companies with strong cul-
aligned with their beliefs, something which
personal accomplishment of being part of a
tures and values that resemble their own,”
they are more likely to obtain in a startup,”
successful and healthy journey,” says Dascalu
says Puica.
says the Gapminder partner.
of Gapminder.
Young employees might work at a startup
Some say that the “know-who” and the
Large companies are trying to mirror the
and move to a corporation, while experi-
“know-how” in an industry are crucial for
workflows of startups in a bid to harness
enced specialists that have worked in large
employees who want to start their own busi-
innovative ideas. In addition, some corpora-
ness. “I always say that in order to convince talents
employees’ creativity and leadership skills,
to be willing to
and help them grow within the organisation.
listen and look
As part of the same community, startups and
beyond the
corporations can have a mutual understand-
job to see the
ing on what motivates that community:
bigger picture
the power that brings people together in a
and be active
startup, fired up by the desire to combine
in a company
different skills to solve a problem. To see a
Avadanei, CEO of cybersecurity company Bit
tern, and each person’s personal and profes-
Sentinel, told BR. In the tech field, the competition for
“For many young people, the startup is
skilled workers is particularly fierce. The high
the way to learn what you need to know in
demand for talent has also driven an increase
order to be able to work in a corporation.
of the labour market. Some 160,000 people
Startups provide young people with knowl-
were employed in the ICT field in 2015, and
edge, flexibility and the chance to develop
by 2018 it had soared to over 190,000, ac-
ideas in their areas of interest. But they don’t
cording to Eurostat, the statistics office of the
necessarily provide structure, and in many
European Union. Companies in the technol-
cases they lack financial power. At the same
ogy field are continuing their recruitment
time, the lack of structure is also a positive
efforts, which in turn have led to an increase
factor for those who are self-motivated and
in wages. By November 2019, employees in
more interested in making their mark on
the technology sector had a net average wage
the world,” says Cristian Dascalu, partner at
of RON 7,610 (close to EUR 1,600) per month,
Gapminder and Techcelerator co-founder.
making them the best-paid in the entire
Gapminder is a venture capital fund that has
economy, according to the National Institute
made early stage investments in dozens of
of Statistics. Meanwhile, startups that can speak more about their projects and the work environ-
difficult” for startups to attract young profes-
ment could become more attractive for new
sionals or seniors. This doesn’t mean that
employees.
entrepreneurs can’t fill the ranks in their startups. “On the other hand, seniors may be at-
“Furthermore, corporations with an
team, they need
their own businesses. There is no clear pat-
Nonetheless, Dascalu says that it is “very
ideas, just like conventional VC players. intrapreneurial culture can benefit from their
where they can make a difference,” Marius
Romanian startups.
funds and making risky investments in new
to join your
companies for decades could choose to open
sional expectations could play decisive roles.
tions are operating their own venture capital
“And CEOs should not forget to present their ideas and projects to people. For example, in the tech sector, where the
tracted by startups especially due to these
salary is no longer a distinguishing feature,
reasons: flexibility and the chance to do
people leave or choose companies due to the
need and fill it, which is, ultimately, the heart
things in a faster and more ingenious way
projects in which they are involved or to the
of the matter in entrepreneurship,” Andreea
than they could in the corporation where
programming languages they have to learn
Moldoveanu, executive manager of Innova-
they previously worked. After 10-15-20 years
or use. We are in an era when people are
tion Labs, told BR.
in corporations, senior employees want to
increasingly seeking learning opportunities
still have a career but, at the same time, they
rather than high salaries. Because learn-
need the perception of ‘freedom’. They want
ing new things can lead to a better career
STARTUPS WINNING THE RECRUITMENT CHALLENGE
to have a bigger sense in life and be better
and a higher income, and ultimately, to the
Local food delivery platform Petisante
www.business-review.eu Business Review | February 2020
28 ENTREPRENEURSHIP
launched at the end of 2019, following an
keep employees interested,” Toanchina told
so periodically we upgrade the benefits pack-
initial investment of EUR 500,000. The
BR. He says that removing caps on earnings is
age for all employees,” the manager told BR.
company has 15 employees working in its dis-
one way of having efficient employees.
Elsewhere, ContentSpeed, the provider of an eCommerce platform for online stores, is
tribution, cooking, marketing, and call center
MOTIVATING EMPLOYEES
looking to hire more consultants this year to
Vitacom Electronics has around 100 employ-
implement the company’s technical solution
Bucharest, one of the recruitment criteria
ees and carries out yearly surveys to gauge
for more customers. Currently, the company
was proximity to the workplace. So we
employee satisfaction and to design its pro-
has around 30 employees.
looked for people living nearby, because they
motion strategy. Avi-
have a stronger desire to work with us, but
va Vita, the Roma-
stantly recruiting
we are glad if a person living further away
nian company’s PR &
and we have our
chooses to work with us,” Mihai Irimia, the
Marketing manager,
own HR specialist.
founder of Petisante, told BR. Until now,
says that the flexible
We are now moving
the company has used online recruitment
work schedules and
to a bigger HQ with
platforms to post jobs, but Irimia says that he
the various internal
all kinds of facili-
might hire a person through a recommenda-
events designed to
ties that are popular
tion as well.
consolidate teams
among the young.
departments. “Given that our location is at the edge of
“We are con-
are things that
In addition, we
working with in the kitchen and I am glad
motivate the staff.
have a core group of
that I could find specialists in Romania, with-
Furthermore, the
managers and senior
out needing to recruit people from abroad,”
firm is also providing other perks, such as
programmers who have been with us for
says the founder.
private medical packages and private pen-
years,” Dragos Vilceanu, business develop-
Elsewhere, Cristian Toanchina, the
sion schemes. The company has been able to
ment manager at ContentSpeed, told BR. The
co-founder of on-demand laundry service
maintain a stable headcount in the past year.
company is investing in training programmes
Drop&Go, says the startup launched with
“We also try each year to keep the level of
and new technologies to keep employees
five employees. “Our plan is to have a salary
pay in line with the evolution in the areas in
motivated and maintain a competitive edge
system that is based on performance, so as to
which we operate, through various studies,
on the market.
“I have already formed the team I am
www.business-review.eu Business Review | February 2020
30 SOFTWARE
Looking for a new job opportunity? Software industry has you covered The software industry ranks first in Romania in terms of top job opportunities, leaving behind sectors like sales and banking. So if you’re young and you want to choose a career path, software development would be your best bet. By Aurel Constantin Oracle or IBM. According to a 2019 analysis by KeysFin, the total turnover of companies controlled by US investors was around EUR 1.4 billion in 2017, and the IT industry represented about 30 percent of the total. But Romania also has some local companies that have made it to the international market, like UiPath, BitDefender or SoftVision. In terms of local activity, the cities with the most IT employees are Bucharest, Iasi, and Cluj. This ranking reflects the locations chosen by the American giants: Microsoft in Bucharest or Amazon in Iasi. The increase in the number of IT employees in Iasi is also due to the fact that the schools in the city produce between 2,500 and 3,000 computer science specialists every year.
IT SALARIES ARE STABLE Today, Romania hosts many international IT giants, like Microsoft, Amazon, Adobe, Oracle or IBM
Romania is one of the most active IT hubs in Europe, with a rapid growth rate. This has led to the emergence of a major shortage of
F
a career change, the IT field might be
growth - in 2019, it exceeded the EUR 5 bil-
career opportunities, where the employee has
what you are looking for. The growth
lion threshold (five times its 2003 value and
the upper-hand over their employer.
the industry has experienced in recent years
double compared to 2013). Its growth rate hit
makes it very welcoming to those who want
14.3 percent in 2019 compared to 2018, and
nia are predominantly earned in this industry;
to start over in a new job. There are several
its contribution to Romania’s GDP reached 6
the net nominal average income increases
programmes trying to solve the IT industry’s
percent (versus 0.5 percent in 2003).
with every month that passes. While in Feb-
urthermore, in case you’re thinking of
workforce shortage, including Codecool, a school for programmers.
specialists on the local market. This has creRomania’s IT industry has seen enormous
Today, Romania hosts many international IT giants, like Microsoft, Amazon, Adobe,
ated new tempting, varied and highly secure
In this context, the highest wages in Roma-
ruary 2019, the average salary in IT was RON 6,683, by May 2019 it had gone up to RON
www.business-review.eu Business Review | February May 2016 2020
COVER SOFTWARE STORY 31 14
6,946, according to the National Institute of
current state of the IT employment market,
The good news is that IT has become very ac-
Statistics.
Codecool IT school partnered up with recruit-
cessible. Today, you can learn programming
ment agency Brainspotting to interview 47 IT
from scratch even if you don’t have a college
for people who are familiar with the most
companies and identify the main challenges
degree. It is enough to be passionate, to want
popular programming languages: full-stack,
they face in the recruitment process.
to learn to code and to spend enough time
Companies are constantly on the lookout
Front-End, Java or Python developers, as well as IT and Big Data security special-
First, the academic environment does not provide enough IT graduates: the universities’ coverage is well
ists or software engineers.
below demand: the 5 poly-
For a junior full-stack
technic universities, 59
developer, the salary
state universities and
starts from RON 3,500,
on it. Encouraging professional reconversion through various strategies seems to be a solution to the deficit. This is why IT schools are working in partnership with IT companies to train professionals in the field. People with different professional experience
but most salaries are
174 private universi-
(from construction or telecommunications
between RON 3,770
ties offering techni-
engineers to journalists or political science
and 7,000, a range
cal courses produce
graduates) enhance the stability of a team, as
also confirmed by
approximately 9,500
already confirmed by some employers who
Brainspotting reports
graduates annu-
took part in the study. “There are hundreds
ally, compared to the
in recent years. A mid-
market’s need of over
level full-stack devel-
15,000. Second, many
oper can reach a paycheck
Romanians are still choosing
of RON 9,910 – 13,700, while
to work abroad: according to the
a senior takes home over RON 14,630.
study’s estimates, 37,031 IT specialists
of companies around the world already doing this, as well as private programming schools that can provide support. Codecool has helped Vodafone, ThyssenKrupp, Morgan Stanley, Emarsys, CapGemini, and Evosoft find the right employees. Vocation is a very
have left Romania to work abroad. The num-
important motivation in the IT field, and it is
developers are similar, between EUR 650
ber is large enough to cover almost 80 percent
worth paying attention to those who want a
and 1,300 for a junior with less than 2 years’
of the talent shortage expected for the next
career change,” says Claudia Tamasi, Country
experience (average wage is EUR 870). For a
three years.
Manager at Codecool Romania.
The incomes of front-end and back-end
mid-level developer, with 2-4 years of experi-
Last, the IT specialists we have should im-
Choosing a good IT school can help you
ence, the wage is between EUR 1,250 and 2,580 (average salary is EUR 1,720), while for a senior developer, with over 4 years of experience, the paycheck can be between EUR 1,800 and 4,300 (average of EUR 2,260). Java programmers take home a monthly average wage of RON 7,072, according to the Paylab salary comparison tool, while the average monthly net salary for a PHP programmer is RON 5,546. The average wage for a Python programmer is RON 6,470, and a C ++ programmer can earn a net monthly of RON 6,973.
prove their technical skills: the study showed
learn programming and get an entry-level job
that 63 percent of companies are dealing with
in less than a year. Bear in mind that the spe-
DEMAND FOR DEVELOPERS IS GREATER THAN EVER
low talent quality - it seems that Romanian IT
cialists say that the one-year achievement is
specialists do not yet have the level of experi-
only possible if you are truly committed and
The upper-hand the employees have over
ence required to take on complex projects.
constantly attend courses, for at least 6 hours a day - just like going to work. The good part
their employers is due to the fact that the IT industry is lacking more than 15,400 professionals per year. To better diagnose the
LEARN PROGRAMMING FROM SCRATCH IN ONE YEAR
is that you may find a job before you even finish the course.
www.business-review.eu Business Review | February 2020
32 FINTECH
In search of the next unicorn: digital services for the financial industry Teodor Blidarus and Sergiu Negut founded startup FintechOS in 2017. Two years and three months later, they’ve managed to close a USD 14 million financing round, which raises the question: will FintechOS be the next Romanian unicorn? By Aurel Constantin
T
he Series A financing round was led by EarlyBird’s Digital East Fund and OTP Ventures. Previous investors
GapMinder and Launchub Ventures also participated in the round. The previous round took place in May 2019, and it was worth EUR 1.1 million. GapMinder, Launchub Ventures, Gecad Ventures and other private investors took part. FintechOS is making history in the digitalization of the financial industry. It has developed a platform that works like an operating system and allows banks, insurance companies or any other financial institutions to rapidly create digital apps and services. The idea for the product belonged to Teodor Blidarus. ”He had this vision that all the clients want the same thing at the same time. A certain way of structuring data, a certain type of process,” said Sergiu Negut, the cofounder of FintechOS, in a discussion with Business Review. Blidarus knew that companies in the financial industry would have to create new services and products for their customers, the same way that fintechs like Revolut did, and were hugely successful. He wanted a technology that would allow these companies to build the products exactly the way they wanted, but in a much shorter time than it would take if they were building them independently. ”At some point it became clear to Teodor that this technology had to be done from scratch and had to be a world class product built by a world class team,” says Negut. This is where his role came into play: making sure that the business plan was carried out and allowing Teodor Blidarus to build the platform. The company started with an initial investment of about EUR 500,000, of which EUR 200,000 came from Sergiu Negut.
www.business-review.eu Business Review | February May 2016 2020
COVER FINTECH STORY 33 14
the seed stage you have to prove that you
has to go and pitch to every single investor to
the company’s growth occurring with huge
have recurring revenues, that you can sell to
convince them that the investment is viable.
steps, and not organically. Considering that
some clients, and that the business model
”It is a lot of work. At the end of the day we
they had a revolutionary product with a des-
works,” Negut explains.
talked to over 60 funds, then over 10 funds
Ever since the beginning, they envisioned
ignated market, they decided not to go step-
Afterwards, the company must show that
wanted to continue, and from that pool we
by-step and invest 20 percent of the profit, as
there is an alignment between its product
were able to choose the best suited investors
it is traditionally done, but by investing 200
and the clients, a so-called product market
for our business,” adds Negut, who carried
percent of the revenues. Which is possible
fit. Series A round investors also need to see
out most of the discussions by himself, while Blidarus focused on the product.
THE DIGITAL CHANGE The FintechOS technology allows banks and traditional insurance companies to keep up with their customers’ ever-changing expectations and also with the speed, agility, and flexibility of fintechs, companies whose business models are based on innovative technologies. when you get investment funds to finance your idea. ”This way, you have the money to hire the best people on the market
good leadership in the company, with the ability to form a team around it. These are the steps that need to be taken at
With the help of FintechOS technology and expertise, banks and insurance companies can launch hyper-personalized, fully digital products and services based on com-
and invest in the product,
the global level. When the
plex data sources, at unprecedented speed
which is a very difficult job
company is from Eastern
- in weeks instead of months or even years.
Europe, it needs to do
The implementation of FintechOS technol-
even more to convince
ogy can be done as Software-as-a-Service:
for a startup,” Negut says. They made sure from the start that the product would be attractive for venture capital funds: a model that is not very common in Romania, since venture capital is scarce. Usually, any startup begins with the 3F money (family, friends, fools), and after a few months they look for an accelerator, a business angel or a combination of those two in order to get their pre-seed money. “At
venture funds. A Romanian startup needs to demonstrate that it can go global before entering a Series A round. This is why FintechOS went abroad in search
the company helps clients in the process of migrating to the cloud, but also locally (onpremise), and the platform easily integrates with existing tech infrastructure. FintechOS offers its customers the oppor-
of clients. With previous investments,
tunity to use data from over 150 integrated
they’ve managed to open offices in cities
sources (from social networks, contextual
like London, Vienna, Copenhagen, Amsterdam or Warsaw and have clients in countries like the UK and Germany. They
information, cloud systems and enterprise solutions), as well as 20 automated financial processes (based on artificial intelligence, such as KYC - Know Your Customer),
this stage, the startup must
needed an international
Customer 360, prices, risk analysis, etc.).
have a minimum viable
footprint to prove that
FintechOS also offers a marketplace with
product,” Negut notes. In
they were able to maintain
over 50 open source applications created to
its first months, FintechOS
the growth.
facilitate the use of technology in customer
managed to get a total of around EUR 1 million (including the investment made by the founders) in pre-seed money.
Another very important step in convincing investors is showing multiple hundred percent growth every year. ”And after
onboarding processes, credit, savings, insurance or pensions. Furthermore, strategic partnerships with large companies such as Microsoft, EY, Deloitte, Publicis Sapient and
the growth in 2018, we will close 2019 with
CapGemini allow the company’s technology
2018, FintechOS got a seed finance round
close to 500 percent growth,” says Negut. Af-
to be introduced and adopted more quickly
from GapMinder, worth EUR 0.6 million. “At
ter all the boxes are ticked, the company still
on many markets.
One year after starting out, in November
www.business-review.eu Business Review | February 2020
34 FINTECH
”We are helping companies in the finan-
more mature adult generation, who may
rope, most likely in South-East Asia and the
cial industry digitize their services, in order
have a mortgage, a credit line, a pension
US. “We also need commercial development,
to be as fast and versatile as fintechs. The
fund and so on, will ask for more services to
in branding and market studies – all the
companies are building the new products
suit their needs. Banks’ most potent clients
things you need when entering a new mar-
on their own, but everything is ten times
want digital products and the banks will
ket,” says Negut. There are differences in the
faster when they’re using our platform. They
have to provide these services. “The demand
ways in which FintechOS finds clients in East-
don’t have to write the code all over again to
is not fully there yet, but we are already of-
ern Europe versus the more mature markets.
develop the product,” says Negut.
fering things that respond to it. What we’re
In our region, the clients who know about the
seeing today is an amazingly rapid adoption
company usually ask for its services, while
and the success of fintechs like Revolut or
of digital products after they are released.
in the UK or other western countries the
Monese are based on the ways in which they
So the question is not whether digitaliza-
company must reach out to clients through
offer services to people. And these services
tion will occur, but how fast it will happen,”
conferences or meetings in order to present
do nothing more than allow you to pay for
Negut argues.
the services they offer. “Last but not least,
Last fall, they launched FintechOS 20, a completely new platform that provides a new way of structuring data. At the same time, they launched the app store, where companies can find ready-made apps.
CUSTOMER-DRIVEN CHANGE The success of FintechOS’s platform stems from the fact that banks and other financial organisations are being forced to develop new ways of interacting with their customers. The birth
goods and transfer money. But customers
What we shall see in the future is “robust
we want to have a business that is convincing
see the technology and they ask for it, so
personalisation,” which means that there will
enough to be able to raise a Series B in the
the banks must be able to at least replicate
be products and services made for individu-
next 12 months that will be much larger than
those services. ”It’s the customers that drive
als and their needs. And not just in banking,
the funding we just got,” says Negut. Last
the technology,” says Negut. And it is not
but in insurance and investment as well.
year, FintechOS recorded revenues of about EUR 5 million, and this year it should triple
something that can be done over time, from scratch; it needs to be done fast. ”Moreover,
THE FINANCING ROUND The money the company received at the
that number in order to meet investors’ requirements. The company was valued
end of 2019 will
at around USD 50 million
go into research
after its latest financing
and develop-
round. If it manages to
ment and
triple its revenues, the
enhancing its
valuation will go up to
international
USD 150-200 million by
footprint. First, it will expand its presence in Europe. Today, Finte-
the end of the year. This means that the unicorn status is not that far away, even if the founders are not thinking about that. What’s more
digital products have a limited lifespan, so
chOS has around 90 employees in
companies will need the tools to quickly de-
Bucharest, where the research and develop-
important is developing the product to the
velop the next generation,” Negut explains.
ment department is based, and another 60
point where many financial institutions
in Europe, most of them in London. The
around the world are using the platform.
digital products that need to be developed.
European team will grow in order to keep up
“Success is being at the right place, with the
Demand will come from customers, but not
the sales.
right thing, at the right time. I hope we’ve
The future holds a great deal of new
the younger ones like Generation Z. The
Another step is expanding outside Eu-
covered all that,” Sergiu Negut concludes.
www.business-review.eu Business Review | February May 2016 2020
COVER FITNESS STORY 35 14
Bucharest fitness market: competitive and fragmented Studies show that 50 percent of the people who sign up at a regular fitness gym, where they work out by themselves, give up within the first three months. Moreover, 20 percent of them never even use the subscription. Romania ranks second in Europe when it comes to sedentarism and third in terms of the share of overweight population. And the sedentary lifestyle can also be observed among business people. By Romanita Oprea some of the reasons why many companies choose to invest in physical activity and may even have their own gyms for employees. There are also companies asking the representatives of their favourite fitness centres to manage those in-house gyms or to organise motivational team buildings. Bodyshape Transformation Centre is located in the Aviatiei area of Bucharest. In 2018, hundreds of people reached their physical goals and shed over 1.5 tonnes of fat, through 45-minute workouts done three times a week. The centre is also known for its 6-Week Challenge, a programme built on three pillars: guided training, personalised nutrition and motivational coaching. But how competitive is the Romanian fitness market? In Irina Alionte’s opinion, it’s still in its infancy compared to those in more Revvolution - a place where people could get everything they need in order to attain their fitness objective
O
developed countries. Surely, there are fitness centres in every major city of the country, but the market itself is quite under-developed in general.
nly 15 percent of those who exercise
able to get involved in the well-being of the
by themselves at the gym succeed
business and be more productive. There are
in reaching their objectives, while
numerous benefits to exercise (gets us in
our population has a gym membership, as
the rest need the support of a trainer or group
shape, prevents the brain from aging, helps
compared to the 11 percent European aver-
classes, according to information shared with
the heart work better, gives us cleaner skin,
age, which suggests that there is still plenty
us by Bodyshape Transformation Centre
higher resistance to stress, better sleep, as
of room for growth and a lot of potential for
representatives. Irina Alionte, the founder
well as a higher desire to enjoy life, be hap-
providers to get more people to be active. The
of Bodyshape Transformation Centre, also
pier, more productive, and more motivated).
market potential and Romanians’ increasingly
explained why entrepreneurs can be more
Ultimately, you will live a longer and better
sedentary lifestyle can be attractive for those
successful if they engage in more physical
life,” explains Irina Alionte.
who are able to seize the business opportu-
activity, and why employees are healthier and more efficient when they exercise more often.
At the same time, there are also five
“Reports state that only 4 percent of
nity, so it’s no wonder that the number of
positive effects exercising can have on one’s
fitness clubs increases by approximately 10
business: higher ROI (return of investment)
percent annually, with new gyms opening up
not to get sick in order to be able to manage
and VOI (value of investment), fewer medi-
to the public,” said the Bodyshape representa-
your business full time. At the same time,
cal leave days, increased employee loyalty
tive. On the other hand, she points out, the
it’s very important that your employees are
towards the company, and stronger social
landscape is quite different when it comes to
healthy, happy and thankful in order to be
cohesion in teams or departments. These are
the fitness market in Bucharest, which has
“As an entrepreneur, it is really important
www.business-review.eu Business Review | February 2020
36 FITNESS
Valentin Vasile, owner and founder Revvolution
become increasingly competitive recently.
Irina Alionte, the founder of Bodyshape Transformation Centre
Irina Alionte adds that there are many
is science-based and has been confirmed by
people who are starting to pursue profes-
the results achieved by thousands of clients.
becoming more interested in maintaining a
sional reconversion to become fitness trainers
The first version of the programme was cre-
healthy lifestyle, eating well and working out.
or nutritionists and offer their services to
ated by Valentin Vasile in 2012 and it offered
They have started to understand the impor-
potential customers. But, in her opinion,
clients a 360-degree approach to nutrition
tance of a balanced lifestyle and the benefits
experience and tradition are very important
and exercise.
of nutrition and exercise in all aspects of their
when it comes to providing such services to
“Fortunately, Romanian people are
“Because we operate on a competitive
life. Of course, more interest from potential
the population. The more studying one does,
market, we try to bring the best to our cus-
customers leads to an increase in the number
the more prepared they will be to develop
tomers each year. In 2016 we moved to a big-
of gyms and fitness programmes – on one side
a personalised approach that will help their
ger space in central Bucharest, offering more
we have gym chains that are opening more
clients achieve results with no risks.
than 800 sqm of workout studios, changing
venues and on the other, we see new fitness
The Romanian fitness market is domi-
rooms and coaching spaces. We’ve gradually
programmes trying to gain a prominent place
nated by one big player which launched in
added new components to our programme
on the fitness market,” said Valentin Vasile,
2000 (World Class), with a strong presence
and now our customers can benefit from
owner and founder of Revvolution.
of 33 centres around the country and 60,000
the opinions of three nutritionists and eight
members, as well as several smaller, but well-
fitness trainers, a kinesiotherapist and an
positioned players.
endocrinologist. We also organise numerous
With more than 20 years of experience in the fitness industry, Valentin Vasile is a certified fitness trainer and sports nutri-
In this landscape, Bodyshape Transforma-
workshops for our customers – our purpose is
tion specialist who has helped thousands of
tion Centre was born 5 years ago, opening up
not only to help them lose weight, but to try
people get in shape and develop a healthy
a unique niche – the boutique fitness centre.
to teach them how to have a healthy lifestyle
lifestyle. He developed the Revvolution
During this time, Bodyshape has helped
and avoid potential health risks,” Valentin
programme more than 8 years ago, as a place
over 2,000 people to burn nearly 5 tonnes of
Vasile explains.
where people could get everything they
fat and lose 30,000 centimeters from their
needed in order to attain their fitness objec-
waistlines.
tives with a friendly approach. The idea came
Revvolution is a premium fitness pro-
So far, Revvolution’s biggest challenge has been educating the public that weight loss needs a healthy approach and it should not be
from his desire for more people to have access
gramme that offers integrated services for
about fad diets that can do more harm than
to a scientific approach to a healthy lifestyle,
customers – its members have access to work-
good. The company tries to publish a lot of
fitness and weight loss management, with the
outs, nutrition services, coaching and fitness,
quality content on its blog and social media
firm belief that healthy eating, exercise and
kinesitherapy or nutrition workshops, so
profiles and explain to people what healthy
permanent support and motivation are all
they can achieve a healthy lifestyle. Accord-
lifestyles, healthy workouts and healthy nu-
essential.
ing to its representatives, everything they do
trition are and why its trainers rely so much
www.business-review.eu Business Review | February May 2016 2020
on this 360-degree approach.
COVER FITNESS STORY 37 14
a gym membership in recent years and most
and we closed 2019 with EUR 480,000 in turn-
of them lived in big cities. We hope that the
over, which means our business has grown by
also adds that they have always been keen on
numbers grow, since it is easier to prevent
approximately 60 percent! In 2019 we man-
keeping the Bodyshapers community very
than to treat, and working out and eating
aged to grow our membership base at our flag-
closely connected. The community comprises
healthy can keep you safe from a lot of medi-
ship centre, but another part of the revenue
very vibrant, authentic, positive and open-
cal issues. It is a good thing that the govern-
growth is the fact that we have expanded
minded people who have decided to make the
ment understood the importance of this mar-
by opening a second centre in Bucharest –
most out of their lives on all levels – physi-
ket and lowered VAT for fitness services last
“Bodyshape Gym” – in partnership with the
cally, emotionally, socially, etc. “Our mission
year; more people
is to help busy, successful people - who are
working out means
not necessarily passionate about fitness - get
fewer people seeking
back into shape in the shortest time possible,
medical assistance,”
regain their confidence and feel proud of their
said Valentin Vasile.
results. Besides the group workouts guided by
Currently, 80
experienced trainers, our concept combines a
percent of Revvolu-
nutritional plan with coaching on motivation
tion’s customers
and mindset. Our community is made up of
are women and 20
75 percent women and 25 percent men. The
percent are men,
members of the Bodyshape Transformation
based in Bucharest,
Centre community are mainly young profes-
interested in having
sionals, managers, executive directors and
a healthy lifestyle
entrepreneurs, but also several well-known
or trying to achieve
celebrities. Most of them are busy people who
fitness/weight loss
juggle their careers, families and social lives,
goals.
An opinion shared by Alionte as well, who
as well as other responsibilities,” Alionte adds.
“Romanians are also known for
2020 EXPECTATIONS
caring about their physical appearance and
biggest employer in Romania, Group Renault.
“We expect that even more people will
wanting to look great all the time – so more
It was an honour to have been chosen as the
understand the importance of exercise and
and more of them are starting to work out
official fitness provider for such a respectable
good nutrition in their lives and come and try
in order to have a more athletic body. But
brand and innovative corporation, which de-
our fitness programme. We’ll also try to reach
those who were already into gyms are now
cided to offer its 3,000 employees the benefit
looking for a more person-
of experiencing Bodyshape workouts right
alised experience; they need
at their headquarters. This partnership helps
constant support in their
us double our impact, double the number of
journeys and they want
amazing transformations and kilograms lost
custom-made solutions for
for people in Bucharest, making us even more
their problems. And that’s
accessible to those who really need to achieve
exactly why we are here. Our
long-lasting results in a fun environment,”
turnover for 2018 was around
said Bodyshape’s owner.
EUR 500,000, slightly higher
2020 starts with a transaction on the mar-
in 2019, and we expect an
ket, as Florina Onetiu, the main shareholder
increase of at least 10 percent
of the Happiness centre (Centrul Fericirii),
in 2020,” added Revvolu-
the first integrative transformation centre in
tion’s owner.
Romania, announced the sale of the majority
Bodyshape Transforma-
stake to the FIT4YOU aesthetics and wellness
tion Centre’s 2020 plans
network. Opened in 2015, Centrul Fericirii
include the launch of a work-
brought a new concept to the Romanian
further markets through our online programs,
out programme for teenagers and one for stay
wellbeing market, which generated a turnover
designed for our customers outside of Bucha-
at-home moms, as well as another centre in
that placed it among the top companies in
rest, new mothers who cannot go to the gym
Bucharest. Both categories of customers will
this industry. For 2019, the company reported
but want to get back into shape or frequent
be invited to join tailored programs which will
a turnover of over RON 2 million, with over
travellers. Unfortunately, as previous studies
respond to their particular fitness needs.
10,000 clients and a net profitability of 20
have shown, only 6 percent of Romanians had
“In 2018 our turnover was EUR 305,000
percent.
www.business-review.eu Business Review | February 2020
38 SUSTAINABILITY
Sustainable solutions for waste management in Romania The costs faced by Romanian producers seeking to meet their targets for selective waste collection and recycling – a market valued at EUR 250 million per year – are experiencing an artificial increase due to the problems in the system, thinks Ionut Georgescu, CEO at FEPRA International, one of the main Organisations that Implement Extended Producer Responsibility (OIREPs) in Romania. By BR Team smells, air and groundwater pollution - in short, a danger to the environment and human health. Certain recyclable materials can pollute more than cars when they burn. Landfills around big cities like Bucharest, for example, have expanded and are now a real danger to inhabitants’ health, and they can no longer be ignored. In order for the recycling circuit to be properly tracked, the waste must be collected separately. Throwing them out together significantly complicates the separation process and increases its costs. Moreover, some recyclable materials can get contaminated and become impossible to recover. Recycled materials can become raw material for other materials and thus generate savings on electricity and water consumption. Waste can also be used as a raw material for energy production, for example in cement manufacturing. FEPRA has always promoted a functional system in which selective collection generates quality materials for recycling. That is why we are trying to develop an ecosystem by expanding our business in the collection and recycling areas.
How has the approach to waste management evolved at the European level?
logistic flows that follow manufacturing is a
Currently, waste management systems across
there has been a transition from the “polluter
the globe are based on the principle that the
pays” principle of towards manufacturers
Who should contribute to the successful management of waste?
polluter pays. The EU first transitioned from
taking responsibility for their packaging waste
There are several important actors, and citi-
this principle towards waste management 40
flows. Later, this responsibility was extended
zens’ support is essential. The entire circuit is
years ago, with the intent to establish who the
to other products like electrical and electronic
known as a collection scheme and is regulated
polluter is. In light of this, the easiest answer
equipment, batteries, tires, and used oil. This
based on European norms. Everything that
would be that citizens are the polluters. They
transition has allowed state authorities to find
happens in this scheme must be transpar-
generate waste and decide when a product
out whether manufacturers meet their envi-
ent and traceable. First of all, manufacturers
turns into waste. But the EU has raised some
ronmental protection responsibilities.
are responsible for packaging waste until it
result of the product design process. Hence,
exceptions for some products, where the product manufacturer has been established
reaches recycling or recovery plants. They can
Why is separate waste collection important?
delegate this responsibility to Organisations
as the polluter, instead of the consumer, and packaging waste is one example of this
Collecting unseparated waste means land-
sibility (OIREPs) - professionals who integrate
switch. It is important to note that 75 percent
fills growing near cities, with them catching
all other market players - or they can choose
of what happens in the operational and
fire during the summer, causing unpleasant
to pay a penalty to the Environmental Fund
that Implement Extended Producer Respon-
www.business-review.eu February Business Review | May 2016 2020
SUSTAINABILITY COVER STORY 14 39
Secondly, manufacturers must meet two
Administration. But if they choose to pay the
to the waste and thus contribute to lowering
penalties, this automatically diminishes the
the costs associated with its collection. As a
types of legal targets: one is related to the
chances for recycling targets imposed by the
result, the consumer who generates the waste
type of material – a 60 percent target for
EU and transposed into the national legisla-
eventually has the highest impact on it.
glass and 20 percent for aluminum – and the other one is the overall target, of 60 percent
tion to be met.
on all types of waste. OIREPs put all types of
must ensure that they only distribute
What can you tell us about the costs of selective waste collection?
products whose packaging is included in the
The EUstipulates that costs for selective
overall target, helping manufacturers meet
collection scheme. Next in the scheme are
waste collection should be calculated based
their responsibilities and optimising their
consumers, who must be aware of the need
on its quantity and quality and since 2018,
costs, especially for plastic (except PET) and
for selective collection and understand the
the market value of the material has been
aluminum. And this is what FEPRA does: it
negative effects of non-compliance. Local au-
added to this calculation. For example, at
provides a way for all the players involved in
thorities must make the collection infrastruc-
the international level, the price for a tonne
waste management to be more effective.
ture available and work with the “suppliers”,
of recycled paper was USD 120 a couple of
namely sanitation companies, which comply
years ago, but right now it’s down to almost
with legislation and collect waste selectively.
0. According to the European
Sanitation companies take the separated
Commission, the negative
waste and transport it to an authorised sort-
difference between the
ing station, then the waste is taken over by
value of the virgin mate-
transporters and delivered to recyclers. Recy-
rial and that of the recycled
cling can mean that the waste is reintroduced
one should be covered by
into the economic circuit,.
producers. In 2018, the EC
The next players are distributors, who
Organisations like FEPRA have the role of
materials together and meet the 60 percent
Third, OIREPs don’t sign individual contracts with collectors and recycling compa-
issued a new directive which
integrating all these players and contribute
further clarified the ways in
to the success of the system. The financial
which costs and incomes in
resources provided by our clients as a result
the system are set, as well
of us taking over their responsibility for
as the link between them.
packaging waste are used to stimulate the col-
Unfortunately, FEPRA is the
lection and separation of waste, mainly with
only company that wants to
the support of local authorities and sanitation
implement such a system on
companies. Together with sorting stations
the Romanian market. nies; an OIREP contracts a certain number of
and transporters, we make sure that the collected waste reaches recycling plants.
What kind of challenges will Romania’s waste management system face?
collectors and recyclers who work for all its
What role do citizens play in the selective waste collection process?
According to the European Commission’s
the system so that the recycling targets are
2019 Country Report on the implementa-
met. Last but not least, I think that it is im-
There is an inherent connection between the
tion of EU environmental policies (EIR), the
portant to think about how OIREPs will face
increase in consumption and the increase in
municipal waste recycling rate remains very
the challenges beyond 2030, when the global
the amount of generated waste. The Euro-
low in Romania, at 14 percent, which means
target for selective collection will go up to
pean Commission wanted to cut waste gen-
that Romania risks not meeting the recycling
85 percent, compared to today’s 60 percent.
eration rates without negatively impacting
target which has been set for 2020. Therefore
They should think of ways to support this in-
economic growth. This was possible through
it is clear that several system deficiencies
crease and reflect on the ways in which they
a system of shared responsibility between
must be addressed, and increasing the degree
will work with collectors, sanitation compa-
manufacturers and consumers. The “pay
of transparency would be a good starting
nies and recycling firms in order to support
as you throw” principle thus became a tool
point. The role of OIREPs is very important
investments in infrastructure.
designed to encourage individuals to selec-
in relation to manufacturers, for at least
tively collect their waste. This means that the
two reasons. First, if it had to meet targets
Will Romania face a crisis in the collection of packaging waste?
amount of money a citizen pays for municipal
individually, a manufacturer would have to
There are three types of packaging: primary
selective collection services depends on the
collect and recycle its own packaging, which
(which cover the product), secondary (which
quantity and the quality of the waste which is
is absurd. From this perspective, the advan-
allow products to be sold in a pack) and ter-
generated and collected selectively. Through
tage of an OIREP is that it collects all types of
tiary (used for transportation). Primary waste
their actions of separating waste or cleaning it
packaging in separate containers and recycles
is generated by the population, and the city
when needed, individuals bring added value
them regardless of their manufacturer.
hall is responsible for collecting it separately,
clients. Actually, OIREPs pay for that loss in
www.business-review.eu Business Review | February 2020
40 SUSTAINABILITY
it will be unalterable. Furthermore, from our
ment from the public flow alone. But there is
This means that there is a need for change. What should be done to improve the system?
a paradox here: while the government knows
There are two models through which pro-
to apply the optical character recognition
that city halls are not ready to do this yet, it
ducer responsibility can be implemented:
system for standard documents in the report-
forces manufacturers to work with city halls.
a partial cost system and a full cost system.
ing system. This way, manufacturers will be
At the moment, city halls contribute with a
Romania has adopted the first model, which
able to see the quantities FEPRA manages in
maximum of 5 percent of the quantities en-
means that it only covers the negative cost
real time, as well as the companies it works
tering the system. There are about 1.5 million
and everything depends on what all the other
with to meet the targets and the average cost
tonnes of packaging on the market, of which
players in the system do. But wouldn’t it be
for each type of packaging for the municipal,
our target amounts to about 900,000 tonnes
better to adopt a full cost system? It implies
industrial and commercial flows. Producers
(or 60 percent of the total). Considering that
that the manufacturer is the owner of the
will also be able to find information about the
about 550,000 tonnes of those 900,000 are
packaging, meaning that some financial
money FEPRA spends on bonuses and waste
primary packaging, this means that each
transactions that can significantly alter costs
tracking and the value of our operational
county should have a target of 15,000 tonnes.
are eliminated from the system. In addi-
costs. FEPRA intends to operate the waste
The best performing county in Romania from
tion, in this case, the manufacturer will be
management system with a maximum of 15
this perspective is Covasna, but it only con-
fully responsible, will fully manage its waste
percent of its operational costs (less than 2
tributes 1,000 tonnes to the system, followed
privately and will no longer depend on local
percent of its net profit). Last but not least,
by Arges county (600 tonnes).
authorities in the medium and long term. In
we will allow state authorities (Environment
this case, manufacturers will contract the
Ministry, Oversight Committee, Environ-
therefore it can collect, provide bonuses and meet targets on the primary packaging seg-
experience in the American waste management sector, we are in talks with Dropbox
mental Fund Administration, Envi-
What is the solution to this problem?
selective collection service for the entire
FEPRA has decided to take the lowest risk
packaging amount, as well as all
for its clients, namely the risk of losing its
the services required in order
operational license. We made this decision
to get the material back. The
considering that our clients’ biggest risk is
major benefit in this case
depending on their specific
not meeting their targets. Hence, FEPRA has
is that the manufacturer
activities.
committed to meet the targets in its clients’
keeps the recycled material.
names, regardless of the type of packaging,
Therefore, a circular econ-
but taking the type of material into consider-
omy can truly be created. It
ation. The market’s response to our initia-
is not easy to implement such
sustainability reports. As a
tive has been very positive. Although local
a system, but it would be easy
novelty for the Romanian mar-
authorities have introduced some regulations
for FEPRA, because we know how to
which will be good in the long term, they
do it. Not all OIREPs know how to implement
to its clients, based on the European Commis-
don’t offer a short-term solution. As such, the
such a system.
sion documents regarding the contribution to
ronmental Guard) to create their own user accounts in order to access relevant information
Along with meeting their targets, manufacturers are forced to submit
ket, FEPRA will offer carbon credits
decreasing carbon emissions resulting from
government has to make a decision around
recycling. The next step is to get authorised
targets. Another important issue is account-
In this context, what are the new things FEPRA brings to the market?
ability for false data in the system. Back in
FEPRA is a trendsetter for the Romanian mar-
its may be used. In addition, because each
2017, Romanian authorities first established
ket, both from the perspective of applying the
manufacturer has the obligation to elaborate
that if the manufacturer entrusts its respon-
legal framework in the environmental sector
a set of documents regarding the prevention
sibility to an OIREP (formerly known as Re-
as well as in terms of its business model and
and reduction of waste generation in the
sponsibility Transfer Organisations), the latter
the actions it takes. First of all, we bring
chain, throughout GIS, a company that is part
gets a fine if it doesn’t meet the targets. Yet
credibility: we’ve never failed in our efforts
of our group and specialises in prevention
2019 came with a new regulation, which says
to meet selective collection and recycling
and design services, we will be able to offer
that the responsibility for the fine belongs to
targets.
support to our clients, as an extended respon-
the sanctions imposed for not meeting the
those submitting false reports, namely collec-
FEPRA’s goal for this year is to provide
on the carbon market, so that these cred-
sibility service. We’re also working on a system for collect-
tors or the recycling companies, not OIREPs.
maximum transparency in regards to our
There are some OIREPs which are not visible
activity. We are currently working on a report-
ing not just waste, but also reusable packag-
in the field and yet they were reported to
ing and tracking software which addresses
ing. This system will help the manufacturers
have met their targets in 2018. In my opinion,
the reporting we do to our clients, the report-
impacted by the new local legislation (which
the system is still poor, and it especially
ing done by collectors, as well as the tracking
requires them to meet a minimum target for
works against manufacturers, which pays for
of waste. The novelty is that the data will be
reusable packaging) and will also contribute
the inefficiency of all the players.
recorded in a blockchain, which means that
to increasing their cost effectiveness.
www.business-review.eu Business Review | February 2020
MUSIC 41
This year’s top events for music aficionados With a large number of music festivals all over the country, most having enjoyed great international PR, Romania is wellpositioned as a party destination. Although we are still waiting for big names such as U2 to perform in the country, event organisers have already announced some surprises for 2020. By Oana Vasiliu
THE YEAR’S MOST IMPORTANT EVENTS
memories. Pink Martini with China Forbes
Lara Fabian is returning to Romania with two
(Mar 30) returns to Bucharest for yet another
concerts, one in Cluj-Napoca (Jan 14) and one
outstanding performance. Almost sold out, so
in Bucharest (Feb 3), presenting her latest
book your tickets ASAP.
album and enchanting the audience with her greatest hits.
SUMMER FESTIVALS ON MY MIND
Tarja Turunen (Jan 23), one of the most
Summer starts with a brand new electro-
as part of the 50 Heavy Metal Years tour. This
famous feminine voices, is going to perform a
techno festival in the heart of the capital
is history worth seeing live, we bet.
video show with 360-degree projections.
city, called Saga Festival (June 5-7), featur-
This year’s biggest hit will be Celine Dion,
ing Disclosure, Don Diablo, Faithless DJ Set,
who is going to perform in Bucharest on July
a one man show to the Romanian public, a
Marshmello, Meduza, Alan Walker, Sam Feldt,
29, as part of her Courage World Tour. Tickets
performance full of stories from the band’s
Sigala and Tiesto, as well as many others. Get
are selling quickly, so book your place.
history and from his autobiographical book.
into the groove.
Bruce Dickinson (Iron Maiden) will bring
Of Monsters and Men, Nothing But
The British vibes will be brought by James
Thieves, Tom Walker and Woodkid will all be
This Button Do?: An Evening With Bruce
Arthur (July 9), who already mesmerised the
waiting for you at the 10th edition of Summer
Dickinson.
Bucharest audience during his last perfor-
Well (Aug 7-9).
Save the date, Feb 8, and go to What Does
mance.
SPRING COMES WITH MORE SUPERSTARS
Electric Castle (July 15-19) has already an-
FALL INTO MORE MUSIC
Still remember the lyrics of Daddy Cool?
nounced the first names of this year’s lineup:
Classic is always fantastic, so they say. David
Great, then you have to book your ticket to
twenty øne piløts, Foals, The Neighbourhood,
Garett is back in Romania presenting Unlim-
the Boney M concert (Mar 8). The band is
Fisher, Zhu. And the best is yet to come, as we
ited love tour, with two performances, one in
celebrating 45 years of performances and
already know.
Bucharest (Oct 21) and the other in Cluj-Nap-
the event is going to have an opening act by Precious Wilson (Eruption). Bring on the
Judas Priest (July 21) is coming back to Romania with a concert at Arenele Romane,
oca (Oct 23). And the best is yet to come.
www.business-review.eu Business Review | February 2020
42 DETOX
Got detox on your New Year’s resolutions list? Every year, millions of people make the same New Year’s resolutions: losing weight, reducing stress, trying to make better food choices, and, of course, increasing physical activity. Sounds familiar? We bet it does. But what are your real options in a city like Bucharest?
and resistance and it’s suitable for all ages because water’s buoyancy helps you move more freely. The hydrostatic pressure enables one’s blood flow to circulate more effectively throughout the body. This effectively decreases blood pressure and, in the long run, decreases resting heart rate. And it’s
By Oana Vasiliu
amazing. Aqua Sport (www.aqua-sport.ro), Bery Fitness & SPA (www.bery-fitness-spa. ro), Body Exprim (www.bodyexprim.ro), Viva Sport Club (www.vivasportclub.ro) and World Class (www.worldclass.ro) all offer packages for these types of workout sessions. Prices start from RON 70/session. Indoor Cycling, also known as spinning, is a well-established sport with a history of over 20 years. These classes are mostly for those who are looking for a cardiovascular workout that requires a great amount of energy expenditure with minimal impact on your hips, knees and ankles, while providing a huge endorphin boost. In Bucharest, there are beginner, intermediate and advanced classes, so don’t panic when you see the
W
Start your detox planning
60-minute session: you don’t have to spin your heart out. Floating therapy happens in a sensory de-
ith another year gone, it’s only
environment, according to the CDC’s 2013
natural to take some time to
Report on Human Exposure to Environmen-
privation tank with salt water, which is dark,
reflect on life and goals. The new
tal Chemicals.
soundproof, and heated to skin temperature. As you’re cut off from all outside stimulation,
year brings the feeling of excitement and opportunity for a new beginning, and especially
THE KEY TO SUCCESS
including sound, sight, and gravity, floating
a chance to improve your health, but without
As you’re browsing the internet to find the
weightlessly in silence and darkness, your
a strict programme and clear objectives, it
best detox diet, most websites will tell you
brain is supposed to enter into a deeply re-
might prove impossible by the third week of
about one key to success: you need a good
laxed state. Some studies show that this type
January, when we “celebrate” Blue Monday,
plan, which should serve as a map and give
of therapy increases originality, imagination,
the most depressing day of the year.
you structure, together with a community to
and intuition, which can all lead to enhanced
support your efforts and to encourage you in
creativity, but may also improve focus and
your journey.
concentration. Check out Happy Float (www.
Simply put, we are exposed to toxins all the time. They are present in the food we eat,
happyfloat.ro), The Float Room (www.
the water we drink and the air we breathe. Some come naturally from the environment,
THE LATEST TRENDS IN TOWN
thefloatroom.ro) or Ovo Float Center (www.
while many others are synthetically created
Aqua Gym classes are increasingly popular
ovofloat.ro) to schedule a session.
through industrial activity. That’s why our
in Bucharest, with a lot of new hotels with
bodies, which are naturally in “detox mode”
pools opening across the city. Working out
word everyone’s using, but it’s actually a
every minute of every day, can’t fight them
in the water is one of the most therapeu-
state of mind, the basic human ability to be
all. Studies show that over 83,000 man-
tic activities one can engage in. Aqua gym
fully present, aware of where we are and
made chemicals are circulating freely in the
or water aerobics builds cardio, strength
what we’re doing, and not overly reactive or
Mindfulness seems to be the new buzz-
www.business-review.eu Business Review | February 2020
DETOX 43
FOOD The greatest challenge is probably having a healthy diet and providing your body with the good kind of fuel. The local supplements market has increased significantly, along with the number of nutritionists and holistic treatment providers, not to mention the food bloggers who are promoting healthy recipes and natural, fair-trade products. From this point of view, Romania still benefits from good soil and tasty farm products, and a trip to the local market can help you meet your need of healthy nutrients from fruits and vegetables. For those who don’t have the time to prepare their own detox treats, a series of healthy businesses have been developed recently. frufru is a well-established healthy overwhelmed by what’s going on around us.
cial media platforms. The new smartphones
food provider whose fresh products can be
Although most of these practices can be done
can provide data about the amount of time
found in most Mega Image stores, while de-
anywhere, some prefer to do it in a group,
you’ve spent using them, and the figures can
tox juices are increasingly popular, made by
with everyone working together on their
be quite scary. Research has shown that tech-
JuiceIT, Rawdia or Iconic by Camelia Sucu, to
state of mind. Group sessions start from RON
nology can be stressful, digital devices can
name a few.
80.
disrupt sleep, and heavy use may be linked to mental health issues such as increased ADHD symptoms and conduct disorder, as
THE MARKETING BEHIND WELLNESS THERAPIES
50 different options. Meanwhile, coach and
well as worse self-regulation. If you spend
Please read all the instructions carefully and
nutritionist Valentin Vasile from Revvolution
time on social media, you might find yourself
read reviews about other people’s experienc-
is developing an online platform for home
thinking that everyone else seems to be liv-
es with the products and services you want
workouts, which will also provide a person-
ing a fuller, richer, or more exciting life based
to acquire, and most importantly, get a com-
alised food plan.
on their posts, which is probably not true,
plete medical check-up before you try any of
and you might also experience fear of miss-
the above to learn about your body’s current
DIGITAL DETOX
ing out (FOMO syndrome), which is again a
condition. Not everything will be a good fit,
A digital detox is a period of time when a per-
false problem. Try to be more present and be
so don’t forget to be gentle with yourself.
son refrains from using tech devices and so-
aware of the dangers.
NATIONAL AND INTERNATIONAL WELLNESS TOURISM Although not used to their full potential, Romania has several places where you can find wellness programmes - both therapy and detox cures with mud or mineral waters. Check out resorts in Eforie Nord, Slanic Moldova, Baile Herculane, Baile Felix, CalimanestiCaciulata, with hotels offering complete detox programs. International wellness tourism is also becoming more and more attractive, with suitable packages available through tourism agencies such as Eturia and Carpatour, which have Bali, Sri Lanka or Maldive as top destinations.
GOING ONLINE FOR PRACTICE You can access online yoga classes through www.yogaonline.ro and select from over
www.business-review.eu Business Review | February 2020
44 CONTEMPORARY ARTS
Retrospective: New spaces for culture and alternative art Small galleries, impressive old industrial spaces, some Communist history made public and even a completely new building marked 2019 in terms of new cultural spaces. It is definitely still not enough to cover the emerging local cultural industries, but Rome wasn’t built in a day, either. Where should you check in? By Oana Vasiliu
Kunsthalle Bega
Cazul 101 Gallery
THE COMMUNIST APPROACH
for this museum are available on the AirBnb
BUCHAREST’S CREATIVE NEW SPOTS
While not necessarily related to the celebra-
platform.
Cazul 101 Gallery has moved to another artist-
tion of 30 years since the fall of the Com-
80east (Bucharest) is an NGO initiative
run space, a garage of approximately 20 sqm
munist regime, a few chapters of Romania’s
designed to present glimpses of recent Roma-
converted into an exhibition space for site-
recent history have been opened to the public
nian history, focusing on living and working
specific installations and works. The team
over the past year. Fortul 13 Jilava (near
in the ‘80s. A project for civic education and
thus offers an environment that, although
Bucharest) - an annex to the Jilava jail - is
for the conservation of recent memory.
constrained by space, encourages artists, giv-
going to be turned into a museum. The last
ing them total freedom of expression.
time this part of the jail operated was to hold
FUTURE INVESTMENT
The Hive is a new location hosting three
protesters during the December 1989 events,
Kunsthalle Bega (Timisoara) is an alternative
creative workshops on different design areas:
but the fort was best known for the political
space facilitating the progression from clas-
glass (Spectrum, which makes you discover
imprisonments of the Communist period. Re-
sical institutions to experimental ones; there
an innovative approach to stained glass,
cently, a lot of civic initiatives have provided
is a need for places that embody the qualities
fashion (ATELIER 42, which serves as the
guided visits to this place, telling people
of a museum and the experimentalism of
primary creative outlet of a tailoring work-
about the atrocities committed by the regime.
alternative spaces. The founders say that the
shop, offering an exquisite collection which
The Museum of Living in Communism
ideal solution for a city full of art is the “kun-
aims to satisfy the need for uniqueness) and
(Brasov) is a museum-hotel, a mix that
sthalle”, a place that takes into consideration
contemporary jewellery (JULS, a conceptual
allows visitors to experience the lifestyles
the values of a museum but has the ability to
jewellery brand defining a minimalist line,
of the Ceausescu era, through magazines,
function freely. And they seem to have found
primarily using geometric shapes).
books and fried Romanian banger (parizer) to
the best place in this old industrial building.
furniture and other decorative symbols from
CREIC or the Regional Center for Excel-
Mercato Comunale, in a new space, where this versatile urban pop-up garden offers
that period. You get access to films about
lence in Creative Industries (Cluj-Napoca) is a
co-working spots, superstar food-trucks, a
communism, documentaries about the 1989
one-of-a-kind building in this cultural space:
farmers’ market, and one of the largest selec-
Revolution or the 1987 workers’ revolution
it is brand new and can be used by anyone
tions of craft beers. Best to visit during the
in Brasov, local newspapers from the ‘70s
in the creative industries, offering spaces for
summer, but a perfect place to work in winter
and ‘80s, magazines and almanacs. Bookings
both freelancers and companies in this sector.
time as well.
www.business-review.eu Business Review | February 2020
RESTAURANT REVIEW 45
EXPENSIVE MEDIOCRITY >>> Mandaloun, 89 Caramfil, 0747 020 469 <<<
I
t is the ugliest restaurant I have ever
at RON 60-80, the price mounts up. Even
Many dishes also included “seven spice”.
encountered - simply a triumph of
a portion of rice costs RON 20. And all this
This is simply a powdered mix of pepper,
bad taste over style. There are seven
without their wine, which is not cheap, but
cumin, coriander, cardamom, cloves, nut-
is good quality.
meg, and ginger. All are seeds ground into a
colours in the rainbow, but when you mix them with pastel shades there are more like
So we had a “hummus”, loved the world
powder. How simple - and the House tosses
seventy, and it feels like they are all on dis-
over as a pureed mix of chickpeas, lemon
it into various dishes to give a Lebanese
play in this ludicrous place. Multicoloured
juice, tahini paste and olive oil. How simple
“feel” to the flavour. Go to the spice shops
tables, walls and seats converge in a riot of
is that! But the House wants to make it look
in Obor, buy your spice there, and you can
mismatched madness. But enough about
skilled and complicated, so they have five
do it yourself at home.
that; let’s eat.
varieties of it by sprinkling it with a tiny top-
So off to the mains. They had several
ping of minced meat, pepper, etc. But hell, it
chicken or beef dishes on the menu, but
It is one of 30 Lebanese chophouses
is just hummus.
in the city. Savvy restaurateurs
that is down to a bit of laziness
Off we
have capitalised on the fact
from the House, as they have chosen an easy
that every, yes every
option in terms of
ingredient of Leba-
supply. The real
nese cuisine is
meat staple
available here in town. So let me
in Lebanon
turn you into a
is lamb. It is
Lebanese cook
hard to come
in an instant
by most of the
and do not be
year, so the House com-
turned off by
promised by
the names of the dishes, as they are
using “berbec”,
simplicity itself to
which is a tough old mutton. This pensioner
make. went to
Start with fresh corian-
a “sambousek”, a
der, parsley and mint, and you’re
was cooked before it passed away of old age.
in business. You can add this trio to almost
thumb-sized pastry filled with a choice of
anything you make, and the House used
five ingredients, including cheese, spinach,
flavour of seven spice. The mutton was
them liberally. They had a “fattouche”,
and minced meat. So boring and with no
shredded rather than cut into chunks or
which is almost a tourist staple of the
mystery. There was even less mystery with
slices. I sympathise with the House for this
“trio” in a salad, plus thin toasted chips of
their “labneh”. It was yoghurt mixed with
presentation, as there is little else you can
bread looking like corn chips. So easy, but
seven different things including olives, mint
do with mutton. But they made it palat-
when you take out the bread and replace
or pomegranate, so why call it labneh? It’s
able, so bravo House.
it with bulgar wheat (looks like rice) you
yoghurt.
rename the same dish to “tabbouleh”. Both
Each dish on the menu had a description
I had a lamb stew with the dominating
There are literally hundreds of Lebanese recipes that you can find online. Just
are starters, out of a vast array, all costing
of the ingredients which always included the
Google Lebanese cuisine, and make them
around RON 25-30.
word “condimente”. Do they think we are
yourself. You will be stuck for a supplier of
But they are small, and they are tradi-
so stupid that we would not understand or
lamb, and your best bet is to look up a Halal
tionally served as “meze”, meaning you fill
recognise the condiments? Is it just salt and
retail butcher in town.
the table with a large selection of different
pepper? I suspect they are trying to mystify
meze. At RON 25 per dish (and you could
you into thinking there is something special
Michael Barclay
order 4-5 per person), when you add a main
or exotic in them. Let me help you out here.
mab.media@dnt.ro
www.business-review.eu Business Review | February 2020
46 CITY
Cultural calendar Liquid Saloon concert Jan 27, Control Club
By Oana Vasiliu
Global pop star Lara Fabian is on tour, celebrating not just her 30-year-long music career, but also her 50th birthday. The latest tour will feature both her classic hits as well as her latest Frenchlanguage album, Papillon. Tickets are still available and prices start from RON 325.
The well-established Jazz Nouveau series starts its new season with Liquid Saloon, who are going to perform in Romania for the first time. The Tel Aviv band is a newly-formed band made up of
Disney concert with the Bucharest Symphonic Orchestra Feb 7-8, Metropolitan Circus Bucharest
gettable show with his orchestra.
three leading musicians on the Is-
The artists will perform Vivaldi’s
raeli scene: Amir Bresler (Avishai
“Seasons”, as well as many other
Cohen, Kutiman Orchestra) on
pieces that will capture the audi-
drums, Sefi Zisling (Funk’n’stein,
ence in the magic of classical
The Ramirez Brothers) on trum-
music. Tickets start at RON 99.
pet, and Nomok (A-WA, Gili Yalo) on keyboards, as well as bass
Turandot premiere Feb 13-16, National Opera Bucharest
player Elysaf Bashari and guitar player Roi Avivi. The band is going to present their latest album, with music that is uplifting and
On Control Club’s the alternative
contains groovy explorations of
scene, the Tag Your Ideas project
sound, fusing together elements
offers a meeting with artist Cata-
of African Highlife music and
lin Burcea, a contradiction of two
jazz.
Lara Fabian concert Feb 3, Sala Palatului
distinctive realities that have in Do you enjoy the music of
common the idea of a city’s main
Disney cartoons? The Bucharest
street. “The social ‘matrix’ and
Symphonic Orchestra is going to
the relation of accommodation
perform the most famous songs
in a city becomes the reason of
from the Disney world: The Lion
Under the Tiberiu Soare’s baton,
our time. The relation between
King, Mary Poppins, Aladdin,
one of the most famous pieces by
resident and public sphere, as
Frozen, The Jungle Book, The
Giacomo Puccini is returning to
a co-habitation, ease, initiation
Beauty and the Beast, and The
the stage of the National Opera of
and conservation of a culture of
Little Mermaid are all going to be
Bucharest. The cast has not yet
a very determined community
part of the playlist. An all-family
been announced, so stay tuned
show the potential of interfering
type of event.
for more information. In any
with and re-improving a public
case, the performance is going to
sphere/space,” describes curator
be spectacular.
Eugen Radescu Catalin’s installa-
Luka Sulic (2Cellos) concert Feb 8, Sala Palatului Luka Sulic, the member of the well-known band 2Cellos, returns to Bucharest to perform an unfor-
tion. While there, grab a beer and
Tag Your Ideas: Catalin Burcea x FREE NOW Until February 20, Control Club
take a look at the club’s programme - you will definitely find a live concert or a party concept that will make you stay longer.