REAL ESTATE CONSULTANCY TIPPED TO DOUBLE IN VALUE IN 5 YEARS
June, 2019 / Volume 23, Issue 6
www.business-review.eu
6
FROM HOME TO WORK, I0T IS STEADILY RESHAPING SOCIETY
28
CHARGING LOCAL STARTUPS THROUGH THE WORLD’S MOST POWERFUL LASER
34
TIMISOARA WAITING FOR ITS MOMENT TO SHINE
40
CSR SEES UPS AND DOWNS ON WAY TO MATURITY
Photo: Dreamstime
www.business-review.eu Business Review | June 2019
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Deputy Editor-in-Chief •
6 Real estate consultancy tipped to double in value in 5 years
COVER STORY
W
Re(starting) businesses
8 CSR matures despite lack of clarity around charity
ith the local political scene being dominated by three
HEALTHCARE
main events at the end of May – the PSD losing the EU elections, the valid referendum called by President
Klaus Iohannis to prevent the party from further weakening the courts, and the three-and-a-half year prison sentence handed
18 2019 – the ‘go
down to its leader Liviu Dragnea – Romania seems to be pushing
digital’ year for Regina Maria
the restart button.
22 Romania begins
Apart from political challenges, the local business community is on its way to making things happen, and its social involvement is
major health reform to boost private funding
one such example. With the local CSR scene remaining on a steady trend, companies are now focusing on refining their CSR projects, aiming to tackle topics that have a long-term impact on the environment or communities where they operate. More and more firms are finally starting to make a difference between charitable endeavors and responsibility. Plus, an effective CSR policy means that a company acts ethically in the way it does business, and chooses its clients and suppliers. A company which genuinely applies the principles of CSR will
ENTREPRENEURSHIP 32 Driving innovation: Startups moving to ease Bucharest’s traffic
34 Charging local startups through the world’s most powerful laser
be engaged in a business which contributes to the overall wellbeing
CITY
of the community and will not be concerned solely with profit. At international level, corporate responsibility continues to mature too. One of the key shifts we’ve witnessed in recent years is a move toward “values”: customers, employees, investors, environment. This approach has been accelerated by the fact that companies have to stand up for values like inclusion, empathy and environmental preservation. This means we all need to push the restart button to make things happen. How ethical is your business? Take a look at our cover story.
38 Laura Coroianu, Emagic: ‘Live music events are tourist gold for the local economy’
40 Timisoara waiting for its moment to shine
44 Expat eye 46 Cultural calendar
EDITORS-IN-CHIEF: Anda Sebesi, Sorin Melenciuc JOURNALISTS: Anca Alexe, Paul Barbu, Aurel Dragan, Romanita Oprea, Oana Vasiliu CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | June 2019
4 NEWS
WHO’S NEWS
up 23 percent compared to the previous year, while Dante, the
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
group encompassing businesses in Romania, including Fashion Days, Bulgaria and Hungary, posted RON 4.24 billion, up 28 percent. For the entire eMAG group, the turnover was RON 4.77 billion, up 17.5 percent, reaching the EUR 1 billion mark, announced Stanciu.
Iulian Mangalagiu has been appointed managing director and spokesperson for the Romanian subsidiary of Austrian construction group Wienerberger. Previously, Mangalagiu served as CEO of Romanian brick manufacturer Brikston, a business unit manager for Henkel Romania and marketing and sales director for Rigips Romania. He is a construction engineer and holds a Business EMBA from Asebuss and Kennesaw University in Georgia, US, as well as a Master’s Degree in Construction from the Technical Construction University of Bucharest
Camelia Nita has been recruited by PwC Romania to head its tax reporting and strategy team, which provides accounting, payroll, human resources administration and strategy and fiscal compliance services. Nita has over 20 years of experience in the field. She is a graduate of the Cybernetics School of the Economic Sciences Academy and has been involved in several initiatives related to education, leadership training and professional development. She is also a coach in the Leadership Academy program developed by the Association for Values in Education. page 5
The retailer also reached 9.44 million customers, of whom 4.97 million were in Ro-
In 2018 eMAG invested EUR 141 mln in different areas of activity
eMAG expands to 9 countries following merger with Hungarian Extreme Digital
mania, 1.31 million in Bulgaria, 1.86 million in Hungary and 1.3 million in Poland. The number of new customers added last year was 1.86 million, half of which were in Romania. In 2018 eMAG invested EUR 141 million in different areas. About EUR 76 million was put
By Aurel Dragan
into a new warehouse and
Online retailer eMAG is now
and other countries is an op-
logistics center, EUR 30 million
present in nine countries after
portunity for Romanian sellers
into technological develop-
striking a deal with a Hungar-
to find new markets. We hope
ment and EUR 33 million into
ian counterpart. “Recently we
to reach EUR 1 billion in sales in
international expansion. “In
announced the merger with
Hungary in six years,” said Iulian
the next five years we plan to
Extreme Digital from Hungary,
Stanciu, CEO of the group, which
invest EUR 150 million in tech-
for which we’re hoping to get
has recently expanded to Croatia,
nology as it is the main driver
the approval of the Hungar-
Slovenia, the Czech Republic and
for the company’s develop-
ian institutions in a couple of
Slovakia. eMAG Romania’s sales
ment and profitability,” said
months. Expanding in Hungary
reached RON 3.17 billion in 2018,
Stanciu.
Three local start-ups reach final of South East Europe Tech Tour 2019 By Aurel Dragan Three Romanian technology start-
presented online recruitment
ups are on the shortlist of projects
platforms for companies, and the
presented at the second edition of
third (SymphoPay) is a platform
the South East Europe Tech Tour,
for integrating payments with
held from 28 to 29 May in Bucha-
the POS card. South East Europe
rest and Sofia. Of the three local
is posting significant economic
companies waiting for investors,
growth, with countries in the re-
two (Jobful and Smart Dreamers)
gion having solid entrepreneurial
The start-ups selected had the highest score in the selection process
www.business-review.eu Business Review | June 2019
NEWS 5
Real estate deals down by 22 pct in Q1 2019 Oana Petrescu is the new general manager of Blue Air, replacing Marius Puiu, who had been interim GM for the airline since September last year. Petrescu joined the Blue Air team in January 2018 as interim chief financial officer and turnaround manager. Previously, she was an audit partner, risk advisor and consultant for Arthur Andersen, Ernst & Young, and Deloitte. She also served as executive VP of the Romanian Commercial Bank.
By Aurel Dragan The number of transactions in the Romanian real estate market declined by 22 percent year-on-year in the first quarter of this year to 116,109, according to Imobiliare.ro. Analysts suggest that the drop could be a consequence of the fact that the First House (Prima Casa) governmentbacked program, which is still responsible for a significant slice of demand on the residential market, didn’t run in January and February. In Q1 2019, most sale and
Cluj-Napoca is one of the most dynamic cities on the local real estate market
purchase transactions took
In the analyzed period, the most
tered in Cluj county (down by
place in Bucharest (19,698
significant decline, 49 percent,
26 percent from 9,543 sales in
transactions), followed by
was observed in Iasi, where the
the same period of 2018), and
neighboring Ilfov county (with
number of real estate acquisi-
Timis (a fall of 24 percent, from
10,082 contracts), Cluj (7,017),
tions fell by more than 3,000
8,685 purchases). A decline
Timis (6,572), Brasov (6,120),
contracts, from a total of 6,905 in
of 9 percent was registered in
Constanta (4,025) and Iasi
the first quarter of 2018.
Brasov, from 6,750 transactions
(3,527). The volume of real estate
The second biggest drop was registered in Constanta,
in the first quarter of 2018. As in 2018, Bucharest – Ilfov
deals concluded in the first
where 6,225 sales contracts were
was the only developed region
three months of 2019 decreased
concluded in the first quarter
in Romania that avoided a
compared to the previous year
of last year, a fall of 35 percent.
decline in trading activity at the
in most developed counties.
Significant dips were also regis-
beginning of 2019.
Cristian Prichea has been appointed managing director of Ford Romania’s National Sales Company, where he will directly lead the local import and sales operations. He is an economic engineer specialized in mechanics, a graduate of the Polytechnic University of Bucharest, and has been at Ford Romania since 2010, in various marketing roles. Since 2016, he had been working in the sales coordination department of Ford Europe in Koln, Germany.
ecosystems that have generated more than USD 5 billion for investors in recent years. The start-ups selected had the highest score in the selection process. Founded in 1998, Tech Tour is described as a unique international platform dedicated to innovative start-ups in emerging markets and in search of investors and financing, from idea to success story. The platform supports IT entrepreneurs and their projects through access to the online tech community and over 25 networking events organized annually.
Alina-Gabriela Popa who since 2015 had been general manager of OMV Petrom Global Solutions, the support company for the activities of OMV Petrom and OMV, has been appointed financial director of OMV Petrom, for a four-year term. Popa started working at OMV Petrom in June 2006, when she took over the financial reporting department. Previously, she had managed the financial audit department of Deloitte Romania.
www.business-review.eu Business Review | June 2019
6 REAL ESTATE
Real estate consultancy tipped to double in value in 5 years The real estate market is maintaining the good momentum that it has enjoyed for the last few years, and this can be seen in the consultancy market, which is attracting new players despite the fact that some analysts are predicting a crisis in the near future. By Aurel Dragan to reach this threshold, it is necessary to regulate the industry’s professional rules, adopt a work model focused on exclusive representation, and create strong networks and associations. This context is also an opportunity and a responsibility for strong brands in the field, which must focus primarily on an integrated system, constantly developing and sustaining office networks. “The local real estate market is passing Photo: Dreamstime
through its best period in the last decade and there are numerous opportunities. Although the real estate segment registered a decrease in the first quarter compared with the same The local real estate market is passing through its best period in the last decade
C
period of last year, we are still up 25 percent compared to 2017 regarding the number of completed transactions. The industrial
onsultancy in the real estate market
Romanians’ increased appetite for real estate
segment is going through a real boom, the
has long been an unknown in terms
transactions requires specialized advice
office and retail segments offer steady yields
of size and turnover. And it is still
and constant professional guidance focused
and the investment market has stabilized at
opaque when it comes to the small army of
on customer needs and preferences. That
approximately EUR 1 billion. For 2019 we’ve
agents carrying out transactions involving
said, from a brief analysis compared to the
set a turnover of approximately EUR 4 million
old properties between private individuals.
developed markets, we note that there is still
and our objective for 2010 is to be among the
But for the big real estate players managing
great potential for growth in the field, which
five largest real estate consultants in Roma-
offices, industrial spaces and new residential
requires joint efforts from players to reach the
nia,” said Andrei Sarbu, CEO of SVN Romania.
buildings, things are different and estimates
peak. Constant investment in education and
are available.
The company is the recently opened
the need to professionalize agents to Western
local office of SVN International Corp, a
RE / MAX Romania, part of the world
standards will bring a change of perception
well-known US brand in real estate consul-
leader in real estate and the world’s number
from the Romanian public in relation to the
tancy, with 200 offices in eight countries and
one franchise on this segment, estimates that
industry in which we operate, giving clients
regions and over 1,600 consultants and staff.
the real estate consultancy market in Roma-
the confidence they need in the real estate
“Romania presents the biggest potential in
nia has reached about EUR 80 million, and
consultant’s quality services,” said Razvan
the region. For example, hundreds of proper-
predicts that the market will double in size in
Cuc, president of RE / MAX Romania.
ties are sold for over EUR 500,000 every year
five years. The report also found that while in
On a market where the main players are
at national level, not only on the residential
2014 the market was characterized by insta-
RE / MAX, Colliers, CBRE, Coldwell Banker,
segment. And through a comparison with
bility, the industry has made great strides in
JLL Romania and newcomers like SVN Roma-
other states in Central and Eastern Europe we
recent years in terms of professionalism and
nia, there are about 8,000 agents or one agent
can observe that all the real estate segments
trust in the target audience. “The real estate
per 2,500 inhabitants, while in North America
still have significant growth potential,” said
consultancy market has witnessed an acceler-
the ratio is one agent per 300 inhabitants.
Rafal Noriega, international sales director at
ated evolution in recent years, a sign that
According to the RE / MAX representative,
SVN International Corp.
www.business-review.eu Business Review | June May 2016 2019
COVERENERGY STORY 14 7
Local energy sector loses steam due to output troubles, new regulations Romania has traditionally been an electricity exporter in the region over the last couple of decades, as its Communist-built power industry was large and diversified. But commentators warn the situation is about to change due to output troubles generated by lack of investment, poor management and bad regulations. By Sorin Melenciuc Photo: Dreamstime
FROM EXPORTER TO IMPORTER Last year, Romania was still an electricity exporter, but the amount of exports was much lower than in previous years. But in the first quarter of this year the country became a net importer, left reliant on large imports to ensure the power needed by its businesses and households. According to official data, Romania imported 1,125.5 million kWh over January-March 2019 and exported only 862.6 million kWh, putting the country’s electricity balance into the red. Electricity exports halved (down by -52.9 percent) in the first three months of this year, while imports rose by 78.5 percent. This reliance on imports was due to a slump in power output, which was down by 10.8
fied output structure but its coal electricity
doubling the production capacity of wind
percent compared with January-March 2018,
producers – all state-owned – are generating
power could solve some of the problems
associated with a slight decline in consump-
losses and need investments to stay in busi-
Romania is now facing.
tion, of 1.6 percent, during the same period.
ness. At the same time, almost all coal power
But the situation remains tense as Romania
capacities built during the communist era are
TAXING PROBLEMS
continues to rely on imports to cover its
outdated and need to be modernized. Due to
The most stable and profitable energy pro-
electricity needs. Transelectrica data seen
these problems, Romania relies heavily on its
ducers in Romania, Hidroelectrica and Nucle-
by BR show that even on a calm day like
hydropower and nuclear energy suppliers,
aelectrica – which produce the cheapest
May 28, Romania imports electricity due to
Hidroelectrica and Nuclearelectrica, both
electricity in the system – have been hit this
weak wind power output. Experts blame
state-owned. But the two electricity sources
year by the emergency ordinance 114/2018,
regulatory and tax measures. “Romania has
cannot meet the whole consumption. The
which imposed a special tax of 2 percent on
bigger problems with ensuring its real power
other available sources are gas-based power
turnover and capped the profit margin at 5
production capacities. Causes? The regula-
and wind and solar power.
percent for the energy supplied to house-
tory and tax framework. We must quickly
The total power of the local wind turbines
holds. Both companies need investments
drop the obligation to trade energy produced
is 3,029 MW, but production from this type
valued at billions of euros in order to ensure
by new capabilities on the stock exchange
of power sources is very volatile in a country
long-term electricity output. But beyond
futures market. This regulation creates major
located far from the planet’s oceans and
taxes, Romania’s power producers, almost
problems with the financing of new invest-
prevailing winds. In eastern Romania, close
all state-owned, have faced other challenges.
ments,” said Razvan Nicolescu, a former
to the Black Sea coast – where most of the
Running out of revenue sources, the govern-
energy minister and now energy consultant
local wind turbines are installed – wind is
ment has forced the energy companies to pay
at Deloitte. Large electricity imports are
not constant, which means that wind power
extra dividends over the last couple of years
due to output troubles and to the electricity
could fall from a peak to nothing in a couple
to curb its large budget deficits, leaving the
production structure. Romania has a diversi-
of hours. However, some experts say that
firms without money for investments.
8 COVER STORY
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COVER STORY 9 Photo: Dreamstime
CSR MATURES DESPITE LACK OF CLARITY AROUND CHARITY
www.business-review.eu Business Review | June 2019
10 COVER STORY
With the local CSR scene remaining on a steady trend, companies are now focusing on refining their CSR projects, aiming to tackle topics that have a long-term impact on the environment or communities where they operate. More and more firms are finally starting to make a difference between charitable endeavors and responsibility. Business Review highlights some of the main trends on the local CSR market and sat down with specialists to find out where it is now and what’s next. By Anda Sebesi
A
ccording to the study, “The Dynamic and Perspectives of
of CSR will be engaged in a business which contributes to the overall
the CSR field in Romania” conducted last year by Valoria
wellbeing of the community and will not be concerned solely with
and CSRmedia, the local CSR market slowed down in 2018
profit,” says Jurubita.
compared with 2017, while the number of companies which involved
For example, as Coca-Cola HBC Romania’s sustainability report
their employees in CSR activi-
for 2016-2017 shows, the com-
ties posted a significant drop.
pany focuses on implementing
The same study found that
sustainable practices in all
49 of the firms included in the
its processes and operations,
survey said that they had a lo-
both in relation to its consum-
cal CSR strategy implemented
ers, employees, clients and
compared with 55 percent in
suppliers and environmental
2017, while 30 percent of the
protection and supporting
respondents (compared with 35
local communities. “Our com-
percent in 2017) said that their
mitment is to encourage our
CSR budget stagnated last year.
partners and support com-
In addition, 21 percent said that
munities where we operate to
their CSR budget was between
use as sustainable practices
EUR 50,000 and EUR 100,000
as possible and pay increas-
in 2018. Last but not least, 36
ing attention to their impact.
percent of the respondents run
Through our actions, we aim
projects with an average value
to contribute to the creation of
of EUR 10,000-50,000 while
a real sustainability ecosystem
just 3 percent said that the
in Romania that includes the
average value of their projects
entire value chain generated by
exceeded EUR 100,000.
Coca-Cola HBC Romania. We
But beyond the figures, how
need to understand that the
has the local CSR scene devel-
discussion around this topic is
oped in recent years? “Over
not just about the environment
the last few years, I think we have seen significant development in
but about the effects of all of our actions,” said Irina Ionescu, public
the way CSR is understood and promoted in Romania, especially by
affairs and communication manager at Coca-Cola HBC Romania,
larger companies. The key point to understand is that CSR is not just
earlier this year, on the release of the 2016-2017 company’s sustain-
the simple act of making donations to good causes. While this is,
ability report.
of course, important, CSR is also about the whole value system of a
Kaufland Romania is another example in this regard. The
company and how it plays a responsible and positive role in the com-
company embeds sustainability in its business strategy and makes
munity,” says Ramona Jurubita, country managing partner at KPMG
decisions considering its impact on the environment, communities
in Romania.
where it operates and its supply chain, clients and employees.
She adds that a company with an effective CSR policy acts ethically in the way it does its business, and the way it chooses its clients
A TURNING POINT
and suppliers. “A company which genuinely applies the principles
Since 2017, it has been compulsory for Romanian public interest
www.business-review.eu Business Review | June 2019
COVER STORY 11
entities with at least 500 employees to issue an annual non-finan-
operates. It will become an essential element of doing business for
cial (sustainability / CSR) report, as well as the traditional financial
companies to have a well-developed CSR strategy. “Moreover, in
report. The sustainability report must focus on issues like the com-
response to growing awareness of the importance of CSR and sus-
pany’s environmental policy, the protection of employees and com-
tainable development issues, the related performance attributes are
munity support. In addition, as of this year, non-financial reporting
increasingly being used by companies to differentiate their brand,
will be compulsory for all firms operating in Romania with more
products and/or services to both consumers and competitors, en-
than 500 employees. “I think this is a very welcome development,”
hancing their reputation. So companies will be more active in CSR
says Jurubita. “Many companies now have quite a well-developed
and will develop reliable and diversified CSR strategies,” concludes
CSR strategy and it is particularly welcome that many now combine
Jurubita.
some of their charitable donations with financially supporting NGOs in a coordinated way. This reduces the danger of companies ‘com-
UN SUSTAINABLE DEVELOPMENT GOALS
peting’ to be seen to be supporting good causes. However, in some
Last but not least, on January 1st 2016, the 17 Sustainable Develop-
of the smaller companies, CSR activities are still often rather ad hoc.
ment Goals (SDGs) of the 2030 Agenda for Sustainable Development
I expect this will change over the next few years.”
— adopted by world leaders in September 2015 at an UN Summit
As pundits say, overall, the approach of many Romanian
— officially came into force. Over the next fifteen years, with these
companies to CSR has progressed from an incoherent and project-
new Goals that universally apply to all, countries will mobilize
based manner of acting to one of strategic management, with clear
efforts to end all forms of poverty, fight inequalities and tackle
directions of involvement, established on the basis of stakeholders’
climate change, while ensuring that no one is left behind.
legitimate demands and each company’s socio-economic impact on society.
The SDGs aim to go further to end all forms of poverty. The new Goals are unique in that they call for action by all countries, poor, rich and middle-income to promote prosperity while protecting the
WHAT’S NEXT?
planet. They recognize that ending poverty must go hand-in-hand
“With global challenges like climate change, environmental protec-
with strategies that build economic growth and addresses a range
tion, human rights, and workforce diversity increasingly in focus,
of social needs including education, health, social protection, and
I expect more and more attention will be given to CSR both in Ro-
job opportunities, while tackling climate change and environmental
mania and in other countries,” says the KPMG representative. While
protection.
a few decades ago, CSR merely meant giving money to a few good causes, now it is about the whole ethos behind the way a company
Note: The companies and CSR projects/programs included in this article represent only a selection. The article is not a comprehensive report on the Romanian CSR market.
www.business-review.eu Business Review | June 2019
12 COVER STORY
Trend 1: Equal opportunities and gender equality
grants for projects. It is a step forward in the development of the local CSR market and proof that companies believe smaller NGOs have great potential to make things happen. Kaufland Romania is one such example. In partnership with the Many companies active on the local market address equal opportu-
Act For Tomorrow Association, the company launched this year
nities and gender equality issues.
Start ONG, the first and so far only financing program dedicated to
Ikea Romania in partnership with Fundatia Comunitara Bucuresti
small and infant NGOs. The total sum offered by Kaulfand Romania
launched the Ikea Fund for Gender Equality in December last year,
with the aim of supporting such NGOs is EUR 500,000, which will be
with a total value of about RON 630,000. The fund was launched
used to finance over 100 projects this year. Education, environment,
with the aim of offering three years’ financial support to projects
health, social and culture are the main directions of the program,
in Bucharest and Ilfov county that encourage the economic inde-
while the maximum grant is EUR 10,000 each. “Social and environ-
pendence of vulnerable women and promote gender partnership.
mental responsibility is our priority and so we take the support of
According to the most recent Equality Gender Index, Romania ranks
civil society to the next level. Thus, we created Start ONG, which
25th in the European Union for gender equality. The index analyses
allows us to invest in the development of younger NGOs and support
women’s and men’s situation when it comes to the labor market,
their ideas,” says Katharina Scheidereiter, CSR manager at Kaufland
financial resources, their level of education and health, the way
Romania.
they use their spare time and their decision-making power. “Ikea is a company built on humanistic values and we think that gender equality is important for both our employees and customers,” said Ioana Stefan, Ikea Romania’s ambassador for diversity and inclusion, earlier this year.
Trend 3: Cash investments in the healthcare system
In the same vein, since last year, all Ikea employees who became fathers get a month’s paid paternity leave as soon as their partners return to their jobs. During this month, from which employees can benefit once, they get their entire monthly salary. “Time spent with families is important to create a work-life balance and makes our employees more satisfied. We want to support our employees in their new roles. Throughout this measure we want to encourage the equal involvement of fathers in raising their kids from infancy,” says Georgiana Stancu, HR manager at Ikea Romania. Elsewhere, Kaufland Romania has allotted a specific budget from
Many multinational companies focus their financial efforts on
its #Instaredebine program, to finance five projects dedicated to the
bolstering the infrastructure of the local medical system. From
promotion of women and their rights. Last but not least, Kaspersky
contributions to the building of hospitals, to building heliports and
Lab sponsored Girls in Tech’s Amplfy, a competition for women en-
renovating blood transfusion centers nationwide, firms deliver
trepreneurs. It is one of several initiatives that the company supports
significant investments.
to achieve its goal of helping more women to follow their passion for
The EUR 10 million investment made by OMV Petrom in the con-
digital products and services. And through the project, “PwC’s Tech
struction of the first pediatric hospital specialized in oncology and
She Can”, Kaspersky Lab aims to increase the number of women
radiotherapy in Romania, an initiative of Daruieste Viata Associa-
working in technology.
tion, is by far the largest contribution in this regard. Half of the sum will be used to buy the medical equipment needed to diagnose and
Trend 2: Small grants for small NGOs
treat pediatric cancer, while the remainder will be directed towards
Some companies have started to address small companies, offering
order to contribute to the same major project developed by the NGO.
interior furnishing and sanitary appliance works. MasterCard is another company that chose to donate EUR 1 million and double the sums donated by its customers to Daruieste Viata Association, in
www.business-review.eu Business Review | June 2019
COVER STORY 13
“We hope that solidarity for the causes that matter for the community will become a normal act through which we build together a better future. So our commitment is to get involved in supporting the community through long-term partnerships,” says Cosmin Vladimirescu, country manager at MasterCard Romania. Elsewhere, Mol Romania and Inima Copiilor Association joined forces to build a heliport on the roof of Marie Curie Pediatric Emergency Hospital, with an investment of EUR 425,000. Works will start this fall.
in Romania, with an investment of EUR 170,000. Cartier Hub is a
Last but not least, the modernization of the 41st blood transfu-
space provided for the community of the Drumul Taberei district
sion center nationwide has been completed recently. The project was
as a catalyzer of urban life in the neighborhood, bringing together
part of the program called “A chance for life”, a partnership between
different social and cooperative groups with the aim of improving
Vodafone Romania Foundation and React Association. The total
local quality of life. The location also hosts educational and personal
investment made by the foundation was EUR 1 million.
development workshops for children, adults and seniors as well as civic education, arts and recycling workshops. “Through Cartier Hub
Trend 4: Accent on technology and smart solutions to improve lives
we intend to offer locals from this district a space where they can express themselves in a place built as a response to their needs. It is designed to bring people together and help them to create connections with others,” says Raluca Crisan, country leader at Ceetrus Romania.
Trend 6: Technology for life and education
Innovation is the key for the progress of any society and investing in social projects that aim to improve the lives of local communities is a major step towards economic and social development in Romania. Earlier this year, OMV Petrom launched the second edition of its “RO Smart in Tara lui Andrei” competition, through which can-
Tech firms focus their efforts on using technology to improve the
didates could get financing of up to EUR 45,000 per project. The
quality of life of different disadvantaged groups and to educate.
total value of the grants is EUR 500,000. Projects have to address
Earlier this year, Orange Foundation launched a new edition of
sectors like education, health, the environment, transportation and
Digitaliada for the 2019-2020 school year, a contest that includes ten
infrastructure, with the aim of improving Romanians’ lives. “Our
schools from rural areas that will be included in the digital educa-
first edition financed RO Smart projects that proved that technology
tion program. So far Digitaliada has reached 4,500 students from
can improve the quality of life of the community. Projects that make
49 schools from rural areas, who learn math and informatics using
a difference in transforming today’s communities into communi-
interactive digital methods. “In three years, Digitaliada has created
ties of the future using technology and digitalization are eligible for
a national community leading to the creation of an online commu-
the competition,” said Mona Nicolici, manager of the sustainability
nity around the Digitaliada platform. We will continue to invest and
department of OMV Petrom, earlier this year.
support these communities, offering them meanings through which they can use, create and share as much as possible digital education-
Trend 5: Community development
al content,” says Dana Deac, president of the Orange Foundation.
Companies now focus on making a contribution to the commu-
important programs and since its launch, six years ago, Connecting
nity development concept. Earlier this year, Ceetrus opened in the
for Good has financed over 55 projects, reaching 470,000 Romanians
Drumul Taberelor retail center Cartier Hub, the first community hub
nationwide, with a total investment of over RON 18 million so far.
Technology can be used to help solve social problems, too. One such example is Connecting for Good, a program developed by Vodafone Romania Foundation. It is one of the foundation’s most
www.business-review.eu Business Review | June 2019
14 COVER STORY
OPINION Dragos Tuta,
founder and managing partner at The CSR Agency
Philanthropy is proof of generosity, not responsibility belonged and still belongs to the communication
their supply chain is a responsible and sus-
department.
tainable one. So there are plenty of projects
Supporting those in need is the main reason
that come in general via the group affiliation,
behind donations for sure, but in the meantime,
which are implemented within a company.
it is doubled by the intention of the donor to
But because of the incorrect definition of CSR
improve his or her results. It is important to say
and of the concept of a company’s responsi-
that multinational companies are still the main
bility towards society, they are not seen as
active players on the CSR market, as it was they
CSR projects even though they represent a
who brought this concept to Romania. The sole
pure form of CSR.
strategic mistake they make is that the commu-
But more importantly and imperatively
nication department communicates donations
is to get closer to the model of assuming
and sponsorships as proof of the level of respon-
ethical responsibility, to see more and more
sibility of its company: “We made donations and
companies that are involved in important
so my company is a responsible one.”
themes for the nation – like the 17 Objec-
But this logical statement is false too. It is
tives of Durable Development, promoted by
would say that in the last decade companies
good to donate, we encourage companies to get
the UN – and which generate through their
have treated the ethical responsibility of their
involved in charitable activities and they don’t
activity and their indirect or induced impact,
businesses like their philanthropic responsi-
have to stop doing it. But we need to understand
changes in fields like environment protection,
bility, confusing the idea of being charitable
that philanthropy is proof of generosity. To be
climate change, quality education, health and
with being responsible.
responsible means to look rather at the decisions
wellbeing of Romanians, sustainable cities
you make on a daily basis and at the impact you
and communities, responsible consumption
have on the environment, society and economy.
and production, to name a few. The targets of
If I gave an overview of CSR in Romania, I
As Carroll defined the pyramid of responsibilities, any business starts with responsibility to make a profit. The second responsibility of a business in his theory is the legal one – if you manage to plan a business that is able to make profit, then do it legally so that you don’t risk your freedom and safety. The third is ethics, meaning that, “you run your activity, make profit legally and ethically without having a negative impact on the resources or others’ lives.” Social, economic and environmental
Along with these charitable actions, the
the 17 Objective of Durable Development are
resources can be included here. Last but not
same multinational companies – often based on
not just the responsibility of the corporate
least, philanthropic responsibility is at the top
decisions taken at group level – invest in increas-
sector and I don’t think that the private
of the pyramid, which means giving donations
ing their degree of responsibility. It is about
sector is the only one that can contribute to
or sponsorships from the profits you have
companies that made investments in cutting
achieving these goals. But it is still one of the
at your disposal after fulfilling all the other
their impact on the environment by changing
most important players in this regard. In the
responsibilities.
the technologies they use now, especially in the
meantime, there is a need for collective effort
industrial sector. There are plenty of compa-
to promote these targets towards citizens, so
climbed this pyramid very fast and skipped
nies that monitor and improve gender equality
that they can require political and adminis-
over the third stage, and corporate ethical
indexes, equal payments regardless of gender or
trative leaders and private companies to pay
responsibility remained somewhere in the
that have created systems and work intensively
attention and improve the national impact in
background, because the function of CSR
together with their suppliers to make sure that
this area.
Unfortunately, in Romania companies
www.business-review.eu Business Review | June 2019
PARTNER CONTENT 15
How to free the romanian business by changing the rules of the game? offers them personalized online promotion campaigns worth 20,000 euros for each company. „Starting from the needs and challenges of our business customers, we wanted to change traditional conventions and help entrepreneurs not to worry about the cost of communications services, to be free of contract and benefit from unlimited 4G internet. We also wanted to support the Romanian business environment and help those brave and ambitious entrepreneurs grow through the #GAMECHANGERS project. They are companies in various business fields that have demonstrated that they know and can attract customers through completely different concepts from competitors in the same field of activity”, said Ovidiu Ghiman, Chief Commercial Officer, Business Segment, Telekom Romania. INVESTMENTS IN SUPPORTING ROMANIAN START-UPS Telekom has also provided support for start-ups at the beginning of the road, with enthusiastic and exciting business ideas, but with limited resources to put them into practice through programs such as WeAccelerate or Guerrilla Camp. How can you change the rules of the game in a market with fierce competition, like the telecom market, where the patterns are well defined
FOCUS ON THE TEAMS BEHIND ENTREPRENEURS THROUGH „CONVINCE
and multiplied many times? Telekom Romania succeeded in changing
YOUR BOSS!” CAMPAIGN
the rules based on the belief that it is normal for entrepreneurs not to
In line with all the initiatives based on the game changer philosophy,
longer worry about communications costs, to have unlimited access
Telekom launched „Convince Your Boss” campaign in April 2019, encour-
to 4G data traffic and not to be constrained by any minimum contract
aging teams to express their needs for telecommunication services
period and cancellation fee. In November 2017, Telekom launched the
and persuade their managers to opt for subscriptions with unlimited
#BUSINESSLIBER promise, through an unprecedented offer on the
benefits for the company. Those who accepted the challenge also had
telecom market: Freedom means unlimited 4G internet, unlimited
the opportunity to win tickets to UEFA Champions League final for
minutes and messages at 5 euro / month, with a unique market benefit:
their teams.
contracts without the minimum contract period and without termina-
„When we decided to change the rules of the game we were also
tion fee. Two years after the launch, over 250,000 entrepreneurs use the
aware of the value of the teams behind the entrepreneurs and the
Freedom Services Portfolio.
needs of the people who make up these teams. And with our latest campaign, “Convince your boss!”, I encouraged these people to take
#GAMECHANGERS, THE PROGRAM BY WHICH TELEKOM TELLS THE
the initiative, open a discussion with their decision makers and ask for
STORY OF THE BUSINESS THAT CHANGED THE RULES OF THE GAME
their right to full freedom in communication. We encouraged the teams
But Freedom was just the first step towards changing the rules of
to persuade their boss to port the company’s subscriptions to Telekom
the game. The next steps were the programs dedicated to supporting
and enjoy the unprecedented benefits of Freedom offer. It was an
Romanian entrepreneurship. When reaching the 200,000 threshold of
opportunity that helped them get rid of all constraints related to tele-
entrepreneurs „free” with Freedom, Telekom decided to invest 200,000
communication services and gain a unique experience for the team: 10
euros in promoting 10 businesses that have rewritten the rules in the
tickets to the UEFA Champions League final”, said Ovidiu Ghiman.
industries they operate in and share their business philosophy com-
It is not easy to change the rules of the game, things do not happen
pany. The 10 selected businesses are the ones that have attracted at-
overnight. Telekom found the recipe when it decided to focus on the
tention by simplifying the way to do business, offering a new customer
support offered to entrepreneurs not only through services and offers,
experience, supporting digital business partners, or how they managed
but also by investing in promoting and accelerating their business. This
to lead their business to performance. Telekom tells their stories here,
is how the rules of the game change in business. So Telekom continues
one by one, at https://www.telekom.ro/business/gamechangers/, and
its #BUSINESSLIBER mission.
www.business-review.eu Business Review | June 2019
16 COVER STORY
Sustainable businesses should become mainstream in coming decades Leonie Schreve, ING’s global head of sustainable finance, tells Business Review about the concept of sustainable finance, the lender’s involvement in this field, and how this approach will help companies to develop a sustainable business and be increasingly competitive in the future. By Anda Sebesi What are the main international trends in sustainable finance?
ity performance. Furthermore,
Banks have a major role to
funded by our clients, in align-
play in supporting sustainable
ment with the UN Sustainable
development, and socially
Development Goals. Across
responsible behavior and poli-
the globe, ING’s clients are also
cies. Although ING’s own oper-
increasingly funding projects
ations have been climate-neu-
with a positive social impact,
tral for over a decade, we can
such as affordable housing
make our biggest contribution
projects and improving access
to a sustainable future through
to basic services.
we’re seeing an increasing diversification of the projects
Sustainability is an impor-
financing. ING decided in 2012 to integrate sustainability fully
tant business opportunity.
into its commercial strategy.
Considering the increasing
We believe sustainable busi-
regulatory and policy pressure,
ness is better business and by
and society’s awareness of the
focusing on forward-thinking
urgency to transition towards a
companies that are driv-
more sustainable economy, we
ing change to become more
expect the sustainable finance
sustainable, we will have a
market to continue to grow and
positive impact on business in
launch innovative financing
the long term. By supporting
solutions in the coming years.
clients as they future proof their business, we are future proofing ours. Sustainability practices have evolved from being predominantly cost-cutting projects to tangible, revenue-driving strategies. Following the Paris Agreement, we have seen a significant growth
How can you define the green finance market and at what level does it stand now? The issuance of sustainable debt grew significantly to over USD 240
in the sustainable finance market. As governments, companies and
billion in 2018, as the market evolved to meet increasing demand
investors are seeking to meet global targets to reduce greenhouse
from investors. In the first few months of 2019, this growth trend
gas emissions and combat climate change, the sustainable finance
accelerated. ING supported multiple sustainability transactions in
market provides the financing solutions to fund and invest in the
the first quarter of 2019, several of which were sustainability finance
transition to a low-carbon economy.
‘firsts’: the first green bond for an auto leasing company, the first
For this reason, we’re seeing significant interest from our clients
sustainability improvement loan in the US general industrial sec-
and investors in green bonds and green loans, which fund green
tor, and the first green bond in the Philippines to fall under ASEAN
projects with clear environmental benefits, such as renewable
standards.
energy, low-carbon transport and sustainable buildings, as well as
An important upcoming development that will continue this
in sustainability improvement loans, an instrument that rewards
trend is the European Commission’s initiative to launch a green
those companies that are committed to improving their sustainabil-
finance taxonomy which will bring additional clarity to market par-
www.business-review.eu Business Review | June 2019
ticipants regarding the definitions of green projects and potentially reduce transaction costs. Simultaneously, investors are increasingly considering environmental, social and governance (ESG) factors in their investments. Larry Fink, CEO of the world’s largest asset manager BlackRock, said that investors should expect “every company [to] ... show how it makes a positive contribution to society.” More recently, he claimed that within five years all mainstream investors will use ESG measures to value companies. As a response to this movement, all the big credit rating agencies are also starting to assess how ESG factors influence their rating decisions. ING financed 12 green bond deals in Q1, plus 16 green loans/improvement loans, and delivered a series of first in-kind transactions in the market. Since we designed and launched the Sustainable Improvement Loan onto the market in 2017, we have closed over 50 of these transactions and lead more than half as sustainable coordinator in the financing syndicate.
From a sustainable perspective, what do you think will be the future of polluting industries worldwide and of those who are large consumers of natural resources? The industrial sector, which consumes significant natural resources, is one of the most exciting and significant opportunities for ING to work with our clients in their transition towards tomorrow’s economy. We actively seek a dialog with these clients to explore opportunities to improve their sustainability performance and identify new business models that are more sustainable, for instance, by exploring circular economy opportunities. The circular economy is an exciting and inspiring approach to creating a new economy, a new way of consuming, using and producing products. It’s about rethinking how we use raw materials and resources to create a sustainable economy free of waste and emissions. This approach will bring significant opportunities to the industrial sector. These efforts also align with ING’s pledge to steer our EUR 600 billion lending portfolio towards the Paris Agreement’s two-degree goal. Engaging with our clients in carbon-intensive sectors and supporting them in their transition towards a sustainable economy is part of our role as a bank. With the aim to create an industry standard we designed – together with 2Dii – an open source methodology (the Terra approach), which is already being tested by over 15 banks globally.
In light of climate change, how do you think a sustainable business will look in ten years from now? We expect sustainable business to become mainstream in the coming decades. Non-sustainable companies will not be competitive in the future. Companies earn their license to operate by conducting their business in a competitive and responsible way. Sustainability is a competitive advantage. Sustainable companies make more efficient use of natural resources, have a lower likelihood of financial penalties in a context with increasing environmental regulations and also face lower reputational risks than their counterparts.
COVER STORY 17
ING involvement in sustainable finance In 2017, ING collaborated with Philips on the first loan linking the interest rate to the client’s sustainability performance and rating. June 2017: ING supported Barry Callebaut, manufacturer of chocolate and cocoa products, in amending and extending its revolving credit facility of EUR 750 million to be linked to the company’s sustainability performance, a first in Switzerland. August 2017: ING was joint lead arranger in the GBP 250 million bond for Anglian Water, the UK’s first water sector green bond. October 2017: ING supported Abertis, the international toll roads manager, to develop its first sustainable loan for a total of EUR 100 million. January 2018: ING launched Sustainable Investments, committing EUR 100 million of capital to investments to support sustainable “scale-ups”. The fund’s first investment was awarded to Exasun, a developer of solar panels and solar roof tiles that are at least twice as durable as traditional solar panels and generate more energy. In September 2018, ING’s sustainability fund’s second investment was awarded to Black Bear Carbon (BBC), a company that recycles old tires into a raw material used to make things like pen ink, smartphone covers and new tires. February 2018: ING partnered with the European Investment Bank (EIB) to provide EUR 300 million to finance green shipping. ING and Korea Housing Finance Corporation (KHFC) worked together on the first social covered bond in Asia. ING acted as a joint lead manager and joint book runner for this five-year EUR 500 million bond and is part of a collective of four banks. February 2018: ING France issued EUR 150 million to Gecina, the largest European office REIT, the first sustainabilityimprovement loan measured by its GRESB rating. May 2018: ING supported a waste management business, Renewi, in converting its main banking borrowing into a EUR 550 million green loan. It is the first UK company with a loan margin linked to achieving environmental and safety key performance indicators. September 2018: ING acted as MLA and joint green loan coordinator in the SGD 1.2 billion refinancing term loan secured by Frasers Tower, Singapore Tanjong Pagar CBD. It is the first syndicated green loan in South East Asia under Green Loan Principles, which were introduced by the Loan Market Association and Asia Pacific Loan Market Association in March 2018. November 2018: ING announced the successful issue of a 12-year EUR 1.5 billion and seven-year-long USD 1.25 billion green bond – its second own green bond transaction.
January 2019: ING UK worked with South East Water to develop its sustainable finance framework under which the company can issue Sustainability Bonds and Sustainability Loans. The delivery enables a sustainable supply of top-quality drinking water to 2.2 million customers in the south east of England.
www.business-review.eu Business Review | June 2019
18 HEALTHCARE
2019 – the ‘go digital’ year for Regina Maria With the digitization process gaining ground in many sectors, both in Romania and worldwide, companies need to adjust their strategies to the new economic context and come up with a portfolio of digital tools to ease their interaction with clients. Fady Chreih, CEO at Regina Maria, tells Business Review why the private healthcare network has invested significantly in IT and digital tools for its patients and is therefore considered the most digitalized healthcare network on the local scene. By Anda Sebesi
F
ew industries have seen such dramatic changes as healthcare has in recent years. The sector is strong and
growing, with a value of USD 3.2 trillion in the United States alone in 2016, according to PwC data. Growing consumer demand for digitalbased health services is ushering in a new model for care in which patients and machines are joining doctors as part of the healthcare delivery team, according to a survey by Accenture, conducted last year. The survey results also show that consumers are increasingly using a variety of digital self-service tools for managing their health. For instance, consumer use of mobile and tablet health apps has tripled over the past four years, from 16 percent in 2014 to 48 percent in 2018. In one such example, patient portals, more than four in ten respondents (44 percent) said they have accessed their electronic health records over the past year, primarily to get information on lab and blood-test results, look at physician notes regarding medical appointments and view their prescription history. Last but not least, 74 percent of US respondents said they were satisfied with the virtual care they had received, with nearly half (47 percent) saying that, given a choice, they would prefer a more immediate virtual medical appointment over a delayed inperson appointment. The findings relate to the US portion of a seven-country survey that Accenture
Fady Chreih, CEO Regina Maria
commissioned as part of its 2018 Consumer
www.business-review.eu Business Review | June May 2016 2019
COVER HEALTHCARE STORY 19 14
Survey on Digital Health report. The purpose
provided by their employers. As PwC says,
market. The service allows a patient to regis-
of the survey — of 7,905 consumers aged 18
private healthcare providers have to prepare
ter personally in the system – thus announc-
and older, including 2,301 from the US — was
for increasing demands from these patients
ing their presence for a medical appointment,
to assess consumer attitudes toward health-
and changed preferences regarding greater
either using the mobile app My Regina Maria
care technology, modernization and service
care for health and more frequent use of
Account or self-check-in terminals in the
innovation.
available medical advice; an opportunity to
receptions of its clinics. Plus, patients can
see a doctor, with expectations to indepen-
find rapidly both the floor and medical office
healthcare, consumers increasingly expect
dently select a given specialist; an immediate
where they need to go and receive re-confir-
to use digital technologies to control when,
and convenient opportunity to see a special-
mation of the name of their physician.
where and how they receive care services.
ist, have diagnostic tests done, and access
By harnessing digital technologies in this
test results.
“Driven by experiences outside of
The entire process takes about 15 seconds and eliminates extra time spent at the reception. “It is an option mainly for the benefit
way, healthcare will increasingly tap digital technologies to empower human judgment,
… AND LANDING IN ROMANIA
of the patient and it comes in addition to the
free up clinician time and personalize care
Once the technology advances, its implica-
online appointment option. So our patients
services to put control in patients’ hands,”
tions for companies becomes more and more
benefit from full control of their time and
said Kaveh Safavi, senior managing director
visible. Digital consumption forces firms to
their entire medical journey with us. They
and even artificial intelligence or data mining
adjust or change their traditional ways of ap-
can choose how to interact with us, from the
tools. The same analysis shows that the value
proaching their customers. According to the
medical appointment to receiving the results
of the private medical services market in the
2018 edition of the Barometer of Digitaliza-
of their tests or medical investigations, which
region is estimated at nearly EUR 14 billion
tion, a study conducted by Valoria in partner-
can be checked online too, through the “My
per year.
ship with doingbusiness.ro, the digitalization
Account” facility from Regina Maria mobile
process is on an upward trend among com-
app or website,” says Fady Chreih, CEO at
logical revolution that will take place in the
panies that operate in Romania, with private
Regina Maria. “If they choose to manage
coming years will be private private medi-
healthcare service providers among them.
everything by themselves, then this is the
for Accenture’s global healthcare business.
MOVING TO EUROPE... For the countries of Central and Eastern Europe (CEE), technological development is primarily a great opportunity to catch up with their more developed Western European counterparts, and is conditioned on the implementation of an effective business model, in terms of both cost and quality of services. According to a PwC analysis (entitled Patient in the Digital World – How new technologies are changing the medical services market in Central and Eastern Europe) close to 60 percent of patients in CEE are prepared to use telemedical solutions. The new generation healthcare will increasingly use more technological innovations, such as mobile devices, dedicated applications, teleconsultations,
The group most affected by the techno-
cal suppliers’ patients, who pay for services
In this context, Regina Maria, the private
from their own pockets or use medical care
healthcare network, recently launched its
subscription packages/medical insurance
self-check-in service, a premiere for the local
alternative. It is a step towards medicine 2.0.” According to Chreih, the reason behind this strategic move is the fact that our world
www.business-review.eu Business Review | June 2019
20 HEALTHCARE
is now in constant change. Plus, the pace
Romania. “We demonstrate this through our
the scores of its doctors on the website, “Ask
of adjustment to the current context is no
appetite for offering our patients all the tools
a doctor” and self-check-in are some of them.
longer a cliché and it plays a major role in the
and facilities they need when interacting
“We have invested an average of EUR 2 mil-
performance and the future of a company.
with us. Plus, it is about us, as an organiza-
lion per year in recent years in digital tools,
The mobile trend, connectivity, real time and
tion, being in line with international digital
although sometimes the budgets allotted
user experience are concepts already adopted
and mobile trends. It is a process that started
have been even larger than that,” says Chreih.
by companies that aim to keep pace with
five years ago and since then we have tested
He adds that through these investments,
the new demands in the services sector and
many things, developed systems and the nec-
the company aims to improve its patients’
offer their customers a relevant and complete
essary infrastructure and allotted a dedicated
experience and optimize their interaction
digital experience.
investment budget in this direction,” explains
with Regina Maria. “It is about empower-
the Regina Maria head.
ment. People have full rights when it comes
“Regina Maria constantly improves its user-experience and increases the effectiveness of the communication with its patients. This is why we have developed our portfolio of digital solutions, including the selfcheck-in service,” adds the CEO. At present, the self-check-in service is available through the Regina Maria mobile app and in 11 locations in Bucharest (including its three hospitals: Baneasa, Euroclinic and Ponderas Academic Hospital), Cluj, Iasi, Brasov and Timisoara. “We are thinking of extending the service to our entire network, but for now we are monitoring the results of this pilot-project, which is being implemented in large locations with significant patient traffic. We are testing, assessing and optimizing it based on feedback from our users and are likely to make a decision about its extension within six months to a year,” adds Chreih. According to him, for Regina Maria, 2019 is the “go digital” year. “So far, we have improved our patient experience by launching the online appointments service and self-check-in, but there are other digital
Online appointments, self-service (a
to managing their medical journey at Regina
options we are working on now,” says the
facility through which the company ensures
head of the healthcare provider. He adds that
that its patients’ medical data are safe), “Ask
such services, especially self-check-in, are a
a doctor” and other projects that are under
tistics data (INS), cited by economica.net,
novelty for the medical field both in Romania
development are part of the company’s digi-
and analyzed by the Patronage of Private
and in the region, despite already being used
talization process.
Healthcare Services Providers (PALMED),
by other sectors like air transportation.
As for the main digital tools that Regina
Maria,” he says. According to National Institute of Sta-
there were about 60,000 medical units in
Maria has invested in so far, the company’s
Romania in 2017. This means that if the entire
website, the mobile app Regina Maria that
Romanian healthcare system were digitalized
SIGNIFICANT INVESTMENTS IN DIGITALIZATION
integrates “My Account” (which offers access
at a minimum level, the investment made by
to medical records from Regina Maria over
both private and state-owned healthcare pro-
According to Chreih, at present Regina Maria
the past ten years), the option for online
viders would reach EUR 120 billion per year,
is the most digitalized healthcare network in
appointments, “My Pregnancy” mobile app,
according to calculations made by Business
www.business-review.eu Business Review | June 2019 May 2016
COVER HEALTHCARE STORY 21 14
Review (at an average investment of EUR 2
internet, sometimes from dubious sources, to
an answer via email within one or two days of
million per year). “At international level we’re
going to a doctor. We considered it our duty
their request,” adds Chreih.
talking about a digital transformation which
to contribute to proper information and sup-
helps patients take care of their health more
porting health education,” says Chreih. The
WHEN PATIENTS RATE THEIR DOCTORS
easily and quickly. The focus is on increasing
company already implements such activities
In order to increase the effectiveness of
the effectiveness of the entire medical flow,
among its subscribers, through workshops
its activity and optimize it, Regina Maria
on easing interaction between patients and
organized for its corporate clients. “The real
implemented electronic feedback in 2014,
healthcare services providers. Telemedicine,
battle was online, where forums were and
enabling patients to give feedback on doctors
artificial intelligence, online payment and
still are full of unwitting advice.”
via e-mail or directly, using the Regina Maria
The Regina Maria website now hosts
mobile app. “All feedback received is ranked
Chreih. “But because there are very new
verified information written or validated by
as positive, negative or neutral. All the nega-
trends in the healthcare sector, we’re learn-
doctors and covers almost every medical
tive feedback, known as alerts in our internal
self-check-in are on the wave now,” explains
language, is sent instantly both to our customer care department and the manager of the specific location for which the patients gave their feedback. When possible, we take immediate measures. Each time, these cases are debated at team level, improvements of the flows are made and patients receive a response to their feedback,” explains the CEO. So far, over 1,200 of the clinic’s doctors have been scored as a result of 165,000 unique reviews, and the average score of the doctors working within Regina Maria network is 9.6. Scores are based on a feedback enquiry which includes ten questions to assess both medical and non-medical aspects of the ing from each other. And first, we learn very
topic of general interest from medical tests
patient’s visit: from the cleanliness, to the
much from the feedback and suggestions of
(including a dictionary), to pregnancy, nutri-
waiting time, interaction with the reception-
our patients.”
tion, sleep, allergies, flu, cancers, women’s
ist and satisfaction with the medical side
and men’s health, infant illnesses, infograph-
(doctor’s attitude, interaction with him or
service was launched in July 2018 and started
ics, myths about health and medical curiosi-
her, information offered). Each patient gives a
with an average of 100 online appointments/
ties. “In addition, our patients now have the
score for all of these aspects, which generate
month. In less than a year it reached 10,000
‘Ask a doctor’ option, where they can upload
an average score and assessments which are
such appointments a month. “It is on an
medical documents and address different
monitored carefully each month.
upward trend with monthly average growth
questions to our specialists. They will receive
According to him, the online appointment
of 40 percent. If this current trend continues, we estimate that 30 percent of the appointments could be scheduled online by the end of 2019,” says Chreih.
PLAYING A DOUBLE ROLE The Regina Maria website has developed a lot in the last few years, from a simple site to an educational platform that encourages a healthy lifestyle. Its transformation started back in 2014, generated by a more complex context. First, it was about the need for proper medical information that is previously validated by doctors. “Let’s keep in mind that Romanians are champions when it comes to self-diagnosis and self-medication. People prefer gathering information from the
How does self-check-in work? Upon reaching the location of their appointment, patients have two self-check-in options: Directly from the app, accessing “Details about appointment”. In order to do online check-in the patient needs to have the location turned on and allow the Regina Maria app to access the location; At the self-check-in desk in Regina Maria locations: either scanning the QR code available both in the Regina Maria app and in the emailed appointment reminder or introducing the code sent via SMS.
www.business-review.eu Business Review | June 2019
22 HEALTHCARE
Romania begins major health reform to boost private funding Romania has started a major reform of its much-criticized health system by allowing patient copayments to private medical services providers, a measure that pundits say could boost the country’s private health services market and private funding of the medical sector. But patient advocates have expressed concern. By Sorin Melenciuc a personal contribution to cover the difference between the tariffs for medical services charged by private providers and the fees charged from the budget of the National Social Health Insurance Fund settled by the health insurance houses,” states the document. The measure could boost private businesses in the sector, which have a much lower market share than public providers. Copayment was forbidden in Romania until this year and there were several inspections of private hospitals around the country to root out extra-personal contributions by patients. Local associations of private health service providers welcome the move, saying that it will improve services and lower cost for patients. The Romanian private healthcare market has been on the rise in recent years, with networks such as Regina Maria, MedLife, Medicover, and Sanador benefiting from the trend of middle- and high-income patients preferring to avoid public hospitals. The number of Romanians with private health insurance policies increased last year by 33 percent
C
Experts and authorities alike argue that this reform has another major advantage: boosting competition for patients’ benefit. According to the health minister, copay-
ritics say that Romania’s healthcare
BOOSTING PRIVATE HEALTHCARE SERVICES
system is dominated by old public
In April, the government approved an emer-
ment in the private medical sector is the first
hospitals in need of urgent mod-
gency decree that allowed copayments by
step towards a real private health insurance
ernization, largely characterized by lack of
patients to private medical services provid-
market that covers some of the funding
funding, bad management, corruption and
ers, a key measure proposed by the Health
needs.
low-quality services.
Ministry.
For years, experts and private medical
“Individuals with health insurance who
“By introducing this personal contribution, we are basically paving the way for the
providers have called for reforms in order to
choose to benefit from medical services
kind of insurance that we need. For example,
allow private funds to enter the local health-
provided by private providers concluding
Germany has four categories of insurance.
care market as the demand for medical ser-
contracts with health insurance houses for
Even public hospitals could benefit from
vices is increasing fast due to higher salaries
continuous hospitalization, clinic specialty
this insurance. What we are doing now is
and the ageing population.
ambulatory and outpatient clinics can pay
stimulating the public sector to be more ef-
www.business-review.eu June 2016 2019 Business Review | May
COVER HEALTHCARE STORY 23 14 Meanwhile, the organization pointed out
ficient,” said the minister, Sorina Pintea. The
healthcare system. Official data show that the
main beneficiaries of the new measure are
country had 576 hospitals at the end of 2017,
that physicians prescribe too many innova-
Romania’s private hospitals and laboratory
out of which around 400 are public.
tive, expensive drugs to patients despite the
networks, which will cover their entire costs from health insurers and patients. “For private healthcare providers, the
But almost all public hospitals in Romania were built before the collapse of the Communist regime, and there have been no major
fact that cheaper generic or biosimilar drugs are currently available on the market. “For example, using only biosimilar onco-
main advantage is that they will be able to
investments in medical units over the last
logical drugs based on the active substances
work on the real cost of the service provided.
three decades.
trastuzumab and rituximab would save the
The fees do not even cover the real cost of
Another major problem for the Romanian
public budget EUR 13 million, to which may
medical services. Equipment investments
healthcare system is the massive migration of
be added the decrease in prices resulting
have been made, wages have risen, utility
doctors and nurses to Western Europe.
from the current practice of the auction pro-
prices have risen but tariffs have not been
Romania currently has almost 60,000
updated,” points out Eduard Dobre, execu-
physicians, while around 15,000 Romanian
tive director of private healthcare provider
medics work abroad.
PALMED. But some patients’ organizations reject
This situation puts patients in the country
cess,” said the APMGR. The national public healthcare budget is devoted largely to three programs: oncologic, diabetic and dialysis.
in competition for access to decent medi-
these arguments and warn that the reform
cal services, well-reputed doctors and even
will increase the cost of medical services in
medicines, and informal payments are often
MORE FUNDING NEEDED FOR AGEING POPULATION
Romania at patients’ expense.
the current form of securing access to them –
Experts warn that Romania will need to find
“It is a great disadvantage and will hit some social categories:
or even to survival. According to data col-
chronic, acute patients,
lected by 360medical.
and mothers. More than
ro, patients cover
300,000 mums go to the
additional funding in the future to finance rising healthcare costs due to its rapidly ageing population.
20.8 percent
According to a recent
doctor every year with
of the cur-
their children and from
rent health
Romanian elderly care
now on they will have
expenses
and support projected
to put money aside for
in Romania
it. In fact, social health
from their own
insurance will disappear,” said Vasile Barbu, head of the National Patient Protection Associa-
until 2030 are the highest in Europe.
pockets, making this the second largest funding source of the local health system.
tion in Romania. Official data show that, despite the rapid
ING report, Belgian and
“In most countries elderly people pay for their care and home support largely or entirely themselves. This is most common in Roma-
RISING BUDGETS WITH LITTLE IMPACT
nia, Italy, Spain and Poland,” the report says.
development of private medical providers in
But the poor state of the healthcare system is
Romania, the local health insurance market
not always associated with lack of money in
care services, can be essential for an indepen-
remains weak, held back by regulations and
Romania. In fact, public spending on health-
dent elderly life.
low purchasing power.
care rose rapidly during the last decade.
According to official data, the number of
In 2019, the government estimated that
Home support services, including health-
Some private providers are already investing in this type of healthcare services.
Romanians with private health insurance
the public healthcare fund, FNUASS, which
policies increased last year by 33 percent
bears most of the costs of medical services
ing too slowly, and a major challenge is the
compared to 2017 to over 365,000.
and medicines in Romania, will increase by 9
aging population, the problem of elderly
percent compared to 2018 to RON 37.8 billion
care in Romania. So I am now focusing my
(EUR 8.1 billion).
attention on this phenomenon,” says Wargha
At the same time, the sums paid for private health insurance policies, which generally cover services offered in the private
But many local generic drug producers
medical system, increased last year by 60
protest that the current regulations favor
percent to RON 335 million (EUR 72 million),
expensive innovative drugs and limit access
a negligible sum compared to total healthcare
to cheaper generic or biosimilar drugs.
costs in Romania.
The Association of Generic Medicines
“Attitudes towards the patient are chang-
Enayati, owner of local private healthcare services provider Regina Maria. In fact, many experts point out that private pensions and private healthcare insurance could cover a large part of the fund-
Manufacturers in Romania (APMGR) recently
ing needed in Romania within the coming
POOR MEDICAL SERVICES, EXTENDED INFORMAL PAYMENTS
warned that the claw back tax imposed on
decades to cope with the ageing population
pharmaceutical companies has the effect of
and provide Romanian seniors with a decent
Critics, patients and medical providers alike
reducing the number of generic medicines
quality of life.
agree on the need to modernize the country’s
available on the local market.
www.business-review.eu Business Review | June 2019
24 ELECTION
Political battle in Romania reflects economic, cultural and historical fractures Romania has again been convulsed by a new election round so this is a good moment to reflect upon the roots of its political structure and its strong links with the country’s historical, social and economic fractures. By Sorin Melenciuc 20th century as the newly formed Romania failed to industrialize and remained a country owned by rich landowners, while 80 percent of the population was made up of very poor peasants forced to work on huge estates. Ironically, in 1907, when a violent peasant revolt broke out against landowners in the Kingdom of Romania, the Austrians introduced the universal male vote in Bucovina.
CURRENT SITUATION AND PERSPECTIVES These economic, cultural, social and historical fractures are strongly influencing the political battleground and tend to create political conflict as well. Currently, around 45 percent of RomaRomania has two very different sides – one sophisticated and modern and the other poor
E
nians still live in rural areas, a percentage much higher than in any advanced nation, and there are big differences between major
very society has its very own political
two principalities were smaller and weaker
cities, regions and even rural areas. The major
structure and Romania is no excep-
than the neighboring kingdoms and empires
difference lies in the economic opportunities
tion. But compared to its smaller and
and, after less than two centuries, fell under
offered by regions or cities. Many experts say
the rule of the Ottomans.
that Romania has two very different sides –
more homogenous neighbors, Romania is a big and complicated country.
Historians in Romania say that Ottoman
one sophisticated and modern and the other
rule – and its control of the Black Sea – was
poor, isolated and increasingly frustrated
HISTORICAL FRACTURES
associated with a collapse of trading routes
due to the lack of opportunities. Over the last
Historically, nation building in Romania was
opened mainly by the Italian city-state of Ge-
couple of years, several studies have tried to
a long and difficult task as it meant bringing
noa and a collapse of resources and develop-
explain the persistence – or even the increas-
together three former countries with different
ment in Moldova and Wallachia.
ing gap – between the two very different
histories and social backgrounds.
Transylvanian cities remained strong, and
“Romanias”. “Romania’s transformation has
these different paths created a first fracture
been ‘a tale of two Romanias’ – one urban, dy-
documents, was a Hungarian province since
along the Carpathians: Moldova and Wal-
namic, and integrated with the EU; the other
the 11th century, and later an almost indepen-
lachia remained poorer and weaker than
rural, poor, and isolated,” World Bank experts
dent entity following the fall of the Hungarian
Transylvania.
said in a recent report called “From Uneven
Transylvania, according to first historical
Kingdom at the beginning of the 16th century.
The fracture was deepened in the 19th
Growth to Inclusive Development: Romania’s
The region fell under Austrian rule in the 18th
century, when Austrians begun to partially in-
century and was again part of the Hungarian
dustrialize Transylvania – and Bucovina, an-
half of the Austro-Hungarian Empire from
nexed in 1775 from Moldova – while Moldova
mists, Romania’s main historical burden is
1867 until 1918. The other major regions in Ro-
and Wallachia, united since 1859 to create
the partially unsuccessful attempt to become
mania – Moldova and Wallachia – were formed
Romania, remained dominated by agriculture
an industrialized nation. As a consequence,
much later, in the 14th century, following the
and a severe social divide. The social and
Romania’s prosperity is not equally shared, as
retreat of the Mongols from these regions. The
political fracture grew at the beginning of the
the bottom 40 percent is largely disconnected
Path to Shared Prosperity”. According to both historians and econo-
www.business-review.eu June 2016 2019 Business Review | May
COVER ELECTION STORY 25 14
from the drivers of growth. “Close to half of
tor” by many. But despite strong national
sioner and prime minister. Their electoral base
the people at the bottom 40 percent of the
GDP growth during the last couple of years,
is growing and the alliance is now officially
income distribution do not work, and another
the party is seen by many as being corrupt
the third largest party in Romania, with 22.4
28 percent remain engaged in subsistence
and having autocratic tendencies. The PSD
percent of votes – very close to PSD.
agriculture,” according to the World Bank
has fared worse recently – it ranked second in
report. However, development is spreading
the EU elections, with 22.5 percent of votes,
ALDE
rapidly from big cities in Romania to other
almost on par with USR-Plus Alliance, despite
The party of the former prime minister Calin
regions expanding the middle-classes in
good mobilization of its voters across the
Popescu-Tariceanu, a strong ally of the PSD.
the country and reducing poverty – and this
country.
It claims that it is liberal but has lost the
changes political bases as well. As in many
support of the European ALDE group, whose
other societies, economic development in
PNL
leader Guy Verhofstadt attended a rally of the
Romania seems to increase the support for
The National Liberal Party has a strong
USR-PLUS Alliance on May 24 in Bucharest.
new alternative, democratic movements and
voter base in Transylvania, Banat, Crisana
It was the big loser of the EU elections with
to weaken the attraction for extremist and
and northern Moldova, while it is weaker in
4.2 percent of votes, below the threshold of 5
autocratic leaders.
other regions. Many of its voters live in big
percent, and it will not have representatives in the European Parliament.
PRO ROMANIA The party is led by the former PSD leader and prime minister Victor Ponta, and capitalizes on the PSD’s declining support. Many of its voters are former PSD voters who are not pleased with its current policies, and it has even attracted a significant number of MPs who had been elected on PSD lists. It secured access to the European Parliament with 6.5 Moreover, Romania is now the only coun-
cities or developed regions but it has also
try in the region that still has an independent
a strong presence in many rural areas. Its
press and a vibrant civil society, and that is a
recent electoral campaign was mainly based
PMP
major advantage for the country, according to
on highlighting the PSD’s corruption – and
The party was founded by former president
UniCredit chief CEE economist Dan Bucsa.
PNL mayors’ success in developing cities like
Traian Basescu, and is seen as a party that
Oradea, Cluj, Alba Iulia, Suceava and Timiso-
depends on its leader – even more than other
POLITICAL SITUATION
ara. Socially, PNL voters are mainly from the
parties like ALDE or PRO Romania. Its voters
This is strongly reflected in the Romanian
growing middle-class cohort, but there are
are from various regions and social origins,
political arena. The major political competi-
also many farmers and state employees from
sharing an admiration for the controversial
tors have different voter bases.
regions in which PNL mayors have performed
former president, who was in office between
well. Final results indicate that PNL won the
2004 and 2014. The party also achieved its
EU election with 27 percent of votes.
goal to have representatives into the European
PSD
percent of votes, but is far from its ambitions.
Parliament, with 5.7 percent.
The Social Democratic Party, formed by the former members of the communist elite
2020 USR-PLUS ALLIANCE
following the collapse of the Communist
These newcomers to the political arena bene-
UDMR
regime, has been the main ruling party for
fit from the PSD’s controversial decisions and
The party of the Hungarian minority in Ro-
the last three decades. It is seen as the party
corruption. Seen as grassroots, anti-systemic
mania during the last three decades. It now
of the state employees, pensioners and poor
movement, they try to capitalize on many
appears to be losing voters, especially among
regions – and these are still its main voter
Romanians’ distrust in the old, traditional
the educated Hungarians living in big cities,
bases. Geographically, most of its voters are
parties. They are supported by many middle-
due to its close ties with thePSD, but is still
in Wallachia and parts of Moldova, while it is
and upper- class professionals, entrepreneurs,
popular in the two counties populated mostly
much less attractive in Bucharest, Transylva-
freelancers, living mainly in big cities like
by Hungarians – Harghita and Covasna.
nia, Banat and Bucovina. Socially, it is still an
Bucharest, Cluj, Timisoara or Iasi, as well as
attractive party for the generations that lived
in the diaspora. As a bottom-up movement,
the threshold, but it was in the middle of a
under the Communist regime and moved
the USR lacks a strong leader, a problem it
huge scandal following the elections as jour-
from poor rural areas to towns and cities –
has partially solved by allying with PLUS, the
nalists found out that it was voted in PSD-con-
and this was largely seen as a “social eleva-
party of Dacian Ciolos, a former EU commis-
trolled areas where there are no Hungarians.
UDMR got 5.4 percent of votes, just above
www.business-review.eu Business Review | June 2019
26 EQUITY FUNDS
Romania needs success stories to catch the eye of investors Private equity is an alternative form of financing for companies that fills the gap between bank loans and listing on a stock exchange market. The investors also make sure that the company will perform after the funding and so are closely involved in the company’s management team. By Aurel Dragan indicator of Romania’s attractiveness and its good position on this market. “In Romania there are a lot of opportunities and the local private equity market has started to develop. Morphosis, for example, is just a small cap investment fund and we deploy between EUR 5 and 10 million per transaction. And in the food and health area in particular, it is not about leverage and financial engineering, is about value-add into the companies. That is why we want to make this distinction between capital and smartcapital – bringing into the company value, strategic focus, real opportunities. What is core to Morphosis is that we are looking for companies that have the capability to become Andrei Gemeneanu, Morphosis Capital
T
national or regional champions,” said Andrei Gemeneanu, managing partner at Morphosis Capital.
apping funds from the private equity
approval committee. In the end, only two
market cannot be done just by asking.
will receive funding. This is the way private
It involves market and business analy-
equity funds work all around the world. Of
CENTRAL EUROPEAN MARKET IS STABILIZING
sis, due diligence, changes in the shareholder
course, the industry is still in the early stages
The private equity market in Central Europe
structure, and new management teams. It is a
in Romania with just a few local private eq-
is stabilizing after an intense trading period in
process that can last several months or a year.
uity funds, like Morphosis Capital, and some
2017, marked by fundraising and significant
regional ones, like Enterprise Investors.
outflows in some markets, according to the
In essence, this funding is done by investors who are interested in the company. Their
But opportunities are starting to appear
Deloitte Central Europe Private Equity (PE)
profit is the dividends they receive and the
and this will attract more private equity
money they get by selling their packages for
funds, even big ones from Western Europe,
more than the purchase price. This difference
say players. Over the past year and a half, a
decline to 105, reversing the 18-month growth
between the two values (acquisition price and
third of the transactions in the country had
trend between autumn 2016 and spring 2018.
sales price) is due to the active involvement of
as an actor an investment fund. This is a good
The level of confidence, as presented in the
survey. The confidence index accelerated its
investors in the company’s activity, increasing its value and, implicitly, the share price.
these, around 30 are chosen for a secondary
“IN ROMANIA WE PROBABLY HAVE TWO OR THREE SERIOUS PRIVATE EQUITY FUNDS, WHILE IN USA THERE ARE 2,300 ACTIVE PRIVATE EQUITY FUNDS. IN ROMANIA THERE ARE ALSO SOME FUNDS FROM POLAND OR LONDON THAT LOOK FOR OPPORTUNITIES ON A SPECIFIC DEAL, BUT NOT MUCH ELSE,”
analysis and further research. And around 10
ANDREI GEMENEANU, MANAGING PARTNER AT MORPHOSIS CAPITAL
The work of a private equity manager is not related only to the investments he or she manages to make. In one year, a private equity manager analyzes about 1,000 businesses. Of
enter into the next phase and reach the fund’s
www.business-review.eu Business Review | June May 2016 2019
EQUITY COVERFUNDS STORY 27 14
Deloitte CE Private Equity Confidence Sur-
in 2018, including transactions in Romania,
market leaders. Although the M&A market in
vey, mainly reflects economic expectations
such as the sale of the Urgent Cargus courier
Romania continues to be dominated by stra-
and other variables such as the outlook for
service to Mid Europa Partners by Abris.
tegic players, acquisitions by private equity
market activity and the relationship between transactions and portfolio management. Most of the professionals in the Central European private equity market (75 percent)
“In Romania, the activity of private equity firms is similar to that of the Central
reached record levels in 2016 and 2017. They slightly decreased last year, but we are still
European region. I expect a large
optimistic about the outlook for 2019,” said
number of transactions to
Ioana Filipescu, corporate finance partner at
be made by private equity,
Deloitte Romania. Taking into account the
expect activity in the re-
either as buyers or sellers.
announced value of trades in 2018, strategic
gion to remain unchanged,
Large private equity firms
investors were involved in 56 percent of the
while 11 percent predict an
are planning to enter the
transactions, while private equity accounted
Romanian market as they
for 39 percent of the volume reported, accord-
increase in activity, down from a third in the summer of 2018, suggesting more prudent behavior on the part of investors, due to economic and
see our country as a good alternative for investment in the region. Such investments will definitely be influenced by the
ing to an analysis by Deloitte of the local M&A market. Yet, seen from the private equity fund side, the market is not as good at it seems to consultants.
political uncertainty. Almost three-quarters
economic conditions and the local legislative
“In Romania we probably have two or
of those trading on the Central European
climate,” said Radu Dumitrescu, transaction
three serious private equity funds, while in
market (73 percent) expect the current
support services partner at Deloitte Romania.
USA there are 2,300 active private equity
economic environment to remain the same,
In Central Europe, where strong GDP
funds. In Romania there are also some funds
while the vast majority (93 percent) trust
growth has taken place, traders are expected
from Poland or London that look for op-
that it will be able to attract the necessary
to continue to focus on new investment
portunities on a specific deal, but not much
funding for transactions, and liquidity will
opportunities. Most investors expect the
else. We need success stories, like Profi retail
remain unchanged. Transaction profession-
average level of transactions to remain
chain, to show that companies in Romania
als in the region expect more buy than sale
constant. “In general, private equity firms
can go through the full cycle of investment.
transactions in the coming months. Outputs
are interested in medium and large-value
And when foreign funds see those success
from certain markets were also considerable
transactions, when they buy local or regional
stories, they will come,” said Gemeneanu.
www.business-review.eu Business Review | June 2019
28 TECH
From home to work, IoT is steadily reshaping society The Internet of Things (IoT) is expected to be a game-changer in the coming years. However, commentators say it is slowly entering our lives already without our even realizing it, the way the cloud did many years ago. By Aurel Dragan experts say one of the ways this can be done is through the Smart Grid. Romania has set a goal to reduce energy consumption by 19 percent by 2020 which is possible only with a Smart Grid, which means 500,000 smart meters to be installed by Electrica by 2020. Among the suppliers of smart metering and energy efficiency technologies are Energobit, Eaton Group, Adrem Invest, Phoenix Contact Group, Eco Therm Services. Romania has 9 million electricity customers, of whom 8.38 million are households; 3.03 million natural gas customers, of whom 2.85 million are households; and 1.56 million heat customers. This means a total of 13.6 million consumers that need to be connected to a smart grid using a smart meter, all being IoT devices.
NEWCOMERS TO THE MARKET Recently, Sigfox, a global leader in IoT technology, launched its services in Romania through a partner at Simple IoT. Romania joins the 60-country network in which Sigfox is operating. The IoT market is bigger than it seems at first glance
C
A French company set up in 2010, it is the world’s largest IoT network in terms of covered markets, its wide range of applicability
loud as a technology started entering
how much energy or other utilities one is
and its number of dedicated device manu-
the lexicon a decade ago, sparking
using and also to collect data from a distance.
facturers. Across the 60 countries, Sigfox will
fears for the security of personal
Smart meters are devices for measuring the
serve IoT connectivity needs in territories
data. But the same people were using Gmail
usage of certain utilities and other consum-
with a population of over 1 billion people.
and other free email providers long before
able resources and transfer the data through
Nowadays, the company’s ecosystem
that without realizing that they were using
a wireless connection. Smart meters entered
includes more than 700 devices from over
the cloud to store their data and emails. The
Romania more than a decade ago for the con-
650 companies, and the number is increas-
same situation we see now for the Internet
sumption of water and centralized heat and,
ing exponentially. The network operates in
of Things (IoT). While 5G technology is sup-
more recently, for gas and electricity. And it
the free spectrum made available for use by
posed to raise the levels of IoT devices to
is not at small scale, as there are millions of
European regulations, and all operators in
tens of billions, we already have and use the
smart meters across the country.
the Sigfox network are interconnected in a
technology in our homes. Smart-metering is a way to keep track of
The Romanian Energy Strategy cites energy efficiency as a main priority and
single network. Among the company’s global investors are top companies such as Sam-
www.business-review.eu Business Review | June 2019
TECH 29
sung, Salesforce, Intel Capital, Total, Engie,
CEO & Founder of Simple IoT. The Simple
as more and more companies are realising the
Eutelsat, Telefonica and Mitsubishi Heavy
IoT network currently has coverage in major
importance of our cost-effective customiz-
Industries, while worldwide customers us-
cities in Romania such as Bucharest, Ploiesti,
able solutions. Vodafone Romania continues
ing Sigfox’s connectivity solutions include:
Constanta, Brasov, Ramnicu Valcea, Sibiu,
to enrich its IoT solution portfolio in order to
be adopted,” said Emma Park, VP Europe at
Cluj-Napoca, Timisoara and Arad, and by the
efficiently respond to the market’s needs and
Sigfox.
end of the year, the IoT operator expects to
to improve our customers’ competitiveness
cover more than 50 percent of the popula-
and performance,” stated Eduard Cucu, high
tion.
corporate sales director, Vodafone Romania.
EMOBILITY AND SMART HOME
and eMobility are just a few of the applica-
Groupe PSA, Michelin, Total, Free, Securitas, Bosch, Louis Vuitton, Nestle and Danone. “By 2030, we estimate that all objects containing at least one electronic circuit will be connected to the internet in one way or another. These are objects that will be found in every aspect of our everyday lives. We can state that seven out of ten IoT connectivity needs today can be solved using Sigfox. Romania’s potential for this market is very high and we estimate that over the next five to ten years over 20 million devices connected via Sigfox will
According to company representatives, Simple IoT solutions have a high applicabil-
Smart grid, smart metering, smart home,
ity in various areas such as transport and logistics, utility monitoring through smart metering, smart buildings, retail and cold-
A Vodafone Barometer shows that a third
tions IoT can provide. And 5G connections
chain, insurance and e-health, agriculture
of businesses worldwide are using IoT and
will enhance the volume of data supported
and the environment, smart cities, etc. The
70 percent of these adopters have moved
by the network, increase reliability and offer
benefits of using the network include accu-
beyond the pilot stage. Also, 95 percent
near-zero latency, say pundits. But people
rate business information and data, increas-
of adopters are seeing the benefits of this
don’t have to wait for 5G in order to develop
ing business competitiveness, expanding
technology as it moves into the mainstream.
IoT apps and services. Today, over 6 billion
business, improving customer experience,
Case studies from different industries, from
devices are connected through a telecommu-
and automating business processes.
medical exoskeletons to connected
nication network all over the world
“The IoT market is bigger than it seems
tires, show that IoT can im-
and this is only 1 percent of
at first glance. Customers’ needs are very di-
pact businesses regardless
the total devices that
verse and can be found in a wide range of ar-
of size and sector.
eas. The first projects launched by Simple IoT
In Romania, the
could be connected by IoT. For businesses es-
in Romania were based on two fundamental
operator has imple-
customer needs: the first access to informa-
mented IoT solu-
pecially (rather than
tion that they could not obtain or which had
tions in areas such
households) IoT can
a very high production cost while the second,
as retail, energy,
bring operational
with a wider impact, is the efficient use of
utilities, automo-
efficiency and even
human resources, especially in the context
tive, transport and
predict machine fail-
of the difficulties of finding workforce, in
logistics. Last year it
activities relevant to business and the reliev-
launched NB-IoT (Nar-
ing of repetitive and simple activities. The
rowBand IoT), a standard
connectivity offered by us is the best solution
developed to enable a wide range
for situations where the customer needs
of cellular devices and services. NB-IoT
remains a challenge. Collecting and analyzing
specific and accurate information from his
uses a subset of the LTE standard, but limits
the data from the connected devices is also
or her equipment, but also a long battery life
the bandwidth to a single narrow band of
important, requiring specialized apps. But
with year-round autonomy as well as a cost of
200kHz. “Since the last IoT Barometer, we’ve
experts say it is clear that IoT is here to stay
ownership and reduced use,” says Dan Vlad,
seen an increase in IoT adoption in Romania
and reshaping the way we do business.
ure before it happens. The technology is still in the early stages and building and maintaining IoT systems
www.business-review.eu Business Review | June 2019
30 INTERVIEW
Vodafone launches first 5G network in Romania After launching the first local GPRS services in 2001, first 3G services in 2005 and first 4G mobile data network in 2012, as well as the first NB-IoT network in 2018, Vodafone is now pioneering 5G. Business Review talked to Catalin Buliga, technology director at Vodafone Romania, to hear the lowdown on the latest launch. By Aurel Dragan 3.5Ghz band) and offer a data
ABOUT Catalin Buliga, technology director at Vodafone Romania He joined the Vodafone team back in 1998, as network operations center (NOC) engineer. Following ten years at the first mobile digital network in Romania, he held various positions at Liberty Global. In 2015, Buliga returned to Vodafone, where since 2016 he has coordinated a team of hundreds of engineers who maintain the continuous development of the network.
endpoint rate of approximately 600Mbps and delays of 10-11ms. The 5G phone used to
The exact number of 5G radio cells that we intend to activate by the end of this year is
launch the Supernet 5G
confidential, but this year we set out to cover
network has the ability to
the busier areas of Bucharest and several
simultaneously use both
other big cities in Romania. We will continue
the 5G radio cell and our
to develop Supernet 5G network coverage, but
4G radio cells, giving the
the rhythm of expansion and investment will
end user a total data rate of
depend on the degree of customer adoption
1Gbps (at the launch event,
of this technology and the cost of acquiring
we achieved a speed of
the additional 5G spectrum required.
955Mbps).
When will it be available to consumers? The Supernet 5G network is already available to our customers. Users will need to purchase a 5G smartphone as soon as they are launched commercially in Romania, but Vodafone customers can already sign up on our website to be the first beneficiaries of these services. We
Vodafone has announced the first 5G connection. What are the technical characteristics of this connection and what are its capabilities?
expect 5G phones to be commercially available in Romania this summer.
We have launched the Supernet 5G network,
What conditions must be met by the client to access the 5G network?
which is an upgrade to our Supernet 4.5G
Any Vodafone customer who owns a 5G certi-
network. Currently, Supernet 5G is avail-
fied smartphone commercially available in
able in some busy areas of Bucharest, but we
Romania can enjoy the capabilities of the first
will extend 5G coverage in other parts of the
5G network in Romania, Supernet 5G .
capital as well as other major cities around the country. Our 5G radio cells operate in the 5G spectrum we have now (40MHz in the
How many 5G nodes do you intend to open by the end of the year?
Vodafone Romania, one of the major mobile operators, has launched the first 5G network, namely Supernet 5G. The connection is ready to give access to the latest technology and Vodafone customers will be the first to enjoy the capabilities of the network as soon as 5G handsets are available on the market. This move makes Vodafone Romania the first network in the country to provide Romanians with the latest global technologies. Vodafone continues its 22-year history in the country serving citizens, businesses and other social and economic actors. Through this launch, the operator continues its mission to connect for a better future enabling everyday a high-performance digital society for Romania. The company is committed to contributing fully to Romania’s digital strategy in an era of interconnected people and devices, where trust is as important as speed. Vodafone will continue to consolidate its network leadership and to remain the partner of choice for the entire Romanian society and economy when it comes to innovation and cutting-edge technologies for a better connected future.
www.business-review.eu Business Review | June 2019
PARTNER CONTENT 31
Three King’s Oak students win prestigious Cobis Student Achievement Awards King’s Oak students Andrei Baltac, Ava Scrieciu-Vlanga and Aidan Saroudis have won extremely prestigious COBIS Student Achievement Awards. COBIS (Council of British International Schools) only award this for achievements that are exceptional and unique that fall into either of the categories below: • Outstanding academic achievement
• Significant contributions to the school’s/community’s charity activities
• Sustained, high level contributions to the wider life of the school
• An act of bravery in the school/community.
Andrei Baltac took his first French exam in
Apart from being a hard-working student, Ava is
Aidan Saroudis came 1st place out of over
June 2015. One year later, Andrei went for
a fantastic example of compassion and dedica-
15,500 entrants in the international mental
the A1 exam, which he passed successfully,
tion when it comes to helping the less fortunate.
maths competition SuperTmatik. Aidan dedi-
surprising everybody with his high marks at
She won’t hesitate when somebody needs a
cated hours of practise in and out of school
such a young age. In 2018, Andrei passed both
nice thought or help. She is caring and does her
in preparation for the contest which was
French A2 and Spanish A1 exams, continu-
best to help everybody around her as much as
held in school on an online platform. He had
ing the series of great results in the field
possible. Outside school, Ava is involved in vol-
to answer various mental maths questions
of Foreign Languages. It is not unusual for
unteer work as part of the “Inocenti” foundation
against various online opponents as quickly
children who study languages to take these
helping and supporting less fortunate children
as possible to progress through the stages.
exams. What is amazing though is the very
who have to be in hospital for a long time. Ava
His overall result of 1st place is nothing short
young age that Andrei passed these exams
impresses everybody with her strong will to
of extraordinary!
at: the first one at 6 and the last two when
volunteer and help as much as possible, despite
he was only 9 years old. Aged 10, Andrei is
her young age, as she is only 9.
preparing now for the B1 French DELF exam, comparable to the GCSE level, and the CEFR
72, Petre Aurelian St., Bucharest 1
A2 Spanish exam.
www.kingsoakschool.ro
www.business-review.eu Business Review | June 2019
32 STARTUPS
Driving innovation: Startups moving to ease Bucharest’s traffic With Bucharest among the five cities with the worst traffic congestion in the world, both local and international mobility startups are trying to alleviate the jams with a wide array of options that include sharing systems for electric scooters, cars and bikes. By Ovidiu Posirca their back due to the improper management of the city,” Dan Nechita, co-founder and president of Smart Everything Everywhere, an organization promoting digital transformation in Romania, told BR. He says that innovation alone is not enough, as cities also need an efficient public transit system, and policies that encourage walking, biking, ridesharing or other alternatives to driving. Entrepreneur Bogdan Enoiu, owner of an advertising group in Romania, has recently launched an e-scooter rental service called Flow. He has invested EUR 400,000 in the company so far and expects to increase the figure to around EUR 1 million. “I started from this idea: how to ease the traffic? Traffic comes from busy office locations, from corporate workers taking their kids to school and then returning to the office. When you get in front of the office building, you have the docking system. (…) When a
T
The total Romanian private tech-enabled urban mobility market in Romania will reach around EUR 1 billion
traffic jam builds up, you leave the car and use the e-scooter,” said Enoiu in an interview published by media portal paginademedia.
he ecosystem for entrepreneurship in
to bike-sharing and more – have actually
ro. The service has initially been rolled out in
the mobility field is strong in Europe,
sprung up from this situation as much-need-
the first district of Bucharest, in locations that
with 3,057 startups that have received
ed solutions and have become a core element
have a lot of office buildings. The entrepre-
more than USD 7.5 billion in funding to date,
in the urban landscape – a clear sign of their
neur wants to reach a fleet of 2,000 e-scooters
according to data from UVC Partners, the
success in providing a good mobility service
throughout Bucharest, Cluj and Timisoara.
venture capital firm.
given the circumstances. There is still a long
Enoiu is one of the associates in the company.
Bucharest is already becoming a test
way to go, but private initiatives with support
Another team of entrepreneurs has
ground for many entrepreneurs looking for a
from authorities seem to be the best way
launched a separate e-scooter rental service
big challenge.
ahead,” entrepreneur Mihai Cosmin Rotaru,
called Wolf-e Rides, while American start-up
founder of taxi-hailing app Clever Taxi, told
Lime is also planning to roll out a service for
BR.
e-scooters locally.
The Romanian capital has a traffic congestion level of 50 percent, meaning that traffic jams keep commuters stuck for half as much
Although mobility startups can bring inno-
Elsewhere, Bucharest’s bike-sharing sys-
extra time as necessary for their journeys, ac-
vative ideas onto the table to solve congestion
tem has remained somewhat underdeveloped
cording to a ranking by TomTom, a developer
and traffic problems, they can be only part of
due to the insufficient number of cycle lanes
of navigation technology. Bucharest fares
the solution.
in the city. Other smaller players are operating
worst in Europe for this indicator. “Mobility startups – ranging from e-hailing
“Currently, mobility startups in Bucharest are swimming with one hand tied behind
car sharing systems. However, the growth potential for the mobility industry is significant.
www.business-review.eu Business Review | June May 2016 2019
COVER STARTUPS STORY 33 14
this field, but
unicorn is waiting to be born out of this in-
the bill has been
dustry,” predicts Nechita of Smart Everything
stuck in the ap-
Everywhere.
proval chain.
MOBILITY STARTUPS CHASE PROFITS
ENTREPRENEURS COULD ACCELERATE INVESTMENTS IN SMART CITIES Startups in the mobility field could help cities become more connected and ease the pres-
Ride-sharing
sure on road infrastructure. Analysts say they
players Uber
could also play a strategic role in the develop-
and Lyft went
ment of cities in Romania under the smart
public this
cities principles. “When you are faced with a problem and
Nechita of Smart Everything Everywhere
spring on the US stock exchange, with shares
suggested that Romania’s strong presence in
of both companies going into the red shortly
limited resources (in this case infrastructure)
the automotive field could help the market
after the Initial Public Offering. Uber was able
the only way around it is optimizing what you
become more competitive. The country
to raise USD 8.1 billion in the IPO, valuing the
have and creating cost-efficient alternatives.
hosts two car manufacturers, Dacia and Ford,
company at USD 82 billion. Meanwhile, rival
This is what value creation looks like and is
Lyft, which listed in March, reached a valua-
the essence of innovation. Smart cities are the
tion of USD 24 billion.
only short-term solution we have and fortu-
alongside a plethora of car components makers. “This creates a competitive environment, where mobility startups can thrive and test their products and services on a mature market, access financing, receive mentoring and access to testing facilities, and gain important business fast. Second, Romania’s infrastructure is poor and underdeveloped, so the overall need for mobility solutions, for both citizens and businesses alike, is huge. Finally – and this is an important component, especially from here on – European funding for mobility solutions, startups, research and development, and innovation is bound to increase,” says Nechita. It’s still unclear what the final mobility mix will be for Bucharest, but the free market is best at deciding this, adds Rotaru. He estimates that the total Romanian private tech-enabled urban mobility market in Romania will reach around EUR 1 billion on the short term, not counting public transportation. “Competition is high,
Shares in Uber and Lyft were down by 7
nately we have the talent and the pressure to
percent and 25 percent, respectively, from
create them. Hopefully there will also be sup-
their IPO prices as of May 19. Both companies have continued to lose money and getting into the black based on their curprove a challenge in the
concludes Nechita.
high dynamic for solu-
mentators. However, these
tions and pricing – and the
are two of the pioneers in
authorities should work to
an industry that took off in
recently,” says Rotaru. He is referring to the
Having the right regulation in place to support innovation is crucial, as these startups could accelerate the transition to smart cities,
coming years, say com-
we have unfortunately seen quite
benefit from them in the end,” says Rotaru.
rent business models could
which means there is a
encourage this, not limit it as
port from the proper authorities, as they will
the past decade in parallel with
Municipalities across Romania have started to implement smart components in cities, ranging from online parking systems to air quality measurement and more energy efficiency in the public lighting system.
the advent of the smartphone.
Throughout all this development, the local
“As digitalization and the digital transfor-
startup ecosystem is starting to enhance the
ongoing struggles ride-sharing operators in
mation of various industries happens at an
digital component of cities, with mobility
Romania face to be regulated. The Romanian
accelerated pace, novel mobility solutions
being only one of the components that could
authorities came up with draft legislation in
will be increasingly successful; the next
transform urban areas going forward.
www.business-review.eu Business Review | June 2019
34 STARTUPS
Charging local startups through the world’s most powerful laser Just 10 kilometers from downtown Bucharest, hundreds of scientists have started working on the most powerful laser in the world, a unique feat that could also supercharge the local ecosystem of startups and create a “Laser Valley” for entrepreneurs. By Ovidiu Posirca
L
ocated in Magurele, the Extreme Light Infrastructure Nuclear Physics (ELI-NP) project was launched this
spring following an investment of more than EUR 300 million. In March, the laser reached record power of 10.88 petawatts, a milestone in the ongoing research activity. “We will use this laser to answer two major callings of ours: curiosity, to understand better what is happening with the universe around us; and creativity, to develop something through which humankind can live better,” said Ioan Dancus, head of the laser group, during the launch event. The potential development path of the project has been analyzed by experts at the World Bank in a report on the creation of a Laser Valley near Bucharest. It states that about 225 researchers and 70 technicians are needed to operate the equipment for the ELI-NP, while annual operating costs are estimated to be about EUR 29 million. Under the basic scenario, the ELI-NP will be an “enclave” and the science infrastructure functions will have minimum interaction with local organizations. In a second scenario, there would be a “knowledge ecosystem” based on strong relations with the local research community and universities. In the “innovation ecosystem” scenario, the outcome “is the integration of the new knowledge created by and around the ELINP and its exploitation for value creation through commercialization and linkages.” Tech entrepreneur Mihai Cosmin Rotaru says that the core community at the ELI-NP will be research-oriented, quite a few levels away from marketable solutions where entrepreneurs could play a bigger role. But, he says
About 225 researchers and 70 technicians are needed to operate the equipment for the ELI-NP
there is a big opportunity for the two sides to
www.business-review.eu Business Review | June May 2016 2019
COVER STARTUPS STORY 35 14
team up. “As with other global R&D centers
to advise them on what they need to grow,
Magurele area. Both public research orga-
(like Boston), this opens up opportunity for
and do this in a transparent, conversation-
nizations and firms in Bucharest are much
supporting technologies and entrepreneurs
oriented manner,” says Rotaru.
more competitive than elsewhere in Roma-
building them. But this buildup will take a lot of time and the proper funding, operational
Meanwhile, World Bank experts suggested
nia,” wrote the World Bank experts.
that attracting startups in Magurele needs
transparency and
long-term invest-
predictability of the
ments and funding
CERN HAS CREATED ITS OWN ACCELERATOR FOR STARTUPS
ELI are key for this,”
from multiple sourc-
A functioning ecosystem that combines
Rotaru told BR.
es, including money
startups and a research project is already
from the state and
developing at CERN, the operator of the
local budgets.
Large Hadron Collider particle accelerator
He adds that Silicon Valley was
“The vast major-
also created by put-
near Geneva. Researchers working there have
ting together science
ity of large infra-
discovered the Higgs Boson “God particle”.
brains and visionary
structure invest-
Also, scientist Tim Berners-Lee founded the
entrepreneurs.
ments in Romania
World Wide Web while working for CERN in
in recent years have
1989.
“It’s too much to
been undertaken
hope for the same
The research center has now started to in-
thing here, but still very good things can
with the help of EU funds. In the case of
vest in startups and has created its own accel-
come out of it,” says Rotaru.
Magurele, an integrated territorial instru-
eration program. CERN has also launched a
ment (ITI) would be most appropriate, as it
knowledge transfer division, aiming to bring
project in Magurele is available for develop-
provides a platform that enables multiple and
together engineers and financers, as well as
ment. According to a PwC report, the total
complex interventions,” said the World Bank
physicists and marketers. The research center
land surface in this location stands at 4,500
in its report on Laser
has established eight
hectares, while the nearby area that could be
Valley.
business incubation
The land for a massive expansion of the
explored for the Laser Valley project could
The ITI is a tool
facilities that assist
reach 20,000 hectares. The main challenge is
introduced by EU
entrepreneurs and
the fragmented land in the ELI-NP area and
authorities that aims
small businesses in
its ownership structure.
to make it easier
taking to the market
to run territorial
the technology and
researching and observing the results of their
strategies that need
expertise developed
work is essential to trigger the chain reaction
funding from differ-
by CERN. The cen-
that will transform innovation into a prod-
ent sources.
“Being present near the teams who are
uct,” Paul Brie, president of Spherik Accelerator and CEO of TeleportHQ, told BR.
ters are located in
Magurele already has the highest scientific footprint in Romania as it concentrates five national R&D institutes, one Faculty of
Western Europe in countries such as Austria, France, Italy and the Netherlands. CERN technologies and knowhow can be
AUTHORITIES COULD PLAY A ROLE IN LASER VALLEY
Physics and two engineering companies. The
included in medical and biomedical tech-
research centers cover the following special-
nologies, aerospace, industry 4.0 or other
The development of the ELI-NP was backed
ties: nuclear, laser, plasma & space sciences,
emerging technologies. The center provides
by EU funds, and
material physics,
royalty-free licenses to companies that agree
commentators say
optoelectronics, and
to further develop technologies resulting
that the support
seismology.
from its lab research, according to the World
Investments
of the Romanian
Bank.
authorities is also
in the Laser Val-
In Romania, the ELI-NP has just started
needed to create a
ley project could
its main research activity, but commentators
sustainable ecosys-
generate an annual
say it’s never too late to start a conversation
tem at Magurele.
contribution of EUR
about the way in which entrepreneurs could
500 million to
join scientists in developing a Laser Valley
Romania’s GDP and
near Bucharest.
“This usually means making things simpler, leaner and less bureaucratic,
some 12,000 jobs, according to a PwC report
and it’s actually rarely about the money. We
published in 2016.
have had one-off wins in terms of startups;
“Since Romania’s research and innovation
Brie of Spherik Accelerator concludes, “Ecosystems bring the fluidity and the context for organic collaborations, which in
what we need now is an ongoing trend.
performance is highly concentrated in the
the end might be even more favorable for
It would be great if the authorities would
Bucharest-Ilfov region, there scope for such a
triggering associations between teams first,
embrace more people from the private sector
spillover to occur, given the proximity to the
and later on between startups.”
www.business-review.eu Business Review | June 2019
36 TOURISM
Passport to paradise: top destinations for summer 2019 What keeps you going, working eight hours a day, Monday to Friday, week after week? Yup! The thought that for a week or two in the summer you’ll relax in the sun on a Greek island, jet away to an exotic paradise, or simply wander off the beaten track. By Paul Barbu is a religion. Walk the old city, discover its churches and houses, discover the surprising Muslim neighborhood, spectacularly built on a steep hill, and enjoy this friendly city,” recommends tourism consultant Cezar Dumitru. Another cheap and beautiful destination is Chisinau, Moldova. The city does not really boast incredible architecture – although you might come across a few highlights – but is about relaxing, taking a stroll, eating fantastic food and enjoying good wine. In fact, the most spectacular sights in Moldova are around wine – two real underground cities where wine is stored for ages, Cricova and Milestii Mici. Tbilisi is probably one of the best ten capitals in Europe
Dumitru also tips Tallinn, Estonia. “Want to play Hansel and Gretel? Go to Tallinn, a city
I
linn has two old towns – the merchants’ one
started to look beyond the traditional
CHEAPER AND MORE UNUSUAL DESTINATIONS
choices of soaking up the sun on a Turk-
With summer approaching, consumers are
Town) – delightful old cobbled streets, fan-
ish or Greek beach, and have started showing
turning their thoughts to new destinations,
tastic views (climb the City Hall or Cathedral
interest in going further afield, even as far as
new horizons, and new places to discover.
tower), excellent restaurants and markets. In
getting a taste of Egyptian culture. That’s why
And Europe is rich with such travel opportu-
some areas, you might feel lost in a maze, but
the summer now begins somewhere in April
nities. If you have already visited Barcelona,
don’t worry – it is a delightful maze,” he says.
and ends in November.
Rome, Amsterdam and Vienna, what other
n the last few years Romanians have
“Antalya is on the roll, but it can’t be said to be unusual. Antalya has been fashionable for several years, and from one year to an-
which looks like it’s made of gingerbread. Tal(Lower Town) and the nobles’ ones (Upper
Outside the old town, there is an Imperial
hidden gems can be seen without emptying
Palace of the Russian tsars and one of the nic-
your wallet?
est Marine Museums in the region (including
“Tbilisi, Georgia, is probably one of the
military vessels for fans). It is an extremely
other, demand for this destination is growing.
best ten capitals in Europe. Since Tbilisi
green city, so when the sun shines you feel
Egypt is another desirable destination and
is now connected directly to Bucharest by
like you’re in a wonderland. For a bit of a
falls into the least commonplace through the
plane, you can discover this true gem. Built
change, take a ferry and in two hours, you are
unique experiences it offers: contact with a
around a river, fully using the hilly neighbor-
in the more austere, but equally interesting
culture different from ours, the opportunity
hood, Tbilisi offers three generations of won-
Helsinki, the capital of Finland.
to get to know the history of ancient Egypt
derfully restored architecture – the traditional
and so on. Budgets for vacations like these
18th- 19th century old city which amazingly
are, on average, EUR 400-450 per person for a
resembles traditional Balkan architecture, the
LUXURY TRIPS – THE EXOTIC THAT WE ALL DREAM ABOUT
package that includes seven nights’ accom-
Imperial Tsarist Russian grand avenues and
“At Eturia we have prepared a selection of
modation and charter flight,” said Raluca
the gloomier, but equally impressive, Soviet
amazing traveling destinations: exotic beach-
Hatmanu, marketing and communications
avenues. The food is excellent and the wine
es like the Seychelles, Mauritius, Zanzibar and
director, Christian Tour.
is divine – wine in Georgia is not a drink, it
the Dominican Republic and destinations that
www.business-review.eu Business Review | June 2019
TOURISM 37
are perfect for interesting tours like China,
EUR 5,000 per night for the whole property.
perience new destinations, new resorts, and
Peru, Argentina, Brazil, Madagascar, the USA
However, there are tourists for whom luxury
possibly new hotels every year.
and Malaysia,” said Daniela Shah, co-owner
is linked to an experience, like staying in a
of Eturia.
lodge in the Amazon, or a helicopter ride or
to the large-scale introduction of holiday
court-side tickets to the Super Bowl. And Ro-
vouchers. From my point of view, for this
manians are no exception to that,” said Pascu.
reason, the 2019 summer holiday season on
The cost for a seaside holiday is about EUR 1,400 per person, all inclusive. For a tour prices start at EUR 1,600, depending on the
Romanian tourists tend to have two
destination, and everything is organized, you
separate approaches to what it means to have
only have to enjoy the journey.
a luxury holiday.
“Club Eturia Traveller members appreciate
medium-high one,
holiday that suits them perfectly. Eturia offers
where location is
both a wide range of vacations, in more than
key, and most such
100 destinations, and a team of experts that
vacationers prefer
travel constantly and knows exactly how to
five-star plus resorts
customize every holiday for every traveler.
in Turkey or even
Our clients are interested in authentic jour-
intercontinental
neys, they like to travel off the beaten track
destinations like the
and really discover a destination, with its
Dominican Republic,
culture and people,” said Shah.
Thailand, Mexico
the last 15-20 years. Holiday vouchers have
and Mauritius. Prices
in high season because good weather is es-
are comparable even
sential, and it is also important to them how
though one is in Eu-
many hours they have to spend on the plane.
rope and the others
They pay attention to where the hotel is locat-
are 6,000 km away.
ed and the ratings received by the locations.
the domestic tourism side may be the best in
One approach is the
custom-made services, because they want a
In general, holidaymakers prefer to travel
“Domestic tourism has grown a lot thanks
greatly stimulated the influx of tourists to
The second approach is the ultimate luxu-
Romanian destinations, especially at the
ry holiday which includes private transfer to
seaside, followed by spa resorts and moun-
HIGH ROLLERS’ HOLIDAYS
and from the airport, business or upper busi-
tain resorts. For traditional holidays, over
Acording to Razvan Pascu, marketing tourism
ness class tickets, the best accommodation
July-August, the occupancy rate is very high,
consultant, when it comes to tourism, luxury
possible and Michelin-starred restaurants.
with many Romanians making reservations
For those seeking to combine a perfect
months in advance,” said Traian Badulescu, tourism consultant.
location with nature and panoramic
NORTH AFRICA – THE NEW GREECE
views, activities
Romanians are now beginning to venture
and experiences as
back to destinations in North Africa, which
well as fine dining,
have become safe again, the political situ-
Pascu recommends
ation having calmed down, and tariffs are
the Seychelles, the
lower than in other traditional destinations.
Maldives and the big
For this year, the major Romanian tour
metropolises of the
operators are organizing charter flights from
world: New York, To-
several cities, such as Bucharest, Cluj Napoca,
kyo, or Los Angeles,
Timișoara, Iași, Targu Mureș, Arad, Oradea,
where you can have
Suceava, Bacau, Baia Mare and Craiova.
a true gastronomic
Turning to tours, Romanians typically
is not necessarily connected to distance, and
and luxury holiday combined with shopping
choose, depending on their budget, cultural
in his opinion is the most complicated thing
and state-of-the-art hotels.
circuits in European countries, the most popular being Greece, Italy, Germany, Austria,
to define.
THE ROMANIAN TOURIST GAINS A THIRST FOR ADVENTURE
France, Spain and the United Kingdom, cul-
where the average price per night was more than EUR 1,000. And I have seen incredible
The profile of the Romanian holidaymaker
– Israel, Jordan and Egypt – and, for distant
homes and even castles in France, Ireland and
is changing, step by step. Local travelers are
and exotic destinations, the Far East, South
Scotland where tourists can stay for more that
becoming less conservative and want to ex-
America, and the US.
“I have visited boutique hotels in Europe
tural tours in the Near East and North Africa
www.business-review.eu Business Review | June 2019
38 INTERVIEW
Laura Coroianu, Emagic: ‘Live music events are tourist gold for the local economy’ When you arrange an interview with Laura Coroianu, manager of Emagic and Awake Festival, you know to expect valuable insights into the Romanian music and entertainment business. For the past 14 years, Emagic has organized the first major international mainstream festival to take place in Romania, B’Estfest, alongside stadium concerts in Bucharest, Cluj and Timisoara (Depeche Mode, Red Hot Chilli Peppers, Madonna, Roger Waters / The Wall, Shakira etc.), bringing to Romania over 600 artists from all the continents. In 2017 Coroianu and Emagic started a new project, Awake Festival, aimed at all the creative communities in Romania, held at a beautiful baroque castle in Transylvania. By Oana Vasiliu Emagic started in 2006, since when you have brought to Romania some of the greatest artists of our time. What’s the biggest challenge in organizing a superstar’s concert? Organizing a big concert requires quite a lot of… organizing! Usually we make a deal with the artist around 12-18 months ahead of the concert date and then we start the pre-production process. In the 14 years that Emagic has pioneered and continued to innovate the live music industry, we have introduced international standards of production, schooled an entire generation of event producers with the help of specialists from Holland and the UK, implemented the token system for food & beverages (now known as RFID), and brought the first festival “activations”. Everything was a challenge for a while but at this point the main challenge our industry faces is the lack of proper venues of different capacities, from 1,000 to 20,000 – and not only in Bucharest but countrywide.
National statistics show that Romanians spend very little on culture. With so many festivals nationwide, are music lovers an exception? I don’t know which algorithm the national statistics use, but according to the main ticketing companies in Romania in the past 12 months alone a record 1.5 million tickets have been sold for live music events, from small clubs to stadiums and festivals. Speaking of festivals – this year alone over 70 music festivals have been announced in Romania. Overall ticket sales have increased by an average of almost
www.business-review.eu Business Review | June 2019
INTERVIEW 39
30 percent from the previous year. I think our
how much money will be brought to the local
industry is on the up at the moment.
economy. But it’s not only festivals that can be
Is there a recipe for success in the business of organizing music?
concerts, too – for Metallica this summer 48 percent of the audience will come from cities
vals and live concerts happening locally, is this type of entertainment affordable or is this the reason why you offer early bird tickets and announce events generally a year in advance?
Be professional and always respect your
other than Bucharest, with 15 percent coming
We offer early bird tickets only for festivals –
public; the ticket buyer is your customer, and
from abroad. That theoretically means up to
for the really big concerts this is just not done.
super beneficial for the local economy, but big
I really don’t understand organizers who offer discounts on tickets to the big shows – the artists never agree to this. As for early bird – this is a way of rewarding your most loyal fans, who will buy a ticket almost immediately after the previous festival has ended. Since most festival goers are very young you want to give them several options to afford a ticket to your festival.
Live music production is very expensive. For the events that Emagic organizes, what share is covered by sponsors and how much by ticket sales? It really depends from event to event – there are big concerts that we do with no sponsorship but where the tickets are quite pricey, like Metallica, or with some sponsorship worth 10-20 percent of the production budget. One thing we learned from our wonderful has to leave your event happy with how you
25,000 hotel rooms or other types of accom-
but eventually sad B’Estfest experience is
took care of them. It’s not only the artist who
modation plus what these tourists will spend
that when a festival has more than 50 percent
should have a happy and smooth experience –
on restaurants and shopping.
of its budget based on sponsorship you are on very shaky ground – a crisis like the one
always think about your public.
Has Romania become a point of interest for global music superstars?
in 2009-2012 can collapse all sponsorship
Ever since 2006 when we did the first
you cannot sustain at a certain level. That is
Depeche Mode concert at the old national
why we started this innovative new format –
stadium, international artists have discovered
Awake, a boutique festival of music, arts and
Festivals can become an important economic
and included Romania on their maps of world
ideas where the plan is that in the next three
force for the local economy and more and
tours. Madonna, Roger Waters/The Wall,
to five years sponsorship becomes a bonus
more cities now realize this and encour-
Sting, Red Hot Chilli Peppers, Lady Gaga, Sha-
and not a raison d’etre. Never again do we
age entrepreneurs to organize such events.
kira – none of these concerts would have hap-
want to go through what we went through
Awake Festival, which we organize outside
pened if we had not first broken the ice with
with B’Estfest when the last crisis hit.
Targu Mures on the grounds of the fabulous
that amazing sold-out Depeche Mode concert
Teleki Domain in the village of Gornesti, has
in 2006. Before that such artists considered
energized the local cultural scene and has
Romania part of a grey zone, the “wild wild
generated an impressive amount of cultural
east” as we used to call it. The “wild” element
You organize both festivals and live concert tours. Which do you prefer, as an organizer and as an attendee?
tourism. It was already shortlisted for “Best
still lingers in the fact that 30 years later we
I think organizing festivals is more creative,
European Medium Festival” at this year’s
still don’t have proper highways to smoothly
albeit a more arduous and long process, but I
prestigious European Festival awards in
bring the hundreds of trucks of equipment
do like the energy of a big stadium! I like them
Holland and only last week was selected by
necessary for a big concert or festival. But we
both, but I probably like being at Awake the
The Guardian as one of the 20 best boutique
remain hopeful.
most, because it is a “chill & thrill” type of
With a few exceptions, every major city in Romania has its own festival. Is organizing festivals the new entrepreneurship chapter locally?
festivals in Europe. You can imagine how many foreign tourists this type of recognition will add to the festival and Mures County and
budgets and then you end up with an event
event, where you both get the adrenaline rush
From your point of view and taking into consideration the amount of music festi-
and still find moments to enjoy, dream and relax – and even learn something!
40 EUROPEAN CAPITAL OF CULTURE
www.business-review.eu Business Review | June 2019
Timisoara waiting for its moment to shine In the official bid book for the title European Capital of Culture, Timisoara is described as “a place that shows courage when standing up for values. Mutual recognition and respect are the core of the city’s intercultural, multi-confessional and entrepreneurial community. Over 30 different cultures have lived here side by side for centuries (…). Here, ‘tolerance’ has come to mean community.” But is this community ready for such a challenge as being European Capital of Culture?
Photo: Bogdan Dinca / Documentaria.ro
By Oana Vasiliu
T
Unirii Square, one of the landmarks of Timisoara
he concept for Timisoara’s tenure
December, local businessman Horatiu Rada
thing, and probably the only news which
as cultural capital is inspired by the
has been president of the association, while
they’ve head from the national press will be
metaphor of light – Shine your light
in March, Simion Giurca, Romania’s former
about the lack of money or the huge reim-
- Light up your city! – which alludes to the
tourism chief officer in Vienna, was tasked
bursement delays the association has faced
fact that this was the first place in mainland
with drawing up the touristic strategy for
for the pre-2021 projects. In 2016, when the
Europe to have electric street lighting. This is
TM2021. New faces mean new approaches.
team was working on the candidature, the lo-
why the Timisoara 2021 European Capital of
“From 2016-2018 it was a startup period, as
cal authorities re-approved the city’s cultural
Culture Association (TM2021) is extending an
mentioned in the bid book, but now, in 2019,
strategy and final bid book, including the
invitation to join a journey through light and
TM2021 is starting its engines, funneling
financial commitment of EUR 20 million to
dark spaces, with three boundaries: people,
directions, and forming teams to develop
the operational budget. Some money should
places and connections.
cultural projects locally and internationally,
come from the Ministry of Culture, too, and,
cultural strategies and also touristic objec-
of course, EU and private sponsors. How
tives,” Rada told Business Review.
much has been implemented up until now
THE TEAM BEHIND THE PROJECT
and at what cost? In 2017, for example, in an
While the executive team of TM2021 retains Simona Neumann as executive director
MONEY, MONEY, MONEY
interview that Neumann gave to Adevarul
and Chris Torch as artistic consultant, new
Ask anyone outside Timisoara what’s the
newspaper, she mentioned that only 24
names have been brought on board. Since
deal with this European Capital of Culture
percent of the sum approved for TM2021 was
www.business-review.eu Business Review | June 2019
EUROPEAN CAPITAL OF CULTURE 41
THE ALTERNATIVES As noted in the bid book, Timisoara has 55 public cultural institutes which will support TM2021. But when it comes to spaces, the city suffers, although its poly-centered architecture can help the independent sector – and it’s Photo: Adrian Cartu / Documentaria.ro
already happening: some of the coolest and most interesting cultural spaces in Timisoara are in former industrial buildings. Two examples are Kunsthalle Bega and Ambasada. Worth mentioning are the cultural projects happening outside the hip places – Prin Banat Association offers a good example of understanding the recent history of Timis through One of the most see places in Timisoara: Scart Loc Lejer
Moving Fireplaces, while the Simultan Association has put the art of theater right in
being covered. And yet only recently, on May
in 2018, Timisoara had a capacity of 44 hotels
the middle of ten neighborhoods, bringing
24, the Government was due to pronounce
and 12 hostels, with the number of beds
new local audiences to the cultural scene.
the Timisoara 2021 European Capital of
reaching 5,354. The same statistics indicate
And maybe, just maybe, there is hope for the
Culture Association as being of official public
378,000 tourists came in 2018, of whom
cinema halls which recently returned to City
interest, Prime Minister Viorica Dancila an-
117,000 were foreigners. The numbers are
Hall management.
nounced.
encouraging, given that in 2015, only 279,300 tourists visited Timisoara.
COSTLY CENTERPIECE: MULTIPLEXITY
In 2018, the first five-star hotel opened up
CONCLUSIONS? Believe it or not, it’s on: Timisoara must be
Multiplexity, the city’s planned Art Technol-
in Timisoara. Tresor Le Palais was a private
presentable by 2021 to the locals, nationals
ogy Experiment Center, is due to cost about
Romanian investment by local businessman
and internationals. Good changes are happen-
EUR 12 million. According to the latest local
Liviu Peter, worth EUR 6 million. The other
ing – but too few and too slowly, say com-
news, the City Hall has decided to offer the
five-star resort is going to be part of the inter-
mentators. And 2021 is just around the corner.
space of the old public transportation center,
national chain the Rezidor Hotel Group, one
Maybe a good national communication
on Take Ionescu Blvd – the most important
of the fastest-growing hotel companies in the
campaign will help the local situation slightly
inheritance after the title European Capital of
world, which will open a new Radisson Blu in
and maybe outsiders should encourage the
Culture, as any cultural commentator will ar-
the city. The five-star property will be located
cultural Timisoara scene by attending some
gue. With this strong boost from the munici-
within the ISHO mixed real estate project
of the events – low-cost flights are available,
pality to build up the center, projects are now
developed by Romanian investor Ovidiu San-
half of the way there by car is on highway(s)
awaited. And, hopefully, a grand opening in
dor, through his company Mulberry Devel-
and modern trains connect the capital city
2021. Fingers crossed.
opment. And there are high hopes from the
and Timisoara. So from the actual capital, the
newly elected tourism strategist, Giurca.
cultural capital is within our reach. Photo: Adrian Cartu / Documentaria.ro
LONG PROMISED: MUSEUM OF THE ROMANIAN REVOLUTION Some 30 years since 1989 and after countless promises, the first state museum of the Romanian Revolution looks set to come into being. It will be hosted in the former military garrison in the city’s Liberty Square, which was transferred from the Defense Ministry to the Culture Ministry, News.ro reported. The museum will be established with financial support from the Council of Europe Development Bank. Currently, the project is in the feasibility stage.
BEDS AND HEADS According to the National Statistics Institute,
Kunsthalle Bega, a space where contemporary art can be seen in a very alternative and unusual old building
www.business-review.eu Business Review | June 2019
42 GOING OUT
Hot spots for cool drinks: Bucharest’s best gardens for the summer The long hot summer has already begun here in the capital, so let Business Review bring you the lowdown of the green oases in central Bucharest where you can escape the hot town and enjoy the shade, drinks, food and vibes. By Oana Vasiliu to… jazz. Some of the most highly acclaimed Romanian jazz musicians, like Harry Tavitian, A.G. Weinberger, Mircea Tiberian and Maria Raducanu, have put in an appearance.
ACUARELA 40 POLONA STREET One of the coziest places in Bucharest is Acuarela – where creativity is at its best. It offers a good selection of drinks and atmospheric interior design. The open terrace has umbrellas as its roof, and doors as its tables, everything nestling in a lovely leafy garden.
CAFE VERONA 13-15 ARTHUR VERONA STREET
find hammocks, wooden tables and chairs and beanbags to rest after a day’s work or
FABRICA 50 11 IUNIE STREET
An extension of the Carturesti bookstore,
sightseeing. Three bars serve the garden, with
Long story short: urban design pub, nightclub
Cafe Verona is a favorite spot for readers.
drinks ranging from fruit juices to cocktails
and music venue with a terrace, international
Serving a wide range of lemonades in oversize
and specialty beers. Plus good music.
menu and kids’ playground. Basically, an
glasses, it welcomes everyone for long and breezy evenings. The space occasionally hosts book launches, concerts and fairs.
entire eco-fun-system in one yard – and the
J’AI BISTROT 55 CALEA GRIVITEI
menu is tasty. Check out the interior design vintage store in the same yard.
One of Bucharest’s best known spots, J’Ai Bis-
CONTROL CLUB 4 CONSTANTIN MILLE STREET
trot’s courtyard is filled with wooden tables and chairs that enjoy plenty of shade. Serving
SIMBIO 26 NEGUSTORI STREET
Definitely the place to be. There is always
a wide range of dishes, it also boasts a great
Great food, great drinks and a casual, relaxed
something going on, be it a DJ set, live music
playlist.
atmosphere are the ingredients here. The
from one of Bucharest’s better acts or a quirky international band you actually want
kind-of hidden garden is perfect for the long summer evenings we all deserve. Well-curat-
to go and see. The crowd is equally eclectic,
SHIFT PUB 17 GENERAL EREMIA GRIGORESCU STREET
refreshingly free of the airs and graces you
It’s the food, it’s the drinks, it’s the mood. Or
find in so many other Bucharest clubs. It’s not
all of them. There’s a lively atmosphere on the
only a club, but also a brasserie during the
green terrace during hot summer days when
MONTEORU TERRACE 115 CALEA VICTORIEI
daytime, terrace and restaurant, everything
everyone wants a spot. Sit back and enjoy the
Hipster hangout in a former Writers’ Union,
shaded by a huge creeper.
select music from dream pop and post-rock to
which seems to have been forgotten by the
jazz and electronica.
world. Many tables, shaded by greenery,
GRADINA EDEN 107 CALEA VICTORIEI
ed menu, too.
await you with a good selection of drinks and
GREEN HOURS JAZZ CLUB 120 CALEA VICTORIEI
stories. One of Bucharest’s most bohemian
Located behind the imposing Stirbey Palace, Eden is said to be one of the biggest gardens
This Bucharest institution is all about a
a less conventional space. A big plus is the
in the city. Scattered between the trees, which
relaxed and laid-back atmosphere on summer
music; after sundown a local DJ may surprise
have been growing wildly for years, you’ll
evenings, drinking cocktails and listening
you with a set.
city terraces, this will suit those looking for
www.business-review.eu Business Review | June 2019
44 EXPAT EYE
A tale of two countries: is the UK turning into Romania? In BR’s monthly column looking at life in Bucharest from an outsider’s view, BR’s British writer notices increasing similarities between her two countries. By Debbie Stowe ain for being too unstable! A few years ago, when Klaus Iohannis was about to be elected president, I marched through Bucharest with thousands of others to demand the right to vote for members of the Romanian diaspora, who’d been forced to wait hours outside foreign embassies in an (alleged) bid to reduce the effect of the largely anti-PSD vote abroad. In the recent EU Parliamentary elections, it was Brits overseas and EU citizens in the UK prevented in large numbers from casting their ballots. Where million-strong marches were
A
unheard of in the UK since the Iraq War, now we Remainers take to the streets regularly as
s a Brit who has made her home in
port? Fifteen years and two children later, my
we try to stop our country being dragged back
Romania for more than 15 years now,
doubts are allayed. But now the shoe is on the
to the dark ages with Brexit.
I have two countries. One is on the
other foot. Back then we Brits were desirable
margins of Europe, ruled by a corrupt and in-
for our passports; now, if Brexit goes ahead,
TRENDS AND BRANDS
ept government whose terrible policies regu-
we’ll need our Romanian partners for theirs.
When I first moved here, things like Starbucks
larly bring millions of demonstrators out onto
and sushi were a distant dream. There were
the streets, a largely irrelevant land mocked
PRICES
a few restaurants of exotic “specific”, mostly
and belittled by fellow Europeans. The other
With a Western salary, even one from a
ropey, and the odd swanky café, but general-
is Romania. (See what I did there?)
traditionally poorly paid profession like
ly, coffee was dark, cloyingly sweet and with
journalism, an expat in Romania was on easy
bits floating in it, while foreign restaurants
pat? When I’m in Bucharest, I talk about our
street. Posh restaurants, nights out, taxis
meant pizza. Fast forward to today, and Bu-
next trip “home”. But when we’re back in the
around town, a city center apartment – it
charest boasts every food and fashion trend.
UK, I consider our journey to Romania going
was all within reach and you didn’t have to
You can feast on pulled pork, conveyer-belt
back “home”.
worry too much about the cost. This month I
sushi, and ramen. You can don skinny jeans
drank a lemonade in one of the loveliest cafes
with your curated facial hair and man bun.
why (a question I doubt is asked of Roma-
in my ‘hood, near Cismigiu. RON 15, RON
Sometimes it feels like there are more hipsters
nians in the UK, as the reasons are probably
20 with tip! Nearly GBP 4! It’s lemons and
in downtown Bucharest than in Hackney.
considered self-evident). But I get asked it
water! Bucharest’s trendiest venues are now
less often these days, which made me realize
dangerously close to charging London prices.
a trendy café that didn’t even have Roma-
that my two countries are getting more alike –
Thanks, hipsters.
nian-language menus, because “all of the
But where is home, for the long-term ex-
Ever since I moved here, I’ve been asked
indeed, in some ways turning into each other. Here’s how!
And when I ate lunch a few months back in
customers know English”, the transformation
POLITICS
was complete.
A Romanian mum who attends my baby sing-
PASSPORT POWER
ing group (Baby Bounce Bucharest if you’re
BUT…
The first time I took my Romanian partner
asking!) had been thinking about moving to
Had I been writing this amid the rains of last
back to the UK to meet family and friends,
the UK. She recently told me the move was off
week, it would have also felt as if Bucharest
I confess I was a little nervous. It was 2004,
– the UK was now too unstable. Think about
had adopted London’s weather. However,
the visa era, and we hadn’t known each other
that: someone from the Balkans (okay, I know
today’s balmy high twenties temperature
long. Was he just using me to get into the UK?
Romania is not quite Balkan, but go with me
reassures me that this is not the case. Enjoy
Was he planning to do a bunk at Heathrow air-
for the sake of the analogy) rejecting Brit-
the continental sunshine!
www.business-review.eu Business Review | June 2019
RESTAURANT REVIEW 45
THE COOL PLACE TO BE SEEN IN
I
>>> Raionul de Peste, 111 Calea Floreasca <<<
t’s fresh, cool and sexy. And so are the
19. I was still hungry and enquired about the
were unable to identify and name the fish
patrons, for I was surrounded by tables
Thai seafood soup at RON 47. It was ludi-
on ice.
of gorgeous girls who had clearly fled
crously priced for 350 g. Picture in your mind
So for familiarity I ordered one of four
the boredom of Radu Beller’s beautiful mile
how much water is in soup, so why did they
options of cooked oysters, namely with
and the vulgarity of Herastrau’s lakeside.
print the weight of the soup? I asked about
truffles. I knew this would not work as the
Yes, this place is a poseur’s paradise. It is
the Thailand connection but declined the
truffle would dominate the oyster, but I
expensive, so I couldn’t understand how so
soup after my waiter told me it was a mild,
adore that duo – separately. I need not have
many ‘beautiful things’ could afford to eat
gentle spice, “as people don’t like it spicy
worried, as not only did they not name the
here mid afternoon during office hours, as
and strong”. No, Mr. Waiter, customers have
breed of oyster on the menu (a mistake,
clearly they were unemployed. But on close
travelled and aficionados of Thai cuisine ap-
House) but they had no oysters!
inspection they were languishing over a wa-
preciate authentic, and blistering hot spiced
ter and starter, so the mystery was resolved.
up dishes.
It is a fish restaurant, and I was delighted to see they offered a departure from the normal, monotonous Romanian chophouse
I waited for the predictable basket of bread for my table, but it did not happen.
So Blondie chose two starters: a salmon sashimi marinated in passion fruit juice at RON 39 and another salmon
Nothing. I wanted some Tabasco and olive oil to sex up my fish, and although I could see it on a staff table, nobody brought it to me, so I had to walk the length
marinated in
deal of freshwater local fish and
of the terrace and take it for
whis-
bottom feeders from dodgy
myself.
slimy still-water lakes.
I passed on a selec-
They had John
tion of nine Sushi
Dory, a thin delicate fish thriving in the
dishes, all priced by
Mediterranean and
weight from RON
the North Atlantic;
33-44. Again the
Lithrini (Pandora),
weight trap raises its head as rice is
another Atlantic
as heavy as hell, but
favorite with a delicate flavor; Grou-
you will pay for that
per, a huge fat beauty
weight. I was tempted by the seafood risotto at
popular in Australia where it feeds off the reef; Sea Bass;
RON 68. But my temper was
key and
and Scorfano (redfish), a red meaty
served with dribs of
frayed when the menu told me it was
horseradish and cream at RON 48. They were
priced at 300g. Again, rice and water being
the same raw sliced salmon with different
meticulously weighed and priced accord-
But you have to buy the whole fish, includ-
marinades, but she loved them both. There
ingly. Blondie wanted a dessert of crème
ing its head and guts, when they weigh it.
is an open kitchen, and a wonderful display
brulee, but she wisely declined when she
I picked out the smallest John Dory I could
of fresh fish on ice ready for your inspection.
saw it was priced at RON 25/150 g. The
see, which when they had cut off two fillets
But it is a telling indictment on this town that
House should have put it on display at a
left me with a tiny amount looking lonely
none of the diners bothered to inspect their
fixed price, so dessert lovers could see what
on a plate accompanied by a bare lettuce
dinner before it was brought to them. They
they were about to receive.
and a wedge of lemon. There was no sauce
were either ignorant of the product, or afraid
or dressing, and yet my tiny fish cost RON
to expose their ignorance. But they paid top
the food really is good and the menu is
150. It was delicious, but beware the price
dollar for it!
exciting, albeit absurdly priced by weight.
Mediterranean fish. These were all priced at RON 25/100 g.
trap when you order by weight.
The House is new, so making mistake after
But I cannot write this place off, because
It has only been open for a few weeks, but
mistake, but that is natural and forgivable.
I will go back when it has settled down. I
broccoli, which was one of eight selections,
The waiters needed a training course, as they
liked it.
each weighing 150 g. It came in a tiny, mean
could not answer any searching gastronomic
paper box and relieved my wallet of RON
questions about the menu. I suspect they
I had to bulk up my plate with a side of
Michael Barclay Mab.media@dnt.r
www.business-review.eu Business Review | June 2019
46 CITY
Cultural calendar
By Oana Vasiliu
promote and protect the environment.
Bucharest International Film Festival June 24-30, several locations culture and lifestyle: exhibitions, theater and dance performances, movie screenings, parties, concerts, forums, debates, conferences, and open-air events. The parade happens on June 22 at 17.00, leaving from Piata
More movies, this time in Bucha-
Victoriei.
rest, at the Bucharest International Film Festival. Another
Transylvania International Film Festival (TIFF) May 31-June 9, Cluj Napoca â&#x20AC;&#x201C; several locations
Pelicam Film Festival June 20-23, Tulcea
iconic date in the Romanian
of the capital city and the stories
For debates and movies about
included in the La Roumanie en
behind it. Free entry.
the environment, try Pelicam
France / La France en Roumanie
Film Festival. Held in Tulcea, on
program, so a special section will
the shores of the Danube, the
be dedicated to a major French
event channels good vibes and
filmmaker who will be present in
a good mood in an attempt to
Bucharest.
Sibiu International Theater Festival (FITS) June 14-23, Sibiu - several locations
As is now traditional, TIFF kicks off the summer festival agenda, and this year it turns 18. Expect new box office records, sold-out
The place where performing arts
opening and closing screenings
are brought together, with an
that are the talk of the town, and
impressive agenda for theater
eclectic hot-ticket film-based
lovers and contemporary dance
events. Plus the parties. Bonus:
connoisseurs, including industry
Nicholas Cage is coming to Cluj-
debates, street art and music,
Napoca.
plus much more.
Street Delivery Bucharest June 14-16, Arthur Verona Street
Bucharest Pride Festival June 15 - 23, several locations
Once a year, one of the most
The annual festivities dedicated
beautiful city center streets is
to LGBTQI+ rights, Pride caters
given over to pedestrians. Street
both to the Romanian LGBTQI+
Delivery Bucharest will this year
community, as well as to those
showcase poetry, with the theme
keen to find out more about its
cinema calendar is this year