INTERVIEW: Javier Garcia del Valle, executive VP and CEO of Happy Tour, tells BR about the development of the local tourism industry and how Romania is faring as a travel destination »page 5
ROMANIA’S PREMIER BUSINESS WEEKLY
APRIL 15 - 21, 2013 / VOLUME 17, NUMBER 12
WALKING THE CSR TALK Long-term programs with a lasting impact are starting to replace shorter ones on firms’ CSR agendas »page 8
NEWS
NEWS
CITY
Scandi cash
Urban outfitter
Spanish guitar
The funds allotted to Romania in the second phase of the Norway grants program triple to EUR 306 million, the second biggest allocation after Poland
Real estate developer Tagor is planning to start works at three new ‘urban village’ residential projects in Bucharest, Arad and Timisoara
After his Atheneum show, Juan Miguel Canizares told BR about the art of flamenco and his latest release, the album Cuerdas del alma
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www.business-review.ro Business Review | April 15 - 21, 2013
NEWS 3
NEWS in brief
BUSINESS AGENDA April 16
BANKING BCR Banca pentru Locuinte assets surge 58 percent on higher deposits The assets of BCR Banca pentru Locuinte (BpL), a bauspar provider, rose by 58 percent to RON 1.5 billion in 2012, helped by a 63 percent increase in deposits to RON 1.4 billion, said officials. The lender’s savings-loan portfolio grew by 20 percent to 304,000 contracts last year, with an average value of RON 41,000. The total loan book reached 49 million, expanding 11 fold in 2012. BpL grants financing for real-estate investments such as the purchase of a house or land, re-mortgaging and for the modernization or extension of houses. Local consumers saved on average EUR 116 in 2012, an increase of 30 percent on 2011, according to BpL statistics. A study commissioned by the company revealed that 68 percent of Romanians aim to improve their housing conditions in the next five years.
CONSULTANCY EU affairs consultancy Orban Biris European Consultants launches Former EU commissioner Leonard Orban and lawyer Gabriel Biris, through SCPA Biris Goran, have launched the EU affairs consultancy firm Orban Biris European Consultants. The firm will provide consultancy services on EU and EU fund-related matters. According to representatives of the firm, it aims to support market players in promoting their interest as regards legislative projects under debate in Brussels or at a national level. At the same time, the firm will provide assistance to national authorities looking to identify public policies supporting specific economic needs. The firm will also target companies in need of assistance to overcome various issues related to ongoing EU-financed projects while focusing on identifying the elements that can support the country’s access to its forthcoming allotted EU funds.
ENERGY Energreen Investment Europe acquires 17MW of solar power in Romania Luxembourg-based investment fund Energreen Investment has acquired a 17MW photovoltaic park in central Romania, Brasov County, amid the
government’s moves to slash incentives for renewable energy production. Energreen has projects in Italy and Romania, but also targets the US, South America and Asia. The company operates some 20MW of photovoltaic parks in Italy. The fund is looking for countries that grant incentives for renewable energy producers. Law firm Schoenherr advised Energreen during the due diligence process and the transaction closing. Romania reached 92MW of incentivized solar capacities in February, according to grid operator Transelectrica.
IT RCS&RDS seeks EUR 800 mln of financing RCS&RDS intends to obtain financing of up to EUR 800 million over a maximum of ten years and does not rule out the possibility of attracting new shareholders, according to Mediafax newswire. The funds will be used to restructure, totally or partially, the company’s current financial commitments. At the beginning of 2011, RCS&RDS took out a syndicated loan of USD 206 million to pay off some loan repayments that were due, and an additional syndicated loan of EUR 125 million. In the first half of May, RCS&RDS shareholders will hold two meetings to discuss the possibility of attracting financing of up to a total of EUR 800 million for a period of no longer than 10 years. Cable Communications Systems Netherlands is the main shareholder in RCS&RDS, with an 88.54 percent stake in the firm, while RCS&RDS controls a 7.83 percent share package. Businessman Zoltan Teszari indirectly controls RCS&RDS, giving him a 60 percent stake in RCS Management, which runs Cable Communications Systems.
cluding investments and financing sources. Bidders are required to provide a letter of comfort that covers the starting price of the tender and the planned investments. The shortlisted investors will be announced on April 23 and individual negotiations with the potential buyers will start on May 9. Would-be investors can pay EUR 10,000 for a presentation document on the firm, which is available from Tuesday. CFR Marfa, which is fully state-owned, has a share capital of RON 312 million (EUR 70.2 million). The privatization is part of a EUR 5 billion stand-by agreement with the IMF, European Commission and World Bank.
RETAIL Mega Image opens first Shop & Go stores outside Bucharest Grocery retailer Mega Image has opened its first Shop & Go store outside the capital in Brasov, the company has announced. This will be the first of a total of seven Shop & Go outlets that will be inaugurated this April in the Transylvanian city. Shop & Go units have smaller surfaces than regular Mega Image supermarkets. The company plans to open a total of 10 stores this month, including two Mega Image supermarkets which began trading in Bucharest last week. Part of Belgian firm Delhaize, Mega Image has been present in Romania since 1995. The retailer now runs a national network of 209 supermarkets – 139 Mega Image stores and 70 Shop & Go units – the largest in Romania. The outlets are mainly located in Bucharest but are also found in Constanta, Ploiesti, Pitesti, Brasov, Targoviste and other cities.
Meli Melo Paris sells EUR 8.25 mln of accessories in 2012
PRIVATIZATION CFR Marfa privatization to start at EUR 181 mln Romania will put a 51 percent stake in railway freight operator CFR Marfa up for tender with a starting price of RON 797 million (EUR 181 million) in an offer that runs for three months with an extension option, according to the Ministry of Transport. Potential bidders need to have experience in the freight transport business and an annual turnover of at least EUR 100 million in the last three fiscal years. Interested companies also need to present a development strategy for CFR Marfa in the next five years, in-
Romanian jewelry and accessories retailer Meli Melo Paris increased its sales by 10 percent in 2012 y-o-y, to a total of EUR 8.25 million, the company has announced. The growth was mainly generated by the opening of new stores. The company runs a network of 41 outlets countrywide which see some 3,500-4,000 visitors each month on average. Romanians typically go shopping for jewelry and accessories weekly and spend RON 55 (approximately EUR 12.5) on jewelry and accessories in an average purchase, the company says. The most popular sold items are bags, fantasy jewelry, hair accessories and other items on sale. The firm was set up in 1998 and has French owners.
10:30 ZebraPay organizes a press conference to mark the completion of an EU-funded project on epayments at Howard Johnson Hotel. By invitation only. 19:00 The Meet the Woman conference series hosts an event on the topic Image as a First Tool of Business Promotion, at the Capital Plaza Hotel. Dr. Mihaela Leventer, founder of Dermastyle, will be guest speaker. By invitation only.
April 18-21 Expo Flowers, the international exhibition for the flower business, landscape design and gardening, is organized at the Romexpo Exhibitions Center. Ambient Expo, the International fair for products and systems for interior and outdoor decoration, furniture and swimming pools, takes place at Romexpo Exhibitions Center. By invitation only.
April 20-21 The Maastricht School of Management Romania organizes a sales course as part of a new executive training program. Participation is fee-based. Find out more at www.msmromania.org/content/op en-enrollment-courses
April 23 09:00 ∫EVENT Business Review organizes the fourth edition of Focus on Employment &HR, an event that covers various aspects of the labor market, ranging from legislative challenges to the use of innovative recruitment tools, at Ramada Plaza Bucharest. By invitation only. Find out more at www.business-review.ro/br-events
May 13 09:00 ∫EVENT Business Review organizes Focus on Energy, an event that gauges trends in the domestic energy market. Find out more at www.business-review.ro/brevents
May 22 09:00 HART Consulting organizes the sixth edition of the HART HR Strategic Conference, entitled CEOs and Organizational Culture: What Makes it or breaks it? Participation is fee based. For registration, e-mail consulting@hart.ro
www.business-review.ro Business Review | April 15 - 21, 2013
4 NEWS FUNDING
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Kostas Loukas is the new general manager of Microsoft Romania, joining the local branch after running the Cyprus and Malta offices. He has eight years of experience at Microsoft, where he has developed his skills in general management, marketing, operations and finance. After starting his career in 2005 as a financial auditor at Microsoft Greece, Loukas served as financial and administrative director for the next three years. In 2009, he acted as interim GM of Microsoft Greece for a year while in 2010 he was appointed marketing and operations director at the same company. Since January 2012, he had managed the Microsoft business for Cyprus and Malta.
Grigorios Vassiloconstandakis is the new Greek ambassador to Bucharest. He previously served as Consul General in Cairo and Minister Plenipotentiary in 2012. Vassiloconstandakis was also head of the MFA Directorate for bilateral relations with the US and Canada. Previously, he served as consul at the General Consulate of Greece in Istanbul and as political counselor at the Embassy of Greece in Paris. Other positions he has held include head of the First Greek Monitoring Mission of the Peace Process in Kosovo, facilitator of the Southeastern Europe Security Steering Group (SEEGROUP) and director of Chairman’s Office for Democratization and Human Rights of the Stability Pact for Southeastern Europe. He holds a law degree from the University of Athens and is fluent in English, French and Italian.
Petru Vaduva has been appointed member of the administration board of gas transport company Transgaz by the Romanian Office of State Ownership and Privatization in Industry (OPSPI). He is the CEO of Tiriac Holdings and board member at UniCredit Tiriac Bank and Allianz Tiriac. He has a background in banking and investment, having spent more than 20 years in management positions at local and international firms including Russia’s Renaissance Capital and British Seb Investment Management.He
obtained a bachelor’s and master’s degree at the Biochemistry Faculty of Columbia University and holds an MBA from Yale University.
Radu Cernov has been appointed member of the Transgaz administration board by OPSPI. He is a partner at the law firm Enescu Panait Pop & Asociatii. Cernov has worked in the field of regulated industries and government relations for more than 12 years. He graduated from the Law Faculty at the Bucharest University.
Mihaela Preda has been appointed member of the Transgaz administration board by OPSPI. She is director of the OPSPI Institutional Relations and EU Policy department. Preda has over 30 years of experience in public administration and in the oil and gas sector. She graduated from the Energy Faculty at the Polytechnics Institute and holds a master’s and PhD from the Faculty of International Economic Relations.
Mihai Zoescu has been appointed director, transaction services, by KPMG in Romania, effective from 1 April. Zoescu joined KPMG in 2003. He graduated from the Academy of Economic Studies in Bucharest, Faculty of Finance, Insurance, Banks and Stock Exchanges. He has a master’s degree in the same field and is a member of several national and international professional organizations (ACCA, CAFR, CECCAR). He has extensive experience in M&A projects.
Ion Sterian has been appointed member of the Transgaz administration board by OPSPI. He has been a member of the company’s shareholder board for six years and has played an important role in the restructuring and modernization of the company. He has worked in the oil and gas sector for more than 20 years. Sterian is a graduate of the Oil and Gas University in Ploiesti and has taken two courses in International Relations and Financial Management at the Romanian Institute of Diplomacy and the Open Business School Codecs Romania.
Romania to receive EUR 306 mln in EEA and Norway grants by 2014
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he funding allotted to Romania in the second phase of the EEA and Norway grants program, which aims to bring the domestic economy in line with the standards of more mature EU members, has tripled to EUR 305.6 million. Romania received the second biggest allocation after Poland out of the 15 states that qualify for the grants system supported by Iceland and Liechtenstein, along with Norway, which provides 97 percent of the financing. Public authorities, private companies and NGOs are eligible for grants. In the first phase, Romania was allotted EUR 98.5 million and achieved an absorption rate of 85 percent, which was used to finance 65 individual projects. The developed projects addressed a wide array of matters, from the restoration of landmark buildings to the extensions of the sewerage network and the setting up of prevention programs in the healthcare field. For instance, the ASTRA museum in Sibiu used a EUR 2.4 million grant to build a new conservation and storage centre for cultural heritage objects. Øystein Hovdkinn, the Norwegian ambassador to Romania, said, “We want Romania, the largest country in South Eastern Europe, to become as wealthy, prosperous and developed as (countries) in Western Europe.” He added that the grants aim to enhance the country’s social and economic development and
strengthen bilateral ties between Norway and Romania. The ambassador stated that a fund worth EUR 30 million will be launched this week for NGOs seeking to develop projects, as part of the fresh allocation program. The donors have decided to expand the allocations for Romanian projects to EUR 305.6 million and have set up 23 programs to help the absorption. The Romanian authorities will mainly act as program operators and the Ministry of European Funds will play a central role in managing the granting system, along with the public bodies from donor states. The focus of the Norway grants will be on improving the situation of the Roma, supporting judicial reform and combating organized crime. Protecting biodiversity and cutting greenhouse gas emissions in the maritime sector are other priorities in the new program. “So far, two projects have been launched and we hope that most of the 23 will be launched this year,” said Hilde Berit Eide, counselor for EEA & Norway Grants at the Royal Norwegian Embassy. She expects more projects to be implemented under the new program, hoping the absorption rate will ultimately increase. The open call for projects and the selection will take place this year. The projects are expected to be completed by 2016, but the deadline could be extended by one year. ∫ Ovidiu Posirca
PROPERTY
Tagor to start work on three new residential projects over next month
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eal estate developer Tagor will open this May the first two apartment blocks in the Adora Urban Village residential project near Bucharest and plans to start works at three new such projects – a second one in Bucharest in the Pipera neighborhood, one in Arad and one in Timisoara. The projects will contain between 600 and 1,200 apartments each and are all based on the concept of an “urban village”, featuring lowrise apartment blocks, parks, plus commercial and entertainment facilities. Some EUR 6.1 million has been invested in the two blocks so far, and 75 apartments will be completed this May. The total investment will rise to EUR 34 million for 12 buildings with 500 apartments. Ofer Lieberson, the owner of Tagor, hopes to sell most of the 75 apartments this year and says the second phase of construction will start after 40-50 percent of the properties are sold. The developer is mainly targeting buyers interested in acquiring an apartment through the Prima Casa government loan scheme, but says that even if the program is dropped, the homes will re-
main competitive in the present market conditions. Half of the investment in the Adora Urban Village came from businessman Lieberson and his partner, real estate fund Patron Capital. The rest took the form of a loan from Carpatica Bank. Lieberson says he also secured financing for the Arad project from Volksbank. All the residential projects are built on plots of land that Tagor purchased before the beginning of the economic crisis, along with Patron Capital. “We bought various plots of land for development throughout Romania. Then the crisis came so what we have done since 2007 is modify our development plans for each plot of land we bought and adjust in order to suit the new environment in Romania. This means smaller and more affordable apartments,” said the Tagor owner. Adora Urban Village is located in Bragadiru near Bucharest. Apartments cost between EUR 40,000 for a studio and EUR 75,000 for a two-bedroom flat. Surfaces range between 40 and 75 sqm. ∫ Simona Bazavan
www.business-review.ro Business Review | April 15 - 21, 2013
INTERVIEW 5
Local holidaymakers carry on abroad The tourism industry has got off to a more promising start this year as currency stability has reignited Romanians’ appetite for travelling abroad, with vacations at home accounting for just a fraction of local tour operators’ offers. Javier Garcia del Valle, executive vice-president and CEO of Happy Tour Group, talks to BR about the group’s strategy to consolidate its local leadership position while also expanding regionally. ∫ SIMONA BAZAVAN
CV Javier Garcia del Valle
What are the most popular travel destinations for this year’s Easter holiday? What we have seen is that there are two key trends. The first is to stay at home, in Romania, as I have seen that for Romanians, Easter is a very traditional family holiday. Some people prefer to go to the mountains or the seaside here in Romania, but others are choosing our charters for destinations such as Antalya, Greece, Crete and Cyprus, usually southern destinations where the weather is warmer than in Bucharest. There is demand for the usual European city destinations and during this period it is also a good time to go to Dubai. Over the past few years have you seen people plump for local destinations rather than going abroad? Romania is a fantastic country and a marvelous travel destination but it is not held in as high regard as it should be. The crisis has definitely pushed Romania more as a destination and by this I don't refer only to the economic crisis. Don't forget that between June 2011 and June 2012 there was a devaluation of almost ten percent of the Romanian currency, leading to many people deciding to spend their holiday in the country last year. So in 2012 we saw a very strong trend towards local holidays and we believe that this was mainly because of the currency effect. Even so, the share of package holidays in Romania in our total turnover is still very small. What about demand for foreign destinations? This year the number of bookings we have taken for abroad is far higher than last year. The number of reservations we had on April 1 is three or four times what we had at the same time last year. It is encouraging but we will have to see what happens next. The fact that we have a stable government and therefore stable currency helps very much. How could Romania attract more visitors on the long run? I am not saying that this year we will not see people staying in Romania. There are clients for all destinations but the
March 2009 to date – executive vicepresident/CEO Happy Tour Group January 2004 to March 2009 – coowner Raytur Group (Malaga, Spain) July 2003 to April 2008 – owner Reservas Costa del Sol (Malaga, Spain) April 2001 to May 2003 – director of operations at Grand Circle Corporation (Boston, USA) for the Iberia region upward trend and 2012 was better in terms of sales than 2008. In 2009, for example, we had a turnover of EUR 2829 million. Since then we have made new acquisitions for the group but this was done through our own money and not funds coming from GED (e.n. Happy Tour was taken over by private equity fund GED in 2007) which is very important. As for 2013, we want to offset the fact that one of our major corporate clients, Petrom, has chosen a global provider instead of us, and even grow. Judging from the results from the first two months of 2013, we are on the right track. more the infrastructure improves, the more Romanians will spend their holidays here and the more foreigners will come. Romania has all the ingredients to be a top destination. I would recommend a stronger focus on infrastructure and better promotion. Since I came here four years ago, there has definitely been an improvement. Look at Bucharest’s Old Center alone or what an event such as the Europa League final last year has meant for promotion. We need more of this. Judging from the way things are progressing right now, it will be even better in five years’ time. But is it enough? My answer is no. It is never enough. By how much has the average value of a package holiday decreased over the past year? Over the last three years I would say by
roughly 15 percent on average. But this drop was not all because we have all decreased our margins, which we have, but also because lower demand has brought down prices. However, what we’ve seen starting this year is that little by little prices have begun to rise again. There has been a slight increase. I am not saying we will recover this 15 percent fall. This will take a few years, perhaps even five or six years for a travel agency. What turnover did you report last year and what is the target for 2013? I cannot provide the exact figure because the audit results are not available yet, but we had a consolidated turnover of around EUR 65-67 million in 2012. Although our best year on the local market was before the crisis, since 2009 we have maintained an
What is your market share in Romania? This is a tricky question as there are no official, accurate data based on which to calculate this. The authorities say that the travel industry in Romania is worth about EUR 500 million, so for us this meant a market share of 13-16 percent last year, depending on the month. But this is not accurate data. We don't know how this EUR 500 million figure was calculated. We don’t even know how many tourists came to Romania last year or how many room nights were reported. I don’t know how they came up with this figure. But, anyway, we are the market leader. A longer version of this interview is available at www.business-review.ro simona.bazavan@business-review.ro
www.business-review.ro Business Review | April 15 - 21, 2013
6
Let’s get digital: new generation challenges bosses’ methods Large investors in Romania can quench their financing thirst by applying for state aid until the end of this year, while SMEs are waiting for a pending tailored scheme from the Ministry of Finance. Pundits from Daedalus, Boyden Global Executive Search, IBM, Microsoft and Google debated this, as well as the challenges posed by the upcoming digital generation on the labor market, at the IT&C Roundtable organized by Business Review. ∫ OTILIA HARAGA
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All photos: Silviu Pal
“Companies must be aware that within 10 years, the digital generation will represent more than half of the employees on the market,” said Daniel Enescu, CEO of Daedalus, who urged companies to maximize the strengths of these employees. According to the Digital Generation Survey carried out by Daedalus at European and local level, the digital generation, defined as people born between the late 80s and early 90s, has a different thought paradigm, due to the availability of the internet while they were growing up. These young workers have a different relationship with the management from previous generations. While generation X or Y viewed the boss as a content expert, this generation challenges this status. Managers need to position themselves as trainers or mentors instead, Enescu urged. Furthermore, the digital generation has a short-term focus and wants instant gratification. “Companies must rethink their entire reward system and provide constant ‘liketype’ feedback. Incentive systems based on performances that are evaluated once a year are insufficient,” said Enescu. This generation not only requires more flexibility but also tends to do more things at a time. Their attention spans are lateral rather than in-depth, they get bored easily and learn through gamification. But for a number of reasons, these young workers are unprepared for the market demands. Valeriu Nistor, country sales director at IBM Romania, argued that school does not provide them with proper guidance. Moreover, they are raised in a different environment and have a short-term focus. “We all need to adapt to the world, a world in which new technologies are used to search for a new business model,” he said. Dan Bulucea, country manager at Google Romania, agreed. “Is a fashion company that sells online an IT company?” he wondered. Quoting a McKinsey survey, Bulucea said that 75 percent of companies that are most productive on the web are not IT
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1. Daniel Enescu, CEO of Daedalus 2. Anca Podoleanu, HR expert 3. Valeriu Nistor, country sales director at IBM Romania 4. Dan Bulucea, country manager of Google Romania 5. Sorin Eftene, interim general manager at Microsoft Romania (left), and Livia Stan, general division of state aid, anti-trust practices and regulated prices, Ministry of Public Finance (right) 6. Andreas Landgrebe, managing director Austria & CEE Boyden Global Executive Search companies, and nowadays businesses cannot afford not to keep up with technology. He also enumerated several Romanian companies that have become global businesses with the use of technology, such as dreamstime.com, becomegorgeous.com, oxigenxml.com, keepcalling.com, and soft32.com. A good chief digital officer thinks ROI, understands the sector and the business inside out and is able to pull the real levers for change, including how and where to invest available funds. He or she is also able to plan and execute long-term strategy around driving customer awareness, engagement, experience and monetization, said Andreas Landgrebe, managing director for Austria & CEE
at Boyden Global Executive Search. Companies in Romania that want to make long-term investments can apply for state aid, heard participants at the BR event. The state aid scheme is not just for IT&C businesses, but for projects that comprise an IT&C component of 20 percent of the value of the investment plan. The total financing fund amounts to EUR 100 million. Firms can submit applications and obtain approval only until the end of 2013. The period estimated for making payments is between 2013 and 2018. “No financing agreement has been released yet but we have five applications for now and we hope that by the end of the year we will have ten,” said Livia Stan of the general division of state aid, anti-trust practices and reg-
ulated prices in the Ministry of Public Finance. On this issue, Microsoft and IBM bosses said their companies are interested in applying for state aid in Romania. “We are evaluating internally at Microsoft Romania the eligibility of our company for the state aid scheme H.G. 797/2012. Together with an external consultant we are about to identify if our growth plans in Romania can be accelerated by this scheme. However, we have not made any formal proposal to the decision-makers,” said Sorin Eftene, interim GM of Microsoft Romania. Similarly, Nistor said the state aid scheme was one of the reasons why IBM had considered opening service centers in Romania. Currently, the Ministry of Public
www.business-review.ro Business Review | April 15 - 21, 2013
Business Review will host the Focus on Employment & HR event on April 23, at the Ramada Plaza Bucharest. For more in-depth information, go to the events section of the www.business-review.ro website. otilia.haraga@business-review.ro
Still enough time for state aid submissions Companies that commit to make an investment that creates at least 200 new jobs for five years after completion can still apply for and obtain state aid until the end of this year. Manuela Furdui, managing partner at FinExpert, sheds some light on what type of businesses are eligible for state aid and why most firms with local capital stand little chance of success. state aid schemes are oriented towards the development of the region and the business environment, and the creation of new jobs, irrespective of the nature of the capital.
∫ OTILIA HARAGA How can a company obtain state aid? The first step for a company that intends to apply for state aid is to establish whether its project is eligible, verifying whether conditions set by government decision HD 797/2012 are met. The main conditions for obtaining state aid are that investments have an innovative character or include an IT&C component representing at least 20 percent of the value of the investment plan, and at the same time create 200 new jobs that the company can maintain for five years after completing the investment. Not eligible are call-center activities (under NACE [the activity domain list, a classification of activities in the national economy] Code 7022, consultancy for business and management; NACE Code 7320, market and public opinion research; and NACE code 8211, combined secretarial activities). After a company obtains financing, what other steps are necessary? After the financing agreement is obtained, there follows the most important phase of the process – the implementation of the project and the reimbursement of the eligible expenses (the cost of the newly hired personnel for a two year period). The period allocated for reimbursements runs until 2018, which allows ample time for the implementation of all approved projects and for the reimbursement of the entire approved sum. The next phase after completing the implementation is the monitoring throughout the five years during which the investment and the 200 new jobs are maintained. What is the profile of companies to which FinExpert has provided consultancy? Currently, FinExpert’s state aid client portfolio numbers over 10 big investors whose applications have resulted in a new financing agreement. The state aid approved for the projects assisted by FinExpert exceeds EUR 150 million. The most successful scheme – judging by the volume of the submitted requests for financing and the issued agreements – is the one instituted via HG 1680/2008 (open until the end of 2013) which targets initial investments of at least EUR 5
Courtesy of FinExpert
Finance is also preparing a state aid scheme for SMEs, financed from the state budget. “We hope that from June 1 we will also start this new scheme, which will be available for longer than this one and will have a quite substantial budget,” said Stan. “One of the issues that SMEs in Romania are currently facing is that once they have reached a certain level, the level of the entrepreneurship of subsistence, their growth opportunities are limited. One major limiting factor is that there is no capital or investment market that allows them to go from the level of several tens or hundreds of thousands of euro, where they can still find angel investors up to the stage where they can be on the radars of the large private equity funds that are currently present in Romania. If I look at the investment segment between EUR 300,000 and EUR 10 million, the range of investments in the Romanian market is very poor,” Sergiu Negut, transformation partner at Wanted Transformation Consultancy, told BR. He suggested creating a platform where, for instance, 200 investors from Romania put up EUR 100,000 each, and the EUR 20 million fund created could be matched with an additional EUR 20 million from the government via the Ministry of Small and Medium Enterprises. “This would create a fund of EUR 40 million through which 20-30 such investments could be made and which would facilitate the growth of Romanian businesses,” he argued. In response to the Romanian IT&C survey carried out by Boyden Global Executive Search, which was based on a brief questionnaire sent out to HRDs, business directors, board members and CEOs in the IT&C industry in Romania, 80 percent of respondents said new market challenges have appeared in 2013, compared to roughly 53 percent in 2012. In 2013, some 53 percent have applied measures to increase innovation and creativity within their company, as compared to 33 percent in 2012. On the other hand, just 40 percent have applied cost-cutting measures in 2013, a decrease from 46.7 percent in 2012. Improving leadership capabilities also lost ground on these executives’ agendas, with 33 percent taking these kinds of measures in 2013, down from 53 percent in 2012. Interest in increasing employment motivation has remained at the same level since 2012.
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million leading to the creation of at least 50 new jobs. Most companies that secure state aid belong to the industrial sector: 48 percent from the automotive sector, 7 percent are in car and equipment manufacturing, 7 percent come from the medical sector, 4 percent from the plastics industry, 4 percent from tourism and 30 percent from other industries. Most companies have concentrated their operations in western and southern Romania, mainly in Prahova county. For the state aid scheme instituted via HD 797/2012, we have received numerous requests for consultancy (at least five-seven per month). Unfortunately, few projects prove to be eligible, meaning they fail to fulfill all criteria. Most of these companies are located in the economic centers of Bucharest, Iasi, Cluj and Timisoara, which are in fact important suppliers of skilled labor. Are these companies generally multinationals? One of the conditions imposed by the government decision is that only a company registered according to Law nr. 31/1990 can submit an application for state aid. Indeed, most of these companies are part of multinationals. Very few firms with solely Romanian capital can fulfill the selection criteria. Essentially,
How do you comment on the short period in which companies can submit their applications? Regarding the January-March time span, we cannot talk about lack of financing but only the fact that the state budget for 2013 was only approved in March. During this time, the submission of financing applications for all ongoing schemes was suspended. Since it has opened, everyone is aware that this scheme is valid only until the end of 2013. It is true that the time is short, but since we are talking about a relatively low budget compared to the state aid scheme supporting durable economic development, HG 1680/2007, I believe there is enough time for submission and approval for companies that have clear development projects for the next three to five years. It is very important to mention that applicants must submit their application in due time so that the documentation can be analyzed and the financing agreement issued by December 31, 2013. The scheme has been criticized for favoring multinationals and restricting Romanian companies’ access to financing. What is your view? In my opinion, based on discussions with companies in the field, from the viewpoint of the required number of new jobs, the state aid scheme does not stimulate local Romanian investments. Large companies, multinationals, that have the ability to create at least 200 new jobs will most likely recruit existing employees working for smaller local firms. IT is among the few sectors, if not the only one, where both the salaries and the number of employees have increased, as this is the field where companies are still hiring, but it appears there are not enough candidates. In theory, firms with Romanian capital have equal chances of access to financing, but usually they do not meet the imposed criteria. otilia.haraga@business-review.ro
www.business-review.ro Business Review | April 15 - 21, 2013
8 CSR
Transparency slowly emerges on local CSR market The Romanian corporate social responsibility (CSR) scene has changed steadily over the past few years, making significant strides toward maturity. Companies have started to take a more strategic approach to CSR projects, with social economy programs and other long-term schemes coming to the fore. ∫ ANDA SEBESI Long-term programs with a significant impact on communities and the environment have replaced temporary ones with short-term results. Education in all its forms, the environment and the social economy are some of the areas of interest for many large companies in Romania. But what do the figures say about the investments made in this field on the local market? Companies have invested EUR 28.5 millions in CSR projects in Romania in the past two years, of which over 50 percent was spent in 2011, according to a study conducted by CSRmedia.ro based on public statements, interviews, CSR reports, press releases and other communications from companies between January 2011 and December 2012. The research also found that the majority of CSR investments in 2011 were made by companies in the oil, telecommunications and banking industries. Dragos Tuta, managing partner at The CSR Agency, a management consultancy company specialized in CSR and sustainability, says that at present it is mainly multinational companies operating on the local market that follow the principles of sustainability when designing their CSR strategies. “They do it either at the recommendation of the group’s representatives or because they have a very determined and ambitious CSR coordinator,” says Tuta. In his opinion, the only employee that can determine a company’s degree of “responsibility” to its stakeholders is the general manager. “Without a determined and well trained CEO in the field of sustainability, we can’t talk about an involved management team, clear results and objectives for a CSR coordinator or strategic priorities and efficient projects. As a result, an involved CEO is the minimum condition for responsibility in an organization,” adds the consultant.
Green planet: the environment has become a staple of local firms’ CSR efforts
Social economy gains ground While in other countries social enterprises play a significant role in the economy, Romania is still far from being a flag-bearer for the social economy. But there is great potential for the future as the legal framework that regulates these concepts is becoming clearer. This potential has started to be capitalized upon by several companies that have decided to invest in dedicated CSR projects. For example, at the end of January Petrom in partnership with NESst Foundation launched the Fabricat in Tara lui Andrei competition, which aims to develop social businesses in local communities in Romania. In March, a jury selected 20 finalists from 512 applicants,
with the companies who got the nod drawn from agriculture, the textile industry, education, wood-processing, vulnerary herbs, food, construction materials, manufacturing and furniture. The 20 finalists will be provided with consultancy to help transform their idea into a business plan and will receive EUR 1,500 to conduct local research in their communities. By the end of this year, the 10 program winners will receive a total grant of EUR 350,000 to start their social businesses with help from Fabricat in Tara lui Andrei experts in fields such as financial management, legal, marketing and distribution. “Fabricat in Tara lui Andrei has two major objectives: to create jobs and ameliorate
some social problems facing Romanian communities,” says Mona Nicolici, manager of community relations at Petrom. “We designed this project as a complex competition that, first, educates participants in the spirit of social entrepreneurship and, second, offers them financing to start a sustainable business. I think that social businesses can in time become a recipe to solve the problems of Romanian society.” Elsewhere, UniCredit Tiriac Bank has also decided to support social economy projects. Last year the lender, along with NESsT Foundation, gave financial support to four projects selected through the Your Choice, Your Project competition. It provided exist-
www.business-review.ro Business Review | April 15 - 21, 2013
ing social enterprises that proved their worth with financial support for extending or consolidating their activity. The winners received EUR 7,500 each while UniCredit’s employees voted for one of them to receive an additional award of EUR 2,000. “During this difficult time, social entrepreneurship is an efficient solution through which we can intervene in areas that need support, involving the targeted beneficiaries directly,” says Anca Nuta, director of identity and communication at UniCredit Tiriac Bank. “It is an excellent example of using business tools to generate social effects and contribute to the development of the community we are part of. Although social enterprises are new in Romania, UniCredit Foundation has been developing projects since 2007.”
Companies and NGOs join hands Currently, many companies on the local market are working in partnership with NGOs to develop environmental, health, educational and cultural projects for
CSR 9
local communities. Meanwhile, local communities, through NGOs, have adopted new forms of fundraising to support local development. This is because the Romanian state has been unable to finance NGOs’ projects, while the number of social problems has increased significantly. “A partnership between a company and an NGO is the result of a natural step in the development of the community and CSR projects initiated by companies. Through such partnerships, NGOs help communities that cannot support themselves, while companies develop sustainable CSR projects through ongoing and long-term sponsorship programs,” say representatives of Vodafone Romania. Over time, the company has worked with many NGOs, supporting emergency services such as Salvamont (since 2004), SMURD (since 2005) and Salvamar (since 2007). The Vodafone Foundation has also supported various NGOs in fields including health, education and the prevention of family abandonment since it was set up, back in 1998.
Volunteering is the key to success
CSR programs has an even greater impact. According to Raiffeisen Bank data, Companies across a range of industries volunteering has helped employees to have started to engage their employees improve their personal, management in various stages of their CSR projects, and work efficiency and had a signifiwith Raiffeisen Bank and BRD-Groupe cant individual impact. For example it Societe Generale two such examples increased widely workers’ ability to from the banking industry. “The proj- solve problems (20 percent) and comects we support would not have been as municate (40 percent), and improved to successful without Raiffeisen Bank’s some degree their negotiation skills (28 volunteers. Our colleagues’ support and percent), decision-making (58 percent), involvement in our projects and their leadership abilities (43 percent), attenexpertise in different fields of activity tion to the company’s objectives (48 have helped us to increase the impact of percent) and attention to customers (38 our contribution to the community,” percent). say representatives of the lender, adding that the number of employees Companies reap benefits of involved in volunteering has increased sustainability reports from one year to the next. “Over 200 So far, several companies publish their Raiffeisen Bank employees participated sustainability reports on the local marin volunteering activity and spent an av- ket, including Coca-Cola HBC Romania, erage of one working day on commu- Heineken, GlaxoSmithKline and Raifnity programs in 2012– three times more feisen Bank. Publishing a CSR report than the previous year.” United Way should be a crucial step for the stakeand financial education programs are holders of all companies. But Tuta of the most popular among the lender’s The CSR Agency says that the local marstaff. ket is different. “No one asks companies Involving your employees in your for a CSR report and in my opinion they
www.business-review.ro Business Review | April 15 - 21, 2013
10 CSR
won’t for the next three-five years in Romania. While the European Commission will ask for this reporting to be compulsory, this will not change the so called ‘state of the nation’,” says Tuta. In his opinion the main benefit of reporting is an internal one. “Companies learn to measure the impact and identify much more easily the strategic directions they need to take. In the first two years of reporting the non-financial results, every company makes an effort to learn, adapt and understand both the technical issues and sustainability principles,” adds Tuta. The consultant notes that it is compulsory to use reporting guides such as the Global Reporting Initiative (GRI) or Global Impact because only with a precise set of indicators and clear reporting principles can you measure and see the impact every year. Laura Sgarcitu, CSR coordinator at Coca-Cola HBC Romania, says that more and more companies have got involved in CSR activities in the past few years, and a more strategic approach in this field has emerged. “Companies are presenting evidence of more planning and vision in their involvement in CSR projects. That’s why I think that the next natural step will be to start reporting these activities,” says Sgarcitu. Coca-Cola HBC Romania, for example, launched its first country sustainability report last year. It is also the first such report in the FMCG industry that meets the international regulations in the field (GRI). The GRI reporting standard is a system based on indices, which enables the company to see progress from one year to another. “The sustainability report helps us to evaluate better our local actions and get precise and relevant results for our areas of interest. It is also proof of transparency and commitment to the community. Through it we can inform all of our stakeholders about the projects with which we intend to amend things: to protect sources of water, increase the recycling rate, support the development of communities or encourage a balanced lifestyle,” says Sgarcitu. Another company that has published its sustainability report is Heineken Romania. The brewer launched its first issue back in 2010 and its objective is to track the progress the company has made against its Brewing a Better Future Agenda. “Brewing a Better Future represents our long-term global ambition to become the world’s greenest brewer by 2020,” says Onno Rombouts, managing director at Heineken Romania. “We have implemented this sustainability strategy in Romania and we have added local ambitions and programs to it. Our annual
sustainability report measures our ongoing evolution against the targets set both at global and local level, and outlines our plans in each of the three main areas of the sustainability agenda: the environment, society and the communities where we operate.” In his opinion, companies that already publish their sustainability reports with clear and relevant information prove their transparency and respect to their external stakeholders. “The fact that companies in Romania have already started to publish sustainability reports sets a standard that will be followed by the companies that start publishing their own sustainability report. In fact, the area of sustainability will become more and more competitive and this will generate progress,” predicts the managing director. A sustainability report is the best argument to show how CSR is part of a company’s business strategy and integrated in its sustainable development plan. “In this context I would say that sustainability reporting is a sign of the maturity of the Romanian CSR market and of the responsibility of the whole local business market,” adds the representative of Coca-Cola HBC.
HR in CSR
Remit of a CSR specialist: l To understand the way a com-
pany, market and the business environment works; l To understand the principles of sustainability and the way they reflect on the business environment and company; l To know from the start that CSR is not a communication field and does not mean sponsorship, donations, planting trees, recycling or cleaning up polluted areas; l To take charge of management activities; l To coordinate department managers in stakeholder engagement and research activities, helping them identify and set strategic objectives, and find the most efficient strategies and projects in order to achieve their goals; l To evaluate and report the impact for each indicator and to follow up with the company’s stakeholders.
Tuta of The CSR Agency says that there are three major challenges in the training of CSR specialists on the local marSource: The CSR Agency ket: the lack of success models and valuable debate about this field, lack of education and experience in the field of ronmental and education projects as management and specialized know- these seem to be among Romanian how. “Those who get on working in CSR society’s top priorities. Carpatcement do so accidentally,” says Tuta, of the Holding’s CSR strategy consists of state of the local market. In order to several main areas of action: involvecounteract this situation and to support ment in the local communities where the development of the market, The the company operates (education, CSR Agency has initiated two projects environment, infrastructure), the envias part of the CSR Think Tank (the Com- ronment, ensuring a proper work envimunity of CSR Coordinators in Roma- ronment, promoting human rights, nia): CSR Juniors and CSR Debates. permanent improvement of work, While CSR Junior seeks to provide train- health and safety conditions for its eming, practice and professional support ployees and ensuring freedom of assofor youngsters who want to start a ca- ciation and collective negotiation. reer in this field, CSR Debate intends to “Quarry Life Award was one of the create themed debates between the most important environmental projCSR coordinators of the largest compa- ects developed by Carpatcement in nies in Romania. “Last but not least, the 2012. It was a scientific and educational internet is full of articles, books and competition developed at internacourses about CSR and sustainability. tional level that sought to discover new The problem comes just from the huge ideas about the preservation and proamount of information, lack of organi- motion of biodiversity. The project will zations with authority and many wrong also continue this year too,” says approaches in the field, which appear Bogdan Arnautu, communication reasoned in detail and sometimes even manager at Carpatcement. He adds credible on the internet,” adds Tuta. that another area of sustainable development for the company is Environment and education using alternative fuels in the cement manufacturing process. “Carpatcelead the way Many companies are focusing on envi- ment was the first cement producer in
Romania that used alternative fuels in its plant in Deva, back in 2004,” adds Arnautu. Apa Nova Bucuresti is another company that has the environment as a priority in its CSR strategy, because it is the subsidiary of Veolia Eau in Romania, the water division of Veolia Environment group. “The group is remarkable in the fields of sustainable development and environmental services. On top of that, we work with a precious natural resource, essential for all forms of life, which is more affected by the impact of human activities on the environment,” says Oana ErsovaRanetti, public relations specialist at Apa Nova Bucuresti – Veolia Apa. The company’s environmental projects include: Veolia Park in Tulcea (EUR 30,000); populating the Danube Delta with sturgeons (EUR 10,000); the repair of the Sfantu Gheorghe water treatment plant and addition of a new chlorination station (EUR 30,000); the repair of the bulrush netting workshop in Mahmudia (EUR 10,000); forestation campaigns conducted individually and in partnership with Viitor Plus Association (EUR 15.000); supporting the campaign, Saving the Curly Pelican in the Danube Delta (EUR 10,000); Reciclonada (collecting all types of recyclable waste); and the Recicleaza Pentru Copaci internal project in partnership with Viitor Plus Association. “Environmental issues in Romania are extremely pressing. It is no different from Europe or worldwide, but Romania needs to mobilize more to protect it in a concrete manner with tangible results in this field,” urges Ranetti. Education is another priority for many local companies. For Actavis, it has been a significant part of the firm’s CSR strategy since the beginning. “Investment in educational programs became a natural priority of our CSR activity. The first step we made was 20 years ago with the Actavis Sustine Performanta project, devised to reward the high marks achieved by students at the International Chemistry Olympiad. We decided to extend the project to universities this year,” says Ana Maria Draganica, communication manager at Actavis. With the Actavis operations team (Sindan Pharma manufacturing) the company will support the medicine section of the Studentul Anului project, helping students from the medicine and pharmacy faculties. “In an extremely competitive and dynamic environment, CSR programs help us to position ourselves correctly and secure loyalty to the Actavis brand,” concludes Draganica.
www.business-review.ro Business Review | April 15 - 21, 2013
12 CSR
RANK
CSR Projects in 2012 COMPANY
1
Actavis
2
Apa Nova
3
BCR
4
Carpatcement
AREA OF ACTIVITY
TYPES OF PROJECTS
PROJECTS IN 2012 (SELECTION)
Pharmaceuticals
Education; Healthcare
Actavis Sustine Performanta (Actavis Supports Performance); Diagnostic Mobil: Cancer de San si Cancer de Col Uterin (Mobile Diagnosis: Breast and cervical cancer); ECAD
Water management, treatment and distribution
Environment; Education
Aparati Farul lumii - Biodiversitatea! (Defend the world's lighthouse - Biodiversity!); Faceti ceva care sa dureze! (Build something to last!); Cand biodiversitatea da viata orasului meu (When biodiversity brings my city to life); Recicloniada; Tinerii urbani de altadata (The urban youth of times past)
Banking
Volunteering; Financial education
Start Business; Livada BCR (BCR Orchard); Banca de alimente (Food bank); Finantele Mele (My finances); Scoala de Bani (The Money School)
Constructions
Environment; Education Local communities; Humanitarian actions
Sfatul Batranilor (Community Advisory Panel); Sfatul Jurnalistilor (Journalist Advisory Panel); Access la Educatie (Access to Education); Quarry Life Award Premiile Profesionale Carpatcement (Carpatcement Professional Awards - value of the CSR budget in 2011 and 2012: EUR 250,000 per year)
5
Coca Cola
FMCG
Environment; Education
Padurea Pedagogica (The pedagogical woods); Adopta un rau de la izvoare pana la varsare (Adopt a river from springs to flow); Grija pentru mediu incepe din masina mea (Concern for the environment starts in my car); Talent on board!
6
Cosmote
Telecommunications
Environment; Education; Healthcare
Green Office; Adopt a forest; Custom of Love Cosmote Scholarships Program
7
E.ON
8
GlaxoSmithKline
9
Heineken
10
Holcim Romania SA
11
Orange
Utilities
Pharmaceuticals
Environment; Education
Healthcare; Education
Energie in scolile copilariei (Energy in childhood schools – project value > EUR 210,000 ); Energie pentru viata (Energy for life); Bicicleta de la tara (The countryside bike) Sanatatea Copiilor din Delta Dunarii (The health of children in the Danube Delta); Fiecare copil conteaza (Every child matters);The health component of the Fiecare Copil in Gradinita (Every child in kindergarten – the health component for 3 years : EUR 150,000); HOSPICE - Casa Sperantei partnership
FMCG
Sustainability; Supporting local communities
Heineken pentru comunitati (Heineken for Communities); Alcohelp in partnership with Aliat
Constructions
Environment; Education; Health; Sport
Let’s keep the waters clean! project initiated by the National Administration of Romanian Waters; Household waste management in the Apuseni Natural Park; Build your future with Corporate Dynamics International
Telecommunications
Education; Volunteering; Environment; Healthcare
Tu pentru comunitate (You for the Community); The E-sign program; Adept Transilvania; Muzeul tuturor (Everyone's Museum)
12
Petrom
Oil &Gas
Education; Environment; Social entrepreneurship
Parcurile Viitorului (Parks of the future); Think Ahead; Campania Nationala de pregatire pentru dezastre (National campaign to educate for disaster situations); Olimpicii Petrom (Petrom Olympians); Resurse pentru viitor (Resources for the Future) Tara lui Andrei
13
Raiffeisen Bank
Banking
Environment; Financial education; Sports; Arts and culture; Social
I'Velo, StudentObike; ABCdar bancar; Bucharest International Arena, Sport Arena Streetball; Partnership with SoNoRo Festival, Teatrul Act and D'aya theatre company; Partnership with United Way, Ovidiu Rom, Hospice Casa Sperantei
14
Rompetrol
Oil &Gas
Environment; Healthcare; Culture; Education
Impreuna pentru fiecare (Together for everyone - value of the project: RON 45,000 -90,000 per project) George Enescu Festival; Fiecare copil in gradinita (Every child in kindergarten)
Healthcare; Public awareness; Supporting volunteers
Parteneriat pentru viata (Partnership for life); Solutia de Telemedicina (The Telemedicine Solution); O viata poate depinde de tine (A life can depend on you); Voluntar de profesie (Professional Volunteer);O viata poate depinde de tine (A life can depend on you)
15
Vodafone
Telecommunications
www.business-review.ro Business Review | April 15 - 21, 2013
CITY 13
¡Viva flamenco! in the words of a genre master The Spaniard Juan Miguel Cañizares is one of the leading figures on the flamenco guitar scene worldwide. Critically acclaimed for his dazzling performances, his style is a rare combination of brilliance and sensitivity, as he demonstrated recently on the Romanian Athenaeum stage. BR attended the show and talked to Cañizares about the art of understanding flamenco music.
Photo: Mihai Constantineanu
∫ OANA VASILIU How did you start playing the guitar? My uncle won a guitar in a lottery and gave it to my father, who took some guitar classes, but unfortunately wasn’t very keen on handling it. On one occasion, my older brother was at my father’s guitar class, so he took it and started playing. The teacher was very impressed by my brother’s guitar-playing ability, so this is how this instrument entered my family. I was almost six when I started playing it, encouraged by my brother. What is flamenco music for you? And for the public worldwide? Flamenco music is definitely a language which I use to express my emotions and feelings, but I also manage to compose my own music through it in order to get to the listener’s sensitivity, as well as my own. When it comes to the international public, flamenco is a passionate music, which does not have to be “understood”; the public need only feel it and experience the sounds. What are the typical ingredients of a classical flamenco concert? I don’t think there is a special or a conventional formula for a flamenco concert, neither for the players, nor for the dancers. We actually come up with
an interpretation of our own feelings based on the moment of the show, with no rules or procedure. What do you think about the info that there are more flamenco schools in Japan than in Spain? To tell the truth, I find it very surprising, but also admirable – if there are Japanese who have made a lifestyle of flamenco, despite having a great culture of their own, this says to me that flamenco is definitely a universal language. What can you tell me about the album you have been promoting in Romania, Cuerdas del alma? The disc is my fifth album and represents my contribution to today’s flamenco guitar world. The title means that we, the people, have strings in our soul, and we also have experiences and intentions. I believe that the soul is similar to a musical instrument, the guitar in this case. How your soul sounds depends on how it’s tuned. The album consists of several songs that conduct you through different moods: joy, sadness, excitement, happiness. When it comes to intentions, they are like your wishes and depend very much on your ability to transform them into reality. This is a short summary of the album I presented on stage at the Romanian Athenaeum. oana.vasiliu@business-review.ro
www.business-review.ro Business Review | April 15 - 21, 2013
14 CITY FILM REVIEW
DON’T MISS MOGOSOAIA CLASSICAL FEST
Beasts of the Southern Wild DEBBIE STOWE Director: Benh Zeitlin Starring: Quvenzhané Wallis, Dwight Henry On at: Cinema Union, Cinema Digiplex
The palace is located about ten kilometers away from Bucharest
∫ OANA VASILIU For five years now, culture fans have been making an annual pilgrimage to one of the most beautiful landmarks around Bucharest, Mogosoaia Palace, for a top-quality classical music festival that attracts artists from all over the world. This year’s event runs from April 20 to May 26. The opening event, at 17.00 on April 20, commemorates 200 years since the birth of Giuseppe Verdi. Soprano Sorina Munteanu, tenor Hector Lopez and sopranos Veronica Anusca and Alice Lopez will play arias and duets from operas including Rigoletto, La forza del destino, Luisa Miller, Il Corsaro and Un ballo in maschera. Other events include: April 21 – Concert by the winners of the third edition of The Road to Celebrity (Eufonia Quartet, soprano Rodica Vica, cellist Mircea Marian, pianist Maria Diana Petrache). April 27 – Commemorative Paul Constantinescu and David Popper
concert, featuring cellist Alexandru Morosanu and pianist Tatiana Morosanu. April 28 – Franzi Danzi, 250 years since his birth. May 11-12 – Arcangello Corelli, 300 years since his birth, featuring baroque violinist Melinda Beres and harpsichordist Raluca Enea. May 18 – Francis Poulenc, featuring violinist Raluca Stratulat and pianist Adriana Toacsen. May 19 – Francis Poulenc, featuring oboe player Ana Maria Radu, clarinetist Emil Visenescu, flautist Ion Bogdan Stefanescu and pianist Verona Maier. May 25 – Ludwig van Beethoven and Paul Constantinescu, featuring pianist Horia Mihail. May 26 - Quartet Recital ArtMusik, violinist I Marius Biclea, violinist II Emil Stegar, viola Florin Matei and cellist Dan Joitoiu. oana.vasiliu@business-review.ro
FOUNDING EDITOR Bill Avery PUBLISHER Anca Ionita EDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - senior journalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai Constantineanu
ISSN No. 1453 - 729X
LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean
In an impoverished Louisiana bayou community, a six-year-old girl and her father try to ride out Hurricane Katrina. While the child hallucinates about extinct cattle. It’s an unusual plot and an unusual film, one that both captivates and baffles. It’s also difficult to categorize. Although it features disaster, Beasts of the Southern Wild is not a disaster movie – the catastrophe is a side event that merely makes the characters’ subsistence lives even tougher. There’s fantasy, parable and poetry in there, and the result is a lyrical meditation on themes from community to environmentalism. The heart of the film is Hushpuppy (Quvenzhané Wallis, improbably playing a character whose name is more quixotic than her own), being raised in a dilapidated trailer by her ailing dad Wink (Dwight Henry). Although Wink is a violent drunk, the film refuses to condemn him (perhaps owing to the greater slack society cuts imperfect fathers). In times of fear, Hushpuppy calls out to her mother, who may be dead or just absent. Despite the appalling conditions, the child seems fairly happy, and she and Wink live without complaint in the area they call the Bathtub, which is the wrong side of the levee and so largely ignored by the government. Indeed, normal social mores are suspended in the Bathtub: the people follow their own calendar, kids attend a ramshackle establishment that passes for a local school and different races rub along together, united by their poverty and carpe diem exuberance. And this is one thing that makes the movie morally troubling. Though director Benh Zeitlin avoids making overt political comment – there is no Bush bashing – the warmth with which the Bathtub eccentrics and their idiosyncratic lifestyle are depicted cannot help but sentimentalize grinding poverty, alcoholism and implicitly child abuse.
EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu, Sales executives: Bogdan Spirea, MARKETING Ana-Maria Stanca, Catalina Costiuc, Andreea Rusu PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
Wild world: Quvenzhané Wallis
Another disconnect is between Hushpuppy the character and Hushpuppy the narrator. While a child raised in hardscrabble circumstances might gain a wisdom beyond their years, in daily life Hushpuppy is taciturn, and yet her commentary is eloquent, often philosophical. Some would also say cloying, and it’s possible to discern some environmental hectoring in the interspersed scenes of melting ice caps. The viewer’s patience may be further tested by the slow, meandering plot (I use the term loosely). There is a lengthy build-up to the storm, and a bizarre diversion when Hushpuppy heads off on an aquatic expedition to find her mother. Despite these flaws, Beasts of the Southern Wild manages to retain the viewer’s attention. This is partly because it is a refreshing departure from the formula that dominates modern movie-making. Just as the Bathtub is cut off from mainstream (and mainland) America, Zeitlin’s film is as far from Hollywood as a US movie can get. Visually, it can be alluring and striking, though the beauty is of a desolate kind, epitomized by stricken bayou landscapes that nod to Apocalypse Now. This rawness chimes with the performances (non-professional actors were used), and the intensity and precociousness of Quvenzhané Wallis’s turn – she was five when she auditioned for the part – made her the youngest Best Actress Oscar nominee. It is part of the beauty among the beasts. ∫
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