TRAVEL: The century-old Peles Castle is the host of an exhibition gathering early works by the Viennese artists Gustav and Ernst Klimt and Franz Matsc, done at the request of Romania’s King Carol I, due to open on September 15 »page 12
ROMANIA’S PREMIERE BUSINESS WEEKLY
September 3 - 9, 2012 / VOLUME 16, NUMBER 27
DROUGHT OVERCOOKS FOOD PRICES As As wheat wheat and and corn corn prices prices soar soar due due to to the the severe severe drought of the past few months, Romanian drought of the past few months, Romanian food food processors processors are are seeing seeing their their profits profits get get eaten eaten away away »pages »pages 8-9 8-9
NEWS
LINKS
POLITICS
PLUS
Billionaire cleared
Mobile marketing
Basescu’s back
Businessman Dinu Patriciu and another 11 people are acquitted by the Bucharest Appeal Court in the Petromida case, which began in 2006
Interest in SMS marketing campaigns is surging as the adoption of smartphones grows locally, leading brands to develop dedicated applications
The Constitutional Court annulled the July referendum to suspend President Basescu, leaving the opposing sides trying to govern together
What do Bucharest’s international schools offer for their fees? » page 13
» page 4
» pages 6-7
» pages 10-11
Beer, theater and classical music in town this September » page 14
www.business-review.ro Business Review | September 3 - 9, 2012
NEWS 3
NEWS in brief FMCG
ING Asigurari de Viata to invest EUR 7.3 mln through to 2016 in consultant program
Farmec Cluj-Napoca boosts 7-month sales by 12.4 percent on launch of new line
Life insurer ING will invest around EUR 7.3 million in the next four years in a program that aims to increase the loyalty of its financial consultants, according to Adrian Lupescu, CFO at ING Asigurari de Viata. The initiative, called Partener 3.0, has already started and involves the 1,700 consultants and 220 managers of ING Asigurari de Viata. The program has a training component and a benefits package that includes medical subscription, pension and life insurance. ING Asigurari de Viata has already invested around EUR 1.8 million in the past three years to provide 15 days of annual training for its consultants. In addition, starting this year, the new consultants will be enrolled in a 180day program for training and personal development. ING’s gross written premiums fell by 1.1 percent to RON 269.7 million (EUR 60.4 million) in the first half of this year versus last year, while profit halved to RON 6.9 million (EUR 1.5 million). ING Asigurari de Viata controlled 31.9 percent of the life insurance market, which totaled RON 1.7 billion (EUR 380 million) last year, according to the Insurance Supervisory Commission (CSA).
Local cosmetics manufacturer Farmec Cluj-Napoca has reported sales of RON 72.5 million (approximately EUR 42.5 million) for the first seven months of this year, up 12.4 percent y-o-y. The increase was generated by the launch of a new products line – Aslavital Mineralactiv – and a commercial campaign occasioned by the sponsorship of the Romanian women’s gymnastics team at the London Olympics, which was well received by the public, says the cosmetics producer. After its sales increased by 15.6 percent in 2011 against the previous year, totaling RON 110.9 million (EUR 26.2 million), Farmec lowered its expectations for 2012, announcing at the beginning of the year that it was targeting a turnover increase of around 5 percent.
INSURANCE Vienna Insurance Group H1 posts local loss of EUR 4.1 million as written premiums decline The local operations of Vienna Insurance Group (VIG) went into the red in the first half of this year, hit by the portfolio restructuring that reduced gross written premiums by 17 percent to EUR 236 million and lead to a loss of EUR 4.1 million. VIG is the market leader in Romania, holding controlling stakes in Asirom, BCR Asigurari de Viata and Omniasig VIG, which merged with BCR Asigurari this spring. The gross written premiums in the non-life segment fell by 22.2 percent to EUR 184 million in the first semester, while the life segment grew slightly by 2.1 percent to EUR 51.6 million. VIG saw its pre-tax profit drop from EUR 1.6 million in the first half of 2011 to a loss of EUR 4.1 million. VIG’s net combined ratio stood at 110.4 percent, which indicates that it is paying more in claims than it is receiving from premiums. The ratio grew close to 5 percent although the expenses for claims and bonuses fell by 5.3 percent to EUR 185.5 million. VIG increased its first semester profit to EUR 301 million, out of which EUR 148 million was generated in Central and Eastern Europe.
IT& TELECOM RCS&RDS makes more acquisitions in Hungary Romanian company RCS&RDS was one of the four entities that acquired nearly all the shares in Hungarian telecommunications company TvNetWork, according to an article published in the Budapest Business Journal (BBJ). The other companies involved in the transaction are Carose, based in the Netherlands, Trumbull Capital Advisers and Sjor Capital Limited, both registered in Cyprus. The four entities announced in June that they would make a concerted public buyout offer for the company’s shares, BBJ reported. The offer was made by Digi Kft on June 29 at a price of HUF 300 per share. The four owners held more than 85 percent of shares at the time, with more than 99 percent of voting rights.
Star Storage plans new IaaS, PaaS and SaaS services, boosts turnover Local firm Star Storage, which offers data hosting and protection solutions,
posted a turnover in excess of EUR 8 million in the first half of the year, up 27 percent on the same period of last year. The investments made by the company in 2011 materialized in the last half of this year when Star Storage launched the new generation of cloud services for companies under the brand StarVault. Star Storage further plans to enrich its portfolio of StarVault Cloud services in the remainder of this year with new Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS) services.
ONLINE Online payment by card still faces trust issues One out of ten Romanians who start an online transaction via card does not complete it, in spite of the fact that trust in this method of payment is on the rise. The main causes are customers’ lack of trust in the system or reluctance to reveal too much of their personal data. A survey conducted by Netopia mobilPay found that one in five respondents did not complete the order because the sum they had to pay was too large, they did not have money on the card or they simply wanted to see how the system worked. Of those interviewed, 11 percent did not wish to complete the transaction because they did not trust the system of payment or did not want to input personal data, 5 percent wanted to see how the payment could be done and another 5 percent said they realized they did not have the card on them and had to abandon the order, 4 percent ran out of battery or internet connection, while 2 percent did not know what CVV2 meant and introduced the card’s personal identification number.
PROPERTY Number of building permits up 16.5 percent in first 7 months Some 26,500 building permits for residential projects were issued in Romania in the first seven months of 2012, up 16.5 percent y-o-y, according to data released by the National Institute of Statistics. However, last month the number dropped 1.8 percent against the previous month and by 0.7 percent y-o-y. In the first seven months of 2012 the regions which reported the highest
increases for newly issued building permits were the North-East (+698 building permits), West (+641), Bucharest-Ilfov (+593) and SouthMuntenia (+513).
West Gate Studios private campus opens third building following EUR 18 million investment The West Gate Studios residential project in the Militari neighborhood, in western Bucharest, has expanded by 274 new studios and apartments to a total of 924 units, after the opening of a third building. The building required an investment of EUR 18 million, which included the land.The residential project is the first private campus in Bucharest. It offers studios and apartments for rent, targeting students and young professionals. Rents start at EUR 75 per month per person for a 25 sqm studio. At present the complex hosts more than 1,800 young people. The first two buildings were opened in 2008 and 2011. The developer hopes to reach an occupancy rate of 95 percent by October, the beginning of the university year. West Gate Studios is owned by local businessman Liviu Tudor, who has also developed the West Gate and Novo Park business parks in Militari and Pipera respectively. So far, EUR 58 million has been invested in the project.
WEEK in numbers
3.07 Eurocents is the new mobile phone termination rate as set by national telecom authority ANCOM. Termination rates are the price paid by a telecom company to another operator for finishing its customers’ calls in the latter’s network
1.9 million people are employed by the Romanian state, according to data from the Finance Ministry. This is 5,200 fewer than at the beginning of the year
www.business-review.ro Business Review | September 3 - 9, 2012
4 NEWS RETAIL
BUSINESS AGENDA September 3
McDonald's organizes an event to mark the reopening of its restaurants in Romana Square. By invitation only.
Cash-strapped Cocor sells retail space for record EUR 4 million
September 12-15
BIFE, the International Fair of Furniture and Wood Products, Furniture Fittings, Interior Decorations, Machinery and Equipment for Logging and Wood Processing, is organized at Romexpo Exhibition Center. By invitation only. Antique Market, the art objects and antiquities fair, is organized at the Romexpo Exhibition Center.
September 12-13
The National Network of Rural Development and the Ministry of Agriculture organize a conference on rural development and the next EU budget.
September 17 ∫EVENT 08:30
Business Review organizes the 11th edition of Tax&Law, an event that reviews the recent fiscal and legal changes that impact on the business environment. Find out more at http://businessreview.ro/br-events/
Tough road: Cocor has been hit hard by the recession
C
ocor Bucuresti, which owns the Cocor shopping center in downtown Bucharest, has announced the sale of 196 sqm of retail space on Unirea Blvd for almost EUR 4 million, or EUR 20,350/sqm. The transaction is a record for the local real estate market in recent years. The company did not disclose the identity of the buyer or the exact location of the retail space. The buyer will make an advance pay-
ment of some EUR 335,000 with the rest to be paid in 33 monthly instalments of EUR 110,000, said Cocor officials. The EUR 4 million deal was closed by Cocor’s internal commercial department and negotiations took two months, said company representatives. Shareholders of Cocor Bucuresti announced this July that the company was to sell several of its real estate assets, including the Cocor shopping center in
September 25-26
Blue Business Media organizes the third Romania Retail Summit at Radisson Blu Hotel. The event gathers the key influencers of the industry to discuss the changes and challenges of the market, cases and predictions.
September 27 ∫EVENT
Business Review organizes the German-Austrian Business Forum, an event that brings together representatives of the two countries that are active in the domestic economy. Find out more at http://business-review.ro/brevents/
October 18
Linked Events and Renaud organize the Leaders in Marketing event in Bucharest. Marketing expert Tim McChesney, managing director of Innuvia Partners, will be a guest speaker.
October 17 – 20
EEE-EXPO, the international fair for renewable energy, conventional energy, equipment and technologies for oil and natural gas, is organized at Romexpo Exhibition Center. Tib, the Bucharest International Technical Fair, is organized at Romexpo Exhibition Center.
downtown Bucharest, in order to raise money to repay an EUR 18 million loan it took out from BCR in 2008 to refurbish and extend the store. “There are ongoing negotiations to sell the other commercial spaces on the list approved by the shareholders. We remain committed to selling some of them in order to continue with the reorganization of the Cocor store, a process which will include changing the tenant mix and building an entertainment area,” said shareholder Daniel Stoica. Built in 1970, Cocor was relaunched in October 2010 after a EUR 24.5 million facelift meant to attract more affluent customers. The tenant mix was changed and the sales surface extended to 10,000 sqm. However, the economic crisis combined with the new positioning strategy’s failure to generate the expected results led the firm into financial difficulties. Cocor Bucuresti reported losses of RON 7.9 million (approximately EUR 1.75 million) for the first half-year, up 464 percent y-o-y, according to a company report sent to the Bucharest Stock Exchange. Its shareholders include Broadhurst Investments, Daniel Stoica, Liviu Ursan, SIF Muntenia and SIF Transilvania. ∫ Simona Bazavan
LEGAL
Dinu Patriciu cleared in Rompetrol case
R
omanian businessman Dinu Patriciu has been acquitted of money laundering, stock market manipulation and embezzlement in the six-year-old case involving the oil company Rompetrol. Prosecutors can appeal against the verdict handed down by judge Constantin Marino Marin with the Bucharest Court. They had sought a 20-year prison sentence for Patriciu. Another 11 individuals were also cleared in the case. “I always knew I was innocent so I think it’s normal what happened today. There may be an appeal, but I believe that taxpayers’ money could be used better,” said Patriciu, quoted by Mediafax newswire. Patriciu, 62, an architect by education, tops the local 2011 Forbes billionaire list and had an estimated wealth of USD 1.5 billion as of March 2012. He ranks 854th in the world rich list, and has investments in media, energy, real estate, banking and IT&C. Patriciu was charged in 2006 with seven offenses that included the disclosure of privileged information, money laundering and the setting up of a criminal group. All this happened while he
Cleared: businessman Dinu Patriciu
was administrator and CEO at Rompetrol. In 1998, he bought the oil giant, at the time an ailing company with losses of EUR 1.5 million, which was subse-
quently turned into a group and listed on the Bucharest Stock Exchange. Nine years later, KazMunaiGas bought a 75 percent stake in the group for EUR 1.6 billion. Prosecutors accused the businessman of transferring USD 85 million of Rompetrol funds between group companies in order to hide the money between 1999 and 2091, when he was administrator of the oil company. The sum should have been paid in tax, but was instead lost through contracts of assignment of receivables, loans and novation within companies belonging to the Rompetrol Group. Furthermore, Patriciu was accused of manipulating the shares of Rompetrol Rafinare and transferring the illegal revenue to tax havens or various accounts in Romania and abroad. He was charged with having set up a criminal group with two US investors and laundering money by using privileged information and from the market manipulation of Rompetrol shares. The illegal funds were then laundered through the accounts of individuals and firms affiliated to the group. ∫ Ovidiu Posirca
www.business-review.ro Business Review | September 3 - 9, 2012
NEWS 5
MEDIA
Public broadcaster to axe 980 jobs in restructuring process
T
he Romanian public television service SRTv is expected to let go of approximately 980 employees following an announced restructuring process aimed at cutting costs. The broadcaster currently has cumulated losses of EUR 145.6 million. The staff-reduction measure was adopted by SRTv’s board of administration as part of its economic recovery program. TVR’s staff will be cut to a total of 2,340 once the recovery program is implemented. According to a statement by SRTv, the program is meant to keep its editorial output and resources costs within its monthly income. At the same time, the scheme is intended to reposition the station’s editorial policy, while adapting its resources to the institution’s current financial constraints. The plan was approved with 10 votes in favor out of a total of 13. SRTv management had to come up with a restructuring plan for the public television service after the government passed an emergency ordinance on June 27 giving the institution’s board of administration 45 days to approve an economic recovery plan, including financial and HR restructuring and the payment of its fiscal debts within
six months. Claudiu Saftoiu, the president and general director of SRTv, told Mediafax news agency that it would take seven and a half years to pay off TVR’s debt. Also as part of its economic recovery program, TVR announced on August 10 that two of its channels – TVR Info and TVR Cultural - would stop airing. TVR 2 will take over the remit of TVR Cultural and be rebranded as TVR 2 Cultural, alongside TVR 3. TVR Info ceased broadcasting on August 15. During last week’s budget revision the public television service received an additional EUR 14.5 million. The bulk of this sum will go to the National Radiocommunication Company (SNR) which will ensure the transmission of the channels in the portfolio of the institution. In December 2011 the Romanian Parliament approved a budget of EUR 33.6 million (more than RON 150 million) for the functioning of the national public television service for 2012. Following the budget revision approved last week by the government, the institution will have a total budget of more than EUR 48 million (RON 215 million). ∫ Staff
ENERGY
E&Y puts Romania 13th in renewable energy country attractiveness index
R
omania has been ranked 13th out of 40 in the All Renewables Index for August 2012, which ranks countries on their renewable energy attractiveness, put together by Ernst & Young. The index provides an overall score for all renewable energy technologies. It combines individual technology indices as follows: the wind index makes up 55 percent (comprising an onshore wind index and offshore wind index); solar 32 percent (comprising a solar photovoltaic [PV] index and concentrated solar power [CSP] index); and biomass and other resources 13 percent. Romania received 47.7 points out of 100 on the All Renewables category of the index, 53 points on the Wind index, 56 points on the Onshore Wind index, 39 points on the Off Shore Wind index, 40 points on the Solar index, 45 points on the Biomass index, 41 points on the Geothermal index and 46 points on the Infrastructure index. In the last ranking, Romania was
in 14th place. In a commentary accompanying the release of the study, the Big Four firm notes that Romania’s future attractiveness in renewable energy should stem from coherent programs making these types of investments inviting and which support investments in new technologies such as energy services or computerized energy networks. Saulius Adomaitis, partner and leader of the Business Assistance department of Ernst & Young Romania, advocated the country “drafting a clear energy strategy, which sets priorities for the development of the most competitive electricity generation sources and offers the adequate market mechanisms to facilitate financing of longterm projects. In this way, Romania will be able to balance the increasing role of renewable energy sources with the adequate development of its transport network, the baseline load and the capacity reserve.” ∫ Staff
www.business-review.ro Business Review | September 3 - 9, 2012
6 LINKS
profile of the revenues. “It is very important to know as much as possible about the database being used and include the click-toaction feature to be able to monitor the response rate. It is equally important that the message is customized depending on the user, the time when the messages are sent and the anticipated time at which the message will appear on the customer’s phone,” says Bogdan Apostol, general manager at Voxline Communication. However, he points out that most important of all is the message that is sent to the consumer. “We will always have a very good response rate when the information that is transmitted is valuable for the receiver,” he says.
Mobile marketing yet to reach its stride in Romania
Smart operator: high-tech handsets are driving the use of more sophisticated mobile marketing
Text appeal: companies look to mobile marketing The most widely used phone application in the world, the SMS, is still proving to be the main feature in the mobile marketing campaigns of various client-focused companies – but for how long? As the saying goes, there is more than one way to skin a cat, and to reach the proposed goal, a short message needs to “speak volumes” to the right person, which of course involves planning and book-keeping. ∫ OTILIA HARAGA The nuts and bolts of an SMS campaign As in the case of any business endeavor meant to bring profit, there are certain steps that a company should take when implementing an SMS campaign. Before the campaign, the first step is defining the target group and then establishing the message: this should be very simple and concise, and clearly state how the client will benefit. Secondly, it is important to set the target, and thirdly, establish how to measure it, Antonio Eram, CEO of Netopia, tells BR. During the campaign, the company in question should use a platform that allows it to watch the progress and adjust the message in real time. Tracking the results after the campaign is also essential, he says. The first post-campaign step should
be to analyze the customer conversion rates after the launch, by comparing the results with the initial targets. Then the feedback from the final users who were converted by the campaign must be examined. Last but not least, the feedback from the final users who did not yield a positive result should also be analyzed, he explains. Eram says, “Our recommendation is that every time an SMS campaign is implemented, three features – the cost of the campaign, the profit of the campaign and the profit of the initiative – should be monitored, so that the company implementing it can understand and explain why a certain campaign was successful or not, and, most importantly, make use of the tools that reveal what must be improved during future initiatives.” Gabriela Voinea, senior product manager at Orange Romania, outlines another important aspect: the short
numbers used in the campaign should be easy for customers to remember. Also, these numbers should be used “exclusively” by one brand, and cannot be used by several brands because there will be problems related to the mechanisms of the campaigns. The messages transmitted by the client must be followed by a confirmation of message receipt as well, Voinea says. “One of the most important features that decide the success of an SMS campaign is choosing a target that is as close as possible to the profile of the consumers of the product/business in question,” Horatiu Dimulescu, manager, online and mobile advertising at Vodafone Romania, tells BR. Vodafone sets out more than ten targeting criteria to companies in order to select potential consumers as carefully as possible, including age, gender, the type of service, the type of handset and the
Mobile marketing grew 10 percent last year to a total of 100 million SMS, according to data from Netopia. This year, the number of messages via mobile phone will go up by 8 percent to about 108 million. “Fortunately, brands have come to understand that ignoring marketing via mobile phone – an instrument that has unique characteristics compared to any other promotional means – is a mistake. We have noticed that more and more firms are using mobile marketing, the majority of which start with SMS campaigns. Companies that have a history of using mobile marketing are already going to the next level, adjusting their websites for the mobile phone and creating applications,” says Apostol. Telecom operators confirmed for BR the surge of interest in SMS campaigns. Orange Romania has witnessed a hike in the volume of SMS of this type of approximately 20 percent this year compared to the previous one, says Voinea. Vodafone Romania has found the same. “Over the past two years, the number of campaigns has increased significantly: we are talking about a year-on-year growth that exceeds 20 percent. We have over 200 partner companies that have used mobile advertising services and more than half of these use them frequently. The main industries that use these services are banking, retail, FMCG, restaurants and auto,” Dimulescu says. In the case of Cosmote Romania, “the last three years have seen the advertising market through SMS double,” say representatives of the company. One of the reasons for brands’ increasing interest in mobile marketing has been the spike in smartphone penetration in Romania, which has persuaded brands to develop dedicated applications, say iLeo representatives Mugur Patrascu, managing partner, and Dan Virtopeanu, independent consultant in mobile marketing. They point out that another visible trend in 2012 is the introduction of QR codes, especially in outdoor campaigns, in the print media
www.business-review.ro Business Review | September 3 - 9, 2012 these types of campaigns, say iLeo (still sporadically) and in retail. As a rule, mobile marketing con- representatives. Campaigns via SMS make up the tinues to play a limited role in a campaign’s communication mix, bulk of mobile marketing, with the according to Voinea. The industries pundits asked by Business Review that are the most interested in this putting it at between 80-90 percent. promotion channel are tobacco, “Such a high ratio is to be expected because SMS remains the easiest apFMCG, and banking and finance. However, the response rate to SMS proach to marketing via mobile phone campaigns depends less on the spe- and last but not least it is a technology cific industry the brand is part of, and accepted on most mobile devices,” more on the demographic – young says Apostol. Pundits place the current market people are more open than older ones – and how the campaign is imple- value at EUR 7 million. “The growth of the market in 2012 will exceed 10 mented,” say iLeo representatives. “It is already well known that there percent, and it will surpass EUR 8 milis a certain customer segment called lion in value. In 2013, the market ‘offer hunters’ who delay the purchas- should reach EUR 10 million,” say ing decision until they find this kind iLeo representatives. They add that the number of comof promotional offers,” say Cosmote panies who want to implement camrepresentatives. For SMS push campaigns (ed. note: paigns via SMS has increased by more standard communication campaigns than half, but the number of those of sending SMS to a database), the re- who have actually done so was sponse rate varies between 1 and 3 much lower. In the case of SMS pull percent when databases with approx- campaigns, the surge has been imate targeting are used. When well around 20 percent compared to 2011 segmented databases are used, it can while in the case of SMS push camreach 10 percent or even 25 percent paigns the growth has been somewhen the company uses its own well what lower. As smartphone penetration and segmented database and the campaign is well implemented. In the the use of mobile internet increases in case of SMS pull campaigns (ed. note: Romania, iLeo representatives predict campaigns involving subscribing to a there will be a decline of communicaservice by SMS), the response rate is tion campaigns via SMS as has been on average 5 percent, which is consid- the case in more developed markets ered sufficiently good to continue such as those in Western Europe.
LINKS 7 Sketching the budget There has clearly been a growth in budgets allocated to mobile marketing compared to previous years, especially with new techniques such as mobile sites, mobile web, campaigns based on QR codes and applications. “In the case of ‘classical’ campaigns via SMS, we have noticed a growth in budgets of at least 10 percent,” says Apostol. “This is due mainly to the multiplication of brands that are using SMS pull. SMS push campaigns have surged especially because of the customer relationship management (CRM) activities, into which they have started to be integrated more and more often. More potential for growth came from the area of political campaigns, where SMS remains an efficient communication tool,” say iLeo representatives. Companies in Romania can invest budgets that start from hundreds of EUR up to tens of thousands in a mobile marketing campaign. The upward trend is not only due to the new brands that have developed campaigns this year, but also to the surge in interest in applications and mobi sites/landing pages, they point out. As an example, Dimulescu says that a local campaign such as that of a restaurant that has local offers can start from a budget between EUR 500
SMS CAMPAIGN YIELDS Target group: 10,000 people Conversion rate (most pessimistic scenario): 1 percent Average profit per product: EUR 5 Cost per SMS: EUR 0.04 Cost of the campaign: EUR 400 Profit of the campaign: EUR 500 Profit per initiative: EUR 100
* Source: Netopia
and EUR 1,000. Meanwhile for nationwide campaigns the budget can go to between EUR 20,000 and EUR 30,000. “What I can tell you is that there were campaigns in which the final return on investment was approximately 3,000 percent,” says Alex Putineanu, managing director at Mobile Works. However, despite its popularity as a means of promotion, “one cannot help noticing that the SMS is slowly losing ground, leaving room for growth on other segments, which is also reflected in the sums that clients are willing to invest,” Putineanu concludes. otilia.haraga@business-review.ro
www.business-review.ro Business Review | September 3 - 9, 2012
8 FOCUS
Good crop, bad crop: the hot weather has significantly affected the output of local farms
Drought sees food prices overheat Wheat prices have surged by about 30 percent this August y-o-y, while other crops have also posted gains, threatening to eat into Romanian food processors’ profits. And the effects of the drought are not just being felt by farmers: food prices went up this July by 0.1 percent and consumers could be looking ahead at further increases given the price evolution of basic commodities and the exchange rate. ∫ SIMONA BAZAVAN Recent weeks have seen alarming reports of crop losses after drought ravaged some 40 percent of Romania’s farmland, according to the Ministry of Agriculture. While official data on this year’s harvest is not yet out, farmers have been complaining of double-digit losses for most crops. This year’s corn production could drop by about 20 percent from the 11.6 million ton record level reported in 2011 while the wheat output will be at least 15 percent below the 7.1 million tons harvested a year ago. The drought has also burned up some 45 percent of this year’s sunflower crops, farmers say. Other countries, too, have been affected by this summer’s crushing heatwave, although Romania’s general lack
of proper irrigation has made things worse. Local and international prices for the major cereals, wheat and corn, have surged as a result. The Food and Agriculture Organization of the United Nations (FAO) announced that its index for cereals was up 17 percent this July against the previous month. Severe drought in the USA pushed up corn prices by almost 23 percent in July while international wheat quotations also surged 19 percent amid worse production prospects in the Russian Federation and expectations that demand for wheat, such as feed, will go up because of scarce corn supplies, according to the organization. Overall, the FAO food index, which measures the monthly change in the international prices of a basket of food commodities, climbed 6 percent in July after three months of declines.
In Romania, poor harvests combined with the surge in international cereal prices, and the depreciation of the exchange rate is putting pressure on producers to hike prices. The effects of this can already be seen. The most recent data from the National Institute for Statistics (INS) shows food prices advanced by 0.14 percent in July against June. The same month a year ago, prices dropped 2 percent. But this 0.1 percent hike may be just the beginning, as it reflects the effects of the drought and exchange rate only to a degree, representatives of Bancpost told BR. “While consumer prices reported a significant increase in July, we consider that the effect of the above mentioned factors has not been fully reflected. The evolution of the monthly inflation rate in July was mostly generated by exter-
nal factors, especially the price of electricity. Therefore we expect prices to go up over the next months given the drought and the evolution of the oil price on external markets, which will be amplified by the leu’s depreciation against the euro,” bank representatives told BR. As food prices represent one third of the consumer price index, inflation, too, is likely to rise.“We anticipate the inflation rate evolution over the next period will be strongly influenced by the EUR/RON exchange rate and the evolution of food prices both at local and at an international level. (…) Bancpost’s forecast regarding the annual inflation for end-2012 is 3.4 percent. This is within the limits announced by the central bank, which set a 3 percent annual inflation target, plus/minus one percentage point,” said the representatives.
www.business-review.ro Business Review | September 3 - 9, 2012
Heat triggers chain reaction Higher costs of cereals and also utilities exert pressure on the food industry to hike prices. From vegetables and fruit to bread, dairy and meat, the coming months are likely to see shelf prices increase, producer associations warn. The Ministry of Agriculture admits that due to the drought, there have been and will continue to be significant price increases for basic commodities such as wheat, corn and sunflowers, but these hikes shouldn’t necessarily mean higher shelf prices, or at least not huge hikes. For example, a 30 percent increase in the cost of cereals generally means a price rise of about 3 to 5 percent for processed products, agriculture minister Daniel Constantin believes. “The drought has affected the price of raw materials. But it remains to be seen to what extent this will affect shelf prices. I can’t make estimations. We are a functional market economy and the market determines the price,” added Constantin. Companies from the food-processing industry are indeed caught between a rock and hard place. On one hand there is the pressure to hike prices due to the higher costs of raw materials and utilities, while on the other hand purchasing power remains low. “The industry has been taken aback by the evolution on the raw materials market – cereals and animal feed,” Grig-
FOCUS 9 ore Horoi, president of Agricola Bacau, one of the largest local poultry producers, told BR. Although the upward trend in the cost of the raw materials used by the industry began at global level back in 2009, this year prices are reaching new records. In 2009 meat producers paid about RON 660 (approximately EUR 156) for a ton of cereals but this year prices have exceeded RON 1,100 (approximately EUR 250). In just one year soybean feed has almost doubled its acquisition price, going from USD 413/ton in 2011 to USD 740/ton presently, said Agricola Bacau’s president. All in all, while over the past three years the price of cereals has increased by a cumulated 79 percent, the shelf price for poultry has gone up only by 6 percent. Everything hints at future price increases but producers are being cautious when making predictions. “With regard to future price evolutions I would like to express my confidence in the rules of the market economy and the balance it naturally generates. But my statement or that of any other producer, or the alarming signals coming from the media, will not decisively change the reality we are living,” concluded Horoi.
Waiting for a raindrop in the drought VAT on agricultural products could be reduced from the present 24 percent
Average prices* for wheat and corn on the domestic market 2012 Wheat Corn
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
176 177
180 170
188 175
185 173
185 181
188 175
182 178
217 220
*Prices are expressed in EUR/ton Source: Ministry of Agriculture and Rural Development level to 9 percent from 2013 in an attempt to help farmers and reduce tax evasion, the government previously announced. The measure was welcomed by local farmers, the food industry and retailers, who said it would also help reduce prices. Representatives of the Romanian Association of Large Retailers (AMRCR) said its members would take steps to make sure shelf prices go down by as much as VAT. Theoretically speaking, cutting VAT should also lead to a reduction in shelf prices sooner or later, Ramona Jurubita, tax partner at KPMG, told BR. “However, this depends on how elastic demand is for a specific product. The less elastic the demand, meaning that no matter the price consumers will continue to buy the product in principle, the more producers will tend to maintain prices at the same levels and thus increase profit margins,” she explained.
In order for this measure to work and help reduce tax evasion, it is very important for the authorities to specify very clearly to which products the cut will apply, otherwise it could have exactly the opposite effect, stressed Jurubita. Reducing VAT on a limited number of products could prove difficult and would affect government revenues, said Bancpost representatives. “If this measure can be and is implemented, we forecast that its impact will be in the best case scenario neutral, given food price increases on international markets,” they said. Representatives of the International Monetary Fund reacted by saying that the institution doesn’t recommend differentiated VAT levels as this leads to tax evasion, is not beneficial to consumers and can endanger the budget deficit target. simona.bazavan@business-review.ro
www.business-review.ro Business Review | September 3 - 9, 2012
10 POLITICS
Romania’s summer of discontent leaves legacy of frosty relations Romania’s President Traian Basescu has returned to office after 52 days during which he was suspended by Parliament, after having narrowly survived an impeachment referendum. He is now facing the challenge of collaborating with Victor Ponta’s coalition government, in the midst of a tough economic period when relations between the two men seem frostier than ever.
Survivor: President Traian Basescu has seen off two impeachment attempts
∫ OVIDIU POSIRCA The political crisis that has unfolded over the last two months attracted international news coverage and drew reactions from the European commissioner Jose Manuel Barroso and other EU members, while the US sent a Department of State representative to gain a clear picture of the political bickering in Romania. Both EU members and the US urged the Romanian government to protect the rule of law and respect the decision of the Constitutional Court (CCR). The nine constitutional judges eventually defused the crisis and ruled the July 29 referendum invalid as the 51 percent turnout threshold had not been reached. Only 46.2 percent of the electorate voted. Of the 8.45 million Romanians who flocked to polling stations, 87.5 percent voted to impeach the president.
Playing democracy Romania’s Parliament voted on July 6 to suspend the president for breaching the constitution. The left-wing USL coalition alleged the head of state had assumed the powers of the PM in 2010 when he announced an austerity package that saw public sector wages slashed by 25 percent. He was also accused of meddling in the judiciary. The arguments persuaded 256 MPs to vote in favor of suspension, while 111 MPs opposed it. “My opinion is that the main
objective you have is to control the justice system. In addition, you refuse to enforce the results of the 2009 referendum through which the constitution should have been amended to have 300 MPs and a single house in Parliament,” replied the president in Parliament. President Basescu saw off the impeachment attempt for a second time. In 2007 322 MPs suspended him following the same accusations. However, he was returned to office with a 74 percent majority. But the bleak economic situation of today is very different from the financial climate of five years ago and the USL thought a new impeachment referendum may succeed. The socialliberal alliance (USL) was formed last year and comprises the left-wing PSD, liberal PNL and center-right PC. The impeachment saga became a political fiasco that may have dented foreign investors’ perceptions of Romania. Meanwhile, European bureaucrats are now poring over the institutional entrails of the second poorest economy in the EU. The government’s actions prior to the suspension lost it the trust of European leaders, who expressed their dissatisfaction with Ponta’s leadership. “Events in Romania have shaken our trust. Challenging judicial decisions, undermining the constitutional court, overturning established procedures and removing key checks and balances have called into question the government’s commitment to respect the rule of law,”
Under fire: PM Victor Ponta has come in for criticism from European leaders said Barroso after the latest report on Romania’s progress, the Cooperation and Verification Mechanism (CVM), was published. This is an EU tool used to assess the progress of the judiciary and anti-corruption efforts in Romania and Bulgaria. The report said that Romania had made progress since 2007, but the benchmarks of the CVM had not been fulfilled. Some of the government’s initiatives only worsened the comments in the report, especially an ordinance that aimed to limit the powers of the CCR. PM Ponta went to Brussels to convince Europe’s top brass that he was respecting democratic practices and returned with a working paper from commissioner Barroso. The PM had to answer to 11 questions on the political situation in Romania. While the ruling coalition was doing the explaining, the suspended president kicked off his campaign from a private villa in central Bucharest. Journalists would gather outside the villa and wait for the president, who would make statements almost every day, outside the building, in front of a wall that bore the emblem of the constitutional law. The former sea captain always wore a blue shirt, during both press conferences and public rallies. Throughout the campaign, the president said that what was at stake wasn’t the presidential seat, but Romania’s European future. He argued that the USL’s actions would only lead to the isolation
of Romania. Both sides used colorful language during their campaigns, which seldom touched on themes such as the standard of living of ordinary citizens or the state of the economy. Probably due to predictions of a low turnout, the right wing PD-L, which gave Basescu the presidency in 2004, decided to boycott the referendum in the hope that fewer than half of eligible voters would choose to participate, thereby rendering it invalid. The suspended president quickly took this line, despite initially saying he wanted all his supporters to vote. Basescu said he didn’t want to be called the “green table” president – an analogy referring to the forfeiting of football matches – and did not vote in the referendum. He now returns to office to serve out the remaining two years of his second term.
Voting in vain The tight result saved the president, but galvanized the USL for the upcoming elections scheduled for December. However, the country was then dragged into a new scandal. The Constitutional Court debated the referendum results on August 2 but delayed its decision because it needed up-to-date numbers of eligible voters from the government. Eventually, the court got the updated figures and decided on August 21 to annul the referendum because an insufficient number of voters had turned out. The number of eligible voters was cut only by 34,654,
www.business-review.ro Business Review | September 3 - 9, 2012 most of whom were deceased. Hundreds of protesters gathered in Bucharest in the following days to decry the CCR decision, calling for the resignation of the reinstated president. Prosecutors travelled to rural constituencies where voter turnout exceeded 100 percent to ask people whether they had voted. Mayors in these localities said that tourists and other people passing through these areas voted as well. This came after the opposition party PD-L filed criminal complaints regarding multiple voting and electoral tourism. Following the outcome of the referendum, the Ponta government made a quick reshuffle, replacing six ministers, some of whom had been directly involved in organizing the ballot. “Traian Basescu is the president elected with 5 million votes and dismissed with 7 million votes. The voice of the people is very clear,” said Ponta. “The CCR decision will be respected and implemented, but we are obliged to notice the effects of this decision – an unfair decision, against democratic laws, of the absolute majority of Romanians who voted for a change in the political regime.” Crin Antonescu, who had been interim president, said the PNL would respect and implement the CCR’s decision, although it considered it unfair. A spokesperson for the German government said that the country would watch closely, along with the European institutions, the political developments in Romania. “We encourage Romania’s politicians to respect this decision and to work together to ensure political stability,” said a spokesperson for the UK Foreign Office. While the country was awaiting the CCR decision, the EU commissioner urged the PM in a letter to respond “without undue delay” to the CCR requests for the electoral lists and to investigate allegations of pressure and intimidation of constitutional judges. “I am deeply worried about the intensifications of the divisions between various actors in Romania and the tone of political discourse across the party spectrum,” wrote Barroso. The US was also concerned by postreferendum developments, and on August 12 the assistant secretary for European and Eurasian affairs, Philip Gordon, came to Bucharest to speak with the main political officials. He flew from Turkey where he had joined Secretary Hillary Clinton for meetings with senior Turkish government officials and activists from war-torn Syria. “I also want to make clear as I made clear to the leaders throughout the course of discussions today, we’re not taking sides and we’re not here to support one party or one leader over any other,” said Gordon. We’re here to support shared principles and democratic institutions and respect for democratic institutions.” The assistant secretary met with suspended president Basescu first, after which he saw interim president Crin Antonescu and concluded with a visit to the government.
POLITICS 11 Last year Romania and the US signed a joint declaration on the strategic partnership in various areas including the economy and education. Political stability in Romania is of the utmost importance for the Americans, who will next year start to build a missile defense shield some 230 km east of Bucharest in Deveselu.
Romanian currency senses crisis The RON was the main indicator of the political tensions that erupted in Bucharest, reaching new lows during the campaign, and tumbled to a record low of EUR/RON 4.6481 on August 3, when the CCR should have ruled on the referendum. The pressure on the Romanian currency eased last week following the long-awaited CCR decision, and the exchange rate appreciated to an eight-week high of 4.4571. The country has a EUR 5 billion stand-by agreement with the IMF, World Bank and the European Commission, which grants Romania credibility on international markets, according to analysts. The governor of the National Bank of Romania, Mugur Isarescu, warned that Romania depends on the international markets to finance its deficit and to further pay salaries and pensions, adding that Romania can be punished by these markets. The governor said this had been proved by the strong depreciation of the domestic currency in early August. “Politicians have to talk and find solutions to the current situation. They need to sit at the table and find solutions, not to interpret that the exchange rate is moving of because of this or that,” said the governor, quoted by Mediafax newswire. Another call for the politicians came from the Romanian-German Chamber of Commerce and Industry, which urged them to “focus their attention of economic issues so that the Romanian economy recovers”. The political crisis is the one main factor that has contributed to the depreciation of the RON, as other currencies in the CEE region have gone the opposite way, according to a policy brief by the Romanian Center for European Policies (CRPE). “Between the end of May and the beginning of August, the Romanian currency depreciated by around 2 percent in spite of massive interventions from the Romanian Central Bank, while the Polish Zlot and the Hungarian Forint both appreciated by around 8 percent against the euro in the same period,” noted Oana Maria Georgescu, the brief author. Slightly better news came this month from the National Statistics Institute (INS), which announced 0.5 percent GDP growth for the second quarter, from a 0.1 percent decrease in the first quarter. This was the fourth largest gain in the EU. Meanwhile, the EU 27 and Euro zone economies shrank by 0.2 percent, signaling the ongoing economic malaise in Europe. ovidiu.posirca@business-review.ro
www.business-review.ro Business Review | September 3 - 9, 2012
12 CITY TRAVEL
Century-old Peles Castle prepares royal display of Klimt artwork Tucked away in the forests surrounding the Romanian mountain town of Sinaia, Peles Castle is a one-of-a-kind piece of local history. BR takes a look at what this tourist attraction has to offer visitors and the events taking place there this fall. but continue to be administered by the state. Throughout its history, the castle has hosted some major figures, from royalty and politicians to artists. Romanian composer George Enescu, French actress Sarah Bernhardt, French violinist Jacques Thibaud and Romanian writer Vasile Alecsandri visited often as guests of Queen Elizabeth of Romania, also known by the pen name of Carmen Sylva for her writing. In later years, many foreign notables such as US presidents Richard Nixon and Gerald Ford, Libya’s Colonel Muammar al-Gaddafi and Palestinian leader Yasser Arafat were welcomed to the castle. Fit for a king: Peles Castle initially served as a royal residence for King Carol I
OANA VASILIU “The Royal Castle stands amongst other monuments, in an extremely pretty landscape with gardens built on terraces, all at the edge of dense forests. The castle itself is very impressive owing to the riches it has accumulated: old and new canvases, antique furniture, weapons, all sort of curios, and with everything arranged with good taste. We took a long hike in the mountains; afterwards we picnicked on the green grass, surrounded by Gypsy music. We took many pictures, and the atmosphere was extremely pleasant.” So wrote Kaiser Franz Joseph I of Austria in a letter on 2 October 1896, describing a visit to the property. After more than one hundred years, little seems to have changed. People from all around the world come to see the beautiful Neo-Renaissance castle in the Carpathian Mountains, near Sinaia, in Prahova County. Most of them share the same opinion as the Austro-Hungarian emperor, which many voice in online reviews on the most popular travel websites. Peles Castle was built at the initiative of Romania’s King Carol I, to serve as a summer residence. The most important event hosted by Peles Castle up until the abdication of King Michael I, in December 1947, was the celebration of the
semi-centenary of the castle in 1933, according to museum officials. From January to March 1948, the castle was closed at the order of the communist authorities and its historical assets were inventoried. Most of its paintings, furniture, textiles, decorative artworks and books were transferred to the National Art Museum in Bucharest. That same year, in May, other assets were handed over to various cultural institutions around Romania, in Bucharest, Brasov and Sibiu. Since 1953, the castle has been a National Museum, open to the public, while the other estates making up the Peles domain became boarding houses for writers, artists and musicians approved by the communist regime. These are Pelisor Castle, the private residence of the second royal couple, Ferdinand I and Marie, and Foisor Castle, the former hunting lodge belonging to the first King of Romania and the residence of Kings Carol II and Michael I. Since 1990 and1993 respectively, Peles and Pelisor castles have been reopened to visitors. In 2007, after five years of negotiations between the Romanian state and the Royal Family, an agreement was reached and the two castles, as well as the entire Peles area, including the former royal outbuildings, officially became King Michael I’s property,
A lesson in architecture Peles’ architectural style is a romantically inspired mixture of NeoRenaissance and Gothic Revival similar to Schloss Neuschwanstein in Bavaria, after Carol I rejected three previous architectural proposals. A Saxon influence can be observed in the interior courtyard facades, which have allegorical hand-painted murals and ornaments in the German style Fachwerk, similar to that seen in northern European alpine architecture. The interior decoration is mostly Baroque influenced, with heavy, carved wood and exquisite fabrics. Peles Castle has a 3,200-sqm (34,000 sq ft) floor plan with over 170 rooms, many with dedicated themes inspired by world cultures. Rooms vary by use (offices, libraries, armories, art galleries) and by style (Florentine, Turkish, Moorish, French, Imperial). All the rooms are lavishly furnished and decorated to the slightest detail.
the castle were completed between 1883 and 1886 at Kunstler-Compagnie. Kunstler-Compagnie was a painting studio active between 1879 and 1892. It produced decorative works for private and public buildings inside and outside the Austro-Hungarian Empire. Peles Castle is the most important host of Gustav Klimt’s works in Romania. These can be grouped into three categories: the King’s Ancestors Gallery, including ancestors from the Hohenzollern House; copies of well known works; and original works which are on display in the castle’s Theater Hall or on the ceiling of the Honor Stairs.
Sinaia sightseeing Sinaia Monastery, the Bucegi Mountains cathedral The story of this monastery starts in the 17th century, when Prince Mihai Cantacuzino, impressed by the beauty of an Orthodox monastery in the holy lands, decided to build a monastery named after Mount Sinai. One of the aims of its location was to offer protection to those who traveled the commercial route on the Prahova River Valley. Later, in the 19th century, because of the high number of monks, a new monastery was built, called Curtea Noua (the New Court), which became the first electrically-lit place of worship in Romania.
George Enescu Memorial House
George Enescu, who made contemporary Romanian music famous worldwide with his amazing Romanian Rhapsodies, has a special connection to Sinaia. The artist enjoyed the support of Queen ElizaCelebrating art: The beth, who, recognizing the talent Gustav Klimt and Kunstlerkompanie expo of the young musician, put a room The Gustav Klimt and Kunstlerkom- at his disposal at Peles Castle, where panie expo will open at Peles Castle he could study. The artist was so on September 15. The exhibition, impressed by the beauty of Sinaia which includes works by the young that after a tour of the United States Viennese artists Gustav Klimt, Ernst he decided to build a house here, Klimt and Franz Matsch, done at which he designed himself. Over the following 20 years, unthe request of King Carol I, will be open to the public until December til 1946 when Enescu left Romania 15. The works currently hosted at for good, the musician constantly
www.business-review.ro Business Review | September 3 - 9, 2012
CITY 13 EDUCATION
Terms and conditions: offspring of the affluent go back to private school OANA VASILIU
The Gustav Klimt and Kunstlerkompanie expo opens on September 15
Photo: Courtesy of Peles Museum
returned to Sinaia, to spend a least one month a year in the town, a time dedicated to composition, between his tours of Europe and North America. Enescu’s “Glade” Villa in Sinaia ensured him the calm and peace required to create. In 1947, the great composer donated the mansion to the Romanian state, so it could be used as a place for artists to relax and work, while he was living in Paris. oana.vasiliu@business-review.ro
How to get to Sinaia You can reach Sinaia by car from Bucharest on the DN1 E60 road (148 km) or Brasov, by the same road (37 km). From Bucharest North train station (Gara de Nord), over 17 services stop at Sinaia, on both national and international routes, from 06.00 to 22.00 every day. For details, check www.cfrcalatori.ro.
Ticket prices Peles Castle: General exhibition (ground floor): adults RON 20, seniors RON 10, students RON 5. Ground floor and first floor: adults RON 50, seniors RON 25, students RON 12. Ground floor, first floor and second floor: adults RON 70, seniors RON 37, students RON 17.
Pelisor Castle: General exhibition: adults RON 20, seniors RON 10, students RON 5. George Enescu Memorial House: General exhibition: adults RON 6, seniors RON 2, students RON 1.5.
Theater Hall was decorated by Gustav Klimt
Visiting hours Gustav Klimt Expo September 15 – December 15, 2012 Wednesday: 11.00-17.00 Thursday-Sunday: 9.15-17.00
Peles Castle Summer hours: May 15 – September 16 Wednesday: 11.00-17.00 Thursday to Sunday: 9.00-17.00 Winter hours: September 15 – May 14
(Peles Castle and Pelisor Castle) Wednesday: 11.00-17.00 Thursday to Sunday: 9.00-17.00
Pelisor Castle Summer hours: May 15 – September 17 Thursday-Sunday: 11.00-19.00
George Enescu Memorial House Tuesday-Sunday: 10.00-17.00
No more than 15 pupils in a class, teachers focused on a child’s needs, extracurricular activities, foreign language classes and lavish facilities are among the benefits of a private education. But the costs can be prohibitive for many Romanians: school fees range from EUR 3,000 to EUR 19,000, depending on the student’s age, extracurricular classes, the time spent in school and the school’s reputation. The country’s most expensive private school is the American International School of Bucharest (AISB), which has been active in Romania for more than 50 years. Annual fees are as follows: Early Childhood 3-4: EUR 13,820; Kindergarten-grade 8: EUR 18,150; grades 6-8: EUR 18,300; grades 9-10: EUR 19,550 and grades 9-12: EUR 19,575. There is also a one-off application fee of EUR 200 and a one-off registration fee of EUR 800, both nonrefundable. The school has spacious classrooms, a library/media center, a sports center/gymnasium for the secondary school and a gymnasium for the elementary school, music and art rooms, science and computer labs, a performing arts theater, a cafeteria and many outdoor sports facilities including tennis, basketball and soccer. The AISB offers the International Baccalaureate (IB) Diploma, IB Middle Years Program (MYP) in grades 6-10, and the IB Primary Years Program (PYP) in grades K-5. Specialists in art, drama, cinematography, physical education, music (band/choir), computers, Spanish and French are on the teaching staff. Although it does not have a long history in preparing students in Romania, the British School of Bucharest (BSB) is another option for parents who are able to pay fees starting from EUR 8,500 (crèche & crib) or EUR 16,850 (pre-school and above) for their children’s education. The institution offers an extensive extracurricular calendar, including day and residential trips, after school clubs, a strong work experience program, a Certificate in Advanced Studies program, as well as school and interschool events designed to develop students at all levels. One of the extracurricular activities at BSB is Native Language Classes. They encourage pupils to continue using their native language and to learn about the culture of their countries of origin during after school lessons. Currently, BSB offers
The American School of Bucharest boasts extensive facilities
Romanian, French, German and Spanish for native speakers in after school clubs throughout the school year. Other languages such as Greek, Turkish and Italian are offered occasionally by volunteering parents who have teaching experience in the respective language. The International School of Bucharest (ISB) is a third private educational institution for children aged 3 to 19 in Bucharest. The ISB provides a British style of education, as follows: children in early years, primary and secondary school (ages 2 and a half to 14) follow the National Curriculum of England and Wales, which is adapted to meet the needs of an international student body. Students in years 10 and 11 follow the Cambridge IGCSE program. Years 12 and 13 are the final two years of the program where students are prepared for International A-levels. For the academic year 2012-2013, fees start from EUR 5,450 for nursery, EUR 6,000 for years 1-6, EUR 8,000 for years 7-9 and EUR 8,950 for years 10-13, with a submission fee of EUR 300. The extra activities at the ISB are divided into academic clubs, music and creative arts, sports clubs and mixed activities, where children can develop leadership abilities, interpersonal relationships, a sense of responsibility, cooperation and generosity, personal discipline and selfless cooperation for the greater good of the community. For those who want to study in a foreign language other than English, Bucharest offers several alternatives. Anna de Noailles High School, for example, teaches in French. Fees start from EUR 4,010 for kindergarten and elementary school places for Romanian or French children, with an extra EUR 700 for pupils of other nationalities. Secondary school fees are EUR 5,140/5,840, while high school fees in French for one year are EUR 5,340/6,210. oana.vasiliu@business-review.ro
www.business-review.ro Business Review | September 3 - 9, 2012
14 CITY
CULTURAL EVENTS
WHO’S NEWS
THEATER
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Undercloud Independent Theatre Festival September 3-13, from 19.00 Peasant’s Club, The Romanian Peasant Museum Athenaeum
The fifth Undercloud Theatre Festival is staging 21 representations of the best productions from Bucharest’s independent theatre scene. Performances from Act Theatre, Unteatru, Chatarsis Association, Culture’s Studio, Ture T, Dream’s Car, Godot Café Theatre, La Masa Theatre, Theatre is not a building and D’AYA Theatre will run for ten days.
MUSIC Baroque Nocturnal Festival September 3-8, from 20.30 The National Library Esplanade The National Library will host this classical music show. Pieces by Bach, Vivaldi, Scarlatti and Händel will be heard from the banks of the Dambovita River, on the library’s esplanade. Access to all events is free of charge.
companied by the music of the Karpaten Show, a well-known Bavarian fanfare.
EDUCATION NAPOMUN September 3-9 Cluj-Napoca The Napoca Forum Youth Association organizes the third edition of NAPOMUN – the Cluj-Napoca International Model United Nations. The conference, one of the most diverse and popular of its kind in Europe, will bring together students and young leaders from more than 20 countries worldwide, its primary aim being that of strengthening the United Nations values amongst the younger generations. This year’s participants will take up the role of diplomats and will act according to the rules of procedure of the specific United Nations and European Union body they will be part of. NAPOMUN is also part of a larger campaign called “THIS is Romania!” that seeks to promote authentic Romanian values amongst foreigners.
FILM Premiere Lawless Opens September 7
Violeta Luca has been appointed CEO of Flanco, replacing Adrian Olteanu. She was promoted to this position shortly after being named deputy CEO and will now lead a team of 800 employees. Luca joined Flanco in 2011 as marketing director. Previously, she worked for Whirlpool Romania as commercial manager from June 2007. She graduated from the Academy of Economic Studies in Bucharest and has 10 years of experience in the electro-IT domain.
Calin Matei deputy general director and director of the technical division of life and bancassurance at Groupama Asigurari, will have an extended role within the company, the insurer has announced. He will also head the technical division of nonlife and reassurance. Matei graduated from the Academy of Economic Studies in Bucharest and pursued actuarial studies for two years at Corvinus University.
Georgiana Miron
OUTDOOR German Beer Fest September 6-9 Tineretului Park Weismainer, Franziskaner, Leikeim, Monchshof, Kapuziner, Kulmbacher, Eku and Patrizier Brau are the hosts of the second edition of the German Beer Fest. For food lovers, German goodies such as turinger, bratwurst, pork with cabbage, steak, traditional German bread, retzel pretzels and Bavarian sweets will be on offer, ac-
The story of the infamous Bondurant Brothers, bootlegging siblings who made a bid for the American Dream in Prohibition-era Virginia. In this gangster film, inspired by the truelife tales of author Matt Bondurant's family in his novel The Wettest County in the World, the loyalty of three brothers is put to the test against the backdrop of the nation's most notorious crime wave.
ISSN No. 1453 - 729X
FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi ART DIRECTOR Alexandru Oriean PHOTO EDITOR: Mihai Constantineanu PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu
director of communication and public relations at Groupama Asigurari, will have an extended role within the company, the insurer has announced. She will also head the marketing and communication division. Miron specialized in communication at the Sociology Faculty, where she later obtained a master’s degree in communication
PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH Catalina Costiuc SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
and mass media.
Liliana Solomon 48, was promoted to chief financial officer (CFO) of British mobile telephony group Vodafone for Europe in July, and will be in charge of the company’s activity in eight countries. She was CEO of Vodafone Romania for five years before being promoted to manager of operations for Europe at the end of 2010. Solomon was replaced by Inaki Berroeta, who took the helm of the local branch after several years spent as CEO of Vodafone Malta.
George Makowski has ended his term at Romtelecom as executive commercial director for the business segment. His replacement has not yet been announced. Makowski came to Romtelecom from Cesky Telecom (now Telefonica O2), where he had been chief sales officer since 2004. Before that he worked in Paris, for Groupe Bull (1986-1993), as director of the retail and distribution management group.
Razvan Valceanu has stepped down from the helm of BitDefender and will join the local subsidiary of Swedish lock manufacturer Assa Abloy as business unit manager and brand manager. He joined the Romanian security solutions company Bitdefender in 2004 as partner account manager for Romania and was later promoted to channel manager for Romania and Eastern Europe. In 2007 he became managing director.
PUBLISHER Bloc Notes Media ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro