Business Arena nr 101 - CEC Bank powers through

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No. 101

29lei

2021

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BOGDAN NEACŞU General Manager and President of CEC Bank's Executive Board "As a state-owned organization, CEC Bank has a responsibility to society to support financial literacy and increase financial inclusion." pages 08 - 11

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With its strong tradition in creating new opportunities for the business community to express fresh views and ideas, and in recognizing business success and outstanding achievements, Business Arena is pleased to announce the upcoming Awards for Excellence, the latest highlight in the business events calendar. Guests gather to celebrate excellence in business, sports, culture, and community, enjoying the company of friends and industry colleagues.

Innovation, resourcefulness, perseverance and a culture of responsible risktaking have helped many overcome major challenges. Thus, this edition of our awards gala brings recognition to individuals and organizations that recorded outstanding results and achievements during a challenging year 2020.

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EDITORIAL

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ECONOMIC GROWTH PROSPECTS OUTWEIGH POLITICAL RISK by While the healthcare system is struggling to cope with the high number of COVID-19 cases, Romania's ruling coalition is in turmoil, following the sacking of Health Minister Vlad Voiculescu. Of course, the business community can only hope the political instability is short-lived, and doesn't put additional pressure on the economy.

For now, there are positive signs, with the IMF revising up its economic growth prediction for Romania to 6%, compared to a previous forecast of 4.6% in October.

Moreover, the IMF sees Romania's economy growing by another 4.8% in 2022, according to the latest edition of its World Economic Outlook (WEO) report.

In fact, most analysts agree that Romania business opportunities remain exciting. Commenting on the recent PwC M&A Outlook report, Dinu Bumbăcea, Partner and Advisory, PwC Romania, said: “The signals from the economy are positive, and the return to activity seen at the end of 2020 is expected to continue in 2021, as there is money in the market. Both strategic and financial investors have substantial capital resources, financing is cheap due to still very low interest rates and the time is right for companies that want to expand, consolidate or diversify and transform their business by acquiring resources and new technologies.”

More good news came from Standard & Poor's, as the rating agency revised the outlook on Romania to stable from negative "due to decreasing fiscal risks," while maintaining rating at BBB-/A-3. "We expect

Cristian Cojanu

the government's fiscal efforts will be supported by an economic rally. Romania's economy demonstrated resilience in 2020, when it contracted by a relatively modest 3.9%," an S&P statement read. It noted that the country's post-pandemic economic recovery would depend on EU-funding.

"Romania is a key beneficiary of the grants from the EU's Recovery and Resilience Facility (RRF). The country has a comparatively weak record of absorbing EU funds but we consider even an absorption rate of around 50%, in line with the 2014-2020 program period, would offer material benefits."

Despite the recent political turbulence, the S&P has positive expectations: "We expect the coalition to remain united in its approach toward fiscal sustainability and to front-load reform ambitions to 2021-2022, before politics gradually adapts in the runup to the 2024 super election year."

S&P also said it expected the government deficit to reach 7% of GDP this year.

"We also forecast that the fiscal deficit will gradually reduce to 3% of GDP in 2024 supported by the government's mediumterm consolidation ambitions and the recovering economy. We believe this will halt the erosion of Romania's government balance sheet and we see its net general government debt to GDP stabilizing at around 50% of GDP by 2023."

Find more expert opinions and read about new business trends in this issue of Business Arena, as we continue to keep an eye on all the aspects affecting the business community.

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OPINION

WHEN THE CURE WORKS BUT THE DOCTOR IS STILL FIRED

THE IMPORTANCE OF CENTRAL BANK INDEPENDENCE Former Turkish Central Bank governor Naci Ağbal did what any responsible central bank governor would have done in order to curb inflation and stop the depreciation of the national currency, would have done. He did his job and raised the interest rates.

He thus avoided the deepening of the crisis his country was facing when he took office as governor. However, he was fired. Two days after the last monetary policy interest rate increase, the country's president dismissed his third governor in two years.

BY CRISTIAN POPA A month ago, I wrote about the costs of the dangerous games in which central bankers can become involved, and about who stands to pay for the mistakes, giving as example the decisions taken by the Central Bank of Turkey, thinking it could have both low interest rates and low inflation. Cutting interest rates too much or too abruptly can do more harm than good, it can be a poisoned pill. When you force the reduction of interest rates, confidence in the monetary policy decreases, sometimes abruptly. At the time, I wrote about Turkey's currency depreciation that peaked at 43% during last year, which was the cost of those risky games, based on good intentions, of course. I also wrote about Naci Ağbal, the technocrat savior governor, appointed with a mandate to rectify the situation. Analysts welcomed Ağbal, expecting him to restore the credibility of the Central Bank of Turkey and normalize its monetary policy, i.e. to raise interest rates, to reverse rising inflation and stop the depreciation of the Turkish lira. This is exactly what he did. He raised the interest rates by 6.75 percent at the end of last year, increasing the monetary policy interest rates from 10.25% to 17%.

He thus allowed the central bank to fight inflationary pressures, he regained the credibility of the financial markets and, at the same time, stabilized the exchange rate: the lira saw a depreciation of (only) 20% against the US dollar at the end of last year. Even so, the lira had a bad year: among the emerging countries' currencies, only the Argentine peso and the Brazilian real saw a deeper depreciation.

AN UNPLEASANT, BUT DEFINITELY NECESSARY DECISION But that was not enough: with an inflation above 15%, which was expected to exceed 16.5% in April, and pressures on international markets generated by rising interest rates on US government bonds, analysts expected another increase of 100 basis points (or 1%). In a context further fueled by rising international food and commodity (including oil) prices and strong domestic demand, fueled by effervescent lending, the Central Bank of Turkey showed its strong commitment to fighting inflation, and its determination to stabilizing the foreign exchange market. Thus, it announced a 2% increase in the monetary policy rate, from 17% to 19%. It also said it was prepared to further increase the rate if necessary, and pledged to maintain a positive real interest rate until its 5% inflation target was reached.

The measure was considered too harsh by the country's president, who calls himself "the enemy of high interest rates." He quickly fired Ağbal.

WHY FIGHT INFLATION? Inflation is a tax, a devious one, because when it is low you can't see it, and when it gets high ..... it has already done a lot of harm, it has already eroded a lot of savings. All those who trust the monetary and fiscal authority, and, consequently, the national currency, pay this tax. Individuals, companies as well as foreign investors, who keep their savings and investments in the national currency, lose a part, smaller or larger, of their wealth. People on low and fixed incomes, the vulnerable individuals, lose too, because inflation

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erodes their purchasing power even more. Many people's savings evaporate due to inflation. Those who have debts in foreign currency and incomes in national currency also stand to lose, because they have to return a more expensive currency, their debt increases, but their income does not. Companies with debts in foreign currency can go bankrupt relatively easy, being unable to return the more expensive currency borrowed. But consumers are also on the losing side, because goods will generally be more expensive - with the same salary they will buy fewer goods and services.

BEFORE THE WEEKEND The surprising Friday night announcement on the dismissal of the person who had restored confidence in the institution that governs the monetary policy in Turkey instantly reversed much of the previous success: the lira lost 15% on Monday morning when the markets opened.

The hard-won confidence had suddenly been lost again.

With the opening of the European markets, the depreciation slowed down, but remained significant, at about 10%. In one day. Investors, who welcomed the decisions to return to conventional monetary policies, were taken by surprise. Calm markets are just history now.

We should point out here that a currency considered risky, with users and investors not trusting its capacity to preserve its value (purchasing power), can only be attractive by offering an additional return, therefore a higher interest rate, above the expected inflation rate.

Consequently, the more volatile the currency, and the less credible those managing it, the higher the interest rate required.

The Turkish lira carousel: what Ağbal gained in five months, Turkey lost in one weekend. After the surprise announcement, the lira stabilized at around 7.9 lira/ US dollar on Monday.

When it comes to monetary policy, the costs of reversing errors are high, as we have seen, but even so, having paid those costs (higher interest rates) things will not go back to where they were. Let me explain: the exchange rate will only partially reverse its depreciation, so there will still be a depreciation compared to the initial starting point. Somewhat similarly, inflation cannot be reversed: increased prices will not decrease, clearly not to where they were before. They continue to increase on average, but at a lower growth rate. In other words, although the remedy works and saves the patient, the scars remain and are often deep and painful.

RESULTS IN JUST A FEW MONTHS Governor Ağbal, a former finance minister, was ap-

pointed in November last year, but in just a few months at the helm of the central bank he stabilized the national currency, began rebuilding the bank's reputation, and began restoring its foreign exchange reserves. He did what he had been hired to do.

How he succeeded should not be a surprise. He applied the basic macroeconomic rules. In an inflation targeting regime, when inflation is above target, the central bank must raise interest rates, which influences overall demand, putting the brakes on inflationary pressures and, implicitly, on the economy. It is a cost that must be paid, because the alternative is much worse: rampant inflation, a continuous depreciation of the national currency and a possible balance of payments crisis. Raising interest rates is by far the most powerful and effective weapon that central banks have and use against inflation.

Ağbal's predecessors, of course, tried other mechanisms that seemed less taxing for the economy, but there was no cutting corners. They failed, as they quickly ran out of ammunition in the fight against currency depreciation: they spent about $130 billion (18% of GDP) of the country's foreign exchange reserves to defend the lira. In net terms, the remaining foreign exchange reserves appear to be only $11 billion, or 1.5% of GDP. LOOKING TO THE FUTURE The new governor is Shapa Kavcioğlu, a banker and former member of parliament. He is known to disapprove of high interest rates, recently stating in a press article that the central bank should not "insist on high interest rates." However, immediately after his appointment, he promised to fight inflation. It is not clear how he might do that, because with low interest rates he will not be able to fight inflation, instead he might supply it with ammunition. At this point, we can only say that he will have important decisions to make. The stakes are high: a wrong strategy would create major problems for the financial system, deficits in the country's financing, depreciation and more inflation. Knowing that there is a propensity for low interest rates, but also a declared intention to cut inflation, even though both practice and theory tell us that the two are mutually exclusive, we can only look carefully (and with professional curiosity) at the future decisions of the Central Bank of Turkey and their effects, and, of course, learn the necessary lessons. But before that, we wish the new governor success, inspiration, wisdom, nerves of steel and many victories against inflation.

Of course, as we mentioned on opiniibnr, we should take a moment to rejoice and appreciate that the National Bank of Romania has not entered dangerous games.

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OPINION

TAX COUNCIL HEAD DANIEL DAIANU:

GDP TO RETURN TO PRE-PANDEMIC LEVELS IN EARLY 2022 The return of GDP to pre-pandemic levels will happen in early 2022, just like almost everywhere in the European Union, Tax Council Chairman Daniel Daianu told a regional video conference, emphasizing that he is "almost certain that next year will see economic growth."

BY DANIEL DAIANU "It is almost certain that there will be economic growth next year. But the return to prepandemic GDP levels will happen at the beginning of 2022, just like almost everywhere in the EU. There will be however big differences between economic sectors, at least in the first half of 2021, the HORECA industry will still suffer a lot. The industry is likely to do increasingly better and agriculture is expected to perform better than in 2020. Constructions too are likely to fare better. This is also why the labor market analysis needs to be nuanced aggregate figures can hide 'delayed' unemployment and large sectoral differences.

The more EU's large economies - with Germany playing a central role - recover, the more our economy stands to benefit. The comeback of the economies where many of our fellow citizens work or with which we have considerable trade relations matters of lot for us," Daianu said.

The Tax Council head noted that "agribusiness must be a strategic axis for the economic

development of Romania, also bearing in mind the effects of climate change," given that "we have favorable natural conditions, there is a lot of European money available for land-use planning and the construction of irrigation systems." "The state must be active in this field, to help the development of collection and storage networks. Romania must grow to at least match Poland and Hungary in the industry and export of agri-food products.

Reckless/criminal deforestation must be severely punished. Infrastructure building must be a forceful constant in the coming years, therefore in 2021 as well, not only because the eastern region of Moldova needs modern roads, railways, and bridges, but also because the country needs better inner cohesion.

Turning to digital economy requires human support, both in terms of state-of-the-art resources (IT experts) and the education of citizens - which comes naturally to a certain extent. Large university centers that excel in IT intelligence can help transform the economy," added the Tax Council official. Daianu emphasized that "inflation will be kept under control,

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as the current data and forecasts of the National Bank of Romania show that the citizens' purchasing power is not going downhill".

"The Tax Council estimates this year's cash budget deficit at 9.8 percent; we will see how the year ends. In 2021, if part of the one-off economy supporting measures continue (there are announcements in this regard), narrowing the deficit to seven percent of GDP will be difficult. It very much depends on a better collection of tax revenues," Daianu also said.

He warned that a distinction must be made between "rigid and non-permanent (one-off) expenditures, apart from budget revenues. The macro correction mainly has to do with rigid expenditures that this year came to consume more than 90 percent of the tax revenues (that include contributions)."

"These are issues that go past next year and that hold challenges for the economic and social policy. One would say that this is not only in Romania, but there are special accents here because we have surprising development gaps for an EU member state - even if in the last two decades the per capita income has increased to more than 2/3 of the EU average

for purchasing power parity (speaking of internal gaps, aggregate figures are in many ways misleading). Public health becomes an absolute priority, a national security problem, because we will be visited by other viruses as well and we'll experience other extreme events; especially in a country with many lowincome citizens, public health cannot rely on a private system alone. Public health financing from the public budget must be increased, just like the financing of public education. This is why a robust public budget is needed, with higher revenues," the economist pointed out.

Speaking of climate change as an existential threat, Daianu said that this, as well as other major dangers require robust public budgets and versatile economic systems.

"If we are living now in a highly adverse period (health and economic crisis), in the coming years we will wade through the great transition induced by the need to combat global warming, for 'greening', for the structural transformation of economies, which will put the public and private budgets under stress. I reiterate the importance of absorbing European funds for this purpose! It would be good if the mayors of the big cities in Moldova

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(I mean Bacau, Iasi, Suceava, etc.) consulted more often, if they created an alliance (as also attempted in western Romania) to promote projects of importance for the areas they manage, including public-private partnerships, projects with strong leverage effects. I am thinking of European resources, of the public budget in general," Daianu added.

The Tax Council head considers that Romania needs a (promotional) development bank, similar to those in many other European countries, including Germany, Austria or Poland.

"Such a bank can help the absorption of European funds and can help the state in industrial policies, in the development of agribusiness. An Investment Fund by the Polish model is also a goal to be pursued, to be set in the service of the economic development policy. Emerging, more robust economies with small deficits have more leeway, they benefit from central bank backstops. That's why we need to make the most of European resources, which provide an exceptional opportunity," added Daianu. He underscored that Romania has started the battle against Covid-19 with a deficit of over four percent of GDP, the largest in the EU, and a one-of-a-kind external deficit among EU's emerging economies, the largest in the region.

"The budget deficit this year, probably at over 9 percent of GDP, is in line with deficits in emerging economies in the region, but our room for maneuver has been considerably reduced as we were hamstrung from the start. The decline in GDP in 2020 will probably be towards 5 percent. In 2021 most EU countries will have considerably declining budget deficits (as nonpermanent spending caused by the pandemic and the economic crisis will be reduced). In absence of a macro-economic correction, Romania would be driven off the mainboard and we would end up in 2022 with public debt at over 55 percent of GDP and financing would

become increasingly problematic - as an effect of non-linearity," he warned. In his opinion, the financing of deficits calls for a credible three- to four-year EU-funded correction program to calm the markets and the lenders, so that in 2024 the budget deficit be cut below three percent of GDP. According to Daianu, the macroeconomic correction (the cut of the budget deficit) must take into account both the restructuring of expenditures and higher tax/budgetary revenues. "The tax system must be transparent and fair; all citizens and companies must pay all the loopholes that render the tax system unfair must be eliminated. There should be no tolerance for tax evasion, incorrect tax optimizations or undue rents," he said.

The economist went on to emphasize that Romania needs a robust public budget.

"Ensuring essential public goods for the economy is vital: public health, public education, combating climate change as an existential threat, basic infrastructure (roads, railways, landuse planning). The state of the public health system calls not only for profound reforms, but also for additional resources; the same goes for education," considers the Chairman of the Tax Council. According to Daniel Daianu, with other revenues apart from taxes, the public budget's own resources could reach over 32 - 33 percent of GDP in a few years.

"With the European money, the public budget resources could reach 35-36 percent of GDP. In Europe (EU) and the US increasing tax/budgetary revenues by combating tax evasion and tax avoidance is common practice.

Romania must capitalize on this new vision and attitude of its EU and US partners. Let the business circles lobby not just for a predictable fiscal environment, but also for a robust public budget that finances basic public goods. Let them lobby for a transparent and fair tax regime, confront dodgers. That is, be good corporate citizens," Daianu concluded.

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INTERVIEW

CEC BANK POWERS THROUGH With a team strongly committed to modernizing and streamlining its operations, CEC Bank is in a good position to reach its growth goals. In an interview with Business Arena, Bogdan Neacsu, General Manager and President of the bank's Executive Board, outlines some of the strategy behind the bank's positive results and also touches upon some of the current challenges facing the industry. s To what extent was CEC Bank's development strategy affected by the coronavirus pandemic?

Twenty-twenty was a complex, challenging year. In spite of that, we managed to grow.

CEC Bank recorded an increase in assets of over 25% last year. In the first months of the pandemic, we focused on working around the challenges to business continuity, as financial services are essential and customers still need access to cash and financing. CEC Bank never stopped its lending operations. At the same time, we continued to implement the bank's modernization program. Digitalization and new new technologies play an important role in our strategy. We plan to implement an omni-channel business model, making our services available both in our branch network and online. The pandemic has accelerated the adoption of new technologies, confirming that we are on the right track and our focus on digitalization has been the right choice. We have already launched online services such as opening of accounts for new customers and personal loan applications, and we will continue to add more products like consumer

loans and SME products to our e-commerce platform. s What challenges is CEC Bank currently facing in the banking market?

In Romania, we are facing a gap in terms of financial inclusion: less than six out of 10 people have a bank account, compared to an average of nearly 100% in the European Union.

The level of financial inclusion is even lower in rural areas, and a branch network to cover those areas is necessary. There are still many people who don't have an adequate level of financial literacy, and who need advice for more complex products, such as loans. As a state-owned organization, CEC Bank has a responsibility to society to support financial literacy and increase financial inclusion.

According to our business plan, CEC Bank will continue to have a large footprint, the largest bank branch network in Romania, with over 1,000 units. At the same time, we continuously monitor consumer behavior, so we have also embarked on a process of digitalization.

The challenge that I can see at the moment is keeping up with the technological

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BOGDAN NEACSU, General Manager and President of CEC Bank's Executive Board

"As a state-owned organization, CEC Bank has a responsibility to society to support financial literacy and increase financial inclusion."

changes and with the changes in consumer behavior. History, and especially the more recent period, has taught us that things can change quickly and in unexpected ways. Digitalization is a trend in recent years, but I don't think we have ever expected to see this effervescence in the fintech area, with applications and non-financial institutions that compete with the top banks in terms of number of customers. And fintechs have achieved this precisely because they focus on user experience, speed and convenience for their products and services. I think this is a good lesson, from which the banking system will have to learn. Customers should come first, banks should come up with products and services that serve needs and are useful in our daily lives. I think there is great potential for growth in the area of transactions and operations, but more customer orientation is needed. s To what extent did CEC Bank achieve its 2020 objectives?

In spite of the pandemic, CEC Bank ended 2020 with exceptional results. First of all, we didn't stop lending for a second. Our preliminary financial data looks very good, with a re-

cord increase in assets, over 25%, twice as much as the market average. Also, customer deposits increased by over 24%, and in terms of loans, we had a double-digit increase. The bank continued to be profitable and sustainable. We recorded a net interest income of over one billion lei in 2020, stable compared to 2019. In terms of income, the asset growth was offset by the downward

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trend in market interest rates. The interbank interest rate (ROBOR 3M) decreased by about 25% in 2020 compared to 2019, from an average of 3.13% to 2.38%. The decrease in interest rates mainly affected the loan portfolio, CEC Bank maintaining attractive interest rates on deposits, as the new amounts attracted from customers are the main source of financing for us. At the same time, we had a prudent approach and we wanted to be prepared even for the darkest scenarios, so we recorded additional expenses with loan provisions. Last year, the additional expenses with provisions stood at over 350 million lei, but even so, CEC Bank remained profitable. s How would you characterize the evolution of the Romanian banking market in 2020?

Twenty-twenty was characterized by many ups and downs. When the state of emergency was declared at the beginning of last year, many activities were suspended. And this was a shock for the economy, as was reflected by macroeconomic data. Romania reported an economic decline of over 10% in the second quarter of 2020, compared to the same quarter of 2019, but in the second half of the year, we saw signs of recovery and the economic contraction decreased to 3.9% at the end of the year. The developments in the banking sector mirrored those at macro level.

We witnessed a slowdown of lending activities in the first months of the pandemic, and then demand started to grow. Some segments performed very well: for example, mortgages with an annual increase of almost 10%. Thus, at CEC Bank, we managed to perform better than the market, with an increase of over 30%.

Currently, the banking system is well capitalized and profitable, even though banks' results were affected by higher loan provisions worth hundreds of millions of lei last year. The

non-performing loan rate remains low in Romania, at around 5%, well below the level recorded during the 2008-2010 crisis, when non-performing loans reached over 20% of banks' portfolios. The situation looks less dramatic as banks recorded additional provisions on time, they had a balanced approach to lending, and rapid solutions were identified for loans moratorium during the state of emergency. In fact, the vast majority of customers who benefited from deferred installments have resumed payments, and the volume of new requests since the beginning of the year - after the extension of the moratorium - is very low. s What development opportunities result from the somewhat forced digitalization triggered by the pandemic?

More than ever, this period has been marked by restrictions on people's mobility.

So, we all had something to gain from digitalization: both customers and banks. Even without the pandemic, digitalization offers speed and convenience. In a context dominated by imposed or self-imposed restrictions, digitalization proves all the more useful. Moreover, in certain situations (time constraints, mobility issues) digitalization is the only option. If we also take into account that about 80% of all banking operations are done over the Internet or using Mobile banking services, sometimes even by people in their 70s, it's becoming increasingly clear why the number of mobile banking users has doubled.

In the recent period, CEC Bank launched several online and digital initiatives which prove that digitalization is not just a project for the future, and that CEC Bank is an increasingly important player in this segment.

Among our digital initiatives, I should mention online opening of accounts, even by new customers, personal loans, through our CEC_IN e-commerce platform, instant

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payments and Alias Pay money transfers, using the Transfond system, Apple Pay as well as Google Pay digital wallet. s What customer profile changes have you seen and what investments is CEC Bank planning to make in order to adapt to the new market requirements?

Work from home is a trend among our customers, they prioritize savings and do business in a digital environment more and more. These are partly direct effects of the current epidemiological context. Migration to digital channels has been a necessity in many industries, including banking. Developing those channels for the post-COVID-19 reality is the next step forward, as the world is increasingly going to rely on online services and business adaptability.

At CEC Bank, we will continue to work for a rapid transformation and modernization of the bank, including operational and technological improvements. We are already working on enabling online account opening for SMEs, and implementing online solutions for trade finance products for SMEs. In addition, we look to align our processes to best available technologies worldwide. s What are your estimations on the evolution of the main macroeconomic indicators this year and how will they be reflected in the bank's activity?

Although we continue to operate in a volatile and unpredictable environment, we have learned to adapt. For the this year, we are counting on a solid, but sustainable increase in lending of about 10%. The areas in which we see a lot of potential are agriculture, construction, and logistics. We are not overlooking sectors affected by the pandemic such as hospitality, where business people continue to invest and need funding.

s What are your main professional goals this year?

My main target is to ensure the implementation of the business strategy, which aims at consolidating and modernizing CEC Bank.

The medium term objective we are holding on to is for CEC Bank to become the fifth largest bank in Romania. s To what extent do you think there is still potential for new mergers and acquisitions on the Romanian banking market?

In recent years, there have been major international and local transactions. In the last two years alone, on the Romanian market, we saw mergers and acquisitions in the banking sector, with several transactions that were in fact covered by the media. I think there is still room for consolidation in the market. It remains to be seen if and how new such transactions may be completed. s CEC Bank's potential listing on the stock exchange has been discussed at various times. s To what extent could such a scenario be feasible at this stage?

Such a decision belongs to the shareholder, which is the Romanian state. We are just operational managers of the business.

And our role is to streamline the bank's activity, to grow and modernize CEC Bank so it can be among the top five most important banks in Romania. Simply put, our role is to manage the bank responsibly and increase its value, which is not only for the benefit of our shareholders, but also of our customers. And I think our achievements and the projects launched in the last two years speak for themselves: our efforts to modernize and streamline CEC Bank are already taking shape and are visible in the results.

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WHO OWNS A STATE-OWNED COMPANY ANYWAY? On the 26th of March 2021, a brisk Friday morning, the Bucharest underground was blocked by two hundred or so protesters, taking hostage almost one million people struggling to get to work.

BY OVIDIU CONSTANTINESCU, FACE PR AND NEWS Metrorex union leader Ion Radoi reacted with his guts rather than his brain to Transport Minister Catalin Drula’s decision to demolish the kiosks rented out by the Union, and asked his henchmen to bring the city to a standstill. It is a scene reminiscent of that from the epic 1985 movie Mad Max - Beyond Thunderdome, when Tina Turner, playing the ruthless Aunty Entity, the founder and ruler of Bartertown, is commanded to acknowledge that the one who actually owns the city is a dwarf from the underground world called Master and his giant bodyguard Blaster. In an act of defiance, the Master of the methane refinery that runs on pig feces, literally turns off the power button and demands Aunty Entity to publicly acknowledge that "Master Blaster rules the town".

This clash of wills between "Jimmy" Ion "Hoffa" Radoi and Catalin Drula brought forth once again the debate over the role of the Romanian trade unionism in general and the trade union leaders in particular, and how they think that the (state) companies exist with the sole purpose to serve their interests.

Ion Radoi is a true survivor from the 90s, when the Romanian industry was still in the hands of “the people”. While other almighties of the trade unions faded away into public

irrelevance once their industries were privatized, Ion Radoi enjoyed the enviable situation of being the Master Blaster of the Bucharest Underground, the one who controlled the people who ensured the running of the Bucharest metro. After two spells in the Parliament as a “socialdemocrat” deputy and senator respectively, he returned to what he knew best: trade and unioning.

Radoi’s power was so great that for the past three years nobody in the company has dared to check if the disputed concession contract is still in force and nobody within the management has questioned whether it should/would/might be extended in case it expired. Let alone questioning the wisdom of signing such a contract in the first place, whether it was a good idea and why should it be renewed. Was the contract in the benefit of the company and the Romanian people (who actually own the damn place through the Ministry of Transportation) or was it in the benefit of a rather small group of people that milked the company shamelessly and with impunity?

Which brings us to the mother of all questions: who owns a state company: the state, in the name of all the people in the country or the trade union in the name of the people in the said company? What is the purpose of a state-owned company: to be

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profitable for all the people or to provide jobs and wealth for the people within the said company?

According to Ion Radoi’s philosophy, the underground is there for the benefit of the people working there and it doesn’t really matter if the company runs at a loss or not.

Is not his problem. Which, actually, is not.

The costs are covered through subsidies: 40% of the Metrorex’s costs are covered by all the Romanian people, who, incidentally, pay 40% of Radoi’s men’s salaries. The operational costs should be the management’s problem, but the management is political, and what politicians hate the most are strikes. So, the political management is not interested in counting and keeping under control the operational costs of the business as such, but maximizing the political benefits and reducing unpopularity risks. Keeping the union happy seems to be the main objective of the management.

Running the Bucharest underground is neither a state business nor a public service: it is just a way in which the entire nation contributes to the wellbeing of a few. And this is how many trade union leaders and state-owned company managers have joined a crooked brotherhood that has drained off the resources and left the state’s coffers empty, all in the name of social peace and better salaries for the workers.

So what was different this time around with "Jimmy" Ion "Hoffa" Radoi? First of all, his reaction was illegitimate, visceral and illtimed. So, he didn’t get any public sympathy whatsoever. According to a poll, two thirds of Bucharest residents considered the protest as “illegitimate”. Everyone knew that he didn’t receive any political support either.

This time, it was plain for everyone to see that the battle was not about the trains, public safety, not even about the workers’

OVIDIU CONSTANTINESCU

salaries. It was about the union’s perks and show of power.

In the opposing corner, there was a minister that knew the real numbers and wasn’t ready to negotiate while the opposition was trying to twist his arm, and – for a change – he wasn’t pressed by the party to solve the matter quickly and quietly. On the contrary.

Moreover, Catalin Drula was a tough nut to crack, who, in less than six months, had become “Mr. Motorway.” The Transportation Minister has managed to unblock many motorway and express road projects that have stayed idle for years. That was a game that Ion Radoi didn’t know how to play.

Last time Radoi called a strike was in November 2009, during another global epidemic incident and a global economic meltdown. It was just one month before the presidential elections. His party's candidate, Mircea Geoana, lost. See what I mean?

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REAL ESTATE

MALL AND RETAIL PARK DEVELOPERS EXPAND TO COUNTIES LACKING MODERN RETAIL PROJECTS The modern retail map of Romania is completing county by county, while real estate developers have delivered in the last year the first modern retail projects in four counties that were not covered yet, namely Dâmbovi]a, Covasna, Harghita and C\l\ra[i. Moreover, in the next period the counties of Vaslui, Cara[-Severin and Olt will also be covered, so the last "strongholds" not conquered by the mall developers will remain Teleorman and Giurgiu, according to Retail Regional Cities report, made by Cushman & Wakefield Echinox real estate consulting company.

Cushman & Wakefield Echinox describes the modern shopping centers as new projects or those that have undergone a significant renovation over the last 20 years and whose leasable area exceeds 5,000 square meters. Alexandria, the residence of Teleorman county, and Giurgiu, currently have commercial galleries, but they are below the 5,000 square meters threshold.

Real estate developers are especially active on the retail parks segment, where the access to large stores is directly from the outside, these projects being preferred more than the shoping centers that include more common areas, involve higher investments and are subject to more restrictions in delicate medical situations. Thus, with the exception of Dâmbovi]a Mall, a mall-type shopping center opened by Prime Kapital and MAS Real Estate in Târgovi[te, in the other counties recently covered by developers, there were inaugurated retail parks, namely Sepsi Value Center in Sfântu Gheorghe (Covasna County), NEST Retail Park in Miercurea Ciuc (Harghita County) and Catex Retail Park in C\l\ra[i.

There are currently five counties without modern retail centers, counties with a total population of about 1.8 million inhabitants. Re[i]a, with a population of about 73,000 inhabitants, is the largest city without a modern retail project, where there is planned by Ceetrus a major urban regeneration project that will include a shopping center of approximately 35,000 square meters. In Slatina, the Belgian developer Mitiska REIM plans both the expansion of the existing project and the development of a new retail park with an area of

about 10,000 square meters. Last but not least, in Vaslui county Prime Kapital will develop Bârlad Value Center (16,500 square meters for lease), while the Polish group Scallier is planning a Funshop retail park in the county residence.

Bogdan Marcu, Partner, Retail Agency, Cushman & Wakefield Echinox: “The fact that retail developers are focusing their attention to a number of tertiary cities, considered less attractive so far, shows that the modern retail market in Romania remains alluring, offering significant development potential.

The imminent completion of the national supply of commercial spaces will only bring Romania closer to the level of more developed countries in Central and Western Europe, countries where each community benefits from modern retail options adequate to the purchasing power and consumption habits.” On the other hand, the future offer of commercial spaces in Bucharest is limited, the most important projects currently under construction and whose delivery is planned in 2021 being the expansion of the Colosseum shopping center in the northwestern part of the Capital, the first phase of Fashion House Pallady outlet shopping center and Greenfield Plaza, the retail component of Greenfield residential project from B\neasa. These three developments total an area of approximately 30,000 square meters, according to Bucharest Retail Market report.

With a retail stock of only 65,000 square meters and a density of 171 square meters / 1,000 inhabitants, Bucharest's Sector 5 is the least served by modern retail projects, the most important developments in this area being Vulcan Value Center and Liberty Center.

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The World Bank’s Women, Business and the Law index reveals wide variations in women’s rights at work. Overall, it says women have only threequarters of the employment rights that men enjoy.

The nations with a perfect score in the Index are Belgium, Denmark, France, Iceland, Latvia, Luxembourg, Sweden and, joining the list this year, Canada, which recently improved parental leave rights. In these countries, the index shows, women who work are on an equal legal standing with men, measured on indicators including access to jobs and protections on gender discrimination and sexual harassment in the workplace.

Although there have been improvements in many areas, with 40 nations enacting reforms to improve gender equality in the past three years, in the Middle East and North Africa, women workers still have just half the legal rights of their male colleagues.

An increasing number of women manage industrial facilities, major companies and build their own successful businesses in Romania nowadays.

They have achieved a high level of recognition.

Therefore Business Arena Magazine proudly announces the upcoming special awards gala dedicated to the ladies that make a difference in business.

Experts agree that Romania has seen some improvement in gender equality in recent years, but efforts must still be made to ensure equal opportunities for men and women in the workplace.

In this context, Business Arena continues its tradition, celebrating women’s achievements and their vital contribution to the success of business and banking activities throughout Romania. On this note, our publication proudly announces the upcoming special awards gala dedicated to the ladies that make a difference in business.

The Most Admired Business Women Awards Gala 2021 will bring together entrepreneurs, investors, business leaders, diplomats, and professionals from a wide range of sectors to celebrate the successes of women in business.

For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

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BUSINESS ARENA - 101st ISSUE

CRIPTOCURRENCY

WHAT INTERESTS INFLATE THE PRICE OF BITCOIN? This post will fuel conspiracy theorising. But I cannot help noting an effort, apparently concerted, to drive the price of Bitcoin up and prevent its spectacular falls, as it happened on more than oneoccasion in the past.

BY RADU CR|CIUN Since investor excitement (or naivety?) needs to be continuously spurred on, here comes the heavy artillery. To start with, many entrepreneurs and well-known tech companies have announced buys in Bitcoin: the business intelligence company MicroStrategy in December, Elon Musk and Tesla inFebruary and more recently, through its CEO, Twitter made the announcement that it is looking into buying Bitcoin. It is not without interest that the Twitter CEO already owns a sizeable portfolio in Bitcoin that grew ata rate of USD10,000 a month over the last years.

And if things had been confined to an arrangement between world class tech companies and Bitcoin, the question marks would have been modest, if any at all.

But when large financial institutions are seen to come up with flimsy arguments about the appeal of the RADU CR|CIUN

cryptocurrency, these concerns increase significantly, and explanations are not easy to find.

Along the same lines, a Financial Times article also noted the unconvincing manner and shallow arguments that Citibank and Bank of

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America used when turning into Bitcoin advocates. As for me, I would like to refer to an article published by Marketwatch, looking at the research note by Citibank which prompted the bank to say that "Bitcoin is at a tipping point and could become currency of choice for

global trade."

The note purports that more and more businesses will take up Bitcoin, given its potential "global reach, neutrality and lack of forex exchange exposure." Global reach - that remains to be seen given the high number of

competing cryptocurrencies, neutrality - maybe, but the currency risk is definitely there and it very much resembles the existing forex risks when using traditional currencies. Why a bank would make such misleading statements is beyond me.

One thing should be clear, though. Any company that has revenues in one currency and pays expenses in another has a forex position.

And a forex position brings by default a foreign exchange risk. The only way to avoid it is either by using the same currency for both accounts payable and receivable or use forex risk hedging instruments.

This is why, Bitcoin is far from being risk-free as long as wages, electricity, rents or any other expenses are not paid in Bitcoin. Unless this happens, Bitcoin's wild bouts of volatility will lead to higher forex risks for businesses that intend to charge for their goods and services in Bitcoin but pay wages in USD, EUR or RON. A similar collection of nonsense is provided by a "global economist" and best-seller author, in an FT article entitled "There are good reasons for business leaders to invest in Bitcoin," where he brings aseries of reasons that contradict his final conclusion. We are told that Bitcoin may be the digital gold of the future as a store of value, while saying in the same article that Bitcoin's volatility is six times higher than that of the golden metal. What a store of value it turns out to be...

It is also mentioned that as it is not subject to inflation, Bitcoin preserves its real purchasing power. Again, this is true only if most things bought are expressed in Bitcoin. As we are clearly not there, Bitcoin's volatility causes the opposite effect. I believe that we must care whether the value of Bitcoin in our accounts remains at USD 50,000 or whether it drops to USD 40,000 or even USD 20,000.

Stances difficult to make sense of...

Have a nice weekend!

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CRIPTOCURRENCY

CRYPTOCURRENCIES ARE NOT CURRENCY, BUT CRYPTOASSETS My guest this week is Cristian Popa, the well-known and highly esteemed deputy governor of the National Bank of Romania between 1998 and 2014.

BY RADU CR|CIUN RC: Cristi, thank you for the kindness of accepting my invitation. In your opinion, are cryptocurrencies an economic or a social phenomenon?

CP: They are primarily an economic phenomenon because they have become so widely used due mainly to the higher yields caused by rising prices.

Unfortunately, one issue is that too many people mistake them for money. They are not money, but rather speculative financial assets, resembling more alternative investments that undergo extreme bouts of volatility. Let me now explain why they are not money.

Let us go back to the economics textbook that lists the three main functions of money: a medium of exchange, a unit of account, and a store of value.

Let’s take them one by one. Are cryptocurrencies a medium of exchange? They may be. It is true that they are more widely spread now than they were a few years back (there are even ATMs that exchange bitcoins for cash, they can be used to make payments - Visa and Mastercard have recently announced that they accept Bitcoin payments), but most investors buy cryptocurrencies to beef up capital gains, not to broker transactions. So the jury is in with a negative, albeit less clear verdict.

Can it be a unit of account? Definitely not, because a unit of account is normally a standard which requires some stability. Clearly, any floating currency fluctuates against other currencies, but not to the point of destroying the meaning of the measurement in that monetary unit. This test is failed - and not only Bitcoin. Are they an instrument that stores value? Let us not forget that there is nothing backing cryptocurrencies other than a scarce supply and the difficulty of the algorithmic “mining” of bitcoins. Their value can rise far beyond what it is today, but it can also sink to zero. There are no assets pledged as collateral. And if we think in terms

of monetary reference, the currency issued by central banks is recognized as liability on their balance sheet ,which includes the monetary base, the hard core of all monetary aggregates. And there are plenty of items on the asset side of a central bank balance sheet, in particular foreign reserves: gold, foreign currency, securities. In other words, conventional money benefits from the reputation of the central bank that makes sure that its product (currency irrespective of the form it comes in, as we mainly refer to the currency of account) retains its value over time by keeping inflation low and predictable to meet its primary objective of price stability. It is also backed by the significant assets that a reliable central bank possesses.

RC: Is it me, or are you suggesting that cryptocurrencies actually do not feature the right characteristics to be dubbed an economic phenomenon?

So could it still be a social phenomenon?

CP: I think I understand better what you meant.

My message was that conventional currencies cannot be substituted for cryptocurrencies (Jerome Powell, the Fed Chairman, recently compared them to gold, not to the dollar). On the social aspect of it, when they emerged, almost ten years ago, they were also the result of their creators’ protest against centralized establishment which included central banks.

I don’t think that cryptocurrency investors, a larger group, have that in mind.

RC: Maybe it was not an accident that they appeared ten years ago, given central banks’ eagerness to issue money during that crisis. And here we are, in a setting where money printing is sharpening again the appetite for cryptocurrency. Trust in conventional money, generously printed by central banks is fading.

CP: What happened ten years ago also had to do with technological maturity and availability which cryptocurrencies rely on. On the other hand, it depends which group we are referring to when we talk about appetite for conventional money. The FED

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statistics shows that in the past decade one to two thirds of the US currency in circulation was outside of the US. To my knowledge, this percentage hasn’t gone down, so a share of the population worldwide prefers to hold cash in dollars.

Coming back to cryptocurrencies, I would like to point out two concerns that they raise. Firstly, they also facilitate illegal transactions, from tax evasion and money laundering to criminal activities, due diligence and know-your-customer checks are not frequently performed; these are usually applied to conventional money transactions through regulated brokers. Hence the restrictions many regulators apply to brokers, in particular banks, given the multiple risks they would be exposed to - creditrelated, market and liquidity risks, etc. - if they held considerable positions in cryptocurrencies.

Secondly, their carbon footprint is larger than that of printing conventional currencies. This type of digital assets functions on huge amounts of energy which is rising. I was recently reading that mining Bitcoin and validating Bitcoin transactions uses up about 121.36 TWh of electricity, close to Norway’s annual consumption and exceeding the Netherlands’ or Argentina’s energy consumption (placing Bitcoin among the largest energy consumers in the world, if it were a country).

RC: Which one do you think will be the cryptocurrency of the future? How will the winner bedecided in a contest with tens of participants?

CP: There will be most likely several cryptocurrencies. Bitcoin will continue to have the largest share as a higher profile helped it achieve economies of scale. On the other hand, if the price plummets people might try their luck elsewhere, like in Lottery draws. Ethereum is also well-positioned and more visible now thanks to the frenetic use of non-fungible tokens (NFT) to buy digital art. But, if my understanding is correct, new third-generation cryptocurrencies are being launched as we speak. So don’t overlook the new contenders.

My advice, though, is “tread carefully because this is a speculative and volatile financial asset.”

They are not for everybody. They are suited more to diversified investor’s portfolios with a risk appetite to match and ability to cope with losses. Moreover, as it stands, there are many bubble-like features.

RC: One heck of an asset - risky and dangerous ...

CP: And unregulated!

RC: Ok, but then what are central banks after in this area?

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CP: The are not “after” anything. They do not speak of cryptocurrencies, but digital currency.

RC: This is an important distinction to make. Central banks are not after creating their own cryptocurrency, but digital currency.

CP: There are several differences here. Firstly, it will be issued by a central bank which means that it is similar to the fiat money central banks already issue. Secondly, the goal is to phase out cash and promote 1:1 transactions settled through the accounts that the eligible individual or business may have at the central bank. The process becomes much cheaper and faster if retail banks are circumvented. Digital currencies will also promote social inclusion because anyone, irrespective oftheir financial situation, can open an account at the central bank for transactions.

RC: I understood the benefits of central bank digital currency. However, strictly psychologically speaking, don’t you think that currency digitization proponents like exactly this lack ofcentral bank involvement these days, given the ultra-loose monetary policies over the past decade - the money printing?

CP: There is more to it than that. In a cashless economy, interest rates applied by central bank issuing digital currency will have more traction.

Tracking participants in transactions will decrease the possibilities for tax evasion, etc. Moreover, people are increasingly talking about multilateral arrangements on trading in various digital currencies, a new framework for making and settling cross-border payments.

On the other hand, they are still looking into how this is bound to impact the financing fundamentals of the banking system and financial institutions in a broader sense. Creating vulnerabilities that will indirectly damage financial stability is to be avoided. This is why I think that the major central banks will continue to be cautious about introducing digital currencies. A working group bringing together several important central banks (ECB, the Fed, the Bank of England, the National Bank of Switzerland, the Bank of Japan, the Bank of Canada and the International Settlement Bank) has been looking into this for some time, and the ECB has the same cautious approach on adopting a digital euro, a development also watched closely by the National Bank of Romania, if I am not mistaken.

RC: What requirements should a digital currency meet to become a rival to the US dollar on the international scene?

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It is a tall order in the medium term. The volume of transactions by third parties in that economy (both for business and financial purposes) should justify the large-scale use of that digital currency.This comes as a result not only of the size of that economy but also of investor confidence in the reputation of the issuing central bank and how it interacts with other institutions in that country orregion.

RC: Could a digital yuan compete with the US dollar?

China is now conducting a digital currency experiment in the urban area in the region. We are seeing a natural desire for the yuan to assert itself that reflects the global reach of the Chinese economy. We are also witnessing a gradual liberalization of inflows of foreign capital invested in sovereign and corporate bonds issued in China.

However, we would do well to remember that owners of digital currencies qualify as account holders and they are subject to centralized monitoring.

It is actually very difficult to pay cash or by credit card in China, the phone (which also acts as ID) being the predominant method of payment. And the digital yuan doesn’t even exist yet. On the flipside, though, bonds denominated in renminbi continue to carry positive nominal interest rates. So I do expect that the currency will play a bigger role, just as it happened and is happening with the euro, but I don’t see a complete replacement of the US dollar within the time frame that we are talking about.

RC: At the end, I would like to look into a somewhat extreme scenario. Can central banks’ enthrallment with digital currencies be explained by the need of a “nuclear bomb” to have in the event of galloping inflation spiraling out of control?

A mechanism of monetary stabilization in case the money supply deceases abruptly in a hyper-inflation setting where only a limited amount of conventional money would be allowed to be converted into digital money? How generous the limits should be is another story. I am only discussing the principle.

CP: I think this is an unlikely scenario, Firstly, after 2008-2009, the major central banks started using the balance sheet as an instrument on a large scale, i.e. quantitative easing. Despite the big numbers and the duration, these economies have not so far been at risk to see inflation exceed medium-term targets. Meanwhile, they avoided the aftermath of a deeper recession or significant slowdown when securities would have decreased and yields would have increased if central banks hadn’t stepped in. We are seeing changes in

sovereign bonds yields, brought about partly by investor fears of future inflation, but we also have the Fed’s opposite approach of letting the inflation rate go above targetin the medium term compared to the reference course. Something similar can also be seen in the ECB’s approach. For both central banks reputation and credibility are valuable assets and I doubtthey would easily put them at risk.

We can, however, talk about the many challenges and unknown turns of events to be expected when the current monetary policy is reversed and the quantity of security purchases is either decreased, or stopped or reversed or policy interest rate increases to supplement higher yield as a result ofquantitative tightening, Are these changes symmetrical? Do they generate effects of comparable magnitude as far as economic operators’ expectations and business volumes are concerned? Is it possible to implement them while ending the fiscal relaxation?

We are talking about a possible tax dominance and narrower central bank room for maneuver or even an implicitly impaired independence in the event of such a scenario. More radical voices suggest that inflation is the way to erode debt burdens into sustainability. Actually it is advisable to escape from debt through sustainable growth of the economy and potential GDP, the pre-requisite of which is price stability. Let us not forget that taxing inflation has never proven to work in the long term. The 1970s and1980 provide us with considerable literature that argues convincingly against inflation-related surprises (central bank independence is not a whim) and, as in many financial markets central banks are market makers, a possible investor reluctance to trade on a massive scale would be amajor risk.

Annual inflation rates in large economies that remain above target for a while (although there is a risk of de-anchoring inflation expectations) seems a more likely scenario than stabilization that would equal forfeiture. That would only work in a closed system, with stringent and comprehensive capital controls with more costs than benefits. Even almost three generations on, people find itdifficult to forget similar measures which were partly for political reasons ~ just like today’s Germany is extremely averse to inflation because the 1920s hyperinflation.

RC: Thank you for this discussion, Cristi.

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OP-ED: A DIGITAL DOLLAR WOULD HELP THE U.S. AND ITS ALLIES KEEP CHINA IN CHECK

BY FREDERICK KEMPE Chinese officials have made no secret that their greatly accelerated efforts at introducing and distributing the digital yuan are an opening move in their long-term strategy to undermine the dollar’s global supremacy and expand their influence.

Despite that, leading U.S. financial officials have rolled their eyes at any suggestion that deeper dangers lurk for the dollar, and thus also for U.S. national security, in the global digital currency race. Even as China marches forward and bitcoin’s value reaches $1 trillion, the Federal Reserve had been in no hurry to be a contestant.

UNTIL NOW. This week marked a public turning point for the most significant U.S. government officials engaged in international finance — Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell. Josh Lipsky, director of the Atlantic Council’s GeoEconomic Center, tweeted that it marked “the firing of a starting gun.” At a New York Times event with Secretary Yellen, CNBC’s Andrew Ross Sorkin prompted her most full-throated endorsement yet of a digital dollar, or Central Bank Digital Currency, or CBDC. Though Sorkin called Yellen’s attention to an Atlantic Council survey with Harvard’s Belfer Center, showing that 70 countries now have digital currency projects, Yellen’s focus

instead was on the domestic good a digital dollar could do Americans.

“I think it makes sense for central banks to be looking at it,” said Yellen, in a historic snippet on snapchat.

“I gather that people at the Federal Reserve Bank of Boston are working with researchers at MIT to study the properties of it. We do have a problem with financial inclusion. Too many Americans really don’t have access to easy payment systems and bank accounts. This is something that a digital dollar, a central bank digital currency, could help with. I think it could result in faster, safer and cheaper payments.”

In congressional testimony a day later, Fed Chair Powell also broke new ground, calling the digital dollar “a high priority project for us.” He added, “We are committed to solving the technology problems, and consulting very broadly with the public and very transparently with all interested constituencies whether we should do this.”

YET WHILE THE FED CONSULTS, CHINA EXECUTES.

Neither Yellen nor Powell mentioned China’s growing lead in digital currency development, yet that was the context. Their call-to-action coincides with China’s announcement earlier this month of a significant partnership with the cross-border payment system SWIFT, removing all doubt that Beijing

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CRIPTOCURRENCY

intends to internationalize the digital yuan. At the same time, China has concluded a free trade agreement, or FTA, with Mauritius, its first with an African state, in a deal that is designed to create a digital financial testing ground. “As China evolves its digital currency plans, it may ultimately be Mauritius that leads in this area for Africa,” write experts Lauren Johnston and Marc Lanteigne for the World Economic Forum.

The FTA agrees to promote “the development of a Renminbi clearing and settlement facility in the territory of Mauritius.”

This all comes as Beijing authorities took advantage of Chinese New Year celebrations on Feb. 12 to deploy three large-scale pilot projects to distribute digital yuan worth roughly $1.5 million in “red packets” of about $30 value each. Then this week, China expanded its testing program of digital currency handouts to the city of Chengdu, the capital of Sichuan province and the fifth most populous city in the country, where it is distributing some $6 million in digital yuan.

China’s ambition appears being to lay the groundwork now for digital yuan’s coming out party at the end of 2022 at the XXIV Olympic Winter Games in Beijing. The speculation is that Chinese organizers might require that all attendees and athletes download an app that would ensure all their payments at the games for hotels, tickets, food, souvenirs, and more are conducted in its new, digital currency. Even if one does not experience a physical boycott of China’s Olympic games, watch for digital boycotts by the U.S. and other teams.

It is hard not to compare China’s current lead in digital currency development, shrugged off by American officials until now, to its early global lead in developing the 5G, or fifth generation, broadband cellular technology standard.

Until the Trump administration responded alongside Western manufacturers, no one could compete with Chinese 5G providers and equipment manufacturers globally, most dominant among them being Huawei.

China’s consistent prioritization of techno-

logical advance underscores its recognition that in history the country that has taken the technological high ground in its era has most often also been the dominant international actor. If the U.S. loses the high ground of financial technological innovation, combined with a weakening of the dollar’s global dominance, the benefits for Beijing would be considerable.

China’s different approach to privacy provides it a competitive advantage. The U.S. and European need to satisfy privacy concerns will complicate CBDC development. Conversely, Beijing sees the digital yuan as a way to further strengthen its already formidable surveillance state, while also improving its ability to combat money-laundering, corruption, and terrorist financing.

In a newly released paper published by CNAS, authors Yaya J. Fanusie and Emily Jin capture how deeply China understands the geopolitical importance of their digital currency project. They relate how Yao Qian, the former head of the People’s Bank of China’s Digital Currency Research, compared his country’s digital currency progress to previous Chinese advances in robotics, big data, and artificial intelligence.

Speaking before a United Nations information technology conference, “Yao posited digital currency as part of ‘the Next War,’” write the authors, referring to an article of that title in the Economist that discussed technology’s central role in U.S.-China competition.

The Fed worries about being too hasty in introducing a digital dollar, given the stakes as the world’s reserve currency. The greater geopolitical danger, however, is how quickly it is falling behind.

The U.S. can still win this contest if it not only quickly develops a digital dollar, but collaborates on the creation of a digital euro, a digital pound, and a digital yen. The total firepower of these currencies would close the innovation gap quickly.

It would also demonstrate the value of working with allies, a centerpiece of Biden foreign policy.

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The latest addition to Business Arena's events calendar is a project designed to expand the scope of its annual award ceremonies.

The Brand Excellence Hall of Fame Awards is the fourth major gala event in Business Arena’s portfolio, joining the list alongside the Awards for Excellence, Most Admired Business Women Awards and Financial Leaders’ Hall of Fame.

Innovation, resourcefulness, perseverance and a culture of responsible risk-taking have helped many overcome major challenges.

Thus, the new awards gala recognizes organizations that have achieved outstanding results through initiatives that demonstrate excellence in brand management.

Celebrating achievement, innovation, and strong brand strategy, the 2021 Brand Excellence Hall of Fame Awards cover the following categories: • Automotive Brand of the Year; • Best Pharmaceutical Brand of the Year; • Brand of the Year in Hospitality; • IT Brand of the Year; • Most Admired Telecom Brand; • Best Real Estate Brand; • Romanian Brand of the Year; • Retail Brand of the Year; • Romanian Banking Brand of the Year; • Best Banking Brand; • Most Admired Banking Product

For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

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BUSINESS ARENA - 101st ISSUE

ENERGY INDUSTRY - GAS

FIRST JACKET IN THE ROMANIAN BLACK SEA

BLOCK INSTALLED

BY GSP TEAMS On March 31, Romania’s GSP announced the successful installation, 120km off the coast of the Black Sea, of the first fixed production platform in Ana Block.

The moment is significant for the history of hydrocarbon exploitation on the Romanian continental shelf of the Black Sea, given that it marks over three decades since, in May 1987, the first oil drilling installation in the region became operational. Today, after 34 years, Romania’s GSP, in partnership with developer BSOG, install the first fixed platform that will extract gas from the Romanian continental shelf of the Black Sea. “We are at a key moment for the Romanian industry, but also for the national energy sector. 34 years had to pass for Romania to find its courage, resources and allies to develop new projects of exploitation in the continental shelf of the Black Sea. This stage of Midia Gas Development project sends at least two messages. First of all, the Romanian industry has, again, the capacity to build big projects. The gas exploitation projects from the Romanian Black Sea shelf are sustainable,” said Gabriel Comanescu, president of Grup Servicii Petroliere.

The jacket (basis of the platform) for Ana fixed platform was manufactured at GSP’s shipyard in Agigea. The 1,300-ton installation measures 101m high, of which 69m are below

sea level. The jacket will sustain the topside of the rig, which is already built in the operational basis of GSP in Agigea and will be transported and installed shortly.

Grup Servicii Petroliere is the main constructor of the first development project for the extraction of new hydrocarbons in the Romanian area of the Black Sea. All stages, from design, manufacturing, transport to the actual installation of the platform are performed, in integrated system, by GSP. The 1,300-ton metal structure was transported to the installation site in the Ana block by GSP Bigfoot 2. The operation was of high complexity, which employed a large part of the GSP fleet: the largest floating crane in the Black Sea, GSP Neptun, the multifunctional barge GSP Bigfoot 1, with a crew of 160 people and several multifunctional support ships.

The moment is significant for the history of hydrocarbon exploitation on the Romanian continental shelf of the Black Sea, given that it marks over three decades since, in May 1987, the first oil drilling installation in the region became operational. Today, after 34 years, Romania’s GSP, in partnership with developer

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BSOG, install the first fixed platform that will extract gas from the Romanian continental shelf of the Black Sea. “We are at a key moment for the Romanian industry, but also for the national energy sector. 34 years had to pass for Romania to find its courage, resources and allies to develop new projects of exploitation in the continental shelf of the Black Sea. This stage of Midia Gas Development project sends at least two messages. First of all, the Romanian industry has, again, the capacity to build big projects. The gas exploitation projects from the Romanian Black Sea shelf are sustainable,” said Gabriel Comanescu, president of Grup Servicii Petroliere. The jacket (basis of the platform) for Ana fixed platform was manufactured at GSP’s shipyard in Agigea. The 1,300-ton installation measures 101m high, of

which 69m are below sea level. The jacket will sustain the topside of the rig, which is already built in the operational basis of GSP in Agigea and will be transported and installed shortly.

Grup Servicii Petroliere is the main constructor of the first development project for the extraction of new hydrocarbons in the Romanian area of the Black Sea. All stages, from design, manufacturing, transport to the actual installation of the platform are performed, in integrated system, by GSP. The 1,300-ton metal structure was transported to the installation site in the Ana block by GSP Bigfoot 2. The operation was of high complexity, which employed a large part of the GSP fleet: the largest floating crane in the Black Sea, GSP Neptun, the multifunctional barge GSP Bigfoot 1, with a crew of 160 people and several multifunctional support ships.

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ENERGY SECTOR DECARBONIZATION COMES INTO FOCUS The health crisis has amplified concerns on climate change and drawn more attention towards the rise of sustainability and environmental protection across the globe. The need for decarbonization has generated changes in global strategies of governments and companies in terms of energy efficiency and renewable energy sources across the globe. Globally, the major powers and, at the same time, the biggest polluters, China and the US are fighting for decarbonisation, while in Europe, the European Green Deal is engaging member countries towards a clean and circular economy.

In Romania, the decarbonization of the energy sector is largely based on the support provided by the European Green Deal. The potential of renewable energy on the local market can become the engine of the decarbonization of the Romanian energy sector, as long as public initiatives synchronize with business intentions, according to the analysis of EY Decarbonization of the Romanian energy sector through renewable energies.

Mihai Drăghici, Senior Manager, Consulting, EY Romania, said: "Romania has a slight advance in terms of the share of renewable energy compared to the European Union average. At the same time we are at the top of the EU countries in terms of dependence on coal for electricity generation at an approximate cost. 50% above the average price in the energy market in 2020. Accelerating the transition to renewable energy is a necessary economic objective in the context of current CO2 prices, renewable technology prices, European funds, and a sustainable energy mix.

EY supports this transition through its own contribution, EY is 'carbon negative' in 2021, but also through solutions offered to companies on decarbonisation, improving energy

efficiency and attracting European funds to achieve these objectives.”

ROMANIA’S ENERGY MARKET

Romania reached its 2020 EU renewables target of 24% of final energy consumption coming from renewables several years ago. In order to reach its 2030 renewables target of 30.7%, Romania plans to add around 7 GW of new renewables capacity, of which around 3.7 GW is projected to be solar projects, according to the plan.

In terms of energy consumption, in 2019, little over of 24% energy consumption originated from renewable energy sources, placing our country on the 10th place in the EU and above the union’s average level.

In 2020, electricity production in Romania was comprised of 12.4% wind power, 3.4% from photovoltaic solar panels, while 27.6% of the electricity production was coming from hydropower. In total, renewable energy production (wind, photovoltaic and biomass) amounted to 16%. Romania’s greenhouse gas emissions fell over 50% compared to 1990’s levels due to a significant reduction in energy

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demand and industrial activity, increase in energy efficiency and gradual compliance to more restrictive environmental standards.

Energy still represents the main source, accounting for 2/3 of national GHG emissions, followed by agriculture, industry and waste management.

IN ROMANIA, THE ENERGY TRANSITION TO LOW CARBON CAN BE ACHIEVED BY SYNCHRONISING PRIVATE AND PUBLIC INITIATIVES

Romania has witnessed a decline in terms of renewable energy attractiveness, partly due to the lack of appropriate regulations and appropriate governmental support. According to EY latest Renewable Energy Country Attractiveness Index (RECAI), once among the top 40 most attractive countries in terms of renewable energy in 2015 (34th place), in 2020, our country has fallen below this top, being surpassed by European countries such as Poland, Greece and Austria.

However, in the context of the introduction of the European Green Deal, several multinational energy companies have assimilated the wave of changes and implemented the sustainability agenda in their business strategy. At the same time, they announced their intention to invest in clean energy projects at the local level.

At governmental level, last year Power Purchase Agreements were introduced, in order to boost investments in the renewablessector by deregulating the local electricity market, per EU commonmarket regulations, thus allowing investors to minimize transactions risks. Until this legislative change, all electricity transactions could be carried out solely on the centralized market in a transparent, public, competitive and non-discriminatory manner. This restriction on freely negotiated PPAs was seen as the main obstacle preventing investments in new generation capacities, especially in the renewable sector.

Moreover, a Contracts for Difference scheme is currently assessed at the Ministry of Energy level, with financial support from the EBRD, in order to support investors interested in developing clean energy projects in Romania. The New Electricity Law , where drafting process is currently ongoing and managed with support from EBRD, will include relevant provisions related to EU environmental legislation, system flexibility, increased interconnection and market liberalization that represent facilitators for the transition to a lowcarbon economy.

SIX RECOMMENDATIONS FOR AN INTEGRATED PLAN FOR THE RENEWABLE ENERGY TRANSITION

Updates on policies and legislation are necessary to stimulate investments – the right mix of legal and regulatory framework will favor a sustained deployment of renewable energy capacities.

At country level, strategic projects must to be defined, prioritized and tackled in the context of significant financing potential of Recovery and Resilience Facility and other EU Funds available Developing a resilient and flexible infrastructure shall be the centerpiece of renewables integration – a high degree of grid stability can smoothen the energy transition.

Adopting new technologies for energy storage, improving energy efficiency and increasing decentralized generation will increase the share of clean energy to be installed.

Specific market mechanisms need to be developed to ensure maximum benefits for participants and to harness the full potential of renewables integration. An agile-based approach can prove successful for achieving Green Deal targets – assessing current state, setting the objectives, tracking progress, receiving feedback from the sector and adapting on the go are the key steps of the transformation process.

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WHAT THE EUROPEAN GREEN DEAL PROVIDES

Climate neutrality has also been defined as a 2050 target for the EU, a desideratum stipulated within the Green Deal framework, a legal commitment which includes a set of initiatives that aims to smoothen Europe’s transition towards a clean, circular economy through efficient use of resources, restauration of biodiversity and cutting pollution in all forms.

By 2030, the European Comission proposed the greenhouse gases reductions to be at least 55% compared with 1990 levels.

One of the main ways through which the European Commission aims to achieve climate neutrality is decarbonizing the energy sector.

Arguably, carbon trading or carbon offsetting/ reduction projects represent short-term solutions to a pressing problem. 75% of the EU’s greenhouse gas emissions come from the production and use of energy across economic sectors.

In order to decarbonise the energy sector and achieve the objectives set out in the agreement, several European financing mechanisms have been put in place. Of these, the main beneficiaries of the Just Transition Mechanism are Poland, Germany and Romania, given the high dependence on fossil fuels for energy consumption. Romania will be able to access up to €4.4 billion as part of this mechanism, which promises to support the transition to lowcarbon energy and also to improve energy infrastructure and create new jobs in the green economy.

GREAT POWERS IN THE FIGHT FOR DECARBONIZATION - CHINA VERSUS THE US

The leading economies of the world in terms of adopting renewable energy are, paradoxically, the largest polluters of the world: China, followed by the United States. China is the world's leading country in electricity from clean energy sources, accounting for 28.7% of global

wind generation and 31.9% of global solar generation. US is the second largest producer from both wind and solar, accounting for 21.7% of global wind generation and 14.7% of global solar generation (2018 data).

In recent years, China has manifested its desire to invest in green energy infrastructure and has shown this commitment by doubling its new renewable capacity in 2020. Nevertheless, energy demand in these two major economies remains highly dependent on fossil fuels.

For the United States, the last four years have been more complicated, marked by Trump’s presidency, a climate change skeptic.

During his mandate, he has withdrawn the United Stated from the Paris Climate Agreement, key legally binding international treaty on climate change and has prioritized economic growth over reduction of CO2 emissions, claiming environmental regulations could harm millions of jobs.

After four years of zero-climate action, American citizens have turned to a very different leader, who has been outspoken about the importance of protecting the environment.

On day 1 of his presidency, Biden rejoined the Paris Climate Agreement, revoked the permit for a new oil pipeline system and vowed to ensure the U.S. achieves a 100% clean energy economy and reaches netzero emissions no later than 2050 and reduce the carbon of US building stock with 50% by 2035.

On April 22, Earth Day, the United States will host a Climate Summit, where the leaders of the majorpolluting nations of the world will discuss about ambitious pledges in terms of decarbonization.

Nevertheless, putting promises into actions, more precisely into legislation and regulations may prove be harder than it seems, with a divided Congress and additionally, the lobbying influence of big fossil fuels corporations. China and the United States will ultimately play the largest role in the global fight against climate change.

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s p e c i a l

s e c t i o n

HYDROGEN Experts believe hydrogen could provide a solution to decarbonize industrial processes and economic sectors where reducing carbon emissions is both urgent and hard to achieve.

Renewable electricity is expected to decarbonize a large share of the EU energy consumption by 2050, but not all of it. Hydrogen has a strong potential to bridge some of this gap.

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THE FUTURE OF HYDROGEN UNDER THE GREEN DEAL AMBITIONS Hydrogen is a central element of the EU plans in meeting the net-zero emissions target by mid-century. It is not the “silver bullet” for the decarbonisation of our energy mix, but it is the energy carrier that we have to invest more heavily.

Hydrogen can be used as a feedstock, a fuel or an energy carrier and storage, and has many possible applications across industry, transport, power and buildings sectors” as the Commission underline on its relevant Communication.

BY MARIA SPYRAKI, MEP (EPP – ND GREECE) However, before we welcome the new hydrogen decade, we have to become very well prepared on the following fundamental aspects, which will finally affect the success of the strategy.

1. Do we have the capacity to produce the quantity of green hydrogen we need in the EU as soon as possible?

According to the Strategy “in the first phase, from 2020 up to 2024, the strategic objective is to install at least 6 GW of renewable hydrogen electrolysers in the EU and the production of up to 1 million tonnes of renewable hydrogen”, and “in a second phase, from 2025 to 2030, hydrogen needs to become an intrinsic part of an integrated energy system with a strategic objective to install at least 40 GW of renewable hydrogen electrolysers by 2030 and the production of up to 10 million tonnes of renewable hydrogen in the EU.” The milestone of 2024 is tomorrow. We have also to be prepared for green hydrogen massive import, particularly

from Africa, which means additional investments in infrastructure.

2. Are we prepared to work with a rea listic approach based on comple men ta rity and transitional technology?

The Council conclusions on December 11th on hydrogen underline that emphasis should be given to hydrogen from renewable sources and that additional renewable energy demand from hydrogen will have to be taken into account in the future deployment of clean power generation capacity. It also acknowledges however, that the role that lowcarbon hydrogen will have in an initial phase to ramp up production in parallel with blue hydrogen made from natural gas with carbon capture technology.

“The European Council acknowledges the need to ensure interconnections, energy security for all Member States, energy at a price that is affordable for households and companies, and to respect the right of the Member States to decide on their energy mix and to choose the most appropriate technologies to achieve collectively the 2030 climate

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target, including transitional technologies such as gas”. The translation of this decision depends on the political will of the governments in the Member States. However, the update of legislation in batteries, focusing on a whole lifecircle approach, the renovation wave of buildings, the sustainable transports and a number of additional EU initiatives consisting the parameters of the European Green Deal, constitute a road map in order to transform not only our economy, but also our life model. In order to achieve this transformation, we need to use all the available instruments complementary and to take into account that big changes are successful since having people on board.

3. Are we ready to Repurpose our infras truc ture before building new ones? Important European Projects of Common Interest are needed.

Our first priority is to include hydrogen as a key part in our energy mix and therefore, we have to provide adequate infrastructure.

Investing now in low-carbon gas infrastructure will help to avoid a lock-in effect into fossil assets that otherwise will become stranded as Europe moves towards net-zero

emissions. Before we start building new infrastructure we have to repurpose the existing gas infrastructure into hydrogen-proper as fast as we can. Earlier this year, a group of eleven European gas infrastructure companies presented plans to create a dedicated “hydrogen backbone” to connect future hydrogen supply and demand centres across Europe. According to those plans, 75% of the network will consist of retrofitted natural gas pipelines, which are gradually expected to become redundant as volumes of natural gas decrease in the future.

4. How can we secure and provide affor dable energy for our citizens without leaving anyone behind?

Under the new ambitions of the Green Deal, we proceed to the revision of the TEN-E regulation. However, we have to be realistic and to bridge the gap between our ambition of not relaying on fossil fuels, in general, and at the same time to provide affordable energy in the market, for our citizens and the industry. In addition, we have to take into account the stability of the system and the security of supply.

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HYDROGEN PAVES THE WAY TO GREEN MOBILITY Hydrogen takes center stage these days in public discourse, with many countries making efforts to use this new technology in order to boost the transition to environmentally-friendly solutions. In transportation, hydrogen seems particularly suited to rail, with the world’s first hydrogen train already in operation. It is produced

by Alstom, one of the global giants in mobility. In an interview with Business Arena, Alstom Managing Director for Romania, Bulgaria and Moldova Gabriel Stanciu talks about the battle for hydrogen, in Romania and other European countries.

BAM STAFF Why is now everybody talking about hydrogen, all of a sudden?

Hydrogen is now the new hot topic and it is definitely on people’s minds now more than ever, but I wouldn’t say it happened suddenly.

It took some time to get to this level of awareness. As the need for sustainable mobility and green solutions accelerated, people have continuously looked for better solutions to produce energy and preserve the environment at the same time. The increased interest in hydrogen and battery rail vehicles is caused by increased electrification costs, the spread of new technologies and restrictions on exhaust gas emissions.

As a result, more and more countries started to introduce new policies to encourage green energy, green transportation. Crucial for the development of the hydrogen market is now the popularization on a large scale of this technology, which will allow for price reduction and wider adoption.

What are the solutions for decarbonization in the rail industry?

Essentially there are three ‘greening’ solutions: the battery (full battery), hybridization

Gabriel Stanciu, Alstom Managing Director for Romania, Bulgaria and Moldova and hydrogen. Each have their own field of application and will contribute to solving the environmental problems of the railways and more generally of mobility. However, although battery technologies have reached a sufficient level of maturity to be deployed in the short and medium term, they do not cover long distances and require a long recharging time.

Two solutions can meet all the needs not covered by the battery: hybridization and

photo: Alstom/ Adrian Sulyok

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photo: Alstom/ Christoph Busse

Austria fully approves hydrogen-powered train Coradia iLint

hydrogen. Hybridization makes it possible to retain the advantages of diesel in terms of range and performance (acceleration, etc.) and to significantly reduce fuel consumption – and therefore CO2 and noise emissions – but it is not a zero emission solution. Hydrogen not only offers a much greater range than the battery, with recharging times equivalent to those of a full tank of traditional fuel, but also makes it possible to envision a zero-emission mode of transport. Hydrogen technologies and solutions will play a key role in our overall vision for the future, it is the answer for a green and smart mobility.

What has Alstom been doing to address the hydrogen transition?

Alstom has a clear ambition: to be the world leader in green and intelligent mobility, as we take environmental concerns very seriously. To that end, Alstom has been a pioneer of sustainable and smart mobility for many years, developing a full portfolio of green mobility solutions, world-first: battery train (Coradia Continental BEMU), hydrogen train (Coradia iLint), innovative electric bus (Aptis).

At this moment, Alstom’s Coradia iLint is the world’s first and only operational passenger hydrogen train. It has a range of 1,000 km after

one filling – that means the train can operate all day long without re-fuelling. Coradia iLint is an answer for the world’s most pressing challenges of today: accelerated urbanization, mobility and climate crisis and decarbonization with green solutions.

What are hydrogen’s main benefits?

Electrification of all railway lines is not economically viable, and traditional diesel trains, similarly to road combustion engines, produce excessive greenhouse gases emissions. So hydrogen trains are the best alternative for non-electrified tracks and regional routes. In time, hydrogen has the potential to fully replace fossil fuels, such as oil and natural gas, which are in limited supply.

There are economic advantages that can’t be ignored, for example the development of green transport and green energy means new investments, which can generate new workplaces.

Hydrogen powered vehicles is not about trains only – buses and trucks are the future of green transport as well – especially if we take into consideration trucks – battery systems are much less efficient due to heavy weight.

Hydrogen may prove to be an interesting alternative to electric batteries. Currently, the main issues concern the high price and battery

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life. Hydrogen may come as a solution – it can be relatively easily stored in tanks and transported when necessary through pipelines or by tank trucks.

How and when can Romania join the hydrogen race?

With increasing interest to push for zero emissions solutions at European level, Romania has shown interest in adopting this technology and there are more and more conferences being organized on this topic. This is definitely a good start – when there’s interest at high level, some action will hopefully follow. Talking about the railway sector, hydrogen is definitely a good choice for Romania’s unelectrified lines and the autonomy range for Alstom’s hydrogen train – up Lower Saxony (Germany) welcomes hydrogen trains to 1,000 km before re-fuelling – makes it very suitable for a variety of railway lines.

Now, Romania needs a clear strategy and clear goals.

For example, France – with half its railway network being unelectrified – expressed the wish to remove all diesel equipment from the fleet by 2035-40. The gradual phaseout of diesel will take place over the lifetime of the trains that will replace the current diesel trains. With has adopted the hydrogen technology most the recent first order of zero-emission trains for recently, with the first order for hydrogenFrance, the country is taking a major step electric trains being announced in April 2021 towards this goal. for four regions. Other European countries have I am sure Romania will work towards a made progress in between: the Netherlands concrete hydrogen strategy – but when we can and Austria have successfully tested the say the country is really ready to adopt Coradia iLint and concluded that it is a fully hydrogen trains remains to be seen. The suitable solution for their unelectrified lines, technology is here right now, it’s not a thing of Italy ordered hydrogen-fuelled trains based on the future. I am an avid promoter of hydrogen the locally-produced Coradia Stream range and I talk about it whenever I have the chance. which is Alstom’s very popular regional train I really hope to see a hydrogen train running in produced especially for Europe. The UK has Romania soon! embarked on an ambitious program to convert What are the countries leading the hydrogen adoption in rail mobility?

Germany was the first to adopt hydrogen in the railway industry. The first hydrogenpowered series trains will enter regular service in Germany from 2022, after two Coradia iLint trains were successfully tested during an 18month run from September 2018 to end of February 2020, covering more than 180,000 kilometres in regular passenger service. France

photo: Alstom/ Anne-Sophie Wittwer

an existing fleet to hydrogen. Alstom’s solutions are at the heart of all these projects, so we can say Alstom is a true pioneer in bringing the hydrogen technology to rail.

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EUROPE OUTLINES STRATEGY FOR SUSTAINABLE TRANSPORT The European Commission presented its ‘Sustainable and Smart Mobility Strategy’ together with an Action Plan of 82 initiatives that will guide its work for the next four years. According to the Commission, this strategy lays the foundation for how the EU transport system can achieve its green and digital transformation and become more resilient to future crises. As outlined in the European Green Deal, the result will be a 90% cut in emissions by 2050, delivered by a smart, competitive, safe, accessible and affordable transport system.

Frans Timmermans, Executive VicePresident for the European Green Deal, said: “To reach our climate targets, emissions from the transport sector must get on a clear downward trend. Today’s strategy will shift the way people and goods move across Europe and make it easy to combine different modes of transport in a single journey. We’ve set ambitious targets for the entire transport system to ensure a sustainable, smart, and resilient return from the COVID-19 crisis.”

In turn, Commissioner for Transport Adina Vălean said: “As the backbone that connects European citizens and business, transport matters to us all. We have no time to lose in getting it fit for the future. Digital technologies have the potential to revolutionise the way we move, making our mobility smarter, more efficient, and also greener. We need to provide businesses a clear pathway for the green investments they will need to make over the coming decades. Through the implementation of this strategy, we will create an irreversible shift to zero-emission mobility while making our transport system more efficient and resilient.”

Milestones for a smart and sustainable future All transport modes need to become more sustainable, with green alternatives widely available and the right incentives put in place to drive the transition. Concrete milestones will keep the European transport system’s journey towards a smart and sustainable future on

track: By 2030: - at least 30 million zero-emission cars will be in operation on European roads - 100 European cities will be climate neutral - high-speed rail traffic will double across Europe - scheduled collective travel for journeys under 500 km should be carbon neutral - automated mobility will be deployed at large scale - zero-emission marine vessels will be marketready By 2035: - zero-emission large aircraft will be marketready By 2050: - nearly all cars, vans, buses as well as new heavy-duty vehicles will be zero-emission.

- rail freight traffic will double.

- a fully operational, multimodal Trans-European Transport Network (TEN-T) for sustainable and smart transport with high speed connectivity.

With transport contributing around 5% to EU GDP and employing more than 10 million people in Europe, the transport system is critical to European businesses and global supply chains.

At the same time, transport is not without costs to society: greenhouse gas and pollutant emissions, noise, road crashes and congestion.

According to the Commission, transport emissions represent around one quarter of the EU’s total GHG emissions.

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AIRBUS ZEROe BLENDED-BODY-WING HYDROGEN AIRCRAFT

AIRBUS PLANS HYDROGEN-POWERED CARBON-NEUTRAL PLANES BY 2035, CAN THEY WORK? Aerospace giant says it must help combat climate change, and hydrogen may be better source of zero-emission energy than batteries Imagine that it is December 2035 – about 15 years from now – and you are taking an international flight in order to be at home with family for the holidays. Airports and planes have not changed much since your childhood: Your flight is late as usual. But the Airbus jet at your gate is different. It is a giant V-shaped blendedwing aircraft, vaguely reminiscent of a boomerang. The taper of the wings is so gentle that one cannot really say where the fuselage ends and the wings begin. The plane is a big lifting body, with room for you and 200 fellow passengers.

One other important thing you notice before you board: The plane is venting vapor, a lot of it, even on a crisp morning. That, you know, is because the plane is fueled by liquid hydrogen, cooled to -253 degrees C, which boils off despite the plane’s extensive insulation. This is part of the vision Airbus, the French-based aviation giant, presents as part of its effort against global climate change.

Airbus is now betting heavily on hydrogen as a fuel of the future. It has just unveiled early plans for three “ZEROe” airliners, each using liquid hydrogen to take the place of today’s hydrocarbon-based jet-fuel compounds.

“It is really our intent in 15 years to have an entry into service of a hydrogen-powered airliner,” says Amanda Simpson, vice president for research and technology at Airbus Americas.

Hydrogen, she says, “has the most energy per

unit mass of…well, anything. And because it burns with oxygen to [yield] water, it is entirely environmentally friendly.”

But is a hydrogen future realistic for commercial aviation? Is it practical from an engineering, environmental, or economic standpoint? Certainly, people at Airbus say they need to decarbonize, and research on battery technology for electric planes has been disappointing. Meanwhile, China, currently the world’s largest producer of carbon dioxide, pledged last month to become carbon neutral by 2060. And 175 countries have signed on to the 2015 Paris agreement to fight global warming.

According to the European Commission, aviation alone accounts for between 2 and 3 percent of the world’s greenhouse gas emissions – about as much as entire countries like Japan or Germany. Two of the planes Airbus has shown in artist renditions would barely get a second glance at today’s airports. One—with a capacity of 120-200 passengers, a cruising speed of about 830 kilometers per hour (kph), and a range of more than 3,500 km—looks like a conventional twin-engine jet. The second looks like almost any other turboprop you’ve ever seen; it’s a shorthaul plane that can carry up to 100 passengers with a range of at least 1,800 km and a cruising speed of 612 kph. Each plane would get electric power from fuel cells. The company said it won’t

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have most other specifications for several years; it said to think of the images as “concepts,” meant to generate ideas for future planes.

The third rendering, an illustration of that blended-wing aircraft, showed some of the potential—and potential challenges—of hydrogen as a fuel. Airbus said the plane might have a cruising speed of 830 kph and a range of 3,500 km, without releasing carbon into the air. Liquid hydrogen contains about three times as much energy in each kilogram as today’s jet fuel. On the other hand, a kilogram of liquid hydrogen takes up three times the space. So, a plane would need either to give up cabin space or have more inside volume. A blended wing, with its bulbous shape, Airbus says, may solve the problem. And as a bonus, blended wings have shown they can be 20 percent more fuel-efficient than today’s tube-and-wing aircraft.

“My first reaction is: Let’s do it. Let’s make it happen,” says Daniel Esposito, a chemical engineer at Columbia University whose research covers hydrogen production. He says hydrogen can be handled safely and has a minimal carbon footprint if it’s made by electrolysis (splitting water into hydrogen and oxygen) using renewable electricity. Most industrial hydrogen today is extracted from natural gas, which negates some of the carbon benefit, but the International Energy Agency says that with

renewable electricity capacity quickly growing (it passed coal as a power source in 2019), the cost of carbon-free hydrogen could drop.

“It can be done,” he says. “It’s just a matter of the political will and the will of companies like Airbus and Boeing to take the lead on this.”

Others have their doubts. “A lot of these things, you can; the question is, should you?” says Richard Pat Anderson, a professor of aerospace engineering at Embry-Riddle Aeronautical University. “When we say, ‘Should you?’ and you get into economics, then it becomes a much more difficult conversation.”

Anderson says battery-powered aircraft are likely to become practical later in this century, and it is a dubious proposition to build the massive – and costly – infrastructure for hydrogen power in the meantime. But in a warming world, Airbus says, the aviation sector needs to get going. McKinsey & Company, the consulting firm, surveyed airline customers last year and found 62 percent of younger fliers (under age 35) “really worried about climate change” and agreed that “aviation should definitely become carbon neutral.”

So, you’re on that jetway 15 years from now, on the way home. What will power the plane you’re boarding?

“Hydrogen is coming,” says Simpson at Airbus. “It’s already here.”

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NVIDIA'S NEW GRACE CPU IS DESIGNED FOR AI-POWERED SUPERCOMPUTERS Nvidia's newest Central Processing Unit (CPU) has been unveiled, and it's quite a chip: offering a 10x performance leap over current solutions, it's focused on artificial intelligence calculations and natural language processing (NLP).

The CPU is called Grace, after US computer programming pioneer Grace Hopper, and it's destined for high-end data centers and supercomputers rather than the average desktop. Nvidia says it will be running supercomputers at the Swiss National Supercomputing Centre (CSCS) and the Los Alamos National Laboratory in the US in the coming years.

Built to analyze huge datasets and process information at super-fast speeds, the Grace CPU is based on Arm architecture, following Nvidia's acquisition of chipset designer Arm last year. The chip will work in tandem with Nvidia graphics processing units (GPUs) and will start appearing in machines in 2023.

The Grace CPU is going to be particularly adept at handling deep-learning models, where vast amounts of data need to be crunched and compared to train AI's to make the right decisions more of the time – whether that's recognizing your voice when you talk to your smart speaker or helping a self-driving car learn what a traffic light looks like.

It's another shot across the bows of Intel, which develops the Xeon chip for the same kind of data center use cases that Grace is now targeting. Apple recently switched its

computers to its own custom chips rather than Intel silicon, and this could be another area where Intel starts to lose market share.

And it's a hugely profitable market, too – the need for cloud computing centers is growing and growing, as is the demand for AI-powered systems that businesses and scientists can tap into. "NVIDIA's novel Grace CPU allows us to converge AI technologies and classic supercomputing for solving some of the hardest problems in computational science," said CSCS Director Professor Thomas Schulthess in a press statement. "We are excited to make the new Nvidia CPU available for our users in Switzerland and globally for processing and analyzing massive and complex scientific datasets."

According to Nvidia, the combination of the Grace CPU with Nvidia's latest GPUs is going to achieve a 30x higher aggregate bandwidth compared with the best servers today – so that's a lot more data that can be shifted at once. Energy efficiency should improve too.

While you won't be ordering the Grace CPU for your next self-built PC, you may well benefit from it in the coming years, as it finds a place in more data centers and more powerful supercomputers across the world.

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TOP BRAND Luxury maintains its trendsetting status and aspirational image with consumers. At the same time, the industry's evolution and rapid growth generates a democratization of luxury.

The democratization of luxury can be seen in two ways: one in which luxury goods feel more attainable to a larger population, and another in which luxury brands have more accessible channels with which to reach new customers.

In spite of recent difficulties, market experts show an enduring optimism about the industry’s resilience. The current hurdles are seen as an opportunity for businesses to re-invent themselves and adapt to a changing world.

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ON THE ROAD:

JAGUAR’S 2021 F-TYPE R COUPE HAS ITS CLAWS OUT FOR THE COMPETITION The 575 hp model may not be the feral cat it once was, but it’s still wildly fun to drive.

I was privileged to attend the international press launch of the Jaguar F-Type in 2013, driving Jag’s new sports car on the idyllic roads of northern Spain. I remember thinking at the time that Jaguar was back in the game, and that the F-Type Coupe was the most beautiful Jag since Malcom Sayer’s iconic XK-E. For Jaguar, the E-Type, especially the Series

I made from 1961 through 1967, was a landmark design that remains a cornerstone in many classic collections. And while the marque followed up with the XJS, XK8 and XK, those models were really luxury GTs that never quite assumed the sporting role left vacant when the last V-12-powered E-Type rolled off the line in 1974. Ian Callum’s design for the FType, however, ticked all the boxes, as they say. It performed brilliantly, looked great, and still gets my vote as one of the most desirable “affordable” sports cars on the market.

o when Jaguar offered us their latest 2021 F-Type R AWD Coupe, I wondered if familiarity with earlier F-Types would somehow dull the excitement, especially by way of comparison to recent front-engined competitors like Aston Martin’s Vantage, Chevrolet’s latest Corvette or even Ford’s Mustang GT. The answer is a resounding “no.”

The F-Type received a facelift for the 2021 model year, discernable at a glance by the new headlamps and taillights.

Three models of coupe and convertible are available in North America, powered either by an inline-four, a V-6 or a V-8 engine. The top-performing F-Type has a 5.0-liter, supercharged V-8 that develops 575 hp, gets from zero to 60 mph in 3.5 seconds and has an electronically limited top speed of 186 mph. The engine is a proven winner, and its healthy 516 ft lbs of torque pulls all the way from 3,500 rpm. The eight-speed automatic gearbox spreads out the ratios, tipping a hat to acceleration but with long legs for freeway flying at lesser rpms.

A little history places this latest F-Type in context. Made until 2015, the earlier RWDonly, V-8-powered F-Type R Coupe was a brutal cat with a rabid, howling exhaust and traditional rear-wheel-drive traits that had the back end stepping out at the blink of an inattentive eye. That car was a bucket of fun— definitely not for the squeamish—and is one of the best pure sports-car bargains on the pre-

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A CENTER-POSITIONED 10-INCH TOUCHSCREEN MANAGES INFOTAINMENT. owned market. All subsequent V-8 F-Types have been solely all-wheel drive, taming the road manners of the formerly feral cat, and making it a car more attuned to a broader range of buyers. For drivers who like to get a little sideways, the latest F-Type still offers plenty of THE 3,843-POUND F-TYPE R COUPE COMPRISES controlled-drift excitement, but AN ALL-ALUMINUM UNIBODY CHASSIS without the voice or short WITH ALUMINUM BODY PANELS. temper of its predecessor.

The double-wishbone front and rear suspension setup, with adaptive dampers and adjustable settings, offers a ride that is compliant and comfortable over long distances, though the 20-inch wheel and tire combination telegraph freeway expansion joints when dialed to the sport setting. The electric power-assisted stethe small but beautifully shaped backlight, one ering responds to quick inputs and provides of the car’s signature design elements. welcome feedback, especially on curvy roads Retractable door handles are another that offer a sporting challenge and the elegant and aerodynamic consideration, opportunity to enjoy the steering wheel– remaining flush with the bodywork once the mounted paddles. car is underway. By that time, the driver and With the latter, the otherwise silky-smooth passenger are inside, ensconced in the suede transmission provides assertive shifts to cloth performance seats, some of the most deliver impressive acceleration. Stopping comfortable in the business. power is adequate but, ideally, carbon-ceramic With plenty of power, and as exciting to brakes should have been an available option drive as it is beautiful to look at, the strictly for drivers who plan to put the Jag through its two-seat F-Type R fills its price-point niche very paces. nicely, as most competition is positioned well The F-Type’s all-aluminum unibody chassis over or under its base price of $103,200. Our architecture keeps weight to 3,843 pounds, metallic Bluefire Blue example, optioned at and use of aluminum for body panels allows $113,190—was just about loaded, although precise lines and creases impossible to Jaguar offers some costlier paint options in a execute in steel. The retractable rear wing elewide array of colors that make this well-bred vates at 70 mph, its presence visible through cat even more exclusive.

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§ɐɌɐǶ ǶɐǞ ðƊǿ˛Ȳ‫ ة‬ȁȲ ‫ ة׀׆‬ȺƵƧɈȌȲ ׁ‫ ة‬ §ɐɌɐǶ ǶɐǞ ðƊǿ˛Ȳ‫ ة‬ȁȲ ‫ ة׀׆‬ȺƵƧɈȌȲ ׁ‫ ة‬ɐ ɐƧɐȲƵɂɈǞ ƧɐȲƵɂɈǞ ɩɩ‫خ‬ƧǘȌƧȌٌǶƊȁƮ‫خ‬ȲȌ ɩ ɩɩɩ‫خ‬ƧǘȌƧȌٌǶƊȁƮ‫خ‬ȲȌ Ƨ ƧȌǿƵȁɹǞ‫ۊ‬ƧǘȌƧȌٌǶƊȁƮ‫خ‬ȲȌ ȌǿƵȁɹǞ‫ۊ‬ƧǘȌƧȌٌǶƊȁƮ‫خ‬ȲȌ ‫׉׀׀خׁ׀ׂخ׉ׇׂخ׀ׄڕ‬ ‫׉׀׀خׁ׀ׂخ׉ׇׂخ׀ׄڕ‬

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LEXUS UNVEILED ON A REMARKABLE CONCEPT VEHICLE, MEANT TO SUGGEST THE DESIGN AND TECHNOLOGY THAT WILL COME IN THE CARMAKER'S SHOWROOMS AROUND 2025 The concept is called the LF-Z Electrified, and it's a battery-electric vehicle whose design can best be described as a blend of a sedan and crossover.

After dragging its feet for while, Lexus is now committed to adding more EVs to its lineup (it already sells an electric UX crossover overseas). By 2025, it will introduce 20 new or updated vehicles encompassing hybrids, plugin hybrids, battery-electric vehicles, and "other electric vehicles" globally, and something along the lines of the LF-Z Electrified may be one of them. The automaker also said that every model it sells by this date will have an electric option. One element that the LF-Z Electrified concept addresses is the future evolution of Lexus' spindle grille that today defines the look of the automaker's vehicles. Electric vehicles don't require huge openings at the front so Lexus has decided to rethink how it can use its brand-defining grille as it prepares to roll out EVs. On the LF-Z Electrified, the spindle grille has morphed into the front fascia. It's a look Lexus previously hinted at with its more radical LF-30 Electrified concept unveiled in 2019, and we'll see a variation of it in showrooms as early as this year. Lexus has confirmed the reveal of two new models in 2021 and at least one of them will feature styling influenced by the new design theme of the LF-Z Electrified. One of the models is expected to be a large crossover SUV similar to 2018's LF-1 Limitless concept. The other is most likely the redesigned NX that we recently saw. Lexus is quiet on powertrain details for the LF-Z Electrified but we know the concept features a flat battery in the floor and an all-wheel-drive system with highly precise torque vectoring made possible via the use of

an electric motor (or motors) at each axle.

Called Direct4, this all-wheel-drive system is to become a staple of future EVs (and hybrids) from Lexus. Inside the concept, there's a minimalist dash that includes a head-up display and

touchscreen, as well as an airplane-style yoke instead of a traditional steering wheel. It's a design that will appear shortly in Tesla's Model S and Model X, though we doubt Lexus will pick it for a production model. The LF-Z Electrified concept also features an artificial-intelligence voice assistant for certain functions, and a digital-key system allows access to the vehicle using a smartphone.

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BUSINESS ARENA - 101st ISSUE

INNOVATION

LAMBORGHINI SC20:

THE UNIQUE OPEN-TOP TRACK CAR

BY SQUADRA CORSE Unique open-top model with V12 engine by Lamborghini Squadra Corse Carbon fiber body featuring racing aerodynamics Innovative design by Lamborghini Centro Stile Lamborghini Squadra Corse presents the SC20, a unique specimen of an open-top track car type-approved for road use. The SC20 is the second one-off engineered by the motorsport department and designed by Centro Stile in Sant’Agata Bolognese: the car was created following the customer’s wishes, who was involved in the project from the very first drawings by Lamborghini’s designers.

The common goal was to build a unique vehicle, extreme in its design and performance, and able to combine aerodynamic solutions taken from racing Lamborghinis incorporating unprecedented lines and exclusive details. “Two years

after the SC18 Alston, the SC20 was a new, intriguing challenge. The chief sources of inspiration were the Diablo VT Roadster, Aventador J, Veneno Roadster and Concept S, and the result is a dramatic combination of creativity and racing attitude,” commented Mitja Borkert, Head of Design Lamborghini Centro Stile.

The carbon fiber body was polished and slicked down by hand by the Lamborghini aerodynamic engineers to deliver optimal airflow for both performance and the cockpit’s occupants, ensuring comfortable open-air driving even at high speeds. The pronounced front splitter is framed by two fins and the air intakes on the front

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hood are inspired by those of the Huracán GT3 EVO, while the sculpted body sides reflect the solutions adopted on the Essenza SCV12. The muscular rear is topped by a large carbon fiber wing that can be set in three different positions: Low, Medium and High Load.

The SC20 features exclusive details starting from the body colors on a Bianco Fu (white) base, created for the customer, on which the Blu Cepheus (blue) livery stands out. The same shade is found in the interior, alternating with Nero Cosmus (black) and Bianco Leda (white). The most significant element of the passenger compartment is the visible carbon fiber used for the dashboard cover, rear wall, door panels, center console and steering wheel trim, in addition to the monocoque. Carbon fiber is also used for the shells of the seats upholstered in Alcantara and leather. The door handles on the other hand, are machined from solid aluminum.

Lastly, the air vents are created using 3D printing technology at the Sant’Agata Bolognese factory.

Maurizio Reggiani, Chief Technical Officer of Automobili Lamborghini, stated, “The SC20 is a

combination of sophisticated engineering, Italian craftsmanship, sportiness and advanced design. It is also an example of applying our V12 engine and carbon fiber to a radical open-top vehicle that unmistakably carries the Lamborghini DNA.” Its engine is based on Lamborghini’s flagship V12: the 6,498 cm3 aspirated twelve-cylinder that delivers 770 CV at 8,500 rpm and develops 720 Nm of torque at 6,750 rpm. It is managed through the optimized seven-speed Independent Shifting Rod (ISR) gearbox. The power is discharged to the ground by the four-wheel drive system with central electronic differential, and the Pirelli PZero Corsa tires are mounted on single-nut aluminum rims, 20 inches in front and 21 inches at the rear.

Giorgio Sanna, Head of Lamborghini Motorsport, commented, “The SC20 is one more technical and styling exercise that associates Squadra Corse experience with Lamborghini design, masterfully interpreted by our Centro Stile based on the customer’s wishes, which was the focus of the project during the entire vehicle development and construction process.”

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BUSINESS ARENA - 101st ISSUE

THE NEW LAMBORGHINI HURACÁN STO COMES TO LAMBORGHINI BUCHAREST SHOWROOM Inspired by the adrenaline of the racetrack. Designed to dominate the road Motorsport performance transferred to a road-homologated car V10 naturally aspirated engine, 640 hp (470 kW), maximum torque of 565 Nm Acceleration from 0 to 100 km/h in 3.0 seconds, and a top speed of 310km/h Lamborghini Bucharest presents the new Lamborghini Huracán STO (Super Trofeo Omologata) to the Romanian clients: a roadhomologated super sports car inspired by the racing heritage of Lamborghini Squadra Corse’s one-make race series with Huracán Super Trofeo EVO, as well as the 24 Hours of Daytona-winning and 12 Hours of Sebring-winning Huracán GT3 EVO. With its V10 naturally aspirated 640 hp (470 kW) power plant producing 565 Nm at 6,500 rpm, the rear-wheel drive Huracán STO delivers exhilarating acceleration of 0-100 km/h in 3.0 seconds, 0200 km/h in 9.0 seconds and a top speed of 310 km/h.

Behind the extraordinary performance of the new Huracán STO there are numerous innovative technical solutions.

COFANGO, a “Made in Lamborghini” design solution, is one of them. The term Cofango derives from the fusion of two Italian words: cofano (hood) and parafango (fender), coined by Automobili Lamborghini to describe the design solution in which the hood, fenders and front bumper are integrated into a single component. This innovative system created

by Lamborghini engineers is inspired by

the Lamborghini Miura and the more recent Sesto Elemento, and on the STO is made entirely of very light carbon fiber.

Actually, over 75% of Huracán STO’s body

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is made in carbon fiber, the windshield is lightweight, wheels are made of magnesium, and the lightweight interior is inspired by racing, therefore making this model 43% lighter than the Huracán Performante.

“We used our expertise to take on the hardest challenge: engineering a car that as a lightweight focus within every aspect, so that it can be fast on every track”, said Maurizio Reggiani, Chief Technical Officer at Automobili Lamborghini.

The key for opening the fastenings on the STO’s Cofango is unique: it was developed inhouse by the R&D team and made using an innovative 3D printing

technique.

“When we talk about aeroperformance, downforce is key. But in a race, it is drag optimization and cooling that make the difference!”, explains Andrea Caldarelli, Lamborghini Factory driver and winner at Daytona 24 Hour. “All of that to maximize the cornering speed and maintain optimal performance.”

Therefore, Huracán STO has +37% in aerodynamic efficiency compared to the Huracán Performante and a

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downforce of 420 kg at 280 km / h. The Huracán STO offers three new driving modes, adaptiong car settings to perfectly match driving environments and driving styles: STO (for normal road driving, focused on the fun of driving), Trofeo (racing mode, focused on maximizing track performance) and Pioggia (rain mode that puts an accent on maximum grip and control).

“We used our vehicle dynamic technologies to make the Huracán STO adjustable to the different characteristics of the track and easy to setup”, says Giorgio Sanna, Head of Squadra Corse.

Therefore, the setup of the Huracán STO can be changed a record time of just 3 seconds, allowing the driver to experience a dynamic pit stop, as if a team of mechanics were right there!

Lamborghini’s R&D team drove a distance equivalent to three times around the world in simulator tests before starting the Huracán STO’s road tests. Stateof-the-art simulator technology allowed Lamborghini engineers to save time on quality control, lead times, and emissions by verifying that every part of the car fully complied with standards during different stages of the STO’s development, certifying and testing.

The Huracán STO is equipped with an advanced connected telemetry system never seen before on a Lamborghini.

The entire system connects the car, the cameras and the UNICA application (dedicated to Lamborghini customers).

New widgets create 100% race-oriented graphics and driving experience.

The development of this technology on the Lamborghini UNICA App required more than 25,000 lines of code.

Huracán STO offers infinite customization possibilities, through the AdPersonam configuration and personalization service and the recommended starting price for this model in Romania (excluding VAT) is 252,000 Euro.

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BUSINESS ARENA - 101st ISSUE

MOTORBIKES

A UNIQUE PROJECT IS BORN:

DUCATI DIAVEL 1260 LAMBORGHINI, INSPIRED

BY THE SIÁN FKP 37

Automobili Lamborghini and Ducati announce the Ducati Diavel 1260 Lamborghini: born from the collaboration between two prestigious brands, the motorcycle is made in a limited and numbered edition of 630 units, celebrating the cooperation between the two organisations and appealing to both motorcyclists and collectors from all over the world.

Ducati and Lamborghini both represent Italian excellence, sharing values such as sportiness, attention to design and a meticulous

devotion to detail. From this common ground, the Ducati designers’ inspiration for the special project came from one of the Sant’Agata Bolognese company’s most fascinating models: the Lamborghini Sián FKP 37.

Based on the Diavel 1260 S, the concept of the Diavel Lamborghini transfers the core concepts of the Sián FKP 37 to the motorcycle world, redesigning the components that most characterize the Diavel. The new, lightweight forged wheels explicitly recall those of the car, as do the air intakes and radiator covers made

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of carbon fibre that suggest superimposed floating elements on the main structure of the bike. Finally, the typical Ducati red is referenced by the colouring of the Brembo brake calipers.

Each detail of the bike, redesigned by the Centro Stile Ducati for this specific project, is made of a light and precious material such as carbon fibre, also inspired by the car. In addition to the radiator covers and air intakes, the silencer cover, spoiler, central tank cover, seat cover, front and rear mudguards,

dashboard cover and headlight frame are also made of carbon.

“We are convinced that our design is strong and one of the most recognizable in the automotive sector,” says Mitja Borkert, Head of Design of Automobili Lamborghini. “The unique silhouette, clean but extremely distinguished, defines the base of our design language. Our visionary design approach allows us to transfer our DNA to other products: this was achieved through strong teamwork, sharing our style and the advantage of being two brands inspired by the same values and a commitment to ‘fun to drive’ .

“The Ducati Diavel inspired by the Lamborghini Sián celebrates our shared values: we are both Italian, we are inherently

sporty and our design always distinguishes our creations,” says Andrea Ferraresi, Director of Ducati Centro Stile. “The Diavel 1260 Lamborghini has been created by using the same design language that distinguishes the Sián FKP 37.”

The livery of the Diavel 1260 Lamborghini is the result of the collaboration between the Centro Stile Ducati and Centro Stile Lamborghini. The paints applied to the bike are the same as those used for the Sián FKP 37, with the bodywork characterized by the Verde (Green) Gea colour, while the frame, undertray and forged rims are embellished with the Oro (Gold) Electrum colour. The important Lamborghini design elements of the hexagon and ‘Y’ motif are evident: this special version of the Diavel pays

homage to the former in the shape of the exhaust and the latter in the seat’s aesthetic details.

The livery of this Diavel also sports a ‘63’: an important number for the Sant’Agata Bolognese company that was founded in 1963, and the number that multiplied by ten arrives at the 630 numbered units to be produce by Ducati.

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BUSINESS ARENA - 101st ISSUE

MEN'S FASHION

HOW TO BE WELL DRESSED ON EASTER OUTFIT: TRENDS BY ADINA BUZATU PHOTOS BY VALI BARBULESCU

Easter is a strongly religious holiday and it requires an adequate clothing style approach. When choosing your outfits for this day you must keep in mind both the religious connotation of the event and the changing spring weather. Basically, on Easter you are going to wear something special, an outfit that you wouldn’t normally think of for a regular day, and this involves taking some fashion risks. That’s the main reason why I’ve decided to speak about the way you can create your Easter outfit, what items you should choose and how to select the colors according to the season, in order to be noticed for your nice style.

SMART CASUAL WITH ATTITUDE No matter if you’re spending Easter at home, with your family, in the mountains, or at the seaside, your outfit should reflect your personality and the occasion you’re celebrating.

This holiday speaks about light, life, eternity, and joy, and you must show this through the clothes you’re wearing. You should choose colors like pastels and fresh shades which reflect not only the joy of life but also the rebirth of nature in spring. Celebrating during daytime requires layered smart casual outfits, which you can adapt if the weather is changing, but also cover the visual aspect through its interesting, apparently complicated construction.

CLASSIC VS. DARING It’s more than obvious that the classic style equation is made of a shirt, vest, and coat. You can play with colors and prints. Since Easter is associated with pastels, which give you a pleasant feeling of joy and happiness, you should use them in your outfit. For instance, you can wear a shirt in a dusty shade of lilac, light blue, yellow, or pink. Deep colors are the perfect option to make a statement. You can opt for a single item in a deep shade of purple, orange, or teal and keep the rest of the outfit neutral. My advice for you is to avoid wearing

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red, which is too aggressive for spring and Easter. At the same time, red is the symbol of painted eggs and an outfit including this shade would be too tautological.

If you prefer a more relaxed outfit that will still have a festive echo, mix and match a formal shirt with a sport jacket and a pair of dark jeans or chinos. Bet on neutrals for a refined look. Using a shirt in a strong print next to your solid neutrals will make a statement of style and personality. Bet on neutrals that go well with everything, like white, black, beige, ivory, shades of brown, grey, dark blue, or khaki.

For example, if you go to the seaside for Easter, you can wear a shirt with a colorful print such as flowers, birds, urban elements, mixed with a khaki blazer and light beige chinos. The simplicity of the neutral items will balance the dynamic print but will still emphasize it and put the focus on it.

POWERFUL ACCESSORIES If you are invited to a garden party, in the open, you can take advantage of the charm of spring accessories, like a pair of cool sunglasses or a nice hat.

In terms of shoes, go for classics like Oxford or Brogues. You can choose a Wingtip version which will emphasize the elegance of your outfit. For a fancy

dinner, you can add a pocket square, in a shade or print contrasting with the shade of your coat, in order to add a touch of personality to your entire ensemble.

The golden rule is to opt for good quality classic shoes. And even if you celebrate Easter at the seaside or in a relaxed environment, you should avoid wearing sneakers or any type of sport shoes because they are way too casual for this kind of holiday.

The list of the best accessories for such an occasion wouldn’t be complete without a good classic watch, which shows maturity or a bow-tie. If you decide to wear a bow tie, make sure that your outfit is not too formal.

If you are the conservative type but still want to make a statement, you can use only one accessory in a contrasting color or print, like a pair of colorful socks or a bold bow tie.

Be creative, mix and match in style, and don’t be afraid to use daring elements which highlight a simple outfit.

Take only risks that you can control and keep in mind the rules of matching colors and mixing clothing items. This way you’ll be well dressed on Easter!

We are waiting for you in our TRENDS by Adina Buzatu shop in Baneasa Shopping City, Road Bucharest-Ploiesti no. 42 D, ground floor and on www.adinabuzatu.ro

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BUSINESS ARENA - 101st ISSUE

LUXURY WATCHES

JAEGER-LECOULTRE MASTER GRANDE TRADITION GRANDE COMPLICATION

Highlighting its expertise in chiming watches, Jaeger-LeCoultre reinterprets its Master Grande Tradition Grande Complication with a magnificent new design.

The new Master Grande Tradition Grande Complication harnesses more than a century and a half of accumulated expertise. This masterpiece of mechanical engineering incorporates two of the most romantic yet technically challenging complications in horology: a minute repeater and a celestial vault. The complex mechanism is further elevated by an orbital flying tourbillon. This limited edition of eight pieces each in rose gold and in white gold features a new aesthetic that reaffirms JaegerLeCoultre’s mastery of the artistic crafts. Over the past 150 years, minute repeaters have had a major presence in Jaeger-LeCoultre’s portfolio of complicated timepieces. La Grande Maison’s mastery of chiming watches is confirmed by more than 200 calibres, including some 100 minute repeaters made before the year 1900.

The new Master Grande Tradition Grande Complication embodies Jaeger-LeCoultre’s mastery of astronomical complications in its celestial vault complication, which defines the dial of the watch. Jaeger-LeCoultre first brought together the technical innovations of its new

generation minute repeaters with an astronomical display in the original Master Grande Tradition Grande Complication of 2010. That watch also introduced the Orbital Flying Tourbillon, integrating it into the mechanism as a regulating device.

A golden sun-shaped pointer set at the edge of the disc of constellations indicates the date, the month, and the signs of the Zodiac, as well as the 24-hour scale that is marked on the inner flange of the dial.

A multiple-level dial amplifies the beauty of the celestial theme while also showcasing the orbiting tourbillon. On the deepest level of the dial, a midnight blue or black disc — depending on the model— is decorated with tiny stars. Above it, a delicate laser-welded filigree forms a dome, its structure echoing the pattern of the constellations marked on the convex celestial disc.

The manual wound JLC calibre 945 with 52 jewels provides a power reserve of 40 hours when fully wound. The watch is water-resistant to 50 meters and available in a limited edition of 8 pieces for each model

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AUGUSTIN WATCHES:

Time becomes art Augustin Matei

Augustin Matei deserves to be famous, as he is an endangered species: an artisan.

The idea is simple: you come with your wish or desire and he turns it into a watch.

The limit can only be the availability of components, because for his imagination – the sky is the limit. And one more thing - it's affordable...

DA VINCI Automatic movement skeleton watch, dedicated to Leonardo da Vinci's genius, with silver and micropainting volume elements.

CENTURION Watch for history lovers, with microsculpture in silver. Swiss-made automatic mechanism, 44 mm case diameter.

Alligator leather strap.

SAILING CHRONOGRAPH Eta 7750 valjoux watch movement, silver dial, manufactured using micro-painting techniques.

ATLANTIS Poseidon is featured in the foreground, handcrafted using engraving techniques.

Hand-painted dial.

ETA 2824-2 automatic movement.

ASCLEPIUS, THE GREEK GOD OF MEDICINE Engraved silver dial.

43.5 mm diameter case, ETA 2828-2 caliber automatic movement.

Lizard leather strap.

AFRICA Handmade watch using micropainting techniques, with silver elements and ground coffee. Caliber Swiss-made ETA 2824-2 automatic, 43.5 mm case, sapphire glass.

Exotic iguana leather strap. Chronograph watch, 42 mm diameter,

IBERIAN WOLF Silver dial with artistic elements.

Handmade watch using engraving and micropainting techniques, with an automatic skeleton mechanism.

44 mm diameter case.

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BUSINESS ARENA - 101st ISSUE

LUXURY WATCHES

DW5 CEMPASÚCHIL

A ONE-OFF CREATION FOR THE MAESTRI’ART COLLECTION As every year in Mexico on the Day of the Dead, the Cempasúchil blossom sings the joy of an enduring celebration.

A conversation that spans two eras, between two exceptional art engravers. The first is José Guadalupe Posada, the legendary Mexican engraver and chisel virtuoso who made the dead dance at the end of the 19th century.

His work is interpreted with the contemporary talent of Swiss Art engraver Michèle Rothen, working in close concert with Denis Flageollet, master watchmaker and founder of De Bethune.

Between life and death, tequila shots and religious syncretism where practices and beliefs happily merge on a day that has become part of the Intangible Cultural Heritage of Humanity.

Welcome to Mexico, where cemeteries are transformed into dance floors, tombs into tabletops, altars into sumptuous buffets, all blanketed with delicate blossoms of the Cempasúchil (the marigold also called La Flor de los Muertos – the flower of the dead) under the benevolent gaze of La Catrina.

A tribute to the towering work of Posada There have been and are many watches on the subject of skulls and the Day of the Dead, but none of them inspired by the engraving of Mexican artist José Guadalupe Posada. With the DW5 Cempasúchil, Denis Flageollet, master watchmaker and founder of De Bethune, establishes a dialogue between his friend, kindred spirit and longtime collaborator, the talented Swiss Art engraver Michèle Rothen, and the renowned Mexican engraver of the last century.

Posada (1852-1913). Engraving genius. His drawings have conquered eternity. Though he passed away in general indifference, he has since never ceased to be rediscovered beyond Mexico, where his work has become part of the national heritage, especially since the centenary of his death in 2013. The engraver of calaveras (‘skulls’

in Spanish) offers images of skeletons more alive than the living.

A watch that speaks of joy, as much as it does of precision and complications Under the pencil stroke of Denis Flageollet and Michèle Rothen, the case of the DW5 Cempasúchil provides a unique spectacle. Where Posada etched his calaveras on flat zinc plates, Denis Flageollet and Michèle Rothen miniaturize them to the extreme, only to give them more relief and volume.

On the outside of the timepiece, the watchmaker gives us the phantasmagorical world inspired by the discovery, on a trip across the Atlantic, of an old engraving that depicted a joyful rendering by Posada. On the inside, the real world of watchmaking precision and engineering.

The watch bears witness to a vision of unbridled elation as that expressed by and on the EL Día de los Muertos, yet founded on a deep understanding and respect of the great watchmaking masters of the past, which it transcends and sublimates. Through this unique creation, as a bridge between the worlds of art and watchmaking, De Bethune sets a marker between the realms of life and death. The DW5 Cempasúchil transforms know-how into emotion and technique into pure beauty. For De Bethune, the approach applies just as well to art as it does to watchmaking. The DW5 Cempasúchil belongs

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to both worlds. It speaks of joy as genuinely as it does of precision and complications.

The alliance of blued titanium and gold A new technology for combining the two metals Reaching beyond the challenge of a contemporary reinterpretation of the Mexican artist's engravings, Denis Flageollet and Michèle Rothen introduce the additional technical challenges of not only working with a titanium case, but also of having it flame-blued, handengraved, and decorated for the first time with delicate gold inserts, as well as engraved to magnify the Cempasúchil blossoms. And to take the level of difficulty a few notches higher still, several different types of 18K gold alloy are used.

White gold, yellow gold, rose gold, green gold (an 18K gold com-

bined with a smidgeon of silver), and a new ‘marbled’ gold (a blend of white gold, rose gold and yellow gold): Denis Flageollet’s unrivalled know- how is given free rein at De Bethune’s own foundry in Sainte Croix, enabling him to create new shades of the precious metal to underline the piece’s floral elements. Thanks to a new technique developed in his workshop, the metals seem to naturally harmonize and join together. The multiple levels and shades of the decoration offer a magnificent and subtle visual depth accentuated by the engraved parts.

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LUXURY WATCHES

A HOROLOGICAL MILESTONE The Mirrored Force Resonance is the first watch in the collection to leverage Claude Greisler's milestone achievement, which harnessed the "Resonance Phenomenon" in a completely new way.

The Mirrored Force Resonance's differentiated ability to consistently maintain a state of resonance represents nothing less than a redefinition of the practical limits for horological precision in a wristwatch.

This watch is characterized by a novel resonating dual regulator designed for maximum chronometric precision; one that also provides a mesmerizing visual pulsation effect on the dial-side of the watch.

Resonance watches are so rare precisely because they are so extraordinarily difficult to design and produce, as they essentially require two watch movements to be combined into one unit that utilizes two independent mainsprings, gear trains, escapements, and balances. A resonance watch requires its two balance wheels find a concurrent rhythm so as to continuously regulate one another. The

follow-on challenge is to consistently maintain oscillation-rate stability; in order to enlist the resonance phenomenon to the cause of chronometric precision. This challenge has historically eluded even the greatest of watchmakers, as the fragility of the phenomenon makes it extraordinarily difficult to consistently maintain with resiliency to disruption; particularly in the context of a human wrist that is both continously engaged in unpredictable motion and which often 'bumps into things'.

SUSTAINING A CONSISTENT RESONANCE STATE: A SOLUTION TO THE 200-YEAR OLD PROBLEM

The pursuit of a consistent state of resonance is what ultimately led Claude Greisler to

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conclude that Abraham-Louis Breguet's approach, which achieves resonance via precise balance-wheel proximity, was of little actual utility in the context of his precision-oriented horological ambitions. Greisler's goal was to harness the resonance phenomenon in a wristwatch with sufficient consistency to enable his wristwatch to operate with marinechronometer precision, despite the everchanging positions of the human wrist. Marine Chronometer accuracy targets consistency as its sole goal; meaning that it must gain or lose precisely the same number of seconds every single day without variation. Contrast this with the variable plus/minus approach for a standard wristwatch and the difference becomes exceedingly clear. It would require two balance wheels to dynamically regulate each other on a consistent basis in order for Greisler's ambition to be achieved.

In the end, Greisler's solution would require a return to first principles and a deep exploration of the resonance theories of Christiaan Huygens (the father of mathematical physics

and the inventor of the pendulum clock; who had died over 50 years before Breguet was even born). In keeping with his desire to restrict his solution to the same materials that his watchmaker-grandfather could have used, Greisler's developed his "Huygens Resonance Clutch Spring" in steel. He spent three years perfecting its shape and characteristics: recalculating, optimizing, simulating, testing, retesting and achieving incremental improvements until the 'Huygens Clutch Spring' had developed into its current form. This patented clutch spring design maintains an optimal a state of resonance by synchronizing two sets of oscillators (comprising twin balance wheels and balance springs) in what Huygens described as a state of 'odd sympathy' (oscillating in perfect consonance but in opposite directions, while synchronized in anti-phase).

Manual, 48 hours Power reserve, off-centre time indications / Frequency: 25,200 vph Number of jewels: 43/ Number of individual parts: 226 Price from 54'000 CHF

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LUXURY WATCHES

HAUTE HOROLOGY FROM A FEMININE PERSPECTIVE The Lady Beat features an off-center dial and slimmer case with a much smaller diameter than other watches in the collection.

A highlight of the front of the watch is the visible triplet of bridges echoing the pocket watch inspiration behind Caliber ALA20, just one of many mechanical elements visible on the dial. A crescent-shaped plate that shares the lower part of the watch with the

mechanical elements, with a full moon-shaped small second at the top. The 38 mm case diameter of Lady Beat is a first at Armin Strom, conforming to the sizing "sweet spot" that conforms to modern fashion sensibilities.

The Lady Beat is the very first model created specifically for women by the Armin Strom Manufacture. It is available in a stainless-steel or 18k Rose Gold case, with or

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Finally, a no-compromise haute-horology watch designed for a feminine sensibility.

Co-designed with women, for women who share our passion for transparent mechanics, hand-finished movement decoration and engineering excellence. without diamonds; with pricing starting at CHF 16,900.

Calibre ALA20 ARMIN STROM calibre ALA20 Automatic, 70-hours power reserve, offcentre time indications Frequency: 25'200 A/h Jewels: 20 Number of components: 185 Cas: Stainless steel, with optional 18k rose

gold and diamond options Sapphire crystal and case back with antireflective treatment Diameter: 38.00 mm Height: 11,65 mm Water-resistance: 30 m Dial: Offset in white or black Hands: Stainless steel with hand finishing Strap: Delivered with a bi-material rubber and Alcantara in satin white or black Buckle: Double-fold clasp in stainless stee

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LUXURY WATCHES

HUBLOT INVITES YOU TO ENJOY THE SUNNY SIDE OF LIFE!

BIG BANG UNICO YELLOW MAGIC Although yellow is a primary colour that is abundant in nature, this colour is still difficult, nigh on impossible to reproduce in a material such as ceramic. As a real accelerator of innovation, and thanks to its expertise, the Hublot Manufacture has achieved the impossible by creating the first bright yellow ceramic. Your future is bright, thanks to Hublot's Big Bang Unico Yellow Magic. Do you want this sunny yellow to brighten your day?

Sunny, radiant, optimistic...it makes you feel so good this happy pop of bright yellow!

In addition to its unmissable on-trend look, it is sporting the colours of the technological feat to which the Swiss watchmaker now holds the secret.

INNOVATION WITHOUT LIMITS

BIG BANG UNICO YELLOW MAGIC

Yellow Magic, the name of the new brightly coloured high-tech ceramic created

by Hublot which has been predestined since the arrival of its red ceramic in 2018. A unique process, a patented material, entirely developed and produced by the Manufacture's R&D department and its Metallurgy & Materials laboratory. Four years of development to find the perfect balance of temperature and pressure enabling the ceramic to be sintered without burning the pigments. Hublot has met the challenge of retaining the properties and the colorimetry of the pigments while increasing the wear resistance of this ceramic which is harder than traditional ceramics (1350 HV versus 1200 HV). No more black and white! Thanks to Hublot ceramic is available in all colours – red, blue, beige, green and now yellow! With this perfect fusion of performance and stylish looks.

Available in a limited edition of 250 pieces, the solar power of its 42-mm case and its bezel shine in the light of this yellow ceramic.

In an ultra-invigorating colour palette, the flange, indexes, minute and seconds counters, Arabic numerals and hands are all in this sunny yellow, to highlight the mechanism of the Unico HUB1280 manufacture movement and its column wheel, visible on the dial side through the sapphire crystal. The brightness continues right down to its lined and structured yellow rubber strap: the Big Bang Unico Yellow Magic is here to help you enjoy the sunny side of life!

The brightness continues right down to its lined and structured yellow rubber strap: the Big Bang Unico Yellow Magic is here to help you enjoy the sunny side of life!

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REFERENCE 441.CY.471Y.RX Limited to 250 pieces DIAL Matt Black and Yellow Skeleton Dial with Yellow Appliques with Black Luminescent CASE Polished Yellow Ceramic Diameter: 42 mm Thickness: 14.50 mm Water Resistant: 10 ATM (100mt) MOVEMENT Caliber Hublot HUB1280 UNICO Manufacture self-winding Chronograph Flyback Movement with Column Wheel Frequency: 4 Hz; 28'800 A/h Power reserve: 72 Hours Number of components: 354 Jewels: 43 CASE BACK Microblasted Black Ceramic, Engraved “LIMITED EDITION 250NUM” Sapphire with Anti-reflective Treatment STRAP AND BUCKLE Yellow and Black Structured Lined Rubber Strap With Black Ceramic and Black- plated Titanium Deployant Buckle Clasp BEZEL Polished Yellow Ceramic PRICE CHF 24‘900 EUR

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WATCHES & WONDERS 2021:

LOUIS MOINET BRINGS THE SPACE RACE TO LIFE WITH THEIR UNIQUE MOON SERIES With every watch comes a story, whether personal or one of the world’s biggest events. A story connected to a watch is often the most powerful aspect of a watch. But what if the watch becomes the actual storyteller? By doing so, a watch becomes more than just a timepiece. It becomes art. Louis Moinet is a brand that has mastered the art of storytelling through its timepieces. Can you imagine our reaction when the brand announced its new Moon Race series? It won’t surprise that we were curious to find out what that would look like.

You can look at a watch as a tool as most people do. The technical wizardry that goes into creating a watch is often already an art form. It’s an art form that the watchmakers at Louis Moinet understand perfectly. But they have been pushing the boundaries of storytelling for quite some time. One of the most mindblowing series the brand creates is the Cosmic Art collection.

Within that specific collection, the brilliant Space Revolution stands out for me. That watch is simply from another planet regarding the storytelling and the horological art that goes into it. Every time I look at that piece and see two spaceships battle it out beneath a sapphire crystal dome, I am amazed by how bonkers that idea was and how stellar the execution is. Some of the Fratello team members had a chance to check it out during

the Geneva Watch Days and were baffled by what they saw.

THE LOUIS MOINET MOON RACE SERIES

When it comes to compelling space stories, nothing beats the Space Race that led to us humans landing on the Moon in 1969.

The race to the Moon is one of our history’s most amazing stories, certainly in recent times. It was the inspiration for Louis Moinet to create a series of four watches bringing that unique story to life. The four timepieces depict the four key episodes in the conquest of the Moon.

The first piece is the ‘First On The Moon’ that tells the Soviet Luna 9 space probe’s story that made the first successful lunar soft landing in 1966. The second piece is the ‘Man

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On The Moon’ that depicts the story of the Apollo 11 mission that enabled humankind to set foot on the Moon in 1969. The third piece is the ‘Around The Moon’ that tells the story of the Apollo 13 mission’s return journey that required going around the Moon before returning to Earth in 1970. The fourth and last piece is “Last On The Moon’ and portrays the story of the Luna 24, which is the last probe of the Luna program to land on the Moon in 1976.

REMARKABLE MATERIALS

To create these remarkable timepieces, Louis Moinet combines the finest craftsmanship with the most amazing materials. The materials range from lunar meteorite to the most spectacular natural stones. On top of that, the brand got a hold of authentic fragments of four spacecrafts that were part of these stories that shaped history. These fragments were integrated into the creation of each of the four pieces. This is proper mind-blowing stuff.

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MODEL MOON RACE SERIES DIAL Four unique dials telling four different stories.

Each dial is made from materials ranging from lunar meteorite to the most spectacular natural stones. Fragments of the space crafts were integrated into the creation of each of the four dials.

CASE MATERIAL 18K Rose gold Case Dimensions Diameter 47mm Crystal Sapphire CASE BACK Sapphire display caseback MOVEMENT Louis Moinet Caliber LM35 - manual winding tourbillon movement, 19 jewels, 21,600vph, 72-hour power reserve Water Resistance 30 meters STRAP Blue alligator strap with rose gold folding clasp FUNCTIONS Hours, minutes, seconds PRICE CHF 1,250,000 (box-set) Special Note(s) The one-of-a-kind box-set comes in a specially created natural elm burr wooden box.

LOUIS MOINET FIRST ON THE MOON

The First On The Moon piece tells the story of the Soviet Luna 9 space probe that made the first successful lunar soft landing in 1966. It was launched on January 31st, 1966, and landed in the Ocean of Storms (Oceanus Procellarum) on February 3rd, 1966, giving the world the first panoramic images of the lunar surface.

It includes a piece of woven fiber from the Luna 24.

To bring this story to life, the dial tells the story of the landing of the Luna 9.

The spacecraft is hand-engraved and then entirely painted. It includes a piece of woven fiber from the Luna 24.

This piece made the journey from the Earth to the Moon and back aboard Luna 24. The Moon is entirely handengraved and then blackened for the right feel of the lunar surface. The beautiful sky is made of aventurine glass, creating an incredible sky full of sparkles representing the stars. Lastly, the Earth is hand-painted in great detail, completing the story on the dial.

But that is not where the story ends.

The hand engravings on the bezel represent Luna 9, as well as the lunar landing capsule. The first images of the Moon were taken by this capsule and sent back to Earth via its antennae.

On the dial, you will find a remarkable depiction of the moment that Neil Armstrong walked on the moon. His astronaut’s suit is hand-engraved and colored using a miniature painting technique. Are you ready…the visor is an authentic fragment of the polyimide film that protected the Apollo 11 spacecraft across a wide temperature range (-250°C to 400°C). This material was used to travel from the Earth to the Moon and back. It’s rather mind-blowing stuff.

The lunar surface is actually represented by a real lunar meteorite.

To create the painting of the lunar module’s reflection, the painter trimmed his brush one hair at a time until their brush has only one hair left to create the incredible decoration. The lunar surface is actually represented by a real lunar meteorite named Dar Al Gani 400. It was found on Earth in 1998.

The Earth is made of lapis lazuli and floats in the sky that is made from black aventurine.

The hand engravings on the top of the bezel represent the Saturn V rocket.

Furthermore, the engravings in the center depict man’s first step on the Moon. Those at the bottom show the footpads of the Apollo lunar module as it lands.

LOUIS MOINET AROUND THE MOON

LOUIS MOINET MAN ON THE MOON

Man On The Moon is the second piece and depicts the story of the Apollo 11 mission that enabled humankind to set foot on the Moon in 1969. It’s a story we all know and love. The Saturn V rocket left the Kennedy Space Center on July 16th, 1969, and the crew landed on the Moon on July 21st, 1969.

The third piece is Around The Moon, and it tells the famous story of the Apollo 13 mission’s return journey that required going around the Moon before returning to Earth in 1970. The Apollo 13 astronauts took off from Kennedy Space Center on April 11th, 1970, and returned home safely after an incredible adventure on April 17th, 1970

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The spacecraft on the dial is hand-engraved and then enhanced with a polyimide film fragment from the Apollo 13 spacecraft. It protected it on its return journey, particularly during its atmospheric re-entry.

This material traveled from the Earth to the orbit of the Moon and then back to Earth.

As we see the spacecraft headed for Earth, the face A ONE-OF-A-KIND BOX-SET of the Moon is made The four watches come as a one-of-afrom black Onyx set kind box-set in a special natural elm burr against granite from wooden box. On the outside, the box is adorned the Bernese with a black-lacquered Fleur de Lys pattern. Two Oberland.

launched

cognac-colored leather straps top the domed lid. The on August 9th, inside is made of black leather. The inside of the cover The bottom shows 1976, landed on features an 18th-century treasure: the drawings of the command the Moon 9 days the Sphere of Copernicus & Sphere of Ptolemy by module that landed later before Buy de Mornas. The printing is enhanced with in the Pacific Ocean. returning to Earth on watercolors, making it another unique August 22nd, 1976 feature of an already impressive The Earth is depicted by Luna 24 is depicted on box-set. blue Pietersite from Namibia the dial returning to Earth. with a great shimmering effect.

For the sky, the watchmakers once again used aventurine that was sourced and cut by the Haas family. The family has been a partner for Louis Moinet in the field of exceptional stones.

The hand engravings on the top of the bezel represent the Odyssey service and command module. In the center, we find a view of the Moon that shows a distant Earth. Finally, the engraving on the bottom shows the command module that landed in the Pacific Ocean.

LOUIS MOINET LAST ON THE MOON

The last of the four watches is Last On The Moon, and it tells the story of the Soviet Luna 24. Luna 24 was the last probe of the Luna program to land on the Moon in 1976. It brought back 170 grams of lunar soil samples that, after testing, proved the existence of water on the lunar surface. The Luna 24 was

The spacecraft is hand-engraved and features a piece of resin-coated braided fiber from the actual Luna 24 module.

And needless to say, this piece of material also traveled through space from Earth to the Moon and back. The Moon is made of copper with special etching to highlight its craters.

The Earth is made from an exceptional mineral called azurite-malachite.

The Earth is made from an exceptional mineral called azurite-malachite. It is accompanied on the dial by a yellow Pietersite sun, and both are placed once again on an aventurine background that represents the sky. The hand engravings on top of the bezel represent the Proton rocket. It was used on many Soviet space missions, including Luna 24. The center engravings represent the lunar surface. Lastly, the base of the bezel features the design of the Luna 24 space probe.

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LUXURY YACHTING

VOLKSWAGEN IS TEAMING UP WITH SILENT YACHTS TO CREATE FUTURISTIC SOLAR-POWERED CATAMARANS The vessel will feature the same powertrain as VW’s ID.3 and ID.4.

After churning out cars 84 years, Volkswagen is switching gears and segueing into the yachting game. The German automaker recently announced it’s taking its electric vehicle platform to the high seas in the form of a new solar-electric catamaran.

Volkswagen has partnered with Austrian builder

Silent Yachts for the new endeavor that will eventually see the same electric powertrains currently used in VW’s ID.3 and ID.4 installed in an array of ocean-going multihulls.

For the uninitiated, Silent Yachts is credited with producing the world’s first solar-powered catamarans, which have soared in popularity over the past few years. Nicknamed the Teslas of the seas, Silent’s cats are fitted with solar panels and lithium batteries that together deliver near unlimited range sans noise, emissions, fumes or vibrations.

While the fleet is nothing short of impressive, VW claims its new setup will make the vessels even better. That’s all thanks to the marque’s modular e-drive system (MEB). VW says the MEB is powerful, quiet and produces low vibrations. On top of that, it’s used in millions of EVs and benefits from economies of scale. In short, the catamarans that incorporate MEB should be less

expensive to build and easier to service.

The inaugural design, Silent 50, was penned by the VW-owned brand Cupra. While there is only one render currently available, it appears to be a slightly more futuristic take on Silent’s signature design with a jet-black exterior and more refined solar panels. Spanning 50 feet, it will be one of the smallest cats in Silent’s fleet, which runs from a $2.38 million 55-footer (above) up to an everpopular $6.67 million 80-footer.

Michael Jost, head of group strategy product and CSO of the Volkswagen brand, says the current plan is to install up to six batteries per yacht and to enable 500 kW power for yachts around 50 feet plus. That will enable the vessel to cruise all night non-stop and also power the onboard amenities.

“With Volkswagen’s modular electric platform MEB we enable clean and highly cost-efficient mobility for all-electric vehicles,” Jost told Robb Report. “I’m pleased that we are now extending the usage of MEB from land to sea. MEB offers

nearly unlimited opportunities on the way to net CO2-neutral mobility.”

The jointly declared goal of the three companies is to put the first solar-electric catamaran with MEB propulsion on the water in 2022. After four years, the plan is to produce at least 50 of the MEB-based Silent Yacht 50 per year, and more if required. Bring it on.

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THIS GORGEOUS 394-FOOT GIGAYACHT CONCEPT HAS A TWO-LEVEL BALLROOM WITH PANORAMIC VIEWS The five-deck vessel also packs a pool, beach club and two helipads for good measure.

Gresham has a rep for turning out groundbreaking gigayachts, and its newest 394-footer is no exception. The concept, which goes by the name of Emir, has more in common with a 5-star resort than a vessel on the high seas.

Emir sports a sleek, all-white exterior with sinuous lines and a dramatic bow, though it’s the luxurious interior that truly sets her apart. The UK studio has doubled down on both grandeur and elegance to create living quarters that seafarers will rival anything you’ll find on land.

The centerpiece is a sprawling double-height main saloon that the studio fittingly describes as a ballroom. It features luxe furnishings, high ceilings, a curved staircase and a walk-around balcony with two levels of floor-to-ceiling windows that promise panoramic views.

Think of it as the ballroom from the Titanic reimagined for the 21st century.

As you might expect, the owner’s quarters are as equally lavish. In addition to a full-beam master suite, there’s a dedicated owner’s saloon that boasts its own dining area, games table and fully stocked bar, along with a separate owner’s deck that comes complete with a jacuzzi and ocean views.

Emir offers no less than five decks, along with two certified helipads that can be used for day-time jaunts or to chauffeur guests. Not to be forgotten, the aft deck features a cantilevered swimming pool that flows from the main deck to a lower deck below. Here, one can enjoy the beach club with swim platform, the wellness center with gym or the cinema.

Gresham has previously penned a futuristic 328footer with an interior straight out of a sci-fi flick and an ice-class explorer with one of the largest exteriors of any expedition yacht. The studio also recently partnered with OceanX to turn a former offshore survey ship into a 285foot explorer. Coincidently, the vessel, which was christened OceanXplorer, features an onboard movie studio designed by Titanic director James Cameron.

Perhaps Gresham’s gigayachts have ties to the 883-foot passenger liner in more ways than one.

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AI

Let's train outdoors together!

World Class opens the first outdoor fitness clubs!

Did you know that you can burn 500 calories in an hour of Zumba?

Or that 20 minutes of cycling a day can reduce the risk of heart disease by up to 50%?

From now on, take your friends and join the outdoor fitness group classes, powered by World Class!

The energy of World Class workouts is moving outside!

Group fitness, cycling, personal training and gym classes are all at your disposal, in the immediate vicinity of your favourite club.

Together we take our daily dose of health and good mood training outdoors! Because nothing is more important than health, and a healthy life means, first of all, an active life.

GET OUT ON THE MOVE! Even when health & fitness clubs are closed, or when you work more from home and you don't have a strong motivation to go out the door, all day long, your heart needs to train, to increase endurance, to becomes stronger.

The cardiovascular system is complex and needs your care every day. It is vital to maintain heart health through sport and exercise.

TRY THE OUTDOOR TRAINING EXPERIENCE, IDEAL FOR ANY LEVEL OF TRAINING! World Class outdoor workouts are for everyone, from beginners to performance athletes. In addition to the extraordinary vibe that moves from the gym outside, outdoor fitness also brings you an unparalleled feeling of freedom and well-being.

Choose your favourite classes or come to the outdoor gym area for cardio or strength training and enjoy the maximum benefits that outdoor exercise has on your physical and mental health.

Outdoor fitness programs are designed to get maximum results. If we almost convinced you, we bring you 3 serious reasons to start outdoor training now:

1. YOU CAN EASILY FIND YOUR MOTIVATION AND INSPIRATION You are outdoors, without constraints, without worries.

It's hot outside and it's a holiday atmosphere. You forget about everyday problems, and people around you train smiling. That’s right. Smiling! The advantage is that you can train safely without a mask.

2. YOU ARE PART OF A COMMUNITY It may sound cliché, but it's true. Being part of a "big family" can actually be extremely beneficial. Being in a community, you can find support and guidance from people who share the same goals as you. Whether you want to improve your health and well-being, strength and endurance, there will always be someone who understands you, admires you for your tenacity and encourages you.

3. ADD DIVERSITY TO YOUR WORKOUTS! Diversifying your workouts is one of the best ways to prevent monotony, and the outdoor group fitness class is where you keep your energy and enthusiasm guaranteed until the end.

Are you still home on the couch? Time to get up and pick your most comfortable sports equipment and nothing else. At World Class outdoor clubs, we have everything you need for workouts that raise your heart rate and give you maximum health benefits!

Access www.worldclass.ro and find out the locations of all World Class outdoor clubs. Don't forget, #ExerciseIsMedicine and together we train for health, immunity and longevity, wherever we are!

LEADERS’ AWARDSGala INANCIAL F

HALL OF FAME 2021

in partnership with

Business Arena Magazine is proud to announce the 2021 edition of its annual event dedicated to the leaders in the financial market:

FINANCIAL LEADERS’ HALL OF FAME 2021

Business leaders from the financial and baking sectors, directors of investment funds and representatives of some of the largest companies in Romania, together with representatives of the local authorities, high government officials and diplomats are invited to take part in this exclusive event.

Digitalization and online access to banking and financial products and services shape the future of the industry, while the coronavirus pandemic has had a significant contribution to speeding up the process.

Operating in a highly competitive environment, banks and financial institutions have made outstanding progress in introducing new and innovative products and cutting-edge technologies in order to adapt their business model to the requirements of the new millennium.

Speaking at last year’s edition, Florin Ganescu, Executive President of the Romanian Association of Banks, emphasized the industry’s efforts to fight the

negative effects of the healthcare crisis. “The financial industry has been acting responsibly in Romania and elsewhere. We expect a lot from people in decision-making positions, but when results don’t come, we can replace their inaction with our actions.” He added: “In the interviews I have given during the Covid-19 pandemic, I insisted on emphasizing the efforts of bank and financial industry employees, who have served their customers discreetly, with responsibility, subtlety and effectiveness.”

As always, Business Arena Magazine is proud to recognize the achievements and successes of banks, financial institutions and business leaders that find the winning strategies in spite of the challenging economic background.

Business Arena Magazine is proud to recognize the achievements and successes of banks, financial institutions and business leaders that find the winning strategies in spite of the challenging economic background.

For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

A B

ENJOY the QUALITY

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ADMIRE the VALUE

magazine

Business Arena operates with a combination of permanent and freelance staff and has a wide network of writers, salespeople, conference moderators and digital experts with experience in many different markets which it calls upon when required.

Business Arena Magazine is a monthly English-language business magazine published

by Business Arena Publishing Group SRL. The magazine was launched in October 2009, and, since then, it has gained reputation as a valuable source of information and analyses for business people and professionals, offering a wide range of exclusive interviews, feature stories and reports, market analyses and special columns.

With over 20 years of experience in the business media segment, Business Arena Magazine’s team of dedicated journalists, graphic design artists, sales and marketing professionals count on innovation, responsibility and product quality as long-term strategies for development.

PUBLISHER: MADRIO PAUL }IC| & CONSTANTIN STÂNGACIU COSMIN STÂNGACIU, GENERAL MANAGER tel: 0755.274.125 - cosmin.stangaciu@business-arena.ro.

TEAM MANAGEMENT AND DEPARTMENT COORDINATORS:

Cristian Cojanu, Copy-Editor, cristian.cojanu@business-arena.ro Paul Madrio, Art-Director, paul.madrio@business-arena.ro

Claudia Ariton, News Director, claudia.ariton@business-arena.ro Reproducerea sau folosirea, f\r\ permisiune, a con]inutului grafic [i editorial sunt interzise.

Not\: Prestige Page = Advertorial “Editorul Revistei BAM [i Colectivul redac]ional al acesteia, nu sunt r\spunz\tori pentru con]inutul articolelor redactate de catre jurnalisti independen]i (free-lanceri) [i publicate `n spa]iul pus la dispozi]ie `n paginile revistei, `n aceste cazuri r\spunderea revenind `n exclusivitate autorului articolului.”

ISSN 2069 - 1807

CIRCULATION 10000