REGIONAL CITIES: THE NEW WAVE ON THE OFFICE MARKET
WHERE ROMANIA TALKS BUSINESS October, 2017 / Volume 21, Issue 8
www.business-review.eu
6
FIRMS STRUGGLE TO FIND WORKERS ON TIGHT LABOR MARKET
20
HUAWEI PREPARES GROUND FOR INFRASTRUCTURE SHIFT TO 5G
26
COUNT-ING ON TOURISM: KALNOKY PROMOTES RURAL ROMANIA
34
Walking
the fiscal wire
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EDITORIAL 3 REAL ESTATE
• Editorial •
6 Regional cities: the
Ovidiu Posirca
new wave on the office market
• Senior Editor •
10 Landmark decision: Piraeus Bank plans office project exit on buoyant market
COVER STORY
Navigating through unstable policy plans By making a swift announcement that Romania’s profit tax will be
12 Private sector awaits coherent approach to fiscal policy
dropped for good, the government got the attention of the private sector and of European institutions, but not necessarily for the
IT & TELECOM
right reasons. We’re replacing the profit tax with a turnover tax or we’re
22 Bucharest is successfully
implementing a new solidarity tax, while also looking to tax house-
riding the insourcing wave
holds instead of individuals. All these ideas that were announced
26 Huawei prepares ground
to much fanfare have been abandoned, as companies repeated
for global infrastructure shift to 5G
what they have been saying for years – critical changes to the fiscal framework should be made following thorough impact studies and
CITY
dialogue with job creators. After sending a shockwave through the business environment, the government went on to announce plans for the split VAT system. This is going to be implemented in some form and companies are already having to set aside money for the additional training of staff and improvements to IT systems. With Romania lagging behind most EU countries for tax collection, the authorities are going for the low-hanging fruit and enforcing additional taxes overnight as they frantically look to plug budget holes. This might work on the short term, but the historic tax collection issues are still there. Some progress has been made in redesigning the structure of tax administration agency ANAF by creating regional offices, but the IT infrastructure is still lagging behind. Despite promises that the most frequent transactions be-
36 Behind the scenes of two leading performing arts festivals in the world
years, it remains to be seen if instead of seeing more investments
37 Changing inequality: an NGO leads the way 38 Enescu Festival: decoding contemporary music with
in streamlining cooperation between companies and the taxman,
Graham Fitkin
tween taxpayers and the state will be moved online in the next few
we might continue to see fiscal innovations that we will pay for at the end of the day.
40 Making music: a talk with Daniel Miller 46 Cultural Calendar
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgiana Bendre, Georgeta Gheorghe, Otilia Haraga, Daniela Oancea, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu HEAD COPY EDITOR: Debbie Stowe, COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu MARKETING: Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat ISSN NO. 1453-729X EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
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4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at georgiana.bendre@business-review.ro
Daniel Hadar joined the Cluj office of Nestor Nestor Diculescu Kingston Petersen (NNDKP) as tax director in the Tax Advisory Services department. Hadar will expand the Cluj tax advisory services practice and will play a central role in the further consolidation of the Legal & Tax project. A graduate of the School of Accounting and Management IT of the Bucharest Academy of Economic Studies, he has 11 years of experience in tax consultancy with audit companies.
The group recorded a profit of RON 11.1 million in 2016
World Bank Investment division exits TTS group for EUR 9.4 million By Georgeta Gheorghe International Finance Corpo-
entered the TTS group five years
Mircea Mihailescu controls
ration (IFC), the investment
ago, by bringing a capital of EUR
Navrom, the passenger and
division of the World Bank, has
12 million. The TTS Group is one
freight transport operator in
exited the Transport Trade Ser-
of the biggest maritime transport
the Danube Delta. The com-
vices (TTS) group, one of the
companies in Romania, while
pany also includes TTS Con-
biggest transport operators in
also maintaining a rail transport
stanta, Canopus Star Constan-
Romania, for EUR 9.4 million,
division. Last year, the group
ta, Trans Europa Port Galati,
after five years.
recorded a RON 275.7 million
Cernavoda Shipyard, Bunker
turnover and posted RON 11.1
Trade Logistic Constanta, Car-
million in profit.
gorom Antwerp (Belgia), TTS
According to business news portal Profit.ro, IFC exited TTS by selling its entire stock, namely 6 percent. The IFC
Via the group, Constantabased businessman Alexandru
Viena, Agrimol Trade Bucuresti and Transterminal Chisinau.
Wolfgang Meier was appointed CEO of Pirelli Tyres Romania, replacing Giuliano Menassi, who took on the position of R&D senior vice president at Pirelli Group. With 22 years of experience in the field, Meier has held different positions such as head of HR & Purchasing in Germany, head of HR& Manufacturing Engineering in the UK and head of HR Pirelli Technology Headquarters. Aside from the new management mandate, Meier will keep his role as head of HR in Germany.
page 5
Vodafone Romania to accelerate investments in big data, digitalization By Ovidiu Posirca The new CEO of Vodafone Romania, Murielle Lorilloux,
services. Lorilloux, who took the helm
says the operator will increase
at Vodafone Romania in early
its headcount as it moves to
September, says there will be a
implement a new business
“more sophisticated approach
strategy that focuses on the
for each customer” and that the
enhancement of big data
offers are starting to become
for clients, the convergence
more segmented.
of fixed-mobile services for homes and the digitalization of
In the content segment, the CEO said the focus on video will
Murielle Lorilloux took helm at Vodafone Romania in September
www.business-review.eu Business Review | October 2017
NEWS 5 tion or delivery companies as well as those in the automotive industry. The industrial projects market will also absorb by the end of the year approximately
Madalina Gogorici
300,000 square meters of projects, most of them being already pre-leased or developed as build to suit. Most projects being developed are in the capital and the surroundings, The industrial projects market is set to absorb around 300,000 sqm by year-end
A record 400,000 meters of logistic spaces to be delivered by year-end
an area that gathers the biggest stock of industrial spaces in Romania. West and North-West regions provide the second biggest stock of industrial spaces available, followed by south and south-east areas. Bucharest and the surrounding areas will deliver EUR 1
By Georgeta Gheorghe
million square meters of Class
A record 400,000 square
the year, the stock of industrial
A industrial projects. Projects
meters of logistic spaces are
and logistics spaces will increase
currently developed in the area
expected to be delivered this
by at least 350,000 square meters
will deliver a total of 60,000
year. The large developers on
of class A spaces.
square meters. The west and north-west areas of the country
the Romanian market will start
According to the report, most
new projects as well as expand
requests came from the logistics
are also likely to deliver record
the logistic spaces they own.
and retail spaces, two sectors
figures, as new projects are
that thrived this year. In the
expected to start. Once the
on the industrial real estate
first half of the year, 43 percent
projects under construction are
sector, in the first six months of
of the rental activity of indus-
completed, the total stock of
2017, more than 100,000 square
trial spaces came from logistics
industrial projects could exceed
meters were delivered. Accord-
companies, 27 percent from retail
750,000 square meters, includ-
ing to estimates, by the end of
companies, followed by distribu-
ing class A spaces.
expand as the company already
industrial revolution that will
has distribution deals with
bring a further integration of
movie streaming platforms HBO
tech in the economy.
According to a CBRE report
is Holcim Romania’s new manager of occupational health and safety, a newly created position within the company. Gogorici has 20 years’ experience in the industrial field and coordinates the implementation and management of health and safety programs for the factories and locations of Holcim Romania, for approximately 800 employees. She graduated from the Chemistry Faculty of the Bucharest University.
Adrian Cazan joined the Clifford Chance team as senior associate specialized in real estate and M&A. With 15 years’ experience in the legal field, he is returning to the company where he started his career. The move is meant to strengthen the company’s team at the senior associates’ level. Michele Abbate
GO and Netflix. Talking about the invest-
“I’ve been in Romania for three weeks. I’m really im-
ment plans for 2018, she said
pressed and happy about what
the company will make “double-
I’ve seen so far,” said the execu-
digit investments” to the tune of
tive, adding that the manage-
millions of euros to expand the
ment team and the overall opera-
network and to pursue the new
tions are very good locally.
business strategy. On the digital side, the CEO
On 5G developments, the CEO said that Vodafone will expect
said that the ultimate goal is to
telecom regulator ANCOM to
provide better productivity tools
start the tender for the new
for companies and individuals,
spectrum, which should happen
citing the advent of the fourth
in 2018 and 2019.
was appointed by the Enel group as the managing director of Enel Energie and Enel Energie Muntenia. Abbate joined the Enel group in 1992 and has vast experience in the sales and customer care area, having held several positions within the company. In his new position, Abbate will manage the general business strategy, with a focus on the expansion of the portfolio of solutions. He will also coordinate the sales and distribution activities of the Enel group in Romania, as well as the customer care and VAT divisions.
www.business-review.eu Business Review | October 2017
6 REAL ESTATE
Regional cities: the new wave on the office market As the office market in Bucharest is maturing, cities like Timisoara, Cluj-Napoca, Iasi and Brasov gain ground in the eyes of real estate developers. By Anda Sebesi
T
Openville Timisoara will include seven office buildings
he modern office stock in the main regional cities in Romania – Cluj-Napoca, Timisoara, Iasi and Brasov – reached about 700,000 sqm in mid 2017, or 73 percent lower than in Bucha-
rest, says the most recent data of Cushman & Wakefield Echinox real estate consultancy company. Going further, the Cushman & Wakefield Echinox makes a comparison with Poland, a relatively similar market with the Romanian one, that shows a gap in the development of Polish regional cities compared with Warsaw. While the modern office stock exceeded 5 million square meters in Warsaw, the four major cities of the country, Kracow, Lodz, Katowice and Wroclaw have a cumulated stock of 2.7 million sqm of office spaces. But by comparison with Romania, things are different in Poland when it comes to attract potential employees with high education. For example, in Warsaw there are 249,000 students while their number is almost double in the four Polish regional cities mentioned above. By contrast, according to National Institute of Statistics (INS), Cluj-Napoca, Timisoara, Iasi and Brasov have a cumulated number of
www.business-review.eu Business Review | October 2017
students of 181,734, or 5.6 percent higher than Bucharest. As for the density of office spaces related to the number of students, the Cushman & Wakefield Echinox data show that it is 21 sqm/student in Warsaw while in Bucharest the indicator is 15. “It is perfectly normal for the development of office market to start in the capitals where the largest companies and public institutions have their headquarters. But as the competition on the workforce becomes fiercer, companies look to extend their activity in other important university centres where they find well trained workforce and a bit lower level of salaries,” says Madalina Cojocaru, partner, office agency at Cushman & Wakefield Echinox. She adds: “We see a significant potential for growth of the market office outside Bucharest. A proof in this regard is that the office stock in Cluj, Timisoara, Iasi and Brasov will increase by 35 -40 percent and will reach the level of 1 million sqm by end of this year,” adds Cojocaru. According to Cushman & Wakefield Echinox data, Timisoara and Cluj-Napoca will post the most significant development in the next period, with a total of about 180,000 sqm following to be inaugurated in the two cities in the next period.
DEVELOPERS SEE THE POTENTIAL OF REGIONAL CITIES Mulberry Development started in Timisoara the construction of ISHO Offices, a new generation of office building. “The construction develops in parallel with the residential component and it is split in three stages. The first stage of the office project will have 18,000 sqm and will be delivered next spring,” says Ovidiu Sandor, CEO at Mulberry Development. He adds that the demand for office buildings in Timisoara is very high and comes from both companies that have a presence in the city and intend to consolidate it on the local market and new players that want to make their entrance there. IT, BPO, financing and engineering are among the main sectors. “This fall we will announce new contracts and we estimate that almost all of our available space will be leased by the time we will deliver the first stage of the project,” adds Sandor. Survey Sampling International, one of the global leaders in providing data solutions and technology for different sectors announced that it will lease office spaces for 200 employees at ISHO. Going further, this year Iulius Management Center company inaugurated its first A class office building out of seven office buildings that Openville Timisoara, a mixed use urban regeneration project will include. The project is designed as an urban sustainable center that will bring together office, retail, park and entertainment functions, spanning on a total built area of 594,000 sqm. “The most part of the project is represented by the office component developed under the United Business Center (UBC) brand and that will have about 130,000 sqm, split in seven office buildings,” says Laurentiu Manea, manager office buildings at Openville. The company has already delivered 18,000 sqm in January in UBC 2 office building and according to the company’s representative it is now 100 percent leased by companies like Ness Digital Engineering, Autoliv Romania, ACI Worldwide, Bitdefender, Azets, PwC, dm drogerie markt and Regina Maria. Other 13,000 sqm will be completed next month in the UBC 1 office building. At present 80 percent of UBC 1 office building is leased, with Atos, an international IT services provider
REAL ESTATE 7
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8 REAL ESTATE
being one of the tenants with 6,000 sqm. “In June we started the construction of our third office building, UBC 3 (18,000 sqm). We will start the construction of another two office buildings totaling of 55,000 sqm in the next period,” adds Manea of Openville. According to him, the demand for office buildings in regional cities comes mainly from global companies that have automotive or telecom research centers and intend to extend their operations there.
REGIONAL CITIES CAN ABSORB THE OFFICE BUILDINGS OFFER At present, the demand for office spaces outAndrei Drosu, Jones Lang LaSalle
side Bucharest is on an ascending trend mainly because of the expansion of international companies towards regional cities. “A total
Cluj-Napoca >> Number of students (as of 2015): 66,534 >> 275,000 sqm of modern office space at the end of H1 2017 >> 30,000 sqm is the total office demand recorded between 2016-H1 2017 >> 95,000 sqm of office space planned for delivery between H2 2017- 2018 >> 3 percent is the vacancy rate at the end of H1 2017
of over 80,000 sqm have been leased in the first five largest cities in Romania last year.
Monica Vasile, Cushman & Wakefield Echinox
Timisoara has the largest proportion from the
brings into light that the availability of the
total leased area (48 percent) being followed
workforce became the main constraint in the
by Iasi (28 percent) and Cluj-Napoca (14 per-
pace to which regional cities develop. “Look-
cent),” says Mihai Paduroiu, head of advisory
ing to the number of graduates and the profile
& transaction services, investor leasing within
of the labour market, there is an annual po-
office department of CBRE Romania. Accord-
tential of about 150,000 sqm to be absorbed
ing to him, the vacancy rate in regional cities
organically in Cluj, Iasi and Timisoara. If
remains low due to the fact that when a new
we include Brasov, a smaller market now,
real estate project is completed, up to 80 to
we could almost reach the level of potential
90 percent of it is already leased. “The aver-
net demand registered in Bucharest,” adds
age vacancy rate in the largest regional cities
Didoiu. He also highlights that just a quarter
in Romania is about 7 percent and we don’t
of the IT&C graduates comes from Bucharest,
see a significant variation despite the fact that
compared with 60 percent in Cluj-Napoca,
many projects have been announced for the
Iasi, Timisoara and Brasov.
next two years. The pace of development is a sustainable one given the fact that the offer
TIMISOARA LEADS THE WAY
will be covered by the demand,” says Andrei
According to Drosu of JLL, in H1 2017 Timiso-
Drosu, consultant within the research depart-
ara posted the highest demand for office
ment at Jones Lang LaSalle (JLL).
spaces, 13,200 sqm, followed by Cluj-Napoca
As Monica Vasile, senior broker, office
George Didoiu, Colliers International Romania
(8,700 sqm) and Iasi (6,000 sqm). But despite
agency at Cushman & Wakefield Echinox
some transactions have been completed in
says, the total demand for office spaces in the
smaller cities like Targu Mures, Craiova or
main regional cities in Romania was about
Pitesti the offer for modern office spaces here
120,000 sqm in the past 18 months. “Regional
is still very low. The same perspective shares
cities in Romania are capable to absorb a
Paduroiu of CBRE, too. “Excepting the large
massive volume of office spaces considering
cities like Timisoara, Cluj-Napoca and Iasi,
the fact that at the end of the first half of this
in Targu Mures, Pitesti and Craiova both the
year, their density was 0.85 sqm/inhabitant
activity and interest for new office spaces
in Cluj-Napoca, 0.62 sqm/inhabitant in Iasi,
increased significantly. But these cities had a
0.45sqm/inhabitant in Timisoara and 0.37
weight of 10 percent of the total leased area,”
sqm/inhabitant in Brasov”
he says. According to him, in general, technol-
George Didoiu, associate director, office agency at Colliers International Romania
ogy, IT and professional services remain the most active industries that lease office spaces.
www.business-review.eu Business Review | October 2017
Timisoara
Brasov
>> Number of students (as of 2015): 54,653 >> 180,000 sqm of modern office space at the end of H1 2017 >> 31,300 sqm is the total office demand recorded between 2016-H1 2017 >> 14,000 sqm of office space planned for delivery between H2 2017- 2018 >> 4 percent is the vacancy rate at the end of H1 2017
>> Number of students (as of 2015): 39,898 >> 144,000 sqm of modern office space at the end of H1 2017 >> 56,200 sqm is the total office demand recorded between 2016-H1 2017 >> 90,000 sqm of office space planned for delivery between H2 2017- 2018 >> 2 percent is the vacancy rate at the end of H1 2017
>> Number of students (as of 2015): 21,366 >> 94,500 sqm of modern office space at the end of H1 2017 >> 8,500 sqm is the total office demand recorded between 2016-H1 2017 >> 51,000 sqm of office space planned for delivery between H2 2017- 2018 >> 8 percent is the vacancy rate at the end of H1 2017
“This trend is similar for regional cities too,
est potential in the future despite in the past
impetus in this sector is based on an increas-
where IT companies have leased over 21,000
two years cities like Sibiu, Craiova and Galati
ing demand coming as a result of an increas-
sqm and professional services ones over
managed to attract companies that are ready
ing number of companies that are attracted to
4,500 sqm in the first half of 2017,” adds Pa-
to open their offices there.
invest in Romania,” adds Paduroiu.
duroiu. Drosu of JLL shares the same opinion
Speaking of the attractiveness of the
All in all there are reasons to believe
saying that at present the market is dominat-
regional cities, Didoiu of Colliers says that
that regional cities will continue to post a
ed by IT&C companies which leased about 70
for companies with local and smaller activity
sustained evolution, say pundits. “First, as
percent of the total transactions registered in
and with a lower level of complexity, regional
the services industry doesn’t face the same
the first half of 2017, followed by outsourcing
cities can be more attractive given the fact
physical limitations as the processing one,
companies with 20 percent. “Companies that
that they pay lower salaries or rentals. “For
employers follow the employees. Regional cit-
make their entrance in Romania by opening
example, salaries in IT&C in Cluj and Timis
ies deliver a considerable larger number of IT
offices outside Bucharest (like Alcatel, Nokia,
counties are comparable with those registered
graduates, the most wanted employees now.
Continental, Atos) and those that extend their
in Bucharest but in Iasi county there are 20
Second, looking to the turnover of potential
operations from Bucharest to regional cities
percent lower,” says Didoiu. Going in the same
employees, we can see that Bucharest didn’t
(like IBM, Accenture or Vodafone) slice the
line, Drosu of JLL says that the increasing
grow as quick as Timisoara, Cluj-Napoca
outside Bucharest office market now,” he says.
demand coming from IT&C companies which
and Iasi and we think that it will lose ground
find high qualified specialists in regional cities
before them,” says Didoiu of Colliers. He adds
WHAT WILL FUEL THE OUTSIDE BUCHAREST MARKET?
will fuel the appetite of developers to invest
that the age profile is better in regional cities
in projects there. “From our perspective,
compared with Bucharest. “Last but not least,
Vasile of Cushman & Wakefield Echinox says
these cities have all the needed ingredients –
the modern stock office per inhabitant is
that the office market from regional cities
economic, demographic and social indicators
about twice lower in Cluj and Iasi compared
is quite dynamic and it is on an ascending
and industry – meant to support a develop-
with Bucharest and three times lower in
trend at least from two perspectives: that of
ment of the local office market in the near
Timisoara,”says Didoiu.
the evolution of the completing of new office
future,” adds the representative of JLL.
buildings and of the number of companies
The office market in Bucharest has already
But how does a developer see the future of office market outside Bucharest? “Successful
that open new centers or extend their activity.
reached its maturity due to the presence of
projects are built with caution, in stages and
“A competitive cost with workforce combined
real estate investors and to the concentration
in a sustainable manner, based on a concept.
with high education and more and more
of investments in the capital, say pundits.
Our estimations say that these markets will
flying connections are the main reasons for
Thus, Romanian regional cities become a
grow and we can compare it with what hap-
investors to consider regional cities as an
target for many developers that intend to
pens in regional cities from other countries
alternative for their operations,” adds Vasile.
diversify their portfolios. “Such cities are
that have a similar development as Romania,
In her opinion, Iasi, Timisoara, Cluj-Napoca
changing now and investors are more and
with Poland being an example in this regard,”
and Brasov will continue to have the high-
more focused in this direction. The entire
concludes Sandor.
Source: Cushman & Wakefield Echinox
Iasi
REAL ESTATE 9
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10 REAL ESTATE
Landmark decision: Piraeus Bank plans office project exit on buoyant market The Landmark, the office complex in central Bucharest controlled by Piraeus Bank Romania, will be put up for sale by the lender, as it is set to reach full occupancy this year. In an office market that has expanded by around 75,000 sqm in the first semester in Bucharest, the bank says it has already received offers for the business park, which was completed late last year following investments of more than EUR 60 million. By Ovidiu Posirca some assets that have been repossessed by the bank.” “Most foreign investors, when they come to the Romanian market, they are basically looking at Bucharest and major cities such as Cluj,” added the banker.
OFFICE DEVELOPMENT TRENDS IN BUCHAREST The job of finding tenants for The Landmark belongs to Knight Frank Romania, the real estate consultancy managed by Horatiu Florescu, one of the veterans of the office market in Romania. He says this is one of the first
“
Piraeus Bank controls a 75 percent stake in The Landmark
business parks delivered in the center of the city in a long time. “If you ask me, the office market is much
There will be an exit for the bank.
energy multinational Total Group, which has
Although we love this project and we
its back office operations here. Firms in the
safer than residential. My main concern for
are very proud of it, we will probably
IT, legal and energy sectors have also moved
the coming years is the availability of land for
sell it because we’re not active in this sector;
their offices into the building, where the
offices. Now, for example, we are working on
we are active in the financial one (…) If we get
longest rental contract signed up to now is for
projects with delivery in 2020, 2021. We are
the right price, yes,” Nikos Chaniotis, deputy
ten years. The owners say that their tenants
signing a big prelease with a delivery in March
general manager at Piraeus Bank Romania,
were attracted by the good infrastructure
2020,” Florescu, chairman and CEO of Knight
told BR.
connections and the fact that the offices have
Frank Romania, told BR.
The project, which comprises three separate seven-storey buildings and a three-level
more than 300 parking spaces, something rarely found in the central area.
He says that the next big area for office development is Expozitiei, and that he is
“We don’t have a timeframe; we are not in
working on a couple of “big transactions” in
cupancy rate of 65 percent, and the bank says
a hurry,” said Chaniotis, about the sale of The
this area that will be announced in the next
the rest of the space will be fully occupied by
Landmark, in which Piraeus has a 75 percent
two to three months. The CEO adds that
the end of the year. Afterwards, Chanotis says
stake, while the rest is controlled by one Ro-
Bucharest’s business hub will remain in the
that Piraeus might start looking closer at exit
manian and one Greek individual. In August,
center, including the Barbu Vacarescu, Dimi-
options. The building also has a retail compo-
the bank appointed Colliers International as
trie Pompei and Expozitiei areas, while the
nent that will be priced higher.
property manager for the buildings.
center-west and south are the parts of the city
basement parking lot, currently has an oc-
“The ground floor and the first under-
Although the banker says that Piraeus is
where investors can still find land. “We can’t say that the market is overheat-
ground level are for retail. This was our
not interested in making any other invest-
strategy, first of all to focus on office space
ments in real estate, he notes that he gets
ing,” said Florescu, asked about the office
and then to go for retail in order to be able to
requests for financing from investors that
segment. “If you compare our numbers with
ask for a higher rent,” he said.
are very “bankable” and “actually in some
Amsterdam or Paris, we have a very small
cases they come with full cash in order to buy
market.”
The project’s biggest tenant is French
12 COVER STORY
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PRIVATE SECTOR AWAITS COHERENT APPROACH TO FISCAL POLICY Romania remains an attractive destination for investors from the point of view of its fiscal policy, but the constant hiking and cutting of various taxes in recent years has seen companies call for a more coordinated approach from the government when it comes to major changes in this field. Moreover, firms fear that some taxes will go up if the government is not able to keep the budget deficit below 3 percent this year. By Ovidiu Posirca
www.business-review.eu Business Review | October 2017
COVER STORY 13
14 COVER STORY
“
www.business-review.eu Business Review | October 2017
The last three-four years
the European Commission president,
have been marked by a lot of
Jean-Claude Juncker, directly that the
changes, successive increases
change would not be approved.
and reductions of taxes, without any
The list of fiscal changes announced
coherence on the long term,” repre-
and later dropped includes the solidar-
sentatives of the Foreign Investors’
ity tax, which would have been paid by
Council (FIC) told BR. The association
those earning ten times the minimum
has 123 member companies whose
wage, and the replacement of income
combined investments represent
tax for individuals with a household
around EUR 35 billion.
taxation system.
“From the experience of previous years, the business community is trying to avoid a situation in which
ADDITIONAL COSTS FOR COMPANIES OVER SPLIT VAT
the government is not able to meet its
But there is one change the govern-
deficit targets and will then decide to
ment is sticking with, which is the
increase taxes in order to balance the
split VAT system. With a VAT gap of
budget,” added the FIC.
around 38 percent – the uncollected
In short, the association says that the business environment would be supported by the simplification of
amount – the authorities say that this would eliminate fraud and bring more funds into the state coffers. According
procedures and the application of legislation aiming to reduce and
to Eurostat, the statistics office of the EU, Romania had over EUR 7
prevent fiscal evasion.
billion in uncollected VAT in 2014 alone.
In its turn, the government has made some progress with the
On the other hand, tax specialists say that companies will see
prevention draft bill, which will prohibit the authorities from fining
their costs go up as they will have to update their systems and train
firms immediately for minor offenses. Instead, public servants will
their staff to properly use the fresh provisions.
have to help the companies fix these problems, and only if they
Aside from the implementation costs, businesses will have to
see that nothing has changed will they be able to apply sanctions.
cover the additional costs of managing the split payment mecha-
This bill should be approved in Parliament in the current session,
nism on a day-to-day basis, especially where taxpayers need to split
according to the leaders of the ruling coalition.
numerous payments received in cash or via debit/credit card (such as retailers). Firms will also have to cover the cash blocked in their VAT account, which, in principle, cannot be used for payments other than VAT, according to Costin Manta, senior manager in the tax advisory department at EY Romania, the professional services firm. “Based on our discussions with bankers, the VAT split payment mechanism may actually reduce the taxpayer’s credit rating, as they will have
Although some progress has been made in terms of the stability
less cash available to pay the installments,” Manta told BR. “In some
of legislation, companies continue to point out that the changing
cases these costs will be compensated by the tax incentives granted
of laws overnight remains a challenge. The government had started
to taxable individuals who opt to apply the VAT split payment
talking about replacing the profit tax with a turnover tax, suggest-
mechanism from October 1 2017. However, even in this case there is
ing that in this way companies would pay their fair share of taxes.
room for discussion over how it will apply: if a taxpayer has taxable
Firms warned that such a dramatic change would hit Romania’s
profit during Q4 2017, but overall is in a tax loss position, will the
competitiveness and attractiveness to investors, potentially leading
5 percent profit tax reduction apply (on the nominal value of the
to insolvencies among local companies, and PM Mihai Tudose told
profit tax)? The VAT split payment ordinance does not clarify this
www.business-review.eu Business Review | October 2017
16 COVER STORY
aspect.” Other issues might emerge in practice as the implementation stage is short and companies might end up guessing how to apply the law. “As an example, how will the VAT split payment work in the case of payment compensations or third party payments? And these are just some of the questions that will pop up during a taxpayer’s dayto-day operations,” said the EY representatives. The Romanian Business Leaders (RBL) association claimed that the update to the VAT legislation will not solve the systemic issue of tax evasion. The RBL went on to say that hundreds of thousands of fair-dealing smaller entrepreneurs will be “choked” by the additional red tape, leaving them less time to focus on development and job creation. In a survey carried out by the National Council of Small and Andra Casu, EY Romania
Medium-sized Enterprises in Romania (CNIPMMR) 97.5 percent of responding companies said that the split VAT system would have a negative impact on their activity next year. The new VAT system has also been criticized by the main business associations representing the largest foreign investors in the country. For instance, the French Trade and Industry Chamber in Romania (CCIFER) has warned that the new system creates red tape that will hit both private companies and state-owned enterprises. “Romanian products and services will lose their competitiveness on the local and global markets and the economy will be burdened with new non-performing loans due to the wave of new insolvencies,” said the CCIFER about the risks of the split VAT system. Meanwhile, the Austrian investment community in Romania says it supports the government’s attempt to reduce VAT fraud, but warns that the swift enforcement of the new system could create unforeseen issues for firms. “On a broader scale, we will have to see if these additional ad-
Dan Dascalu, PwC Romania
ministrative burdens together with the expected additional cost of a VAT account could negatively influence Romania’s perception as a highly attractive investment destination,” Gerd Bommer, commercial counselor at Advantage Austria, told BR. He added, “Although Austrian investors generally support the Romanian government’s intention to further prevent VAT fraud, there is reasonable doubt that the measures chosen will have a sufficient cost-benefit ratio, if any at all. From an administrative point of view, they will be a huge burden for all the companies that have so far reported and paid their VAT obligations properly.” The authorities have designed a package of incentives for firms that will start using split VAT from October, such as profit tax facilities and an exemption from the payment of penalties for VAT debts to September 30, according to Dan Dascalu, partner at law firm D&B David si Baias, the law firm affiliated to PwC Romania. “It remains to be seen how the authorities are able to implement this system as a whole and respect the deadlines according to the law, as any breach could drive up litigation and demands from
Inga Tigai, EY Romania
taxpayers for interest payments for these delays,” said Dascalu in a conference.
www.business-review.eu Business Review | October 2017
COVER STORY 17
A TAXING ISSUE: ROMANIA’S REGIONAL PROFILE The low corporate income tax rate and fiscal incentives for companies doing research & development are among the key provisions that could help Romania catch the eye of new investors interested in Central and Eastern Europe (CEE). Andra Casu, director within the tax advisory department at EY Romania, cited the income tax rate of 16 percent and the tax incentives currently applicable for R&D (e.g. the additional deduction from the taxable base representing 50 percent of the R&D expenses incurred, a ten-year exemption from corporate income tax available to companies operating exclusively in the area of R&D) as some of the measures helping Romania maintain its competitive edge. But she says that there are other issues such as the political instability, many unannounced legislative changes and a very aggressive trend of tax inspections carried out by the authorities that Mihai Tudose, PM
could downgrade Romania’s attractiveness. “A temporary tax benefit may be deceptive if there is an existing record of changing the governing program over a short period of time and, generally, an increase in workforce taxation to cover some of the budgetary deficits,” said Inga Tigai, senior manager within the tax advisory department at EY Romania. Romania has struggled in recent years to increase its tax take as a share of GDP, and some of the new taxes rolled out overnight were intended to plug these holes in the budget. A report by the European Commission revealed that Romania had tax revenues of 28 percent of GDP, the second lowest rate in the EU, behind Ireland on 23.9 percent. In theory this should change by the end of the decade, when a massive overhaul of the tax administration agency ANAF should be completed. With a loan from the World Bank, the authorities want to develop a complex IT system for ANAF and move most of taxpayers’ day-to-day operations online. “From the point of view of the FIC, the announcement of new
Gerd Bommer, Advantage Austria
taxes overnight with a significant impact on the business environment is not a good thing. Companies have businesses and investments on the long term and such a fiscal policy is not wanted. Something we have been saying for 20 years, since the FIC was founded, is that measures of such importance need an extensive impact study and a real consultation with all the parties involved,” said the association representatives. Some amendments to the VAT system could also have a positive impact on the business environment. Manta of EY Romania says that the introduction of a reverse charge system for all imports would improve taxpayers’ cash flow. “Currently this facility is available only to certain taxpayers, but general applicability may increase Romania’s tax attractiveness,” said Manta.
BIG CHANGE IN INCOME TAX CONTRIBUTIONS PLANNED FOR 2018 The social security contribution system in Romania is poised to Ionut Misa, Ministry of Finance
undergo a major change from next year, with contributions moving from the employer to the employee. The minister of labor, Lia Ol-
www.business-review.eu Business Review | October 2017
18 COVER STORY
guta Vasilescu, said that this change would not generate additional costs for companies, as contributions will be cut from 39.25 percent to 35 percent. “There are many firms in Romania that don’t pay their contributions for employees; they deduct them from the salary but they
to 10 percent, but the reduction of this tax is still under review. The change would come less than a year after the government scrapped the cap of five months’ average pay from the calculation of social security contributions. Tigai of EY Romania said the removal of the cap had resulted in
don’t pay them on. Those employees don’t have medical assistance,
higher employment costs for companies and lower net incomes for
don’t benefit from these years in their pensions. All this made us
employees.
protect the employee,” said Vasilescu. “Contributions are withheld by the employer and the company
“This particular net salary ‘loss’ was felt in the months when employees were granted additional benefits, such as regular or annual
transfers them on to the state as your contributions. The state gains
performance bonuses. Employees whose monthly gross income
from this transfer by increasing the pension fund and the healthcare
exceeds the value of five months of the national average gross salary
insurance fund,” explained the minister. As a result of this move,
(namely over RON 15,655, as at February 2017) suffered a decrease
net wages are set to grow by around 4 percent, she added.
in their net income starting from the remuneration received for
In late September, some trade unions were claiming that the
February 2017. So, on a monthly gross income of RON 18,000, which
government was planning to bring in only a partial transfer of the
would have generated a net income of RON 12,940 (approximately
contributions from the companies’ side to employees. At the same
EUR 2,875) in January 2017, the decrease as of February produces an
time, income tax for individuals was to be slashed from 16 percent
annual ‘loss’ of RON 3,780 (about EUR 840),” said Tigai. She said that the removal of the ceiling came as a “shock” for the skilled workforce, due to its rapid enforcement, and the costs were covered in “firefighting mode” this year. However, Romania’s competitiveness in the region could be affected by this measure on the medium and long term, according to the EY representative. On pension funds, PM Tudose suggested in early September that contribution to the second pension pillar, which is managed by private administrators, should become optional. Under current rules, this pillar gets a mandatory contribution of 5.1 percent of the employee’s gross wage, while the rest, up to 10.5 percent, is funneled in the first pension pillar, controlled by the state. Around 7 million people are enrolled in the second pension pillar, which had assets of EUR 7.7 billion this summer. A third voluntary private pension pillar also exists, in which the state provides some tax deductions for contributors. This fund had assets of EUR 370 million at the end of June 2017.
www.business-review.eu Business Review | October 2017
20 HR
Firms struggle to find workers on tight labor market Romania’s private sector is registering demand for employees across the board, from welders and electricians to IT experts and agriculture and construction specialists. In an economy with an unemployment rate hovering around 4 percent, companies are exploring various options to increase their staff, ranging from the relocation of employees from other parts of the country, to offering vocational training for high school students and importing workers from outside the European Union. By Ovidiu Posirca covering the rent for unemployed people who find a job in a different city, but this program is still in the early stages. “In general, we see a clear problem in the mobilization and allocation of the available workforce. To be more specific, it has become apparent that a workforce is available in certain counties and regions in Romania, where companies are currently reluctant to settle due to missing infrastructure or other circumstances, while in other areas companies are struggling to find employees due to full employment. Furthermore, a high number of potential workers are currently employed in sectors such as agriculture and even the public domain, where their contribution leads to a comparatively smaller contribution to the national output,” Gerd Bommer, commercial counselor at Advantage Austria, told BR “Hence, it might be more beneficial for Romania to motivate them, through education, financial and fiscal means, to reallocate or Foreign investors say that fiscal solutions alone will not solve the pressure on the labor market
A
field of work, in order to optimize resources,” he added.
side from the tight labor market,
there are counties in the east and south that
companies are facing the challenges
are grappling with chronic unemployment.
Representatives of the foreign investment communities in Romania say that the scarcity of the workforce impacts companies of all
of the uneven development of the
country. Whereas employers in Bucharest and
retrain available resources to join a different
other cities in western Romania are frantically
SCARCITY OF LABOR IMPACTS FIRMS OF ALL SIZES
looking for staff to expand their businesses,
The government is trying to change this by
sizes, whether they have Romanian or foreign capital. “For next year, no improvement of the
www.business-review.eu Business Review | October 2017
HR 21
situation is forecasted. Manufacturing firms
needed for the parents, firms are continuing
try. FIC representatives say that politicians
are looking on their own for solutions to fill
to work with the public authorities in order to
should focus on the issue of demographics
their vacancies, either by recruiting employ-
create classes in which teenagers can combine
as the results will also be seen in two to three
ees from other regions of Romania or through
theoretical training with practical experience
decades.
workers brought from outside the European
at companies.
Union,” officials from the Romanian-German
“We will continue to contribute to this re-
“It is as important to reduce the migration of the workforce from Romania to other
form, involving companies in the updating of
states, and maybe, through a joint effort, to
school curriculums and their adaptation,” rep-
attract back some of those that moved away.
panies have few solutions if workers decide
resentatives of the French Trade and Industry
We don’t think fiscal solutions can solve this
to move to another EU member state where
Chamber in Romania (CCIFER) told BR. They
issue,” said FIC officials.
they are paid better. Meanwhile, the order
add that closer cooperation between parents
books of production companies in Romania
and teachers is needed for this system to suc-
TotalSoft, Liviu Dragan, says that Romania
are increasing due to growing demand from
ceed, while companies should also promote
still has a lot of people that can be employed,
international clients.
internships and training more actively.
despite the massive migration. He suggested
Trade Chamber (AHK Romania) told BR. The association says that Romanian com-
Raluca Penes, HR coordinator at Smartree,
Schools developed under public-private
Elsewhere, the founder of IT company
that those living on welfare in rural areas could be integrated in the workforce.
the HR consultancy, says that the medical
partnership have emerged in Brasov, Cluj,
field is still seeing a migration of workers
Fagaras, Timisoara and Pitesti – in industrial
to other countries, including nurses and
basins, around large companies or groups of
inhabitants of whom 4.5 million are working,
pharmacists. Meanwhile, the IT sector also
companies, said the CCIFER.
out of whom 1.5 or 1 million are in the public
continues to suffer from a deficit of staff.
“These were more or less successful
“In Romania there are 17-18 million
sector. It is almost impossible for a country
experiences, depending a lot on the level of
with such a small number of employees to
easy year for the recruitment departments.
involvement of the public partners along with
make significant strong progress. So all the
The opening of new work points by multina-
the companies,” said the CCIFER officials.
economy suffers,” said Dragan, during an
“In these fields we shouldn’t expect an
tional firms that are funneling investments
Bommer of Advantage Austria says that
towards Romania will continue to generate a
the organization has set up two dual educa-
gap between staff demand and the available
tion pilot projects in cooperation with the
supply,” said Penes. She added that wages
Romanian authorities in Bucharest and Cluj-
have continued to grow in the IT sector and
Napoca.
some firms are providing relocation packages,
pulse for the Romanian authorities to speed
to Cluj-Napoca.
up the development of a nationwide approach to vocational education that is currently being
One way to alleviate the shortage of skilled
Leaders Association.
COUNTIES WITH THE HIGHEST UNEMPLOYMENT *
“However, we see this as setting an im-
for instance for those moving from Bucharest
MAKING A CASE FOR VOCATIONAL TRAINING
event organized by the Romanian Business
discussed. We hope to see progress in this area sooner rather than later,” said Bommer. Solving the issue of the lack of employees
staff would be to steer more students towards
is also on the agenda of the Foreign Investors
the vocational training system. Although this
Council (FIC), whose member companies
process takes time, and a lot of convincing is
have created some 200,000 jobs in the coun-
Vaslui
10.38%
Teleorman
10.15%
Galati
9.66%
Buzau
9.44%
Mehedinti
9.31%
*at-end July 2017, only registered unemployed Source: National Labor Agency, ANOFM
www.business-review.eu Business Review | October 2017
22 IT
Bucharest is successfully riding the insourcing wave Between outsourcing, no-sourcing and insourcing, Bucharest, which recently saw the expansion of GE Power’s Grid Software Solutions (SWS) center, that of DB Global Technology and the opening of Fitbit’s new R&D center, is successfully trend riding. By Georgeta Gheorghe
end for the traditional offshoring industry in information technology outsourcing (ITO) and business process outsourcing (BPO), the study also acknowledged the shift in focus towards the global transfer of higher-skilled jobs, which is expected to become more dynamic. The study’s most recent edition expanded on that, pointing out that the global value chains are projected to grow, creating new offshore jobs. At the same time, experts have spotted that increasingly more global players are relying on insourcing. Far from simply being GE and Fitbit serve global markets from their headquarters at Aviatorilor 8
a trend reversal, this counter-trend sees companies transitioning back the development
sourcing of IT activities to external
O
very different, with the global outsourcing
advantage, which they transfer to newly-
service providers has seen a phenom-
market declining by almost 30 percent, to
established global centers of excellence.
enal and fairly consistent rise. For years now,
USD 77 billion in 2016. As highlighted by last
As highlighted by the recent opening by US
Romania has been a hot outsourcing destina-
year’s A.T. Kearney Global Services Loca-
wearables maker Fitbit of its new Bucharest
tion, with competitive advantages including
tion Index, where Romania still ranks as the
R&D center, the largest on the continent, as
a highly skilled labor pool with multilingual
fifth most attractive destination in Europe,
well as the expansion and launch of recruit-
skills, an attractive price-quality ratio and EU
automation is fast becoming the predicted
ment campaigns by DB Global Technology
membership. Currently, the country’s out-
game-changer and the outsourcing market is
and GE Power’s Grid Software Solutions (SWS)
sourcing sector employs more than 100,000
feeling the impact. As automation becomes
center, Bucharest is among the global destina-
people, most of them in the banking, insur-
more prevalent, many outsourcing markets
tions making the most of the shift in trends.
ance and financial services, followed by the
are projected to shrink, due to job loss caused
In doing so, Romania, a top global outsourcing
technology and telecoms sector and industrial
by technology taking over a large chunk
destination for years, is showing that it has
and consumer goods. In 2014, a time when
of business process outsourcing. The 2016
outgrown its condition and is helping major
the A.T. Kearney Index ranked Romania the
study singled out no-shoring, the process of
players redesign their global footprint.
fifth most attractive outsourcing destination
transferring business services, previously
in Europe, the global IT outsourcing market
conducted by humans, to anonymous data
stood at USD 105 billion, more than double
centers hosting cloud-based automated
GENERAL ELECTRIC, DEUTSCHE BANK BOOST THEIR PRESENCE
compared to 2004, and has kept a steady
processes, as the fastest growing global trend.
In August, GE Power’s Grid Software Solu-
growth pace, until recently.
However, while signaling the beginning of the
tions (SWS) center, established in Bucharest in
ver the past two decades, the out-
of core technologies and services in order to Two years later, however, the picture is
regain control and boost their competitive
www.business-review.eu Business Review | October May 20162017
COVER STORY IT 23 14
2011 as part of the global Grid Solutions (SWS)
“works on technical deliveries worldwide
our own software delivery centers was a natu-
center of excellence, kicked off a recruitment
for projects such as integration, software
ral step.” As it operates on a competitive labor
campaign upon moving into new headquar-
development and testing for major players
market, the company is focusing on offering
ter. GE Power’s Grid Solutions, employs over
in the energy markets of Europe, North and
incentives such as multicultural exposure and
19,000 people in approximately 80 countries.
South America, Australia, Africa and the
involvement in international projects, which
Middle East. Therefore, it is a major contribu-
it sees as key elements in building a strong
dent and CEO of General Electric Romania,
tor to energy grid stability, enabling energy
career, as well as offices in a state-of-the-art
Bulgaria and the Republic of Moldova, several
providers to respond quickly to grid demand
BREEAM Excellent certified building.
converging factors contributed to GE setting
fluctuations and to ensure security of energy
up their center in the Romanian capital.
supply. This tremendous role places our
technology center in Bucharest, opened three
“Thanks to their dynamic, highly-skilled and
center at the core of GE’s mission to become
years ago and has recently moved to new
growing IT market, the country, and particu-
a top ten software company in the following
headquarters, which includes a new research
larly Bucharest, have a lot to offer in terms of
years,” he added.
and development hub, a digital workplace
According to Cristian Colteanu, presi-
DB Global Technology, Deutsche Bank’s
Today the center has a team of 130 em-
floor and a state-of-the-art event venue. The
bilities,” Colteanu told BR. With around 4,000
ployees. “Since 2015, we have hired over 100
top draws for shareholders, namely the skills
IT specialists graduating each year, out of
people and are committed to keeping the
and talent of the local workforce, convenient
which 2,000 only in Bucharest, and 8 percent
same pace and continuing the recruitment of
location, the possibility for growth as well as
of Romania’s GDP coming from the IT sector,
digital specialists over the next two years,”
the strong quality of interaction, are still con-
Romania has grown into a major IT center in
Silviu Cretean, the center’s senior services
sidered the center’s major assets, Marian V.
the Balkan area.”
director said, at the opening of the company’s
Popa, general manager of DB Global Technol-
new headquarters.
ogy told BR.
innovation and further development possi-
The SWS center’s activity, supported by local specialists, has since expanded from a
“GE was and is still relying, to some ex-
After starting off with a EUR 10 million
European, to a global level. “During the first
tent, on outsourcing services. The extended
investment and initial plans to hire and train
two years, our team focused on supporting
growth expected for our Bucharest center is
500 people that would cover three areas, to-
the European business. Since then, the center
strongly focused on cost optimization, while
day the center has more than 800 employees
has evolved into a true global delivery center,
also providing sufficient flexibility to further
that cover ten areas and counting, Popa ex-
effectively supporting all regions worldwide,”
increase the center’s digital footprint,” Col-
plained. Moreover, 200 highly skilled staff are
Colteanu explained. Currently, the center
teanu told BR, adding that “for GE, creating
expected to join the team in the near future.
www.business-review.eu Business Review | October 2017
24 IT
hire, by the end of this year, more than 50 cloud and big data engineers, reaching almost 500 people at its Bucharest site. Other companies that opened R&D offices in Romania are SAP, Ixia, NXP, and homegrown global cybersecurity player, Bitdefender. Fitbit entered the market months after completing the purchase of local startup Vector Watch, which rather than serving to expand its range of products, served as a gateway to the local IT market. The startup, whose CTO Andrei Pitis is now heading Marian V. Popa, DB
Cristian Colteanu, GE
the new facility, as well as serving as VP of engineering for Fitbit, had developed from scratch a 30-day battery life smartwatch, sold in 27 countries. In opening its new facility,
“I think that all the qualities that attracted
completely replace outsourcing, the former
built around the startup’s core team of 30, Fit-
us to Bucharest contributed strongly to the
is driving fundamental changes within the
bit plans to capitalize on the team’s expertise
continuous growth of our center,” he said.
way the company operates. “For years, the
in developing innovative technology in the
industry in general has outsourced a number
field of power consumption. “The team’s
tional network of Deutsche Bank innovation
of services to specialized companies and
knowledge around low-power technologies,
labs in New York, Silicon Valley, Berlin and
this was valid also for the banks. Now, the
the ability to have low-power OS and third-
London. “Bucharest is one of the four ap-
trend is reversing, where collaboration with
party applications - those are some of the
plication development centers that DB has
outsourcers still continues, but at the same
things that they’re bringing to the table,” CEO
worldwide,” Popa explained. According to
time, core technologies and knowledge are
James Park, who attended the opening, told
him, solutions developed in Bucharest have
transitioned back into the bank. We are a core
ZDNet.
been successfully adopted within the compa-
part of this activity as our main activity lies in
ny. “We have developed certain areas where
internalization and knowledge transfer,” he
of the wearables market, already employs
we imposed a benchmark, our methods being
explained.
around 100 designers, software engineers and
The Bucharest hub is part of the interna-
accepted and transferred also to the other
According to Popa, it is challenging to find
The company, one of the global leaders
product managers in Romania, and is eyeing
centers,” he said, adding that the possibility
the right people, “and it is even more chal-
to tap deeper into the local talent pool. “Hir-
for the Bucharest center of becoming a center
lenging - once they become experts - to retain
ing smart people everywhere is a challenge,
of excellence is still wide open. It is the open-
them. This can be achieved through respect,
and I think there’s a unique talent in Bucha-
ness to learn, collaborate, as well as their re-
openness, trust and collaboration as well as
rest that [we] will tap into,” Fitbit co-founder
sponsiveness to coaching and mentoring, that
transfer of responsibilities and empower-
and CTO Eric Friedman said at the opening
allow Bucharest experts to develop advanced
ment,” he argued, “as well as more involve-
of the new center. According to Friedman,
financial solutions that are later implemented
ment in international bodies and structures.
the country’s human capital and the growth
on markets that are more developed than the
We take a lot of pride in the fact that we have
potential of the tech sector are two of the
local one, Popa explained.
more and more Romanian experts in interna-
major draws of the Romanian market. “What
tional forums, taking important decisions.”
I find most impressive and reassuring is the
“By providing a strong base for innovation
active number of young tech entrepreneurs,
in the region and helping to develop the local fintech community, the center is supporting
FITBIT TAPS INTO THE MARKET
kids in their early 20s, who have the imagina-
our ambitions to become a technology-led
In September, US wearables maker Fitbit
tion and power to challenge a global start-up
company,” Kim Hammonds, COO and mem-
opened its biggest European R&D center in
ecosystem,” Friedman recently told Financial
ber of the management board of Deutsche
the same building hosting GE’s new head-
Times, adding: “The evolution of the tech
Bank said at the opening of the new head-
quarters, in central Bucharest. In doing so,
start-up scene in Romania is highly positive.
quarters. Moreover, Hammonds explained,
the company is following in the footsteps of
New investment funds and business angels
the center was supporting the company’s
software giant Adobe, who built in Bucharest
are supporting more and more tech-based
drive to “bring technology back into the bank,
over a decade ago its largest R&D center out-
start-ups.”
instead of contracting thousands of vendors
side of the EMEA. After filling around 80 tech
around the world, in order to derive increased
vacancies last year, in May Adobe Romania
plans to support a local startup accelera-
competitive advantages.” According to
director of engineering and site leader Cris
tor and to collaborate with local technical
Popa, although insourcing is not expected to
Radu told BR the company was planning to
universities.
The wearables company has also disclosed
www.business-review.eu Business Review | October 2017
25 - ADVERTORIAL -
Waters Corporation Opens a New Romanian Software Development Center in Brasov Waters Corporation (NYSE: WAT), the world’s leading specialty measurement company, has pioneered chromatography, mass spectrometry and thermal analysis innovations serving the life, materials and food sciences for nearly 60 years. With approximately 7,000 employees worldwide, Waters operates directly in 31 countries, including 15 manufacturing facilities, and with products available in more than 100 countries.
U.S. – based, specialty measurement
Software is a critical component of the
company Waters Corporation today of-
company’s computerized analytical technolo-
ficially opened its new Romanian Software
gies which make chemical measurements and
Development Center in Brasov with a
provide scientists with information about the
visit from its Chief Executive Officer, Chris
chemical and molecular composition of their
O’Connell. The Center is home to more than
samples.
160 software engineers, project managers, product owners, software architects and
In his remarks to employees, General Manager,
support staff who develop and test software
Gheorghe Neagu, told employees “We are very
for the company’s analytical technologies
proud of the level of skill and talent we have in
used by scientific laboratories involved in
Brasov. The investment Waters has made in this
life, materials and food sciences. Romanian
state-of-the art facility recognizes that talent
Software Development Center in Brasov is,
acknowledges the importance of the work we do
by numbers, the number five facility in the
and demonstrates a commitment to Brasov as a
world for Waters, as an operational site.
corporate center of software excellence.”
At an event marking the official opening of
Waters software engineers are skilled in the
the new facility, O’Connell addressed em-
principles of Agile software development and
ployees by saying “Innovation is at the very
the use of tools including C# to C++, Java, Linux,
core of what we do, and I’ve used this oppor-
mobile and Amazon Web Services®. Agile is an
tunity to see in-person the tremendous drive
umbrella term referring to methodologies, tools,
and commitment of the team in Brasov to
techniques, practices and frameworks that
adopt new ways of doing things, to pioneer
enable companies to successfully and quickly
new techniques and to do whatever it takes
deliver software by meeting their customers’
to deliver benefit to our customers.”
expectations while focusing on high quality. All photots: Laura-Madalina Dascalu & Diana Balla
www.business-review.eu Business Review | October 2017
26 TELECOM
Huawei prepares ground for global infrastructure shift to 5G Bike-sharing systems powered by the internet and payment in physical stores by phone are ubiquitous if you have a chance to get to Shenzhen, the mega city of 18 million just north of Hong Kong. From its massive campus in the city, representatives of Chinese telecoms group Huawei said this was just the beginning of the revolution fueled by 5G that will reach some 100 billion connections by 2025. By Ovidiu Posirca
Huawei has invested USD 600 million in 5G research to date
C
onnecting anything from homes to
of the 5G era and information products can
& development efforts are crucial for the
cars and parking systems to the in-
be transmitted 100 times faster than with
deployment of 5G. The company has 15 such
ternet will create a surge in network
4G,” says David Harmon, vice -president,
centers around the world, focused on the
global public affairs, at Huawei.
specific skills of the workforce from various
traffic and Huawei is aiming to turn this tide of data into valuable business going forward. “The mechanics of the industry, whether
regions.
THINKING BIG ON R&D
“We have a number of research centers
it is transport or energy, are going to be con-
With more than 60,000 employees in Shen-
in India, due to Indians’ programming skills,
nected to the internet. (…) We’re on the verge
zhen alone, Huawei says that its research
whereas Europeans are excellent software
www.business-review.eu October Business Review | May 20162017
COVER TELECOM STORY 27 14
developers,” said Harmon. In Russia, for ex-
working with 500 telecom operators across
from the rich tree branches. I was told that
ample, the company has a mathematics and
the world, including the four main players on
Ren Zhengfei, the 72-year-old founder of the
algorithms center.
the local market: Orange, RCS&RDS, Telekom
company, was working in one of them, along-
and Vodafone.
side the group’s top management. In another
“We are always looking for expertise in the field of research. For example, we have
“When it comes to the technical specifi-
part of the campus is a building that looks
arrangements with a small unit in the Univer-
cations that are agreed, Huawei is going to
sity of Melbourne that has a high capability
be ready to try and win some 5G business
when it comes to developing energy-efficient
in Romania with the key companies,” said
over 62,000 patents authorized to date and
products,” he added. Harmon says that the
Harmon. The Chinese behemoth has invested
close to 40,000 patent applications have
staff levels across Europe are set to increase
some USD 600 million to date researching 5G
been made outside China.
by 1,000 per year, although he did not say
technologies and company officials say that
Africa, the Middle East and South America
how much of this will be in Romania.
the next critical step is the official launch of
are among the markets in which the company
technical specifications.
is implementing some of its solutions, such
Locally, Huawei has launched an enterprise global service center following a EUR
Harmon added that 5G standards should
similar to the White House. On development, Huawei says that it has
as smart city initiatives, airport communica-
10 million investment. The Bucharest-based
be launched by the global body 3rd Genera-
tions infrastructure and security systems
center, which opened earlier this year, will
tion Partnership Project (3GPP) by March
for oil pipelines. Designing prototypes of
be linked to similar facilities in China and
2018. “5G should be up and running by 2020,”
airplanes and virtual crash tests for new
Mexico.
he noted.
vehicles are also in the company’s portfolio.
Huawei invested over USD 48 billion in
Some telecom executives in Romania
R&D operations between 2007 and 2016. The
have cautioned that while the next telecom
agement in large cities. Virtual bank tellers
company says that 80,000 employees out
standards could become available by the
and telemedicine are other fields in which
of its global headcount of 180,000 are R&D
end of the decade, it will take some years
Huawei has developed services.
engineers.
until a critical mass for household consum-
The firm showcases solutions for traffic man-
Ten students from Romania and the Re-
ers is reached. It all depends on the range of
public of Moldova were also able to find out
started to push its consumer division with
products and services that are rolled out once
more about the company’s strategy as part
products such as smartphones, tablets and
5G is here.
of a global CSR initiative through which they
Although in recent years the firm has
saw first-hand Huawei’s University and the
laptops, its bread and butter remains its
campus hosting its core divisions.
telecom equipment division, which generates
SHENZHEN’S BLACK SWANS
most of its revenue. Growing the enterprise
Once a city built on its massive manufactur-
division seems to be one of the company’s
ing facilities, Shenzhen’s skyline is crowded
Huawei on its own. The company has teamed
priorities going forward.
with ever growing office towers. Communist
up with large technology groups such as Ger-
All these initiatives are not carried out by
party officials have gone on TV to say that
many’s Siemens, American Honeywell and
7.8 percent of total revenue, which stood
the country has to gradually move its eco-
Canadian Bombardier on joint initiatives.
at USD 75.1 billion, last year. Close to 58
nomic focus from production to services. As
percent of the revenue came from the carrier
manufacturing costs go up, companies might
international conglomerates, Huawei is also
business, and 34 percent from the consumer
decide to start new plants in other parts of
making investments in start-ups, but this
division. Just recently, the media reported
Asia. Even Huawei has said that it has moved
activity seems to have been carried out rather
that Huawei had become the second big-
its manufacturing capacities from Shenzhen
discreetly.
gest smartphone vendor, surpassing Apple,
to northern China.
Harmon says the enterprise division made
which was close to launching its new range of phones. In the carrier department, the company is
Walking through Huawei’s campus, you
Aside from business collaborations with
“Huawei seeks to invest in ICT companies up to a level of 20 percent. (…) We have
can see three black swans in an artificial lake
this early-stage investment division,” said
overlooked by trees and buildings creeping
Harmon.
28 ENTREPRENEUR
From a family business to an agency with one foot in France For Ruxandra Serban, founder and CEO at Erka Synergy Communication, setting up her own business came as a natural step, just as her parents followed their entrepreneurial path many years ago. With a cumulated turnover since 2004 of EUR 18 million, Serban made her entrance on the French market last year. Her agency is now ranked among the top 25 agencies in Romania. By Anda Sebesi
www.business-review.eu Business Review | October 2017
www.business-review.eu Business Review | October 2017
ENTREPRENEUR 29
How did you enter the Romanian business scene and when?
city I lived in. Initially I suggested to them to
been working since 2005 or 2009, the mo-
launch together a subsidiary in Bucharest, but
ment when they launched their first shop.
I founded Erka back in 2004, but I made my
unfortunately it didn’t happen. So, I decided
entrance in the business world since child-
to call the shots and do what I wanted – to
hood. I can say that I have had the chance to
launch Erka, a BTL agency at first. Today it
be a second generation entrepreneur, as my
is a 360 degree agency with 33 specialists in
parents started their own business back in
online and offline communication.
1991. At that time, businesses were seen as pejorative, proof of failure rather than suc-
How difficult is for a Romanian company to go international and what are the main obstacles it faces? How difficult was it for you to make this step? I decided that my agency from France should be a French company. It is easier from both
es. Together with them, I had the chance to
Recently Erka extended its operations in France. What was the reason behind this move and what are the main services that it offers on the French market?
attend different fairs, rounds of negotiations
I decided to launch an agency in France
become skeptical at first, but in France, like
with suppliers and business partners and get
because I wanted a larger “playground”: more
in Romania, quality services, promptness and
involved in launching their shops. I saw them
clients, more competitors, more performance
equity are “musts” for me. I have a double
working from 7 am to midnight. I liked get-
and more creativity. It has a similar port-
responsibility in France: that of increasing the
ting involved my parents’ business, but most
folio of services as in Romania: integrated
business of Erka and of contributing to the
of all, I had the opportunity to hold all the
marketing and communication services
improvement of Romania’s image there.
positions within my parents’ company: from
(strategy, creation, digital marketing, print
the purchasing department to sales. During
and production). At present, 70 percent of
cess. The truth is that my parents became entrepreneurs under the stress of circumstanc-
that time, I instinctively gained a lot of professional experience without
commercial and administrative perspective. It is well known that Romanians do not benefit of very positive image capital abroad. People
What was the most difficult moment for your business and how did you manage to surmount it?
putting in significant effort.
The most difficult moment for Erka
My entrance to the business
was back in 2015, when one of our
world came as a natural step: after
customers at that time, Domo, exited
graduating my studies in France,
from the market. It was a double
I came back to Romania with the
shock that unsettled us a lot, but
intention of launching my own
it also made me more mature and
business. And thus, Erka material-
forced me to make much more stra-
ized in the summer of 2004. Also, it
tegic decisions for Erka. Today, we
is not by chance that most of Erka’s
are ranked among the first 25 agen-
customers come from the retail sector. Adver-
the services sold in France are generated in-
cies in Romania and we have a market share
tising gives me the opportunity to combine
house in Romania. Meanwhile, the Romanian
of about 1.5 percent.
the entrepreneurship with creativity. I can
team benefits of the experience and skills of
say that entrepreneurship is in my DNA. I like
the colleagues from France. I chose France
the unconventional and in many integrated
because it is the European center of creativ-
campaigns that I proposed to my clients over
ity in fashion and the country where there is
time, there has always been an unconvention-
a big effervescence in the start-up world and
What are your plans? Do you intend to make acquisitions on the local market? How do you intend to develop the French subsidiary of Erka?
al component that made the difference.
digital marketing. Plus, retailers like De-
For 2017, I intend to enhance the digital
cathlon, Sephora or kiloutou have launched
department. At present we grew our number
Why did you decide to launch such a business in Romania?
exceptional retail experiences there. This
of specialists from 4 to 15 while the number
enables us to give a fresh air to our services,
of clients and the turnover generated by the
After my graduation, I needed to choose
especially when it comes to online strategy,
digital division has doubled so far. I estimate
between either investing in my family’s
customer experience, fidelity and events. We
that it will triple by end of this year. In addi-
business or getting a job in a large company.
will be able to propose marketing automation
tion, this year I intend to offer the opportu-
But soon, I realized that both options didn’t
campaigns and data oriented strategies in the
nity to my employees to become shareholders
resonate with me: I couldn’t develop as fast
near future to our clients.
of the company, a step that will be made soon. As for next year, we intend to offer our
as I wanted to, I could not make my own decisions and reporting to my superior was
Who are your clients in France?
clients marketing automation services and
something I couldn’t avoid in a large com-
We address all the clients as we do in Roma-
to continue to offer disruptive solutions for
pany. It was exactly what I didn’t want to do.
nia, from start-ups to multinationals. I have
the Romanian market, mainly in the digital
During my stay in France while completing
always liked to come with less conventional
sector. They will help us offer 100 percent
my studies, I worked for a BTL agency in
solutions and mostly we have had very good
measurable and effective solutions for our
Paris that had a subsidiary in Strasbourg, the
results. We have clients with whom we have
clients.
www.business-review.eu Business Review | October 2017
30 ADVERTISING
Cross-learning: applied by 2 Romanian agencies Departments learning from one another, specialists on a team teaching and sharing their knowledge with colleagues, teams or other agencies part of the group: the cross-learning technique is being applied more and more with great success, as shown by the following two Romanian agencies. By Romanita Oprea which they accumulate knowledge implies a process of perpetual learning. At the same time, according to Roxana Memetea, managing partner DDB Romania, stereotypical advertising roles don’t exist anymore and have been replaced by the need for specialists who can work in an integrated system. This means learning every day, shared experiences between specialties and following the best practices to keep up to date with the strenuRoxana Memetea, DDB Romania
R
Georgiana Dragomir, Grapefruit
ous rhythm of things. “The more I think about it, the more I realize this is not an idea, but a consequence of the way the market and
ecently, the digital agency Grape-
tor at Grapefruit. The agency doesn’t want
the new generations have evolved. We have
fruit implemented the career plan
to stop here. Its members plan on creating
two types of specialists: those who developed
(a complex process for everyone to
more cross-learning programs and exercises
during the ATL period and those who are
grow at a fast pace with quarterly objectives
and even convincing their clients to join in
digitally native. Both types need to grow and
in different areas: team, learning, authority,
and learn. According to its representatives,
expand beyond their area of expertise, since
advocacy etc.). With this technique, everyone
Grapefruit already has micro-cross-learning
advertising has stopped being all about TV or
in each department had the chance to learn
sessions in its design department.
the Internet, and started being about creative
new skills. Spreading the learning process
“In terms of HR, we are approaching the
ideas that meet consumers’ needs and deliver
across different departments was the best so-
learning process from two sides: firstly we
results. The agency we are part of, the group,
lution to keep all employees up to date on all
encourage our colleagues to grow and keep
is based on a philosophy of always learning
new trends, but also to gain cross-skills. And
themselves engaged. Secondly, we offer a
and developing our skills, thus we always take
the results didn’t take long: a three-month
growth environment for future candidates
part in trainings to help us become better at
Photoshop beginner’s course, created by one
that want to join our team. On the business
what we do,” explained Memetea. How does
of the agency’s UI/UX designers took place, in
side, it enables us to tackle new and challeng-
it work? Once every two weeks they organize
which a tester, a front-end developer and two
ing trends/technologies beyond just theory.
meetings between mixed teams in which they
content employees participated. Furthermore,
All the learning that we do has a practical
discuss a certain topic, then they hand out
there have been other similar cross-learning
outcome that can be applied in our clients’
a brief regarding the topic they discussed.
courses regarding Facebook learning, chan-
projects the minute the team finishes a learn-
Every team presents its ideas and solutions,
nel strategy learning, Google Analytics and
ing session,” concluded Dragomir.
while receiving feedback and they all discuss, share opinions and build on ideas. “These
proper estimation of a project, all of which have finished or in progress. “Now, our col-
ALWAYS IMPROVING YOUR SKILLS
seminars work wonders, people exchange
leagues are more independent when it comes
Another agency that is putting a lot of em-
knowledge, they come up with ideas which
to small tasks, but the most important thing
phasis on learning is DDB Romania. They had
are integrated and coherent. These solu-
is that they understand why colleagues made
the idea of spreading learning through the
tions would have never happened if only one
some proposals and their way of thinking,”
departments after feeling a need to change
department worked to solve the brief,” said
said Georgiana Dragomir, managing direc-
the business model and that the manner in
DDB’s managing partner.
www.business-review.eu Business Review | October 2017
32 ADVERTISING
Local communication agencies powering regional and international projects Going international is not a dream anymore, but a reality. The Romanian advertising industry is growing and more and more international clients are taking notice, with successes pouring in. BR spoke to some of the agencies at the helm of this accomplished expansion. By Romanita Oprea as Mondelez, TCC, Colgate-Palmolive and Renault Commerciale Roumanie. Furthermore, there are other clients for whom the agency’s teams manage on-demand projects based on different campaigns they run. The main services offered include strategy and creative services, but also event management. On its turn, according to its representatives, SmartPoint started its international expansion in 2006, with the opportunity offered by a new client to communicate on a regional level. “For a global brand in the tech industry, it was hard to handle all the countries in this Irina Pencea, Jazz
I
Octav Stefan, SmartPoint
part of Europe one by one and its communication needs matched the capabilities of the recently established agency. The founders had
f a few years ago only the multinational
ated a lot of positive feelings considering it
previous experience on the regional markets
agencies were given the chance to pitch
was a premiere: a Romanian agency that was
from executive positions in the IT&C industry,
their ideas for regional or international
not part of a larger company would sign an
having worked with both partners and media.
reach, nowadays more and more local, inde-
international campaign. Then, this was also
Another reason for the start of the partner-
pendent ones are starting to cross regional
something to be proud of, as that agency was
ship was the industry and technical knowl-
and international boarders, with creative and
actually us. In 2009, our first project was
edge needed to support the communication
smart strategic campaigns.
about developing spectacular displays for our
activities. Despite the limited market size in
client. Once we delivered the ask – concept,
the region, compared to central and western
local advertising agency to cross country
simulations, 3D, mock-ups - these clients
markets, the industry specific, market context
borders was “All the women in every woman”
based in different countries chose our agency
and media landscape are very much different
for HAME, in the fall of 2012. Today, agen-
to manage the production services as well.
from country to country. It took an in-depth
cies such as pastel, SmartPoint, Jazz, etc., are
That is how our first international project
knowledge of how the business works in each
creating successful campaigns for the CEE
turned into a campaign that included export-
country and how media relates to brands to
region.
ing ideas and sending cargos with displays to
create specific strategies, that would lead to a
One of the first campaigns created by a
several countries in Europe,” declared Dana
successful communication,” explained Octav
tionally, pastel counts today almost 9 years of
Nae Popa, managing director at pastel. It
Stefan, PR Manager SmartPoint. Ever since,
working with both international and re-
was this first project that taught the agency’s
SmartPoint works with NVIDIA in Romania,
gional clients, managed locally. At first, pastel
members a set of very important aspects:
Bulgaria, Serbia and Croatia.
implemented communication campaigns
from designing a product that would work
run by companies who have expanded their
for different retail patterns, to developing the
BEGINNINGS
business in Romania. “Once we managed
right documentation to send products abroad
Established in 2005, SmartPoint is, according
both the concept and strategy locally, these
and to manage the production process of the
to its representatives’ statements, the largest
companies considered it was best suited for
materials.
independent communication consultancy
Already experienced in working interna-
us to manage their regional communication as well. The first international project gener-
At the moment, pastel has clients for whom it developed regional campaigns, such
in Romania, covering regional markets in SE Europe. The agency’s headquarters is in Bu-
www.business-review.eu Business Review | October 2017
ADVERTISING 33
charest and it has another office in Belgrade,
“Merita sa faci un pas inainte”
coordinating the operations in Adriatic region
(It’s worth it to take a step
– Serbia, Croatia, Slovenia, Bosnia and Monte-
ahead): the swimming lessons,
negro, and also has a presence in Bulgaria.
the tailor shop and the driving
“The regional business took a fast pace
school. The campaign created by
growing curve from 2008, with the start of
the advertising agency Jazz, was
new partnerships on the Serbian market. In 2
also exported in Hungary, from
years, the local business in the entire region
concept to creation,
was established and soon after, the interna-
“The success with Provident
tional business brought in about 10 percent of
confirms to us that it is not the
the total SmartPoint business. Now, this share
status of a multi-national agency
has grown to more than 20 percent of the total
that makes the difference, but
business. We have multiple clients from all
three factors: the universality of
industries in each country and also regional
an insight, the courage to chal-
clients. In PR, we provide strategic consul-
lenge the creative patterns of
tancy, media relations, product communica-
the category and a hand in hand
tion and event management to tech clients
partnership with a client that has
such as NVIDIA, Epson, Kingston, Nordeus,
the same ambitions and standards as us,” said
respect, we look more into ways of attracting
Total, Reckitt Benckhiser, Carlsberg and Bei-
Irina Pencea, managing partner at Jazz. On
new clients and expanding each business ac-
ersdorf. Nordeus is a different model and we
their turn, representatives of the marketing
cording to its market context. We have in plan
are handling communications across multiple
department of Provident Financial Romania
to open local operations in other countries in
countries in Europe through our partner inde-
explained their decision by declaring that:
the region,” said Octav Stefan.
pendent agency network Comunity.pro.” said
“No matter the age, the nationality or the pre-
After several cases, such as the latest with
Octav Stefan, PR Manager SmartPoint.
occupations, people make the effort of taking
Provident, the Jazz team realized that indeed
a loan for the joy they will feel when they
they could move on to thinking regionally,
ZOOMING OUT
will put their idea or materialize their or the
even though they are not part of a regional
Taking a better look at the larger picture, Irina
loved ones’ desires. We chose the platform
network. “It felt great when we had our first
Pencea, managing partner Jazz, considers
proposed by Jazz because it’s anchored in this
international confirmation with the Gold
that today we are all citizens of the world,
universal insight, available for Romanians,
award in Cannes for Save our songbirds cam-
especially in terms of exposure to media. “I
Hungarians and any other nationality.” “Hun-
paign, but it feels just as good to see that our
have in my regular news feed content from
gary is a country like Romania in terms of the
quest for human insights and authentic sto-
other continents next to local, I buy clothes
small loans category, hence the fit of the cam-
rytelling works beyond Romanian borders,”
from international brands and obviously, I see
paign for their potential customers. But most
declared Irina Pencea.
ads from different countries and continents.
of all, the joy that you feel when you realize
The majority of the urban populations in most
that you made the right decision to take the
good moment for Romania to take a more
of the countries are interconnected in many
loan is what makes it worth it. The mother of
decided step towards the regionals and going
ways. But, in essence, for modern societies,
the little swimmer who feels like a fish in wa-
international, as the trend that we are seeing
humanity is rooted in the same needs, wishes,
ter thanks to swimming lessons she could pay
seems to be working really well in its favor.
desires, frustrations, in similar lifestyles and
with a Provident loan, can just as well be a
“There are multiple opportunities in indus-
daily routines,” said Pencea. And, in this
Romanian mother or a Hungarian mother. Or
tries related to new technologies, gaming and
context, “whenever we are given a business
any other European mother. It is something
e-commerce, industries where the country
problem, we look at the human side of it, we
universal that parents feel when they are able
and culture barriers are less prevalent. We
seek for the human insight. Most of the time,
to offer the conditions for their children to
have developed regional campaigns for one
it is a universal insight that is valid in the ma-
flourish,” explained Pencea further.
of the most productive gaming companies in
Taking a step back, it seems that it’s a
Europe, Nordeus, for e-commerce players and
jority of the countries of the modern world. It
our regular clients. We see a good potential in
clients saw an opportunity in exporting our
EYES ON THE FUTURE – INTERNATIONAL GAME
creative work developed in Romania to other
However, do all of those successes make the
one. They are open markets and this is a good
countries,” added Pencea.
agencies concentrate on a regional level now?
opportunity, not only for us but also for the
was a natural consequence that some of our
both the regional market and the European
While it concerns SmartPoint, the Adriatic
local communication landscape in general.
collaborations and numerous creation and
office is a fully-grown business with about 20
The borders are thinner and we have many
efficiency awards, the successful Provident-
employees coordinated by a local manager,
talents in the local market to design and de-
Jazz partnership continued also in 2017, with
with a separate growth plan than Romania
ploy large-scale communication campaigns,”
a series of new executions, under the platform
and based on its own investments. “In this
said the SmartPoint representative.
In fact, after more than four years of
www.business-review.eu Business Review | October 2017
34 INTERVIEW
Count Tibor Kálnoky to put rural Romania on worldwide tourist destination map Count Tibor Kálnoky’s passion for restoration and nature connected him to the Prince of Wales himself − it was the Count who indirectly convinced the British heir to the throne that buildings in the village of Valea Zalanului (Covasna) were worth a second chance at life. He now manages Prince Charles’s properties in the area, serves as the Prince’s advisor and trustee of the Prince of Wales Foundation in Romania, as well as running his own tourism business. By Daniela Oancea
ABOUT tibor kálnoky Also a Knight of the Order of St John, he returned to Transylvania after the fall of communism, trying to connect with an 800-year family history. He fell in love with the place, sought restitution of the expropriated family property in Székely and has since dedicated himself to supporting the conservation and revitalization of Transylvania’s natural and cultural heritage.
of Wales, to buy a property in Valea Zalanului (Zalanpatak), Transylvania? When did the two of you meet? I think it was him. He showed a lot of interest in Romania from the very start. He gave a famous speech in England in 1988 denouncing Ceausescu’s systematization plan. (Thousands of villages were to be literally destroyed and replaced by agro-industrial centers.) It was one of the Prince’s early, almost political speeches he gave, and he was one of the very few back then to denounce Ceausescu’s political action. At the end of the 90s, he was invited to make an official visit, he went to see the countryside, and he fell in love with it. He’s been coming back regularly ever since. We met after he started to come to Romania and then later he decided to get a property here. I didn`t need to convince him; he wanted a place of his own in Romania, and when he saw what we had done in Miclosoara, he wanted to share the concept. He purchased a house in Viscri, which has since become the base for his foundation in Romania, and then
What made you come and stay in Romania? You spent most of your youth in the West; was it hard for you to get used to the Romanian ways?
grade. However, in the last few years, my kids
in Valea Zalanului, for his own use. These are
have been going to school abroad, for their In-
the only two properties His Royal Highness
ternational Baccalaureate Diploma Program.
owns outside of Great Britain.
My decision was an emotional one; it was cer-
was of enormous help, in the sense that I was
tainly not in order to come and make money.
raised in a way that everything was either
I came to Bucharest in 1997 with a job in the
black or white. You ask a question and receive
pharmaceutical business and then started
an answer and you can go with that. Here, in
Has the Kálnoky Foundation succeeded so far in its objective to protect, restore and promote the multiethnic cultural heritage of Transylvania?
renovating houses up in Miclosoara and
Romania, it is a bit different. You need much
These are ongoing tasks; they never end. I
turning them into guesthouses. Then I quit
more to interpret situations, as there is more
think that one milestone will be the restora-
my job in Bucharest and settled in the village
grey in each case. However, there are fantas-
tion of Miclosoara castle, which was a huge
of Kőröspatak (Valea Crişului, Covasna). I’ve
tic opportunities for everyone.
project and has just recently been completed.
To be honest, my wife is from here and that
lived there ever since with my wife and kids, who studied there until their 9th or 10th
It was done with the help of EEA grants from
Was it you who convinced Charles, Prince
Norway, Liechtenstein, Iceland and Romania,
www.business-review.eu Business Review | October 2017
INTERVIEW 35
and with the foundation’s funds that we had
he transforms himself into a gymnast, an
of Wales’s Foundation in Romania. I am a
to raise. We have a nice cultural objective
acrobat, doing things that we could never do,
trustee in his foundation. Its activities in Vis-
now in Miclosoara with the establishment
and that makes one think twice.
cri were developed along with his property
of the Museum of Transylvanian Life at the
Our guesthouses in Valea Zalanului were
in the center of the village, and it has become
castle, which will attract a large number of
pretty busy this year, though we do not
the seat of his foundation. There are a lot of
tourists, a broader public. Up to now Micloso-
practice mass tourism. Our offer is for the
activities happening there, workshops main-
ara and Valea Zalanului have attracted well
well-travelled individual. Ours is not the typi-
ly, training sessions, education, supporting
traveled foreigners from abroad, as a niche
cal tourist-pension or hotel, where you get a
the locals in learning traditional, but also
market. However, through these VIPs, the
key and everything is standard, but nothing
new trades and skills. Every year we have
whole country benefited from a positive im-
special. Our offer is more like an experience.
almost a dozen different training courses and
age; it was more PR for the country than local
People have described the experience as one
workshops for locals and with people from
tourism. We have been in the foreign press
from an Agatha Christie novel, but hopefully
abroad, and it works very well. Everyone is
a lot, and we contributed to putting rural
without the murder! It’s more like a 19th
welcome and there are some activities you
Romania on the worldwide tourist destina-
century atmosphere. Our visitors tend to be
don’t even have to pay for. Anyone can apply
tion map. I can say that the repercussions of
educated, outgoing, open minded, and they
for free participation.
our activities are larger in terms of Romania`s
get on together and dine together like in a
image than just locally.
Christie novel. The atmosphere is the same.
possible for everyone in the villages to make
It’s not about luxury, but more about an au-
a living, and to continue their life here, to
with us for ten days, and we had five days
thentic experience, of being in a place off the
help stop the exodus from rural Romania.
of riding. They were absolutely in heaven.
beaten track.
It’s not magic what has to happen to make
Our concept is simple. We want to make it
Was it a Kálnoky who set up Transylvania’s first glassworks in the 16th century and imported craftsmen from Bohemia and Murano, creating a village in the forest? Could this activity be revived? Yes, that was in Valea Zalanului where the Prince of Wales now has his property. This property belonged to the former overseer of that manufacturing business. It has since ceased to exist; it could now be revived as an artisan workshop but not as a functioning glass factory. We are now supporting some craftsmen in the village, mainly a cheese maker, a carpenter, etc. But the village population is small, about 100 people. You wanted to know if I stayed in Romania throughout the year, and now you see why. We have so many activities: the restoration projects, the guesthouses; we organize riding treks and riding tours. We had a visitor group recently come all the way from Australia, who stayed
people stay; they just have to be able to earn
It’s very rewarding for us when people come
higher incomes. For that, we think that tour-
And then we have a social project which is
How has your role changed in relation to the Prince of Wales and his foundation?
spectacular, and time-consuming – teach-
In the first decade of his visits, the Prince
are not going to be built in rural places with
ing Roma children how to ride and practice
of Wales came to Romania just on holiday;
small populations – so the right type of tour-
equestrian vaulting. We thought about those
then he got more and more involved, decid-
ism could help people earn extra income.
kids and what they would like to do and we
ing to purchase his own property, those in
Most of them make a living from their farm,
tried with the horses and they happened to
Valea Zalanului and Viscri, and then he also
but it’s not enough. And now that they can go
be the most talented at equestrian vaulting.
became aware that he could help. That’s why
anywhere to work, they can go to Germany
It is also very rewarding for us; it sends a very
he started to speak publicly about Romania,
or France, where they could make much
nice message – they achieve things that not
started to speak to the local press, opened his
more money, they have to get extra income
everybody can do. You see that little gipsy
house as a guesthouse, and finally decided to
to stay. Tourism and crafts and agricultural
kid; at first you expect him to beg, but instead
create his own foundation here – the Prince
products of higher quality are all solutions.
from so far away and love the experience.
ism is very important; obviously factories
www.business-review.eu Business Review | October 2017
36 FESTIVAL
Behind the scenes of two leading performing arts festivals in the world In the artistic scene of superlatives, I was lucky enough to attend two of the most well-known performing arts festivals of the world this summer: the 70th edition of The Edinburgh International Festival (Edinfest), the world’s leading multi-genre arts festival, and the 24th edition of the Sibiu International Theatre Festival (FITS), in the top three of the world’s most famous theatre festivals. But, are the two events comparable? By Oana Vasiliu their own festivals within the main festival,
In 2016, FITS had only a budget of EUR
FITS manages to attract new international
9 million, having on stage 2850 artists from
artists mainly from theatre field yearly, some
70 countries within 449 events. In terms
of them for the first time in Romania. I was
of growth, FITS 2017, on the other hand,
extremely happy to be one of the people
presented 503 indoor and outdoor events this
who had already seen Maria Pages Com-
year, whereas 3,278 artists from 72 countries
pany’s performance Yo, Carmen on the Sibiu
were on stage in 71 venues. There were ap-
scene, while critics applauded the same
proximately 68,000 visitors per day, while
performance during Edinfest. Furthermore,
the total budget was EUR 12 million, out of
in terms of dazzling performances on the
which only 24 percent came from public
Sibiu scenes, I was proudly able to boast to
sector funding. For all indoor performances,
Edinfest’s communication team that Kibbutz
27,000 tickets were on sale. As I said before,
Contemporary Dance Company, Batsheva
the festivals are incomparable in terms of
Dance Company and Vertigo Dance Company
numbers, but highly comparable in terms of
were in Romania, not to mention the aston-
quality and program.
ishing performance of Mikhael Baryshnikov presenting Brodsky/Baryshnikov show.
GIVING BACK TO THE COMMUNITY
Lucian Popescu
People come to visit Edinburgh from across
The last theatre performance of Edinfest 2017 in King’s Theatre
TAKING A LOOK AT THE NUMBERS
the globe to share their passion for arts, cul-
Incomparable, to say the least. Although the
ture and ideas. In their official presentation,
official numbers for Edinfest 2017 haven’t
Edinfest mentions that “the International
been released yet, for the 2016 edition, 58
Festival strives to be resolutely international
percent of income was generated through
in its outlook and it remains grounded in the
earned income, 42 percent came from public
city of Edinburgh and is committed to deliv-
sector grants and earned income included 30
ering extensive cultural, economic and social
percent from ticket sales and 25 percent from
benefits to Edinburgh, Scotland and the UK”.
fundraising, including corporate, individual
And citizens of Edinburgh seem extremely
giving, trusts & foundations and international
proud of what’s happening in their city.
partners, while 3 percent was generated from
On the other hand, people come to visit
sources such as trades and publications.
Sibiu and find out that the entire medium-
THE HIGHEST LEVEL OF EXCELLENCE
The 2016 International Festival welcomed
sized city is actively participating in the fes-
On both scenes, top performing arts compa-
audiences from 84 countries and over 2,400
tival, making the streets of Sibiu the biggest
nies come from all over the world to present
artists from 36 nations for a very suc-cessful
cultural spot due to the proximity of each and
their work to a large and diverse audience,
program. The overall attendance was over
every location of the festival. Furthermore,
both connoisseurs and the general public.
452,000, with ticket sales income surpassing
the lack of traditional cultural spaces “forces”
While Edinfest’s brings together theatre,
all previous records by reaching nearly GBP
the organizers to find alternative spaces,
dance, opera, contemporary music and
4.3 million (GBP 3.58 million net). According
moving the vibe of the festival to the suburbs,
classical music under the same main event,
to their data, each year the festival grows by
making it a complete experience of a rather
not to mention literature, arts and film with
1-2%, so, you do the math for the 2017 edition.
small, but highly important festival.
www.business-review.eu Business Review | October 2017
PHILANTHROPY 37
Changing inequality: an NGO leads the way Have you ever thought of the cause and effect of inequality and how leaders of the world can best address its challenges? It may sound very political and distant from Romania, but in reality, it’s not. The Romanian chapter of United Way co-organized The United Way Roundtable on Philanthropy in Bucharest, between 27-29 September, a “gathering of like-minded people who believe that positive change in our communities is possible,” as the event is officially presented. BR went to find out more. By Oana Vasiliu from the reports I read. I expected a friendly place from the beginning, and as I mentioned before, the democracy being so young, the enthusiasm is in terms of adolescence, and I like that. (…),” added Gallagher. The same question was also answered by Mike Hayde, one of the biggest US philanthropists. “It’s not about the reports, it’s about the people. I donate money on a trust base, so I first have to be convinced by the person. And Steven van Groningen was the one who convinced me to donate here, by presenting to me what’s hapMihai Constantineanu
pening in Romania.” “(…) the way the organization operates in Romania demonstrates that you know how to harness the potential you have when it comes to mobilizing decision-makers in institutions, From left to right: Brian Gallagher, Cristina Damian, Michael Hayde
F
companies and non-governmental organizations for the same ideals. I appreciate and
irstly, this was a very useful and
pleased that both the CEO of United Way
encourage the way you have managed, over
necessary gathering, especially for
Worldwide and the United Way Worldwide
time, to organize and promote yourself in
the NGO sector of Romania. Among
Leadership Council decided to have their
such a way as to help people in difficulty,”
the speakers, were Klaus Johannis, president
annual roundtable event in Romania. Meet-
president Johannis cordially saluted the
of Romania, Brian Gallagher, CEO of United
ing with all these great people, both from
United Way Romania implication, not before
Way Worldwide, Michael Hayde, member of
Romania and worldwide, who are here to find
mentioning the importance of international
United Way Worldwide Leadership Council,
solutions and also new donors for our cause,
partners, the EU and NATO, the foreign inves-
as well as local and international United Way
gives us a boost of energy. We have new hope
tors and the continuous fight against corrup-
partners. They all gathered to focus on the
that, although we are fighting with lots of
tion. From where I stand, Romania received
increasing economic and social inequality,
problems, from bureaucracy to difficulties to
some role models and examples of how doing
particularly through the lens of migration,
raise more money for our programs, we are
good can lead to a common goal, despite the
education, income and health.
doing the right thing for society,” the execu-
nationality or the donation amount. Also, the
tive director of the NGO, Cristina Damian, told
fact that the president of Romania made time
BR.
for a short speech of the importance of an
In a country like Romania, where inequity is mentioned in all official reports - for
NGO, like United Way, in Romania should be
example, Eurostat notes that 25.4 percent of
HOW DOES ROMANIA LOOK FROM THESE EXPATS’ EYES?
a confirmation that, at least from one side of
those mentioned above, are currently on the presidency’s development strategy. However,
“First of all, democracy is still young. It
continue their tremendous work.
until local politicians decide how to deal with
seems to me that progress has been made and
migration, education, income and health, the
there are challenges. You could be like the
Brian Gallagher, CEO of United Way World-
NGO sector is struggling to offer their commu-
US and have 200 years of democracy and still
wide, and Michael Hayde, member of United
nities a better life.
face challenges, to say the least,” said Brian
Way Worldwide Leadership Council on our
Gallagher for BR. “Romania is not different
website at www.business-review.eu.
the population is at risk of poverty, topics like
“United Way Romania is first of all, very
the local politics, there is encouragement to Read the full version of the interview with
www.business-review.eu Business Review | October 2017
38 MUSIC
Enescu Festival: decoding contemporary music with Graham Fitkin At this edition of the Enescu Festival, a premiere took place: thirty of the most influential contemporary composers of the moment participated in debates on music issues within a unique event, the International Forum of Composers, coordinated by Romanian composer Dan Dediu. BR attended the lecture of composer, pianist and conductor Graham Fitkin, who talked about reconnecting with audiences in an attempt to grasp new perspectives of the contemporary music universe. By Oana Vasiliu me. (…) Then I start to write a piece of music.” He also underlined the question of who paid for the composition, just because it’s very important to understand the whole picture. “We should ask that. I want to be sure that the relationship with the person/institution who paid me is completely honest and I want them to understand my type of music and be ok with that. If not, they should find someone else,” explained the British composer. Furthermore, practical questions like what the venue looks like and who is the audience should be asked in order to set the complete framework. A wrong venue can kill a piece of music, while the details about the audience can offer you some creation tips.
THE AUDIENCE “The act of listening tends to be so difficult Catalina Filip / Enescu Festival
these days because we are used to multitasking. When was the last time you saw someone sit there and do nothing? It’s very rare,” argues Fitkin. And he is totally right. “We should talk about connection, first of all. As a composer, when you listen to a piece
I
of music, there’s a relationship going on. (…) You come to a concert hall, you listen to my
f you search for Graham Fitkin on the
cavalcade of musical thrills (…). His all-star
music, you liked it or you hated it, it doesn’t
internet, most reviews describe his music
ensemble thrilled the audience with a perfor-
matter, it’s still a relationship. But that rela-
as eclectic, as I found out during the
mance that brought wonderful new sounds
tionship is based on all sorts of things, and
Forum of Composers. For example, Sound
to more traditional forms.” So he is more than
starts with the question ‘why did I compose
Scotland publication wrote that “Graham
hooked in the current century, although clas-
this piece of music’,” adds the composer.
Fitkin always manages to maintain his own
sical music could be seen as something very
And this is where the term “reconnection”
distinctive style of composing, even when
sophisticated and hard to understand.
pumps in, while it’s quite difficult to connect and do a single job – which in this case is lis-
he embraces an amazingly eclectic range of influences. Jazz, Latin American, early
THE FRAMEWORK
tening to a piece of music. “I want to respect
music, classical piano and electro-acoustic
In his lecture, Graham Fitkin first explained
the listener, but also potentially challenge
all had their part to play in Fitkin’s dazzling
the importance of the framework. “I ask why
him/her,” concludes Graham Fitkin.
40 INTERVIEW
www.business-review.eu Business Review | October 2017
Making music: a talk with Daniel Miller Founder of Mute Records, the label that was responsible for providing a platform for Depeche Mode, Yazoo, Erasure, Nick Cave and Moby, among others, Daniel Miller is certainly one of the most important figures in the development of electronic music. He returned to Bucharest for a DJ set and a talk with the audience at Control Club for Dokstation Festival. Just before going to the DJ’s table, BR talked with him about the worldwide music industry. By Oana Vasiliu In the 70s, electronic music was quite elitist due to the costs of technology used and the novelty. How would you define it now? Electronic music wasn’t inherently elitist. It was just because the instruments were extremely expensive, so only few people could afford it. Now, everyone can make it, on their phone, tablet, computer, anyway you want and you can also immediately broadcast. Nowadays, it is the easiest and accessible way to make music. Therefore, it went from the almost inaccessible to the most accessible in quite a small period of time.
Did the party culture changed in any way, especially in relation to electronic music? No, it hasn’t changed that much since the ‘80s. The music has changed a bit, but the culture is still there. It’s different in different countries, that’s for sure, but the party culture feels the same as when I discovered it. People come to enjoy the music and the party; they don’t really care about the type of music as long as they can dance.
Everyone quotes you on how you discovered and produced albums for Depeche Mode. Also Mute Records produced the album Maria T for the Balanescu Quartet back in 2005. How did you meet the Romanian artist Alexander Balanescu? I knew his manager at the time; I had heard of him and I saw him performing with Michael Nyman. It was a different kind of thing than what we had typically done before, but he was very anxious to do this crafted project. Also, his manager thought that Mute was the place
RedBull Romania
to produce it, so this is how we met.
In this context, what can you tell me about Balkan music? Not much, besides the collaboration with Alex
www.business-review.eu Business Review | October 2017
INTERVIEW 41
Balanescu and all the gypsy and traditional
that often, and I relying on friends from the
sic, which is not bad, but this is definitely the
folk music we worked on for the album. Also,
industry to make suggestions. The thing is
place to find a certain type of music, although
it was a time when wedding Balkan music was
that I need to connect with the music I receive
it’s pretty commercial.
trendy because of the energy and excitement.
in a way – this is how I select the artists. I
And I liked what I heard.
can’t really explain how this connection takes place, but I need to feel it. That’s the first
Is commercial radio still the key to success for musicians?
How did the discovery of Nick Cave happen?
step. Then it’s about meeting the artist – if we
I think that radio is not actually the key, but
have similar views and similar goals, then we
one of the big keys. Despite everything else,
I met Nick at a birthday party. He first came to
can work together. But, the most important
radio is still very important. But Spotify and
London in 1980, I think, and he approached
thing is that everything should be alright – on
blogs are pretty important too, along with the
me. He had an Australian label producing the
the music level, on a personal level and on a
online suite. If a radio station sees that the
band and the guy representing the label told
professional level.
online presence is growing, then they take on the risk and bring it to radio.
Nick to come and see me, I don’t know why. And I wasn’t really in the position to do it at that time. Before Depeche Mode, I didn’t have
In terms of networking and opportunities, where is the place to be?
much money. I thought they were a fantastic
Online, is the answer. This is the place to be.
For those at the beginning of their career, what advice would you give?
band and I was seeing them around London
Of course, there are a lot of opportunities of-
The only advice I would give is: don’t do it -
quite often. Eventually, they came back to me
fline in every city in the world, but more than
unless you don’t have any emotional choice. If
in 1983. And the rest is history.
everything, you should be online.
you are thinking that you are going to try and, if it doesn’t work out, you’ll go back to what
Currently, are you still searching for artists? What is the process like now? Is there still a special room with tons of demo cassettes sent to you?
In recent years, talent shows like X Factor or *insert country name* Got Talent have emerged. Are these places you look for your next artist?
were you doing, you will always end up going
Well, it hasn’t changed much for me. We still
Well, these are only TV shows for me, espe-
music, I only believe in music which you con-
receive lots of demos, but currently I’m not
cially because the process is pretty brutal. The
nect with or not. You have to really put your
doing any research. I do go to gigs, but not
process, not the music. It’s not my kind of mu-
life into it.
back to do that particular thing. It [music] has to be the only thing you do in your life. Also, I don’t think of music as good music or bad
www.business-review.eu Business Review | October 2017
42 REPAT EYE
How shoes can influence a woman’s marriage chances and other fun facts In our fourth monthly column reflecting on the Romanian experience from the perspective of a native whose life has primarily been spent abroad, BR’s resident repat will temporarily fill the expat’s shoes by musing on superstitions and interesting experiences of life back home. By Eugenia Pupeza
I
t wasn’t my intention, but I ended up
this not-so-pleasant task. In Italy, this general
and the night before Easter, when it was
gathering a lot of superstitions for this
routine was only affected on New Year’s Eve
absolutely necessary to remove all trash from
month’s article. I grew up in a household
where anything labeled “superstitious” was either dismissed or laughed at. Needless to say, my parents were not superstitious in the least… though they hail, as life back in Romania has taught me, from one of the most superstitious countries in the world. It’s like this: America is really not that superstitious at all, so throughout my upbringing, I was never exposed to truly superstitious beliefs or those that believed them. It was only when I landed in Italy for seven years, and now back in Romania, that I have truly gotten a taste for these particular cultural treats in life. Now, there are many beliefs and superstitions, and I will, in this article, touch upon those that I have personally come into contact with. While there is reasoning behind some, others
1
2
3
4
are just beyond any sort of logic that I can comprehend! Of course, this does not mean that all Romanians are superstitious; there is usually no rhyme or reason behind such beliefs. I know many older people that are not superstitious at all and many (otherwise logical) young people that firmly believe in the craziest things. It all comes down to upbringing, I think.
1
THE TRASH
In my previous experience, taking out the trash was a task that was done, quite simply, at any time the trash needed to be removed from the house. There were a few reasons for this: the fullness of the trash bin, the smelliness of the contents of the aforementioned bin, or, most often, when any of the house’s inhabitants could be convinced to undertake
www.business-review.eu Business Review | October 2017
the home before midnight. Doing so would
REPAT EYE 43
Now, with these details in mind, imagine
BLACK CATS
permit you to start the new year fresh, with-
my shock to find out that my country of birth
As in most cultures, if a black cat crosses
out old baggage, and would bring prosperity;
also has garbage-related superstitions, but
your path, it means bad luck. This belief most
for Easter, it was also like a rebirth, a way to
they are the exact opposite. They are so op-
likely stems from long ago, when there was
honor (religiously) the death and rebirth of
posing, that I cannot understand them at all,
no street lighting after dark, causing fear,
Christ and (non-religiously) new beginnings.
and this frequently leads to heated arguments
perhaps, should an animal that you couldn’t
In the south of Italy (particularly around
within the household. In Romania, you can
see cross your path. Now, I have grown up
Naples), though I never had the opportunity
only throw out the trash in the morning, or
with black cats, so it has never occurred to
to partake in the experience, people would
at most, when it is still light outside. Addi-
me that they would be anything other than
literally throw old things out of the window
tionally, God forbid you throw out the trash
fluffy companions, and that my petting black
in the middle of the street on New Year’s Eve,
on Mondays. If you throw it out at any other
cats in the street should be the source of such
everything from clothes to washing machines.
time, you are also throwing out your luck.
outrage. But yes, they are considered very
It was a running joke that you should never
And that’s not it: at Easter time (from Friday
unlucky, and if you should come across a
walk the streets of Naples on New Year’s Eve,
to Monday), you are also not allowed to throw
black cat, you must take three steps back-
lest you get hit on the head by an old ward-
out the garbage, otherwise you will have bad
wards, to reverse the bad luck. If it happens
robe!
luck or your house will burn down. While I
while you are driving, I am still unsure of the
can understand the Italian traditions, the as-
proper procedure. If, however, a black cat
sociation between trash and luck in Romania
walks along with you in the same direction, it
simply eludes me; I am more inclined to
is good luck.
believe that this superstition may be rooted in laziness alone.
Plus if a bird poops on you, it’s good luck. If you step in dog poop (lord knows, there’s a lot of it on the streets, so your chances are
MONEY
very high), it also means good luck.
While this may be the case in most cultures, Romanians are particularly attached to
GETTING MARRIED
physical money and worried about it, and
Romania is very much a culture where a
the prospect of losing it is very bad indeed.
woman is expected to get married, ideally as
Being used to a credit card which, if you
soon as possible, and the idea of not getting
lose it, who cares, this money attachment is
married is one of the worst fates. In this
equally difficult for me to grasp. However,
respect, there are some things that young
I keep in mind that the modern banking
women intending to marry at some point
system has been around in Romania for little
should avoid at all costs. Never sit at a corner
more than 20 years, so it is understandable
of a table or you will never get married. If
for a culture that has been used to deal-
you eat directly from the pot, you will never
ing exclusively in cash. I wanted to pay my
marry. Don’t break a mirror or you will not
rent on Monday. Nope, “this should not be
marry for seven years.
done,” I was warned by my family. I wanted
However, there are many superstitions
to pay back a friend who had lent me money.
that ensure a wedding will take place. If a
“What’s the matter with you, don’t you know
bride writes a friend’s name on the shoes she
it’s Monday!” she berated me. Do the grocery
wears at her wedding, the show will “pull
shopping on Monday? Absolutely appalling!
well” for her to get married as well. Listen in
On Mondays, or the first day of the month, it
the direction that dogs bark and your future
is absolutely unadvisable to give out money
husband will come from that direction. Place
because it’s bad luck; it means you will lose all
your shoes under your bed four nights in a
your money. Therefore, never ask a Romanian
row and on the fourth, you’ll dream of your
for money on a Monday, or don’t be surprised
future husband. If you try on a wedding
if they refuse you. It’s nothing personal, it’s
dress or a bride’s veil, a wedding will also
just not done. Additionally, women are not
“catch on” to you. If you catch a bouquet at a
allowed to place their handbag on the floor,
wedding, there is an entire proceeding where
EVER! This also means that you will lose all
you sit on a chair and the bride takes off her
your money. Furthermore, if your right palm
veil and places it on your head and the band
itches, you will give out money whereas if
sings, you dance a “hora” and it means you
your left hand itches, you will receive money.
will get married.
www.business-review.eu Business Review | October 2017
44 FILM
American Assassin FILM REVIEW
By Debbie Stowe within 18 months he morphs from carefree
DIRECTOR: Michael Cuesta STARRING: Dylan O’Brien, Michael Keaton, Sanaa Lathan, Shiva Negar, Taylor Kitsch ON AT: Movieplex Cinema, Grand Cinema & More, Happy Cinema, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake
T
beach bum into fearless fighting machine, fluent in Arabic and fully versed in the Koran, all the better to trap Middle Eastern bad guys. So effective is Mitch at taking down jihadis single-handedly, that he is recruited by CIA black ops to work on a special program (a bit like Treadstone) under no-nonsense Cold War veteran Stan Hurley (Michael Keaton). The movie’s striking opening, which pres-
he 21st century’s seminal “American
ents Mitch’s motivation for taking on the ter-
assassin”, whose influence seems to
rorists, is soon largely forgotten, replaced by
extend to most of the spy thrillers
a standard espionage storyline that involves
made since the early 2000s, is Jason Bourne.
dodgy Russians, corrupt politicians, missing
Whether it’s in the grayish European settings,
polonium, double agents, maverick spies go-
kinetic cinematography, furious rooftop
ing rogue and other things you’ve seen many
chases, or hand-to-hand combat between
times before.
jaded hotties, everyone seems to be copying Matt Damon’s ex-CIA asset. It’s no different here, in Michael Cuesta’s
American Assassin is raised slightly above the many similar Bourne-again movies by the casting of Keaton. His talent and range are
heavyweight is David Suchet (aka Poirot), albeit in a minor role. But it’s all about the stunts and set pieces
passable action flick. Traumatic events in
somewhat wasted here on a clichéd and un-
in this type of action thriller, and these are
his personal life have led Mitch Rapp (Dylan
challenging role, but his presence and robust
decent enough to render a forgettable movie
O’Brien) to turn terrorist hunter. Implausibly,
performance add a touch of class. Another
entertaining enough.
The Hitman’s Bodyguard FILM REVIEW
By Debbie Stowe
DIRECTOR: Patrick Hughes STARRING: Ryan Reynolds, Samuel L. Jackson, Gary Oldman, Salma Hayek ON AT: Movieplex Cinema, Grand Cinema & More, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake
T
o another maverick gun-for-hire, this time in the person of Samuel L.
All except one, that is: jailed titular hitman Darius Kincaid (Jackson), who has been persuaded to testify by the promise of his wife’s (Salma Hayek) release from prison. Through various plot turns, Kincaid ends up on the run, with only a washed-up bodyguard Michael Bryce (Ryan Reynolds) protecting
powering the film along its largely predict-
him from Dukhovich’s henchmen and the
able trajectory.
Interpol insiders on the despot’s payroll. For most of the running time, this is a road
There is a lot of violence (though given the title, this isn’t really a surprise) and a lot of
movie, with much of the comedy derived
swearing, especially from Hayek, in a highly
Dukhovich (Gary Oldman) is on trial at The
from the “odd couple” pairing – the “by the
stereotyped fiery Latina role. The fight se-
Hague for various atrocities (the brutal depic-
book” uptight young buck and free-wheeling
quences take time away from the more enjoy-
tion of which strikes a discordant note in
old-timer forced together by circumstances.
able scenes of humorous interplay between
what is otherwise a fairly funny action-com-
Both are well cast, with Reynolds, funny in
the leads, although they’re well done.
edy). But the case is on the point of collapse,
his own right too, a suitable foil for Jackson’s
as the tyrant has killed off all the potential
trademark fierce rants. They each make the
a better movie, but still fire on all cylinders in
witnesses.
most of their roles, with the duo’s chemistry
this one.
Jackson. Belarusian dictator Vladislav
Jackson and Reynolds probably deserved
www.business-review.eu Business Review | October 2017
RESTAURANT REVIEW 45
Left disappointed and hungry
I
>>> Lugo Restaurant & Lounge, George Enescu Street 23, Tel: 0785 238 910 <<<
cannot imagine what was in the mind
pasta, hot pepper and mango.” Oh give me a
cheaper look alike, substitute version of
of the proprietor of this house when he
break: there was no hot pepper, the pasta was
“Parmigiano Reggiano.”
named it Lugo, a small town in Spain,
five spaghetti-type noodles and the soup was
So now, when I saw parmesan listed on
for there is nothing Spanish about this place
reminiscent of clear dishwater. For anything
the ingredients of a dish on the menu, I
whatsoever. Even if you stretch your imagi-
Thai, I would expect at least the inclusion
viewed it as a fraud. And there were many
nation to breaking point, there is nothing
of blistering hot red curry, coconut milk and
fraudulent dishes containing so-called
Mediterranean about it, either. But oh well,
topped with fresh coriander leaves. But it was
parmesan. There was, for example, a
I went there with Blondie because it is in a
not forthcoming and the dish was a disaster.
“truffle risotto with parmesan.” A double
great location, and it had a wonderful ter-
I chose a “seafood soup” containing
whammy here, as there was not only no real
race, resplendent with two bamboo walls.
shrimp, squid, octopus and mussels. This
parmesan, but also no truffle in the kitchen.
combo of seafood was to be a recurring theme
Therefore, this reduced the 85 boastful
ing the 85 items it boasted, already raised
in their dishes, which I strongly suspect was
items by deleting from their 8 pasta dishes
red flags of alarm. I know sophisticated
straight out of a supermarket freezer pack. My
the “pappardelle with truffle, mushrooms
European hotel kitchens with 25 chefs who
fish were swimming in a clear watery tomato
and parmesan”- no thanks. Add to that
would struggle to create such a number,
soup, the tomatoes inexplicably extracted
“truffle chicken, beef and parmesan”- nope.
so how the hell could a chophouse with
from a tin at a time when fresh tomatoes were
And a big nah to their “risotto with truffles
So off to the menu which, consider-
one chef achieve the same? Well, it cannot!
cheaper for the house to
and parmesan” as well as a goodbye to their “burrata (cheese) with truffle cream,” and a
It was typical old-time
double NO to anything
Romanian gastronomic
containing parmesan.
strutting, and in an at-
Nothing worked,
tempt to impress you 85 times. The house
including our last
diluted original-
dish of “wok turkey
ity and creativity by
with rice, hot pepper, sweet chili sauce
simply rotating the
and vegetables.” Why
contents of the same
even mention a wok? Is
dishes over and over, so read on and I shall elaborate further. As a balance to my being a macho meat eater, Blondie is a waist-watching salad lover, hence she opted for a “Cae-
buy; it was devoid of garlic and seasoning. A failure. But they did something right with a
a wok meant to impress or intimidate you? Dammit why didn’t they simply say “stir fried” instead of “wok?” Well, it was a failure, as the unseasoned vegetables (red and green
sar Salad,” of which she is an expert. She
Crostini, a finger of toast topped with melted
peppers plus carrots) were overwhelmed
howled in derision at her “product” when it
cheese, prosciutto and rucola. It was impos-
by a sickly sweet chili sauce and not a hint
arrived, for it was not a Caesar salad. Every
sible to do it badly, so it was fine, save for
of hot pepper. The rice was served on the
chef the world over knows it must be made
the ludicrous name of “Margherita,” which I
side, dutifully colored yellow by turmeric
with bitter “Cos” lettuce, with a dressing
always thought was a cocktail or a pizza.
powder to impress you.
made from crushed parmesan, squeezed
Away I went to a “seafood risotto,” which
I wonder when Romanian restaurateurs
garlic, anchovies, lemon juice, olive oil,
was acceptable, and contained the same
will get the message that most of the great-
Worcester sauce, egg yolk and topped with
combo as my soup: shrimp, squid, octopus
est restaurants in the world earn their stars
croutons. NONE of the aforementioned
and mussels. We passed on their 9 seafood
with fixed menus of 5 mains which have
items were discernable and instead, it was
dishes including fresh tuna, sea bass, shrimps
been honed to perfection, not 85 items. I
made with iceberg lettuce, tomatoes and
and mussels, but I guess you anticipated
left hungry and I will not look back.
chicken. But, worse was to come.
that list already. I asked for a side of shaved
From the soup section of the menu, she chose an alleged “Thai turkey soup with
parmesan, and to my horror, they passed off parmesan with vile, “Gran Padano,” a
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | October 2017
46 CITY
Cultural calendar Explore Festival Until October 14, several locations
National Theatre Festival October 20-30, several locations
By Oana Vasiliu
point they would collaborate together. “The first time I heard Edmar, I simply said “WOW!” in awe of his artistry. So now, I would like all of you to hear his music so you can go “WOW!” too,” said Hiromi. Their debut performance at The Blue Note in NY was
accompany him on the road with
unexpected and impulsive. What
two internationally renowned
they created together musically
artists: violinist Yehudi Menuhin
was simply mesmerizing. The
and sitar-player Ravi Shankar.
Bucharest International Contem-
For this 27th edition of the
audience was spellbound and
Their project, “West meets East,”,
porary Dance and Performance
festival, French actress Juliette
the music was magic. Because of
is the foundation of the World
Festival is a unique initiative of
Binoche and a group of inter-
this musical connection, these
style, generated a new music
a non-profit association whose
national artists will come to
two great talents decided to join
from the blending of Indian
goal is to increase the visibility of
Bucharest, alongside French
forces as a duet for 2017.
rags with the European sounds,
contemporary dance by present-
pianist Alexandre Tharaud, and
ing a consistent program to the
directors Robert Lepage, Evgeny
general public and dance profes-
Mironov, and Angelin Preljocaj.
sionals. For this edition, artists
Three international produc-
from France, Belgium, Germany,
tions will be shown at this year’s
Norway, Austria and Romania
edition of the festival. Hamlet |
will take the stage.
Collage (October 20), an adapta-
Well known violinist Alexandru
through January the following
tion after William Shakespeare by
Tomescu invites audiences to
year.
Sting concert October 17, Cluj-Napoca
Canadian director Robert Lepage; Romeo and Juliet (October 29), a ballet choreographed by Angelin Preljocaj and Vaille Que Vivre (October 30), a show dedicated to the French singer Barbara. The latter sees Juliette Binoche and Alexandre Tharaud perform the text and music of the performance.
Sting returns to Romania, but with his first concert in Transylvania. The concert is part of his ‘57th and 9th’ tour, promoting his
Hiromi duet featuring Edmar Castaneda The Romanian Athenaeum, October 21
new rock album with the same name. According to organizers, the English musician Sting will be accompanied by a live band including Dominic Miller – guitar, Josh Freese – drums, Rufus Miller – guitar, and accordionist Percy
Hiromi met Edmar Castaneda
Cardona (The Last Bandoleros).
at The Montreal Jazz Festival,
The concert’s special guest will
where she found him so amazing
be his son, Joe Sumner.
musically that she knew at some
inspiring music-lovers all over
West meet East – Enescu, Menuhin, Shankar October 23, Romanian National Museums of Arts
the world for five decades. West Meets East was number 1 on Billboard’s Best Selling Classical LP’s list for eighteen weeks in 1967 and continued to top that chart