Business Review Issue 16/2012 May 7 - May 13

Ponta’s people: Victor Ponta, Romania’s prime minister-designate, names his cabinet, as the USL seizes hold of power after the former government lost a motion of no confidence at the end of April »page 5

ROMANIA’S PREMIERE BUSINESS WEEKLY

SOCIAL ECONOMY

May 7 - 13, 2012 / VOLUME 16, NUMBER 16

ROMANIA HAS GREAT POTENTIAL TO DEVELOP MORE SOCIAL BUSINESSES AS THE LEGAL FRAMEWORK GETS CLEARER. ONE SUCH EXAMPLE IS A NEW MOSAIC FACTORY »PAGES 10-11

CAPITAL CONTEST From a football coach to a cleaning company ownerturned-media mogul, fifteen colorful candidates are in the race to become mayor of Bucharest. BR takes a closer look at the runners and riders »page 8-9

Photo: Mihai Constantineanu

NEWS

NEWS

RESTAURANT

FILM

Cash crash

Our daily bread...

Flour power

Premier viewing

Romania’s currency, the RON, fell to an alltime low against the Euro as political uncertainty hit the money markets » page 4

... may get cheaper if a long-discussed government plan to reduce VAT on bakery products is realized this year » page 4

Our food critic headed north to investigate the London Street Bakery. Did it rise to the occasion or was it a stale experience? » page 12

Oscar-winning Margaret Thatcher biopic The Iron Lady finally reaches Bucharest?

BR’s film reviewer tested its metal » page 14

www.business-review.ro Business Review | May 7 - 13, 2012

NEWS 3

NEWS in brief lion. The work is part of a limited edition of four bronze heads that were molded in 1911, and comes from a private collection in Europe.

AGRICULTURE Pajo Holding feeds EUR 3.5 million into fodder factory

Little London starts expansion works on Bucharest campus

Photo: Mihai Constantineanu

Pajo Holding, belonging to the Paraschiv family which also owns several other companies in the meat-processing industry, will invest EUR 3.5 million in expanding the production capacity of its fodder factory in Valcea county by 40 percent.

The money for the project comes from EU funds and the investment must be finished by October, the company has announced. Pajo Holding will mainly process cereals produced by the group.

ART Brancusi work sells for USD 12.6 million at Sotheby’s auction Promethee (Prometheus), a bronze work by iconic Romanian sculptor Constantin Brancusi, has sold for more than USD 12.6 million in New York at an auction organized by Sotheby’s.

The starting price was USD 4.75 million but bids reached USD 10 million within minutes, and soon surpassed the initial estimations of organizers who forecasted that the work would go for between USD 6 and 8 million. The work is part of a limited edition of four bronze heads that were molded in 1911, and comes from a private collection in Europe.

ENERGY Enel Green Power secures EUR 180 million of financing for wind parks The green arm of Italian utility Enel has secured through Enel Green Power International a EUR 180 million financing agreement with the Danish government’s Export Credit Agency (EKF) for three wind farms with combined installed capacity of 410 MW. Citigroup was agent and arranger for the 12-year financing agreement that will be used to cover part of the investments in Enel’s wind farms Zephyr I (Romania – 120 MW), Caney River (USA – 200 MW) and Cristal (Brazil – 90 MW). The total costs of these wind parks amount to EUR 670 million.

IT Romania slips to ninth in internet connection speed league Romania was ranked ninth in the world regarding average internet connection speeds in the last quarter of 2011, falling five spots from the fourth position it achieved in the same interval of 2010, according to a report by the company Akamai. Average internet connection speeds decreased by 8 percent during

PICTURE of the week New wolf statue packs a punch in Bucharest Bucharest mayor Sorin Oprescu last week unveiled a statue of Roman emperor Trajan carrying a wolf. The sculpture was revealed on International Museums Day and is located in front of Bucharest’s National History Museum. It is the work of sculptor Vasile Gorduz. this time, from 7 Mbps to 6.4 Mbps. The only Romanian city that appears in the top 100 cities with the best internet connection speeds is Timisoara, ranked in 89th place, with an average speed of 7.4 Mbps. This is another decline for Romania, since in Q4, 2010 there were two local cities included, Constanta (in 56th place with 8.23 Mbps) and Iasi (75th, 7.63 Mbps).

MACRO bpv Grigorescu launches business guide in Chinese Romanian law firm bpv Grigorescu Stefanica has released the guide Doing Business in Romania 2012 in Chinese, for Chinese investors in Romania. The guide was developed with the support of law firm Beijing Rain Maker and tackles information in the areas of corporate law, labor relations, taxation, public procurements, energy and natural resources. The guide can be downloaded free of charge from the Publications section of www.bpv-grigorescu.com.

MONEY Garanti Romania net profit rises to EUR 5.8 million in Q1…

The net profit of Turkish Garanti Group Romania, which includes three financial institutions and a bank, jumped 80 percent to EUR 5.8 million in Q1. The largest share went to Garanti Bank,

where net profit gained 70 percent y-oy to EUR 4.1 million.

Garanti Bank will focus this year on increasing lending, both for retail and the SME/corporate sector, while looking to improve liquidity, according to Murat Atay, CEO of Garanti Group Romania. The bank’s overall lending grew by an average of 10 percent.

… while BRD’s falls to EUR 19 million

Bucharest-based school Little London is starting expansion works on its campus this June with a EUR 3 million investment from Florin Segarceanu, the main investor in the project.

From September 2013 the new campus, built on a 4,300-sqm plot, will encompass a building with a 900-sqm surface area for the primary school with nine classrooms, a 3,000-sqm building for the secondary school with 21 classrooms, two 560-sqm outdoor sports areas (one of which will be covered), inside sports facilities, laboratories, music and arts spaces, a media center, a library, an IT lab, dining rooms, outdoor playgrounds and a parking lot.

Former footballer Popescu nets Courtyard Marriott deal Gica Popescu Hotels, a company owned by the Romanian former football player, has signed a deal with Marriott International for the construction, development and management of the first Courtyard Marriott hotel in Romania. The four-star hotel, which will be located in Bucharest, will be the result of a EUR 20 million investment. The hotel will have 146 rooms, four conference halls and a spa, as well as retail spaces.

RETAIL Escada opens store at The Grand

BRD-Groupe Societe Generale’s net profit decreased by 39 percent y-o-y to RON 83 million (EUR 19 million) in Q1 2012, impacted by the net risk cost which rose by 58 percent y-o-y to RON 337 million (EUR 77 million). Net banking income rose by 6 percent y-o-y to RON 767 million (EUR 176 million), due to resilient commission income and increased net interest income. Expenses fell by 2 percent, while the exploitation coefficient improved to 43.7 percent in Q1.

Romanian fashion designer Romanita Iovan has invested EUR 200,000 in opening an Escada store on the premises of The Grand Avenue in Bucharest.

The shopping gallery is part of multifunctional compound The Grand, which also hosts the five-star JW Marriott Bucharest Grand Hotel. It is the second attempt to establish the luxury brand in Romania after the first franchise store, which was opened by Iovan on Calea Victoriei in 2002, went bankrupt and was closed within five years. The new store covers 81 sqm.

PROPERTY

TELECOM

Brancusi work sells for USD 12.6 million at Sotheby’s

Orange Romania posts EUR 220 million in Q1

Promethee (Prometheus), a bronze work by iconic Romanian sculptor Constantin Brancusi, has sold for more than USD 12.6 million in New York at an auction organized by Sotheby’s.

The starting price was USD 4.75 million but bids reached USD 10 million within minutes, and soon surpassed the initial estimations of organizers who forecasted that the work would go for between USD 6 and 8 mil-

Orange Romania’s revenues stayed at the same level in the first quarter of this year, as the company posted EUR 220 million, which “exactly corresponds to the company’s expectations,” said officials. At March 31, 2012, Orange had 10,087,025 customers while the average revenue per user (ARPU) amounted to EUR 82. Of these, 3.19 million were mobile internet clients.

www.business-review.ro Business Review | May 7 - 13, 2012

4 NEWS MACRO

EVENTS

Government change shakes the RON

Europa League final puts Bucharest on European soccer map

Fever pitch: Oprescu has voiced concerns over the state of the grass at the stadium

The value of the RON has been hit by the volatility of Romania’s political scene

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he appointment of a second government in less than three months saw the Romanian currency (the RON) fall close to 1 percent against the Euro, but economists say the EUR/RON exchange rate will calm down once the Ponta government settles into Victoria Palace.

The Ungureanu government lost power on April 27 following a no-confidence vote from opposition MPs and the new government should be voted in by MPs on May 7. The EUR/RON rate was impacted by the development, dipping to a historic low of 4.4168 on May 2, down 0.96 percent since the fall of the Ungureanu government. On late Friday, the RON had picked up again but was still trading around 4.4. In the year to date, the Romanian currency has lost 1.99 percent against the Euro.

“The RON depreciated significantly in trading on foreign markets, as the domestic one was closed on May 1. Since Wednesday, the exchange rate has fallen to 4.41 RON/EUR and the trend is for the RON to appreciate,” said Dan Bucsa, chiefeconomist at UniCredit Tiriac Bank. He predicts the RON may be trading below 4.4 once the new government is voted in and reaches an agreement on the letter of intent with the IMF. However, he adds that only by increasing exports, FDI and EU fund absorption will the RON appreciate below 4.4 RON/EUR. Mihai Patrulescu, economist at Bancpost, said the recent political pressure was at the core of the RON’s depreciation.

“Foreign investors were already wary of risks as political instability was always going to be an issue in an election year,” he said.

The reassurance from the Ponta government that it will collaborate with the IMF, World Bank and European Commission and will target a budget deficit below 3 percent on ESA terms put the brakes on the RON’s depreciation, according to Melania Hancila, head of the research and strategy department at Volksbank.

“We might see a stronger recovery of the domestic currency against the Euro once the new government settles in,” she commented.

Mugur Isarescu, governor of the Na-

tional Bank of Romania (NBR), said last Wednesday that foreign investors are holding RON 10 billion (around EUR 2 billion) worth of bonds issued by Romania and their reactions are harder to control from Bucharest. Isarescu says the largest share of the trading involving RON happened abroad.

“We are glad that things were calm in Bucharest, and the trading volumes were not large. It seems that things have stabilized,” said Isarescu, quoted by Agerpres newswire. In a report released last week on the top 10 challenges facing the Romanian economy, BCR predicted the RON was likely to remain within the 4.34.5 range against the Euro for most of 2012. BCR analysts say there will be further episodes of instability followed by calmer periods, although the central bank will dampen soaring volatilities.

Low impact on inflation Romania ‘s inflation rate dropped to 2.4 percent in March and the governor says it will further decrease to 2 percent in April, adding that the exchange rate will play a minor role in this. “We don’t see a major impact. There will probably be variations of 0.1, 0.2, 0.3 percent, not significant,” says Isarescu.

Bucsa of UniCredit said the RON’s depreciation was brief and insufficient to significantly impact the price of imported goods. “If the exchange rate returns below 4.4 RON/EUR, the depreciation in May will be of a maximum of 0.5 percent against April,” he said.

Patrulescu of Bancpost expects consumer prices to remain within the NBR target interval of 3 percent ±1pp, in spite of exchange rate fluctuations and the harsh winter conditions, adding there is still room for easing monetary policy.

The NBR decided last week to keep the interest rate at 5.25 percent, although it had previously decreased it three times since last November.

The Volksbank economist says chances are high for the RON to return to levels seen prior to the fall of the government, respectively 4.37-4.38 RON/EUR, allowing the NBR to further lower the key interest rate to 5 percent. ∫ Ovidiu Posirca

A

thletic Bilbao and Atletico Madrid are preparing to contest the Europa League final that will take place in Bucharest at 21.45 on May 9 at the National Arena.

Between 20,000 and 40,000 supporters of the two teams are expected in Bucharest for the game, according to Mircea Sandu, president of the Romanian Football Federation. All 20,000 tickets allocated to Romanian fans for the match have been sold, the federation has confirmed.

Various Romanian media outlets have predicted that the local economy will receive a boost of between EUR 10 million and EUR 30 million as a result of the influx of foreign fans to Bucharest.

“We are at the finishing line with preparations for the Europa League final.

Now we are focusing on details: we know what UEFA’s expectations are, we know the expectations of the public and I can assure you that so far at least we have done everything that we could for this event to go ahead flawlessly,” said Bucharest general mayor Sorin Oprescu.

The city hall also urged the Ministry of Education to give schools in Bucharest a day off on May 9, to facilitate the organization of the match.

“I make an appeal to Bucharest drivers to avoid going in the area around the stadium and I ask those who are coming to the stadium to leave their cars at home and use public transport,” said Oprescu.

On the day of the final, two special areas will be cordoned off for supporters, based on the model of international competitions, one in Constitutiei Square and the other in George Enescu Square.

Approximately 5,000 police officers, gendarmes, fire fighters and border police will be deployed in order to ease traffic, provide security and conduct special operations, according to the Ministry of Administration and Internal Affairs.

The National Arena, which will host the game, was inaugurated last year following an investment of EUR 234 million, and has a capacity of 55,200. The stadium was ranked in the best quality category by UEFA. It has 2,100 parking spaces and 360 restrooms, and has been declared the best in Europe after the Warsaw National Stadium. ∫ Otilia Haraga

On the occasion of the Europa League final Metrorex will honor past glories of Romanian and European soccer by renaming several subway stations between May 6 and 10. To this effect: Piata Victoriei becomes Nicolae Dobrin Stefan cel Mare becomes Ion Parcalab Obor becomes Gica Hagi Piata Iancului becomes Llorente Piata Muncii becomes Falcao Dristor becomes Rica Raducanu

TAX

Agricultural minister-designate proposes 9 percent VAT for bakery products

C

utting VAT on bakery products from the present 24 percent to 9 percent would draw “hundreds of millions” to the state budget from the black market, said Daniel Constantin, the agricultural minister-designate last Friday, according to Mediafax newswire.

The measure would reduce tax evasion on bakery products from its present level of 60 percent of the total market, he said.

The additional money generated for the state budget is necessary for improvements in the agricultural sector as well as other investments, Constantin added.

Cutting VAT on food products has been previously discussed and was even endorsed by the former agriculture minister Valeriu Tabara, but the outgoing government did not implement it.

“The proposal to cut VAT on staples to 9 percent is a commitment we have been discussing for a very long time and it remains to be decided, with the Ministry of Finance, when to introduce this proposition.

I wanted to set an example this year to-

wards the end of the year for the bakery industry – even though we are under pressure to meet the budget deficit target,” said Constantin, according to Mediafax.

PM-designate Victor Ponta said the same day that cutting the VAT was a necessary measure that would be included in the state draft budget “at the latest” for 2013.

Ponta added that he supports reducing VAT on food as this would reduce tax evasion, support local producers, and on the medium term also increase the revenues to the state budget.

Asked whether the Finance Ministry supports the change, Ponta said that while the ministry is generally skeptical about tax cuts, its responsibility will be to come up with a date when the measure can be implemented.

Commenting on the proposed tax cut, former agriculture minister Stelian Fuia said at a press conference last Friday that while it would help fight tax evasion it would not reduce shelf prices. ∫ Simona Bazavan

www.business-review.ro Business Review | May 7 - 13, 2012

NEWS 5

PARTNER CONTENT

Think and Act Regionally Although it seems at first sight a new advertising slogan, to think and act regionally is, for many Romanian companies, a successful business destination.

Robert Zanescu Corporate Communication Manager, Bancpost

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risis effects are felt differently depending on geographical areas and economic sectors, and for specific problems, there are specific solutions.

Romania, Greece, Hungary, Moldavia, Poland, Russia and Turkey share more or less the same region, but when it comes to business within fields like food and drinks, building materials, plastic materials, chemicals, pharmaceutical products and cosmetics, the companies from these countries and industries choose to find together the solutions for developing markets.

In Bucharest, on June 11 and 12, at JW Marriott Hotel, over 200 companies from the above-mentioned countries will at-

tend the “Go International” trade event.

Through pre-arranged bilateral meetings – these companies can announce their participation and have the opportunity to choose the type and names of companies they wish to meet – new business contacts and important trade connections established.

The “Go International” event concept has proved to be a successful one following the previous editions in Cyprus and Serbia, where more than 2,800 bilateral meetings took place. The fact that each company can choose the companies it wishes to meet and plan these meetings during the first or second day of the event (or both days) makes this event a flexible and very efficient business platform.

The registration for participating in the “Go International” trade event in Bucharest is free of charge and can be made by accessing www.gointernational.ro.

“Go International” is an initiative implemented by Eurobank EFG financialbanking group in cooperation with the three main export associations of Greece, the Panhellenic Exporters’ Association, the Greek International Business Association and the Exporters’ Association of Crete. It operates under the auspices of the Hellenic Ministry of Foreign Affairs and is supported by the Romanian Chamber of Commerce & Industry, the Hellenic - Romanian Chamber of Commerce & Industry and by Bancpost. Romanian companies can register for free at www.gointernational.ro.

Robert Zanescu

Bilateral meetings at Go International trade event Over 200 companies from Romania, Greece, Hungary, Moldavia, Poland, Russia and Turkey will attend the “Go International” trade event on June 11 and 12, at JW Marriott Hotel in Bucharest. For two days, between 9.00 – 16.00, manufacturers and distributors of food and drinks, building materials, plastic materials, chemicals, pharmaceutical products

and cosmetics, will have pre-arranged bilateral meetings focused on establishing business contacts and regional cooperation.

www.business-review.ro Business Review | May 7 - 13, 2012

6 FOCUS

Race for Bucharest City Hall is on Fifteen candidates are vying for the position of general mayor of Bucharest, who will serve a four-year term. The race is likely to be colorful, as it includes candidates with very diverse backgrounds. Among them are Anghel Iordanescu, a former coach of the national soccer team; tabloid figure Irinel Columbeanu; Gigi Becali, owner of Steaua soccer club; and Nicusor Dan, president of the Save Bucharest association. The incumbent, Sorin Oprescu, and Silviu Prigoana, founder of the urban cleaning company Rosal, are the early favorites. ∫ OTILIA HARAGA

Photo: Mihai Constantineanu

Local elections for voting on mayors, local and county councilors and the presidents of the city councils will take place on June 10.

The candidate elected to take the helm of the Bucharest City Hall will inherit tricky issues that have gone untackled for years, much to the public’s frustration.

These include bad traffic, the lack of parking spaces, the lack of green spaces and cycle lanes, stray dogs and the absence of coherent urban policies, to name just a few.

In 2012, the Bucharest City Hall’s approved budget was RON 4.64 billion (approximately EUR 1.07 billion). The money will be spent on continuing projects started in previous years and subsidies for RADET, the supplier of hot water and central heating, and RATB, the Bucharest public transport network.

No money has been allocated to new infrastructure projects. However, the budget was approved by the counselors of the Democrat-Liberal Party, who hold most of the votes on the Bucharest Council, to the discontent of general mayor Oprescu who described it as “unbalanced.”

The budget for 2012 is slightly higher than the figure for 2011, when the Bucharest City Hall had RON 4.5 million at its disposal.

At the end of last year the City Hall had loans of EUR 873 million from the European Investment Bank, the European Bank for Reconstruction and Development, as well as from a bond emission, according to media reports.

The current general mayor of Bucharest, Sorin Oprescu, is a former surgeon who joined the Social Democrat Party (PSD), and was elected president of the party in 2006. Oprescu is running for a new term as an independent candidate “supported by the Social-Liberal Union (USL).”

“I wish to continue to change the city for the better, for all of us to develop and reach normality, and I am convinced that over the coming years we will manage to do that,” he said.

Projects that have been initiated or completed during Oprescu’s term include the Basarab passage and the modernization of several other passages at Lujerului, Piata Victoriei, Piata Unirii, Obor, Universitatii and Pipera.

The National Arena, built on the site of the former Lia Manoliu national stadium, was also finished during his time in office, while works are under way for the construction of an underground parking lot at Universitate.

Capital ideas: the mayoral candidates must sell the Bucharest public their vision for the city

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1. Sorin Mircea Oprescu (independent candidate supported by the USL) 2. Nicusor Dan (independent) 3. Anghel Iordanescu (National Union for Romania’s Progress) 4. Adrian Irinel Columbeanu (Popular and Social Protection Party) 5. Vasile Silviu Prigoana (Democrat Liberal Party) 6. George Becali (New Generation Christian Democrat Party) However, the mayor has come under criticism for what opponents describe as his failure to deal with the stray dog problems, on which his main competitor, Silviu Prigoana, has campaigned energetically.

Prigoana, a businessman who founded urban cleaning company Rosal Group and is also a well-known figure in the Romanian mass media, as founder of several niche media outlets, such as the Reali-

tatea TV channel Etno, Taraf, Taifasuri, ters administered via public-private partand TV Sport (the current sport.ro), is runnership. “The dogs must live, but not on ning on behalf of the Democrat Liberal the streets,” he has said.

Party (PD-L).

Another issue on Prigoana’s agenda is His agenda relies heavily on a comthe renovation of the historic buildings in mitment to solve the controversial issue Bucharest that have fallen into disrepair. of stray dogs, which has split the popu- “In Bucharest, there are 2,821 national lation. “In six months we will solve this,” heritage buildings, most of them in an advanced state of decay,” said the candidate. he claimed, advancing as a solution rePrigoana, who is famous for wearing moving the dogs from the streets and only black suits and ties, promised to placing them into specially created shel-

www.business-review.ro Business Review | May 7 - 13, 2012

wear white from now on, if elected mayor.

“Bucharest must be a European capital. I entered the electoral campaign because I want this, so that my children can learn in the country, stay in Bucharest and have the comfort enjoyed by the European citizen,” he said.

While these two candidates are both bolstered by the overt or implicit support of political parties, Nicusor Dan, president of the Save Bucharest Association, is running as an independent, and has garnered much support from civil society

1 bln euro (RON 4.6 billion) – the approved 2012 budget for Bucharest City Hall and Bucharest’s artistic community.

The candidate says he has the upper hand over his opponents by not being part of the establishment – meaning “what we are used to seeing as the system, influence-peddling networks where everything is discussed behind closed doors and citizens do not benefit from transparency,” said Dan. “I am a person who knows what a European city in the 21st century means,” he

FOCUS 7 said, adding that the mayor should not confine his efforts to ‘filling potholes in the road’ but should attract investors to the city.

Dan, a mathematician who won first prize in the International Mathematics Olympics in 1987 and 1988, studied at the Ecole Normale Superieure in Paris between 1992 and 1995, and got his PhD in mathematics at the Paris-XIII University.

Upon returning to Bucharest, he designed and developed the Bucharest Normal Superior School, of which he was also executive director between 2000 and 2006.

As part of the activity of the Save Bucharest Association he founded in 2008, he fought against the chaotic urbanization of Bucharest and saved green spaces from being turned into residential compounds.

“I want a city where one enjoys living, where one can enjoy walking on the street, a city where the bus comes at the time written on the board – and where something is written on the board – a city where you have places to take your child after school, where you don’t have to come downtown to see a film, where you can drink water from the tap,” said Dan. He promised that if elected mayor he will invest in people. “We have to do things in such a way that young people do not want to leave the city, so Bucharest becomes a regional center in IT, creative industries and higher education,” he added.

Another candidate, Gigi Becali, is a local businessman and owner of the Steaua soccer club. He has promised to erect 10

new churches in each sector of Bucharest, meaning 60 in total, so that the Bucharest faithful will have places to worship, while his next priorities would be healthcare and education. Becali said these issues will be easy to solve using the money that has been stolen by the Bucharest administration so far.

Anghel Iordanescu, who is the candidate of the National Union for Romania’s Progress, is a former coach of the national soccer team. “I am very confident I will win. I remember that some time ago, Bucharesters gave me a mandate to represent Romanian sport. I did it then and I am confident I will succeed now as well,” said Iordanescu.

He said he wants to make Bucharest a “clean” capital and solve issues such as transportation and parking.

Businessman Irinel Columbeanu is a well-known figure to local tabloid readers, mainly because of his marriage to and divorce from the much-younger Monica Columbeanu. Running as an independent, Columbeanu said he had made the decision on his own, against the advice of his near and dear, as a “simple citizen of Bucharest for the past 52 years.”

The businessman has so far not released any agenda setting out the objectives that he wants to pursue. “I don’t think stray dogs are one of the problems facing Bucharest, this issue should be dealt with humanely. I think for Bucharest it is important to start partnerships with other European cities,” he said.

otilia.haraga@business-review.ro

CANDIDATES FOR BUCHAREST GENERAL MAYOR George Becali (New Generation Christian Democrat Party) Constantin Cojocaru (People’s Party PP) Adrian Irinel Columbeanu (Popular and Social Protection Party) Nicusor Dan (independent) Petrica Dima (Romanian Socialist Party) Florin Dobrescu (“All For The Country” Party) Constantin Ionescu (Workers’ Social Democrat Party) Anghel Iordanescu (National Union for Romania’s Progress) Vasile Lincu (Ecologist Union in Romania) Vasile Horia Mocanu (Dan Diaconescu – People’s Party) Sorin Mircea Oprescu (independent candidate supported by the USL) Petre Popeanga (Greater Romania Party) Vasile Silviu Prigoana (Democrat Liberal Party) Ioan Ionita Todosiu (Socialist Alliance Party) Alexandru Vladu (Alliance of the European People’s Party and European Democrats)

www.business-review.ro Business Review | May 7 - 13, 2012

8 FOCUS

New faces make their way to the table The government led by 44-year-old Mihai Razvan Ungureanu was toppled after 78 days in power, following a noconfidence vote on April 27, paving the way for the opposition alliance (USL) to form a new government headed by 39-year-old Victor Ponta, president of the Social Democratic Party (PSD).

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1. Victor Ponta 2. Corina Dumitrescu 3. Corneliu Dobritoiu 4. Liviu Pop 5. Dan Nica 6. Daniel Constantin 7. Mircea Dusa 8. Eduard Hellvig 9. Rovana Plumb 10. Leonard Orban 11. Titus Corlatean 12. Victor Paul Dobre 13. Vasile Cepoi 14. Florin Georgescu 15. Lucian Isar 16.

Ovidiu Silaghi 17. Mariana Campeanu 18. Mircea Diaconu 19. Ioan Rus 20. Andrei Marga 21. Daniel Chitoiu

∫ OVIDIU POSIRCA On May 1 PM-designate Ponta outlined his proposals for the government expected to be in place until November, when elections will be held. While the new cabinet must receive a vote of confidence from MPs on May 7, the USL co-president has already signed a support agreement with left-wing party UNPR and should pick up votes from the national minorities group. The right-wing PDL has said it will not vote for the new cabinet. It is currently trying to recover from a wave of defections that enabled the opposition to seize power.

The Ponta cabinet has 17 ministers but three delegate-ministers have also been proposed in a bid to increase cooperation with trade unions and the private sector. It includes politicians who have held top government jobs, as well as technocrats.

Wages and pensions back up The political turmoil comes during a fifth review mission in relation to a EUR 5 billion stand-by agreement with the IMF, World Bank and European (the troika). Troika representatives announced they would hold solely technical negotiations with Romanian authorities, while they wait for the political situation to calm down.

Florin Georgescu, an experienced econ-

omist and head-vice governor at the National Bank of Romania (NBR), will handle negotiations with the troika. He is Ponta’s proposal to head the Finance Ministry and should also be deputy PM. “The letter of intent will be finalized late this week and our intention is to approve it in the government and hand it to the IMF mission,” said Georgescu, quoted by Agerpres newswire. A 15 percent hike in wages in the public sector and the reinstatement of social insurance contributions for pensions, recently pronounced unconstitutional, are the main challenges for the cabinet, which will also impact the deficit.

According to Georgescu, Romania will have a budget deficit below 3 percent of GDP, taking into account additional expenditure for wages and pensions, although the country had set an ambitious deficit target of 1.9 percent of GDP. Following the political uncertainty, the Romanian currency (the RON) lost almost 1 percent against the euro last week, reaching an exchange rate of 4.4078 units.

Ponta said the ministers of finance, economy, healthcare and labor had already started technical discussions with the IMF mission in order to gauge the impact of additional expenditure on the budget.

Government’s fault

The Prime Minister

The no-confidence motion that led to the overthrow of the Ungureanu government centered on the privatization of stateowned enterprises and mineral resources and the allocation of EUR 150 million from government reserves along political criteria, with the largest share going to parties in the center-right coalition. The setting up of a Hungarian branch (through which optional classes can be taken in Hungarian, rather than Romanian) within the University of Medicine and Pharmacy in Targu Mures was another factor.

The opposition said that the government had given in to blackmail from interest groups by privatizing state-owned enterprises and granting exploitation permits for resources. However, the EUR 200.7 million deal involving copper mining company Cupru Min and Canadian BayFront Capital failed. Around 60 percent of Romania’s copper resources can be found in the Rosia Poieni mine, owned by Cupru Min. The insufficient absorption of EU funds, only EUR 194 million in three months, weak support for SMEs and the failure to attract FDI, along with the inability to cut social contributions (CAS) paid by employers, convinced MPs to vote against the government, pundits say. ∫

Victor Ponta, 39, became president of the social democratic party (PSD) in 2010, nine years after joining the party as a member, at the invitation of Adrian Nastase, who was prime minister at that time. Ponta, a prosecutor by profession, was nicknamed “Little Titulescu” by Nastase, who was his teacher at law school. (Nicolae Titulescu was a Romanian diplomat and politician who strived to steer Romania away from Nazism in the 1930s.)

Ponta graduated from the Faculty of Law in 1995 and worked as a prosecutor specializing in economic and financial crimes through to 2001, when he coordinated the anti-money laundering office. In the next three years, Ponta headed the Inspection Body of the government and got a PhD in penal law from Bucharest University. He has been an MP since 2004 and was briefly minister-delegate for Parliament in 2008, under the Boc government.

In February 2010, he defeated Mircea Geoana, who had recently lost the presidential race to Traian Basescu, in the runoff for the PSD presidency. In February 2011, the social liberal union (USL) was founded, comprising the PSD, PNL (Liberal Party) and PC (Conservative Party). The heads of the parties became co-presidents of the USL, aiming to unite the voices of the opposition.

www.business-review.ro Business Review | May 7 - 13, 2012

Public Finance & deputy PM

FOCUS 9 for Mugur Isarescu and Crin Antonescu during their presidential runs and has been general secretary of the liberal party (PNL) since 2011. Hellvig holds a PhD in international relations from the SNSPA.

pointed state secretary in the Healthcare Ministry this January. He was general executive director of the national insurance house (CNAS) between 2005 and 2008.

and minister of interior to 2004. He has been a member of the PSD since 1994 and holds a PhD in automotive construction technology.

Transport

Communications

Daniel Chitoiu, 44, has been president of the Chamber of Fiscal Consultants in Romania since 2007 and is an MP. He was president of the national fiscal agency (ANAF) between 2004 and 2008, and has a PhD in economics from the ASE.

Ovidiu Silaghi, 49, was minister for SMEs, commerce, tourism and the liberal professions between 2007 and 2010 and is a former MP. Silaghi graduated from the Faculty of Precision Mechanics at the Transylvania University in Brasov, later obtaining postgraduate degrees in management and law.

Dan Nica, 51, has been an MP since 1996 and was minister of communications and the information society between 2000 and 2004. He was minister of administration and the interior and briefly deputy PM in 2009. Nica graduated from the Faculty of Electronics and Telecommunications in Iasi

Victor Paul Dobre, 60, was state secretary for relations with prefectures at the Ministry of Administration and Interior between 2005 and 2008 after becoming a PNL member in 1991. He graduated from the Faculty of Mechanics within the Polytechnics Institute in Galati.

Culture

Environment

Agriculture

Mircea Diaconu, 62, is a popular actor who has appeared in numerous stage plays and films. He is president of the C.I. Nottara theatre and an MP. Diaconu graduated from the I.L. Caragiale Institute of Theatrical and Cinematographical Art.

Rovana Plumb, 51, is an MEP and vice-president of the social democratic party (PSD).

She holds a PhD in the management of industrial systems from the Polytechnics University.

Daniel Constantin, 33, is president of the Conservative Party (PC) and has had several positions in the Agriculture Ministry.

He graduated from the University of Agronomic Sciences and Veterinary Medicine.

European Affairs

Mariana Campeanu, 64, is an MP and member of the labor and social security commission within the Chamber of Deputies. She graduated from the Faculty of Economical Calculus and Cybernetics at the ASE.

Justice

Education

Defense

Corina Dumitrescu, 48, has headed the Dimitrie Cantemir private university since 2007 and is president of the managing board at the Association of Private Universities in Romania. She has a PhD in law from the Babes-Bolyai University.

Corneliu Dobritoiu, 56, is a major general who served as state secretary and head of the department of defense and planning within the Ministry of Defense from 2006. He graduated from the Nicolae Balcescu Academy of Terrestrial Forces.

Public Healthcare

Interior

Vasile Cepoi, 58, is an internal physician, specialized in nephrology, who was ap-

Ioan Rus, 57, was minister of interior and vice-president between 2000 and 2003,

Florin Georgescu, 58, has been head-vice governor and vice-president of the administration board at the National Bank of Romania (NBR) since 2004 and holds a PhD in economics from the Academy of Economic Studies (ASE), where he is professor.

Economy

Leonard Orban, 50, a technocrat who has managed the EU affairs portfolio since 2010, remains in the government. He was EC for Multilingualism between 2007 and 2010. Orban graduated from the Faculty of Mechanics at the Brasov University.

Foreign Affairs Andrei Marga, 65, was head of the BabesBolyai University from 2008 until this year and previously held leading academic positions at the same university, where he got his PhD in philosophy.

Regional Development & Tourism Eduard Hellvig, 37, was campaign adviser

Labor

Titus Corlatean, 44, has been an MP since 2004 and is secretary of the foreign policy commission at the Chamber of Deputies. He graduated from the Law Faculty at Bucharest University.

Administration

Minister-delegate for Parliament Mircea Dusa, 57, has been an MP since 2004 and vice-president of the commission for administration, land management and ecological balance since 2011.

He graduated in economic studies from the ASE.

Minister-delegate for the Business Environment Lucian Isar, 35, has had executive positions at Bancpost since 2006, although he resigned from the lender this January.

He was head of the trading unit at Citibank Romania for eight years. Isar holds a PhD in economy from the ASE.

Minister-delegate for Social Dialogue Liviu Marian Pop, 38, has been general secretary of the Federation of Free Trade Unions (FSLI) since 2007 and president of the Free Trade Union Maramures since 2004. He graduated in mathematics from the Faculty of Mathematics and Informatics at the Babes-Bolyai University.

www.business-review.ro Business Review | May 7 - 13, 2012

10 SOCIAL ECONOMY

Social economy gains prominence on local market While in other countries social enterprises play a significant role in the economy, Romania is still far from being a flag-bearer in this area. But there is great potential for the future as the legal framework that regulates these concepts is becoming clearer. ∫ ANDA SEBESI

“At present, more and more people with experience in traditional business are working on social entrepreneurship ideas that they think will be more rewarding” Ancuta Vamesu, coordinator for the social economy at the Social Economy Institute/Civil Society Development Foundation (FDSC) Mutual benefit societies, such as CARP Omenia, are among the social entrepreneurship initiatives that have managed to endure. “These initiatives are real ‘malls’ of services – from hair salons, dental surgeries, electronic repair shops, day centers, computer center and trips, all at low prices for pensioners, especially hard-up ones,” says Vamesu. The business model is based on a system of small financial contributions (less than EUR 1) from members and provides services to a community of about 20,000-30,000 people. Mutual benefit societies also lend money to borrowers considered too poor by other financial institutions.

“It is about serving the low-income client, which means that such customers are seen as a target market rather than a

Photo: Mihai Constantineanu

While the concepts of the social economy and social entrepreneurship are well known and developed in Western Europe and the US, they remain in an incipient stage in Romania. Plenty of such initiatives come from NGOs active in the fields of integrating disadvantaged people in the labor market (Fundatia pentru Voi), social inclusion (Ateliere fara Frontiere) and recycling, manufacturing and sustainable consumption (Viitor Plus).

But all have a very complex business model.

“At present, more and more people with experience in traditional business are working on social entrepreneurship ideas that they think will be more rewarding. Besides, they have the necessary knowledge to make these initiatives happen and a different way of thinking from the non-profit sector,” says Ancuta Vamesu, coordinator for the social economy at the Social Economy Institute/Civil Society Development Foundation (FDSC).

Cash for causes: funds are available for social economy projects weight on the shoulders of the social assistance system,” she adds.

According to Vamesu, who quotes data from the Social Economy Atlas, the social economy sector supplies four percent of jobs in the Romanian private sector. But she warns that in fields like cooperatives and mutual societies Romania lags behind developed countries.

“Compared with other EU members, cooperatives have a minor role in Romania while mutual societies – which are very important players on the European health insurance market for example – are not present on the local market,” says Vamesu.

She adds that cooperatives have a significant market share in key economic sectors in the majority of EU members: agriculture (83 percent in Holland, 79 percent in Finland, 55 percent in Italy and 50 percent in France), forestry (60 percent in Sweden and 31 percent in Finland), banking (50 percent in France, 37 percent in Cyprus, 35 percent in Finland, 31 percent in Austria and 21 percent in Germany), retail (consumption cooperatives have a market share of about 36 percent in Finland and 20 percent in Sweden), pharmacy and medical services (21 percent in Spain and 18 percent in Belgium). “For example cooperatives supply 500,000 jobs in Poland.

In Romania it is over 40, 000,” says the expert.

The Sectoral Operational Program for the Development of Human Resources (POSDRU) financed by the Social European Fund (FSE) has given a significant impetus to the social economy and social entrepreneurship by offering

several hundreds of millions of euro to help develop this sector. But there is bad news too: the size of the fund meant that large programs were conceived. Strategic projects of up to EUR 5 million, which did not allow for micro development, were put forward. Besides, the legal framework is not tight.

“For example, the law that regulates foundations and associations allows them to carry out economic activities but just as a secondary condition. Plus, private sources of financing and more flexible ones than POSDRU simply don’t exist and there is no culture of investing in the social economy and social entrepreneurship,” says Vamesu. She adds that it is not yet clear if the management authority from the Ministry of Labor will make funds available for this field in the future, even though it has proved to have a good capacity of fund absorption.

CO-OPS in numbers

40,000 jobs created by cooperatives in Romania

“The law that regulates foundations and associations allows them to carry out economic activities but just as a secondary condition. Private sources of financing and more flexible ones than POSDRU simply don’t exist and there is no culture of investing in the social economy and social entrepreneurship” Ancuta Vamesu, coordinator for the social economy at the Social Economy Institute/Civil Society Development Foundation (FDSC) Social enterprises in Romania are faced with the same problem as any other start-up: lack of financing. In addition it is much harder for them to develop because they don’t have their own financial resources at their disposal.

“Micro-lending is a tool that could be used and yet it is not widely available in Romania. Fortunately, the social economy and social entrepreneurship will continue to be a priority for European funds because this is stipulated in the Social Business Initiative launched by the European Commission at the end of last year. But the funds will be available after 2014,” says Vamesu. Turning to the legal difficulties, the expert says that the draft law proposed by the Ministry of Labor in December last year takes a specific approach exclusively centered on fighting social exclusion and creating jobs for the under-privileged.

But the social economy has great potential on the local market. “We believe that it has a bigger role to play in very different fields like agricultural and rural development, solving environmental problems and promoting an economic democracy that enables everybody to participate in different economic activities – from taking out loans and health insurance to creating their own jobs,” concludes Vamesu.

anda.sebesi@business-review.ro

www.business-review.ro Business Review | May 7 - 13, 2012

SOCIAL ECONOMY 11

Local NGO paves way to help the disadvantaged Part of a project promoting partnerships for the development of the social economy, Romanian NGO Fundatia Dezvoltarea Popoarelor has opened a mosaic factory, following an investment of about EUR 192,000, which will employ 12 young people with social integration problems.

Photo: Laurentiu Obae

Simona Carobene, project manager

ment like the one with Menatwork are vital for developing such projects, said Carobene.

The foundation’s plans for the mosaic factory are to produce about 1,800 sqm of mosaic per month and to reach a turnover of RON 1.25 million (approximately EUR 290,000) by 2013. “One cannot talk about the social economy and exclude the business dimension,” said the project manager, explaining that like any other company, the factory will have to be profitable in order both to sustain itself and finance the foundation’s projects.

The NGO works with 240 disadvantaged people, and in addition to Bucharest has branches in Cluj, Oradea and Dambovita.

The Italian model

While the social economy is in an early stage in Romania, countries like Italy have a long history in the field. Social enterprises promoting social and profesThe recently opened Proiect Mozaic sional integration have been active in (Project Mosaic) is the first local mosaic Italy for more than 30 years, said Marco pavement factory financed from EU Nottari, director of Italian social coopfunds based on the principles of a social erative Il Carro, which was set up some enterprise. The project is being devel25 years ago. oped by Romanian NGO Fundatia DezThe same business management prinvoltarea Popoarelor (the People's Deciples apply to a social enterprise as to velopment Foundation) which offers edany another company, explained Nottari. ucational and socio-professional integration opportunities to disadvantaged “The cooperative’s final purpose is not to make money but money is vital in order people. for it to meet its mission – that of inteThe initial investment for the startgrating disabled people. Without efficient up is RON 827,014 (approximately EUR management, professional integration 192,000), which also covers the compawould not be possible,” he added. ny’s costs for its first four months of acIl Carro has an annual turnover of tivity. Some 95 percent of the money comes from the European Social Fund. about EUR 2 million, out of which 10 percent is profit. “The Italian state gives us Initially, the mosaic factory, which is EUR 8,000 each year and by comparison located on the outskirts of our turnover was EUR 2 million. So we eiBucharest, will create 12 jobs for peother support ourselves or might as well ple aged between 20 and 23 who close down,” he added. have lived in institutions and suffered The cooperative’s activity is office from social exclusion. “With this social cleaning and green space maintenance involvement, the factory will obtain the services as well as manufacturing and status of a protected enterprise which handicrafts. It has 87 employees out of benefits from Law 448/2006. This law whom 27 are disadvantaged. stipulates that every company that employs more than 50 people must either hire disabled people (a four percent simona.bazavan @business-review.ro share of its workforce) or pay the state a tax. A third possibility would be to purchase goods or services from a protected unit such as ours,” said Simona Carobene, project manager.

The foundation decided to set up the social enterprise after visiting about 18 social cooperatives in Italy, said Carobene, but the idea to produce mosaic pavement came from Luigi Caverni, manager and main shareholder of constructions materials company Menatwork and a supporter of the foundation. Important steps: the project provides opPartnerships with the business environportunities for disadvantaged people

∫ SIMONA BAZAVAN

Photo: Laurentiu Obae

www.business-review.ro Business Review | May 7 - 13, 2012

12 CITY RESTAURANT REVIEW

The upper crust

Photo: Laurentiu Obae

Crumbs of comfort: you won’t knead a lot of dough to have your daily bread at the London Street Bakery

London Street Bakery, Green Lake Residences, 42 Petre Aurelian Street, Baneasa, 021 380 39 99 DEBBIE STOWE Early evening, a brand new housing estate. No human life to be seen, just a few dogs lying about. It might be the set of a sci-fi movie where zombies have vanquished everybody. Only the zombies are thoughtful gastronomes and have left a restaurant operating.

The restaurant is the London Street Bakery. It is similarly devoid of people, except for a very charming waiter and a chef or two in a huge, glass-fronted kitchen. Sun-washed yellow walls, a few large round wooden tables and some cozy booths give it a tastefully understated and laidback feel, and there are nice touches like bottles of Dom Perignon for candleholders. The London theme is reflected in child-style drawings of landmarks like Big Ben and red buses on the walls.

If you’ve eaten out in London, unless you are lucky, or rich, or a Londoner who

knows where to go, you might be thinking, “Hmm, London – bad food, high prices.” The London Street Bakery deals in the exact opposite – super food at prices that are a bargain even for Bucharest.

This is a place conceived of and run by people who get it. There is no plasma television. There is no smoking (though smokers can go on the terrace). Fitze and pitipoanca types will hate it, because it’s not vulgar, it’s not showy and there’s nobody walking past to gawk at you. Think gastro-pub in Islington (an uber-trendy district of North London) that’s big on the local and the organic and you’ll get the idea.

Like most top-tier eateries, the menu focuses on quality over quantity, and there are four or five choices in each section (starters, dips, breads, mains and desserts). It’s all online so you can investigate it for yourself, but basically juggles modern European gastronomy with old-school-but-now-fashionable-again British fare.

Solid starter chicken liver pate (RON 20) was given a funky blue cheese upgrade and served with pickled cherries whose tartness neatly cut through the dense meatiness of the pate. It came with house bread – of which more later.

RESTAURANTS IN BUCHAREST Where else to find European cuisine

Smoked trout fishcakes (RON 20) balanced delicacy with a no-nonsense piscatorial taste. Spinach soup and quail Scotch eggs are other options.

Al Sapore In an upmarket take on chips, we next 7 Unirii Blv. tucked into potato wedges, served with Reservations 0723 572 534 a choice of dips (RON 20). Nothing fancy, the wedges were fluffy and light, a The chef, originally from the Italian region of Marche, has put together a menu with moreish canvass for the red pepper and a variety of “marchigiane” seafood spewalnut pesto, olive tapenade and apple cialties. Family culinary secrets of over 60 and plum chutney to do their stuff. years, handed down from father to son, This sums up the London Street Bakand the importance given to fresh and ery’s ethos. The house doesn’t try to be ostentatious about its food. You won’t healthy ingredients make the restaurant find a Heston Blumenthal wannabe in the a good choice. kitchen fusing molecules together. It’s about staple dishes, fashioned thoughtConcerto fully from quality ingredients and someGrand Hotel Continental, times given an inventive twist.

56 Calea Victoriei From the mains, spinach risotto with Reservations: 0372 010 300 blue cheese (RON 30) was topped with spiced caramelized walnuts, whose tang offset the creaminess of the rice and cheese. Lincolnshire sausages (RON 35) came with mashed potato and caramelized onion gravy and were the dependable comfort food you want if you order sausages. Another traditional dish that will appeal to red-blooded carnivore types was the beef, mushroom and red wine pie, while at the lighter end of the culinary spectrum there was quiche with leek, watercress, mushroom and sheep’s It’s not cheap here (though if you order cheese. prudently and stick to soft drinks you Panna cotta with strawberry, lime could pay about the same as you would at and basil salsa rounded things off with an other places not half as good). However, appropriately creamy flourish. glass of house wine aside, Concerto ofWith the most expensive mains at fers superb value for money. Quality, RON 35, garnishes at RON 12 and the presentation, service and ambience were costliest dessert RON 15, the London all faultless.

Street Bakery is affordable, something it presumably achieves by its zeitgeisty Heritage reliance on local produce – rather than 19 Polona Street air-freighting in lamb from New Zealand Reservations: 021 210 8850 or beef from Argentina to bedazzle its diners at a whacking carbon footprint – The menu is fixed (rather than a long, teand its peripheral location. dious, rambling a la carte which so They do charge for the bread (RON many restaurants choose here) with 20/10 for sourdough and RON for a basthree variations: ‘Classic’, ‘Evolution’, and ket of the house stuff). I would normal- ‘Vegetarian’. And in a catalogue of surly consider this rather grasping, but then prises you will see that Heritage is afthis is not normal bread (and the place fordable. does position itself as a bakery). Made inhouse using flour from an organic farm Mica Elvetie – St. Moritz in Timis (we were proudly furnished 64 Sandu Aldea with a leaflet detailing its provenance), Reservations:021 224 5017 the range features everything from red wine and beer to flax and pumpkin seeds. The restaurant promises “refined dishes House wine starts at a fair enough made with fresh ingredients. You can eat RON 12 a glass and there’s a long spirits a gazpacho, a salad, sea bass fillet in menu with most costing around RON 14. beer sauce and, of course, a chilled If you do want to drop some money you dessert dusted with limoneta or pineapcan have a Biotta juice for RON 25. I’m ple carpaccio.” Enjoy your meal on the not sure what Biotta juice is but I am sure garden terrace.

Gwyneth Paltrow would approve.

The current scarcity of customers Novi Aquarium can only be due to the London Street 111-113 Calea Floreasca Bakery’s relatively recent establishment Reservations: 031 405 0597 and, in particular, its peripheral location in the Green Lake Residences complex, in With its interior and ambiance both exBaneasa. If this place were in Lipscani cellent, the restaurant is aiming high. they’d be queuing round the block. I Fish features predominantly throughout quite enjoyed having it to ourselves and the menu – refreshing in a town that am almost loath to publicize its sometimes seems to consider anything many merits. So just forget I said anypiscatorial to be a poor relation to meat, thing. ∫ or to overcook it into oblivion.

www.business-review.ro Business Review | May 7 - 13, 2012

CITY 13

CULTURAL EVENTS AGENDA FESTIVALS Transylvania International Film Festival (TIFF) June 1-10, Cluj-Napoca June 14-17, Sibiu

ductor’s life; several documentaries on Celibidache; book launches; and concerts delivered by his former students.

The concerts will be held at the Romanian Athenaeum.

European Film Festival May 4-13, Bucharest May 10-13, Brasov May 17-20, Timisoara May 17-20, Targu Mures

The 11th run of this well established film festival will include in the competition selection 12 films from countries such as Island, Norway, US, Germany, Denmark, Holland, Israel, Austria, Canada, Russia and Chile. The winner will be decided by a jury made up of director Samuel Maoz; Kjartan Sveinsson, member of Icelandic post-rock band Sigur Ros; Screen International film critic Mark Adams; and Romanian actress Ana Ularu. Danish cinematography will be celebrated at this year’s festival, with a record 12 Danish films being screened during the event, coinciding with Denmark’s period holding the presidency of the European Union.

Australian film will come under the lens in the Focus Australia part of the festival, where the best productions since 2012 will be screened.

TIFF is organized by the Association for the Promotion of Romanian Film (APFR).

Sergiu Celibidache Festival

May 3-June 7, Bucharest The event, which is organized under the patronage of the Romanian presidency and in partnership with the Bucharest city hall, celebrates 100 years since the birth of Sergiu Celibidache. This year is the UNESCO anniversary of the Romanian conductor.

The festival will include master classes delivered by Ida Haendel, Helmut Nicolai, Dorin Marc, Michael Martin Kofler, Wolfgang Gaag, Rony Rogoff and Enrique Garcia Asensio; a photo exhibition showcasing moments from the con-

May 24-27, Iasi Fifty-two films from 26 countries are part of the program of the 16th European Film Festival, organized this month by the Romanian Cultural Institute, with the support of the embassies and cultural centers representing European countries. The festival will move throughout the country from Bucharest to Brasov, Timisoara, Targu Mures and Iasi.

The festival program includes three Romanian documentaries: Turn off the Lights, directed by Ivana Mladenovici (which was selected for the Tribeca festival); After Revolution, directed by Laurentiu Calci; and Teodora the Sinner, by Anca Hirte.

EUROPAfest May 4-19, Bucharest Europe’s only festival that encompasses four music genres – jazz, blues, pop and classical – will include one whole week dedicated to jazz.

Between 12 and 19 May, the Odeon Theater will host a nightly series of concerts under the banner EUROPAfest – 100% jazz and more. This international jazz competition will be contested by troupes from over 20 countries – the USA, Poland, Switzerland, Slovenia, the UK, Germany, the Netherlands, Israel, Armenia, Australia, Brazil, France, Ireland, Italy, Japan, Colombia, Russia, Moldova, Norway, Romania, Spain, Sweden and Hungary.

The musicians due to perform in the competition have previously graced international events such as the Montreux Jazz Festival, Red Sea International Jazz Festival and Lionel Hampton Jazz Festival USA. Music fans can also expect to enjoy fado, blues, Balkan rhythms, African-American and Japanese sounds.

www.business-review.ro Business Review | May 7 - 13, 2012

14 IN TOUCH FILM REVIEW

BUSINESS AGENDA May 7 09:00 The Foreign Investors Council (FIC) organizes a conference on the Romanian energy sector at Radisson Blu Hotel.

Mariana Gheorghe, CEO OMV Petrom, will attend. By invitation only.

May 8 Sandolin organizes an event to mark the launch of a new product at the MediaPro Studios in Buftea. By invitation only.

May 10 ∫EVENT 18:00 BR organizes the third British Investors Forum at Grand Continental Hotel. Angus Slater, chief marketing officer of Vodafone Romania, and Mamas Koutsoyiannis, managing director at Baker Tilly, will attend. By invitation only.

May 11 09:30 Sheffield MBA Open Seminar is organized at the Hilton Hotel. Find out more at www.city-sheffield.ro.

May 23 ∫EVENT 09:00 BR organizes the first edition of

Focus on Agriculture at Ramada Plaza Bucharest. By invitation only. http://business-review.ro/brevents/ May 30 Law firm Tuca Zbarcea & Asociatii organizes a seminar on the fiscal implications of enforcement obligation and the assignment of debt at City Plaza Hotel, Cluj-Napoca.

The event will also address the impact of the new Civil Code and the new Civil Procedure Code. By invitation only.

May 31 – June 3 TIBCO, the Bucharest International Fair for Consumer Goods, is organized at Romexpo Exhibition Center.

June 11 -12 Bancpost organizes the delegation and business forum Go International, entitled Greece-Romania: At the Confluence of Regional Commercial Synergies, at JW Marriott Hotel. The event is supported by the Chamber of Commerce and Industry of Romania and the Hellenic-Romanian Chamber of Commerce and Industry.

WHO’S NEWS Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro

Johann Lurf will step down as president of Volksbank Romania in June, after holding the position for the past two years. The new president will be announced after receiving the approval of the central bank, Volksbank representatives have said. Lurf has over 30 years of professional experience in banking, 15 of which have been spent with the Volksbank Group. Before coming to Romania he led the group’s subsidiary in the Czech Republic for 14 years.

Dragomir has considerable FMCG experience. Before joining the company, he held supervising positions in the financial department of Ursus SA. He also served as financial manager of Mol Romania and former Artima and as financial manager and deputy CEO of Albalact.

Rene Rosenberg

is the new CFO of retail chain Profi Rom Food.

He replaces Carel Bruseker, the Dutchman who has managed Profi’s finances since 2009, when the company was taken over by Enterprise Investors.

is the new CEO of Affichage Romania. He has over 13 years of professional experience in the outdoor advertising industry. Rosenberg has previously worked for German company OOH Wall AG. Since 1999 he has held several positions at Wall AG, the most recent being regional director for Eastern Europe and management director for Wall Bulgaria Affichage has almost 5,000 locations in Romania in about 60 cities.

Some 26 percent of the 5,000 are in Bucharest.

ISSN No. 1453 - 729X

FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi ART DIRECTOR Alexandru Oriean PHOTO EDITOR: Mihai Constantineanu PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu

Dumitru Dragomir

The Iron Lady

Not for turning: Meryl Streep is masterful in this enjoyable biopic

DEBBIE STOWE

The life of Britain’s first – and only – female prime minister was always going to be juicy biopic material. It’s pure Hollywood: a larger than life protagonist; a meteoric rise that smashed through class and gender barriers, personal tragedy and political unrest.

The trickiness for director Phyllida Lloyd is that Margaret Thatcher is still alive and battling dementia, leading to uneasiness over the film’s depiction of the present day. Would Lloyd go too easy on a woman seen as the embodiment of the greed and selfishness that begat the current banking crisis? Or, would scenes of a confused old lady belittle the image of one of the UK’s greatest prime ministers, a conviction politician who stood up for Britain and would brook no nonsense, whether from the EU, the Soviets or the sexist snobs in Parliament?

Most of the more recent buzz around the film has centered on Meryl Streep’s Oscar-winning performance. It is not exaggerated: Streep’s turn is so convincing that it’s easy to forget you’re not watching a documentary, and this alone would justify seeing The Iron Lady.

The film had no way to please everybody. One joke that did the rounds on its release was that it was “not suitable for min-

ers” (Thatcher’s government closed coal mines to rancorous protests). Covering historical events that include an 11-year period in office that made her the UK’s longest serving PM in the 20th century, the narrative inevitably skimps on depth and rattles through major episodes such as the Falklands War, the IRA bombing of the Grand Hotel, strikes and riots and Thatcher’s growing international prominence.

But the frustration is only because what is shown of her history is so enjoyable, and more would have been welcome. Regardless of your politics, the film’s portrayal of Mrs T’s determined rise through the ranks, to the shock and discomfort of the Westminster cliques, is delightful. Although her belligerence is touched upon, The Iron Lady emerges as a likeable heroine, thumbing her nose at the old boys’ club.

Though done with sensitivity, the modern-day scenes, which show a rambling baroness, chatting confusedly to her late husband Dennis (Jim Broadbent), are not so agreeable, in part owing to the fears of loss of mental faculties and independence we all harbor, but also because they steal screen-time from Thatcher’s ascent and premiership. Less emphasis on this period might have served the film better.

Nonetheless, the contrast between an international stateswoman who defied all the odds to rewrite British history and stamp her indelible print on British life and the elderly dementia sufferer paints a powerful portrait of a colorful political titan, while encapsulating the tragedy of the inevitable human trajectory.

PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 Fax: 031.040.09.34 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro

Director: Phyllida Lloyd Starring: Meryl Streep, Jim Broadbent On: Cinema City Cotroceni, Glendale Studio, Grand City Dogoplex Baneasa, Movieplex, The Light