Moldova Squabbles with Romania, Cozies with Russia

Moldova and Romania are close to severing relations. Moldova expelled two employees of the Romanian embassy on Wednesday and called its ambassador in Bucharest back for consultations. The Romanian Foreign Ministry intends to take responsive measures. This is the most heated conflict the countries have had in Moldova's 16 years of independence.
The conflict centers around a statement made by Romanian Ambassador to Moldova Filip Teodorescu late last month about the Paris Peace Accord of 1947, between the victor in World War Two and the allies of Nazi Germany. “The 1947 accord is a historical falsification that was signed because Romania was an occupied country,” Teodorescu declared, adding that it should no longer be referred to in support of the legal basis for the demarcation of the Romanian-Moldovan border. That border was the River Prut in Soviet times.

The Moldovan Foreign Ministry summoned Teodorescu for an explanation of his statement and to remind him that the 1969 Vienna Convention and 1978 UN Convention that confirm that there is no time limit on boundaries established by international agreement. Moldovan President Vladimir Voronin stated that he would complain to the European Union about the statements. Romania became an EU member this year.

“I expected many of the problems in our relations to disappear after Romania joined the EU,” said Voronin, “but relations between Moldova and Romania have not changed. All those statements are so stupid they don't deserve criticism. Let Europe judge us.” True to his word, Voronin accused Romania of “continual aggression” while he was visiting Brussels last week.

Moldova and Romania have had conflicts before and, since the Party of the Communists came to power in Moldova in 2001, they have been a common occurrence. Chisinau often accuses Bucharest of funding the opposition and the Romanian Orthodox Church of wanting to set up a bishopric in Moldova, where the Russian Orthodox Church predominates. Most of all, Voronin is annoyed by Romanian President Traian Besescu's claim that there is only one people in the two countries – Romanians. But when relations between Moldova and Russia were cool and Moldova was financially straitened, Besescu came to Voronin's aid. Now that Voronin is once again welcome at the Kremlin, he is freer in expressing his true opinion of Romania.
www.kommersant.com

Misleading advertising takes Romania into new EU infringement procedures

de Radu Big HotNews.ro
Vineri, 14 decembrie 2007, 2:42 English

Romanian problems are far from consisting exclusively in the car first registration tax (car tax, in short) and in the ever-malfunctioning 112 emergency call issues, but also in misleading advertising. The European Commission opened in August 2007 an official community right procedure against Romania, given the fact that authorities failed to align the existing legislation to the EU rules.

Responsible authorities claim that the both chambers of the Parliament approved the law and the only thing remaining is for the President to promulgate it. Brussels officials mentioned for Hotnews.ro that they have been informed on the fact that the law will be adopted and there is only a small chance for Romania to receive any penalties on the issue.

A press release on Wednesday informed that the European Commission will see coming into force a series of wide communitarian measures designed to fight the "false free of charge" advertising, aggressive commercial practices and children harassing adds, starting on December 12.

The restrictions are presented in detail in the unfair commercial practice law (the 2005/29/CE directive), which aims at 12 of the most popular abusive advertising practices. At this moment, 14 countries managed to put up and comply with the EU regulations, while 13 states, including Romania, still have to work on it. As a result, the European Commission opened infringement procedures against the remaining 13 states.

Romania to stop sports event violence

BUCHAREST, Romania (UPI) -- The lower house of the Romanian Parliament has approved a law aimed at preventing violence and rioting at sports events, Bucharest media reported.

The bill, already passed by the Senate, includes prison terms of up to four years, fines between $414 and $1,242 and a ban on attending sports events from three months to three years for hooliganism, the Romanian news agency Mediafax said.

The man who initiated the draft law, Dumitru Dragomir, president of the Romanian soccer league and a parliamentary deputy, said violence at sports events is getting out of control and Romania needed punishments that met European Union standards.

The law bans bringing torches and fireworks into stadiums and violators face jail terms up to three years if people are injured.

Special cameras will watch fans in the stands during events.

Fans protested the bill claiming it limits displaying their feelings and threatened to sue Romania in a European court of justice.

Romania Considers it Important to Co-operate with Azerbaijan in Ensuring Europe’s Energy Security Romania Considers it Important to Co-operate with A


Azerbaijan, Baku /corr. TrendCapital U.Ismaylova / The Government of Romania considers it important to co-operate with Azerbaijan in ensuring the energy security of Europe, said Romania’s Deputy Minister of Economy of Finance, Viroel Palashka, at the meeting with the Administration of Azerbaijan’s Ministry of Industry and Energy, Rasim Mammadov.

According to Palashka, Romania is holding talks with Kazakhstan and Turkmenistan. During the meeting in Baku, the parties discussed the realization of the Trans-Caspian pipeline and Nabucco project, as well as Romania’s role in realizing the project and prospects of co-operation within the areas of manufacturing oil machinery and oil and gas production.

The Romanian delegation also included the Vice President of Romgz, Luchian Stanchi, Deputy Director of Petrom, Dorin Brau, Director General of Konpet, Livin Ilashu, Director General of Oil Terminal, Viores Sorin Uiutirenai, Director General of Armahkgaz, Mirchea Veschan, Director General of Transgaz, Ioan Rusi.

Romania signs delayed order for seven Alenia Aeronautica C-27J transports

Romania will receive its first of seven Alenia Aeronautica C-27J Spartan tactical transports in late 2008, following the delayed confirmation of a €217 million ($318 million) deal. Signed in Bucharest on 7 December, the contract also covers the provision of pilot training and logistics support services, plus the delivery of a flight simulator, says the Finmeccanica company.

The C-27J was selected in November 2006 to replace the Romanian air force’s Antonov An-24/26s. Bucharest had initially hoped to begin acceptance trials with its first Spartan this month, but contract signature was delayed by almost a year following a legal challenge mounted by losing bidder EADS Casa, which had offered its C-295 to meet the requirement.

Romania’s final confirmation of the deal makes it the sixth nation to order the C-27J, with 12 having been delivered so far to Bulgaria, Greece, Italy and Lithuania, according to Flight’s MiliCAS database. The type has also been selected for the US Air Force/Army Joint Cargo Aircraft project, and Alenia Aeronautica says its order book for the type now stands at 117.

Delphi celebrates 10 years and plans further growth in Romania

WEBWIRE – Sunday, December 09, 2007

Delphi organization celebrates 10 years of doing business in Romania, at the same time expanding with the recently announced new diesel engine management system (EMS) components plant in Iasi.

The company has been operating in the country since 1997 when the first plant in Sannicolau Mare was opened. Today, Delphi’s two manufacturing Electrical/ Electronic Architecture (EEA) facilities in Sannicolau Mare and Ineu (northwest of Romania) employ collectively 10,000 people.

The anniversary creates a great occasion to summarize achievements and recognize employees who have been with Delphi from the beginning. Special events with personnel in Sannicolau Mare and Ineu took place in early December during which local authorities recognized Delphi for its commitment to development in the region.

"Having worked together for a decade, we built a team of professionals that still has perspective for further growth" said Cristian Gulicska, Delphi Packard EEA Romania Country Director. "We faced numerous challenges and proved that we are ready for further opportunities. From a time perspective, we consider the decision to establish operations in Romania successful"

Delphi’s investment criteria for Romania, as for all new regions, were to follow the group’s vehicle-maker customers, develop a skilled workforce, use the existing infrastructure and obtain local government support.

Electrical/ Electronic Architecture plant in Sannicolau Mare and Ineu

Delphi started its business in Romania with Electrical and Electronic Distribution Systems (E/EDS) production to support European car production. In 1999, Delphi completed the site development and construction of the second building in Sannicolau Mare. From 8,200 sqm in the beginning, the site was expanded to accommodate more customer programs and has grown to 22,000 sqm today.

The construction of the plant in Ineu began in May 2004. In November 2004, the first finished harness was manufactured. Today, the Delphi plant in Ineu is the main employer in the Arad area.

Delphi plants in Sannicolau Mare and Ineu manufacture Electrical/Electronic Architecture for several European automakers. The plants supply wiring harnesses —body, interior, doors and small harnesses — to customer assembly plants located in Western and Eastern Europe.

Delphi recently announced that its Romanian plants deliver their products for the new Renault Twingo model, having a short delivery time to the automaker’s Novo Mesto assembly plant in Slovenia. The wiring system is manufactured under the Kaizen Manufacturing System to ensure best-in-class quality and delivery. Delphi also supplies from Romania the complete Electrical/ Electronic Distribution Systems for the recently introduced Mercedes-Benz C-Class.

Delphi’s plants in Romania are committed to being a clean, safe and efficient workplace — offering opportunities for employees at all levels. As everywhere else in the world, Delphi offers career development opportunities, professional internal and external training in an environment based on teamwork.

To ensure the proper quality of the products, car manufacturers have always paid great attention to the quality within the complete supply chain. The common quality "language" in the automotive industry has been established through introduction of ISO/TS 16949 - quality standards agreed to by American, European and Japanese car manufacturers. Both Delphi EEA plants in Romania have already been recertified with ISO/TS 16949.

New Delphi Diesel Systems plant in Iasi

In a move to service its growing customer base, Delphi announced plans in mid-July 2007 to open a new diesel engine management system (EMS) components plant. It has already initiated activities in a leased facility (brownfield) which is a pre-existing industrial site in Iasi where Delphi will begin production of diesel pumps and injectors by the end of 2008.

Delphi has well-developed expansion plans that call for several additional investment projects to launch products specified in new business contracts that have already been awarded. Each of these future multi-million-dollar investment projects is for new buildings, machinery and equipment and will support attainment of long-range planned capacity in Iasi. Subject to Delphi’s board of directors supporting future investment projects, Delphi’s presence in Iasi, could reach more than 1,000 workers and total investment could exceed 100 million euros.

Currently Delphi is continuing its business plan of starting the brownfield operation. This part of our overall project is on schedule and Delphi is working on the planning for the greenfield. For more information about Delphi, visit http://www.delphi.com/media

For more information contact:

Delphi

Agnieszka Przymusinska

Agnieszka.Przymusinska@delphi.com

48 12 252 10 33

Romanian justice minister to resign amid corruption probe

BUCHAREST, Romania: Romania's justice minister, under investigation for allegedly abusing his position in a real estate deal, said he would hand in his resignation Monday.

Tudor Chiuariu, who became justice minister earlier this year, announced his intentions Sunday, two days after President Traian Basescu had publicly asked for his removal.

In September, anti-corruption prosecutors accused Chiuariu and a former telecommunications minister, Zsolt Nagy, of corruption in a real estate deal and asked Basescu to approve an investigation.

Investigations of public officials and former ministers must be approved by the president.

Prosecutors say Chiuariu and Nagy abused their positions when they sold real estate owned by the national post office in April to a private company reported to be linked to the ruling Liberal Party, of which Chiuariu is a member.

Chiuariu and Nagy have denied the allegations and Prime Minister Calin Popescu Tariceanu resisted pressure to fire the justice minister.

"I do not want personal and political disputes to affect the activity and the credibility of state institutions," Chiuariu said Sunday. "But I promise you that when this ridiculous set up is over, I will come back to continue" the reform of the justice system.


Chiuariu's predecessor, Monica Macovei, was widely credited with having pushed anti-corruption reforms. The prime minister fired her in April.

A month after he took up his position, Chiuariu came under criticism when he called for the removal of a senior anti-corruption prosecutor who is investigating several politicians.

Romania joined the European Union on Jan. 1 and was told to clean up high-level corruption.

Moldovans suspicious of Romania’s intentions

By Tony Barber
The Financial Times

White-haired, ruddy-faced, the monotonous fluency of his speech betraying his earlier career as a Soviet Communist party apparatchik, Vladimir Voronin has the glint of political battle in his eyes.

As he explained this week during a visit to Brussels, his adversary is Romania, the country that borders Moldova, of which he is president.

Mr Voronin was Soviet Moldavia’s interior minister in 1989 when the republic’s communist authorities used force to disperse thousands of anti-Soviet demonstrators in Chisinau, the capital.

Now Moldavia is Moldova, an independent but poor and fragile country of 4.3m people, vulnerable to pressure from Russia and Romania, its more powerful neighbours.

Mr Voronin, an ethnic Russian who became president in 2001, once pursued overtly pro-Russian policies. He adjusted his stance in 2003, largely because of Moscow’s support for Trans Dnestr, a separatist region of eastern Moldova inhabited mainly by Russians and Ukrainians.

If Moldova’s eastern, Russian problem refuses to go away, so too does its western, Romanian one.

In Brussels, Mr Voronin spoke forcefully about what he portrayed as a Romanian attempt to subvert Moldova’s independence.

“Romania doesn’t recognise our national identity. They don’t recognise a Moldovan ethnicity or Moldovan language. For them, there is no Moldovan history,” he told the Financial Times and two other reporters.

“Our relations are really difficult now with Romania. We understand that Romania is a European Union and Nato member, and we cannot afford to make political attacks on Romania. But we’ve discussed this with our European friends. More than that, I will send a message to all leaders of EU member-states in the next few days to explain the situation.”

The core of the issue is Moldovan identity. Many Romanians and foreign experts think there is practically no difference between a Romanian and a Moldovan in language and culture.

In its World Factbook, the US Central Intelligence Agency, which has no particular axe to grind on this subject, lists Moldova’s largest ethnic group as “Moldovan/Romanian, 78.2 per cent”.

The CIA also describes Moldovan as “virtually the same as the Romanian language”. Both entries neatly capture the difficulty of deciding if Moldovans are a nationality distinct from Romanians.

Much of modern Moldova fell under the Russian empire’s control in the 19th century, formed part of Romania between 1918 and 1940, and was under Soviet rule from 1945 to 1991.

In Mr Voronin’s view, Romania went beyond acceptable limits last week when its ambassador to Moldova said Bucharest would not sign a treaty recognising today’s Romanian-Moldovan frontier as delineated in a 1947 Soviet-Romanian accord.

For Moldova’s leaders, the implication was that Romania might one day lay claim to Moldovan territory. Mr Voronin said Romania was already undermining Moldovans’ identity by encouraging them to acquire Romanian passports.

“Some 10,000 Moldovan students study in Romania each year. After graduating in these institutions, the Moldovans come back with Romanian passports,” he said. “Moldovans can get Romanian citizenship on easy terms. For example, each of us can apply for Romanian citizenship by e-mail.”

However, asked if Romania might one day absorb Moldova, he strikes a defiant note. “No country has united with another one after joining the EU. It can’t be done. Moldova has existed for 650 years and will exist for at least another 6,500,” he told Moldovan TV last week.

Eastern European countries compete for lucrative Hollywood movie productions

VILNIUS, Lithuania: Ducking beneath a shower of bullets, three unshaven men in filthy overcoats jump out of a concealed forest dugout, dragging a heavy machine gun and shouting commands to fellow rebels.

A brutal battle ensues between Nazi soldiers and resistance fighters under the leaden sky, and in the din — replete with explosions — the cattle in a neighboring village trample away in fright.

But it's all an illusion on the set of "Defiance," a World War II action flick recounting the story of a Jewish resistance movement in the Polish-Belarussian forests.

The US$50 million (€33 million) production, set for 2008 release, was a major victory for Lithuania, a country of 3.4 million people, which beat out bigger Poland and Romania as potential shooting sites. Eastern European movie sites are fighting for Hollywood cash with nearly as much ferocity as the fake battles in the movies.

As producers Ed Zwick and Pieter Jan Brugge explained, while searching for ideal sites, they looked for a setting that had thick forests and an urban landscape nearby.

"We actually explored the location on the 'Google Earth' to see how the forest was accessible to the city center," said Zwick, producer of blockbusters including "The Last Samurai" and "Blood Diamond."

The two found no adequate settings around the Polish capital, Warsaw, and Romania's forests are high in the mountains and too far away from Bucharest. So they chose Vilnius, Lithuania's capital.


For the post-communist economies of Eastern Europe, international movie production is a bonanza.

Foreign movie productions brought some US$76 million (€52 million) to the Czech Republic in 2006, according to Dusana Chrenekova, spokeswoman for Barrandov Studios.

Bogdan Moncea, marketing director of Castel Film in Romania, said foreign film studios over the past five years have injected over US$183 million (€124 million) into the economy. This year, Castel Film produced "Adam Resurrected," a Holocaust-related movie directed by Paul Schrader and starring Willem Dafoe and Jeff Goldblum, as well as "Mirrors," a thriller starring Kiefer Sutherland.

But times have changed. In the early 1990s, Eastern European cities could entice Hollywood producers with a simple combination of Old World charm and significant cost savings. Now they must dangle technology, experience and even tax reductions in order to lure the multimillion dollar productions.

In Hungary, the government has approved a huge tax break for movie productions, and the Romanians may follow suit.

The incentives are paying off. Next year, a slew of grade-A films shot in Eastern Europe — including "Transsiberian" with Woody Harrelson and Ben Kingsley — will be released.

Competition among premier Eastern European locations is stiff, and each studio does what it can to entice foreign productions — particularly now that the region has become considerably more expensive.

MediaPro, a Romanian studio that recently produced Joel Schumacher's horror flick "Town Creek," estimates that filming costs are 20 percent lower in Romania than in the Czech Republic.

But Chrenekova of Barrandov Studios, which last year opened what it claims is Europe's largest soundproof stage, measuring 44,800 square feet, cautions that you get what you pay for.

"As far as Romania and Bulgaria, which are the cheapest places for moviemaking, they don't have the proper infrastructure and lack the specialists we have," she said.

Ramunas Skikas, director of the Lithuanian film studios LKS, agrees that the final decision often boils down to funds.

"Most of us (Eastern European countries) offer similar scenery and quality of services, but the one thing that makes up filmmakers' minds is the production cost," Skikas said, adding that costs in Lithuania are 20 percent lower than in competing countries.

The Lithuanian countryside was used for the sweeping battle scenes in the TV-miniseries "War and Peace" based on Leo Tolstoy's legendary novel. The four-part series, produced by several European countries, was first shown in October in Belgium.

But as countries such as Hungary and the Czech Republic catch up with Western Europe in terms of prices, government support can mean the difference — which is why Hungary now offers filmmakers a 20 percent tax rebate.

Incentives like these show to what extent countries are willing to go to keep producers returning and why film-making is here to stay.

"In the digital age, production traveling is a given, and films will be made where they can best be served," said Iain Smith, producer of "Cold Mountain," a movie that was impugned by Hollywood filmmaker unions for being filmed entirely in Romania even though the subject matter was the U.S. Civil War.

4 Bulgarians Die in Crash in Romania

Hristo Yankov, Pavel Baev, Kalin Asenov, Zlatomir Mihaylov.

Four Bulgarian nationals died in a heavy car crash in Romania Thursday night, authorities reported.

The accident took place just after midnight on a road in southwest Romania near the village of Tatarasht.

Police say the Bulgarian driver attempted overtake and hit headlong with another car, causing the tragedy.

Names of Victims are: Hristo Yankov, Pavel Baev, Kalin Asenov, Zlatomir Mihaylov.


Doctors say the lives of the people traveling in the Romanian car are out of danger.

BIPAI's pediatric AIDS center in Romania grows up


HOUSTON -- (December 6, 2007) -- A center that opened in Romania in 2001 to help young children with HIV/AIDS survive for longer periods is now adapting to its success with an expanded focus of caring for the adult needs of these individuals.

This week, formal ceremonies were held to dedicate the Baylor International Pediatric AIDS Initiative's Romanian Clinical Center of Excellence. The center is a joint program of the Infectious Diseases Hospital Constanta, Baylor College of Medicine and Texas Children's Hospital.

"We are adapting to changing needs," said Dr. Mark Kline, president of BIPAI, professor of pediatrics at BCM and chief of the retrovirology clinic at Texas Children's. "We are dealing with issues today that we couldn't have imagined a decade ago. At the time, we were just concerned with keeping the children alive for another month, another year. And today, we find that the HIV care is a relatively minor part of what we are doing. We are much more involved with primary medical and psychosocial needs."


BIPAI opened the state-of-the-art Romanian-American Children's Center in 2001, with funding support from the Sisters of Charity of the Incarnate Word and Abbott Laboratories, to provide outpatient care to the hundreds of HIV-infected children in the area. At the time, the situation was grim, with children dying at a high rate.

As a result of the center, the mortality rate dropped from 15 percent in 2001 to 1 percent in 2006.

Now many of those children are in their late teens and early 20s, with different issues to face. Kline said the decision was made to transition the program, rather than transition the patients away from the center to an adult program.

"We're choosing to expand our own range of services to accommodate the entire age range from infancy to adulthood," Kline said. "We will continue to provide medical and psychosocial services to these individuals, but we're also going to tackle issues like housing and job training, education and subjects surrounding marriage and family."


The Center of Excellence will provide services under the same roof, including programs in infectious diseases, pulmonary diseases, gynecology and dental care; psychosocial and vocational counseling, social assistance, family planning and support groups; and education for healthy independent living.

The Center also will educate and train health professionals and develop a research department.

Sustaining funding for the Center of Excellence is provided by the Abbott Fund.

Kline was joined at the dedication ceremonies by BIPAI vice-presidents Nancy Calles, Michael Mizwa, David Jones and Sebastian Wanless; Ana Maria Schweitzer, executive director of BIPAI's Baylor-Black Sea Foundation; Dr. Sorin Rugina, manager of the Constanta Infectious Diseases Hospital; and Dr. Suzan Ibram, an official with the Public Health Authority of Constanta, as well as other government officials, members of the BIPAI team, BCM and Texas Children's representatives.

A special guest at the dedication was Dr. Gabriel Anabwani, executive director of the Botswana Baylor Children's Center of Excellence. The Romanian clinic served as a model for the Botswana clinic, which opened in 2002. BIPAI now operates seven centers of excellence in Africa, along with the Romanian center.

Kline and the BIPAI team also participated in the dedication of a new housing complex that includes the Flower House, a program that houses and teaches independent living skills to abandoned or orphaned HIV-infected adolescents, and the Baylor Habitat House, three studio apartments for those who are now independent adults.

The 8GB Sony Ericsson W960i Now in Romania


The long-awaited high-end UMTS handset, is finally available in Romania, as of today. W960i combines the qualities of an excellent phone with the ones of a high performance media player into one good-looking device that can satisfy any user’s communication and entertainment needs.

With its 8GB on-board memory, the W960i candybar proudly stands beside Apple’s iPhone and Nokia’s N81 and N95 models, providing the same huge storing capacity, enough for no less than 8,000 songs. The handset has a 2.6 inch color TFT Touchscreen, ideal for videos, games and web navigation (with the pre-installed Opera Mini browser). A 3.2 Megapixel camera with auto-focus is included to offer users good quality photos, comparable with the ones taken with some phones from Sony Ericsson’s Cyber-shot line. Morever, with the phone’s MMS and email capabilities, photos can be shared imediately with friends or family.

Sony Ericsson W960i is 3G and Wi-Fi enabled, thus providing excellent Internet capabilities. Being a music phone, W960i is equipped with a Walkman Touch player, FM radio and two headsets (one of them being the latest Bluetooth HBH-DS220). The handset can provide a total playing time of up to 27 hours.

“Market enthusiasm for the Walkman phone range has far outshone even our own expectations”, says Miles Flint, Sony Ericsson President. “With lifetime global sales standing at over 26.5 million Walkman phones and users really understanding the benefits of ‘music on your mobile’, the time is right to release the next album! This means Walkman phones that make it quicker and easier to transfer or download music, plus innovative ways of searching through all of those tracks. It’s also about thinking beyond music, to games, videos and the Web.”

Sony Ericsson W960i’s availability is great news for the Romanian mobile market, as it’s a phone that stands out and can compete with any other high-end multimedia handset. Its price is unknown yet, but it will be revealed pretty soon.

CEZ Romania announces massive layoffs at Electrica Oltenia

CEZ Romania, the local arm of the Czech energy group CEZ, owning in Romania the electricity distributor Electrica Oltenia since 2005, is to send home 300 employees next year with a view to restructure the company, president Jan Veskrna said today.

He said the company, whose workforce accounts for some 3,000 people, has way too many employees compared to other firms involved in similar businesses in the other EU countries and ruled out any economic motivation for these layoffs.

Veskrna said the other foreign companies operating in the power sector in Romania, namely Enel and E.ON., owners of former Electrica Moldova, and Electrica Banat Dobrogea respectively, are also considering trimming their workforce.

CEZ Romania voiced in late July this year its interest to get involved in the building process of reactors no. 3 and 4 in Romania’s sole nuclear plant in Cernavoda.

Networx expands into Romania


The Bulgarian alternative telco Networx is reported to have established a presence in neighbouring Romania. Basing itself in the city of Giurgiu, it will offer triple play services as in its home market. Networx was founded in 2000 and claims to be the largest provider in Northeast Bulgaria. It launched Networx-TV, an analogue TV solution employing FTTB technology, in September this year. It also introduced IPTV and web-TV services in the same month. According to the company, it invested over $2 million (€1.36 million) on its infrastructure in 2006.

Romania's booming IT sector

Romania looms as the next offshore tech powerhouse with its low costs, language proficiency, burgeoning infrastructure, and engineering skills

Could Romania be the next India for IT talent? Business-technology leaders in the former eastern European country hope so.

A delegation of business and technology executives from 26 Romanian companies recently exhibited at an outsourcing expo in New York to rally business from U.S. and international companies looking for offshore tech help.
Dozens of U.S. and other companies already are working with Romanian developers, including Microsoft, whose RAV AntiVirus software was developed by GeCAD Group, a coalition of five Romanian software and IT-services firms.

The average annual income for software developers in Romania is about $6,000, says Constin Lianu, general director for export promotion at the Romanian Ministry of Economy and Commerce, almost double the $3,300 average per-capita income. Software pros working for multinationals can bring in much higher paychecks. Developers working for Oracle earn the equivalent of $15,000 to $35,000 U.S., says Edund Fabian, senior development manager of Oracle’s European Development Center, which opened last year in Bucharest and employs about 300, including Fabian, who leads a development team of 10. Romania has about 45,000 software developers, and 8,000 graduates enter the field annually.

There are about 45,000 software developers in Romania and 8,000 graduates enter the field annually, Lianu says. The government is intent on expanding the ranks of IT pros, providing perks such as payroll tax exemptions. Romania is a relatively poor country, but that’s changing, Fabian says. Long plagued by political corruption, it’s cleaning up its act and is expected to join the European Union in 2007, he says. Even under Communist rule, Romanians were known for engineering skills, but in recent years many professionals left to work elsewhere. Fabian, who is 30, himself is one of the increasing number of IT pros returning. He spent seven years working in software development jobs in Ireland and The Netherlands.

Accessible Technology
To help nurture the growth of its technology industry, Romania is also developing its IT infrastructure, with broadband rollouts in rural areas and a multimillion-dollar program to subsidize the purchases of PCs for families.
Besides the cheaper labor costs, one of the biggest advantages Romania has is its multilingual workforce. Most Romanian IT professionals speak English, and many also speak French, German, Swedish, Finnish, Greek, Danish and other languages.

Disaster-recovery-software company Neverfail Group Ltd. was struck by workers’ language abilities when it chose to open a tech-support office in Cluj-Napoca, Romania, says Martin Procter, a product and services director at Neverfail. The center employs 18 IT pros who provide tech support for the company’s software. Neverfail, which also has a support center in Scotland, had investigated opening a support center in India, “which won on cost,” Procter says. However, in the end, Romanians’ strong “understanding of English” and other multilingual skills won over India’s lower costs. Procter says, “We were looking for clever young people” who had good tech skills but were not yet “programmed” or trained for a particular industry, business, or company.

Indo-Romanian trade to increase one billion dollars by 2008: Envoy

India and Romania have set a target of one billion dollars in bilateral trade in the next two years, said Romanian Ambassador Vasile Sofineti at a meeting with the economic delegation from Romania organized by the Confederation of Indian Industry (CII) here on Tuesday. Trade has witnessed a quantum growth to around 450 million dollars in 2005, an increase of 69 percent over the previous year. This should become possible by collaborating with incredible India, Sofineti added. Chairman and Managing Director, Inapex Ltd, V K Mathur said India- Romania trade, which stagnated during 1999- 2001, is again on the upswing. In 2004, trade between the two countries grew by an impressive 103 percent as compared to 2003. Some of the items with good potential are drugs and pharmaceuticals, iron ore, machinery and instruments, iron and steel and inorganic chemicals. "We have the capabilities and capacities to diversify our trade basket to include non-traditional niche products." Many Indian companies such as Ranbaxy, Viraj Group, Ashmita Constructions have set up businesses in Romania, he said. "Till now, about 20 Indian companies have registered in Romania." Mathur said there is no dearth of new avenues in which Romanian businesses can cooperate with their Indian counterparts for trade and investment in India. New areas where both the countries can work together for mutual benefit include new frontiers such as information technology, entertainment, biotechnology and bioinformatics. There are new opportunities for investment in India in sectors as diverse as tourism and infrastructure, petrochemicals and aviation, mining and oil exploration, he said. The special economic zones recently set up in several Indian states provide internationally competitive business environment. "The Romanian industry can seriously consider the opportunities to invest in these zones and benefit from the preferential policies of the Indian government." Counselor Asia Division, Ministry of Economy and Commerce, Romania, Mr. Dorin Refca said India is considered among the top four strategic partners in Asia. The relationship between the two countries has been further strengthened with the recent visit of Traian Basescu, President of Romania in October this year. "Quite a lot of events are lined up next year in order to enhance trade between the two countries," Dorin said. Vice President, UGIR 1903, Elena Laslu said that the organization looks forward to make an agreement with CII. "We have many associations for industrial sectors in Romania to help our Indian counterparts." The meeting was followed by business to business meetings between the 16 member Romanian business delegation and members of the Indian industry. (ANI)

Payzone expansion plans might include Romania, manager says

Irish electronic payment operator Payzone Plc, Europe’s largest branded consumer payments acceptance network, recently said it was mulling over opening a Romanian branch, Reuters announced quoting the company’s executive manager, John Nagle.

The company, providing services in 21 countries, implements and operates payment networks including prepaid mobile telephone top-up, credit and debit card processing, utility and general bill payment, money transfer and stored value solutions, processing more than 540 million transactions per year.

Payzone was created in September following the merger between the Irish company Alphyra and the British card operator Cardpoint. Its shares are listed on the London stock exchange.

Nagle voiced hope Payzone was to get among the top four electronic payment players in the next two years and said the company’s plans were to expand Cardpoint on the European market as the British one is saturated.

The company is poised to invest in Germany, Poland and Romania, he was quoted as saying.

Bulgaria and Romania Consider a Single Airspace Bloc



6 December | Those flying over, to and from Romania and Bulgaria may discover their flights have become faster, safer and more punctual in the near future. The two countries are considering the creation of a single functional bloc of airspace, which will facilitate air traffic over the two countries.
The possibility for the creation of such a space is currently being evaluated by a consultant company and the analysis results will be clear by the end of the year, the Bulgarian National Radio Reported.

A single airspace bloc, which would be called Danube in this case, means that neighbouring countries agree to control their respective airspace collectively in order to provide optimal routes, without a regard for state boundaries.

The Danube airspace bloc would be part of the Single European Sky initiative, which aims to increase the safety levels of air traffic management, to unite and harmonise European airspace and to decrease delays through an increased traffic capacity.

Ancient wood, ropes discovered in Romania


The Romanian archaeologists have discovered well-preserved wood and ropes of 3,000 years old at Beclean of Romania's northern Bistrita-Nasaud County, officials said on Wednesday.

The objects, found in the bed of a highly salted river near Baile Figa, have been well preserved due to the salted mud, said Valeriu Kavruk, curator of the Museum of the Eastern Carpathians based in Sfantu Gheorghe, central Romania.

The laboratory tests with Carbon 14 showed the objects dated from 1000 B.C., Kavruk said, adding that the Figa site represents "the most important archaeological discovery in the latest decades in South-Eastern Europe."

According to the curator, the importance of such a discovery resides not only in the fact that it is for the first time that wood and ropes made of ivy that old, very well preserved too, were found but also it is highly important such objects gave an idea about how salt was dug 3,000 years ago.

The specialists concluded that the salt blocks were cut not with hard tools as nowadays, but they were melted using water and then poured through the holes in the big block of salt.

MSL to buy Romania-based seamless plant

Maharashtra Seamless (MSL) - a flagship company of the Rs 3,000 crore turnover DP Jindal Group - announced that the parent company is acquiring Romania-based seamless plant with a capacity of 2,00,000 TPA.

The acquisition is expected to surge at further heights in view of increased prices of oil and also increasing demand for energy requirements. This would enable the group to capture the maximum demand potential going forward and would lead to substantial growth in the businesses of MSL.

The group is well diversified into manufacturing of Seamless Pipes, ERW Pipes, Wind Power Generation, Offshore Oil & Gas Drilling and projects exports. The group is also having a Joint Venture with Tenaris, the largest manufacturer of Seamless Pipes in the world and also having a marketing collaboration with Noble Drilling, US, the second largest drilling company of the world, for Indian operations.

Switzerland and Romania talk cooperation

Switzerland hopes to conclude negotiations on extending a labour deal to Romania within the next few months, says Swiss President Micheline Calmy-Rey. Speaking after meeting her Romanian counterpart Traian Basescu on Tuesday, Calmy-Rey said voters could have the final say on the agreement if the accord was contested. Romania, which joined the European Union at the beginning of the year alongside Bulgaria, is Switzerland's main trading partner in southeastern Europe. Non-EU member Switzerland has gradually opened its labour market under a bilateral accord with Brussels.

Ex foreign minister will head Romania's foreign intelligence service


The Romanian Parliament on Wednesday approved former Foreign Minister Mihai Razvan Ungureanu as head of the country's foreign intelligence service.

Ungureanu served was forced to resign as foreign minister in April after he failed to inform Prime Minister Calin Popescu Tariceanu that two Romanians had been arrested in Iraq by U.S. troops. His nomination as head of Romania's foreign intelligence service was made by President Traian Basescu, in November.

Ungureanu, 39, is a historian by training and known for a pro-American stance. In 2005 he signed a 10-year agreement with U.S. Secretary of State Condoleezza Rice to set up U.S. bases on Romanian soil.

Bulgaria, Romania, Slovenia Recommended for Ski Holidays



The eastern European destinations of Bulgaria, Slovenia and Romania have been recommended to British tourists looking for a bargain ski holiday.

Bulgaria's Borovets resort is the cheapest ski holiday destination, with prices for equipment and accommodation half of what travellers would find in Vail, Colorado, according to Post Office Travel Services.

Poiana Brasov in Romania and Kranjska Gora in Slovenia were also found to be "significantly cheaper" than well-known resorts in Switzerland, France and Austria.

Helen Warburton, head of travel services at Post Office, warned, however, that price is not the only thing people think about when planning a ski holiday.

"It's important for ski holidaymakers to pick a resort that suits their expertise and matches their expectations," she said.

"For those people and for bargain hunters, Bulgaria and Romania represent excellent value."

However, those wanting to travel further afield can always try Canada, where resorts such as Whistler regularly entice all types of winter sports lovers.

The news comes after the Association of British Travel Agents reported that France had overtaken Austria as the most popular skiing destination in Europe.