They have nothing to envy to the Indians

Businessmen are lining up to find a free seat in the waiting room. More resigned to sit on the ground. To not to lose time to do nothing, most of these cravatés travellers head furiously on their laptop keyboard, installed balance on their knees. The airport is today much too small to accommodate passengers who converge in Timisoara. This city of 350,000 inhabitants, birthplace of the Romanian revolution, became a liberal hive. Not less than foreign firms 6.660 is installed. Alcatel was the first large group to seek adventure in 1991. Other multinationals, among which Continental, Siemens, Solomon, Solectron, Philips, Procter & Gamble, Coca-Cola, followed the movement. Thousands of SMEs have also been seduced. More than 2,200 Italian companies, including opened an antenna in the region. Daily flights connect not less than ten cities of the peninsula to Timisoara. Even the Mayor, Gheorghe Ciuhandu, is unable to specify the number of companies based in his constituency. Everything is so fast...

To understand the interests of investors, simply deploy a map. The Timisoara region lies within 500 kilometres of ten European capitals. The Serbian and Hungarian borders are all close. "The businessmen who came here were reassured to know that they could quickly leave the country in case of problems," recalls Radu Silaghi, Director of marketing of Artima, a local supermarket chain. And they quickly understood the profits, as exporters, they could draw such strategically located. "We more near Vienna and Bucharest," summarizes Peter Bayard, President and founder of Helvetica Profarm, a manufacturer of infusion solutions. "The Western Europe is only two days of truck, said Bernard Malet, a French who asked his suitcases in Romania in the aftermath of the revolution of 1989." Need an extra day to join the Romanian capital, explains François Vuillet, Director-General of ITU, a textile company that employs 60 employees in Timisoara. And crossing the Carpathians is often a problem in the winter snow.

A well trained population

The presence of a low-cost and skilled labour also attracted investors. A worker is today still pay 150 euros per month. An amount of minimal when you consider that most have received good training. "Our city is home to between 50,000 and 60,000 students, calculates its mayor. The graduates coming out of the Polytechnic and our University all speak several languages. "This is important. "In the computer science and electronics, Romanians are excellent, judge Gwen Hervo, a French to help foreign companies to locate in this country of 22 million people." They have nothing to envy to the Indians. "This feature surprised many entrepreneurs. "I have no problem to find highly qualified workers," said Peter Bayard. About 70 of my employees are pharmacists or physicians. And they are all Romanians. People receive a good basic education. I there didn't arrive here. "To make sure don't miss engineers, some multinationals have chosen to finance four laboratories of the Polytechnic University, and they have doubled the monthly salary of teachers, which can now reach 1,600 euros, thirteen times that of a Professor of physical education in high school. One-quarter of the budget of the University now is funding companies. This phenomenon has to stop the haemorrhage of young graduates to the United States and Western Europe.

German imprint

To attract foreign companies, the city has not spared its efforts. "When I was elected to the Town Hall, in 1996, the unemployment rate exceeded 10, and major State enterprises were bankrupt." Our future was uncertain, summarizes Gheorghe Ciuhandu. We then launched a comprehensive study. And, in May 2000, we published our priorities for the next ten years. The first was to create a one-stop shop for companies wishing to establish themselves here. We help many newcomers, including renting them for low amounts of land in industrial areas. "The tax exemption customs for equipment imported enrolling in a program of more than $ 1 million investment, the tax rate of 16 on profits and 10 on the dividends and the lack of apprenticeship tax and professional have also attracted investors. In addition, said Florian Mihalcea, a local journalist, "corruption is less important here than in the rest of the country." No major scandal even broke, and the foreign patterns do not complain of having to pay large kickbacks.

This peculiarity is explained. "Mentalities are different, summarizes François Vuillet.". People are more open and they work hard as Bucharest and Brasov. Also, this region has always been an ethnic crossroads.

"We are a hub between the Balkans and Central Europe," noted Mayor. At Timisoara, 15 ethnic groups and a dozen of different religions live together in peace for decades. The membership of this town for two centuries to the empire of Austria-Hungary also left traces. "Many people still speak German, and numerous employees were kept a very Germanic attitude," said Florian Mihalcea. An asset size for multinational corporations. "I know a German boss has dismantled its plant, located next to Bucharest, and has rebuilt it here," says Gwen Hervo. This mix has facilitated the life of the investors. "The recent arrival of many foreigners asked no problem with the premises", welcomed the Helvetica Profarm pattern. "People here feel closer to a German or an Italian as a Moldovan and a Romanian from the East of the country", said Florian Mihalcea. Daily life in this city of province is also much more pleasant than in Bucharest. "Timisoara is a very Western town, note Michelangelo Rosso, an Italian who left in 2002 to create a manufacturing company of food for livestock, Eurofuraje his native Piedmont. There are more restaurants and bars, and the largest mall in the country opened its doors in September.

These assets attract a growing number of foreign companies, who have invested nearly $ 600 million in this area since 1990. "At the beginning, most of the companies came to Timisoara to follow one of their clients, noted Mr Vuillet." Then, they have signed contracts that they could not land while remaining in their country of origin, due to the high costs. This is the case of 80 of our activity here. "The Director of the French Chamber of commerce, industry and agriculture in Romania even better summarizes the situation. "Instead of relocation, I prefer the term of location, says Daniela Apolozan." Because if French companies did not follow their clients, their German competitors do so in their place. "This logic does not seem to dispel the sense of malaise that feel of many traffic groups present in Romania. Thus the factory doors Solomon are closed to journalists from crossing. "French companies do not like to speak to the press", recognizes the Director of ITU.

The real estate boom

Such a success however began to cause problems. "It becomes more and more difficult to find employees," says Ms. Apolozan. The rate of unemployment in the city reached barely 3, is two times less than the official national level (6.5). Consequence: the workers wages are passed in eight years of 50 to 150 euros. The real estate market, also, he exploded. A studio in the city is now rents 100 euros per month. An exorbitant sum for a manoeuvre. To buy home, it's an unattainable dream for most of the employees. An apartment of 100 square metres today sells for 40,000 euros, against 15,000 euros at the beginning of the 1990s. The price of land, him also, flambé. "A square metre of land is worth between 100 and 150 euros, prevents Gwen Hervo. Ten years ago, it was 10 euros.

Overheating is beginning to worry some contractors. "Italian SMEs specialized in textile prepare to move in Ukraine and Moldova, where wages are lower," noted Radu Silaghi. "Some companies are already parties, adds Gwen Hervo. I know a Switzerland which is installed in Ukraine. "This threat does not seem to worry about Peter Bayard. "Companies come here only to take advantage of low wages have never created added value for the country, analysis pattern of Helvetica Profarm." Their departure was not a disaster.

For its part, the Mayor of the city seems determined to do everything to avoid that investors go seek fortune in other lands. "I would like to put in place an urban community copied on the French model, details Gheorghe Ciuhandu.". Because I have more public lands to provide businesses, while the neighbouring communes have available surfaces but not enough money to fund the arrival of the water and electricity in their constituency. We help each other. For the moment, the mayors of these villages are reluctant to join with me, because they are afraid of losing part of their independence. But we must move forward. There are still great opportunities for growth to be seized. "The entrance of the Romania in the European Union, scheduled for January 1, 2007, should give a new boost to the city. "Any remains to be done, warns Gwen Hervo." France, the situation is blocked. Here, we still have at least fifteen years before us.