News von den Mitgliedern

The lawyer’s team from STOICA & ASOCIAȚII - Dragoș Bogdan (Managing Partner) and  Mihai Stănescu (Managing Associate) -, acting for a major global manufacturer of innovative medicines, won in a series of litigations the provisional ban on the sale of competing products by other major pharmaceutical companies, which violated the exclusive rights conferred by a patent.

The litigations concerned a very important medicine, having annual sales of over 4.5 billion euros. In the context of the termination of protection over the active substance of the drug in question, several generic drug companies tried to enter the Romanian market, ignoring the existence of a second-generation patent - which protected other characteristics of the drug than the active substance.

 Dragoș Bogdan: ”Our mission was particularly complex, involving overcoming two types of obstacles to convince the courts to issue the presidential injunctions: firstly, demonstrating the existing rights in the context of an extensive case-law at the European and even at the global level regarding the validity of the patent; secondly, demonstrating the infringement of the patent by generic medicines, despite some highly technical features in the patent claims and the limited evidentiary possibilities determined by the procedural framework.”

The success achieved by the STOICA & ASOCIAȚII’s team ensures that the manufacturer of the innovative medicine respects the monopoly resulting from the patent, an essential aspect in the pharmaceutical field, practically the only way to cover the high research and development expenses involved in discovering and launching a new medicine on the market.

Founded in 1995, STOICA & ASOCIAȚII has gained national and international recognition in the world of law and the business environment, through its entire activity of legal assistance and representation of a vast portfolio of clients. Currently, the lawyers from STOICA & ASOCIAȚII have proven that they are a strong team, based on the observance of its principles: Fidelitas, Integritas, Fortitudo. STOICA & ASOCIAȚII has acquired an excellent national and international reputation. Its professional achievements are recognized in the most important international legal guides: Chambers Europe, Legal 500, WTR 1000, IAM Patent 1000.

CMS is delighted to announce that it was named CEE M&A Legal Adviser of the Year 2024 at the Mergermarket European M&A Awards 2024 in a ceremony held in London on the 27th of November.

The Mergermarket European M&A awards celebrate excellence in the mergers and acquisitions landscape and recognise standout advisory achievements on complex deals.

Major deals include 4.3billion euro acquisition of Budapest Airport by Vinci and Corvinus and 1.3billion euro acquisition of Profi by Ahold Delhaize in Romania.

Horea Popescu, Managing Partner of the CMS Bucharest office and Head of Corporate CEE, comments: “This recognition reflects the outstanding deals we’ve delivered, the trust of our exceptional clients, and our unwavering commitment to the CEE region for over 30 years. Thank you to our clients and team for making this achievement possible!”

This is the latest in a series of prestigious awards for the firm in CEE, after it was named CEE Law Firm of the Year at the Chambers Europe Awards and won four Deal of the Year Awards at CEE Legal Matters.

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About CMS 
Founded in 1999, CMS is an integrated, multi-jurisdictional organisation of law firms that offers full-service legal and tax advice. With 85 offices in 48 countries across the world and more than 6,300 lawyers, CMS has long-standing expertise both in advising in its local jurisdictions and across borders. From major multinationals and mid-caps to enterprising start-ups, CMS provides the technical rigour, strategic excellence and long-term partnership to keep each client ahead in its chosen markets.

The CMS member firms provide a wide range of expertise across 19 practice areas and sectors, including Corporate / M&A, Energy & Climate Change, Funds, Life Sciences & Healthcare, TMC, Tax, Banking & Finance, Commercial, Antitrust, Competition & Trade, Dispute Resolution, Employment & Pensions, Intellectual Property and Real Estate.

For more information, please visit cms.law

Sauter Turning Process SRL, ist Teil der Sauter GmbH-Gruppe und ein renommierter Name in der mechanischen Präzisionsbearbeitung.

Von einem kleinen Familienbetrieb hat sich die Sauter-Gruppe, mit seiner über 80-jährigen Erfahrung der Sauter GmbH, zu einer europäischen Hausnummer in der Herstellung hochwertiger Metallkomponenten für Branchen wie Automobil, Maschinenbau, Elektrotechnik und weiteren entwickelt.

Die Sauter-Gruppe umfasst 2 Produktionsstandorte. Neben dem Werk in Aldingen/Süddeutschland gehört auch das 2015 gegründete rumänische Werk in Dej zu der Sauter-Familie.

Das Werk in Rumänien feiert im Jahr 2025 sein 10-jähriges Jubiläum und zählt heute, mit 130 motivierten Mitarbeitern, zu einem wichtigen Standbein in der Sauter-Gruppe sowie auch in der Zulieferindustrie der oben genannten Branchen.

Auf Grund seiner technischen Kompetenz und betrieblichen Effizienz spielt Sauter Turning Process SRL eine zentrale Rolle in der europäischen Lieferkette.

Die erhaltenen Auszeichnungen durch „Topul Firmelor Active“ sind mitunter Beleg für das erfolgreiche Handeln der jungen Firma in Rumänien.

With an average age of approximately 11 years, the Bucharest office stock ranks among the youngest across Europe and the CEE region. This provides a significant advantage for landlords in attracting and retaining tenants, as the city’s office spaces are less likely to face obsolescence in terms of technology, construction quality and sustainability standards over the next 5 - 6 years, according to data from the Cushman & Wakefield Echinox real estate consultancy company.

In total, over 170 million sq. m of office spaces are at risk of becoming obsolete in 2030 across 16 European markets, according to the Rethinking European Offices report, produced by Cushman & Wakefield.

This is equivalent to more than 6 times the total office stock in Central London. In volume terms, the majority of this ‘at risk’ stock is in Western European markets.

Close to 80% of stock is at risk of obsolescence in that particular region in markets such as Amsterdam, Barcelona, London, Madrid, Milan, Paris and Stockholm.

In contrast, the CEE markets - Bucharest, Budapest, Prague and Warsaw - have lower risks of obsolescence (averaging just 43%), thus reflecting that much of the built stock has been delivered over the last couple of decades. Since 2004, the office stock in Eastern European markets has more than doubled, while in Western Europe most markets have seen the stock grow by less than 20%.

Compared with the regional average, Bucharest’s office stock is even younger, with nearly half of the existing 3.41 million sq. m of office spaces being built during the last decade. This reduces the city’s equivalent obsolescence risk to just 35%, the lowest among the analyzed markets.

Madalina Cojocaru, Partner Office Agency at Cushman & Wakefield Echinox: “Occupiers are today focused on securing the best-in-class, grade A office spaces in central or semi-central areas, with access to a wide range of amenities and which meet the latest environmental and sustainability standards. This is important in terms of attracting employees and creating the best working environment. Across Europe, grade A leasing accounts for around 50% of the total take-up, up from 40% before the pandemic and from around 33% over a decade ago. In Bucharest, 83% of the YTD transaction volume occurred in grade A buildings, which account for 79% of the total stock in the city.”

The Bucharest office market has shown clear signs of stability during the first 9 months of the year, with the leasing activity reaching a total of 261,700 sq. m. While this represents a 25% decrease compared with the same period last year, the volume remains at a satisfactory level, reflecting resilience in tenant demand despite the existing market challenges.

This decrease was expected in a context where not a single building was delivered throughout 2024 and also when considering that 2023 was a record year for the Bucharest office market in terms of total take-up.

Across Western markets, the risk is not uniform. Munich (60%), Lisbon (64%), Dublin (64%) and Berlin (65%) are better positioned compared with other markets tracked, as an important part of the stock has been developed over the past two decades. In London, the analysis suggests that 76% of the existing offices may become obsolete by the turn of the decade. With regulations already in place, it should accelerate the pace of change, especially in an improving economic landscape.

Moreover, many landlords are actively upgrading or redeveloping buildings in order to meet these needs and the growing demands from occupiers. On the other hand, although higher rents are at odds with corporate cost control, the central locations of those buildings and the amenities they provide are critical factors for success which should translate in high levels of both talent attraction and retention.

In this context, we anticipate a growing divide between best-in-class, centrally located assets and those in peripheral locations, where the vacancy risk is often greater. Landlords need to understand their spaces and whether repositioning or repurposing is the best strategic approach.

Cushman & Wakefield Echinox is a leading real estate company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, with a team of over 80 professionals and collaborators offering a full range of services to investors, developers, owners and tenants. For additional information, visit www.cwechinox.com.

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. For additional information, visit www.cushmanwakefield.com.

Technological developments in recent decades, including artificial intelligence, and changing business models have called for an adaptation of legislation on general product safety and liability for defective products. More about the objectives and innovations brought by EU Regulation no. 988/2023 on general product safety, in a recent article written by Daniel - Alexandru Aragea – Partner, STOICA & ASOCIAȚII.

Bucharest, 10 December 2024 – Banca Comercială Română (BCR), one of the most important financial groups in Romania, has provided a EUR 29.5 million credit facility to UNIRII VIEW S.R.L., with legal guidance from Wolf Theiss. This loan will be used by the developer to refinance an existing loan for the Unirii View building, located in the heart of Bucharest.

The transaction was handled by the Wolf Theiss Banking & Finance team in Romania, led by Partner Claudia Chiper. The team included Senior Associates Alexandru Asaftei, Iuliana Stoicescu and Smaranda Văcaru, alongside Associates Cătălin Sabău and Ana Florea. On the real estate aspects, Partner Roxana Roman and Counsel Dana Toma from the Wolf Theiss Real Estate team provided advice to the lender.

"We greatly appreciate the ongoing trust that our long-term client BCR, one of the leading banks in Romania, has placed in us by awarding another significant real estate loan. This transaction highlights our dedication to facilitating financing deals and strengthening the framework for such loans in Romania." – Partner Claudia Chiper.

About Wolf Theiss

Founded in 1957, Wolf Theiss is one of the leading law firms in Central, Eastern and South-Eastern Europe (CEE/SEE). We have built our reputation on unrivalled local knowledge which is supported by strong international capabilities. With 390 lawyers in 13 countries, over 80% of the firm's work involves cross-border representation of international clients.

Albania, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine, Wolf Theiss represents local and international industrial, trade and service companies, as well as banks and insurance companies. Combining law and business, Wolf Theiss develops comprehensive and constructive solutions on the basis of legal, fiscal and business know-how.

About BCR

Banca Comercială Română (BCR), a member of Erste Group, is one of the most significant financial groups in Romania, including universal banking operations (retail, corporate & investment banking, treasury, and capital markets), as well as specialized companies in the leasing and private pension markets.

BCR offers a full range of financial products and services through a network of 20 business centers, 18 mobile offices dedicated to companies, and 317 retail units located in most of the country’s cities with more than 10,000 residents, where 71% of our units are cashless. BCR customers have the largest national network of ATMs and multifunctional machines— almost 2,000 machines, and full banking services through Internet banking, Mobile banking, Phone banking, and E-commerce. For more information about BCR's products and services, visit www.bcr.ro.

Holiday spending will increase by 8% this year, compared to 2023, as 70% of consumers anticipate higher prices, but also because they are rather cautious in terms of expectations regarding next year’s economy improvement (only 43% are optimistic), according to the Deloitte 2024 Holiday Retail Survey. Amid higher prices expectations, buyers remain wary, and many intend to cut back on gifts for themselves (the share of those who plan such expenses decreased by 16 percentage points this year, to 32%) or to switch to lower-priced brands (62%), more affordable retailers (48%) or to private labels (40%). In addition, more people plan to shop during promotional events (75% versus 61% in 2023).

However, the participants in the study choose retailers based on product quality (39%), price level (37%) and variety of products (35%). At the same time, consumers are prioritizing experiences (up 16 percentage points compared to 2023), like events, holiday activities and socializing with loved ones (including hosting parties at home - 25%), while gift spending is expected to decrease slightly (by 3 percentage points compared to the previous year), and decorations continue to gain in importance (up 9% compared to the previous year).

In terms of gifts, clothing and accessories lead buyers' preferences (although the allocated amount is down 10 percentage points), while gift cards decline (minus 12 percentage points compared to previous year), and four out of ten intend to offer experiential gifts.

"Increasing prices also worry Romanian consumers, as annual inflation remains high in our country, around 5%, compared to the European Union average of 2.3%, according to the latest Eurostat data. And official forecasts indicate that inflation will remain above the National Bank of Romania target for a longer period. Buyers' caution has a negative impact on consumption, a sector with a significant contribution to the economic growth in Romania. Under these conditions, in which consumers value lower prices over brand loyalty, retailers need to consider shoring up loyalty programs to attract and retain customers in their portfolio, but also to invest in omnichannel experiences (integrating multiple interaction channels, physical and virtual), so that customers benefit from great deals and convenience while shopping," said Raluca Baldea, Tax Partner, Deloitte Romania, and the leader of the retail and consumer goods industry.

More than 70% of consumers prefer online retailers because it helps them save time (74%) and money (60%), get product variety (68%) and availability (64%). On the other hand, in-store retailers (preferred by 55% of respondents), are appreciated for the opportunity to check product quality (63%), responsive customer service (62%) and enjoyment (52%).

Retail executives expect sales to increase this holiday season (80% of them), aided by anticipated traffic growth in both in-store and online channels. On the other hand, 76% of executives believe most consumers will value lower prices over brand loyalty.

The Deloitte 2024 Holiday Retail Survey was conducted among over 4,100 US consumers and 45 executives from retail companies, among which more than 90% have annual revenues of more than one billion dollars.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. The firm’s professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Its objective is to make an impact that matters through its approximately 460,000 people worldwide.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 3,200 professionals.

Please see www.deloitte.com/ro/about to learn more about the global network of member firms.

© 2024. For information, contact Deloitte Romania

• Global mobility functions are increasingly seen as strategic partners, with 89 percent anticipating their program will remain or become more strategic in the next 12-18 months.
• Seventy-two percent of respondents prioritize aligning mobility strategies with broader business objectives.
• Seventy percent consider talent development, attraction and retention a top priority
• Sixty-seven percent of organizations that support international remote work have a formal policy in place.
• Fifty-one percent are looking to leverage AI in the short- and long-term, with 73 percent planning future AI investments to help with automation of administrative tasks.
• Seventy-six percent use technology for managing international assignments.

KPMG’s 2024 Global Mobility Benchmarking Survey: “Charting the future – strategic mobility for tomorrow’s workforce” points to the challenging commercial and geopolitical landscape as a key driver prompting global organizations to reassess their strategies. In response to new legislation and regulatory changes creating fundamental shifts in the compliance landscape, new business needs and additional demands are now placed on global mobility teams who play an integral role at the intersection of these diverse challenges.

The global survey collates the views of 225 global mobility professionals across multinational organizations spanning 29 countries and territories and 12 industries and provides valuable data on the evolution of global mobility programs with the expectations on their teams extending to include tax and immigration policies, structure, governance, priorities, performance measures, technology, robotics, automation, international remote working and more. The report outlines key actions that global mobility programs should employ to unlock their full potential and seize the emerging opportunities presented by new business demands with teams encouraged to be adaptable.

“Global mobility teams typically enhance compliance and manage risk under intense scrutiny,” said Marc Burrows, Global Head of Global Mobility Services, KPMG International. “However, the current landscape demands even more, often with less resources than were previously available. That requires innovative solutions, necessitating strategic alignment with business objectives and a fundamental adaptivity to thrive.”

Increasingly viewed as a strategic partner and trusted advisor, the report shares how almost three-quarters of respondents view alignment with the overarching business strategy as a top priority. In addition, the recent KPMG 2024 CEO Outlook shared that 92 percent of CEOs are planning to increase their workforce and 80 percent emphasizing skills development, hence alignment with talent strategies is considered crucial for global mobility with 70 percent of respondents listing talent development, attraction and retention as a top priority.

With the shift toward cross-border moves gaining momentum, the complexities of a globalized workforce are ever-present. The report reveals that 67 percent of organizations that support international remote work have a formal policy in place — a proactive approach that helps structure and formalize remote work capabilities, helping ensure compliance with tax and immigration laws.

The number of global mobility functions leaning into technology to drive operational efficiency continues to rise, with assignment management solutions widely used. Nearly two-thirds of organizations rely on a centralized or regional model for global mobility management, as these models are considered to help enhance consistency, control and responsiveness to regional dynamics and needs.

Seventy-six percent of respondents report using workflow and data management tools, and AI adoption is expected to rise, with 51 percent planning to integrate AI into their programs and long-term 73 percent planning future AI investments to help with the automation of administrative tasks.

The report encourages global mobility teams to compare the strategies employed with those of their global competitors to assess the real value of current operations and develop new future-focused initiatives, programs and policies.

“To stay ahead, organizations should regularly monitor and review mobility policies to help ensure they remain effective, competitive and aligned with business needs,” said Katherine Avery, Principal, KPMG in the US. “Collaboration and comparison are essential. Collaborate with suppliers – understand the challenges and learn from competitors to help ensure your team is suitably equipped to meet the ever-changing demands of the future.”

As Mădălina Racovițan, Partner and Head of People Services at KPMG in Romania comments: “In the last few years, employees have increasingly expected to be able to work remotely, at least for part of the time, including sometimes from another country. Employers too have seen many benefits in a more mobile workforce, both from the point of view of flexibility and also to widen the talent pool for recruitment. Nevertheless, international remote working can have significant tax, social security and immigration implications, not only for the employees concerned but also for their companies. Consequently, an expert assessment by qualified professionals is essential so that businesses can develop a strategy to take full advantage of the opportunities presented by international remote working, while also remaining compliant with tax and other legal requirements.”

About KPMG

KPMG is a global organization of independent professional services firms that provide audit, tax and advisory services. We operate in 143 countries and had nearly 273,000 employees in member firms around the world at the end of the financial year 2022. Each KPMG firm is legally a separate and distinct entity and is described as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its entities do not provide customer services.

In Romania and the Republic of Moldova, KPMG operates in six offices in Bucharest, Cluj-Napoca, Constanța, Iași, Timișoara and Chișinău. We currently have more than 1,000 professionals, both Romanians and expatriates.

Global law firm Dentons has advised Kommunalkredit Austria AG on a €28 million financing to Econergy UK for its Iancu Jianu solar project in Romania.

The project currently under construction in Olt county has an installed capacity of approximately 58 MW, and is expected to become operational during 2025.

Kommunalkredit Austria AG is a leading financial institution specializing in infrastructure and renewable energy projects and is recognized for its commitment to facilitating sustainable investments and supporting the transition to a low-carbon economy.

Banking and Finance partner Simona Marin led the legal team, assisted by counsel Maria Tomescu, senior associate Lawrence Florescu, associates Alin Serea and Carmen Banica (all Banking and Finance), partner Claudiu Munteanu-Jipescu, counsel Elena Vlasceanu and senior associate Angelica Pintilie (all Energy), partner Bogdan Papandopol, senior associate Isabela Gheorghe, associates Diana Ceparu and Geanina Anghel (all Real Estate).

Simona Marin commented: "We are happy to continue our longstanding partnership with Kommunalkredit by supporting another financing in Romania, a landmark project for the Romanian renewables industry and the overall economy."
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ENDS
About Dentons
Across over 80 countries, Dentons helps you grow, protect, operate and finance your organization by providing uniquely global and deeply local legal solutions. Polycentric, purpose-driven and committed to inclusion, diversity, equity and sustainability, we focus on what matters most to you. www.dentons.com

For further information, please contact:
Cristina Cazan 
Head of Marketing & Business Development, Dentons Romania
cristina.cazan@dentons.com
 

Investors are optimistic when it comes to their Romanian portfolios over the next 12 months, a clear improvement compared with the previous year. According to the 3^rd edition of the Cushman & Wakefield Echinox “Real Estate Investors Sentiment Barometer” conducted among the main real estate investors and developers in Romania, 64% of respondents forecast an increase in portfolio values, 30% expect stagnation, while only 6% anticipate a decline.

Cushman & Wakefield Echinox surveyed the top management of local, regional and global investors and developers, with a combined Romanian real estate portfolio valued at more than €15 billion, thus having a share of approximately 50% of the local modern real estate market.

Bucharest and the secondary markets consolidated their positions as the preferred investment destinations. Almost 80% (compared with 66% in 2023 and 63% in 2022) of respondents indicate Bucharest as their main location for new investments, while 31% (24% in 2023 and 20% in 2022) are actively targeting tertiary locations (cities with less than 200,000 inhabitants). Secondary cities are also a very attractive investment destination for more than 65% of respondents.

This development underlines how the investment portfolios have been diversified across the country and the increased interest in emerging markets outside Bucharest. The attractiveness of these areas is supported by growth opportunities, lower costs and positive market dynamics.

Vlad Saftoiu, Head of Research Cushman & Wakefield Echinox: ”Investors are optimistic, while also showing a certain degree of caution in regards to the Romanian real estate market evolution. They are predicting a consolidation of the industrial & logistics and retail segments, a stabilization of office demand and selective portfolio growth. The overall real estate market performance illustrates a balance between opportunities and macroeconomic challenges, in a context of increased confidence towards economic stability and consumption growth, supported by the accessibility of bank financing, the focus on sustainability and the adoption of ESG requirements.”

A majority of respondents predict an upward movement of office rents. While there were a series of concerns about potential decreases in 2023, the sentiment shifted back to optimism in 2024, suggesting a belief in a long-term upward movement of office rents. However, the 2024 growth predictions were slightly tempered for industrial & logistics assets, with an increased share of respondents forecasting stability rather than continuous growth.

The results indicate a positive, but cautious outlook for retail rental rates. While many expect increases, a consistent number of investors anticipate stability, the outlook improving each year, with fewer respondents predicting declines. This trend suggests growing confidence in the retail market, possibly fueled by the recovery of demand and by the impressive retail sales growth.

Inflation remains the primary factor which could influence occupancy costs in the real estate market. Construction and financing costs are also highlighted as major risks for rents across all segments.

In terms of demand, investors and real estate developers forecast a stable level for offices, with the sector moving towards consolidation, as companies are adapting to current work models rather than pursuing aggressive expansion. However, investors are more optimistic concerning the demand for retail spaces compared with previous surveys, even though there is no clear anticipation for significant changes.

Respondents are optimistic about the logistics sector and, to a lesser extent, retail when it comes to the asset classes expected to see more investments in the coming 12 months. The sentiment towards office spaces remains cautious, while also showing slight improvement compared with the previous editions of the barometer.

In this context, a clear majority of investors intend to expand their portfolios over the next three years, while 21% plan to maintain their current activity level and only 9% foresee downsizing. The primary source of financing is represented by banks, with 49% of respondents highlighting the accessibility of credit conditions. Another important financing source is represented by shareholder loans (19%).

The main negative factors concerning the real estate market are related to inflation and interest rates, while geopolitics and financial stability were also highlighted as significant risks. However, the investors’ perceptions of macroeconomic stability, taxation and labor market have improved compared with previous years.

Sustainability is becoming a key element in investment decisions, which is perceived as a way to ensure long-term success. Investors are clearly focusing on certifying their buildings and on getting up-to-date with the EU ESG Taxonomy reporting requirements.

The optimal management of operating costs is the primary challenge for 39% of respondents, while 24% identify the complexity of legislative regulations as a major issue for the management of their real estate portfolios. Factors expected to significantly influence property management include tenant experience and behavior, as well as the adoption of innovative and data-driven solutions.

Cushman & Wakefield Echinox is a leading real estate company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, with a team of over 80 professionals and collaborators offering a full range of services to investors, developers, owners and tenants. For additional information, visit www.cwechinox.com.

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. For additional information, visit www.cushmanwakefield.com.

• By 2030, Gen Z will be a key driver of the AI future, comprising 30% of global workforce
• Most of Gen Z uses AI but scores low in critical evaluation and assessment of AI
• Social media dominates as primary Gen Z AI information source

Businesses and academia risk assuming that Gen Z students and employees are “AI natives” and must be mindful of Gen Z over-confidence in relation to artificial intelligence (AI) literacy. That is according to a new EY report developed with support from Microsoft and TeachAI, How can we upskill Gen Z as fast as we train AI?, which uses quiz-style questions to provide insight into the AI aptitude of more than 5,000 Gen Z respondents across 16 countries. The report also reveals that while Gen Z understands which products and tasks benefit from AI, their ability to critically assess the technology falls short.

In terms of AI adoption, the survey finds that the majority of Gen Z are using AI (61% are “varied” users, verses 15% “super” users and 24% “stragglers”[1]). When it comes to aptitude, Gen Z respondents score best on questions about understanding how AI works, such as selecting which tasks and products commonly use AI (69% out of 100). But they are less confident in relation to questions that cover how to write the best prompts for AI (56% out of 100), and they score most poorly on critically assessing and identifying shortfalls, such as whether AI systems can invent facts (44% out of 100). 

More reassuringly, scores show that respondents recognize the importance of hard and soft skills required for AI, ranking creativity and curiosity as the most important skills needed to use AI well (52%), followed by critical thinking (47%) and then coding / computer programming (46%). This lays the foundation for Gen Z’s perception of AI’s benefits and risks. Respondents view the greatest benefits of AI to be time saving on repetitive tasks, analyzing large amounts of data and reducing human error, and they view the greatest risks as increasing unemployment, reducing human learning and creativity, and generating false information.

While many Gen Z use AI as a tool to help them learn, there is a disconnect between how AI is perceived in workforce and education settings. Forty-two percent of respondents believe their educators would discourage AI use to complete certain tasks, with just 15% saying the same of their employer. This could be linked to how technology can sometimes be seen as enabling plagiarism in schools, leaving educators to balance the need to prepare students for the workforce with ensuring they’re not overly reliant on new technology.

The results indicate that educators and businesses are playing catch-up to the rapidly evolving technology of AI. But they also chart a path forward to identify ways for businesses to help close that literacy gap in AI education and engagement among a Gen Z group who lean toward an optimistic view of AI but may be over-confident in their ability to evaluate the technology for optimal use.

Reflecting the wider scale of transformation that business and society face in not only harnessing the power of AI but also addressing its implications for people and the planet, the report shows that organizations need to prepare Gen Z with the right skills to understand, use and evaluate AI to innovate and evolve responsibly. The report shares key recommendation for employers and educators to achieve this, including:

• Mobilizing trustworthy information about AI on social media: The report found that 55% of Gen Z respondents ranked social media as their most prevalent source for AI information. Organizations and educators can leverage Gen Z’s attention to social media for good, by creating and amplifying trusted, vetted content about AI, on the platforms this generation is already invested in and spending their time on.
• Strengthening AI education to build better literacy through public and private collaboration: The report finds that Gen Z is somewhat satisfied with the guidance and preparation for AI from their employer or educational institution, with the first choice for desired types of support being courses or training from AI providers (37%) and resources that support self-guided learning about what AI is and how it works (35%) and how to use it (34%).

Horațiu Cocheci, Director, People Advisory Services, EY Romania: ”Looking at this context through a local lens, the data from the local study conducted this year by us - EY Upskilling Survey Romania - reveals that 81% of respondents believe that state bodies and the government should actively support and fund national upskilling initiatives, while 72% of respondents consider that this responsibility primarily belongs to companies. Furthermore, 85% suggest that the government should provide subsidies or tax incentives to companies that invest in reskilling programs, thus encouraging more companies to enhance the professional development and adaptability of their employees. Considering the particular context of our country in the last month, it becomes evident that such initiatives would automatically qualify as high-impact national projects."

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About EY Romania

EY is one of the world's leading professional services firms with 392,995 employees in more than 700 offices across 150 countries, and revenues of approx. US$51.2b in the financial year that ended on 30 June 2024. Our network is the most integrated worldwide, and its resources help us provide our clients with services allowing them to take advantage of opportunities anywhere in the world.

With a presence in Romania ever since 1992, EY provides, through its more than 1000 employees in Romania and the Republic of Moldova, integrated services in assurance, tax, strategy and transactions, and consulting to clients ranging from multinationals to local companies.

Our offices are based in Bucharest, Cluj-Napoca, Timisoara, Iasi and Chisinau. In 2014, EY Romania joined the only global competition dedicated to entrepreneurship, EY Entrepreneur Of The Year. The winner of the national award represents Romania at the world final taking place every year in June, at Monte Carlo. The title of World Entrepreneur Of The Year is awarded in the world final. For more information, please visit: www.ey.com

About the report

Methodology

The survey used quiz-style questions to provide a truer test of Gen Z’s literacy in various aspects of AI. It includes a combined sample size of more than 5,000 global Gen Z respondents, across 16 countries.

Definition Key

Gen Z: Generation Z (Gen Z) is generally defined as: (age 17–27).

EY Romania is privileged to advise Kingfisher, an international home improvement company with over 2,000 stores and 78,000 employees, on the agreed sale of Brico Dépôt Romania to Altex, market leader of the Romanian electro-IT retail sector.

During the EY-led process, the team provided full sell-side M&A assistance, structuring and coordinating the execution of the transaction.

Brico Dépôt Romania has the 2^nd largest store network on the Romania DIY retail market, having entered the country in 2013 via its acquisition of Bricostore Romania and further expanding in 2017 through its acquisition of local Praktiker operations. Brico Dépôt’s stores are designed to maximise customer shopping experience and address all DIY, DIFM and trade needs under one roof. The network is supported by a strong omnichannel proposition​ and an agile centralized headquarters.

Founded in 1992, Altex is Romania's market leader in electro IT retail and one of the largest and most recognisable Romanian brands. It currently operates 135 stores under two brands (Altex and Media Galaxy) in around 70 cities, covering all of Romania’s 42 counties.

EY’s multi-jurisdictional team provided end-to-end M&A advisory with an integrated service offering covering the full spectrum of sell-side assistance services, including vendor financial and tax due diligence, as well as SPA advisory and operational separation services. The successful execution of the announced transaction is owed to EY’s multi-disciplinary approach and globally integrated network.

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About EY Romania

EY is one of the world's leading professional services firms with 392,995 employees in more than 700 offices across 150 countries, and revenues of approx. US$51.2b in the financial year that ended on 30 June 2024. Our network is the most integrated worldwide, and its resources help us provide our clients with services allowing them to take advantage of opportunities anywhere in the world.

With a presence in Romania ever since 1992, EY provides, through its more than 1000 employees in Romania and the Republic of Moldova, integrated services in assurance, tax, strategy and transactions, and consulting to clients ranging from multinationals to local companies.

Our offices are based in Bucharest, Cluj-Napoca, Timisoara, Iasi and Chisinau. In 2014, EY Romania joined the only global competition dedicated to entrepreneurship, EY Entrepreneur Of The Year. The winner of the national award represents Romania at the world final taking place every year in June, at Monte Carlo. The title of World Entrepreneur Of The Year is awarded in the world final. For more information, please visit: www.ey.com

Deloitte Romania assisted AQUILA, one of the leaders in the integrated distribution and logistics services for the fast-moving consumer goods market in Romania and the Republic of Moldova, in its expansion on the Hungarian market through the acquisition of KITAX, one of the top five distribution companies in its field. The agreement was signed in December 2024, for a value of no more than 14 million euros, and is subject to approval from the Hungarian authorities and Aquila General Shareholders Meeting.

The Deloitte multidisciplinary team made of financial and tax consultants from Romania and Hungary assisted AQUILA during the financial and fiscal due diligence stages. The Romanian team consisted of Radu Dumitrescu, Partner-in-Charge, Vlad Balan, Director, Sorin Rugina, Manager, Catalina Nechita, Senior Associate, Vlad Muresan and Daniel Mircia, Associates, from the Financial Advisory department. The Hungarian team was made of Gabor Koka, Partner, Mario Bella, Senior Manager, Barbara Angyal, Senior Consultant, and Martin Kovacs, Consultant, from the Tax department.

“Our long-term successful collaboration with AQUILA continues with a new acquisition, which is relevant for the group’s growth story, as it marks the entry of this Romanian entrepreneurial business on a second external market, after the success obtained in the Republic of Moldova. It is a new step in their ambitious regional expansion strategy,” said Radu Dumitrescu, Financial Advisory Partner-in-Charge, Deloitte Romania.

AQUILA was established in 1994 as a family business and has consistently expanded over the past 30 years, both organically and through acquisitions, such as the takeover of AGRIROM, in 2019, of Romtec Europa, Parmafood Group Distribution and of Parmafood Trading, in 2024. The group is also active in the Republic of Moldova since 2001, through Trigor AVD. AQUILA Group has partnerships with international giants such as Unilever, Ferrero, Mars, Lavazza, Iffco, Philips, and its products are distributed through over 70,000 sales points across the country, located in major retail chains and gas stations. According to the latest financial results, AQUILA ended the first nine months of 2024 with revenues of nearly 2.1 billion lei, supported by the organic growth in the distribution segment and by the contribution of the three companies acquired in 2024 that operate on the Romanian market.

Founded in 2002, KITAX is a distributor of professional hygiene and cleaning products, consumables for the HoReCa sector, as well as health and safety equipment. The company reported revenues of circa 10 million euros at the end of 2023.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. The firm’s professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Its objective is to make an impact that matters through its approximately 460,000 people worldwide.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 3,200 professionals.

Please see www.deloitte.com/ro/about to learn more about the global network of member firms.