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The Buzz in Romania: Interview with Gabriel Zbarcea of Tuca Zbarcea & Asociatii

The Buzz in Romania: Interview with Gabriel Zbarcea of Tuca Zbarcea & Asociatii

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"Romania is in a good shape right now,” says Gabriel Zbarcea, Managing Partner at Tuca Zbarcea & Asociatii. "It’s one of the fastest growing countries in the region. Estimated real GDP growth in 2016 was five percent, according to the IMF, which is huge, and it's 4.2% in 2017. The unemployment rate was 5.9% last year, well below the EU average. And we’re a very good market for investors, because of relatively inexpensive labor and a relatively diversified industry.”

Business for law firms in Romania is growing, Zbarcea says, but it’s not exactly booming. “It depends on what you’re comparing it to,” he says. “It’s not better than it was in 2009 and 2012, but it’s definitely better than 2014 and 2015. It’s better and it’s increasing. A slow margin, but definitely increasing.” He considers. “The legal market, it’s like a pie. In the last four years it has become a smaller and colder pie. Smaller, because there are not so many projects anymore. And colder, because there are many players all competing with ridiculous fees in order to win a new client. But now, in terms of what’s going on in the market, in terms of real estate, for instance, and in agriculture, it’s very active, with several projects worth over EUR 100 million. Activity levels as regards the banking sector have also increased during these past few years, in terms of the sale of large portfolios of non-performing loans, the sale of certain branches of international banks operating here, and the restructuring of their operations locally. In addition, the GDPR is also creating work for lawyers, namely as regards helping companies comply with the new rules on data protection and privacy. So we’re busy. Maybe the fees are not as high as they were eight or nine years ago. Back then the fees were higher, in terms of the hourly rates, but in terms of turnover we’re doing better every year. And this year is showing even a minor plus over last year.

Zbarcea is asked whether it’s safe to say that lawyers are satisfied and enthusiastic. “People are content,” he says. “Lawyers are earning money. Maybe they were pessimistic four years ago, but now the market is growing. Everybody can see it. And there’s room for all kinds of law firms. In the past two years everyone’s been content.”

As a result of the ruling party’s majority in government, Zbarcea says, the political situation in the country is stable. “And in terms of legislation, we passed a new Civil Code, Criminal Code, and Criminal Procedure Code in 2016, which represented a dramatic change in the legislation, and an update of the old Napoleonic Codes from the 19th century.” He’s asked whether, with some time now allowing for perspective, those codes achieved their aims. “I’ll be very honest,” he says. “In terms of impact on the business environment they proved to be quite effective, but there still are issues to solve.” In addition, he says, “the new Tax Code went into force on January 1, 2016.” Ultimately, good or bad, Zbarcea says the key is allowing the system to adapt to and evolve around these new codes. 

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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