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This Article Was Originally Published in Issue 4.3 Of Year 4, Issue 3 CEE March 2017 Legal Matters In-Depth Analysis of the News and Newsmakers That Shape Europe’s Emerging Legal Markets Special Editorial: Calling the Better Angels Across the Wire: Deals and Cases in CEE On the Move: New Firms and Practices The Buzz in CEE Experts Review: Compliance A Closer Look: Reported CEE Deals in 2016 Market Spotlight: Serbia The Corner Office: Change of Practice The Belgrade Bar: Discord and Dissent The Fashion of the Day: Law Firm Networks and Alliances in the Former Yugoslavia Inside Out: The EBRD Issues RSD Floating Rate Bonds PRELIMINARY MATTERS MARCH 2017 CEE EDITORIAL: CALLING THE Legal Matters In-Depth Analysis of the News and Newsmakers That Shape Europe's Emerging Legal Markets BETTER ANGELS Special warning: planet. The dangers of this phenomenon are This is a personal real, and go far beyond the mere election of editorial, and not overmatched and unenlightened strongmen. particularly related to That wave could well generate major military lawyering in CEE. I conflict, and soon. Our friends in Ukraine hope our readers will might suggest that time has already come, in indulge this unusual fact, and Mikhail Gorbachev recently lamented exception to our nor- in Time magazine that “it looks as if the entire mal practice. world is preparing for war.” He’s right. As an American This is madness. living in Europe, I’ve received many requests Outrageously, infuriatingly, this retreat from for my thoughts about Donald Trump’s be- democratic principles and from the institutions coming President of the United States. In that have been so instrumental in creating an one sense, my explanation for that bewilder- unprecedented period of peace, progress, and ing achievement is simple: He encouraged and cooperation across the Western world flies di- then exploited fear for his own benefit. rectly in the face of reason and evidence. The Editors: However, Trump’s victory in America’s Elec- For despite the claims of Trump and his ilk, David Stuckey toral College is so significant – both in itself this is, empirically, an unprecedentedly safe era, [email protected] and as part of a larger, global story – that it leading modern statisticians to note that, in the requires expanded consideration. Radu Cotarcea words of Steven Pinker, “today we may be liv- [email protected] First, it’s important to acknowledge that ing in the most peaceful era in our species’ ex- Trump’s victory in fact came after similar elec- istence.” Even deaths by terrorism in the West Letters to the Editors: tion results across Europe. Most notorious, – the casus belli of this modern political hys- perhaps, was the BREXIT – the 2016 decision teria – are low compared to the relatively dan- If you like what you read in these by a majority of voting English to withdraw gerous 1960s and 70s. Look back to the years pages (or even if you don’t) we their country from the European Union. Sim- of the Red Brigades, ETA, the Baader Mein- really do want to hear from you. ilarly, though she has not yet herself won any hof group, the Weather Underground, and the Please send any comments, crit- significant election in France, Marine Le Pen’s IRA, and consider that popular sentiment did icisms, questions, or ideas to us party, the National Front, has been growing not retreat from hope during those times. at: in popularity in recent years (in December And yet voters around the world nonetheless [email protected] 2016 one poll found it the most popular party feel that the world is more dangerous now. among French citizens ages 18-34), and simi- Why? Part of the answer for that, I believe, in- Disclaimer: lar growth has been reported for nationalistic parties in the Netherlands, Germany, and else- volves the cynical creation and exploitation of At CEE Legal Matters, we hate boil- purported dangers by politicians who stand to erplate disclaimers in small print as where in Western Europe. much as you do. But we also recognize gain as a result. Indeed, authoritarian leaders the importance of the “better safe than That phenomenon is perhaps particularly no- have always claimed that their nations face a sorry” principle. So, while we strive for ticeable in CEE, where the return of author- significant economic and physical threat from accuracy and hope to develop our read- ers’ trust, we nonetheless have to be ab- itarian governments in recent years represents outsiders, either in the form of minority pop- solutely clear about one thing: Nothing nothing so much as an unfortunate – almost ulations or recent immigrants or refugees – es- in the CEE Legal Matters magazine or tragic – reversion to a familiar norm. Thus, pecially if they have darker skin and/or differ- website is meant or should be under- stood as legal advice of any kind. Read- the consolidation of power by Recep Tayyip ent religions (and if they have both, look out). ers should proceed at their own risk, and Erdogan in Turkey, Viktor Orban in Hungary, These craven politicians claim the need for any questions about legal assertions, Andrzej Duda in Poland, and most famously conclusions, or representations made expanded executive power and inevitably insist in these pages should be directed to the Vladimir Putin in Russia, all stir memories of on aggressive interpretations of constitutional person or persons who made them. recent strongmen. powers, cite unusual circumstances justifying We believe CEE Legal Matters can exemptions from constitutional limitations, So Donald Trump’s successful campaign for serve as a useful conduit for legal ex- or attempt to amend constitutions outright perts, and we will continue to look for president in the United States should not be in their favor. Inevitably, all – including, of ways to exapnd that service. But now, viewed in a vacuum, as if it happened in iso- later, and for all time: We do not our- course, Messrs. Putin, Trump, Erdogan, and lation from the rest of the world. Instead, his selves claim to know or understand the Orban – insist that their elections are critical to law as it is cited in these pages, nor do popularity, like that of the others, represents we accept any responsibility for facts as their countries’ safety. they may be asserted. the result of the wave of hysteria, paranoia, xenophobia, and fear sweeping across the Continue reading on page 6. CEE Legal Matters 3 MARCH 2017 PRELIMINARY MATTERS GUEST EDITORIAL: INTERNATIONAL VS. LOCal – IN DEFENSE OF LOCAL FIRMS By Martin Kriz, Partner, PRK Partners I keep hearing that local offices of international firms have been inees. However, local firms have dominating the CEE legal market. Journalists covering the market not only gained traction in the look at the corporate, finance, and litigation league tables for the nomination process – they win region, notice that international firms occupy more places than as well. By way of example, the would be typical in Western Europe, and report a story of global Czech Republic stands out for producing two lone independents brand domination. I am almost certainly biased, but I see things that hold their own – with successive award wins – against strong differently. global players. Ours is, I feel obliged to point out, one of them. I admit, in reviewing the current league tables in the lead- Of course, market observers can be forgiven for misinterpreting ing legal directories, we can see that global and region- the trend. When you look at the rankings for the entire CEE re- al firms are notably present across the higher tiers. But gion, only international firms are present. It makes sense – the the remarkable thing is not their continuing presence; international firms have the wider footprint with offices in multi- it’s the distinct rise of independent local players. The progression ple jurisdictions within the region. Local firms tend to be present is actually fairly easy to chart. in just one or a few. Thus, the regional league tables are naturally skewed in favor of the larger, international firms. The question is In the early 1990s, when the CEE markets opened, international whether this says anything about the market share of the interna- firms arrived on the wave of foreign direct investment and were tionals versus the locals. My answer is: not necessarily. well placed to meet the growing demand. Larger local practices were literally non-existent, and the international firms encoun- As a region, the CEE is not any more coherent in terms of his- tered no effective competition. This resulted in a slew of interna- tory, languages, or territory than any given region of Western Eu- tional players opening offices throughout the region. At the time rope. The reason why CEE regional league tables are produced is of state-owned sales and privatizations, the international firms on that a number of international firms have opted for a pan-CEE the ground prospered. As a result, few if any local law firms occu- strategy and there is a market for tracking their success. It should pied top spots in league tables. then be no surprise that the international firms pursuing a pan- CEE strategy excel in league tables tracking firms applying such Since then, the situation has been gradually changing. Many of a strategy. A woman standing before a mirror and asking who is the international firms have either exited the market or downsized the fairest in the land should not be that surprised to see herself. operations considerably. At the same time, top-tier domestic firms have been thriving, and most have outgrown the local offices of What the pan-CEE league tables fail to measure is the actual pro- the internationals.
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