Year 3, Issue 2 CEE April 2016 Legal Matters In-Depth Analysis of the News and Newsmakers That Shape Europe’s Emerging Legal Markets Across the Wire: Deals and Cases in CEE The Energy Sector in CEE Market Spotlight: Austria and Hungary CEE Buzz Inside Insights On the Move: Big Changes in Estonia The Chatterbox Inside Out Creative Solutions in a Critical Cause: Women in Law Firms Anti-Corruption Sensitivities for Multi-National Players in Emerging Markets Hungarian Round Table Experts Review: Real Estate Untitled-2 1 2016. 04. 08. 12:31 Preliminary Matters CEE Legal Matters Editorial: Looking Past the In-Depth Analysis of the News and Newsmakers That Shape Europe's Emerging Legal Markets Static As I was reading the Poland, we spoke to a Managing Partner of an news from across international law firm who reported that despite CEE last Sunday, I concerns over how the new Polish Government came across head- might deter investments, it had yet to really do lines showing that so. In this issue’s Market Spotlight Round Table the far right was on the Hungarian legal market (page 62), par- doing well in the ticipants reported that, despite a Government current presidential perceived to be interventionist, utilization rates elections in Austria are at their highest since before the 2007/2008 – portending an- crash. In our regional energy report (page 42), other in a series of victories by right wing parties we showed how, in Greece, for instance, as a across the region in recent years. Out go the old, result of the bailout deal, positive reforms are in come the new. being implemented. And, as I also mention in our new section, The Chatterbox, when looking As a not-unrelated matter, at CEE Legal Matters at basic indicators such as 2016 GDP forecasts, we regularly speak to lawyers in countries such CEE countries are leading the pack among EU as Turkey, Hungary, and Poland, among others, member states. The Editors: who express concern about how right-swinging national politics in their countries – or at least But there’s another element to this as well. As David Stuckey the manner in which political developments in many of our readers know, I’m a Romanian na- [email protected] their countries are seen by outsiders – might neg- tional. As such, I can’t help but take some pride Radu Cotarcea atively influence investor appetites. in seeing Romania regularly identified as one [email protected] of the most bullish markets in CEE these days. But this is not something new for CEE. And I’ve What I find especially interesting is how much of found myself thinking of the several conversa- Letters to the Editors: the narrative put forward by the Romanian me- tions I’ve had with Partners in recent months dia suggests that the considerable improvement making a completely opposite point and describ- If you like what you read in these in the country’s economic performance result- ing political changes – or concerns about them pages (or even if you don’t) we ed from the country’s most recent presidential – merely as “static” or “noise.” Indeed, they’ve really do want to hear from you. elections. That may or may not be true, or en- been describing these developments in terms Please send any comments, crit- tirely true, but in any event it leads me to a fun- that could be paraphrased as: “Look, there’s a lot icisms, questions, or ideas to us damental consideration: If in CEE new leaders at: of coverage of potential political risks associated are hailed for bringing about structural change with the country, but the reality is that investors [email protected] in markets, and if we have markets where new are seeing past that static and are looking at the or prospective leaders are feared for the struc- indicators that really matter.” One such com- tural changes they might bring – while all these Disclaimer: ment can be found in this issue, in fact, on page countries seem to be growing at a considerably At CEE Legal Matters, we hate boil- 63. And the happy bottom line to that analysis healthier rate than in recent years – then we need erplate disclaimers in small print as is that, if we look beyond the noise, there seem much as you do. But we also recognize to be looking at more than merely the political to be plenty of opportunities drawing investors the importance of the “better safe than noise as responsible for the success or failure of sorry” principle. So, while we strive for into CEE. accuracy and hope to develop our read- the economies in these markets. ers’ trust, we nonetheless have to be ab- It might be a bit of a stretch to claim that the From our side, we’ll continue to do our best to solutely clear about one thing: Nothing the privatization-driven gold rush of the 1990s is in the CEE Legal Matters magazine or dig beyond the static. We look forward to your website is meant or should be under- making a return to the region. But if one looks support in that mission. stood as legal advice of any kind. Read- at CEE closely, some positivity and optimism ers should proceed at their own risk, and Radu Cotarcea any questions about legal assertions, are justified. In our last issue’s Buzz section for conclusions, or representations made in these pages should be directed to the person or persons who made them. Correction and Apology: After the February 2016 issue of the CEE Legal Matters magazine was printed and put in the mail to subscribers we discovered, to our horror, that in the formatting process we somehow mixed up sev- We believe CEE Legal Matters can serve as a useful conduit for legal ex- eral of the Experts Review articles, putting the wrong articles under the photos and bylines of authors in Austria perts, and we will continue to look for (Christian Hammerl, Partner at Wolf Theiss), Montenegro (Nikola Babic, Partner, and Jovan Barovic, Attorney, ways to exapnd that service. But now, Moravcevic Vojnovic i Partneri in cooperation with Schoenherr), and Bosnia & Herzegovina (Emina Saracevic, later, and for all time: We do not our- selves claim to know or understand the Partner, and Saida Porovic, Associate, SGL Saracevic & Gazibegovic Lawyers). As soon as we were alerted to this law as it is cited in these pages, nor do mistake, we fixed the errors on the version of the issue available on the CEE Legal Matters website, but it was we accept any responsibility for facts as of course too late to fix the printed copies that went out to subscribers. We offer those authors, and our readers, they may be asserted. our embarrassed apologies for the mix-up. CEE Legal Matters 3 Preliminary Matters Guest Editorial: Enormous Change in a Short Period of Time ers that meaningfully contributed to and like chump change when compared to the shaped the region’s legal landscape – lead- scale and sophistication of the M&A trans- ers such as Nick Eastwell, Duncan Weston, actions and financings that are regularly Rob Irving, David Shasha, David Butts, Neil conducted in the region. McGregor, Paul Stallebrass, Helen Rodwell, Alex Doughty, Andrew Kozlowski, Ian Bat- But that deal is indicative of how much has ty, and John Fitzpatrick. changed in a relatively short period of time. And thus began the start of a quiet – but Today the region boasts some incredibly significant – generational change in the pro- impressive legal and managerial talent: in- fessional legal services market in Central & dividuals who have been trained by mar- Eastern Europe. ket-leading international law firm, or who climbed the ladder within elite multination- Most who successfully practice law in the al companies and were part of this “new region today – whether in private practice generation” of lawyers. or as in-house counsel – are doing so at a level of sophistication that mirrors that of Most, if not all, of today’s leaders in top leading Western European financial centers. legal positions in CEE are products of Most were part of, or the offshoot of, this this historical generational change in the generational change: a unique moment in legal services landscape – innovators, and Twenty years ago I graduated from law the region’s history. first-timers – young professionals who were school in sunny California, passed my bar thrust into positions of great responsibility exam, got on a plane, and came to East- I very much remember the unsaid rule at early in their careers. ern Europe as a bright-eyed young lawyer. the time – a rule that would probably be Having returned to the USA and worked What I thought would be a six-month so- fraught with discrimination lawsuits to- with law firms that don’t feel attorneys have journ turned into over a decade of living day, but which was arguably sound advice hit their greatest strides until their mid 40’s in the region and considerably more time at the time: “never hire anyone over thirty or 50’s, I find the contrasts stark. In CEE working throughout it. years of age.” At that important transitional point, law firms did not want lawyers with we have a generation of lawyers who are The legal environment in Central & Eastern the bad habits of the old guard. And for the leaders in their respective markets/fields, Europe was incredibly different back then. first time in history, new law school gradu- are comparatively young, and have come ates from the region had an abundance of onto the scene only during the past one or At the time, there were only a handful of in- employment opportunities from a cadre of two decades.