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| THE “TEN COMMANDS” OF THE BUSINESS ENVIRONMENT 07/07/2009 |
| (2009-07-07) |
| Last updated: 2009-07-08 15:23 EET |
“The Romanian economy is ailing, and needs investment transfusions,” leaders of trade union confederations warned Prime Minister Emil Boc on Monday. The diagnosis is substantiated by figures. According to a survey worked out by the National Council of Small and Medium-Sized Enterprises, this year only 23% of the companies have reported turnover levels comparable to those in 2008, and only 5% of them increased their turnover. Another 72% of the companies however were forced to downsize their operations, and close to 15 % are on the verge of bankruptcy.
And to make things worse, agriculture experts say that around 70% of the autumn crops will be affected by the bad weather. Employers' representatives criticised some of the Prime Minister's anti-crisis measures as either “impractical” or “too theoretical,” and urged him to make sure that “existing companies are kept alive.” They also presented the Government with a list of so-called “Ten Commands,” with measures that, once accepted by the government and unions, may lead to a pact for development and the creation of new jobs. The “ten commands” supposed to cure the ailing Romanian economy include the exemption from payment of taxes on re-invested profits, exemption from other taxes and charges for companies which create new jobs and hire unemployed people, the allotment of additional funds to the Ministry for Small and Medium-Sized Enterprises or continuing massive public investments in infrastructure.
At a declarative level, they have all been accepted by the Liberal-Democratic Prime Minister, who has plenty of economic and social policy solutions to choose from. Leaders of the Social Democratic Party, the Liberal-Democrats' partners in the ruling coalition, sent a new anti-crisis action plan to the Government in which they control key ministries, such as the Ministry for SMEs, Agriculture, or Labour. Quite in line to their left-wing platform, the Social Democrats request a cut down in the VAT on a number of basic products, eliminating the minimum tax on turnover, a one-third reduction of energy bills for both households and business operators that have been affected by the crisis. They also want the irrigation system reconstructed and the car renewal programme expanded to include tractors and farming equipment as well. The first responses were tale-telling. Boc made no comments, political analysts dismissed the package as an electoral programme designed for this autumn's presidential election, and economic analysts simply labelled it as infantile.
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