Coronavirus in Romania: Foreign and local companies propose 100 measures the Govt. can implement to save the economy

The Concordia Employers' Confederation and the Foreign Investors Council, two of the biggest business organizations in Romania, have proposed to the Government a set of over 100 urgent measures that would help the business environment overcome this critical moment and protect the consumers from the indirect effects of the coronavirus epidemic.

“The authorities and the business environment must have a three-dimensional approach: maintaining the socio-economic balances and the fiscal-budgetary ones, concrete actions on the most affected and important sectors and creating a risk matrix, so that they are prioritized depending on how the situation evolves in the economy,” the two business organizations said in a press release.

They believe that state support measures are needed to prevent blockages or bankruptcies of otherwise healthy sectors or companies, and the state itself needs resources.

The most important proposals submitted to the Government include:

• "Postponing the payment term for CAS, CASS and CAM for a period of three months, with a 5% discount for companies that decide to pay it. It is by far the largest expense of companies, about 10 billion lei a month. The bonus is important because companies that have liquidity should be encouraged to transfer these amounts. Consideration may be given to delaying these payments as different sectors become affected. Postponing the payment of social contributions will allow affected sectors to lay off as few employees as possible.
• Fast loan schemes guaranteed by the state, to provide support to small and medium-sized companies for which deferral of payment of taxes is not enough. The Government may also consider temporarily transforming the Start-Up Nation program into a support scheme for SMEs.
• The government must quickly access the financing lines opened by the World Bank and the International Monetary Fund.
• Specific measures for both the retail and transport sectors to ensure the continuous supply of food and medicines to citizens.
• A special medical procedure is required in order to prevent drivers coming from affected areas from quarantine for 14 days. This phenomenon can quickly lead to the depletion of the number of drivers available at the level of carriers in Romania.
• The need for urgent (but temporary) labor code flexibility to facilitate work from home or from a distance.
• Extension or adaptation of state-guaranteed programs so that banks can provide working capital loans to clients who are usually financially stable but are temporarily affected by the implications of the emergence of the new coronavirus.