German companies in RO more upbeat but concerned about possible fiscal innovations

The German companies in Romania currently have a good financial situation and are optimistic about the evolution over the next 12 months. Still, rising commodity and energy prices, labour costs and lack of qualified staff are the biggest reasons for concern, according to a survey conducted by AHK Romania in October 2021.

The German investors' association also expressed concerns about the "current debate on tax changes" that "is not timely at all."

AHK required Romanian authorities to secure regulatory predictability, a prerequisite of a favourable business climate, and pursue the reforms on its agenda, with the view of making the best out of the funds expected from the European budget.

Not surprisingly, the survey carried out among the German companies in Romania reflected more optimism compared to last autumn. Most managers consider the company's situation to be "good": over 67%, compared to 35% in 2020.

Only 10% of those surveyed still believe that their activity will deteriorate in the next 12 months (2020: 25.5%). More than 42% expect an improvement (2020: 26.6%), and 47% see no change.

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