AmCham: Romanian Govt. should focus on implementing the investment plan

The Romanian government’s most relevant economic performance indicator, in 2018, should be the implementation of the investment plan, in order to transfer the economic growth into wellbeing, modern infrastructure, performing administration and qualitative public services for all, according to AmCham Romania. According to AmCham, the government sacrificed public investments last year to keep the budget deficit under 3% of the GDP. “Observing the budgetary deficit target has affected the level of public investments. They have only amounted to 67.7% of the planned investments at the beginning of 2017. Compared to 2016, public investments have decreased by 9.6%, and their GDP share reached its lowest in 12 years,” according to AmCham. Moreover, the absorption of European funds and investments based on such financial resources have been significantly under the targets. According to the business organization, the implementation of the investment plan is a priority in the execution of the state budget in 2018. This can be supported by measures such as increasing the public investments, discarding the pro-cyclic policy, significantly increasing EU funds absorption, and a stable fiscal policy to encourage private investments. AmCham also considers that public investments should be prioritized based on their impact in the economy and that including them in multi-annual budgets would make them more transparent and predictable, increasing investors’ trust. editor@romania-insider.com