Coalition for Romania’s Development: Lack of legislative predictability, bureaucracy impact businesses

The labor force crisis and the lack of legislative predictability are among the issues impacting the business environment, the Coalition for Romania’s Development (CDR) explained. The CDR, which gathers representatives of 25 business associations, chambers of commerce and confederations, presented the Government with the priorities of the business environment in several key areas. “Despite the economic growth recorded last year, we are worried about the lack of its sustainability and about the macroeconomic data showing multiple weak points. These are already well-known themes, such as the precarious infrastructure, the poor educational system and a problematic medical system but also themes that have become acute in the recent period,” the CDR said. As such, the CDR pointed to the lack of labor force, missing in numbers and lacking the appropriate skills. This has happened because of the demographic evolution, migration, because of an educational system unadjusted to current needs, and the attitude towards work. The coalition also highlighted the lack of legislative predictability, transparency and real dialogue between the local and central decision makers and the business environment, which generates, on the long-term, economic policies that are not adjusted to the development rhythm of the private initiative. Another issue is the “suffocating bureaucracy” still standing because of public services that are not digitalized, especially those of the tax authority ANAF. The poor image Romania has abroad, in contrast with the country’s real potential, adds to the bigger picture. The unsustainable increase of salaries, although needed and wanted, especially in the public area, is another theme identified by the CDR. This attracted salary increases in the private area, without a productivity connection. The CDR offered its support in elaborating specific solutions to fight the fiscal evasion by abolishing black market labor. It said it was available to support the Government with the needed expertise and solutions to correct the vulnerabilities it signaled. Romanian companies may put investments on hold due to fiscal uncertainties editor@romania-insider.com