Investors invite Romanian Govt. to reconsider controversial emergency ordinance

The Coalition for Romania's Development (CDR) called on the authorities to reconsider the ordinance 114/2018, which sets new taxes, and measures that negatively impact some of the most important business sectors in the local economy. CDR claims the ordinance “brutally changes rules in sectors that support the modernization of the economy and the quality of life of the population”. The CDR asked the Government to repeal the emergency ordinance before it produces negative effects. Over the past month, since the Government passed the ordinance, the investors’ association had the opportunity to evaluate the impact that ranged from very harsh to dramatic. The banking, energy, and telecommunication sectors were the most important sectors facing major problems following the new taxes and market regulations provisioned by the ordinance. In an open letter to prime minister Viorica Dancila, CDR says that inducing unjustified shock in these sectors risks pushing them into a deep crisis. Based on consultations with economists and business leaders, CDR representatives came to the conclusion that, after ordinance 114, the access to financing in Romania may become more difficult, and the small and medium-sized companies (SMEs) will be significantly hurt, while the people's income will decline dragging down consumption. Households will also face difficulties in accessing bank credit, the capital market will play a lower role in financing the economy, the national currency may depreciate against other currencies and the state risks paying higher interest rates for financing the deficit. If taken seriously, the message may at least lead to real consultations between investors and the ruling coalition before the ordinance is passed as a law. Romania’s Romgaz expects 25% plunge in turnover, profits after new turnover tax Trade unions in Romanian banks expect 25% workforce cutdown amid higher taxes editor@romania-insider.com (photo source: Pexels.com)