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The local business climate representatives, such as energy companies, SMEs or food industry producers say that the governing programme put forward by the coalition made of the Democrat Liberal Party (PD-L) and the PSD+PC Alliance (Social Democrats and Conservatives) merely sets the guidelines for 2009-2012, and that it includes few measurable or realistic goals.
“I think the provisions on the reorganisation of the state-owned commercial companies and the provisions targeting the achievement of a new structure of the National Energy Regulatory Authority are interesting”, Ion Lungu, commercial director at CEZ Romania company told the Ziarul financiar.
The company has two billion euros worth of investment projects in Romania.
The company has two billion euros worth of investment projects in Romania.
The food industry producers are sceptical when it comes to the promised 5% VAT cut on basic foodstuffs; such a measure should theoretically result in foodstuff price cuts up to 13%, boost consumption, eliminate the black market and bolster sales and businesses.
“The VAT cut for foodstuffs would be very good, it would be the biggest help the state gives the consumers, on condition that such cut were also seen at the shop shelves. It would push consumption up a lot, if such a move succeeded”, dairy producer Meggle Romania manager Waldemar Murgu told the Business Standard daily.
Managing director of dairy producer Covalact, Ioan Balan believes the VAT cut will not be enforced, although it is written in the governing programme.
Managing director of dairy producer Covalact, Ioan Balan believes the VAT cut will not be enforced, although it is written in the governing programme.
Representatives of the small and medium-sized firms (SME) are also reserved with respect to the programme’s provisions related to their activity, stressing that the ruling programme “includes mere political wishes that all the governments since 1990 till now have had”.The Evenimentul zilei daily quotes local business executives as saying the ruling programme is generous and optimistic, but it doesn’t say which the financing source is.
“One should ask oneself – what money does the government rely on in order to back up such social and economic measures”, said Cristian Parvan, secretary general of the Romanian Businessmen’s Association.He argued the future Government should have indicated which will be the first moves to make in the next six months and to present an evaluation of their costs.
Economics professor and former Finance Minister Daniel Daianu, when asked whether the governing programme made public on Tuesday by the PD-L and PSD is reasonable, said that “some people don’t realize how serious the global crisis is and they also don’t realize what its effects on the Romanian economy are”.
“It is pure illusion to believe that the crisis effects will be felt for just a year and afterwards the domestic economy will go on a fast upward trend. As for the programme goals, some of them might be achieved but only partially”, MEP Daianu stressed.
“It is pure illusion to believe that the crisis effects will be felt for just a year and afterwards the domestic economy will go on a fast upward trend. As for the programme goals, some of them might be achieved but only partially”, MEP Daianu stressed.
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