Loading ...Attending a conference on Thursday on Romania in 2010, Pogonaru said exports might become the engine to pull Romania out of the ongoing crisis.
That is why, he said, in order to protect local producers against wasting out, state aid and structural funds will have to be steered toward supporting the network of sub-suppliers to the Romanian economy. Another aspect mentioned by Pogonaru regards the right size of taxes.
‘When the social security contributions are too high and the flat income tax low, it is natural for employers, particularly SME owners to take out dividends to pay cash to their employees,’ said Pogonaru. He also pointed to a problem he called ‘taxing the untaxable.’
‘Talks about the mandatory corporate tax have proved there are certain fields nobody want to touch. For instance land amalgamation. What will happen to agriculture becoming subjected to taxation, on which the development of this field depends, and land amalgamation?’ asked Pogonaru.
As regards the banking system, Pogonaru said things have regained some balance, but the weight of the foreign capital in the Romanian banking system may become an issue of national security.
‘We have to wait and see whether banks will resume lending or roll over their old loans, a behaviour that triggered a 20-year crisis in Japan. We are witnessing dramatic changes in Greece and other countries on which the banks operating in Romania are dependent. In the euro zone, uniform requirements are needed because otherwise regulations in Austria or other country may trigger a capital run from Romania under legal and normal conditions,’ said Pogonaru.
The conference discussed Romanian economic life in 2010 in the context of the latest international developments; prospects for business in Romania, and public policies, which might slow the economy down or drive it forward.
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