Romanian Employers Present Govt With “Anti-Crisis Decalogue”

Romanian employer representatives set the Government a "Decalogue of Anti-Crisis Measures," stating Romania’s economy is ill and needs "investment transfusions", employer representatives said after the meeting at the Government.

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"We have presented two ways to build mechanisms that would help real economy. The economy is ill and needs investment transfusions. The Government needs to realize it can no longer use private sector money for the economy, since this money needs to be reinvested," said UGIR 1903 president Cezar Coraci.

The propositions refer to important themes that would be discussed by the Government in the following period.

The president of the National Confederation of Romanian Employers (CNPR), Mihai Manoliu, said the propositions made target, among others, the development of research and education, the granting of facilities to SMEs and the securing of financing sources for the development of projects.

"We have deplored the fact that there is no anti-crisis strategy. We also said the current ordinance (postponing overdue payments) only has text, but lack content. They did not consult us, and the measures are too theoretical and inapplicable," Manoliu said.

Employer representatives also requested the tax exemption, over a six to 12 month interval, for employers creating jobs and hiring the unemployed, as the proposition to cut 50% off social security contributions being considered insufficient.

The president of the National Council for Small and Medium Sized Companies in Romania (CNIMMPR), Ovidiu Nicolescu, said he presented the Government with the results of an inquiry according to which seven out of 10 firms in Romania have problems, and 15% said they are bankrupt.

The CNIMMPR inquiry revealed that 23% of companies in Romania managed to maintain activity, 5% managed to amplify it and 72% reported an important decrease in activity, while 15% declared bankruptcy.

In addition, the propositions made in Government targeted the increase of the money multiplication effect in economy, the tax exemption of reinvested profits, because such a provision would lead to the creation of over 100,000 jobs, and the reintroduction in circuit of institutions that can no longer be sold.

The meeting also contained talks on the “First Home” program, as employer representatives asked that the program focus on the construction of new homes, so that investments can be stimulated.

In addition, employers asked Prime Minister Emil Boc to give up the lump sum tax, a measure that “will show its inefficiency at the end of the year.”

The head of the Government told employers that one of the Cabinet’s priorities is massive public investment in infrastructure.

As for the tax exemption of reinvested profits, Boc said this measure will be applied starting with the second half of the year, as the Ministry of Finance is considering the promotion of a normative act in this respect, after talks with the European Commission and the IMF.

A new meeting between employer representatives and the Government will be held mid-August.

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