Resuming and supporting economic growth is the main challenge ahead of Romanian political decision-makers, but the model of development counting on capital in-flows to finance consumption must be replaced with an export-based strategy, reads this year’s edition of the White Book published by the Foreign Investors Council (FIC).
The Council says the resumption and support of growth is the main challenge ahead of Romanian political decision-makers, the outlook however being shadowed by the situation in the eurozone. Investors also believe that, ‘above anything else’, Romania must make its business environment more appealing to investors, because that will consolidate competition and productivity by acquisition of new competences and processes. Some of the foreign investors’ recommendations to authorities for improving the business environment are the reduction of social security contributions, reverting VAT back to 19 per cent, a lower VAT on basic foods, fruits and vegetable to curb tax evasion, adopting the holding law and complete exemption from the payment of reinvested profits.
Misu Negritoiu, Chairman of ING Bank Romania, Monica Iavorschi, Arctic, and Andrew Highcock, Ursus Breweries, are the new members of FIC’s board. FIC organized on Tuesday its annual meeting, where the representatives of the 124 member-companies elected the new board of directors. Seven of the board’s 15 members are foreigners. Jerome Olive, CEO of Renault Group, Markus Wirth, chairman of the board at Holcim, and Jean Valvis, President of Valvis Holding, left the board. James Hyslop, EBRD, replaced Claudia Pendred.