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October 23, 2021

AmCham: Efforts to increase economic competitiveness are needed

In the chambers’ view, the concrete measures must target the fiscal system, attracting investment and governance and administration transparency.

In the context of a recently released Global Competitiveness Index (GCI) 2012-2013 by the World Economic Forum, that ranks Romania on the 78th position out of 144 analyzed countries, AmCham Romania (American Chamber of Commerce in Romania), continues to emphasize the importance of public policies and strategies for sustained economic growth and a competitive national economy.
“The Global Competitiveness Index outlook on the global economy remains a relevant tool worldwide for businesses and governments. While Romania’s increased ranking, up two positions since the previous edition, is good news, our country still lags behind most countries in the CEE and EU member states and efforts towards increased economic competitiveness need to be focused and intensified. Besides increasing Romania’s national competitiveness, as an EU member state, our country should also contribute to increasing Europe’s overall competitiveness” stated Valeriu Nistor, AmCham Romania’s President, a press release informs.
The 2012 – 2013 GCI places Romania in an efficiency-driven economy stage, based on the analysis of twelve inter-related competitiveness pillars: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.
In regards to Romania, the GCI identifies the most problematic factors for doing business as: corruption, tax rates, inefficient government bureaucracy, access to financing, inadequate supply of infrastructure, inflation, policy instability, inadequately educated workforce, poor work ethics, restrictive labor regulations, insufficient capacity to innovate, among others.
AmCham Romania’s policy and interaction with the Government have long focused on increasing Romania’s economic competitiveness, specifically addressing the obstacles outlined by the GCI.
Regarding the fiscal system, AmCham Romania recommends revising and modernizing the fiscal legislation and fiscal system, to reduce bureaucratic barriers and to maintain the flat individual and corporate tax as a competitive edge for Romania.
About the governance and administration, the foreign businessmen propose to ensure transparency in the decision-making process by upholding a proper consultation process with the private sector and all relevant stakeholders in order to ensure consistency and clarity of the proposed legislative changes, without prejudicing the fundamental principles of stability and transparency. Determined fight against corruption and zero tolerance to bribe policies through more effective law-enforcement actions to deter bribery, and by a more effective application of international judicial cooperation schemes to curb cross-border corruption schemes is another recommendation as well as full transparency and accountability in managing public funds, allowing external professional audit of the respective budgets and of their public money spending. Developing and implementing a comprehensive and coordinated plan to improve Romanian infrastructure towards EU standards of quality and coverage is also an AmCham idea.
The Commerce Chamber recommends to Romanian authorities to stimulate investments in key export industries and create incentive packages for local and foreign investors based on new technology implemented, number of jobs created, and high value added export capacity created. The institution thinks that developing the capital markets is an important alternative source of capital, for both private and public lending.

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