The Foreign Investors Council – FIC launched the tenth edition of its White Book, entitled “Regaining Momentum”, in the presence of Klaus Iohannis, the President of Romania.
The White Book, which is published every two years, is a thorough analysis of the Romanian economy in which FIC members strive to identify the progress recorded since the last edition and, at the same time, recommendations for further improving the business environment in the medium and long term. FIC members account for roughly two thirds of the foreign direct investment in Romania.
In its effort to improve the business environment FIC has a constant dialogue with Romanian authorities. FIC’s objectives are sustainable economic growth by improving the business environment, increasing transparency and predictability as well as developing a functional free market and integrating the Romanian economy in the European single market.
In his speech addressed to the representatives of the business environment, the Romanian President noted that prosperity can only be the result of encouraging private initiative by equally supporting foreign investments and local capital.
The Romanian President, Mr. Klaus Iohannis declared: I appreciated the message that accompanies the report being launched today. The main objective is to rebuild the trust of investors and entrepreneurs in the Romanian business environment. Romania’s progress can only be the result of a new development model which is focused on competitiveness and which encourages entrepreneurship, innovation and added value and which leads to the creation of well-paid and productive jobs.
In his message to the business community the President underlined the need to improve the quality of institutions because transparency, predictability and stability are the prerequisites for stimulating investments and entrepreneurship.
At the end of his speech President Klaus Iohannis declared that “public authorities have to be the first to demonstrate professionalism and responsibility in their relationship with the business environment”. Because trust is essential in the relationship between the state and citizens the President of Romanian said that “We need a state that does not elevate itself above citizens and works for them not against them. We need a state that is the fulcrum of the business environment and not the other way around. The President congratulated the representatives of the companies that attended the event for their performance so far and wished them good luck for the future.
Mihai Bogza (photo), the President of FIC declared the following: “The White Book is the result of the concerted work of all our members and it contains a large array of recommendations regarding infrastructure, energy, taxation, agriculture or healthcare, to name just a few.
…We have been noticing recently a slight improvement in investor and consumer confidence after the difficult years that followed the economic crisis. This is something we have also seen in our last Business Sentiment Index, which FIC publishes every six months. FIC’s main recommendation remains the general improvement of the business environment with greater legislative and administrative stability and predictability.”
FIC recommends increase in supplementary deduction of R&D related expenses in Romania
Supplementary deduction of research and development related expenses for scientific and technological projects and programmes directly serving key national socio-economic programmes should be increased, according to recommendations of the Foreign Investors Council (FIC) included in the 10th edition of the FIC white book ‘Regaining Momentum.’
‘An increase in the supplementary deduction of R&D related expenses for scientific and technological projects and programmes directly serving key national socio-economic programmes and with potential to increase Romanian Intellectual Property assets could be made a priority. This would support the Government’s strategy for R&D and Innovation to boost Romania IP assets that are currently well above the EU average. R&D initiatives could also be encouraged and financially supported by consortiums formed between technical universities and industry partners. To facilitate this process, an analysis of best practices applicable in other states in relation to the implementation of R&D incentives would be particularly useful,’ says FIC.
FIC is also encouraging the elimination of restrictions caused by the use of ambiguous terms and the clarification of the norms for the application of this facility. In addition, FIC considers that strong inter-institutional cooperation between the Ministry of Finance and the Ministry of Education and Scientific Research (Ministry of Education) would bring benefits to the general legislative framework dealing with R&D facilities by bringing clarity and by tailoring it to the
business environment’s needs.
According to the FIC document, The R&D incentive has been the subject of intense discussion during the past 18 months and specific positive measures have been implemented, such as an increase in the supplementary deduction of R&D related expenses, from 20 per cent to 50 per cent. However in order for this tax incentive to reach its full potential and to represent a real opportunity and attraction for companies performing activities connected to this area FIC considers that changes should be made.