BUSINESS COMPANIES ECONOMY FINANCE&BANKING INVESTMENTS

German companies in Romania dispute Government’s new fiscal measures

The way the new fiscal measures adopted by the Government were communicated is generating a feeling of uncertainty among German companies, considering that the companies fear extra costs, especially those active in the IT field, but there are also uncertainties concerning the planning and implementation of the future fiscal policies, the Romanian-German Chamber of Commerce and Industry (AHK Romania) announced on Tuesday.

“German companies in Romania consider that the measures that are about to be implemented in such a short time, their effects, and the diminishing of fiscal predictability could negatively influence, in the medium- and long-term, both the investment climate and the country’s and companies’ competitiveness,” the communique released by AHK Romania reads.

The Chamber of Commerce claims that, against the backdrop of the negative statements repeatedly made about foreign companies in Romania, “making a difference between Romanian and foreign or multinational companies does not correspond to the spirit of a globalised economy.” Thus, the considerations against foreign capital contravene not only the goal of continuing to attract foreign investments, but such “generalised and unproven accusations are completely counterproductive for the development of the Romanian economy,” AHK warns.

Moreover, the organisation considers that Romanian authorities should take the necessary measures in what concerns the development of vocational education, because the German business environment suffers from labour shortage.

“Especially in the manufacturing industry in which numerous German companies are active, there is an imperative need for qualified personnel. From one year to the next, German companies complain ever more about the lack of personnel. Hence, AHK Romania is asking the Government to considerably hike investments in key domains such as education and infrastructure and to intensify the modernisation of the administration,” the communique reads.

German companies in Romania are among the biggest employers and investors. Around 7,500 German and German-capital companies are active in Romania, most of them located in Bucharest and the Timis, Sibiu, Brasov, and Cluj counties. According to AHK’s estimates, they have more than 250,000 employees.

“German companies have invested continuously and for the long term in Romania in the last 25 years. German investments in Romania total more than EUR 9.2 billion (at the end of 2016). Bilateral economic ties have continued to grow strongly in the first half of this year too. Exports to Germany have totalled EUR 7.2 billion in the first six months of this year (+18.2 percent year-on-year), and imports have grown to EUR 7.3 billion (+7.9 percent). Germany remains by far the most important economic and trade partner (23.1 percent of total exports and 19.9 percent of total imports),” the communique reads.

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