President Klaus Iohannis on Tuesday said that a series of governmental measures show a serious lack of responsibility, seriousness and vision regarding the economy flow and he asked the Government to cease the taxation experiments.
“I want a Romania with a healthy economy, a well-governed country where today’s benefits are not wasted tomorrow, and the measures taken today don’t pawn the future of the next generations. Unfortunately, a series of governmental measures of late show a serious lack of responsibility, seriousness and vision on the long-term and medium flow of our economy. I have seen how, without consultations and minimum impact assessments, the Government has changed the taxation system for some of the most important areas. Probably without the new fees and taxes introduced by the Government Emergency Ordinance 114, which however the government members have constantly denied, the budget for the current year would have felt constraints. Through the measures taken in the last days of last year, the last shade of confidence investors could have had in the current economic policy was lost, too,” the head of state said at the reception organised by the Romanian-German Chamber of Commerce and Industry (AHK) at the Palace of Parliament.
He asked the Government to “cease the taxation experiments” and to respond to the real problems that the business environment is signalling.
German ambassador Cord Meier-Klodt: We follow with concern certain Gov’t measures related to economic environment
German ambassador in Bucharest Cord Meier-Klodt stated on Tuesday that the Government’s decisions regarding the taxation of certain sectors are being followed with some concern, showing that some of the new German investments already planned in Romania are being reanalyzed, postponed, or alternative locations are being sought.
I intentionally do not want to talk about current government decisions, but if we speak of leadership, we need to talk about trust, predictability and reliability. This is the essence of a climate of confidence: both in politics, in diplomacy and in the economic sphere. That is why we are following with some concern the above-mentioned measures: given the lack of dialogue and consultation of those directly affected, before making a decision; as a result of the lack of a transparent impact study; for fear that a new trend could develop, which could extend to other economic areas. These create insecurity! Moreover, what creates insecurity is the public and indiscriminate presentation of foreign companies as the problem or even the enemy of society,” the German ambassador said at the reception organized by the Romanian-German Chamber of Commerce and Industry at the Palace of Parliament.
In context, he urged business representatives not to let themselves be provoked, but “to combat defamation firmly and with solid arguments! Defend your achievements and draw attention to the contributions made by the German economy over the years!”
I would like to tell our partners in the Romanian Government: You have a true friend in us! German companies are committed in the long term. They will not pack their bags too soon. They certainly can deal with some strong storms. But they have become more prudent. Some new, already planned investments are already being re-analyzed, postponed or even alternative locations are being sought. And that’s not because today the framework conditions would be much better elsewhere, but because it is supposed they will be tomorrow if the trend of insecurity persists. My New Year wish addressed to our Romanian partners is very simple: talk to us, listen to what we have to say, inform us in a timely, open and transparent way about your plans and decide only after carrying out a robust impact assessment of the measures. Thus, the degree of trust can increase and we can continue, together, in the next few years, the success story of this country’s economy. This would be a positive and clear signal, especially in the context of Romania’s so highly important Presidency at the Council of the European Union, isn’t it? the German ambassador added.
Cord Meier-Klodt stressed that in terms of the security policy, it has become an anchor of stability in the south-eastern flank of NATO and the EU. From a political point of view, it has become an important voice in an important strategic region, if we think of the Western Balkans, Turkey, or the Eastern Partnership. Romania can be a voice of balance in many future topics, relevant to the entire Europe – especially between the interests of the Western and Eastern European states. It has already proved it many times, not least at the Three Seas Initiative Summit. Romania has come a long way from an economic standpoint. In the last two decades, the Romanian economy has grown almost five times! At present, this country has a significant IT sector in Europe. To our shame, we have to admit that there are faster Internet connections here than in Germany. (…) Many ‘German’ cars would not work without certain components manufactured in Romania. This is an impressive success story, to which the German economy has considerably contributed over the years, Cord Meier-Klodt underscored.
The diplomat added that about a quarter of a million Romanians are employed by German companies.