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November 15, 2019
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Foreign investors blame cascade of emergency ordinances. AmCham sounds alarm on the accelerated degradation of the quality of public policies CDR sends letter on the bad consequences of GEO 114/2018 for the business environment and for Romania’s economy

The pace of the concurrent changes, by emergency ordinances, to legislation in multiple sectors that are strategic to the economy is unjustifiably fast and does not allow going through all the necessary steps to ensure the predictability, transparency and assessment of the economic and social impact of the adopted measures, the American Chamber of Commerce in Romania (AmCham) warned in a Friday release.

AmCham Romania sounds alarm on the accelerated degradation of the quality of public policies, regulation and governance in Romania, the release reads, adding that such fast-paced changes to the law, which do not allow the completion of all the necessary steps so as to ensure the predictability, transparency and evaluation of the economic and societal impact of the adopted measures, have turned the National Reform Program into an obsolete document for outlining nationwide reform priorities, while the outcomes of the projects implemented together with the World Bank, which were aimed at restructuring the reform-implementation mechanisms with the central government are literally forgotten.

According to AmCham, while the business milieu requests the reversal of Ordinance No. 114/2018 on budgetary – fiscal measures, the government announces new legislative projects with widespread implications for the economy, which deepen the uncertainty and the risk that Romania will be vulnerable in a global, regional and national economic context, and in an economic cycle that has reached maturity.

The cascade of emergency ordinances that actually lack urgency and deviates from regulations, such as the European ‘better regulation’ approach, from the approach to the impact of new regulations on SMEs, or from the Regulatory Impact Assessment, is sometimes aggressive, induces a lack of predictability in the economy overall, dents the credibility of the regulatory process, puts under question the reasons behind these measures taken despite repeated negative signals from those concerned, and takes Romania farther from its commitments undertaken within the European structure. As an irony, all these developments are happening exactly in the period when Romania receives the highest attention from the member states and the European institutions, as we hold the rotating Presidency of the Council of the EU. AmCham Romania draws attention to the high price Romania is paying in terms of the country image and credibility among investors, which were built over time, with sustained efforts and which are very difficult to regain once lost. Meanwhile, the Romanians who still chose to stay in the country have started footing the bill for GEO No. 114/2018 and the companies give up investment and expansion plans in favor of other markets. We call for a return to a transparent and constructive regulatory process that pursues long-term development goals rather than partisan momentary interests, the release reads.

AmCham considers, on the other hand, that the normal pace of preparation, public consultation and approval by Parliament of the draft 2019 State Budget is distorted and the approach hinders a quality public debate on the most important public policy instrument for the allocation of resources this year.

 

CDR: Letter on the bad consequences of GEO 114/2018 for the business environment and for Romania’s economy

 

On Wednesday, Coalitia pentru Dezvoltarea Romaniei (the Coalition for Romania’s Development -CDR) sent a letter to the decision-makers in Romania, explaining the consequences of GEO 114/2018 from the perspective of all the affected industries, as well as of Romania’s economy as a whole. The letter was sent to the President, the Prime Minister, the Public Finance Minister, the Energy Minister, the Minister of Communications and Information Society, the Minister for the Business Environment, the Economy Minister, the Speakers of the Senate and Deputies’ Chamber and the leaders of the parliamentary political parties, the President of the National Commission for Strategy and Prognosis, the Presidents of the Financial Surveillance Authority, the National Authority for Administration and Regulation in Communications and the National Regulatory Authority  for Energy and the Governor of the National Bank of Romania.

CDR made this effort because in our opinion it is important to bring all the possible consequences of these unexpected measures to the attention of the decision-makers, and if they don’t waive them, they will have to assume them.  The business sector cannot be blamed later for the negative economic consequences that it tried to explain to those who have the mission and the competence to predict and avoid.

A copy of the letter that was sent is available on CDR’s webpage.

https://coalitia.org/wp-content/uploads/2019/01/CDR_OUG114_PM_Viorica-Dancila_30ian2019.pdf

 

About the Coalition for Romania’s Development (CDR)

 

CDR is a private, apolitical initiative built as a collaboration agreement by the collective participation of its members and gathers organisations such as the American Chamber of Commerce in Romania (AmCham), the French Chamber of Commerce in Romania (CCIFER), the Romanian Businessmen Association (AOAR), the Romanian-German Chamber of Commerce and Industry (AHK), Romanian Business Leaders, the Foreign Investors Council (FIC) and Concordia Employers Confederation.

The CDR members contribute voluntarily with the resources and experience needed to formulate common opinions on the public policies that have an impact on the business environment. The companies represented by the 25 business organisations that are CDR members have more than one million employees and generate around 50% of the GDP.

CDR aims at providing a coherent basis for the consultation with the Government and other public institutions on themes that have an impact on the economic and business climate in Romania.

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