AmCham Romania president: GEO No.114 has led investors to believe anything is possible in Romania

The provisions of the Government Emergency Ordinance (GEO) No. 114 have led investors to believe that anything is possible in Romania and that the rules may change during the game, president of the American Chamber of Commerce in Romania (AmCham Romania) Ionut Simion told a press conference on Thursday.

“Ordinance No. 114 didn’t necessarily determine companies to quit Romania, but it has induced into business decision makers the idea that anything is possible in Romania and that the rules can change during the game. Anyone seeking to attract investments has to convince a panel of investors to allocate money for a certain plan. All we did was create ourselves a competitive disadvantage, because such measures came without real consultation. As far as I know, the debate on changing this ordinance continues,” said Simion.

In late May, Minister of Public Finance Eugen Teodorovici said that there weren’t many aspects left for clarification in GEO No. 114/2018, stating that two subjects had already been closed – that related to pension Pillar II and that of the new benchmark index that governs the tax on the banks’ financial assets.

“A little earlier I gave the example of the government approving today the aspects related to pension Pillar II, which closed the debate thereon. In the banking sector, you know very well that Ordinance 19/2019 has also put an end to debates on the banking sector’s new benchmark index and the tax on financial assets, so these are two closed subjects which have been so to say clarified with the partners in the market, specifically the banking system, and the pension managers, respectively. Therefore I think there aren’t many aspects of the GEO No. 114 left unclear, but if some are still under debate, they will be settled by the same way of communication and decision,” Teodorovici said back then.

“Not only does GEO No. 114 have a lot of provisions that are not challenged, but they are very well received by the population and the economic environment,” Teodorovici also said, underscoring that all the decisions the government was to take from that date on would be preceded by dialogue.

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