Elimination of red tape and more flexible labour contracts could lead to 90,000 new jobs

The state budget could raise around 180 million euros a year in additional revenues from taxes due for 90,000 new jobs as a result of eliminating red tape and of modifying the temporary work regulations, say representatives of the Foreign Investors Council.

The calculation was made by Lucian Anghel, chief economist of the BCR and by Laurian Lungu, Managing Partner of Macroanalitica.
"Our calculations show that a more flexible labour legislation could see the creation of 90,000 new jobs in the short run. The share of legally-employed people - 4.2 million compared with the 10 million people making up the economically active population is too small," said Shachar Shaine, chairman of the labour legislation working group within FIC.
The main modifications proposed by foreign investors target the elimination of red tape when it comes to layoffs, the possibility to extend contracts of temporary employees and to cut working hours to match the salary cuts made during the times when production is down.