PwC: Rising wages and poor infrastructure obstruct foreign investors

The rising wages, the increasing shortage of a specialised workforce and the labour conflicts of recent months are eroding Romania's competitive edge as a destination for foreign investment projects, whilst the lack of infrastructure is also one of the biggest obstacles, Vasile Iuga (photo), country managing partner of PricewaterhouseCoopers Romania, told ZF. "These factors are compounded by bureaucracy and non-receding corruption, the high volume of payments for taxes and the rigid labour legislation." PwC head considers some investors are likely to wait for few more months before launching long-term projects because 2008 is an electoral year. "All the above-mentioned aspects are closely monitored and analysed by foreign investors when choosing where to direct their funds".