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

Autor: Adelina Mihai

08.12.2010, 00:09 12

The state budget could raise around 180 million euros a year inadditional revenues from taxes due for 90,000 new jobs as a resultof eliminating red tape and of modifying the temporary workregulations, say representatives of the Foreign InvestorsCouncil.


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

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