After almost three years of government statements and measures that were eventually stuck on paper, the quality of the Romanian business environment remains an unsolved issue.
The new World Bank director for Romania, Croatia, and Bulgaria, Anand Seth, yesterday pointed to this problem that continues to be blamed for the gap separating Romania from the other European Union candidate countries when it comes to facilitating the establishment and growth of companies. The issue has been repeatedly mentioned both by local investors but mainly by the foreign ones, who have much more appealing alternatives.
"There is still much to be done to improve the business environment in Romania. We do have an unfinished agenda in this field, and these issues will have to be included in the future structural adjustment programmes," Anand Seth, World Bank director for Central and Southern Europe (Romania, Croatia, Bulgaria) said yesterday.
In the PSAL II agreement concluded with the World Bank, the government pledged to drastically cut the number of bureaucratic obstacles in the way of starting and growing businesses, simplify the licensing procedures for constructions, introduce fiscal reforms securing fair and uniform treatment for a wider taxation base.
"We want to make sure that reform measures are adopted not only together with trade unions, which, of course, have a say, but also after hearing what the business environment officials have to say," Seth added.
Parliament only endorsed the "tacit approval" ordinance as late as last month.
According to Seth, Romania's EU accession will be no easy process and will not yield any miraculous results, but it is the first step towards sustainable growth.
Romanian authorities must continue enforcing structural reforms to cut the quasi-fiscal deficit, which is threatening the stable macroeconomic platform created in the last three-four years, Anand Seth states.
"Our main wish is that this platform should be used, not wasted, as the risks come from quasi-fiscal costs, which are not comprised in the fiscal deficit," Seth said.
According to the World Bank official, the quasi-fiscal deficit currently accounts for some 1-1.5% of the Gross Domestic Product.
The quasi-fiscal deficit is the value of losses posted by the state-owned enterprises, which are not enclosed in the general consolidated budget.
Seth mentioned that the Executive should use the good macroeconomic results in order to push through with reform. He showed the World Bank would continue to support Romania in the enforcement of structural reform programmes, a field where some progress has been noted. razvan.voican@zf.ro
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