Bucharest, 25 February 2014
On 25 February 2014, the Foreign Investors Council – FIC, organized a Round Table on transparency and predictability of the legislative act and invited Ms. Doina Pana, Minister Delegate for Social dialogue.
During the discussions, the message sent by the FIC was that, due to the lack of transparency in drafting laws, the economy will be suboptimal, investment decisions will be postponed or reconsidered, differences in relation to the EU will be slowly recovered, and, last but not least, the competitive advantages of Romania will be waived or significantly reduced.
The main objective of the FIC is to facilitate dialogue between policy makers and investors to find solutions together to improve the business environment in Romania. The FIC representatives repeatedly stressed out the importance of a stable and predictable business environment to attract long-term investments.
Mihai Bogza, President of the FIC, pointed out that "the dialogue between decision makers and investors is absolutely necessary to create the prerequisites for a sustainable economic growth. The adoption of measures without a prior dialogue, transparent and open with the business environment, reduces considerably the chance to turn the recent economic performance in a sustainable one, in the long term."
The FIC welcomes the recent changes to Law No. 52/2003, and encourages the authorities to comply with its provisions.
"Why are laws enacted if they are not put into practice? Acts insufficiently substantiated, without quantitative and qualitative impact studies, are still adopted, or the legislation is frequently changed, particularly in strategic areas such as taxation, without giving a reasonable time for implementation. The Romanian economic environment fully feels the impact of the lack of transparency in the decision-making process, which impact is also reflected in the continuous reduced level of direct investments in Romania", as Steven van Groningen, Vice President of the FIC said.
A series of situations exemplifying the deficiencies in the consultation process were presented at the event: the Insolvency Code, changes to the Fiscal Code, regulations in the field of renewable energy or environmental protection. “In 2013, the Fiscal Code was changed 39 times, and 282 articles of such code were amended and supplemented, while the Fiscal Procedure Code was amended 21 times. The business community wants a real consultation on issues that may affect the local business climate and a sufficient period of time for revisions of these legislative proposals. This will enhance the quality of legislation and will contribute to the uniform application thereof,” as Daniel Anghel, Co-Chairman of the Tax Group of the FIC said.
In conclusion, the message conveyed by the FIC representatives was that the legislative process in Romania should be aligned with best practices in the EU. Increasing transparency, predictability and stability of the legislative act will boost investors’ confidence in the business environment and in the competitiveness of the Romanian economy.
The Foreign Investors Council (FIC) is an association of the leading investors in Romania. The FIC was established in 1997 when it officially began its activity with 25 companies as members.
Today, the FIC has 118 member companies whose cumulated investments in Romania exceed EUR 35 billion representing approximately two thirds of the total foreign direct investment made since 1990.
The FIC includes companies providing the Romanian economy with a variety of goods and services and creating almost 200,000 direct and indirect jobs.
In Top 10 largest companies by turnover, eight companies are FIC members, and 35 member companies are included in Top 100 - as per the report "Major Companies in Romania" published in 2013, by IBP.
Foreign Investors Council (FIC) - www.fic.ro