The members of the Foreign Investors Council (FIC) support the strategic, medium- and long-term approach to key areas, as is the case with the tax regime, which must be analyzed from the perspective of the results recorded at the level of collection and contribution to the state budget, but also having in mind the directions for the economic development. It is important to identify the elements that must be adjusted and the sustainable solutions for the Romanian state, as well as for companies and citizens. In particular, in the difficult macroeconomic context marked by the effects of the latest crises (pandemic, energy market, inflation, economic slowdown etc.), it is important to identify measures for recovery, which will ensure an economic and social balance without producing greater imbalances in the medium term.
Statements regarding the budget deficit bring ambiguity and uncertainty to investors, and the extent of deviations in revenue and expenditure at anticipated levels lead to concerns in terms of budgetary sustainability. While we believe that more solutions to ensure the state budget need to be considered and discussed, to the same extent we consider necessary to analyze the impact on the economy in order to limit the excessive burden on taxpayers while ensuring that budget amounts for investments and purchases of goods, services, and works, will be affected as little as possible, in order to ensure the continuity of economic growth.
Despite the current economic challenges, a positive aspect recorded last year are foreign investments: according to World Bank data, foreign direct investment inflows (FDI) accounted for 3.9% of GDP in 2022. Any legislative adjustment must take into account the maintenance of this positive trend that is an important resource for strengthening the economy and the state budget.
A holistic approach to the fiscal framework, fiscal-budgetary policies, tax administration, and wage policies is needed, to identify sustainable measures for the budget and the economy, ensuring fiscal equity, improved collection, adjusting imbalances, and reducing grey areas. It is vital that the authorities, together with the business environment, analyze the entire fiscal framework with a long-term perspective that supports the consolidation of public finances for the benefit of both the state, as well as the private sector. Any fiscal measures must be based on impact assessments and based on different scenarios, so as to avoid repeating past mistakes.
FIC remains at the Government's disposal for consultations on strategic directions for strengthening the tax system and ensuring predictability as a central element for stimulating investment in Romania. We believe that only through dialogue and transparency we can identify the best solutions for the state budget and the real economy.
The Foreign Investors Council (FIC) is the association that brings together the most important investors with foreign capital from Romania, approximately 120 of the largest companies in the country with a cumulative turnover representing one-fifth of the gross domestic product and having a significant contribution to the state budget. In more than 25 years since the organization was set up, FIC member companies have always sustained the importance of dialogue between the business community and the authorities. In order to contribute to the establishment of the directions of economic growth of Romania, FIC publishes every two years the White Book, which is a set of recommendations from members for the most important sectors, such as taxation, energy transition, human capital, technology and digitalization, etc., in order to discover the best solutions for the sustainable development of Romania's economy.