What are entrepreneurs waiting from the future government
Local entrepreneurs have drawn attention to the risk of a potential economic recession in Romania next year and have called on the Executive to take measures to prevent it
Corina Cristea, 17.12.2024, 13:50
Entrepreneurs, who convened on Monday for a specialized online event, have emphasized the risk of a potential economic recession that might hit Romania in the second part of 2025 and have called on the new Executive to take measures to avoid it.
They recalled that 2024 was an extremely challenging year, when, besides the difficult economic and geopolitical background, the business environment had to face a significant fiscal-budgetary instability. “Romania is in an extremely fragile context, being the only EU country combining big twin deficits: we have an estimated budget deficit of 7.9% and a current account deficit standing at 8.4%, which is very much likely to grow by the end of 2024. According to statistic data, the current account deficit grows by at least 1.5 in December, mainly in the context of the 2024 election year,” says Cristina Chiriac, the president of the National Confederation for Women Entrepreneurship (CONAF).
Romania will also have elections in the first semester of 2025.
Cristina Chiriac: “I believe that if we want to avoid going into the economic recession zone, we must adjust the budget deficit and the current account deficit, without resorting to difficult measures. I mean, we must cut public spending, mainly in the non-productive areas; we must increase the effectiveness of tax collection and avoid fiscal overcharging in the business environment.”
Business people said that under the present circumstances, when budgets must be adjusted almost every three months according to fiscal or legislative amendments, entrepreneurial companies cannot work with multiannual budgets, draw up business plans and make future forecasts.
The need for predictability has also been underlined by Feliciu Paraschiv, vice-president of the National Association of Small and Medium-size Entrepreneurs in Romania.
Feliciu Paraschiv: “We are having a series of big issues with the budget deficit and the persistent inflation as they come together, you know. And, at a better look we see that we are also having uncertain taxation, where the legislative amendments are more than ever.”
Entrepreneurs have also mentioned the need for keeping inflation under control, and avoiding the implementation of other similar measures such as the e-Factura, (e-Invoice) or e-Transport, which have hindered the activity of companies. They have also urged the Romanian politicians to rely more on business expertise and endorse the measures focusing on the good functioning of the economy only after talks with all the parties interested.
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