On the Eve of Romania Elections, EU-Romania Business Society Calls on New Government to Improve Conditions for Foreign Investors

BRUSSELS, December 9, 2016 /PRNewswire/ --

We write just six months since our European business investment group for Romania and with the EU states was constituted, on the eve of elections in Romania (due Sunday 11 December 2016), where a new governing administration with a new mandate is expected to be voted in, replacing a caretaker, technocratic Government.

This bulletin as we approach the end of the year is the first of what will become monthly reports on how we see the direction and prospects for Romania. The good news is that growth this year is expected to be the highest in the EU, but there are also worrying trends for business concerning the safety of investor capital.

In a period of increasing stress and instability for business, from Trump to Brexit, with growing Russian pressures across the region and the growth of populist political movements, we can say that we see some positive themes developing in Romania.

We can start with what are for the moment good signs.

In particular, we are encouraged by Romania's strong position on energy independence, in contrast to the situation in neighbouring countries which are largely dependent on Russian oil and gas. These countries, from the Baltics to southern Europe, continue to import large volumes of natural resources at great cost-and risk-to public finances, and they can create opportunities for corrupt practices as we have seen.

In Romania for the immediate future, energy security and the safety of supply are predictable, and these are not issues that threaten to destabilise the government or the nation as we have seen in Bulgaria and Ukraine. 

There is a good balance and diversity of energy flows into Romania, largely from Kazakhstan, which is now the majority provider of stock. These supplies are reliable, capacity and production is expanding thanks to public spending and private investment. Romania's refineries consistently rate among the highest in the region when it comes to efficiency and standards, and account for tens of thousands of good jobs and billions of dollars generated in taxes and export revenues for the Treasury.

But we also see some worrying signals . These risks need to be satisfied quickly by the new Government.

We are concerned about growing investor disputes between the Government and foreign companies that have directed their capital into Romania and built good profitable businesses.