The fiscal changes announced by the new government are directed against the business environment and are a real threat to the stability and predictability of the economic policies, German-Romanian Chamber of Commerce (AHK) warned in a press release.
“The proposed fiscal model is detrimental to Romania and disfavours all companies, whether national or multinational, leading to loss of attractiveness of the investment site for German companies. The announced measures will have direct negative effects not only on companies, but also on Romania’s population. In the medium term, these measures could lead to job and investment cuts, which will entail other negative consequences, such as the exodus of the well-qualified labor force, a trend from which Romania is already suffering,” the release also reads.
According to the German investors’ representatives in Romania, making a difference between Romanian and foreign companies or multinational companies is an error.
“German companies are an integral part of the Romanian economy. They are also well integrated into national, regional, local systems and bring a decisive contribution to gross added value, but also helps to increase competitiveness by transferring know-how. These companies are investing heavily in employee training, research and development, often in collaboration with national research institutions, and technological development of the company. About 7,500 German companies and with German capital are active in Romania. They are thus an important employer who in recent years has contributed decisively to creating and providing jobs in Romania,” AHK points out.
German businessmen also emphasize that predictability, stability, transparency and the rule of law are so important in order to plan for new investments and to make economic activities successful.
Germany is, through its exchange trade of over EUR 26 billion (over 20 percent of domestic foreign trade), Romania’s most important commercial and economic partner.