Coalition for Romania’s Development sends new letter to PM, slams “damaging consequences” of GEO 114

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The Coalition for Romania’s Development (CDR), representative for the business environment, has sent a new letter to Prime Minister Viorica Dancila, warning that the emergency ordinance no 114/2018 is to negatively impact the business environment and the economy in Romania.

CDR says that in their view it is important that all potential consequences of these measures „impulsively adopted” should be brought to the decision makers’ attention and to be assumed by them.

What has mostly vexed the business environment is the GEO 114 is brutally changing the rules in such sectors that support the modernisation of the economy and the quality of life for the population: energy, telecommunications, banking sectors or the capital market. Inducing an unjustified shock to thse sectors risks pushing them to a deep crisis. The businessmen represented by the CDR are astonished by the suggestion that the private sector, particularly foreign companies, are the cause of the state’s failure to collect taxes and fees. These sectors, which have a significant contribution to the state budget and to the Romanian economy have been accused they are working to the detriment of their customers and of the country where they have invested billion of euro,” says  CDR press release.

The Coalition added that, following “intensive discussions” with renowned economists and important leaders of the business environment, it warns that GEO 114 might jeopardize the entire economy. “The access to financing might become more difficult in Romania, SMEs might be significantly affected. A decrease of revenues and consumption is possible. Citizens will find hard to access bank loans. Macroeconomic imbalance will be on the rise, the capital market will have a lower role in financing the economy. Ron might depreciate against other currencies. The state risks paying higher interests to finance the deficit. In the absence of any dialogue and of the long list of damaging consequences that we foresee, CDR is asking the Government to abolish GEO 114 before it causes negative effects. We are available for meetings to explain our analysis in depth“, the letter further reads.

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