Romania needs major reforms to grow by 5-6 percent of GDP, says FIC

The Foreign Investors Council (FIC), a business advocacy group stated Romania may return to yearly growth rates of 5-6 percent of GDP, if it undergoes a major reform program to stimulate investments and spur job creation.

The FIC suggested that Romania’s top priority should be ensuring a “durable economic growth”, based on its competitive advantages.

Daniel Chitoiu, Public Finance minister, said the durable development requires a strong private sector that is independent from political influence.

“The model of Romania’s healthy economic development needs to focus on investments and on the capitalization, especially through exports, of Romania’s competitive advantage it can gain industry, energy and agriculture,” said Chitoiu, on Thursday, during a FIC roundtable on fiscal policy.

The government plans to rewrite the fiscal code and fiscal procedure code by year end, in a move designed to increase predictability and institutional efficiency, according to Chitoiu.

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He mentioned the increase of the taxation base and the reduction of the fiscal evasion as the short term measures that can improve tax collection.

On the long term, authorities want to overhaul the entire fiscal system and have a proactive approach in relation with taxpayers.

Serban Toader, president of FIC’s Fiscality Group, suggested that a fiscal policy needs a coherent fiscal strategy on the medium and long term to sustain economic recovery. He also called for more transparency in the decision making process.

Daniel Anghel, co-president of the Fiscality Group, said: “FIC considers that a stable fiscal system is fundamental for attracting investments in Romania.”

The council stated that a constant dialogue with the Public Finance Ministry can sustain the development of legislation that fits all parties involved.

Ovidiu Posirca