Bloomberg: Romania has chosen a bad time not to focus on economy

Romania is giving priority to controversial change in the judicial system, just in a moment when the economic growth is beginning to lose the fastest rhythm in EU. The proposals affect the business people trust and risk to drive off even more the companies, which are already unsatisfied about the tax revision from 2017, according to an analysis of Bloomberg.

“The reform risks to weaken the business and operational environment of Romania on a long period, it affects negatively the investors’ trust and even the economic perspectives of Romania,” said
Tiziana Papa, analyst at BMI Research, a division of Fitch Group.

The weak trust comes in a moment when Romania needs the corporations’ expenses to compensate the consumption boom attenuation, which helped at an increase in the GDP by 8.8 percent. While PSD focused the Government expenses on the increase in salaries for the public sector employees and taxes reduction, the private sector is less willing to invest.

“It’s very unlikely that the public investments compensate the consumption slack. It’s more likely the other way around,” said Ciprian Dascalu, economist at ING Bank NV.