Foreign direct investments (FDI) in Romania reached EUR 3.8 billion in the first 11 months last year, 56 percent less than in the same period of 2008, according to recent data released by the Romanian Central Bank (BNR). The volume of FDI dropped even more in November last year, when it reached EUR 105 million, down 90 percent on the almost EUR 1 billion in November 2008.
This was the highest fall throughout last year, as the month-on-month declines were usually 50 percent. It came after a period of year-on-year FDI increases, with Romania among the investment hot spots in the region. Foreign investors, who lack funding for new projects and are trying to cut back market exposure, could be deterred by a possible increase in local taxes, in the government’s attempt to swell the state coffers. So far, a social contribution tax on intellectual rights contracts has come under discussion, but the actual measure was postponed. The tax, which would have benefited workers who earn their living through intellectual rights only, could have meant higher expenses for employers.