about us | newsletter | contact | archive | members area
Mihai Patrascu, evoMAG
Competition is beneficial to the end customer»
  Features:      COUNTRY FOCUS   |   SECTOR ANALYSIS   |

Statistically speaking, we're fine

The March statistics on net salary income show an 80 RON hike in absolute value. This is up on the February figures, but down year on year. Are we to understand that we are fine or are we kidding ourselves... statistically speaking?

June 2011 - From the Print Edition

It probably depends whom you ask, the authorities or a professor for instance. But to be realistic and objective, what’s really important is that the trend should continue. If next month the same statistics reveal that we have reached a peak and are free-falling, then we have a problem.
And the general outlook does not seem too bright. Take for instance the calls from the International Monetary Fund (IMF), which is insisting on the privatisation, reorganisation and even bankruptcy of several state-owned companies. This might look good on paper and should have been done years ago, but would you think so if you were one of the 7,000 employees about to lose their jobs? What do the official statistics matter to these thousands of soon to be ex-employees and how will the numbers help them as they struggle to stay above the breadline?
Another piece of good news is that social security contributions will soon be reduced. But again there are big questions. Will those cuts directly affect employees’ salaries or be deducted by employers? What’s clear is that the decision should be aiming to encourage consumption.
And what is more worrying is that foreign direct investments in Romania fell more than 20 percent in the first quarter of this year compared with the same period of 2010. If we look at the trend, it’s been downhill from as far back as 2009. Let’s not forget that some European countries have recently emerged from the crisis, and are perhaps not even talking about it anymore. But then they didn’t have a president who stated on national television, as Basescu did, that their country is no longer in recession.

This slide in FDI indicates that Romania is no longer sufficiently attractive to investors, as reform that means only cuts and not actual profound reorganisation puts us even further from the “light at the end of the tunnel”.
Recently, we have read that the Transylvania highway is a not a priority for Romania. Which invites the question: which highway is the priority for Romania? What serves a debate over which highway we should build when we remain light years behind our neighbours, especially from the West, which have not made one highway a priority, but all possible highways that could pass through their countries?
We have to understand that working on Transylvania highway does not mean we cannot work in parallel on another three highways. Given the layoffs we’ve been talking about, there are plenty of workers available...
And money is also available. Romania boasts the “distinction” of being in last place for actual payments from EU funds. While until now we could console ourselves that our neighbours from the south, the Bulgarians, were making even slower progress, this is no longer the case and Romania is left playing catch-up. The worst results were in infrastructure, precisely where the big problem was that the priority “was not correctly set”. But otherwise, we’re fine...

Dana Verdes

There are 0 comments:

Validation Code

0 Comments  |  6667 Views
Daily Info
AFI Europe Romania increased its net operating income by ten per cent to over 51 million Euro during 2017

AFI Europe Romania published its financial results. The Net Operating Income (NOI) from its income producing assets in Romania reached to over 51 million Euro in 2017, represe...

BRD to pay highest dividends in bank's history

BRD Groupe Societe General, the third-biggest lender in Romania, proposes a gross dividend per share of 1.64 RON from last year's net profit, the highest in the bank's history...

Uber to launch first food delivery service Eats in Bucharest

Uber will launch in the first food delivery service Eats in Bucharest and in 100 cities in Europe, Middle East and Africa, says the logistics head of Uber. In Bucharest the la...

DS Smith is looking for growth on the Romanian packaging market

DS Smith announced the completion of its 208 million Euro acquisition of EcoPack and EcoPaper, Romania. The acquisition significantly increases DS Smith's capacity to serve cu...

New brand identity for Radisson Hotel Group launches at IHIF

Carlson Rezidor Hotel Group announces its rebranding to Radisson Hotel Group, effective immediately, at the International Hotel Investment Forum (IHIF) in Berlin.





More on Features
Romanian business: There is still room for improvement

Romania is still an attractive market for investors within South-eastern Europe, with advantages in terms of labour cost and skilled professionals. But local entrepreneurs ...

1 Comment

Logistics industry: Growing demand

The industrial, logistics and office sectors in Bucharest were the drivers of the real estate development market in the first nine months of the year.

Telecom industry: Keeping pace with next-gen tech

The telecom industry is transforming before our very eyes. And in many instances, there are no hard-set rules for the new digital platforms, tools and lifecycles in which t...


Digital Banking: Challenges and opportunities

Digitalization is radically transforming the banking industry, enabling new products, services and business models. This transformation will take time to complete, forcing ...


Digital transformation of energy management and automation

Interview with Marius Persinaru, Country President Schneider Electric Romania & Republic of Moldavia


Principles Governing Foreign Investments in Romania

The legal regime of foreign investments in Romania is governed by the principle of equal treatment, which means that, subject to the principle of most-favoured-nation treat...

Chinese investments in Romania: Aiming potential

For many years, China has had only several large companies present and active in Romania, mainly in technology, energy, trade, farming and several newly announced ones in a...