about us | newsletter | contact | archive | members area
AURELIA COSTACHE, EY
There have been initiatives in the industry to pilot the leverage upon digital informati»
  Features:      EDITORIAL   |   COUNTRY FOCUS   |   DECISION MAKERS   |   SECTOR ANALYSIS   |   BUSINESS LEADERS   |   EXPERTS PLATFORM   |

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



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  5052 Views
Daily Info
Office stock to increase by 350,000 sqm this year, says Colliers

Romanian office market registered last year the highest rate of deliveries in the last seven years, and the upward trend will continue in 2017. This year, the stock of office ...

VIG profit doubled to around 407 million Euro last year

Vienna Insurance Group (VIG) profit before taxes more than doubled to around 407 million Euro last year, according to preliminary figures for 2016.

Enel to invest 329 million Euro in Romania in 2017-2018

Enel has planned investments for a total of 329 million Euro for the current regulatory cycle ending in 2018, of which of over 151 million Euro are due for 2017 and 178 millio...

Commissioner Cretu underscores need for monitoring implementation of major projects in Romania

European Commissioner for Regional Policy Corina Cretu welcomed Romania's Minister of Research and Innovation Serban-Constantin Valeca in Brussels to discuss the latest develo...

Uber to launch carpool service in Romania by 2020

Uber Romania said that the app reached 250,000 users in 2016, three times higher than the launch in February 2015, with Romania ranking second in Central and Eastern Europe af...

 
 
   
advertising

advertising

advertising

advertising

advertising

advertising

More on Features
Romania: Every market has a silver lining

Authorities should continue to adjust their models of economic growth and put more emphasis on the absorption of EU funds and infrastructure development, according to the p...

Insurance market going digital

Insurance companies face many challenges every day, but nowadays it seems that the adoption of digital technology might be the biggest challenge yet. The digital revolution...

Tuchila, Romanian Banking Association: Digitalization in the financial banking services could be a game changer

Competition is increasing in the banking and financial services, there are new entrants on the market and this is driven by the customers' requirements in the digital era, ...

Romania's hospitality industry raises a glass to constant progress

"Slow and steady wins the race," they say, and it seems that Romania's hospitality industry plans on doing so. Step by step, the market has shown that it can grow despite c...

Adrian Peake, Medicover:The economic growth offers confidence to invest in development and people

As Medicover Romania seems to have an accelerated growth by opening new clinics and acquiring other players, Alexandra Cioboata talks to Adrian Peake, general manager of th...

Private management: from papers to facts

Case study: Nuclearelectrica

The Romanian-German intertwining: die Reise goes on

Germany has always been a strong partner to Romania and this year is no exception. The country remains Romania's largest trade partner, German investors are confident and k...