Cristian Cojanu
With the stir of the European Parliament elections subsiding fast, the Government has embarked on new efforts to get the country geared up for a new set of elections: the all-important November presidential ballot. One of the measures announced by the Cabinet stipulates a five per cent cut in the social contributions paid by employers, despite objections by international lenders, who argue that fiscal rigor is critical. Under the new bill, which requires the Parliament's approval, the cut would be applied from October 1, while its estimated budget impact will stand at some 4.8 billion lei (1.5 billion USD) in 2015, according to the Finance Ministry.
Recent events in the Crimea have deepened the persistent confidence issues into a crisis of confidence, according to the World Bank's recent economic report on Russia. The same report indicated that Investor pessimism became the decisive factor affecting Russia's economic outlook.
However, the World Bank added that global markets had seen little disruption from the growing tension between Ukraine and Russia, and oil markets remained stable. "But such geopolitical and commodity risks could actually play out to the benefit of Russia by pushing oil and gas prices temporarily up.
The recent political turmoil in Bucharest has served as a stark reminder to investors that the region abounds in local political risks. Meanwhile, both the Prime Minister and the President reiterated the country's commitment to reforms. But with European elections in late May and a presidential vote in November, things may not go as planned.
Fully aware of those threats, business leaders, investors and entrepreneurs have been working hard on making their businesses less vulnerable to the ups and downs of political whims.
Surprisingly, Romania's economy has done well.
It saw the fastest growth in two years in the third quarter, boosted by abundant crops, industrial production and export growth. Thus, the gross domestic product increased 4.1 per cent from a year earlier, compared with 1.5 per cent in the second quarter, putting the nine-month GDP growth at 2.7 per cent.
In October, the government, in agreement with the IMF and the European Union, increased Romania's 2013 economic-growth forecast to 2.2 per cent from a previous estimate of 1.9 per cent. The country's trade deficit shrank to 413 million Euro in September, as exports grew faster than imports.
With over 5,000 companies registered and more than three billion Euro invested in Romania, the Greek business community remains strong in spite of the economic difficulties affecting Europe.
Having embarked on a challenge to lead Garanti Bank Romania to new highs in a competitive market and a difficult economic environment, General Manager Ufuk Tandogan relies on the bank's quality, innovative products and services in his bid.
In an exclusive interview with Business Arena, Ufuk Tandogan outlined the main 2013 strategies and potential threats in the market, and emphasized that sectors such as agri-business, energy, tourism, services and infrastructure provided good opportunities for business in the near future.
În urma unor investiții de peste 100 de milioane de euro, Japan Tobacco International (JTI) are în România una dintre cele mai apreciate unități de producție JTI din întreaga lume, percepută în prezent ca un centru de excelență atât pentru calitatea în execuție, cât și pentru eficiența costurilor. În acest context, compania continuă să se extindă, urmând să își mărească forța de vânzări cu încă 50 de persoane, a declarat Gilda Lazăr, Director Corporate Affairs și Comunicare, JTI Romania și Moldova, în cadrul unui interviu acordat "Business Arena".
Subliniind importanța economică a industriei tutunului pentru România, Gilda Lazăr a menționat că principalii trei producători de țigarete din România au contribuit la bugetul general consolidat al statului cu aproximativ 2,75 miliarde de euro în 2011, această sumă reprezentând accize și TVA. Astfel, pentru o dezvoltare normală a afacerilor pe acest segment, reprezentanta JTI a indicat că este nevoie de un mediu de afaceri stabil și predictibil, iar contrabanda ar trebui să scadă în jurul nivelului european de 10% din totalul pitei.
Despite difficult economic conditions, Austrian companies have continued investing in Romania. The total volume of Austrian investments in Romania amounts to 9.4 billion Euro, the number of Austrian-owned companies registered here exceeds 6,000 and they employ some 100,000 people combined. At the same time, the bilateral trade amounts to around three billion Euro.
In this context, representatives of major Austrian-owned companies and banks got together at Business Arena's annual Austria - Romania Business Roundtable Conference and Awards earlier this week. In the presence of Rudolf Lukavsky, Commercial Counselor with the Austrian Embassy, investors, entrepreneurs and bankers discussed the latest developments in business, new opportunities and challenges, and voiced their views on future economic development here.
The event ended with an award ceremony to recognize the outstanding achievements of Austrian-owned companies and banks.
More Greek businesses are expected to come and test the waters in Romania, as they are looking for ways to offset the troubled economic prospects at home. Displaying a largely upbeat tone during Business Arena's recent Greece - Romania Roundtable Conference and Awards 2012, the representatives of the Greek business community agreed that Romania still offered good development opportunities. This annual event was hosted by the Ramada Plaza Hotel and was organized with the support of the Embassy of Greece in Romania and in partnership with Cosmote Romania and Coca Cola Romania. The event ended with an award ceremony to recognize the outstanding achievements of Greek-owned companies and banks. Emphasizing that Greek business people continue to develop their operations in Romania unobstructed by the economic situation at home, Greek Ambassador Georgios Poukamisas told the participants that both Romania and Greece had been called to make great efforts and take difficult decisions towards fiscal consolidation and reforms.
The EBRD is providing 3.7 million Euro mezzanine financing (subordinated debt) to Industrial Mecano, a private Romanian manufacturer and supplier of packaging solutions for consumer goods and industrial purposes, to support the company's development strategy and help create new jobs. Industrial Mecano serves over 350 clients in Romania, including large corporates in the food and beverages sector, the construction materials sector and also retailers.
La sfârsitul lunii mai, compania Novensys a participat la cea de-a saptea editie a târgului "MEFTEC - Piata Tehnologiilor FinanciareȚ din Abu Dhabi, centrul financiar si capitala Emiratelor Arabe Unite. Novensys a participat la eveniment la initiativa ATIC (Asociatia pentru Tehnologia Informatiei si Comunicatii din România), alaturi de alte 10 companii din România. Standul national al României la MEFTEC a fost finantat prin programul de promovare a exporturilor dezvoltat de Ministerul Economiei, Comertului si Mediului de Afaceri.
Noul boutique hotel de lux din Bucuresti, Hotel Epoque, si-a inaugurat restaurantul alaturi de Guy Martin, celebrul chef francez distins cu doua stele Michelin. Implicarea lui Guy Martin in proiectul Bistro Epoque presupune crearea meniurilor si selectarea furnizorilor de materii prime care sa corespunda exigentelor, numirea unui chef rezident format de Guy Martin la Paris care sa implementeze acest meniu, consultanta permanenta privind amenajarea si organizarea restaurantului, precum si vizite frecvente la Epoque pentru revizuirea periodica a meniurilor si supervizarea operatiunilor.
With total investments in excess of nine billion Euro, the Austrian business community hopes the future brings more predictability in legislation and tax regulations in Romania. In the meantime, the participants to the recent Austria - Romania Roundtable Business Conference and Awards 2011 expressed their optimism regarding the prospects of the Romanian economy. At the end of this lively get-together, some of the companies and banks present at the event received awards for their efforts and achievements in this difficult economic context.
Even though the recession and the ensuing difficult market conditions have dampened business expansion plans, Austrian companies are determined to develop their investments in Romania, according to Dr. Michael Schwarzinger, the Austrian Ambassador to Bucharest. In an interview with Business Arena Magazine, the Austrian diplomat, who arrived in Bucharest in October last year, emphasized that Romania had great potential for development in sectors such as R&D, alternative energy, industrial supplies, tourism infrastructure and the automotive supplies industry.
Cererea de aur la nivel mondial a atins anul trecut un record pentru ultimul deceniu: 3.812 tone, in crestere cu 9% fata de 2009, potrivit celui mai recent raport al organizatiei World Gold Council (WGC). Valoarea totala a cererii a fost de 150 de miliarde de dolari, in crestere cu 38% fata de 2009. Diferenta se explica prin cresterea constanta din ultimii ani a pretului aurului. in 2010, pretul mediu al aurului a fost cu 40% mai mare decat in 2008, anul declansarii crizei economice mondiale.
Observand tendinta bancilor de a se concentra mai mult pe relatia pe termen lung cu clientii decat pe profitabilitatea produselor, Steven van Groningen, presedinte si CEO la Raiffeisen Bank Romania, are motive de satisfactie. in ciuda unui an dificil din punct de vedere economic, banca a raportat cresterea profitului net cu 12%, pana la un nivel de 83 de milioane de euro in 2010. Rezultatele pozitive de anul trecut sunt considerate a fi in mare parte rezultatul injumatatirii cheltuielilor cu provizioanele, de la 88 de milioane de euro in 2009 la 48 de milioane de euro in 2010.
Emphasizing the major part that the Greek business community is playing in the Romanian economy, representatives of major Greek companies, banks and business associations agreed to the need of assuming a more prominent contribution to shaping up the local business environment. With nearly 5,000 companies registered here and employing some 22,000 people, Greek investors have so far pumped some four billion Euro into the Romanian economy, according to the Greek Ambassador, Georgios Poukamissas.
As Norwegian investments in Romania stand at around 300 million Euro and last year's bilateral trade amounted to 530 million Euro, the two countries have great potential for closer cooperation, according to Øystein Hovdkinn, the Norwegian Ambassador to Romania. "My embassy will do its utmost to support this potential being better exploited," he said, emphasizing that the maritime industry, an area of special expertise in Norway, has attracted a large part of the Norwegian investments in Romania.
