Romania is at a critical point, from an economic point of view, with the highest levels of twin deficits in recent history, and the situation of the country's economy should be the priority of the authorities in the coming period, is the opinion of the Council of Foreign Investors (FIC).
"From an economic point of view, Romania is at a critical point, recording the highest levels of twin deficits in recent history, with the exception of times of crisis. The economic situation of the country must be the priority of the authorities in the coming period. The organization considers that it is the need for balanced measures to ensure a sustainable economic recovery, which will be reflected in the well-being of society. In the coming years there will be even more need for the private sector to continue investing in order to maintain the growth rate of the Romanian economy from previous years, especially since public sector investments will be restricted as a result of the need to reduce the budget deficit," the investors said in a press release sent to AGERPRES on Friday.
In this sense, FIC emphasizes that for the choice of the investment destination, but also for the continuation of the investments present in the country, the companies need a firm, long-term commitment from the authorities in ensuring a stable and predictable climate.
FIC also maintains that membership in NATO, the EU, accession to the Schengen area and the OECD remain key elements in Romania's relationship with investors. According to the most recent analysis of the Council of Foreign Investors on the fees and taxes paid by FIC member companies and their employees in Romania, in 2023, the investments of FIC companies were 17 billion lei, representing 43% of public capital expenditures according to the execution of the consolidated budget for 2023.
The contributions of the 110 FIC member companies to the general consolidated budget was estimated at 82 billion RON, which represents over 18% of the current revenues collected by the state last year. The total number of employees of FIC members exceeds 190,000 people. The employees of the analyzed FIC companies earned an average net salary of 8,655 RON per month, 89% more than the average net salary in the economy of 4,584 RON, the Council claims.
According to the cited source, the foreign investments attracted contributed significantly to the modernization of the national economy and its integration both in the European economy and in the international export and production chains; they brought technology and know-how to the domestic market, thus contributing to the development of companies with domestic capital, to increasing productivity and to corporate governance through which they promoted the importance of fairness, transparency and responsibility in companies; they contributed directly to the economic growth recorded by Romania through the investments made available and through the salaries paid directly to employees and indirectly through the local supply chain.
The evolution of the stock of foreign investments as a percentage of GDP started from an almost non-existent value in 1990 and increased significantly in the following decades. An essential element in attracting foreign investments is Romania's accession to international structures. Both the accession to NATO and later to the EU were events that boosted the growth of FDI in the states of Central and Eastern Europe.
"The years of accession to international structures are by far the years that brought a strong investment boost in Romania. The private sector (made up of foreign investors, entrepreneurs and households) is the main contributor to Romania's development, the average ratio between investments in Romania and GDP being of 23.7% in the last decade, above the EU average," according to FIC.
The Council of Foreign Investors (FIC) is the association that brings together the most important investors with foreign capital in Romania, approximately 110 of the largest companies in the country with a cumulative turnover that represents approximately one fifth of the gross domestic product and that have a significant contribution to the state budget. In the more than 25 years since the establishment of the organization, FIC member companies have always supported the importance of dialogue between the business community and the authorities.
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