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Iohannis: Romania will continue sustained economic growth, well above the EU average this year
Romania will continue its sustained economic growth well above the European Union average this year, President Klaus Iohannis said on Wednesday in a message to the 31st edition of the Ranking of Romania's Privately-owned Companies hosted by the Romanian Athenaeum and presented by presidential advisor Cosmin Marinescu.
"Let me congratulate the National Council of Small and Medium-Sized Privately-owned Enterprises and all entrepreneurs in Romania, whose results we enjoy every year on this event. Your work and performances are extremely important to our economic development. Amidst the uncertainties of recent years, your efforts have been all the more relevant and deserve to be appreciated and supported. You have contributed significantly to the post-pandemic recovery, through your sustained involvement."
Iohannis added that the current geopolitical reality is marked by a new armed conflict in the Middle East overlapping the ongoing one in Romania's neighbourhood, noting that "this way the risks to the economy, already weakened by multiple crises, get bigger."
"This context induces increased probabilities that global economic dynamics will slow down even more, and recessionary symptoms will worsen budgetary and social problems, with increased risks in terms of sustainability."
According to the President, "Romania will continue its sustained economic growth, far above the European Union average this year."
"Financially, after inflation levelled out in August, the disinflationary trend continues by lowering inflation below 9% starting in September. I am aware of the concerns of the entrepreneurial community, especially since many small and medium-sized entrepreneurs are worried about the burden of inflation."
He mentioned that he knows that "the recently adopted fiscal measures were not exactly well received by the business community."
"However, I trust that the government will take into account the necessary regulations, where they are required, and will adopt measures that will keep Romania competitive in fiscal terms, in order to continue to attract productive investment to the benefit of our economy. Consolidation of public finances, tax compliance and improved collection of revenues to the national budget, the performance of the administrative apparatus and the efficiency of public services are essential conditions of a modern, European-type state, as we want the Romanian state to be," added Iohannis.
He told the entrepreneurs that there is a need for financial stability and budgetary consolidation.
"My message to you is to continue to build together with responsibility. We need financial stability and budgetary consolidation, not only through the prism of Romania's commitments to European forums, but as healthy and sustainable policies required by the shortcomings and the accumulated budget imbalances of the past. We must all be realistic that the multiple crises have accentuated the structural vulnerabilities of the budget and our economy. At these times, the limits of an economic policy model focused rather on consumption instead of investment, more short-term than long-term oriented can be seen more clearly."
Iohannis also said that Romania is in the midst of implementing the reforms and investments included in the National Recovery and Resilience Plan (PNRR), and many of the long-postponed measures have now become imperatively necessary.
"The reforms and investment under PNRR will lead to a more efficient administration, closer to the taxpayer, and to important progress in areas such as transport infrastructure, the energy system, education, healthcare and good governance. That is why the absorption of European funds is an essential national objective, because European funds have a key role in supporting Romania's economic growth. We already have the experience of two programming periods and enough potential still untapped in competitive sectors such as agri-business, IT&C, the petrochemical industry and tourism."
He also mentioned that he noticed, however, a decrease in the number of small and medium-sized entrepreneurs who intend to access structural funds, showing that European funds should be seen as the cheapest source of business funding.
"The government, together with the local administrations, should take all the necessary steps to facilitate the absorption of the European funds available to the business community. And you, the SME leaders, should continuously urge entrepreneurs towards the programmes with European funds, in the interest of small and medium-sized businesses in Romania," added Iohannis.
In his message, Iohannis also mentioned the problem of professional qualifications, noting that the government and the entrepreneurial community can together identify measures to prepare and attract qualified human resources and that it is essential to intensify the dialogue between the parties and support the return of Romanians to Romania.
