FIC: Investments planned for 2021 are an all-time high, can serve as catalyst to relaunch economy

The investments planned for this year, amounting to 61.4 billion lei, represent an all-time high and can act as a catalyst for the relaunch of economic growth, said the representatives of the Foreign Investors Council (FIC), which welcomes the adoption of the budget by Parliament. FIC considers that the budget reflects a balanced vision that favors Romania's economic recovery. "We consider that the central elements of the construction of the current budget are well outlined by the realistic estimation of future revenues and the framing of the general consolidated budget deficit (of 7.16 percent) within the acceptable limits at EU level. All this can ensure the successful implementation of the measures in the governing coalition program, such as the stability of the level of taxation, the reduction of administrative expenses in the coming years, further fiscal consolidation and the orientation towards large investment projects," FIC said in a release today. According to the cited source, the allocation of 5.5 percent of GDP for investment shows a rethinking of the priorities in the future. "The investments scheduled for this year reach an all-time high, amounting to 61.4 billion lei, and can play a catalyst role in relaunching economic growth. In addition, the budget provides for a substantial allocation for the state contribution to European-funded investment projects (co-financing at 2.9 percent of GDP), being a good indicator for a greater absorption of funds and sending a positive signal to the business environment, which is still reeling from the impact of the health crisis," the FIC release further reads. Also, the representatives of the Foreign Investors Council consider that the current budgetary challenges can be solved through a series of measures the implementation of which does not require an additional financial effort, as long as the necessary political will is in place. "We refer mainly to the potential for revenue growth by improving the tax collection system and the digitization of the National Tax Administration Agency, but especially by creating and implementing a vision for Romania to attract high value-added investments, which can play an important role in stimulating sustainable economic development. The implementation of structural reforms will help maintain the budgetary balance, particularly if adjustments are made in relation to the administrative expenditures and in conjunction with the launch of public and private investment projects. This can ensure overcoming the current context and Romania's success in the medium and long term," add the FIC representatives. In their opinion, foreign direct investment can make a significant contribution to the economic recovery and therefore they reiterate the need to outline legislative measures and institutional structures dedicated to attracting foreign investment, considering this a priority for the next period. From this point of view, FIC pledges to remain an active partner of dialogue, ready to support the authorities in such endeavors, the release concludes. The Foreign Investors Council brings together the most important investors with foreign capital in Romania, specifically over 120 of the largest companies in the country with a cumulative turnover that accounts for a fifth of the economy and have a significant contribution to the state budget. AGERPRES (RO - author: Mariana Nica, editor: Andreea Marinescu; EN - editor: Simona Klodnischi)