This document analyzes Romania's economic environment and recommends measures to improve it and attract foreign direct investment. It discusses Romania's improving macroeconomic indicators that led to higher credit ratings. The document also outlines the process for setting up companies in Romania and notes challenges like an unstable legislative framework and need for public administration reforms to reduce bureaucracy.
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The romanian business environment
1. Student :Petre George Marian
Group:8101
Coordinator teacher: asist. univ. Mihai Daniel
Frumuşelu
Bucharest 2015
University of Agronomic Sciences and
Veterinary Medicine Bucharest
Faculty of Management, Economic
Engineering in
Agriculture and Rural Development
2. The present paper is an analysis of the
economic environment in Romania, has
faced the issues among the measures that
are recommended to be taken and their
implications for climate improvement
foreign direct investment.
3. In recent years, Romania's macroeconomic
indicators, such as reducing inflation, keeping the
budget deficit at a low level and sustained growth of
gross domestic product, were encouraging.
In recognition of these positive trends, the
international rating agencies Moody's, Standard
and Poor's and Fitch have significantly improved
the country risk rating for Romania.
4. Experience has shown that reform of
Romania's macroeconomic stability can not
be achieved only through effective
implementation of a comprehensive package
of reforms that create a healthy business
environment.
5. In general, to set up a company in Romania,
there is no need of any special permission.
However, in some industries, require a permit
from the competent bodies. General procedure
for setting up a company requires meeting
certain legal procedures: obtaining court
decision, commercial registration, etc.
6. A person who invests in Romania has available a
number of options on how to make investment. This
can choose a limited liability company, corporation,
partnership, and a branch or representative office.
Establishment, operation, dissolution, merger,
division and liquidation of companies are stipulated
in Law no. 31/1990 and the Emergency Ordinance
no. 76/2001 on the simplification of formalities for
registration and authorization to operate, creating a
unified procedure for registration and licensing
companies.
7. A legislative framework is unwieldy and
extremely unstable, in the opinion of
many businessmen, a major source of
uncertainty in business. There are a lot of
laws, government decisions, application
instructions and regulations that generate
confusion because of their ambiguity, the
conflicting provisions contained and
frequent review they suffer.
8. To increase the confusion, three legal systems
(pre-war, socialist and transition period) coexist
with many laws that have never been explicitly
repealed and bureaucrats are invoked when they
obstruct an initiative.
9. According to European Commission
recommendations, public administration in
Romania is still needed sustained efforts to
strengthen governance and institutional quality,
reducing bureaucracy, increasing professionalism
of civil servants, significantly improving the
quality of legislative and for additional efforts to
ensure faster absorption of EU funds, in
particular by strengthening the management and
control systems and improving procurement
procedures.
