BRCC’s statement regarding the latest events
Almost two years ago the British Romanian Chamber of Commerce drew attention to the adverse effect on the business and investment climate in Romania of a proposal to introduce contentious legislation through a Government Emergency Ordinance, with little consultation or notice. The adverse reaction of the stock market following the publication of a draft Government Emergency Ordinance on fiscal matters on 18 December 2018 unfortunately suggests that this experience has not been sufficiently remembered.
As emphasised on the previous occasion, the BRCC is not a political organisation but exists to promote “commercial, industrial, tourist, financial investment and cultural relations between” the UK and Romania. Although the BRCC is happy to pass on to governments the views of its members on business issues, levels of taxation in Romania are matters for the Romanian government and parliament and are a cost of doing business in Romania.
To allow adequate and proper plans to be made, businesses and investors however need stability and a sensible degree of consultation on and notice of proposed changes, particularly if those changes are contentious or novel. The reaction of the stock market to the announcement of these proposed fiscal changes, made through a proposed Government Emergency Ordinance published shortly before the winter holiday period and less than two weeks before it is due to enter into force, speaks for itself.
Such action unfortunately makes it much harder for businesses to operate in Romania and also makes it much harder to argue a convincing case for investment in Romania as a country with expected levels of legislative stability and transparency.