New Year, New Government, New Hopes
January is almost over and our new Government has spent these first few weeks being rather proactive. There have been some new policies implemented, discussed and debated already, but from a foreign investor perspective, we wait in hope to see the results filter through to business stimulation.
Politics in Romania, as I have said before, has a tremendous impact on whether or not investors choose to deploy money into the country and now that we have a majority government in place for the next four years, the sentiment from the financial markets seems to be positive.
The next major step is to see the Ministries implement change. Previous Governments in recent times seem to have had changes at the top but the management remained with fixed ideologies and ideas and no proactive leadership. However we are hearing rumors that this is changing with the new government.
While anti-corruption is still a hot topic, the question on the minds of most investors dealing with State institutions is, “will the continuing fight against corruption continue to impede growth”? In the recent past, one of the major factors that stopped decision making was the fear of the public service to make decisions based on what could happen to the individuals if they made a decision that could be interpreted by the next policy makers as wrong. Would they get caught up in a political witch hunt? Therefore, the easiest solution was to make no decision at all!
Hopefully this will now change and we will see the new Government make a proactive attempt at stimulating business, forge new relationships with the business community that will enable growth, create jobs and FDI in sectors that have suffered over that past few years due to inaction and eradicate indecision from the State institutions. It is important for these institutions to understand that they need to be a part of the solution rather than being the cause of the problem.
So we await to see the changes that have been promised form into policy over the next few months and hope that a top down approach of the new Ministers is implemented to allow the changes to take effect.
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