The National Council of Private Small and Medium-Sized Enterprises in Romania (CNIPMMR) said that the Code of Good Practice supports the interests of Romanian producers. “This law is one of the best anti-crisis measures that the Boc [Prime Minister] government has taken,” said Ovidiu Nicolescu, CNIPMMR’s President.
The Code prohibits the sale of products below costs, a measure applied by a series of producers until they drove competitors off the market, after which they raised prices, Nicolescu indicated. The new law sets precise and tighter deadlines for the payment of suppliers. “Local producers are financing large retail chains, which no longer need to borrow from banks, and it is Romanian enterprises that are taking out loans,” the CNIPMMR official said. This piece of legislation could result in a 20 percent decline in foodstuff imports in one-two years, considering that Romania’s foodstuff imports amount to €6 billion annually.
Traders said that applying this Code would lead to higher prices, because it would distort the competitive climate. Moreover, local producers would gradually disappear from the stores, and their products would be replaced by imports. Furthermore, such restrictive legislation would bring an end to foreign direct investment made by retailers in Romania.
