The government earmarked €18 million and parties spent some €4 million for the referendum campaign, although official numbers acknowledged by the Court of Accounts total no more than €650,000. Incomplete legislation makes it impossible for the Court of Accounts to know and state exactly how much money political parties spend on election campaigns.
Calculations made by Business Standard based on market data show an electoral rally costs about €500,000 - transportation and meals for the supporters and organizers, personalized t-shirts and other items, according to Iasi Liberal Deputy Relu Fenechiu. Concert stage rentals, light and sound management, fees for artists performing concerts at the electoral rally cost an additional €20,000.
Winners. The political crisis spurred by the President’s suspension brought more money, and increased competition for higher ratings among the media (about €100,000 from campaigners’ advertising), while advertising companies made another €2 million . Analysts and public relations companies likely earned about €150,000.
Losers. On the other side of the table, certain sectors of the economy are losing money. According to Agrostar President, Stefan Niculae, Romania could lose some €3 billion, all the money the European Union has promised this year for agriculture, structural funds, subsidies and rural development in case the trading bloc decides to trigger the safeguard clause on Romania. “Romania will not receive one euro from the EU this year, because the agendas of lawmakers, government officials and the President were filled with political scandals instead of structural funds, Niculae said. “President Traian Basescu only mentioned the word ‘agriculture’ during the campaign, probably to get more voters.” The stock exchange reports prices for shares falling, according to Intercapital Invest’s Chairman Razvan Pasol. Transactions could have otherwise been larger if it weren’t for the political instability and the referendum, he said, adding that lost traded capital might have amounted to millions. Analysts, however, are optimistic. They say the losses are not relevant, unless the political situation remains unstable after the referendum. Romania did not lose investors, important privatization offers or European funds because the government is still working.
Economists say Romania’s private sector had nothing to lose during the referendum campaign. “Democracy also includes such events. On the other hand, it is true that long-term political instability has its costs and businesspeople start complaining,” according to analyst Daniel Daianu. He told Business Standard that some foreign investors are “surprised” when they see what is happening in Romania, but no one is taking things too “dramatically”.
If the political crisis becomes more severe, the economy will feel that. But I do not expect inflation derailment,” Daianu added. Applied Economy Group Director, Liviu Voinea, thinks, on the other hand, that the short referendum campaign does not allow for a forecast of losses. “Such things happen everywhere. You do not lose foreign investors because of the election campaign. But we have been talking about political instability for about four months already, which means there might be some costs,” but more likely in the public sector, he said. Economic analyst Bogdan Baltazar says Romania did not lose investors following the referendum campaign. “Investors who are in Romania for the first time might have gotten scared, but serious investors, the ones who know the market, are not worried,” he explained.
