Structural funds could save the construction sector

More than 42 percent of Romanian companies focused their activities on trade in 2007, while 36 percent concentrated on services. Only 12.3 percent and 9.4 percent, respectively, were operating in industry and construction.

A total of 499,857 companies were active in the Romanian economy in 2007, of which 211,537 worked in the field of commerce, 179,932 in services, 61,463 in industry, and 46,925 in the construction sector.

Of the more than 4.3 million employees, 39.6 percent activated in industry, 26.1 percent in services, 22.6 percent in commerce, and 11.7 percent in the construction sector.

The economic fields registered a total gross profit worth RON 43.54 billion (€13 bln) in 2007, of which companies in the industrial field posted a RON 18.7 bln (€4.98 bln) gross profit, firms in the trade sector RON 12.1 bln (€3.22 bln), service operators RON 7.63 bln (€2.03 bln) and constructors RON 5.07 bln (€1.35 bln).

However, the situation has changed in the past few months. The international financial crisis is affecting Romania, and particularly the construction sector.

“Like other economic fields, the construction sector is affected by banks which have blocked financing. As long as financing is blocked, we will face great difficulties: bankruptcies, suspended projects, layoffs. And these will continue in 2009. A solution to the problem in the construction sector could be structural funds,” Adriana Iftime, General Manager of the Association of Construction Employers (PSC).