“It is very important for us to have a stable government that supports Romania’s interests. The most serious issue is this volatility which prevents us from knowing what will happen in three to six months. On the other hand, the 16 percent level of the flat tax has been very important for investments in the past, and maintaining this is in Romania’s best interest,” Solomon told Business Standard. In the midst of the global crisis, Vodafone has three scenarios, and its strategy for the coming fiscal year will be set so that the company can increase the level of investments, in case of a positive evolution. In a negative scenario, the company will adjust capital flow and maintain a balance between turnover and costs. “Next year, if we are not registering double-digit growth, efficiency and cost control will be our main concerns. However, we are operating in an industry which permanently requires investments. In 2009, most company heads will consider must-have and nice-to-have investments,” Vodafone’s CEO added.
According to Solomon, the crisis will lead to a drop in prices for certain services that recently registered rapid growth, due to better negotiation capacities between clients and suppliers. “I believe that marketing budgets will somehow reflect that Romania[’s economy] is no longer growing by 9 percent, and there will be a price negotiation. It will be interesting to me to see what happens, because the marketing budget is a variable cost that can be adjusted,” she added. (M.F.)
