What businesspeople want from the new government

Romanians are called to the polls on November 30 to choose their representatives in Parliament. Based on the election results, the next Prime Minister will be nominated and a new government appointed. Currently, the main candidates for the position of Prime Minister are the current government head, Calin Popescu Tariceanu, leader of the ruling Liberal Party (PNL), Theodor Stolojan, a leading member of the Democratic-Liberal Party (PD-L), and ex- Foreign Affairs Minister Mircea Geoana, who is leading the main opposition party, the Social Democrats (PSD).

All parties have come up with governing programs aimed at improving Romania’s economic environment and providing better living standards for the country’s citizens. Meanwhile, during Business Standard’s Private Government project, some 150 businesspeople, both Romanian and expats, top managers of local companies, consultants and repre-sentatives of the academic environment had their say about measures that should be taken by the authorities to narrow the gap between Romania and developed states. Their suggestions include: speeding up procedures for major public infrastructure projects, so that these can absorb part of the work force that is likely to be laid off due to the financial crisis; building some 1,000 kilometers of highways in the coming four years; a private health insurance system; stimulating the flow of investments, in spite of the current standby due to the crisis, through an appropriate set of fiscal measures; significantly lowering the number of government agencies and of employees in public institutions.

The flat tax was one of the most debated issues during the Private Government project. Some businesspeople, including Dinu Patriciu, one of the contry’s wealthiest people, as well as consultants of the Big Four firms, say the tax should be lowered from the current 16 percent, arguing that this is the only way to help Romania recover ground lost to other countries in the region. They indicated that this measure should be followed by other fiscal measures, to avoid a wider budget deficit. On the other hand, some businesspeople say that the flat tax should be 19 percent. However, most representatives of the business community believe the flat tax should be maintained at the current level. The flat tax and sets of fiscal measures to narrow the deficit are also included in political party programs. Furthermore, all three candidates for the PM position have promised to raise salaries and pensions, to grant more funds for education and healthcare, and to support infrastructure projects.

The most recent poll shows that the Social Democrats, who are running together with the Conservative Party (PC), rank first in terms of voter popularity, at 35 percent, followed by the Liberal-Democrats (32 percent) and the Liberals (21 percent).

‘There are many government institutions and agencies with impressive salary budgets, in fact, money spent on people who do nothing Marius Bostan Senior Partner, VMB Partners