Job creation costs 100,000 euros each

The creation of a long-term greenfield job in the industry costs more than 100,000 euros, an amount companies will not be able to afford without the support of banks, George Copos, the state minister responsible for co-ordinating activities in the business environment and small and medium-sized enterprise segment, said on Monday. “It is very important to create safe stable jobs, because it is very hard to believe we will continue using unskilled labour,” he said. He added that business people and investors needed to create added value and jobs otherwise very many companies will find themselves unable to withstand competition in 2007 and that in order to support businesses banks needed to cut interest rates. “I suggest banks go for larger volumes and lower margins. Banks should not be paying 7% on deposits while charging 15% on investment credits. The market will make them cut their rates.” He says that “banks are risking nothing” through the high margins they promote. “They are keeping six billion euros with the NBR without investing it in infrastructure.” He added there was still room for investment because a 17-18% leverage for Romania as a percentage of gross domestic product was “very small.” ZF