Managers feel Romania won't be ready for EU

Most top managers in Romania feel the country will not be economically ready to join the European Union, at least until a later date.

A poll conducted by EurActiv, a European policies portal headquartered in Brussels and titled “100 top executives on accession effects” shows that only 57% of those canvassed see accession taking place in 2007, while one third believe 2009 is the most likely date.

However, 80% of the respondents stated they did not believe Romania would be economically ready to join at any of the two dates, but much later.

An overwhelming majority of top executives, 90%, say the main problem hindering Romania’s acceptance into the EU is corruption, with the excessive red tape and problems with the judiciary also contributing.

“We are realistic, nobody expects radical changes to happen overnight, but there has to be a logical, lasting process; you cannot improve political performance without fighting corruption convincingly and efficiently; the business climate cannot be improved without reducing red tape and improving policy making,” said Jonathan Scheele, head of the European Commission Delegation in Bucharest.

The poll also revealed varying opinions on how costs will increase as a result of accession. Half of the top executives say human resources costs will significantly increase, while 43% estimate higher taxes, duties and other budgetary contribution-related costs. Respondents also mentioned production, administrative and investment costs.

The most significant accession benefit is given as an increase in foreign investment. “The most important positive effects of accession will be the increase in foreign investment, the development of new technologies and new opportunities on a single market. The communications, information technology, financial sector and trade will develop,” suggested Silviu Hotaran, Microsoft Romania general manager.

Indeed, most of the top managers interviewed believe the finance-banking sector, as well as services and tourism will see a spectacular development following accession, while half of them see agriculture and heavy industry affected.

Alexandru Dobrescu, KLM Romania manager, says it is better to operate in an environment where competition principles and rules are clear, in comparison with the current environment “where free competition principles are infringed by ordinances whose purpose usually is to create exceptions, favouring the promotion of certain non-competitive products or organisations.”

As for the “negative effects,” it is the harsh competition of the new market that is most alarming to managers.
miruna.lebedencu@zf.ro