The draft law on investment stimulation, which the Government passed in a first hearing last Wednesday, stipulates incentives both for Romanian and foreign investors that operate in the processing, energy and telecommunications industries.
“This law on investments has as a long-term goal to maintain a solid growth rate for foreign and Romanian investments. We are boosting investments on a non-discriminatory base, therefore the legislative document does not refer just to foreign investments,” Romanian prime minister Calin Popescu Tariceanu stated last week during the government session. The law drafted by the Economy and Finance Ministry will be passed through an emergency ordinance next week.
The Association of Businessmen in Romania (AOAR) supports this goal of the law of not discriminating between foreign and Romanian investors. “Once we join the EU, we are all equal. We’ve come to a point in Romania where we also have domestic investments, and not just foreign direct investments. Domestic investors have to be equally encouraged,” stated Florin Pogonaru, AOAR chairman.
Incentives are aimed at those investing in the following fields: processing industry, electricity, gas, hot water and air conditioning, water distribution, sanitation, waste management, decontamination activities, the telecom and IT services industry, professional, scientific and technical activities, administrative and support services.
Incentives come in the form of some state aid schemes drawn up based on some specific criteria. The law stipulates that each ministry is to draw up state aid schemes within 60 days after the law comes into effect. At the same time, investments destined to weakly developed areas, to regions with a high unemployment rates, investments in infrastructure, investments in research and development, professional training and investments with a positive impact over the environment are supported.
An important part of the law refers to the setting up of the Romanian Agency for Investments (ARI), through the reorganisation of the current Romanian Agency for Foreign Investments (ARIS).
Cristian Parvan, general secretary with AOAR, states this decision on the creation of ARI will not benefit Romanian investors. “The emergency ordinance the Government approved in a first phase last week is in fact an umbrella law enumerating some principles, but the structure is unchanged. The same centralised procedures are maintained, which, in my opinion, are hampering activities. (…) The Government appointed the ARI as an authority, but a decentralised framework with operators across Romania would have been much more efficient,” said the AOAR official.
The normative document was initially devised as a draft law, but it will be promoted as an emergency ordinance to more rapidly meet expectations in a business environment.
Investment stimulation
The draft law on investment stimulation, which the Government adopted in a first hearing last Wednesday, stipulates incentives both for Romanian and foreign investors operating in the processing, energy or telecommunications industries
The law drafted by the Economy and Finance Ministry will be passed through an emergency ordinance next week
Incentives come in the form of some state aid schemes drawn up based on specific criteria