Business Review

In spite of an economic crisis whose impact on the Romanian economy has lately seemed to be intensifying, British investors are continuing to strengthen their presence in Romania, capitalizing on the remaining local competitive advantages. Meanwhile Romanian companies are turning their attention to export opportunities to the UK, Anne-Marie Martin, CEO of the British Romanian Chamber of Commerce (BRCC), told Business Review.

Simona Bazavan

With UK investments in Romania amounting to EUR 4 billion, British businesspeople are among the most long-standing foreign direct investors in the country. More than 4,000 British companies are active in Romania, with the number of newly registered companies falling in the last two years from 859 in 2007 to 353 in 2008 and only 165 last year, according to data from the National Trade Register Office (ONRC).

Simona Bazavan

As the economic and political crisis deepens in Romania, the local labor force is shaking in its boots. The unemployment level of 8.07 percent in April is expected to increase after the recent announcement of drastic public spending cuts. Market specialists say that the Labor Code must be extensively revised in order to offer greater flexibility to employers for dismissal procedures and short-term appointments.

Dana Ciuraru

B. Braun Medical has to recover, mostly from the Romanian state, outstanding debts of some 80 percent of last year’s turnover, which reached EUR 12.3 million. Martin Wenderoth, managing director of the company, told Business Review that despite this situation, the German company plans to invest EUR 6 million in the next two years, to expand production and to make Romania a hub for South East Europe. Moreover, Christian Braun, CEO of B. Braun Central and Eastern Europe and member of the founding family, added that his plans are for Romania to reach the average European turnover, meaning EUR 100 million.

Dana Ciuraru

Company representatives attending the Spanish Business Forum organized by Business Review pointed fingers at the local authorities for not taking enough action to solve some of the national business environment’s already deep-rooted problems.

Simona Bazavan

Real estate and construction haven’t had their best year in Romania and Spanish firms working in these areas have felt the strain of the economic downturn more keenly than anyone else. But while some have delayed projects, others have turned their attention to new industries like renewable energy and are even planning future investments.

Simona Bazavan

Last week’s unprecedented airspace closure led to a real blockage in Europe, generating considerable losses for already beleaguered airlines. Blue Air officials told Business Review that the volcano fallout had seen the airline lose EUR 2.5 million. But while in the sky profits turned to ash, on the ground transportation companies and hotels saw their takings erupt. Eurolines Romania for instance told BR that its revenues had more than doubled during the lockdown.

Dana Ciuraru

Smuggling and tax evasion are two of the less obvious consequences of the current economic situation. The Romanian authorities have announced that the cigarette black market alone deprives the state budget of EUR 1 billion in revenues, while tobacco firms complain that their profits are going up in smoke.

Dana Ciuraru

Although cautious about future economic predictions, company representatives attending the Greek Business Forum, organized by Business Review, expressed their confidence that Romania would continue to further attract Greek investments.

Simona Bazavan

Greek investors continue to find Romania to their liking despite the current economic crisis, with Greek investments in Romania exceeding EUR 4 billion so far. Although 2009 was a tough year for the world economy and perhaps harder still for the Greek economy in particular, over 200 new Greek companies were registered in Romania, according to Ioannis Paschalis, minister counselor for economic and commercial affairs with the Embassy of Greece in Romania.

Simona Bazavan