Business Review

What should the state do when the economic crisis has left its coffers bare? Introducing new taxes and duties is the response of the Romanian authorities. Big Four specialists have analyzed for Business Review the likely outcomes of introducing new taxes such as those mooted for property, wealth and micro-enterprises. They also put forward their own solutions for how to revive the Romanian economy.

 Dana Ciuraru

The painful learning process of insolvency did not spare Romanian companies last year, after hitting big international names. Although Romania has not had its own version of the Lehman Brothers collapse, some local firms teetered on the brink of bankruptcy, and were either obliged to or decided themselves to apply for insolvency to try to put their affairs in order.

The luxury industry has been feeling the strain this year, and does not expect 2010 to be any brighter. Segments such as the hotel and car industries, jewelry and watches have plummeted. These are counteracted by a good performance and expected development of the spa market, with some new entrances possible. Business Review takes a detailed look at the luxury market this year and its prospect for future development.

By Otilia Haraga

With a significant drop in the number of transactions, the local M&A market seems to be frozen by the downturn. But specialists expect 2010 to remain auspicious for acquisitions since many businesses with good potential are going through a rough financial period or need more capital to develop.

By Dana Ciuraru, Anda Dragan, Otilia Haraga, Corina Saceanu

 

Public auctions, strong dealer networks and specialized websites are the ways through which leasing companies are trying to sell the thousands of cars repossessed this year because their buyers couldn’t afford the repayments once the recession hit. But the method is failing to get the desired results: even a EUR 6,200 Ssangyong Rexton put up for auction recently has yet to find a new owner. 
By Dana Ciuraru 

With its apparently great potential for growth, Romania attracted USD 13.3 billion in foreign direct investments last year. But 2009 is a different kettle of fish. Specialists expect this year's FDI to be worth just half the value posted last year.
By Staff

Financing conditions have changed dramatically for real estate projects in Romania, while the syndicated financing and club deals for real estate projects have disappeared from the market, said Mihai Dudoiu, managing associate at law firm Tuca, Zbarcea & Asociatii.

Ten malls are fighting for Bucharest shoppers' time, attention and, most important of all, money. In this battle they are making changes to the mix of brands, partnering retailers to offer unique promotions, and rolling out marketing campaigns boasting concerts and all sorts of events which might attract the crowds.
By Corina Saceanu

French companies in Romania have brought competitiveness to the country, and the expertise built up by these players is far more valuable than the profit they have made, said Alexandra Gatej, adviser in the presidential administration, who attended the French Business Forum last week.

Real estate, construction, consumption and banking haven't had their best year in Romania, and French firms working in these areas have taken various measures to keep up with developments on a market in a downturn. But while some have delayed investment plans, others have in fact started new projects in sectors like energy. It was also a good time for companies working in outsourcing and auditing to consolidate their business and gain some market share. Business Review looks at how 2009 has been for the main French investors in Romania.
By Corina Saceanu