Business Review

Austria ranks top of the foreign investors to Romania with over EUR 10 billion invested so far. EUR 500 million was spent last year and the same amount is estimated to be reached in 2010 too. Beyond facts and figures, Austrian companies have become deeply involved in the local economy, filling top positions in more than just banking and the energy industry. And the Teutonic march shows no signs of abating

Simona Bazavan

The furniture market continues to be affected by the crisis and will not come through it unless the real estate market recovers, say top players in the field. The lean times have created a new brand of customer, more quality-oriented and price-conscious than ever before. The pieces of furniture being sold right now have to last over a lifetime and be passed on to future generations, they must no longer be easily replaceable goods, suited to passing trends. Business Review talked to several players on the market to see how they are coping with the tough times and their hopes for future development.

Corina Dumitrescu

SUV sales on the local market are far from being at full throttle as they were a few years ago. Market specialists say sales dropped by half in the first seven months of this year compared with the same period of last year. However, those SUVs priced more modestly haven’t lost their allure. More, the Duster model has made waves on the local market, but even more so abroad where it makes up some 90 percent of the Mioveni factory’s production.

Dana Ciuraru

The new competition law has brought about some long-awaited clarifications, but has increased the value of fines, a killer measure as companies struggle to emerge safely from the crisis, say lawyers.

Dana Ciuraru

Any beer lover knows that a hot summer’s day and a cool beer go together like a horse and carriage. Summer is also that time of the year when brewers throw big money at promoting their brands and it is typically money well spent as these are the months when beer companies register their largest sales.

Simona Bazavan

Improving tax administration and keeping a close eye on inefficiencies in public spending are the best solutions for the Romanian government in its current economic plight, advises Catalin Pauna, senior economist at the World Bank Romania country office. He adds, “the World Bank is not in Romania to finance deficits.”

Dana Ciuraru

The new public-private partnerships law elucidates the concept and brings new clarifications regarding the project company, while at the same time leaving undefined aspects like the evaluation criteria, sanctions, warranties and the minimum obligations for private investors interested in entering a PPP.

Dana Ciuraru

This autumn, Business Review is setting up four more events from the Country Focus series, which will comprise of the Austrian, French, Turkish and Russian meetings. So far, our 2010 Country Focus business breakfasts have brought an attendance of 70 participants per session, 70 percent of whom came from middle and top management positions, from various backgrounds.

The Romanian authorities should offer investors a mid- to long-term economic recovery and development strategy, which would establish priority sectors for investments in the future, Anca Harasim, executive director of the American Chamber of Commerce in Romania (AmCham Romania), told Business Review.

Simona Bazavan

Total American investments to Romania are estimated to reach USD 10 billion, including those made by the European subsidiaries of US companies. Last year alone American capitalized companies invested approximately USD 0.5 billion in the country, according to Blair LaBarge, economic counselor with the United States Embassy to Bucharest.

Simona Bazavan