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German investors react, too: Fiscal changes obstruct FDI – AHK Romania

3 July 2017

The tax changes announced by the new government are directed “against the business environment” and are “a real danger to the stability and predictability of the economic policies”, say the German investors reunited at the Romanian-German Chamber of Commerce and Industry, AHK Romania.

The new provisions will make Romania “unattractive” for future foreign direct investments (FDI), funds without which the economy will not grow.

“AHK Romania has repeatedly stressed out that predictability, stability, transparency and the rule of law are particularly important in order to plan for new investments and for economic activities to be successful. And not just the German companies need legislative stability and a stable economic environment to further invest and create jobs”, it is shown in the institution’s press release.

The AHK officials say that the proposed tax model is harmful for Romania and disfavours all companies, whether national or multinational, leading to the loss of attractiveness of the investment site for German companies. The announced measures will have direct negative effects not only on companies, but also on Romania’s population. In the medium term, these measures could lead to job and investment cuts, which will bring other negative consequences, for example the qualified workforce exodus, a trend from which Romania is already suffering.

“To make a difference between Romanian and foreign companies or multinational companies is, in the opinion of AHK Romania, an error and is not for the benefit of anyone. The German companies are an integral part of the Romanian economy. They are also well integrated into national, regional, local systems and make a decisive contribution to the gross added value, but also by increasing competitiveness by transferring know-how. ”

These companies invest heavily in employee training, in research and development, often in collaboration with national research institutions, but also in the technology development of the company.

About 7.500 German companies, respectively with German capital, are active in Romania. They are thus an important employer who in recent years has made a decisive contribution to creating and securing jobs in Romania.

As an active actor in the business community and a trusted partner for the Romanian ministries and authorities, AHK Romania contributes at improving and developing business and investment conditions in Romania, as well as strengthening bilateral trade relations. Germany is, through comercial trade, over 26 billion euros (over 20% of Romania’s foreign trade), Romania’s most important commercial and economic partner.

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