AHK Romania: Romania urgently needs a government to maintain credibility of public finances

The rapid formation of a government is essential for maintaining Romania's financial credibility and avoiding negative chain effects on the exchange rate, interest rates and inflation, warns the president of AHK Romania, Volker Raffel."Whether or not Romania deserves to join the OECD is a decision of the OECD and I will not comment on this aspect, because I do not know the exact criteria. What is important, however, is that membership in the OECD is not enough to keep Romania on a good path of economic growth. It is a step, an important step, and I believe that everyone in Romania and in the economic community is happy if Romania manages to take it. But it is clear that, in the special situation we find ourselves in, Romania must continue with reforms. Romania has the lowest investment rate, and if credibility is not maintained by the rapid formation of a government - regardless of who it will be, it is not our role to comment - we need a clear signal that the Romanian state's finances maintain their credibility. Otherwise, there is a risk of losing the last investment rating, which would lead to the depreciation of the exchange rate exchange, higher interest rates, higher costs, higher inflation and more serious budgetary problems - all of which are part of a vicious circle that could continue indefinitely. Romania certainly deserves more and, we hope, there is still every chance to get out of the negative scenario described, but it is necessary to make the right decisions", Volker Raffel told a debate on Romania's accession to the OECD organized by the Romanian-German Chamber of Commerce and Industry.He mentioned that another important criterion is the way in which the Romanian state respects its own rules, laws and promises, especially when it comes to payments and the management of European funds."Too often, European funds are paid late, even if the money exists, due to a low and slow administrative capacity. This money very often arrives in the economy with significant delays, which is unacceptable. It is equally unacceptable that the state, as happened in the sector in which I work, benefits from free loans of billions of euros, and this has been happening for six consecutive years. What signal does this behavior send to foreign investors? It is not only about my company, but about many other companies in energy, but also in hospitals, construction, agriculture or the forestry industry - several sectors in which payments are delayed due to poor administration, in addition to other deficiencies in public administration that, unfortunately, we all know. Everything I have said here can be solved, but it must be solved. This is the framework in which we find ourselves: a very specific, which requires urgent improvements. Let us not forget, however, that Romania has overcome many obstacles in recent decades and has traveled an impressive path of growth. I really wish - and I think we all wish - that this evolution continues", Volker Raffel also said.