ARB: Romanian employee's productivity is 15,000 euros/year, three times less than European average

About 540,000 small companies existing now in Romania place us last in Europe, reported to 1,000 inhabitants, while the productivity of an employee is three times smaller than the European average and amounts to 15,000 euros per year, said Florin Danescu, the executive president of the Romanian Banks' Association (ARB) at a press conference, on Tuesday.   “In point of quantity, we say we have 540,000 companies and then we find out that small companies, reported to the number of inhabitants, place us last in Europe, while in Czechia there are three times more small companies per 1,000 inhabitants. Therefore, in point of quantity we do not have a good position, we do not have enough entrepreneurs, although this is the main engine of Romanian economy. Why? Because it makes 56% of VAT for GDP, and only 76% of the job volume. In point of structure, we have a deficit, since 35% of small companies have a negative capital, that is they have losses. This is a negative conclusion about the structure and quality of this economic engine,”Danescu explained.   According to him, the productivity of an employee in Romania is 14,500-15,000 euros per year, below the European average of 47,000 euros.   “Which is the productivity of an employee in a small company in Romania for a year? About 14,500 -15,000 euros, compared to 47,000 euros the European average. In conclusion, we have bad positions in point of quality, quantity and structure. On this structure we bring very challenging principles, very difficult to reach and we impose this structure, which apparently comes from the banking system, on Romanian companies next to money laundering prevention needs, demands regarding customers, which place a negative prospect on the banking system. These are in fact state externalizations anywhere in the world and especially in Europe, through regulations by which banks are used as risk prevention instruments. That means that a partnership is set up between banks and states, from the perspective in which states use banks as instruments not liked in elections,” said the ARB leader.   In the financial-banking field, the main argument, as professional ethic is “one should speak only about his profession.”   “In conclusion, while we believe today in the banking systems and in the Romanian banking system, the banking industry in Romania, and we will back them, these ESG and Green Deal principles should be taken into account. Our interest is not to add the people's negative perception about banks, which will ask a lot of things and which are in fact, state, government , legal obligations. My message is that we should all believe in these principles,”said Florin Danescu.   BankingNews and GreenCommunity organized on Tuesday the event “Green Financing Forum”.