Concordia: Structural measures in reform packages are essential steps towards an efficient public administration

  The structural measures in the reform packages, from de-burocratisation and fiscal efficiency, up to digitilisation of the administration and optimization of the state-run companies represent essential steps towards an efficient public administration and will have to offer quality services to the citizens, shows a press release of the Concordia Employers’ Confederation.'The Employers' Confederation Concordia welcomes the reforming direction proposed by the legislative and administrative measures introduced in the following packages announced by Prime Minister Ilie Bolojan. The targeted structural measures - from de-bureaucratization and tax efficiency, to digitalization of the administration and optimization of state-owned companies - are essential steps towards an efficient public administration that will have to provide quality services to citizens. Firm implementation of these expenditure-cutting measures is essential for budgetary sustainability. These reforms provide the basis for a healthy public administration in which the private sector can contribute to economic recovery in a fair framework. At the same time, we hope that the implementation of these measures can ensure that the tax increases will be temporary, which will encourage local and international investors to continue their development plans in Romania', the employers' organizations argue.   'The Concordia Employers' Confederation welcomes the reforming direction proposed by the legislative and administrative measures introduced in the following packages announced by Prime Minister Ilie Bolojan. The structural measures - from de-bureaucratization and tax streamlining to digitalization of the administration and optimization of state-owned companies - are essential steps towards an efficient public administration that will have to provide quality services to citizens. The firm implementation of these expenditure-cutting measures is essential for budgetary sustainability. These reforms provide the basis for a healthy public administration, where the private sector can contribute to economic recovery in a fair framework. We also hope that the implementation of these measures can ensure that tax increases are temporary, which will encourage local and international investors to continue their development plans in Romania’.   Premier Ilie Bolojan announced on Friday the measures package which is going to be promoted. The government includes the reform of the commercial companies where the state is a majority actor, to be established the reduction of the number of members in the leading structures and capping benefits at reasonable levels.According to Bolojan it is necessary to reduce the losses or to close down the companies which accumulate losses of several years.'To this end, we will propose to amend the legislation, so that the number of companies that are currently managed by this AMEPIP agency, which should have come up with some very good indicators and therefore no longer be a reward for being a director, but a challenge, should no longer manage 1,400 companies, about as many as it says it manages, that it cannot manage, to be clear, and their number should be reduced to those relevant for the Romanian economy, which in any case cannot exceed 200', he said. 'Every year the Romanian state subsidizes these companies with billions of lei. CFR Calatori has 80% of its total turnover from subsidies and only 20% from its own revenues. In Europe, for example, the subsidy threshold is on average between 30% and 60%. In Great Britain all trains operate without subsidies, while in Romania private companies that are subsidized according to criteria similar to those of the National Railway Transport Company “C.F.R. Calatori”make a profit, and we are in a situation where with 80% subsidy we are barely at zero', said Ilie Bolojan.'