Romanian Business Leaders and Budget Correction | Financial Week




The Romanian Business Leaders (RBL) is an apolitical, non-governmental and nonprofit organization that provides a platform for action and social involvement for entrepreneurs and business leaders in the private business environment. RBL projects are initiated and developed on a voluntary basis by the top 200 RBL members, top entrepreneurs and executives in Romania.

Representatives of the Romanian Business Leaders say in a statement released by Agerpres that the budget allocations oversupplied to consumption by raising pensions, economically increasing wages in the public sector, special pensions or unjustified special incomes neither economic nor ethical are made at an economic moment toxic, as consumption is just exhausting its growth potential and has already entered the spiral of deep trade imbalances.

Romanian Business Leaders believe that the September 2018 budget adjustment “puts Romanian economy and society on the last phase of the growth paradigm based on consumption of products from other countries”, but we pay with borrowed money. In parallel, the potential Gross Domestic Product (GDP) is compromised by the historical investment limitation.

“Budget rectification postpones digitization and modernization of the administration. RBL believes that postponement is not due to lack of financial resources: the stakes seem to be the preservation of the lack of transparency – that is, the environment conducive to corruption, the taxpayer’s assurance and his subordination to the administrative-political authority. Budgetary restraints over the past two years – including the current rectification – ignore Romania’s real capacity to repatriate some of the emigrated labor force, “the quoted document said.

The RBL points out that the global trend is to recover GDP growth to real potential, and, as budgets are made according to excessively optimistic forecasts, the first sacrificed will be investment, which preserves the degree of underdevelopment.

“Today, investments are at a lower level even in the crisis years – the budget execution shows that their level, as a share of GDP, does not reach even 1% in the first seven months of the year. In order to avoid a major slippage, RBL entrepreneurs and managers urge the Government to urgently prioritize investment in transport, education, health and digital public administration infrastructure, eliminate special pensions, increase retirement age for occupational occupations, and strengthen the contributory pensions (Pillar II and III), complementary to the public system, and take urgent measures to stop emigration, “the RBL communiqué said.

RBL also asks the Executive to spend “the head” on the money they collect from Romanians and companies that produce value in Romania.

“Our entrepreneurs, managers and employees want the money they pay to the state through taxes and fees to be used with discretion, transparency and in a way that is responsible for the government, city halls and county councils, and thus contribute to the development in the long run of local communities and Romania. We appeal to the Government, rational political entities and social partners in the form of an alarm signal on an imminent bill for Romania: the budget rectification decreases by 41.5 million euros for the transport infrastructure – a key element in development; the business environment with stoicism suffers the profound disadvantages of lack of infrastructure, but this can not last forever without compromising competitiveness in the long run; big investments are overshadowing Romania because of the infrastructure, and the situation can reach an irreversible point: the neighboring states, with a lower potential than Romania, will be decisive in the regional competition “, the source quoted.


According to RBL, it is profoundly unhealthy and toxic that, in the private sector, earnings grow only on the basis of productivity gains, while in the public domain they increase arbitrarily by simple political decision. The organization draws attention to the near moment when the private environment will no longer be able to support discretionary revenue growth decisions in the public area or in the social projection area, while pointing out that in the past three years the difference between state salaries and from private triple, a state employee earning 60% more than one from private.

“Stimulating profound inequities in society’s income distorts working relationships between different sectors of society, with long-term effects in both general mentality and employee-employer relationships, and even relationships within the same field of work; it is profoundly unhealthy and toxic that, in the private sector, revenues grow only on the basis of productivity gains, while in the non-business field they grow arbitrarily by simple political decision; The RBL points out that we are approaching the moment when the private environment will no longer be able to endorse discretionary revenue growth decisions in the public area or the social protection area. Official statistics show that the salary gap between the state and the private sector has tripled over the past three years, with a state employee earning 60% more than a private employee, “the source quoted.

RBL also mentions that the education system is making important steps back, and the business environment has already come to the point where human capital is more difficult to obtain than financial capital.