In the execution of the 2017 state budget, observing the deficit target was the main goal, to the detriment of the investments, which reached a 12-year low as share of the GDP. Public investments amounted to just 67.7% of the level planned at the beginning of 2017. At the same time, the absorption of European funds and investments based on such financial resources have been significantly under the targets, AmCham said.
The organization considers the implementation of the investment plan is a priority in the execution of the state budget in 2018, and can be supported by increasing public investments, discarding the pro-cyclical policy, as observing a public deficit target of 3% of the GDP in times of rapid economic growth reduces the possibility to boost the economy in times of recession.
Other measures proposed by AmCham are consistent efforts to significantly increase the level of EU funds absorption, stability and predictability in fiscal policy, incentivizing productivity growth and the share of economic activities with high added value, avoiding the increase of the risk margin and of the costs for financing the economy, prioritizing public investments based on their impact in the economy, and ensuring transparency and predictability of the major public investment objectives through a multiannual planning of the public consolidated budget, in order to build confidence in the investment climate.
AmCham Romania (the American Chamber of Commerce in Romania) represents over 430 American, multinational, and Romanian companies.