EBRD: Tax Administration And Corruption, The Biggest Business Environment Obstacles In Romania
Tax administration, corruption and political instability are the top three business environment obstacles identified by Romanian firms, according to a survey by the European Bank for Reconstruction and Development (EBRD) and the World Bank.
Tax administration emerged as the most severe obstacle encountered by companies in Romania, according to company managers interviewed for the survey.
An estimated 18% of senior management’s time was spent on dealing with tax regulations, a 6 percentage point increase, compared to the level reported in the previous survey, and above the south-eastern Europe (SEE) average of 14.3%. Untaxed, undeclared activity amounts to more than 28% of national output, putting Romania second only to Bulgaria in the EU for the size of the shadow economy as a proportion of GDP. Romania nevertheless made some progress: it reduced the tax payment frequency from quarterly to twice a year and introduced an electronic system for filing and paying taxes. (Puterea)
EC Grants Romania EUR8.5M Aid Following 2014 Flooding
European Commission announced Thursday it has granted aid worth EUR8.5 million to Romania following the severe flooding in 2014.
The aid aims to help cover part of the emergency costs incurred in the recovery operations following the flooding. It will particularly help restore vital infrastructure and services, reimburse the cost of emergency and rescue actions and cover some of the clean-up costs in the disaster-stricken regions, EC said in a statement.
In May 2014, Romania was affected by wide-spread flooding which damaged transport, water, energy, and communication infrastructures, homes and agricultural holdings. This flooding affected 30 of the 42 Romanian counties, triggering the evacuation of local residents and causing major losses in different economic sectors. Many farmers suffered crop loss on cultivated land and drowning of livestock, while forestry access roads were destroyed by breaking dams. Many schools, hospitals and other public buildings as well as cultural assets were flooded, EC said. (Puterea)
Romania Mulls EUR9.3B Investments Through National Rural Development Program
Romania plans to invest over EUR9.3 billion through the National Rural Development Program (PNDR) 2014-2020, out of which over EUR8 billion will come from the EU and the rest is granted by the state.
Agriculture Minister Daniel Constantin launched, two weeks ago, the first investment measures of the National Rural Development Program 2014 – 2020, saying he hopes the beneficiaries would be able to submit financing requests at the end of May or the beginning of June. Farmers will get non-reimbursable funds worth EUR205.7 million for upgrading farms while EUR111.2 million will go to young farmers. (Adevarul)
MPs Immunity Could Be Removed Only By Amending The Constitution
The removing of parliamentary immunity, mentioned by the chief prosecutor of the National Anticorruption Department (DNA), Laura Codruta Kovesi, could only be possible by amending the Constitution. The immunity of ministers and former minister is even harder to remove, as the Constitutional Court should change its jurisprudence.
DNA chief prosecutor, Codruta Kovesi, stated Thursday that parliamentary immunity should be removed completely, saying that it is not normal for a political vote to replace justice. At the same time, she criticized the MPs for protecting their colleagues against the prosecutors’ requests.
”A common citizen committing the same corruption deed can be arrested at any time. A MP can commit any corruption deed as the Parliament will protect him and will not vote for preventive detention. This is preferential enforcing of the law,“ Kovesi said. (Adevarul)
Physicians In Rural Areas Complain About Incentive Cut
Medical doctors in rural areas complain that their incentives have been cut and warn that they would be forced to close down their offices.
Physicians said that, in the Danube Delta zone, where doctors are given the highest bonuses, there are only three doctors left of the initial five.
Paul Serban, head of the Association of Family Physicians in Rural Areas, says that the new regulations of Order no. 391/187/2015 of Health Ministry and of head of National Health Insurance House (CNAS), discourage family physicians in rural areas to continue their activity or young doctors to open a medical office in rural areas. Medical offices are owned by local councils and family physicians have to pay rents or taxes for these spaces, Serban said. (Evenimentul Zilei)