Romania unfortunately has in the main a reputation in Europe that is not based on fact but on fiction. This was brought home to me this weekend when I was at a reception talking to a new ambassador in Romania who had recently arrived from another European country.
When he was advised that he was going to Romania he immediately thought of all the bad things he had read and indeed the people he had met in the other country from Romania. His family were also not keen on traveling to Romania. When they all arrived here though his whole perception changed and now he is an enthusiastic proponent of Romania.
As a law firm based in Romania we encounter this type of reaction almost on a daily basis. It is true that people outside Romania have a very different view of Romania once they have visited or done business. Fortunately, we are able to dispel some of their misconceptions and the Romanians are now doing it themselves.
At the moment in Romania naturally the main topic of conversation is the run-off for the Presidential elections next Sunday. Who will win? I am not a time traveler and cannot look into the future and therefore cannot say. Whatever happens though, there will be a new feel in the Country. Personally, I believe that there will be an increase in economic activity. For too long Romanian business has been in limbo waiting to see what would happen. Any recovery will be short lived unless it is based on sound economic principles and therefore we can only hope that any new President does not promise too much. At the end of the day it all has to be paid for.
Perhaps the most important thing to continue will be the work of the Anti-Corruption Agency (DNA – Directia Nationala Anticoruptie). The steps taken by the DNA over the last two years/eighteen months have caused a seismic shift in Romanian business and politics as well as in state institutions. It saddens me as a foreigner working in Romania to hear other foreigners complaining about the DNA and how they are preventing business being done. They almost seem to complain that the attempts to punish corruption are wrong. I wonder what message this sends to Romanian business men?
From my perspective and talking to many young Romanians they see the steps taken by the DNA as a positive step. They feel that corruption had taken too big a hold on the economy. Too many fat cats were flaunting their wealth at the expense of the normal worker and man in the street. Unfortunately, many people in Romania are famous for being famous without any real basis. Many Romanian businessmen and women are successful not because of corruption, but despite it.
In our opinion both as a Romanian law firm dealing with foreign investors and as an international law firm advising incoming investors, we can only state that if the cases are proven, then the decisions by the DNA to prosecute are well founded. It is clear also that the effects of the actions of the DNA are being felt not only at the top but at a lower level.
Many civil servants are now doing their jobs according to the law and the Romanian legal procedures. This may mean that projects are delayed but at least it means that they are being processed according to the law. The wheels of the law may grind slower, but they do grind. There can be no question in the future that any permits, authorizations and permissions were not obtained legally. The payments to speed up procedures are ceasing and therefore the business world is progressing. No longer do they think what is in it for me, and then thinking of the client. Now they have to focus on their jobs.
This has the added advantage that if in the future there are any disputes regarding matters upon which a civil servant has had to make a decision, that the rule of law can and will be applied. The procedure set in train by the DNA has only started and it will be interesting to see if the new President allows it to continue with the help of the European Union and other countries.
Romania is a good country to do business and there is much for foreign investors at all levels to do. After 25 years in Romania I still believe that it is a country where one can do business.
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Ponta is a ‘shoe in’, having more money behind his campaign, simple as that. I wish I could be less cynical about this election and the supposed integrity being brought into play by the DNA but the Romanians, much like the Americans, have goldfish memories and the desire for change overrides their common sense. Meet the new boss, same as the old boss. We’re marching toward the homogenisation of Romania, thanks to more ‘culture dissolving’ legislation from the EU and the DNA is a big part of that. Integrity in business is a matter of trust and whilst politicians continue to rape Romanian businesses through draconian legislation, they will always be looking to make a buck the only way they can, through the back door.
Ponta is a ‘shoe in’, having more money behind his campaign, simple as that. I wish I could be less cynical about this election and the supposed integrity being brought into play by the DNA but the Romanians, much like the Americans, have goldfish memories and the desire for change overrides their common sense. Meet the new boss, same as the old boss. We’re marching toward the homogenisation of Romania, thanks to more ‘culture dissolving’ legislation from the EU and the DNA is a big part of that. Integrity in business is a matter of trust and whilst politicians continue to rape Romanian businesses through draconian legislation, they will always be looking to make a buck the only way they can, through the back door.
Dalt, thank you for the comment. I agree with you about integrity. As to what will happen next Sunday I still think that there is everything to play for. Romanians have to embrace democracy and use their vote if they want change. I think however many will stay at home.
Dalt, thank you for the comment. I agree with you about integrity. As to what will happen next Sunday I still think that there is everything to play for. Romanians have to embrace democracy and use their vote if they want change. I think however many will stay at home.