When we see a new client, we are often asked, as are all Romanian lawyers and advisers, tell us about Romania. When I started this blog that was the position that I came from.
During the last few months we have seen an increase of inquiries coming from abroad from people new to the market. Inevitably they ask this question. Where does one start? I explain that I have been here for many years and have seen the Romanian economy and business community increase and expand. As an English lawyer in a Romanian law Firm, I see only part of the business community. I see English, French and German and potential Greek clients because the law Firm in Romania has contacts in those countries. But there are still many more potential foreign investors out there.
We are asked questions on the legal climate – rule of law and enforceability of judgements as well as business practices. The answers which we give are truthful and honest and we try and tell it how it is. Not only the good but also the bad.
Let us not be naïve, there are some bad things in the Romanian business community which we could do without. Corruption – there is corruption and we should not deny it. Myself I have never paid any “spaga” or other payment in business. No need to! If you pay it then you are on a slippery slope, and what is more you can never sue for your fees, because someone will have something over you. Has it prevented us doing business – not that I am aware of. Maybe some things have taken more time but the problem has been resolved in the end.
I am also surprised at how little these potential foreign investors really know about Romania and its history. The country where they intend to do business. If you do not know the history how can you do business. Romanian history has moulded the people and their business attitudes. For over forty years the country was ruled in a socialist way. That means that the people now in power were educated and brought up in a socialist / communist society. We cannot expect them to change their views and attitudes overnight or indeed over two generations. In my view it will be at least another thirty years before the majority of business leaders who were trained in a “western” way, are in position of influence. When I look back and see how far Romania has come and how far she has to go, I am pleased to note that she is on the same type of progression as Poland, Hungary and other countries. No better – no worse.
Romania is a good place to do business and will continue to be. She will go two steps forward and one step back. That is normal and usual. Is Romania a place to do business, yes it is. Should you do business here, yes you should. Will you make money, yes you will.