FIC: Authorities did nothing to attract foreign investmentsUpdated: 18-09-2009 |

The evolution of the foreign capital flow during 2006-2008 is due to the favourable conjecture related to the accession to the European Union, the Foreign Investors Council (FIC) considers.

According to FIC Executive Director Doina Ciomag, authorities did nothing in order for Romania to attract foreign investments, Mediafax reports. "The phrasing is devoid of content. The rulers, Romania's population did nothing to draw investors in. Romania was helped by a conjecture related to the prospect of the accession to the European Union, the effective integration in the European structures and the positive evolution of macroeconomic indices," Ciomag told a press conference. The FIC official mentioned that macroeconomic indices made Romania attractive to foreign investors, without an effort per se.

"The signal given by investors is that Romania must devise a strategy and long-time measures, concrete niche measures in order to become attractive," the foreign investors' representative added. According to Doina Ciomag, the financial resources available to investors have dwindled from last years' levels, which make it critical to draw foreign investments in, especially in a country that has such a big budget deficit as Romania.

"Apart from daily management at a time of crisis, the Government must also have someone to deal with perspectives. It must identify niches, as the agriculture, energy, and infrastructure are fields where resources and efforts should be concentrated, even if this will hurt, because resources must be reduced for other sectors," Ciomag explained. According to the FIC director, the competition over attracting foreign investments switched focus at global level, and Romania now competes against countries from the region - like Russia and Ukraine - and also from Asia. She emphasized the need for infrastructure investments, so that current projects are not endangered.

FIC: Authorities did nothing to attract foreign investments

"Ford and Renault will soon have problems, because they produce, export and need access ways," Ciomag pointed out. According to estimations made by the Romanian Agency for Foreign Investments (ARIS), foreign investments this year will reach EUR 4.5 bln, i.e. half the 2009 forecast made by the institution at the beginning of the year.

In 2009, ARIS received 22 intents for new investment projects, worth a total EUR 1.55 bln, which would create 6,300 new jobs. The economic sectors targeted by these investments are energy, real estate, machine building for the power industry, packaging and car parts. During January-July 2009, foreign direct investments totaled EUR 3.097 bln, 48 pc less than EUR 5.948 bln a year ago, according to data provided by the Central Bank. The Foreign Investors Council represents over 100 multinational companies, which account for 60 pc of foreign investments in Romania.

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