RSS
At least EUR 2bn the costs related to the political crisis calculated by Council for SMEs
The impact of political instability could reach EUR 2 billion by the end of the year, driven by higher interests and higher borrowing costs for the state, as well as by rising costs for imported products, said Florin Jianu, representative of the National Business Council for Small and Medium Size Private Enterprises (CNIPMMR) and former Minister for Business Environment (the first minister who resigned after emergency ordinance 13 was issued).
“Our calculations were based considering the increase of interests and the borrowing costs for the state, the higher costs for imported products – they will lead to an overall cost of EUR 2 billion by the end of the year. For example, the quarterly imports amount to about EUR 20.8 billion and, if we consider the differences in exchange rate from RON 4.55 to RON 4.59 per EUR, there’s a difference of EUR 20 million,” Florin Jianu said on Monday, according to ziare.com.
The European funds were not considered, although the governing programme included that EUR 4.6 billion were to be attracted.
“More than 80% of these will not be taken. We don’t have the precise numbers regarding agriculture, but the funds are on decrease. We are at midyear and the management authorities have not been accredited, no contracts have been signed,” he added.
CNIPMMR Honorary President Ovidiu Nicolescu has stressed that the loss comes not only because the money hasn’t been collected, but from the fact that the state budget will not collect the taxes coming from collecting such funds.
Jianu added that the economic instability coming from the recent political tensions has led to effects to be seen in several months.
The changes in the exchange rate will lead to price increases for imported products, instability of contracts concluded by entrepreneurs, higher burden for loans in EUR, higher costs for the state in terms of loans, lower state investments. Overall, the national currency depreciation could lead to lower consumption and to lower revenues from direct taxes or to an increase in costs of living. Jianu also said that the recent non-confidence vote has as consequence delays in decisions to be applied for the business environment and negatively influence the business environment, mainly for SMEs.