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Chiritoiu: Legislation changes recommended by OECD could save 434 million euros per year
Legislation changes recommended by the Organisation for Economic Co-operation and Development (OECD) could save 434 million euros per year, the equivalent to 0.27 per cent of Romania's gross domestic product, Competition Council (CC) President Bogdan Chiritoiu asserted on Tuesday.
The OECD, CC and Romanian government analysed the impact of current legislation on three key sectors of Romania's economy, and on Tuesday they presented their conclusions in a conference. The project resulted in 152 specific recommendations concerning the processing of agri-food products, land and sea freight transportation, and constructions - especially building materials and calls for tenders in civil engineering organised on competition bases.
OECD's recommendations were included in the government's National Reform Programme, said Chiritoiu; he promised that the CC will provide the necessary support for quick effects in the economy.
According to the OECD, specifications for public procurement will result in more bids, which will cut the procurement costs and save an estimated 418 million euros per year. Legislation should eliminate the price caps for sand and gravel to stimulate competition among suppliers.
Transparency and a dedicated payment system for the local road taxes would alleviate the administrative work of truck drivers and prevent corruption. Better designed requirements for getting copies of the transport licenses would simplify the tasks for Romanian road transport operators. These steps will produce annual incomes estimated at 7.1 million euros.
Market competition for port services - especially vessel towing and piloting - and procedures for the relevant calls for tenders would also improve competition, generating savings of 6.5 million euros per year, the OECD says. The organisation also recommends the approval and monitoring of all port taxes by an independent regulation mechanism; this would increase the efficiency of the operation of Constanta and other Romanian ports.
Barriers should be lifted as regards the minimum 10 square metres required for selling bread in small shops; it would allow new business opportunities for shop owners.
The collaboration among the OECD, CC and Romanian government on this project began in 2015; the target sectors were selected following consultations with the International Monetary Fund, the European Commission and the World Bank.