FIC: fiscal policies, poor infrastructure put off foreign investors

Romania's fiscal policies and poor infrastructure and bureaucracy are making the country uncompetitive, the foreign investors' council in Romania, FIC, said on Friday.

The massive investments anticipated by policy makers will fail to materialise unless trust is rebuilt, FIC said in a statement accompanying its annual business sentiment index survey.

A total of 53 of FIC's 122 members responded in the survey.

Some 38% of the survey respondents said that the local business environment has significantly worsened recently, while 42.3% think it has deteriorated slightly. Only 7.7% see a significant improvement recently in the local business environment.

Some 14% expect their revenues to contract in 2018, up from 11.2% in March 2017.

Foreign direct investment (FDI) into Romania decreased by 3.3% year-on-year in the first two months of 2018, to 794 million euro ($978 million), latest data from the central bank, BNR, showed.

FIC member companies represent a significant share of foreign direct investment in Romania. They have more than 200,000 employees and a total turnover that is equivalent to about a quarter of the country's GDP.

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