Killing business in Romania
It appears the Romanian Government is taking drastically measures against the crisis and is adopting an easy to implement but tough effective local strategy that is called “HEI-RUP” . This strategy is oriented towards quick and empirical action without too much reasoning or any analysis. The “HEI-RUP” is composed of 3 main stages of offensive action: warning / fire / kill, and it takes the enemy – in our case Romanian companies – by surprise.
As a Romanian Businessman, sometimes I read international news and business reports and I am surprised to find out that in some European countries the laws and regulations for business are not changed several times a year and that notifications are provided long before any law or regulation is changed, allowing for companies to plan ahead and consider the impact that changes might have on their budgeting or business plans.
In Romania, the HEY-RUP fiscal policy strategy does not permit for such planning since the main component of this law is the surprise factor. Shortly said, companies are simply faced with several changes and regulations and required to take fast action in order to survive and replan while on march without having time to waste too much thinking and analysys on long time planning or forecasting. This gives Romanian business a major advantage over lazy and slow moving foreign companies, since in Romania you must act fast and take evasive measures in difficult circumstances and this also guarantees the Romanian antrepreneurs and managers a lot of action and tension, keeping them in a full stage stress test mode.
Recently, our new Goverment just added new taxes for small companies. Each company must pay a minimal tax of 500 EUR per year, no matter the income or profit. If in other countries, small businesses are encouraged to form and grow, in Romania it appears the Goverment’s budget is on the brink of collaps if they adopted such drastical measures that is not only distroying any small and new companies that bearly can survive in the harsh conditions of today’s business, but is also driving away potential young entrepreneurs giving them one more reasons to … “go West!”.
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