Press Review - May 23, 2018

05.23.2018 By Oana Gavrila

Vosganian Calls for Halt on Legislation Changes Affecting Business Environment

MP Varujan Vosganian, spokesman for the junior ruling coalition member ALDE, said overhauls and “revolutions” should be avoided in the next period and the business environment should be left to develop on its own.

"I think we should abstain from further velvet revolutions in the economy. I think it's time we considered there is sufficient legislation and leave the business environment to develop itself and only encourage it through specific means, from state aid to start-up programs,” said Vosganian.

He said authorities should lay off from further tax overhauls and ensure predictability.

President Urges Govt To Submit Projects To Use EU Funds

Romanian President Klaus Iohannis on Tuesday urged the Government to submit projects that would use the funds allocated to the country by the European Union, arguing their absorption rate is very low.

Iohannis said that Romania has at its disposal EUR31 billion in European Union funds, out of which EUR23 billion are cohesion funds and EUR8 billion is destined to the agricultural policy. He said that out of the EUR23 billion in structural funds to use between 2014 and 2020, the country used only EUR2.2 billion so far.

The president also asked the Government whether it has enough money left to pay pensions and salaries by the end of the year and urged Cabinet members to explain the situation concerning Pension Pillar II, amid controversies regarding the country’s mandatory private pension system pillar.

Ford Adds Second Vehicle for Romania Assembly Plant in EUR200M Investment

Carmaker Ford said Tuesday it is investing up to EUR200 million and creating an additional 1,500 jobs to manufacture a second vehicle at its assembly plant in  Craiova, southern Romania.

The new vehicle is in addition to the EcoSport small SUV currently built in Craiova, plus Ford’s 1.0‑liter EcoBoost engine. The model and start date for production of the second vehicle will be confirmed closer to launch, Ford said in a statement.

Ford’s overall investment in its Romanian manufacturing operations – including Tuesday's EUR200 million investment announcement – is nearly EUR1.5 billion since acquiring the Craiova facility in 2008. Significant upgrades have recently been made to Craiova’s vehicle operations, with more than 550 robots installed at the facility to further improve efficiency and quality in the paint, trim and chassis, and body shops the company said.

To support the new vehicle, Ford Romania expects to hire approximately 1,500 basic and skilled operators for a third shift to increase the current workforce. This will bring the total workforce to approximately 5,900 employees.