Videoconference News.ro – ROINVEST – 3rd Edition

Traditional hybrid event, the third edition being organized in the context of the economic crisis and the war in Ukraine, which aims to support investments as a solution for removing the effects of the crisis and for the development of the country.
In times of crisis, large investments are needed in the economy, and the state gives the signal. The government must propose and implement investments that open up business opportunities and limit the economic and social effects of the recent restrictions.
In the same way, private companies should invest in development, but also in production to sell, come up with new business ideas and honor all their orders and debts.
The economy must move forward, the main objectives being the encouragement of production and consumption.
At the event, we propose to discuss the investment plans of the state with its own funds and with European funds, as well as of private companies to support business development and the economy in general.

MACROECONOMIC CONTEXT:
Romania’s Gross Domestic Product recorded a 5.9% increase in 2021 compared to 2020, according to INS.
The Gross Domestic Product per capita expressed in standard purchasing power parity (PPP) in Romania was at the level of 73% of the EU average, higher than in five other EU member states, according to Eurostat statistics for 2021. Romania located close to Portugal which was at 74% of the EU average, Hungary, 76%, and Poland, 77%. According to Eurostat, GDP per capita in Romania was higher than in Latvia, 71% of the EU average, Croatia – 70%, Slovakia – 68%, Greece – 65% and Bulgaria – 55%.
In the state budget for 2022, the Government estimated an economic growth of 4.6%, a deficit of 5.84% of GDP and an average annual inflation of 6.5%.
The World Bank has revised down the estimate regarding the growth of Romania’s economy in 2022 to 1.9%, warning that the risks of a slowdown, related to the war in Ukraine and the evolution of the variants of Covid-19, are high. The financial institution predicts that inflation in Romania will reach a rate of 9.8% this year, after 5.1% in 2021.
According to the INS, the annual inflation rate rose to 13.76% in April 2022 and is expected to remain at high levels until the summer, falling slightly in the second part of the year.

INVESTMENT CONTEXT
The government proposed to intensify public investments in 2022, which are estimated to reach 7.2% of GDP, up from approximately 5% in 2021. The executive approved a package of over 17 billion lei to support the population and companies in crisis, but it is a matter of specific and conjunctural measures, investment support being an antidote to the crisis and a solution for long-term economic growth.
Public investments are expected to have a positive impact on the growth potential of the economy, especially in the conditions of an economic perspective affected by uncertainties generated by geopolitical tensions, the increase in the prices of energy products, blockages in the supply chains, the tightening of financial conditions, etc.
The government has prioritized a series of investment projects, depending on their economic efficiency. The largest remaining investments to be financed would be made in the fields of transport (87%, mainly for railway, metro and road) and health (approx. 7%).
Private companies revised their investment strategies depending on internal economic developments, but also on the international context, investments being an important pillar of development and ensuring business sustainability.

EUROPEAN INVESTMENT CONTEXT:
Within the Cohesion Policy 2021-2027, Romania has been allocated European funds worth 31.35 billion euros, and through the Recovery and Resilience Mechanism it has an allocated budget of 29.2 billion euros for the implementation of the National Recovery and Resilience Plan. Of the 29.2 billion euros, 17 billion are loans, which Romania will have to return.
The implementation of the PNRR implies the realization of reforms and investments in key areas of the economy (infrastructure, education, health, agriculture, environment and energy), which will considerably increase the potential for sustainable growth, supporting the digitization of the economy and the green transition.
20% of the funds allocated to investments in transport, the business environment and mobility, urban regeneration and the valorization of cultural heritage from the National Recovery and Resilience Plan must be spent to include the digital component in the respective projects.
The projects will run until 2026, and the European Commission and the EU Council will approve twice a year, for each state, the settlement of the amounts spent. The last payment request will be sent in August 2026.

DISSCUSIONS TOPICS:

• Programul guvernamental de investiţii în perioada crizei şi post-criză.
• Planul Naţional de Redresare şi Rezilienţă – obiective pentru 2021 şi principalele proiecte până în 2026. Implicarea mediului privat în proiectele din PNRR.
• Investiţiile în infrastructura de transport – baza dezvoltării ţării.
• Digitalizarea serviciilor publice româneşti. Investiţii în proiecte de digitalizare.
• Fondurile de investiţii – soluţie pentru companii şi susţinerea economiei.
• Implicarea diviziilor de investiţii ale băncilor în susţinerea companiilor şi proiectelor publice şi private.
• Investiţiile străine. Ce ar trebui făcut pentru atragerea de noi investiţii străine şi dezvoltarea celor actuale în contextul geopolitic de acum?
• Facilităţi economice şi fiscale pentru investiţii.
• Este nevoie de o strategie guvernamentală de investiţii pe termen lung?