Saturday, 28 June 2008

Romania not doing as well as it could

Cezar Coraci, chairman of the General Union of Romania's Industrialists UGIR 1903, says the lack of a skilled workforce, the high indirect costs of business and the instability of the fiscal system are the main problems industrial companies have to face.

Coraci believes the Romanian economy could be even more competitive in the EU if it bet on the development of some sectors such as the agro-food industry, the chemical and petrochemical industry, the car industry, constructions, IT, furniture production and consumer goods.

"These are sectors that are well rooted in Romania where there are raw materials, technology and a market demand," explains Coraci, adding there is a lack of some clearly defined objectives for each sector and strategic decisions for industrial development.

Statistical data shows industry workforce productivity rose by 8.7% in the first quarter of the year against the same period in 2007. However, the chairman of the UGIR 1903 says the trend of productivity needs to be correlated with industry wages since in March, the net average wage in industry reached 1,089 RON, up 13% compared with the same period of last year. If wages rise faster than productivity, there is a problem for Romania!

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