On Friday, PM Emil Boc spoke at hte signing of the contracts within hte first appeal for 2010 EU funds based projects designed for investments in large companies. In his speech, he congratulated those who made this possible today - Minister Videanu, together with his team and those who have submitted projects and who qualified to the final phase to obtain EU funds. He contiued his speech by saying "For us, drawing European funds is extremely important. I say this in a context of an economic recession yet hoping this year to get out of it.

There are two main ways we can help Romania to overcome this difficult situation. First, and foremost, now, at this time of crisis is public investment in infrastructure and funds from the European Union. These public funds - whether from the budget, or from the European Union - can help the Romanian economy until the private sector is recovering from recession to resume work orders as before 2009. Each EUR brought in the country and spent is important, because it helps directly at getting out of recession.

I do not hide the fact that, at this time, the Romanian Government, Ministers of Economy, Finance and Labor have no more important concern than to back business and jobs for Romanians. It is our top priority to which we work every day.

In this respect, we have already taken a set of measures to support business and jobs. And I can only refer to some of these measures: 16% flat tax, 19% VAT, tax exempt for reinvested profit, the decisions of Finance on VAT reimbursement, electronic and automatic reimbursement for those with returns of up to 100 billion ROL and exporters. I would also refer to the ordinances aimed at backing companies hiring unemployed, the exemption from social security contributions for 6 months, or to the emergency ordinance to assist local authorities who do not have financial resources to co-finance projects and may use state guarantees subsidies to receive this part of co-financing to European projects.

I would mention also the important projects we have started or we have continued. It is the "First House" program or the "car scrap" program as elements to back the economy, and ultimately, the business environment, the "Ten houses for specialists" project or sale of ANL homes and construction of other 22,000 ANL dwellings within the program that we have at the Ministry of Regional Development are among the decisions we have made lately.

As you can see, there is an encouraging connection. BNR reference interest decreased from 10 to 7. Interest rates are no longer between 20 to 30% on the market, but somewhere between 9% and 13%. Euro – RON rate is stable. Yesterday, Standard & Poor's upgraded Romania's country rating. Observance of international agreements created us a different image internationally, as reliable partner that honors the given word.

There are things that can help overcome the economic recession. Obviously, as any body that comes from illness, convalescence lasts. Therefore, it is important what the state makes at this moment in order to back public investment and the process of attracting European funds.

I congratulate you that you were punctual and have submitted the necessary documentation. I understand that there are some companies that must complete documentation. My appeal to those companies is straightforward: to submit necessary documents immediately so that the money can be used as soon as possible in the Romanian economy.

Next, we are working on projects to support business environment. Youth, we are preparing a project aimed at supporting those who set up a business, by providing support and facilities. Also, we are working on cutting bureaucracy as we know the burdens with Romanian bureaucracy and especially with the fiscal one. And here I mean the two elements that we required for analysis in order to back the business environment.

We asked the Ministry of Finance to consider the possibility that, when a company pays a debt to the state, the mechanism of compensating payable with collectible VAT may function. A mechanism for the companies that must collect from the state or an entity of the state and, at the same time, have to pay VAT or other contributions to the state. Thus, you will not be forced to go into insolvency or bankruptcy proceedings because you have not received the related financial resource, although you had to pay the state and the state was in debt at the same time. One way of compensation in order to resolve the deadlocks.

We will allow the payment of the principal, not of the accessory when you pay a debt to the fiscal authority. The current practice is that one has a debt and pays the penalties first, and the debt principal goes on and produces penalties, which leads to the insolvency. We now give the possibility that when one goes to pay a debt, there is no obligation to cut only the debt from penalties, but the principal, because that is continuing to produce penalties, leading to insolvency or bankruptcy. And thus, we help companies to not enter bankruptcy or insolvency proceedings. So, firstly, the payment of principal and not accessory. It is a more technical question, but I hope our step was understood.

And last but not least, we know that you are facing tax bureaucracy in matters of fiscal statements that have to submit every month. According to my data, there are more than 24 fiscal statements that must be submitted in one form or another to pay various contributions. We created a working group to consider at this time the simplification of the number of fiscal statements. We hope we can give in the following period, good news in this respect: that those statements were reduced by a process of computerization and better organization inside the ANAF, the Ministry of Finance, Ministry of Labor, Ministry of Economy, which coordinate these activities.
There are only some of the proposals to which we are working at the moment and which we will decide in the next period.

PM Emil Boc concluded by wishing everyone success.

Source; Government of the Romania