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Dec 20, 2017 18:04 EEST
December 20 (SeeNews) - Romania's political agenda could lead to a weakening of the rule of law and undermine the regulatory framework necessary for a modern economy, the Foreign Investors Council (FIC) said on Wednesday.
There is a significant increase in distrust in public institutions, both from the business environment and citizens, due to the numerous legislative changes that affect the economy and the rule of law in Romania, FIC said in a press release.
The FIC condemns the adoption by the Romanian parliament of a law that exempts most state-owned companies from the rules of corporate governance.
Also, investors feel that there is increased political interference in the work of regulatory authorities, which should be independent and that some legislative proposals call into question the separation of powers and the capacity of the judiciary to ensure compliance with laws and regulations.
"All of the above are breaching fundamental elements and principles for a modern country with a competitive economy that ensures the welfare of its citizens. These decisions, taken without consultation and without proper information to the public and the business environment, will provide further arguments for deepening the mistrust in institutions," FIC said.
Moreover, without corporate governance rules for state owned companies, Romania will not fulfil the criteria for joining the Organisation of Economic Cooperation and Development (OECD), which is one of the government's goals, it added.
Romania's accession to the OECD has been a major objective of Romania's foreign policy since 2004. The country formally applied for accession in April 2004 and November 2012 but its candidacy was not considered.
"Romania's long-term potential, including that of becoming one of the most important EU economies, can be achieved by channelling all energies towards such a major objective and by observing the principles of transparency, stability and predictability," the council concluded.
Romanians have been protesting for seven Sundays in a row against planned changes to the Criminal Code that they see as an attempt to weaken the fight against corruption. People protest against plans by the Social Democrat-led government coalition to appoint Romania's chief prosecutor without the consent of the president.
The Foreign Investors Council's member companies generate around 25% of Romania’s GDP. The FIC's main objective is to promote sustainable economic growth by improving Romania's investment landscape.
(1 euro=4.6276 lei)
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