Businessman Dinu Patriciu says the crisis can be countered by reducing and optimising taxation, slashing budgetary and personnel expenses and by attracting private capital in the development of infrastructure. "Cutting VAT to 15%, in line with EU recommendations, or incentives for an early meeting of fiscal obligations are other ways to lessen the crisis fallout, but I'm insisting on public works financed through private resources (...)," Patriciu also said. He maintains bringing the flat tax to 10% is a key element of competitiveness in attracting foreign investments. "Should fiscal policy be efficient enough, relocations from Western Europe will have Romania as a destination. The government has to create the general background, and the private segment has to give money confidence, a thing Romania's businesspeople are well aware of because they have been living in a crisis for 20 years," Patriciu also said. Rompetrol's CEO also said bankruptcies would rise in the following period, particularly on the SMEs segment. "Constructions and real estate investments will be the hardest hit, but at the same time any failure means a return to health. Next year's unemployed people will go to infrastructure". As regards Rompetrol, Patriciu said the restructuring process had almost been finished, but still did not expect a productivity gain next year.
