The Chamber of Commerce and Industry of Romania (CCIR) draws attention to the budget in the context of the problems recently raised by the authorities themselves: 20 billion lei. The concern is that when budget problems arise, new taxes rise or appear, driving away investors.

dutiesPhoto: Virojt Changyencham | Dreamstime.com

“The CCIR is concerned about the budgetary situation presented by the Ministry of Finance, a context in which Romania risks losing the most important advantages it has: predictability and low taxation,” the institution said in a statement.

In this context, the CCIR reiterates the urgent need for the administrative reorganization of Romania by reducing the number of counties from 42 to 15, redefining the concept of a commune as an area with at least 5,000 inhabitants, as well as redefining the concept of a city as a settlement with a population of at least 10,000. At the same time, all decentralized state institutions should be regrouped under this new administrative form.

Under the current circumstances, says the Chamber, Romania is no longer an attractive destination for foreign investors in terms of skilled labor and because of chaotic retrocessions.

“Therefore, Romania may not be able to offer land for the opening of production lines, especially in the context where many companies have started moving from Asia. Romania’s only mid- and long-term attractiveness may remain low taxation backed by predictability,” the quoted source said.

  • In this difficult situation, according to the CCIR, there is a risk that, by taking the wrong measures to cover budget holes, the business environment will become, if not the scapegoat, then at least a collateral victim.

This approach of the National Chamber, which is absolutely necessary for the urgent territorial reorganization of Romania, has been joined by several employers’ organizations and associations, such as: the Romanian Association of Flour Milling, Baking and Flour Industry Employers (ROMPAN), the employers’ Federation of the Romanian Building Materials Industry (PATROMAT), the League Associations of Agricultural Producers of Romania (LAPAR), the National Association of Travel Agencies of Romania (ANAT), the Federation of Romanian Transport Operators (FORT), the National Interprofessional Organization of Viticulture (ONIV) and the Association of Brokers from Romania.

How Romania was divided since 1918

The idea of ​​partitioning Romania is often put forward, but no serious steps have been taken.

In 1918, the administrative and territorial structure of the United Provinces was as follows:

  • Transylvania was divided into 25 counties and communes (small, large and cities with a council), divided into administrative circles
  • Bukovyna was organized into 11 captaincies without the status of a legal entity headed by district captains
  • In Bessarabia, the administrative divisions were gubernias (provinces), uyezds (counties) and volosts (communes). 8 districts of Bessarabia were divided into districts (networks) that united several communes.
  • The Old Kingdom of Romania was divided into 37 counties (33 according to the Law on the Establishment of County Councils dated April 2/14, 1864

After the Second World War, Romania entered the sphere of Soviet influence, which had a strong impact on political, economic, social and cultural life. Of course, in terms of administrative-territorial division, a model alien to Romanian traditions and realities was imposed on our country. According to Law No. 5 of 1950 on the administrative and economic division of the territory of the Romanian People’s Republic, the territory of the country was divided into regions, cities, districts and communes.

28 administrative and economic districts were created, territorially demarcated with direct subordination to the central authorities, which were supposed to carry out the policy of the single party and government. Oblasts included districts and cities of oblast subordination. The seat of the People’s Council of the region was also the regional center. 177 districts with an average area of ​​1342.7 km2 were formed. An administrative-economic district with an average estimated area of ​​8,535 km2 had an average number of 6.3 districts.

After 1968, we had 39 districts.

See more in the text: Territorial reorganizations of Romania since 1918

Photo source: Dreamstime.com

Read also:

Klaus Iohannis and Cachiu blame ANAF for budget problems, but a public document from the Ministry of Finance explains what happened

The Ministry of Finance made a mistake in the 2023 budget. Reduces costs and gives fairness to the Fiscal Board

Romania’s economy is slowing down / Companies are paying less and less to the budget / Internal documents of the Government

What did ANAF do when it saw that some taxpayers were having problems paying their taxes