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Business Environment and Business Company in Romania in the Current Financial Conditions

Petru Popescu

No 4, Economics of Sustainable Development.The Economic Impact of Climate Change. - Working papers from Ecological University of Bucharest, Department of Economics

Abstract: In the present article I propose to address some of the possible evolutions of business environment and business company with consideration of the current international economic situation, the financial problems of the euro area economy and restrictive financial conditions in Romania. We were looking for an answer to some situations that are in contrast to our country to assess how the Romanian economy and companies will face new economic and financial challenges to maintain and achieve sustainable performance. The analysis started from the existing economic and financial conditions but also some conflicting objectives expressed often in terms of decision-makers. According to estimates the Romanian economy will grow 2.5% next year 2- in parallel with an advance of foreign investments, 0.5-0.75 percentage point decrease key interest rate, inflation will be around 1 , 2 to 1.5% and the budget deficit will be below 2%. Finance companies will continue to rely on the resources of shareholders and because of this growth rate will slow afcerilor large companies based international companies present in our country and not their own SMEs should be the engine of the Romanian economy. Contradictions raised by me and I tried to give an answer and an evaluation are mainly the following: banks have sufficient liquidity but they are not used to grant new loans and real investment stimulation; capital market should take great mars the role of financier evolutions of the economy but are not optimistic category; unemployment is decreasing but the average income stands at a modest level compared with developed countries in Europe and the world; to cover the pension fund deficit is growing, we are borrowing to cover budget deficit relative cheap external debt but does not decrease as expected. We have opportunities to create new jobs in infrastructure, agriculture, telecommunications, etc., but not capitalize from some reason. There are only a few examples that we must seriously ask ahead and see if the educational system in Romania, which have reformed the ground, not the solution to all these problems and more. I say this because the economic and financial strategies issued to date have not given the expected results in Romania, a country with all the possibilities available but inefficient use of resources. Sounds bizarre but I think education and research sector in Romania are those that can really bring real solutions to real financial and economic conditions in Romania.

Keywords: economic and financial strategies; financial policies; business and finance company; the role of research and education system in solving the fundamental economic and financial problems (search for similar items in EconPapers)
JEL-codes: E61 G11 G15 G38 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2015-11
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Published in Economics of Sustainable Development - Economics of Sustainable Development.The Economic Impact of Climate Change., ISBN: 978-606-652-100-0, June 2016, pages 30-39

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