Mrs. FURDUI, you run a leader company in the financial and accounting consultants industry in Romania for more than 15 years, highly reputed in the market, and internationally known. How did you manage to grow the business in a country which joined the EU in 2007, and what are the major differences that you’ve noticed before and after the integration of the country?

Like with the other countries in the recent past, Romania joining the EU in 2007 has provided the local economy with an increased opportunity: not only the local businesses have increased their turnovers by accessing EU funds and also EU clients but also the international EU players could now access the local market without any further barriers. This was a challenge to the financial services that needed to adapt to this rapidly changing business environment. We at FiNEXPERT we have addressed this issue by implementing several measures: training people to work using international standards, offering to our clients consultancy for accessing the European funds and state aid fund.

Not least for FiNEXPERT joining the EU meant collaboration with consultancy firms around the world which meant exchange of experience, an important element in development of our business.

Now, after almost 11 years since Romania has joined the EU, how do you feel the market and which are the aspects that significantly impact the local business environment?

One could say that 11 years of EU membership has overhauled the Romanian economy. All industries have benefited from an increased demand and also access to EU funds and know how. Harmonization of the local legislation with the EU one has generated a clearer and more equal ground for all players. The industry, commerce, real estate and IT & C are probably among the largest beneficiaries among all sectors. However, the still inadequate transportation infrastructure is hindering an even more faster development of the economy. Significant developments have occurred in many ways but, with a few notable exceptions, the local capital is still fragile in comparison to the international one, the investments market with the stock exchange being one of the lowest capitalized in the region.

From your experience and from the perspective of a senior professional in the finance and accounting industry, what should a Romanian or foreign company investing in Romania look at in terms of finance consultancy ?

Setting up a business in Romania is quite straightforward, with a streamlined process of incorporation of almost all types of legal entities being available in the local legislation. Professional advice is available to highest standards, provided both by local and international financial consultants that have offices in Romania.

There are though a few competitive advantage that any investor should look at when investing in Romania, depending on the sector of activity:

1. Taxation environment that can be consider one of the least burdensome in Europe- 16% flat tax; tax exemption for R&D; tax exemption on salaries derived from IT and R&D activities; tax exemption from reinvested profit, etc;
2. Availability of state / EU funds and state aid schemes;
3. Last but not least the availability skilled workforce with solid knowledge of technology and foreign languages;

Mrs FURDUI, as Romania took over the Presidency of the Council of the EU on January 2019, please give us 3 attributes to be taken into account by foreign investors when looking at business opportunities in Romania, from next year on.

• Availability of a talented, resourceful and highly skilled workforce at competitive costs compared not only to the Western Europe but also to the neighbouring countries that have accessed the EU earlier than Romania;
• The ‘depth’ of the market – despite the 11 years of EU membership, Romania is a large country (both geographically and also by population) that presents a lot of significant opportunities in many fields;
• The largest economic growth in Europe in the last year;
• A low taxation environment.

How would you define the fiscal environment in Romania for 2019?

Romania has been for many years and still is one of the most attractive fiscal environments in EU in terms of levels of profits and dividends taxation which has attracted a significant interest from the international players.

In the past year and especially recent months several fiscal measures have been adopted by the government despite the business sector opposition. It is unclear yet what would be the effect of these measures and the uncertainty that these measures have generated is not welcome but even in the worst case scenarios Romania still remains an attractive investment destination. .

Are there any indicators that may lead you to think there might be a new global economic crisis?

What is most worrying for me is the level of sovereign debt that has been accumulated, especially after the 2008 crisis, that has the potential of triggering a significant global economic crisis. Romania stands apart in this particular field, with a low level of public debt compared to its GDP but given the interconnected EU and world economies, we are also concerned this potentiality.

Could you tell us what are in your opinion the industries in which investors should put their money in?

There are many areas where Romania still needs investments. If I look closely at the evolution in recent years, a very dynamic sector has been the IT & C field that has transformed itself from the multinational support service model into the software development model.
Companies that develop solutions to achieve increased productivity by automating, or digitizing activities, and rethinking business processes are a new segment of investment interest.

Regardless of the category of investors, the general conditions for attracting capital are the improvement of infrastructure, the development of the domestic capital market, the access to the banking market for as many citizens as possible, the simplification of the procedures for obtaining professional advice, the legislative and fiscal predictability.

Infrastructure, tourism and agriculture also present the international investors with significant opportunities.

Is the 2019 Romania a fiscal hell or a fiscal heaven for investors?

For most sectors (banking sector excluded), for sure 2019 will not be a fiscal hell in terms bottom line results, as the level of taxation is still quite low compared to other EU countries. Nevertheless, as I have mentioned before, the business environment is concerned by the lack of fiscal predictability induced by the numerous fiscal changes occurring-in a short period of time an without the proper consultation with the business environment.

What are your business plans for FiNEXPERT for the following 5 years?

From my perspective, one of the biggest upcoming challenges in our business is the digitization and processes automation.

I personally believe that nowadays, an accountant or auditor should focus more than ever on developing his communication, digital and management skills. The accounting job will not disappear but it will transform by adapting to the technological challenges. Self-change is the key to moving forward. In this respect, in 2019, we are focusing on the further digitalization of our business processes in the same time managing the appropriate challenges in our HR policies caused by the digital era.

37 Grigore Mora Street, 011886,
Bucharest, Romania
Office : +40 21 529 95 00
www.fin-expert.ro