PROFESSIONAL ASSOCIATIONS WARN: Romania is headed towards economic collapse

The European Commission (CE) is studying the project for overcoming the crisis that the General Confederation of the Romanian Industrial Employers (UGIR 1903) has submitted to the authorities of Bucharest, which suggests the creation of a state company which would operate in the construction and public works sector, which would select 75% of its employees from workers laid off as a result of the problems in the economy.

The proposal of UGIR 1903 provides the creation of state owned not-for-profit company, intended to cushion the social impact generated by the flurry of expected layoffs, that the BURSA newspaper was the first to report on, recently.

The company which would be suggestively named "The National Company for Big Construction Works using Laid-Off Workers" (CNMLC) would be managed by professional associations and unions and by a government official.

The initiators of this project suggest that this new company get the public work contracts without any calls for tenders, subsidized low-interest rate loans and a special tax status, which provides the total or partial elimination of taxes paid.

In return, the company will be forced to reinvest its profits in order to ensure its own development, for instance, by opening branches in towns where the rate of unemployment will go above 8%.

Marius Opran claims that he talked to Czech Vladimir Spidla, the European Commissioner for Employment, Social Affairs and Equal Opportunities, about this issue. The European official even requested a case study analysis on the creation of similar companies in other EU member states.

"As soon as we get the Commission"s agreement in writing, we will submit the project to the Government", Marius Opran added. The UGIR 1903 leader hinted that the project has the blessing of the Brussels authorities, the only problem right now being "whether we have leaders capable of putting it into practice", especially as, unemployment-wise, "Romania is on its way to a historic high, up from a historic low".

• Professional associations want a quarterly state budget

UGIR 1903 representatives said that, during the current crisis where "Romania is approaching economic collapse", a shift to a quarterly state budget, instead of a yearly one, would be recommended.

"Because of this crisis, we run the risk of losing all of our citizen rights and to see a dissolution of the rule of the law", Opran said.

In turn, the chairman UGIR 1903, Ioan Cezar Corâci claimed that wasteful spending of taxpayer money must be stopped at any cost, like in the case of credit accountants who charged more than was needed.

Corâci explained that several ministries are in such a situation, in particular the Ministry of Education which expects 6% of the GDP from Mr. Boc"s government, whereas "last year"s budget execution for Education was 3,8% of the GDP".

"Our Government is the only one in the EU that so far has not completed an anti-crisis plan", UGIR 1903 officials said.