ROMANIA'S NEEDED REFORMS

Following Romania’s accession to the EU, several legal reforms have been implemented to strengthen the rule of law. However, the high level of corruption remains a major obstacle for Romania’s economic prosperity and growth, as it impacts the country’s political and social stability and discourages private investment. Both the public and the private sectors are affected by corruption and, as such, they should engage in a joint effort to effectively fight corruption.

Further reforms of Romania’s legislation and institutions should include the improvement and stronger enforcement of national and international framework legislation. Romania’s efforts to modernize its criminal legislation against corruption needs to be further supported by more effective law-enforcement actions to deter bribery and by a more effective application of international judicial cooperation systems to curb cross-border corruption schemes.

The participation of the civil society, including unions and business organizations, in anti-corruption initiatives and other administrative reforms should be increased. Larger public participation should help identify sources of corruption as well as the most appropriate deterrent mechanisms, and furthermore, as corruption is linked to a high level of bureaucracy and institutional inefficiency, the reform of the public services and administration should also be continued. Awards in public procurement procedures should be given predominantly to companies that have demonstrated a full commitment to fighting corruption through implementing adequate and tight internal anti-bribery policies and codes of ethics, as well as establishing a zero tolerance policy on bribes, facilitation payments and other types of improper conduct.

Romanian public authorities should also display full transparency and accountability in managing public money, by allowing professional, external auditing of their respective budgets and of their public money spending.

The hiring and promotion of government and public officials, both at the central and local level, needs to observe the highest standards of transparency, integrity and civic conduct.

There is much concern about the lack of transparency by which public authorities routinely engage in lawmaking that affects the rights and interests of companies doing business in Romania. Thus, in the cases of several enactments applicable to the entire business community (e.g. tax regulations, primary regulations in civil and criminal law and public procurement) or to a certain segment thereof (e.g. pharmaceuticals, real estate, distribution and infrastructure), the public authorities have often ignored the principle of transparency and consultation with civil society and business community in the decision-making process.

In this regard, both the business environment and the representatives of international institutions have identified: an absence of announcements and statements of grounds for proposed changes to law, a lack of public consultation with concerned subjects or with legally established associations, a disregard for proposals and comments received from the latter, and even a complete disregard for the required legal procedures. It is important to stress that due observance of the requirements concerning transparency in decision-making is not a mere formality under Romanian law, but a material stage in the lawmaking process, aimed at guaranteeing the identification of the best reasoned and justified legislative solutions among potential alternatives, along with the implementation of those rules which are actually necessary, sufficient, fair, enforceable and able to lead to a high degree of legislative stability and efficiency, in the context where the legitimate rights and interests of Romanian citizens and the business community are observed and protected.

The possibility of business associations to participate in the decision-making process, and express their grounded stance in connection with draft legislation and public policies having an impact on the business environment, actually represents an advantage to the initiating authorities, which may thereby benefit from the practical experience and areas of expertise of these associations, and further ensure a high degree of legislative stability and efficiency in a fair and transparent manner.

The Romanian business community, through its representative associations, should be considered as an essential partner in the process of drafting new legislation that affects the business environment, and that as such, the public authorities should ensure a proper framework for exercising the rights and prerogatives related to the exchange of information concerning draft legislation, proposals of amendments, and the actual implementation of the proposals and opinions addressed to the initiators of legislation that impact the business environment.

Public authorities must use a structured and transparent approach in the decision-making process and adoption of legislation, in terms of: ensuring the necessary time to consult all involved/affected parties, avoid implementing measures with the potential to distort competition, clearly formulate the content of legislative projects and launch them in public debate, and provide a solid scientific reasoning and justification towards legal projects to be undertaken. The public consultation process also needs to be transparent and aimed at adopting legislation that represents the result of real and constructive dialogue between all stakeholders, and not merely an observance of some formal consultation requirements without genuinely considering the proposals advanced by the parties.

At the EU level , Romania needs to prepare sound arguments to support its case during negotiations . The current track-record in the implementation of EU Structural funds as well as general performance in public policy areas which have a significant EU component [such as those covered by the Cooperation and Verification Mechanism and Schengen Accession] proves that negotiation capacity at EU level is a significant factor for success. Taking also into account the global and European economic climate, with the significant impact of the economic crisis, the negotiation environment is characterised by various tensions which impact the positions of partners, their negotiation stance, as well as flexibility. However, without having solid preparatory work provided by national institutions and actors, negotiation at EU level may prove a rather difficult exercise.