euro|topics - Ionut Popescu

07/09/2008

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Popescu, Ionut

5 articles of this author have been cited in the European Press Review so far.

Capital - Romania | 05/09/2008

A country without motorways

"Romania has not managed to build even a hundred kilometres of motorway in the past 20 years of transition," writes the business paper Capital. "I believe there is not another European country that has built less. We always had other priorities, and infrastructure was never among them. Then there was the lack of money, poor legislation and incompetence in the area of infrastructure. Now the lack of infrastructure is slowing down the country's development. A single example illustrates this: Mercedes built its plant in Hungary even though our country was among the favourite candidates. Because the roads and motorways that the Germans at Mercedes need exist only on the drawing board the Hungarians seemed the better option. And this is a case that got media attention: God only knows how many other investors have steered clear of Romania without a fuss being made simply because our infrastructure cannot meet the needs of industrial development. ... Another problem is the unresolved distribution of property. ... The few projects on which work has begun are therefore on a bumpy course: for instance, to widen streets you need the permission of the people who own the land, but you need to know whose land you are going to expropriate for that ... The studies provide clear evidence that countries that have developed economically have two things in common: a legal system regulating the distribution of property and the corresponding infrastructure."

Capital - Romania | 28/08/2008

Surprising growth

While the rest of the world suffers from economic crisis, the Romanian economy is currently witnessing an unprecedented boom. The business newspaper Capital looks for reasons: "For the global economy the first two quarters of 2008 were among the most difficult in the last 20 years. ... And what is happening in Romania? Here half-yearly growth reached an all-time high at 8.6 percent. The Romanian economy has remained unaffected by international developments, although its ties to the rest of the world have never been so close. ... What did all the foreign analysts and rating agencies say again? A belly flop for the Romanian economy, a rapid decline in growth, a possible recession. Romanian commentators ... have been preaching for years that growth is 'not sustainable'. But in the meantime the economy has gone its own way. ... How to explain that? Did the Tăriceanu government introduce some kind of wonder programme seven or eight months ago? Hardly. We are now reaping the benefits of measures taken in 2005, especially of the flat tax."

Capital - Romania | 05/05/2008

Romanian capitalism

Ionut Popescu explains the fate of Romania's small shareholders with the example of Petromidia oil refinery. "Today the average share price is around 0.02 Euros. Four years down the road it is lower than at the beginning, even if the privatisation of the refinery was a success story. Meanwhile, the enterprise's principal shareholder has become one of the richest men in Romania, because he sold the pearls of the crown. The money of all those who invested alongside the Romanian entrepreneur four years ago has disappeared, although their majority partner was extraordinarily rich. By contrast, Microsoft owner Bill Gates' shareholders became rich along with him. In both cases we talk about legal business dealings. But the fate of small shareholders shows us what kind of capitalism we have in Romania and how much it differs from that in America."

Capital - Romania | 11/01/2008

Returnee programme for Romanian emigrants

The Romanian government has announced a special programme designed to encourage the return of citizens who have emigrated. Some three million Romanians have moved abroad in recent years; in 2007 alone, they have sent about 7 million euros back home. Ionut Popescu observes: "Just as these people did not leave at the government's behest, so will they not be moved to return. The government won't manage to raise the average wage from 800 euros to the 1,000 euros that a Romanian can earn abroad. Only those who were already planning to come back will do so. The rest, whose children are going to school abroad and who are founding Romanian ex-pat communities, won't return, whatever the government does to entice them."

Capital - Romania | 11/01/2007

Romanian legal reform

With Romania's entry into the EU, the country's legal reform is under observation of the EU Commission. Should Romania depart from its reform course, it will risk losing EU funds. Ionut Popescu praises Minister of Justice Monica Macovei for her efforts toward reform. "She convinced the Europe representative that the Minister of Justice in Romania is neither protecting its party colleagues nor using the law to agitate political opponents... For the first time, former prime ministers and ministers, but also those currently serving, would be prosecuted. Two years ago it was still unthinkable to arrest a prefect or mayor. Has the economic branch also become more honest? Of course public moneys will continue to be pilfered. But no one - be it minister or legislator- dares any longer to call up a prosecutor or judge to tell him that he should mete out mild justice in a particular case if he wants to keep his job."

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