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Romania and Germany must cooperate to maintain their competitiveness

5 September 2024
Economics&Markets
Bogdan Tudorache

Against the background of increasingly strong competition from regions such as Asia or America, Romania and Germany must cooperate closely to maintain their competitiveness. At the same time, the European Green Deal (Green Deal) should be supplemented with an Industrial Pact, which would allow the industry to remain competitive, while also protecting the environment, were the opinions of the guests of AHK Romania at the round table organized on Tuesday with the theme “Competitiveness in Europe”.

Moderated by the general director of the Romanian-German Chamber of Commerce and Industry, Sebastian Metz, the discussion was held between the head of the European Commission Representation in Romania, Ramona-Iulia Chiriac, the ambassador of the Federal Republic of Germany in Romania, Dr. Peer Gebauer, the Minister of Economy, Entrepreneurship and of Tourism, Ștefan-Radu Oprea and the President of AHK Romania, Andreas Lier, with the participation of numerous members of the business community in the two countries.

“At a time when European business feels that it is losing ground to other countries such as China or the United States, I propose that we exchange ideas and points of view on how we can further act to increase the competitiveness and productivity of our economies “, was the invitation launched by Sebastian Metz at the beginning of the debate.

In the opinion of the Minister of Economy, competitiveness in Romania is closely linked and influenced by the European one, thanks to the Green Pact and other regulations that the industry must take into account and that have consequences on productivity, on costs and on the transformations that companies go through. “We want to live in a pollution-free world, but it’s important to have competitive companies as well. We need to see how we can support these businesses to be greener, but also see what customers actually want. The Green Deal raised prices. If you want to be greener, you need more energy. Do we all agree to share these costs?”, asked Radu Oprea.

He mentioned the investments made by the Romanian government in green energy, which also includes nuclear energy or gas, which ensures the transition to green energy. Another direction of investments is the construction of carbon storage capacities, for which the state grants subsidies to companies investing in the field.

Regarding research and innovation, the minister explained that the Romanian state is a supporter of the public-private partnership for investments in research and development activities, especially in areas such as the defense industry or microelectronics.

At the European level, the measures to strengthen competitiveness were presented by the head of the EC Representation in Romania, Ramona Chiriac. She stated that the future European Commission will continue to support a strong industry in Europe, which emits as little carbon dioxide as possible, in parallel with the creation of resilient value chains.

“Europe is a continent of industry, companies and innovation. Its reinvention through the technological and industrial revolution, through global competition and through changing societies are strengths that can only be achieved through the single market. That is why the completion of the European single market is of strategic importance for our global position,” explained Ramona Chiriac. This involves making all business-related operations easier and faster, simplifying the regulatory framework, reducing bureaucracy and developing digital infrastructure.

“Speed, coherence and simplification will be the political priorities of the European Union,” she stressed. At the same time, reducing the impact of climate change remains an important objective: “Decarbonisation of the economy and the creation of new markets based on sustainability and circularity are necessary. Green technologies are a growing market, estimated globally at €600 billion per year by 2030, which is twice the current level. Romania has a great potential to integrate into the value chains of green technologies.”

One of the most pressing problems affecting the business environment is the complete non-inclusion of Romania in the Schengen area. “This remains a barrier to trade and investment, and the Commission will continue to advocate for the full inclusion of Romania and Bulgaria in the Schengen area,” said Ramona Chiriac.

For his part, AHK President Andreas Lier said that Europe is losing its production capacity and competitiveness due to multiple causes, such as the energy crisis, bureaucracy and regulations, the geopolitical context, the labor market and the demographic situation. “These are challenges for companies. But there are also opportunities, and Romania plays an important role in reducing challenges and creating opportunities. That’s why we need to act together, we need answers and bold actions”, stated Andreas Lier.

In the context, he highlighted the Antwerp Declaration, supported by more than 1,000 companies and organizations, with a view to establishing a European Industrial Pact, which would complement the European Green Pact, revitalize European industry, by strengthening the basic industrial sectors and which pave the way for a resilient, competitive and sustainable Europe.

The close cooperation between Romania and Germany was also highlighted by the German ambassador in Bucharest, Dr. Peer Gebauer. In his speech, he emphasized that Germany and Romania benefit enormously from close economic relations. Especially in difficult times, the European Union must strengthen its competitiveness, both countries playing an important role in this regard. “Furthermore, new measures are needed to attract key industries to Europe, such as semiconductors. It is time for a rethink, in the sense of a greater availability for risks and for innovative projects, including in the field of artificial intelligence. We must not fall behind other parts of the world in these areas. It is also important to strengthen the resilience of our economy in Europe, diversify our supply chains and not become dependent on different suppliers of raw materials,” said the German ambassador.

The round table “Competitiveness in Europe” was organized by AHK Romania during the monthly meeting of AHK members, the first of its kind after the summer break.

 

 

 

 

Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.

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