“Iťs hard to understand why Hydroelectrica, Romgaz, Transgaz and other major players that could give the capital market a boost do not appear on the stock exchange, although they could reinvigorate the capital market and the energy system, which lacks liquidity,” Constantin Bostina on Thursday told a press conference occasioned by the launch of the AOAR White Papers.
At the same time, the AOAR vice-president considers that the money gained from the capital market could be spent on the reengineering and modernization of the energy sector. In his opinion, making money in Romania is perfectly possible, one just needs to “understand how this money should be made.’
A “slothfulness impossible to understand” also thwarts the activity on the commodity exchange, said Bostina, mentioning that the massive presence of bulk products like coal, electricity, natural gas, black oil and various fuels would revive the market and sort out prices.
According to him, the reason why activity on the exchange markets is so unsatisfactory is that “each large company or ministry pursues petty interests and the system is excessively controlled from the central level.’ AOAR promised to initiate talks with the government to address this situation and establish the sectoral measures that need to be taken.
“Speaking about the situation on the domestic market, a not entirely true correlation is made – namely that between the unemployment level and the drop in domestic demand. Of course that unemployment leads to a restricted demand, but remittances in 2009 were also 25 percent lower than in 2008. What is starting to be a problem is that the shrinking domestic demand sweeps supplier and sub-supplier chains off the domestic market and the companies excessively turn to exports,’ said AOAR president Florin Pogonaru.
He added that we are now in the situation when 90 percent of domestic production is bound for export because the goods that are badly needed for achieving investments in the country, like machinery and equipment, are not being manufactured. “By discouraging domestic demand we make a mistake,” Pogonaru underscored.
In his turn, AOAR secretary general Cristian Parvan, the lead author of the White Papers, highlighted in this context that Romanian industry contributes only 25 percent of the GDP, whereas by contrast, France and Germany emerged from the crisis with the help of industry, and Great Britain, which relies on financial services, recovers at a slower pace.
“Exports could only be an engine of relaunch if they grew following a government strategy, and not as a result of policies led by multinational companies,” said the AOAR secretary general.