Last updated: 10 July 2014
Dana Gruia Dufaut, Managing Partner at the GRUIA DUFAUT Law Office
How profitable is the Romanian market and what are its most attractive sectors?
French investments are present in almost all sectors of the Romanian economy, having an important market position. 90% of the major French companies listed on the Paris stock exchange are present on this market. I am referring namely to French big players in sectors such as banking, insurance, automotive etc. These companies enrol their investments towards sustainable profitability, on the long run, according to the French model. Consequently, French investments in Romania have had an important role in the Romanian economy; many French companies have trusted the Romanian market since the beginning of the 90s. The attractiveness of the Romanian market was preserved during the 25 years that have passed since the revolution: a continuous potential of economic development, well oriented macro-economic indicators, qualified labour force.
How can French companies contribute to Romania’s economic growth and success?
Judging by the nature of the files handled by the law office founded by me in the early 90s, French companies’ contribution to the modernization and development of the Romanian business environment - and of the country in general, is considerable. At this point I am referring namely to the dynamic investment policies that these companies have followed, which have led them to a very good profitability, newly created jobs, professional training for Romanian employees and, in general, their contribution to the stabilization of the trade balance for export companies etc.
Moreover, French investments equally play a role in sponsoring social, cultural or sports activities, as French companies support a series of events in these areas. One must not neglect the activities of French Cultural Institutes, both the one in Bucharest and the ones in the country. Negative aspects also exist: if some are related to business risks, others have nothing in common with business. Here I am referring to the delays in infrastructure modernization, especially with respect to roads, railways etc. Then, Romania has to deal with many challenges, among which the most pressing seems the modernization of the administration and the credibility of the judiciary system, the agricultural reform… and I might also add a less invoked challenge: to inspire trust to its own citizens.
What type of challenges can French investors in Romania expect?
I consider that opportunities have not been exhausted in neither one of the French areas of expertise and I have in mind sectors such as services, agriculture and food or tourism. From the investors’ perspective, the existing challenges are related to the continuously changing Romanian legislation and to the perpetuation of a suffocating bureaucracy. Strategically speaking, investors, including French ones, see Romania as a profitable destination on the long run and still fiscally and operationally attractive.
You have recently been chosen as consular advisor for Romania and Moldova. Specifically, what does this position involve?
The consular advisor position was created during the reform initiated, in France, in 2013, regarding the representation of French citizens residing outside the country. Thus, according to the French law, Romania and Moldova dispose of three elected consular advisors, whose main responsibilities are to provide counselling to French citizens residing in these countries in relation to the French Embassy or consulates. These three consular advisors shall take part to the election of French senators for the diaspora.
Interview published by Business Review, July 2014